Government of Yukon provides update on Victoria Gold Corp. receivership

The Government of Yukon continues to provide updates to Yukoners regarding the receivership of Victoria Gold Corp. (Victoria Gold).

PricewaterhouseCoopers Inc, the court-appointed Receiver for Victoria Gold, has entered into a definitive agreement with Sitka Gold Corp. (Sitka) to accelerate Sitka’s acquisition of the Clear Creek Property. Under the terms of the agreement, Sitka will pay the Receiver, on behalf of Victoria Gold, a final deferred payment of $6 million in cash. This payment will help fund the receivership proceedings and ongoing remediation work and, as a result, will reduce the amount of funding required by the Receiver from the Government of Yukon.

As contemplated in the original purchase agreement signed by Sitka and Victoria Gold on June 24, 2024, Sitka will issue to Victoria Gold a five per cent net smelter return royalty on the Clear Creek Property, which may be reduced to two per cent pursuant to a buy-down right in favour of Sitka. A contingent payment of $10 million upon identification of two million ounces of proven and probable gold reserves would also remain a potential future asset of the receivership estate. Each of the net smelter return royalty and the future contingent payment remain assets of Victoria Gold subject to the court-ordered priority charges granted in the receivership, including the Receiver’s Borrowing Charge in favour of the Government of Yukon. Upon closing of the transaction, Sitka will own 100 per cent of the Clear Creek Property.

The Ontario Superior Court of Justice (Commercial List) will hear the Receiver’s motion for approval of the transaction with Sitka Gold on August 18, 2026.