======================================================================
Re: News - Tuesday, May 22, 2007
Klondex Mines Expands Board with Appointment of Mining Industry
Executive, Ronald Shorr
======================================================================
Vancouver, British Columbia - May 22, 2007 - Klondex Mines Ltd. (TSX:
KDX) announced today the appointment of Ronald Shorr, CFA to its Board
of Directors. Mr. Shorr has over 30 years of experience in the
precious metals industry. He is President, CEO and a Director of
Maudore Minerals Ltd. (TSX-V: MAO), a gold exploration company with a
high-grade project in the province of Quebec. Mr. Shorr's appointment
expands the board to five members.
William J. Solloway, President of Klondex Mines, commented, "Klondex
has reached critical mass in our exploration and development program,
achieving an Indicated Mineral Resource over 1,000,000 million ounces
of gold last Fall. Now, as we continue exploration drilling and
progress toward underground in-fill drilling and bulk sampling, the
Board felt it prudent to expand our base of industry knowledge and
experience to support and direct our expanded efforts. Ron is an ideal
addition to our Board as he brings a unique combination of precious
metals mining industry experience and investment community experience
and relationships from his work as a top-rated mining industry analyst.
We are honored that Ron shares our vision and excitement for Klondex
and has agreed to join our Board."
Mr. Shorr commented, "I am attracted to Klondex because of the both the
potential and high grade nature of its Fire Creek deposit and other
claims as well as the opportunity to support its accelerating
exploration and development programs. I look forward to working with
management and the Board to realize the inherent value of this
situation for its shareholders."
In addition to his roles at Maudore Minerals, Mr. Shorr is a director
of several companies including Longview Capital Partners Incorporated
(TSX-V: LV), Samba Gold Inc. (TSX-V: SAO) and Tournigan Gold
Corporation (TSX-V: TVC). He has extensive experience on Wall Street
as an "Institutional Investor All American-ranked" senior mining
analyst with Bear Stearns and Morgan Stanley Dean Witter. Shorr is a
Chartered Financial Analyst (CFA) and a graduate of the University of
Michigan. He earned his M.B.A. from Harvard Business School and
completed post-graduate work at Columbia University's Henry Crumb
School of Mines.
In conjunction with Mr. Shorr's appointment, the Board has approved the
grant of 100,000 incentive stock options, exercisable at CDN$2.25 per
share over a five-year period. The options vest in equal installments
over the next four quarters.
About Klondex Mines Ltd.:
Klondex Mines is a gold exploration company focused on the development
of its high-grade Fire Creek deposit where to date the Company has
identified an Indicated Mineral Resource in excess of 1,000,000 ounces
of gold (and some by-product) silver). Fire Creek is located in the
Battle Mountain-Eureka Trend in the Northern Nevada Rift, in North
Central Nevada, a region of prolific gold and silver production. The
Company's property portfolio contains five gold exploration projects,
all in Nevada. For more information, please visit
www.klondexmines.com.
On behalf of Klondex Mines Ltd.
William J. Solloway
President
# # #
Contact:
Steven Hecht, David Collins
Jaffoni & Collins
KDX@jcir.com
(212) 835-8500
======================================================================
Re: News - Tuesday, May 22, 2007
Klondex Mines Adopts Shareholder Rights Plan
======================================================================
- Sets Annual Meeting for July 5, 2007 -
Vancouver, British Columbia - May 22, 2007 - Klondex Mines Ltd. (TSX:
KDX) today announced that its Board of Directors has approved the
adoption of a Shareholder Rights Plan (the "Rights Plan"), subject to
approval of the Company's shareholders at its annual meeting planned
for July 5, 2007. The Rights Plan is being adopted to ensure that, in
the event of a take-over bid being made for common shares of the
Company, all shareholders will receive full and fair value for their
shares and that the Board, on behalf of the Company and all of its
shareholders, will have the time and opportunity to evaluate the bid
and its effects, to seek alternative bidders and to explore, develop
and evaluate other ways of maximizing shareholder value.
