Document:

Transfer Option Agreement of Mining Concessions dated November 20, 2003

  
 Exhibit 10.4

  

			
	 	 	TRA 0155-04/O
	OFFICIAL TRANSLATION

  
 REPUBLICA DEL PERU (THE REPUBLIC OF
PERU) 
 RAFAEL TOLEDO SEGURA 
 ATTORNEY AT LAW AND
NOTARY PUBLIC IN AND FOR LIMA 
 AV. JAVIER PRADO ESTE 1838, PISO 2, SAN BORJA, LIMA 41 
 TELEPHONES: 475-7030, 476-4281, 476-2589 
 FAX: 476-1235

 E-mail: notaria@toledo.com.pe 
  
 FIRST CERTIFIED COPY OF 
 THE
NOTARIALLY RECORDED INSTRUMENT EVIDENCING 
 THE TRANSFER OPTION AGREEMENT 
 OF MINING CONCESSIONS 
 ENTERED INTO BY AND BETWEEN 
 SOCIEDAD MINERA CORONA S.A. 
 AND

 MINERA PERU COPPER SYNDICATE 
  
 Lima, November 20, 2003 
  

											
	Kardex	 	:	  	3803	  	 Preliminary Agreement
	  	:	  	614
	Page	 	:	  	5620	  	 Notarially Recorded Instrument
	  	:	  	725

  

 In the City of Lima, on November 20, 2003, the following persons appeared before me, Rafael TOLEDO SEGURA, Attorney at
Law and Notary Public in and for Lima: 
  
 J. David LOWELL, an
American citizen, married, engineer, identified by Passport 152864350, duly authorized to sign agreements, issued by the Immigration and Naturalization Service of the Ministry of Internal Affairs, with usual residence at Av. Beatriz 789, Rio Rico,
Arizona 85648, United States of America, in transit in Lima, acting on behalf, in the name and in stead of MINERA PERU COPPER SYNDICATE S.A., identified by Tax ID Number (RUC) 20506675457, authorized by power of attorney registered on Card 11532703,
of the Registry of Companies in and for Lima, and on behalf, in the name and in stead of MINERA PERU COPPER SYNDICATE LTD., authorized by power of attorney registered on Card 11532465, of the Registry of Companies in and for Lima; and 
  
 Salvador GUBBINS GRANGER, a Peruvian citizen, married, mining businessman,
identified by National Identity Card (DNI) 07278286, with evidence of having voted in the last election, both of them with usual residence at Avenida Pedro de Osma 450, Barranco, Lima, Peru, acting on behalf, in the name and in stead of SOCIEDAD
MINERA CORONA S.A., identified by Tax ID Number (RUC) 20506675457, authorized as per the resolutions adopted in the Shareholders’ Meeting held on November 17, 2003, inserted hereinbelow and which forms an integral part of this instrument.

  
 Pursuant to the provisions of Article 55 of the Notaries Law, I attest having
identified the parties before me, and I hereby state that they are individuals who are able to exercise their rights and to enter into any type of agreements and contracts, and that they act by their own free will and deed, fully knowledgeable of
the legal act they were performing. 
  
 They presented to me a preliminary
agreement authorized by an attorney at law, to be converted into a notarially recorded instrument, which reads as follows: 
  
 PRELIMINARY AGREEMENT 
  
 You are hereby requested Mr. TOLEDO acting as Notary Public in and for Lima to enter in your Registry of Deeds, one evidencing a Transfer Option Agreement entered into by
and between SOCIEDAD MINERA CORONA S.A., identified by Tax ID Number (RUC) 20217427593, with principal place of business at Avenida Pedro de Osma 450, Barranco, Lima, Peru, acting by and through Salvador GUBBINS GRANGER, identified by National
Identity Card (DNI) 07278286, as per power of attorney granted in the Shareholders’ Meeting held on November 17, 2003 (hereinafter referred to as “CORONA”); and MINERA PERU COPPER SYNDICATE S.A., identified by Tax ID Number (RUC)
20506675457 and with principal place of business at Calle Morelli 109, Piso 5, San Borja, Lima, Peru, acting by and through James David LOWELL, identified by American Passport 152864350, duly authorized by power of attorney registered with Entry 1
on Card 11532703, of the Registry of Companies of the Public Records Office in and for Lima (hereinafter referred to as “PERU COPPER SYNDICATE”) under the following terms and conditions: 
  
 ONE: 
  
 CORONA is the holder of the following mining rights located in the District of Morococha, Province of Yauli, Department of Junin:

  

									
	 Mining
 Right

	 	 Card/
 Register

	 	 Area of Title
 (Ha)

	 	 Registration
Data

	 	 Location

	Isabel S.R.	 	4233	 	1,34	 	Card 260415	 	Lima Registry of Mines
	Polonia S.R.	 	4231	 	2,8224	 	Card 260407	 	Lima Registry of Mines
	Viena S.R.	 	21976	 	1,5897	 	Card 260423	 	Lima Registry of Mines
Huancayo
	Danubio S.R.	 	21948	 	0,90	 	 This mining claim
 is still
undergoing
 title application procedures

  

 Page 2 

 TWO: 
  
 Under the scope prescribed in Article 165 of the Consolidated Text of the Mining Law, CORONA hereby unconditionally and irrevocably agrees to enter, in the future, into a
final transfer agreement with PERU COPPER SYNDICATE, whereby CORONA will transfer to PERU COPPER SYNDICATE the ownership of the mining rights cited in the previous clause. 
  
 THREE: 
  
 The option right shall be exercised exclusively by PERU COPPER SYNDICATE. To exercise such option right, PERU COPPER SYNDICATE must forward a written notice to CORONA
within the term of this Agreement, which is indicated in Clause Four below, enclosing with such written notice the document described in the same Clause Four below. 
  
