Note 11 - Commitments and Contingencies Purchase Agreement On October 16, 2019, the Company entered into an Option to Purchase Agreement with Golden Minerals Company, (GMC), and its wholly-owned subsidiary, Minera de Cordilleras, S. de R.L. de C.V. (GMC Mexico), whereby the Company, through Magellan Mexico has acquired from GMC, through GMC Mexico, an exclusive option to purchase GMC Mexicos interest in concessions and related rights to its Santa Maria property in Mexico. The Company has 150 days to complete due diligence, secure funding and enter into a definitive agreement. In March 2020, the Company did not exercise the option to purchase GMC Mexicos interest in its Santa Maria property in Mexico and the option is now expired. Mining Claims As part of our acquisition of the Silver District properties from Columbus Exploration, we assumed the Red Cloud lease whose initial term expires in August 2026. The lease requires annual advance minimum royalty payments of $10,000 through the term of the lease due on the annual anniversary of the agreement. The lease is also subject to a 2% net production royalty to be paid to the lessor from the sale of precious metals extracted from the leased property. In order to maintain the BLM lode and mill site claims, annual payments are required before the end of August of each year. Payments are also due annually on two patented claims we leased in July 2015 and on our Arizona State Minerals Exploration Permit. As of December 31, 2019, all of these claims and leases are in good standing. Leases As part of our acquisition of MV2 in Mexico, we assumed the following leases payable in local currency as follows: a) Ejido S.D.A, 10 year lease, 6 hectares, executed January 2016, expires December 2025. Annual payments 25,000 MX pesos. Renewable for 10 years. b) Silverio Medina Ozuna, 3 year lease, 1 hectare, executed May 2017, expires April 2020. Annual payments 15,000 MX pesos. Renewable for 3 year periods. c) Silverio Medina Ozuna, 10 year lease, 2 hectares, executed May 2010, expires April 2020. Payment $100,000 MX pesos paid in advance at lease execution. Renewable for 10 years. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend the lease when it is reasonably certain that the Company will exercise those options. The Company does not currently believe leases are reasonably certain of being renewed. Some leasing arrangements may require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the initial ROU asset or lease liability. The Company's lease agreements do not contain any material restrictive covenants. The Company recognized operating lease cost of $2,717 during the year ended December 31, 2019. The Company had right-of-use assets of $4,419 (included in long-term prepaid expenses and other assets on the consolidated balance sheet) and right-of-use liabilities of $5,016 (included in accrued liabilities and other long term liabilities on the consolidated balance sheet) as of December 31, 2019. The Company had operating cash flows related to these leases of $2,080 for the year ended December 31, 2019. The Companys operating leases had a weighted average estimated incremental borrowing rate of 15% and a weighted average remaining term of 6.0 years as of December 31, 2019. The following table provides the maturities of lease liabilities and have been translated to US dollars using an exchange rate at December 31, 2019 of 18.86 MX pesos to US dollars: Maturity of Lease Liabilities at December 31, 2019 2020 $  2021 1,325 2022 1,325 2023 1,325 2024 1,325 2025 and thereafter 2,651 Total future undiscounted lease payments 7,951 Less: Interest (2,935 ) Present value of lease liabilities $ 5,016