a. the vendor is the beneficial owner of the claims representing the property known as the “ copper hills # 1 property ” ; b. the trustee ( as herein defined ) is the recorded holder of the claims, holding the same in trust, as a bare trustee, for the benefit of the vendor ; c. the vendor has agreed to sell all right, title and interest in and to the claims to the purchaser ( as herein defined ) pursuant to the terms and conditions hereinafter set forth ; article 1 definitions 1. 1 for the purposes of this agreement the following words and phrases shall have the following meanings, namely : 1. 1. 1 “ business day ” means a day other than a saturday, sunday or statutory holiday in the province of alberta ; 1. 1. 2 “ claims ” means the mining claims set forth and described in schedule “ a ” attached hereto ; 1. 1. 3 “ commercial production ” means the mining, extraction, processing and recovery for sale of products from the copper hills # 1 property, excluding the taking of minerals therefrom for the purpose of bulk sampling or determining the amenability of the minerals to beneficiation processes or mining ; 1. 1. 4 “ copper hills # 1 property ” shall have the meaning ascribed to it in preamble a ; 1. 1. 5 “ deemed gross sale proceeds ” of all sales occurring in respect of the disposition of products ( as hereinafter defined ) shall mean and be determined by multiplying the total number of troy ounces of the particular products sold within that last completed calendar quarter by the following : ( a ) in the case of gold, platinum and palladium, the arithmetic mean of the daily london bullion market afternoon fixing for the calendar quarter per ounce of the respective products ; and ( b ) in the case of silver, the arithmetic mean of the weekly handy & harman price per ounce of silver as quoted in “ metals week ” for the last 2 ( two ) weeks which conclude within that calendar quarter, but in the event “ metals week ” is not published or if for any reason such quotation is not available the arithmetic mean of the handy & harman base price quote as published in the “ wall street journal ” for the calendar quarter will be utilized ; 1. 1. 6 “ encumbrances ” means any financial charge, encumbrance or title defect of whatever kind or nature, regardless of form,