Document:

Exhibit 10.62

 

	
  

  	
   

                   SCHEDULE A

   

   

   

   

   

  

  1 Dundas Street West, Suite 2402, Bos 10, Toronto, Ontario M5G 1Z3 (410) 977-1502 FAX (410) 977-0000

  

 

January 27, 1993

 

Messrs. Francis J. L. Guardia
and

John W. Perston

General Araya No. 7

Colonia La Huerta

Hemosillo, Sonora

 

Gentleman:

 

This letter agreement is
intended to supersede and replace all prior agreements entered into between
Minefinders and Messrs. Guardia and Perston or G & P International
(hereafter referred to as “G&P”). There are no representations, warranties,
forms, conditions, undertakings or collateral agreements, express, implied or
statutory, between the parties other than expressly set forth herein.

 

In consideration for G&P
presenting and negotiating, on Minefinders’ behalf, the acquisition of the
Dolores Option Agreement with Sr. Liábano Saenz pertaining to the Property set
out in Schedule “A” which is incorporated herein by reference, Minefinders
agrees that G&P will be entitled to receive, following signature of the
Dolores Option Agreement and subject to regulatory approval, eighty thousand
(80,000) Minefinders treasury shares, issuable as follows:

 

1)                         twenty thousand
(20,000) common shares following signature and regulatory approval;

 

2)                         thirty thousand
(30,000) common shares upon initiation by Minefinders of a phase 2 drilling
program (i.e. following a successful, phase 1 initial drilling program);

 

3)                         thirty thousand
(30,000) common shares following a positive production decision.

 

In addition, Minefinders
agrees to grant to G&P  a one
and one quarter percent (1-1/4%) net smelter return (“NSR”) on all gold
production achieved from the Dolores Project, following a positive production
decision by Minefinders. The calculation of the NSR is set out in Schedule “B”
and is incorporated herein by reference.

 

.
.. ./2

 

1

 

Minefinders acknowledges and
agrees that G&P are not making any representations or warranties with
respect to the quality or soundness of the Dolores Project.

 

Neither party is the agent
or representative of the other and accordingly shall have no right or authority
to pledge the credit of the other or deal in any way on the others’ behalf.

 

G&P acknowledge that Minefinders
has paid in full all sums due and owing for services rendered by G&P up to
the date hereof.

 

Minefinders may wish to
engage G&P to act as independent professional contractors, to assist in the
management and execution of exploration programs on the Dolores Project, on
terms to be mutually agreed to in writing, in advance.

 

The parties hereto
acknowledge and agree that the engagement of G&P hereunder was on an
exclusive basis and will preclude G&P from providing similar services to
other clients for a period of two (2) years from the date hereof with
respect to any properties within 8 kilometres of the perimeter of the Delores
Project (the “Area of interest”) without first obtaining the written consent of
Minefinders.

 

Notwithstanding the prohibition
set forth in the preceding paragraph, if C&P,  directly or indirectly, acquire, lease, or otherwise obtain
or control any interest in public or private land or mineral rights on lands
within the Area of Interest, within 2 years from the date hereof, other than
with the prior written consent of Minefinders, you shall notify Minefinders
within thirty (30) days immediately following the date of such acquisition and
you or your affiliate shall convey such interest to Minefinders or its
designate in such manner as Minefinders may direct, as soon as practicable
thereafter, in consideration of the payment by Minefinders to you or such
affiliate, as the case may be, of the sum of Cdn $1.00.

 

Any notice or other
communication pertaining to this agreement will be in writing and will be given
by, facsimile, addressed as follows:

 

	
  If
  to G&P:

  	
   

  
	
   

  	
  General Araya No. 7,
  Colonia La Huerta

  
	
   

  	
  Hermosillo, Sonora

  
	
   

  	
   

  
	
   

  	
  Facsimile:       (416)
  597-0773

  

 

.
.. ./3

 

2

 

	
  If to Minefinders:

  
	
   

  
	
   

  	
  1 Dundas St. West

  
	
   

  	
  Toronto, Ontario

  
	
   

  	
  M5G 1Z3

  
	
   

  	
   

  
	
   

  	
  Attention:

  	
  The President

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  (416) 977-4653

  

 

Any such notice will be
deemed to have been delivered and received on the day following the day it was
sent. Any such notice or communication may also be served in person by
delivering the same to a responsible person at the address specified above of
the party to be served and will be deemed delivered and received at the time of
service. Any party may change its address for service by notice in writing to
the other.

 

This agreement shall be
governed and construed in accordance with the laws of the Province of Ontario.

 

If the foregoing is in
accordance with your understanding, please sign this letter and return the
duplicate hereof to us. Whereupon this letter will form a binding agreement.

 

	
  Yours
  truly,

  	
   

  
	
   

  	
   

  
	
  MINEFINDERS
  CORPORATION LTD.

