Guide to mining projects and mining finance in Canada
Investing in or acquiring a Canadian mining project
There are various methods by which investment in a mineral
project can be made or by which a mining project may be
acquired. For example, an investor may acquire an interest in
some or all of a more advanced exploration or mining project
through the acquisition of individual mineral tenure or rights,
the purchase of assets, shares or partnership interests, or
through a joint venture or earn in arrangement.
Regardless of the method of acquisition, due diligence
is critical to understanding the nature and value of, and
the risks associated with, the investment or project to be
acquired. Comprehensive and accurate due diligence provides
investors (and their lenders) with the information necessary
to understand the opportunities and risks associated with
the project. For mining projects in particular, due diligence
is critical to understand risks associated with mineral tenure
and environmental and remediation issues and requirements.
A comprehensive due diligence process can provide
significant additional input and value.
With a diverse team of real property, mining and transactional
lawyers spreading across the country, Norton Rose Fulbright
has a unique strength in identifying and managing risks
associated with mining projects in Canada. For more
information on how we can assist you in the diligence process
of any and all stages of your project, please contact us
directly.
A. Acquiring mineral tenure
1. British Columbia
There are various forms of mineral tenure in British
Columbia, consisting principally of Provincially administered
mining claims, mining leases, and freehold lands.
• Mineral Claims - The rights and obligations of individuals
and/or corporations (Free Miners) who explore land
for minerals and subsequently acquire mineral tenures
is predominantly governed by the Mineral Tenure Act
(British Columbia) and its regulations. The governmental
body responsible for over-seeing all of the administrative
processes under this framework is the Ministry of Energy,
Mines and Natural Gas (MEMN). A Free Miner must
apply to the MEMN for a Free Miner Certificate prior
to exploration or development activities. Upon receipt
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of a Free Miner Certificate, Free Miners may conduct a
surface examination of the land and measurements of
the subsurface. If further exploration into the subsurface
of the land is required by way of electronic machinery, a
permit must be obtained by the Free Miner pursuant to
the Mines Act (British Columbia). Free Miners must also
provide proper notice, as mandated by the Mineral Tenure
Act, prior to entering privately owned land for any miningrelated activity. A Free Miner may register a mineral claim,
at which time the Free Miner acquires exclusive rights
over the minerals and mineral placers staked out by the
claim. The Free Miner may use and occupy the surface of
the land; however, the Free Miner does not acquire any
exclusive right over the surface of the land itself. In order
to maintain and keep the claim in good standing, a Free
Miner must pay an annual fee or submit reports to the
MEMN concerning any exploration and development work
that has been completed. If the Free Miner wishes to move
forward with the claim and advance towards production,
steps must be taken to replace the claim with a mining
lease.
• Mining Leases - The Mineral Tenure Act provides that
upon entering into a mining lease, the Crown conveys to
the Free Miner, the lessee, an exclusive right to use, enter
and occupy the surface of the land for the exploration
and development or production of minerals. The lease
may be granted for a period of up to 30 years with the
possibility of renewing for those leases issued before
December 1, 1995. Where projects of significant scope are
undertaken, or where a project is specifically designated, a
certificate must be obtained pursuant to the Environmental
Assessment Act (British Columbia). A mining lease may be
transferred once the prerequisites specified in the Mineral
Tenure Act and its regulations have been met, and consent
of the MEMN is not required.
• Freehold Lands/Patented Mining Claims - An owner of
freehold lands holds a fee simple real property interest.
Up until 1957, the holder of a mining claim interested
in removing minerals from the ground could, instead
of obtaining a mining lease, apply to the Province of
British Columbia for a “Grant of Title” to extract minerals.
Individuals who currently hold a fee simple interest over
minerals on their property may transfer this right, while
retaining a fee simple interest in the surface land. Freehold
mineral owners are subject to annual mining taxes
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Guide to Mining Projects and Mining Finance in Canada
pursuant to the Mineral Land Tax Act (British Columbia).
• Online Resources - In British Columbia, searches of
mineral tenures proceed through the government-licensed
“Mineral Titles Online.” The online system allows
users to conduct tenure searches, apply for a Free Miner
Certificate, acquire and maintain mineral and placer titles,
and transfer mineral titles. For more information on this
service, visit www.mtonline.gov.bc.ca/mtov/home.do.
