Strengthening Bonds: A Landmark Agreement with the Wabigoon Lake Ojibway Nation
NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX) announced a significant new Relationship Agreement with the Wabigoon Lake Ojibway Nation, marking a pivotal moment in the company's operations and its commitment to inclusive and respectful collaboration.
NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX)announced a significant new Relationship Agreement with the Wabigoon Lake Ojibway Nation, marking a pivotal moment in the company's operations and its commitment to inclusive and respectful collaboration. The agreement aims to compensate for historical exploration activities and enhance First Nation participation in the future Goliath Gold Complex. Jeremy Wyeth, CEO of NexGold, expressed the company's pride in this renewed relationship, emphasizing the importance of operating on traditional lands with respect and cooperation.
Chief Clayton Wetelainen of Wabigoon Lake Ojibway Nation highlighted the necessity of new arrangements that protect their rights and interests while fostering sustainable and economically beneficial partnerships. The Agreement supports a framework for collaboration that includes reconciliation measures, capacity funding, a technical working group, and new opportunities for education, training, and mentorship for First Nation members.
Morgan Lekstrom, President of NexGold, underlined the significance of involving local Indigenous communities in a call with Streetwise, stating, "It's important to have the local Indigenous communities involved and engaged given our proximity to their traditional land; we want to make sure that we are working hand in hand with them. That's a big part of how we do business in Canada."
The Evolving First Nations' Relationship To Mining
The relationship between Indigenous communities and mining companies has been evolving, driven by a growing awareness of the need for environmentally and socially responsible practices.
According to Mining.ca, "Canada's mining industry has prioritized building and maintaining respectful, strong, and trusting partnerships with communities impacted by, or with an interest in, mineral exploration and mining activities." This commitment is reflected in the industry's efforts to engage with communities, including Indigenous peoples, to share information and collaborate on issues related to environmental effects, monitoring, and cultural protection.
The industry has made significant strides in developing partnerships and initiatives that generate economic opportunities and wealth for surrounding communities. Mining.ca noted, "The industry also focuses on developing partnerships and initiatives that generate economic opportunities and wealth for surrounding communities." This approach has been fundamental in supporting the sustainable socioeconomic development of many First Nations, Inuit, and M?tis communities.
The Mining Association of Canada (MAC) members' participation in the Towards Sustainable Mining (TSM) initiative further underscores this commitment. Mining.ca highlighted, "MAC members' commitment to ongoing engagement and maintaining respectful relationships with Indigenous communities is further demonstrated through participation in Towards Sustainable Mining (TSM)." This initiative includes a revised Indigenous and Community Relationships Protocol, which raises the bar on facility performance by strengthening criteria across indicators and introducing new measures for effective Indigenous engagement and dialogue, as well as community impact and benefit management.
The industry's efforts align with the Truth and Reconciliation Commission of Canada's Call to Action 92 iii, which calls for the corporate sector to provide education and skills-based training for managers and staff in areas such as Indigenous history and intercultural competency. According to Mining.ca, "The protocol responds to the Truth and Reconciliation Commission of Canada's Call to Action 92 iii, which calls for the corporate sector to provide education and skills-based training for managers and staff in areas such as Indigenous history and intercultural competency."
These initiatives have not only helped to build strong and long-lasting relationships but also provided a steady source of income for Indigenous communities. As reported by Mining-Technology on June 23, 2023, "Many responsible Canadian mining companies have built strong and long-lasting relationships with Indigenous communities, providing a steady source of income for the working adults in these communities, as well as through community investments during the life of mine, but also through legacy projects that leave communities with infrastructure and skills that they otherwise may not have benefited from."
In 2019, Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) spent over US$3.8 million toward Inuit development, in addition to initiatives related to literacy, numeracy, and youth awareness and education programs. This significant investment underscores the positive role mining can play in supporting the development of Indigenous communities.
The Canadian government encourages mining companies to collaborate with Indigenous communities, recognizing the real benefits these collaborations can bring. Mining-Technology reported, "The government of Canada, and its different entities, encourage Canadian companies to collaborate with Indigenous communities, for instance, by working with their businesses, but also because they know it can have real benefits for these communities."
Respecting Indigenous rights and collaborating with impacted communities is seen as essential for the success of resource extraction projects. Mining-Technology emphasized, "Respecting Indigenous rights and collaborating with impacted Indigenous communities to responsibly develop resource extraction or infrastructure projects is essential and key to the success of the projects and the only way that it should be done."
