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Cooperative Drilling round 2Invitation to Apply (ITA) for a grant

November 2015

NSW Department of Industry, Skills and Regional Development

© State of New South Wales 2015

Table of Contents

Overview of Cooperative Drilling round 2. 3

Preamble 3

Cooperative Drilling round 2 Application Form 5

Registration and Commercial Criteria 9

Terms and Conditions 11

NSW Department of Industry, Skills & Regional Development 2

Overview of Cooperative Drilling round 2.

Name of Program New Frontiers Cooperative Drilling

Government Agency NSW Department of Industry, Skills and Regional

Development (the Department)

Agency Branch Geological Survey of NSW

Opening Date

Closing Date and Time

16 November 2015

5pm AEST 29 April 2016

Address for Application submission Tender Box

NSW Department of Industry, Skills and Regional

Development

Attention: Michael Hallett

516 High St

Maitland NSW 2320

Electronic address [email protected]

Contact Officer Michael Hallett

Executive Officer

Geological Survey of NSW

Email: [email protected]

Preamble

NSW Department of Industry, Skills & Regional Development invites Applicants to submit an Application to

receive funding for the New Frontiers Cooperative Drilling program under this Invitation to Apply (ITA).

The ITA is comprised of the following parts:

Preamble


mailto:[email protected]


Application Form

Registration and Commercial Criteria of the Applicant

ITA Terms and Conditions

Declaration

Draft Funding Deed

Applicants should read the Guide for applicants to assist them in completing this application.

This Program, managed by NSW Department of Industry, Skills and Regional Development (the department) is

part of a New South Wales government initiative to attract further investment into NSW. The New Frontiers

Cooperative Drilling program will provide grants to successful Applicants for exploration drilling programs

(Group 1, 2, 6 and 10 minerals only) which demonstrate strong prospectivity, sound financial planning and a

proven technical base.

The NSW Government will oversee the investment of up to $2 million to encourage exploration

through the program, which is intended to support the long-term sustainability of the NSW resources

sector. The anticipated outcomes of the Program are as follows:

To encourage mineral exploration in New South Wales;

To create a working relationship between government and industry to carry out exploration drilling in

greenfields areas, drilling that tests new geological ideas and models and/or drilling in regions covered

by significant cover;

To stimulate exploration in greenfield areas and build a stronger relationship between government

and industry.

The Program will fund 50%, 75% or 100% of drilling metre rate costs for successful Applicants in relation to

individual projects, with a cap of $200,000 for each project. The total government allocation for Cooperative

Drilling will be $2 million in the 2016 – 2017 financial year. Drilling cost estimates from Applicants should be

GST exclusive.


Cooperative Drilling round 2 Application Form

(to be completed and returned by the Applicant. Applicants must complete all sections).

1 Company and Project Details

Company and Project Details Comments

Registered Tenement holder/Exploration

Operator (if different):

Name of Applicant:

Address & registered office of Applicant:

Applicant ABN:

Applicant point of contact & position title:

Contact telephone number(s):

Contact email address:

Drilling project or prospect name:

Location (distance and direction from nearest

town):

Tenement number on which the drilling is

proposed:

Exploration target

Commodity type


Project description

1.1 Provide a brief description of the geology and an overview of past exploration in the region of

your Application and the tenement (500 word maximum).

1.2 Outline the exploration program for the current term and how the proposed cooperative drilling

would form part of the program (500 word maximum).

2 Details of the proposed drilling program2.1 Please provide a work plan summary of the proposed cooperative drilling program (Maximum 100

words).

2.2 Has activity approval for the proposed cooperative program been given or applied for? (give

details, provide supporting documentation).

2.3 Does the Applicant have a history of compliance with the conditions of the relevant tenement

under which the proposed program will take place as well any other exploration tenements held

by the Applicant in the last 5 years in NSW (please provide details if necessary).

2.4 Has the Applicant been refused the grant or renewal of a title in NSW or been convicted for any

non-compliance with title conditions in the past 5 years? (If yes, please provide details).


2.5 Provide a project budget for the proposed drilling program. Include cost estimates for drilling and

associated on-costs.

2.6 What is the percentage of per metre drilling costs requested in this Application? 50%, 75% or

100%?

