6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

6 Months Ended

Jun. 30, 2020

Related Party Transactions [Abstract]

NOTE 6 - RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

At June 30, 2020, the Company had the following amounts due to related parties:

i) $303,625 (December 31, 2019: $247,060): 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 June 30, 2020 was $39,268 (December 31, 2019: $32,414). During the current six months, LSG paid expenses directly on behalf of the Company totaling $56,564 (2019: $24,050).

ii) $685,000 (December 31, 2019: $635,000): 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 June 30, 2020 was $115,012 (December 31, 2019: $98,464). During the current six months, the Company borrowed $50,000 (2019: $65,000) from LSG.

iii) $3,650 (December 31, 2019: $3,850): unsecured; non-interest bearing; with no specific terms of repayment, due to the controlling shareholder of LSG. The change in value during the six months was due to fluctuation in the US to Canadian dollar exchange rate.

iv) $40,000 (December 31, 2019: $0): unsecured; interest at 5% per annum; with no specific terms of repayment, due to the controlling shareholder of LSG. Accrued interest payable on the loan at June 30, 2020 was $635 (December 31, 2019: $0).

At June 30, 2020, total interest accrued on the above related party loans was $154,915 (December 31, 2019: 130,878).

During the current six-month period, there was a $200 foreign exchange gain (2019: $155 loss) due to a related party loan amount in non-US currency. No stock-based compensation to related parties was incurred during the current six-month period or to the end of Q2, 2019.

During the current six-month period, the Company incurred $49,988 (2019: $49,988) in mineral option fees payable to LSG, which have been accrued. The total amount of such fees due at June 30, 2020 was $573,901 (December 31, 2019: $523,913), with total interest due in the amount of $72,170 (December 31, 2019: $57,414).

At June 30, 2020, the total due to related parties of $1,833,261 (December 31, 2019: $1,598,114) was comprised of the following:

● Loans and accrued interest - $1,187,190 (December 31, 2019: $1,016,788)

● Mineral option fees payable and accrued interest - $646,071 (December 31, 2019: $581,326)

During each of the quarters in the current period, $25,000 (Q2 and Q1 2019: $Nil) in consulting fees for strategic and mine development was accrued as payable to the Company’s President. At June 30, 2020, the total of such fees payable was $42,500 (December 31, 2019: $0).