Victoria Gold (TSX: VGCX) appears to have lost control of the situation at its Eagle Mine following the heap leach incident that occurred at the mine in late June. The company has now reportedly been served by the Yukon government in relation to the matter.
While details are thin at this time, Victoria Gold has said that the Yukon Government is seeking to appoint a receiver over the company and its property under the Courts of Justice Act of Ontario. An application was filed by the Yukon in the Ontario Superior Court of Justice and is returnable on August 14.
Victoria Gold has said that is intends to oppose the application.
READ: Victoria Gold Detects Elevated Cyanide Levels In Further Downstream Samples From Eagle Mine
The application follows the Yukon government late last week claiming that the groundwater flowing from the Eagle mine shows signs of high levels of cyanide contamination, although drinking water is said to not be at risk.
Victoria Gold last traded at $0.48 on the TSX.
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