Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Limited - Exhibit 10.8

PLEDGE, PRIORITIES AND DIRECTION AGREEMENT 

THIS AGREEMENT dated September 29, 2004. 

A M O N G: 

  
    
       RED MILE RESOURCES INC., in its capacity as general
        partner on behalf of all of the partners of RED MILE RESOURCES FUND
        LIMITED PARTNERSHIP, an Alberta limited partnership

       (the “Offering Partnership”) 

       - and - 

       WILSHIRE (GP) NO. 2 CORPORATION, in its capacity
        as general partner on behalf of all of the partners of RED MILE RESOURCES
        NO. 2 LIMITED PARTNERSHIP, a British Columbia limited partnership
      

       (the “Resource Partnership”) 

       - and - 

       GIBRALTAR MINES LTD., a corporation incorporated
        pursuant to the laws of the Province of British Columbia 

       (the “Resource Company”) 

       - and - 

       688888 B.C. LTD., a corporation incorporated
        pursuant to the laws of the Province of British Columbia 

       (the “Optionee”) 

       - and - 

       WILSHIRE FINANCIAL SERVICES INC, a corporation
        incorporated pursuant to the laws of the Province of Alberta 

       (the “Manager”) 

       - and - 

    

  

  
    
       ALBERTA CAPITAL TRUST CORPORATION, a corporation
        incorporated pursuant to the laws of the Province of Alberta 

       (“Alberta Trust “) 

       - and - 

       WILSHIRE (GP) NO. 2 CORPORATION, a corporation
        incorporated pursuant to the laws of the Province of British Columbia
      

       (the “Resource General Partner”)
      

       - and - 

       RED MILE RESOURCES INC., a corporation incorporated
        pursuant to the laws of the Province of Alberta 

       (the “Offering General Partner”)
      

       - and - 

       ALL OF THE LIMITED PARTNERS OF THE OFFERING PARTNERSHIP,
        represented by the Offering General Partner pursuant to a power
        of attorney 

       (the “Limited Partners”) 

    

  

	 A.      	 Pursuant to an interim loan agreement (the “Loan
        Agreement”), dated as of September 28, 2004, between Alberta
        Trust and the Offering Partnership, Alberta Trust has agreed to establish
        a loan facility (the “Interim Loan”) in favour of the
        Offering Partnership, to be advanced in tranches from time to time, to
        assist the Offering Partnership, inter alia, in financing the acquisition
        of limited partnership units in the capital of the Resource Partnership.
      

	 
	 B.      	 Pursuant to loan applications (the “Investor
        Loan Agreements”) accepted by Alberta Trust, Alberta Trust has
        agreed to advance loans (the “Investor Loans”) to the
        Limited Partners in connection with their subscription for limited partnership
        units in the capital of the Offering Partnership pursuant to an offering
        memorandum dated June 15, 2004, (the Interim Loan and the Investor Loans
        together with all interest and other sums accrued thereon, shall be hereinafter
        referred to as the “Indebtedness”). 

	 
	 C.      	 The Resource Partnership wishes to use part of the
        proceeds from the issuance of its limited partnership units to the Offering
        Partnership to pay amounts owing to the Resource Company on account of
        a purchase of a royalty interest in certain mining properties (the “Royalty
        Interest”). 

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	 D.      	 Pursuant to the terms of a royalty agreement among
        the Resource Company, the Resource Partnership and the Offering Partnership
        governing the Royalty Interest (the “Royalty Agreement”),
        the Resource Company is obliged to make certain payments (the “Basic
        Royalty”) to the Resource Partnership on account of the Royalty
        Interest. 

	 
	 E.      	 The Resource Partnership has agreed to make annual
        distributions to the Offering Partnership as the Resource Partnership’s
        sole limited partner, of all cash available for distribution by the Resource
        Partnership pursuant to the terms and conditions of the limited partnership
        agreement (the “Resource Partnership Agreement”), governing
        the affairs of the Resource Partnership. 

	 
	 F.      	 Pursuant to the terms of the Royalty Agreement,
        the Resource Company may be required, under certain circumstances, to
        acquire from the Offering Partnership all of the Units of the Resource
        Partnership held by the Offering Partnership in exchange for the Put Purchase
        Price as such term is defined in the Royalty Agreement. 

	 
	 G.      	 Pursuant to the terms of a call option agreement
        (the “Call Option Agreement”) dated the date hereof
        among the Optionee, the Resource Partnership and the Offering Partnership,
        the Optionee is entitled, under certain circumstances, to acquire from
        the Offering Partnership all of the Units of the Resource Partnership
        held by the Offering Partnership or the Royalty Interest held by the Resource
        Partnership in exchange for the Call Purchase Price as such term is defined
        in the Call Option Agreement The Put Purchase Price and the Call Purchase
        Price are each hereinafter sometimes referred to as the “Option
        Purchase Price”. 

	 
	 H.      	 Pursuant to the terms of the investor loan put/call
        agreement, (the “Put/Call Agreement”), dated as of
        June 15, 2004, as amended September 29, 2004, between Alberta Trust and
        Manager, Alberta Trust is entitled under certain circumstances to require
        the Manager to acquire the Acquired Indebtedness (as such term is defined
        in the Put/Call Agreement) in exchange for which the Manager will be required
        to pay the Acquisition Price or the Accelerated Put Acquisition Price,
        as the case may be (as such terms are defined in the Put/Call Agreement).
        Pursuant to the terms of the Put/Call Agreement, the Manager has agreed
        to provide security to Alberta Trust to secure its obligations thereunder.
      

	 
	 I.      	 Pursuant to the terms of a funding agreement (the
        “Funding Agreement”) dated as of the date hereof, the
        Resource Company has agreed to advance funds to the Manager to assist
        the Manager in financing a portion of its obligations to Alberta Trust
        under the Put/Call Agreement and to provide security to Alberta Trust
        and to the Manager to secure such funding obligations. 