2. Alberta
There are various forms of mineral tenure in Alberta,
including prospecting licenses, mining leases and freehold
lands. Alberta is one of three Canadian jurisdictions which
feature a “Crown discretion” system for the granting of
mining leases. To stake a mineral claim, one must obtain a
permit. The Crown discretion system permits the Province to
refuse an application for a license, or defer the acceptance of
an application where it believes the application is not in the
best interests of the Province.
• Mineral Permits - Prospecting on public lands held by
the Crown that are open for exploration is governed by
the Mining & Mineral Act (Alberta) and its regulations
and is administered by the Alberta Coal and Mineral
Development Unit of the Department of Energy (DOE). To
obtain the mineral exploration rights in a specified area
where the Crown owns the mineral rights, a prospector
must obtain a Metallic and Industrial Minerals Permit.
This permit does not grant the holder any real property
interest in the land, but allows the holder to conduct
limited exploration work with respect to such claims.
Thereafter, if the permit holder wishes to carry out more
extensive exploration work and/or move to production,
they have the right to obtain a mining lease. Permits are
initially issued for a period of 14 years, which are further
divided into seven assessment periods of two years.
• Mineral Leases - Metallic and industrial mining leases
entered into by the holder of a permit with the Crown
create a leasehold real property interest. A permit holder
may apply to the DOE for a mining lease if prescribed
terms and conditions have been met. Mining leases grant
an exclusive right to the lessee to enter upon the land
and search for and extract minerals, subject to the lessee
obtaining other required permits and compliance with
applicable regulations. Mining leases are for 15 year terms
subject to renewal on conditions. A mining lease may be
transferred by the lessee upon application to, and receipt
of approval from, the DOE.
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• Freehold Lands / Mining Patents - An owner of
freehold lands holds a fee simple real property interest.
Traditionally, the holder of a mineral permit interested
in removing minerals from the ground could, instead of
obtaining a mining lease, apply to the DOE to acquire
the freehold interest in the subject lands by way of the
issuance of a mining patent. Mining patents may include
surface and mining rights or solely mining rights. These
patents vest in the patentee all of the Crown’s title to the
subject lands and to all mines and minerals relating to
such lands, subject to any reservations specified. Freehold
lands are subject to annual Provincial mining taxes and,
where surface rights are held, Provincial land taxes. As the
holder of a mining patent enjoys the freehold interest in
the lands that are the subject of such patent, no consents
are required for the landowner to transfer or mortgage
such lands.
• Online Resources - Alberta’s Electronic Transfer System
(ETS) permits secure access to DOE public records and
provides for Crown surface land and mineral searches and
ownership transfers. For more information, visit
www.energy.alberta.ca/OurBusiness/minerals.asp.
3. Saskatchewan
There are various forms of mineral tenure in Saskatchewan,
but consist principally of mineral claims and mining leases.
• Mineral Claims - Mineral claims and mining leases
available for public lands held by the Crown that are
open for exploration are governed by the Energy and
Mines Act (Saskatchewan) and administered by the
Saskatchewan Ministry of Energy and Resources (MER). A
claim holder has exclusive rights to explore and prospect
for minerals in the claim area. Thereafter, if the holder
wishes to carry out more extensive exploration work and/
or move to production, they have the right to obtain a
mining lease with respect to such claims under the claim
rights (provided the claims are kept in good standing).
Anyone may prospect or stake claims in Saskatchewan. No
license is required. A claim may be held for two years and
may be renewed from year to year subject to the holder
making the required expenditures toward exploration
operations on the lands subject to the claim. Claims are
generally acquired by map staking in surveyed areas or
by ground staking in unsurveyed areas. A mineral claim
granted pursuant to the Energy and Mines Act does not
grant a right to enter upon or use the surface of the lands;
permission is required from the surface owner, whether
Crown or private owners.
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• Mining Leases - A mining lease may be obtained for
areas covered by mining claims, subject to prescribed
requirements. A mining lease grants the exclusive right
to explore for, dig, work, mine, recover, procure and carry
away the minerals within the lease area subject to the
payment of royalties. Leases are issued for a term of less
than 10 years, and are renewable for further terms of 10
years, subject to compliance with regulatory requirements
and annual lease payments. Subject to due registration,
a mining lease can be transferred or mortgaged by the
lessee without the prior consent of the MER. Provincial
mining projects that are classified by regulation as
“developments” also require compliance with stringent
environmental assessments.
