Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 17, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Registrant Name | Golden Minerals Co | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 36.4 | ||
Entity Common Stock, Shares Outstanding | 162,469,612 | ||
Entity Central Index Key | 0001011509 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents (Note 5) | $ 9,704 | $ 4,593 |
Short-term investments (Note 5) | 79 | |
Lease receivables | 72 | 448 |
Inventories, net (Note 7) | 284 | 231 |
Derivative at fair value (Note 8) | 254 | |
Value added tax receivable, net | 45 | |
Prepaid expenses and other assets (Note 6) | 1,130 | 669 |
Total current assets | 11,314 | 6,195 |
Property, plant and equipment, net (Note 9) | 5,520 | 6,031 |
Other long term assets (Note 10) | 1,472 | 1,131 |
Total assets | 18,306 | 13,357 |
Current liabilities | ||
Accounts payable and other accrued liabilities (Note 11) | 1,318 | 2,127 |
Deferred revenue, current (Note 17) | 535 | 472 |
Other current liabilities (Note 13) | 667 | 1,824 |
Total current liabilities | 2,520 | 4,423 |
Asset retirement and reclamation liabilities (Note 12) | 3,166 | 2,839 |
Other long term liabilities (Note 13) | 648 | 494 |
Total liabilities | 6,334 | 7,756 |
Commitments and contingencies (Note 20) | ||
Equity (Note 16) | ||
Common stock, $.01 par value, 200,000,000 shares authorized; 157,512,652 and 106,734,279 shares issued and outstanding respectively | 1,575 | 1,067 |
Additional paid in capital | 536,263 | 521,314 |
Accumulated deficit | (525,866) | (516,780) |
Shareholders' equity | 11,972 | 5,601 |
Total liabilities and equity | $ 18,306 | $ 13,357 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 157,512,652 | 106,734,279 |
Common stock, shares outstanding | 157,512,652 | 106,734,279 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | ||
Oxide plant lease (Note 17) | $ 5,637 | $ 7,730 |
Total revenue | 5,637 | 7,730 |
Costs and expenses: | ||
Oxide plant lease costs (Note 17) | (1,988) | (2,377) |
Exploration expense | (4,954) | (4,109) |
El Quevar project expense | (618) | (2,011) |
Velardeña care and maintenance costs | (1,163) | (1,797) |
Administrative expense | (3,651) | (3,614) |
Stock based compensation | (859) | (782) |
Reclamation expense | (249) | (228) |
Other operating (expense) income, net | 7 | 3,238 |
Depreciation and amortization | (962) | (1,098) |
Total costs and expenses | (14,437) | (12,778) |
Loss from operations | (8,800) | (5,048) |
Other expense: | ||
Interest and other expense, net (Note 18) | (132) | (201) |
Loss on foreign currency | (106) | (102) |
Total other loss | (238) | (303) |
Loss from operations before income taxes | (9,038) | (5,351) |
Income taxes (Note 15) | (48) | (35) |
Net loss | $ (9,086) | $ (5,386) |
Net loss per common share — basic | ||
Loss | $ (0.07) | $ (0.05) |
Weighted average Common Stock outstanding - basic | 131,774,120 | 101,058,219 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Previously ReportedCommon Stock | Previously ReportedAdditional Paid-in Capital | Cumulative Effect Adjustment | Common StockLPC Program [Member] | Common StockRegistered direct purchase agreement | Common StockSubscription Agreement | Common StockPrivate Placement | Common StockFirm Commitment Offering | Common Stock | Additional Paid-in CapitalLPC Program [Member] | Additional Paid-in CapitalRegistered direct purchase agreement | Additional Paid-in CapitalSubscription Agreement | Additional Paid-in CapitalPrivate Placement | Additional Paid-in CapitalFirm Commitment Offering | Additional Paid-in Capital | Accumulated DeficitSubscription Agreement | Accumulated Deficit | LPC Program [Member] | Registered direct purchase agreement | Subscription Agreement | Private Placement | Firm Commitment Offering | Total |
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||
Adjustment related to correction of immaterial error (Note 3) | $ (113) | $ (113) | |||||||||||||||||||||
Adjusted balance at End of period | $ 955 | $ 517,806 | (511,391) | $ 7,370 | |||||||||||||||||||
Balance at Dec. 31, 2018 | $ 955 | $ 517,806 | (511,278) | 7,483 | |||||||||||||||||||
Balance (in shares) at Dec. 31, 2018 | 95,620,796 | 95,620,796 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||
Stock compensation accrued and shares issued for vested stock awards (Note 16) | $ 3 | 556 | 559 | ||||||||||||||||||||
Stock compensation accrued and shares issued for vested stock awards (Note 16)(in shares) | 312,000 | ||||||||||||||||||||||
Modification of previously awarded KELTIP Units (Note 16) | 583 | 583 | |||||||||||||||||||||
Shares issued under the at-the-market offering agreement, net (Note 16) | $ 1 | 11 | 12 | ||||||||||||||||||||
Shares issued under the at-the-market offering agreement, net (Note 16)(in shares) | 33,995 | ||||||||||||||||||||||
Shares issued under the at-the-market offering agreement, net (Note 16) | $ 21 | $ 507 | $ 528 | ||||||||||||||||||||
Shares issued under the Lincoln Park commitment purchase agreement, net (Note 16)(in shares) | 2,113,642 | ||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 87 | $ 1,848 | $ 1,935 | ||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 8,653,846 | 2,113,642 | |||||||||||||||||||||
Deemed dividend on warrants (Note 4) | 3 | (3) | |||||||||||||||||||||
Net loss | (5,386) | (5,386) | |||||||||||||||||||||
Balance at Dec. 31, 2019 | $ 1,067 | 521,314 | (516,780) | 5,601 | |||||||||||||||||||
Balance (in shares) at Dec. 31, 2019 | 106,734,279 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||
Stock compensation accrued and shares issued for vested stock awards (Note 16) | $ 3 | 856 | 859 | ||||||||||||||||||||
Stock compensation accrued and shares issued for vested stock awards (Note 16)(in shares) | 300,000 | ||||||||||||||||||||||
Shares issued under the at-the-market offering agreement, net (Note 16) | $ 9 | 214 | 223 | ||||||||||||||||||||
Shares issued under the at-the-market offering agreement, net (Note 16)(in shares) | 823,452 | ||||||||||||||||||||||
Shares issued under the at-the-market offering agreement, net (Note 16) | $ 9 | $ 207 | $ 216 | ||||||||||||||||||||
Shares issued under the Lincoln Park commitment purchase agreement, net (Note 16)(in shares) | 900,000 | ||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 47 | $ 150 | $ 205 | $ 898 | $ 2,561 | $ 7,748 | $ 945 | $ 2,711 | $ 7,953 | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 4,719,207 | 15,000,000 | 20,535,714 | 900,000 | |||||||||||||||||||
Warrants exercised | $ 85 | 2,465 | 2,550 | ||||||||||||||||||||
Warrants exercised (in shares) | 8,500,000 | ||||||||||||||||||||||
Net loss | (9,086) | (9,086) | |||||||||||||||||||||
Balance at Dec. 31, 2020 | $ 1,575 | $ 536,263 | $ (525,866) | $ 11,972 | |||||||||||||||||||
Balance (in shares) at Dec. 31, 2020 | 157,512,652 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net cash used in operating activities (Note 19) | $ (9,484) | $ (4,395) |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 525 | 3,144 |
Acquisition of short-term investments | (59) | 113 |
Acquisitions of property, plant and equipment | (470) | (38) |
Net cash (used in) provided by investing activities | (4) | 3,219 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 14,599 | 2,476 |
Proceeds from related party loan (Note 23) | 1,000 | |
Payment of related party loan (Note 23) | (1,000) | |
Net cash from financing activities | 14,599 | 2,476 |
Net Increase in cash and cash equivalents | 5,111 | 1,300 |
Cash and cash equivalents, beginning of period | 4,593 | 3,293 |
Cash and cash equivalents, end of period | $ 9,704 | $ 4,593 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Operations | |
Nature of Operations | 1. N ature of Operations The Company is a mining company, holding a 100% interest in the Rodeo property in Durango State, Mexico, a 100% interest in the Velardeña and Chicago precious metals mining properties and associated oxide and sulfide processing plants in the state of Durango, Mexico (the “Velardeña Properties”), a 100% interest in the El Quevar advanced exploration silver property in the province of Salta, Argentina, which is subject to the terms of the April 9, 2020 earn-in agreement (the “Earn-in Agreement”) pursuant to which Barrick Gold Corporation (“Barrick”) has the option to earn a 70% interest in the El Quevar project (see Note 16) , and a diversified portfolio of precious metals and other mineral exploration properties located primarily in or near historical precious metals producing regions of Argentina, Nevada and Mexico. The Rodeo property, Velardeña Properties and the El Quevar advanced exploration property are the Company’s only material properties. The Company is primarily focused on mining operations at the Rodeo property as well as further studies of a restart plan for Velardeña, including use of bio-oxidation to improve the payable gold recovery. The Company is also focused on (i) advancing our El Quevar exploration property in Argentina through the Earn-in Agreement with Barrick and (ii) continuing to evaluate and search for mining opportunities in North America (including Mexico) with near term prospects of mining, and particularly for properties with reasonable haulage distances of our processing plants at the Velardeña Properties. The Company is also reviewing strategic opportunities, focusing primarily on development or operating properties in North America, including Mexico. The Company began mining activities at the Rodeo property during December 2020. All associated costs were expensed as incurred and are included in Exploration costs in the accompanying Consolidated Statements of Operations. The Company incurred approximately $0.2 million in such costs during December 2020. The Company maintains a core group of employees at the Velardeña Properties, most of whom have been assigned to operate and provide administrative support for the oxide plant, which was previously leased to a subsidiary of Hecla Mining Company (see Note 17). The employees at the Velardeña Properties also include an exploration group and an operations and administrative group to continue to advance the Company’s plans in Mexico, including the start-up of mining and processing activities for the Rodeo property, and to provide oversight for corporate compliance activities as well as maintaining and safeguarding the longer-term value of the Velardeña Properties assets. The Company incurred approximately $1.2 million and $1.7 million in care and maintenance costs for the years ended December 31, 2020 and December 31, 2019, respectively. Processing of Rodeo mined material at the Company’s Velardeña Properties began in January 2021. The Company is considered an exploration stage company under the criteria set forth by the SEC as the Company has not yet demonstrated the existence of proven or probable mineral reserves, as defined by SEC Industry Guide 7, at any of the Company’s properties. As a result, and in accordance with GAAP for exploration stage companies, all expenditures for exploration and evaluation of the Company’s properties are expensed as incurred. As such, the Company’s financial statements may not be comparable to the financial statements of mining companies that do have proven and probable mineral reserves. Such companies would typically capitalize certain development costs including infrastructure development and mining activities to access the ore. The capitalized costs would be amortized on a units-of-production basis as reserves are mined. The amortized costs are typically allocated to inventory and eventually to cost of sales as the inventories are sold. As the Company does not have proven and probable reserves, substantially all expenditures at the Company’s Rodeo property and the Velardeña Properties for mine construction activity, as well as operating costs associated with the mill facilities, and for items that do not have a readily identifiable market value apart from the mineralized material, have been expensed as incurred. Such costs are charged to cost of metals sold or project expense during the period depending on the nature of the costs. Certain of the costs may be reflected in inventories prior to the sale of the product. The term “mineralized material” as used herein, although permissible under SEC Industry Guide 7, does not indicate “reserves” by SEC standards. The Company cannot be certain that any deposits at any of its properties will ever be confirmed or converted into SEC Industry Guide 7 compliant “reserves”. |
Correction of Immaterial Error
Correction of Immaterial Error - Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Correction of Immaterial Error – Income Taxes | |
Correction of Immaterial Error – Income Taxes | 2 . In the third quarter 2019, the Company became aware that it had failed to timely file withholding tax returns and pay taxes that were due at the end of 2017 and 2018 relating to return of capital distributions made to the Company by one of the Company’s wholly-owned subsidiaries (see Note 15). The effect of correcting this error was to reduce beginning retained earnings by $154,000 and $113,000 at January 1, 2018 and January 1, 2019, respectively as reflected in the accompanying Condensed Consolidated Statements of Changes in Equity. The Company evaluated the materiality of the error described above from a qualitative and quantitative perspective. Based on such evaluation, the Company concluded that the correction would not be material to any individual prior period, nor did it have an effect on the trend of financial results, taking into account the requirements of the SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in 2019 Financial Statements (“SAB 108”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 3 . The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of the Company’s consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineralized material and related future metals prices that are the basis for future cash flow estimates utilized in impairment calculations; depreciation, depletion and amortization calculations; environmental reclamation and closure obligations; valuation allowances for deferred tax assets and the fair value of financial instruments. The Company based its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates under different assumptions or conditions. The policies adopted, considered by management to be significant, are summarized as follows: a. All of the Company’s consolidated subsidiaries are 100% owned and as such the Company does not have a noncontrolling interest in any of its subsidiaries. All intercompany transactions and balances have been eliminated at consolidation. b. The Company’s revenue and external funding are primarily denominated in U.S. dollars. Additionally, substantially all of the Company’s significant expenditures are made with reference to U.S. dollars. Accordingly, the Company and its subsidiaries use the U.S. dollar as their functional and reporting currency. c. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. d. Materials and supplies inventories are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. The Company routinely counts and evaluates its material and supplies to determine the existence of any obsolete stock that is subject to impairment. e. The Company expenses general prospecting costs and the costs of acquiring and exploring unevaluated mineral properties. When a mineral property is determined to have proven and probable reserves, subsequent development costs are capitalized to mineral properties. For acquired mineral properties with proven and probable reserves, the Company capitalizes acquisition costs and subsequent development costs. When mineral properties are developed and operations commence, capitalized costs are charged to operations using the units-of-production method over proven and probable reserves. Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized in the accompanying Consolidated Statements of Operations. As discussed in Note 1, the Company is considered an exploration stage company under the criteria set forth by the SEC since it has not yet demonstrated the existence of proven or probable reserves at any of the Company’s properties. As such, during the periods prior to November 2015 when the Company suspended mining and processing activities, the Company expensed costs as incurred related to extraction of mineralized material at the Velardeña Properties. On a quarterly basis the Company evaluates its exploration properties to determine if they meet the Company’s minimum requirements for continued evaluation. The rights to the properties that do not meet the minimum requirements are relinquished and the carrying values, if any, are written off and reflected in “Other operating income, net” on the accompanying Consolidated Statements of Operations and Comprehensive Loss. f. Buildings are depreciated using the straight–line method over the estimated useful lives of 30 to 40 years or the life of the mine whichever is shorter. Mining equipment and machinery, excluding the plant, are depreciated using the straight-line method over useful lives of three to eight years or the lease period, whichever is shorter. Mineral properties and the plant are depreciated using units of production based on estimated mineralized material. Other furniture and equipment are depreciated using the straight-line method over estimated useful lives of three to five years. As discussed above, the Company does not have any properties with proven or probable reserves. Property, plant and equipment are recorded at cost and per the guidance of ASC 360 the Company assesses the recoverability of its property, plant and equipment, including goodwill, whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If the sum of estimated future net cash flows on an undiscounted basis is less than the carrying amount of the related asset, impairment is considered to exist. The related impairment loss is measured by comparing estimated future net cash flows on a discounted basis or by comparing other market indicators to the carrying amount of the asset. The Company evaluated its remaining long lived assets at December 31, 2020 and 2019, and determined that no impairment was required. g. The Company records asset retirement obligations (“ARO”) in accordance with ASC 410, “Asset Retirement and Environmental Obligations” (“ASC 410”), which establishes a uniform methodology for accounting for estimated reclamation and abandonment costs. According to ASC 410, the fair value of an ARO is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. An offsetting asset retirement cost (“ARC”) is capitalized as part of the carrying value of the assets with which it is associated, and depreciated over the useful life of the asset (see Note 12). The Company prepares estimates of the timing and amount of expected cash flows when an ARO is incurred. The fair value of the ARO is measured by discounting the expected cash flows using a discount rate that reflects the credit adjusted risk-free rate of interest. The Company records the fair value of an ARO when it is incurred and layer adjustments of the ARO are recorded as an adjustment to the corresponding ARC. The ARO is adjusted to reflect the passage of time (accretion cost) calculated by applying the discount rate implicit in the initial fair value measurement to the beginning-of-period carrying amount of the ARO. The Company records accretion costs to expense as incurred. h. The Company pays value added tax (“VAT”) in Mexico as well as other countries, primarily related to exploration projects. The amounts are generally charged to expense as incurred because of the uncertainty of recoverability. i. The Company recognizes oxide plant lease fees and reimbursements for labor, utility and other costs as " Revenue from Oxide plant lease " in the Consolidated Statements of Operations following the guidance of Topic Leases 842 (“ASC 842”). ASC 842 supports recording as gross revenue the reimbursement of expenses incurred directly by the Company in performing its obligations under the lease in situations where the entity has control over the specific goods or services transferred to a customer as a principal versus as an agent. The actual costs incurred for reimbursed direct labor and utility costs are reported as “ Oxide plant lease costs ” in the Consolidated Statements of Operations. The Company recognizes lease fees during the period the fees are earned per the terms of the lease (see Note 17). j Stock based compensation costs are recognized per the guidance of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award (see Note 16). Stock grants are valued at their grant date at fair value which in the case of options requires the use of the Black-Scholes option pricing model. Per ASC 718 the grants may be classified as equity grants or liability grants depending on the terms of the grant. k. Effective January 1, 2019 the Company adopted ASU 2016-02 and ASU No. 2018-11, which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement (see Note 4). l. Basic income (loss) per share is computed by dividing net income (loss) available to holders of the Company’s Common Stock by the weighted average number of shares of Common Stock outstanding for the period. Diluted income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock. At December 31, 2020 and 2019, all potentially dilutive shares were excluded from the computation of diluted earnings per share because to include them would have been anti-dilutive. m. Comprehensive income (loss) is defined as all changes in equity (deficit), exclusive of transactions with stockholders, such as capital investments. Comprehensive income (loss) includes net income (loss) and changes in certain assets and liabilities that are reported directly in equity. During the first quarter 2018 the Company adopted ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which amended its accounting treatment for the recognition, measurement, presentation and disclosure of certain financial assets. ASU 2016-01 requires equity investments that have a readily determinable fair value to be measured at fair value through net income. Previously, entities would recognize changes in fair value of available-for-sale equity securities in other comprehensive income and would recognize in net income impairment losses that were other-than-temporary. There will no longer be an available-for-sale classification (with changes in fair value reported in other comprehensive income) for equity securities with readily determinable fair values. n. The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. The Company files United States and certain other foreign country income tax returns, and pays taxes reasonably determined to be due. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s income tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company classifies income tax related interest and penalties as income tax expense. o. During the first quarter 2020 the Company adopted ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. As the Company’s principal credit risk is related to its Lease Receivables the adoption of this update did not result in a material impact on the Company’s consolidated financial position or results of operations. During the first quarter 2019 the Company adopted ASU 2016-02, “Leases” (“ASU 2016-02”) and ASU No. 2018-11 “Leases (Topic 842)” (“ASU 2018-11”), which require lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For a lessor, the accounting applied is largely unchanged from previous guidance. The Company currently leases administrative offices in the U.S. and in several foreign locations under lease agreements that typically exceed one year. The Company has elected the modified retrospective method of adopting ASU 2016-02 (see Note 4). p. There were no new accounting pronouncements issued during 2020 that would affect the Company or have a material impact on its consolidated financial position or results of operations. |
Change in Accounting Principle
Change in Accounting Principle | 12 Months Ended |
Dec. 31, 2020 | |
Change in Accounting Principle | |
Change in Accounting Principle | 4. Leases Effective January 1, 2019 the Company adopted ASU 2016-02 and ASU 2018-11, which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For a lessor, the accounting applied is largely unchanged from previous guidance. The Company currently leases administrative offices in the U.S. and in several foreign locations under lease agreements that typically exceed one year. The Company has elected the modified retrospective method of adopting ASU 2016-02 per Topic 842. The Company has elected to apply several practical expedients available under the application of ASU 2016-02 and ASU 2018-11, which allowed the Company to forego reassessing the classification of existing or expiring leases, evaluating whether any existing or expiring contracts contain leases or reassessing previously recorded indirect costs. The Company did not elect the practical expedient permitting the combination of lease and non lease components of the contract. The adoption of ASU 2016-02 and ASU 2018-11 at January 1, 2019 resulted in only a negligible difference to amounts already recorded by the Company in its Consolidated Balance Sheets as of December 31, 2018, and as result the Company did not record an adjustment to the beginning balance of retained earnings at January 1, 2019, as required under the modified retrospective method. The Company has included its right of use assets for the office leases described above in “ Other long-term assets ” (Note 10) and its office lease liabilities in “ Other liabilities ”, short term and long term (Note 13), in the Company’s Consolidated Balance Sheets for the periods ended December 31, 2020 and 2019. Warrant Liability In July 2017, the FASB issued ASU 2017-11, “ Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part 1) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception” (“ASU 2017-11”). F or freestanding equity-classified financial instruments, ASU 2017-11 requires entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Certain equity transactions following the issuance of the 2014 warrants have triggered anti-dilution clauses in the warrant agreements resulting in additional warrant shares and a reduction to the original strike price of the warrants. ASU 2017-11 prescribes a method to measure the value of a deemed dividend related to a triggering event by computing the difference in fair value between two instruments that have terms consistent with the actual instrument but that do not have a down round feature, where the number of warrant shares and strike price of one instrument corresponds to the actual instrument before the triggering event and the number of warrant shares and strike price of the other instrument corresponds to the actual instrument immediately after the triggering event. Following ASU 2017-11, for the year ending December 31, 2019 the Company reduced its accumulated deficit by approximately $3,000 related to triggering events. No triggering events occurred during the year ended December 31, 2020. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents and Short-Term Investments | |
Cash and Cash Equivalents and Short-Term Investments | 5. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Short-term investments include investments with maturities greater than three months, but not exceeding 12 months, or highly liquid investments with maturities greater than 12 months that the Company intends to liquidate during the next 12 months for working capital needs. The following tables summarize the Company's short-term investments at December 31, 2020: Estimated Carrying December 31, 2020 Cost Fair Value Value (in thousands) Investments: Short-term: Trading securities $ 59 $ 79 $ 79 Total trading securities 59 79 79 Total short term $ 59 $ 79 $ 79 The short-term investments at December 31, 2020, consist of 1,000,000 common shares of Fabled Silver Gold Corp., formerly known as Fabled Copper Corp. (“Fabled”), a junior mining company that entered into an option agreement with the Company to acquire the Company’s option to earn a 100% interest in the Santa Maria mining claims located in Chihuahua, Mexico (see Note 9). The 1,000,000 common shares were issued to the Company as partial consideration per the terms of the option agreement. The Company previously owned 7,500,000 common shares of Golden Tag Resources, Ltd. (“Golden Tag”), a junior mining company that was a joint venture partner in the Company’s previously owned San Diego exploration property in Mexico. All the Golden Tag shares were sold during the third quarter 2019, resulting in net proceeds of approximately $113,000. For the year ended December 31, 2019 the Company recorded total losses related to ownership of the Golden Tag shares of approximately $217,000 recorded in “ Interest and other income (expense), net ” in the accompanying Consolidated Statements of Operations. The Company had no short-term investments at December 31, 2019. Credit Risk The Company invests substantially all of its excess cash with high credit-quality financial institutions or in U.S. government or debt securities. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. For cash and equivalents and investments, credit risk represents the carrying amount on the balance sheet. The Company mitigates credit risk for cash and equivalents and investments by placing its funds and investments with high credit-quality financial institutions, limiting the amount of exposure to each of the financial institutions, monitoring the financial condition of the financial institutions and investing only in government and corporate securities rated “investment grade” or better. The Company invests with financial institutions that maintain a net worth of not less than $1 billion and are members in good standing of the Securities Investor Protection Corporation. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses and Other Assets | |
Prepaid Expenses and Other Assets | 6. Prepaid expenses and other assets consist of the following: December 31, December 31, 2020 2019 (in thousands) Prepaid insurance $ 571 $ 494 Recoupable deposits and other 559 175 $ 1,130 $ 669 Recoupable deposits and other includes $0.2 million related to a recoupable deposit paid to a contractor engaged in mining activities at the Rodeo property (see Note 10). The deposit will be credited towards costs charged by the mining contractor evenly over the first four months of 2021. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2020 | |
Inventories, net | |
Inventories, net | 7. Inventories at the Velardeña Properties were as follows: December 31, December 31, 2020 2019 (in thousands) Material and supplies $ 284 $ 231 $ 284 $ 231 The material and supplies inventory at December 31, 2020 and 2019 are related to the Velardeña Properties and are reduced by a $0.2 million obsolescence reserve. |
Derivative at Fair Value
Derivative at Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Derivative at Fair Value | |
Derivative at Fair Value | 8 . On December 3, 2019 the Company entered into an amendment to the Velardeña oxide plant lease agreement (the “Hecla Lease”) with Minera Hecla, S.A. de C.V. (“Hecla”), a Mexican corporation and wholly-owned subsidiary of Hecla Mining Company, reducing the variable per tonne fee contained in the lease agreement from $22.00 to $11.00. Under certain silver price and delivered ore head grade limits, as fully discussed in Note 17, the variable per tonne fee could be increased back to the previous $22.00 per tonne. Pursuant to ASC Topics 815-Derivatives and Hedging (“ASC 815”) and 842-Leases (“ASC 842”), arrangements with variable lease payments must be evaluated to assess whether they contain embedded derivatives. If embedded derivatives are not “clearly and closely related” to the lease contract, they must be bifurcated and accounted for separately from the host contract. The Company determined that the potential for the Company to receive an additional $11.00 variable per tonne fee if certain conditions relating to the silver price and delivered ore head grades are met does not qualify for the “clearly and closely related” exception, and as a result, the potential additional $11.00 variable per tonne fee constitutes a derivative that must be valued and accounted for apart from the host lease contract. Per the guidance of ASC 842, the Company has determined that the amendment to the Hecla Lease constituted a modification that must be accounted for as a new lease commencing on December 2, 2019, the date the amendment was agreed upon by both parties, and expiring on December 31, 2020. The Company is treating the fair value of the derivative received at the time of the modification to the lease agreement as an upfront lease payment that will be amortized over the remaining life of the lease on a straight line basis (see Note 14 for a discussion of the valuation method used to compute the fair value of the derivative). At December 2, 2019, the Company had recorded a “ Derivative at fair value” asset and “ Deferred Revenue” of approximately $194,000 on the Consolidated Balance Sheet related to the amended Hecla Lease. At December 31, 2019 the Company recognized additional “Revenue - plant lease” on the Company’s Consolidated Statements of Operations and an increase to the derivative of approximately $59,000 related to the change in the fair value of the derivative between the December 2, 2019 amendment date and December 31, 2019. The Company also recognized approximately $15,000 “Revenue - plant lease” on the Company’s Consolidated Statements of Operations related to the amortization of the deferred revenue. For the year ended December 31, 2020 the Company recognized a reduction of $254,000 to “Revenue - plant lease” on the Company’s Condensed Consolidated Statements of Operations related to the change in the fair value of the derivative between December 31, 2019 and the termination of the Hecla Lease on November 30, 2020 (see Note 17). During the year ended December 31, 2020, the Company also recognized approximately $180,000 “Revenue - plant lease” on the Company’s Condensed Consolidated Statements of Operations related to the amortization of deferred revenue. At December 31, 2019 the Company recognized additional “Revenue - plant lease” on the Company’s Consolidated Statements of Operations and an increase to the derivative of approximately $59,000 related to the change in the fair value of the derivative between the December 2, 2019 amendment date and December 31, 2019. The Company also recognized approximately $15,000 “Revenue - plant lease” on the Company’s Consolidated Statements of Operations related to the amortization of the deferred revenue. