Yukon-Nevada Gold Corp said it plans to enter into a$120 million prepaid forward gold purchase agreement with Deutsche Bank AG.

Under the deal, Deutsche Bank will fund the amount to Queenstake Resources USA Inc, a unit of Yukon-Nevada Gold.

Yukon-Nevada, which owns gold, silver, zinc and copper assets in Canada's Yukon territory and British Columbia and in Nevada in the U.S., said the facility is a forward contract structured to deliver 173,880 ounces of gold over 48 months.

The 173,880 ounces of gold that have been committed represent about 5.1 percent of the total gold resources at Queenstake's wholly-owned Jerritt Canyon property in Nevada, the gold producer said in a statement.

Yukon-Nevada, which has a market value of about C$423 million, said the value of the transaction is greater than 10 percent of its market capitalization. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila)