Victoria Gold Corp. announced the acquisition of Sabre Gold Mines Corp.’s Yukon properties via Golden Predator Mining Corp., Sabre’s fully-owned Yukon subsidiary. All currency values are in Canadian dollars.
Image Credit: Victoria Gold Corp.
Victoria has purchased Sabre's entire stake in the Brewery Creek property, as well as its whole stake in the Gold Dome and Grew Creek exploration sites.
With the acquisition of Sabre’s Yukon assets, we are pleased to be expanding our footprint and asset base in our own backyard. With our track record of exploration, permitting, development and operations in Yukon, we believe we can add value to this portfolio of assets.
John McConnell, President and Chief Executive Officer, Victoria Gold Corp
Brewery Creek is a 181-square-kilometer heap leach project located in northwestern Yukon, roughly 55 km east of Dawson City, Yukon, and 120 km west of Victoria’s Eagle Gold Mine.
The property is the subject of an NI 43-101 Technical Report, which includes a Mineral Resource Estimate of 34.5 million tons of Measured and Indicated Mineral Resources grading 1.03 g/t Au and containing 1.14 million ounces of gold, as well as 36.0 million tons of Inferred Mineral Resources grading 0.88 g/t Au and containing 1.02 million ounces of gold. Brewery Creek is also the subject of a Preliminary Economic Assessment1, which will take effect on January 18th, 2022.
The Gold Dome property is accessible by road and comprises 95 square kilometers. It is located roughly 25 km west of Mayo, Yukon. The Grew Creek property is around 135 square kilometers in size and is located on the Robert Campbell route, about 6 km west of Ross River, Yukon.
Non-capital losses of $44 million have been disclosed by Golden Predator. Victoria anticipates that the Transaction will result in certain tax synergies.
Transaction Details
The acquisition was completed in accordance with the terms of a share purchase agreement between Victoria and Sabre, under which Victoria acquired all of the issued and outstanding shares of Golden Predator, an entirely owned subsidiary of Sabre that indirectly owns a 100% interest in the Brewery Creek property, as well as certain other mineral assets such as the Gold Dome and Grew Creek exploration properties.
Golden Predator is currently a completely owned subsidiary of Victoria following the completion of the acquisition.
Victoria will pay a total of $13.5 million for Golden Predator, which will be paid as follows:
- The initial price is $1.5 million in cash, with an additional $7.0 million in cash or Victoria shares available at Victoria’s discretion (“elective portion”) due at closing
- $0.5 million in cash, and an additional $2.5 million in cash or Victoria Shares, due on the 12-month anniversary of the closing date
- $0.5 million in cash, and another $1.5 million in cash or Victoria Shares, payable on the 24-month anniversary of the closing date
Victoria has paid the elective share of the initial payment in cash from its treasury.
The Transaction has received all necessary approvals, and it will close on September 14th, 2023.