Junior miner extends gold hand to First Nation

A northwestern Ontario First Nation community has acquired shares in a junior gold mining company intending to explore on its traditional lands.

As part of a private placement, AurCrest Gold of Toronto announced it has placed 2,702,704 units of the company at a price of $0.185 per unit for gross proceeds of $500,000 with the Lac Seul First Nation.

In what AurCrest president Ian Brodie-Brown called a relationship “unprecedented within the junior mining industry,” the company will be negotiating an exploration agreement with the First Nation.

“We are very pleased to be working closely with the Lac Seul First Nation and look forward to exploring for gold assets in their traditional territory, known to be one of Canada's great gold camps, namely Red Lake and East Red Lake.”

Lac Seul, located 38 kilometres northwest of Sioux Lookout, is made up of the communities of Kejick Bay, Canoe River, Whitefish Bay and Frenchman's Head.

As part of the transaction, Lac Seul can nominate one direct to the AurCrest board of directors.

Chief Clifford Bull of the Lac Seul First Nation said the transaction “reflects the mutual respect that has developed between us and we look forward to building a strong relationship to realize the benefits and opportunities from the mineral exploration industry in our territory.”