XML 17 R14.htm IDEA: XBRL DOCUMENT  v2.3.0.11
NOTE 8 ACCOUNTS PAYABLE
6 Months Ended
Jun. 30, 2011
Accounts Payable and Accrued Liabilities Disclosure [Text Block]
NOTE 8                                ACCOUNTS PAYABLE

Pursuant to the Ruby Mine Option-to-Purchase agreement executed on September 27, 2010, the Company is obligated to make option payments of $10,000 per month, beginning October 1, 2010 through the end of the first option period ending January 31, 2011, for a total of $40,000. This balance accrued for within accounts payable as of December 31, 2010 was $10,000, which was paid on January 3, 2011. Effective January 26, 2011, RDC and the Company agreed to amend the terms of the second option period, which the Company exercised on January 28, 2011. The amendment provides revised terms for the extension of the option from February 1, 2011 through June 30, 2011.  The revised terms reduces the payment due on February 1, 2011 from $50,000 to $10,000, and reduces the payment due on March 1, 2011 from $25,000 to $10,000.  As of the date of this report, the February 1, 2011 and the March 1, 2011 payments have been paid.  The payment due on April 1, 2011 has been increased from $25,000 to $30,000, which as of March 31, 2011, has been paid.  The payments due on May 1, 2011 (paid as of the date of this report) and June 1, 2011, respectively, have been increased from $25,000 to $50,000.  This balance accrued for within accounts payable as of March 31, 2011 was $100,000.  As of June 30, 2011, all option payments have been paid in full, and the balance accrued for within accounts payable as of June 30, 2011 was $0.

During Q1, 2011, the Company agreed to reimburse ACG Consulting, LLC (“ACG”) a total of $37,216 in expenses incurred to prepare and file EB-5 applications with USCIS.  As of March 31, 2011, $15,000 of this amount had been paid, and the remaining $22,216 balance was accrued for within accounts payable.  As of June 30, 2011, $0 remains outstanding and this account has been paid in full.