.com) – Yukon-Nevada Gold Corp on Wednesday said it agreed to sell future gold production forward to Deutsche Bank to fund operations and expansion at its Jerritt Canyon mine in Nevada.

Under the agreement, Toronto- and Frankfurt-listed Yukon-Nevada is required to deliver 650 oz of gold a month for 43 months, starting in March, for a total 27 950 oz.

In addition to the up-front payment – which equates to $715.56/oz – the German bank will also pay Yukon-Nevada the amount that the gold price is higher than $850/oz on delivery, up to a maximum $1 750/oz, the Vancouver-based company said.

Gold was changing hands on Wednesday for $1 742/oz.

Yukon-Nevada also gave Deutsche the right to buy 40-million shares for $0.44 each on or before February 7, 2015. The stock was trading 5.7% down on the TSX Wednesday morning, at C$0.415.

The miner currently has 930-million shares in issue.

If it fails to deliver the scheduled 650 oz of gold a month under the agreement, Deutsche Bank can take up shares in Yukon-Nevada as an alternative.

Jerritt Canyon last month started producing gold again after a three-week shutdown, during which Yukon-Nevada completed a winterisation and refurbishment program at the mill.

Yukon-Nevada also owns gold propertied in Canada's Yukon Territory and British Columbia.

Lets hope the CTO is lifted soon !!!!!!