Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Nord Resources Inc. - Exhibit 10.3

SETTLEMENT AGREEMENT

THIS AGREEMENT is made effective October 18, 2006.

AMONG:

NORD RESOURCES CORPORATION, a
Delaware corporation, with an office at 1 West Wetmore Road, Suite 203, Tucson,
Arizona, 85705

(“Nord”)

AND:

TMD ACQUISITION CORPORATION, a
Tennessee corporation, with an address c/o 668 N. Coast Hwy, #171 Laguna Beach,
CA 92561 

(“TMD Acquisition”)

WHEREAS: 

	A. 	
      In May 2004, Nord commenced pursuing an opportunity (the
      “Opportunity”) to acquire assets comprising ASARCO Inc.’s
      (“ASARCO”) Tennessee Mines Division zinc business (the “Zinc
      Assets”);

	 	 
	B. 	
      As a result of Nord’s development efforts, ASARCO
      subsequently selected Nord as the primary candidate with whom ASARCO would
      negotiate the sale and purchase of the Zinc Assets, and presented Nord
      with a draft Asset Purchase Agreement in respect of the Zinc
  Assets;

	 	 
	C. 	
      In October, 2004, Nord entered into a secured bridge loan
      agreement with Regiment Capital III, L.P. (“Regiment Capital”), the
      terms of which prevented Nord from making an investment in, or undertaking
      any business with respect to, the Zinc Assets without the prior written
      consent of Regiment Capital. Regiment Capital informed Nord that it would
      not consent to the direct acquisition of the Zinc Assets by
Nord;

	 	 
	D. 	
      Pursuant to an Agreement of Assignment and Assumption
      dated October 14, 2004, Ronald Hirsch (“Hirsch”) and Stephen
      Seymour (“Seymour”) agreed to assist Nord in preserving the
      Opportunity and, in conjunction therewith Hirsch and Seymour entered into
      an Agreement of Option and Right of First Refusal dated October 14, 2004
      with Nord;

	 	 
	E. 	
      Hirsch and Seymour subsequently assigned their interest
      and right to acquire the zinc business to TMD Acquisition, a corporation
      formed by Hirsch and Seymour to facilitate an asset purchase agreement
      dated March 21, 2005 (the “Acquisition Agreement”) with
    ASARCO;

- 2 -

	F. 	
      On August 2, 2005, ASARCO purported to terminate the
      Acquisition Agreement and subsequently filed for relief under Chapter 11
      of the United States Bankruptcy Code;

	 	 
	G. 	
      TMD Acquisition has disputed ASARCO’s position that the
      Acquisition Agreement has been terminated, but was advised in May 2006
      that the Zinc Assets have been sold at auction;

	 	 
	H. 	
      Nord believes that the Zinc Assets were a property of
      potential merit, and is desirous of preserving Nord’s right of action (the
      “ASARCO Claim”) against ASARCO and ASARCO’s trustee in
      bankruptcy;

	 	 
	I. 	
      As there are no longer any restrictions imposed by Nord’s
      current lender in respect of the Zinc Assets, Nord and TMD Acquisition
      have agreed that Nord will take an assignment of the Acquisition
      Agreement, will reimburse certain of the expenses incurred by TMD
      Acquisition and will assume certain accounts payable owing by TMD
      Acquisition in the preservation of the Opportunity; and

	 	 
	J. 	
      In order to assist TMD Acquisition in the payment of its
      legal costs to preserve the Opportunity, Nord lent the aggregate sum of
      $50,000 to TMD Acquisition.

THIS AGREEMENT WITNESSES that in consideration of the
premises and of the sum of $10 and other good and valuable consideration now
paid by each of the parties to the others (the receipt and sufficiency of which
are hereby acknowledged by the parties), the parties covenant and agree
that;

Zinc Assets

1. TMD Acquisition will, pursuant to an Assignment and
Assumption Agreement substantially in the form attached hereto as Schedule A,
assign to Nord, an affiliate (as defined under the Acquisition Agreement) of TMD
Acquisition, all of its right, title and interest under the Acquisition
Agreement.

