A Guide to Acquiring Mineral Rights in SaskatchewaA Guide to Acquiring Mineral Rights in Saskatchewan
Statutes and Regulations
The Crown Minerals Act
SS 1984-85, c.C-50.2
Any reference to Section (s.) refers to The Mineral Disposition Regulations, 1986, , Saskatchewan Regulations 399/86, dated April 8, 1986.
Eligibility to Stake and Disposition Holder Obligations
Eligibility for staking in the unsurveyed area (s. 19):
Any natural person may stake out a claim area in Saskatchewan; and
There are no residency requirements.
Application to record a claim in the surveyed area (s. 31):
Any "person" which includes a natural person, corporation, company, government, governmental agency, co-owner or party and includes the successors, heirs, executors, administrators, or other legal representatives of such a person may apply for a disposition in a surveyed area.
Obligations of a disposition holder:
The holder of a recorded disposition shall, during each disposition year, expend the amounts as required by the Regulations in exploration operations on those lands and shall submit a report in duplicate, as evidence of this work (s. 36).
During the term of a disposition in the unsurveyed area, the holder shall maintain any posts or markings delineating the disposition area in a state of repair so as to be readily identifiable (s 81).
If a holder of a lease produces any mineral, mineral ore or mineral-bearing substance from their lease lands, they must notify the administrator within ten days after the commencement of active mining operations that the mine is active (s. 67)
If a royalty is payable on a lease area, the amount shall be calculated and paid in accordance with the Schedule to the Regulations.
All drill core obtained for the purpose of mineral exploration and development on disposition lands shall be retained unless permission is received from the Minister to dispose of it (s. 101).
Acquisition of Mineral Dispositions
Permit:
A permit is available to give exclusive prospecting rights to a large area: minimum 10,000 ha and maximum 50,000 ha (s. 8) However, if an area is subject to a high level of exploration and development activity, a permit may not be granted in that area (s. 7).
Any person may apply to the Minister for a permit to prospect for minerals in a permit area, on paying a recording fee of $0.15 per hectare and submitting a cash deposit of $15,000.00 at the time of application (s. 6).
The Minister may grant or refuse to grant the permit (s. 7).
Permits may be applied for during the period December 1st to January 31st in any year (s. 6).
Claim: In a surveyed area, a claim is acquired by map staking.An application to record a claim in a surveyed area is made to theDepartment by stating the full legal description of the claim, andsubmitting the required fee of $0.30 per hectare (s. 31).
In asurveyed area, a claim is acquired by . An application to record aclaim in a surveyed area is made to the Department by stating the fulllegal description of the claim, and submitting the required fee of$0.30 per hectare (s. 31).
In an unsurveyed area, a claim is acquired by ground staking.To stake a claim in an unsurveyed area, a post is erected at eachcorner, the outer boundaries are delineated by blazing trees, cuttingunderbrush, placing pickets or other appropriate methods, and the postsare marked with the required information. Metal tags, available fromthe Department, must be affixed to the posts at the time of staking orwithin one year of the date of recording (ss. 21 to 24).
Anapplication to record a claim that is ground staked in an unsurveyedarea must be submitted within 30 days of staking (s 32). Theapplication is made to the Department on an approved form, accompaniedby the required fee and a plan at 1:50,000 scale showing the positionof the claim and the claim posts, and the distance along the boundariesbetween posts and between posts and any bodies of water (s. 32).
Priority between applications for dispositions is determined by (s. 78):
in a surveyed area, the time and date of receipt by the Department of the completed application.
in an unsurveyed area, the time and date of completion of the staking as inscribed on the No. 1 post.
Ifno clear priority can be established, then on the basis of a fieldinspection, the application of the staker whose staking most strictlycomplies with the Regulations may be accepted.
Lease: The holder of a claim may convert that claim to a lease or leases (s. 45).
The holder of a claim may convert that claim to a lease or leases (s. 45).
Therequirements for staking out a lease are the same as for staking out aclaim and the application for a lease shall be accompanied by (s. 46):
a location plan showing the location of the posts at 1:50,000 scale; and
the prescribed recording fee of $100.00.
Ifa Saskatchewan land surveyor surveys the outer boundaries of the leasearea, it is not necessary for the lease area to be staked out. However,metal lease tags must be affixed to the corner posts of the lease area.
Rights Granted by Mineral Dispositions
Permit:The holder has exclusive rights to prospect for the minerals in thepermit area and to convert any or all of the permit into a claim orclaims (ss. 5 & 18).
Claim: Subject to the Regulations, aclaim holder has the exclusive rights to explore and prospect for theminerals in the claim area and to convert any portion or all of theclaim into a lease or leases (S. 35).
Subject to theRegulations, a claim holder has the exclusive rights to explore andprospect for the minerals in the claim area and to convert any portionor all of the claim into a lease or leases (S. 35).
Lease:A lease grants the exclusive rights to explore for, dig, work, mine,recover, procure and carry away the minerals within the lease areasubject to the payment of royalties (S. 54).
