In September 2007, IMMC purchased a 100% interest in two mining properties near Silver Peak, Nevada for US$75,000 cash and 110,000 shares. The properties include three existing lode claims covering most of the historic Nivloc mine workings and six staked claims, together totaling approximately 180 acres (together the “Nivloc Claims”). On February 25, 2011, IMMC executed an Option and Joint Venture Agreement with Silver Reserve Corp. (“SRC”), pursuant to which IMMC acquired the right to purchase up to 85% interest, subject to 2% NSR royalty, in 18 lode claims (the “NL Extension Claims”) contiguous with and surrounding IMMC’s existing Nivloc Mine claims. The interest in the NL Extension Claims will be acquired by making cash payments of US$350,000 and by issuing 1,925,000 shares over a period of five years. Following IMMC’s acquisition and a positive feasibility study, SRC has the right to contribute to the development of the 27 claim Nivloc Mine property and retain a 15% interest therein, provided that it contributes 15% of the development expenditures. Failure by SRC to contribute 15% of the expenditures will result in dilution of its interests until reaching 10%, at which time it converts to a 2% NSR Royalty.
In the Spring and Summer, 2011, IMMC increased the Nivloc Mine property size by staking a further 94 claims contiguous to the Nivloc Claims and the NL Extension Claims. Consequently, IMMC holds a 100% interest, subject to the terms and conditions of the SRC agreement, in 121 claims covering approximately 2,280 acres, certain claims of which are transected by a county road and power poles with lines, that end at the historic 16 to 1 mine, which was last operated by Sunshine Mines in the late 1980’s and is located approximately 1.5 miles from the Nivloc Mine workings.
