Klondike Silver Corp. takes first step towards resuming Production Receives TSX Venture Exchange approval for Tranche 2 and Grants Incentive Stock Options
#711-675 WEST HASTINGS STREET VANCOUVER, B.C. CANADA V6B 1N2 TELEPHONE: 604-685-2222 FAX: 604-685-3764 WWW.KLONDIKESILVER.COM TSX-Venture: KS FSE: K1SN
Klondike Silver Corp. takes first step towards resuming Production Receives TSX Venture Exchange approval for Tranche 2 and Grants Incentive Stock Options
June 3rd 2014: Klondike Silver Corp. (TSX-v symbol: KS) (Klondike) at the requests of the Ministry of Energy and Mines (MEM) is moving towards retaining a qualified professional engineer to evaluate the mine site facilities and to complete the outstanding reporting requirements as outlined after a site inspection on July 23rd 2013. MEM endorses Klondike’s efforts to move forward in fulfilling the outstanding inspection orders at the Sandon Mining Complex.
Klondike will continue to work closely with MEM, as it always has, to ensure the operations continue to run in a first class manner. Completion of these engineering reports is standard operational conduct and necessary to maintain our good standing with MEM.
The selected Engineering Firm will have the duties to complete inspection reports related to the Underground Mining Structure’s (UMS’s) and Tailings Storage Facilities (TSF’s). This work will include an update to the current Operation, Maintenance and Surveillance (OMS) manual; an update to the Emergency Preparedness and Response Plan (EPRP); completion of the Annual Dam Safety Inspection report; and appropriate design and construction of armouring along Carpenter Creek to protect these structures.
Request for bids for the Engineering program have been submitted to leading Engineering Firms. Klondike anticipates awarding of a contract within the next few weeks with the commencement of work to follow shortly after.
TSX Venture Exchange Grants Approval for Tranche 2
The TSX Venture Exchange has granted approval for the second and final tranche of the nonbrokered Private Placement announced March 4th and April 29th 2014. Klondike has issued a total of 2,590,000 common shares in this final tranche for total proceeds of $129,500.
Klondike issued 2,590,000 non-flow-through (NFT) units. Each unit consists of one common share and one full non-transferable share purchase warrant. One whole warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.07 per share for four years from the date of closing.
The following insiders participated in the private placement;
Hastings Management Corp. (Richard Hughes) 500,000 NFT units; Mark Luchinski 200,000 NFT units.
The units are subject to a hold period of four months. The proceeds of the private placement will be used for exploration activities and working capital.
Klondike Silver Grants Options
Klondike announces that pursuant to its stock option plan, the Company has granted incentive stock options to its directors, officers, consultants, and employees to purchase in the total of 850,000 common shares in the capital stock of the company, subject to regulatory approval, exercisable for a period of five years, at a price of $0.07 per share.
About Klondike Silver Corp.
Klondike Silver Corp. has assembled a quality portfolio of silver properties throughout Canada, most notably, in the historic Slocan Mining District southeastern British Columbia. This historic camp has produced more than 24 million ounces of silver since the first discoveries in the late 1800s. Klondike Silver is the dominant land-holder controlling a majority of the historic camp and the fully permitted, 100% owned “Sandon Milling Complex”. The Company owns ground covering approximately 150 past producing mines and extensive underground structures. The past-producing Silvana, Wonderful, Hinckley Mines, Payne, Rambler, Van Roi/Hewitt, Vulture, Argenta, Jackson Basin, and the Carnation and several other land packages with significant mining potential are all capable of being put back into production at some level, whether it be through the exclusive efforts of Klondike or a joint effort with a partner. Currently Klondike views the Carnation land package and a potential discovery in the “Silver Mile” as its most significant asset.
For additional information please visit the company website www.klondikesilver.com
CONTACT INFORMATION
Corporate Inquiries:
Mark Luchinski: (604) 336-7766 Email: [email protected]
On Behalf of the Board of Directors
Klondike Silver Corp.
"Richard Hughes"
Richard Hughes President and Director
“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.”
Cautionary note:
This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. The production rate and minelife projections have been made without support of a feasibility study, there is no certainty the proposed operations will be economically viable. 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, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.