First Phosphate Corp. (CSE:PHOS) has struck an agreement with Pekuakamiulnuatsh Takuhikan concerning their proposed phosphate mine and Lithium Iron Phosphate (LFP) cathode active material plant project in Quebec's Saguenay-Lac-Saint-Jean Region, Canada.
The agreement outlines key principles regarding employment opportunities, business prospects, environmental conservation across the Nitassinan (ancestral lands of the First Nation), coordination of exploration activities with Nitassinan occupants, and oversight of future endeavors.
Future access to the industrial park at Mashteuiatsh for project development and potential financial involvement in the project by the First Nation are also under deliberation, First Phosphate said in a statement.
Additionally, the First Nations group has committed to collaborating with First Phosphate in advocating for rare igneous phosphate as a critical mineral at the Canadian federal level.
Under the terms of the collaboration agreement, First Phosphate has committed to issuing an initial 50,000 shares each to the ilnu-aitun funds (dedicated to Ilnu culture) and the Nelueun funds (dedicated to ilnu language). Additionally, the company will issue shares equivalent to 2.5% of the exploration and development expenditures on First Nations lands annually.
This issuance is subject to a minimum of 100,000 shares per year, including 100,000 shares for the 2024 calendar year, payable in advance.
Chief Gilbert Dominique of the Pekuakamiulnuatsh First Nation expressed satisfaction with the collaboration agreement, emphasizing the importance of early consultation in such projects to honor ancestral rights and titles, including the inherent right to self-determination.
"This agreement ensures that there will be continued follow-up during the realization of the studies and work necessary for the development of the project, with proper concern for the continuity of ilnu-aitun (the Ilnu culture)," said Chief Dominique.
John Passalacqua, CEO of First Phosphate, underscored the significance of collaboration with regional stakeholders in shaping the future of the battery industry.
"The Ilnu culture forms a fundamental fabric of the character of the Saguenay-Lac-Saint-Jean region of Quebec, and we are proud to collaborate strategically in business and culture with the Pekuakamiulnuatsh First Nation," Passalacqua added.
The Pekuakamiulnuatsh Takuhikan represents the Pekuakamiulnuatsh Nation, which comprises 10,840 members, many of whom reside in the community of Mashteuiatsh, situated on the bank of the Pekuakami (Lac Saint-Jean).