JUST THE BEGINNING OF M&A ACTIVITY IN GOLD COMPANIES: Klondex Canada
Klondex is pleased to be forming Klondex Canada. Certain members of Klondex’s board and management team will continue on at Klondex Canada. Hecla will subscribe for US$7.0 million of common shares of New Klondex in exchange for a 13.46% equity interest, based on a pre-investment Klondex Canada valuation of US$45 million. Klondex Canada intends to make an application to list its shares on the TSX-V.
Ownership in Klondex Canada, a gold company created to leverage Klondex’s exploration expertise and significant mining infrastructure assets in Canada. Klondex shareholders will also receive shares of a newly formed company (Klondex Canada) which will hold Klondex’s Canadian assets, including the True North and Bison Gold Resources properties.