RE: Very good report
Yukon Nevada Gold secures more funds to refurbish the Jerritt Canyon Mine
Following the financial meltdown, markets have certainly become more cautious and investors have become more diligent with their investments. Unlike market heady days, investors are not in a hurry to rush into investments. Raising capital for development efforts have therefore become more challenging. Only those with good properties, sound development programmes and good management to steer have been successful in their capital raising endeavours. The recent success by Toronto and Frankfurt listed Yukon-Nevada Gold Corp. (TSX-V: YNG; Frankfurt: NG6) in raising $5 million private placement should therefore viewed in a positive light.
What adds more to optimism is that the private placement is a non-brokered deal and consequently there has been no finder's fee or commission. The deal entailed the issue of some 22.73 million Common shares at a price of
.22 per Share to raise $5 million. The proceeds of the private placement transaction will be used to procure equipment and supplies for use during the annual shut down period, restocking the warehouse at the Company's Jerritt Canyon Mine, Nevada and for general working capital purposes.
The Jerritt Canyon Mine is the flagship project of the company and is operated by a fully owned subsidiary, Queenstake Resources USA Ltd. The company continues its development efforts at the Jerritt Canyon Mine and recently announced excellent assay results from the remaining 2008 diamond and reverse circulation drilling. Drilling from surface and underground stations has continued to identify or extend gold mineralization beyond known resources.
Unlike many other exploration stories, YNG is a producing company. The Jerritt Canyon Mine has a current annual production of 50,000 oz. The company expects to ramp up production to 150,000 oz per annum in 2010. The increase is expected to be realised through infrastructure improvements, increased access to a larger percentage of the current reserve and through near mine exploration.
In addition to the Jerritt Canyon Mine, YNG has several other projects namely, Ketza River, Silver Valley, Wolf property and the Money property. The Wolf property is a joint venture interest in the Wolf property with Atna Resources with YNG interest at 34.42%.
In what could be a significant development, YNG completed an agreement with Northwest Non-Ferrous International Investment Company Limited ("NWI"), a Chinese investment company, to form a new Canadian company, Yukon-Shaanxi Mining Company Inc. The new entity is expected to explore for and develop mineral resources in the Yukon Territory, Canada leading to the exploration for molybdenum, titanium, rare earth metals, aluminium, lead, zinc, gold, silver, uranium, copper and vanadium.
The company is well financed and has the availability of its own facilities to process its output. With improving gold fundamentals and its continued development efforts, markets are set to re-rate YNG.
About Yukon-Nevada Gold Corp
Yukon-Nevada Gold Corp. is a North American gold producer in the business of discovering, developing and operating gold deposits. The Company holds a diverse portfolio of gold, silver, zinc and copper properties in the Yukon Territory and British Columbia in Canada and in Nevada in the United States. The Company's focus has been on the acquisition and development of late stage development and operating properties with gold as the primary target. Continued growth will occur by increasing or initiating production from the Company's existing properties.
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