Property Interest Purchase Option Between Black Hawk Exploration And HuntMountain Resources Covering Dun Glen Project [All dollars herein in United States currency]
Property
Interest Purchase Option
Between
And
HuntMountain
Resources
Covering
Dun
Xxxx Project
[All dollars herein in United States
currency]
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1.
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Black
Hawk Exploration (hereinafter referred to as "BHE") and HuntMountain
Resources (hereinafter referred to as “HNTM”) are together referred to as
the “Parties” in this document.
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2.
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The
purpose of this document is to create a binding agreement between the
Parties that provides for the purchase of HNTM’s interest in the Dun Xxxx
properties in Pershing County in the state of Nevada (Location Map
attached as Exhibit A).
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3.
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The
Property consists of 73 unpatented mining claims, along with
any additional claims staked within a 1 mile radius from these claims by
HNTM and/or BHE or their agents, together with all rights that are
associated with those mining claims,. All of the existing known
claims are identified in Exhibit B hereto (hereinafter referred to as the
“Property”).
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4.
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By
making the payments and work commitments noted below, BHE will exercise
its exclusive option to acquire a 75% interest in the Property (the
“Option”), subject to conditions of HNTM’s underlying lease to purchase
option agreement with claim owners (agreement(s) attached as Exhibit
C)
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5.
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The
Property will be maintained in good standing at the expense of BHE,
including the timely filing or payment of all claims maintenance fees or
taxes and all underlying lease payments as prescribed in Exhibit
C.
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6.
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BHE
will pay a lease payment of $50,000 to HNTM upon signing this
agreement.
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7.
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On
or before the one-year anniversary of the signing of this agreement, BHE
will pay an additional lease payment of $25,000 to
HNTM.
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8.
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On
or before the two-year anniversary of the signing of the agreement, BHE
will pay a final lease payment of $25,000 to
HNTM.
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9.
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BHE
will issue 250,000 restricted common shares to HNTM upon the signing of
this agreement
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10.
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BHE
will issue an additional 100,000 restricted common shares to HNTM on or
before the one year anniversary of signing this
agreement
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11.
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BHE
agrees to expend $700,000 as a work commitment on the Property over a four
year period from the date of signing this
agreement
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12.
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Upon
completion of the terms outlined herewith in this agreement, BHE will earn
a 75% interest from HNTM on the
Property.
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13.
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At
anytime during the term period of this agreement should BHE or agents of
BHE process and/or remove material from tailings, dumps or stock piles
located on the Property, any net revenues recovered from this material
will be divided between BHE and HNTM at ratio of 75% for BHE and 25% for
HNMT.
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14.
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After
signing this agreement, and during the term of this option, HNMT will not
initiate discussions with, respond to inquiries, negotiate with, provide
any information to or enter into any oral or written agreement,
understanding or transaction with any other person or entity regarding the
sale, assignment, or other disposition of any economic interest or other
investment or participation in the Property or any part thereof without
the expressed written consent of
BHE.
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15.
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HNTM
guarantees the Property is 100% controlled as prescribed in Exhibit C by
HNTM and is free and clear of all liens and
encumbrances.
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16.
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This
is an option only agreement and with a 90 day advance written notice from
BHE to HNTM, BHE can elect not to proceed with the acquisition of any, or
any further, interest in the Property without further obligation to
HNTM.
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Agreed to
and dated as of December 10, 2009.
HuntMountain
Resources Ltd.
By
/s/ Xxx
Xxxx
Xxx Xxxx, President
By
/s/ Xxxxx
Xxxxxx
Xxxxx Xxxxxx, CEO
