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Springbok Development-Claridge-Hanlon Resource Engineering/and or Nominee

April 30, 2011

Confidential

Mr. Francis R. Biscan Jr.

Tara Minerals Corp.

2162 Acorn Court

Wheaton, IL  60187, US

Dear Mr. Biscan, 

Re: Option to Acquire up to a 49% Interest in the Don Roman Project, Mexico

Further to our recent discussions, this letter of intent (the “LOI”) sets out the principal terms and conditions of a potential agreement pursuant to which Tara Minerals Corp. (“Tara Minerals”), through its wholly owned Mexican subsidiary American Metal Mining, S.A. de C.V. (“Tara Mexico”, and together with Tara Minerals, “Tara”) will grant to Springbok Development-Claridge-Hanlon Resource Engineering/and or Nominee or any of its subsidiaries (“SD-CHRE”) the sole and exclusive right and option to acquire up to an undivided forty-nine percent (49%) interest in and to all of the mining concessions known as the Don Roman Project located in the State of Sinaloa, Mexico as further described in Exhibit “A” to this LOI (the “Concessions”), and all fixtures, tools, vehicles, machinery, equipment and supplies and all other property or rights of any, whether real or personal, of Tara used directly in respect of the exploration, development and mining of the Don Roman Project (the “Project”). Claridge-Hanlon Resources Engineering is a division of Hanlon Engineering & Architecture, Inc., an Arizona Corporation. 

For the purposes of this LOI, Tara and SD-CHRE are each a “party” and collectively, the “parties”.  The date of acceptance of this LOI is the “Effective Date”.

This LOI is non-binding except as is otherwise provided herein.  In addition, the proposal is not exhaustive of all the matters which Tara and SD-CHRE may wish to cover in any subsequent agreement they may enter into. The proposal nevertheless represents the commercial basis on which Tara and SD-CHRE are prepared to proceed with a view to negotiating definitive legal documentation (such legal documentation individually and collectively, the “Definitive Agreement”) in accordance with Section 4.

1.

Conditions Precedent

1

The obligations of the parties under the Definitive Agreement will be subject to each of the following conditions being satisfied on or before that date on which the Definitive Agreement is executed (“Closing Date”), or such other date as hereinafter provided, unless waived by both parties:

(a)

The parties obtaining any required approval, consent or acceptance from any regulatory body having jurisdiction in connection with the Definitive Agreement or its subject matter; 

(b)

The parties obtaining any required approval, consent or acceptance from their respective boards of directors in connection with the Definitive Agreement or its subject matter; 

(c)

SD-CHRE delivering, within 45-60 days of the Effective Date, a written preliminary assessment based on the data and information provided solely provided by TARA. The preliminary assessment will include:

(i)

Determination if data provided is sufficient to complete preliminary assessment;

(ii)

Review and assessment ore body and mineralization based on data provided;

(iii)

Review and assessment the existing Process Plant capabilities and; 

(iv)

Order of magnitude operating budget for mine, process plant and infrastructure based on information available;

(v)

Suggested order of magnitude development budget;

(vi)

Preliminary assessment for ores or concentrates of commercial economic value extracted or derived from the Concessions for sale (the “Project Material”) with a minimum Phase 1 production rate of 120 tonnes per day (“Phase 1 Production Rate”);

(vii)

Outline steps and schedule to be developed in Phase 2, which include a detailed operate plan towards the re-start of mining and milling operations resulting in materials containing a mineral or minerals, ores or concentrates of commercial economic value extracted or derived from the Concessions for sale (the “Project Material”) with a minimum Phase 2 production rate of 360 tonnes per day (“Phase 2 Production Rate”);

(viii)

Enviromental and Operation Permits, laws, regulations are the sole responsibility of TARA; these will be provided by TARA and verified in Phase II.

(d)

Tara approving the phase I preliminary assessment and path forward as submitted, or with such modifications as the parties may agree to.

2.

Option to acquire 49% interest in the Project

2

 The Definitive Agreement will provide that:

(a)

SD-CHRE shall have the sole and exclusive option, exercisable in its sole discretion, to earn an undivided forty-nine percent (49%) interest in and to the Project (the “Option”) by: 

(i)

Making a $250,000 cash payment to Tara Minerals within 45 days of the signing of this LOI (to be escrowed into a neutral account until execution of the definitive agreement). SD-CHRE will be reimbursed from this amount directly for the work performed to date, not to exceed $100,000. The payment will be made within 5-days of the deposit into the escrow account directly to CHRE.

(ii)

incurring a minimum of US$2,000,000 in start-up expenditures on the Project (the “Start-Up Expenditures”);

(iii)

re-starting mining and milling operations based on the Start-Up Program and Budget and achieving the Phase 1 Production Rate within 120 days from the Effective Date (“Start-Up Period”); and

(iv)

incurring a minimum of US$2,000,000 in additional capital expenditures on the Project (the “Capital Expenditures 1”) to achieve the Phase 2 Production Rate of 360 tonnes per day on or prior to the date that is six (6) months from the Effective Date;

(v)

incurring a minimum of US$4,000,000 in additional capital expenditures on the Project (the “Capital Expenditures 2”) to achieve and maintain a minimum Production Rate, as the parties may agree upon within the Definitive Agreement, not to be less than 480 tonnes per day, on or prior to the date that is twelve (12) months from the Effective Date;

(b)

the Expenditures shall not be committed. SD-CHRE shall be entitled to terminate the Option and Definitive Agreement at any time prior to funding and incurring the Expenditures with thirty (30) days written notice to Tara. Expenditures may be made within a shorter time frame at the sole option of SD-CHRE

(c)

any Start-Up Expenditures in excess of US$2,000,000 shall be credited and set-off against future Capital Expenditures.

(d)

upon satisfaction of the Start-Up Expenditures, SD-CHRE shall have the right to 50% of the net revenue (the “SD-CHRE Revenue”) derived from the Project. Tara shall have the right to the remaining 50% of the net revenue (the “Tara Revenue”) derived from the Project. Net Revenue is defined as Project Material revenue minus expenses related to feeding and operating the mill.  For further clarity, the expenses above, for the purpose of the calculation of the net revenue, will not include the SD-CHRE expenditures outlined in Section 2(a). If the Option is terminated, expires or the requirements are otherwise not met by the relevant times, SD-CHRE will no longer be entitled to the SD-CHRE Revenue and will forfeit all rights in respect of the SD-CHRE Revenue.

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(e)

Upon satisfaction of all of the obligations set forth in Section 2(a), SD-CHRE will be deemed to have exercised the Option and acquired an undivided forty-nine percent (49%) interest in the Project and SD-CHRE shall continue to have the right to 50% of the net revenue derived from the Project. Tara then shall have the right to the remaining 50% of the net revenue derived from the Project and retain an undivided fifty percent (51%) interest in the Project

3.

Documents and Reports

Promptly following the execution of this LOI, Tara will make available to SD-CHRE for review all records and data in its possession or control respecting the Project and including, without limitation, all technical and environmental reports prepared by or for Tara in respect of the Project, any opinions and other documentation regarding title to the Concessions, any present or historical interests of third parties in the Concessions and any and all information requested by SD-CHRE or its counsel in connection with the Project, and SD-CHRE shall be entitled to make copies of all such records, data and reports, provided that it shall keep all such information confidential. Tara will co-operate fully in making its personnel available to SD-CHRE at reasonable times for the purposes of gathering and assessing all such documents and reports.  If this LOI is terminated in accordance with Section 16 prior to the execution of the Definitive Agreement, all information provided to SD-CHRE, or generated by SD-CHRE towards the progress of the LOI, will be returned/forwarded to Tara and all copies of all such records, data and reports made by SD-CHRE must be destroyed. 