 FOUR: 
  
 The term of this Option Agreement is five (5) years, as from the date of signing hereof. 
  
 At any time during the term of this Agreement, PERU COPPER SYNDICATE may exercise the option right, being sufficient for it to forward a
written notice to CORONA declaring its decision to exercise the option right, mandatorily enclosing with such notice, a copy of the written notice sent to CENTROMIN PERU S.A., stating its decision to exercise the option right contained in the
Transfer Option Agreement entered into with such mining company on June 11, 2003 as a result of having been awarded the International Public Bidding PRI-79-2003, Promotion of Private Investment in the Toromocho Project. 
  
 Moreover, at any time during the term of this Agreement, PERU COPPER SYNDICATE may terminate
the Agreement, being sufficient to this effect, for CORONA to send a written notice stating its intention to terminate the Agreement. In this case, PERU COPPER SYNDICATE obliges, before CORONA, to sign the corresponding preliminary agreement and
notarially recorded instruments evidencing the termination of the Transfer Option Agreement, with all administrative, notarial and filing fees to be borne by PERU COPPER SYNDICATE . 
  

 Page 3 

 FIVE: 
  
 The terms and conditions of the future final Assignment Agreement are as follows: 
  

	5.1	The sale price of each of the mining rights is as follows: 

  

				
	 Isabel S.R.
	  	US$	250
	 Polonia S.R.
	  	US$	250
	 Viena S.R.
	  	US$	250
	 Danubio S.R.
	  	US$	250

  
 The aforesaid price
will be paid by PERU COPPER SYNDICATE to CORONA by check, which CORONA hereby declares that it will represent full payment. 
  

	5.2	At the time of the transfer, the mining rights subject matter of this Agreement shall be absolutely free of mortgages or liens which may limit their transfer.

  

	5.3	At the time of the transfer of the mining rights subject matter of this Agreement, CORONA shall deliver to PERU COPPER SYNDICATE receipts of payment for standing fees relating to
the mining rights, as well as annual investment tax returns and consolidated annual returns filed with the Bureau of Mines with respect to such mining rights. 

  

	5.4	All notarial expenses as well as those related to the registration of the Agreement in the Public Records Office in and for Lima shall be in the account of PERU COPPER SYNDICATE,
including a certified copy of a notarially recorded instrument of the Agreement, to be delivered by PERU COPPER SYNDICATE to CORONA. 

  
 SIX: 
  
 For all purposes related to the performance of this Agreement, the parties hereby submit themselves to the jurisdiction of the courts and judges of the City of Lima. 
  
 For the purposes stated above and for the notices to be sent to each other by the parties,
the parties hereby indicate that their domiciles are those specified in the introductory part hereof. For any changes of domicile to have effect it must be notified in writing to the other party. 
  
 SEVEN: 
  
 All notarial expenses and all expenses related with the registration of this Agreement in the Public Records Office in and for Lima shall be
in the account of PERU COPPER SYNDICATE, including a certified copy of the notarially recorded instrument relating to this Agreement, which is to be submitted by PERU COPPER SYNDICATE to CORONA. 
  
 Signed in two (2) counterparts in the City of Lima, on November 19, 2003. 
  
 (two illegible signatures) 
  

 Page 4 

 This preliminary agreement is authorized by Milagros SILVA-SANTISTEBAN C., Attorney at Law, with Lima Bar Association
Registration Number (CAL) 14951. 
  
 INSERT: 
  
 MINUTES OF THE SHAREHOLDERS’ MEETING OF 
 SOCIEDAD MINERA CORONA S.A., HELD ON NOVEMBER 17, 2003 
  
 I, Rafael TOLEDO SEGURA, Attorney at Law and Notary Public in and for Lima, DO HEREBY CERTIFY THAT: 
  
 The Minute Book of SOCIEDAD MINERA CORONA S.A kept according to the legal requirements and duly authenticated by Alfredo PAINO SCARPATI,
Attorney at Law and Notary Public in and for Lima dated September 18, 2003, kept in his Sequential Record of Authentications in File 025698, has been produced before me, and I have verified that on Pages 44 to 48 of the said book, the Minutes of the
Shareholders’ Meeting are kept, which literal contents I am being requested to transcribe and reads as follows: 
  
 SHAREHOLDERS’ MEETING 
  
 In Lima, on November 17, 2003, at 10 a.m., a meeting was held in the company’s offices located at Av. Pedro de Osma 450, Barranco, Lima, Peru, attended by the
following shareholders: 
  

	1.	Sylvia GUBBINS GRANGER, with usual residence at Malecon Armendariz 175, Departamento 401, Miraflores, Lima, acting by and through Salvador GUBBINS GRANGER, as per power of attorney
previously filed, holder of 7,687,501 shares. 

  

	2.	Patricia GUBBINS GRANGER, with usual residence at Malecon Armendariz 175, Departamento 401, Miraflores, Lima, holder of 7,687, 501 shares. 

  

	3.	Caroline GUBBINS DE PEREZ, with usual residence at Calle 9, 265, Urbanizacion Los Sauces, La Rinconada, La Molina, Lima, holder of 7,687,501 shares. 

  

	4.	Succession Reynaldo GUBBINS GRANGER, acting by and through Maria Luisa FLOREZ - ESTRADA GARLAND, as per powers of attorney kept in the company’s files, with 6,254,058 shares.

  

	5.	Marian GUBBINS GRANGER, with usual residence at Victor Maurtua 276, Departamento 201, San Isidro, Lima, holder of 7,687,501 shares. 

  

	6.	 Eduardo GUBBINS GRANGER, with usual residence at Jose Anchorena 125, San Isidro, Lima, holder of 15,375,001 shares, of which 7,687,500 shares are owned by his
brother, Jaime GUBBINS GRANGER, on whose behalf he is acting as per power of attorney being granted through notarially recorded. 

