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Valentine Gold Project Benefits Agreement Announced

Press Release

July 18, 2022

In keeping with its commitment to ensure residents of the province receive economic benefits from its natural resources, the Honourable Andrew Parsons, Minister of Industry, Energy and Technology, today announced that the Provincial Government has signed a benefits agreement with Marathon Gold Corporation for its Valentine Gold Project.

In accordance with the benefits agreement, Marathon has established project offices in the province and will provide Newfoundland and Labrador residents and suppliers full and fair opportunity and first consideration for employment and procurement opportunities in relation to the construction and operation phases of the project. This includes a commitment that during the construction and operation phases no less than 85 per cent of the project workforce will be provincial residents. In addition, Marathon will work with provincial educational institutions on developing mining courses to help build qualifications for residents of Newfoundland and Labrador. A summary of the benefits agreement is included in the Backgrounder below.

When completed, the Valentine Gold Project will be the largest gold mine in Atlantic Canada.

Located 80 kilometres southwest of Millertown in Central Newfoundland, the Valentine Gold Project is expected to generate more than $750 million in income to workers and businesses located within the province.

Construction of the mine and mill is expected to begin in the third quarter of 2022 (subject to federal environmental assessment release) and last for 24 months. According to the company, the Valentine Gold project will create approximately 11,000 person years of employment in the province, including an annual average of 725 persons. Based on an April 2021 Feasibility Study, the initial capital investment is estimated at $305 million, with the life-of-mine capital investment estimated at $662 million. Marathon Gold estimates this project will contribute nearly $3 billion to the provincial GDP, and approximately $400 million in incremental revenues to the Newfoundland and Labrador treasury.

Newfoundland and Labrador’s mining industry continues to experience significant growth and is a key economic driver. In 2021, mineral shipments were valued at $6 billion, the highest value on record for the province, and mining employment was the highest since 2013, generating over 8,000 person years of employment.

Quotes
“Newfoundland and Labrador’s mineral industry continues to be a key economic driver for the province and a focus for investment attraction efforts. This benefits agreement ensures that residents will be the primary beneficiary of our resources as we continue to work collaboratively with another mining company to grow the industry here. I look forward to seeing this mine operational and the associated economic benefits for the region and the province.”

Honourable Andrew Parsons
Minister of Industry, Energy and Technology

“The Valentine Gold Project promises to be an important cornerstone of the Newfoundland and Labrador economy for many years, and will be particularly important to the communities of central Newfoundland. This Benefits Agreement reflects our commitment to maximizing the benefits that will flow to the province from the project, through employment, contracting, skills development, and the participation of groups traditionally under-represented in the mining industry. We are looking forward to final release from our federal Environmental Assessment, and the commencement of construction.”

Matt Manson
President and CEO, Marathon Gold Corporation.

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Kelly-Anne Roberts
Industry, Energy and Technology
709-729-5248, 327-7005
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BACKGROUNDER

Summary of Commitments

Benefits Agreement with Marathon Gold Corporation

Full and Fair Opportunity and First Consideration

  • Provided to Newfoundland and Labrador residents and businesses for procurement and employment opportunities.
  • Extends to contractors and subcontractors.
  • Establish processes to communicate employment and procurement opportunities.

Enhanced Employment Commitments

  • No less than 85 per cent of the Project workforce will be provincial residents.
  • Use all commercially reasonable efforts to achieve 100 per cent provincial workforce.

Project Management and Engineering

  • Establish and maintain project offices in the province.
  • Requirement for lead engineering contractor to establish and maintain offices in Newfoundland and Labrador.
  • No less than 85 per cent of Project management, engineering, procurement and construction management person hours will be performed in the province.
  • Ensure hiring of Project personnel is coordinated and led by Marathon or its major contractors from offices in the province.

Supplier Development

  • Collaborate with Government to facilitate participation from provincial Suppliers.
  • Supplier Development and supplier information sessions held in the Province.
  • Development of an inclusion strategy for local contractors to help with qualifying, bidding and on executing contracts.
  • Development of timely communication tools to inform suppliers about the project.

Education and Training

  • Construction phase commitment of 10 per cent of skilled trades will be registered apprentices with operations phase increasing to 15 per cent.
  • Use of Provincial graduates and/or co-op students will be maximized.
  • Collaborate with Government, education and training institutions and industry stakeholders to identify local skills shortages, and support joint strategies for development of programs that support mining.

Research & Development

  • Hold research and development information sessions in the Province.
  • Utilization of provincial institutions for R&D and also help build R&D capacities.
  • Collaborate with Government and industry and contribute to feasible mining industry related research and development projects(s).

Gender Equity and Diversity

  • Fully implement and abide by its Gender Equity, Diversity and Inclusion Plan, which includes employment targets for women, persons with disabilities, visible minorities, and Indigenous persons.

Reporting

  • Detailed quarterly and annual reporting throughout of the life of the Project.

Dispute Resolution

  • Established process to resolve disputes with good faith discussions including time related notice periods.
  • If the parties are not able to resolve the dispute, either party may take action permitted by law to resolve the dispute.

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