2. Nord will reimburse TMD Acquisition for certain expenses
(the “TMD Expenses”) in the aggregate amount of $365,000 (as set out in
Section 3) and hereby absolutely and unconditionally assumes and accepts
responsibility for the payment of certain of TMD Acquisition’s accounts payable
in the aggregate amount of $101,442 (more particularly described in Schedule B),
all of which Nord acknowledges have been properly incurred by TMD Acquisition to
preserve the Opportunity for Nord.

	3. 	
      Nord will reimburse the TMD Expenses, upon the earlier
      of

	 	 	 
		(a) 	
      December 22, 2006, and

	 	 	 
		(b) 	
      the closing date of

	 	 	 
			
      (i) a registered equity offering and/or a debt project
      financing (collectively or separately, a “Funding”) in which Nord
      raises not less than the aggregate amount of $25,000,000,
  or

- 3 -

	 	(ii) 	
      a significant corporate transaction (a “Significant
      Transaction”) in which

	 	 	 	 
	 		(A) 	
      any person, together with all affiliates and associates
      of such person, becomes the beneficial owner, directly or indirectly, of
      securities of Nord representing 51% or more of the common shares Nord,
      or

	 	 	 	 
	 		(B) 	
      there is a sale, lease, exchange or other transfer (in
      one transaction or a series of transactions contemplated or arranged by
      any party as a single plan) of all or substantially all of the assets of
      Nord or of assets of Nord valued at $12,000,000 or
  greater,

provided that:

(c) if the maturity date of Nord’s
$4,900,000 loan facility with Nedbank Limited (“Nedbank”) is extended, Nord and
TMD Acquisition agree to negotiate an extension to Section 3(a) above in good
faith; and

(d) if prior to the reimbursement in
full by Nord of the TMD Expenses, Nord receives any cash payment in full or
partial settlement of the ASARCO Claim, Nord will, within five business days
following receipt, remit such portion of the cash payment to TMD Acquisition as
will be required to fully pay the outstanding balance of the TMD Expenses. For
greater certainty, this paragraph 3(d) will apply to successive payments
received by Nord in respect of the ASARCO Claim until the TMD Expenses have been
reimbursed in full.

4. TMD Acquisition acknowledges that the aggregate amount of
$50,000 lent by Nord (evidenced by demand promissory notes dated February 27,
2006 and May 8, 2006, respectively, each in the principal amount of $25,000) is
currently outstanding and is payable to Nord on demand. Nord and TMD Acquisition
agree that the sum of $50,000 will be set-off against the expenses to be
reimbursed to TMD Acquisition pursuant to Section 2 above.

Notice

5. Any notice, waiver or other document (each a
“Notice”) required or permitted to be given pursuant to this Agreement
will be deemed to be well and sufficiently given if in writing and delivered by
hand or transmitted by facsimile as follows:

	 	(a) 	if to Nord, at: 
	 	  	  
	 	  	1 West Wetmore Road, Suite 203 
	 	 	Tucson, Arizona, 85705 
	 	  	Fax: (520) 292-0268 
	 	  	Attn: John Perry 
	 	  	  
	 	(b) 	if to TMD Acquisition, at: 
	 	  	  
	 		668 N. Coast Hwy. #171 
	 	 	Laguna Beach, CA 92561
  

- 4 -

Fax: (949) 715-6746 
Attention:
Ronald Hirsch

or at such other address or facsimile number as the party to
whom the Notice is to be given shall have last notified the party giving the
same in the manner provided in this paragraph. A Notice given or sent as
aforesaid will be deemed conclusively to have been effectively given and
received on the day it is hand delivered or transmitted by facsimile if it is
delivered or transmitted before 4:00 p.m. on a day that is not a Saturday,
Sunday or statutory holiday in the State of Arizona (a “Business Day”) or
on the next day that is a Business Day in any other case.

Governing Law

6. This Agreement will be exclusively governed by, and
interpreted and construed in accordance with, the laws prevailing in the State
of Arizona. The parties irrevocably and unconditionally attorn to the exclusive
jurisdiction of the courts of the State of Arizona and all courts having
appellate jurisdiction thereover.

Further Assurances

7. Each party will execute and deliver such further agreements
and other documents and do such further acts and things as another party
reasonably requests to evidence, carry out or give full force and effect to the
intent of this Agreement.

