Xatśūll First Nation has terminated all agreements it held with Spanish Mountain Gold (TSXV: SPA), leaving the company without a formal framework with one of the three First Nations on whose territories its flagship gold project sits.
The Nation said it gave notice in April that it was immediately ending a 2021 engagement protocol, and followed in September by terminating a 2012 Protocol Agreement. Both were signed to support negotiations toward a relationship agreement for the proposed mine. That agreement was never finalized.
Xatśūll confirmed no other agreements remain in place between the two parties.
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The Nation pointed to “significant and fundamental changes” to the project, saying the earlier agreements no longer reflect what is being proposed or provide a workable basis for the relationship.
Chief Rhonda Phillips said members continue to use the Spanish Mountain area to gather food and medicines, camp and access culturally and spiritually significant sites. She added that the Nation intends to be deliberate about how industrial activity proceeds in the area.
Spanish Mountain responded a day later with a release that did not directly acknowledge the terminations. Instead, the company said engagement remains active with Xatśūll, Lhtako Dene Nation and Williams Lake First Nation, and directed readers to its MD&A for the period ended June 30, 2026, for context on the status of the agreements.
The company said it is still in dialogue with Xatśūll over the project and additional capacity funding, including support for the Nation’s review of the current project design. It also noted that it previously funded a Traditional Knowledge and Use Study conducted by Xatśūll, and that design refinements since its Initial Project Description reflect First Nations feedback gathered during early engagement.
“We are committed to building relationships with all First Nation communities in the region and to advancing a project that reflects the highest standards of environmental stewardship and community engagement,” said CEO Peter Mah.
On the regulatory side, the provincial Environmental Assessment Office confirmed in August that the company’s plan to resume the environmental assessment is acceptable and that it is not pursuing termination of the assessment. Spanish Mountain expects to submit a Detailed Project Description in Q1 2027.
The company launched a fully funded feasibility study in Q2 2026, which it says will position it for a construction decision in H1 2028.
Spanish Mountain Gold last traded at $0.26 on the TSX Venture.
