Malawi NI 43-101 - December 2011 - Gold Canyon Resources Inc.
Malawi NI 43-101 - December 2011 - Gold Canyon Resources Inc.
Malawi NI 43-101 - December 2011 - Gold Canyon Resources Inc.
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16(d) Ownership, surface rights, legal access, obligations, expiration date.The Chambe Basin lies within the Mulanje Mountain Forest Reserve and the mineraland surface rights are owned by the Government of the Republic of <strong>Malawi</strong>. Licence EPL0325/11 permits exclusive rights to carry on prospecting operations for rare earth elementsand bauxite. Legal access is by public roads and paths administered by the LikhubulaForestry Office of the Department of Forestry .Obligations assumed by licence-holder Spring Stone Ltd include the carrying out ofthe exploration program for rare earths and bauxite as proposed in the licence application(Anonymous (<strong>2011</strong>), Anonymous (<strong>2011</strong>a), Kojima (<strong>2011</strong>), Kojima (<strong>2011</strong>a). The originallyproposed expenditure of US $2.5 million was later reduced to US$1.0 million. Theexploration program was designed and will be carried out by Mitsui Mineral DevelopmentEngineering Co (“MINDECO”) under contract to Spring Stone Exploration <strong>Inc</strong>. Phase I ofthis program is to be carried out in fiscal year <strong>2011</strong> and consists of systematic shallowdrilling and pitting in Chambe Basin, with analysis and testing of soils for recovery of rareearths. Environmental observations will also be made.Conditions specified in the licence include requirements to commence operationswithin 3 months of granting of the licence, to supply quarterly progress reports and annualreports, to annually report the proposed program and budget for the next year’s work, toemploy and train <strong>Malawi</strong>an citizens, to use goods and services from <strong>Malawi</strong> wheneverpossible, to conserve the environment, and to reclaim and restore areas damaged byexploration activities. Any shortfall from the proposed expenditures is considered a debt tothe Republic of <strong>Malawi</strong>.The Licence was granted on the 18 th day of March of <strong>2011</strong> for a period of 3 years, withan option to renew the Licence in accordance with Section 50 of the <strong>Malawi</strong> Mines andMinerals Act 1981.(e)Royalties, back-in rights, payments, agreements, encumbrancesThe joint venture between JOGMEC and <strong>Gold</strong> <strong>Canyon</strong> concerning a program forexploration of minerals in <strong>Malawi</strong>, defined as the “<strong>Malawi</strong> Project”, is detailed in a ProjectJoint Venture Agreement (”PVA”) made on September 13 of <strong>2011</strong> between JOGMEC, <strong>Gold</strong><strong>Canyon</strong>, Spring Stone Limited and Spring Stone Exploration <strong>Inc</strong> and effective on November14 of <strong>2011</strong>, the date of reassignment of Exclusive Prospecting Licence 0325/11 from
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