2.7 What is the dollar amount of funding being requested in this Application?

2.8 What is the amount of per metre drilling costs required to be funded, for project viability? 50%,

75% or 100%?


2.9. Drillhole details

Hole

name /

number

Coordinat

es

Azimut

h

Dip Collar

(RL)

Target

depth

(m)

Open

Hole

(m)

RC

(m)

Diamond

(m)

Other

(m)

Total

(m)

Proposed

Sample

Size/Weight

Will Core

be

acquired

?

Proposed

drilling start

date

Proposed

drilling

end date

Estimated

total direct

drilling costs

Amount of

funding

requested

Please include a plan diagram of the proposed drillholes showing location within the exploration licence area.


3 Technical assessment criteriaIn order to outline how the proposed program targets “new frontiers”, please describe:

3.1 How does your proposed program test sound geological models or innovative concepts and

ideas? (500 words maximum).

This question has a 30% weighting in the technical assessment.

3.2 How does your proposed program advance exploration in previously under-explored areas? For

example, does the program test an area previously untested, undrilled, under-drilled or where

previous work was ineffective? (500 words maximum).


3.3 How does the work you have undertaken to date to define the drill target(s) to be tested? (500

words maximum).

Attach an exploration rationale, including relevant plans, cross-sections, geophysical and

geochemical surveys that have led you to the proposed target.


3.4 Provide details of the proposed work program proposed to be carried out and the anticipated

information that will be acquired as part of the exploration program (e.g. Element suite to be

assayed, downhole geophysical methods, petrology, geochronology, isotopic analysis etc). (300

words maximum).



Registration and Commercial Criteria

4 Applicant Organisation TypePlease specify which type of organisation the Applicant falls within:

TICK IF RELEVANT

ORGANISATION TYPE

Incorporated Associations (incorporated under State/Territory legislation, commonly have 'Association' or 'Incorporated' or 'Inc' in its legal name)

Incorporated Cooperatives (also incorporated under State/Territory legislation, commonly have "Cooperative” in its legal name)

Companies (incorporated under the Corporations Act 2001 – may be not-for-profit or for-profit proprietary company or public companies limited by shares or by guarantee)

Partnerships

Trustee on behalf of a Trust

Unincorporated Joint Venture

Individual or individuals (jointly and separately)

Other (please specify)

5 Business Information5.1. The Applicant must provide the following information (including in relation to the lead agency

and each member of the consortia, if applicable):

(a) a brief outline of the Applicant’s current business including which business lines


account for the greatest proportion of the Applicant’s revenue;

(b) details about the Applicant’s operation in Australia including time established

locations facilities and resources; and

(c) shareholdings alliances partnerships and similar business relationships relevant

to the Application.

6 Financial Information6.1. The Applicant must provide the following information:

(a) most recent annual financial statements (including balance sheet and profit

and loss accounts) audited or certified as correct by the Applicant (Annual

Report will be sufficient);

(b) particulars of principal banker;

(c) particulars of any material threatened or pending litigation, claims or

undischarged judgments or orders;

(d) particulars of major debtors and creditors; and

(e) contingent liabilities; and

The Applicant authorises the Department to conduct a third party audit of financial information

provided by the Applicant at the department’s cost.

The Applicant authorises the Department to obtain a bank reference and will provide a formal authority

if requested by the department.

7 Statement of Non ComplianceIf the Applicant proposes to include any departures from or qualifications to the ITA, including

commercial or technical requirements and the Funding Agreement, all such departures or qualifications

must be fully documented in this Part.


REFERENCE

(Section and

Clause)

NON COMPLIANCE REASON FOR NON COMPLIANCE

8 Insurances8.1 The Applicant is to:

(a) attach to this section a copy of a certificate of currency from their insurance company, not their

broker, for each policy of insurance required under the Funding Deed (see Table below); or

(b) provide an undertaking that the policies specified in the Funding Deed, if not currently held) will

be taken out by the Applicant at no cost to the department, if the Applicant is successful in the

ITA.

8.2 If requested by the department, the Applicant must provide a full copy of each insurance policy

required under the Funding Deed.

8.3 An Applicant may be set aside by the Department from further evaluation without recourse

from the Applicant, if that Applicant is unable to satisfy the Department of its compliance with

the insurance requirements.

