12.

Loan Payable

During the six months ended June 30, 2016, the Company acquired mobile mining equipment from Komatsu through financing agreements. As at June 30, 2016 and December 31, 2015, the finance agreement balances are as follows:

	June 30, 2016		December 31, 2015
Balance, beginning of period	$	18,372,823	$	913,132

Additions		352,438		23,155,510
Down payments, taxes and principal repayments		(2,534,815)		(5,695,819)

Balance, end of period	$	16,190,446	$	18,372,823

The terms of the financing agreements are as follows:

	June 30, 2016		December 31, 2015
Total acquisition costs	$	24,614,468	$	24,262,031
Interest rates		0.00% - 4.40%		0.00% - 4.40%
Monthly payments	$	467,248	$	461,248
Average remaining life (Years)		2.98		3.46
Short-term portion		4,811,477		4,942,716
Long-term portion	$	11,378,968	$	13,430,107

For the three and six months ended June 30, 2016, the Company made total down payments of $nil and $57,313 (Three and six months ended June 30, 2015 - $344,870 and $919,470). The down payments consist of the sales tax on the assets and a 10% payment of the pre-tax purchase price. All of the loan agreements are for a term of four years, except one which is for three years, and are secured by the underlying asset except for the mining drill loan for which GQM Ltd. has provided a corporate guarantee.

The following table outlines the principal payments to be made for each of the remaining years:

Year	Principal Payments
2016	$	2,528,844
2017	$	5,198,262
2018	$	5,323,624
2019	$	3,133,086
2020	$	6,630
Total	$	16,190,446