EXHIBIT 10.17
AGREEMENT
THIS AGREEMENT ("Agreement") is effective as of October [7], 2002, by
and between Newmont USA Limited ("Newmont"), a Delaware corporation, doing
business as Newmont Mining Corporation; Newmont Capital Limited ("NCL"), a
Nevada corporation; Vista Gold Corporation ("Vista"), a Canadian corporation;
and Vista Nevada Corp. ("VNC"), a Nevada corporation.
RECITALS
A. Newmont leases certain unpatented mining claims pursuant to that
Lease dated October 1, 2001, as amended effective August 26, 2002 and August 29,
2002 ("Artemis Lease"), between Newmont Mining Corporation and Artemis
Exploration Company, a memorandum of which was recorded in the Elko County
Recorder's Office on September 3, 2002, at Book 2, Pages 31064-31068. Those
unpatented mining claims are more fully described in EXHIBIT 1 attached hereto,
and are referred to herein as the "Maverick Springs Property." Pursuant to
Section 1(c) of that letter agreement, dated August 30, 2002 between Newmont and
Vista, as amended (the "Letter Agreement"), the Artemis Lease was amended to
allow until November 15, 2002 to complete at least 6,400 feet of exploration
drilling on the Maverick Springs Property.
B. NCL owns a partial interest in certain unpatented mining claims,
pursuant to that Mining Deed and Assignment dated November 24, 1993, a copy of
which was recorded in the official records of the Washoe County Recorder's
Office on December 3, 1993, as Document 1738757 at Book 3917, Pages 0951-0952,
and that Quitclaim Deed dated June 30, 2000, a copy of which was recorded in the
Washoe County Recorder's Office on August 11, 2000, as Document 2472552. Those
unpatented mining claims are more fully described in EXHIBIT 2 attached hereto,
and are referred to herein as the "Mountain View Property." NCL also holds a
leasehold interest and option in the Mountain View Property pursuant to that
Lease/Option Agreement dated June 30, 2000, as amended on April 16, 2001 and
June 6, 2002 ("Wittkopp Lease"), between Franco-Nevada Mining Corporation, Inc.,
and Raymond W. and Leslie A. Wittkopp, a memorandum of which was recorded in the
Washoe County Recorder's Office on August 11, 2000, as Document 2472553. The
Maverick Springs Property and the Mountain View Property are collectively
referred to herein as the "Newmont Property."
C. Newmont and NCL desire to convey their interests in the Maverick
Springs Property and Mountain View Property and to assign their interests under
the Artemis Lease and Wittkopp Lease, and Vista and VNC desire that VNC acquire
those interests, pursuant to the terms set forth in this Agreement.
WHEREFORE, in consideration of the mutual covenants contained in this
Agreement, and other valuable consideration, the receipt of which is hereby
acknowledged by the parties, Newmont, NCL, Vista and VNC agree as follows:
ARTICLE 1. CLOSING
1.1 CLOSING DATE. Newmont, NCL, Vista and VNC shall consummate and
close the transactions contemplated by Article 1 of this Agreement, on or before
October 7, 2002 ("Closing"), at Newmont's offices located at 1700 Lincoln
Street, Denver, Colorado.
1.2 FAILURE TO CLOSE. In the event the parties fail to close the
transactions contemplated by Article 1 within the time-frame set forth in
Section 1.1, and unless otherwise agreed to in writing by the parties hereto,
this Agreement shall terminate and the parties shall have no further rights or
obligations pursuant to either this Agreement or the Letter Agreement.
1.3 TRANSFER OF NEWMONT'S AND NCL'S INTERESTS. At closing, Newmont and
NCL will transfer their interests in the Newmont Property and the Leases to VNC
as follows:
a. Newmont shall deliver to VNC an Assignment in the form of EXHIBIT 3
hereto, transferring to VNC its interest in the Artemis Lease.
b. NCL shall deliver to VNC an Assignment in the form of EXHIBIT 4
hereto, transferring to VNC its interest in the Wittkopp Lease.
c. NCL shall deliver to VNC a Quit Claim Deed in the form of EXHIBIT 5
hereto, conveying to VNC its ownership interest in the Mountain View
Property.
1.4 CASH PAYMENT. At Closing, Vista will pay to Newmont (i) Three
Hundred Thousand Dollars ($300,000.00) in cash by certified check or wire
transfer ($250,000.00 for the Maverick Springs Property and $50,000.00 for the
Mountain View Property), and (ii) Thirty Seven Thousand Three Hundred Dollars
($37,300.00) in cash by certified check or wire transfer to reimburse Newmont
for the federal maintenance fees paid on the Newmont Property for the 2003
assessment year.
1.5 SHARE TRANSFER.
a. At Closing, Vista shall issue (i) to Newmont one hundred forty-one
thousand, two hundred and forty-three (141,243) shares of common stock in
Vista; and (ii) to NCL fifty-six thousand, four hundred and ninety-seven
(56,497) shares of common stock in Vista.
b. At Closing, Vista shall also issue to Newmont one hundred forty-one
thousand, two hundred and forty-three (141,243) warrants; and (ii) to NCL
fifty-six thousand, four hundred and ninety-seven (56,497) warrants, with
each warrant to entitle
-2-
the receiving party to purchase one share of common stock in Vista for four
dollars and forty-three cents ($4.43) per share, exercisable for a period
of two years after the date of Closing.
c. The warrants and shares issued pursuant to this Section 1.5 and
Section 1.7 below shall be subject to applicable statutory restrictions on
trading when issued. Vista shall make best commercial efforts to (i)
register all said shares, at its sole cost, so that they are free-trading
within six months of the date of issuance, or (ii) obtain within 60 days of
the date of issuance, at its sole cost, a satisfactory opinion of counsel
acceptable to Newmont and NCL, stating that registration is not required or
that exemptions from registration are available.
1.6 ROYALTY DEEDS.
a. At Closing, VNC will convey to Newmont a net smelter return royalty
on mineral production from the Maverick Springs Property and the Maverick
Springs Area of Interest (as defined in EXHIBIT 6) by delivering to Newmont
a royalty deed in the form of EXHIBIT 7 to this Agreement.
b. At Closing, VNC will convey to NCL a net smelter return royalty on
mineral production from the Mountain View Property and the Mountain View
Area of Interest (as defined in EXHIBIT 8), by delivering to NCL a royalty
deed in the form of EXHIBIT 9 to this Agreement. These two royalty deeds
are collectively referred to herein as the "Royalty Deeds."
1.7 SUBSEQUENT SHARE TRANSFER.
a. On the first anniversary of Closing, Vista shall issue to Newmont
shares of common stock in Vista, the number of shares of which shall be
determined by dividing Five Hundred Thousand Dollars ($500,000.00) by the
weighted average closing price of such shares on the American Stock
Exchange averaged over the 10-day trading period ending on the day before
said first anniversary ("Weighted Average Price").
b. On the first anniversary of Closing, Vista shall also issue to
Newmont one warrant for each share issued under Section 1.7(a), with each
warrant to entitle Newmont to purchase one share of common stock in Vista
for 125% of the Weighted Average Price, exercisable for a period of two
years from the first anniversary of Closing.
ARTICLE 2. WARRANTIES AND REPRESENTATIONS
2.1 WARRANTIES AND REPRESENTATIONS.
a. Newmont and NCL represent and warrant that (i) other than the
Artemis Lease and Wittkopp Lease, they have not created any royalty
obligation with respect to the Newmont Property; (ii) they have not
encumbered, mortgaged or conveyed
-3-
their interest in the Newmont Property; and (iii) they have not received
any notice of default under the Artemis Lease or Wittkopp Lease, and, to
the best of their knowledge, the Artemis Lease and Wittkopp Lease are in
good standing.
b. Each party represents and warrants to the other parties that it is
in good standing under the laws of the jurisdiction in which it is
incorporated, and that it has all the requisite power, right and authority
to enter into this Agreement, and to perform its obligations under this
Agreement, and to commit to this Agreement. The execution and delivery of
this Agreement and the consummation of the transactions, indemnities and
guarantees provided herein have been duly and validly authorized by all
necessary corporate or company action on the part of each party.
2.2 PROPERTY AS IS. Vista and VNC acknowledge that they are being given
full access to the Newmont Property for their due diligence review. Vista and
VNC acknowledge that portions of the Newmont Property are located within a
historic mining area and may have environmental and physical conditions related
to prior mineral exploration or mining activities, including, but not limited
to, adits, shafts, waste rock piles, roads and related facilities. Prior to
closing, Vista and VNC will investigate the Newmont Property, including the
environmental conditions on that property, to their satisfaction. VNC is
acquiring Newmont's and NCL's interests in the Newmont Property "as is" without
warranty of any kind as to the condition, suitability or usability of the
Newmont Property for any purpose. The parties intend that this "as is" provision
shall be effective as to the environmental condition of the Newmont Property,
and any and all common law or statutory claims with respect thereto. Upon
closing, Vista and VNC assume the risk of any environmental contamination,
hazardous substances and other conditions on or related to the Newmont Property.
ARTICLE 3. RIGHTS AND OBLIGATIONS OF THE PARTIES
3.1 WORK COMMITMENT.
a. Vista and VNC shall perform on the Maverick Springs Property (i) at
least 20,000 feet of exploration drilling on or before the second
anniversary of Closing, and (ii) subject to VNC's rights under Section 3.3
below, at least an additional 30,000 feet of exploration drilling on or
before the fourth anniversary of Closing. The obligation of Vista and VNC
under Section 3.1(a)(i) is a firm commitment, and VNC may not exercise its
rights under Section 3.3 below with respect to any part of the Maverick
Springs Property or the Artemis Lease until after that drilling obligation
has been satisfied.
b. Vista and VNC shall perform on the Mountain View Property (i) at
least 4,000 feet of exploration drilling on or before the first anniversary
of Closing, and (ii) subject to VNC's rights under Section 3.3 below, at
least an additional 4,000 feet of exploration drilling prior to the second
anniversary of closing. The obligation of Vista and VNC under Section
3.1(b)(i) is a firm commitment, and VNC may not exercise its
-4-
rights under Section 3.3 below with respect to any part of the Mountain
View Property or the Wittkopp Lease, until after that drilling obligation
has been satisfied.
3.2 PROPERTY AND LEASE MAINTENANCE. Subject to Section 3.3 below, Vista
and VNC shall make such payment and filings, conduct such assessment work and
satisfy all other obligations necessary to keep the Artemis Lease, Wittkopp
Lease and Newmont Property in good standing, including, but not limited to
payment of federal maintenance fees for the unpatented mining claims, satisfying
any federal and state filing requirements for maintaining unpatented mining
claims, and satisfying any Lease work commitments. Upon making any such payments
or filings, Vista or VNC shall promptly deliver to Newmont a copy of the
documents that were filed, and written evidence of any payment that was made. On
or before February 1 of each calendar year, Vista or VNC shall deliver to
Newmont a written report summarizing all work that Vista or VNC completed on the
Newmont Property during the previous calendar year and including all factual
data resulting therefrom. Vista and VNC shall be jointly and severally
responsible for the obligations under this Section 3.2.
3.3 ABANDONMENT OF LEASES AND PROPERTY. VNC may terminate or abandon
its interests in the Newmont Property, the Artemis Lease and the Wittkopp Lease,
in whole or in part, only in accordance with the provisions of this Section 3.3.
a. At any time after the second anniversary of Closing and after it
completes at least 20,000 feet of drilling on the Maverick Springs
Property, VNC may terminate the Artemis Lease, in whole or in part, in
accordance with the terms thereof and the provisions of this Section 3.3.
b. At any time after it completes at least 4,000 feet of exploration
drilling on the Mountain View Property, VNC may terminate the Wittkopp
Lease, in whole or in part, in accordance with the terms thereof and the
provisions of this Section 3.3.
c. Prior to terminating either the Artemis Lease or Wittkopp Lease or
any portion thereof, or otherwise abandoning any part of the Newmont
Property, within 90 years of the effective date of this Agreement, VNC
shall notify Newmont of its intent to do so, and provide Newmont with all
factual data relating to the subject property that has not previously been
provided to Newmont. Newmont shall have 30 days from the delivery of such
notice and data, or until 90 years from the effective date of this
Agreement, whichever is sooner, to elect to have VNC's lease or ownership
rights in the subject property transferred to it. VNC shall deliver to
Newmont an assignment (and a quit claim deed, if VNC has ownership
interests) transferring to Newmont, VNC's entire interest in the subject
property, within 30 days of the delivery of Newmont's written notice
electing to receive such property. At the time VNC delivers such assignment
and/or quit claim deed, VNC shall have satisfied all obligations or
requirements that have or will become due within 60 days of the date of
delivery of the assignment and/or quit claim deed, necessary to keep the
subject Lease interest and mining claims in good standing. If Newmont
elects not to acquire such property or fails to respond to VNC's
-5-
notice and data within 30 days, VNC shall be free to terminate the
applicable Lease with respect to such property, and/or abandon such
property. The applicability of the Royalty Deeds to any property VNC
abandons shall be governed by Section 8 of the Royalty Deeds. Upon the
transfer of any interests to Newmont under this Section 3.3, Vista and VNC
shall promptly reclaim all disturbance caused by its activities on the
subject property in accordance with applicable statutory and regulatory
requirements, unless Newmont agrees in writing to assume such reclamation
obligations, in which case, Newmont shall assume such obligations in
writing, and take any other steps, such as posting a replacement bond,
necessary to relieve Vista and VNC of the performance thereof. Vista's and
VNC's obligation under Section 3.2 to maintain the Artemis Lease, Wittkopp
Lease and Newmont Property in good standing shall continue until such time
that VNC transfers its interest in such Leases and property to Newmont, or
formally terminates its leasehold interest in such property pursuant to the
terms of this Section. In the event Newmont reacquires any property
pursuant to Sections 3.3 or 3.4, Newmont shall assume the risk of any
environmental contamination, hazardous substances and other conditions on
or related to the reacquired property, except for any that relates to or
arises from Vista's or VNC's activities or operations.
3.4 RIGHT OF FIRST OFFER.
a. If, within 90 years of the effective date of this Agreement, VNC
intends to transfer all or any part of its interest, including, but not
limited to any royalty, in the Artemis Lease, Wittkopp Lease or Newmont
Property ("Offered Property"), to any person or entity, except as provided
in Section 3.4(b) below, it shall promptly notify Newmont in writing. This
notice shall specifically identify the Offered Property and shall state the
price and all other material terms and conditions of the intended transfer,
which shall be for monetary consideration only. VNC shall include with such
notice all factual data pertaining to the Offered Property, which was not
previously delivered to Newmont. Newmont shall have 30 days from the date
such notice is delivered or until 90 years from the effective date of this
Agreement, whichever is sooner, to notify VNC whether it elects to acquire
the Offered Property at the same price and on the same terms as set forth
in the notice. If Newmont does elect to acquire the Offered Property, such
closing shall occur within 30 days after notice of such election is
delivered to VNC. If Newmont fails to deliver to Vista notice of its
election to acquire the Offered Property within such 30 days, such failure
shall be deemed an election to not acquire the Offered Property. If Newmont
elects to not acquire the Offered Property, VNC shall have 180 days from
the date it delivered its notice to Newmont to complete the transfer of the
entire Offered Property to a third party at a price and on terms no less
favorable to VNC than those set forth in its notice to Newmont. If VNC
fails to complete the transfer of the entire Offered Property to a third
party within that period, Newmont's right of first refusal in the Offered
Property shall be revived. Any subsequent proposal by VNC to transfer the
Offered Property, or any part thereof, shall be conducted in accordance
with the procedures set forth in this Section. The obligations of this
Section shall apply to VNC and any successor, including affiliates or any
successor by merger. Newmont's rights under this Section 3.4(a) shall be
subordinate to any rights of first refusal or
-6-
preemptive right granted to a third-party under any joint venture
referenced in Section 3.4(b)(iv) below.
b. The provisions of Section 3.4(a) shall not apply to (i) any equity
offering made by Vista or VNC, (ii) any full or partial sale of VNC made
for purposes other than to circumvent Section 3.4(a), (iii) a transfer to
an affiliate wholly owned by Vista or VNC, and (iv) entering into a joint
venture to which VNC is a party, including a limited liability company in
which VNC is a member.
3.5 THE JOINT VENTURE OPTION.
a. Within 30 days after the fourth anniversary date of Closing, Vista
and VNC shall deliver to Newmont a written notice, which includes (i) all
factual data relating to the Newmont Property, which was not already
provided to Newmont, and (ii) a detailed written accounting of all
expenditures made by Vista and/or VNC to acquire, explore and hold the
Maverick Springs Property and the Mountain View Property (the
"Expenditures"). The Expenditures shall include the fair market value of
the shares delivered by Vista under Sections 1.5 and 1.7, which the parties
agree, for purposes of this Section 3.5, have a value of $1,000,000.00 for
the Maverick Springs Property and $200,000.00 for the Mountain View
Property. Thereafter, Newmont shall have a one-time option to elect to
enter into a joint venture with VNC that would cover the Maverick Springs
Property, the Mountain View Property or both (the "Joint Venture Option").
Newmont may elect to exercise the Joint Venture Option by delivering to VNC
written notification within 60 days of delivery of Vista's and VNC's
complete notice. During such 60 day period, Newmont shall have the right to
review and audit Vista's and VNC's books and records with respect to their
Expenditures.
b. If Newmont elects to exercise the Joint Venture Option, Newmont and
VNC shall negotiate and agree upon the terms of a joint venture agreement
("Joint Venture Agreement"), which will generally follow the form of Rocky
Mountain Mineral Law Foundation, Model Form Mining Venture Agreement, Form
5, and will include the following terms:
(i) Newmont shall pay to VNC an amount equal to two hundred
percent (200%) of the Expenditures (defined in Section 3.5 above) (the
"Expenditures Payment") by certified check or wire transfer to VNC's
account.
(ii) Upon making the Expenditures Payment, Newmont shall acquire
a fifty-one percent (51%) participating interest in the joint venture
property, and shall be the manager of the joint venture, so long as it
maintains a fifty percent (50%) or greater participating interest.
(iii) VNC and Newmont shall be required to fund all joint venture
costs and expenditures in proportion to each party's participating
interest, provided that once VNC has contributed two million dollars
($2,000,000.00) in joint venture expenditures, including its share of
management fees, Newmont would thereafter
-7-
solely fund all joint venture expenditures, until completion of a
feasibility study (as defined in EXHIBIT 10) that supports a decision
by the joint venture to put the project into production ("Development
Feasibility Study"). Once such decision is made, the parties shall
again be required to fund future joint venture expenditures in
proportion to their participating interests. VNC's contribution of 49%
of all joint venture expenditures up to a maximum of two million
dollars ($2,000,000.00), shall maintain VNC's 49% interest in the
joint venture until completion of the Development Feasibility Study.
For purposes of calculating the parties' participating interests in
the joint venture and for calculation of dilution after completion of
a Development Feasibility Study, VNC's basis in the joint venture
shall be the greater of (1) VNC's actual contributions; or (2) 49% of
the actual total expenditures made by the joint venture (both parties)
until completion of the Development Feasibility Study. In the former
case, Newmont's basis in the joint venture shall be the amount equal
to VNC's basis multiplied by 51/49. In the latter case, Newmont's
basis in the joint venture shall be 51% of the actual total
expenditures made by the joint venture (both parties) until completion
of the Development Feasibility Study.
(iv) The manager of the joint venture shall earn a management fee
from the joint venture of (i) ten percent (10%) of the joint venture
exploration expenditures during exploration (except for invoices
exceeding $50,000.00, in which case the fee would be five percent (5%)
for the amount over $50,000.00), (ii) five percent (5%) of joint
venture development expenses during development and (iii) seven
dollars ($7.00) per ounce of gold produced from the joint venture
property during production. After production commences, the management
fee will be subject to adjustment to reflect the manager's actual
costs, so that the manager makes neither a profit nor loss from being
manager.
(v) A management committee shall be formed, consisting of two
representatives from each joint venture party. The management
committee members shall have voting rights in proportion to the
parties' respective participating interests. The manager shall present
work programs and budgets to the management committee for approval. In
the event of a tie vote, the manager shall have the deciding vote.
