SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

NOTE 12 – SUBSEQUENT EVENTS

On June 14, 2022, a former contractor of the Company filed a mining services lien on the Dragon Mine property for an amount of $177,777.78 for labor, services and equipment furnished under a Mining Services Agreement entered into between the Company and the contractor on August 1, 2021. On March 31, 2022, prior to the filing of the lien, the Company had entered into a Settlement Letter with the former contractor for an amount equal to $200,000. Under the terms of the Settlement Letter, the Company agreed to (i) make ten consecutive monthly cash payments of $10,000 to the former contractor beginning in April 2022 and (ii) issued 4,444,444 restricted shares of common stock to the former contractor. If the weighted average trading price of the shares of the Company’s common stock over the five trading days immediately preceding October 1, 2022 (“WATP”) was less than $0.0225 per share, the Company agreed, at its option, to (a) issue to the former contractor a number of shares of common stock equal to ((4,444,444 x (0.0225 – WATP)) / (0.9 x WATP)) or (b) make a cash payment to the former contractor equal to ((4,444,444 x (0.0225 – WATP)). As of June 14, 2022, the Company had made $61,379 in cash payments to the former contractor. On July 27, 2022, the Company entered into a Lien Settlement Agreement with the former contractor. Under the terms of the Lien Settlement Agreement, in exchange for a cash payment of $49,731.90 and the issuance of an additional 17,777,777 shares of common stock, the former contractor agreed to file a release of the mining services lien on the Dragon Mine property. Payment of the Lien Settlement Amount by the Company will also deem the Settlement Letter null and void. On August 15, 2022, the Company received a Notice of Release of Lean from Provo Mining indicating Provo Mining has received the payment stipulated on the Lien Settlement Agreement and the lien placed on the Company's listed assets have been released.

Between July 6, 2022 and July 27, 2022, the Company issued 43,409,524 shares of common stock upon the conversion of the 86,000 shares of Series B Preferred Stock sold by the Company in December 2021. 

On August 9, 2022 the Company closed on the sale of the rights to its iron oxide resource, 20 million shares of common stock, its Alpine Mill building, and related milling equipment. In exchange for $300,000, less a previously paid down payment of $120,000 and $20,000 of reimbursable legal expenses, the Company sold to BMI Minerals Company the rights to its iron oxide resource and 20 million restricted shares of common stock of the Company. In exchange for $1,700,000, the Company sold to Brady McCasland, Inc. its Alpine Mill building and related iron milling equipment. In conjunction with the sale of the Alpine Mill building the Company entered into (i) a ground lease with a term of 100 years, (ii) a Mining Operations Agreement and a (iii) Milling Operations Agreement.

On August 9, 2022, which coincided with the closing of the sale of (i) the rights to the Company’s iron oxide resource and (ii) its Alpine Mill building, the directors forfeited $1,630,811 of accrued but unpaid and two directors forfeited approximately $226,000 of accrued but unpaid compensation.

On August 6, 2022, the Company obtained waivers related to the negative covenants attached to its Series 2023 and Series A PIK Notes which restrict certain activities, in this case its Iron Sale, Mill Sale, Mining Operation, and Milling Operation agreements with BMI and BMC. MB obtained the waivers and noted the majority holders approved to waive the breach of the covenant in exchange for payments of: $244,500 to Samlyn Offshore Master Fund, Ltd., $130,500 to Samlyn Onshore Partners, LP, $250,000 to M. Kingdon Offshore Master Fund, LP, and $125,000 to Berylson Master Fund