10. Contingencies and Commitments

12 Months Ended

Apr. 30, 2016

Notes

10. Contingencies and Commitments

10.  Contingencies and Commitments

(a)                Litigation

From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.  However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company.  The Company is currently not aware of any such legal proceedings or claims that the Company believes will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results.

(b)                Indemnities and Guarantees

During the normal course of business, the Company has made certain indemnities and guarantees under which it may be required to make payments in relation to certain transactions.  The Company indemnifies its directors, officers, employees and agents to the maximum extent permitted under the laws of the State of Nevada.  These indemnities include certain agreements with the Company's officers under which the Company may be required to indemnify such person for liabilities arising out of their employment relationship.  The duration of these indemnities and guarantees varies and, in certain cases, is indefinite.  The majority of these indemnities and guarantees do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated to make significant payments for these obligations and no liabilities have been recorded for these indemnities and guarantees in the accompanying consolidated balance sheets.

(c)                 Commitments

The Company has the following commitments as of April 30, 2016:

a)   Administration Agreement with EMAC Handels AG, renewed effective May 1, 2014 for a period of three years.  Monthly fee for administration services of $5,000, office rent of $250 and office supplies of $125.  Extraordinary expenses are invoiced by EMAC on a quarterly basis.  The fee may be paid in cash and or with common stock.

b)   Service Agreement signed November 24, 2015 with Frank Thorwald, Director, for director fees of $5,000 per month beginning December 2015 and the issuance of 200,000 restricted common shares of the Company.  The fees may be paid in cash and or with common stock.  Mr. Thorwald resigned as Director on May 20, 2016.

c)   Service Agreement signed April 25, 2016 with Merrill W. Moses, President, Director and CEO, for administration fees of $7,500 per month beginning May 2016 and the issuance of 350,000 restricted common shares of the Company.  The fees may be paid in cash and or with common stock.

d)   In order to maintain the Company’s claims and/or leases, the Company must make annual payments to the Bureau of Land Management (“BLM”) and the State of Nevada, due in September of each year.  Payment to the BLM is currently $195 per claim and the State of Nevada is currently $40 per claim, for a total annual commitment of $7,050.