Klondike Silver Closes Private Placement
June 2, 2016 - Vancouver, Canada – Klondike Silver Corp. (the “Company”) (TSX.V: KS) is pleased to announce that it has closed the private placement previously announced on May 10, 2016. The Company has issued 20,166,667 units (“Units”) for gross proceeds of $605,000. Each Unit, issued at a price of $0.03, consists of one common share and one non-transferable warrant (a “Warrant”). Each Warrant may be exercised by the holder to purchase an additional common share at a price of $0.05 for 48-months from closing. There will be no forced conversion on these Warrants.
Finder’s fees of $54,300 have been paid in cash to qualified parties.
The following table discloses the estimated use of proceeds for this private placement:
| $ | |
|---|---|
| Future Working Capital | 211,300 |
| Current Payables | 151,300 |
| Golder Associates Ltd. & related work: | |
| Third party review - Dam Safety Inspection | 15,000 |
| Klondike – Fuel & supplies to place rip rap | 30,000 |
| Golder – Construction supervision | 31,500 |
| Golder – Project management Phase 2 | 7,000 |
| Golder – Dam break & inundation study | 22,800 |
| Golder – Dam foundation review | 25,000 |
| Golder – Water balance adequacy | 10,900 |
| Golder – Filter adequacy | 10,900 |
| Property payment | 25,000 |
| Property report | 10,000 |
| Private placement commissions | 54,300 |
| 605,000 |
Current payables include six months management fees outstanding to a director totaling $12,000.
All securities issued are subject to a four month hold period expiring October 3, 2016.
About Klondike Silver Corp.
Klondike Silver Corp. has assembled a portfolio of silver exploration properties throughout Canada, most notably, in the historic Slocan Mining District, southeastern British Columbia. This camp has produced silver since the first discoveries in the late 1800s. Klondike Silver is the primary land-holder controlling a majority of the camp and the permitted, 100% owned “Sandon Milling Complex” which is ready for future production. In this land package there are approximately 150 past producing mines. Klondike views the Carnation zone commonly referred to as the “Silver Mile” in the western end of the Silvana claim property, as the primary exploration target.
For additional information please visit the company website www.klondikesilver.com.
CONTACT INFORMATION
Corporate Inquiries:
Dale Dobson: (604) 682-2928 Email: [email protected]
On Behalf of the Board of Directors
Klondike Silver Corp.
"Thomas Kennedy"
Thomas Kennedy CEO, President and Director
This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Klondike Silver Corp. which may cause actual results, performance or achievements of Klondike Silver Corp. to be materially different from the results, performance or expectation implied by these forward looking statements.
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.