Klondike Gold Corp. (TSX-V:KG) said it has closed the second tranche of its non-brokered private placement financing, raising an aggregate of $352,400, of which $24,900 was flow-through funds.
In closing the second tranche, the company issued one million non-flow-through units at a price of 10 cents per unit, with each unit comprising one common share and one share purchase warrant. A total of one million share purchase warrants were issued in connection with the second tranche, exercisable at a price of 20 cents per share until January 24, 2025.
The company said it intends to use the proceeds from the financing to continue exploration and development of the company's Yukon properties, as well as for general working capital.
READ: Klondike Gold eyes doubling gold resource and identifying new discoveries at its Klondike District Gold Project in 2023
All securities issued in connection with the second tranche are subject to a four-month-and-one-day statutory hold period expiring on May 25, 2023, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
Two insiders of the company participated in the financing and acquired an aggregate of 2.9 million units. The purchases by these insiders constitute related party transactions within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions.
The company also announced that under its incentive stock option plan, 3.9 million stock options have been granted to certain directors, officers, employees and consultants of the company. The stock options are exercisable at a price of 10 cents per share for a period of five years, subject to regulatory approval.
Klondike Gold is a Vancouver-based gold exploration company advancing its 100%-owned Klondike district gold project, located at Dawson City, Yukon, one of the top mining jurisdictions in the world. The Klondike district gold project targets gold associated with district-scale orogenic faults along the 55-kilometre length of the famous Klondike goldfields placer district.
Multi-kilometre gold mineralization has been identified at both the Lone Star zone and Stander zone, among other targets. The company has identified an initial mineral resource of 469,000 indicated gold ounces and 112,000 inferred gold ounces, a milestone first for the Klondike district.
The company is focused on exploration and development of its 586-square kilometre property accessible by scheduled airline and government-maintained roads located on the outskirts of Dawson City, Yukon, within the Tr'ondek Hwech'in First Nation traditional territory.
Contact the author at jon.hopkins@proactiveinvestors.com