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Klondex Mines completes $26.3mln financing

Last updated: 20:59 10 Sep 2015 BST, First published: 01:59 11 Sep 2015 BST

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Klondex Mines plans to use $23.2mln of the net proceeds from the offering towards the repayment of the company's currently outstanding senior secured notes.

Klondex Mines (TSE:KDX, OTCMKTS:KLNDF), a junior gold and silver mining company, has completed a previously announced bought deal offering, rasing gross proceeds of C$26.3mln

Under the offering, the Vancouver, British Columbia-based company issued 7.4mln common shares at a price of C$3.55 per share.

The offering was underwritten by a syndicate led by GMP Securities L.P. and including Canaccord Genuity, Clarus Securities, Dundee Securities, Mackie Research Capital, M Partners, RBC Dominion Securities, and Haywood Securities.

The company plans to use $23.2mln of the net proceeds towards the repayment of the company's currently outstanding senior secured notes.

The remainder is to be used for general working capital purposes, it said.

Klondex has 100% interests in two producing mineral properties: the Fire Creek project and the Midas mine and ore milling facility, both of which are located in Nevada, USA.

The company’s milling and processing facilities, which are located at Midas, process mineralized material from both Midas and Fire Creek. Fire Creek is located 100 miles south of Midas.

The company’s US-listed shares rose 1.6% to $2.54 at 10:18 a.m. in New York. The stock has rallied 50% this year.