Exhibit 10.4
Agreement
Where as Xxxxxx X. Xxxxxxxx is in the process of completing the legal work
regarding the acquisition of approximately 1720 acres located in sections 3, 4,
5, 8 and 9, Township 3 South, Range 1 East GSRM, Maricopa County, Arizona.
Where as El Capitan Precious Metals is interested in acquiring the subject
property from Xxxxxxxx and Xxxxxxxx is desirous to sell the subject property the
parties hereby agree to the following terms and conditions.
1. That Xxxxxxxx shall be paid a royalty of $1.00 per ton for each ton of
iron ore shipped from the property. These royalty payments are due monthly.
2. That Xxxxxxxx shall also receive as payment for the minerals
shipped from the subject property 3% of the before taxes profit that El Capitan
receives from the sale, at market value, of the minerals from said property.
3. That El Capitan shall pay $100,000.00 to Xxxxxxxx upon the
completion of the permitting process required by the USBLM.
4. That on August 1, 2004 and every month thereafter
until the permitting process is completed Xxxxxxxx shall be paid $2500.00
monthly for managing the testing and further development of the property.
5. That both parties to this MEMORANDUM AGREEMENT
will formalize the above conditions into a more detail contract that outlines
all the specification generally found in a document of this import i.e.
accounting, legal issues be according to the law of Arizona, binding arbitration
procedures, agreement shall inure to the benefit of heirs, successors and
assigns and all other relevant conditions to protect the full interests of each
party.
THUS DONE READ AND SIGNED IN WITNESS WHEREOF the parties to this
Agreement on the 26 day of July 2004, do hereby agree to the terms set forth
above and have hereunto set their respective hands and seals.
El Capitan Precious Minerals, Inc.
s/Xxxxxxx X. Xxxxxxx s/ Xxxxxx X. Xxxxxxxx
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President Xxxxxx X. Xxxxxxxx
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Its Officer or Agent
