Exhibit 10.2

SUBORDINATED SECURED PROMISSORY NOTE

U.S. $400,000

January 28, 2012

1.

FOR VALUE RECEIVED, the undersigned, jointly and severally, (collectively,
"Borrower") promises to pay SARASOTA VARCA ASSOCIATES LLC, or assignee ("Note
Holder") the principal sum of $400,000 U.S. Dollars ("Principal Amount"), with
interest thereon from the date set forth above, until paid, at the rate of 12%
per annum.  Accrued interest shall be payable monthly as set forth in Section 7
below, beginning with the monthly period ending February 29, 2012.  The entire
Principal Amount and all accrued and unpaid interest thereon shall be due and
payable in full on or before July 31, 2013 (the "Balloon Payment").

2.

The Balloon Payment shall be made by check and payable to the order of Note
Holder at the address of Note Holder set forth in Section 6.04 of that certain
Loan Agreement dated January 28, 2012 by and between Borrower, Wildcat Mining
Corporation, Note Holder and the other lenders a party thereto (the "Loan
Agreement"), or wire transfer.

3.

If the Balloon Payment is not paid when due, or if any default under any Deed of
Trust securing this Note occurs, the entire principal amount outstanding and
accrued interest thereon shall at once become due and payable at the option of
the Note Holder; and the indebtedness shall bear interest at the rate of 18% per
annum from the date of default.  Note Holder shall be entitled to collect all
reasonable costs and expenses of collection and/or suit, including, but not
limited to reasonable attorneys' fees.

4.

Borrower may prepay the principal amount outstanding under this Note, in whole,
at any time with a penalty.  In the event of a prepayment, Borrower shall pay to
Note Holder 105% of the principal balance, plus any accrued interest due thereon
as of the date of such prepayment.

5.

Borrower and all other makers, sureties, guarantors, and endorses hereby waive
presentment, notice of dishonor and protest, and they hereby agree to any
extensions of time of payment and partial payments before, at, or after
maturity.  This Note shall be the joint and several obligation of Borrower and
all other makers, sureties, guarantors and endorsers, and their successors and
assigns.

6.

Any notice to Borrower provided for in this Note shall be in writing and shall
be given and be effective in accordance with Section 6.04 of the Loan Agreement.
 

7.

Note Holder may elect to receive its interest payment for any monthly period
(the "Interest Payment") in shares of common stock of Varca Venture, Inc.
("Shares") instead of in U.S. Dollars via a check or wire transfer ("Cash") by
providing Borrower a completed and executed copy of the notice attached hereto
as Exhibit A (the "Notice") on or before the last trading day of such monthly
period (the "Notice Deadline").  If Borrower doesn't receive a completed and
executed copy of the Notice on or before the Notice Deadline, Borrower shall pay
Note Holder the Interest Payment in Cash within five days after the Notice
Deadline. Note Holder must provide the Notice to Borrower on or before the
Notice Deadline for each monthly period it elects to receive Shares instead of
Cash.  Upon Note Holder's election to receive the Interest Payment in the form
of Shares in accordance with this Section 7, Note Holder will receive that
number of Shares equal to the Interest Payment divided by the Share Price.  No
fractional shares will be issued but instead will be rounded up to the nearest
whole share.  For purposes of this Note, the "Share Price" shall be equal to the
average of the closing sales price of a Share for the ten trading days ending
five trading days after the Notice Deadline.  

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8.

The indebtedness evidenced by this Note is secured by a Deed of Trust dated
January 28, 2012 and until released said Deed of Trust contains additional
rights of Note Holder.  Such rights may cause acceleration of the indebtedness
evidenced by this Note.  Reference is made to said Deed of Trust for such
additional terms.  Said Deed of Trust grants rights in the property identified
as follows:

All of the following described lode mining claims situate, lying and being in
the California Mining District, La Plata County, Colorado, to-wit:

NAME OF CLAIM (Patented Lode)

PATENT U.S. SURVEY NUMBER

 

 

Idaho Millsite

18320

Idaho Millsite No.1

18321

Idaho Millsite No.2

18321

Alpine

18321

Lord Kitchener

17108

Hartford

17108

Gertrude

16616

Good Hope

17124

SUNRISE

17124

Cathryn

16616

Midnight

19646

Helen

19515

Midnight No.2

19646

Pay Day

19516 "A"

Pay Day Millsite

19516 "B"

EXECUTED BY BORROWER

 

VARCA VENTURES, INC.

a Nevada corporation

By:__/s/ Randall Oser

      Randall Oser, President

      

WILDCAT MINING CORPORATION

a Nevada corporation

By:__/s/ Randall Oser

      Randall Oser, President

Borrower's Address: 1630 Ringling Blvd., Sarasota, FL 34236

KEEP THIS NOTE IN A SAFE PLACE.  THE ORIGINAL OF THIS NOTE MUST BE EXHIBITED TO
THE PUBLIC TRUSTEE IN ORDER TO RELEASE A DEED OF TRUST SECURING THIS NOTE.

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VARCA VENTURES, INC.

NOTICE OF ELECTION

TO

RECEIVE INTEREST PAYMENT

IN

SHARES OF COMMON STOCK

The undersigned hereby elects, as of __________, 2012:

To receive the monthly accrued interest payment on the outstanding principal
balance on the subordinated secured promissory note issued by Varca Ventures,
Inc. ("Varca") and Wildcat Mining Corporation on January ___, 2012 in the name
of the undersigned (the "Note") in shares of Varca common stock, in accordance
with the terms and conditions set forth in the Note.

 

Signature: ___________________________________

Print Name: _________________________________

Entity (if applicable): ___________________________

_________________________________________________

Title (if applicable): ____________________________

Address: ____________________________________

_________________________________________________

Date: ______________________________________

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