Mineral Property Interests | 3. Mineral Property Interests Balance at January 1, 2016 $ 1 Carson Property acquisition (a) 15,000 Impairment charge Carson Property (a) (15,000) Balance at December 31, 2016 $ 1 Rollo Property (c) 25,000 Janes Reef Property (d) 16,000 Asquith Property (e) 10,000 C1 Mortimer Property (f) 941,460 Impairment charge (c) (d) (e) (f) (992,460) Balance at December 31, 2017 and 2018 $ 1 C1 Mortimer amendment (f) 359,760 Chewitt Property (g) 60,360 King Solomon Mines Property (h) 1,280,000 Impairment charge (f) (g) (h) (1,700,120) Balance at December 31, 2019 $ 1 Borden Lake North (i) 15,000 Impairment charge (i) (15,000) Halcrow, McCool, Seymour Lake (j) 145,000 Impairment charge (j) (145,000) Balance at June 30, 2020 $ 1 a) Carson Property On December 23, 2010, the Company entered into a mineral property acquisition agreement with 2214098 Ontario Ltd. pursuant to which the Company acquired the mining lease to the Carson Property. Under the acquisition agreement, the Company was required to pay: 1. Cash consideration of $99,060 (CDN$100,000) to be paid according to an installment schedule between April 30, 2011 and December 31, 2015; 2. Equity consideration of 1,000,000 shares of common stock to be issued on or before March 30, 2011; and 3. Royalty of 3% of all net smelter returns upon commencement of commercial production of the property. The Carson Property is 1,812 acres in area and is located north by north-west of the City of Yellowknife, in the Northwest Territories, Canada. The Companys interest in the property consists of a 21-year mining lease, which expires on June 30, 2024 and for which the Company was responsible for making annual lease payments of $1,141, in order to keep the lease in good standing. On December 13, 2012, the Company terminated its acquisition agreement for the Carson Property with 2214098 Ontario Ltd. Under the terms of the agreement, the Company returned the property to the vendor, and both parties are released from any further obligation under the agreement. The Company had reflected the termination as a loss on disposal of mineral property on the statement of operations of $112,686 for the year ended December 31, 2012. During 2016, the Company reacquired the Carson Property in exchange for 300,000 shares of common stock to be issued valued at $15,000. In 2016, the Company recognized an impairment charge of $15,000 on the carrying value of the Carson Property based on the substantial doubt of the Companys ability to raise adequate financing. b) Kenty Gold Property McClay Conveyed Property As consideration for the sale of the McClay Conveyed Property, the Company agreed to deliver the following to McClay in the manner set forth below: (a) Closing Date (b) February 4, 2013 (i) CDN$100,000 on or before February 4, 2013; and (ii) 200,000 common shares of Company on or before February 4, 2013. (c) April 4, 2013 (i) CDN$150,000 on or before April 4, 2013; and (ii) 200,000 common shares of Company on or before April 4, 2013. (d) October 4, 2013 (i) CDN$300,000 on or before October 4, 2013; and (ii) 250,000 common shares of Company on or before October 4, 2013. (e) April 4, 2014 (i) CDN$300,000 on or before April 4, 2014; and (ii) 250,000 common shares of Company on or before April 4, 2014. (f) October 4, 2014 (i) CDN$300,000 on or before October 4, 2014; and (ii) 250,000 common shares of Company on or before October 4, 2014. (g) April 4, 2015 (i) CDN$300,000 on or before April 4, 2015; and (ii) 550,000 common shares of Company on or before April 4, 2015. (h) Reserve (i) Production (i) Upon production of 1,000,000 Troy Ounces of Gold (Aurum Metal) from the McClay Conveyed Property, Company shall pay CDN$1,000,000 to McClay. b) Kenty Gold Property (continued) (ii) Upon production of 3,000,000 Troy Ounces of Gold (Aurum Metal) from the McClay Conveyed Property, Company shall pay CDN$2,000,000 to McClay. (iii) Upon production of 5,000,000 Troy Ounces of Gold (Aurum Metal) from the McClay Conveyed Property, Company shall pay CDN$2,000,000 to McClay. (j) Early Buyout Option In addition, upon the Commencement of Commercial Production (as defined in the McClay Agreement), the Company shall pay to McClay a royalty in an amount equal to three percent (3%) of all Net Smelter Returns (as defined in the McClay Agreement) on minerals mined from the McClay Conveyed Property (the Seller NSR) on the terms and conditions as set out in the McClay Agreement. Notwithstanding the foregoing, at any point in time following the closing date and upon the Companys sole election, McClay shall sell to Company fifty percent (50%) of the Seller NSR for a purchase price of CDN$1,500,000. During 2014, the Company recognized an impairment charge of $1,975,999 on the carrying value of the Kenty Property based on the substantial doubt of the Companys ability to raise adequate financing to further develop and explore this property. At present the Company is involved in three material litigation proceedings. These actions are ongoing in the Ontario Superior Court of Justice and