The court-appointed Receiver for Victoria Gold Corp. has reached an agreement for the sale of the Eagle Gold Mine to Gatsuurt Mining Inc. and Boroo Pte. Ltd. (collectively referred to as Boroo).
The sale agreement is subject to court approval and several other closing conditions.
The purchase price is $140 million, payable to the Receiver and based on the following specific milestones:
- a $20 million deposit, paid following court approval of the sale
- $20 million paid upon closing, which is expected to occur prior to December 31, 2026
- $50 million paid upon obtaining the permits necessary to restart operations
- $50 million paid upon achieving commercial production
If the above milestones are met, the proceeds of the sale will allow the Government of Yukon to be repaid funds it advanced for the remediation of Eagle Gold and costs of the receivership, with interest. As a condition of its loan to the Receiver, the Government of Yukon holds a first-priority position in repayment from the proceeds of the sale. Any repayment to other creditors will be determined by the Court.
On closing of the sale agreement, ongoing operations and remediation work at the Eagle Gold Mine will be transferred to and assumed by Boroo. Immediately following closing of the transaction, Boroo will refurnish an additional $104 million security.
Boroo has indicated that it intends to work closely with the First Nation of Na-Cho Nyäk Dun alongside local Yukon businesses during this time. Boroo expects to invest $1.5 billion over the lifespan of the mine.
Further details regarding the sale agreement can be found on the Receiver’s website.
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Any new operations at Eagle Gold will be required to meet the recommendations from the Independent Review Board and any other policy and practice updates that have been implemented in the Yukon since the initial licensing of the mine. All recommendations are expected to be complete by spring 2027.
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If Boroo is unable to obtain permits within a four-year timeframe, subject to certain terms and conditions, the Receiver shall issue an exit payment of up to $55 million to acknowledge the significant investments in care and maintenance and remediation undertaken by the company.
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To date, the Government of Yukon has advanced $185 million to the Receiver under a $220 million lending facility established in connection with the receivership. Of the amounts advanced, approximately $105 million was sourced from surety bonds held under Victoria Gold's mining licences, with the balance funded directly by the Government of Yukon.
Linnea Blum
Communications, Economy, Tourism and Culture
867-332-2625
[email protected]
John Thompson
Communications, Energy, Mines and Resources
867-332-6042
[email protected]