**Exhibit        10.40**

**SALE        OF SHARES AND CLAIMS AGREEMENT**

**1**
**PARTIES**

| 1.1 | The                  parties to this agreement are - |
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| 1.1.1 | **Wits                  Basin Precious Minerals Inc**; |
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| 1.1.2 | **SSC                  Mandarin Financial Services Limited**;                  and |
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| 1.1.3 | **SSC                  Mandarin Africa (Proprietary) Limited**. |
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| 1.2 | The                  parties agree as set out below. |
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**2**
**INTERPRETATION**

| 2.1 | In                  this agreement, unless inconsistent with or otherwise indicated                  by the                  context - |
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| 2.1.1 | "**the/this                  agreement**"                  means the agreement as set out herein together with all appendices                  hereto; |
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| 2.1.2 | **“business                  day”**                  means a day which is not a Saturday, Sunday or a United States                  public                  holiday; |
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| 2.1.3 | **“the                  collaboration agreement”**                  means the collaboration agreement entered into on 4 August 2006                  between                  the company and the and Kumba Iron Ore Limited, a indirect subsidiary                  of                  Anglo American plc; |
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| 2.1.4 | “**the                  company**”                  means SSC Mandarin Africa (Proprietary) Limited, with registration                  number                  1998/010265/07, a private company duly incorporated in accordance                  with the                  laws of the Republic of South Africa, herein represented by Nick                  Venter,                  he being duly authorised; |
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| 2.1.5 | "**the                  documents of title**"                  means collectively – |
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**1**

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| 2.1.5.1 | the                  share certificates in respect of the subject shares, together with                  share                  transfer forms in respect thereof duly completed in accordance                  with the                  articles of association of the company, indicating the purchaser                  or his                  nominee as the transferee of the subject shares and dated the effective                  date; |
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| 2.1.5.2 | a                  certified copy of a resolution of the directors of the company                  passed in                  accordance with the articles of association of the company approving                  the                  transfer of the subject shares in the name of the                  purchaser; |
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| 2.1.5.3 | the                  written and signed cession of the claims in favour of the                  purchaser; |
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| 2.1.6 | “**the                  effective date**”                  means the signature date; |
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| 2.1.7 | "**the                  parties**"                  means all the parties to this                  agreement; |
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| 2.1.8 | "**the                  purchaser**"                  means                  Wits Basin Precious Minerals Inc. (OTCBB: WITM),                  a                  public company duly incorporated in accordance with the laws Minnesota,                  United States of America, or its appointed nominee, herein represented                  by                  Stephen David King, he having been duly authorised hereto; |
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| 2.1.9 | "**the                  Seller**"                  means SSC Mandarin Financial Services Limited, with registration                  number                  C.I.                  641254,                  a                  company duly incorporated in terms of the laws of Hong Kong, herein                  represented by Lee                  Sing Leung, Robin,                  he being duly authorised thereto; |
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| 2.1.10 | “**the                  signature date**”                  means the date of signature of this agreement as identified on                  the                  signature page; |
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| 2.1.11 | “**the                  subject claims**”                  means any and all claims of whatsoever nature and howsoever arising                  held                  by the seller against the company as at the effective                  date; |
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**2**

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| 2.1.12 | "**the                  subject shares**"                  means 40 (forty) ordinary par value shares amounting to 40% (forty                  percentum) of the company’s issued share capital at the effective                  date; |
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| 2.1.13 | any                  reference to the singular includes the plural and *vice                  versa*; |
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| 2.1.14 | any                  reference to natural persons includes legal persons and *vice                  versa*; |
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| 2.1.15 | any                  reference to a gender includes the other                  genders. |
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| 2.2 | If                  any provision in a definition is a substantive provision conferring                  rights                  or imposing obligations on any party, effect shall be given to                  it as if it                  were a substantive clause in the body of the agreement notwithstanding                  that it is only contained in the interpretation                  clause. |
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| 2.3 | The                  clause headings in this agreement have been inserted for convenience                  only                  and shall not be taken into account in its                  interpretation. |
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| 2.4 | If                  any period is referred to in this agreement by way of reference                  to a                  number of days, the days shall be reckoned exclusively of the first                  and                  inclusively of the last day unless the last day falls on a day                  other than                  a business day, in which case the last day shall be the next succeeding                  business day. |
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| 2.5 | Words                  and expressions defined in any sub-clause shall, for the purposes                  of the                  clause of which that sub-clause forms part, bear the meaning assigned                  to                  such words and expressions in that                  sub-clause. |
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| 2.6 | This                  agreement shall be governed by and construed and interpreted in                  accordance                  with the laws of the United Sates of                  America. |
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**3**
**INTRODUCTION**

| 3.1 | It                  is recorded that – |
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| 3.1.1 | the                  seller is the owner of the subject shares and the subject claims; |
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**3**

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| 3.1.2 | the                  purchaser wishes to acquire the subject shares and the subject                  claims from                  the seller and the seller is willing to dispose of the subject                  shares and                  the subject claims to the purchaser on the effective date, subject                  to the                  terms and conditions set out in this                  agreement. |
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| 3.2 | The                  parties accordingly agree as set out                  herein. |
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**4**
**PURCHASE        AND SALE**

