If the individual prospector fails to achieve the goals of the mining exploration company, the mining exploration company can withdraw at any stage. The payment will not be returned, and the mineral rights will still belong to the individual prospector; upon expiration of the agreement, the individual prospector will transfer all the mineral rights to the mining industry Exploration Company. The growth of mineral exploration companies started as private companies, with private funds raised by company promoters and registered company operations. Private companies or junior mineral exploration companies first look for risky exploration projects. Private companies or junior mineral exploration companies conduct field surveys on exploration projects to evaluate the project's prospecting potential, especially a rough assessment of the project's economic value. Private companies or junior mineral exploration companies can obtain exploration rights directly through registration. More often, they jointly cooperate with other mineral rights holders in exploration and obtain the rights and interests of exploration projects.

Private companies or junior mineral exploration companies raising funds in the capital market for risky exploration projects must have the projects evaluated by independent exploration geologists. If junior mineral exploration companies want to go public to raise risk exploration funds, they can use various methods such as initial listing, shell listing or share expansion.

Junior mineral exploration companies invest the raised risk exploration funds into the implementation of exploration projects. Junior mineral exploration companies have fewer management levels, flexible decision-making, and are adaptable to risky mineral exploration. For example, Canada's SKN Company spent only four months in the Tobuka mining area in Yunnan from signing an agreement, conducting soil geochemical measurements, conducting large-scale geological mapping, determining hole locations, and launching three drilling rigs for verification. Since the success rate of mineral exploration projects is only about 1%, cooperative exploration generally takes the form of unincorporated cooperative enterprises. If the implementation of the exploration project is not ideal or other conditions change, junior mineral exploration companies will quickly withdraw and invest in the implementation of new exploration projects.

After a junior mineral exploration company finds a mine, it has several options: the junior mineral exploration company finances development by itself; the junior mineral exploration company sells all the projects to large mining companies; the junior mineral exploration company establishes a joint venture with a large mining company Joint ventures, cooperative development; the stocks of junior mineral exploration companies are acquired by large mining companies at high prices, which is an ideal choice for the operation of junior mineral exploration companies.

3.1.3 Government mineral resource exploration administrative functions

The government regulates the mineral exploration market in accordance with the law, which is an important guarantee for the healthy development of commercial mineral exploration. The key to effective government management of mineral exploration and development activities in a market economy is the management of exploration certificates. First of all, the government must grasp the qualifications of applicants for exploration certificates, that is, the technical and economic capabilities of the applicants. In Australia, companies applying for exploration licenses must attach proof of employment and employment of geological professionals and their qualifications and academic qualifications, funds on file in the bank and proof of assets of the company operator. Secondly, the issuance and management of exploration licenses mainly formulate and implement policies from six aspects: mineral type, area, time, minimum investment amount, work requirements and deposit.

Allowing the transfer of rights and interests in exploration certificates is an important regulation to ensure the rights and interests of explorers and encourage exploration investment. If part of the rights and interests in the exploration certificate are transferred abroad and other companies operate the exploration, the government will not intervene and does not require government approval, but it must be reported and filed. After that, the government still recognized the original holder of the exploration license and managed it in accordance with the law. If most of the rights and interests in the exploration certificate need to be renamed after the transfer, the government’s qualification review and recognition will be required. Although mineral exploration lands and resources are legally owned by the national government in terms of ownership, their rights and interests have become transferable transactions in the market economy. Therefore, the government does not interfere with the transfer of rights and interests in exploration certificates, but only reviews and recognizes the qualifications of the recipient.