| Note C - Loans and Notes Payable |
We have debt obligations outstanding at December 31, 2011
and 2010 as follows:
| |
|
2011 |
|
|
2010 |
|
| Other Notes Payable |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| A note totaling $220,000 payable to Casco Credit with an interest rate of 12% which matured on March 24, 2009. We did not pay this note when it was due. The creditor declared this note in default which resulted in the note beginning to accrue interest at a default rate of 5% per month. This note was secured by our Gold Bar Mill located 25 miles north of Eureka, Nevada. As of February 10, 2011 this note and accrued interest have been paid in full. |
|
$ |
- |
|
|
$ |
20,000 |
|
| |
|
|
|
|
|
|
|
|
| A note totaling $33,000 payable to Casco Credit with an interest rate of 12% which matured on February 21, 2010. We did not pay the note when due and the note holder declared the note in default which resulted in the note accruing interest at a 5% per month default rate. This note is secured by the Gold Bar Mill located 25 miles north of Eureka, Nevada. As of February 10, 2011 this note and accrued interest have been paid in full. |
|
|
- |
|
|
|
33,000 |
|
| |
|
|
|
|
|
|
|
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| A note totaling $15,000 payable to John Saunders with an interest rate of 8% per annum that matures on June 30, 2012. |
|
|
15,000 |
|
|
|
15,000 |
|
| |
|
|
|
|
|
|
|
|
| A note payable to Lonestar Equity Group with an interest rate of 8% that matured on June 30, 2011. On May 25, 2011 this note and accrued interest was paid in full. |
|
|
- |
|
|
|
177,360 |
|
| |
|
|
|
|
|
|
|
|
| A note payable to Miguel Simon Guardia with an interest rate of 8% per annum which matures on June 30, 2011. On May 25, 2011 this note and accrued interest were paid in full. |
|
|
- |
|
|
|
156,050 |
|
| |
|
|
|
|
|
|
|
|
| Total other notes payable |
|
$ |
15,000 |
|
|
$ |
401,410 |
|
| |
|
|
|
|
|
|
|
|
| Convertible debentures |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| A debenture payable to the John Saunders Trust dated July 7, 2008, maturing on June 30, 2012 at 8% |
|
$ |
50,000 |
|
|
$ |
50,000 |
|
| |
|
|
|
|
|
|
|
|
| A debenture payable of $52,000 to Dewey L. Williams and the Dewey L. Williams Profit Sharing Plan & Trust, maturing on May 13, 2011 at 8%. On June 13, 2011 this debenture and accrued interest was converted into 1,251,316 shares of our common stock. |
|
|
- |
|
|
|
52,000 |
|
| |
|
|
|
|
|
|
|
|
| A debenture payable to Dewey Williams, maturing on June 8, 2011 at 10%. On June 13, 2011 this debenture and accrued interest was converted into 22,077 shares of our common stock. |
|
|
- |
|
|
|
3,000 |
|
| |
|
|
|
|
|
|
|
|
| A convertible debenture payable to Richard Newberg maturing on February 3, 2012 at 10%. On June 30, 2011 this debenture and accrued interest were converted into 71,267 shares of our common stock. |
|
|
- |
|
|
|
10,000 |
|
| |
|
|
|
|
|
|
|
|
| Total convertible debentures |
|
$ |
50,000 |
|
|
$ |
115,000 |
|
| |
|
|
|
|
|
|
|
|
| Discount on debentures |
|
|
- |
|
|
|
(6,458 |
) |
| |
|
|
|
|
|
|
|
|
| Debentures (net) |
|
$ |
50,000 |
|
|
$ |
108,542 |
|
| |
|
|
|
|
|
|
|
|
| Total Loans, notes and debentures |
|
$ |
65,000 |
|
|
$ |
509,952 |
|
During the years ended December 31, 2011 and 2010, $6,458
and $50,854, respectively, were recognized for the accretion of beneficial conversion feature note discounts.
Additionally, we recognized losses on conversions of debt
that was not initially convertible and subsequently converted at a discount, of $0 and $99,890 respectively for the years ended
December 31, 2011 and 2010. |