Table of Contents
Index to Financial Statements

Registration No. 000-54136

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Amendment No. 2

to

FORM 10

GENERAL FORM FOR REGISTRATION OF SECURITIES

Pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934

 

 

CONTANGO ORE, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   27-3431051
(State or other jurisdiction of
incorporation or organization)
  (IRS Employer
Identification No.)

3700 Buffalo Speedway, Suite 960

Houston, Texas 77098

(Address of principal executive offices)

(713) 960-1901

(Registrant’s telephone number, including area code)

 

 

Securities to be registered pursuant to Section 12(b) of the Act:

 

Title of each class to be so registered

  

Name of each exchange on which

each class is to be registered

NONE

   N/A

Securities registered pursuant to Section 12(g) of the Act:

COMMON STOCK, $0.01 par value

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   ¨   (Do not check if a smaller reporting company)    Smaller reporting company   x

 

 

 


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Item 1.

   BUSINESS      1   

Item 1A.

   RISK FACTORS      10   

Item 2.

   FINANCIAL INFORMATION      18   

Item 3.

   PROPERTIES      20   

Item 4.

   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT      43   

Item 5.

   DIRECTORS AND EXECUTIVE OFFICERS      44   

Item 6.

   EXECUTIVE COMPENSATION      45   

Item 7.

   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE      48   

Item 8.

   LEGAL PROCEEDINGS      48   

Item 9.

   MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS      48   

Item 10.

   RECENT SALES OF UNREGISTERED SECURITIES      49   

Item 11.

   DESCRIPTION OF REGISTRANT’S SECURITIES TO BE REGISTERED      49   

Item 12.

   INDEMNIFICATION OF DIRECTORS AND OFFICERS      50   

Item 13.

   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA      50   

Item 14.

   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE      50   

Item 15.

   FINANCIAL STATEMENTS AND EXHIBITS      51   

All references to the “Company”, “CORE”, “we”, “our” and “us” used in this Registration Statement on Form 10 (“Form 10”) are to Contango ORE, Inc.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Registration Statement contains forward-looking statements regarding the Company that are based on the Company’s current expectations and includes statements regarding estimates of future production, future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as “expects”, “projects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or stating that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, the risks associated with exploring for gold and rare earth materials (for example, risks involving unanticipated geological conditions related to exploring and mining; the uncertainty of any reserve estimates; the uncertainty of estimates and projections relating to any future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as the arctic freeze, extremely cold temperatures and natural disasters); uncertainties as to the availability and cost of financing; fluctuations in supply and demand for gold and rare earth elements; inability of our management team to execute its plans to meet its goals, and the possibility that government policies may change or governmental approvals may be delayed or withheld. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made, but they are open to a wide range of uncertainties and business risks, including the risks described under “Item 1A – Risk Factors.” The Company does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.


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Item 1. BUSINESS.

General

The Company was formed on September 1, 2010 as a Delaware corporation registered to do business in Alaska for the purpose of engaging in exploration in the State of Alaska for (i) gold and associated minerals and (ii) rare earth elements. The Company is a wholly-owned subsidiary of Contango Oil & Gas Company (“Contango”).

Contango Mining Company (“Contango Mining”) was formed on October 15, 2009 as a Delaware corporation registered to do business in Alaska for the purpose of engaging in exploration in the State of Alaska for (i) gold and associated minerals and (ii) rare earth elements. Contango Mining is also a wholly-owned subsidiary of Contango. The Company will acquire properties held by Contango Mining, will succeed to the business of Contango Mining, and will assume all assets and liabilities of Contango Mining. As a result, references that describe the operations of the Company, include the operations of Contango Mining.

Contango Mining holds leasehold interests in approximately 647,000 acres from the Tetlin Village Council, the council formed by the governing body for the Native Village of Tetlin, an Alaska Native Tribe (“Tetlin Lease”) and holds 12,000 acres in unpatented mining claims from the State of Alaska for the exploration of gold and associated minerals (together with the Tetlin Lease, the “Gold Properties”). Contango Mining also holds interests in and to 3,520 acres in unpatented Federal mining claims and 97,280 acres in unpatented mining claims from the State of Alaska for the exploration of rare earth elements (the “REE Properties”, and together with the Gold Properties, the “Properties”). Contango Mining acquired a 50% interest in the Properties from Juneau Exploration, L.P., (“JEX”) in exchange for $1 million and a 1% overriding royalty interest under a Joint Exploration Agreement dated as of September 29, 2009 (the “Joint Exploration Agreement”). As of September 15, 2010, Contango Mining acquired the remaining 50% interest in the Properties in exchange for increasing the overriding royalty interest in the Properties payable to JEX to 3%, and JEX and Contango Mining terminated the Joint Exploration Agreement.

Distribution of Company Stock

The Company anticipates that Contango will distribute the Company’s common stock to Contango’s stockholders of record as of October 15, 2010, promptly after the effective date of this Form 10 (the “Distribution”) on the basis of one share of common stock for each ten (10) shares of Contango’s common stock then outstanding. Immediately prior to the Distribution, Contango Mining will assign the Properties and related assets and liabilities to Contango, which will contribute the Properties and related assets together with $3.5 million in cash to the Company pursuant to the terms of a Contribution Agreement between Contango and the Company (“Contribution Agreement”).

Our Business

We are a Houston-based company, whose primary business is to explore in the State of Alaska for (i) gold ore and associated minerals, and (ii) rare earth elements. We expect to initially have three part time employees.

We have leased or have control over properties in the State of Alaska totaling approximately 759,800 acres for the exploration of gold and associated minerals and rare earth elements. We anticipate that from time to time we will acquire additional acreage in Alaska for the exploration of gold and associated minerals and rare earth elements through leases or obtaining additional mining claims. Our exploration strategy is predicated upon two core beliefs: (1) that the only competitive advantage in a commodity-based business is to be among the lowest cost producers and (2) that virtually all the mining industry’s value creation occurs through the discovery of mineral deposits that can be developed to the state of a commercially viable producing mine. While we do not

 

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have previous experience in the gold or rare earth element industries, we plan to focus our business strategy on the following elements:

Using our limited capital availability to increase our reward/risk potential on selective prospects . We will concentrate our risk investment capital in our prospects in Alaska. We have leased approximately 647,000 acres and control another 12,000 acres consisting of 126 unpatented State of Alaska mining claims in Eastern Alaska for the exploration of gold and associated minerals. We also own 3,520 acres consisting of 176 unpatented Federal mining claims and 97,280 acres consisting of 608 unpatented State of Alaska mining claims for the exploration of rare earth elements.

Exploration prospects are inherently risky as they require large amounts of capital with no guarantee of success. Furthermore, we may never achieve a competitive advantage in the conduct of our business, since it is unlikely that our Properties will have commercially viable mineral deposits. Should the Properties prove to have known deposits, or mineral ore, we will be required to develop our own mining operations or contract with third parties to mine our mineral ore. We may only become a low cost producer if the mineral ore is of high quality and the cost of the infrastructure necessary to mine the mineral ore is low relative to other producers, including those competitors located in China if rare earth elements are mined.

Our strategic initiatives are to undertake cost efficient and effective exploration activities to discover mineralization and potential mineral reserves which may enhance the value of our properties. If we are successful in our exploration activities, we may consider a joint venture or sales of our Properties to qualified mining companies. Under the terms of the Contribution Agreement, Contango will fund the Company with $3.5 million to pay for exploration and development costs of our gold and rare earth element prospects.

Alliance with JEX . JEX is a private company formed primarily for the purpose of assembling natural gas and oil prospects. Contango has previously contracted with JEX to conduct exploration activities for oil and gas reserves primarily in the Gulf of Mexico. JEX has been responsible in securing and negotiating the Tetlin Lease and assisting in obtaining the Properties and initially engaged Avalon Development Corporation, an Alaska-domiciled domestic corporation (“Avalon”) to conduct mineral exploration activities of the Tetlin Properties. JEX will continue to assist us in acquiring additional acreage in Alaska and provide other consulting services to the Company. We do not have a written agreement with JEX which contractually obligates them to provide us with their services. We anticipate providing JEX with an additional overriding royalty interest in property where JEX assists in the acquisition of such property.

Consulting Services Provided by Avalon. We have entered into a Professional Services Agreement with Avalon to conduct certain geological consulting services and exploration activities on the Properties. Avalon is a Fairbanks, Alaska based mineral exploration consulting firm, which has conducted mineral exploration in Alaska since 1985. Avalon’s mineral exploration services include pre-field planning, in-progress evaluation/modification and post-field critical review. Avalon’s exploration team has identified or conducted discovery drilling on several gold deposits in Alaska and has completed digital geographic information systems (“GIS”) compilations of the Tintina Gold Belt, a regional-scale mineral province stretching from southwestern Alaska to the southern Yukon Territory. Avalon also has experience exploring for copper, nickel and platinum group elements (“Cu-Ni-PGE”) deposits and also created a comprehensive GIS compilation of PGE prospects in Alaska, an internally-owned database that contains data on over 200 PGE occurrences in Alaska. In 2002, Avalon expanded its digital database to the identification and acquisition of rare earth element prospects in Alaska. Avalon will continue to work in conjunction with the Company to identify new properties and will conduct the initial exploration for such properties.

If any exploratory work on the Properties should prove successful, the Company could develop a wholly-owned mining operation entity to conduct mining operations, contract with mining companies to extract mineral ore from our Properties or enter into a joint venture with or sale of our Properties to an established mining company.

 

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Structuring Incentives to Drive Behavior . We believe that equity ownership aligns the interests of our consultants, executives and directors with those of our stockholders. Immediately prior to the Distribution, the Company’s directors and officers will receive restricted shares of common stock equal to 4.5% of the aggregate shares of common stock being distributed to the stockholders of Contango. The Company’s directors and officers initially will not receive any cash compensation for their work for the Company. Following the Distribution, the Company’s directors and executive officers will beneficially own or have voting control over approximately 22% of our common stock. In addition, our major consultant for geological and exploration activities, Avalon will receive restricted shares of our common stock equal to 1.5% of the aggregate shares of common stock being distributed to the stockholders of Contango. All shares of restricted stock will vest over three years, beginning with the one-year anniversary of the date the shares were granted.

Maximize Value Creation per Share . We believe that the primary objective of a business is to maximize value creation per share. As a result, we intend to limit the number of new shares issued in any future fund raising and keep grants of stock options to our directors, officers and Avalon to a minimum.

We are an exploration stage company, and none of the Properties that we own or control contain any known reserves or mineralized material. The Properties are at an early stage of exploration, and even if mineral reserves are discovered, they may not be commercially viable. A significant amount of additional work and at least another two years is likely required in the exploration of our Properties before any determination as to the economic feasibility of a mining venture can be made. Due to the harsh climate in Alaska, our work months are restricted to May through October.

Exploration and Mining Property

Exploration and mining rights in Alaska may be acquired in the following manner: public lands, private fee lands, unpatented Federal or State of Alaska mining claims, patented mining claims, and tribal lands. The primary sources for acquisition of these lands are the United States government, through the Bureau of Land Management and the United States Forest Service, the Alaskan state government, tribal governments, and individuals or entities who currently hold title to or lease government and private lands.

The Federal government owns public lands that are administered by the Bureau of Land Management or the United States Forest Service. Ownership of the subsurface mineral estate can be acquired by staking a twenty (20) acre mining claim granted under the General Mining Law of 1872, as amended (the “General Mining Law”). The Federal government still owns the surface estate even though the subsurface can be controlled with a right to extract through claim staking. Private fee lands are lands that are controlled by fee-simple title by private individuals or corporations. These lands can be controlled for mining and exploration activities by either leasing or purchasing the surface and subsurface rights from the private owner. Patented mining claims are claims that were staked under the General Mining Law, and through application and approval the owners were granted full private ownership of the surface and subsurface estate by the Federal government. These lands can be acquired for exploration and mining through lease or purchase from the owners. In order to acquire a patent, an applicant must, among other things, prove that improvements have been made on the land of not less than $500, pay a fee of five dollars ($5) per acre, and identify and describe the mineral deposit located in the land. Unpatented mining claims located on public land owned by another entity can be controlled by leasing or purchasing the claims outright from the owners.

