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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Policies)
 12 Months Ended
Jun. 30, 2022
Policies  
Liquidity and Going Concern

Liquidity and Going Concern

The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due.

 

Below presents summary financial information for the two fiscal years presented in this Form 10-K filing.

 

 

 

 

 

June 30,

 

 

 

 

 

 

2022

 

 

 

2021

 

 

Cash on hand

 

 

$

19,939

 

 

$

27,458

 

 

 

Working capital (deficit)

 

 

$

(21,897,755

)

 

$

(20,372,840

)

 

 

Stockholder (deficit)

 

 

$

(17,533,112

)

 

$

(16,015,057

)

 

 

Current year net (loss)

 

 

$

(2,334,092

)

 

$

(2,080,512

)

 

 

 

On August 26, 2015, Santa Fe filed for Chapter 11 Bankruptcy protection, Case # 15-11761 (MFW) in Delaware. With the dismissal of our bankruptcy case in June 15, 2016, all assets of the Company were sold. These conditions raise substantial doubt regarding the Company’s ability to continue as a going concern.

To continue as a going concern, the Company is dependent on continued capital financing for project development, repayment of various debt facilities and payment of current operating expenses until the Company has constructed its mill operation and implemented ore production at our mine sites to process the mineralized ore to generate revenue. We have no commitment from any party to provide additional working capital and there is no assurance that any funding will be available as required, or if available, that its terms will be favorable or acceptable to the Company.

As of the fiscal years ending June 30, 2022 and 2021, the Company was in default debt facility payments, accounts payable and accrued liabilities related to pre-bankruptcy obligations as follows:

 

 

 

 

 

June 30,

 

 

 

 

 

 

2022

 

 

 

2021

 

 

 

Accounts payable and other accrued liabilities

 

 

$

3,663,249

 

 

$

3,644,799

 

 

 

Amounts due Sandstorm under the Gold Stream Agreement

 

 

$

10,379,629

 

 

$

10,003,500

 

 

 

Notes payable and accrued interest

 

 

$

5,736,243

 

 

$

5,294,491