OPTION TO LEASE OR PURCHASE AGREEMENT
WITH EXPLORATION RIGHTS
This Agreement ("Agreement") is entered into effective as of the 26th
day of November, 1993, between XXXXXX XXXXXXX, ("Owner") whose address is 000
Xxxxxxx Xxxx Xxxxx, Xxx Xxxx, XX 00000 and THE HANOVER GROUP, INC., a New
York corporation ("Hanover"), whose address is P. 0. Xxx X, Xxxxxx, Xxx Xxxx,
00000 in consideration of the payments to be made pursuant to, the mutual
covenants contained in, and the mutual benefits to be derived from this
Agreement.
I. OPTION TO LEASE OR PURCHASE AND EXPLORATION RIGHTS
1.1 Grant of Option. Owner grants to Hanover the exclusive and
irrevocable option to lease or purchase (the "Option") the surface of and all
minerals in, on and under the Property on the terms and conditions of this
Agreement. As used in this Agreement, the term "Property" shall mean the
unpatented lode mining claims described In Schedule A, attached to and by
this reference incorporated into this Agreement, together with all minerals
locatable under the mining laws of the United States in, on and under that
Property. The period of the Option shall be from the date of this Agreement
until September 15th, 1996 (the "Option Period"), unless extended pursuant to
Article VII below or sooner terminated pursuant to Article VI below.
1.2 Grant of Exploration Rights. Owner grants Hanover the full right
and authority, during the Option Period, to enter upon the Property to conduct
such exploration and prospecting operations as Hanover may deem appropriate to
determine the presence, location, quantity and value of minerals contained in
the Property. Such operations, which shall be a planned exploration program
approved and permitted by the appropriate government agencies, may included, but
shall not be limited to, mapping, sampling, including bulk sampling, trenching,
drilling, testings, assaying, conducting environmental studies and other
geochemical and geophysical exploration methods whether now known or in the
future developed. Hanover may establish drill sites and construct such roads as
may be necessary to the conduct of the foregoing activities. Hanover also may
mine and remove such amount of minerals as Hanover may deem appropriate for
sampling, assaying, metaLlurgical testing and evaluation of the Property Without
exercising the Option, however, minerals may not be removed for sale. In
addition, Hanover shall have the right (a) to use all easements and all
rights--of--way for ingress and egress to and from the Property to which Owner
may be entitled; (b) to obtain all permits, approvals and other federal, state
and local governmental authorizations as Hanover deems necessary to conduct its
mineral exploration activities; (C) to exercise all other rights that are or may
be Incidental to any or all of the rights granted, expressly or implicitly, to
Hanover in this Agreement; and (d) to the extent Owner possesses the title and
authority to grant it, to possess and use all or any part of the Property
together with all easements to, across and through the Property, for the purpose
of exploring any adjoining or nearby property owned, controlled or operated by
Hanover.
1.3 Data File. Owner will deliver to Hanover all data and information
in Owner's possession pertaining to the Property, including but not limited
to maps, engineering, assays, geochemical, geophysical, drill cores, samples,
annual assessment reports, United States Geological Reports and such other
information which would be beneficial to Hanover in its exploration and
mining activities on the Property.
1.4 Option Payment. Owner hereby acknowledges she has received the
sum of Three Thousand Six Hundred Dollars ($3,600.00) from Hanover for the
option to lease and exploration rights, as specified in this Agreement.
Hanover is entitled to be reimbursed this amount if the Agreement is
terminated pursuant to Section 6.2 below.
II. EXERCISE OF OPTION
2.1 Exercise of Option. Hanover may exercise the Option with respect
to the Property at any time prior to expiration of the Option Period, by notice
to Owner, specifying whether Hanover elects to lease or to purchase the
property, utilizing any method of communication that will provide an accurate
record of its dispatch. The time of dispatch will control. Upon exercise of the
Option, Owner shall not be required to reimburse Hanover the Option Payment
amount.
