6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

12 Months Ended

Dec. 31, 2019

Related Party Transactions [Abstract]

NOTE 6 - RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

At December 31, 2019, the Company had the following amounts due to related parties:

i) $247,060 (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 loans at December 31, 2019 was $32,414 (2018: $20,776). During 2019, LSG paid expenses directly on behalf of the Company totaling $35,657 (2018: $37,473).

ii) $635,000 (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 December 31, 2019 was $98,464 (2018: $69,034). During 2019, the Company borrowed $110,000 (2018: $105,000) from LSG.

iii) $3,850 (2018: $3,665): unsecured; non-interest bearing; with no specific terms of repayment, due to the controlling shareholder of LSG. The change in value during the year was due to fluctuation in the US to Canadian dollar exchange rate.

At December 31, 2019, total interest accrued on the above related party loans was $130,878 (2018: $89,810).

During the year ended December 31, 2019, there was a $185 foreign exchange loss (2018: $362) due to related party loan amounts in non-US currency. No stock-based compensation to related parties was incurred during the year ended December 31, 2019 (2018: $58,246).

During the year ended December 31, 2019, the Company incurred $100,000 (2018: $100,000) in mineral option fees payable to LSG, which have been accrued as of that date. The total amount of such fees due at December 31, 2019 was $523,913 (2018: $423,913), with total interest due in the amount of $57,414 (2018: $32,220).

At December 31, 2019, the total due to related parties of $1,598,115 (2018: $1,286,011) is comprised of the following:

§ Loans and accrued interest - $1,016,788 (2018: $829,878)

§ Mineral option fees payable and accrued interest - $581,327 (2018: $456,133)

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

In 2018, the full amount of a loan ($40,205) and accrued interest ($8,573) due to the President was exchanged for 1,478,140 shares of the Company’s common stock.