Schedule 13D
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. _____)*
(Name of Issuer)
Common Stock, $.001 par value
(Title of Class of Securities)
(CUSIP Number)
Michael D. Rosenthal
SNR Denton US LLP
233 S. Wacker Dr., Suite 7800
Chicago, Illinois 60606
(312) 876-8000
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
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1 |
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NAMES OF REPORTING PERSONS
William Farley |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
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(a) o |
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(b) þ |
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SEC USE ONLY |
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SOURCE OF FUNDS (SEE INSTRUCTIONS) |
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PF |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
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o |
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CITIZENSHIP OR PLACE OF ORGANIZATION |
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Illinois
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7 |
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SOLE VOTING POWER |
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NUMBER OF |
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5,286,800* |
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SHARES |
8 |
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SHARED VOTING POWER |
BENEFICIALLY |
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OWNED BY |
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0 |
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EACH |
9 |
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SOLE DISPOSITIVE POWER |
REPORTING |
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PERSON |
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5,286,800* |
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WITH |
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SHARED DISPOSITIVE POWER |
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0 |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
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5,286,800* |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
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9.32% |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
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IN |
* Comprised of (i) 3,286,800 shares
of Common Stock owned by Global Investment I, LLC, of which Mr. Farley is the member,
(ii) 1,111,111 shares of Common Stock owned by LV Ventures, Inc.,
of which Mr. Farley is the sole stockholder and director, (iii) 444,444 shares of
Common Stock to be acquired by LV Ventures, Inc. (subject to certain customary conditions)
on November 15, 2011 that certain Stock Purchase Agreement dated as of October 14, 2011 as described herein and (iv) 444,445 shares of Common Stock to be acquired by
LV Ventures, Inc. (subject to certain customary conditions) on December 15, 2011 that certain Stock
Purchase Agreement dated as of October 14, 2011 as described herein.
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1 |
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NAMES OF REPORTING PERSONS
LV Ventures, Inc.. |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
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(a) o |
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(b) þ |
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3 |
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SEC USE ONLY |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS) |
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WC |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
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o |
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CITIZENSHIP OR PLACE OF ORGANIZATION |
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Delaware
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7 |
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SOLE VOTING POWER |
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NUMBER OF |
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2,000,000* |
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SHARES |
8 |
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SHARED VOTING POWER |
BENEFICIALLY |
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OWNED BY |
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0 |
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EACH |
9 |
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SOLE DISPOSITIVE POWER |
REPORTING |
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PERSON |
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2,000,000* |
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WITH |
10 |
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SHARED DISPOSITIVE POWER |
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0 |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
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2,000,000* |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
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3.53% |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
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CO |
* Comprised of (i) 1,111,111 shares of Common Stock owned by LV Ventures, Inc., of which Mr. Farley is the sole stockholder and director, (ii) 444,444 shares of Common Stock to be acquired (subject to certain customary conditions) on November 15, 2011 that certain Stock Purchase Agreement dated as of October 14, 2011 as described herein and (iii) 444,445 shares of Common Stock to be acquired (subject to certain customary conditions) on December 15, 2011 that cer
tain Stock Purchase Agreement dated as of October 14, 2011 as described herein.
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1 |
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NAMES OF REPORTING PERSONS
Global Investments I, LLC |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
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(a) o |
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(b) þ |
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SEC USE ONLY |
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SOURCE OF FUNDS (SEE INSTRUCTIONS) |
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AF |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
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o |
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CITIZENSHIP OR PLACE OF ORGANIZATION |
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Maine
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SOLE VOTING POWER |
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NUMBER OF |
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3,286,800 |
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SHARES |
8 |
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SHARED VOTING POWER |
BENEFICIALLY |
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OWNED BY |
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0 |
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EACH |
9 |
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SOLE DISPOSITIVE POWER |
REPORTING |
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PERSON |
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3,286,800 |
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WITH |
10 |
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SHARED DISPOSITIVE POWER |
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0 |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
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3,286,800 |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
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o
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
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5.80% |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
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OO |
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ITEM 1. SECURITY AND ISSUER
This statement on Schedule 13D (this Schedule 13D) relates to the Common Stock, $.0001 par
value per share (the Common Stock or the Shares), of Casablanca Mining, Ltd., a Nevada
corporation (the Issuer or the Company), the principal executive offices of which are located
at 9880 N. Magnolia Ave. #176, Santee, CA 92071.
