KLONDEX MINES LTD. (TSE:KDX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement

     On March 31, 2017, Klondex Mines Ltd., as borrower (“Klondex”), certain of its subsidiaries as guarantors, and Investec Bank PLC, as lender and security agent (“Investec”), entered into an Amendment to Facility Agreement (the “Amendment”). The Amendment amends the $35.0 million secured revolving facility agreement (the “Revolver”) with Investec, dated March 23, 2016 and amended on October 27, 2016.

     Amendment Provisions. The Amendment (i) extends the maturity date of the Revolver from March 23, 2018 to December 31, 2019, unless further extended by the parties, and (ii) modifies the reserves and resources required to be maintained by Klondex.

     Other Terms of the Revolver. Borrowings under the Revolver bear interest per annum at LIBOR plus Margin plus Risk Premium, as such terms are defined in the Revolver. Margin is determined by the Company’s Gearing Ratio (a measure of debt to EBITDA) and ranges from 2.75% -4.00% per annum and the Risk Premium is 0.35% per annum, until the balance under the February 2014 gold purchase agreement with a subsidiary of Franco-Nevada Corporation (the “Gold Purchase Agreement”) is less than $10.0 million, at which time the Risk Premium is no longer applicable (as such terms are defined in the Revolver). Revolver borrowings may be utilized by the Company for working capital requirements, general corporate purposes, and capital investments and expenditures. The Revolver is secured by all of the Company’s assets on a pari passu basis with the Gold Purchase Agreement.

About KLONDEX MINES LTD. (TSE:KDX)

Klondex Mines Ltd is a Canada-based gold and silver mining company. The Company focuses on exploration, development and production of over two gold and silver projects in north central Nevada, being the Fire Creek mine located in Lander County, Nevada, the Midas mine and ore milling facility located in Nevada. Its segments include Fire Creek, Midas, True North, and Corporate and other. Its over 1,000 tons per day milling facility processes mineralized materials from the Midas Mine and the Fire Creek Mine. The Midas Mine is a gold-silver vein deposit located a mile from the town of Midas, Nevada. It also owns an underground mine project located in Manitoba, Canada, which includes the Rice Lake Mine and Mill complex, and early-stage exploration properties located in the State of Nevada, the United States, and Manitoba and Ontario, Canada. The Company’s milling and processing facilities are located at Midas process ore from both Midas and Fire Creek in the State of Nevada.

KLONDEX MINES LTD. (TSE:KDX) Recent Trading Information

KLONDEX MINES LTD. (TSE:KDX) closed its last trading session up +0.06 at 5.19 with 700,932 shares trading hands.