(TheNewswire)
Vancouver, Canada - TheNewswire - October 15 2020 - Klondike Silver Corp. (the"Company") (TSXV:KS) (OTC:KLSVF) is pleased toannounce the closing of the private placement first announced July 31.The total gross proceeds raised over all three tranches is $1,434,000. The third and final tranche is closing raising gross proceeds of$503,000 through the issuance of 10,060,000 units ("Unit")at a price of $0.05 per each Unit. Each Unit will be comprised of onecommon share and one-half of one share purchase warrant (a"Warrant"). Each whole Warrant is exercisable to purchaseone common share of the Company at a price of $0.10 per share for aperiod of 30 months from the date of closing.
The private placement is subject to TSX Venture Exchange approval andall securities are subject to a four month hold period. Finder's feestotaling $78,000 for all three tranches will be paid in connectionwith the private placement, all in accordance with the policies of theTSX Venture Exchange. The net proceeds will be used for advancingKlondike's Sandon B.C. Silver Zinc Lead project ( drifting and drilling the main veinstructure ), and for general working capital.
In the first tranche a director of the Company purchased 180,000 Unitsof the private placement. In the second tranche an existing insider(10% holder) of the Company purchased 800,000 Units of the privateplacement. The placement to those persons constitutes a "relatedparty transaction" within the meaning of TSX Venture ExchangePolicy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders inSpecial Transactions ("MI 61-101") adopted in thePolicy. The Company has relied on exemptions from the formalvaluation and minority shareholder approval requirements of MI 61-101contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect ofrelated party participation in the placement as neither the fairmarket value (as determined under MI 61-101) of the subject matter of,nor the fair market value of the consideration for, the transaction,insofar as it involved the related parties, exceeded 25% of theCompany's market capitalization (as determined under MI 61-101).
About KlondikeSilver
Klondike's Silvana Mine Silver ZincLead project is located in South EasternB.C. , 138 km north of the Trail B.C. smelter. The Company isactively exploring from underground, the western extension of theSilvana Mine, along the "Main Lode". The "MainLode" is a 9 km vein structure which is the most prolificmineralized structure in the Slocan Mining Camp. There are 13historical mines that are situated along the 9 km vein structure whichhas produced 886,000 kg of silver, 95 million kg of zinc and 117million kg lead so far (source: BC MINFILE).
Additional information can be found on the Company website: www.klondikesilver.com
-------------------------------------------------------------------- |On Behalf of the |Contact Information | |Board of | | |Directors | | |------------------------------------------------------------------| |Klondike Silver Corp. |Corporate Inquiries: | | | | | | | |------------------------------------------------------------------| |"Thomas Kennedy" |Dale Dobson: (604) 682-2928 | |------------------------------------------------------------------| |Thomas Kennedy, B.Comm., J.D.|Email:dale.dobson@klondikesilver.com| |------------------------------------------------------------------| |CEO, Director | | | | | --------------------------------------------------------------------
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
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