• Online Resources - Saskatchewan’s Ministry of the
Economy (ECON) maintains an electronic registry for the
issuance of mineral dispositions granted. The registry
permits online acquisition of mineral tenure, and reporting
of work assessment expenditures, claims and leases,
and any transfer or surrender. Information Services
Corporation (ISC) of Saskatchewan is the Provincial agency
responsible for the administration of the Provincial land
titles registry. Copies of mineral titles are obtained from
ISC and mineral disposition maps are available online. For
more information, visit www.er.gov.sk.ca/mines.
4. Manitoba
There are various forms of mineral tenure in Manitoba,
consisting principally of unpatented mineral claims, mining
leases and freehold lands (including patented
mineral claims).
• Mineral Claims - Provincial exploration and mining rights
to Crown lands are acquired by way of mineral exploration
licences or mineral claims, governed by the Mines and
Minerals Act (Manitoba) and administered by the Manitoba
Department of Innovation, Energy and Mines (DIEM).
Exploration and mining rights for surface exploration
activities must be made separately through arrangements
with owners of private surface rights. In Manitoba, claims
may be staked by licenced prospectors only. Holders of
recorded mineral claims have exclusive right to explore
for and develop any Crown minerals found on, in or
under the lands covered by the claim, and claim holders
may enter, use and occupy the surface of the land to the
extent necessary for these purposes. Once a valid claim
is recorded, it is valid for two years and can be renewed
annually for an indefinite period. Mineral claims may be
transferred to a new title holder that is properly registered
to do business in Manitoba. The claim holder is required to
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complete annual assessment work as prescribed under the
Mines and Minerals Act. Failure to complete the requisite
assessment work will result in the forfeiture of the claims
back to the Crown subject to certain relief provisions
included in the Mines and Minerals Act.
• Mining Leases Issued through DEIM - A mining lease
grants exclusive right to Crown minerals and mineral
access rights including extraction rights, the right to open
and work a shaft or mine within the limits of the mining
lease area, and to erect buildings or structures on the
subject land as required for the purpose of working the
mining lease and mining and producing minerals from it.
Mining leases are granted for a term of 21 years and are
renewable indefinitely where production requirements
are met. Transfers, assignments and mortgages of mining
leases are permitted with the consent of the DIEM.
• Patented Mining Claims - Tented mineral claims are
parcels of land granted under the Land Titles Act (Canada)
without a reservation in favour of the Crown in right of
Canada in respect of minerals found in, on or under the
land. Mining patents may include surface and mining
rights or solely mining rights and vest in the patentee all of
the Crown’s title to the subject lands and to all mines and
minerals relating to such lands, subject to any reservations
set out in the patent. As the holder of a mining patent
enjoys the freehold interest in the lands that are the subject
of such patent, no consent is required for the patentee to
transfer or mortgage such lands.
• Online Resources - iMaQs, Manitoba’s integrated
Mining and Quarrying system, allows users to submit
applications and maintain dispositions online. Users
may view iMaQs maps showing current dispositions and
can perform searches on mineral dispositions and open
assessment files. Geological survey reports and maps
are also available to download free of charge. For more
information, visit www.manitoba.ca/iem/mrd/geo/gis/
activity/index.html.
5. Ontario
There are various forms of mineral tenure in Ontario,
consisting principally of unpatented mineral claims, mining
leases and freehold lands (including patented mineral
claims).
• Unpatented Mining Claims - Unpatented mineral claims
and mining leases available in respect of public lands held
by the Crown that are open for exploration are governed by
the Mining Act (Ontario) and administered by the Ontario
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Guide to Mining Projects and Mining Finance in Canada
Ministry of Northern Development and Mines (MNDM).
Unpatented mineral claims do not grant the holder any
real property interest in the lands comprising such claims,
but after staking and registration, provide the holder with
the right to conduct certain limited exploration work with
respect to such claims. Thereafter, if the holder wishes to
carry out more extensive exploration work and/or move
to production, they have the right to obtain a mining lease
with respect to such claims. The holder is required to
complete and file annual assessment work as prescribed
under the Mining Act. Failure to complete the requisite
assessment work will result in the forfeiture of the
unpatented claims back to the Crown (subject to certain
relief provisions included in the Mining Act). No minerals
may be extracted from lands that are the subject of an
unpatented mining claim; the holder must have a mining
lease or a freehold interest to mine the land. Subject to
due registration and the payment of applicable fees, an
unpatented mining claim can be transferred, charged or
mortgaged by the holder without obtaining any consents.
