the initial carrying value of the of the embedded conversion option exceeded the net proceeds received and created a derivative loss of $ 132,068 in the period ending december 31 , 2015. the company recorded a loan discount of $ 114,400 and the discount included oid interest of $ 10,400 and related loan costs of $ 12,000. for the year ended september 30 , 2016 , the discount amortization was $ 114,400 , and during the period of conversion we issued 6,341,355 shares of restricted common stock in satisfaction of $ 114,400 principal and accrued interest of $ 5,816. january 26 , 2016 securities purchase agreement on january 26 , 2016 ( the “ effective date ” ) , we entered into a securities purchase agreement ( the “ spa ” ) for an $ 180,000 convertible note with an accredited investor , with an annual interest rate of 7 % . the note contains an oid of $ 18,000 and related legal costs of $ 6,000. the net proceeds received by the company were $ 156,000. the maturity date of the note is january 26 , 2017. interest is due on or before the maturity date . we may redeem the note by prepaying the unpaid principal and interest on the note , upon notice , any time prior to 180 days after the effective date . if redemption is ( i ) prior to the 30th day the note is in effect ( including the 30th day ) , the redemption will be 105 % of the unpaid principal amount and accrued interest ; ( ii ) if the redemption is on the 31st day up to and including the 60th day the note is in effect , the redemption price will be 115 % of the unpaid principal amount of the note along with any accrued interest ; ( iii ) if the redemption is on the 61st day up to and including the 120th day the note is in effect , the redemption price will be 135 % of the unpaid principle amount of the note along with any accrued interest ; if the redemption is on the 121st day up to and including the 180th day the note is in effect , the redemption price will be 150 % of the unpaid principle amount of the note along with any accrued interest . the redemption must be closed and paid for within three business days of the company sending the redemption demand . the note may not be prepaid and redeemed after the 180th day . the note is convertible into shares of the company 's common stock at any time beginning on the date which is 181 days following the effective date . the conversion price is equal to 55 % of the lowest trading price of our common stock as reported on the qtcqb for the 10 prior trading days and may include the day of the notice of conversion under certain circumstances . the company agreed to reserve an initial 10,800,000 shares of common stock for conversions under the note ( the “ share reserve ” ) . we also agreed to adjust the share reserve to ensure that it always equals at least three times the total number of shares of common stock that is actually issuable if the entire note were to be converted . the oid interest of $ 18,000 and related loan costs of $ 6,000 was recorded as a discount to the note and was being amortized over the life of the loan as interest expense the note has an embedded conversion option which qualifies for derivative accounting and bifurcation under asc 815-15 , derivatives and hedging . pursuant to asc 815 , the company recognized the fair value of the embedded conversion feature as a derivative liability on july 25 , 2016 of $ 238,479 with $ 167,898 recorded as a discount to the note and $ 70,581 recorded as a day one derivative loss . on august 8 , 2016 , the investor converted the principal balance of $ 180,000 and accrued interest of $ 6,662 into 9,506,619 shares of restricted common stock . for the year ended september 30 , 2016 , the discount amortization was $ 191,898. march 16 , 2016 purchase agreement and registration rights agreement ; december 9 , 2016 amendment on march 16 , 2016 , we entered into a purchase agreement with river north , which was subsequently amended on december 9 , 2016 by amendment no . 1 thereto ( the “ amendment ” ) . pursuant to the purchase agreement we may from time to time , in our discretion , sell shares of our common stock to river north for aggregate gross proceeds of up to $ 5,000,000. unless terminated earlier , river north 's purchase commitment will automatically terminate on the earlier of the date on which river north shall have purchased company shares pursuant to the purchase agreement for an aggregate purchase price of $ 5,000,000 or march 16 , 2018. we have no obligation to sell any shares under the purchase agreement . 