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Related Party Transactions
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12 Months Ended |
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Dec. 31, 2011
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| Notes to Financial Statements | |
| Related Party Transactions |
NOTE 8 – RELATED PARTY TRANSACTIONS
On April 26, 2011, the Company purchased a quitclaim deed for the 76 Property from Can-Am Gold Corp. that conveyed to it all of Can-Am Gold Corp.’s rights, title and interest in 36 unpatented lode mining claims located in Yavapai County, Arizona. The Company paid ten dollars ($10.00) as consideration for the quitclaim deed. Mr. Bleak, the Company’s current Chief Executive Officer, Chairman and Chief Financial Officer, is the president and sole director of Can-Am Gold Corp.
Between
May 2011 and September 2011 the Company rented warehouse space in Apache Junction, Arizona from Pinal Realty Investments,
Inc. pursuant to a month to month lease agreement. The Company paid Pinal Realty Investments, Inc., an aggregate of $1,000 a
month in rent and management fees. Mr. Bleak and his son each own 16.45% of Pinal Realty Investments, Inc. The Company
terminated such lease agreement on September 1, 2011. The Company moved to its current facilities in Apache Junction, Arizona
on October 3, 2011. Rental fee is included in the associated expenses paid pursuant to an amended Services and Employee
Leasing Agreement as discussed below. Mr. Eckersley was the former President of MJI.
On
June 1, 2011, the Company entered into a Services and Employee Leasing Agreement with MJI pursuant to which the Company
agreed to pay MJI $15,000 a month and MJI agreed to make available to the Company six of its employees, including Mr. Bleak,
for the purpose of performing management, operations, legal, accounting, and resource location services. The
Company also pays the six employees an aggregate of $11,000 a month. This Agreement may be terminated at any time
by either party. On August 1, 2011, the Company amended this Agreement whereby the Company agreed to pay MJI $25,000 per
month. On October 1, 2011, the Company entered into a third amendment of Agreement. Such amendment specifies the services and
associated expenses in consideration for $25,000 a month as defined in the amended Agreement. Mr. Eckersley, one of the
Company’s directors, was the former President of MJI.
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