Marvion Inc. 10-K

ITEM 2. PROPERTIES. We operate our corporate headquarters at 736 East Braeburn Drive, Phoenix, AZ 85022. On September 20, 2013, the Company transferred its Judgetown lease, granted a 7-year mining right on the BLM properties and a 2-year mining right to Gunner Gold, LLC in an Amended and Restated Asset Purchase Agreement. The Company had 3 sets of properties. The first are federal mining claims on BLM land totaling 435 acres. The Company pays the BLM maintenance fees annually. The second set of land is a two-year lease with an option to buy from Judgetown LLC. This lease is for 130.76 acres of patented land with lease payments of $200,000 for the calendar year 2013 and $120,000 for the calendar year 2014. In February 2013, Rick Thomas, who was a 50% owner of Judgetown LLC sold his rights to Michael Quigley of Utah. See our previous filing of form 10K/A for fiscal year ended June 30, 2012 dated June 19, 2013 for Judgetown LLC agreement and amendment to reflect the change of ownership and payment schedule and amount. The rights to the Judgetown LLC properties were sold to Gunner Gold LLC in Spetmeber 2013. The last parcel of land is referred to as the Hull Land and is approximately 20 acres of patented land which is owned by us. We borrowed the money from Freedom Boat Company for the purchase of Hull Land. The original arrangement has expired however, we continue to make the monthly interest payments of $2,500 (or 10% of the value of the note) and we have verbally reached a tentative new agreement with Freedom Boat Company under the same conditions with the added opportunity for Freedom to convert the principal to stock in the Company. Pursuant to the Amended and Restated Asset Purchase Agreement with Gunner Gold LLC, Gunner Gold LLC is making the monthly interest payments to Freedom Boat LLC on behalf of the Company for 24 months in exhcnage for the mining right to the Company’s Hull land. For the Judgetown LLC land, Bonanza owned all the mineral rights for the time period we were leasing the land. For the BLM land we only had mineral rights and no land rights. For the Hull Land we have mineral rights and ownership of the land recorded with the Yavapai county recorder. In June 2012, a geological report provided enough support in management’s opinion to pursue a small mining operation based on sample assays from all areas and to pursue a lease of the Judgetown LLC claims. BLM properties are considered lode claim and the Judgetown LLC leased land and the Hull claim are both lode and placer claims. As of October 2013, our property consists of 1 patented lode mining claims and 30 unpatented lode mining claims which cover approximately 20 acres of private land and 435 acres of BLM land in Sections 9, 10, 15, and 16, Township 10 North, Range 6 West, Gila and Salt River Base Meridian, Yavapai County, West-Central Arizona. Bonanza Goldfields Corporation owns the Hull patented lode mining claim. Until Septmeber 2013, the Company had optioned 7 other patented lode mining claims, the Lincoln, Granite Reef, Granite Reef Extension, Prescott, State, Dakota, and Planet Mier from Judgetown LLC of Wickenburg, Arizona. In addition to holding approximately 20 acres of patented mining claims, Bonanza holds 30 contiguous unpatented lode mining claims (DCM 1-24, DCM 6 Extension, DCM 12 Extension, and Hawk 1-4) which cover approximately 435 acres in Sections 10, 15, and 16, T10N, R6W, G&SRM. The unpatented lode mining claims have been recorded with the Yavapai County Recorder's Office in Prescott, Arizona and the United States Bureau of Land Management in Phoenix, Arizona. 17 The claims are more specifically described as follows: Bonanza Goldfields Corporation (Formerly referred to as the Tarantula Project) Unpatented Lode Mining Claims (Approximately 435 Acres) Claim Name Book/Page (Yavapai County Recorder's Office) AMC Number (BLM Serial Number) DCM 1 4836 920 411442 DCM 2 4836 921 411443 DCM 3 4836 922 411444 DCM 4 4836 923 411445 DCM 5 4836 924 411446 DCM 6 4836 925 411447 DCM 6 Extension 4845 317 412202 DCM 7 4836 926 411448 DCM 8 4836 927 411449 DCM 9 4836 928 411450 DCM 10 4836 929 411451 DCM 11 4836 930 411452 DCM 12 4836 931 411453 DCM 12 Extension 4845 316 412203 DCM 13 4836 932 411454 DCM 14 4836 933 411455 DCM 15 4836 934 411456 DCM 16 4836 935 411457 DCM 17 4836 936 411458 DCM 18 4836 937 411459 DCM 19 4836 938 411460 DCM 20 4836 939 411461 DCM 21 4836 940 411462 DCM 22 4836 941 411463 DCM 23 4836 942 411464 DCM 24 4836 943 411465 Hawk 1 4836 944 411466 Hawk 2 4836 945 411467 Hawk 3 4836 946 411468 Hawk 4 4836 947 411469 The DCM 1-18 and DCM 6 Extension and DCM 12 Extension lode mining claims are located in Section 10, T10N, R6W; the DCM 19-24 lode mining claims are located in Section 15, T10N, R6W; and the Hawk 1-4 lode mining claims are located in Section 16, T10N, R6W, G&SRM. 18 For the BLM Land, maintenance fees are due every August and are approximately $4,200 and taxes to Yavapai County for all of our land were approximately $1,000 for 2012. Additionally, we pay $2,500 interest per month for a note issued to purchase the Hull land. The Judgetown LLC patended claims were leased at $200,000 and $120,000 for calendar year 2013 and 2014, respectively. The project area is located approximately 4 miles north of Congress, Arizona, along the eastern flank of the Date Creek Mountains, in west-central Arizona. The property is easily accessible from Wickenburg, Arizona via approximately 17 miles of paved roads and 2 miles of graded gravel roads. Initial exploration such as geological mapping and sampling can be done on BLM land without permits. If more than 5 acres are to be disturbed, a Notice of Intent to Conduct Exploration must be submitted to the BLM. The Notice will include a reclamation bond. The approved Notice will allow bulk sampling of up to 1,000 tons of material. If the sampling program warrants further exploration with a drilling program, the Arizona Department of Water Resources will require permits for exploration drilling. To conduct exploration which disturbs more than 5 acres of surface, the BLM requires the filing of a Plan of Operation which must include a reclamation bond. The Plan of Operation must also be sent to other entities including the Arizona Department of Environmental Quality, the US Army Corps of Engineers, the Mine Safety and Health Administration, and the Arizona Department of Water Resources. Each of the entities will review the Plan of Operations and request any necessary changes. The BLM will require either an Environmental Assessment or an Environmental Impact Statement for mining on BLM claims. Processing of the mined material will be done on patented claims owned by the company, but an Aquifer Protection Permit will still be required. A pollution prevention plan and an air quality permit may also be required by the State and County. Biological and cultural surveys will also be required and will note any threatened or endangered species of plants and animals and any cultural or historical sites which must be protected. The permitting process for a mining operation is complex and can take considerable time. The effect of this permitting process and the government regulations are limited to the costs of outside consultants to perform the biological and cultural surveys and to write the Environmental Impact Statement, if required. It is not anticipated that any of these regulations or permits will prevent further development of the patented or BLM land.