July 10, 2014
NOT FOR DISTRIBUTION IN THE UNITED STATES OR RELEASE OVER U.S. NEWSWIRES
VANCOUVER, BRITISH COLUMBIA - Klondex Mines Ltd. (TSX:KDX) (“Klondex” or
the “Company”) is pleased to announce that it has entered into an
agreement with a syndicate of underwriters led by GMP Securities L.P.
and including RBC Dominion Securities Inc., M Partners Inc., Industrial
Alliance Securities Inc., Dundee Securities Ltd. and Mackie Research
Capital Corporation (collectively, the “Underwriters”), which has agreed
to purchase, on a bought deal basis, 7,000,000 common shares (the
“Shares”) of the Company at a price of C$2.00 per Share, for aggregate
gross proceeds of C$14 million (the “Offering”). The Underwriters will
also have the option, exercisable in whole or in part at any time up to
30 days after the closing of the Offering, to purchase up to an
additional 1,050,000 Shares to cover the Underwriters’ over-allotment
position. In the event that the option is exercised in its entirety, the
aggregate gross proceeds of the Offering will be C$16,100,000.
The net proceeds of the Offering are expected to be used for the
accelerated exploration and development at the Midas Gold project and
Fire Creek gold project and for working capital and general corporate
The Shares will be offered by way of a short form prospectus to be filed
in all of the provinces of Canada (other than the Province of Quebec)
pursuant to National Instrument 44-101 Short Form Prospectus
Distributions and in the United States on a private placement basis
pursuant to an exemption from the registration requirements of the
United States Securities Act of 1933, as amended.
The Shares have not been registered under the United States Securities
Act of 1933, as amended, or applicable state securities laws, and the
Shares may not be offered or sold in the United States absent
registration or an applicable exemption from such registration
The Offering is expected to close on or about July 30, 2014. Closing of
the Offering is subject to certain conditions typical for a transaction
of this nature and the receipt of all necessary regulatory approvals,
including the approval of the Toronto Stock Exchange.
About Klondex Mines Ltd. (www.klondexmines.com)
Klondex Mines is focused on the exploration, development and production
of its high quality gold and silver projects. The company is operating
an ongoing bulk sampling program at its Fire Creek gold project located
in north central Nevada. Fire Creek is in a mining-friendly
jurisdiction, with onsite power and mining infrastructure, and near
major producers. Midas, Klondex’s newly acquired operating mine and
milling facility, is located 110 miles north of Fire Creek.
Klondex Mines Ltd.
President & CEO
Manager, Investor Relations
Cautionary Note Regarding Forward-Looking Information
This news release contains certain information that may constitute
forward-looking information under applicable securities laws. This
forward-looking information entails various risks and uncertainties that
are based on current expectations, and actual results may differ
materially from those contained in such information. These risks and
uncertainties include, but are not limited to, completion of the
proposed Offering; the risks and hazards associated with environmental
compliance and permitting for its existing underground operations; the
strength of the global economy; the price of gold; operational, funding
and liquidity risks; the degree to which mineral resource estimates are
reflective of actual mineral resources; and the degree to which factors
which would make a mineral deposit commercially viable are present.
There is no assurance that the Offering will be completed, either on the
terms proposed or at all. Risks and uncertainties about the Company’s
business are more fully discussed in the Company’s disclosure materials
filed with the securities regulatory authorities in Canada and available
www.sedar.com. Readers are urged to read these materials. The
Company assumes no obligation to update any forward-looking information
or to update the reasons why actual results could differ from such
information unless required by law.
Back to the News page