AurCrest Gold, Lac Seul First Nation and Bluesource sign Adoption Agreement to proceed with a GHG emission sequestration project and monetize carbon offsets in the Boreal Forest
Suite 3600, 22 Adelaide Street West, Toronto, Ontario M5H 4E3 · Tel: (807) 737-5353
AurCrest Gold, Lac Seul First Nation and Bluesource sign Adoption
Agreement to proceed with a GHG emission sequestration project
and monetize carbon offsets in the Boreal Forest
NEWS RELEASE FOR IMMEDIATE RELEASE
MAY 11, 2020 TSXV Symbol: AGO
Toronto, Ontario May 11, 2020 - AurCrest Gold Inc. (the “Company” or “AurCrest”) (TSX-V: AGO)
is pleased to announce that, on May 8, 2020, an Adoption Agreement (the “Adoption Agreement”) was
signed by the Company, the Lac Seul First Nation (“ Lac Seul ”) and Blue Source Canada ULC
(“Bluesource”) to develop a forest carbon project on the forested lands on the Lac Seul reserve northwest
of Sioux Lookout, Ontario.
On August 19, 2019, the Company announced that it had signed a Carbon Development & Marketing
Agreement (“CDMA”) with Bluesource. The CDMA set forth the terms and conditions by which the
Company and Bluesource will collaborate to develop carbon sequestration opportunities and market the
resulting carbon offsets alongside First Nations pursuing their inherent stewardship role both on reserve
and within their traditional territories. The CDMA provides that specific forestry projects with First
Nations will be incorporated into the CDMA through the execution of an Adoption Agreement allowing
Bluesource to provide its services to develop and market Emission Reduction Benefits (“ERBs”), being
environmental and financial benefits associated with the carbon sequestration from enhanced
management of the forest resource.
Bluesource is the leading carbon offset developer in North America and is recognized as such by clients
and industry peers in the Environmental Finance rankings. It has a particularly strong track record in
developing forest carbon projects for landowners and indigenous communities across North America.
Bluesource leverages both its technical capacity and transactional capability in carbon markets to help
forest owners evaluate opportunities and generate value in diverse carbon markets by developing and
monetizing offsets on their behalf.
On December 13, 2019, the Company announced that it had signed an Emissions Reduction Benefits
Management Agreement (“ERBMA”) with Lac Seul to develop forest carbon sequestration opportunities
in the First Nation’s traditional territory in Northwestern Ontario.
Lac Seul plays a central role in the management of the forests in its traditional lands, both as customary
stewards of the land and as a party to certain legal agreements with the province of Ontario.
Under the terms of the ERBMA, AurCrest has been appointed by LSFN as the sole and exclusive agent
for LSFN to act as manager to develop projects within the traditional territory of the LSFN to harvest
2
Suite 3600, 22 Adelaide Street West, Toronto, Ontario M5H 4E3 · Tel: (807) 737-5353
ERBs. AurCrest entered into the CDMA with Bluesource to provide the expertise associated with
development and monetizing the carbon offsets.
The signing of the Adoption Agreement between the three parties marks a significant milestone in the
ERB project development, enabling AurCrest to now move forward with Lac Seul and Bluesource to
develop and implement an emission reduction and sequestration project initially focussing on Lac Seul’s
reserve lands. AurCrest, together with Lac Seul, will continue to extend invitations to participate to other
regional First Nations for subsequent projects and target areas within Northwestern Ontario’s Boreal
Forest.
The benefits derived from the monetization of ERBs, net of expenses, will be split with the significant
majority going to Lac Seul and the remainder to AurCrest and Bluesource. The management agreement
has an initial term of five years commencing from the date the first ERBs available for sale are generated
by the project. At the end of the initial five year term, Lac Seul can purchase the interest of AurCrest and
Bluesource for fair market value. If the interest is not purchased at the end of the initial five years, the
management agreement continues for a further five years after which time AurCrest and Bluesource’s
interest will be relinquished to LSFN.
Christopher Angeconeb, AurCrest President and CEO stated “As a member of the Lac Seul First Nation, I
am very pleased that the Lac Seul Chief and Council have continued to move forward with AurCrest and
Bluesource, through this Company’s model of participation and inclusion with our First Nations
neighbour communities, to turn the historical role of indigenous people as stewards of the land into a
modern model of indigenous-led environmental and community sustainability. I am very pleased that
AurCrest is the first publicly traded company in Canada to be able to pursue this carbon sequestration
opportunity. I am also proud that the Company’s model represents a holistic approach to economic and
resource development, as a partnership between indigenous and non-indigenous peoples of Canada, for
the mutual benefit of all for generations to come.”
About AurCrest Gold Inc.
AurCrest is a mineral exploration company focused on the acquisition, exploration, and development of
gold properties. AurCrest has a portfolio of properties in Ontario, which include the Richardson Lake and
Bridget Lake gold properties.
FOR FURTHER INFORMATION PLEASE CONTACT:
AurCrest Gold Inc.
Christopher Angeconeb Ian Brodie-Brown
President and C.E.O Director of Business Development
(807) 737-5353 (416) 844-9969
[email protected] [email protected]
3
Suite 3600, 22 Adelaide Street West, Toronto, Ontario M5H 4E3 · Tel: (807) 737-5353
Forward Looking Statement:
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and
uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future
plans and objectives of the Company are forward looking statements that involve various risks. The following are important
factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward
looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in
mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future
profitability and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will
prove to be accurate as actual results and future events may differ materially from those anticipated in such statements.
AurCrest undertakes no obligation to update such forward-looking statements if circumstances or management’s estimates or
opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.