GENERAL50823

• Permit No: M1994117
• IBM Index Class Name: General Documents
• Doc Date: 3/1/1996
• Doc Name: CONTRACT
• Media Type: D
• Archive: No

~ 111111111 "~(~E~ED & cD~f~DENTiA~
1111111111 ~R~~_C(.IENT~COMMU~(EATIO~!
coNTRACr RFr.F1vFn
MAR 01 1996
This Agreement between Durango Metals, Inc, ("Durango") and Newmineco LLC
("LLC") is made this 1st day of February, 199~ivision of Minerals 8 Geology
WHEREAS, Durango is a Nevada corporation, duly authorized to conduct business
in Colorado, as shown by ffie copy of the Articles of Incorporation thereof, attached as
Exhibit 1 hereto; and
WHEREAS, Durango is Lessee under three leases with three different Lessors
relating to the so-called "Mogul Mine," those leases being the "Wood" lease, dated
October 24, 1995, between Jane A. Wood and Thames Edwin Hartley, the so-called "Rugg"
lease, dated November 9, 1992, between Charles R. Rugg.and Thames Edwin Hartley; and
the so-called "Sutton" lease, dated January 31, 1995, between David C. Sutton, et al., and
Thames. Edwin Hartley, and the properties leased to Durango under said leases are
hereinafter collectively referred to as the "Mogul Mine;" and
WHEREAS, the Wood lease runs for a term of ten years from October 24, 1995; the
Rugg lease runs for a term of ten years from November 9, 1992; and the Sutton lease runs
for a term of twenty years from January 31, 1995; and
NOW, THEREFORE, in consideration of the covenants of the parties herei^
contained and for other good and valuable consideration, the receipt and adequacy whereof
are hereby expressly acknowledged, the parties agree as follows:
~`
1. Exclusive Right to Ores. Durango hereby grants to LLC the exclusive, ~,
assignable right, but not the obligation, to receive all ores mined for the terms of the said ,
Wood, Rugg, and Sutton leases, and for any renewal term of each and every of the said)
`three ]eases.
2. Minim Contract. LLC has the assignable right to employ Durango as the
miner for any one or all of each of the said three leases of the Mogul Mine, in exchange
for the fee/cost agreement for payment of actual mining costs plus 10 percent,.calculated
as set forth in the formula attached as Exhibit A hereto.
3. Ore Transport. At the request of LLC, Durango shall arrange for the
transport of any and all ores from the Mogu! Mine to the milling facility for such ore as
directed by LLC, and the costs of such ore transport shall be considered a cost of mining
as set forth in paragraph 2 immediately above.
4. Durango Permits for Mining. Durango, ttrrough its president, Thames Edwin
Hartley, represents and warrants that:
a) He is the duly authorized representative of Durango with. full and
complete authority io enter into this Agreement on behalf of Durangt5;