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KenoHillYT on Aug 26, 2024 10:59am
YG - Take the VG bond money n run - everyone else who cares
Globe says Yukon focuses on fixing Victoria Gold's mess
2024-08-26 07:25 ET - In the News
The Globe and Mail reports in its Saturday edition that the Yukon government is curbing expectations about a sale of the contaminated Eagle mine, saying that environmental remediation of the site is the main priority. The Globe's Niall McGee writes that the open pit gold mine in central Yukon was placed into receivership earlier this month. Victoria Gold collapsed with at least $230-million in outstanding debt. Its major creditors include CIBC, BMO, Desjardins, National Bank, Osisko Gold Royalties and the Yukon government. While Yukon has indicated that it will be able to recoup some of its costs through cashing in $103.7-million in security bonds paid by Victoria Gold, the other creditors have no such recourse. The preferred financial outcome for creditors is usually a sale of the company's assets. That way they receive a certain amount back on their investment. But in a news conference Friday, Yukon deputy minister Lauren Haney said the priority in this case is cleaning up the site, and trying to get it back to the state it was in before the disaster. "Unlike some other receivership situations that are more focused on sale of the main property or assets, this one is primarily focused on remediation," Ms. Haney said.
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