Types of Insurances required under

the Funding Deed

Minimum Sum Insured

Public Liability $10 million for any single occurrence and

unlimited in the aggregate as to the number of


occurrences.

Workers Compensation As required by the law of each relevant State

and Territory.

Comprehensive Motor Vehicle Comprehensive motor vehicle insurance if

company vehicles used.

Terms and Conditions

9 Background9.1. This Program, managed by NSW Department of Industry, Skills and Regional Development (the

department) is part of a New South Wales government initiative to attract further investment

into NSW. The New Frontiers Cooperative Drilling program (the program) will provide grants to

successful Applicants for exploration drilling programs (Group 1, 6 and 10 minerals only) which

demonstrate strong prospectivity, sound financial planning and a proven technical base.

9.2. The NSW Government will oversee the investment of up to $2 million to encourage exploration

through the program, which is intended to support the long-term sustainability of the NSW

resources sector. The anticipated outcomes of the Program are as follows:

To encourage mineral exploration in New South Wales;

To create a working relationship between government and industry to carry out exploration

drilling in greenfields areas, drilling that tests new geological ideas and models and/or drilling in

regions covered by significant cover;

To stimulate exploration in greenfield areas and build a stronger relationship between

government and industry.

9.3. The Program will fund 50%, 75% or 100% of drilling metre rate costs for successful Applicants in

relation to individual projects, with a cap of $200,000. The total government allocation for

Cooperative Drilling will be $2 million in the 2016 – 2017 financial year. Drilling cost estimates

from Applicants should be GST exclusive.

9.4. Cooperative Drilling round 2 funds will be granted at three levels.


Approximately $300,000–$400,000 will be distributed to projects to cover 100% of per metre drilling

costs.

$600,000–$700,000 will be distributed to projects to cover 75% of per metre drilling costs

The remaining funds (approximately $1M) will be granted to projects to cover 50% of per metre

drilling costs.

The maximum grant to any individual project will be $200 000

9.5. Funding will be limited to the direct costs of drill metre rates as charged by the drilling contractor as described in drilling contractor invoices, but excluding indirect costs such as mobilisation, travel costs, assay costs, drilling consumables and personnel costs;

9.6. Applications are encouraged from a wide range of companies. Applicants are not required to have had a prior funding relationship established with the Department, but must be a legal entity to be eligible for funding.

10 The Application10.1. Multiple applications from an Applicant will be accepted. The applications may relate to

different drilling projects within the same tenement or different drilling projects in other

tenements held by the Applicant.

10.2. In submitting an Application or Applications to this ITA, the Applicant must comply with the

terms set out in these Conditions and agrees that addressing the assessment criteria, does not

guarantee that funding will be provided.

10.3. The Applicant represents and warrants that:

(a) the Applicant submits its Application in good faith;

(b) no information provided by or on behalf of the Applicant to the Department is or will be false

or misleading;

(c) it has made all due enquiries in relation to the declaration of any conflicts of interest including

in relation any agency involved in a consortia arrangement, if applicable. The Applicant agrees

it will immediately inform the Department of it becoming aware of any actual or potential or

perceived conflict of interest; and


(d) it has declared any and all conflicts of interest in the Declaration (Section 28 – Registration)

and that no conflict of interest (actual, perceived or potential) exists at the date of submitting

its Application.

10.4. No agreement exists between the Department and any Applicant until and unless a funding

agreement is signed by the department.

11 Addenda11.1. The Department may amend the ITA at any time prior to the Closing Date and Time by issue of

an addendum, via the NSW Industry website.

11.2. No explanation or interpretation of the ITA may be relied upon by the Applicant as an

amendment to the ITA unless given in the form of addendum, in which case such addendum will

become part of the ITA. It is the Applicant’s responsibility to collect addenda from the NSW

Industry website. The Department accepts no responsibility if an Applicant fails to become

aware of any addendum released.

11.3. Following receipt of an Application form from an Applicant, addenda and responses to requests

for clarification issued in response to inquiries from any Applicant will be sent to all Applicants.

The Applicant must nominate a contact person for the purpose of providing addenda and

requests for clarification.

12 Cost12.1. All costs of responding to the Application, including responding to addenda notices and requests

for clarification, will be borne by the Applicant.

