Harte Gold has signed an impact benefits agreement (IBA) with Pic Mobert First Nation in connection with the company's Sugar Zone property, 25 kilometres north of White River.
The gold property is located within the traditional territory of Pic Mobert First Nation.
The IBA sets out a framework for how the community and the mining company plan to work together when commercial production at the Sugar Zone Mine gets rolling during the middle of this year.
It's customary that the terms these agreements are usually kept confidential but Harte revealed some of the key ones include a four per cent net profits interest based on the World Gold Council definition of “all in sustaining cost” metrics, plus stock options to purchase 500,000 common shares of Harte Gold at a price of $0.40 for a period of five years.
“Harte Gold and Pic Mobert have worked together in a mutually respectful and profitable manner since signing our exploration agreement in 2011," said company president Stephen Roman in a May 2 news release.
"With the signing of this IBA we have laid the foundation for long term operations and look forward to working together as we begin commercial production and continue exploration activities across the Sugar Zone property.”
Pic Mobert Chief Johanna Desmoulin was pleased the agreement's been signed..
"The agreement will guide our future relationship with Harte Gold and its operations within our traditional territory, and provide new economic opportunities for our membership.”
Desmoulin praised Harte Gold on its efforts to minimize the footprint and environmental impacts for the mine development.
Harte has claims on 80,000 hectares where it's exploring for gold and developing its Sugar Zone property into an underground gold mine.
Located 80 kilometres east of the Hemlo Gold Camp near the north shore of Lake Superior, the company believes the ground has enough gold potential to support more than one mine.
The company extracted a 70,000-tonne bulk sample and sent it away for processing, and now has mined 30,000 tonnes under a first phase commercial production permit.
It's expected to grow production into a 540-tonne per day operation by the second quarter of this year.
Construction is finishing up on a gold processing mill at the site. Exploration is continuing this year with an 80,000-metre drill program planned.
So far, Harte has a indicated mineral resource estimate of 2,607,000 tonnes grading 8.52 grams per tonne (g/t )for 714,200 ounces of contained gold and an inferred mineral resource estimate of 3,590,000 tonnes, grading 6.59 g/t for 760,800 ounces of contained gold.
Harte will provide an update for investors and analysts on the preliminary economic assessment for the Sugar Zone Project, along with news of financing, permitting and construction with a webcast on May 3.
