Document:

Unassociated Document

EXHIBIT 4.13

 

MINING LEASE AND AGREEMENT

 

THIS MINING LEASE AND AGREEMENT (this "Agreement"), made this 27th day of September 2010, and by and between GOLD STANDARD VENTURES (US) INC., a Nevada Corporation (“GOLD STANDARD”), and THOMAS J. TOMERA and PATSY S. TOMERA, TRUSTEES OF THE THOMAS J. TOMERA FAMILY TRUST (hereinafter individually and collectively called (“Owner"):

 

WITNESSETH:

 

In consideration of an initial advance minimum royalty ("AMR") payment of SEVENTEEN DOLLARS AND FIFTY CENTS ($17.50) per net mineral acre of the Property (the "Initial Payment"), made to Owner upon execution of this Agreement, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and of the promises and covenants contained in this Agreement, Owner and GOLD STANDARD agree as follows:

 

ARTICLE ONE

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

1.1       Owner represents and warrants to GOLD STANDARD, that to the best of Owner's knowledge and belief:

 

  

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a.           They own the entire right, title and interest to the property described in Exhibit A attached hereto (collectively referred to herein as the ("Property"), located in Elko County, Nevada, and containing 720.05 net mineral acres, more or less;

 

b.           That the Property is free and clear of all liens, clouds, encumbrances and adverse claims of third parties;

 

c.           That Owner has good and valid right and authority to make and deliver this Agreement;

 

d.           That the Property is not burdened with any royalties, overriding royalties or payments on production;

 

e.           That the Property is not subject to any prior agreement, encumbrances, burden or restriction created by any act or instrument of Owner; and

 

f.           Owner or others with Owner's permission have conducted mining or industrial operations or activities upon the Property prior to the date of this Agreement, such as exploration, but to the best knowledge and information of Owner has not conducted other surface and underground disturbances (including, but not limited to, underground workings, waste dumps, and tailings). For the term of this Agreement, Owner hereby irrevocably assigns to GOLD STANDARD any and all rights of indemnity, if any, which Owner may have or hold, from or against any third parties for any damages arising from such activities, if any, conducted by such third parties.

 

  

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1.2           GOLD STANDARD covenants that GOLD STANDARD shall indemnify and hold harmless Owner from all liability, including attorney's fees and costs, arising out of GOLD STANDARD's exploration and other activities upon the Property hereunder, including but not limited to environmental and reclamation liabilities under existing and future laws and regulations. The indemnity set for the herein shall survive termination or expiration of this Agreement.

 

ARTICLE TWO

 

GRANT

 

2.1           Owner hereby grants, lets and leases exclusively to GOLD STANDARD the Property, for the term hereof, together with all ores and minerals of every kind, except geothermal resources, coal and oil and gas and other hydrocarbons, water (collectively, "Excluded Substances") and sand and gravel, in, on or under the Property, with the exclusive right to prospect and explore for, mine by any method now known or hereafter discovered (including, but not limited to, underground, open pit, in-situ and solution methods), process by any method now known or hereafter discovered, mill, prepare for market, store, sell, and dispose of the same; and together with all  such rights-of-way and easements to the extent owned by Owner, if any, through, over, on or appertaining to the Property. In the event Owner acquires any additional rights, titles or interests in the Property after the execution of this Agreement, all such additional rights, titles and interests shall be subject to this Agreement.

 

  

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ARTICLE THREE

 

LESSER INTEREST; THIRD PARTY CLAIMS

 

3.1            If Owner's title is less than as stated in Article 1 hereof or is subject to a superior adverse interest, all payments, including AMR and Production Royalty payments, without limitation, to be made to Owner hereunder shall be reduced to the same proportion thereof as the undivided interest in the Property solely owned by Owner bears to the entire interest in the Property. However, Owner shall not be required to reimburse GOLD STANDARD for an AMR or Production Royalty overpayments paid by GOLD STANDARD to Owner prior to discovery of the superior adverse interest or of the lesser interest.

 

ARTICLE FOUR

 

TERM

 

 4.1           Unless sooner terminated as provided in this Agreement, the term of this Agreement shall be for a primary period often (10) years from the Effective date and shall continue so long thereafter as Commercial Mining Operations are being conducted on the Property. "Commercial Mining Operations" shall mean production in commercial quantities of any leased minerals that has not ceased after commencement for a period of more than eighteen months, provided that if GOLD STANDARD has commenced development of a mine at the end of the primary term and thereafter AMR Payment Amount Due diligently continues completion of such development and commencement of production in commercial quantities, such development shall be considered as Commercial Mining Operations.

 

  

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4.2           Provided that GOLD STANDARD is conducting exploration, development or mining operations on the Property at the end of the primary term set forth in Article 4.1 above, GOLD STANDARD shall have the option to extend the primary term of this Agreement for an additional period often (10) years. In order to exercise such option, GOLD STANDARD shall provide notice of its election prior to the end of the initial primary term and shall also tender the AMR payment set forth in Article 5(b) for the Tenth Anniversary. Notwithstanding termination, expiration or surrender of this Agreement, GOLD STANDARD shall nevertheless have the right of ingress and egress from the Property and the right to complete such reclamation and restoration of the Property and to make such inspections as may be required by law, for so long after termination of this Agreement as is reasonably necessary to complete all such reclamation, restoration and inspections or as limited by any surface use agreement pertaining to the Property or any portion thereof.

