Klondike Gold Corp. Reactivated
11.07.2011 | Marketwire
- New agreement re-activates Klondike Gold Rush ground.- $25,750,000 to be spent over three years to earn 100%
- Successful Klondike miner becomes new operator
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - July 11, 2011) - Klondike Gold Corp. (TSX VENTURE: KG) is pleased to announce the signing of a tri-party agreement that reactivates an extensive exploration program on the hard-rock claims covering the site of the Eldorado Creek and Bonanza Creek discovery claims – site of the world famous Klondike Gold Rush in 1896. Over 6.8 million ounces was reportedly mined from this drainage in subsequent years.
Klondike Gold Corp. ("KG") holds a 100% legal and a 45% beneficial interest in a group of quartz claims and crown grants located between Eldorado Creek and Upper Bonanza Creek, Dawson Mining Division, Yukon. Under an Earn-In Agreement, Klondike Star Mineral Corp. ("KSMC") earned a 55% beneficial interest in the property by spending $2,250,000 between 2003 and 2005 plus a 100% interest in certain adjacent claims.
KG and KSMC have agreed to combine their interests in the Property and collectively, as Optionor, grant certain options to Lonestar Gold Corp.("Lonestar"), a British Columbia corporation having offices in Vancouver, BC and Whitehorse, Yukon. The aggregate consideration Lonestar will pay if the Option to Lonestar is fully exercised will amount to $25,750,000 in expenditures on the Property as the total minimum required work commitments; and the issuance of $25,750,000 in common shares in the capital of Lonestar being the equivalent in number to the common shares issued to obtain the funding necessary to finance the expenditures for the minimum required work commitments.
New Operator, Lonestar Gold Corp. is led by President Erich Rauguth who along with partner, Manfred Peshke, have over 70 years of international mining experience, including actively mining since 1972 throughout the Klondike Mining District. Rauguth also has extensive experience in mining in Venezuela, Guyana, Brazil and Costa Rica while serving as President of Rep. Carson Gold Venezuela, as President of Minera Las Christinas Venezuela, and as President of Vannessa de Venezuela.
On corporate matters, Klondike Gold Corporation wishes to announce the resignation of Lynn Evoy from the Board of Directors. The Company wishes to thank Mr. Evoy for his valuable service and wishes him the best going forward. Steven Chan has been appointed to the board to fill the vacancy left by Mr. Evoy. Steven Chan developed an extensive network of industry players in his position as Vice-President of a leading investment show company.
The company also announces the resignation of Diana Mark as Corporate Secretary and the appointment of John-Mark Campbell as Corporate Secretary.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contact Information
Hughes Exploration Group
Alan Campbell
Investor Relations
(604) 685-2222
Hughes Exploration Group
Kevin Hull
Investor Relations
(604) 685-2222
(604) 685-3764 (FAX)
info@klondikegoldcorp.com
www.klondikegoldcorp.com