Document:

Exhibit
      10.41

     

    OPTION
      AGREEMENT

     

    1
      PARTIES

     

    
      	
              1.1

            	
              The
                parties to this agreement are –

            

    

     

    
      	
              1.1.1

            	
              Wits
                Basin Precious Minerals
                Inc.;

            

    

     

    
      	
              1.1.2

            	
              SSC
                Mandarin Financial Services Limited;
                and

            

    

     

    
      	
              1.1.3

            	
              SSC-Sino
                Gold Consulting Co.
                Limited.

            

    

     

    
      	
              1.2

            	
              The
                parties agree as set out below.

            

    

     

    2
      INTERPRETATION

     

    
      	
              2.1

            	
              In
                this agreement, unless inconsistent with or otherwise indicated by
                the
                context –

            

    

     

    
      	
              2.1.1

            	
              "the/this
                agreement"
                means the agreement as set out herein together with all appendices
                hereto;

            

    

     

    
      	
              2.1.2

            	
              "business
                day"
                means a day which is not a Saturday, Sunday or a United States public
                holiday;

            

    

     

    
      	
              2.1.3

            	
              "the
                company"
                means SSC-Sino Gold Consulting Co. Limited, with registration number
                019332, a company duly incorporated in accordance with the laws of
                the
                People's Republic of China, herein represented by Lu Wenyuan, he
                having
                been duly authorised hereto;

            

    

     

    
      	
              2.1.4

            	
              "the
                company board"
                means the board members of the company as at the signature date,
                being
                Norman Lowenthal, Lee Sing Leung, Robin, Lixun, Ma Xiaona, Lu Wenyuan,
                Zhang Yongtao and Wan Guoli;

            

    

     

    
      	
              2.1.5

            	
              "the
                documents of title"
                means collectively –

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	
              2.1.5.1

            	
              the
                transfer documents in respect of the subject interest, duly completed
                in
                accordance with the articles of association of the company, indicating
                the
                purchaser or its nominee as the transferee of the subject interest
                and
                dated the exercise date;

            

    

     

    
      	
              2.1.5.2

            	
              a
                certified copy of a resolution of the directors of the company passed
                in
                accordance with the articles of association of the company approving
                the
                transfer of the subject interest in the name of the purchaser or
                its
                nominee;

            

    

     

    
      	
              2.1.5.3

            	
              the
                written and signed cession of the claims in favour of the purchaser
                or its
                nominee;

            

    

     

    
      	
              2.1.6

            	
              "the
                effective date"
                means the signature date;

            

    

     

    
      	
              2.1.7

            	
              "the
                exercise date"
                means the date on which the purchaser exercises the option, which
                date
                shall be within the option period;

            

    

     

    
      	
              2.1.8

            	
              "the
                exercise price"
                means an amount of USD5,000,000 (five million United States Dollars)
                to be
                paid by the purchaser to the seller on the exercise
                date;

            

    

     

    
      	
              2.1.9

            	
              "the
                option"
                means the option which the seller grants to the purchaser to purchase
                the
                subject interest and the subject claims during the option
                period;

            

    

     

    
      	
              2.1.10

            	
              "the
                option period"
                means 36 months from the effective
                date;

            

    

     

    
      	
              2.1.11

            	
              "the
                option price"
                means an amount of USD100,000 (one hundred thousand United States
                Dollars)
                payable by the purchaser to the seller in respect of the
                option;

            

    

     

    
      	
              2.1.12

            	
              "the
                parties"
                means all the parties to this
                agreement;

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
              2.1.13

            	
              "the
                purchaser"
                means Wits Basin Precious Minerals Inc. (OTCBB: WITM), a public company
                duly incorporated in accordance with the laws Minnesota, United States
                of
                America, or its appointed nominee, herein represented by Stephen
                David
                King, he having been duly authorised
                hereto;

            

    

     

    
      	
              2.1.14

            	
              "the
                seller"
                means SSC Mandarin Financial Services Limited, with registration
                number
                C.I. 641254, a company duly incorporated in terms of the laws of
                Hong
                Kong, herein represented by Lee Sing Leung, Robin, he being duly
                authorised thereto;

            

    

     

    
      	
