Document:

EXHIBIT
      10.38

    WITS
      BASIN PRECIOUS MINERALS INC.

    SUBSCRIPTION
      AGREEMENT AND INVESTMENT REPRESENTATION

    

    UNITS
      OF COMMON STOCK AND WARRANTS

    

    Wits
      Basin Precious Minerals Inc.

    520
      Marquette Avenue, Suite 900

    Minneapolis,
      MN 55402

    

    Ladies
      and Gentlemen:

    

    The
      undersigned represents that, if an individual, he/she is of legal age, and
      hereby subscribes for _________________ “Units,” each Unit consisting of one (1)
      share of common stock, par value $0.01 per share (the “Common
      Stock”) of
      Wits
      Basin Precious Minerals Inc., a Minnesota corporation (the “Company”), and
      one-half (1⁄2) of one common stock purchase warrant (the “Warrants”). Each whole
      common stock purchase warrant is exercisable on or before December 31, 2006
      for
      one (1) share of common stock at a price of $0.25 per share (the “Warrants” and
      together with the Units, the “Securities”). The aggregate purchase price of the
      Securities shall be $ _________________ (the “Purchase Price”). The shares of
      Common Stock underlying the Units shall be referred to herein as the “Shares.”
Details of this Offering are in the Term Sheet, attached herewith as
Exhibit
      A.
      The
      undersigned acknowledges that this Subscription Agreement and Letter of
      Investment Representations is contingent upon the acceptance in whole or in
      part
      by the Company. 

    

    THE
      UNDERSIGNED ACKNOWLEDGES THAT AN INVESTMENT IN THE COMPANY IS HIGHLY
      SPECULATIVE, INVOLVES A HIGH DEGREE OF RISK AND IMMEDIATE DILUTION AND IS
      SUITABLE ONLY FOR PERSONS WHO CAN AFFORD TO LOSE THEIR ENTIRE
      INVESTMENT.

    

    This
      subscription is made in connection with the Company’s offering (the “Offering”)
      of a minimum of 1,000,000 Units (the “Minimum”) and a maximum of 20,000,000
      Units (the “Maximum”) and is subject to the following terms and
      conditions:

    

    1.  Right
      of Rejection.
      This
      subscription is made subject to the right of the Company to reject any
      subscription in whole or in part.

     

    2.  Purchase
      Price.
      In
      payment for the Units, the undersigned hereby delivers the sum equal to the
      number of Units purchased (must be purchased in even increments) multiplied
      by
      $0.10 (the “Purchase Price”). 

    

    
      
        	
              	3.	
                  Payment
                  Instructions: 

              

      

    

    

    
      	 	
              Payment
                for the Units shall be made by bank wire transfer, certified cheque,
                or
                bank draft (without deduction of bank service charges or
                otherwise)
                payable to “Wits
                Basin Precious Minerals Inc”
                in
                US Dollars. The entire subscription price for all Units must be paid
                at
                the time of subscription. In the case of a bank wire transfer, funds
                should be wired to:

            

    

    
    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              Bank:

            	 	
              Wells
                Fargo Bank Minneapolis, N.A., 90 So. 7th
                Street, Minneapolis, MN 55402

            
	
              Routing
                #:

            	 	
              121000248

            
	
              Account
                #:

            	 	
              XXXXXXXXXX

            
	
              Account
                Name:

            	 	
              Wits
                Basin Precious Minerals Inc.

            
	
              Bank
                Contact

            	 	
              John
                Hicks at 612.667.1619

            

    

     

    
      	
            	4.	
                Registration
                Instructions: 

            

    

    

    
      	 	
              The
                undersigned hereby directs that the certificates representing the
                Units
                shall be delivered as indicated above at the time of the closing
                and shall
                be registered as follows:

            

    

    

     

      
        

      

    

    (Name)

    

     

      
        

      

    

    (Address,
      City, Postal Code, Country)

    

    

    

    
      	
            	5.	
               
