Wahgoshig FN signs MOU with gold company working in traditional territory
Wahgoshig First Nation and Apollo Gold press release ...
Apollo Gold and Wahgoshig First Nation Announce Entry into a Memorandum of Understanding
DENVER, January 23 /CNW/ - Apollo Gold Corporation ("Apollo" or the "Company") (TSX: APG) (AMEX: AGT) and the Wahgoshig First Nation ("Wahgoshig") announced today that they have entered into a Memorandum of Understanding (the "MOU") with regard to the Company's Black Fox project.
The Black Fox project, located near Matheson, Ontario, Canada, was acquired by the Company in 2002 and lies within lands to which the Wahgoshig asserts treaty and aboriginal rights. The Black Fox project is currently in the permitting and feasibility stage, which we expect to be completed in 2007.
The Company believes that the MOU establishes the foundation for a positive and mutually beneficial relationship between the Wahgoshig and Apollo by setting out interim provisions which will apply while the Black Fox project is still in the advanced exploration stage. These provisions include such measures as training, ongoing communication, a good faith financial contribution and, subject to approval of the Toronto Stock Exchange and the American Stock Exchange, an issuance of a nominal amount of the Company's common shares to the Wahgoshig. Negotiations toward an Impact Benefit Agreement ("IBA") will commence if and when the Apollo Board of Directors decides to move from exploration to production at the Black Fox project. The MOU outlines the agenda and the process for conducting the IBA negotiations, which will include, among other things, such topics as employment, training, business opportunities and financial compensation.
"This is a significant agreement for our First Nation," said Chief David Babin. "It provides some immediate benefits which we appreciate, but more importantly from our perspective, it includes a commitment to negotiate a comprehensive agreement should the project move to the operations phase."
The President and CEO of Apollo, R. David Russell, agreed: "We see this MOU as the beginning of a positive and continuing relationship with the Wahgoshig community. During the course of our negotiations, we have become aware of the importance and the benefits of working cooperatively with the Wahgoshig First Nation."
Maurice J. Kistabish, who acted as head negotiator for Wahgoshig on the MOU negotiations, confirmed the Wahgoshig First Nation's intent of negotiating similar agreements with other resource companies operating in Wahgoshig traditional lands. Mr. Kistabish stated, "The agreement with Apollo is an important first step for our community. We consider it a precedent for our discussions with other companies in the area, and we are hopeful that they will show the same respect and cooperation in accommodating our interests as Apollo has demonstrated."
Apollo Gold Corporation
Apollo is a gold mining and exploration Company with a mine in Montana, the Black Fox advanced stage development project in Ontario, Canada, and the Huizopa Project, an early stage exploration project in the Sierra Madres in Chihuahua, Mexico.