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Settlement of Consulting Contract
12 Months Ended
Dec. 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, as a condition for entering into the Purchase Agreement (Note 3), 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 year ended December 31, 2019. The balance of $200,000 is due in July 2020, under the settlement agreement.