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EXCEL - IDEA: XBRL DOCUMENT - GOLDEN QUEEN MINING CO LTDFinancial_Report.xls
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EX-31.2 - CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER - GOLDEN QUEEN MINING CO LTDexhibit31-2.htm
EX-32.1 - SECTION 1350 CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER - GOLDEN QUEEN MINING CO LTDexhibit32-1.htm
EX-32.2 - SECTION 1350 CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER - GOLDEN QUEEN MINING CO LTDexhibit32-2.htm
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10-Q - QUARTERLY REPORT - GOLDEN QUEEN MINING CO LTDform10q.htm
EX-31.1 - CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER - GOLDEN QUEEN MINING CO LTDexhibit31-1.htm
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Commitments and Contingencies
3 Months Ended
Mar. 31, 2012
Commitments and Contingencies [Text Block]
4.

Commitments and Contingencies

   
 

The Company has acquired a number of mineral properties outright and has acquired exclusive rights to explore, develop and mine the Property under various agreements with landowners.

   
 

The Company is required to make advance minimum royalty payments related to its mineral properties. The total advance minimum royalty for the year ended December 31, 2011 was $245,970 and the Company is expected to make approximately $188,000 in 2012 to various landowners on the existing lease agreements.

   
 

A mining lease agreement with a group of landowners expired in 2004. Negotiations with the group were completed in 2011 and the agreements extended to 2041. Under the amended agreements, the Company paid advance minimum royalties of $7,500 per year for eight years for a total amount of $60,000 in August 2011 to bring the advance minimum royalties owing current to March 14, 2012.

   
 

In addition to the leases noted above, there were a number of lease agreements with other landowners that had expired in 2010 and 2011. One set of the expired lease agreements is considered material by the Company as it comprises a 50% interest in a claim group. The Company continues to negotiate to renew the leases and maintains a good relationship with the landholders involved. As the amounts cannot be reasonably estimated, the Company has not accrued any amounts in connection with the expired leases until such time the agreements are in place and the amounts are reasonably estimated.

   
 

The Company has agreed to issue 100,000 common shares as a finder’s fee upon commencement of commercial production on the Property in connection with certain property acquisitions. As of March 31, 2012, commercial production has not commenced and no shares have been issued.

   
 

In 2004, the Company entered into an agreement with the President of the Company to issue 300,000 bonus shares upon completion of certain milestones. Upon receipt by the Company of a bankable feasibility study and the decision to place the Property into commercial production, a bonus of 150,000 common shares would be issued. Upon commencement of commercial production on the Property, a bonus of 150,000 common shares would be issued. In May 2010, the Company entered into an amendment to the agreement whereby the 300,000 bonus shares would alternatively be issuable upon a change of control transaction, or upon a sale of all or substantially all of the Company’s assets, having a value at or above C$1.00 per share of the Company, with a further 300,000 bonus shares being issuable in the event the change of control transaction or asset sale occurred at a value at or above C$1.50 per share. This agreement is for a term of three years and shall automatically renew for two years. As at March 31, 2012, none of the milestones had been reached and no commitment to issue the common shares has been recorded in connection with these arrangements.