OAKVILLE, ON, June 3, 2014 /CNW/ - Yukon Gold Corporation, Inc. (the "Company" or "Yukon") (OTC Market: YGDC)
The Company is pleased to announce that it has entered into a Letter of Intent ("LOI") with Mojave Gold Corporation ("Mojave"), a private company incorporated in Nevada, U.S.A, to acquire Mojave's 23% interest in the Guyana Platinum Project in Guyana, South America.
Consideration for the purchase is to be 20,000,000 post roll back common shares of the Company. The LOI contemplates that 15,000,000 post roll back common shares will be delivered directly to Mojave's shareholders on a pro-rata basis and the balance of 5,000,000 post roll back common shares will be delivered to two creditors of Mojave to settle an existing lawsuit. The lawsuit has now been dismissed without prejudice. It is a condition of the LOI that an initial financing of USD$600,000 be completed by the Company on or before the closing of the transaction.
In addition to the LOI, the Company has an agreement to purchase the 77% interest in the Guyana Platinum Project held by GlobalMin LLC's ("GlobalMin") The Company announced this agreement in a press release on March 24, 2014. The two agreements are designed to give the Company the ability to acquire 100% ownership of Guyana Platinum Project.
The present exploration permits cover 3.3 million acres in Guyana with rights to convert to 10 Prospecting Licenses. The Prospecting Licenses cover 128,000 acres (200 square miles). The applications for the Prospect Licenses are being processed and expected to be issued shortly.
The Company has obtained shareholder approval for a reverse split of its common shares. Each 10 outstanding common shares of the Company will become one common share of the Company pursuant to the terms of the reverse split which is to be consummated before closing of the of the Agreements with Mojave and GlobalMin. In addition, the Company will change its name to "GlobalMin Ventures Inc." and adopt a new stock option plan.
Closing of the Agreements with Mojave and GlobalMin are set for June 30, 2014. Upon closing, the existing Board of Directors of the Company shall be composed of two directors nominated by Globalmin, two directors nominated by the Mojave, and one director representing the existing Yukon shareholders.
On Tuesday, May 27, 2014, Peter Shepherd was appointed by the Company's Board to fill a vacancy on the Board of Directors and to act as Interim President. Mr. Shepherd is expected to remain on the Board after the closing of the transaction.
Mr. Shepherd has over 30 years experience in the financial markets industry with a specific focus on the junior resource sector in both Canada and the U.S. He began his career in the brokerage business in 1982 and for the next 20 years became involved with many resource companies by raising capital for their exploration projects. Since 2003, he has worked privately to consult and finance a number of private and public companies in the resource industry.
Mr. Shepherd's experience and knowledge of the financial markets industry, along with an exceptional geological team headed by Dr. Paul Lechler, will be integral to the success of the project. Mr. Shepherd said, "I am looking forward to this new venture. Of all my years in the business, I have not come across a better exploration opportunity than the Platinum Project in Guyana, South America. Dr. Lechler has done an outstanding job of locating the source of Platinum present in the country's river sediments and assembling these large Platinum targets. Our intention is to drill these targets this year."
The Company's immediate objective is to raise sufficient capital to drill each source target to determine the economic value of the Platinum Group Minerals present.
FORWARD-LOOKING STATEMENTS: This news release may contain certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forwarding-looking statements.
SOURCE: Yukon Gold Corporation, Inc.
For further information: P. Shepherd, Phone: (905) 845-1073