6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

9 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

NOTE 6 - RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

At September 30, 2019, the Company had the following amounts due to related parties:

i) $615,000 (December 31, 2018 - $525,000): unsecured; interest at 5% per annum from January 1, 2015; with no specific terms of repayment, due to LSG, the Company’s majority shareholder. Accrued interest payable on the loan at September 30, 2019 was $90,569 (December 31, 2018: $69,034). During the nine months ended September 30, 2019, the Company borrowed $90,000 (2018: $90,000) from LSG.

ii) $239,153 (December 31, 2018 - $211,403): unsecured; interest at 5% per annum; with no specific terms of repayment, due to LSG, the Company’s majority shareholder. Accrued interest payable on the loan at September 30, 2019 was $29,326 (December 31, 2018: $20,776). During the nine months ended September 30, 2019, LSG paid expenses directly on behalf of the Company totaling $27,750 (2018: $34,355).

iii) $3,775 (December 31, 2018 - $3,665): unsecured; non-interest bearing; with no specific terms of repayment, due to the controlling shareholder of LSG. The change in value was due solely to fluctuation in foreign exchange rates.

iv) $1,704 (December 31, 2018: $0): unsecured; interest at 5% per annum; with no specific terms of repayment, due to the President of the Company. Accrued interest payable on the loan at September 30, 2019 was $7 (December 31, 2018: $0).

Total interest accrued on the above related party loans at September 30, 2019 was $119,903 (December 31, 2018: $89,810).

During the period ended September 30, 2019, there was a $110 foreign exchange loss (2018: $931) resulting from related party loan amounts in non-US currency. Stock-based compensation to related parties was $0 during the period ended September 30, 2019 (2018: $58,246).

During the nine months ended September 30, 2019, the Company incurred $75,000 (2018: $75,000) in mineral option fees and $18,257 (2018: $14,440) in interest payable to LSG, which were accrued as of that date. The total amount of such fees due at September 30, 2019 was $498,913 (December 31, 2018: $423,913), with total interest due in the amount of $50,477 (December 31, 2018: $32,220).

At September 30, 2019, the total due to related parties of $1,528,924 (December 31, 2018: $1,286,011) was comprised of the following:

■ Loans and accrued interest - $979,534 (December 31, 2018: $829,878)

■ Mineral option fees payable and accrued interest - $549,390 (December 31, 2018: $456,133)

During the period ended September 30, 2019, $12,000 (2018: $0) in consulting fees for strategic development was paid to the Company’s President. $0 (December 31, 2018: $966) was owing to the President for expenses outstanding in accounts payable as at September 30, 2019.