November 29, 2011
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
November 29, 2011
- 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
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.
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
On Behalf of Klondex Mines Ltd.
Blane W. Wilson
President & CEO
Investor & Media Contact:
Jaffoni & Collins
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