Assuming 10,000,000 Shares are subscribed for in this Offering, the gross
proceeds from this Offering will be $100,000. We expect to disburse the proceeds
from this Offering within the first 12 months after successful completion in the
priority set forth below,: The table indicates the planned use of proceeds if
25%, 50%,75% or100% of the proceeds are raised:
If 25% If 50% If 75% If 100 %
raised raised raised raised
Offering Proceeds $ 25,000 $ 50,000 $ 75,000 $ 100,000
Phase 1 exploration of the claims 0 14,500 14,500 14,500
Unpaid Offering expenses 8,187 8,187 8,187 8,187
Minimum royalty 5,000 5,000 5,000 5,000
BLM claim maintenance fee 560 560 560 560
Accounting and Audit 5,500 5,500 5,500 5,500
Legal 3,500 3,500 3,500 3,500
Edgarization 2,000 2,000 2,000 2,000
Rent, telephone and office expense 253 2,000 2,000 2,000
Reserve for Phase 2 exploration of the claims 0 8,753 33,753 58,753
Total $ 25,000 $ 50,000 $ 75,000 $ 100,000
Should the Company raise 25% or less of the Offering, they would use the
proceeds to pay the outstanding Offering expenses and the ongoing administration
and claim maintenance expenses, such as minimum royalty, BLM claim maintenance
fees, accounting, audit, legal and Edgarization costs. Phase one exploration of
the claims would be postponed until additional funding is obtained. Should the
Company raise more than $41,247, they would pay the Offering expenses, conduct
phase 1 of the exploration program, and pay the administrative and claim
maintenance costs of the Company, expected not to exceed $18,560 for the first
year. Any funds raised surplus to these needs would be reserved to begin Phase 2
of the exploration program if recommended by the Company’s Consultant after
review of the results of Phase 1. None of the Offering proceeds will be used for
compensation of officers or directors.
Working Capital
Working capital remaining after the described use of proceeds above would be
used for administrative costs and to begin Phase 11 of the exploration program
if warranted.
Offering Expenses
The Company plans to pay the balance of the unpaid expenses associated with this
Offering from the proceeds of the Offering.
Exploration of the Claim
As set forth in the table above, in addition to working capital, the Company
intends to use the net proceeds from the Offering for exploration of the Claim
including assessment, mapping and sampling.
We compete with many companies in the mining industry, including large,
established mining companies with capabilities, personnel and financial
resources that far exceed our limited resources. In addition, there is a
limited supply of desirable mineral lands available for claim-staking, lease or
acquisition in North America, and other areas where we may conduct exploration
activities. We are at a competitive disadvantage in acquiring mineral
properties, since we compete with these larger individuals and companies, many
of which have greater financial resources and larger technical staffs.
Likewise, our competition extends to locating and employing competent personnel
and contractors to prospect, develop and operate mining properties. Many of
our competitors can offer attractive compensation packages that we may not be
able to meet. Such competition may result in our Company being unable not only
to acquire desired properties, but to recruit or retain qualified employees or
to acquire the capital necessary to fund our operation and advance our
properties. Our inability to compete with other companies for these resources
would have a material adverse effect on our results of operation and business.
exploration of mineral properties. The Company has leased a group of claims
called the Dayton Claims covering approximately 80 acres located in Lyon County
Nevada (the “Dayton Claims”). This property consists of four claims held by
Robert S. Friberg (the “Lessor”) and is located about 50 miles southeast of
Reno, NV and 5.5 miles east of the town of Dayton. We refer to this group of
claims as the “Property” or the “Claims” or the “Dayton Claims” throughout this
Prospectus. We leased the claims for a period of thirty years, renewable for
additional periods, by granting Mr. Friberg a 2% NSR royalty on all production
from the property and payment of advanced minimum royalties of $5,000 on
signing, and on June 30, 2013 then $ 7,500 on June 30, 2014, $10,000 on June 30,
2015 and each June 30 thereafter. We are presently in the exploration stage at
the Property.
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Mineral property exploration is typically conducted in phases. We have not yet
commenced the initial phase of exploration on the Property; however, our
consulting geologist recommends the exploration work based on the results from
the most recent phase of technical and area review. Once we have completed each
phase of exploration and analyzed the results, we will make a decision as to
whether we will proceed with each successive phase. Our President will make this
decision based upon the recommendations of David Shaddrick. Our goal in
exploration of the Property is to ascertain whether it possesses economic
quantities of mineralization. We cannot assure you that any economical mineral
deposits exist on the Property until appropriate exploration work is completed.
Even if we complete our proposed exploration program on the Property and we are
successful in identifying a mineral deposit, we will have to spend substantial
funds on further drilling and engineering studies before we will know if we have
a commercially viable mineral deposit.
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Our principal offices are located at 7582 Las Vegas Blvd. S, Suite 552, Las
Vegas, NV 89123. Our telephone number is (702) 418-0055.