An Ontario court has approved the sale process for the Eagle gold mine in Yukon, a year after operations ceased at the site previously run by Victoria Gold (TSX: VGCX).
The package includes the Eagle mine property, surrounding placer and quartz claims, onsite equipment, and the assets of Golden Predator Mining Corporation—identified in the filing as a Victoria Gold subsidiary—including the Brewery Creek mine.
Court-appointed receiver PricewaterhouseCoopers will run the process, selecting qualified parties to submit binding bids by Oct. 15. Final court approval would follow, with a target to close by year-end.
The receiver did not specify an expected sale price. For context, total assets at Victoria Gold were valued at $824 million in June 2024, the month a catastrophic heap-leach failure occurred at Eagle.
READ: Victoria Gold: Review Points To Static Liquefaction for “Preventable” Eagle Mine Heap Collapse
LOIs must disclose the bidder’s experience with mining and heap-leach facilities, outline any plans to reopen the mine, and include a completed questionnaire for the First Nation of Na-Cho Nyäk Dun along with a proposed approach to securing the indigenous support. Before submitting final bids, shortlisted parties will be asked to meet with both the Yukon government and NND.
The bidding rules have already sparked industry chatter. An observer remarked that the heap-leach experience requirement “right there, 95% of the potential buyers are excluded,” questioning why a buyer would purchase the mine “but not reopen it.”
Justice Barbara Conway of the Ontario Superior Court of Justice noted that all parties agreed the asset should be marketed now. NND did not oppose the sale but asked to be kept informed.
“In granting the order today, the court was satisfied that the process will be robust, fair and comprehensive,” said Ranj Pillai, speaking as Yukon’s minister of economic development.
The sale is occurring against an ongoing cleanup. Victoria Gold halted operations after a major heap-leach slide released hundreds of millions of litres of cyanide solution, and remediation has been underway since. To fund the response, the Yukon government has advanced up to $220 million to PwC as of March.
Separately, secured creditors are owed more than $173 million, and $82.7 million is owed to hundreds of unsecured business creditors. The government characterized the sale as a path to recover “significant financial advancements” tied to remediation.
Information for this story was found via CBC and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
