RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

6 Months Ended

Jun. 30, 2022

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

5. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

During the period ended June 30, 2022, the Company terminated its mineral option agreement with LSG and entered in the Settlement Agreement, with the result that the Company returned its 20% undivided interest in and to the Goldfield Bonanza Project to LSG, the Company’s majority shareholder. In exchange, LSG agreed to forgive all the amounts owing by the Company to LSG under the option agreement, which included principal and interest amounts totaling $2,246,146.

During the period ended June 30, 2022, as a result of the rescission agreement with Sapir, the Company entered a debt reinstatement agreement with LSG whereby $2,246,146 of debt was reinstated by the Company to be subsequently settled via the issuance of common stock. The resulting loss from the reinstatement of debt was recognized within stockholders’ deficiency.

During the period ended June 30 2022, the Company had the following transactions with related parties:

i) During the period ended June 30, 2022, the Company received $24,025 in bridge loan vendor financing and $52,315 in bridge loan direct financing. The loans had no specific terms of repayment and were non-interest bearing;

ii) During the period ended June 30, 2022, the Company incurred $50,000 (2021: $50,000) in consulting fees payable to a company controlled by the Company’s President;

iii) On June 21  , 2022, the Company converted $2,322,487 in bridge loan vendor financing, bridge loan direct financing and reinstated debt owed to LSG into 62,769,918 shares of common stock with a fair value of $2,322,487;

iv) On June 8, 2022, the Company converted $42,942 in debt owed to the controlling shareholder of LSG into  1,160,583 shares of common stock with a fair value of $42,942.

v) On June 8, 2022, the Company converted $235,779 in past due compensation owed to the Company’s CEO and President into 6,372,405 shares of common stock with a fair value of $235,779.

At June 30, 2022, the Company had the following amounts due to related parties:

i) $720 (December 31, 2021: $Nil) in bridge loan vendor financing; with no specific terms of repayment, due to LSG, the Company’s majority shareholder with no accrued interest payable;

ii) $Nil (December 31, 2021: $Nil) in bridge loan direct financing; with no specific terms of repayment, due to LSG, the Company’s majority shareholder with no accrued interest payable;

iii) $Nil (December 31, 2021: $3,950): unsecured; non-interest bearing; with no specific terms of repayment, due to the controlling shareholder of LSG.

iv) $Nil (December 31, 2021: $33,939): 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 March 31, 2022 was $Nil (December 31, 2021: $3,584).

At June 30, 2022, total interest accrued on the above related party loans was $Nil (December 31, 2021: $3,584).

During the period ended June 30, 2022, the Company incurred $Nil (2021: $25,012) in mineral option fees payable to LSG.

During the period ended June 30, 2022, there was a $1,050 foreign exchange loss (2021: $42 loss) due to a related party loan amount in non-US currency. No stock-based compensation to related parties was incurred during the current period or in 2021.

At June 30, 2022, $Nil (December 31, 2021: $183,500) consulting fees were outstanding and included in Accounts Payable. A further $Nil included in Accounts Payable at that date was owing to the same company controlled by the President, for expenses outstanding (December 31, 2021: $1,779).