4. COMMENCEMENT DATE

This section indicates when the business and the provisions of this agreementAgreement: any explicit, signed document that is negotiated and includes mutual concessions or limitations placed on both sides. Examples are Negotiation Agreements, Exploration Cooperation Benefit Agreements, Socio-Economic Participation Agreements. will take effect.

The commencement date is usually some specific event that will trigger the business. If you are operating a catering contract for an exploration companyExploration Company: a company whose principal activity is that of exploration., you will want the business to start when exploration activities do. If your JV involves building roads and maintenance for a mine, things may gear up with the mine’s Construction StageConstruction Stage: the stage in which all facilities, buildings, roads etc. necessary for the operation of a mine are built..

Kitsaki's trucking JV had a couple of commencement dates. The first was ninety days after the start of negotiations. This was a pretty tight time frame. They eventually started even earlier under an additional agreement that remained in force until the Shareholder AgreementShareholder Agreement: a legally-binding document which describes the mutual obligations of the parties to a Joint Venture. was worked out six months later.