Dutch Gold Resources Inc. (fka DGRI)

[Helter Skelter]

"yall like how easy it is to nail this guy"

LMAO! Now you've gone to DGRI's most recent SEC filing! Guess I have to teach you how to do proper DD. Where does it say, in this filing, anything about 20,000,000 shares? It doesn't. Where does it say, in this filing, that the transaction involved a related party. It doesn't. If you ask nicely, I'll show you...the correct filing...to get the "real deal", lol...

Btw, who do you think that...related party...was?

DUTCH GOLD RESOURCES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

BASIN GULCH

Dutch Gold Resources, Inc., was granted an assignment of the Basin Gulch Mine lease between Aultra Gold, Inc. and Strategic Minerals, Inc. as a result of the acquisition of this asset and the majority of the stock in Aultra Gold, Inc. On May 31, 2006, the Company entered into a Mining Lease Agreement with Strategic, whereby Strategic granted the Company the exclusive right to explore, evaluate, develop, and mine the Basin Gulch Property, Montana. The advanced exploration and test mining project consists of eleven patented mineral claims, surrounded by the Deer Lodge National Forest, totaling about 217.9 acres. The claims are all located at the head of Basin Gulch, on the northern slopes of the West Fork Buttes, within the Sapphire Range of the Western Montana Rocky Mountains.

The three-stage Mining Lease Agreement for Basin Gulch is structured as follows:

Stage 1 initial payment:

The Company paid its initial cash payment of $10,000 and prior to July 30, 2006 satisfied its reporting obligations to Strategic regarding all the exploration and studies conducted on the premises of Basin Gulch Property.

Stage 2 advance production royalties:

To further evaluate and develop the minerals, the Company fulfilled the following obligations:

i) By June 10, 2006, it paid a cash payment of $15,000 directly to the underlying property owner;

ii) by September 10, 2006 made a cash payment of $25,000 directly to the underlying property owner, and at the end of each flowing six month period to date.. Since 2008, Dutch Gold Resources, Inc. made such payments under an agreement with AGI, which granted a security interest in all the claims to the Company, in the event that AGI could not repay such advances;

iii) a cash payment of $25,000 will be made on September 10, 2010, and thereafter on every six months until production has commenced.

Stage 3 production royalties:

Upon commencement of production, the Company must pay the greater of:

i) A twice annual cash payment of $50,000 due on March 10 and September 10 of each year; or

ii) 3% of the gross sales receipts of the gold and silver sold, due semi-annually on March 10 and September 10 of each year;

Should production be suspended for a period of 6 months or longer, the twice annual advance production royalty of $50,000 listed above resume. Upon the completion of payments totaling $8,000,000, the Company will have purchased the mineral rights to this property.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7555040