EXHIBIT 10.28
BIO CONSULT LTD.
(ENVIRONMENTAL MANAGEMENT CNSULTANTS)
X.X. Xxx XX 000, Xxxxx TEL x000-00-000000/x000-000-000000
E-mail: xxxxxxxxxxxxx@xxxxx.xxx
AGREEMENT BETWEEN XTRA-GOLD MINING LIMITED AND BIO CONSULT
LIMITED CONCERNING THE PREPARATION OF AN ENVIRONMENTAL
IMPACT STATEMENT FOR THE KIBI MINING PROJECT
This agreement is made this 17TH day of January, 2006, between XTRA-GOLD MINING
LIMITED ("Xtra-Gold"), of 3rd Floor, Xxxx Xxxxx House, No. 5 Okai Mensah,
represented by its authorized agent, Mr. Alhaji Nantogma Abudulai, who is also
the Vice-President, Ghana Operations of Xtra-Gold Resources Corp., the owner as
to a 90% interest of Xtra-Gold herein referred to as the CLIENT and BIO CONSULT
LTD. of P.O. BOX GP 794, Accra, represented by their Director, Xx. Xxxxx
Xxxxxxxx, hereinreferred to as the CONSULTANT that. The Kibi Mining Project
(hereinafter the "PROJECT") refers to the planned alluvial mining operation at
the Kwabeng, Pameng and Apapam concessions in the Eastern Region of Ghana. The
Kwabeng and Pameng concessions are each covered by a mining lease while the
Apapam concession is covered by a prospecting license. The Client intends to
apply for the addition of the Apapam concession to the existing mining lease for
Pameng.
1. The Consultant will assemble a team of experts to conduct studies and
prepare an Environmental Impact Statement (EIS) for the Project for
submission to the Environmental Protection Agency on behalf of Xtra-Gold.
2. The Consultant's team will include:
o An Environmental Specialist
o Mining Engineer
o Sociologist
o Environmental Technician
o Hydrogeologist
Who will conduct the studies in an environmentally sustainable manner that will
satisfy the requirement for obtaining environmental clearance or permit from the
Environmental Protection Agency.
3. In the preparation of the EIS the Consultant will follow the outline
contained in the Environmental Impact Assessment Procedures.
4. The Consultant's plan of work for the studies will be as follows:
i. Acquire / produce relevant maps, sites plans and proposals.
ii. Conduct reconnaissance surveys of project area and select sites for
investigations and environmental quality monitoring.
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iii. Collect and collate existing data on the project area, conduct
consultants with relevant agencies and communities and prepare draft
Scoping Report.
iv. Submit draft Scoping report to Xtra-Gold for comments.
v. Conduct public forum to discuss project proposals with stakeholders
and interested and affected person (IAPs)
vi. Revise draft Scoping report based on comments from Xtra-Gold and
public forum.
vii. Submit Scoping report to EPA for review
viii. Conduct environmental quality monitoring and analysis of samples.
ix. Conduct data analysis and compile draft report
x. Submit draft EIS to Xtra-Gold for comments.
xi. Revise draft EIS based on comments from Xtra-Gold
xii. Submit final draft to EPA
xiii. Revise draft EIS based on comments from EPA
xiv. Submit FINAL to EPA
5. The studies will be completed and the FINAL REPORT submitted within a
period of three (3) months from the date of this agreement, excluding the
periods during which reports submitted by the Consultants are reviewed by
Consultants are reviewed by Xtra-Gold or EPA.
6. The format for the preparation of the EIS will be as follows:
6.1 Description of the proposed project
a. Purpose and justification of the project
b. Project description
c. Primary impact area
6.2 Description of the existing environmental conditions.
a. Natural environment
b. Human-made environment
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6.3 Assessment of Environmental Impacts
a. Impacts on topography, geology and soils
b. Impacts on water quality and drainage
c. Impacts on land use, zoning and socio-economic characteristics of
the project's area of influence
d. Aesthetic impacts and landscape
e. Health impacts
f. Impacts on air quality
g. Noise nuisance and traffic impacts
h. Impacts related to possible population displacement and
resettlements.
6.4 Unavoidable adverse impacts
a. Disruption of subsistence agricultural lands
b. Increased traffic
c. Modification of hydrological regime
6.5 Alternatives to the proposed project
a. No certain scenario
b. Alternative within the proposed project
7. THE CONSULTANT WILL SUBMIT HIS REPORTS AS FOLLOWS:
- Two (2) copies draft scoping report for review by management of
Xtra-Gold
- Ten (10) copies of final scoping report for submission to the
Environmental Protection Agency
- Two (2) copies of draft Environmental Impact Statement for review by
Xtra-Gold
- Twelve (12) copies of draft Environmental Impact Statement for
review by EPA
- Eight (8) copies of final Environmental Impact Statement for
submission to the Environmental Protection Agency
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8.0 In consideration of the above job Xtra-Gold agrees to pay the Consultant
the negotiated amount of $33,400 EXCLUDING Value Added Tax. Payment for
the service shall be as follows;
8.1 1ST PAYMENT: - 50% of the contract sum of $16,700 after signing the
agreement and upon submission of the Consultant's
invoice for mobilization.
8.2 2ND PAYMENT: - 30% of the contract sum of $10,020 upon submission
and clearance of Scoping and Terms of Reference (TOR) by
the Environmental Protection Agency. If the Scoping and
TOR is not cleared by the EPA, the CONSULTANT will cover
all further costs required to revise the Scoping and TOR
such that they are cleared by the EPA.
8.1 3RD PAYMENT: - 20% of the contract sum of $6,680 upon receipt of
the Environmental Protection Agency's permit invoice. If
the EPA permit is not received, the CONSULTANT will
cover all further costs required to obtain such receipt.
9.0 Any dispute rising out of this agreement shall be referred to a single
arbitrator agreed between Xtra-Gold and the Consultant.
IN WITNESS WHEREOF the parties here to have executed this Agreement as of the
day and year first above written.
SIGNED AND SEALED with the common
Seal of XTRA-GOLD MINING LIMITED /s/ Alhaji Nantogma Abudulai
and DELIVERED in the presence of ALHAJI NANTOGMA ABUDULAI
Authorized Agent of Xtra-Gold
Mining Limited
and Vice-President, Ghana
Operations of Xtra-Gold
Resources Corp.
WITNESS
SIGNED AND SEALED with the common /s/ Xxxxx Xxxxxxxx
Seal of BIO CONSULT LIMITED XXXXX XXXXXXXX
And DELIVERED in the presence of Director
WITNESS /s/ Xxxxxx Xxxxx
Xxxxxx Xxxxx
CHARGES FOR THE APAPAM STUDY WILL BE DISCUSSED LATER
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