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8. Mineral Properties

3 Months Ended

Mar. 31, 2018

Mineral properties at March 31, 2018 and December 31, 2017 consisted of the following:

		March 31, 2018		December 31, 2017
New Jersey	$	248,289	$	248,289
McKinley		250,000		250,000
Golden Chest		1,667,092		1,649,142
Four Square		826,587		-
Toboggan		5,000		5,000
Less accumulated amortization		(18,420)		(16,475)
Total	$	2,978,548	$	2,135,956

On March 2, 2018, the Company entered into an agreement with J-J Farms LLC and Achievement Holdings LLC (“Four Square”) to purchase a group of patented and unpatented mining claims. Per the agreement, future payments for the mineral property are as follows:

Shares of the Company’s common stock: 1,333,333 (paid upon closing), and 1,333,333 shares on September 30, 2019. These shares had a fair value of $466,666 based on the closing price of the Company’s stock on the date of the agreement.

Cash payments: $100,000, $100,000, and $200,000 on September 30, 2018, 2019, and 2020, respectively, for a total of $400,000. The payments are non-interest bearing. Using an implied interest rate of 6.0%, the fair value of these future payments is $359,921 on the date of the agreement.

Total purchase price is $826,587. A mineral purchase property payable was recorded representing the future payments of shares of common stock and cash which total $613,333 less discount of $40,079 which will be amortized over the term of the payment obligation.