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3. Related Party Notes Payable

9 Months Ended

Sep. 30, 2017

3. Related Party Notes Payable

3. Related Party Notes Payable

At September 30, 2017 and December 31, 2016, the Company had the following notes and interest payable to related parties:

		September 30, 2017		December 31, 2016
Mine Systems Design (“MSD”), a company in which our Company’s Vice President owns 10.4%, 12% interest, monthly payments of $4,910 through October 2018	$	80,729	$	115,868
John Swallow, Company president, 5% interest, monthly payments of $5,834 with balloon payment of $416,295 in February 2019		465,446		520,010
John Swallow, Company president, 5% interest, principal and interest due February 2019		245,516		341,250
Margaret Bathgate, shareholder, 5% interest, principal and interest due January 2018		100,000		100,000
		891,691		1,077,128
Accrued interest payable		14,054		4,167
Total		905,745		1,081,295
Current portion		207,760		567,580
Long term portion	$	697,985	$	513,715

Related Party interest expense for the three and nine month periods ending September 30, 2017 and 2016 is as follows:

September 30, 2017				September 30, 2016
3 months		9 months		3 months		9 months
$	13,001	$	41,970	$	16,806	$	45,770

During the quarter ended March 31, 2017 in conjunction with a private placement (Note 9), the Company issued 1,000,000 units of its common stock and warrants with a combined value of $100,000 in exchange for $95,734 in principal and $4,266 in accrued interest on a note payable due to John Swallow, the Company’s president.

On August 8, 2017, notes with Mr. Swallow were amended to extend the balloon payments on both notes to February 2019.