  

 Page 5 

	 	 
instrument kept in the company’s files, it being stated that he is the holder of the remaining 7,687,501 shares. 

  

	7.	Salvador GUBBINS GRANGER, with usual residence at Parque Meliton Porras 274, Miraflores, Lima, holder of 23,062,501 shares, of which 7,687,499 shares are owned by his sister, Lucila
GUBBINS GRANGER and 7,687,501 shares are owned by his sister, Barbara GUBBINS GRANGER, it being stated that he is the holder of the remaining 7,687,501 shares being his own. 

  

	8.	Golden Sea Limited, with principal place of business being at Las Acacias 244, Miraflores, Lima, Peru, acting by and through Alberto GUBBINS VELARDE, as per power of attorney letter
previously filed with the company, holder of 4,014,095 shares. 

  

	9.	Revocable Active Trust of Martha GUBBINS DE LONG, with usual residence at Av. Pedro de Osma 450, Barranco, Lima, Peru, acting by and through Salvador GUBBINS GRANGER, as per power
of attorney letter previously filed with the company, with 3,843,751 shares. 

  

	10.	Revocable Active Trust of Alan V. LONG, with usual residence at Av. Pedro de Osma 450, Barranco, Lima, Peru, acting by and through Salvador GUBBINS GRANGER, as per power of attorney
letter previously filed with the company, with 3,843,751 shares. 

  

	11.	Tenedora de Valores SAC, with principal place of business at Av. Dos de Mayo 420, Miraflores, Lima, Peru, acting by and through Maria Luisa FLOREZ - ESTRADA GARLAND, as per power of
attorney letter previously filed with the company, with 1,433,445 shares. 

  
 According to the above list of shareholders, they represent 92.015% of the subscribed shares with voting rights. 
  
 Absent from the meeting were shareholders Alejandro GUBBINS GRANGER and Compania Minera Casapalca S.A., holders of 7,687,502 shares, equivalent to 7,985% of the
subscribed shares with voting rights. 
  
 Salvador GUBBINS GRANGER acted as
Chairman of the meeting. Marian GUBBINS GRANGER acted as Secretary, as she was especially designated to such post by the directors attending the meeting. As provided in Article 22 of the bylaws, in consideration to the fact that the meeting had been
summoned in the Official Gazette “El Peruano” and in the “La Republica” newspaper, and that the attending shareholders represented 92.015% of the subscribed shares with voting rights, the Chairman stated that the
provisions of Articles 16 and 20 of the bylaws had been complied with and, therefore, the meeting could be called to order and declared open, to deal with the sole item in the Order of the Day, as follows: 
  
 Future transfer of certain mining rights of the company, to MINERA PERU COPPER SYNDICATE
S.A., through an Option Transfer Agreement. 
  

 Page 6 

 Subsequently, the meeting started to deal with this sole item in the Order of the Day: 
  
 Future transfer of certain mining rights of the company to MlNERA PERU COPPER SYNDICATE
S.A., through an Option Transfer Agreement 
  
 The Chairman recalled that the
meeting had been summoned by the company’s Board of Directors, which on its meeting dated November 11, 2003 had approved, among other resolutions, for the company to enter into an Option Transfer Agreement with MINERA PERU COPPER SYNDICATE
S.A., to transfer at a future date to the said mining company, the company’s mining rights, located in the District of Morococha, Province of Yauli, Department of Junin, as follows: 
  
 Isabel S.R., Polonia S.R., Viena S.R. and Danubio S.R. 
  
 The Chairman proceeded and stated that since the shareholders were fully aware of the resolutions approved by the company’s Board of
Directors in its meeting of November 11, 2003, he was submitting the following proposals, which reads as follows: 
  

	1.	To approve the company signing an Option Transfer Agreement with MINERA PERU COPPER SYNDICATE S.A., whereby the company would transfer at a future date to the mining company, the
company’s mining rights, located in the District of Morococha, Province of Yauli, Department of Junin, as follows: 

  
 Isabel S.R., Polonia S.R., Viena S.R. and Danubio S.R. 
  

	2.	To approve that it is an essential condition for the company that on the same date of the signing of an Option Transfer Agreement with MINERA PERU COPPER SYNDICATE S.A., an Option
Assignment Agreement must be signed with the same mining company, concerning certain mining rights, which may in the future belong to MINERA PERU COPPER SYNDICATE S.A., if it does execute the option contained in the Option Transfer Agreement signed
with CENTROMIN PERU S.A., on June 11, 2003, with the essential condition being met through an express statement made by the company and reflected in the Option Transfer Agreement in the sense that the company and MINERA PERU COPPER SYNDICATE S.A.
have signed the Option Transfer Agreement. 

  

	3.	To approve the granting of a full and sufficient power of representation to Salvador GUBBINS G., identified by National Identity Card (DNI) 07278286, so that on behalf, in lieu and
in stead of the company, he may negotiate the terms of the Option Transfer Agreement to be entered into by and between the company and MINERA PERU COPPER SYNDICATE S.A., including in such negotiation the essential condition prescribed in the
previous proposal and to sign the preliminary agreement and the notarially recorded instrument corresponding to the said Agreement and/or any other public or private document required to such effect. 

