Exploration Expenses Clause Samples
The Exploration Expenses clause defines how costs incurred during the exploration phase of a project, such as searching for minerals, oil, or other resources, are to be handled between the parties involved. Typically, this clause outlines which expenses qualify as exploration costs, how they are to be documented, and the method for reimbursement or cost-sharing among partners. Its core practical function is to ensure transparency and fairness in allocating the financial burden of exploration activities, thereby reducing disputes and clarifying each party’s financial responsibilities.
POPULAR SAMPLE Copied 2 times
Exploration Expenses. Exploration Expenses" shall mean and include expenditures made by ANGLOGOLD in its sole discretion, after the Effective Date, to ascertain the existence, location, extent or quantity of any deposit of Minerals on the Properties including, without limitation, drilling and other exploration activities directly related to drilling, mapping, surveying, sampling, assaying, geophysical work, metallurgical testing, feasibility studies, geochemical analyses, road building, and trenching, as well as all land acquisition costs and land holding costs made by or reimbursed to RIMFIRE by ANGLOGOLD for the staking and location of mining claims, lease rental payments and advance royalty payments and all Governmental Rentals.
Exploration Expenses. Exploration Expenses incurred in a given year after the Commencement of Commercial Production within the Area of Interest shall be deducted up to an annual maximum of ten million U.S. Dollar in the year they are incurred. Excess amounts shall be capitalized without interest and deducted over the immediately following three (3) year period.
Exploration Expenses. Globetech shall fund exploration expenditures on the Amapa Claims in the following amounts:
(i) at least $250,000 by December 31, 2004; and
(ii) an additional $1,500,000 by December 31, 2005.
Exploration Expenses. Subject to Sections 2.2(b), 2.2(c), and 2.5, in order to retain and exercise its Earn-In Right, Nevada Canyon shall (i) incur a minimum of One Million United States Dollars (US$1,000,000) in Exploration Expenses during the first Annual Period, and (ii) incur a minimum of Two Million United States Dollars (US$2,000,000) in Exploration Expenses during each of the second and third Annual Periods, so that by the end of the third Annual Period (the “Earn-in Due Date”), Nevada Canyon has incurred an aggregate of Five Million United States Dollars (US$5,000,000.00) in Exploration Expenses; provided, however, that Nevada Canyon may incur more Exploration Expenses for any Annual Period than the minimum amount required, and may carry forward the excess amount to reduce the minimum amount required for any subsequent Annual Period. The minimum amount of Exploration Expenses required to be incurred by Nevada Canyon for any Annual Period, after considering the carry-forward of excess amounts incurred in previous Annual Periods, is referred to as the “Minimum Expense Amount.” The period from the Effective Date until the Earn-in Due Date or such earlier date that Nevada Canyon has incurred an aggregate of Five Million United States Dollars (US$5,000,000.00) in Exploration Expenses and payments under Sections 2.2(b) and (c) is referred to as the “Earn-In Period.”
Exploration Expenses. For the purposes of this Agreement and in accordance with the provisions of Article 4 of Supreme Decree No. 054-2008-EM, the concept of Exploration Expenses include but are not limited to the following: payments of the validity fee and/or legal penalties; expenses related to geologic mapping, surveying, sampling and/or geochemical analysis, geophysical surveys (MAG, IP etc.), geological mapping, diamond drilling and/or reverse air, laboratories, wages of local and/or foreign workers, payments to domestic and/or foreign consultants; expenses arising from the agreements reached with the communities for the use of the land surfaces, excavations, trails and/or necessary access, camps, trenches, geophysical surveying and/or any other expenses related directly or indirectly to the exploration activity that is needed for the development of the Mining Right.
Exploration Expenses. For the purposes of this Agreement, the term "Exploration Expenses" shall mean all cash, expenses and obligations spent or incurred by CCSA or any Person on its behalf, in any activity, including the early stage of exploration, evaluation and development of mining exploration activities, on or for the Bajo Pobre Mining Property, to obtain new exploration or incorporation licenses or mining rights concessions for and on behalf of FKM or possible joint venture partners resulting from the activities carried out on the Bajo Pobre Mining Property. Such Exploration Expenses shall include but shall not be limited to land payments, duties, taxes and charges required to maintain the Bajo Pobre Mining Property and its respective mining rights, licenses and activities in proper form and enforceable; all the expenses for geophysical, geochemical and geological exploration works; all the expenses for surveying, drilling, assaying, metallurgical testing and any other expense that directly benefits the Bajo Pobre Mining Property and the exploration work carried out thereon; and a charge for the Operator, equal to 7% of the Exploration Expenses incurred by them or on their behalf, as compensation for administrative tasks and corporate, technical and administrative support which otherwise would not be charged. Proof of all such expenses must be sent by CCSA to FKM in writing within ninety (90) days of the end of each Year. For greater clarity, it is understood that the Exploration Expenses shall include, but shall not be limited to Value Added Tax, Gross Income Tax, Tax on Bank Account Debits and Credits, Tax on Bank Transfers and any other tax, duty or government levy, whether National, Provincial or Municipal, now established or to be established in the future, on the items mentioned above.
Exploration Expenses