Definition Of Earn-In Agreement

By 16 september 2021 No Comments

The fundamental basis of the agreement is the conditional granting of ownership participation in the project of the main mining company, provided that the farm-in party meets certain expenditure obligations over an agreed period (an effective possibility for the main mining company to transfer the obligation to keep the leased houses in good condition to the farm in part, while maintaining an interest in the project and exposure to exploration successes). As with any joint venture agreement, it is necessary to carefully evaluate, during the negotiation phase, all possible outcomes (the “what if?”), whether on the side of the “Farm-in/Earn-in” part, or the main mining company (e.g. .B. of the owner of the project/asset that the farm-in party wants). In addition, the Company and Rio Tinto have entered into a Strategic Exploration Alliance Agreement (“Alliance Agreement”) under which we will work together to identify and acquire exploration concessions in Nicaragua, with a focus on copper-gold porphyry, scarn and epithermal precious metals systems. If a major mining company has been abandoned by part of the farm and is unable to terminate the agreement under the contract, the mining company would run the risk that the rental houses would fall into disrepair and the opportunity to obtain bids from other potential joint venture partners would be denied. From the point of view of the company within the party, agreements that are too rigid can create problems and there must be appropriate flexibility. For example, any additional expenses in previous years of the agricultural period could be taken into account if the Earn-in spends too little money. There are various contractual safeguards against major undertakings that would outsource assets that can be integrated into joint venture and farm agreements. On the other side of the fence, the deal needs to be carefully crafted in order to provide sufficient flexibility to the farm-in party, which may be grappling with funding risks/funding uncertainties. SASKATOON, Saskatchewan, Sept. 11, 2018 (GLOBE NEWSWIRE) — GFG Resources Inc.

(TSXV: GFG) (OTCQB: GFGSF) (“GFG” or “the Company”) is pleased to announce that it has signed an options and earn-in agreement (the “Agreement”) with Newcrest Resources Inc., a 100% subsidiary of Newcrest Mining Limited (ASX: NCM) (“Newcrest”) to advance the GFG Rattlesnake Hills Gold Project (the “Project”) Wyoming, USA.