RE: Yukon Zinc Withdraws Current Prospectus FinanAs with most everything, the devil is in the details.
Simply put, YZC has a mediocre project. Their FS was run using US$0.85 fx - now, it's $1.00. That cuts ~18% off their ~30% IRR (using current prices) in one fell swoop. Very few (if any) projects will get funded with a 12% IRR, especially since the Looney is projected to head to $1.10, making YZC's project almost worthless. It's simply too slim a margin of safety and why they haven't been able to raise sufficient $ to fund the mine for 18 months.
At $0.13 stock price, to raise the $110MM of additional equity necessary to fund the project, YZC would have ended up with close to 1.5 Billion shares fd and most upside for current shareholders would disappear. I'm sure management felt significant pressure by current shareholders to pull their offering until market conditions improve.
By contrast, TAM carries close to a ~75% IRR at current prices and fx - makes a big difference.