 

  

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ARTICLE FIVE

 

ADVANCE MINIMUM ROYALTY (AMR) PAYMENTS

 

5.1       Initial Payment. The Initial Payment made to Owner upon execution of this Agreement satisfies the advance minimum royalty (AMR) payment obligation for the first year of the Agreement.

 

a.           Annual Payments. In order to maintain this Agreement in effect, GOLD STANDARD shall, so long as this Agreement shall remain in effect, pay to Owner subsequent AMR payments on the anniversary of the Effective Date of this Agreement, commencing on the first anniversary as follows:

 

 

	
Due Date   

	AMR payment amount due 
	
First and Second Anniversaries

	$17.50 per acre 
	
Third and Fourth Anniversaries

	$21.00 per acre 
	
Fifth and Sixth Anniversaries

	$24.50 per acre 
	
Seventh and subsequent Anniversaries

	 
	
As long as this Agreement remains in effect        

	$28.00 per acre

 

Acreage is based upon net mineral acres owned and leased at the time the payment is due (subject to Article 5(b) below).

 

b.           Minimum. The AMR payments set forth in this Article 5 shall be due payable only if this Agreement is in effect on any anniversary date. Notwithstanding any partial surrender or termination pursuant to Article 13, in no event shall the AMR payment in any year be less than ten thousand dollars ($10,000.00).

 

  

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5.2           Recoupment. All AMR payments made to Owner shall be accumulated and be credited against and be subject to recoupment out of eighty (80) percent of Production Royalty specified in Article 6, with the remaining twenty (20) percent of Production Royalty being payable to Owner. Said right of recovery shall apply to the first such Production Royalty payments accruing and shall continue thereafter until GOLD STANDARD has recovered the full amount of allowable previously paid AMR payments. In no event shall the combined amount of AMR and Production Royalty actually paid to Owner in an annual period commencing on an Anniversary Date when recoupment is occurring be less than the amount stated in Article 5.1 (a). All AMR payments accruing subsequent to the first Production Royalty payment to Owner shall be recovered and deducted in a like manner from Production Royalty payments thereafter accruing. AMR payments not recouped by GOLD STANDARD from Production Royalty within ten (10) years after the AMR payment became due shall not be recoupable from subsequent Production Royalty. GOLD STANDARD shall pay when due the annual AMR payments to Owner due hereunder each and every year during the term of this Agreement.

 

  

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ARTICLE SIX

 

PRODUCTION ROYALTY

 

6.1       GOLD STANDARD shall pay to Owner a nonparticipating Production Royalty of five percent {5%} of Net Smelter Returns, as defined in Exhibit B attached hereto and incorporated by this reference, based upon Owner's net mineral ownership. By way of example, if Owner's net mineral ownership is an undivided twenty-five percent (25%), then the Production Royalty would be 1.25% of Net Smelter Returns. Calculation and payment of Production Royalty shall be made pursuant to Exhibit B.

 

All payments and royalties payable hereunder may be made by GOLD

STANDARD's check, and delivery thereof shall be deemed completed on the mailing

thereof by certified mail to Owner as follows:

THOMAS J. TOMERA AND

PATSY S. TOMERA,

TRUSTEES OF THE THOMAS J. TOMERA FAMILY TRUST

Hc65-11

Carlin, NV 89822

(SS# (Tom) ###-##-####, (Patsy) ###-##-####

ARTICLE SEVEN

 

WORK PLAN

 

7.1           GOLD STANDARD shall have sole discretion to determine the extent of its work, if any, on the Property and the time or times for beginning, continuing or resuming such work thereon. All activities carried out by GOLD STANDARD under this Agreement shall conform with the laws and regulations of the State of Nevada and the United States.

 

  

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ARTICLE EIGHT

 

TITLE CURE

 

8.1           Upon request, Owner shall make available such abstracts of title and other title records pertaining to the Property which Owner may have to aid GOLD STANDARD in any title searching it may wish to undertake. GOLD STANDARD may, but shall have no obligation to, investigate and cure as it sees fit any defects in title to the Property which Owner fails to remedy after notice by GOLD STANDARD. Owner shall cooperate fully with GOLD STANDARD in the curing of any such title defect, and GOLD STANDARD shall reimburse Owner for Owner's actual expenses resulting from its cooperation in this effort. All expenses incurred by GOLD STANDARD in this effort or incurred by Owner and reimbursed by GOLD STANDARD shall be taken as a credit by GOLD STANDARD against any production royalties payable hereunder to Owner in the same manner as AMR payments.

 

ARTICLE NINE

 

CROSS-MINING RIGHTS: COMMINGLING

 

9.1           Without limiting the generality of the rights granted in Article 2 above, Owner hereby grants GOLD STANDARD the right to mine or remove from the Property any ores, waste, or other materials existing therein or thereon, through or by means of shafts or openings which may be sunk or made upon adjoining or nearby property products of ores or material s from the Property upon stockpile grounds situated upon any such adjoining or nearby property owned or controlled by GOLD STANDARD; and GOLD STANDARD may use the Property and any shafts, openings thereon for the mining, removal and/or stockpiling of any ores, water and other materials and/or concentrated products of ores or materials from any such adjoining or nearby property, or for any purpose or purposes connected therewith, not, however, permanently preventing the mining or removal of ore from the Property. GOLD STANDARD shall make appropriate arrangements with the owner of the surface estate and/or water rights prior to removal and discharge of water from the Property.

