Document:

EXHIBIT
      10.40

     

    March
      13,
      2006

     

    Name

    Street

    City
      State Zip

    

    Re:
      Warrant exercise offer on certain $0.25 Wits Basin Warrants

    

    Dear
      Name: 

    

    As
      a
      current warrant holder in Wits Basin Precious Minerals Inc., we are pleased
      to
      extend an offer related to certain warrants held by you (with an exercise price
      of $0.25 per share) if exercised on or before April 14, 2006. The enclosed
      Term
      Sheet for Warrant Exercise Proposal, Exhibit
      A,
      sets
      forth in greater detail the terms of this proposal.

    

    The
      purpose of this proposal is to induce you to exercise your warrant(s) early,
      providing needed financing to Wits Basin in order to carry forward on its
      projects in Colorado and South Africa. 

    

    Additionally,
      you will find enclosed a Qualification Questionnaire (one for individual
      ownership and one for other types of ownership) and a Notice of Exercise of
      Warrant form. If you plan to participate, which we hope you will, please return
      the original warrant(s) being exercised, the completed Qualification
      Questionnaire for your specific ownership type, the Notice of Exercise of
      Warrant form and your payment (if by check) to:

    

    Wits
      Basin Precious Minerals Inc.

    900
      IDS
      Center

    80
      South
      8th Street

    Minneapolis,
      MN 55402-8773

    

    Should
      you need further information, please contact me at 416.587.7323 or Mark Dacko,
      our CFO, at 612.220.3237. Thank you for your consideration.

    

    Sincerely,

     

     

    H.
      Vance
      White

    Chief
      Executive Officer

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    TERM
      SHEET

    

    No
      securities commission or other similar regulatory authority has passed on the
      merits of the securities offered herein nor has it reviewed this Term Sheet
      and
      any representation to the contrary is an offence. This Term Sheet is not, and
      under no circumstances is to be interpreted as, a prospectus, public information
      or advertisement of the securities described herein.

    

    March
      13, 2006

     

    WITS
      BASIN PRECIOUS MINERALS INC.

    

    WARRANT
      EXERCISE PROPOSAL

    

    
      	
              Securities

            	 	
              Private
                Placement warrants (“Warrants”)
                of Wits
                Basin Precious Minerals Inc.,
                to
                purchase shares of the Company’s common stock (“Shares”).

            
	 	 	 
	
              Warrants
                Offered

            	 	
              The
                Company currently has 42,826,998 warrants issued and outstanding.
                The
                Company is offering the holders of 12,220,000 Warrants, with an exercise
                price of $0.25 per share, with an offer to receive additional
                warrants.

            
	 	 	 
	
              Proposal
                For Holders

            	 	
              For
                a limited time, any holder may exercise all or any portion of the
                Warrants
                held (at an exercise price of $0.25 per share) and for each two Shares
                purchased upon exercise, the holder will receive a new three year
                warrant
                to purchase one share of the Company’s common stock (“New
                Warrant”)
                with an exercise price of $0.50 per share. The minimum amount required
                for
                exercise is 4,000 Shares per holder ($1,000) thereby receiving a
                New
                Warrant exercisable into 2,000 shares of common stock. 

            
	 	 	 
	
              Exercise
                Time Period

            	 	
              In
                order to participate in this proposal, you must exercise on or before
                April 14, 2006, 5 PM CST. 

            
	 	 	 
	
              Registration
                Rights

            	 	
              The
                re-sale of the Shares received from the exercise of the Warrants
                are
                currently saleable pursuant to a current Prospectus. Any shares acquired
                upon the exercise of the New Warrant will only become available for
                re-sale upon the Company’s completion of an effective registration
                statement on a date to be determined after the completion of this
                proposal
                by the Company in its discretion. Furthermore, it is a condition
                of the
                Company that a minimum of 25% of the Warrants are exercised and the
                Company will, under a reasonable efforts commitment, apply for
                registration of the New Warrant to be listed and traded on the OTCBB.
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Qualifications
                of Holders

            	 	
              The
                holders must qualify as “Accredited
                Investors”
                in order to participate in this proposal. The Company reserves the
                right
                to reject any holder at its sole discretion.

            
	 	 	 
	
              Use
                of Proceeds

            	 	
              Proceeds
                from the exercise of the Warrants offered will be used to satisfy
                general
                working capital purposes including general and administrative
                expenses.

            
	 	 	 
	
              Payment
                options

            	 	
              (1)
                Provide a check with your executed documents, or 

              (2)
                Initiate an electronic wire transfer
                to:

            

    

    

    
      	
              Bank:

            	
              Wells
                Fargo Bank, N.A.

              MAC:
                N9305-011

              6th
                &
                Marquette Avenue

              Minneapolis,
                MN 55479

              (612)
                667-8422

            
	 	 
	
              Routing
                No.:

            	
              121000248

            
	 	 
	
              Account
                Name:

            	
              Wits
                Basin Precious Minerals Inc.

            
	 	 
	
              Account
                No.:

            	
              XXXXXXXXXXXX

            
	 	 
	
              SWIFT
                Code:

            	
              WFBIUS6SEXHIBIT
      10.41

    

    

    March
      13,
      2006

    

    

    Caribbean
      Consultants Holdings Associated, S.A.

