Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Romarco Minerals U.S. Inc. - Exhibit 4.2

 

 OPTION AGREEMENT 

This Agreement is made as of September 9, 2003

 BETWEEN: 

ROMARCO MINERALS INC., a corporation
  incorporated under the laws of Ontario and having an address of Suite 1500,
  885 West Georgia Street, Vancouver, British Columbia V6C 3E8, facsimile no.:
  (604) 688-9274 

(“Romarco”) 

AND: 

SEABRIDGE GOLD INC., a corporation
  incorporated under the laws of Canada and having an address of 172 King Street
  East, 3rd Floor, Toronto, Ontario, M5A 1J3, facsimile no.: (416)
  367-2711 

(“Seabridge”) 

WHEREAS: 

	 A.      	 Seabridge has the right to conduct mining exploration
        and related operations on certain properties known as the Hog Ranch Project
        located in Washoe County, Nevada; and 

	 
	 B.      	 Seabridge has determined to grant Romarco an exclusive
        option to earn a joint venture interest in the Hog Ranch Project. 

 NOW THEREFORE in consideration of the mutual promises
  made to each other in this Agreement, Seabridge and Romarco (each a “Party”
  and collectively the “Parties”) hereby agree as follows:

	 1.      	 Representations and Warranties
      

	 
	 1.1      	 Seabridge represents and warrants to Romarco
        that: 

	 
	 	 (a)      
	 Seabridge is a corporation duly organized,
        validly existing, and in good standing under the laws of Canada. 

	 
	 	 (b)      
	 Seabridge has the requisite corporate
        power and authority: 

	 
	 	 	 (i)     
      
	 to enter into this Agreement and all other agreements
        contemplated hereby, and 

	 
	 	 	 (ii)      
	 to carry out and perform its obligations under the
        terms and provisions of this Agreement and all agreements contemplated
        hereby. 

	 
	 	 (c)      
	 All requisite corporate action on the
        part of Seabridge, and its officers and directors, necessary for the execution,
        delivery and performance of this Agreement and all other agreements of
        Seabridge contemplated hereby, have been taken. This Agreement and all
        agreements and instruments contemplated hereby, when executed and delivered
        by Seabridge, will be legal, valid, and binding obligations of Seabridge
        enforceable against Seabridge in accordance with their terms. The execution,
        delivery and performance of this Agreement will not violate any provision
        of law; any order of any court or other 

 - 2 - 

	 	 	agency of government; or
        any provision of any indenture, agreement or other instrument to which
        Seabridge is a party or by which its properties or assets are bound; or
        be in conflict with, result in a breach of, or constitute (with due notice
        and lapse of time) a default under any such indenture, agreement or other
        instrument. There is no law, rule or regulation, or any judgment, decree
        or order of any court or governmental authority binding on Seabridge which
        would be contravened by the execution, delivery, performance or enforcement
        of this Agreement or any instrument or agreement required hereunder. However,
        no representation is made as to: 

	 	 	 	 
	 	 	(i)
	the remedy of specific performance or other equitable
        remedies for the enforcement of this Agreement or any other agreement
        contemplated hereby; or 

	 	 	 	 
	 	 	(ii) 
	rights to indemnity under this Agreement for securities
        law liability. 

	 	 	 Additionally, this representation is limited by
        applicable bankruptcy, insolvency, moratorium, and other similar laws
        affecting generally the rights and remedies of creditors and secured parties;
      

	 
	 	 (d)      	 Seabridge holds a 100% leasehold interest in the
        238 mining claims (the “Property”) which are subject
        to the terms and conditions of the lease agreement dated November 15,
        2000 by and between Seabridge and Platoro West Incorporated (the “Platoro
        Lease”) which is attached hereto (with amendments) as Schedule
        “A”, which claims are granted and held pursuant to the United
        States Mining Law of 1872; 

	 
	 	 (e)      	 Seabridge has complied with all of the terms and
        conditions of the Platoro Lease and is not in default thereunder and the
        Platoro Lease continues to have legal force and effect in accordance with
        its terms; 