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | 9. Property, plant and equipment, net The components of property, plant, and equipment, net were as follows: December 31, December 31, 2020 2019 (in thousands) Mineral properties $ 9,353 $ 9,353 Exploration properties 2,418 2,518 Royalty properties 200 200 Buildings 3,755 3,755 Mining equipment and machinery 16,135 16,049 Other furniture and equipment 890 884 Construction in progress 259 — Asset retirement cost 948 866 33,958 33,625 Less: Accumulated depreciation and amortization (28,438) (27,594) $ 5,520 $ 6,031 Construction in Progress Construction in progress is related to upgrades being made at the Velardeña Properties processing plant related to the processing of the Rodeo mined material. Sale of Santa Maria Property On July 14, 2020, we entered into a binding letter of intent with Fabled Silver Gold Corp., formerly known as Fabled Copper Corp. (“Fabled”), for a potential transaction pursuant to which Fabled would acquire the Company’s option to earn a 100% interest in the Santa Maria mining claims (“Santa Maria Properties”) located in Chihuahua, Mexico (the “Option”). Entry into a definitive agreement regarding the Option was subject to a number of contingencies. On December 4, 2020, the Company entered into a definitive option agreement (the “Option Agreement”) to sell its Option to Fabled. The period to exercise the Option (the “Exercise Period”) expires on December 4, 2022, unless extended by the parties under the terms of the Option Agreement. As consideration for the Option Agreement, Fabled (i) paid $500,000 in cash to the Company and issued to the Company 1,000,000 shares of Fabled’s common stock; (ii) will pay $1,500,000 in cash to the Company on the one year anniversary date following the closing of the Option Agreement; (iii) will pay $2,000,000 in cash to the Company on the two year anniversary date following the closing of the Option Agreement; and (iv) upon exercise of the Option Agreement, will grant the Company a 1% net smelter return royalty on the Maria, Martia III, Maria II Frac. I, Santa Maria and Punto Com concessions (the “Concessions”). Pursuant to the Option Agreement, during the Exercise Period, Fabled is obligated to pay to each of the owners of the Concessions (the “Owners”) any remaining required payments due to the Owners pursuant to the various underlying option agreements between the Owners and the Company, and to make all payments and perform all other requirements needed to maintain the Concessions in good standing. Should Fabled not complete its obligations described above, the Santa Maria mining claims will revert to the Company and the Company will be entitled to keep any payments made by Fabled under the terms of the Option Agreement. Fabled has the right to terminate the Option Agreement at any time, and the Option Agreement could be terminated, at the Company’s option, if Fabled fails to make subsequent payments when due. If the Option Agreement is terminated, the Santa Maria Properties will revert back to the full ownership and control of the Company and any payments that have been made by Fabled will be nonrefundable. Upon receipt of each cash payment, the Option Agreement imposes a performance obligation on the Company to provide Fabled an exclusive right to the Santa Maria Properties to conduct exploration and mining activities during the period from receipt of the payment until the due date of the next required payment. Accordingly, the Company has determined that its performance obligation for each option payment received is satisfied over time. The Company has previously expensed all of its costs associated with the Santa Maria Properties. Because of Fabled’s ability to terminate the Option Agreement at any time, and the associated uncertainty relating to future payments, the Company only recognizes income, equal to the cash payments made and fair value of stock issued, evenly over the period covered by each payment. The Company has recognized approximately $23,000 of income under the Option Agreement for the period ended December 31, 2020, included in “ Other operating income, net ” in the accompanying Consolidated Statements of Operations. The Company has also recorded deferred revenue of approximately $535,000 at December 31, 2020 representing its unearned performance obligation related to the Option Agreement, included in “Deferred revenue” as reported in the accompanying Consolidated Balance Sheets. Sale of Mogotes and Pistachon Properties On December 18, 2019, the Company sold the non-strategic Mogotes and Pistachon properties in Mexico to a subsidiary of Industrias Peñoles for $3.0 million. The Mogotes and Pistachon properties are comprised of a total of four mining concessions located near the Company’s Velardeña Properties. Upon receipt of the cash payment, which occurred on the date the properties were sold, all of the Company’s rights and obligations relating to the properties were transferred and the Company had no further performance obligations under the sale agreement. The Company had previously expensed all costs associated with the Mogotes and Pistachon properties and accordingly recognized a gain of $3.0 million included in “ Other operating income, net ” in the accompanying Consolidated Statements of Operations and Comprehensive Loss for the year ended December 31, 2019. |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Long-Term Assets | |
Other Long-Term Assets | 10. Other long-term assets at December 31, 2020 and December 31, 2019 consist of the following: December 31, December 31, 2020 2019 (in thousands) Deferred offering costs $ 479 $ 511 Right of use assets 993 620 $ 1,472 $ 1,131 The deferred offering costs are associated with the LPC Program and ATM Agreement (see Note 16). The right of use assets include approximately $0.5 million related to certain office leases and $0.5 million related to a mining equipment lease at our Rodeo property. The Company took possession of new office space and began a new long-term lease for its principal headquarters office with an effective commencement date of June 1, 2019. The new office lease will expire five years and eight full calendar months following the commencement date. There are no options to extend the lease beyond the stated term. The Company recorded a right of use asset of approximately $465,000 and a lease liability of approximately $450,000 in the second quarter of 2019 based on the net present value of the future lease payments discounted at 9.5%, which represents the Company’s incremental borrowing rate for purposes of applying the guidance of Topic 842. As required, the Company will recognize a single lease cost on a straight-line basis. The Company also has long-term office leases in Mexico and Argentina that expired in 2019 and recorded a combined lease liability of approximately $45,000 and combined right of use asset of approximately $45,000 relating to both of those leases at January 1, 2019. In November 2019, the Company renewed its Mexican office lease for four years and recorded a right of use asset and lease liability of approximately $174,000. In December 2019, the Company also renewed its Argentina office lease for two years and recorded a right of use asset and lease liability of approximately $18,000. In December 2020, the Company’s wholly-owned subsidiary, Minera de Cordilleras S. de R.L. de C.V., entered into an agreement with Triturados del Guadiana, S.A de C.V. (“Trigusa”), whereby Trigusa will carry out mining activities at the Rodeo property. Per the terms of the mining agreement, Trigusa will provide services for the 27-month period ending March 31, 2023, with the potential for an extension of time upon mutual agreement of both parties. The Company has determined that the mining agreement contains an embedded lease, relating to the mining equipment provided by Trigusa, per the guidance of ASU 2016-02 and Topic 842. The Company did not elect the practical expedient permitting the combination of lease and non lease components of the mining agreement. The Company recorded a right of use asset and a lease liability of approximately $420,000 based on the net present value of the future lease payments discounted at 7.0%, which represents the Company’s incremental borrowing rate. The lease liabilities noted above have been included in “ Other liabilities ”, short term and long term (Note 13), in the Company’s Consolidated Balance Sheets at December 31, 2020. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Other Accrued Liabilities | |
Accounts Payable and Other Accrued Liabilities | 11. The Company’s accounts payable and other accrued liabilities consist of the following: December 31, December 31, 2020 2019 (in thousands) Accounts payable and accruals $ 472 $ 710 Accrued employee compensation and benefits 846 724 Value added tax payable — 401 Income taxes payable — 292 $ 1,318 $ 2,127 December 31, 2020 Accounts payable and accruals at December 31, 2020 are primarily related to amounts due to contractors and suppliers in the amounts of $0.3 million related to the Company’s Velardeña and Rodeo properties and $0.2 million related to exploration and corporate administrative activities. Accrued employee compensation and benefits at December 31, 2020 consist of $0.3 million of accrued vacation payable and $0.5 million related to withholding taxes and benefits payable. Included in the $0.8 million of accrued employee compensation and benefits is $0.6 million related to activities at the Velardeña and Rodeo Properties. December 31, 2019 Accounts payable and accruals at December 31, 2019 are primarily related to amounts due to contractors and suppliers in the amounts of $0.3 million related to the Company’s Velardeña Properties and $0.3 million related to corporate administrative and exploration activities. Accrued employee compensation and benefits at December 31, 2019 consist of $0.2 million of accrued vacation payable and $0.5 million related to withholding taxes and benefits payable. Included in the $0.7 million of accrued employee compensation and benefits is $0.5 million related to activities at the Velardeña Properties. The VAT payable is primarily related to VAT collected on the sale of the Mogotes and Pistachon properties in Mexico, completed in December 2019 with such amount being remitted to the Mexican government in January 2020. The Company has recorded VAT paid in Mexico and related to the Velardeña Properties as a recoverable asset. At December 31, 2019, the Company recorded approximately $73,000 of VAT receivable as a reduction to VAT payable presented in the table above. The income taxes payable are related to certain Canadian taxes due on capital distributions the Company received from its Canadian subsidiary (see Note 15). |
Asset Retirement and Reclamatio
Asset Retirement and Reclamation Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement and Reclamation Liabilities | |
Asset Retirement and Reclamation Liabilities | 12. The Company retained the services of a mining engineering firm to prepare a detailed closure plan for the Velardeña Properties. The plan was completed during the second quarter 2012 and indicated that the Company had an ARO and offsetting ARC of approximately $1.9 million. The estimated $3.5 million ARO and ARC that was recorded at the time of the acquisition of the Velardeña Properties was adjusted accordingly. The Company will continue to accrue additional estimated ARO amounts based on an asset retirement plan as activities requiring future reclamation and remediation occur. During the years ended December 31, 2020 and 2019 the Company recognized approximately $0.2 million of accretion expense each year. The following table summarizes activity in the Velardeña Properties ARO: Year Ended December 31, 2020 2019 (in thousands) Beginning balance $ 2,825 $ 2,660 Changes in estimates, and other 82 (60) Accretion expense 249 225 Ending balance $ 3,156 $ 2,825 The change in estimate of the ARO recorded during both periods are primarily the result of changes in assumptions related to inflation factors and the timing of future expenditures used in the determination of future cash flows. The ARO set forth on the accompanying Consolidated Balance Sheets at December 31, 2020 and December 31, 2019 includes a nominal amount of reclamation liability related to activities at the El Quevar project in Argentina. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities | |
Other Liabilities | 13. Other Current Liabilities The following table sets forth the Company’s other current liabilities at December 31, 2020 and 2019: December 31, December 31, 2020 2019 (in thousands) Autlán refundable deposit $ — $ 1,251 Premium financing 390 455 Office lease liability 138 118 Mining equipment lease liability 139 — $ 667 $ 1,824 The premium financing at December 31, 2020 consists of the remaining balance, plus accrued interest, related to premiums payable for the Company’s directors and officers insurance and general liability insurance. In June 2020, the Company financed $110,000 of its premium for general liability insurance. The premium was payable in twelve equal payments at an interest rate of 5.74% per annum. At December 31, 2020, the remaining balance, plus accrued interest, was approximately $23,000. In December 2020 the Company financed approximately $406,000 of its premium for directors and officers insurance. The premium is payable in eight equal payments at an interest rate of 5.74% per annum. At December 31, 2020 the remaining balance, plus accrued interest, was approximately $363,000. The premium financing at December 31, 2019 consists of the remaining balance, plus accrued interest, related to premiums payable for the Company’s directors and officers insurance and general liability insurance. In June 2019 the company financed $151,000 of its premium for general liability insurance. The premium is payable in twelve equal payments at an interest rate of 5.74% per annum. At December 31, 2019, the remaining balance, plus accrued interest, was approximately $51,000. In December 2019 the company financed $482,000 of its premium for directors and officers insurance. The premium is payable in twelve equal payments at an interest rate of 5.74% per annum. At December 31, 2019 the remaining balance, plus accrued interest, was approximately $404,000. The office lease liability is related to lease liabilities for office space at the Company’s principal headquarters in Golden, Colorado and in Mexico and Argentina (see Note 10). The mining equipment lease liability is related to equipment used by the contract miner at our Rodeo property (see Note 10). The Autlán refundable deposit at December 31, 2019 reflects the remaining principal plus interest liability related to the deposit received for the proposed sale of the Company’s Velardeña Properties and other mineral concessions to Compañía Minera Autlán S.A.B. de C.V. (“Autlán”) in June 2019. O n September 11, 2019, the Company announced that A utlán exercised its right to terminate the agreement for the purchase of the properties. As a result of termination of the agreement, the Company was required to repay the original $1.5 million refundable deposit amount by making monthly payments of $257,000, commencing on December 9, 2019, until the deposit amount was repaid with interest at approximately 11% per annum. On April 7, 2020, the Company and Autlán agreed to reduce the monthly payments to $81,000 and the interest rate applicable to the unpaid repayment amount was increased from 11% per annum to 12% per annum, effective on April 9, 2020, with the remaining balance due in full by December 2020. During August 2020, the Company repaid Autlán the remaining $1.5 million refundable deposit, plus approximately $66,000 of interest, in full. The Company recorded approximately $55,000 of interest expense for the year ended December 31, 2020 related to the Autlán refundable deposit. Other Long-Term Liabilities Other long-term liabilities of $0.6 million for the period ended December 31, 2020 consist of $0.3 million related to a mining equipment lease liability at our Rodeo property and $0.3 million related to lease liabilities for office space at the Company’s principal headquarters in Golden Colorado and in Mexico and Argentina (see Note 10). Other long-term liabilities of $0.5 million for the period ended December 31, 2019 are primarily related to lease liabilities for office space at the Company’s principal headquarters in Golden, Colorado and in Mexico and Argentina (see Note 10). |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | 14. Financial assets and liabilities and nonfinancial assets and liabilities are measured at fair value on a recurring (annual) basis under a framework of a fair value hierarchy which prioritizes the inputs into valuation techniques used to measure fair value into three broad levels. This hierarchy gives the highest priority to quoted prices (unadjusted) in active markets and the lowest priority to unobservable inputs. Further, financial assets and liabilities should be classified by level in their entirety based upon the lowest level of input that was significant to the fair value measurement. The three levels of the fair value hierarchy per ASC 820 are as follows: Level 1: Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data. Level 3: Unobservable inputs due to the fact that there is little or no market activity. This entails using assumptions in models which estimate what market participants would use in pricing the asset or liability. Recurring Fair Value Measurements The following table summarizes the Company’s financial assets and liabilities measured on a recurring basis at fair value at December 31, 2020 and 2019 by respective level of the fair value hierarchy: Level 1 Level 2 Level 3 Total (in thousands) At December 31, 2020 Assets: Cash and cash equivalents $ 9,704 $ — $ — $ 9,704 Short-term investments 79 — — 79 $ 9,783 $ — $ — $ 9,783 At December 31, 2019 Assets: Cash and cash equivalents $ 4,593 $ — $ — $ 4,593 Derivative at fair value — — 254 254 $ 4,593 $ — $ 254 $ 4,847 The Company’s cash equivalents, comprised principally of U.S. treasury securities, are classified within Level 1 of the fair value hierarchy. The Company’s short-term investments consist of the 1,000,000 shares of common stock of Fabled and are classified within Level 1 of the fair value hierarchy (see Note 9) At December 31, 2019, the Company had recorded a “Derivative at Fair Value” asset on the Consolidated Balance Sheets related to the amendment to the Hecla Lease (see Notes 8 and 17). The Company has determined that the portion of the variable lease payment that is based on the average price of silver and the average grade of material processed during a given month represents an embedded derivative (see Note 8). The Company assesses the fair value of the derivative at the end of each reporting period, with changes in the value recorded as an increase or decrease to “ Oxide Plant Revenue” on the Company’s Consolidated Statements of Operations. The derivative asset was recorded at fair value as of December 2, 2019, the effective date of the amendment to the Hecla Lease, and at December 31, 2019, based primarily on a valuation performed by a third-party expert using a Monte Carlo simulation and an option pricing model to calculate the potential discounted cash flow from the derivative based on the probability that the price of silver will have an average price for any given month during 2020 that equals or exceeds $20.00 per ounce or a grade processed equal to or exceeding 1,000 grams per tonne combined with a risk adjusted estimate of material to be processed. The valuation falls within Level 3 of the fair value hierarchy. The valuation policies are approved by the Chief Financial Officer who reviews and approves the inputs used in the fair value calculations and the changes in fair value measurements from period to period for reasonableness. Fair value measurements are discussed with the Company’s Chief Executive Officer, as deemed appropriate. The valuation model primarily takes into consideration the potential discounted cash flow from the derivative based on the probability that the price of silver will have an average price for any given month during 2020 that equals or exceeds $20.00 per ounce or a grade processed equal to or exceeding 1,000 grams per tonne combined with a risk adjusted estimate of material to be processed. The Hecla Lease terminated effective November 30, 2020, and the remaining derivative was recorded as a decrease to “ Oxide Plant Revenue” on the Company’s Consolidated Statements of Operations. The Company did not have any other derivatives measured at fair value at December 31, 2020. At December 31, 2020 the Company did not have any financial assets or liabilities classified within Level 2 or Level 3 of the fair value hierarchy. At December 31, 2019 the Company did not have any financial assets or liabilities classified within Level 2 of the fair value hierarchy. Non-recurring Fair Value Measurements There were no non-recurring fair value measurements at December 31, 2020 or December 31, 2019. The Company assesses the fair value of its long lived assets if circumstances indicate a change in the fair value has occurred. The valuation policies are approved by the Chief Financial Officer who reviews and approves the inputs used in the fair value calculations and the changes in fair value measurements from period to period for reasonableness. Fair value measurements are discussed with the Company’s Chief Executive Officer, as deemed appropriate. