Amended PP ClosedFurther dilution and... cash for exploration and working capital
FOR IMMEDIATE RELEASE: February 02, 2010 TSXV: KS
Klondike Silver Corp: Private Placement Amended & Closed
KLONDIKE SILVER CORP. (TSX-V: KS) is pleased to announce an amendment to and the closing of a private placement previously announced December 18, 2009. The total number of units was increased from 20,000,000 to 21,370,000 for total proceeds of $1,389,050. 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
.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
.10 per share in years one and two,
.15 per share in year three and
.20 per share in years four and five. The units are priced at
.065 per unit. Any shares issued pursuant to the private placement will be subject to a four month hold period.
In connection with the transactions, cash commissions totaling $85,480 were paid to Haywood Securities Inc., Canaccord Financial Inc., Frank Durant, Bolder Investment Partners and Limited Market Dealer Inc. Included in the private placement was the sale of 11,538,462 flow-through units to MineralFields Group.
The proceeds of the private placement will be used for exploration expenditures on the Company’s British Columbia and Ontario mineral properties as well as for general working capital.
The Company announces that Darcy Hughes has been appointed a director of Klondike Silver Corp. effective December 29, 2009. Mr. Hughes has been involved with mineral exploration since 1983 and has served on the boards of various publicly traded companies in the mining and petroleum exploration fields, as well as private mining and manufacturing companies. He is the VP Corporate Admin and owner of Pro CNC, a manufacturing business in Bellingham, Washington, and is a director of Abitibi Mining Corp., Amador Gold Corp., Chalice Diamond Corp., Golden Chalice Resources Inc., Klondike Gold Corp. and Sedex Minerals Corp. and Zinccorp Resources Inc.
The Company also announces the resignation of John Keating as a director effective January 22, 2010. The Board of Directors expresses their thanks and appreciation to Mr. Keating for his invaluable contribution and service to the Company.
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.
About Klondike Silver:
Klondike Silver is a member of the Hughes Exploration Group of Companies and is led by a team with a stellar 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. As well, Klondike Silver entered into a joint venture with Kootenay Gold Inc. to explore a copper-porphyry property in the state of Sonoro in northern Mexico.
Contact Information:
Corporate Inquiries: Kevin Hull or Alan Campbell, (604)-685-2222 Email: info@klondikesilver.com
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.