Klondike Gold Corp said that, further to its news release of October 25, 2021, it has closed the second tranche of a non-brokered private placement raising total aggregate proceeds of $3,516,726.55 of which $2,395,000 are flow-through funds.
The company intends to use the proceeds from the private placement to continue exploration and development of its Yukon properties, as well as for general working capital.
In a statement, Peter Tallman, president and CEO of Klondike Gold said: "I would like to acknowledge and thank the Company's shareholders for their continued financial support and long-term confidence. The Company is well funded for its operations through 2022."
READ: Klondike Gold closes first tranche of non-brokered private placement financing, raising $2,242,851.25
In closing the second tranche, the company issued 2,300,000 flow-through units at the price of $0.20 per unit, comprising of 2,300,000 common shares which are "flow through" shares for Canadian income tax purposes and 1,150,000 warrants.
It further issued 4,650,716 non-flow-through units at a price of $0.175 per unit, comprising of 4,650,716 common shares and 2,325,358 warrants.
In connection with the completion of the financing, the company paid finder's fees totalling $129,832.58 and has issued 661,329 warrants.
All warrants issued in the second tranche and the compensation warrants are exercisable at a price of $0.25 per share until November 17, 2023.
All securities being issued are subject to TSX Venture Exchange approval and all securities will be subject to a four month and one day statutory hold period expiring on March 18, 2022.
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 exploration and development of its 586 square kilometer property accessible by scheduled airline and government-maintained roads located on the outskirts of Dawson City, Yukon Territory within the Tr'ondëk Hwëch'in First Nation traditional territory.
Contact the author at jon.hopkins@proactiveinvestors.com