              2.1.15

            	
              "the
                signature date"
                means the date of signature of this agreement as identified on the
                signature page;

            

    

     

    
      	
              2.1.16

            	
              "the
                subject claims"
                means any and all claims of whatsoever nature and howsoever arising
                held
                by the seller against the company as at the exercise
                date;

            

    

     

    
      	
              2.1.17

            	
              "the
                subject interest"
                means the interest or issued shares amounting to 60% (sixty percentum)
                of
                the company or the company's issued share capital at the exercise
                date;

            

    

     

    
      	
              2.1.18

            	
              any
                reference to the singular includes the plural and vice
                versa;

            

    

     

    
      	
              2.1.19

            	
              any
                reference to natural persons includes legal persons and vice
                versa;

            

    

     

    
      	
              2.1.20

            	
              any
                reference to a gender includes the other
                genders.

            

    

     

    
      	
              2.2

            	
              If
                any provision in a definition is a substantive provision conferring
                rights
                or imposing obligations on any party, effect shall be given to it
                as if it
                were a substantive clause in the body of the agreement notwithstanding
                that it is only contained in the interpretation
                clause.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
              2.3

            	
              The
                clause headings in this agreement have been inserted for convenience
                only
                and shall not be taken into account in its
                interpretation.

            

    

     

    
      	
              2.4

            	
              If
                any period is referred to in this agreement by way of reference to
                a
                number of days, the days shall be reckoned exclusively of the first
                and
                inclusively of the last day unless the last day falls on a day other
                than
                a business day, in which case the last day shall be the next succeeding
                business day.

            

    

     

    
      	
              2.5

            	
              Words
                and expressions defined in any sub-clause shall, for the purposes
                of the
                clause of which that sub-clause forms part, bear the meaning assigned
                to
                such words and expressions in that
                sub-clause.

            

    

     

    
      	
              2.6

            	
              This
                agreement shall be governed by and construed and interpreted in accordance
                with the laws of the United Sates of
                America.

            

    

     

    3
      INTRODUCTION

     

    
      	
              3.1

            	
              It
                is recorded that –

            

    

     

    
      	
              3.1.1

            	
              the
                seller is the owner of the subject interest and the subject
                claims;

            

    

     

    
      	
              3.1.2

            	
              the
                purchaser wishes to acquire an option to purchase the subject interest
                and
                the subject claims from the seller and the seller is willing grant
                such an
                option to the purchaser on the effective date, subject to the terms
                and
                conditions set out in this
                agreement.

            

    

     

    
      	
              3.2

            	
              The
                parties accordingly agree as set out
                herein.

            

    

     

    4 OPTION

     

    With
      effect from the effective date the seller hereby grants the option for the
      option period to the purchaser, who hereby purchases and accepts same from
      the
      seller, subject to the terms and conditions set out in this
      agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    5
      PAYMENT OF THE OPTION PRICE

     

    It
      is
      recorded that the option price for option has been paid by the purchaser to
      the
      seller.

     

    6
      PAYMENT OF EXERCISE PRICE

     

    The
      exercise price for the subject interest and the subject claims shall be paid
      by
      the purchaser to the seller in cash on the exercise date and against delivery
      of
      the documents of title to the purchaser, at the address of the seller referred
      to in 12.2.1 below or at such other premises as agreed to between
      them.

     

    7
      WARRANTIES

     

    
      	
              7.1

            	
              The
                seller warrants that on the exercise date
–

            

    

     

    
      	
              7.1.1

            	
              the
                company will not be under any obligations to issue any shares, further
                interest or debentures to any person, and no resolution will have
                been
                passed to increase its capital or to issue further shares, interest
                or any
                debentures;

            

    

     

    
      	
              7.1.2

            	
              no
                person will have any lien or other preferential right in respect
                of the
                share capital or interest of the company, nor will any person other
                than
                the seller have any claim to any of the subject interest in the
                company;

            

    

     

    
      	
              7.1.3

            	
              the
                company will not have declared any dividends which will not have
                been paid
                in full.

            

    

     

    
      	
              7.2

            	
              Except
                as set out above, the shares or interest and claims are sold without
                any
                warranties of any nature, either express or
                implied.

