VANCOUVER, May 31, 2011 /CNW/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) (the "Company") is pleased to announce that, further to its news release
of May 24, 2011, the Company has closed its private placement for the
gross proceeds of $14,400,000 from the issuance of 33,488,372 units
(the "Units") at a price of $0.43 per unit to Deutsche Bank AG, London
Branch, ("Deutsche Bank"). There is no finder's fee or commission
payable on the private placement.
Each Unit consists of one common share (a "Share") and one warrant (the
"Warrant"). Each Warrant will have a 24 month term and is exercisable
at an exercise price of $0.55 per share (the "Warrant Shares"). The
Warrants are subject to accelerated expiry, at the option of the
Company, in the event that the ten-day volume weighted average trading
price of the Company's shares equals or exceeds $0.90 per share for ten
consecutive trading days.
In accordance with securities legislation currently in effect, the
Shares, the Warrants and the Warrant Shares will be subject to a "hold
period" of four months plus one day from the date of closing of the
Orifer s.a. ("Orifer"), a major shareholder of the Company, has
concluded the sale, for a nominal cost, of an aggregate of 140,400,000
of its warrant holdings. The warrants were sold on the condition that
they were to be exercised immediately by the buyer. Deutsche Bank was
the largest purchaser of the warrants, exercising 80,000,000 warrants
for gross proceeds to the Company of $25,600,000. The remaining
60,400,000 warrants were purchased and exercised by other institutional
investors and Company employees for gross proceeds to the Company of
The Orifer warrants entitled the holders to purchase up to 140,400,000
shares of the Company at the price of $0.32 per share at any time up to
January 12, 2012.
In approving the finance terms the board of directors resolved to add
two resident North American board members to the Company's Board of
Directors to better reflect shareholder representation and it was
subsequently confirmed that Orifer had agreed to lock-up its shares for
180 days from closing of the Company's private placement with Deutsche
Use of proceeds are for 2011 capital budget expenditures at the
Company's gold producing property, Jerritt Canyon located in northern
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
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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
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.
SOURCE Yukon-Nevada Gold Corp.
For further information:
Yukon-Nevada Gold Corp.
Senior Director, Institutional Investor Relations
Tel: (604) 688-9427
Investor Relations Manager
Tel: (604) 688-9427 ext 224
CHF Investor Relations
Director of Operations
Tel: (416) 868-1079 ext. 225
President and CEO
Tel: +49 711 25 35 92 40