Prospector’s licence

A prospector’s licence is the Ontario licence a person must hold to prospect, or to register a mining claim, on land that is not already registered as part of a mining claim and for which the mining rights are held by the Crown (Mining Act, section 18). A buyer of a mineral exploration business meets it because the licence is issued to a person and section 19(4) says it is not transferable. This entry covers Ontario; check the rules where you are.

How it works

Under section 19, a person who meets the Act’s age requirement may obtain a licence online through the mining lands administration system if the person has completed the prescribed Mining Act awareness program within 60 days before obtaining it. Ontario’s data catalogue describes that program as required for people applying for or renewing a prospector’s licence. Section 19(4) states plainly that a licence is not transferable. The licence is separate from the permits that govern exploration work once claims exist; see mining exploration permit.

What to check or ask

• Which individuals hold prospector’s licences in the business, and whether each licence is current.
• Whether the buyer’s own people hold licences, since a seller’s licence cannot be transferred to them.
• Who registered the existing claims, and under which licence.
• The general questions in licences and permits in an Ontario business sale.