BC First Nation terminates agreements with Spanish Mountain Gold, shares plunge
SMG is advancing namesake project in the province's Cariboo region.
Xatśūll First Nation, an Indigenous group in British Columbia's Cariboo region, has terminated its agreements with Spanish Mountain Gold (SMG), a company advancing its Spanish Mountain Gold project in the area. The company's shares dropped following the news. Xatśūll and SMG had agreements since 2012 and 2021 to support negotiations for a relationship agreement concerning the proposed mine at Spanish Mountain.
However, the project has undergone significant changes, making the prior agreements irrelevant. In April 2026, Xatśūll gave SMG formal notice to terminate the 2021 engagement protocol, and in September 2026, they notified SMG of terminating the 2012 Protocol Agreement. Xatśūll supports sustainable resource development that respects First Nations rights and protects the lands and waters.
The company did not issue a statement, but in September, SMG said it could resume the paused Environmental Assessment and permitting process. SMG is now expected to submit an updated draft Detailed Project Description in Q4 2026 and formally submit the draft in Q1 2027, contingent on geotechnical and condemnation drill results. Shares of SMG fell 14.7% by market close in Toronto, with a market capitalization of C$135.4 million.
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