Thesis Gold gets rare First Nations equity investment

Thesis Gold (TAU‑TSXV) has announced an equity investment by the Kwadacha, Tsay Keh Dene and Takla First Nations as the company advances the Lawyers‑Ranch project in British Columbia. 

While the $1.05-million shares purchase is small at 0.3% in the junior gold explorer, it represents the somewhat rare occurrence of Indigenous groups buying into mining companies in Canada.

Other examples include Venerable Ventures’ (TSXV: VLV.H), operated by the Selkirk First Nation, trying to revive the Minto mine in Yukon, the Mishkeegogamang First Nation with a stake in First Mining Gold (TSX: FF; US-OTC: FFMGF) holding the Springpole gold project in Ontario, and Nations Royalty (TSXV: NRC; US-OTC:NRYCF) listing in Toronto last year with majority Indigenous ownership. 

The Kwadacha, Tsay Key Dene and Talkla Nations bring “invaluable knowledge, guidance and support to our work,” Thesis Gold President and CEO Ewan Webster said in a release this week. “Thesis is committed to building strong, long-term mutually beneficial relationships with the Nations.”

The company expects the investment to close Oct. 25. It sold 739,437 common shares at $1.42 each to the group of First Nations. Shares in Thesis were at $1.55 at mid-Thursday in Toronto. Like many gold companies, the stock has more than doubled this year on record bullion prices. 

Lawyers-Ranch

Thesis says its 2025 plan includes an expanded exploration and drill program, delivery of a pre‑feasibility study on the combined Lawyers‑Ranch project, and the start of the environmental impact assessment process.

Lawyers‑Ranch has an after‑tax net present value of $1.28 billion at a 5% discount and an internal rate of return of 35%, according to preliminary economic assessment from September last year. The study, using gold at US$1,930 per oz. and silver at US$24 per oz., outlined a potential 14-year mine (open pit and underground) with annual gold-equivalent production of 215,000 ounces. Initial capital costs were pegged at $598.4 million. 

The project holds 94.4 million measured and indicated tonnes grading 1.51 grams gold-equivalent for 4 million oz. gold-equivalent contained metal, according to a resource update in May 2024. 

The property in the Toodoggone mining district hosts a former underground mine that operated from 1989 to 1992 when it produced 173,000 oz. of gold and 3.6 million oz. of silver. 

Tsay Keh Dene has partnered with Thesis for several years to move Lawyers‑Ranch from concept towards construction and operation.

“The considerable investment by Tsay Keh Dene in Thesis reflects the growing confidence we have in the project and the ability of Thesis’ management team to lead and execute this project,” Tsay Keh Dene Chief Pierre said in a release.