Klondike Gold Completes Agreement for Disposition of British Columbia Property
VANCOUVER, British Columbia--(BUSINESS WIRE)--Klondike Gold Corp. (TSX.V:KG) (“Klondike”) announces that it has completed a Purchase and Sale Agreement (the “Purchase Agreement”) with PJX Resources Inc. (“PJX”) for the acquisition by PJX of 100% of Klondike’s Vine Extension Property (the “Property”) comprised of 84 claims totalling 6,300 hectares (63 square kilometers) located near Cranbrook, British Columbia, Canada.
The Property was initially optioned to PJX from Klondike under an Option Agreement dated April 26, 2012 which allowed PJX to earn up to a 50% interest in the Property by spending $1.5 million on exploration work and making share payments of 200,000 common shares over a 5 year period. Under the Purchase Agreement, which replaces the Option Agreement, PJX will not have to complete the remaining $1.4 million on exploration work or pay the 200,000 shares (none paid to date). PJX has purchased 100% of Klondike’s interest in the Property by issuing 700,000 common shares (“Shares”) to Klondike. In addition to the payment of Shares, Klondike retains a royalty equal to 1% of net smelter returns from minerals produced from the Property.
Klondike has agreed to vote its common shares with PJX Management and Board for a period of 2 years from the closing date of this transaction. If, at any time for a period of 1 year from the closing date, Klondike Gold wishes to assign, sell or transfer the Shares, Klondike must notify PJX and PJX will have the opportunity to arrange for the sale of the Shares on terms not less favourable to Klondike than the terms contained in the notice of sale.
The Purchase Agreement is subject to compliance with applicable securities laws and to receipt of the approval of the TSX Venture Exchange.
Peter Tallman, President and CEO of Klondike states “Klondike has divested its interest in the Vine Extension Property in return for a share position in PJX while retaining a royalty interest. PJX is actively exploring the Cranbrook region and has extensive local knowledge and expertise. This divestiture allows Klondike shareholders indirect participation in a broader portfolio of prospective drill-ready properties while keeping the Company’s financial focus on its core Yukon assets.”
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp., is a Canadian exploration company with offices in Vancouver, British Columbia, and Dawson City, Yukon. The Company is focused on the development of its Yukon gold properties, and also holds a large portfolio of gold and base metal projects in southeastern British Columbia.
On behalf of Klondike Gold Corp.
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.