Klondike Gold Closes Oversubscribed Private Placement Raising $970,736

VANCOUVER, BC / ACCESSWIRE / May 21, 2024 / Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTCQB:KDKGF) ("Klondike Gold" or the "Company") is pleased to announce that further to its news release of May 14, 2024, the Company has closed its oversubscribed non-brokered private placement financing, raising $970,736.85 (the "Private Placement").

In closing the Private Placement, the Company issued an aggregate of 10,785,965 units (each, a "Unit") at a price of $0.09 per unit consisting of 10,785,965 common shares and 10,785,965 share purchase warrants (each, a "Warrant").

All warrants are exercisable at a price of $0.15 per share for one common share in the capital of the Company for a period of two (2) years from the date of the issuance, expiring May 17, 2026.

The Company also paid an aggregate of cash finder's fees $8,640 and issued 96,000 finder's warrants (the "Finders Warrants"), of which Haywood Securities Inc. was paid $540 and was issued 6,000 Finders Warrants and Canaccord Genuity Corp. was paid $8,100 and was issued 90,000 Finder's Warrants. Each Finder's Warrant entitles the holder thereof to purchase one common share of the Company (a "Finder's Warrant Share") at a price of $0.15 per Finder's Warrant Share until May 17, 2026.

All securities issued in connection with the Private Placement are subject to a four month and one day statutory hold period expiring on September 18, 2024, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

The Company intends to use the proceeds from the financing to fund ongoing and future exploration and drill programs and general working capital at the Company's 100% owned Klondike District Property (the "Property") in the Dawson mining district, Yukon, Canada.

Three insiders of the Company participated in the Private Placement and acquired an aggregate of 3,613,888 Units. The purchases by these insiders constitute "related party transactions" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuances are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as they are distributions of securities for cash and the fair market value of the Units issued to, and the consideration paid by, the insider did not exceed 25% of the Company's market capitalization. No new insiders were created, nor any change of control occurred, as a result of closing the Frist Tranche of the private placement.