  	
   

  

 

 

	
  /s/ Marc C. Henderson

  	
   

  
	
  Marc C. Henderson

  	
   

  
	
  President

  	
   

  

 

 

	
  /s/ Richard D. Williams

  	
   

  
	
  Richard D. Williams

  	
   

  
	
  Vice-President

  	
   

  

 

 

This foregoing is accepted
as of the date first above written.

 

 

	
  /s/ Francis J. L. Guardia

  	
   

  
	
  Francis J. L. Guardia

  	
   

  

 

 

	
  /s/ John W. Perston

  	
   

  
	
  John W. Perston

  	
   

  

 

3

 

SCHEDULE
A

 

DOLORES
PROJECT PROPERTY DESCRIPTION

 

The following described mining
concessions (the “Property”), all of which are located in the Madera Mining
District of the State of Chihuahua, Mexico:

 

	
  NOMBRE del LOTE

  	
   

  	
  EXPEDIENTE

  	
   

  	
  TITULO

  	
   

  	
  SUPERFICIE

  
	
  Alma Maria

  	
   

  	
  E.-19557

  	
   

  	
  T.-171947

  	
   

  	
  6-00-00
  Has.

  
	
  Real Cananea Uno

  	
   

  	
  E.-19412

  	
   

  	
  T.-172084

  	
   

  	
  179-77-93
  Has.

  
	
  Roal Cananoo

  	
   

  	
  E.-19412

  	
   

  	
  T.-172084

  	
   

  	
  394-00-00
  Has.

  
	
  San Judas Tadeo

  	
   

  	
  E.-19400

  	
   

  	
  T.-172083

  	
   

  	
  150-00-00
  Has.

  
	
  Ampl. Real Cananea Uno

  	
   

  	
  E.-19528

  	
   

  	
  T.-172087

  	
   

  	
  360-00-00
  Has.

  
	
  Ampl. Real Cananea Dos

  	
   

  	
  E.-19528

  	
   

  	
  T.-172087

  	
   

  	
  480-00-00
  Has.

  
	
  Ampl. Real Cananea

  	
   

  	
  E.-19528

  	
   

  	
  T.-172087

  	
   

  	
  350-22-09
  Has.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Superficie
  Total

  	
   

  	
  1920-00-02
  Has.

  

 

 

 

[Illegible]

 

 

EXHIBIT B

 

NET
SMELTER RETURN ROYALTY

(“NSR”)

 

1.1           In the agreement, NSR means the net amount of money
received by Minefinders for its own account from the sale of ore, or ore
concentrates or other products from the claims to a smelter or other ore buyer
after deduction of smelter and/or refining charges, penalties and any and all
charges made by the purchaser of ore or concentrates, less any and all
transportation costs to the refinery which may be incurred in connection with
the transportation of concentrates, less all umpire charges which the purchaser
may be required to pay; it being understood that the cost of milling,
concentration, transportation to the mill or mining will not be deducted in
computing net smelter returns.

 

2.1           Payment of the NSR by Minefinders to G & P shall
be made quarterly within 45 days after the end of each quarter and shall be
accompanied by unaudited financial statements pertaining to the operations
carried out by Minefinders on the claims. Within 90 days after the end of each
fiscal year of Minefinders in which the royalty is payable to G & P,
the records relating to the calculation of the royalty for such year shall be
audited and any resulting adjustments in the payment of the royalty payable to
G & P shall be made forthwith. A copy of the said audit shall be
delivered to G & P within 30 days of the end of such 90-day period.

 

3.1           Each annual audit shall be final and  not subject to adjustments unless G &
P delivers to Minefinders exceptions in reasonable detail within 6 months after
G & P receives the report; G & P, or its representatives duly
authorized in writing, at their expense, shall have the right to audit the
books and records of Minefinders related to the NSR to determine the accuracy
of the report, but shall not have access to any other books and records of
Minefinders. The audit shall be conducted by an independent chartered or
certified public accountant of recognized standing. G & P shall have
the right to condition access to its books and records on execution of a
written undertaking by the auditor that all information will be held in confidence
and used solely for the purposes of audit and resolution of any disputes
related to the report.

 

3.2           A copy of G & P’s
report shall be delivered to Minefinders upon completion, and any
discrepancy between the amount actually paid by G & P and the amount
which should have been paid according to the G & P’s report shall be
paid forthwith, one party to the other. In the event that the said discrepancy
is to the detriment of G & P and exceeds 5% of the amount actually
paid by Minefinders, then Minefinders shall pay the entire cost of the audit.

 

.
.. ./2

 

 

4.1           No error in accounting or in interpretation of the
agreement shall be the basis for a claim of breach of fiduciary duty, or the
like, or give rise to a claim for exemplary or punitive damages or for
termination or [Illegible] of the agreement or the estate and rights acquired
and held by Minefinders under the terms of the agreement.

 

2Exhibit 10.63

 

[ENGLISH
TRANSLATION]

 

JOSÉ
MANUEL GÓMEZ DEL CAMPO LÓPEZ, ESQ.

