 | | |
| UPCOMING EVENTS |
November 21 & 22, 2010
San Francisco Hard Assets
Marriott Marquis
March 6-9, 2011
PDAC 2011 Conference
Toronto, Ontario
Stay tuned for updates or request to be added to our e-mail list by clicking here.
|
Jul 14, 2010: News: Klondex Sets Term Sheet for $10 - $20 Million in Gold-Backed Financing... (more...)
Jul 06, 2010: News: Klondex Mines Appoints Mining Veteran Blane Wilson President and COO (more...)
Jun 22, 2010: News: Klondex and Paramount Agree to Release of Claims and Dismissal of Liti... (more...)
Lander County
Nevada
Updated: 02-Sep-10
| | |
|
|
| |   Wed Jul 14, 2010
Klondex Sets Term Sheet for $10 - $20 Million in Gold-Backed Financing to Fund its Underground Program in Nevada
|
| | Vancouver, B.C. -- July 14, 2010 - Klondex Mines Ltd. (TSX: KDX) is pleased to announce the execution of a financing Term Sheet with a New York based private investment firm whereby KDX will be entitled to draw down on a loan, at its option, a minimum of US$ 10 million to a maximum of US$ 20 million, for use in development of the Fire Creek property. This financing provides KDX the financial and operational flexibility to fund the development of its high grade Fire Creek property, without restrictions on operations. The financing is expected to close on or before August 31, 2010, subject to definitive documentation.
William J. Solloway states;
"We are very pleased with our new financial associates and the results of our negotiations. Our continued efforts to protect shareholder value with minimum dilution are represented in this term sheet. This varied transaction confirms the financing to further develop Fire Creek at a one-time cost of a small percentage of our start up gold recovery from the bulk sampling shipments."
Corporate funding has been secured at an interest rate of Prime + 3%. The funding will take the form of a gold loan and associated gold sales agreement. The loan will be repaid through the delivery of gold at US$825 from KDX's anticipated gold recovery of its Underground Exploration and Bulk Sampling program. We anticipate that the ounces at $825 will apply to only 11% of gold recovered from KDX's planned bulk sampling program and will amount to monthly payments of 433 ounces of gold (12,121 ounces total over the 36-month term of the loan). The US $10 million gold loan commitment representing 12,121 ounces is less than 1% of KDX's 43-101 compliant indicated and inferred resource of 2.1 million ounces at an average grade of approximately 10 g / ton.
The 3 year repayment schedule begins concurrently with the anticipated extraction of our first blocks of high grade ore and will be fully paid through our 120,000 ton (EST. 107,000 oz's) permitted bulk sample program at KDX's Fire Creek property southwest of Elko, Nevada.
Under the gold sales agreement, the investor has been granted the right to purchase KDX's gold production at a 3% discount to Spot Price for a period of three years after repayment of the US $10 million gold loan.
KDX will grant the investor 1 million 4-year purchase warrants at $3.00 per share (at US $20 million loan amount KDX will grant 2 million 4-year purchase warrants at $3.00 per share) and pay a 1.5 % cash fee at closing. The term sheet provides the investor with a 45-day exclusive right to provide KDX with financing of this nature. KDX's obligations under the gold loan and the gold sales agreement will be secured by a charge over all of the company's assets.
About Klondex Mines (http://www.klondexmines.com):
Klondex Mines Ltd. is focused on exploration and development of its 100% owned high-grade Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling low CapEx mining prospect that is well located near power, transportation, mining infrastructure and several milling facilities.
ON BEHALF OF KLONDEX MINES LTD.
"William J. Solloway" Chairman and CEO
"Blane Wilson" President and COO
Tel: 775-388-3885 |
| |
| | You can view the Previous News item: Tue Jul 6, 2010, Klondex Mines Appoints Mining Veteran Blane Wilson President and COO
You can return to the main News page, or press the Back button on your browser.
|
| |
| |
| | |
