Yukon’s Victoria Gold Corp. (TSX: VGCX) has obtained three properties in the territory through the acquisition of Golden Predator Mining, a former subsidiary of Sabre Gold Mines Corp. (TSX: SGLD).
Through the deal announced Thursday, Victoria is paying Sabre $13.5 million in cash and stock for the company and now owns the Brewery Creek, Gold Dome and Grew Creek properties. Sabre will be using the funds to develop its Copperstone gold mine in west-central Arizona.
“Selling Brewery Creek allows Sabre to place its attention and focus solely on the fully permitted Copperstone Project in Arizona. With the company re-capitalized we look forward to furthering the development of Copperstone and working towards gold production,” said Sabre’s President and CEO Andrew Elinesky.
The Beaver Creek project is a past-producing heap leach operation that was temporarily shut down in 2002, located 55 kilometres east of Dawson City and 120 kilometres west of the Eagle mine. The site, which is the largest of the three properties, spans 180 kilometres and is estimated to contain 1.14 million ounces of measured and indicated gold — based on a mineral resource estimate from 2020.
It sits on the traditional territory of the Tr’ondëk Hwëch’in and Na-Cho Nyäk Dun First Nations.
Victoria’s CEO John McConnell says the company is pleased to expand its footprint and asset base in the territory. “With our track record of exploration, permitting, development and operations in Yukon, we believe we can add value to this portfolio of assets,” said McConnell
Exciting news on the acquisition by @VictoriaGold of Brewery Creek expanding their footprint in Yukon!#InvestYukon #YukonGold #Gold https://t.co/o5LAaRe0S6
— Invest Yukon (@InvestYukon) September 14, 2023
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Victoria says Golden Predator has reported non-capital losses of $44 million and that it expects certain tax-related synergies to be linked to the transaction.
The Gold Dome and Grew Creek properties acquired by Victoria span 95 and 135 square kilometres respectively. Gold Dome is situated 25 kilometres west of Mayo and Grew Creek is located 6 kilometres west from the remote community of Ross River.
Victoria recently completed 13,220 meters of diamond drilling at the Raven target within the Dublin Gulch property hosting the territory’s largest mining operation — the Eagle Gold Mine.
The company reported three notable intercepts from the drill program: 7.80 g/t Au over 6.0 metres, 20.20 g/t Au over 1.1 metres and 3.45 g/t Au throughout a 27.5 metre interval.
Victoria Gold shares rose by 3 per cent Friday to $6.51 and Sabre stock rose by 7.7 per cent to $0.14 on the Toronto Stock Exchange.
rowan@mugglehead.com