(vi) Subject to Section 3.5(b)(iii), if either party elects not
to contribute its proportionate share to an approved program and
budget, once joint funding commences, such parties' participating
interest shall be subject to straight-line dilution. If either party
elects to contribute to an approved program and budget, but fails to
make such contribution, the amount of dilution shall be twice the
amount that would have occurred if the defaulting party had elected
not to contribute. In the event either party's participating interest
is diluted to below twenty percent (20%), it shall relinquish its
participating interest to the other party, in return for a one percent
net smelter returns royalty, as defined in the Royalty Deed. For the
initial development program and budget, following the completion of a
Development Feasibility Study, VNC shall have 180 days after
management committee approval of such program and budget, to make its
election whether to contribute and raise its share of the funds.
-8-
c. If Newmont elects to exercise the Joint Venture Option, Newmont and
VNC shall negotiate and enter into the Joint Venture Agreement within 90
days of the date of delivery of Newmont's election notice.
d. Upon execution of the Joint Venture Agreement, Newmont and/or NCL
shall reconvey to VNC their interest in the Royalty Deeds with respect to
that part of the Newmont Property that is subject to the Joint Venture
Agreement.
3.6 PREFERENTIAL PROCESSING RIGHT. VNC grants to Newmont a preferential
right to process any gold, silver or platinum group metals ("Precious Metals")
developed from or within the Newmont Property, the Maverick Springs Area of
Interest and the Mountain View Area of Interest, pursuant to the terms of this
Section. Prior to VNC commencing construction of a mine within any portion of
the Newmont Property or the Areas of Interest, which would involve milling or
the use of processing technology other than oxide heap leaching (including, but
not limited to, oxide milling for processing oxide ore, or pressure oxidation,
roasting, floatation or bioxidation for processing sulfide ore) (hereafter
"Processing"), VNC shall notify Newmont in writing, as soon as practicable, of
the intended production rates, timing and technology to be used. Newmont shall
have 60 days after the delivery of such notice, within which to notify VNC that
Newmont desires to negotiate with VNC for the use of Newmont's processing
facilities, or one or more of Newmont's proprietary (patented) processing
technologies to perform such Processing. If Newmont provides such notice to VNC,
the parties shall thereafter promptly meet and negotiate in good faith, the
terms pursuant to which Newmont would conduct such Processing. VNC shall be
under no obligation to use Newmont's technology or facilities unless the costs
are competitive with those that VNC would otherwise incur.
3.7 INDEMNITIES. Vista and VNC shall fully indemnify, defend, release
and hold harmless Newmont, NCL, their affiliates and successors, and their
officers, directors, agents, and employees from and against all loss, costs,
penalties, expense, damage and liability (including, without limitation, loss
due to injury or death, reasonable attorneys' fees, expert fees and other
expenses incurred in defending against litigation or administrative actions,
either pending or threatened), arising out of, or relating to any claim or cause
of action relating in any way to conditions, operations or other activities,
whether known or unknown, at, or in connection with the Newmont Property,
including, but not limited to environmental conditions, regardless of whether
such conditions were created before or after the date of Closing, which arises
in whole or in part under any federal, state or local law, now existing or
hereafter enacted, adopted or amended, including, without limitation, any
statutory or common law governing liability to third parties for personal injury
or property damage. In the event Newmont reacquires any part of the Newmont
Property pursuant to Sections 3.4 or 3.5, Newmont shall provide to VNC an
indemnity following the terms of this Section 3.7 with respect to any conditions
on the reacquired property, except for those arising from or relating to Vista's
or VNC's activities or operations.
-9-
3.8 SUBSEQUENT CONVEYANCE. In the event VNC conveys any interest in the
Newmont Property, the Artemis Lease or the Wittkopp Lease to any third party,
including but not limited to any affiliate or joint venturer (i) the conveyance
instrument shall expressly provide that the interest being conveyed is subject
to Newmont's and NCL's rights under this Agreement and the Royalty Deeds, and
(ii) the third party shall agree in writing with Newmont and NCL to be bound by
the provisions of this Agreement and any applicable Royalty Deeds.
ARTICLE 4. DISPUTE RESOLUTION
4.1 RIGHTS UPON DEFAULT. In the event any party defaults on any one or
more of its obligations or covenants under this Agreement, each party shall have
all of the rights and remedies provided by law, including the right of specific
performance.
4.2 ATTORNEYS FEES. In any litigation between the parties to this
Agreement or persons claiming under them resulting from, arising out of, or in
connection with this Agreement or the construction or enforcement thereof, the
substantially prevailing party or parties shall be entitled to recover from the
defaulting party or parties all reasonable costs, expenses, attorneys fees,
expert fees, and other costs of suit incurred by it in connection with such
litigation, including such costs, expenses and fees incurred prior to the
commencement of the litigation, in connection with any appeals, and in
collecting any final judgment entered therein. If a party or parties
substantially prevails on some aspects of such action, but not on others, the
court may apportion any award of costs and attorneys fees in such manner as it
deems equitable.
ARTICLE 5. GENERAL PROVISIONS
5.1 NOTICE. All notices or other communications to either party shall
be in writing and shall be sufficiently given if (i) delivered in person, (ii)
sent by electronic communication, with confirmation sent by registered or
certified mail, return receipt requested, or (iii) sent by registered or
certified mail, return receipt requested. Subject to the following sentence, all
notices shall be effective and shall be deemed delivered (i) if by personal
delivery, on the date of delivery, (ii) if by electronic communication, on the
date of receipt of the electronic communication, and (iii) if by mail, on the
date of delivery as shown on the actual receipt. If the date of such delivery or
receipt is not a business day, the notice or other communication delivered or
received shall be effective on the next business day ("business day" means a
day, other than a Saturday, Sunday or statutory holiday observed by banks in the
jurisdiction in which the intended recipient of a notice or other communication
is situated.) A party may change its address from time to time by notice to the
other party as indicated above. All notices to Newmont shall be addressed to:
Newmont USA Limited d/b/a Newmont Mining Corporation
1700 Lincoln Street, Suite 2800
Denver, CO 80203
Attn: Land Department
Telecopier No: (303) 837-5851
-10-
With a copy to:
Newmont Capital Limited
427 Ridge Street, Suite C
Reno, Nevada 89501
Attn: Royalty Land Manager
Telecopier No. (775) 784-8185
All notices to VNC shall be addressed to:
Vista Nevada Corp.
7961 Shaffer Parkway, Suite 5
Littleton, Colorado 80127
Attn: Ronald J. (Jock) McGregor
Telecopier No. (720) 981-1186
All notices to Vista shall be addressed to:
Vista Gold Corp.
7961 Shaffer Parkway, Suite 5
Littleton, Colorado 80127
Attn: Ronald J. (Jock) McGregor
Telecopier No. (720) 981-1186
5.2 INUREMENT. All covenants, conditions, indemnities, limitations, and
provisions contained in this Agreement apply to, and are binding upon the
parties to this Agreement, their heirs, representatives, successors, and
assigns. The obligations of Vista and any Affiliate under Article 3 shall run
with the subject land.
5.3 IMPLIED COVENANTS. The only implied covenants in this
Agreement are those of good faith and fair dealing.
5.4 WAIVER. No waiver of any provision of this Agreement, or waiver of
any breach of this Agreement, shall be effective unless the waiver is in writing
and is signed by the party against whom the waiver is claimed. No waiver of any
breach shall be deemed to be a waiver of any other subsequent breach.
5.5 MODIFICATION. No modification, variation, or amendment of this
Agreement shall be effective unless it is in writing and signed by all parties
to this Agreement.
5.6 ENTIRE AGREEMENT. This Agreement sets forth the entire agreement of
the parties with respect to the transactions contemplated herein and supercedes
any other agreement, representation, warranty, or undertaking, written or oral,
including the Letter Agreement.
-11-
5.7 MEMORANDUM. A memorandum of this Agreement in the form attached as
EXHIBIT 11 shall be recorded in the records of Elko County, White Pine County
and Washoe County, Nevada, promptly after execution of this Agreement. This
Agreement shall not be recorded.
5.8 CONFIDENTIALITY OF INFORMATION. Except for recording the
Assignments and Quit Claim Deed referenced in Section 1.3 above, the Royalty
Deeds and a Memorandum pursuant to Section 5.7 above, and as otherwise provided
in this Section 5.8, the terms and conditions of this Agreement shall be treated
by the parties as confidential, and no party shall reveal or otherwise disclose
such information to third parties without the prior written consent of the other
party. This restriction shall not apply to disclosures to any affiliate, to any
public or private financing agency or institution, securities regulatory
authority, to any contractors or subcontractors the parties may engage and to
employees or consultants of the parties, or to any third party to which a party
contemplates the transfer, sale, assignment, encumbrance or other disposition of
their interest in the Newmont Property, other property within the Area of
Interest or the royalty interest granted by the Royalty Deed, or with which a
party or its affiliate contemplates a merger, amalgamation or other corporate
reorganization, provided, however, that any such third party to whom disclosure
is made has a legitimate business need to know the disclosed information, and
shall first agree in writing to protect the confidential nature of such
information at least to the same extent as the parties are obligated under this
Section. In the event a party is required to disclose the terms of this
Agreement to any federal, state or local government, any court, agency or
department thereof, or any stock exchange or securities regulatory authority,
the party so required shall immediately notify the other party of such
requirement, and the proposed form and content of the disclosure. To the extent
legally permissible, such notice shall be delivered at least two business days
prior to the date of the disclosure. The non-disclosing party shall have the
right to review and comment upon the form and content of the disclosure and to
object to such disclosure to the entity seeking the information, and to seek
confidential treatment of that information by the receiving entity.
5.9 FURTHER ASSURANCES. Each of the parties agrees that it shall take
from time to time such actions and execute such additional instruments as may be
reasonably necessary or convenient to implement and carry out the intent and
purpose of this Agreement.
5.10 CONSTRUCTION. The section and paragraph headings contained in this
Agreement are for convenience only, and shall not be used in the construction of
this Agreement. The invalidity of any provision of this Agreement shall not
affect the enforceability of any other provision of this Agreement.
5.11 CURRENCY. All references to dollars herein shall mean United
States dollars.
-12-
5.12 GOVERNING LAW. This Agreement shall be governed by, interpreted
and enforced in accordance with the laws of the State of Nevada, without regard
to that State's conflicts of laws provisions.
5.13 SURVIVAL OF TERMS AND CONDITIONS. The warranties, representations,
indemnities and covenants contained in this Agreement, shall survive closing and
the recording of any conveyance documents pursuant to this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.
NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION
By: /S/ DONALD B. KARRAS
Name: Donald B. Karras
Title: Vice President
NEWMONT CAPITAL LIMITED
By: /S/ DAVID HARQUAIL
Name: David Harquail
Title: President
VISTA NEVADA CORP.
By: /S/ R.J. MCGREGOR
Name: R.J. McGregor
Title: President
VISTA GOLD CORPORATION
By: /S/ R.J. MCGREGOR
Name: R.J. McGregor
Title: President
-13-
EXHIBIT 1
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
MAVERICK SPRINGS PROPERTY
That certain Mining Lease and Agreement dated October 1, 2001 by and
between Newmont Mining Corporation and Artemis Exploration Company, as amended,
and the following described unpatented mining claims situated in Elko County and
White Pine County, Nevada:
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ----------------------------------------------------------------------------------------
WILLOW #1 968 784 NMC - 754059
WILLOW #2 968 785 NMC - 754060
WILLOW #9 968 792 NMC - 754067
WILLOW #10 968 793 NMC - 754068
WILLOW #11 968 794 NMC - 754069
WILLOW #12 968 795 NMC - 754070
WILLOW #13 968 796 NMC - 754071
WILLOW #14 968 797 NMC - 754072
WILLOW #15 968 798 NMC - 754073
WILLOW #16 968 799 NMC - 754074
WILLOW #17 968 800 NMC - 754075
WILLOW #18 968 801 NMC - 754076
WILLOW #19 968 802 NMC - 754077
WILLOW #20 968 803 NMC - 754078
WILLOW #21 968 804 NMC - 754079
WILLOW #22 968 805 NMC - 754080
WILLOW #23 968 806 NMC - 754081
WILLOW #24 968 807 NMC - 754082
WILLOW #25 968 808 NMC - 754083
WILLOW #26 968 809 NMC - 754084
WILLOW #27 968 810 NMC - 754085
WILLOW #28 968 811 NMC - 754086
WILLOW #29 968 812 NMC - 754087
WILLOW #30 968 813 NMC - 754088
WILLOW #37 968 814 NMC - 754089
WILLOW #38 968 815 NMC - 754090
WILLOW #39 968 816 NMC - 754091
WILLOW #40 968 817 NMC - 754092
WILLOW #41 968 818 NMC - 754093
WILLOW #42 968 819 NMC - 754094
WILLOW #43 968 820 NMC - 754095
WILLOW #44 968 821 NMC - 754096
WILLOW #45 968 822 NMC - 754097
WILLOW #46 968 823 NMC - 754098
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ----------------------------------------------------------------------------------------
WILLOW #47 968 824 NMC - 754099
WILLOW #48 968 825 NMC - 754100
WILLOW #49 968 826 NMC - 754101
WILLOW #50 968 827 NMC - 754102
WILLOW #51 968 828 NMC - 754103
WILLOW #52 968 829 NMC - 754104
WILLOW #53 968 830 NMC - 754105
WILLOW #54 968 831 NMC - 754106
WILLOW 55 1025 487 NMC - 785303
WILLOW 56 1025 488 NMC - 785304
WILLOW 57 1025 489 NMC - 785305
WILLOW 63 1025 495 NMC - 785311
WILLOW 65 1025 497 NMC - 785313
WILLOW 66 1025 498 NMC - 785314
WILLOW 67 1025 499 NMC - 785315
WILLOW 68 1025 500 NMC - 785316
WILLOW 69 1025 501 NMC - 785317
WILLOW 70 1025 502 NMC - 785318
WILLOW 71 1025 503 NMC - 785319
MAVERICK #1 968 832 NMC - 754107
MAVERICK #3 968 834 NMC - 754109
MAVERICK #5 968 836 NMC - 754111
MAVERICK #7 968 838 NMC - 754113
MAVERICK #8 968 839 NMC - 754114
MAVERICK #9 968 840 NMC - 754115
MAVERICK #10 968 841 NMC - 754116
MAVERICK #11 968 842 NMC - 754117
MAVERICK #12 968 843 NMC - 754118
MAVERICK #13 968 844 NMC - 754119
MAVERICK #14 968 845 NMC - 754120
MAVERICK #15 968 846 NMC - 754121
MAVERICK #16 968 847 NMC - 754122
MAVERICK #17 968 848 NMC - 754123
MAVERICK #18 968 849 NMC - 754124
MAVERICK #39 968 864 NMC - 754140
MAVERICK #40 968 865 NMC - 754141
MAVERICK #41 968 866 NMC - 754142
MAVERICK #42 968 867 NMC - 754143
MAVERICK 524 1025 475 NMC - 785291
MAVERICK 526 1025 477 NMC - 785293
MAVERICK 528 1025 479 NMC - 785295
MAVERICK 529 1025 480 NMC - 785296
MAVERICK 530 1025 481 NMC - 785297
MAVERICK 531 1025 482 NMC - 785298
MAVERICK 67 1 38907 NMC - 826140
MAVERICK 68 1 38908 NMC - 826141
MAVERICK 69 1 38909 NMC - 826142
MAVERICK 70 1 38910 NMC - 826143
MAVERICK 71 1 38911 NMC - 826144
MAVERICK 72 1 38912 NMC - 826145
-2-
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ----------------------------------------------------------------------------------------
MAVERICK 73 1 38913 NMC - 826146
MAVERICK 74 1 38914 NMC - 826147
NMS 1 - NMS 94 1 43585 - 43640 NMC - 826738 - 826831
NMS 96 1 43641 NMC - 826832
NMC 98 1 43642 NMC - 826833
NMS 100 1 43643 NMC - 826834
NMS 102 1 43644 NMC - 826835
NMS 104 1 43645 NMC - 826836
NMS 106 1 43646 NMC - 826837
NMS 107 - NMS 166 1 43647 - 43706 NMC - 826838 - 826897
-3-
EXHIBIT 2
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
MOUNTAIN VIEW PROPERTY
That certain Lease/Option Agreement effective June 30, 2000, by and
between Raymond W. and Leslie A. Wittkopp, and Franco-Nevada Mining Corporation,
Inc., as amended, and the following described unpatented lode mining claims
situated in Washoe County, Nevada:
WASHOE COUNTY
- ----------------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- ----------------------------------------------------------------------------------------------
Mt. View #1 1481 975 660347 142372
Mt. View #2 1481 976 660348 142373
Mt. View #3 1481 977 660349 142374
Mt. View #4 1481 978 660350 142375
Mt. View #5 1632 124 739181 196207
Mt. View #6 1644 549 745360 202456
Big R #1 1646 913 746334 203087
Jack 1 1797 724 821242 253233
Jack 2 1797 725 821243 253234
Jack 3 1797 726 821244 253235
Jack 4 1797 727 821245 253236
Jack 5 1797 728 821246 253237
Jack 6 1797 729 821247 253238
Jack 7 1797 730 821248 253239
Jack 8 1797 731 821249 253240
Jack 9 1797 732 821250 253241
Jack 10 1797 733 821251 253242
Jack 11 1797 734 821252 253243
Jack 12 1797 735 821253 253244
Jack 13 1797 736 821254 253245
Jack 14 1797 737 821255 253246
Jack 15 1797 738 821256 253247
Jack 35 1797 758 821276 253267
Jack 38 1797 761 821279 253270
Jack 63 1797 786 821304 253295
Jack 64 1797 787 821305 253296
Jack 65 1797 788 821306 253297
WASHOE COUNTY
- ----------------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- ----------------------------------------------------------------------------------------------
Jack 66 1797 789 821307 253298
Jack 67 1797 790 821308 253299
Jack 68 1797 791 821309 253300
Jack 69 1797 792 821310 253301
Jack 70 1797 793 821311 253302
Jack 71 1797 794 821312 253303
Jack 72 1797 795 821313 253304
Jack 73 1797 796 821314 253305
Jack 74 1797 797 821315 253306
Jack 75 1797 798 821316 253307
Jack 76 1797 799 821317 253308
Jack 78 1797 801 821319 253310
Jack 79 1797 802 821320 253311
Jack 80 1797 803 821321 253312
Jack 81 1797 804 821322 253313
Jack 82 1797 805 821323 253314
Jack 83 1797 806 821324 253315
Jack 84 1797 807 821325 253316
Jack 85 1797 808 821326 253317
Jack 86 1797 809 821327 253318
Jack 87 1797 810 821328 253319
Jack 88 1797 811 821329 253320
Jack 89 1797 812 821330 253321
Jack 90 1797 813 821331 253322
Jack 91 1797 814 821332 253323
Jack 92 1797 815 821333 253324
Jack 93 1797 816 821334 253325
Jack 94 1797 817 821335 253326
Jack 95 1797 818 821336 253327
Jack 96 1797 819 821337 253328
Harlan #1 1796 876 820863 253656
Lara #1 1796 878 820865 253657
Rich #13 2432283 814670
Rich #14 2432284 814671
Rich #15 2432285 814672
Rich #16 2432286 814673
Rich #17 2432287 814674
Rich #18 2432288 814675
Rich #21 2432289 814676
Rich #22 2432290 814677
Rich #23 2432291 814678
-2-
WASHOE COUNTY
- ----------------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- ----------------------------------------------------------------------------------------------
Rich #24 2432292 814679
Rich #39 2432293 814680
Rich 50 2432298 814685
Rich 51 2432299 814686
Rich 52 2432300 814687
Jack 67A 2516120 822239
Jack 77R 2516119 822240
Rich 61 2516129 822249
Rich 63 2516131 822251
Rich 64 2516132 822252
Rich 66 2516134 822254
Rich 68 2516136 822256
Rich 70 2516138 822258
Rich 72 2516140 822260
Rich 74 2516142 822262
Rich 76 2516144 822264
Rich 78 2516146 822266
Rich 80 2516148 822268
Rich 81 2516149 822269
Rich 82 2516150 822270
Rich 83 2516151 822271
Rich 84 2516152 822272
Rich 85 2516153 822273
Rich 86 2516154 822274
Rich 87 2516155 822275
Rich 88 2516156 822276
Rich 89 2516157 822277
Rich 90 2516158 822278
Rich 91 2516159 822279
Rich 92 2516160 822280
Rich 93 2516161 822281
Rich 94 2516162 822282
Rich 95 2516163 822283
Rich 96 2516164 822284
Rich 97 2516165 822285
Rich 98 2516166 822286
Rich 99 2516167 822287
Rich 100 2516168 822288
Rich 101 2516169 822289
Rich 102 2516170 822290
Rich 103 2516171 822291
-3-
WASHOE COUNTY
- ----------------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- ----------------------------------------------------------------------------------------------
Rich 104 2516172 822292
Rich 105 2516173 822293
Rich 106 2516174 822294
Rich 107 2516175 822295
Rich 108 2516176 822296
Rich 109 2516177 822297
Rich 110 2516178 822298
Rich 111 2516179 822299
Rich 112 2516180 822300
Rich 113 2516181 822301
Rich 114 2516182 822302
Rich 115 2516183 822303
Rich 116 2516184 822304
Rich 117 2516185 822305
Rich 118 2516186 822306
Rich 119 2516187 822307
Rich 120 2516188 822308
Rich 121 2516189 822309
-4-
EXHIBIT 3
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
ASSIGNMENT
This Assignment is effective as of October __, 2002, between Newmont
USA Limited d/b/a Newmont Mining Corporation, a Delaware corporation, whose
address is 1700 Lincoln Street, Suite 2800, Denver, Colorado 80203 ("Assignor"),
and Vista Nevada Corp., a Nevada corporation, whose address is 7961 Shaffer
Parkway, Suite 5, Littleton, Colorado 80127 ("Assignee").