ADRIÁN
R. ITURBIDE GALINDO, ESQ.

NOTARÍAS
ASOCIADAS 136 Y 139

DEL
DISTRITO FEDERAL

 

INSTRUMENT No. 53,360

BOOK No. 1696

 

IN MEXICO CITY, FEDERAL DISTRICT,
on the 13th day of the month of October of the year
2006, before me, ADRIÁN ROGELIO ITURBIDE GALINDO, Esq., head of Civil Law
Notary Public’s Office No. 139 in this Federal District, acting by
association agreement in the Notarial Record Book of Civil Law Notary Public’s
Office No. 136 headed by Mr. José Manuel Gómez del Campo López, Esq.,
appeared on one part, Mr. LIÉBANO SÁENZ ORTIZ and on the other part, “COMPAÑÍA
MINERA DOLORES”, SOCIEDAD ANÓNIMA DE CAPITAL VARIABLE, represented by its
attorney-in-fact, Mr. VÍCTOR GARCÍA JIMÉNEZ.

 

The appearing parties presented to the undersigned
Civil Law Notary Public, five counterparts of a Mining Rights Purchase
Agreement dated October 13, 2006, entered into by and between Mr. LIÉBANO
SÁENZ ORTIZ (“SELLER”) and “COMPAÑÍA MINERA DOLORES”, SOCIEDAD ANÓNIMA DE
CAPITAL VARIABLE, herein represented by its attorney-in-fact Mr. VÍCTOR
GARCÍA JIMÉNEZ (“PURCHASER”), with respect to the existing mining concession on
the lot called “UNIFICACIÓN REAL CANANEA”, Title No. 227,028 with a
surface area of one thousand nine hundred [sic] hectares, zero ares, zero
centiares (1920.0000 hectares)  [sic]
located in the Madera Municipality, State of Chihuahua, and that substituted
the following mining concessions:

 

“ALMA DE MARÍA”, Title No. 191,728.

“REAL CANANEA UNO”
Title No. 184,982.

“REAL CANANEA” Title No. 184,981.

“SAN JUDAS TADEO” Title
No. 184, 983.

“AMPL. REAL CANANEA UNO”
Title No. 184,985.

“AMPL. REAL CANANEA DOS”,
Title No. 184,986, and

“AMPL. REAL CANANEA”, Title No. 184,984, under
the terms and conditions specified in the same Agreement.

 

The representative of “COMPAÑÍA MINERA DOLORES”,
SOCIEDAD ANÓNIMA DE CAPITAL VARIABLE, stated that he has made certain that the
concessions subject matter of the agreement being ratified are in effect and
that its titleholder is up to date in the performance of its obligations

 

The appearing parties hereby recognize the signatures
on such instruments as their own because they were set with their own hands and
RATIFY THE CONTENTS OF THE FULL DOCUMENT, same documents that were annotated
with the pertaining

 

 

certification and of them I return four counterparts
to the concerned parties and I add one counterpart to the appendix of the
Notarial Record Book marked with letter “A” and the number of this instrument.

 

LEGAL CAPACITY

 

Mr. VÍCTOR GARCÍA JIMÉNEZ evidences the powers
and authorities conferred upon him by “COMPAÑÍA MINERA DOLORES” SOCIEDAD
ANÓNIMA DE CAPITAL VARIABLE”, with Legal Instrument 38,590 dated March 10,
1997, witnessed and certified by the undersigned Notary and recorded in the
Notarial Record Book of Civil Law Notary Public’s Office No. 136 where I
act as an Associate and headed by Mr. José Manuel Gómez del Campo López, Esq.,
registered in the Public Commercial Registry in this capital city, under Mercantile
Folio No. 220,279, on May 16, 1997, wherein prior permit from the
Ministry of Foreign Affairs (Secretaría de Relaciones
Exteriores), “COMPAÑÍA MINERA DOLORES”, SOCIEDAD ANÓNIMA DE CAPITAL
VARIABLE, domiciled in Mexico City, Federal District, was incorporated with a
99-year duration, with a fixed minimum variable capital of FIFTY THOUSAND
MEXICAN PESOS, National Currency, unlimited maximum amount, including the
foreigner participation clause. From such legal instrument I copy the relevant
text as follows

 