29 index to financial statements as provided in the purchase agreement , the company may require river north to purchase shares of common stock from time to time by delivering a put notice to river north specifying the total purchase price for the shares to be purchased ( the “ investment amount ” ) ; provided there must be a minimum of 10 trading days between deliveries of each put notice . the minimum trading days between deliveries of put notices may be adjusted downward at the discretion of river north from time to time . currently the minimum time between the put notices is five ( 5 ) days . this arrangement is also sometimes referred to herein as the “ equity line . story_separator_special_tag the purchase price will be adjusted as follows : ( i ) an additional 10 % discount to the market price will be applied if either ( a ) the closing price of the common stock on the put date is less than $ 0.10 per share , or ( b ) the average daily trading volume in dollar amount for the common stock during the ten trading days including and immediately preceding the put date is less than $ 50,000 ; ( ii ) an additional 5 % discount to the market price will be applied if the company is not deposit/withdrawal at custodian ( “ dwac ” ) eligible ; and ( iii ) an additional 10 % discount to the marker price will be applied if the company is under dtc “ chill ” status . l2 capital 's obligation to purchase shares on any settlement date is subject to customary closing conditions , including without limitation a requirement that a registration statement remain effective registering the resale by l2 capital of the shares to be issued . the l2 purchase agreement is not transferable and any benefits attached thereto may not be assigned . the l2 purchase agreement contains covenants , representations and warranties of the company and l2 capital that are typical for transactions of this type . in addition , the company and l2 capital have granted each other customary indemnification rights in connection with the l2 purchase agreement . the l2 purchase agreement may be terminated by the company at any time . 31 index to financial statements in connection with the l2 purchase agreement , the company also entered into registration rights agreement with l2 capital requiring the company to prepare and file , within 45 days , a registration statement registering the resale by l2 capital of shares to be issued under the l2 purchase agreement , to use commercially reasonable efforts to cause such registration statement to become effective , and to keep such registration statement effective until ( i ) three months after the last closing of a sale of shares under the l2 purchase agreement , ( ii ) the date when l2 capital may sell all the shares under rule 144 without volume limitations , or ( iii ) the date l2 capital no longer owns any of the shares . on february 28 , 2017 , we filed a registration statement on form s-1 ( sec file no . 333-216328 ) with the sec registering the resale of up to 26,849,394 shares of the company 's common stock that may be issued and sold to l2 capital pursuant to the l2 purchase agreement . such registration statement was declared effective by the sec on march 10 , 2017. the foregoing description of the terms of the termination with river north and the l2 purchase agreement and corresponding registration rights agreement does not purport to be complete and is subject to and qualified in its entirety by reference to the agreements themselves , copies of which are filed as exhibits 10.4 , 10.5 and 10.6 , respectively , to our current report on form 8-k filed with the sec on february 23 , 2017 , and the terms of which are incorporated herein by reference . the benefits and representations and warranties set forth in such documents ( if any ) are not intended to and do not constitute continuing representations and warranties of the company or any other party to persons not a party thereto . the offering of shares issuable under the l2 purchase agreement was not registered under the securities act , and therefore may not be offered or sold in the united states absent registration or an applicable exemption from registration requirements . for such issuances , the company is relying on the exemption from federal registration under section 4 ( 2 ) of the securities act and or rule 506 promulgated thereunder , based on the company 's belief that the offer and sale of such securities did not involve a public offering . during the fiscal year ended september 30 , 2017 , we issued a total of 14,240,321 shares of common stock to l2 capital under the purchase agreement for aggregate proceeds of $ 560,436. february 21 , 2017 convertible note and warrant financing transaction on february 21 , 2017 , we entered into a securities purchase agreement pursuant to which the company issued a convertible note ( the “ note ” ) to an accredited investor in the aggregate principal amount of $ 550,000 , or such lesser amounts based on actual advances thereunder . in order to reflect an agreed upon original issue discount , the outstanding principal amount of the note attributable to each advance is 110 % of the amount of the corresponding advance ( i.e . , a $ 100,000 advance results in outstanding principal attributable to the advance of $ 110,000 ) . upon issuance of the note , the investor made a $ 100,000 initial advance . the company and the investor must mutually agree upon any future advances under the note . amounts advanced under the note will accrue