THE DEAL

In April 1995, Loki and TH signed off on a 6-point Heads of AgreementHeads of Agreement: a non-binding summary of the main issues on which the parties intend to base an agreement. – an agreement in principleAgreement in Principle: an agreement which participants are not legally obliged to keep. It is therefore non-binding. that would become the basis for a more detailed and legally binding agreement. The agreement gave Loki the support and stability it needed. One clauseClause: a subdivision (often numbered) of a document, that clarifies, defines, or explains the subject matter. Often called a provisionProvision: an action or item stipulated by an agreement. Often called a clause.. stipulated a cash settlement for quiet enjoymentQuiet Enjoyment: the right to the undisturbed use of property by a tenant or landowner. on the part of Loki. Another clause stipulated preferential contracting treatment for small, owner-operated Aboriginal businesses and in specified cases “sole source” contracting for TH. (That is, these contracts would be earmarked for TH alone to provide.)

In the meantime, TH had been in Joint Venture negotiations with Procon Mining and Tunneling and Viceroy. Once the Heads of Agreement was signed, TH introduced these Joint Venture partners to the Loki negotiating team. The Loki representatives had not expected that the First Nation would be in a position to take advantage of this clause. They were quite shaken by the caliber of TH’s partners. Subsequently, TH won the contract to build an access road to the mine and to construct portions of the leach pad. In turn TH provided Loki with a quarry permit that enabled the company to haul gravel from interim protected TH settlement land.

(That August the memorandum was broadened to include another clause. It required Loki to pay compensationCompensation: something (such as money) given or received as payment or reparation (as for a service or loss or injury). to TH members who could demonstrate that they suffered economic loss or reduction in harvesting opportunities.)

The complete socio-economic development agreement was signed in September 1997. It included employment, scholarships, finder’s fees, preferential contracting treatment, and a framework for exploration and Joint VenturesJoint Venture: commonly, a business to which two or more parties contribute the essential land, capitalCapital: cash, property, equipment, services, and contracts or leases., and services, in return for a share in its ownership and control. (Note: the Joint Venture is very strictly defined under Canadian law.) on TH settlement land. It also gave TH representation at technical, operational, and environmental management meetings.