Mining exploration permit

A mining exploration permit is the permit an Ontario Director of Exploration issues under section 78.3 of the Mining Act for prescribed activity on a mining claim, mining lease or licence of occupation for mining purposes. A buyer of an exploration company meets it because section 78.4(2) makes a permit binding on a transferee, assignee or successor of the person it was issued to. This entry covers Ontario; check the rules where you are.

What the Act says

Subject to section 78.1, which applies these sections in accordance with the regulations, section 78.2 bars prescribed activity unless the person has submitted an exploration plan in accordance with any prescribed requirements, including any prescribed Aboriginal consultation, and section 78.3 bars other prescribed activity unless the person has applied for and been issued a permit. A permit is subject to the prescribed standard terms and conditions and any additional terms and conditions the Director determines are appropriate; if permitted by regulation, the Director may waive some or all of the standard terms and conditions where of the opinion that it is reasonable to do so. Under section 78.4(2), a permit is binding on and enforceable against any transferee, assignee or successor of the person to whom it was issued. Section 78.6 makes the transferee or assignee of a claim, lease or licence of occupation for mining purposes liable for any rehabilitation obligations imposed under that Part or under an exploration plan or permit, regardless of when or by whom they were created. An Environmental Registry of Ontario notice for one permit says it was issued after Indigenous communities and the public had the opportunity to comment.

What to check or ask

• Which claims have plans or permits, and which activities each covers under the regulation the Act names, Ontario Regulation 308/12.
• The terms and conditions attached to each permit, and whether the work done met them; where a prescribed activity is being carried out in contravention of the Act or regulations, section 78.5 lets an inspector or a Director order exploration activities to cease or, for a permit contravention, cancel the permit.
• What rehabilitation is outstanding, given section 78.6.
• Who holds the prospector’s licence behind the claims, and the general questions in what licences transfer when you buy a business.