REV07304 - Laserfiche WebLink

Home Browse Search

'1. ~II' Michael B. Long Division of Minerals and Geology May 5, 1997 Page 2 Applications for Transfer and Succession of Operator will be filed by May 7, 1997 for these operations: Oceration Name Permit Number Monogram-Jo Dandy Mine M-77-293 Monogram Mine M-78-222-UG C-SR-10 Mine M-77-293 EFN and IUSA have scheduled the closing of the sale transaction (the "Closing's between the companies for May 7, 8 and 9, 1997. EFN and IUSA have agreed that there will be an escrow arrangement established to facilitate this Closing. Each party to the Closing will deliver the necessary documents and funding to an escrow agent who will in turn satisfy himself that the various conditions of the Closing have been satisfied before he delivers the documents and Cunding to the various parties, thereby completing the sales transactions. - Due to various requirements for the Closing, it has been necessary to divide the permits for the Colorado operations into two groups. Group One (the Colorado DMG Permits) includes the permits for which applications to transfer and succession oC operator are pending before DMG as listed above. Group Two is comprised of the three operations listed above for which applications to transfer and succession of operator will be filed by May 7, 1997. It is the intent of the parties that the Group Two permits will be dealt with after the sale Closing. However, the Group One Permits need to be dealt with at the Closing. The parties have established the following mechanism: IUSA has established a bonding arrangement with Van-American Insurance Company ("Van-America). The reclamation bonds for the Colorado properties wiU be issued by National Union Fire Insurance Company of Pittsburgh, PA., which company is listed in the Department of Treasury's Circular 570. The bonds are on State of Colorado forms and neither [USA nor the bonding company have made any alterations to the forms. The original bonds aze being held in Denver by Ms. Sarah Finn of the Lockton Companies. Co ies of the bonds will be hand delivereA today to Lavern Lemay for DMG review and approval. As a condition (the "Escrow Condition's to placing the applicable documents and funding in the escrow account, the parties must be satisfied that the various conditions (the "Colorado Conditions"), which aze identified below, of the Closing involving the Group One Colorado DMG Permits will be met through the completion of the escrow arrangement EFN and IUSA have agreed that receipt from DMG of the "Advice of Transfer" form, attached to this letter, will satisfy the Escrow Condition. The Advice of Transfer form is submitted to DMG for its review and comment As you will note, the Advice of Transfer form anticipates that it will be executed after the bond Corms have been approved in accordance with the process outlined above. At the time the DMG executes the Advice of Transfer, the only step remaining for IUSA to complete to be approved as successor operator and Cor the transfer of the Group One Colorado DMG Permits is delivery of the on final executed and effective bonds. We request that the Advice of Transfer be executed by DMG and returned to the indicated parties as soon as possible.