Yukon Gold Mine Company Could Go Bankrupt, Alerted Environmental Advocacy Groups

SEATTLE (Scrap Monster): According to speculations by certain environmental advocacy groups, Victory Gold- the company that owns the Eagle Gold mine in the Mayo mining district of central Yukon, may soon go bankrupt.

In a cyanide spill incident that took place on June 24, 2024, the heap leach pad at the Yukon gold mine had experienced failure. It had caused serious damage to infrastructure and a portion of the failure had left containment. Following this, operations at the mine were temporarily suspended. A statement released by the company a few days back, noted that it is uncertain with regards to the future of the mine.

There is no assurance as to whether the company will receive necessary authorizations to enable restart of production. The financial capability of the company to carry out necessary repairs to the damaged equipment and remediate impacts caused by the incident to restart production is also in doubt.

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According to Jamie Kneen, national program co-lead at non-governmental watchdog, Mining Watch Canada, the company’s money was “tied up” in the heap leach pad. The company does not run other operations and does not have the cash flow. The cleanup costs would be significantly more than initial estimates, it added.

The Yukon branch of the Canadian Parks and Wilderness Society too expressed doubts on the company’s ability to survive.