Common use of MINERAL LEASES AND EXPLORATION LICENCE Clause in Contracts

MINERAL LEASES AND EXPLORATION LICENCE. (1) Subject to sub-clause (2) of this clause, the Company may apply for Mineral Leases in accordance with the provisions of the Mining Act for the purposes of the XxXxxxxx River Project over areas of land within the external boundaries of the northern portion of RO581, any area adjoining the northern portion of RO581 but outside of RO581 and in any event subject to and in accordance with section 25 of the Mining Act, and one Mineral Lease over an area of land within the Bing Bong Pastoral Lease No. 686 and adjacent Territory waters. (2) For a period of 2 years from the commencement of this Agreement the provisions of sections 57, 58, 59 and 163 of the Mining Act shall not apply to the XxXxxxxx River Project and the Minister shall as soon as practicable following the applications made by the Company grant the Mineral Leases for a term of 25 years in respect of the areas applied for notwithstanding there being no recommendation of the Warden. (3) The Minister shall renew the Mineral Leases in accordance with section 68 of the Mining Act for a further term of 25 years. (4) For the purposes of this Agreement and section 168 of the Mining Act, the Mineral Leases within the external boundaries of the northern portion of RO581 shall be deemed to be granted in substitution for those Existing Tenements set out in Annexure A, those Existing Tenements being automatically cancelled by the granting of the Mineral Leases. (5) The Company's, and any related company's, obligations and liabilities under the Existing Tenements set out in Annexure A which would survive or commence to apply upon cancellation, expiration or substitution of those Existing Tenements shall become part of the obligations and liabilities of the Company under the Mineral Leases provided that where there is any inconsistency between the Company's obligations and liabilities under the Existing Tenements and those under the Mineral Leases, the latter shall prevail. (6) Following receipt by the Minister of applications by the Company for Mineral Leases under this clause, the following shall apply: (a) The Company shall as soon as possible thereafter deliver to the Minister a letter stating that it does not propose to apply for any further mineral leases under this clause. (b) Upon receipt of that letter the Minister shall cancel the northern portion of RO581 with effect immediately upon signature of the notice of cancellation and notwithstanding section 178 of the Mining Act. (c) Immediately upon that cancellation, the Company shall make application for and the Minister shall grant to the Company an exploration licence under the Mining Act for a term of 6 years over the balance of the former northern portion of RO581 as is not the subject of any mineral lease application by the Company. For the purpose of that grant, sections 17, 19, 20, 22(1) and 163 of the Mining Act shall not apply.

MINERAL LEASES AND EXPLORATION LICENCE. (1) Subject to sub-clause subclause (2) of this clause, the Company may apply for Mineral Leases in accordance with the provisions of the Mining Act for the purposes of the XxXxxxxx River Project over areas of land within the external boundaries of the northern portion of RO581, any area adjoining the northern portion of RO581 but outside of RO581 and in any event subject to and in accordance with section 25 of the Mining Act, and one Mineral Lease over an area of land within the Bing Bong Pastoral Lease No. 686 and adjacent Territory waters. (2) For a period of 2 years from the commencement of this Agreement the provisions of sections 57, 58, 59 and 163 of the Mining Act shall not apply to the XxXxxxxx River Project and the Minister shall as soon as practicable following the applications made by the Company grant the Mineral Leases for a term of 25 years in respect of the areas applied for notwithstanding there being no recommendation of the Warden. (3) The Minister shall renew the Mineral Leases in accordance with section 68 of the Mining Act for a further term of 25 years. (4) For the purposes of this Agreement and section 168 of the Mining Act, the Mineral Leases within the external boundaries of the northern portion of RO581 shall be deemed to be granted in substitution for those Existing Tenements set out in Annexure A, those Existing Tenements being automatically cancelled by the granting of the Mineral Leases. (5) The Company's, and any related company's, obligations and liabilities under the Existing Tenements set out in Annexure A which would survive or commence to apply upon cancellation, expiration or substitution of those Existing Tenements shall become part of the obligations and liabilities of the Company under the Mineral Leases provided that where there is any inconsistency between the Company's obligations and liabilities under the Existing Tenements and those under the Mineral Leases, the latter shall prevail. (6) Following receipt by the Minister of applications by the Company for Mineral Leases under this clause, the following shall apply: (a) The Company shall as soon as possible thereafter deliver to the Minister a letter stating that it does not propose to apply for any further mineral leases under this clause. (b) Upon receipt of that letter the Minister shall cancel the northern portion of RO581 with effect immediately upon signature of the notice of cancellation and notwithstanding section 178 of the Mining Act. (c) Immediately upon that cancellation, the Company shall make application for and the Minister shall grant to the Company an exploration licence under the Mining Act for a term of 6 years over the balance of the former northern portion of RO581 as is not the subject of any mineral lease application by the Company. For the purpose of that grant, sections 17, 19, 20, 22(1) and 163 of the Mining Act shall not apply.