EXHIBIT 10.3
Option to Purchase Property Agreement
This Agreement made effective August 1, 1998
Between: Xxxx X. Xxxxxx
Xxx 0000
Xxx Xxxx, Xxxxxxx X0X 0X0
(hereinafter referred to as the "Optionor")
And: Charger Ventures Inc.
A Nevada corporation
(hereinafter referred to as the "Optionee")
This Agreement concerns the Xxxxxx Claims, Confederation Lake, Ontario,
and consists of the Xxxxx and Earngey Townships in the Red Lake Mining
Division, and are numbered 1144151, 1144152, 1144154, (the "Title")
The terms agreed upon by the parties are as follows:
1) The Optionor warrants that he has registered the Title and owns a
100% interest in the Title. Optionor wishes to sell a 100% interest
in the Title, net of a 2% NSR (net smelter return), to Optionee.
2) Optionor warrants that the Title, and each of the claims comprising
the Title, are free and clear of all liens and encumbrances.
3) Optionor warrants that there are no other agreements, options or
royalty's with respect to the Title, except as expressed in this
Agreement.
4) Optionor warrants that he has the authority and legal right to
enter into this Agreement.
5) The Optionee warrants that it is a legally incorporated entity
under the laws of the State of Nevada.
6) The Optionee warrants that it will keep the Title free and clear of
all liens and encumberances including all paperwork related to
keeping the Title in good standing and paying of applicable
property charges including taxes.
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7) As partial consideration for the rights and responsibilities
granted by the Optionor, Optionee agrees to pay to the Optionor the
following cash payments.
a) $5000.00 cash payment within five (5) business days of signing
of this agreement but no later than August 31, 1998.
b) CDN$20,000.00 cash payment on August 31, 1999,
C) CDN$20,000.00 cash payment on August 31, 2000.
d) CDN$20,000.00 cash payment on August 31, 2001.
e) CDN$20,000.00 cash payment on August 31, 2002.
f) Commencing July 31, 2003 the property is subject to a
$20,000.00CDN annual advance royalty payment to be made on or
before August 31 of every year.
8) Optionee shall complete a minimum CDN$80,000 Phase One work program
onor before July 31, 1999. At such time as Optionee has made
CDN$85,000 in cash payments, and financed all work as contemplated
in this Agreement, the ownership to the Title shall be delivered to
the Optionee and the Optionee shall become the sole owner of the
Title, subject only to the Retained NSR and the annual advanced
royalty payment.
9) The parties hereto agree that, should it be deemed appropriate,
they will execute a more formal agreement covering the terms of
this Agreement. Optionee shall be responsible for all legal costs
involved with translation of this or a more formal Agreement, claim
maintenance, and transferring of Title.
10) At Such time as the Optionee has paid the sums (paragraph 7) and
performed the necessary work (paragraph 8) , the Purchase Option
shall be executed and the Optionee shall own a 100% unencumbered
interest in the Title subject to a 2% retained NSR and the annual
advanced royalty payment.
11) This Agreement shall be governed by the laws of the State of
Nevada, USA. Any disagreements between the parties which cannot be
settled amicably, shall be governed by a court of competent
jurisdiction in Nevada.
12) Time shall be of the essence of this Agreement.
13) This Agreement supercedes all other agreements and arrangements
amoung the parties, whether written or verbal.
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Should the terms of this agreement meet your approval, kindly
acknowledge with your signature below.
Xxxx X. Xxxxxx
Per: /s/ Xxxx X. Xxxxxx
Date: Sept. 4, 1998
Charger Ventures Inc.
Per. (signature illegible)
Date: Sept. 8, 1998
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