Mining claim partnership

[IDAu]

I'm looking for advice about what experienced people would do in this situation. I keep hearing horror stories about partnerships.


Last year I acquired an underground mine. I thought the guy had passed and that's why it was let go, but then found out he was alive. In the last few weeks we got in contact. At first he swore he paid the fee and spent a week trying to find receipts, and talking to BLM/lawyers. He called me again and said he thinks we can come to an agreement without involving lawyers and partner up. He knows he didn't pay the yearly fee and admits the cards are in my hands.

He seems like a very nice guy. He has an immense amount of history and knowledge (having had the mine in his family for nearly 30 years), and an approved NOI, as well as a lot of money at his disposal. He's put hundreds of thousands of dollars in this mine. And while he doesn't want to give me specifics until we agree on a partnership, it sounds like an enormous amount of gold has come out of there. He spoke of at one time thinking of selling it to an interested corporation. Talk of an old vein/drift he was trying to get on with very high grade, etc.

After all the bad stories my gut says no, don't involve him at all, but my heart says yes. I feel really bad for this guy. He's a lot older and not in great health. When he thought he still owned it he mentioned wanting to partner with me. If his story is true that he's been waiting on an NOI just to screw up and lose it not long after it got approved....ouch.


Where do I even begin with this? It sounds like with his financial backing, knowledge, and NOI, a partnership would likely allow us to get in and mining immediately. By myself, I may struggle getting much done due to lack of funds and knowledge of the situation.

But I've been warned about "subtle takeovers" and a lot of other legal things that could be used against me to take it back or at least gain control if he's on the paperwork at all.


What would you do? How would you protect yourself? If I could 100% protect myself and retain control I would have no problem splitting the gold or working something out to keep him involved in something he's so emotionally attached to. If this was a small hobby operation rather than a possible full time job operation, I wouldn't care so much.

 

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[Assembler]

I'm looking for advice about what experienced people would do in this situation. I keep hearing horror stories about partnerships.


Last year I acquired an underground mine. I thought the guy had passed and that's why it was let go, but then found out he was alive. In the last few weeks we got in contact. At first he swore he paid the fee and spent a week trying to find receipts, and talking to BLM/lawyers. He called me again and said he thinks we can come to an agreement without involving lawyers and partner up. He knows he didn't pay the yearly fee and admits the cards are in my hands.

He seems like a very nice guy. He has an immense amount of history and knowledge (having had the mine in his family for nearly 30 years), and an approved NOI, as well as a lot of money at his disposal. He's put hundreds of thousands of dollars in this mine. And while he doesn't want to give me specifics until we agree on a partnership, it sounds like an enormous amount of gold has come out of there. He spoke of at one time thinking of selling it to an interested corporation. Talk of an old vein/drift he was trying to get on with very high grade, etc.

After all the bad stories my gut says no, don't involve him at all, but my heart says yes. I feel really bad for this guy. He's a lot older and not in great health. When he thought he still owned it he mentioned wanting to partner with me. If his story is true that he's been waiting on an NOI just to screw up and lose it not long after it got approved....ouch.


Where do I even begin with this? It sounds like with his financial backing, knowledge, and NOI, a partnership would likely allow us to get in and mining immediately. By myself, I may struggle getting much done due to lack of funds and knowledge of the situation.

But I've been warned about "subtle takeovers" and a lot of other legal things that could be used against me to take it back or at least gain control if he's on the paperwork at all.


What would you do? How would you protect yourself? If I could 100% protect myself and retain control I would have no problem splitting the gold or working something out to keep him involved in something he's so emotionally attached to. If this was a small hobby operation rather than a possible full time job operation, I wouldn't care so much.

Perhaps a percentage work agreement can be drawn up?
This way the older guy says alive with interest and you come out with a lot of more experience and perhaps a better chance of success?
Does the older guy have some family left to help?
I'm sure there are some other questions to ask or think about.

 

[Assembler]

The important question is there enough left to still work with a reasonable return?

 

[IDAu]

The important question is there enough left to still work with a reasonable return?

I'm sure there is. He is very upset about losing it and kept talking about how valuable the claim is. They were working something worthwhile before the portal collapsed. He seems to think it won't be that hard to clear, he just didn't have anyone young and motivated to help.


What is a fair percentage to offer someone in this situation just for knowledge? I can't figure out what exactly his NOI is for. From what I can tell as long as you're not disturbing the surface or pulling out large volumes of material daily it shouldn't be needed.


No idea about family left. If he had interested kids I imagine they would have been working it with him.

 

[Assembler]

I'm sure there is. He is very upset about losing it and kept talking about how valuable the claim is. They were working something worthwhile before the portal collapsed. He seems to think it won't be that hard to clear, he just didn't have anyone young and motivated to help.