RECITALS
A. Assignor leases certain unpatented mining claims pursuant to that
Lease dated October 1, 2001, as amended effective August 26, 2002, August 29,
2002, and September ____, 2002, between Assignor and Artemis Exploration
Company, a memorandum of which was recorded in the Elko County Recorder's Office
on September 3, 2002, at Book 2, Pages 31064-31068 (the "Lease"). Those
unpatented mining claims are more fully described in Exhibit A attached hereto.
B. Pursuant to that purchase agreement dated October __, 2002, between
Assignor, Newmont Capital Limited, Vista Gold Corporation and Assignee
("Agreement"), Assignor has agreed to assign its interest in the Lease to
Assignee. Assignee has agreed to acquire such rights, subject to the terms of
the Agreement and this Assignment.
Therefore, in consideration of the mutual covenants contained in this
Assignment, and other valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by the parties, and subject to the terms of the
Agreement, Assignor and Assignee agree as follows:
AGREEMENT
1. As of the effective date of this Assignment, Assignor hereby
assigns, transfers and conveys to Assignee, its successors and assigns, all of
Assignor's right, title and interest in and to the Lease.
2. Assignee assumes all of Assignor's duties, obligations and
liabilities in, to, and under, and agrees to fully perform and comply with all
covenants and terms of, the Lease.
3. The obligations of Assignee under this Assignment are in addition to
Assignee's obligations and indemnities under the Agreement.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the
date first indicated above.
NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION
By:__________________________
Name:________________________
Title:_______________________
VISTA NEVADA CORP.
By:__________________________
Name:________________________
Title:_______________________
-2-
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Newmont USA Limited d/b/a Newmont Mining Corporation.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
----------------------------------
Notary Public
My Commission
expires:__________________________
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Vista Nevada Corp.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
----------------------------------
Notary Public
My Commission
expires:__________________________
-3-
EXHIBIT A
TO ASSIGNMENT BETWEEN NEWMONT USA LIMITED
D/B/A NEWMONT MINING CORPORATION AND VISTA NEVADA CORP.
THE LEASE
That certain Mining Lease and Agreement dated October 1, 2001 by and
between Newmont Mining Corporation and Artemis Exploration Company, as amended,
covering the following described unpatented mining claims situated in Elko
County and White Pine County, Nevada:
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ----------------------------------------------------------------------------------------
WILLOW #1 968 784 NMC - 754059
WILLOW #2 968 785 NMC - 754060
WILLOW #9 968 792 NMC - 754067
WILLOW #10 968 793 NMC - 754068
WILLOW #11 968 794 NMC - 754069
WILLOW #12 968 795 NMC - 754070
WILLOW #13 968 796 NMC - 754071
WILLOW #14 968 797 NMC - 754072
WILLOW #15 968 798 NMC - 754073
WILLOW #16 968 799 NMC - 754074
WILLOW #17 968 800 NMC - 754075
WILLOW #18 968 801 NMC - 754076
WILLOW #19 968 802 NMC - 754077
WILLOW #20 968 803 NMC - 754078
WILLOW #21 968 804 NMC - 754079
WILLOW #22 968 805 NMC - 754080
WILLOW #23 968 806 NMC - 754081
WILLOW #24 968 807 NMC - 754082
WILLOW #25 968 808 NMC - 754083
WILLOW #26 968 809 NMC - 754084
WILLOW #27 968 810 NMC - 754085
WILLOW #28 968 811 NMC - 754086
WILLOW #29 968 812 NMC - 754087
WILLOW #30 968 813 NMC - 754088
WILLOW #37 968 814 NMC - 754089
WILLOW #38 968 815 NMC - 754090
WILLOW #39 968 816 NMC - 754091
WILLOW #40 968 817 NMC - 754092
WILLOW #41 968 818 NMC - 754093
WILLOW #42 968 819 NMC - 754094
WILLOW #43 968 820 NMC - 754095
WILLOW #44 968 821 NMC - 754096
WILLOW #45 968 822 NMC - 754097
WILLOW #46 968 823 NMC - 754098
WILLOW #47 968 824 NMC - 754099
WILLOW #48 968 825 NMC - 754100
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ----------------------------------------------------------------------------------------
WILLOW #49 968 826 NMC - 754101
WILLOW #50 968 827 NMC - 754102
WILLOW #51 968 828 NMC - 754103
WILLOW #52 968 829 NMC - 754104
WILLOW #53 968 830 NMC - 754105
WILLOW #54 968 831 NMC - 754106
WILLOW 55 1025 487 NMC - 785303
WILLOW 56 1025 488 NMC - 785304
WILLOW 57 1025 489 NMC - 785305
WILLOW 63 1025 495 NMC - 785311
WILLOW 65 1025 497 NMC - 785313
WILLOW 66 1025 498 NMC - 785314
WILLOW 67 1025 499 NMC - 785315
WILLOW 68 1025 500 NMC - 785316
WILLOW 69 1025 501 NMC - 785317
WILLOW 70 1025 502 NMC - 785318
WILLOW 71 1025 503 NMC - 785319
MAVERICK #1 968 832 NMC - 754107
MAVERICK #3 968 834 NMC - 754109
MAVERICK #5 968 836 NMC - 754111
MAVERICK #7 968 838 NMC - 754113
MAVERICK #8 968 839 NMC - 754114
MAVERICK #9 968 840 NMC - 754115
MAVERICK #10 968 841 NMC - 754116
MAVERICK #11 968 842 NMC - 754117
MAVERICK #12 968 843 NMC - 754118
MAVERICK #13 968 844 NMC - 754119
MAVERICK #14 968 845 NMC - 754120
MAVERICK #15 968 846 NMC - 754121
MAVERICK #16 968 847 NMC - 754122
MAVERICK #17 968 848 NMC - 754123
MAVERICK #18 968 849 NMC - 754124
MAVERICK #39 968 864 NMC - 754140
MAVERICK #40 968 865 NMC - 754141
MAVERICK #41 968 866 NMC - 754142
MAVERICK #42 968 867 NMC - 754143
MAVERICK 524 1025 475 NMC - 785291
MAVERICK 526 1025 477 NMC - 785293
MAVERICK 528 1025 479 NMC - 785295
MAVERICK 529 1025 480 NMC - 785296
MAVERICK 530 1025 481 NMC - 785297
MAVERICK 531 1025 482 NMC - 785298
MAVERICK 67 1 38907 NMC - 826140
MAVERICK 68 1 38908 NMC - 826141
MAVERICK 69 1 38909 NMC - 826142
MAVERICK 70 1 38910 NMC - 826143
MAVERICK 71 1 38911 NMC - 826144
MAVERICK 72 1 38912 NMC - 826145
MAVERICK 73 1 38913 NMC - 826146
MAVERICK 74 1 38914 NMC - 826147
-2-
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- --------------------------------------------------------------------------------
NMS 1 - NMS 94 1 43585 - 43640 NMC - 826738 - 826831
NMS 96 1 43641 NMC - 826832
NMC 98 1 43642 NMC - 826833
NMS 100 1 43643 NMC - 826834
NMS 102 1 43644 NMC - 826835
NMS 104 1 43645 NMC - 826836
NMS 106 1 43646 NMC - 826837
NMS 107 - NMS 166 1 43647 - 43706 NMC - 826838 - 826897
-3-
EXHIBIT 4
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
ASSIGNMENT
This Assignment is effective as of ______________, 2002, between
Newmont Capital Limited, a Nevada corporation, whose address is 1700 Lincoln
Street, Denver, Colorado 80203 ("Assignor"), and Vista Nevada Corp., a Nevada
corporation, whose address is 7961 Shaffer Parkway, Suite 5, Littleton, Colorado
80127 ("Assignee").
RECITALS
A. Assignor leases certain unpatented mining claims pursuant to that
Lease/Option Agreement dated June 30, 2000, as amended on April 16, 2001 and
June 6, 2002, between Franco-Nevada Mining Corporation, Inc. and Raymond W. and
Leslie A. Wittkopp, a memorandum of which was recorded in the Washoe County
Recorder's Office on August 11, 2000, as Document 2472553 (the "Lease"). Those
unpatented mining claims are more fully described in Exhibit A hereto.
B. Pursuant to that agreement dated October __, 2002, by and between
Assignor, Newmont USA Limited d/b/a Newmont Mining Corporation, Vista Gold
Corporation and Assignee, Assignor agreed to convey its interest in the Lease to
Assignee and Assignee agreed to acquire that interest, subject to the terms of
the Agreement and this Assignment.
Therefore, in consideration of the mutual covenants contained in this
Assignment, and other valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by the parties, and subject to the terms of the
Agreement, Assignor and Assignee agree as follows:
AGREEMENT
1. As of the effective date of this Assignment, Assignor hereby
assigns, transfers and conveys to Assignee, its successors and assigns, all of
Assignor's right, title, and interest in and to the Lease.
2. Assignee assumes all of Assignor's duties, obligations, and
liabilities in, to, and under, and agrees to fully perform and comply with all
covenants and terms of, the Lease.
3. The obligations of Assignee under this Assignment are in addition to
Assignee's obligations and indemnities under the Agreement.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the
date first indicated above.
NEWMONT CAPITAL LIMITED
By:__________________________
Name:________________________
Title:_______________________
VISTA NEVADA CORP.
By:__________________________
Name:________________________
Title:_______________________
-2-
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
Newmont Capital Limited.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
----------------------------------
Notary Public
My Commission
expires:__________________________
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Vista Nevada Corp.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
----------------------------------
Notary Public
My Commission
expires:__________________________
-3-
EXHIBIT A
TO ASSIGNMENT BETWEEN NEWMONT CAPITAL LIMITED
AND VISTA NEVADA CORP.
THE LEASE
That certain Lease/Option Agreement effective June 30, 2000, by and
between Raymond W. and Leslie A. Wittkopp, and Franco-Nevada Mining Corporation,
Inc., as amended, covering the following described unpatented lode mining claims
situated in Washoe County, Nevada:
WASHOE COUNTY
- -----------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- -----------------------------------------------------------------------------------------
Mt. View #1 1481 975 660347 142372
Mt. View #2 1481 976 660348 142373
Mt. View #3 1481 977 660349 142374
Mt. View #4 1481 978 660350 142375
Mt. View #5 1632 124 739181 196207
Mt. View #6 1644 549 745360 202456
Big R #1 1646 913 746334 203087
Jack 1 1797 724 821242 253233
Jack 2 1797 725 821243 253234
Jack 3 1797 726 821244 253235
Jack 4 1797 727 821245 253236
Jack 5 1797 728 821246 253237
Jack 6 1797 729 821247 253238
Jack 7 1797 730 821248 253239
Jack 8 1797 731 821249 253240
Jack 9 1797 732 821250 253241
Jack 10 1797 733 821251 253242
Jack 11 1797 734 821252 253243
Jack 12 1797 735 821253 253244
Jack 13 1797 736 821254 253245
Jack 14 1797 737 821255 253246
Jack 15 1797 738 821256 253247
Jack 35 1797 758 821276 253267
Jack 38 1797 761 821279 253270
Jack 63 1797 786 821304 253295
Jack 64 1797 787 821305 253296
Jack 65 1797 788 821306 253297
Jack 66 1797 789 821307 253298
Jack 67 1797 790 821308 253299
WASHOE COUNTY
- --------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------
Jack 68 1797 791 821309 253300
Jack 69 1797 792 821310 253301
Jack 70 1797 793 821311 253302
Jack 71 1797 794 821312 253303
Jack 72 1797 795 821313 253304
Jack 73 1797 796 821314 253305
Jack 74 1797 797 821315 253306
Jack 75 1797 798 821316 253307
Jack 76 1797 799 821317 253308
Jack 78 1797 801 821319 253310
Jack 79 1797 802 821320 253311
Jack 80 1797 803 821321 253312
Jack 81 1797 804 821322 253313
Jack 82 1797 805 821323 253314
Jack 83 1797 806 821324 253315
Jack 84 1797 807 821325 253316
Jack 85 1797 808 821326 253317
Jack 86 1797 809 821327 253318
Jack 87 1797 810 821328 253319
Jack 88 1797 811 821329 253320
Jack 89 1797 812 821330 253321
Jack 90 1797 813 821331 253322
Jack 91 1797 814 821332 253323
Jack 92 1797 815 821333 253324
Jack 93 1797 816 821334 253325
Jack 94 1797 817 821335 253326
Jack 95 1797 818 821336 253327
Jack 96 1797 819 821337 253328
Harlan #1 1796 876 820863 253656
Lara #1 1796 878 820865 253657
Rich #13 2432283 814670
Rich #14 2432284 814671
Rich #15 2432285 814672
Rich #16 2432286 814673
Rich #17 2432287 814674
Rich #18 2432288 814675
Rich #21 2432289 814676
Rich #22 2432290 814677
Rich #23 2432291 814678
Rich #24 2432292 814679
Rich #39 2432293 814680
-2-
WASHOE COUNTY
- -------------------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- -------------------------------------------------------------------------------------------------
Rich 50 2432298 814685
Rich 51 2432299 814686
Rich 52 2432300 814687
Jack 67A 2516120 822239
Jack 77R 2516119 822240
Rich 61 2516129 822249
Rich 63 2516131 822251
Rich 64 2516132 822252
Rich 66 2516134 822254
Rich 68 2516136 822256
Rich 70 2516138 822258
Rich 72 2516140 822260
Rich 74 2516142 822262
Rich 76 2516144 822264
Rich 78 2516146 822266
Rich 80 2516148 822268
Rich 81 2516149 822269
Rich 82 2516150 822270
Rich 83 2516151 822271
Rich 84 2516152 822272
Rich 85 2516153 822273
Rich 86 2516154 822274
Rich 87 2516155 822275
Rich 88 2516156 822276
Rich 89 2516157 822277
Rich 90 2516158 822278
Rich 91 2516159 822279
Rich 92 2516160 822280
Rich 93 2516161 822281
Rich 94 2516162 822282
Rich 95 2516163 822283
Rich 96 2516164 822284
Rich 97 2516165 822285
Rich 98 2516166 822286
Rich 99 2516167 822287
Rich 100 2516168 822288
Rich 101 2516169 822289
Rich 102 2516170 822290
Rich 103 2516171 822291
Rich 104 2516172 822292
Rich 105 2516173 822293
-3-
WASHOE COUNTY
- -------------------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- -------------------------------------------------------------------------------------------------
Rich 106 2516174 822294
Rich 107 2516175 822295
Rich 108 2516176 822296
Rich 109 2516177 822297
Rich 110 2516178 822298
Rich 111 2516179 822299
Rich 112 2516180 822300
Rich 113 2516181 822301
Rich 114 2516182 822302
Rich 115 2516183 822303
Rich 116 2516184 822304
Rich 117 2516185 822305
Rich 118 2516186 822306
Rich 119 2516187 822307
Rich 120 2516188 822308
Rich 121 2516189 822309
-4-
EXHIBIT 5
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
QUIT CLAIM DEED
This Quit Claim Deed is between Newmont Capital Limited, a Nevada
corporation, 1700 Lincoln Street, Suite 2800, Denver, Colorado 80203
("Grantor"), and Vista Nevada Corp., a Nevada corporation, 7961 Shaffer Parkway,
Suite 5, Littleton, Colorado 80127 ("Grantee").
For valuable consideration, the sufficiency of which is hereby
acknowledged, Grantor conveys and quit claims to Grantee, Grantor's entire
ownership interest in those unpatented mining claims located in Washoe County,
Nevada, that are described in Exhibit A to this Quit Claim Deed.
Dated this ___ day of October, 2002.
NEWMONT CAPITAL LIMITED
By:__________________________
Name:________________________
Title:_______________________
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Newmont Capital Limited.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
----------------------------------
Notary Public
My Commission
expires:__________________________
-2-
EXHIBIT A
TO QUIT CLAIM DEED BETWEEN
NEWMONT CAPITAL LIMITED AND VISTA NEVADA CORP.
