Singapore-based company Boroo Pte. Ltd., known for its mining ventures in Mongolia and Peru, has entered into an agreement with PricewaterhouseCoopers (PwC) to purchase the troubled Eagle gold mine in central Yukon for $140 million. The deal includes a commitment from Boroo to invest $1.5 billion to revive operations at the mine. Michelle Grant from PwC described the acquisition as a significant turning point during a recent press briefing.
The purchase agreement, still pending court approval expected by year-end, involves an initial payment of $40 million by Boroo, with an additional $100 million to follow as the mine achieves specific milestones related to permitting and production. The sale follows the closure of the Eagle mine over two years ago due to a catastrophic incident at a heap leach facility that led to the release of harmful cyanide into the environment, prompting an extensive cleanup effort and Victoria Gold Corp. going into receivership.
Yukon’s Economic Development Minister, Jen Gehmair, expressed optimism about the new deal, highlighting that once finalized, Boroo will assume responsibility for all operations and remediation at the site, alleviating financial burdens on Yukon taxpayers. The government anticipates full reimbursement for its emergency cleanup expenditures. PwC had been spending approximately $11 million monthly on remediation efforts, partly funded by a $220 million loan from the Yukon government secured earlier.
Gehmair outlined Boroo’s plan to allocate around $800 million from 2027 to 2029 for site cleanup, water treatment, stabilization, and operational restoration, which is expected to generate hundreds of job opportunities and enhance the local economy. The minister emphasized the sale’s broader implications for signaling confidence to potential investors in Yukon as an attractive investment destination.
Ted Laking, the territory’s mines minister, echoed Gehmair’s sentiments, describing the sale as the optimal outcome for Yukon residents and the environment, relieving the government of substantial future remediation and closure costs that could strain public finances. He emphasized that regulatory standards for restarting mining activities would remain unchanged, with ongoing enhancements to regulatory frameworks based on a comprehensive review of the Eagle mine incident.
While a definitive timeline for recommencing operations at the Eagle mine is not yet established, Boroo anticipates a four-year permitting process. Details of the sale agreement and operational restart schedule are expected to be disclosed in the near future, according to PwC.