            

    

     

    8 DELIVERY
      AND CLOSING

     

    At
      12h00
      on the exercise date, the parties shall meet at the address of the seller
      referred to in 12.2.1 below or at such other premises as agreed to between
      them.
      At that meeting, against payment of the exercise price the seller shall deliver
      to the purchaser or its nominee the documents of title.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    9
      CONFIDENTIALITY

     

    The
      parties agree not to disclose details of this agreement or any other matter
      in
      relation to the transactions set out in this agreement to any third party at
      any
      time and further undertake not to make any public announcement relating to
      the
      matters contemplated herein without the prior written approval of the seller
      and
      the purchaser first being had and obtained and which approval shall not be
      unreasonably withheld.

     

    10
      RISK AND BENEFIT

     

    
      	
              10.1

            	
              All
                risk in and benefit to the subject interest and subject claims shall
                pass
                to the purchaser or its nominee on the exercise
                date.

            

    

     

    
      	
              10.2

            	
              Ownership
                of the subject interest and subject claims shall pass to the purchaser
                or
                its nominee with effect from the exercise
                date.

            

    

     

    11
      BREACH

     

    Should
      any party ("the
      party in default")
      breach
      any material term, condition, undertaking, warranty or representation contained
      in this agreement and fail to remedy such breach within seven days (or such
      reasonable longer period as the parties may agree on) after receipt of a written
      notice from any of the other parties ("the
      innocent party/ies"),
      requiring such breach to be remedied, then, without prejudice to any other
      rights that it may have in terms hereof or in law, the innocent party/ies shall
      be entitled to forthwith cancel this agreement on written notice thereof to
      the
      party in default.

     

    12
      NOTICES AND DOMICILIA

     

    
      	
              12.1

            	
              The
                parties choose as their domicilia
                citandi et executandi
                their respective addresses set out in this clause for all purposes
                arising
                out of or in connection with this agreement at which addresses all
                processes and notices arising out of or in connection with this agreement,
                its breach or termination may validly be served upon or delivered
                to the
                parties.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              12.2

            	
              For
                purposes of this agreement the parties' respective addresses shall
                be
                –

            

    

     

    
      	
              12.2.1

            	
              the
                seller at Suite 3015, 301F, One International Finance Centre, 1 Harbour
                View Street, Central, Hong Kong;

            

    

     

    facsimile
      number ~ +852 2504 3232;

     

    
      	
              12.2.2

            	
              the
                purchaser at 900 IDS Center 80 South 8. Street Minneapolis, MN 55402,
                United States for attention Mr. Mark D.
                Dacko,

            

    

     

    facsimile
      number ~ +1 612 395 5276;

     

    
      	
              12.2.3

            	
              the
                company at No. 1-505, Qingnianhubeijie, Dongcheng District,
                Beijing;

            

    

     

    facsimile
      number +86106 588 5786,

     

    or
      at
      such other address of which the party concerned may notify the other/s in
      writing provided that no street address mentioned in this sub-clause shall
      be
      changed to a post office box or poste restante.

     

    
      	
              12.3

            	
              Any
                notice given in terms of this agreement shall be in writing and shall
                –

            

    

     

    
      	
              12.3.1

            	
              if
                delivered by hand be deemed to have been duly received by the addressee
                on
                the date of delivery;

            

    

     

    
      	
              12.3.2

            	
              if
                transmitted by facsimile be deemed to have been received by the addressee
                on the day following the date of despatch, unless the contrary is
                proved.

            

    

     

    
      	
              12.4

            	
              Notwithstanding
                anything to the contrary contained or implied in this agreement,
                a written
                notice or communication actually received by one of the parties from
                another including by way of facsimile transmission shall be adequate
                written notice or communication to such
                party.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    13
      WHOLE AGREEMENT

     

    This
      agreement constitutes the whole agreement between the parties as to the subject
      matter hereof and no agreements, representations or warranties between the
      parties regarding the subject matter hereof other than those set out herein
      are
      binding on the parties.

     

    14
      VARIATION

     

    No
      addition to or variation, consensual cancellation or novation of this agreement
      and no waiver of any right arising from this agreement or its breach or
      termination shall be of any force or effect unless reduced to writing and signed
      by all the parties or their duly authorised representatives.