With respect to unpatented mining claims, the Federal or applicable state government continues to hold the fee interest in real property while allowing private parties to stake claims for exploration, development and commercial extraction of minerals with rights of ingress and egress on the real property. Unpatented claims give the claimant the exclusive right to explore for and to develop the underlying minerals and use the surface for such purpose. However, the claimant does not own title to either the minerals or the surface, and the claim is subject to annual assessment work requirements and the payment of annual rental fees which are established by the governing authority of the land on which the claim is located. Unpatented mining claims are generally

 

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considered to be subject to greater title risk than other real property interests because the validity of unpatented mining claims is often uncertain, due to the complex Federal and state laws and regulations that supplement the General Mining Law. Also, unpatented mining claims and related rights, including rights to use the surface are subject to challenges by third parties or contests by the Federal or applicable state government. In addition, there are few public records that definitively determine the issues of validity and ownership of unpatented state mining claims. Our mining claims on land belonging to the State of Alaska have no opportunity to be patented. Rights to deposits of minerals on Alaska state land that is open to claim staking may be acquired by discovery, location and recording as prescribed in Alaska state statutes (AS 38.05.185 – 38.05.280). The State of Alaska requires holders of unpatented mining claims to perform annual assessment work and pay an annual fee on the claims in order to maintain the claimant’s title to the mining rights in good standing. State of Alaska unpatented mining claims are subject to a title reservation of 3% net profits royalty for all mineral production on net mining income of $100,000 or more. Mining claims located on State of Alaska lands cannot be deeded to the claimant.

Tribal lands are those lands that are under control by sovereign Native American tribes or Alaska Native corporations established by the Alaska Native Claims Settlement Act of 1971 (ANSCA). Areas that show promise for exploration and mining can be leased or joint ventured with the tribe controlling the land.

State of Alaska Exploration

Contango Mining was formed October 15, 2009 for the purpose of engaging in mineral exploration in Alaska. JEX entered into the Tetlin Lease in the State of Alaska with the Tetlin Village Council effective as of July 15, 2008 in order to conduct exploration activities for gold ore and other associated minerals and sold a 50% interest in the Tetlin Lease to Contango Mining in exchange for $1 million and a 1% overriding royalty interest. Pursuant to the Joint Exploration Agreement, Contango Mining was obligated to fund the next $2 million of exploration and related work expenditures on the Tetlin Properties. As of September 15, 2010 we acquired the remaining 50% interest in the Tetlin Lease from JEX in exchange for increasing the overriding royalty interest held by JEX to three percent (3%). The terms of each transaction, including price, between JEX and Contango Mining were based upon arm’s-length negotiations. Following the Distribution, the Company will have an interest in approximately 759,800 acres, 659,000 acres upon which predecessors of the Company commenced conducting gold exploration activities beginning in 2009, and 100,800 acres upon which the Company will conduct rare earth mineral exploration activities. See Item 3 – “Properties” for additional information regarding the Properties.

JEX originally entered into the Tetlin Lease to explore for oil, gas and other mineral reserves. In conducting preliminary drilling work on the Tetlin Properties, JEX began to explore the Tetlin Properties for mineral deposits and engaged Avalon to continue exploratory drilling activities. We believe JEX expended approximately $1 million on exploratory activities and related work before JEX sold a 50% leasehold interest in the Tetlin Properties to Contango Mining in exchange for $1 million and a 1% overriding royalty interest.

With respect to the acquisition of our REE Properties, Contango developed an interest in rare earth elements because of the increasing demand for products using rare earth elements, and based upon the preliminary surveys conducted by the United States Geological Survey and subsequently reviewed and analyzed by Avalon, Contango and JEX staked state and Federal mining claims and has engaged Avalon to conduct preliminary exploratory activities for rare earth elements in Alaska.

Gold Mining

In 2009, exploration activities were conducted over our leasehold interests in Alaska, which consists of approximately 647,000 acres leased from the Tetlin Village Council (the “Tetlin Properties”), 11,360 acres of State of Alaska unpatented mining claims near Tok, Alaska, which are contiguous with the Tetlin Properties and another 640 acres of State of Alaska unpatented mining claims that are non-contiguous with the Tetlin Properties but are located on the same trend of mineral ore. In our 2009 exploration program, we collected a total of 1,096

 

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rock, soil, pan concentrate and stream silt samples from our Tetlin Properties. Of this total, 348 samples showed measurable amounts of gold with 30 samples showing measured gold of 500 parts per billion (“ppb”) or higher.

In our 2010 exploration program, we collected a total of 1,884 rock, soil, pan concentrate and stream silt samples from our Tetlin Properties. Of this total, 910 samples showed measurable amounts of gold with 54 samples showing gold concentrations greater than 500 ppb. We also ran ground geophysical surveys with induced polarization (IP) which measures the conductivity/resistivity of underlying sub-surface rocks. Conductivity indicates the presence of metals. Based on our geology and IP results, we are reviewing our options for our 2011 exploration program. Our current plan is to fly airborne magnetic, electromagnetic, and radiometrics early next summer.

Gold is used for jewelry, coinage and bullion as well as various industrial and electronic applications. Gold can be readily sold on numerous markets throughout the world. Benchmark prices are generally based on the average London Bullion Market Association price for a specified month near the month of shipment.

Rare Earth Elements

The term “rare earth” is actually a misnomer. Rare earth elements are not in fact rare, as they are found in low concentrations throughout the earth’s crust. There are relatively few locations, however, where rare earth elements (“REEs”) are currently being economically mined and processed outside of China. Our decision to explore for REEs is based on our belief that REEs will become increasingly valuable as the world moves to embrace alternative “green” forms of energy such as wind turbines and advanced batteries which require REEs for component parts.

REEs have unique properties that have applications in several technologies, including:

 

   

Clean-Energy Technologies : hybrid and electric vehicles, and wind turbines

 

   

Defense and Homeland Security Applications : aircraft control, lasers, global positioning systems, radar, sonar, guided missiles and smart bombs

 

   

High-Technology Applications : microwaves, MRI testing, color televisions, motion picture studio lighting and projection

Demand for REEs is expected to increase due to increased demand for existing products that utilize rare earth elements as well as continued development of additional technologies that require application of REEs. Currently, China accounts for over 90% of the global supply for REEs and the oxides produced from REEs, and the Chinese government has begun to restrict exports of REEs and require that manufacturing of rare earth metals take place within China.

Our decision to focus our rare earth element exploration efforts in Alaska is based, in part, upon several surveys performed by the United States Geological Survey (the “USGS”) in the 1970s and 1980s. The two primary sources of public-sector geochemical data which we and Avalon used to identify potential mineral prospects are the Alaska Mineral Resource Appraisal Program (“AMRAP”) and the National Uranium Resource Evaluation program (“NURE”), both of which were conducted in Alaska in the 1970s and 1980s. The AMRAP included geologic mapping, airborne geophysics and geochemical sampling. The program did not analyze for gold during the initial study, although analyses for important gold pathfinder elements such as arsenic, bismuth and tungsten were completed. These programs were run on a quadrangle by quadrangle basis resulting in multiple folios published by the USGS over multiple years. Geochemical data from the AMRAP and other USGS programs has been compiled in a digital database referred to as the RASS database (Rock Analysis Storage System, Open File Report 99-433), available from the USGS at http://pubs.usgs.gov/of/1999/of99-433/. The NURE program was funded by the United States Department of Energy primarily as a geochemical study to define new uranium sources in the United States. The original NURE samples were collected and analyzed in the

 

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1970s but were re-analyzed in the late 1990s using more modern analytical techniques. These digital data are available in Open File Report 97-492 from the USGS at http://pubs.usgs.gov/of/1997/ofr-97-0492/. The surveys we and Avalon examined indicated anomalous uranium samples as well as anomalous zirconium, beryllium, tantalum, and niobium, which are commonly found near deposits of rare earth elements.

In 2011 we expect to begin exploratory work for rare earth elements over the 100,800 acres we control in Alaska. Our exploration activities will include the following: geological surveying, geochemical sampling, geophysical surveying, geochemical evaluation for rare earth elements and two-dimensional and three-dimensional electromagnetic exploration in order to determine the existence and location of any rare earth elements.

We hold the following Federal unpatented mining claims: (i) 49 unpatented mining claims near Stone Rock Bay, Alaska, totaling 980 acres, and (ii) 127 unpatented mining claims near Salmon Bay, totaling 2,540 acres, which are located near Bokan Mountain. We also control 608 State of Alaska unpatented mining claims, totaling 97,280 acres, located in the interior of Alaska. The Company believes that there has been limited exploration targeted specifically at REEs in Alaska historically, with the exception of Bokan Mountain, located on the Prince of Wales Island in Southeast Alaska.

REEs consist of the 15 elements with atomic numbers 57 to 71 (the “Lanthanide Series”), plus the elements Scandium (atomic number 21) and Yttrium (atomic number 39). REEs are separated into two categories, light rare earths (“LREEs”, consisting of atomic numbers 57-62), and heavy rare earths (“HREEs”, consisting of atomic numbers 63-71, plus Yttrium (atomic number 39)).

The following table ranks the REEs in the order of their relative abundance in the earth’s crust:

 

Rare-Earth Element, Symbol

   Abundance
(parts per million)
     Atomic
Number
 

Cerium, Ce

     46.0         58   

Yttrium, Y

     28.0         39   

Neodymium, Nd

     24.0         60   

Lanthanum, La

     18.0         57   

Samarium, Sm

     6.5         62   

Gadolinium, Gd

     6.4         64   

Praseodymium, Pr

     5.5         59   

Scandium, Sc

     5.0         21   

Dysprosium, Dy

     4.5         66   

Ytterbium, Yb

     2.7         70   

Erbium, Er

     2.5         68   

Holmium, Ho

     1.2         67   

Europium, Eu

     1.1         63   

Terbium, Tb

     0.9         65   

Lutetium, Lu

     0.8         71   

Thulium, Tm

     0.2         69   

Promethium, Pm

     0.0         61   

Consulting Services provided by Avalon Development Corporation

The Company is a party to a Professional Services Agreement with Avalon to provide certain geological consulting services and exploration activities with respect to the Properties. In connection with the Distribution, the Company intends to enter into an Amended and Restated Professional Services Agreement with Avalon (the “PSA”). Pursuant to the PSA, Avalon will continue to provide certain geological consulting services and exploration activities. The Company pays Avalon on a per diem basis and reimburses Avalon for its expenses

 

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pursuant to the PSA. As additional compensation, Avalon will also receive restricted shares of common stock equal to 1.5% of the aggregate shares of common stock being distributed to the stockholders of Contango. The shares will vest over three years beginning with the one-year anniversary of the date the shares were granted. Avalon has conducted mineral exploration in Alaska since 1985. Its team of engineers and geoscientists combined with its geographic information systems (GIS) database allows Avalon to synthesize existing geological, geochemical and geophysical data and identify specific target areas for ground evaluation and/or acquisition. Avalon expects to assign approximately 5 engineers and geologists to conduct exploration activities on the Properties. Work schedules will vary widely from a 7 day per week, 30-day minimum schedule for field related geologists and geological engineers to 40-hours per week schedules for geographic information system and management staff. Because the Company does not have experience exploring or evaluating gold or rare earth element prospects in Alaska, we will rely on Avalon’s experience in the State of Alaska to determine whether our exploration activities will be likely to develop commercially viable deposits.

Marketing and Pricing

Should our exploratory drilling activities prove to be successful, the Company expects to mine ore and derive its revenue principally from the sale of gold and associated minerals or rare earth elements. We may also enter into joint ventures or sell some or all of our Properties to qualified mining companies. We do not currently have a market for any minerals that may be derived from our Properties. As a result, the Company’s revenues are expected to be determined, to a large degree, by the success of our exploration and any subsequent mining activities and by prevailing prices for gold and rare earth elements. Market prices are dictated by supply and demand, and the Company cannot predict or control the price it will receive for gold ore and rare earth elements.

Adverse Climate Conditions

Climate conditions will affect the Company’s ability to conduct exploration activities and mine any ore from its Properties in Alaska. While exploratory drilling and related activities may only be conducted from May to October on certain of our Properties, the Company believes development work and any subsequent mining may be conducted year-round.

Competition

We currently face strong competition for the acquisition of exploration-stage properties as well as extraction of any minerals in Alaska. Numerous larger mining companies actively seek out and bid for mining prospects as well as for the services of third party providers and supplies, such as mining equipment and transportation equipment. Our competitors in the exploration, development, acquisition and mining business will include major integrated mining companies as well as numerous smaller mining companies, almost all of which have significantly greater financial resources and in-house technical expertise. In addition, we will compete with others in efforts to obtain financing to explore our mineral properties.

While there are few rare earth mining companies in the United States, the global rare earth mining and processing markets are competitive. China currently accounts for over 90% of rare earth mineral production and manufacturing, and should our rare earth mining efforts prove to be successful, we may not be able to implement the processing technologies and capabilities that our Chinese counterparts have already established. Our Chinese competitors may have greater financial resources, as well as other strategic advantages to maintain, improve and expand their mining programs. In addition, Chinese domestic economic policies may allow domestic companies to produce at relatively lower costs.

Competitive conditions may be substantially affected by various forms of legislation and regulation considered from time to time by the government of the United States and the State of Alaska, as well as factors that we cannot control, including international political conditions, overall levels of supply and demand for minerals, and currency fluctuations.

