BQI news--CALGARY, May 13 /PRNewswire-FirstCall/ - Oilsands Quest Inc. (Amex: BQI - News) and the Northern Village of La Loche, Saskatchewan, announce the signing of a Memorandum of Understanding ("MOU") regarding the establishment of an economic relationship between the two parties. La Loche is the largest community in close proximity to Oilsands Quests' permit lands in northwestern Saskatchewan.
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The MOU confirms the agreement between the parties to work together to identify and address the economic benefits, as well as environmental, social and other potential impacts on La Loche of Oilsands Quest's exploration activities on its permit lands. By way of the MOU, the parties agree to make reasonable commercial efforts to negotiate a formal exploration agreement that will deal with these matters and, furthermore, that the relationship and participation in a formal agreement will be available to all neighboring communities that are adjacent to and affected by Oilsands Quest's exploration activities.
"I am pleased with the progress we have made in negotiations with Oilsands Quest," said Georgina Jolibois, Mayor of the Northern Village of La Loche. "The MOU is an important milestone. It recognizes the social, economic and environmental impacts that need to be addressed, and it offers new business, education and employment opportunities for local residents, along with new resources to direct to community infrastructure. It also acknowledges the potential impacts and benefits to surrounding communities, which we believe are equally important. We look forward to completing an exploration agreement with Oilsands Quest that embodies the positive principles set out in the MOU."
Christopher H. Hopkins, President & Chief Executive Officer of Oilsands Quest Inc., is also very pleased with the MOU. "This will be a precedent-setting agreement that we believe will set the standard for establishing a meaningful, jointly beneficial socio-economic relationship with our neighboring communities," he said. "We look at this as an opportunity to make a strong commitment to the communities of a large number of our employees, which will help better the lives of our northern employees, their families and neighbors."
At the present time, La Loche and adjacent communities that could participate in the proposed exploration agreement account for approximately 75 per cent of the residents in the area. Since Oilsands Quest began exploration activities on its permit lands in Saskatchewan in 2005, it has followed a policy of employing workers from La Loche and other communities in northwestern Saskatchewan as well as purchasing local goods and services. In the MOU, Oilsands Quest also agrees to assist and cooperate with La Loche and the neighboring communities in their dealing with the governments of Saskatchewan and Canada in relation to the regional environment, economic development, employment for residents, infrastructure, education and training funding, and other relevant policies and programs.
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