What is a fair percentage to offer someone in this situation just for knowledge? I can't figure out what exactly his NOI is for. From what I can tell as long as you're not disturbing the surface or pulling out large volumes of material daily it shouldn't be needed.


No idea about family left. If he had interested kids I imagine they would have been working it with him.

Clearing and shoring out the collapse is just part of the problem. You so far have no idea what other work is needed as well what is at the end of each workings?
Your life is worth something if the portal collapses again.
As a new "Discovery" the work for it needs to be done.

Have no idea what the NOI is for?
Perhaps the family left can help answer some questions?
Perhaps the family can fill in some blanks as to what rock was sorted or worked?
Well if you have over a 50% interest you will control the mine, something to consider.

 

[Assembler]

I'm thinking the NOI is used for the fill in on the surface of the claim for waste rock / tailings.

Another reason for NOI is for cutting wood for timber supports etc.

 

[Gold:Au]

My gut feeling agrees with yours, walk away.

But having said that, if you think he could be beneficial to your operation, there are ways to protect yourself and your interests. For instance, you could set up a company/business and grant that entity sole rights to mine the lease.

Then you can grant the previous owner a percentage share of that company you think he deserves, say, 25%.

This will give him an interest in but no control over the operating of the lease while also keeping him at arm's length from any ownership. If it goes well, you can offer bonus share options. If it doesn't, then the business folds and you get to keep your lease.

 

[russau]

Sounds like a con to me ! Run away from this potential scam person ! He dropped the ball from his own lips , NOT YOU ! If you have all your paper work done POST YOU CLAIM TO HELP PREVENT TREASSPASS or POTENTIAL VANDALIZEM TO YOUR CLAIM !! If the previous owner forgot to do paper work "SHAME ON HIM " he probly would forget something else to his benifit and NOT YOURS ! THINK ABOUT IT !!!!!!

 

[IDAu]

My gut feeling agrees with yours, walk away.

But having said that, if you think he could be beneficial to your operation, there are ways to protect yourself and your interests. For instance, you could set up a company/business and grant that entity sole rights to mine the lease.

Then you can grant the previous owner a percentage share of that company you think he deserves, say, 25%.

This will give him an interest in but no control over the operating of the lease while also keeping him at arm's length from any ownership. If it goes well, you can offer bonus share options. If it doesn't, then the business folds and you get to keep your lease.

Thank you, this is what I was looking for!

If I can keep him OFF the claim paperwork but still partner with him in the way you mention, I would be open to something.


I started an LLC. In this situation you’re saying make him co owner of THAT, but leave the claim in my name right? Then if the llc (operation) fails or dissolves, I still personally own the claim.

Sounds like a con to me ! Run away from this potential scam person ! He dropped the ball from his own lips , NOT YOU ! If you have all your paper work done POST YOU CLAIM TO HELP PREVENT TREASSPASS or POTENTIAL VANDALIZEM TO YOUR CLAIM !! If the previous owner forgot to do paper work "SHAME ON HIM " he probly would forget something else to his benifit and NOT YOURS ! THINK ABOUT IT !!!!!!

And this is why I don’t want him on the paperwork. Someone else mentioned something similar- “Do you want him part owner if he can’t even remember to keep up on something that important?”

I just found out you basically have an entire year to pay your maintenance fee in advance, and paid mine until sept 1 2026. If it’s that important I really feel there are no excuses having learned that.

 

[Assembler]

And this is why I don’t want him on the paperwork. Someone else mentioned something similar- “Do you want him part owner if he can’t even remember to keep up on something that important?”

Good idea not having him on the papers as owner. There could be a percentage frame work drawn up depending on what his contribution is such as money and what work is done ?

It is possible that the reason he did not keep up on paper work is to get someone else to finance / work the claim due to poor rock today at the claim?

A new "Discovery" is still needed to help "Perfect the claim". Perhaps the deadline is September 1st 2026?

These are just the questions that come up first here.

 

[Assembler]

Sounds like a con to me ! Run away from this potential scam person ! He dropped the ball from his own lips , NOT YOU ! If you have all your paper work done POST YOU CLAIM TO HELP PREVENT TREASSPASS or POTENTIAL VANDALIZEM TO YOUR CLAIM !! If the previous owner forgot to do paper work "SHAME ON HIM " he probly would forget something else to his benifit and NOT YOURS ! THINK ABOUT IT !!!!!!

Assuming this is a scam to get someone new in to finance and work the claim. Simply ask for some proof of out come returns on time / effort would be a place to start exposing the scam.

Perhaps the claim is not worth much now if the rock is now poor or pinched out?

 

[Assembler]

My gut feeling agrees with yours, walk away.

But having said that, if you think he could be beneficial to your operation, there are ways to protect yourself and your interests. For instance, you could set up a company/business and grant that entity sole rights to mine the lease.

