Judge approves process to put Yukon Eagle Gold Mine in Yukon up for sale

An Ontario judge has approved a request from the court-appointed receiver to begin the process to sell the gold mine at the centre of a disaster north of Mayo, Yukon.

A statement from Yukon Premier Ranj Pillai says selling the Eagle Gold Mine where millions of tonnes of cyanide-soaked ore spilled last year is a chance for the government to get back the "significant" cash it paid to respond to the emergency.

Pillai says the judge's ruling is an important first step and any final decision on a buyer will still require approval by the court, based on the receiver’s recommendation.

The sale process begins with months of advertising and vetting of potential buyers.

Court documents show the deadline to pick a successful bid for the mine is Nov. 5.

The plan says the sale is expected to close at the end of the year, after it is approved by the court.

“As both the lender to the receiver and the territory’s main mining regulator, the Government of Yukon provided input on the terms of this process and will work closely with the receiver and its financial adviser as the process unfolds over the coming months," Pillai said in the statement.

He said the government's focus is on protecting the interest of Yukoners.

"That includes communicating criteria that reflect important priorities to the Government of Yukon, that can be considered by the receiver in identifying a reputable, experienced and well-resourced operator who is committed to upholding strong economic, social and governance principles," he said.