The future of the Eagle Gold Mine in the Yukon looks brighter following an agreement by Singapore based Boroo to acquire Victoria Gold Corp for up to 140 million Canadian dollars. This move comes after a tumultuous year for the site, which saw production grind to a halt in June 2024 due to a heap leach failure that led to significant environmental contamination. The disaster forced Victoria Gold into receivership and resulted in its removal from the Toronto Stock Exchange this past September.
Boroo intends to breathe new life into the operation with a massive investment package exceeding 1.5 billion Canadian dollars. Through its subsidiary Gatsuurt Mining Inc, the company plans to dedicate roughly 800 million dollars toward critical cleanup efforts, water treatment, and infrastructure repairs between 2027 and 2029. An additional 600 million dollars is earmarked for general operations throughout the mine’s initial lifespan, signaling a comprehensive commitment to both ecological restoration and industrial recovery.
CEO Dulguun Erdenebaatar emphasized that rebuilding trust is just as important as repairing machinery. He stated that sustainable success depends on genuine partnerships with the Government of Yukon, local communities, and the First Nation of Na Cho Nyak Dun. By adhering to the International Cyanide Management Code, Boroo hopes to transform the site back into a safe and profitable venture while resolving the legacy of contamination left behind by previous management.
The transition is currently awaiting several hurdles, including approval from the Ontario Superior Court of Justice and regulatory clearances under the Competition Act. If approved by PwC acting as receiver in early December, the deal could close by the end of next year. For the Yukon government, this acquisition represents a major financial relief, as it promises to repay a 220 million dollar remediation loan and eliminate millions in yearly cleanup costs while restoring hundreds of local jobs.