 

  

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9.2           GOLD STANDARD may commingle ore from the Property with ore from other properties, either before or after concentration or beneficiation, so long as the data to determine the weight and assay, both of the ore removed from the Property and of other ores to be commingled, are obtained by GOLD STANDARD. GOLD STANDARD shall use that weight and assay data to allocate the royalties from the commingled ore between the Property and other properties from which the other commingled ore was removed. All such weight, assay and allocation calculations by GOLD STANDARD shall be done in a manner recognized by the mining industry as practical and sufficient.

 

  

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ARTICLE TEN

 

RECORDS; INSPECTION

 

10.1           GOLD STANDARD's records of all mining operations on the Property pertinent to computation of royalties shall be available for Owner's inspection upon reasonable advance notice and during normal business hours, but no more than once each quarter. Owner may enter the mine workings and structures on the Property at all reasonable times upon reasonable advance notice for inspection thereof, but Owner shall so enter at his own risk and shall indemnify and hold GOLD STANDARD harmless against and from any damage, loss or liability by reason of injury to Owner or his agents or representatives or damage to or destruction of any property of Owner or said agents or representatives while on the Property on or in said mine workings and structures. If GOLD STANDARD shall encounter any Excluded Substances in connection with its exploration operations on the Property, GOLD STANDARD shall supply Owner with copies of the factual non-interpretive data, and drill logs generated in connection with the discovery of such Excluded Substances as soon after such discovery as reasonably practical.

 

ARTICLE ELEVEN

 

TAXES

 

11.1           GOLD STANDARD shall pay all taxes assessed against any personal property which it may place on the Property and shall pay any taxes or increase in real property taxes assessed against the Property due to its operations thereon. Owner shall provide promptly to GOLD STANDARD copies of all documents relating to such taxes or increase in taxes. GOLD STANDARD may take such action, at its expense, as it deems proper to obtain a reduction or refund of taxes paid or payable to it, and Owner shall cooperate in such action, including but not limited to allowing such action to be taken and prosecuted in Owner's name. Owner shall pay all other taxes assessed against the Property, including all taxes assessed or payable at the time of the executing of this Agreement.

 

  

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ARTICLE TWELVE

 

LIENS

 

12.1           GOLD STANDARD shall keep the Property free of all liens for labor or materials furnished to it in its operations hereunder and shall indemnify and save harmless Owner against and from any damage, loss or liability by reason of injury to person or damage to property as the result of its operations hereunder, except as provided in Article 10 above. GOLD STANDARD may, but shall have no obligation to, contest the validity of any lien of the Property at its expense, and Owner shall cooperate in such contest, including but not limited to allowing such contest to be taken and prosecuted in Owner's name, and any such lien shall not be deemed a default unless finally adjudicated to be valid and not discharged by GOLD STANDARD.

 

12.2           Owner shall not be cause or allow any liens, encumbrances or adverse claims to accrue against the Property, except such as may have been expressly subordinated to this Agreement; and in the event any lien or encumbrance shall hereafter accrue against the Property by act or neglect of Owner, then GOLD STANDARD may, at GOLD STANDARD's option, pay and discharge the same, and if GOLD STANDARD elects so to do, GOLD STANDARD may deduct the amount so paid from any AMR or Production Royalties or other payments hereunder, together with interest thereon from the date or payment of said sums at the weighted average of prime rates throughout the year (as established by the Bank of America), subject to the application of any Nevada usury statute.

 

  

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ARTICLE THIRTEEN

 

TERMINATION

 

           13.1           GOLD STANDARD shall have the right at any time to terminate this Agreement upon written notice to Owner. GOLD STANDARD shall also have the right, from time to time, to release portions of the Property from this Agreement (hereinafter a "Partial Release"). GOLD STANDARD shall provide written notice to Owner of such Partial Release, which notice shall specify the property so released, which shall consist of a minimum of all property subject to this Agreement within a section of land. A Partial Release shall reduce the AMR payments as a function of the net mineral acres so released, provided however, that the minimum AMR payments as a function of the net mineral acres so released, provided however, that the minimum AMR payment pursuant to Article 5 of this Agreement shall not be less than ten thousand dollars ($10,000.00) during the term of this Agreement.

 

  

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13.2           Upon termination of this Agreement by GOLD STANDARD, or a Partial Release, as the case may be, all payments theretofore made to Owner shall be retained by Owner and all liabilities and obligations or GOLD STANDARD to Owner not then due or accrued shall cease and terminate, except any for all environmental conditions resulting from GOLD STANDARD's operations on the Property shall survive a termination or Partial Release. Within sixty (60) days of termination, or a Partial Release, as the case may be, GOLD STANDARD shall deliver to Owner a good and sufficient release and quitclaim to Owner that portion of the Property so terminated or released.

 

13.3           Upon termination of this Agreement, or Partial Release, as the case may be, GOLD STANDARD shall furnish Owner with a complete summary of the factual information obtained as a result of work done by GOLD STANDARD on the Property terminated or released, including, but not limited to, logs of all holes drilled thereon, ore values encountered, if any, analyses thereof and pertinent maps and surveys prepared by GOLD STANDARD in the course of such work. GOLD STANDARD makes no representation or warranty, expressed or implied, as to the accuracy of any information or data made.

 

ARTICLE FOURTEEN

 

DEFAULT

 

14.1           If GOLD STANDARD defaults in any of its obligations hereunder, Owner may give GOLD STANDARD written notice thereof specifying the defaults(s). GOLD STANDARD shall have thirty (30) days from receipt of such notice to cure the default unless it is of a nature that thirty (30) days is insufficient time in which to cure. In the latter event, GOLD STANDARD shall make substantial efforts to cure such default within the thirty (30) days, and shall continue such efforts until the default is cured. If GOLD STANDARD, in good faith disputes that a default has occurred, then GOLD STANDARD shall so advise Owner in writing giving all available reasons to support the position. Thereafter, if the parties continue to dispute the existence of a default, the matter may be resolved or determined by litigation in a court of competent jurisdiction, and the Parties shall have at their respective disposals all legal and equitable remedies allowed bylaw.

