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Mining Option Agreement
"I need a Mining Option Agreement for a gold exploration project in British Columbia, where my company will have the option to acquire 75% interest in the property over 3 years, with staged payments totaling CAD 2.5M and minimum work commitments of CAD 5M, including provisions for Indigenous consultation with local First Nations."
1. Parties: Identification of the optionor (property owner) and optionee (company acquiring the option)
2. Background: Context of the agreement, including property overview and purpose of the option arrangement
3. Definitions: Detailed definitions of technical mining terms, financial terms, and other key concepts used in the agreement
4. Grant of Option: Core terms of the option grant, including exclusive rights and basic conditions
5. Option Period: Duration of the option and any extension provisions
6. Option Exercise: Mechanics and requirements for exercising the option
7. Consideration: Details of payments, share issuances, and other consideration for the option
8. Work Commitments: Required exploration expenditures and development work during the option period
9. Rights and Obligations During Option Period: Parties' respective rights and responsibilities while option is in effect
10. Representations and Warranties: Standard and mining-specific representations by both parties
11. Operator Rights and Obligations: Requirements for conducting exploration and development work
12. Environmental Obligations: Environmental compliance and rehabilitation requirements
13. Indigenous Consultation: Requirements for Indigenous consultation and accommodation
14. Reporting Requirements: Technical and financial reporting obligations
15. Assignment: Rights and restrictions regarding transfer of the option
16. Termination: Circumstances allowing termination and consequences
17. Force Majeure: Provisions for handling events beyond parties' control
18. Notices: Communication requirements and contact details
19. General Provisions: Standard boilerplate clauses including governing law, dispute resolution, etc.
1. Net Smelter Returns Royalty: Details of any retained royalty rights, used when the optionor retains a royalty interest
2. Area of Interest: Provisions covering newly acquired adjacent properties, used in areas with expansion potential
3. Joint Venture Conversion: Terms for converting to a joint venture upon option exercise, used when parties plan ongoing cooperation
4. Feasibility Study Requirements: Specific requirements for feasibility studies, used in more advanced properties
5. Security Provisions: Requirements for performance bonds or other security, used in higher-risk situations
6. Right of First Refusal: ROFR terms for future property dealings, used when parties want ongoing property rights
7. Community Relations: Specific community engagement requirements, used when significant local impact is expected
1. Schedule A - Property Description: Detailed legal description of the mineral properties, including claims, permits, and coordinates
2. Schedule B - Maps and Plans: Maps showing property boundaries, claims, and significant features
3. Schedule C - Existing Encumbrances: List of any existing royalties, liens, or other encumbrances on the property
4. Schedule D - Required Permits: List of permits, licenses, and authorizations required for operations
5. Schedule E - Initial Work Program: Detailed description of planned exploration and development work
6. Schedule F - Form of NSR Agreement: Template agreement for any retained royalty rights
7. Schedule G - Technical Report: Recent technical reports or resource estimates on the property
8. Schedule H - Indigenous Agreements: Existing agreements or MOUs with Indigenous groups
9. Schedule I - Environmental Liabilities: Known environmental issues or rehabilitation requirements
Authors
Mining
Natural Resources
Energy
Environmental Services
Legal Services
Financial Services
Indigenous Relations
Geological Services
Land Development
Mineral Exploration
Legal
Environmental Compliance
Indigenous Relations
Finance
Operations
Exploration
Business Development
Regulatory Affairs
Land Management
Project Management
Technical Services
Corporate Development
Risk Management
Sustainability
Mining Executive
Exploration Manager
Chief Geologist
Environmental Compliance Officer
Legal Counsel
Land Manager
Indigenous Relations Manager
Chief Financial Officer
Project Manager
Operations Director
Mineral Rights Administrator
Environmental Assessment Specialist
Regulatory Compliance Manager
Business Development Manager
Resource Estimation Specialist
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