China bids more than $100 million
in takeover move on Yukon Zinc

From the Desk of Joan Kuyek
National Coordinator
MiningWatch Canada

Canadian Press

Yukon Zinc Corp. (TSXV:YZC) said Monday it has received an unsolicited takeover offer from a group of Chinese companies for more than $100 million in cash.

Earlier this month, Yukon Zinc had signed a deal to be bought by London-based Griffin Mining Ltd. in stock-swap deal that valued the Canadian miner at about $93.9 million.

"Griffin has been advised of the receipt of the Northwest Proposal and of the intention of the board to accept it and to recommend its adoption by the company's shareholders," Yukon Zinc said in a statement.

Griffin has five business days to respond to the proposal and amend its offer.
Yukon Zinc said Northwest Nonferrous Investment Co. Ltd. and Jinduicheng Molybdenum Group Ltd. have offered 22 cents in cash for each Yukon Zinc share.

The group has also said each Yukon Zinc option and warrant that is "in-the money" will be purchased for the cash value. All options and warrants that have an exercise price greater than the purchase price will be purchased for a total of $410,000.

The Chinese offer requires approval by two-thirds of Yukon Zinc shareholders and various other court and regulatory approvals.

The Griffin offer is one Griffin share for every nine shares held in Yukon Zinc.

Yukon Zinc owns the Wolverine project in the Yukon, believed to carry particularly high-grade deposits of silver.