 

  

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ARTICLE FIFTEEN

 

FORCE MAJEURE

 

15.1     The terms of this Agreement may be extended or the Agreement terminated in the case of an event of force majeure in accordance with the following:

 

a.           The term of this Agreement shall be extended by any event of force majeure, and the obligations of GOLD STANDARD under this Agreement, except for the payment of money, shall be suspended and GOLD STANDARD shall not be deemed in default or liable for damages or other remedies while GOLD STANDARD is prevented from complying therewith by force majeure. For purposes of this agreement, force majeure shall include, but not be limited to: acts of God; the elements; acts of War, insurrection, riots or terrorism; strikes, lockouts and other labor disputes; inability to obtain or delay in obtaining necessary materials or permits, approvals or consents; damage to, destruction or unavoidable shutdown or necessary facilities or equipment; acts or failures to act on the part of local, state, federal or foreign governmental agencies or courts, or of Indian tribes; or any other matters (whether or not similar to those mentioned above, and whether foreseeable or unforeseeable) beyond GOLD STANDARD's reasonable control; provided, however that settlement of strikes, lockouts and other labor disputes shall be entirely within the discretion of GOLD STANDARD; and provided further that GOLD STANDARD shall promptly notify other parties to this Agreement and shall exercise diligence in an effort to remove or overcome the cause of such inability to comply.

 

  

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b.           In entering into this Agreement, the parties assume that GOLD STANDARD's access to the Property is and will continue to be unrestricted. GOLD STANDARD's reasonable belief that the actions or inactions of any local, state or federal governmental authority, might prevent or impede access to the Property, or otherwise limit GOLD STANDARD's ability to operate thereon, shall be considered an event of force majeure for purposes of this Agreement, and shall be referred to as an "access force majeure." If an access force majeure occurs, GOLD STANDARD shall resume operations on the Property within a reasonable time after access to the Property is no longer restricted, or to terminate this Agreement, without payment or penalty, if in GOLD STANDARD's sole discretion the Property shall be inaccessible or otherwise available for exploration during the current or subsequent field season. In determining "reasonableness," GOLD STANDARD shall be under no duty to contest the governmental agency or court action or inaction by protest, petition, appeal or any other means. The event of an access force majeure does not relieve GOLD STANDARD of the obligation to make payments under this Agreement.

 

  

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c.           Notwithstanding any event of force majeure as described in this Article 15 all AMR or Production Royalty payments required by this Agreement shall be timely paid in accordance with this Agreement.

 

ARTICLE SIXTEEN

 

SURRENDER OF PROPERTY

 

           16.1           In case of termination of this Agreement under the terms hereof or for any cause, GOLD STANDARD shall have no liability or obligation hereunder except for those, including reclamation obligations, already accrued at such date of termination. Upon such termination, GOLD STANDARD shall surrender the Property to Owner and shall deliver to them a written instrument in further evidence of such termination, in appropriate form for recording. GOLD STANDARD shall have the right but not the obligation, to remove from the Property all property belonging to or installed by it, including but not limited to machinery; equipment; buildings; structures; fixtures; ores, waste, and other materials; and concentrated products of ores or other materials (collectively, "Personal Property"). If GOLD STANDARD desires to abandon any Personal Property, GOLD STANDARD shall give Owner notice that Owner may elect to allow such Personal Property. In the event of a conflict between the terms of this Article 15 and any relevant surface use agreement then in effect, if any terms or provisions of the surface use agreement shall control as to GOLD STANDARD's obligations of reclamation and removal of property from the surface.

 

  

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ARTICLE SEVENTEEN

 

CHANGE IN OWNERSHIP

 

17.1           Changes in Owner's ownership of the Property or the rights to receive royalties hereunder occurring after delivery of this Agreement shall not be binding upon GOLD STANDARD until it shall receive written notice of such change, signed by Owner, together with a certified copy or photographic copy of the recorded documents reflecting such change. No change or division in the Owner's ownership of the Property, mineral interests or royalties hereafter accomplished shall operate to enlarge the obligations or diminish the rights of GOLD STANDARD hereunder.

 

ARTICLE EIGHTEEN

 

NOTICES

 

18.1           All notices hereunder shall be in writing and may be delivered by certified mail, or by personal delivery, and such mailing thereof, or personal delivery, shall be deemed the act of giving of notice. Such notices shall be addressed to Owner as follows:

 

  

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THOMAS J. TOMERA PATSY S. TOMERA

HC 65-11

Carlin, NV 89822

And to GOLD STANDARD, in duplicate, as follows:

GOLD STANDARD VENTURES (US) INC.

P. O. Box 1897

Elko, NV 89803

ARTICLE NINETEEN

USAGE

 

19.1           All defined terms as used herein include the plural, and reference to one gender includes the other and the plural when appropriate.

 

ARTICLE TWENTY

 

MEMORANDUM FOR RECORDING

 

20.1           Upon GOLD STANDARD's request, Owner shall execute a Memorandum of Mining Lease and Agreement covering the Property for purposes of recording. Owner shall not record this Agreement without GOLD STANDARD's prior written consent.

