EXHIBIT 10.2
Agreement on
Compensation for the Failed
Transfer of Mining Rights for the Xintaizi Gold
Mine in Kangding
Party A: Yunnan Long Teng Mining Co., Ltd. (hereinafter
referred to as "Party A");
Party B: No.209 Geological Brigade of Yunnan Provincial
Nuclear Industry(hereinafter referred to as "Party B").
Whereas the share of Kangding Kangma Mining Ltd. ("Kangding
Kangma") and its mining rights for the Xintaizi Gold Mine in
Kangding, Sichuan (the "Mining License") has not yet been
transferred to Party A, Party B is willing to compensate Party A
for the relevant losses to date in the hope of future cooperation.
The two parties have fully consulted with each other through
negotiations and concluded the following Agreement on Compensation
for Transfer of Mining Right:
I. Compensation Method and Amount The compensation shall
be made in cash. The compensation amount is RMBY 1,500,000 (one
million & five hundred thousand RMB Yuan only, the
"Compensation Amount").
II. Payment Method and Time Payment of the Compensation
Amount shall be performed through transfer account mode within 20
days once the Agreement is signed.
III. Items partially compensated by the Compensation
Amount
1. The purchase price amount of Mining License already advanced
to the vendors;
2. Money expended for construction and labor on exploration
activities of Xintaizi Gold Mine in Kangding;
3. The transfer fee paid by Party A to Kangding Bureau of Land
and Resources for the Mining License;
4. The constructing fee paid by Party A for repairing the road
to the mining area which was ruined by river;
5. The expense disbursed by Party A for the relevant business trips
to Kangding.
IV. Surviving problems to be solved
1. After the Agreement is signed and sealed by the two parties,
Party B shall correspond with relevant parties and warrant that the
entire Mining License Transfer Contract of Xintaizi Gold Mine (the
Erligou Gold Mine) in Kangding, Sichuan, which was entered int
