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News Release
Yukon Zinc Withdraws Current Prospectus Financing
Vancouver, BC, December 5, 2007 - Yukon Zinc Corporation
(YZC.TSX-V) ("the Company") announces that it has withdrawn
the previously-announced prospectus offering of securities, due to current
unfavourable equity market conditions. Dr. Harlan Meade states:
"We are disappointed on behalf of our stakeholders to take this
action, however it is not possible at this time to close the public financing
on favourable terms. Although no proposals are currently under consideration,
the Company will now focus on alternatives for financing the Wolverine
Project and will consider all forms of transactions that recognize the
inherent value of Wolverine and the other assets of the Company for
shareholders." In this regard it intends to engage
advisors to assist in this process.
Barclays Capital PLC has
informed the Company that the Barclays Capital US$140 million underwriting
commitment will remain in place while the Company evaluates various financing
options, subject to an expiration date of March 31, 2008. The Company
welcomes the continued support of Barclays as it provides a key part of the
project financing and allows management to focus on the equity portion.
The Company will reduce
activities at the Wolverine Project site over the next few months. Management
and the Board continue to believe that the Wolverine project will be financed
and built; however, it is important to preserve shareholder value in any new
financing plan developed. The Board and management are committed to evaluate
the alternatives and to define a plan that sees the renewal of development
activities at the earliest possible date.
Yukon Zinc
Corporation is focused on the development of the Wolverine zinc silver
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.
Except for the
statements of historical fact contained herein, the information presented in
this News Release constitutes "forward-looking statements" as such
term is used in Canadian securities laws. These statements relate to analyses
and other information that are based on forecasts of future results,
estimates of amounts not yet determinable and assumptions of
management. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always, using
words or phrases such as "expects" or "does not expect",
"is expected", "anticipates" or "does not
anticipate", "plans, "estimates" or "intends",
or stating that certain actions, events or results "may",
"could", "would", "might" or "will"
be taken, occur or be achieved) are not statements of historical fact and
should be viewed as "forward-looking statements". Such forward
looking statements, including but not limited to, those with respect to the
Offering, the Barclays Facility and the ability of the Company to proceed
with construction at the Wolverine Project and the other factors and events
described in this News Release, involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by such
forward-looking statements. Such risks and other factors include, among
others, the estimation or realization of Mineral Resources and Mineral
Reserves (as such terms are defined by applicable Canadian securities
regulators); variations in the underlying assumptions associated with
conclusions of economic evaluations, including the timing and amount of
estimated future production, costs of production, capital expenditures, the
failure of plant, equipment or processes to operate as anticipated and
possible variations in ore grade or recovery rates; availability of capital
to fund programs and the resulting dilution caused by the raising of capital
through the sale of shares; risks of the mining industry, including without
limitation, those associated with the environment; and delays in obtaining
governmental approvals, permits or financing. Although the Company has
attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in
forward-looking statements, there may be other factors that could cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements contained in this News
Release and in any document referred to in this News Release.
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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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