 

ARTICLE TWENTY ONE

 

ASSIGNMENT

 

21.1           Subject to Article 17, owner may assign its rights under this Agreement, in whole or in part, and this Agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors and assigns. GOLD STANDARD may assign this Agreement in whole or in part at any time to any other party with prior written consent of Owner, which consent shall not be unreasonable withheld, and such assignment shall, to the extent of such assignment, not relieve and discharge GOLD STANDARD of its obligations hereunder, unless the parties otherwise agree in writing. "Affiliate" shall mean a party controlling, controlled by or under common control with GOLD STANDARD.

 

  

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a.           COUNTERPARTS.                                  This Agreement may be executed in counterparts, each of which shall constitute an original and all of which, taken together, shall constitute a single agreement.

 

b.           U.S. DOLLARS. All DOLLAR amounts are in US currency.

 

c.           GOVERING LAW. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Nevada.

 

d.           ENTIRE AGREEMENT. This Agreement sets forth the entire understanding between the parties and may be modified or amended only in writing by an instrument signed by the party to be charged with such modification or amendment.

 

e.           ATTORNEY FEES.  GOLD STANDARD Resources shall pay all attorney fees incurred in preparing and negotiating the terms of this lease.

 

  

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GOLD STANDARD VENTURES (US) INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ David C. Mathewson	 
	 	 	DAVID C. MATHEWSON	 

 

  

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THOMAS J. TOMERA, as trustee of the Thomas J. Tomera Family Trust, PATSY S. TOMERA, as trustee of the Thomas J. Tomera Family Trust

	 
	 	 	 	 
	
 

	
By: 

	/s/ Thomas J. Tomera	 
	 	 	THOMAS J. TOMERA	 

 

 

	
 

	
By: 

	/s/ Patsy S. Tomera	 
	 	 	 PATSY S. TOMERA	 

 

 

  

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EXHIBIT A

Tom and Patsy Property- Undivided Mineral Estate Interest

 

	
Township 31 N Range 53 E Elko County, NV

	  	  
	  	
Gross Acres

	
Undivided mineral

	
Net Acres/Mineral

	  	  	
interest %

	
Acres

	
Section 15:  All

	
640

	
58.34

	
373.38 mineral acres

	  	  	  	  
	
Township 30 N Range 53 E

	  	  
	
Section 17: All

	
640 acres

	
41.667%

	
266.669 mineral acres

	
Section 9:  SW1⁄4

	
160 acres

	
41.667%

	
66.667 mineral acres

	
Section 9:  W1⁄2SE1⁄4

	
80 acres

	
8.334%

	
6.667 mineral acres

	
Section 9:  E1⁄2SE1⁄4

	
80 acres

	
8.334%

	
6.667 mineral acres

	  	  	
Tom and Patsy

	
720.05 mineral acres

	  	  	
Tomera

	
(approximately)

 

 

23Unassociated Document

EXHIBIT 4.14

SURFACE USE AGREEMENTWITH CONDITIONAL PURCHASE OPTION

This SURFACE ACCESS AND USE AGREEMENT (the “Agreement"), made and entered into as of this day 15thday of January,2011 (“Effective Date"), by and between Kevin Tomera, a married man dealing with his sole and separate property ("Tomera"), and GOLD STANDARD VENTURES (US) INC., a Nevada Corporation (“GOLD STANDARD”).

RECITALS

A.           Tomera, to the best of its knowledge, is the owner of the entire and undivided fee interest in the surface estate of certain lands in Townships 31 North, Range 53 East, and Township 30North, Range 53East, M.D.M., Elko County, Nevada as listed in Exhibit A ("Surface Tracts"), attached hereto, and by this reference made a part hereof.

B.           GOLD STANDARD currently controls or owns certain rights in and to the mineral estate in and under portions of the Surface Tracts. GOLD STANDARD may from time to time acquire additional mineral rights in and under a portion, or portions of the Surface Tracts.

C.           Tomera and GOLD STANDARD now wish to enter into this agreement (i) to grant GOLD STANDARD a general right of ingress and egress over, upon, and across Surface Tracts, (ii) to grant GOLD STANDARD the right to use the Surface Tracts in conduct of its mineral exploration, development and mining operations thereon, {iii} to further grant to GOLD STANDARD the conditional option to purchase portions of the Surface Tracts, all as further provided hereunder, so long as this Agreement shall remain in effect and (iv) to set forth the compensation to be paid to Tomera in consideration for the rights granted to GOLD STANDARD hereunder.

D.           This Agreement is not intended to, and does not in any way alter, amend or supersede any prior existing surface agreements, easements, or other agreements, as may relate to the Surface Tracts. This agreement relates only to GOLD STANDARD's access to, and use of the Surface Tracts, and does not define, alter or otherwise affect mineral ownership or royalty interests within or related to the Surface Tracts.

E.           GOLD STANDARD shall pay all attorney fees associated with the changing and signing of this lease.

 

  

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SECTION ONE

AGREEMENT

NOW, THEREFORE, in consideration of the premises and the mutual promises contained herein, Tomera and GOLD STANDARD hereby agree as follows:

1.1           Tomera owns the Surface Tracts, and warrants that, except for existing encumbrances of record, the Surface Tracts are not subject to any other agreement, encumbrance, adverse claim by third party, burden or restriction created by any act or instrument of Tomera that will affect in any material adverse manner the ability of Tomera to fully comply with the provisions of this Agreement.