4.

Definitive Agreement

(a)

Tara and SD-CHRE shall, using reasonable commercial efforts, negotiate in good faith, settle and execute the Definitive Agreement.  The parties will endeavor to execute and deliver the Definitive Agreement within ninety (90) days from the Effective Date. The Definitive Agreement shall include the terms set out in this LOI and such other mutually acceptable terms and conditions as the parties may agree, including such terms, conditions, representations, warranties and covenants as are customary in transactions involving the grant of an option to acquire an interest in mining properties in Mexico, and including the representations and warranties of Tara set out in Section 11 of this LOI.

(b)

SD-CHRE and Tara hereby acknowledge and agree that their intent is that all transactions contemplated by this LOI be structured, undertaken and completed in a tax efficient manner for all parties.  As such, the Definitive Agreement will be prepared accordingly.

(c)

The Definitive Agreement will include provisions that upon the occurrence of an event of force majeure, the Start-Up Period and the Capital Expenditure Period will be extended by the duration of the event of force majeure, such events to include the inability of either Tara or SD-CHRE to gain access to all or any part of the mining lots that comprise the Concessions, due to interference from local landholders or community groups or other circumstances beyond SD-CHRE’s or Tara’s reasonable control.

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(d)

Upon SD-CHRE exercising the Option, the Definitive Agreement will provide that the parties will be deemed to have entered into a joint venture (which may be either an unincorporated contractual joint venture, or an incorporated joint venture, as the parties may in due course agree is most effective from a legal, financial, tax and operational perspectives) constituted on the basis of a term sheet that will be scheduled to the Definitive Agreement.  The joint venture term sheet will, amongst other things, (i) outline a framework by which either party can acquire the entire interest held by the other party, and (ii) include the matters that will require a supermajority or unanimous decision by the parties, including amongst other things, any decision to suspend or cease the mining operations or place any mining operation on care and maintenance. 

(e)

The Definitive Agreement will include dispute resolution procedures.

5.

Funding of Project Expenditures 

The parties hereby agree that funding of Project Expenditures, after the satisfaction of the Start-Up Expenditures by SD-CHRE, and upon approval of a program and budget for operations on the Project by the Management Committee as provided in Section 7 of this LOI, shall be made as follows:

(a)

First by SD-CHRE, as Capital Expenditures 1 and Capital Expenditures 2, until satisfied;

(b)

Second by the parties at the interest earned; and

(c)

If a party elects not to contribute to an approved program and budget, such non-contributing party’s interest in the Project shall be diluted appropriately. 

6.

Operations

(a)

The Definitive Agreement will provide that SD-CHRE shall be the Operator of the Project and the Operator

(i)

will have the right, at its sole risk and expense, for its employees, agents and independent contractors to enter in, on or under the mining lots that comprise the Concessions, and may conduct any work program activities or other work on the mining lots that comprise the Concessions;

(ii)

must conduct all activities in compliance with the applicable laws and regulations governing the Project and must do all things necessary to maintain the Concessions in good standing during such period;

(iii)

must maintain the Project and all permits, licenses and other approvals pertaining to the Project in good standing and free of all liens;

(iv)

will incur Expenditures in accordance with programs and budgets approved by the Management Committee;

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(v)

must do such acts, and pay as Expenditures such fees and rents as may be required to keep the Project in good standing; all work conducted, carried out or performed by or on behalf of the Operator on the Project during must be done in a good and workmanlike manner to the best of its ability in accordance with best international mining practices and in compliance with all applicable laws of all governmental authorities, including without limitation, all environmental laws;

(vi)

must keep full and complete records of all Project exploration and development work, funding, Expenditures, expenses, revenues, mining and milling data, and other metrics together with the results of surveys, drilling, assays made, shipments and all such records and results shall be available for inspection by Tara;

(vii)

must provide written updates of the exploration activity and relevant exploration results on the Project, including detailed drill results and assays, on a quarterly basis; the Operator must also promptly notify Tara of any and all material results from the Project;

(viii)

must provide written updates of the mining activity and relevant metrics on a quarterly basis; the Operator must  also promptly notify Tara of any and all material mining issues that may significantly vary expected results;

(ix)

must provide written updates of the milling/processing activity, the derived revenue, and relevant metrics on a quarterly basis; the Operator must also promptly notify Tara of any and all material milling/processing issues that may significantly vary expected results;

(x)

must maintain adequate insurance coverage in accordance with normal industry standards and practice, naming the parties as insured and protecting the parties from third party claims, and shall provide satisfactory evidence of such insurance at the request of Tara;

(xi)

must pay or cause to be paid all invoices for all materials and services purchased by the Operator in connection with work on the Project and maintain the Project free of all encumbrances;

(xii)

must produce accurate, comprehensive and complete monthly financial and accounting reports, to be delivered to Tara no later than the 10th business day following the end of each month;

(xiii)

must provide Tara with; (i) quarterly reports indicating the status of all work on the Project and a summary of all results obtained or received in connection therewith, and the compilation and interpretation thereof as well as a breakdown of the Expenditures incurred in carrying out such work reconciled with budgetary progress for such time period and conclusions of drilling results; and (ii) timely reports and information and forthwith upon the occurrence of any material results or other events, 

6

notice in reasonable detail, and will provide copies of relevant data of such material results or events;  and

(xiv)

must use qualified and licensed employees, agents and independent contractors under the management and direction of the operator of the Project and any payment for wages, benefits, any statutory withholdings or remittances, employment related matters or applicable contractual fees required to be paid to the workforce will be made by the Operator.

(b)

The Definitive Agreement will provide that Tara shall have the right to review and, if required, dispute the contents of any reports as to Expenditures incurred or compliance with the terms of the approved budget by the independent accountants of Tara.  The Operator shall provide access, upon every reasonable request, to Tara to all work papers of the Operator, accounting books and records and the appropriate personnel to verify the accuracy, presentation and other matters relating to the preparation of such reports. 

7.

Management Committee

The Definitive Agreement will provide that a formal management committee (the “Management Committee”) will be established.  The members of the Management Committee will consist of two representatives appointed by Tara and two representative appointed by SD-CHRE.  The Management Committee will discuss, at least once every two weeks, during the Start-Up Period and, in any event, within 10 days of being requested to do so by a representative of either party to address matters relating to the work and payments being conducted by or on behalf of the Operator on or in connection with the Project.  A majority vote is needed for approval of matters with three members needed for quorum. At each meeting, the Operator will provide information concerning the amounts being expended as Expenditures at such time and the purposes of such expenditures.  For certainty, the Management Committee shall, among other things: (a) approve programs and budgets proposed by the Operator; (b) monitor and make on-going recommendations regarding Expenditures; (c) monitor and make on-going recommendations regarding work on the Project and locations and determination for the conduct of such exploration, development and expansion work; (d) approve any Expenditures not included in the budget and exceeding US$50,000; and (e) provide such other advice and direction as it sees fit. 

8.

Termination of the Option

The Definitive Agreement will provide that, if SD-CHRE terminates the Option, SD-CHRE will have 60 days to:

(a)

CHRE will deliver to TARA all data, reports and technical information prepared by or for it related to the Project upon receipt payment for work completed to date; and

(b)

to vacate the Project concessions without any right to remove any vehicles, equipment, portable structures and other apparatus belonging to the Project and/or acquired towards the satisfaction of the Option.

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9.

