December 18, 2009 Klondike Silver Corp: Private Placement
VANCOUVER, BC - Klondike Silver Corp. (the "Company") (TSX-V: KS) is pleased to announce it has arranged for a private placement of up to 20,000,000 units for total proceeds of up to $1,300,000. The financing will consist of flow through or non-flow through units priced at $0.065. Each of the flow-through units will consist of one flow through common share and one non-flow through, non-transferable share purchase warrant entitling the holder to purchase one additional common share for two years at a price of $0.10 per share. Each of the non flow-through units will consist of one 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 $0.10 per share in years one and two, $0.15 per share in year three and $0.20 per share in years four and five. In accordance with Exchange policies, finders' fees may be paid on the funds raised. The private placement is subject to regulatory approval.
Proceeds from the private placement will be used for exploration expenditures on the Company's British Columbia and Ontario mineral properties as well as for general working capital.
About Klondike Silver:
Klondike Silver is a member of the Hughes Exploration Group of Companies and is led by a team with a stellar track record of discovery and development in Canada.
Klondike Silver Corp. has assembled a quality portfolio of silver properties in historic mineral districts in North America, and is applying advanced exploration technologies to add value to these core assets. Klondike Silver is reviving the Gowganda and Elk Lake silver camps in Ontario, and the world-famous Klondike district of Yukon Territory. The Company owns a 100 TPD fully operational flotation mill in Sandon, BC, which is currently processing material from local mines in the historic Slocan Silver Camp. As well, Klondike Silver entered into a joint venture with Kootenay Gold Inc. to explore a copper-porphyry property in the state of Sonoro in northern Mexico.
Corporate Inquiries: Kevin Hull or Alan Campbell, (604)-685-2222
Or visit Klondike Silver's web-site: www.klondikesilver.com to see Smartstox interviews with Company President, Richard Hughes.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy or contents of this news release.
The statements made in this news 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.
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