MINE FINANCING Clause Samples

MINE FINANCING. 12.01 The contributions of the Participants toward the Costs shall be individually and separately provided by them as capital contributions to Holdco. 12.02 Subject to the prior right of Holdco, as determined by the Shareholders’ Committee, to encumber the Share Participation of each Participant in order to secure financing or refinancing of Mine Costs, any party may pledge, mortgage, charge or otherwise encumber all, and not less than all, of its Share Participation in order to secure moneys borrowed and used by that party for the sole purpose of enabling it to finance its participation under this Agreement or in order to secure by way of floating charge as a part of the general corporate assets of that party moneys borrowed for its general corporate purposes, provided that the pledgee, mortgagee, holder of the charge or encumbrance (in this subsection called the "Chargee") shall hold the same subject to the provisions of this Agreement and that if the Chargee realizes upon any of its security it will comply with this Agreement. The Agreement between the party hereto, as borrower, and the Chargee shall contain specific provisions to the same effect as the provisions of this paragraph, and evidence thereof shall first be provided to all other parties hereto.

MINE FINANCING. 12.1 The contributions of the Participants toward the Mine Costs shall be individually and separately provided by them. 12.2 Any party may pledge, mortgage, charge or otherwise encumber its Interest in order to secure moneys borrowed and used by that party for the sole purpose of enabling it to finance its participation under this Agreement or in order to secure by way of floating charge as a part of the general corporate assets of that party moneys borrowed for its general corporate purposes, provided that the pledgee, mortgagee, holder of the charge or encumbrance (in this paragraph called the “Chargee”) shall hold the same subject to the provisions of this Agreement and that if the Chargee realises upon any of its security it will comply with this Agreement. Upon delivery to the Operator of evidence reasonably satisfactory to the Operator that the Chargee requires to record its charge against the Interest of the borrower, the Operator shall cause title to the Property to be recorded in the names of the individual parties. All costs of such a reconveyance, and the subsequent additional costs if the respective Interests should vary, shall be borne by the borrower alone. The agreement between the party hereto, as borrower, and the Chargee shall contain specific provisions to the same effect as the provisions of this paragraph.

MINE FINANCING. 8.1. Sunburst de Mexico may pledge, mortgage, charge or otherwise encumber its interest in the Cieneguita Property in order to secure moneys borrowed and used by it for the sole purpose of enabling it to finance its mining operations under this Agreement or in order to secure by way of floating charge as a part of the general corporate assets of that party moneys borrowed for its general corporate purposes.

MINE FINANCING. 12.1. The contributions of the Participants toward the Mine Costs shall be individually and separately provided by them. 12.2. Solely in order to secure loans to meet their respective contributions toward the Mine Costs, the Participants shall each be entitled to pledge, hypothecate, mortgage, charge or otherwise encumber, as security for financing their respective contributions, the Mining Properties and Assets to the extent of their respective Interests: provided; however, that security shall not be given by any Party unless the proposed pledgee, mortgagee, holder of the hypothec, Lien or encumbrance (hereinafter called the "Chargee") first undertakes in writing with all the AGNICO-EAGLE MINES LIMITED / AMERICAN BONANZA GOLD CORP. FRASER ▇▇▇▇▇▇ CASGRAIN LLP Option Agreement – ▇▇▇▇▇ / Noyon-▇▇▇▇▇▇▇▇ Properties November 15, 2007 other Participants, in form reasonably satisfactory to counsel for the Operator and binding upon the Chargee, that: (a) the Chargee will not enter into possession or institute any proceedings for foreclosure or partition of an encumbering Participant's Interest and that that security shall be subject to the provisions of this Agreement; (b) the Chargee's remedies under that security shall be limited to the sale of the whole (but only of the whole) of the encumbering Participant's Interest held under that security to the other Participants (if more than one then in proportion to their respective Interests at that time) or, with their unanimous consent, to any one of them, or failing any sale as aforesaid, by a sale at a public auction to be held after 90 days' prior notice to the other Participants; provided, however, that, as a condition of the purchase, the purchaser shall covenant and agree with the Parties that it: (i) assumes all the obligations of the encumbering Participant in connection with this Agreement; and (ii) will be bound by this Agreement, and prior to completing the purchase, delivers to the Parties notice to that effect in writing, in form reasonably satisfactory to counsel for the Operator.

MINE FINANCING. 12.01 The contributions of the Participants toward the Mine Costs shall be individually and separately provided by them. 12.02 Any party may pledge, mortgage, charge or otherwise encumber its Interest in order to secure moneys borrowed and used by that party for the sole purpose of enabling it to finance its participation under this Agreement or in order to secure by way of floating charge as a part of the general corporate assets of that party moneys borrowed for its general corporate purposes, provided that the pledgee, mortgagee, holder of the charge or encumbrance (in this subsection called the "Chargee") shall hold the same subject to the provisions of this Agreement and that if the Chargee realizes upon any of its security it will comply with this Agreement. The Agreement between the party hereto, as borrower, and the Chargee shall contain specific provisions to the same effect as the provisions of this paragraph.

MINE FINANCING. The parties hereto shall be responsible for providing or arranging the financing of a Mine. In providing or arranging the financing for a Mine, the Property and Mine may be pledged, hypothecated, mortgaged, charged, or otherwise encumbered in order to secure monies borrowed and used for the sole purpose of enabling the Mine to be financed. Subject to this Article any party may pledge, mortgage, hypothecate, charge or otherwise encumber its interest in order to secure by way of floating charge as a part of the general corporate assets of that party's money borrowed for its general corporate purposes, provided that the pledgee, mortgagee, holder of the charge or encumbrance (in this paragraph referred to as a "Chargee") shall hold the same subject to the provisions of this Agreement and that if the Chargee realizes upon any of its security it will comply with this Agreement. The agreement between the party, as borrower, and the Chargee shall contain specific provisions to the same effect as the provisions of this Article.

MINE FINANCING. 12.01 The contributions of the Participants toward the Mine Costs shall be individually and separately provided by them. 12.02 Solely in order to secure loans to meet their respective contributions toward the Construction Costs, the Participants shall each be entitled to pledge, mortgage, charge or otherwise encumber the Property and Assets to the extent of their respective Interest. However, security shall not be given by any party unless the proposed pledgee, mortgagees, holder of the charge or encumbrance (hereinafter called the AChargee@) first undertakes in writing with all the other Participants, in form reasonably satisfactory to counsel for the Operator and binding upon the Chargee, that: (a) it will not enter into possession or institute any proceedings to foreclose or partition an encumbering Participant=s Interest and that its security shall be held subject to this Agreement; and (b) its remedies under that security shall be limited to the sale of the whole (but only the whole) of the encumbering Participant=s Interest held under that security to the other Participants, if more than one then in proportion to their respective Interests at that time or, with their unanimous consent, to any one of them or failing any sale as aforesaid, by a sale at a public auction to be held after 90 days= prior notice to the other Participants; provide however, that, prior to completing the purchase, the purchaser shall deliver an agreement, in form reasonably satisfactory to counsel for the Operator, that it assumes the obligations of the encumbering Participant under this Agreement and will be bound by this agreement.