By Sheri Kasprzak
New York, March 9 - Klondex Mines Ltd. said it intends to raise up to C$6,187,500 in a private placement through agent Quest Securities Corp.
The offering includes up to 2.75 million units at C$2.25 each. The price per unit is an 11.4% discount to the company's closing stock price of C$2.54 on March 8.
The units are comprised of one share and one half-share warrant. Each whole warrant allows for the purchase of another share at C$3.00 for 18 months.
The expiry of the warrants may be accelerated if the company's stock trades above C$4.00 for more than 20 consecutive trading days.
Quest has a greenshoe for up to 500,000 additional units.
Klondex plans to use the proceeds for ongoing work at the Fire Creek property and for working capital and general corporate purposes.
Based in Vancouver, B.C., Klondex is a mineral exploration company.
| Issuer: | Klondex Mines Ltd.
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| Issue: | Units of one share and one half-share warrant
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| Amount: | C$6,187,500 (maximum)
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| Units: | 2.75 million (maximum)
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| Greenshoe: | For up to 500,000 units
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| Price: | C$2.25
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$4.00
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| Placement agent: | Quest Securities Corp.
|
| Pricing date: | March 9
|
| Stock symbol: | TSX Venture: KDX
|
| Stock price: | C$2.54 at close March 8
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