2.2 Mining Rights and Access. To the extent Owner is legally entitled
to so grant the same, Owner hereby grants Hanover the free, exclusive,
unrestricted right of access, ingress and egress to the Property and the right
to enter upon and occupy the Property for all purposes incident to exploring
for, developing, mining (by underground mining, surface mining, strip mining or
any other surface or subsurface method, including any method later developed),
extracting, milling, stockpiling, storing, processing, removing and marketing
therefrom all locatable ores, metals, minerals, mineral products and other
materials or substances (the "Products") and the right to place, construct,
maintain, use and thereafter remove such structures, facilities, equipment,
roadways, haulageways and other improvements as may be necessary, useful or
convenient for the full enjoyment of all of the rights granted under this
Agreement.
These rights are created and may be utilized for the purpose or in the course of
carrying on exploration, mining, milling, concentrating or refining operations
on any other properties in which Hanover may have or acquire any right and/or
interest and may desire to reach or mine directly or indirectly through the
Property, including the right, if it so desires, to mine and remove any Products
existing on or under the Property through or by means of shafts, openings or
pits which may be sunk or made upon adjoining and nearby property, and the right
to stockpile any Products from the Property upon grounds situated upon such
properties. In addition, and to the extent Owner is legally entitled to grant
such uses, Hanover may use the Property for any shafts, openings, pits and
stockpile--grounds sunk or made for the exploration, mining, milling,
concentrating, refining, removal and/or stockpile of any Products from any
adjoining or nearby property.
2.3 Commingling. After ore removed from the Property has been sampled
and weighed in such manner as will permit the computation of royalty to be paid
hereunder, Owner shall have the right to commingle the same with other ore,
either in the mine, in ore stockpiles or in the mill. It shall be Hanover's
responsibility to carefully determine such amounts and make such measurements,
analyses and calculations as are necessary to accurately ascertain the royalties
payable hereunder prior to any such commingling.
2.4 Water Rights. Owner's water rights, if any, on, about, under, or
which is appurtenant to the Property.
2.5 Deposit Of Waste Materials. The right to the extent permitted
under the mining laws of the United States, to temporarily or permanently
deposit tailings slurry, waste rock, overburden, surface stripping, process
solutions and all other materials from the Property or from adjoining or nearby
properties on or off the Property, even if the sole use of the Property may be
for the placement of such materials.
2.6 Treatment. The right, at Hanover's election and in any manner it
deems fit, to beneficiate, concentrate, process and/or otherwise treat any
Products taken from the Property by any physical or chemical method. In
exercising this right, Products may be removed to a plant or plants established
or maintained either upon the Property or elsewhere.
2.7 Closing If Property Is Leased. If Hanover timely exercises its
Option to lease the Property, this Agreement shall continue in effect and
Hanover rights to lease the Property shall commence, giving Hanover all mining
rights to the Property and all minerals contained on, in and under the Property.
(a) Owner shall deliver to Hanover a properly executed and
acknowledged document, in a form acceptable to Hanover, leasing the Property
free and clear of liens and encumbrances, other than set forth in Schedule A,
indicating that the Owner holds title or has possession of the Property.
(b) Hanover shall be responsible for maintaining the Property in
good order during the term of this Agreement.
(c) Ad Valorem, property and other taxes, BLM rentals fees and other
and assessments imposed upon the Property during the Option Period shall be paid
by Hanover. Upon exercise of the Option, as of the date of closing, Hanover
shall continue to be responsible for all such taxes and assessments.
(d) The parties shall execute and deliver such other documents and
shall take such other action as may be necessary to carry out their obligations
under this Agreement.
2.8 Closing If Property Is Purchased. If Hanover elects to exercise
its Option to purchase the Property, Owner shall prepare, execute and deliver to
Hanover a good and sufficient mining deed to the Property in a recordable form,
which deed shall reserve to Owner the production royalty, the Owner's right to
take Owner's pro rata share of production in kind and the rights of examination
of books and records, all as set forth in Article V below, and the grant
contained in such deed shall be made subject to the performance by Hanover of
the covenants, conditions and indemnities described in Section 2.3 and Article
IV of this Agreement. Delivery of the deed shall not be complete until Hanover
returns to Owner a duplicate thereof evidencing on the face of the deed the
acceptance by Hanover of the reservations, covenants, conditions and indemnities
therein provided.