interest at seven percent per annum . except to the extent converted into common stock of the company , as discussed below , outstanding principal and interest will become due and payable on august 21 , 2017. amounts outstanding under the note are convertible at the election of the investor into common stock of the company at a conversion price equal to $ 0.0913 ( the volume weighted average price of the company 's common stock on the day prior to the issuance date ) . the note provides for various events of default upon which amounts outstanding under the note will immediately increase by 140 % and the conversion price will be permanently redefined to equal 60 % of the average of the three lowest traded prices during the 14 consecutive trading

liquidity and capital resources as of september 30 , 2017 , we had cash on hand of $ 80,416 and a working capital deficit of $ 1,270,835 , which includes a non-cash derivative instruments liability of $ 606,330. based upon our budgeted burn rate , we currently have operating capital for approximately one month . the company has historically relied on equity or debt financings to finance its ongoing operations . currently , the company intends to rely on the potential proceeds from the sale of processed concentrates and sale of stock under the purchase agreement with l2 capital to fund its ongoing operations until such time as the company can generate revenue from its mineral exploration and mining activities or enter into a joint operating venture or sale of the el capitan property . as needed , we may also seek short term financing though the sale of equity or convertible debt securities . we can not predict whether and when proceeds from the sale of concentrates will be available to help fund our continued operations . our current financing arrangements are summarized below under the caption “ recent financing activities. ” our only committed source of future financing is pursuant to the purchase agreement with l2 capital . to the extent that we are required to raise additional capital , we do not know whether it will be available on terms favorable or acceptable to us when needed , if at all . to the extent that we raise additional capital by issuing equity securities , our stockholders may experience dilution . in addition , we may grant future investors rights superior to those of our existing stockholders . if we raise additional funds by incurring debt , we could incur significant interest expense and become subject to covenants in the related transaction documentation that could affect the manner in which we conduct our business or seek to obtain future financing . if adequate additional capital is not available when required , we may be forced to reduce or eliminate our marketing efforts for the sale or a joint venture of the el capitan property , or suspend our operations entirely .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources as of september 30 , 2017 , we had cash on hand of $ 80,416 and a working capital deficit of $ 1,270,835 , which includes a non-cash derivative instruments liability of $ 606,330. based upon our budgeted burn rate , we currently have operating capital for approximately one month . the company has historically relied on equity or debt financings to finance its ongoing operations . currently , the company intends to rely on the potential proceeds from the sale of processed concentrates and sale of stock under the purchase agreement with l2 capital to fund its ongoing operations until such time as the company can generate revenue from its mineral exploration and mining activities or enter into a joint operating venture or sale of the el capitan property . as needed , we may also seek short term financing though the sale of equity or convertible debt securities . we can not predict whether and when proceeds from the sale of concentrates will be available to help fund our continued operations . our current financing arrangements are summarized below under the caption “ recent financing activities. ” our only committed source of future financing is pursuant to the purchase agreement with l2 capital . to the extent that we are required to raise additional capital , we do not know whether it will be available on terms favorable or acceptable to us when needed , if at all . to the extent that we raise additional capital by issuing equity securities , our stockholders may experience dilution . in addition , we may grant future investors rights superior to those of our existing stockholders . if we raise additional funds by incurring debt , we could incur significant interest expense and become subject to covenants in the related transaction documentation that could affect the manner in which we conduct our business or seek to obtain future financing . if adequate additional capital is not available when required , we may be forced to reduce or eliminate our marketing efforts for the sale or a joint venture of the el capitan property , or suspend our operations entirely .
