WHITEHORSE – The Government of Yukon has transferred a $5.9 million royalty payment received from Minto Explorations Ltd. to the Selkirk First Nation government.
The Yukon government administers the mineral rights at the Minto Mine under provisions of the Quartz Mining Act and the Selkirk First Nation Final Agreement. The royalty payment was calculated from production profits from the Minto Mine during 2009 and transferred to the Selkirk First Nation as the owner of the mineral rights.
In addition, the Yukon government has approved Minto Explorations Ltd. to fund $1.4 million for the construction and operation of an early childhood development centre in Pelly Crossing under the Community Economic Development Expense Allowance.
The Community Economic Development Expense Allowance provision was included in the new Yukon government royalty regulations to facilitate investment in community infrastructure by the mining industry. Yukon is only the second jurisdiction in Canada to include this type of provision in a royalty regulation.
Minto Mine is one of the few mines in Canada operating on lands where a First Nation government owns both surface and mineral rights, classified as Category A Settlement Land in Yukon. Mining royalties are a share of profits from a mine paid to the owner of the mineral rights for permitting and extraction of mineral resources. Royalties are paid every year in which the operating mine returns a profit.
Minto Explorations Ltd. is a wholly owned subsidiary of TSX listed Capstone Mining Corp. For more information on mining in Yukon, visit www.emr.gov.yk.ca/mining.