                Delivery Instructions. The
                Company is authorized to deliver the Units
                to:

            

    

     

     

    
      
        

      

    

    (Name)

      

    
      

    

    (Address,
      City, Postal Code, Country)

    

    Attention: 

    
      

    

      (Contact
      and Phone Number)

     

    

     

    6.  Representations
      and Warranties of Subscriber.
      The
      undersigned acknowledges, warrants, and represents as follows:

    

    
      
        	
              	(a)	
                I
                  have, either alone or with the assistance of my professional advisor,
                  sufficient knowledge and experience in financial and business matters
                  that
                  I believe myself capable of evaluating the merits and risks of
                  the
                  prospective investment in the
                  Units.

              

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              I
                have obtained, to the extent I deem necessary, professional advice
                with
                respect to the risks inherent in investment in the Units, the suitability
                of the investment in light of my financial condition and investment
                needs,
                and legal, tax and accounting
                matters.

            

    

    

    
      	 	
              (c)

            	
              I
                have been given access to full and complete information regarding
                the
                Company, including without limitation: (i) the Company’s Annual Report on
                Form 10-K for the year ended December 31, 2003 filed with the Securities
                and Exchange Commission (the “SEC”), (ii) the Company’s Quarterly Reports
                on Form 10-QSB for the quarters ended March 31, 2004 and June 30,
                2004,
                and (iii) the Company’s Current Reports on Form 8-K: dated February 6,
                2004 and filed on February 12, 2004; dated March 1, 2004 and filed
                on
                March 2, 2004; dated May 17, 2004 and filed on May 17, 2004; dated
                May 28,
                2004 and filed on June 4, 2004; dated June 10, 2004 and filed on
                June 14,
                2004; dated August 3, 2004 and filed on August 4, 2004; dated August
                30,
                2004 and filed on September 1, 2004; dated September 10, 2004 and
                filed on
                September 16, 2004; and dated October 13, 2004 and filed on October
                15,
                2004; and have utilized such access to my satisfaction to verify
                any
                information I may have sought relating to the Company and relevant
                to my
                investment decision. I have been given the opportunity to discuss
                all
                material aspects of this transaction with representatives of the
                Company
                and any questions asked have been answered to my full
                satisfaction.

            

    

    

    
      	 	
              (d)

            	
              I
                recognize that investment in the Units involves a high degree of
                risk,
                that the purchase of the Units is a long-term investment, that
                transferability and sale of the Units are restricted in many ways,
                and
                that I could sustain a total loss of my investment. I have carefully
                reviewed the Risk Factors in the Company’s Annual Report on Form 10-K, the
                Company’s Quarter Reports on Form 10-QSB and the additional Risk Factors
                attached hereto as Exhibit
                B.

            

    

    

    
      	 	
              (e)

            	
              I
                am an “Accredited Investor” as defined in Rule 501(a) of Regulation D
                promulgated under the Securities Act of 1933, as amended (the “Securities
                Act”). This representation is based on the following (check one or more,
                as applicable):

            

    

    

    
      	 	
              ___

            	
              (1)

            	
              I
                have had an individual income in excess of $200,000 in each of the
                two
                most recent years or joint income with my spouse in excess of $300,000
                in
                each of the two most recent fiscal years and reasonably expect reaching
                the same income level in the current year;
                or

            

    

    

    
      	 	
              ___

            	
              (2)

            	
              As
                of the date hereof, I (either individually or with my spouse) have
                a net
                worth in excess of $1,000,000; or

            

    

     

    
      
        	
                 

              	
                ___

              	
                (3)

              	
                I
                  am a director or executive officer of the Company;
                  or

              

      

       

    

    
      	 	
              ___

            	
              (4)

            	
              The
                undersigned is a corporation or partnership not formed for the specific
                purpose of acquiring the Units and has total assets in excess of
                $5,000,000. 

            

    

    

    
      	 	
              ___

            	
              (5)

            	
              The
                undersigned, if not an individual, is an entity all of whose equity
                owners
                meet one of the tests set forth in (1) through (4) above (if relying
                on
                this category alone, each equity owner must complete a separate copy
                of
                this Agreement).

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (f)

            	
              I
                have ____/have not _____ used the services of a purchaser representative
                in connection with this investment. If I have used a purchaser
                representative I have received a fully completed and executed Purchaser
                Representative Questionnaire.

            

    

    

    
      	 	
              (g)

            	
              I
                am not relying upon the Company with respect to the economic
                considerations involved in determining to make an investment in the
                Units.

