August 27, 2018 – Vancouver, Canada – Klondike Silver Corp. (the “Company”) (TSX.V: KS) Further to the news release issued on August 21, 2018 the announced private placement will also be open to Existing Shareholders. The Company is raising up to $1,750,000 through a non-brokered private placement (the “Offering”) of up to 35,000,000 units at a price of $0.05 per unit. Each unit will consist of one common share and one non-transferable share purchase warrant, with each warrant exercisable for a period of 5 years from the closing at a price of $0.05 per share. The Offering is subject to TSX Venture Exchange (“TSXV”) final acceptance. All Units are subject to a four-month hold period from the date of issuance. Commissions may be paid on a portion of the funds raised. The Company expects Insider(s) will be participating for more than 25% of this private placement.
Existing Shareholder Exemption
Depending on demand and regulatory requirements, a portion of the Offering may be made in accordance with the provisions of the existing shareholder exemption (the “Existing Shareholder Exemption”) contained in Multilateral CSA Notice 45-313 and the various corresponding blanket orders and rules of participating jurisdictions. In addition to conducting the Offering pursuant to the Existing Shareholder Exemption, the Offering will also be conducted pursuant to other available prospectus exemptions, including sales to accredited investors, family and close personal friends and business associates of directors and officers of the Company.
The Company has set August 17, 2018 as the record date for the purpose of determining existing shareholders entitled to purchase Units pursuant to the Existing Shareholder Exemption. Subscribers purchasing Units under the Existing Shareholder Exemption will need to represent in writing that they meet certain requirements of the Existing Shareholder Exemption, including that they were, on or before the record date, a shareholder of the Company and are still a shareholder. The aggregate acquisition cost to a subscriber under the Existing Shareholder Exemption cannot exceed $15,000 unless that subscriber has obtained advice from a registered investment dealer regarding the suitability of the investment.
The net proceeds will be used for advancing the Sandon B.C. project, located 80 KM north of the Trail B.C. smelter, and for general working capital.
For additional information please visit the company website www.klondikesilver.com
About Klondike Silver
Klondike Silver’s Royalty Free SILVER LEAD ZINC land package (100 km2) is located in the SLOCAN MINING CAMP (Southeast British Columbia – 138 km North of Teck’s Silver Lead Zinc smelter (Trail B.C.)). Based on the British Columbia MINFILE mineral database, sixty eight (68) of the one hundred and seventy three (173) past producing Silver Lead Zinc mines in the Slocan Mining Camp are located in the Klondike Silver land package. Klondike Silver has created the first real opportunity to invest in and properly explore a sizeable portion of one of the most historic mining camps in British Columbia. Klondike likes to think of the Slocan as the last best under explored Silver Lead Zinc camp in Canada. For additional information please visit the company website www.klondikesilver.com.
Dale Dobson: (604) 682-2928
On Behalf of the Board of Directors
Klondike Silver Corp.
Thomas Kennedy, B.Comm., J.D.
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.