An extension to the Eagle Gold Mine’s receivership loan is adding another layer to an already complex chapter in Yukon mining, as the territory pushes the credit agreement to April 1, 2026, while the future of the site remains unsettled.
The decision keeps the maximum loan at $220 million, with no new funding added, according to a Jan. 5 Yukon government news release.
The extension has been confirmed as stabilization work continues on the heap leach pad, and the court-appointed Receiver, PricewaterhouseCoopers, carries on with water monitoring and the ongoing process of trying to sell the mine.
A closing date has not been set, and conversations with potential bidders remain ongoing, according to the news release.
The sales process has stretched out because qualified bidders needed more time for due diligence, including site visits and technical presentations, Energy Mines and Resources spokesperson John Thompson told the News.
Thompson described the sale as a crucial step in responding to the heap failure and ensuring that whoever takes over the site is capable, responsible, and well-resourced.
“The Government of Yukon is a key stakeholder as the receivership lender and the territory’s main mining regulator. We’ve provided input into the process to help ensure that the interests of Yukoners are protected. This includes setting out criteria to ensure that any potential buyer is responsible, experienced, and well-resourced,” Thompson said.
The Yukon government will not conduct an updated valuation of the mine, Thompson said. Instead, the value assessment is left to the bidders themselves, who submit proposals through the Receiver’s process and will remain unchanged as the sale continues.
The territory has provided $175 million in loan funding for remediation work through October 2025, Thompson said. About 60 per cent of that amount comes from the mine’s security, with the remainder drawn from Yukon government funds.
“The Yukon government has committed to providing up to $220 million as a loan to the Receiver for the remediation work. This commitment was made on Nov. 28, 2024, and has not changed as part of this extension,” Thompson said.
He added that it is too early to know how much of the loan the territory will recover. Thompson said that the government cannot yet determine what long‑term liabilities might fall to taxpayers if no buyer emerges, as the government is letting the sales process run its course before drawing conclusions.
The loan is secured by a court‑ordered super‑priority charge on Victoria Gold Corporation’s assets. According to the government news release, the loan is recorded as a receivable, offsetting the impact on the operation and maintenance appropriation and leaving no effect on the territory’s surplus or net financial debt.
The Eagle Gold Mine has been under receivership since 2024, following the heap leach failure that triggered a regulatory and financial response. Stabilization work continues at the site as the Receiver manages operations and the territory waits for clarity on the mine’s next chapter.
The government said in the news release that its focus remains on ensuring that Yukoners’ interests are protected and that any eventual buyer is equipped to take on the responsibility of the site. The extended credit agreement gives the Receiver more time to complete that work, even as the long‑term outcome remains uncertain.
Contact Jake Howarth at jake.howarth@yukon-news.com