“.......2.        The
purpose of the corporation is: I. To purchase, sell, lease, acquire, transfer,
assign, explore, apply for registration of a mining claim, operate, manage,
exploit a mine and process minerals and in general to trade or do business, in
any other manner, with mining enterprises or properties of any type, and with
mines of all kinds of metals, metalloids and non-metallic minerals, including
exploitation of tailings and dumping areas. II. To acquire, own, lease, assign
or transfer, manage and sell all kinds of mining concessions and applications
for mining concessions, licenses, authorizations, franchises, easements,
leases, rights and interests of all kinds and nature, and also the personal and
real property required for the achievement of the purposes of the corporation.
III: To purchase, sell, import, export and in general to do business and trade
with all kinds of metals, metalloids and non-metallic minerals. IV. To
establish, acquire, own, operate and manage mills, beneficiation plants, plants
in general, smelting sites, energy and power production plants, warehouses,
storehouses and in general the real estate, buildings, establishments,
facilities and equipment required, or convenient for the accomplishment of the
corporate purposes. V. To give or take loans, secured or unsecured, issue
bonds, stock, obligations, securities and other negotiable instruments, with
the intervention, if that is the case, of the institutions set forth in the Law
and also to lawfully acquire and trade with all kinds of merchandise and goods
and grant the securities required to achieve the purposes of the corporation.
VI. To provide mining companies, mining/metallurgical companies and in general
industrial and commercial enterprises, with all kinds of technical, management
or supervision services, whether in Mexico or abroad and to receive such
services. VII. In general, to carry out any transactions arising from or
related to the above mentioned corporate purposes and to that effect to carry
out all kinds of commercial and industrial transactions and execute all kinds
of agreements whether of a civil or commercial nature permitted by the Law.
--------24. POWERS AND AUTHORITIES. The Sole Administrator or the Board of
Directors, as the case may be, shall have the following powers and
authorities...... X. In general and without detriment to the preceding powers and
authorities, it shall have all the POWERS AND AUTHORITIES indicated below:
............. b). MANAGE 

 

2

 

PROPERTY, with all the general and special powers and
authorities that require a power-of-attorney or a special clause according to
the Law, under the terms of second paragraph of Article 2,554 of the Civil
Code in effect for the Federal District, including any relevant Articles of the
Civil Codes of the States of the Mexican Republic.  c). FOR LITIGATIONS AND COLLECTIONS with all
the general and special powers and authorities that require a special
power-of-attorney or clause according to the Law under the terms of the first
paragraph of Article 2,554 of the Civil Code for the Federal District,
including those in Articles 2,582 and 2,587 of the same Code and any relevant
articles of the Civil Codes of the States of the Mexican Republic.  Without limitation, they shall have the
following powers and authorities, among others: to file and withdraw all kinds
of actions, remedies, litigations and proceedings, even amparo
proceedings; to settle, challenge jurisdiction, receive payments, submit to
arbitration, submit and answer interrogatories, file actions and complaints on
criminal matters and to withdraw them, grant pardons and assist the Attorney
General as coadjutor, demand the performance of all the obligations assumed on
behalf of the principal. The power may be exercised before individuals and
before all kinds of federal or local authorities, whether administrative, labor
or judicial and before the Conciliation and Arbitration Board (Junta de Conciliación y Arbitraje).

 

.........g).....To confer general or special powers-of-attorney
and to revoke them...........TRANSITORY.........2. 
By unanimous vote the shareholders’ meeting agreed on the
following:.............D.  Messrs. VÍCTOR
GARCÍA JIMÉNEZ, Esq. and ......... are granted in order for them to exercise it
jointly or individually a GENERAL POWER-OF-ATTORNEY with the powers and
authorities referred to in paragraphs b), c) and f) of Section X (Roman
numeral) of Clause 24 of the Bylaws. Also, a special power-of-attorney is
conferred upon them to open bank accounts, draw checks or designate the person
who may draw checks on such accounts, being empowered to carry out all the
actions and sign and collect all the documents required to achieve the purpose
of this power-of-attorney..  .............”

 

I, THE NOTARY HEREBY CERTIFY AND ATTEST:

 

I.                                         That I identified myself with the appearing parties as Civil Law Notary
Public in the Federal District and let them know the penalties applicable to
those who make misrepresentations.

 

II:                                     That I am well acquainted with the appearing parties who based on their
personal information stated the following:

 

Mr. VÍCTOR GARCÍA JIMÉNEZ, Esq., of Mexican
nationality, from this city where he was born on January 11, 1942,
married, attorney-at-law, domiciled at San Francisco No. 656, Despacho
601, Colonia del Valle, Delegación Benito Juárez, Código Postal 03100, Distrito
Federal. Registered in the Federal Taxpayers’ Registry with No. GAJV-420111-M53.

 

Mr. LIÉBANO SÁENZ ORTIZ, Esq., of Mexican
nationality, born in Casas Grandes, State of Chihuahua, where he was born on July 22,
1949, married under the separation of property marital system, attorney-at-law
and public servant, domiciled at Gutenberg No. 147, Colonia Anzures,
Código Postal No. 11590, Delegación Miguel Hidalgo, Distrito Federal.
Registered in the Federal Taxpayers’ Registry with No. SAOL-490722-2WA.

 

3

 

III:                                 That to the best of my knowledge the appearing parties have legal capacity
since I did not notice any signs of natural disability and have not heard that
they are subject to civil disability, adding Mr. Víctor García Jiménez, Esq.,
that the corporation he represents is fully qualified and that the
representation conferred upon him and whereby he acts, is in effect in all its
terms.

