THIS SHARE ACQUISITION & INVESTMENT AGREEMENT made the 30th day of September, 2009.
Exhibit
10.1
THIS SHARE ACQUISITION & INVESTMENT
AGREEMENT made the 30th day of September, 2009.
BETWEEN:
XXXX CREEK GOLD CORP., a
company incorporated under the laws of the State of Nevada and having an address
for notice and deliver located at 0000 Xxxxx Xxxxx, #000, Xxx Xxxxx, XX
00000.
(the
“Investor”)
OF
THE FIRST PART
AND:
ORION RESOURCES, N.V., a
company incorporated under the laws of Suriname and having an address for
delivery at Xxxxxxxxxxxxx #00, Xxxxxxxxxx, Xxxxxxxx XX.
(the
“Company”)
OF
THE SECOND PART
WHEREAS:
A.
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The
Company is a resource company, with a 100% interest in and to a resource
property, consisting of two exploration concessions consisting of 56,920
hectares (the “Property”), located in
east central Suriname, in the districts of Brokopondo and
Sipalilwini;
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B.
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The
Investor is a Nevada Company, and wishes to purchase one share in the
capital of the Company (the “Share”) for
USD$2,000,000, which will comprise 50% of the Company’s issued and
outstanding capital; and
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C.
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The
Company wishes to sell to the Investor and the Investor wishes to purchase
the Share from the Company, on the terms and conditions set out in this
Agreement.
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NOW
THEREFORE in consideration of the mutual covenants and agreements herein
contained, and for other good and valuable consideration (the receipt and
sufficiency of which are acknowledged by each party), the parties agree with one
another as follows:
1.
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INTERPRETATION
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1.1
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Where
used in this Agreement, each of the following words and terms have the
meanings ascribed to them below:
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(a)
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“Agreement” means this
share acquisition and investment agreement and all instruments
supplemental to or in amendment or confirmation of this agreement, and all
references to this Agreement will include all Schedules attached
hereto;
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(b)
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“Assets” means the
undertaking, property and assets of the Company as a going concern of
every kind and description, wheresoever
situated;
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1
(c)
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“Business” means the
business carried on by the Company, namely exploration of mineral
properties;
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(d)
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“Business Day” means any
day, other than a Saturday, Sunday or any other day on which the principal
chartered banks located in the City of Las Vegas, Nevada are not open for
business during normal banking
hours;
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(e)
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“Closing” means the
completion of the purchase and sale of the Share under this
Agreement;
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(f)
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“Closing Date” means
November 15, 2009 or such other date as agreed to by the parties to this
Agreement;
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(g)
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“Closing Time” means
10:00 a.m. (Nevada time) on the Closing Date or such other time on such
date as the parties may agree as the time at which the Closing will take
place;
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(h)
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“Company” means Orion
Resources, N.V., a company incorporated under the laws of
Suriname;
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(i)
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“Encumbrance” means any
lien, pledge, hypothecation, charge, mortgage, security interest,
encumbrance, claim, infringement, interference, option, right of first
refusal, pre-emptive right, community property interest or restriction of
any nature (including any restriction on the voting of any security, any
restriction on the receipt of any income derived from any asset, any
restriction on the use of any asset and any restriction on the possession,
exercise or transfer of any asset or other attribute of ownership of any
asset, except any such restrictions imposed by or required under
Applicable Securities Laws or other applicable laws and/or
regulations;
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(j)
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“Investor” means Xxxx
Creek Gold Corp., a company incorporated under the laws of the State of
Nevada;
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(k)
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“party” or “parties” and similar
expressions means a signatory to this Agreement, unless the context
otherwise requires;
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(l)
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“person” includes an
individual, corporation, partnership, joint venture, society, association,
trust, unincorporated organization, the Crown or any agency or
instrumentality thereof or any other juridical entity, or any trustee,
executor, administrator, or other legal
representative;
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1.2
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In
this Agreement, except as otherwise expressly
provided:
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(a)
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the
headings are for convenience only and do not form a part of this Agreement
and are not intended to interpret, define, or limit the scope, extent, or
intent of this Agreement or any of its
provisions;
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(b)
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the
singular of any term includes the plural, and vice versa, the use of any
term is equally applicable to any gender and, where applicable, a body
corporate, the word “or” is not exclusive
and the word “including” is not
limited (whether or not non-limited language, such as “without limitation” or
“but not limited
to” or words of similar import is used with reference to that
term);
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(c)
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any
reference to a statute includes and is a reference to that statute and to
the regulations made under that statute, with all amendments made to that
statute and in force from time to time, and to any statute or regulations
that may be passed that has the effect of supplementing or superseding
that statute or those regulations;
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2
(d)
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except
as otherwise provided, any dollar amount referred to in this Agreement is
in United States of America funds;
and
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(e)
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any
other term defined within the text of this Agreement has the meaning so
ascribed.
