They seam to be here taking advantage of the depressed stock prices offering chump change over bottom fish prices. Maybe the jr market needs a stimulous package from government....

Droping the capital gains to 25% for the jr exchange would offset the risk difference between the TSE and the TSX

The government has been using the flow through system to encourage seed investment in the resource sector... now that the oportunities have started flourish... IE resources and production eminent for many small companies.... the stocks are trading near their all time lows.

The rise in the cnd dollar impacted the jr market the most, How? The last rally provided a double dip for foreign investors... The stocks went up in parallel with the currency and foreign cash was pulled out... stripping the liquidity out of the market.... and has set up this slow spiral down...

In spite of commodities, metals and oil trading at near highs, and inventory in the low end, the jrs lanquish.

Solution: drop the capital gain for Canadians to invest in the jr sector..... this will provide additional risk tollerance and move more capital toward the sector.

Option 2 is to do nothing, and watch the years of exploration be gobbled up by foreign firms.

Maybe it's time for Flaherty to be pro active rather than and save our resource companies and mineral deposits before they are all gone. The best way to avoid takeovers is to have the market respect the intrinsic value of the companies

Remember this guy took action against the trusts.... and cheered the rise in the Canadian dollar.... he has dabled in market forces ...maybe he should try something positive rather than regressive.

JMHO

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Yukon Zinc receives 22-cent takeover offer

2008-04-28 17:50 ET - News Release

Dr. Harlan Meade reports

YUKON ZINC RECEIVES NEW ACQUISITION PROPOSAL

Yukon Zinc Corp. has received an unsolicited bid for 100 per cent of the outstanding shares, options and warrants of the company (the Northwest proposal) by way of plan of arrangement. The Northwest proposal was made by Northwest Nonferrous Investment Co. Ltd. and Jinduicheng Molybdenum Group Ltd. Both corporations exist under the laws of the People's Republic of China. The proposal results from due diligence investigation and discussions with the management of the investors that commenced in early 2007.

On April 18, 2008, the company entered into an agreement with Griffin Mining Ltd., under which Griffin will, subject to Yukon Zinc shareholder approval, acquire all of Yukon Zinc shares by the issue of one Griffin ordinary share for nine Yukon Zinc common shares (see news in Stockwatch on April 21, 2008). A fairness opinion in respect to the Griffin proposal was received from the company's adviser, Paradigm Capital Inc. The agreement with Griffin permits Yukon Zinc to consider any proposal that is potentially superior. 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. As a result, Griffin has five business days to respond to the investors' superior proposal and amend its proposal in response to the Northwest superior proposal. Subject to receipt and consideration of any amended proposal that Griffin may submit in the interim, the board will meet on May 6, 2008, to determine whether to accept the Northwest proposal.

Paradigm has delivered an opinion to the Yukon Zinc board stating that in its opinion, the Northwest proposal is fair, from a financial point of view, to the company's shareholders. The completion of a transaction related to either the Northwest or Griffin proposal is subject to regulatory approvals.

Summary of the Northwest proposal

The Northwest proposal provides for acquisition of all outstanding Yukon Zinc shares at a price of 22 cents per share, payable in cash. 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 (that is, out of the money) will be purchased for a total price of $410,000, according to a purchase schedule for each series of options and warrants.

The investors' cash offer for Yukon Zinc shares represents a premium of 37.5 per cent over the closing price of Yukon Zinc shares on Friday, April 25, 2008 (16 cents per share). The Northwest proposal exceeds the effective value of the Griffin proposal (19.7 cents per YZC share) by approximately 11.7 per cent, calculated on Monday, April 28, 2008, closing prices for Yukon Zinc and Griffin shares.

The proposal is structured as a plan of arrangement and is conditional on:

• Approval of 66-2/3 per cent of the votes cast by shareholders at a meeting of Yukon Zinc shareholders;
• Execution of a definitive acquisition agreement, a draft of which has also been received;
• Receipt of court and regulatory approvals, waiver of the Yukon Zinc shareholder rights plan, and other customary provisions such as no material adverse change.

There are no lock-up or additional due diligence conditions. The investors have represented that they are confident, based on discussions with the NDRC (the Chinese state agency controlling investment activities overseas for Chinese entities) that all necessary approvals will be obtained without delay and have the requisite financing in place to do so. The Northwest proposal is open for acceptance until 12 p.m. Vancouver time, May 7, 2008.

About Jinduicheng and Northwest

Jinduicheng is the largest producer of molybdenum and associated products in Asia and reportedly the third largest in the world. It is publicly traded on the Shanghai Stock Exchange after a recent a $1.2-billion (U.S.) initial public offering. Jinduicheng's mining and processing operations are located in Shaanxi province, China. Northwest represents the Shaanxi state geological bureau. In China, Northwest is one of the top five exploration and mining Bureaus among around 100 provincial bureaus in terms of revenue and technical capacity. Employing more than 6,000 employees, including 800 geologists, technologists and engineers, Northwest was the first bureau in China to conduct exploration projects in partnership with companies from western countries.

We seek Safe Harbor.