Then you can grant the previous owner a percentage share of that company you think he deserves, say, 25%.

This will give him an interest in but no control over the operating of the lease while also keeping him at arm's length from any ownership. If it goes well, you can offer bonus share options. If it doesn't, then the business folds and you get to keep your lease.

A new timely "Discovery work" required on "Record" will clear issues of location and "Ownership".
A location / discovery of a deposit is needed first.

 

[IDAu]

A new timely "Discovery work" required on "Record" will clear issues of location and "Ownership".
A location / discovery of a deposit is needed first.

I'm not sure what you mean by discovery. I located low grade vein material near the portal (that probably isn't worth mining) prior to filing, but it should count all the same.


Unless it's an elaborate hoax between 4 or 5 people, I doubt it. At most he would have been setting it up to find someone to do the labor due to his age. He's admitted he can't do much, but he's the one with the money to dump in it. Of the handful of people that knew about the mine or the guy, no one could believe he let it go. People make mistakes.

I don't think it would have been that hard to find someone to partner with to do the labor while he still owned it. He's got money and has hired people to come retimber and do other work. So I reaaaally doubt this was a set up.

As I mentioned he's got plenty of money. He owns a fairly large construction business from what I understand. I think he just got extremely busy and either forgot, or thought he could get away with it lapsing for a few months.

It's all hearsay until I see myself, but he can shot me a spot not far in right now with 20-30 colors per sample pan. Another old timer that helped him many years ago said "You don't need to run a lot of material to do well in that mine."

 

[Assembler]

Most States have requirement for "Discovery work" outside of annual work.

Unless it's an elaborate hoax between 4 or 5 people, I doubt it. At most he would have been setting it up to find someone to do the labor due to his age. He's admitted he can't do much, but he's the one with the money to dump in it. Of the handful of people that knew about the mine or the guy, no one could believe he let it go. People make mistakes.

I don't think it would have been that hard to find someone to partner with to do the labor while he still owned it. He's got money and has hired people to come retimber and do other work. So I reaaaally doubt this was a set up.

That is along the lines of what I'm thinking is happening.

It's all hearsay until I see myself, but he can shot me a spot not far in right now with 20-30 colors per sample pan. Another old timer that helped him many years ago said "You don't need to run a lot of material to do well in that mine."

It should be not to hard to find a plottable deposit then. Sounds like it is in the form of pockets as a general rule?

As a backup you should be able to work for just wages / pay for time and food for example to carry you over to better material / rock.

 

[Assembler]

Just like the guy you know and talk to did, you should be able to schematically uncover rock to see with your own eyes the likely series of events for the formation of the pocket or numbers of pockets in a general given deposit. The change in the rock should help clue you in as a good indicator of a pocket near by.
For example perhaps a strong metamorphism is the key factor from other near by rock?
Perhaps a fisher or sudden crack for a metamorphic flow to happen?
There could be more then one type of event that you will come across?

 

[Assembler]

All you really need is a good line in the direction of and the odds are you will have a new "Discovery".
September 1st. is likely the deadline for recording such provable "Work".

 

[IDAu]

All you really need is a good line in the direction of and the odds are you will have a new "Discovery".
September 1st. is likely the deadline for recording such provable "Work".

Not a clue what you’re talking about with this “new discovery” that’s required by a deadline.

 

[Assembler]

Not a clue what you’re talking about with this “new discovery” that’s required by a deadline.

The guy before you made a record of "Discovery work" that is not yours. As the new locator the time is running.

By pointing out a line is referring to the bearing direction of the mineral deposits there where the next pocket zone may be if not cleaned out yet.

 

[IDAu]

The guy before you made a record of "Discovery work" that is not yours. As the new locator the time is running.

By pointing out a line is referring to the bearing direction of the mineral deposits there where the next pocket zone may be if not cleaned out yet.

Please reference whatever you are talking about. Or someone else chime in here.

I’ve made my mineral discovery. I’ve filed and it’s active. There should be nothing else required to keep this claim other than my yearly assessment work.


Discovery Requirement:
A mining claim cannot be established until a valuable mineral deposit is physically discovered within the boundaries of the claim


I've established it......

 

[Gold:Au]

If I can keep him OFF the claim paperwork but still partner with him in the way you mention, I would be open to something.

I started an LLC. In this situation you’re saying make him co owner of THAT, but leave the claim in my name right? Then if the llc (operation) fails or dissolves, I still personally own the claim.

And this is why I don’t want him on the paperwork. Someone else mentioned something similar- “Do you want him part owner if he can’t even remember to keep up on something that important?”

Yes, that's pretty much what I am saying. I live in another country to you, so you'll need your own legal advice obviously, but that setup could get the complaining (and potentially disruptive) ex-owner on your side and allow you access to his intimate knowledge of the lease without granting him any actual rights to or ownership of, that lease.