Klondike Gold Corp. (TSXV:KG) (FRA:LBDP)(OTCQB:KDKGF) ('Klondike Gold' or the 'Company') is pleased to announce that it has entered into a Property Acquisition Agreement with C2C Gold Corp. ('C2C') for the purchase, by Klondike Gold of a 100% interest in C2C's 'Quartz' and 'Sulphur' properties comprised of 689 mining claims covering 143 square kilometers located in the Dawson mining district, Yukon, Canada (the 'Property Acquisition Agreement').
Upon completion of this transaction, Klondike Gold will have expanded its Klondike District Property land position covering the prospective Klondike goldfields with direct ownership of a total of 3,913 quartz claims (increased from 3,078) in one contiguous district-encompassing property covering a 727 square kilometer area (increased from 585), expanding the property area by 27%.
In return for the acquisition by Klondike Gold of a 100% interest in C2C's Quartz and Sulphur properties, plus 12 years of exploration data, the terms of the Property Acquisition Agreement are as follows:
Issuance of 1,000,000 common shares of the Company to C2C and The granting to C2C of a 1% net smelter returns royalty ('NSR Royalty') in respect of C2C's Quartz and Sulphur properties, of which Klondike Gold may purchase one-half of the NSR Royalty (being a 0.5% NSR Royalty) from C2C for cash in the amount of $500,000 at any time. The Quartz and Sulphur properties each have underlying 2% NSR Royalty obligations where Klondike Gold has the right to purchase one-half (or 1%) of each NSR Royalty for one million dollars ($1,000,000) cash and has a right of first refusal to purchase the remaining 1%.
Peter Tallman, Klondike Gold's CEO, states 'We welcome the opportunity to consolidate our land position covering the prospective southeast side of the Klondike District into one contiguous district-spanning claim group. The claim package will allow systematic exploration, evaluation and ranking of gold targets across the district with geological understanding of variations and potential zonation. Klondike Gold believes there is significant potential for multiple discoveries and this consolidation will allow the greatest opportunity for testing the best possible targets.'
The Property Acquisition Agreement is subject to final approval of the TSX Venture Exchange.
ABOUT KLONDIKE GOLD CORP.
Klondike Gold is a Vancouver based gold exploration company advancing its 100%-owned Klondike District Gold Project located at Dawson City, Yukon, one of the top mining jurisdictions in the world. The Klondike District Gold Project targets gold associated with district scale orogenic faults along the 55-kilometer length of the famous Klondike Goldfields placer district. Multi-kilometer gold mineralization has been identified at both the Lone Star Zone and Stander Zone, among other targets. The Company has identified an Initial Mineral Resource of 469,000 Indicated and 112,000 Inferred gold ounces1, a milestone first for the Klondike District. The Company is focused on exploration and development of its 727 square kilometer property accessible by scheduled airline and government-maintained roads located on the outskirts of Dawson City, Yukon, within the Tr'ondek Hwech'in First Nation traditional territory.
Contact:
Tel: (604) 609-6138
Email: info@klondikegoldcorp.com
Certain statements contained in this news release constitute 'forward-looking statements'. When used in this document, the words 'anticipated', 'expect', 'estimated', 'forecast', 'planned', and similar expressions are intended to identify forward-looking statements or information. These statements are based on current expectations of management, however, they are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this news release. Readers are cautioned not to place undue reliance on these statements. Klondike Gold does not undertake any obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date hereof, except as required by securities laws.
KLONDIKE GOLD CORP. 
