Exhibit 10.17
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|Fr: xxxxxxxxxxxxxxxxxxxxxxxx | November 19, 2007
|To: xxxxxxxxxx/Spirit Explorations| Confidential
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| Term Sheet 1 |
|Asset Backed Notes|
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Spirit Exploration
1 Issuer Inc. US OTC- Pink Sh
Asset Backed
2 Type of Issue Notes Regulation S
3 Amount of Issue US $20,000,000- Gross Proceeds
Face Value
4 No. of Notes Issued 20,000 $1,000- per note
Calculated on 360-
5 Coupon 15% p.a. day basis
Paid via
Supervising
6 Coupon Payable Semi-Annually Trustee item 14
No extension
7 Term of Notes 5 years provisions apply
8 Issue Date December 05 2007 Target Date
9 Maturity Date December 04 2012 Also Redemption Date
Mining
Muluncay Project, Enhancement
10 Use of Proceeds (Primary) Ecuador Provided
Muluncay Project,
11 Security Ecuador Via Trust Deed
5% of Net
Proceeds for Offset Coupon and
12 Sinking Fund Provision Mining Provision
13 Trustee/Counsel Cutler Law Group Augusta, GA, USA
Or As Per Cutler
14 Supervising Trustee Cutler Law Group Appointment
15 Transfer Agent Cutler Law Group For Notes
5% Flat of Item 3 above,
16 Underwriting Fees Gross Proceeds payable at closing
xxxxxxxxxxxxxx Sub-underwriter
17 Lead Underwriters xxxxxxxxxxxxxxxxxx List to be Provided
Management fee
xxxxxxxxxxxxxx inclusive in
18 Managers xxxxxxxxxxxxxxxxxx Item 16
Over-the-
19 Listing Counter Only Non-US Markets
Electronic
20 Post-closing pricing agent xxxxxxxxxxxxxxxxx Networks
As per non-US persons
21 Transfer Restrictions Regulation S only (12 months)
List to be As per usual
provided by disclosure
22 Disclosure Documents Issuer guidelines
Determined by
23 Implied Rating AAA- (S&P) Managers
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| Term Sheet 2 |
| Common Shares |
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Spirit Explorations,
1 Issuer Inc. US OTC- Pink Sh
2 Type of Issue Common Shares Regulation S
3 No of Shares Issued 500,000 Ref. item 4
30-day Trading Per daily closing data,
4 Issue Price per Share weighted average Date of Issue
5 Date of Issue December 08 2007 Target
Also see item 10 of
6 Use of Proceeds Provided Term Sheet-1
7 Trustee/Counsel Cutler Law Group Augusta, GA, USA
8 Receiging & Payin Agent Cutler Law Group For Proceeds
Portland, Oregon,
9 Transfer Agent Transfer Online USA
12 months,
10 Transfer Restrictions Regulation S non-US Persons
Payable from
11 Underwriting Fees 17.5% Flat proceeds, at closing
xxxxxxxxxxxxxx Sub-Underwriter list
12 Lead Underwriters xxxxxxxx to be provided
xxxxxxxxxxxxxx
xxxxxxxxxxxxxxx Management fee
13 Managers xxxxxxxx inclusive in Item 11
List to be provided As per usual
14 Disclosure Documents by Issuer disclosure guidelines
Prepared by
15 Offering Circular Managers Short Form
Registration
Document- 4
16 Underlying Condition months Re. Cutler Law Group
17 Put Options Not Applicable NA
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|Risk Buyers ************************
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|Investment Assurance ***********QP***********
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|Approved./Code 7709/sp/eq/191107| Total 2 pages
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