     

    15
      RELAXATION

     

    No
      latitude, extension of time or other indulgence which may be given or allowed
      by
      any party to the other parties in respect of the performance of any obligation
      hereunder, and no delay or forbearance in the enforcement of any right of any
      party arising from this agreement, and no single or partial exercise of any
      right by any party under this agreement, shall in any circumstances be construed
      to be an implied consent or election by such party or operate as a waiver or
      a
      novation of or otherwise affect any of the party's rights in terms of or arising
      from this agreement or preclude any such party from enforcing at any time and
      without notice, strict and punctual compliance with each and every provision
      or
      term hereof.

     

    16
      COSTS

     

    Each
      party shall bear its own costs in respect of the negotiation, drafting and
      implementation of this agreement. All stamp duty, if any, shall be borne and
      paid by the purchaser.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    
      	
              SIGNED
                at ________________________________________

            	
               

            	
              as
                of _________________________________________

            
	
               

            	
               

            	
               

            	
               

            
	
              AS
                WITNESS:

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
              WITS
                BASIN PRECIOUS

            
	
               

            	
               

            	
              For: 

            	
              MINERALS
                INC.

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              (Name
                of witness in print)

            	
               

            	
              Duly
                Authorised

            
	
               

            	
               

            	
               

            	
               

            
	
              SIGNED
                at ________________________________________

            	
               

            	
              as
                of _________________________________________

            
	
               

            	
               

            	
               

            	
               

            
	
              AS
                WITNESS:

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
              SSC
                MANDARIN FINANCIAL

            
	
               

            	
               

            	
              For: 

            	
              SERVICES
                LIMITED

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              (Name
                of witness in print)

            	
               

            	
              Duly
                Authorised

            
	
               

            	
               

            	
               

            	
               

            
	
              SIGNED
                at ________________________________________

            	
               

            	
              as
                of _________________________________________

            
	
               

            	
               

            	
               

            	
               

            
	
              AS
                WITNESS:

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
              SSC-SINO
                GOLD

            
	
               

            	
               

            	
              For: 

            	
              CONSULTING
                CO. LIMITED

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              (Name
                of witness in print)

            	
               

            	
              Duly
                Authorised

            

    

     

    
      
        
        

      

      
        9Exhibit
      10.42

     

     

      
        

      

    

    Joint
      Venture Agreement

    
      
  

    Between

     

    [Shanxi
      Hua Ze Nickle Smelting Co.,]

     

    and

     

    [China
      Global Mining Resources Limited]

    

    for
      the establishment of

    

    [Sino-American
      Hua Ze Nickel & Cobalt Metal Co., Ltd.]

    

    Dated
      14
      April 2007

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
      Joint Venture Agreement
      (the
“Agreement”) is entered into by and between the following parties in Xian,
      China. on [April 14, 2007],

     

    [
      Shanxi
      Hua Ze Nickle Smelting Co.,
      ], a
      company duly incorporated and existing under the laws of PRC. (“Party
      A”)

    Address:
      [High-Tech Zone in Xi’an, Shanxi Province, PRC]

     

    [China
      Global Mining Resources Limited],
      a
      company duly incorporated and existing under the laws of British Virgin Islands
      (“ Party B”), a wholly-owned subsidiary of Wits Basin Precious Metal Inc, a
      company duly incorporated and existing under the laws of USA;

     

    (Party
      A
      and Party B are hereafter collectively referred to as “Parties”, and
      individually as a “Party”)

     

    Whereas

     

    (1)
      The
      Parties agree to establish Sino-foreign equity joint venture called
      [Sino-American Hua Ze Nickel & Cobalt Metal Co., Ltd.] (the “Company” or the
“Joint Venture”) in the city of Xi’an, PRC with Party A to contribute [assets
      and equity interests] it held representing seventy five percent (75%) of the
      equity interest in the Company, Party B to contribute cash representing twenty
      five percent (25%) of the equity interest in the Company, based on this
      Agreement as well as the joint venture contract (“JV Contract”) and articles of
      association (“Articles of Association”) which shall be signed on the basis of
      this Agreement for the establishment of the Company;

     

    (2)
      As of
      the date of this Agreement, the equity interests which Party A proposes to
      inject into the Company are held directly by Party A’ shareholders. Both Parties
      agree that Party A may contribute the equity interests to the Company after
      Party A has made agreements with its shareholders for the acquiring of the
      equity interests;

     

    (3)
      Party
      B acknowledge that the total value of the assets to be contributed and the
      assets relating to the equity interest to be contributed by Party A is above
      RMB
      1 billion. Party B wishes to negotiate with Party on the establishment of the
      Company.

