Common use of EXPLORATION PROGRAMS Clause in Contracts

EXPLORATION PROGRAMS. 4.1. The Operator shall prepare draft Programs for consideration by Sunburst de Mexico. Unless otherwise agreed to by Sunburst de Mexico, each Program shall cover a period of six months. The draft Program shall contain a statement in reasonable detail of the proposed Mining Operations, estimates of all Exploration Costs to be incurred and an estimate of the time when they will be incurred, and shall be delivered to Sunburst de Mexico by no later than 60 days prior to the period to which the draft Program relates. Each draft Program shall be accompanied by such reports and data as are reasonably necessary for Sunburst de Mexico to evaluate and assess the results from the Program for the then current six-month period and, to the extent not previously delivered, from earlier Programs. 4.2. Sunburst de Mexico shall review the draft Program prepared and, if it deems fit, adopt the Program, with such modifications, if any, as Sunburst de Mexico deems necessary. The Operator shall be entitled to an allowance for a Cost overrun of 10 percent, in addition to any budgeted Exploration Costs, and any Costs so incurred shall be deemed to be included in the Program, as adopted. 4.3. On the basis of the approved Program and Budget, the Operator shall submit to Sunburst de Mexico prior to the last day of each month, a billing for estimated cash requirements for the next month. Within 10 days after receipt of each billing, Sunburst de Mexico shall advance to the Operator the estimated amount. The Operator shall promptly submit to Sunburst de Mexico ▇▇▇▇▇▇▇▇ for all other authorized expenditures as they are incurred. Time is of the essence in payment of such ▇▇▇▇▇▇▇▇. 4.4. If the Operator suspends or prematurely terminates a Program, any funds advanced in excess of Exploration Costs incurred prior to the suspension or premature termination shall be refunded to Sunburst de Mexico within 60 days of the suspension or premature termination. Unless approved by Sunburst de Mexico, the Operator shall be exclusively liable for the payment of all Costs incurred in excess of 110 percent of any budgeted Exploration Costs. 4.5. Unless otherwise directed by Sunburst de Mexico, the Operator may suspend or terminate prematurely any Program when the Operator, in good faith, considers that conditions are not suitable for the proper continuation or completion of the Program or the results obtained to that time eliminate or substantially impair the technical rationale on which the Program was based. 4.6. If the Operator fails to submit a draft Program or a revised Program by the date set out in this Agreement, the following shall apply: (a) the Operator shall not be entitled to submit a draft Program or revised Program for the subject period; (b) Sunburst de Mexico, within 15 days following the date by which the Operator’s draft Program or revised Program was due, submit a draft Program for the subject period; (c) Sunburst de Mexico shall review the draft Program and, if it deems fit, adopt the Program with such modifications, if any, as Sunburst de Mexico deems necessary; (d) following the completion of the Program the former Operator shall automatically become the Operator.