Yukon Zinc Corporation

Yukon Zinc Corporation

April 02, 2007 09:54 ET

Yukon Zinc Updates Progress of Wolverine Project Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 2, 2007) - Yukon Zinc Corporation (TSX VENTURE:YZC) recently appointed Barclays Capital as lead arranger for the senior debt financing of its Wolverine Project (see March 2, 2007 news release). Management has made good progress in discussions with Barclays and other institutions to determine the debt capacity of the project. Although it is still early in the process of securing senior debt and subordinated debt financing, discussions and progress have been encouraging.

Yukon Zinc has estimated that a total of approximately US $215 million, based on current US dollar exchange rates, is needed to cover the estimated capital cost of the project, working capital, debt service during construction and cost over-run provision. The main component is the capital cost of approximately US $178 million reported in the Wardrop Engineering Optimized Feasibility Study, which includes a US $21 million contingency and US $7 million in owner's costs.

Yukon Zinc's objective in financing the Wolverine Project is to procure approximately US $190 million through debt and subordinated debt and US $25 million through equity financing. The potential for high debt leverage for the Wolverine Project is based upon the Project's very high grades of zinc and precious metals, and the robust economics of the Project.

Management is evaluating opportunities for equity infusion related to concentrate off-take agreements and other opportunities. These efforts have the potential to minimize further issuances of shares, reducing the concern of shareholders related to significant new share dilution.

Yukon Zinc Corporation is focused on the development of the Wolverine deposit as the Yukon's next significant zinc-silver mine.

Except for the statements of historical fact contained herein, the information presented in this News Release constitutes "forward-looking statements" as such term is used in the U.S. Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements, including but not limited to, those with respect to the price of metals, the economic viability of properties, capital expenditures, costs and other factors and events described in this News Release, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Yukon Zinc to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such risks and other factors include, among others, the actual results of exploration activities; the estimation or realization of Mineral Resources and Mineral Reserves (as such terms are defined by applicable Canadian securities regulators); variations in the underlying assumptions associated with conclusions of economic evaluations including, the timing and amount of estimated future production, costs of production, capital expenditures, the failure of plant, equipment or processes to operate as anticipated and possible variations in ore grade or recovery rates; costs and timing of the development of new deposits; availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares; accidents, labour disputes and other risks of the mining industry including without limitation those associated with the environment; delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities; title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this News Release and in any document referred to in this News Release.

Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and Yukon Zinc undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

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
    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