     

    NOW
      THEREFORE,
      it is
      agreed as follows:

     

    PART
      A. JOINT
      VENTURE ARRANGEMENT 

     

    Article
      1 – Parties to the Joint Venture

     

    The
      Parties to the joint venture are:

     

    
      
        
          
            	(1)	
                    PARTY
                      A,[ Shanxi Hua Ze Nickle Smelting Co.,
                      ]

                  

          

        

      

    

     

    
      
        	
                Legal
                  Representative: 

              	
                [
                  Wang Yinghu]

              
	 	 
	
                Position:

              	
                [Chairman
                  of Board]

              
	 	 
	
                Nationality:

              	
                [
                  Chinese ]

              

      

    

     

    
      	(2)	
              PARTY B,
                China Global Mining Resources Limited.,
                

            

    

     

    
      
        	
                Legal
                  Representative: 

              	
                [William
                  Green]

              

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

      
        	
                Position:
                  

              	
                [President]

              
	 	 
	
                Nationality:
                  

              	
                [U.S.A.]

              

      

    

     

    Article
      2 – Establishment of the Company

     

    
      
        	2.1	
                Name
                  and Address

              

      

    

     

    
      	 	
              (a)

            	
              The
                name of the Company shall include “Hua Ze” and be registered with the
                company registration authority.

            

    

     

    
      	 	
              (b)

            	
              The
                name of the Company in Chinese is:
                [         
                ]

            

    

     

    
      
        
          	
                	 	
                  The
                    name of the Company in English is: “[Sino-American Hua Ze Nickel &
                    Cobalt Metal Co.,
                    Ltd.]”

                

        

      

    

     

    
      	 	
              (c)

            	
              The
                registered address of the Company shall be at: [High-Tech Zone in
                Xi’an
                Shanxi Province, PRC]

            

    

     

    
      	2.2	
              Local
                Government Approval

            

    

     

    The
      establishment of the Company shall be subject to the approval by appropriate
      government authorities. Party A shall apply, on behalf of the Parties and JV
      Company, to such government authorities for the approval of any and all relevant
      documents legally required for the establishment of the Company, including
      the
      issuance of the Approval Letter, Approval Certificate and Business License
      of
      the Company.

     

    
      	2.3	
              Hong
                Kong & U.S. Approvals

            

    

     

    Party
      B
      should apply for both government authorities for the approvals when it is
      required by the relevant laws and regulations.

     

    Article
      3 – Purpose and Scope of Business

     

    
      	3.1	
              Purpose

            

    

     

    The
      purpose of the Company shall be to adopt advanced technology and such other
      management methods in order to achieve favourable economic results and an
      acceptable rate of return for the Parties on their respective capital
      contributions as well as to make a contribution to PRC.

     

    
      	3.2	
              Scope
                of Business

            

    

     

    The
      scope
      of the business of the Company shall be Nickel and Cobalt smelting, mines
      development and other metal’s development and producing. And it subjects to any
      legally required government approvals and/or registrations.

     

    
      	3.3	
              Production
                and Operation Scale

            

    

     

    After
      the
      further financing and development of the Company’s business, the annual
      production capacity of electric nickels products of the Company expected for
      the
      year of 2010 is 10,000 tons and with the annual profit no less than RMB780
      million.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Article
      4 – Total Investment and Registered Capital

     

    
      	4.1	
              Total
                Investment

            

    

     

    The
      Company’s total investment shall be RMB two and one half billion
      (RMB2,500,000,000].

     

    
      	4.2	
              Registered
                Capital

            

    

     

    The
      Company’s registered capital shall be RMB one billion four hundred and forty
      nine million three hundred and seventy five thousand
      (RMB1,449,375,000).