	 
	 J.      	 Pursuant to the funding pledge agreement dated as
        of the date hereof among the Resource Company, the Manager and Alberta
        Trust (the “Funding Pledge Agreement”), the Resource
        Company has: 

 3 

 

	 	(a)	advanced the sum of $68,172,380
        (the “Advance”) to Alberta Trust, in exchange for a
        promissory note, in the amount advanced, to be issued by Alberta Trust
        in the form attached as Schedule “A” hereto, (the “Promissory
        Note”); and 

	 	 	 	 
	 	(b)	granted a security interest
        in the Promissory Note in favour of: 

	 	 	 	 
	 	 	(i) 
	Alberta Trust (the “Alberta Trust Security
        Interest”); and 

	 	 	 	 
	 	 	(ii)
	Manager (the “Manager Security Interest”).
      

	 	 The Manager granted and assigned a security
        interest in the Manager Security Interest to Alberta Trust as security
        for its obligations pursuant to the Put/Call Agreement and the Funding
        Pledge Agreement (the “Second Alberta Trust Security Interest”).
      

	 
	 K.      	 In addition to the security interests
        in the Promissory Note in favour of Alberta Trust and Manager created
        under the Funding Pledge Agreement, by way of this Agreement: (a) the
        Resource Company wishes to grant the following additional security interests
        in the Promissory Note: (i) in favour of the Offering Partnership as security
        for the Resource Company’s obligations to pay the Put Purchase Price
        under the Royalty Agreement (the “Offering Partnership Security
        Interest”); and (ii) in favour of the Resource Partnership (the
        “Resource Partnership Security Interest”) as security
        for the Resource Company’s obligations to pay the Basic Royalty
        to the Resource Partnership under the Royalty Agreement; and (b) the Offering
        Partnership wishes to grant and assign a security interest in the Offering
        Partnership Security Interest to Alberta Trust as security for its obligations
        to repay the Interim Loan pursuant to the Loan Agreement (the “Third
        Alberta Trust Security Interest”). 

	 
	 L.      	 By way of this Agreement, the parties
        wish to establish the priority of the various security interests in the
        Promissory Note as follows: 

	 
	 	 (i)     
      
	 the Alberta Trust Security Interest; 

	 
	 	 (ii)      
	 the Second Alberta Trust Security Interest; 

	 
	 	 (iii)      
	 the Third Alberta Trust Security Interest; 

	 
	 	 (iv)      
	 the Manager Security Interest; 

	 
	 	 (v)      
	 the Offering Partnership Security Interest; and
      

	 
	 	 (vi)      
	 the Resource Partnership Security Interest. 

 NOW THEREFORE in consideration of the mutual covenants
  contained herein and other good and valuable consideration, the receipt and
  sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

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	 1.      	 Preamble and Paragraph References.
        Preamble to this Agreement shall form an integral part hereof. All
        references in this Agreement to paragraphs and subparagraphs refer to
        paragraphs and subparagraphs of this Agreement unless otherwise specified.
      

	 
	 2.      	 Payment Obligations. 

	 
	 	 The Resource Company hereby acknowledges
        its obligations to pay: (i) the Put Purchase Price to the Offering Partnership
        under the Royalty Agreement; and (ii) the Basic Royalty to the Resource
        Partnership under the Royalty Agreement, each in accordance with the terms
        and subject to the limitations of the Royalty Agreement. The Optionee
        hereby acknowledges its obligations to pay the Call Purchase Price to
        the Offering Partnership or the Resource Partnership under the Call Option
        Agreement in accordance with the terms and subject to the limitations
        of the Call Option Agreement. The Offering Partnership and the Resource
        Partnership hereby irrevocably authorize and direct the Resource Company
        and the Optionee to pay to Alberta Trust the Option Purchase Price (the
        “Option Purchase Price Payment”) which shall be dealt
        with in accordance with the terms and conditions hereof and the Resource
        Company and the Optionee hereby acknowledge and irrevocably accept such
        authorization and direction. The Resource Partnership hereby, irrevocably
        authorizes and directs the Resource Company to pay to Alberta Trust any
        amounts owing on account of the Basic Royalty owing to the Resource Partnership
        (the “Basic Royalty Payments”) on the date that the
        Basic Royalty Payment is payable (the “Basic Royalty Payment
        Date”) which shall be dealt with in accordance with the terms
        and conditions hereof and the Resource Company hereby acknowledges and
        irrevocably accepts such authorization and direction. 

	 
	 3.      	 (i) Offering Partnership Security Interest
        : 

	 
	 	 (a)     
      
	 Resource Company hereby grants the Offering Partnership
        Security Interest in the Promissory Note to the Offering Partnership as
        general and continuing collateral security for the performance of its
        obligations to pay the Option Purchase Price to the Offering Partnership
        pursuant to the Royalty Agreement. 

	 
	 	 (b)      
	 The Offering Partnership hereby appoints Alberta
        Trust as its agent for the purpose of the Offering Partnership Security
        Interest and directs Resource Company to deliver the Promissory Note to
        Alberta Trust in respect of the Offering Partnership Security Interest.
        Alberta Trust hereby accepts that appointment. 

	 
	 	 (c)      
	 The Offering Partnership hereby consents to Alberta
        Trust holding the Promissory Note. 

	 
	 	 (d)      
	 The Offering Partnership Security Interest shall
        be effective immediately upon Alberta Trust’s receipt of the Advance
        and the issuance of the Promissory Note. 

	 
	 	 	 Attachment of Offering Partnership Security Interest
        shall not be postponed. The Resource Company shall sign such further documentation
        which may be required to give effect to the Offering Partnership Security
        Interest. 

	 
	 	 (ii)     
      
	 Third Alberta Trust Security Interest 

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	 	 (a)     
      
	 As security for the repayment of the Interim Loan,
        the Offering Partnership hereby grants and assigns the Third Alberta Trust
        Security Interest to Alberta Trust; 

	 
	 	 (b)      
	 The Third Alberta Trust Security Interest shall
        be effective immediately upon Alberta Trust’s receipt of the Advance
        and the issuance of the Promissory Note. 

	 
	 	 	 Attachment of the Third Alberta Trust Security Interest
        shall not be postponed. The Offering Partnership shall sign such further
        documentation which may be required to give effect to the Third Alberta
        Trust Security Interest. 

