UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 16d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of MARCH, 2012
Commission File Number: 001-33638
INTERNATIONAL TOWER HILL MINES LTD.
(Translation of registrant's name into English)
2300 - 1177 West Hastings Street, Vancouver, BC, V6E 2K3
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
[ ] Form 20-F [ x ] Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [ x ]
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _________
SUBMITTED HEREWITH
Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
International Tower Hill Mines Ltd. | ||
(Registrant) | ||
Date: March 23, 2012 | By: | /s/ James Komadina |
James Komadina | ||
Title: | CEO |
In connection with the Company’s listing on the American Stock Exchange, LLC, the Company prepared its U.S. GAAP Balance Sheet as at August 3, 2007.
STOCK AND ASSET PURCHASE AGREEMENT
THIS AGREEMENT is made effective as of the 13th day of December, 2011.
AMONG:
TOWER HILL MINES, INC., an
Alaska corporation,
with an address of 506 Gaffney Road, Ste 200, Fairbanks,
Alaska 99701 (Tower);
AND:
ALASKA/NEVADA GOLD MINES, LTD.,
a California
limited partnership, with an address of 626 Second Street,
Suite 202, Fairbanks, Alaska 99701 (AN Gold Mines);
AND:
HEFLINGER MINING & EQUIPMENT
COMPANY,
an Alaska general partnership, with an address of P.O. Box
250, Ester, Alaska 99725 (Heflinger Mining);
AND:
CARL HEFLINGER, an individual
resident in the State
of Alaska (C. Heflinger);
AND:
FRED HEFLINGER, an individual
resident in the State of
Alaska (F. Heflinger, collectively with C.
Heflinger and
Heflinger Mining, Heflinger Group, and collectively
the
Heflinger Group together with AN Gold Mines, the
Sellers).
WHEREAS:
A. |
Heflinger Group owns those mineral claims identified on Schedule I all located in the Livengood Mining District, Fairbanks Recording District, Alaska (the Heflinger Claims); |
B. |
AN Gold Mines presently owns a lease in good standing on the Heflinger Claims, identified on Schedule II (ANGM Lease); |
C. |
AN Gold Mines is the legal and beneficial owner of 96,967.66 shares of common stock of Livengood Placers, Inc., a Nevada corporation (Livengood), comprising all of the issued and outstanding shares of common stock of Livengood (Livengood Shares); |
D. |
Livengood is the record owner of those mineral claims identified on Schedule III all located in the Livengood Mining District, Fairbanks Recording District, Alaska (Livengood Claims); |
E. |
Heflinger Group and AN Gold Mines possess certain information and data relating to the Heflinger Claims and the Livengood Claims (the Information); |
F. |
Tower wishes to purchase and AN Gold Mines wishes to sell all of the Livengood Shares and the Information possessed by AN Gold Mines in consideration for the payment of AN Gold Mines portion of the Purchase Price (as defined herein) upon and subject to the terms and conditions set forth in this Agreement; and |
G. |
Tower wishes to purchase and Heflinger Group wishes to sell the Heflinger Claims and the Information possessed by Heflinger Group in consideration for the payment of Heflinger Groups portion of the Purchase Price (as defined herein) upon and subject to the terms and conditions set forth in this Agreement. |
NOW THEREFORE THIS AGREEMENT WITNESSES that, in consideration of the mutual representations, warranties and agreements contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
ARTICLE 1 - INTERPRETATION
1.1 Defined terms
The following terms have the following meanings in this Agreement:
(a) |
Acquisition means the acquisition as a single undivided transaction on the Closing Date of the Livengood Shares, the Heflinger Claims and the Information from the Sellers by Tower and the relinquishment of the ANGM Lease by AN Gold Mines, upon and subject to the terms and conditions of this Agreement; | |
(b) |
Admitted Claim has the meaning set forth in Sections 9.1(b), 9.2(b), and 9.3(b); | |
(c) |
AN Gold Mines has the meaning set forth in the recitals hereto; | |
(d) |
ANGM Lease has the meaning set forth in the recitals hereto; | |
(e) |
Applicable Law means all applicable rules, policies, notices, orders and legislation of any kind whatsoever of any governmental authority, regulatory body or stock exchange having jurisdiction over the transactions contemplated hereby. | |
(f) |
Business Day means any day except Saturday, Sunday or a statutory holiday in Fairbanks, Alaska; |
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(g) |
Buyer has the meaning set forth in Section 9.1(a); | |
(h) |
Buyer Claim has the meaning set forth in Sections 9.1(a) and 9.2(b), as applicable; | |
(i) |
C. Heflinger has the meaning set forth in the recitals hereto; | |
(j) |
Closing means the completion of the Acquisition on the Closing Date pursuant to the terms and conditions contained in this Agreement; | |
(k) |
Closing Date means December 13, 2011, or such other date as Tower and AN Gold Mines may mutually agree in writing; | |
(l) |
Closing Payment has the meaning set forth in Section 2.2; | |
(m) |
Contingent Final Payment has the meaning set forth in Section 2.2; | |
(n) |
Contingent Payment Date has the meaning set forth in Section 2.2; | |
(o) |
Effective Date means the date of this Agreement; | |
(p) |
Encumbrance means any charge, claim, community property interest, easement, covenant, condition, equitable interest, lien, option, pledge, security interest, right of first refusal or restriction of any kind, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership; | |
(q) |
F. Heflinger has the meaning set forth in the recitals hereto; | |
(r) |
Governmental Entity means any federal, state, local, foreign, international or multinational entity or authority exercising executive, legislative, judicial, regulatory, administrative or taxing functions of or pertaining to government. | |
(s) |
Governmental Order means any judgment, injunction, writ, order, ruling, award or decree by any Governmental Entity or arbitrator. | |
(t) |
Heflinger Claims has the meaning set forth in the recitals hereto; | |
(u) |
Heflinger Group has the meaning set forth in the recitals hereto; | |
(v) |
Heflinger Mining has the meaning set forth in the recitals hereto; | |
(w) |
Information has the meaning set forth in the recitals hereto; | |
(x) |
Livengood has the meaning set forth in the recitals hereto; | |
(y) |
Livengood Claims has the meaning set forth in the recitals hereto; |
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(z) |
Livengood Shares has the meaning set forth in the recitals hereto; | |
(aa) |
Loss means all damages, fines, penalties, deficiencies, losses, liabilities (whether accrued, actual, contingent, latent or otherwise), costs, fees and expenses (including interest, court costs and reasonable fees and expenses of lawyers, accountants and other experts and professionals); | |
(bb) |
Material Adverse Effect means any change, effect, event or condition occurring or arising after the Effective Date, individually or in the aggregate, that has had, or, with the passage of time, could have, a material adverse effect on the relevant property or the business, assets, properties, or condition (financial or otherwise), of a Person, taken as a whole; | |
(cc) |
Organizational Documents means (i) the articles or certificate of incorporation and the bylaws of a corporation, (ii) the partnership agreement and any statement of partnership of a general partnership, (iii) the limited partnership agreement and the certificate of limited partnership of a limited partnership, (iv) the limited liability company agreement and articles or certificate of formation of a limited liability company, (v) any charter or similar document adopted or filed in connection with the creation, formation or organization of a Person and (vi) any amendment to any of the foregoing; | |
(dd) |
Person means a natural person, partnership, limited partnership, limited liability partnership, corporation, limited liability corporation, unlimited liability company, trust, unincorporated association, joint venture or other entity or Governmental Entity and pronouns have a similarly extended meaning; | |
(ee) |
Purchase Price has the meaning set forth in Section 2.2; | |
(ff) |
Remedies Exception when used with respect to any Person, means except to the extent enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors rights generally and by general equitable principles; | |
(gg) |
Sellers has the meaning set forth in the recitals hereto; | |
(hh) |
Sellers Claim has the meaning set forth in Section 9.3(a); | |
(ii) |
Tower has the meaning set forth in the recitals hereto; and | |
(jj) |
Time of Closing means 10 a.m. (Alaska Time) on the Closing Date. |
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1.2 Schedules
The following schedules attached hereto constitute a part of this Agreement:
1.3 Headings
The headings in this Agreement are for reference only and do not constitute terms of the Agreement.
1.4 Interpretation
Whenever the singular or masculine is used in this Agreement the same shall be deemed to include the plural or the feminine or the body corporate as the context may require.
1.5 Currency
Unless otherwise stated, all references to money in this Agreement shall be deemed to be references to the currency of the United States of America.
ARTICLE 2 - PURCHASE OF SHARES AND ASSETS
2.1 Agreement
At Closing, upon and subject to the terms and conditions of this Agreement:
(a) |
AN Gold Mines hereby agrees to (i) sell, convey and transfer to Tower the Livengood Shares and sell and transfer to Tower the Information possessed by AN Gold Mines, and Tower agrees to purchase the Livengood Shares and the Information possessed by AN Gold Mines; and (ii) terminate and relinquish all of its right, title and interest in, to and under the ANGM Lease, all in consideration for the payment by Tower to AN Gold Mines of 70% of the Purchase Price pursuant to the terms and conditions of Section 2.2. AN Gold Mines waives any co-sale rights, rights of first refusal or similar rights that AN Gold Mines may have relating to Towers purchase of the Livengood Shares, whether conferred by AN Gold Mines Organizational Documents, Livengoods Organizational Documents, by contractual agreement or otherwise. |
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(b) |
Heflinger hereby agrees to sell and transfer to Tower the Heflinger Claims and the Information possessed by Heflinger, and Tower agrees to purchase the Heflinger Claims and the Information possessed by Heflinger, in consideration for the payment by Tower to Heflinger Group of 30% of the Purchase Price pursuant to the terms and conditions of Section 2.2. |
2.2 Purchase Price
In consideration for the Acquisition as detailed in Section 2.1, Tower shall pay to the Sellers, respectively in accordance with the acknowledged allocations of Section 2.4, in the aggregate:
(a) |
an aggregate amount of $13,500,000.00 (Closing Payment) payable as follows: | ||
(i) |
$5,000,000 shall be paid as provided in Section 6.5(a) on the Closing Date, and | ||
(ii) |
$8,500,000 shall be paid as provided in Section 6.5(b) on March 13, 2012, and | ||
(b) |
a contingent final payment (Contingent Final Payment) determined on the date that is five years from the Closing Date (Contingent Payment Date), in an amount calculated pursuant to Section 2.3 below and, subject to Section 9.4, paid to the Sellers on the 30th day following the Contingent Payment Date (collectively the Closing Payment and the Contingent Final Payment, the Purchase Price). No interest will accrue on the Contingent Final Payment. |
The Contingent Final Payment will be secured by a deed of trust (Deed of Trust), in the form set forth in Schedule V hereto, on the Heflinger Claims and the Livengood Claims.
2.3 Contingent Final Payment
The Contingent Final Payment will be calculated based on the Five Year Average Gold Price (as defined below). The Contingent Final Payment amount shall be calculated by multiplying the number 23,148 by the positive difference, if any, between the Five Year Average Gold Price per troy ounce and $720 per troy ounce [Contingent Final Payment ($) = 23,148 x (Five Year Average Gold Price per troy ounce - $720 per troy ounce)]. The amount of the Contingent Final Payment shall be zero if the Five Year Average Gold Price is less than $720 per troy ounce.
For purposes of this Section 2.3, Five Year Average Gold Price means the average London Bullion Market Association PM fix price for gold as reported in U.S. dollars per troy ounce, calculated by dividing the sum of all such prices reported for the five (5) year period from the Closing Date, by the number of days for which such prices were reported during that five (5) year period. If the London Bullion Market Association PM fix price for gold ceases to be published, all such references in this Agreement shall be replaced with: (i) the average of the daily closing price (expressed in $ per troy ounce) quoted by the New York Mercantile Exchange (NYMEX) for gold; or (ii) in the event that daily closing price for gold is not quoted by NYMEX, the parties agree to meet (either in person or by teleconference) within 10 Business Days of either giving notice to the other to endeavour to agree on an appropriate metals or commodity exchange, or commodity pricing publication, whose pricing information on minerals and metal commodities is to be used for the purposes of determining the relevant price, failing which the Five Year Average Gold Price shall be determined by arbitration pursuant to Article 10.
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2.4 Allocation
Tower shall allocate each payment of the Purchase Price payable to the Sellers pursuant to Section 2.2 as follows:
AN Gold Mines 70% | |
Heflinger Group 30% |
Sellers each acknowledge and agree to the allocation of the Purchase Price as presented above and agree that payment of their allocated portion of the Purchase Price is satisfaction in full of Towers payment obligations under Sections 2.2 and 2.3 to such Seller. Sellers each agree that neither has any right to or interest in the portion of the Purchase Price allocated and paid to the other. C. Heflinger, F. Heflinger and Heflinger Mining agree to take payment of the allocated Purchase Price due to Heflinger Group in one designated account and acknowledge and agree that payment to Heflinger Mining is satisfaction in full of Towers obligations to C. Heflinger, F. Heflinger and Heflinger Mining hereunder.
For the sake of clarity, and notwithstanding any other provision of this Agreement, Seller and Tower hereby agree as follows:
(a) |
the representations, warranties, covenants, and obligations of each Seller made herein or to be satisfied hereunder prior to or at Closing are several and not joint, and liability for breach of any such representation, warranty, covenant, or obligation by any Seller likewise shall be solely the liability of the breaching Seller; | |
(b) |
the payment obligations of Tower under Sections 2.2 and 2.3 to each of the Sellers are several and not joint; | |
(c) |
all covenants or obligations to be satisfied by any Seller after Closing are several and not joint, and liability for breach of any such covenant or obligation by any Seller likewise shall be solely the liability of the breaching Seller; | |
(d) |
all covenants or obligations to be satisfied by Tower after Closing, other than the payment obligations of Tower under Section 2.3 to each of the Sellers and the covenants of Tower set forth in Paragraph 5 of the Deed of Trust to be executed, acknowledged, and delivered by Tower and Livengood at Closing, are for the benefit of Sellers jointly and severally and thus may be enforced by any Seller or both Sellers. |
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2.5 Release of Deed of Trust
Upon the payment of the Purchase Price in full, Sellers shall cause to be executed and delivered to Tower a recordable reconveyance and release of the Deed of Trust in a form reasonably satisfactory to Tower.
ARTICLE 3 - COVENANTS AND AGREEMENTS
3.1 Given by AN Gold Mines
AN Gold Mines covenants and agrees with Tower as follows:
(a) |
from and including the Effective Date to and including the Time of Closing, AN Gold Mines will preserve and protect the Livengood Claims; | |
(b) |
AN Gold Mines will use reasonable commercial efforts to obtain all consents, approvals, permits, authorizations or filings as may be required under Applicable Law and the Organizational Documents of AN Gold Mines and Livengood for the performance by AN Gold Mines of its obligations under this Agreement; | |
(c) |
from and including the Effective Date to and including the Time of Closing, AN Gold Mines will cause Livengood to carry on the business of Livengood in a reasonable and prudent manner in the usual and ordinary course, consistent with past practice, and as otherwise contemplated by this Agreement; | |
(d) |
from and including the Effective Date to and including the Time of Closing, except as set out in this Agreement, AN Gold Mines will cause Livengood to not issue or transfer any securities of Livengood, nor enter into any agreement or understanding with any other party with respect to same, without the prior written consent of Tower; | |
(e) |
from and including the Effective Date to and including the Time of Closing, AN Gold Mines and its directors, officers, employees, shareholders, agents and advisors will not directly or indirectly, solicit, initiate, assist, facilitate, promote or knowingly encourage the initiation of proposals or offers from, entertain or enter into negotiations with, any person (other than Tower), with respect to any amalgamation, merger, consolidation, arrangement, restructuring, sale of any material assets or part thereof of Livengood, without the prior written consent of Tower; |
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(f) |
AN Gold Mines will promptly advise Tower of any Material Adverse Effect in respect of Livengood or the Livengood Claims; | |
(g) |
AN Gold Mines will do all such acts and things reasonably necessary to ensure that all of the representations and warranties of AN Gold Mines remain true and correct at the Time of Closing and not do any such act or thing that would render any representation or warranty untrue or incorrect; | |
(h) |
AN Gold Mines will comply with the terms hereof and faithfully and expeditiously seek to satisfy the conditions precedent set out in this Agreement and to close the Acquisition and related transactions by the Closing Date; and | |
(i) |
from and including the Effective Date to and including the Time of Closing, AN Gold Mines will comply in all respects with the foregoing covenants and the spirit and intent of this Agreement. |
3.2 Given by Heflinger Group
Each of the Heflinger Group covenants and agrees with Tower as follows:
(a) |
from and including the Effective Date to and including the Time of Closing, Heflinger Group will preserve and protect the Heflinger Claims; | |
(b) |
Heflinger Group will use reasonable commercial efforts to obtain all consents, approvals, permits, authorizations or filings as may be required under Applicable Law and the Organizational Documents of Heflinger Mining for the performance by Heflinger Group of their obligations under this Agreement; | |
(c) |
from and including the Effective Date to and including the Time of Closing, Heflinger Group will not directly or indirectly, solicit, initiate, assist, facilitate, promote or knowingly encourage the initiation of proposals or offers from, entertain or enter into negotiations with, any person (other than Tower), with respect to any sale of the Heflinger Claims, without the prior written consent of Tower; | |
(d) |
Heflinger Group will promptly advise Tower of any Material Adverse Effect with respect to the Heflinger Claims; | |
(e) |
Heflinger Group will do all such acts and things reasonably necessary to ensure that all of the representations and warranties of Heflinger remain true and correct at the Time of Closing and not do any such act or thing that would render any representation or warranty untrue or incorrect; | |
(f) |
Heflinger Group will comply with the terms hereof and faithfully and expeditiously seek to satisfy the conditions precedent set out in this Agreement and to close the Acquisition and related transactions by the Closing Date; and |
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(g) |
from and including the Effective Date to and including the Time of Closing, Heflinger Group will comply in all respects with the foregoing covenants and the spirit and intent of this Agreement. |
3.3 Given by Tower
Tower covenants and agrees with Sellers that Tower will:
(a) |
use its reasonable commercial efforts to obtain all consents, approvals, permits, authorizations or filings as may be required under Applicable Law and the Organizational Documents of Tower for the performance by Tower of its obligations under this Agreement; | |
(b) |
from and including the Effective Date to and including the Time of Closing, do all such acts and things necessary to ensure that all of the representations and warranties of Tower remain true and correct and not do any such act or thing that would render any representation or warranty of Tower untrue or incorrect; | |
(c) |
comply with the terms hereof and faithfully and expeditiously seek to satisfy the conditions precedent set out in this Agreement and to close the Acquisition and related transactions by the Closing Date; and | |
(d) |
from and including the Effective Date to and including the Time of Closing, comply in all respects with the foregoing covenants and the spirit and intent of this Agreement. |
ARTICLE 4 - CONDITIONS PRECEDENT
4.1 In favor of all parties
The obligations of all parties under this Agreement are subject to the fulfillment of the following conditions at or prior to the Time of Closing:
(a) |
and all consents, orders and approvals required or necessary or desirable for the completion of the Acquisition shall have been obtained or received from the Persons, authorities or bodies having jurisdiction in the circumstances, all on terms satisfactory to all of the parties hereto, acting reasonably; and | |
(b) |
there shall not be in force any order or decree restraining or enjoining the consummation of the transactions contemplated by this Agreement, including, without limitation, the Acquisition. |
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4.2 In favor of Tower
Towers obligations under this Agreement are subject to the fulfillment of the following conditions at or prior to the Time of Closing;
(a) |
Livengood not having more than 96,967.66 Livengood Shares issued and outstanding, Livengood not having any other securities in its capital issued and outstanding, and AN Gold Mines being the sole legal and beneficial holder of all of the Livengood Shares on the Closing Date; | |
(b) |
no Material Adverse Effect will have occurred in relation to Livengood, the Livengood Claims or the Heflinger Claims; | |
(c) |
Tower will have received certificates dated as of a date not earlier than the fifth business day prior to the Closing as to the good standing of Livengood executed by the appropriate officials of the State of Nevada and Alaska; | |
(d) |
all documents deliverable at Closing pursuant to Sections 6.2 and 6.3 shall have been delivered at the Closing; | |
(e) |
the partners of AN Gold Mines and Heflinger Mining, respectively, will have given all necessary approvals for the entry into of this Agreement and all transactions contemplated hereby to be completed by AN Gold Mines and Heflinger Mining, respectively; | |
(f) |
the representations and warranties of AN Gold Mines and Heflinger Group or any one of them shall be true and correct, in all material respects (and for this purpose all materiality qualifications in such representations and warranties will be disregarded), as if such representations and warranties had been made by AN Gold Mines and Heflinger Group as of the Time of Closing; and | |
(g) |
AN Gold Mines and Heflinger Group shall have complied, in all material respects, with all of their respective covenants and agreements contained in this Agreement. |
The conditions precedent set forth above are for the exclusive benefit of Tower and may be waived by it in whole or in part on or before the Time of Closing.
4.3 In favor of AN Gold Mines and Heflinger Group
The obligations of AN Gold Mines and Heflinger Group under this Agreement are subject to the fulfillment of the following conditions:
(a) |
the board of directors of Tower will have given all necessary approvals for the entry into of this Agreement and all transactions contemplated hereby to be completed by Tower; |
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(b) |
the representations and warranties of Tower shall be true and correct, in all material respects, as if such representations and warranties had been made by Tower as of the Time of Closing; and | |
(c) |
Tower shall have complied, in all material respects, with all of its covenants and agreements contained in this Agreement. |
The conditions precedent set forth above are for the exclusive benefit of AN Gold Mines and Heflinger Group and must be waived by both AN Gold Mines and Heflinger Group, in whole or in part on or before the Time of Closing.
