Note 8 Subsequent Events
i) On September 10, 2012, the Company assigned all membership units of LRE to the former President of the Company and received as consideration the release and discharge of all liabilities under all the promissory notes and accrued interest entered into prior to August 31, 2012.
ii) On September 10, 2012, the Company issued a promissory note of $20,000 to the Companys newly appointed president and received $20,000 cash in exchange. The promissory note is unsecured, bears interest at 6% per annum, and matures on September 30, 2014.
iii) Effective October 30, 2012, the Company increased the number of authorized common shares of the Company from 90,000,000 to 4,500,000,000 shares per directors resolution dated October 30, 2012. The Company also conducted a fifty to one forward stock split of the Companys issued and outstanding common shares per directors resolution. Following this stock split, the number of outstanding shares of the Companys common stock increased from 3,570,000 shares to 178,500,000 shares. All share and per share information in these financial statements has been retro-actively restated for all periods presented to give effect of this stock split.
iv) On November 2, 2012, the Company entered into a letter agreement with Magna Management Ltd. (Magna) whereby the Company was granted the exclusive right, for a period of sixty days, to negotiate for the acquisition of all rights held by Magna in a mineral Property known as Pony Gold Mountain located in southwestern Montana.
Should the acquisition be completed as contemplated the Company pay $3,000,000 in quarterly instalments of $250,000 commencing December 5, 2012. for the property. The agreement is subject to a 2% net smelter royalty.