 

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Government Regulation

Our mineral exploration activities are generally affected by various laws and regulations, including environmental, conservation, tax and other laws and regulations relating to the exploration of minerals. Various Federal and Alaskan laws and regulations often require permits for exploration activities and also cover extraction of minerals. In addition, our Tetlin Properties are located on land leased from the Tetlin Village Council. Federally recognized Native American tribes are independent governments, with sovereign powers, except as those powers may have been limited by treaty or by the United States Congress. Such tribes maintain their own governmental systems and often their own judicial systems and have the right to tax, and to require licenses and to impose other forms of regulation and regulatory fees, on persons and businesses operating on their lands. As sovereign nations, federally recognized Native American tribes are generally subject only to federal regulation. States do not have the authority to regulate them, unless such authority has been specifically granted by Congress, and state laws generally do not directly apply to them and to activities taking place on their lands, unless they have a specific agreement or compact with the state or Federal government allowing for the application of state law. We will continue to use our best efforts to ensure that the Company is in compliance with all applicable laws and regulations but the denial of permits required to explore for or mine ore may prevent us from realizing revenues arising from the presence of minerals on our properties.

Environmental Regulation

Mining operations are subject to local, state and Federal regulation governing environmental quality and pollution control, including air quality standards, greenhouse gas, waste management, reclamation and restoration of properties, plant and wildlife protection, handling and disposal of radioactive substances, and employee health and safety. Extraction of mineral ore is subject to stringent environmental regulation by state and federal authorities, including the Environmental Protection Agency. Such regulation can increase the cost of planning, designing, installing and operating mining facilities or otherwise delay, limit or prohibit planned operations.

Significant fines and penalties may be imposed for failure to comply with environmental laws. Some environmental laws provide for joint and several strict liability for remediation of releases of hazardous substances. In addition, we may be subject to claims alleging personal injury or property damage as a result of alleged exposure to hazardous substances.

Some REE deposits contain naturally occurring radioactive substances, such as thorium and uranium. The mining of REEs that contain such radioactive substances involves the handling and disposal of such substances, and accordingly we may be subject to extensive safety, health and environmental laws, regulations and permits regarding radioactive substances. Significant costs, obligations or liabilities may be incurred with respect to such requirements, and any future changes in such requirements (or the interpretation or enforcement thereof) may have a material adverse effect on our business or results of operations. Furthermore, our drilling programs may also use hazardous materials and generate hazardous and naturally occurring radioactive wastes. These and similar unforeseen impacts that our operations may have on the environment, as well as human exposure to hazardous or radioactive materials or wastes associated with our operations, could have a material adverse effect on our business, reputation, results of operation and financial condition.

The Federal Mine Safety and Health Act of 1977 and regulations promulgated thereunder as well as the State of Alaska Department of Labor and Workforce Development impose a variety of health and safety standards on numerous aspects of employee working conditions related to mineral extraction and processing operations, including the training of personnel, operating procedures and operating equipment. In addition, the Company may be subject to additional state and local mining standards. The Company believes that it currently is in compliance with applicable mining standards; however, we cannot predict whether changes in standards or the interpretation or enforcement thereof will have a material adverse effect on our business, financial condition or otherwise impose restrictions on our ability to conduct mining operations.

 

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Federal legislation and regulations adopted and administered by the U.S. Environmental Protection Agency, Forest Service, Bureau of Land Management, Fish and Wildlife Service, Mine Safety and Health Administration, and other federal agencies, legislation such as the Federal Clean Water Act, Clean Air Act, National Environmental Policy Act, Endangered Species Act, and Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and various laws and regulations administered by the State of Alaska, have a direct bearing on exploration and mining operations conducted in Alaska. These regulations will make the process for preparing and obtaining approval of a plan of operations much more time-consuming, expensive, and uncertain. Plans of operation will be required to include detailed baseline environmental information and address how detailed reclamation performance standards will be met. In addition, all activities for which plans of operation are required will be subject to a new standard of review by the U.S. Bureau of Land Management, which must make a finding that the conditions, practices or activities do not cause substantial irreparable harm to significant scientific, cultural, or environmental resource values that cannot be effectively mitigated.

CERCLA generally imposes joint and several strict liability for costs of investigation and remediation and for natural resource damages, with respect to the release of hazardous substances (as designated under CERCLA) into the environment. CERCLA also authorizes the EPA, and in some cases, third parties, to take action in response to threats to the public health or the environment and to seek to recover from the potentially responsible parties the costs of such action. Our mining operations may generate wastes that fall within CERCLA’s definition of Hazardous Substances.

Employees

The Company expects to have three part-time employees. Mr. Peak is the Chairman, Chief Executive Officer and President of the Company and will be responsible for the management of the Company. Mr. Castro is the Vice President, Chief Financial Officer and Secretary of the Company and will be responsible for the financial affairs of the Company. Ms. Makalskaya is the Vice President and Controller of the Company and will be responsible for the Company’s accounting. The Company expects that Mr. Peak will devote seven (7) hours per week to the Company’s business and Mr. Castro and Ms. Makalskaya will each devote fifteen (15) hours per week to the Company’s business. The Company also expects to use the services of independent consultants and contractors, including JEX, to perform various professional services, including land acquisition, legal, environmental and tax services. JEX will have two employees who are a land man and an engineer, respectively, and will devote an aggregate of 8 hours per week to the Company’s business. In addition, the Company expects to utilize the services of independent contractors, including Avalon, to perform geological, exploration and drilling operation services and independent third party engineering firms to evaluate any reserves.

Available Information

You may read and copy all or any portion of this registration statement and the exhibits and schedules that were filed with this registration statement without charge at the office of the Securities and Exchange Commission (the “SEC”) in Public Reference Room, 100 F Street NE, Washington, DC, 20549. Copies of the registration statement may be obtained from the SEC at prescribed rates from the Public Reference Section of the SEC at the above address. Information regarding the operation of the public reference rooms may be obtained by calling the SEC at 1-800-SEC-0330. In addition, registration statements and certain other filings made with the SEC electronically are publicly available through the SEC’s website at http://www.sec.gov. This registration statement, including all exhibits and amendments to the registration statement, has been filed electronically with the SEC.

Upon effectiveness of this registration statement, we will become subject to the information and periodic reporting requirements of the Securities and Exchange Act of 1934, as amended, and, in accordance therewith, will file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information will be available for inspection and copying at the public reference facilities and web site of the SEC.

 

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We intend to furnish our stockholders with annual reports on Form 10-K containing audited consolidated financial statements and make available quarterly reports for the first three fiscal quarters of each fiscal year containing unaudited interim consolidated financial information.

 

Item 1A. RISK FACTORS

In addition to other information set forth elsewhere in this Registration Statement, you should carefully consider the following factors when evaluating the Company. An investment in the Company is subject to risks inherent in our business. The trading price of the shares of the Company is affected by the performance of our business relative to, among other things, competition, market conditions and general economic industry conditions. The value of an investment in the Company may decrease, resulting in loss. The risk factors below are not all inclusive.

Risks Relating to Our Business

We have no revenue to date from our mining properties, which may negatively impact our ability to achieve our business objectives.

Since the acquisition of the Properties in the fall of 2009 and spring of 2010, we and our predecessors have conducted only very limited exploration activities and to date have not, discovered any commercially viable mineral deposits. Our ability to become profitable will be dependent on the receipt of revenues from the extraction of minerals greater than our operational expenses. We and our predecessors have carried on our business of exploring our Properties at a loss since our inception and expect to continue to incur losses unless and until such time as one of our Properties enters into commercial production and generates sufficient revenues to fund our continuing operations. The amounts and timing of expenditures will depend on the progress of ongoing exploration, the results of consultants’ analysis and recommendations, the rate at which operating losses are incurred, and other factors, many of which are beyond our control. Whether any mineral deposits we discover would be commercially viable depends on a number of factors, which include, without limitation, the particular attributes of the deposit, market prices for the minerals, and governmental regulations. If we cannot discover commercially viable deposits or commence actual mining operations, we may never generate revenues and will never become profitable.

The Properties in which we have an interest do not have any proven or probable reserves and we may never identify any commercially exploitable mineralization.

None of our Properties have any proven or probable reserves. To date, we have engaged in only limited preliminary exploration activities on the Properties, and our exploration activities of our REE Properties are based upon prior preliminary surveys conducted by the Federal government. Accordingly, we do not have sufficient information upon which to assess the ultimate success of our exploration efforts. There is no assurance that we may ever locate any mineral resources on our Properties or if we find mineral resources, they may not be in economic quantities. Additionally, even if we find minerals in sufficient quantities to warrant recovery, such recovery may not be economically profitable. Mineral exploration is highly speculative in nature, involves many risks and is frequently non-productive. Unusual or unexpected geologic formations and the inability to obtain suitable or adequate machinery, equipment or labor are risks involved in the conduct of exploration programs. If we do not establish reserves, we will be required to curtail or suspend our operations, in which case the market value of our common stock will decline, and you may lose all of your investment.

The probability of an individual prospect ever having reserves is extremely remote.

The probability of finding economic mineral reserves on any of our Properties is extremely small. It is common to spend millions of dollars on a potential project and complete many phases of exploration and still not obtain mineral reserves that can be economically exploited. Therefore, the chances of our Properties ever having mineral reserves and recovering any funds spent on exploration is extremely remote.

 

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Our Properties are located in the remote regions of Alaska and exploration activities may be limited by climate and limited access and existing infrastructure.

Our focus is on the exploration of our Properties in the State of Alaska. The arctic climate limits exploration activities to May to October. In addition, the remote location of our Gold Properties as well as our REE Properties may limit access and increase exploration expenses. Higher costs associated with exploration activities and limitation on the annual periods in which we can carry on exploration activities will increase the costs and time associated with our planned exploration activities and could negatively affect the value of our Properties and securities.

We are highly dependent on the technical services provided by our consultant, Avalon, including the operation and maintenance of the Properties and exploratory drilling activities, and could be seriously harmed if Avalon terminated the services with us or became otherwise unavailable.

Because we expect to have only three part-time employees, none of whom are mineral geoscientists or have experience in the mining industry, we will depend upon our consultant, Avalon, for the success of our exploration projects and expect to remain so for the foreseeable future. Our ability to continue conducting exploration activities is in large part dependent upon the efforts of our consultant. As a result, we have little control over the exploratory operations on the Properties. In addition, highly qualified explorationists and engineers are difficult to attract and retain. As a result, the loss of the services of our consultant could have a material adverse effect on us and could prevent us from pursuing our business plan.

We are dependent on the services provided by JEX, including the acquisition of additional acreage, and could be seriously harmed if JEX terminated its services or became otherwise unavailable.

We are dependent upon JEX for assistance in acquiring additional acreage for our exploration projects in Alaska and expect to remain so for the foreseeable future. We do not have a written agreement with JEX which contractually obligates them to provide us with their services in the future. As a result, the loss of the services of JEX could have a material adverse effect on us and could prevent us from pursuing our business plan.

Our ability to successfully execute our business plan is dependent on our ability to obtain adequate financing.

Our business plan, which includes the drilling of exploration prospects, will require substantial capital expenditures. We will require financing to fund our planned explorations and will soon be required to raise additional capital. Our ability to raise capital will depend on many factors, including the status of our exploration program and the status of various capital and industry markets at the time we seek such capital. Accordingly, we cannot be certain that financing will be available to us on acceptable terms, if at all. In the event additional capital resources are unavailable, we may be required to curtail our exploration and development activities or be forced to sell some of our Properties in an untimely fashion or on less than favorable terms.

Concentrating our capital investment in the State of Alaska increases our exposure to risk.

We expect to focus our capital investments in gold and rare earth mineral prospects in the State of Alaska. However, our exploration prospects in Alaska may not lead to any revenues or we may not be able to drill for mineral deposits at anticipated finding and development costs due primarily to financing and environmental uncertainties. Should we be able to make an economic discovery on our Properties, we would then be solely dependent upon a single mining operation for our revenue and profits.

We will rely on the accuracy of the estimates in reports provided to the Company by outside consultants and engineers.

We have no in house mineral engineering capability, and therefore will rely on the accuracy of reserve reports provided to us by our independent third party consultants. If those reports prove to be inaccurate, our

 

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financial reports could have material misstatements. Further, we will use the reports of our independent consultants in our financial planning. If the reports prove to be inaccurate, we may also make misjudgments in our financial planning.

Exploration activities involve a high degree of risk, and our participation in exploratory drilling activities may not be successful.

