The mining operations at the Deer Trail Mine -
have been conducted through Unico's subsidiary,
Deer Trail Mining Company, LLC
("Deer Trail Mining Company" or "DTMC")
since soon after DTMC was formed in late June, 2004.
The mining operations at -
The Bromide Basin Mines -
have been conducted through Unico's subsidiary,
Bromide Basin Mining Company, LLC -
("Bromide Basin Mining Company" or "BBMC") -
since soon after BBMC was formed in late June, 2004.
Future mining operations at -
The Silver Bell Mine -
will be conducted through Unico's subsidiary,
Silver Bell Mining Company, Inc. ("SBMC").
Deer Trail Mining Company, LLC -
On March 30, 1992, Unico,
Incorporated entered into a Mining Lease and Option
to Purchase agreement with -
Deer Trail Development Corporation,
with headquarters in Dallas, Texas.
Deer Trail Development Corporation -
is now known as Crown Mines, L.L.C.
The lease was to run for a period of 10 years,
and cover 28 patented claims,
5 patented mill sites -
and 171 unpatented claims -
located approximately 5 miles South of
Marysvale, Utah.
It includes mine workings known as -
The Deer Trail Mine,
the PTH Tunnel -
and the Carisa and Lucky Boy mines.
Effective December 1, 2001,
a new lease agreement was entered into
between the parties covering the same property
for a period of thirty (30) months.
It was subsequently amended and extended through
a series of amendments, with the most recent amendment,
the Fifth Modification of Mining Lease and Option
to Purchase being executed June 29, 2007.
It extended the lease term and option to purchase
through July 12, 2007.
Unico and Crown Mines
did negotiating the final sale agreement
covering the sale of the Deer Trail Mine Claims.
A copy of this Amendment is attached to this
Form 10-QSB as Exhibit 10.78.
Unico, Inc. Announces Recording of Quitclaim Deed
and Water Rights Deed to Complete
Deer Trail Mine Purchase in Marysvale, Utah
has been recorded with the county recorder's office
in Piute County, Utah and ownership of the property
has been fully conveyed from Crown Mines LLC to
Unico's wholly owned subsidiary,
The Deer Trail Mining Company, LLC.
With all appropriate documents executed and recorded
and the purchase of the property completed,
Unico is expected to book -
the Deer Trail Mine property -
as a $4 million asset of its future quarterly
and annual financial reports.
In August 2006, Deer Trail Mining Company
entered into a Mining Lease with Joel Johnson
covering the Clyde, Clyde Intermediate and
Crown Point claims.
These claims are located near the Deer Trail Mine.
Deer Trail Mining Company has leased the claims
for the purpose of conducting mine exploration,
evaluation, and possible mining activities
on the claims.
The Mining Lease is for two years, with options
to extend the lease for 50 additional one year periods.
Under the terms of the Mining Lease,
Deer Trail Mining Company
paid initial down payments totaling $31,000
with $4,000 due in the second year of the lease.
If Deer Trail Mining Company -
elects to extend the lease, it must pay $3,000 for
the first extension year, and the annual lease
extension payment increases ten percent (10%)
per year thereafter.
Additionally, Deer Trail Mining Company -
will pay three percent (3%) of the gross sale proceeds
from the sale of any ore concentrates,
or other mineral resources extracted from the claims.
In September 2006, Deer Trail Mining Company
entered into a Non-Patented Mining Claims Lease
covering approximately 70 additional claims
covering approximately 1,500 acres in
Piute County Utah for the purpose of exploration,
evaluation and mining activities.
In consideration for the rights under the agreement,
the Deer Trail Mining Company -
agreed to pay the lease holders $7,000 per year for
each of the first three years.
Deer Trail Mining Company -
has the right to extend the lease for 50 additional
one year periods.
If extended by Deer Trail Mining Company,
the annual lease payment is $10,000 in each of years
four and five, and thereafter the annual lease
payment increases by ten percent (10%) per year.
In addition to the annual lease payments,
Deer Trail Mining Company -
has also agreed to pay an amount equal to
three percent (3%) of the gross sales proceeds
from all ore, concentrates, and all other
productions of mineral resources extracted
from the claims.
The agreement contains an option to purchase
the claims exercisable at $350,000 during
the five first years of the lease.
The exercise price increases $50,000 per year
thereafter.
It may only be exercised while the lease is effective.
Following the formation of -
the Deer Trail Mining Company -
in June 2004, Unico assigned all
of the various assets, liabilities and operations
associated with the Deer Trail Mine to
Deer Trail Mining Company -
which has assumed responsibility for making payments
under the Deer Trail Lease.
Since June 2004 -
Deer Trail Mining Company -
has assumed operations,
ownership and management control of -
the Deer Trail Mine.
Deer Trail Mining Company -
presently has 12 full time employees,
1 part time employee and -
7 consultants.
Unico worked for more than two years to reopen -
The Deer Trail Mine.
Unico commenced mining activities in late March
or early April 2001 on the Deer Trail Mine.
To date, the mining activities have been fairly limited.
There have been between 2 and 5 miners at various times
working full time in the Deer Trail Mine -
both on mine development work and production work
until approximately October 2003.
Their efforts were concentrated in the 3400 Area
of the mine, from which they removed approximately 1,000 tons
of ore per month.
The ore was stock-piled and some of it has been crushed.
Some of the employees have worked on mine maintenance.
fwiw -
make sure to do your own dd....
unicomining.com./index.php
Btw.
Note....
it doesn't matter how good progress a company performing -
it will always in all countries be -
666 bolshevikz making -
rare communistic demands and negativity -
all since stalin, trotsky, lenin, marxist anti-Christian -
time....
Imo. Tia.
God Bless
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