An English bank has given a southeast Yukon area mine $140 million (US) to bring a zinc operation into production.

Harland Meade, president and CEO of Yukon Zinc Corp., which operates the Wolverine Mine in the Finlayson District, told investors this morning his company had received a commitment from Barclays' Bank for $140 million to help bring the mine into production.

'The Wolverine project has overcome many obstacles along the way to a production decision, reinforcing the adage that mines are made and not found.

'Barclays' is one of the major mining banks in the world and has provided this commitment after extensive technical review and due diligence,' Meade said.

'It's not often that a bank such as Barclays agrees to loan $140 million to a company that has a market capitalization of Canadian $75 million.'

Meade said in an interview this morning Barclays' commitment is contingent on his company's ability to raise an additional $110 million, permitting, completion of the loan document package, and securing major sales contracts.

The period of the loan with Barclays' is 7.5 years.

'The total capital requirement for the mine is estimated at $250 million (US),' he said.

Meade said the mine has all the major permits in place and now only needed a water licence.

He said the company would be seeking money through a variety of means and hopes to have the $110 million raised by November.

'We indicated that we'll raise the money through subordinated debt and the issuance of stock.'

According to Yukon Zinc, the Wolverine mine is estimated to have substantial reserves of zinc, copper, silver, iron and gold.

'The Wolverine project contains a diluted high proven and probable reserve of 5,152,000 tonnes grading 9.66 per cent zinc, 0.91 per cent copper, 1.26 per cent lead, 281.8 grams per tonne of silver and 1.26 grams per tonne of gold providing for a 9.5 year mining life,' according to Yukon Zinc.

'Conversion of inferred resources could provide an additional three years of mining life.'

Meade said Yukon Zinc has made significant investments in roads and equipment and that he hopes to be selling mine concentrates by 2009.

'We're planning to truck the concentrates down the Robert Campbell Highway to the port of Stewart,' he said.

'Our access road will be all-season access.'

Meade said while he couldn't say where he will be selling his mines product, the primary interest in zinc is currently from Asian markets.

He said he doesn't expect recent developments at the United Keno mine, where the Na-cho Nyak Dun pulled out of regulatory talks, to impact on his operation.

'We have a very good relationship with the first nations,' he said.