Note 11 - Commitments and Contingencies

9 Months Ended

Jun. 30, 2018

Notes

Note 11 - Commitments and Contingencies:

NOTE 11 – COMMITMENTS AND CONTINGENCIES:

Mineral Exploration

In addition to the commitment we have relating to our purchase of joint venture interests from AGEI (see Note 5) we have the following commitments and contingencies:

A portion of our mining claims on our properties are subject to lease and option agreements with various terms, obligations, and royalties payable in certain circumstances.

Pursuant to the Amended Option Agreement at Talapoosa (see Note 5), we had an obligation to make a payment of $2 million by March 31, 2018, which payment was not made and, therefore, the Amended Option Agreement was terminated per its terms on March 31, 2018.  We have no future obligations related to the Amended Option Agreement at Talapoosa. 

We pay federal and county claim maintenance fees on unpatented claims that are included in our mineral exploration properties.  Should we continue to explore all of our mineral properties we expect annual fees to total approximately $158,000 per year in the future.

While we recognize that we will not be able to meet these payments with our current cash balances, we do expect to make these payments with proceeds from expected capital raises.  We expect to obtain additional capital through refunds of excess restricted cash held for exploration bonds and financing transactions such as equity investments, asset sales, joint ventures, debt facilities, or other types of strategic arrangements.

Real Estate Lease Commitments

As of June 30, 2018, the Company has no real estate lease commitments. The Company’s office in Coeur d’Alene, Idaho and its facilities in Eureka, Nevada are rented on a month-to-month basis.

Total office lease and rental expense from continuing operations is included in the following line items in the consolidated statements of operations and comprehensive income (loss):

		Three months ended June 30,			Nine months ended June 30,
		2018		2017		2018		2017
Mineral exploration expenses	$	6,900	$	12,900	$	32,700	$	38,700
Other general and administrative expenses		10,500		10,500		31,500		31,500
Total	$	17,400	$	23,400	$	64,200	$	70,200

Employment Agreements

The Company has employment agreements with two executive employees that require certain termination benefits and payments in defined circumstances.