	 
	 4.      	 Resource Partnership Security Interest.
      

	 
	 	 (a)      
	 Resource Company hereby grants the Resource Partnership
        Security Interest in the Promissory Note to the Resource Partnership as
        general and continuing collateral security for the performance of the
        obligations of Resource Company to pay the Basic Royalty to the Resource
        Partnership pursuant to the Royalty Agreement. 

	 
	 	 (b)      
	 The Resource Partnership hereby appoints Alberta
        Trust as its agent for the sole purpose of the Resource Partnership Security
        Interest and directs Resource Company to deliver the Promissory Note to
        Alberta Trust in respect of the Resource Partnership Security Interest.
        Alberta Trust hereby accepts that appointment. 

	 
	 	 (c)      
	 The Resource Partnership hereby consents to Alberta
        Trust holding the Promissory Note. 

	 
	 	 (d)      
	 The Resource Partnership Security Interest shall
        be effective immediately upon Alberta Trust ’s receipt of the Advance
        and the issuance of the Promissory Note. 

	 
	 	 	 Attachment of the Resource Partnership Security
        Interest shall not be postponed. The Resource Company shall sign such
        further documentation which may be reasonably required to give effect
        to the Security Interest in the Promissory Note. 

	 
	 5.      	 Acknowledgement of Priorities. For
        greater certainty, the parties confirm that the security interests created
        in the Funding Pledge Agreement and in this Agreement shall be in the
        following order of priority: 

	 	 	(i) 	the Alberta Trust Security Interest; 
	 	 	 	 
	 	 	(ii) 	the Second Alberta Trust Security Interest; 
	 	 	 	 
	 	 	(iii)	the Third Alberta Trust Security Interest; 
	 	 	 	 
	 	 	(iv) 	the Manager Security Interest; 
	 	 	 	 
	 	 	(v)	 the Offering Partnership Security Interest; and 
	 	 	 	 
	 	 	(vi) 	the Resource Partnership Security Interest. 

 6 

 

	 	 Notwithstanding any other term hereof
        or of the Funding Pledge Agreement, each of the parties hereto acknowledges
        and agrees that Alberta Trust has full discretion with respect to the
        use of the proceeds of the Advance, including without limitation, the
        repayment of any indebtedness that Alberta Trust may have from time to
        time. 

	 
	 6.      	 Royalty Notice. The Resource Company
        confirms that it is required pursuant to the Royalty Agreement to prepare
        and deliver to the Resource Partnership with a copy to the Offering Partnership
        pursuant to the Option Agreement, on an annual basis commencing on February
        1, 2005, an annual statement in the form attached hereto as Schedule
        “B” (a “Royalty Notice ”) stating the
        amount of the Basic Royalty payable by Resource Company in that year.
        On or before the Royalty Payment Date (as defined in the Royalty Agreement)
        and in any year in which such Royalty Notice provides that amounts are
        due and payable to the Resource Partnership in respect of the Basic Royalty,
        the Resource Company shall prepare and deliver to Alberta Trust a copy
        of the Royalty Notice. 

	 
	 7.      	 Option Notice. Upon the exercise
        by the Optionee of its call rights under the Call Option Agreement or
        by the Offering Partnership of its put rights under the Royalty Agreement,
        the Offering Partnership or the Resource Partnership shall deliver to
        Alberta Trust a copy of the call notice (a “Call Notice”)
        received by it from the Optionee in the event that the call is exercised
        or a copy of the put notice (a “Put Notice”) given
        by it to the Resource Company in the event the put is issued specifying
        the Option Purchase Price and the date that the Option Purchase Price
        is payable (the “Option Payment Date). For the purposes of
        this Agreement, each of the Royalty Notice, Call Notice and Put Notice
        are referred to hereafter as a “Notice”. 

	 
	 8.      	 Disbursement of Note Proceeds. In
        the event that the Offering Partnership, the Resource Partnership or the
        Resource Company delivers or is deemed to have delivered a Notice pursuant
        to paragraphs 6 or 7 of this Agreement, as the case may be, the parties
        to this Agreement hereby irrevocably direct and authorize Alberta Trust
        to perform the following functions (provided that the Resource Company’s
        and the Optionee’s authorization and direction is limited to paragraph
        (a) below): 

	 
	 	 (a)      
	 notwithstanding the provisions of paragraph
        17, on the applicable Basic Royalty Payment Date or Option Payment Date
        (hereinafter referred to as a “Payment Date”), to make
        payments on account of the amount owing under the Promissory Note to the
        extent of: 

	 
	 	 	 (i)     
      
	 the amount by which the amount owing on such date
        by the Resource Company to the Resource Partnership in respect of the
        Basic Royalty as provided for, or deemed provided for, in the Royalty
        Notice on the applicable Payment Date, exceeds Basic Royalty Payments
        received by Alberta Trust by 12:00 noon on such date; or 

	 
	 	 	 (ii)      
	 the amount by which amounts owing by the Resource
        Company or the Optionee to the Offering Partnership or the Resource Partnership
        in respect of the Option Purchase Price exceeds the Option Purchase Price
      

 7 

 

	 	 	  	Payments received by Alberta Trust by 12:00 noon
        on the applicable Payment Date; 

	 
	 	 	 such payment on account of the Promissory
        Note shall be referred to herein as the “Note Proceeds”;
      

	 
	 	 (b)      
	 to utilize the proceeds of the Basic Royalty
        Payments and/or Option Purchase Price Payment paid to Alberta Trust hereunder
        and/or the Note Proceeds (such proceeds of the Basic Royalty Payments,
        Option Purchase Price Payment and/or the Note Proceeds, being hereinafter
        referred to as the “Proceeds”) for the following purposes
        and in the following order of priority: 

	 
	 	 	 (i)     
      
	 in the event that there are amounts owing in respect
        of the Indebtedness, to pay the Proceeds to itself in respect of the Indebtedness
        on behalf of the Limited Partners or the Offering Partnership as the case
        may be; and 

