Klondex Mines Retires Short-Term Debt
Oct 22, 2013
OTC Disclosure News Service
– Klondex Mines Retires Short-Term Debt
RENO, NV and VANCOUVER, BC–(Marketwired – Oct 22, 2013) – Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF), a Nevada gold exploration and development company, today announces that all short-term debt has been repaid using proceeds from the recent financing and monies received from shipments of mineralized material. The retired debt includes C$2.4mm in bridge loans issued in July and C$1.65mm debt issued in 2010 all of which were to mature on November 30, 2013.
Unsecured debt of C$7mm, issued in November 2012, is due in January 2015.
Paul Huet, Klondex President and CEO stated, “Monetizing the mineralized materials?generated from recent testing, coupled with the $19.45mm financing, allowed us to pay off the short-term debt. We are left with a stronger balance sheet reflecting a comfortable level of both debt and cash as we continue to develop Fire Creek.”
About Klondex Mines Ltd. (http://www.klondexmines.com)
Klondex Mines is focused on the exploration and development of its Fire Creek gold project in North-Central Nevada. Fire Creek is permitted for bulk sampling.?The project is located in a mining-friendly jurisdiction, near its toll milling facilities, and major producers. As at October 21, 2013, the Company had 65.0mm shares issued and outstanding and 103.1mm shares, fully diluted. After conversion of the recent special warrant financing (14.2mm warrants), the company will have 79.2 mm shares issued and outstanding and 103.1mm shares, fully diluted.
This news release contains certain information that may constitute forward-looking information under applicable Canadian securities legislation, including information about current expectations regarding the actual or deemed exercise of the special warrants issued under the corporation’s recent private placement financing. This forward-looking information entails various risks and uncertainties are based on current expectations, and actual results may differ materially from those contained in such information. These risks and uncertainties include, but are not limited to the risks and hazards associated with environmental compliance and permitting for its underground operations, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present. Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law.
Klondex Mines Ltd.
Manager, Investor Relations
Klondex Mines Ltd.
Catalyst Global LLC
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