First Mining Gold (TSX: FF) has signed an agreement with the First Nations of Cat Lake and Lac Seul to develop the Springpole gold project in northwestern Ontario.

Announced on Thursday, the agreement covers all stages of the project — construction, operations and closure. According to First Mining, the deal respects the land, air, water and culture while delivering key benefits to the Cat Lake and Lac Seul communities. Agreements of this kind, often called impact-benefit agreements, have become a standard requirement for advancing major mining projects in Canada, where developers increasingly need Indigenous community support to secure permits and financing.

“We appreciate the enormous amount of work and dedication that both nations have put into understanding the Springpole project and working toward this collaborative definitive agreement for advancement of the mine,” First Mining CEO Dan Wilton said in a release.

Springpole, located about 140 km north of Sioux Lookout, Ont., and more than 400 km north of Thunder Bay, is one of the largest undeveloped gold projects in the province, according to First Mining. An updated prefeasibility study issued in December reports the property hosts 191 million indicated tonnes grading 0.78 gram gold per tonne for 4.8 million oz. gold and 28 million oz. silver. The study also outlines an inferred resource of 64 million tonnes grading 0.38 gram gold and 3.1 grams silver for 800,000 oz. gold and 6.5 million oz. silver.

Shares in First Mining closed 3¢ higher at 97¢ apiece on Thursday in Toronto, valuing the company at $1.36 billion.

Past dispute

Cat Lake had previously challenged Ontario in court over permits for an access road to Springpole, arguing the province had failed to adequately consult the First Nation. The case ended in June 2024 when Cat Lake accepted a settlement offer from the province, without a ruling on the merits. The terms of the settlement were not publicly disclosed.

Cat Lake later joined Lac Seul First Nation in an Anishinaabe-led impact assessment of Springpole and, in June this year, authorized the project subject to 35 negotiated conditions.

The agreement signed in June to develop an all-season access road linking Cat Lake to Sioux Lookout outlines First Mining spending $4 million on permitting, clearing, geotechnical work and engineering design.

Environmental management

This week’s agreement includes provisions for the two nations to participate in the project’s environmental management and monitoring. First Mining says it will implement preferential training and employability measures to ensure economic upside for the communities.

“This milestone reflects years of hard work, cooperation, respect and willingness to share the rich resources within our traditional territories, in accordance with our Anishinaabe laws and traditions,” Clifford Bull, Chief of Lac Seul, said in the same release.

The new deal represents a “major socioeconomic win,” Cat Lake Chief Russell Wesley said.

“The process to get here involved many difficult decisions, and we are thankful for all the dedication of our people to the land, culture and way of life,” Wesley said.

“This agreement will create meaningful opportunities for our members and youth, strengthen our ability to shape our future and protect our enduring relationships with the land, water and all who call this place home.”

While the agreement marks a significant step for community relations, Springpole still requires federal and provincial environmental approvals before construction can proceed, and First Mining has not announced a construction decision for the project.