5.MINERAL PROPERTY COMMITMENTS - RELATED PARTY | 27 Months Ended |
Sep. 30, 2013 |
Mineral Industries Disclosures Related Pary [Abstract] | ' |
Mineral Industries Disclosures Related Pary | ' |
5 | MINERAL PROPERTY COMMITMENTS - RELATED PARTY | | 5 | MINERAL PROPERTY COMMITMENTS - RELATED PARTY | | | | | | | | | | | | |
Klondike North Property. On October 24, 2011, the Company entered into an Exploration and Mining Lease and Option to Purchase Agreement for the Klondike North Property, which consists of 12 unpatented lode-mining claims located on Bureau of Land Management lands in the Klondike Mining District, Esmerelda County, Nevada. The Company has the right to conduct all customary mineral exploration activities in return for the following commitments: | | Klondike North Property. On October 24, 2011, the Company entered into an Exploration and Mining Lease and Option to Purchase Agreement for the Klondike North Property, which consists of 12 unpatented lode-mining claims located on Bureau of Land Management lands in the Klondike Mining District, Esmerelda County, Nevada. The Company has the right to conduct all customary mineral exploration activities in return for the following commitments: | | | | | | | | | | | | |
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Advanced Royalty Payments | | | | | | | Advanced Royalty Payments | | | | | |
Date | | Payment Amount | | | Common Shares | | Date | | Payment Amount | | | Common Shares |
Upon execution of Agreement | | $ | - | | | | 500,000 | | Upon execution of Agreement | | $ | - | | | | 500,000 |
First Anniversary of the Agreement | | | 10,000 | | | | - | | First Anniversary of the Agreement | | | 10,000 | | | | - |
Second Anniversary of the Agreement | | | 20,000 | | | | - | | Second Anniversary of the Agreement | | | 20,000 | | | | - |
Third Anniversary of the Agreement | | | 30,000 | | | | - | | Third Anniversary of the Agreement | | | 30,000 | | | | - |
Fourth Anniversary of the Agreement | | | 40,000 | | | | - | | Fourth Anniversary of the Agreement | | | 40,000 | | | | - |
Fifth through the tenth Anniversary | | | 50,000 | | | | - | | Fifth through the tenth Anniversary | | | 50,000 | | | | - |
Eleventh Anniversary and thereafter | | | 100,000 | | | | - | | Eleventh Anniversary and thereafter | | | 100,000 | | | | - |
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The Company valued the 500,000 shares issued for the above acquisition of mineral rights at $0.02, based on the most recent sale of common shares, and recorded $10,000 as mineral property. | | The Company fair valued the 500,000 shares issued for the above acquisition of mineral rights at $0.02 and accounted for $10,000 as unproved property as of June 30, 2012. | | | | | | | | | | | | | | |
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Work Commitment | | Work Commitment | | | | | | | | | |
Lease Year | | Amount | | Lease Year | Amount | | | | | | | | | |
First Lease Year | | $ | 5,000 | | First Lease Year | $ | 5,000 | | | | | | | | | |
Second Lease Year | | | 25,000 | | Second Lease Year | | 25,000 | | | | | | | | | |
Third Lease Year | | | 50,000 | | Third Lease Year | | 50,000 | | | | | | | | | |
Fourth Lease Year | | | 75,000 | | Fourth Lease Year | | 75,000 | | | | | | | | | |
Fifth Lease Year and thereafter | | | 100,000 | | Fifth Lease Year and thereafter | | 100,000 | | | | | | | | | |
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Divide Property. On February 21, 2012, the Company entered into an Exploration and Mining Lease and Option to Purchase Agreement for the Divide Property, which consists of 10 unpatented lode-mining claims located on Bureau of Land Management lands in the Divide Mining District, Esmerelda County, Nevada. The Company has the right to conduct all customary mineral exploration activities in return for the following commitments: | | Divide Property. On February 21, 2012, the Company entered into an Exploration and Mining Lease and Option to Purchase Agreement for the Divide Property, which consists of 10 unpatented lode-mining claims located on Bureau of Land Management lands in the Divide Mining District, Esmerelda County, Nevada. The Company has the right to conduct all customary mineral exploration activities in return for the following commitments: | | | | | | | | | | | | | | |
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Advanced Royalty Payments | | Advanced Royalty Payments |
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Date | | Payment Amount | | | Common Shares | | Date | | Payment Amount | | | Common Shares |
Upon execution of Agreement | | $ | - | | | | 100,000 | | Upon execution of Agreement | | $ | - | | | | 100,000 |
First Anniversary of the Agreement | | | 10,000 | * | | | - | | First Anniversary of the Agreement | | | 10,000 | * | | | - |
Second Anniversary of the Agreement | | | 20,000 | | | | - | | Second Anniversary of the Agreement | | | 20,000 | | | | - |
Third Anniversary of the Agreement | | | 30,000 | | | | - | | Third Anniversary of the Agreement | | | 30,000 | | | | - |
Fourth Anniversary of the Agreement | | | 40,000 | | | | - | | Fourth Anniversary of the Agreement | | | 40,000 | | | | - |
Fifth Anniversary and thereafter | | | 50,000 | | | | - | | Fifth Anniversary and thereafter | | | 50,000 | | | | - |
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The Company valued the 100,000 shares issued for the above acquisition of mineral rights at $0.02, based on the most recent sale of common shares, and recorded $2,000 as mineral property. | | The Company fair valued the 100,000 shares issued for the above acquisition of mineral rights at $0.02 and accounted for $2,000 as unproved property as of June 30, 2012. | | | | | | | | | | | | | | |
