Victoria Gold Corp. needs to find $400 million if major earthworks are to go ahead on schedule next spring.
The company just received its quartz mining licence for the Eagle gold mine last week.
“It’s probably the biggest milestone in the last four years of permitting,” said John McConnell, president and CEO.
But with gold prices down, investment money isn’t easy to come by.
“We’re looking at lots of alternatives,” said McConnell. “There is certainly money available, but we just have to make sure it’s at the right price, that it’s the best deal for our shareholders.
“We’re looking at everything from bank debt to different types of debt, it could be convertible debt, we could bring in a partner. But certainly in current markets issuing equity isn’t a real option.”
The company hopes to have financing in place by the end of the year, he said.
Work at the site has already begun, including road and bridge upgrades on the access road, said McConnell.
The plan for next year is to begin to strip the open pit, start the heap leach pad and expand the camp, he said.
But that work won’t start until the company has secured the full $430 million in capital for the project, said McConnell.
The company has about $26 million in working capital right now, he said.
But he is hopeful that the money will come.
“I’m feeling pretty good about it. The feasibility study was based on a gold price of $1,325, and at that the project had very nice economics. The current gold price is about $1,325. There are very few shovel-ready projects in first-class jurisdictions in the world. The money will come.”
The company also has to work out a deal with Yukon Energy on how the mine will be powered.
“We do have a letter of intent with them already. We’re working very closely with them and will come up with a solution that is the most beneficial to the Yukon and Victoria.”
The solution will likely be a combination of energy generated on site and grid power, said McConnell.