VANCOUVER, Aug. 28 /CNW/ - Yukon-Nevada Gold Corp. (Toronto Stock
Exchange: YNG; Frankfurt Xetra Exchange: NG6) Graham Dickson, the President of
Yukon-Nevada Gold Corp. (the "Company"), announces that, subject to regulatory
approval, the Company has negotiated a Senior Secured Notes financing of up to
US$35 million for its wholly-owned subsidiary, Queenstake Resources (USA) Ltd.
("Queenstake"). The Offering consists of Units, each Unit consisting of a
Senior Secured Note in the principal amount of US$1,000 (a "Note") of
Queenstake and a Warrant to purchase 1,000 common shares in the capital of the
Company (a "Warrant"). Each Warrant will be exercisable at a price of CDN$0.25
per share for a period of three years. The Notes and Warrants are
The Notes will mature eighteen (18) months from the date of issuance at
115% of the principal amount of such Notes. After eighteen (18) months from
the date of issuance of a Note, a holder of a Note shall have the right to
cause Queenstake to purchase all of its Notes then outstanding at a price
equal to the sum of 115% of the principal amount of such Notes to be
purchased. Queenstake shall have the right to repay the Notes at any time for
an amount equal to 115% of the principal amount of such Notes and accrued and
unpaid interest on the principal amount of the Notes.
The Notes will bear interest at an annual rate of fifteen percent (15%)
in which the entire eighteen (18) month term shall be prepaid in full at the
time of issuance of the Note.
The indebtedness represented by the Notes will be senior to all other
indebtedness of Queenstake.
The Notes will be senior secured exclusively by all the assets of
Queenstake located in the United States of America including, but not limited
to the assets at Jerritt Canyon, Nevada. No assets in Canada are being pledged
as security for the Notes, nor shall the Notes be guaranteed by the Company.
The Agent will be paid a cash fee equal to 7% of the aggregate gross
proceeds of the offering and warrants equal to 7% of the total number of
warrants issued on closing. The Warrants will be identical to the Warrants
issued to the Investors.
Proceeds of the financing will be utilized to complete a revised mine
plan for the Jerritt Canyon Mine to resume operation of Queenstake's
processing facilities and for general working capital.
Closing of the financing is subject to satisfactory completion of due
diligence and execution of definitive documentation.
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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.
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,