| (1) | Any 0P26 sublease in force immediately before this Act took effect continues in force subject to the terms and conditions under which it was granted until it is terminated or expires or until 30 June 2007, whichever is the sooner. |
| (2) | Any holder of a sublease contemplated in subitem (1) who wishes to convert the sublease into an exploration right in terms of this Act, must lodge such sublease for conversion at the office of the designated agency together with— |
| (b) | a sketch plan or diagram depicting the area for which the conversion is required, which area may not be larger than the area for which he or she holds the lease; |
| (c) | a statement setting out the period during which he or she conducted exploration operations before the date on which this Act took effect; |
| (d) | information as to whether or not the OP26 sublease is mortgaged or in any way encumbered by way of endorsement at the Title Deeds Office or the Mining Titles Office. |
| (e) | a statement setting out the terms and conditions which apply to the sublease; |
| (g) | an undertaking to the effect that, and a statement setting out the manner in which, the holder of the sublease will give effect to the object referred to in section 2(d) and 2(f); and |
| (h) | an affidavit verifying that the holder is conducting or has been conducting exploration operation on the area of land to which the conversion relates and setting out the periods during which such exploration operations were converted and the results thereof. |
| (3) | The Minister must convert the sublease if the holder— |
| (a) | has complied with the provisions of subitem (2); |
| (b) | is conducting exploration in respect of the sublease in question; |
| (c) | indicates that he or she will continue to conduct exploration operations upon the conversion of such right; and |
| (d) | has paid the prescribed conversion fee. |
| (4) | No terms and conditions applicable to the sublease remain in force if they are contrary to any provision of the Constitution or this Act. |
| (5) | The holder must lodge the right converted under subitem (3) within 90 days from the date on which he or she received notice of conversion at the Mineral and Petroleum Titles Registration Office for registration and simultaneously at the Deeds office or the Mineral and Petroleum Titles Registration Office for deregistration of the OP26 sub-lease as the case may be. |
[Item 4(5) of Schedule II substituted by section 80(a) of the Mineral and Petroleum Resources Development Amendment Act, 2008]
| (6) | The registration contemplated in subitem (5) must occur within six months from the date on which the sublease has been converted and must be done at the same time as the deregistration of the sublease at the Mineral and Petroleum Titles Registration Office. |
[Item 4(6) of Schedule II substituted by section 80(b) of the Mineral and Petroleum Resources Development Amendment Act, 2008]
| (7) | Upon the conversion of the lease and the registration of the production right into which it was converted, the lease ceases to exist. |
| (8) | If the holder fails to lodge the sublease for conversion before the expiry of the period referred to in subitem (1) the sublease ceases to exist |
