Osisko Development’s Cariboo gold project faces legal threat as Xatśūll demands consent

The Xatšŭll First Nation may sue the British Columbia government and Osisko Development (TSXV: ODV; NYSE: ODV) if its concerns aren't addressed in the permitting process for the Cariboo gold project.

The project threatens community health, cultural sites, and traditional practices due to potential contamination and restricted land access, the Nation said in a statement Thursday.

“If the permitting processes move ahead without addressing our concerns, any permits that are issued will be highly vulnerable to legal challenges,” Chief Rhonda Phillips said.

The Xatšŭll has called on the British Columbia government and Osisko Development to halt the project until its issues are resolved, and its free, prior and informed consent is granted.

Cariboo is in the permitting stage, with a Jan. 2023 feasibility study outlining an initial production to start next year. The project received an environmental assessment certificate in Oct. 2023, with final permitting expected by December. It aims for ~164,000 oz. gold annually, peaking at over 220,000 oz. during its 12-year mine life.