1.2           The term of this Agreement shall begin with the date hereof and shall continue for TEN (10) years, and so long thereafter as GOLD STANDARD owns or controls other properties within a two mile radius of the Surface Tracts, unless sooner terminated as provided for herein.

1.3           As consideration for the continuance of this Agreement, GOLD STANDARD shall pay to Tomera an annual rental of FOUR DOLLARS AND FIFTY CENTS ($4.50) PER ACRE for each acre of land included in the Surface Tracts that are subject to this Agreement. At the Effective Date the parties estimate the number of acres that are subject to the Agreement to be approximately (2,053.23 acres). Annual rental shall be due on or before the annual anniversary of the Effective Date ("Anniversary Date"). Upon execution of the Agreement GOLD STANDARD shall make an initial payment to Tomera in the amount of NINE THOUSAND TWO HUNDRED THIRTY NINE DOLLARS and FIFTY FOUR CENTS($9,239.54), which calculation is based on the estimated acreage at the Effective Date. If it is determined that acreage owned by Tomera is less than, or more than, the estimated acreage above, any overpayment or under payment shall be adjusted for in the payment due on the first Anniversary Date. GOLD STANDARD may from time to time, release portions of the Surface Tracts from this Agreement, and the next annual rental payment shall be adjusted accordingly.

SECTION TWO

PAYMENT

2.1       In addition to the annual payment provided under Section 1.3 above, GOLD STANDARD shall compensate Tomera for surface disturbance directly resulting from GOLD STANDARD's operations conducted on the Surface Tracts as follows:

a.           A one time payment of FIFTEEN HUNDRED ($1,500.00) dollars for each drill site, including its associated access, as may be constructed by GOLD STANDARD on the Surface Tracts. A drill site may be up to 400 feet by 400 feet in dimension, and access 20 feet in width. Multiple holes may be drilled from any drill site without further compensation. If a drill site is abandoned, the drill site shall be reclaimed and all drill holes properly plugged.

 

  

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b.           For other surface disturbance that is directly attributable to GOLD STANDARD's activities, to the extent that the affected surface is taken out of productive ranching and grazing use, GOLD STANDARD shall compensate Tomera at the rate of $100.00 per acre, per year. GOLD STANDARD is further obligated to reclaim and to reseed all disturbed areas after appropriate contouring measures have been taken to prevent erosion. Such payments shall also be paid (as to the disturbed acreage) until vegetation is reasonably reestablished, not to exceed THREE (3)years after the aforesaid reseeding has been accomplished. These payments ­shall not apply to any acreage that becomes subject to ­purchase by GOLD STANDARD pursuant to Section 3 below.

SECTION THREE

USE AND PURCHASE

3.1       Subject to following, Tomera agrees to make available for GOLD STANDARD use and purchase:

a.           Subject to available capacity and water rights, and within Tomera's discretion, Tomera will make water available for GOLD STANDARD's use for exploration drilling. If such capacity is available and if (i) GOLD STANDARD elects to purchase water from Tomera and (ii) Tomera elects to make such water available, GOLD STANDARD shall pay Tomera at the rate of FIVE CENTS ($0.05) per gallon so purchased. Tomera shall cooperate with GOLD STANDARD in obtaining any necessary permits, waivers, or authorizations, as may be required by the Nevada State Engineer's Office to properly permit GOLD STANDARD's use of water supplied by Tomera. GOLD STANDARD shall be responsible for the cost of obtaining any necessary permits.

b.           For common variety construction materials as GOLD STANDARD may elect to purchase from Tomera, GOLD STANDARD shall pay Tomera at the rate of TWO AND A HALF ($2.50) dollars per ton of shale or rock, sand and gravel aggregate; and ONE ($1.00) dollar per ton for other surface non-mineral materials, such as soil, clay or other fill materials, used anytime in its operations. These payments shall not apply to materials obtained from acreage purchased by GOLD STANDARD.

 

  

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SECTION FOUR

SURFACE TRACTS

4.1            Prior to commencement of any development and mining operations, GOLD STANDARD shall be obligated to purchase from Tomera, and Tomera agrees to sell to GOLD STANDARD, so much of the Surface Tracts identified by a Mine Plan of Operations submitted to the appropriate regulatory agency, as is reasonably expected to be affected by GOLD STANDARD's development and mining operations. In connection with purchase of lands to be affected by development and mining operations, GOLD STANDARD shall have the right to use easements in which Tomera has rights and shall be granted easements by Tomera for a reasonable fee which are necessary for GOLD STANDARD to cross any Surface Tracts not otherwise affected by development or mining operations to access or provide utility service to the purchased lands. Surface Tracts or portions thereof required only for access and utility easements shall not be subject to purchase under this Section. GOLD STANDARD shall give Tomera written notice of the purchase and the portion of the Surface Tracts to be purchased shall be described to the nearest land parcel or legal subdivision as reasonably practicable. The purchase price shall be TWO THOUSAND ($2, OOO.OO) dollars per acre for each acre to be purchased.

4.2           The parties shall select a mutually acceptable escrow agent to close the purchase and sale transaction. Closing shall occur within NINETY (90) days after the notice given by GOLD STANDARD to Tomera, subject to any extension necessitated in order to obtain a title insurance policy, or any regulatory approvals. As conditions precedent to closing: (i) a commitment to insure title shall execute and deliver a good and sufficient Grant, Bargain, and Sale Deed conveying the purchased portion of the Surface Tracts to GOLD STANDARD. Concurrent with closing of the purchase and sale, the purchased lands shall no longer be subject to any payments under Sections 1 and 2 above.