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 Suspicious Activity Report : the initial carrying value of the of the embedded conversion option exceeded the net proceeds received and created a derivative loss of $ 132,068 in the period ending december 31 , 2015. the company recorded a loan discount of $ 114,400 and the discount included oid interest of $ 10,400 and related loan costs of $ 12,000. for the year ended september 30 , 2016 , the discount amortization was $ 114,400 , and during the period of conversion we issued 6,341,355 shares of restricted common stock in satisfaction of $ 114,400 principal and accrued interest of $ 5,816. january 26 , 2016 securities purchase agreement on january 26 , 2016 ( the “ effective date ” ) , we entered into a securities purchase agreement ( the “ spa ” ) for an $ 180,000 convertible note with an accredited investor , with an annual interest rate of 7 % . the note contains an oid of $ 18,000 and related legal costs of $ 6,000. the net proceeds received by the company were $ 156,000. the maturity date of the note is january 26 , 2017. interest is due on or before the maturity date . we may redeem the note by prepaying the unpaid principal and interest on the note , upon notice , any time prior to 180 days after the effective date . if redemption is ( i ) prior to the 30th day the note is in effect ( including the 30th day ) , the redemption will be 105 % of the unpaid principal amount and accrued interest ; ( ii ) if the redemption is on the 31st day up to and including the 60th day the note is in effect , the redemption price will be 115 % of the unpaid principal amount of the note along with any accrued interest ; ( iii ) if the redemption is on the 61st day up to and including the 120th day the note is in effect , the redemption price will be 135 % of the unpaid principle amount of the note along with any accrued interest ; if the redemption is on the 121st day up to and including the 180th day the note is in effect , the redemption price will be 150 % of the unpaid principle amount of the note along with any accrued interest . the redemption must be closed and paid for within three business days of the company sending the redemption demand . the note may not be prepaid and redeemed after the 180th day . the note is convertible into shares of the company 's common stock at any time beginning on the date which is 181 days following the effective date . the conversion price is equal to 55 % of the lowest trading price of our common stock as reported on the qtcqb for the 10 prior trading days and may include the day of the notice of conversion under certain circumstances . the company agreed to reserve an initial 10,800,000 shares of common stock for conversions under the note ( the “ share reserve ” ) . we also agreed to adjust the share reserve to ensure that it always equals at least three times the total number of shares of common stock that is actually issuable if the entire note were to be converted . the oid interest of $ 18,000 and related loan costs of $ 6,000 was recorded as a discount to the note and was being amortized over the life of the loan as interest expense the note has an embedded conversion option which qualifies for derivative accounting and bifurcation under asc 815-15 , derivatives and hedging . pursuant to asc 815 , the company recognized the fair value of the embedded conversion feature as a derivative liability on july 25 , 2016 of $ 238,479 with $ 167,898 recorded as a discount to the note and $ 70,581 recorded as a day one derivative loss . on august 8 , 2016 , the investor converted the principal balance of $ 180,000 and accrued interest of $ 6,662 into 9,506,619 shares of restricted common stock . for the year ended september 30 , 2016 , the discount amortization was $ 191,898. march 16 , 2016 purchase agreement and registration rights agreement ; december 9 , 2016 amendment on march 16 , 2016 , we entered into a purchase agreement with river north , which was subsequently amended on december 9 , 2016 by amendment no . 1 thereto ( the “ amendment ” ) . pursuant to the purchase agreement we may from time to time , in our discretion , sell shares of our common stock to river north for aggregate gross proceeds of up to $ 5,000,000. unless terminated earlier , river north 's purchase commitment will automatically terminate on the earlier of the date on which river north shall have purchased company shares pursuant to the purchase agreement for an aggregate purchase price of $ 5,000,000 or march 16 , 2018. we have no obligation to sell any shares under the purchase agreement . 29 index to financial statements as provided in the purchase agreement , the company may require river north to purchase shares of common stock from time to time by delivering a put notice to river north specifying the total purchase price for the shares to be purchased ( the “ investment amount ” ) ; provided there must be a minimum of 10 trading days between deliveries of each put notice . the minimum trading days between deliveries of put notices may be adjusted downward at the discretion of river north from time to time . currently the minimum time between the put notices is five ( 5 ) days . this arrangement is also sometimes referred to herein as the “ equity line . story_separator_special_tag the purchase price will be adjusted as follows : ( i ) an additional 10 % discount to the market price will be applied if