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Confidentiality Agreements: its Validity and Enforceability Under Chilean Law

Cristian Quinzio S., Mineral Development in Latin America (1997)

Confidentiality information and protected areas of interest agreements can be traced back to the Anglo-Saxon Law, in particular the United States of America. These agreements are intended to protect the disclosure of mining information (geological, metallurgical, etc.) to third parties so that such third parties may ponder over the convenience of acquiring an interest on mining rights as a result of such information. The execution of this kind of agreements takes place prior to entering into a purchase agreement or a joint venture agreement relating to the mining rights actually held by the individual who obtained such mining information.

Specifically, confidentiality information agreements are intended to establish conventions offering protection to the delivery of mining information by those who have obtained it; to establish restrictions to its use; to prohibit any subsequent delivery of such information to third parties, and to establish procedures that would apply in the case of a breach of such obligations.

On the other side, the agreements on the creation of protected areas of interest seek to establish or define an area in respect of which the parties will agree that nobody who receives information will acquire any mining rights, surface rights, water rights or any other rights and, in the case of an infringement, impose on the offender the obligation