Klondike Gold closes $3.08-million private placement

Executive Summary

• Klondike Gold Corp. has closed a non-brokered private placement financing, raising gross proceeds of $3,086,959 to fund its 2026 drill programs and general working capital.
• The company issued 20,579,729 units at a price of $0.15 per unit, with each unit consisting of one common share and one common share purchase warrant.
• The financing enables the company to more than double its seasonal average drilling meterage, targeting an additional 8,000 metres of drilling in 2026 to update NI 43-101 mineral resources by early 2027.

Key Details

• Gross Proceeds: $3,086,959
• Units Issued: 20,579,729 units
• Price Per Unit: $0.15
• Warrant Terms: Each unit includes one common share purchase warrant with an exercise price of $0.20 per share, exercisable for a period of two years (expiring February 25, 2028).
• Statutory Hold Period: Four months and one day, expiring on June 26, 2026.
• Insider Participation: Four insiders purchased an aggregate of 990,000 units. These transactions are classified as related party transactions under Multilateral Instrument 61-101 but are exempt from formal valuation and minority shareholder approval requirements as the consideration did not exceed 25% of the company's market capitalization.
• Use of Proceeds: Continued exploration and development of the company's Yukon properties and general working capital.
• Operational Impact: Funding allows for a further 8,000 metres of drilling in 2026 targeting stepouts to mineralized zones at the Lone Star and Stander deposits. This follows 137 drill holes (19,137 metres) completed through 2025.
• Strategic Context: The company aims to update its NI 43-101 mineral resources in early 2027, potentially including new discoveries, building on its initial resource estimate of 469,000 indicated and 112,000 inferred gold ounces.

Notable Quotes

• "We are energized with the growing support from our strategic investors, providing funding for aggressive plans to expedite the resource expansion and development within our Klondike district gold project. The financing announced today, in conjunction with this season's forecast royalty payments from the Montana Creek Placer mine, will enable us to more than double our seasonal average drilling meterage and fund work." — Peter Tallman, President and CEO
• "The objective of this year's focused drill program will culminate in early 2027 with a planned update of National Instrument 43-101 mineral resources from drilling through 2026 drill within our Lone Star and Stander deposits, and potentially including new discoveries as well." — Peter Tallman, President and CEO