The Phandelvers Pact

More than five hundred years ago, clans of dwarves and gnomes made an agreement known as the Phandelver’s Pact, by which they would share a rich mine in a wondrous cavern known as Wave Echo Cave. In addition to its mineral wealth, the mine contained great magical power. Human spellcasters allied themselves with the dwarves and gnomes to channel and bind that energy into a great forge (called the Forge of Spells), where magic items could be crafted. Times were good, and the nearby human town of Phandalin (pronounced fan-duh-lin) prospered as well. But then disaster struck when orcs swept through the North and laid waste to all in their path. A powerful force of orcs reinforced by evil mercenary wizards attacked Wave Echo Cave to seize its riches and magic treasures. Human wizards fought alongside their dwarf and gnome allies to defend the Forge of Spells, and the ensuing spell battle destroyed much of the cavern. Few survived the cave-ins and tremors, and the location of Wave Echo Cave was lost.
For centuries, rumors of buried riches have attracted treasure seekers and opportunists to the area around Phandalin, but no one has ever succeeded in locating the lost mine. In recent years, people have resettled the area. Phandalin is now a rough-and-tumble frontier town. More important, the Rockseeker brothers — a trio of dwarves — have discovered the entrance to Wave Echo Cave, and they intend to reopen the mines.
Unfortunately for the Rockseekers, they were not the only ones interested in Wave Echo Cave. A mysterious villain known as the Black Spider controls a network of bandit gangs and goblin tribes in the area, and his agents have followed the Rockseekers to their prize. Now the Black Spider wants Wave Echo Cave for himself, and he is taking steps to make sure no one else knows where it is.

Structure

The pact was, initially, an agreement between a gnome and dwarf clan. Later, a group of human spellcasters and those of the town of Phandalin became allied with them.
The formal agreement of the pact was essentially that the three parties would share the profits of the Wave Echo Cave. The cave had great mineral wealth, and was highly magical. The human mages, along with the original clans of the pact, bound the magical energy into a forge known as the Forge of Spells. The magical forge could be used to enchant items, such as dwarven weapons and gnomish gadgets.

History

After the pact was established, all parties benefited greatly. Phandalin, especially, became very prosperous.
In 951 DR, orcs formerly led by Uruth Ukrypt laid waste to the entire town of Phandalin. All parties of the pact fought together, but were severely outmanned, and were eventually overthrown. The successful pact ceased to exist once the orcish brutes destroyed most of the area. The cavern became lost to history.
In 1491 DR, Gundren Rockseeker believed he had found the location of the legendary mines of the Phandelver’s Pact