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | 15. The Company accounts for income taxes in accordance with the provisions of ASC 740 on a tax jurisdictional basis. The provision for income taxes consists of the following: For the Year Ended December 31, 2020 2019 CURRENT TAXES: (in thousands) United States $ — $ — Other Countries 48 35 $ 48 $ 35 DEFERRED TAXES: United States $ — $ — Other Countries — — $ — $ — Total income tax provision $ 48 $ 35 Income (loss) from operations before income taxes by country consists of the following: For the Year Ended December 31, 2020 2019 (in thousands) United States $ (9,056) $ (7,373) Other Countries 18 2,022 $ (9,038) $ (5,351) The Company recorded $48,000 and $35,000 of current tax expense for the years ended December 31, 2020 and December 31, 2019, respectively, stemming primarily from taxable income of a subsidiary in Mexico. No deferred taxes were recorded in 2020 or 2019, as any such tax expense or benefit incurred during the year has been offset against a change in the valuation allowance of various deferred tax assets in each country. A reconciliation of the provision for income taxes computed at the statutory rate to the provision for income taxes as shown in the Consolidated Statements of Operations and Comprehensive Loss is summarized below. For Year Ended December 31, 2020 2019 (in thousands) Tax expense (benefit) at U.S. rate of 21% $ (1,898) $ (1,124) Other adjustments: Rate differential of other jurisdictions 46 292 Effects of foreign earnings (1,021) (937) Change in valuation allowance 7,246 (78) Provision to tax return true-ups (478) (24) Exchange rate changes on deferred tax assets (4,050) 1,340 GILTI inclusion — 537 Inflation adjustment on net operating losses (547) (1,183) Expired net operating losses 753 1,138 Other (3) 74 Income tax provision $ 48 $ 35 The components of the deferred tax assets and deferred tax liabilities are as follows: For the year ended December 31, 2020 2019 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 119,109 $ 112,553 Stock-based compensation 747 671 Property, plant and equipment 3,287 2,940 Other 3,364 2,985 126,507 119,149 Less: Valuation allowance (125,528) (118,283) Total deferred tax assets 979 866 Deferred tax liabilities: Property, plant and equipment (778) (686) Other (201) (180) Total deferred tax liabilities (979) (866) Net deferred tax asset (liability) $ — $ — In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its Consolidated Balance Sheets. The net deferred tax liability as of December 31, 2020 and December 31, 2019 was zero. During 2019, one of the Company’s foreign subsidiaries had significant taxable income prior to net operating loss carryovers, which resulted in a Global Intangible Low Tax Income (GILTI) inclusion of approximately $2.6M. The GILTI income was fully offset by the Company’s current U.S. income tax losses. There was no GILTI income inclusion in 2020. At December 31, 2020 the Company had net operating loss carryforwards in the U.S. and in certain non-U.S. jurisdictions totaling $463.5 million. Of these, $75.7 million is related to the Velardeña Properties in Mexico and expires in future years through 2030, $13.0 million is related to other Mexico exploration activities expiring in future years through 2030, $98.2 million exists in Spain and has no expiration date, and $194.0 million exists in other non-U.S. countries, which will expire in future years through 2037. In the U.S. there are $82.6 million of net operating loss carryforwards which have no expiration. The valuation allowance offsetting the net deferred tax assets of the Company of $125.5 million and $118.3 million at December 31, 2020 and 2019, respectively, relates primarily to the uncertain utilization of certain deferred tax assets, primarily net operating loss carryforwards, in various tax jurisdictions. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that deferred tax assets can be realized prior to their expiration. In the third quarter 2019, the Company became aware that it had failed to timely file withholding tax returns and pay taxes that were due relating to return of capital distributions made to the Company by ECU Silver Mining Inc. (the Company’s wholly-owned Canadian subsidiary) at the end of 2017 and 2018. The capital distributions constituted dividends under Canadian tax law, subject to a 5% withholding tax. The Canadian withholding taxes, which constituted taxes on income for the months of December 2017 and December 2018, totaled approximately $292,000 at December 31, 2019, including an estimate of interest due of approximately $23,000 on the late filing. The Company has accrued this amount in “other accrued liabilities” in its Condensed Consolidated Balance Sheets at December 31, 2019. The Company has treated the income tax expense related to this liability as the correction of an accounting error and has adjusted the beginning balance of retained earnings at January 1, 2018 and January 1, 2019 (Note 2). In February 2020 the Company applied to enter into the Canadian Revenue Agency’s Voluntary Disclosure Program, whereby the Company paid the taxes and the estimated interest due and requested abatement of any penalties or additional interest that may apply. If the Canada Revenue Agency denies the Company’s request for abatement, additional interest and penalties could be assessed. The Company, a Delaware corporation, and its subsidiaries file tax returns in the United States and in various foreign jurisdictions. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is less than a more-likely-than-not probability of the position being upheld upon review by the relevant taxing authority. Such positions are deemed to be “unrecognized tax benefits” which require additional disclosure and recognition of a liability within the financial statements. If recognized, none of the unrecognized tax benefits would affect the Company’s effective tax rate. The Company had no unrecognized tax benefits at December 31, 2020 or December 31, 2019, due to their offset by net deferred tax benefits, as described below. Below is a reconciliation of the beginning and ending amount of gross unrecognized tax benefits, which excludes any estimated penalties and interest on all identified unrecognized tax benefits. The Company’s unrecognized tax benefits as of December 31, 2020 and 2019 are completely offset by net deferred tax benefits and therefore do not appear on the Consolidated Balance Sheet. The Year Ended December 31, 2020 2019 (in thousands) Gross unrecognized tax benefits at beginning of period $ 269 $ 373 Increases for tax positions taken during prior years — — Decreases relating to settlements with taxing authorities — — Reductions due to lapse of statute of limitations (20) (104) Gross unrecognized tax benefits at end of period $ 249 $ 269 Tax years as early as 2014 remain open and are subject to examination in the Company’s principal tax jurisdictions. The Company does not expect a significant change to its net unrecognized tax benefits over the next 12 months. No interest and penalties were recognized in the Consolidated Statement of Operations and Comprehensive Loss for the year ended December 31, 2020 or 2019, and there were no interest and penalties recognized in the statement of financial position as of December 31, 2020 and 2019. The Company classifies income tax related interest and penalties as income tax expense. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity | |
Equity | 16. Public offering On July 21, 2020, the Company entered into an Amended and Restated Underwriting Agreement (the “Underwriting Agreement”) with H.C. Wainwright & Co., LLC as representative of the underwriters named in Schedule I thereto (the “Underwriters”), providing for the issuance and sale by the Company in a firm commitment offering (the “Offering”) of 17,857,143 shares of common stock at a price to the public of $0.42 per share (the “Offering Shares”). In addition, the Company granted the Underwriters an option to purchase, at the public offering price per share of common stock, up to an additional 2,678,571 shares of common stock, exercisable for 30 days from the date of the Underwriting Agreement (the “Option Shares”). The Offering Shares and Option Shares were registered pursuant to the Company’s registration statement on Form S-3 (File No. 333-220461), and a prospectus supplement thereto filed with the Securities and Exchange Commission. On July 24, 2020, the Underwriters acquired the Offering Shares and the full amount of the Option Shares from the Company. After the underwriting discount of 6% and total offering expenses of approximately $155,000 the company received net proceeds of approximately $8.0 million from the sale of the Offering Shares and the Option Shares. 2020 offering and private placement transaction On April 20, 2020, the Company entered into a securities purchase agreement with certain institutional investors providing for the issuance and sale of 15,000,000 shares of the Company’s common stock at a price of $0.20 per share, and in a concurrent private placement transaction, the issuance of an aggregate of 11,250,000 warrants, ultimately consisting of 7,500,000 series A warrants and 3,750,000 series B warrants (each a “Warrant” and collectively, the “Warrants”), to purchase up to 11,250,000 shares of our common stock at an exercise price of $0.30 per share, for aggregate gross proceeds of $3.0 million (the “Offering”). The securities purchase agreement granted the institutional investors the right to collectively participate in up to 50% of any future offerings of securities by the Company on the same terms as other investors, other than certain “exempt issuances” and “permitted sales” as defined in the securities purchase agreement, until April 22, 2021. Each Warrant is exercisable six months from the date of issuance on April 22, 2020 and has a term expiring five years after such initial exercise date. The Warrants contain so-called full-ratchet anti-dilution provisions which may be triggered upon any future issuance by the Company of shares of its common stock or common stock equivalents at a per share price below the then-exercise price of the Warrant, subject to certain exceptions; provided, however, that with respect to the Series B warrants, the adjusted exercise price will not be less than $0.26. The net proceeds of the Offering were recorded in equity and appear as a separate line item in the Condensed Consolidated Statements of Changes in Equity. Total costs for the Offering were approximately $334,000, including listing fees, legal and other costs, and the placement agent fee of six percent of aggregate gross proceeds, however, a reduced fee was accepted with respect to one investor. All such costs were recorded as a reduction to “Additional paid in capital” on the Condensed Consolidated Balance Sheets. Using the Black Scholes model, and assuming no triggering events take place to reduce the exercise price of the warrants, the fair value of the combined Series A and Series B warrants issued was approximately $1.9 million on April 22, 2020, the date of issuance of the warrants. The Black Scholes inputs included the closing stock price on April 22, 2020 (the date of issuance of the warrants) of $0.24, the exercise price and exercise period of the warrants, the Company’s applicable volatility rate for the period of the Warrants of 95%, and the applicable risk-free rate of 0.41%. Subscription agreement In connection with the Earn-In Agreement, the Company and Barrick entered into the Subscription Agreement dated as of April 9, 2020 pursuant to which Barrick purchased 4,719,207 shares of the Company’s common stock at a purchase price of $0.2119 per share in a private placement transaction. The Shares were offered and sold without registration under the Securities Act of 1933, as amended (the “Act”) in reliance on the exemptions provided by Section 4(a)(2) of the Act and/or Regulation D promulgated thereunder. The net proceeds of the Subscription Agreement of approximately $0.9 million were recorded in equity and appear as a separate line item in the Condensed Consolidated Statements of Changes in Equi ty. 2019 offering and private placement transaction On July 17, 2019, the Company entered into an agreement with certain institutional investors providing for the issuance and sale of 8,653,846 shares of the Company’s common stock at a price of $0.26 per share, and in a concurrent private placement transaction, the issuance of 8,653,846 Series A warrants to purchase up to 8,653,846 shares of the Company’s common stock at an exercise price of $0.35 per share, for aggregate gross proceeds of $2.25 million (the “Offering”). Each Series A warrant became exercisable on January 17, 2020 and will expire on January 17, 2025, five years from the initial exercise date. Each of the investors in the Offering held warrants that were issued by the Company in May 2016 and were exercisable until November 2021 at an exercise price of $0.75 per share. In connection with the Offering, the Company also agreed to exchange, on a one-for-one basis, the May 2016 warrants for Series B warrants to purchase 4,500,000 shares of common stock at an exercise price of $0.35 per share. Each Series B warrant became exercisable on January 17, 2020 and will expire on May 20, 2022 but are otherwise subject to the same terms and conditions as the Series A warrants. The net proceeds of the Offering were recorded in equity and appear as a separate line item in the Condensed Consolidated Statements of Changes in Equity. Total costs for the Offering were approximately $0.3 million, including the placement agent fee of six percent of aggregate gross proceeds, listing fees and legal and other costs. Such costs were recorded as a reduction to “ Additional paid in capital ” on the Condensed Consolidated Balance Sheets. Using the Black Scholes model, the fair value of the Series A warrants issued was approximately $2.1 million and the incremental fair value of the Series B warrants, when compared to the warrants that they replaced, was approximately $0.3 million. The Black Scholes inputs for the Series A warrants included the closing stock price on July 16, 2019 (the day preceding the date the Company entered into the agreement to issue the shares) of $0.33, the exercise price and exercise period of the warrants, the Company’s applicable volatility rate for the period of the Series A warrants of 95%, and the applicable risk-free rate of 1.9%. The Black Scholes inputs for the Series B warrants included the closing stock price on July 16, 2019 of $0.33, the exercise price and exercise period of the warrants, the Company’s applicable volatility rate for the period of the Series B warrants of 88%, and the applicable risk-free rate of 1.9%. Registered direct purchase agreement and commitment purchase agreement and registration rights agreement On May 9, 2018 the Company entered into a registered direct purchase agreement (the “Registered Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“LPC”) pursuant to which LPC purchased 3,153,808 shares of the Company’s common stock at a price of $0.4122 per share, the closing price of the Company’s common stock on the NYSE American on May 8, 2018, for an aggregate purchase price of $1.3 million. On May 9, 2018, the Company entered into a commitment purchase agreement (the “Commitment Purchase Agreement” and together with the Registered Purchase Agreement, the “LPC Program”) and a registration rights agreement (the “Registration Rights Agreement”) with LPC, pursuant to which the Company, at its sole discretion, has the right to sell up to an additional $10.0 million of the Company’s common stock to LPC, subject to certain limitations and conditions contained in the Commitment Purchase Agreement. The Company closed on the Commitment Purchase Agreement in July 2018, which is currently set to expire in May 2021. Subject to the terms of the Commitment Purchase Agreement, the Company will control the timing and amount of any future sale of the Company’s common stock to LPC. LPC has no right to require any sales by the Company under the Commitment Purchase Agreement but is obligated to make purchases at the Company’s sole direction, as governed by such agreement. There are no upper limits to the price LPC may be obligated to pay to purchase common stock from the Company and the purchase price of the shares will be based on the prevailing market prices of the Company’s shares at the time of each sale to LPC. LPC has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s shares of common stock. The Company has the right to terminate the Commitment Purchase Agreement at any time, at its discretion, without any cost or penalty. Other long-term assets ” on the Condensed Consolidated Balance Sheets as of December 31, 2020. During the year ended December 31, 2019 the Company sold 2,113,642 shares of common stock to LPC under the LPC Program at an average sales price per share of approximately $0.28, resulting in net proceeds of approximately $590,000. In addition, approximately $58,000 of LPC Program costs were amortized, resulting in a remaining balance of $376,000 of deferred LPC Program