XML 28 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
NOTES PAYABLE
9 Months Ended
Sep. 30, 2013
NOTES PAYABLE  
NOTES PAYABLE

NOTE 2 NOTES PAYABLE

 

On September 6, 2013, the Company, and its majority shareholder, entered into an Asset Purchase Agreement with Shannon Anderson and Herbert “Chris” Christopherson, pursuant to which the Company purchased two parcels of real property located in Mineral County Montana from Messrs. Anderson and Christopherson. The acres consist of approximately 32 acres of usable land. The 32 acres was encumbered by a loan obligation. The balance of the loan obligation as of September 30, 2013 was $109,443. The note has a 7% per annum stated interest rate and is due and payable March 1, 2021. Payments in the amount of $1,581 are required to be made monthly.

 

The Company received advances of $10,443 during the period ended September 30, 2013 and $9,550 for the same period in 2012.  A total of $102,559 and $92,116 was owed at September 30, 2013 and December 31, 2012, respectively, by the Company for advances. These funds are due and payable upon demand and accrue interest at 6% per annum. Accrued interest at September 30, 2013 and December 31, 2012 was $26,443 and $21,974, respectively. In connection with the Asset Purchase, the Company entered into an obligation to repay the $129,002 on or before April 15, 2014. In addition, the Company entered into a release agreement wherein the advancing party released all claims against the Company in exchange for the promise to pay an additional $120,998 for a total accrued payable of $250,000 on or before April 15, 2014. Both agreements are verbal.