 

IV. That Mr. Víctor García Jiménez, Esq., hereby
declares that there is foreign participation in the company he represents,
evidencing such statement with a Certificate of Temporary Renewal of
Registration in the National Registry of Foreign Investments filed with the
Ministry of Economy (Secretaría de Economía)
at its Federal Office in Chihuahua, on June 23, 2007, and that a true copy
of the original document was shown to me and added by me to the appendix of the
Notarial Record Book marked with letter B and the number of this legal
instrument.

 

V.                                     That Mr. Víctor García Jiménez, Esq., hereby declares that the
company he represents will carry out the registration of the ratified agreement
with the Mining Public Registry (Registro Público de
Minería).

 

VI.                                 That everything listed and inserted truly agrees with the documents I have
been shown and have seen.

 

VII.                             That I informed the appearing parties of the right they have to personally
read this instrument and to have its contents explained by me.

 

VIII:                         That this instrument was read to the appearing parties and after I informed
them of the value, consequences and legal scope of its contents they expressed
their full comprehension and agreement and signed it on this date, I
HEREBY DEFINITELY AUTHORIZE IMMEDIATELY AFTERWARDS ON THE INDICATED PLACE AND
DATE. I HEREBY ATTEST.

 

SIGNATURES. SIGNATURE OF THE NOTARY.
AUTHORIZATION SEAL

DOCUMENTS IN THE APPENDIX.

 

A,                                    DOCUMENT RATIFIED.

 

B.                                      RENEWAL OF REGISTRATION IN THE NATIONAL REGISTRY OF FOREIGN INVESTMENTS.

 

THIS IS THE SECOND OFFICIAL TRANSCRIPT, THIRD IN ORDER,
TAKEN FROM THE ORIGINAL DOCUMENT THAT I ISSUE FOR “COMPAÑÍA MINERA DOLORES”
SOCIEDAD ANÓNIMA DE CAPITAL VARIABLE, AS THE INTERESTED PARTY. IT IS PRESENTED
IN SIX PAGES THAT HAVE BEEN DULY COMPARED AND PROTECTED BY KINEGRAMS WITH
NUMBERING THAT MAY NOT BE PROGRESSIVE, ADHERED TO THE OBVERSE OF EACH PAGE
AND ALSO NEXT TO MY SIGNATURE AND SEAL. IT IS AN INTEGRAL PART OF THIS
OFFICIAL TRANSCRIPT, SAME DOCUMENT THAT IS RATIFIED AND THE RENEWAL OF
REGISTRATION IN THE NATIONAL REGISTRY OF FOREIGN INVESTMENTS, IN EIGHT
PAGES ATTACHED AT THE END. I HEREBY ATTEST. MEXICO CITY, FEDERAL DISTRICT, ON
THE 18TH OF
OCTOBER OF THE YEAR 2006.

 

*        *        *

 

4

 

MINING RIGHTS PURCHASE AGREEMENT ENTERED INTO BY AND BETWEEN MR.
LIÉBANO SÁENZ ORTIZ (HEREINAFTER, “SELLER”), ON ITS OWN RIGHT AND COMPAÑÍA
MINERA DOLORES, S.A. DE C.V. (HEREINAFTER “PURCHASER”), REPRESENTED HEREIN BY
ITS ATTORNEY IN FACT MR. VICTOR GARCÍA JIMÉNEZ, PURSUANT TO THE FOLLOWING
RECITALS AND CLAUSES

 

RECITALS

 

I.                                         SELLER declares:

 

a)                                     To be a Mexican citizen, of age, married by the separation of property
system, legally able to be bound and to be holder of mining concessions;

 

b)                                    That he is the legitimate owner of the rights deriving from the mining concession
existing on the lot (“THE LOT”) UNIFICACIÓN REAL CANANEA, Title 227028, with a
surface area of 1,920.0000 hectares, located in the Municipality of Madera,
State of Chihuahua that replaced the following previous mining concessions:

 

	
  NAME OF THE LOT

  	
   

  	
  TITLE No.

  
	
  ALMA DE MARÍA

  	
   

  	
  191728

  
	
  REAL CANANEA UNO

  	
   

  	
  184982

  
	
  REAL CANANEA

  	
   

  	
  184981

  
	
  SAN JUDAS TADEO

  	
   

  	
  184983

  
	
  AMPL. REAL CANANEA UNO

  	
   

  	
  184985

  
	
  AMPL. REAL CANANEA DOS

  	
   

  	
  184986

  
	
  AMPL. REAL CANANEA

  	
   

  	
  184984

  

 

Copy of the aforementioned
Concession Title is attached hereto as Attachment “A”.

