Proposed layout for Victoria Gold’s Eagle project in Yukon. (Image: Victoria Gold Corp.)
YUKON – Montreal’s Osisko Gold Royalties has acquired a 5% net smelter return on the Dublin Gulch property belonging to Victoria Gold Corp. of Toronto. Dublin Gulch is part of Victoria’s Eagle gold project about 85 km by road north of the village of Mayo.
Osisko says it will pay C$98 million for the royalty.
The Eagle project is shovel ready – the most advanced project in the region – and is on track to be the largest gold producer in Yukon history. An open pit mine, heap leach and carbon-in-leach processing plant are planned. It could produce 200,000 oz. of gold annually beginning in 2020 at an operating cost of about US$550 per oz.
Osisko has also agreed to purchase 100 million common shares of Victoria Gold at a price of C$0.50 each. That gives Victoria C$140 million with which to continue moving the project forward.
Victoria has also arranged a C$505 million financing package with Orion Mine Finance and Caterpillar Financial Services for construction.
More information about the Eagle project is available at www.VitGoldCorp.com.