XML 33 R17.htm IDEA: XBRL DOCUMENT

NOTE 12: SUBSEQUENT EVENTS	3 Months Ended
Jun. 30, 2012
Subsequent Events [Text Block]	NOTE 12: SUBSEQUENT EVENTS On July 3, 2012, the Company executed an option to lease agreement with Black Mountain Resources Limited (“BMZ”) whereby the Company granted BMZ an option to lease the Company’s Lakeview District Mill for a 15-year period. Under the terms of the agreement, the Company is to receive a nonrefundable cash payment of $500,000 from BMZ, and in turn BMZ receives the right to conduct due diligence for a period of 90 days. If BMZ chooses to execute the lease within this period, it will issue to the Company a total of 11,000,000 shares of BMZ common stock, of which half will be voluntarily escrowed for one year. Upon execution of the lease, the Company will transfer ownership of its Weber Mine Property in the Lakeview District to BMZ. Upon its execution of the lease agreement, BMZ will be responsible for all maintenance on and capital improvements to the mill and will be responsible for paying a net $10 per ton milling charge to the Company for each ton of ore processed. For every year after the first ten years of the lease, BMZ agrees to make minimum toll payments to the Company of $250,000 per year. Under the terms of the lease agreement, the Company may use the mill to process its own ore by making commercial payments to BMZ. The lease may be extended beyond its primary term for two successive 15-year periods.

NOTE 12: SUBSEQUENT EVENTS

3 Months Ended

Jun. 30, 2012

NOTE 12: SUBSEQUENT EVENTS

On July 3, 2012, the Company executed an option to lease agreement with Black Mountain Resources Limited (“BMZ”) whereby the Company granted BMZ an option to lease the Company’s Lakeview District Mill for a 15-year period. Under the terms of the agreement, the Company is to receive a nonrefundable cash payment of $500,000 from BMZ, and in turn BMZ receives the right to conduct due diligence for a period of 90 days.

If BMZ chooses to execute the lease within this period, it will issue to the Company a total of 11,000,000 shares of BMZ common stock, of which half will be voluntarily escrowed for one year. Upon execution of the lease, the Company will transfer ownership of its Weber Mine Property in the Lakeview District to BMZ.

Upon its execution of the lease agreement, BMZ will be responsible for all maintenance on and capital improvements to the mill and will be responsible for paying a net $10 per ton milling charge to the Company for each ton of ore processed. For every year after the first ten years of the lease, BMZ agrees to make minimum toll payments to the Company of $250,000 per year.

Under the terms of the lease agreement, the Company may use the mill to process its own ore by making commercial payments to BMZ. The lease may be extended beyond its primary term for two successive 15-year periods.