	 
	 	 (f)      	 To the best of its knowledge and belief each of
        the unpatented claims included in the Property will have been validly
        located, filed and recorded in compliance with the laws of the State of
        Nevada and of the United States as they relate to location and recording
        of such claims; that Seabridge will have timely complied with all of the
        filing provisions of the Federal Land Policy and Management Act (43 U.S.C.
        Section 1701, et seq.) as they pertain to the unpatented claims included
        within the Property and that said claims are valid and subsisting mining
        claims; 

	 
	 	 (g)      	 Seabridge’s rights in the Property are not
        subject to any prior agreement, encumbrance, burden or restriction, created
        by any act or instrument of Seabridge; that to the best of Seabridge’s
        knowledge, the Property is free from liens and encumbrances and other
        adverse claims by third parties; and that the Property is not burdened
        with any royalties, overriding royalties, net profits interests or payments
        on production except for those which are fully described in the Platoro
        Lease; 

	 
	 	 (h)      	 the execution, delivery and performance of this
        Agreement by Seabridge and the consummation of the transactions contemplated
        herein, including the transfer of an Interest in the Property to Romarco,
        does not and will not result in or constitute any of the following: (i)
        a default, breach or violation or an event that, with notice or lapse
        of time or both, would be a default, breach or violation of any of the
        terms, conditions or provisions of the articles or by-laws of Seabridge,
        or any lease, lien, permit, promissory note, security agreement, commitment,
        indenture, mortgage, hypothecation, deed of trust 

 - 3 - 

	 	  	or other agreement, instrument or arrangement
        to which Seabridge is a party or by which it or the Property is bound;
        (ii) an event that would permit any party to rescind any agreement or
        accelerate the maturity of any obligation of Seabridge related to the
        Property; (iii) the creation or imposition of any lien on the Property;
        or (iv) an event requiring the consent of any other party, including,
        without limitation, the shareholders of Seabridge; and 

	 
	 	 (i)     
      
	 to the best of Seabridge’s knowledge,
        there are no outstanding work orders or actions required to be taken relating
        to environmental matters, or any existing condition on the Property which
        could be the basis therefor, in respect to the Property or any operations
        thereon and that it has no knowledge of any other environmental issues
        affecting the Property. 

	 
	 1.2      	 Romarco represents and warrants to Seabridge
        that: 

	 
	 	 (a)      
	 Romarco is a corporation duly organized,
        validly existing, and in good standing under the laws of the Province
        of Ontario, Canada. 

	 
	 	 (b)      
	 Romarco is duly registered to do business
        in the State of Nevada. 

	 
	 	 (c)      
	 Romarco has the requisite corporate power
        and authority: 

	 
	 	 	 (i)     
      
	 to enter into this Agreement and all other agreements
        contemplated hereby, and 

	 
	 	 	 (ii)      
	 to carry out and perform its obligations under the
        terms and provisions of this Agreement and all agreements contemplated
        hereby. 

	 
	 	 (d)      
	 All requisite corporate action on the
        part of Romarco, and its officers and directors, necessary for the execution,
        delivery and performance of this Agreement and all other agreements of
        Romarco contemplated hereby, have been taken. This Agreement and all agreements
        and instruments contemplated hereby, when executed and delivered by Romarco,
        will be legal, valid, and binding obligations of Romarco enforceable against
        Romarco in accordance with their terms. The execution, delivery and performance
        of this Agreement will not violate any provision of law; any order of
        any court or other agency of government; or any provision of any indenture,
        agreement or other instrument to which Romarco is a party or by which
        its properties or assets are bound; or be in conflict with, result in
        a breach of, or constitute (with due notice and lapse of time) a default
        under any such indenture, agreement or other instrument. There is no law,
        rule or regulation, or any judgment, decree or order of any court or governmental
        authority binding on Romarco which would be contravened by the execution,
        delivery, performance or enforcement of this Agreement or any instrument
        or agreement required hereunder. However, no representation is made as
        to: 

	 
	 	 	 (i)      
	 the remedy of specific performance or other equitable
        remedies for the enforcement of this Agreement or any other agreement
        contemplated hereby; or 

	 
	 	 	 (ii)      
	 rights to indemnity under this Agreement for securities
        law liability. Additionally, this representation is limited by applicable
        bankruptcy, insolvency, moratorium, and other similar laws affecting generally
        the rights and remedies of creditors and secured parties; 

 - 4 - 

	 	 (e)      	 Romarco has obtained all consents, approvals, authorizations,
        declarations, or filings required by any federal, state, local, or other
        authority (except the TSX Venture Exchange), or any lenders, creditors,
        and other third parties in connection with the valid execution, delivery,
        and performance of this Agreement and the consummation of the transaction
        contemplated hereby. 

