Section 29, Cap 196

(l) The Governor may grant a mining lease to the holderof a prospecting right or of an exclusive prospecting licence who has by himself or his agent carried on bona fide prospecting operations on the area applied for, provided that in the latter case the mining lease applied for shall lie wholly within the boundaries of that licence, or to the holder of a mining right in respect of any portion of the area of his right, or, subject to the provisions of section 28, to any person in respect of any lands included in the area of a mining right which has been revoked under that section. (2) The holder of an exclusive prospecting licence or of a mining right who shall have fulfilled all the conditions attached thereto shall be entitled, subject to the provisions of this Ordinance, to the grant of a mining lease for any mineral for which he was authorised to prospect or mine, in respect of any portion of the area included in the licence or right: Provided that the Governor may, for any reason he may think proper, exclude from the operation of the lease any portion of the area for which the lease is applied for The grant of a mining lease. Applicant must show sufficient capital. (3) Application for a mining lease shall be made in such form as may be prescribed. (4) The Governor may offer and grant in such manner as he may think fit mining leases in respect of- (a) any mineral in respect of which a notice prohibiting prospecting has been issued under the proviso to section 9 ; (b) any area, not included in the area of an exclusive prospecting licence then in force, in which minerals in apparently payable quantities have been discovered or are known to exist, if no application for a mining lease in respect of such area has been made by a person to whom the lease could be granted under sub-section ( l) or sub-section (2); (c) any area in respect of which an application for a mining lease has been made, if the application has been refused or has been withdrawn; or (d) any area in respect of which a mining lease has been granted, if such lease has been forfeited or surrendered or has expired. (5) If application is received for the same area or for overlapping areas from two or more persons and there should arise any doubt as to which of them has priority for his claim, the decision of the Governor thereon shall be final unless the Governor shall direct that their claim shall be referred to arbitration: Provided that when an application has been made in respect of an area no application by another person covering the whole or part of such area shall be considered as being in dispute with the first application unless lodged with the Chief Inspector of Mines within a period of twenty-four hours of the receipt by such officer of the first application.