<SEC-DOCUMENT>0001437749-11-009465.txt : 20111213
<SEC-HEADER>0001437749-11-009465.hdr.sgml : 20111213
<ACCEPTANCE-DATETIME>20111213120058
ACCESSION NUMBER:		0001437749-11-009465
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20111212
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20111213
DATE AS OF CHANGE:		20111213

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HECLA MINING CO/DE/
		CENTRAL INDEX KEY:			0000719413
		STANDARD INDUSTRIAL CLASSIFICATION:	MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400]
		IRS NUMBER:				770664171
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08491
		FILM NUMBER:		111257884

	BUSINESS ADDRESS:	
		STREET 1:		6500 N MINERAL DRIVE SUITE 200
		STREET 2:		NONE
		CITY:			COEUR D'ALENE
		STATE:			ID
		ZIP:			83815-9408
		BUSINESS PHONE:		2087694100

	MAIL ADDRESS:	
		STREET 1:		6500 N MINERAL DRIVE SUITE 200
		STREET 2:		NONE
		CITY:			COEUR D'ALENE
		STATE:			ID
		ZIP:			83815-9408
</SEC-HEADER>
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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="FONT-VARIANT: small-caps; DISPLAY: inline">Current Report Pursuant to Section 13 or 15(</font>d<font style="FONT-VARIANT: small-caps; DISPLAY: inline">) of</font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Date of Report (Date of earliest event reported):&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">December 12, 2011</font></font></div>

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<td width="33%" style="TEXT-ALIGN: center"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(State or Other Jurisdiction</font></td>
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<td width="33%" style="TEXT-ALIGN: center"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">of Incorporation)</font></td>
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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Item 1.01&#160;&#160;Entry into a Material Definitive Agreement.</font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On December 12, 2011, Rio Grande Silver, Inc. (&#8220;RGS&#8221;), a wholly-owned subsidiary of Hecla Mining Company (&#8220;Hecla&#8221;), entered into a Purchase Sale Agreement (the &#8220;Agreement&#8221;) with Emerald Mining &amp; Leasing, LLC (&#8220;EML&#8221;), Golden 8 Mining, LLC (&#8220;G8&#8221;), and AgX Resources, Inc. (&#8220;AgX&#8221;), (EML, G8, and AgX are collectively referred to as the &#8220;Sellers&#8221;).&#160;&#160;The Sellers owned interests in certain property which were governed by a Joint Venture Agreement (&#8220;2008 JVA&#8221;) entered into between the EML, G8, and RGS on February 21, 2008.&#160;&#160;Under the terms of the Agreement, RGS will purchase the Sellers&#8217; undivided interests in certain property that had previously been part of the 2008 JV, in return for the issuance of 5,395,683 shares of Hecla common stock.</font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>In addition, EML, G8, and RGS terminated the 2008 JVA, and entered into a new Joint Venture Agreement (&#8220;2011 JVA&#8221;) for the exploration, evaluation and possible development and mining of mineral resources on certain properties in Mineral County, State of Colorado.&#160;&#160;EML, G8, and RGS shall manage and operate under the name of San Juan Silver Mining Joint Venture (the &#8220;Venture&#8221;), and RGS shall be the initial operator.</font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>As part of their contribution to the Venture, G8 and EML shall contribute assets valued pursuant to the terms of the 2011 JVA at $1,700,000 and $1,300,000 respectively.&#160;&#160;In return, RGS&#8217;s will contribute assets valued pursuant to the terms of the 2011 JVA at $7,000,000.</font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Agreement is attached as Exhibit 10.1 and&#160;&#160;incorporated by reference herein to provide you with information regarding its terms.&#160;&#160;It is not intended to provide any other factual information about us.&#160;&#160;Such information can be found elsewhere in other public filings we have made with the Securities and Exchange Commission, which are available without charge at www.sec.gov.</font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>As described in Item 1.01 above, which is incorporated by reference into this Item 3.02, on December 12, 2011, Hecla issued 5,395,683 shares of Hecla Mining Company common stock (the &#8220;Shares&#8221;) in a private placement pursuant to Section 4(2) of the Securities Act in connection with the purchase of certain property interests in Mineral County in the State of Colorado.&#160;&#160;The Shares are restricted as that term is defined under Rule 144.</font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Purchase and Sale Agreement, dated November 21, 2011, by and among Emerald Mining &amp; Leasing, LLC, Golden 8 Mining, LLC, AgX Resources, LLC, and Rio Grande Silver, Inc. *</font></div>
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<div style="TEXT-ALIGN: right; LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-WEIGHT: bold">Exhibit 10.1<br>
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<div style="TEXT-ALIGN: center; LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">November 21, 2011</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This Agreement is made effective the above date between Emerald Mining &amp; Leasing, LLC, a limited liability company formed under Colorado law (&#8220;EML&#8221;), AgX Resources, LLC, a limited liability company formed under Colorado law (&#8220;AgX&#8221;), and Golden 8 Mining, LLC, a limited liability company formed under Oklahoma law (&#8220;G8&#8221; and with EML and AgX collectively &#8220;Sellers&#8221;) and Rio Grande Silver, Inc., a Delaware corporation (&#8220;Buyer&#8221;).</font></div>

