VANCOUVER, British Columbia--(BUSINESS WIRE)--
Klondike Gold Corp. (TSX.V:KG) (“Klondike Gold” or the “Company”)
announces that it has entered into an agreement with the shareholders of
46799 Yukon Inc., a private company, to acquire all of the outstanding
shares of 46799 Yukon Inc. in consideration for the issuance of
6,435,000 common shares of the Company at a deemed price of $0.20 per
share. 46799 Yukon Inc. is the holder of the other 50% interest in the
joint venture on the Company's Indian River Property located in the
Yukon Territory. The shareholders of 46799 Yukon Inc., have provided
funding of $1,287,000 to advance this property to date and are vending
in their interests for their out of pocket costs. Upon completion of the
acquisition, the Company will hold an undivided 100% interest in the
property subject to an existing third party 5% royalty on production of
gold or other minerals.
The acquisition is subject to the approval of the TSX Venture Exchange.
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp., is a Canadian
exploration company with offices in Vancouver, British Columbia, and
Dawson City, Yukon. The Company is focused on the development of its
Yukon gold properties, and also holds a large portfolio of gold and base
metal projects in southeastern British Columbia.
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
Certain statements in this release are forward-looking statements,
which reflect the expectations of management regarding the acquisition
of the shares of 46799 Yukon Inc. and the combination of the companies.
Forward-looking statements consist of statements that are not purely
historical, including any statements regarding beliefs, plans,
expectations or intentions regarding the future, and include statements
regarding: (a) the acquisition of the remaining of the issued and
outstanding shares of 46799 by Klondike Gold, and (b) the receipt of
approval from the TSX Venture Exchange for the acquisition of the shares
of 46799. Such statements are subject to risks and uncertainties that
may cause actual results, performance or developments to differ
materially from those contained in the statements, including: (1) TSX
Venture Exchange approval is not obtained for the acquisition of the
shares or the closing of the transaction, (2) the inherent uncertainties
and speculative nature associated with the exploration for gold
mineralization, including the actual results of current exploration
activities,changes in project parameters as plans continue to be
refined, failure of equipment or processes to operate as anticipated,
accidents or other risks of the mining industry, (3) a decrease in the
demand for and/or a decrease in the price for gold, (4) any number of
events or causes which may delay or cease exploration and development of
the Company’s property interests, such as environmental liabilities,
weather, mechanical failures, safety concerns and labour problems, (5)
the risk that the Company does not execute its business plan, (6)
inability to retain key employees, (7) inability to finance operations
and growth, (8) an extended downturn in general economic conditions in
North America and internationally, (9) an increase in the number of
competitors with larger resources, and (10) other factors beyond the
Company’s control. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if they do
occur, what benefits the Company will obtain from them. These
forward-looking statements reflect management’s current views and are
based on certain expectations, estimates and assumptions which may prove
to be incorrect. These forward-looking statements are made as of the
date of this news release and the Company assumes no obligation to
update these forward-looking statements, or to update the reasons why
actual results differed from those projected in the forward-looking
statements. Additional information about these and other assumptions,
risks and uncertainties are set out in the “Risks and Uncertainties”
section in the Company’s MD&A filed with Canadian security regulators at www.sedar.com.
Klondike Gold Corp.
Peter Tallman, 604-559-4440
Source: Klondike Gold Corp.