Yukon Nevada Gold Corp T.YNG

Elko News- Mining Quarterly

[romara]

Say it again Sam.......here is the latest.....Richard

Yukon-Nevada seeks shareholder votes

By ADELLA HARDING - Mining Quarterly Editor

Published: Wednesday, November 4, 2009 12:29 PM CST

ELKO — Yukon-Nevada Gold Corp. is looking for shareholder support of an enticement for early exercise of warrants to bring in cash now while the company brings the Jerritt Canyon Mine north of Elko into full production.

“We definitely would like to have the warrants exercised early to get that bit of cash in,” Yukon-Nevada Investor Relations Manager Nicole Sanches said today.

The company’s subsidiary, Queenstake Resources, has restarted the mill and roasters at the site, and they are still ramping up to process gold ore from stockpiles at the site when the mine shut down in August 2008.

The Nevada Division of Environmental Protection allowed the mill to restart last spring but shut it down again May 30 after Queenstake failed to meet a deadline for installation of new mercury air emission controls, which have since been installed.

Queenstake and NDEP then signed a consent decree last month that gives the company the go-ahead to resume operations at Jerritt Canyon, and the company’s first step was to get the mill restarted again.

“We’re not at full capacity at the moment, but we will be pretty soon,” Sanches said.

Jerritt Canyon poured gold Oct. 18 from material remaining after the May 30 shutdown as the company moved into gear to warm up the roasters and begin processing ore, as well as to make plans to start underground mining again at the Smith Mine and later the SSX Mine.

“The company has been working hard toward getting both of the Jerritt Canyon mines and its mill back into production and into a sustainably profitable operating status,” Yukon-Nevada President and Chief Executive Officer Robert Baldock said in a statement this week.

Along with ore from stockpiles and resumption of mining, the company also plans to custom mill ore from other mines to keep the roaster busy, and Great Basin Gold said late last month it planned to send gold ore from the Hollister underground project to Jerritt Canyon for processing. Hollister is in northwestern Elko County.

Baldock stated that Yukon-Nevada needs immediate working capital to carry out its plans and requested the support of stockholders to approve issuance of replacement inducement warrants to those with private placements exercising current warrants early to provide the cash for the mine startup.

The early exercise of warrants would bring in roughly $14 million with the promise of replacement warrants exercisable for 24 months from issuance, according to the company, which also reported one shareholder loaned the company $2.5 million to fund the mill restart.

The company stated it hired the Laurel Hill Advisory Group LLC to help contact shareholders.

“We need a lot of shareholders to step up to the plate to vote to get us back on the road to prosperity,” Sanches said.

Meanwhile, there are lawsuits in Elko District Court and U.S. District Court in Reno against Queenstake, mainly for money still owed suppliers and former employees, as well as by the contractor Queenstake hired last September to manage the fluids and work on the mill and later operate the mill.

Baldock said earlier the company plans to pay its debts after returning the mine to full operation.

 

[AIMer300]

It seems that the article missed the basic fact that the company could raise $14 mill. and more, in a much less costly and dilutive manner.  Of course, Nicole didn't mention that to the reporter.

[arthur7440]

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