Our future success will largely depend on the success of our exploration drilling program. Participation in exploration drilling activities involves numerous risks, including the significant risk that no commercially marketable minerals will be discovered. The mining of minerals and the manufacture of mineral products involves numerous hazards, including:

 

   

Ground or slope failures;

 

   

Pressure or irregularities in formations affecting ore or wall rock characteristics;

 

   

Equipment failures or accidents;

 

   

Adverse climate conditions;

 

   

Compliance with governmental requirements and laws, present and future;

 

   

Shortages or delays in the availability and delivery of equipment; and

 

   

Lack of adequate infrastructure, including access to roads, electricity and available housing.

Poor results from our drilling activities would materially and adversely affect our future cash flows and results of operations.

We have no assurance of title to our Properties.

We hold approximately 109,280 acres in the form of State of Alaska unpatented mining claims, for both gold and REE exploration. We also hold approximately 3,520 acres in unpatented U.S. Federal mining claims. Unpatented mining claims are unique property interests, in that they are subject to the paramount title of, the State of Alaska or the U.S. Federal government, as applicable, and rights of third parties to uses of the surface within their boundaries, and are generally considered to be subject to greater title risk than other real property interests. The rights to deposits of minerals lying within the boundaries of the unpatented state claims are subject to Alaska Statues 38.05.185 – 38.05.280, and are governed by Alaska Administrative Code 11 AAC 86.100 – 86.600. The validity of all State of Alaska unpatented mining claims is dependent upon inherent uncertainties and conditions. These uncertainties relate to matters such as:

 

   

The existence and sufficiency of a discovery of valuable minerals;

 

   

Proper posting and marking of boundaries in accordance with state statutes;

 

   

Making timely payments of annual rentals for the right to continue to hold the mining claims in accordance with state statutes;

 

   

Whether sufficient annual assessment work has been timely and properly performed; and

 

   

Possible conflicts with other claims not determinable from descriptions of records.

The validity of an unpatented mining claim also depends on (1) the claim having been located on Alaska state land open to appropriation by mineral location, which is the act of physically going on the land and making a claim by putting stakes in the ground, (2) compliance with all applicable state statutes in terms of the contents of claim location notices or certificates and the timely filing and recording of the same, (3) timely payment of annual claim rental fees, and (4) the timely filing and recording of proof of annual assessment work. In the absence of a discovery of valuable minerals, the ground covered by an unpatented mining claim is open to location by others unless the

 

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owner is in actual possession of and diligently working the claim. The unpatented state mining claims we own or control may be invalid, or the title to those claims may not be free from defects. In addition, the validity of our claims may be contested by the Alaska state government or challenged by third parties.

With respect to our Tetlin Properties, we retained title lawyers to conduct a general examination of title to the mineral interest prior to executing the lease. Prior to conducting any mining activity, however, we will obtain a full title review of the applicable lease to identify more fully any deficiencies in title to the lease and, if there are deficiencies, to identify measures necessary to cure those defects to the extent reasonably possible. However, such deficiencies may not be cured by us. It does happen, from time to time, that the examination made by title lawyers reveals that the title to the Properties are defective, having been obtained in error from a person who is not the rightful owner of the mineral interest desired. In these circumstances, we may not be able to proceed with our exploration and development of the lease site or may incur costs to remedy a defect. It may also happen, from time to time, that we may elect to proceed with drilling despite defects to the title identified in a title opinion.

We have entered into the Tetlin Lease with a Native American tribe for the exploration of gold and associated minerals. The enforcement of contractual rights against Native American tribes with sovereign powers may be difficult.

Federally recognized Native American tribes are independent governments with sovereign powers, except as those powers may have been limited by treaty or the United States Congress. Such tribes maintain their own governmental systems and often their own judicial systems and have the right to tax, and to require licenses and to impose other forms of regulation and regulatory fees, on persons and businesses operating on their lands. As sovereign nations, federally recognized Native American tribes are generally subject only to federal regulation. States do not have the authority to regulate them, unless such authority has been specifically granted by Congress, and state laws generally do not directly apply to them and to activities taking place on their lands, unless they have a specific agreement or compact with the state or Federal government allowing for the application of state law. Our Tetlin Lease provides that it will be governed by applicable federal law and the law of the State of Alaska. We cannot assure you, however, that this choice of law clause would be enforceable, leading to uncertain interpretation of our rights and remedies under the Tetlin Lease.

Federally recognized Native American tribes also generally enjoy sovereign immunity from lawsuit similar to that of the states and the United States federal government. In order to sue a Native American tribe (or an agency or instrumentality of a Native American tribe), the Native American tribe must have effectively waived its sovereign immunity with respect to the matter in dispute. Moreover, even if a Native American tribe effectively waives its sovereign immunity, there exists an issue as to the forum in which a lawsuit can be brought against the tribe. Federal courts are courts of limited jurisdiction and generally do not have jurisdiction to hear civil cases relating to matters concerning Native American lands or the internal affairs of Native American governments. Federal courts may have jurisdiction if a federal question is raised by the lawsuit, which is unlikely in a typical contract dispute. Diversity of citizenship, another common basis for federal court jurisdiction, is not generally present in a suit against a tribe because a Native American tribe is not considered a citizen of any state. Accordingly, in most commercial disputes with tribes, the jurisdiction of the federal courts, may be difficult or impossible to obtain. Our Tetlin Lease contains a provision in which the Tetlin Village Council expressly waives its sovereign immunity to the limited extent necessary to permit judicial review in the courts in Alaska of certain issues affecting the Tetlin Lease.

Competition in the mineral exploration industry is intense, and the Company is smaller and has a much more limited operating history than most of its competitors.

We will compete with a broad range of mining companies with far greater resources in our exploration activities. Several mining companies concentrate drilling efforts on one type of mineral and thus may enjoy economies of scale and other efficiencies. However, our drilling strategies include both mining of gold ore and rare earth elements. As a result, we may not be able to compete with such companies. We will also compete for

 

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the equipment and labor required to operate and to develop our Properties if our exploration activities are successful. Most of our competitors have substantially greater financial resources than we do. These competitors may be able to evaluate, bid for and purchase a greater number of properties and prospects than we can. In addition, most of our competitors have been operating for a much longer time than we have and have substantially larger staffs. Gold and rare earth minerals processing requires complex and sophisticated processing technologies. We have no experience in the minerals processing industry.

We have only owned mining properties since the acquisition by our predecessors of the Properties in 2009 and 2010. Furthermore, no member of our management has any technical training or experience in minerals exploration or mining. Because of our limited operating history, we have limited insight into trends that may emerge and affect our business. We may make errors in predicting and reacting to relevant business trends and will be subject to the risks, uncertainties and difficulties frequently encountered by early-stage companies in evolving markets such as ours. We may not be able to compete effectively with more experienced companies or in such a highly competitive environment.

With respect to our rare earth mining activities, the Chinese have been exploring for, mining and producing rare earth minerals long before our entry into the industry, and therefore have far greater financial capabilities, as well as other processing technologies and resources to improve and expand their facilities. Additionally, the Chinese have enjoyed economies of scale and favorable domestic policies. We may not be able to overcome any strategic advantages our Chinese competitors may have over us.

The mining industry is historically a cyclical industry and market fluctuations in the prices of minerals could adversely affect our business.

Prices for minerals tend to fluctuate significantly in response to factors beyond our control. These factors include:

 

   

global economic conditions;

 

   

domestic and foreign tax policy;

 

   

the price of foreign imports of gold and rare earth elements, and products derived from the foregoing;

 

   

the cost of exploring for, producing and processing mineral ore;

 

   

available transportation capacity; and

 

   

the overall supply and demand for minerals.

Changes in commodity prices would directly affect revenues and may reduce the amount of funds available to reinvest in exploration and development activities. Reductions in mineral prices not only reduce revenues and profits, but could also reduce the quantities of reserves that are commercially recoverable. Declining metal prices may also impact our operations by requiring a reassessment of the commercial feasibility of any of our drilling programs.

Because our sole source of revenue will be the sale of gold and rare earth minerals if our exploration efforts are successful, changes in demand for, and the market price of, gold and rare earth minerals could significantly affect our profitability. The value and price of our common stock may be significantly affected by declines in the prices of gold and rare earth minerals and products.

Gold prices fluctuate widely and are affected by numerous factors beyond our control such as interest rates, exchange rates, inflation or deflation, fluctuation in the relative value of the United States dollar against foreign currencies on the world market, global and regional supply and demand for gold, and the political and economic conditions of gold producing countries throughout the world.

 

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Demand for rare earth minerals may also be impacted by fluctuations in demand for downstream products incorporating rare earth minerals, including wind power technology and hybrid and electric vehicles. Lack of growth in the clean technology or automotive industries may adversely affect the demand for rare earth minerals. The success of our business also depends on the creation of new products that may incorporate rare earth minerals. A prolonged or significant economic contraction in the United States or worldwide could also put downward pressure on market prices of rare earth minerals and products.

An increase in the global supply of minerals may adversely affect our business.

The pricing and demand for gold and rare earth minerals is affected by a number of factors beyond our control, including global economic conditions and the global supply and demand for gold and rare earth minerals and products. Increases in the amount of gold and rare earth minerals sold by our competitors may result in price reductions, reduced margins and we may not be able to compete effectively against current and future competitors.

We depend upon our management team and our consultant, Avalon.

The successful implementation of our business strategy and handling of other issues integral to the fulfillment of our business strategy depends, in part, on our management team, as well as our consultant, Avalon, and its geoscientists, geologists, engineers and other professionals engaged by Avalon. The loss of key members of our management team or the professional staff at Avalon could have a material adverse effect on our business, financial condition and operating results.

We do not have a loan facility with any financial institutions and as a result may not have sufficient capital to operate our business.

We currently do not have a loan facility with any financial institutions. The Company will have a limited amount of cash to fund its operations. Without additional funds to support the Company’s exploratory drilling activities, we may deplete our cash resources and cease operations.

Risks Related to Environmental Regulation

We are subject to complex laws and regulations, including environmental regulations that can adversely affect the cost, manner or feasibility of doing business.

Our exploratory mining operations are subject to numerous laws and regulations governing our operations and the discharge of materials into the environment, including the Federal Clean Water Act, Clean Air Act, Endangered Species Act, and the Comprehensive Environmental Response, Compensation, and Liability Act. Federal initiatives are often also administered and enforced through state agencies operating under parallel state statutes and regulations. Failure to comply with such rules and regulations could result in substantial penalties and have an adverse effect on us. These laws and regulations may:

 

   

Require that we obtain permits before commencing drilling;

 

   

Restrict the substances that can be released into the environment in connection with drilling activities; and

 

   

Limit or prohibit drilling activities on protected areas.

Under these laws and regulations, we could be liable for personal injury and clean-up costs and other environmental and property damages, as well as administrative, civil and criminal penalties. We maintain only limited insurance coverage for sudden and accidental environmental damages. Accordingly, we may be subject to liability, or we may be required to cease production from properties in the event of environmental damages. These laws and regulations have been changed frequently in the past. In general, these changes have imposed

 

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more stringent requirements that increase operating costs or require capital expenditures in order to remain in compliance. Any such changes could have an adverse effect on our business, financial condition and results of operations.

We are subject to the Federal Mine Safety and Health Act of 1977 and regulations promulgated thereto, which impose stringent health and safety standards on numerous aspects of our operations.

Our mining operations in Alaska are subject to the Federal Mine Safety and Health Act of 1977, which impose stringent health and safety standards on numerous aspects of mineral extraction and processing operations, including the training of personnel, operating procedures, operating equipment and other matters. Our failure to comply with these standards could have a material adverse effect on our business, financial condition or otherwise impose significant restrictions on our ability to conduct mining operations.

We may be unable to obtain, maintain or renew permits necessary for the development or operation of any mining activities, which could have a material adverse effect on our business, financial condition or results of operation.

We must obtain a number of permits that impose strict conditions, requirements and obligations relating to various environmental and health and safety matters in connection with our current and future operations. To obtain certain permits, we may be required to conduct environmental studies, collect and present data to governmental authorities and the general public pertaining to the potential impact of our current and future operations upon the environment and take steps to avoid or mitigate the impact. The permitting rules are complex and have tended to become more stringent over time. Accordingly, permits required for our operations may not be issued, maintained or renewed in a timely fashion or at all, or may be conditioned upon restrictions which may impede our ability to operate efficiently. The failure to obtain certain permits or the adoption of more stringent permitting requirements could have a material adverse effect on our business, our plans of operation, and properties in that we may not be able to proceed with our exploration, development or mining programs.

Risks Related to This Offering and Ownership of Our Common Stock

Anti-takeover provisions of our certificate of incorporation, bylaws and Delaware law could adversely affect potential acquisition by third parties.