	 
	 	 	 (ii)      
	 in the event the Indebtedness as it relates to any
        particular Limited Partner shall be, on the applicable Payment Date less
        than such Limited Partner’s pro rata share of the Proceeds
        (such difference herein referred to as the “Limited Partner’s
        Differential”), to pay such Limited Partner’s portion
        of the Indebtedness as required under subparagraph 8(b)(i) from such Limited
        Partner’s pro rata share of the Proceeds and distribute such
        Limited Partner’s Differential to such Limited Partner or as such
        Limited Partner may direct in respect of his or her respective share;
        and 

	 
	 	 (c)      
	 in the event that subparagraph 8(b)(i)
        shall be applicable and there shall remain owing to Alberta Trust any
        residual Indebtedness in respect of any Limited Partner or the Offering
        Partnership after the payments therein contemplated, Alberta Trust shall
        be and remain entitled to exercise all of its rights, remedies and recourses
        under the Investor Loan Agreement relating to such Limited Partner and
        the promissory note issued thereunder, and hereunder in respect of such
        residual Indebtedness. 

	 
	 9.      	 Attribution of Payments. It is
        hereby acknowledged by the parties hereto (provided that the Resource
        Company’s acknowledgement is limited to subparagraph (a)(i) below)
        that: 

	 
	 	 (a)      
	 Each of the payments made from time to
        time pursuant to paragraph 8 in respect of Basic Royalty Payments shall
        be attributed to and deemed paid on account of the following payments
        in the following order of priority and shall satisfy each of the obligations
        incurred thereby: 

	 
	 	 	 (i)      
	 a payment by the Resource Company to the Resource
        Partnership on account of the Basic Royalty, payable under the Royalty
        Agreement; 

	 
	 	 	 (ii)      
	 a distribution by the Resource Partnership to the
        Offering Partnership, as the Resource Partnership’s sole limited
        partner, pursuant to the terms and conditions of the Resource Partnership
        Agreement; and 

 8 

 

	 	 	(iii) 
	a distribution by the Offering Partnership to the
        Limited Partners pursuant to the terms and conditions of the limited partnership
        agreement governing the affairs of the Offering Partnership. 

	 
	 	 (b)      
	 Each of the payments made pursuant to
        paragraph 8 in respect of the Option Purchase Price shall be attributed
        to and deemed paid on account of the following payments in the following
        order of priority and shall satisfy each of the obligations incurred thereby:
      

	 
	 	 	 (i)      
	 the payment by the Resource Company to the Offering
        Partnership in respect of the Put Purchase Price under the Royalty Agreement
        or the payment by the Optionee of the Call Option Price under the Call
        Option Agreement. 

	 
	 	 	 (ii)      
	 a distribution by the Offering Partnership to the
        Limited Partners pursuant to the terms and conditions of the limited partnership
        agreement governing the affairs of the Offering Partnership. 

	 
	 10.      	 Payment on Account of Obligations.
        With respect to payments in accordance with subparagraph 8(a)(ii)
        or 8(b) only, the endorsement or transfer by Alberta Trust of the Promissory
        Note, or an undivided interest therein, or a cancellation or reduction
        of the amounts owing under the Promissory Note shall be deemed to be a
        payment of Note Proceeds and the parties to this Agreement irrevocably
        authorize Alberta Trust to make an internal payment on the applicable
        Payment Date by transferring the Note Proceeds from itself in its capacity
        as pledgee to itself on its own behalf and attributing the Note Proceeds
        on account of the payments set forth in subparagraph 8(a)(ii) or 8(b)
        hereof. To the extent that the Promissory Note is endorsed, transferred
        or assigned in accordance with the provisions of subparagraph 8(a)(ii)
        or 8(b) and applied in accordance with subparagraph 9(b), it is acknowledged
        by the parties hereto that the amount endorsed, transferred or assigned
        shall be applied on account of the Option Purchase Price and the Resource
        Company or the Optionee, as the case may be, shall be deemed to have satisfied
        its obligations to pay the Option Purchase Price Payments under the Royalty
        Agreement or the Option Agreement, as the case may be. For greater certainty,
        any transfer or endorsement of the Promissory Note shall be without any
        representation and warranty whatsoever as to the validity, enforceability
        or perfection of the Promissory Note or the security interest created
        therein. For greater certainty, under no circumstances may the Promissory
        Note be endorsed, transferred or otherwise assigned for the purposes of
        making any payment on account of the Basic Royalty. 

	 
	 11.      	 Acknowledgement of Release. The
        Resource Partnership and the Offering Partnership hereby acknowledge that,
        in the event that all or part of the Note Proceeds are paid and distributed
        in satisfaction of the Resource Company’s obligations under the
        Funding Pledge Agreement, the promissory note issued by the Manager to
        Resource Company shall be treated in the same manner as the Promissory
        Note. Manager hereby acknowledges and agrees that the obligations of the
        Resource Company under the Funding Agreement and the Funding Pledge Agreement
        shall be reduced by an amount equal to any Note Proceeds paid and distributed
        pursuant to the terms of this Agreement 

 9 

 

	 	 and agrees to release any interest it has in the
        Note Proceeds in accordance with this Agreement. 

	 
	 12.      	 Notification of Claims. Each of the Resource
        Company, the Offering General Partner and the Resource General Partner
        shall notify Alberta Trust in writing of any claim or cause of action
        (in the case of the Resource Company, related to the Resource Company)
        referred to in paragraph 8 of this Agreement within five business days
        of receipt of notice of such claim or cause of action and provide to Alberta
        Trust full particulars thereof provided that the failure to do so shall
        not constitute a breach hereunder. 

	 
	 13.      	 Release. Subject to paragraph 16, upon the
        disbursement of all of the Proceeds, Alberta Trust shall be fully released
        by all of the parties hereto from any and all liability or obligation
        which Alberta Trust may have assumed or incurred pursuant to this Agreement.
      

	 
	 14.      	 Other Claims. Each of the parties hereto,
        other than Alberta Trust, on its own behalf, hereby covenants not to assert
        any lien, encumbrance or other claim with respect to the Promissory Note
        except as expressly provided herein. 