 

c)                                     That with respect to the mining concession existing on THE LOT, it is up to
date in the compliance with its obligations according to the Mining Law, its
Regulations and other applicable legal provisions. Furthermore, that the rights
deriving from such concession are free from any encumbrance, charge or
limitation of title;

 

d)                                    That on March 25, 1994, he entered into an Exploration, Exploitation
and Unilateral Promise to Sell with Minera Minefinders, S.A. de C. V.
(hereinafter “MINERA”), granting to MINERA the rights to explore and exploit
the lots mentioned in Recital I b) above, as well as a unilateral promise to
sell the rights deriving from the mining concessions existing at that time
thereon, should MINERA be willing to purchase them;

 

e)                                     That in an Assignment of Rights Agreement entered into on July 25,
1997, with his consent, MINERA assigned to Compañía Minera Dolores, S.A. de
C.V. (hereinafter “PURCHASER”) the rights deriving from the Exploration, 

 

5

 

Exploitation and Unilateral Promise to Sell mentioned
in the preceding paragraph d), and that both, MINERA and DOLORES have timely
complied with all the contractual obligations in such Agreements, and

 

f)                                       That on January 27, 2005, with his consent and signature, MINERA filed
the applications to verify the metes, bounds and perimeters of the
aforementioned lots, as well as to correct the pertaining concession titles
and, also requested the unification of all the surface area covered by such
titles. In view thereof, on April 11, 2006, the mining concession of
UNIFICACIÓN REAL DE CANANEA, Title No. 227028 was issued, and

 

g)                                    In view that PURCHASER has formally notified its wish to exercise its
option rights to purchase the rights deriving from the existing mining
concession on THE LOT, to comply with his promise, in this Agreement he is
willing to sell the aforementioned rights to PURCHASER, in the terms and
conditions set forth herein below.

 

II.                                     PURCHASER declares:

 

a)              To be a mining corporation legally established and existing pursuant to the
laws of the Republic of Mexico, legally able to enter into this agreement and
to be the holder of mining concessions;

 

b)             That its attorney in fact, Mr. Víctor García Jiménez is duly authorized
to represent the corporation and to enter into this agreement, and

 

c)              That in accordance with provisions in the Exploration, Exploitation and
Unilateral Promise to Sell Agreement mentioned in sub-paragraph e) of Recital I
above, in its capacity of assignee of the rights deriving from such Agreement
and exercising its option right to purchase, in this agreement is willing to
purchase the rights deriving from the mining concession existing on THE LOT, in
the terms and conditions agreed upon and stated herein below.

 

Pursuant to the preceding Recitals, the parties bind
themselves pursuant to the following:

 

CLAUSES

 

ONE.                                                                   Purchase of the Mining Concession.  SELLER hereby sells to PURCHASER
the rights deriving from the mining concession existing on THE LOT, at a
purchase price of TWENTY FIVE THOUSAND US DOLLARS (US$25,000.00) plus VAT,
payable in cash at the execution of this Agreement.

 

TWO.                                                              Subrogation of rights and obligations. By entering into this agreement for the purchase of rights, PURCHASER
substitutes SELLER with respect to all the rights and obligations held thereby
as holder of the rights deriving from the mining concession existing on THE LOT
pursuant to that set forth by the Mining Law, its Regulations, the Federal
Rights Law and other applicable legal provisions.

 

6

 

THREE.                                                     Acceptance of price and warranty of title. The parties hereby agree that the price paid is the price of THE LOT
mentioned herein, as described, without taking into account its parts, size or
mineral content, and therefore, rescission shall not proceed, notwithstanding a
deficit or surplus may result in its parts, size or content at the time of
surrender. Furthermore, the parties hereby accept all the terms and conditions
in this Agreement and in view of its commercial nature they shall not presume
injury or bad faith.

 

SELLER undertakes to provide warranty of title to
PURCHASER.

 

FOUR.                                                           Discovery Fees.
PURCHASER undertakes to pay SELLER as Discovery Fees a two percent (2%) royalty
fee from the net amount of smelting settlements or first-hand purchase invoices
paid to PURCHASER for the sale of mineral extracted from THE LOT, payable once
the commercial production has started at THE LOT, to be paid pursuant to
provisions in this clause.

 

In the event that in the future PURCHASER may transfer
THE LOT or the exploiting rights to third parties, PURCHASER undertakes to
obtain a commitment from such third party to pay to SELLER the royalty
mentioned in this Clause, and to ensure that all subsequent buyers thereof
shall pay such royalty to SELLER. Failure to do so shall cause the party
transferring THE LOT or the exploitation rights without obtaining the
commitment of buyer to pay such royalty, to continue paying such royalty to
SELLER.

 

For the purpose of the preceding, it is hereby
understood:

 

1.               That PURCHASER or whoever is producing (“PRODUCER”) in THE LOT, shall be in
commercial production when the site or plant is producing at seventy five per
cent (75%) of installed capacity, according to the feasibility survey, for a
three month period.

