Laserfiche WebLink
<br />Michael B. Long <br />Division of Minerals and Ga~logy <br />May 5, 199'7 <br />Page 2 <br />Applications for Transfer and Succession of Operator will be filed by May 7, 1997 (or these <br />Operations: <br />Operation Narne Permit Number <br />Monogram-Jo Dandy Mine M-77-293 <br />Monogram Mine M-78-222-UG <br />C-SR-]0 Mine M-77-293 <br />EFN and IUSA have scheduled the closing of the sale transaction (the "Closing's between the <br />companies for May 7, 8 and 9, 1997. EFN and IUSA have agreed that there will be an escrow <br />arrangement established to facilitate this Closing. Each party to the Closing will deliver the <br />necessary documents and funding to an escrow agent who will in turn satisfy himself that the <br />various conditions of the Clo<,:ing have been satisfied before he delivers the documents and funding <br />to the various patves, thereby completing the sales transactions. - <br />Due to various requirements for the Closing, it has been necessary to divide the permits for the <br />Colorado operations into two groups. Group One (the Colorado DMG Permits) includes the <br />permits Cor which applications to transfer and succession of operator are pending before DMG as <br />listed above. Group Two is comprised of the three operations listed above for which applications <br />to transfer and succession of operator will be filed by May 7, 1997. It is the intent of the parties <br />[hat the Group Two permits will be dealt with after [he sale Closing. <br />However, the Group One Permits need to be dealt with at the Closing. The parties have <br />established the following mechanism: <br />IUSA has established a bonding arrangement with Van-American Insurance Company <br />("Van-America). The: reclamation bonds for the Colorado properties will be issued by <br />National Union Fire Insurance Company of Pittsburgh, PA., which company is listed in <br />the Department of Treasury's Circular 570. The bonds aze on State of Colorado forms and <br />neither IUSA nor the bonding company have made any alterations to the forms. The <br />original bonds are beiing held in Denver by Ms. Sarah Finn of the Lockton Companies. <br />Co ies of the bonds wilt be hand delivered today to Lavern Lemay for DMG review and <br />approval. <br />As a condition (the "Escrow Condition") to placing the applicable documents and funding <br />in [he escrow account, the parties must be satisfied that the various conditions (the <br />"Colorado Conditions"), which aze identified below, of [he Closing involving the Group <br />One Colorado DMG Permits will be met through the completion of the escrow <br />arrangement EFN and IUSA have agreed that receipt from DMG of the "Advice of <br />Transfer" form, attached to [his letter, will satisfy the Escrow Condition. The Advice of <br />Transfer form is submitted to DMG for its review and comment As you will note, the <br />Advice of Transfer form anticipates that it will be executed after the bond forms have been <br />approved in accordance with the process outlined above. At [he time the DMG executes [he <br />Advice of Transfer, the only step remaining for IUSA to complete to be approved as <br />successor operator and for the transfer of the Group One Colorado DMG Permits is <br />delivery of the on final executed and effective bonds. We request that the Advice of <br />Transfer be executed b}' DMG and returned to the indicated parties as soon as possible. <br />