Operations were suspended at Eagle, Yukon’s only producing gold mine after the company reported on Monday that a failure at its HLP caused an accident and spill that damaged infrastructure. Victoria shares plunged 84% this week, now valuing the company at C$77.8 million. The mine is about 375 km north of Whitehorse.
Investigators have yet to determine the full extent of the damage at Eagle. At the media briefing, they couldn’t say how much contaminated water from the landslide is being contained, how much contaminated water was released and how much cyanide was in the HLP ore at the time of the accident. It’s also unclear how much, if any, contaminated water escaped the property.
The company has a C$104 million security posted with the territory as a potential cleanup fund. But Victoria Gold faces looming debt payments of C$232.5 million as of March 31 that cloud the company’s future with its sole asset closed for the…
