Yukon's Eagle gold mine officially up for sale

The Eagle gold mine is now officially up for sale after an Ontario court approved the mine receiver's application to begin the sale process Wednesday, just over a year after the Yukon mine's failure.

Receiver PricewaterhouseCoopers outlined a two-phase sale process in its submission to Ontario's Superior Court of Justice. The receiver will accept letters of intent until Aug. 6, and then choose qualified submissions to file an actual bid before Oct. 15.

In their initial letters of intent, potential buyers are required to disclose their experience with mining and heap leach facilities. They are also asked to fill out a questionnaire for the First Nation of Na-Cho Nyäk Dun and share a proposed approach to obtaining the First Nation's support. The letter must also share any plans to reopen the mine.

Before submitting a final bid, potential buyers will be asked to meet with the Yukon government and First Nation of Na-Cho Nyak Dun.

In her decision filed to the court, Justice Barbara Conway said that all parties agreed that it's time to put the mine up for sale. She said the First Nation of Na-Cho Nyak Dun did not oppose the sale, but it asked to be kept informed during the sale process. Both the First Nation and Yukon government told the court they won't bid on the mine.

The mine's previous owner, Victoria Gold, ceased operations at the site a year ago after a major heap leach slide released hundreds of millions of litres of toxic cyanide solution into the environment. Work has been underway since then to contain the damage.

The assets for sale include the Eagle gold mine property, the surrounding placer and quartz claims, and some of Victoria Gold's on-site equipment. It also includes the Golden Predator Mining Corporation's assets, a subsidiary of Victoria Gold, including the Brewery Creek mine. 

The receiver doesn't mention how much it expects the mine to sell for in its submissions. In June 2024 — the month the heap leach pad at the mine failed — the total assets were valued at $824 million. 

Ranj Pillai, speaking as Yukon's minister of economic development, issued a statement about the sale on June 26. 

"In granting the order today, the court was satisfied that the process will be robust, fair and comprehensive," Pillai said.

Pillai said this sale is a chance for the Yukon government to recover the "significant financial advancements" it made to pay for remediation at the site.

The Yukon government has lent up to $220 million to PriceWaterhouseCoopers as of March. There are also a number of secured creditors owed more than $173 million. Another $82.7 million is owed to hundreds of businesses with unsecured debt.

If the receiver finds a buyer for the mine, it will go back to the court for final approval. The receiver wants to close the sale by the end of the year.