Our certificate of incorporation, bylaws and the Delaware General Corporation Law contain provisions that may discourage unsolicited takeover proposals. These provisions could have the effect of inhibiting fluctuations in the market price of our common stock that could result from actual or rumored takeover attempts, preventing changes in our management or limiting the price that investors may be willing to pay for shares of common stock. Among other things, these provisions:

 

   

Limit the personal liability of directors;

 

   

Limit the persons who may call special meetings of stockholders;

 

   

Prohibit stockholder action by written consent;

 

   

Establish advance notice requirements for nominations for election of the board of directors and for proposing matters to be acted on by stockholders at stockholder meetings;

 

   

Require us to indemnify directors and officers to the fullest extent permitted by applicable law; and

 

   

Impose restrictions on business combinations with some interested parties.

The market for our common stock is limited.

There is currently no public market for our common stock. We anticipate the trading market for our common stock will be limited. Our common stock is or will be eligible for trading on the OTC Bulletin Board

 

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exchange, but is not eligible for trading on any regional securities exchange or the Nasdaq National Market. A more active trading market for our common stock may never develop, or if such a market develops, it may not be sustained.

We anticipate our common stock will be thinly traded following the Distribution.

Following the Distribution, we anticipate that approximately 1.6 million shares of our common stock will be outstanding and held by approximately 5,000 shareholders, with directors and officers owning or have voting control over approximately 22% of our common stock. Since we anticipate our common stock will be thinly traded after the Distribution, the purchase or sale of relatively small common stock positions may result in disproportionately large increases or decreases in the price of our common stock.

We do not intend to pay dividends in the foreseeable future.

For the foreseeable future, we intend to retain any earnings to finance the development of our business, and we do not anticipate paying any cash dividends on our common stock. Any future determination to pay dividends will be at the discretion of our Board of Directors and will be dependent upon then-existing conditions, including our operating results and financial condition, capital requirements, contractual restrictions, business prospects and other factors that our Board of Directors considers relevant. Accordingly, investors must rely on sales of their common stock after any price appreciation, which may never occur, as the only way to realize a return on their investment.

 

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Item 2. FINANCIAL INFORMATION.

This “Financial Information” section should be read in conjunction with Item 13—“Financial Statements and Supplementary Data.”

Selected Historical Financial Data

The Company is a new company that, after the Distribution, expects to hold leases and mining claims for the exploration of gold deposits and associated minerals and rare earth elements. Because we have only recently begun operations, our historical financial information and operating data may not provide an accurate indication of our present financial condition or what the future results of operations are likely to be. The data should be read in conjunction with the financial statements and related notes and other financial information appearing elsewhere in this Registration Statement.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and the related notes and other information included elsewhere in this Registration Statement.

Overview

The Company is a Houston-based, independent company which upon completion of the Distribution, expects to hold certain mineral property interests for the conduct of exploratory drilling activities in the State of Alaska. The Company has no operating history and its prospects are subject to the risk and uncertainties frequently encountered by companies in the early stages of development.

The financial data and discussion of our financial condition and results of operations provided herein assume that the Distribution has occurred and the Company holds 100% of the Properties.

Liquidity and Capital Resources

The Company acquired certain interests in prospective gold and rare earth mineral properties located in the State of Alaska from Contango. The Company is in the initial stage of conducting exploration activities on its Properties, and our longer term liquidity could be impaired to the extent our exploration efforts are not successful in generating commercially viable mineral deposits on the Properties.

Liquidity. We expect our initial source of funding to be cash contributed by Contango. Pursuant to the Contribution Agreement, Contango is required to make a capital contribution in the amount of $3.5 million to fund costs and expenses of the Company. In the future, the Company may require additional funding from other funding sources, including possible equity offerings which could cause substantial dilution of our common stock, possible borrowings from financial institutions and possible offerings of debt securities. Any such debt financing would, however, increase our leverage and add to our need for cash to service such debt. Our ability to raise additional capital will depend on the results of our exploration program and the status of various capital and industry markets at the time such additional capital is sought. Accordingly, there can be no assurances that capital will be available to us from any source or that, if available, it will be on terms acceptable to us.

Capital Budget. For the next twelve months, our capital expenditure budget calls for us to invest approximately $2 million for exploratory drilling and other exploration activities on our Gold Properties and on our REE Properties. Our 2011 exploration program will be conducted in three phases as follows:

 

   

Tetlin—Airborne Geophysics: Based on the results of geologic mapping, geochemical sampling and ground-based induced polarization studies completed on the Tetlin Properties in 2009 and 2010, a

 

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helicopter-supported airborne geophysical survey is planned for the Tetlin Properties in the spring of 2011. This program will include helicopter-supported airborne magnetics and multi-frequency electromagnetics over portions of the Tetlin Properties where previous exploratory activities have encountered gold and/or copper mineralization. The processed data will be evaluated by one or more geophysical contractors and mineral target prioritization will be completed. These data, in conjunction with previously gathered data, will serve as a basis to define and prioritize exploration drilling targets for follow-up in the summer and fall of 2011. Total estimated all-in cost of the program is budgeted at $500,000, including airborne data collection and reduction, data interpretation, logistical support and final prospect targeting.

 

   

Tetlin—Diamond Drilling: Previous work at Tetlin has defined several drilling targets. Airborne geophysical data will be used to expand the information on these high priority areas and prioritize the targets for exploration drilling. The exploration drilling program, to commence during the summer of 2011, will entail diamond core drilling to determine the depth extent and nature of gold and copper mineralization encountered by surface sampling. All cores will be logged, digitally photographed, split with a Haley core saw and one-half of each interval will be submitted for geochemical analysis. The remaining half core will be retained for future use. All cores will be assayed for gold by fire assay techniques with each sample also analyzed for a multi-element suite by inductively coupled plasma (“ICP”) methods using 4-acid digestion procedures. The estimated cost of this drilling program, including labor, assays, accommodations, heavy equipment rental, drilling, fuel and all consumables is $1 million.

 

   

Rare Earth Elements—Reconnaissance: A team of Avalon geologists and technicians will conduct first-pass reconnaissance exploration of the REE Properties. As of the date of the Distribution, no field work has been conducted on the Company’s REE Properties. The team will conduct geologic mapping, geochemical sampling and other tasks designed to determine the presence and magnitude of rare earth element mineralization on the REE Properties. All geochemical samples will be assayed for gold by fire assay techniques with each sample also analyzed for a multi-element suite, including the rare earth elements, by inductively coupled plasma-mass spectronomy or equivalent methods using 4-acid digestion procedures. The estimated cost of this program, including labor, assays, accommodations, claim maintenance fees, helicopter and fixed-wing support, fuel and all consumables is $500,000.

We will plan our 2012 and 2013 exploration programs based upon the results of our 2011 exploration program. As of the date of the Distribution, Contango has contributed $3,500,000 to the Company in order to fund our 2011 planned explorations, but the Company may need to raise additional debt and/or equity to fund future minerals exploration programs. There can be no assurance the Company will be able to raise such additional capital.

We will also incur general and administrative expenses, which may include legal fees, audit fees, consultant fees, insurance, and other operating expenses.

Results of Operations

The Company is a newly-formed company that has not commenced mining or producing commercially marketable minerals. To date, we have not generated any revenue from mineral sales or operations. We have no recurring source of revenue and our ability to continue as a going concern is dependent on our ability to raise capital to fund our future exploration and working capital requirements.

In the future, we may generate revenue from a combination of mineral sales and other payments resulting from any commercially recoverable minerals from our properties. We do not expect to generate revenue from mineral sales in the foreseeable future. If our Properties fail to contain any proven reserves, our ability to generate future revenue, and our results of operations and financial position, would be materially adversely affected. Other potential sources of cash, or relief of demand for cash, include external debt, the sale of shares of

 

19


Table of Contents
Index to Financial Statements

our stock, joint ventures, or alternative methods such as mergers or sale of our assets. No assurances can be given, however, that we will be able to obtain any of these potential sources of cash. We will need to generate significant revenues to achieve profitability and we may never do so.

Off-Balance Sheet Arrangements

Contractual Obligations

The Tetlin Lease provides for an initial term of ten (10) years, and so long after such initial term as we continue conducting exploration or mining operations on the Tetlin Properties. While the Company is required to spend $350,000 per year annually for ten years in exploration costs pursuant to the Tetlin Lease, the Company anticipates that exploration expenditures through the 2010 exploration program will satisfy this requirement because exploration funds spent in any year in excess of $350,000 are credited toward future years’ exploration cost requirements. The Tetlin Lease also provides that we will pay the Tetlin Village Council a production royalty of from 3% to 5% should we deliver to a purchaser on a commercial basis precious metals, non-precious metals or hydrocarbons derived from the Tetlin Properties.

Critical Accounting Policies

The discussion and analysis of the Company’s financial condition and results of operations is based upon the financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We have identified below the policies that are of particular importance to the portrayal of our financial position and results of operations and which require the application of significant judgment by management. The Company analyzes its estimates, including those related to its mineral reserve estimates, on a periodic basis and bases its estimates on historical experience, independent third party engineers and various other assumptions that management believes to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The Company believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of the Company’s financial statements:

Mineral Property Interests, Exploration and Development Costs: Mineral property interests include interests in the exploration stage mineral properties acquired. The amount capitalized includes costs paid to acquire mineral property interest as well as the costs paid to the State of Alaska to obtain the lease rights. Exploration costs are expensed as incurred. Development costs are expensed as incurred until the Company obtains proven and probable reserves within its commercially minable properties. Costs of abandoned projects are charged to earnings upon abandonment. Properties determined to be impaired are written-down to the estimated fair value. The Company periodically evaluates whether events or changes in circumstances indicate that the carrying value of mineral property interests and related property, plant and equipment may not be recoverable.

Stock-Based Compensation. The Company applies the fair value based method to account for stock-based compensation. Under this method, we will measure and recognize compensation expense for all stock-based payments at fair value. Management is required to make assumptions including stock price volatility and employee turnover that are utilized to measure compensation expense. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model.

 

Item 3. PROPERTIES.

Upon completion of the Distribution, our Properties will be located in the State of Alaska. Our principal properties will consist of mineral leases and unpatented mining claims.

We believe that we hold good title to our Properties in accordance with standards generally accepted in the minerals industry. As is customary in both the gold and rare earths industry, we conduct only a perfunctory title

 

20


Table of Contents
Index to Financial Statements

examination at the time we acquire a property. Before we begin any mining activities, however, we will conduct a full title examination and perform curative work on any defects that we deem significant.

Lease with Tetlin Village Council

JEX entered into the Tetlin Lease with the Tetlin Village Council, effective as of June 15, 2008. An undivided 50% leasehold interest was sold to Contango Mining pursuant to the Joint Exploration Agreement dated as of September 29, 2009 in exchange for $1 million and a 1% overriding royalty interest. JEX transferred its remaining 50% leasehold interest to Contango Mining as of September 15, 2010 in exchange for an increased overriding royalty aggregating 3%. The Tetlin Lease covers approximately 647,000 acres of land, provides for an initial term of ten (10) years, and so long after such initial term as we continue conducting exploration or mining operations on the Tetlin Properties. While the Company is required to spend $350,000 per year annually for ten years in exploration costs pursuant to the Tetlin Lease, the Company anticipates that exploration expenditures through the 2010 exploration program will satisfy this requirement because exploration funds spent in any year in excess of $350,000 are credited toward future years’ exploration cost requirements. The Tetlin Lease also provides that we will pay the Tetlin Village Council a production royalty should we deliver to a purchaser on a commercial basis precious metals, non-precious metals or hydrocarbons derived from the Tetlin Properties.

Gold Mining Claims

Our State of Alaska unpatented mining claims for gold and associated minerals are set forth in the tables below.

