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Settlement of Consulting Contract
3 Months Ended
Mar. 31, 2019
Investments, All Other Investments [Abstract]  
SETTLEMENT OF CONSULTING CONTRACT

NOTE 14 – SETTLEMENT OF CONSULTING CONTRACT

 

On March 29, 2018, the Company entered into a five-year Agency Agreement (the "Agency Agreement") with H&H Metals Corp., a New York corporation ("H&H"). Under the terms of the Agency Agreement, H&H agreed to provide certain advisory services in regard to natural resources activities and to assist in securing purchasers for minerals produced from its mining properties.

 

On January 16, 2019, the Company negotiated a termination of the Agency Agreement (the "Termination Agreement") with H&H. Under the terms of the Termination Agreement, the Company paid H&H $600,000 in cash and agreed to pay an additional $200,000 within 18 months. The Company also issued 250,000 shares of its common stock with a fair value of $100,000 to H&H. In addition, Phillip H. Holme, a principal of H&H, became a director of the Company.

 

The Company recognized a loss on settlement of consulting contract of $900,000 during the quarter ended March 31, 2019. The balance of $200,000 is due under the settlement agreement at March 31, 2019.