costs, recorded in “ Other long-term assets ” on the Condensed Consolidated Balance Sheets as of December 31, 2019. There are currently 12.2 million shares remaining available for issuance under the LPC Program. At the Market Offering Agreement In December 2016, the Company entered into an at-the-market offering agreement (as amended from time to time, the “ATM Agreement”) with H. C. Wainwright & Co., LLC (“Wainwright”), under which the Company may, from time to time, issue and sell shares of the Company’s common stock through Wainwright as sales manager in an at-the-market offering under a prospectus supplement for aggregate sales proceeds of up to $5.0 million (the “ATM Program”) or a maximum of 10 million shares. On September 29, 2017, the Company entered into an amendment to the ATM Agreement with Wainwright to reflect a new registration statement on Form S-3 (File No. 333-220461) under which shares of the Company’s common stock may be sold under the ATM Program. On November 23, 2018 the Company entered into a second amendment of the ATM Agreement extending the agreement until the earlier of December 20, 2020, or the date that the ATM Agreement is terminated in accordance with the terms therein. On December 11, 2020 the Company entered into a third amendment of the ATM Agreement further extending the agreement so that it will remain in full force and effect until such time as the ATM Agreement is terminated in accordance with certain other terms therein or upon mutual agreement by the parties, and to reflect a new registration statement on Form S-3 (No. 333-249218). Offers or sales of common shares under the ATM Program will be made only in the United States and no offers or sales of common shares under the ATM Agreement will be made in Canada. The common stock will be distributed at the market prices prevailing at the time of sale. As a result, prices of the common stock sold under the ATM Program may vary as between purchasers and during the period of distribution. The ATM Agreement provides that Wainwright will be entitled to compensation for its services at a commission rate of 2.0% of the gross sales price per share of common stock sold. During the year ended December 31, 2020, the Company sold an aggregate of 823,452 shares of common stock under the ATM Agreement at an average price of $0.28 per share of common stock for net proceeds of approximately $223,000. In addition, approximately $8,000 of deferred ATM Program costs were amortized, resulting in a remaining balance of $127,000 of deferred ATM Program costs, recorded in “ Other long-term assets ” on the Condensed Consolidated Balance Sheets as of December 31, 2020. During the year ended December 31, 2019, the Company sold an aggregate of 33,995 shares of common stock under the ATM Agreement at an average price of $0.34 per share of common stock for total proceeds of approximately $11,000. In addition, approximately $1,000 of deferred ATM Program costs were amortized, resulting in a remaining balance of $135,000 of deferred ATM Program costs, recorded in “ Other long-term assets ” on the Condensed Consolidated Balance Sheets as of December 31, 2020. Subsequent to December 31, 2020 the Company sold an aggregate of approximately 1,856,960 common shares under the ATM Program at an average price of $0.97 per common share for gross proceeds of approximately $1.8 million during the year-to-date period ended February 17, 2021. The Company paid a 2% cash commission on the gross proceeds in the amount of approximately $37,000 and incurred additional accounting, legal, and regulatory costs of approximately $6,000. There is currently approximately $2.2 million remaining available for issuance under the ATM Program based on a prospectus supplement filed with SEC on December 11, 2020. Equity Incentive Plans Under the Company’s Amended and Restated 2009 Equity Incentive Plan (the “Equity Plan”) awards of the Company’s common stock may be made to officers, directors, employees, consultants and agents of the Company and its subsidiaries. The Company recognizes stock-based compensation costs using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award. The following table summarizes the status of the Company’s restricted stock grants issued under the Equity Plan at December 31, 2020 and 2019 and changes during the years then ended: The Year Ended December 31, 2020 2019 Weighted Weighted Average Grant Average Date Fair Grant Date Number of Value Per Number of Fair Value Restricted Stock Grants Shares Share Shares Per Share Outstanding at December 31, 2019 318,003 $ 0.30 340,001 $ 0.45 Granted during the period 300,000 0.42 312,000 0.26 Restrictions lifted during the period (394,001) 0.36 (333,998) 0.41 Forfeited during the period — — — — Outstanding December 31, 2020 224,002 $ 0.36 318,003 $ 0.30 During the year ended December 31, 2020 the Company recognized approximately $0.1 million of compensation expense related to the restricted stock grants. The Company expects to recognize additional compensation expense related to these awards of approximately $0.1 million over the next 18 months. During the year ended December 31, 2020, 300,000 shares were granted to seven employees, with one-third of the grants vesting on the grant date and the remaining shares vesting equally on the first and second anniversaries of the grant date. In addition to the vesting of one-third of the shares granted in 2020, restrictions were lifted on the normal vesting of 214,001 shares granted to seven employees in prior years. Also, during the period, the Company lifted restrictions on 80,000 restricted shares and recognized additional compensation expense of $23,000 related to the resignation of an employee during the period. During the year ended December 31, 2019 the Company recognized approximately $0.1 million of compensation expense related to the restricted stock grants. During the year ended December 31, 2019, 312,000 shares were granted to two employees, with 104,000 shares vesting on the grant date and the remaining shares vesting equally on the first and second anniversaries of the grant date. In addition, during 2019, restrictions were lifted on 229,998 shares granted to five employees in a prior year. The following table summarizes the status of the Company’s stock option grants issued under the Equity Plan at December 31, 2020 and 2019 and changes during the years then ended: The Year Ended December 31, 2020 2019 Weighted Weighted Average Average Exercise Exercise Number of Price Per Number of Price Per Equity Plan Options Shares Share Shares Share Outstanding at December 31, 2019 30,310 $ 8.06 30,310 $ 8.06 Granted during the period — — — — Forfeited or expired during period (30,310) $ 8.06 — — Exercised during period — — — — Outstanding December 31, 2020 — $ — 30,310 $ 8.06 Exercisable at end of period — $ — 30,310 $ 8.06 Granted and vested — $ — 30,310 $ 8.06 As of December 31, 2020, all of the prior stock options granted had expired. The Company does not expect to record any additional expense related to these options. Also, pursuant to the Equity Plan, the Company’s Board of Directors adopted the Non-Employee Director’s Deferred Compensation and Equity Award Plan (the “Deferred Compensation Plan”). Pursuant to the Deferred Compensation Plan the non-employee directors receive a portion of their compensation in the form of Restricted Stock Units (“RSUs”) issued under the Equity Plan. The RSUs vest on the first anniversary of the grant and each vested RSU entitles the director to receive one unrestricted share of common stock upon the termination of the director’s board service. The following table summarizes the status of the RSU grants issued under the Deferred Compensation Plan at December 31, 2020 and 2019 and changes during the years then ended: The Year Ended December 31, 2020 2019 Weighted Weighted Average Grant Average Date Fair Grant Date Number of Value Per Number of Fair Value Restricted Stock Units Shares Share Shares Per Share Outstanding at December 31, 2019 2,830,038 $ 0.78 2,230,038 $ 0.93 Granted during the period 780,000 0.40 600,000 0.24 Restrictions lifted during the period — — — — Forfeited during the period — — — — Outstanding December 31, 2020 3,610,038 $ 0.70 2,830,038 $ 0.78 For the years ended December 31, 2020 and 2019 the Company recognized approximately $0.3 million and approximately $0.2 million of compensation expense, respectively, related to the RSU grants. During the years ended December 31, 2020 and 2019, 80,000 and 100,000 RSUs, respectively, were granted to each of the six board members. Included in the RSUs granted during the period were 300,000 RSUs awarded to the directors in lieu of the annual cash retainer. Such RSUs vested upon grant and the Company recorded $120,000 of stock compensation expense related to the grant. The Company expects to recognize additional compensation expense related to the RSU grants of approximately $0.1 million over the next six months. Key Employee Long-Term Incentive Plan The Company’s 2013 Key Employee Long-Term Incentive Plan (the “KELTIP”) provides for the grant of units (“KELTIP Units”) to certain officers and key employees of the Company, which units will, once vested, entitle such officers and employees to receive an amount, in cash or in Company common stock (such method of settlement at the sole discretion of the Board of Directors) issued pursuant to the Company’s Equity Plan, measured generally by the price of the Company’s common stock on the settlement date. KELTIP Units are not an actual equity interest in the Company and are solely unfunded and unsecured obligations of the Company that are not transferable and do not provide the holder with any stockholder rights. Payment of the settlement amount of vested KELTIP Units is deferred generally until the earlier of a change of control of the Company or the date the grantee ceases to serve as an officer or employee of the Company. On May 21, 2020, the Company awarded a total of 1,400,000 KELTIP Units to two officers of the Company and recognized compensation expense of approximately $448,000. On February 26, 2019, the Company awarded a total of 705,000 KELTIP Units to two officers of the Company. Due to the Company’s desire to preserve its limited current cash reserves for funding expenditures related to its portfolio of exploration projects, the Company determined it no longer had the current intent to settle any of its outstanding KELTIP Units in cash. The Company now intends to settle all of the KELTIP Units, including those previously issued, in common stock of the Company, an option that the Board of Directors holds in its sole discretion so long as sufficient shares remain available under the Equity Plan. As a result, the Company recorded approximately $254,000 of compensation expense, included in “Stock based compensation” in the Consolidated Statement of Operations for the KELTIP Units awarded on February 26, 2019 with a similar amount recorded as “Additional Paid-in Capital” in the Consolidated Statements of Changes in Equity. The Company has treated the previously awarded KELTIP Units as effectively modified at February 26, 2019. The Company marked-to-market the prior KELTIP Units as of that date and recorded approximately $227,000 of additional compensation expense, included in “Stock based compensation” in the Consolidated Statement of Operations and recorded approximately $583,000 as “Additional Paid-in Capital” in the Consolidated Statements of Changes in Equity, an amount representing the sum of the compensation expense recorded on February 26, 2019 and the liability for the KELTIP Units recorded at December 31, 2018. All KELTIP Units are recorded in equity at December 31, 2020 and 2019. There were 3,725,000 and 2,325,000 KELTIP Units outstanding at December 31, 2020 and December 31, 2019, respectively. Common stock warrants The following table summarizes the status of the Company’s common stock warrants at December 31, 2020 and December 31, 2019, and the changes during the years then ended: The Year Ended December 31, 2020 2019 Weighted Weighted Number of Average Exercise Number of Average Exercise Underlying Price Per Underlying Price Per Common Stock Warrants Shares Share Shares Share Outstanding at December 31, 2019 14,653,846 $ 0.39 11,517,696 $ 0.81 Granted during the period: Series A warrants 7,500,000 0.30 8,653,846 0.35 Series B warrants 3,750,000 0.30 — Dilution adjustment — — 168,669 0.80 Expired during period — — (5,686,365) 0.80 Exchanged during the period: May 2016 warrants — — (4,500,000) 0.75 Series B warrants — — 4,500,000 0.35 Exercised during period (8,500,000) 0.30 — — Outstanding December 31, 2020 17,403,846 $ 0.38 14,653,846 $ 0.39 The warrants relate to prior and current registered offerings and private placements of the Company’s stock. As discussed above under “Equity – 2020 offering and private placement”, on April 20, 2020, the Company entered into a securities purchase agreement with certain institutional investors providing for the issuance and sale of 15,000,000 shares of the Company’s common stock and in a concurrent private placement transaction, the issuance of an aggregate of 11,250,000 warrants, ultimately consisting of 7,500,000 series A warrants and 3,750,000 series B warrants, to purchase up to 11,250,000 shares of our common stock. During the fourth quarter 2020, 5,000,000 of the series A warrants and 3,500,000 of the series B warrants were exercised at a price of $0.30 per share resulting in proceeds of $2.6 million. The warrant exercise is reflected in the accompanying “Consolidated Statements of Changes in Equity”. In September 2014, the Company closed on a registered public offering and concurrent private placement with The Sentient Group (“Sentient”) in which it sold units, consisting of one share of common stock and a five-year warrant to acquire one half of a share of common stock at an exercise price of $1.21 per share. A total of 4,746,000 warrant shares were issued that became exercisable on March 11, 2015. Pursuant to the anti-dilution clauses in the 2014 warrant agreements, the exercise price of the warrants has been adjusted downward as a result of the subsequent issuance of the Company’s common stock in separate transactions, including the conversion of the Senior Secured Convertible Note which the Company entered into in October 2015 to borrow $5.0 million from Sentient, the Company’s largest stockholder, the May 2016 Offering and private placement, the ATM Program, the issuance of shares to Hecla in August 2017, the Registered Purchase Agreement with LPC and LPC share sales (discussed above) and the July 17, 2019 offering and private placement transaction. Prior to their expiration on September 10, 2019, the number of shares of common stock issuable upon exercise of the September 2014 warrants increased from the original 4,746,000 shares to 5,686,365 shares (940,365 share increase) and the exercise price had been reduced from the original $1.21 per share to $0.80 per share. The 5,686,365 warrants expired on September 10, 2019, five years from the original date of issuance. In May 2016, the Company issued 8.0 million registered shares of common stock at a purchase price of $0.50 per share in a registered direct offering (the “Offering”) resulting in gross proceeds of $4.0 million. In connection with the Offering, each investor received an unregistered warrant to purchase three ‐ quarters of a share of common stock for each share of common stock purchased. The resulting 6,000,000 warrant shares have an exercise price of $0.75 per share, became exercisable on November 7, 2016 and will expire on November 6, 2021, five years from the initial exercise date. In connection with the July 2019 registered direct offering discussed above, the Company agreed to exchange, on a one-for-one basis, 4,500,000 of the May 2016 warrants for Series B warrants to purchase 4,500,000 shares of common stock at an exercise price of $0.35 per share . Each Series B warrant is exercisable six months from the date of issuance and has a term expiring in May 2022. As discussed above, on July 17, 2019, the Company issued 8,653,846 registered shares of common stock in a registered direct offering. In a concurrent private placement transaction, each investor received a Series A warrant to purchase a share of common stock for each share of common stock purchased. Each Series A warrant is exercisable six months from the date of issuance and has a term expiring in January 2025. All outstanding warrants are recorded in equity at December 31, 2020 and December 31, 2019. |
Revenue, Deferred Revenue and R
Revenue, Deferred Revenue and Related Costs | 12 Months Ended |
Dec. 31, 2020 | |
Revenue, Deferred Revenue and Related Costs | |
