ASSIGNMENT AGREEMENT

 

 

THIS AGREEMENT dated for reference the 17 day of May, 2012

 

BETWEEN:

Patriot Minefinders Inc., 606 - 610 Granville Street, Vancouver, BC  V6C 3T3

(the “Assignee”)

AND:

Skanderbeg Capital Partners Inc., Suite 700 – 510 West Hastings Street,
Vancouver, BC  V6B 1L8

(“Skanderbeg” or the “Assignor”)

WHEREAS:

A.

San Marco Resources Inc. (“San Marco”) and Skanderbeg entered into an option
agreement dated February 28, 2012, attached hereto as Exhibit “A” (the “Option
Agreement”) wherein Skanderbeg has an exclusive option to acquire from San Marco
an undivided 50% right, title and interest in and to certain mineral claims
known as the La Buena Project, located in Mexico as set out in Schedule “A” of
the Option Agreement (the “Property”); and

B.

Skanderbeg wishes to assign to the Assignee all of Skanderbeg's right, title and
interest in and to the Option Agreement and the Property in accordance with the
terms of this Agreement (the “Assignment”).  

NOW THEREFORE, in consideration of the sum of $10.00 now paid by the Assignee to
the Assignor (the receipt and sufficiency of which are hereby acknowledged by
the Assignor), the Assignor covenant and agree as follows:

THE ASSIGNMENT AND ACCEPTANCE

1.

Skanderbeg hereby unconditionally forever assigns and transfers to the Assignee
all of Skanderbeg’s right, title and interest in and to the Option Agreement and
the Property and all benefits and advantages to be derived therefrom (the
“Assignment”).

2.

In consideration for the Assignment, the Assignee hereby agrees to issue
2,500,000 restricted shares of common stock of the Assignee (the “Consideration
Shares”), to San Marco (pursuant to section 4(a)(ii) of the Option Agreement) of
which 1,000,000 are to be issued by May 31, 2012 upon the delivery of the
necessary documentation from San Marco to allow for the issuance of the
Consideration Shares pursuant to exemptions from the registration requirements
of the United States Securities Act of 1933, as amended (the “1933 Act”).

 

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3.

In consideration for the Assignment, the Assignee hereby agrees to pay
CDN$100,000 (the “Cash Consideration”) to the Assignor, to be paid upon
execution of this Agreement.

4.

The Assignee hereby covenants and agrees with the Assignor that the Assignee
will fully and faithfully abide by all terms and conditions of the Option
Agreement and fully and faithfully perform all responsibilities and obligations
of the Assignor under the Option Agreement. This includes agreeing to make all
monetary and royalty payments to San Marco and all required payments and
property expenditures as set out in the Option Agreement.

5.

The Assignor hereby covenants and agrees with the Assignee that the Assignor
shall be responsible for the shortfall of any required payments and property
expenditures as set out in the Option Agreement that the Assignee has not paid.

6.

The Assignor represents and warrants to the Assignee, with the knowledge that
the Assignee relies upon same in entering into this Agreement, that:

(a)

the mineral claims comprising the Property (as defined therein), the Option
Agreement and the mineral agreements in respect thereof have been, to the best
of the Assignors’ knowledge and belief after due inquiry, duly and validly
located, granted, entered into and recorded, as the case may be, pursuant to the
laws of the jurisdiction in which the Property is situate and are in each case
in good standing with respect to all filings, fees, rentals, taxes, assessments,
work commitments and other obligations and conditions on the date hereof and
until the dates set opposite the respective names;

(b)

the Assignor has all requisite power and capacity, and has duly obtained all
requisite authorizations and performed all requisite acts, to enter into and
perform their obligations hereunder, they has duly executed and delivered this
Agreement and such constitutes a legal, valid and binding obligation of them
enforceable against them in accordance with the Agreement's terms, and the
entering into of this Agreement and the performance of their obligations
hereunder does not and will not result in a breach of, default under or conflict
with any of the terms and provisions of any of their constituting documents, any
resolutions of their partners, any indenture, agreement or other instrument to
which they are a party or by which they are bound or the Property may be
subject, or any statute, order, judgment or other law or ruling of any competent
authority;

