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NOT FOR DISTRIBUTION TO U.S.
NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
News Release
Yukon Zinc Closes Second Tranche of Unit and Flow-Through Financing
Vancouver, BC,
December 21, 2007 - Yukon Zinc Corporation (YZC.TSX-V) is pleased to announce that it has
closed the second tranche of the brokered private placement financing (the
"Offering"), announced December 7, 2007. The closing consisted of
10,833,334 Units at a price of $0.12 per Unit for gross proceeds of
$1,300,000, and 9,635,715 Flow-Through Common Shares at a price of $0.14 per
share for gross proceeds of $1,349,000. Each Unit consists of one
common share and one-half share purchase warrant. Each full warrant
entitles the holder to purchase one common share for $0.16 for a two year
period that expires on December 21, 2009. The financing was offered by
a syndicate led by Haywood Securities Inc., co-led by Paradigm Capital Inc.,
and including Blackmont Capital Inc. ("the
Agents"). The securities sold have a hold period that expires on
April 22, 2008. The Agents received a cash commission equal to 6% of
the gross proceeds. In addition, the Agents received Compensation Options
entitling the Agents for a 12 month period expiring December 21, 2008, to
acquire up to 650,000 common shares of Yukon Zinc at C$0.12 per share.
The gross proceeds of
this tranche, plus the previous tranche of the Offering on December 20,
totals approximately $6.9 million. The net proceeds will be used for maintaining
the development and engineering activities associated with the advancement of
the Wolverine Project, and provides working capital while Yukon Zinc
evaluates alternative sources of the equity portion of the funds required to
finance construction of the Wolverine Project and other forms of transactions
that enhance shareholder value.
Yukon Zinc is focused on
the development of the Wolverine deposit as the Yukon's
next significant zinc-silver mine and the exploration of the Finlayson
District as Canada's
newest Volcanogenic Massive Sulphide District.
The securities
comprising the Offering 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 a U.S. Person unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption from such
registration is available.
This news release
contains forward-looking statements based on assumptions and judgments of
management regarding future events or results that may prove to be inaccurate
as a result of failure to complete the proposed financing, failure to obtain
necessary regulatory or shareholder approvals, and other risk factors beyond
its control and actual results may differ materially from the expected
results.
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For more information
contact:
Dr. Harlan Meade, President and CEO
Shae Dalphond
Manager, Investor Communications
Telephone: (604) 682-5474 Toll-free: 1-877-682-5474
Facsimile: (604) 682-5404
info@yukonzinc.com www.yukonzinc.com
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND
DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OF THIS NEWS RELEASE.
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