ITEM 2. IDENTITY AND BACKGROUND
(a) This Schedule 13D is being filed on behalf of William Farley, LV Ventures, Inc and Global
Investments I, LLC who are sometimes referred to individually as a Reporting Person and
collectively as the Reporting Persons.
In accordance with General Instruction C to Schedule 13D, set forth on Schedule I annexed to
this Statement and incorporated herein by reference, is the name, business address and present
principal occupation or employment, and the name and address of any corporation or other
organization in which such occupation or employment is conducted, of each natural person that is an
executive officer or director of the LV Ventures, Inc. and each natural person that is a manager of
Global Investments I, LLC as of the date hereof.
Because
William Farley is the sole stockholder and member of the Board of Directors of LV
Ventures, Inc. and the sole member of Global Investments I, LLC, Mr. Farley may be deemed,
pursuant to Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the Exchange
Act), to be the beneficial owners of all shares of Common Stock held by LV Ventures, Inc. and
Global Investments I, LLC. The Reporting Persons are filing this Statement jointly, as they
may be considered a group under Section 13(d)(3) of the Exchange Act. However, neither
the fact of this filing nor anything contained herein shall be deemed to be an admission by any
Reporting Person that such a group exists.
(b) - (c) Mr. Farleys is principally engaged as a private investor and each of LV Ventures,
Inc. and Global Investments I, LLC are investment vehicles owned by Mr. Farley. The business
address for each of the Reporting Persons is 233 S. Wacker Dr., Suite 2150, Chicago, Illinois 60606
The information on Schedule I hereto is incorporated herein by reference.
(d) and (e) During the last five years, none of the Reporting Persons or, to the knowledge of
the Reporting Persons, any individual listed on Schedule I, has been (i) convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors) or (ii) a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as a result of such
proceeding was or is subject to a judgment, decree or final order enjoining future violations of,
or prohibiting or mandating activities subject to, federal or state securities laws or funding any
violation with respect to such laws.
(f) The information regarding citizenship on Schedule I hereto is incorporated herein by
reference.
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Information with respect to each of the Reporting Persons is given solely by such Reporting
Person, and no Reporting Person assumes responsibility for the accuracy or completeness of
information given by another Reporting Person. By their signatures on this Schedule 13D, each
of the Reporting Persons agrees that this Schedule 13D is filed on behalf of such Reporting
Person.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On September 13, 2011, Global Investments I, LLC acquired 1,583,333 shares of Common Stock
from an Affiliate of the Issuer in conversion of a $250,000 note (including principal and $2,000 of
interest) issued by such affiliate of the Issuer in June of 2011 on account of a loan made by
Global Investments I, LLC using personal funds of Mr. Farley. Prior to that Global Investments I,
LLC owned 1,703,467 shares of Common Stock, acquired in private negotiated cash transactions from
Affiliates of the Issuer.
On September 13, 2011, LV Ventures purchased 666,667 shares of Common Stock in a privately
negotiated transaction from an affiliate of the Issuer for an aggregate price of $400,000, using
cash from its working capital. On October 14, 2011, LV Ventures, Inc. purchased 444,444 shares of
Common Stock from the Issuer for cash from the working capital of LV Ventures, Inc. for a purchase
price of $1.20 per share pursuant to the terms of that certain Stock Purchase Agreement, dated as
of October 14, 2011 by and between Issuer and LV Ventures, Inc. (the Stock Purchase Agreement).
Pursuant to the Purchase Agreement LV Ventures has further agreed to purchase, and the Issuer has
agreed to purchase an additional 444,444 shares of Common Stock on November 15, 2011 and an
additional 444,445 share of Common Stock on December 15, 2011 for a cash purchase price of $1.20
per share. The purchase and sale of Common Stock on those dates is subject to customary closing
conditions, and LV Ventures, Inc. anticipates paying the purchase price in cash from working
capital.
