Taseko Mines, the Tŝilhqot'in Nation and the Province of British Columbia (BC) have announced an agreement concerning the development of the New Prosperity mineral tenures.

The New Prosperity project, located approximately 125km south-west of Williams Lake, BC, is one of Canada's largest undeveloped copper-gold deposits.

The agreement marks the resolution of a long-standing conflict and sets a precedent for future resource development and indigenous relations.

Negotiated over several years, the deal concludes litigation among the parties and provides a framework for the potential development of the New Prosperity resource, which contains 5.3 billion pounds of copper and 13.3 million ounces of gold.

This settlement is seen as a significant step towards reconciliation in BC, balancing resource development with the rights of the First Nations.

Taseko Mines president and CEO Stuart McDonald said: “This agreement resolves a damaging and value-destructive dispute, and acknowledges Taseko’s commercial interests in the New Prosperity property and the cultural significance of the area to the Tŝilhqot’in Nation. Taseko will retain a majority interest (77.5%) in the mineral tenures, while any future development at New Prosperity will benefit the Tŝilhqot'in people, and will only occur with their free, prior and informed consent.

“We thank all the parties for their contributions at the negotiating table and their commitment to the multi-year dialogue that has led to this historic agreement.”

Key terms of the agreement include a C$75m ($54.8m) payment from the Province of BC to Taseko upon closing.

Taseko will also grant a 22.5% equity interest in the mineral tenures to a trust for the Tŝilhqot'in Nation's future benefit.

Taseko retains the majority interest but has agreed not to lead exploration or development activities, nor own a future mine. Instead, Taseko can divest its interest, potentially to other companies that have the Tŝilhqot'in Nation's consent.

A consent agreement between Taseko and the Tŝilhqot'in Nation ensures that no mineral exploration or development will proceed without the Nation's free, prior and informed consent.

Additionally, the Tŝilhqot'in Nation and BC will engage in land-use planning for the area and establish a Cultural Revitalisation Fund, with the province providing necessary funding.

The transaction is subject to customary conditions and is expected to close in June 2025, marking a new chapter for the New Prosperity project and indigenous partnerships in the mining sector.