	 
	 15.      	 Limitation of Liability. Alberta Trust shall
        not be liable for any error of judgment or for any act done or step taken
        or omitted by it in good faith or for any mistake of fact or law or for
        anything which it may do or refrain from doing in connection with its
        holding of the Promissory Note hereunder except its own or its employees’
        wilful misconduct, gross negligence or fraud, including, without limitation,
        in acting upon any written notice, request, waiver, consent, receipt or
        other paper or document signed by a party or parties purporting to be
        the proper party or parties. For greater certainty, the parties hereby
        confirm and agree that Alberta Trust shall not be held liable for any
        inaccuracy or error contained in any Notice or confirmation delivered
        or deemed delivered pursuant to this Agreement and shall not be held liable
        for any amounts paid and distributed in reliance thereon. 

	 
	 16.      	 Indemnity. The parties hereto jointly and
        severally hereby covenant and agree to indemnify and hold Alberta Trust
        harmless against any loss, liability or expense incurred by Alberta Trust
        as a consequence of its acting pursuant to the terms of this Agreement
        and, except for the gross negligence or bad faith of Alberta Trust or
        its servants or agents in connection with the administration of its duties
        hereunder, such indemnification shall include, without limitation, the
        costs and expenses of its defence against any claim or liability in connection
        therewith, including reasonable legal costs. For greater certainty, the
        foregoing shall not extend to any obligations of Alberta Trust as debtor
        under the Promissory Note. 

	 
	 17.      	 Disputes. With the exception of paragraph
        8, in the event of any disagreement between any of the parties to this
        Agreement, or between them or any of them and any other person, resulting
        in demands or claims being made in connection with or for any asset involved
        herein or affected hereby, Alberta Trust shall be entitled, at its discretion,
        to refuse to comply with any demands or claims on it, as long as such
        disagreement shall continue, and in so refusing Alberta Trust may make
        no delivery or other disposition of 

 10 

 

	 	 any asset involved herein or affected
        hereby, and in so doing Alberta Trust shall not be or become liable in
        any way or to any person or party for its failure or refusal to comply
        with such conflicting demands or claims, and it shall be entitled to continue
        so to refrain from acting and so to refuse to act until the right of the
        person or party shall have been finally adjudicated in a court assuming
        and having jurisdiction over the asset involved herein or affected hereby,
        or all differences shall have been adjusted by agreement and Alberta Trust
        shall have been notified thereof in writing signed by all persons and
        parties interested. For greater certainty, the foregoing shall not extend
        to any obligations of Alberta Trust as debtor under the Promissory Note.
      

	 
	 18.      	 Other Agreements and Waiver: 

	 
	 	 (a)     
      
	 Alberta Trust is not a party to, and is not bound
        by, any agreement which may be evidenced by, or arise out of any appointments,
        directions and authorizations contained herein other than as expressly
        set forth herein. 

	 
	 	 (b)      
	 Alberta Trust is not a party to, and is not bound
        by, the Royalty Agreement, the Option Agreement or the Funding Agreement.
      

	 
	 19.      	 Notices. All notices given hereunder
        must be in writing and may be delivered by personal delivery or by pre-paid,
        registered or certified mail, or by telecopier or facsimile to the following
        address or to such other address or addresses as the parties hereto advise
        the other parties in writing from time to time and shall be deemed received
        three days after mailing by registered or certified mail, and on the first
        business day after delivery by telecopier or facsimile transmission: 

	 	 To the Resource Company:  	 To Manager:  
	 	  	 
	 	 Gibraltar Mines Limited  	 Wilshire Financial Services Inc.  
	 	 1020 – 800 W. Pender St.  	 920, 1040 W. Georgia  
	 	 Vancouver, British Columbia  	 Vancouver, British Columbia  
	 	 V6C 2V6  	 V6E 4H1  
	 	  	 
	 	 Attention:           
       President  	 Attention:             Robert
      C. Strother  
	 	 Facsimile No.:      
      (604) 681-2741  	 Facsimile No.:       (604) 669-9845 
    
	 	  	 
	 	 with a copy to:  	 and:  
	 	  	 
	 	 Lang Michener LLP  	 Attention:             Michael
      Simonetta  
	 	 1500 Royal Centre  	 Facsimile No.:       (416) 920-1947 
    
	 	 P.O. Box 11117  	  
	 	 1055 West Georgia Street  	  
	 	 Vancouver, British Columbia  	  
	 	 V6E 4N7  	  
	 	  	 
	 	 Attention:           
       Bernard J. Zinkhofer  	  
	 	 Facsimile No.:      
      (604) 893-2395  	  

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	 To Alberta Trust:  	 To the Offering General Partner:  
	 Alberta Capital Trust Corporation  	 Red Mile Resources Inc.  
	 10665 Jasper Avenue  	 620- 1001 13th Avenue S.W.  
	 Suite 1300, First Edmonton Place  	 Calgary, Alberta  
	 Edmonton, Alberta T5J 3S9  	 T2R 0L5  
	 Attention:             President 
    	 Attention:             President 
    
	 Facsimile No.:       (780) 424-3631 
    	 Facsimile No.:       (604) 669-9485 
    
	  	 
	 With a copy to:  	 To the Resource General Partner:  
	 Gowling Lafleur Henderson LLP  	 Wilshire (GP) No. 2 Corporation  
	 1400 Scotia Centre  	 920, 1040 W. Georgia  
	 700-2nd Street S.W.  	 Vancouver, British Columbia  
	 Calgary, Alberta T2P 4V5  	 V6E 4H1  
	 Attention:             Richard
      Myers  	 Attention:             Robert
      C. Strother  
	 Facsimile No.:       (403) 263-9193 
    	 Facsimile No.:       (604) 669-9845 
    
	  	 
	 To the Optionee:  	  
	 688888 B.C. Ltd.  	  
	 1020 – 800 W. Pender St.  	  
	 Vancouver, British Columbia  	  
	 V6C 2V6  	  
	 Attention:             President 
    	  
	 Facsimile No.:       (604) 681-2741 
    	  

	 20.      	 Relationship of the Parties. The relationship
        of each party to the other parties as established by this Agreement is
        that of an independent contractor and nothing contained in this Agreement
        shall be construed to constitute the parties as joint venturers, partners,
        co-owners or otherwise as participants in a joint undertaking or constitute
        any party hereto as an agent, fiduciary, legal representative or employee
        of any other party hereto. All financial and other obligations associated
        with the business of any party are the sole responsibility of such party.
      

