3. SALE OF ASSETS TO GUNNER GOLD, LLC	3 Months Ended
Sep. 30, 2013
Notes to Financial Statements
3. SALE OF ASSETS TO GUNNER GOLD, LLC	On September 20, 2013, the Company entered into an Amended and Restated Asset Purchase Agreement with Gunner Gold, LLC. Pursuant to the terms of the Amended and Restated Asset Purchase Agreement, the Company exchanged the following assets for 3,300,000 units of Gunner Gold, LLC common shares and $433,635 cash: 1) mining equipment and materials with net book value of $117,117; 2) right to conduct mining operations on the Company’s BLM properties for 7 years with the option to acquire the mineral rights for 700,000 additional units of Gunner Gold, LLC’s stock; 3) right to conduct mining operations on the Company’s Hull Lode Mining Claim with a monthly payment of $2,500; 4) the Company’s Judgetown Mining Claim related to a lease agreement with Judgetown, LLC dated September 30, 2012 (See Note 4). The Company will receive 5% of the net proceeds, after the payment of all maintenance costs, earned by Gunner Gold, LLC from the mining operation on BLM properties. Gunner Gold, LLC also assumed $260,568 of the lease obligation pursuant to the lease agreement. $275,000 of the $433,635 proceeds was paid directly to Tonaquint, Inc. to satisfy the Company’s entire obligation to Tonaquint Inc. under the Secured Convertible Promissory Note and Warrant Purchase Agreement entered on October 1, 2012. The 3,300,000 units of Gunner Gold, LLC was valued at $39,600 on the acquisition date and is accounted for using the cost method of accounting because the Company does not have the ability to exercise significant influence over the operating and financial policies of Gunner Gold, LLC. The Company recognized a gain on sale of assets of $306,118 as a result of the transaction. The gain represents the excess of the sum of the fair value of the Company’s investment in Gunner Gold LLC and $433,635 cash over the sum of the carrying value of the assets sold. At September 30, 2013, the Company had a receivable of $57,500 from Gunner Gold, LLC related to this transaction.

3. SALE OF ASSETS TO GUNNER GOLD, LLC

3 Months Ended

Sep. 30, 2013

On September 20, 2013, the Company entered into an Amended and Restated Asset Purchase Agreement with Gunner Gold, LLC. Pursuant to the terms of the Amended and Restated Asset Purchase Agreement, the Company exchanged the following assets for 3,300,000 units of Gunner Gold, LLC common shares and $433,635 cash: 1) mining equipment and materials with net book value of $117,117; 2) right to conduct mining operations on the Company’s BLM properties for 7 years with the option to acquire the mineral rights for 700,000 additional units of Gunner Gold, LLC’s stock; 3) right to conduct mining operations on the Company’s Hull Lode Mining Claim with a monthly payment of $2,500; 4) the Company’s Judgetown Mining Claim related to a lease agreement with Judgetown, LLC dated September 30, 2012 (See Note 4). The Company will receive 5% of the net proceeds, after the payment of all maintenance costs, earned by Gunner Gold, LLC from the mining operation on BLM properties. Gunner Gold, LLC also assumed $260,568 of the lease obligation pursuant to the lease agreement. $275,000 of the $433,635 proceeds was paid directly to Tonaquint, Inc. to satisfy the Company’s entire obligation to Tonaquint Inc. under the Secured Convertible Promissory Note and Warrant Purchase Agreement entered on October 1, 2012. The 3,300,000 units of Gunner Gold, LLC was valued at $39,600 on the acquisition date and is accounted for using the cost method of accounting because the Company does not have the ability to exercise significant influence over the operating and financial policies of Gunner Gold, LLC. The Company recognized a gain on sale of assets of $306,118 as a result of the transaction. The gain represents the excess of the sum of the fair value of the Company’s investment in Gunner Gold LLC and $433,635 cash over the sum of the carrying value of the assets sold.

At September 30, 2013, the Company had a receivable of $57,500 from Gunner Gold, LLC related to this transaction.