The Yukon Party says Vicotria Gold Corporation should retain control of the mining site.

Friday, 16 August 2024 15:25

The government’s decision raises questions that require additional public scrutiny and explanation to Yukoners.

The Yukon Party Official Opposition is asking for the immediate recall of the Liberal government’s application for a receiver to be appointed over the assets of Victoria Gold Corporation.

In a press released statement, the Yukon party official opposition said it appears the Liberal government’s management of the Eagle Mine accident has resulted in the worst possible outcome for Yukoners, Yukon businesses, and taxpayers.

On August 14, 2024, an Ontario Supreme Court of Justice granted an order appointing a receiver to the Government of Yukon.
PricewaterhouseCoopers Inc. is the appointed receiver to the of Yukon government. They will administer the assets and liabilities formerly under the control of Victoria Gold at the direction of the Yukon government and under the supervision of the court.

According to McPhee, the Yukon Government has lost confidence in the management team of Victoria Gold Corporation to take the human health and safety and environmental consequences of the June 24, 2024, heap leach facility failure seriously or to respond with the urgency the situation demands. She said Victoria Gold Corp. does not possess the capacity itself and has failed to carry out the work that is required to address human health and safety and environmental risks and impacts.

The move by the Liberal government is not sitting well with the Yukon Party as they believe the best possible outcome was for the company to retain control of the site, complete and pay for the environmental clean-up, and develop a plan to bring the mine back into production so Yukoners can go back to work, and Yukon businesses paid. The Liberal decision places the liability for the site entirely on taxpayers and increases the risk creditors and contractors will not receive value for their outstanding accounts, the Yukon Party said.

Additionally, the Yukon Party said the taking over the mine by the Liberal government, provides no additional certainty that the environmental concerns will be adequately addressed as the mine site still appears to be a dangerous and complex work site, and the government is yet to construct the berm they assumed responsibility for a number of weeks ago.

The Yukon Party said the government’s decision raises questions that require additional public scrutiny and explanation to Yukoners. These questions include how this improves the environmental response? What procurement process was used to retain the services of the receiver and the environmental consultant? What does this mean for Yukon contractors and suppliers who have outstanding accounts? What, if any, is the process to be sold and re-opened?

An appointed receiver is a third party appointed by a court through a court order or by a secured creditor through a letter of appointment to take control of property, supervise liquidation proceedings, and remit the proceeds according to priorities established by common or statutory law.
In a developing news, Victoria Gold Corp. board has resigned, and according to the Victoria Gold CEO John McConnell, the mining company is "done."

More details coming soon.

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