Document:

wmtn_ex1025.htm

Exhibit 10.25

 

RAVEN GOLD A LASKA INC.

c/o Suite 2300 - 1 177 West Hasting St.

Vancouver, BC V6E 2KJ Canada 

 

February 1 2, 2014

 

Via Email and Fax

 

Terra Gold Corporation

Attention:  Greg Schifrin, President and CFO 

120 East Lake St., Suite 40 1

Sandpoint, ID 83864

 

Re:           Letter Agreement

 

This Letter Agreement ("Letter Agreement") is made as of February 12, 2014, by and between Raven Gold Alaska lnc, an Alaska corporation ("Raven") and Terra Gold Corporation. an Alaska corporation ("Terra Gold"), with respect to the sale by Raven to Terra Gold of Raven's entire interest in the mining claims and other assets that make up the Terra project, located in the southwest Alaska Range, 1 30 miles west-northwest of Anchorage, Alaska ("Terra Project"), that is U1e subject of that certain Terra Gold Project Exploration, Development and Mine Operating Agreement dated September 15, 2010 (the "Terra Gold JV Agreement") between Raven and Terra Gold.

Raven and Terra Gold hereby agree as follows:

 

	I. 	Purpose of Letter Agreement. Terra Gold desires to acquire I 00% of Raven's interest in the Terra Project. including not only Raven's interest in the Claims (as defined in Section 2) but also Raven 's interest in all other Assets (as such term is defined in the Terra Gold N Agreement), and Raven is willing to sell its entire interest in the Terra Project (including both the Claims and the other Assets) to Terra Gold upon the terms set forth in this Letter Agreement.
	 	 
	 	Property Subject to the Joint Venture. The Terra Project is a mineral exploration prospect located on an Alaska State claim block consisting of 344 Alaska state mining claims (the "Claims") covering approximately 55,040 acres (as more specifically set out in Schedule A). Raven represents and warrants to Terra Gold that:
	 	 
	 	(a)	Raven is the sole registered and legal holder of 339 Claims ("Raven Claims"), subject to the Terra Gold JV Agreement, and the Raven Claims are presently in good standing with respect to:
	 	 
	 	 	(i)	the doing and filing of assessment work for the assessment year ended September l , 2013 (subject to the acknowledgement below), and
	 	 

 

  

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Terra Gold Corporation 

February 12, 2014

Page 2

	 	 	(ii)	
payment of applicable claim rental fees for the rental year beginning on September I , 2013, and ending September l , 2014; and

	 	 
	 	(b)	
As of the effective date of the Porterfield Lease (as defined below in Section 8). Ben Porterfield was the sole registered and legal holder of 5 Claims  ("Porterfield Claims"), subject to the Porterfield Lease (under which Raven is the sole lessee, subject to the Terra Gold JV Agreement), and The Porterfield Claims are, to the knowledge of Raven, presently in good standing with respect to:

	 	 
	 	 	(i)	
the  doing  and  filing  of assessment  work  for  the  assessment  year ended September  I.2013 (subject to the acknowledgement  below), and

	 	 	 	 
	 	 	(ii)	

payment of applicable claim rental fees for the rental year beginning on September  I.2013, and ending September  I , 2014.

	 	 	 	 
	 	Terra Gold acknowledges that the assessment work filings for the assessment year ended September I , 2013 were prepared and filed by Terra Gold with respect to work carried out on the Claims by Terra Gold (or its affiliates or contractors) during said assessment work yea, and Raven makes no confirmation, representation or warranty with respect to the validity of such filings or of the work reported therein for assessment work purposes.
	 	 	 	 
	Raven further represents and warrants to Terra Gold as follows respecting the Claims:
	 	 	 	 
	 	(a)	

the Claims are subject to the title exceptions and encumbrances set forth on Exhibit A attached to the form of Deed, Assignment and Bill of Sale attached hereto as Exhibit I ; and

	 	 	 	 
	 	(b)	

except as set forth in said Exhibit A, the Claims are free and clear of any and all liens, mortgages, deeds of trust, security interests, encumbrances, or other interests of third parties arising by, through or under Raven.

	 	 	 	 
	 	

Raven makes no warranty respecting either (a) the existence of a discovery or any other mineralization on any of the Claims or (b) the existence of legal or practical access to the Claims.

