XML 31 R17.htm IDEA: XBRL DOCUMENT v3.3.1.900
3. Related Party Transactions
12 Months Ended
Dec. 31, 2015
Notes  
3. Related Party Transactions

12. Related Party Transactions

 

Grant Brackebusch owns 10.4% of Mine Systems Design, Inc. ("MSD"), a firm that has various related party transactions with the Company. Delbert Steiner was CEO and Director from August 29, 2013 to December 1, 2014, at that time he resigned as CEO and became Chairman of the Board and remained a director of the Company. John Swallow was President from August 29, 2013 to December 1, 2014, at that time he resigned as President and remained as a director of the company. The Company hired R. Patrick Highsmith as CEO, President, and a director of the Company on December 1, 2014. On May 4, 2015 R. Patrick Highsmith resigned as CEO, President, and a director of the Company. On May 4, 2015 Delbert Steiner was reappointed as CEO and remains as a director of the Company. On May 4, 2015, John Swallow was reappointed as President and remains as a director of the Company.

 

The Company had the following transactions with related parties:

 

In August 2012 the Company was extended a 48 month note payable by MSD, a Company in which our Company’s Vice President owns 10.4% at 12% interest for $223,806 to purchase property which had a total purchase price of $230,449. As of December 31, 2015 and 2014, $141,033 and $180,417, respectively, of this note remained. $44,378 in principal is payable within 1 year and the remaining $96,654 due after one year as follows: 2017-$50,007, 2018-$46,648. Monthly payments are $4,910.

 

In September 2014, the Company purchased a 2004 Pick-up from director Delbert Steiner for $7,500 in cash.

 

In the fourth quarter of 2015 the Company entered into a 120 month note payable to President John Swallow at 5% interest for $550,000 to purchase the outstanding interest in the GCJV (Note 15) and for continuing operations. As of December 31, 2015 $545,208 of this note remained with $43,736 in principal payable within 1 year and the remaining $501,472 due after one year as follows: 2017-$45,974, 2018-$48,326, 2019-$50,798, 2020-$53,397, and thereafter 302,977. Monthly payments are $5,834.