NEW KLONDIKE ANNOUNCES $400,000 PROPOSED PRIVATE PLACEMENT OFFERING
New Klondike Exploration Ltd. (TSX VENTURE:NK) (“New Klondike” or the “Company”) is pleased to announce a proposed non-brokered private placement offering of units (the “Offering”) to qualified investors. The Offering will consist of up to 8,000,000 units of securities of the Company (each, a “Unit”) at a price of $0.05 per Unit, for aggregate gross proceeds of up to $400,000. 5,000,000 Units are being offered on a flow-through basis (each, a “Flow-Through Unit”) and 3,000,000 Units on a non-flow-through basis (each, a “Non-Flow-Through Unit”), or in such proportion and aggregate issue size as the Company may determine.
Each Flow-Through Unit will consist of one flow-through common share (each, a “Flow-Through Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”).
Each Non-Flow-Through Unit will consist of one common share (each, a “Common Share”) and a Warrant.
Each Warrant will entitle the holder to acquire one additional Common Share at a price of $0.10 for a period of 12 months from the date of closing of the Offering and thereafter at a price of $0.15 for the succeeding 12 months and expiring 24 months from the date of closing of the Offering.
The Offering is subject to receipt of all regulatory or other approvals that may be necessary in order to complete the transactions contemplated therein and is expected to close during mid-May. All securities issued pursuant to the Offering will be subject to a four-month statutory hold period.
Proceeds of the Offering will be used to fund an initial drilling and surface exploration program on the Company’s Goldstorm Project in Ontario, for property maintenance costs and for general corporate purposes.
The Company will pay a finder’s fee to certain eligible persons (each, a “Finder”) for subscriptions to the private placement completed by qualified investors who have been introduced by such Finders. The Company will pay a cash finder’s fee equal to, in the aggregate, 8% of the gross proceeds of any Units acquired by investors introduced to the Company by such Finders and will issue to such Finders, warrants (each, a “Finder’s Warrant”) equal to 8% of the aggregate number of Units sold under the Offering by such Finder. Each Finder’s Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.05 for a period of 12 months from the date of closing of the Offering.
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.
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 metasedimentary rocks that rest unconformably on mafic metavolcanic 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, or by clicking here: http://media3.marketwire.com/docs/NK%20Final%20presentation%20030213.pdf.
About New Klondike
New Klondike is a mineral exploration and development company focused on the identification and development of base and precious metal deposits on the Goldstorm Project and its other exploration properties in Ontario. The Company presently has 17,342,845 common shares issued and outstanding. For further information about New Klondike please visit our website www.newklondike.com.
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