• Mining Leases - A mining lease entered into by a mineral
claims holder with the Crown creates a leasehold real
property interest in favour of the lessee. Mining leases
grant an exclusive right to the lessee to enter upon, search
for, and extract minerals from the land, subject to the
lessee obtaining other required permits and compliance
with applicable regulations, including those prescribed
by the Ontario Ministry of Natural Resources (MNR)
and the Ontario Ministry of the Environment. Typically,
mining leases are for a term of 21 years, include renewal
provisions, are subject to annual lease payments and
may cover mining and surface rights or solely mining
rights. A mining lease cannot be transferred or mortgaged
by the lessee without the prior consent of the MNDM,
which process requires the lessee to submit various
documentation and pay a fee.
• Freehold Lands / Patented Mining Claims - The owner
of freehold lands holds a fee simple real property interest.
Historically, the holder of a mining claim interested in
removing minerals from the ground could, instead of
obtaining a mining lease, apply to the MNR to acquire
the freehold interest in the subject lands by way of the
issuance of a mining patent. Mining patents may include
surface and mining rights or solely mining rights and
vest in the patentee all of the Crown’s title to the subject
lands and to all mines and minerals relating to such lands,
subject to any reservations set out in the patent (as may be
varied by the Public Lands Act (Ontario)). New issuances
of mining patents have been replaced by issuances of
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mining leases. Patented claims are subject to annual
Provincial mining taxes and, where surface rights are held,
Provincial mineral land taxes. As the holder of a mining
patent enjoys the freehold interest in the lands that are
the subject of such patent, no consent is required for the
patentee to transfer or mortgage those lands.
• Online Resources - In Ontario, online resources are
available for unpatented claims. The review of patented
claims is completed through title searches that are usually
completed by lawyers or their law clerks. The online
resource for unpatented claims is: www.mci.mndm.gov.
on.ca/claims/clm_mmen.cfm.
6. Québec
Québec’s mining framework is governed by the Province’s
Mining Act and its regulations and is administered by the
Ministère des Resources naturelles et de la Faune (the
Ministry of Natural Resources and Wildlife) (MNRW). The
framework provides for a leasing regime for the extraction of
minerals by way of a mining lease on public lands held by the
Crown that are open for mining activities.
• Mineral Claims - Mineral claims are generally obtained by
map designation (i.e. by selecting available land on maps
prepared by the MNRW) or, alternatively, through the more
traditional staking of claims.
• Mining Leases - The Mining Act governs the granting of
rights for the extraction of mineral substances through
the issuance of mining leases. Mining leases are exclusive
immovable real rights that in Québec constitute separate
property. To obtain a mining lease, a party holding
a previously-obtained and valid mineral claim must
establish and describe the presence of a deposit and file
the requisite land surveys. Mining leases are issued by
the MNRW upon the approval of the Arpenteur général
du Québec (i.e. the Surveyor General of Québec). Mining
leases grant a right to the lessee to enter upon, search
for and extract minerals from the land, subject to the
lessee obtaining other required permits and compliance
with applicable regulations, including environmental
regulations prescribed by the MNRW and the Ministère du
Développement durable, de l’Environnement, de la Faune
et des Parcs (the Ministry of Sustainable Development,
Environment, Wildlife and Parks). Mining leases have
an initial term of 20 years and can be renewed every 10
years while mining continues. The holder is required to
complete and file annual assessment work as prescribed
under the Mining Act. Mining rights may be revoked where
there has been no exploration work or mining operations
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for 10 years. A mining lease cannot be transferred or
mortgaged by the lessee without registration in the
public register of real and immovable mining rights and
the payment of applicable fees. The MNRW imposes
numerous environmental responsibilities on lease
holders. Environmental rehabilitation and restoration
measures include the imposition of financial guarantees
on the lessees and a requirement that an environmental
restoration plan be submitted in advance of the
commencement of mining activities.
• Online Resources - Québec has an advanced online
registry system which provides access to data in the
register of real and immovable mining rights in Québec.
