Document:

Rancher Energy Corp. Exhibit 10.8 - Assignment

    Exhibit
      10.8

    ASSIGNMENT
      AGREEMENT

    

     

    This
      ASSIGNMENT AGREEMENT (the “Assignment
      Agreement”) is made and entered into on this 6 day of June, 2006, between PIN
      PARTNERS PETROLEUM LTD, a company organized and existing under the laws of
      British Columbia (the “the Assignor”), and RANCHER ENERGY CORP., a company
      organized and existing under the laws of Nevada, USA. 

    

    

    WITNESSETH:

    

    WHEREAS,
      the Assignor has certain rights and
      obligations under the Exploration & Development Agreement dated June 5th,
      2006 (hereinafter referred to as the "Broadview Dome Agreement"),
      and

    

    WHEREAS,
      the Assignor wishes to assign all of
      its rights and obligations in the Broadview Dome Agreement to the Assignee,
      and

    

    WHEREAS,
      the Assignee accepts such assignment
      and has agreed to be bound by the Broadview Dome Agreement, 

    

    NOW,
      THEREFORE, in consideration of the mutual
      convenants and agreements contained herein, it is expressly agreed by the
      Assignor and the Assignee as follows:

    

    

    1.
      The Assignor hereby assigns and transfers to
      the Assignee all of its rights and obligations in, to, and under the Broadview
      Dome Agreement, subject to all the terms and conditions thereof.

    

    2.
      The Assignee hereby agrees to assume all of
      the Assignor's rights and obligations under the Broadview Dome
      Agreement.

     

    3.
      The Assignor reaffirms and represents that
      the Broadview Dome Agreement is valid and in full force and effect, and that
      the
      representations and warranties contained in the Broadview Dome Agreement are
      true and correct on the date hereof.

    

    4.
      As consideration for the assignment of the Broadview Dome Agreement, the
      Assignee agrees to (i) pay to the Assignor U.S.$ 250,000 within ninety (90)
      days
      from the date of this Assignment Agreement, and (ii) grant to the Assignor
      an
      overriding royalty interest in the sum of four percent (4%) from the Rancher
      share of hydrocarbons to be exploited pursuant to the Broadview Dome Agreement.
      

    

    5.
      By executing this Assignment Agreement, the
      Assignor and Assignee confirm (a) their intention to execute and deliver as
      promptly as practicable any other agreements with respect to this Assignment
      Agreement, and (b) to obtain the approval, agreement, and consent of their
      respective Boards of Directors or governing bodies with respect to this
      Assignment Agreement. 

    

    6.
      This Assignment Agreement shall be governed
      by the laws of the State of Montana, without giving effect to the principles
      of
      conflicts of law thereof.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        -
          2 -

        

      

    

     

    IN
      WITNESS WHEREOF, the Assignor and the
      Assignee have executed this Assignment Agreement on the date first written
      above.

     

     

    
 

    PIN
      PARTNERS PETROLEUM LTD

    

    By:
      _________________________

    Name:

    Title:

    

    

    RANCHER
      ENERGY CORP. 

    

    

    By: 
/s/
      John Works

    Name:
      John
      Works

    Title:
      President
& CEOEXHIBIT
      10.1

    

    

    Auditor’s
      Consent

    

    Statement
      by Experts

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CONSENT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

     

    We
      consent to the reference to our firm under the caption “Experts” and to the use
      of our report dated April 21, 2006, in the Form 20-FR Registration Statement
      dated June 20, 2006, Pursuant to Section 12(b) or 12(g) of the Securities and
      Exchange Act of 1934, of Poly-Pacific International Inc. for the registration
      of
      18,885,456 shares of its common stock.

     

    
      	 	 	 
	
            	
            	
              “Collins
                Barrow Edmonton LLP”

            
	
              Edmonton,
                Alberta

              June
                28, 2006

            	
              Signed

              Chartered
                AccountantsEXHIBIT
      10.1

     

    OPTION
      AGREEMENT

     

     

    THIS
      AGREEMENT is
      dated
      for reference as of the 28th
      day of
      June, 2006.

     

    AMONG:

     

    JOURNEY
      RESOURCES CORPORATION, a
      company
      duly organized pursuant to the laws of the Province of British Columbia and
      having an office at #1208 - 808 Nelson Street, Vancouver, British Columbia,
      V6Z
      2H2

     

    (“Journey”,
      and collectively with Jazz, the “Optionors”)

     

    OF
      THE
      FIRST PART

     

    AND:

     

    MINERALES
      JAZZ S.A. DE C.V., a
      corporation duly organized pursuant to the laws of Mexico and having an office
      at Avenida del Mar No. 1022 Oficina 5, Zona Costera, Mazatlan, Sin MEXICO
      82149

     

    (“Jazz”,
      and collectively with Journey, the “Optionors”)

     

    OF
      THE
      SECOND PART

     

    AND:

     

    WITS
      BASIN PRECIOUS MINERALS INC.,
      a
      company duly organized pursuant to the laws of the State of Minnesota and having
      an office at 900 IDS Center, 80 South 8th Street, Minneapolis, Minnesota,
      55402

     

    (the
      “Optionee”)

     

    OF
      THE
      THIRD PART

     

    WHEREAS:

     

