On December 2, 2004, Magnus International Resources Inc.'s joint venture company, Long Teng Mining Ltd. ("Long Teng"), entered an agreement with Kangding Kangma Mining Ltd. Co. ("Kangding"), of Sichuan Province, China, to purchase a mining license for approximately 3 square kilometers in Sichuan Province known as the Xintaizi mining area (the "Property"). Long Teng is a joint venture company formed under a under a joint venture agreement signed July 6, 2004 between Magnus International Resources, Inc. ("Magnus") and the Yunnan Province Nuclear Industry Brigade 209 ("Team 209") of China.
Under the agreement to purchase the mining license, Long Teng is to pay 2,100,000 RMB (approximately $253,725 US dollars on December 8, 2004) to Kangding for the mining license after executing the agreement. One hundred thousand (100,000) RMB was due on the day of executing the agreement, 950,000 RMB is due 15 days from the execution of the agreement, and 1,050,000 RMB is due on the day the transfer of the mining license is successfully registered and effected under Chinese law.
The Property is located at Kongyo Villiage, Kangding County, in Sichuan Province, China. Geologically, the Property is located at the inter-contact belt between the Cuanxi altiplano and Sichuan basins. It is at the Western limb of the Yangzizhunditai and the Northern end of the Kangdiandi axis. The elevation is 1900 to 3200 meters, and the mine is a five hour drive from Chengdu City.
The mining license covers a 3.0877 square kilometer mining area, with a production capacity of 10,000 tons per year. The effective period of the license is December 1, 2003 to December 1, 2006, however, this mining license may be renewe