**5            **
**SHARE CAPITAL OF THE COMPANY**

| 5.1 | It                  is recorded that the company is duly registered with a share capital                  as                  follows : |
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| 5.1.1 | an                  authorised share capital of R1000,00 (one thousand Rand) divided                  into 1000                  (one thousand) ordinary par value shares of R1,00 (one Rand) each;                  and |
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| 5.1.2 | an                  issued share capital of R100,00 (one hundred Rand) divided into                  100 (one                  hundred) ordinary par value shares of R1,00 (one Rand)                  each. |
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**6**
**PURCHASE        PRICE **

**7**
**PAYMENT        OF PURCHASE PRICE**

**4**

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**8**
**WARRANTIES**

| 8.1 | the                  company will not be under any obligations to issue any shares or                  debentures to any person, and no resolution will have been passed                  to                  increase its capital or to issue further shares or any                  debentures; |
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| 8.2 | no                  person will have any lien or other preferential right in respect                  of the                  share capital of the company, nor will any person other than the                  seller                  have any claim to any of the subject shares in the                  company; |
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| 8.3 | the                  company will not have declared any dividends which will not have                  been paid                  in full. |
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| 8.4 | Except                  as set out above, the shares and claims are sold without any warranties                  of                  any nature, either express or                  implied. |
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**9            **
**DELIVERY**
** AND            CLOSING**

| 9.1 | deliver                  to the purchaser – |
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| 9.1.1 | the                  share certificates in respect of the sale shares together with                  duly signed                  and currently dated share transfer forms in respect thereof duly                  completed                  in negotiable form; |
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| 9.1.2 | a                  copy of a resolution of the seller approving the transaction contemplated                  in terms of this agreement. |
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**10            **
**CONFIDENTIALITY**

**5**

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**11**
**RISK        AND BENEFIT**

| 11.1 | All                  risk in and benefit to the subject shares and subject claims shall                  pass to                  the purchaser on the effective                  date. |
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| 11.2 | Ownership                  of the subject shares and subject claims shall pass to the purchaser                  with                  effect from the effective date. |
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**12**
**BREACH**

**the        party in default**
**the        innocent party/ies**

**13**
**NOTICES        AND DOMICILIA**

| 13.1 | The                  parties choose as their *domicilia                  citandi et executandi*                  their respective addresses set out in this clause for all purposes                  arising                  out of or in connection with this agreement at which addresses                  all                  processes and notices arising out of or in connection with this                  agreement,                  its breach or termination may validly be served upon or delivered                  to the                  parties. |
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| 13.2 | For                  purposes of this agreement the parties’ respective addresses shall                  be – |
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| 13.2.1 | the                  seller at Suite 3015, 30/F, One International Finance Centre,                  1 Harbour View Street, Central, Hong                  Kong; |
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**6**

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| 13.2.2 | the                  purchaser at 900 IDS Center 80 South 8th                  Street Minneapolis, MN 55402, United States for attention Mr.** **Mark                  D. Dacko, |
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| 13.2.3 | the                  company at 170 Oxford Road, Melrose, Johannesburg; |
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| 13.3 | Any                  notice given in terms of this agreement shall be in writing and                  shall – |
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| 13.3.1 | if                  delivered by hand be deemed to have been duly received by the addressee                  on                  the date of delivery; |
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| 13.3.2 | if                  transmitted by facsimile be deemed to have been received by the                  addressee                  on the day following the date of                  despatch, |
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| 13.4 | Notwithstanding                  anything to the contrary contained or implied in this agreement,                  a written                  notice or communication actually received by one of the parties                  from                  another including by way of facsimile transmission shall be adequate                  written notice or communication to such                  party. |
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**14**
**WHOLE        AGREEMENT**

**15**
**VARIATION**

**7**

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**16**
**RELAXATION**

**17**
**COSTS**

**8**

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| SIGNED                at _______________________________________ |   | as of                ________________________________________  |
|------------------------------------------------------------------|--------|---------------------------------------------------------------------|
|                                                             |   |                                                                |   |
| AS                WITNESS:                                       |   |                                                                |   |
|                                                             |   |                                                                |   |
|                                                             |   |                                                                | **WITS                BASIN PRECIOUS** |
|                                                             |   | For:                                                      | **MINERALS                INC** |
|                                                             |   |                                                                |   |
|                                                             |   |                                                                |
| (Name                  of witness in print)                      |   | Duly                Authorised                                      |
|                                                             |   |                                                                |   |
| SIGNED                at _______________________________________ |   | as of ________________________________________            |
|                                                             |   |                                                                |   |
| AS                WITNESS:                                       |   |                                                                |   |
|                                                             |   |                                                                |   |
|                                                             |   |                                                                | **SSC                MANDARIN FINANCIAL** |
|                                                             |   | For:                                                                | **SERVICES                LIMITED** |
|                                                             |   |                                                                |   |
|                                                             |   |                                                                |
| (Names                  of witness in block letters)             |   | Duly                authorised                                      |
|                                                             |   |                                                                |   |
| SIGNED                at _______________________________________ |   | as of                _________________________________________ |
|                                                             |   |                                                                |   |
| AS                WITNESS:                                       |   |                                                                |   |
|                                                             |   |                                                                |   |
|                                                             |   |                                                                | **SSC                MANDARIN AFRICA** |
|                                                             |   | For:                                                                | **(PROPRIETARY)                LIMITED** |
|                                                             |   |                                                                |   |
|                                                             |   |                                                                |
| (Names                of witness in block letters)               |   | Duly                authorised                                      |

**9**

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