2005 Nevada Revised Statutes - Chapter 520 — Mining Corporations and Partnerships

CHAPTER 520 - MINING CORPORATIONS ANDPARTNERSHIPS

MINING CORPORATIONS AND ASSOCIATIONS

Actions Against Minority Owners for Expenditures

NRS 520.010 Institutionof action.

NRS 520.020 Determinationof minority owners proportion of money expended or assumed indebtedness.

NRS 520.030 Noticeof intention to institute action; joinder of defendants; judgment and costs.

NRS 520.040 Specificationsof summons.

NRS 520.050 Venue;service of process; applicability of Nevada Rules of Civil Procedure.

NRS 520.060 Moneyexpended or assumed indebtedness is lien against minority owners share;judgments and executions bind only defendants mining interest.

NRS 520.070 Salesof interests in mining claims under execution on judgment absolute; rights ofpurchasers.

Inspection of Mines by Stockholders

NRS 520.110 Rightof stockholder to inspect companys mines; issuance of order for inspection;duty of superintendent.

NRS 520.120 Registrationof stockholder with county clerk or justice of the peace; fee for registrationand administering oath.

NRS 520.130 Applicantto present stock certificates to county clerk or justice of the peace; oath ofapplicant.

NRS 520.140 Orderfor admission to mine.

NRS 520.150 Penaltyfor failure to comply with NRS 520.110.

MINING PARTNERSHIPS

NRS 520.160 Requisitesgenerally.

NRS 520.170 Expressagreement unnecessary; origin of relationship.

NRS 520.180 Sharingof profits and losses: Proportion.

NRS 520.190 Lienof members on property of partnership.

NRS 520.200 Titleto mining ground worked.

NRS 520.210 Transferof interests of members: Operation and effect.

NRS 520.220 Liabilityof purchaser of interest in mining ground.

NRS 520.230 Noticeof existence of liens.

NRS 520.240 Authorityof member to bind partnership.

NRS 520.250 Decisionof majority is binding.

NRS 520.260 Formationof partnership under chapter 87 or 88 of NRS.

_________

MINING CORPORATIONS AND ASSOCIATIONS

Actions Against Minority Owners for Expenditures

NRS 520.010 Institutionof action. When three or more persons, owningor claiming as joint tenants, tenants in common or coparceners a majority ofthe number of feet, shares or interests in any mining claim in this State,shall have formed, or shall hereafter form themselves into a corporation ororganized association for the purpose of working and developing such miningclaim, and shall actually proceed to work and develop the same, suchcorporation or association may, without demand, except by commencement of anaction, institute in any court of competent jurisdiction suit in its corporateor associate name, as upon an implied contract for the payment of money, againstany person not a stockholder in or a member of such corporation or association,owning or claiming to own in such mining claim as joint tenant, tenant incommon or coparcener, for his proportion of the money actually expended, orindebtedness assumed, by such corporation or association in the actual andnecessary working and development of such mining claim.

[1:73:1865; B 91; BH 247; C 263; RL 2476; NCL 4174]

NRS 520.020 Determinationof minority owners proportion of money expended or assumed indebtedness. The proportion of money expended or indebtedness assumedby such corporation or association, and for the payment of which such jointtenant, tenant in common or coparcener is made liable under the provisions of NRS 520.010 to 520.070, inclusive, shall be deemed such anamount of money or indebtedness as bears the same proportion to the wholeamount of money expended or indebtedness assumed as the interest in the miningclaim owned or claimed by such joint tenant, tenant in common or coparcenerbears to the whole of the mining claim.

[2:73:1865; B 92; BH 248; C 264; RL 2477; NCL 4175]

NRS 520.030 Noticeof intention to institute action; joinder of defendants; judgment and costs.

1. In all cases the defendant, prior to theinstitution of suit under the provisions of NRS520.010 to 520.070, inclusive, shallbe entitled to 3 weeks notice of the intention of such corporation orassociation to institute such suit, which notice may be either servedpersonally or by publication in some newspaper published in the county withinwhich such mining claim is located. If no newspaper is published in the county,then publication shall be made in a newspaper published in the nearest adjoiningcounty.

2. Any number of such joint tenants, tenants in commonor coparceners may be joined as parties defendant in any suit instituted underthe provisions of NRS 520.010 to 520.070, inclusive, but each defendantshall be entitled to plead separately. When the cause shall be tried by jury,as many of the separate issues of fact as may be agreed upon by the parties maybe determined by the same jury.

3. Judgment shall be rendered for or against eachdefendant separately, and the costs of suit may be apportioned among theseveral parties defendant, against whom judgment may be rendered, in suchmanner as to the court may appear just and equitable.

[3:73:1865; B 93; BH 249; C 265; RL 2478; NCL 4176]

NRS 520.040 Specificationsof summons. The summons shall specify:

1. The amount of money actually expended orindebtedness assumed by such corporation or association in the actual andnecessary working and development of the mining claim.