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<div style="TEXT-ALIGN: center; LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">RECI</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">T</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">A</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">L</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">S</font></font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The parties are each a Participant in a JV Agreement, &#8220;Exploration, Development and Mine Operating Agreement&#8221;, dated February 21, 2008, as subsequently amended (the &#8220;JV Agreement&#8221;) or has an interest in the JV Agreement and the underlying Properties through a Participant;</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Sellers intend by this Purchase and Sale Agreement (this &#8220;Agreement&#8221;) to sell to </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Buyer the Sellers&#8217; undivided interests in certain property which is governed by the JV Agreement; and</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 27pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">1.&#160;&#160;&#160;PROPERTY SOLD.&#160;&#160;&#160;</font>Sellers agree to sell, and Buyer agrees to buy, the properties set forth on <font style="DISPLAY: inline; FONT-WEIGHT: bold">Exhibit &#8220;A&#8221; </font>(the &#8220;Properties&#8221;) hereto and by this reference incorporated herein on the terms and conditions set forth in this Agreement.&#160;&#160;Buyer does not and will not assume any obligation or liability of any Seller, and Buyer will not, and shall not be deemed to, assume or otherwise succeed to, any obligation or liability, even if imposed upon Buyer as a successor in interest to the Property, except as expressly provided in this Agreement.</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">2.</font>&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">INTEREST</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">OF</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">S</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">ELLERS.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;Each Seller has the following proportionate interests in the</font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 63pt; MARGIN-RIGHT: -1pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">a.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Golden 8 Mining, LLC, 17/30ths, which is equal to 56.6666%;</font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 63pt; MARGIN-RIGHT: 49.7pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">c.<font id="TAB1" style="MARGIN-LEFT: 12pt"></font>AgX Resources, LLC, 2/30ths, which is equal to 6.6667%.</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 27pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.&#160;&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">PURCHASE</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">PR</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">I</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">C</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">E</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">AND</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">T</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">ERMS. </font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>The Buyer shall pay the Sellers the &#8220;Purchase Price,&#8221; being $30,000,000 in shares of Hecla Mining Company common stock (the &#8220;Hecla Shares&#8221;) which may be restricted as that term is defined under Rule 144) as soon as is commercially practicable, but not later than three (3) trading days after the Closing, with the total number of shares to be issued based on 90% of the volume-weighted average price (the &#8220;VWAP&#8221;) of Hecla Mining Company shares on the New York Stock Exchange (&#8220;NYSE&#8221;) for the twenty trading (20) days</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">immediately preceding and including December 2, 2011.&#160;&#160;Such payment will be made to EML, G8, and AgX in proportion to their respective interest as stated above (that is, $17 million to G8, $11 million to EML, and $2 million to AgX).</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">3</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">R</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">e</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">pr</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">e</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">s</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">e</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">n</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">ta</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">t</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">ion</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">s</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">an</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">d</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">War</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">r</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">ant</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">i</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">e</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">s</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">a</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">s</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">t</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">o</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">P</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">r</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">operti</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">e</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">s</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>As of the Effective Date, EML (severally and not jointly as to an 11% interest), G8 (severally and not jointly as to a 17% interest), and AgX (severally and not jointly as to a 2% interest) make the following representations and warranties to Buyer:</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 117pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;With respect to those Properties in which EML, G8 or AgX hold an interest under leases or other contracts: (i) each of them is in exclusive possession of such Properties; (ii) none of them has received any notice of default of any of the terms or provisions of such leases or other contracts; (iii) each of them has the authority under such leases or other contracts to perform fully its obligations under this Agreement; (iv) to each of their Knowledge, such leases and other contracts are valid and are in good standing; (v) none of them has any Knowledge of any act or omission or any condition on the Properties which could be considered or construed as a default under any such lease or other contract; and (vi) to the Knowledge of each of them, such Properties are free and clear of all encumbrances or defects in title except for those specifically identified.</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The representations and warranties set forth above shall survive the execution and delivery of any documents of Transfer provided under this Agreement. For a representation or warranty made to a person&#8217;s "Knowledge," the term "Knowledge" shall mean actual knowledge on the part of the officers, employees, and agents of the representing person or of facts that would reasonably lead to the indicated conclusions.</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 45pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">3.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">4</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">D</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">iscl</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">o</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">s</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">u</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">res</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Each of EML, G8 and AgX represents and warrants that it is unaware of any material facts or circumstances that have not been disclosed in this Agreement or the exhibits hereto, which should be disclosed to Buyer in order to prevent the representations and warranties in this Article from being materially misleading. Each of EML, G8 and AgX represents to the others that in negotiating and entering into this Agreement it has relied solely on its own appraisals and estimates as to the value of the Assets, as to the environmental condition of the Properties, and upon its own geologic and engineering interpretations related thereto.</font></div>

