Material Capital Projects Sample Clauses
The 'Material Capital Projects' clause defines and governs significant investments or expenditures on long-term assets, such as major construction, equipment purchases, or infrastructure upgrades. Typically, this clause outlines the criteria for what constitutes a 'material' project, sets approval thresholds, and may require prior consent from certain parties before proceeding with such projects. Its core function is to ensure oversight and control over substantial capital commitments, thereby managing financial risk and maintaining transparency among stakeholders.
Material Capital Projects. The following provisions shall govern the Development of a proposed Material Capital Project:
(a) Where a feasibility study conducted in respect of a proposed Material Capital Project is a Successful Study, the Operating Member may cause the General Manager to prepare a Capital Project Budget in respect of the proposed Material Capital Project. A Material Capital Project that is not supported by a Successful Study may not proceed, and the Operating Member shall not direct the General Manager to prepare a Capital Project Budget, unless the unanimous approval of the Board is first obtained.
(b) Following completion of a Capital Project Budget, a decision to proceed with the Development of the Material Capital Project in accordance with the Capital Project Budget will be put to the Board for its Approval. If the Board Approves the Development of the Material Capital Project, either Member may, by providing written notice (an “Opt-Out Notice”) to the other Member within 30 days of the approval of the Material Capital Project by the Board, elect not to participate in the Material Capital Project (such Member, the “Non-Funding Member”). If no Member has delivered an Opt-Out Notice within the 30 day period prescribed by this Section 6.3(b), both Members shall be deemed to have agreed to fund the Material Capital Project (a “Co-Funded Capital Project”) and shall be required to satisfy any Member Contributions related to the Co-Funded Capital Project in proportion to their Proportionate Interest.
(c) If a Member receives an Opt-Out Notice within the timeframe prescribed by Section 6.3(b), such Member may, within 30 days from the receipt of the Opt-Out Notice, elect to sole fund the Material Capital Project by providing notice to this effect to the Non-Funding Member (a “Sole Funding Notice”). A failure to
Material Capital Projects. 62 6.4 Access to Excluded Development/Exploration Properties. ............................................. 63 6.5