COPY OF FINAL PROSPECTUS - Mirabela Nickel

and R$4.2 million, payable in installments. The last installment however is only payable if Mirabela Brazil
exercises the option thereunder to purchase the land. In addition, Mirabela Brazil paid R$90,000 under one of
the Land Purchase Agreements to extend the period in which the option to purchase may be exercised. To date,
an aggregate of R$3,310,940 has been paid under the Land Purchase Agreements, with a balance of R$392,760
remaining to be paid if the options are not exercised and, R$10,068,200 to be paid if the options to purchase are
exercised.
Unless extended by the parties, three of the options to purchase in the Land Purchase Agreements expire
24 months from the date of the agreement and one option expires within six months of the date of the
agreement. In the event that Mirabela Brazil abandons an option or fails to exercise an option within the
prescribed period, the relevant Land Purchase Agreement will automatically terminate and Mirabela Brazil will
be required to vacate the property within 30 days and complete an environmental clean-up of the property
within 180 days. In such instance, Mirabela Brazil will no longer have any rights to the land subject to such
agreement.
During the option period, Mirabela Brazil has the right of unrestricted and immediate access to the
property in order to carry out mineral research work, assessment and drilling. Each of the Land Purchase
Agreements provide that if Mirabela Brazil exercises its option to purchase the property, it must pay the
purchase price therefor (less the amount paid thereunder to date) and, upon the sale of any mining product, pay
the vendor such vendor’s pro rata share of a royalty equal to 1.0% of net revenues derived from the sale of
minerals extracted from such vendor’s property, less taxes, transportation and insurance costs. See ‘‘Royalties in
Respect of the Santa Rita Project — Royalty to Landowners’’.
Management believes that the Land Purchase Agreements provide the Company with sufficient surface
rights for all the land required in connection with the proposed mining operations including the land required
for potential tailings storage areas, potential waste disposal areas and potential processing plant sites, although
the location of any such areas has not yet been determined, pending completion of the BFS.
In addition, Brazilian mining law guarantees a concession holder access to the area of a mining concession.
Accordingly, to the extent Mirabela requires surface rights in excess of those granted by the Land Purchase
Agreements, Mirabela may exercise this ‘‘right of servitude’’ provided for under Brazilian mining law. This right
of servitude entitles a concession holder access to the area of a mining concession or adjacent land in exchange
for appropriate compensation for the servitude. A royalty may also be payable to the landowner if minerals are
ultimately extracted therefrom. Such royalty is prescribed by applicable law to be 50% of the Government
Royalty described below and each landowner is entitled to his or her pro rata share thereof based on the net
revenues derived from the sale of minerals extracted from each landowner’s property.
Licences and Approvals Related to the Santa Rita Project
Mining
As stated above, an exploration licence entitles a holder, to the exclusion of others, to explore for minerals
in the area of the licence but not to conduct commercial mining. Mining operations cannot commence until a
mining concession has been issued.
As also stated above, having had its final exploration report approved by the DNPM, Mirabela Brazil is now
entitled to, and is required under the terms of the Mining Agreement to, apply, on behalf of CBPM for a mining
concession in respect of the Santa Rita Deposit Mineral Right by, among other things, submitting a development
and mining plan to the DNPM. Upon issuance of the mining concession to CBPM, Mirabela Brazil will enter
into a Mining Lease with CBPM under which Mirabela Brazil will be entitled, on the terms and conditions of the
Mining Lease, to mine the area formerly covered by the Santa Rita Deposit Mineral Right. See ‘‘General
Business of the Company — The Company’s Interests in the Santa Rita Project — Mining Agreement’’.
Environmental
The environmental licensing process consists of three stages. First, a preliminary licence (a Licença de
Localização) must be obtained at the planning stage. Second, an installation licence (a Licença de Instalação) is
required prior to the commencement of construction and is a condition to the granting of a mining concession.
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