AuTECO Minerals Ltd (ASX:AUT) has signed a milestone exploration agreement with Mishkeegogamang Ojibway First Nation (MOFN) which provides certainty regarding all pre-mining exploration activities within the traditional territories of MOFN at the Pickle Crow Project in Canada.
The revised agreement provides AuTECO with continued MOFN support for access to tenure for exploration purposes, while providing confidence to the MOFN regarding commercial, social benefit and cultural matters.
AuTECO shares surged following the announcement, rising as much as 9% higher intra-day to 6 cents.
Background
The revised agreement replaces the 2009 exploration Memorandum of Understanding (MOU) and now incorporates all AuTECO tenure that is located within MOFN traditional territories.
The previous MOU covered an area adjacent to the historical Pickle Crow mine and all work completed by AuTECO to date has been restricted to the region defined under the terms of the 2009 agreement.
AuTECO has significantly expanded the project area to ~500 square kilometres since assuming management control in March 2020 and this updated agreement ensures all tenure, including key regional exploration targets for the upcoming winter drill campaign, are included.
Outlines a path forward
Completion of the agreement ensures support of exploration and advanced exploration activities at the Pickle Crow Project and outlines a path forward for an Impact Benefit Agreement should AuTECO decide to pursue commercial development of the mine.
Additionally, in a sign of partnership, AuTECO has welcomed MOFN as shareholders via the issuance of 5 million ordinary shares to the community fund.
The shares will be issued under AuTECO’s available Listing Rule 7.1 placement capacity for nil cash consideration.
There are no material conditions precedent to the agreement and the remaining terms and conditions are commercially sensitive and confidential.
AuTECO chief executive officer Darren Cooke said: “We are delighted to sign this exploration agreement with the Mishkeegogamang Ojibway First Nation.
“I would like to pay tribute to Chief David Masakeyash and the Council for the spirit in which the discussions have taken place.
“We will continue to respect the land, tradition and culture of the First Nations peoples whilst doing our best to share the economic and social benefits of our investment in the Pickle Lake area.
“This is just the beginning of the partnership.
“With the Mishkeegogamang becoming shareholders of AuTECO, the community will benefit from our ongoing success at Pickle Crow.”
MOFN chief David Masakeyash said: “We are pleased to have reached agreement with AuTECO regarding their operations in our territory, which represents the strong and mutually respectful relationship that has resulted from our engagements.
“In this agreement, we have developed a strong framework for the protection of our land, and certainty our members will fairly benefit from the work undertaken.
“Each of these qualities are fundamental to building a relationship with our nation.”