Re: News - Thursday, March 12, 2009
Title: Klondex Arranges Non-Brokered Private Placement
Vancouver, British Columbia - March 12, 2009 - Klondex Mines Ltd. (TSX: KDX) announced today that it has arranged a non-brokered private placement of up to 1,500,000 units (the "Units") at a price of CDN $0.60 per unit for gross proceeds of CDN $900,000. Each Unit will consist of one common share and one share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the Company at a price of CDN $0.90 for a period for 12 months after closing. The warrants will be subject to a 30-day early expiration if the stock closes on the Toronto Stock Exchange, for a period of 20 consecutive trading days, at a price of CDN $1.30 or greater. A 5% commission will apply to the portion of the financing attributable to authorized agents. The private placement is subject to exchange acceptance.
William Solloway, Klondex's President, commented, "Given depressed valuations currently being afforded gold companies such as Klondex, our Board elected to pursue a relatively modest financing at this time. At the same time, we are actively working on the update to our NI 43-101-compliant indicated gold resource which we expect by the end of March. We also continue to pursue and evaluate financing and/or partner opportunities that could provide additional capital - on more favorable terms - to finance accelerated development at Fire Creek."
About Klondex Mines:
Klondex Mines Ltd. is a gold exploration company focused on the development and expansion of its high-grade Fire Creek deposit in Nevada, covering 10,708 acres of fee and lease land 100% owned by Klondex. In September 2006 Klondex defined an Indicated Mineral Resource at Fire Creek estimated at 1,636,554 tonnes grading 19.88 grams per tonne (0.576 oz/ton) containing 1,045,729 ounces of gold in two separate mineral zones. The Fire Creek deposit is classified as a "bonanza" grade epithermal gold deposit characterized by high-grade drill intervals including 1.52 meters grading 411 grams per tonne in hole FC0417. Klondex is in the process of updating its NI 43-101 Compliant Indicated Mineral Resource to reflect data from the past two years of drilling; the update is expected by the end of Q1 2009.
Fire Creek is located in the Battle Mountain-Eureka Trend in the Northern Nevada Rift, in North Central Nevada, an area of prolific gold production. The Company was founded over 30 years ago, and its property portfolio consists of four gold exploration projects, all in Nevada. Eighty percent of Klondex' known resource is on private land. For more information, please visit www.klondexmines.com.
ON BEHALF OF KLONDEX MINES LTD.
"William J. Solloway"
President
# # #Investor Contact:David Collins
Jaffoni & Collins Incorporated
KDX@jcir.com(212) 835-8500
Copyright � 2009 KLONDEX MINES LIMITED (KDX) All rights reserved. For more information visit our website at
http://www.klondexmines.com/ or send email to
info@klondexmines.com ..
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Klondex Mines Ltd
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DEVELOPMENT STAGE |
CODE : KDX.TO |
ISIN : CA4986961031 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Klondex Mines is a gold and silver development stage company based in Canada. Klondex Mines holds various exploration projects in USA. Its main asset in development is FIRE CREEK in USA and its main exploration properties are MAGGIE CREEK, REEF, HOT SPRINGS POINT, CORRAL CANYON and SWALES MOUNTAIN in USA. Klondex Mines is listed in Canada and in United States of America. Its market capitalisation is CA$ 543.8 millions as of today (US$ 414.3 millions, € 354.6 millions). Its stock quote reached its lowest recent point on December 08, 2000 at CA$ 0.06, and its highest recent level on November 04, 2016 at CA$ 7.95. Klondex Mines has 177 130 000 shares outstanding. |