Victoria Gold has signed an agreement to purchase power from Yukon Energy, and connect to the territory's electrical grid.
Yukon Energy says it's signing a deal with Victoria Gold to supply grid power to the Eagle Gold Mine near Mayo.
The corporation says the deal was signed on Friday, and submitted to the Yukon Utilities Board the same day for review.
If approved by the board, the Power Purchase Agreement would contribute upwards of $100 million to Yukon Energy over the expected 10 year mine life, which would result in a one to two per cent reduction of rates for other consumers.
Victoria Gold says it will cover the full connection costs, and the majority of a new substation, along with Yukon Energy's negotiation fees, totalling over 11 million.
The mine will connect to the existing Stewart-Keno Transmission line, which can meet the mine's needs for the first few years, however, the corporation will seek out government funding to replace the line, as it's at the end of life.
Yukon Energy says once connected to the grid, the corporation will help meet demand through mix of hydro, and L-N-G generation, with the thermal generation being reduced once more renewable energy is added to the system.