2013-10-21_REVISION - M1985112 - Laserfiche WebLink

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10117/2013 08'24 FAX 9703784823 Loloff Const Inc 00002/0006 10/17/2013 09:12 970 -353 -9701 CHAVIES CHILDERS Material Production Agreement 76,*� Irr�i lThis Material Production Agreement (the "Agreement ") is made this _7 day of 2013 between Mill Iron Mining, LL C, a Colorado limited liability company ( "Mill iron") and Loloff Construction, Inc., a Colorado corporation ("Loloff). RECITALS PAGE 01 Loloff has a permit from the Colorado Division of Reclamation, Mining and Safety (the "DRMS'), Permit No. M- 1985 -112 (the "Permit") which allows for mining activity at the "Loloff Mine" located in Weld County, approximately one mile east ofGrceley, Colorado. Mill Iron has the equipment and personnel to produce aggregate products from the Loloff Mine. Mill iron and Loloff desire to enter into an agrocment which will allow Mill Iron to process and produce gravel and aggregate products from the raw materials madc available from the Loloff Mine with the Permit, and to pay Loloff a royalty for all amounts produced, processed and subsequently sold by Mill Iron. Now, therefore, for valid consideration, the receipt and sufficiency of which all parties acknowledge receipt of, Mill Iron and Loloff agree to the following: 1. During the term of this Agreement, Loloff will maintain with the DR.MS any financial and performance warranties needed to keep the Loloff Mine operating in compliance with the Permit. 2. Mill Iron will provide and operate the equipment and personnel necessary to process gravel and aggregate products at the Loloff Mine in sufficient quantities to meet demand. At a minimum, Mill Tron will provide t17e personnel and equipment to provide no less than twenty thousand tons of gravel and aggregate products per month. 3. Mill Iron, shall be solely responsible for the operation, irainte; ancc and repair of the Processing ecluipmcm which it operates. The processing equipment will be operated pursuant to a Mine Safety and Health ( "MSHA ") permit issued to Mill iron for the Loloff Mine. NO l Iron shall be solely responsible for compliance with its MSHA permit. 4. Mill Iron shall be responsible for the extraction of all gravel and aggregate in the Loloff Mine. rurtlyer, Mill Iron will be responsible for providing and. operating the scale house, maintenance of the sales yard and all other costs related to the Loloff Mine except those detailed in paragraph 1 of this Agreement.