    (A) The
      Optionors are the recorded and beneficial owners of an undivided 100% interest
      in and to certain mineral concessions situated in Guerrero State, Mexico to
      be
      known as the Vianey Mine Concession, as detailed in the specific description
      of
      the mineral concessions in Schedule “A” attached hereto (herein called the
“Property”);
      and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (B) The
      Optionors have agreed to grant an exclusive option to the Optionee to acquire
      up
      to a 50% undivided interest in and to the Property by paying certain
      consideration and by incurring certain exploration Expenditures on the Property
      upon the terms and conditions herein;

     

    NOW
      THEREFORE THIS AGREEMENT WITNESSES
      that in
      consideration of the covenants and agreements hereinafter set forth, and for
      other good and valuable consideration, the receipt and sufficiency which is
      hereby acknowledged, the parties agree as follows: 

     

    PART
      1

     

    DEFINITIONS

     

    1.1 In
      this
      Agreement, except as otherwise expressly provided or as the context otherwise
      requires:

     

    (a) “Area
      of Common Interest”
means,
      subject to Part 15, the area included within two (2) kilometres of the
      boundaries of the Property, but excluding any third party mineral claims in
      existence as of the Effective Date;

     

    (b) “Effective
      Date”
means
      the date first above written;

     

    (c) “Expenditures”
means
      all direct or indirect costs and expenses incurred by the Optionee in respect
      of
      prospecting and exploring the Property after the date of this Agreement pursuant
      to §2.2 hereof. The certificate of the Controller or other financial officer of
      the Optionee, together with a statement of Expenditures in reasonable detail
      shall be prima facie evidence of such Expenditures;

     

    (d) “Force
      Majeure”
has
      the
      meaning set forth in Part 11;

     

    (e) “Joint
      Venture”
means
      the joint venture to be formed between the Optionors and the Optionee in respect
      of the Property upon exercise of the Option and which is more particularly
      described in Part 6;

     

    (f) “Joint
      Venture Agreement”
means
      the Joint Venture Agreement containing, but not limited to,
      terms
      and conditions as set out in Part 6 to be entered into between the Optionee
      and
      the Optionors if the Optionee exercises this Option;

     

    (g) “Option”
means
      the exclusive right herein granted by the Optionors to the Optionee to permit
      the Optionee to acquire up to a 50% undivided interest in and to the
      Property;

     

    (h) “Option
      Period”
means
      the period from the
      Effective
      Date
      to and
      including the earliest of:

     

    (i) the
      date
      of exercise of the Option, or

     

    (ii) the
      termination hereof pursuant to Part 14;

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (i) “Property”
means
      the mineral concessions described in Schedule “A” (the “Property”) as they may
      be augmented pursuant to Part 15 (such augmenting claims or interests being
      referred to herein as the “Additional Property” and included as part of the
      Property), and all mining leases and other mining interests derived from any
      such claims, and a reference herein to a mineral claim comprised in the Property
      includes any mineral leases or other interests into which such mineral claim
      may
      have been converted and Property includes all Property Rights;

     

    (j) “Property
      Rights”
means
      all licenses, permits, easements, rights-of-way, surface or water rights and
      other rights, approvals obtained by either of the parties either before or
      after
      the date of this Agreement and necessary or desirable for the development of
      the
      Property, or for the purpose of placing the Property into production or
      continuing production;

     

    (k) “Registrable
      Securities”
      means
      the Shares, and all shares of common stock issued or issuable in respect of
      the
      Shares by virtue of any stock split, stock dividend, recapitalization or similar
      event, excluding Shares which have been (a) registered under the Securities
      Act
      of 1933 (the “Securities Act”) pursuant to an effective registration statement
      filed thereunder and disposed of in accordance with the registration statement
      covering them or (b) publicly sold pursuant to Rule 144 promulgated under the
      Securities Act;

     

    (l) “SEC”
      means
      the United States Securities and Exchange Commission; and

     

    (m) “Shares” means
      theshares
      of
      common
shares
      in
      the capitalstock
      of the
      Optionee which are issuable by the Optionee under this Agreement; 

     

    PART
      2

     

    GRANT
      AND EXERCISE OF OPTION

     

    2.1 Subject
      to the terms of this Agreement, the Optionors hereby grant to the Optionee
      the
      sole and exclusive right and option (the “Option”) to acquire up to a 50%
      interest in and to the Property, such 50% interest to be free and clear of
      all
      liens, charges, encumbrances, security interests and adverse claims arising
      from
      or through the Optionors, and subject to the laws applicable to the
      Property.
      

     

    2.2 In
      order
      to exercise the Option, the
      Optionee must:

     

    
      	 	
              (a)

            	
              issue
                500,000 Shares to
                Journey on or before June 30, 2006; 

            

    

     

    
      	 	
              (b)

            	
              on
                or before December 31, 2006, incur  Expenditures
                in
                the aggregate amount of USD$500,000
                pursuant to a work program commenced and operated by the Optionors,
                as
                outlined in the Blakestead Technical Report dated October 18, 2004
                and
                revised March 10, 2005;

            

      	 	 	 

      	 	(c)	on or before
              January 15, 2007, issue an
              additional 500,000 Shares to
              Journey; and

      	 	 	 

      	 	(d)	on or before September 30, 2007, incur additional
              Expenditures in
              the aggregate amount of
              USD$500,000 pursuant to a secondary work program commenced and operated
              by
              the Optionors, as recommended by the Optionors’
              consultants.