	 	 	 	 
	3.	Sale of Raven's Interest in the Terra Project
	 	 	 	 
	 	(a)	

Following the execution of this Letter Agreement by Raven and Terra Gold and the receipt of Ben Porterfield's written consent to this transaction as provided in Section 8, and upon the payment by Terra Gold to Raven of the consideration set forth in Section 3(b), Raven's entire interest in the Terra Project, including the Terra Project Assets, shall be transferred and assigned to Terra Gold by the execution by the parties and the delivery by Raven to Terra Gold of a Deed, Assignment, and Bill of Sale in the form attached hereto as Exhibit l, and the Terra Gold JV Agreement between the parties shall term mate and be of no further force and effect.

 

  

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Terra Gold Corporation 

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	 	(b)	The consideration for the sale of Ra\ en's interest in the Terra Project and the Terra Project Assets, and for the termination of the Terra Gold JV Agreement shall be as follows (the "Consideration"):
	 	 	 	 
	 	 	(i)	

USO S 1,800,000 payable by Terra Gold (or an affiliate of Terra Gold) to the designated bank account of Raven set forth in Section  1 I  below by wire transfer on the date this Letter Agreement  is signed by both parties; and

	 	 	 	 
	 	 	(ii)	

the delivery by Terra Gold to Raven of 200,000 shares {free trading to the extent possible) of the common stock of WestMountain Gold, Inc.

	 	 	 	 
	 	(c)	

Following the execution and delivery of the Deed, Assignment and Bill of Sale in the form attached hereto as Exhibit l, Terra Gold shall have 45 days in which to confirm to its satisfaction that (i) the Claims are in good standing (other than as to the existence of a discovery on any of the Claims) and (ii) record title to the Claims is as represented and warranted by Raven. If Terra Gold ad vise Raven of any material potential defects identified during said 45-day period, Terra Gold shall have the right to elect at that time to terminate and unwind this Letter Agreement, whereupon the parties shall be restored to their respective positions as if this Letter Agreement had never been executed. If Terra Gold elects not to to  terminate and unwind  this Letter Agreement  as provided  above, this Letter Agreement shall be deemed  fully performed  and concluded. Nothing here in shall affect Terra Gold's ril?hts to pursue damages  for breach of any warranty of title

set forth in the Deed, Assignment, and Bill of Sale executed and delivered as provided herein.

	 	 	 	 
	4.	

Satisfaction and Release. Raven hereby acknowledges and agrees that upon payment of the Consideration, no further payments shall be due to Raven from Terra Gold under the Terra Gold Agreement, and each party shall be fully released from its obligations to each other or affiliates of each other under the Terra Gold JV Agreement. Without limiting the generality of the foregoing sentence, no additional royalty for any past mining activity by Terra Gold up to the date of this Letter Agreement is due from Terra Gold to Raven, and Raven hereby acknowledges that it has received all royalty payments to which i t is due as of the date of this Letter Agreement.

 

 

  

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Terra Gold Corporation 

February 12, 2014

Page 4

 

	 	 	 	 
	5.	

Termination of Terra Gold JV Agreement. Assuming payment of the Consideration in accordance with Section 3(b) above, the Terra Gold JV Agreement shall terminate on the date hereof.

	 	 	 	 
	6.	

Execution of Further Documents and Agreements. To the extent necessary to carry out the intent of this Letter Agreement and record the transfer and sale of Raven's interest in the Terra Project and the Terra Project Assets. Raven and Terra agree to proceed in mutual good faith and with best efforts to prepare and execute any and all documents and agreements necessary. However, assuming payment of the Consideration is made in accordance with Section 3(b), the failure of the parties to execute any such documents or agreements shall not affect Terra Gold's ownership of Raven's interest in the Terra Project, the Claims or any other Assets. from the date of this Letter Agreement forward nor shall the Terra Gold N Agreement be of further force and effect after the date hereof.

	 	 	 	 
	7.	

Letter of Intent. For clarification only, the parties hereby acknowledge and confirm that the Letter of Intent dated as of February 19. 2013 (the 'Letter of Intent) between the parties with respect to the sale of the Raven JV Interest has expired is of no further force and effect, and has been superseded by this Letter Agreement.

	 	 	 	 
	8.	

