XML 20 R11.htm IDEA: XBRL DOCUMENT

RELATED PARTY TRANSACTIONS

9 Months Ended

Apr. 30, 2019

NOTE 5 - RELATED PARTY TRANSACTIONS

On March 19, 2018, the Company entered into a one-year employment agreement with the former chief executive officer, who was also the sole director, pursuant to which the Company issued to him 17,500,000 shares of common stock, valued at $980,000, and agreed to pay him $164,706 to cover the federal income tax on the value of the stock and the tax payment. The shares are fully vested. As of April 30, 2019 and July 31, 2018, $164,706 was reflected as an amount due to related parties.

On March 19, 2018, the Company entered into a one-year consulting agreement with a consultant, who was, at the time, a 1.6% stockholder, pursuant to which the Company issued 7,500,000 shares of common stock, valued at $420,000, and agreed to pay $70,588 to the consultant to cover the federal income tax on the value of the stock and the tax payment. The shares were fully vested on issuance. As of April 30, 2019 and July 31, 2018, $70,588 was reflected as an amount due to related parties.

Prior to the change in management on March 16, 2018, the Company shared office space with other companies that were related parties. Two of these companies were majority stockholders of the Company, one of which shared the services of the chief financial officer and the other is a publicly-traded company which shared the services of the chief executive officer and the chief financial officer. Geological consulting fees were also paid to the company of the former chief executive officer.

The amounts paid to related parties during the nine months ended April 30, 2019 and 2018 were $0 and $7,730, respectively. The amounts paid to related parties during the three months ended April 30, 2019 and 2018 were $0 and $975, respectively.

The following table sets forth the amounts due to related parties at April 30, 2019 and July 31, 2018:

	April 30,		July 31,
	2019		2018
	(Unaudited)
Due to former chief executive officer pursuant to executive employment agreement	$	164,706	$	164,706
Due to consultant pursuant to consulting agreement		70,588		70,588
	$	235,294	$	235,294