The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Golden Predator Yukon assets are now under Victoria's wing North of 60 Mining News - September 15, 2023
Brewery Creek is home to a former Yukon gold mine that produced roughly 280,000 oz of gold over seven years of mining that began in 1996.
In a sudden and surprising announcement, Victoria Gold Corp. Sept. 14 announced the acquisition of Sabre Gold Mines Corp.'s Yukon assets, which include the past producing Brewery Creek gold mine property held by subsidiary Golden Predator Mining Corp., as well as the Golden Dome and Grew Creek exploration properties.
"With the acquisition of Sabre's Yukon assets, we are pleased to be expanding our footprint and asset base in our own backyard," said McConnell. "With our track record of exploration, permitting, development and operations in Yukon, we believe we can add value to this portfolio of assets."
A past-producing heap leach project that produced roughly 280,000 ounces of gold over seven years of mining that began in 1996, Brewery Creek covers a 181-square-kilometer (70 square miles) land package located in northwestern Yukon, approximately 55 kilometers (34 miles) east of Dawson City, and roughly 120 kilometers (75 miles) west of Victoria's own Eagle Mine.
Following the 2021 merger between Golden Predator and Arizona Gold Corp., the emergent Sabre Gold reevaluated Golden Predator's previous preliminary assessment for developing an open-pit, heap-leach gold mine at Brewery Creek.
According to a calculation completed in December, Brewery Creek hosts 34.5 million metric tons of measured and indicated resources averaging 1.03 grams per metric ton (1.14 million oz) gold, plus 35.9 million metric tons of inferred resource averaging 0.88 g/t (1.02 million oz) gold.
In addition to Brewery Creek, Vicotria also acquired full ownership of two other Yukon gold projects held by Golden Predator.
The road-accessible Gold Dome property covers 95 square kilometers (37 square miles) approximately 25 kilometers (16 miles) west of the village of Mayo, Yukon, and the 135-square-kilometer Grew Creek property is located on the Robert Campbell Highway, approximately six kilometers (four miles) west of Ross River, Yukon.
To acquire Golden Predator and its Yukon assets, Victoria agreed to pay Sabre C$13.5 million (US$10 million), payable as follows:
• An initial cash payment of C$1.5 million (US$1.1 million) in cash, plus C$7 million (US$5.2 million) in cash or Victoria shares.
• C$500,000 in cash, plus C$2.5 million in cash or Victoria shares on the first anniversary of closing.
• C$500,000 in cash, plus C$1.5 million in cash or Victoria shares on the second anniversary of closing.
With all required approvals for the transaction already obtained, the deal closed today, making Golden Predator the new subsidiary of Victoria.
The company also reports that Golden Predator reported a non-capital loss of C$44 million, and Victoria expects certain tax-related synergies to be associated with the transaction.
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