2.9 Escrow In Event Of Purchase. If Hanover exercises its Option to
purchase the Property, the parties shall, contemporaneously with the delivery of
the mining deed described in Section 2.8, establish an escrow with an escrow
agent mutually acceptable to Hanover and Owner and Hanover shall execute and
deposit in the escrow a good and sufficient mining deed in a recordable form
reconveying the Property to Owner for delivery to Owner upon the failure of
Hanover to correct or cure any default of Hanover in the payment or performance
of any of its material obligations under the mining deed within the times and in
the manner as provided in Section 6.1 below. As additional consideration for the
purchase by Hanover of the Property, Hanover shall pay or reimburse Owner for
all costs and expenses (including legal fees and disbursements) in the
preparation and delivery of the mining deed and in establishing the escrow
described above and Hanover shall pay all of the costs of opening and
maintaining the escrow; provided, that if Owner fails to execute and deliver the
mining deed as above provided, Owner shall be liable to Hanover for the costs
incurred by Hanover, including legal fees and disbursements, to enforce its
rights and remedies under this Agreement.
2.10 Non-Exercise of Option. Notice of waiver to Owner or the failure
of Hanover to dispatch a notice prior to the expiration of the Option Period
will constitute an irrevocable waiver of the Option and the parties thereafter
will be released from the terms of this Agreement, except that Hanover shall
have the rights contained in Section 6.2 and 6.3 below and shall comply with the
provisions of Section 4.1 below.
III. TITLES AND INFORMATION
3.1 Owner's Warranties. Owner represents and warrants to Hanover that
Owner is the record title owner of the Property as set forth in Schedule A,
subject to the matters set forth therein;
that Owner has the right and power to convey the same for the purposes
of this Agreement; and
that the same are free from all prior liens or encumbrances, other
than as may be described in Schedule A and the official records of the court
houses where recorded; and
that subject to the provisions of and the obligations and
requirement of the United States Mining Law, Hanover shall have quiet and
peaceable possession of the Property; and
that Owner will defend its title or possession rights to the
Property against all persons who may claim the same by, through, or under Owner,
but not otherwise; and
that Owner has not committed, nor will Owner in the future commit,
any act or acts which will encumber or cause a lien to be placed against the
Property except subject and subordinate to the terms of this Agreement.
IV. CONDUCT OF OPERATIONS
4.1 Standard of Performance. Hanover shall cause all exploration work
to be done in a careful and good miner--like manner, and to conform in all
respects to applicable governmental rules, regulations and statutes. Further,
Hanover shall conduct its operations under this Agreement in a manner that will
not unreasonably damage the surface of the Property and, in the event the Option
is not exercised, shall reclaim, in accordance with applicable rules,
regulations and statutes, all portions of the surface of the Property that are
disturbed by Hanover's operations.
4.2 Indemnification and Insurance. Hanover shall assume all liability
to third parties in connection with all of its operations on the Property and,
except as provided in Section 8.1 of this Agreement, shall indemnify Owner
against any and all liability that may arise out of Hanover's operations on the
Property, which indemnity shall survive the expiration or termination of this
Agreement. Hanover shall carry liability insurance protecting Owner against
damages arising out of Hanover's operations on the Property.
4.3 Permits. Owner understands that Hanover may make efforts to
obtain permits and other authorization of every kind and nature whatsoever from
governmental or private entities as may be necessary to conduct mineral
exploration activities. While Hanover shall be solely responsible in these
efforts, Owner agrees to assist and cooperate fully with Hanover in any and all
such endeavors upon Hanover's request.
4.4 Annual Project Summary. Upon written request, Hanover shall
provide Owner with an annual project summary within six (6) months after the
first anniversary of the effective date of this Agreement.
