Klondike Silver Increases Land Position in Slocan Silver Camp and Closes Private Placement
June 26 2009 - 11:07AM
Marketwired
Klondike Silver Gold Corp. (TSX VENTURE: KS) (the "Company") is
pleased to report that it has aggressively staked new mineral
properties in and around the Sandon Silver Camp of south-central
British Columbia. The newly expanded land package now encompasses
more than 4,500 hectares and includes 25 past-producing mines and a
fully permitted 100-tonne-per-day flotation mill.
Klondike Silver is by far the dominant landholder in the Slocan
Camp, which has produced more than 24 million ounces of silver plus
by-product base metals since the late 1800s. The Company's holdings
consist of 2,261 hectares of crown-granted mineral claims and
22,852 hectares of mineral claims, with new additions as
follows.
- Corrigan Mine Group: 145 hectares were added adjacent to the
active and promising Jackson Mine claims to cover three
past-producers. The Corrigan Mine was known for its high grades
(16,043.71 g/t silver, 34.1% lead and 2.6% zinc). The others are
the Rio Mine (8,025 g/t silver, 31.1% lead and 6.0% zinc) and the
Silver Bell Mine (5,130 g/t silver and 45.8% lead).
- Hewitt Mine Area: 956 hectares of new ground was staked
adjacent to the Company's 41 crown-granted claims.
- Silverton Creek Area: 951 hectares of new claims were staked,
including the past-producing Jennie Lind, Canadian and Ivanhoe
Mines on Silver Ridge. This area also covers the Iron Mask
silver-lead-zinc-gold showing near the valley bottom.
Klondike Silver's exploration efforts in and around the Sandon
Silver Camp are focused on reviving the most promising historic
mines near the existing mill and exploring a highly prospective
land package focused on five main project areas.
The newly expanded, contiguous land package extends from the
heights of Silver Ridge (Idaho Peak, Selkirk Peak and Sandon Peak)
to the valley bottom at Sandon, and up and over Payne Mountain
north to Three Forks and beyond.
The Company also announces an amendment to and the closing of a
private placement previously announced April 21, 2009. The total
number of units has been increased from 10,000,000 to 11,040,332
units for total proceeds of $662,420. Each of the units was priced
at $0.06 and consists of one flow-through or non flow-through
common share and one non flow-through non-transferable share
purchase warrant entitling the holder to purchase one additional
non-flow through common share for a period of two years at a price
of $0.10 per share. The financing has been fully subscribed and the
Company is pleased to announce the closing of this private
placement. The proceeds of the private placement will be used for
exploration programs, property option payments and general working
capital.
The securities issued under the private placement are subject to
a four month hold period. In connection with the closing of the
private placement, the Company paid a finder's fee of $7,996 to
Bolder Investment Partners Limited representing 8% of the gross
proceeds through Bolder Investment Partners Limited. The Company
also paid a finders' fee of $540 to Barrington Capital Corp. and
$540 to Richardson Partners Financial Limited representing 8% of
the gross proceeds through Barrington Capital Corp. and Richardson
Partners Financial Limited.
The Company also announces an amendment to and the closing of a
private placement previously announced May 29, 2009. The total
number of units has been increased from 12,500,000 to 13,700,332
units for total proceeds of $820,820. Each of the units was priced
at $0.06 and consists of one flow-through or non flow-through
common share and one non flow-through non-transferable share
purchase warrant entitling the holder to purchase one additional
non-flow through common share for a period of two years at a price
of $0.10 per share. The financing has been fully subscribed and the
Company is pleased to announce the closing of this private
placement. The proceeds of the private placement will be used for
exploration programs, property option payments and general working
capital.
The securities issued under the private placement are subject to
a four month hold period. Included in the private placement was the
sale of 8,333,332 flow-through units to MineralFields Group. In
connection with the transaction, Limited Market Dealer Inc. was
paid a total cash commission of $40,000 and Mr. Ben Lee was paid
$4,224 representing 8% of the gross proceeds of the private
placement through Ben Lee.
About MineralFields
MineralFields Group (a division of Pathway Asset Management) is
a Toronto-based mining fund with significant assets under
administration that offers its tax-advantaged super flow-through
limited partnerships to investors throughout Canada during most of
the calendar year, as well as hard-dollar resource limited
partnerships to investors throughout the world. Information about
the MineralFields Group is available at www.mineralfields.com.
The Qualified Person for the purpose of National Instrument
43-101 is Trygve Hoy, PEng, PhD who has read and agreed with the
technical information in this news release.
About Klondike Silver:
Klondike Silver Corp. has assembled a quality portfolio of
silver properties in historic mineral districts in North America,
and is applying advanced exploration technologies to add value to
these core assets. Klondike Silver is reviving the Gowganda and Elk
Lake silver camps in Ontario, and the world-famous Klondike
district of Yukon Territory. The Company owns a 100 TPD fully
operational flotation mill in Sandon, BC, which is currently
processing material from one of its Yukon properties and local
mines in the historic Slocan Silver Camp.
Klondike Silver is a member of the Hughes Exploration Group of
Companies and is led by a team with a stellar track record of
discovery and development in Canada.
The statements made in this news release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ materially
from the Company's expectations and projections.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy or contents of this news release.
Contacts: Corporate Inquiries: Klondike Silver Corp. Kevin Hull
or Alan Campbell (604)-685-2222 info@klondikesilver.com Or visit
Klondike Silver's web-site: www.klondikesilver.com to see Smartstox
interviews with Company President, Richard Hughes AGORACOM Investor
Relations KS@agoracom.com
http://www.agoracom.com/ir/KlondikeSilver
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