Prior to market open, Galaxy Resources (ASX: GXY) announced that the Grand Council of the Cree, the Cree Nation Government and the Cree Nation of Eastmain have entered into a Pre-Development Agreement in regards to the development of the James Bay Lithium Mine. It also announced that the Environmental and Social Impact Assessment for the James Bay Lithium Project is completed.
According to the signed agreement on 15 March 2019, Galaxy notified the Cree parties of employment and training opportunities and maximising that available for the local Cree community. The business is also promised to preferential hiring of qualified Cree and to hire a local Community Liaison Coordinator for a Galaxy office in Eastmain. Whilst the Cree parties to be responsible for supporting and facilitating the pre-development and the future’s project development.
The Environmental and Social Impact Assessment stands for a critical milestone in the regulatory review process with the Cree Nation Government and federal and provincial authorities. Denis Couture, General Manager of Galaxy Lithium (Canada) Inc. said “we look forward to working in collaboration with the Cree, the COMEX, both provincial and federal authorities through the assessment and review process. We are also very proud of the PDA agreement with the Cree Nation, as it represents an important milestone regarding our relationship with the community and the Cree Nation Government.”
Galaxy Resources’ update was intriguing though was unable to prevent the company from falling to a new 52-week low. Despite its high-quality assets and sizeable cash balance, Galaxy Resources has been under pressure in more recent times given the downward trend of lithium prices as well as continued uncertainty regarding a potential oversupply in the medium-term.