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Bullboard - Stock Discussion Forum Plateau Energy Metals Inc. PLUUF

Plateau Energy Metals Inc is an exploration stage company. The company is in the process of acquisition, and exploration, and evaluation of mineral properties in Peru. It is principally engaged in the exploration for uranium on its properties located in the Macusani plateau region of southeastern Peru and the Falchani lithium project.

GREY:PLUUF - Post Discussion

Plateau Energy Metals Inc. > Some notes about the upcoming application process
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Post by juanPeru on Oct 25, 2020 9:35pm

Some notes about the upcoming application process

Here are some points about the application process (likely to start on Nov. 2nd) that I think are worth knowing.

GML = General Mining Law (1)
RMP = Regulation of Mining Procedures (2)

What's the regular application process like? (RMP Articles 20, 22, 30, 31)

The applicant has to pay the validity fee for the new concession ($3 per hactare) and the processing fee ($130 aprox.) and then fill a writen request and present it to Ingemmet. A unique code is generated (with the associated timestamp) so that the aplicant can track the progress of its petition on the web (Sidemcat).

If Ingemmet detects that there is another overlapping petition with a previous timestamp, then the area is substracted from the petition and the process continues. If after subsequent substractions the petition is empty then it's rejected.

After Ingemmet has stripped the petition of overlapping areas, a 2 - 3 months process follows through which the new concession is adequately advertised on local newspapers, the legal and technical areas of Ingemmet issue their corresponding conformities with the new concession, and finally, Ingemmet's President issues a Resolution granting the title of the new concession.

What's the minimum area of a concession? (GML Art. 11)

The minimum "unit" is a square of 1km x 1km (100 hectares). Concessions are granted in a minimum of 1 unit and a maximum of 10 adyacent units. For example, looking at the map covering PLU's concessions (3) it is easy to determine visually the size of each concession.

Why is an auction needed this time? (GML Art. 128, RMP Art. 22, 39)

Because, according to the news, there will be hundreds of speculators interested in PLU's 9 concessions, particulary in the one containing lithium (Ocacasa 4). So we can assume that at 8:15am Nov. 2nd they will be standing in line at Ingemmet's gates, and according to the laws that means they will all (including Macusani Yellowcake) be assigned the same timestamp, and, consequently, an auction will be needed to decide who continues with the regular application process.

Bear in mind that it's is possible that different applicants make petitions for areas smaller than any PLU concession. Take Ocacasa 4, for example. It has 1,000 hectares, which means it's comprised of ten units. Thus, in the worst case, 10 separate auctions will be needed to decide who continues the regular application process for each of those units.

How much time does each auction take? (GML Art. 128, RMP Art. 39 - 49) 

Ingemmet has a term of 20 days counted since the tenth day after the application date to call an auction to determine which applicant is entitled to continue with the application process for each unit or set of units in dispute. In the present case the application date is Nov. 2nd, so Ingemmet has to call the auction (or auctions) between November 12th and December 2nd.

The day of the auction each competitor hands in a closed envelop containing an amount of money (in cash or check) equivalent to 20% of his offer. Each offer is read aloud, and the area in dispute is granted to the competitor that made the highest offer. The winner has two working days of term to deposit the balance of his offer on Ingemmet's account, and three working days to accredit the payment through a written request. If he doesn't, he loses his 20% advance and the area in dispute is granted to the competitor who made the second highest offer, and so on. Once the winner has complied to deposit his full offer, Ingemmet reinburses the 20% advances made by those who lost. In case of a tie, the winner is decided through a draw.

Every step in the auction process is registered on Sidemcat.


(1) https://www2.congreso.gob.pe/sicr/cendocbib/con3_uibd.nsf/89E200B65DCF6DE9052578C30077AC47/$FILE/DS_014-92-EM.pdf

(2) https://busquedas.elperuano.pe/normaslegales/decreto-supremo-que-aprueba-el-reglamento-de-procedimientos-decreto-supremo-no-020-2020-em-1876188-1/

(3) https://cdn.ceo.ca/1fpc7c6-mapa_concesiones.pdf
Comment by aspen865 on Oct 26, 2020 1:00am
This post has been removed in accordance with Community Policy