 

2.               “The two percent (2%) royalty of the net amount of smelting settlements
or first-hand purchase invoices paid to PURCHASER for the sale of mineral
extracted from THE LOT” shall mean: the net
amount directly received by PURCHASER, or if applicable, PRODUCER, for the sale
of mineral, ore concentrates or any other type of product obtained from THE
LOT, and sent to the smelting or refining site, or to any other buyer of the
mineral after deducting smelting or refining expenses, pertaining rates and all
and every expenses incurred by the buyer of the mineral and ore concentrates,
deducting all the expenses incurred for transporting them to the smelting or
refining sites, and also deducting arbitration expenses incurred by PURCHASER
or PRODUCER. The milling, concentration and transportation costs from the mine
to the mill, and the mineral extraction costs shall not be deducted when
estimating the final amount of the royalty.

 

3.               The payment of the royalty to SELLER by PURCHASER or PRODUCER shall be made
within forty five (45) days following the date of termination of every quarter,
attaching to such payment the financial statements of the transactions carried
out by PURCHASER or PRODUCER in THE LOT. Within ninety (90) days following the
closing of the fiscal year of PURCHASER or PRODUCER, in which year royalties
had been paid to SELLER, all the accounting records 

 

7

 

related [illegible] to royalty payment for that year
shall be audited by a competent auditor. In the event of a difference, such
amount shall be immediately paid to SELLER. A copy of the Audit shall be
delivered to SELLER within thirty (30) days following the end of the
aforementioned ninety (90) day term.

 

4.               Every annual audit shall be final and shall not be subject to adjustments
or changes unless SELLER gives PURCHASER or PRODUCER detailed exceptions within
six (6) months following the date SELLER receives such report. SELLER or
its representatives duly authorized in writing shall have the right, on their
own account, to review the books and records of PURCHASER or PRODUCER. The
audit shall be carried out by a renowned independent Auditor or Public
Accountant. PURCHASER or PRODUCER shall have the right to condition the access
to its books and records asking the auditor to undertake in writing to keep all
the information strictly confidential and to use it solely for the purposes of
the audit and to solve any dispute related to the report.

 

5.               A copy of the Audit report requested by SELLER shall be delivered to
PURCHASER or PRODUCER at the completion of the audit, and any difference
between the amount paid by PURCHASER or PRODUCER and the amount that should
have been paid according to the report of the Audit commissioned by SELLER,
shall be immediately paid thereto. In the event such difference is for the
benefit of SELLER and exceeds (five percent) 5% of the amount originally paid
by PURCHASER or PRODUCER, PURCHASER or PRODUCER shall pay the total cost of the
Audit commissioned by SELLER.

 

6.               Under the terms of this agreement, no accounting error or agreement
interpretation error shall be the basis to claim a breach of contractual or
similar obligations, or reason to claim payment of damages or liquidated
damages, or for the termination or rescission of the agreement or of the
rights, or restitution of property acquired thereby and owned by PURCHASER or
PRODUCER.

 

FIVE.                                                                  Fees, rights, taxes and expenses. All fees, rights, taxes and expenses resulting from the execution of this
agreement shall be paid by PURCHASER, but not the taxes resulting on the income
obtained by SELLER which shall be paid by SELLER.

 

SIX.                                                                        Surrender of THE LOT. SELLER shall transfer to PURCHASER the ownership and title of THE LOT at
the time of execution of this agreement. Consequently, from that moment,
PURCHASER may use THE LOT at will, performing any exploration, exploitation and
development works it may deem convenient.

 

SEVEN.                                                     Full agreement of the parties. This Agreement encompasses the full agreement of the parties with respect
to its purpose. Therefore, this Agreement supersedes and cancels any other
agreement or letter of intent executed before this Agreement with respect to
the same purpose. Furthermore, the parties acknowledge that in view that this
agreement is of a commercial nature, there is no injury or fraud from any of
the parties.

 

8

 

This agreement shall bind in all of its terms and
conditions to the heirs, assignees and successors of the parties.

 

The parties agree to ratify this agreement before
Notary Public or Public Commercial Attestor and to record it at the Public
Registry of Mining pursuant to provisions in the Mining Law and its
Regulations.

 

EIGHT.                                                        Applicable Law and Courts. For everything not expressly provided for in this Agreement, the parties
submit to the legal provisions applicable in Mexico City, Federal District,
specifically to the Mining Law, its Regulations, the Federal Law of Duties, the
Code of Commerce and the Federal Civil Code, agreeing to submit in the event of
any dispute to the jurisdiction of the competent courts in Mexico City, Federal
District, waiving the jurisdiction of any other court they may correspond in
view of their current or future domicile.

 

This Agreement is signed in four counterparts in
Mexico City, Federal District, on September     ,
2006.

 

	
  SELLER

  	
   

  	
  PURCHASER

  
	
   

  	
   

  	
  COMPAÑÍA MINERA DOLORES,
  S.A. DE C.V.

