Legal Dictionary of Pakistan

grubstake contract

A contract between two parties in which one party provides the grubstake - money and supplies - and the other party prospects for and locates mines on public land. a Each party acquires an interest in the mine as agreed to in the contract. Grubstake contracts are used chiefly in the western United States. In some states, such as Alaska, a request for grubstake money is considered the offer of a security and must be registered. - Also termed grubstaking contract.