Business operations

The Definitive Agreement will provide that, other than as set out in Section 10, each party shall be free to conduct its business operations independently any without any communication, notice or reference to the other party and neither party will have the obligation to invite the other party to participate in any negotiations, dealing or agreements with any third parties whether in Mexico or in any other jurisdiction.  For further clarity, Tara shall have all right of passage necessary to work on the concessions that it continues to control 100%.

10.

Area of Interest

(a)

The Definitive Agreement will provide that, if at any time after the execution of the Definitive Agreement, either SD-CHRE or Tara desires to acquire, or causes any other party to acquire, a mining concession or property (or any direct or indirect right, title or interest therein) (a “Mineral Interest”), which is located or lies wholly or partly within five (5) kilometers of the circumambient boundaries of any part of the Concessions as they exist on the date of the Definitive Agreement (the “Area of Interest”) then, such party shall notify the Management Committee of its intention to acquire such Mineral Interest and the Management Committee shall either unanimously approve or reject such transaction. The parties hereby acknowledge and agree that they will only acquire Mining Interests that have been approved by the Management Committee as herein provided. The approval of the Management Committee shall include an approval of the purchase price, form of payment and other details of the acquisition transaction. Any Mineral Interest so acquired will be transferred to the Project upon exercise of the Option and shall form part of the Concessions and the Project and become subject to the Definitive Agreement. 

(b)

With the exception of termination pursuant to Section 16(c), if this LOI is otherwise terminated, then, for a period of one year after the termination of this LOI, then SD-CHRE and each of its Affiliates will not acquire any Mineral Interests located wholly or in part within the Area of Interest.

11.

Representations and Warranties of Tara

The Definitive Agreement will provide for the following representations and warranties to be given from Tara Minerals to SD-CHRE:

(a)

Tara Mexico is the sole and exclusive legal and beneficial owner of a 100% interest in and to the Concessions; the Concessions are free and clear of any and all encumbrances, security interests, charges, actions or claims other than those stated in Exhibit “A”;

(b)

there are no actions, suits or proceedings, pending or, to the knowledge of Tara, threatened against Tara or Tara Mexico, at law or in equity, or by any federal, provincial, state, municipal or other governmental department, commission, board, bureau or agency, domestic or foreign in respect of the Concessions, Tara is not aware of any existing grounds on which any such action, suit or proceeding 

8

might be commenced with any reasonable likelihood of success other than those stated in Exhibit “A”;

(c)

there are no outstanding rights, agreements or obligations, or understandings capable of becoming rights, agreements or obligations, to acquire any right, title or interest in or to the Concessions or to grant any interest in or encumbrance on the Concessions other than those stated in Exhibit “A”; and

(d)

subject only to the rights of any government authority having jurisdiction, no person, governmental entity or corporation or association of any kind is entitled to or has been granted any royalty or other payment in the nature of rent or royalty on any minerals, metals or concentrates or any other product mined, produced, removed or otherwise recovered, or to be mined, produced, removed or otherwise recovered, from the mining lots that are covered by the Concessions other than those stated in Exhibit “A”.

12.

Confidentiality

The terms of this LOI, including the terms of the proposed transactions contemplated hereunder and the fact that the parties are pursuing such transactions, are confidential and, except as expressly permitted by this LOI, neither party shall disclose any of such information to any person or entity without the prior written consent of the other. The foregoing will not apply to the extent that disclosure is required by applicable laws or a stock exchange or regulatory authority having jurisdiction. 

13.

Announcements

Neither party shall make any public statement or issue any press release concerning the transactions contemplated by this LOI without the prior written consent of the other party, except as may be necessary in the opinion of counsel to the party making the disclosure to comply with the requirements of any applicable law.  If any such public statement or press release is so required, the party making such disclosure shall consult with the other party prior to making such statement or release, and the parties shall use all reasonable efforts, acting in good faith to agree upon a text for such statement or release that is satisfactory to all parties.

14.

Expenses

SD-CHRE and Tara agree that all out-of-pocket expenses and disbursements incurred in connection with this LOI and the completion of the transactions contemplated herein, including fees and expenses relating to legal, tax, accounting matters and financial advisor fees, will be paid by the party incurring such expenses in the event that the LOI is terminated. In this event, SD_CHRE is under no obligation to turn over data developed.

15.

Assignment

(a)

SD-CHRE shall not have the right to sell, transfer and assign this LOI and related documents to any affiliate or arm’s length third party without the prior written consent of Tara. (other than Nominee to include Principals of Springbok & Claridge-Hanlon)

9

(b)

Tara shall not assign all or any part of its interest in this LOI or related documents or the Project to a third party that is not an affiliate of Tara without the prior written consent of SD-CHRE.

16.

Termination

The LOI will terminate with the parties having no obligations to each other, other than the obligations contained in Section 18, on the date (the “Termination Date”) of the earliest of the following events:

(a)

written agreement of the parties to terminate the LOI; 

(b)

the Definitive Agreement not being executed and delivered by the  parties on or before 90 days from the Effective Date, or such other date as the parties may agree upon in writing; 

(c)

the execution of the Definitive Agreement;

(d)

either of the respective boards of directors of SD-CHRE or Tara not approving the transactions contemplated by this LOI; 

(e)

any applicable regulatory authority having notified either party, in writing, that it will not permit the transaction to proceed.

17.

Exclusive Dealings Pending Completion of the Definitive Agreement

From the Effective Date until such time as the Definitive Agreement is executed or this LOI is terminated in accordance with Section 16 (the “Exclusivity Period”), in consideration of the time and resources that parties will devote to settling the Definitive Agreement, Tara agrees not to enter into any form of agreement for the sale, disposition or transfer of the Concessions or any interest in the Concessions with any third party. 

18.

Binding Provisions 

The obligation of CHRE to return information under Section 3 and the obligations of the parties under Sections 10(b), 12, 13, 14, 16, 17, 19, 20 and 21 of this LOI (collectively, the “Binding Provisions”) are all intended to be binding on the parties, and each party acknowledges that it has received good and fair consideration in respect of the foregoing Sections and, to this end, each party will pay to the other party the sum of US$10.00 as recognition of that consideration, which is deemed to be paid and received.   Other than with respect to the Binding Provisions, this LOI does not result in the formation of a legally binding agreement between the parties.  A legally binding agreement will not be formed unless and until the parties have negotiated, settled, executed and delivered the Definitive Agreement. 

19.

Entire Agreement

The Binding Provisions constitute the entire agreement between the parties.  

10

20.

Enurement

The Binding Provisions will be binding upon, and will enure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.

21.

Governing Law

This LOI, the Definitive Agreement and any other agreement or instrument contemplated by this LOI and their application and interpretation will be governed by and interpreted in accordance with the laws of Nevada and the applicable federal laws of the United States.

22.

Execution of LOI

The terms of this LOI are open for acceptance until May 3, 2011 at 5:00 p.m. PST after which time this LOI and the terms set out herein shall expire.  If you are in agreement with the terms of this LOI, please sign and return to my attention one executed copy.

I look forward to your response and advancing our mutual interest in the exploration and development of the Don Roman Project.

Yours truly, 

[ SIGNATURE PAGE TO FOLLOW ]

11

CLARIDGE-HANLON RESOURCE ENGINEERING,

A division of Hanlon Engineering & Architecture, Inc., an Arizona Corporation

 

 

Signature:

_____________________________

Name:

Robert J. Hanlon,

Title:

President 

The terms and conditions of this LOI are hereby accepted and agreed to by the undersigned this ____3rd___ day of May, 2011.

