New Klondike closes $50,000 private placement

Jul 29, 2014

New Klondike Exploration Ltd. has closed a non-brokered private placement of one million units of securities of the company at a price of five cents per unit for gross proceeds of $50,000.

Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at an exercise price of eight cents 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 12 cents per warrant share, at any time before 5 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 toward financing a reconnaissance-scale geological mapping and sampling program, and a georeferencing 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 Nov. 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 per cent 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-kilometre-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.

http://www.newklondike.com/news-newsreleases/2014