Help needed, prospectors are coming

B

Bufford

Gold Member
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Mar 13, 2006
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Last night I got a call from a large mining company Kennecot Exploration. This company and others have been studying the land around our area for the past few years. They have been flying planes and helicopters scanning the area.

Last year there was a big panic by the companies to lay claims around the area on crown land. They are interested in a wide range of minerals from industrial metals such as paladium, gold, copper, and nickle. The ground looks promising, and they are still at it despite the economy.

Okay so now they have approached me to ask to use my land for prospecting. At this time I am not sure if they are going to just poke around, or if they want to drill some test holes.

I am wondering what I should charge them for using my land, and how much depending on the work they propose to do. If any of you know about this process please let me know.
 
I don't know, but charge 'em enough so you can afford to move if you have to. There's all kinds of crazy environmental stuff that goes along with mining :(
 
Perhaps your local Foresty Management Bureau (or whatever it may be called in Canada) could be of assistance?
 
In the U.S. we often have land under a condition called split estate, where surface and mineral rights are owned separately. This is in part at least a hold over from the old coal mining in England, so it may be the case in Canada also. If you own the surface, but not the minerals, the mineral owner or his leasee have the legal right to access the minerals. This may be subject to certain restrictions. By all means contact a shyster, er lawyer.
 
Well I am thinking in terms of 7 digits and the first number must be greater than one if I should sell off to the company.

I spoke to a reputable prospector in the area, and go slow is the best advice. I am going to go to the land registry office and find out for sure just what I have in terms of surface and mining rights to my land. I have 160 acres, and was told that this mining company has alot of money.

Depending on what they want to do, and how complex or vague the contract is, then I will have to get a lawyer. This is all uncharted territory right now. Other people have gone through the process and have come out winners from it. If they want to build a road and do some drilling, that would be good for me, as this would give me better access on my property instead of the lousy ATV trail.

Better yet, hopefully they do find something of value and they can buy me out. Pay me well, so that instead of going to the Ford dealership, I could step up just a bit and go over to the Boeing dealership instead.
 
You might want to begin by checking out the Mining Association of Canada. There website is: http://www.mining.ca/www/index2.php

You might also want to contact the executive director of the Northwest Mining Association. You can check out there website by googling Northwest Mining association. The executive director is:

Laura Skaer
Executive Director
lskaer@nwma.org

She might be able to help you understand what to expect.
 
teacher said:
+1 .........

And put a very, very, very steep price on them to use your land.

You need to come out a winner on this........... :thumbup:
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This is why you need a lawyer. Surface owner compensation may be stipulated in the lease or by statute. In the U.S. this is usually the case and compensation may be very minimal.

If you hold mineral rights and they weren't leased out for peanuts by Grandad, you may be in the driver's seat.
 
Bufford said:
Better yet, hopefully they do find something of value and they can buy me out. Pay me well, so that instead of going to the Ford dealership, I could step up just a bit and go over to the Boeing dealership instead.
Click to expand...
I hear we have great price on 737 Biz Jets right now!
 
Today I have an appointment at the Land Registry office to see where my land stands with mineral rights both surface and mining. Then the mining company will be meeting with me, so I am going slow and careful with this.

Boeing has a nice 737 -800 for the short haul flights where the big one can't land, its big enough to fit the pick-up and the canoe and stuff.

But for real comfort the customized 747 with the on board swimming pool. I like the option of having a staffed kitchen to bring out meals to the pool side for when I visit family or to just to get away. And just use the 737 for use closer to home and for the beer run.
 
The mining rep stopped in to fill me in on the details. My land is part of an area of interest. They have been studying and drilling around the area for a few years, so the process is well under way, and the deposits look promising.

They are agreeing to pay me a pretty good lease to just study my land, and would agree to pay a handsome fee to perform any alterations to the land. Heck they can do what they want, as its all bush and scrub anyways, anything they do could be concidered an improvement to this property. Interestingly, they agree to pick up any legal fees should I have a lawyer of my choice look it over. Several other neighbors have been aproached by the mining company, so we are all in the same boat.

If everything does pan out, they would be paying me very well for a percentage of the smelter output for the life of the mine.

I would live quite well and not have to worry about the financial wolf at the door. Most of my life I have been just surviving financially, burning wood and scraping up the pennies and turning them over twice before spending. It would be nice to have abit of slack for a change.

I might not get the big jet, but ah well, the Otter may do, even though its really just a cross between a chainsaw, snowmobile and canoe with wings. Nice to dream about it.
 
I forgot to mention something, maybe it was because of that bottle of Scotch last night. But the mining rep left me with a few things yesterday including a nice stainless steel travel mug.

He also gave me a Cassleman rose wood handled linerlock knife. Very nice with a three inch blade, nylon belt sheath and it has a pocket clip aswell. The knife is engraved with Kennecott Canada Exploration Inc.
 
Sounds great! Get a lawyer or two on your side just to cover things you might not think of. I hope it all pans out for you! Can I have a ride in your plane when you get it? ;)
 
Another agreement that you ought to contact an attorney.
The mineral rights to some land that was originally owned by my Great Grandfather, were sold years ago. I don't know if it was a lease or extended payment, or currently for use of some of the surface to access the mineral (mostly natural gas) but it is still producing some income each year
The exploration folks may be just fine folks but they are employees of the Co. and their job is to optimize the benefit/profit and minimize the costs of their employer.
 
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