The Yukon government is refusing to comment on a legal challenge it has filed to remove Victoria Gold Corp. from the management of the Eagle Gold Mine north of Mayo.
“We do have an application that is currently before the courts, and as such we don’t have any further comments on it at this time,” Drew MacNeil, the director of policy and communications for the territorial Department of Justice, advised The Yukon Star at 9 a.m. today.
A spokesperson for the cabinet’s communications staff said the government could have more information after a hearing ends this afternoon.
Victoria Gold is headquartered in Toronto, which is why the application was filed in Ontario.
Late this morning, it was announced in Whitehorse that the First Nation of Na-Cho Nyäk Dun has filed a similar application in Yukon Supreme Court to address what it calls an “environmental catastrophe” caused by the heap leach pad failure at Victoria Gold’s Eagle Gold mine on June 24.
Unlike the Yukon government, the First Nation provided extensive comments on its legal application.
“Yesterday (Tuesday), the First Nation of Na-Cho Nyäk Dun (FNNND) filed a receivership application in Yukon Supreme Court to address the environmental catastrophe caused by the heap leach pad failure at Victoria Gold’s Eagle Gold Mine on June 24.
“The application we filed calls for a third party to be appointed as receiver to take over management of the company and ensure the necessary steps are undertaken to contain and remediate the millions of litres of cyanide and other contaminants that are being released into the environment,” the First Nation said.
“The Yukon Government filed a similar application in Toronto last night, also asking for a court-appointed receiver. FNNND supports the step that the Yukon Government has taken and supports Yukon Government’s request for a receiver to be appointed immediately.”
The First Nation added “the most urgent priority is the removal of Victoria Gold’s current management and the appointment of a receiver. This step by the Yukon Government is welcome, and overdue.”
As they have stated before, First Nation officials said “we have lost all confidence in Victoria Gold’s ability to effectively manage the response to this disaster.
“We are grieving the impacts of this catastrophic failure on our lands, waters, and wildlife,” said Chief Dawna Hope.
“The health and integrity of our lands are our top concern. A change in control at the site is desperately overdue.
“Victoria Gold and the status quo have failed — and are failing — our nation and all Yukoners,” the chief said.
“For nearly two months we have seen our lands and waters suffer in the face of an inadequate response from the company. That stops now. We are glad that we now have Yukon Government’s support in achieving our common goal of having Victoria Gold’s management removed.”
A statement from Victoria Gold says it has been served with an application by the territory seeking the receivership and “related relief” after the failure in June.
The company says it intended to oppose the application served after the close of markets on Tuesday.
Yukon government officials have said some water samples taken downstream from the mine site have shown cyanide levels that “significantly exceed” guidelines for aquatic life.
The Yukon Party had a few thoughts on the move as well.
“We are aware of the August 14 news release from the Victoria Gold Corporation that indicates the Yukon Government has filed an application to appoint a receiver over the company and its property,” the official Opposition said this morning. “Other than this news release, we have no other information.
“It is incumbent on the Yukon Government to explain why they have taken this court action. The position of the Yukon Party official Opposition remains that the best possible outcome is for the company to retain control of the site, complete and pay for the environmental clean-up, and develop a plan to bring the mine back into production.
“In our view, this is the best option to ensure Yukoners can go back to work, that Yukon businesses will get paid, and that Yukon taxpayers will not be on the hook for the environmental clean-up.”
The Yukon Chamber of Mines also provided its thoughts.
“The Yukon government’s announcement today was unexpected, and we are awaiting further details on the specifics of the filing. However, as an industry, we share a common commitment: protecting the environment and ensuring the safety of the communities where we operate,” the chamber said. “We fully support an independent investigation to understand the cause of this unfortunate incident.
“We urge the Yukon government to promptly initiate a comprehensive independent investigation of the incident, and we are committed to providing all necessary support expected from the industry to facilitate this process,” said the chamber.
The company also posted a notice on its website about the legal move.
“Victoria Gold Corp. announces today that after the close of markets on August 13, 2024, (it) was served with an application by the Yukon Government (the “Application”) seeking, among other things, the appointment of a receiver over the company and its property and related relief pursuant to the Courts of Justice Act (Ontario), such application being returnable before the Ontario Superior Court of Justice (Commercial List) on August 14, 2024. The company intends to respond to oppose the application.”
According to a federal government website, a receiver is a third party appointed by a court through a court order or by a secured creditor through a letter of appointment to:
- take control of property;
- supervise liquidation proceedings; and
- remit the proceeds according to priorities established by common or statutory law.
There are two types of receivers: a court-appointed receiver and a privately appointed receiver, appointed by a secured creditor. Most such applications come from companies or organizations who are owed money.
John McConnell, the president of Victoria Gold, spoke to two Yukon media outlets this week about the overall situation, particularly the 68 dead fish discovered in Haggart Creek following the discharge of treated water from the site.
He said he doubted the discharge was responsible for the dead fish, although the Yukon government says it was likely caused by cyanide poisoning – and hasn’t occurred since the discharge stopped.
“We don’t necessarily think it’s related to cyanide,” McConnell said. “We’ll get to the bottom of this.”
He suggested chlorine, or water hardness, is a more likely explanation.