Yukon-Nevada Gold Corp. Announces Restructuring of
Ketza River Assets
Vancouver, BC � March 3, 2011 � Yukon-Nevada Gold Corp. (TSX: YNG)
(Frankfurt Xetra Exchange: NG6) Robert F. Baldock, the
President and CEO of Yukon-Nevada Gold Corp. (the "Company"),
announces that the Board of Directors of the Company has determined, in principle,
to proceed with a restructuring of the Company�s assets which will result
in the Company�s Ketza River, Yukon property
being transferred to a separate corporate entity, Newco,
which will be a wholly-owned British Columbia subsidiary of the Company,
and will own 100% of the shares of Ketza River
Holdings Ltd., the Yukon domiciled company which holds the Ketza River assets.
It is anticipated that Newco will make a public
distribution of approximately 25% of its shares to fund the pre-production
costs of the Ketza River assets. Following
such public distribution, the Company will hold the remaining approximate
75% of the issued shares of Newco. It is
the intention that Newco will make application
for a listing of its shares on a recognized stock exchange.
Following the �spin-out� of Newco, the Company
will be able to focus on the further development and enhanced production of
its Jerritt Canyon Gold Mine in Elko County,
The proposed transaction remains subject to further review and approval by
the Company�s Board of Directors. If such approval is given,
completion of the transaction will be subject to approval of the applicable
securities regulatory bodies. In the interim, the Company is engaged
with advisers to determine how best to proceed in
terms of structure, timing and other important issues related to a
transaction of this type.
Mr. Baldock stated, "The creation of Newco and the appointment of separate management,
whilst maintaining shareholder control, will not only strengthen the group
management team but will also allow the present Company management to more
fully focus on Jerritt Canyon and the significant
program of development and growth planned at the Elko, Nevada operational
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.
more information please contact:
Yukon-Nevada Gold Corp.
Senior Director, Institutional Investor Relations
Tel: (604) 688-9427
Investor Relations Manager
Tel: (604) 688-9427 ext 224
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
WARNING: The Company relies upon litigation
protection for "forward-looking" statements.
This news release does not constitute an offer to
sell or a solicitation of an offer to buy any of the securities in the
United States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered
or sold within the United States or to U.S. Persons unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.