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Commitments and Contingencies
6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 13– COMMITMENTS AND CONTINGENCIES

 

In addition to commitments disclosed in Notes 4 and 7, the Company had the following commitments and contingencies.

 

Personal property tax and other accrued liabilities

 

Personal property tax for Tooele County, Utah, is billed and becomes due on November 30 of each year. At June 30, 2021 and December 31, 2020, the amount due to Tooele County for 2020 is Nil and $35,568, respectively.

 

Employment Agreements

 

The Company has an employment agreement with Mr. Havenstrite as President of the Company, which is ongoing. The agreement, as amended, requires Mr. Havenstrite to meet certain time requirements and limits the number of other board member obligations in which he can participate. The agreement allows for a base annual salary of $144,000 plus certain performance compensation upon fulfillment of established goals. The agreement allows the board of directors to terminate Mr. Havenstrite’ s employment at any time, providing for a severance payment upon termination without cause.

 

At June 30, 2021 and December 31, 2020 accrued compensation due to officers of the Company was $56,159 and $37,697, respectively. Of the amounts accrued at June 30, 2021 and December 31, 2020, accrued compensation of $37,698 and $26,621 is due to Rick Havenstrite and $18,461 and $11,076 is due to Marianne Havenstrite, Treasurer and Principal Financial Officer.

 

Director’s Fees

 

The Company compensates its directors for their service to the Company. At June 30, 2021 and December 31, 2020, accrued compensation due to directors was $56,000 and $34,000.

 

Finder’s Agreement

 

On May 11, 2018, the Company entered into an agreement with Mount Royal Consultants (Mount Royal) to assist in finding prospective investors. Mount Royal would receive a finder’s fee of 7% for a connection with a company that resulted in a qualified investment consisting of equity securities or a fee of 3% for a connection with a company that resulted in a purchase of debt securities.

 

Future amounts to be received from investors could also be subject to this agreement. During the three -month period ended June 30, 2021, the Company recognized no consulting expense relating to this agreement.

 

Mining Leases

 

Annual claims fees are currently $155 per claim plus administrative and school trust land fees. Total paid for claims fees paid during the three -and six- month periods ended June 30, 2021 and, 2020 were nil each period. Claims fees are due in August for the year beginning in September of that year.