Taseko Mines (TSX: TKO; NYSE American: TGB; LSE: TKO), the Tŝilhqot’in Nation, and the Province of British Columbia signed an agreement that resolves a complex, long-standing conflict over Taseko’s New Prosperity mineral tenures. These mineral tenures, located about 125 km southwest of Williams Lake, British Columbia, lie in the Teẑtan Biny (Fish Lake) area of Tŝilhqot’in territory. New Prosperity ranks as one of Canada’s largest copper-gold deposits, containing 5.3 billion pounds of copper and 13.3 million ounces of gold in measured and indicated mineral resources.
The parties negotiated the historic agreement over several years, ending litigation among them and providing clarity on how they can develop the significant copper-gold resource at New Prosperity in the future. The agreement resolves a high-profile conflict between rights of resource developers and First Nations.
Stuart McDonald, president and CEO of Tesko Mines, commented, “This agreement resolves a damaging and value-destructive dispute, and acknowledges Taseko’s commercial interests in the New Prosperity property and the cultural significance of the area to the Tŝilhqot’in Nation. Taseko will retain a majority interest (77.5%) in the mineral tenures, while any future development at New Prosperity will benefit the Tŝilhqot’in people, and will only occur with their free, prior and informed consent,”
McDonald added: “We thank all the parties for their contributions at the negotiating table and their commitment to the multi-year dialogue that has led to this historic agreement.”
Key elements of the Agreement include: The B.C. government will pay Taseko $75 million upon closing. Taseko will transfer a 22.5% equity interest in the New Prosperity mineral tenures to a trust for the future benefit of the Tŝilhqot’in Nation. The trust will pass the property interest to the Tŝilhqot’in Nation when and if they consent to pursuing mineral development in the project area.
Taseko will retain a majority interest (77.5%) in the New Prosperity mineral tenures and may divest portions of its stake at any time, including to other mining companies that can advance a project with the consent of the Tŝilhqot’in Nation. Taseko has agreed not to act as the proponent (operator) or owner of any future exploration or mine development at New Prosperity.
Taseko and the Tŝilhqot’in Nation entered into a consent agreement, which ensures that no mineral exploration or development activity can proceed in the New Prosperity project area without the free, prior, and informed consent of the Tŝilhqot’in Nation. BC and the Tŝilhqot’in Nation agreed to negotiate the process for seeking the consent of the Tŝilhqot’in Nation regarding any proposed mining project through an environmental assessment process.
Finally, the Tŝilhqot’in Nation and BC committed to undertaking a land-use planning process for the area of the mineral tenures and a broader area of land within Tŝilhqot’in territory. BC pledged to provide funding to the Tŝilhqot’in Nation to facilitate the land-use planning process and to support a cultural revitalization fund.
Jagrup Brar, B.C.’s minister of mining and critical minerals, stated: “Resolution of this legal and public conflict has been a priority for this government. These negotiations, which began under the previous mandate, laid important groundwork. The agreement demonstrates B.C.’s commitment to reconciliation and ensuring that the interests of First Nations and mining companies can advance together. I want to recognize all parties to this agreement for their willingness to collaborate to find common ground, build mutual respect, and create a foundation for shared prosperity. We will continue working in partnership to maintain a stable investment climate and future economic benefits for British Columbians.”
Nits’ilʔin Roger William, Nits’ilʔin of Xeni Gwet’in, commented: “This agreement protects our rights of consent in the Teẑtan area. That’s huge. For over three decades, we’ve had conflict in the Teẑtan area. For my oldest son, for many Tŝilhqot’in, that conflict has always been there, for their entire lives. Now we are turning the page. Tŝilhqot’in consent is protected: there is no longer the threat of exploration or mining without our consent. I hold my hands up to everyone that worked hard over the past five years to achieve this historic agreement that reflects true reconciliation, including the province and Taseko Mines Limited. This is a time to celebrate for our people and honour all those who made this resolution possible.”
More information is posted on www.TasekoMines.com.
