Item 1.01 Entry Into a Material Definitive Agreement On February 1, 2014 , the Registrant made a cash payment of $165,000 to a private investor to extinguish a debt incurred on June 4, 2014 . As set forth in the Company's Current Report on Form 8-K filed with the US Securities and Exchange Commission on June 5, 2013 , the Registrant executed a Memorandum of Understanding (the "Agreement") dated June 4, 2013 , with a private US investor (the "Investor") for an advance sale of up to 2,120 ounces of specimen gold from the Ruby Mine in Sierra County, California . Upon signing the Agreement, the Registrant received an initial cash advance of $150,000 (the "Advance"), which was based on a 10% discount to the then-current spot price of gold, for delivery of the first 120 ounces of specimen gold produced from the Ruby Mine on or before February 1, 2014 (the "Due Date"). The Advance paid will be applied to the amount due to the Registrant on the Delivery Date, as determined by the then-current spot price of gold on the Delivery Date. In the event that 120 ounces of specimen gold is not available for delivery by the Due Date, the Investor will be entitled to be repaid the Advance in cash plus 10% interest, with an option to still purchase the same amount of gold at a discount of 10% to the then-current spot price of gold when the specimen gold becomes available for delivery at a later date. As the required amount of specimen gold was not delivered prior to the Due Date, in compliance with the terms of the agreement the Registrant on February 1, 2014 made a total cash payment of $165,000 to the Investor to repay the cash advance in full, consisting of $150,000 in principal plus $15,000 in interest. Accordingly, the debt has been settled and extinguished. As per the Agreement, the Investor still retains the right to once again purchase 120 ounces of specimen gold at a 10% discount to prevailing spot gold prices at the time of purchase at some point in the future. However, as the cash advance has now been repaid in full with interest, the original cash advance will not apply to any future purchase should the option be exercised, and the Company will once again receive the full purchase price as per the Agreement in the event the option is exercised. The foregoing is not a complete summary of the terms of the Agreement described herein and reference is made to the complete text of the Agreement as Exhibit 10.1 to this Current Report on Form 8-K, and hereby incorporated by reference. Item 9.01 Financial Statements and Exhibits (c) Exhibits 10.1 Memorandum of Understanding for Advance Sale of Specimen Gold dated June 4, 2013 , as previously filed with the Company's filing of Form 8-K, SEC file number 000-54213, filed on June 5, 2013 , and incorporated by this reference as an exhibit to this Form 8-K --------------------------------------------------------------------------------
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