The registrant's management determined that their shareholders...

The registrant's management determined that their shareholders would be better served if they could realize more immediate benefits than could be anticipated if the registrant were to undertake the long-range administrative and financial burdens that the building of a mine and smelter would entail. In December 2006, the registrant entered into a Share Sale Agreement with an Australian mining house to sell the Registrant's 66 2/3 percent interest in VanMag. The Registrant received $3.4 million in 2007, $845,200 in 2008 and was expecting to receive a final installment payment of $3.75 million in February 2009. A variety of problems arose which threatened and jeopardized the Mining License and as a result, and in lieu of litigation, the registrant elected to accept a final cash payment of One Million Dollars ($1,000,000) and a production royalty of fifty cents per ton capped at Three Million Dollars ($3,000,000).

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