Klondike Gold Corp (CVE:KG) (OTCPINK:KDKGF) said Tuesday that it plans to raise as much as C$2.5 million in a non-brokered private placement to fund continued exploration and development of its Yukon properties.
The placement is divided into flow through shares (a type of common share which allows the company to incur eligible exploration expenses up to the amount paid by the buyer) and normal common shares.
The flow-through shares will be offered at a price of C$0.30 per unit, with each unit containing one share and one-half a share purchase warrant. The normal shares will go for C$0.25 per unit.
READ: Klondike Gold eyeing potential open-pit gold resource as it kicks off drilling again at Lone Star
Each whole warrant allows its holder to purchase a common share at a price of C$0.45 for a period of two years after the offering closes. The company can move that date up if its shares trade above C$0.60 for 10 consecutive trading days.
Klondike is a Vancouver-headquartered gold exploration company advancing its wholly-owned Klondike District gold project located in Dawson City, Yukon Territory. The company's property covers 557 square kilometres and houses 2,942 claims, from which 20 million ounces of the yellow metal have been recovered from gravel beds since 1896, yet no underground mine has ever been built.
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel