Exploration Agreement Sample Clauses

Exploration Agreement. This document and the exhibits and attachments hereto.

Exploration Agreement. At or before Closing, Seller shall have executed and delivered (or be ready, willing and able to execute and deliver) the Exploration Agreement substantially in the form attached hereto as Exhibit D (the "Exploration Agreement").

Exploration Agreement. During the exploration phase, relationship building without raising expectations too much is a delicate balancing act as it is rare that a deposit worth exploiting will be found. Yet it is also clear that companies have to start building trust with local stakeholders from early on. An Exploration Agreement is a binding contract for companies that wish to ensure a good relationship with the local communities and the stake- holders of the project. The agreement is only used after community-company relationships are well established. This contract should be tied to the land and not the company to ensure that the agreement survives successive owners. There are a few simple steps to consider when drafting an Exploration Agreement: 1. A company is encouraged to establish a mechanism early on for providing and receiving information as effective flow of information is an important factor in building trust with local communities (see Tool 4.1: Community Engagement Plan). The company can reach out to specific groups of interest or hold public meetings, develop a Facebook page or a website, establish a phone line, an email address or place a physical box in a strategic location in the community to receive feedback. In all cases, the options need to be explained during a local meeting, shared in local newspapers or through local media. Appropriate resources need to be attributed in order to be able to collect the information efficiently, to respond promptly and to record it. 2. Developing relationships with the community through consultation prior to and during exploration activities, is crucial for the company. Ideally this would be done before submitting the request for an exploration permit and certainly before beginning the actual exploration. For example, during the development of the Aitik project in Northern Sweden, local authorities and the general public were involved from the start through regular stakeholder meetings where potential impacts, project alternatives, mitigation measures and land use issues were discussed. If a project has indigenous communities as stakeholders, it would be appropriate to follow principles of FPIC throughout the mining life cycle. 3. All stakeholders will benefit from receiving accurate information about the activities conducted in each stage of the exploration project. Companies may take the opportunity to share knowledge about the industry through regular public meetings. During these ‘open days’ industry is encouraged to shar...

Exploration Agreement. 3.1 Option to Earn 50% Interest. WRR hereby grants to WRR the exclusive option to earn an undivided fifty percent (50%) interest in the Property by funding FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) in exploration activities and expenditures during a two-year period. (a) NGC agrees to spend a minimum of TWO HUNDRED-FIFTY THOUSAND DOLLARS ($250,000.00) in Exploration Expenditures on the Property (the “First Option”) and will earn an undivided twenty-five percent (25%) interest in the Property, within one (1) year following the Effective Date. The term “Exploration Expenditures” shall include monies expended on geological, geophysical, and geochemical surveys on the Property; sampling, trenching, drilling, and assaying. (b) Thereafter, NGC agrees to spend an additional $250,000 in exploration expenditures in year two (2) (the “Second Option”) will acquire a total undivided fifty percent (50%) interest in the Property. (c) Any excess of expenditures in one year shall be carried forward as a credit against the subsequent years’ expenditures. Any shortfall in expenditures can be made up in the following year with WRR’s consent. Absent such consent, a shortfall in expenditures shall be paid to WRR at the end of each contract year, provided the provisions of Section 20 have not been invoked or the Agreement has not been terminated in accordance with Section 8 below. (d) At such time as NGC has expended FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) in exploration expenditures in accordance with Sections 3.1(a) and 3.1(b) above, NGC will have earned an undivided 50% interest in the Property. The parties shall then proceed to form a Joint Venture in accordance with Section 5 below.

Exploration Agreement