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Klondex Arranges Non-Brokered Private Placement
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Vancouver, British Columbia: August 1, 2008 - Klondex Mines Ltd. (TSX:
KDX) is pleased to announce that it has arranged a non-brokered private
placement of up to 1,500,000 units (the "Units") at a price of $1.15
per share for gross proceeds of $1,725,000. Each Unit will consist of
one common share and one share purchase warrant. Each warrant will
entitle the holder to purchase one additional common share of the
Company at a price of $1.60 for a period for 12 months after closing.
The warrants will be subject to a 30-day early expiration if the stock
closes on the Toronto Stock Exchange, for a period of 30 consecutive
trading days, at a price of $1.90 or greater. A 6% commission will
apply to a portion of the financing attributable to authorized agents.
The private placement is subject to exchange acceptance.
In accordance with securities legislation, the shares issued under the
private placement will be subject to a hold period of four months and
one day from the date of issuance of such securities. The net proceeds
of the private placement will be added to working capital and will be
used to complete Phase 7 of the surface drilling program for the Fire
Creek Property.
Excluding shares to be issued pursuant to this financing, as of August
1, 2008, Klondex had 22,989,673 shares issued and outstanding.
About Klondex Mines Ltd.:
Klondex Mines (TSX: KDX) is a gold exploration company focused on the
development and expansion of its high-grade Fire Creek deposit in
Nevada, covering 10,708 acres of fee and federal mining claims 100%
controlled by Klondex. At Fire Creek, Klondex has a September 2006, NI
43-101 defined Indicated Mineral Resource estimated at 1,636,555 tonnes
grading 19.88 grams per tonne (0.639 oz/tonne) containing 1,045,738 oz
of gold in two separate mineral zones. Since 2006, over 100,000 feet of
drilling has expanded the Company's resource, now being defined for an
updated 43-101. Klondex has filed for permits to begin bulk sampling
for metallurgical testing of up to 120,000 tons of ore and anticipates
receipt of these permits during Q3 '08.
Fire Creek is located along the Northern Nevada Rift and on the Battle
Mountain-Eureka Trend in North Central Nevada, an area of prolific gold
production. Klondex currently has three drill rigs working to expand
its resource at Fire Creek. The Company was founded over thirty years
ago, and its property portfolio consists of four gold exploration
projects, all in Nevada. Eighty percent of Klondex's known resource is
on private land. For more information, please visit
www.klondexmines.com.
ON BEHALF OF KLONDEX MINES LTD.
"William J. Solloway"
President
Investor Contact:
David Collins, Steven Hecht
Jaffoni & Collins Incorporated
KDX@jcir.com
(212) 835-8500
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Copyright (c) 2008 KLONDEX MINES LIMITED (KDX) All rights reserved.
For more information visit our website at http://www.klondexmines.com/
or send mailto:info@klondexmines.com
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