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05:02 PM EDT, 07/25/2016 (MT Newswires) -- Klondex Mines Ltd. (KLDX,KDX) was slumping in late Monday trade as the gold miner tonight said it has purchased the Hollister and the Esmeralda mines as well as an ore milling complex and other assets, all in northern Nevada, from Waterton Splitter for around $102.7 million in cash and Klondex stock.
KLDX shares were down almost 3% in Monday's U.S. after-market at $4.05 apiece, adding to a 3.5% decline during today's regular session.
Under terms of the purchase agreement,Klondex will pay $63 million in cash to Waterton at closing and will also issue a $17 million, four-year secured promissory note paying 6% in interest yearly. Subject to approval from the New York and Toronto stock exchanges,
The buyer also will issue warrants to buy 5 million Klondex shares at C$6, or about $4.54, apiece. The warrants are exercisable for 15 and one-half years beginning six months after their issue and also include a forced conversion provision requiring holders to convert the securities if the company's common shares trade are trading at or above a 100% premium to the exercise price for 60 consecutive trading days.
Klondex also has agreed to a C$100 million bought-deal private placement of 20 million subscription receipts at C$5.00 each.
In addition to the mine properties, Klondex will corporate office space in Winnemucca, Nev., as well as a core shed and corporate house. The deal also includes a laboratory in Lovelock, Nev., a mobile fleet of underground mining equipment; and certain other land interests and related assets.
Price: 4.05, Change: -0.12, Percent Change: -2.88
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