4. Related Party Notes Payable

3 Months Ended

Mar. 31, 2018

At March 31, 2018 and December 31, 2017, the Company had the following notes and interest payable to related parties:

		March 31, 2018		December 31, 2017
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	$	55,492	$	68,299
John Swallow, Company president, 5% interest, monthly payments of $5,834 with balloon payment of $322,367 in February 2020		416,576		441,163
John Swallow, Company president, 5% interest, principal and interest due February 2020		192,676		192,677
Ophir Holdings LLC, a company owned by three of the Company’s Officers, 6% interest, monthly payments of $3,777 with a balloon payment of $454,733 in February 2020		487,326		-
Margaret Bathgate, shareholder, 5% interest, principal and interest due January 2019		100,000		100,000
		1,252,070		802,139
Accrued interest payable		14,431		10,772
Total		1,266,501		812,911
Current portion		232,764		211,829
Long term portion	$	1,033,737	$	601,082

Related Party interest expense for the three-month periods ended March 31, 2018 and 2017 is as follows:

March 31, 2018		March 31, 2017
$	18,097	$	15,446

Future principal payments of debt at March 31, 2018 are as follows:

12 months ended March 31,
2019	$	232,764
2020		1,033,737
Total	$	1,266,501

On January 1, 2018 Ophir Holdings agreed to convert their Forward Gold Contract (Note 12) which at that time had an outstanding balance of 419.5 ounces with a fair value of $492,783 to a conventional note payable for the same amount. The note bears interest at 6% and has monthly principal and interest payments of $3,777 with a balloon payment of $454,733 in February 2020.

On January 1, 2018, notes with Mr. Swallow were amended to extend the balloon payments on both notes to February 2020.