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MINING ACQUISITION AGREEMENT

Asset Purchase Agreement

MINING ACQUISITION AGREEMENT | Document Parties: CHANCERY RESOURCES, INC. You are currently viewing:
This Asset Purchase Agreement involves

CHANCERY RESOURCES, INC.

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Title: MINING ACQUISITION AGREEMENT
Governing Law: Nevada     Date: 3/25/2008

MINING ACQUISITION AGREEMENT, Parties: chancery resources  inc.
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MINING ACQUISITION AGREEMENT

THIS AGREEMENT is dated for reference March 19, 2008.

BETWEEN:

ALTOS DE AMADOR S.A., a company having an address at:

Avenida Samuel Lewis y
Calle Gerrado Ortega
Edificio Central, 5to piso
Panama, Rep. De Panama

(the “Vendor”)

AND:

CHANCERY RESOURCES, INC., a company having an address at 422 Richards Street, 3rd Floor, Vancouver, BC V6B 2Z4

(the “Purchaser”)

WHEREAS:

A.                      The Vendors are collectively the registered beneficial owner of an undivided one hundred percent (100%) interest in and to those certain mineral interests which are more particularly described in Schedule “A” attached hereto (the “Property”); and

B.                      The Vendors wish to sell to the Purchaser an undivided one hundred percent (100%) interest in and to the Property and any deposits of minerals on the Property, and the Purchaser wishes to acquire the same on the terms and subject to the conditions as are more particularly set forth herein.

THEREFORE in consideration of the mutual covenants and agreements in this Agreement, the parties agree as follows:

1.                       DEFINITIONS AND INTERPRETATION

1.1                    For the purposes of this Agreement:

  (a)

“Affiliate” means any person, partnership, joint venture, corporation or other form of enterprise which directly or indirectly controls, is controlled by, or is under common control with, a party to this Agreement. For purposes of the preceding sentence, “control” means possession, directly or indirectly, of the power to direct or cause direction of management and policies through ownership of voting securities, contract, voting trust or otherwise;

     
  (b)

“Effective Date” means, March 19, 2008;




  (c)

“Ore” shall mean any minerals of commercial economic value mined from the Property;

     
  (d)

“Payment” means the payments contemplated in paragraph 3.2;

     
  (e)

“Product” shall mean Ore mined from the Property and any concentrates or other materials or products derived therefrom, but if any such Ore, concentrates or other materials or products are further treated as part of the mining operation in respect of the Property, such Ore, concentrates or other materials or products shall not be considered to be “Product” until after they have been so treated.

     
  (f)

“Property” means properties in Columbia, more particularly described in Schedule “A” of this Agreement; and

     
  (g)

“Property Rights” means all licences, permits, easements, rights-of-way, certificates and other approvals obtained by either of the parties, either before or after the date of this Agreement, and necessary for the development of the Property or for the purpose of placing the Property into production or of continuing production on the Property.

1.2                    For the purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires:

  (a)

“this Agreement” means this mining acquisition agreement and all Schedules attached hereto;

     
  (b)

any reference in this Agreement to a designated “Section”, “Schedule”, “paragraph” or other subdivision refers to the designated section, schedule, paragraph or other subdivision of this Agreement;

     
  (c)

the words “herein” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision of this Agreement;

     
  (d)

any reference to a statute includes and, unless otherwise specified herein, is a reference to such statute and to the regulations made pursuant thereto, with all amendments made thereto and in force from time to time, and to any statute or regulations that may be passed which has the effect of supplementing or superseding such statute or such regulation;

     
  (e)

any reference to “party” or “parties” means the Vendors, the Purchaser, or both, as the context requires;

     
  (f)

the headings in this Agreement are for convenience of reference only and do not affect the interpretation of this Agreement; and

     
  (g)

all references to currency refer to United States dollars.

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1.3                    The following are the Schedules to this Agreement, and are incorporated into this Agreement by reference:

Schedule “A”: Property-Legal Description and Location

2.                       REPRESENTATIONS AND WARRANTIES OF THE VENDORS AND THE PURCHASER

2.1                    The Vendors represent and warrant to the Purchaser jointly and severally, that:

  (a)

the Vendors are the beneficial owners of the Property and the Vendors have the full right, power, capacity and authority to enter into, execute and deliver this Agreement;

     
  (b)

the Property is free and clear of, and from, all liens, charges and encumbrances with all assessment work therein having been duly completed through the year ended December 31, 2008;

     
  (c)

the Vendors hold all permits, licences, consents and authorities issued by any government or governmental authority which are necessary in connection with the ownership and operation of its business and the ownership of the Property;

     
  (d)

the Property has been properly staked, located and recorded pursuant to the applicable laws and regulations of Columbia and all mining claims comprising the Property are in good standing;

     
  (e)

there are no outstanding agreements or options to acquire the Property or any portion thereof, and no person, firm or corporation has any proprietary or possessor interest in the Property;

