Exploration Program Expenditures Clause Samples
Exploration Program Expenditures. Trio agrees under the terms of this Agreement to fund a $1.3 million dollar exploration program on or before December 31, 2012 upon the Property through a prepared mining exploration work program. Costs shall only be incurred under and pursuant to Programs prepared by the Operator. The Operator shall be entitled to a 10% administration fee for the work programs and an allowance for cost overruns of 10% in addition to any budgeted costs.
Exploration Program Expenditures. (a) each of the Participants covenants and agrees to pay its Contributing Interest share of all firm Exploration Program Expenditures which are estimated to be $4,471,500 Dollars, as set forth on Schedule "D" attached hereto. As contribution toward payment of such costs, each Participant shall pay to Frontier its respective share of the following gross amounts within 15 days of receipt of a cash call:
(1) Fourth Quarter - 1997 $ 32,500 (2) First Quarter - 1998 $940,000
(3) Second Quarter - 1998 $349,000
(4) Third Quarter - 1998 $260,000
(5) Fourth Quarter - 1998 $500,000 Notwithstanding payment of these amounts, each Participant shall remain responsible for its share of any Exploration Program Expenditures exceeding, in aggregate, $4,471,500.
(b) Frontier will provide each Participant with a cash call, accompanied with an approval for expenditure for all drilling and completion costs, for each operation in respect of which Exploration Program Expenditures will be made as well as a final statement, following completion of such operation, of the actual Exploration Program Expenditures made in respect of such operation.
(c) Each Participant's Contributing Interest share of contingent Exploration Program Expenditures, which are estimated to be $2,275,000, are set forth on Schedule "D" attached hereto. Frontier will not cash call a Participant for its share of contingent Exploration Program Expenditures until such time as such Participant has received notice that such contingent Exploration Program Expenditures are considered by Frontier to be firm Exploration Program Expenditures. Each Participant shall, if they elect to participate pay the amount of the cash call within fifteen (15) days of receipt thereof.