4.5 Liens, Taxes. During the Option period, Hanover shall keep the
title to the Property free and clear of all valid liens and encumbrances
resulting from its exploration operations under this Agreement and shall pay
when due all taxes and assessments attributable to the Property. Hanover
however, may refuse to pay and may contest any claim, taxes or assessments
asserted against or imposed upon it that it disputes in good faith, but shall
not permit all or any portion of the Property to be sold at any time for such
taxes or assessments. If the claim is finally resolved against Hanover or the
taxes or assessments are finally determined to be valid, Hanover shall pay the
same upon such final determination.
4.6 No Implied covenants. Hanover does not make any express or implied
covenant, agreement or condition relating to the exploration of the Property.
Whether or not any such exploration shall at any time be conducted, and the
nature, manner and extent of such operations shall be determined within
Hanover's sole discretion.
V. PRODUCTION ROYALTY
5.1 Production Royalty. The parties acknowledge that Owner shall
receive a five percent (5%) net smelter return royalty during the term of
Agreement. Hanover shall pay this royalty directly to Owner during the period of
time that Owner is entitled to receive said royalty.
Net Smelter Return Royalty: The term "Net Smelter Return" ("NSR") is hereby
defined as the value of all minerals and values mined, produced, saved or sold,
in whatever form, from the Property hereinabove described and set forth, as a
percentage of the value of Products or values mined, produced, saved or sold,
calculated in accordance with generally accepted accounting principles and which
may be payable to Hanover by any smelter, mill or other purchaser of
concentrates, ores, minerals, metals or by--products mined or produced from the
said Property, less all smelting, refining, minting, and transportation charges
from the mine or mill to the places where the ores or minerals are smelted,
refined and/or sold.
Unless otherwise provided, the NSR royalty payment in U.S. Dollars shall be paid
to Owner within thirty (30) days after the end of the calendar quarter in which
the processing and refining of the ores and minerals is completed, for which
Hanover has received payment thereof. All copies of invoices showing dates,
approximate weights and name of the smelter, mint, mill or other purchaser shall
be sent to Owner with each payment.
5.2 Right To Take In Kind. In lieu of receiving the production royalty
payments specified in Section 5.1, Owner shall have the right to elect to take
in kind and separately dispose of her pro rata share of production (based on the
percentage of Xxxx Xxxxxxx Return royalty to which Owner is entitled) in the
form in which Hanover ships or sells its own product by giving written notice to
Hanover of such election; provided that as to gold dore or other form of gold
refined by or shipped directly by Hanover to a refinery, Hanover shall deliver
Owner's share in the form of gold bullion. The right to take in kind shall be
subject to the following conditions: (i) no such election shall be for a period
of less than six (6) consecutive calendar months; (ii) the right to take in kind
shall commence on the first day of the calendar quarter next following the date
twenty (20) days after Owner has given written notice of her election to take in
kind; (iii) Owner shall pay (or reimburse Hanover if paid by Hanover) all
transportation, treatment and handling charges and costs incurred for that
portion of production which Owner takes in kind; and (iv) all loss, risk, cost
and expense incurred from and after the point in time at which Hanover ships or
makes such product available for shipment from the Property shall be borne by
Owner.
5.3 Owner's Right To Examine Records. Owner shall have the right, upon
prior written notice to Hanover and in such manner as shall not unreasonably
interfere with Hanover's operations, to examine the books and records necessary
to determine the correctness of the payments made or products delivered to Owner
hereunder at any time prior to the expiration of twelve (12 months following the
receipt by Owner of the applicable payment or product. Owner shall conduct such
examinations at her expense, provided that if such examination reveals an
underpayment or an under delivery to Owner of any calendar quarterly payment or
delivery totalling more than 2% of the payment or delivery actually due Owner
for such period, Hanover shall promptly reimburse Owner for all the costs
incurred by Owner in conducting such examination.
VI. TERMINATION AND EOUIPMENT REMOVAL
6.1 Termination By Owner. (a) The failure by Hanover to keep or
perform any o the obligations on its part according to the terms and conditions
hereof, shall, at the election of Owner, constitute a breach of this Agreement
unless such default be remedied as hereinafter provided. In the event of any
such default, and any such election by Owner, he shall first give Hanover
written notice of his election to terminate this Agreement specifying the
particular default or defaults relied upon by Owner.