12.2. Under no circumstances will the Department be liable to pay any costs, expenses, loss or

damage accrued or sustained by an Applicant in connection with this process.

13 Indicative Timeframe13.1. These indicative Application milestones are not binding on the Department and may be subject

to amendment by the department:

Applications open 16 November 2015

ITA Closing Date and Time 5pm AEST Friday 29 April 2016


Application evaluation May-June 2016

Recommendations of Successful

Applicant(s) to Minister

30 June 2016

Funding Agreement signing July 2016

Grant works to begin after Date of signing of Funding Deed

Payments to Successful Applicants Upon completion of milestones set out in the Funding Deed, after receipt of Driller’s invoices, not later than midnight 30 June 2017.

Completion of project The funding agreement will provide that the work will be completed and the Department may grant an extension at its sole discretion.

14 Lodgement14.1. An Application must be submitted by the Closing Date and Time of 5pm AEST Friday 29 April

2016:

a) By post addressed to Tender Box, NSW Department of Industry, Skills and Regional

Development, 516 High Street Maitland NSW 2320 or;

b) via email at [email protected]

c) The Application is to be clearly marked “Application – New Frontiers Cooperative Drilling”

14.2. The Department will acknowledge successful receipt of applications.

14.3. Applications received through the post after the Closing Date and Time of 5pm AEST Friday 29

April 2016 will be deemed late unless the envelope bears a Postal Authority postmark clearly

indicating that the date of posting was prior to the stipulated Closing Date and Time. The imprint

of a privately operated franking machine is not an acceptable evidence of time and date of

posting.



14.4. Unless expressly requested or permitted by the department, Applications submitted by

facsimile, orally or for any other reason not in accordance with this clause will not be

considered.

14.5. If an Applicant wishes to lodge a correction or additional information following submission of an

Applicant, the correction or additional information must be submitted before the Closing Date

and Time. The Department may not consider any correction or additional information received

after the Closing Date and Time.

15 Funding Agreement15.1. Successful Applicants will be required to sign a Funding Deed with NSW Industry, Skills and

Regional Development, before receiving any funding.

15.2. The Funding Deed will provide a description of the activities to be provided in the project, based

on the Application and subsequent negotiation.

15.3. Applicants agree that if they are successful, some details of their project (including the prospect

description, their name and the amount of funding awarded) may be posted on NSW Industry

website as part of legislative reporting obligations. Prior to any publication, the Department will

refer to the Applicant for information that may be company in confidence.

16 Insurance 16.1. All Applicants should ensure that they have in place, or if successful are required to obtain,

sufficient insurance (the types and amounts of insurance as described in section 8) necessary to

cover all obligations in relation to the activity.

17 Assessment17.1. The Department will assess Applications received in order to determine which Applications, if any,

will be offered funding. Failure to meet the assessment criteria that are marked as mandatory

(sections 2, and 4 through 8) will result in excluding the Application from further assessment.

Assessment of technical criteria will be carried out using a weighted assessment scheme as part of

an Assessment Plan. The Assessment criteria are described in Sections 1 through 3.

17.2. Final scores resulting from the Assessment Committee will be used to determine ranking of

Applications.


17.3. The Department will assess Applications in accordance with this clause and based on the technical

response to the requirements of the Application, along with commercial risk and compliance. The

information used to assess the Application will include, but may not be limited to, the information

submitted by the Applicant in the Schedules. Consideration for successful Application may depend

on the Applicant’s previous degree of compliance with environmental and reporting conditions.

17.4. All Applications will be assessed to ensure that they deliver value for money against the objectives

and outcomes of the Program, including that they do not duplicate projects or activities funded

through other initiatives.

17.5. The assessment criteria include registration, technical and commercial criteria.The Department

reserves the right to review any Schedule or any part of the Application submitted.

17.6. The Department may engage external organisations or persons to assist with the evaluation of

Applications.

17.7. The decision of the Department on scoring, ranking and preferred applicants is final.

17.8. Drillholes in the project not described in the Application will not be eligible for funding.

18 Clarification18.1. If the assessment process identifies unintentional errors of form in an Application, the Applicant

may be contacted to correct or clarify the errors, but they will not be permitted to make any

material alteration or addition.