ITEM 4. PURPOSE OF TRANSACTION
The Reporting Persons acquired beneficial ownership of the shares of Common Stock disclosed
herein as part of its investment activities.
On October 14, 2011, LV Ventures, Inc. entered into the Stock Purchase Agreement (the Stock
Purchase Agreement) with the Issuer. Pursuant to the Stock Purchase Agreement, LV Ventures
acquired from the Seller 444,444 shares of Common Stock for $1.20 per share and agreed to purchase
an additional 444,444 shares of Common Stock on November 15, 2011 and 444,445 of Common Stock on
December 15, 2011 on the same terms and conditions, and subject to customary closing conditions.
As a condition to the initial closing under the Stock Purchase Agreement, Mr. Farley was appointed
as a director of the Issuer, and the Issuer agreed to nominate a designee of LV Ventures, Inc. for
the Board of Directors of the Issuer so long as LV Ventures, Inc. and its affiliates beneficially
own at least 5% of the outstanding stock of the Issuer. The foregoing summary of the Stock Purchase
Agreement is qualified in its entirety by reference to that document, a copy of which is Exhibit 1
to this Schedule 13D and is incorporated by reference herein. As a condition to the initial
closing pursuant to the Stock Purchase Agreement, LV Ventures, Inc. entered into a Registration
Rights Agreement with the Issuer (the Registration Rights Agreement) pursuant to which LV
Ventures, Inc. was granted two demand, short form and piggyback registration rights. The foregoing
summary of the Registration Rights Agreement is qualified in its entirety by reference to that
document, a copy of which is Exhibit 2 to this Schedule 13D and is incorporated by reference
herein.
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Each Reporting Person intend to review and evaluate the investment in the Common Stock of the
Issuer beneficially by such Reporting Person on an ongoing basis and, as a part of such review and
evaluation, may communicate with the Issuers management, directors and other shareholders.
Depending on various factors, including but not limited to, the evaluation of the business and
prospects of the Issuer, the price of the Common Stock, the terms and conditions of the
transaction, prevailing market conditions and such other considerations as each such Reporting
Person deems relevant, each Reporting Person may at any time or from time to time, and subject to
any applicable regulatory requirements, acquire additional shares of Common Stock or other
securities convertible into or exercisable or exchangeable for shares of Common Stock or other
derivative securities relating to the Common Stock from time to time on the open market, in
privately-negotiated transactions, or upon the exercise or conversion of securities convertible
into or exercisable or exchangeable for shares of Common Stock.
Each Reporting Person also may, at any time, subject to compliance with any applicable
regulatory requirements, dispose of some or all of the Common Stock, or such other securities of
the Issuer such person beneficially owns or may subsequently acquire depending on various factors,
including but not limited to, their evaluation of the business and prospects of the Issuer, the
price of the Common Stock, the terms and conditions of the transaction and prevailing market
conditions, as well as liquidity and diversification objectives.
The Reporting Persons, together with their representatives, may, at any time and from time to
time, to engage in a proactive dialogue with members of the Board of Directors and management of
the Issuer, as well as with other stockholders and other interested parties, regarding the
undervaluation and strategic configuration of the Issuer, potential strategic alternatives
available to the Issuer to increase stockholder value and other matters relating to an investment
in the Common Stock of the Issuer, including, without limitation, the business, operations,
governance, management, strategy and future plans of the Issuer. Each of the Reporting Persons also
intends to participate in and influence the affairs of the Issuer through the exercise of voting
rights with respect to the shares of Common Stock beneficially owned.