all involve the ownership of the Kenty Property. The first application is an application brought by Emerald Isle Resources on May 14, 2013 seeking a declaration that it is the legal owner of the Kenty Property. The application alleges: (i) that Brian A. McClay, the owner of the Kenty Property, had sold 100% of his interest therein to Emerald Isle in 1986, although Emerald Isle did not register its acquisition of the Kenty Property at that time; and (ii) that at the time he entered into an agreement to sell the Kenty Property to the Company, Mr. McClay had no interest in the Kenty Property to sell. The Company has responded to that application. By separate application commenced March 13, 2014 the Company and its co- applicant, Mr. McClay commenced a separate proceeding in the Ontario Superior Court of Justice seeking a formal declaration that Mr. McClay is the sole owner of a 100% undivided interest in the Kenty Property subject only to a smelting agreement and a Mineral Property Acquisition Agreement in favor of the Company. These matters remain to be resolved. In separate proceedings, on May 13, 2015, the Company filed a Statement of Claim against Mr. McClay seeking damages totaling $10,750,000 in the event that the Application of the Company and Mr. McClay is unsuccessful and on or about September 28, 2015, Mr. McClay filed a counterclaim against the Company alleging that the Company has failed to deliver the consideration for the purchase of the Kenty Property and therefore has no rights thereto, and seeking damages in the amount of $2,500,000 against the Company. The matter remains in abeyance pending the resolution of the two Applications. c) Rollo Property In 2017, the Company entered into a mineral property acquisition agreement pursuant to which the Company acquired the mining lease to the Rollo Property. Under the acquisition agreement, the Company is required to pay: 1. Equity consideration of 250,000 shares of common stock to be issued at $0.10 per share. In 2017, the Company issued 250,000 shares of common stock in satisfaction of the purchase price for a total of $25,000. In 2017, the Company recognized an impairment charge of $25,000 on the carrying value of the Rollo Property based on the substantial doubt of the Companys ability to raise adequate financing to further develop and explore this property. In 2019 the mineral rights to the property expired and were not renewed. d) Janes Reef Property In 2017, the Company entered into a mineral property acquisition agreement, pursuant to which the Company acquired the mining lease to the Janes Reef Property. Under the acquisition agreement, the Company is required to pay: 1. Equity consideration of 160,000 shares of common stock to be issued at $0.10 per share. In 2017, the Company issued 160,000 shares of common stock in satisfaction of the purchase price for a total of $16,000. In 2017, the Company recognized an impairment charge of $16,000 on the carrying value on the Janes Reef Property based on the substantial doubt of the Companys ability to raise adequate financing to further develop and explore this property. In 2019 the mineral rights to the property expired and were not renewed. e) Asquith Property In 2017, the Company entered into a mineral property acquisition agreement pursuant to which the Company acquired the mining lease to the Asquith Property. Under the acquisition agreement, the Company is required to pay: 1. Equity consideration of 100,000 shares of common stock to be issued at $0.10 per share. In 2017, the Company issued 100,000 shares of common stock in satisfaction of the purchase price for a total of $10,000. In 2017, the Company recognized an impairment charge of $10,000 on the carrying value on the Asquith Property based on the substantial doubt of the Companys ability to raise adequate financing to further develop and explore this property. In 2019 the mineral rights to the property expired and were not renewed. f) C1 Mortimer Property In January 2017, the Company entered into a Joint Venture Agreement whereby it has an Option to acquire a fifty per cent (50%) interest in a claim known as the C1- Mortimer property. In order to earn the fifty per cent interest the Company must: 1. Pay $10,000 CDN upon signing; 2. Pay 10 million shares of common stock of the Company to the prospectors pro rata upon signing, which was reduced to 9,850,000 shares of common stock, of which 8,840,000 were issued and the remaining are included in stock to be issued. 3. Spend five hundred thousand ($500,000) on mineral exploration on the property within 30 months of the signing anniversary. 