Document ID: chunk:federal_register_of_legislation:F2022L01265:reg:5
Version: federal_register_of_legislation:F2022L01265
Segment Type: reg
Provision Reference: reg 5
Character Range: 3443–5370

5  Definitions

    (1) In this determination:

       deferred transfer farm-out arrangement means an arrangement for the transfer of a percentage interest in a mining tenement from a farmor to a farmee, under which:

         (a)                 the farmor provides the farmee with a right to acquire the interest in the mining tenement if the farmee meets all of its exploration commitments and any payment requirements to earn that interest (the earn-in requirements) within a specified period of time (the earn-in period);

         (b)                 most or all of the exploration commitments to earn that interest are at the discretion of the farmee;

         (c)                 the farmor grants to the farmee a right to exclusive use and access of the mining tenement to carry out the exploration commitments;

         (d)                 there is a provision of an exploration benefit by the farmee to the farmor;

         (e)                 the farmor will transfer the interest to the farmee at the end of the earn-in period if:

         i) the farmee satisfies the earn-in requirements in the earn-in period;

         ii) the farmee exercises the right to acquire the interest; and

         iii) all necessary government approvals are granted.

       exploration benefit means the benefit that flows to the farmor from the farmee's exploration commitments, which is consideration (or part of the consideration) for the supply of an interest in the mining tenement by the farmor under a deferred transfer farm-out arrangement.

       farmor means the owner of an interest in a mining tenement, who enters into a deferred transfer farm-out arrangement with a farmee.

       farmee means the party entering into the deferred transfer farm-out arrangement with the farmor.

    (2) Other expressions in this legislative instrument that are defined in the GST Act have the same meaning as in that Act.