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 July 31, 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. In 2019, the amount of $70,588 due to the stockholder was waived and a gain on the settlement of debt of $70,588 was recorded as additional paid-in capital for the year ended July 31, 2019.

In 2018, the Company issued convertible notes in the principal amount of $500,000 to an unrelated party who, in August 2019, became the Company’s sole officer and director (see Note 6). As a result of the investor becoming the Company’s sole officer and director, these notes were reclassified as convertible notes – related party.

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 former chief executive officer of the Company.

The amounts paid to related parties during the year ended July 31, 2019 and 2018 were $0 and $7,730, respectively.

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

	July 31,		July 31,
	2019		2018

Due to former chief executive officer pursuant to executive employment agreement	$	164,706	$	164,706
Due to consultant pursuant to consulting agreement		—		70,588
	$	164,706	$	235,294