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10. Subsequent Events
3 Months Ended
Aug. 31, 2015
Notes  
10. Subsequent Events

10.  SUBSEQUENT EVENTS

 

In October 15, 2015, the Company entered into a Purchase Agreement with its wholly owned subsidiary Mega Mines, Inc.  ("Mega Mines") pursuant to which the Company sold to Mega Mines its 85% interest in AIVN de Mexico S.A. de C.V. ("AIVN"), which owns the mining concessions known as "La Sorpresa".  Closing under the Purchase Agreement is subject to payment, on or before December 15, 2015, by Mega Mines to the Company of $500,000 and delivery to the Company of 10,000,000 shares of Mega Mines common stock.

 

In connection with the Purchase Agreement, the four existing notes evidencing $950,000 of indebtedness of AIVN to the Company were replaced on October 15, 2015 by a Promissory Note Based on Income (the "New Note") dated October 8, 2015 by AIVN and Mega Mines, as co-borrowers, in favor of the Company.  The New Note is to be repaid by 20% of AIVN's net income from sale of all precious metals after mining production begins.  The New Note is secured by all equipment and all mining concessions as of October 15, 2015.  Refer to Company's 8-K filing.