The online system permits users to search mining titles and
customize, display and download maps of mining titles, as
well as apply for map designations or renew claims. Users
may build specific queries by selecting criteria among title
types, status, holders, mineral substance and declared
work. The online system now also enables users to view
Québec’s mining titles in Google Earth.
7. New Brunswick
New Brunswick’s mineral tenure system takes the form of
mineral claims and leases granted by the Crown, with the
Crown retaining ownership of most minerals in the Province
(including those under land held in fee simple). New
Brunswick, like all Canadian jurisdictions except for Alberta,
Nova Scotia and Prince-Edward Island, has adopted a “freeentry” system, allowing persons (including corporations) to
obtain mining leases after staking a claim on a first-comefirst-serve basis so long as certain minimum criteria are met.
• Mining Claims - Under the Mining Act (New Brunswick),
Crown-owned minerals are available for exploration and
extraction, whether such minerals are on privately owned
or Crown owned lands. Mineral claims and mining leases
available in respect of both public lands held by the Crown
that are open for exploration as well as privately owned
lands are administered by the Minister of Natural Resources
(MNR). All land in the Province is open for prospecting
and registration of mineral claims, subject to exceptions,
including but not limited to: where the land is covered by
a preceding mineral claim or mining lease (though where
that claim is for certain minerals only, a prospector may
prospect for other minerals); and where the Crown has
granted land and the minerals are vested in the grantee
(though, again, if the transfer is for certain minerals only,
a prospector may prospect on the land for other minerals,
subject to the terms of the mineral claim). Mineral claims
do not grant the holder any real property interest in the
lands but, after staking and registration, provide the holder
05 Norton Rose Fulbright – October 2013
with the right to conduct certain limited exploration work
with respect to such claims. Thereafter, if the holder wishes
to carry out more extensive exploration work and/or move
to production, they have the right to obtain a mining lease
with respect to such claims. Subject to due registration, a
mineral claim can be transferred, charged or mortgaged by
the holder without obtaining any consents. Mineral claims
carry a term of one year and are renewable for three terms
of one year. No minerals may be extracted from lands that
are the subject of a mineral claim unless the holder also
possesses a mining lease to mine the land.
• Mining Leases - A holder of a recorded mineral claim in
good standing may apply to the MNR to obtain a mining
lease. A mining lease gives the lessee the right of free
access by any reasonable means to and over the lease area,
and the exclusive right to prospect and carry on mining
and production, subject to the lessee meeting certain
conditions, including obtaining other required permits
and compliance with regulations prescribed by the MNR,
the Minister of Agriculture, Fisheries and Aquaculture, the
Minister of the Environment and local government. Such a
leasehold real property interest is governed by the terms of
the mining lease. Mining leases are subject to annual rent,
are granted for a term of 20 years and may be renewed for
three additional terms of 20 years each, though consent for
additional terms may be withheld by the Minister where it
is in the public interest to do so.
• Online Resources - New Brunswick maintains NB
e-CLAIMS, an online mineral claim acquisition and
administration system. NB e-CLAIMS provides for the
viewing and printing of maps showing the location of
mineral tenures throughout the Province, allows for the
querying of databases containing public information
concerning mineral tenures and for the acquisition and
maintenance of mineral claims. For more information, visit
www.nbeclaims.gnb.ca/nbeclaims.
8. Nova Scotia
Nova Scotia’s mining tenure system takes the form of mineral
rights granted by the Crown. Nova Scotia is one of three
Provincial and territorial jurisdictions which feature a “Crown
discretion” system for the granting of mining leases. Those
who wish to stake claims must obtain a permit which may
be refused in accordance with administrative law principles.
The Crown discretion system permits the Province to refuse
an application, or defer the acceptance of an application for
a license where it believes the application is not in the best
interests of the Province.
