Selkirk First Nation clears 1st hurdle to buy Yukon's abandoned Minto mine

The Selkirk First Nation in the Yukon is on its way tobecoming the new owner of the Minto mine, more than a year after the mine's previous owners abandoned the site and went into receivership.

On Thursday, the Yukon Supreme Court approved an initialtransaction that would seethe Selkirk First Nation (SFN) takes over the copper-gold mine and its assets. The Minto site is on SFN's traditional territory.

Selkirk Chief Sharon Nelson called the court's decision whichallows the sale of the mine's facilities and some of the equipment to SFN a "monumental step for Selkirk People."

"We have always pushed for the environmental integrity of the Mintomine site, but we will now be positioned for more command and control of the site, which opens up many possibilities in the future for Selkirk people, including the potential of exploration and reopening [the mine]," Nelson said.

The mine was abruptlyabandoned by the now-defunct Minto Metals Corp.in May 2023.A court order laterput the corporation into full receivership.

The Yukon government took over the sitefor remediation work that it said could take up to three years.

The mine's receiver, PricewaterhouseCooper(PwC), hasbeen managing the mine ever since but hasbeen unsuccessful in finding a new buyer.

The Yukon Supreme Court had closed the door to the sale process lastspring, saying there was no more money to fund a new sale attempt. Chief Justice Suzanne Duncan authorized PwCinstead to plan a live auction in Whitehorse to sell off the mine's assets.

The court heard on Thursday that the auction was delayed over the summer. The First Nation was able in the meantime to make a private offer on all assets.

"This is an exciting possible solution to what otherwise could be a very tragic situation," Duncan told the court on Thursday, while warning all parties involved to use cautious optimism.

What's behind the offer

PwCtold the court thatit decided to negotiate with the First Nation instead of proceeding with a live auction becauseselling all the assetsto Selkirk would generate more money.

The First Nation's offered purchase price has been sealed by the court for now, thoughPwC spoke of "almost double the value" of what it would get with thelive auction.

Duncan asked how the First Nation's offer differs from earlier, unsuccessful bids to buy the mine. PwCstated that other potential buyers had failed to come up with plans to address crucial issues, such asdeterminingthe feasibility of restarting the mine, doing reclamation work, or planningfor a security payment.

PwCargued that the SFN's offer "addressed these issues and details were clarified in successive discussions."

Selkirk's offer is outlined in a report filed by the receiver to the courtat the end of August. It says the First Nation:

• Plans to complete drilling and exploration within the year to determine whether the mine can restart.
• Intends to address the security payment if the decision is to go ahead with a restart of the mine.
• Won't interfere with the Yukon government's reclamation activities.

The First Nation'sultimate goal, according to an emailed statement to CBC News,is to prevent permanent closure of the mine site.

That could "keep a foot in the door for potential exploration which economically, could significantly benefit our community, as well as the broader Yukon region, by creating jobs, training opportunities, and business contracts," the statement reads.

"With SFN as owners of the assets, we can strive for economic growth in all future activities while prioritizing the environment as guided by our traditional laws and practices."

The statement does not provide details on how the First Nation will do that.

The court's decision

The Yukon Supreme Court approved the first of two transactions that could finalize a deal with the First Nation.

Duncan signed off on the sale of all facilities at the mine includingthe mill andwater treatment building as well as some equipment. She also granted exclusivity to negotiate intangible assets for the second transaction, such asthe mineral claims, licences and permits.

The First Nation and the territorial government have until the end of the month to negotiatethe second transaction, with possibility to obtain an extension.

"The Yukon government will continue to prioritize opportunities for the involvement of Yukon First Nations in economic opportunities associated with mining activities," the government said in an emailed statement.

"This court decision offers significant opportunities for Selkirk First Nation and we look forward to the benefits that this could bring to the First Nation, the region, and the broader territory."