Revenue, Deferred Revenue and Related Costs | 17. For the year ended December 31, 2020 the Company recorded revenue of approximately $5.6 million and related costs of approximately $2.0 million associated with the lease of the Velardeña Properties oxide plant. The Company recognizes oxide plant lease fees and reimbursements for labor, utility and other costs as “ Revenue: Oxide plant lease ” in the Consolidated Statements of Operations following the guidance of ASC 842. ASC 842 supports recording as gross revenue the reimbursement of expenses incurred directly by the Company in performing its obligations under the lease in situations where the entity has control over the specific goods or services transferred to a customer as a principal versus as an agent. The actual costs incurred for reimbursed direct labor and utility costs are reported as “ Oxide plant lease costs ” in the Consolidated Statements of Operations. The Company recognizes lease fees during the period the fees are earned per the terms of the lease. The oxide plant lease revenue includes a minimum fixed fee of $125,000 per month that is not dependent on tonnes processed. The monthly fixed fee remains payable for as long as the lease is in effect. On August 2, 2017, the Company granted Hecla an option to extend the Hecla Lease for an additional period of up to two years ending no later than December 31, 2020 (the “Extension Period”) in exchange for a $1.0 million upfront cash payment and the purchase of $1.0 million shares of the Company’s common stock, or approximately 1.8 million shares, issued at par at a price of $0.55 per share, based on an undiscounted 30-day volume weighted average stock price. The option and extension were memorialized in (i) an Option Agreement dated August 2, 2017 among the Company and Hecla Mining Company (the “Option Agreement”), and (ii) a Second Amendment to the Hecla Lease dated August 2, 2017 among Minera William S.A. de C.V., an indirect subsidiary of the Company, and Hecla (the “Second Amendment”). On October 1, 2018 Hecla exercised the option under the Second Amendment and extended the term of the Hecla Lease to December 31, 2020. All fixed fees and throughput related charges remained the same as under the original Hecla Lease. Similar volume limitations applied to any required tailings expansions, which Hecla was to fund, leaving unused at the end of the lease term an agreed amount of capacity in the expanded tailings facility. The Company recognized the $1.0 million of income from granting the option over the expected life of the lease through November 30, 2020 (the date of termination, as discussed below) on a straight-line basis, including such income in “ Revenue: Oxide plant lease ” in the Consolidated Statements of Operations and Comprehensive Loss. During each of the years ended December 31, 2020 and 2019, the company recognized approximately $0.3 million of amortized income related to the upfront cash payment, included in “ Revenue: Oxide plant lease ” in the Consolidated Statements of Operations and Comprehensive Loss. As of December 31, 2019, the unamortized portion of the lease option totaled approximately $0.3 million recorded as short term “ Deferred revenue ” on the Consolidated Balance Sheets. On December 2, 2019 the Company and Hecla entered into a Third Amendment to the Hecla Lease. Under the terms of the Third Amendment, the Company agreed to reduce the per tonne fee payable by Hecla for the duration of the lease term, commencing on January 1, 2020 from $22.00 per tonne to $11.00 per tonne. However, the per tonne fee reverted back to $22.00 per tonne for any month in which one of the following conditions occur: (1) the Comex daily silver spot closing average price for such month was equal to or greater than $20.00 per ounce, or (2) the mill head grade average from the metallurgical balance for such month was equal to or greater than 1,000 grams per ton equivalent silver head grade. If either of the conditions were met in any month, Hecla was required to pay the $22.00 fee on all amounts processed in the oxide plant during such month. The reduced fee only applied to the tonnage-based payments under the Hecla Lease; the monthly lease payment of $125,000 per month was not affected by the Third Amendment. Under the terms of the Hecla Lease, had the right to terminate the Hecla Lease at any time upon 120 days written notice. The Third Amendment extended the advance notice required to 150 days. The Company determined that the ability to receive the higher $22.00 per tonne fee, as described above, created a derivative asset. The Company treated the derivative asset as an upfront lease payment that was amortized over the remaining life of the lease and also recorded deferred revenue equal to the value of the derivative asset, as more fully described in Note 8. The amortization of the upfront lease payment and the increase in the derivative asset at December 31, 2019 were recorded as an increase of approximately $74,000 to “Revenue: Oxide plant lease” in the Consolidated Statements of Operations for the period ended December 31, 2019. For the year ended December 31, 2020 the amortization of the upfront lease payment and the decrease in the derivative asset (Note 8) were recorded as a decrease of approximately $74,000 to “Revenue: Oxide plant lease” in the Consolidated Statements of Operations. For the year ended December 31, 2019 the Company recorded revenue of approximately $7.7 million and related costs of approximately $2.4 million associated with the lease of the Velardeña Properties oxide plant. On July 7, 2020, the Company received notification from Hecla terminating the Hecla Lease pursuant to the Third Amendment, effective November 30, 2020. |
Interest and Other Expense, Net
Interest and Other Expense, Net | 12 Months Ended |
Dec. 31, 2020 | |
Interest and Other Expense, Net | |
Interest and Other Expense, Net | 18. For the year ended December 31, 2020 the Company recorded approximately $0.1 million of interest expense, primarily related to interest paid to Autlán and interest incurred related to the financing of certain insurance premiums (see Note 13) as well as to Sentient (see Note 23). For the year ended December 31, 2019 the Company recognized approximately $0.2 million other expense primarily related to the sale of Golden Tag shares held by the Company (Note 5). |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 19. Year Ended December 31, 2020 2019 (in thousands) Cash flows from operating activities: Net loss $ (9,086) $ (5,386) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 962 1,098 Accretion of asset retirement obligation 249 225 Decrease (increase) in derivative at fair value, net 254 (254) (Gain) loss on trading securities (20) 217 Asset write off 100 19 Gain on reduction of asset retirement obligation — (63) Gain on sale of assets (525) (3,144) Stock compensation 859 782 Changes in operating assets and liabilities from continuing operations: Decrease in lease receivable 376 33 Increase in prepaid expenses and other assets (506) (37) Increase in inventories (53) (2) Increase in other long term assets (341) (562) Decrease in reclamation liability (4) (5) (Decrease) increase in accounts payable and accrued liabilities (810) 514 (Decrease) increase in other current liabilities (1,156) 1,811 Increase (decrease) in deferred revenue 63 (128) Increase in other long term liabilities 154 484 Other — 3 Net cash used in operating activities $ (9,484) $ (4,395) The following table sets forth supplemental cash flow information and non-cash transactions: Year Ended December 31, 2020 2019 (in thousands) Supplemental disclosure: Interest paid $ 96 $ — Income taxes paid $ 284 $ — Supplemental disclosure of non-cash transactions: Deferred equity offering costs amortized $ 32 $ 58 Fair value of shares received for sale of mineral property (see Note 9) $ 59 $ — xxx |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 20. Leases and Purchase Commitments The Company has non-cancelable operating lease commitments as follows: 2021 2022 2023 2024 2025 Thereafter El Quevar mining concessions (estimated) $ 15 $ 15 $ 15 $ 15 $ 15 $ — Velardeña mining concessions (estimated) $ 23 $ 23 $ 23 $ 23 $ 23 $ — Velardeña ajido and surface rights (estimated) $ 46 $ 46 $ 46 $ 46 $ 46 $ — Rodeo mining concessions (estimated) $ 34 $ 34 $ 34 $ 34 $ 34 $ — Rodeo ajido and surface rights (estimated) $ 96 $ 96 $ 96 $ 96 $ 96 $ — Office space $ 166 $ 158 $ 151 $ 110 $ 9 $ — The Company is required to make payments to the Argentine government to maintain its rights to the El Quevar mining concessions. The Company has made such payments totaling approximately $22,000 and $36,000 for the years ended December 31, 2020 and 2019, respectively. The Company is required to pay concession holding fees to the Mexican government to maintain its rights to the Velardeña Properties and Rodeo property mining concessions. During the years ended December 31, 2020 and 2019 the Company made such payments totaling approximately $52,000 and $110,000 respectively. Additionally, during the years ended December 31, 2020 and 2019, the Company made annual payments to local ejidos and property owners under its surface rights agreements for the Velardeña Properties and Rodeo property of approximately $131,000 and $58,000 respectively. The Company has office leases for its corporate headquarters in Golden, Colorado, as well as for its Velardeña Properties offices in Mexico, and exploration offices in Mexico and Argentina. The lease for the corporate headquarters office space was renegotiated and extended during the first quarter 2019 and now expires in January 2025. The new lease reflects an approximately 45% reduction in space and an approximately 45% reduction in cost that began on April 1, 2019. Payments associated with the corporate headquarters lease were recorded to rent expense by the Company in the amounts of $99,000 and $183,000 for the years ended December 31, 2020 and 2019, respectively. The lease for the Mexican offices was renegotiated and extended during the fourth quarter 2019 and now expires in October 2023. Payments associated with the Mexican office lease were recorded to rent expense by the Company in the amounts of $53,000 and $50,000 for the years ended December 31, 2020 and 2019, respectively. The lease for the Argentina office was renegotiated and extended during the fourth quarter 2019 and now expires in November 2022. Payments associated with the Argentina office lease were recorded to rent expense by the Company in the amounts of $9,000 and $8,000 for the years ended December 31, 2020 and 2019, respectively. The Company cannot currently estimate the life of the Velardeña Properties, the Rodeo property or the El Quevar project. The table above assumes that no annual maintenance payments will be made more than five years after December 31, 2020. If the Company continues mining and processing at the Rodeo property or evaluations of restart at the Velardeña Properties beyond five years, the Company expects that it would make annual concession and surface rights payments of approximately $69,000 per year for the life of the Velardeña mine and approximately $130,000 per year for the life of the Rodeo mine. If the Company continues to evaluate development opportunities at the El Quevar project, the Company expects that it would make annual maintenance payments of approximately $15,000 per year for the life of the El Quevar mine. Payments associated with other exploration concessions the Company owns are not included because the Company has not completed exploration work on these concessions. Exploration success is historically low and the Company has the right to terminate the payments and release the concessions at any time. Contingencies No loss contingencies were recorded at December 31, 2020 and December 31, 2019. |
Foreign Currency
Foreign Currency | 12 Months Ended |
Dec. 31, 2020 | |
Foreign Currency | |
Foreign Currency | 21. Foreign Currency The Company conducts exploration and mining activities primarily in Mexico and Argentina, and gains and losses on foreign currency transactions are related to those activities. The Company’s functional currency is the U.S. dollar but certain transactions are conducted in the local currencies resulting in foreign currency transaction gains or losses. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information | |
Segment Information | 22. The Company’s sole activity is the mining, construction and exploration of mineral properties containing precious metals. The Company’s reportable segments are based upon the Company’s revenue producing activities and cash consuming activities. The Company reports two segments, one for its Velardeña Properties in Mexico and the other comprised of non-revenue producing activities including exploration, construction and general and administrative activities. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The financial information relating to the Company’s segments is as follows: Exploration, El Quevar, Costs Depreciation, Velardeña and Applicable Depletion and Administrative Pre-Tax Capital The Year ended December 31, 2020 Revenue to Sales Amortization Expense (Income)/Loss Total Assets Expenditures (in thousands) Velardeña Properties $ 5,637 $ 1,988 $ 697 $ 1,913 $ (808) $ 4,175 $ 301 Corporate, Exploration & Other — — 265 8,473 9,846 14,131 169 $ 5,637 $ 1,988 $ 962 $ 10,386 $ 9,038 $ 18,306 $ 470 The Year ended December 31, 2019 Velardeña Properties $ 7,730 $ 2,377 $ 796 $ 2,538 $ (4,301) $ 8,069 $ 11 Corporate, Exploration & Other — — 302 8,993 9,652 5,288 27 $ 7,730 $ 2,377 $ 1,098 $ 11,531 $ 5,351 $ 13,357 $ 38 All of the revenue for the two years presented was from the Company's Velardeña Properties in Mexico (see Note 17) and was all attributable to the lease of the oxide plant. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | |
Related Party Transactions | 23. The following sets forth information regarding transactions between the Company (and its subsidiaries) and its officers, directors and significant stockholders. Debt – Related Party On March 30, 2020, in response to potential economic and market uncertainties caused by the COVID-19 pandemic, the Company entered into a Short-Term Loan Agreement (the “Loan Agreement”) with Sentient Global Resources Fund IV, L.P., a Cayman Islands exempted limited partnership (“Sentient Global”), pursuant to which Sentient granted to the Company an unsecured loan in an amount equal to $1,000,000 (the “Sentient Loan”). Sentient Global is a private equity fund, and together with certain other Sentient equity funds, is the Company’s largest stockholder, holding in the aggregate approximately 38% of the Company’s outstanding common stock at the date of the Loan Agreement. The Sentient Loan had an interest rate of 10% per annum and was due in full, together with accrued interest and any other amount outstanding under the Loan Agreement, on December 31, 2020. On August 12, 2020, the Company repaid the Sentient Loan in full in the amount of approximately $1,037,159 (including all accrued interest), with no prepayment penalty, and terminated, the Loan Agreement. Administrative Services: Beginning in August 2016, the Company began providing limited accounting and other administrative services to Minera Indé, an indirect subsidiary of Sentient. The services are provided locally in Mexico by the administrative staff at the Company’s Velardeña Properties. The Company charges Minera Indé $15,000 per month for the services, which provides reimbursement to the Company for its costs incurred plus a small profit margin. Amounts received under the arrangement reduce costs incurred for the care and maintenance of the Velardeña Properties and allows the Company to maintain a larger more experienced staff at the Velardeña Properties to support the oxide plant lease and potential future mining or processing activities. The Company’s Board of Directors and Audit Committee approved the agreement. For each of the years ended December 31, 2020 and 2019 the Company charged Minera Indé approximately $180,000 for services, offsetting costs that are recorded in “ Velardeña shutdown and care and maintenance ” in the Consolidated Statements of Operations and Comprehensive Loss. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events | 24. Exercise of Warrants Subsequent to December 31, 2020, 1,400,000 series A warrants, associated with the offering and private placement in April 2020, discussed in Note 16, were exercised at a price of $0.30 per share resulting in proceeds of $420,000. Also, subsequent to December 31, 2020, 1,500,000 series B warrants and 200,000 Series A warrants associated with the offering in May 2016, discussed in Note 16, were exercised at a price of $0.35 per share resulting in proceeds of $595,000. At the Market Offering Subsequent to December 31, 2020 the Company sold an aggregate of approximately 1,856,960 common shares under the ATM Program at an average price of $0.97 per common share for gross proceeds of approximately $1.8 million during the year-to-date period ended February 17, 2021. The Company paid a 2% cash commission on the gross proceeds in the amount of approximately $37,000 and incurred additional accounting, legal, and regulatory costs of approximately $6,000 (see Note 16). Commencement of Processing Material at Rodeo We began mining at the Rodeo project in late December 2020 and began processing mined material from the Rodeo project at our Velardeña oxide plant in January 2021. COVID-19 On March 11, 2020, the World Health Organization declared the outbreak of the respiratory disease caused by the new coronavirus as “pandemic”. As of the date of issuance of the condensed consolidated financial statements, the Company’s financial condition has not been significantly impacted, however, the Company continues to monitor the situation. No impairments were recorded as of the condensed consolidated balance sheet date, however, due to uncertainty surrounding the situation, management’s judgment regarding this could change in the future. In addition, while the Company’s results of operation, cash flows, and financial condition could be negatively impacted, the extent of the impact cannot be reasonably estimated at this time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Basis of accounting | The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of the Company’s consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineralized material and related future metals prices that are the basis for future cash flow estimates utilized in impairment calculations; depreciation, depletion and amortization calculations; environmental reclamation and closure obligations; valuation allowances for deferred tax assets and the fair value of financial instruments. The Company based its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates under different assumptions or conditions. |
Basis of consolidation | a. All of the Company’s consolidated subsidiaries are 100% owned and as such the Company does not have a noncontrolling interest in any of its subsidiaries. All intercompany transactions and balances have been eliminated at consolidation. |
Translation of foreign currencies | b. The Company’s revenue and external funding are primarily denominated in U.S. dollars. Additionally, substantially all of the Company’s significant expenditures are made with reference to U.S. dollars. Accordingly, the Company and its subsidiaries use the U.S. dollar as their functional and reporting currency. |
Cash and cash equivalents | c. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Inventories | d. Materials and supplies inventories are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. The Company routinely counts and evaluates its material and supplies to determine the existence of any obsolete stock that is subject to impairment. |