WASHOE COUNTY
- ------------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- ------------------------------------------------------------------------------------------
Mt. View #1 1481 975 660347 142372
Mt. View #2 1481 976 660348 142373
Mt. View #3 1481 977 660349 142374
Mt. View #4 1481 978 660350 142375
Mt. View #5 1632 124 739181 196207
Mt. View #6 1644 549 745360 202456
Big R #1 1646 913 746334 203087
Jack 1 1797 724 821242 253233
Jack 2 1797 725 821243 253234
Jack 3 1797 726 821244 253235
Jack 4 1797 727 821245 253236
Jack 5 1797 728 821246 253237
Jack 6 1797 729 821247 253238
Jack 7 1797 730 821248 253239
Jack 8 1797 731 821249 253240
Jack 9 1797 732 821250 253241
Jack 10 1797 733 821251 253242
Jack 11 1797 734 821252 253243
Jack 12 1797 735 821253 253244
Jack 13 1797 736 821254 253245
Jack 14 1797 737 821255 253246
Jack 15 1797 738 821256 253247
Jack 35 1797 758 821276 253267
Jack 38 1797 761 821279 253270
Jack 63 1797 786 821304 253295
Jack 64 1797 787 821305 253296
Jack 65 1797 788 821306 253297
Jack 66 1797 789 821307 253298
Jack 67 1797 790 821308 253299
Jack 68 1797 791 821309 253300
Jack 69 1797 792 821310 253301
Jack 70 1797 793 821311 253302
Jack 71 1797 794 821312 253303
Jack 72 1797 795 821313 253304
Jack 73 1797 796 821314 253305
Jack 74 1797 797 821315 253306
Jack 75 1797 798 821316 253307
WASHOE COUNTY
- ---------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- ---------------------------------------------------------------------------------
Jack 76 1797 799 821317 253308
Jack 78 1797 801 821319 253310
Jack 79 1797 802 821320 253311
Jack 80 1797 803 821321 253312
Jack 81 1797 804 821322 253313
Jack 82 1797 805 821323 253314
Jack 83 1797 806 821324 253315
Jack 84 1797 807 821325 253316
Jack 85 1797 808 821326 253317
Jack 86 1797 809 821327 253318
Jack 87 1797 810 821328 253319
Jack 88 1797 811 821329 253320
Jack 89 1797 812 821330 253321
Jack 90 1797 813 821331 253322
Jack 91 1797 814 821332 253323
Jack 92 1797 815 821333 253324
Jack 93 1797 816 821334 253325
Jack 94 1797 817 821335 253326
Jack 95 1797 818 821336 253327
Jack 96 1797 819 821337 253328
Harlan #1 1796 876 820863 253656
Lara #1 1796 878 820865 253657
Rich #13 2432283 814670
Rich #14 2432284 814671
Rich #15 2432285 814672
Rich #16 2432286 814673
Rich #17 2432287 814674
Rich #18 2432288 814675
Rich #21 2432289 814676
Rich #22 2432290 814677
Rich #23 2432291 814678
Rich #24 2432292 814679
Rich #39 2432293 814680
Rich 50 2432298 814685
Rich 51 2432299 814686
Rich 52 2432300 814687
Jack 67A 2516120 822239
Jack 77R 2516119 822240
Rich 61 2516129 822249
Rich 63 2516131 822251
Rich 64 2516132 822252
-2-
WASHOE COUNTY
- --------------------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------------------
Rich 66 2516134 822254
Rich 68 2516136 822256
Rich 70 2516138 822258
Rich 72 2516140 822260
Rich 74 2516142 822262
Rich 76 2516144 822264
Rich 78 2516146 822266
Rich 80 2516148 822268
Rich 81 2516149 822269
Rich 82 2516150 822270
Rich 83 2516151 822271
Rich 84 2516152 822272
Rich 85 2516153 822273
Rich 86 2516154 822274
Rich 87 2516155 822275
Rich 88 2516156 822276
Rich 89 2516157 822277
Rich 90 2516158 822278
Rich 91 2516159 822279
Rich 92 2516160 822280
Rich 93 2516161 822281
Rich 94 2516162 822282
Rich 95 2516163 822283
Rich 96 2516164 822284
Rich 97 2516165 822285
Rich 98 2516166 822286
Rich 99 2516167 822287
Rich 100 2516168 822288
Rich 101 2516169 822289
Rich 102 2516170 822290
Rich 103 2516171 822291
Rich 104 2516172 822292
Rich 105 2516173 822293
Rich 106 2516174 822294
Rich 107 2516175 822295
Rich 108 2516176 822296
Rich 109 2516177 822297
Rich 110 2516178 822298
Rich 111 2516179 822299
Rich 112 2516180 822300
Rich 113 2516181 822301
-3-
WASHOE COUNTY
- --------------------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------------------
Rich 114 2516182 822302
Rich 115 2516183 822303
Rich 116 2516184 822304
Rich 117 2516185 822305
Rich 118 2516186 822306
Rich 119 2516187 822307
Rich 120 2516188 822308
Rich 121 2516189 822309
-4-
EXHIBIT 6
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
MAVERICK SPRINGS AREA OF INTEREST
The Maverick Springs Area of Interest includes all land situated within one
mile from the exterior boundary of the following unpatented mining claims as
they were located as of October 1, 2001:
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ----------------------------------------------------------------------------------------
WILLOW #1 968 784 NMC - 754059
WILLOW #2 968 785 NMC - 754060
WILLOW #9 968 792 NMC - 754067
WILLOW #10 968 793 NMC - 754068
WILLOW #11 968 794 NMC - 754069
WILLOW #12 968 795 NMC - 754070
WILLOW #13 968 796 NMC - 754071
WILLOW #14 968 797 NMC - 754072
WILLOW #15 968 798 NMC - 754073
WILLOW #16 968 799 NMC - 754074
WILLOW #17 968 800 NMC - 754075
WILLOW #18 968 801 NMC - 754076
WILLOW #19 968 802 NMC - 754077
WILLOW #20 968 803 NMC - 754078
WILLOW #21 968 804 NMC - 754079
WILLOW #22 968 805 NMC - 754080
WILLOW #23 968 806 NMC - 754081
WILLOW #24 968 807 NMC - 754082
WILLOW #25 968 808 NMC - 754083
WILLOW #26 968 809 NMC - 754084
WILLOW #27 968 810 NMC - 754085
WILLOW #28 968 811 NMC - 754086
WILLOW #29 968 812 NMC - 754087
WILLOW #30 968 813 NMC - 754088
WILLOW #37 968 814 NMC - 754089
WILLOW #38 968 815 NMC - 754090
WILLOW #39 968 816 NMC - 754091
WILLOW #40 968 817 NMC - 754092
WILLOW #41 968 818 NMC - 754093
WILLOW #42 968 819 NMC - 754094
WILLOW #43 968 820 NMC - 754095
WILLOW #44 968 821 NMC - 754096
WILLOW #45 968 822 NMC - 754097
WILLOW #46 968 823 NMC - 754098
WILLOW #47 968 824 NMC - 754099
WILLOW #48 968 825 NMC - 754100
WILLOW #49 968 826 NMC - 754101
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ----------------------------------------------------------------------------------------
WILLOW #50 968 827 NMC - 754102
WILLOW #51 968 828 NMC - 754103
WILLOW #52 968 829 NMC - 754104
WILLOW #53 968 830 NMC - 754105
WILLOW #54 968 831 NMC - 754106
WILLOW 55 1025 487 NMC - 785303
WILLOW 56 1025 488 NMC - 785304
WILLOW 57 1025 489 NMC - 785305
WILLOW 63 1025 495 NMC - 785311
WILLOW 65 1025 497 NMC - 785313
WILLOW 66 1025 498 NMC - 785314
WILLOW 67 1025 499 NMC - 785315
WILLOW 68 1025 500 NMC - 785316
WILLOW 69 1025 501 NMC - 785317
WILLOW 70 1025 502 NMC - 785318
WILLOW 71 1025 503 NMC - 785319
MAVERICK #1 968 832 NMC - 754107
MAVERICK #3 968 834 NMC - 754109
MAVERICK #5 968 836 NMC - 754111
MAVERICK #7 968 838 NMC - 754113
MAVERICK #8 968 839 NMC - 754114
MAVERICK #9 968 840 NMC - 754115
MAVERICK #10 968 841 NMC - 754116
MAVERICK #11 968 842 NMC - 754117
MAVERICK #12 968 843 NMC - 754118
MAVERICK #13 968 844 NMC - 754119
MAVERICK #14 968 845 NMC - 754120
MAVERICK #15 968 846 NMC - 754121
MAVERICK #16 968 847 NMC - 754122
MAVERICK #17 968 848 NMC - 754123
MAVERICK #18 968 849 NMC - 754124
MAVERICK #39 968 864 NMC - 754140
MAVERICK #40 968 865 NMC - 754141
MAVERICK #41 968 866 NMC - 754142
MAVERICK #42 968 867 NMC - 754143
MAVERICK 524 1025 475 NMC - 785291
MAVERICK 526 1025 477 NMC - 785293
MAVERICK 528 1025 479 NMC - 785295
MAVERICK 529 1025 480 NMC - 785296
MAVERICK 530 1025 481 NMC - 785297
MAVERICK 531 1025 482 NMC - 785298
MAVERICK 67 1 38907 NMC - 826140
MAVERICK 68 1 38908 NMC - 826141
MAVERICK 69 1 38909 NMC - 826142
MAVERICK 70 1 38910 NMC - 826143
MAVERICK 71 1 38911 NMC - 826144
MAVERICK 72 1 38912 NMC - 826145
MAVERICK 73 1 38913 NMC - 826146
MAVERICK 74 1 38914 NMC - 826147
-2-
EXHIBIT 7
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
ROYALTY DEED
This Royalty Deed (hereafter, the "Deed"), effective as of the __ day
of October, 2002, is by and between Vista Nevada Corp., a Nevada corporation,
whose address is 7961 Shaffer Parkway, Suite 5, Littleton, Colorado 80127
("Grantor") and Newmont USA Limited d/b/a Newmont Mining Corporation, a Delaware
corporation, whose address is 1700 Lincoln Street, Denver, Colorado 80203
("Newmont").
Whereas, pursuant to that Agreement, dated October __, 2002, between
Grantor, Vista Gold Corporation, Newmont and Newmont Capital Limited (the
"Agreement"), Newmont has conveyed to Grantor, its interest in the Property
(defined below);
Now, therefore, Grantor, for and in consideration of the sum of $10.00
lawful money of the United States of America, together with other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, has remised, released, sold, transferred, conveyed and
quitclaimed, and by these presents does remise, release, sell, transfer, convey
and forever quitclaim unto Newmont a production royalty (the "Production
Royalty") on production of Minerals from the Property. For purposes of this
Deed, the term "Mineral(s)" shall mean any and all metals, minerals and mineral
rights of whatever kind and nature in, under or upon the surface or subsurface
of the Property (including, without limitation metals, precious metals, base
metals, industrial minerals, gems, diamonds, commercially valuable rock,
aggregate, clays and diatomaceous earth, hydrocarbons, and oil and gas, and
other minerals which are mined, excavated, extracted or otherwise recovered).
1. PROPERTY SUBJECT TO PRODUCTION ROYALTY. The Production Royalty shall
be a royalty interest in and a burden upon the property more particularly
described on EXHIBIT A to this Deed (the "Property").
2. PRODUCTION ROYALTY. Grantor shall pay to Newmont a perpetual
Production Royalty in an amount equal to one and one half percent (1 1/2%) of
Net Smelter Returns (defined below) from the sale or other disposition of all
Minerals produced and sold from the Property, determined in accordance with the
provisions set forth in this Deed.
(a) FOR PRECIOUS METALS. Net Smelter Returns, in the case of gold,
silver, and platinum group metals ("Precious Metals"), shall be determined
by multiplying (i) the gross number of troy ounces of Precious Metals
contained in the production from the Property ("Monthly Production")
delivered to the smelter, refiner, processor, purchaser or other recipient
of such production, or an insurer as a result of casualty to such
production (collectively, "Payor") during the preceding calendar month,
by (ii) for gold, the average of the London Bullion Market, Afternoon Fix,
spot prices for the preceding calendar month and for all other Precious
Metals, the average of the New York Commodities Exchange final spot prices
for the preceding calendar month for the particular Mineral for which the
price is being determined, and subtracting from the product of (i) and (ii)
only the following if actually incurred:
(A) charges imposed by the Payor for refining bullion from dore
or concentrates of Precious Metals ("Beneficiated Precious Metals")
produced by Grantor's final mill or other final processing plant;
however, charges imposed by the Payor for smelting or refining of raw
or crushed ore containing Precious Metals or other preliminarily
processed Precious Metals shall not be subtracted in determining Net
Smelter Returns;
(B) penalty substance, assaying, and sampling charges imposed by
the Payor for refining Beneficiated Precious Metals contained in such
production; and
(C) charges and costs, if any, for transportation and insurance
of Beneficiated Precious Metals from Grantor's mill or other final
processing plant to places where such Beneficiated Precious Metals are
smelted, refined and/or sold or otherwise disposed of; and
In the event the refining of bullion from the Beneficiated Precious Metals
contained in such production is carried out in custom toll facilities owned or
controlled, in whole or in part, by Grantor, which facilities were not
constructed for the purpose of refining Beneficiated Precious Metals or other
Minerals from the Property, then charges, costs and penalties for such refining
shall mean the amount Grantor would have incurred if such refining were carried
out at facilities not owned or controlled by Grantor then offering comparable
services for comparable products on prevailing terms, but in no event greater
than actual costs incurred by Grantor with respect to such refining.
In the event Grantor receives insurance proceeds for loss of production, Grantor
shall pay to Newmont the Royalty percentage of any such insurance proceeds which
are received by Grantor for such loss of production.
(b) FOR OTHER MINERALS. Net Smelter Returns, in the case of all
Minerals other than Precious Metals and the beneficiated products thereof
("Other Minerals"), shall be determined by multiplying (i) the gross amount
of the particular Other Mineral contained in the Monthly Production
delivered to the Payor during the preceding calendar month by (ii) the
average of the New York Commodities Exchange final daily spot prices for
the preceding calendar month of the appropriate Other Mineral, and
subtracting from the product of (i) and (ii) only the following if actually
incurred:
(A) charges imposed by the Payor for smelting, refining or
processing Other Minerals contained in such production, but excluding
any and all charges and costs related to Grantor's mills or other
processing plants constructed for the purpose of milling or processing
Other Minerals, in whole or in part;
-2-
(B) penalty substance, assaying, and sampling charges imposed by
the Payor for smelting, refining, or processing Other Minerals
contained in such production, but excluding any and all charges and
costs of or related to Grantor's mills or other processing plants
constructed for the purpose of milling or processing Other Minerals,
in whole or in part; and
(C) charges and costs, if any, for transportation and insurance
of Other Minerals and the beneficiated products thereof from Grantor's
final mill or other final processing plant to places where such
Beneficiated Precious Metals are smelted, refined and/or sold or
otherwise disposed of.
In the event smelting, refining, or processing of Other Minerals are carried out
in custom toll facilities owned or controlled, in whole or in part, by Grantor,
which facilities were not constructed for the purpose of milling or processing
Other Minerals, then charges, costs and penalties for such smelting, refining or
processing shall mean the amount Grantor would have incurred if such smelting,
refining or processing were carried out at facilities not owned or controlled by
Grantor then offering comparable services for comparable products on prevailing
terms, but in no event greater than actual costs incurred by Grantor with
respect to such smelting and refining.
In the event Grantor receives insurance proceeds for loss of production, Grantor
shall pay to Newmont the Royalty percentage of any such insurance proceeds which
are received by Grantor for such loss of production.
(c) PAYMENTS OF ROYALTY IN CASH OR IN KIND. Royalty payments shall be
made to Newmont as follows:
(i) ROYALTY IN KIND. Newmont may elect to receive its Royalty on
Precious Metals from the Property "in cash" or "in kind" as refined
bullion. The election may be exercised once per year on a calendar
year basis during the life of production from the Property. Notice of
election to receive the following year's Royalty for Precious Metals
in cash or in kind shall be made in writing by Newmont and delivered
to Grantor on or before November 1 of each year. In the event no
written election is made, the Royalty for Precious Metals will
continue to be paid as it is then being paid. As of the date of this
Deed, Newmont elects to receive its Royalty on Precious Metals "in
cash." Royalties on Other Minerals shall not be payable in kind.
(A) If Newmont elects to receive its Royalty for Precious
Metals in kind, Newmont shall open a bullion storage account at
each refinery or mint designated by Grantor as a possible
recipient of refined bullion in which Newmont owns an interest.
Newmont shall be solely responsible for all costs and liabilities
associated with maintenance of such account or accounts, and
Grantor shall not be required to bear any additional expense with
respect to such in-kind payments.
(B) Royalty will be paid by the deposit of refined bullion
into Newmont's account. On or before the 25th day of each
calendar month following a calendar month during which production
and sale or other disposition
-3-
occurred, Grantor shall deliver written instructions to the mint
or refinery, with a copy to Newmont, directing the mint or
refinery to deliver refined bullion due to Newmont in respect of
the Royalty, by crediting to Newmont's account the number of
ounces of refined bullion for which Royalty is due; PROVIDED,
HOWEVER, that the words "other disposition" as used in this Deed
shall not include processing, milling, beneficiation or refining
losses of Precious Metals. The number of ounces of refined
bullion to be credited will be based upon Newmont's share of the
previous month's production and sale or other disposition as
calculated pursuant to the commingling provisions of Section 2(f)
hereof.
(C) Royalty payable in kind on silver or platinum group
metals shall be converted to the gold equivalent of such silver
or platinum group metals by using the average monthly spot prices
for Precious Metals described in Section 2(a).
(D) Title to refined bullion delivered to Newmont under this
Deed shall pass to Newmont at the time such bullion is credited
to Newmont's account at the mint or refinery.
(E) Newmont agrees to hold harmless Grantor from any
liability imposed as a result of the election of Newmont to
receive Royalty in kind and from any losses incurred as a result
of Newmont's trading and hedging activities. Newmont assumes all
responsibility for any shortages which occur as a result of
Newmont's anticipation of credits to its account in advance of an
actual deposit or credit to its account by a refiner or mint.
(F) When royalties are paid in kind, they will not reflect
the costs deductible in calculating "Net Smelter Returns" under
this Deed. Within 15 days of the receipt of a statement showing
charges incurred by Grantor for transportation, smelting or other
deductible costs, Newmont shall remit to Grantor full payment for
such charges. If Newmont does not pay such charges when due,
Grantor shall have the right, at its election, to deduct the gold
equivalent of such charges from the ounces of gold bullion to be
credited to Newmont in the following month.
(ii) IN CASH. If Newmont elects to receive its Royalty
for Precious Metals in cash, and as to Royalty payable on
Other Minerals, payments shall be payable on or before the
twenty-fifth (25th) day of the month following the calendar
month in which the Minerals subject to the Royalty were
shipped to the Payor by Grantor. For purposes of calculating
the cash amount due to Newmont, Precious Metals and Other
Minerals will be deemed to have been sold or otherwise
disposed of at the time refined production from Property is
delivered, made available, or credited to Grantor by a mint
or refiner. The price used for calculating the cash amount
due for Royalty on Precious Metals or Other Minerals shall
be determined in accordance with Section 2(a) and (b) as
applicable. Grantor shall make each Royalty payment to be
paid in cash by delivery of a check or draft payable to
Newmont and delivering the check to Grantor at its address
listed in Section 9(h). Newmont hereby waives and agrees to
hold Grantor
-4-
harmless against, and binds its successors and assigns to
waive and hold Grantor harmless against, any claim by any
other party to any Royalty paid by Grantor as herein
provided.
(iii) DETAILED STATEMENT. All Royalty payments or
credits shall be accompanied by a detailed statement
explaining the calculation thereof together with any
available settlement sheets from the Payor.
(d) MONTHLY RECONCILIATION.
(i) On or before the 25th day of the month, Grantor shall make an
interim settlement based on the information then available of such Royalty,
either in cash or in kind, whichever is applicable, by paying (A) not less
than one hundred percent (100%) of the anticipated final settlement of
Precious Metals in kind Royalty payments and (B) not less than ninety-five
percent (95%) of the anticipated final settlement of cash Royalty payments.
(ii) The parties recognize that a period of time exists between the
production of ore, the production of dore or concentrates from ore, the
production of refined or finished product from dore or concentrates, and
the receipt of Payor's statements for refined or finished product. As a
result, the payment of Royalty will not coincide exactly with the actual
amount of refined or finished product produced from the Property for the
previous month. Grantor will provide final reconciliation promptly after
settlement is reached with the Payor for all lots sold or subject to other
disposition in any particular month.
(iii) In the event that Newmont has been underpaid for any provisional
payment (whether in cash or in kind), Grantor shall pay the difference in
cash by check and not in kind with such payment being made at the time of
the final reconciliation. If Newmont has been overpaid in the previous
calendar quarter, Newmont shall make a payment to Grantor of the difference
by check. Reconciliation payments shall be made on the same basis as used
for the payment in cash pursuant to Section 2(c)(ii).
(e) HEDGING TRANSACTIONS. All profits and losses resulting from Grantor's
sales of Precious Metals, or Grantor's engaging in any commodity futures
trading, option trading, or metals trading, or any combination thereof, and any
other hedging transactions including trading transactions designed to avoid
losses and obtain possible gains due to metal price fluctuations (collectively,
"hedging transactions") are specifically excluded from Royalty calculations
pursuant to this Deed. All hedging transactions by Grantor and all profits or
losses associated therewith, if any, shall be solely for Grantor's account.
The Royalty payable on Precious Metals or Other Minerals subject to hedging
transactions shall be determined as follows:
(i) AFFECTING PRECIOUS METALS. The amount of Royalty to be paid on all
Precious Metals subject to hedging transactions by Grantor shall be
determined in the same manner as provided in Section 2(a), with the
understanding that
-5-
the average monthly spot price shall be for the calendar month preceding
the calendar month during which Precious Metals subject to hedging
transactions are shipped by Grantor to the Payor.
(ii) AFFECTING OTHER MINERALS. The amount of Royalty to be paid on all
Other Minerals subject to hedging transactions by Grantor shall be
determined in the same manner as provided in Section 2(b), with the
understanding that the average monthly spot price shall be for the calendar
month preceding the calendar month during which Other Minerals subject to
hedging transactions are shipped to the Payor.
