Victory must incur a minimum in expenditures for exploration and development work on the property of $3,750,000 as follows:
i. $1,000,000 of expenditures on or before the first anniversary that Regulatory Approval of this Agreement was received; andii. A cumulative total of $2,250,000 of expenditures on or before the second anniversary that Regulatory Approval of this Agreement was received; andiii.A cumulative total of $3,750,000 of expenditures on or before the third anniversary that Regulatory Approval of this Agreement was received.
Under the Agreement, Victory will also be entitled to a royalty payment equal to 50% of the net profit received from the sale of any newly discovered resources should exploration prove successful. Any cash payments due to Victory will be credited toward the Expenditure requirements under the Agreement until the option has been satisfied. All agreements will be subject to TSX Venture Exchange approval.
If Victory exercises the option, Klondike agrees that it will grant to Victory a further twenty-five percent (25%) interest in and to the property on terms and conditions to be agreed upon between the parties and subject to a further option agreement between the parties.
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 Mining Complex". The Company owns the past-producing Silvana, Wonderful, and Hinckley Mines and several other properties with significant exploration potential.
For additional information please visit the company website www.klondikesilver.com.
On Behalf of the Board of Directors
Klondike Silver Corp.
Richard Hughes, President and Director
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 mine-life 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.
"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."
Contacts:
Klondike Silver Corp.
Mark Luchinski
Corporate Inquiries
(604) 685-2222
(604) 685-3764 (FAX)
mark.luchinski@klondikesilver.com
Klondike Silver Corp.
Alan Campbell
(604) 685-2222
(604) 685-3764 (FAX)
acampbell@klondikesilver.com
www.klondikesilver.com
