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12. Related Party Transactions
 12 Months Ended
Dec. 31, 2019
Notes  
12. Related Party Transactions

12. Related Party Transactions

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

 

 

 

2019

 

2018

Mine Systems Design, 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 two officers and one former officer of the Company, 6% interest, monthly payments of $3,777 with a balloon payment of $148,285 in February 2021

 

189,236

 

222,131

H&H Metals, shareholder and concentrate broker, 8% interest, principal and interest due March 2021

 

27,438

 

-

Total

 

216,674

 

236,827

Current portion

 

34,924

 

47,591

Long term portion

$

181,750

$

189,236

At December 31, 2019, $34,924 of related party debt is payable in 2020 and the remaining $181,750 is payable in 2021. Related party interest expense for the years ending December 31, 2019 and 2018 was $15,169 and $40,624, respectively. There is no accrued interest payable at December 31, 2019 or 2018 on these notes.

During the years ended December 31, 2019 and 2018, the Company paid $9,000 and $40,500, respectively, to the Company’s previous chairman of the board, Del Steiner for consulting purposes. He retired in July 2019.

As of December 31, 2019 and 2018, gold sales receivable from H&H Metals, who owns 4% of the Company’s outstanding common stock, were $305,924 and $74,673, respectively. Concentrate sales to H&H Metals were $5,857,942 and $3,305,731, during the years ended December 31, 2019 and 2018, respectively.

The Company leases office space from certain related parties on a month to month basis. Payments under these short-term lease arrangements totaled $24,000 and $23,375 for the year’s ended December 31, 2019 and 2018, respectively, and are included in general and administrative expenses on the Consolidated Statement of Operations.