	 
	 21.      	 Assignment. This Agreement shall not be assigned
        by any of the parties hereto. This Agreement shall enure to the benefit
        of and be binding upon each of the parties hereto and their respective
        successors and legal assigns. 

 12 

 

	 22.      	 Governing Law. This Agreement shall be governed
        by and construed and in force in accordance with the law of the Province
        of Alberta and the law of Canada applicable therein. 

	 
	 23.      	 Counterparts. This Agreement may be executed
        in counterparts, each of which shall be deemed an original and all of
        which, taken together, shall constitute one and the same instrument. Delivery
        of an executed counterpart of this Agreement by facsimile shall be equally
        effective as delivery of a manually executed counterpart thereof. Any
        party delivering an executed counterpart by facsimile shall also deliver
        a manually executed counterpart of this Agreement, but failure to do so
        shall not affect the validity, enforceability, or binding effect hereof.
      

	 
	 24.      	 Severability. Any provision of this Agreement
        which is invalid, illegal or unenforceable in any jurisdiction shall,
        as to that jurisdiction, be ineffective to the extent of such invalidity
        or illegality or unenforceability, without affecting in any way the remaining
        provisions hereof in such jurisdiction or rendering that or any other
        provision of this Agreement invalid, illegal or unenforceable in any other
        jurisdiction. 

	 
	 25.      	 Choice of Jurisdiction. Each of the parties
        hereto irrevocably consents and agrees that any legal action or proceeding
        against it or any of its property with respect to this Agreement or any
        other agreement executed in connection herewith may be brought in Alberta
        and by the execution and delivery of this Agreement, each party hereto
        hereby accepts with regard to any such action or proceeding for itself
        or with respect to its property, generally and unconditionally, the jurisdiction
        of the applicable jurisdiction. 

	 
	 	 Nothing herein shall affect the right of any party
        to serve process in any other manner permitted by law or to commence legal
        proceedings or otherwise proceed against any other party in any other
        jurisdiction. 

	 
	 26.      	 Time of Essence. Time shall be of the essence
        in this Agreement. 

	 
	 27.      	 Gender. In this Agreement, the masculine
        gender shall include the feminine and the singular shall include the plural
        and vice-versa. 

	 
	 28.      	 Currency. Unless otherwise expressly stated,
        any reference herein to any sum of money shall be construed as a reference
        to lawful currency of Canada. 

	 
	 29.      	 Further Assurances. Each party shall execute
        and deliver such other documents or instruments as may be necessary or
        desirable to evidence, give effect to or confirm this Agreement, and any
        of the terms and conditions hereof. 

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 13 

 IN WITNESS WHEREOF, the parties hereto have executed
  this Agreement as of the date first mentioned above. 

	 	 RED MILE RESOURCES INC.,
        in its capacity as general partner on behalf of all of the partners of
        RED MILE RESOURCES FUND LIMITED PARTNERSHIP

	 	 	  
	 	 	 
	 	By:  
	 
	 	 	 Authorized Signing Officer  

	 	 	  
	 	 	  
	 	 WILSHIRE (GP) NO. 2 CORPORATION,
        in its capacity as general partner on behalf of all of the partners of
        RED MILE RESOURCES NO. 2 LIMITED PARTNERSHIP

	 	 	  
	 	 	  
	 	By:  
	 
    
	 	 	 Authorized Signing Officer  

	 	 	  
	 	 	  
	 	 GIBRALTAR MINES LTD. 
      

	 	 	  
	 	 	 
	 	By:  
	 
	 	 	 Authorized Signing Officer  

	 	 	  
	 	 	  
	 	 WILSHIRE FINANCIAL SERVICES
        INC.  

	 	 	  
	 	 	 
	 	By:  
	 
	 	 	 Authorized Signing Officer  

	 	 	  
	 	 	  
	 	By:  
	 
    
	 	 	 Authorized Signing Officer  

 14 

 

	 	 ALBERTA CAPITAL TRUST
        CORPORATION  

	 	 	 
	 	 	 
	 	By:  
	  
	 	 	 Authorized Signing Officer  
	 	 
	 	 
	 	 
	 	 WILSHIRE (GP) NO. 2 CORPORATION 
      

	 	 	 
	 	 	 
	 	By:  
	   
	 	 	 Authorized Signing Officer  
	 	 	 
	 	 	 
	 	 	 
	 	 RED MILE RESOURCES INC. 
      

	 	 	 
	 	 	 
	 	By:  
	  
	 	 	 Authorized Signing Officer  
	 	 
	 	 
	 	 
	 	 ALL OF THE LIMITED PARTNERS
        OF THE OFFERING PARTNERSHIP, by the General Partner, pursuant
        to a power of attorney

	 	 	 
	 	 	 
	 	By:  
	  
	 	 	 Authorized Signing Officer  
	 	 
	 	 
	 	 
	 	 688888 B.C. LTD. 
      

	 	 	 
	 	 	 
	 	By:  
	  
	 	 	 Authorized Signing Officer  

 15 

 Schedule A

  PROMISSORY NOTE

 Due Date: December 10, 2014 

 FOR VALUE RECEIVED, the undersigned, Alberta Capital Trust
  Corporation, a corporation incorporated pursuant to the laws of the Province
  of Alberta (“Alberta Trust”), having its offices at 10665
  Jasper Avenue, Suite 1300, First Edmonton Place, Edmonton, Alberta T5J 3S9,
  hereby acknowledges having received from Gibraltar Mines Ltd, a corporation
  incorporated pursuant to the laws of the Province of Alberta (the “Resource
  Company”), the sum of $68,172,380 (the “Advance”).
  Alberta Trust promises to pay to, or to the order of, the Resource Company at
  1020 – 800 W. Pender St., Vancouver, British Columbia,V6V 2V6 or at such
  other place as the Resource Company may designate, the principal amount of the
  Advance in accordance with and at such times as are stipulated in the funding
  pledge agreement (the “Funding Pledge Agreement”) among inter
  alia, the Resource Company and Alberta Trust, dated September 29, 2004,
  but in no event, later than December 10, 2014 (the “Maturity Date”).