2. The amount due from each joint tenant, tenant incommon or coparcener as his proportion of such money or indebtedness.

[4:73:1865; B 94; BH 250; C 266; RL 2479; NCL 4177]

NRS 520.050 Venue;service of process; applicability of Nevada Rules of Civil Procedure.

1. All suits instituted under the provisions of NRS 520.010 to 520.070, inclusive, shall be brought in thecounty within which the mining claim is located.

2. Where the defendant is a nonresident of the countywithin which suit is brought, but a resident of the State, service of summonsmay be had personally, as in other cases, or by publication in the same manneras provided by Nevada Rules of Civil Procedure for service of summons bypublication where the defendant is a nonresident of the State.

3. All of the provisions of law and Nevada Rules ofCivil Procedure regulating proceedings in other civil cases shall, so far asthe same are applicable, apply to suits instituted under NRS 520.010 to 520.070, inclusive.

[5:73:1865; B 95; BH 251; C 267; RL 2480; NCL 4178]

NRS 520.060 Moneyexpended or assumed indebtedness is lien against minority owners share;judgments and executions bind only defendants mining interest.

1. The amount of money expended or indebtednessassumed by such corporation or association as the proportion due from suchjoint tenant, tenant in common or coparcener for the actual and necessaryworking and development of the mining claim shall be a lien in favor of suchcorporation or association upon the interest of such joint tenant, tenant incommon or coparcener in such mining claim from the time such money was expendedor indebtedness assumed by such corporation or association.

2. The lien shall bind such interest from the time ofsuch payment or assumption as against any subsequent purchaser, mortgagee orother person acquiring a lien upon, or title to, or interest in the same.

3. Suit may be instituted against the person owning orclaiming such interest at the time of the commencement of the action for therecovery of the whole amount due upon such interest.

4. All judgments rendered in any action institutedunder the provisions of NRS 520.010 to 520.070, inclusive, and any executionissued thereon, shall bind and run against such interest, and no other propertyof the defendant shall be subject to execution on the judgment.

[6:73:1865; B 96; BH 252; C 268; RL 2481; NCL 4179]

NRS 520.070 Salesof interests in mining claims under execution on judgment absolute; rights ofpurchasers. All sales of any interest in amining claim under an execution issued on a judgment obtained in any suitinstituted under the provisions of NRS520.010 to 520.070, inclusive, shallbe absolute, and the purchaser shall be entitled to the immediate possession ofthe interest purchased by him at such sale.

[7:73:1865; B 97; BH 253; C 269; RL 2482; NCL 4180]

Inspection of Mines by Stockholders

NRS 520.110 Rightof stockholder to inspect companys mines; issuance of order for inspection;duty of superintendent.

1. Any person who is the bona fide owner of stockshares representing the value of one-fifth of 1 percent of the original capitalstock of any company incorporated for the purpose of working upon and mining inany lode, ledge, deposit or bed of the precious metals or useful minerals inthis State, and any number of persons who are bona fide owners of an aggregatenumber of mining shares, amounting in value to one-fifth of 1 percent of suchcapital stock, at the time application for a permit to examine any such mineshall be made, may, upon a written order from the county clerk or from thejustice of the peace of the township in which such lode, ledge, deposit or bedis located, fully examine all of the shafts, adits, borings, drifts, stopes,hoisting apparatus, properties and appurtenances belonging to any such miningcompany.

2. Not more than one owner of such percentage oraggregate percentages of such mining stock, either in person or by anaccredited agent, is entitled to such written order for examination of anyspecified mine or mining property oftener than twice in 1 month; these daysshall, however, not be less than 14 days apart.

3. The superintendent or other person or persons incharge of any incorporated mining claim or mining property in this State shallkeep posted in some conspicuous place at or near the mine the day of the weekin which authorized stockholders may be admitted under the provisions of NRS 520.110 to 520.150, inclusive, and shall, on such day,admit any authorized stockholder to examine all of the shafts, adits, borings,drifts, stopes, hoisting apparatus, properties and appurtenances belonging toany such mining company.

[1:41:1877; A 1879, 57; BH 284; C 301; RL 2492;NCL 4194](NRS A 1959, 119)

NRS 520.120 Registrationof stockholder with county clerk or justice of the peace; fee for registrationand administering oath.

1. Each county clerk, or justice of the peace in eachof the townships, shall keep in his office a suitable book for registration, inwhich he shall enter the names of all persons who shall be entitled to theprivileges granted by NRS 520.110 to 520.150, inclusive.

2. The county clerks, or justices of the peace of theseveral townships, are authorized to administer an oath or affirmation to eachapplicant for such privileges. For administering such oath or affirmation andfor registering the name of the applicant, the county clerk or justice of thepeace shall receive a fee of $1, to be paid by the applicant at the time ofregistration.

