Vancouver, British Columbia (FSCwire) - Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) announces that it has received payment from Rise Resources Inc. (“Rise”) for the acquisition by Rise of 100% of a portfolio of seven of Klondike’s British Columbia properties totalling 150 claims covering 128 square kilometers located in the southeastern part of the province (see News Release May 31, 2016). The seven properties are Red Point, Clubine, Ron Gold, Panda Irishman, Cruz-Midway, Thea, and Quartz Mountain.
Payment received from Rise Resources includes $50,000 in cash, and payment of 1,500,000 Rise shares and 1,500,000 Rise warrants to purchase 1,500,000 shares with an exercise price of $0.227 per warrant share until July 13, 2018 (collectively the “First Closing”). The common shares now owned by Klondike represent 4.56% of Rise’s issued and outstanding on closing.
To complete the acquisition of 100% of the properties, Rise Resources must make a further payment upon the one year anniversary of First Closing of $150,000 in cash, and payment of 2,000,000 Rise shares and 1,000,000 Rise warrants to purchase 1,000,000 shares for a period of 24 months (collectively the “Second Closing”).
Klondike Gold will retain a 2.0% NSR and Rise will have the right to purchase 50% of this royalty for $1.0 million at any time after the First Closing.
Peter Tallman, President and CEO of Klondike states “Klondike has divested its interests in southeastern British Columbia in return for a meaningful share position in Rise Resources while retaining a royalty interest. This strategy allows Klondike Gold shareholders significant leverage to a portfolio of highly prospective British Columbia gold and base metal properties while keeping the Company’s financial and exploration focus on its core Yukon assets. We welcome Rise Resources as our partner in realizing value from these properties for both our Companies”.
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia, and Dawson City, Yukon Territory. The company is focused on exploration and development of its Yukon gold projects, accessible by government maintained roads located on the outskirts of Dawson City, YT, covering 308 square kilometers of hard rock and 20 square kilometers of placer claims including “McKinnon Creek” featured on the Discovery Channel show “Gold Rush”.
On behalf of Klondike Gold Corp.
President and CEO
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.
Disclaimer for Forward-Looking Information
“This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Klondike in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Klondike’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Klondike disclaims any obligation to update or revise any forward-looking information or statements except as may be required.”