ARTICLE 5 - REPRESENTATIONS AND WARRANTIES
5.1 Representations and Warranties Concerning Tower
Tower represents and warrants to AN Gold Mines and the Heflinger Group as of the date hereof and as of the Closing Date as follows:
(a) |
Formation and Corporate Power Tower is a corporation existing under the laws of the State of Alaska. Tower has the corporate power and authority to enter into and deliver this Agreement and the Deed of Trust and to carry out its obligations under the Agreement and the Deed of Trust on the terms and conditions set forth herein and therein. | |
(b) |
Valid and Binding Agreement The execution, delivery and performance of this Agreement by Tower has been duly and validly authorized by all necessary corporate action. This Agreement has been duly executed and delivered by Tower and constitutes the valid and binding obligation of Tower, enforceable in accordance with its terms, subject to the Remedies Exception. | |
(c) |
No Conflict The execution, delivery and performance of this Agreement does not conflict with or result in the violation of any valid regulation, order, writ, judgment, injunction or decree of any court of governmental or municipal instrumentality, or in the breach of or default under any indenture, contract, agreement, or other instrument to which Tower is a party, or by which Tower may be bound. |
5.2 Representations and Warranties Concerning Heflinger Group
Each of the Heflinger Group represents and warrants to Tower as of the date hereof and as of the Closing Date as follows:
(a) |
Formation and Entity Power Heflinger Mining is an Alaskan general partnership, duly formed and in good standing under the laws of the State of Alaska. Heflinger Mining is qualified to do business in the State of Alaska and has full power and authority to enter into and perform this Agreement. The person executing this Agreement for and on behalf of Heflinger Mining is duly authorized to do so. |
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(b) |
Valid and Binding Agreement This Agreement constitutes the legal, valid and binding obligation of each of the members of the Heflinger Group, enforceable in accordance with its terms, subject to the Remedies Exception. | |
(c) |
No Conflict The execution, delivery and performance of this Agreement does not conflict with or result in the violation of any valid regulation, order, writ, judgment, injunction or decree of any court of governmental or municipal instrumentality, or in the breach of or default under the Heflinger Mines Organizational Documents any indenture, contract, agreement, or other instrument to which any of the Heflinger Group is a party, or by which any of the Heflinger Group may be bound. | |
(d) |
Claims Subject to the paramount title of the United States of America, that Heflinger Group has exclusive possession of the Heflinger Claims, subject only to the ANGM Lease, and that the Heflinger Claims are free and clear of all liens and encumbrances arising by, through, or under Heflinger Group. | |
(e) |
Property and Severance Taxes All lawful taxes, assessments, or other charges of every kind and character assessed, levied, or imposed on or in connection with the Heflinger Claims or the exploration, development, or mining thereof or the production of valuable minerals therefrom, including without limitation any applicable federal or state income taxes or severance taxes that are due and payable have been paid and are in good standing. | |
(f) |
Capacity Each of C. Heflinger and F. Heflinger has full capacity and power to execute, deliver, and carry out the terms and provisions of this Agreement and their respective ownership of the Heflinger Claims, as applicable, is not subject to any marital property rights under applicable state marital property laws. | |
(g) |
As Is Sale Except as specifically set forth in this Section 5.2, Heflinger Group makes no other express or implied representations or warranties of any nature whatsoever to Tower. |
5.3 Representations and Warranties Concerning AN Gold Mines
AN Gold Mines represents and warrants to Tower as of the date hereof and as of the Closing Date as follows:
(a) |
Formation and Entity Power AN Gold Mines is a California limited partnership, duly formed and in good standing with the laws of the State of California. AN Gold Mines is qualified to do business in the State of Alaska. AN Gold Mines has full power and authority to enter into and perform this Agreement. The person executing this Agreement for and on behalf of AN Gold Mines is duly authorized to do so. |
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(b) |
Valid and Binding Agreement This Agreement constitutes the legal, valid and binding obligation of AN Gold Mines, enforceable in accordance with its terms, subject to the Remedies Exception. | |
(c) |
No Conflict The execution, delivery and performance of this Agreement does not conflict with or result in the violation of any valid regulation, order, writ, judgment, injunction or decree of any court of governmental or municipal instrumentality, or in the breach of or default under the AN Gold Mines Organizational Documents or any indenture, contract, agreement, or other instrument to which AN Gold Mines is a party, or by which AN Gold Mines may be bound. | |
(d) |
Organization of Livengood Livengood is a private corporation duly organized, validly existing and in good standing under the laws of the State of Nevada. Livengood is qualified to do business in Alaska. A true and correct copy of Livengoods Certificate of Incorporation and its Bylaws as now in effect, has been delivered by AN Gold Mines to Tower. Livengoods minute books have been available to Tower for inspection and are materially complete and correct as of the date of any such inspection and will be as at the Closing Date. | |
(e) |
Livengood Shares The authorized capital stock of Livengood consists of 100,000 shares of common stock, of which 96,967.66 shares of common stock are duly issued and outstanding. | |
(f) |
No Restrictions Neither Livengood nor AN Gold Mines is a party to any agreement, written or oral, creating rights in respect to the Livengood Shares in any third person or relating to the voting, transfer or Encumbrance of the Livengood Shares. | |
(g) |
Ownership AN Gold Mines is the beneficial and registered owner of all 96,967.66 shares of Livengoods outstanding common stock, free and clear of all Encumbrances. | |
(h) |
Other Securities There are no existing warrants, options, stock purchase agreements, redemption agreements, restrictions of any nature, calls or rights to subscribe, of any character relating to the capital stock of Livengood, nor are there any securities convertible into such stock. | |
(i) |
Claims Subject only to the paramount title of the United States of America or the State of Alaska, as the case may be, Livengood has exclusive possession of the Livengood Claims and such Livengood Claims are free and clear of all liens and encumbrances arising by, through, or under Livengood at any time after AN Gold Mines became the sole shareholder of Livengood. |
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(j) |
Livengood Financial Statements The financial statements of Livengood provided to Tower have been prepared in accordance with generally accepted United States accounting principles applied on a consistent basis, and truly and accurately reflect the financial position of Livengood as of the last days of the periods covered by them, and the Livengood balance sheet (the Balance Sheet) attached as Schedule VI shall be provided to Tower at the Closing and shall in all material respects correctly reflect the financial status of Livengood as of the Closing Date. | |
(k) |
Livengood Tax Matters Livengood has timely prepared and filed all federal and state tax returns required to be filed and all such returns are substantially true, complete and correct, and all taxes due have been paid in full. The Livengood 2011 federal and state tax liability accrued year to date is shown on the Balance Sheet along with the cash required to pay said taxes due. | |
(l) |
Liabilities and Litigation Livengood is not indebted or under any financial obligation to any person and is not a party to any litigation, proceeding or administrative investigation and to the best knowledge of AN Gold Mines, none is pending against Livengood or its properties. | |
(m) |
Property and Severance Taxes All lawful taxes, assessments, or other charges of every kind and character assessed, levied, or imposed on or in connection with the Livengood Claims or the exploration, development, or mining thereof or the production of valuable minerals therefrom, including without limitation any applicable federal or state income taxes or severance taxes that are due and payable have been paid and are in good standing. | |
(n) |
As Is Sale Except as specifically set forth in this Section 5.3, AN Gold Mines makes no express or implied representations or warranties of any nature whatsoever to Tower. |
5.4 Survival of Representations and Warranties
The representations and warranties made by the parties under this Article 5 are true and correct as of the Effective Date and shall be true and correct at the Time of Closing as though they were made at that time, and should such not be the case, the parties to whom the representations and warranties were made shall be entitledduring the period commencing on the Closing Date and ending on (i) the passage of three years after Tower knows or has reason to know of the misrepresentation or breach of warranty or (ii) the fifth anniversary of the Closing Date, whichever occurs firstto seek remedy against that party for any such misrepresentation or breach of warranty.
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5.5 No limit on rights
The parties jointly and severally acknowledge and agree, each with the other, that a partys investigations shall in no way limit or otherwise adversely affect that partys rights under the representations and warranties given to it by any other party under this Agreement.
ARTICLE 6 - CLOSING
6.1 Closing Date
The Closing shall take place at the Time of Closing at the offices of Yukon Title Company, Inc. or at such other time, date or place upon which the parties may mutually agree.
6.2 Deliveries by AN Gold Mines
At the Closing, AN Gold Mines shall deliver to Tower the following documents:
(a) |
a certified true copy of the resolutions of the directors of Livengood evidencing that the board of directors has taken all necessary action to authorize and execute all of the transactions of Livengood contemplated hereunder and the resolutions shall include specific reference to: | ||
(i) |
the sale and transfer of the Livengood Shares from AN Gold Mines to Tower as provided for in this Agreement; | ||
(ii) |
the cancellation of the certificates (the Old Certificates) representing the Livengood Shares held by AN Gold Mines; and | ||
(iii) |
the issuance of a new certificate (the New Certificate) representing the Livengood Shares registered as directed by Tower; | ||
(b) |
a certified true copy of the resolutions of the General Partner of AN Gold Mines evidencing that the General Partner of AN Gold Mines has approved this Agreement and the completion of all of the transactions of AN Gold Mines contemplated hereunder; | ||
(c) |
certificates dated as of a date not earlier than the fifth business day prior to the Closing as to the good standing of Livengood executed by the appropriate officials of the State of Nevada and Alaska; | ||
(d) |
the Old Certificates free and clear of all Encumbrances, duly endorsed or accompanied by duly executed stock powers; | ||
(e) |
the New Certificate; |
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(f) |
a certified copy of the register of shareholders of Livengood showing Tower as the holder of all issued and outstanding shares in the capital of Livengood; | |
(g) |
a certified copy of the certificate of incorporation and bylaws of Livengood; | |
(h) |
a certificate signed by an authorized representative of AN Gold Mines that the representations and warranties of AN Gold Mines contained in this Agreement are true and correct as of the Time of Closing on the Closing Date; | |
(i) |
the corporate minute book, legal files as maintained by Livengood and by its lawyers, checkbook, accounting and banking records, and accounts maintained with banks or like financial institutions by Livengood, together with the names and designations of officers authorized to draw thereon or have access thereto, all geological information (including all geologic maps, charts and analyses, geology and engineering reports, prior exploration and development results, proposed work programs and budgets, pre-feasibility or feasibility studies and reports, valuations, resource and reserve estimates, and the like), and all other records and files of Livengood, including without limitation all correspondence with governmental and regulatory authorities in respect of the Livengood Claims or any assets of Livengood, all in electronic as well as paper format where available, provided that AN Gold Mines shall be entitled to keep copies of such records as it may reasonably require for tax purposes or other reasonable business related purposes; and further provided Tower will provide AN Gold Mines reasonable access to such records for such purposes after Closing; | |
(j) |
resignations in writing (effective as of the Closing Date) from such of the officers and directors of Livengood as requested by Tower prior to the Closing Date in each case acknowledging the fact that Livengood is not indebted to or under any obligation to the person resigning; | |
(k) |
the Information possessed by AN Gold Mines or arrange for the delivery of such Information post-Closing to the reasonable satisfaction of Tower; | |
(l) |
the Balance Sheet as of the Closing Date in the form attached as Schedule VI; | |
(m) |
an executed termination and relinquishment in the form attached hereto as Schedule VII to effect the termination and relinquishment of the ANGM Lease to Heflinger Mining; | |
(n) |
the FIRPTA Certificate attached as Schedule VIII hereto; and |
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(o) |
such other customary closing documents (excluding opinions of counsel on any matter) giving effect to the transaction contemplated herein as are typical for similar transactions or as may be required by Tower, acting reasonably, all in form satisfactory to Tower, acting reasonably. |
6.3 Deliveries by Heflinger Group
At the Closing, Heflinger Group shall deliver to Tower the following documents:
(a) |
Heflinger Group shall execute and deliver a Quitclaim Deed in favor of Tower in the form attached hereto as Schedule IV to effect the transfer of the Heflinger Claims to Tower; | |
(b) |
a certified copy of evidence of authority by Heflinger Mining approving the execution and delivery of this Agreement and the sale of the Heflinger Claims to Tower; | |
(c) |
the Information possessed by Heflinger or arrange for the delivery of such Information post-Closing to the reasonable satisfaction of Tower; | |
(d) |
a written acknowledgement and acceptance of the termination and relinquishment by AN Gold Mines of the ANGM Lease to Heflinger Mining; | |
(e) |
the FIRPTA Certificate attached as Schedule VIII hereto; and | |
(f) |
such other customary closing documents (excluding opinions of counsel on any matter) giving effect to the transaction contemplated herein as are typical for similar transactions or as may be required by Tower, acting reasonably, all in form satisfactory to Tower, acting reasonably. |
6.4 Deliveries by Sellers
At the Closing, Sellers shall deliver to Tower any written consents of third parties that are required to complete the Acquisition.
6.5 Deliveries by Tower
(a) |
At the Time of Closing on the Closing Date, Tower shall deliver the following: | ||
(i) |
(1) to AN Gold Mines the portion of the first $5,000,000 of the Closing Payment to which it is entitledi.e., 70% of $5,000,000, or $3,500,000by wire transfer to the account designated by AN Gold Mines, and | ||
(2) to Heflinger Group the portion of the first $5,000,000 of the Closing Payment to which it is entitledi.e., 30% of $5,000,000, or $1,500,000by wire transfer to the account designated by Heflinger Group, |
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(ii) |
to AN Gold Mines, for recording, a Deed of Trust executed and acknowledged by the Trustors (as defined in the Deed of Trust), | |
(iii) |
to AN Gold Mines certified true copies of the resolutions of the directors of Tower evidencing the approval of this Agreement and all of the transactions of Tower contemplated hereunder, | |
(iv) |
to AN Gold Mines a certificate signed by an officer of Tower confirming that the representations and warranties of Tower contained in this Agreement are true and correct as of the Time of Closing, and | |
(v) |
to AN Gold Mines such other customary closing documents (excluding opinions of counsel on any matter) giving effect to the transaction contemplated herein as are typical for similar transactions or as may be required by AN Gold Mines, acting reasonably, all in form satisfactory to AN Gold Mines, acting reasonably; and |
(b) |
Subject to completion of the Closing on the Closing Date and Section 7.2, Tower shall deliver to Sellers by wire transfer on March 13, 2012, as set forth in subparagraphs (i) and (ii) below, the portion of the Closing Payment not paid on the Closing Date (i.e., the sum of $8,500,000), unless Tower notifies Sellers prior to 5:00 p.m. (Alaska Time) on March 12, 2012, that it is rescinding this Agreement pursuant to Section 7.2 of this Agreement, in which case no amount shall be payable by Tower pursuant to this Section 6.5(b) or for purposes of Section 2.2(a)(ii): | ||
(i) |
70% of said $8,500,000 (i.e., $5,950,000) shall be disbursed to AN Gold Mines by wire transfer to the account designated by AN Gold Mines, and | ||
(ii) |
30% of said $8,500,000 (i.e., $2,550,000) shall be disbursed to Heflinger Group by wire transfer to the account designated by Heflinger Group. |
ARTICLE 7 TERMINATION AND RESCISSION
7.1 Termination
This Agreement may be terminated:
(a) |
by mutual written consent of the parties hereto; |
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(b) |
by Tower prior to the Closing Date if (i) any Seller has or will have breached any representation, warranty or agreement contained in this Agreement, (ii) an Applicable Law or Governmental Order will have been enacted, entered, enforced, promulgated, issued or deemed applicable to the transactions contemplated by this Agreement by any Governmental Entity that prohibits the Closing, (iii) after the Effective Date a Material Adverse Effect will have occurred with respect to Livengood, the Livengood Claims or the Heflinger Claims, or (iv) any of the conditions in Section 4.2 shall have become impossible to satisfy; | |
(c) |
by Sellers prior to the Closing Date if (i) Tower has or will have breached any representation, warranty or agreement contained in this Agreement, (ii) an Applicable Law or Governmental Order will have been enacted, entered, enforced, promulgated, issued or deemed applicable to the transactions contemplated by this Agreement by any Governmental Entity that prohibits the Closing, or (iii) any of the conditions in Section 4.3 shall have become impossible to satisfy; | |
(d) |
by either Tower or the Sellers prior to the Closing Date in the event the other partys conditions precedent or the mutual conditions precedent are not satisfied or waived on or before 5:00 p.m. (Alaska Time) on the last business day prior to the Closing Date. |
7.2 Rescission
If, at any time prior to 5:00 p.m. Alaska Time on March 12, 2012, Tower concludes that any of the representations or warranties made by Sellers or either of them under Article 5 are not true and correct as of the Time of Closing, then Tower may elect to rescind this Agreement by delivering a notice to that effect to Sellers prior to 5:00 p.m. Alaska Time on March 12, 2012, instead of seeking damages under Section 5.4, whereupon the parties shall become obligated to refund, reconvey, return, and otherwise act so as to restore each party to its respective position immediately prior to the Effective Date.
7.3 Survival
In the event this Agreement is terminated or rescinded, the provisions of Article 8, Article 9 and Article 10 shall survive the termination or rescission.
ARTICLE 8 - CONFIDENTIALITY
8.1 Restrictions on Disclosure
The parties or the parent company of a party, may issue a news release disclosing this Agreement and the subject matter hereof after first providing the other party with a reasonable opportunity to review and comment thereon prior to the issuance thereof.
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8.2 Confidentiality
The Sellers acknowledge and agree that following the Closing Date the Information shall by the sole property of Tower and may not be used or disclosed by the Sellers to any Person for any purpose, expect as may be required by Applicable Law, and that Tower may use the Information and disclose the Information and this Agreement to any party for any purpose, as determined in the sole discretion of Tower; provided, however, that upon any foreclosure and sale pursuant to the Deed of Trust, or upon the delivery of any deed in lieu of foreclosure, all restrictions upon Sellers under this Section 8.2, and all rights of Tower under this Section 8.2, to use or disclose the Information shall cease.
ARTICLE 9 - INDEMNIFICATION
9.1 Indemnification by AN Gold Mines
(a) |
AN Gold Mines will indemnify in full Tower and Livengood (collectively, for purposes of this Article 9 only, Buyer) and hold it harmless against any Loss arising from, relating to or constituting (i) any breach or inaccuracy in any of the representations and warranties of AN Gold Mines contained in this Agreement or in the Schedules hereto as the same may be brought down to the Closing Date or any closing certificate delivered by or on behalf of AN Gold Mines pursuant to this Agreement, (ii) a breach of any agreements of AN Gold Mines contained herein, (iii) any claims brought by any or all of the limited partners of AN Gold Mines against Tower relating to the sale of the Livengood Shares to Tower; (iv) any liability of Livengood for taxes incurred on or prior to the Closing Date, (v) a Loss arising as a result of a breach by AN Gold Mines or its directors, officers, employees, shareholders, agents or advisors of Sections 12.2 or 12.3 of this Agreement, or (vi) a Loss related to or arising from AN Gold Mines activities in removing from the Livengood Claims all equipment owned by AN Gold Mines and AN Gold Mines contractor Alaska Placer Development, Inc., pursuant to the liabilities assumed by AN Gold Mines in Section 12.6; | |
(b) |
If Buyer has a claim for indemnification under this Section 9.1, Buyer will deliver to AN Gold Mines one or more written notices of Buyer Losses (each a Buyer Claim). Any Buyer Claim will state in reasonable detail the basis for such Buyer Losses to the extent then known by Buyer and the nature of the Buyer Loss for which indemnification is sought, and it may state the amount of the Buyer Loss claimed. If such Buyer Claim (or an amended Buyer Claim) states the amount of the Buyer Loss claimed and AN Gold Mines notifies Buyer that AN Gold Mines does not dispute the claim described in such notice or fails to notify Buyer within 20 business days after delivery of such notice by Buyer whether AN Gold Mines disputes the claim described in such notice, the Buyer Loss in the amount specified in Buyers notice will be admitted by Sellers (an Admitted Claim), and AN Gold Mines will pay the amount of such Buyer Loss to Buyer. If AN Gold Mines has timely disputed the liability of AN Gold Mines with respect to a Buyer Claim (or an amended Buyer Claim) stating the amount of a Buyer Loss claimed, AN Gold Mines and Buyer will proceed in good faith to negotiate a resolution of such dispute. If a claim for indemnification has not been resolved or efforts to resolve undertaken within 30 days after delivery of the AN Gold Mines notice, Buyer agrees to submit the issue to arbitration pursuant to Article 10 hereof. If a Buyer Claim does not state the amount of the Buyer Loss claimed, such omission will not preclude Buyer from recovering from AN Gold Mines the amount of the Buyer Loss described in such Buyer Claim if any such amount is subsequently provided in an amended Buyer Claim. In order to assert its right to indemnification under this Article 9, Buyer will not be required to provide any notice except as provided in this Section 9.1. |
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(c) |
AN Gold Mines will pay the amount of any Buyer Loss to Buyer within 10 days following the determination of AN Gold Mines liability for and the amount of a Buyer Loss (whether such determination is made pursuant to the procedures set forth in this Section 9.1, by agreement between Buyer and AN Gold Mines, by arbitration award or by final adjudication). |
9.2 Indemnification by Heflinger Group
(a) |
Heflinger Group will indemnify in full Buyer and hold it harmless against any Loss arising from, relating to or constituting (i) any breach or inaccuracy in any of the representations and warranties of Heflinger Group contained in this Agreement or in the Schedules hereto as the same may be brought down to the Closing Date or any closing certificate delivered by or on behalf of Heflinger Group pursuant to this Agreement, (ii) an breach of any agreements of Heflinger Group contained herein, (iii) a Loss arising as a result of a breach by any of the Heflinger Group or their directors, officers, employees, shareholders, agents or advisors of Sections 12.2 or 12.3 of this Agreement or (iv) a Loss related to or arising from Heflinger Groups continuing placer mining activities pursuant to the liabilities assumed by each of the Heflinger Group in Section 12.5; | |
(b) |
If Buyer has a claim for indemnification under this Section 9.2, Buyer will deliver to Heflinger Group one or more written notices of Buyer Losses (each a Buyer Claim). Any Buyer Claim will state in reasonable detail the basis for such Buyer Losses to the extent then known by Buyer and the nature of the Buyer Loss for which indemnification is sought, and it may state the amount of the Buyer Loss claimed. If such Buyer Claim (or an amended Buyer Claim) states the amount of the Buyer Loss claimed and Heflinger Group notifies Buyer that Heflinger Group does not dispute the claim described in such notice or fails to notify Buyer within 20 business days after delivery of such notice by Buyer whether Heflinger Group disputes the claim described in such notice, the Buyer Loss in the amount specified in Buyers notice will be admitted by Sellers (an Admitted Claim), and Heflinger Group will pay the amount of such Buyer Loss to Buyer. If Heflinger Group has timely disputed the liability of Heflinger Group with respect to a Buyer Claim (or an amended Buyer Claim) stating the amount of a Buyer Loss claimed, Heflinger Group and Buyer will proceed in good faith to negotiate a resolution of such dispute. If a claim for indemnification has not been resolved or efforts to resolve undertaken within 30 days after delivery of the Heflinger Group notice, Buyer agrees to submit the issue to arbitration pursuant to Article 10 hereof. If a Buyer Claim does not state the amount of the Buyer Loss claimed, such omission will not preclude Buyer from recovering from Heflinger Group the amount of the Buyer Loss described in such Buyer Claim if any such amount is subsequently provided in an amended Buyer Claim. In order to assert its right to indemnification under this Article 9, Buyer will not be required to provide any notice except as provided in this Section 9.2. |
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(c) |
Heflinger Group will be jointly and severalty obligated to pay the amount of any Buyer Loss to Buyer within 10 days following the determination of Heflinger Groups liability for and the amount of a Buyer Loss (whether such determination is made pursuant to the procedures set forth in this Section 9.2, by agreement between Buyer and Heflinger Group, by arbitration award or by final adjudication). |
9.3 Indemnification by Tower
(a) |
Tower will indemnify in full Sellers and hold them harmless against any Loss arising from, relating to or constituting (i) any breach or inaccuracy in any of the representations and warranties of Tower contained in this Agreement or in the Schedules hereto as the same may be brought down to the Closing Date or any closing certificate delivered by or on behalf of Tower pursuant to this Agreement, or (ii) any breach of any agreements of Tower contained herein; | |
(b) |
If Sellers have a claim for indemnification under this Section 9.3, Sellers will deliver to Tower one or more written notices of Seller Losses (each a Sellers Claim). Any Sellers Claim will state in reasonable detail the basis for such Sellers Losses to the extent then known by Sellers and the nature of the Sellers Loss for which indemnification is sought, and it may state the amount of the Sellers Loss claimed. If such Sellers Claim (or an amended Sellers Claim) states the amount of the Sellers Loss claimed and Tower notifies Sellers that Tower does not dispute the claim described in such notice or fails to notify Sellers within 20 business days after delivery of such notice by Seller whether Tower disputes the claim described in such notice, the Sellers Loss in the amount specified in Sellers notice will be admitted by Sellers (an Admitted Claim), and Tower will pay the amount of such Sellers Loss to Sellers. If Tower has timely disputed the liability of Tower with respect to a Sellers Claim (or an amended Seller Claim) stating the amount of a Seller Loss claimed, Tower and Sellers will proceed in good faith to negotiate a resolution of such dispute. If a claim for indemnification has not been resolved or efforts to resolve undertaken within 30 days after delivery of the Tower notice, Sellers agree to submit the issue to arbitration pursuant to Article 10 hereof. If a Sellers Claim does not state the amount of the Sellers Loss claimed, such omission will not preclude Seller from recovering from Tower the amount of the Sellers Loss described in such Sellers Claim if any such amount is subsequently provided in an amended Sellers Claim. In order to assert its right to indemnification under this Article 9, Sellers will not be required to provide any notice except as provided in this Section 9.3. |
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(c) |
Tower will pay the amount of any Sellers Loss to Sellers within 10 days following the determination of Tower liability for and the amount of a Sellers Loss (whether such determination is made pursuant to the procedures set forth in this Section 9.3, by agreement between Sellers and Tower, by arbitration award or by final adjudication). |
9.4 Set-Off
(a) |
In the event of a breach by a Seller (the Breaching Seller) of any of the provisions of Article 12 which results in a Loss sustained by Tower or Livengood, Tower shall, in addition to any other rights or remedies available to it (including, its indemnity rights under this Article 9), have the right to set-off against the amount of the Contingent Final Payment owing to such Breaching Seller, the amounts of such Loss. For greater certainty, Tower shall not be entitled to set-off, or otherwise assert a claim in respect of, any Loss caused by a Breaching Seller against another Seller (an Innocent Seller) that has not breached the same provision or provisions of Article 12. | |
(b) |
If Tower wishes to assert its right to set-off against a Breaching Seller pursuant to this Section 9.4, Tower shall in the notice of the Buyer Claim to be provided to the Sellers, also give notice to the Sellers of its claim for set-off (the Notice of Set-Off). During the 30-day period following the giving of the notice of the Buyer Claim (or any mutually agreed-upon extension thereof), the Breaching Seller shall have the opportunity to remedy the breach giving rise to the Buyer Claim or otherwise deal with the Buyer Claim to the satisfaction of Tower, failing which Tower shall be entitled to exercise the set-off referred to in the Notice of Set-off and such amount set-off shall, for purposes of the Purchase Price, be deemed to have been paid by Tower to the Breaching Seller. For greater certainty, notwithstanding any such Buyer Claim against the Breaching Seller, Tower shall remain obliged to make payment in full of the amount of the Contingent Final Payment owing to the Innocent Seller. |
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9.5 Construction
Nothing in this Article 9 shall be deemed to supersede the time periods established for rescission under Section 7.2 or for asserting claims for breach under Section 5.4.