(f) COMMINGLING. Grantor shall have the right to commingle Minerals from
the Property with minerals from other properties. Before any Precious Metals or
Other Minerals produced from the Property are commingled with minerals from
other properties, the Precious Metals or Other Minerals produced from the
Property shall be measured and sampled in accordance with sound mining and
metallurgical practices for moisture, metal, commercial minerals and other
appropriate content. Representative samples of the Precious Metals or Other
Minerals shall be retained by Grantor and assays (including moisture and penalty
substances) and other appropriate analyses of these samples shall be made before
commingling to determine gross metal content of Precious Metals or gross metal
or mineral content of Other Minerals. Grantor shall retain such analyses for a
reasonable amount of time, but not less than eighteen (18) months, after receipt
by Newmont of the Royalty paid with respect to such commingled Minerals from the
Property; and shall retain such samples taken from the Property for seven (7)
days after collection.
(g) NO OBLIGATION TO MINE. Grantor shall have sole discretion to determine
the extent of its mining of the Property and the time or the times for
beginning, continuing or resuming mining operations with respect thereto.
Grantor shall have no obligation to Newmont or otherwise to mine any of the
Property, nor shall it have any obligation to diligently explore or develop the
Property.
3. BOOKS, RECORDS, INSPECTIONS, CONFIDENTIALITY AND PRESS RELEASES.
(a) Not later than March 15 following the end of each calendar year,
Grantor shall provide Newmont with an annual report of activities and operations
conducted with respect to the Property during the preceding calendar year. Such
annual report shall include details of: (i) the preceding year's activities with
respect to the Property; (ii) ore reserve data for the calendar year just ended;
and (iii) estimates of anticipated production and estimated remaining ore
reserves with respect to proposed activities for the Property for the current
calendar year. In addition, not more frequently than semi-annually, Newmont
shall have the right, upon reasonable notice to Grantor, to inspect and copy all
books, records, technical data, information and materials (the "Data")
pertaining to Grantor's activities with respect to the Property; provided that
such inspections shall not unreasonably interfere with Grantor's activities with
respect to the Property. Grantor makes no representations or warranties to
Newmont concerning any of the Data or any information contained in the annual
reports, and Newmont agrees that if it elects to rely on any such Data or
information, it does so at its sole risk.
-6-
(b) Newmont shall have the right to audit the books and records pertaining
to production from the Property and contest payments of Royalty for 24 months
after receipt by Newmont of the payments to which such books and records
pertain. Such payments shall be deemed conclusively correct unless Newmont
objects to them in writing within 24 months after receipt thereof.
(c) Newmont shall have the right, upon reasonable notice, to inspect the
facilities associated with the Property. Such inspection shall be at the sole
risk of Newmont, and Newmont shall indemnify Grantor from any liability caused
by Newmont's exercise of inspection rights.
(d) Newmont shall not, without the prior written consent of Grantor, which
shall not be unreasonably withheld, knowingly disclose to any third party data
or information obtained pursuant to this Deed which is not generally available
to the public; PROVIDED, HOWEVER, Newmont may disclose data or information so
obtained without the consent of Grantor: (i) if required for compliance with
laws, rules, regulations or orders of a governmental agency or stock exchange;
(ii) to any of Newmont's contractors or consultants; (iii) to any third party to
whom Newmont, in good faith, anticipates selling or assigning Newmont's interest
in the Property; (iv) to a prospective lender; or (v) to a party which Newmont
or an affiliate contemplates a merger, amalgamation or other corporate
reorganization, provided however, that any such third party to whom disclosure
is made has a legitimate business need to know the disclosed information, and
shall first agree in writing to protect the confidential nature of such
information to the same extent Newmont is obligated under this subsection.
(e) Subject to its rights and obligations under Section 3(d), Newmont shall
not issue any press releases pertaining to the Property except upon giving
Grantor three (3) days advance written notice of the contents thereof, and
Newmont shall make any reasonable changes to such proposed press releases
requested by Grantor. Newmont shall not, without Grantor's consent, issue any
press release that implies or infers that Grantor endorses or joins in Newmont's
statements or representations contained in any press release.
4. RECORDS AND AUDITS. Grantor's records of all mining and milling
operations on the Property, and its records with respect to commingling of
production from the Property, shall be available for Newmont's or its authorized
agents' inspection and/or audit upon reasonable advance notice and during normal
business hours. If any such audit or inspection reveals that Royalty payments
for any calendar year are underpaid by more than five percent, Grantor shall
reimburse Newmont for its reasonable costs incurred in such audit or inspection.
Newmont shall be entitled to enter the mine workings and structures on the
Property at reasonable times upon reasonable advance notice for inspection
thereof, but Newmont shall so enter at its own risk and shall indemnify and hold
Grantor and its affiliates harmless against and from any and all loss, costs,
damage, liability and expense (including but not limited to reasonable
attorneys' fees and costs) by reason of injury to Newmont or its agents or
representatives or damage to or destruction of any property of Newmont or its
agents or representatives while on the
-7-
Property on or in such mine workings and structures, unless such injury, damage,
or destruction is a result, in whole or in part, of the negligence of Grantor.
5. NEW RESOURCES OR RESERVES. If Grantor establishes a mineral resource or
mineral reserve on any of the Property, Grantor shall provide to Newmont the
amount of such resource or reserve as soon as practicable after Grantor makes a
public declaration with respect to the establishment thereof
6. COMPLIANCE WITH LAW. Grantor shall at all times comply with all
applicable federal, provincial, and local laws, statutes, rules, regulations,
permits, ordinances, certificates, licenses and other regulatory requirements,
policies and guidelines relating to operations and activities on or with respect
to the Property; PROVIDED, HOWEVER, Grantor shall have the right to contest any
of the same if such contest does not jeopardize the Property or Newmont's rights
thereto or under this Deed.
7. STOCKPILING AND TAILINGS. All tailings, residues, waste rock, spoiled
leach materials, and other materials (collectively "Materials") resulting from
Grantor's operations and activities with respect to the Property shall be the
sole property of Grantor, but shall remain subject to the Royalty (calculated
and paid in accordance with the terms of this Deed) should the Materials be
processed or reprocessed, as the case may be, in the future and result in the
production, sale or other disposition of Precious Metals or Other Minerals.
Notwithstanding the foregoing, Grantor shall have the right to dispose of any or
all such Materials and to commingle the same with other minerals from other
properties. In the event Materials from the Property are processed or
reprocessed, as the case may be, and regardless of where such processing or
reprocessing occurs, the Royalty payable thereon under this Deed shall be
determined on a pro rata basis as determined by using the best engineering and
technical practices then available.
8. REAL PROPERTY INTEREST AND RELINQUISHMENT OF PROPERTY. The Net Smelter
Return Royalty shall attach to any amendments, relocations or conversions of any
mining claims or leases comprising the Property, or to any renewals or
extensions of leases thereof. The Net Smelter Return Royalty shall be a real
property interest that runs with the Property and shall be applicable to Grantor
and its successors and assigns of the Property. If the Grantor surrenders or
relinquishes any of the Property, such properties shall no longer be part of the
Property, provided however; if Grantor reacquires any such properties within a
period of five years after the effective date of relinquishment or abandonment,
such reacquired properties shall be included in the Property from and after the
date of such reacquisition.
9. GENERAL PROVISIONS.
(a) The parties promptly shall execute all such further instruments
and documents and do all such further actions as may be necessary to
effectuate the purposes of this Deed.
-8-
(b) All covenants, conditions and terms of this Deed shall be of
benefit to the parties and run as a covenant with the Property and shall
bind and inure to the benefit of the parties hereto and their respective
assigns and successors.
(c) This Deed shall not be construed to create, expressly or by
implication, a joint venture, mining partnership, commercial partnership,
or other partnership relationship between Grantor and Newmont.
(d) This Deed may not be modified orally, but only by written
agreement executed by Grantor and Newmont.
(e) Time is of the essence in this Deed.
(f) This Deed is to be governed by and construed under the laws of the
State of Nevada.
(g) As used in this Deed, the term "Newmont" shall include all of
Newmont's successors-in-interest, including without limitation assignees,
partners, joint venture partners, lessees, and when applicable mortgagees
and affiliated companies having or claiming an interest in the Property. As
used in this Deed, the term "Grantor" shall include all of Grantor's
successors-in-interest, including without limitation assignees, partners,
joint venture partners, lessees, and when applicable mortgagees and
affiliated companies having or claiming an interest in the Property. As
used in this Deed, the term "Party" or "Parties" shall mean one or both, as
the case may be, of Grantor and Newmont.
(h) Assignment of Property. Grantor shall be free to convey, transfer,
assign, abandon or encumber all or any portion of its interest in the
Property only in accordance with the terms of the Agreement, provided that
in the event of any such conveyance, transfer or assignment, it shall
require the party or parties acquiring such interest to assume in a written
agreement with Newmont the obligations of this Deed in respect of such
interests, and thereupon it shall be relieved of all liability under this
Deed as to such interest in the Property, except for liabilities existing
on the date of such conveyance, transfer, or assignment.
(i) Any notice or other correspondence required or permitted hereunder
shall be deemed to have been property given or delivered when made in
writing and hand delivered to the party to whom directed, or when sent by
United States certified mail, electronic facsimile transmission, or Western
Union telegraph, with all necessary postage or charges fully prepaid,
return receipt requested (or in the case of a facsimile or telegram,
confirmation of delivery), and addressed to the party to whom directed at
the following address:
-9-
Grantor:
Vista Nevada Corp.
7961 Shaffer Parkway, Suite 5
Littleton, Colorado 80127
Attention: Ronald J. (Jock) McGregor
Facsimile: 720/981-1186
Newmont:
Newmont USA Limited d/b/a
Newmont Mining Corporation
1700 Lincoln Street
Denver, Colorado 80203
Attention: Land Department
Facsimile: 303/837-5851
Either party hereto may change its address for the purpose of notices or
communications hereunder by furnishing notice thereof to the other party in
compliance with this Section.
This Deed contains the entire agreement between Grantor and Newmont
with respect to the subject matter hereof. Wherefore, this Deed is executed and
delivered effective on the day and year above written.
GRANTOR:
Vista Nevada Corp.
a Nevada corporation
By:__________________________________
Name:_____________________________
Title:____________________________
NEWMONT:
Newmont USA Limited d/b/a
Newmont Mining Corporation,
a Delaware corporation
By:__________________________________
Name:_____________________________
Title:____________________________
-10-
-11-
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Vista Nevada Corp.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
-------------------------------------
Notary Public
My Commission
expires:_____________________________
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Newmont USA Limited, d/b/a Newmont Mining Corporation.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
-------------------------------------
Notary Public
My Commission
expires:_____________________________
-12-
EXHIBIT A
TO ROYALTY DEED BETWEEN VISTA NEVADA CORP.
AND NEWMONT USA LIMITED D/B/A NEWMONT MINING CORPORATION
THE PROPERTY
1. MAVERICK SPRINGS PROPERTY
The following described unpatented mining claims situated in Elko County and
White Pine County, Nevada:
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ----------------------------------------------------------------------------------------
WILLOW #1 968 784 NMC - 754059
WILLOW #2 968 785 NMC - 754060
WILLOW #9 968 792 NMC - 754067
WILLOW #10 968 793 NMC - 754068
WILLOW #11 968 794 NMC - 754069
WILLOW #12 968 795 NMC - 754070
WILLOW #13 968 796 NMC - 754071
WILLOW #14 968 797 NMC - 754072
WILLOW #15 968 798 NMC - 754073
WILLOW #16 968 799 NMC - 754074
WILLOW #17 968 800 NMC - 754075
WILLOW #18 968 801 NMC - 754076
WILLOW #19 968 802 NMC - 754077
WILLOW #20 968 803 NMC - 754078
WILLOW #21 968 804 NMC - 754079
WILLOW #22 968 805 NMC - 754080
WILLOW #23 968 806 NMC - 754081
WILLOW #24 968 807 NMC - 754082
WILLOW #25 968 808 NMC - 754083
WILLOW #26 968 809 NMC - 754084
WILLOW #27 968 810 NMC - 754085
WILLOW #28 968 811 NMC - 754086
WILLOW #29 968 812 NMC - 754087
WILLOW #30 968 813 NMC - 754088
WILLOW #37 968 814 NMC - 754089
WILLOW #38 968 815 NMC - 754090
WILLOW #39 968 816 NMC - 754091
WILLOW #40 968 817 NMC - 754092
WILLOW #41 968 818 NMC - 754093
WILLOW #42 968 819 NMC - 754094
WILLOW #43 968 820 NMC - 754095
WILLOW #44 968 821 NMC - 754096
WILLOW #45 968 822 NMC - 754097
WILLOW #46 968 823 NMC - 754098
WILLOW #47 968 824 NMC - 754099
WILLOW #48 968 825 NMC - 754100
WILLOW #49 968 826 NMC - 754101
WILLOW #50 968 827 NMC - 754102
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ----------------------------------------------------------------------------------------
WILLOW #51 968 828 NMC - 754103
WILLOW #52 968 829 NMC - 754104
WILLOW #53 968 830 NMC - 754105
WILLOW #54 968 831 NMC - 754106
WILLOW 55 1025 487 NMC - 785303
WILLOW 56 1025 488 NMC - 785304
WILLOW 57 1025 489 NMC - 785305
WILLOW 63 1025 495 NMC - 785311
WILLOW 65 1025 497 NMC - 785313
WILLOW 66 1025 498 NMC - 785314
WILLOW 67 1025 499 NMC - 785315
WILLOW 68 1025 500 NMC - 785316
WILLOW 69 1025 501 NMC - 785317
WILLOW 70 1025 502 NMC - 785318
WILLOW 71 1025 503 NMC - 785319
MAVERICK #1 968 832 NMC - 754107
MAVERICK #3 968 834 NMC - 754109
MAVERICK #5 968 836 NMC - 754111
MAVERICK #7 968 838 NMC - 754113
MAVERICK #8 968 839 NMC - 754114
MAVERICK #9 968 840 NMC - 754115
MAVERICK #10 968 841 NMC - 754116
MAVERICK #11 968 842 NMC - 754117
MAVERICK #12 968 843 NMC - 754118
MAVERICK #13 968 844 NMC - 754119
MAVERICK #14 968 845 NMC - 754120
MAVERICK #15 968 846 NMC - 754121
MAVERICK #16 968 847 NMC - 754122
MAVERICK #17 968 848 NMC - 754123
MAVERICK #18 968 849 NMC - 754124
MAVERICK #39 968 864 NMC - 754140
MAVERICK #40 968 865 NMC - 754141
MAVERICK #41 968 866 NMC - 754142
MAVERICK #42 968 867 NMC - 754143
MAVERICK 524 1025 475 NMC - 785291
MAVERICK 526 1025 477 NMC - 785293
MAVERICK 528 1025 479 NMC - 785295
MAVERICK 529 1025 480 NMC - 785296
MAVERICK 530 1025 481 NMC - 785297
MAVERICK 531 1025 482 NMC - 785298
MAVERICK 67 1 38907 NMC - 826140
MAVERICK 68 1 38908 NMC - 826141
MAVERICK 69 1 38909 NMC - 826142
MAVERICK 70 1 38910 NMC - 826143
MAVERICK 71 1 38911 NMC - 826144
MAVERICK 72 1 38912 NMC - 826145
MAVERICK 73 1 38913 NMC - 826146
MAVERICK 74 1 38914 NMC - 826147
NMS 1 - NMS 94 1 43585 - 43640 NMC - 826738 - 826831
-2-
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ------------------------------------------------------------------------------------
NMS 96 1 43641 NMC - 826832
NMC 98 1 43642 NMC - 826833
NMS 100 1 43643 NMC - 826834
NMS 102 1 43644 NMC - 826835
NMS 104 1 43645 NMC - 826836
NMS 106 1 43646 NMC - 826837
NMS 107 - NMS 166 1 43647 - 43706 NMC - 826838 - 826897
2. All land situated within one mile from the exterior boundary of the
following unpatented mining claims as they were located as of October 1, 2001:
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ------------------------------------------------------------------------------------
WILLOW #1 968 784 NMC - 754059
WILLOW #2 968 785 NMC - 754060
WILLOW #9 968 792 NMC - 754067
WILLOW #10 968 793 NMC - 754068
WILLOW #11 968 794 NMC - 754069
WILLOW #12 968 795 NMC - 754070
WILLOW #13 968 796 NMC - 754071
WILLOW #14 968 797 NMC - 754072
WILLOW #15 968 798 NMC - 754073
WILLOW #16 968 799 NMC - 754074
WILLOW #17 968 800 NMC - 754075
WILLOW #18 968 801 NMC - 754076
WILLOW #19 968 802 NMC - 754077
WILLOW #20 968 803 NMC - 754078
WILLOW #21 968 804 NMC - 754079
WILLOW #22 968 805 NMC - 754080
WILLOW #23 968 806 NMC - 754081
WILLOW #24 968 807 NMC - 754082
WILLOW #25 968 808 NMC - 754083
WILLOW #26 968 809 NMC - 754084
WILLOW #27 968 810 NMC - 754085
WILLOW #28 968 811 NMC - 754086
WILLOW #29 968 812 NMC - 754087
WILLOW #30 968 813 NMC - 754088
WILLOW #37 968 814 NMC - 754089
WILLOW #38 968 815 NMC - 754090
WILLOW #39 968 816 NMC - 754091
WILLOW #40 968 817 NMC - 754092
WILLOW #41 968 818 NMC - 754093
WILLOW #42 968 819 NMC - 754094
WILLOW #43 968 820 NMC - 754095
WILLOW #44 968 821 NMC - 754096
WILLOW #45 968 822 NMC - 754097
WILLOW #46 968 823 NMC - 754098
WILLOW #47 968 824 NMC - 754099
WILLOW #48 968 825 NMC - 754100
WILLOW #49 968 826 NMC - 754101
-3-
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- ----------------------------------------------------------------------------------------
WILLOW #50 968 827 NMC - 754102
WILLOW #51 968 828 NMC - 754103
WILLOW #52 968 829 NMC - 754104
WILLOW #53 968 830 NMC - 754105
WILLOW #54 968 831 NMC - 754106
WILLOW 55 1025 487 NMC - 785303
WILLOW 56 1025 488 NMC - 785304
WILLOW 57 1025 489 NMC - 785305
WILLOW 63 1025 495 NMC - 785311
WILLOW 65 1025 497 NMC - 785313
WILLOW 66 1025 498 NMC - 785314
WILLOW 67 1025 499 NMC - 785315
WILLOW 68 1025 500 NMC - 785316
WILLOW 69 1025 501 NMC - 785317
WILLOW 70 1025 502 NMC - 785318
WILLOW 71 1025 503 NMC - 785319
MAVERICK #1 968 832 NMC - 754107
MAVERICK #3 968 834 NMC - 754109
MAVERICK #5 968 836 NMC - 754111
MAVERICK #7 968 838 NMC - 754113
MAVERICK #8 968 839 NMC - 754114
MAVERICK #9 968 840 NMC - 754115
MAVERICK #10 968 841 NMC - 754116
MAVERICK #11 968 842 NMC - 754117
MAVERICK #12 968 843 NMC - 754118
MAVERICK #13 968 844 NMC - 754119
MAVERICK #14 968 845 NMC - 754120
MAVERICK #15 968 846 NMC - 754121
MAVERICK #16 968 847 NMC - 754122
MAVERICK #17 968 848 NMC - 754123
MAVERICK #18 968 849 NMC - 754124
MAVERICK #39 968 864 NMC - 754140
MAVERICK #40 968 865 NMC - 754141
MAVERICK #41 968 866 NMC - 754142
MAVERICK #42 968 867 NMC - 754143
MAVERICK 524 1025 475 NMC - 785291
MAVERICK 526 1025 477 NMC - 785293
MAVERICK 528 1025 479 NMC - 785295
MAVERICK 529 1025 480 NMC - 785296
MAVERICK 530 1025 481 NMC - 785297
MAVERICK 531 1025 482 NMC - 785298
MAVERICK 67 1 38907 NMC - 826140
MAVERICK 68 1 38908 NMC - 826141
MAVERICK 69 1 38909 NMC - 826142
MAVERICK 70 1 38910 NMC - 826143
MAVERICK 71 1 38911 NMC - 826144
MAVERICK 72 1 38912 NMC - 826145
MAVERICK 73 1 38913 NMC - 826146
MAVERICK 74 1 38914 NMC - 826147
-4-
EXHIBIT 8
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
MOUNTAIN VIEW AREA OF INTEREST
The Mountain View Area of Interest includes all land within 0.5 miles
of the exterior boundary of the following unpatented mining claims, as they were
located as of June 30, 2000, and as generally depicted on Exhibit A to that
Lease/Option Agreement dated June 3, 2000, as amended on April 16, 2001 and June
6, 2002, between Franco-Nevada Mining Corporation, Inc., and Raymond W. and
Leslie A. Wittkopp, a memorandum of which was recorded in the Washoe County
Recorder's Office on August 11, 2000, as Document 2472553.