     
  (f)

to the best of the Vendors’ knowledge, there are no outstanding orders or directions relating to environmental matters requiring any work, repairs, construction or capital expenditures with respect to the Property and the conduct of the operations related thereto, and the Vendors have not received any notice of the same and is not aware of any basis on which any such orders or direction could be made;

     
  (g)

there is no adverse claim or challenge against or to the ownership of or title to any part of the Property and, to the best of the Vendors’ knowledge there is no basis for such adverse claim or challenge which may affect the Property;

     
  (h)

the consummation of the transactions contemplated by this Agreement does not and will not conflict with, constitute a default under, result in a breach of, entitle any person or company to a right of termination under, or result in the creation or imposition of any lien, encumbrance or restriction of any nature whatsoever upon or against the property or assets of the Vendors, under their constating documents, any contract, agreement, indenture or other instrument to which the Vendors are a party or by which it is bound, any law, judgment, order, writ, injunction or decree

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of any court, administrative agency or other tribunal or any regulation of any governmental authority;

     
  (i)

there are no actual or pending proceedings for, and the Vendors are unaware of any basis for, the institution of any proceedings leading to the placing of the Vendors in bankruptcy or subject to any other laws governing the affairs of insolvent parties and the Property does not represent all or substantially all of the Vendors’ corporate undertaking;

     
  (j)

reclamation and rehabilitation of those parts of the Property which have been previously worked have been properly completed in compliance with all applicable laws;

     
  (k)

the Vendors have advised the Purchaser of all of the material information relating to the mineral potential of the Property of which it has knowledge; and

     
  (l)

there are no mine workings or waste dumps or mine tailings on the property.

2.2                    The representations and warranties contained in paragraph 2.1 are provided for the exclusive benefit of the Purchaser, and a breach of any one or more representations or warranties may be waived by the Purchaser in whole or in part at any time without prejudice to its rights in respect of any other breach of the same or any other representation or warranty, and the representations and warranties contained in paragraph 2.1 will survive the execution and delivery of this Agreement.

2.3                    The Purchaser represents and warrants to the Vendors that:

  (a)

the Purchaser is a valid and subsisting corporation duly incorporated and in good standing under the laws of the State of Nevada;

     
  (b)

the Purchaser has the full right, power, capacity and authority to enter into, execute and deliver this Agreement and to be bound by its terms;

     
  (c)

the consummation of this Agreement will not conflict with nor result in any breach of its constating documents or any covenants or agreements contained in or constitute a default under any agreement or other instrument whatever to which the Purchaser is a party or by which the Purchaser is bound or to which the Purchaser may be subject; and

     
  (d)

no proceedings are pending for, and the Purchaser is unaware of any basis for, the institution of any proceedings leading to the placing of the Purchaser in bankruptcy or subject to any other laws governing the affairs of insolvent parties.

2.4                    The representations and warranties contained in paragraph 2.3 are provided for the exclusive benefit of the Vendors, and a breach of any one or more representations or warranties may be waived by the Vendors in whole or in part at any time without prejudice to its rights in respect of any other breach of the same or any other representation or warranty, and the

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representations and warranties contained in paragraph 2.3 will survive the execution and delivery of this Agreement.

2.5                    The Vendors and the Purchaser acknowledge that the Vendors will maintain control of the Property, subject to this Agreement, and subject to all appropriate local and national governmental approvals and environmental considerations.

3.                       PURCHASE

3.1                    The Vendors hereby sell to the Purchaser a one hundred percent (100%) undivided interest in and to the Property and all minerals on the Property, free and clear of all claims, taxes, liens or encumbrances, on the terms and conditions set out herein.

3.2                    The consideration payable by the Purchaser to the Vendors pursuant to this Agreement shall be $270,000 cash, payable as follows:

  (a)

$50,000 payable immediately on the signing of this Agreement;

     
  (b)

$70,000 within 30 days of the Effective Date; and

     
  (c)

$150,000 within 90 days of the Effective Date.

3.3                    If the Purchaser identifies any material defect in the Vendors’ title to the Property, the Purchaser shall give the Vendors notice of such defect. If the defect has not been cured within 60 days of receipt of such notice, the Purchaser shall be entitled to take such curative action as is reasonably necessary, and shall be entitled to deduct the costs and expenses incurred in taking such action from Payments then otherwise due or accruing due to the Vendors. If there are no such Payments, the Purchaser shall be entitled to a refund in the amount of said costs and expenses.

3.4                    If any third party asserts any right or claim to the Property or to any amounts payable to the Vendors, the Purchaser may deposit any amounts otherwise due to the Vendors in escrow with a suitable agent until the validity of such right or claim has been finally resolved. If the Purchaser deposits said amounts in escrow, the Purchaser shall be deemed not in default under this Agreement for failure to pay such amounts to the Vendors.

4.                        MINING PROFITS

4.1                   


 
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