ARTICLE 10 - ARBITRATION
10.1 All disputes between the parties arising out of or related to this Agreement, or the performance thereof, shall be submitted to an arbiter mutually agreed upon by the parties. In such event that the parties cannot agree on an arbiter (within seven (7) days after notice of intent to arbitrate as provided in Article 9), then the arbiter shall be appointed by the American Arbitration Association. The arbiter shall be an attorney, licensed in the State of Alaska, with substantial experience in Mining and Property Law.
10.2 The decision rendered by the arbiter, including the award of costs and attorneys fees, shall be final, conclusive, and binding upon the parties.
10.3 Notice of one partys intent to submit a dispute to the arbiter shall be given, in writing, to the other party thirty (30) days prior to submission of a dispute to the arbiter. If a dispute between the parties remains unresolved after the thirty (30) day notice period, the dispute shall be submitted to the arbiter within ten (10) days thereafter and notice of such submission shall be filed with the other party to this Agreement by the submitting party.
10.4 Disputes shall be resolved in accordance with the Arbitration Rules of the American Arbitration Association, or such rules as may otherwise be mutually agreed upon in writing by the parties and the arbiter.
ARTICLE 11 - GENERAL
11.1 Time
Time is of the essence of this Agreement.
11.2 Entire Agreement
This Agreement constitutes the entire Agreement among the parties hereto in respect of the matters referred to herein and there are no representations, warranties, covenants or agreements, expressed or implied, collateral hereto other than as expressly set forth or referred to herein.
11.3 Further Assurances
The parties hereto shall execute and deliver all such further documents and instruments and do all such acts and things as any party may, either before or after the Closing, reasonably require of the others in order that the full intent and meaning of this Agreement is carried out. The provisions contained in this Agreement which, by their terms, require performance by a party to this Agreement subsequent to the Closing, shall survive the Closing.
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11.4 Expenses
Each of Tower and Sellers shall pay their own costs, fees and expenses, including legal expenses, incurred in connection with the transactions contemplated herein.
11.5 Amendments
No alteration, amendment, modification or interpretation of this Agreement or any provision of this Agreement shall be valid or binding upon the parties hereto unless such alteration, amendment, modification or interpretation is in written form executed by all of the parties to this Agreement.
11.6 Notices
Any notice, request, demand, election and other communication of any kind whatsoever to be given under this Agreement shall be in writing and shall be delivered by hand, e-mail or by fax to the parties at their following respective addresses:
To AN Gold Mines: | ||
AN Gold Mines Ltd. | ||
Alaska/Nevada Gold Mines, Ltd. | ||
626 Second Street, Suite 202 | ||
Fairbanks, Alaska 99701 | ||
Attention: | [Redacted Name] | |
Fax: | [Redacted Fax] | |
Email: | [Redacted Email] | |
To Heflinger Group: | ||
Heflinger Mining & Equipment Company | ||
P.O. Box 250 | ||
Ester, Alaska | 99725 | |
Attention: Fred Heflinger | ||
To Tower: | ||
Tower Hill Mines, Inc. | ||
Suite 350, 9635 Maroon Circle, | ||
Englewood, CO 80112 | ||
Attention: James J. Komadina | ||
Telephone: | 720-881-7646 | |
Email: jkomadina@ithmines.com |
or to such other addresses as may be given in writing by the parties hereto in the manner provided for in this section, and the party sending such notice should request acknowledgment of delivery and the party receiving such notice should provide such acknowledgment. Notwithstanding whether or not a request for acknowledgment has been made or replied to, whether or not delivery has occurred will be a question of fact. If a party can prove that delivery was made as provided for above, then it will constitute delivery for the purposes of this Agreement whether or not the receiving party acknowledged receipt.
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11.7 Assignment
This Agreement may not be assigned by any party hereto without the prior written consent of all of the parties hereto.
11.8 Governing Law
This Agreement shall be governed by and interpreted in accordance with the laws of the United States of America and the State of Alaska. The Parties hereby consent to the non-exclusive personal jurisdiction of the state and federal courts located in the state of Alaska in connection with any controversy related to this Agreement and waive any argument that venue in any such forum is not convenient. THE PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION AT LAW OR IN EQUITY OR IN ANY OTHER PROCEEDING BASED ON OR PERTAINING TO THIS AGREEMENT. IN NO EVENT SHALL THE PARTIES HERETO BE LIABLE TO EACH OTHER FOR ANY CONSEQUENTIAL, EXEMPLARY, PUNITIVE, REMOTE OR SPECULATIVE DAMAGES OR LOST PROFITS.
11.9 Counterparts
This Agreement may be signed by fax and in counterpart, and each copy so signed shall be deemed to be an original, and all such counterparts together shall constitute one and the same instrument.
11.10 Severability
If any one or more of the provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect in any jurisdiction, the validity, legality and enforceability of such provision or provisions will not in any way be affected or impaired thereby in any other jurisdiction and the validity, legality and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby, unless in either case as a result of such determination this Agreement would fail in its essential purpose.
11.11 Number and Gender
Unless the context of this Agreement otherwise requires, to the extent necessary so that each clause will be given the most reasonable interpretation, the singular number will include the plural and vice versa, the verb will be construed as agreeing with the word so substituted, words importing the masculine gender will include the feminine and neuter genders, words importing persons will include firms and corporations and words importing firms and corporations will include individuals.
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11.12 Enurement
This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors, permitted assigns, trustees, representatives, heirs and executors.
ARTICLE 12 - POST-CLOSING MATTERS
12.1 Control of Operations
From and after the Closing Date, Tower shall have, except as otherwise provided in Section 12.5, the sole and exclusive discretion to determine the timing and the manner of any exploration, development and mining activities on or for the benefit of the Heflinger Claims and Livengood Claims, respectively. Except as may be provided in the Deed of Trust regarding maintenance of the Heflinger Claims and the Livengood Claims, nothing in this Agreement shall require Tower to explore, develop or mine or continue operations on the Heflinger Claims or the Livengood Claims.
12.2 Permit Processes
The Sellers shall not, and shall cause any beneficiary of Sellers or persons or entities associated or affiliated with any Seller not to, object to or take an adverse position with respect to any mineral tenure application or claim, mine permitting application, mine development activity or other permit, approval, zoning or conditional use process or authorization initiated or pursued by Tower or its affiliates.
12.3 No Dispute
The Sellers shall not, and shall cause any beneficiary of any Seller or persons or entities associated or affiliated with any Seller not to, dispute or challenge, directly or indirectly, the validity or good standing of any of the Heflinger Claims and Livengood Claims and hereby agrees not to cause or aid any other person to dispute or challenge the validity or good standing of any of the Heflinger Claims and Livengood Claims.
12.4 Amendments, Relocations and Patents
From and after the Closing Date, Tower shall have the right (but not the obligation) to amend or relocate any or all of the Heflinger Claims and Livengood Claims, to locate placer claims on ground theretofore covered by lode claims and vice versa, to locate mill sites on ground theretofore covered by mining claims and vice versa, and to locate any fractions existing on the Closing Date or resulting from the location, amendment, or relocation of mining claims or mill sites. All such locations, amendments, or relocations shall be made in the name of Tower, but shall be subject to the terms and conditions of this Agreement and the Deed of Trust.
28
12.5 Heflinger Right to Mine
Heflinger Group shall be granted permission by Tower to continue placer mining activities for the sole benefit of Heflinger Group, including Heflinger Groups lessee, on MS 2447 from the Closing Date until December 31, 2014. Heflinger Group shall be responsible for all permits, costs and liabilities associated with such placer mining activities. Heflinger Group shall conduct reclamation as required by federal and state regulations and shall remove all equipment from MS 2447 prior to December 31, 2014. Heflinger Group shall conduct such mining activities in a workmanlike and efficient manner, in accordance with sound mining and other applicable industry standards and practices, in compliance with all Applicable Law. Tower and Heflinger Group shall make reasonable efforts to consult in relation to their respective activities on MS 2447 from time to time and shall endeavour to reduce or avoid conflict between their respective activities. The activities of Tower or its affiliates shall not materially interfere with such mining activities of Heflinger Group or its lessee and any material conflict between such activities of Tower or its affiliates and the mining activities of Heflinger Group or its lessee shall be resolved in favor of the mining activities of Heflinger Group or its lessee. Heflinger Group will be responsible for all costs and liabilities associated with mining activities conducted by it.
12.6 AN Gold Mines; Limited Right to Access
Tower hereby grants to AN Gold Mines access to the Livengood Claims for the sole purpose of removing equipment owned by AN Gold Mines or AN Gold Mines contractor Alaska Placer Development, Inc. and any necessary activities related to such removal from the Closing Date until December 31, 2014. AN Gold Mines will be responsible for all costs and liabilities associated with the removal of the equipment and any other activities conducted by AN Gold Mines in connection with such removal of equipment.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
29
IN WITNESS WHEREOF the parties have hereunto set their hands and seals as of the Effective Date.
TOWER HILL MINES, INC |
Per: |
(signed) Jim Komadina |
Name: Jim Komadina |
Title: Chief Executive Officer |
ALASKA/NEVADA GOLD MINES LTD. |
Per: |
(signed) [Redacted Name] |
Name: [Redacted Name] |
Title: |
HEFLINGER MINING & EQUIPMENT COMPANY |
Per: |
(signed) Carl Heflinger |
Name: Carl Heflinger |
Title: |
CARL HEFLINGER |
(signed) Carl Heflinger |
FRED HEFLINGER |
(signed) Fred Heflinger |
30
SCHEDULE I
TO
STOCK AND ASSET PURCHASE
AGREEMENT
Attached to and made a part of that certain Stock and Asset Purchase Agreement dated the 13th day of December, 2011.
HEFLINGER CLAIMS
Heflinger Mining:
Fee Interests
Mineral Survey |
Patent
Number |
Claim
Names |
2447 | 50-90-0143 | No. 2 Above Discovery Association |
2447 | 50-90-0143 | No. 2A Above Discovery Association |
Federal Mining Claims
Township | Range | Section | BLM Claim # | Claim Name |
8 North | 5 West | 15NW | 61477 | Patsy Bench |
9 North | 4 West | 31SE | 61478 | Black Bench |
9 North | 4 West | 32SW | 61479 | Little Ben Bench |
9 North | 4 West | 32SW | 61480 | Oregon |
9 North | 4 West | 32SW | 61481 | Moonshine |
9 North | 4 West | 32SW | 61482 | Blue Bird |
9 North | 4 West | 32SW | 61483 | Nerma Fisko |
9 North | 4 West | 32NE | 61484 | Prosper |
9 North | 4 West | 32NE | 61485 | #2 Below Heine Creek |
9 North | 4 West | 32NE | 61486 | Windy Association |
9 North | 4 West | 32NE | 61487 | Triangle |
9 North | 4 West | 32NE | 61488 | Black Dimond |
9 North | 4 West | 29SE | 61489 | Robin |
9 North | 4 West | 28SW | 61490 | Dimond Ski Association |
9 North | 4 West | 28SW | 61491 | Hoover Devide |
9 North | 4 West | 29SE | 61492 | Mellon |
8 North | 5 West | 6SW | 61498 | #9 Above Discovery Association |
8 North | 4 West | 6NE | 61499 | #10 Above Bench |
8 North | 4 West | 5NW | 61500 | Gem Association |
9 North | 4 West | 32SW | 61501 | #18 Above Discovery Association |
9 North | 4 West | 32SE | 61502 | Sunshine |
9 North | 4 West | 32SE | 61503 | Last Chance Fraction |
9 North | 4 West | 32SE | 61504 | #23 above Discovery Association |
9 North | 4 West | 32SE | 61505 | Star Association |
9 North | 4 West | 32SE | 61506 | May Association |
9 North | 4 West | 32SE | 61507 | Hot Air Association |
9 North | 4 West | 32SE | 61508 | Option Association |
I-1
Carl Heflinger and Fred Heflinger:
Federal Mining Claims
Township | Range | Section | BLM Claim # | Claim Name |
9 North | 4 West | 32NE | 61493 | Tomtit Association |
9 North | 4 West | 1SE | 61494 | LaFrance Association |
I-2
SCHEDULE III
TO
STOCK AND ASSET PURCHASE
AGREEMENT
Attached to and made a part of that certain Stock and Asset Purchase Agreement dated the 13th day of December, 2011.
LIVENGOOD CLAIMS
Part 1 - Fee Interests
Mineral Survey |
Patent
Number |
Claim Names |
Sellers
Ownership |
832 | 743623 | Wagner Association Bench | 100% |
1604 | 1041577 | Snow Bird Bench | 100% |
1604 | 1041577 | Mint Bench | 100% |
1604 | 1041577 | Black Jack | 100% |
1609 | 1043895 | Navada Bench Placer | 100% |
1609 | 1043895 | Gold Brick Fraction Placer | 100% |
1623 | 1073686 | Italy | 100% |
1624 | 1073687 | Trustworthy Association | 100% |
1624 | 1073687 | Imperial Association | 100% |
1625 | 1075872 | Etna-Sunnyside Association | 15/16 |
1625 | 1075872 | Sunny Bench Association | 100% |
1640 | 1069069 | Duncan | 100% |
1641 | 1069097 | Eureka or No. 22 Creek Above on Livengood | 100% |
1641 | 1069097 | Placer Mining Claim No. 21 Above Discovery on Livengood Creek | 100% |
1641 | 1069097 | Placer Mining Claim No. 20 Above Discovery on Livengood Creek | 3/4 |
1641 | 1069097 | Placer Mining Claim No. 19 Above Discovery on Livengood Creek | 100% |
1641 | 1069097 | Last Chance | 100% |
1641 | 1069097 | Tolovana Bench | 100% |
1960 | 1036259 | No.1 Above Discovery on Livengood Creek | 100% |
1960 | 1036259 | The Tolovana Placer Mining Bench Claim on Right Limit of Livengood Creek | 100% |
1960 | 1036259 | No.1 Above Discovery Bench | 100% |
1960 | 1036259 | No. One Bench Fraction Above Discovery Right Limit Livengood Creek | 100% |
1960 | 1036259 | Ready Bullion Placer Mining Bench Claim on Right Limit of Livengood Creek | 100% |
1963 | 1045457 | Deep Channel Association | 100% |
1966 | 1031406 | Golden Rod Association | 100% |
2060 | 1117204 | Eldorado Bench | 100% |
III-1
Mineral Survey |
Patent
Number |
Claim Names |
Sellers
Ownership |
2071 | 1117929 | Marietta Association | 100% |
2152 | 1127946 | Hidden Treasure | 100% |
2152 | 1127946 | Hot Day | 100% |
Part 2 - Federal Mining Claims
Township | Range | Section | BLM Claim # | Claim Name |
8 North | 5 West | 11SE | 61249 | #5 above Discovery |
8 North | 5 West | 11SE | 61250 | Star fraction |
8 North | 5 West | 11SW | 61256 | #3 above discovery |
8 North | 5 West | 11SE | 61257 | #4 above discovery |
8 North | 5 West | 11NE | 61258 | Dickey-fraction |
8 North | 5 West | 11SE | 61259 | #4-a above discovery |
8 North | 5 West | 11NE | 61260 | #5 above discovery bench |
8 North | 5 West | 11NE | 61261 | #5 bench fraction, 1st tier |
8 North | 5 West | 11NE | 61262 | Leitrim a/k/a letruim, letrium, letram association |
8 North | 5 West | 12NW | 61263 | #7 bench right limit 1st tier above discovery |
8 North | 5 West | 12NW | 61264 | #7 above discovery |
8 North | 5 West | 12NW | 61265 | Rosalind fraction |
8 North | 5 West | 12NW | 61266 | #8 above discovery |
8 North | 5 West | 1SW | 61267 | Chatham bench association |
8 North | 5 West | 1SW | 61268 | Gold dollar association claim |
8 North | 4 West | 7NW | 61269 | Basin association claim |
8 North | 4 West | 6SW | 61270 | Dorothy association bench claim |
8 North | 4 West | 6SW | 61271 | Riffle association claim |
8 North | 4 West | 6SE | 61272 | Montana association |
8 North | 5 West | 11NE | 61273 | High grade fraction |
8 North | 5 West | 11NE | 61274 | Triangle fraction |
8 North | 5 West | 12NW | 61275 | #6 above discovery |
8 North | 5 West | 12NW | 61276 | o.k. fraction |
8 North | 5 West | 12NW | 61277 | #1 frank (franklin) gulch |
8 North | 5 West | 1SW | 61278 | #2 franklin gulch |
9 North | 4 West | 33SW | 61292 | Cloud association |
9 North | 4 West | 33SW | 61293 | Ruby bench |
8 North | 5 West | 28SW | 61322 | Pete |
8 North | 5 West | 28NW | 61323 | Mike |
8 North | 5 West | 21SE | 61324 | Ike |
8 North | 5 West | 21NE | 61325 | Carolyn |
8 North | 5 West | 21SE | 61326 | Sunshine Fraction |
8 North | 5 West | 16SE | 61327 | Frio |
8 North | 5 West | 16SW | 61328 | Ring |
8 North | 5 West | 16SW | 61329 | Pilot |
8 North | 5 West | 16SE | 61330 | Dan |
8 North | 5 West | 16SE | 61331 | Nyuk |
8 North | 5 West | 16SE | 61332 | Sweede Association |
III-2
Township | Range | Section | BLM Claim # | Claim Name |
8 North | 5 West | 15SW | 61333 | Eureka Banch claim |
8 North | 5 West | 15SW | 61334 | Bessie Bench |
8 North | 5 West | 15NW | 61335 | Jeanne |
8 North | 5 West | 16NE | 61336 | Hawk |
8 North | 5 West | 16NE | 61337 | Gypsy |
8 North | 5 West | 15NW | 61338 | Reef Association |
8 North | 5 West | 15NW | 61339 | California Fraction |
8 North | 5 West | 15NW | 61340 | No. 1 Below Discovery |
8 North | 5 West | 9SE | 61341 | Horse |
8 North | 5 West | 9SE | 61342 | Close |
8 North | 5 West | 10SW | 61343 | No. 2 Below Myrtle Creek |
8 North | 5 West | 15NW | 61344 | No. 1 Bench Right Limit |
8 North | 5 West | 15NW | 61345 | No. 1 Bench Fraction |
8 North | 5 West | 15NE | 61346 | Discovery Livengood Cr. Association |
8 North | 5 West | 10SW | 61347 | Placer Mining Claim No. 1 Below Discovery |
8 North | 5 West | 9SE | 61348 | Destiny |
8 North | 5 West | 9NE | 61349 | Jackpot |
8 North | 5 West | 10NW | 61350 | Nancy |
8 North | 5 West | 10NW | 61351 | Paystreak Bench Claim |
8 North | 5 West | 10NW | 61352 | Eureka Bench Claim on Left Limit |
8 North | 5 West | 10SW | 61353 | Deep Channel Fraction |
8 North | 5 West | 10NW | 61354 | Colorado Association |
8 North | 5 West | 10SE | 61355 | George Association, 2nd Tier |
8 North | 5 West | 10SE | 61356 | Gan Fraction, 2nd Tier right limit |
8 North | 5 West | 10NE | 61357 | Colorado Fraction, 3rd tier right limit |
8 North | 5 West | 10NE | 61358 | Sacramento Bench |
8 North | 5 West | 10NE | 61359 | Three Star Association |
8 North | 5 West | 10SE | 61360 | Toni Placer Mining Claim |
8 North | 5 West | 10NE | 61361 | Little Butch |
8 North | 5 West | 10NE | 61362 | Horseshoe claim |
8 North | 5 West | 10NE | 61363 | Carryall |
8 North | 5 West | 10NE | 61364 | Fish Association |
8 North | 5 West | 11NW | 61365 | Homesite Bench |
8 North | 5 West | 11NW | 61366 | Virgina Association |
8 North | 5 West | 10NW | 61367 | Eagle Bench Association |
8 North | 5 West | 11NE | 61368 | Birch Fraction |
8 North | 5 West | 2SE | 61369 | Brendan or Brandon Bench |
8 North | 5 West | 2SW | 61370 | Xmas |
8 North | 5 West | 2SE | 61371 | Blanche |
8 North | 5 West | 1SW | 61372 | Audrey Fraction |
8 North | 5 West | 1SW | 61373 | Gold Dollar Fraction |
8 North | 5 West | 1SW | 61374 | Livengood Bench Right Limit |
8 North | 5 West | 1NW | 61375 | Snow |
8 North | 5 West | 1NE | 61376 | Ice |
8 North | 5 West | 1SE | 61377 | Harding (Pearson) |
8 North | 5 West | 1SE | 61378 | Mayflower Claim |
8 North | 5 West | 1SE | 61379 | Golden Gusher Bench Claim |
III-3
Township | Range | Section | BLM Claim # | Claim Name |
8 North | 4 West | 6SW | 61380 | Bonznza Bench |
8 North | 4 West | 6NW | 61381 | North Star Association |
8 North | 4 West | 6NW | 61382 | Black Bear Association |
8 North | 4 West | 6NW | 61383 | Tom Cat Bench |
8 North | 4 West | 6NW | 61385 | Flat Association |
8 North | 4 West | 6SW | 61386 | Magnus Opus |
8 North | 4 West | 6NE | 61387 | Banner Bench claim |
8 North | 4 West | 6NE | 61388 | Jewel Bench |
8 North | 4 West | 6NW | 61389 | Wild Cat bench |
9 North | 4 West | 31SE | 61391 | Hum Dinger |
8 North | 4 West | 6NE | 61392 | Red Claim |
9 North | 4 West | 31SE | 61393 | Jerry Association |
9 North | 4 West | 32SW | 61394 | Alaska |
9 North | 4 West | 32NW | 61395 | California Association claim |
9 North | 4 West | 32NW | 61396 | Gol Run Bench, 2nd Tier |
9 North | 4 West | 29SE | 61399 | Spring Association |
9 North | 4 West | 28SE | 61406 | Wedge Claim |
9 North | 4 West | 28SE | 61407 | Bulldozer |
9 North | 4 West | 28SE | 61408 | Eve |
9 North | 4 West | 27SW | 61409 | Resavoir Association |
9 North | 4 West | 28SW | 61420 | Alabam on the divide |
9 North | 4 West | 29SW | 63462 | Dome a/k/a Dome Association |
9 North | 4 West | 1SW | 63466 | Marjorie Bench |
Part 3 - Alaska Mining Claims
Township | Range | Section | ADL Claim # | Claim Name |
8 North | 5 West | 10NE | 361349 | Galaxy 1 |
8 North | 5 West | 10NE | 361350 | Galaxy 2 |
8 North | 5 West | 2SW | 361351 | Galaxy 3 |
8 North | 5 West | 2SW 3SE 10NE 11NW | 361352 | Galaxy 4 |
8 North | 5 West | 10NE 11NW | 361353 | Galaxy 5 |
8 North | 5 West | 2SW | 361354 | Galaxy 6 |
8 North | 5 West | 2SW 11NW | 361355 | Galaxy 7 |
8 North | 5 West | 11NW | 361356 | Galaxy 8 |
8 North | 5 West | 2SW 2SE | 361357 | Galaxy 9 |
8 North | 5 West | 2SW 2SE 11NW 11NE | 361358 | Galaxy 10 |
8 North | 5 West | 1NW 1SW 2NE 2SE | 361359 | Galaxy 11 |
8 North | 5 West | 1SW 2SE | 361360 | Galaxy 12 |
8 North | 5 West | 1SW 2SE | 361361 | Galaxy 13 |
8 North | 5 West | 1NW 1NE | 361362 | Galaxy 14 |
8 North | 5 West | 1SW | 361363 | Galaxy 15 |
8 North | 5 West | 1NW 1SW | 361364 | Galaxy 16 |
8 North 9 North | 4 West | 6NW 7NE, 31SW | 361365 | Galaxy 17 |
8 North | 4 West | 6NW, 31SE | 361366 | Galaxy 18 |
III-4
Township | Range | Section | ADL Claim # | Claim Name |
9 North | ||||
9 North | 4 West | 31SE | 361367 | Galaxy 19 |
9 North | 4 West | 31SE | 361368 | Galaxy 20 |
9 North | 4 West | 28 | 603474 | FM9N4W28SW |
9 North | 4 West | 28 | 603475 | FM9N4W28SE |
9 North | 4 West | 28 | 603476 | FM9N4W28NE |
9 North | 4 West | 28 | 603477 | FM9N4W28NW |
III-5
SCHEDULE IV
TO
STOCK AND ASSET PURCHASE
AGREEMENT
Attached to and made a part of that certain Stock and Asset Purchase Agreement dated the 13th day of December, 2011.
