Taseko Mines (TSX: TKO) ends two-decade conflict with Tŝilhqot’in Nation in historic New Prosperity agreement

Why Did Taseko Mines Announce a Landmark Deal Over the New Prosperity Project?

Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO), a mid-tier Canadian mining company, has formally concluded a complex legal and cultural standoff with the Tŝilhqot’in Nation and the Province of British Columbia over its New Prosperity copper-gold mineral tenures. On June 5, 2025, the company confirmed that the three parties signed a landmark consent-based agreement that ends years of litigation and unlocks future development pathways for one of Canada‘s largest undeveloped mineral deposits.

The New Prosperity deposit, which contains 5.3 billion pounds of copper and 13.3 million ounces of gold in measured and indicated resources, has been the subject of prolonged regulatory and legal battles for more than 15 years. At the core of the conflict was the proposed mine’s proximity to the culturally significant Teẑtan Biny (Fish Lake) area—within Tŝilhqot’in territory. The new agreement recognizes both the economic value of the project and the Nation’s right to self-determination, marking a major moment in Canada’s evolving natural resource governance.

What Are the Terms of the Taseko–Tŝilhqot’in–BC Agreement?

Under the terms disclosed, Taseko Mines will receive a C$75 million payment from the Government of British Columbia upon closing. In return, the company will transfer a 22.5% interest in the New Prosperity mineral tenures to a trust set up for the benefit of the Tŝilhqot’in Nation. This interest will be transferred to the Nation itself only if it chooses, of its own accord, to support mineral development at the site.

Crucially, Taseko retains a 77.5% ownership stake but has relinquished any role as future operator or project proponent. It may divest its interest to third-party developers, but no exploration or development can proceed without the Nation’s free, prior, and informed consent. A consent agreement signed by both parties now governs any future mining-related activity in the region.

This structure is a first-of-its-kind hybrid that balances corporate ownership rights with Indigenous governance, offering a practical model of reconciliation that aligns with British Columbia’s 2019 adoption of the UN Declaration on the Rights of Indigenous Peoples (UNDRIP).

How Did the New Prosperity Conflict Begin—and What Changed?

Taseko originally launched the Prosperity Project in 2008, receiving provincial environmental clearance in 2010. However, federal environmental approvals were denied twice—first in 2010 and again in 2014—due to concerns over water management and Indigenous opposition. In 2014, the Supreme Court of Canada issued a precedent-setting ruling granting Aboriginal title to parts of Tŝilhqot’in territory, reinforcing the Nation’s legal standing.

From 2017 to 2019, the project entered another cycle of court disputes after Taseko was granted approval for a site investigation program. That process was halted by an injunction from the British Columbia Court of Appeal, with the case eventually paused in favor of confidential negotiations. Those negotiations, facilitated by the province, have now culminated in this historic deal.

What Is the Strategic Value of the New Prosperity Deposit?

The New Prosperity mineral tenures include a mineral lease and 85 mineral claims located 125 kilometers southwest of Williams Lake. Based on a 2009 technical report, the deposit contains approximately 1.01 billion tonnes of measured and indicated resources at grades of 0.24% copper and 0.41 g/t gold. While this makes it one of the largest undeveloped copper-gold deposits in North America, Taseko has not updated the resource estimate or declared the property as material under NI 43-101 due to the ongoing legal uncertainty.

That said, rising global copper demand driven by electrification, energy transition, and supply chain reshoring is likely to reframe the project’s long-term economic potential. The deposit’s sheer size and location in a mining-friendly jurisdiction suggest that, if consent is granted, New Prosperity could attract interest from major developers or strategic investors seeking long-term copper exposure.

How Are Analysts and Investors Reacting to the Agreement?

Initial investor sentiment toward Taseko has been cautiously positive. While the company is effectively stepping back from operational leadership of New Prosperity, it has gained regulatory clarity, reduced litigation risk, and received a substantial C$75 million cash infusion. The market perceives this as a de-risking event that could eventually unlock optionality for monetization or sale.

Early trading following the announcement showed modest volume upticks, with no significant sell-off. Buy-side analysts suggest the deal removes a legacy overhang and improves Taseko’s ESG profile, making it more investable for funds with sustainability mandates.

Institutional interest remains neutral for now, with investors awaiting further clarity on whether the Tŝilhqot’in Nation might eventually greenlight development or if Taseko will pursue a sale to a third party. For now, the company’s core asset remains the Gibraltar Mine, which continues to generate cash flow.

What Role Did British Columbia Play in Finalizing the Agreement?

The Province of British Columbia played a critical facilitative role throughout the negotiation process. Provincial Ministers Jagrup Brar (Mining and Critical Minerals) and Christine Boyle (Indigenous Relations and Reconciliation) framed the deal as a flagship example of reconciliation in action. By integrating the terms of the Gwets’en Nilt’i Pathway Agreement and committing financial support to the Tŝilhqot’in Nation for land-use planning and cultural revitalization, the province has signaled a new approach to resource governance—one that prioritizes Indigenous consent over regulatory imposition.

British Columbia’s willingness to settle rather than litigate sends a strong signal to other developers: project certainty increasingly hinges on negotiated alignment with Indigenous communities. This is especially true as Canada faces pressure to accelerate critical mineral development without sacrificing rights recognition or environmental standards.

What Does This Mean for Canada’s Mining Sector?

The Taseko–Tŝilhqot’in agreement is likely to ripple across Canada’s mining sector. It sets a high bar for consent-based development and may serve as a model for resolving stalled or contested projects across British Columbia, the Yukon, and even Quebec. With global capital watching how Canadian jurisdictions handle Indigenous relations, the deal is a reputational win for both provincial authorities and Taseko.

The mining industry, facing growing scrutiny over ESG credentials, may look to replicate this structure elsewhere—especially in areas with unsettled land claims. Consent frameworks tied to trust structures and co-ownership may become a more accepted norm, changing how feasibility assessments, permitting, and project financing are conducted.

From a broader policy lens, the deal aligns with Canada’s ambition to lead in responsible mining and to secure critical mineral supply chains while building trust with Indigenous Nations.

What Is the Future Outlook for Taseko and the New Prosperity Project?

While New Prosperity’s development timeline remains uncertain, Taseko has created space for potential upside through its retained interest. If the Tŝilhqot’in Nation elects to pursue development in the future—or if a new proponent is able to gain their support—the deposit could re-emerge as a major strategic asset.

For now, Taseko will likely focus on optimizing its Gibraltar operations and reviewing potential divestment or partnership opportunities for New Prosperity. The C$75 million payment also strengthens its balance sheet, enabling flexibility in capital allocation.

Meanwhile, the Tŝilhqot’in Nation gains a mechanism to protect and manage its land while exploring opportunities for culturally aligned economic development. With support from the province for land-use planning and cultural initiatives, the Nation can reframe the narrative around resource control in its own terms.

Whether New Prosperity eventually becomes a mine is secondary to the larger shift this agreement represents. It is a rare instance where reconciliation, corporate interest, and legal clarity have aligned—not through litigation, but through negotiation.