Avanti Mining and its subsidiary Avanti Kitsault Mine have signed a deal with the Nisga'a Nation over the proposed $1bn open pit Kitsault molybdenum mine in north-western British Columbia on the west coast of Canada.
The deal resolves all outstanding litigations and addresses Nisga'a concerns regarding environmental protection, according to Avanti Mining.
Additionally, it will provide the Nisga'a Nation with benefits, including a net smelter royalty of up to 2%, based on current molybdenum prices.
Avanti president and CEO Gordon Bogden said: "This agreement marks the start of a new and promising chapter in our relations with the Nisga'a Nation."
"We are confident it will provide meaningful benefits to all parties, including Nisga'a individuals and businesses, and we look forward to growing this partnership."
An environmental assessment certificate was issued to the proposed Kitsault mine project by the province of British Columbia in March 2013, and a federal environmental assessment was expected to follow.
Following the issuance of the certificate, the Nisga'a Nation alleged that the province had violated its commitment to the nation, which had raised converns over the environmental assessment of the project. Nisga'a Nation initiated legal proceedings against British Columbia in August 2013.
The Kitsault mine has been in operation from 1968 to 1972, and from 1980 to 1982.
Subject to the receipt of final permits, the mine is expected to recommence operations this year and will create 300 full-time jobs during its estimated 14-year life.