Yukon-Shaanxi Mining venture embraces Tagish Lake Gold: details to come

VANCOUVER, B.C. - Tagish Lake Gold Corp. (TSXV:TLG) said Thursday it is negotiating to merge with Yukon-Shaanxi Mining Co., a joint venture of Yukon-Nevada Gold Corp. (TSX:YNG) and the Northwest Geological Exploration and Mining Bureau for Non-Ferrous Metals of the People's Republic of China.

The share-exchange transaction, whose exchange terms are yet to be finalized, is aimed at forming a new B.C. corporation using the Yukon-Shaanxi Mining Co. name and listed on the TSX Venture Exchange.

Tagish Lake Gold owns the 178-square-kilometre Skukum gold-silver play, 80 kilometres by road south of Whitehorse.

Yukon-Shaanxi, owned 50-50 by Yukon-Nevada and the Chinese bureau, was formed a year ago to explore and develop mineral resources in the Yukon.

Tagish Lake Gold's thinly traded shares doubled in price to two cents after Thursday's news, representing a TSX Venture Exchange market value of $2.6 million. Yukon-Nevada was up half a cent to three cents, for a $5.6-million market capitalization.