Klondike Gold Corp has announced plans to raise up to C$3.5 million via a private placing to continue advancing its Yukon properties and for general working capital.
The financing will comprise a flow-through placement and a non-flow-through placement.
In the former, explorer Klondike will sell shares at C$0.20 per flow-through unit with each unit consisting of one share and one-half of one share purchase warrant.
READ: Klondike Gold says drilling in Yukon has extended Lone Star Zone mineralization 250 metres east
The latter will consist of the sale of units at C$0.175 each, with each unit comprising one share and one-half of one share purchase warrant.
Each warrant will entitle the holder to buy one share for C$0.25 each for two years from closing.
The financing may close in tranches and all securities issued are subject to TSX Venture Exchange approval and will be subject to a four-month statutory hold period.
On September 27 this year, the company reported encouraging drill results from the Lone Star Zone at its 586 square kilometers (sq km) Klondike District project in Yukon as it works towards a maiden resource.
The results came from this year's Phase 2a diamond drilling at the Lone Star Zone, in which 12 holes for 1,222 metres (m) were sunk in July.
The work has shown that mineralization continues at least 250 meters eastward beyond the currently defined Lone Star Zone gold mineralization model shell and also continues downslope, Klondike had said.
Contact the author at giles@proactiveinevstors.com