New Klondike increases financing to $350,000

Oct 8, 2013

NEW KLONDIKE REVISES TERMS OF PRIVATE PLACEMENT OFFERING

New Klondike Exploration Ltd. has revised the terms for its proposed private placement units offering announced on Sept. 25, 2013. The offering has been increased to a maximum of $350,000 in gross proceeds and the terms of the flow-through units being offered have been amended as described below. Proceeds from the offering will be used to finance a work program consisting of detailed geological mapping and systematic rock sampling of the Katisha Lake gold zones on the company’s Goldstorm project near Dryden, Ont., including a shallow drilling program to test these structures. The program will follow up encouraging gold assays recently received from reconnaissance scale surface sampling results and disclosed in New Klondike’s press release on Sept. 25, 2013.

Private placement offering

The revised non-brokered private placement offering of units to qualified investors will consist of up to seven million units of securities of the company at a price of five cents per unit, for aggregate gross proceeds of up to $350,000. Four million units are being offered on a flow-through basis and three million units on a non-flow-through basis, 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 and one-half of one flow-through common share purchase warrant. Each FT warrant entitles the holder to acquire a flow-through common share at a price of eight cents for a period of 12 months from the closing date and thereafter at a price of 12 cents for the succeeding 12 months and expires 24 months from the closing date.

Each non-flow-through unit will consist of one common share and a warrant. Each warrant will entitle the holder to acquire one additional common share at a price of eight cents for a period of 12 months from the date of closing of the offering and thereafter at a price of 12 cents 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 October. 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 finance the surface exploration and drilling program on the Goldstorm project described above, for property maintenance costs and for general corporate purposes.

The company will pay a finder’s fee to certain eligible persons for subscriptions to the offering 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 per cent of the gross proceeds of any units acquired by investors introduced to the company by such finders and will issue to such finders, warrants equal to 8 per cent 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 five cents for a period of 12 months from the date of closing of the offering.

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.

http://www.newklondike.com/news-newsreleases/2013