Time of the Essence

8. Time is of the essence in the performance of each obligation
under this Agreement.

Severability

9. If any provision of this Agreement is at any time
unenforceable or invalid for any reason, it will be severable from the remainder
of this Agreement and, in its application at that time, this Agreement will be
construed as though such provision was not contained herein and the remainder
will continue in full force and effect and be construed as if this Agreement had
been executed without the invalid or unenforceable provision.

Amendments

10. This Agreement may not be amended except in writing signed
by all parties.

Assignment

11. This Agreement and the individual rights and obligations
hereunder may not be transferred or assigned in whole or in part by any party
without the consent of the other party, which consent will not be unreasonably
withheld or delayed, and any purported transfer or assignment without such
consent will be null and void.

- 5 -

Enurement

12. This Agreement and the provisions hereof will enure to the
benefit of and be binding upon the parties and their respective successors and
permitted assigns.

Entire Agreement

13. This Agreement constitutes the entire agreement between the
parties, and supersedes every previous agreement, communication, expectation,
negotiation, representation or understanding, whether oral or written, express
or implied, statutory or otherwise between the parties, with respect to the
subject matter of this Agreement. Nothing in this Section 13 will limit or
restrict the effectiveness and validity of any document with respect to the
subject matter of this Agreement that is executed and delivered
contemporaneously with or pursuant to this Agreement.

Counterparts

14. This Agreement may be executed in any number of
counterparts, in original form or by facsimile, each of which will together, for
all purposes, constitute one and the same instrument, binding on the parties,
and each of which will together be deemed to be an original, notwithstanding
that each party is not a signatory to the same counterpart.

IN WITNESS WHEREOF this Agreement has been executed by
the parties effective as of the day and year first above written.

	NORD RESOURCES CORPORATION 	TMD ACQUISITION CORPORATION 
	  	  	  	  
	  	  	  	  
	Per: 	/s/ John
      T. Perry 	Per: 	/s/ Stephen
      D. Seymour 
	  	John Perry, Senior Vice President 	  	Stephen Seymour, Director 

SCHEDULE A 
ASSIGNMENT AGREEMENT

THIS AGREEMENT is made effective October 18, 2006

BETWEEN:

NORD RESOURCES CORPORATION, a
Delaware corporation, with an office at 1 West Wetmore Road, Suite 203, Tucson,
Arizona, 85705

(“Nord”)

AND:

TMD ACQUISITION CORPORATION, a
Tennessee corporation, with an address c/o 668 N. Coast Hwy, #171 Laguna Beach,
CA 92561

(“TMD Acquisition”)

WHEREAS:

	A. 	
      In May 2004, Nord commenced pursuing an opportunity (the
      “Opportunity”) to acquire assets comprising ASARCO Inc.’s
      (“ASARCO”) Tennessee Mines Division zinc business (the “Zinc
      Assets”);

	 	 
	B. 	
      As a result of Nord’s development efforts, ASARCO
      subsequently selected Nord as the primary candidate with whom ASARCO would
      negotiate the sale and purchase of the Zinc Assets, and presented Nord
      with a draft Asset Purchase Agreement in respect of the Zinc
  Assets;

	 	 
	C. 	
      In October, 2004, Nord entered into a secured bridge loan
      agreement with Regiment Capital III, L.P. (“Regiment Capital”), the
      terms of which prevented Nord from making an investment in, or undertaking
      any business with respect to, the Zinc Assets without the prior written
      consent of Regiment Capital. Regiment Capital informed Nord that it would
      not consent to the direct acquisition of the Zinc Assets by
Nord;

	 	 
	D. 	
      Pursuant to an Agreement of Assignment and Assumption
      dated October 14, 2004, Hirsch and Seymour agreed to assist Nord in
      preserving the Opportunity and, in conjunction therewith Hirsch and
      Seymour entered into an Agreement of Option and Right of First Refusal
      dated October 14, 2004 with Nord;

	 	 
	E. 	
      Hirsch and Seymour subsequently assigned their interest
      and right to acquire the zinc business to TMD Acquisition, a corporation
      formed by Hirsch and Seymour to facilitate an asset purchase agreement
      dated March 21, 2005 (the “Acquisition Agreement”) with
    ASARCO;

- 2 -

	F. 	
      On August 2, 2005, ASARCO purported to terminate the
      Acquisition Agreement and subsequently filed for relief under Chapter 11
      of the United States Bankruptcy Code;

