EXHIBIT 10.1
Platoro West, LLC
P.O. Box 12650
Prescott, AZ 86304
Tel. (000) 000-0000
August 17, 1998
Xx. Xxx Xxxx, President
Zencrest Holdings Inc.
000 Xxxxxx Xxxxxx Xxxxxx
Xxxxxxx, Xxxxxxx
Xxxxxx X0X 0X0
Dear Xxx,
This letter, when acknowledged by your signature below, will serve as a
letter of intent between Platoro West, LLC and Zencrest Holdings Inc. concerning
mineral exploration activities. Platoro agrees to identify and stake 8 to 10
good, marketable, uranium properties for Zencrest, or its successors, during the
initial term of the agreement. These properties will be advanced stage
properties with proven resources and will be in the United States. In
consideration of the foregoing, Xxxxxxxx agrees to the following:
1. Zencrest will pay $5,000.00 per month for an initial agreement period
of twenty four months.
2. The agreement will be renewable by mutual consent for successive yearly
terms.
3. Zencrest will pay direct travel and field expenses including day wages
for field assistance as well as mileage at the allowed U.S. Internal Revenue
Service rate.
4. Zencrest will pay all filing fees for any claims acquired on its
behalf.
5. Zencrest will pay $1,500.00 per month for a full time employee to staff
the data warehouse of Platoro's associated company, Wolfranium Resource
Corporation.
6. Zencrest will provide Platoro with a 0.5% NSR on any properties which
are vended to another company whereby Xxxxxxxx's resulting participation in the
claims is less than 35%.
7. Zencrest will pay Platoro or its associates four hundred thousand free
trading shares of Zencrest Holdings Inc. as soon as the company is up and
trading. Furthermore, one hundred thousand shares of Zencrest Holdings Inc. of
the 1,600,000 control block will be held for Platoro or its associates in
Uranium Strategies Inc. The initial start of Zencrest will have less than ten
million common shares issued and the Platoro holdings will represent slightly
more than five percent of the total issued stock in Zencrest Holdings Inc.
8. Zencrest will maintain all acquired properties in good standing and
will return them to Platoro under any of the following circumstances:
(a) Insolvency of Zencrest.
(b) If the claims are no longer of interest to Xxxxxxxx.
(c) If the claims are not actively explored, developed, or
joint-ventured within 36 months following the date of acquisition of the claims.
If these terms are acceptable to Zencrest Holdings Inc., please indicate
your acceptance of the above by signing in the space below.
AGREED TO THIS ___26___ DAY OF __AUGUST_____,1998:
/s/ Xxxxxxx X. Xxxxxxx /s/ Xxx Xxxx
------------------------- --------------------
Xxxxxxx X. Xxxxxxx Xxx Xxxx
Vice President Exploration President
Xxxxxxx Xxxx, LLC Zencrest Holdings Inc.
