Klondike Silver Announces Closing of Convertible Debenture Financing
KLONDIKESILVER.com
KS : TSX.V K1SN : FSE
804 – 750 West Pender St. Vancouver, B.C. Canada, V6C 2T7 T: 604.682.2928
KLONDIKE SILVER ANNOUNCES CLOSING OF CONVERTIBLE
DEBENTURE FINANCING
January 16, 2020 - Vancouver, Canada – Klondike Silver Corp. (the “Company”) (TSX.V: KS) is
pleased to announce that the Company has closed its previously announced convertible debenture (the
“Convertible Debenture”) financing with Munday – Maxwell & Gaylene – Association (the “Lender”),
pursuant to which the Lender has agreed to loan, in one or more advances, up to Cdn$2,500,000 to the
Company. The terms of the Convertible Debenture and transaction with the Lender were approved by the
Company’s disinterested shareholders at the Company’s annual general and special meeting held on
December 31, 2019 and accepted by the TSX Venture Exchange (the “Exchange ”) as required by
applicable Exchange rules and policies.
Amendments to the Terms of the Convertible Debenture
Prior to executing the Convertible Debenture, the Company and the Lender agreed to amend the terms of
the Convertible Debenture (as previously disclosed in the Company’s press relea se dated December 23,
2019 (the “ December 23 Press Release”) and the Company’s management information circular dated
November 22, 2019, as amended by the addendum dated December 6, 2019 (the “ Circular”), copies of
which are available for review under the Company’s profile on SEDAR at www.sedar.com) as follows:
• rather than drawing down an initial advance of $1,457,180.74 under the Convertible Debenture to
repay in full the outstanding principal and accrued interest owing to the Lender under certain pre-
existing promissory notes (the “Promissory Notes”), the Company and the Lender have agreed to
restructure the transaction such that the Promissory Notes will be restructured and settled in full
by the Company on the condition that the full amount of the out standing principal and accrued
interest will be rolled -over and treated as an advance under the Convertible Debenture. Proceeds
from any future advances under the Convertible Debenture will be used to advance the
exploration of the Company’s Sandon Silver Lead Zinc project (specifically, underground
drilling) and for general working capital and administrative purposes; and
• the aggregate amount of outstanding principal and accrued interest of $1,457,180.74 owing under
the Promissory Notes that has been settled and restructured pursuant to the Convertible Debenture
will be convertible, in whole or in part, into units (“ Units”) of the Company at a conversion price
of Cdn$0.05 per Unit during the first year of the Convertible Debenture and Cdn$0.10 per Unit
during all subsequent years of the Convertible Debenture and e ach Unit will be comprised of one
(1) common share and one (1) common share purchase warrant (each a, “ Warrant”) of the
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KLONDIKESILVER.com
KS : TSX.V K1SN : FSE
804 – 750 West Pender St. Vancouver, B.C. Canada, V6C 2T7 T: 604.682.2928
Company, with each Warrant being exercisable into one (1) common share of the Company at a
price of $0.05 per share for a period of sixty (60) months from the issue date of the Convertible
Debenture. However, (i) any future advances under the Convertible Debenture will be
convertible, in whole or in part, into Units at a conversion price equal to the then prevailing
market price of the Company’s common shares as of the date on which the Company makes a
request for such additional advance from the Lender; and (ii) the exercise price of the Warrants
will be equal to the then prevailing market price of the Company’s common shares as of the date
on which the Company makes a request for such additional advance from the Lender.
Except for the amendments described above, the principal terms of the Convertible Debenture , as
summarized and described in the December 23 Press Release and the Circular, remain the same and
unchanged.
The Convertible Debenture is subject to a four month and one -day restricted resale period expiring on
May 16, 2020, in accordance with the policies of the TSX Ve nture Exchange and applicable securities
law. All securities issuable under the terms of the Convertible Debenture will similarly be subject to a
four month and one-day restricted resale period.
About Klondike Silver
Klondike’s Silvana Mine Silver Lead Zinc project is located in South Eastern B.C., 138 km north of
the Trail B.C. smelter. The Company is actively exploring from underground, the western extension of
the Silvana Mine, along the “ Main Lode ”. The “Main Lode” is a 9 km structure which is the most
prolific mineralized structure in the Slocan Mining Camp. There are 13 historical mines that are situated
along the 9 km “Main Lode” structure which has produced 886,000 kg of silver, 117 million kg lead and
95 million kg of zinc so far (source: BC MINFILE).
On Behalf of the Board of Directors Contact Information
Klondike Silver Corp. Corporate Inquiries:
"Thomas Kennedy" Dale Dobson: (604) 682-2928
Thomas Kennedy, B.Comm., J.D. Email: [email protected]
CEO, 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 Cor p. 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 lookin g
statements. By their nature, forward looking statements involve risk and uncertainties because they relate to events and
depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, indus try
production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors.
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.