            

    

    

    
      	 	
              (h)

            	
              I
                have no need for immediate liquidity with respect to my investments
                and
                have sufficient income to meet my current and anticipated obligations.
                The
                total loss of the Purchase Price being paid herewith would not cause
                financial hardship to me and would not adversely affect my current
                standard of living. In addition, my overall commitment to investments
                which are not readily marketable is not disproportionate to my net
                worth
                and my investment in the Units will not cause such overall commitment
                to
                become excessive.

            

    

    

    
      7.      
        Investment
        Purpose of Subscriber.
        I
        represent and warrant that it is my intention to acquire the Units for my
        own
        account for investment purposes and not with a view 
         
to
          resale in connection with any distribution thereof.

      

    

    

    In
      order
      to assure the Company that I have no present intention to resell or dispose
      of
      the Units, I hereby represent and warrant the following facts:

    

    
      	 	
              (a)

            	
              I
                am domiciled in the State of _____________ or Country of ______________
                and intend to receive and hold the Units for my personal
                account.

            

    

    

    
      	 	
              (b)

            	
              I
                have no contract, undertaking, agreement or arrangement with any
                person or
                company to sell or transfer the Units to any such person or company
                or to
                have any such person or company sell the Units on my
                behalf.

            

    

    

    
      	 	
              (c)

            	
              I
                am not aware of any occurrence, event, or circumstance upon the happening
                of which I intend to transfer or sell the Units and I do not have
                any
                present intention to transfer or sell the Units after a lapse of
                any
                particular period of time.

            

    

    

    
      	 	
              (d)

            	
              I
                have been informed that in the view of some state securities commissions,
                a purchase now with an intent to resell, by reason of any foreseeable
                specific contingency or anticipated change in market values, or any
                change
                in the condition of the Company, or that of the industry, or in connection
                with a contemplated liquidation or settlement of any loan obtained
                for the
                acquisition of the Units, would represent a purchase with an intent
                inconsistent with the representations set forth above, and that such
                state
                securities commissions might regard such sale or disposition as a
                deferred
                sale with regard to which an exemption from registration is not
                available.

            

    

    

    
      	 	
              (e)

            	
              I
                further represent and agree that if, contrary to the foregoing
                representations and warranties, I should later desire to dispose
                of or
                transfer any of the Units in any manner, I shall not do so without
                first
                obtaining an opinion of counsel satisfactory to the Company that
                such
                proposed disposition or transfer may be made lawfully without the
                registration of the Units pursuant to the Securities Act and applicable
                state laws.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    8.    
       Registration
      Status of Securities.
      I
      understand that the Units to be issued hereunder have not been registered under
      the Securities Act or under applicable state securities acts, on the grounds
      that the Units are being issued in a transaction involving a limited group
      of
      knowledgeable investors fully familiar with the affairs and proposed operations
      of the Company and not involving a public offering and that, consequently,
      such
      transaction is exempt from registration under the Securities Act and state
      securities acts.

    

    In
      that
      regard, I understand that the Units may not be sold, transferred or otherwise
      disposed of except pursuant to an effective registration statement or
      appropriate exemption from registration under applicable state law and, as
      a
      result, I may be required to hold the Units for an indefinite period of time.
      Except as described above, I understand that the Company has not agreed to
      register the Units for distribution in accordance with the provisions of the
      Act
      or state law, and that the Company has not agreed to comply with any exemption
      under the Act or state law for the resale of the Units.

    

    I
      understand that the Units have not been approved or disapproved by the
      Securities and Exchange Commission or any state securities commission.

    

    I
      acknowledge that the Company will rely on my representations herein as a basis
      for the exemption from registration. I agree to indemnify the Company for and
      from any claim, liability, cost or expense, including reasonable attorneys’
fees, arising from any unlawful sale by me or offer by me to sell or transfer
      any of the Units subscribed for hereby.

    

    I
      understand that no assurance can be made that any of the Units can be resold
      at
      any price. I understand that no representations or warranties of any kind are
      intended nor should any be inferred with respect to the economic viability
      of
      this investment or with respect to any benefits, which may accrue to investment
      in the Company. I understand that the Company, its directors, officers and
      employees, do not in any way represent, guarantee or warrant any economic gain
      or profit with regard to the business or that favorable income tax consequences
      will flow therefrom. 

