XML 47 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stockholders' Equity
3 Months Ended
Sep. 30, 2014
Notes to Financial Statements  
Note 9 - Stockholders' Equity

In August 2014, the Company issued 300,000 common shares for certain unpatented mining claims valued at $450,000 on the date of the acquisition. The mining claims were owned by a company whose sole owner is a related party.

 

In September 2014, the Company issued 79,530 shares of Series B Preferred Stock as settlement of an outstanding payable of $79,530 for legal fees owed to an unrelated party. The fair value of the shares was determined to be $300,000 resulting in an additional expense of $220,470 recognized during the three months ended September 30, 2014. All shares of Series B Preferred Stock are convertible into common stock at a ratio of 1 to 1.

 

In September 2014, the Company issued an aggregate of 1,400,000 common shares to unrelated parties in exchange for financial advisory, investment banking and consulting services valued at $2,800,000. The expense was recognized in full during the three months ended September 30, 2014.

 

In September 2014, the Company issued an aggregate of 169,505 common shares to two unrelated parties as settlement of outstanding payables of $109,159 owed for professional services. The fair value of the shares was determined to be $339,009 resulting in an additional expense of $229,850 recognized during the three months ended September 30, 2014.

 

In September 2014, the Company issued 20,000 shares of Series D convertible preferred stock (the “Series D Preferred Stock”), to officers and Directors for compensation valued at $40,000. The Series D Preferred Stock will be equivalent in all respects to the Company’s common stock, except that each share of Series D Preferred Stock will be entitled to cast 1,000 votes per share and contain liquidation preference. All shares of Series D Convertible Preferred Stock are convertible into common stock at a ratio of 1 to 1.

  

As a result of the effectuation of the Reverse Split on September 8, 2014, the Company issued 4,000,000 common shares under an exchange agreement for warrants originally issued in November 2013.

 

Outstanding shares of Series A convertible preferred stock are convertible into common shares at a ratio of 100 to 1.