Quadra FNX and Sagamok Anishnawbek have signed a memorandum of understanding in relation to the development of the Victoria Project in Sudbury, a day after announcing its 2011 fourth-quarter production numbers.
The agreement “will serve as a foundation for a working relationship between the parties” until an impacts and benefits agreement (IBA) is concluded, according to a news release. The agreement process is being pursued in conjunction with environmental permitting for the Victoria Project.
“This memorandum of understanding will facilitate open and timely dialogue between Quadra FNX and our First Nation as it relates to the company's activities to develop the Victoria advanced exploration project,” Sagamok Chief Paul Eshkakogan said in the release. “We look forward to negotiating an IBA that will provide benefits for our members and ensure the environment and our traditional territories are protected.”
Quadra FNX president and CEO Paul Blythe said he was pleased the company and First Nation signed the agreement.
“As a company we believe in having a strong relationship with all First Nations communities and other stakeholders in the Sudbury area, and this MOU is an important step in establishing a long-term, mutually beneficial partnership.”
On Jan. 16, Quadra announced the results of its fourth-quarter production and a resource update for the Victoria Project.
The company produced 59 million pounds of copper, 24,000 pounds of total precious metals, and three million pounds of nickel.
Production for 2011 totalled 220 million pounds of copper, 103,000 ounces of total precious metals, and 10 million pounds of nickel, which the company said was in its previously stated guidance range.
Blythe said that the company's focus on production and development remains unchanged, pending stakeholders' consideration of the offer on the table from KGHM Polska Miedz S.A., the polish company bidding to purchase Quadra FNX.
The total tonnes mined at Robinson increased by more than 40 per cent quarter over quarter. At Morrison, the company completed its lease agreement with Xstrata Nickel, which grants Quadra access to the Craig Mine and infrastructure, allowing it to mine the Levack/Morrison deposit.
The company additionally increased the inferred resource estimate at the Victoria Project by 16 per cent in tonnes, including 32 per cent more in nickel, 26 per cent in copper, and four per cent in total precious metals.
A stakeholder vote is slated for Feb. 20 in Vancouver.
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