Checking a Nigerian mining title

A title review needs to establish the legal holder, the area, the current status and the activity being proposed. It should also explain how the seller or project partner is connected to those rights.

The Nigeria Mining Cadastre Office administers mineral titles in Nigeria. Use its official channels for title-status enquiries, supported by qualified Nigerian counsel and technical advisers. ^[1]

Identify the exact title

Request the complete title reference, holder’s legal name, title type, location information and the supporting documents relevant to the proposed activity. Avoid accepting a trading name as a substitute for the legal holder.

Ask an adviser to reconcile the coordinates, maps and site description. A familiar place name does not establish that the material or work being discussed lies within the relevant area. Record the source and date of every status check.

Verify status independently

Do not rely solely on a screenshot, a forwarded message or a verbal statement that a title is current. Use official confirmation channels and ask counsel what searches or confirmations are appropriate at the transaction date.

If the available records conflict, keep the issue open until it is resolved. A historical document and a current registry result may answer different questions. The review should explain what was confirmed, when it was confirmed and any remaining limitations.

Confirm the seller’s or partner’s authority

When the proposed counterparty is not the title holder, ask how its rights arise. Request the relevant authorisations or agreements and have their scope and execution reviewed. Access to a site is not the same as authority to grant investment rights or sell a particular lot.

Identify the legal entity that will make each contractual promise. If several entities are involved, map their roles. Do not assume an individual’s position in one company authorises that person to bind another.

Keep the title separate from the resource claim

A title does not establish a mineral reserve, production volume or project valuation. Those questions require their own technical evidence. JORC distinguishes public reporting of exploration results, resources and reserves; its classifications should not be casually borrowed to describe unverified claims. ^[2]

Ask what exploration or operating information exists, who prepared it and what independent work is needed. A promising site visit is not a substitute for a defensible technical assessment.

Review the wider permission and access picture

Ask local advisers to assess the environmental, land-access, community, operational and other requirements that apply to the intended work. A title review is one part of that exercise, not a blanket clearance to begin any activity.

Where a project involves an existing operation, investigate obligations already attached to it. The transaction structure should explain who assumes those obligations and how unresolved issues are treated before money is committed.

Keep a decision record

Create a short memorandum containing the checked title details, the relationship between the parties, the scope of the proposed activity, unresolved issues and the conditions for proceeding. Attach the evidence rather than repeating only the conclusions.

Where a material issue is unresolved, state the condition that must be met before proceeding. The note should be usable by someone who did not attend the site visit or initial meetings. It should also identify when a fresh status check will be needed.