Yukon Eagle Gold Mine Cleanup Costs Reach $301 Million

Financial records released earlier this month show that cleanup costs at the Eagle Gold Mine have reached $301 million since the operator entered receivership in August 2024. The receiver, PricewaterhouseCoopers, projects that spending will rise to $377.5 million by the end of September.

PricewaterhouseCoopers has drawn on $405 million in combined asset sales and loans to fund the work. Victoria Gold's other assets have generated about $185 million, including a $55 million royalty sale completed in April. The Yukon government has provided $185 million of a $220 million loan facility.

A Singapore-based company named Boroo is negotiating to purchase the mine under a three-month exclusivity agreement signed last month. The receiver's report states that any sale agreement will include discussions on how remediation costs will be allocated.

The mine carries at least $540 million in debt. Victoria Gold's assets were valued at $824 million in 2024 before some were sold to fund remediation. If a sale occurs, proceeds will first repay the Yukon government loan and PricewaterhouseCoopers costs, followed by secured creditors owed at least $238 million and unsecured creditors owed $82.7 million.

Officials stated that funding remains available to strengthen oversight of major mines despite other budget reductions. The government created a major mines and technical services branch earlier this year and hired additional staff for inspection and enforcement.

Victoria Gold had posted $104.9 million in security before the failure, an amount that was originally set at $30 million and later increased. Officials said they may review security requirements for future mine operators.