XML 37 R11.htm IDEA: XBRL DOCUMENT

Notes Payable - Shareholder	9 Months Ended
Oct. 31, 2012
Mortgage Notes Payable Disclosure [Text Block]	NOTE 6 - Notes Payable – Shareholder In 2005, a shareholder advanced $30,000 to the Company for working capital purposes and to assist in identification of new mining properties. This loan is due on demand and bears interest at 10% per annum. During the years ended January 31, 2010 and 2009, the shareholder advanced an additional $50,000 and $80,000, respectively, under substantially identical terms. On August 31, 2011, the shareholder advanced a further $150,000 and added an additional $30,000 on October 27, 2011, for a loan total at the time of $340,000. The terms of the loans and interest rates are the same. The Company repaid $149,000 related to the loans during the nine months ended October 31, 2012. The balance outstanding on the Notes Payable – Shareholder totaled $191,000 as of October 31, 2012. Non-affiliated On August 31, 2012 the Company entered into a $300,000 bridge loan financing arrangement with an unaffiliated accredited investor, the proceeds of which were used to pay maintenance fees to the Bureau of Land Management and general operating expenses of the Company. The note payable bears interest at a rate of 15% per annum and was due and payable on or before October 30, 2012. In addition, the note is secured by all of the property of the Company. In connection with the financing agreement, the Company issued a five year warrant to the lender to purchase 6,814,000 shares of Company common stock, exercisable at $0.02 per share. As of October 31, 2012, the Company was unable to repay the note, thus, the Company is in default on the note. The default interest rate is 45%. We are currently engaged in discussions with the lender with regard to negotiating an extension on the note.

Notes Payable - Shareholder

9 Months Ended

Oct. 31, 2012

Mortgage Notes Payable Disclosure [Text Block]

NOTE 6 - Notes Payable – Shareholder

In 2005, a shareholder advanced $30,000 to the Company for working capital purposes and to assist in identification of new mining properties. This loan is due on demand and bears interest at 10% per annum. During the years ended January 31, 2010 and 2009, the shareholder advanced an additional $50,000 and $80,000, respectively, under substantially identical terms. On August 31, 2011, the shareholder advanced a further $150,000 and added an additional $30,000 on October 27, 2011, for a loan total at the time of $340,000. The terms of the loans and interest rates are the same. The Company repaid $149,000 related to the loans during the nine months ended October 31, 2012. The balance outstanding on the Notes Payable – Shareholder totaled $191,000 as of October 31, 2012.

Non-affiliated

On August 31, 2012 the Company entered into a $300,000 bridge loan financing arrangement with an unaffiliated accredited investor, the proceeds of which were used to pay maintenance fees to the Bureau of Land Management and general operating expenses of the Company. The note payable bears interest at a rate of 15% per annum and was due and payable on or before October 30, 2012. In addition, the note is secured by all of the property of the Company. In connection with the financing agreement, the Company issued a five year warrant to the lender to purchase 6,814,000 shares of Company common stock, exercisable at $0.02 per share.

As of October 31, 2012, the Company was unable to repay the note, thus, the Company is in default on the note. The default interest rate is 45%. We are currently engaged in discussions with the lender with regard to negotiating an extension on the note.