                Alberta
  Trust promises to pay interest, at a rate of six percent (6%) per annum calculated
  daily and compounded on December 30 in 2004 and February 15 of every year thereafter,
  to be payable by cheque in arrears in instalments on or before February 15,
  2005 and on or before February 15th of each year thereafter, until
  and including February 15, 2014, plus one final instalment due and payable by
  cheque on the Maturity Date as specified in the Funding Pledge Agreement. 

                Alberta
  Trust hereby waives all grace periods, presentment, demand, notice of non-payment,
  protest, notices of protest and all other formalities with respect hereto. 

                This
  promissory note is the promissory note referred to in the Funding Pledge Agreement.
  All capitalized terms used herein, which are not otherwise defined, shall have
  the meanings ascribed thereto in the Funding Pledge Agreement.

                The
  promissory note may not be assigned, transferred, endorsed or otherwise negotiated,
  other than in accordance with the terms and conditions of the Funding Pledge
  Agreement, without the prior written consent of Alberta Trust. 

                The
  Funding Pledge Agreement, among other things, provides for acceleration of the
  maturity of Advance evidenced hereby upon the happening of certain stated events
  and also for prepayment on account of principal hereof prior to the maturity
  of Advance evidenced hereby upon the terms and conditions therein specified.

                This
  promissory note has been duly executed as of 29th day of September, 2004.

	 	 ALBERTA CAPITAL TRUST  
	 	 CORPORATION  
	 	 	  
	 	By:  	  
	 	 	 Authorized Signing Officer  

 16 

SCHEDULE “B” 

 FORM OF ROYALTY NOTICE

 To the Royalty Agreement 

  Executed September 29, 2004, effective June 15, 2004 among 

  Gibraltor Mines Ltd., Red Mile Resources Fund Limited Partnership 

  and Red Mile Resources No. 2 Limited Partnership (the “Royalty Agreement”)
  

	
Re: 
		
Interim Royalty Payment 
	
	 

		
under Subsection 2.6(3) of the Royalty Agreement 
	

 Unless otherwise defined in this Schedule, all capitalized
  terms used herein, shall have the meanings ascribed to them in the Royalty Agreement.

 We hereby confirm that for the Royalty Period commencing on
  _____________________ and terminating on _________________________ , RLP is
  entitled to an Interim Royalty Payment of $[ _________ ] calculated as set
  out below: 

	 Royalty Period:  	  
	 	 
	 Basic Royalty Rate applicable to Royalty Period  	 (A)  
	 	 
	 Production Results for the Royalty Period:  	 (B)  
	 	 
	 Interim Basic Royalty Payable to RLP: [(A x B)]  	 (C)  
	 	 
	 NPI:  	 (D)  
	 	 
	 Total Amount Owing [C + D]:  	  

 17Filed by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Limited - Exhibit 10.9

 GENERAL PARTNER SHARE PURCHASE AGREEMENT 

 THIS AGREEMENT dated September 29, 2004 

AMONG: 

  
    
       RED MILE RESOURCES INC., in its capacity as general
        partner on behalf of all of the partners of RED MILE RESOURCES FUND
        LIMITED PARTNERSHIP, an Alberta limited partnership

       (the “Offering Partnership”) 

       - and - 

       WILSHIRE (GP) NO. 2 CORPORATION, in its capacity
        as general partner on behalf of all of the partners of RED MILE RESOURCES
        NO. 2 LIMITED PARTNERSHIP, a British Columbia limited partnership
      

       (the “Resource Partnership”) 

       - and – 

       WILSHIRE FINANCIAL SERVICES INC, a corporation
        incorporated pursuant to the laws of the Province of Alberta 

       (“Wilshire”) 

       - and - 

       GIBRALTAR MINES LTD., a corporation incorporated
        pursuant to the laws of the Province of British Columbia 

       (the “Resource Company”) 

       - and - 

       688888 B.C. LTD., a corporation incorporated
        pursuant to the laws of the Province of British Columbia 

       (the “Optionee”) 

    

  

RECITALS 

 

	 A.      	 Pursuant to the terms of a royalty agreement dated
        the date hereof among the Resource Company, the Resource Partnership and
        the Offering Partnership governing the Royalty Interest (the “Royalty
        Agreement”), the Resource Company is obliged to make certain
        payments (the “Basic Royalty”) to the Resource Partnership
        on account of the Royalty Interest. 

	 
	 B.      	 Pursuant to the terms of the Royalty Agreement,
        the Resource Company may be required, under certain circumstances, to
        acquire from the Offering Partnership all of the Units of the Resource
        Partnership held by the Offering Partnership (the “Put Option”)
        in exchange for the Put Purchase Price as such term is defined in the
        Royalty Agreement. 

	 
	 C.      	 Pursuant to the terms of a call option agreement
        (the “Call Option Agreement”) dated the date hereof
        among the Optionee, the Resource Partnership and the Offering Partnership,
        the Optionee is entitled, under certain circumstances, to acquire from
        the Offering Partnership all of the Units of the Resource Partnership
        held by the Offering Partnership (the “Call Option”)
        or the Royalty Interest held by the Resource Partnership in exchange for
        the Call Purchase Price as such term is defined in the Call Option Agreement.
      

	 
	 D.      	 Wilshire owns all of the issued share capital of
        Wilshire (GP) No. 2 Corporation, the general partner of the Resource Partnership
        (the “General Partner”). 

 NOW THEREFORE in consideration of the mutual covenants
  contained herein and other good and valuable consideration, the receipt and
  sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

	 1.      	 Preamble and Paragraph References.
        Preamble to this Agreement shall form an integral part hereof. All
        references in this Agreement to paragraphs and subparagraphs refer to
        paragraphs and subparagraphs of this Agreement unless otherwise specified.
      

