VANCOUVER, BRITISH COLUMBIA--(Marketwire - 09/24/09) - Klondike Gold Corp. (the "Company") (TSX-V:KG - News) is pleased to announce, subject to regulatory approval, that it has entered into an Option/Joint Venture Agreement (the "Agreement") with Anglo Swiss Resources Inc. ("Anglo") wherein Anglo will earn up to a 60% interest in the Company's Ron Gold property. The Ron Gold Property consists of 37 contiguous staked mineral claims and one crown granted mineral claim covering 1,492 hectares. Consideration from Anglo consists of paying $200,000, issuing 100,000 Anglo shares and incurring up to $650,000 in exploration expenditures by the 4th anniversary of this Agreement. This Agreement is subject to an underlying agreement with an arm's length party that comes with a 2% net smelter return royalty (the "Original Royalty Interest"). Anglo may at any time purchase three-quarters (1.5%) of the Original Royalty Interest from the holder of the Original Royalty Interest for $500,000. The Company also holds an additional royalty equal to 1% of net smelter returns (the "Second Royalty Interest"). Anglo may at any time purchase 100% of the Second Royalty Interest from the Company for $500,000. A finder's fee in the amount of $5,000 is also payable.
Upon completion of the 60% earn-in, a joint venture will be formed between the Company and Anglo.
The Ron Gold claims are situated on the eastern, western and southern borders of Anglo's 100% owned Kenville Gold Mine Property. This acquisition greatly enhances Anglo's land position to the south, which extends the potential strike length of the regional geological trend along the Silver King Shear. The Silver King Shear is the host to numerous historical gold and silver mines in southeastern British Columbia including Anglo's Kenville Gold Mine.
Anglo's consultants are presently developing a geological computer model of the Kenville property area, which includes structural geology, the mineralized quartz vein system, and previously mined underground workings. The addition of the Ron Property geological data will allow Anglo Swiss to expand its geological model to include more regional geology, which will assist in determining mineralized zones of interest on both properties.
The Company also announces that it has arranged for a private placement to up to 10,000,000 units for total proceeds of up to $400,000. The financing will consist of flow through units priced at $0.04 per unit and non-flow through units priced at $0.025 per unit. Each of the units will consist of one flow through or non-flow through common share and one non-flow through, non-transferable share purchase warrant entitling the holder to purchase one additional common share for five years at a price of $0.05 per share in the first year and $0.10 per share for the remaining four years. In accordance with Exchange policies, finders' fees may be paid on the funds raised. The private placement is subject to regulatory approval.
About Klondike Gold Corp.
Klondike Gold is a large landholder in the Klondike District of the Yukon Territory, an area which produced between six and twelve million ounces of gold during its historic gold rush. The Company also holds a 50% interest with partner Chalice Diamond Corp in approximately 78,000 acres of diamond properties located in the Chapleau-Wawa region of Ontario and a number of properties in southeastern British Columbia.
Please visit the Company's website: www.klondikegoldcorp.com for more information on the diamond properties in Ontario, our holdings in the Klondike and our properties in southeastern BC.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