Except as indicated herein, none of the Reporting Persons, nor, to the knowledge of any of the
Reporting Persons, any individuals listed on Schedule I, have any plan or proposal that related to
or would result in any of the transactions or other matters specified in clauses (a) through (j) of
Item 4 of Schedule 13D. Each of the Reporting Person may, at any time and from time to time,
review or reconsider his or its position and/or change his or its purpose and/or formulate plans or
proposals with respect thereto.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) - (b) Based on 55,370,285 shares of Common Stock outstanding as of August 19, 2011, as
reported by the Issuer in its Form 10-Q filed with the SEC on August 22, 2011 plus the shares
issued and to be issued pursuant to the Stock Purchase Agreement, the shares of Common Stock owned
by the Mr. Farley represent approximately 9.32% of the outstanding Common Stock, of which
approximately 5.80% of the outstanding shares of Common Stock are owned by Global Investments I,
LLC and 3.53% of the
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outstanding shares of Common Stock are owned by LV Ventures, Inc.. Global
Investments I, LLC and LV Ventures, Inc. each have the sole power to direct the vote and
disposition of the Shares owned by them on the date of this Statement. However, by virtue of
being the sole member of Global Investment I, LLC and sole stockholder and director of LV Ventures,
Inc., Mr. Farley may be deemed, pursuant to Rule 13d-3 under the Exchange Act, to be the
beneficial owner of the Shares owned by the other Reporting Persons
and to have sole power over the voting and disposition of such Shares as a result of its
having the sole power to make voting and disposition decisions on behalf of the other Reporting
Persons with respect to such Shares.
Beneficial ownership is determined according to the rules of the SEC and generally includes
any shares over which a person possesses sole or shared voting or investment power as well as any
shares that such person has the right to acquire within 60 days of the applicable date, including
through the exercise of options or other rights. Shares of Common Stock not currently outstanding
which are subject to options, warrants or other rights that are exercisable or convertible within
60 days after the applicable date are deemed outstanding for the purpose of calculating the
percentage ownership of the person holding those options, warrants or other rights but are not
treated as outstanding for the purpose of calculating the percentage ownership of any other person.
Except
for the shares of Common Stock owned by the Reporting Persons and as
reported in Item 6, as of the date hereof, none of
the Reporting Persons, or to the knowledge of the Reporting Persons, any of the persons listed on
Schedule I, owns any Common Stock of the Issuer or has any right to acquire, directly or
indirectly, any beneficial ownership of other Common Stock of the Issuer.
(c) Except as described in Item 4 hereof, which is incorporated herein by reference, none of
the Reporting Persons, or to the knowledge of the Reporting Persons, any of the persons listed on
Schedule I, has engaged in any transaction during the past 60 days in any shares of Common Stock.
(d) Except
as disclosed in this Schedule 13D, no person other than the
Reporting Persons is known to
any Reporting Person to have the right to receive or the power to direct the receipt of dividends
from or the proceeds from the sale of, any of the securities of the Issuer reported on this
Schedule 13D.
(e) Not applicable.
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ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS, OR RELATIONSHIPS RESPECT TO SECURITIES OF THE
ISSUER
On December 20, 2010, Global Investments II, LLC entered into a Consulting Agreement (the
Consulting Agreement) with the Issuer pursuant to which Global Investments II, LLC agreed to
provide certain consulting services to the Issuer during a three year terms. Global Investments
II, LLC is a Maine limited liability company in which Mr. Farley is the sole member (and has the
same managers as Global Investments I, LLC). As consideration for provision of the Consulting
Services, the Issuer issued to Global Investments II, LLC a warrant (the Warrant) to purchase
7,000,000 shares of Common Stock for $.02 per share, subject to the following conditions to
exercise (none of which, to the knowledge of the Reporting Persons, have been currently achieved):
a) 250,000 shares vest upon the beginning of exploration of the companys Casuto Wash
properties;
b) 250,000 shares vest upon the completion of exploration of the companys Casuto Wash
properties;
c) 250,000 shares vest upon the results of exploration of the companys Casuto Wash
properties;
d) 1,750,000 shares vest upon execution of a Joint Venture Agreement between the company and
Freeport-McMoran Copper & Gold, Inc. or any of its associated companies for the mining of gold on
the companys properties;
e) 1,500,000 shares vest upon the first capital financing or funding either directly or
indirectly introduced to the company through the efforts of the Holder or with the Holders
assistance;
f) 1,500,000 shares vest upon the second capital financing or funding either directly or
indirectly introduced to the company through the efforts of the Holder or with the Holders
assistance; and
g) 1,500,000 shares vest upon the third capital financing or funding either directly or
indirectly introduced to the company through the efforts of the Holder or with the Holders
assistance.