Springbok Development, LLC

Signature:  ______________________________

Name:       ______________________________

Title:        _______________________________ 

The terms and conditions of this LOI are hereby accepted and agreed to by the undersigned this _______ day of May, 2011.

		
	TARA MINERALS CORP.

Signature:      ________________________

Name Print:

Francis R Biscan Jr

Title:

            President

	 

	 
	 

12

Exhibit “A”

Don Roman Project Concessions

					
	Proyecto:

	DON ROMÁN

	 
	 
	 
	 
	 

	Title

	Name

	Hectares

	Municipality

	Estado

	208,524

	María de Lourdes

	200.0000

	Choix

	Sinaloa

	217,789

	La Nuvia

	11.7580

	Choix

	Sinaloa

	218,519

	Nuvia 2

	28.9484

	Choix

	Sinaloa

	222,489

	Santa Lucía

	21.4072

	Choix

	Sinaloa

	226,470

	Don Román

	57.1999

	Choix

	Sinaloa

	 
	Total =

	319.3135

	 
	 

	 
	 
	 
	 
	 

	Proyecto:

	CHOIX/PILAR

	 
	 
	 
	 
	 

	Title

	Name

	Hectares

	Municipality

	State

	218,590

	La Víbora

	48.0000

	Choix

	Sinaloa

	222,496

	La Amapita

	50.0000

	Choix

	Sinaloa

	228,090

	Elizabeth

	100.0000

	Choix

	Sinaloa

	229,039

	Montaña de Cobre

	191.0000

	Choix

	Sinaloa

	229,041

	El Sabino

	100.0000

	Choix

	Sinaloa

	229,043

	Cobriza

	205.0000

	Choix

	Sinaloa

	230,342

	El Oro

	400.0000

	Choix

	Sinaloa

	230,886

	La Reforma

	395.5419

	Choix

	Sinaloa

	 
	Total =

	1489.5419

	 
	 

	 
	 
	 
	 
	 

	Proyecto:

	CENTENARIO

	 
	 
	 
	 
	 

	Title

	Name

	Hectares

	Municipality

	State

	229,013

	El Mono

	100.0000

	Choix

	Sinaloa

	229,014

	Reyna

	100.0000

	Choix

	Sinaloa

	229,015

	Centenario

	400.0000

	Choix

	Sinaloa

	230,121

	La Verde

	400.0000

	Choix

	Sinaloa

	231,261

	El Mono

	200.0000

	Choix

	Sinaloa

	231,262

	El Sol

	200.0000

	Choix

	Sinaloa

	235,307

	Sanaloya

	4654.3039

	Choix

	Sinaloa

	235,308

	Sanaloya Fracción A

	3.7305

	Choix

	Sinaloa

	 
	Total =

	6058.0344

	 
	 

	 
	 
	 
	 
	 

13

					
	Proyecto:

	LA PALMA

	 
	 
	 
	 
	 

	Title

	Name

	Hectares

	Municipality

	State

	230,341

	La Verde 3

	110.1261

	Choix

	Sinaloa

	233,630

	La Verde 4

	396.9300

	Choix

	Sinaloa

	233,738

	La Verde 6

	412.7720

	Choix

	Sinaloa

	233,203

	El Pino

	400.0000

	Choix

	Sinaloa

	236,500

	Choix

	496.3632

	Choix

	Sinaloa

	236,501

	La Palma

	287.8208

	Choix

	Sinaloa

	 
	Total =

	2104.0121

	 
	 

	 
	 
	 
	 
	 

	Proyecto:

	LA VERDE

	 
	 
	 
	 
	 

	File #

	Name

	Hectares

	Municipality

	State

	095/13646

	Mina el Rosario

	54.2402

	Choix

	Sinaloa

	095/13521

	La Verde 5

	72.7999

	Choix

	Sinaloa

	 
	Total =

	127.0401

	 
	 

·

Tara has the beneficial rights to all the concessions above except for Mina el Rasaro (file # 095/13646) and La Verde 5 (file # 095/13521). The agreements for these two concessions have been notarized. 

·

All concession acquisition payments regarding the above concessions is the responsibility of Tara.  There are payments outstanding for several concessions and these will be summarized within the Definitive Agreement.

·

Tara will provide the underlying vendor agreements for the concessions within the Definitive Agreement. Other than acquisition payments, the Operator will be responsible for meeting all the vendor terms and keeping the concessions in good standing.

14Converted by EDGARwiz

  RENDERING OF SERVICES CONTRACT CELEBRATED ON ONE HAND BY A) AMERICAN METAL MINING, S. A. DE C. V:, REPRESENTED IN THIS ACT BY MR. RAMIRO TREVIZO LEDEZMA IN HIS PERSONALITY AS LEGAL REPRESENTATIVE (HENCEFORTH KNOWN AS THE “CLIENT”) AND ON THE OTHER BY MACO PBB, S. A. DE C. V., REPRESENTED IN THIS ACT BY MR. CARLOS ALBERTO MARTÍNEZ IN HIS PERSONALITY AS LEGAL REPRESENTATIVE (HENCEFORTH KNOWN AS THE “LENDER”) IN ACCORDANCE WITH THE FORTHCOMING STATED PREVIOUS RECORDS, DECLARATIONS AND CLAUSES.
 

 

 CLAUSES
 

 

 I.
 In recently past days, the CLIENT subscribed a transfer of mining rights contract   with different people in order to acquire 100 % of the rights derived from the   concession named “TANIA”, described in detailed in the table immediately below   (the “CONCESSION”):
 

 

 	 	
	 Title
	 n/d

	 File
	 102/00407

	 Surface
	 3,233-01-47 Hectares

	 Locaton
	 Pedro Núñez Ejido, Municipality of Manzanillo, Stateof Colima.

  

 

 

 II.
 The CLIENT requires the support of people involved in mining expertise, 
 specifically in the process of diverse mineral materials to be extracted from the   location comprising the CONCESSION in order to obtain concentrate from such   material;
 

 III.
 The CLIENT estimates that the LENDER accounts with the necessary and 
 sufficient materials as well as human resources in order to completely comply with   the obligations he contracts by the subscription of this instrument;
 

 IV.
 The LENDER considers that the CLIENT satisfies the economic resources 
 required and, additionally, the solvency and liquidity in order to satisfy completely   the obligations he contracts by the subscription of this present contract, and;
 

 V.
 By virtue of the before stated, PARTIES have decided to subscribe this present 
 contract in writing.
 

 

 DECLARATIONS
 

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 RENDERING OF SERVICES CONTRACT SUBSCRIBED BETWEEN AMERICAN METAL MNING, S. A. DE C: V: AND MACO PBB MEXICO, S. A: DE C: V: ON THE 4TH MAY 2011.
 

 
 
 I.
 The CLIENT declares through the offices of his legal representative and under oath   of stating the truth, that:
 

 1: It is a Mexican mercantile society, specifically a Stock Company with Varying   Amount of Capital, duly established and in operation in agreement with the   applicable and current legislation of the United States of Mexico, as witnessed in   Public Writ number 17,227, granted on the 4th December 2006 before testimony of   Mr. Eugenio Fernando García Russek, Attorney at Law and applicant to the office   of Notary Public, and ascribed to Public Notary number 28 of the Morelos Judicial   District, State of Chihuahua and acting as Public Notary per license of the office’s   title holder Mr. Felipe Colomo Castro, Attorney at Law, and instrument that was   duly inscribed before the Public Registry of Property and Commerce of said district   under electronic mercantile folio number 23,327*10 as of the 22nd December 2006,   and reason why he enjoys the sufficient and necessary capacity to intervene in this   present judicial act;
 

 2.  Its representative enjoys the faculties, powers, the sufficient and necessary 
 mandates in order to subscribe this present contract in representation of the   LENDER as indicated in this present instrument in its before stated numeral, same   that have not been restrained, limited, suspended or revoked to date;
 

 3. It accounts with the sufficient and necessary economic resources, as well as with   the corresponding solvency and liquidity in order to completely satisfy the   obligations he contracts by virtue of this present contract;
 

 4. To be duly inscribed in the Federal Taxpayers Registry with Fiscal Identification   Card number AMM-061204-4R7 and being to date current in his income tax   payments and other contributions and taxes that might have corresponded in   accordance with the applicable and current legislation concerning fiscal matters.
 

