Victoria Gold Corp.’s already-troubled financial state has been exacerbated by companies filing almost $43 million in liens against it.
As of earlier this week, 11 liens had been filed, according to territorial government records. The Yukon Star has obtained these records from the government.
The liens are from companies located inside and out of the Yukon. Whitehorse lawyer James Tucker is handling many of the cases.
He told the Star Thursday morning he had talked with his clients, who have declined to comment on the court proceedings.
Nevertheless, their identities and the amount they have claimed against Victoria Gold are noted in the documents.
North 60 Petro has filed for more than $4.4 million. Nuway Crushing’s claims amount to more than $3.6 million.
Locally, the biggest claim comes from Pelly Construction Ltd., with more $9.15 million.
Mayo Fuel Supply and Transport has filed an $8-million claim, while Yukon Energy is pursuing nearly $700,000.
Finning International, a supplier of heavy equipment in Alberta, is claiming nearly $13 million in its application.
There are smaller claims as well, including Whitehorse’s Ajax Steel, which has filed for approximately $55,000.
The Yukon NDP has issued a general comment on the issue of mining liens without having access to the files obtained by the Star.
“The Yukon NDP is renewing its longstanding call to strengthen territorial legislation to protect Yukon businesses owed money by bankrupt mining companies,” the statement reads.
Party leader Kate White pressed the issue again on Thursday following news of the multimillion-dollar liens filed against Victoria Gold. A heap leach pad landslide at its Eagle Gold Mine north of Mayo triggered an environmental catastrophe on June 24.
“If Victoria Gold goes bankrupt, our mining laws will leave the many Yukon contractors who kept the Eagle Mine running to be paid out last, ensuring they receive pennies on the dollar,” White said.
In particular, the laws allow bankrupt mining companies to pay back loans to their shareholders as a priority before Yukon contractors and suppliers are paid what they’re owed.
“I was in the room when the receiver for Wolverine mine told Yukon business people what they were getting paid on their debts, and I still remember their faces,” White recalled.
“I was very vocal about this issue when Wolverine went bankrupt, and again last year when Minto bailed on its financial obligations to Yukon businesses. We called on the Yukon Party and later on the Yukon Liberals to change the act and they didn’t, because they’re wedded to Big Mining.”
The Yukon Party had no comment on the liens for the Star.
Production ceased and most of the mine’s employees were laid off following the landslide.
