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Minerals exploration

To encourage exploration for domestic sources of minerals, the Office of Minerals Exploration ( OME ) of the U.S. Department of the Interior offers financial assistance to firms and individuals who desire to explore their properties or claims for 1 or more of the 32 mineral commodities listed in the OME regulations.

Requirements

This help is offered to applicants who ordinarily would not undertake the exploration under present conditions or circumstances at their sole expense and who are unable to obtain funds from commercial sources on reasonable terms.

Each applicant is required to own or have sufficient interest in the property to be explored.

The Government will contract with an eligible applicant to pay up to one-half of the cost of approved exploration work as it progresses.

The applicant pays the rest of the cost, but his own time spent on the work and charges for the use of equipment which he owns may be applied toward his share of the cost.

Repayment

Funds contributed by the Government are repaid by a royalty on production from the property.

If nothing is produced, there is no obligation to repay.

A 5-percent royalty is paid on any production during the period the contract is in effect ; ;

if the Government certifies that production may be possible from the property, the royalty obligation continues for the 10-year period usually specified in the contract or until the Government's contribution is repaid with interest.

The royalty applies to both principal and interest, but it never exceeds 5 percent.

Contact

Information, application forms, and assistance in filing may be obtained from the Office of Minerals Exploration, U.S. Department of the Interior, Washington 25, D.C., or from the appropriate regional office listed below.