|
MINING LEASE
<br /> This Mining Lease is made effective as of the 15th day of March 2020 betweenJ��v
<br /> whose address is _ r I "'"`� ' `{:•- ``��
<br /> 2 yq %���7z • »s EGG /1/cz c ct:� r� he "Lessor")and
<br /> GREGG MORRILL, whose address is 12207 Road 29.4, Dolores,Colorado 81323 (the "Lessee").
<br /> WiTNESSETH:
<br /> In consideration of the sum of Fourteen Hundred Dollars ($1,400.00) in hand paid to Lessor by Lessee,
<br /> the receipt and sufficiency of which is hereby acknowledged, and of the covenants and promises
<br /> hereinafter expressed, Lessor and Lessee agree as follows:
<br /> 1. DEFINITIONS The following terms shall have the following meanings:
<br /> 1•1. The term "Property"shall mean the Bancroft Placer Mining Claim M.S. 2243, the Index Placer
<br /> Mining Claim M.S. 2246 and the Little Louise Placer Mining Claim M.S 2247 in Montrose County, State
<br /> of Colorado.
<br /> 1.2.The term "Leased Substances"shall mean air gold, silver, platinum, palladium and other
<br /> precious minerals in, upon or under the Property.
<br /> 1.3.The terms"Primary Term," "Extended Term" and "Production Royalty" shall have the respective
<br /> meanings set forth below.
<br /> 2. GRt,''YT Lessor herby grants, demises, leases and lets exclusively unto Lessee, his successors and
<br /> assigns,the Property,together with the right to explore for and mine Leased Substances by any method,
<br /> and to process or treat by any means, sell or otherwise dispose of Leased Substances, subject to the
<br /> Production Royalty obligations set out in Section 4, below.
<br /> 3. TERM This Lease is granted for a "Primary Term"of two (2)years from the effective date hereof,
<br /> and for a "Extended Term" lasting for so long thereafter as Lessee is conducting continuous exploration,
<br /> development, mining, processing, concentrating or beneficiating operations on a deposit of Leased
<br /> Substances. During the Extended Term, operations shall be deemed conducted on a continuous basis
<br /> unless and until a period of three hundred (300) consecutive days elapses during which no exploration,
<br /> development, mining, processing, concentrating or beneficiating operations are conducted on a deposit
<br /> of minerals,which includes Leased Substances and which lies at least in part within the Property, but
<br /> excluding anv period of Force Majeure as hereinafter provided.
<br /> 4. PRODUCTION ROYALTY Lessee shall pay to Lessor, on a semi-annual basis, a "Production Royalty" of
<br /> Ten percent (10.0%) of the gross value of the Leased Substances mined, produced, derived and sold or
<br /> taken by Lessee from any portion of the Property. Said semi-annual periods shall be the months of
<br /> January through June and the months of July through December of each year during the Primary Term
<br /> or any Extended Term hereof. Payment of Production Royalty to Lessor will be made, by Lessee's check,
<br /> within thirty(30)days after the end of each six month period. The gross value of Leased Substances will
<br /> be determined by multiplying the weight, in ounces,of each salable mineral constituent of Leased
<br /> Substances produced during each six month period times the average spot market price for that mineral
<br /> constituent, as reported by a recognized exchange, for the same time period, with no deductions taken.
<br /> Each such payment will be accompanied by an explanation of the calculation of the Production Royalty
<br /> due,together with any available supporting documentation.
<br /> 4.1. Books and Records. Lessee shall maintain and keep books and records and accowits to reflect
<br /> the mining, storage and shipment of all Leased Substances and of all calculations relative to Production
<br />
|