[caption id="attachment_1003722359" align="aligncenter" width="473"] 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.