13.

Loan Payable

During the nine months ended September 30, 2016, the Company acquired one piece of mobile mining equipment from Komatsu through a financing agreements. As at September 30, 2016 and December 31, 2015, the finance agreement balances are as follows:

	September 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		(3,793,474)		(5,695,819)
Balance, end of period	$	14,931,786	$	18,372,823

The terms of the financing agreements are as follows:

	September 30, 2016			December 31, 2015
Total acquisition costs	$	24,614,468		$	24,262,031
Interest rates		0.00% - 4.40	%		0.00% - 4.40	%
Average remaining life (Years)		2.98			3.46
Monthly payments	$	4,669 - $33,906		$	4,669 - $33,906
Short-term portion	$	5,175,113		$	4,942,716
Long-term portion	$	9,756,674		$	13,430,107

For the three and nine months ended September 30, 2016, the Company made total down payments of $Nil and $57,313 (Three and nine months ended September 30, 2015 - $1,606,452 and $2,525,921). 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	$	1,294,271
2017		5,198,262
2018		5,323,624
2019		3,115,631
2020		-
Total	$	14,931,788