WASHOE COUNTY
- ------------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- ------------------------------------------------------------------------------------------
Mt. View #1 1481 975 660347 142372
Mt. View #2 1481 976 660348 142373
Mt. View #3 1481 977 660349 142374
Mt. View #4 1481 978 660350 142375
Mt. View #5 1632 124 739181 196207
Mt. View #6 1644 549 745360 202456
Big R #1 1646 913 746334 203087
Jack 1 1797 724 821242 253233
Jack 2 1797 725 821243 253234
Jack 3 1797 726 821244 253235
Jack 4 1797 727 821245 253236
Jack 5 1797 728 821246 253237
Jack 6 1797 729 821247 253238
Jack 7 1797 730 821248 253239
Jack 8 1797 731 821249 253240
Jack 9 1797 732 821250 253241
Jack 10 1797 733 821251 253242
Jack 11 1797 734 821252 253243
Jack 12 1797 735 821253 253244
Jack 13 1797 736 821254 253245
Jack 14 1797 737 821255 253246
Jack 15 1797 738 821256 253247
Jack 35 1797 758 821276 253267
Jack 38 1797 761 821279 253270
Jack 63 1797 786 821304 253295
Jack 64 1797 787 821305 253296
WASHOE COUNTY
- ---------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- ----------------------------------------------------------------------------------
Jack 65 1797 788 821306 253297
Jack 66 1797 789 821307 253298
Jack 67 1797 790 821308 253299
Jack 68 1797 791 821309 253300
Jack 69 1797 792 821310 253301
Jack 70 1797 793 821311 253302
Jack 71 1797 794 821312 253303
Jack 72 1797 795 821313 253304
Jack 73 1797 796 821314 253305
Jack 74 1797 797 821315 253306
Jack 75 1797 798 821316 253307
Jack 76 1797 799 821317 253308
Jack 77 1979 800 821318 253309
Jack 78 1797 801 821319 253310
Jack 79 1797 802 821320 253311
Jack 80 1797 803 821321 253312
Jack 81 1797 804 821322 253313
Jack 82 1797 805 821323 253314
Jack 83 1797 806 821324 253315
Jack 84 1797 807 821325 253316
Jack 85 1797 808 821326 253317
Jack 86 1797 809 821327 253318
Jack 87 1797 810 821328 253319
Jack 88 1797 811 821329 253320
Jack 89 1797 812 821330 253321
Jack 90 1797 813 821331 253322
Jack 91 1797 814 821332 253323
Jack 92 1797 815 821333 253324
Jack 93 1797 816 821334 253325
Jack 94 1797 817 821335 253326
Jack 95 1797 818 821336 253327
Jack 96 1797 819 821337 253328
Harlan #1 1796 876 820863 253656
Lara #1 1796 878 820865 253657
Rich #13 2432283 814670
Rich #14 2432284 814671
Rich #15 2432285 814672
Rich #16 2432286 814673
Rich #17 2432287 814674
Rich #18 2432288 814675
Rich #21 2432289 814676
-2-
WASHOE COUNTY
- ---------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- ---------------------------------------------------------------------------------
Rich #22 2432290 814677
Rich #23 2432291 814678
Rich #24 2432292 814679
Rich #39 2432293 814680
Rich #41 2432294 814681
Rich #43 2432295 814682
Rich #45 2432296 814683
Rich #47 2432297 814684
Rich 50 2432298 814685
Rich 51 2432299 814686
Rich 52 2432300 814687
-3-
EXHIBIT 9
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
ROYALTY DEED
------------
This Royalty Deed (hereafter, the "Deed"), effective as of the __ day of
October, 2002, is by and between Vista Nevada Corp., a Nevada corporation, whose
address is 7961 Shaffer Parkway, Suite 5, Littleton, Colorado 80127 ("Grantor")
and Newmont Capital Limited, a Nevada corporation, whose address is 1700 Lincoln
Street, Denver, Colorado 80203 ("Newmont").
Whereas, pursuant to that Agreement, dated October __, 2002, between
Grantor, Vista Gold Corporation, Newmont and Newmont USA Limited d/b/a Newmont
Mining Corporation (the "Agreement"), Newmont has conveyed to Grantor, its
interests in the Property (defined below);
Now, therefore, Grantor, for and in consideration of the sum of $10.00
lawful money of the United States of America, together with other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, has remised, released, sold, transferred, conveyed and
quitclaimed, and by these presents does remise, release, sell, transfer, convey
and forever quitclaim unto Newmont a production royalty (the "Production
Royalty") on production of Minerals from the Property. For purposes of this
Deed, the term "Mineral(s)" shall mean any and all metals, minerals and mineral
rights of whatever kind and nature in, under or upon the surface or subsurface
of the Property (including, without limitation metals, precious metals, base
metals, industrial minerals, gems, diamonds, commercially valuable rock,
aggregate, clays and diatomaceous earth, hydrocarbons, and oil and gas, and
other minerals which are mined, excavated, extracted or otherwise recovered).
1. PROPERTY SUBJECT TO PRODUCTION ROYALTY. The Production Royalty shall be
a royalty interest in and a burden upon the property more particularly described
on EXHIBIT A to this Deed (the "Property").
2. PRODUCTION ROYALTY. Grantor shall pay to Newmont a perpetual Production
Royalty in an amount equal to one and one half percent (1 1/2%) of Net Smelter
Returns (defined below) from the sale or other disposition of all Minerals
produced and sold from the Property, determined in accordance with the
provisions set forth in this Deed.
(a) FOR PRECIOUS METALS. Net Smelter Returns, in the case of gold,
silver, and platinum group metals ("Precious Metals"), shall be determined by
multiplying (i) the gross number of troy ounces of Precious Metals contained in
the production from the Property ("Monthly Production") delivered to the
smelter, refiner, processor, purchaser or other recipient of such production, or
an insurer as a result of
casualty to such production (collectively, "Payor") during the preceding
calendar month, by (ii) for gold, the average of the London Bullion Market,
Afternoon Fix, spot prices for the preceding calendar month and for all other
Precious Metals, the average of the New York Commodities Exchange final spot
prices for the preceding calendar month for the particular Mineral for which the
price is being determined, and subtracting from the product of (i) and (ii) only
the following if actually incurred:
(A) charges imposed by the Payor for refining bullion from dore
or concentrates of Precious Metals ("Beneficiated Precious Metals") produced by
Grantor's final mill or other final processing plant; however, charges imposed
by the Payor for smelting or refining of raw or crushed ore containing Precious
Metals or other preliminarily processed Precious Metals shall not be subtracted
in determining Net Smelter Returns;
(B) penalty substance, assaying, and sampling charges imposed by
the Payor for refining Beneficiated Precious Metals contained in such
production; and
(C) charges and costs, if any, for transportation and insurance
of Beneficiated Precious Metals from Grantor's mill or other final processing
plant to places where such Beneficiated Precious Metals are smelted, refined
and/or sold or otherwise disposed of; and
In the event the refining of bullion from the Beneficiated Precious Metals
contained in such production is carried out in custom toll facilities owned or
controlled, in whole or in part, by Grantor, which facilities were not
constructed for the purpose of refining Beneficiated Precious Metals or other
Minerals from the Property, then charges, costs and penalties for such refining
shall mean the amount Grantor would have incurred if such refining were carried
out at facilities not owned or controlled by Grantor then offering comparable
services for comparable products on prevailing terms, but in no event greater
than actual costs incurred by Grantor with respect to such refining.
In the event Grantor receives insurance proceeds for loss of production, Grantor
shall pay to Newmont the Royalty percentage of any such insurance proceeds which
are received by Grantor for such loss of production.
(b) FOR OTHER MINERALS. Net Smelter Returns, in the case of all
Minerals other than Precious Metals and the beneficiated products thereof
("Other Minerals"), shall be determined by multiplying (i) the gross amount of
the particular Other Mineral contained in the Monthly Production delivered to
the Payor during the preceding calendar month by (ii) the average of the New
York Commodities Exchange final daily spot prices for the preceding calendar
month of the appropriate Other Mineral, and subtracting from the product of (i)
and (ii) only the following if actually incurred:
(A) charges imposed by the Payor for smelting, refining or
processing Other Minerals contained in such production, but excluding any and
all charges and costs related to Grantor's mills or other processing plants
constructed for the purpose of milling or processing Other Minerals, in whole or
in part;
-2-
(B) penalty substance, assaying, and sampling charges imposed by
the Payor for smelting, refining, or processing Other Minerals contained in such
production, but excluding any and all charges and costs of or related to
Grantor's mills or other processing plants constructed for the purpose of
milling or processing Other Minerals, in whole or in part; and
(C) charges and costs, if any, for transportation and insurance
of Other Minerals and the beneficiated products thereof from Grantor's final
mill or other final processing plant to places where such Beneficiated Precious
Metals are smelted, refined and/or sold or otherwise disposed of.
In the event smelting, refining, or processing of Other Minerals are carried out
in custom toll facilities owned or controlled, in whole or in part, by Grantor,
which facilities were not constructed for the purpose of milling or processing
Other Minerals, then charges, costs and penalties for such smelting, refining or
processing shall mean the amount Grantor would have incurred if such smelting,
refining or processing were carried out at facilities not owned or controlled by
Grantor then offering comparable services for comparable products on prevailing
terms, but in no event greater than actual costs incurred by Grantor with
respect to such smelting and refining.
In the event Grantor receives insurance proceeds for loss of production, Grantor
shall pay to Newmont the Royalty percentage of any such insurance proceeds which
are received by Grantor for such loss of production.
(c) PAYMENTS OF ROYALTY IN CASH OR IN KIND. Royalty payments shall be
made to Newmont as follows:
(i) ROYALTY IN KIND. Newmont may elect to receive its Royalty on
Precious Metals from the Property "in cash" or "in kind" as refined bullion. The
election may be exercised once per year on a calendar year basis during the life
of production from the Property. Notice of election to receive the following
year's Royalty for Precious Metals in cash or in kind shall be made in writing
by Newmont and delivered to Grantor on or before November 1 of each year. In the
event no written election is made, the Royalty for Precious Metals will continue
to be paid as it is then being paid. As of the date of this Deed, Newmont elects
to receive its Royalty on Precious Metals "in cash." Royalties on Other Minerals
shall not be payable in kind.
(A) If Newmont elects to receive its Royalty for Precious
Metals in kind, Newmont shall open a bullion storage account at each refinery or
mint designated by Grantor as a possible recipient of refined bullion in which
Newmont owns an interest. Newmont shall be solely responsible for all costs and
liabilities associated with maintenance of such account or accounts, and Grantor
shall not be required to bear any additional expense with respect to such
in-kind payments.
(B) Royalty will be paid by the deposit of refined bullion
into Newmont's account. On or before the 25th day of each calendar month
following a calendar month during which production and sale or other disposition
-3-
occurred, Grantor shall deliver written instructions to the mint or refinery,
with a copy to Newmont, directing the mint or refinery to deliver refined
bullion due to Newmont in respect of the Royalty, by crediting to Newmont's
account the number of ounces of refined bullion for which Royalty is due;
PROVIDED, HOWEVER, that the words "other disposition" as used in this Deed shall
not include processing, milling, beneficiation or refining losses of Precious
Metals. The number of ounces of refined bullion to be credited will be based
upon Newmont's share of the previous month's production and sale or other
disposition as calculated pursuant to the commingling provisions of Section 2(f)
hereof.
(C) Royalty payable in kind on silver or platinum group
metals shall be converted to the gold equivalent of such silver or platinum
group metals by using the average monthly spot prices for Precious Metals
described in Section 2(a).
(D) Title to refined bullion delivered to Newmont under this
Deed shall pass to Newmont at the time such bullion is credited to Newmont's
account at the mint or refinery.
(E) Newmont agrees to hold harmless Grantor from any
liability imposed as a result of the election of Newmont to receive Royalty in
kind and from any losses incurred as a result of Newmont's trading and hedging
activities. Newmont assumes all responsibility for any shortages which occur as
a result of Newmont's anticipation of credits to its account in advance of an
actual deposit or credit to its account by a refiner or mint.
(F) When royalties are paid in kind, they will not reflect
the costs deductible in calculating "Net Smelter Returns" under this Deed.
Within 15 days of the receipt of a statement showing charges incurred by Grantor
for transportation, smelting or other deductible costs, Newmont shall remit to
Grantor full payment for such charges. If Newmont does not pay such charges when
due, Grantor shall have the right, at its election, to deduct the gold
equivalent of such charges from the ounces of gold bullion to be credited to
Newmont in the following month.
(ii) IN CASH. If Newmont elects to receive its Royalty for
Precious Metals in cash, and as to Royalty payable on Other Minerals, payments
shall be payable on or before the twenty-fifth (25th) day of the month following
the calendar month in which the Minerals subject to the Royalty were shipped to
the Payor by Grantor. For purposes of calculating the cash amount due to
Newmont, Precious Metals and Other Minerals will be deemed to have been sold or
otherwise disposed of at the time refined production from Property is delivered,
made available, or credited to Grantor by a mint or refiner. The price used for
calculating the cash amount due for Royalty on Precious Metals or Other Minerals
shall be determined in accordance with Section 2(a) and (b) as applicable.
Grantor shall make each Royalty payment to be paid in cash by delivery of a
check or draft payable to Newmont and delivering the check to Grantor at its
address listed in Section 9(h). Newmont hereby waives and agrees to hold Grantor
harmless against, and binds its successors and assigns to waive and hold Grantor
-4-
harmless against, any claim by any other party to any Royalty paid by Grantor as
herein provided.
(iii) DETAILED STATEMENT. All Royalty payments or credits shall
be accompanied by a detailed statement explaining the calculation thereof
together with any available settlement sheets from the Payor.
(d) MONTHLY RECONCILIATION.
(i) On or before the 25th day of the month, Grantor shall make an
interim settlement based on the information then available of such Royalty,
either in cash or in kind, whichever is applicable, by paying (A) not less than
one hundred percent (100%) of the anticipated final settlement of Precious
Metals in kind Royalty payments and (B) not less than ninety-five percent (95%)
of the anticipated final settlement of cash Royalty payments.
(ii) The parties recognize that a period of time exists between
the production of ore, the production of dore or concentrates from ore, the
production of refined or finished product from dore or concentrates, and the
receipt of Payor's statements for refined or finished product. As a result, the
payment of Royalty will not coincide exactly with the actual amount of refined
or finished product produced from the Property for the previous month. Grantor
will provide final reconciliation promptly after settlement is reached with the
Payor for all lots sold or subject to other disposition in any particular month.
(iii) In the event that Newmont has been underpaid for any
provisional payment (whether in cash or in kind), Grantor shall pay the
difference in cash by check and not in kind with such payment being made at the
time of the final reconciliation. If Newmont has been overpaid in the previous
calendar quarter, Newmont shall make a payment to Grantor of the difference by
check. Reconciliation payments shall be made on the same basis as used for the
payment in cash pursuant to Section 2(c)(ii).
(e) HEDGING TRANSACTIONS. All profits and losses resulting from
Grantor's sales of Precious Metals, or Grantor's engaging in any commodity
futures trading, option trading, or metals trading, or any combination thereof,
and any other hedging transactions including trading transactions designed to
avoid losses and obtain possible gains due to metal price fluctuations
(collectively, "hedging transactions") are specifically excluded from Royalty
calculations pursuant to this Deed. All hedging transactions by Grantor and all
profits or losses associated therewith, if any, shall be solely for Grantor's
account.
The Royalty payable on Precious Metals or Other Minerals subject to hedging
transactions shall be determined as follows:
(i) AFFECTING PRECIOUS METALS. The amount of Royalty to be paid
on all Precious Metals subject to hedging transactions by Grantor shall be
determined in the same manner as provided in Section 2(a), with the
understanding that
-5-
the average monthly spot price shall be for the calendar month preceding the
calendar month during which Precious Metals subject to hedging transactions are
shipped by Grantor to the Payor.
(ii) AFFECTING OTHER MINERALS. The amount of Royalty to be paid
on all Other Minerals subject to hedging transactions by Grantor shall be
determined in the same manner as provided in Section 2(b), with the
understanding that the average monthly spot price shall be for the calendar
month preceding the calendar month during which Other Minerals subject to
hedging transactions are shipped to the Payor.
(f) COMMINGLING. Grantor shall have the right to commingle Minerals
from the Property with minerals from other properties. Before any Precious
Metals or Other Minerals produced from the Property are commingled with minerals
from other properties, the Precious Metals or Other Minerals produced from the
Property shall be measured and sampled in accordance with sound mining and
metallurgical practices for moisture, metal, commercial minerals and other
appropriate content. Representative samples of the Precious Metals or Other
Minerals shall be retained by Grantor and assays (including moisture and penalty
substances) and other appropriate analyses of these samples shall be made before
commingling to determine gross metal content of Precious Metals or gross metal
or mineral content of Other Minerals. Grantor shall retain such analyses for a
reasonable amount of time, but not less than eighteen (18) months, after receipt
by Newmont of the Royalty paid with respect to such commingled Minerals from the
Property; and shall retain such samples taken from the Property for seven (7)
days after collection.
(g) NO OBLIGATION TO MINE. Grantor shall have sole discretion to
determine the extent of its mining of the Property and the time or the times for
beginning, continuing or resuming mining operations with respect thereto.
Grantor shall have no obligation to Newmont or otherwise to mine any of the
Property, nor shall it have any obligation to diligently explore or develop the
Property.
3. BOOKS, RECORDS, INSPECTIONS, CONFIDENTIALITY AND PRESS RELEASES.
(a) Not later than March 15 following the end of each calendar year,
Grantor shall provide Newmont with an annual report of activities and operations
conducted with respect to the Property during the preceding calendar year. Such
annual report shall include details of: (i) the preceding year's activities with
respect to the Property; (ii) ore reserve data for the calendar year just ended;
and (iii) estimates of anticipated production and estimated remaining ore
reserves with respect to proposed activities for the Property for the current
calendar year. In addition, not more frequently than semi-annually, Newmont
shall have the right, upon reasonable notice to Grantor, to inspect and copy all
books, records, technical data, information and materials (the "Data")
pertaining to Grantor's activities with respect to the Property; provided that
such inspections shall not unreasonably interfere with Grantor's activities with
respect to the Property. Grantor makes no representations or warranties to
Newmont concerning any of the Data or any information contained in the annual
reports, and Newmont agrees that if it elects to rely on any such Data or
information, it does so at its sole risk.
-6-
(b) Newmont shall have the right to audit the books and records
pertaining to production from the Property and contest payments of Royalty for
24 months after receipt by Newmont of the payments to which such books and
records pertain. Such payments shall be deemed conclusively correct unless
Newmont objects to them in writing within 24 months after receipt thereof.
(c) Newmont shall have the right, upon reasonable notice, to inspect
the facilities associated with the Property. Such inspection shall be at the
sole risk of Newmont, and Newmont shall indemnify Grantor from any liability
caused by Newmont's exercise of inspection rights.
