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Subsequent Events
12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
NOTE 10 - Subsequent Events

In February and March 2012 the company raised an aggregate of $175,000 from one investor under a Regulation S Subscription Agreement.  Under this agreement, the Company is offering for sale up to $500,000 of shares and warrants at a purchase price of $1.00 per share.  For each dollar invested, the investor will receive one share of common stock and one warrant.  Each warrant entitles the investor to purchase one share of common stock for $1.50 per share.  The warrants expire on the third anniversary date its issuance.

 

On February 3, 2012, the Company entered into a Purchase and Sale Agreement with Clavo Rico, Ltd. a related party, a Turks and Caicos company (“Seller”) for the purchase of certain mining equipment from the Seller's wholly-owned subsidiary, Compania Minera Cerros del Sur, S.A., a Honduran company (“Cerros”). The Company is a party to a lease agreement with Cerros for certain exclusive mining and development rights and a ground lease in Honduras.

 

As consideration for the equipment, the Company exchanged 200,000 shares of common stock to the Seller with a fair value of $26,600.  The Company also agreed to be responsible for, among other things, the cost of freight, insurance, packing and transportation, and the risk of loss in shipping of the purchased equipment.

 

On February 28th, 2012, an investor exercised his right to purchase 30,000 shares for $.50 per share.  The Company received proceeds of $15,000.

 

On March 5, 2012, the Company was assigned the remaining lease rights under the December 2, 2010 and February 22, 2011 lease Agreements for the Bonanza property.

 

On March 27, 2012 the Company received $30,000 from First Line Capital, in exchange for a Note bearing interest at 8%.  The principal and interest is payable in full on March 28, 2013.