Statement from Minister of Justice and Attorney General on the Government of Yukon’s application for a receiver to be appointed over the assets of Victoria Gold Corporation

Minister of Justice and Attorney General Tracy-Anne McPhee has issued the following statement:

“The Government of Yukon 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.

“The Government of Yukon made an application with the Ontario Superior Court of Justice to have a receiver appointed to take control of the assets of Victoria Gold Corp., including the Eagle Mine, under the federal Bankruptcy and Insolvency Act. After a hearing on August 14, 2024, the court granted an order appointing a receiver as requested by the Government of Yukon’s application.

“Immediate action is required to respond to the heap leach failure and its consequences for the land, water, people and wildlife in the Traditional Territory of the First Nation of Nacho Nyak Dun. The Government of Yukon is concerned that Victoria Gold Corp. does not possess the capacity itself and has failed to carry out the work that is required. The company has failed to comply with several formal directions issued by the Government of Yukon that require specific measures to be undertaken to address human health and safety and environmental risks and impacts.

“The order granted by the Court appoints PricewaterhouseCoopers Inc. as the receiver, who will administer the assets and liabilities formerly under the control of Victoria Gold at the direction of the Government of Yukon and under the supervision of the court. Given the complexity of the work required at the mine site, the Government of Yukon and PricewaterhouseCoopers have also engaged Parsons Inc., which will serve as Lead Environmental Consultant to advise PricewaterhouseCoopers in its role as receiver, including complying with the directions issued by the Government of Yukon.

“The Government of Yukon has entered into an agreement with PricewaterhouseCoopers to advance funding required to undertake mitigation work. The money advanced by the Government of Yukon for this work will constitute a debt owed to government, which is to be recovered from the assets of Victoria Gold Corp. As receiver, PricewaterhouseCoopers will administer repayment of this debt, which will be prioritized as compared to other debts owed by Victoria Gold Corp in accordance with the court order and with the priority given to the costs required for the environmental protection as provided for in the Bankruptcy and Insolvency Act.

“The Government of Yukon has chosen to pursue this course of action for several reasons. Following the company’s failure to fulfil inspectors’ directions, our government has ended reliance on Victoria Gold Corp. to take the appropriate actions in response to the heap leach failure. This legal action provides a pathway for the required costs of mitigation to be recovered from the assets of the company responsible for the damage to the environment. In addition, it provides a clear and public format for all affected parties to register their concerns and interests and to bring them forward in a court-supervised process.

“Going forward, we will continue to communicate closely with the First Nation of Nacho Nyak Dun as we work with the receiver and Lead Environmental Consultant to undertake the required mitigation work. We will continue to use the legal mechanisms at our disposal to hold Victoria Gold responsible for the cost of this work and for the protection of human health and safety and the environment.”