Klondex Mines Announces Terms of $9 Million Bought Deal Private Placement
Klondex Mines Ltd. (TSX: KDX) announces that it has agreed upon the
terms and pricing for its previously announced marketed private
placement with a syndicate of underwriters led by NCP Northland Capital
Partners Inc. and including Mackie Research Capital Corporation and
Wellington West Capital Markets Inc. The underwriters have agreed to
purchase, or find substituted purchasers for, 4,000,000 common shares at
a price of $2.25 per share for aggregate gross proceeds of $9 million.
Klondex plans to use the net proceeds from the offering for ongoing
exploration and site work at its Fire Creek property in Nevada and for
general working capital purposes. The private placement is in addition
to a previously announced gold-backed debt financing that Klondex is
seeking to complete for funding of its contemplated underground program
at Fire Creek.
The offering is scheduled to close on or about November 10, 2010 and is
subject to certain conditions including, but not limited to, the receipt
of all necessary approvals including the approval of the Toronto Stock
Exchange and the securities regulatory authorities.
This press release is not an offer or a solicitation of an offer of
securities for sale in the United States.The common shares of
Klondex have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an applicable exemption from
registration.
About Klondex Mines (www.klondexmines.com):
Klondex Mines Ltd. is focused on the 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. Klondex has identified the following NI 43-101
compliant resource at Fire Creek:
| Fire Creek ? Indicated and Inferred Resource* As of March 30, 2009 | ||||||
| Classification | Metric Tonnes | Grams Gold Equivalent Per Metric Tonne | Total Ounces | |||
| Indicated | 5,043,033 | 10.11 | 1,639,822 | |||
| Inferred | 1,833,423 | 8.63 | 508,799 | |||
| ||||||
ON BEHALF OF KLONDEX MINES LTD.
'William J. Solloway? Chairman and CEO 'Blane Wilson?
President and COO
Klondex Mines Ltd.
Investors:
Bryson Goodwin, 604-341-1531
brysongoodwin@shaw.ca