LAD CLAIMS

TRIPLE Z PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

1

   Lad 1    160    18N    15E    3    Copper River    666952

2

   Lad 2    160    18N    15E    2    Copper River    666953

3

   Lad 3    160    18N    15E    10    Copper River    666954

4

   Lad 4    160    18N    15E    11    Copper River    666955

TOK CLAIMS

TETLIN PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   TOK 1    40    16N    13E    9    Copper River    614253

2

   TOK 2    40    16N    13E    9    Copper River    614254

3

   TOK 3    40    16N    13E    9    Copper River    614255

4

   TOK 4    40    16N    13E    9    Copper River    614256

5

   TOK 5    160    16N    13E    8    Copper River    614257

6

   TOK 6    160    16N    13E    9    Copper River    614258

7

   TOK 7    40    16N    13E    9    Copper River    614259

8

   TOK 8    40    16N    13E    9    Copper River    614260

9

   TOK 9    40    16N    13E    9    Copper River    614261

10

   TOK 10    40    16N    13E    9    Copper River    614262

11

   TOK 11    40    16N    13E    10    Copper River    614263

12

   TOK 12    40    16N    13E    10    Copper River    614264

13

   TOK 13    160    16N    12E    13    Copper River    614265

 

21


Table of Contents
Index to Financial Statements

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

14

   TOK 14    160    16N    13E    18    Copper River    614266

15

   TOK 15    160    16N    13E    18    Copper River    614267

16

   TOK 16    160    16N    13E    17    Copper River    614268

17

   TOK 17    160    16N    13E    17    Copper River    614269

18

   TOK 18    160    16N    13E    16    Copper River    614270

19

   TOK 19    40    16N    13E    16    Copper River    614271

20

   TOK 20    40    16N    13E    16    Copper River    614272

21

   TOK 21    40    16N    13E    15    Copper River    614273

22

   TOK 22    40    16N    13E    16    Copper River    614274

23

   TOK 23    40    16N    13E    16    Copper River    614275

24

   TOK 24    40    16N    13E    15    Copper River    614276

25

   TOK 25    160    16N    12E    14    Copper River    614277

26

   TOK 26    160    16N    12E    13    Copper River    614278

27

   TOK 27    160    16N    12E    13    Copper River    614279

28

   TOK 28    160    16N    13E    18    Copper River    614280

29

   TOK 29    160    16N    13E    18    Copper River    614281

30

   TOK 30    160    16N    13E    17    Copper River    614282

31

   TOK 31    160    16N    13E    17    Copper River    614283

32

   TOK 32    160    16N    13E    16    Copper River    614284

33

   TOK 33    40    16N    13E    16    Copper River    614285

34

   TOK 34    40    16N    13E    16    Copper River    614286

35

   TOK 35    160    16N    12E    23    Copper River    614287

36

   TOK 36    160    16N    12E    23    Copper River    614288

37

   TOK 37    160    16N    12E    24    Copper River    614289

38

   TOK 38    160    16N    12E    24    Copper River    614290

39

   TOK 39    160    16N    13E    19    Copper River    614291

40

   TOK 40    160    16N    13E    19    Copper River    614292

41

   TOK 41    160    16N    13E    20    Copper River    614293

42

   TOK 42    160    16N    13E    20    Copper River    614294

43

   TOK 43    40    16N    13E    21    Copper River    614295

44

   TOK 44    40    16N    13E    21    Copper River    614296

45

   TOK 45    40    16N    13E    21    Copper River    614297

46

   TOK 46    40    16N    13E    21    Copper River    614298

47

   TOK 47    160    16N    12E    22    Copper River    614299

48

   TOK 48    160    16N    12E    23    Copper River    614300

49

   TOK 49    160    16N    12E    23    Copper River    614301

50

   TOK 50    160    16N    12E    24    Copper River    614302

51

   TOK 51    160    16N    12E    24    Copper River    614303

52

   TOK 52    160    16N    13E    19    Copper River    614304

53

   TOK 53    160    16N    13E    19    Copper River    614305

54

   TOK 54    160    16N    13E    20    Copper River    614306

55

   TOK 55    160    16N    13E    20    Copper River    614307

56

   TOK 56    40    16N    13E    21    Copper River    614308

57

   TOK 57    40    16N    13E    21    Copper River    614309

58

   TOK 58    40    16N    13E    21    Copper River    614310

59

   TOK 59    40    16N    13E    21    Copper River    614311

60

   TOK 60    40    16N    13E    21    Copper River    614312

61

   TOK 61    160    16N    12E    27    Copper River    614313

62

   TOK 62    160    16N    12E    27    Copper River    614314

63

   TOK 63    160    16N    12E    26    Copper River    614315

64

   TOK 64    160    16N    12E    26    Copper River    614316

 

22


Table of Contents
Index to Financial Statements

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

65

   TOK 65    160    16N    12E    25    Copper River    614317

66

   TOK 66    40    16N    12E    25    Copper River    614318

67

   TOK 67    40    16N    12E    25    Copper River    614319

68

   TOK 68    40    16N    12E    25    Copper River    614320

69

   TOK 69    40    16N    12E    25    Copper River    614321

70

   TOK 70    40    16N    13E    30    Copper River    614322

71

   TOK 71    40    16N    13E    30    Copper River    614323

72

   TOK 72    40    16N    13E    30    Copper River    614324

73

   TOK 73    40    16N    13E    30    Copper River    614325

74

   TOK 74    160    16N    13E    30    Copper River    614326

75

   TOK 75    160    16N    13E    29    Copper River    614327

76

   TOK 76    160    16N    13E    29    Copper River    614328

77

   TOK 77    40    16N    13E    28    Copper River    614329

78

   TOK 78    40    16N    13E    28    Copper River    614330

79

   TOK 79    40    16N    13E    28    Copper River    614331

80

   TOK 80    40    16N    13E    28    Copper River    614332

81

   TOK 81    40    16N    13E    28    Copper River    614333

82

   TOK 82    40    16N    13E    28    Copper River    614334

83

   TOK 83    160    16N    12E    28    Copper River    614335

84

   TOK 84    160    16N    12E    27    Copper River    614336

85

   TOK 85    160    16N    12E    27    Copper River    614337

86

   TOK 86    160    16N    12E    26    Copper River    614338

87

   TOK 87    160    16N    12E    26    Copper River    614339

88

   TOK 88    160    16N    12E    25    Copper River    614340

89

   TOK 89    40    16N    12E    25    Copper River    614341

90

   TOK 90    40    16N    12E    25    Copper River    614342

91

   TOK 91    40    16N    13E    29    Copper River    614343

92

   TOK 92    40    16N    13E    29    Copper River    614344

93

   TOK 93    40    16N    13E    29    Copper River    614345

94

   TOK 94    40    16N    13E    29    Copper River    614346

95

   TOK 95    40    16N    13E    28    Copper River    614347

96

   TOK 96    160    16N    12E    33    Copper River    614348

97

   TOK 97    160    16N    12E    33    Copper River    614349

98

   TOK 98    160    16N    12E    34    Copper River    614350

99

   TOK 99    40    16N    12E    34    Copper River    614351

100

   TOK 100    40    16N    12E    34    Copper River    614352

101

   TOK 101    40    16N    12E    34    Copper River    614353

102

   TOK 102    40    16N    12E    34    Copper River    614354

103

   TOK 103    40    16N    12E    35    Copper River    614355

104

   TOK 104    40    16N    12E    35    Copper River    614356

105

   TOK 105    40    16N    12E    35    Copper River    614357

106

   TOK 106    40    16N    12E    35    Copper River    614358

107

   TOK 107    40    16N    12E    35    Copper River    614359

108

   TOK 108    40    16N    12E    35    Copper River    614360

109

   TOK 109    40    16N    12E    35    Copper River    614361

110

   TOK 110    40    16N    12E    36    Copper River    614362

111

   TOK 111    40    16N    12E    36    Copper River    614363

112

   TOK 112    40    16N    12E    36    Copper River    614364

113

   TOK 113    40    16N    12E    36    Copper River    614365

114

   TOK 114    160    16N    12E    32    Copper River    614366

115

   TOK 115    160    16N    12E    32    Copper River    614367

 

23


Table of Contents
Index to Financial Statements

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

116

   TOK 116    160    16N    12E    33    Copper River    614368

117

   TOK 117    160    16N    12E    33    Copper River    614369

118

   TOK 118    40    16N    12E    34    Copper River    614370

119

   TOK 119    40    16N    12E    34    Copper River    614371

120

   TOK 120    40    16N    12E    34    Copper River    614372

121

   TOK 121    40    16N    12E    34    Copper River    614373

122

   TOK 122    40    16N    12E    34    Copper River    614374

REE Mining Claims

Our State of Alaska and Federal mining claims for rare earth elements are set forth in the tables below.

ALT CLAIMS

ALATNA PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Wiseman Quadrangle, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

1

   ALT 1    160    28N    23W    5    Fairbanks    701674

2

   ALT 2    160    28N    23W    5    Fairbanks    701675

3

   ALT 3    160    28N    23W    4    Fairbanks    701676

4

   ALT 4    160    28N    23W    4    Fairbanks    701677

5

   ALT 5    160    28N    23W    3    Fairbanks    701678

6

   ALT 6    160    28N    23W    3    Fairbanks    701679

7

   ALT 7    160    28N    23W    2    Fairbanks    701680

8

   ALT 8    160    28N    23W    8    Fairbanks    701681

9

   ALT 9    160    28N    23W    8    Fairbanks    701682

10

   ALT 10    160    28N    23W    9    Fairbanks    701683

11

   ALT 11    160    28N    23W    9    Fairbanks    701684

12

   ALT 12    160    28N    23W    10    Fairbanks    701685

13

   ALT 13    160    28N    23W    10    Fairbanks    701686

14

   ALT 14    160    28N    23W    11    Fairbanks    701687

15

   ALT 15    160    28N    23W    8    Fairbanks    701688

16

   ALT 16    160    28N    23W    8    Fairbanks    701689

17

   ALT 17    160    28N    23W    9    Fairbanks    701690

18

   ALT 18    160    28N    23W    9    Fairbanks    701691

19

   ALT 19    160    28N    23W    10    Fairbanks    701692

20

   ALT 20    160    28N    23W    10    Fairbanks    701693

21

   ALT 21    160    28N    23W    11    Fairbanks    701694

22

   ALT 22    160    28N    23W    17    Fairbanks    701695

23

   ALT 23    160    28N    23W    17    Fairbanks    701696

24

   ALT 24    160    28N    23W    16    Fairbanks    701697

25

   ALT 25    160    28N    23W    16    Fairbanks    701698

26

   ALT 26    160    28N    23W    15    Fairbanks    701699

27

   ALT 27    160    28N    23W    15    Fairbanks    701700

28

   ALT 28    160    28N    23W    14    Fairbanks    701701

29

   ALT 29    160    28N    23W    17    Fairbanks    701702

30

   ALT 30    160    28N    23W    17    Fairbanks    701703

31

   ALT 31    160    28N    23W    16    Fairbanks    701704

32

   ALT 32    160    28N    23W    16    Fairbanks    701705

33

   ALT 33    160    28N    23W    15    Fairbanks    701706

 

24


Table of Contents
Index to Financial Statements

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

34

   ALT 34    160    28N    23W    15    Fairbanks    701707

35

   ALT 35    160    28N    23W    14    Fairbanks    701708

36

   ALT 36    160    28N    23W    20    Fairbanks    701709

37

   ALT 37    160    28N    23W    20    Fairbanks    701710

38

   ALT 38    160    28N    23W    21    Fairbanks    701711

39

   ALT 39    160    28N    23W    21    Fairbanks    701712

40

   ALT 40    160    28N    23W    22    Fairbanks    701713

41

   ALT 41    160    28N    23W    22    Fairbanks    701714

42

   ALT 42    160    28N    23W    23    Fairbanks    701715

43

   ALT 43    160    28N    24W    33    Fairbanks    701716

44

   ALT 44    160    28N    24W    33    Fairbanks    701717

45

   ALT 45    160    28N    24W    34    Fairbanks    701718

46

   ALT 46    160    28N    24W    34    Fairbanks    701719

47

   ALT 47    160    28N    24W    35    Fairbanks    701720

48

   ALT 48    160    28N    24W    35    Fairbanks    701721

49

   ALT 49    160    28N    24W    36    Fairbanks    701722

50

   ALT 50    160    27N    25W    2    Fairbanks    701723

51

   ALT 51    160    27N    25W    2    Fairbanks    701724

52

   ALT 52    160    27N    25W    1    Fairbanks    701725

53

   ALT 53    160    27N    25W    1    Fairbanks    701726

54

   ALT 54    160    27N    24W    6    Fairbanks    701727

55

   ALT 55    160    27N    24W    6    Fairbanks    701728

56

   ALT 56    160    27N    24W    5    Fairbanks    701729

57

   ALT 57    160    27N    24W    5    Fairbanks    701730

58

   ALT 58    160    27N    24W    4    Fairbanks    701731

59

   ALT 59    160    27N    24W    4    Fairbanks    701732

60

   ALT 60    160    27N    24W    3    Fairbanks    701733

61

   ALT 61    160    27N    24W    3    Fairbanks    701734

62

   ALT 62    160    27N    24W    2    Fairbanks    701735

63

   ALT 63    160    27N    24W    2    Fairbanks    701736

64

   ALT 64    160    27N    24W    1    Fairbanks    701737

65

   ALT 65    160    27N    25W    2    Fairbanks    701738

66

   ALT 66    160    27N    25W    2    Fairbanks    701739

67

   ALT 67    160    27N    25W    1    Fairbanks    701740

68

   ALT 68    160    27N    24W    6    Fairbanks    701741

69

   ALT 69    160    27N    24W    5    Fairbanks    701742

70

   ALT 70    160    27N    24W    5    Fairbanks    701743

71

   ALT 71    160    27N    24W    4    Fairbanks    701744

72

   ALT 72    160    27N    24W    4    Fairbanks    701745

73

   ALT 73    160    27N    24W    3    Fairbanks    701746

74

   ALT 74    160    27N    24W    3    Fairbanks    701747

75

   ALT 75    160    27N    24W    2    Fairbanks    701748

76

   ALT 76    160    27N    24W    2    Fairbanks    701749

77

   ALT 77    160    27N    24W    1    Fairbanks    701750

78

   ALT 78    160    27N    25W    11    Fairbanks    701751

79

   ALT 79    160    27N    25W    11    Fairbanks    701752

80

   ALT 80    160    27N    25W    12    Fairbanks    701753

81

   ALT 81    160    27N    24W    9    Fairbanks    701754

82

   ALT 82    160    27N    24W    10    Fairbanks    701755

83

   ALT 83    160    27N    24W    10    Fairbanks    701756

84

   ALT 84    160    27N    24W    11    Fairbanks    701757

 

