5. Related Party Transactions

9 Months Ended

Sep. 30, 2019

5. Related Party Transactions

At September 30, 2019 and December 31, 2018, the Company had the following notes and interest payable to related parties:

		September 30, 2019		December 31, 2018
Mine Systems Design (“MSD”), a company in which our Company’s Vice President owns 10.4%, 12% interest, monthly payments of $4,910 through March 2019	$	-	$	14,696
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 $148,285 in February 2021		197,647		222,131
H&H Metals, a company that owns 4% of the Company’s outstanding common stock, 8% interest, balance due April 2021		51,688		-
Total		249,335		236,827
Current portion		(36,095)		(47,591)
Long term portion	$	213,240	$	189,236

Related party interest expense for the nine month periods ended September 30, 2019 and 2018 is as follows:

2019				2018
Three Months		Nine Months		Three Months		Nine Months
$	4,068	$	11,497	$	4,663	$	36,491

Future principal payments of related party notes payable at September 30, 2019 are as follows:

12 months ended September 30,
2020	$	36,095
2021		213,240
Total	$	249,335

As of September 30, 2019, and December 31, 2018, accrued interest payable to related parties was $1,688 and zero, respectively.

During the three and nine month periods ended September 30, 2019 and 2018 (up until May 2019), the Company paid $3,000 per month to the Company’s chairman of the board, Del Steiner for consulting purposes. The last two months ($6,000) are recorded in accounts payable and have not been paid as of September 30. 2019.

All sales of concentrate and the Company’s gold sales receivable are with H&H Metals, owner of 4% of the Company’s outstanding common stock. See Note 4.