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Alexco Resource Corp. (TSX:AXR,NYSE:AXU) announced that they have signed an Amended and Restated Environmental Subsidiary Agreement with which indemnifies Alexco from all historical mining liability and set out detailed terms for clean up of the Keno Hill Silver District
Alexco Resource Corp. (TSX:AXR,NYSE:AXU) announced that they have signed an Amended and Restated Environmental Subsidiary Agreement with which indemnifies Alexco from all historical mining liability and set out detailed terms for clean up of the Keno Hill Silver District.
As quoted in the press release:
Highlights of the ARSA:
Recognition that developing the initial Reclamation Plan is more complicated than originally anticipated, so the ARSA provides for Canada to contribute a higher proportion of those costs than provided for under the 2006 Agreement. ERDC will contribute 5% of the Reclamation Plan development costs rather than the previous 35% cost share. ERDC is entitled to recoup approximately $2 million for the Reclamation Plan development costs previously contributed by ERDC in excess of the newly agreed proportion.
Adjusts ERDC’s participation in ongoing environmental care and maintenance costs. The 2006 Agreement contemplated ERDC paying 15% of such costs, with its share annually increasing by 15%, up to 100% of the costs. The ARSA now provides for these costs to be shared approximately 50/50, with Canada paying ERDC $850,000 annually to continue the care and maintenance work.
If the final closure work is completed under budget, Alexco recoups any balance in a $10 million trust established by Alexco to fund the Reclamation Plan.
Alexo’s President and CEO, Clynt Nauman, said:
Changes in our agreement with Canada will ensure that projects don’t get bogged down through an overly cumbersome approval process while adding firm predictability to ERDC’s long-term, future work at Keno Hill. We appreciate the fairness and cooperation the Canadian government has shown through our efforts to conclude an amended agreement that is commercially fair for ERDC while potentially reducing the costs of cleanup to the Canadian taxpayer. Further, the agreement ensures that Yukon and First Nations governments benefit from ongoing input to the reclamation and closure plan.
To view the whole press release, click here.
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