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*The Company, with agreement from the sellers, satisfied its First Anniversary obligation with a $5,000 payment in cash and 50,000 shares of common stock issued with a fair value of $0.10 per share during the year ended June 30, 2013. | | *The Company, with agreement from the sellers, satisfied its First Anniversary obligation with a $5,000 payment in cash and 50,000 shares of common stock issued at a value of $0.10 per share during the year ended June 30, 2013. | | | | | | | | | | | | | | |
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Work Commitment | | Work Commitment | | | | | | | | |
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Lease Year | | Amount | | Lease Year | | Amount | | | | | | | | |
First Lease Year | | $ | 5,000 | | First Lease Year | | $ | 5,000 | | | | | | | | |
Second Lease Year | | | 25,000 | | Second Lease Year | | | 25,000 | | | | | | | | |
Third Lease Year | | | 50,000 | | Third Lease Year | | | 50,000 | | | | | | | | |
Fourth Lease Year | | | 75,000 | | Fourth Lease Year | | | 75,000 | | | | | | | | |
Fifth Lease Year and thereafter | | | 100,000 | | Fifth Lease Year and thereafter | | | 100,000 | | | | | | | | |
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Eagleville Property. On July 27, 2012, the Company entered into an Exploration and Mining Lease and Option to Purchase Agreement for the Eagleville Property, which consists of 58 unpatented lode-mining claims located on Bureau of Land Management lands in the Eagleville Mining District, Mineral County, Nevada. The Company has the right to conduct all customary mineral exploration activities in return for the following commitments: | | Eagleville Property. On July 27, 2012, the Company entered into an Exploration and Mining Lease and Option to Purchase Agreement for the Eagleville Property, which consists of 58 unpatented lode-mining claims located on Bureau of Land Management lands in the Eagleville Mining District, Mineral County, Nevada. The Company has the right to conduct all customary mineral exploration activities in return for the following commitments: | | | | | | | | | | | | | | |
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Advanced Royalty Payments | | Advanced Royalty Payments |
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Date | | Payment Amount | | | Common Shares | | Date | | Payment Amount | | | Common Shares |
Upon execution of Agreement | | $ | 6,000 | | | | 300,000 | | Upon execution of Agreement | | $ | 6,000 | | | | 300,000 |
On or prior to the 1st Anniversary of the Agreement | | | 15,000 | * | | | 150,000 | | On or prior to the 1st Anniversary of the Agreement | | | 15,000 | * | | | 150,000 |
On or prior to the 2nd Anniversary of the Agreement | | | 20,000 | | | | 150,000 | | On or prior to the 2nd Anniversary of the Agreement | | | 20,000 | | | | 150,000 |
On or prior to the 3rd Anniversary of the Agreement | | | 30,000 | | | | - | | On or prior to the 3rd Anniversary of the Agreement | | | 30,000 | | | | - |
On or prior to the 4th Anniversary of the Agreement | | | 40,000 | | | | - | | On or prior to the 4th Anniversary of the Agreement | | | 40,000 | | | | - |
On or prior to the 5th through the 10th Anniversary | | | 50,000 | | | | - | | On or prior to the 5th through the 10th Anniversary | | | 50,000 | | | | - |
On or prior to the 11th Anniversary and thereafter | | | 100,000 | | | | - | | On or prior to the 11th Anniversary and thereafter | | | 100,000 | | | | - |
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The Company valued the 300,000 shares issued for the above acquisition of mineral rights at $0.10, based on the most recent sale of common shares, and recorded $30,000 as mineral property. | | The Company fair valued the 300,000 shares issued for the above acquisition of mineral rights at $0.10 and accounted for $30,000 as unproved property as of June 30, 2013. | | | | | | | | | | | | | | |
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*The Company, with agreement from the sellers, satisfied its First Anniversary obligation with a $5,000 payment in cash and 100,000 shares of common stock issued with a fair value of $0.10 per share during the three months ended September 30, 2013. | | | | | | | | | | | | | | | | |
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Work Commitment | | Work Commitment | | | | | | | | |
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Lease Year | | Amount | | Lease Year | | Amount | | | | | | | | |
First Lease Year | | $ | 5,000 | | First Lease Year | | $ | 5,000 | | | | | | | | |
Second Lease Year | | | 10,000 | | Second Lease Year | | | 10,000 | | | | | | | | |
Third Lease Year | | | 25,000 | | Third Lease Year | | | 25,000 | | | | | | | | |
Fourth Lease Year | | | 50,000 | | Fourth Lease Year | | | 50,000 | | | | | | | | |
Fifth Lease Year and thereafter | | | 100,000 | | Fifth Lease Year and thereafter | | | 100,000 | | | | | | | | |
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For all three properties, the related party is a shareholder who exercises voting rights over more than 10 percent of the Company’s common stock. The Company has satisfied its work commitments for the first and second lease years on all three properties. | | For all three properties, the related party is an owner or co-owner which exercises voting rights over more than 10 percent of the Company’s common stock. The Company has satisfied its work commitments for the first and second lease years on all three properties. | | | | | | | | | | | | | | |
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