05/15/2012 06:42 EDT | Updated 07/15/2012 05:12 EDT

Canada Lithium signs MOU with First Nations; province approves tailings facility

TORONTO - Canada Lithium Corp. (TSX:CLQ) has reached agreement with local First Nations regarding environmental as well as employment and other issues related to its $207-million mine and processing plant currently under construction north of Val d'Or, Que.

The company also announced it has received provincial approval for the location of its tailings management facility at the open-pit mine. The mine is expected to produce 20,000 tonnes per year of battery-grade lithium carbonate annually.

The memorandum of understanding with the Abitibiwinni First Nation of Pikogan and the Anishinabe First Nation of Lac-Simon covers key areas of mutual interest, including environmental protection, employment and business opportunities and education and training.

"Canada Lithium is committed to working in partnership with our local municipalities and First Nations communities in a manner that fosters active participation and mutual respect," Canada Lithium chief operating officer Charles Taschereau said in a statement.

The approval for the tailings facility location was recently granted by Quebec's Natural Resources Ministry, the company said.

The facility still requires other provincial government approvals.