Schedule., The Diamond Agreements Shor: ti~Ie

Tms DEED made the twentieth day of October One thousand nine hundred and thirty-four between Thomas Nelson Goddard, M.B.E. Acting Governor of the Colony and Protectorate of Sierra Leone (hereinafter referred to as " the Governor ") acting for and on behalf of the Government of the said Colony and Protectorate (hereinafter referred to as " the Government ") of the one part and Sierra Leone Selection Trust Limited a Company incorporated in England under the Companies Act 1929 and having their registered office at Selection Trust Building Mason's Avenue Coleman Street in the City of London (hereinafter referred to as " the Company " which expression shall include their permitted assigns) of the other part. WITNESSETH and it is hereby agreed and declared as follows- 1. In this Deed the following expressions shall have the following Definitions. meanings- Expression. " The Governor " " The Crown Agents " " The Colony " " The area comprised m the Licence." " The Minerals Ordinance, 1927." Meaning. The Governor for the time being of the Colony and Protectorate of Sierra Leone. The Crown Agents for the Colonies for the time being. The Colony and Protectorate of Sierra Leone. The whole of the Colony with the exception of the areas comprised in the concessions known as the Marampa Concession and in the Tonkolili Agreement already granted or under negotiation for granting to the Sierra Leone Development Company Limited. The Ordinance passed in that year by the Legislative Council of the Colony regulating the working of minerals and all amending Ordinances. Cap. 196. " Mining Benefits Trust Fund " The fund to be established and administered in accordance with the provisions of Sierra Leone Ordinance No. 18 of 1932. Cap. 201. 2. (1) The Governor hereby grants to the Company for the term of ninety-nine years from the first day of July One thousand nine hundred and thirty-three (determinable as hereinafter provided) a sole and exclusive licence to explore for exploit produce take dispose of and market diamond throughout the area comprised in the Licence. (2) If in the opinion of the Company (which shall for this purpose be conclusive) the Licence cannot be worked or has ceased to be workable at a profit for any reason beyond the control of the Company and of the Government and the Company shall give to the Governor not less than twelve months' notice in writing expiring on any first day of July during S.L.-VoL. IV-15* Grant of Licence for 99 years. Power for Company to determine licen<'e if not workable at a profit. Yearly rent of£7,000 payable by the Company. the said term of the desire of the Company to determine this Licence then and in such case immediately after the expiration of such notice this Licence and everything herein contained shall cease and be void but without prejudice to any claim by the Governor in respect of any antecedent breach of any of the obligations hereby imposed on the Company. 3. (1) In consideratioa of the grant of this Licence to the Company the Company shall pay to the Government the yearly rent or sum of Seven Thousand Pounds payable by equal half-yearly payments on the first day of January and the first day of July in each year the next payment to be made as on the first day of January One thousand nine hundred and thirty-five and to be a full half-year's payment. (2) The said yearly rent or sum of Seven Thousand Pounds shall be treated as constituting moneys subject to the trusts of the Mining Benefits Trust Fund and shall be applied accordingly. Exemption of 4. Except and subject as provided by Clause 3 the Company shall at the Company all times during the continuance of this Licence be exempt in respect of from other mineral rents, their operations in connection with the production and disposal of diamond taxes, and from all rents taxes royalties export duties charges or impositions whatsoever charges with in respect of minerals or profits which might otherwiae be imposed upon or certain become payable by the Company with the following exceptionsexceptions. Surface rights. * Production and sale of output. No agreement to be entered into for control :Jf output or restriction of marketing. (1) Such tax as the Government may impose on profits of the diamond industry not exceeding twenty-seven and one-half per centum of the net profit of the Company ascertained in accordance with the Schedule hereto. (2) Surface rents and compensation payable to Tribal Authorities and other persons under the Minerals Ordinance 1927 and any amendments thereto for the time being in force. 5. (1) The rights and obligations of the Company over the surface of the area comprised in the Licence shall be those prescribed by the provisions of the Minerals Ordinance 1927 and the rules thereunder. (2) The Governor shall not in exercise of the powers conferred on him by Section 30 of the Minerals Ordinance 1927 impose any restriction limiting the exercise of such rights without the consent of. the Company such consent not to be unreasonably withheld. 6. The Company shall be at liberty to produce and sell their diamond output as they shall deem fit but the Company shall commence their operations forthwith and shall during the continuance of this Licence use their best endeavours to work the diamond deposits to the highest economic advantage and to sell as large an amount in value of diamond as they may be able to do having regard to the conditions of the market from time to time. 7. The Company shall not without the sanction of the Governor or Crown Agents on his behalf enter into any agreement for the control of output or restriction of marketing of diamond produced under this Licence or dispose of any interest in this Licence to any other person or persons or Corporation as a consequence of which any restrictions of production or interference with the local diamond industry may or could be brought about. * Now section 33. 8. The Company shall not employ any person or persons for the purpose of prospecting for diamond in the area comprised in the Licence or any part or parts thereof unless and until the Governor or some officer of the Government appointed by the Governor for that purpose shall have signified in writing his approval of such person. 9. (1) The Company shall at the end of each of its financial years during the continuance of this Licence set aside and transfer to general reserve an amount equal to five per centum of the profit for that year ascertained on the basis set out in paragraph (a) of the said Schedule hereto. (2) Such reserve shall not exceed Two Hundred Thousand Pounds in value in cash and securities. (3) Such reserve may be utilised for- (a) The extension of the Company's operations in the area comprised in this Licence in lieu of raising new capital. (b) Replacement of plant. (c) Meeting contingencies. (d) Equalisation of dividends. (e) Such other purposes as in the opinion of the Board of Directors shall be conducive to the Company's business in the said area. (4) Such reserve shall to the extent to which it is not from time to time required for the purposes set out in sub-clause (3) of this Clause be held in cash or invested in the government securities of the United Kingdom of Great Britain and Northern Ireland or in the securities of any British colony or dependency including in those expressions India and any British dominion commonwealth or union or any province or state of any such dominion commonwealth or union but not in any other security. (5) Such reserve shall not be used for mining business or operations outside the area comprised in this Licence. 10. (1) The Company shall at all times during the continuance of this Licence keep at their registered or other office approved by the Governor or by the Crown Agents on his behalf all usual and proper books of account relating to their operations under this Licence showing the capital expenditure for the time being upon or in connection with the area comprised in the Licence and also all receipts and expenditure on account of revenue in connection with the said area which books of account shall be open at all reasonable times for the inspection of the duly appointed agents of the Governor. (2) The Company shall appoint some chartered accountant or firm of chartered accountants approved by the Governor or by the Crown Agents on his behalf or in default of agreement to be nominated by the President for the time being of the Institute of Chartered Accountants in London to act as auditor. (3) Such auditor shall not less than once in every year during the continuance of the Licence audit the Company's accounts and prepare and certify a proper balance sheet and profit and loss account and a copy of each such balance sheet and profit and loss account so certified shall forthwith be furnished to the Crown Agents. Prospectors to be approved by Governor. General reserve. Books and accounts. Licence limited to production of Diamond. Any discovery of other metals etc. to be communicated. Company not to be precluded from mining other minerals under licence to be granted hereafter. Prospectuses and advertisements inviting subscriptions to capital to be submitted for approval. 85 per cent of supplies to be of British manufacture. Licence not to be assigned.