AurCrest Gold and Lac Seul First Nation sign agreement to develop GHG emission sequestration projects and monetize carbon offsets in the Boreal Forest
December 13, 2019
Toronto, Ontario December 13, 2019 - AurCrest Gold Inc. (the “Company” or “AurCrest”) (TSX-V: AGO) is pleased to announce that the Company has signed an Emission Reduction Benefit Management Agreement (“ERBMA”) with the Lac Seul First Nation (“Lac Seul”) to develop forest carbon sequestration opportunities in the First Nation’s traditional territory in Northwestern Ontario.
As announced by the Company on August 19th, 2019, a Carbon Development & Marketing Agreement (“CDMA”) had been signed between the Company and Blue Source Canada ULC (“Bluesource”). The CDMA set forth the terms and conditions by which the Company and Bluesource will collaborate to develop carbon sequestration opportunities and market the resulting carbon offsets alongside First Nations pursuing their inherent stewardship role both on reserve and within their traditional territories.
Lac Seul plays a central role in the management of the forests in its traditional lands, both as customary stewards of the land and as a party to certain legal agreements with the province of Ontario.
Bluesource works with companies, governments and NGOs to reduce and mitigate environmental impacts. They develop projects that create land, water, and climate benefits, and as a company use strategic partnerships, finance, innovation and markets to achieve those goals.
AurCrest will now move forward with Lac Seul and Bluesource to identify, develop, and implement emission reduction and sequestration project opportunities. AurCrest together with Lac Seul will extend invitations to participate to other regional First Nations.
Under the terms of the ERBMA, AurCrest has been appointed by LSFN as the sole and exclusive agent for LSFN to act as manager to develop projects within the traditional territory of the LSFN to harvest Emission Reduction Benefits (“ERBs”), being environmental and financial benefits associated with the carbon sequestration from enhanced management of the forest resource. AurCrest has entered into the aforementioned CDMA with Bluesource to provide the expertise associated with monetizing the carbon offsets.
The benefits derived from the monetization of ERBs, net of expenses, will be split as to 75% to Lac Seul and 25% to AurCrest and Bluesource. The management agreement has an initial term of five years commencing from the date the first ERBs available for sale are generated by the project. At the end of the initial five year term, Lac Seul can purchase the 25% interest for fair market value. If the interest is not purchased at the end of the initial five years, the management agreement continues for a further five years after which time the 25% interest will be relinquished to LSFN.
Christopher Angeconeb, AurCrest President and CEO stated “As a member of the Lac Seul First Nation, I am very pleased that the Lac Seul Chief and Council have moved forward with AurCrest and Bluesource, through this Company’s model of participation and inclusion with our First Nations neighbour communities, to turn the historical role of indigenous people as stewards of the land into a modern model of indigenous-led environmental and community sustainability. I am very pleased that AurCrest is the first publicly traded company in Canada to be able to pursue this carbon sequestration opportunity. I am also proud that the Company’s model represents a holistic approach to economic and resource development, as a partnership between indigenous and non-indigenous peoples of Canada, for the mutual benefit of all for generations to come.”
About AurCrest Gold Inc.
AurCrest is a mineral exploration company focused on the acquisition, exploration, and development of gold properties. AurCrest has a portfolio of properties in Ontario, which include the Richardson Lake and Bridget Lake gold properties.
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AurCrest Gold Inc.
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Forward Looking Statement:
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various risks. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. AurCrest undertakes no obligation to update such forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.
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