PERMFILE56400 - Laserfiche WebLink

Home Browse Search

• Page Two • •4. Lessees will pay the minimum royalty payment in cash or bankable funds in advance at the commencement of each year during the lease with the first payment .to be made on or before the inception date of this contract which is March 7, 1987. All minimum royalty payments shall be made in advance on or before March 1 of each year during the term. As ore is removed during any calendar month of the lease, Lessees will pay to Lessor additional royalty per ton as is provided in Schedule "B" on a monthly basis as follows: Upon removal of ore from the premises, the Lessees will pay to the Lessor 30~ of the amount due Lessor and 70°~ of the royalty shall be paid when the material is sold. The parties agree that the weight will be determined by weight tickets which Lessee will furnish to Lessor for every load of ore removed from the premises. Lessor makes this accommodation for Lessees as it is understood that the material has to be mined, stored, crushed and bagged before the same can be sold. At the end of each month, Lessees shall furnish to Lessor copies of all weight tickets for all ore removed from the premises which will be the basis for a determination as to additional royalty due hereunder. It is agreed that the royalty will not be changed during the term of lease regardless of production of new products from the premises, or new methods of mining, quarrying, milling, screening, etc. Lessees will make the determination as to how the products will be mined and the method used for removal, processing, etc. 5. Lessor represents and warrants that he •h as the right to lease the patented mining claims identified on Exhibit "A" and that he also owns and has a right to lease the unpatented mining claims described ~n Exhibit "A", and represents and warrants that the unpatente mining claims have been properly and validly located under the mining laws of the United "States of America and the State of Colorado; that assessment work has been done on each of the unpatented mining claims as required by law. 6. Lessees may install, maintain, replace and remove during the term of this agreement any and all mining machinery, equipment, tools and facilities now or subsequently placed thereon and which they may desire for use on or in connection with its operations hereunder on the said premises. Lessees shall pay in full for all labor performed upon or material Furnished to the said premises at the instance or request of the Lessees, and shall keep the whole thereof, free and clear from any liens of mechanics or materialmen. Lessees shall post, and keep posted, upon saitl premises notice to the effect that the same are leased and that Lessor shall not, nor will the said premises, be liable for any labor performed upon or materials furnished to the said premises at the instance or request of the Lessees. ` ~ ''~• ~?~~ i~~, J /