2007-06-21_REVISION - M1982020 - Laserfiche WebLink

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IV. LEASE OFFSET RM shall drill four (4) core holes of 400 feet, or total of 1,600 feet of core, and provide all results to SLSM for its assessment during " the term of the Lease. As consideration for this drilling, SLSM agrees to credit RM at the beginning of the Agreement term with two months' worth of Lease payments. V. START UP COSTS RM agrees to pay for the cost of a complete mill assessment prior to starting work and to maintain the mill and equipment contained therein for the life of the Lease and to repair any problems that shall arise during milling operations. If mill repairs need to be performed prior to startup, SLSM will pay for half of the cost of repair parts and time in the form of milling credit. This credit will be applied towards future milling payments. Costs are to be agreed to by both SLSM and RM. Normal wear and tear on the equipment will be convered with this agreement. If it becomes necessary at any time during the terms of this Agreement to install additional equipment to meet Mine Safety a Health ("MSHA") requirements SLSM will share the cost to purchase the equipment'with RM within 30 days notice (as identified herein) by RM and RM accepts responsibility for installing the equipment at the mill. RM agrees to pay for any additional equipment required to handle the new ore during the agreement term. All safety equipment remains in the mill after the termination of this Lease and becomes the property of SLSM. At the end of this agreement, in the event that SLSM has ore to mill during the Lease Agreement when RM is not using the mill, RM at a fair price will consider milling SLSM ore. VI. INSURANCE SLSM will maintain adequate Hazard Insurance at the mill to cover the loss of its equipment and building in case of fire or natural disaster. RM shall carry comprehensive general liability insurance (occurrence type) with bodily injury, liability limit of not less than One Million Dollars ($1,000,000.00) for injury or death resulting from any none occurrence, and property damage liability limits of not less: than Five Hundred~DOllars ($500,000.00). SLSM shall be named as additional insured to RM's insurance. VII. MILL FLOWSHEET MODIFICATIONS If it becomes necessary for RM to modify the existing mill flowsheet, the parties will negotiate with each other in good faith to pay for all these modification costs. RM will hire and train all the personnel necessary to operate the mill in a safe and orderly manner and will adhere to all MSHA working area requirements. VIII. MILL RESTORATION AT END OF At the end of the Lease term. RM will will restore the mill and its contents assessment condition. The condition o confirmed by a final mill assessment: will be bore by RM. TERM notify SLSM within 60 days and to better or equal to the E the mill at that time must be costs for this assessment