New Klondike Exploration Ltd.

News Detail

New Klondike Closes $50,000 Private Placement

Date : Jul 29, 2014
New Klondike Exploration Ltd. (TSXV: NK) (“New Klondike or the Company”) is pleased to announce that it has closed a non-brokered private placement (the “Closing”) of 1,000,000 units of securities of the Company (each a “Unit”) at a price of $0.05 per Unit for gross proceeds of $50,000.
Each Unit consists of one common share in the capital of the Company (each, a “Common Share”) and one Common Share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (each, a “Warrant Share”) at an exercise price of $0.08 per Warrant Share, at any time before the date that is 12 months from the date of issuance of the Warrant and thereafter, at an exercise price of $0.12 per Warrant Share, at any time before 5:00 p.m. (Toronto time) on the date that is 24 months from the date of issuance of the Warrant.
The proceeds from the sale of the Units will be used towards funding a reconnaissance scale geological mapping and sampling program and a geo-referencing program on the Company’s Goldstorm Project, for property maintenance costs, for asset acquisition investigations and for general corporate purposes.
Subsequent to the Closing, New Klondike has 19,622,845 Common Shares issued and outstanding. The Common Shares issued in connection with the Private Placement are subject to a four month hold period expiring on November 30, 2014. Two directors of the Company acquired 300,000 Units in the private placement. The directors and officers of New Klondike, as a group, now hold 23.3% of the Company’s issued Common Shares.
Goldstorm Project
The Goldstorm Project claims cover a large area, in excess of 230 square kilometres, within the southeastern part of the Eagle-Wabigoon-Manitou Lakes Greenstone Belt. Five regional scale structures and associated gold mineralization have been identified within or passing through the project boundaries. These include more than 45 kilometres of major fault zones and a 12 to 15 kilometre long band of Timiskaming-type sedimentary rocks that rest unconformably on mafic volcanic and ultramafic to felsic intrusive rocks. Maps and figures depicting the location and geology of the Goldstorm Project have been compiled in a presentation titled ‘Goldstorm Project-Northwestern Ontario’ available on the Company’s website.
About New Klondike
New Klondike is an Ontario focused mineral exploration and development company with a primary objective of exploring for and developing base and precious metal deposits on its Goldstorm Project. The Company presently has 19,622,845 common shares issued and outstanding. For further information about New Klondike, please visit our website, or contact Michael Coulter, President at 416-368-3332 or by email:
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Forward-Looking Information
This news release contains certain “forward-looking information”. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, statements relating to the Company’s expected use of the proceeds, are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the failure of the Company to spend the proceeds of the private placement as indicated herein and general business and economic uncertainties.
Any forward-looking statement speaks only as at the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.