Porterfield Royalty Payments. Pursuant to the lease agreement dated March 22, 2005 between Ben Porterfield ("Porterfield") and AngloGold Ashanti (USA) Exploration Inc. ("AngloGold"), as assigned by AngloGold to Talon Gold Alaska, Inc. ("Talon Gold") and further assigned by Talon Gold to Raven, and as amended by an agreement dated January 7, 201 1 ("Porterfield Lease"), Porterfield has leased the Porterfield Claims to Raven and maintains certain rights therein including the right to receive a net smelter return royalty on certain production from the Terra Project as set forth in the Porterfield Lease. Raven has the right to purchase a portion of such royalty as set forth in the Porterfield Lease. Raven's entire rights in, under, and respecting the Porterfield Lease shall be transferred to Terra Gold as part of the Assets of the Terra Project, subject to the consent by Porterfield to such transfer. to the extent necessary or required by the Porterfield Lease, which consent shall be obtained within 10 days of the date of this Letter Agreement. If such consent is not obtained within the foregoing time period, either party may elect to terminate this Letter Agreement, whereupon the parties shall be restored to their respective positions as if this Letter Agreement had never been executed.

	 	 	 	 
	9.	

Representations and Warranties.  Each party represents to the other that:

	 	 	 	 
	 	(a)	

It is a corporation duly organized, validly existing, and in good standing under the laws of the State of Alaska; it has all the requisite corporate power and authority to carry on its business as i t is now being conducted and to own or lease and operate its properties as, and in the places where, such business now is conducted and where such properties now are owned or leased and operated; it has all the requisite corporate power and authority to execute and deliver this Letter Agreement; it has all the requisite corporate power and authority to perform i ts obligations under this Letter Agreement; and the execution, delivery and performance of this Letter Agreement have been duly authorized by alJ necessary corporate action.

 

  

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Terra Gold Corporation 

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	 	(b)	

This Letter Agreement has been duly executed and delivered and constitutes a valid and binding obligation of such party, enforceable against such party in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, and other laws affecting creditors' rights generally and to general principles of equity.

	 	 	 	 
	 	(c)	The execution, delivery and performance of this Letter Agreement by such party and the consummation by such of the transactions contemplated hereby and thereby do not and will not result in any conflict with or breach or violation of or default under such party's articles of incorporation or bylaws.
	 	 	 	 
	 	(d)	

No action, suit, proceeding, or governmental investigation is pending or to the knowledge of such party, threatened against such party which (a) challenges or may challenge the validity of this Letter Agreement or (b) seeks to enjoin or otherwise restrain the transactions contemplated herein . No order, judgment, injunction or decree of any governmental authority is outstanding against such party or any of the Claims and/or Assets that, individually or in the aggregate, would have any effect referred to in the foregoing clauses (a) or (b).

	 	 	 	 
	 	(e)	

No investment banker, financial advisor, broker, or finder has acted for or on behalf of such party or any affiliate of such party in connection with this Letter Agreement or the transactions contemplated by this Letter Agreement. No investment banker, financial advisor, broker, or finder is entitled to any brokerage or finder's fee, or to any commission, based in any way on agreements, arrangements or understandings made by or on behalf of such party or any affiliate of such party for which either party has or will have any liabilities or obligations (contingent or otherwise).

	 	 	 	 
	10.	

Expenses Terra Gold and Raven will each pay their own respective expenses incurred in connection with this Letter Agreement.

 

  

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Terra Gold Corporation 

February 12, 2014

Page 6

 

	 	 	 	 
	11.	

Bank Account. The cash portion of the Consideration set forth in Section 3(b) shall be paid to Raven  at its bank account as follows:

	 	 	 	 
	12.	

Notice Any notice or other communication required or contemplated under this Letter  Agreement  to be given by one party to the other shall be personally delivered, faxed or mailed by prepaid registered post to the party to receive same at the undernoted address, namely:

	 	 	 	 
	 	(a)	

If to Raven Gold Alaska:

	 	 	 	 
	 	 	

Raven Gold Alaska Inc.

c/o Suite :2300- 1 177 West Hasting St.

