Dear Mr. E,
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December 20, 2007
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NOT FOR
DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES
News Release
Yukon Zinc Closes First Tranche of Unit and Flow-Through Financing
Vancouver, BC,
December 20, 2007 - Yukon Zinc Corporation (YZC.TSX-V) is pleased to announce that it has
closed the first tranche of the brokered private placement financing (the
"Offering"), announced December 7, 2007. The closing consisted of
17,290,002 Units at a price of $0.12 per Unit for gross proceeds of
$2,074,800, and 15,672,857 Flow-Through Common Shares at a price of $0.14 per
share for gross proceeds of $2,194,200. 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 20, 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 21, 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 20, 2008, to acquire up to 1,037,400 common
shares of Yukon Zinc at C$0.12 per share.
The proceeds of the Offering 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.
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For more information contact:
Dr. Harlan Meade, President and CEO
Shae Dalphond Manager, Investor Communications
Telephone: (604) 682-5474 Toll-free: 1-877-682-5474
Facsimile: (604) 682-5404
info@yukonzinc.com
www.yukonzinc.com
THE TSX VENTURE EXCHANGE HAS
NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OF THIS NEWS
RELEASE.
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