  
	
   

  	
   

  	
   

  
	
  [Illegible signature]

  	
   

  	
  [Illegible signature]

  
	
  Liébano Saenz Ortiz

  	
   

  	
  Víctor García Jiménez

  
				

 

9

 

I, ADRIAN ROGELIO ITURBIDE GALINDO, NOTARY PUBLIC
NUMBER ONE HUNDRED AND THIRTY NINE IN AND FOR THE FEDERAL DISTRICT HEREBY
CERTIFY: That in Instrument Number 53,360, dated October 13, 2006, drafted
in the Notarial Record Book of Notary Public Office Number 136, in which I act
as Associate, and the Holder thereof is José Manuel Gómez del Campo López on
this date Mr. VÍCTOR GARCÍA JIMÉNEZ, attorney in fact of COMPAÑÍA MINERA
DOLORES, SOCIEDAD ANÓNIMA DE CAPITAL VARIABLE, whose capacity was duly
substantiated in such instrument, and Mr. LIEBANO SAENZ ORTIZ, on its own
right, both of whom I know and have legal capacity, acknowledged as theirs the
signatures below, since they are their hand and they ratify such document in
all of its parts, signing again for the record. I HEREBY CERTIFY. Mexico City,
Federal District, October 13, 2006.

 

 

[Illegible signature]

LIÉBANO SAENZ ORTIZ

 

 

[Illegible signature]

COMPAÑÍA MINERA DOLORES,
SOCIEDAD

ANONIMA DE CAPITAL
VARIABLE, REPRESENTED

HEREIN BY MR. VICTOR
GARCIA JIMENEZ

 

 

[Illegible signature]

ADRIAN ROGELIO ITURBIDE GALINDO, Esq.

NOTARY PUBLIC 139 IN AND FOR THE FEDERAL DISTRICT

 

*       *       *

 

10

 

[MEXICAN EMBLEM]

MINISTRY OF THE ECONOMY

 

GENERAL DIRECTORSHIP OF MINES

PUBLIC REGISTRY OF MINING

 

642/2006

 

Recorded under number 196, page 12 obverse of
volume 20 of the Book of MINING DEEDS, AGREEMENTS AND CONTRACTS of the Public
Registry of Mining. It is hereby advised that in addition to the consideration
set forth for the purchase, purchaser undertakes to pay a 2% royalty on the net
amount of smelting settlements or purchase invoices, as a discovery fee,
according to provisions in clause four herein. Furthermore, it is hereby
advised that in this agreement Compañía Minera Dolores, S.A. de C.V., exercises
the purchase option right it had deriving from the exploration and exploitation
agreement with purchase option dated March 25, 1994, recorded under number
148 of volume 1 in this same book.

 

Mexico City, Federal District, November 30, 2006.

 

 

RECORDER

 

[Illegible signature]

MA.  OLGA GALLARDO MONTOYA

 

[SEAL IMPRINT WITH THE MEXICAN EMBLEM, READING:]

 

MINISTRY OF THE ECONOMY, GENERAL DIRECTORSHIP OF MINES

MEXICO CITY, FEDERAL DISTRICT

 

*       *       *

 

11

 

[ON PAGE 26, AFTER THE ASSIGNMENT AGREEMENT]

 

I, JORGE ANTONIO FRANCOZ GARATE, NOTARY PUBLIC NUMBER
FORTY IN AND FOR THE STATE OF MEXICO

 

I HEREBY CERTIFY AND ATTEST

 

THAT MR. LIEBANO SAENZ ORTIZ APPEARED BEFORE ME, ON HIS
OWN RIGHT AND SUBSTANTIATED HIS IDENTITY, AND I CONSIDER HIM WITH LEGAL
CAPACITY FOR THIS ACT, AND BEFORE ME HE SIGNED THIS ASSIGNMENT OF RIGHTS
AGREEMENT CONSISTING OF THREE PAGES WRITTEN ONLY ON THE OBVERSE, AND ITS
PERTAINING TRANSLATION INTO ENGLISH, AND THE APOSTILLE ISSUED BY THE STATE OF
NEVADA, UNITED STATES OF AMERICA, WITH RESPECT TO THE SIGNATURE OF NOTARY
PUBLIC MICHEL J. MORRISON, WHO BEFORE THIS ACT RATIFIED IN THE AFOREMENTIONED
AGREEMENT THE SIGNATURE OF MARK KUCHER.

 

THIS IS SPREAD UPON THE RECORD IN INSTRUMENT NUMBER
39,014, VOLUMEN 1077, DATED MARCH 28, 2007, DRAFTED IN THE NOTARIAL RECORD
BOOK UNDER MY CUSTODY. I HEREBY CERTIFY.

 

 

[Illegible signature]

 

 

[SEAL IMPRINT WITH THE MEXICAN EMBLEM READING:]

 

JORGE ANTONIO FRANCOZ GARATE, NOTARY OFFICE NUMBER 40
IN AND FOR THE STATE OF MEXICO, NAUCALPAN.

 

*       *       *

 

12

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