(d) Newmont shall not, without the prior written consent of Grantor,
which shall not be unreasonably withheld, knowingly disclose to any third party
data or information obtained pursuant to this Deed which is not generally
available to the public; PROVIDED, HOWEVER, Newmont may disclose data or
information so obtained without the consent of Grantor: (i) if required for
compliance with laws, rules, regulations or orders of a governmental agency or
stock exchange; (ii) to any of Newmont's contractors or consultants; (iii) to
any third party to whom Newmont, in good faith, anticipates selling or assigning
Newmont's interest in the Property; (iv) to a prospective lender; or (v) to a
party which Newmont or an affiliate contemplates a merger, amalgamation or other
corporate reorganization, provided however, that any such third party to whom
disclosure is made has a legitimate business need to know the disclosed
information, and shall first agree in writing to protect the confidential nature
of such information to the same extent Newmont is obligated under this
subsection.
(e) Subject to its rights and obligations under Section 3(d), Newmont
shall not issue any press releases pertaining to the Property except upon giving
Grantor three (3) days advance written notice of the contents thereof, and
Newmont shall make any reasonable changes to such proposed press releases
requested by Grantor. Newmont shall not, without Grantor's consent, issue any
press release that implies or infers that Grantor endorses or joins in Newmont's
statements or representations contained in any press release.
4. RECORDS AND AUDITS. Grantor's records of all mining and milling
operations on the Property, and its records with respect to commingling of
production from the Property, shall be available for Newmont's or its authorized
agents' inspection and/or audit upon reasonable advance notice and during normal
business hours. If any such audit or inspection reveals that Royalty payments
for any calendar year are underpaid by more than five percent, Grantor shall
reimburse Newmont for its reasonable costs incurred in such audit or inspection.
Newmont shall be entitled to enter the mine workings and structures on the
Property at reasonable times upon reasonable advance notice for inspection
thereof, but Newmont shall so enter at its own risk and shall indemnify and hold
Grantor and its affiliates harmless against and from any and all loss, costs,
damage, liability and expense (including but not limited to reasonable
attorneys' fees and costs) by reason of injury to Newmont or its agents or
representatives or damage to or destruction of any property of Newmont or its
agents or representatives while on the
-7-
Property on or in such mine workings and structures, unless such injury, damage,
or destruction is a result, in whole or in part, of the negligence of Grantor.
5. NEW RESOURCES OR RESERVES. If Grantor establishes a mineral resource or
mineral reserve on any of the Property, Grantor shall provide to Newmont the
amount of such resource or reserve as soon as practicable after Grantor makes a
public declaration with respect to the establishment thereof
6. COMPLIANCE WITH LAW. Grantor shall at all times comply with all
applicable federal, provincial, and local laws, statutes, rules, regulations,
permits, ordinances, certificates, licenses and other regulatory requirements,
policies and guidelines relating to operations and activities on or with respect
to the Property; PROVIDED, HOWEVER, Grantor shall have the right to contest any
of the same if such contest does not jeopardize the Property or Newmont's rights
thereto or under this Deed.
7. STOCKPILING AND TAILINGS. All tailings, residues, waste rock, spoiled
leach materials, and other materials (collectively "Materials") resulting from
Grantor's operations and activities with respect to the Property shall be the
sole property of Grantor, but shall remain subject to the Royalty (calculated
and paid in accordance with the terms of this Deed) should the Materials be
processed or reprocessed, as the case may be, in the future and result in the
production, sale or other disposition of Precious Metals or Other Minerals.
Notwithstanding the foregoing, Grantor shall have the right to dispose of any or
all such Materials and to commingle the same with other minerals from other
properties. In the event Materials from the Property are processed or
reprocessed, as the case may be, and regardless of where such processing or
reprocessing occurs, the Royalty payable thereon under this Deed shall be
determined on a pro rata basis as determined by using the best engineering and
technical practices then available.
8. REAL PROPERTY INTEREST AND RELINQUISHMENT OF PROPERTY. The Net Smelter
Return Royalty shall attach to any amendments, relocations or conversions of any
mining claims or leases comprising the Property, or to any renewals or
extensions of leases thereof. The Net Smelter Return Royalty shall be a real
property interest that runs with the Property and shall be applicable to Grantor
and its successors and assigns of the Property. If the Grantor surrenders or
relinquishes any of the Property, such properties shall no longer be part of the
Property, provided, however; that if Grantor reacquires any such properties
within a period of five years after the effective date of relinquishment or
abandonment, such reacquired properties shall be included in the Property from
and after the date of such reacquisition.
9. GENERAL PROVISIONS.
(a) The parties promptly shall execute all such further instruments
and documents and do all such further actions as may be necessary to effectuate
the purposes of this Deed.
-8-
(b) All covenants, conditions and terms of this Deed shall be of
benefit to the parties and run as a covenant with the Property and shall bind
and inure to the benefit of the parties hereto and their respective assigns and
successors.
(c) This Deed shall not be construed to create, expressly or by
implication, a joint venture, mining partnership, commercial partnership, or
other partnership relationship between Grantor and Newmont.
(d) This Deed may not be modified orally, but only by written
agreement executed by Grantor and Newmont.
(e) Time is of the essence in this Deed.
(f) This Deed is to be governed by and construed under the laws of the
State of Nevada.
(g) As used in this Deed, the term "Newmont" shall include all of
Newmont's successors-in-interest, including without limitation assignees,
partners, joint venture partners, lessees, and when applicable mortgagees and
affiliated companies having or claiming an interest in the Property. As used in
this Deed, the term "Grantor" shall include all of Grantor's
successors-in-interest, including without limitation assignees, partners, joint
venture partners, lessees, and when applicable mortgagees and affiliated
companies having or claiming an interest in the Property. As used in this Deed,
the term "Party" or "Parties" shall mean one or both, as the case may be, of
Grantor and Newmont.
(h) Assignment of Property. Grantor shall be free to convey, transfer,
assign, abandon or encumber all or any portion of its interest in the Property
only in accordance with the terms of the Agreement, provided that in the event
of any such conveyance, transfer or assignment, it shall require the party or
parties acquiring such interest to assume in a written agreement with Newmont
the obligations of this Deed in respect of such interests, and thereupon it
shall be relieved of all liability under this Deed as to such interest in the
Property, except for liabilities existing on the date of such conveyance,
transfer, or assignment.
(i) Any notice or other correspondence required or permitted hereunder
shall be deemed to have been property given or delivered when made in writing
and hand delivered to the party to whom directed, or when sent by United States
certified mail, electronic facsimile transmission, or Western Union telegraph,
with all necessary postage or charges fully prepaid, return receipt requested
(or in the case of a facsimile or telegram, confirmation of delivery), and
addressed to the party to whom directed at the following address:
-9-
Grantor:
Vista Nevada Corp.
7961 Shaffer Parkway, Suite 5
Littleton, Colorado 80127
Attention: Ronald J. (Jock) McGregor)
Facsimile: 720/981-1186
-10-
Newmont:
Newmont Capital Limited
1700 Lincoln Street
Denver, Colorado 80203
Attention: Land Department
Facsimile: 303/837-5851
Either party hereto may change its address for the purpose of notices or
communications hereunder by furnishing notice thereof to the other party in
compliance with this Section.
This Deed contains the entire agreement between Grantor and Newmont with
respect to the subject matter hereof. Wherefore, this Deed is executed and
delivered effective on the day and year above written.
GRANTOR:
Vista Nevada Corp.
a Nevada corporation
By: _________________________________
Name:
Title:
NEWMONT:
Newmont Capital Limited
a Nevada corporation
By: _________________________________
Name:
Title:
-11-
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Vista Nevada Corp.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
____________________________________________
Notary Public
My Commission expires:______________________
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Newmont Capital Limited
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
____________________________________________
Notary Public
My Commission expires:______________________
-12-
EXHIBIT A
TO ROYALTY DEED BETWEEN VISTA NEVADA CORP.
AND NEWMONT CAPITAL LIMITED
THE PROPERTY
1. MOUNTAIN VIEW PROPERTY
The following described unpatented lode mining claims situated in
Washoe County, Nevada:
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Mt. View #1 1481 975 660347 142372
Mt. View #2 1481 976 660348 142373
Mt. View #3 1481 977 660349 142374
Mt. View #4 1481 978 660350 142375
Mt. View #5 1632 124 739181 196207
Mt. View #6 1644 549 745360 202456
Big R #1 1646 913 746334 203087
Jack 1 1797 724 821242 253233
Jack 2 1797 725 821243 253234
Jack 3 1797 726 821244 253235
Jack 4 1797 727 821245 253236
Jack 5 1797 728 821246 253237
Jack 6 1797 729 821247 253238
Jack 7 1797 730 821248 253239
Jack 8 1797 731 821249 253240
Jack 9 1797 732 821250 253241
Jack 10 1797 733 821251 253242
Jack 11 1797 734 821252 253243
Jack 12 1797 735 821253 253244
Jack 13 1797 736 821254 253245
Jack 14 1797 737 821255 253246
Jack 15 1797 738 821256 253247
Jack 35 1797 758 821276 253267
Jack 38 1797 761 821279 253270
Jack 63 1797 786 821304 253295
Jack 64 1797 787 821305 253296
Jack 65 1797 788 821306 253297
Jack 66 1797 789 821307 253298
Jack 67 1797 790 821308 253299
Jack 68 1797 791 821309 253300
Jack 69 1797 792 821310 253301
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Jack 70 1797 793 821311 253302
Jack 71 1797 794 821312 253303
Jack 72 1797 795 821313 253304
Jack 73 1797 796 821314 253305
Jack 74 1797 797 821315 253306
Jack 75 1797 798 821316 253307
Jack 76 1797 799 821317 253308
Jack 78 1797 801 821319 253310
Jack 79 1797 802 821320 253311
Jack 80 1797 803 821321 253312
Jack 81 1797 804 821322 253313
Jack 82 1797 805 821323 253314
Jack 83 1797 806 821324 253315
Jack 84 1797 807 821325 253316
Jack 85 1797 808 821326 253317
Jack 86 1797 809 821327 253318
Jack 87 1797 810 821328 253319
Jack 88 1797 811 821329 253320
Jack 89 1797 812 821330 253321
Jack 90 1797 813 821331 253322
Jack 91 1797 814 821332 253323
Jack 92 1797 815 821333 253324
Jack 93 1797 816 821334 253325
Jack 94 1797 817 821335 253326
Jack 95 1797 818 821336 253327
Jack 96 1797 819 821337 253328
Harlan #1 1796 876 820863 253656
Lara #1 1796 878 820865 253657
Rich #13 2432283 814670
Rich #14 2432284 814671
Rich #15 2432285 814672
Rich #16 2432286 814673
Rich #17 2432287 814674
Rich #18 2432288 814675
Rich #21 2432289 814676
Rich #22 2432290 814677
Rich #23 2432291 814678
Rich #24 2432292 814679
Rich #39 2432293 814680
Rich 50 2432298 814685
Rich 51 2432299 814686
-2-
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Rich 52 2432300 814687
Jack 67A 2516120 822239
Jack 77R 2516119 822240
Rich 61 2516129 822249
Rich 63 2516131 822251
Rich 64 2516132 822252
Rich 66 2516134 822254
Rich 68 2516136 822256
Rich 70 2516138 822258
Rich 72 2516140 822260
Rich 74 2516142 822262
Rich 76 2516144 822264
Rich 78 2516146 822266
Rich 80 2516148 822268
Rich 81 2516149 822269
Rich 82 2516150 822270
Rich 83 2516151 822271
Rich 84 2516152 822272
Rich 85 2516153 822273
Rich 86 2516154 822274
Rich 87 2516155 822275
Rich 88 2516156 822276
Rich 89 2516157 822277
Rich 90 2516158 822278
Rich 91 2516159 822279
Rich 92 2516160 822280
Rich 93 2516161 822281
Rich 94 2516162 822282
Rich 95 2516163 822283
Rich 96 2516164 822284
Rich 97 2516165 822285
Rich 98 2516166 822286
Rich 99 2516167 822287
Rich 100 2516168 822288
Rich 101 2516169 822289
Rich 102 2516170 822290
Rich 103 2516171 822291
Rich 104 2516172 822292
Rich 105 2516173 822293
Rich 106 2516174 822294
Rich 107 2516175 822295
-3-
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Rich 108 2516176 822296
Rich 109 2516177 822297
Rich 110 2516178 822298
Rich 111 2516179 822299
Rich 112 2516180 822300
Rich 113 2516181 822301
Rich 114 2516182 822302
Rich 115 2516183 822303
Rich 116 2516184 822304
Rich 117 2516185 822305
Rich 118 2516186 822306
Rich 119 2516187 822307
Rich 120 2516188 822308
Rich 121 2516189 822309
2. All land within 0.5 miles of the exterior boundary of the following
unpatented mining claims, as they were located as of June 30, 2000, and as
generally depicted on Exhibit A to that Lease/Option Agreement dated June 3,
2000, as amended on April 16, 2001 and June 6, 2002, between Franco-Nevada
Mining Corporation, Inc., and Raymond W. and Leslie A. Wittkopp, a memorandum of
which was recorded in the Washoe County Recorder's Office on August 11, 2000, as
Document 2472553.
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Mt. View #1 1481 975 660347 142372
Mt. View #2 1481 976 660348 142373
Mt. View #3 1481 977 660349 142374
Mt. View #4 1481 978 660350 142375
Mt. View #5 1632 124 739181 196207
Mt. View #6 1644 549 745360 202456
Big R #1 1646 913 746334 203087
Jack 1 1797 724 821242 253233
Jack 2 1797 725 821243 253234
Jack 3 1797 726 821244 253235
Jack 4 1797 727 821245 253236
Jack 5 1797 728 821246 253237
Jack 6 1797 729 821247 253238
Jack 7 1797 730 821248 253239
Jack 8 1797 731 821249 253240
-4-
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Jack 9 1797 732 821250 253241
Jack 10 1797 733 821251 253242
Jack 11 1797 734 821252 253243
Jack 12 1797 735 821253 253244
Jack 13 1797 736 821254 253245
Jack 14 1797 737 821255 253246
Jack 15 1797 738 821256 253247
Jack 35 1797 758 821276 253267
Jack 38 1797 761 821279 253270
Jack 63 1797 786 821304 253295
Jack 64 1797 787 821305 253296
Jack 65 1797 788 821306 253297
Jack 66 1797 789 821307 253298
Jack 67 1797 790 821308 253299
Jack 68 1797 791 821309 253300
Jack 69 1797 792 821310 253301
Jack 70 1797 793 821311 253302
Jack 71 1797 794 821312 253303
Jack 72 1797 795 821313 253304
Jack 73 1797 796 821314 253305
Jack 74 1797 797 821315 253306
Jack 75 1797 798 821316 253307
Jack 76 1797 799 821317 253308
Jack 77 1797 800 821318 253309
Jack 78 1797 801 821319 253310
Jack 79 1797 802 821320 253311
Jack 80 1797 803 821321 253312
Jack 81 1797 804 821322 253313
Jack 82 1797 805 821323 253314
Jack 83 1797 806 821324 253315
Jack 84 1797 807 821325 253316
Jack 85 1797 808 821326 253317
Jack 86 1797 809 821327 253318
Jack 87 1797 810 821328 253319
Jack 88 1797 811 821329 253320
Jack 89 1797 812 821330 253321
Jack 90 1797 813 821331 253322
Jack 91 1797 814 821332 253323
Jack 92 1797 815 821333 253324
Jack 93 1797 816 821334 253325
Jack 94 1797 817 821335 253326
-5-
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Jack 95 1797 818 821336 253327
Jack 96 1797 819 821337 253328
Harlan #1 1796 876 820863 253656
Lara #1 1796 878 820865 253657
Rich #13 2432283 814670
Rich #14 2432284 814671
Rich #15 2432285 814672
Rich #16 2432286 814673
Rich #17 2432287 814674
Rich #18 2432288 814675
Rich #21 2432289 814676
Rich #22 2432290 814677
Rich #23 2432291 814678
Rich #24 2432292 814679
Rich #39 2432293 814680
Rich #41 2432294 814681
Rich #43 2432295 814682
Rich #45 2432296 814683
Rich #47 2432297 814684
Rich 50 2432298 814685
Rich 51 2432299 814686
Rich 52 2432300 814687
-6-
EXHIBIT 10
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
FEASIBILITY STUDY
-----------------
Feasibility Study means a detailed report regarding the development of a
mine on the Newmont Property, or any part thereof that is subject to the Joint
Venture Agreement (the "Properties"), including at least the following
information:
o a description of that part of the Properties to be covered by the proposed
mine;
o the estimated recoverable reserves of minerals and the estimated
composition and content thereof;
o the proposed procedure for development, and mining production;
o results of ore amenability tests (if any);
o the nature and extent of the mine facilities proposed to be acquired which
may include mill facilities, if the size, extent and location of the ore
body makes such mill facilities feasible, in which event the report shall
also include a preliminary design for such mill;
o the total costs, including capital budget, which are reasonably required to
purchase, construct and install all structures, machinery and equipment
required for the proposed mine, including a schedule of timing of such
requirements;
o all environmental impact studies and costs;
o the period in which it is proposed that the Properties be brought into
commercial production;
o such other data and information as are reasonably necessary to substantiate
the existence of a mineral deposit of sufficient size and grade to justify
development of a mine, taking into account all relevant business, tax and
other economic considerations; and
o working capital requirements for the initial four months of operation of
the Properties as a mine or such longer period as may be reasonably
justified in the circumstances;
which is in such form as is necessary to substantially meet the standards of
North American financial institutions for the purpose of determining the
advisability of providing project financing on a commercial competitive basis
taking into account all relevant criteria deemed to be both normal and prudent
for the mining industry at that time.
EXHIBIT 11
TO AGREEMENT BETWEEN NEWMONT USA LIMITED D/B/A
NEWMONT MINING CORPORATION,
NEWMONT CAPITAL LIMITED,
VISTA GOLD CORPORATION AND VISTA NEVADA CORP.
MEMORANDUM OF AGREEMENT
KNOW ALL BY THESE PRESENT:
That the undersigned have executed and delivered their agreement in writing
bearing an effective date of October __, 2002 ("Agreement"), containing terms
and conditions, all of which are hereby made a part hereof as fully and
completely as if herein specifically set out in full, whereby (i) Newmont USA
Limited d/b/a Newmont Mining Corporation, a Delaware corporation ("Newmont"),
agreed to convey to Vista Nevada Corp., a Nevada corporation ("VNC"), its entire
interest in that Lease described on Exhibit A hereto ("the Maverick Springs
Property"), (ii) Newmont Capital Limited, a Nevada corporation ("NCL") agreed to
convey and quit claim to VNC its entire interest in the Lease and unpatented
mining claims described on Exhibit B hereto (the "Mountain View Property") (the
Maverick Springs Property and Mountain View Property are collectively referred
to herein as the "Property"), (iii) VNC agreed to convey to Newmont a royalty on
production of minerals produced from the Maverick Springs Property and the
Maverick Springs Area of Interest (described in Exhibit C hereto), and (iv) VNC
agreed to convey to NCL a royalty on production of minerals from the Mountain
View Property and the Mountain View Area of Interest (described in Exhibit D
hereto).
VNC and Vista Gold Corporation ("Vista") also agreed to maintain the
Property in good standing, including, but not limited to payment of property
taxes, payment of federal maintenance fees for unpatented mining claims,
satisfying any federal or state filing requirements for maintaining unpatented
mining claims, and fulfilling all requirements of the Leases referenced in
Exhibits A and B (the "Leases"). Prior to abandoning any unpatented mining
claims included within the Newmont Property or terminating any portion of the
Leases, within 90 years of the date of the Agreement, VNC shall provide Newmont
written notice of its intent to abandon such claims or terminate such Leases,
and provide Newmont an opportunity to elect to have such claims or leasehold
interest conveyed to it. VNC also granted to Newmont a right to elect to process
metals mined from the Property, the Maverick Springs Area of Interest and the
Mountain View Area of Interest. VNC and Vista agreed to indemnify Newmont and
NCL for liabilities arising from or relating to operations and conditions on the
Property, whether previously existing or hereafter created. These covenants, and
obligations created thereby, are binding on the parties and their respective
successors and assigns, and shall run with the subject lands.
