Klondex Mines (KDX-T) Aug 20, '15 is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P., which has agreed to purchase, on a bought deal basis, 7,400,000 common shares of the Company at a price of C$3.55 per Share, for aggregate gross proceeds of C$26,270,000. The Underwriters will also have the option, exercisable in whole or in part at any time up to 30 days after the closing of the Offering, to purchase up to an additional 1,110,000 Shares to cover the Underwriters' over-allotment position. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering will be C$30,210,500.
The net proceeds of the Offering are expected to be used for debt repayment, the continued exploration and development at the Midas Mine and Fire Creek project, and for working capital and general corporate purposes.
The Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada (other than the Province of Quebec) pursuant to National Instrument 44-101 Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
The Shares have not been registered under the United States Securities Act of 1933, as amended, or applicable state securities laws, and the Shares may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
The Offering is expected to close on or about September 10, 2015. Closing of the Offering is subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
About Klondex Mines Ltd. ( www.klondexmines.com)
We are a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. We have 100% interests in two producing mineral properties: the Fire Creek project and the Midas mine and ore milling facility, both of which are located in the State of Nevada, USA. Our milling and processing facilities, which are located at Midas, process mineralized material from both Midas and Fire Creek. Fire Creek is located approximately 100 miles south of Midas.
Klondex Mines Ltd.
John Seaberg
Senior
Vice President, Investor Relations
O: 775-621-5512 or M: (303) 668-7991
jseaberg@klondexmines.com |