 5. It is the will of its Administration Board to subscribe this present instrument 
 with the purpose that the LENDER undertakes all of the necessary activities to   adequately process the mineral material mentioned above.
 

 

 II.
 The LENDER declares through the offices of his legal representative and 
 under oath of stating the truth, that:
 

 1. It is a mercantile society, specifically a Stock Company with Varying Amount of   Capital, duly established and in operation in agreement with the applicable and   current legislation of the United States of Mexico, as witnessed in Public   Writing   number 45256 granted on the 4th May 2011 before testimony of Mr. Jesús Orlando   Padilla Becerra, Attorney at Law Public Notary number 30 of the State of Mexico   and instrument that was duly inscribed before the Public Registry of Property and   Commerce of said district under electronic mercantile folio number (__________)   as of the (_________). 
 

 

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 RENDERING OF SERVICES CONTRACT SUBSCRIBED BETWEEN AMERICAN METAL MNING, S. A. DE C: V: AND MACO PBB MEXICO, S. A: DE C: V: ON THE 4TH MAY 2011.
 

 
 
 2. Its representative enjoys the faculties, powers, the sufficient and necessary 
 mandates in order to subscribe this present contract as evinced in Public Writing   number 45256, granted on the 4th May 2011 before testimony of Mr. Jesús Orlando   Padilla Becerra, Attorney at Law and Public Notary number 30 of the State of   Mexico, instrument that is duly inscribed in the Public Registry of Property and   Commerce of said district under electronic mercantile folio number (_____) as of   the (____) of May 2011, and same that have not been limited, suspended or revoked   in any manner whatsoever to date;
 

 3. That it in effect accounts with the necessary, sufficient human and material 
 resources to comply with the obligation he contracts by virtue of this contract and,   additionally, with the experience required in the mining field;
 

 4. That he knows the location where the undertaking will be carried out object of   this present contract having already inspected them thoroughly and, consequently,   having become familiar with the properties and characteristic of same as well as   with factors that will intervene in the execution of same labors;
 

 5. He is aware and understands the applicable and current legal dispositions in 
 mining  matters of the United States of Mexico, as well as with the studies, projects,   prints, specifications, work programs, budgets and other adjoined documents to this   present contract as Annexes;
 

 6. To be duly inscribed in the Federal Taxpayers Registry with Fiscal Identification   Card (_____) and being to date current in his income tax payments and other   contributions and taxes that might have corresponded in accordance with the   applicable and current legislation concerning fiscal matters, and;
 

 7. It is the will of its Administration Board to subscribe this present instrument 
 with the purpose of undertaking the necessary activities for the adequate execution   of the services in favor of the CLIENT.
 

 

 III.
 Both PARTIES declare, through their respective legal representatives, under oath   of stating the truth that they assist to the subscription of this contract per their own  and free will, free of deceit, violence, error, harm or any other vitiation in their   consent in order to commit themselves with the following:
 

 

 CLAUSES
 

 FIRST. OBJECT:  The CLIENT entrusts the LENDER and the LENDER accepts to carry out at location covering the CONCESSION the services of extraction and process of materials and minerals obtained from same that the CLIENT will indicate, specifically the iron metal, among others (the SERVICES) in exchange for a unit price payment per ton indicated in the Third Clause of this instrument as per the terms and conditions set down in the forthcoming clauses:
 

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 RENDERING OF SERVICES CONTRACT SUBSCRIBED BETWEEN AMERICAN METAL MNING, S. A. DE C: V: AND MACO PBB MEXICO, S. A: DE C: V: ON THE 4TH MAY 2011.
 

 
 SECOND. QUALITY OF CONCENTRATE:  In order that the CLIENT is in the possibility f paying the unit price per ton indicated in the following clause, each concentrate ton of the processed mineral material by the LENDER must have a minimum of 60 & (sixty per cent) of iron ore, in the understanding that if said concentrate does not meet the referred to percentage, the CLIENT will not be obliged to pay for it, a risk imputable to the LENDER due to the low mineral concentrate encountered at lot.
 

 In the event the concentrate does not meet the described specifications in the above written paragraph, the LENDER commits itself to process it once more in order to increase the required characteristics by the CLIENT and specified in this instrument, risk not imputable to the LENDER due to the low mineral concentrate found at lot.
 

 

 THIRD. TERMS AND CONDITIONS: In order to describe the manner in which the SERVICES must be rendered by the LENDER in favor of the CLIENT, there follows the principal terms and conditions applicable to this present contract:
 

 1. The LENDER commits himself to put in use for the rendering of the SERVICES   the totality of machinery and equipment necessary for the purpose, taking charge of   locating them at the site of the CONCESSION or at any other location as is   convenient for the correct rendering of the SERVICES, as well as to withdraw   stated machinery and equipment upon finishing the works. The list of machinery   and equipment that the LENDER must use for the rendering of the SERVICES is   adjoined to this instrument and Annex I.
 

 2. SERVICES will include cutting into the natural terrain, understanding that this   land excavation will be in a determined environment with the purpose of ripping the   land’s over load and reducing the level enabling the conformation of an adequate   support platform for such an effect. Likewise, it will include the removal of the   overburden in the natural terrain should there be the need of, as well as the removal,   the load and hauling of the material, rocks and land as debris generated by the   execution of the SERVICES; this will include the yard explanade, the engineering   and maintenance of the lot’s access roads.
 

 3. The CLIENT commits himself to receive and pay the totality of the concentrate   of the processed mineral material due to the execution of the SERVICES, if and   ever it complies to the specification agreed upon in this present document.
 

 4.  The LENDER will deliver to the CLIENT the concentrate at the site of the 
 CONCESSION as process goes along. However the before stated, the LENDER   will only be able to carry out payment as per the Sixth Clause of this contract per   each 10,000 (ten thousand) tons delivered to the CLIENT.
 

 5. In case the CLIENT needs a modification to the specifications of the concentrate,   he will solicit such to the LENDER at least 72 (seventy two) hours in advance from   the date he requires. In this case, the unit price previously convened may be   modified by the PARTIES.
 

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 FOURTH. COUNTERCLAIM: The CLIENT commits himself to pay to the LENDER for the rendering of SERVICES, per each ton of iron ore concentrate delivered as per the before set specification the amount indicated following:
 

 

 	 	 	 	 	
	 Product
	 Type/tma
	 Quality
	 Unit measure
	 Unit Price – USA Dollars per ton

	 Mineral material
	 Iron ore sands
	 60% minimum iron ore
	 ton
	 $7.75 Dollars

  

 

 The totality of the works or services entrusted in this contract to the LENDER amount to an important value of: $23,250,000.00 (twenty three million two hundred and fifty thousand Dollars 00/100 in United States Currency), if and ever the deposit merits the volume and mineral quality and, if and ever it gathers the requirements of economic feasibility to both parties.
 

 On the other hand, PARTIES convene that the unit price before mentioned can be reviewed each 90 (ninety) days during the duration of this present contract.
 

