EXHIBIT 10.12
Yukon Gold Corporation, Inc
[LOGO]
55 York Street, Suite 401, Toronto, Ontario M5J 1R7
Telephone (416) 865-9790 Facsimile (416) 865-1250
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U.S. Toll Free 1-800-295-0671
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August 17, 2006
To the Members of the Hinton Syndicate
Richard Ewing
Box 111
Mayo, Yukon M0B 1M0 Fax: 867-996-2927
James B. Smith
2726 Mara Drive
Coquitlam, BC V3C 5R9 Email: laxey@shaw.ca
Robert Wagner
Site 1, Box 7
Keno City, Yukon Y0B 1J0 Fax: 867-996-2927
J. Malcolm Slack
5920 Winston Churchill Blvd.
RR#1
Erin, ON NOB ITO Fax: 519-833-7515
Gentlemen:
We are writing to confirm our agreement today regarding deferral of
certain work program expenses required to be incurred under our Agreement
between Yukon Gold Corporation, Inc. ("Yukon Gold"), Yukon Gold Corp. ("YGC"),
and the Hinton Syndicate made as of July of 2002 and amended as of July 7, 2005
(the "Agreement").
The Agreement calls for work program expenses totaling CDN$750,000 to be
incurred by December 31, 2006. To date, YGC has incurred between CDN$300,000 and
$350,000 in such work program expenses. We will know the exact number in a few
weeks. We have agreed that the balance of the funds to be incurred
(approximately CDN$350,000 to CDN $400,000) may be incurred before December 31,
2007 without default under the Agreement. Funds currently held in our dedicated
Mount Hinton bank account will be withdrawn and replaced to meet work program
expenditures next year.
We further agree that Yukon Gold will not have earned a 25% interest in
the mineral claims of the Hinton Syndicate (as provided in Section 2.2 of the
Agreement) until the work program expenditures that we have agreed to defer have
been incurred and CDN$1,500,000 in work program expenditures have been incurred.
Please evidence your agreement in the space below. We appreciate your
cooperation.
Sincerely,
YUKON GOLD CORPORATION, INC.
By: /s/ Howard Barth
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Howard Barth
President and CEO
By: /s/ Ken Hill
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Ken Hill
Vice- President, Mining Operations
AGREED:
HINTON SYNDICATE
By: /s/ Richard Ewing
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Richard Ewing
By: /s/ James Smith
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James Smith
By: /s/ Robert Wagner
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Robert Wagner
By: /s/ Malcolm Slack
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Malcolm Slack
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