NEWMONT USA LIMITED d/b/a
NEWMONT MINING CORPORATION
By: ___________________________
Name: _________________________
Title: ________________________
NEWMONT CAPITAL LIMITED
By: ___________________________
Name: _________________________
Title: ________________________
VISTA GOLD CORPORATION
By: ___________________________
Name: _________________________
Title: ________________________
VISTA NEVADA CORP.
By: ___________________________
Name: _________________________
Title: ________________________
-2-
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Newmont USA Limited d/b/a Newmont Mining Corporation.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
____________________________________________
Notary Public
My Commission expires:______________________
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Newmont Capital Limited.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
____________________________________________
Notary Public
My Commission expires:______________________
-3-
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Vista Gold Corporation.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
____________________________________________
Notary Public
My Commission expires:______________________
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER)
This instrument was acknowledged before me on this ___ day of
_______________, 2002, by __________________________, as ______________________
of Vista Nevada Corp.
In witness whereof, I have hereunto set my hand and affixed my official
seal the day and year first above written.
____________________________________________
Notary Public
My Commission expires:______________________
-4-
EXHIBIT A
TO MEMORANDUM OF AGREEMENT
MAVERICK SPRINGS PROPERTY
That certain Mining Lease and Agreement dated October 1, 2001 by and
between Newmont Mining Corporation and Artemis Exploration Company, as amended,
and the following described unpatented mining claims situated in Elko County and
White Pine County, Nevada:
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- -----------------------------------------------------------------------------------
WILLOW #1 968 784 NMC - 754059
WILLOW #2 968 785 NMC - 754060
WILLOW #9 968 792 NMC - 754067
WILLOW #10 968 793 NMC - 754068
WILLOW #11 968 794 NMC - 754069
WILLOW #12 968 795 NMC - 754070
WILLOW #13 968 796 NMC - 754071
WILLOW #14 968 797 NMC - 754072
WILLOW #15 968 798 NMC - 754073
WILLOW #16 968 799 NMC - 754074
WILLOW #17 968 800 NMC - 754075
WILLOW #18 968 801 NMC - 754076
WILLOW #19 968 802 NMC - 754077
WILLOW #20 968 803 NMC - 754078
WILLOW #21 968 804 NMC - 754079
WILLOW #22 968 805 NMC - 754080
WILLOW #23 968 806 NMC - 754081
WILLOW #24 968 807 NMC - 754082
WILLOW #25 968 808 NMC - 754083
WILLOW #26 968 809 NMC - 754084
WILLOW #27 968 810 NMC - 754085
WILLOW #28 968 811 NMC - 754086
WILLOW #29 968 812 NMC - 754087
WILLOW #30 968 813 NMC - 754088
WILLOW #37 968 814 NMC - 754089
WILLOW #38 968 815 NMC - 754090
WILLOW #39 968 816 NMC - 754091
WILLOW #40 968 817 NMC - 754092
WILLOW #41 968 818 NMC - 754093
WILLOW #42 968 819 NMC - 754094
WILLOW #43 968 820 NMC - 754095
WILLOW #44 968 821 NMC - 754096
WILLOW #45 968 822 NMC - 754097
WILLOW #46 968 823 NMC - 754098
WILLOW #47 968 824 NMC - 754099
WILLOW #48 968 825 NMC - 754100
WILLOW #49 968 826 NMC - 754101
WILLOW #50 968 827 NMC - 754102
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- -----------------------------------------------------------------------------------
WILLOW #51 968 828 NMC - 754103
WILLOW #52 968 829 NMC - 754104
WILLOW #53 968 830 NMC - 754105
WILLOW #54 968 831 NMC - 754106
WILLOW 55 1025 487 NMC - 785303
WILLOW 56 1025 488 NMC - 785304
WILLOW 57 1025 489 NMC - 785305
WILLOW 63 1025 495 NMC - 785311
WILLOW 65 1025 497 NMC - 785313
WILLOW 66 1025 498 NMC - 785314
WILLOW 67 1025 499 NMC - 785315
WILLOW 68 1025 500 NMC - 785316
WILLOW 69 1025 501 NMC - 785317
WILLOW 70 1025 502 NMC - 785318
WILLOW 71 1025 503 NMC - 785319
MAVERICK #1 968 832 NMC - 754107
MAVERICK #3 968 834 NMC - 754109
MAVERICK #5 968 836 NMC - 754111
MAVERICK #7 968 838 NMC - 754113
MAVERICK #8 968 839 NMC - 754114
MAVERICK #9 968 840 NMC - 754115
MAVERICK #10 968 841 NMC - 754116
MAVERICK #11 968 842 NMC - 754117
MAVERICK #12 968 843 NMC - 754118
MAVERICK #13 968 844 NMC - 754119
MAVERICK #14 968 845 NMC - 754120
MAVERICK #15 968 846 NMC - 754121
MAVERICK #16 968 847 NMC - 754122
MAVERICK #17 968 848 NMC - 754123
MAVERICK #18 968 849 NMC - 754124
MAVERICK #39 968 864 NMC - 754140
MAVERICK #40 968 865 NMC - 754141
MAVERICK #41 968 866 NMC - 754142
MAVERICK #42 968 867 NMC - 754143
MAVERICK 524 1025 475 NMC - 785291
MAVERICK 526 1025 477 NMC - 785293
MAVERICK 528 1025 479 NMC - 785295
MAVERICK 529 1025 480 NMC - 785296
MAVERICK 530 1025 481 NMC - 785297
MAVERICK 531 1025 482 NMC - 785298
MAVERICK 67 1 38907 NMC - 826140
MAVERICK 68 1 38908 NMC - 826141
MAVERICK 69 1 38909 NMC - 826142
MAVERICK 70 1 38910 NMC - 826143
MAVERICK 71 1 38911 NMC - 826144
MAVERICK 72 1 38912 NMC - 826145
MAVERICK 73 1 38913 NMC - 826146
MAVERICK 74 1 38914 NMC - 826147
NMS 1 - NMS 94 1 43585 - 43640 NMC - 826738 - 826831
-2-
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- -----------------------------------------------------------------------------------
NMS 96 1 43641 NMC - 826832
NMC 98 1 43642 NMC - 826833
NMS 100 1 43643 NMC - 826834
NMS 102 1 43644 NMC - 826835
NMS 104 1 43645 NMC - 826836
NMS 106 1 43646 NMC - 826837
NMS 107 - NMS 166 1 43647 - 43706 NMC - 826838 - 826897
-3-
EXHIBIT B
TO MEMORANDUM OF AGREEMENT
MOUNTAIN VIEW PROPERTY
That certain Lease/Option Agreement effective June 30, 2000, by and between
Raymond W. and Leslie A. Wittkopp, and Franco-Nevada Mining Corporation, Inc.,
as amended, and the following described unpatented lode mining claims situated
in Washoe County, Nevada:
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Mt. View #1 1481 975 660347 142372
Mt. View #2 1481 976 660348 142373
Mt. View #3 1481 977 660349 142374
Mt. View #4 1481 978 660350 142375
Mt. View #5 1632 124 739181 196207
Mt. View #6 1644 549 745360 202456
Big R #1 1646 913 746334 203087
Jack 1 1797 724 821242 253233
Jack 2 1797 725 821243 253234
Jack 3 1797 726 821244 253235
Jack 4 1797 727 821245 253236
Jack 5 1797 728 821246 253237
Jack 6 1797 729 821247 253238
Jack 7 1797 730 821248 253239
Jack 8 1797 731 821249 253240
Jack 9 1797 732 821250 253241
Jack 10 1797 733 821251 253242
Jack 11 1797 734 821252 253243
Jack 12 1797 735 821253 253244
Jack 13 1797 736 821254 253245
Jack 14 1797 737 821255 253246
Jack 15 1797 738 821256 253247
Jack 35 1797 758 821276 253267
Jack 38 1797 761 821279 253270
Jack 63 1797 786 821304 253295
Jack 64 1797 787 821305 253296
Jack 65 1797 788 821306 253297
Jack 66 1797 789 821307 253298
Jack 67 1797 790 821308 253299
Jack 68 1797 791 821309 253300
Jack 69 1797 792 821310 253301
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Jack 70 1797 793 821311 253302
Jack 71 1797 794 821312 253303
Jack 72 1797 795 821313 253304
Jack 73 1797 796 821314 253305
Jack 74 1797 797 821315 253306
Jack 75 1797 798 821316 253307
Jack 76 1797 799 821317 253308
Jack 78 1797 801 821319 253310
Jack 79 1797 802 821320 253311
Jack 80 1797 803 821321 253312
Jack 81 1797 804 821322 253313
Jack 82 1797 805 821323 253314
Jack 83 1797 806 821324 253315
Jack 84 1797 807 821325 253316
Jack 85 1797 808 821326 253317
Jack 86 1797 809 821327 253318
Jack 87 1797 810 821328 253319
Jack 88 1797 811 821329 253320
Jack 89 1797 812 821330 253321
Jack 90 1797 813 821331 253322
Jack 91 1797 814 821332 253323
Jack 92 1797 815 821333 253324
Jack 93 1797 816 821334 253325
Jack 94 1797 817 821335 253326
Jack 95 1797 818 821336 253327
Jack 96 1797 819 821337 253328
Harlan #1 1796 876 820863 253656
Lara #1 1796 878 820865 253657
Rich #13 2432283 814670
Rich #14 2432284 814671
Rich #15 2432285 814672
Rich #16 2432286 814673
Rich #17 2432287 814674
Rich #18 2432288 814675
Rich #21 2432289 814676
Rich #22 2432290 814677
Rich #23 2432291 814678
Rich #24 2432292 814679
Rich #39 2432293 814680
Rich 50 2432298 814685
Rich 51 2432299 814686
-2-
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Rich 52 2432300 814687
Jack 67A 2516120 822239
Jack 77R 2516119 822240
Rich 61 2516129 822249
Rich 63 2516131 822251
Rich 64 2516132 822252
Rich 66 2516134 822254
Rich 68 2516136 822256
Rich 70 2516138 822258
Rich 72 2516140 822260
Rich 74 2516142 822262
Rich 76 2516144 822264
Rich 78 2516146 822266
Rich 80 2516148 822268
Rich 81 2516149 822269
Rich 82 2516150 822270
Rich 83 2516151 822271
Rich 84 2516152 822272
Rich 85 2516153 822273
Rich 86 2516154 822274
Rich 87 2516155 822275
Rich 88 2516156 822276
Rich 89 2516157 822277
Rich 90 2516158 822278
Rich 91 2516159 822279
Rich 92 2516160 822280
Rich 93 2516161 822281
Rich 94 2516162 822282
Rich 95 2516163 822283
Rich 96 2516164 822284
Rich 97 2516165 822285
Rich 98 2516166 822286
Rich 99 2516167 822287
Rich 100 2516168 822288
Rich 101 2516169 822289
Rich 102 2516170 822290
Rich 103 2516171 822291
Rich 104 2516172 822292
Rich 105 2516173 822293
Rich 106 2516174 822294
Rich 107 2516175 822295
-3-
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Rich 108 2516176 822296
Rich 109 2516177 822297
Rich 110 2516178 822298
Rich 111 2516179 822299
Rich 112 2516180 822300
Rich 113 2516181 822301
Rich 114 2516182 822302
Rich 115 2516183 822303
Rich 116 2516184 822304
Rich 117 2516185 822305
Rich 118 2516186 822306
Rich 119 2516187 822307
Rich 120 2516188 822308
Rich 121 2516189 822309
-4-
EXHIBIT C
TO MEMORANDUM OF AGREEMENT
MAVERICK SPRINGS AREA OF INTEREST
The Maverick Springs Area of Interest includes all land situated within one
mile from the exterior boundary of the following unpatented mining claims as
they were located as of October 1, 2001:
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- -----------------------------------------------------------------------------------
WILLOW #1 968 784 NMC - 754059
WILLOW #2 968 785 NMC - 754060
WILLOW #9 968 792 NMC - 754067
WILLOW #10 968 793 NMC - 754068
WILLOW #11 968 794 NMC - 754069
WILLOW #12 968 795 NMC - 754070
WILLOW #13 968 796 NMC - 754071
WILLOW #14 968 797 NMC - 754072
WILLOW #15 968 798 NMC - 754073
WILLOW #16 968 799 NMC - 754074
WILLOW #17 968 800 NMC - 754075
WILLOW #18 968 801 NMC - 754076
WILLOW #19 968 802 NMC - 754077
WILLOW #20 968 803 NMC - 754078
WILLOW #21 968 804 NMC - 754079
WILLOW #22 968 805 NMC - 754080
WILLOW #23 968 806 NMC - 754081
WILLOW #24 968 807 NMC - 754082
WILLOW #25 968 808 NMC - 754083
WILLOW #26 968 809 NMC - 754084
WILLOW #27 968 810 NMC - 754085
WILLOW #28 968 811 NMC - 754086
WILLOW #29 968 812 NMC - 754087
WILLOW #30 968 813 NMC - 754088
WILLOW #37 968 814 NMC - 754089
WILLOW #38 968 815 NMC - 754090
WILLOW #39 968 816 NMC - 754091
WILLOW #40 968 817 NMC - 754092
WILLOW #41 968 818 NMC - 754093
WILLOW #42 968 819 NMC - 754094
WILLOW #43 968 820 NMC - 754095
WILLOW #44 968 821 NMC - 754096
WILLOW #45 968 822 NMC - 754097
WILLOW #46 968 823 NMC - 754098
WILLOW #47 968 824 NMC - 754099
WILLOW #48 968 825 NMC - 754100
WILLOW #49 968 826 NMC - 754101
WILLOW #50 968 827 NMC - 754102
WILLOW #51 968 828 NMC - 754103
WILLOW #52 968 829 NMC - 754104
CLAIM NAME BOOK PAGE BLM SERIAL NUMBER
- -----------------------------------------------------------------------------------
WILLOW #53 968 830 NMC - 754105
WILLOW #54 968 831 NMC - 754106
WILLOW 55 1025 487 NMC - 785303
WILLOW 56 1025 488 NMC - 785304
WILLOW 57 1025 489 NMC - 785305
WILLOW 63 1025 495 NMC - 785311
WILLOW 65 1025 497 NMC - 785313
WILLOW 66 1025 498 NMC - 785314
WILLOW 67 1025 499 NMC - 785315
WILLOW 68 1025 500 NMC - 785316
WILLOW 69 1025 501 NMC - 785317
WILLOW 70 1025 502 NMC - 785318
WILLOW 71 1025 503 NMC - 785319
MAVERICK #1 968 832 NMC - 754107
MAVERICK #3 968 834 NMC - 754109
MAVERICK #5 968 836 NMC - 754111
MAVERICK #7 968 838 NMC - 754113
MAVERICK #8 968 839 NMC - 754114
MAVERICK #9 968 840 NMC - 754115
MAVERICK #10 968 841 NMC - 754116
MAVERICK #11 968 842 NMC - 754117
MAVERICK #12 968 843 NMC - 754118
MAVERICK #13 968 844 NMC - 754119
MAVERICK #14 968 845 NMC - 754120
MAVERICK #15 968 846 NMC - 754121
MAVERICK #16 968 847 NMC - 754122
MAVERICK #17 968 848 NMC - 754123
MAVERICK #18 968 849 NMC - 754124
MAVERICK #39 968 864 NMC - 754140
MAVERICK #40 968 865 NMC - 754141
MAVERICK #41 968 866 NMC - 754142
MAVERICK #42 968 867 NMC - 754143
MAVERICK 524 1025 475 NMC - 785291
MAVERICK 526 1025 477 NMC - 785293
MAVERICK 528 1025 479 NMC - 785295
MAVERICK 529 1025 480 NMC - 785296
MAVERICK 530 1025 481 NMC - 785297
MAVERICK 531 1025 482 NMC - 785298
MAVERICK 67 1 38907 NMC - 826140
MAVERICK 68 1 38908 NMC - 826141
MAVERICK 69 1 38909 NMC - 826142
MAVERICK 70 1 38910 NMC - 826143
MAVERICK 71 1 38911 NMC - 826144
MAVERICK 72 1 38912 NMC - 826145
MAVERICK 73 1 38913 NMC - 826146
MAVERICK 74 1 38914 NMC - 826147
-2-
EXHIBIT D
TO MEMORANDUM OF AGREEMENT
MOUNTAIN VIEW AREA OF INTEREST
The Mountain View Area of Interest includes all land within 0.5 miles of
the exterior boundary of the following unpatented mining claims, as they were
located as of June 30, 2000, and as generally depicted on Exhibit A to that
Lease/Option Agreement dated June 3, 2000, as amended on April 16, 2001 and
June 6, 2002, between Franco-Nevada Mining Corporation, Inc., and Raymond W. and
Leslie A. Wittkopp, a memorandum of which was recorded in the Washoe County
Recorder's Office on August 11, 2000, as Document 2472553.
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Mt. View #1 1481 975 660347 142372
Mt. View #2 1481 976 660348 142373
Mt. View #3 1481 977 660349 142374
Mt. View #4 1481 978 660350 142375
Mt. View #5 1632 124 739181 196207
Mt. View #6 1644 549 745360 202456
Big R #1 1646 913 746334 203087
Jack 1 1797 724 821242 253233
Jack 2 1797 725 821243 253234
Jack 3 1797 726 821244 253235
Jack 4 1797 727 821245 253236
Jack 5 1797 728 821246 253237
Jack 6 1797 729 821247 253238
Jack 7 1797 730 821248 253239
Jack 8 1797 731 821249 253240
Jack 9 1797 732 821250 253241
Jack 10 1797 733 821251 253242
Jack 11 1797 734 821252 253243
Jack 12 1797 735 821253 253244
Jack 13 1797 736 821254 253245
Jack 14 1797 737 821255 253246
Jack 15 1797 738 821256 253247
Jack 35 1797 758 821276 253267
Jack 38 1797 761 821279 253270
Jack 63 1797 786 821304 253295
Jack 64 1797 787 821305 253296
Jack 65 1797 788 821306 253297
Jack 66 1797 789 821307 253298
Jack 67 1797 790 821308 253299
Jack 68 1797 791 821309 253300
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME BOOK PAGE DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Jack 69 1797 792 821310 253301
Jack 70 1797 793 821311 253302
Jack 71 1797 794 821312 253303
Jack 72 1797 795 821313 253304
Jack 73 1797 796 821314 253305
Jack 74 1797 797 821315 253306
Jack 75 1797 798 821316 253307
Jack 76 1797 799 821317 253308
Jack 77 1797 800 821318 253309
Jack 78 1797 801 821319 253310
Jack 79 1797 802 821320 253311
Jack 80 1797 803 821321 253312
Jack 81 1797 804 821322 253313
Jack 82 1797 805 821323 253314
Jack 83 1797 806 821324 253315
Jack 84 1797 807 821325 253316
Jack 85 1797 808 821326 253317
Jack 86 1797 809 821327 253318
Jack 87 1797 810 821328 253319
Jack 88 1797 811 821329 253320
Jack 89 1797 812 821330 253321
Jack 90 1797 813 821331 253322
Jack 91 1797 814 821332 253323
Jack 92 1797 815 821333 253324
Jack 93 1797 816 821334 253325
Jack 94 1797 817 821335 253326
Jack 95 1797 818 821336 253327
Jack 96 1797 819 821337 253328
Harlan #1 1796 876 820863 253656
Lara #1 1796 878 820865 253657
Rich #13 2432283 814670
Rich #14 2432284 814671
Rich #15 2432285 814672
Rich #16 2432286 814673
Rich #17 2432287 814674
Rich #18 2432288 814675
Rich #21 2432289 814676
Rich #22 2432290 814677
Rich #23 2432291 814678
Rich #24 2432292 814679
Rich #39 2432293 814680
-2-
WASHOE COUNTY
- --------------------------------------------------------------------------------------
BLM SERIAL
NUMBER
CLAIM NAME DOCUMENT # ("NMC")
- --------------------------------------------------------------------------------------
Rich #41 2432294 814681
Rich #43 2432295 814682
Rich #45 2432296 814683
Rich #47 2432297 814684
Rich 50 2432298 814685
Rich 51 2432299 814686
Rich 52 2432300 814687
-3-