Exhibit 10.2 Letter Agreement for lease
XXXXXX X. XXXXXXXXX
MINING GEOLOGIST
0000 XXXXXXXXXXX XX. XXXX, XX 00000
TELEPHONE (000) 000-0000 XXXXXXXXXX@XXX.XXX
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November 30, 2000
Xx. Xxxx Xxxxxx
Foothills Resources Inc.
0 Xxxxxxx Xxxxx
Xxxxxx Xxxxxx XX00 0XX
Xxxxxxx
RE: LETTER AGREEMENT, GOLDEN CROSS PROPERTY, WHITE PINE COUNTY, NEVADA.
UNPATENTED MINING CLAIMS: TC 36-40. BLM XXX #000000 - 000000.
Dear Xx. Xxxxxx:
The following sets out the general terms and conditions for the agreement
between Xxxx Xxxxx and Xxxxxx Xxxxxxxxx (HD) and Foothills Resources Inc.
(Foothills) governing HD's Golden Cross property, White Pine County, Nevada, U.
S. A.
Form of Agreement Mining Lease
Term 20 years with automatic extensions
so long as conditions of the lease
are met.
Production Royalties 3.0% Net Smelter Return
Advance Royalties Upon Execution US $ 5,000.00
1st Anniversary US $ 7,500.00
2nd Anniversary US$10,000.00
3rd Anniversary US$20,000.00
4th Anniversary & thereafter US$50,000.00
Adjusted to annual changes in the
consumer price index (CPI) with 2000
as the base year. CPI payments apply
to payments beginning with the 4th
anniversary.
Performance Requirements Federal and state
mining claim maintenance fees for
any year in which this agreement is
maintained in good standing after
June 1.
Reclamation Foothill shall perform reclamation
work on the Property as required by
Federal, State, and Local law for
disturbances resulting from
Foothill's activities on the
Property.
Assignment Freely by either party so long as
Assignee accepts terms and
conditions of the Lease in writing.
Interest Area One mile from the outside
perimeter of the TC claim boundary
for new claims located either by HD
or by Foothills.
If the above terms and conditions are consistent with our earlier discussions,
please acknowledge by signing in the space provided below and return one copy.
This will serve to bind HD and Foothills while a formal and comprehensive
agreement, incorporating these general terms, is prepared.
Very truly yours,
/s/ Xxxxxx X. Eliopulus
Xxxxxx X. Xxxxxxxxx
Agreed and accepted to this 15th day of December, 2000.
/s/ J. Xxxx Xxxxxx
J. Xxxx Xxxxxx
