LOAN RECEIVABLE

12 Months Ended

Apr. 30, 2014

LOAN RECEIVABLE [Text Block]

3. LOAN RECEIVABLE

As of April 30, 2014 and April 30, 2013, loan receivable consisted of zero and $983,055, respectively.

On September 27, 2013, the Company entered into a settlement and security release agreement with Golden Anvil. Under the terms of the Release Agreement, the Company agreed to release Golden Anvil from loan agreements pursuant to which, Golden Anvil owed the Company $983,055 in secured indebtedness. In exchange for the release, Golden Anvil had 2,000,000 common shares of Gainey Capital Corp. (“Gainey”) issued to the Company as part of an asset purchase agreement between Golden Anvil and Gainey.

The now-settled loan receivable originated when the Company had advanced $970,000 to Golden Anvil to permit Golden Anvil to complete its refurbishment and relocation of its mineral processing plant in Nayarit, Mexico, and had paid $13,055 in expenses on behalf of Golden Anvil, which is included in the total loan amount of $983,055.