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     636  0 Kommentare Klondex Completes Acquisition of the Hollister and Esmeralda Mines and Announces Conversion of Subscription Receipts

    VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 3, 2016) - Klondex Mines Ltd. (TSX:KDX) (NYSE MKT:KLDX) ("Klondex" or the "Company") is pleased to announce the closing of its previously announced acquisition of all of the membership interests of Carlin Resources, LLC, the entity that owns, among other assets, the Hollister mine (the "Hollister Mine") and the Esmeralda mine and ore milling complex (the "Esmeralda Mine") located in Nevada (the "Acquisition"). The Acquisition was carried out pursuant to the terms of a membership interest purchase agreement (the "Purchase Agreement") dated July 25, 2016 among Klondex, Klondex Holdings (USA) Inc. ("Klondex USA"), an indirect wholly-owned subsidiary of the Company, Waterton Nevada Splitter, LLC ("Waterton Splitter") and Waterton Precious Metals Fund II Cayman, LP, as assigned by Klondex USA to Klondex Schuma Holdings LLC ("Klondex Schuma"), an indirect wholly-owned subsidiary of the Company.

    The Acquisition was completed in consideration for: (i) the payment by Klondex Schuma to Waterton Splitter of US$80 million in cash; (ii) the issuance by the Company to Waterton Splitter of 5,000,000 warrants (the "Consideration Warrants") to purchase common shares of the Company ("Common Shares"), which Consideration Warrants have a 15 1/2 year term, are exercisable commencing on April 3, 2017, have an exercise price equal to C$6.00 and include a forced conversion provision that requires the holder to convert the Consideration Warrants if the Common Shares trade at or above a 100% premium to the exercise price of the Consideration Warrants for 60 consecutive trading days on the market on which the Common Shares primarily trade; and (iii) the issuance by the Company to Waterton Splitter of 2,600,000 Common Shares.

    The Acquisition was financed through the net proceeds of the bought deal private placement completed on August 18, 2016, pursuant to which 25,900,000 subscription receipts of the Company (the "Subscription Receipts") were issued at a price of C$5.00 per Subscription Receipt for aggregate gross proceeds of C$129.5 million, which net proceeds were released from escrow in connection with the closing of the Acquisition.

    Upon closing of the Acquisition, each Subscription Receipt automatically converted into one special warrant of the Company (a "Special Warrant"). Each Special Warrant entitles the holder thereof to receive upon exercise or deemed exercise, without the payment of additional consideration, one Common Share. The Special Warrants are exercisable by the holders thereof at any time after the date hereof and all unexercised Special Warrants will be deemed to be exercised on the earlier of: (a) December 19, 2016, and (b) the third business day after the date a receipt is issued for a final prospectus by the securities regulatory authorities in each of the Provinces of Canada (other than Quebec) qualifying the Common Shares to be issued upon the exercise or deemed exercise of the Special Warrants (the "Deemed Exercise Date"). The Special Warrants are, and the Common Shares issuable upon the exercise of the Special Warrants prior to the Deemed Exercise Date will be, subject to a four month plus one day hold period commencing on August 18, 2016, pursuant to applicable Canadian securities laws, subject to the prospectus filing described below.

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    Klondex Completes Acquisition of the Hollister and Esmeralda Mines and Announces Conversion of Subscription Receipts VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 3, 2016) - Klondex Mines Ltd. (TSX:KDX) (NYSE MKT:KLDX) ("Klondex" or the "Company") is pleased to announce the closing of its previously announced acquisition of all of the membership interests of …