With US$40 million in the bank and $220 million under negotiation, Victoria Gold needs another $40 million to start construction at its Eagle Gold Project near Mayo, says the company president.

John McConnell explained Tuesday he is confident the company will close the deal on the $220-million arrangement announced last week.

It may take up to three months, but in the meantime, Victoria Gold is talking to other potential investors about raising the remaining $40 million it needs to build the open pit mine, he said.

McConnell said if they raise the additional $260 million on top of the $40 million they have, they could very well start construction in May, as the Eagle project is already fully permitted.

“A year ago, people would not take my calls in terms of raising money, and now they are calling me,” he said.

McConnell said if the company was to begin construction this spring, it would be pouring gold next year.

Peak employment during construction is expected to reach 400, he said, adding it would be the same amount of employment during production.

McConnell said while the mine life is currently pegged at 10.5 years, the company is quite confident that with additional exploration, it will be mining at the site for 15 to 20 years.

The Eagle Gold Project is located in Dublin Gulch, approximately 80 kilometres northeast of Mayo.

Gold will be recovered from the crushed ore taken from the two open pits through a heap-leach process. It’s expected more than 30 tonnes a day will be crushed.

Victoria Gold is planning to tie into the main electrical grid, along the transmission line running between Mayo and Keno City.

McConnell said if they go forward this year, he does not expect to tie in this year but he does expect to built the line from the mine site to the main line.

Victoria Gold, he insisted, is committed to local hire wherever possible.

“It just makes sense,” McConnell said. “These guys know the North, they know what they are doing in cold weather and they are competitive.”

McConnell pointed out Victoria Gold has sunk $120 million into the project since 2009.

Victoria Gold shares were trading this morning for C$0.62, down from a high of $0.80 over the last year but up from a low of $0.16.

Gold was trading this morning at US$1,209, down from a high of $1,365 over the last year but rebounding from the 12-month low of $1,128 in November.