Klondike Gold Secures $500,000 for Montana Creek Lease

Klondike Gold Corp. has finalized a mining lease and purchase option agreement with Armstrong Mining Corp., securing $500,000. The deal grants Armstrong a six-year lease with an option to purchase Klondike's Montana Creek Placer Property near Dawson City, Yukon. This 13.4 square kilometer property is a non-core asset for Klondike, whose primary focus is a larger 729 square kilometer gold exploration project.

The agreement allows Armstrong exclusive rights to mine the property, with Klondike receiving a 10% production royalty on extracted minerals. Armstrong can purchase the property for $9.5 million, with production royalties credited towards the purchase price. Originally staked in 2005, the property has a history of exploration and gold extraction, notably featuring on Discovery Channel's "Gold Rush."