    

    9.     
      Legend
      on Certificates to be Issued.
      I
      understand and acknowledge that the certificates representing the Shares and
      Warrants subscribed for hereby and to be issued by the Company upon acceptance
      of this Subscription Agreement, will contain substantially the following
      legend:

    

    “The
      Shares represented by this Certificate has not been registered under the
      Securities Act of 1933, as amended, or any state Blue Sky law. Such Shares
      have
      been acquired by the registered holder hereof for his or her own account for
      investment purposes and may not be sold, transferred or otherwise disposed
      of
      for value, except pursuant to registration under all applicable securities
      laws
      or the receipt by the Company of an opinion of counsel, satisfactory in form
      and
      substance to the Company, that registration is not required under such
      securities laws.”

    

    10.  
      Registration
      Rights.
      The
      Company agrees to file a “resale” registration statement (the "Registration
      Statement") with the United States Securities and Exchange Commission (“SEC”) on
      an appropriate form and to include therein the Common Stock included in the
      Units and the Common Stock purchasable by the undersigned upon the exercise
      of
      the Warrants, to allow the resale of such Securities by the undersigned, and
      to
      use its best efforts to cause the Registration Statement to become effective
      within ninety (90) days from the date of issuance of the Securities. In the
      event the Registration Statement has not been declared effective by the SEC
      within ninety (90) days following the termination of the Offering by the
      Company, the Company shall be obligated to reduce the exercise price of the
      Warrants from $0.25 per share to $0.10 per share. The
      Company shall bear all expenses and fees incurred in connection with the
      preparation, filing, and amendment of the Registration Statement with the
      Commission, except that the undersigned shall pay all fees, disbursements and
      expenses of any counsel or expert retained by the undersigned and all
      underwriting discounts and commissions, filing fees and any transfer or other
      taxes relating to the Securities included in the Registration Statement. The
      undersigned agrees to cooperate with the Company in the preparation and filing
      of any Registration Statement, and in the furnishing of information concerning
      the undersigned for inclusion therein, or in any efforts by the Company to
      establish that the proposed sale is exempt under the 1933 Act as to any proposed
      distribution. The undersigned understands that if the Company has not received
      such information requested by the Company in the Registration Notice within
      20
      days after undersigned’s receipt thereof, the Company shall have no obligation
      to include any of undersigned’s Securities in the Registration
      Statement.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    11.   
      Redemption.
      The
Warrants
      shall be redeemable in whole at the option of the Company for $0.01 per share
      in
      the event that (i) the average of the high and low trading prices is equal
      to or
      greater than $0.75 for at least 10 consecutive trading days during the term
      of
      the Warrants; and (ii) a registration statement enabling the resale of the
      Shares (as described in paragraph 8 above) has been declared effective by the
      Securities and Exchange Commission. The Company shall give the undersigned
      at
      least ten days prior written notice of its intent to redeem the Warrants, at
      the
      address of the undersigned as last recorded on the Company’s records, which
      notice shall state the record date fixed for the redemption and the place
      designated for the surrender of the Warrants. Following any such redemption,
      the
      Warrants, unless previously exercised, shall be null and void.

    

    12.   
      Additional
      Information Available.
      I
      acknowledge that the Company has provided me with access to such other
      information as I have deemed necessary or important in my evaluation of the
      investment in the Units.

    

    13.   
      Binding
      Effect.
      This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto and to the successors and assigns of the Company and to the personal
      and
      legal representatives, heirs, guardians, successors, and permitted assignees
      of
      the undersigned.

    

    14.   
      Entire
      Agreement.
      This
      instrument contains the entire agreement of the parties, and there are no
      representations, covenants or other agreements except as stated or referred
      to
      herein.

    

    15.   
      Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Minnesota.

     

    Signature
      and acceptance page follows

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    I
      further
      acknowledge that I have determined that an investment in the Units is
      appropriate for me, in view of my overall financial condition.

    

    Dated:
      ______________, 2004. 

     

    
      	 	 	 	 
	 	 	 	 
	
              
Signature	 	 	
              
Signature
	 	 	 	 
	 	 	 	 
	
              
Name
              Typed or Printed	 	 	
              
Name
              Typed or Printed

    

    

     ACCEPTANCE

    

    On
      behalf
      of Wits Basin Precious Minerals Inc., the undersigned authorized officer hereby
      accepts this Subscription and agrees to issue a certificate representing
      _________________ Units consisting of Shares of Common Stock and Warrants to
      the
      foregoing subscriber.

