XML 32 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
2. Background
9 Months Ended
Feb. 28, 2014
Notes  
2. Background

2. BACKGROUND

 

On March 23, 2012, the Company entered into a Share Exchange Agreement with Placer Gold Prospecting, Inc. (“PGPI”), a Company that was formed on January 25, 2012. This share exchange agreement was treated as a reverse recapitalization, under which the legal acquiree (Placer) was treated as the accounting acquirer and the equity accounts of the Company were adjusted to reflect a reorganization. Inasmuch as Placer was treated as the accounting acquirer, whenever historical financial information is presented, it is Placer information.

 

On March 7, 2013, the Company formed a subsidiary in Baja, California. It remained inactive until June 1, 2013 at which time it became operational, extracting gold from mining claims that are not owned by the Company.  The Company is negotiating for the acquisition of these claims.  The Company has, thus far, not compensated the owner of the claims for this extraction activity.