    

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    All
      Shares of the Optionee issuable to Journey hereunder,
      shall
      have
      piggy back rights and shall be the subject of a registration statement with
      the
      SEC, within sixty (60) days of the issuance of such Shares, or within such
      time
      as is reasonably practical and mutually agreed.

     

    PART
      3

     

    VESTING
      OF INTEREST

     

    3.1 Upon
      complying with all of the requirements set forth in §2.2,
      the
      Optionee will immediately be vested in and be deemed to legally and beneficially
      own a 50% interest in the Property,
      and a
      Joint Venture between the Optionors and the Optionee will be deemed to have
      been
      formed with terms and conditions of a Joint Venture Agreement to be negotiated
      in good faith upon terms and conditions as described in Part 6.

     

    3.2 Upon
      the
      Optionee satisfying only
      the
      obligations set forth in §2.2(a) and§2.2(b)
      above,
      the
      Optionee will immediately be vested in and be deemed to legally and beneficially
      own a 25% interest in the Property,
      and a
      Joint Venture between the Optionors and the
      Optionee will be deemed to have been formed with terms and conditions of a
      Joint
      Venture Agreement to be negotiated in good faith upon terms and conditions
      as
      described in Part 6.

     

    PART
      4

     

    TITLE
      TRANSFER

     

    4.1 Upon
      the
      Optionee exercising the Option
      by
      satisfying all of the requirements set forth in §2.2,
      the
      Optionors shall execute such documentation as the Optionee may prepare and
      reasonably request be executed under the laws of Mexico to
      record
      to the extent possible, the respective interests of each of the parties in
      the
      Property.

     

    4.2 Upon
      the
      Optionee satisfying the obligations set forth in §2.2(a) and §2.2(b), the
      Optionors shall execute such documentation as the Optionee may prepare and
      reasonably request be executed under the laws of Mexico to record to the extent
      possible, the respective interests of each of the parties in the
      Property.

     

    PART
      5

     

    OPERATOR’S
      FEE

     

    5.1 The
      Optionors in their capacity as operators of the work programs during the Option
      Period, to be conducted pursuant to §2.2, may charge a fee equal to ten percent
      (10%) of Expenditures.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    5.2 
      Such
      operator fee shall cover all of the Optionors’ home office overhead
      costs
      and
      all
      general and administrative expenses including telephone, faxes, and direct
      management
      salaries
      and wages.

     

    PART
      6

     

    FORMATION
      OF JOINT VENTURE

     

    6.1 
      If
      the
      Optionee satisfies all of the obligations set forth in
      §2.2,
      the
      Optionors and Optionee (each a “Participant”) shall be deemed to have formed a
      Joint Venture
      for the
      purpose of carrying out further exploration, development and production work
      on
      the Property, and shall negotiate in good faith the comprehensive terms of
      a
      Joint Venture Agreement, which shall include but not be limited to the general
      terms contained in this Part 6.

     

    

    6.2 The
      project shall be run on a 50%/50% basis or a 75%/25% basis (“Participating
      Interest”), whichever is applicable in accordance with the
      terms
      hereunder, with both Participants contributing to all costs in operating
      the Joint Venture in proportion
      to its percentage of undivided Participating Interest. The aggregate
      amount of Expenditures
      on the
      project at the point of execution of the Joint Venture Agreement will be deemed
      to be the current value of the project (the “PV”).
      The
      PV will be updated each time an additional
      expenditure
      is made.

     

     

    (a) if,
      at
      the time of formation of the Joint Venture, the Optionee has satisfied only
      those obligations set forth in §2.2(a)
      and §2.2(b), the Participants shall have the following initial Participating
      Interests in the Joint Venture:

    
 

    
      
        	
                Party

              	
                 

              	
                Participating
                  

                Interest

              	
                 

              	
                Deemed
                  Exploration Expenditures

              	
                 

              
	
                Optionee

              	
                 

              	
                 

              	
                25

              	
                %

              	
                 

              	
                25%
                  of PV

              	
                 

              
	
                Optionors

              	
                 

              	
                 

              	
                75

              	
                %

              	
                 

              	
                75%
                  of PV

              	
                 

              

      

    

     

    

     

    (b) if,
      at
      the time of formation of the Joint Venture, the Optionee has satisfied all
      of
      the requirements set forth in §2.2,
      the
      Participants shall have the following initial Participating Interests in the
      Joint Venture:

     

    
 

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

      
        	
                Party

              	 	
                Participating
                  

                Interest

              	 	
                Deemed
                  Exploration Expenditures

              	 
	
                Optionee

              	 	 	
                50

              	
                %

              	 	
                50%
                  of PV

              	 
	
                Optionors

              	 	 	
                50

              	
                %

              	 	
                50%
                  of PV

              	 

      

    

    

     

    6.3 
      Direction
      of the Joint Venture,
      including all
      operations on and in connection with the Property,
      shall be
      managed by the
      management
      committee (the “Management
      Committee”)
      comprised of one representative of the Optionors and one representative of
      the
      Optionee. All decisions of the Management Committee shall be made by simple
      majority of the votes cast. The representative of a Participant in the
      Management Committee shall have such number of votes as equals such party’s
      Participating Interest at the time of the vote. The
      party
      with the most Interest in the project shall have the deciding vote. In the
      case
      where the parties have an equal interest, the representative of the Operator
      shall have the deciding vote. The party with the deciding vote is the
“Manager”
and
      “Operator”.