     

    
      	4.3	
              Capital
                Contribution and Equity Ratio

            

    

     

    
      	 	
              (a)

            	
              Party
                A’s contribution to the registered capital of the Company shall be
                in the
                form of assets and equity interest of its controlling subsidiary,
                in the
                amount of RMB1,087,031,250, representing seventy five percent (75%)
                of the
                equity interest of the Company. (The value of related assets and
                interest
                contributed should include the unsecured liabilities of RMB a hundred
                and
                sixty million (RMB 160,000,000) recorded as accounts payable or
                shareholders’ loans specified in the Appendix 1 of this
                Agreement.)

            

    

     

    The
      equity interest that Party A will contribute to the Company is detailed in
      Appendix 1 attached hereto.

     

    
      	 	
              (b)

            	
              Party
                B’s contribution to the registered capital of the Company shall be
                in the
                form of cash in the amount of RMB362,343,750, representing twenty
                five
                percent (25%) of the equity interest of the Company. Purpose of use
                of
                such contribution and use of the loans specified in Article 4.4 and
                Article 4.6 is detailed in Appendix 2 attached
                hereto.

            

    

     

    
      	4.4	
              Contribution
                and Loan Arrangement Schedule

            

    

     

    
      	4.4.1	
              Subject
                to the satisfaction of the conditions set forth in Article 4.5 below,
                Party A shall:

            

    

     

    
      	 	
              (a)

            	
              contribute
                40% of its contribution in the amount of RMB434,812,500 within 30
                days
                after the date of issuance of the Company’s Business License (the
                “Establishment Date”); and

            

    

     

    
      	 	
              (b)

            	
              contribute
                the balance of its contribution of the registered capital of the
                Company
                before 31st
                December, 2007.

            

    

     

    
      	
              4.4.2

            	
              Subject
                to the satisfaction of the conditions set forth in Article 4.5 below,
                Party B shall make the following contribution and loan
                arrangement:

            

    

     

    
      	 	
              (a)

            	
              RMB
                154,648,313 is equity contribution by cash within 90 days of signing
                of
                the Agreement;

            

    

     

    
      	 	
              (b)
                

            	
              The
                remaining RMB 347,850,000 will be equity contribution and shareholder’s
                loan before December 31 2007. The equity contribution shall be 59.71
                % of
                this part of payment and the shareholder’s loan shall be
                40.29%.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      
        
          	4.5	
                  Conditions
                    Precedents

                

        

      

    

     

    Each
      Party shall not be obligated to make its respective capital contributions to
      the
      registered capital of the Company until and unless each of the following
      conditions has been satisfied without delay, unless waived by the Party in
      writing:

     

    
      	 	
              (a)

            	
              The
                following documents or certificates required for the legal establishment
                of the Company have been issued:

            

    

     

    
      	 	
              (i)

            	
              an
                approval document issued by appropriate government authorities approving
                the Feasibility Study Report and all its appendices jointly prepared
                by
                the Parties relating to the establishment and operations of the
                Company;

            

    

     

    
      	 	
              (ii)

            	
              the
                Approval Letter and Approval Certificate issued by appropriate government
                authorities approving the establishment of the Company, the JV Contract
                and the Articles of Association of the Company (including their respective
                Exhibits) without varying their terms unless any such variation has
                first
                been agreed by the Parties in
                writing;

            

    

     

    
      	 	
              (iii)

            	
              the
                Business License of the Company issued by appropriate government
                authority.

            

    

     

    
      	 	
              (b)

            	
              Party
                B has, according to Article 4.6 of the Agreement, arranged the loan
                in the
                amount of RMB seventy seven million three hundred thousand (RMB77,300,000)
                to Party A or a third party designated by Party A and Party A or
                the said
                third party has received such loan before May 7,
                2007.

            

    

     

    
      	4.6	
              Pre
                Financing Arrangement

            

    

     

    Party
      B
      shall arrange the loan in the amount of RMB seventy seven million three hundred
      thousand (RMB77,300,000) to Party A or the third party designated by Party
      A
      before May 7, 2007 for the purpose of mining development and construction for
      the subsidiary listed in the Appendix 1 hereof. The detailed payment schedule
      and repayment of such loan may be further negotiated and determined by the
      parties.

     

    
      	4.7	
              Further
                Financing Arrangement

            

    

     

    Both
      Parties may arrange further financing arrangement for Company to the extent
      permitted by PRC laws and according to the Company’s Articles of Association for
      the Company’s business development.