(b) Hanover shall have a reasonable time (which if the specified
default involves only the payment of money, shall not be more than twenty (20)
days, which in any other case shall be not more than sixty (60) days after
receipt of such notice within such specified default or defaults may be
remedied. If such defaults are remedied there shall be no breach hereunder with
respect to such default or defaults. No waiver of, and no failure on the part of
Owner to give notice of the default or defaults shall affect any subsequent
default or impair Owner's rights resulting therefrom. If Hanover shall dispute
that a default has occurred, it shall so advise Owner within twenty (20) days if
the specified default involves only the payment of money, and within sixty (60)
days in all other cases. If the dispute cannot be settled between the parties
directly, the parties approach shall first be to submit the dispute to
arbitration or alternative dispute resolution methods, in order to reach a
settlement between the parties. If the decision of such approach is not
acceptable to a party, either party shall still have the option to settle a
dispute in a court of competent jurisdiction. If the decision of the arbitrator
or court shall be that Hanover was at fault, then it shall have a reasonable
time thereafter within which to remedy the default or defaults (but not to
exceed 60 days) before Owner may terminate the Agreement in the manner provided
for herein, and if such default or defaults shall then be remedied there shall
be no breach hereunder with respect to the same. If Hanover is deemed not to be
at fault following the settlement of a dispute, then all expenses incurred by
Hanover shall be borne and paid for by Owner and if Hanover is deemed to be at
fault, then all expenses incurred by Owner shall be borne and paid for by
Hanover.
(c) If Hanover shall fail to remedy a default, Owner may terminate
this Agreement by providing Hanover with written notice of such termination.
(d) In the event Owner terminates this Agreement on the account of
breach by Hanover, Hanover shall be under no further obligation or liabilities
hereunder to Owner from and after the date of such termination except for the
performance of all obligations and payments and the satisfaction of liabilities
to third parties which have accrued to the date of such termination and Lor the
performance of its obligations upon such termination as herein set forth.
6.2 Termination By Hanover. Hanover may terminate this Agreement at
any time by giving Owner thirty (30) days prior written notice of its intention
to do so. Upon such termination, Hanover shall be relieved of all obligations,
except as to any obligations already accrued to the date of such termination and
for the performance of its obligations upon termination as herein set forth.
Hanover shall be responsible to properly maintain the subject Property prior to
termination up to the actual date of termination. If termination notice is given
by Hanover to Owner during the Option Period, upon such termination by Hanover,
Hanover shall be paid by Owner the Option Payment as specified in Section 1.4.
Owner shall pay Hanover the Option Payment within 60 days after notification by
Hanover to Owner that Hanover does not wish to proceed with exploration or on
September 15, 1995, which ever date later occurs.
6.3 Removal Of Equipment. (a) It is mutually understood and agreed
that in case of forfeiture, default, surrender, or other termination of this
Agreement, underground timbering supports, shaft linings and other fixtures
necessary for the preservation of a mine on the Property, including head frames
upon or in the Property s)hall be and remain a part of the realty and shall
revert to Owner without further consideration or compensation, however,
specifically excluded are pumps, fans, rails, piping, air bags, lighting
fixtures, medical facilities, storage bins/boxes, electrical panels, switches,
buildings, underground mining and support equipment, conveyors, hoists,
exploration equipment, surface mining and support equipment, supplies and
structures.
(b) It is further understood and agreed that all personal property of
Hanover located on or within the Property, and all buildings, machinery,
equipment, and tools (other than the fixtures to become the property of Owner as
above provided) shall be removed from the property by Hanover within one hundred
eighty (180) days after the forfeiture or termination of this Agreement. All
property remaining on the Property after the expiration of the one hundred
eighty (180) day period shall become the property of Owner, provided that Owner
gives written notice to Hanover within sixty (60) days following expiration of
the removal period describing specific items of removal equipment and
improvements to be removed, Hanover shall remove the same or pay Owner for the
removal thereof.
