Preproduction Expenditures definition
Preproduction Expenditures means the aggregate of costs (whether capital or otherwise) incurred after the date of the Agreement, relating to the exploration or development of the Property and the construction of facilities on or off such Property related to such Mining Operation, and prior to the Commencement of Commercial Production, including, without limiting the generality of the foregoing:
(i) all amounts expended in staking or otherwise acquiring any right, title and interest in and to the Property, but excluding option payments;
(ii) all costs of or related to the construction of the Mill or building, crushing, grinding, washing, concentrating and/or other treatment facility and/or any facilities ancillary thereto;
(iii) all costs of or related to exploration or mining of the ore body or ore bodies situate on the Property;
(iv) all costs of or related to the construction of storage and warehouse facilities, the construction or roads, the construction of employee facilities, including housing, whether same are located on or off the Property;
(v) all costs of or related to the transportation facilities for moving ore or concentrates and/or any products derived therefrom;
(vi) all costs of or related to financing arrangements for the Mining Operation, including standby charges and other fees;
(vii) all costs incurred for or in relation to men engaged in work on, in or in relation to the Property and without limiting the generality of the foregoing, such costs shall include amounts expended in paying wages, salaries, fringe benefits, transportation and housing expenses;
(viii) all amounts for taxes, fees, charges, payments or rental, including, without limitation, payments made in lieu of assessment work or otherwise paid or expended to acquire or to keep in good standing the Property; and
(ix) an amount for general overhead of the Purchaser equal to:
(A) 5% of all payments made to keep the Property in good standing and all payments made with respect to the acquisition of the Property, including deposits, instalments of purchase moneys, option payments, rental payments or any other such payments; and
(B) 5% of all amounts paid during the period to third party contractors and/or consulting, including, without limitation, amounts paid for drilling, geophysical services and helicopter, aircraft, vehicle and equipment rentals; and
(C) 2% of all amounts expended during the period for fixed assets, excluding the Property, but including, without limitation, plant, equipment and material...
Preproduction Expenditures means all monies spent or paid by the Royalty Payor on or in respect of the Property prior to the Conversion Date. Without limiting the generality of the foregoing statement Preproduction Expenditures shall include all money spent or paid by the Royalty Payor for exploring, developing and equipping the Property for production; completing feasibility studies; maintaining the Property in good standing; constructing all facilities necessary to commence commercial operations on the Property; constructing or acquiring infrastructure or facilities off the Property but required for commercial operations; and on making or paying for any other expenditures related to the achievement of commercial operations. The Royalty
Preproduction Expenditures means the aggregate of all costs (whether capital or otherwise) incurred either before or after the date upon which the right to receive the NP Royalty arose and related to the exploration or development of the Property and/or the bringing of the Property into commercial production, and/or the construction of facilities and/or services (whether located on or off the Property) related thereto, including, without limitation:
(i) all amounts expended in doing work but only until the Property has been brought into commercial production;
(ii) all costs of or related to the construction of any mine or mill buildings, crushing, grinding, washing, concentrating, waste storage and/or disposal and/or other treatment facilities and/or any facilities ancillary thereto;
(iii) all costs of or related to exposing and mining any orebody or orebodies situate in whole or in part on the Property, but only until the date upon which the Property is brought into commercial production;
(iv) all costs of or related to the construction of storage and/or warehouse facilities; the construction and/or relocation of roads; the acquisition and/or development of waste and/or tailings areas and/or systems;
(v) all costs (including the costs of acquiring and transporting thereof) of or related to transportation facilities for moving ore, concentrates and/or any products derived therefrom, electric power including power lines and equipment, water pipelines, pumps and w▇▇▇▇ or any other utilities;
(vi) all costs of or related to employee facilities, including housing;
(vii) all costs of or related to the supplying of management, marketing, supervisory, engineering, accounting or other technical and/or consulting services or personnel, whether to the operator or otherwise;
(viii) all costs of or related to taking to lease and/or maintaining of the Property in good standing and/or the taking of any steps considered advisable by the operator or owner of the Property to acquire, protect and/or improve any interest in the Property and/or in properties or property rights considered by the operator or owner of the Property to be necessary or advisable for the purpose of carrying on such business, but only until the date upon which the Property is brought into commercial production;
(ix) all costs of or related to feasibility, marketing, economic, reclamation, rehabilitation and/or technical evaluations, plans, studies or reports;
(x) all costs of consulting, legal, insurance, marketing and other s...
More Definitions of Preproduction Expenditures
Preproduction Expenditures means all monies spent or paid by the Royalty Payor on or in respect of the Mining Location prior to commercial production. Without limiting the generality of the foregoing statement, Preproduction Expenditures shall include all money spent or paid by the Royalty Payor for developing the Mining Location for production; undertaking exploration, completing feasibility studies; maintaining the Mining Location in good standing; and on making or paying for any other operating expenditures related to the achievement of commercial operations.
Preproduction Expenditures means, in respect of any Eligible Property, (i) all expenses incurred in respect of such Eligible Property prior to Commencement of Commercial Operations, including, without limitation, all expenses incurred exploring, developing and equipping such Eligible Property for production, completing feasibility studies, maintaining such Eligible Property in good standing, constructing all facilities necessary to commence Commercial Operations on such Eligible Property, constructing or acquiring infrastructure or facilities off of such Eligible Property but required for Commercial Operations, and to otherwise achieve Commercial Operations, and (ii) a reasonable charge for overhead which shall be computed quarterly and charged to the Royalty Account at the end of each calendar quarter. Prior to a production decision, the charge for overhead shall be an amount equal to 1.5% of all other expenditures;
Preproduction Expenditures means all monies spent or paid by the Royalty Payor on or in respect of the Property prior to the Beginning of Commercial Production. Without limiting the generality of the foregoing statement Preproduction Expenditures shall include all money spent or paid by the Royalty Payor for exploring, developing and equipping the Property for production; completing feasibility studies; maintaining the Property in good standing; constructing all facilities necessary to commence commercial operations on the property; constructing or acquiring infrastructure or facilities off the property but required for commercial operations; and on making or paying for any other expenditures related to the achievement of commercial operations. The Royalty Payor shall be entitled to include as a Preproduction Expenditure a reasonable charge for management and administration which shall be computed quarterly and charged to the Royalty Account at the end of each calendar quarter. Initially, the charge for management and administration shall be an amount equal to 15% of all other expenditures incurred after the Conversion Date and shall persist at this level until Preproduction Expenditures incurred after the Conversion Date amount to more than $2,000,000 per year at which time the Royalty Payor shall review this amount and propose a reasonable revision. Beginning of Commercial Production: Beginning of Commercial Production has the meaning assigned to it in the Agreement. The Royalty Payor shall notify the Royalty Holder of the date of the Beginning of Commercial Production.