Mineral Rights and Properties

3 Months Ended

Oct. 31, 2012

Mineral Rights and Properties [Abstract]

MINERAL RIGHTS AND PROPERTIES

3.     MINERAL RIGHTS AND PROPERTIES

On September 7, 2012 the Company entered into a mineral lease agreement with MinQuest, Inc. Pursuant to the terms of the agreement, the Company acquired 100% of the exploration and mining rights to 58 unpatented mining claims in Esmeralda County, Nevada approximately 26 miles south of Goldfield in the Tokop mining district for a period of 20 years known as the Empress Property.  

Empress Property

On September 7, 2012 the Company entered into a mineral lease agreement with MinQuest. Pursuant to the terms of the agreement, MinQuest has agreed to lease the Company 100% of the exploration and mining rights to the Empress Property. As consideration, the Company is required to provide annual payments of $20,000 and commit to the following work expenditures:

· $150,000 spent in the first year;

· $200,000 spent in the second year;

· $250,000 spent in the third year;

· $300,000 spent in the fourth year;

· $350,000 spent in the fifth year;

· $400,000 in the sixth year; and

· $650,000 in the seventh year.

MinQuest will also retain a 3% net smelter royalty in the event that the Company enters mineral production on the Empress Property. If the Company is unable to fulfill any of the commitments set out above, the mineral lease agreement will terminate and all property rights will revert back to MinQuest.