VII. FORCE MAJEURE
7.1 FORCE MAJEURE. If Hanover shall be delayed or prevented in
performing any of its obligations hereunder )by reason of any strike, lockout,
labor, trouble, war, riot, insurrection, civil commotion, fire, flood, storm,
accident or other act of God, order, requirement or regulation of any
governmental instrumentality or agency, shortage of labor, equipment or
materials, plant breakdown, interruption or delay in transportation, or any
other circumstances beyond its control, such failure or delay in performance of
such obligation shall be extended for such period of disability, and the date
for performance of such obligation shall be extended for such period of
disability, provided that Hanover shall use reasonable diligence to remove such
cause of disability, but shall not be required to settle strikes, lockouts or
other labor difficulties contrary to its wishes or to challenge the validity of
any government order, request, law or regulation.
VIII. INSPECTION AND CONFIDENTIALITY
8.1 Inspection. During the term of this Agreement, Owner shall have
the right to enter upon the Property for purposes of inspection to assure
compliance with this Agreement. In the exercise of this right, neither Owner and
its agents and representatives shall interfere with or obstruct the operations
of Hanover on the Property. Owner and its agents and representatives shall enter
upon the Property at their own risk, and Owner agrees to indemnify, defend and
hold harmless Hanover and its Affiliates (including without limitation direct
and indirect parent companies), and its or their respective directors, officers,
shareholders, employees, agents and attorneys, from and against any Liabilities
which may be imposed upon, asserted against or incurred by any of them and which
arise out of or results from the entry oC, presence or activities of Owner
and/or its agents and representatives on the Property, including without
limitation bodily injury or death at any time resulting therefrom and damage to
property sustained by any person or persons.
8.2 Confidentiality. Owner shall not, without the express written
consent of Hanover, disclose any information concerning assay results, ore
reserve calculations, ore grades, production schedules or other technical
information furnished to Owner by Hanover and designated by Hanover as
"confidential." However, if Owner contemplates selling or assigning its
interest, it shall have the right to disclose such information to a potential
purchaser if it first obtains an agreement in writing from such third party,
satisfactory to Hanover, providing that the third party shall hold confidential
the information furnished to it.
IX. ASSIGNMENTS AND TRANSFERS
9.1 By Owner. Owner shall have the right to transfer all or any
portion of the Property to others, provided that (a) the transfer shall be
subject to this Agreement and to all rights of Hanover, its successors and
assigns, under this Agreement in and to the Property and the transferee agrees
to this in writing; (b) no change or division in ownership of the Property,
however accomplished, shall operate to enlarge the obligations or diminish the
rights of Hanover under this Agreement; and (c) no change or division in the
ownership of the Property shall be binding upon Hanover for any purpose until
the person acquiring any interest has furnished Hanover with the instrument or
instruments constituting his claim of title from the original Owner.
9.2 By Hanover. Hanover shall have the right at any time to assign
all or any portion of its rights under this Agreement. No assignment, however,
shall release Hanover from the performance of its obligations under this
Agreement until and unless Owner has consented in writing to the assignment,
provided however, that such consent shall not be unreasonably withheld. A
transfer by Hanover to any direct or indirect subsidiary or affiliate of Hanover
shall not be deemed a transfer, nor shall the transferee be deemed an assignee
for purposes of this Agreement.
X. GENERAL
10.1 Term. The term of this Agreement shall be for 20 years from the
exercised option date of this Agreement or until exhaustion of all Products
following commencement of mining or exploration operations, unless the Agreement
is earlier terminated as herein provided.
10.2 Timber Rights. To the extent permissible under the federal mining
laws, Hanover shall have the right to use timber on the Property for mining
purposes and buildings on this Property and other property held by Hanover or
its affiliates.
10.3 Partnership. Nothing in this Agreement shall be construed to
imply a partnership relationship between the parties hereto.
10.4 Entire Agreement. This is the entire agreement between the
parties. No modification of this Agreement shall be effective unless in writing
and executed by the parties to this Agreement.
10.5 Governing This Agreement shall be governed in all respects by the
laws of the State in which the Property is located.
10.6 Further Documents. The parties shall execute all such further
documents and do all such further things as may be necessary to give full effect
to the terms of this Agreement including, without limitation, the execution and
recording of a memorandum counterpart of this Agreement.
