Klondex Mines announced today that it has closed its previously announced public offering
Klondex Mines Ltd.
V.KDX: TSX-V
Klondex Mines Ltd. (TSX: KDX) (“Klondex Mines” or the “Company”) announced today that it has closed its previously announced public offering. Pursuant to the Offering, the Company has issued 8,400,000 units (the “Units”) in consideration for C$2.50 per Unit for gross proceeds of C$21,000,000. Each Unit consists of one common share of the Company (a “Common Share”) and one-half of a common share purchase warrant (each whole common share purchase warrant a “Warrant”). Each Warrant entitles the holder thereof to acquire one Common Share of the Company at a price of C$3.50 per Warrant for a period of 24 months from the Closing Date. The syndicate for the Offering was led by GMP Securities L.P. and included Mackie Research Capital Corporation, Jones, Gable & Company Ltd. and Fraser Mackenzie Limited.
The net proceeds from the Offering are expected to be used for the development of the Fire Creek gold project in Nevada, USA, and ongoing operating and working capital requirements.
The Company has granted the Underwriters an option (the “Over-Allotment Option”) to purchase additional Common Shares and/or additional Warrants, or a combination thereof (collectively, the “Additional Securities”) to cover over-allotments, if any, and for market stabilization purposes. For greater certainty, a maximum of 15%, in the aggregate, of the number of Common Shares and Warrants sold at the Closing may be issued as Additional Securities pursuant to the Over-Allotment Option. The Over-Allotment Option shall be exercisable for a period of 30 days following the Closing Date.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in the United States or to, or for the account or benefit of, “U.S. persons” (as such term is defined in Regulation S under the United States Securities Act of 1933, as amended). The Common Shares and Warrants described in this news release (and any Common Shares issued upon exercise of the Warrants) have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered, sold or delivered in the United States or to, or for the account or benefit of, U.S. persons absent an exemption from registration.
About Klondex Mines Ltd. (www.klondexmines.com):
Klondex Mines is focused on the exploration and development of its 100% owned Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling gold mining prospect that is located near power, transportation, mining infrastructure and several milling facilities. For more information on the mineral resource estimates, please refer to Klondex’s disclosure available at the SEDAR website.
On Behalf of Klondex Mines Ltd.
Blane W. Wilson
President & CEO
Investor & Media Contact:
David Collins
Jaffoni & Collins
KDX@jcir.com
(212) 835-8500
