Klondike Gold: trading resumed, 40 more holes planned

Canada gold, junior mining companies

Klondike Gold was sent to the naughty corner for the paid article it had OilPrice.com.

“The article is the product of a corporate communicator attempting to encapsulate the news and direction of the Company’s exploration efforts specifically over the past three years as part of an awareness initiative. For greater clarity this article and its contents is not in any way intended as, nor should be confused with, technical disclosure, nor was this article reviewed by a Qualified Person.” Klondike Gold press release 22 August 2017

IIROC, in charge of regulating the disclosures of publically traded companies in Canada can issue trading halts if a company crosses “the line” in producing material which is technical in nature and not properly vetted by a Qualified Person. It is a judgement call. And it only applies to material produced by the company or at the company’s request. So, for example, as Klondike Gold is not yet a MotherlodeTV.net client, if I write that it is going to the moon, IIROC has nothing it can do.

That said, whether an article is paid for or not (and they are all paid for directly or indirectly), it is wise for a junior resource company to resist overly promotional language. When I do an interview or write up a company, I am looking for facts investors can rely on. Of course, I want colour and a sense of who the CEO is and where the project is going; but sticking to the facts avoids any difficulty with IIROC.

Meanwhile Klondike’s price is up $0.12 on the day at $0.47 with over 7 million shares traded. The company has a new press release out in which it promises to drill 40 holes in 30 days for a total of an additional 4000 meters of drilling. Apparently the market has shrugged off IIROC’s “time out”.

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