Hope Bay mine’s new owners, Inuit org sign MOU on license transfers

TMAC Resources Inc. and the Kitikmeot Inuit Association have entered into a memorandum of understanding whereby the KIA consents to transfer all Hope Bay project permits, leases and agreements for which they are responsible to TMAC.

That announcement came March 14, one day after TMAC said it had completed the acquisition of the Hope Bay project from Newmont Mining Corp. and closed $50 million in financing.

“KIA welcomes TMAC and their management to the Kitikmeot region,” said KIA president Charlie Evalik in a March 14 news release.

“We believe TMAC is the right company to unlock the potential of the Hope Bay greenstone belt. KIA looks forward to the Inuit employment and other valuable benefits resulting from the resumption of exploration and development at Hope Bay.”

The signing of the agreement with the KIA means TMAC has fulfilled all outstanding requirements to complete the company’s transaction to acquire the Hope Bay project from Hope Bay Mining Ltd., a subsidiary of Newmont Mining Corp.

The agreement with KIA allows for the transfer of surface leases, land use licences, the Inuit Impact Benefit Agreement, and water compensation, capacity and traditional knowledge agreements from Hope Bay Mining to TMAC.

TMAC and the KIA have also agreed to work together to approach federal organizations to address the current practice of “over- or double-bonding,” which requires mining companies to lay aside money for the future reclamation of lands, on lands that are owned by the KIA.