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HOW
MINING CLAIM ROYALTIES WORK
Royalties
are one of the greatest money making systems in the world. By definition, an
overriding royalty (ORR) is a share of production free and clear of the costs of
production, curved out of the lessee’s (mining company or operator) interest
in the production of the mining claims.
In
our program you do nothing except pay for the acquisition and yearly maintenance
of the mining claims and you receive a percentage of the income from the net
smelter returns paid for all precious mineral mined from the claims, plus any up
front bonuses. (See Contract)
Federal
and State mining claims are claims on public land for mineral exploration and
development. Not all public land is available for mining claims. The Bureau of
Land Management (BLM) on behalf of the Federal government manages the filing of
mining claims on public land. Mining claims also have to be filed in the county
of the state where the claim is located. The county fees may vary from county to
county and state to state. We handle the initial filing of the mining claims
with the BLM and the counties in which they are located.
Under
Federal law a mining claim is for prospecting, mining and processing operations.
Mining claims are not intended for other uses and are specifically forbidden by
law. The mining claims cannot be used for personal or recreational use.
The
mining claims may become patentable after five years of a mining operation on
petition to the U.S. government.
The
federal government does not at this time charge a royalty on mining claim
production as it does for oil and gas production.
In summary, the mining companies will pay an overriding
royalty (ORR) to the owner of the mining claims for the exploration, drilling
and development of those claims. This is the money you share in, plus any
signing bonuses on the assignment of the claims to the mining company. This ORR
ranges from approximately 1% to 5% depending on the desirability of the subject
mining claims. All these factors are subject to negotiation with the mining
company. Since we are all in the same boat we will negotiate the very best deal
we can for royalties and bonuses for all parties who join our program.
HOW
YOU MAKE MONEY
You
will make a percentage of the overriding royalty (ORR) payments from the net
production of uranium and other precious minerals from the claims plus a
percentage of the bonuses paid for the assignment of the claims to a mining
company.
Given the large volumes of production that could come
from mines in this industry the royalties can be in the millions of dollars per
year. Plus, bonus payments for the assignment of mining claims are often quite
substantial and usually cover all the upfront costs of staking and filing the
claims.
A
SCHEDULE OF BUYING MINING CLAIMS
It
is important to have a large number of mining claims as your percentage of the
proceeds will depend on how many mining claims you own in proportion to all the
claims we will be staking and filing and assigning as a block to a mining
company.
All
interest payments are in proportion to the number of mining claims you own in
relationship to the mining claims sold or assigned to a mining company.
In addition to the above one time charges, you will be
responsible for the yearly maintenance fees or other related charges assess by
the BLM. The BLM yearly maintenance fees are a nominal amount of approximately
$175.00 per claim payable on or before September 1st of each year.
The
law governing mining claims in the U.S. is the General Mining Law of 1872. The
mining laws are somewhat complicated and if you have any questions please
consult your attorney.
Our objective is to stake and file the mining claims
and secure the services of a mining company to drill and test the claims for
uranium. We will undertake what action we deem necessary to protect and defend
our mining claims but we cannot guarantee any results or protection for the
claims until we have discovery and production on the claims.
SUMMARY
Proton
Uranium Corporation is offering a unique opportunity to the general public to
participate in purchasing mining claims with us in our prospect area. We have
helped pioneer uranium exploration in this area and we know it very well. We
have already discovered uranium here. In fact, our previous uranium discovery is
the basis of the largest underground uranium mine in the U.S., The Tony M Mine
near Ticaboo, Utah. We did it
once before and we plan on doing it again.
We
are offering our expertise and experience in the uranium industry to act on your
behalf to file mining claims in specific areas of Garfield, Wayne and Emery
Counties, Utah (Prospect Area) where we feel there are the best chances to have
large uranium deposits. Since much of this area is still open land we ask that
you sign an attached Confidentiality Agreement with us to protect us and our
clients. (Confidentiality
Agreement)
We
offer our service in acquiring the best mining claims we can get, evaluate them
for uranium potential and prepare reports for industry companies that may want
to acquire the mining claims for drilling and development.
We
will handle all negotiations with an acceptable mining company. You will share
in all agreed bonuses when the mining claims are assigned and all agreed
royalties on the production for the life of the mining claims.
You have no further obligations except for the purchase
of the mining claims and the yearly maintenance fees.
RELATED
PROSPECTS TO CONSIDER
We
are natural resource exploration specialists. We have a number of natural
resources prospects available. Please check out the following for other
investment opportunities.
Gold
Discovery, LLC
Mr.
Murer has pioneered the geologic theory that is the basis for what we believe
could be one of the BIGGEST GOLD DEPOSITS IN THE WORLD near Goldfield, Nevada.
(See www.GoldDiscoveryNV.com)
The
underlying geology of the Goldfield / Tonopah mineral zones arises from the
volcanic eruptions that took place during the Miocene period (20-23 million
years ago) along a ridge of mountains that contain huge mineral deposits that
have been mined for many years in the region from zones of volcanic vents.
To
date, the Goldfield/ Tonopah area has produced approximately 5.9 million ounces
of gold, 175 million ounces of silver and 7.7 million ounces of copper. (Geologic
Report)
The
tremendous volumes of ascending fluids that created the bonanza of gold, silver
and lithium deposits of the Goldfield and Tonopah districts would have descended
down the flanks of the existing strato-volcanoes to accumulate and evaporate in
the adjacent “reserve pit” formed by the Cambrian rock dam know today as the
Paymaster Ridge. These fluids erupted for over one million years (USGS Bulletin
Number 1646).
Geologic
evidence suggests this natural basin existed at the time of the epithermal
mineralization and it is not difficult to imagine the massive paleo-evaporate
tabular ore concentration that may now underlie the placer accumulation. (Geologic Cross
Section)
During
the initial violent stages of the eruption, the potential of molten metals to be
ejected from the volcanic vents would have also been likely. To date no drilling
has been done to test the bottom of the ‘reserve pit’ for accumulation of
metals that could contain a world class gold deposit. If you are interested in
gold mining claims please see our web site at www.GoldDiscoveryNV.com.
Lithium
Discovery, LLC
Chemetall
Foote Lithium Mine is the largest operating lithium mine in the United States
and is located approximately 5 miles from our lithium prospect area in Esmeralda
County, Nevada. This production area has the highest lithium brines content of
any brines tested by the US Geological Survey in playas and basins of the
southwestern United States. That may be why there are three different companies
in our immediate area looking for key lithium discoveries in addition to the
Chemetall Foote mine production.
We
are in, what we believe, is the sweet spot for lithium brines exploration with
similar geologic features and terrain as the Chemetall Silver Peak Mine. Our
prospect area is ideally situated as a potential lithium brine mining property.
Please see our web site at www.LithiumDiscovery.com.
Universal
Oil & Gas, LLC
Universal
Oil & Gas, LLC is undertaking a program to offer to the general public the
opportunity to participate in the acquisition of Federal Oil and Gas Leases in
high prospect areas for oil and gas exploration and drilling. (See www.UniversalOilLeases.com).
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