Vancouver, British Columbia V6E 2K3 Canada Attention: Jeffrey Pontius. CEO

Fax Number: 1-604-408-7499

	 	 	 	 
	 	(b)	

If to Terra Gold Corporation

	 	 	 	 
	 	 	

Terra Gold Corporation

c/o 120 East Lake St, Suite 401

Sandpoint, Idaho 83864

Attention : Greg Schifrin, President and CFO Fax Number: 208-906-8621

	 	 	 	 
	13.	

Miscellaneous   Provisions.

	 	 	 	 
	 	(a)	

This Letter Agreement will be governed by and interpreted under the laws of the State of Alaska.

	 	 	 	 
	 	(b)	

All references in this Letter of Agreement to dollar amounts are to United States currency.

	 	 	 	 
	 	(c)	

This Letter Agreement may be executed in any number of counterparts and by facsimile transmission with the same effect as if all parties hereto had signed the same document. AJJ counterparts will be construed together and constitute one and the same document. Notwithstanding the foregoing, at least one counterpart of the  Deed, Assignment, and Bill of Sale shall be executed by all parties and recorded by Terra Gold after Porterfield 's written consent has been obtained by Terra Gold and provided to Raven.

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If you are in agreement with the foregoing, please execute this Letter Agreement in the space provided below and return a signed copy to us.

 

	 	

RAVEN GOLD A LASKA INC.,

	 
	 	

an Alaska corporation

	 
	 	 	 	 
	 	
By: 

	 	 
	 	Name:	

Jeff Pontius, CEO

	 
	 	 	 	 
	 	 	 	 
	 	

TERRA GOLD CORPORATION,

	 
	 	

an Alaska Corporation

	 
	 	 	 	 
	 	By:	 	 
	 	Name:	

Gregory Schifrin

	 

 

Attachments:

Schedule A: Claims

Exhibit I: Deed, Assignment, and Bill of Sale

 

 7wmtn_ex1026.htm

Exhibit 10.26

THIS SECURED CONVERTIBLE PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE HOLDER SATISFACTORY TO THE PAYOR THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.

CONVERTIBLE PROMISSORY NOTE

 

	$1,000,000.00	December 17, 2013
	 	London, UK

 

FOR VALUE RECEIVED, WestMountain Gold, Inc., a Colorado corporation formerly known as WestMountain Index Advisor, Inc. (“Payor”), promises to pay to Guiseppe Dessi, an “accredited investor” as defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (“Holder”) the principal sum of One Million Dollars ($1,000,000.00), with interest on the outstanding principal amount at the rate of eight percent (8%) per annum.  Interest shall commence with the date hereof and shall continue to accrue on the outstanding principal until paid in full.  Interest shall be computed on the basis of a year of three hundred sixty five (365) days for the actual number of days elapsed.  All principal and accrued interest on this note (the “Note”) shall be due and payable on December 16, 2014 (the “Maturity Date”).

 

1. All payments of interest and principal shall be in lawful money of the United States of America in cash, by certified check, or wire transfer.  All payments shall be applied first to accrued expenses due under this Note, next to interest and thereafter to principal.

 

2. If action is instituted to collect this Note, Payor promises to pay all costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred in connection with such action.

 

3. The outstanding balance of any amount owing under this Note that is not paid when due under the terms of this Note shall bear interest at fifteen percent (15%) per annum.

 

4. All payments of principal and interest shall be made in cash, certified check or by wire transfer to Holder at 55 Grosvenor St. London, UK W1K3HY or at such other place as Holder may designate in writing.

 

5. Payor shall make all payments under this Note without defense, set-off or counterclaim on its part.

 

6. The occurrence of any one or more of the following shall constitute an “Event of Default” hereunder:

 

a) Payor fails to substantially complete a private-placement offering of combined debt and equity of at least Three Million Dollars ($3,000,000), inclusive of Holder’s conversion of the note and equity investment described in Section 10 below, in accordance with the general terms set forth on the attached Addendum A (the “Debt-Equity Financing”) before March 31, 2014;

 

b) Payor fails to pay timely any of the principal amount due under this Note, or any other agreement with Holder, on the date the same becomes due and payable or any accrued interest or other amounts due under this Note on the date the same becomes due and payable;

 

c) Payor fails to use the necessary principal amount of this Note to buyout its joint venture partner in the Terra Gold Project and acquire one hundred percent (100%) ownership in the Terra Project by January 15, 2014;