	 	 
	G. 	
      TMD Acquisition has disputed ASARCO’s position that the
      Acquisition Agreement has been terminated, but was advised in May 2006
      that the Zinc Assets have been sold at auction;

	 	 
	H. 	
      Nord believes that the Zinc Assets were a property of
      potential merit, and is desirous of preserving Nord’s right of action
      against ASARCO and ASARCO’s trustee in bankruptcy;

	 	 
	I. 	
      As there are no longer any restrictions imposed by Nord’s
      current lender in respect of the Zinc Assets, Nord and TMD Acquisition
      have agreed that Nord will take an assignment of the Acquisition Agreement
      and all other agreements, rights and obligations related thereto (the “TMD
      Agreement”); and

	 	 
	J. 	
      TMD Acquisition wishes to assign all of its rights and
      obligations under the TMD Agreement to Nord and Nord wishes to assume all
      of TMD Acquisition’s rights and obligations under the TMD
  Agreement.

NOW THEREFORE THIS AGREEMENT WITNESSES THAT in
consideration of the premises and of the mutual covenants and agreements
hereinafter contained, the parties hereto agree as follows:

1. Effective October 18, 2006 (the “Effective Date”) all of TMD
Acquisition’s rights and obligations under the TMD Agreement including without
limitation, any and all claims and causes of action which TMD has or may have
against ASARCO, ASARCO’s bankruptcy estate, ASARCO’s parents, subsidiaries or
affiliates and ASARCO’s directors and officers.

2. Nord covenants and agrees that from and after the Effective
Date it will perform all of the duties and obligations on the part of TMD
Acquisition to be performed under the TMD Agreement.

3. This Agreement shall enure to the benefit of and be binding
upon the parties hereto and their respective successor and assigns.

4. The parties will execute all such further and other
documents or assurances as may be required in order to carry out the terms of
this Agreement.

5. This Agreement shall be governed by and in accordance with
the laws of the State of Arizona.

- 3 -

6. This Agreement may be executed in counterparts, which
together shall constitute one instrument. Delivery of an executed copy of this
Agreement by electronic facsimile transmission or other means of electronic
communication capable of producing a printed copy will be deemed to be execution
and delivery of this Agreement as of its effective date.

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

	NORD RESOURCES CORPORATION 	TMD ACQUISITION CORPORATION 
	  	  
	Per: ______________________________________________________________	Per:
      ______________________________________________________________
	             Authorized
      Signatory 	         
       Authorized Signatory 

SCHEDULE B 
ACCOUNTS PAYABLE

	August Law Group 	$	 15,979 	 	 
	 	 	 	 	 
	Erland Anderson 	$	 1,302 	 	 
	 	 	 	 	 
	Lang Michener LLP 	$	 2,374 	 	 
	 	 	 	 	 
	Roscoe Postle 	$	 78,727 	 	 
	 	 	 	 	 
	Visani Law 	$	 3,060 	 	 
	 	 	 	 	 
	Total Accounts Payable 	 	  	 	 
	     to be Assumed
      	$	101,442Filed by Automated Filing Services Inc. (604) 609-0244 - Nord Resources Corporation - Exhibit 10.4

ASSIGNMENT AGREEMENT

THIS AGREEMENT is made effective October 18, 2006

BETWEEN:

NORD RESOURCES CORPORATION, a
Delaware 
corporation, with an office at 1 West Wetmore Road, Suite 203,

Tucson, Arizona, 85705

(“Nord”)

AND:

TMD ACQUISITION CORPORATION, a
Tennessee 
corporation, with an address c/o 668 N. Coast Hwy, #171 
Laguna
Beach, CA 92561

(“TMD Acquisition”) 

WHEREAS:

	 	A. 	
      In May 2004, Nord commenced pursuing an opportunity (the
      “Opportunity”) to acquire assets comprising ASARCO Inc.’s
      (“ASARCO”) Tennessee Mines Division zinc business (the “Zinc
      Assets”);

	 	 	 
	 	B. 	
      As a result of Nord’s development efforts, ASARCO
      subsequently selected Nord as the primary candidate with whom ASARCO would
      negotiate the sale and purchase of the Zinc Assets, and presented Nord
      with a draft Asset Purchase Agreement in respect of the Zinc
  Assets;