10.7 Binding Effect. All of the covenants, conditions and provisions
of this Agreement shall run with the land and shall inure to the benefit of and
be binding upon the parties, their respective heirs, executors, administrators,
successors and assigns.
10.8 Headings. The headings appearing in this Agreement are inserted
for convenient reference purposes only, and are not definitive as to the
provisions contained within said Articles in the interpretation and construction
of this Agreement.
10.9 Survival. To the extent necessary to effectuate the intention of
the parties, this Agreement shall survive (a) exercise of the Option and the
delivery of all documents and other instruments at the closing and (b)
termination of this Agreement.
10.9a Notice. Any notice required to be given hereunder by either
party to the other shall be given in writing and shall be by first class,
certified or registered mail, return receipt requested, addressed to the parties
at the addresses as follows:
Owner: Xxxxxx Xxxxxxx d/b/a Terra Mining Company
000 Xxxxxxx Xxxx Xxxxx Xxx Xxxx, XX 00000
With copy to: Xxx X. Xxxxx
Attorney at Law
0000 X. Xxxxxx Xxxx
Xxxxxx, XX 00000
Hanover: Xxxx X. Xxxxxx, President The Hanover Group, Inc.
P. 0. Xxx X Xxxxxx, XX 00000
With copy to: Xxxxx X. Xxxx, Esg.
Berlack, Israels & Xxxxxxxx
000 Xxxx 00 Xxxxxx
Xxx Xxxx, XX 00000
and shall be deemed to be received within seven (7) days of the mailing thereof.
In the event of an actual or threatened postal strike affecting mail
delivery, any notice, payment or communication shall be delivered and shall be
deemed to have been received when actually received.
EXECUTED as of the day and year first above written.
OWNER THE HANOVER GROUP, INC.
By:/s/Xxxxxx Xxxxxxx By: /s/ Xxxx Xxxxxx
-------------------- -------------------
Xxxxxx Xxxxxxx d/b/a Xxxx Xxxxxx
Tetra Mining Company
Title: Owner Title:President
------------ ---------------
SCHEDULE A
UNPATENTED PRECIOUS METALS CLAIMS
Name of Claim BLM Serial No.
------------- -------------
Xxxxxxx Xxxxxx CMC 20671
Xxxxxxx Xxxxxx No. 3 CMC 20672
Xxxxxxx Xxxxxx No. 4 CMC 20673
Xxxxxxx Xxxxxx No. 5 CMC 149931
Gyrene CMC 20674
Xxxxxx Xx. 0 XXX 00000
Xxxxxx No. 5 CMC 20679
Gyrene No. 6 CMC 20680
Xxxxxx Xx. 0 XXX 00000
Xxxxxx No. 10 CMC 20684
Xxxxxx Xx. 0 XXX 00000
Xxxxxx No. 3 CMC 20677
Gyrene No. 4 CMC 20678
Gyrene No. 7 CMC 20681
Gyrene No. 8 CMC 20682
Gnipp No. 1 CMC 163809
Gnipp No. 2 CMC 163810
Gnipp No. 3 CMC 163811
Gnipp No. 4 CMC 163812
Gnipp No. 5 CMC 163813
Xxxxxx No. 6 AMC 28816
Xxxxxx No. 8 AMC 28818
Xxxxxx No. 12 AMC 28822
Xxxxxx No. 28 AMC 28838
Xxxxxx No. 29 AMC 28839
Xxxxxx No. 30 AMC 28840
Xxxxxx No. 61 AMC 28865
Xxxxxx No. 62 AMC 28866
All of which claims are subject to:
1. paramount title of the United States;
2. all existing roads, rights of way and easements and those of
record in the office of the County Clerk or Recorder of the
Counties in which the claims are located and those of record in
the State Offices of the Bureau of Land Management in the
States in which the claims are located;
3. all leases, permits, approvals and other rights and privileges
heretofore or hereafter granted by or obtained from the United
States in its administration of its paramount title; and
4. taxes, if any, which may constitute lien but which are not yet
due and payable.
