22.1 The Company shall have an option to expand the Project Operations over the Additional Land which may be exercised as follows:

(a) No sooner than [insert number] [months]/[years] after the Effective Date, if the Company intends to exercise its option to expand the Project Operations over all or part of the Additional Land, it shall provide Notice in writing to the Grantor which shall include:

(i) a copy of the Project Map indicating the part or parts of the Additional Land which the Company wishes to put to use for the purposes of the Project;

(ii) a precise description of the use to which the Company wishes to put the Additional Land;

(iii) a written report of consultations which the Company has held with Legitimate Tenure Right Holders, Indigenous Peoples, and members of the Local Community in respect of the Additional Land, evidencing Free, Prior and Informed Consent of individuals and groups; and

(iv) a written report describing the progress of implementation of the Project and the status of any outstanding obligations or key milestones provided for in this Agreement and the Approved Business Plan.

(b) The Grantor shall provide a response to the Company within [insert number] days of the receipt of Notice which conforms to the requirements set out in paragraph (a) above.

(c) Where the Grantor approves the Company’s option to expand the Project Operations over the Additional Land, the Parties shall revise the Project Map and make any consequential variations to the terms of this Agreement in writing in accordance with Section 68.5, upon which the Additional Land shall be incorporated into the Project Area and subject to the terms of this Agreement.

(d) Where the Grantor does not approve the Company’s option to expand the Project Operations over the Additional Land or where the Company does not seek to exercise its option within [insert number] years from the Effective Date, the option shall be extinguished, and the Grantor may dispose of the Additional Land in accordance with the Applicable Law and subject to the rights of the Legitimate Tenure Rights Holders.

(e) Where the Company exercises its option to expand the Project over part of the Additional Land only, the Grantor may dispose of the remainder of the Additional Land in accordance with the Applicable Law and subject to the rights of the Legitimate Tenure Rights Holders.

For more information: See generally Szoke-Burke et al., 2018, Section 5 (Description and Demarcation of the Land Area Required); UNIDROIT & IFAD, 2021, Section 48 (Additional Land), 4.9 (Option Clause).