Xatśūll First Nation of the Cariboo region of the Central Interior of British Columbia said Thursday it has terminated its agreements with Spanish Mountain Gold (TSX-V: SPA), which is advancing its eponymous project in the region. Its shares plunged.
“Xatśūll First Nation and Spanish Mountain Gold (SMG) previously entered into agreements in 2012 and 2021 to support negotiations toward a relationship agreement regarding the proposed mine at Spanish Mountain, Xatśūll said in a news release.
A relationship agreement was never finalized. Since that time, the project has undergone significant and fundamental changes, Xatśūll said.
“As a result, the prior agreements no longer reflect the proposed project or provide the framework necessary to support a collaborative and mutually beneficial relationship between Xatśūll and SMG.”
In April 2026, Xatśūll provided formal notice to SMG that it was immediately terminating the 2021 engagement protocol. In September 2026, Xatśūll provided notice to SMG that it was also terminating the 2012 Protocol Agreement.
There are no other agreements in place between SMG and Xatśūll.
“Spanish Mountain is a place where Xatśūll members continue to gather foods and medicines, camp with family, access the land for recreation and cultural well-being, and maintain living connections to spiritually and culturally significant places,” said Kúkwpi7 (Chief) Rhonda Phillips.
“Xatśūll supports sustainable resource development that upholds First Nations rights and protects the lands and waters that our people have stewarded since time immemorial. We will be intentional about how industrial activity proceeds in an area that holds such significant cultural, spiritual and ecological importance to our Nation,” Phillips said.
SMG did not issue a statement Thursday, but in a Sept. 21 release, the company said it received confirmation from Provincial regulators to resume the previously paused Environmental Assessment and permitting process.
“From March to August 2026, SMG worked closely with BC Environmental Assessment Office, Impact Assessment Agency of Canada, participating Indigenous Nations and local communities to secure authorization in August from BCEAO to resume the previously paused combined provincial and federal Environmental Assessment processes,” SMG said.
“Consequently, pending geotechnical and condemnation drill results, SMG is on track trending towards delivering an updated draft Detailed Project Description in Q4 and formal submission of the DPD in Q1 2027.
By market close in Toronto, SMG shares were down 14.7%. The company has a C$135.4 ($98.1 million) market capitalization.
