Mining company Victoria Gold now faces two court applications for receivership over the company and its property, including the Eagle gold mine near Mayo, Yukon.
During a briefing Wednesday morning, the First Nation of Na-Cho Nyäk Dun announced it has asked for a Yukon judge to appoint a receiver. The announcement came hours after Victoria Gold said in a news release that the Yukon government had filed an application in the Ontario Supreme Court of Justice for the same thing.
Chief Dawna Hope said the First Nation believes receivership is “the only way we can ensure the steps necessary to mitigate this disaster are being taken.”
She said while the First Nation supports the Yukon government’s own application, it believes the case should be dealt with in the Yukon.
“Decisions regarding our traditional lands should not be made thousands of kilometres away from our lands and home,” she said.
Earlier Wednesday morning, Victoria Gold said it will oppose the Yukon government’s attempt to appoint a receiver over the company and its property, which includes the Eagle gold mine near Mayo.
In a news release Wednesday morning, the company said it was served with the government’s court application after the market closed on Aug. 13.
“The company intends to respond to oppose the application,” the news release stated.
It did not address Na-Cho Nyäk Dun’s application.
CBC News reached out to the Yukon government for a copy of the court application but was told that according to court rules the document can’t be shared or made public until after the application is heard by the court. The government further stated that the hearing is expected to conclude by the end of the day Wednesday.
If either application is successful, that would mean a court-appointed receiver will oversee the mine’s assets and affairs.
News of the applications come as the company faces significant financial difficulty in the wake of the June 24 heap leach failure that shut down mining activity at the site, and which has led to cyanide leaking into and contaminating nearby waterways.
CBC News previously reported that more than $43.3 million-worth of miner’s liens were registered against Victoria Gold between June 24 and July 31, which suggested the company’s unpaid bills were quickly adding up. A contractor can file a miner’s lien if they haven’t been paid for work or supplies provided at a mine site, which can give them priority over some other creditors.
Prior to that, the company warned that due to financial difficulties it might not have the money to remediate the impacts of its heap leach failure. Following that, the First Nation of Na-Cho Nyäk Dun said it had “lost confidence” in Victoria Gold’s leadership and the Yukon government announced it was stepping in to deal with safety management at the mine.