VANCOUVER, Aug. 15 /CNW/ - Yukon-Nevada Gold Corp. (Toronto Stock
Exchange: YNG; Frankfurt Xetra Exchange: NG6) today announces the
consideration of various plans to maximize the short term and long term value
of its investment in the Jerritt Canyon Mine, Nevada in light of current
The ongoing negative cash flow situation at Jerritt Canyon required
immediate action and the decision was made to suspend underground mining on
August 8th, 2008 (see press release) and the mining crew has now been laid
off. The Company has made efforts to ensure that most of the employees have
been placed into jobs at other mining companies around the area. A
considerable cost reduction plan and renegotiation of toll milling contracts
are in progress. The plan also includes the possible segregation of part of
the milling facility as a cash realizing transaction.
Jerritt Canyon's recently refurbished mill was in operation until this
past weekend, but the malfunction of a critical part in the drying circuit
caused the mill to be shut down for repairs. It will reopen as soon as
possible. In the meantime Small Mine Developers, SMD, the ore subcontractors,
has demobilized its equipment and personnel.
The Company is working hard to fulfill its statutory obligations to its
employees, such as continuing health coverage and the payment of all
suppliers. To address the liquidity problem at the Jerritt Canyon operation,
the Company is now focused on refinancing to ensure obligations are met and to
move forward to regain positive cash flow. There can be no assurance that the
financing or cash generating alternative chosen by the Company will be
available on acceptable terms, or at all. The failure to obtain this cash
generation will likely have a material adverse effect on the Company's
operations and financial condition.
The pre-feasibility study at the Company's Ketza River Project in the
Yukon Territory is continuing on schedule.
Management has also accepted the resignation of Christopher Oxner, Chief
Financial Officer effective immediately.
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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.
For further information:
For further information: Yukon-Nevada Gold Corp., Nicole Sanches,
Investor Relations Manager, Tel: (604) 688-9427, Email: email@example.com,
www.yukon-nevadagold.com; CHF Investor Relations, Jacqueline Wagenaar, Account
Manager, Tel: (416) 868-1079 ext. 289, Email: firstname.lastname@example.org,