Klondike Gold Corp. (TSX-V:KG) said that, further to its news release of September 30, 2021, it has closed the first tranche of its non-brokered private placement financing, raising $2,242,851.25 of which $1,935,000 is flow-through funds.
The company intends to use the proceeds from the financing to continue exploration and development of its Yukon properties, as well as for general working capital.
In closing the first tranche, the company issued 9,675,000 flow-through units at the price of $0.20 per unit, comprising of 9,675,000 common shares which are "flow-through" shares for Canadian income tax purposes and 4,837,500 warrants. The company also issued 1,759,150 non-flow-through units at a price of $0.175 per unit, comprising of 1,759,150 common shares and 879,575 warrants.
All warrants issued in the first tranche of the financing are exercisable at a price of $0.25 per share until October 22, 2023.
Klondike Gold said it anticipates closing the balance of the financing in the coming weeks.
READ: Klondike Gold says drilling in Yukon has extended Lone Star Zone mineralization 250 metres east
All securities issued in connection with the first tranche are subject to a four-month and one-day statutory hold period expiring on February 23, 2022, in accordance with applicable securities laws and the policies of the Toronto Venture Exchange.
Klondike Gold is a Vancouver-based gold exploration company advancing its 100%-owned Klondike District Gold Project located at Dawson City, Yukon Territory, 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-kilometer length of the famous Klondike Goldfields placer district.
To date, multi-kilometer gold mineralization has been identified at both the Lone Star Zone and Stander Zone, among other targets. The company is focused on the exploration and development of its 586 square kilometer property accessible by scheduled airline and government-maintained roads located on the outskirts of Dawson City within the Tr'ondëk Hwëch'in First Nation traditional territory.
Contact the author at jon.hopkins@proactiveinvestors.com