VANCOUVER, BC / ACCESSWIRE / December 23, 2019 / Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTC:KDKGF) ("Klondike Gold" or the "Company") is pleased to provide an update to the merger of December 20, 2016 with Klondike Star Mineral Corporation ("Klondike Star").
Pursuant to a December 20, 2016 merger agreement offer between the Company and Klondike Star, Klondike Star shareholders tendered approximately 71% of shares on that date. For a three-year term from that date each remaining issued and outstanding share of Klondike Star's common stock (being 19,488,640), was automatically converted into the right to receive either 0.025 shares of common stock of Klondike Gold, or $0.0035 per share of Klondike Star in cash. The former shareholders of Klondike Star had until December 20, 2019 to tender the necessary documentation to convert their shareholdings.
As a result of the above merger, the Company accrued in trade and other payables a liability of $68,210 as at February 28, 2017, being $0.0035 times the total number of Klondike Star shares held by former shareholders.
As at December 20, 2019, the Company has paid out $12,414 for 3,546,756 Klondike Star shares tendered by Klondike Star shareholders and issued 13,894 common shares of the Company for 555,759 Klondike Star shares tendered by Klondike Star shareholders. The remaining 15,386,125 rights to convert have expired and the remaining liability has been written off.
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia, and Dawson City, Yukon Territory. The Company is focused on exploration and development of the Lone Star gold target at the confluence of Bonanza and Eldorado Creeks, within a district scale 576 square kilometer property accessible by government-maintained roads located on the outskirts of Dawson City, YT within the Tr'ondëk Hwëch'in First Nation traditional territory.
On behalf of KLONDIKE GOLD CORP.
President and CEO
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.
Disclaimer for Forward-Looking Information
"This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Klondike in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Klondike's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Klondike disclaims any obligation to update or revise any forward-looking information or statements except as may be required."
SOURCE: Klondike Gold Corp.