  

 Page 7 

 Having the above proposals been put for voting by the shareholders, the results thereof were as follows: 
  

					
	 SHAREHOLDER

	  	No. OF SHARES

	  	 VOTE

			
	 Sylvia GUBBINS GRANGER
	  	7,687,501	  	in favor of the proposal
			
	 Patricia GUBBINS GRANGER
	  	7,687,501	  	in favor of the proposal
			
	 Caroline GUBBINS DE PEREZ
	  	7,687,501	  	in favor of the proposal
			
	 Succession Reynaldo GUBBINS GRANGER
	  	6,254,058	  	in favor of the proposal
			
	 Marian GUBBINS GRANGER
	  	7,687,501	  	in favor of the proposal
			
	 Eduardo GUBBINS GRANGER
	  	7,687,501	  	in favor of the proposal
			
	 Salvador GUBBINS GRANGER
	  	7,687,501	  	in favor of the proposal
			
	 Jaime GUBBINS GRANGER
	  	7,687,500	  	in favor of the proposal
			
	 Lucila GUBBINS DE ESTERLEY
	  	7,687,499	  	in favor of the proposal
			
	 Barbara GUBBINS GRANGER
	  	7,687,501	  	in favor of the proposal
			
	 Golden Sea Limited
	  	4,014,095	  	in favor of the proposal
			
	 Revocable Active Trust of Martha GUBBINS DE LONG
	  	3,843,751	  	in favor of the proposal
			
	 Revocable Active Trust of Alan V. LONG
	  	3,843,751	  	in favor of the proposal
			
	 Tenedora de Valores SAC
	  	1,433,445	  	in favor of the proposal

  
 The Chairman then stated that the
proposals had been approved by shareholders representing 92.015% of the subscribed shares with voting rights. 
  
 There being no further business to transact, the meeting was suspended for a few minutes, at 12 noon, to prepare these minutes. Once the meeting reopened, the minutes were signed by all the attending shareholders, as
a sign of consent. 
  
 (Seven signatures appear) 
  
 The foregoing is a true and exact copy of the text contained in the original minute book
which has been produced before me, and this document purports to represent. 
  
 (signed) Rafael Toledo Segura 
       Attorney at Law and Notary Public in and
for Lima 

  

 Page 8 

 INSERT: 
  
 NOTICE OF MEETING OF SOCIEDAD MINERA CORONA S.A., PUBLISHED IN THE OFFICIAL GAZETTE “EL PERUANO” ON NOVEMBER 13, 2003

  
 I, Rafael TOLEDO SEGURA, Attorney at Law and Notary Public in and for
Lima, DO HEREBY CERTIFY THAT: the issue of the Official Gazette “El Peruano” for November 13, 2003, has been produced before me and I hereby state that on Page 22, there is a Notice of a Meeting, which literal contents I am
being asked to transcribe, read as follows: 
  
 NOTICE OF MEETING

 SOCIEDAD MINERA CORONA S.A. 
  
 Pursuant to the provisions of Article 115, Item 7 and Article 374 of the Business Corporations Law, a Shareholders’ Meeting is being summoned for November 17, 2003,
at 10 a.m., at the company’s domicile for tax purposes, located at Av. Pedro de Osma 450, Barranco, Lima, Peru, to deal with the following Order of the Day: 
  
 Future transfer of certain mining rights of the company, to MINERA PERU COPPER SYNDICATE S.A., through an Option Transfer Agreement

  
 In the event the required quorum is not present, the shareholders are hereby
advised that an adjourned meeting would be held on November 18, 2003 at the same time and in the same place summoned for the original meeting. 
  
 Lima, November 12, 2003 
  
 THE BOARD OF DIRECTORS 

  
 INSERT: 
  
 NOTICE OF MEETING OF SOCIEDAD MINERA CORONA S.A., PUBLISHED IN THE “LA REPÙBLICA” NEWSPAPER ON NOVEMBER 13, 2003 
  
 I, Rafael TOLEDO SEGURA, Attorney at Law and Notary Public in and for Lima, DO HEREBY
CERTIFY THAT: the issue of the “LaRepùblica” for November 13, 2003 has been produced before me, and I hereby state that on Page 29, there is a Notice of a Meeting, which literal contents I am being asked to transcribe and
read as follows: 
  
 NOTICE OF MEETING 
 SOCIEDAD MINERA CORONA S.A. 
  
 Pursuant to the provisions of Article 115, Item 7 and Article 374 of the Business Corporations Law, a Shareholders’ Meeting is being summoned for November 17, 2003,
at 10 a.m, at the company’s premises, located at Av. Pedro de Osma 450, Barranco, Lima, Peru, to deal with the following Order of the Day: 
  
 Future transfer of certain mining rights of the company, to MINERA PERU COPPER SYNDICATE S.A., through an Option Transfer Agreement 
  

 Page 9 

 In the event the required quorum is not present, the shareholders are hereby advised that an adjourned meeting would be
held on November 18, 2003 at the same time and in the same place summoned for the original meeting. 
  
 Lima, November 12, 2003 
  
 THE BOARD OF DIRECTORS

  
 CONCLUSION

  
 In accordance with the provisions of Article 59 of the Notaries Law,
the grantors read this instrument before me, learning of its entire contents. 
  
 I, the undersigned Attorney at Law and Notary Public, DO HEREBY STATE that this notarially recorded instrument starts on page with Serial Number 4200120, ending on Page with Serial Number 4200130. 
  
 The signing process performed before me was completed on November 25, 2003. 
  

			
	(signed)	 	J. David Lowell
		
	(signed)	 	Salvador Gubbins Granger
		
	(signed)	 	Rafael Toledo Segura
	 	 	Attorney at Law and Notary Public in and for Lima

 I, Rafael TOLEDO SEGURA, Attorney at Law and Notary
Public in and for Lima, pursuant to the provisions of Article 83 of the Notaries Law, DO HEREBY ISSUE a First Certified Copy of this Notarially Recorded Instrument issued on November 20, 2003, on Pages 5620 et seq, of my Registry of Deeds for the
2003 – 2004 period, signed by the parties and authorized by me. I certify that this document is a true copy of its original; therefore, I sign and seal it, in the City of Lima, on March 15, 2004. 
  

