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Related Party Transactions
 12 Months Ended
Dec. 31, 2011
Related Party Transactions [Text Block]

10.          Related Party Transactions

Fred Brackebusch is President, Treasurer, and a Director of the Company. Grant Brackebusch, Fred Brackebusch's son, is the Vice-President and a Director of the Company. Grant Brackebusch's wife, Tina Brackebusch, is the Company's Corporate Secretary. Fred Brackebusch and Grant Brackebusch own 89.6% and 10.4%, respectively of Mine Systems Design, Inc. ("MSD"), a firm that has various related party transactions with the Company.

In addition to the related party transactions described in Notes 5 and 7, the Company had the following transactions with related parties:

  • During 2011 and 2010, the Company issued 25,000 shares of its restricted stock valued at $5,000 each year, to Tina Brackebusch for services as the Corporate Secretary.

  • During 2011 and 2010, the Company issued 125,000 shares, of its restricted common stock to members of the Board of Directors for their services as directors. These stock awards were recorded as directors' fees of $25,000 each year, based upon the estimated value of the shares issued and services rendered. Fred and Grant Brackebusch each received 25,000 shares in 2011 and 2010, all valued at $0.20 per share for $5,000 each per year as Directors of the Company.

  • During 2011 and 2010, the Company paid $6,000 to MSD for office rent.

The Company jointly owns GC with Marathon Gold USA (MUSA) and acts as the operator of the property. Accounts receivable are a part of normal operations which include operating costs, payroll, drilling costs, and drilling income. As of December 31, 2011, a related party account receivable existed with MUSA and GC for $97,794. In addition, income and expense items for the twelve month period ended December 31, 2011 related to MUSA and GC were as follows:

  • Drilling and exploration contract income $ 1,242,345  
  • Joint Venture Management fees income $      79,031  
  • Drilling and exploration contract expense $    642,478  

Engineering services income includes engineering services provided to UMS. UMS holds the noncontrolling interest in the Company's New Jersey Mill Joint Venture. Engineering services to UMS in the twelve month period ending December 31, 2011 were $131,800 and are included in consolidated revenues after the effects of consolidation of noncontrolling interest. As of December 31, 2011, a related party account receivable existed with the Mill Joint Venture and UMS for $33,924.