     

    6.4 
      A
      Management Committee meeting must be held quarterly with at least one
      representative from each of the Optionors
      and Optionee present at the meeting
      to form
      a quorum. The Operator shall present a project update and budget
      at each
      quarterly.
      Meetings may
      be held
      in person or by telephone.

     

     

    6.5 
      A
      management
      fee
      shall be paid based on a percentage of Expenditures, as follows:

     

    
      	 	
              (a)

            	
              to
                Optionors during the Option Period:
                10%;

            

    

     

    
      	 	
              (b)

            	
              to
                Manager after Joint Venture formation: 5%
                for all qualified exploration expenditures incurred;
                and

            

    

     

    
      	 	
              (c)

            	
              to
                Manager after full feasibility report accepted: 5% for
                all qualified expenditures during construction, development and operations
                of the mine.

            

    

     

     

    The
      management fee shall cover all Manager’s office overhead
      costs
      and
      all
      general and administrative expenses including telephone, faxes, and direct
      management salaries
      and
      wages.

     

    

    6.6 The
      Optionors, until the Joint Venture Agreement is entered into, and the Manager
      after the Joint Venture Agreement
      is entered into may,
      at
      its
      discretion from time to time,
      invite
      the non-managing party to contribute to the agreed upon
      budget
      and participate in the then
      current work program.
      When this occurs,
      the
      non-managing party will invoice the Manager
      for the additional contributed amounts
      and no
      management fee will
      be
      applied to these funds.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    6.7 Funding
      of the project will be as follows:

     

    
      	
            	(a)	
              each
                party will contribute to all costs in proportion to
                its percentage of undivided Property interest (“Interest”)
                from time to time
                as
                determined by the Management Committee;

            

      	 	 	 

      	 	(b)	
              each
                Participant will have fifteen
                (15)
                days from the Management Committee’s approval date
                of
                each quarterly budget
                to
                elect to fund their respective share of the estimated capital costs
                or
                exploration costs. 50% of these funds must be provided prior to the
                expenditure commitment. The
                other 50% shall be provided once the Manager gives evidence of the
                expenditure;

            

      	 	 	 

      	 	(c)	if
              either Participant elects not to contribute their share of the capital
              costs or exploration costs of the project, then the other Participant
              has
              the right to contribute to the non-contributing Participant’s share of
              capital costs or exploration costs to the project
              resulting
              in a diluted
              ownership
              Interest of the non-contributing Participant, using the capital costs
              or
              exploration costs of the project as the denominator for dilution
              calculation purposes;

      	 	 	 

      	 	(d)	if
              the non-contributing Participant first elected to contribute their
              share
              of capital costs or exploration costs to the project and fails to do
              so
              for whatever reason, then this Participant is considered to be delinquent.
              In this case, an accelerated dilution formula will apply by using 50%
              of
              the capital costs or exploration costs of the feasibility study as
              the
              denominator for dilution calculation purposes; 

      	 	 	 

      	 	(e)	if at any time either Participant’s working
              Interest in the project is reduced below 10%, then their interest will
              automatically convert to a 5% net project interest (the “NPI”);
              and

      	 	 	 

      	 	(f)	the Operator shall be entitled to include
              in
              each budget, in addition to the amounts to be actually expended, the
              reasonably estimated cost of satisfying continuing obligations relating
              to
              environmental protection, rehabilitation, reclamation and
              de-commissioning.

    

     

     

    6.7 The
      Property
      shall
      be
      registered in the name of
      each
      Participant with each Participant’s Interest noted in such registration, or
      as
      required
      under Mexican law.

     

    6.8
       The
      Joint
      Venture Agreement will supersede this Agreement, provided that the
      provisions
      of Part
      9, as well as all rights and liabilities of each party in existence on the
      date
      on which the Joint Venture Agreement is entered into,
      shall
      continue thereafter.

     

    6.9
       In
      the
      event the parties are unable to negotiate the terms of the Joint Venture
      Agreement, the parties agree to refer the determination of the terms of such
      Agreement
      not
      agreed upon
      to
      binding arbitration as contemplated by Part 13.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    PART
      7

     

    ASSIGNMENT
      OF OPTION

     

    7.1 Subject
      to §7.2, each party shall have the right to assign, transfer, convey or
      otherwise dispose of all or part of its rights and interests in this
      Agreement,
      provided that as a condition precedent to such assignment, (i) the assignee
      shall execute a counterpart of this Agreement and thereby agree to be bound
      by
      the contractual terms hereof in the same manner and to the same extent as though
      a party hereto in the first instance; (ii) the assignor shall not be relieved
      or
      discharged of any of its obligations or liabilities hereunder and the other
      parties may continue to look to it for the performance thereof, and (iii) the
      assignor will subject any further assignment, transfer, conveyance or
      disposition of its rights and interests in this Agreement to
      the
      restrictions set out in this §7.1.

     

    7.2 If
      the
      Optionee wishes to assign, transfer, convey or otherwise dispose of all or
      part
      of its rights and interests in this Agreement pursuant
      to §7.1, it may do so only with the
      consent
      of
      the Optionors, such consent not to be unreasonably withheld.