	 
	 2.      	 General Partner Call Option. The
        parties hereto agree that if either the Put Option is exercised by the
        Offering Partnership pursuant to the Royalty Agreement or the Call Option
        is exercised by the Optionee pursuant to the Call Option Agreement, the
        Resource Company or the Optionee, as the case may be, shall have the option,
        but not the obligation, to: 

	 
	 	 a.     
      
	 acquire, or designate an affiliate to acquire, the
        general partnership interest of the General Partner in the Resource Partnership
        and the right to own and exercise all benefits and rights related to such
        interest in the place and stead of the General Partner (collectively the
        “GP Interest”) by delivering written notice to the
        General Partner of the exercise of such option within •days of the
        day on which the Call Option or the Put Option was exercised, as applicable
        (the “Interest Exercise Notice”). Upon receipt of the
        Interest Exercise Notice, the General Partner Shall sell the GP Interest
        to the Optionee, the Resource Company or an affiliate designated by the
        Optionee or the Resource Company, as the case may be, at a price of $10.00.
        Attached hereto as Schedule • is the form of Purchase Agreement
        to be used to effect the transaction contemplated in this Section. 

 

	 	 b.     
      
	 acquire, or to cause an affiliate of the Resource
        Company or the Optionee, as the case may be, to acquire all, but not less
        than all of the outstanding shares of the capital of General Partner owned
        by Wilshire (the “Wilshire Shares”) by delivering written
        notice to Wilshire and the General Partner of the exercise of such option
        within • days of the day on which the Call Option or the Put Option
        was exercised, as applicable (the “Share Exercise Notice”).
        Upon receipt of the Share Exercise Notice, the General Partner shall sell
        the Wilshire Shares to the Optionee, the Resource Company or an affiliate
        designated by the Optionee or the Resource Company, as the case may be,
        at a price of $10.00. Attached hereto as Schedule • is the form
        of Share Purchase Agreement to be used to effect the transaction contemplated
        in this Section. 

	 
	 3.      	 Assignment. This Agreement shall
        not be assigned by any of the parties hereto. This Agreement shall enure
        to the benefit of and be binding upon each of the parties hereto and their
        respective successors and legal assigns. 

	 
	 4.      	 Governing Law. This Agreement shall
        be governed by and construed and in force in accordance with the law of
        the Province of Alberta and the law of Canada applicable therein. 

	 
	 5.      	 Counterparts. This Agreement may
        be executed in counterparts, each of which shall be deemed an original
        and all of which, taken together, shall constitute one and the same instrument.
        Delivery of an executed counterpart of this Agreement by facsimile shall
        be equally effective as delivery of a manually executed counterpart thereof.
        Any party delivering an executed counterpart by facsimile shall also deliver
        a manually executed counterpart of this Agreement, but failure to do so
        shall not affect the validity, enforceability, or binding effect hereof.
      

	 
	 6.      	 Severability. Any provision of
        this Agreement which is invalid, illegal or unenforceable in any jurisdiction
        shall, as to that jurisdiction, be ineffective to the extent of such invalidity
        or illegality or unenforceability, without affecting in any way the remaining
        provisions hereof in such jurisdiction or rendering that or any other
        provision of this Agreement invalid, illegal or unenforceable in any other
        jurisdiction. 

	 
	 7.      	 Choice of Jurisdiction. Each of
        the parties hereto irrevocably consents and agrees that any legal action
        or proceeding against it or any of its property with respect to this Agreement
        or any other agreement executed in connection herewith may be brought
        in Alberta and by the execution and delivery of this Agreement, each party
        hereto hereby accepts with regard to any such action or proceeding for
        itself or with respect to its property, generally and unconditionally,
        the jurisdiction of the applicable jurisdiction. Nothing herein shall
        affect the right of any party to serve process in any other manner permitted
        by law or to commence legal proceedings or otherwise proceed against any
        other party in any other jurisdiction. 

	 
	 8.      	 Time of Essence. Time shall be
        of the essence in this Agreement. 

 

	 9.      	 Gender. In this Agreement, the masculine
        gender shall include the feminine and the singular shall include the plural
        and vice-versa. 

	 
	 10.      	 Currency. Unless otherwise expressly stated,
        any reference herein to any sum of money shall be construed as a reference
        to lawful currency of Canada. 

	 
	 11.      	 Further Assurances. Each party shall execute
        and deliver such other documents or instruments as may be necessary or
        desirable to evidence, give effect to or confirm this Agreement, and any
        of the terms and conditions hereof. 

 [REST OF PAGE LEFT INTENTIONALLY BLANK] 

 IN WITNESS WHEREOF, the parties hereto have executed
  this Agreement as of the date first mentioned above. 

	 	 RED MILE RESOURCES INC.,
        in its capacity as general partner on behalf of all of the partners of
        RED MILE RESOURCES FUND LIMITED PARTNERSHIP

	 	 	  
	 	 	 
	 	By:  
	  
	 	 	 Authorized Signing Officer  

	 	 	  
	 	 	  
	 	 WILSHIRE (GP) NO. 2 CORPORATION,
        in its capacity as general partner on behalf of all of the partners of
        RED MILE RESOURCES NO. 2 LIMITED PARTNERSHIP

	 	 	  
	 	 	 
	 	By:  	  
	 	 	 Authorized Signing Officer  
	 	 	  
	 	 	  
	 	 GIBRALTAR MINES LTD.  
	 	 	  
	 	 	 
	 	By:  	  
	 	 	 Authorized Signing Officer  
	 	 	  
	 	 	  
	 	 WILSHIRE FINANCIAL SERVICES INC. 
    
	 	 	  
	 	 	 
	 	By:  	  
	 	 	 Authorized Signing Officer  
	 	 	  
	 	 	 
	 	By:  	  
	 	 	 Authorized Signing Officer  
	 	 	  
	 	 	  
	 	 688888 B.C. LTD.  
	 	 	  
	 	 	 
	 	By:  	  
	 	 	          Authorized Signing Officer

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