     

    
      	4.8	
              Priority
                Call Option

            

    

     

    After
      the
      completion of loans provided in Article 4.4 and Article 4.6, Party B may remain
      the right, in any time, to convert of the outstanding balance of such loans
      into
      equity interest in the Company to hold additional equity interest of the Company
      to the extent permitted by the PRC laws and regulations.

     

    After
      the
      establishment of the Company, Party B has the first right for call option for
      acquiring another 40% of the equity interest of the Company when Party A has
      the
      intention to transfer such equity interest it holds. Detailed terms and
      conditions shall be negotiated and determined by the Parties.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	4.9	
              Priority
                Future Acquisition Option

            

    

     

    Party
      B
      has the priority right to acquire other mines which are and to be owned by
      the
      connected party of Party A, including zinc mines, moly mines and any other
      mines. Detailed terms and conditions shall be negotiated and determined by
      the
      Parties.

     

    Article
      5 – Board of Directors and General Manager

     

    
      	5.1	
              Formation

            

    

     

    The
      date
      of the issuance of the business license of the Company shall be the date of
      the
      establishment of the Company and the Board of Directors. The Board of Directors
      is the highest authority of the Company and shall decide all major issues of
      the
      Company.

     

    
      	5.2	
              Board
                Composition and Term of Office

            

    

     

    The
      Board
      of Directors of the Company shall consist of [five (5)] persons. Party A shall
      appoint [three (3)] persons, Party B shall appoint [two (2)] persons. The
      Chairman shall be nominated by Party A. The Chairman is the legal representative
      of the Company. The term of office of the Directors and the Chairman shall
      be
      three (3) years, provided that any Party may replace any of their appointed
      Directors during the term of their office. Directors are eligible to serve
      consecutive terms if they are re-appointed by the Parties. The names of the
      members of the initial Board of Directors appointed by the Parties are set
      forth
      in Appendix 3 attached hereto.

     

    
      	5.3	
              Authority
                of Board of Directors

            

    

     

    The
      following matters shall require the unanimous vote of all Directors present
      at a
      duly convened meeting of the Board of Directors or unanimous written consent
      if
      adopted by a written resolution without a meeting:

     

    
      	 	
              (a)

            	
              amendment
                of the Articles of Association or the JV
                Contract;

            

    

     

    
      	 	
              (b)

            	
              increase
                or decrease in the registered capital of the
                Company;

            

    

     

    
      	 	
              (c)

            	
              termination
                or dissolution of the Company;

            

    

     

    
      	 	
              (d)

            	
              merger
                with another organization, division or change of the form of the
                Company.

            

    

     

    Such
      other matters as agreed to by the Parties in the JV Contract and the Articles
      of
      Association of the Company shall also require unanimous approval by the Board
      of
      Directors; provided that any matters that are not legally required to be
      resolved by unanimous decision by the Board of the Directors shall be decided
      upon by simple majority.

     

    
      	5.4	
              General
                Manager

            

    

     

    The
      Company shall have one General Manager and Two Deputy General Managers, who
      shall be nominated by Party A and officially appointed by the Board of
      Directors. The name of the General Manager and Deputy General Managers are
      set
      forth in Appendix 4 attached hereto.

     

    
      	5.5	
              The
                Company shall have one Financial Officer. The first Financial of
                the
                Company shall be nominated by Party B and officially appointed by
                the
                Board of Directors. The position of the Financial Officer shall be
                concurrently held by one Director nominated by Party B. The powers
                and
                duty of the

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    Financial
      Officer of the Company shall be further negotiated and determined by the Parties
      in the Articles of Associations.

     

    Article
      6 – Profit Distribution

     

    
      	6.1	
              Dividends

            

    

     

    The
      Parties agree that the dividends to be distributed shall be paid to each Party
      in accordance with the proportion of paid-up contribution by the Party in the
      registered capital of the Company.