			
	(signed)	 	Rafael Toledo Segura
	 	 	Attorney at Law and Notary Public in and for Lima / Seal

  

 Page 10 

 JUNTA DE DECANOS DE LOS COLEGIOS DE NOTARIOS DEL PERÚ 
 (BOARD OF DEANS OF THE PERUVIAN ASSOCIATION OF NOTARIES) 
  
 Pursuant to the provisions of the Bylaws, Article 11 of the Board of Deans of the Peruvian Association of Notaries, in accordance with Supreme Decree 023-2002-JUS,
Article 2, Francisco VILLAVICENCIO CÁRDENAS acts herein in the name, in lieu and in stead of the Chairman of the Board of Directors of the said entity to certify that the signature and seals affixed to the foregoing document are the true,
proper and respective handwriting and seals of Rafael TOLEDO SEGURA, Attorney at Law and Notary Public in and for Lima, currently in office. 
  
 Receipt: 18186 
  
 Lima, March 17, 2004 
  

			
	(signed)	 	Francisco Villavicencio Cárdenas
	 	 	Attorney at Law and Notary Public

  
 Seal / Raised seal 

			
	 REPÚBLICA DEL PERÚ (THE REPUBLIC OF PERU)
 MINISTERIO DE RELACIONES EXTERIORES
 (MINISTRY OF FOREIGN AFFAIRS)
 DIRECCIÓN GENERAL DE ASUNTOS CONSULARES
 (CONSULAR AFFAIRS BUREAU)
 LEGALIZACIONES (AUTHENTICATION OFFICE)
	  	#240686

  
 The foregoing signature of Francisco
VILLAVICENCIO C. IS HEREBY AUTHENTICATED. 
  
 For the contents of the attached
document, this Bureau assumes no responsibility. 
  
 Lima, March 18, 2004

  

			
	(signed)	 	 Benjamin Victor Vial Carhuavilca

	 	 	 Consular Proceedings Department

	 	 	 Authentication Office / Seal / Raised Seal

 I, THE UNDERSIGNED CERTIFIED PUBLIC
TRANSLATOR DO HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT TRANSLATION OF THE ORIGINAL TEXT IN SPANISH ATTACHED HERETO. THIS TRANSLATION SHALL NOT BE CONSIDERED AS AN ACKNOWLEDGEMENT OF THE AUTHENTICITY OF THE ORIGINAL DOCUMENT. 
  
 IN WITNESS WHEREOF I HEREUNTO SET MY HAND AND AFFIX MY SEAL IN LIMA THIS
19TH DAY OF MARCH 2004. 
  

	
	/s/    Illegible        
	Maria del Carmen Pizzaro Sabogal
	Certified Public Translator

  

 Page 11Option Assignment Agreement dated November 20, 2003

  
 Exhibit 10.5

  
 TRA 0156-04/O 
  
 OFFICIAL TRANSLATION 
  
 REPUBLICA DEL PERU (THE REPUBLIC OF PERU) 
 RAFAEL TOLEDO SEGURA 
 ATTORNEY AT LAW AND NOTARY PUBLIC IN AND FOR
LIMA 
 AV. JAVIER PRADO ESTE 1838, PISO 2, SAN BORJA, LIMA 41 
 TELEPHONES: 475-7030, 476-4281, 476-2589 
 FAX: 476-1235 
 E-mail: notaria@toledo.com.pe 
  
 FIRST CERTIFIED COPY OF 
 THE NOTARIALLY RECORDED INSTRUMENT EVIDENCING 
 THE OPTION ASSIGNMENT AGREEMENT 
 ENTERED INTO BY AND BETWEEN 
 SOCIEDAD MINERA CORONA S.A. 
 AND 
 MINERA PERU COPPER SYNDICATE 
  
 Lima, November 20, 2003 
  

											
	Kardex	  	:	  	3804	    	Preliminary Agreement	  	:	  	613
	Page	  	:	  	5610	    	Notarially Recorded Instrument	  	:	  	724

  

 In the City of Lima, on November 20, 2003, the following persons appeared before me, Rafael TOLEDO SEGURA, Attorney at
Law and Notary Public in and for Lima: 
  
 Eduardo GUBBINS GRANGER,
a Peruvian citizen, married, industrial engineer, identified by National Identity Card (DNI) 08264418, with evidence of having voted in the last elections. 
  
 Salvador GUBBINS
GRANGER, a Peruvian citizen, married, mining businessman, identified by National Identity Card (DNI) 07278286, with evidence of having voted in the last elections, both of them
with usual residence of Avenida Pedro de Osma 750, Barranco, Lima, Peru, acting on behalf, in the name and in stead of SOCIEDAD MINERA CORONA S.A., identified by Tax ID Number (RUC) 20217427593, authorized as per power of attorney registered with
Entry 17, on Card 040033, of the Registry of Contracting Companies and Other Legal Entities. 
  
 J. David LOWELL, an American citizen, married, engineer, identified by Passport 152864350, duly authorized to sign agreements, issued by the Immigration and Naturalization Service of the Ministry of
Internal Affairs, with usual residence at Av. Beatriz 789, Rio Rico, Arizona 85648, United States of America, in transit in Lima, acting on behalf, in the name and in stead of MINERA PERU COPPER SYNDICATE S.A., identified by Tax ID Number (RUC)
20506675457, authorized by power of attorney registered on Card 11532703, of the Registry of Companies in and for Lima, and on behalf, in the name and in stead of MINERA PERU COPPER SYNDICATE LTD., authorized by power of attorney registered on Card
11532465, of the Registry of Companies in and for Lima; and 
  
 Pursuant to the
provisions of Article 55 of the Notaries Law, I attest having identified the parties before me, and I hereby state that they are individuals who are able to exercise their rights and to enter into any type of agreements and contracts, and that they
act by their own free will and deed, fully knowledgeable of the legal act they were performing. 
  
