Minto Metals Corp (TSX-V:MNTO) said it has submitted a proposal to the Yukon government with respect to furnishing the $21 million increase in security costs required for the Minto Mine site.
The Yukon Government and Selkirk First Nation (SFN) are currently reviewing the adequacy of the proposal to address the current security gap.
“I would like to thank the Yukon Government for their support and acknowledgment of all the hard work our team has been doing to reduce the site liabilities and improve our water management,” Chris Stewart, president & CEO of Minto Metals said in a statement.
READ: Minto Metals Corp reports record EBITDA in 2Q
“We are pleased to be able to continue to operate our mine while we work together, taking a tri-partite approach to finalizing an agreement that satisfies both YG's and SFN's concerns," he added.
Minto submitted a proposal to the Yukon government on August 31, 2022, outlining how it would address the current security gap and as part of the proposal, Minto made a $1 million cash payment to the Yukon government on September 1, 2022.
In response, the Yukon government stated that the payment “demonstrated Mintro Metal's attentiveness to the requirement, and represents a positive step in closing the security gap to address site reclamation and closure," the company said.
The company quoted the Yukon Government as saying that "the concept of payment of outstanding security within a schedule is an acceptable approach."
"Minto Metals demonstrates daily its commitment and abilities to improve site reclamation and closure conditions," Minto further quoted the Yukon government as saying.
Minto said the Yukon government has agreed to extend and amend the Restricted Operating Conditions (ROC) related to the Quartz Mining License so that the Minto Mine operations can continue uninterrupted. Minto has been operating under these ROC since April 5, 2022, and notes that once the revised security is furnished in full, the ROC will be completely removed.
The ROC involves additional reporting requirements as well as requiring the company, among other things, to increase its water storage capacity on-site.
Minto quoted the Yukon government as saying that "it remains in Yukon's best interest for Minto Metals to remain on-site reducing site liabilities and maximizing water management and treatment capabilities".
Minto Metals operates the producing Minto mine located within the traditional territory of the SFN in the Minto Copper Belt of the Yukon. The Minto mine has been in operation since 2007 with underground mining commencing in 2014.
"As previously communicated in earlier press releases, the last several months have been challenging for us with excess water on our mine site temporarily shutting down our milling operations. I would like to take this opportunity to thank our suppliers and contractors for their continued support as we focus on processing the ore stockpile that accumulated during the mill shutdown periods," concluded Minto Metals president and CEO Stewart.
Contact the author at jon.hopkins@proactive.com