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1.3
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The
following are the Schedules to this
Agreement:
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Schedule
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Description
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A
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Major
Assets of the Company
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B
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Material
Contracts
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2.
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PURCHASE
AND SALE OF THE SHARE
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2.1
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Subject
to the terms and conditions set out in this Agreement, the Company agrees
to sell and the Investor agrees to purchase the Share free and clear of
all Encumbrances, by way of an issuance from the treasury of the
Company.
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3.
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CONSENT
& RIGHT OF FIRST REFUSAL OF
INVESTOR:
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3.1
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In
the event the Company proposes to offer for sale any securities of the
Company to any person, then the Company shall require the consent of the
Investor to such sale by providing the Investor with notice in writing
(the “Notice of
Sale”) of the Company’s intent to sell such
securities. The Notice of Sale shall set out the details as to
the type of securities, as well as the total number and price of the
securities being offered for sale. The Investor shall have 5
calendar days after the receipt of the Notice of Sale to exercise its ROFR
(as hereinafter defined). If the Investor has not exercised the
ROFR within 5 days of receiving the Notice of Sale, then the Company may
proceed with such sale.
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3.2
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In
the event the Company proposes to offer for sale any securities of the
Company to any person, and the Company has provided the Notice of Sale to
the Investor, then the Investor may at its option exercise the right to
purchase its pro
rata portion of such securities prior to the Company selling such
securities to any other person (the “ROFR”). For
purposes of this right of first refusal, the Investor’s pro rata right shall be
equal to the ratio of (a) the number of shares of the Company held by the
Investor immediately prior to the issuance of such securities to (b) the
total number of shares of Company outstanding immediately prior to the
issuance of such securities.
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3.3
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Where
the Investor wishes to exercise its ROFR, it shall do so by providing the
Company with a letter of subscription, setting out the number of
securities being purchased, accompanied by the aggregate price payable for
such purchase.
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3.4
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In
exercising its ROFR, the Investor may at its option, purchase less than
the full number of securities being offered for sale by the
Company. Any securities not subscribed for by the Investor, the
sale of which has not been objected to by the Investor, may be otherwise
sold by the Company.
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4.
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REPRESENTATIONS
AND WARRANTIES OF THE COMPANY
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4.1
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To
induce the Investor to enter into and consummate this Agreement, the
Company represents and warrants and covenants to the Investor as
follows:
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3
(a)
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the
Company is a corporation duly incorporated and validly existing under the
laws of Suriname and is in good standing regarding the filing of all
documents and the payment of all fees with the applicable corporate
registries of its jurisdiction, and the Company has the power, authority,
and capacity to enter into this Agreement and to carry out its
terms;
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(b)
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this
Agreement has been duly executed and delivered by the Company and is a
binding agreement of the Company, enforceable against it in accordance
with its terms and conditions, except that (i) the enforcement thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the rights of creditors generally, (ii) equitable
remedies, including, without limitation, specific performance and
injunction, may be granted only in the discretion of a court of competent
jurisdiction, and (iii) rights of indemnity, contribution and the waiver
of contribution provided for herein may be limited under applicable
law;
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(c)
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the
execution and delivery of this Agreement and the performance by the
Company of all of its obligations hereunder has been duly authorized by
all necessary corporate action required to be taken by it or on its
behalf, and no consents, approvals, waivers or authorizations are required
to be obtained by it to authorize or complete the transactions
contemplated herein;
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(d)
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the
Share, on issuance to the Investor, will be validly issued and outstanding
as a fully paid and non-assessable share of the Company, and will be free
and clear of all Encumbrances;
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(e)
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the
Company’s authorized capital consists of 1,000 shares without par value,
of which only one share is currently issued and outstanding, which share
is registered in the name of Xxxxxxx Exploration Inc., an Alberta
corporation;
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(f)
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the
Company is not a party to any agreements, debt instruments, or commitments
and neither the Company nor its Assets are subject to any charter, by-law
or other corporate restriction, nor any order or other restriction that
would:
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(i)
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prevent
the Company from entering into this Agreement or from completing the
transactions contemplated by this Agreement;
or
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(ii)
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materially
adversely affect the Business, the Assets, prospects, or condition,
financial or otherwise, of the Company or accelerate the due date for
payment of any of the Company’s
liabilities;
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(g)
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the
Company will not issue any shares, grant any options or warrants or
otherwise create any rights that are convertible into shares that will or
could result in more than one (1) share being issued prior to Closing
without the prior written consent of the
Investor;
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(h)
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the
Company does not have any subsidiaries or agreements of any nature to
acquire any subsidiary;
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(i)
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no
person has any written or oral agreement or option or right capable of
becoming an agreement:
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(i)
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to
require the Company to issue any securities or to convert or exchange any
securities into or for shares of the
Company;
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4
(ii)
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for
the purchase, subscription, allotment, or issuance of any of the unissued
shares or other securities of the Company;
or
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(iii)
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to
require the Company to purchase, redeem, or otherwise acquire any of the
Company’s issued and outstanding shares or other
securities;
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(j)
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from
the date of execution of this Agreement and until the Closing
Time:
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(i)
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there
will be no adverse material changes in the corporate or financial affairs
of the Company;
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(ii)
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the
Company will conduct the Business in the ordinary course;
and
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(iii)
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the
Company will not dispose of anything to a person with whom they are not
dealing at arm’s length for proceeds less than the fair market value of
the disposed object.
