XML 40 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTE PAYABLE (Tables)
 9 Months Ended
Sep. 30, 2012
NOTE PAYABLE [Abstract]  
Notes Payable
Note payable at September 30, 2012 and December 31, 2011 consist of the following:

   
September 30, 2012
  
December 31, 2011
 
     
Note payable to an insurance company, payable $ 15,965 monthly, including interest (a)
 
$
-
  
$
110,648
 
Note payable for mining equipment, payable $5,556 monthly, including interest (b)
  
111,932
   
152,496
 
Note payable for mining equipment, payable $950 monthly, including interest (c)
  
33,490
   
-
 
Note payable for mining equipment, payable $6,060 monthly, including interest (d)
  
158,909
   
-
 
Note payable for mining equipment, payable $7,409 monthly, including interest (e)
  
21,055
   
-
 
Note payable for mining equipment, payable $5,000 monthly, including interest (e)
  
67,652
   
-
 
Note payable for mine site vehicle, payable $628 monthly, including interest (f)
  
37,701
   
-
 
   
430,739
   
263,144
 
Less:  Current Portion
  
(223,607
)
  
(165,375
)
Note payable, long-term portion
 
$
207,132
  
$
97,769
 


(a)  
The Company issued a note payable to an insurance company dated October 17, 2011 for directors' and officers' insurance, due in monthly installments, including interest at 3%.  The note matured in July 2012.

(b)  
On July 7, 2011 the Company purchased mining equipment for $198,838 by issuing a note with an implicit interest rate of 9.34%.  The note is collateralized by the mining equipment with payments of $5,556 for 36 months, which started on August 15, 2011.

(c)  
On April 17, 2012 the Company purchased mining equipment for $40,565 by issuing a note with an effective interest rate of 11.279%.  The note is collateralized by the mining equipment with payments of $950 for 48 months, which started on May 1, 2012.

(d)  
On July 23, 2012 the Company purchased mining equipment for $169,500 by issuing a note with an interest rate of 5.5%.  The note  is collateralized by the mining equipment with payments of $6,060 for 30 months, which started on August 25, 2012.

(e)  
On July 19, 2012 the Company purchased two pieces of mining equipment that had been leased for $$39,042 and $79,735, respectively by issuing notes with an implicit interest rate of 5.5% and is collateralized by the mining equipment with payments of $7,409 and $5,000 for four months and fifteen months, respectively.

(f)  
On September 20, 2012 the Company purchased a vehicle for the mine site for $37,701 by the issuing a note.  The note carries an interest rate of 0% and is collateralized by the vehicle with payments of $628 for 60 months, which started on October 20, 2012.
Future Minimum Note Payments
The following is a schedule of principal maturities for the next five years and the total amount thereafter on these notes as of September 30, 2012:
 

October 2012 – September 2013
 
$
223,607
 
October 2013 – September 2014
 
 
144,078
 
October 2014 – September 2015
 
 
41,563
 
October 2015 – September 2016
 
 
13,950
 
October 2016 – September 2017
 
 
7,541
 
Total Notes Payable
 
$
430,739