	 
	 	 (f)      	 All negotiations relative to this Agreement and
        the transactions contemplated hereby have been carried on by Romarco in
        such manner as not to give rise to any valid claim against Seabridge for
        a brokerage commission, finder’s fee or other fee or commission
        arising by reason of the transactions contemplated by this Agreement.
      

	 
	 	 (g)      	 On the date of this Agreement, 22,006,322 common
        shares of Romarco are issued and outstanding. Total shares outstanding
        on a fully diluted basis consist of 23,376,322 shares. When issued, the
        Share Payments (defined below) will be subject only to those limitations
        on trading imposed by the TSX Venture Exchange and applicable securities
        laws. Upon issue, the shares issued as Share Payments will be listed on
        the TSX Venture Exchange (or on such exchange on which the shares are
        listed at the time) and Romarco shall have complied with all of the requirements
        of that exchange for issuing the Share Payments. 

 1.3          The
  representations and warranties hereinbefore set out are conditions upon which
  each of Seabridge and Romarco has relied in entering into this Agreement and
  shall survive the exercise of the Option, and each of Seabridge and Romarco
  hereby forever indemnifies and saves the other harmless from all loss, damage,
  costs, actions and suits arising out of or in connection with any breach of
  any representation or warranty made by it and contained in this agreement. 

 2.           The
  Option 

 2.1          Grant
  of Option. Seabridge hereby irrevocably grants to Romarco
  the sole and exclusive option to earn a 60% legal and beneficial interest in
  the Property and all of Seabridge’s rights, licenses or permits relating
  thereto (the “Option”) on the terms set out herein. This
  Agreement shall be effective on the date of acceptance (the “Acceptance
  Date”) of Romarco entering into this Agreement by the TSX Venture
  Exchange, provided that if the Acceptance Date does not occur on or before September
  30, 2003 this Agreement and the Option shall be terminated and of no further
  force and effect. 

 2.2          Option
  Earn-In. To maintain the Option in good standing and earn
  its 60% interest in the Property, Romarco must: 

	 	 (a)      	 incur Expenditures (as defined in Section
        2.3) in the aggregate of two million five hundred thousand dollars ($2,500,000)
        on or prior to December 31, 2007 (the “Option Period”)
        with the following minimum cumulative expenditures: 

	 
	 	 	 (i)     
      
	 a total of $500,000 on or before December 31,
        2004; 

	 
	 	 	 (ii)      
	 a total of $1,000,000 on or before December
        31, 2005; 

	 
	 	 	 (iii)      
	 a total of $1,650,000 on or before December
        31, 2006; and 

	 
	 	 	 (iv)      
	 a total of $2,500,000 on or prior to December
        31, 2007; and 

 - 5 - 

	 	 (b)      
	 issue Seabridge one million five hundred
        thousand (1,500,000) fully paid and non- accessible common shares of Romarco
        (the “Share Payments”) on the following schedule: 

	 
	 	 	 (i)     
      
	 200,000 common shares on or before December 31,
        2003; 

	 
	 	 	 (ii)      
	 200,000 common shares on or before December 31,
        2004; 

	 
	 	 	 (iii)      
	 300,000 common shares on or before December 31,
        2005; 

	 
	 	 	 (iv)      
	 300,000 common shares on or before December 31,
        2006; and 

	 
	 	 	 (v)      
	 500,000 common shares on or before December 31,
        2007. 

