Klondike Gold Closes Private Placements
FOR IMMEDIATE RELEASE TSX‐V: KG February 11, 2011 www.klondikegoldcorp.com
KLONDIKE GOLD CLOSES PRIVATE PLACEMENTS
VANCOUVER, BC – Klondike Gold Corp. (TSX‐V: KG) (the “Company”) is pleased to announce that it has closed the brokered and non‐brokered private placements previously announced. The non‐flow through private placement consisted of a total of 9,316,000 units at a price of $0.20 per unit. Each unit consisted of one non flow through common share and one‐half of one non‐flow through, non‐transferable share purchase warrant (the "Warrant"). Each full Warrant entitles the holder to purchase one additional common share of the Company at a price of $0.25 for a period of three years from closing the private placement.
The flow through private placement consisted of 488,000 units at a price of $0.25 per unit. Each unit consisted of one flow through common share and one‐half of one non‐flow through, non‐transferable share purchase warrant (the "Warrant"). Each full Warrant entitles the holder to purchase one additional common share of the Company at a price of $0.30 for a period of two years from closing the private placement.
There are four month hold periods on all shares issued, which expire as follows: 3,850,000‐March 27, 2011; 3,411,000‐April 17, 2011; and 2,543,000‐April 30, 2011.
In connection with the private placements, commissions were paid as follows:
| Payable to: | Cash | Compensation Options ($0.20 each consisting of 1 share & ½ warrant to purchase an additional share at $0.25 for 2 years) |
|---|---|---|
| Haywood Securities Inc. | $65,720 | 328,600 |
| M Partners | $60,616 | 303,080 |
| PI Financial Corp. | $3,780 | 18,900 |
| Red Plug Capital | $34,212 | 171,060 |
| ($0.25 each consisting of 1 share & ½ warrant to purchase an additional share at $0.30 for 2 years) | ||
| Leede Financial Associates Ltd. | $3,720 | 14,880 |
| M Partners | $2,910 | 11,640 |
The proceeds of the private placements will be used for exploration programs on its British Columbia and Ontario Properties and for general working capital.
About Klondike Gold Corp
Klondike Gold is a large landholder in southeastern British Columbia as well as in the Klondike District of Yukon Territory, an area which produced between six and twelve million ounces of gold during its historic gold rush.
Contact Info:
Alan Campbell, Director Phone: (604) 685‐2222 Email: [email protected]
Please visit the Company’s website: www.klondikegoldcorp.com for more information on the diamond properties in Ontario, our holdings in the Klondike and our properties in southeastern BC.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release. The statements made in this Press Release may contain forward‐looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.