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• Mineral Exploration Licences - All minerals in Nova
Scotia are reserved to the Crown (including those under
land held in fee simple) as the Mineral Resources Act
(Nova Scotia) vests title to minerals in the Crown. The
Crown retains the right to explore for, work and remove
such minerals. Exploration, development or production
of minerals on a claim or lease may only be carried out
where the person is the mineral right holder or does so
with the authority of the mineral right holder. Under the
Mineral Resources Act, the Province makes Crown-owned
minerals available for exploration and extraction, whether
such minerals are on privately owned or Crown owned
lands. Mineral rights in Nova Scotia are acquired and
referenced by means of a map-based staking system. A
mineral exploration licence is required for those seeking
to prospect and search for minerals; extract minerals for
test purposes; or apply for a mining lease within an area
designated by the licence. The licence is valid for one
year from the date it is issued and is renewable subject
to the requirements of the Mineral Resources Act and
its regulations. Licence holders are generally required
to carry out a minimum amount of exploration and/or
prospecting work in order to renew their licence. A report
of assessment work and payment of a fee is required
annually. Applicants must meet certain eligibility criteria
and must obtain the landowner’s permission before
entering on any land for purposes of exploration. In the
case of Crown lands, an applicant must obtain permission
of the Provincial Department of Natural Resources (DNR).
An exploration licence may not be transferred without the
written consent of the Nova Scotia Registry of Mineral and
Petroleum Titles.
• Mining Leases - A mining lease is required for exclusive
rights to specified minerals in Nova Scotia. Such rights
are subject to the terms of the lease and payment of
royalties and rent. No one may carry out production of a
mineral except in accordance with a mineral lease. Mining
leases relate to public lands held by the Crown that are
open for exploration as well as privately owned lands
and are administered by the DNR. A holder of a mineral
exploration licence in good standing may apply to the
Minister to obtain a mining lease, granting the exclusive
right to all or specified minerals in or upon the leased area
for the term of the lease. Mining leases are granted for a
term of 20 years, and may be renewed for any number of
coterminous terms as approved by the Minister. Where
the lessee breaches a term of the lease, the lease may be
forfeited subject to certain relief provisions included in the
Mineral Resources Act. A mining lease can be transferred,
charged or mortgaged by the holder upon filing with the
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Registrar in the prescribed manner and form.
• Online Resources - The Mineral Resources Branch of the
DNR makes available a large number of geoscience digital
products, such as digital maps, digital images and digital
databases, all of which can be downloaded. For more
information, visit www.gov.ns.ca/natr/meb/.
9. Prince Edward Island
Prince Edward Island’s mining tenure system takes the form
of mineral rights granted by the Crown. Prince Edward Island
(PEI) is one of three Provincial and territorial jurisdictions
which feature a “Crown discretion” system for the granting of
mineral licences and leases. Those who wish to stake claims
must obtain a licence. The Crown discretion system permits
the Minister of Finance, Energy and Municipal Affairs to
refuse or defer the acceptance of an application for a license
if, in the discretion of the Minister, the acceptance of the
application is not in the best interests of the Province or
would hinder mineral development of any area.
• Mineral Licences - The Mineral Resources Act (Prince
Edward Island) vests title to minerals in the Crown. Under
the Act, the Province makes Crown-owned minerals
available for exploration and extraction, whether such
minerals are on privately owned or Crown owned lands. A
mineral exploration licence is required for those seeking
to prospect and search for minerals, extract minerals for
test purposes, or to apply for a mining lease within an
area designated by the licence. Exploration, development
or production of minerals on a claim or lease may only
be carried out by the mineral right holder or under the
authority of the mineral right holder. Activities can include
prospecting, survey work, drilling and minor excavation
work. Mineral exploration licenses are valid for one year
from the date issued and are renewable for four terms of 1
year each, subject to the requirements of the The Mineral
Resources Act. A mineral exploration licence may not be
transferred without the written consent of the Minister.
No lessee may enter upon or use for mining purposes
any private lands until the lessee has obtained the right
to enter upon and use the same for mining purposes by
agreement with the owner.
• Mining Leases - A holder of any license may apply for a
lease providing for exclusive rights to specified minerals
in the Province. Such rights are subject to the terms of
the lease and payment of royalties and rent. No one may
carry out production of a mineral except in accordance
with a mineral lease. Mining leases are subject to annual
Provincial mining taxes and, where surface rights are held,
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Provincial land taxes. Mining leases are granted for a term
of 20 years, and may be renewed for a subsequent 20 year
period. Where the lessee breaches a term of the lease, the
lease may be forfeited subject to certain relief provisions
included in the The Mineral Resources Act. A mining lease
can be transferred, charged or mortgaged by the holder
upon obtaining written consent of the Minister. Licensees
must obtain the consent of the owner or occupant of the
lands (whether owned by the Crown or privately) in order
to enter the property subject to the licence. In the absence
of consent, a special licence may be obtained from the
Minister.