QUITCLAIM DEED
[see attached form]
IV-1
RECORD THIS INSTRUMENT IN THE FAIRBANKS RECORDING DISTRICT
AFTER RECORDING, RETURN | |
THIS INSTRUMENT TO: | Tower Hill Mines, Inc. |
506 Gaffney, Suite 200, | |
Fairbanks, Alaska 99701 | |
QUITCLAIM DEED
THIS QUITCLAIM DEED, made this _____day of __________, 2011, by and between Heflinger Mining & Equipment Company, an Alaska general partnership whose address is P.O. Box 250, Ester, Alaska 99725, Carl F. Heflinger, whose address is [Redacted Address], and Fred Heflinger, whose address is [Redacted Address], hereinafter referred to as Grantors, and Tower Hill Mines, Inc., an Alaska corporation the address of which is 506 Gaffney, Suite 200, Fairbanks, Alaska 99701, hereinafter referred to as Grantee,
WITNESSETH
That Grantors and each of them, for and in consideration of One Dollar ($1.00) in hand paid and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, do hereby CONVEY and QUITCLAIM unto Grantee, its successors and assigns, all rights, titles, and interests, if any, which Grantors jointly or severally have in, to, under, and respecting the two (2) patented mining claims and the twenty-nine (29) unpatented federal mining claims described on the attached Exhibit A, TO HAVE AND TO HOLD THE SAME, together with all and singular, the appurtenances thereunto belonging or in anywise appertaining, FOREVER.
IV-2
IN WITNESS WHEREOF, each of the Grantors has executed this quitclaim deed the day and year first above written.
HEFLINGER MINING & EQUIPMENT COMPANY
By | ||
Carl F. Heflinger, Partner | ||
By | ||
Fred Heflinger, Partner | ||
CARL HEFLINGER, individually | ||
FRED HEFLINGER, individually |
IV-3
[acknowledgments of Grantors]
STATE OF ALASKA | ) |
) | |
FOURTH JUDICIAL DISTRICT | ) |
THIS CERTIFIES that on the _____day of _______________, 2011, at Fairbanks, Alaska, the foregoing instrument was acknowledged before me by Carl F. Heflinger and Fred Heflinger, partners in HEFLINGER MINING & EQUIPMENT COMPANY, an Alaska general partnership, on behalf of said general partnership.
Notary Public in and for Alaska | |
Residing at _________________________________________ | |
My commission expires ________________________________ |
STATE OF ALASKA | ) |
) | |
FOURTH JUDICIAL DISTRICT | ) |
THIS CERTIFIES that on the _____day of _______________, 2011, at Fairbanks, Alaska, the foregoing instrument was acknowledged before me by CARL F. HEFLINGER.
Notary Public in and for Alaska | |
Residing at _________________________________________ | |
My commission expires ________________________________ |
IV-4
STATE OF ALASKA | ) |
) | |
FOURTH JUDICIAL DISTRICT | ) |
THIS CERTIFIES that on the _____day of _______________, 2011, at Fairbanks, Alaska, the foregoing instrument was acknowledged before me by FRED HEFLINGER.
Notary Public in and for Alaska | |
Residing at _________________________________________ | |
My commission expires ________________________________ |
IV-5
EXHIBIT A
Heflinger Mining:
Part 1: Fee Interests
Mineral Survey |
Patent
Number |
Claim
Names |
2447 | 50-90-0143 | No. 2 Above Discovery Association |
2447 | 50-90-0143 | No. 2A Above Discovery Association |
Part 2: Federal Mining Claims
Township | Range | Section | BLM Claim # | Claim Name |
8 North | 5 West | 15NW | 61477 | Patsy Bench |
9 North | 4 West | 31SE | 61478 | Black Bench |
9 North | 4 West | 32SW | 61479 | Little Ben Bench |
9 North | 4 West | 32SW | 61480 | Oregon |
9 North | 4 West | 32SW | 61481 | Moonshine |
9 North | 4 West | 32SW | 61482 | Blue Bird |
9 North | 4 West | 32SW | 61483 | Nerma Fisko |
9 North | 4 West | 32NE | 61484 | Prosper |
9 North | 4 West | 32NE | 61485 | #2 Below Heine Creek |
9 North | 4 West | 32NE | 61486 | Windy Association |
9 North | 4 West | 32NE | 61487 | Triangle |
9 North | 4 West | 32NE | 61488 | Black Dimond |
9 North | 4 West | 29SE | 61489 | Robin |
9 North | 4 West | 28SW | 61490 | Dimond Ski Association |
9 North | 4 West | 28SW | 61491 | Hoover Devide |
9 North | 4 West | 29SE | 61492 | Mellon |
8 North | 5 West | 6SW | 61498 | #9 Above Discovery Association |
8 North | 4 West | 6NE | 61499 | #10 Above Bench |
8 North | 4 West | 5NW | 61500 | Gem Association |
9 North | 4 West | 32SW | 61501 | #18 Above Discovery Association |
9 North | 4 West | 32SE | 61502 | Sunshine |
9 North | 4 West | 32SE | 61503 | Last Chance Fraction |
9 North | 4 West | 32SE | 61504 | #23 above Discovery Association |
9 North | 4 West | 32SE | 61505 | Star Association |
9 North | 4 West | 32SE | 61506 | May Association |
9 North | 4 West | 32SE | 61507 | Hot Air Association |
9 North | 4 West | 32SE | 61508 | Option Association |
IV-6
Carl Heflinger and Fred Heflinger:
Federal Mining Claims
Township | Range | Section | BLM Claim # | Claim Name |
9 North | 4 West | 32NE | 61493 | Tomtit Association |
9 North | 4 West | 1SE | 61494 | LaFrance Association |
IV-7
SCHEDULE V
TO
STOCK AND ASSET PURCHASE
AGREEMENT
Attached to and made a part of that certain Stock and Asset Purchase Agreement dated the 13th day of December, 2011.
DEED OF TRUST
[see attached]
V-1
RECORD THIS INSTRUMENT IN THE FAIRBANKS RECORDING DISTRICT
RETURN THIS | |
INSTRUMENT TO: | ALASKA/NEVADA GOLD MINES, LTD. |
626 Second Street, Suite 202 | |
Fairbanks, AK 99701 | |
DEED OF TRUST |
given by |
TOWER HILL MINES, INC. |
and |
LIVENGOOD PLACERS, INC. |
(collectively, Trustor) |
to |
YUKON TITLE COMPANY, INC. (Trustee) |
and |
ALASKA/NEVADA GOLD MINES, LTD. |
and |
HEFLINGER MINING & EQUIPMENT COMPANY |
(collectively Beneficiaries and each a Beneficiary) |
December 13, 2011 |
DEED OF TRUST (Cover Page)
TABLE OF CONTENTS
DEED OF TRUST (Table of Contents)Page i
THIS DEED OF TRUST (this Instrument) given as of the 13th day of December, 2011, by TOWER HILL MINES, INC., an Alaska corporation the address of which is 506 Gaffney Road, Suite 200, Fairbanks, Alaska 99701, and LIVENGOOD PLACERS, INC., a Nevada corporation authorized to transact business in Alaska the address of which is c/o TOWER HILL MINES, INC., 506 Gaffney Road, Suite 200, Fairbanks, Alaska 99701 (Tower Hill Mines, Inc. and Livengood Placers, Inc. collectively are referred to herein as Trustor), to YUKON TITLE COMPANY, INC. (Trustee), an Alaska corporation the address of which is 714 Gaffney Road, Fairbanks, Alaska 99701, and ALASKA/NEVADA GOLD MINES, LTD., a California limited partnership the address of which is 626 Second Street, Suite 202, Fairbanks, AK 99701, and HEFLINGER MINING & EQUIPMENT COMPANY, an Alaska general partnership the address of which is 221 Eagan Avenue #132, Fairbanks, AK 99701 (Alaska/Nevada Gold Mines, Ltd. and Heflinger Mining & Equipment Company collectively are referred to herein as Beneficiaries and individually as a Beneficiary).
WITNESSETH:
THAT FOR AND IN CONSIDERATION of $10.00 and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Trustor and Beneficiaries hereby act and agree as follows:
1. Definitions.
For purposes of this Instrument, the following terms shall have the following meanings:
Agreement means that certain Stock and Asset Purchase Agreement dated December 13, 2011, among, inter alia, Beneficiaries and Tower respecting, inter alia, the Mortgaged Properties, as the same may be amended or modified in writing by the Parties from time to time.
Lands means the lands included in the Real Property.
Mortgaged Properties means the Real Property.
Real Property means all rights, title, and interests now owned or hereafter acquired by Trustor in, to, under or respecting the real property described in Exhibit A attached hereto.
Secured Obligation means the obligation of Tower to each Beneficiary to pay the portion of the Contingent Final Payment (as defined in the Agreement) to such Beneficiary in accordance with the Agreement.
Tower means Tower Hill Mines, Inc.
DEED OF TRUSTPage 1
2. Grant of Security Interest in Real Property.
Trustor hereby GRANTS, BARGAINS, SELLS, ASSIGNS, TRANSFERS, MORTGAGES, and CONVEYS unto Trustee in trust, with power of sale, for the benefit of each Beneficiary, all rights, titles, and interests now held or hereafter acquired by or for Trustor or to which Trustor now or hereafter is entitled in, under, to, or respecting the Real Property and the Lands, TO HAVE AND TO HOLD said property unto Trustee, subject to all of the terms, conditions, and provisions of this Instrument and for the uses and purposes set forth in this Instrument, forever.
3. Secured Obligation.
This Instrument is executed and delivered by Trustor to secure the due and punctual payment to each Beneficiary by Trustor of the Secured Obligation.
4. Representations and Warranties of Trustor.
Trustor hereby represents and warrants that Trustor owns the Mortgaged Properties free and clear of any and all liens, charges, encumbrances, security interests, royalties, or other interests of third parties arising by, through, or under Trustor, but not otherwise.
5. Covenants of Trustor.
Trustor hereby agrees and covenants as follows:
(a) |
(1) to keep, or to cause to be keptexcept as expressly provided in subparagraph (a)(2) belowthe Mortgaged Properties in good standing (A) under the laws of the United States, the State of Alaska, and any relevant local laws and (B) under any agreements relating to the Mortgaged Properties; and, in the case of payments that must be made to the United States, or the State of Alaska, from time to time or in the case of documents that must be filed with the United States, or the State of Alaska, from time to time to maintain the Real Property in good standing, to deliver to each Beneficiarywithin three days after the making of any such payment or filingevidence of the making of each such payment or filing at least 30 days in advance of the due date therefor; | |
(2) upon delivery of written notice to Beneficiaries together with a copy of an agreement between Tower and the Alaska Mental Health Trust Authority (AMHTA) pursuant to which AMHTA, acting through the Trust Land Office, agrees that (A) all of the Lands included within any Real Property that Trustor abandons for the purpose of allowing said lands to be acquired by AMHTA and added to a new or existing mining lease between AMHTA and Tower will be so added to said mining lease and (B) Towers interest under said mining lease insofar as it covers and includes said lands will be subjected to the lien of this Instrument and thus added to the Mortgaged Properties, Trustor may abandon such of the Real Property as is described in said notice; |
DEED OF TRUSTPage 2
(b) |
to comply with, or to cause to be complied with, all applicable and valid laws, rules, and regulations of the United States, the State of Alaska, and any other governmental entity exercising jurisdiction over the Mortgaged Properties or the exploration, development, or mining thereof or the production of valuable minerals therefrom; | |
(c) |
to undertake, or to cause to be undertaken, any and all work upon the Mortgaged Properties in accordance with standards of performance common to the mining industry in North America; | |
(d) |
to carry, or to cause to be carried, workmens compensation insurance, employers liability insurance, comprehensive general liability insurance, comprehensive motor vehicle and trailer liability insurance, umbrella excess liability insurance, and such other insurance as may be necessary or proper, in amounts sufficient to cover Trustors operations and affairs undertaken in connection with the Mortgaged Properties; | |
(e) |
to pay, or to cause to be paid, before delinquent, all lawful taxes, assessments, or other charges of every kind and character assessed, levied, or imposed on or in connection with the Mortgaged Properties or the exploration, development, or mining thereof or the production of valuable minerals therefrom, including without limitation any applicable federal or state income taxes or severance taxes; | |
(f) |
to notify Beneficiaries promptly of any threatened claim, litigation, or other event affecting the representations and warranties of Trustor contained in Paragraph 4 or any other provision of this Instrument or the Exhibits attached hereto relating to Trustor or the Mortgaged Properties; | |
(g) |
to pay promptly, or to cause to be paid promptly, all bills for labor or material in connection with the Mortgaged Properties or the exploration, development, or mining thereof or the production of valuable minerals therefrom; | |
(h) |
to permit each Beneficiary, at its own risk, to enter upon, examine, and inspect the Mortgaged Properties and any and all exploration, development, mining, or production operations being conducted thereon; | |
(i) |
to do, or to cause to be done, all things necessary or proper to maintain and defend Trustors right, title, and interest in and to the Mortgaged Properties as represented and warranted in Paragraph 4 of this Instrument; | |
(j) |
to do, or to cause to be done, all things necessary or proper to maintain the Mortgaged Properties in good repair, working order, and condition, and to make, or to cause to be made, from time to time all necessary or proper repairs, substitutions, or replacements of the Mortgaged Properties; |
DEED OF TRUSTPage 3
(k) |
not to create any security interest, charge, lien or other encumbrance (except purchase money security interests in real or personal property added to the Mortgaged Properties) upon the Mortgaged Properties or any part thereof ranking or purporting to rank in priority higher than or equal to the security interest created by this Instrument. |
6. Events of Default and Remedies.
The failure of Tower to make due and punctual payment of the Secured Obligation to a Beneficiary in accordance with the Agreement shall be an Event of Default in respect of such Benefiaciary, provided, however, that Trustee or such Beneficiary shall first give written notice of an Event of Default to Trustor (and to any third party (Interested Party) which Trustor may from time to time request in writing to the Beneficiaries that notice be given of an Event of Default) and Trustor shall have a period of 30 days from the date of such notice to remedy the Event of Default. Trustee and Beneficiaries hereby agree that any Interested Party shall be entitled to make payment of a Default Amount in full satisfaction of the Trustors obligations hereunder. Upon the occurrence of any Event of Default that is continuing following such 30-day period, the affected Beneficiary or Beneficiaries, as the case may be,
(a) |
may execute or cause Trustee to execute a written notice of such default and of the affected Beneficiarys or Beneficiaries election to cause to be sold the Mortgaged Properties held by Trustee to satisfy the Secured Obligation; and | |
(b) |
shall cause such notice to be recorded in the office of the district recorder for the recording district in which said property or some part thereof is located. Notice of sale shall be given as then required by law. |
Thereafter, Trustee, without demand on Trustor, shall sell said property in Fairbanks, Alaska, or such other location as allowed by law, at the place provided by law at the time fixed in said notice of sale, either as a whole or in separate parcels and in such order as it may determine, at public auction to the highest and best bidder. The affected Beneficiary or Beneficiaries, as the case may be, shall have the right to make an offset bid without cash in an amount equal to the balance owed it or them by Trustor at the time of the sale, including any sums expended by said Beneficiary or Beneficiaries and Trustee under this Instrument with interest, costs of sale, and attorneys fees. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to the purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person including Trustor, Trustee, or any Beneficiary, may purchase at such sale. After deducting all costs and fees of Trustee, including without limitation costs of evidence of title and attorneys fees in connection with the sale, Trustee shall apply the proceeds of sale to payment of all sums expended under the terms hereof, all other sums then secured hereby, and the remainder, if any, to the person or persons legally entitled thereto.
DEED OF TRUSTPage 4
Nothing contained herein shall be construed to limit the right of an affected Beneficiary to foreclose this Instrument by judicial action or to bring an action upon any promise to pay a certain amount or amounts that is secured by this Instrument without attempting to foreclose this Instrument either by exercise of the power of sale or by judicial action.
TRUSTOR IS PERSONALLY OBLIGATED AND FULLY LIABLE FOR THE AMOUNTS DUE UNDER THE AGREEMENT. EACH BENEFICIARY HAS THE RIGHT TO SUE ON THE AGREEMENT AND TO OBTAIN A PERSONAL JUDGMENT AGAINST TRUSTOR FOR THE AMOUNT DUE TO SUCH BENEFICIARY UNDER THE AGREEMENT EITHER BEFORE OR AFTER A JUDICIAL FORECLOSURE UNDER ALASKA STATUTES 09.45.170 -09.45.220 OF THIS INSTRUMENT GIVEN BY TRUSTOR TO SECURE PAYMENT OF THE AMOUNTS DUE TO SUCH BENEFICIARY UNDER THE AGREEMENT.
Trustor shall pay all costs and attorneys fees incurred by Trustee or the affected Beneficiary or Beneficiaries in connection with any sale under or pursuant to this Instrument.
Trustee accepts this trust when this Instrument, duly executed and acknowledged, is made a public record as provided by law.
The Beneficiaries may from time to time as provided by law appoint another Trustee in place and stead of Trustee herein named, and thereupon Trustee herein named shall be discharged and Trustee so appointed shall be substituted as Trustee hereunder with the same effect as if originally named Trustee herein.