4.3           Upon cessation of mining operations, regulatory agency approval of reclamation, closure, and final bond release, or at such other time as GOLD STANDARD may determine that some or all of the purchased Surface Tracts are no longer required for its mining operations, GOLD STANDARD shall offer to reconvey such portion(s) of the purchased Surface Tracts to Tomera, or its successors and assigns, at no cost to Tomera. Tomera shall have the right, but not the obligation, to accept reconveyance. Any reconveyance shall be made in its “AS-IS”condition, without any warranties of any nature whatsoever with respect to the quality or condition of the reconveyed land or its fitness for a particular purpose. However, GOLD STANDARD shall retain all liability for environmental conditions created by GOLD STANDARD on such Surface Tracts.

 

  

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If Tomera owns a lesser interest in the Surface Tracts than the entire surface estate, then any payment made as herein provided as to any such land affected by such lesser interest shall be proportionately reduced.

4.4           All use and occupancy of the Surface Tracts shall be at the sole risk of GOLD STANDARD. GOLD STANDARD covenants and agrees to indemnify and save harmless Tomera, its officers, directors, employees, shareholders and affiliates, from and against any and all losses, costs, damages, expenses, liability, claims, awards, demands, causes of action, and judgments for injury to, or death of, persons, and damage to or loss or destruction of, property caused by or resulting from the use or occupancy of the Surface Tracts, the route of the access roads, or the operations hereunder of GOLD STANDARD, its employees and agents.

4.5           GOLD STANDARD shall not allow the Surface Tracts to become subject to any mechanics of mining liens or other third party claims by reason of its activities hereunder, and GOLD STANDARD agrees to indemnify and save Tomera harmless from any liability or loss arising out of the same, including attorney's fees.

4.6           Surface Tracts may be released from or added to this Agreement as follows:

By giving written notice to Tomera, GOLD STANDARD may, at any time, release portions of the Surface Tracts from the provisions of this Agreement and release to Tomera all rights granted to GOLD STANDARD in such portions of the Surface Tracts so released. In the event of a partial release, then the annual rental payment due on the next Anniversary Date shall be calculated based on the number of acres remaining subject to the Agreement on that Anniversary Date. In the case of a partial release, this Agreement shall continue in full force and effect as to any portion or portions of the Surface Tracts no so released. GOLD STANDARD may terminate this Agreement in its entirety at any time in accordance with Section 9 below. GOLD STANDARD shall quitclaim to Tomera, within 60 days after notice of termination, all such Surface Tracts as to which this Agreement is so terminated.

SECTION FIVE

WATER

5.1           GOLD STANDARD shall notify Tomera if it encounters appreciable amounts of water in any of its exploration drill holes.  If GOLD STANDARD does not require or intend to develop and use such water for its operations, and intends to abandon such hole(s), GOLD STANDARD shall advise Tomera, and Tomera shall have the right to case the hole as a well and make application for appropriation of the water, at Tomera's expense, and Tomera shall thereafter, in all respects, be responsible for the well.

5.2           In conducting its drilling activities hereunder, GOLD STANDARD shall comply with all requirements of Nevada Revised Statutes regarding completion, plugging, and abandonment of drill holes. GOLD STANDARD shall cooperate with Tomera to undertake reasonable and necessary measures to minimize, as reasonably practicable, any potential effects of its exploration activities on Tomera's water supply(s), including proper hydrological supervision of drill operations.

 

  

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SECTION SIX

OPERATIONS

6.1           GOLD STANDARD shall conduct all operations in a professional and workmanlike manner, in accordance with industry standards, and comply with all applicable regulatory requirements. GOLD STANDARD shall conduct its operations as to minimize impact on Tomera's ranching operations to the extent reasonably practicable, and shall consult with Tomera before constructing access roads or drill sites, or performing other activities that would result in appreciable surface disturbance, or that would take surface lands out of productive use for purposes of Tomera's ranching operations. GOLD STANDARD shall take all reasonable precautions, in consultation with Tomera, to minimize potential for livestock loss, or any damage to Tomera's other personal or real property, including without limitation using due care to close all gate or to install cattle guards if heavy traffic persists, through which GOLD STANDARDpasses. GOLD STANDARD shall repair, replace or otherwise remedy all damages to any Tomerapersonal or real property caused by GOLD STANDARD's exploration operations conductedhereunder on the Surface Tracts. In the event that GOLD STANDARD fails to adequately repair, replace or remedy any such damage, it shall pay Tomera reasonable compensation for such damage. GOLD STANDARD shall cooperate with all reasonable security measures ofTomera, including the closing and locking of gates, and shall exercise its best efforts in the prompt reporting to Tomera of any observed damage to fences and other improvements. GOLD STANDARD shall reclaim any disturbed areas not required for continued operations, as soon as reasonable practicable in accordance with industry standards, regulatory requirements, and in consultation with Tomera, as to Tomera's desire to keep any of the constructed access open, and as to the type of seed mixture, and manner of seeding.

SECTION SEVEN

LICENSE

7.1           Subject to the terms and conditions of this Agreement, and during the term of this Agreement, Tomera grants to GOLD STANDARD a nonexclusive license to use, in common with Tomera and any other licensee authorized by Tomera, the existing roads within the Surface Tracts.

