Cancellation of claim

(1) Where the holder of a claim– (a) fails to use, in good faith, the land in the claim area for mining operations; (b) uses the land in the claim area for any purpose other than mining operations; (c) fails to comply with any requirement of this Act (not being exempted from doing so) with which he is bound to comply; (d) fails to comply with a condition of the claim (not being exempted from doing so); 75 (e) fails to comply with a direction lawfully given under this Act or with a condition on which any exemption or consent is given; or (f) fails to pay any amount payable under this Act by him within one month after the amount becomes payable, the Inspector may, on that ground, by notice in writing served on the holder of the claim, cancel the claim. (2) The Inspector may, by notice in writing served on the holder of a claim, cancel the claim– (a) if the holder (being an individual) is– (i) adjudged bankrupt; or (ii) enters into an agreement or scheme of composition with his creditors or takes advantage of any law for the benefit of debtors; or (b) if, in the case of a holder that is a company or a corporation, an order is made or a resolution is passed winding up the affairs of the company or corporation unless the winding up is for amalgamation or reconstruction and the Inspector has been given notice thereof. (3) On the cancellation of a claim, the rights of the holder of the claim thereunder cease, but the cancellation does not affect any liability incurred before the cancellation and any legal proceedings that might have been commenced or continued against the former holder of the claim may be commenced or continued against him. (4) Where the Inspector has cancelled a claim under sub- sections (1) and (2), the person who was the holder of the claim 76 may appeal against the cancellation to the Minister whose decision shall be final.