On January 26, 2012, Nighthawk Gold Corporation completed an agreement to acquire 100% of the mineral claims and leases of the former producing Colomac Gold Mine and surrounding mineral leases (Colomac Property), from then Aboriginal Affairs and Northern Development Canada (AANDC) now Crown Indigenous Relations and Northern Affairs Canada (CIRNAC).

In accordance with water licensing laws and regulations in Canada, Royal Oak Mines had posted a $1.5 million security deposit and in 1999 they were charged with cyanide dumping by the Federal Government.

The government of Canada had estimated the cost of the cleanup at $70 million due to high levels of cyanide and ammonia content, as well as acid mine drainage.

For the people of Indin Lake the tailing pond owned by the mine was at one stage threatening to overflow unless immediate action was taken to prevent a disastrous environmental impact.

In 1999, the Department of Indian Affairs and Northern Development (DIAND) awarded a one-year, $2 million contract to a consortium of aboriginal businesses from DetonÇho Corporation, the Dogrib Rae Band and the North Slave Métis Alliance to undertake final reclamation activities at the Colomac Mine.

According to MineWatch Canada in a 2001 publication: "Now, the water license has not been changed, the money needed to clean-up the site is not forthcoming, and the Dogribs are faced with a potential catastrophe if the tailings pond overflows.