The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Victoria Gold Corp. June 7 reported that a reduction in the Yukon corporate tax has improved the economics of its Eagle Gold project.
In April, Yukon Finance Minister Sandy Silver announced that Yukon's general corporate tax rate will be lowered from 15 to 12 percent.
A recalculation on the economic parameters detailed in a 2016 feasibility study for Eagle Gold shows that the after-tax net present value (5 percent discount for developing a mine there increases from C$508 million to C$527 million under the new tax structure; and the after-tax internal rate of return increases from 29.5 percent to 30 percent.
"As a Yukon resident and CEO of Victoria Gold, I am very pleased to see the current administration investing in the future of the territory by supporting current and future businesses," said John McConnell. "With this tax decrease the new government is helping to ensure a vibrant mining industry well into the future."
An economic impact study completed by the Centre for Spatial Economics concluded that development and operation of the Eagle Gold Mine would produce a cumulative C$1.5 billion of gross domestic product in the Yukon over the life of the operation.
On average, there will be 250 additional persons per year employed in the territory over the life of the mine, with roughly 175 of those persons being directly sourced from the Yukon and employed on the mine site.
-SHANE LASLEY
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