Today's Climate of Mining For Gold
The gold mining sector has faced numerous challenges in recent years as the search for new deposits has become increasingly difficult. According to The Jerusalem Post on August 4, 2024, "Global mine production saw a modest rise of just 0.5% in 2023 compared to the previous year." This modest increase in production highlights the struggles the industry faces in maintaining growth. Despite these challenges, the first quarter of 2024 witnessed a 4% year-on-year increase in mine production, indicating some positive movement within the sector.
The Jerusalem Post also reported that approximately 187,000 metric tons of gold have been mined to date, predominantly from China, South Africa, and Australia. The United States Geological Survey estimated that gold reserves suitable for excavation are around 57,000 tonnes. This suggests that while significant amounts of gold have been extracted, the remaining reserves are becoming harder to locate and develop.
Gold.org, in a June 26, 2024 article, highlighted that "Gold has rarely been out of the headlines in recent months, having outperformed most other global assets and repeatedly reached record highs." The performance of gold has attracted significant attention from investors, particularly in North America. The article noted that 85% of North American professional investors reported an allocation to some type of gold investment, up from 69% in 2018. This increase reflects a growing recognition of gold's role as an excellent portfolio diversifier and inflation hedge.
Gold's core attributes, including its ability to reduce portfolio risk, have been well recognized by investors. According to Gold.org, "Gold's stellar recent performance will have been an unexpected boon to such investors, although perhaps less of a surprise to the 21% who agree that gold generates 'excellent' comparative long-term returns." Additionally, over one-quarter of respondents in their survey planned to increase their gold allocations in the next 12 to 18 months.
The Motley Fool, on July 23, 2024, emphasized gold's role as a safe-haven metal. They stated, "Gold is a safe-haven metal. Investors buy gold to hedge against risks such as rising inflation, geopolitical events, and financial crises." The publication also highlighted that gold had rallied by the middle of 2024, driven by inflationary and geopolitical concerns, reaching over US$2,450 an ounce. This price surge underscores the metal's appeal during times of economic uncertainty.
Furthermore, The Motley Fool pointed out that "Gold mining companies can potentially generate higher total returns than an investment in physical gold because they can expand their production and reduce costs." This ability to grow profits can drive stock prices up faster than the price of gold itself. The publication also noted that top-tier gold miners, with low-cost structures and manageable debt levels, often outperform the price of gold.
NexGold's Next Moves
NexGold's new Agreement with the Wabigoon Lake Ojibway Nation is poised to bring benefits to the Goliath Gold Complex. The commitments within the Agreement, such as increased First Nation participation and the formation of a technical working group, are expected to streamline the project's development and foster long-term sustainability.
Rachel Pineault, Vice President of HR and Sustainability at NexGold, expressed optimism about the future in the press release, stating, "NexGold looks forward to pursuing new approaches and innovative opportunities with Wabigoon Lake Ojibway Nation to strengthen our relationship. We know that the Nation's unique knowledge and guidance will bring tremendous benefits to the Goliath Gold Complex for the long term."
Moreover, NexGold's recent activities suggest continued momentum and future announcements. Lekstrom hinted at forthcoming developments, stating, "Stay tuned. More news is coming. This is a big step. Next is finalizing permitting and then starting to plan the bigger build program." This anticipation aligns with the company's strategic goals and highlights its commitment to progressing the Goliath Gold Complex in collaboration with First Nation partners.
Streetwise Ownership Overview*
NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX)
*Share Structureas of 8/8/2024Source: Refinitiv & NexGold Mining Corp.This agreement replaces a previous Memorandum of Understanding from 2011, marking a new era of cooperation and mutual benefit. The proactive measures and innovative approaches outlined in the agreement are set to enhance NexGold's operational efficiency and community relations, positioning the company for sustained growth and success in the mining sector.
Ownership and Share Structure
The company notes that management and insiders own 3.4% of the stock.
Refinitiv reports that institutions own 15.72% of NexGold. Of that, the company reports the top holders are Extract Advisors LLC with 9.3%, and Sprott Asset Management LP with 9.9%.
Strategic investors own 6.02%. The company reports that First Mining Gold Corp. owns 4.3%, and Teck Resources owns 1.9%
The rest is retail.
NexGold has 76 million free float shares and a market cap of CA$60.882M.
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Important Disclosures:
NexGold Mining Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of NexGold Mining Corp. and Agnico Eagle Mines Ltd. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.