Klondike Silver Corp. Amends and Closes Private Placement
#711-675 WEST HASTINGS STREET VANCOUVER, B.C. CANADA V6B 1N2 TELEPHONE: 604-685-2222 FAX: 604-685-3764 WWW.KLONDIKESILVER.COM
FOR IMMEDIATE RELEASE: July 8, 2010 TSXV: KS
Klondike Silver Corp. Amends and Closes Private Placement
KLONDIKE SILVER CORP. (TSX-V: KS) is pleased to announce an amendment to and the closing of a private placement previously announced June 1, 2010. The total number of units was increased from 15,000,000 to 16,200,000 at $0.05 per unit for total proceeds of $810,000. Each of the flow through units consisted of one flow through common share and one non flow through non transferable share purchase warrant entitling the holder to purchase one additional common share for two years at the price of $0.10 per share. Each of the non flow through units consisted of one non flow through common share and one non-flow through, non transferable share purchase warrant entitling the holder to purchase one additional common share for five years at a price of $0.10 per share in years one and two, $0.15 per share in year three and $0.20 per share in years four and five. Any shares issued pursuant to the private placement will be subject to a four month hold period. The proceeds of the private placement will be used for exploration programs and general working capital
In connection with the transactions, a cash commission totaling $40,800 was paid to Limited Market Dealership Inc. and Northern Securities. Included in the private placement was the sale of 10,000,000 flow-through units to MineralFields Group.
The Company announces that it has received TSX approval to extend the term and reduce the exercise price of 6,115,000 warrants issued by the Company which currently expire on July 9, 2010 (the "Warrants"). The expiration date of the Warrants will be extended for an additional 3 years, expiring on July 9, 2013.
The warrant exercise price is amended to $0.10 up to and including July 9, 2011. If the closing price for the Company's shares during this period is $0.125 or greater for 10 consecutive trading days, then the Warrantholder will have 30 days to exercise their warrants; otherwise the warrants will expire on the 31st day. The warrant exercise price will be $0.15 up to and including July 9, 2012. If the closing price for the Company's shares during this period is $0.1875 or greater for 10 consecutive trading days, then the Warrantholder will have 30 days to exercise their warrants; otherwise the warrants will expire on the 31st day. The warrant exercise price will be $0.20 up to and including July 9, 2013. If the closing price for the Company's shares during this period is $0.26 or greater for 10 consecutive trading days, then the Warrantholder will have 30 days to exercise their warrants; otherwise the warrants will expire on the 31st day.
After reviewing results from its Walsh Silver and Nickel South properties, the Board of Directors has determined not to continue with its options on these properties.
About Klondike Silver:
Klondike Silver is a member of the Hughes Exploration Group of Companies and is led by a team with an excellent track record of discovery and development in Canada.
Klondike Silver Corp. has assembled a quality portfolio of silver properties in historic mineral districts in North America, and is applying advanced exploration technologies to add value to these core assets. Klondike Silver is reviving the Gowganda and Elk Lake silver camps in Ontario, and the world-famous Klondike district of Yukon Territory. The Company owns a 100 TPD fully operational flotation mill in Sandon, BC, which is currently processing material from local mines in the historic Slocan Silver Camp.
About MineralFields:
MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world.
Information about the MineralFields Group is available at www.mineralfields.com.
Contact Information:
Corporate Inquiries: Kevin Hull or Alan Campbell, (604)-685-2222 Email: [email protected]
Or visit Klondike Silver’s web-site: www.klondikesilver.com to see Smartstox interviews with Company President, Richard Hughes.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy or contents of this news release.
The statements made in this news 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.