    Chaucery
      Court, 1st
      Floor

    Leeward
      Highway

    Providenciales,
      Turks & Caicos Islands

    

    Re:
      Warrant exercise offer on certain $0.225 Wits Basin Warrants

    

    Dear
      Mr.
      Scholar: 

    

    As
      a
      current warrant holder in Wits Basin Precious Minerals Inc., we are pleased
      to
      extend an offer related to certain warrants held by you (with an exercise price
      of $0.225 per share) if exercised on or before April 14, 2006. The enclosed
      Term
      Sheet for Warrant Exercise Proposal, Exhibit
      A,
      sets
      forth in greater detail the terms of this proposal.

    

    The
      purpose of this proposal is to induce you to exercise your warrant(s) early,
      providing needed financing to Wits Basin in order to carry forward on its
      projects in Colorado and South Africa. 

    

    Additionally,
      you will find enclosed a Qualification Questionnaire (one for individual
      ownership and one for other types of ownership) and a Notice of Exercise of
      Warrant form. If you plan to participate, which we hope you will, please return
      the original warrant(s) being exercised, the completed Qualification
      Questionnaire for your specific ownership type, the Notice of Exercise of
      Warrant form and your payment (if by check) to:

    

    Wits
      Basin Precious Minerals Inc.

    900
      IDS
      Center

    80
      South
      8th Street

    Minneapolis,
      MN 55402-8773

    

    Should
      you need further information, please contact me at 416.587.7323 or Mark Dacko,
      our CFO, at 612.220.3237. Thank you for your consideration.

    

    Sincerely,

     

     

    H.
      Vance
      White

    Chief
      Executive Officer

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    TERM
      SHEET

    

    No
      securities commission or other similar regulatory authority has passed on the
      merits of the securities offered herein nor has it reviewed this Term Sheet
      and
      any representation to the contrary is an offence. This Term Sheet is not, and
      under no circumstances is to be interpreted as, a prospectus, public information
      or advertisement of the securities described herein.

    

    March
      13, 2006

    

    

    WITS
      BASIN PRECIOUS MINERALS INC.

    

    WARRANT
      EXERCISE PROPOSAL

     

    
      	
              Securities

            	 	
              Private
                Placement warrants (“Warrants”)
                of Wits
                Basin Precious Minerals Inc.,
                to
                purchase shares of the Company’s common stock (“Shares”).

            
	 	 	 
	
              Warrants
                Offered

            	 	
              The
                Company currently has 42,826,998 warrants issued and outstanding.
                The
                Company is offering the holder of 2,000,000 Warrants, with an exercise
                price of $0.225 per share, with an offer to receive additional
                warrants.

            
	 	 	 
	
              Proposal
                For Holders

            	 	
              For
                a limited time, the holder may exercise all or any portion of the
                Warrants
                held (at an exercise price of $0.225 per share) and for each two
                Shares
                purchased upon exercise, the holder will receive a new three year
                warrant
                to purchase one share of the Company’s common stock (“New
                Warrant”)
                with an exercise price of $0.50 per share. The minimum amount required
                for
                exercise is 250,000 Shares ($56,250) thereby receiving a New Warrant
                exercisable into 125,000 shares of common stock. 

            
	 	 	 
	
              Exercise
                Time Period

            	 	
              In
                order to participate in this proposal, you must exercise on or before
                April 14, 2006, 5 PM CST. 

            
	 	 	 
	
              Registration
                Rights

            	 	
              The
                re-sale of the Shares received from the exercise of the Warrants
                are
                currently saleable pursuant to a current Prospectus. Any shares acquired
                upon the exercise of the New Warrant will only become available for
                re-sale upon the Company’s completion of an effective registration
                statement on a date to be determined after the completion of this
                proposal
                by the Company in its discretion. Furthermore, it is a condition
                of the
                Company that a minimum of 1,000,000 of the Warrants are exercised
                and the
                Company will, under a reasonable efforts commitment, apply for
                registration of the New Warrant to be listed and traded on the OTCBB.
                

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Qualifications
                of Holders

            	 	
              The
                holder must qualify as “Accredited
                Investors”
                in order to participate in this proposal. The Company reserves the
                right
                to reject any holder at its sole discretion.

            
	 	 	 
	
              Use
                of Proceeds

            	 	
              Proceeds
                from the exercise of the Warrants offered will be used to satisfy
                general
                working capital purposes including general and administrative
                expenses.

            
	 	 	 
	
              Payment
                options

            	 	
              (1)
                Provide a check with your executed documents, or 

              (2)
                Initiate an electronic wire transfer
                to:

            

    

    

    
      	
              Bank:

            	
              Wells
                Fargo Bank, N.A.

              MAC:
                N9305-011

              6th
                &
                Marquette Avenue

              Minneapolis,
                MN 55479

              (612)
                667-8422

            
	 	 
	
              Routing
                No.:

            	
              121000248

            
	 	 
	
              Account
                Name:

            	
              Wits
                Basin Precious Minerals Inc.

            
	 	 
	
              Account
                No.:

            	
              XXXXXXXXXXXXXXX

            
	 	 
	
              SWIFT
                Code:

            	
              WFBIUS6S

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