Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) is pleased to announce the acquisition of Sabre Gold Mines Corp.’s (TSX-SGLD) (“Sabre”) Yukon assets (the “Transaction”, or the “Acquisition”), via the acquisition of Sabre’s wholly owned Yukon subsidiary, Golden Predator Mining Corp. (“Golden Predator”). All currency amounts listed in Canadian dollars.
Victoria has acquired Sabre’s 100% interest in the Brewery Creek property, as well as the 100%-owned Gold Dome and Grew Creek exploration properties.
Mr. John McConnell, President and CEO of Victoria commented: “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.”
Brewery Creek is a formerly producing heap leach project, covering 181 square kilometers, located in northwestern Yukon, approximately 55 kilometers east of Dawson City, Yukon and approximately 120 kilometers west of Victoria’s Eagle Gold Mine. The property is the subject of a NI 43-101 Technical Report which sets out a Mineral Resource Estimate1 of 34.5 million tonnes of Measured and Indicated Mineral Resources grading 1.03g/t Au, containing 1.14 million ounces of gold and 36.0 million tonnes of Inferred Mineral Resources grading 0.88g/t Au, containing 1.02 million ounces of gold (effective date of Mineral Resource Estimate: May 31, 2020). Brewery Creek is also the subject of a Preliminary Economic Assessment1 with an effective date of January 18, 2022.
The Gold Dome property is road accessible and covers 95 square kilometres and is located approximately 25 kilometres west of the village of Mayo, Yukon. The Grew Creek property covers approximately 135 square kilometres and is located on the Robert Campbell highway, approximately 6 kilometres west of Ross River, Yukon.
Golden Predator has reported non-capital losses of $44 million. Victoria expects certain tax-related synergies to be associated with the Transaction.
Transaction Details
The Acquisition was completed pursuant to the terms of a share purchase agreement between Victoria and Sabre, whereby Victoria acquired all of the issued and outstanding shares of Golden Predator, a wholly owned subsidiary of Sabre, which indirectly holds a 100% interest in the Brewery Creek property, as well as certain other mineral assets that include the Gold Dome and Grew Creek exploration properties. After giving effect to the Acquisition, Golden Predator is now a wholly owned subsidiary of Victoria.