	 
	 2.3      	 Expenditures. For the purposes
        of Section 2.2(a), the term “Expenditures” means: 

	 
	 	 (a)      
	 all Land Holding Fees (as defined in Section
        5.1); 

	 
	 	 (b)      
	 those costs incurred to perform work on
        the Property including, without limitation: 

	 
	 	 	 (i)      
	 payments and benefits to personnel engaged in the
        work program on the Property (including analysis and reports thereon)
        and such persons’ travelling expenses; 

	 
	 	 	 (ii)      
	 costs of rehabilitation, reclamation or remediation;
      

	 
	 	 	 (iii)      
	 disbursements for such third party services as drilling,
        assaying, geophysics and the like; 

	 
	 	 	 (iv)      
	 staking additional claims which become part of the
        Property as provided for herein; 

	 
	 	 	 (v)      
	 consulting fees and labour costs; 

	 
	 	 	 (vi)      
	 costs of supplies and making equipment available,
        and the transportation thereof; 

	 
	 	 	 (vii)      
	 costs of transporting personnel; 

	 
	 	 	 (viii)      
	 title work and the costs of recording same; and
      

	 
	 	 	 (ix)      
	 the cost of any acquisition included as part of
        the Property as provided for herein. 

	 
	 	 (c)      
	 an amount equal to 2.5% of the Expenditures
        set out in Section 2.3(a) and (b), in lieu of general and administrative
        expenses. 

 For greater certainty, except as set out in Section 2.3(c),
  Expenditures shall not include Romarco overheads such as executive or directors
  salaries, fees or expenses. 

 2.4          Upon
  satisfying the conditions of Section 2.2, Romarco will be deemed to have exercised
  the Option whereupon a 60% interest in the Property shall vest in Romarco (the
  “Option Vesting”). 

 - 6 - 

 3.          Termination
  of the Agreement 

 The initial US$500,000 in Expenditures outlined in Section
  2.2(a)(i) is a firm obligation of Romarco. All other Expenditures and Share
  Payments required to keep the Option in good standing as outlined in Section
  2.2 are optional at the sole discretion of Romarco and Romarco shall not be
  required to make any such Payment or incur any such Expenditures unless it wishes
  to keep the Option in good standing. This agreement may be terminated at any
  time by Romarco upon giving Seabridge 60 days written notice of termination,
  provided that such termination will not relieve Romarco of its obligation pursuant
  to Section 2.2(a)(i) . Until Option Vesting has occurred, this Agreement shall
  automatically terminate if Romarco fails to: 

	 	 (a)      	 pay the Land Holding Fees (as defined in Section
        5.1); 

	 
	 	 (b)      	 incur the Expenditures, or 

	 
	 	 (c)      	 satisfy the Share Payments, 

 when due and Romarco does not cure such failure within 30
  days after notice of such failure from Seabridge. Seabridge will provide Romarco
  with an invoice for all land holding costs, including advance royalty payments
  due under the Platoro Lease, no later than 45 days prior to their due date.
  Romarco will have 15 days to remit such costs to Seabridge. 

 4.          
  Information Disclosure 

 Upon execution of this Agreement and throughout its term,
  Seabridge will make available to Romarco all information in its possession or
  control relating to work done on or with respect to the Property. 

 5.          
  Rights and Obligations Prior to Option Vesting 

 5.1         Land
  Holding Fees. Until the Option Vesting occurs or this Agreement is terminated,
  Romarco shall be responsible for all obligations associated with the Platoro
  Lease including: 

	 	 (a)      	 paying advance royalty payments to Platoro West
        set out in the Platoro Lease; 

	 
	 	 (b)      	 making all required payments to the U.S. Bureau
        of Land Management in connection with the Property; 

	 
	 	 (c)      	 making required payments to Washoe County, Nevada,
        for intent-to-hold fees; 

 and otherwise maintaining the Property in good standing (but
  excluding, for greater certainty, the $250,000 payment contemplated in Paragraph
  5 of the Platoro Lease, as amended by Amending Agreement dated effective September
  8, 2003) (the “Land Holding Fees”), and any costs incurred
  in connection therewith shall be included as Expenditures pursuant to Section
  2.3. Until Option Vesting occurs, neither party shall be entitled to create
  any liens or encumbrances against title to the Property or to alter the terms
  of any agreements affecting title to the Property including, without limitation,
  the Platoro Lease, without the prior written approval of the other party. 

 5.2          Work
  Standards. All work done by Romarco shall be done in accordance with good
  mining, exploration and development practice and in compliance with all applicable
  laws and regulations including all reclamation obligations. 

