Yukon-Nevada Gold Corp. Special General Meeting Results
Yukon-Nevada Gold Corp. Special General Meeting Results
Mar. 10, 2011 (PR Newswire) --
VANCOUVER, March 10 /PRNewswire/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) Robert F. Baldock, President and CEO of Yukon-Nevada Gold Corp. (the"Company"), announces that further to the Company's news release ofFebruary 4, 2011, at a Special General Meeting held on March 8, 2011,the Company's shareholders overwhelmingly approved a resolution toreduce, for a limited time, the exercise prices of the Company'sunlisted share purchase warrants. The resolution at the Meeting wasapproved by approximately 86% of the votes of the disinterestedshareholders. Shareholders of the Company who hold warrants were notpermitted to vote on the resolution.
In order to raise additional working capital in the short term, alleligible warrant-holders will now be entitled, for a period of 30 days,to exercise their warrants at an 18% discount to the original exerciseprice (the "Transaction") as set out in the information circular datedJanuary 25, 2011. The 30 day period will commence on March 14, 2011 andend on April 13, 2011. If the Warrants are not exercised during such 30day period, the exercise price will revert to the original exerciseprice. If all of the warrants are exercised at their reduced prices,the Company will have raised approximately $59M. The Company willprovide written notice to all warrant-holders advising them of thereduction of the exercise prices.
The discount to the exercise price will compensate warrant holders forloss of leverage in their investment, cost of financing the transactionand/or opportunity cost if other investments are liquidated to fund theTransaction as well as any resulting tax consequences.
The purpose of providing this incentive is to provide the Company withrequired working capital to fund its current business plan. Primary useof proceeds will be towards (but not limited to):
- Construction of new lined tailings storage facility as well as a secondary water storage facility to be completed before winter 2011/12,
- Upgrade to Digital Control Facility Monitoring System to improve plant operating efficiencies by replacing the current pneumatic system,
- Installation of additional quench tank and related items during the 2-week scheduled annual maintenance shutdown in May 2011,
- Complete winterization of the plant including construction and installation of new ore drying equipment that should be protected from climatic extremes,
- Completion of remaining environmental obligations as outlined in the Consent Decree with the Nevada Division of Environmental Protection to keep our current compliance in good standing,
- Obtain underground equipment necessary to commence operations at the SSX/Steer underground gold mine and continue development of the Starvation Canyon mine.
The TSX has conditionally accepted notice of the Transaction.
Yukon-Nevada Gold Corp. is a North American gold producer in thebusiness of discovering, developing and operating gold deposits. TheCompany holds a diverse portfolio of gold, silver, zinc and copperproperties in the Yukon Territory and British Columbia in Canada and inNevada in the United States. The Company's focus has been on theacquisition and development of late stage development and operatingproperties with gold as the primary target. Continued growth will occurby increasing or initiating production from the Company's existingproperties.