[Rev. 11/21/2013 12:17:00 PM--2013]

CHAPTER 520 - MINING CORPORATIONS AND PARTNERSHIPS

MINING CORPORATIONS AND ASSOCIATIONS

Actions Against Minority Owners for Expenditures

NRS 520.010           Institution of action.

NRS 520.020           Determination of minority owner’s proportion of money expended or assumed indebtedness.

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

NRS 520.040           Specifications of summons.

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

NRS 520.060           Money expended or assumed indebtedness is lien against minority owner’s share; judgments and executions bind only defendant’s mining interest.

NRS 520.070           Sales of interests in mining claims under execution on judgment absolute; rights of purchasers.

 

Inspection of Mines by Stockholders

NRS 520.110           Right of stockholder to inspect company’s mines; issuance of order for inspection; duty of superintendent.

NRS 520.120           Registration of stockholder with county clerk or justice of the peace; fee for registration and administering oath.

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

NRS 520.140           Order for admission to mine.

NRS 520.150           Penalty for failure to comply with NRS 520.110.

MINING PARTNERSHIPS

NRS 520.160           Requisites generally.

NRS 520.170           Express agreement unnecessary; origin of relationship.

NRS 520.180           Sharing of profits and losses: Proportion.

NRS 520.190           Lien of members on property of partnership.

NRS 520.200           Title to mining ground worked.

NRS 520.210           Transfer of interests of members: Operation and effect.

NRS 520.220           Liability of purchaser of interest in mining ground.

NRS 520.230           Notice of existence of liens.

NRS 520.240           Authority of member to bind partnership.

NRS 520.250           Decision of majority is binding.

NRS 520.260           Formation of partnership under chapter 87, 87A or 88 of NRS.

_________

MINING CORPORATIONS AND ASSOCIATIONS

Actions Against Minority Owners for Expenditures

      NRS 520.010  Institution of action.  When three or more persons, owning or claiming as joint tenants, tenants in common or coparceners a majority of the number of feet, shares or interests in any mining claim in this State, shall have formed, or shall hereafter form themselves into a corporation or organized association for the purpose of working and developing such mining claim, and shall actually proceed to work and develop the same, such corporation or association may, without demand, except by commencement of an action, institute in any court of competent jurisdiction suit in its corporate or associate name, as upon an implied contract for the payment of money, against any 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 in common or coparcener, for his or her proportion of the money actually expended, or indebtedness assumed, by such corporation or association in the actual and necessary working and development of such mining claim.

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

      NRS 520.020  Determination of minority owner’s proportion of money expended or assumed indebtedness.  The proportion of money expended or indebtedness assumed by such corporation or association, and for the payment of which such joint tenant, tenant in common or coparcener is made liable under the provisions of NRS 520.010 to 520.070, inclusive, shall be deemed such an amount of money or indebtedness as bears the same proportion to the whole amount of money expended or indebtedness assumed as the interest in the mining claim owned or claimed by such joint tenant, tenant in common or coparcener bears to the whole of the mining claim.

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

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

      1.  In all cases the defendant, prior to the institution of suit under the provisions of NRS 520.010 to 520.070, inclusive, shall be entitled to 3 weeks’ notice of the intention of such corporation or association to institute such suit, which notice may be either served personally or by publication in some newspaper published in the county within which 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 adjoining county.

      2.  Any number of such joint tenants, tenants in common or coparceners may be joined as parties defendant in any suit instituted under the provisions of NRS 520.010 to 520.070, inclusive, but each defendant shall 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 may be determined by the same jury.

      3.  Judgment shall be rendered for or against each defendant separately, and the costs of suit may be apportioned among the several parties defendant, against whom judgment may be rendered, in such manner 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  Specifications of summons.  The summons shall specify:

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

      2.  The amount due from each joint tenant, tenant in common or coparcener as his or her 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 the county within which the mining claim is located.

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

      3.  All of the provisions of law and Nevada Rules of Civil Procedure regulating proceedings in other civil cases shall, so far as the 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  Money expended or assumed indebtedness is lien against minority owner’s share; judgments and executions bind only defendant’s mining interest.

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

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

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

      4.  All judgments rendered in any action instituted under the provisions of NRS 520.010 to 520.070, inclusive, and any execution issued thereon, shall bind and run against such interest, and no other property of 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  Sales of interests in mining claims under execution on judgment absolute; rights of purchasers.  All sales of any interest in a mining claim under an execution issued on a judgment obtained in any suit instituted under the provisions of NRS 520.010 to 520.070, inclusive, shall be absolute, and the purchaser shall be entitled to the immediate possession of the interest purchased at such sale.

