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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Commitments and Contingencies

 

12. Commitments and Contingencies 

In 2005, AM signed an option agreement that gives AM the exclusive right to explore and develop the San Miguel I and San Miguel II concessions for an annual payment of $50,000, and an option to purchase payment of $100,000 annually. Total payments will not exceed $1,430,344, reduced by taxes paid. During the years ended December 31, 2011, 2010 and 2009, $186,956, $186,956 and $86,956 was paid or accrued and capitalized as mineral rights in accordance with the Company’s accounting policies. 

From time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”). Using appropriate regulatory channels, management may contest these proposed assessments, and has accrued $27,503 and $40,604 in other accrued liabilities as of December 31, 2011, and 2010, respectively, related to these settled claims.