Government of Yukon provides update on Victoria Gold Corporation receivership

The Government of Yukon continues to provide updates to Yukoners regarding the receivership of Victoria Gold Corporation.

In its eighth report to the court, filed on February 26, the Receiver has indicated that it is selling assets, largely in the form of net smelter return royalties, to Franco Nevada Corp. for $55 million. These royalties should not be confused with Quartz Mining Act royalties. This money will help fund ongoing work at the site and help protect taxpayers by offsetting the cost of remediation efforts, as directed under the court’s receivership order. The maximum loan amount remains unchanged at $220 million.

The court-appointed Receiver is moving closer to finding a suitable buyer for the Eagle Gold Mine. The Government of Yukon is a key stakeholder as the receivership lender and the territory’s main mining regulator. We have provided input into the process to help ensure that the interests of Yukoners are protected. This includes setting out criteria to ensure that any potential buyer is responsible, experienced and well resourced.

The Ontario Supreme Court of Justice will hear the Receiver’s application to approve the sale of the royalties to Franco Nevada on March 9.