Mr.Barton
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21888 - 61st Avenue
Langley, BC V3A 6H4
Canada
6418 NE Agate Beach Lane
Bainbridge Island, Washington
USA 98110-1000
November 21, 2002
Twin Ventures Ltd.
Attention: David Deering
Re: Acquisition of Mineral Claims, LILLOOET Lake Region,
Southwest BRITISH COLUMBIA, CANADA
The following terms and conditions are applicable for the sale of forty mineral
claim units near Lillooet Lake, British Columbia, Canada by Garth Barton.
(hereinafter referred to as "Mr.Barton") to Twin Ventures Ltd.. (herein after
referred to as "TVL"). Both Mr.Barton and TVL agree to the following:
a) Mr.Barton will transfer title to forty (40) mineral claim units listed
in Exhibit "A" and outlined in Exhibit "B" to TVL within 21 days of
this agreement. These claims will be contiguous hard rock mineral
claims covering in excess of 2,500 acres.
b) Mr.Barton will provide to TVL within 21 days of this agreement a
geological report summarizing the mineral claims, particulars of
recent sampling and geological investigation, copies of all records, a
budget for further work and recommendations, and all other information
and material relevant to a geological report requisite for filing with
the regulatory bodies.
c) Mr.Barton will ensure that the claims shall be in good standing for at
least 18 months from the date of this agreement
d) Mr.Barton shall sell 100% (one hundred percent) interest in the claims
to TVL subject to a 2 1/2% Net Smelter Royalty (NSR) and a 7 1/2%
Gross Rock Royalty (GRR) for a total of $33,500. 1 1/2% of the NSR can
be acquired for $1.0 million within 12 months from commencement of
commercial production. Advance
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royalties of $25,000 shall be paid annually commencing 36 months from
date of signature of this agreement.
e) If TVL fails to make the advance royalty payments on the 36 month
anniversary of the signature of this agreement, as described in (d)
above, then TVL agrees to transfer ownership of the subject mining
claims to Mr.Barton within no less than a 10 day period.
f) As part of the inclusive sale price, Mr.Barton will provide geological
consulting services for the claims and will maintain the claims in
good standing for a period of 36 months with fees to be advanced by
TVL prior to the anniversary dates. Said fees are to be deducted from
the total cost.
g) For a period of 36 months from the date of signature of this
agreement, and except for mining claims owned at the date of signature
of this agreement, Mr.Barton grants TVL the right to purchase any
mining claims owned or purchased by Mr.Barton located within a
one-mile distance from any of the claims listed in Exhibit "A" and
within the area outlined on map Exhibit "B" for price equivalent to
the cost of acquiring such claims by Mr.Barton.
TVL shall:
i) Pay $13,500 to Mr.Barton upon delivery of report and transfer of
property title, but not later than 21 days from signing.
ii) Pay $2,500 on or before February 28, 2003.
iii) Pay $2,500 to Mr.Barton at 12 months from date of title registration.
iv) Pay $2,500 to Mr.Barton at 24 months from date of title registration.
v) the name and number of an individual or corporate Free Miner
Certificate to transfer the claims into.
vi) the balance owing to a total of $33,500 payable no later than 36
months from date of signature of this agreement.
Both parties agree that:
|X| time is of the essence
|X| any part of this agreement, in whole or in part, is
assignable by either with no approvals required
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|X| the total purchase price includes assessment work
requirements to be undertaken by Mr.Barton to maintain the
claims in good standing By signature witnessed below, the
undersigned hereby acknowledge that they have read and
understood and agree to the aforementioned terms.
Dated at Vancouver, British Columbia, Canada this ___ day of ___________, 2002.
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David Deering, P.Eng. Garth Barton
President, Twin Ventures Ltd.
Witness Witness
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Print name Print Name
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Footnotes to Agreement
1) All dollar figures are denoted in the currency of the United States of
America
2) The total to be paid by TVL to Mr.Barton or third parties for the
claims is $20,000
3) To maintain claims in British Columbia annual assessment work is
required of $100 (CDN) in year 1 per claim, followed by $200 per claim
thereafter. (One metric claim unit = 25 hectares). There is a filing
fee of $10 per $100 expended per claim. Therefore, if 40 units (1000
Ha) then $4,000 (CDN) of work plus $400 of filing fees in year 1. In
year 3 and following, for 40 units, $8,000 (CDN) of work plus filing
fees of $800.
4) Attached are definitions of NSR and GRR.
5) As much as possible of the third party billings will be made directly
to Twin Ventures Ltd. for payment.