• Online Resources - PEI does not maintain significant
online resources of mining registries or licencing
processes.
10. Newfoundland and Labrador
Mineral tenures in Newfoundland and Labrador (NL) operate
principally by way of mineral licenses and mining leases.
• Mineral Exploration Licences - Both mineral exploration
licenses and mining leases relate to public lands held by
the Crown that are open for exploration and are governed
by the Mineral Act (Newfoundland and Labrador) and
administered by the Department of Natural Resources
(DNR). Acquisition of mineral rights, described in
regulations under the Mineral Act, proceed by way online
map staking. A mineral exploration licence gives the
licensee the exclusive right to explore for minerals in, on or
under the area of land described in the licence. A mineral
exploration licence is issued for a 5 year term and may be
renewed and held for a maximum of 20 years, provided
the required annual assessment work is completed,
reported and accepted by the DNR and the renewal fees are
paid. Annual assessment work must be completed on or
before the anniversary date of licence issuance. A licence
may be validly transferred, mortgaged or assigned at any
time by way of a transfer submitted to the Mineral Claims
Recorder. The holder of the mineral exploration license is
entitled to apply for and will generally receive the mining
lease to perform the extraction of minerals, subject to the
claim remaining in good standing.
• Mining Leases - A mineral exploration licence holder
has the right to convert any part of a licence to a mining
lease provided all provisions of the Mineral Act are met. A
mining lease issued under the Mineral Act confers upon
the lessee the exclusive right to develop, extract, remove,
sell, mortgage or otherwise dispose of all unalienated
minerals described in the lease, subject to registration
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under the Province’s Environmental Protection Act and
compliance with applicable regulations. A mining lease
cannot be transferred or mortgaged by the lessee without
the prior written consent of the DNR. Typically, mining
leases are for a term of not more than 25 years with
renewals permitted for up to 10 years.
• Online Resources - The Mineral Rights Administration
Database provides users with an advanced mineral claim
staking process that allows real-time online acquisition of
mineral licences. Maps and mineral rights inquiry forms are
also available online and various prescribed forms can be
found on the DNR’s website at www.nr.gov.nl.ca/nr/mines.
11. Yukon
There are various forms of mineral tenure in the Yukon,
consisting principally of mineral claims and quartz leases
(leases for hard minerals).
• Prospecting In Yukon - A prospecting license is not
required to enter on available land for mining purposes
or to locate, prospect or mine for gold and other precious
minerals or stones. Anyone 18 years or older, or an
individual authorized by any corporation authorized
to carry on business in Yukon, or anyone on behalf of
someone else 18 years or older, may enter on available
land to locate, prospect, and mine for gold and other
precious minerals or stones.
• Mineral Claims - Mineral claims and quartz leases may be
issued for public lands held by the Commissioner of Yukon
that are open for exploration and are governed by The
Quartz Mining Act (QMA) and administered by the Mining
Recorder Office, Energy, Mines and Resources (EMR).
Mineral claims do not grant the holder any real property
interest in the lands comprising such claims, but after
staking and registration, provide the holder with the right
to conduct certain limited exploration work. Thereafter, if
the holder wants to carry out more extensive exploration
work and/or move to production, they have the right to
obtain a mining lease with respect to such claims. The
holder is required to complete a full report of the work
done as prescribed under the QMA. Failure to file such
a report will result in non-renewal of mineral claims. No
minerals may be extracted from lands that are the subject
of a mineral claim; the holder must possess either a mining
lease or a freehold interest to mine the land. Subject to
due registration of any such action, a mining claim can be
transferred, charged or mortgaged by the holder without
obtaining any consents.
• Quartz Leases - Quartz leases are the most secure form of
Norton Rose Fulbright – October 2013 07
Guide to Mining Projects and Mining Finance in Canada
mineral title in the Yukon. Once a mineral find is confirmed
within the limits of a mineral claim, the claim holder
may apply to lease the subsurface of their claim. Quartz
leases create a leasehold real property interest in favour
of the lessee and the exclusive right to enter upon, search
for and extract minerals from the land, subject to the
lessee obtaining other required permits and compliance
with applicable regulations and land claim agreements.
