16.

Loan Payable

During the nine months ended September 30, 2016, the Company sold 2 (December 31, 2016 – nil) pieces of equipment with a net book value of $1.0 million in consideration for settlement of 2 loans by $0.6 million plus $0.1 million in cash. The Company also recorded $0.3 million as a loss in disposition of fixed assets.

During the nine months ended September 30, 2017, the Company entered into 4 new loan agreements for a total of $7.6 million for the acquisition of 4 (December 31, 2016 – 2) pieces of mining equipment from Komatsu.

As at September 30, 2017 and December 31, 2016, the finance agreement balances are as follows:

	September 30, 2017		December 31, 2016
Balance, beginning of the period	$	15,150	$	18,373
Additions		7,646		2,047
Down payments and taxes		(1,338)		(264)
Settlements		(414)		-
Principal repayments		(4,648)		(5,006)
Balance, end of the period	$	16,396	$	15,150

Current portion	$	6,998	$	5,656
Non-current portion	$	9,398	$	9,494

For the nine months ended September 30, 2017, the Company made total down payments of $1.3 million (2016 - $0.3 million). 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 4 years, except 2 which are for 3 years, and are secured by the underlying asset except for 2 mining drill loans for which GQM Ltd. has provided a corporate guarantee. Interest rates range from 0.00% to 4.50% with monthly payments in the range of $0.005 to $0.03 million.

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

Years		Principal Payments
	2017	$	6,998
	2018		6,146
	2019		2,060
	2020		1,191
	Total	$	16,395