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Advance Royalty Payments means from time to time payments to the Optionor by the
Optionee before Commencement of Commercial Production of Minerals.
Commencement of Commercial Production, with respect to Minerals or Rock, as the
case may be, means:
(a) if a mill is located on the subject property, the last day
of a period of forty (40) consecutive days in which, for not
less than thirty (30) days, the mill processed Mineral or
Rock from the Property at 60% of its rated capacity; or
(b) if no Mill is located on the Property, the last day of the
first period of thirty (30) consecutive days during which
Mineral or Rock has been shipped from the Property on a
reasonably regular basis for the purpose of earning
revenues; or
(c) with respect to Rock, following the 30th day of extraction
for commercial use.
No period of time during which ore or concentrate is shipped from the Property
for testing purposes or during which milling operations are undertaken as
initial tune-up will be taken into account in determining the date of
Commencement of Commercial Production.
Gross Rock Revenue means, for any period, the gross proceeds received by the
Optionee in that period from the sale of Rock produced from the Property less
any treatment, beneficiation or other changes or penalties deducted by the
purchase to whom such Rock is shipped, less:
(a) all costs of the Optionee associated with such sales
involving handling, weighing, sampling, determination of
water content, insuring, packaging and transporting Rock;
(b) the costs of marketing, including rebates or allowances made
or given; and
(c) any sales, severance, gross production, privilege or similar
taxes (other than income taxes or mining taxes based on
income).
Minerals means the ores or concentrates of minerals, as that term is defined in
the Mineral Tenure Act (British Columbia), and the rock that is part of such
ores and concentrates sold by the Optionee.
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Net Smelter Return means, for any period the difference between:
(a) the sum of:
(i) the gross proceeds received by the Optionee in
that period from the sale of Minerals produced
from the property to a party that is arm's length
to the Optionee, or that would have been received
by the Optionee if the purchase of the Minerals
were at arm's length to the Optionee; and
(ii) in the case of the sale of Minerals that are ores
that have not been processed in a Mill, the
estimated cost that would have been incurred in
crushing and beneficiating such Minerals in a Mill
as agreed by the parties or otherwise determined
by a competent mining or metallurgical engineer;
and
(b) the sum of:
(i) all amounts paid on account of Advance Royalty
Payments;
(ii) any insurance costs in connection with shipping
such Minerals;
(iii) any costs of transport;
(iv) all costs of the Optionee associated with such
sales involving handling, weighing, sampling,
determination of water content, insuring and
packaging;
(v) the costs of marketing, adjusted for rebates or
allowance made or given;
(vi) any sales, severance, gross production, privilege
or similar taxes (other than income taxes or
mining taxes based on income) assessed on or in
connection with the Minerals or the value thereof;
and
(vii) any treatment, beneficiation or other charges or
penalties deducted by any smelter or refinery to
which such Minerals are shipped that have not been
previously deducted in the computation of gross
proceeds.
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Net Smelter Royalty means the percentage of Net Smelter Return from time to time
payable to the Optionor after Commencement of Commercial Production from the
sale of Minerals.
Rock means all substances that are mined from the Property and sold by the
Optionee that are not Minerals.
Rock Royalty means the amount of royalty from time to time payable to the
Optionor after Commencement of Commercial Production from the sale of Rock
pursuant to Section 11.06.
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Exhibit A
Mineral Claims being acquired by Twin Ventures Ltd.
Claim Name Units Record # Map Sheet
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Ritz 20 398116 M092J/01W, M092J/08W
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Ritz 1 1 398117 M092J/08W
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Ritz 2 1 398118 M092J/08W
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Ritz 3 1 398119 M092J/08W
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Ritz 4 1 398120 M092J/08W
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Ritz 5 1 398121 M092J/08W
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Ritz 6 1 398122 M092J/08W
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Ritz 7 1 398123 M092J/08W
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Ritz 8 1 398124 M092J/08W
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Ritz 9 1 398125 M092J/08W
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Ritz 10 1 398126 M092J/08W
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Ritz 11 1 398127 M092J/08W
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Ritz 12 1 398128 M092J/08W
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Ritz 13 1 398129 M092J/08W
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Ritz 14 1 398130 M092J/08W
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Ritz 15 1 398131 M092J/08W
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Ritz 16 1 398132 M092J/08W
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Ritz 17 1 398133 M092J/08W
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Ritz 18 1 398134 M092J/08W
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Ritz 19 1 398135 M092J/08W
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Ritz 20 1 398136 M092J/08W
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