Note 9 - Related Party Transactions

12 Months Ended

Dec. 31, 2015

Notes

Note 9 - Related Party Transactions:

Note 9 – Related Party Transactions:

Conflicts of Interests

Athena Silver Corporation (“Athena”) is a company under common control. Mr. Power is also a director and CEO of Athena. Mr. Gibbs is a significant investor in both Magellan and Athena. Magellan and Athena are both exploration stage companies involved in the business of acquisition and exploration of mineral resources.

Silver Saddle Resources, LLC is also a company under common control. Mr. Power and Mr. Gibbs are significant investors and managing members of Silver Saddle. Magellan and Silver Saddle are both exploration stage companies involved in the business of acquisition and exploration of mineral resources.

The existence of common ownership and common management could result in significantly different operating results or financial position from those that could have resulted had Magellan, Athena and Silver Saddle been autonomous.

Management Fees

The Company maintains a month-to-month management agreement with Mr. Power requiring a monthly payment, in advance, of $2,500 as consideration for the day-to-day management of Magellan.

Management fees to Mr. Power totaling $30,000 for both the years ended December 31, 2015 and 2014 are included in general and administrative expenses in our statement of operations.  At December 31, 2015, $2,500 of the fees had not been paid and is included in Accrued liabilities on the accompanying balance sheet.

Accrued Interest - Related Parties

Accrued interest due to related parties is included in our consolidated balance sheets as follows:

	December 31, 2015	December 31, 2014
Accrued interest payable - Mr. Power	$1,775	$4,750
Accrued interest payable - Mr. Gibbs	102,211	53,627
	$103,986	$58,377

During the year ended December 31 2015, we paid a total of $7,250 to Mr. Power representing unpaid accrued interest.

Advances Payable – Related Parties

We borrowed and repaid non-interest bearing advances from/to related parties as follows:

	Year Ended December 31, 2015
	Advances	Repayments
Mr. Power	$6,545	$9,395

	Year Ended December 31, 2014
	Advances	Repayments
Mr. Power	$42,350	$39,500

At December 31, 2015 and 2014, $0 and $2,850, respectively, of advances from related parties were outstanding.

The Company also utilizes a credit card owned by Mr. Power to pay travel and other obligations when the availability of cash is limited or the timing of the payments is considered critical.  A total of $650 of Company charges were outstanding on this credit card at December 31, 2014, and is included in Accounts payable on the accompanying consolidated balance sheets. No amounts were outstanding at December 31, 2015.

Deferred Compensation

On June 1, 2015, the Company appointed W. Pierce Carson to the positions of President, Chief Executive Officer and a Director of G+W.  In connection with his appointment, the Company assigned to Mr. Carson restricted shares of G+W common stock representing 15% of the total issued and outstanding shares of G+W in return for one year of his services. The Company determined the value of the transaction at $50,000, which was recorded as deferred compensation to be amortized monthly over the initial one-year term of the employment agreement. As such, we have recognized $29,167 of compensation expense through December 31, 2015 in connection with this transaction.