Private Placement Tranche Closing

About this update from Klondike Silver Corp.

[{"type":"text","content":"Private Placement Tranche Closing\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n Vancouver, Canada -\n \n \n TheNewswire - September 25 2020\n \n \n - Klondike Silver Corp. (the\n\"Company\")\n \n (TSXV:KS)\n \n (\n \n OTC:KLSVF\n \n )\n \n a second tranche is\nclosing raising gross proceeds of $415,000 through the issuance of\n8,300,000 units (\"Unit\") at a price of $0.05 per each Unit.\nEach Unit will be comprised of one common share and one-half of one\nshare purchase warrant (a \"Warrant\"). Each whole Warrant is\nexercisable to purchase one common share of the Company at a price of\n$0.10 per share for a period of 30 months from the date of closing.\n \n \n The private placement is subject to TSX Venture Exchange approval and\nall securities are subject to a four month hold period. Finder's fees\nwill be payable in connection with the private placements, all in\naccordance with the policies of the TSX Venture Exchange. The net\nproceeds will be used for advancing Klondike's Sandon B.C. Silver Zinc\nLead project (\n \n drifting and drilling\nthe main vein structure\n \n ), and for general working capital.\n \n \n In the first tranche a director of the Company purchased 180,000 Units\nof the private placement. In the second tranche an existing insider\n(10% holder) of the Company purchased 800,000 Units of the private\nplacement. The placement to those persons constitutes a \"related\nparty transaction\" within the meaning of TSX Venture Exchange\nPolicy 5.9 and Multilateral Instrument 61-101 -\n \n Protection of Minority Security Holders in\nSpecial Transactions\n \n (\"MI 61-101\") adopted in the\nPolicy. The Company has relied on exemptions from the formal\nvaluation and minority shareholder approval requirements of MI 61-101\ncontained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of\nrelated party participation in the placement as neither the fair\nmarket value (as determined under MI 61-101) of the subject matter of,\nnor the fair market value of the consideration for, the transaction,\ninsofar as it involved the related parties, exceeded 25% of the\nCompany's market capitalization (as determined under MI 61-101).\n \n \n \n About Klondike\nSilver\n \n \n \n \n Klondike's Silvana Mine Silver Zinc\nLead project\n \n is\n \n located in South Eastern\nB.C.\n \n , 138 km north of the Trail B.C. smelter. The Com...

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