Mineral Properties

6 Months Ended

Oct. 31, 2013

Mineral Properties

On April 26, 2011 (as amended on July 31, 2012, November 17, 2012, May 30, 2013, and December 18, 2013), the Company entered into an agreement to acquire up to a 75% interest in 83 mineral claims located in the Eureka Mining District in Eureka County, Nevada.

To earn the first 25% interest, the Company must:

issue a $25,000 promissory note which was originally due on June 10, 2011 (issued); and

incur exploration expenditures of $250,000 on or before June 30, 2014.

To earn an additional 25% interest, the Company must:

· pay $75,000 on or before June 30, 2014; and

· incur total exploration expenditures of $750,000 on or before December 31, 2014.

To earn a further 25% interest, the Company must:

· pay $100,000 on or before June 30, 2015; and

· incur total exploration expenditures of $1,250,000 on or before December 31, 2015.

On June 29, 2011, the $25,000 promissory note was extended to September 27, 2011 and the Company agreed to pay interest at a rate of 10% per annum. On December 31, 2011, the promissory note was increased to $30,000 with $5,000 due on March 31, 2012, $5,000 due on June 30, 2012, $10,000 due on September 30, 2012, and $10,000 due on December 31, 2012. On April 27, 2012, the Company paid $5,000 of the promissory note. On July 11, 2012, the Company paid $5,000 of the promissory note. On September 20, 2012, the $10,000 due on September 30, 2012 and December 31, 2012 were each extended to February 28, 2013. On November 9, 2012, the remainder of the promissory note was cancelled.

TERRACE VENTURES INC 10-Q