     

    PART
      8

     

    RIGHT
      OF ENTRY

     

    8.1 Throughout
      the Option Period, the Directors and Officers of the Optionors and its servants,
      agents and independent contractors, will have the sole and exclusive right
      in
      respect of the Property to: 

     

    
      	 	
              (a)

            	
              enter
                thereon;

            

    

     

    
      	 	
              (b)

            	
              have
                exclusive and quiet possession
                thereof;

            

    

     

    
      	 	
              (c)

            	
              do
                such prospecting, exploration, development and/or other mining work
                thereon and thereunder as the Optionors in their sole discretion
                may
                determine advisable;

            

    

     

    
      	 	
              (d)

            	
              bring
                upon and erect upon the Property buildings, plant, machinery and
                equipment
                as the Optionors may deem advisable;
                and

            

    

     

    
      	 	
              (e)

            	
              remove
                therefrom and dispose of reasonable quantities of ores, mineral and
                metals
                for the purpose of obtaining assays or making other
                tests.

            

    

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    PART
      9

     

    OBLIGATIONS
      OF THE PARTIES DURING OPTION PERIOD

     

    9.1 During
      the Option Period the Optionors will:

    
       

      
        	 	
                (a)

              	
                maintain
                  the Property in good standing by the doing of the performance of
                  all
                  actions which may be necessary in that regard and in order to keep
                  such
                  mineral claims free and clear of all liens and other charges arising
                  from
                  the Optionors’ activities thereon except those at the time contested in
                  good faith by the Optionors,remove therefrom and dispose of
                  reasonable quantities of ores, mineral and metals for the purpose
                  of
                  obtaining assays or making other tests.

              

        	 	 	 

        	 	(b)	permit
                the directors, officers, employees and designated consultants of
                the
                Optionee, at their own risk, access to the Property at all reasonable
                times, and providing the Optionee agrees to indemnify the Optionors
                against and to save the Optionors harmless from all costs, claims,
                liabilities and expenses that may be incurred or suffered as a result
                of
                any injury (including injury causing death) to the Optionee and their
                respective employees or designated consultants while on the Property;

        	 	 	 

        	 	(c)	while exploration and development is carried out,
                furnish
                the Optionee with quarterly progress reports and with a final report
                within ninety
                (90)
                days following the conclusion of each
                work
                program which will be deemed to occur upon the verification of final
                assays. The final report shall show the exploration and development
                performed and the results obtained and shall be accompanied by a
                statement
                of costs and copies of pertinent plans, assay maps, drill records
                and
                other factual engineering data. All information and data concerning
                or
                derived from the exploration and development shall be kept confidential
                except as permitted under this
                Agreement;

        	 	 	 

        	 	(d)	deliver to the Optionors on or before six (6)
                months
                after each anniversary hereof, a report (including up-to-date maps
                if
                there are any) describing the results of work done in the last completed
                expenditure year, together with reasonable details of Expenditures
                made,

        	 	 	 

        	 	(e)	do all work on the Property in a good and workmanlike
                fashion and in accordance with all applicable laws, regulations,
                orders
                and ordinances of any governmental authority and file for all available
                assessment credits, and

        	 	 	 

        	 	(f) 	indemnify and save the Optionee harmless in respect
                of
                any and all
                costs, claims, liabilities and expenses arising out of the Optionors’
                activities on the Property.

      

       

    

     

    
      	 	
              9.2

            	
              During
                the Option Period the Optionee
                will:

            

    

     

    
       

      
        	 	
                (a)

              	
                Fulfill
                  the payment and expenditure requirements as set forth in §2.2
                  in
                  a timely manner
                  and within the time period prescribed;
                  and

              

        	 	 	 

        	 	(b)	indemnify the Optionors against and save the Optionors
                harmless from any and all costs, claims, liabilities and expenses
                that may
                be incurred or suffered as a result of any injury (including injury
                causing death) to the Optionee and its directors, officers, respective
                employees or designated consultants while on the
                Property.

      

       

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    PART
      10 

     

    REPRESENTATIONS
      AND WARRANTIES

     

    10.1 The
      Optionors jointly and severally represent and warrant to the Optionee
      that:

     

    
      	 	(a)	the Optionors have not entered into and are not
              aware of
              any other agreements in respect of the
              Property;

      	 	 	 

      	 	
              (b)

            	
              the
                mineral interests comprised in the Property have, to the best of
                the
                Optionors’ knowledge been duly and validly staked, recorded and issued
                pursuant to all applicable laws and regulations in Mexico and to
                the best
                of its knowledge are in good standing; 

            

    

     

    
      	 	
              (c)

            	
              all
                rentals, taxes, duties, royalties, assessments, charges or fees and
                other
                assessments and levies pertaining to the Property and required to
                be paid
                by law or regulation have been fully paid as of the Effective
                Date;

            

    

     

    
      	 	
              (d)

            	
              there
                are not any suits, actions, prosecutions, investigations or proceedings,
                actual, pending or threatened, against or affecting the Optionors
                that
                relate to or has an adverse effect on the
                Property;

            

    

     

    
      	 	
              (e)

            	
              any
                and all previous work conducted on the Property was conducted in
                accordance with all applicable environmental laws, orders and rulings,
                and
                there are no outstanding assessments or liabilities relating to past
                work
                conducted on the Property which are now, or in the future may be,
                payable
                by any party;

            

    

     

    
      	 	
              (f)

            	
              each
                of the Optionors has full power and absolute authority to grant to
                the
                Optionee the rights provided in this
                Agreement;

            

    

     

    
      	 	
              (g)

            	
              they
                have obtained all necessary corporate authorization for the execution
                of
                this Agreement and the performance of this Agreement by them;
                and

            

    

     

    
      	 	
              (h)

            	
              this
                Agreement constitutes a legal, valid and binding obligation of each
                of the
                Optionors; and

            

      	 	 	 

      	 	(i)	the Optionors have all necessary permits and
              authorizations under applicable law to carry on operations.