 - 7 - 

 5.3         
  Indemnity. Until the Option Vesting occurs Romarco shall indemnify and
  save harmless Seabridge from and against all suits, claims, demands, losses
  and expenses that directly arise as a result of Romarco’s activities on
  the Property. 

 5.4          Annual
  Reports. Until the Option Vesting occurs, Romarco shall provide Seabridge
  with annual reports indicating any results and interpretations obtained or received
  in connection with exploration or development work on the Property and an accounting
  of expenditures which were incurred. The annual report will be submitted to
  Seabridge on or before 90 days following the anniversary of the Acceptance Date
  of each successive year. Notwithstanding such disclosure by Romarco, it shall
  not have any liability or responsibility to Seabridge in connection with any
  reports or results that it provides to Seabridge, or any information contained
  therein, and Seabridge agrees that it will rely on its own appraisals and interpretations
  related thereto.

 5.5          Site
  Visits. Until the Option Vesting occurs, Seabridge may visit the Property
  and have access to all exploration results from the Property, provided reasonable
  notice is given to Romarco and the costs of any such visits shall be borne by
  Seabridge and Romarco shall be held blameless and shall be indemnified by Seabridge
  for any claim or liability arising out of any actions by or the presence of
  Seabridge or its employees on the Property. Seabridge acknowledges and agrees
  that Romarco shall not bear any responsibility or liability for any use of any
  information so obtained by Seabridge or as to the accuracy or completeness of
  such information. 

 5.6         
  Exclusive Possession. Until the Option Vesting occurs, Romarco will be
  the operator of the Property and in its sole discretion shall be responsible
  for proposing, carrying out and administering exploration and development work
  upon the Property and shall have exclusive charge of all operations on the Property.
  Romarco shall have full rights of access to and quiet and exclusive possession
  of the Property and have the exclusive right to conduct exploration and development
  work on the Property, with the full right to remove mineral samples and ores
  for the purpose of assays and tests, and to have such buildings, machinery,
  equipment and supplies on the Property as it deems necessary. 

 5.7         Dropping
  Claims. Until the Option Vesting occurs, and upon providing Seabridge with
  notice to that effect, Romarco may relinquish to Seabridge one or more of the
  claims comprising the Property, provided that if notice of relinquishment of
  claims is provided between June 30 and August 31, in any year, Romarco shall
  be responsible for paying the filing fees and claim maintenance costs to keep
  such claims in good standing for the next year, whereupon Romarco shall have
  no further obligations with respect to such claims. In the event that at any
  time, until the Option Vesting occurs, Romarco has dropped or transferred to
  Seabridge the claims which comprise the whole of the Property, then this Agreement
  shall thereupon terminate and Romarco shall have no further obligations or responsibilities
  in respect of the Property or to Seabridge. If Romarco wishes to withdraw from
  this Agreement prior to the Option Vesting occurring or wishes to drop or abandon
  any claims comprising the Property in accordance with the terms hereof, it must
  complete all its cleanup, rehabilitation and reclamation obligations with respect
  to any work it has conducted hereunder with respect to the claims comprising
  the Property or the claims to be dropped, in accordance with all applicable
  regulations. 

 5.8          Assignment.
  During the Option, neither party will assign, dispose or otherwise transfer
  any interest in the Agreement or in the Property to any third party except with
  the consent of the other party, such consent not to be unreasonably withheld.

 - 8 - 

 6.           The Joint
  Venture 

 6.1          Joint
  Venture Agreement. Upon the Option Vesting occurring, a joint venture agreement
  in the form attached hereto as Schedule “B” will be deemed to have
  been entered into between Seabridge and Romarco, provided that the parties may,
  by mutual consent, enter into such other form of agreement as is acceptable
  to both parties.

 6.2          Increase
  in Interest. Upon the Option Vesting occurring, Romarco shall have a one-time
  further option to increase its interest in the Property from 60% to 65% by agreeing
  to fund 100% of the costs to complete a Feasibility Study (as defined in Section
  6.3) within three (3) years of electing to do so as herein provided. Within
  90 days of Option Vesting, Romarco shall notify Seabridge in writing (the “Notice
  Date”) whether it elects either (i) to complete a Feasibility Study
  within three (3) years of the Notice Date; or (ii) remain at a 60% interest.