Typically, quartz leases are for a term of 21 years, include
renewal provisions, are subject to annual lease payments
and may cover mining and surface rights or solely mining
rights. A quartz lease cannot be transferred or mortgaged
by the lessee without the prior consent of the EMR.
• Online Resources - Yukon provides an online claims
search system and online maps for mineral and land
tenure, mining and land uses activities, First Nation
Traditional Territories and Settlement Lands, parks and
protected areas. For more information, visit
www.yukonminingrecorder.ca/.
12. Northwest Territories and Nunavut
There are various forms of mineral tenure in the Northwest
Territories (NWT) and Nunavut, consisting principally of
licenses to prospect, mineral claims and mining leases.
• Mineral Claims and Licences to Prospect - In the NWT
and Nunavut, mineral claims and mining leases are issued
for public lands held by the Crown that are open for
exploration and are governed by the Territorial Lands Act
and its related Northwest Territories and Nunavut Mining
Regulations and administered by the Mining Recorder’s
Office, Aboriginal Affairs and Northern Development
Canada (AANDC). Mineral claims do not grant the holder
any real property interest in the lands comprising such
claims, but after staking and registration, allow the holder
to conduct limited exploration work with respect to such
claims. Thereafter, if the holder wants to carry out more
extensive exploration work and/or move to production,
they have the right to obtain a mining lease with respect
to such claims. A holder of an active license to prospect
can stake a claim on Crown land open for exploration that
is not already under claim or under a prospecting permit.
Only the holder of a prospecting permit may register a
claim within the prospecting permit area. The holder of the
claim is required to complete and file annual assessment
work as prescribed under the Northwest Territories and
Nunavut Mining Regulations. Failure to complete such
assessment work will result in the forfeiture of the claims
back to the Crown (subject to certain relief provisions). No
minerals may be extracted from lands that are the subject
of a mineral claim, as the holder must possess either a
mining lease or a freehold interest to mine the land. A
08 Norton Rose Fulbright – October 2013
mineral claim can be transferred, charged or mortgaged
by the holder without obtaining any consents, though in
order to effect a recorded transfer in the mining registry,
AANDC’s standard form transfer document must be filed
and the applicable fee paid.
On June 29, 2013 a newly proposed regulation, the
repeal of the Northwest Territories and Nunavut Mining
Regulations and its replacement with two separate
regulations, the Northwest Territories Mining Regulations
and the Nunavut Mining Regulations were pre-published
in Canada Gazette Part I for consultation. The intention is
to modernize the mineral tenure provisions of the existing
regulations to better meet current administrative, industry
and legal standards so as to support the implementation
of a new map selection system in Nunavut (planned for
November 2014) and to prepare for the devolution of the
responsibilities over lands and natural resources to the
Government of the Northwest Territories (to take effect
April 1, 2014).
• Mining Leases - A mining lease entered into by the
holder of mineral claims creates a leasehold real property
interest in favour of the lessee governed by the terms of
the lease. Mining leases grant an exclusive right to the
lessee to enter upon, search for and extract minerals from
the land, subject to the lessee obtaining other required
permits and compliance with applicable regulations and
land claim agreements. Typically, mining leases are for a
term of 21 years, include renewal provisions, are subject to
annual lease payments and may cover mining and surface
rights or mining rights alone. A mining lease cannot be
transferred or mortgaged by the lessee without the prior
consent of AANDC, which process requires the lessee to
submit various documentation and pay a fee.
• Online Resources - A “Spatially Integrated Dataset”
permits users to view current data on mineral claims in
the NWT and Nunavut, research geographical data online
and produce customized maps using GIS information with
specific focuses such as minerals, and land claims areas.
For more information, visit www.aadnc-aandc.gc.ca.
Norton Rose Fulbright – October 2013 08
Norton Rose Fulbright
For more information regarding acquiring mineral tenure and
mining rights in Canada, please contact us.
Mario M. Caron
Senior Partner
Norton Rose Fulbright
+1 514.847.4525
[email protected]
Pamela Horton
Partner
Norton Rose Fulbright
+1 416.203.4432
[email protected]
Miguel Manzano
Partner
Norton Rose Fulbright
+1 514.847.4813
[email protected]
Ned Steinman
Partner
Norton Rose Fulbright
+1 613.780.8692
[email protected]
Norton Rose Fulbright – October 2013 09
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