VANCOUVER, British Columbia--(BUSINESS WIRE)--Klondike Gold Corp. (TSX.V:KG) (“Klondike Gold” or the “Company”) announces that the Company has entered into a lease agreement with Jerusalem Mining LLC (“Jerusalem Mining”) whereby Klondike Gold assigns to Jerusalem the rights and permits to placer mine on the McKinnon Creek property, Yukon. Under the terms of the lease agreement, Klondike Gold will receive from Jerusalem a direct 15% production royalty payable in raw gold and will receive an additional 5% on behalf of an underlying, pre-existing royalty holder. The lease agreement is subject to a minimum annual payment by Jerusalem Mining to Klondike Gold of 100 ounces raw gold or cash equivalent. As of October 2014 this payment to Klondike Gold has been made. The lease agreement is renewable annually for three years subject to annual approval by both parties. As of October 2014 the lease for 2015 has been approved by both parties. The agreement also acknowledges that during the term of the lease as part of the development and production activities Jerusalem Mining will be allowing employees and agents of Discovery Channel television access to the McKinnon Creek property.
The principal of Jerusalem Mining is Todd Hoffman. Todd Hoffman and his ‘crew’ are prominently featured on the Discovery Channel (USA) cable TV show “GOLD RUSH” which focuses on the trials of the Hoffman crew mining for placer gold. GOLD RUSH is Discovery Channel’s #1-rated show and is distributed to 100.8 million U.S. homes and over 200 million households globally in 210 countries.
GOLD RUSH returned for its fifth season on Friday, October 17 at 9 PM ET/PT in the United States, and will air as a 2-hour special in Canada Tuesday, October 21 at 8 PM ET/PT, and weekly thereafter at 9PM ET/PT. Klondike Gold and Peter Tallman, the Company’s President and CEO will be featured in the first episode and periodically throughout Season 5.
Peter Tallman, states “The lease agreement with the ‘Hoffman crew’ represents a positive business opportunity for Klondike Gold in terms of increasing production at McKinnon Creek while decreasing Klondike’s operating and carrying costs. Additionally, it has been a pleasure to work with Todd, his crew, and the film crew personnel on an interesting mining season. We look forward to watching the fun fifth season of GOLD RUSH.”
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
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Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Klondike disclaims any obligation to update or revise any forward-looking information or statements except as may be required.