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Subsequent Events
12 Months Ended
Dec. 31, 2018
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 11 - SUBSEQUENT EVENTS

 

Granite Peak Resources, LLC

 

During March 2019, the Company was informed that a change of control of the Company had occurred. Granite Peak Resources, LLC ("GPR") through its members (including Pure Path Capital Management LLC) acquired 69,464,434 shares of common stock (including 4,500,000 options to purchase common stock). The members transferred their shares of common stock of the Company in exchange for a pro-rata ownership interest in GPR. GPR also acquired the senior secured creditor position previously held by Pure Path Capital Group LLC, which includes a $2,500,000 first deed of trust on the Tonopah property and an outstanding promissory note with a principal balance of $2,229,187 and accrued interest of $955,701 as of December 31, 2018, which is in default. The members of Granite Peak Resources LLC are listed in the Schedule 13D filed by GPR on March 29, 2019. GPR has not communicated to the Company any plans to change any of the current officers or directors or governing documents and has expressed the purpose of its acquisition is to assist the Company execute on its business plan and resolve its current obligations and other claims. During December 2019, GPR purchased another 1,048,428 shares in private transactions. As of the date of this filing, GPR is the beneficial owner of 52.6% of the Company's common stock and the Company's largest secured creditor.

 

On December 17, 2019 the Company issued a promissory note to Granite Peak Resources ("GPR") for $192,080 representing the disbursements made on the Company's behalf during 2019. The note is payable one year from its issuance and accrues interest at 6% per annum. GPR cancelled this note in exchange for the exercise of the 4,500,000 options in acquired in March 2019. The options were issued in 2013 and originally exercisable at $0.44 per share, the Company agreed to modify the exercise price of the options if GPR exercised them in total. GPR exercised the options at a price of $0.0426 per share (the current fair market value per share based on the average of the median price and VWAP for the preceding 90 days) in exchange for the $192,080 note.

 

The Company entered into a Forbearance Agreement with GPR effective December 20, 2019. GPR has agreed to forbear any foreclosure proceedings for six months in exchange for the Company pledging the stock of its subsidiary and its subsidiaries as additional collateral under its outstanding obligations.