7. Reconveyance by Trustee and Release by Beneficiary.
Upon the full and complete performance of the Secured Obligation to each Beneficiary, (a) this Instrument shall automatically terminate and be of no further force and effect, (b) the Mortgaged Properties shall become wholly free and clear of any lien imposed by this Instrument, (c) each Beneficiary shall promptly deliver to Trustee a written notice stating that the Secured Obligation owing to it has been paid or otherwise fulfilled and instructing Trusteeupon receipt of written notices from both Beneficiaries as described above and upon payment of its feesto reconvey, without warranty, the Mortgaged Properties then held under this Instrument, and (d) each Beneficiary shall promptly execute and deliver to Trustor a release of this Instrument and such other instruments of satisfaction or release (including without limitation termination statements) as may be appropriate.
8. Addresses.
For all purposes of this Instrument the addresses of Trustor and the Beneficiaries shall be as follows, until changed in a written notice delivered to the other party:
DEED OF TRUSTPage 5
Trustors: | c/o TOWER HILL MINES, INC., | ||
Attention: James J. Komadina | |||
Suite 350, 9635 Maroon Circle, | |||
Englewood, CO 80112 | |||
Telephone: | 720-881-7646 | ||
Email: jkomadina@ithmines.com | |||
Beneficiaries: | c/o ALASKA/NEVADA GOLD MINES, LTD. | ||
Attention: [Redacted Name] | |||
626 Second Street, Suite 202 | |||
Fairbanks, AK | 99701 | ||
Telephone: | [Redacted Telephone] | ||
Facsimile: | [Redacted Fax] | ||
Email: | [Redacted Email] |
9. Further Actions.
The parties hereto hereby agree to take any and all actions and to execute, acknowledge, and deliver any and all documents reasonably necessary to effect the purposes of this Instrument.
10. Assignment; Binding Effect.
Each Beneficiary may assign any or all of its rights under this Instrument at any time and from time to time. This Instrument shall be binding upon and inure to the benefit of Trustor, each Beneficiary, and their respective successors and assigns.
11. Applicable Law.
This Agreement shall be interpreted, construed, and enforced in accordance with, and otherwise governed in all respects by, the laws (including the conflict of law rules) of the State of Alaska.
DEED OF TRUSTPage 6
IN WITNESS WHEREOF, the parties have caused this Instrument to be executed as of the date first above written.
TRUSTOR:
TOWER HILL MINES, INC.
By: | ||
Name: | James J. Komadina | |
Title: | CEO | |
LIVENGOOD PLACERS, INC. | ||
By: | ||
Name: | ||
Title: | ||
BENEFICIARIES: | ||
HEFLINGER MINING & EQUIPMENT COMPANY | ||
By: | ||
Name: | Carl F. Heflinger | |
Title: | General Partner | |
ALASKA/NEVADA GOLD MINES, LTD. | ||
By: | Professional Mine Management Company | |
By: | ||
Name: [Redacted Name] | ||
Title: Partner of the General Partner |
DEED OF TRUSTPage 7
STATE OF ALASKA | ) |
) ss. | |
FOURTH JUDICIAL DISTRICT | ) |
On this ____ day of December, 2011, the foregoing instrument was acknowledged before me by James J. Komadina, CEO of Tower Hill Mines, Inc., an Alaska corporation, on behalf of said corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written.
Notary Public in and for the State of Alaska | |
My commission expires ________________________________ |
STATE OF ALASKA | ) |
) ss. | |
FOURTH JUDICIAL DISTRICT | ) |
On this ____ day of December, 2011, the foregoing instrument was acknowledged before me by name _______________, (title) ____________________ of Livengood Placers, Inc., a Nevada corporation, on behalf of said corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written.
Notary Public in and for the State of Alaska | |
My commission expires ________________________________ |
DEED OF TRUSTPage 8
STATE OF ALASKA | ) |
) ss. | |
FOURTH JUDICIAL DISTRICT | ) |
On this ____ day of December, 2011, the foregoing instrument was acknowledged before me by Carl Heflinger, a General Partner in Heflinger Mining & Equipment Company, an Alaska general partnership, on behalf of said partnership..
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written.
Notary Public in and for the State of Alaska | |
My commission expires ________________________________ |
STATE OF ALASKA | ) |
) ss. | |
FOURTH JUDICIAL DISTRICT | ) |
On this ____ day of December, 2011, the foregoing instrument was acknowledged before me by [Redacted Name], partner of Professional Mine Management Company, the general partner in Alaska/Nevada Gold Mines, Ltd., a California limited partnership, on behalf of said general partner acting on behalf of said limited partnership.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written.
Notary Public in and for the State of Alaska | |
My commission expires ________________________________ |
DEED OF TRUSTPage 9
EXHIBIT A
TO
DEED OF TRUST
HEFLINGER CLAIMS
Heflinger Mining:
Part 1: Fee Interests
Mineral Survey |
Patent
Number |
Claim
Names |
2447 | 50-90-0143 | No. 2 Above Discovery Association |
2447 | 50-90-0143 | No. 2A Above Discovery Association |
Part 2 - Federal Mining Claims
Township | Range | Section | BLM Claim # | Claim Name |
8 North | 5 West | 15NW | 61477 | Patsy Bench |
9 North | 4 West | 31SE | 61478 | Black Bench |
9 North | 4 West | 32SW | 61479 | Little Ben Bench |
9 North | 4 West | 32SW | 61480 | Oregon |
9 North | 4 West | 32SW | 61481 | Moonshine |
9 North | 4 West | 32SW | 61482 | Blue Bird |
9 North | 4 West | 32SW | 61483 | Nerma Fisko |
9 North | 4 West | 32NE | 61484 | Prosper |
9 North | 4 West | 32NE | 61485 | #2 Below Heine Creek |
9 North | 4 West | 32NE | 61486 | Windy Association |
9 North | 4 West | 32NE | 61487 | Triangle |
9 North | 4 West | 32NE | 61488 | Black Dimond |
9 North | 4 West | 29SE | 61489 | Robin |
9 North | 4 West | 28SW | 61490 | Dimond Ski Association |
9 North | 4 West | 28SW | 61491 | Hoover Devide |
9 North | 4 West | 29SE | 61492 | Mellon |
8 North | 5 West | 6SW | 61498 | #9 Above Discovery Association |
8 North | 4 West | 6NE | 61499 | #10 Above Bench |
8 North | 4 West | 5NW | 61500 | Gem Association |
9 North | 4 West | 32SW | 61501 | #18 Above Discovery Association |
9 North | 4 West | 32SE | 61502 | Sunshine |
9 North | 4 West | 32SE | 61503 | Last Chance Fraction |
9 North | 4 West | 32SE | 61504 | #23 above Discovery Association |
9 North | 4 West | 32SE | 61505 | Star Association |
9 North | 4 West | 32SE | 61506 | May Association |
9 North | 4 West | 32SE | 61507 | Hot Air Association |
9 North | 4 West | 32SE | 61508 | Option Association |
DEED OF TRUSTPage 10
Carl Heflinger and Fred Heflinger:
Federal Mining Claims
Township | Range | Section | BLM Claim # | Claim Name |
9 North | 4 West | 32NE | 61493 | Tomtit Association |
9 North | 4 West | 1SE | 61494 | LaFrance Association |
LIVENGOOD CLAIMS
Part 1: Fee Interests
Mineral Survey |
Patent
Number |
Claim Names |
Sellers
Ownership |
832 | 743623 | Wagner Association Bench | 100% |
1604 | 1041577 | Snow Bird Bench | 100% |
1604 | 1041577 | Mint Bench | 100% |
1604 | 1041577 | Black Jack | 100% |
1609 | 1043895 | Navada Bench Placer | 100% |
1609 | 1043895 | Gold Brick Fraction Placer | 100% |
1623 | 1073686 | Italy | 100% |
1624 | 1073687 | Trustworthy Association | 100% |
1624 | 1073687 | Imperial Association | 100% |
1625 | 1075872 | Etna-Sunnyside Association | 15/16 |
1625 | 1075872 | Sunny Bench Association | 100% |
1640 | 1069069 | Duncan | 100% |
1641 | 1069097 | Eureka or No. 22 Creek Above on Livengood | 100% |
1641 | 1069097 | Placer Mining Claim No. 21 Above Discovery on Livengood Creek | 100% |
1641 | 1069097 | Placer Mining Claim No. 20 Above Discovery on Livengood Creek | 3/4 |
1641 | 1069097 | Placer Mining Claim No. 19 Above Discovery on Livengood Creek | 100% |
1641 | 1069097 | Last Chance | 100% |
1641 | 1069097 | Tolovana Bench | 100% |
1960 | 1036259 | No.1 Above Discovery on Livengood Creek | 100% |
1960 | 1036259 | The Tolovana Placer Mining Bench Claim on Right Limit of Livengood Creek | 100% |
1960 | 1036259 | No.1 Above Discovery Bench | 100% |
1960 | 1036259 | No. One Bench Fraction Above Discovery Right Limit Livengood Creek | 100% |
1960 | 1036259 | Ready Bullion Placer Mining Bench Claim on Right Limit of Livengood Creek | 100% |
1963 | 1045457 | Deep Channel Association | 100% |
1966 | 1031406 | Golden Rod Association | 100% |
DEED OF TRUSTPage 11
Mineral Survey |
Patent
Number |
Claim Names |
Sellers
Ownership |
2060 | 1117204 | Eldorado Bench | 100% |
2071 | 1117929 | Marietta Association | 100% |
2152 | 1127946 | Hidden Treasure | 100% |
2152 | 1127946 | Hot Day | 100% |
Part 2: Federal Mining Claims
Township | Range | Section | BLM Claim # | Claim Name |
8 North | 5 West | 11SE | 61249 | #5 above Discovery |
8 North | 5 West | 11SE | 61250 | Star fraction |
8 North | 5 West | 11SW | 61256 | #3 above discovery |
8 North | 5 West | 11SE | 61257 | #4 above discovery |
8 North | 5 West | 11NE | 61258 | Dickey-fraction |
8 North | 5 West | 11SE | 61259 | #4-a above discovery |
8 North | 5 West | 11NE | 61260 | #5 above discovery bench |
8 North | 5 West | 11NE | 61261 | #5 bench fraction, 1st tier |
8 North | 5 West | 11NE | 61262 | Leitrim a/k/a letruim, letrium, letram association |
8 North | 5 West | 12NW | 61263 | #7 bench right limit 1st tier above discovery |
8 North | 5 West | 12NW | 61264 | #7 above discovery |
8 North | 5 West | 12NW | 61265 | Rosalind fraction |
8 North | 5 West | 12NW | 61266 | #8 above discovery |
8 North | 5 West | 1SW | 61267 | Chatham bench association |
8 North | 5 West | 1SW | 61268 | Gold dollar association claim |
8 North | 4 West | 7NW | 61269 | Basin association claim |
8 North | 4 West | 6SW | 61270 | Dorothy association bench claim |
8 North | 4 West | 6SW | 61271 | Riffle association claim |
8 North | 4 West | 6SE | 61272 | Montana association |
8 North | 5 West | 11NE | 61273 | High grade fraction |
8 North | 5 West | 11NE | 61274 | Triangle fraction |
8 North | 5 West | 12NW | 61275 | #6 above discovery |
8 North | 5 West | 12NW | 61276 | o.k. fraction |
8 North | 5 West | 12NW | 61277 | #1 frank (franklin) gulch |
8 North | 5 West | 1SW | 61278 | #2 franklin gulch |
9 North | 4 West | 33SW | 61292 | Cloud association |
9 North | 4 West | 33SW | 61293 | Ruby bench |
8 North | 5 West | 28SW | 61322 | Pete |
8 North | 5 West | 28NW | 61323 | Mike |
8 North | 5 West | 21SE | 61324 | Ike |
8 North | 5 West | 21NE | 61325 | Carolyn |
8 North | 5 West | 21SE | 61326 | Sunshine Fraction |
8 North | 5 West | 16SE | 61327 | Frio |
8 North | 5 West | 16SW | 61328 | Ring |
8 North | 5 West | 16SW | 61329 | Pilot |
8 North | 5 West | 16SE | 61330 | Dan |
8 North | 5 West | 16SE | 61331 | Nyuk |
8 North | 5 West | 16SE | 61332 | Sweede Association |
DEED OF TRUSTPage 12
Township | Range | Section | BLM Claim # | Claim Name |
8 North | 5 West | 15SW | 61333 | Eureka Banch claim |
8 North | 5 West | 15SW | 61334 | Bessie Bench |
8 North | 5 West | 15NW | 61335 | Jeanne |
8 North | 5 West | 16NE | 61336 | Hawk |
8 North | 5 West | 16NE | 61337 | Gypsy |
8 North | 5 West | 15NW | 61338 | Reef Association |
8 North | 5 West | 15NW | 61339 | California Fraction |
8 North | 5 West | 15NW | 61340 | No. 1 Below Discovery |
8 North | 5 West | 9SE | 61341 | Horse |
8 North | 5 West | 9SE | 61342 | Close |
8 North | 5 West | 10SW | 61343 | No. 2 Below Myrtle Creek |
8 North | 5 West | 15NW | 61344 | No. 1 Bench Right Limit |
8 North | 5 West | 15NW | 61345 | No. 1 Bench Fraction |
8 North | 5 West | 15NE | 61346 | Discovery Livengood Cr. Association |
8 North | 5 West | 10SW | 61347 | Placer Mining Claim No. 1 Below Discovery |
8 North | 5 West | 9SE | 61348 | Destiny |
8 North | 5 West | 9NE | 61349 | Jackpot |
8 North | 5 West | 10NW | 61350 | Nancy |
8 North | 5 West | 10NW | 61351 | Paystreak Bench Claim |
8 North | 5 West | 10NW | 61352 | Eureka Bench Claim on Left Limit |
8 North | 5 West | 10SW | 61353 | Deep Channel Fraction |
8 North | 5 West | 10NW | 61354 | Colorado Association |
8 North | 5 West | 10SE | 61355 | George Association, 2nd Tier |
8 North | 5 West | 10SE | 61356 | Gan Fraction, 2nd Tier right limit |
8 North | 5 West | 10NE | 61357 | Colorado Fraction, 3rd tier right limit |
8 North | 5 West | 10NE | 61358 | Sacramento Bench |
8 North | 5 West | 10NE | 61359 | Three Star Association |
8 North | 5 West | 10SE | 61360 | Toni Placer Mining Claim |
8 North | 5 West | 10NE | 61361 | Little Butch |
8 North | 5 West | 10NE | 61362 | Horseshoe claim |
8 North | 5 West | 10NE | 61363 | Carryall |
8 North | 5 West | 10NE | 61364 | Fish Association |
8 North | 5 West | 11NW | 61365 | Homesite Bench |
8 North | 5 West | 11NW | 61366 | Virgina Association |
8 North | 5 West | 10NW | 61367 | Eagle Bench Association |
8 North | 5 West | 11NE | 61368 | Birch Fraction |
8 North | 5 West | 2SE | 61369 | Brendan or Brandon Bench |
8 North | 5 West | 2SW | 61370 | Xmas |
8 North | 5 West | 2SE | 61371 | Blanche |
8 North | 5 West | 1SW | 61372 | Audrey Fraction |
8 North | 5 West | 1SW | 61373 | Gold Dollar Fraction |
8 North | 5 West | 1SW | 61374 | Livengood Bench Right Limit |
8 North | 5 West | 1NW | 61375 | Snow |
8 North | 5 West | 1NE | 61376 | Ice |
8 North | 5 West | 1SE | 61377 | Harding (Pearson) |
8 North | 5 West | 1SE | 61378 | Mayflower Claim |
8 North | 5 West | 1SE | 61379 | Golden Gusher Bench Claim |
DEED OF TRUSTPage 13
Township | Range | Section | BLM Claim # | Claim Name |
8 North | 4 West | 6SW | 61380 | Bonznza Bench |
8 North | 4 West | 6NW | 61381 | North Star Association |
8 North | 4 West | 6NW | 61382 | Black Bear Association |
8 North | 4 West | 6NW | 61383 | Tom Cat Bench |
8 North | 4 West | 6NW | 61385 | Flat Association |
8 North | 4 West | 6SW | 61386 | Magnus Opus |
8 North | 4 West | 6NE | 61387 | Banner Bench claim |
8 North | 4 West | 6NE | 61388 | Jewel Bench |
8 North | 4 West | 6NW | 61389 | Wild Cat bench |
9 North | 4 West | 31SE | 61391 | Hum Dinger |
8 North | 4 West | 6NE | 61392 | Red Claim |
9 North | 4 West | 31SE | 61393 | Jerry Association |
9 North | 4 West | 32SW | 61394 | Alaska |
9 North | 4 West | 32NW | 61395 | California Association claim |
9 North | 4 West | 32NW | 61396 | Gol Run Bench, 2nd Tier |
9 North | 4 West | 29SE | 61399 | Spring Association |
9 North | 4 West | 28SE | 61406 | Wedge Claim |
9 North | 4 West | 28SE | 61407 | Bulldozer |
9 North | 4 West | 28SE | 61408 | Eve |
9 North | 4 West | 27SW | 61409 | Resavoir Association |
9 North | 4 West | 28SW | 61420 | Alabam on the divide |
9 North | 4 West | 29SW | 63462 | Dome a/k/a Dome Association |
9 North | 4 West | 1SW | 63466 | Marjorie Bench |
Part 3: Alaska Mining Claims
Township | Range | Section | ADL Claim # | Claim Name |
8 North | 5 West | 10NE | 361349 | Galaxy 1 |
8 North | 5 West | 10NE | 361350 | Galaxy 2 |
8 North | 5 West | 2SW | 361351 | Galaxy 3 |
8 North | 5 West | 2SW 3SE 10NE 11NW | 361352 | Galaxy 4 |
8 North | 5 West | 10NE 11NW | 361353 | Galaxy 5 |
8 North | 5 West | 2SW | 361354 | Galaxy 6 |
8 North | 5 West | 2SW 11NW | 361355 | Galaxy 7 |
8 North | 5 West | 11NW | 361356 | Galaxy 8 |
8 North | 5 West | 2SW 2SE | 361357 | Galaxy 9 |
8 North | 5 West | 2SW 2SE 11NW 11NE | 361358 | Galaxy 10 |
8 North | 5 West | 1NW 1SW 2NE 2SE | 361359 | Galaxy 11 |
8 North | 5 West | 1SW 2SE | 361360 | Galaxy 12 |
8 North | 5 West | 1SW 2SE | 361361 | Galaxy 13 |
8 North | 5 West | 1NW 1NE | 361362 | Galaxy 14 |
8 North | 5 West | 1SW | 361363 | Galaxy 15 |
8 North | 5 West | 1NW 1SW | 361364 | Galaxy 16 |
8 North 9 North |
4 West |
6NW 7NE, 31SW |
361365 |
Galaxy 17 |
8 North 9 North |
4 West |
6NW, 31SE |
361366 |
Galaxy 18
|
DEED OF TRUSTPage 14
Township | Range | Section | ADL Claim # | Claim Name |
9 North | 4 West | 31SE | 361367 | Galaxy 19 |
9 North | 4 West | 31SE | 361368 | Galaxy 20 |
9 North | 4 West | 28 | 603474 | FM9N4W28SW |
9 North | 4 West | 28 | 603475 | FM9N4W28SE |
9 North | 4 West | 28 | 603476 | FM9N4W28NE |
9 North | 4 West | 28 | 603477 | FM9N4W28NW |
DEED OF TRUSTPage 15
SCHEDULE VII
TO
STOCK AND ASSET PURCHASE
AGREEMENT
Attached to and made a part of that certain Stock and Asset Purchase Agreement dated the 13th day of December, 2011.
TERMINATION AND RELINQUISHMENT
The Lease Agreement dated June 3, 1996 by and between Heflinger Mining and Equipment Company, as Lessor, and Alaska/Nevada Gold Mines, Ltd, as Lessee, which lease was previously modified by Amendment No. 1 dated November 16, 2006, Amendment No. 2 dated November 24, 2007, and Amendment No. 3 dated June 16, 2009, shall, by mutual agreement of the parties terminate effective on the Closing of the mining claim sale between Alaska/Nevada Gold Mines, Ltd., Heflinger Mining & Equipment Company, Carl Heflinger, and Fred Heflinger as Sellers and Tower Hill Mines, Inc., as Buyer. The undersigned parties hereby relinquish all their rights and obligations under the above referenced Lease Agreement.
LESSOR:
Heflinger Mining and Equipment Company
By: | ||
Carl Frederick Heflinger | ||
Partner and Authorized Representative |
LESSEE:
Alaska/Nevada Gold Mines, Ltd.
a
California Limited Partnership
By: | ||
[Redacted Name] | ||
General Manager and Partner of | ||
Professional Mine Management Company | ||
The General Partner |
VII-1
SCHEDULE VIII
TO
STOCK AND ASSET PURCHASE
AGREEMENT
Attached to and made a part of that certain Stock and Asset Purchase Agreement dated the 13th day of December, 2011.
FIRPTA CERTIFICATES
[see attached forms]
VIII-1
AFFIDAVIT OF NON-FOREIGN STATUS (ENTITY)
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. For U.S. tax purposes (including section 1445), the owner of a disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity.
To inform Tower Hill Mines, Inc. (Transferee) that withholding of tax is not required upon the disposition of a U.S. real property interest by [insert name of transferor in the following blank] _________________________________ (Transferor), the undersigned [insert name of authorized signatory in the following blank] _________________________________ hereby certifies the following on behalf of Transferor:
1) |
Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations) for purposes of U.S. income taxation; | |
2) |
Transferor is not a disregarded entity as defined in § 1.1445-2(b)(2)(iii); | |
3) |
Transferors U.S. Employer Identification Number is _________________________; and | |
4) |
Transferors office address is _________________________________________________________________. | |
Transferor understands that this affidavit may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.
Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Transferor.
Date:_______________ | By:___________________________ |
[authorized signatory] |
VIII-2
AFFIDAVIT OF NON-FOREIGN STATUS (INDIVIDUAL)
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.
To inform Tower Hill Mines, Inc. (Transferee) that withholding of tax is not required upon my disposition of a U.S. real property interest, I hereby certify the following:
1) |
I am not a nonresident alien (as defined in the Internal Revenue Code and Income Tax Regulations) for purposes of U.S. income taxation; | |
2) |
My U.S. Social Security Number is ___________________________________; and | |
3) |
My home address is __________________________________________________________________________. | |
I understands that this affidavit may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.
Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete.