	 	 	 
	 	C. 	
      In October, 2004, Nord entered into a secured bridge loan
      agreement with Regiment Capital III, L.P. (“Regiment Capital”), the
      terms of which prevented Nord from making an investment in, or undertaking
      any business with respect to, the Zinc Assets without the prior written
      consent of Regiment Capital. Regiment Capital informed Nord that it would
      not consent to the direct acquisition of the Zinc Assets by
Nord;

	 	 	 
	 	D. 	
      Pursuant to an Agreement of Assignment and Assumption
      dated October 14, 2004, Hirsch and Seymour agreed to assist Nord in
      preserving the Opportunity and, in conjunction therewith Hirsch and
      Seymour entered into an Agreement of Option and Right of First Refusal
      dated October 14, 2004 with Nord;

	 	 	 
	 	E. 	
      Hirsch and Seymour subsequently assigned their interest
      and right to acquire the zinc business to TMD Acquisition, a corporation
      formed by Hirsch and Seymour to facilitate an asset purchase agreement
      dated March 21, 2005 (the “Acquisition Agreement”) with
    ASARCO;

	 	F. 	
      On August 2, 2005, ASARCO purported to terminate the
      Acquisition Agreement and subsequently filed for relief under Chapter 11
      of the United States Bankruptcy Code;

	 	 	 
	 	G. 	
      TMD Acquisition has disputed ASARCO’s position that the
      Acquisition Agreement has been terminated, but was advised in May 2006
      that the Zinc Assets have been sold at auction;

	 	 	 
	 	H. 	
      Nord believes that the Zinc Assets were a property of
      potential merit, and is desirous of preserving Nord’s right of action
      against ASARCO and ASARCO’s trustee in bankruptcy;

	 	 	 
	 	I. 	
      As there are no longer any restrictions imposed by Nord’s
      current lender in respect of the Zinc Assets, Nord and TMD Acquisition
      have agreed that Nord will take an assignment of the Acquisition Agreement
      and all other agreements, rights and obligations related thereto (the “TMD
      Agreement”); and

	 	 	 
	 	J. 	
      TMD Acquisition wishes to assign all of its rights and
      obligations under the TMD Agreement to Nord and Nord wishes to assume all
      of TMD Acquisition’s rights and obligations under the TMD
  Agreement.

NOW THEREFORE THIS AGREEMENT WITNESSES THAT in
consideration of the premises and of the mutual covenants and agreements
hereinafter contained, the parties hereto agree as follows:

1.                    
Effective October 18, 2006 (the “Effective Date”) all of TMD Acquisition’s
rights and obligations under the TMD Agreement including without limitation, any
and all claims and causes of action which TMD has or may have against ASARCO,
ASARCO’s bankruptcy estate, ASARCO’s parents, subsidiaries or affiliates and
ASARCO’s directors and officers.

2.                     
Nord covenants and agrees that from and after the Effective Date it will perform
all of the duties and obligations on the part of TMD Acquisition to be performed
under the TMD Agreement.

3.                     
This Agreement shall enure to the benefit of and be binding upon the parties
hereto and their respective successor and assigns.

4.                     
The parties will execute all such further and other documents or assurances as
may be required in order to carry out the terms of this Agreement.

5.                     
This Agreement shall be governed by and in accordance with the laws of the State
of Arizona.

6.                     
This Agreement may be executed in counterparts, which together shall constitute
one instrument. Delivery of an executed copy of this Agreement by electronic
facsimile transmission or other means of electronic communication capable of
producing a printed copy will be deemed to be execution and delivery of this
Agreement as of its effective date.

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

		NORD RESOURCES CORPORATION 	 	 	TMD ACQUISITION CORPORATION 
	  	  	 	  	  
	Per: 	/s/
      John T. Perry 	 	Per: 	/s/
      Ronald A. Hirsch 
	  	Authorized Signatory 	 	 	Authorized Signatory 

SCHEDULE B 
ACCOUNTS PAYABLE

	August Law Group 	$	 15,979 	 
	Erland Anderson 	$	 1,302 	 
	Lang Michener LLP 	$	 2,374 	 
	Roscoe Postle 	$	 78,727 	 
	Visani Law 	$	 3,060 	 
	Total Accounts Payable 	 	  	 
	    to be
      Assumed 	$	101,442

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