Property Buying Agreements

There are many different types of buying agreements that could come about, however there are three main kinds which consist of a straight out cash deal, lease and bond, and participation. A great amount of the deal has to do with the personal preference of the person or persons selling as well as on the policies of the company, however something else that is very essential is the actual nature of the deposit, the position the prospector is in, and the quantity of money that is involved in the whole process. There are other types of deals that are used such as management contracts or stock interest arrangements but these are not used very often.

Straight out cash deal
The only cases in which a company will offer a straight out cash purchase of a mine would be if they feel the mine is being offered at a really bargain price. If the company does not come to an agreement with a cash deal, the buying price will usually be paid over a certain amount of years, which is usually anywhere from three to five years. The purchaser in most cases holds the right to terminate the agreement at any time and is not obligated to continue making more payments.