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Klondex closes C$26.3m financing

11th September 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – TSX-listed precious metals producer Klondex Mines has successfully closed a bought deal financing, raising gross proceeds of C$26.3-million.

The Vancouver-based company issued 7.4-million common shares at a price of C$3.55 apiece.

The offering was underwritten by a syndicate led by GMP Securities and included Canaccord Genuity, Clarus Securities, Dundee Securities, Mackie Research Capital, M Partners, RBC Dominion Securities, and Haywood Securities.

The company planned to use C$23.2-million of the net proceeds towards repaying the company's currently outstanding senior secured notes and the remaining funds for general working capital purposes.

Klondex owned 100% interests in two producing mineral properties, the Fire Creek project and the Midas mine and mill, in Nevada.

Despite closing 1.5% in the red on Thursday at C$3.28, Klondex’s TSX-listed stock had gained more than 70% in value since the start of the year.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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