XML 22 R11.htm IDEA: XBRL DOCUMENT v3.20.1
Convertible Notes Payable
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
CONVERTIBLE NOTES PAYABLE

NOTE 4 – CONVERTIBLE NOTES PAYABLE

 

On March 16, 2020 the Company executed a Line of Credit ("LOC") with Granite Peak Resources, LLC ("GPR"), a related party, evidenced by a convertible promissory note. The LOC is for up to $2,500,000, matures over three years, bears interest at 10% per annum, is convertible into shares of the Company's common stock at a per share price of $0.04, and will be secured by the real and personal property GPR already has under lien. See Note 7. The LOC is for funding operating expenses critical to the Company's redirection and all requests for funds may be approved or disapproved in GPR's sole discretion.

 

At December 31, 2019, GPR had advanced $13,575 in contemplation of the LOC. During the three months ended March 31, 2020 GPR advanced an additional $50,780 which it used to pay directly certain operating expenses on the Company's behalf. Both advances, amounting to $64,355 in total, have been included in the convertible promissory issued by the Company in connection with the LOC and classified accordingly at March 31, 2020.

 

Including the foregoing advances under the LOC, there was $164,355 of principal and $57,856 of accrued interest outstanding on convertible debentures at March 31, 2020. With exception of the $64,355 of principal advanced under the LOI to date, the pre-existing convertible note is in default.