 6.3          Feasibility
  Study. For the purposes of Paragraph 6.2, a “Feasibility Study”
  means a study in a form customarily required by third-party financing organizations
  showing the feasibility of placing the Property into production, in such form
  and detail and using such assumption as to mineral prices customarily used in
  determining the viability of mining projects such as the Property and including
  a reasonable assessment of the mineable mineral reserves and their amenability
  to milling, a complete description of the work, equipment and supplies required
  to bring the Property into production and the estimated cost thereof, a description
  of the mining methods to be employed and a financial appraisal of the proposed
  operations supported by explanations of the following information: 

	 	 (a)      	 a description of that part of the Property to be
        covered by the proposed mine, 

	 
	 	 (b)      	 the estimated recoverable reserves of minerals and
        the estimated composition and content thereof, including the effect of
        grade, dilution and impurities, 

	 
	 	 (c)      	 the proposed procedure for development, mining and
        production, 

	 
	 	 (d)      	 results of milling amenability tests (if any), 

	 
	 	 (e)      	 the nature and extent of the facilities, if any,
        proposed to be acquired which may include mill facilities, if the size,
        extent and location of the ore body makes such mill facilities necessary
        or desirable, in which event the study shall also include a preliminary
        design for such mill, and the proposed mill site location, if any, or
        appropriate provisions for custom milling facilities, 

	 
	 	 (f)      	 the total costs, including capital budget, which
        are reasonably required to purchase, construct and install all structures,
        machinery and equipment required for the proposed mine, including a schedule
        of timing of such requirements, 

	 
	 	 (g)      	 the results of all environmental impact studies
        for the Property and costs of such studies, 

	 
	 	 (h)      	 the period in which it is proposed the Property
        shall be brought to production, 

	 
	 	 (i)      	 working capital requirements for the initial four
        (4) months of operation of the Property as a mine or such longer period
        as may be reasonably justified in the circumstances by the party doing
        the study, 

 - 9 - 

	 	 (j)      	 estimates of shutdown and reclamation costs, and 
	 
	 	 (k)      	 the net present value of the Property. 

 Furthermore, during the period Romarco has elected to complete
  a Feasibility Study, Romarco shall be responsible for all Land Holding Fees,
  and any costs incurred in connection therewith. 

 If Romarco fails to complete the Feasibility Study within
  three (3) years of the Notice Date, or elects not to continue with its efforts
  to complete such a study and so advises Seabridge in writing, Romarco shall
  have forfeited its right to increase its Interest to 65% and Romarco’s
  interest in the Joint Venture will remain at 60% notwithstanding any expenditures
  Romarco may have made toward a Feasibility Study. 

 6.4          Joint
  Venture Interests. Upon formation of the Joint Venture, Romarco and Seabridge
  in accordance with their respective Interests will thereafter share all expenditures
  and obligations relating to the Property in accordance with their respective
  interests, all as set out in the Joint Venture Agreement. 

 GENERAL

 7.          
  Right of First Offer 

 Each party shall have a right of first offer on any proposed
  transfer, assignment or other disposition (“Sell”) by the other
  party of all or any portion of the interest in this Agreement. A party that
  wishes to Sell all or any portion of its interest in this Agreement shall first
  offer to Sell same to the other party for a price and on terms established by
  the party proposing to Sell. If the other party does not accept such offer within
  30 days, the party proposing to Sell shall, for a period of 90 days, be entitled
  to Sell its offered interest in this Agreement, as the case may be, to a third
  party for the same or greater price and on the same terms or terms no more favourable
  to the third party. 

 8.           Area
  of Interest 

 During the term of this Agreement, should either party acquire
  and/or stake claims, exploration permits, mining leases or any other form of
  mineral rights or interest therein (“Additional Property”)
  within an area of interest as lying within the Property and the area lying within
  two (2) miles of the outer boundaries of the Property (“Area of Interest”)
  the Additional Property shall immediately become part of the Property. If no
  Joint Venture is formed hereunder, this Area of Interest obligation shall terminate
  when the Agreement terminates. 