The exercisability of the warrant is to accelerate upon the earlier of (x) the date upon
Issuer sells equity securities (including convertible notes, warrants and other securities which
are convertible into or exchangeable for equity securities of the Company) which causes the
aggregate amount of gross cash proceeds for sales of securities of such type after December 20,
2010 to equal or exceed $40,000,000 and (y) immediately prior to the consummation of a Change of
Control Transaction (as defined therein).
The foregoing summary of the Consulting Agreement and the Warrant are qualified in its
entirety by reference to those documents, copies of which are filed as Exhibit 3 and Exhibit 4,
respectively, to this Schedule 13D and are incorporated by reference herein.
Except as set forth in Items 4 and 5 hereof, which are incorporated herein by reference, or as
described in this Item 6, to the knowledge of the Reporting Person, there are no other contracts,
arrangements, understandings or relationships (legal or otherwise) between the persons named in
Item 2 and any person with respect to any securities of the Issuer, including but not limited to,
transfer or voting of any of the securities of the Issuer, joint ventures, loan or option
arrangements, puts or calls, guarantees of profits, division of profits or loss, or the giving or
withholding of proxies. The foregoing summary is qualified in its entirety by reference to the
full text of Exhibit 1 to this Schedule 13D, which exhibit is incorporated herein by reference.
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ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
See Exhibit Index (appearing following Schedule 1 hereto) which is incorporated herein by
reference.
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, the undersigned certify
that the information set forth in this statement is true, complete, and correct.
Pursuant to Rule 13d-1(k) (1) (iii) of Regulation 13D-G of the General Rules and Regulations
of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended,
the undersigned agree that the attached statement is filed on behalf of each of them.
Date: October 24, 2011
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LV VENTURES, INC.
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By: |
/s/
WILLIAM FARLEY |
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Name: |
William Farley |
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Title: |
Chief Executive Officer |
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GLOBAL INVESTMENTS I, LLC
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By: |
/s/
WILLIAM FARLEY |
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Name: |
William Farley |
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Title: |
Sole Member |
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/s/ WILLIAM FARLEY
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Name: |
William Farley |
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SCHEDULE I
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Position and Principal |
Name and Business Address |
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Citizenship |
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Occupation |
William Farley
233 S. Wacker Dr., Suite
2150, Chicago, Illinois
60606
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United States
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Chief Executive Officer and
Director of LV Ventures,
Inc.
Private Investor |
Marty Pajor
233 S. Wacker Dr., Suite
2150, Chicago, Illinois
60606
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United States
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Vice President and
Secretary of LV Ventures,
Inc.
(principal occupation)
Manager of Global
Investments I, LLC |
Todd Sluzas
233 S. Wacker Dr., Suite
2150, Chicago, Illinois
60606
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United States
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Chief Financial Officer of
LV Ventures, Inc.
(principal occupation)
Manager of Global
Investments I, LLC |
- 12 -
EXHIBIT INDEX
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Number |
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Description |
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1. |
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Stock Purchase Agreement, dated as of October 14, 2011, by and between LV Ventures, Inc. and
Casablanca Mining, Ltd. Incorporated by reference to Exhibit 10.1 to Issuers Current Report
on Form 8-K filed on October 10, 2011. |
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2. |
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Registration Rights Agreement, dated as of October 14, 2011, by and between LV Ventures, Inc.
and Casablanca Mining, Ltd. Incorporated by reference to Exhibit 10.2 to Issuers Current
Report on Form 8-K filed on October 10, 2011. |
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3. |
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Consulting Agreement, dated as of December 20, 2011, by and between Global Investments II,
LLC and USD Energy Corp. (now known as Casablanca Mining, Ltd.). |
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4. |
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Stock Purchase Warrant, dated as of December 20, 2011, issued by USD Energy Corp. (now known
as Casablanca Mining, Ltd.) to Global Investments II, LLC |
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