A court has raised PricewaterhouseCoopers’ (PwC) borrowing limit to C$105 million ($74m) to fund the cleanup of Victoria Gold’s Eagle mine in Yukon as costs are said to range from C$100 million to C$150 million.
The Monday order from the Ontario Superior Court of Justice also allows PwC to sell non-core assets without further court approval. PwC, as receiver handles financial restructuring and the environmental cleanup from the mine’s catastrophic heap leach pad failure in June.
The site is under pressure as temporary containment ponds holding 309,000 cubic metres of contaminated water are near capacity, PwC warned in a Nov. 29 update. Storage constraints will persist until regulators approve the discharge of treated water.
Upgrades to the water treatment plant are ongoing, with final lab tests underway to confirm compliance. “We are working to ensure continuous operation through the winter,” PwC said, noting that icy winter weather deadlines loom. PwC’s update on Thursday about the receivership said the newly approved funds are critical to avoiding further environmental damage, it said.
The leach pad failure in June released 4 million tonnes of material with ore and cyanide-containing solution. It ruined the company and moved the Yukon government to seek a court order appointing PwC as receiver amid frustration with Victoria Gold’s cleanup efforts.
The receiver has installed 18 groundwater wells and 11 pumping wells to intercept contaminated water. Contractors finished a safety berm in late October. They are stabilizing the heap leach pad, guided by consultants preparing a full analysis of its condition.
Victoria Gold owed C$232.5 million to secured creditors and C$82.7 million to over 400 unsecured creditors as of March. The company’s board resigned a day after PwC was made receiver.
PwC dismissed former CEO John McConnell just days later.
An independent probe into the heap leach failure is underway. Its findings should inform regulatory changes. The leach pad failure at the new mine has worried Yukon operators. It has increased scrutiny of heap leach projects from investors and regulators.
While remediation dominates the agenda, the mine’s future remains uncertain. The Yukon government hasn’t ruled out a restart. But, the First Nation of Na-Cho Nyak Dun, whose traditional lands host the mine, has called for tighter oversight and a pause in mining.
For now, PwC’s focus remains on stabilizing the site and mitigating environmental damage, it stated.
