Klondike Gold Corp. Announces Mining Lease and Option to Purchase Agreement for Montana Creek Placer Property
VANCOUVER, BC – March 11, 2025 – Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTCQB:KDKGF) (“Klondike Gold” or the “Company”), is pleased to announce that effective March 9, 2025, it has entered into a mining lease and option to purchase agreement (the “Agreement”) with Armstrong Mining Corp. (“Armstrong”). This Agreement grants Armstrong a 6-year lease with an option to purchase 100% of Klondike’s Montana Creek (surface gravel alluvial gold) placer property (the “Montana Creek Placer Property” or the “Property”).
Details of the Agreement
The Montana Creek Placer Property, located near Dawson City, Yukon, covers 13.4 square kilometers and consists of 239 placer claims. The Property is a non-core asset for Klondike Gold and is peripheral to the Company’s district spanning 729 square kilometer bedrock gold advanced exploration property. Under the Agreement, Armstrong will make annual lease payments to Klondike Gold and will have the option to purchase the Montana Creek Placer Property for a total consideration of CAD $5,000,000. The purchase price will be paid in cash and Klondike Gold shares.
Impact on Klondike Gold
This Agreement allows Klondike Gold to focus on its core advanced exploration property while generating revenue through the lease of the Montana Creek Placer Property. The Company will continue to explore its district-scale bedrock gold project, which has significant potential for large, high-grade discoveries. The sale of this non-core asset also reduces Klondike Gold’s operational costs and allows the Company to allocate resources towards its primary objectives.
- Reduction in operational costs
- Focus on core advanced exploration property
- Generation of revenue through lease
Impact on the World
The mining sector, particularly gold mining, continues to be a significant contributor to the global economy. The sale of Klondike Gold’s Montana Creek Placer Property to Armstrong represents an opportunity for continued exploration and potential gold production in the Yukon region. The mining industry creates jobs and stimulates economic growth in the local communities. Furthermore, the sale of this non-core asset allows Klondike Gold to focus on its advanced exploration property, which could lead to major discoveries and contribute to the global gold supply.
- Continued exploration and potential gold production in the Yukon region
- Creation of jobs and economic growth in local communities
- Potential contribution to the global gold supply
Conclusion
Klondike Gold’s entry into a mining lease and option to purchase agreement for its Montana Creek Placer Property represents an opportunity to generate revenue, reduce operational costs, and focus on its core advanced exploration property. This sale also contributes to the continued exploration and potential gold production in the Yukon region, creates jobs and stimulates economic growth in local communities, and could potentially contribute to the global gold supply. Klondike Gold remains committed to its exploration efforts and the pursuit of large, high-grade gold discoveries in its district-scale bedrock gold project.
For more information, please visit the Company’s website at www.klondikegoldcorp.com or contact Investor Relations at (604) 687-7130 or [email protected]
