ASSET SUMMARY

Operator Lac Seul First Nation, AurCrest Gold Inc., Bluesource Canada ULC
Location Ontario, Canada
Stage Development 
Commodity Federal Output-Based Performance Standards (OBPS) Carbon Offset Credit
Terms 16% Gross Revenue Royalty on AurCrest Gold’s forest carbon sequestration revenue share from the Forest Pilot Project (with a Right of First Refusal on any forest carbon sequestration within the overall Lac Seul Forest Management Unit)

ASSET DESCRIPTION

  • The Government of Canada has mandated minimum standards for carbon pricing across Canada and implemented a federal program applied to greenhouse gas (GHG)-emitting industrial facilities in several provinces, including Ontario
  • Reforestation and the conservation of the boreal forest are creating carbon offsets as trees absorb atmospheric CO2 through photosynthesis and sequester the CO2 into their biomass
  • AurCrest Gold and Bluesource are assisting Lac Seul First Nation in developing forest carbon sequestration opportunities on the Nation’s Reserve lands and Traditional Territory that the parties expect to result in carbon offset credits that can be sold to federally regulated industrial emitters
  • The Lac Seul First Nation Forest Pilot Project covers a forested area of 22,063 hectares of the Nation’s Reserve lands (representing approximately 3% of the overall 800,000-hectare Lac Seul Forest Management Unit) and has the potential to sequester significant amounts of CO2 per year
  • The future benefits derived from the monetization of the carbon offset credits, net of expenses, will be split with the significant majority going to the Lac Seul First Nation and the remainder to AurCrest Gold and Bluesource
  • Star Royalties and AurCrest Gold are working together to identify other carbon sequestration, renewable energy and mining opportunities to pursue