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6. Commitments and Contingencies
6 Months Ended
Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

In 2005,  Antimonio de Mexico S.A. de C.V. (“AM”) signed an option agreement that gives AM the exclusive right to explore and develop the San Miguel I and San Miguel II concessions for annual payments.  Total payments will not exceed $1,430,344, reduced by taxes paid.  During the six months ended June 30, 2015 and the year ended December 31, 2014, $25,000 and $200,000, respectively, was paid and capitalized as mineral rights in accordance with the Company’s accounting policies.  At June 30, 2015, the following payments are scheduled: $25,000 on July 15, 2015, $25,000 on August 15, 2015 and $25,000 on September 15, 2015, and $192,000 on December 15, 2015.

 

In June of 2013, the Company entered into a lease to mine antimony ore from concessions located in the Wadley Mining district in Mexico.  The lease calls for a mandatory term of one year and requires payments of $34,800 per month.  The lease is renewable each year with a 15 day notice to the lessor, and agreement of terms.   The lease was renewed in June of 2014.

 

From time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”).  Using appropriate regulatory channels, management may contest these proposed assessments, and has accrued $716 and, $0, in other accrued liabilities as of June 30, 2015, and December 31, 2014, respectively, related to these settled claims.

 

During the first quarter of 2015, the Company discovered that our IMMEX certification had expired and that the Company would be required to renew it.  Without the IMMEX certification, the Company was required to pay the national sales tax of 16% on all items that the Company imports into Mexico, including  capital items and the concentrates from Hillgrove of Australia.  IMMEX requires that the Company export a minimum of 60% of everything that is imported into Mexico.  The Company has not met this requirement at this time.  At June 30, 2015, the Company had approximately $354,000, included in other current assets, on deposit with the Mexican tax authorities, and the Company believes that this will ultimately be refunded.  The Company’s accountants and attorneys in Mexico are working on the refund application.