6. MINERAL OPTIONS

3 Months Ended

Mar. 31, 2013

Extractive Industries [Abstract]

6. MINERAL OPTIONS

Wallach Option (Trail, British Columbia, Canada)

On June 7, 2012, the Company entered into a Mineral Property Option Agreement (the “Wallach Option”) with Mr. David A. Wallach of 0911325 BC, Ltd. (“Wallach”) with an effective date of April 28, 2012. Pursuant to the Wallach Option, the Company has been granted the exclusive right to acquire an undivided 60% interest in 10 mining claims consisting of approximately 2,958 hectares of property located near Trail, British Columbia. To exercise the Wallach Option, the Company must:

(i) make cash payments to Wallach totaling $350,000, of which $275,000 had been paid as of March 31, 2013;

(ii) fund improvement and mineral exploration projects on the property totaling $350,000 of which $55,000 had been paid as of March 31, 2013; and

(iii) if the mineral and exploration projects provide evidence that there is the equivalent of at least $1,000,000,000 of gross value on the property, issue 1,000,000 shares of common stock to Wallach.

The Company must satisfy the above-described conditions and exercise the Wallach Option no later than April 30, 2015. After exercise of the Wallach Option, Wallach will retain a 2% net smelter royalty for any and all minerals mined and delivered from the property. The Company and Wallach have also agreed to cooperate in acquiring mining claims in the area within an 8.5 kilometer radius of the property, with such acquisitions to be subject to the terms of the Wallach Agreement. As of May 7, 2013, the Company is in compliance with the Wallach Option agreement.

GeoXplor Option (Esmeralda County, Nevada, United States of America)

On June 13, 2012, we entered into the Mineral Property Option Agreement (the “GeoXplor Option”) with GeoXplor Corporation, a Nevada corporation (“GeoXplor”). Pursuant to the GeoXplor Option, GeoXplor has granted the Company the exclusive right to acquire a 100% interest in and to 48 unpatented mining claims comprising approximately 7,680 acres of property located in and around Esmeralda County, Nevada. To exercise the GeoXplor Option, the Company must make cash payments to GeoXplor totaling $575,000, of which $400,000 had been paid as of March 31, 2013 and fund improvement and mineral exploration projects on the property totaling $800,000, of which $55,480 had been spent as of March 31, 2013. The Company is required to pay a further $50,000 option payment and $41,520 towards exploration expenditures by June 15, 2013. The Company must satisfy all the above-described conditions and exercise the GeoXplor Option no later than July 1, 2015. After exercise of the GeoXplor Option, GeoXplor will be granted a 3% net smelter royalty for any and all minerals mined and delivered from the property. As of May 7, 2013, the Company is in compliance with the GeoXplor Option agreement