either ( a ) the closing price of the common stock on the put date is less than $ 0.10 per share , or ( b ) the average daily trading volume in dollar amount for the common stock during the ten trading days including and immediately preceding the put date is less than $ 50,000 ; ( ii ) an additional 5 % discount to the market price will be applied if the company is not deposit/withdrawal at custodian ( “ dwac ” ) eligible ; and ( iii ) an additional 10 % discount to the marker price will be applied if the company is under dtc “ chill ” status . l2 capital 's obligation to purchase shares on any settlement date is subject to customary closing conditions , including without limitation a requirement that a registration statement remain effective registering the resale by l2 capital of the shares to be issued . the l2 purchase agreement is not transferable and any benefits attached thereto may not be assigned . the l2 purchase agreement contains covenants , representations and warranties of the company and l2 capital that are typical for transactions of this type . in addition , the company and l2 capital have granted each other customary indemnification rights in connection with the l2 purchase agreement . the l2 purchase agreement may be terminated by the company at any time . 31 index to financial statements in connection with the l2 purchase agreement , the company also entered into registration rights agreement with l2 capital requiring the company to prepare and file , within 45 days , a registration statement registering the resale by l2 capital of shares to be issued under the l2 purchase agreement , to use commercially reasonable efforts to cause such registration statement to become effective , and to keep such registration statement effective until ( i ) three months after the last closing of a sale of shares under the l2 purchase agreement , ( ii ) the date when l2 capital may sell all the shares under rule 144 without volume limitations , or ( iii ) the date l2 capital no longer owns any of the shares . on february 28 , 2017 , we filed a registration statement on form s-1 ( sec file no . 333-216328 ) with the sec registering the resale of up to 26,849,394 shares of the company 's common stock that may be issued and sold to l2 capital pursuant to the l2 purchase agreement . such registration statement was declared effective by the sec on march 10 , 2017. the foregoing description of the terms of the termination with river north and the l2 purchase agreement and corresponding registration rights agreement does not purport to be complete and is subject to and qualified in its entirety by reference to the agreements themselves , copies of which are filed as exhibits 10.4 , 10.5 and 10.6 , respectively , to our current report on form 8-k filed with the sec on february 23 , 2017 , and the terms of which are incorporated herein by reference . the benefits and representations and warranties set forth in such documents ( if any ) are not intended to and do not constitute continuing representations and warranties of the company or any other party to persons not a party thereto . the offering of shares issuable under the l2 purchase agreement was not registered under the securities act , and therefore may not be offered or sold in the united states absent registration or an applicable exemption from registration requirements . for such issuances , the company is relying on the exemption from federal registration under section 4 ( 2 ) of the securities act and or rule 506 promulgated thereunder , based on the company 's belief that the offer and sale of such securities did not involve a public offering . during the fiscal year ended september 30 , 2017 , we issued a total of 14,240,321 shares of common stock to l2 capital under the purchase agreement for aggregate proceeds of $ 560,436. february 21 , 2017 convertible note and warrant financing transaction on february 21 , 2017 , we entered into a securities purchase agreement pursuant to which the company issued a convertible note ( the “ note ” ) to an accredited investor in the aggregate principal amount of $ 550,000 , or such lesser amounts based on actual advances thereunder . in order to reflect an agreed upon original issue discount , the outstanding principal amount of the note attributable to each advance is 110 % of the amount of the corresponding advance ( i.e . , a $ 100,000 advance results in outstanding principal attributable to the advance of $ 110,000 ) . upon issuance of the note , the investor made a $ 100,000 initial advance . the company and the investor must mutually agree upon any future advances under the note . amounts advanced under the note will accrue interest at seven percent per annum . except to the extent converted into common stock of the company , as discussed below , outstanding principal and interest will become due and payable on august 21 , 2017. amounts outstanding under the note are convertible at the election of the investor into common stock of the company at a conversion price equal to $ 0.0913 ( the volume weighted average price of the company 's common stock on the day prior to the issuance date ) . the note provides for various events of default upon which amounts outstanding under the note will immediately increase by 140 % and the conversion price will be permanently redefined to equal 60 % of the average of the three lowest traded prices during the 14 consecutive trading