4. Grant Larry Silo first right of refusal on all exploration work. 5. Pay the prospector owners, pro rata, CDN$750,000, within 30 months of the signing anniversary. The current owner prospectors will retain a three per cent (3%) Net Smelter Royalty on the property. On June 2, 2017, the payment of CDN$10,000 was changed to a payment of CDN$5,000 on June 5, 2017, plus CDN$5,000 paid on July 7, 2017. Total consideration of shares and these payments translated into USD amounted to $941,460. The Company recognized an impairment charge of $941,460 on the carrying value based on the substantial doubt of the Companys ability to raise adequate financing to further develop and explore this property. f) C1 Mortimer Property (continued) On October 8, 2019 the Joint Venture agreement expired and was replaced with a new Joint Venture Option Agreement signed November 19, 2019 with the following terms: 1. Pay the prospector owners $75,000 CDN annually for 10 years beginning January 1, 2021 and ending January 1, 2030. 2. The Company must spend three hundred thousand dollars ($300,000.00) CDN in mineral exploration on the property by January 1, 2025. 3. Upon signing, the Company will issue two million, four hundred thousand (2,400,000) JSHG common shares to the prospector owners as compensation for the changes to the original Joint Venture Option agreement. 4. The Company must keep each and all claims within the group that comprises the Property in good standing. If the Company forfeits one, any or all of the claims that comprise the Property, then the Company is obligated to inform the prospector owners of its impending forfeiture of any or all claims at least four months previous to the leased claims coming open for staking, 5. Prospector and driller Larry Salo will be granted first right of refusal on all exploration work, 6. The Company must maintain proper insurance on the Property at all times either by itself as a policy holder or through policies held by the Company's contractors such that the prospector owners have no legal liability at any time on the Property, As at December 31, 2019 and March 31, 2020, the Company had yet to issue 2,400,000 common shares of stock to the prospector owners. In 2019, the Company recognized an additional impairment charge of $359,760 on the carrying value of the C1 Mortimer Property based on the substantial doubt of the Companys ability to raise adequate financing g) Chewitt Property During the year ended December 31, 2019, the Company entered into a mineral property acquisition agreement, pursuant to which the Company acquired the mining lease to the Chewitt Property. Under the acquisition agreement, the Company issued equity consideration of 300,000 shares of common stock and cash of $360 ($475 CDN). In 2019, the Company recognized an impairment charge of $60,360 on the carrying value of the Chewitt Property based on the substantial doubt of the Companys ability to raise adequate financing h) King Solomon Mines Property During the year ended December 31, 2019, the Company entered into a mineral property acquisition agreement, pursuant to which the Company acquired the mining lease to the King Solomon Mines Property. Under the acquisition agreement, the Company issued equity consideration of 8,000,000 shares of common stock and agreed to a two per cent (2.0%) Net Smelter Royalty (NSR) to be paid. Vendor granted the Purchaser an Option to purchase 50% of the NSR (1%NSR) for $2 Million Canadian dollars ($2,000,000). In 2019, the Company recognized an impairment charge of $1,280,000 on the carrying value of the King Solomon Property based on the substantial doubt of the Companys ability to raise adequate financing. i) Borden Lake North Property On January 15, 2020, the Company entered into a mineral property acquisition agreement, pursuant to which the Company acquired 100% interest in eleven claims (approximately 495 acres), known as the Borden North Property in Cochrane and Darcy Townships located about 6.5 kilometers (app. 4 miles) north of the Newmont Borden Lake gold mine in Northern Ontario. Under the acquisition agreement, the Company issued equity consideration of 100,000 shares of common stock, valued at US$0.15 per share recorded in common shares issued and agreed to a two per cent (2.0%) Net Smelter Royalty (NSR) to be paid. Vendor granted the Purchaser an Option to purchase 75% of the NSR (1.5%NSR) for $1 Million Canadian dollars ($1,000,000). In the three month period ended March 31,2020, the Company recognized an impairment charge of $15,000 on the carrying value of the Borden Lake North Property based on the substantial doubt of the Companys ability to raise adequate financing. j) Halcrow Gold, McCool, Seymour Lake Property On April 14, 2020, the Company purchased a 100% interest in thirty five claims, known as the Halcrow Gold Property, McCool Property and Seymour Lake Extension Property Northern Ontario. The Company paid one million JSHG common shares at $0.145 pe rshare for the mineral property and a two per cent (2%) Net Smelter Royalty ('NSR') of which the Company has the option to repurchase 75% of the NSR for one million Canadian dollars ($1,000,000) for each of the three properties at any time. In the three month period ended June 30, 2020, the Company recognized an impairment charge of $145,000 on the carrying value of the Halcrow Gold Property, McCool Property and Seymour Lake Extension Property based on the substantial doubt of the Companys ability to raise adequate financing. |