Newspaper article The Canadian Press

Klondex Paying US$32 Million for Idled Rice Lake Gold Complex in Manitoba

Newspaper article The Canadian Press

Klondex Paying US$32 Million for Idled Rice Lake Gold Complex in Manitoba

Article excerpt

Klondex buying idled Manitoba mine complex

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VANCOUVER - Klondex Mines Ltd. (TSX: KDX) will pay US$32 million to acquire the idled Rice Lake gold mine and mill complex near Bissett, Man.

Klondex says the Manitoba property complements its flagship operations in Nevada, which includes the Midas gold mining and milling complex.

Its president and chief executive, Paul Andre Huet, says Klondex will be able to use equipment from Midas and its expertise in underground mining for the Rice Lake operation, which has operated intermittently since 1931. It was last idled in May.

The Rice Lake complex was formerly the core asset of San Gold Corp. but sold to a Manitoba numbered economy in June as part of a court-supervised bankruptcy.

Under the proposed acquisition, Klondex will pay US$20 million in cash and provide an interest-bearing note for the other US$12 million, to be paid down in three equal annual instalments. …

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