 They presented to me a preliminary agreement authorized by an attorney at law, to be converted into a notarially recorded instrument, which reads as follows: 
  
 PRELIMINARY AGREEMENT 
  
 You are hereby requested, Mr. TOLEDO, acting as Notary Public in and for Lima to enter in
your Registry of Deeds one evidencing an Option Assignment Agreement entered into by and between SOCIEDAD MINERA CORONA S.A., identified by Tax ID Number (RUC) 20217427593, with principal place of business at Avenida Pedro de Osma 450, Barranco,
Lima, Peru, acting by and through Salvador GUBBINS GRANGER, identified by National Identity Card (DNI) 07278286, and Eduardo GUBBINS GRANGER, identified by National Identity Card (DNI) 08264718, as per power of attorney evidenced in Point 2 of the
Final Provisions of the bylaws of SOCIEDAD MINERA CORONA S.A., registered with Entry 17, on Card 040033, of the Registry of Contracting Companies and Other Legal Entities (Registry of Companies) of the Public Records Office in and for Lima
(hereinafter referred to as “CORONA”); 

  

 Page 2 

 
and MINERA PERU COPPER SYNDICATE S.A., with Tax ID Number (RUC) 20506675457, with principal place of business at Calle Morelli 109, Piso 5, San Borja, Lima,
Peru, acting by and through James David LOWELL, identified by American Passport 152864350, duly authorized by power of attorney registered with Entry 1 on Card 11532703, of the Registry of Companies of the Public Records Office in and for Lima
(hereinafter referred to as “PERU COPPER SYNDICATE”) under the following terms and conditions: 
  
 ONE: 
  
 On June 11, 2003 PERU COPPER
SYNDICATE and CENTROMIN PERU S.A. signed an Option Transfer Agreement, whereby the option term set forth in the said agreement, once PERU COPPER SYNDICATE executed the option, it will sign an Option Transfer Agreement with CENTROMIN PERU S.A.,
whereby, it will transfer to PERU COPPER SYNDICATE S.A., among other property, the so-called mining concessions configuring the Toromocho Project. 
  
 Included in the mining concessions forming part of the Toromocho Project, is the concession known as TOROMOCHO THREE, registered as 4357-N, located in the District of
Morococha, Province of Yauli, Department of Junin, with an area of 113.6 ha. The above-mentioned mining concession encompasses an area known as “Buenaventura Area”, with an area of 36,1509 ha, defined according to the following
coordinates: 
  

			
	 North

	  	 East

		
	 1. 8 715 666 546
	  	375 048 796
		
	 2. 8 715 468 623
	  	375 084 089
		
	 3. 8 715 415 955
	  	374 749 166
		
	 4. 8 715 186 558
	  	374 784 083
		
	 5. 8 715 095 483
	  	374 206 526
		
	 6. 8 715 285 660
	  	374 176 300
		
	 7. 8 715 306 330
	  	374 291 980
		
	 8. 8 715 340 000
	  	374 266 168
		
	 9. 8 715 314 381
	  	374 103 248
		
	 10. 8 715 508 524
	  	374 069 322
		
	 11. 8 715 540 604
	  	374 052 339
		
	 12. 8 715 610 423
	  	374 187 667
		
	 13. 8 715 562 124
	  	374 213 244
		
	 14. 8 715 712 938
	  	374 406 942
		
	 15. 8 715 637 359
	  	374 465 857
		
	 16. 8 715 558 558
	  	374 363 977
		
	 17. 8 715 576 365
	  	374 476 900
		
	 18. 8 715 626 115
	  	374 540 948
		
	 19. 8 715 590 973
	  	374 569 538

  

 Page 3 

 TWO: 
  
 Under the scope prescribed in Article 165 to Article 171 of the Consolidated Text of the Mining Law, PERU COPPER SYNDICATE hereby unconditionally and irrevocably agrees
to enter, in the future, into a final assignment agreement with CORONA, whereby PERU COPPER SYNDICATE will transfer to CORONA the ownership of the so-called “Buenaventura Area” cited in the previous clause. 
  
 Prior to the assignment, PERU COPPER SYNDICATE agrees to divide the TOROMOCHO THREE mining
right in such manner that the result of this division, the so-called “Buenaventura Area” subject matter of the Option Assignment Agreement becomes an independent mining concession, without prejudice to the said independent mining
concession continue to support the charge specified in Point 5.8 in Clause Five of this Agreement. 
  
 THREE: 
  
 The option right shall be
exercised exclusively by CORONA. To exercise such option right, CORONA must forward a written notice to PERU COPPER SYNDICATE within the term of this Agreement, which is set forth in Clause Four below, enclosing with such written notice the document
described in the same Clause Four below. 
  
 FOUR: 
  
 The term of this Option Assignment Agreement is five (5) years, as from the date of signing
hereof. At any time during the term of this Agreement, CORONA may exercise the option right, it being sufficient to forward a written notice to PERU COPPER SYNDICATE stating its decision to exercise the option right, provided that PERU COPPER
SYNDICATE has executed the option right contained in the Option Transfer Agreement entered into with CENTROMIN PERU S.A. on June 11, 2003 as a result of having been awarded the International Public Bidding PRI-79-2003, Promotion of Private
Investment in the Toromocho Project. 
  
 Moreover, at any time during the term of
this Agreement, CORONA may terminate the Agreement, being sufficient to this effect for CORONA to send a written notice to PERU COPPER SYNDICATE stating its intention to terminate the Agreement. In this case, 

  

 Page 4 

 
CORONA obliges to sign the corresponding preliminary agreement and notarially recorded instruments evidencing the termination of the Option Transfer
Agreement, with all administrative, notarial and filing fees to be borne by CORONA. 
  
 FIVE: 
  
 The terms and conditions of the future final Assignment
Agreement are as follows: 
  

	5.1	The term of the Assignment Agreement shall be thirty (30) years, as from the date of signing by the parties, notwithstanding its conversion into a notarially recorded instrument and
subsequent filing with the Public Records Office. 

