Deposit on Mineral Rights
On June 25, 2011 the Company entered into a Mineral Property Acquisition Agreement with Firelake Resources Inc. whereby it acquired certain mineral interests in the townships of Eric and Huffman in the Province of Ontario. Consideration for the mineral interests is as follows:
1. CDN $50,000 to be paid in two equal installments of CDN $25,000 on January 31, 2012 and January 31, 2013.
2. 2,000,000 shares of common stock to be issued before January 31, 2012
3. Royalty of 2% of all net smelter returns upon commencement of commercial production at the property.
The Company has paid an advance against the required installments of $6,240 (CDN $6,000). The Company will record the full price of the acquisition when all conditions of the agreement are met.