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F.,_Yy!ry .. •. - ='T74.. .. ~ °t,~.£;i?i~.,:.t ~'s,1~: IF~ '~: ~^•1,'~.p `:• •"" ` :~ Michael B. Long Division of Minerals and Geology . May 5,1997 . Page 3 • As noted above, the patties must be satisfied that delivery to DMG by IUSA of the original executed and effective hoods for the Colorado DMG Permits will cause the following Colorado Ca~nditions to be satisfied: • the transfer of the Colorado DMG Permits is effective; • the designation of IUSA as "Successor Operator" is approved; and • the existing reclamation bonds for the Colorado DMG Permits will be released by DMG in due course. • Attached to the Advice of Transfer form is a Receipt form that provides the parties notice that the Colorado Conditions have been satisfied. As with the Advice of Transfer form, this form is submitted to DMG for its review and comment. • Upon receipt of the Advice of Transfer, on the initial day of Closing (scheduled to be May 7, 1997), the following events related to the Colorado DMG Permits will occur: • EFN will deliver to the Escrow Agent its Closing documentation including a formal assignment of the Colorado DMG Permits to IUSA. • IUSA will deliver to the Escrow Agent its Closing documentation including the purchase price and a statement conlitming that IUSA assumes the obligations of the licensee under the Colorado DMG Permits. • Van-American will deliver to the Escrow Agent its Closing documentation including the original executed and effective bonds for the Colorado DMG Permits. Exact copies of the bonds are attached to this letter. • On the second day of the Closing, a representative of EFN and IUSA will deliver the original executed and effective bonds for the Colorado DMG Permits to you or another representative of DMG that you might designate. • Upon delivery of the original executed and effective bonds for the Colorado DMG Permits, DMG will execute the original Receipt To a]low the sale process to be completed as expeditiously as passible, we are asking that the Receipt be signed and returned to the representative of EFN/IUSA immediately after presenunent of the bonds. • The representative of EFN and IUSA will return the Receipt to the Escrow Agent • On May 9, 1997, the purchase price and other funds/documents will be distributed to the appropriate parties, thereby completing the sale. We understand and appreciate that the process outlined herein adds to the workload of DMG staff. However, after extensive effort and review, we have been unable to create any mechanism other than the one outlined above that provides the necessary protections to EFN, IUSA, Van-American and the agencies involved.