Kitnuna Corp. now 100 per cent Kitikmeot-owned
Kitkmeot Corp. pays out first dividend to region’s Inuit organization
The Kitikmeot Corporation is now the sole owner of the Cambridge Bay-based Kitnuna Corporation, which manages a handful of subsidiary companies that operate in Nunavut’s western region.
Kitnuna was originally a 50-50 joint venture between Nunasi and Kitikmeot corporations until Nunasi transferred its shares to Kitikmeot Corporation, both entities announced Feb. 9.
Kitnuna’s main function is to administer and manage its various subsidiary companies and joint ventures such as Kitnuna Projects, Kitnuna Petroleum and Kitnuna Expediting Services.
“Nunasi’s sale of its stake in Kitnuna is consistent with the strategic direction that our company has taken since the introduction of a new ownership structure in 2013, intended to align Nunasi’s interest with those of Nunavut’s three Regional Development Corporations,” said Nunasi President, Greg Cayen, in a Feb. 9 release.
“It makes good business sense for Kitnuna, a business intensively focused on serving the Kitikmeot region, to fall under the full ownership of Kitikmeot Corporation, which is better positioned to provide the critical support that will allow Kitnuna to successfully pursue local and regional business opportunities.”
Kitikmeot Corp. president David Omilgoitok said Kitnuna continues to be an “important player” in the region’s economy.
“I am confident that with strong support from Kitikmeot Corp., Kitnuna’s operations can expand, thereby resulting in a variety of benefits including improved revenues, new business developments and more employment opportunities for Inuit,” Omilgoitok said in the same release.
The Kitikmeot Corp. also delivered its first-ever dividend payment to the Kitikmeot Inuit Association last week.
On Feb. 5, the Kitikmeot Corp.’s board of directors passed a resolution directing the corporation to issue $100,000 to the KIA, its sole shareholder.
“Key to this story has been our ability to secure contracts that support major resource development projects,” Omilgoitok said. “Kitikmeot Corp. greatly appreciates KIA’s efforts to negotiate Impact and Benefit Agreements with developments operating both inside and outside the Kitikmeot region.”
KIA’s acting president Charlie Evalik said the dividend payment comes at a good time for Inuit in the region.
“The fact that KIA received this payment at a time of considerable difficulty for the region’s mining and mineral exploration sector demonstrates that, despite the economic headwinds we face, KC’s board of directors and management team have been very effective in steering the corporation,” Evalik said in a Feb. 5 release.
Evalik said the money would help enhance programs which support Inuit culture and wellness such as the Inuit Initiatives Fund.