     

    Article
      7 – JV Documents

     

    The
      Parties hereby specifically agree to the following:

     

    (1)
      The
      Agreement shall become effective after being signed by the authorized
      representatives of the Parties and affixed with the official seals of the
      Parties;

     

    (2)
      Once
      the Agreement becomes effective, it shall supersede the Termsheet
      for Convertible Bond Facility
      signed
      on March 27, 2007 by Party B and Shanxi Xingwang Group. The Termsheet
      for Convertible Bond Facility
      shall
      become void and null upon the Agreement’s becoming effective;

     

    (3)
      Once
      the Articles of Association and the JV Contract becomes effective, such
      documents shall supersede this Agreement and this Agreement shall become void
      and null; and

     

    (4)
      Party
      A may terminate the Agreement in its absolute discretion if Party B fails to
      arrange the loan as specified in Article 4.6 to Party A or the third party
      designated by Party A within 15 business days after signing of this
      Agreement.

     

    (5)
      The
      use of the Party B’s contribution and loans in the Company shall be in strict
      compliance with the purpose of use specified in Appendix 2 of the
      Agreement.

     

    Article
      8 – JV Contract and Articles of Association

     

    The
      formal JV documents(including JV Contract and Articles of Association) shall
      be
      signed by both Parties within one month after signing of the
      Agreement

     

    Article
      9 – Confidentiality and Non-Disclosure

     

    Each
      Party agrees to keep confidential and not disclose to any third party the terms
      of this Agreement and/or any related matter without the prior written consent
      of
      the other Party.

     

    Article
      10 – Governing Law

     

    The
      formation of this Agreement, the JV Contract and the Articles of Association,
      their validity, interpretation, execution and settlement of any disputes arising
      thereunder shall be governed by, and construed in accordance with, the laws
      of
      the PRC excluding Hong Kong, Macao and Taiwan.

     

    Article
      11 – Dispute Resolution

     

    The
      Parties shall strive to settle any dispute, controversy or claim arising from
      the interpretation or performance of, or in connection with the Agreement
      through friendly consultations. In case no settlement can be reached through
      consultations within sixty (60) days of the delivery of notice requesting such
      consultation
      by one Party to the other Party, then such dispute shall be submitted to China
      International Economic and Trade Arbitration Commission for arbitration in
      Beijing. The arbitration proceedings shall be conducted in Chinese. The
      arbitration shall be legally final and binding on the Parties.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Article
      12 – Language and Counterparts

     

    This
      Agreement is written in English and Chinese. Both language versions shall have
      equal validity and any inconsistencies or conflicts between the two language
      versions shall be resolved according to the intention of the Parties and the
      purpose of this Agreement. This Agreement is executed in two (2) originals
      of
      each language version, with each Party having one (1) of each language
      version.

     

    IN
      WITNESS WHEREOF, the Parties have caused their respective duly authorized
      representatives to execute the Agreement and affix their respective office
      seals
      to this Agreement as of the date first written above.

     

    (Below
      is
      left blank intentionally)

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (signing
      page)

     

    [Shanxi
      Huaze Nickle Smelting Co.,] (seal) 

     

    Authorized
      Representative: ___________________________

     

    Signature:
      /s/                                               
       

     

    [China
      Global Mining Resources Limited](seal)

     

    Authorized
      Representative:     

     

    Signature:
      /s/                                                     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Appendix
      1

     

    [Equity
      interest to be Contributed by Party A to the Company]

     

    [Ping’an
      Xinhai Resource Development Company Limited, 93.33% equity
      interest]

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Appendix
      2

     

    Purpose
      of use of the Party B’s contribution and loans

     

    
      	
              Item

            	 	
              Capital
                (RMB10,000)

            
	
              Constructing
                and equipment of Yuanshishan

            	 	
              10000

            
	
              Repayment

            	 	
              16000

            
	
              Develop
                new mine

            	 	
              17000

            
	
              Cash
                flow for Mine

            	 	
              7000

            
	
              Cash
                flow for smelting plant

            	 	
              5000

            
	
              Cash
                flow for smelting technical system

            	 	
              2000

            
	
              Total

            	 	
              57000

            

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Appendix
      3

     

    [Initial
      Members of the Company’s Board of Directors]

     

    Director
      nominated by Party A:

     

    Director
      nominated by Party B:

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Appendix
      4

     

    [
      Managers of the Company]

     

    General
      Manager nominated by Party A:

     

    Deputy
      General Manager nominated by Party A:

     

    ____________________________.

     

    
      
        
        

      

      
        13

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