 9.           Confidentiality
  and Press Releases 

 Seabridge agrees that the entering into of this Agreement
  and all data and information provided to or received by Seabridge from Romarco
  with respect to the Property shall be treated as confidential. Seabridge shall
  not disclose such information to third parties without obtaining the prior written
  consent of Romarco, such consent not to be unreasonably withheld, unless law
  or regulatory authority having jurisdiction requires the disclosure. Neither
  party shall make any publication or declaration or publicly divulge any information
  relating to the Property or this Agreement without obtaining the prior consent
  in writing from the other party. Such consent shall not be unreasonably withheld
  and cannot be withheld where applicable law requires public disclosure of such
  information. Each party shall provide no less than 24 hours advance notice to
  the other party to review any press release or public disclosure that it proposes
  with respect to this Agreement or the Property. 

 - 10 - 

 10.          Force Majeure

 No party hereto shall be liable to the others and no party
  hereto shall be deemed in default under this Agreement for any failure or delay
  to perform any of its obligations within the times specified under this Agreement
  if such failure or delay is caused by or arises out of any act not within the
  control of the party, excluding lack of funds but including, without limitation,
  acts of God, strikes, lockouts, or other industrial disputes, acts of the public
  enemy, riots, fire, storm, flood, explosion, government restriction, aboriginal
  land claims, failure to obtain any approvals required from regulatory authorities,
  including environmental protection agencies, unavailability of equipment, interference
  of third party specific interests groups or other causes whether of the kind
  enumerated above or otherwise which is not reasonably within the control of
  the party. No right of a party shall be affected for failure or delay of the
  party to meet any condition of this Agreement, which failure or delay is caused
  by one of the events above referred to, and all times provided for in this Agreement
  shall be extended for a period commensurate with the period of the delay, and
  so far as possible the party affected will take all reasonable steps to remedy
  the delay caused by the events above referred to provided, however, that nothing
  contained in this section shall require any party to settle any industrial dispute
  or to test the constitutionality of any law enacted by any State or the Federal
  Government. Any party relying on the provisions of this section shall forthwith
  give notice to the other party of the commencement of such event and of its
  termination. 

 11.         Entire
  Agreement 

 This Agreement including Schedules “A” and “B”
  hereto, constitutes the entire Agreement between Seabridge and Romarco pertaining
  to the Property and supersedes all prior agreements, understandings, negotiations
  and discussions, whether oral or written between Seabridge and Romarco, and
  there are no warranties, representations or other agreements between Seabridge
  and Romarco in connection with the Property except as set forth herein. 

 12.          Headings
  

 Headings in this Agreement are for reference and convenience
  only with no legal significance and do not expand, amend, alter or influence
  in any way the substantive provisions of the sections to which they refer. 

 13.          Currency

 References in this Agreement to monetary amounts are expressed
  in United States dollars. 

 14.          Further
  Assurances and Agreements 

 Each of the parties to this Agreement shall take all such
  further steps and execute all such further and other documentation as may be
  necessary in order to more fully give effect to the provisions of this Agreement.

 15.          Counterparts

 This Agreement may be executed in one or more counterparts,
  or by facsimile, each of which shall be deemed to be an original and all of
  which shall constitute one and the same document. 

 - 11 - 

 16.          Governing
  Law 

 This Agreement shall be governed by and construed in accordance
  with the laws of Ontario. 

 IN WITNESS WHEREOF the parties have executed this agreement
  as of the date first written above. 

	 ROMARCO MINERALS INC.  	 	 SEABRIDGE GOLD INC.  
	 	  	 	 	 
	 	  	 	 	 
	By:  	 
    	 	By:  	 
    
	 	 Diane Garrett  	 	 	 Rudi Fronk  
	 	 President and CEO  	 	 	 President and CEO  

 SCHEDULE A

 

 The Property 

 

 (Mining Lease Agreement and amendments thereto Between Seabridge
  and Platoro)

 

 

 SCHEDULE B

 JOINT VENTURE AGREEMENTFiled by Automated Filing Services Inc. (604) 609-0244 - Romarco Minerals U.S. Inc. - Exhibit 4.3

 PRO RATA RIGHT AGREEMENT

This Agreement is made as of September 9, 2003 

BETWEEN: 

ROMARCO MINERALS INC., a corporation
  incorporated under the laws of Ontario and having an address of Suite 1500,
  885 West Georgia Street, Vancouver, British Columbia V6C 3E8, facsimile no.:
  (604) 688-9274 

