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SUBSEQUENT EVENTS
3 Months Ended
Aug. 31, 2011
SUBSEQUENT EVENTS [Text Block]

NOTE 9 – SUBSEQUENT EVENTS

On September 9, 2011, we entered into an option agreement (the “TAC Agreement”) with TAC Gold Inc. in regards to the acquisition of a 15% interest in a mineral exploration property known as the “Iowa Canyon” property, located in Lander County, Nevada (see Note 4 above and page 8 of the 10Q quarterly report for further discussion of the terms of the agreement and the obligations thereunder).

On September 11, 2011 the Company issued 400,000 shares of our common stock in a private placement, raising gross proceeds of $280,000, or $0.70 per share. We issued the shares in an offshore transaction relying on Regulation S and/or Section 4(2) of the Securities Act of 1933.

On September 14, the Board of Directors received the resignation of Ma Cheng Ji as a director of the Company. Mr. Ma’s resignation was not the result of any disagreement with the Company regarding its operations, policies, practices or otherwise but rather as a result of the Corporation no longer being involved in operations in China and other personal and business reasons. As of the date of this periodic report, our Board of Directors is comprised of Messrs. Brent Welke and Dr. Gaspar R. Gonzalez.

On October 3, 2011, the Company issued 19,455 shares of our common stock to satisfy the annualized obligations of the Nevada option agreements on the Belleville and Goldfields West properties to TAC Gold to reimburse them for the equivalent dollar value ($9,921.88) of shares of TAC issued to Minquest Inc. under the underlying agreements to the option agreements between the Company and TAC at a deemed price of $0.51 per share which reflected the average closing price of the Company’s stock on the OTC-BB for the ten days prior to the issuance. We issued the shares in an offshore transaction relying on Regulation S and/or Section 4(2) of the Securities Act of 1933.

There are no other subsequent events upon which to report. Subsequent events have been evaluated through the date of this financial report.