Mutually beneficial partnerships
Forming partnerships and establishing production agreements on early-stage projects at the outset is a critical component of Tectonic’s business model. Discovery-to-production agreements, such as that between Tectonic and Doyon, help manage risks and align the interests and expectations of all parties involved, streamlining the task of advancing a project from discovery through to the potential development of a mine. By clarifying the processes involved at the various stages of development, all parties, including future investors, have an understanding of the requirements necessary to bring a project to fruition.
This type of deal is beneficial for both parties: Tectonic can re-invest in exploration and commit even more deeply with Doyon, while Alaska-based Doyon is able to advance promising projects on their own land and support a well-led, experienced junior mining company while participating in any upside that results from their exploration efforts. By partnering with the region’s indigenous Doyon people, who have found a way to balance their heritage with industry, Tectonic is positioned for expansion and Doyon is positioned to share in any success Tectonic may have.
Investing in community
In addition to deepening its business relationship with Doyon, Tectonic has committed to contributing to the Doyon Foundation through an annual US$10 000 – US$25 000 scholarship for the term of each mineral property lease. This foundation provides educational, career and cultural opportunities to enhance the identity and quality of life for Doyon shareholders, providing basic and competitive scholarships. It also works with organisations to place interns and advance traditional Native knowledge by partnering with various organisations such as Tectonic.
The Tectonic scholarship amount increases to US$50 000 each year following the commencement of commercial production at two new sites, the Carrie Creek or Mount Harper Property, and 2018’s project acquisitions, Seventymile and Northway. As corporate returns increase, so does re-investment in the community. This is just one step in the continuing partnership between Tectonic and Doyon as the company explores the rich mineral potential of Alaska in an ethical, fair way.
Tectonic’s approach to investment invites a new standard and model of engagement and partnerships with indigenous groups. It is a product of a partnership where local communities are not only consulted with but become active, vested participants in the mineral exploration operation and any subsequent stages to a project.
Building strong indigenous partnerships must play a key role in effective resource development. A mutually beneficial mineral lease property agreement can cover all aspects of exploration through to production, including royalties. These types of agreements align the interests and expectations of all parties involved, reduces risk, and streamlines the process of advancing a project from discovery through to the development of a mine, if and when that is achieved. They can also ensure that the inequities of the past continue to be redressed and move into a future in which everyone benefits, not just the few.
The first part of this article is available here.
Read the article online at: https://www.globalminingreview.com/special-reports/03122020/investing-in-the-past-present-and-future/
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Flender has received the Supplier Excellence Recognition Award from Caterpillar.