AI
Tuesday, September 13, 2011 12:58:21 AM
PCFG recieves better lease terms with the new B&B claims!!! 
NOTE 8 - OPERATING LEASES
The Company has leased approximately 440 acres of privately owned land adjacent to its staked prospects from Corporate Creditors Committee LLC, by lease dated October 1, 2003. The Company paid an advance royalty of $7,500 for the first year, which amount is increased by $2,500 in each of the next five years to be $20,000 in the sixth year. For the last four years of the lease, the advance royalty is $20,000 per year. If the lease is renewed, the annual advance royalty is $20,000. The advance royalty is credited to and recoverable from the production rental amounts. The royalty is the greater of a 4% net smelter royalty or $0.50 per yard of material processed. The lease is for 10 years with a renewal option for another 10 years.
11
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On June 2, 2011 the Company’s subsidiary, Nevada Rae Gold (“NRG”) entered into a lease agreement to lease a 75% interest in 45 mining claims in Lander County, Nevada. NRG has 45 days to perform due diligence on the claims and then must pay an annual advance royalty of $15,000. The advance royalty is credited to and recoverable from the production rental amounts. The royalty on production of gold is the greater of a 4% net smelter royalty or $0.50 per yard of material processed. The lease is for 10 years with a renewal option for another 10 years.
The following is a schedule by years of future minimum lease payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of June 30, 2011:
Year ended
Total
December 31, 2011
$
35,000
December 31, 2012
35,000
December 31, 2013
35,000
December 31, 2014
35,000
Thereafter
35,000
Total
$
175,000
NOTE 8 - OPERATING LEASES
The Company has leased approximately 440 acres of privately owned land adjacent to its staked prospects from Corporate Creditors Committee LLC, by lease dated October 1, 2003. The Company paid an advance royalty of $7,500 for the first year, which amount is increased by $2,500 in each of the next five years to be $20,000 in the sixth year. For the last four years of the lease, the advance royalty is $20,000 per year. If the lease is renewed, the annual advance royalty is $20,000. The advance royalty is credited to and recoverable from the production rental amounts. The royalty is the greater of a 4% net smelter royalty or $0.50 per yard of material processed. The lease is for 10 years with a renewal option for another 10 years.
11
--------------------------------------------------------------------------------
On June 2, 2011 the Company’s subsidiary, Nevada Rae Gold (“NRG”) entered into a lease agreement to lease a 75% interest in 45 mining claims in Lander County, Nevada. NRG has 45 days to perform due diligence on the claims and then must pay an annual advance royalty of $15,000. The advance royalty is credited to and recoverable from the production rental amounts. The royalty on production of gold is the greater of a 4% net smelter royalty or $0.50 per yard of material processed. The lease is for 10 years with a renewal option for another 10 years.
The following is a schedule by years of future minimum lease payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of June 30, 2011:
Year ended
Total
December 31, 2011
$
35,000
December 31, 2012
35,000
December 31, 2013
35,000
December 31, 2014
35,000
Thereafter
35,000
Total
$
175,000
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