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Klondike Gold raises $2.1M in first tranche of private placement

The company is actively exploring its Lone Star gold target in Yukon Territory, Canada

old-time gold prospector
Klondike shares jumped 2.4% to close at $0.21 on Monday

Klondike Gold Corp (CVE:KG) (OTCMKTS:KDKGF), a Canadian exploration company with assets in Yukon Territory, closed a $2.1 million private placement on Monday. 

The company issued approximately 7.8 million flow-through shares at a price of $0.22 and 1.9 million non-flow-through units at $0.20 for gross proceeds totaling about $2.1 million. It anticipates that the second tranche will be completed in the coming weeks, the company said in a statement.

Shares of Klondike jumped 2.4% to close at $0.21 on Monday, and gained 3.5% on the OTC Markets in the US.

READ: Klondike Gold Corp to raise up to C$2.75 million to boost exploration at Yukon projects 

Flow-through shares are a unique financing vehicle for junior mining companies in Canada, giving investors tax incentives for funding resource exploration.

Based in Vancouver, Klondike Gold Corp is focused on exploring and developing its Lone Star Gold project in Yukon, Canada. The asset is a district-scale, 557 square kilometre property at the confluence of Bonanza and Eldorado Creeks.

In addition to the Lode Star zone, Klondike is actively exploring the Nugget zone, where earlier drilling identified near-surface gold intersections of 2.36 g/t over 22.86 metres.

--Contact Angela Harmantas at [email protected]

--Follow her on Twitter @AHarmantas

Quick facts: Klondike Gold Corp.

Price: 0.255 CAD

TSX-V:KG
Market: TSX-V
Market Cap: $28.22 m
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