KLONDEX MINES LTD. T.KDX

Metals & Mining Industrial Metals & Minerals

"Klondex Mines Ltd is a gold and silver producer engaged in exploration, development, and production of its properties. The company has interests in three mineral properties: the Fire Creek Mine, and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine (formerly the Rice Lake Mine) and mill in Manitoba, Canada. The revenue of the company is generated from the sale of gold and silver."

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KLONDEX MINES LTD. > Acquisition of Rice Lake Mine and Mill Complex for $32M

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Comment by delt1970on Dec 21, 2015 7:34pm

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Post# 24403093

RE:Acquisition of Rice Lake Mine and Mill Complex for $32M

Jamie Spratt, Clarus Securities (12/18/15) "Klondex Mines Ltd. announced the acquisition of the Rice Lake mine and mill in northern Manitoba. For a purchase price of $32M, the company has acquired 455 Koz historic reserves (2.2 Moz resource) and the 2,500 tpd Rice Lake mill. While we believe investors will be cautious given the challenged history of the asset, the price and management’s operational track record give us confidence in the potential to realize value from the transaction. . .overall, we see the risk-reward profile of the transaction as favorable."

Andrew Mikitchook, M Partners (12/18/15) "Klondex Mines Ltd. announced it entered into an agreement to purchase the Rice Lake mine and mill complex located near Bissett, Manitoba for $32M consisting of $20M cash at closing and $12M by way of a promissory note at 4% interest. . .we model Rice Lake at a net asset value of CA$83M or CA$0.54/share. . .we are maintaining our Buy rating and raising our 12-month target price slightly to CA$4.75/share (was CA$4.50/share)."