    

     

    10.2 The
      Optionee represents and warrants to the Optionors that:

    
       

      
        	 	
                (a)

              	
                the
                  execution and delivery of this Agreement and the exercise by the
                  Optionee
                  of the rights granted to it under this Agreement will not conflict
                  with or
                  result in a breach of or default under any agreement or other instrument
                  of obligation to which the Optionee is a party or by which it may
                  be
                  bound; 

              

        	 	 	 

        	 	
                (b)

              	it has obtained all necessary corporate authorization
                for
                the execution of this Agreement; and

        	 	 	 

        	 	
                (c)

              	this Agreement constitutes a legal, valid and
                binding
                obligation of the Optionee.

      

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    10.3 The
      representations and warranties contained in §10.1 are provided for the exclusive
      benefit of the Optionee and a breach of any one or more of them may be waived
      by
      the Optionee in writing in whole or in part at any time without prejudice to
      its
      rights in respect of any other breach of the same or any other representation
      or
      warranty.

     

    10.4 The
      representations and warranties contained in §10.2 are provided for the exclusive
      benefit of the Optionors and a breach of any one or more of them may be waived
      by each of the Optionors in whole or in part at any time without prejudice
      to
      their rights in respect of any other breach of the same or any other
      representation or warranty.

     

    PART
      11

     

    FORCE
      MAJEURE

     

    11.1 If
      the
      Optionee is at any time either during the Option Period prevented or delayed
      in
      complying with the Expenditure
      requirement provisions of this Agreement in §2.2 by reason of strikes,
      walk-outs, labour shortages, power shortages, fuel shortages, fires, wars,
      acts
      of God, governmental regulations restricting normal operations, shipping delays
      or any other reason or reasons beyond the control of the Optionee (and for
      greater certainty excluding factors related to a lack of funding), the time
      limited for the performance by the Optionee of its obligations hereunder will
      be
      extended by a period of time equal in length to the period of each such
      prevention or delay, provided however that nothing herein will discharge the
      Optionee from its obligation to timely pay the share consideration under §2.2(a)
      or §2.2(c).

     

    11.2 The
      Optionee will within seven
      (7)
      days
      of a force majeure event as set forth in §11.1
      give
      notice to the Optionors of such
      event
      and
upon
      cessation of such event will furnish the Optionors with notice to that effect
      together with particulars of the number of days by which the obligations of
      the
      Optionee hereunder have been extended by virtue of such event of force majeure
      and all preceding events of force majeure.

     

    PART
      12

     

    CONFIDENTIALITY

     

    12.1 Subject
      to §12.2
      all
      information received or obtained by the Optionee or the Optionors hereunder
      or
      pursuant hereto shall be kept confidential and no part thereof may be disclosed
      or published without the prior written consent of the other except such
      information as may be required to be disclosed or published by law or
      regulation; provided that either party may disclose information to any person
      or
      persons with whom it proposes to contract pursuant to Part 7 and have agreed
      to
      hold the same in confidence, it being agreed that prior to such disclosure,
      the
      non-disclosing party shall receive notice thereof and a copy of the
      confidentiality agreement executed by the person or persons with whom the
      disclosing party proposes to contract pursuant to Part 7.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    12.2 Confidential
      information shall not include the following:

     

    (a) information
      that, at the time of disclosure, is in the public domain;

     

    (b) information
      that, after disclosure, is published or otherwise becomes part of the public
      domain through no fault of the recipient;

     

    (c) information
      that the recipient can show already was in the possession of the recipient
      at
      the time of disclosure; or

     

    (d) information
      that the recipient can show was received by it after the time of disclosure,
      from a third party who was under no obligation of confidence to the disclosing
      party at the time of disclosure.

     

    12.3 Except
      as
      required by law or regulatory authority, neither party shall make any public
      announcements or statements concerning this Agreement or the Property without
      the prior approval of the other, not to be unreasonably withheld.

     

    12.4 The
      text
      of any public announcements or statements including news releases which a party
      intends to make pursuant to the exception in §12.3 shall be made available to
      the other party not less than twenty-four
      (24)
      hours
      prior to publication and the disclosing party shall limit or amend such
      disclosure as may be requested by the non-disclosing parties to the extent
      such
      limitation or amendment allows the disclosing party to meet its legal
      obligations. If either of the Optionors or their affiliates (including parent
      corporations) are identified in such public announcement or statement it shall
      not be released without the consent of the relevant Optionor in writing. Neither
      party may issue a release containing a factual error identified by the other
      party.

     

    PART
      13

     

    ARBITRATION

     

    13.1 All
      questions or matters in dispute with respect to the interpretation of this
      Agreement will, insofar as lawfully possible, be submitted to arbitration
      pursuant to the terms hereof using “final offer” arbitration
      procedures.