    

    Dated:
      __________________, 2004.

    

    WITS
      BASIN PRECIOUS MINERALS INC.

     

    

    By_____________________________________

    Name:__________________________________

    Title:___________________________________

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    SUBSCRIBER
      INFORMATION

     

    
      	 	 	 
	
              

              Name

            	 	
              

              Name 

            
	 	 	 
	 	 	 
	
              

              Tax
                Identification or Social Security Number

            	 	
              

              Tax
                Identification or Social Security Number

            
	 	 	 
	 	 	 
	
            	 	 
	
              

              

              
Residence
              Address	 	 
	 	 	 
	 	 	 
	
               

                

              

              
                

              

              
                

              

              Mailing
                Address (for registration 

              on
                books of the Company)

            	 	 

    

     

    

    Type
      of Ownership (Check One):

    

    
      	
              o

            	
              Individual
                Ownership

            	 	
              o

            	
              Joint
                Tenants with right of Survivorship

            
	 	 	 	 	 
	
              o

            	
              Trust
                or Estate (Describe, and enclose authority)

            	 	
              o

            	
              Tenants-in-Common
                (both parties must sign)

            
	 	 	 	 	 
	
              o

            	
              Other
                (explain):________________

            	 	 	 
	 	
              ____________________________

            	 	 	 

    

     

    
      
         

      

      
        8EXHIBIT
      10.39

     

    SUPPLEMENT
      TO

    WITS
      BASIN PRECIOUS MINERALS
      INC.

    SUBSCRIPTION
      AGREEMENT AND INVESTMENT REPRESENTATION

    

    UNITS
      OF COMMON STOCK AND WARRANTS

     

    Wits
      Basin Precious Minerals
      Inc.

    520
      Marquette Avenue, Suite 900

    Minneapolis,
      MN 55402

    

    Ladies
      and Gentlemen:

    

    This
      letter serves to supplement that certain Subscription Agreement and Investment
      Representation between Wits Basin Precious Minerals Inc. (the “Company”) and the
      undersigned, relating to the purchase of units consisting of common stock and
      warrants of the Company (as heretofore amended or supplemented, the
“Subscription Agreement”). Capitalized terms used herein and not otherwise
      defined shall have the meanings ascribed in the Subscription
      Agreement.

     

    1.
      Amendment
      of Registration Rights.
      The
      undersigned investor understands that in the event the Registration Statement
      (referred to in Section 10 of the Subscription Agreement, the “Registration
      Statement”) is not declared effective by the United States Securities and
      Exchange Commission (the “SEC”) within sixty (60) days following the termination
      of the Offering by the Company (following the final closing of the sale of
      the
      Units, the “Final Closing”), the Company shall be obligated to reduce the
      exercise price of the Warrants from $0.25 per share to $0.10 per share.

     

    2.
      Change
      in Unit Size.
      The
      undersigned investor further understands that in the event the Registration
      Statement is not declared effective by the SEC within sixty (60) days following
      the Final Closing of the Offering by the Company, the Company shall be obligated
      to promptly issue the undersigned an additional warrant, in form similar to
      the
      Warrants, allowing the purchase of one-half (1/2) of a share of Common Stock
      for
      each Unit purchased.

     

    The
      undersigned investor understands that, except as expressly modified by this
      Supplement, all other terms and provisions of the Subscription Agreement remain
      in full force and effect.

     

    Dated:
      _____________, 2004

     

    
      	 	 	 	 
	 	 	 	 
	
              
Signature 	 	 	
              
Signature
	 	 	 	 
	
              
Name
              Typed or Printed 	 	 	
              
Name
              Typed or Printed

    

         

    ACCEPTANCE

    

    On
      behalf
      of Wits
      Basin Precious Minerals
      Inc.,
      the undersigned authorized officer hereby accepts this Supplement to the
      Subscription Agreement. 

    

    Dated:
      __________________, 2004.

    

    WITS
      BASIN PRECIOUS MINERALS
      INC.

     

    
      	 	 	 	 	 
	By	 	 	 	 
	
              
                

              

              Name:

            	 	 	
            
	
              
                

              

              Title:

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