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(k)
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there
is no indebtedness other than trade debt, and the Company has not
guaranteed or agreed to guarantee any indebtedness of any
person;
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(l)
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neither
the shareholder of the Company, nor any officer, director, or employee of
the Company are indebted or under obligation to the Company on any
material account;
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(m)
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the
Company has not made, declared, or authorized any dividends or other
distribution on any of its shares;
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(n)
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the
Company owns and has good and marketable title to its Assets, free of all
Encumbrances or other defects in title, except as otherwise disclosed in
this Agreement;
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(o)
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the
Company has not altered its constating documents since incorporation,
except as disclosed in its minute books, and all alterations have been
approved and registered with the applicable corporate
registries;
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(p)
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there
is no basis for and there are no claims or other proceedings outstanding
or pending or, to the best of the Company’s knowledge, threatened against
or affecting the Company or any of the Assets at law or in equity or
before or by any government
authority;
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(q)
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to
the best of the Company’s knowledge, the Company is conducting and will
conduct its Business in compliance with all applicable laws, rules and
regulations of each jurisdiction in which its Business is or will be
carried on, and the Company is not in breach of any laws to which it is
subject or that apply to it;
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(r)
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the
Company has obtained all permits, certificates, registrations, and
licenses of government and administrative authorities required for the
operation of its Business as it is presently being conducted, and, to the
best of its knowledge, no violations of those permits, certificates,
registrations, and licenses have been recorded and no proceeding is
pending or threatened to revoke or limit any of
them;
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(s)
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to
the best of the Company’s knowledge, except as otherwise provided for in
this Agreement, no authorization or exemption by or filing with any
government, public, or self-regulatory authority is required in connection
with the Company’s signing, delivery, and performance of this Agreement or
any of the agreements referred to in this
Agreement;
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5
(t)
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the
Company has not experienced, nor is the Company aware of, any occurrence
that has had or might reasonably be expected to have a materially adverse
effect on the Business or the results of its
operations;
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(u)
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the
Company has promptly and properly recorded all of its material
transactions in its respective books and records and the minute books of
the Company contain complete and accurate records of all meetings and
proceedings of shareholders and
directors;
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(v)
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the
performance of this Agreement and the completion of the transactions
contemplated by this Agreement will not conflict with the Company’s
constating documents or, to the best of the Company’s knowledge, of any
agreement to which the Company or its shareholder is a party, and will not
give any person or company any right to terminate or cancel any agreement
or any right, license, or other benefit enjoyed by the Company, and will
not result in the creation or imposition of any Encumbrance in favour of a
third party on or against the
Assets;
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(w)
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the
only present directors and officers of the Company are as
follows:
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Name
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Position
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Xxx
Xx Xxxx
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Managing
Director
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(x)
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the
Company is not in material default or breach of any of its material
contracts and, to the Company’s knowledge, there exists no state of facts
which after notice or lapse of time or both would constitute such a
default or breach, and all material contracts are in good standing and the
Company is entitled to all benefits
thereunder;
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(y)
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to
the best of the Company’s knowledge, information, and belief, the Company
maintains the necessary policies of insurance to meet all applicable
requirements of law and such insurance will be continued in full force and
effect, and the Company is not in default with respect to any of the
provisions contained in any such insurance policy and has not failed to
give any notice or present any claim under any such insurance policy in
due and timely fashion;
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(z)
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the
Company has made full disclosure to the Investor of all aspects of the
Business and has made all of its books and records available to the
representatives of the Investor in order to assist the Investor in the
performance of its due diligence searches and no material facts in
relation to the Business have been concealed by the Company;
and
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(aa)
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to
the best of the Company’s knowledge, information and belief, all due
diligence material prepared by the Company and provided to the Investor
and its counsel is accurate in all
respects.
