Documentation Required for Renewal of 21-year Mining Leases

Notice to Lessees of 21-year Mining Leases

This information is intended to inform lessees of the documentation required for renewing 21-year mining leases.

Leases due to expire may be renewed provided that the lessee can prove that the mining lease(s) is being used for mining purposes and meets(s) one of the following criteria:

1. exploration and/or development work has been or is currently being performed on the lease, during the term of the lease; or
2. the lease is part of a larger contiguous mining land holding which, during the term of the lease, has been or is currently being explored and/or developed; or
3. the lessee will demonstrate a commitment to perform future exploration and development work (e.g. work contracts, option agreements, etc.) and will provide a certified statement(s) of expenditure after three years; or
4. a mineral deposit has been located which has the potential of being worked under favourable economic conditions; or
5. actual production (mining) and/or ongoing development work is being carried out with the intention of leading to production.

The following is the documentation that clients must submit to the Minister, or the Minister's delegate, for consideration in the renewal process of a 21-year mining lease:

If the lessee considers this information to be confidential, please request confidential status stating the period of confidentiality.

1. If the renewing lessee selects criterion #1 - work on the lease, then the lessee must submit:
   • a signed statement about the work program carried out and the expenditure on the work on a yearly basis for the years that work was performed on that lease.
2. If the renewing lessee selects criterion #2 - work on contiguous mining land, then the lessee must submit:
   • a signed statement listing the claims or leases comprising the larger contiguous land holding (include a sketch or map outlining the lease and contiguous lands); the work program carried out on the contiguous land; and expenditures on the work program on a yearly basis; and
   • up-to-date proof of ownership such as copies of claim abstracts, parcel registers, or abstracts of title, for both the lease and contiguous land.

   NOTE: It is only necessary to submit proof of ownership for the lease, contiguous land(s) where the work was done and for the mining land(s) which links the lease to the area of work.

3. If the renewing lessee selects criterion #3 - future work commitment, then the lessee must submit:
   • a signed letter of commitment to perform future exploration and development work outlining future work programs and an estimate of expected expenditures on a yearly basis for a three year period (in current dollars); and
   • a copy of signed work contracts, option agreements, etc.; and
   • at the end of three years, a statement of expenditures verified by a professionally accredited accountant.
4. If the renewing lessee selects criterion #4 - potential mineral deposit, then the lessee must submit:
   • a feasibility study (not a prospectus report) illustrating that a mineral deposit has been located which has the potential of being worked under favourable economic conditions. This report is to include tonnage of product, grades, and projected production costs per unit; and
   • a statement of qualifications of the person/company who prepared the feasibility study, i.e., qualified professional, consultant, mineral economist, company.

   If the lessee is requesting renewal of several contiguous leases, separate feasibility studies may not be required depending on the situation. Where the mineral deposit straddles two or more leases, one study would be sufficient. However, if the mineral deposit is situated well within one lease then another criteria would have to be selected for renewal of the other contiguous leases.

5. If the renewing lessee selects criterion #5 - actual production, then the lessee must submit:
   • a signed statement detailing the actual production and/or ongoing development work that is intended to lead to production.

As part of criteria 1, 2 and 3, the amount of exploration and development work should be equivalent to the minimum amount of work required to bring an unpatented mining claim to lease (per S. 2 of the Assessment Work Regulation and S. 12 of the Fees Regulation of the Mining Act, R.S.O. 1990 - $4,400 per 16 hectares).

When to apply:

The application for renewal must be received in the 90 day period before expiry.

What to submit:

• Documentation of Exploration/Production work.
• A certified copy of the parcel register or abstract for each lease, obtained from a Land Registry office in Ontario.
• A copy of a current Corporation Profile Report (only if lease in name of a company) available through the Ministry of Government Services, Companies Branch. Renewal will not proceed unless the company has an "active status" on the report and the name of the company matches the name on the parcel register.
• Proof of full payment of Municipal or Provincial Land Taxes if the lease includes surface rights.
• Any outstanding rent.
• Payment of the first year's rent.
• A renewal fee of $75.00 per lease.

Apply to:

Application for renewal is made by letter to: Dispositions Office.

IMPORTANT: All 21-year lessees must provide renewal documentation before expiry of the lease. This office must receive written intent if lessees do not wish to renew their lease(s). If this office does not receive application to renew before the expiry, we will assume that the lessee does not wish to apply for renewal and without any further notice to the lessee, will commence the process of termination as per subsection 81(11) of the Mining Act, R.S.O. 1990.

It is an offence under the Mining Act to make a false statement.

If further information is required, please contact the Mining Lease Administrator.