A lease grants theexclusive rights to explore for, dig, work, mine, recover, procure andcarry away the minerals within the lease area subject to the payment ofroyalties (S. 54).
NOTE: "The Mineral Disposition Regulations"regulate placer mining and, therefore, a mineral claim or lease mustalso be applied for under these regulations when placer mining is beingundertaken.
"The Mineral Disposition Regulations"regulate placer mining and, therefore, a mineral claim or lease mustalso be applied for under these regulations when placer mining is beingundertaken.
Physical Characteristics of Mineral Dispositions
Permit: A permit covers an area of not less than 10 000 hectares nor more that 50 000 hectares (S. 8).
Claim:
A claim in a surveyed area is at least one legal subdivision, being not less than 16 hectares nor more than 6 000 hectares (s. 30).
In an unsurveyed area a claim comprises not less than 16 hectares nor more than 6 000 hectares. The length of the claim may not exceed six times its width (s. 20).
If it is not possible to stake out a claim area of 16 hectares or more due to the presence of prior adjoining dispositions or other lands not available for disposition, a claim area of less than 16 hectares must be staked out in accordance with the requirements of the Regulations but may have less than four corner posts and may deviate from a rectangular shape (ss. 25 & 26).
Lease erstaunt ne or more leases may be obtained for the entire area covered by aclaim (s. 50, provided that each parcel of lease land is rectangularand its length does not exceed six times its width (S. 48).
Oneor more leases may be obtained for the entire area covered by a claim(s. 50, provided that each parcel of lease land is rectangular and itslength does not exceed six times its width (S. 48).
Duration and Renewability
Permit: A permit may be held for two years. It cannot be renewed (s. 9).
Claim:A claim may be held for two years and thereafter from year to yearsubject to the holder expending the required amounts in explorationoperations on the claim lands (s. 34).
A claim may be held fortwo years and thereafter from year to year subject to the holderexpending the required amounts in exploration operations on the claimlands (s. 34).
Lease: A lease is issued for a term not exceedingten years, and is renewable for further terms of 10 years, providedregulatory requirements are met (ss. 51 & 52).
A lease isissued for a term not exceeding ten years, and is renewable for furtherterms of 10 years, provided regulatory requirements are met (ss. 51& 52).
Work Requirements
The following exploration and development work will be accepted as assessment work for a permit, claim or lease (s. 69):
Stripping and trenching;
drilling;
geological, geophysical, and geochemical surveys;
prospecting;
necessary travelling and transportation costs, up to 10% of the cost of the assessment work performed; and
any other type of work approved by the Minister.
The manner in which work must be reported is described in detail in the Regulations (ss. 70, 71 & Appendix 2).
Expenditures
Permit: A permit holder must make the following minimum expenditures on assessment work (s. 13):
A permit holder must make the following minimum expenditures on assessment work (s. 13):
1st year - $1.25 per hectare
2nd year - $4.00 per hectare
Onor before the beginning of each permit year, the permittee must make adeposit of $15,000.00 as a guarantee for making the requiredexpenditures each year, subject to refund at any time during the yearon proof that the expenditures have been made.
Claim: The holder of a claim must make the following minimum expenditures on assessment work (s. 36):
The holder of a claim must make the following minimum expenditures on assessment work (s. 36):
1st year - nil
2nd to 10th year - $12.00 per hectare per year
After 10th year - $25.00 per hectare per year .
Lease: The lessee must make the following minimum expenditures on assessment work (s. 55):
The lessee must make the following minimum expenditures on assessment work (s. 55):
1st to 10th year - $25.00 per hectare per year
11th to 20th year - $50.00 per hectare per year
after the 20th year - $75.00 per hectare per year
Adisposition holder may pay cash in-lieu-of work, or may obtain anextension of up to one year by submitting a cash deposit or bond (ss.39 & 58).
Deficiency Payments: If a deficiency payment ismade in-lieu-of work for a disposition year, the deficiency deposit mayrefunded if sufficient work is undertaken within the next year to coverthe requirement for two years. If sufficient work is not submitted, allor a portion of the deficiency deposit may be forfeited to the Crown.
:If a deficiency payment is made in-lieu-of work for a disposition year,the deficiency deposit may refunded if sufficient work is undertakenwithin the next year to cover the requirement for two years. Ifsufficient work is not submitted, all or a portion of the deficiencydeposit may be forfeited to the Crown.
Deficiency cash payments,whether refunded or not, cannot be made for more than three consecutiveyears. After this time, work must be undertaken by the holder for atleast one year (S. 39 & 58).
Extension of Time: Anextension of time may be granted by the Minister to allow a holder anadditional period of either 3, 6, 9 or 12 months to meet theexpenditure requirements. There is a $30.00 application fee perdisposition and if the work requirement is not met the cash deposit isforfeited to the Crown (s. 42).