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4.2
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The
representations, warranties, covenants, and agreements of the Company
contained in this Agreement or in any documents delivered in connection
with the transactions contemplated hereby will be true at and as of the
Closing Time as though the Company made these representations and
warranties at and as of that time. Despite any investigations
the Investor may make before the signing of this Agreement or the
Investor’s waiver of any condition, the representations, warranties,
covenants, and agreements of the Company will survive the Closing and,
despite the purchase and sale provided for in this Agreement, will
continue in full force and effect. If any of these
representations and warranties are found to be incorrect or if there is a
breach by the Company of any of the covenants or agreements, which
incorrectness or breach will result in any loss or damage sustained
directly or indirectly by the Investor, then the Company will pay the
amount of the loss or damage to the Investor within 30 days of receiving
notice of the loss or damage.
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6
5.
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INVESTOR’S
REPRESENTATIONS AND WARRANTIES
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5.1
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To
induce Company to enter into and consummate this Agreement, the Investor
represents, warrants and covenants to the Company as
follows:
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(a)
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the
Investor is a corporation duly incorporated and validly existing under the
laws of Nevada, is in good standing regarding the filing of annual reports
at the office of the Registrar of Companies for Nevada, and has the power
and authority to enter into, deliver, and perform this Agreement and to
carry out its terms;
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(b)
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this
Agreement has been duly executed and delivered by the Investor and is a
binding agreement of the Investor, enforceable against it in accordance
with its terms and conditions, except that (i) the enforcement thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the rights of creditors generally, (ii) equitable
remedies, including, without limitation, specific performance and
injunction, may be granted only in the discretion of a court of competent
jurisdiction, and (iii) rights of indemnity, contribution and the waiver
of contribution provided for herein may be limited under applicable
law;
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(c)
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the
performance of this Agreement will not violate the applicable securities
laws to which the Investor is subject, or any agreement or other
instrument to which the Investor is a
party;
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(d)
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all
necessary corporate action on the Investor’s part will, at Closing,
validly authorize the signing, delivery, and performance of this Agreement
and the completion of the transactions contemplated by this
Agreement;
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(e)
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other
than for the approval of the directors of the Investor, no permit,
authorization or consent of any party is necessary for the consummation by
the Investor of the transactions contemplated in this Agreement;
and
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(f)
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the
Investor is not in default under, and there exists no event, condition or
occurrence which, after notice or lapse of time or both, would constitute
a default by the Investor under any contract, agreement or licence that is
material to the conduct of the business of the Investor to which it is a
party or by which it is bound that would, individually or in the
aggregate, have a material adverse effect on the
Investor.
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6.
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ACTS
IN CONTEMPLATION OF CLOSING
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6.1
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The
Company covenants and agrees with the Investor to ensure that prior to or
concurrently with Closing a meeting of the board of the Company will be
held at which time Xxxx Xxxxxxxxx, being the director nominee of the
Investor, will be appointed as a director of the
Company.
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7.
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CLOSING
MATTERS
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7.1
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The
Closing will take place at the Closing Time at such place as the Investor
may determine.
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7.2
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The
Investor’s obligation to complete the transactions contemplated by this
Agreement is subject to the conditions
that:
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7
(a)
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the
representations and warranties of the Company set out in sections 4.1 will
be true and correct in every particular as if the Company had made those
respective representations and warranties on the Closing Date;
and
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(b)
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the
Company will have delivered all documents to be delivered under section
7.3.
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The
conditions set out in this section 7.2 are for the Investor’s exclusive benefit
and the Investor may waive those conditions in writing in whole or in part on or
before the Closing Date, but save as so waived, the completion by the Investor
of the transactions contemplated by this Agreement will not prejudice or affect
in any way the Investor’s rights regarding the representations and warranties of
the Company and those representations and warranties will survive the Closing
Date for one year.