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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 81pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;RGS represents and warrants that it is unaware of any material facts or circumstances that have not been disclosed in this Agreement or the exhibits hereto which would lead to any representation or warranty of EML, G8 or AgX being inaccurate or incomplete in any material respect.&#160;&#160;RGS further represents and warrants that in negotiating and entering into this Agreement it has relied solely on its own appraisals and estimates as to the value of the Assets, as to the environmental condition of the Properties, and upon its own geologic and engineering interpretations related thereto</font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Buyer shall deliver to each of the Sellers its proportionate share of the Purchase</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Price as described in Paragraph 3, above.</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">c.&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Choice of La</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">w</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">.&#160;&#160;</font>This contract and all disputes arising hereunder shall be governed by the Governing Law and Forum Selection provision of the JV Agreement.</font></div>
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<td align="left" colspan="2" valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Rio Grande Silver, Inc. Strategics LLC, its Manager</font></font></td>
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<td width="20%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">STATE OF COLORADO</font></td>
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<td width="20%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">County of Mineral&#160;</font></td>
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<div>&#160;</div>
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<div style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The foregoing instrument was acknowledged before me this&#160;&#160;<font style="TEXT-DECORATION: underline">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">day of</font><font style="TEXT-DECORATION: underline">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2011 by </font></font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Brian F. Egolf as Manager of&#160;Emerald Mining &amp; Leasing, LLC.</font></div>

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<td width="25%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></td>
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<td width="20%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">STATE OF OKLAHOMA</font></td>
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<div style="TEXT-INDENT: 27pt">The foregoing instrument was acknowledged before me this&#160;&#160;<font style="TEXT-DECORATION: underline">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">day of</font><font style="TEXT-DECORATION: underline">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2011 by <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">James C. Brewer as Vice President and Manager of Golden 8 Mining, LLC.</font></font></div>
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<td width="20%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">STATE OF COLORADO</font></td>
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