17. Mortgage Payable

The Company obtained a mortgage provided by private lenders to finance the acquisition of the shares of 1684567, as noted above under note 8. The mortgage has a principal amount of $1,385,820 ($1,800,000 CAD), is repayable interest only on a monthly basis at an annual rate of the higher of the Royal Bank of Canada's prime rate (currently 6.05%) and 10% per annum and is due May 24, 2020. The mortgage payable is secured by the shares held of 1684567, a first mortgage on the land described in note 10, long-lived assets, with a carrying value of $1,425,002, a general assignment of rents, and a fire insurance policy. In addition, on December 19, 2019, the Company received an advance of $615,920 ($800,000 CAD) from current and additional private lenders, on the same terms as the mortgage. Financing fees on the mortgage totaled $120,820 ($156,929 CAD). As at December 31, 2019, $8,138 ($10,570 CAD) (2018-$nil; $nil CAD) of accrued interest is included in accrued liabilities in the consolidated balance sheets.

		2019		2018

Mortgage payable, net of unamortized finance fees of $67,464 ($87,627 CAD)	$	1,934,276	$	—

For the year ended December 31, 2019, $83,662 ($111,002 CAD) (2018-$nil; $nil CAD), in interest expense was incurred.