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NOTE 16 SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2011
Subsequent Events [Text Block]
NOTE 16                               SUBSEQUENT EVENTS

Subsequent to June 30, 2011, the Company issued 836,050 shares of common stock previously registered with the SEC for issuance to Tangiers Investors LP ("Tangiers") pursuant to a Securities Purchase Agreement entered into with Tangiers on October 7, 2009, in consideration of $128,000.

Subsequent to June 30, 2011, the Company issued an aggregate of 557,528 shares of common stock to fully satisfy and retire a Convertible Note dated January 4, 2011 with Asher Enterprises, Inc. (“Asher”) pursuant to which the Company received $50,000 as a loan from Asher.  The total amount satisfied on conversion was $52,000, consisting of $50,000 in principal and $2,000 in accrued interest.

Subsequent to June 30, 2011, the Company accepted a notice of exercise on 500,000 warrants issued to Tangiers Investors, LP on December 30, 2010 that were attached to a convertible promissory note agreement dated December 30, 2010.  The exercise price was $0.05 per shares, and the Company received $25,000 upon the exercise and the issuance of 500,000 shares of common stock.

Subsequent to June 30, 2011, the Company completed the acquisition of the Ruby Mine. The purchase price was $2.5 million, of which $510,000 has been paid.  The remaining $1,990,000 will be paid as an eighteen (18) month mortgage (the “Note”) held by RDC, at an interest rate of three (3) percent per annum.  Monthly mortgage payments shall be $35,000 per month for the duration of 2011, and shall increase to $85,000 per month as of January 1, 2012.  Payments shall be accelerated upon receipt by the Company of funds from the federal EB-5 program, and there shall be no penalty for prepayment of the Note.  As part of the transaction, the Company also acquired all of the outstanding shares of Ruby Gold, Inc., which is now a wholly-owned subsidiary of the Company, as well as $171,000 in reclamation bonds that secure the Ruby Mine’s operating permits.