Title to Unpatented Mining Claims. Regarding the Claims which constitute a portion of the Property, except as otherwise set forth in the Title Reports and Opinions listed on Exhibit D, Mortgagor covenants, represents and warrants that: (a) to its knowledge, the Claims were properly located in accordance with applicable federal and state laws and regulations; (b) all assessment work requirements for the Claims have been performed and all filings and recordings of proof of performance have been made properly and all federal annual unpatented mining claim maintenance and rental fees have been paid properly and timely (in each case, save for where the non-compliance does not constitute, and could not reasonably be expected to constitute, a Material Adverse Effect); (c) the Claims are in good standing (save for where lack of good standing does not constitute, and could not reasonably be expected to constitute, a Material Adverse Effect), and Mortgagor owns its interest in the Claims, free and clear of all Encumbrances, subject only to the paramount title of the United States, Permitted Encumbrances, and the Encumbrances identified in Exhibit A; and (d) Mortgagor has good right and full power to assign, convey, grant and transfer the interests described in this Mortgage. Mortgagor makes no representation or warranty concerning the discovery or presence of valuable minerals on the Claims which comprise all or a portion of the Property, or as to the maintenance of pedis possessio rights with respect to any of the Claims or as to the nature or extent of its rights to use the surface of the Claims.
Title to Unpatented Mining Claims. Regarding the unpatented mining claims which constitute all or a portion of the Property, Trustor covenants, represents and warrants that: (a) the unpatented mining claims were properly located in accordance with applicable federal and state laws and regulations; (b) all assessment work requirements for the unpatented mining claims have been performed and all filings and recordings of proof of performance have been made properly and all federal annual unpatented mining claim maintenance and rental fees have been paid properly and timely; (c) the unpatented mining claims are in good standing, and Trustor has good title to and owns the entire undivided legal and equitable interest in the unpatented mining claims, subject to the paramount title of the United States and Permitted Encumbrances; (d) Trustor has good right and full power to assign, convey, grant and transfer the interests described in this Deed of Trust; and (e) the unpatented mining claims are free and clear of all damages, claims, encumbrances, liens, royalties and security interests, except the Permitted Encumbrances. Trustor makes no representation or warranty concerning the discovery or presence of valuable minerals on the unpatented mining claims which comprise all or a portion of the Property.
