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COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)
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0 Months Ended | 1 Months Ended | 0 Months Ended | |||
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Jun. 11, 2012
Mohave County, Arizona
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Jun. 11, 2012
Uinta County Uranium Prospect
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Dec. 31, 2011
Affiliated Company
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Jan. 30, 2012
Robert A Larson
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Jun. 28, 2007
Slope County, ND 1 and 2
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Nov. 23, 2007
Slope County, ND 3
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| Production Royalty Description | The Company will pay a 3% net smelter return royalty on all uranium sales. The Company shall have the right to reduce the royalty from 3% to 0% by paying the aggregate sum of $1,500,000 ($500,000 for each 1%). |
Pursuant to the terms of the agreement, Absaroka Stone LLC agreed not to stake for its own account any additional mining claims within a 15 mile radius of the property. Any additional mining claims to be located within a 15 mile radius of the property (the “Claim Body”) were to be located, staked and filed by the Company, at its expense and held in its name. Such agreement requires a minimum of $200,000 relating to location, maintenance, exploration, development or equipping any one or more of the mining claims that comprise the Claim Body for commercial production within 24 months from the date of the agreement in May 2011. If the Company fails to incur a minimum of $200,000 in expenses related to the foregoing within 24 months, the Company shall pay an aggregate sum of $50,000 to Absaroka Stone LLC. Pursuant to the terms of the agreement, the Company would pay a 1% gross royalty to Absaroka Stone LLC on any revenues derived from the sale of all uranium-vanadium, gold, silver, copper and rare earth ores or concentrates produced from the Claim Body, up to an aggregate of $1,000,000. The Company has the option to eliminate the royalty obligations by paying Absaroka Stone LLC an aggregate payment of $1,000,000. |
The Company shall pay a production royalty of 6.25% of the fair market value of all crude ores containing uranium, canadium and associated and related minerals mined and sold from the leased deposits. When production royalty payments from the sales of ores from the leased premises equal the cumulative amount due to Lessor as advanced royalty payment, the Company shall pay Lessor 12.5% of the fair market value as defined in the Agreement. | Pursuant to the terms of the agreement and the Quitclaim Deed, the Company shall pay to Mr. Larson a Production Royalty, on a quarterly basis, equal to 5% of the fair market value (calculated pursuant to the terms of the Quitclaim Deed) of all crude ores containing uranium, vanadium and associated and related minerals mined and shipped or sold from the Claims or fed to "Initial Process" | ||
| Consideration paid for the lease assignment | $ 150,000 | |||||
| Lease Description |
Such property is located in San Miguel County, Colorado consisting of 320 acres more or less. The term of the assigned lease shall be for a period of 10 years and the Company shall have the right to renew and extend for an additional 10 year period. Under the lease, the Company shall pay annual rent payments of $10 for each acres of land contained within the property. Once development, mining and or production has commenced and defined areas for mining has been designated, the annual rent payment for that portion shall be $25 for each acre designated with the remaining acreage shall continue to be paid at $10 for each acre. The Company shall also pay surface damage as defined in the Lease.
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| Number of Acres leased | 472.8 | 554.24 | ||||
| Annual lease payment (per acre) | 10 | 10 | ||||
| Prepaid lease payment | $ 36,717 | $ 53,775 | ||||
| Production royalty (per pound of uranium) | 0.75 | 0.75 | ||||
| Production royalty (percentage of net proceeds) | 3.00% | 1.00% | 5.00% | |||