- The assets of Victoria Gold (TSX:VGCX), a Yukon-based miner, will be broken up and sold to the highest bidder after a massive cyanide solution spill at its Eagle gold mine on June 24
- The Ontario Superior Court of Justice has selected PricewaterhouseCoopers to manage the gold miner’s property, assets and undertakings on behalf of creditors
- Victoria Gold is a mineral explorer and producer focused on the Yukon
- Victoria Gold stock has fallen by 93.54 per cent since June 24
The assets of Victoria Gold (TSX:VGCX), a Yukon-based miner, will be broken up and sold to the highest bidder after a massive cyanide solution spill at its Eagle gold mine on June 24.
The Ontario Superior Court of Justice has granted the Yukon government’s request to appoint a receiver over the company, selecting PricewaterhouseCoopers to manage its property, assets and undertakings on behalf of creditors.
“The Government of Yukon has lost confidence in the management team of Victoria Gold Corporation to take the human health and safety and environmental consequences of the June 24, 2024, heap leach facility failure seriously or to respond with the urgency the situation demands,” Minister of Justice and Attorney General Tracy-Anne McPhee said in a statement on Wednesday about the receivership.
According to a report by CBC, the request follows Victoria Gold’s refusal to allow government inspectors on site, after initially assenting, as well as the company’s failure to comply with the government’s request to build a berm around the heap leach pad that failed and caused the spill.
The Yukon government is chiefly concerned with restoring contaminated waterways and affected wildlife, and could be facing years of environmental mitigation work ahead given the 4 million tons of material involved in the spill.
Victoria Gold, for its part, published news releases on Wednesday stating that it would oppose the receivership and on Thursday notifying investors that it expects the TSX to suspend its shares from trading and initiate a review to delist it from the exchange.
As of Dec. 31, the Eagle mine, the largest gold mine in Yukon history, contained 4.4 million ounces of gold resources and 2.3 million ounces in reserves, representing almost US$17 billion in the ground at Thursday’s spot price of approximately US$2,490 per ounce.
The mine produced 166,730 ounces of gold in 2023 and 29,580 ounces in Q1 2024, generating over C$13 million in free cash flow during the quarter. Victoria Gold has been profitable over the past four years, bringing in more than C$180 million in combined net income.
About Victoria Gold
Victoria Gold is a mineral explorer and producer focused on the Yukon.
Victoria Gold stock (TSX:VGCX) last traded at C$0.48 per share. The stock has fallen by 93.54 per cent since June 24.
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(Top photo of a bar of gold from the first gold pour at Victoria Gold’s Eagle mine in 2019: Victoria Gold)