Date:_______________ | |
Printed name: _________________________ |
VIII-3
LEASE AMENDMENT, OPTION EXERCISE, AND |
PURCHASE AND SALE AGREEMENT |
by and among |
KARL HANNEMAN, |
a married individual dealing in his separate property, |
and |
VMC REVOCABLE TRUST, |
the trustee of which is [Redacted - Trustee Name], |
and |
TOWER HILL MINES, INC. |
(formerly known as Talon Gold Alaska, Inc.), |
an Alaska corporation |
Dated as of December 13, 2011 |
TABLE OF CONTENTS
-i-
-ii-
EXHIBITS AND SCHEDULES
Exhibit A | Claims |
Exhibit B | Special Warranty Deed and Bill of Sale |
Exhibit C | FIRPTA Certificate |
Attachment 1 | Payment Instructions |
-iii-
LEASE AMENDMENT, OPTION EXERCISE, AND
PURCHASE AND SALE
AGREEMENT
THIS LEASE AMENDMENT, OPTION EXERCISE AND PURCHASE AND SALE AGREEMENT (this Agreement), is effective as of December 13 , 2011 (the Effective Date), by and among KARL HANNEMAN, a married individual dealing in his separate property (Hanneman); VMC REVOCABLE TRUST, the trustee of which is [Redacted - Trustee Name] (said trust and trustee are referred to herein as [Redacted - Seller Name]) (Hanneman and [Redacted - Seller Name] are referred to herein as Sellers), and TOWER HILL MINES, INC. (formerly known as Talon Gold Alaska, Inc.), an Alaska corporation (Buyer).
RECITALS
A. |
Sellers own certain rights in those state mining claims described in Exhibit A attached hereto and made a part hereof, together with any and all rights appurtenant thereto (including but not limited to access rights and water rights) (said claims, together with any and all rights appurtenant thereto, are referred to hereinafter as the Claims). |
B. |
Sellers own or hold certain Information (as defined in Article 1) (the Personal Property). |
C. |
Sellers and Buyer entered into that certain Mining Lease with Option to Purchase, dated September 1, 2006 (the Lease) pursuant to which Sellers granted to Buyer the exclusive lease of Sellers entire undivided interest in the Claims for a term of 10 years with an option to purchase the Claims during the term. Sellers and Buyers amended the Lease on October 1, 2010 by that certain Amendment to Mining Lease with Option to Purchase (Lease Amendment). |
D. |
By this Agreement, (i) Buyer desires to exercise its option to purchase the Claims pursuant to Section 2.4 of the Lease, and Sellers and Buyer desire to amend Section 2.4 of the Lease; and (ii) Sellers and Buyer desire to set forth the terms and conditions of the purchase and sale of the Claims and the Personal Property. |
AGREEMENT
NOW, THEREFORE, for good and valuable consideration set forth herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1 Defined terms. Unless otherwise defined, defined terms used herein have the following meanings:
Affiliate means, with respect to any Party, any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with said Party. For the purpose of this definition, control, when used with respect to any specified Person, means the possession of the power to direct the management or policies of the specified Person, directly or indirectly, whether through the ownership of voting securities, membership interests, or partnership interests, by contract, or otherwise.
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Business Day means any day except Saturday, Sunday and any other day on which banking institutions located in Fairbanks, Alaska, are required or authorized to close.
Information means all of the soil samples, rock samples, drill chips, drill core, maps, analyses, assays, deeds, title documents, or title reports, opinions or memoranda and any other geological, geochemical, geophysical, or title data, files, and records (whether in written, tabular, electronic, photographic, or other form and wherever situated) relating to the Claims or the lands included therein.
Party means Hanneman or [Redacted - Seller Name] or Sellers or Buyer, as the context requires, and Parties means, collectively, Sellers and Buyer.
Person means an individual, corporation, limited liability company, partnership, joint venture, bank, trust, unincorporated organization, government or any department or agency thereof, or any other form of entity or enterprise.
Personal Property means the Information.
Special Warranty Deed and Bill of Sale means a Special Warranty Deed and Bill of Sale in the form of Exhibit B, to be executed and acknowledged by Sellers and Buyer, and delivered by Sellers to Buyer, pursuant to Section 8.2(a) and countersigned by Buyer pursuant to Section 8.2(b) .
Section 1.2 Construction. As used in this Agreement, (a) the words hereof, herein, and hereunder and derivative or similar words shall refer to this entire Agreement and not to any particular provision of this Agreement; (b) the terms Article or Section refer to the specified Article or Section of this Agreement; (c) the terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa; (d) the terms dollars and $ shall mean United States dollars; and (e) unless otherwise specified, all references in this Agreement to times of the day shall be to the time in Fairbanks, Alaska (the place of Closing (as defined in Section 8.1) . No provision of this Agreement will be interpreted in favor of, or against, any Party by reason of the extent to which any such Party or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof.
ARTICLE II
OPTION EXERCISE AND LEASE AMENDMENT
Section 2.1 Option Exercise and Lease Amendment. By executing this Agreement, Buyer hereby exercises its option to purchase all of Sellers right, title and interest in, under, to, and respecting the Claims pursuant to Section 2.4(a) of the Lease. The other terms and conditions of said Section 2.4(a) relating to the purchase price and payment terms for the Claims are hereby deleted and, notwithstanding any of the terms of said Section 2.4 or any other Section or provision of the Lease, the sale and purchase of the Claims hereafter shall be governed by this Agreement.
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Section 2.2 Termination of Lease. Upon the Closing, as defined in Section 8.1 of this Agreement, the Lease, as amended, and all rights and obligations provided for therein, including the Production Royalty under Section 2.2, shall terminate, provided however that the confidentiality obligations of Sellers under Section 5.3 of the Lease and Section 1 of the Lease Amendment shall remain in effect and survive the Closing.
ARTICLE III
SALE AND PURCHASE OF LANDS AND PERSONAL
PROPERTY
Section 3.1 Sale and Purchase of Claims. Subject to the terms and conditions of this Agreement, Sellers shall sell, convey, transfer, and deliver to Buyer, and Buyer shall purchase from Sellers, all of Sellers right, title and interest (if any) in, under, to, and respecting the Claims, AS IS, with no warranties other than as set forth in the Special Warranty Deed and Bill of Sale and in their present conditions and states (from place to place) of exploration, development, production, reclamation, and restoration.
Section 3.2 Sale and Purchase of Personal Property. Subject to the terms and conditions of this Agreement, Sellers shall sell, transfer, and deliver to Buyer, and Buyer shall purchase from Sellers, all of Sellers right, title and interest (if any) in, to, and respecting the Personal Property, AS IS, with no warranties other than as set forth in the Special Warranty Deed and Bill of Sale.
Section 3.3 Purchase Price. The aggregate purchase price to be paid to Sellers for the Claims and Personal Property is $11,044,000 (the Purchase Price). At Closing, Buyers shall make a payment to Sellers in the amount of the Purchase Price by wire transfer. Buyer shall pay 50% of the Purchase Price to each of Hanneman and [Redacted - Seller Name] to the account of each as specified on Attachment 1.
Section 3.4 Liabilities. Upon completion of Closing, (a) Sellers shall be deemed to have released Buyer and its Affiliates from any and all claims or demands of, or damages or liabilities to, any or all Sellers, or any predecessor or Affiliate thereof, arising out of or resulting from any breach by Buyer of any obligation or obligations of Buyer arising under or relating to the Lease, and (b) Buyer shall be deemed to have assumed any and all liabilities of Sellers or either of them relating in any way to the Claims, to the lands included therein, or to the Personal Property (Assumed Liabilities).
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF SELLERS
Sellers collectively and Hanneman and [Redacted - Seller Name] individually represent and warrant to Buyer as of the Effective Date and as of the Closing as follows:
Section 4.1 Organization. The VMC Revocable Trust is a duly formed and validly existing revocable trust, formed and in good standing under the laws of the State of Alaska.
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Section 4.2 Capacity, Power, and Authority. Each of Hanneman and [Redacted -Seller Name] has full capacity and power to execute, deliver, and carry out the terms and provisions of this Agreement. All actions necessary to authorize the execution, delivery, and performance of this Agreement and the Special Warranty Deed and Bill of Sale by each of Hanneman and [Redacted - Seller Name] have been taken or have occurred and Sellers have duly executed and delivered this Agreement. Hanneman hereby represents and warrants that his ownership interest in the Claims and Personal Property is separate property under Alaska law and is not his familys family house or homestead under AS 34.15.010.
Section 4.3 No Conflict. The execution, delivery, and performance of this Agreement and the Special Warranty Deed and Bill of Sale by Sellers will not (i) contravene any applicable provision of any law, statute, rule, or regulation or any order, writ, injunction, or decree of any court or governmental instrumentality; (ii) conflict with or result in any breach of any agreement to which either Hanneman or [Redacted - Seller Name] is a party; or (iii) breach or violate any provision of [Redacted - Seller Name]s organizational documents.
Section 4.4 Governmental Approvals. No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery, and performance by Sellers of this Agreement, other than those that have been duly obtained or made and are in full force and effect.
Section 4.5 Enforceability. This Agreement and the Special Warranty Deed and Bill of Sale shall constitute valid and binding obligations of Sellers enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, and other laws affecting creditors rights generally and general principles of equity.
Section 4.6 Title to Claims and Personal Property. Other than as set forth in the Special Warranty Deed and Bill of Sale, Sellers make no representations or warranties respecting title to or condition of the Claims or the Personal Property, provided however, that the Sellers do hereby represent that as of the date hereof and as of the date of Closing, the Sellers are unaware of any defect in their ownership to the Claims or of any challenges by third-parties to their ownership of the Claims which has not been disclosed to the Buyer. For purposes of this Section 4.6, neither the term "defect in their ownership" nor the term "challenge to their ownership" includes any of the following:
(i) |
any defect or challenge described in any status report, title report, or similar analysis of any of the Claims prepared for International Tower Hill Mines Ltd. or Buyer by [Redacted - Seller Name]; or | ||
(ii) |
any defect or challenge arising out of any of the following issues or uncertainties, all representations with respect to which were disclaimed by Sellers in Section 4.2(c) of the Lease: | ||
(a) |
whether any lands included in any claim constituting part of the Claims had been selected by the state, had been tentatively approved or patented to the state, or were available for location of state mining claims at the time of location; |
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(b) |
whether a discovery exists on any claim constituting part of the Claims; | |
(c) |
whether any claim constituting part of the Claims is junior or otherwise subject to any interest in real property held by a third party; and | |
(d) |
whether any claim constituting part of the Claims is in good standing. |
Section 4.7 Brokers. No broker, investment banker, financial advisor, or other Person is entitled to any brokers, finders, financial advisors, or other similar fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Sellers or either of them.
Section 4.8 No Dispute. The Sellers, any beneficiary of Seller or persons or entities associated with Seller hereby agree not to dispute or challenge, directly or indirectly, the validity or good standing of any of the Claims and hereby agree not to cause or aid any other person to dispute or challenge the validity or good standing of any of the Claims. The Sellers hereby agree to use commercially reasonable efforts to assist the Buyer in defending title to the Claims against any and all defects in or challenges to the validity or good standing of all or any portion of the Claims as may be requested by the Buyer, provided however, that Buyer shall cover the reasonable expenses of the Sellers in relation to such assistance requested by the Buyer so long as such expenses over $1,000 are pre-approved by the Buyer.
Section 4.9 Permit Processes. Neither Sellers nor any beneficiary of Sellers or persons or entities associated with Sellers shall object to or take an adverse position with respect to any amendment, relocation, or conversion of any or all of the Claims; any partial or total inclusion of the lands within the Claims in any upland mining lease issued by the Division of Mining, Land & Water Management or any millsite lease issued by the Division of Mining, Land & Water Management; any partial or total inclusion of the lands within the Claims in any upland mining lease issued by the Mental Health Trust Land Office or any millsite lease issued by the Mental Health Trust Land Office; any application or request for any grant, permit, authorization, approval, consent, non-objection, or other action by any federal, state, or local government or governmental agency, or any third party landowner, in connection with mineral exploration, development, or mining on, in, or under any of the lands included in the Claims, or any adjoining lands, that is initiated or pursued by Buyer or any Affiliate of Buyer (Permit Activities). Sellers shall use their commercially reasonable efforts to cooperate with Purchaser in its Permit Activities, provided however, that Buyer shall cover the reasonable expenses of the Sellers in relation to such assistance requested by the Buyer so long as such expenses are pre-approved by the Buyer.
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF BUYER
Buyer represents and warrants to Sellers as of the Effective Date and the Closing as follows:
Section 5.1 Organization. Buyer is a duly organized and validly existing corporation organized and in good standing under the laws of the State of Alaska.
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Section 5.2 Power and Authority. Buyer has the corporate power and authority (i) to own and operate the Claims now and in the future, (ii) to execute and deliver this Agreement and the Special Warranty Deed and Bill of Sale, and (iii) to perform its obligations under this Agreement. All actions necessary to authorize the execution, delivery, and performance of this Agreement and the Special Warranty Deed and Bill of Sale by Buyer have been taken or have occurred; and Buyer has duly executed and delivered this Agreement and the Special Warranty Deed and Bill of Sale.
Section 5.3 No Conflict. The execution, delivery, and performance of this Agreement and the Special Warranty Deed and Bill of Sale by Buyer will not (i) contravene any applicable provision of any law, statute, rule, or regulation or any order, writ, injunction or decree of any court or governmental instrumentality; (ii) conflict with or result in any breach of any agreement to which Buyer is a party; or (iii) breach or violate any provision of Buyers organizational documents.
Section 5.4 Government Approvals. No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery, and performance by Buyer of this Agreement, other than those that have been duly obtained or made and are in full force and effect.
Section 5.5 Enforceability. This Agreement and the Special Warranty Deed and Bill of Sale shall constitute valid and binding obligations of Buyer enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, and other laws affecting creditors rights generally and general principles of equity.
Section 5.6 Availability of Funds. Buyer has or will have at the Closing adequate funds to make the payment due to Sellers under Section 8.2(b) .
Section 5.7 Brokers and Advisors. No broker, investment banker, financial advisor, or other Person is entitled to any brokers, finders, financial advisors, or other similar fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer.
ARTICLE VI
CERTAIN COVENANTS OF THE PARTIES
Section 6.1 Certain Obligations of the Parties Following Closing. From time to time after the Effective Date, each Party shall execute and deliver such certificates, agreements, conveyances, assignments, and other documents and take such other actions as may reasonably be requested by the other Party in order to consummate or implement the transactions contemplated by this Agreement. Each Party shall bear its own costs and expenses incurred in connection with its obligations pursuant to this Section 6.1.
ARTICLE VII
CONDITIONS PRECEDENT TO CLOSING
Section 7.1 Closing Conditions. The respective obligations set forth herein of Sellers and Buyer to consummate the transactions contemplated hereby shall be subject to the fulfillment, on or before the Closing (as defined below), of the conditions set forth in Section 7.2 (in the case of the obligations of Buyer) and Section 7.3 (in the case of the obligations of Sellers). Any of the following conditions may be waived in whole or in part by the Party whose obligation to perform at Closing is subject to such condition.
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Section 7.2 Conditions to Obligations of Buyer. The representations and warranties of Sellers contained in Article IV shall be accurate in all respects as of the date hereof and as of the Closing. Sellers shall have duly performed and complied in all material respects with all covenants contained herein that are required to be performed or complied with by them at or before the Closing. Sellers shall have taken the actions required to be taken by Sellers at the Closing pursuant to Section 8.2(a) .
Section 7.3 Conditions to Obligations of Sellers. The representations and warranties of Buyer contained in Article V shall be accurate in all respects as of the date hereof and as of the Closing. Buyer shall have duly performed and complied in all material respects with all covenants contained herein that are required to be performed or complied with by it at or before the Closing. Buyer shall have taken the actions required to be taken by Buyer at the Closing pursuant to Section 8.2(b) .
ARTICLE VIII
CLOSING
Section 8.1 Closing. The sale and purchase of the Claims and Personal Property shall be completed (the Closing) on December 13, 2011, or such other date as Sellers and Buyer may mutually agree in writing, at 10:00 a.m. at the offices of Yukon Title Inc., 714 Gaffney Road, Fairbanks, Alaska 99701. Hanneman, [Redacted - Seller Name], and an authorized representative of Buyer shall be present at the Closing as specified in this Section 8.1.
Section 8.2 Closing Deliveries. At the Closing, the events described below shall occur, each of which shall be deemed to have occurred simultaneously with the other events:
(a) |
Closing Deliveries by Sellers. At the Closing, Sellers shall deliver or cause to be delivered, to Buyer the following: | ||
(i) |
a duly executed Special Warranty Deed and Bill of Sale in the form of Exhibit B for recording in the Fairbanks Recording District, conveying and transferring the Claims and Personal Property to Buyer; and | ||
(ii) |
duly executed affidavits from Hanneman and [Redacted - Seller Name] of non-foreign status and no requirement for withholding under Section 1445 of the Internal Revenue Code in the form attached hereto as Exhibit C. | ||
(b) |
Closing Deliveries by Buyer. At the Closing, Buyer shall deliver or pay, or cause to be delivered or paid, to Sellers the following: | ||
(iii) |
$11,044,000 in immediately available funds, paid in the manner specified in Section 3.3; and |
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(iv) |
a countersigned Special Warranty Deed and Bill of Sale in the form of Exhibit B. |
ARTICLE IX
INDEMNIFICATION; DISCLAIMER; CONFIDENTIALITY
Section 9.1 Indemnification. Buyer agrees to indemnify, defend, and hold harmless each of Hanneman and [Redacted - Seller Name], together with any and all of eithers Affiliates, agents, representatives, heirs, successors, and assigns from and against any and all claims, demands, losses, damages, liabilities, and expenses of whatsoever character, direct or indirect, of third parties (collectively Third Party Claims), arising out of or in any way relating to the Claims or the Personal Property or the ownership of, operation of, or conduct of activities upon or respecting the Claims or the Personal Property insofar and only insofar as such Third Party Claims do not arise from or relate to, directly or indirectly, the intentional misconduct or illegal actions of the Sellers.
Section 9.2 Disclaimer. Except as otherwise expressly provided in this Agreement, BUYER ACKNOWLEDGES THAT SELLERS HAVE NOT MADE, AND SELLERS HEREBY EXPRESSLY DISCLAIM AND NEGATE, ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, RELATING TO THE TITLE TO OR THE NATURE, CONDITION, OR SUITABILITY OF ANY OF THE CLAIMS OR THE LANDS INCLUDED THEREIN OR ANY OF THE PERSONAL PROPERTY FOR ANY PURPOSE, INCLUDING BUT NOT LIMITED TO:
(a) |
ANY EXPRESS OR IMPLIED WARRANTY RESPECTING THE CHARACTER, CONDITION, OR QUALITY OF ANY OF THE CLAIMS OR THE LANDS INCLUDED THEREIN OR THE QUANTITY OR QUALITY OF ANY MINERALS OR MINERAL PRODUCTS THAT MIGHT BE FOUND THEREON, THEREIN, OR THEREUNDER OR THAT MIGHT BE EXTRACTED THEREFROM; | |
(b) |
ANY EXPRESS OR IMPLIED WARRANTY RESPECTING THE EXISTENCE, SIZE, OR PROFITABILITYNOW OR IN THE FUTUREOF ANY INTERNATIONAL, NATIONAL, OR REGIONAL WHOLESALE OR RETAIL MARKET FOR ANY MINERALS OR MINERAL PRODUCTS THAT MIGHT BE FOUND ON, IN, OR UNDER THE LANDS OR THAT MIGHT BE EXTRACTED THEREFROM; | |
(c) |
ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY; | |
(d) |
ANY EXPRESS OR IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; | |
(e) |
ANY EXPRESS OR IMPLIED WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS; | |
(f) |
ANY EXPRESS OR IMPLIED WARRANTY OF FREEDOM FROM DEFECTS, WHETHER KNOWN OR UNKNOWN; AND |
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(g) |
ANY AND ALL IMPLIED WARRANTIES EXISTING UNDER APPLICABLE LAW NOW OR HEREAFTER IN EFFECT |
IT BEING THE EXPRESS INTENTION OF SELLERS AND BUYER THAT THE CLAIMS AND THE PERSONAL PROPERTY SHALL BE CONVEYED, TRANSFERRED, AND ASSIGNED TO BUYER AS IS AND WHERE IS AND IN THEIR PRESENT CONDITIONS AND STATES (FROM PLACE TO PLACE) OF EXPLORATION, DEVELOPMENT, PRODUCTION, RECLAMATION, AND RESTORATION, AND BUYER REPRESENTS TO SELLERS THAT BUYER HAS MADE OR CAUSED TO BE MADE SUCH INSPECTIONS, INVESTIGATIONS, INQUIRIES, AND ANALYSES OF OR WITH RESPECT TO THE CLAIMS, THE LANDS INCLUDED THEREIN, AND THE PERSONAL PROPERTY AS BUYER DEEMS APPROPRIATE, AND BUYER WILL ACCEPT SUCH ASSETS AS IS AND WHERE IS AND IN THEIR PRESENT CONDITIONS AND STATES (FROM PLACE TO PLACE) OF EXPLORATION, DEVELOPMENT, PRODUCTION, RECLAMATION, AND RESTORATION.
Section 9.3 Confidentiality. Except where required by law, a regulatory body, or the rules of any stock exchange, none of the terms or provisions of this Agreement shall be disclosed by any Party to any third party other than a Partys or an Affiliates owners, directors, officers, employees, insurance companies, legal counsel, accountants, consultants, financiers, prospective and actual investors and/or shareholders, and similar third parties who need to know the same. The foregoing restrictions shall not prevent the recording in the Fairbanks Recording District of the Special Warranty Deed and Bill of Sale or any Financing Statement authorized to be recorded under the Security Agreement.
ARTICLE X
SURVIVAL OF AGREEMENT
Section 10.1 Survival. This Agreement shall survive the Closing and shall continue as the agreement of the Parties for so long as either Party has any obligation or liabilities hereunder to the other Party.
ARTICLE XI
MISCELLANEOUS
Section 11.1 Entire Agreement. This Agreement supersedes any and all other agreements, oral or written, among the Parties in respect of the subject matter of this Agreement.
Section 11.2 Modification. This Agreement may be modified, amended, or supplemented in any manner and at any time only by a written instrument executed by Buyer and Sellers.
Section 11.3 Unenforceability of Provisions. If any one or more of the provisions contained herein should be held to be invalid, unenforceable or illegal in any respect in any jurisdiction, the validity, legality and enforceability of such provision shall not in any way be affected or impaired thereby in any other jurisdiction and the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.
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Section 11.4 Extension and Waiver. The Parties may, to the extent legally allowed, (i) extend the time for the performance of any of the obligations or other acts of the other Party; (ii) waive any inaccuracies by the other Party in the representations and warranties contained herein or in any document delivered pursuant hereto; and (iii) waive compliance by the other Party with any of the agreements or conditions contained herein. Any agreement on the part of a Party to any such extension or waiver shall be valid only if set forth in a written instrument signed by the Party or Parties to be bound thereby, but such extension, waiver, or failure to insist on strict compliance with an obligation, covenant, agreement, or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. The failure of any Party to assert any of its rights hereunder shall not constitute a waiver of such rights.
Section 11.5 Time of Essence. Time shall be of the essence of this Agreement.
