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Klondex to Vigorously Defend Against Baseless Paramount Suit and
to File Counterclaim for US $2.85 Million Reverse Break Fee Plus
Damages
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Vancouver, British Columbia -- October 6, 2009 - Klondex Mines Ltd.
(TSX: KDX) ("Klondex") announced today that is has been made aware of a
Writ of Summons and Statement of Claim filed in the Supreme Court of
British Columbia, Canada by Paramount Gold and Silver Corp. for alleged
claims relating to Klondex's recent termination of a letter agreement
for the proposed business combination of Klondex and Paramount.
Klondex has not yet been served with a copy of the writ and claim, nor
has Paramount made the demand for the break fee described in its writ.
Klondex asserts unequivocally that the letter agreement was terminated
solely for the reasons set out in Klondex's September 24, 2009 news
release. Klondex intends to mount an aggressive, vigorous defense of
Paramount's claims and pursue a counterclaim for the reverse break free
of US $2.85 million plus damages.
William Solloway commented, "Paramount is waging a very aggressive
campaign to defame Klondex, to further misinform investors and steer
them away from the hard facts at the base of our very difficult
decision to terminate the Paramount merger. We weighed our position
very carefully, but we could come to no other decision than to
terminate the Letter Agreement, knowing full well the short-term
consequences this decision would have on our share price and the
potential for litigation but that our decision remains in the best
long-term interests of our shareholders."
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. In March 2009 Klondex defined and disclosed in a
technical report entitled "Updated Report on the Fire Creek Gold
Property Lander Co., Nevada" dated March 30, 2009, an Indicated Mineral
Resource at Fire Creek estimated at 5,043,033 tonnes grading 10.11
grams per metric ton (gpt) containing 1,639,822 ounces of gold
equivalent and an Inferred Mineral Resource Estimated at 1,833,423
tonnes grading 8.63 gpt for 508,799 ounces of gold equivalent.
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. Fire Creek consists of 11,098 acres of fee
land and unpatented mining claims and is classified as a "bonanza"
grade epithermal gold deposit characterized by high-grade drill
intervals including 1.52 meters grading 411 grams (13 oz.) per metric
ton in hole FC0417.
Klondex was founded over 35 years ago and has four gold exploration
projects, all in Nevada. Richard Kern (P.Geo), Project Manager, of
Reno, Nevada, is the Company's qualified person on the project as
required under NI 43-101and has reviewed the technical information
contained in this press release. For more information, please visit
www.klondexmines.com.
ON BEHALF OF KLONDEX MINES LTD.
"William Solloway"
President
"Bob Sibthorpe"
Director
Contact:
David Collins, Ratula Roy
Jaffoni & Collins Incorporated
KDX@jcir.com
(212) 835-8500
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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. |