First Mining Gold inks First Nations agreement

First Mining Gold (TSX: FF) has signed an agreement with the First Nations of Cat Lake and Lac Seul to develop the Springpole gold project in northwestern Ontario.

The deal outlines all stages of the project including construction, operations and closure, First Mining said on Thursday. It respects the land, air, water and culture while providing key benefits to the Cat Lake and Lac Seul communities.

“We appreciate the enormous amount of work and dedication that both nations have put into understanding the Springpole project and working toward this collaborative definitive agreement for advancement of the mine,” First Mining CEO Dan Wilton said in a release.

Located about 140 km north of Sioux Lookout, Ont., (more than 400 km north of Thunder Bay) Springpole is one of the largest undeveloped gold projects in the province, according to First Mining. The property boasts 191 million indicated tonnes grading 0.78 gram gold per tonne for 4.8 million oz. gold and 28 million oz. silver, according to an updated prefeasibility study issued in December. 

Shares in First Mining closed 3¢ higher at 97¢ apiece on Thursday in Toronto, valuing the company at $1.36 billion.

Past dispute

Cat Lake had previously challenged Ontario in court over permits for an access road to Springpole, arguing the province had failed to adequately consult the First Nation. The case ended in June 2024 when Cat Lake accepted a settlement offer from the province, without a ruling on the merits.

The terms of the settlement were not publicly disclosed. Cat Lake later joined Lac Seul First Nation in an Anishinaabe-led impact assessment of Springpole and in June this year authorized the project subject to 35 negotiated conditions.

The agreement signed in June to develop an all-season access road linking Cat Lake to Sioux Lookout outlines First Mining to spend $4 million on permitting, clearing, geotechnical work and engineering design.

Springpole also hosts 64 million inferred tonnes grading 0.38 gram gold and 3.1 grams silver for  800,000 oz. gold and 6.5 million oz. silver, according to the prefeasibility study.

Environmental management

Included in this week’s agreement are provisions for the nations to partake in the project’s environmental management and monitoring. First Mining says it will implement preferential training and employability measures to ensure economic upside to the communities. 

“This milestone reflects years of hard work, cooperation, respect and willingness to share the rich resources within our traditional territories, in accordance with our Anishinaabe laws and traditions,” Clifford Bull, Chief of Lac Seul, said in the same release.

The new deal is a “major socioeconomic win,” Cat Lake Chief Russell Wesley said. 

“The process to get here involved many difficult decisions, and we are thankful for all the dedication of our people to the land, culture and way of life,” Wesley said. 

“This agreement will create meaningful opportunities for our members and youth, strengthen our ability to shape our future and protect our enduring relationships with the land, water and all who call this place home.”