PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2022

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid Expenses And Other Current Assets

NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

On August 17, 2022, the Company executed a Management and Consultancy Services Agreement (the ‘Consultancy Agreement”) whereby a contractor was engaged to render professional services consisting of management and consultancy for the acquisition of surface rights and other technical services near San Guadalupe, Mexico.  The parties agreed to total consideration of $1,035,025 plus associated Value Added Tax (“VAT”). 

The Company paid $450,000 plus VAT upon execution of the Consultancy Agreement and will pay fifty (50) monthly installments of $11,700 plus VAT. The $450,000 initial installment will be amortized over the fifty (50) month term of the agreement and recognized as expense under “Other operating expenses and exploration” in the consolidated statements of operations. 

Prepaid expenses and other current assets at December 31, 2022 are as follows:

	December 31, 2022
Prepaid insurance	$	12,458
Prepaid consulting and management fees		405,000
Other current assets		17,141
		434,599
Less long-term portion		(297,000	)
Prepaid and other current assets	$	137,599

The long-term portion of prepaid and other current assets of $297,000 is included in “IVA receivable and other assets” on the consolidated balance sheets.