It was considered sold for $5 million under contract with final $4 million due on 24th. All audited and reported in Mar 31 period 10K. No "closing" or loan involved on any normal mine JV interest. Both parties sign the agreement and both bound to fulfill all items contracted. As he said Tue, he cannot disclose what more he knows until he can do so. I'm personally very confident if the payment is not at hand he has arranged something of even greater benefit to MEXUS shareholders as always. But I've no inkling if what that may be. One thing to consider, while $4 mil'd be handy for Rancho development, if a JV offers similar then holding 50% of $10 million valued aint shabby result in a failed deal a year after.
4. DISCONTINUED OPERATIONS
On March 24, 2014, the Company resigned as the operator of the Joint Venture with Minerals La Negra S. de R.L. de C.V. and Trinidad Pacifica S. de R.L. de C.V. and sold 50 shares of the minimum fixed capital stock of Mexus Enterprises S.A. de C.V. to First Pursuit Silver de Mexico S. de R.L. de C.V. for the following consideration:
i) Assumption of $468,000 of accounts payable;
ii) Payment of $100,000 and $100,000 on July 2014 and July 2015, respectively, on behalf of the Company to Minerales de Tarchi S. de R.L. de C.V. for lease payments under an exploration agreement;
iii) 1,660,000 shares of common stock of Silver Pursuit Resources Limited; and
iv) $4,000,000 due on or before March 24, 2015.
The sale of Mexus Enterprises S.A. de C.V. met the criteria for being reported as a discontinued operation and has been segregated from continuing operations for all periods presented.
The following table summarizes the results from discontinued operations:
(1) The amounts due from First Pursuit Silver de Mexico S. de R.L. de C.V. is contracted at an interest rate substantially below market rates for similar type agreements. Accordingly, the Company imputed a discount of $571,785 at a market interest rate of approximately 16% in accordance FASB ASC 835,” Interest ”.
(2) Silver Pursuit Resources Limited shares in common stock are traded on the TSX Venture Exchange and is valued based on the closing price of $0.065 CAD approximately $0.06 US on March 24, 2014.
(3) The recovery, if any, will be recorded in the consolidated statement of operations in the period collectability is reasonably assured. The 50% interest in Mexus Enterprises S.A. de C.V. will be returned to the Company if the $4,000,000 amount is not paid by March 24, 2015.
