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MINING LEASE WITH OPTION TO PURCHASE

Lease Agreement

MINING LEASE WITH OPTION TO PURCHASE | Document Parties: ABERDENE MINES LTD | CLIFFORD WILLIAM DeGRAW | RICHARD MARKIEWICZ | NEVADA SUNRISE, LLC You are currently viewing:
This Lease Agreement involves

ABERDENE MINES LTD | CLIFFORD WILLIAM DeGRAW | RICHARD MARKIEWICZ | NEVADA SUNRISE, LLC

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Title: MINING LEASE WITH OPTION TO PURCHASE
Governing Law: Nevada     Date: 10/13/2005

MINING LEASE WITH OPTION TO PURCHASE, Parties: aberdene mines ltd , clifford william degraw , richard markiewicz , nevada sunrise  llc
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Exhibit 10.36

 

MINING LEASE WITH OPTION TO PURCHASE

 

THIS MINING LEASE WITH OPTION TO PURCHASE ("Agreement") is made effective this 1st day of January, 2005 by and between CLIFFORD WILLIAM DeGRAW, a single man; and RICHARD MARKIEWICZ, a married man (referred to collectively as "Owner"); and NEVADA SUNRISE, LLC, a Nevada limited liability company ("Lessee").

 

RECITALS

 

A.     Clifford William DeGraw owns and possesses a one-hundred percent (100%) interest in the Mildred patented lode mining claim (MS 4514, Patent No. 891083) situated in the Santa Fe Mining District, Mineral County, Nevada. Clifford William DeGraw owns an undivided fifty percent (50%) interest and Richard Markiewicz owns an undivided fifty percent (50%) interest in the Copper Queen #1 patented lode mining claim (MS 4514, Patent No. 891083) situated in the Santa Fe Mining District, Mineral County, Nevada.

 

The foregoing claims are situated in Section 31, T. 8 N., R. 35 E., MDM. These patented mining claims, together with all ores, minerals, surface and mineral rights, and the right to explore for, mine, and remove the same, and all water rights and improvements, easements, licenses, rights-of-way and other interests appurtenant thereto, shall be referred to as the "Property."

 

 

 

 

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B.     The parties now desire to enter into an agreement giving Lessee the exclusive right to explore, develop, and mine the Property, and further granting to Lessee the exclusive right and option to purchase the Property.

 

THEREFORE, the parties have agreed as follows:

 

SECTION ONE
Lease Term and Royalties

 

1.1     Term of Lease . Owner hereby leases the Property to Lessee for a term of seven (7) years. The Effective Date of this Agreement will be January 1, 2005, and all rights and obligations shall be calculated on the basis of that date.

 

1.2     Lease and Option Payments . In order to maintain the Lease and Option in effect, Lessee shall make the following payments to Owner:

 

a.     Upon execution of this Agreement, Lessee shall pay Owner the sum of TWO THOUSAND FIVE HUNDRED DOLLARS ($2,500.00) to hold the Property to and including March 31, 2005.

 

b.     Commencing on April 1, 2005, and payable every three months thereafter (i.e. , on January 1, April 1, July 1, and October 1 of each year) for so long as this Agreement remains in effect, Lessee shall make the following quarterly payments to Owner:

 

 

 

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Date of Payments

Amount of Quarterly Payment

 

 

April 1, July 1, and October 1,

 

$2,500.00

 

2005; and January 1, 2006

 

 

April 1, July 1, and October 1, 2006;

 

$3,500.00

 

and January 1, 2007

 

 

April 1, July 1, and October 1, 2007;

 

$4,000.00

 

and January 1, 2008

 

 

April 1, July 1, and October 1, 2008

 

$5,000.00

 

and January 1, 2009

 

 

April 1, 2009 all quarters thereafter

 

$7,500.00

 

1.3     Option to Purchase . Owner grants to Lessee the exclusive right and option to purchase the Property for ONE HUNDRED THIRTY THOUSAND DOLLARS ($130,000.00). Lessee shall have the right to exercise this option and purchase the Property at any time during the seven-year term of this Lease. All payments previously made to Owner pursuant to Section 1.2 above shall be applied to the purchase price.

 

Under no circumstance may Lessee place the Property into production without paying Owner the purchase price in full.

 

Upon receiving written notice from Lessee that it will purchase the Property and pay the balance of the purchase price, Owner shall execute a Quitclaim Deed conveying the Property to Lessee. Owner shall deposit the Deed into escrow with a mutually acceptable escrow agent, and Lessee shall deposit the balance of the purchase price with the escrow agent. Escrow shall close within thirty (30) days of Lessee's notice to Owner. Lessee shall pay the escrow costs.

 

 

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1.4     Delivery of Data . Upon execution of this Agreement, Owner shall make available to Lessee copies of all maps, deeds, and other documents in Owner's possession which pertain to the claim title and boundaries, prior workings, production history, and so forth. Lessee shall have the right to copy any or all of these documents at its expense. Lessee shall also have the right to inspect and assay drill core, chip trays, drill cuttings, and other physical samples from the Property in Owner's possession.

 

SECTION TWO
Mining Operations

 

2.1     Right to Explore, Develop and Mine . Following execution of this Agreement, Lessee shall have the right to make geological investigations and surveys, to drill on the Property by any means, and to have all the rights and privileges incident to ownership of the Property, except that Lessee may not commence mining operations on the Property without first paying the purchase price pursuant to Section 1.3 above.

 

2.2     Conduct of Work . Lessee shall perform its exploration activities on the Property in accordance with good mining practice, shall comply with the applicable laws and regulations relating to the performance of exploration operations on the Property, and shall comply with the applicable worker's compensation laws of the State of Nevada.

 

2.3     Liability and Insurance . During the term of the Agreement, Lessee shall indemnify and hold Owner harmless from any claims, demands, liabilities or liens arising out of Lessee's activities on the Property. To that end, Lessee shall immediately obtain and carry a policy of public liability insurance in the amount of $1,000,000.00 or more for personal injury and $100,000.00 for property damage, protecting Owner against any claims for injury to persons or damage to property resulting from Lessee's operations. Lessee shall provide Owner with a certificate of insurance evidencing such insurance.

 

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2.4     Liens . Lessee shall keep the Property free and clear from any and all mechanics' or laborers' liens arising from labor performed on or material furnished to the Property at Lessee's request. However, a lien on the Property shall not constitute a default if Lessee, in good faith, disputes the validity of the claim, in which event the existence of the lien shall constitute a default thirty (30) days after the validity of the lien has been adjudicated adversely to Lessee.

 

2.5     Installation of Equipment . Lessee may install, maintain, replace, and remove during the term of this Agreement any and all mining machinery, equipment, tools, and facilities which it may desire to use in connection with its mining activities on the Property. Upon termination of this Agreement for any reason, period of six (6) months following such termination during which it may remove all or


 
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