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EXHIBIT 10
JOINT VENTURE AGREEMENT
This Joint Venture Agreement (the "Agreement") is dated, entered
into
and made effective this 17th day of
January, 2005, by and among Mayfair Mining
and Minerals ( UK ) Ltd. ("Mayfair UK"),
Mwaca Mines and Gemstones Ltd., a
Zambia private company and Kasazi Mining
Limited, a Zambia private company, all
of Kafue, Luzaka, Zambia (jointly referred
to as "Nyendwa")
R E C I T A L S
A. Nyendwa is the owner, free and clear of certain prospecting
licenses, property and improvements
situated thereon, all as more particularly
described in Schedule A attached hereto and
incorporated herein by reference
(the "Properties").
B. Mayfair UK and Nyendwa desire to jointly form a Zambian
private
company to be called Mayfair Zambia or
similar name and enter into a joint
venture whereby the parties shall develop
the Properties outlined in Schedule A.
Now, therefore, the parties hereby agree to be bound on the
following
terms and conditions:
1.
OBLIGATIONS OF MAYFAIR UK:
a)
Mayfair UK will provide a loan to Mayfair Zambia the sum of US
$150,000 as the first year's budget to incorporate the Zambian
subsidiary and set up the infrastructure necessary to perform
the first, second and third year's work program on the
properties and to fund the plant requirements to reopen the
Amethyst mine. As consideration for making such loan, Mayfair
UK shall receive a 70% equity interest in Mayfair Zambia. In
addition, Mayfair shall be repaid the US$150,000 loan from
proceeds from mining operations, if any, on a schedule and
payment plan approved by the Board of Directors of Mayfair
Zambia, in the Board's sole discretion.
b) The
US$150,000 shall be deposited by Mayfair UK into the
Mayfair Zambia working capital bank account in increments of
$12,500 a month, commencing January 2005, or, in the case of
machinery purchase, on an as-needed basis, up to a maximum of
US$150,000. Said monies shall be used predominantly towards
exploration and development of the Properties and, on
expanding the reserves, all as more specifically determined by
the Board of Directors of Mayfair Zambia, in its discretion.
c)
Mayfair UK shall have the right to withdraw its funding
obligations hereunder if it, in its sole discretion,
determines the project subject hereof is no longer feasible
for any reason, and, thereupon, shall have no further
liability to any party for any reason, effective the date
Mayfair gives all parties written notice of its decision.
2.
OBLIGATIONS OF NYENDWA:
(a) Upon
signing of this Agreement Nyendwa shall transfer to the
joint venture company (Mayfair Zambia) the rights to the
mining licenses specifically referred to in Schedule "A", free
and clear of all liens and encumbrances of whatsoever nature,
and shall execute any and all documents required to effect
such transfer in compliance with all local laws, rules and
regulations applicable thereto.
(b) Julie
Nyendwa and Upendo Nyendwa shall be in charge of the
day-to-day working operations of the Mayfair Zambia joint
venture company and shall both be paid a monthly salary, more
specifically outlined in Schedule "B", to perform these
duties. However, the Board of Directors of Mayfair Zambia
shall make all decisions regarding such operations and future
operations. (See paragraph 3(c) below.)
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3.
JOINT OBLIGATIONS OF MAYFAIR UK AND NYENDWA:
(a) After
Mayfair UK's initial investment of $150,000 has been
completed, if additional funds are deemed necessary by the
Board of Directors of Mayfair Zambia to further develop the
Properties, any additional capital investments required shall
be provided by Mayfair UK, on a mutually agreed basis, and
deposited to the credit of Mayfair Zambia's bank account.
(b) All usual
and customary project costs associated with the
Properties shall be billed and carried on the books of Mayfair
Zambia at cost.
(c) A Board of
Directors of Mayfair Zambia shall consist of three
persons and shall be established with representation of two
directors appointed by Mayfair UK and one director appointed
by Nyendwa, and all decisions regarding the Properties and the
management of Mayfair Zambia shall be made by said Board of
Directors.
(d) Mayfair
Zambia shall assume liability for reclamation costs of
the Properties (disturbed areas,