Klondike Gold Closes $2,000,000 Private Placement

Vancouver, British Columbia (FSCwire) - Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) is pleased to report that the Company has closed its non-brokered private placement financing (the “Financing) for total gross proceeds of $2,000,000 of flow-through funds. 

Financing:

The Company has issued 10,000,000 flow-through units (each a “FT Unit”) at the price of $0.20 for gross proceeds of $2,000,000.  Each FT Unit is comprised of one common share which is a “flow-through” share for Canadian income tax purposes and one non flow-through common share purchase warrant (a “Warrant”) exercisable to purchase one additional non flow-through common share at the price of $0.30 until April 4, 2020.  The securities issued in connection with this Financing will be subject to a statutory hold period which expires on August 5, 2017. 

The Company has also recently received $251,614 from the early exercise of 1,508,071 warrants at $0.15 and $0.20 which were set to expire in November and December 2017.

The net proceeds of ~$2M raised through the Financing and concurrent warrant exercise will be used for exploration and development of Canadian mineral properties and for general working capital purposes.

Pursuant to the Company’s Stock Option Plan a total of 1,400,000 incentive stock options have been granted to directors, officers, consultants, and employees of the Company.  The options are exercisable at a price of $0.26 per share for a period of 10 years, subject to regulatory approval.

ABOUT KLONDIKE GOLD CORP.

Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia, and Dawson City, Yukon Territory.  The company is focused on exploration and development of its Yukon gold projects, accessible by government maintained roads located on the outskirts of Dawson City, YT, covering a district-scale 527 square kilometers of hard rock and 20 square kilometers of placer claims including “McKinnon Creek” featured on the Discovery Channel show “Gold Rush”.

On behalf of Klondike Gold Corp.

“Peter Tallman”
President and CEO
(604) 609-6110
E-mail:  info@klondikegoldcorp.com
Website:  www.klondikegoldcorp.com

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.

Disclaimer for Forward-Looking Information

“This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Klondike in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Klondike’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.

Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Klondike disclaims any obligation to update or revise any forward-looking information or statements except as may be required.”

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