7.3
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On
the Closing Date, the Company will deliver to the Investor or as otherwise
directed by the Investor:
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(a)
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satisfactory
evidence representing the Share registered in the name of the
Investor;
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(b)
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a
certificate of an officer of the Company certifying the securities
register of the Company, as at the date of
Closing;
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(c)
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a
certificate of an officer of the Company confirming the accuracy of all
representations and warranties of the Company contained in section 4.1 and
the fulfillment of all covenants and conditions under this Agreement,
unless waived;
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(d)
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a
copy of the directors’ resolutions or directors’ minutes of the Company
appointing Xxxx Xxxxxxxxx as a director of the Company;
and
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(e)
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a
copy of the directors’ resolutions of the Company authorizing the Company
to enter into this Agreement and to carry out the transactions
contemplated herein including approving the issuance of the Share to the
Investor.
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7.4
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On
the Closing Date, the Investor will deliver to the Company or as otherwise
directed by the Company:
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(a)
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a
certificate of an officer of the Investor confirming the accuracy of all
representations and warranties of the Investor contained in section 5.1
and the fulfillment of all covenants and conditions under this Agreement,
unless waived;
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(b)
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a
copy of the directors’ resolutions of the Investor authorizing the
Investor to enter into this Agreement and to carry out the transactions
contemplated herein;
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(c)
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an
executed subscription agreement for the Share;
and
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(d)
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US$2,000,000
deposited into accounts as directed by the
Company.
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8.
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TRANSACTION
EXPENSES
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8.1
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Each
party to this Agreement will bear all costs and expenses incurred by it in
negotiating this Agreement and in closing and carrying out the
transactions contemplated hereby. Subject to the foregoing, all
costs and expenses related to satisfying any condition or fulfilling any
covenant contained in this Agreement will be borne by the party whose
responsibility it is to satisfy the condition or fulfil the covenant in
question.
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8
9.
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NOTICES
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9.1
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Any
notices to be given by either party to the other will be sufficiently
given if delivered personally or if sent by registered mail, postage
prepaid, to the parties at their respective addresses shown on the first
page of this Agreement, or to any other addresses as the parties may
notify to the other from time to time in writing, or if transmitted by
facsimile to such facsimile number, as the parties may notify the other
of, from time to time. This notice will be deemed to have been given
at the time of delivery, if delivered in person or transmitted by
facsimile, or within five Business Days from the date of posting if
mailed.
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10.
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GENERAL
|
10.1
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This
Agreement will enure to the benefit of and will be binding on the parties
and their respective heirs, executors, administrators, successors, and
assigns.
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10.2
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Time
will be of the essence of this
Agreement.
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10.3
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The
terms and provisions contained in this Agreement constitute the entire
agreement between the parties and supersede all previous oral or written
communications regarding the purchase and sale of the
Share.
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10.4
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If
any provision of this Agreement is determined to be void or unenforceable
in whole or in part, that provision will be deemed not to affect or impair
the validity of any other provision of this Agreement and the void or
unenforceable provision will be severable from this
Agreement.
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10.5
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The
parties may sign this Agreement in counterparts and these parts will
together form one original agreement. Parties may sign and
deliver this Agreement by facsimile and facsimile signatures are legally
binding on all parties.
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10.6
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Each
party shall, from time to time, and at all times hereafter, at the request
of the other of them, but without further consideration, do, or cause to
be done, all such other acts and execute and deliver, or cause to be
executed and delivered, all such further agreements, transfers,
assurances, instruments or documents as shall be reasonably required in
order to fully perform and carry out the terms and intent
hereof.
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[the
remainder of this page is intentionally left blank]
9
10.7
|
This
Agreement and the rights and obligations and relations of the parties will
be governed by and construed in accordance with the laws of the State of
Nevada. The parties agree that the courts of Nevada will have
the exclusive jurisdiction to entertain any action or other legal
proceedings based on any provisions of this Agreement. Each
party attorns to the exclusive jurisdiction of the courts of
Nevada.
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IN
WITNESS WHEREOF the parties have signed this Agreement as of the date written on
the first page of this Agreement.
XXXX
CREEK GOLD CORP.
/s/ Xxxx
Xxxxxxxxx
Authorized
Signatory
Xxxx
Xxxxxxxxx, Director and President
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ORION
RESOURCES, N.V.
/s/ Xxx
Xx
Xxxx
Authorized
Signatory
Xxx
Xx Xxxx, Managing Director
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10
Schedule
“A”
List
of all Major Assets of Orion Resources, N.V.
Company
owns or controls certain mining properties known as GMD-312/00 & GMD-313/00, located
in the districts of Brokopondo and Sipaliwini of Suriname.
A total
of 56,920 hectares located within the cross-hatched area. Map is for
reference only.
Schedule
“B”
List
of all Material Contracts of Orion Resources, N.V.
Property
License Agreements with the GMD.
11