A heads of agreement for a mining farm-in arrangement may constitute a binding contract in the fourth Masters v Cameron category even where it contemplates a fuller agreement, provided the essential terms have been agreed and the parties intended to be immediately bound. The word 'agents' in s 85(1) of the Mining Act 1978 (WA) has an extended meaning encompassing persons authorised by the lessee, permitting the holder of a mining lease to authorise a third party to mine. An agreement conferring only contractual rights to earn an interest in base metals discovered does not confer a legal or equitable interest in or affecting an exploration licence contrary to s 64 of the Mining Act 1978 (WA). The dissent raises significant concerns about the enforceability of incomplete heads of agreement in complex mining ventures where critical matters such as title arrangements remain unresolved.
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