     

    13.2 It
      will
      be a condition precedent to the right of any party to submit any matter to
      arbitration pursuant to the provisions hereof, that any party intending to
      refer
      any matter to arbitration will have given not less than ten
      (10)
      days’
prior written notice of its intention so to do to the other party together
      with
      particulars of the matter in dispute.

     

    13.3 On
      the
      expiration of such ten
      (10)
      day period,
      the
      party who gave such notice may proceed to commence procedure in furtherance
      of
      arbitration as provided in this Part 13.

     

    13.4 The
      party
      desiring arbitration (“First Party”) will nominate in writing three (3)
      proposed
      arbitrators, and will notify the other party (“Second Party”) of such nominees,
      and the other party will, within ten
      (10)
      days
      after receiving such notice, either choose one (1)
      of
      the
      three
      (3)
      or
      recommend three (3)
      nominees
      of its own. All nominees of either party must hold accreditation as either
      a
      lawyer, accountant or mining engineer
      with a
      minimum of ten (10) years’ experience in their given profession.
      If the
      First Party fails to choose one of the Second Party’s nominees,
      then all
      six (6)
      names
      shall be placed into a hat and one name shall be randomly chosen by the
      president of the First Party and that person,
      if
      he/she is prepared to act,
      shall be
      the nominee. Except as specifically otherwise provided in this Part 13,
      the
      arbitration herein provided for will be conducted in accordance with the
Commercial
      Arbitration Act
      (British
      Columbia). The parties shall thereupon each be obligated to proffer to the
      arbitrator within twenty-one
      (21)
      days of
      his/her appointment a proposed written solution to the dispute and the
      arbitrator shall within ten
      (10)
      days of
      receiving such proposals choose one of them without altering it except with
      the
      consent of both parties.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    13.5 The
      expense of the arbitration will be paid as specified in the award.

     

    13.6 The
      parties agree
      that the award of the arbitrator will be final and binding upon each of
      them.

     

    PART
      14

     

    DEFAULT
      AND TERMINATION

     

    14.1 The
      Optionors may terminate this Agreement in the event of a material
      breach
      of
      any term or condition of this Agreement by the Optionee, which material
      breach
      is
      not corrected within thirty
      (30)
      days of
      the receipt by the Optionee of written
      notice
      which describes such breach in reasonable detail.

     

    14.2 If
      this
      Agreement is terminated, the Optionee shall:

    
       

      
        	 	
                (a)

              	
                forthwith
                  discharge all amounts due and owing to Optionors and third parties in
                  connection with the Operations;

              

        	 	 	 

        	 	(b)	within 180 days deliver to the Optionors copies
                of all
                reports, maps, plans, photographs and drill logs of the Optionee
                relating
                to the Property, provided that the Optionee does not make any
                representation or warranty concerning the accuracy or completeness
                thereof; and

        	 	 	 

        	 	(c)	within the said 180 days remove from the Property
                any
                machinery, buildings, structures, facilities, equipment and all other
                Property of every nature and description erected, placed or situated
                thereon by the Optionee; any Property not so removed at the end of
                the 180
                day period shall, at the written option of the Optionors delivered
                to the
                Optionee, become the Property of the
                Optionors.

      

       

    

     

    14.3 If
      the
      Optionee is prevented from or delayed in performing its obligations in
§14.2(b)or §14.2(c)
      by a
      force
      majeure event as set forth in §11.1,
      the
      relevant period of 180 days referred to therein shall be extended by the period
      of the
      force
      majeure event.

     

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    PART
      15 

     

    AREA
      OF COMMON INTEREST

     

    15.1 There
      shall exist an area of common interest within the area included within two
      (2)
      kilometres of the boundaries of the Property (as detailed in the specific
      description of the mineral concessions attached hereto as Schedule “A”), but
      excluding any third party mineral claims existing as of the Effective Date.
      If
      either party (or permitted assignee hereof) acquires any mineral rights within
      such area by staking or by the granting of such additional prospecting permits,
      they shall, at the election of the other party (made by it within twenty
      (20)
      days of
      written notice), be made part of the Property for all purposes and may be
      referred
      to as
      Additional Property. 

     

    PART
      16

     

    REGISTRATION
      RIGHTS

     

    16.1 Subject
      to the terms, conditions and limitations set forth herein, following the date
      that the Optionee is required to make an issuance of Shares under this Agreement
      (an “Issuance Date”), the Optionee will use commercially reasonable efforts to
      file one or more registration statements with the SEC in the appropriate form
      (each a “Resale Registration Statement”) within sixty
      (60)
      days
      following such Issuance Date (a “Filing Date”) to allow the resale of the
      Registrable Securities under the Securities Act, and use its commercially
      reasonable efforts to
      have
      such Resale Registration Statement declared effective by the SEC as soon as
      practicable following the Filing Date and, in any event, prior to the date
      which
      is 180 days after each applicable Issuance Date. 

     

    16.2 If,
      following an Issuance Date, the Optionee shall determine to prepare and file
      with the SEC a registration statement relating to an offering of common stock
      for its own account under the Securities Act
      (an
“Optionee Registration Statement”), then the Optionee shall send to the
      Optionors written notice, at least twenty
      (20)
      business
      days prior to the filing of such registration statement, of such determination
      and that all or part of such Registrable Securities then held by the Optionors
      may be included in such registration statement at the Optionors’ request. And
      if, within fifteen
      (15)
      business
      days after delivery of such notice, the Optionors shall so request in writing,
      the Optionee shall include in such registration statement the resale of the
      Registrable Securities requested by the
      Optionors to be so included. Such written notice shall state the intended method
      of disposition of the Registrable Securities by the Optionors. 

