General Metals Corporation is a junior mineral resource company engaged in the acquisition, exploration, development and mining of gold, silver and other precious and base metal properties.
On November 14, 2004, as amended December 31, 2004, we entered into a letter of intent with Independence Mines, LLC and Gold Range, LLC with respect to the purchase of substantially all of the assets Gold Range, LLC uses to conduct the business of Independence Mines, LLC. We did not proceed with the acquisition in this form, instead electing to directly acquire the lease on the subject property.
On April 29, 2005, we entered into an agreement for an assignment of a lease with Gold Range, LLC. The lease to be assigned was the lease to be entered into between Gold Range, LLC and Independence Gold-Silver Mines Inc., pursuant to which Independence Gold-Silver Mines Inc. would lease to Gold Range, LLC certain unpatented mining claims located in the Battle Mountain District, Lander County, State of Nevada, as more particularly described in the lease, known also as the "Independence Mine".
The purchase price payable by us to Gold Range, LLC in consideration for the assignment of the lease was 5,000,000 of our restricted common shares and a 1% net smelter return royalty payable to Gold Range, LLC in addition to other underlying net smelter return requirements.
On March 15, 2007, we purchased 100% interest in Mikite Gold Resources ("Mikite"), a Ghanaian corporation with exclusive exploration rights to the 150 square kilometer Nyinahin mining concession near Bibiani, Ghana. Consideration paid was 1,000,000 restricted common shares with 1,000,000 share purchase warrants attached, priced @ $0.26 for a period of 2 years in satisfaction of full and complete payment.
On August 17, 2007, we entered into the First Amendment to the Mining Lease with Independence Gold-Silver Mines, Inc. and added 4 additional mining claims and 2 additional easements which claims and easements are/were included in the property description below. These claims cover the area where the existing cyanide decantation mill and operating facilities are currently sited and the area where the Pioneer haul road to and from the Sunshine pit crosses the Independence claims; specifically, Independence #1, #2, DC#83 and An Old Glory. Our annual lease payments increase by $5,000.00.
On February 29, 2008 we entered into a mining purchase agreement with 635239 B.C. Ltd., wherein we agreed to purchase a 100% interest in certain mineral claims in the Bannockburn Gold Property as well as rights to the Lloyd Patent located in the Madoc Township, Hastings County, Ontario, Canada. On or before March 15, 2008 we notified 635239 B. C. Ltd. of a potential defect in the title to the property and cancelled the agreement after paying the initial non-refundable payment of CDN$15,000.
On October 31, 2008, the Company entered into an agreement with Sunergy, Inc., in which the Company sold all of its rights to the 150 Sq. km. Nyinahin Mining Concession, in Ghana for $1,000,000 in cash and stock. The consideration for the sale is to consist of $500,000 in cash, which shall be payable as follows: (i) $50,000 which is to be provided within 5 days of the effective date of the agreement with General Metals, (ii) $200,000 which is to be provided by December 31, 2008, and (iii) the balance of $250,000 which is to be provided by April 30, 2009; and 2,000,000 restricted shares of common stock of Sunergy Inc., at a deemed value of $0.25 per share.
On November 3, 2008, the Company received a partial payment of $12,500 due on the principal payment as noted under the agreement for the sale of the Nyinahin Mining. On December 5, 2008, the Company amended the agreement with Sunergy to allow for the remainder of the initial payment to be made on or before December 31, 2008.
As of January 31, 2009, the Company has received stock consideration from Sunergy as noted in the agreement above but not the remainder of the initial payment. As such, the balance of the gain remains deferred at the date of financial position.
