Exhibit 10.3
NEVADA RAE GOLD - CRESCENT VALLEY PERMITTING
CONTRACTUAL AGREEMENT NRG-04-01-CR
This Agreement is entered into this 6th day of January 2004 between the Nevada
Rae Gold (NRG) whose address is 157 Adelaide Street West Suite 600 Toronto ON
M5H 4E7 and Chemrox Technologies (Chemrox) whose address is 267-B East 29th St.,
Suite 136, Loveland, Colorado (www.Chemrox.com).
PROJECT OBJECTIVE
Purpose of this contract is to procure all necessary permits for operating a
mine in Blackrock Canyon and supporting mill that utilizes physical processing.
SCOPE OF SERVICES
1. Water Sample Collection and Analysis
Chemrox will collect water samples up to two wells to be
analyzed for the appropriate chemistry. Chemrox will determine
potential contamination from these wells or issues associated
with retention or discharge from the processing facility.
2. Pipeline and Transmission Line ROW Permitting
Appropriate surveys will be conducted to permit access across
BLM to the Wayne Morris or other pipeline scenarios to the mine
property if applicable.
3. Mine Site Biological and Archeological Survey
All required biological and archeological surveys will be
undertaken at the Blackrock Canyon mine site for BLM permitting
will be undertaken by Chemrox.
4. Mine Feed Collection and Analysis
Analysis of representative mine material will be collected and
analyzed for the Water Pollution Control Permit will be
collected and conducted by Chemrox.
5. Access Permitting for Pipeline
In addition to the requirements for biological and archeological
ROW surveys, Chemrox will provide assistance to NRG for any
access permitting with third parties as required.
6. Water Use Permitting with State Engineer's Office
Chemrox will prepare all of the necessary permit applications
for water rights transfer or the drilling or use of new wells.
7. Preparation of Mine and Reclamation Plan for NDEP
Chemrox will support NRG in the preparation of the Mine Plan and
prepare the Reclamation Plan for the NRG application to the
NDEP.
8. Preparation and Submittal of Plan of Operations to BLM
Chemrox will prepare a POO for review by NRG based upon Task 7
above.
9. Permitting for Road Access
Chemrox will conduct any historical reviews and biological,
archeological and fugitive dust surveys required to obtain
existing and new road surveys that might be required by BLM or
other municipalities.
10. Other Surveys Required for an Environmental Analysis for BLM
Chemrox will conduct any additional surveys that might be
required by BLM for an Environmental Analysis (EA) for obtaining
a permit for mining and milling at Blackrock Canyon excepting
that the cost of any new well drilling or analysis is not
included.
11. Preparation of Biological Assessment
A separate, Biological Assessment will be prepared by Chemrox
for incorporation in the Environmental Assessment or Notice of
Intent, as appropriate to obtain a mining permit with BLM.
12. Preparation and Submittal of Preliminary Water Control Pollution
Plan for NDEP
Chemrox will prepare an application for a Water Pollution
Control Permit based upon the initial mining scenario developed
by NRG.
13. Public Comment Responses and Hearings
Chemrox will assist NRG in all public relations issues
associated with the permit applications including but not
limited top participation in Public Hearings or response to
concerns expressed by third parties regarding the permit
applications.
14. NDEP Deficiency Follow-up
Chemrox will expeditiously respond to any deficiencies
identified by NDEP in the permit applications. Requirements for
additional physical data or commitments of future expenditures
to NDEP will be coordinated by NRG.
15. BLM Deficiency Follow-up
Chemrox will expeditiously respond to any deficiencies
identified by BLM in the permit applications. Requirements for
additional physical data or commitments of future expenditures
to NDEP will be coordinated by NRG.
16. COE Permitting for Wetlands and Stream Excavations
Chemrox will procure any required permits with the Corps of
Engineers associated with the mine and reclamation plan.
17. NDEP Permitting for Hazardous Waste Handling, Storm Water and
Air Quality
Chemrox will procure any additional permits with the State
associated with waste handling, storm water control and air
quality protection or reporting.
18. Local and County Permitting
Chemrox will procure all other local and County permits
associated with the approved NDEP Mine and Reclamation Plan.
19. Preparation and Submittal of Environmental Assessment to BLM
Chemrox will prepare an environmental assessment as required by
BLM.
20. Reclamation Bond Estimation
Chemrox will estimate the lowest possible reclamation cost
pursuant to NDEP and BLM standards. Chemrox will coordinate with
NRG prior to releasing this estimate to the Agencies as a third
party evaluation to ensure concurrence by NRG.
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21. Meetings with Agencies and Other Stakeholders
The project scope includes all costs associated with meetings
that might be required for ensuring completeness in the permit
applications.
22. Communication and Status Reporting
Chemrox will communicate on a frequent basis with NRG to ensure
that schedules and developments of significance are understood.
Chemrox will coordinate with NRG in all communication to
Agencies and any third parties.
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SCHEDULE
Chemrox will work with NRG to achieve the shortest possible timeframe for permit
approval. At the present time it is anticipated that it will take 10 months.
COMPENSATION, TERMS OF PAYMENT AND FINANCIAL REPORTING
This is a fixed cost contract for the sum of $99,995. This will be paid in
monthly increments of $10,000 starting January 6th and continuing for a
ten-month period.
TERMINATION, SUSPENSION OF CONTRACT AND CONTRACTUAL MODIFICATIONS
NRG may cancel this contract for any reason within 30-day written notification
only on the 1st of a month to facilitate Chemrox terminating the contract
expenditures. Payment after the contracted date may result in delays in
schedule.
ASSUMPTIONS AND MISCELLANEOUS ITEMS
(a) This Agreement does NOT include the payment of any fees for
permit applications or the reclamation bond.
(b) Changes in Scope shall require a negotiated Change Order.
(c) This Agreement shall not be assignable by either Party without
the prior written consent of the other party hereto.
(d) Chemrox designates, Sean C. Muller (smuller@chemrox.com), as a
Point of Contact for all technical issues. Mitch Geisler shall review and
authorized any financial or contractual changes. Chemrox representatives can be
reached at (970) 217-6483 or by facsimile at (970) 663-5339.
(e) Unless otherwise specified in writing, NRG project
representative shall be John Rae. However, Mitch Geisler shall be copied on all
correspondences to John Rae and governmental Agencies.
(f) Chemrox will be responsible for its activities and that of its
employees while performing work under this Agreement. Chemrox agrees to
indemnify the NRG or its successors for any injury, or injuries, sustained in
the performance of the work, and will take all necessary steps to ensure the
safety of its employees that perform work under this Agreement.
(g) Upon modification of any provision of this agreement, all other
provisions of this agreement shall remain in full effect.
ACCEPTANCE OF TERMS AND CONDITIONS
All parties to this agreement and their potential successors agree to all of the
provisions outlined above and the attachments hereto appended. IN WITNESS
WHEREOF, the parties to this Agreement referred to as NRG-04-01-CR have executed
this Agreement as of the day and year first written.
NEVADA RAE CORPORATION CHEMROX TECHNOLOGIES
By: Mitch Geisler, President By: Sean C. Muller, Operations Manager
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Signature
Date: Date: 01-06-04
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