XML 21 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions
 6 Months Ended
Jun. 30, 2012
Related Party Transactions [Text Block]

2. Related Party Transactions

The Company jointly owns with Marathon Gold USA (MUSA) and acts as the operator of the Golden Chest LLC (GC LLC). Accounts receivable are a part of normal operations which include operating costs, payroll, and drilling. As of June 30, 2012, a related party account receivable existed with MUSA and GC LLC for $16,758 for services rendered. In addition, income, expense, and equity in loss items for the three and six month periods ended June 30, 2012 related to MUSA and GC LLC were as follows:

          Three month     Six Month  
  • Drilling and exploration contract income   $ 356,040   $ 769,084  
  • Joint Venture Management fees income     17,784     41,025  
  • Drilling and exploration contract expense     117,874     347,760  
  • Equity in loss of Golden Chest LLC     310,853     714,792  

Engineering services income includes engineering services provided to United Silver Corp. (USC). USC holds the noncontrolling interest in the Company's New Jersey Mill Joint Venture. Engineering services to USC in the three and six month periods ended June 30, 2012 were $28,800 and $68,700 respectively. As of June 30, 2012, a related party account receivable existed with the New Jersey Mill Joint Venture (Mill JV) and USC for $113,388. As of June 30, 2012, $78,259 was recorded as an account payable to Mine Fabrication and Machine, which is a wholly owned subsidiary of USC.

$1,500 is payable quarterly by the Company to Mine Systems Design (MSD), a company controlled by our CEO, for office rent. The second quarter's office rent to MSD was recorded as a related party account payable on June 30, 2012. Additionally, at June 30, 2012 a $37,638 line of credit existed between the Company and MSD at 0% interest.