Free Mining Lease Agreement

This Lease Agreement ("Agreement") is entered into as of [Month Day, Year] by and between [Your Company Name], a mining corporation with its principal place of business at [Your Company Address], hereinafter referred to as the "Lessor," and [Client Name], an individual with its main address at [Client Address], hereinafter referred to as the "Lessee."

WHEREAS, the Lessor is the rightful owner of certain mining rights and properties described in this Agreement and desires to lease them to the Lessee; and

WHEREAS, the Lessee seeks to lease such mining properties for purposes of conducting mining operations, subject to the terms and conditions herein;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows:

I. Description of Mining Property

1. The Lessor hereby leases to the Lessee the mining property known as [Aurora Mine]. This property includes all mineral rights and ancillary facilities necessary for mining operations.

2. The leased property shall also include any easements, rights-of-way, or improvements necessary for the Lessee’s operations. Access to the property is granted under this lease for all lawful purposes connected to mining.

3. The Lessor warrants that it holds full and clear title to the mining property and has the legal authority to lease the property to the Lessee. The Lessor will indemnify the Lessee against any claims to ownership or title disputes.

4. The Lessee acknowledges that they have inspected the property and accepts it "as is." The Lessee assumes all responsibility for its use and compliance with environmental and operational regulations.

5. The Lessee shall not use the property for purposes unrelated to mining or operations explicitly agreed upon herein, ensuring all use remains consistent with legal and safety standards.

II. Term and Renewal

1. The initial term of this lease shall be for a period of ten (10) years, commencing on [Month Day, Year] and terminating on [Month Day, Year], unless otherwise terminated as provided in this Agreement.

2. Upon the expiration of the initial term, the Lessee shall have the option to renew the lease for an additional five (5) years. Renewal shall be subject to mutual agreement on revised terms and conditions, if applicable.

3. The Lessee must provide written notice to the Lessor of its intent to renew at least twenty (20) days prior to the lease’s expiration. Failure to provide such notice will result in automatic termination.

4. If renewed, the terms of the renewal period shall reflect market conditions at the time and may include an adjustment of lease payments, subject to negotiation between the parties.

5. Termination of this Agreement at the end of the term or any renewal shall require both parties to fulfill any pending obligations, including environmental remediation and property restoration.

III. Lease Payments and Royalties

1. The Lessee agrees to pay the Lessor a base lease payment of twenty thousand dollars ($20,000) per month, payable on or before the the fifteenth (15th) of each payment period. Payments shall be made to the Lessor’s designated bank account or address.

2. In addition to base payments, the Lessee shall pay a royalty fee of ten percent (10%) of the gross revenue derived from minerals extracted from the property. The royalty shall be calculated and paid quarterly.

3. The Lessee shall maintain accurate financial records of all mining operations, including gross revenue and expenses. Such records shall be subject to periodic audits by the Lessor upon ten (10) days’ notice.

4. Late payments shall incur a penalty of five percent (5%) of the outstanding amount for each fifteen (15) days past due. Persistent failure to make payments may result in lease termination.

5. Both parties agree that lease payments and royalties are subject to applicable taxes and fees, which shall be borne by the Lessee unless specified otherwise in this Agreement.

IV. Rights and Responsibilities of Lessee

1. The Lessee shall have the right to explore, mine, and extract minerals from the leased property. This includes constructing, operating, and maintaining necessary facilities.

2. All operations conducted by the Lessee shall comply with local, state, and federal laws, including safety and environmental regulations. Non-compliance will be grounds for termination.

3. The Lessee shall bear all costs related to mining operations, including but not limited to labor, equipment, and permits. The Lessor shall not be held liable for such expenses.

4. Upon completion or termination of mining activities, the Lessee is responsible for restoring the property to its original condition or as close to it as reasonably possible. Reclamation plans must be submitted and approved by the Lessor.

5. The Lessee agrees to maintain liability insurance of at least ten thousand dollars ($10,000) to cover any damages or accidents arising from its operations. Proof of insurance shall be provided to the Lessor upon request.

V. Rights and Responsibilities of Lessor

1. The Lessor retains ownership of the property and all mineral rights not explicitly leased to the Lessee. The Lessor has the right to inspect the property at reasonable times to ensure compliance with this Agreement.

2. The Lessor shall provide the Lessee with necessary access to the property, including granting easements and permissions as required by mining operations. Such access shall not be unreasonably withheld.

3. The Lessor agrees to address and resolve any third-party claims related to property ownership or title during the lease term. Any legal disputes arising from ownership will be the responsibility of the Lessor.

4. The Lessor shall maintain confidentiality regarding any proprietary information disclosed by the Lessee. This includes trade secrets, operational methods, and financial data.

5. The Lessor may not interfere with the Lessee’s lawful operations on the property but reserves the right to terminate this Agreement for breach of terms.

VI. Termination and Default

1. This Agreement may be terminated by mutual written consent of both parties at any time. Termination shall not absolve either party of pending obligations.

2. The Lessor may terminate the Agreement for the Lessee’s failure to make payments, comply with regulations, or fulfill other material obligations. Written notice of default and an opportunity to cure shall be provided.

3. The Lessee may terminate this Agreement if the property becomes unviable for mining operations due to natural or legal circumstances. Written notice of termination must be provided to the Lessor.

4. Upon termination, the Lessee shall vacate the property, remove all equipment, and complete reclamation activities. Any disputes regarding termination shall be resolved through arbitration.

5. Termination shall not affect accrued rights, including unpaid royalties, indemnities, or breach remedies.

VII. Miscellaneous Provisions

1. Governing Law: This Agreement shall be governed by the laws of [Jurisdiction], and any disputes shall be resolved in the courts of that jurisdiction unless otherwise stated.

2. Force Majeure: Neither party shall be held liable for delays or failures caused by events beyond their control, including natural disasters, strikes, or government actions.

3. Amendments: Any amendments to this Agreement must be made in writing and signed by both parties to be effective.

4. Notices: All notices under this Agreement shall be sent to the addresses specified above and deemed received within five (5) days of dispatch.

5. Entire Agreement: This Agreement constitutes the entire understanding between the parties and supersedes any prior agreements or representations.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

Lessor Signature:

[Your Name]

[Job Title]

[Your Company Name]

[Month Day, Year]

Lessee Signature:

[Client Name]

[Month Day, Year]

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