Mining properties, exploration and development costs | e. The Company expenses general prospecting costs and the costs of acquiring and exploring unevaluated mineral properties. When a mineral property is determined to have proven and probable reserves, subsequent development costs are capitalized to mineral properties. For acquired mineral properties with proven and probable reserves, the Company capitalizes acquisition costs and subsequent development costs. When mineral properties are developed and operations commence, capitalized costs are charged to operations using the units-of-production method over proven and probable reserves. Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized in the accompanying Consolidated Statements of Operations. As discussed in Note 1, the Company is considered an exploration stage company under the criteria set forth by the SEC since it has not yet demonstrated the existence of proven or probable reserves at any of the Company’s properties. As such, during the periods prior to November 2015 when the Company suspended mining and processing activities, the Company expensed costs as incurred related to extraction of mineralized material at the Velardeña Properties. On a quarterly basis the Company evaluates its exploration properties to determine if they meet the Company’s minimum requirements for continued evaluation. The rights to the properties that do not meet the minimum requirements are relinquished and the carrying values, if any, are written off and reflected in “Other operating income, net” on the accompanying Consolidated Statements of Operations and Comprehensive Loss. |
Property, plant and equipment and long lived asset impairment | f. Buildings are depreciated using the straight–line method over the estimated useful lives of 30 to 40 years or the life of the mine whichever is shorter. Mining equipment and machinery, excluding the plant, are depreciated using the straight-line method over useful lives of three to eight years or the lease period, whichever is shorter. Mineral properties and the plant are depreciated using units of production based on estimated mineralized material. Other furniture and equipment are depreciated using the straight-line method over estimated useful lives of three to five years. As discussed above, the Company does not have any properties with proven or probable reserves. Property, plant and equipment are recorded at cost and per the guidance of ASC 360 the Company assesses the recoverability of its property, plant and equipment, including goodwill, whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If the sum of estimated future net cash flows on an undiscounted basis is less than the carrying amount of the related asset, impairment is considered to exist. The related impairment loss is measured by comparing estimated future net cash flows on a discounted basis or by comparing other market indicators to the carrying amount of the asset. The Company evaluated its remaining long lived assets at December 31, 2020 and 2019, and determined that no impairment was required. |
Asset Retirement Obligations | g. The Company records asset retirement obligations (“ARO”) in accordance with ASC 410, “Asset Retirement and Environmental Obligations” (“ASC 410”), which establishes a uniform methodology for accounting for estimated reclamation and abandonment costs. According to ASC 410, the fair value of an ARO is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. An offsetting asset retirement cost (“ARC”) is capitalized as part of the carrying value of the assets with which it is associated, and depreciated over the useful life of the asset (see Note 12). The Company prepares estimates of the timing and amount of expected cash flows when an ARO is incurred. The fair value of the ARO is measured by discounting the expected cash flows using a discount rate that reflects the credit adjusted risk-free rate of interest. The Company records the fair value of an ARO when it is incurred and layer adjustments of the ARO are recorded as an adjustment to the corresponding ARC. The ARO is adjusted to reflect the passage of time (accretion cost) calculated by applying the discount rate implicit in the initial fair value measurement to the beginning-of-period carrying amount of the ARO. The Company records accretion costs to expense as incurred. |
Value Added Taxes | h. The Company pays value added tax (“VAT”) in Mexico as well as other countries, primarily related to exploration projects. The amounts are generally charged to expense as incurred because of the uncertainty of recoverability. |
Revenue Recognition | i. The Company recognizes oxide plant lease fees and reimbursements for labor, utility and other costs as " Revenue from Oxide plant lease " in the Consolidated Statements of Operations following the guidance of Topic Leases 842 (“ASC 842”). ASC 842 supports recording as gross revenue the reimbursement of expenses incurred directly by the Company in performing its obligations under the lease in situations where the entity has control over the specific goods or services transferred to a customer as a principal versus as an agent. The actual costs incurred for reimbursed direct labor and utility costs are reported as “ Oxide plant lease costs ” in the Consolidated Statements of Operations. The Company recognizes lease fees during the period the fees are earned per the terms of the lease (see Note 17). |
Stock compensation | j Stock based compensation costs are recognized per the guidance of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award (see Note 16). Stock grants are valued at their grant date at fair value which in the case of options requires the use of the Black-Scholes option pricing model. Per ASC 718 the grants may be classified as equity grants or liability grants depending on the terms of the grant. |
Leases | k. Effective January 1, 2019 the Company adopted ASU 2016-02 and ASU No. 2018-11, which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement (see Note 4). |
Net income (loss) per Share of Common Stock | l. Basic income (loss) per share is computed by dividing net income (loss) available to holders of the Company’s Common Stock by the weighted average number of shares of Common Stock outstanding for the period. Diluted income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock. At December 31, 2020 and 2019, all potentially dilutive shares were excluded from the computation of diluted earnings per share because to include them would have been anti-dilutive. |
Comprehensive Income (Loss) | m. Comprehensive income (loss) is defined as all changes in equity (deficit), exclusive of transactions with stockholders, such as capital investments. Comprehensive income (loss) includes net income (loss) and changes in certain assets and liabilities that are reported directly in equity. During the first quarter 2018 the Company adopted ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which amended its accounting treatment for the recognition, measurement, presentation and disclosure of certain financial assets. ASU 2016-01 requires equity investments that have a readily determinable fair value to be measured at fair value through net income. Previously, entities would recognize changes in fair value of available-for-sale equity securities in other comprehensive income and would recognize in net income impairment losses that were other-than-temporary. There will no longer be an available-for-sale classification (with changes in fair value reported in other comprehensive income) for equity securities with readily determinable fair values. |
Income Taxes | n. The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. The Company files United States and certain other foreign country income tax returns, and pays taxes reasonably determined to be due. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s income tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company classifies income tax related interest and penalties as income tax expense. |
Recently Adopted Standards | o. During the first quarter 2020 the Company adopted ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. As the Company’s principal credit risk is related to its Lease Receivables the adoption of this update did not result in a material impact on the Company’s consolidated financial position or results of operations. During the first quarter 2019 the Company adopted ASU 2016-02, “Leases” (“ASU 2016-02”) and ASU No. 2018-11 “Leases (Topic 842)” (“ASU 2018-11”), which require lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For a lessor, the accounting applied is largely unchanged from previous guidance. The Company currently leases administrative offices in the U.S. and in several foreign locations under lease agreements that typically exceed one year. The Company has elected the modified retrospective method of adopting ASU 2016-02 (see Note 4). |
Recently Issued Pronouncements | p. There were no new accounting pronouncements issued during 2020 that would affect the Company or have a material impact on its consolidated financial position or results of operations. |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents and Short-Term Investments | |
Schedule of short term-investments | Estimated Carrying December 31, 2020 Cost Fair Value Value (in thousands) Investments: Short-term: Trading securities $ 59 $ 79 $ 79 Total trading securities 59 79 79 Total short term $ 59 $ 79 $ 79 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses and Other Assets | |
Schedule of prepaid expenses and other current assets | December 31, December 31, 2020 2019 (in thousands) Prepaid insurance $ 571 $ 494 Recoupable deposits and other 559 175 $ 1,130 $ 669 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories, net | |
Schedule of inventories at the Velardena Properties | December 31, December 31, 2020 2019 (in thousands) Material and supplies $ 284 $ 231 $ 284 $ 231 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net | |
Schedule of components of property, plant and equipment | December 31, December 31, 2020 2019 (in thousands) Mineral properties $ 9,353 $ 9,353 Exploration properties 2,418 2,518 Royalty properties 200 200 Buildings 3,755 3,755 Mining equipment and machinery 16,135 16,049 Other furniture and equipment 890 884 Construction in progress 259 — Asset retirement cost 948 866 33,958 33,625 Less: Accumulated depreciation and amortization (28,438) (27,594) $ 5,520 $ 6,031 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Long-Term Assets | |
Schedule of Other long-term assets | December 31, December 31, 2020 2019 (in thousands) Deferred offering costs $ 479 $ 511 Right of use assets 993 620 $ 1,472 $ 1,131 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Other Accrued Liabilities | |
Schedule of accounts payable and other accrued liabilities | December 31, December 31, 2020 2019 (in thousands) Accounts payable and accruals $ 472 $ 710 Accrued employee compensation and benefits 846 724 Value added tax payable — 401 Income taxes payable — 292 $ 1,318 $ 2,127 |
Asset Retirement and Reclamat_2
Asset Retirement and Reclamation Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement and Reclamation Liabilities | |
Summary of activity in the Velardena Properties ARO | Year Ended December 31, 2020 2019 (in thousands) Beginning balance $ 2,825 $ 2,660 Changes in estimates, and other 82 (60) Accretion expense 249 225 Ending balance $ 3,156 $ 2,825 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities, Current | |
Schedule of other current liabilities | December 31, December 31, 2020 2019 (in thousands) Autlán refundable deposit $ — $ 1,251 Premium financing 390 455 Office lease liability 138 118 Mining equipment lease liability 139 — $ 667 $ 1,824 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities at fair value by respective level of the fair value hierarchy | Level 1 Level 2 Level 3 Total (in thousands) At December 31, 2020 Assets: Cash and cash equivalents $ 9,704 $ — $ — $ 9,704 Short-term investments 79 — — 79 $ 9,783 $ — $ — $ 9,783 At December 31, 2019 Assets: Cash and cash equivalents $ 4,593 $ — $ — $ 4,593 Derivative at fair value — — 254 254 $ 4,593 $ — $ 254 $ 4,847 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Schedule of the provision for income taxes | For the Year Ended December 31, 2020 2019 CURRENT TAXES: (in thousands) United States $ — $ — Other Countries 48 35 $ 48 $ 35 DEFERRED TAXES: United States $ — $ — Other Countries — — $ — $ — Total income tax provision $ 48 $ 35 |
Schedule of income (loss) from operations before income taxes by country | For the Year Ended December 31, 2020 2019 (in thousands) United States $ (9,056) $ (7,373) Other Countries 18 2,022 $ (9,038) $ (5,351) |
Summary of reconciliation of the provision for income taxes computed at the statutory rate to the provision for income taxes | For Year Ended December 31, 2020 2019 (in thousands) Tax expense (benefit) at U.S. rate of 21% $ (1,898) $ (1,124) Other adjustments: Rate differential of other jurisdictions 46 292 Effects of foreign earnings (1,021) (937) Change in valuation allowance 7,246 (78) Provision to tax return true-ups (478) (24) Exchange rate changes on deferred tax assets (4,050) 1,340 GILTI inclusion — 537 Inflation adjustment on net operating losses (547) (1,183) Expired net operating losses 753 1,138 Other (3) 74 Income tax provision $ 48 $ 35 |
Schedule of components of the deferred tax assets and deferred tax liabilities | For the year ended December 31, 2020 2019 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 119,109 $ 112,553 Stock-based compensation 747 671 Property, plant and equipment 3,287 2,940 Other 3,364 2,985 126,507 119,149 Less: Valuation allowance (125,528) (118,283) Total deferred tax assets 979 866 Deferred tax liabilities: Property, plant and equipment (778) (686) Other (201) (180) Total deferred tax liabilities (979) (866) Net deferred tax asset (liability) $ — $ — |
Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits | The Year Ended December 31, 2020 2019 (in thousands) Gross unrecognized tax benefits at beginning of period $ 269 $ 373 Increases for tax positions taken during prior years — — Decreases relating to settlements with taxing authorities — — Reductions due to lapse of statute of limitations (20) (104) Gross unrecognized tax benefits at end of period $ 249 $ 269 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity | |
Schedule of status of the restricted stock grants issued under the Equity Plan | The Year Ended December 31, 2020 2019 Weighted Weighted Average Grant Average Date Fair Grant Date Number of Value Per Number of Fair Value Restricted Stock Grants Shares Share Shares Per Share Outstanding at December 31, 2019 318,003 $ 0.30 340,001 $ 0.45 Granted during the period 300,000 0.42 312,000 0.26 Restrictions lifted during the period (394,001) 0.36 (333,998) 0.41 Forfeited during the period — — — — Outstanding December 31, 2020 224,002 $ 0.36 318,003 $ 0.30 |
Schedule of status of the stock option grants issued under the Equity Plan | The Year Ended December 31, 2020 2019 Weighted Weighted Average Average Exercise Exercise Number of Price Per Number of Price Per Equity Plan Options Shares Share Shares Share Outstanding at December 31, 2019 30,310 $ 8.06 30,310 $ 8.06 Granted during the period — — — — Forfeited or expired during period (30,310) $ 8.06 — — Exercised during period — — — — Outstanding December 31, 2020 — $ — 30,310 $ 8.06 Exercisable at end of period — $ — 30,310 $ 8.06 Granted and vested — $ — 30,310 $ 8.06 |
Schedule of restricted stock units | The Year Ended December 31, 2020 2019 Weighted Weighted Average Grant Average Date Fair Grant Date Number of Value Per Number of Fair Value Restricted Stock Units Shares Share Shares Per Share Outstanding at December 31, 2019 2,830,038 $ 0.78 2,230,038 $ 0.93 Granted during the period 780,000 0.40 600,000 0.24 Restrictions lifted during the period — — — — Forfeited during the period — — — — Outstanding December 31, 2020 3,610,038 $ 0.70 2,830,038 $ 0.78 |
Summary of the status of the Company's common stock warrants | The Year Ended December 31, 2020 2019 Weighted Weighted Number of Average Exercise Number of Average Exercise Underlying Price Per Underlying Price Per Common Stock Warrants Shares Share Shares Share Outstanding at December 31, 2019 14,653,846 $ 0.39 11,517,696 $ 0.81 Granted during the period: Series A warrants 7,500,000 0.30 8,653,846 0.35 Series B warrants 3,750,000 0.30 — Dilution adjustment — — 168,669 0.80 Expired during period — — (5,686,365) 0.80 Exchanged during the period: May 2016 warrants — — (4,500,000) 0.75 Series B warrants — — 4,500,000 0.35 Exercised during period (8,500,000) 0.30 — — Outstanding December 31, 2020 17,403,846 $ 0.38 14,653,846 $ 0.39 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information | |
Schedule of reconciliation of net loss for the period to cash used in operations | Year Ended December 31, 2020 2019 (in thousands) Cash flows from operating activities: Net loss $ (9,086) $ (5,386) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 962 1,098 Accretion of asset retirement obligation 249 225 Decrease (increase) in derivative at fair value, net 254 (254) (Gain) loss on trading securities (20) 217 Asset write off 100 19 Gain on reduction of asset retirement obligation — (63) Gain on sale of assets (525) (3,144) Stock compensation 859 782 Changes in operating assets and liabilities from continuing operations: Decrease in lease receivable 376 33 Increase in prepaid expenses and other assets (506) (37) Increase in inventories (53) (2) Increase in other long term assets (341) (562) Decrease in reclamation liability (4) (5) (Decrease) increase in accounts payable and accrued liabilities (810) 514 (Decrease) increase in other current liabilities (1,156) 1,811 Increase (decrease) in deferred revenue 63 (128) Increase in other long term liabilities 154 484 Other — 3 Net cash used in operating activities $ (9,484) $ (4,395) Year Ended December 31, 2020 2019 (in thousands) Supplemental disclosure: Interest paid $ 96 $ — Income taxes paid $ 284 $ — Supplemental disclosure of non-cash transactions: Deferred equity offering costs amortized $ 32 $ 58 Fair value of shares received for sale of mineral property (see Note 9) $ 59 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Schedule of non-cancellable operating lease commitments | 2021 2022 2023 2024 2025 Thereafter El Quevar mining concessions (estimated) $ 15 $ 15 $ 15 $ 15 $ 15 $ — Velardeña mining concessions (estimated) $ 23 $ 23 $ 23 $ 23 $ 23 $ — Velardeña ajido and surface rights (estimated) $ 46 $ 46 $ 46 $ 46 $ 46 $ — Rodeo mining concessions (estimated) $ 34 $ 34 $ 34 $ 34 $ 34 $ — Rodeo ajido and surface rights (estimated) $ 96 $ 96 $ 96 $ 96 $ 96 $ — Office space $ 166 $ 158 $ 151 $ 110 $ 9 $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information | |
