Kapuskasing Gold has granted company stock to Brunswick House, Chapleau Cree, Chapleau Ojibwe and Flying Post First Nations, the four First Nation communities within the mining company’s operating area.
Kap Gold signed a memorandum of understanding (MOU) with the four communities in September around the company’s six gold exploration projects near the town of Chapleau. The MOU indicates a desire by all parties to find ways to work together moving forward on the project, and, in conjunction, to look for business, employment and training opportunities for the First Nations communities.
The company has now granted 50,000 common shares and 50,000 share purchase warrants to each of the four First Nations communities.
According to the company, each warrant will be exercisable into one Share at $0.05 for a period of five years. The warrants will vest 25 per cent on the approval of the TSX Venture Exchange and 25 per cent after six months, 12 months and 18 months after the date of the MOU.
"As we look forward to working together with the First Nations communities on our projects in Northern Ontario, we are also pleased that each community will be able to participate directly in Kapuskasing Gold's future," Kap Gold president Dean Nawata said in a news release.
Shawn Batise, executive director of the Wabun Tribal Council, said the shares and share purchase warrants allow for “continued participation” in the project.
“We are very proud of our developing relationship with KAP,” Batise said in the release. “We commend KAP's commitment to ongoing and meaningful engagement with the First Nations surrounding KAP's exploration projects.”
Kapuskasing Gold’s six gold properties are located along extensions of the Destor-Porcupine or Borden Gold project. All of the properties, with the exception of Rollo, are situated within the Kapuskasing structural zones and have potential similarities to Goldcorp's Borden Gold project.
