Rae-Edzo (Apr 03/06) - The Tlicho government has reached a financial agreement with international diamond-giant DeBeers over its Snap Lake mine, located in the barrenlands about 220 kilometres northeast of Yellowknife.

The terms of the deal, which compensates the Tlicho for use of their traditional land, have not been released but Grand Chief George McKenzie called the settlement an important step for the 3,500 beneficiaries.

"It ensures that benefits from the third diamond mine in the Northwest Territories are enjoyed by those among our people who may not be able to participate directly in the mining economy," said McKenzie in a media release. He was not available to answer questions Friday.

The deal is the second DeBeers has completed for the estimated $636-million Snap Lake mine. In November 2005, the South Africa-based company reached an agreement with the Yellowknives Dene. That deal came after threats from one Yellowknives chief to set up a "blockade" along the winter road that leads to the mine site.

These negotiations however, appear to have been smoother.

"This agreement builds on our successful business relationship which we have already established with the Tlicho Government," said Debeers Canada President Richard Molyneux.

DeBeers has already spent over $120 million on Snap Lake and the mine is scheduled to come into production sometime in 2007. It will provide an estimated 500 jobs and produce 1.5 million carats of diamonds per year.