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Klondike Gold Corp to raise up to C$2.75 million to boost exploration at Yukon projects

The company said funds raised will go towards continued exploration and development of the company's Yukon projects and for general working capital
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Klondike is focused on exploring the Lone Star Gold target, located on the outskirts of Dawson City, Yukon

Klondike Gold Corp (CVE:KG) (OTCMKTS:KDKGF) said Wednesday it is aiming to raise up to C$2.75 million by way of a non-brokered private placement to bolster the company's exploration and development of the company's Yukon projects. 

Klondike is focused on exploring the Lone Star Gold target at the confluence of Bonanza and Eldorado creeks, within a 557 sq/km property located on the outskirts of Dawson City, Yukon within the Tr'ondek Hwech'in First Nation traditional territory. 

The company said the placement will be a mix of flow-through funds and non-flow-through funds. 

READ: Klondike Gold identifies extensive gold soil anomalies at Yukon property

The flow-through placement will consist of the sale of flow-through shares at C$0.22 per unit, consisting of one common share and one share purchase warrant. A flow-through vehicle passes income to investors to avoid double taxation.

The non-flow-through placement will consist of the sale of units at a price of C$0.20 per unit, consisting of one common share and one share purchase warrant.

The company said each warrant will entitle the holder to purchase one common share at a price of C$0.35 per common share for a period of three years from closing and that finder's fees may be paid.

Funds raised will go towards continued exploration and development of the company's Yukon projects and for general working capital

All securities issued under the placement will be subject to a four-month hold period from the date of issue in compliance with applicable securities laws. The placement is subject to final acceptance of the TSX Venture Exchange.

Shares of Klondike Gold were at C$0.19 on Wednesday. 

Contact Katie Lewis at [email protected]

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