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Mining Option Agreement
"I need a Mining Option Agreement under Indian law for a gold mining project in Karnataka, where my company will have a 2-year option period with the right to conduct exploration activities and an option fee of 50 million rupees payable in quarterly installments starting March 2025."
1. Parties: Identification of the parties to the agreement, including the option holder and the mineral rights owner
2. Background: Context of the agreement, including details of the mineral rights and property
3. Definitions and Interpretation: Definitions of key terms and interpretation clauses
4. Grant of Option: Terms of the option grant, including exclusivity and duration
5. Option Period: Duration of the option period and any extension provisions
6. Option Fee: Details of the option fee, payment terms, and conditions
7. Exercise of Option: Process and conditions for exercising the option
8. Rights and Obligations During Option Period: Parties' rights and obligations during the option period, including access rights and maintenance of permits
9. Due Diligence Rights: Rights and procedures for conducting technical and legal due diligence
10. Representations and Warranties: Standard and mining-specific representations and warranties from both parties
11. Compliance Requirements: Obligations regarding mining laws, environmental regulations, and other applicable laws
12. Assignment and Transfer: Rights and restrictions regarding assignment of the option agreement
13. Termination: Termination events and consequences
14. Dispute Resolution: Mechanism for resolving disputes, including jurisdiction and governing law
15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Surface Rights: Required when surface rights are separate from mineral rights and need specific provisions
2. Indigenous Peoples and Local Communities: Required when the mining area affects tribal lands or local communities
3. Environmental Bond: Required when specific environmental security or bond needs to be provided
4. Foreign Investment Provisions: Required when the option holder is a foreign entity
5. Royalty Provisions: Required when there are specific royalty arrangements during the option period
6. Force Majeure: Optional but recommended for long-term options in areas with political or natural risk factors
7. Anti-corruption and FCPA Compliance: Required for international transactions or when parties are subject to foreign anti-corruption laws
1. Property Description: Detailed description of the mining property, including coordinates and maps
2. Existing Permits and Licenses: List and copies of all existing mining permits and licenses
3. Option Fee Payment Schedule: Detailed payment terms and schedule for the option fee
4. Minimum Work Program: Required exploration work and expenditure commitments during the option period
5. Form of Mining Lease: Draft form of the mining lease to be entered into upon exercise of the option
6. Technical Reports: Existing geological reports, surveys, and technical data
7. Environmental Reports: Existing environmental studies and impact assessments
8. Encumbrances: List of any existing encumbrances, royalties, or other obligations affecting the property
Authors
Mining
Natural Resources
Metals & Mining
Environmental Services
Land Development
Energy & Resources
Construction & Engineering
Industrial & Manufacturing
Legal
Operations
Environmental Compliance
Mining
Geology
Land Acquisition
Project Management
Community Relations
Finance
Corporate Development
Regulatory Affairs
Mining Executive
Legal Counsel
Environmental Compliance Manager
Mining Engineer
Geologist
Land Acquisition Manager
Project Director
Operations Manager
Community Relations Manager
Chief Financial Officer
Exploration Manager
Mining Rights Specialist
Regulatory Compliance Officer
Due Diligence Manager
Corporate Development Director
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