25


Table of Contents
Index to Financial Statements

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

85

   ALT 85    160    27N    24W    11    Fairbanks    701758

86

   ALT 86    160    27N    24W    12    Fairbanks    701759

87

   ALT 87    160    27N    24W    10    Fairbanks    701760

88

   ALT 88    160    27N    24W    10    Fairbanks    701761

89

   ALT 89    160    27N    24W    11    Fairbanks    701762

90

   ALT 90    160    27N    24W    11    Fairbanks    701763

91

   ALT 91    160    27N    24W    12    Fairbanks    701764

92

   ALT 92    160    21N    26E    16    Kateel River    701765

93

   ALT 93    160    21N    26E    16    Kateel River    701766

94

   ALT 94    160    21N    26E    15    Kateel River    701767

95

   ALT 95    160    21N    26E    15    Kateel River    701768

96

   ALT 96    160    21N    26E    14    Kateel River    701769

97

   ALT 97    160    21N    26E    14    Kateel River    701770

98

   ALT 98    160    21N    26E    21    Kateel River    701771

99

   ALT 99    160    21N    26E    21    Kateel River    701772

100

   ALT 100    160    21N    26E    22    Kateel River    701773

101

   ALT 101    160    21N    26E    22    Kateel River    701774

102

   ALT 102    160    21N    26E    23    Kateel River    701775

103

   ALT 103    160    21N    26E    23    Kateel River    701776

104

   ALT 104    160    21N    26E    21    Kateel River    701777

105

   ALT 105    160    21N    26E    21    Kateel River    701778

106

   ALT 106    160    21N    26E    22    Kateel River    701779

107

   ALT 107    160    21N    26E    22    Kateel River    701780

108

   ALT 108    160    21N    26E    23    Kateel River    701781

109

   ALT 109    160    21N    26E    23    Kateel River    701782

110

   ALT 110    160    21N    26E    28    Kateel River    701783

111

   ALT 111    160    21N    26E    28    Kateel River    701784

112

   ALT 112    160    21N    26E    27    Kateel River    701785

113

   ALT 113    160    21N    26E    27    Kateel River    701786

114

   ALT 114    160    21N    26E    26    Kateel River    701787

115

   ALT 115    160    21N    26E    26    Kateel River    701788

116

   ALT 116    160    21N    26E    28    Kateel River    701789

117

   ALT 117    160    21N    26E    28    Kateel River    701790

118

   ALT 118    160    21N    26E    27    Kateel River    701791

119

   ALT 119    160    21N    26E    27    Kateel River    701792

120

   ALT 120    160    21N    26E    26    Kateel River    701793

121

   ALT 121    160    21N    26E    26    Kateel River    701794

122

   ALT 122    160    21N    26E    33    Kateel River    701795

123

   ALT 123    160    21N    26E    33    Kateel River    701796

124

   ALT 124    160    21N    26E    34    Kateel River    701797

125

   ALT 125    160    21N    26E    34    Kateel River    701798

126

   ALT 126    160    21N    26E    35    Kateel River    701799

127

   ALT 127    160    21N    26E    35    Kateel River    701800

 

26


Table of Contents
Index to Financial Statements

SPK CLAIMS

SPOOKY PROJECT, ALASKA

All State of Alaska claims located in the Fort Gibbon and Rampart Recording Districts,

Tanana Quadrangle, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   SPK 1    160    11N    18W    27    Fairbanks    615106

2

   SPK 2    160    11N    18W    27    Fairbanks    615107

3

   SPK 3    160    11N    18W    26    Fairbanks    615108

4

   SPK 4    160    11N    18W    26    Fairbanks    615109

5

   SPK 5    160    11N    18W    25    Fairbanks    615110

6

   SPK 6    160    11N    18W    25    Fairbanks    615111

7

   SPK 7    160    11N    17W    30    Fairbanks    615112

8

   SPK 8    160    11N    17W    30    Fairbanks    615113

9

   SPK 9    160    11N    17W    29    Fairbanks    615114

10

   SPK 10    160    11N    17W    29    Fairbanks    615115

11

   SPK 11    160    11N    17W    28    Fairbanks    615116

12

   SPK 12    160    11N    17W    28    Fairbanks    615117

13

   SPK 13    160    11N    18W    27    Fairbanks    615118

14

   SPK 14    160    11N    18W    27    Fairbanks    615119

15

   SPK 15    160    11N    18W    26    Fairbanks    615120

16

   SPK 16    160    11N    18W    26    Fairbanks    615121

17

   SPK 17    160    11N    18W    25    Fairbanks    615122

18

   SPK 18    160    11N    18W    25    Fairbanks    615123

19

   SPK 19    160    11N    17W    30    Fairbanks    615124

20

   SPK 20    160    11N    17W    30    Fairbanks    615125

21

   SPK 21    160    11N    17W    29    Fairbanks    615126

22

   SPK 22    160    11N    17W    29    Fairbanks    615127

23

   SPK 23    160    11N    17W    28    Fairbanks    615128

24

   SPK 24    160    11N    17W    28    Fairbanks    615129

25

   SPK 25    160    11N    18W    32    Fairbanks    615130

26

   SPK 26    160    11N    18W    32    Fairbanks    615131

27

   SPK 27    160    11N    18W    33    Fairbanks    615132

28

   SPK 28    160    11N    18W    33    Fairbanks    615133

29

   SPK 29    160    11N    18W    34    Fairbanks    615134

30

   SPK 30    160    11N    18W    34    Fairbanks    615135

31

   SPK 31    160    11N    18W    35    Fairbanks    615136

32

   SPK 32    160    11N    18W    35    Fairbanks    615137

33

   SPK 33    160    11N    18W    36    Fairbanks    615138

34

   SPK 34    160    11N    18W    36    Fairbanks    615139

35

   SPK 35    160    11N    17W    31    Fairbanks    615140

36

   SPK 36    160    11N    17W    31    Fairbanks    615141

37

   SPK 37    160    11N    17W    32    Fairbanks    615142

38

   SPK 38    160    11N    17W    32    Fairbanks    615143

39

   SPK 39    160    11N    17W    33    Fairbanks    615144

40

   SPK 40    160    11N    17W    33    Fairbanks    615145

41

   SPK 41    160    11N    17W    34    Fairbanks    615146

42

   SPK 42    160    11N    18W    32    Fairbanks    615147

43

   SPK 43    160    11N    18W    32    Fairbanks    615148

44

   SPK 44    160    11N    18W    33    Fairbanks    615149

45

   SPK 45    160    11N    18W    33    Fairbanks    615150

46

   SPK 46    160    11N    18W    34    Fairbanks    615151

 

27


Table of Contents
Index to Financial Statements

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

47

   SPK 47    160    11N    18W    34    Fairbanks    615152

48

   SPK 48    160    11N    18W    35    Fairbanks    615153

49

   SPK 49    160    11N    18W    35    Fairbanks    615154

50

   SPK 50    160    11N    18W    36    Fairbanks    615155

51

   SPK 51    160    11N    18W    36    Fairbanks    615156

52

   SPK 52    160    11N    17W    31    Fairbanks    615157

53

   SPK 53    160    11N    17W    31    Fairbanks    615158

54

   SPK 54    160    11N    17W    32    Fairbanks    615159

55

   SPK 55    160    11N    17W    32    Fairbanks    615160

56

   SPK 56    160    11N    17W    33    Fairbanks    615161

57

   SPK 57    160    11N    17W    33    Fairbanks    615162

58

   SPK 58    160    11N    17W    34    Fairbanks    615163

59

   SPK 59    160    10N    18W    5    Fairbanks    615164

60

   SPK 60    160    10N    18W    5    Fairbanks    615165

61

   SPK 61    160    10N    18W    4    Fairbanks    615166

62

   SPK 62    160    10N    18W    4    Fairbanks    615167

63

   SPK 63    160    10N    18W    3    Fairbanks    615168

64

   SPK 64    160    10N    18W    3    Fairbanks    615169

65

   SPK 65    160    10N    18W    2    Fairbanks    615170

66

   SPK 66    160    10N    18W    2    Fairbanks    615171

67

   SPK 67    160    10N    18W    1    Fairbanks    615172

68

   SPK 68    160    10N    18W    1    Fairbanks    615173

69

   SPK 69    160    10N    17W    6    Fairbanks    615174

70

   SPK 70    160    10N    17W    6    Fairbanks    615175

71

   SPK 71    160    10N    17W    5    Fairbanks    615176

72

   SPK 72    160    10N    17W    5    Fairbanks    615177

73

   SPK 73    160    10N    17W    4    Fairbanks    615178

74

   SPK 74    160    10N    17W    4    Fairbanks    615179

75

   SPK 75    160    10N    17W    3    Fairbanks    615180

76

   SPK 76    160    10N    17W    3    Fairbanks    615181

77

   SPK 77    160    10N    18W    5    Fairbanks    615182

78

   SPK 78    160    10N    18W    5    Fairbanks    615183

79

   SPK 79    160    10N    18W    4    Fairbanks    615184

80

   SPK 80    160    10N    18W    4    Fairbanks    615185

81

   SPK 81    160    10N    18W    3    Fairbanks    615186

82

   SPK 82    160    10N    18W    3    Fairbanks    615187

83

   SPK 83    160    10N    18W    2    Fairbanks    615188

84

   SPK 84    160    10N    18W    2    Fairbanks    615189

85

   SPK 85    160    10N    18W    1    Fairbanks    615190

86

   SPK 86    160    10N    18W    1    Fairbanks    615191

87

   SPK 87    160    10N    17W    6    Fairbanks    615192

88

   SPK 88    160    10N    17W    6    Fairbanks    615193

89

   SPK 89    160    10N    17W    5    Fairbanks    615194

90

   SPK 90    160    10N    17W    5    Fairbanks    615195

91

   SPK 91    160    10N    17W    4    Fairbanks    615196

92

   SPK 92    160    10N    17W    4    Fairbanks    615197

93

   SPK 93    160    10N    17W    3    Fairbanks    615198

94

   SPK 94    160    10N    17W    3    Fairbanks    615199

95

   SPK 95    160    10N    18W    8    Fairbanks    615200

96

   SPK 96    160    10N    18W    8    Fairbanks    615201

97

   SPK 97    160    10N    18W    9    Fairbanks    615202

 