Section 11.6 Specific Performance. The Parties acknowledge that any breach of the terms of this Agreement by Sellers would give rise to irreparable harm to Buyer for which money damages would not be an adequate remedy and accordingly the Parties agree that, in addition to any other remedies permitted under this Agreement, Buyer shall be entitled to enforce the terms of this Agreement by a decree of specific performance without the necessity of proving the inadequacy of money damages as a remedy.
Section 11.7 Further Actions. From time to time after the Closing, each Party shall execute and deliver such other certificates, agreements, conveyances, assignments, and other documents and take such other actions as may reasonably be requested by the other Party in order to consummate or implement the transactions contemplated by this Agreement.
Section 11.8 No Third-Party Beneficiaries. Nothing in this Agreement shall provide any benefit to any third party or entitle any third party to any claim, cause of action, remedy, or right of any kind, it being the intent of the Parties that this Agreement shall not be construed as a third-party beneficiary contract.
Section 11.9 Notices. Any and all notices or other communications required or permitted under this Agreement shall be given in writing and delivered in person or sent by United States certified mail, postage prepaid, return receipt requested; by Express Mail; by FedEx; or by facsimile transmission to the address of such Party set forth below:
If to Sellers: | Karl Hanneman and | ||
[Redacted - Trustee Name], Trustee of VMC Revocable | |||
Trust | |||
[Redacted - Address] | |||
Telephone: | [Redacted - Telephone] | ||
Facsimile: | [Redacted - Facsimile] |
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If to Buyer: | Tower Hill Mines, Inc. | ||
Attention: James J. Komadina | |||
506 Gaffney Road, Ste 200 | |||
Fairbanks, Alaska 99701 | |||
Telephone: | 720-881-7646 | ||
Email: jkomadina@ithmines.com |
Any such notice shall be effective upon the day of receipt or, if faxed, on the next Business Day. Any Party may, by notice so delivered, change its address for notice purposes hereunder.
Section 11.10 Transfer. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. Prior to completion of the Closing, neither this Agreement nor any of the rights, interests, or obligations hereunder shall be transferred or assigned, by operation of law or otherwise, by any Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld. After completion of the Closing, Buyer may transfer from time to time its interest in the Claims or Personal Property or any portion thereof, subject to the provisions of the Operative Documents.
Section 11.11 Counterparts. This Agreement may be executed in multiple counterparts, including electronic or facsimiles thereof, all of which shall constitute one and the same instrument.
Section 11.12 Applicable Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Alaska without giving effect to any choice or conflict of law provision or rule (whether of the State of Alaska or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Alaska.
[Signature Page Follows]
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first above written.
SELLERS:
(signed) Karl Hanneman | |||
KARL HANNEMAN | |||
VMC REVOCABLE TRUST | |||
By: (signed) [Redacted - Trustee Name] | |||
Name: | [Redacted - Trustee Name] | ||
Title: | Trustee |
BUYER:
TOWER HILL MINES, INC. | |||
By: (signed) Jim Komadina | |||
Name: | Jim Komadina | ||
Title: | Chief Executive Officer |
[Signature Page to Lease Amendment, Option Exercise and Purchase & Sale Agreement]
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EXHIBIT A
Claims
The following state mining claims situated within the following sections, all of which are situated in the Fairbanks Recording District, State of Alaska:
T. 8 North, R. 5 West, F.M.: | Secs. 11, 12, 13, 14, 15, 16, 21, 22, 27, and 28 |
T. 8 North, R. 4 West, F.M.: | Secs. 4, 5, 6, 7, 8, 9, 16, 17, and 18 |
T. 9 North, R. 4 West, F.M.: | Secs. 32 and 33 |
Claim Name |
Date of Posting1 |
DNR Record Owner |
DNR (ADL) Serial Number |
Acres2 |
DNR Status3 |
LUCKY 55 | 14-May-1981 | Karl Hanneman4 | 330936 | 40 | Active |
LUCKY 56 | 14-May-1981 | [same as above] | 330937 | 40 | Active |
LUCKY 64 | 13-May-1981 | [same as above] | 330938 | 40 | Active |
LUCKY 65 | 14-May-1981 | [same as above] | 330939 | 40 | Active |
LUCKY 66 | 14-May-1981 | [same as above] | 330940 | 40 | Active |
LUCKY 72 | 12-May-1981 | [same as above] | 330941 | 40 | Active |
LUCKY 73 | 13-May-1981 | [same as above] | 330942 | 40 | Active |
LUCKY 74 | 13-May-1981 | [same as above] | 330943 | 40 | Active |
LUCKY 75 | 14-May-1981 | [same as above] | 330944 | 40 | Active |
LUCKY 76 | 14-May-1981 | [same as above] | 330945 | 40 | Active |
LUCKY 82 | 12-May-1981 | [same as above] | 330946 | 40 | Active |
LUCKY 83 | 13-May-1981 | [same as above] | 330947 | 40 | Active |
LUCKY 84 | 13-May-1981 | [same as above] | 330948 | 40 | Active |
LUCKY 85 | 14-May-1981 | [same as above] | 330949 | 40 | Active |
LUCKY 86 | 14-May-1981 | [same as above] | 330950 | 40 | Active |
LUCKY 91 | 12-May-1981 | [same as above] | 330951 | 40 | Active |
LUCKY 92 | 12-May-1981 | [same as above] | 330952 | 40 | Active |
LUCKY 93 | 13-May-1981 | [same as above] | 330953 | 40 | Active |
LUCKY 94 | 13-May-1981 | [same as above] | 330954 | 40 | Active |
LUCKY 95 | 14-May-1981 | [same as above] | 330955 | 40 | Active |
LUCKY 96 | 14-May-1981 | [same as above] | 330956 | 40 | Active |
LUCKY 101 | 12-May-1981 | [same as above] | 330957 | 40 | Active |
LUCKY 102 | 12-May-1981 | [same as above] | 330958 | 40 | Active |
LUCKY 103 | 12-May-1981 | [same as above] | 330959 | 40 | Active |
LUCKY 104 | 12-May-1981 | [same as above] | 330960 | 40 | Active |
LUCKY 105 | 12-May-1981 | [same as above] | 330961 | 40 | Active |
LUCKY 106 | 12-May-1981 | [same as above] | 330962 | 40 | Active |
LUCKY 202 | 12-May-1981 | [same as above] | 330963 | 40 | Active |
LUCKY 203 | 13-May-1981 | [same as above] | 330964 | 40 | Active |
LUCKY 204 | 15-May-1981 | [same as above] | 330965 | 40 | Active |
LUCKY 205 | 13-May-1981 | [same as above] | 330966 | 40 | Active |
LUCKY 206 | 14-May-1981 | [same as above] | 330967 | 40 | Active |
EXHIBIT APage 1
Claim Name |
Date of Posting1 |
DNR Record Owner |
DNR (ADL) Serial Number |
Acres2 |
DNR Status3 |
LUCKY 207 | 14-May-1981 | [same as above] | 330968 | 40 | Active |
LUCKY 208 | 14-May-1981 | [same as above] | 330969 | 40 | Active |
LUCKY 302 | 13-May-1981 | [same as above] | 330970 | 40 | Active |
LUCKY 303 | 13-May-1981 | [same as above] | 330971 | 40 | Active |
LUCKY 304 | 15-May-1981 | [same as above] | 330972 | 40 | Active |
LUCKY 305 | 13-May-1981 | [same as above] | 330973 | 40 | Active |
LUCKY 306 | 14-May-1981 | [same as above] | 330974 | 40 | Active |
LUCKY 307 | 14-May-1981 | [same as above] | 330975 | 40 | Active |
LUCKY 308 | 14-May-1981 | [same as above] | 330976 | 40 | Active |
LUCKY 404 | 15-May-1981 | [same as above] | 330977 | 40 | Active |
LUCKY 405 | 13-May-1981 | [same as above] | 330978 | 40 | Active |
LUCKY 406 | 14-May-1981 | [same as above] | 330979 | 40 | Active |
LUCKY 198 | 17-Sep-1981 | [same as above] | 338477 | 40 | Active |
LUCKY 199 | 17-Sep-1981 | [same as above] | 338478 | 40 | Active |
LUCKY 295 | 17-Sep-1981 | [same as above] | 338479 | 40 | Active |
LUCKY 296 | 17-Sep-1981 | [same as above] | 338480 | 40 | Active |
LUCKY 297 | 17-Sep-1981 | [same as above] | 338481 | 40 | Active |
LUCKY 298 | 17-Sep-1981 | [same as above] | 338482 | 40 | Active |
LUCKY 299 | 17-Sep-1981 | [same as above] | 338483 | 40 | Active |
LUCKY 392 | 21-Sep-1981 | [same as above] | 338484 | 40 | Active |
LUCKY 395 | 18-Sep-1981 | [same as above] | 338485 | 40 | Active |
LUCKY 396 | 18-Sep-1981 | [same as above] | 338486 | 40 | Active |
LUCKY 397 | 18-Sep-1981 | [same as above] | 338487 | 40 | Active |
LUCKY 398 | 18-Sep-1981 | [same as above] | 338488 | 40 | Active |
LUCKY 399 | 17-Sep-1981 | [same as above] | 338489 | 40 | Active |
LUCKY 400 | 23-Sep-1981 | [same as above] | 338490 | 40 | Active |
LUCKY 491 | 21-Sep-1981 | [same as above] | 338491 | 40 | Active |
LUCKY 492 | 21-Sep-1981 | [same as above] | 338492 | 40 | Active |
LUCKY 493 | 21-Sep-1981 | [same as above] | 338493 | 40 | Active |
LUCKY 494 | 21-Sep-1981 | [same as above] | 338494 | 40 | Active |
LUCKY 495 | 18-Sep-1981 | [same as above] | 338495 | 40 | Active |
LUCKY 496 | 18-Sep-1981 | [same as above] | 338496 | 40 | Active |
LUCKY 497 | 18-Sep-1981 | [same as above] | 338497 | 40 | Active |
LUCKY 498 | 18-Sep-1981 | [same as above] | 338498 | 40 | Active |
LUCKY 499 | 17-Sep-1981 | [same as above] | 338499 | 40 | Active |
LUCKY 500 | 23-Sep-1981 | [same as above] | 338500 | 40 | Active |
LUCKY 504 | 10-Sep-1981 | [same as above] | 338501 | 40 | Active |
LUCKY 505 | 10-Sep-1981 | [same as above] | 338502 | 40 | Active |
LUCKY 589 | 21-Sep-1981 | [same as above] | 338503 | 402 | Active |
LUCKY 590 | 21-Sep-1981 | [same as above] | 338504 | 40 | Active |
LUCKY 591 | 21-Sep-1981 | [same as above] | 338505 | 40 | Active |
LUCKY 592 | 21-Sep-1981 | [same as above] | 338506 | 40 | Active |
LUCKY 593 | 21-Sep-1981 | [same as above] | 338507 | 40 | Active |
LUCKY 594 | 21-Sep-1981 | [same as above] | 338508 | 40 | Active |
EXHIBIT APage 2
Claim Name |
Date of Posting1 |
DNR Record Owner |
DNR (ADL) Serial Number |
Acres2 |
DNR Status3 |
LUCKY 595 | 18-Sep-1981 | [same as above] | 338509 | 40 | Active |
LUCKY 596 | 18-Sep-1981 | [same as above] | 338510 | 40 | Active |
LUCKY 597 | 18-Sep-1981 | [same as above] | 338511 | 40 | Active |
LUCKY 598 | 18-Sep-1981 | [same as above] | 338512 | 40 | Active |
LUCKY 599 | 17-Sep-1981 | [same as above] | 338513 | 40 | Active |
LUCKY 689 | 22-Sep-1981 | [same as above] | 338514 | 402 | Active |
LUCKY 690 | 22-Sep-1981 | [same as above] | 338515 | 40 | Active |
LUCKY 691 | 22-Sep-1981 | [same as above] | 338516 | 40 | Active |
LUCKY 692 | 22-Sep-1981 | [same as above] | 338517 | 40 | Active |
LUCKY 693 | 22-Sep-1981 | [same as above] | 338518 | 40 | Active |
LUCKY 694 | 22-Sep-1981 | [same as above] | 338519 | 40 | Active |
LUCKY 697 | 18-Sep-1981 | [same as above] | 338520 | 40 | Active |
LUCKY 698 | 18-Sep-1981 | [same as above] | 338521 | 40 | Active |
LUCKY 699 | 17-Sep-1981 | [same as above] | 338522 | 40 | Active |
LC 407 | 7-Jun-1982 | [same as above] | 347943 | 40 | Active |
LC 408 | 7-Jun-1982 | [same as above] | 347944 | 40 | Active |
LC 502 | 5-Jun-1982 | [same as above] | 347945 | 40 | Active |
LC 503 | 5-Jun-1982 | [same as above] | 347946 | 40 | Active |
LC 506 | 7-Jun-1982 | [same as above] | 347947 | 40 | Active |
LC 507 | 7-Jun-1982 | [same as above] | 347948 | 40 | Active |
LC 600 | 5-Jun-1982 | [same as above] | 347949 | 40 | Active |
LC 601 | 5-Jun-1982 | [same as above] | 347950 | 40 | Active |
LC 602 | 5-Jun-1982 | [same as above] | 347951 | 40 | Active |
LC 603 | 5-Jun-1982 | [same as above] | 347952 | 402 | Active |
LC 604 | 6-Jun-1982 | [same as above] | 347953 | 40 | Active |
LC 605 | 6-Jun-1982 | [same as above] | 347954 | 40 | Active |
LC 695 | 10-Jun-1982 | [same as above] | 347955 | 40 | Active |
LC 696 | 10-Jun-1982 | [same as above] | 347956 | 40 | Active |
LC 700 | 6-Jun-1982 | [same as above] | 347957 | 40 | Active |
LC 701 | 6-Jun-1982 | [same as above] | 347958 | 40 | Active |
LC 702 | 6-Jun-1982 | [same as above] | 347959 | 40 | Active |
LC 703 | 6-Jun-1982 | [same as above] | 347960 | 402 | Active |
LC 704 | 6-Jun-1982 | [same as above] | 347961 | 40 | Active |
LC 790 | 12-Jun-1982 | [same as above] | 347962 | 40 | Active |
LC 791 | 12-Jun-1982 | [same as above] | 347963 | 40 | Active |
LC 792 | 11-Jun-1982 | [same as above] | 347964 | 40 | Active |
LC 793 | 11-Jun-1982 | [same as above] | 347965 | 40 | Active |
LC 794 | 11-Jun-1982 | [same as above] | 347966 | 40 | Active |
LC 795 | 10-Jun-1982 | [same as above] | 347967 | 40 | Active |
LC 796 | 10-Jun-1982 | [same as above] | 347968 | 40 | Active |
LC 797 | 10-Jun-1982 | [same as above] | 347969 | 40 | Active |
LC 798 | 9-Jun-1982 | [same as above] | 347970 | 40 | Active |
LC 799 | 8-Jun-1982 | [same as above] | 347971 | 40 | Active |
LC 800 | 8-Jun-1982 | [same as above] | 347972 | 40 | Active |
EXHIBIT APage 3
Claim Name |
Date of Posting1 |
DNR Record Owner |
DNR (ADL) Serial Number |
Acres2 |
DNR Status3 |
LC 801 | 8-Jun-1982 | [same as above] | 347973 | 40 | Active |
LC 802 | 8-Jun-1982 | [same as above] | 347974 | 40 | Active |
LC 803 | 8-Jun-1982 | [same as above] | 347975 | 40 | Active |
LC 891 | 12-Jun-1982 | [same as above] | 347976 | 40 | Active |
LC 892 | 11-Jun-1982 | [same as above] | 347977 | 40 | Active |
LC 893 | 11-Jun-1982 | [same as above] | 347978 | 40 | Active |
LC 894 | 11-Jun-1982 | [same as above] | 347979 | 40 | Active |
LC 895 | 10-Jun-1982 | [same as above] | 347980 | 40 | Active |
LC 688 | 4-Jun-1982 | [same as above] | 348802 | 402 | Active |
LC 787 | 4-Jun-1982 | [same as above] | 348803 | 40 | Active |
LC 788 | 4-Jun-1982 | [same as above] | 348804 | 402 | Active |
LC 884 | 31-May-1982 | [same as above] | 348805 | 40 | Active |
LC 885 | 31-May-1982 | [same as above] | 348806 | 40 | Active |
LC 886 | 25-May-1982 | [same as above] | 348807 | 40 | Active |
LC 887 | 2-Jun-1982 | [same as above] | 348808 | 40 | Active |
LC 888 | 4-Jun-1982 | [same as above] | 348809 | 402 | Active |
LC 984 | 31-May-1982 | [same as above] | 348810 | 40 | Active |
LC 985 | 31-May-1982 | [same as above] | 348811 | 40 | Active |
LC 986 | 25-May-1982 | [same as above] | 348812 | 40 | Active |
LC 987 | 4-Jun-1982 | [same as above] | 348813 | 402 | Active |
LC 1083 | 30-May-1982 | [same as above] | 348814 | 40 | Active |
LC 1084 | 30-May-1982 | [same as above] | 348815 | 40 | Active |
LC 1085 | 30-May-1982 | [same as above] | 348816 | 40 | Active |
LC 1086 | 25-May-1982 | [same as above] | 348817 | 40 | Active |
LC 1183 | 29-May-1982 | [same as above] | 348818 | 40 | Active |
LC 1184 | 29-May-1982 | [same as above] | 348819 | 40 | Active |
LC 1185 | 29-May-1982 | [same as above] | 348820 | 40 | Active |
LC 1186 | 25-May-1982 | [same as above] | 348821 | 40 | Active |
LC 1282 | 28-May-1982 | [same as above] | 348822 | 40 | Active |
LC 1283 | 28-May-1982 | [same as above] | 348823 | 40 | Active |
LC 1284 | 28-May-1982 | [same as above] | 348824 | 40 | Active |
LC 1285 | 28-May-1982 | [same as above] | 348825 | 40 | Active |
LC 1286 | 26-May-1982 | [same as above] | 348826 | 40 | Active |
LC 1287 | 26-May-1982 | [same as above] | 348827 | 40 | Active |
LC 1288 | 2-Jun-1982 | [same as above] | 348828 | 402 | Active |
LC 1382 | 27-May-1982 | [same as above] | 348829 | 40 | Active |
LC 1383 | 27-May-1982 | [same as above] | 348830 | 40 | Active |
LC 1384 | 27-May-1982 | [same as above] | 348831 | 40 | Active |
LC 1385 | 27-May-1982 | [same as above] | 348832 | 40 | Active |
LUCKY 90 | 24-Oct-1983 | [same as above] | 361326 | 40 | Active |
LUCKY 100 | 24-Oct-1983 | [same as above] | 361327 | 40 | Active |
LUCKY 200 | 24-Oct-1983 | [same as above] | 361328 | 40 | Active |
EXHIBIT APage 4
Claim Name |
Date of Posting1 |
DNR Record Owner |
DNR (ADL) Serial Number |
Acres2 |
DNR Status3 |
LUCKY 294 | 28-Oct-1983 | [same as above] | 361329 | 40 | Active |
LUCKY 300 | 24-Oct-1983 | [same as above] | 361330 | 40 | Active |
LUCKY 394 | 28-Oct-1983 | [same as above] | 361331 | 40 | Active |
LUCKY 401 | 24-Oct-1983 | [same as above] | 361332 | 40 | Active |
LUCKY 402 | 24-Oct-1983 | [same as above] | 361333 | 40 | Active |
LUCKY 403 | 24-Oct-1983 | [same as above] | 361334 | 40 | Active |
LUCKY 501 | 24-Oct-1983 | [same as above] | 361335 | 40 | Active |
1 |
Information respecting the Date of Posting was obtained from the DNR case file abstract for each listed claim. The information in the abstract for each claim should have been obtained from the certificate of location for that claim. |
2 |
The noted size is for rental purposes. (Where a particular claim is flagged, the DNR case file abstract for said claim indicates that said claim is less than 40 acres in size, but rental is due thereon as if the claim encompassed 40 acres.) |
3 |
Information respecting the DNR Status was obtained from the DNR case file abstract obtained for each listed claim. |
4 |
Karl Hanneman is listed as customer on the DNR case file abstracts. The abstracts also indicate that on August 19, 1996, [Redacted Trustee Name] was added as a co-owner of said claims. Effective as of March 14, 2011, the interest in the claims held by [Redacted Trustee Name] was transferred to VMC Revocable Trust, the trustee of which is [Redacted - Trustee Name]. |
EXHIBIT APage 5
EXHIBIT B
Special Warranty Deed and Bill of Sale
[see attached form]
EXHIBIT BCover Page
RECORD IN THE FAIRBANKS RECORDING DISTRICT
INDEX THIS INSTRUMENT AS FOLLOWS:
Grantors: | [Redacted - Trustee Name], Trustee, VMC Revocable Trust | |
Hanneman, Karl | ||
VMC Revocable Trust, [Redacted - Trustee Name], Trustee | ||
Grantee: | Talon Gold Alaska, Inc. | |
Tower Hill Mines, Inc. | ||
Lands: | See Exhibit A attached hereto |
RETURN THIS INSTRUMENT TO: | Tower Hill Mines, Inc. |
506 Gaffney Road, Ste 200 | |
Fairbanks, Alaska 99701 | |
SPECIAL WARRANTY DEED AND BILL OF SALE
[Mining]
THIS SPECIAL WARRANTY DEED AND BILL OF SALE (this Deed), given this _____ day of December, 2011, by KARL HANNEMAN, a married individual dealing in his separate property (Hanneman), and VMC REVOCABLE TRUST, the trustee of which is [Redacted -Trustee Name] (said trust and trustee are collectively referred to herein as [Redacted - Seller Name]) (Hanneman and [Redacted - Seller Name] are referred to herein as Grantors), the address of Grantors for purposes hereof being [Redacted Address], to TOWER HILL MINES, INC. (formerly known as TALON GOLD ALASKA, INC.) (Grantee), an Alaska corporation the address of which is 506 Gaffney Road, Ste 200, Fairbanks, Alaska 99701,
WITNESSETH:
THAT FOR AND IN CONSIDERATION of the sum of ten dollars ($10.00) and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
(1) |
Grantors hereby CONVEY and SPECIALLY WARRANT (as set forth below but not otherwise) unto Grantee all of Grantors now owned and after-acquired rights, title, and interests (if any) in, under, to, and respecting the state mining claims described in Exhibit A attached hereto (the Claims), AS IS and in their present conditions and states (from place to place) of exploration, development, production, reclamation, and restoration, and |
SPECIAL WARRANTY DEEDPage 1
(2) |
Grantors hereby TRANSFER and SPECIALLY WARRANT (as set forth below but not otherwise) unto Grantee all of Grantors now owned and after-acquired rights, title, and interests in, to, and respecting the following personal property (the Personal Property), AS IS and WHERE IS: all of the soil samples, rock samples, drill chips, drill core, maps, analyses, assays, and any other geological, geochemical, or geophysical data, files, and records (whether in written, tabular, electronic, photographic, or other form and wherever situated) relating to the Claims or the lands included therein, |
TO HAVE AND TO HOLD FOREVER.