(“Romarco”) 

AND: 

SEABRIDGE GOLD INC., a corporation
  incorporated under the laws of Canada and having an address of 172 King Street
  East, 3rd Floor, Toronto, Ontario, M5A 1J3, facsimile no.: (416)
  367-2711 

(“Seabridge”) 

WHEREAS: 

	 A.      	 Seabridge and Romarco have entered into an option
        agreement dated September _____ , 2003 (the “Option Agreement”)
        pursuant to which Romarco agreed to grant to Seabridge shares in the capital
        of Romarco in certain circumstances; and 

	 
	 B.      	 Seabridge and Romarco have agreed that in the event
        of any future financing of Romarco, Seabridge shall have the right, but
        not the obligation, to maintain its pro rata interest in Romarco. 

 NOW THEREFORE in consideration of the mutual promises
  made to each other in this Agreement, Seabridge and Romarco (each a “Party”
  and collectively the “Parties”) hereby agree as follows:

 1.            Grant
  of Right. Romarco grants to Seabridge the right, but not the obligation,
  to participate in any Financing by subscribing for that number of Securities
  which would result in Seabridge holding the same percentage interest in Romarco
  (on a fully-diluted basis) after such Financing, as it holds prior to such Financing.
  For the purposes of this Agreement, “Financing” means any offering
  of Securities by Romarco, either to the public or on a private placement basis,
  for cash subscription proceeds, but shall not include any issuance of Securities
  pursuant to: (a) any stock option plan, or other program providing for the grant
  of stock options to the directors, officers, employees or consultants of Romarco;
  (b) a merger, amalgamation, reorganization or similar transaction; or (c) an
  acquisition of a property or any other asset or the entering into of any strategic
  or other agreement where the proceeds from such issuance are in a form other
  than cash. For the purposes of this Agreement “Securities” means
  shares in the capital stock of Romarco or any other security convertible into
  shares in the capital stock of Romarco. 

 2.            Exercise
  of Right. Romarco shall be deemed to have satisfied its obligation to Seabridge
  by providing (or causing any agent, underwriter or other intermediary to provide)
  Seabridge with the opportunity to subscribe for Securities on the same terms
  and in the same time frame as any other purchaser of Securities under the Financing.

 3.            Termination
  of Agreement. This Agreement shall terminate on the earlier of: (a) the
  termination or expiry of the Option Agreement; and (b) in the event that Romarco
  exercises the option granted 

 - 2 - 

 pursuant to the Option Agreement, the earlier of: (i) the
  termination of the Joint Venture agreement resulting therefrom; and (ii) the
  point in time when Seabridge’s interest under the joint venture falls
  to less than 10%.

 4.            Securities
  and Exchange Compliance. The rights granted under this Agreement are subject
  to: (a) satisfaction of all conditions and approvals of any exchange on which
  the shares of Romarco are listed from time to time; and (b) any applicable securities
  laws. 

 5.            Assignment.
  Neither party will assign, dispose or otherwise transfer any interest in this
  Agreement to any third party except with the consent of the other party, which
  consent may be unreasonably withheld. 

 6.            Entire
  Agreement. This Agreement constitutes the entire Agreement between Seabridge
  and Romarco pertaining to the subject matter hereof and supersedes all prior
  agreements, understandings, negotiations and discussions, whether oral or written
  between Seabridge and Romarco, and there are no warranties, representations
  or other agreements between Seabridge and Romarco in connection with the the
  subject matter hereof except as set forth herein. 

 7.            Governing
  Law. This Agreement shall be governed by and construed in accordance with
  the laws of Ontario. 

 8.            Counterparts.
  This Agreement may be executed in one or more counterparts, or by facsimile,
  each of which shall be deemed to be an original and all of which shall constitute
  one and the same document. 

IN WITNESS WHEREOF the parties have executed this agreement as of the date first written above. 

	 ROMARCO MINERALS INC.  	 	 SEABRIDGE GOLD INC.  
	 	  	 	 	 
	 	  	 	 	 
	By:  	  	 	By:  	  
	 	 Diane Garrett  	 	 	 Rudi Fronk  
	 	 President and CEO  	 	 	 President and CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]