AuKing Mining Limited Prospectus

AuKing Mining Limited Solicitor’s Report on Tenements HopgoodGanim Lawyers Page 16 of 46 whole or a part of the exploration licence by a further period or periods of one (1) or two (2) years. Under the relevant version of the Mining Act, an exploration licence which was granted or applied for on or after 10 February 2006 has the same term, but the extension period is for five (5) years. In either case, the relevant prescribed circumstances for an extension include where the Minister is satisfied that planned exploration could not be carried out due to delay in obtaining necessary approvals or due to the land being unworkable for at least a considerable part of one year of the term, or where the Minister is satisfied that work carried out justifies further exploration (regulation 23AB of the Mining Regulations). Conditions of exploration licences 4.15 Exploration licences are granted subject to various standard conditions prescribed by the Mining Act including payment of annual rent, minimum expenditure requirements, reporting requirements and standard environmental conditions, as well as any conditions that may be imposed by the Minister in respect of a particular mining tenement (such as restrictions on accessing certain Crown lands or waters or Government sites). 4.16 The Mining Act also deems certain conditions to be mandatory for an exploration licence. These deemed conditions include (amongst other things) requirements for the holder to report mineral discoveries of ‘economic interest’ and not to use ‘ground disturbing equipment’ until a work programme is lodged and approved by the Minister (sections 62 and 63 of the Mining Act). Amalgamations 4.17 Pursuant to section 67A of the Mining Act a secondary tenement in relation to an exploration licence is a tenement, other than a retention licence, situated wholly within the boundaries of the land the subject of the exploration licence. 4.18 A person can apply for a secondary tenement, or part thereof, to be amalgamated into the relevant exploration licence. Where the secondary tenement and exploration licence are held by the same person, the secondary tenement can be amalgamated whilst live. Otherwise, the holder of an exploration licence can apply to amalgamate secondary tenements which have expired or have been forfeited or surrendered. 4.19 Amalgamation applications are processed through the future act provisions of the NT Act and the relevant procedural rights apply to registered native title claims and determinations. 4.20 The Minister may grant or refuse the application (section 67A(4) of the Mining Act). Transfer of exploration licences 4.21 No legal or equitable interest in or affecting an exploration licence can be transferred or otherwise dealt with during the first year of its term without the prior written consent of the Minister (section 64 of the Mining Act). Compliance with an approved work programme during this initial period is likely to be a factor influencing the grant of consent. If consent is provided, the transfer of the legal interest in an exploration licence must be registered under the Mining Act to be legally effectual (section 103C(8) of the Mining Act). Application for a mining lease 4.22 The holder of an exploration licence which is in force has the right to apply for and, subject to the grant requirements of the Mining Act, have granted, one or more mining leases over any part or parts of the land the subject of the licence (section 67(1) of the Mining Act). Where an application for a mining lease is lodged before the expiry date of the exploration licence but the application is not determined by that date, the Mining Act extends the term of the exploration licence until the application for the lease is determined (section 67(2) of the Mining Act). AuKing Mining Limited | PROSPECTUS 171