Grantors hereby SPECIALLY REPRESENT AND WARRANT unto Grantee and its successors and assigns that title to the Claims and the Personal Property is free and clear of any liens, encumbrances, or other interests arising by, through, or under Grantors. Grantors MAKE NO OTHER REPRESENTATIONS OR WARRANTIES with respect to either the Claims or the Personal Property. In particular, Grantors expressly disclaim any representation or warranty respecting the validity or good standing of any of the Claims, and Grantee hereby acknowledges and agrees to such disclaimer.
By accepting delivery of this Deed, (a) subject to the above special representation and warranty, Grantee hereby assumes any and all liabilities of Grantors or either of them relating in any way to the Claims, to the lands included therein, or to the Personal Property, and (b) Grantee intends to merge (i) the interest in the Claims that it holds under and pursuant to that certain Mining Lease with Option to Purchase dated September 1, 2006, between Grantors and Grantee, with and into (ii) the rights, title, and interests in the Claims conveyed by Grantors pursuant to this Deed.
SPECIAL WARRANTY DEEDPage 2
IN WITNESS WHEREOF, Grantors and Grantee have caused this Deed to be executed as of the date first written above.
Grantors:
KARL HANNEMAN | |||
VMC REVOCABLE TRUST | |||
By: | |||
Name: | [Redacted - Trustee Name] | ||
Title: | Trustee |
Grantee:
TOWER HILL MINES, INC. | |||
By: | |||
Name: | |||
Title: |
SPECIAL WARRANTY DEEDPage 3
Karl Hanneman Acknowledgment Block
STATE OF ALASKA | ) |
) ss. | |
FOURTH JUDICIAL DISTRICT | ) |
THIS CERTIFIES that on the _____ day of December, 2011, at Fairbanks, Alaska, the foregoing instrument was acknowledged before me by KARL HANNEMAN.
Notary Public in and for ____________________ | |
Residing at ______________________________ | |
My commission expires _____________________ |
VMC Revocable Trust Acknowledgment Block
STATE OF ALASKA | ) |
) ss. | |
FOURTH JUDICIAL DISTRICT | ) |
THIS CERTIFIES that on the _____ day of December, 2011, at Fairbanks, Alaska, the foregoing instrument was acknowledged before me by [Redacted - Trustee Name], Trustee of VMC Revocable Trust, acting in such capacity.
Notary Public in and for ____________________ | |
Residing at ______________________________ | |
My commission expires _____________________ |
SPECIAL WARRANTY DEEDPage 4
Tower Hill Mines, Inc. Notary Block
STATE OF | ) |
) ss. | |
COUNTY OF | ) |
or
STATE OF ALASKA | ) |
) ss. | |
FOURTH JUDICIAL DISTRICT | ) |
THIS CERTIFIES that on the _____ day of December, 2011, at _______________________ , __________________ , the foregoing instrument was acknowledged before me by (name) ___________________________, (title) _____________________ of TOWER HILL MINES, INC., an Alaska corporation, on behalf of said corporation.
Notary Public in and for ____________________ | |
Residing at ______________________________ | |
My commission expires _____________________ |
SPECIAL WARRANTY DEEDPage 5
EXHIBIT A
Claims
The following state mining claims situated situated within the following sections, all of which are situated in the Fairbanks Recording District, State of Alaska:
T. 8 North, R. 5 West, F.M.: | Secs. 11, 12, 13, 14, 15, 16, 21, 22, 27, and 28 |
T. 8 North, R. 4 West, F.M.: | Secs. 4, 5, 6, 7, 8, 9, 16, 17, and 18 |
T. 9 North, R. 4 West, F.M.: | Secs. 32 and 33 |
Claim Name |
Date of Posting1 |
DNR Record Owner |
DNR (ADL) Serial Number |
Acres2 |
DNR Status3 |
LUCKY 55 | 14-May-1981 | Karl Hanneman4 | 330936 | 40 | Active |
LUCKY 56 | 14-May-1981 | [same as above] | 330937 | 40 | Active |
LUCKY 64 | 13-May-1981 | [same as above] | 330938 | 40 | Active |
LUCKY 65 | 14-May-1981 | [same as above] | 330939 | 40 | Active |
LUCKY 66 | 14-May-1981 | [same as above] | 330940 | 40 | Active |
LUCKY 72 | 12-May-1981 | [same as above] | 330941 | 40 | Active |
LUCKY 73 | 13-May-1981 | [same as above] | 330942 | 40 | Active |
LUCKY 74 | 13-May-1981 | [same as above] | 330943 | 40 | Active |
LUCKY 75 | 14-May-1981 | [same as above] | 330944 | 40 | Active |
LUCKY 76 | 14-May-1981 | [same as above] | 330945 | 40 | Active |
LUCKY 82 | 12-May-1981 | [same as above] | 330946 | 40 | Active |
LUCKY 83 | 13-May-1981 | [same as above] | 330947 | 40 | Active |
LUCKY 84 | 13-May-1981 | [same as above] | 330948 | 40 | Active |
LUCKY 85 | 14-May-1981 | [same as above] | 330949 | 40 | Active |
LUCKY 86 | 14-May-1981 | [same as above] | 330950 | 40 | Active |
LUCKY 91 | 12-May-1981 | [same as above] | 330951 | 40 | Active |
LUCKY 92 | 12-May-1981 | [same as above] | 330952 | 40 | Active |
LUCKY 93 | 13-May-1981 | [same as above] | 330953 | 40 | Active |
LUCKY 94 | 13-May-1981 | [same as above] | 330954 | 40 | Active |
LUCKY 95 | 14-May-1981 | [same as above] | 330955 | 40 | Active |
LUCKY 96 | 14-May-1981 | [same as above] | 330956 | 40 | Active |
LUCKY 101 | 12-May-1981 | [same as above] | 330957 | 40 | Active |
LUCKY 102 | 12-May-1981 | [same as above] | 330958 | 40 | Active |
LUCKY 103 | 12-May-1981 | [same as above] | 330959 | 40 | Active |
LUCKY 104 | 12-May-1981 | [same as above] | 330960 | 40 | Active |
LUCKY 105 | 12-May-1981 | [same as above] | 330961 | 40 | Active |
LUCKY 106 | 12-May-1981 | [same as above] | 330962 | 40 | Active |
LUCKY 202 | 12-May-1981 | [same as above] | 330963 | 40 | Active |
LUCKY 203 | 13-May-1981 | [same as above] | 330964 | 40 | Active |
LUCKY 204 | 15-May-1981 | [same as above] | 330965 | 40 | Active |
LUCKY 205 | 13-May-1981 | [same as above] | 330966 | 40 | Active |
LUCKY 206 | 14-May-1981 | [same as above] | 330967 | 40 | Active |
EXHIBIT APage 1
Claim Name |
Date of Posting1 |
DNR Record Owner |
DNR (ADL) Serial Number |
Acres2 |
DNR Status3 |
LUCKY 207 | 14-May-1981 | [same as above] | 330968 | 40 | Active |
LUCKY 208 | 14-May-1981 | [same as above] | 330969 | 40 | Active |
LUCKY 302 | 13-May-1981 | [same as above] | 330970 | 40 | Active |
LUCKY 303 | 13-May-1981 | [same as above] | 330971 | 40 | Active |
LUCKY 304 | 15-May-1981 | [same as above] | 330972 | 40 | Active |
LUCKY 305 | 13-May-1981 | [same as above] | 330973 | 40 | Active |
LUCKY 306 | 14-May-1981 | [same as above] | 330974 | 40 | Active |
LUCKY 307 | 14-May-1981 | [same as above] | 330975 | 40 | Active |
LUCKY 308 | 14-May-1981 | [same as above] | 330976 | 40 | Active |
LUCKY 404 | 15-May-1981 | [same as above] | 330977 | 40 | Active |
LUCKY 405 | 13-May-1981 | [same as above] | 330978 | 40 | Active |
LUCKY 406 | 14-May-1981 | [same as above] | 330979 | 40 | Active |
LUCKY 198 | 17-Sep-1981 | [same as above] | 338477 | 40 | Active |
LUCKY 199 | 17-Sep-1981 | [same as above] | 338478 | 40 | Active |
LUCKY 295 | 17-Sep-1981 | [same as above] | 338479 | 40 | Active |
LUCKY 296 | 17-Sep-1981 | [same as above] | 338480 | 40 | Active |
LUCKY 297 | 17-Sep-1981 | [same as above] | 338481 | 40 | Active |
LUCKY 298 | 17-Sep-1981 | [same as above] | 338482 | 40 | Active |
LUCKY 299 | 17-Sep-1981 | [same as above] | 338483 | 40 | Active |
LUCKY 392 | 21-Sep-1981 | [same as above] | 338484 | 40 | Active |
LUCKY 395 | 18-Sep-1981 | [same as above] | 338485 | 40 | Active |
LUCKY 396 | 18-Sep-1981 | [same as above] | 338486 | 40 | Active |
LUCKY 397 | 18-Sep-1981 | [same as above] | 338487 | 40 | Active |
LUCKY 398 | 18-Sep-1981 | [same as above] | 338488 | 40 | Active |
LUCKY 399 | 17-Sep-1981 | [same as above] | 338489 | 40 | Active |
LUCKY 400 | 23-Sep-1981 | [same as above] | 338490 | 40 | Active |
LUCKY 491 | 21-Sep-1981 | [same as above] | 338491 | 40 | Active |
LUCKY 492 | 21-Sep-1981 | [same as above] | 338492 | 40 | Active |
LUCKY 493 | 21-Sep-1981 | [same as above] | 338493 | 40 | Active |
LUCKY 494 | 21-Sep-1981 | [same as above] | 338494 | 40 | Active |
LUCKY 495 | 18-Sep-1981 | [same as above] | 338495 | 40 | Active |
LUCKY 496 | 18-Sep-1981 | [same as above] | 338496 | 40 | Active |
LUCKY 497 | 18-Sep-1981 | [same as above] | 338497 | 40 | Active |
LUCKY 498 | 18-Sep-1981 | [same as above] | 338498 | 40 | Active |
LUCKY 499 | 17-Sep-1981 | [same as above] | 338499 | 40 | Active |
LUCKY 500 | 23-Sep-1981 | [same as above] | 338500 | 40 | Active |
LUCKY 504 | 10-Sep-1981 | [same as above] | 338501 | 40 | Active |
LUCKY 505 | 10-Sep-1981 | [same as above] | 338502 | 40 | Active |
LUCKY 589 | 21-Sep-1981 | [same as above] | 338503 | 402 | Active |
LUCKY 590 | 21-Sep-1981 | [same as above] | 338504 | 40 | Active |
LUCKY 591 | 21-Sep-1981 | [same as above] | 338505 | 40 | Active |
LUCKY 592 | 21-Sep-1981 | [same as above] | 338506 | 40 | Active |
LUCKY 593 | 21-Sep-1981 | [same as above] | 338507 | 40 | Active |
LUCKY 594 | 21-Sep-1981 | [same as above] | 338508 | 40 | Active |
EXHIBIT APage 2
Claim Name |
Date of Posting1 |
DNR Record Owner |
DNR (ADL) Serial Number |
Acres2 |
DNR Status3 |
LUCKY 595 | 18-Sep-1981 | [same as above] | 338509 | 40 | Active |
LUCKY 596 | 18-Sep-1981 | [same as above] | 338510 | 40 | Active |
LUCKY 597 | 18-Sep-1981 | [same as above] | 338511 | 40 | Active |
LUCKY 598 | 18-Sep-1981 | [same as above] | 338512 | 40 | Active |
LUCKY 599 | 17-Sep-1981 | [same as above] | 338513 | 40 | Active |
LUCKY 689 | 22-Sep-1981 | [same as above] | 338514 | 402 | Active |
LUCKY 690 | 22-Sep-1981 | [same as above] | 338515 | 40 | Active |
LUCKY 691 | 22-Sep-1981 | [same as above] | 338516 | 40 | Active |
LUCKY 692 | 22-Sep-1981 | [same as above] | 338517 | 40 | Active |
LUCKY 693 | 22-Sep-1981 | [same as above] | 338518 | 40 | Active |
LUCKY 694 | 22-Sep-1981 | [same as above] | 338519 | 40 | Active |
LUCKY 697 | 18-Sep-1981 | [same as above] | 338520 | 40 | Active |
LUCKY 698 | 18-Sep-1981 | [same as above] | 338521 | 40 | Active |
LUCKY 699 | 17-Sep-1981 | [same as above] | 338522 | 40 | Active |
LC 407 | 7-Jun-1982 | [same as above] | 347943 | 40 | Active |
LC 408 | 7-Jun-1982 | [same as above] | 347944 | 40 | Active |
LC 502 | 5-Jun-1982 | [same as above] | 347945 | 40 | Active |
LC 503 | 5-Jun-1982 | [same as above] | 347946 | 40 | Active |
LC 506 | 7-Jun-1982 | [same as above] | 347947 | 40 | Active |
LC 507 | 7-Jun-1982 | [same as above] | 347948 | 40 | Active |
LC 600 | 5-Jun-1982 | [same as above] | 347949 | 40 | Active |
LC 601 | 5-Jun-1982 | [same as above] | 347950 | 40 | Active |
LC 602 | 5-Jun-1982 | [same as above] | 347951 | 40 | Active |
LC 603 | 5-Jun-1982 | [same as above] | 347952 | 402 | Active |
LC 604 | 6-Jun-1982 | [same as above] | 347953 | 40 | Active |
LC 605 | 6-Jun-1982 | [same as above] | 347954 | 40 | Active |
LC 695 | 10-Jun-1982 | [same as above] | 347955 | 40 | Active |
LC 696 | 10-Jun-1982 | [same as above] | 347956 | 40 | Active |
LC 700 | 6-Jun-1982 | [same as above] | 347957 | 40 | Active |
LC 701 | 6-Jun-1982 | [same as above] | 347958 | 40 | Active |
LC 702 | 6-Jun-1982 | [same as above] | 347959 | 40 | Active |
LC 703 | 6-Jun-1982 | [same as above] | 347960 | 402 | Active |
LC 704 | 6-Jun-1982 | [same as above] | 347961 | 40 | Active |
LC 790 | 12-Jun-1982 | [same as above] | 347962 | 40 | Active |
LC 791 | 12-Jun-1982 | [same as above] | 347963 | 40 | Active |
LC 792 | 11-Jun-1982 | [same as above] | 347964 | 40 | Active |
LC 793 | 11-Jun-1982 | [same as above] | 347965 | 40 | Active |
LC 794 | 11-Jun-1982 | [same as above] | 347966 | 40 | Active |
LC 795 | 10-Jun-1982 | [same as above] | 347967 | 40 | Active |
LC 796 | 10-Jun-1982 | [same as above] | 347968 | 40 | Active |
LC 797 | 10-Jun-1982 | [same as above] | 347969 | 40 | Active |
LC 798 | 9-Jun-1982 | [same as above] | 347970 | 40 | Active |
LC 799 | 8-Jun-1982 | [same as above] | 347971 | 40 | Active |
LC 800 | 8-Jun-1982 | [same as above] | 347972 | 40 | Active |
EXHIBIT APage 3
Claim Name |
Date of Posting1 |
DNR Record Owner |
DNR (ADL) Serial Number |
Acres2 |
DNR Status3 |
LC 801 | 8-Jun-1982 | [same as above] | 347973 | 40 | Active |
LC 802 | 8-Jun-1982 | [same as above] | 347974 | 40 | Active |
LC 803 | 8-Jun-1982 | [same as above] | 347975 | 40 | Active |
LC 891 | 12-Jun-1982 | [same as above] | 347976 | 40 | Active |
LC 892 | 11-Jun-1982 | [same as above] | 347977 | 40 | Active |
LC 893 | 11-Jun-1982 | [same as above] | 347978 | 40 | Active |
LC 894 | 11-Jun-1982 | [same as above] | 347979 | 40 | Active |
LC 895 | 10-Jun-1982 | [same as above] | 347980 | 40 | Active |
LC 688 | 4-Jun-1982 | [same as above] | 348802 | 402 | Active |
LC 787 | 4-Jun-1982 | [same as above] | 348803 | 40 | Active |
LC 788 | 4-Jun-1982 | [same as above] | 348804 | 402 | Active |
LC 884 | 31-May-1982 | [same as above] | 348805 | 40 | Active |
LC 885 | 31-May-1982 | [same as above] | 348806 | 40 | Active |
LC 886 | 25-May-1982 | [same as above] | 348807 | 40 | Active |
LC 887 | 2-Jun-1982 | [same as above] | 348808 | 40 | Active |
LC 888 | 4-Jun-1982 | [same as above] | 348809 | 402 | Active |
LC 984 | 31-May-1982 | [same as above] | 348810 | 40 | Active |
LC 985 | 31-May-1982 | [same as above] | 348811 | 40 | Active |
LC 986 | 25-May-1982 | [same as above] | 348812 | 40 | Active |
LC 987 | 4-Jun-1982 | [same as above] | 348813 | 402 | Active |
LC 1083 | 30-May-1982 | [same as above] | 348814 | 40 | Active |
LC 1084 | 30-May-1982 | [same as above] | 348815 | 40 | Active |
LC 1085 | 30-May-1982 | [same as above] | 348816 | 40 | Active |
LC 1086 | 25-May-1982 | [same as above] | 348817 | 40 | Active |
LC 1183 | 29-May-1982 | [same as above] | 348818 | 40 | Active |
LC 1184 | 29-May-1982 | [same as above] | 348819 | 40 | Active |
LC 1185 | 29-May-1982 | [same as above] | 348820 | 40 | Active |
LC 1186 | 25-May-1982 | [same as above] | 348821 | 40 | Active |
LC 1282 | 28-May-1982 | [same as above] | 348822 | 40 | Active |
LC 1283 | 28-May-1982 | [same as above] | 348823 | 40 | Active |
LC 1284 | 28-May-1982 | [same as above] | 348824 | 40 | Active |
LC 1285 | 28-May-1982 | [same as above] | 348825 | 40 | Active |
LC 1286 | 26-May-1982 | [same as above] | 348826 | 40 | Active |
LC 1287 | 26-May-1982 | [same as above] | 348827 | 40 | Active |
LC 1288 | 2-Jun-1982 | [same as above] | 348828 | 402 | Active |
LC 1382 | 27-May-1982 | [same as above] | 348829 | 40 | Active |
LC 1383 | 27-May-1982 | [same as above] | 348830 | 40 | Active |
LC 1384 | 27-May-1982 | [same as above] | 348831 | 40 | Active |
LC 1385 | 27-May-1982 | [same as above] | 348832 | 40 | Active |
LUCKY 90 | 24-Oct-1983 | [same as above] | 361326 | 40 | Active |
LUCKY 100 | 24-Oct-1983 | [same as above] | 361327 | 40 | Active |
LUCKY 200 | 24-Oct-1983 | [same as above] | 361328 | 40 | Active |
EXHIBIT APage 4
Claim Name |
Date of Posting1 |
DNR Record Owner |
DNR (ADL) Serial Number |
Acres2 |
DNR Status3 |
LUCKY 294 | 28-Oct-1983 | [same as above] | 361329 | 40 | Active |
LUCKY 300 | 24-Oct-1983 | [same as above] | 361330 | 40 | Active |
LUCKY 394 | 28-Oct-1983 | [same as above] | 361331 | 40 | Active |
LUCKY 401 | 24-Oct-1983 | [same as above] | 361332 | 40 | Active |
LUCKY 402 | 24-Oct-1983 | [same as above] | 361333 | 40 | Active |
LUCKY 403 | 24-Oct-1983 | [same as above] | 361334 | 40 | Active |
LUCKY 501 | 24-Oct-1983 | [same as above] | 361335 | 40 | Active |
1 |
Information respecting the Date of Posting was obtained from the DNR case file abstract for each listed claim. The information in the abstract for each claim should have been obtained from the certificate of location for that claim. |
2 |
The noted size is for rental purposes. (Where a particular claim is flagged, the DNR case file abstract for said claim indicates that said claim is less than 40 acres in size, but rental is due thereon as if the claim encompassed 40 acres.) |
3 |
Information respecting the DNR Status was obtained from the DNR case file abstract obtained for each listed claim. |
4 |
Karl Hanneman is listed as customer on the DNR case file abstracts. The abstracts also indicate that on August 19, 1996, [Redacted Trustee Name] was added as a co-owner of said claims. Effective as of March 14, 2011 the interest in the claims held by [Redacted Trustee Name] was transferred to VMC Revocable Trust, the trustee of which is [Redacted - Trustee Name]. |
EXHIBIT APage 5
EXHIBIT C
FIRPTA Certificate
[see attached forms]
EXHIBIT CCover Page
AFFIDAVIT OF NON-FOREIGN STATUS (ENTITY)
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. For U.S. tax purposes (including section 1445), the owner of a disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity.
To inform Tower Hill Mines, Inc. (Transferee) that withholding of tax is not required upon the disposition of a U.S. real property interest by [insert name of transferor in the following blank] _________________________________ (Transferor), the undersigned [insert name of authorized signatory in the following blank] _________________________________ hereby certifies the following on behalf of Transferor:
1) |
Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations) for purposes of U.S. income taxation; | |
2) |
Transferor is not a disregarded entity as defined in § 1.1445-2(b)(2)(iii); | |
3) |
Transferors U.S. Employer Identification Number is _________________________ ; and | |
4) |
Transferors office address is _____________________________________________________________________. | |
Transferor understands that this affidavit may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.
Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Transferor.
Date: _______________ | By:___________________________ |
[authorized signatory] |
FIRPTA Certificate (Entity)
AFFIDAVIT OF NON-FOREIGN STATUS (INDIVIDUAL)
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.
To inform Tower Hill Mines, Inc. (Transferee) that withholding of tax is not required upon my disposition of a U.S. real property interest, I hereby certify the following:
1) |
I am not a nonresident alien (as defined in the Internal Revenue Code and Income Tax Regulations) for purposes of U.S. income taxation; | |
2) |
My U.S. Social Security Number is ___________________________________; and | |
3) |
My home address is ________________________________________________________________________. | |
I understands that this affidavit may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.
Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete.
Date: _______________ | |
Printed name:_________________________ |
FIRPTA Certificate (Individual)
ATTACHMENT 1
Initial Payment Instructions
Payments to Karl Hanneman and VMC Revocable Trust shall be made pursuant to Section 3.5 of the Agreement to the following accounts:
Karl Hanneman: | [Redacted Bank Account] |
VMC Revocable Trust: | [Redacted Bank Account] |
FIRPTA Certificate (Individual)
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