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Convertible Notes Payable
9 Months Ended
Sep. 30, 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, provides that all requests for funds may be approved or disapproved in GPR’s sole discretion, 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 or in pledge. See Note 7. The LOC is for funding operating expenses critical to the Company’s redirection including the resolution, on terms and conditions satisfactory to GPR, of the Company’s claims. However, GPR and the Company make no representation that the Company’s claims can be satisfactorily resolved voluntarily. Accordingly, GPR and the Company reserve all rights to employ every means legally available to seek the Company’s recapitalization.


At December 31, 2019, GPR had advanced $13,575 in contemplation of the LOC. During the nine months ended September 30, 2020 GPR advanced an additional $190,665 which it used to pay directly certain operating expenses on the Company’s behalf. Both advances, amounting to $204,230 in total, have been included in the convertible promissory note issued by the Company in connection with the LOC and classified accordingly at September 30, 2020.


Including the foregoing advances under the LOC, there was $304,240 of principal and $114,069  of accrued interest outstanding on convertible debentures at September 30, 2020. With exception of the $204,240 of principal advanced under the LOI to date, the pre-existing convertible note is in default.