Boroo signs $100M deal for Yukon Eagle gold mine

Private firm Boroo has reached an agreement to purchase Victoria Gold for up to C$140 million (approximately $100 million), with the aim of potentially restarting the Eagle gold mine in Yukon. The Singapore-based buyer will pay C$40 million upfront and an additional C$100 million upon reaching specific milestones. The mine is located 375 km north of Whitehorse on the traditional territory of the Na-Cho Nyäk Dun First Nation.

Boroo's CEO, Dulguun Erdenebaatar, described the acquisition as a significant turning point for the Yukon asset, stating that his technical and environmental teams have conducted thorough due diligence to ensure responsible restarting and address environmental challenges. The deal could help Victoria Gold leave receivership following a contaminated release in June 2024, which exceeded the mine's containment system.

Court approval is still required, and there are questions regarding the division of cleanup liabilities and recovery of public funds. Boroo anticipates spending around C$800 million between 2027 and 2029 on rehabilitation, water treatment, site stabilization, and a phased restart of the mine. The proposed purchase, combined with the purchase price, represents Boroo's commitment of over C$1.5 billion into Canada.

The company's subsidiary, Gatsuurt Mining, would become Victoria Gold's sole shareholder. Independent reviews attribute the June 24, 2024 failure to static liquefaction, poor drainage, accumulated water, irrigation, and slope conditions, resulting in 1.8 million tonnes of material escaping containment. Boroo plans to focus on stabilizing the failed heap, treating cyanide-impacted water, reviewing pit and waste-rock stability, validating reserves, repairing equipment, and implementing tighter controls over ore characteristics and blending.