19 How to Apply for Funding19.1. The Applicant must submit its Application for funding by completing the following in English:

(a) all schedules in sections 1 through 3 and

(b) all registration information in sections 4 through 8Error: Reference source not found

19.2. The Declaration at section 28 must be signed by a person authorised to act on behalf of the

Applicant.

20 Applications from Consortia


20.1. If the Applicant submits a joint Application for funding or a consortia/collaboration, the

Application will need to include a letter of support from each additional organisation (apart from

the lead Applicant) involved in the project. Each letter of support should include:

a) an overview of how the organisation will work with the lead organisation and any other

organisation(s) to support the successful completion of the project and confirmation of

agreement to the lead organisation;

b) an outline of the relevant experience and/or expertise the organisation will bring to the project

team;

c) the roles/responsibilities the organisation will undertake, and the resources it will contribute (if

any);

d) details of a nominated management level contact officer; and

e) details of the lead organisation.

21 Taxation Implications21.1. Applicants are responsible for ensuring they comply with the appropriate taxation legislative

requirements.

21.2. Applicants are advised to seek independent advice from a taxation professional on how funding

may be paid to the Applicant if successful, (or to any entity proposed to establish to receive

funding) as to how the grant would be treated for tax purposes.

22 Contact Officer22.1. During the application process the Applicant may contact the Contact Officer via the email

address contained in the overview page of this document for clarification of the application

process.

22.2. All answers to clarification questions will be issued in writing to all Applicants. The identity of the

querying Applicant will not be disclosed to other Applicants.

22.3. All queries must be submitted by no later than 5 business days before the Closing Date and Time.

Any queries submitted later than 5 business days before the Closing Date and Time may not be

answered.


23 Probity Adviser23.1. A Probity Adviser has been assigned for this project.

23.2. Applicants can direct any probity queries to the Probity Adviser via the Contact Officer in writing.

24 Confidentiality24.1. The Applicant must identify any information in its Application which it considers to be

commercial-in-confidence by marking such information ‘commercial-in-confidence’. Such notation

will assist NSW Department of Industry, Skills & Regional Development in deciding which, if any,

information should not be disclosed but does not necessarily prevent disclosure. The Department

may request the Applicant to provide reasons why it considers the information to be commercial-

in-confidence.

24.2. Where information is not included in a publicly accessible register or published due to

commercial-in-confidence reasons then the Department may publish information regarding the

facts relating to the information withheld and the reasons for it.

24.3. The Department may publish the identities of all Applicants but will not publish other information

included in an unsuccessful Application.

24.4. The Applicant will keep confidential and will not disclose to any third party any information,

whether oral or recorded, including all drawings, specifications and other documents, provided to

or obtained by the Applicant concerning the Department or this Application, which is not in the

public domain (or which is in the public domain as a consequence of a breach of this provision).

24.5. The Applicant may, however, make disclosure to its employees, directors, officers, independent

consultants, subcontractors, agents, suppliers and professional advisors who have a need to know

the information for the purposes of preparing or submitting the Application provided that

Applicant ensures those persons are made aware of the confidential nature of the information

and procures an assurance that such information will be kept confidential. Without limitation the

Applicant will not in any way publicise commercial details of its Application or proposed

Application.

24.6. Applicants must not furnish any information, make any statements or issue any documents or

printed material about this ITA, its Application (or proposed Application) or any of the outcomes

of the ITA for publication in any media without the prior written approval of the department.


25 Intellectual Property25.1. The Applicant authorises the Department to use, retain and copy the information in the

Application for the purposes of:

(a) considering and assessing Applications; and

(b) subject to its Intellectual Property and confidentiality obligations, the development of any other

procurement process conducted by the department.

25.2. In addition to this clause, the Department may disclose all or part of the information discussed or

provided in the Application to a third party for the purposes of assisting the Department in the

conduct of the grants application process, including assessment, and negotiation of the resultant

Funding Agreement. The Department must obtain appropriate confidentiality undertakings from

the third party prior to disclosure.

25.3. Nothing in this clause affects the ownership of the Intellectual Property in the information

discussed or provided in the Application.

26 Ethical Behaviour26.1. NSW Department of Industry, Skills & Regional Development will exclude any Applicant that, in

the opinion of the department:

(a) engages in unethical, corrupt or inappropriate conduct;

(b) approaches NSW Industry, Skills & Regional Development personnel or members of the appointed

Assessment Panel in relation to the Application in a manner not consistent with the Application;

or

(c) displays intimidating behaviour.

