In a key step on the development path for the Kambalda Gold & Nickel Project (KGNP) in Western Australia, Lunnon Metals Ltd (ASX:LM8, OTC:LNMLF) has executed a Mining Agreement with the Ngadju Native Title Aboriginal Corporation RNTBC (NNTAC).
This agreement, which covers relevant parts of the KGNP, establishes a comprehensive framework that outlines the terms by which the Ngadju People can benefit directly from development of Lunnon’s gold and nickel portfolio at levels comparable to those paid under similar circumstances in the region.
It principally covers royalties linked to future production while other benefits for the Ngadju People include funding linked to education, cultural awareness programs and conservation initiatives.
Delivers certainty
Importantly for Lunnon Metals, the agreement secures the renewal of the company’s mining licences, delivering certainty beyond the current term ending in December 2025.
In addition, it provides a robust approach to heritage approvals, which recognises the extensive history of mining for gold and nickel that has occurred at the Foster-Baker Project.
Shared commitment
Managing director Edmund Ainscough said: "Lunnon Metals is proud to have proactively engaged with the Ngadju People immediately following its listing in June 2021.
"This agreement has taken over three years to finalise but embodies a shared commitment with the Ngadju People to progress our gold and nickel portfolio towards development and potential future production.
"It also incorporates a modern and pragmatic suite of procedures governing future heritage approvals, covering early-stage exploration right through to development and production, whilst recognising the significant historical mining and exploration that has occurred, especially at the Foster-Baker project, which in its day was a key nickel and gold production centre for past owners of the tenements.”
The company initiated discussions with the Ngadju People shortly after listing on the ASX in June 2021.
Committed to local collaboration
Whilst Lunnon Metals’ tenements at KGNP predate Native Title requirements, the company proactively engaged with the Ngadju People demonstrating a commitment to collaborate with all local stakeholders, especially the traditional custodians of the land on which it operates.
The agreement, and the company’s partnership with the Ngadju People, reflects Lunnon Metals’ ongoing commitment to its ‘Local Content Policy’ which has resulted in greater than 50% of expenditure over the past two financial years being spent locally in the Eastern Goldfields region.
In FY2023 this amounted to 57.1% of expenditure and in FY2024 it totalled 35%.
Strong relationship
This agreement marks further progress in the strong relationship with the Ngadju People, to which Lunnon Metals is committed.
The company looks forward to a long and fruitful relationship with the Ngadju People as it works to progress the emerging and exciting gold potential of its tenements on Ngadju country, together with future development and potential production from its significant nickel mineral resource, when external market conditions for nickel are favourable.