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Re: News - Monday, June 08, 2009
Klondex Responds to Unsolicited Acquisition Offer from Silvercorp
Metals
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Plans to Review Offer in Context of Other Dialogues Already in Process
Vancouver, British Columbia -- June 8, 2009 - Klondex Mines Ltd. (TSX:
KDX) announced today Silvercorp Metals Inc. (TSX: SVN; NYSE Amex: SVM)
has launched an unsolicited offer to acquire all of the outstanding
shares of Klondex for 0.5 of a common share of Silvercorp for each
share of Klondex. Klondex was only made aware of Silvercorp's
intentions to make an offer late in the evening on Friday, June 5,
2009.
In its NI 43-101 update on March 31, 2009, Klondex defined an Indicated
Mineral Resource estimated at 5,043,033 metric tons averaging 10.11
grams per metric ton (gpt) for 1,639,822 ounces of gold equivalent and
an Inferred Mineral Resource Estimated at 1,833,423 metric tons grading
8.63 gpt for 508,799 ounces of gold equivalent.
For the past several months Klondex has been involved in a range of
active discussions with prospective gold industry and financial
partners regarding possible funding for the planned underground and
bulk sampling program on its high-grade Fire Creek deposit in North
Central Nevada. Consistent with these existing discussions as well as
its obligation and focus on delivering shareholder value, Klondex's
Board plans to consider Silvercorp's offer and its potential impact on
the interests of Klondex's shareholders and other stakeholders.
Klondex's Board of Directors remains committed to delivering value for
shareholders over the long term and believes Klondex's strategy,
accomplishments and efficient use of capital clearly demonstrate this.
The Klondex Board will convene promptly to continue its deliberations
and review the Silvercorp offer.
William Solloway, President of Klondex, stated: "We are pleased that
the industry has begun to recognize the substantial value that we have
built at Fire Creek but are surprised by the haste of Silvercorp in
making this unilateral bid for our prized assets. We have come too far
in developing our high-grade resource at Fire Creek to make any hasty
decisions regarding the best path forward. Securing the required
capital to pursue our underground program is our primary focus, and we
have been looking to achieve this goal on the best possible terms and
with the least possible dilution to our shareholders."
Klondex recommends that its shareholders defer making any decision
until the Board has had an opportunity to fully review the offer and to
make a formal recommendation on its merits. Shareholders will be
notified by the Board through a news release and circular in accordance
with applicable securities laws.
As of June 5, 2009, Klondex had 26,719,804 shares currently issued and
outstanding.
About Klondex Mines:
Klondex Mines Ltd. is a gold exploration company focused on the
development and expansion of its 100%-owned, high-grade Fire Creek
deposit in Nevada which consists of 10,708 acres of fee and lease land.
In March 2009 Klondex defined an Indicated Mineral Resource at Fire
Creek estimated at 5,043,033 tonnes grading 10.11 grams per tonne
containing 1,639,822 ounces of gold. 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.
Fire Creek is located in North Central Nevada, an area of prolific gold
production, at the intersection of the Battle Mountain-Eureka Trend and
the Northern Nevada Rift. The Company was founded over 35 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 Solloway"
President
"Bob Sibthorpe"
Director
Investor Contact:
David Collins, Ratula Roy Velez
Jaffoni & Collins Incorporated
KDX@jcir.com
(212) 835-8500
Cautionary Statement:
This news release may contain forward-looking statements. Actual
results may differ materially from those indicated by such statements.
All statements, other than statements of historical fact, included in
this news release, are forward looking statements that involve various
risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements.
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Copyright (c) 2009 KLONDEX MINES LIMITED (KDX) All rights reserved.
For more information visit our website at http://www.klondexmines.com/
or send mailto: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. |