28


Table of Contents
Index to Financial Statements

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

98

   SPK 98    160    10N    18W    9    Fairbanks    615203

99

   SPK 99    160    10N    18W    10    Fairbanks    615204

100

   SPK 100    160    10N    18W    10    Fairbanks    615205

101

   SPK 101    160    10N    18W    11    Fairbanks    615206

102

   SPK 102    160    10N    18W    11    Fairbanks    615207

103

   SPK 103    160    10N    18W    12    Fairbanks    615208

104

   SPK 104    160    10N    18W    12    Fairbanks    615209

105

   SPK 105    160    10N    17W    7    Fairbanks    615210

106

   SPK 106    160    10N    17W    7    Fairbanks    615211

107

   SPK 107    160    10N    17W    8    Fairbanks    615212

108

   SPK 108    160    10N    17W    8    Fairbanks    615213

109

   SPK 109    160    10N    17W    9    Fairbanks    615214

110

   SPK 110    160    10N    17W    9    Fairbanks    615215

111

   SPK 111    160    10N    17W    10    Fairbanks    615216

112

   SPK 112    160    10N    17W    10    Fairbanks    615217

113

   SPK 113    160    10N    18W    8    Fairbanks    615218

114

   SPK 114    160    10N    18W    8    Fairbanks    615219

115

   SPK 115    160    10N    18W    9    Fairbanks    615220

116

   SPK 116    160    10N    18W    9    Fairbanks    615221

117

   SPK 117    160    10N    18W    10    Fairbanks    615222

118

   SPK 118    160    10N    18W    10    Fairbanks    615223

119

   SPK 119    160    10N    18W    11    Fairbanks    615224

120

   SPK 120    160    10N    18W    11    Fairbanks    615225

121

   SPK 121    160    10N    18W    12    Fairbanks    615226

122

   SPK 122    160    10N    18W    12    Fairbanks    615227

123

   SPK 123    160    10N    17W    7    Fairbanks    615228

124

   SPK 124    160    10N    17W    7    Fairbanks    615229

125

   SPK 125    160    10N    17W    8    Fairbanks    615230

126

   SPK 126    160    10N    17W    8    Fairbanks    615231

127

   SPK 127    160    10N    17W    9    Fairbanks    615232

128

   SPK 128    160    10N    17W    9    Fairbanks    615233

129

   SPK 129    160    10N    17W    10    Fairbanks    615234

130

   SPK 130    160    10N    17W    10    Fairbanks    615235

131

   SPK 131    160    10N    18W    17    Fairbanks    615236

132

   SPK 132    160    10N    18W    17    Fairbanks    615237

133

   SPK 133    160    10N    18W    16    Fairbanks    615238

134

   SPK 134    160    10N    18W    16    Fairbanks    615239

135

   SPK 135    160    10N    18W    15    Fairbanks    615240

136

   SPK 136    160    10N    18W    15    Fairbanks    615241

137

   SPK 137    160    10N    18W    14    Fairbanks    615242

138

   SPK 138    160    10N    18W    14    Fairbanks    615243

139

   SPK 139    160    10N    18W    13    Fairbanks    615244

140

   SPK 140    160    10N    18W    13    Fairbanks    615245

141

   SPK 141    160    10N    17W    18    Fairbanks    615246

142

   SPK 142    160    10N    17W    18    Fairbanks    615247

143

   SPK 143    160    10N    17W    17    Fairbanks    615248

144

   SPK 144    160    10N    17W    17    Fairbanks    615249

145

   SPK 145    160    10N    17W    16    Fairbanks    615250

146

   SPK 146    160    10N    17W    16    Fairbanks    615251

147

   SPK 147    160    10N    17W    15    Fairbanks    615252

148

   SPK 148    160    10N    17W    15    Fairbanks    615253

 

29


Table of Contents
Index to Financial Statements

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

149

   SPK 149    160    10N    18W    17    Fairbanks    615254

150

   SPK 150    160    10N    18W    17    Fairbanks    615255

151

   SPK 151    160    10N    18W    16    Fairbanks    615256

152

   SPK 152    160    10N    18W    16    Fairbanks    615257

153

   SPK 153    160    10N    18W    15    Fairbanks    615258

154

   SPK 154    160    10N    18W    15    Fairbanks    615259

155

   SPK 155    160    10N    18W    14    Fairbanks    615260

156

   SPK 156    160    10N    18W    14    Fairbanks    615261

157

   SPK 157    160    10N    18W    13    Fairbanks    615262

158

   SPK 158    160    10N    18W    13    Fairbanks    615263

159

   SPK 159    160    10N    17W    18    Fairbanks    615264

160

   SPK 160    160    10N    17W    18    Fairbanks    615265

161

   SPK 161    160    10N    17W    17    Fairbanks    615266

162

   SPK 162    160    10N    17W    17    Fairbanks    615267

163

   SPK 163    160    10N    17W    16    Fairbanks    615268

164

   SPK 164    160    10N    17W    16    Fairbanks    615269

165

   SPK 165    160    10N    17W    15    Fairbanks    615270

166

   SPK 166    160    10N    17W    15    Fairbanks    615271

WLF CLAIMS

WOLF PROJECT, ALASKA

All State of Alaska claims located in the Fort Gibbon Recording District, Melozitna Quadrangle, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   WLF 1    160    2S    23E    7    Kateel River    701959

2

   WLF 2    160    2S    23E    7    Kateel River    701960

3

   WLF 3    160    2S    23E    8    Kateel River    701961

4

   WLF 4    160    2S    23E    8    Kateel River    701962

5

   WLF 5    160    2S    23E    9    Kateel River    701963

6

   WLF 6    160    2S    23E    9    Kateel River    701964

7

   WLF 7    160    2S    23E    10    Kateel River    701965

8

   WLF 8    160    2S    23E    10    Kateel River    701966

9

   WLF 9    160    2S    23E    11    Kateel River    701967

10

   WLF 10    160    2S    23E    11    Kateel River    701968

11

   WLF 11    160    2S    23E    12    Kateel River    701969

12

   WLF 12    160    2S    23E    12    Kateel River    701970

13

   WLF 13    160    2S    24E    7    Kateel River    701971

14

   WLF 14    160    2S    24E    7    Kateel River    701972

15

   WLF 15    160    2S    24E    8    Kateel River    701973

16

   WLF 16    160    2S    24E    8    Kateel River    701974

17

   WLF 17    160    2S    23E    7    Kateel River    701975

18

   WLF 18    160    2S    23E    7    Kateel River    701976

19

   WLF 19    160    2S    23E    8    Kateel River    701977

20

   WLF 20    160    2S    23E    8    Kateel River    701978

21

   WLF 21    160    2S    23E    9    Kateel River    701979

22

   WLF 22    160    2S    23E    9    Kateel River    701980

23

   WLF 23    160    2S    23E    10    Kateel River    701981

24

   WLF 24    160    2S    23E    10    Kateel River    701982

25

   WLF 25    160    2S    23E    11    Kateel River    701983

26

   WLF 26    160    2S    23E    11    Kateel River    701984

 

30


Table of Contents
Index to Financial Statements

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

27

   WLF 27    160    2S    23E    12    Kateel River    701985

28

   WLF 28    160    2S    23E    12    Kateel River    701986

29

   WLF 29    160    2S    24E    7    Kateel River    701987

30

   WLF 30    160    2S    24E    7    Kateel River    701988

31

   WLF 31    160    2S    24E    8    Kateel River    701989

32

   WLF 32    160    2S    24E    8    Kateel River    701990

33

   WLF 33    160    2S    23E    18    Kateel River    701991

34

   WLF 34    160    2S    23E    18    Kateel River    701992

35

   WLF 35    160    2S    23E    17    Kateel River    701993

36

   WLF 36    160    2S    23E    17    Kateel River    701994

37

   WLF 37    160    2S    23E    16    Kateel River    701995

38

   WLF 38    160    2S    23E    16    Kateel River    701996

39

   WLF 39    160    2S    23E    15    Kateel River    701997

40

   WLF 40    160    2S    23E    15    Kateel River    701998

41

   WLF 41    160    2S    23E    14    Kateel River    701999

42

   WLF 42    160    2S    23E    14    Kateel River    702000

43

   WLF 43    160    2S    23E    13    Kateel River    702001

44

   WLF 44    160    2S    23E    13    Kateel River    702002

45

   WLF 45    160    2S    24E    18    Kateel River    702003

46

   WLF 46    160    2S    24E    18    Kateel River    702004

47

   WLF 47    160    2S    24E    17    Kateel River    702005

48

   WLF 48    160    2S    24E    17    Kateel River    702006

49

   WLF 49    160    2S    23E    18    Kateel River    702007

50

   WLF 50    160    2S    23E    18    Kateel River    702008

51

   WLF 51    160    2S    23E    17    Kateel River    702009

52

   WLF 52    160    2S    23E    17    Kateel River    702010

53

   WLF 53    160    2S    23E    16    Kateel River    702011

54

   WLF 54    160    2S    23E    16    Kateel River    702012

55

   WLF 55    160    2S    23E    15    Kateel River    702013

56

   WLF 56    160    2S    23E    15    Kateel River    702014

57

   WLF 57    160    2S    23E    14    Kateel River    702015

58

   WLF 58    160    2S    23E    14    Kateel River    702016

59

   WLF 59    160    2S    23E    13    Kateel River    702017

60

   WLF 60    160    2S    23E    13    Kateel River    702018

61

   WLF 61    160    2S    24E    18    Kateel River    702019

62

   WLF 62    160    2S    24E    18    Kateel River    702020

63

   WLF 63    160    2S    24E    17    Kateel River    702021

64

   WLF 64    160    2S    24E    17    Kateel River    702022

65

   WLF 65    160    2S    23E    19    Kateel River    702023

66

   WLF 66    160    2S    23E    19    Kateel River    702024

67

   WLF 67    160    2S    23E    20    Kateel River    702025

68

   WLF 68    160    2S    23E    20    Kateel River    702026

69

   WLF 69    160    2S    23E    21    Kateel River    702027

70

   WLF 70    160    2S    23E    21    Kateel River    702028

71

   WLF 71    160    2S    23E    22    Kateel River    702029

72

   WLF 72    160    2S    23E    22    Kateel River    702030

73

   WLF 73    160    2S    23E    23    Kateel River    702031

74

   WLF 74    160    2S    23E    23    Kateel River    702032

75

   WLF 75    160    2S    23E    24    Kateel River    702033

76

   WLF 76    160    2S    23E    24    Kateel River    702034

77

   WLF 77    160    2S    24E    19    Kateel River    702035

 

31


Table of Contents
Index to Financial Statements

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

78

   WLF 78    160    2S    24E    19    Kateel River    702036

79

   WLF 79    160    2S    24E    20    Kateel River    702037

80

   WLF 80    160    2S    24E    20    Kateel River    702038

81

   WLF 81    160    2S    23E    19    Kateel River    702039

82

   WLF 82    160    2S    23E    19    Kateel River    702040

83

   WLF 83    160    2S    23E    20    Kateel River    702041

84

   WLF 84    160    2S    23E    20    Kateel River    702042

85

   WLF 85    160    2S    23E    21    Kateel River    702043

86

   WLF 86    160    2S    23E    21    Kateel River    702044

87

   WLF 87    160    2S    23E    22    Kateel River    702045

88

   WLF 88    160    2S    23E    22    Kateel River    702046

89

   WLF 89    160    2S    23E    23    Kateel River    702047

90

   WLF 90    160    2S    23E    23    Kateel River    702048

91

   WLF 91    160    2S    23E    24    Kateel River    702049

92

   WLF 92    160    2S    23E    24    Kateel River    702050

93

   WLF 93    160    2S    24E    19    Kateel River    702051

94

   WLF 94    160    2S    24E    19    Kateel River    702052

95

   WLF 95    160    2S    24E    20    Kateel River    702053

96

   WLF 96    160    2S    24E    20    Kateel River    702054

97

   WLF 97    160    2S    23E    30    Kateel River    702055

98

   WLF 98    160    2S    23E    30    Kateel River    702056

99

   WLF 99    160    2S    23E    29    Kateel River    702057

100

   WLF 100    160    2S    23E    29    Kateel River    702058

101

   WLF 101    160    2S    23E    28    Kateel River    702059

102

   WLF 102    160    2S    23E    28    Kateel River    702060

103

   WLF 103    160    2S    23E    27    Kateel River    702061

104

   WLF 104    160    2S    23E    27    Kateel River    702062

105

   WLF 105    160    2S    23E    26    Kateel River    702063

106

   WLF 106    160    2S    23E    26    Kateel River    702064

107

   WLF 107    160    2S    23E    25    Kateel River    702065

108

   WLF 108    160    2S    23E    25    Kateel River    702066

109

   WLF 109    160    2S    24E    30    Kateel River    702067

110

   WLF 110    160    2S    24E    30    Kateel River    702068

111

   WLF 111    160    2S    24E    29    Kateel River    702069

112

   WLF 112    160    2S    24E    29    Kateel River    702070

113

   WLF 113    160    2S    23E    30    Kateel River    702071

114

   WLF 114    160    2S    23E    30    Kateel River    702072

115

   WLF 115    160    2S    23E    29    Kateel River    702073

116

   WLF 116    160    2S    23E    29    Kateel River    702074

117

   WLF 117    160    2S    23E    28    Kateel River    702075

118

   WLF 118    160    2S    23E    28    Kateel River    702076

119

   WLF 119    160    2S    23E    27    Kateel River    702077

120

   WLF 120    160    2S    23E    27    Kateel River    702078

121

   WLF 121    160    2S    23E    26    Kateel River    702079

122

   WLF 122    160    2S    23E    26    Kateel River    702080

123

   WLF 123    160    2S    23E    25    Kateel River    702081

124

   WLF 124    160    2S    23E    25    Kateel River    702082

125

   WLF 125    160    2S    24E    30    Kateel River    702083

126

   WLF 126    160    2S    24E    30    Kateel River    702084

127

   WLF 127    160    2S    24E    29    Kateel River    702085

128

   WLF 128    160    2S    24E    29    Kateel River    702086

 

32


Table of Contents
Index to Financial Statements

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

129

   WLF 129    160    2S    23E    31    Kateel River    702087

130

   WLF 130    160    2S    23E    31    Kateel River    702088

131

   WLF 131    160    2S    23E    32    Kateel River    702089

132

   WLF 132    160    2S    23E    32    Kateel River    702090

133

   WLF 133    160    2S    23E    33    Kateel River    702091

134

   WLF 134