  

	5.2	PERU COPPER SYNDICATE and CORONA expressly states that the development of the Toromocho Project will have priority over the exploration and exploitation of the mining right subject
matter of the assignment by PERU COPPER SYNDICATE in favor of CORONA. 

  
 The parties hereby expressly agree that if during the effective term of the Assignment Agreement, at its sole discretion, PERU COPPER SYNDICATE decides to terminate the Concession Contract, it may do so, being
sufficient to this effect for PERU COPPER SYNDICATE to send a notice to CORONA of its decision to terminate the Assignment Agreement, through notarial letter, at least sixty (60) calendar days prior to such termination. In the case of the early
termination referred to in the preceding paragraph, PERU COPPER SYNDICATE shall pay CORONA: a) the amount of US$8,000,000 (Eight Million US Dollars) if such early termination occurs within the first five (5) years of the Assignment Agreement; or b)
the amount of US$2,000,000 (Two Million US Dollars) if such early termination occurs after the fifth anniversary of the signing of the Assignment Agreement. 
  
 PERU COPPER SYNDICATE shall make the above-mentioned payment within ninety (90) calendar days following the date of its notice advising of its decision to
terminate the Assignment Agreement. On the other hand, at any time during the effective term of the Assignment Agreement, CORONA may decide to terminate such Agreement, with full right and effective immediately, it being sufficient to forward a
notarial letter to PERU COPPER SYNDICATE at least thirty (30) calendar days in advance, indicating that the assignment is being terminated. 
  
 To exercise such a right, CORONA must not have any outstanding obligations with CENTROMIN PERU S.A. with respect to the royalties referred to in Point 5.4
of this clause. 
  
 The exercise of the aforementioned right, by
CORONA or PERU COPPER SYNDICATE, does not confer the other party any right to request – in or out of court – an indemnity for damages. 
  

	5.3	 CORONA is hereby authorized to use the mineral extracted as a result of works related to the exploration or exploitation of the mining rights subject matter of

  

 Page 5 

	 	 
the assignment, enjoying to this effect full freedom to carry out the exploration, development and exploitation works, as well as the execution of works,
such as sampling, analyses, etc., without prejudice to carrying them out in a rational manner, in compliance with the opinion and criteria given by its technical personnel, pursuant to the provisions of the Mining Law, its Mining Health and Safety
Regulations, mining environmental regulations, etc. 

  

	5.4	In exchange for the minerals extracted and sold by CORONA under the assigned mining right, CORONA shall pay within fifteen (15) days following each calendar semester as from the
first sale of minerals to third parties, royalties equivalent to the specification contained in Item b), Clause Three of the Addendum to the Option Transfer Agreement for the Mining Concessions related to the Toromocho Project signed by PERU COPPER
SYNDICATE and CENTROMIN PERU S.A. on November 12, 2003, which includes Point 4.8 of Clause Four of the Transfer Agreement, which forms part of the said Option Transfer Agreement as an exhibit. 

  
 Applicable to the procedure used for the payment of royalties, is the
contractual agreement contained in Point 4.4 of Clause Four of the Transfer Agreement indicated in the previous paragraph. 
  

	5.5	As assignee, CORONA agrees to comply with its obligations associated with the mining right assigned by PERU COPPER SYNDICATE, as well as the obligations stipulated in Title Six,
Chapter I of the Mining Law. 

  
 CORONA shall be
responsible for all the obligations set forth in the Option Transfer Agreement; and if applicable, in the Transfer Agreement, as detailed in the preceding point, with reference to the 36,1509 ha area subject matter of this Option Assignment
Agreement, with PERU COPPER SYNDICATE declaring that the party directly responsible to CENTROMIN PERU S.A. for compliance of the contractual obligations deriving from the aforementioned agreements, is – and will always be – PERU COPPER
SYNDICATE. Accordingly, any event of default by CORONA shall not have an effect on the compliance of obligations by PERU COPPER SYNDICATE with CENTROMIN PERU S.A. 
  

	5.6	Upon expiry of the term of this Agreement, or prior to such expiry, in the event that either CORONA or PERU COPPER SYNDICATE decides its early termination in exercise of the rights
conferred herein, CORONA shall have a period of six (6) months to remove all of its equipment, machinery, rails, etc., which it may have installed for the purposes of exploration or exploitation in the mining right being assigned or on the surface
of the land or adjacent thereto. 

  

	5.7	PERU COPPER SYNDICATE shall have the right of visiting, at its own cost, the area of the assigned mining right, without interfering with any exploration and/or exploitation works being carried out by CORONA. 

  

	5.8	 At the time of the assignment of the mining right subject matter of the Agreement, it shall be absolutely free of mortgages or liens which may limit its 

  

 Page 6 

	 	 
assignment, except for the charge to be levied upon the said mining right in accordance with the contractual agreement made in Point 4.7 of Clause Four of
the Transfer Agreement signed by PERU COPPER SYNDICATE and CENTROMIN PERU S.A., as stipulated above. 

  

	5.9	All notarial expenses as well as those related to the registration of the Assignment Agreement in the Public Records Office in and for Lima shall be in the account of CORONA,
including a certified copy of a notarially recorded instrument of the Agreement, to be delivered by CORONA to PERU COPPER SYNDICATE. 

  
 SIX: 
  
 Any other case of litigation, dispute, controversy, difference or claim, arising from or related to this Agreement, in the compliance with this Agreement, or deriving from or associated with this Agreement, or with
the matters thereof, including but not limited to legal, property or technical aspects, shall be resolved through arbitration, in accordance with the provisions of the Arbitration Regulations of the National Institute of Mining, Petroleum and Energy
Law, to which the parties unconditionally submit themselves. 
  
