Monday, April 28, 2025

Latest

Sabre Gold Sells Brewery Creek Mine, Exploration Assets To Victoria Gold For $13.5 Million

Sabre Gold Mines (TSX: SGLD) is receiving a much needed cash infusion after the sale of its Golden Predator Mining subsidiary to that of Victoria Gold Corp (TSX: VGCX).

The transaction, valued at $13.5 million, will see Victoria Gold acquire the Brewery Creek property, as well as the Gold Dome and Grew Creek exploration properties. Brewery Creek is a formerly producing heap leach project in the Yukon, with a mineral resource of 1.4 million ounces of measured and indicated gold at 1.03 g/t, and 1.02 million inferred ounces of gold at 0.88 g/t.

Brewery Creek was also the subject of a 2022 preliminary economic assessment, which assigned a net present value (5%) of US$112 million after taxes at a gold price of $1,700 per ounce. The assessment estimated a mine life of 8 years at an average AISC of US$966 per ounce.

The transaction will see Victoria Gold pay a total of $13.5 million for the assets, all of which are located in the Yukon. Initial consideration is to consist of an initial $1.5 million in cash and an additional $7.0 million, payable in cash or shares at Victoria Gold’s discretion, upon closing. A further $3.0 million is to be paid on the 12 month anniversary of closing, of which up to $2.5 million may be in shares, and a final $2.0 million, of which up to $1.5 million may be in shares, will be paid on the 24 month anniversary of closing.

READ: ATAC Resources: Victoria Gold Takes Public It’s Attempt To Acquire Firm

The transaction closed on September 14. Notably, Golden Predator had non-capital losses of $44 million, for which Victoria Gold expects certain tax-related synergies.

Sabre Gold obtained the Golden Predator subsidiary via a business combination in 2021, which saw Golden Predator and Arizona Gold come together to form Sabre Gold. At the time, the duo stated the merger would create a diversified near-term gold producer that would develop the Copperstone mine in Arizona followed by the Brewery Creek mine in the Yukon. Following the close of the transaction, Sabre Gold will now be solely focused on the Copperstone project.

Sabre Gold last traded at $0.13 on the TSX, with a market capitalization of just $9.3 million.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Bell Q3 Earnings: Massive Impairments. Guidance Cuts. A Mess.

Alamos Gold Q3: Record Revenue & Production Amid Rising Costs

The Junior Mining Market Is Back

Recommended

Germany Looks To Modernize Military Recruitment But Stops Short of Conscription

First Majestic Silver Posts Topline Revenue Of $146.1 Million In Q3 2024

Related News

Victoria Gold Mine Collapse Causes Pause In Mining And Exploration In Entire Region

The collapse of Victoria Gold’s (TSX: VGCX) heap leach pad at its Eagle Mine in...

Tuesday, July 23, 2024, 10:22:23 AM

Yukon Government Seeks To Appoint Receiver Over Victoria Gold

Victoria Gold (TSX: VGCX) appears to have lost control of the situation at its Eagle...

Wednesday, August 14, 2024, 09:13:24 AM

Victoria Gold CEO Reflects on “Mistake” Amid Yukon Cyanide Spill

Victoria Gold (TSX: VGCX) is grappling with the aftermath of a catastrophic cyanide spill at...

Friday, August 16, 2024, 02:18:00 PM

Victoria Gold Produces 26,759 Gold Ounces, Posts $62.7 Million In Revenue For Q1 2021

Victoria Gold Corp. (TSX: VGCX) announced this morning its operational and financial results for Q1...

Friday, May 14, 2021, 09:13:15 AM

Heap Leach Failure at Eagle Gold Mine: No Injuries Reported, Investigations Ongoing

Victoria Gold Corp (TSX: VGCX) has confirmed that no injuries were associated with the failure...

Monday, June 24, 2024, 08:06:15 PM