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9. Hillgrove Advances Payable
6 Months Ended
Jun. 30, 2015
Hillgrove Advances Payable  
Hillgrove Advances Payable

On November 7, 2014, the Company entered into a loan and processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) by which Hillgrove will advance the Company funds to be used to expand its smelter in Madero, Mexico, and in Thompson Falls, Montana.  The agreement states that if a stop notice is issued by Hillgrove within one year of the date of the agreement, the Company is only obligated to repay 50% of the funds advanced at that point.  If a stop notice is issued between one year and two years, there is a formula to prorate the repayment amount from 50% to 81.25%.  If a stop order is issued after two years, the repayment obligation is 81.25% of the funds advanced at that point. The Company has recorded the Hillgrove advances payable net of the 18.75% discount on the obligation due if Hillgrove issues a stop order after two years.  As of June 30, 2015, a discount of $116,277 has been recorded as deferred revenue and is being recognized ratably over a two year period; during the six month period ended June 30, 2015; $58,139 was recognized as income.  From the date of the contract through June 30, 2015, Hillgrove has advanced the Company a total of $1,271,821, of which $1,097,405 has been recorded as a long-term liability at June 30, 2015.