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

Inspection of Mines by Stockholders

      NRS 520.110  Right of stockholder to inspect company’s mines; issuance of order for inspection; duty of superintendent.

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

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

      3.  The superintendent or other person or persons in charge of any incorporated mining claim or mining property in this State shall keep posted in some conspicuous place at or near the mine the day of the week in 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 to any such mining company.

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

      NRS 520.120  Registration of stockholder with county clerk or justice of the peace; fee for registration and administering oath.

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

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

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

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

      1.  Upon making application as provided in NRS 520.120 for the privilege of entering and examining any of the mining properties mentioned in NRS 520.110, the applicant must present to the county clerk or justice of the peace certificates of stock shares, or informational statements sent pursuant to NRS 78.235, indicating ownership of one-fifth of 1 percent of the original capital stock of the company whose mine or mining property the applicant desires to examine.

      2.  Thereupon, the applicant must make oath or affirmation that the stock certificates or informational statements presented by the applicant are currently accurate and are actually the applicant’s own property, or that the certificates of stock or informational statements at the time of presentation are currently accurate and really belong to the person or persons whom the applicant 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  Order for admission to mine.  Immediately upon complying with the provisions of NRS 520.130, the county clerk or justice of the peace shall furnish the applicant with a written order for admission to the mine and mining properties which the applicant may desire to examine.

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

      NRS 520.150  Penalty for failure to comply with NRS 520.110.  Any mining superintendent, mining foreman or mining secretary of any incorporated mining company in this state, acting under and for such mining company, who shall fail or refuse to comply with any of the conditions mentioned in NRS 520.110 shall for each such failure or refusal be guilty of a misdemeanor.

      [5:41:1877; BH § 288; RL § 2496; NCL § 4198]—(NRS A 1967, 607)

MINING PARTNERSHIPS

      NRS 520.160  Requisites generally.  A mining partnership exists when two or more persons who own or acquire a mining claim for the purpose of working it and extracting the mineral therefrom actually engage in working the claim.

      [1:155:1933; 1931 NCL § 5030]

      NRS 520.170  Express agreement unnecessary; origin of relationship.  An express agreement to become partners or to share the profits and losses of mining 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 and working it for the purpose of extracting the minerals therefrom.

      [2:155:1933; 1931 NCL § 5030.01]

      NRS 520.180  Sharing of profits and losses: Proportion.  A member of a mining partnership shares in the profits and losses thereof in the proportion which the interest or share the member owns in the mine bears to the whole partnership capital or whole number of shares.

      [3:155:1933; 1931 NCL § 5030.02]

      NRS 520.190  Lien of members on property of partnership.  Each member of a mining partnership has a lien on the partnership property for the debts due the creditors thereof, and for money advanced by the member for its use.

      [4:155:1933; 1931 NCL § 5030.03]

      NRS 520.200  Title to mining ground worked.  The mining ground owned and worked by partners in mining, whether purchased with partnership funds or not, is partnership property.

      [5:155:1933; 1931 NCL § 5030.04]

      NRS 520.210  Transfer of interests of members: Operation and effect.  One of the partners in a mining partnership may convey his or her interest in the mine and business without dissolving the partnership. The purchaser, from the date of the purchase, becomes a member of the partnership.

      [6:155:1933; 1931 NCL § 5030.05]

      NRS 520.220  Liability of purchaser of interest in mining ground.  A purchaser of an interest in the mining ground of a mining partnership takes it subject to the liens existing in favor of the partners for debts due all creditors thereof, or advances made for the benefit of the partnership, unless the purchaser purchased in good faith, for a valuable consideration, without notice of such lien.

      [7:155:1933; 1931 NCL § 5030.06]

      NRS 520.230  Notice of existence of liens.  A purchaser of the interest 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 to each other and to the creditors of the partnership.

      [8:155:1933; 1931 NCL § 5030.07]

      NRS 520.240  Authority of member to bind partnership.  No member of a mining partnership or other agent or manager thereof can, by a contract in writing, bind the partnership, except by express authority derived from the members thereof.

      [9:155:1933; 1931 NCL § 5030.08]

      NRS 520.250  Decision of majority is binding.  The decision of the members owning a majority of the shares or interest in a mining partnership binds it in the conduct of its business.

      [10:155:1933; 1931 NCL § 5030.09]

      NRS 520.260  Formation of partnership under chapter 87, 87A or 88 of NRS.  Nothing contained in NRS 520.160 to 520.250, inclusive, prevents persons described in NRS 520.160 from forming a partnership under chapter 87, 87A or 88 of NRS.

      [11:155:1933; 1931 NCL § 5030.10]—(NRS A 1985, 1296; 2007, 487)