Published on: 1/9/2013 4:06:49 PM Print | Font Sizes:  Normal Text Large Text

Junior miner signs agreement with First Nation


By: Northern Ontario Business staff

Foundation Resources, a Vancouver junior miner, has signed an agreement with the Wahgoshig First Nation as part of its acquisition of Sheltered Oak Resources.

In a Jan. 8 release, Foundation announced that Wahgoshig (WFN) agreed to amend its memorandum of understanding with Sheltered Oak Resources (OAK), allowing Foundation to become a party to the agreement upon its final acquisition of Sheltered Oak (OAK).

The agreement applies to OAK's Kerr gold property, a 4,176-hectare parcel of land east of Matheson in a highly prospective exploration camp known as the Abitibi Greenstone Belt in northeastern Ontario.

In a statement, Barry Girling, Foundation's interim CEO, said this demonstrates a “desire by (Wahgoshig) to work with mineral exploration companies on mutually respectful terms.”

“Robert Hanson, chairman of OAK, and I had, what can only be described as, a very productive meeting with Chief David Babin and we look forward to continuing the strong relationship that has existed between OAK and WFN.”

With an eye on moving up to mid-tier status, Foundation also made a play in November to acquire all of the outstanding shares of Solid Gold Resources, a gold explorer with nearby property in the Lake Abitibi area that's gained negative publicity for its legal flare-up with Wahgoshig over the duty to consult with the First Nation band.

But Solid Gold did not respond to the non-binding offer, allowing it to lapse on Nov. 19.

Foundation said it will make its offer public and allow Solid Gold shareholders to “communicate their views” to the board of directors.

Foundation's flagship project is its Coldstream gold project, located in the Shebandowan Greenstone Belt, 115 kilometres west of Thunder Bay, where the company has a deposit contained more than 859,000 ounces of gold of both inferred and indicated resources.

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