The Eagle mine’s all-season camp near Mayo in central Yukon. Victoria Gold says it has secured $505 million that will fully fund the development of the Eagle Gold mine through to commercial production. (www.archbould.com/Yukon News)

Yukon’s Eagle mine secures funding to get it to production

Utility board signs off on mine’s power purchase agreement

Victoria Gold says it has secured $505 million that will fully fund the development of the Eagle Gold mine through to commercial production.

In a news release March 8, the company says the deal with Orion Mine Finance, Osisko Gold Royalties Ltd. and Caterpillar Financial Services Limited is expected to close by the end of the month.

“With this project financing package, Victoria is in a position to continue construction activities and advance the Eagle project to first gold pour, which we expect in the second half of 2019,” said John McConnell, Victoria Gold’s president and CEO in a statement.

Victoria Gold began construction on the site, approximately 85 kilometres from Mayo, in 2017. The site is expected to be Yukon’s next operating gold mine.

If the deal is finalized Orion will own approximately 19 per cent of Victoria Gold and Osisko will own approximately 16 per cent, according to the statement.

Meanwhile the Yukon Utilities Board approved a plan March 7 for the mine to buy power from Yukon Energy.

According to the power purchase agreement, the mine is expected to spend at least $100 million on power over the first 10 years of its life.

How it gets that power is still up in the air. The mine could operate using the old power line for the first year or possibly two, Yukon Energy has previously said. The early stages of production are not expected to use as much energy.

The federal government has still not said whether it will fund upgrading the Stewart-Keno transmission line so that it can handle more power.

The Yukon government has applied to Ottawa for help covering a $75-million bill to upgrade the line from Mayo to Keno from 69 to 138 kilovolts.

Yukon Energy has previously said it is coming up with alternatives if the federal funding can’t be secured for the new transmission line by the end of September 2018.

For now, no one with the energy company is saying how confident they are that they will meet that deadline.

“All I can say is that we are working hard to secure funding,” spokesperson Janet Patterson said in an email.

Contact Ashley Joannou at ashleyj@yukon-news.com

Eagle goldgold mineYukon

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

U Kon Echelon hosts Tour de Haines Junction

U Kon Echelon continued its busy schedule with the Tour de Haines… Continue reading

Melted beeswax, community pottery take centre stage at Arts Underground’s August shows

Two new, and very different, shows will be opening at Whitehorse’s Arts… Continue reading

Northern First Nations call for a major overhaul of mining legislation

The Na-Cho Nyäk Dun, Tr’ondëk Hwëch’in and Vuntut Gwitchin Governments say change is long overdue

Yukon Salmon Sub-Committee recommends First Nations take ‘additional measures’ to conserve Chinook

Recommendation comes as Chinook run on the Yukon River appears unlikely to meet spawning goals

Students prepare for online learning as Yukon University announces fall semester

The school plans to support students who may struggle with remote learning

Changes to federal infrastructure funds allow for COVID-19 flexibility

Announcement allows for rapid COVID-19 projects and expands energy programs to Whitehorse

City hall, briefly

A look at decisions made by Whitehorse city council this week

C/TFN announces Montana Mountain reopening plan

Carcross/Tagish First Nation and the Carcross/Tagish Management Corporation announced the partial reopening… Continue reading

Roberta Joseph reelected as Tr’ondëk Hwëch’in chief

Unofficial results show Joseph with more than double the votes of runner-up

Development incentives considered for three projects

Projects will add 24 rental units to the market

Delegate calls for crosswalk changes to show support for people of colour

Mayor states support for idea, but cautions it could take some time

Whitehorse advises of water system maintenance

Residents on the city’s water system are being advised they may notice… Continue reading

Walkway, signs planned for West Dawson paddlewheel graveyard

Unofficial attraction may get 135-m walkway and interpretive signs, if YESAB application approved

Most Read