 

 FIFTH. ADVANCE: The CLIENT obliged himself to surrender as of this date an advance of $175,000.00 Dollars (One hundred and seventy five thousand Dollars 00/100 in United States Currency) in the understanding that it must be applied by the LENDER for office construction, buildings, warehouses and installations, and be it the case, for moving machinery and construction equipment necessary for the rendering of services object of this present contract.
 

 The amount of the advance will be charged to the COUNTERCLAIM to be paid by the CLIENT and will amortized during the first 6 (six) months of duration of this present contract, applying at least 20 % (twenty per cent) to the import of each estimate carried out due to the execution of the SERVICES rendered by the LENDER to such an effect.
 

 In case there be a balance lack to be amortized, this must be liquidated at final estimate, that is, the last to be presented for payment on the part of the LENDER.
 

 

 SIXTH. ESTIMATES: The LENDER expressly agrees that in addition to the advance amount referred to in the Fifth Clause, the remaining COUNTERCLAIM must be paid in agreement with the terms and conditions before stated, that is, per each 10,000 (ten thousand tons) of iron ore concentrate delivered to the CLIENT in agreement with the unit price set down in the Fourth Clause of this instrument.
 

 In order for the CLIENT to be in the possibility of knowing the quality of the iron ore concentrate and is able to pay the described estimates in favor of the LENDER according to the counterclaim indicated in this contract, PARTIES agree that the CLIENT will 
 

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 submit said concentrate to a specialized lab in the matter and of his choice, and payment for said estimates must be done once the lab certificate has been issued certifying the ore’s quality as per the previous Second Clause, in the understanding that the cost of such a certificate will be paid by the CLIENT.
 

 

 SEVENTH. MANNER AND PLACE OF PAYMENT:  The portion of the paid COUNTERCLAIM in cash, will be carried out by the CLIENT in favor of the LENDER through the means of a bank deposit or electronic transfer of funds to bank account number 8005467, Branch 573, CLABE number 0021 8005 7380 0546 76 of Banamex Banking Institution within the following 5 (five) able days of the date in which the specified amount to be paid if made known.
 

 Against payment of any amount, the LENDER must issued and deliver to the CLIENT the corresponding vouchers heeding in every instance to the applicable and current fiscal dispositions.
 

 

 EIGHTH. TERM OF EXECUTION: The LENDER obliges himself to begin the undertakings object of this present contract within 21 (twenty one) able days following the signature of this present instrument, on one hand or payment of the corresponding advance on the other, in the understanding that commencement will begin as of the last matter that takes place. Considering the nature of the SERVICES, the LENDER commits himself to end the SERVICES as becomes convenient to the CLIENT.
 

 

 NINTH. DURATION: This present contract will begin to be in effect as of the date of its subscription and will remain current until the date of the termination of the SERVICES and the corresponding end payment. Non the less, depending upon the nature and difficulty of the works object of this contract as well as by the entrustment on the part of the CLIENT of additional or different works, the duration of same can be extended both PARTIES agreeing.
 

 

 TENTH. DOCUMENTATION AND ADMINISTRATIVE PERMITS: The whole of permits, authorizations or whatever other similar administrative document must be obtained by the CLIENT and submitted to the LENDER in ordinary copy in order to allow the beginning of the SERVICES.
 

 

 ELEVENTH. QUALITY OF SERVICES: PARTIES convene that the execution of the totality of the SERVICES object of this contract be carried out to the CLIENT’S satisfaction.
 

 TWELFTH. RECEIVING CONCENTRATE: The LENDER will solicit from the CLIENT for this latter to deliver the concentrate sent to him for process as soon as 
 

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 possible. The CLIENT will undergo reception of concentrate in order to ship it to the corresponding certification lab.
 

 THIRTEENTH. SUBCONTRACTING: For the execution of the SERVICES the LENDER will make use of its own working force. However, in order to proceed to a partial subcontract of the works object of this present instrument, (will be) per the exclusive criterion of the LENDER for the execution of the SERVICES. In any case, the LENDER will answer to the CLIENT for the works carried out by such individuals, and holding to himself to (claim) against them in case of an undue execution of the works that might have been entrusted to them.
 

 FOURTEENTH. LABOR RELATIONS: The LENDER will be the responsible entity for the obligations derived from the applicable and current legal dispositions in labor matters and of social security, expressly accepting to answer to all the claims that his work force could present against him or against the CLIENT related to the works object of this contract.
 

 When the LENDER should entrust the execution of the mentioned works to any individual or corporation employing people in the development of its activities, (either of these latter) will be the only responsible entity for the obligations derived from the applicable and current legal dispositions in labor matters and of social security, and be subject to expressly accept all the claims that their workers could put up against the CLIENT or the LENDER in relation to the works object of this present instrument.
 

 In case, the LENDER commits himself to safeguard the CLIENT and peacefully protect him from any claim that by reason of this contract his own workers might intend on one hand or the subcontractor’s workers to whom he has partially or in total entrusted the works object of this contract on the other.
 

 

 FIFTEENTH. SERVICE SUPERINTENDENT: The LENDER commits himself to name, in advance of the beginning of the works object of this present contract, a representative who will remain per possible means at the site of such labors and who will act as construction superintendent, individual who will enjoy the powers, the widest and sufficient faculties for decisions in anything related with the compliance of this instrument. Per criterion of the LENDER, the said superintendent could be his worker on one hand or any (third party) service render on the other. The CLIENT, in case of experiencing any kind of incompetence on the part of the nominated superintendent can request he be replaced at any time during the execution of the SERVICES.
 

 

 SIXTEENTH. MATERIALS AND EQUIPMENT: The LENDER commits himself that the machinery and equipment put to use in the works object of this present contract comply with the established standards, applicable and current, in the construction field as well as with the particular specifications of the project being part of this instrument, and vying in every instance they be of the best possible quality available.
 

 

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 RENDERING OF SERVICES CONTRACT SUBSCRIBED BETWEEN AMERICAN METAL MNING, S. A. DE C: V: AND MACO PBB MEXICO, S. A: DE C: V: ON THE 4TH MAY 2011.
 

 
 SEVENTEENTH. EQUIPMENT AND WORK SUPERVISION: The CLIENT will be endowed to verify at any moment if the work object of this contract is being carried out by the LENDER in conformity with the dispositions, the specifications and the corresponding work program set down in the project be it personally or through the offices of a third party he names.
 

 

 EIGHTEENTH. LENDER’S CIVIL RESPONSIBILITY: Taking into consideration that during the execution of the SERVICES mechanical instruments will be used as well as dangerous substances and instruments per themselves due to the speed they carry either by their explosive or flammable nature, or by the energy of the electric current they bear or by any other analogue reason, in conformity with the dispositions of the applicable articles of the Civil Code of the Federal District, the LENDER will be obliged to answer for the damages caused by the materials he uses, his workers or the persons he subcontracts, independently that such individuals act illegitimately or not, unless it is proven that the damage occurred by the fault or the inexcusable negligence of the victim; also, the LENDER will have to answer and to repair the whole of the damages caused by his workers to the goods of the CLIENT, or to his subcontractors, the buildings, housing, roads, real estate or any other mobile good of nearby neighbors to the CLIENT’S site, as well to the infrastructure already built in the developed land located in the CLINET’S premises as could be retainer walls, yards, fences, hydraulic systems or any other kind of infrastructure already built at the moment of carrying out works on the part of the LENDER.
 

 Consequently, the LENDER commits himself to safeguard and peacefully protect the CLIENT from any claim that by reason of the execution of the works object of this present contract his own workers might intend, or the subcontractor’s workers to whom he partially or in total entrusted carrying out same works per concept of damages.
 

