RE: RE: Yukon-Nevada Gold Corp. Closes $20 Million Sounds like Deutsche Bank wanted to see positive results on mill refurbishment before they would finance further development of other nearby properties. I don't know if they're going mainly underground (higher grade but higher cost per ton) or open pit (cheaper but more waste) or both. Development is necessary, but costs money.
YNG entered a prepaid gold deal worth $120 million with DB last August to get their mill fixed and running. This deal runs 4 years, eating up 5.2 % of the Jerritt Canyon resources. They'll be out of debt after that, this debt anyway.
The wording is a bit vague, but it would appear the 40 mil warrants are exercised only if YNG can't deliver the agreed number of ounces per month.
Predicting is a mug's game, but I'd venture to say a brief runup followed by a slow but steady climb if YNG consistently lives up to or surpasses their debt servicing obligations.
Be optimistic, but don't quit your job. Yet.