NOTE 6 - CAPITAL LEASE OBLIGATIONS

9 Months Ended

Mar. 31, 2013

Leases [Abstract]

CAPITAL LEASE OBLIGATIONS

NOTE 6 – CAPITAL LEASE OBLIGATIONS

In December 2012 the Company acquired approximately 8,000 acres of agricultural land in the Shai Hills area of Ghana, West Africa. The lease requires total payments over nine (9) years of $1,954,840. The company paid the first year payment of $129,032, which included a payment at the acquisition date of $119,000 and a credit for $10,032 of costs and expenses advanced to the lessee by the Company during lease negotiations, which were expensed in prior periods. The lease has been accounted for as a capital lease. On the lease acquisition date, the present value of the minimum lease payments, calculated at a discount rate of 8%, was $1,435,025, which was booked as Land under capital lease at March 31, 2013. The following is a schedule by year of future minimum lease payments under the capital lease, together with the present value of the minimum lease payments as of March 31, 2013:

	Amount
2013	$	200,000
2014		256,452
2015		248,387
2016		240,323
2017		232,258
Thereafter		648,388
Total minimum lease payments		1,825,808
Less: amount representing interest		509,783
Present value of lease payments		1,316,025
Less: current portion		94,718
Long-term portion	$	1,221,307