MOSQUITO CONSOLIDATED GOLD MINES LIMITED VANCOUVER, B.C. V6C ITI
MOSQUITO
CONSOLIDATED GOLD MINES LIMITED
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VANCOUVER,
B.C.
V6C
ITI
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TELEPHONE;
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FAX;
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December
21, 2005
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Mission
B.C.
V2V
4
Yl
Dear
▇▇.
▇▇▇▇▇▇:
RE:
Option to Earn Interest in Statlu Creek A22re2ate
Proiect
Further
to our recent discussions, this letter will confirm our agreement whereby ▇▇▇▇
▇. ▇▇▇▇▇▇ ("▇▇▇▇▇▇") has agreed to grant an option to Mosquito Consolidated
Gold
Mines Limited. ("MSQ") whereby MSQ can earn a 60% interest in the Statlu
Aggregate Project (see Schedule "A"), (the "Properties"), located near Chehalis,
British Columbia. The "Properties" are mineral tenures and an Investigative
Permit # 239450 owned and registered in the name of ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇
Mosquito
Consolidated Gold Mines Limited ("MSQ") will earn a 60% interest in the
Properties under the following terms and conditions.
1.
MSQ
will be the financier of the proj ect to the time that a license of occupation
is issued by the Department of Land and Water of British Columbia ("L WBC")
whereby the sand and gravel has been tested to the standard required for the
issuance of a license of occupation and a permit which will allow sand and
gravels from the properties to be mined and sold from the
properties.
2.
MSQ
shall have earned a 60% interest in the properties upon the receipt of a license
of occupation and a permit which will allow sand and gravels from the Properties
to be mined and sold.
3.
MSQ
shall pay all cost including but not limited to: Engineering, Geology, Survey,
Testing, Drilling, Administration, Insurance, Site Expenses, other Consultants,
etc. that may
be
required by the regulatory authorities in order for the gravels to be mined
from
the Properties.
4.
MSQ
shall employ ▇▇▇▇▇▇, for a fee plus expenses, until the receipt of a license
of
occupation and a permit which will allow sand and gravels from the Properties
to
be mined and sold.
5.
This
agreement is subjects to the approval of the TSX - Venture Exchange or LOI
and/or formal agreement is null and void, and any monies paid by the MSQ to
▇▇▇▇▇▇ shall be retained by ▇▇▇▇▇▇ as damages and the properties shall remain
in
the possession of ▇▇▇▇▇▇
6.
If MSQ
fails to acquire the required license of occupation by December 31, 2008 then
this Option to earn a 60% Interest in the Statlu Creek Aggregate Project shall
expire and become null and void. Any monies expended by MSQ shall be retained
as
damages to ▇▇▇▇▇▇, and the properties shall be retained by ▇▇▇▇▇▇.
7.
MSQ
shall be the operator of the Properties.
8.
MSQ
shall pay all taxes, fees, insurance and any other monies necessary to carry
out
operations and maintain the property. in good standing so long as this agreement
is in good standing.
9.
If
either party requests, a more formal agreement shall be prepared and executed
embodying the terms of this letter agreement.
10.
▇▇▇▇▇▇ will have access to all data generated on the property and review
activities and results.
11.
Insurance: MSQ shall obtain and maintain and require any contractor engaged
on
the property to obtain and maintain, during any period when active work is
carried out on the property, adequate insurance, which in no case will contain
less than Two Million Dollar ($2,000,000.00) liability clause.
12.
Any
additional properties acquired by MSQ or ▇▇▇▇▇▇ within a 10 kilometer distance
of the "Properties" shall become a part of the "Properties".
13.
This
contract and all other obligations of MSQ may not be transferred without ▇▇▇▇▇▇▇
written consent which cannot be unreasonably withheld.
14.
Legal
Jurisdiction: The laws of the Province of British Columbia shall govern this
agreement and the formal agreement.
If
the
above meets with your approval, please signify your acceptance below and return
to us by fax. ▇-▇▇▇ ▇▇▇-▇▇▇▇
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Upon
receipt of your acceptance, we will initiate the approval process with the
TSX-Venture Exchange
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