Looking at the aerial view of our old and new tenements something struck me that strangely (to me anyway) has never been discussed.
We see in our existing lease rectangle and the two abutting rectangles (new lease applications) we have just expanded into that in both cases (moreso in the new stuff) we don't own everything. To me it seems like there are a mass of pesky, fairly random mostly small squares and rectangles of land that I can only presume are most owned by prior and earlier Santos and Pedros and perhaps the odd Maria too...
Some of these patches (presumedly leases) especially in and around our El Zorro land don't seem to be much bigger than a soccer pitch.
Im guessing many spots where there were alluvial shows on surface were pegged back in the day and many of these neighbors may have pegged these themselves or bought ancient leases over archaic diggings. Some could be old family claims...litle guys basically.
My point being, we don't own it all, is this going to be a problem and does anyone have any idea how it is dealt with?
I am aware Chilean law will be different to Australian but most of the principles will remain the same.
Its clear in my mind already El Zorro at a minimum is commercial and should probably be mined by one or a series of big F/OFF holes in the ground.
Open pit basically. And its likely some of the rest of the ground (new lease application ground) we have picked up will be the same.
The obvious answer is we try to buy them out one by one. But can we face a situation where a bloke named "stubborn Pedro" knowing his soccer pitch sized lease is in the middle of our conceptual super pit tries to charge an inordinate amount to sell and leave?
I know there will be solutions if any of these leases present problems and I know it would be better (always for anyone) to own all land totally, outright, unencumbered etc but we do have neighbors who are no doubt as excited and encouraged as we are by what TSOs drills are discovering.
Should we be trying to buy them all out before anything more is uncovered and their conceptual sell price goes up?
Should we only deal with each lease holder as its proven their holding may be in the way?
I can easily see where TSO drilling and later production could landlock one or two of these guys (if they don't sell or JV there patches with us) which I would think would be another incentive for them to sell.
Surely these patches (which I can only presume are not held by us so are held by others) have had other TSO investors here at least wonder who owns them.?
I recon they are little guys.
Point being is this an issue and what do the good folks of TSO forum think the companies plan is in regards to the little guys leases some who may eventually at least hypothetically be in the way of our big plans..?
Not trying to alarm anyone, I think any issues around this can be overcome just interested in others thoughts, perhaps there are one or two posters who have relevant experience...similar issues will be dealt with in Australia and all over the world, so nothing to be alarmed about but perhaps worth discussing or being aware of at least.
(20min delay)