 This Institute
shall be responsible for carrying out the said arbitration, which shall be deemed to be the only means or court for the solution of the aforementioned disputes or controversies, with its award being final, binding and conclusive. There will be three
(3) arbitrators, with the parties appointing one each. The two appointed arbitrators shall appoint the third arbitrator, who will preside over the proceedings. 
  

If one of the parties fails to appoint its arbitrator within fifteen (15) calendar days of receipt of a written request sent by the party requesting arbitration; or if
within a similar term of fifteen (15) calendar days, as from the appointment of the last arbitrator, they fail to appoint the Chairman of the arbitration court, the designation of the missing arbitrator, or the designation of the Chairman of the
arbitration court shall be made, upon request of any of the parties, by the National Institute of Mining, Petroleum and Energy Law. In the event that, because of any circumstances, a substitute arbitrator is to be designated, he shall be appointed
following the procedure described above for the designation of arbitrators. 
  
 SEVEN: 
  
 For all purposes related to the performance of this
Agreement, the parties hereby state that their domiciles are those indicated in the introductory part hereof. For any changes of domicile to have effect it must be notified in writing to the other party. 
  
 EIGHT: 
  
 All notarial expenses and all expenses related with the registration of this Agreement in the Public Records Office in and for Lima shall be
in the account of CORONA, including a certified copy of the notarially recorded instrument relating to this Agreement, which is to be submitted by CORONA to PERU COPPER SYNDICATE. 
  
 Signed in two (2) counterparts in the City of Lima, on November 19, 2003. 
  

 Page 7 

 (three illegible signatures) 
  
 This preliminary agreement is authorized by Milagros SILVA-SANTISTEBAN C., Attorney at Law, with Lima Bar Association Registration Number (CAL) 14951. 
  
 The granting of special powers is governed by the principle of literality. The existence of
special powers which have not been explicitly conferred is not assumed. 
  
 CONCLUSION 
  
 In accordance with the provisions of
Article 59 of the Notaries Law, the grantors read this instrument before me, and become familiar with its entire contents. 
  
 I, the undersigned Attorney at Law and Notary Public, DO HEREBY STATE that this notarially recorded instrument starts on page with Serial Number 4200110, ending on Page
with Serial Number 4200119. 
  
 The signing process performed before me was
completed on November 25, 2003. 
  
 (signed) Eduardo Gubbins Granger 

 
 (signed) Salvador Gubbins Granger 
  
 (signed) J. David Lowell 
  
 (signed) Rafael Toledo Segura 
       Attorney at Law and Notary Public in and for Lima 

 I, Rafael TOLEDO SEGURA, Attorney at Law and Notary Public in and for Lima, pursuant to the provisions of Article 83 of the Notaries Law, DO HEREBY ISSUE a First Certified Copy of this Notarially Recorded Instrument issued on November 20,
2003, on Pages 5610 et seq, of my Registry of Deeds for the 2003 – 2004 period, signed by the parties and authorized by me. I certify that this document is a true copy of its original; therefore, I sign and seal it, in the City of Lima, on
March 15, 2004. 
  
 (signed) Rafael Toledo Segura 
       Attorney at Law and Notary Public in and for Lima / Seal 
  

 Page 8 

 JUNTA DE DECANOS DE LOS COLEGIOS DE NOTARIOS DEL PERÚ 
 (BOARD OF DEANS OF THE PERUVIAN ASSOCIATION OF NOTARIES) 
  
 Pursuant to the provisions of the Bylaws, Article 11 of the Board of Deans of the Peruvian Association of Notaries, in accordance with Supreme Decree 023-2002-JUS,
Article 2, Francisco VILLAVICENCIO CÁRDENAS acts herein in the name, in lieu and in stead of the Chairman of the Board of Directors of the said entity to certify that the signature and seals affixed to the foregoing document are the true,
proper and respective handwriting and seals of Rafael TOLEDO SEGURA, Attorney at Law and Notary Public in and for Lima, currently in office. 
  
 Receipt: 18187 
  
 Lima, March 17, 2004 
  
 (signed) Francisco
Villavicencio Cárdenas 
       Attorney at Law and Notary Public 
  
 Seal / Raised seal 

 

			
	REPÚBLICA DEL PERÚ (THE REPUBLIC OF PERU)	 	 
	MINISTERIO DE RELACIONES EXTERIORES	 	 
	(MINISTRY OF FOREIGN AFFAIRS)	 	 
	DIRECCIÓN GENERAL DE ASUNTOS CONSULARES	 	 
	(CONSULAR AFFAIRS BUREAU)	 	 
	LEGALIZACIONES (AUTHENTICATION OFFICE)	 	#240686

  
 The foregoing signature of Francisco
VILLAVICENCIO C. IS HEREBY AUTHENTICATED. 
  
 For the contents of the attached
document, this Bureau assumes no responsibility. 
  
 Lima, March 18, 2004

  
 (signed) Benjamin Victor Vial Carhuavilca 
       Consular Proceedings Department 
       Authentication Office / Seal / Raised Seal 
  

 GCD/LD/mcp__ 
 270982K4 
  
 I, THE UNDERSIGNED CERTIFIED PUBLIC TRANSLATOR DO HEREBY CERTIFY THAT THIS IS
A TRUE AND CORRECT TRANSLATION OF THE ORIGINAL TEXT IN SPANISH ATTACHED HERETO. THIS TRANSLATION SHALL NOT BE CONSIDERED AS AN ACKNOWLEDGMENT OF THE AUTHENTICITY OF THE ORIGINAL DOCUMENT. 
  
 IN WITNESS WHEREOF I HEREUNTO SET MY HAND AND AFFIX MY SEAL IN LIMA THIS 19TH DAY OF MARCH 2004. 
  

	
	
	/s/ MARIA DEL CARMEN PIZARRO SABOGAL
	 Maria del Carmen Pizarro Sabogal
 Certified Public Translator

  

 Page 9

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