Klondike Gold Closes $508,500 Private Placement

Rhea-AI Summary

Klondike Gold (KDKGF) has completed a non-brokered private placement raising $508,508.95, including $208,508.95 in flow-through shares. The company issued 3,207,830 flow-through shares at $0.065 per share and 5,000,000 units at $0.06 per unit. Each unit includes one common share and one purchase warrant, exercisable at $0.10 until December 27, 2026.

The securities have a hold period until April 28, 2025. One company insider participated, acquiring 900,000 flow-through shares and 1,250,000 units. The proceeds will fund exploration of Yukon properties and working capital needs.

Positive

• Successfully raised $508,508.95 in new capital
• Insider participation demonstrates management confidence

Negative

• Small raise amount indicates funding scope
• Potential dilution from 8.2 million new shares and 5 million warrants

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / December 27, 2024 / Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTCQB:KDKGF) ("Klondike Gold" or the "Company") is pleased to announce that the Company has closed a non-brokered private placement financing, raising $508,508.95 of which $208,508.95 is flow-through (the "Private Placement").

In closing the Private Placement, the Company issued 3,207,830 flow-through shares at a price of $0.065 per flow-though share, with each flow-through share comprised of one common share which is a "flow-through" share for Canadian income tax purposes. (the "Flow-Through Shares"). The Company further issued 5,000,000 units at a price of $0.06 per unit, with each unit comprised of one common share and one share purchase warrant (the "Units").

A total of 5,000,000 share purchase warrants issued in connection with the Private Placement are exercisable at a price of $0.10 per share until December 27, 2026.

All securities issued in connection with the Private Placement are subject to a four month and one day statutory hold period expiring on April 28, 2025, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

One insider of the Company participated in the Private Placement and acquired an aggregate of 900,000 Flow-Through Shares and 1,250,000 Units. The purchases by this insider constitute "related party transactions" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuances are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as they are distributions of securities for cash and the fair market value of the Units issued to, and the consideration paid by, the insider did not exceed 25% of the Company's market capitalization. No new insiders were created, nor any change of control occurred, as a result of closing the Private Placement.

The Company intends to use the proceeds from the financing to continue exploration and development of the Company's Yukon properties, as well as for general working capital.

ABOUT KLONDIKE GOLD CORP.

Klondike Gold is a Vancouver based gold exploration company advancing its 100%-owned Klondike District Gold Project located at Dawson City, Yukon, one of the top mining jurisdictions in the world. The Klondike District Gold Project targets gold associated with district scale orogenic faults along the 55-kilometer length of the famous Klondike Goldfields placer district. Multi-kilometer gold mineralization has been identified at both the Lone Star Zone and Stander Zone, among other targets. The Company has identified a Mineral Resource Estimate of 469,000 Indicated and 112,000 Inferred gold ounces¹ , a milestone first for the Klondike District. The Company is focused on exploration and development of its 727 square kilometer property accessible by scheduled airline and government-maintained roads located on the outskirts of Dawson City, Yukon, within the Tr'ondëk Hwëch'in First Nation traditional territory.

ON BEHALF OF KLONDIKE GOLD CORP.

"Peter Tallman"

Peter Tallman
President and CEO

FOR FURTHER INFORMATION:

Telephone: (604) 609-6138
E-mail: info@klondikegoldcorp.com
Website: www.klondikegoldcorp.com

¹ The Mineral Resource Estimate for the Klondike District Property was prepared by Marc Jutras, P.Eng., M.A.Sc., Principal, Ginto Consulting Inc., an independent Qualified Person in accordance with the requirements of NI 43-101. The technical report supporting the Mineral Resource Estimate entitled "NI 43-101 Technical Report on the Klondike District Gold Project, Yukon Territory, Canada" has been filed on SEDAR at www.sedarplus.ca effective November 10, 2022. Refer to news release of December 16, 2022.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain statements contained in this news release constitute "forward-looking statements". When used in this document, the words "anticipated", "expect", "estimated", "forecast", "planned", and similar expressions are intended to identify forward-looking statements or information. These statements are based on current expectations of management, however, they are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this news release. Readers are cautioned not to place undue reliance on these statements. Klondike Gold does not undertake any obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date hereof, except as required by securities laws.

Forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, market volatility; the state of the financial markets for the Company's securities; fluctuations in commodity prices and changes in the Company's business plans. In making the forward looking statements in this news release, the Company has applied several material assumptions that the Company believes are reasonable, including without limitation, that the Company will continue with its stated business objectives and its ability to raise additional capital to proceed. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. The Company seeks safe harbor.

For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedarplus.ca.

SOURCE: Klondike Gold Corp.

View the original press release on accesswire.com

FAQ

How much did Klondike Gold (KDKGF) raise in its December 2024 private placement?

Klondike Gold raised $508,508.95, of which $208,508.95 was through flow-through shares.

What are the terms of KDKGF's December 2024 warrant issuance?

The warrants are exercisable at $0.10 per share until December 27, 2026.

When does the hold period expire for KDKGF's December 2024 private placement securities?

The securities have a four-month and one-day hold period, expiring on April 28, 2025.

How will KDKGF use the proceeds from its December 2024 private placement?

The proceeds will be used for exploration and development of Yukon properties and general working capital.

What was the insider participation in KDKGF's December 2024 private placement?

One insider participated, acquiring 900,000 flow-through shares and 1,250,000 units.