 In any case, the LENDER keeps to himself the right to (claim) against his own workers or of the subcontractor’s workers to whom he entrusted the execution the object of this present instrument when he pays for the damages they caused among themselves or to third parties.
 

 

 NINETEENTH. CONFIDENTIALITY: PARTIES commit themselves expressly to kept in a confidential character the totality of past, present and future information related with this present instrument and extending same obligation to any individual or corporation it is disclosed to.
 

 The PARTY recipient of confidential information must limit access to it to his representatives or employees who, under a justified and reasonable cause might request access to it. In such cases, PARTIES must commit such entities to the confidentiality obligations agreed upon in this instrument.
 

 For purposes of this present clause, the following will not be considered confidential information: 1. Information legitimately known and obtained by the recipient PARTY prior to the subscription of this instrument; 2. Information that is considered as of date or in th 
 

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 future as public domain if and ever such consideration did not stem from the non compliance of any of the PARTIES to the stipulations in this clause, or; 3. Information that has to be disclosed per law or an administrative or judicial mandate by competent authorities.
 

 PARTIES agree that the duration of the obligations contracted by virtue of this present clause will subsist indefinitely, even after the termination of this present contract.
 

 In case of non compliance, PARTIES reserve to themselves those actions that per law correspond to them, both administrative and judicial, in order to claim indemnity for harms and damages, as well as to present any sanction be it the case.
 

 

 TWENTIETH. ADVANCE TERMINATION: PARTIES agree that only the CLIENT is the one able to desist from the execution of the SERVICES on one hand or to suspend same in a temporary manner on the other, in whole or partially, and notifying in writing at least 15 (fifteen) natural days prior its counterpart only after covering in favor of the LENDER all non recoverable expenses and works carried out, if and ever these are reasonable, are duly proven and related with the execution of the SERVICES.
 

 

 TWENTY FIRST. GUARANTEE: In order to guarantee the correct application of the amount extended as advance, as well as the compliance of this contract, the LENDER must subscribe upon the date of signature of this present contract a promissory note in favor of the CLIENT for the amount of $175,000.00 Dollars (one hundred and seventy thousand Dollars 00/100 in United States Currency) and which was subscribed with an expiration dateline of the 1st January 2012 (1/1). This guarantee will remain in effect until the totality of the advance is returned.
 

 TWENTY SECOND. CANCELLATION OF CONTRACT:  PARTIES convene that the CLIENT can cancel this present contract in case of non compliance on the part of the LENDER. Such cancellation will bear full rights without the need of a judicial declaration it being sufficient that any of the below indicated cause may arise:
 

 1. If the works object of this present contract are not begun on the stated date of 
 commitment, if and ever to the CLIENT’S judgment the delay cannot be   reprogrammed;
 

 2. If the SERVICES are stopped without any justification or reparation is denied or   a reposition of any portion of them that might have considered flawed by the   CLIENT;
 

 3. If the works are not carried out in conformity with the stipulation of this 
 instrument and it Annexes;
 

 

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 RENDERING OF SERVICES CONTRACT SUBSCRIBED BETWEEN AMERICAN METAL MNING, S. A. DE C: V: AND MACO PBB MEXICO, S. A: DE C: V: ON THE 4TH MAY 2011.
 

 
 
 4.  If the work schedule does not meet the program and per the CLIENT’S 
 judgment this delay can impair a satisfactory conclusion of the works within the   stipulated date line.
 

 5. If it does not in all opportunity cover the workers’ salaries and other labor 
 benefits and of social security on one hand and, on the other, stops paying the   entrusted service renderers;
 

 6. In general, for non compliance or violation on the part of the LENDER to any of   the obligations derived from this present contract as well as from the applicable and   current legal dispositions.
 

 Likewise, PARTIES convene that the LENDER can cancel this present instrument    in case of non compliance to any of the obligations set down herein, on the part of   the CLIENT, such as payment of the amounts per advance concepts, advance   estimates, administrative paper work and discharge, be it the case, in full right,   without the need of a judicial declaration.
 

 TWENTY THIRD. CANCELLATION PROCEDURE: In case of non compliance or of violation by any of the PARTIES to any of the stipulations of this present contract, they can chose to demand compliance to same and of the conventional penalties agreed upon, declare cancellation of this instrument as per the following procedure:
 

 1. If any of the PARTIES considers that the other has incurred in any of the causes   of cancellation consigned in this contract, he will so advise its counterpart that this   latter may expose regarding what is within his right within a term of 10 (ten) able   days as of the date of reception of the respective notification, and;
 

 2. If the time term lapses on the part of the non compliant and it does not state 
 arguments in his defense on one hand, or if after analyzing the reasons invoked it   does not produce proof, the other part considering same are not satisfactory, within   the following 15 (fifteen) able days it will declare cancellation of the contract and   will communicate so stating its arguments.
 

 

 TWENTY FOURTH. FORTUITOUS EVENT OR FORCE MAJEURE:  When due to a fortuitous event or of case majeure it becomes impossible to continue with the works’ execution, the LENDER may stop the SERVICES temporarily, or, chose for an advance termination.. In this last case, it must put its request before the CLIENT immediately after the occurrence of the causes of origin, and he will resolve how to proceed within 15 (fifteen) able days following the reception of same. In case of a negative answer on the part of the CLIENT, it will become necessary for this latter to obtain the corresponding declaration from the competent judicial authority.
 

 In the event the temporary suspension is granted, the corresponding modifications must be established through the means of an agreement concerning the approved work program as well as the measures that must be implemented to safeguard the works and materials. 
 

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 Likewise, in such an agreement the time terms of suspension must be made known as well as the renewal of works and work termination without modifying the established dateline in the contract.
 

 TWENTY FIFTH. FISCAL OBLIGATIONS: On being approved and registered before the Federal Taxpayers Registry, PARTIES convene that each on its own will defray and separately tax payments that individually correspond to each in order to comply with the terms and conditions of this present instrument, heeding the applicable and current fiscal legislation, committing themselves to safeguard their counterpart regarding any fiscal responsibility that might be wrongly imputed by competent authorities in accordance with this contract. 
 

 

 TWENTY SIXTH. ADDRESSES AND CONTACT TELEPHONES: PARTIES agree that in everything regarding the execution and compliance of the terms and conditions of this present contract, as well as to carry out notices, announcements and other communications related with same, they state their addresses and contact telephones to be:
 

 

 	 	
	 The Client
 

 Calle California 5101, interior 206
 Col. Haciendas Santa Fe
 C. P. 31215
 Chihuahua, Chih.
 

 Phone: 01-614-200-8403
	 The Lender
 

 Av. Jorge Jiménez Cantú Mz. 1 it s/n
 Col. Bosques Esmeralda
 C. P. 52930
 Atizapán de Zaragoza, Estado de México
 

 Phone: 01-55-5308-7452

  

 

 

 In case it is their will to change addresses, PARTIES agree in notifying their counterparts of such a circumstance at least five (5) natural days in advance of the date in which the addresses are changed. Not complying to the obligation herein described will imply that the announcements, notifications or communications sent and delivered at the original address of the PARTY carrying the change of address, will bear full legal effects in favor of the PARTY that was not notified in all opportunity as of the date of delivery and for as long as the non compliance subsists.
 

 TWENTY SEVENTH: NOTIFICATIONS AND COMMUNICATIONS: PARTIES agree that any announcement, notification or communication necessary to their counterparts know must be done in writing. The before stated does not means that telephone communications between them is not agreed upon or permitted but that the relevant communications must be carried out in writing for a better judicial understanding on both PARTIES.
 