 

d) Should any representation or warranty of Payor made herein, or in any other agreement, statement, certificate, or communication given to Holder be false or misleading in any material respect when made or become false or misleading in any material respect after the date of this Note;

 

e) Payor (i) files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect; (ii) makes any assignment for the benefit of creditors or takes any corporate action in furtherance of any of the foregoing; (iii) applies for or consents to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property; (iv) is unable, or admits in writing its inability, to pay its debts generally as they mature, (v) is dissolved or liquidated; (vi) becomes insolvent (as such term may be defined or interpreted under any applicable statute); or (vii) takes any action for the purpose of effecting any of the foregoing;

 

  

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f) An involuntary petition is filed against Payor (unless such petition is dismissed or discharged within thirty (30) days under any bankruptcy statute now or hereafter in effect) or a custodian, receiver, trustee, assignee for the benefit of creditors (or other similar official) is appointed to take possession, custody or control of any property of Payor;

 

g) The sale, conveyance, or disposition of all or substantially all of the assets of the Payor, the effectuation by the Payor of a transaction or series of related transactions in which more than 50% of the voting power of the Payor is disposed of, or the consolidation, merger or other business combination of the Payor with or into any other Person (as defined below) or Persons when, the Payor is not the survivor.  "Person" shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization; and

 

h) Any cessation of operations by Payor.

 

7. Upon the occurrence or existence of any Event of Default, immediately and without notice, all outstanding obligations payable by Holder hereunder shall automatically become immediately due and payable.  In addition to (and not in lieu of) the foregoing remedies, upon the occurrence or existence of any Event of Default, Holder may exercise all other rights, powers or remedies granted to it under this Note or otherwise permitted to it by law, either by suit in equity or by action at law, or both, all such remedies being cumulative.

 

8. Notwithstanding any other provision of this Note, interest under this note shall not exceed the maximum rate permitted by law; and if any amount is paid under this note as interest in excess of such maximum rate, then the amount so paid will not constitute interest but will constitute a prepayment on account of the principal amount of this note.  If at any time the interest rate under this Note would, but for the provision of the preceding sentence, exceed the maximum rate permitted by law, then the outstanding principal balance of this Note shall, on demand by the holder of this Note, become and be due and payable.

 

9. Payor unconditionally waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and all other notices or demands relative to this Note.

 

10. Holder covenants and agrees that, prior to the conclusion of the Debt-Equity Financing, it shall convert all amounts due under the terms of this Note into the debt portion of the Debt-Equity Financing on a dollar for dollar basis (the “Note Conversion”).  In addition, Holder covenants and agrees that, concurrently with the Note Conversion, Holder will invest at least One Million Dollars (USD $1,000,000) in the equity portion of the Debt-Equity Financing.

 

11. Payor agrees to pay on demand all expenses (including, without limitation, legal fees and disbursements) incurred in connection with the negotiation and preparation of this note and any documents in connection with this note.

 

12. No failure by Holder to exercise, or delay by Holder in exercising, any right or remedy hereunder shall operate as a waiver thereof or of any other right or remedy and no single or partial exercise of any right or remedy shall preclude any other or further exercise thereof or of any other right or remedy.  Holder may not waive any of its rights under this Note except by an instrument in writing signed by it.

 

13. If any provision of this Note shall be judicially determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

14. This Note shall be governed by and construed under the laws of the State of Colorado, as applied to agreements among Colorado residents made and to be performed entirely within the State of Colorado, without giving effect to conflicts of laws principles that would result in the application of any law other than Colorado law.  Exclusive venue for all actions arising out of this Note shall be in the Colorado state district court in and for the City and County of Denver, Colorado.

 

15. In addition to the obligations recited herein and contemplated to be performed, executed, and/or delivered by Payor, Payor agrees to perform, execute, and/or deliver or cause to be performed, executed, and/or delivered any and all such further acts, instruments, deeds, and assurances as may be reasonably required by Holder to consummate all transactions contemplated hereby.

 

16. Any term of this Note may only be amended or waived with the written consent of Payor and Holder.

 

 

[Signature Page Follows.]

 

  

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IN WITNESS WHEREOF, Payor has caused this Note to be executed as of the date first written above.

 

	 	 
WESTMOUNTAIN GOLD, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Gregory Schifrin 	 
	 	Name:	Gregory Schifrin	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 

 

 

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