Skeena Gold + Silver Creating New Entity Bringing Tax Exempt Employment Income Eligibility to Tahltan Nation

Press Release

Following Tahltans’ feedback during the Eskay Creek Revitalization Project IBA tour in September, Skeena Gold + Silver has incorporated a new subsidiary, Skeena Tatl’ah Mining Ltd. and has opened an office on-reserve in Dease Lake.

Skeena Tatl’ah Mining will be locally managed, have its own board of directors – with a majority being Tahltan – and plans to hire between 150 and 200 First Nations employees by 2027 to work on the construction and operation of the Eskay Creek Mine. Employees of Skeena Tatl’ah Mining may be eligible for an exemption from federal and provincial income tax on their wages if they meet the criteria established by the Canada Revenue Agency.

According to Canada Revenue Agency guidelines, Employees working for Skeena Tatl’ah Mining who have registered status under the Indian Act (Canada) and maintain their primary residence on a reserve, should be eligible for tax-exempt employment income, provided that the CRA considers Skeena Tatl’ah Mining to be resident on a reserve. If applicable, this may result in a meaningful increase in after-tax income for those Tahltan who qualify.

“I commend Skeena Gold + Silver for listening to us and undertaking this important initiative. It will attract Tahltans to return home, spur housing and infrastructure investment in Iskut, Dease Lake and Telegraph Creek, and propel our Nation further on our journey towards economic independence.” Kerry Carlick, President, Tahltan Central Government

“I am really excited about the opening of this office because it will encourage more of our people to come home, thereby revitalizing local businesses and indirectly increasing funding for needed services in our Territory such as housing and community services.” Marie Quock, Chief, Iskut Band

“Many of our people both in and outside of Territory have said they want to live and work from home in Tahltan Territory tax exempt. This approach to doing business in Tahltan Territory will establish a lasting precedent and will generate economic benefits by attracting our people back to Tahltan Territory.” Chief Richard (Rocky) Jackson, Tahltan Band

“The opening of Skeena Tatl’ah Mining’s office on reserve was guided by Tahltan Nation’s leadership, setting a new benchmark for collaborative and responsible mining development in Canada. This initiative places community at the heart of our approach and directly reflects our company’s values and commitment to creating lasting socioeconomic benefits for Tahltan communities—for generations to come.”

Walter Coles, Executive Chairman, Skeena Gold & Silver

FAQ

Q. Who qualifies for tax exemption?

A. In Canada, to qualify for tax exemption on employment income as an indigenous person, one typically needs to be (1) registered under the Indian Act; (2) primarily resident on reserve; and (3) employed (in this case by Skeena Tatl’ah Mining Ltd.) by a company resident on a reserve.

It is important to state that individual situations can vary, so it is advisable to consult with a tax professional or the Canada Revenue Agency for specific guidance.

Q. What if I only live part time on reserve?

A. Your primary residence must be on reserve to qualify for an exemption on the basis described above. This means, that part time residence on reserve, or using a family members address on reserve, may not qualify. Skeena Tatl’ah Mining Ltd. will require adequate proof of primary residence from employees wishing to claim an exemption, along with a completed CRA Form TD1-IN.

Again, it is important to state that individual situations can vary, so it is advisable to consult with a tax professional or the Canada Revenue Agency for specific guidance.

Q. Will Tahltans be paid less than non-indigenous people if they qualify for a tax exemption?

A. No. Skeena Tatl’ah Mining determines gross salary or wages on a pre-tax basis, without regard for whether the employee is subject to tax or at what effective rate.

Q. Is this for Tahltans only or will other Indigenous people qualify for tax exemption?

A. As a matter of law, the Indigenous tax exemption is limited to persons who are registered under the Indian Act, and only to the extent that their income is situated on a reserve. Indigenous persons who are Métis, Inuit, or who otherwise are not registered under the Indian Act are, unfortunately, not entitled to claim any exemptions from tax regardless of how unfair this may seem.

Again, it is important to state that individual situations can vary, so it is advisable to consult with a tax professional or the Canada Revenue Agency for specific guidance.

Q. Why is this happening now?

A. For years, Tahltans who are registered under the Indian Act and whose primary residence is on a reserve in Tahltan Territory have been asking for the opportunity to earn tax exempt employment income. Working for Skeena Tatl’ah Mining Ltd. can now serve as an opportunity to do just this.

Following Tahltans’ feedback during the Eskay Creek Revitalization Project IBA tour in September, a new entity (Skeena Tatl’ah Mining Ltd.) has been created and has opened an office on-reserve in Dease Lake.

Q. I would love to have my primary residence at home on reserve in Tahltan Territory but there are no homes available.

A. Over the years, successive Tahltan Leadership groups from all three government entities have heard the strong desire of Tahltans to move home. To facilitate a return to Tahltan Territory, significant improvements in community infrastructure, especially housing, are essential to making this a reality.

The Eskay Creek Revitalization Project IBA will provide the Tahltan Nation with the funds it needs to invest in the community and infrastructure; in particular, developing new subdivisions and water systems in Dease Lake, Iskut, and Telegraph Creek.

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