grubstake contract

A contract between two parties in which one party provides the grubstake — money and supplies — and the other party prospects for and locates mines on public land.

• Each party acquires an interest in the mine as agreed to in the contract. Grubstake contracts are used chiefly in the western United States. In some states, such as Alaska, a request for grubstake money is considered the offer of a security and must be registered.

— Also termed grubstaking contract. [Cases: Mines and Minerals 101. C.J.S. Mines and Minerals §§ 396–401.]

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词条贡献者

双语律师郭敏，国际知名商学院金融专业，擅长翻译各类与金融衍生品与结构化产品相关的法律文件。