Note 6 - Promissory Note

3 Months Ended

Aug. 31, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 6 – PROMISSORY NOTE

The Company has a promissory note payable to Barrick of $147,880, comprising $51,576 in principal, and $96,304 in accrued interest at U.S. prime plus 2%, compounded semi-annually. The promissory note resulted from the agreement that led to the formation of Donlin Gold, where the Company agreed to reimburse Barrick for a portion of their expenditures incurred from April 1, 2006 to November 30, 2007. The promissory note and accrued interest are payable from 85% of the Company’s share of revenue from future mine production or from any net proceeds resulting from a reduction of the Company’s interest in Donlin Gold. The carrying value of the promissory note approximates fair value.