: An extension of time may begranted by the Minister to allow a holder an additional period ofeither 3, 6, 9 or 12 months to meet the expenditure requirements. Thereis a $30.00 application fee per disposition and if the work requirementis not met the cash deposit is forfeited to the Crown (s. 42).
Excesswork in one year may be credited towards work requirements insubsequent years for the term of the disposition (S. 38 & 57).
Grouping:A holder of contiguous claims or leases in good standing may apply togroup these claims or leases for the purpose of aggregatingexpenditures requirements and assessment work. The aggregate areacannot exceed 10 000 hectares. No disposition which previously formedpart of a group, shall become part of another group until the expiry ofone year from the date of receipt of application. The fee to group is$5.00 per disposition with a minimum charge of $25.00 (S. 40 & 59).
Aholder of contiguous claims or leases in good standing may apply togroup these claims or leases for the purpose of aggregatingexpenditures requirements and assessment work. The aggregate areacannot exceed 10 000 hectares. No disposition which previously formedpart of a group, shall become part of another group until the expiry ofone year from the date of receipt of application. The fee to group is$5.00 per disposition with a minimum charge of $25.00 (S. 40 & 59).
Claims and leases cannot form part of the same grouping.
Transfer of Interests
Permit,Claim, Lease: Any assignment or transfer of any disposition or of anyrights under a disposition should be submitted to the Department ofEnergy and Mines for registration. It must be submitted in duplicate onan approved form along with the prescribed fee (S. 109 & Appendix1).
Any assignment or transfer of any disposition or of anyrights under a disposition should be submitted to the Department ofEnergy and Mines for registration. It must be submitted in duplicate onan approved form along with the prescribed fee (S. 109 & Appendix1).
The Minister may refuse the registration of any such assignment or transfer (S. 109).
Changeof name or amalgamation: If a holder changes names or amalgamates withanother corporation, the holder must provide the recorder with:
If a holder changes names or amalgamates with another corporation, the holder must provide the recorder with:
a written notification of a change of name;
a list of the disposition numbers affected;
the registration fee; and
a copy of a Saskatchewan Certificate of Amendment or Certificate of Amalgamation as required by Section 262 of "The Business Corporations Act" (s. 94).
Cancellation of Interest in a Disposition
TheMinister may cancel any Crown disposition of minerals for a breach ofthe terms of the disposition or of the Act or Regulations. Unless theRegulations provide for automatic lapse of the disposition, theMinister must give 60 days' notice for the remedy of the default (s. 9of The Crown Minerals Act; and s. 97).
The Minister may grantrelief from any cancellation or loss of rights with respect to a Crowndisposition, on such terms as deemed just (s. 10 of The Crown MineralsAct).
Permit, Claim: A claim or permit shall lapse and be nulland void if assessment work requirements are not met within the propertime or if the required fees are not paid (s. 96).
A claim orpermit shall lapse and be null and void if assessment work requirementsare not met within the proper time or if the required fees are not paid(s. 96).
Lease: A lease shall be cancelled after 60 days notice ifthe holder fails to comply with the terms and conditions of the lease,or of the Act and Regulations (s. 97).
A lease shall becancelled after 60 days notice if the holder fails to comply with theterms and conditions of the lease, or of the Act and Regulations (s.97).
Acquisition of and Compensation for Surface Rights
Acquisitionof surface rights: No disposition of minerals under the Act orRegulations authorizes entry on or use of the surface of land (s. 19 ofThe Crown Minerals Act; and S. 90).
Compensation for surfacerights: A disposition holder must pay compensation to the owner of thesurface rights for any loss or damage that may be caused to the surfaceof the land by the holder re-entering upon, locating, using oroccupying such surface for mining purposes.
A disposition holdermust pay compensation to the owner of the surface rights for any lossor damage that may be caused to the surface of the land by the holderre-entering upon, locating, using or occupying such surface for miningpurposes.
Areas Not Available for Disposition
No disposition shall be granted with respect to any area that is (s. 75):
withdrawn by the Minister;
lawfully occupied for mining purposes;
set aside by the Government of Canada for Indian reserves, national parks, military, or other like reserves;
within the boundaries of any provincial park or representative area, unless otherwise authorized by Lieutenant Governor in Council;
in a surveyed area that is deemed by the Minister to be required for a public purpose;
within an area with respect to which a Crown disposition has been issued for potash, coal or alkali or within a potash restricted drilling area as defined in Section 20 of The Oil and Gas Conservation Regulations, 1985 unless authorized by the Minister.
Aperson requires the prior written consent of the Minister in order toapply for or stake out a disposition area upon lands (s. 76):
reserved by the Crown as a townsite; or
laid out on a registered plan as a city, town or village lots.
TheMinister may withdraw any Crown mineral lands from disposition, and nodispositions will be issued as long as the lands are so withdrawn,except where the Minister determines it to be in the public interest toissue a disposition by agreement or lease on terms and conditionsapproved by the Lieutenant Governor in Council (ss. 4(b) & 21, TheCrown Minerals Act).