(c)

there are neither any adverse claims or challenges against, or to the ownership
or title to, any of the mineral claims comprising the Property or to the
validity or enforceability of any of the mineral agreements in respect thereof,
nor to the knowledge of the Assignors after due inquiry is there any basis
therefor, and there are no outstanding agreements, options or other rights and
interests to acquire or purchase the Property or any portion thereof or any
interest therein, and no person has any royalty or other interest whatsoever in
the production from any of the mineral claims comprising the Property or
otherwise;

(d)

the Option Agreement is in good standing as at the date hereof and no default
has occurred therein;

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(e)

the Assignor has the legal capacity and competence to enter into and execute
this Agreement and to take all actions required pursuant hereto and they are
duly incorporated and validly subsisting under the laws of its jurisdiction of
incorporation and all necessary approvals by their directors, shareholders and
others have been obtained to authorize execution and performance of this
Agreement on behalf of the Assignors;

7.

The Assignor acknowledges and agrees that:

(a)

the Assignee is entitled to rely on the representations and warranties and the
statements and answers of the Assignors contained in this Agreement, and the
Assignors will hold harmless the Assignee from any loss or damage it may suffer
as a result of the Assignors’ failure to correctly complete this Agreement;

(b)

the Assignor will indemnify and hold harmless the Assignee and, where
applicable, its respective directors, officers, employees, agents, advisors and
shareholders from and against any and all loss, liability, claim, damage and
expense whatsoever (including, but not limited to, any and all fees, costs and
expenses whatsoever reasonably incurred in investigating, preparing or defending
against any claim, lawsuit, administrative proceeding or investigation whether
commenced or threatened) arising out of or based upon any representation or
warranty of the Assignor contained herein, or in any other document furnished by
the Assignor to the Assignee in connection herewith, being untrue in any
material respect or any breach or failure by the Assignor to comply with any
covenant or agreement made by the Assignor to the Assignee in connection
therewith;

8.

The Assignor will at all times hereafter execute and deliver, at the request of
the Assignee, all such further documents, deeds and instruments, and will do and
perform all such acts as may be necessary or desirable to give full effect to
the intent and meaning of this Agreement.  Without limiting the generality of
the foregoing, the Assignor will execute such financing statements, financing
change statements, notices or directions as may be necessary or advisable to
cause all pertinent offices of public record to amend their records to show the
interests of the Assignee in the Option Agreement.

9.

Each of the parties to this Agreement acknowledges that such party has read this
document and fully understands the terms of this Agreement, and acknowledges
that this Agreement has been executed voluntarily after either receiving
independent legal advice, or having been advised to obtain independent legal
advice and having elected not to do so

10.

This Agreement will enure to the benefit of the Assignee and its successors and
assigns, and will be binding upon the Assignors and their successors and
assigns.

11.

This Agreement will be governed by and construed in accordance with the laws in
force in the State of Nevada and the parties submit to the non-exclusive
jurisdiction of the courts of State of Nevada in any proceedings pertaining to
the Assignment or this Agreement.

12.

This Agreement may be executed in any number of counterparts with the same
effect as if all parties hereto had all signed the same document.  All
counterparts will be construed together and will constitute one and the same
agreement.

 

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IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day
and year first above written.

Patriot Minefinders Inc.

Per:        s/  John H. Schweitzer, ESQ.   
            Authorized Signatory

            JOHN H. SCHWEITZER, ESQ.

            CEO/DIRECTOR

Skanderbeg Capital Partners Inc.

Per:       s/  Bradley N. Scharfe    
            Authorized Signatory

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Exhibit A

Option Agreement

 

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