Property and Equipment

3 Months Ended

Mar. 31, 2013

Property And Equipment

NOTE 4 - Property and Equipment

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 $106,000 based on the value of equipment. 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. The equipment had not been placed in service as of December 31, 2012 and the Company recorded an impairment loss of $106,000.

Property and equipment consists of the following at March 31, 2013 and December 31, 2012:

	March 31, 2013			December 31, 2012
Mining equipments	$	106,000		$	106,000
Total		106,000			106,000
Less: impairment loss		(106,000	)		(106,000	)
Property and equipment, net	$	-		$	-