26.2. If the Applicant suspects that any person has engaged in corrupt or unethical conduct, the

Applicant should notify the Probity Adviser in writing in accordance with clause 23.

26.3. If the Department suspects that an Applicant has engaged in corrupt or unethical conduct, the

Department will conduct an investigation and may refer the matter to the Independent

Commission Against Corruption.

27 NSW Department of Industry, Skills and Regional Development other rights


27.1. Notwithstanding any provision to the contrary in the Application, the Department may, without

providing reasons:

(a) reject or accept any Application;

(b) request further information from any Applicants;

(c) enter into negotiations with one or more Applicants in respect of the Funding Agreement, at any

time;

(d) seek clarification, verification and additional information from third parties (and the Applicant by

submitting its Application authorises the Department to do so);

(e) allow or not allow a related body corporate or other entity to take over an Application in

substitution of the original Applicant;

(f) shortlist any Applicants; and

(g) terminate the grants Applications process.

27.2. The Department may at any time during the assessment process, exclude an Application which:

(a) is substantially incomplete; or

(b) lacks substantiated evidence to support the Application.

28 Declaration

Guidance for completing this Declaration

This Declaration must be signed by an authorised representative of the Applicant (or, if this Application is a

joint/consortia Application, an authorised representative of the lead organisation). The authorised

representative should be a person who is legally empowered to enter into contracts and commitments on

behalf of the Applicant.

An Application which does not provide all required information or which contains false or misleading

information may be excluded from consideration.

28.1 The Applicant is to complete this Declaration as part of its Application.

28.2 To the best of the Applicant’s knowledge and belief, no family or other personal relationship

exists between:


(a) on the one hand, the Applicant or any employee of the Applicant directly or indirectly involved in

the preparation or submission of the Application; and

(b) on the other hand, any employee of the Department involved in evaluation of Applications or

administration of contracts or in possession of confidential information relating to the Application

or the Funding Agreement.

(c) If such a relationship does exist, the Applicant must provide in section 28 details as to the nature

and extent of the relationship or association

28.3 The Applicant has taken all due and reasonable steps to identify any potential, actual or perceived

conflict of interest:

(a) within its organisation and the entities comprising the consortia, if applicable; and

(b) any senior members, employees or officers of NSW Industry, Skills & Regional Development.

28.4 The Applicant has not engaged in any unethical behaviour or sought or obtained an unfair

advantage in obtaining business with the Department and will not do so in relation to this

Application.

28.5 Error: Reference source not found are cumulative and not exclusive of the rights, powers or

remedies provided by law to the Department independently of those clauses.

28.6 Unless stated otherwise, none of the Applicant’s or any member of the consortia employees have

been or is presently an employee of the department.

28.7 The Applicant must notify the Department in writing immediately if any provision of this section

28 becomes incorrect, with full details of the reasons.

28.8 All information submitted as part of this Application is complete, true and correct.

28.9 The following information is disclosed (if required):

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

Signature:


Name (BLOCK LETTERS):

Position of Applicant:

Date:

Checklist

Item Comments

1. Completed company and project details

2. Provided details of the drilling program, including plans and cross-sections

3. Thoroughly answered Technical criteria 3.1 – 3.4

4. Completed Organisation type

5. Attached Business information including supporting letters from consortia

(if required)

6. Attached financial information (annual statements, debtors & creditors etc)

7. Provide statements of non-compliance (if any)

8. Attached Public Liability Insurance, Workers Compensation Certificates

9. Read and understood the Terms & Conditions

10. Declaration signed

© State of New South Wales through the Department of Industry, Skills and Regional Development 2015. You may copy, distribute and otherwise freely deal with this publication for any purpose, provided that you attribute the NSW Department of Industry, Skills and Regional Development as the owner.

Disclaimer: The information contained in this publication is based on knowledge and understanding at the time of writing (May 2023). However, because of advances in knowledge, users are reminded of the need to ensure that information upon which they rely is up to date and to check currency of the information with the appropriate officer of the NSW Department of Industry, Skills and Regional Development or the user’s independent advisor.


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