 Sending of said documents can be carried out via three means: 1. By ordinary courier delivered on hand or by certificate mail, both with acknowledgement of receipt; 2. Via Fax 
 

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 or; 3. By electronic mail. In this last case, sending will only be considered valid and legally carried out when the reception of the respective electronic mail is confirmed electronically within three (3) natural days following the sending expressly stating receipt, by means of a confirming answering message sent by the recipient.
 

 PARTIES agree likewise that announcements, notifications and communications carried out in relation to this present instrument will bear their respective effects on the day of their reception. In case that such message include some kind of term, this latter will begin to be in effect on the day following confirmation of reception regardless it is an able or natural day.
 

 TWENTY NINTH. CONTACT PERSONS: PARTIES agree that the totality of announcements, notifications or communications necessary to be carried out between them derived from the terms and conditions of this present instrument must be addressed indistinctly to the following persons:
 

 	 	
	 The Client
 

 RAMIRO TREVIZO LEDEZMA
 RAMIRO TREVIZO GONZÁLEZ
	 The Lender
 

 CARLOS ALBERTO MARTÍNEZ URIBE
 EDSEL COSÍO BARRAZA

  

 

 In case it is their will to change contact persons, PARTIES agree in notifying their counterparts of such a circumstance at least five (5) natural days in advance of the date in which the persons are changed. Not complying to the obligation herein described will imply that that the announcements, notifications or communications sent and delivered to the name of the original addressees of the PARTY carrying the change of address, will bear full legal effects in favor of the PARTY that was not notified in all opportunity as of the date of delivery and for as long as the non compliance subsists.
 

 

 THIRTIETH. ANNEXES AND TOTALITY OF CONTRACT: PARTIES accept expressly in obliging themselves in accordance to the terms and conditions established in this present instrument and adjoining annexes, same that on being signed make up part of same as if inserted verbatim.
 

 Thus, PARTIES accept that this contract and its annexes contain the totality of agreements between them regarding its object and leaving without effect as well as canceling the whole of agreements, reports, negotiations, correspondence, commitments and communications carried out previously between them either in writing or verbally.
 

 

 THIRTY FIRST. MODIFICATIONS: The terms and conditions of this present contract can only be modified by virtue of the subscription of modifying agreements between the PARTIES. To such agreements must be added, as annexes an ordinary copy of this 
 

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 instrument and its Annexes vying in all cases to reach a complete interpretation of the terms and conditions that the PARTIES might have agreed upon.
 

 

 THIRTY SECOND. INDEPENDENCE OF THE CLAUSES: In case that one of the clauses of this present instrument is declared invalid by a competent authority, the clause of them contained in same will remain being valid without them being affected by the respective resolution in any way whatsoever.
 

 THIRTY THIRD: APPLICABLE LEGISLATION: PARTIES commit themselves to strictly abide for the execution of the works object of this contract to each and all of the clauses it integrates and in a complementary manner to the dispositions set down in the Civil Code of the Federal District.
 

 THIRTY FOURTH. INTERPRETATION AND JURISDICTION: Conflicts that might arise regarding the interpretation and compliance with this present contract must be resolved by common agreement by the PARTIES within a time lapse of 30 (thirty) natural days as of the date in which any of them notifies the other of the existence of conflicts.
 

 In case the described conciliation is reached , PARTIES submit to the jurisdiction of the competent court of law of the Mexico City (Federal District), reason why as of this moment they renounce to the privilege that might correspond to them by reason of their present or future domiciles or by any other reason.
 

 

 BOTH PARTIES IN THE KNOWLEDGE OF THE TERMS AND CONDITIONS OF THIS PRESENT CONTRACT , SIGN IT IN CONFORMITY IN EACH OF ITS PAGES IN DUPLICATE IN THE CITY OF MANZANILLO, STATE OF COLIMA, IN THE PRESENCE OF TWO WITNESSES WHO LIKEWISE SUBSCRIBE IT ON THE THIRD DAY OF MAY OF THE YEAR TWO THOUSAND AND ELEVEN, EACH PARTY KEEPING A COPY OF THE CONTRACT.
 

 

 	 	
	 THE CLIENT
 

 AMERICAN METAL MINING,
 S.A. DE C. V.,
 Represented in this act by:
 RAMIRO TREVIZO LEDEZMA
	 THE LENDER
 

 MACO PBB MÉXICO,
 S. A. DE C. V.,
 Represented in this act by:
 CARLOS ALBERTO MARTÍNEZ URIBE

  

 WITNESSES
 

 	 	
	 

 Tzetzangari Ibarra Junquera
	 

 Elizabeth Rubí Rubio Campos

  

 

 

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 RENDERING OF SERVICES CONTRACT SUBSCRIBED BETWEEN AMERICAN METAL MNING, S. A. DE C: V: AND MACO PBB MEXICO, S. A: DE C: V: ON THE 4TH MAY 2011.
 

 
 Annex I
 

 Equipment, machinery, vehicles and other
 

 

 4 – MAQ 320H
 

 1 – MAQ D8
 

 1 – 12 X 36 screen with electrostatic equipment
 

 2 – Electromagnetic bins
 

 1 – Backhoe 
 

 2 – 4 X 4 Raptors
 

 1 – Weighing machine
 

 4 – ATHD ALLU SIS
 

 1 – MAQ 966
 

 1 – Camp set up
 

 1 – Scraper
 

 _____________________________________________________
 

 

 

 (In last page there follows a signed promissory note of payment)
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 14
 

 RENDERING OF SERVICES CONTRACT SUBSCRIBED BETWEEN AMERICAN METAL MNING, S. A. DE C: V: AND MACO PBB MEXICO, S. A: DE C: V: ON THE 4TH MAY 2011.
 

 
 RATIFICATION OF SIGNATURES
 

 

 The undersigned, René Manuel Tortolero Santillana, Attorney at Law, title holder of Notary Public number 4 of this demarcation, verify and---------------------------------------
 Certify
 that the signatures written at the bottom of this present contract are authentic and pertain to Messrs., Ramiro Trevizo Ledezma and Carlos Alberto Martínez Uribe as they were written in my presence and they stated that such signatures are the one they use in all of they acts public as private------------------------------------------------------------------------------------------
 

 I, Public Notary, so certify and give faith thereof, that I know the appearing parties who in my concept enjoy the civil capacity to contract and to commit themselves according to law-
 

 Reason was taken in the Certifications Book of this Notary Public in my charge in the city and port of Manzanillo, State of Colima on the 4th day of the month of May 2011-------------
 

 I so give faith---------------------------------------------------------------------------------------------
 

 

 	 	
	 THE CLIENT
 

 AMERICAN METAL MINING,
 S. A. DE C. V.,
 Represented in this act by:
 

 RAMIRO TREVIZO LEDEZMA
	 THE LENDER
 

 MACO PBB MÉXICO
 S. A. DE C. V.,
 Represented in this act by:
 

 CARLOS ALBERTO MARTÍNEZ URIBE

  

 BEFORE ME
 

 RENÉ MANUEL TORTOLERO SANTILLANA
 

 OFFICE TITLE HOLDER
 

 PUBLIC NOTARY NUMBER 4
 

 MANZANILLO, COLIMA
 

 ###
 

 15
 

 RENDERING OF SERVICES CONTRACT SUBSCRIBED BETWEEN AMERICAN METAL MNING, S. A. DE C: V: AND MACO PBB MEXICO, S. A: DE C: V: ON THE 4TH MAY 2011.

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