Notes Receivable

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Notes Receivable

3. NOTES RECEIVABLE

In conjunction with the Merger, on June 22, 2015, the Company executed a secured loan agreement (the “Anatolia Loan”) whereby the Company agreed to provide up to AUD2,000,000 (approximately $1,600,000) to Anatolia. The Company transferred AUD1,000,000 ($779,700) on June 24, 2015 and AUD707,484 ($503,233) on September 30, 2015 to Anatolia in the first two tranches under the Anatolia Loan. Under the terms of the Anatolia Loan, the maturity date was December 31, 2015 and it carried a 12% annual interest rate (payable in shares of Anatolia or cash at the Company’s discretion). The Company could have converted the Anatolia Loan into shares of Anatolia at a price of AUD0.08 per share if there had been a change of control of Anatolia or if the stockholders of Anatolia voted against the Merger, or if the Merger did not otherwise close by December 30, 2015.

Should the Merger have been terminated, the Anatolia Loan would have become repayable within four months of that termination date, however it would have become repayable immediately in the event of a change of control of Anatolia. Anatolia was able to repay the Anatolia Loan at any time, but during the conversion period, the Company could have required funds be re-advanced and converted. The Anatolia Loan was secured against 35% of the shares held in Anatolia Uranium Pty Ltd, a subsidiary of Anatolia, and 100% owner of the Turkish operating subsidiary, Adur Madencilik STi Ltd.

Upon closing of the Merger on November 9, 2015 (as discussed in Note 13), the Anatolia Loan became an amount outstanding between the Company and its wholly-owned subsidiary.