The Rights Plan is not being adopted in response to any proposal to
acquire control of Klondex Mines. The Board elected to put such a plan
in place at this time in light of the Company's current market
valuation, the increase in Klondex's Indicated Mineral Resource that
was achieved over the past year, the Company's expectations for its
2007 exploration drilling program as well as its planned underground
development program expected to launch this fall and its bulk sampling
effort targeted to begin in early 2008. In a September 2006 NI 43-101
filing, Klondex reported an Indicated Mineral resource estimated at
1,636,555 tonnes of ore bearing an estimated 1,045,738 ounces of gold.
The Board proposed the adoption of the Rights Plan to protect the
shareholders of the Company from any possible strategies to take
control of the Company without providing full value to the Company's
shareholders. Pursuant to the terms of the Rights Plan, any bid that
meets certain criteria intended to protect the interests of all
shareholders are deemed to be "Permitted Bids." A Permitted Bid must
be made by way of a take-over bid circular prepared in compliance with
applicable securities laws and, in addition to certain other
conditions, must remain open for 60 days. In the event a take-over bid
does not meet the Permitted Bid requirements of the Rights Plan, the
rights issued under the plan will entitle shareholders, other than any
shareholder or shareholders involved in the take-over bid, to purchase
additional common shares of Klondex Mines at a significant discount to
the market price of the common shares at that time.
The Rights Plan has been approved, subject to certain conditions, by
the Toronto Stock Exchange and will be presented for ratification by
the shareholders at the Klondex Mines Annual Meeting to be held on July
5, 2007. If ratified by shareholders, the Rights Plan will have a term
of five years expiring on the date of the Corporation's annual general
meeting in 2012.
About Klondex Mines Ltd.
Klondex Mines is a gold exploration company focused on the development
of its high grade Fire Creek deposit where to date the Company has
identified an Indicated Mineral Resource in excess of 1,000,000 ounces
of gold. Fire Creek is located in the Battle Mountain-Eureka Trend in
the Northern Nevada Rift, in North Central Nevada, an area of
substantial mining activity that has produced in excess of 100 million
ounces of gold. The Company's property portfolio contains five gold
exploration projects, all in Nevada.
At December 31, 2006 Klondex's working capital position was
approximately CDN$9.4 million and 22.5 million shares are issued and
outstanding. Dilution to 26.4 million shares through the exercise of
existing options and warrants would result in an additional CDN$8.2
million in working capital. For more information, please visit
www.klondexmines.com.
This news release includes certain statements that may be deemed
"forward-looking statements." All statements in this release, other
than statements of historical facts, including the likelihood that bulk
sampling will generate significant revenues and the possible results of
future exploration are forward-looking statements. Although the
Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may
differ materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include unsuccessful exploration results,
inability to obtain necessary permits and regulatory approvals, changes
in metals prices, currency fluctuations, changes in the availability of
funding for mineral exploration, unanticipated changes in key
management personnel, unavailability of necessary equipment and
contractors, and general economic conditions. Mining is an inherently
risky business. There is no guarantee that the Company will be able to
carry out its work program or that the results of that work program
will be successful. Accordingly the actual results may differ
materially from those projected in the forward-looking statements. For
more information on the Company and the risks and challenges of its
business, investors should review the Company's filings available at
www.sedar.com
ON BEHALF OF KLONDEX MINES LTD.
"William J. Solloway"
President
"Bob Sibthorpe"
Technical Director
Contact:
David Collins, Steven Hecht
Jaffoni & Collins
KDX@jcir.com
212-835-8500
======================================================================
Copyright (c) 2007 KLONDEX MINES LIMITED (KDX) All rights reserved.
For more information visit our website at http://www.klondexmines.com/
or send mailto:info@klondexmines.com
Message sent on Tue May 22, 2007 at 6:33:22 AM Pacific Time
======================================================================
.
![]()