     

    PART
      17

     

    NOTICES

     

    17.1 Each
      notice, demand or other communication required or permitted to be given under
      this Agreement (“Notice”) to the Optionors or the Optionee by the other shall be
      in writing and will be sent by personal delivery, fax or prepaid registered
      mail
      to the addresses of the parties as follows:

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              if
                to the Optionors:

            

    

     

    #1208
      -
      808 Nelson Street

     

    Vancouver,
      British Columbia V6Z 2H2

     

    Facsimile:
      [(604)
      633-2462]

     

    Attention:
      [Jack
      Bal]

     

    
      	 	
              (b)

            	
              if
                to the Optionee:

            

    

     

    900
      IDS
      Center, 80 South 8th Street

     

    Minneapolis,
      Minnesota, USA 55402

     

    Facsimile:
      [(612)
      395-5276]

     

    Attention:
      [H.
      Vance White]

     

    17.2 The
      date
      of receipt of such Notice will be the date of delivery or fax thereof if
      delivered or faxed during business hours, or, if given by registered mail as
      aforesaid, will be deemed conclusively to be the third day after the same will
      have been so mailed except in the case of interruption of postal services for
      any reason whatever, in which case the date of receipt will be the date on
      which
      the Notice is actually received by the addressee.

     

    17.3 Either
      party may at any time and from time to time notify the other party in writing
      of
      a change of address and the new address to which Notices will be given to it
      thereafter until further change.

     

    PART
      18

     

    GENERAL

     

    18.1 This
      Agreement is subject to the approval of the Board of Directors of each of the
      Optionors and the Optionee, and acceptance of the TSX Venture Exchange if
      required.

     

    18.2 This
      Agreement will supersede and replace any other agreement or arrangement, whether
      oral or written, heretofore existing between the parties in respect of the
      subject matter of this Agreement.

     

    18.3 No
      consent or waiver expressed or implied by either party in respect of any breach
      or default by the other in the performance of such other of its obligations
      hereunder will be deemed or construed to be a consent to or a waiver of any
      other breach or default.

     

    18.4 The
      parties will promptly execute or cause to be executed all documents, deeds,
      conveyances and other instruments of further assurance which may be reasonably
      necessary or advisable to carry out fully the intent of this Agreement or to
      record wherever appropriate the respective interests from time to time of the
      parties in the Property.

     

    18.5 This
      Agreement
      will inure
      to the
      benefit of and be binding upon the parties and their respective successors
      and
      assigns, subject to the conditions hereof.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    18.6 This
      Agreement will be construed in accordance with the laws of the Province of
      British Columbia and the laws of Canada applicable therein.

     

    18.7 All
      sums
      of money referred to herein are expressed in United States
      currency.

     

    18.8 The
      headings appearing in this Agreement are for general information and reference
      only and this Agreement will not be construed by reference to such
      headings.

     

    18.9 In
      interpreting this Agreement and Schedule “A” hereto attached, where the context
      so requires, the singular will include the plural, and the masculine will
      include the feminine, the neuter, and vice versa.

     

    18.10 Nothing
      herein will constitute or be taken to constitute the parties as partners or
      create any fiduciary relationship between them.

     

    18.11 No
      modification, alteration or waiver of the terms herein contained will be binding
      unless the same is in writing, dated subsequently hereto, and fully executed
      by
      the parties.

     

    
      18.12
        This Agreement may be executed in counterpart and by
        facsimile.

    

     

    

     

    IN
      WITNESS WHEREOF
      this
      Agreement has been executed on behalf of the Optionors and the Optionee by
      their
      duly authorized officers on the 28th day of June, 2006.

     

    

     

    WITS
      BASIN PRECIOUS MINERALS INC.

     

    Per: /s/
      H.
      Vance White

    Authorized
      Signatory

     

    JOURNEY
      RESOURCES CORPORATION

     

    Per: /s/
      Jack Bal

    Authorized
      Signatory

     

    MINERALES
      JAZZ S.A. DE C.V.

     

    Per: /s/
      Jack Bal

    Authorized
      Signatory

     

    

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “A”

    

    Mineral
      Concessions Comprising The Property

    

    

    

    The
      Vianey Mine Concession located in Guerrero State, Mexico.

    

    The
      concession constitutes 5,022 contiguous hectares(1),
      centered on UTM coordinates 431,330m E, 1,987,020m N (WGS 84, Zone 14), or
      -99.6485 degrees E, 17.9704 degrees N. The property is held under Exploitation
      concession (Number 164151, Exp. No. 5929, issued March 5, 1979).

    

    Minerales
      Jazz S.A. de C.V. (a wholly owned subsidiary of Journey Resources Corporation)
      acquired 100% interest in the property from Minera LMX, Minera Chilpancingo,
      S.A. de C.V. and the underlying owner, Mr. Jorge Briones de Garcia, in
      2004.

    

    (1)
      Amended
      to include the additionally held claims in the area of interest, notwithstanding
      that they may be held at this time under the name of a third party. Such
      additional claims are currently in the process of being transferred into the
      name of Minerales Jazz S.A. de C.V.

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