Boroo plans extensive rehabilitation before restarting newly acquired Eagle mine in Yukon
Singapore-based mining and investment company Boroo has announced it will invest more than $1.5-billion in the Yukon-based Eagle gold mine, which it is acquiring through the takeover of Canadian exploration company Victoria Gold Corporation.
Boroo entered into a subscription agreement with PricewaterhouseCoopers as the court-appointed receiver and manager of Victoria.
The $140-million transaction, which is expected to close before the end of the year, follows a court-approved sale process in Victoria's ongoing receivership proceedings and remains subject to approval by the Ontario Superior Court of Justice.
If approved by the court, the transaction will be implemented by way of an Approval and Reverse Vesting Order (RVO). The effect of the RVO will be that Victoria will continue under new ownership and emerge from receivership.
Boroo has already agreed on a comprehensive framework with the Yukon government, which outlines terms around remediation, restart and closure activities of the Eagle mine.
"Our agreement to acquire Victoria and the Eagle gold mine marks a pivotal turning point for this foundational Yukon asset. Over the past year, our technical and environmental teams have spent countless hours on the ground conducting rigorous due diligence to ensure that Eagle can be restarted responsibly and that the site's environmental challenges are addressed," explains Boroo CEO Dulguun Erdenebaatar.
Boroo has a global track record of acquiring complex operations and responsibly unlocking their long-term economic value.
"Our expectation to commit more than $1.5-billion into Canada underscores our dedication to building a long-term enterprise in Yukon," Erdenebaatar says.
In respect of the transaction consideration of $140-million, $40-million comprises an upfront cash payment, with the balance to be paid in staged milestones tied to permitting and commercial production of the Eagle mine.
Boroo has already developed a restart plan that reflects a safe, disciplined and realistic pathway to operation. The company will first stabilise the site, complete environmental rehabilitation activities and then restart the mine, with a future expansion envisioned.
The physical stabilisation works are necessary owing to a failed heap leach facility, which requires active capture and treatment of cyanide-impacted water on site. Boroo will also execute an engineering overhaul covering openpit and waste rock geotechnical stability, mineral resource validation, mobile fleet rehabilitation and the recommissioning of the crushing circuit and adsorption, desorption and regeneration plant.
To prevent future instability, Boroo's plan enforces strict ore characterisation and blending controls, an upgraded operations management system and operational protocols aligned with the International Cyanide Management Code.
