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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 C$8 Million Financing
Vancouver, BC, March 19, 2008 - Yukon Zinc
Corporation (YZC.TSX-V) is pleased to announce that it has closed the
non-brokered private placement financing ("the Offering") announced
on March 11, 2008. The closing consisted of 59,259,259 Units at a price
of $0.135 per Unit for gross proceeds of $8,000,000. 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 $0.17 for a two year
period that expires on March 19, 2010. The securities sold under the
Offering are subject to a mandatory hold period that expires on July 20,
2008.
The $8 million will eliminate a current working capital deficit and
provide additional working capital to maintain equipment purchase contracts
and the development schedule and other activities related to the Company's
Wolverine Project. Yukon Zinc is currently maintaining the site in a
state of readiness for resumption of development activities. Discussions with
potential investors continue to progress, as previously reported.
The Units were sold pursuant to applicable securities law exemptions
in jurisdictions outside of Canada.
As a result of the Offering, Resource Capital Fund IV L.P. of Denver, Colorado
has become an insider of the Company holding approximately 12.8% of the
issued common shares of the Company.
Yukon Zinc Corporation 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 will not be registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent registration or any applicable exemption from the
registration requirements.
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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