Related party transactions

9 Months Ended

Oct. 31, 2012

Related party transactions [Text Block]

NOTE 7 – Related party transactions

We entered into the following transactions with related parties during the nine months ended October 31, 2012:

Paid or accrued $5,219 in rent. We rented an office from Jim Briscoe, our Chairman of the Board, CEO and CFO, on a month-to-month basis for $522 per month.

We have an option to explore 26 standard Federal lode mining claims at the East Silver Bell project and 33 standard Federal lode mining claims at the Walnut Creek project from JABA US Inc., an Arizona Corporation in which two of our directors are owners. We are required to pay annual rentals to maintain the claims in good standing. We paid rental fees in September 2012 to maintain the claims in good standing of approximately $8,300. The original option agreement was for the period from April 11, 2008 through January 1, 2011 and has been extended through June 1, 2013.

At October 31, 2012 we had a balance of accrued unpaid wages of $237,617 to Jim Briscoe, our Chairman of the Board, CEO and CFO, and to the President and Director of the Company.

We recognized compensation expense of $37,125 for stock options granted to officers and board members.

We entered into the following transactions with related parties during the nine months ended October 31, 2011:

Paid or accrued $4,697 in rent. We rented an office from Jim Briscoe, our Chairman of the Board and CFO, on a month-to-month basis for $522 per month.

We have an option to explore 26 standard Federal lode mining claims at the East Silver Bell project and 33 standard Federal lode mining claims at the Walnut Creek project from JABA US Inc., an Arizona Corporation in which two of our directors are owners. We are required to pay annual rentals to maintain the claims in good standing. We paid rental fees in September 2012 to maintain the claims in good standing of approximately $8,300. The original option agreement was for the period from April 11, 2008 through January 1, 2011 and has been extended through June 1, 2013.

At October 31, 2011 we had a balance of accrued unpaid wages of $120,700 to Jim Briscoe, our Chairman of the Board and CFO.