Investment in Mining Properties and Rights	3 Months Ended
May 31, 2012
Extractive Industries
Mineral Industries Disclosures	NOTE 4 - INVESTMENT IN MINING PROPERTIES AND RIGHTS On February 8, 2011, James M. Clements, a former director and chairman of the board of directors of the Company, conveyed his rights to all mining claims and property interests in the California Mining District of La Plata County, Colorado (such property commonly known as the “Idaho Property”) for 40,000 shares of the Company’s Series A Preferred Stock valued at its stated value, or $80,000, and the Company’s assumption of an underlying note payable in the amount of $425,000 to an unrelated party. The Series A Preferred Stock was converted into Wildcat’s common stock before the Share Exchange. In addition, the Company agreed to pay the note holder $20,000 loan modification fees and interest totaling $8,286 before March 21, 2011 and issued a $25,000 secured convertible note which is convertible into 12,500 shares of Series A Preferred Stock. The Company capitalized a total of $550,000 related to the acquisition of the rights associated with the Idaho Property. On June 1, 2006, the Company entered into a ten-year mining lease for patented mining claims and improvements for property interests in the Sneffels Mining District, Ouray County, Colorado (such property commonly known as the “Mayday Mine”). The mining lease will be extended beyond ten years, for an indefinite period, as long as there is continuous mining, production and/or development on the site, with no lapse in activity for more than 365 consecutive days. The lease agreement states that no work is required at the site during the first five years, and then a minimum amount must be spent for exploration, development, mining or related operations to benefit the mining properties. Those amounts are $15,000 during the sixth year, $20,000 during the seventh year and $30,000 for each year thereafter. The Mayday lease also accrues royalty payments in advance of production based on a formula which is adjusted by the United States Department of Labor Consumer Price Index for All Urban Consumers. (“CPI-U”), with the base month of June, 2006. The accrued royalty is $14,650 and $13,340 as of May 31, 2012 and February 29, 2012, respectively. The Company also has staked a mining claim on certain property covering 357 hectares (882.6 acres) located in the Similkameen Mining Division of British Columbia, Canada (“Varca Property”). This property consists of one claim held by Iqbal Boga, as trustee, under a Declaration of Trust dated February 2, 2010 in favor of Varca and is located about 140 kilometers east of Vancouver and 23 kilometers east-northeast of Hope, south central British Columbia. Varca paid $300 to acquire the Varca Property. The Company is presently in the exploration stage at the Idaho Property, Mayday Mine, and the Varca Property, and has not yet generated revenue from mining operations.

Investment in Mining Properties and Rights

3 Months Ended

May 31, 2012

NOTE 4 - INVESTMENT IN MINING PROPERTIES AND RIGHTS

On February 8, 2011, James M. Clements, a former director and chairman of the board of directors of the Company, conveyed his rights to all mining claims and property interests in the California Mining District of La Plata County, Colorado (such property commonly known as the “Idaho Property”) for 40,000 shares of the Company’s Series A Preferred Stock valued at its stated value, or $80,000, and the Company’s assumption of an underlying note payable in the amount of $425,000 to an unrelated party. The Series A Preferred Stock was converted into Wildcat’s common stock before the Share Exchange. In addition, the Company agreed to pay the note holder $20,000 loan modification fees and interest totaling $8,286 before March 21, 2011 and issued a $25,000 secured convertible note which is convertible into 12,500 shares of Series A Preferred Stock. The Company capitalized a total of $550,000 related to the acquisition of the rights associated with the Idaho Property.

On June 1, 2006, the Company entered into a ten-year mining lease for patented mining claims and improvements for property interests in the Sneffels Mining District, Ouray County, Colorado (such property commonly known as the “Mayday Mine”). The mining lease will be extended beyond ten years, for an indefinite period, as long as there is continuous mining, production and/or development on the site, with no lapse in activity for more than 365 consecutive days. The lease agreement states that no work is required at the site during the first five years, and then a minimum amount must be spent for exploration, development, mining or related operations to benefit the mining properties. Those amounts are $15,000 during the sixth year, $20,000 during the seventh year and $30,000 for each year thereafter.

The Mayday lease also accrues royalty payments in advance of production based on a formula which is adjusted by the United States Department of Labor Consumer Price Index for All Urban Consumers. (“CPI-U”), with the base month of June, 2006. The accrued royalty is $14,650 and $13,340 as of May 31, 2012 and February 29, 2012, respectively.

The Company also has staked a mining claim on certain property covering 357 hectares (882.6 acres) located in the Similkameen Mining Division of British Columbia, Canada (“Varca Property”). This property consists of one claim held by Iqbal Boga, as trustee, under a Declaration of Trust dated February 2, 2010 in favor of Varca and is located about 140 kilometers east of Vancouver and 23 kilometers east-northeast of Hope, south central British Columbia. Varca paid $300 to acquire the Varca Property.

The Company is presently in the exploration stage at the Idaho Property, Mayday Mine, and the Varca Property, and has not yet generated revenue from mining operations.

Varca Ventures, Inc. 10-Q