Yukon Zinc Corporation
TSX VENTURE : YZC

Yukon Zinc Corporation

December 21, 2007 12:47 ET

Yukon Zinc Closes Second Tranche of Unit and Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Yukon Zinc Corporation (TSX VENTURE:YZC) is pleased to announce that it has closed the second tranche of the brokered private placement financing (the "Offering"), announced December 7, 2007. The closing consisted of 10,833,334 Units at a price of $0.12 per Unit for gross proceeds of $1,300,000, and 9,635,715 Flow-Through Common Shares at a price of $0.14 per share for gross proceeds of $1,349,000. Each Unit consists of one common share and one-half share purchase warrant. Each full warrant entitles the holder to purchase one common share for $0.16 for a two year period that expires on December 21, 2009. The financing was offered by a syndicate led by Haywood Securities Inc., co-led by Paradigm Capital Inc., and including Blackmont Capital Inc. ("the Agents"). The securities sold have a hold period that expires on April 22, 2008. The Agents received a cash commission equal to 6% of the gross proceeds. In addition, the Agents received Compensation Options entitling the Agents for a 12 month period expiring December 21, 2008, to acquire up to 650,000 common shares of Yukon Zinc at C$0.12 per share.

The gross proceeds of this tranche, plus the previous tranche of the Offering on December 20, totals approximately $6.9 million. The net proceeds will be used for maintaining the development and engineering activities associated with the advancement of the Wolverine Project, and provides working capital while Yukon Zinc evaluates alternative sources of the equity portion of the funds required to finance construction of the Wolverine Project and other forms of transactions that enhance shareholder value.

Yukon Zinc is focused on the development of the Wolverine 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.

The securities comprising the Offering 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 a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

This news release contains forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of failure to complete the proposed financing, failure to obtain necessary regulatory or shareholder approvals, and other risk factors beyond its control and actual results may differ materially from the expected results.

12G: 82-4603

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

Contact Information

  • Yukon Zinc Corporation
    Dr. Harlan Meade
    President and CEO
    (604) 682-5474 or Toll Free: 1-877-682-5474
    or
    Yukon Zinc Corporation
    Shae Dalphond
    Manager, Investor Communications
    (604) 682-5474 or Toll Free: 1-877-682-5474
    (604) 682-5404 (FAX)
    Email: info@yukonzinc.com
    Website: www.yukonzinc.com