[2:41:1877; BH 285; RL 2493; NCL 4195]

NRS 520.130 Applicantto present stock certificates to county clerk or justice of the peace; oath ofapplicant.

1. Upon making application as provided in NRS 520.120 for the privilege of enteringand examining any of the mining properties mentioned in NRS 520.110, the applicant must present tothe county clerk or justice of the peace certificates of stock shares, orinformational statements sent pursuant to NRS78.235, indicating ownership of one-fifth of 1 percent of the originalcapital stock of the company whose mine or mining property he desires toexamine.

2. Thereupon, the applicant must make oath oraffirmation that the stock certificates or informational statements presentedby him are currently accurate and are actually his own property, or that thecertificates of stock or informational statements at the time of presentationare currently accurate and really belong to the person or persons whom he is,under the provisions of NRS 520.110,authorized to represent.

[3:41:1877; A 1879, 57; BH 286; RL 2494; NCL 4196](NRS A 1987, 586)

NRS 520.140 Orderfor admission to mine. Immediately uponcomplying with the provisions of NRS 520.130,the county clerk or justice of the peace shall furnish the applicant with awritten order for admission to the mine and mining properties which he maydesire to examine.

[4:41:1877; A 1879, 57; BH 287; RL 2495; NCL 4197]

NRS 520.150 Penaltyfor failure to comply with NRS 520.110. Anymining superintendent, mining foreman or mining secretary of any incorporatedmining company in this state, acting under and for such mining company, whoshall fail or refuse to comply with any of the conditions mentioned in NRS 520.110 shall for each such failure orrefusal be guilty of a misdemeanor.

[5:41:1877; BH 288; RL 2496; NCL 4198](NRS A1967, 607)

MINING PARTNERSHIPS

NRS 520.160 Requisitesgenerally. A mining partnership exists whentwo or more persons who own or acquire a mining claim for the purpose ofworking it and extracting the mineral therefrom actually engage in working theclaim.

[1:155:1933; 1931 NCL 5030]

NRS 520.170 Expressagreement unnecessary; origin of relationship. Anexpress agreement to become partners or to share the profits and losses ofmining is not necessary to the formation or existence of a mining partnership.The relation arises from the ownership of shares or interests in the mine andworking it for the purpose of extracting the minerals therefrom.

[2:155:1933; 1931 NCL 5030.01]

NRS 520.180 Sharingof profits and losses: Proportion. A member ofa mining partnership shares in the profits and losses thereof in the proportionwhich the interest or share he owns in the mine bears to the whole partnershipcapital or whole number of shares.

[3:155:1933; 1931 NCL 5030.02]

NRS 520.190 Lienof members on property of partnership. Eachmember of a mining partnership has a lien on the partnership property for thedebts due the creditors thereof, and for money advanced by him for its use.

[4:155:1933; 1931 NCL 5030.03]

NRS 520.200 Titleto mining ground worked. The mining groundowned and worked by partners in mining, whether purchased with partnershipfunds or not, is partnership property.

[5:155:1933; 1931 NCL 5030.04]

NRS 520.210 Transferof interests of members: Operation and effect. Oneof the partners in a mining partnership may convey his interest in the mine andbusiness without dissolving the partnership. The purchaser, from the date ofhis purchase, becomes a member of the partnership.

[6:155:1933; 1931 NCL 5030.05]

NRS 520.220 Liabilityof purchaser of interest in mining ground. Apurchaser of an interest in the mining ground of a mining partnership takes itsubject to the liens existing in favor of the partners for debts due allcreditors thereof, or advances made for the benefit of the partnership, unlesshe purchased in good faith, for a valuable consideration, without notice ofsuch lien.

[7:155:1933; 1931 NCL 5030.06]

NRS 520.230 Noticeof existence of liens. A purchaser of theinterest of a partner in a mine, when the partnership is engaged in working it,takes with notice of all liens resulting from the relation of the partners toeach other and to the creditors of the partnership.

[8:155:1933; 1931 NCL 5030.07]

NRS 520.240 Authorityof member to bind partnership. No member of amining partnership or other agent or manager thereof can, by a contract inwriting, bind the partnership, except by express authority derived from themembers thereof.

[9:155:1933; 1931 NCL 5030.08]

NRS 520.250 Decisionof majority is binding. The decision of themembers owning a majority of the shares or interest in a mining partnershipbinds it in the conduct of its business.

[10:155:1933; 1931 NCL 5030.09]

NRS 520.260 Formationof partnership under chapter 87 or 88 of NRS. Nothingcontained in NRS 520.160 to 520.250, inclusive, prevents persons describedin NRS 520.160 from forming apartnership under either chapter 87 or chapter 88 of NRS.

[11:155:1933; 1931 NCL 5030.10](NRS A 1985, 1296)