Osisko Development Corp. (TSXV,NYSE: ODV) hopes to get final approval from the Ministry of Energy, Mines and Carbon Innovation by the end of this year for its Cariboo Gold project near Wells, B.C.

The project receives a rejection from XThe atśūll First Nation, however, is threatening a legal challenge if its concerns are not addressed.

A year ago, the Cariboo Gold mine received its environmental certificate and this week the Mines Act permit was submitted to the Ministry of Energy, Mines and Low Carbon Innovation for a final decision.

However, the Xatśūll First Nation is raising objections, saying it is unhappy with negotiations on an economic benefits agreement and is threatening legal action. It also expresses concern about the mine’s impact on the environment, including caribou habitat.

According to the Ministry of the Environment, Xatśūll did not oppose the mine during the BC environmental assessment process.

The ministry approved an environmental certificate for the project in October 2023. The ministry noted that it was the first project to be “fully assessed” under the new 2018. Law on environmental assessment.

“All three nations on whose territory the project’s activities will be carried out participated in the environmental assessment,” the ministry said in a press release. “The Lhtako Dené Nation and Williams Lake First Nation provided notices of consent, and the Xatśūll First Nation informed ministers that they did not oppose the project.”

But not objecting isn’t quite the same as consent, either Xatśūll — formerly known as the Soda Creek Indian Band — say the project does not have their approval.

“Any consent-based decision-making process for the project must be based on the laws and values ​​of Xatśūll and implemented in a manner compatible with The Declaration on the Rights of Indigenous Peoples Act (DRIPA) and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP),” the First Nation stated in a press release.

“Xatśūll has previously informed the Provincial Environmental Assessment Office that it is withdrawing its consent to the project, which it will continue to do until its concerns are adequately addressed.

“Although Xatśūll is currently at the table with Osisko, the nation requires Osisko to reach an agreement with Xatsull before taking any further steps to complete the authorization process.”

“We emphasize that Xatśūll would like to see sustainable resource development on our territory, but it is remarkable that in 2024 the province and Osisko continue to move forward with this mine without our consent, unlike DRIPA and UNDRIP,” said Xatśūll Kukpi7, Chief Rhonda. Phillips.

“If the permit processes continue without us addressing our concerns, any permit that is issued will be very vulnerable to legal challenges.”

In response to Xatsull’s challenge to the project, Osisko CEO Sean Roosen points out that the company has signed benefit agreements with two other First Nations – the Lhtako Dené Nation in 2020 and the Williams Lake First Nation.

“We have made reasonable and good faith efforts over the past two years to reach an agreement with the Xatśūll First Nation, including reasonable offers of financial and other benefits, within frameworks substantially similar to those offered and agreed to by other indigenous communities,” he said. . “Our efforts have focused on delivering significant benefits to all Indigenous Nations while ensuring the project remains viable.

“We need to ensure that the integrity of the permitting process is respected as we believe the consultation on this project has been robust. We respect our record to date in meeting our obligations and expect the provincial government to act within its authority. the collaboration with the Xatśūll First Nation will continue even after the authorization decision is made.”

The company said it hopes to receive it The Law of Mines allowed sometime in the fourth quarter of this year.

Osisko Development has estimated the initial capital cost for phase 1 of the Cariboo Gold project at $137 million, but estimates a total capital expenditure of $1 billion over the life of the mine.

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