7. MINERAL PROPERTY COMMITMENTS - RELATED PARTY | 9 Months Ended |
Mar. 31, 2015 |
Mineral Industries Disclosures Related Pary [Abstract] | |
Mineral Industries Disclosures Related Pary | 7. MINERAL PROPERTY COMMITMENTS - RELATED PARTY |
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For the following properties, the related party is a shareholder (not an officer or director) who exercises voting rights over 9.1% percent of the Company's common stock. He is also the Company's consulting geologist and a member of the Company's Technical Advisory Committee. The Eagleville Property has an additional related party who serves as the Company's CEO and Chairman of its Board of Directors and controls less than 1% of the Company's common stock. The Company has satisfied its work commitments on all properties to date. Work commitments include, but are not limited to, annual claim fees, exploration, mapping, sampling, drilling and administration costs. |
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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 38 unpatented lode-mining claims located on Bureauof 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 |
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Date | | Payment | | | Common | |
Amount | Shares |
Upon execution of Agreement – October 24, 2011 | | $ | - | | | | 500,000 | |
First Anniversary of the Agreement | | | 10,000 | | | | - | |
Second Anniversary of the Agreement | | | 20,000 | | * | | - | |
Third Anniversary of the Agreement | | | 30,000 | | | | - | |
Fourth Anniversary of the Agreement | | | 40,000 | | | | - | |
Fifth through the tenth Anniversary | | | 50,000 | | | | - | |
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 in the fiscal year ended June 30, 2012. |
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*The Company, with agreement from the sellers, satisfied its Second Anniversary obligation with 200,000 shares of common stock issued with a fair value of $0.10 per share in the fiscal year ended June 30, 2014. |
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Work Commitment |
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Lease Year | | Amount | | | | | |
First Lease Year | | $ | 5,000 | | | | | |
Second Lease Year | | | 25,000 | | | | | |
Third Lease Year | | | 50,000 | | | | | |
Fourth Lease Year | | | 75,000 | | | | | |
Fifth Lease Year and thereafter | | | 100,000 | | | | | |
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Divide Property. In February 2015, the Company terminated its Exploration and Mining Lease and Option to Purchase Agreement for the Divide Property and returned the underlying claims to the lessor and recorded an impairment charge for the full capitalized cost of $32,000 for the mineral interests. The Company dropped the Divide Property in order to focus its resources on its remaining properties. |
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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: |
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Date | | Payment | | | Common | |
Amount | Shares |
Upon execution of Agreement – July 27, 2012 | | $ | 6,000 | | | | 300,000 | |
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 3rd Anniversary of the Agreement | | | 30,000 | | | | - | |
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 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 in the fiscal year ended 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 in the fiscal year ended June 30, 2014. |
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**The Company, with agreement from the sellers, satisfied its Second Anniversary obligation with an additional 150,000 shares of common stock issued with a fair value of $0.12 per share in the fiscal year ended June 30, 2015 in lieu of the cash requirement. |
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Work Commitment |
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Lease Year | | Amount | | | | | |
First Lease Year | | $ | 5,000 | | | | | |
Second Lease Year | | | 10,000 | | | | | |
Third Lease Year | | | 25,000 | | | | | |
Fourth Lease Year | | | 50,000 | | | | | |
Fifth Lease Year and thereafter | | | 100,000 | | | | | |
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Green Monster-Danville Property. On October 31, 2014, the Company entered into an Exploration and Mining Lease and Option to Purchase Agreement for the Green Monster-Danville Property, which consists of 91 unpatented lode-mining claims located on Bureau of Land Management lands in the Danville Mining District, Nye 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 |
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Date | | Payment | | | Common | |
Amount | Shares |
Upon execution of Agreement – October 31, 2014 | | $ | 2,500 | | * | | - | |
First Anniversary of the Agreement | | | 5,000 | | | | - | |
Second Anniversary of the Agreement | | | 10,000 | | | | - | |
Third Anniversary of the Agreement | | | 20,000 | | | | - | |
Fourth Anniversary of the Agreement | | | 30,000 | | | | - | |
Fifth Anniversary of the Agreement | | | 40,000 | | | | - | |
Sixth Anniversary through the tenth anniversary | | | 50,000 | | | | - | |
Eleventh Anniversary through the fifteenth | | | 75,000 | | | | - | |
Sixteenth Anniversary and thereafter | | | 100,000 | | | | - | |
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*Plus reimbursement of the 2014 -15 BLM Annual Maintenance Fee of $12,245 and Nye County Notice to Intent to Hold Fee of $834, which has been paid. |
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Work Commitment |
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Lease Year | | Amount | | | | | |
First Lease Year | | $ | 5,000 | | | | | |
Second Lease Year | | | 10,000 | | | | | |
Third Lease Year and thereafter | | | 50,000 | | | | | |
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