Mining company trying to combine 2 prospecting licences under new proposed agreement
BY BEN BILUA
FAR East Mining Company is trying to consolidate two prospecting licences, PL-06/22 and PL-04/24, into a single project, according to document obtained by Island Sun.
These tenements are located in San Jorge Island, Isabel Province.
Under the new proposed deal, the previous rental fee of $50,000 per prospecting license will now be replaced with a single annual payment of $100,000 for the mining lease.
In addition, the company has agreed to pay a one-time sum of $40,000.00 as support and Association establishment fee upon signing of the agreement.
According to the proposed Surface Access Right Agreement [SARA] for a Mining Lease, landowners are set to benefit through quarterly surface rental and access fees.
The company promised to pay SBD100,000.00 every three months, with the first instalment due within 30 days of the agreement’s commencement.
Subsequent payments will follow every 90 days, deposited directly into a landowners’ trust account.
The SARA also outlines revenue-sharing measures in line with the country’s Mining Act. Three percent of the gross sales revenue from mining operations will be distributed between the government and landowners.
The specific breakdown will follow legislation or be determined through separate arrangements.
Furthermore, the company is required to make payments for ore shipments based on grade and tonnage.
According to the SARA, high-grade nickel ore (1.5 percent) will be priced at USD2.00 per wet metric ton, while low-grade nickel ore (greater than 1.5 percent) will be priced at USD0.50 per wet metric ton.
The proposed agreement clarifies that all relevant tax obligations tied to shipment payments will be borne by the landowners.
To further support local communities, the company will also pay a fee of SBD7,000.00 for each shipment.
This charge will cover the use of local anchorage facilities, ensuring safety standards and regulated vessel operations.
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