Note 10 - Notes Payable

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Text Block]

10.   NOTES PAYABLE

Notes payable consisted of the following at December 31, 2012:

In thousands of dollars

	2012
Note payable Mortgage	$	1,000
Note payable Bank of China		1,980
Note payable ICBC		3,700
Total	$	6,680

On August 8, 2012, we entered into a Note payable secured by, a Deed of Trust, corporate guaranty and hazardous materials indemnity agreement for the provision of a $1,000,000 loan secured by the Company’s Reno, Nevada Facility. Under the terms of the loan documents, interest accrues on the outstanding principal balance at the rate of 11% per annum. We were obligated to pay five months of prepaid interest to the lender upon closing and make interest-only payments on a monthly basis during the remaining term of the loan and to repay all principal and any outstanding interest on or before August 1, 2013. Although we may prepay the loan, we are obligated to pay a minimum of five months’ interest.  Proceeds of the Loan were used for general working capital requirements.

In October 2012, the Company and Northern Altair entered into a series of transactions, wherein, Northern Altair set aside, as restricted cash, $2,057,900 with the Bank of China; interest rate is .0053% daily and the maturity date is October 18, 2013. In return, the Bank of China loaned the Company $1,980,000 for use as operating capital.

In November 2012, the Company and Northern Altair entered into a series of transactions, wherein, Northern Altair set aside, as restricted cash, $3,894,180 with the Industrial and Commercial Bank of China (“ICBC”); interest rate is .0056% daily and the maturity date is November 15, 2013. In return, the ICBC loaned the Company $3,700,000 for use as operating capital.