Klondike Gold Completes Agreement for Disposition of Portuguese Assets
30.01.2014 | Business Wire
Klondike Gold Corp. (TSX.V:KG) (“Klondike”) announces that it has signed a Definitive Agreement with Medgold Resources Corp. (“Medgold”) for the acquisition by Medgold of 100% of Klondike’s Portuguese assets (see Klondike news release dated December 11, 2013) comprised of five gold exploration permits covering 600 square kilometers located in northern Portugal.
The Portugal project combine five exploration licences (Balazar, Valongo, Legares, Castelo do Paiva and Ponte de Barca), with four covering the majority of the Valongo geological belt and gold occurrences, plus Ponte de Barca which covers orogenic gold occurrences, collectively located in the north of Portugal.
The terms for the acquisition of Klondike’s Portuguese assets are as follows:
- Payment of $10,000 in cash to Klondike upon signing of the LOI (paid).
- Payment of $40,000 in cash and 800,000 Medgold shares upon signing of Definitive Agreement (paid).
- A final payment in 12 months of $100,000 in cash and $250,000 in cash or shares (to be decided by Medgold).
- On closing of the purchase, Klondike will retain a 2.0% NSR, which will be re-purchasable for $1.0 million per percentage point.
Peter Tallman, President and CEO of Klondike states, “Klondike has divested its interests in Portugal in return for a meaningful share position in Medgold while retaining a royalty interest. This strategy allows Klondike Gold shareholders indirect participation in a portfolio of prospective European mineral properties while keeping the Company’s financial focus on its core Yukon assets.”
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp., is a Canadian exploration company with offices in Vancouver, British Columbia, and Dawson City, Yukon. The Company is focused on the development of its Yukon gold properties, and also holds a large portfolio of gold and base metal projects in southeastern British Columbia.
On behalf of Klondike Gold Corp.
“Peter Tallman”
President and CEO
(604) 609-6110
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact
Klondike Gold Corp.
Peter Tallman, 604-609-6110
President and CEO