 

  

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SECTION EIGHT

FORCE MAJEURE

8.1           The term of this Agreement shall be extended by the duration of any event of force majeure, and the obligations of GOLD STANDARD under this Agreement, other than the payment of money, shall be suspended and GOLD STANDARD shall not be deemed in default or liable for damages or other remedies while GOLD STANDARD is prevented from complying therewith byforce of majeure. For purposes of this Agreement, force majeure shall include, but not be limited to, acts of God, the elements, riots, acts or failure to act on the part of federal or state agencies or courts, inability to obtain necessary permits, inability to secure materials or to obtain access to the Surface Tracts, strikes, lockouts, damage to, destruction or unavoidable shutdown of necessary facilities, or any other matters (whether or not similar to those above mentioned) beyond GOLD STANDARD's reasonable control, provided, however, that settlement of strikes or lockouts shall be entirely within the discretion of GOLD STANDARD; and provided, further, that GOLD STANDARD shall promptly notify Tomera thereof and shall exercise diligence in an effort to remove or overcome the cause of such event of force majeure. The obligation to make any and all payments required by this Agreement shall continue in full force, and shall not be suspended by any event of force majeure.

SECTION NINE

TERMINATION

9.1           GOLD STANDARD may terminate this Agreement at any time upon 30 days written notice to Tomera to that effect. Upon such notice given, this Agreement shall terminatewithout any further force or effect, except for those rights and obligations that survive termination, as expressly provided for herein, including without limitation the obligation to reclaim disturbed areas in accordance with applicable laws and regulations, and all obligations with respect to environmental conditions cause by GOLD STANDARD's operations on the Surface Tracts.

SECTION TEN

DEFAULT

10.1           If GOLD STANDARD defaults in any of its obligations hereunder, Tomera may give GOLD STANDARD written notice thereof and specify the default or defaults relied on. If GOLD STANDARD has not cured such default within 30 days, Tomera may terminate this Agreement by written notice to GOLD STANDARD; provided that if GOLD STANDARD shall dispute that any default has occurred, the matter shall be determined by litigation in a court of competent jurisdiction, and if the court shall find GOLD STANDARD in default hereunder, GOLD STANDARD shall have 30 days from receipt of notice of such award to cure such default, and if so cured, Tomera shall have no right to terminate this Agreement by reason of such default. Provided, however, that nothing in this Agreement shall be construed to prevent Tomera from exercising any rights or remedies at law or in equity for the breach of this Agreement, including without limitation specific performance, injunction or damages. The prevailing party in any lawsuit shall recover from the other party costs of the suit and reasonable attorney's fees incurred.

 

  

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10.2           Upon termination of this Agreement, whether by expiration of the term hereof, or by act of either party, GOLD STANDARD shall have a period of 180 days from and after the effective date of termination in which to remove from the Surface Tracts all of its machinery, facilities, equipment, and other property of every nature and description erected or situated thereon and to substantially complete reclamation. If GOLD STANDARD fails to remove any of its machinery, facilities, equipment, or other property of every nature and description within the allotted time, then any machinery, facilities, equipment, or other property shall belong to Tomera, unless a prior agreement has been made by the parties in writing to alter the effect of this Section 10. GOLD STANDARD shall restore and reclaim any surface disturbed hereunder in compliance with all applicable permits and permit requirements issued to GOLD STANDARD by governmental agencies. GOLD STANDARD shall be granted such access as is necessary and for so long as is necessary to inspect, maintain, repair, reseed or otherwise wholly complete reclamation sufficient to obtain closure of its permits and release of any reclamation bond posted with any governmental agency.

SECTION ELEVEN

NOTICES

11.1           All notices hereunder shall be in writing and may be delivered by certified mail, andsuch mailing thereof shall be deemed the act of giving of notice. Such mailed notices and any payments hereunder shall be addressed to Tomera as follows:

Kevin Tomera

HC-30-435 #1

Spring Creek, NV89815

And to GOLD STANDARD, in duplicate, as follows:

GOLD STANDARDVENTURES (US) INC.

P. O. Box 1897

Elko, NV89803

 

  

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SECTION TWELVE

ASSIGNMENT

12.1.    This Agreement shall be binding upon and inure to the benefit of the parties and their respective permitted successors and assigns.

a.           GOVERNING LAW.This Agreement shall be governed by the laws of the State of Nevada.

b.           U.S. DOLLARS.All currency is in US dollars.

c.           RECORDING.Neither party shall record this Agreement. Upon request, Tomera will execute a short form of this Agreement for purposes of recording.

d.           ENTIRE AGREEMENT.This Agreement constitutes the entire agreement between the parties relative to the subject matter hereof, and there is no other express or implied understanding, oral or written, relating to the subject matter of this Agreement.

IN WITNESS WHEREOF, the above parties have caused this Agreement to be properly executed] all as of the day and year first above written.

 

	 	

Kevin Tomera, a married man dealing with his sole and separate property

	 
	 	 	 	 
	
 

	
By: 

	/s/ Kevin Tomera	 
	 	 	Kevin Tomera	 

 

 

	 	

GOLD STANDARDVENTURES (US) INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ David C. Matthewson	 
	 	 	

DAVID C. MATTHEWSON

	 

 

 

  

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EXHIBIT A to Surface Lease

 

Kevin Tomera

 

 

	
Township 31 North, Range 53 East

	 
Elko County, Nevada

 

Section 19: All (Lots 1-4), containing 212.36 acres

 

Section 27: All, containing 640.00 acres

 

Section 29: All, containing 640.00 acres

 

Section 31:    Lots 1, 2, 3, containing 160.87 acres

 

Section 33:  W1⁄2; N1⁄2NE1⁄4, containing 400.00 acres

 

Total Acreage:  2,053.23 acres

 

 

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