Singapore-based Boroo has agreed to acquire Victoria Gold Corp. for up to C$140 million and plans to invest more than C$1.5 billion in the Eagle Gold Mine in Yukon, according to a Thursday (October 22) news release.
The company will invest in environmental remediation, mine restart activities and future operations at the project.
Victoria Gold, formerly listed on the Toronto Stock Exchange as TSX: VGCX, was delisted in September 2024 and remains under receivership.
Production at the Eagle Gold Mine was suspended in June 2024 after a heap-leach failure caused environmental contamination, prompting extensive cleanup work and eventually leading to Victoria Gold entering receivership.
The acquisition will be carried out through Gatsuurt Mining Inc., Boroo’s wholly owned subsidiary, which would become Victoria Gold’s sole shareholder.
Boroo CEO Dulguun Erdenebaatar said the company is committed to addressing environmental issues at the Eagle Gold Mine and restarting operations safely.
The company, “has a demonstrated global track record of acquiring complex operations and responsibly unlocking long-term economic value,” he said.
“We recognize that sustainable operations are impossible without genuine partnership. We look forward to continuing to work hand-in-hand with the First Nation of Na-Cho Nyäk Dun, the Government of Yukon, and local communities to rebuild trust, restore environmental integrity, and return the Eagle Gold Mine to safe, responsible, and profitable production.”
The transaction follows a court-supervised sale process and remains subject to approval by the Ontario Superior Court of Justice, regulatory clearance under the Competition Act and consent from the Government of Yukon.
The receiver, PricewaterhouseCoopers Inc. (PwC), plans to seek court approval in early December, with closing targeted for on or around December 31, 2026.
Under the agreement, Boroo will pay C$40 million upfront, with the remaining C$100 million tied to permitting and production milestones. The company will allocate C$800 million on mine cleanup, water treatment and restart work between 2027 and 2029.
Boroo is also expected to invest more than C$600 million in the mine over its initial operating life, bringing its total proposed investment including the acquisition to more than C$1.5 billion.
A three-phase plan covers remediation, mine restart and extending the mine’s life. Initial work focuses on stabilizing the failed heap leach facility, cleaning up the Dublin Gulch Valley and treating cyanide-impacted water.
The company said it aims to assess pit and waste-rock stability, verify resources and reserves, repair mining equipment and restart the crushing circuit and ADR plant. Boroo said its operating procedures will follow the International Cyanide Management Code.
According to CBC News, the Yukon government has provided a C$220 million loan to help fund remediation. The deal is expected to repay the territory and avoid an estimated C$72 million in annual remediation costs, while potentially creating hundreds of jobs.
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Securities Disclosure: I, Aastha Sethi, hold no direct investment interest in any company mentioned in this article.