Common use of Area of Mutual Interest Clause in Contracts

Area of Mutual Interest. 14.1 An area of mutual interest located within two miles of the existing exterior boundaries of the Properties is hereby established, (which area is hereinafter called the “AMI”). By signing this Agreement, Optionee and Optionors hereby covenant and agree each with the other that any property interest or mineral rights or Properties that may be acquired by either of them after the Effective Date located wholly or partially within the AMI excluding the Mill, will become a part of the Properties and be subject to this Agreement if: (a) the principal mineralization is gold, silver, lead or zinc, and (b) the Optionors, acting in good faith, believe that the property or interest has a reasonable potential for economic mineralization. If either Optionee or Optionors acquires an interest as aforesaid, it will notify the other in writing of the extent of the interest acquired. The notified party will have thirty (30) days following receipt by it of the foregoing notification to elect in writing to have the property interest or mineral rights or Properties included within the terms of this Agreement. If the notified party does not so elect in writing within the thirty (30) day period, the acquiring party will be entitled to acquire the property interest or mineral rights or Properties for its own account and such interest will not be part of the Properties and will not be subject to the terms of this Agreement. 14.2 An area of potential interest located within 10 miles, but more than two miles, of the existing exterior boundaries of the Properties is hereby established, (which area is hereinafter called the “API”). By signing this Agreement, Optionors hereby covenant and agree that any property interest excluding the Mill or mineral rights that Optionors’ may locate or acquire after the Effective Date located wholly or partially within the API will be offered to Optionee if (i) the principal mineralization is gold, silver lead or zinc, and (ii) in the good faith estimate of Optionors’, they believe that the property or interest has a reasonable potential for economic mineralization. If Optionors locate or acquire an interest as aforesaid, it will notify the Optionee in writing regarding the existence and nature of property or interest. Optionee will have thirty (30) days following receipt by it of the foregoing notification to elect in writing to have the property interest or mineral rights included within the terms of this Agreement. If Optionee does not so elect in writing within the thirty (30) day period, Optionor will be entitled to acquire or keep the property interest or mineral rights for its own account and such interest will not be part of the Properties and will not be subject to the terms of this Agreement.

Area of Mutual Interest. 14.1 8.1 An area of mutual interest located within two miles (2) kilometres of the existing exterior boundaries of each of the Properties is hereby established, individual claims comprising the Property was established under the Canamara Agreement (which area is hereinafter called the “AMI”). By signing executing this Agreement, Optionee Canamara and Optionors Allied hereby covenant and agree each with the other that any property interest interests or mineral rights or Properties that which may be acquired by either of them after located with the Effective Date located wholly AMI subsequent to the effective date of this Agreement and during the term of this Agreement shall become part of the Property for the purposes of this Agreement, save as otherwise provided for herein. 8.2 If Allied acquires a property interest or partially mineral rights within the AMI excluding the Millas contemplated in paragraph 8.1 hereof, it shall notify Canamara of such acquisition, and such property interest or mineral rights will become a part of the Properties and be subject to Property for the purposes of this Agreement if: (a) Agreement. 8.3 If Canamara acquires a property interest or mineral rights within the principal mineralization is gold, silver, lead or zinc, and (b) the Optionors, acting AMI as contemplated in good faith, believe that the property or interest has a reasonable potential for economic mineralization. If either Optionee or Optionors acquires an interest as aforesaidparagraph 8.1 hereof, it will shall notify the other Allied in writing of the extent property interest or mineral rights acquired and the cost of the interest acquiredacquisition thereof. The notified party will Allied shall then have thirty (30) days following receipt by it of the foregoing notification to elect in writing to have the property interest or mineral rights or Properties included within the terms of this Agreement. If the notified party does not so elect in writing within the thirty (30) day period, the acquiring party will be entitled to acquire the property interest or mineral rights or Properties for its own account and such interest will not be part of the Properties and will not be subject to the terms of this Agreement. 14.2 An area of potential interest located within 10 miles, but more than two miles, of the existing exterior boundaries of the Properties is hereby established, (which area is hereinafter called the “API”). By signing this Agreement, Optionors hereby covenant and agree that any property interest excluding the Mill or mineral rights that Optionors’ may locate or acquire after the Effective Date located wholly or partially within the API will be offered to Optionee if (i) the principal mineralization is gold, silver lead or zinc, and (ii) in the good faith estimate of Optionors’, they believe that the property or interest has a reasonable potential for economic mineralization. If Optionors locate or acquire an interest as aforesaid, it will notify the Optionee in writing regarding the existence and nature of property or interest. Optionee will have thirty (30) days following receipt by it of the foregoing notification to elect in writing to have the property interest or mineral rights included within as part of the terms Property for the purposes of this Agreement. If Optionee Allied does not so elect in writing within the this thirty (30) day period, Optionor will Canamara shall be entitled to acquire or keep retain the property interest or mineral rights for its own account and such property interest or mineral rights will not be form part of the Properties Property and will not be subject to the terms of this Agreement. 8.4 If Allied does elect in writing to have the property interest or mineral rights included as part of the Property for the purposes of this Agreement as contemplated in paragraph 8.3 hereof, it will reimburse Canamara one hundred percent (100%) of Canamara’s cost of acquisition of the property interest or mineral rights acquired by a cash payment to be made contemporaneously with the giving by Allied of the notice to Canamara that said property interest or mineral rights are to be included as part of the Property for the purposes of this Agreement.