Schedule of financial information relating to discontinued operations and continuing operations | Exploration, El Quevar, Costs Depreciation, Velardeña and Applicable Depletion and Administrative Pre-Tax Capital The Year ended December 31, 2020 Revenue to Sales Amortization Expense (Income)/Loss Total Assets Expenditures (in thousands) Velardeña Properties $ 5,637 $ 1,988 $ 697 $ 1,913 $ (808) $ 4,175 $ 301 Corporate, Exploration & Other — — 265 8,473 9,846 14,131 169 $ 5,637 $ 1,988 $ 962 $ 10,386 $ 9,038 $ 18,306 $ 470 The Year ended December 31, 2019 Velardeña Properties $ 7,730 $ 2,377 $ 796 $ 2,538 $ (4,301) $ 8,069 $ 11 Corporate, Exploration & Other — — 302 8,993 9,652 5,288 27 $ 7,730 $ 2,377 $ 1,098 $ 11,531 $ 5,351 $ 13,357 $ 38 |
Nature of Operations (Details)
Nature of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Apr. 09, 2020 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Shutdown and care and maintenance costs | $ 1,163 | $ 1,797 | |
Rodeo Property | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Investment ownership percentage | 100.00% | ||
Shutdown and care and maintenance costs | $ 200 | ||
Velardena Properties | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Investment ownership percentage | 100.00% | ||
Shutdown and care and maintenance costs | $ 1,200 | $ 1,700 | |
El Quevar Project | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
Barrick Earn-In Agreement | El Quevar Project | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Investment ownership percentage | 70.00% |
Correction of Immaterial Erro_2
Correction of Immaterial Error - Income Taxes (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Jan. 01, 2018 |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Accumulated deficit | $ 525,866,000 | $ 516,780,000 | ||
Default In Tax Payments | Cumulative Effect Adjustment | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Accumulated deficit | $ 113,000 | $ 154,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Nature of Operations | ||
Ownership percentage of subsidiaries | 100.00% | |
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 0 |
Buildings | Minimum | ||
Other Current Liabilities | ||
Useful life | 30 years | |
Buildings | Maximum | ||
Other Current Liabilities | ||
Useful life | 40 years | |
Mining equipment and machinery | Minimum | ||
Other Current Liabilities | ||
Useful life | 3 years | |
Mining equipment and machinery | Maximum | ||
Other Current Liabilities | ||
Useful life | 8 years | |
Other furniture and equipment | Minimum | ||
Other Current Liabilities | ||
Useful life | 3 years | |
Other furniture and equipment | Maximum | ||
Other Current Liabilities | ||
Useful life | 5 years |
Change in Accounting Principle
Change in Accounting Principle - Leases (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Change in Accounting Principle | ||
Accumulated Deficit | $ (525,866,000) | $ (516,780,000) |
ASU 2017-11 Earnings Per Share | ||
Change in Accounting Principle | ||
Accumulated Deficit | $ (3,000) |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-term Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial institutions minimum net worth | $ 1,000,000,000 | ||
Trading securities, cost | 59,000 | ||
Total short term, cost | 59,000 | ||
Total short term | $ 79,000 | ||
Golden Tag | |||
Investment shares held (in shares) | 7,500,000 | 0 | |
Net proceeds from the sale of shares | $ 113,000 | ||
Loss on sale of shares | $ 217,000 | ||
Trading securities | |||
Trading securities, cost | $ 59,000 | ||
Sale of Santa Maria Property | Options Agreement | Fabled Copper Corp. | |||
Consideration Received in Shares | shares | 1,000,000 | ||
Percentage of interest claims | 100.00% | ||
Estimated Fair Value. | |||
Trading securities | $ 79,000 | ||
Total short term | 79,000 | ||
Estimated Fair Value. | Trading securities | |||
Trading securities | 79,000 | ||
Carrying Value. | |||
Trading securities | 79,000 | ||
Total short term | 79,000 | ||
Carrying Value. | Trading securities | |||
Trading securities | $ 79,000 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expenses and Other Assets | ||
Prepaid insurance | $ 571 | $ 494 |
Recoupable deposits and other | 559 | 175 |
Prepaid expenses and other assets | 1,130 | $ 669 |
Receivables for Reimbursement of Costs | $ 200 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Material and supplies | $ 284 | $ 231 |
Inventories, net | 284 | 231 |
Velardena Properties | ||
Obsolescence allowance | $ 200 | $ 200 |
Derivative at Fair Value (Detai
Derivative at Fair Value (Details) | Dec. 03, 2019$ / item | Dec. 02, 2019USD ($)$ / item | Dec. 31, 2020USD ($)$ / item | Dec. 31, 2019USD ($) |
Variable fee (per tonne) | $ / item | 11 | 22 | 22 | |
Derivative at fair value (Note 8) | $ 254,000 | |||
Increase (decrease) in derivatives | $ (254,000) | 254,000 | ||
Plant Lease | ||||
Deferred Revenue | 180,000 | 15,000 | ||
Increase (decrease) in derivatives | $ (254,000) | $ 59,000 | ||
Hecla | ||||
Derivative Asset | $ 194,000 | |||
Deferred Revenue | $ 194,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 33,958 | $ 33,625 |
Less: Accumulated depreciation and amortization | (28,438) | (27,594) |
Property, plant and equipment, net | 5,520 | 6,031 |
Mineral properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 9,353 | 9,353 |
Exploration properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 2,418 | 2,518 |
Royalty properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 200 | 200 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 3,755 | 3,755 |
Mining equipment and machinery | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 16,135 | 16,049 |
Other furniture and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 890 | 884 |
Construction in progress | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 259 | |
Asset retirement cost | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 948 | $ 866 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Disposals (Details) | Dec. 04, 2020USD ($)shares | Jul. 20, 2020 | Dec. 18, 2019USD ($)item | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) |
Property, plant and equipment | |||||
Property, plant and equipment, net (Note 9) | $ 5,520,000 | $ 6,031,000 | |||
Gain on sale of assets | 525,000 | 3,144,000 | |||
Other operating (expense) income, net | 7,000 | 3,238,000 | |||
Sale of Santa Maria Property | Options Agreement | |||||
Property, plant and equipment | |||||
Gain (Loss) on sale of properties | 23,000 | ||||
Deferred revenue | $ 535,000 | ||||
Sale of Santa Maria Property | Fabled Copper Corp. | Options Agreement | |||||
Property, plant and equipment | |||||
Percentage of interest claims | 100.00% | ||||
Consideration Received in Shares | shares | shares | 1,000,000 | ||||
Sale of Santa Maria Property | Fabled Copper Corp. | Binding Letter of Intent Agreement | |||||
Property, plant and equipment | |||||
Percentage of interest claims | 100.00% | ||||
Cash consideration received | $ 500,000 | ||||
Consideration Received in Shares | shares | shares | 1,000,000 | ||||
First year anniversary consideration | $ 1,500,000 | ||||
Second year anniversary consideration | $ 2,000,000 | ||||
Percentage of royalty return | 1.00% | ||||
Sale, not discontinued operations | Penoles | |||||
Property, plant and equipment | |||||
Proceeds from sale of properties | $ 3,000,000 | ||||
Number of mining concessions | item | 4 | ||||
Gain on sale of assets | $ 3,000,000 | ||||
Sale, not discontinued operations | Fabled Copper Corp. | Binding Letter of Intent Agreement | |||||
Property, plant and equipment | |||||
Consideration Received in Shares | shares | shares | 1,000,000 | ||||
Velardena Properties | |||||
Property, plant and equipment | |||||
Investment ownership percentage | 100.00% |
Other Long-Term Assets - Schedu
Other Long-Term Assets - Schedule of other long term assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Long-Term Assets | ||
Deferred offering costs | $ 479 | $ 511 |
Right of use assets | 993 | 620 |
Other long-term assets | $ 1,472 | $ 1,131 |
Other Long- Term Assets (Detail
Other Long- Term Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | Jun. 30, 2019 | Jun. 01, 2019 |
Change in Accounting Principle | |||||
Operating lease liability statement of financial position (Extensible list) | us-gaap:OtherLiabilitiesNoncurrent | ||||
Office Leases | |||||
Change in Accounting Principle | |||||
Right of use assets | $ 500,000 | ||||
Lease liability | 300,000 | ||||
Mining Equipment Lease Property | |||||
Change in Accounting Principle | |||||
Right of use assets | 500,000 | ||||
Lease liability | $ 300,000 | ||||
Rodeo Property | |||||
Change in Accounting Principle | |||||
Term of operating lease | 27 months | ||||
Right of use assets | $ 420,000 | ||||
Lease liability | $ 420,000 | ||||
Future lease payments discount rate | 7.00% | ||||
COLORADO | |||||
Change in Accounting Principle | |||||
Term of operating lease | 5 years 8 months | ||||
Right of use assets | $ 465,000 | ||||
Lease liability | $ 450,000 | ||||
Future lease payments discount rate | 9.50% | ||||
Mexico and Argentina | |||||
Change in Accounting Principle | |||||
Right of use assets | $ 45,000 | ||||
Lease liability | $ 45,000 | ||||
Mexico | |||||
Change in Accounting Principle | |||||
Term of operating lease | 4 years | ||||
Right of use assets | $ 174,000 | ||||
Lease liability | $ 174,000 | ||||
Argentina | |||||
Change in Accounting Principle | |||||
Term of operating lease | 2 years | ||||
Right of use assets | $ 18,000 | ||||
Lease liability | $ 18,000 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts payable and accruals | $ 472 | $ 710 |
Accrued employee compensation and benefits | 846 | 724 |
Value added tax payable | 401 | |
Income taxes payable | 292 | |
Accounts payable and other accrued liabilities | 1,318 | 2,127 |
Accrued vacation | 300 | 200 |
Withholding taxes and benefits payable | 500 | 500 |
VAT receivables offset against VAT payable | 73 | |
Velardena Properties | ||
Accounts payable and accruals | 300 | 300 |
Accrued employee compensation and benefits | 600 | 500 |
Corporate, Exploration and Other | ||
Accounts payable and accruals | $ 200 | $ 300 |
Asset Retirement and Reclamat_3
Asset Retirement and Reclamation Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2012 | Mar. 31, 2012 |
Asset retirement and reclamation liabilities (Note 12) | $ 2,839 | $ 3,166 | $ 2,839 | ||
Summary of activity in the Velardena Operations ARO | |||||
ARO, Beginning balance | 2,839 | ||||
Accretion expense | 249 | 225 | |||
ARO, Ending balance | 2,839 | 3,166 | 2,839 | ||
Velardena Properties | |||||
Asset retirement and reclamation liabilities (Note 12) | 2,825 | 3,156 | 2,825 | $ 1,900 | $ 3,500 |
Summary of activity in the Velardena Operations ARO | |||||
ARO, Beginning balance | 2,825 | 2,660 | |||
Changes in estimates, and other | 200 | 82 | (60) | ||
Accretion expense | 249 | 225 | |||
ARO, Ending balance | $ 2,825 | $ 3,156 | $ 2,825 |
Other Liabilities (Details)
Other Liabilities (Details) | Apr. 07, 2020USD ($) | Dec. 09, 2019USD ($) | Sep. 11, 2019USD ($) | Dec. 31, 2020USD ($)payment | Aug. 31, 2020USD ($) | Jun. 30, 2020USD ($)payment | Dec. 31, 2019USD ($)installment | Jun. 30, 2019USD ($)installment | Dec. 31, 2020USD ($) |
Other Current Liabilities | |||||||||
Autlan refundable deposit | $ 1,500,000 | $ 1,251,000 | |||||||
Premium financing | $ 390,000 | 455,000 | $ 390,000 | ||||||
Other current liabilities | 667,000 | 1,824,000 | $ 667,000 | ||||||
Repayments of deposits | $ 81,000 | $ 257,000 | |||||||
Refundable Deposit Interest Rate | 12.00% | 11.00% | 11.00% | ||||||
Repayment of refundable deposit | $ 1,500,000 | ||||||||
Interest paid on refundable deposit | 66,000 | ||||||||
Interest expense on refundable deposit | $ 55,000 | ||||||||
Other long term liabilities | 648,000 | 494,000 | $ 648,000 | ||||||
General Liability | |||||||||
Other Current Liabilities | |||||||||
Premium financing | 23,000 | 51,000 | 23,000 | ||||||
Premium amount | $ 110,000 | $ 151,000 | |||||||
Number of payment | 12 | 12 | |||||||
Premium interest rate | 5.74% | 5.74% | |||||||
Directors and Officers Liability Insurance | |||||||||
Other Current Liabilities | |||||||||
Premium financing | $ 363,000 | 404,000 | 363,000 | ||||||
Premium amount | $ 482,000 | ||||||||
Number of payment | 8 | 12 | |||||||
Premium interest rate | 5.74% | 5.74% | |||||||
Insurance premium payable | $ 406,000 | 406,000 | |||||||
Office Leases | |||||||||
Other Current Liabilities | |||||||||
Office lease liability | 138,000 | $ 118,000 | 138,000 | ||||||
Operating lease liability | 300,000 | 300,000 | |||||||
Mining Equipment Lease Property | |||||||||
Other Current Liabilities | |||||||||
Office lease liability | 139,000 | 139,000 | |||||||
Operating lease liability | $ 300,000 | $ 300,000 |
Fair value measurements (Detail
Fair value measurements (Details) $ / shares in Units, $ in Thousands | Dec. 04, 2020shares | Dec. 31, 2020USD ($)g / T$ / shares | Dec. 31, 2019USD ($) |
Fair value measurements | |||
Derivative at fair value (Note 8) | $ 254 | ||
Silver Price Per Ounce | $ / shares | $ 20 | ||
Threshold Grams of Silver Per Tonne | g / T | 1,000 | ||
Fair value Assumptions | |||
Fair value adjustments to long lived assets | $ 0 | 0 | |
Sale, not discontinued operations | Fabled Copper Corp. | Binding Letter of Intent Agreement | |||
Fair value measurements | |||
Consideration Received in Shares | shares | shares | 1,000,000 | ||
Recurring | |||
Fair value measurements | |||
Cash and cash equivalents | 9,704 | 4,593 | |
Derivative at fair value (Note 8) | 254 | ||
Short-term investments | 79 | ||
Assets | 9,783 | 4,847 | |
Recurring | Level 1 | |||
Fair value measurements | |||
Cash and cash equivalents | 9,704 | 4,593 | |
Short-term investments | 79 | ||
Assets | 9,783 | 4,593 | |
Recurring | Level 3 | |||
Fair value measurements | |||
Derivative at fair value (Note 8) | 254 | ||
Assets | 254 | ||
Non-recurring | |||
Fair value Assumptions | |||
Fair value measurements | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CURRENT TAXES: | ||
Other Countries | $ 48 | $ 35 |
Total current taxes | 48 | 35 |
Income tax provision | $ 48 | $ 35 |
Income Taxes - Tax Expense (Det
Income Taxes - Tax Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income (loss) from continuing operations before income taxes | ||
United States | $ (9,056,000) | $ (7,373,000) |
Other Countries | 18,000 | 2,022,000 |
Loss from operations before income taxes | (9,038,000) | (5,351,000) |
Net deferred tax asset (liability) | 0 | 0 |
Reconciliation of the provision for income taxes computed at the statutory rate to the provision for income taxes | ||
Tax expense (benefit) at US rate of 21% | (1,898,000) | (1,124,000) |
Other adjustments: | ||
Rate differential of other jurisdictions | 46,000 | 292,000 |
Effects of foreign earnings | (1,021,000) | (937,000) |
Change in valuation allowance | 7,246,000 | (78,000) |
Provision to tax return true-ups | (478,000) | (24,000) |
Exchange rate changes on deferred tax assets | (4,050,000) | 1,340,000 |
GILTI inclusion | 537,000 | |
Inflation adjustment on net operating losses | (547,000) | (1,183,000) |
Expired net operating losses | 753,000 | 1,138,000 |
Other | (3,000) | 74,000 |
Income tax provision | $ 48,000 | $ 35,000 |
US rate (as a percent) | 21.00% | 21.00% |
Income Taxes - Deferred (Detail
Income Taxes - Deferred (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 119,109,000 | $ 112,553,000 |
Stock-based compensation | 747,000 | 671,000 |
Property, plant and equipment | 3,287,000 | 2,940,000 |
Other | 3,364,000 | 2,985,000 |
Deferred tax assets, gross | 126,507,000 | 119,149,000 |
Less: Valuation allowance | (125,528,000) | (118,283,000) |
Total deferred tax assets | 979,000 | 866,000 |
Deferred tax liabilities: | ||
Property, plant and equipment | (778,000) | (686,000) |
Other | (201,000) | (180,000) |
Total deferred tax liabilities | (979,000) | (866,000) |
Net deferred tax asset (liability) | $ 0 | $ 0 |
Corporate tax rate | 21.00% | 21.00% |
GILTI income | $ 2,600,000 | $ 0 |
Income Taxes - NOL Carryforward
Income Taxes - NOL Carryforwards (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 463,500,000 | |
Valuation allowance offsetting the deferred tax assets | $ 125,528,000 | $ 118,283,000 |
Amount of tax with-held | $ 292,000 | |
Percentage of tax withholding | 5.00% | |
Interest on tax | $ 23,000 | |
SPAIN | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 98,200,000 | |
Other non-U.S. Countries | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 194,000,000 | |
US | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 82,600,000 | |
Velardena Properties | Mexico | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 75,700,000 | |
Other Mexico activities | Mexico | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 13,000,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | ||
Unrecognized tax benefits including estimated penalties and interest | $ 0 | $ 0 |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ||
Gross unrecognized tax benefits at beginning of period | 269,000 | 373,000 |
Reductions due to lapse of statute of limitations | (20,000) | (104,000) |
Gross unrecognized tax benefits at end of period | 249,000 | 269,000 |
Interest and penalties recognized in the statement of operations | 0 | 0 |
Interest and penalties accrued recognized in the statement of financial position | $ 0 | $ 0 |
Equity - Issue and Conversion (
Equity - Issue and Conversion (Details) - USD ($) | Feb. 15, 2021 | Jul. 21, 2020 | Apr. 22, 2020 | Apr. 20, 2020 | Apr. 09, 2020 | Jul. 17, 2019 | May 09, 2018 | Jul. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 2021 | Jul. 19, 2019 |
Proceeds from issuance of common stock, net of issuance costs | $ 14,599,000 | $ 2,476,000 | ||||||||||||
Warrants Series A and B | ||||||||||||||
Exercise price | $ 0.24 | |||||||||||||
Warrants issued | $ 1,900,000 | |||||||||||||
Expected volatility (as a percent) | 95.00% | |||||||||||||
Risk-free rate (as a percent) | 0.41% | |||||||||||||
Series A Warrants | ||||||||||||||
Warrants Exercise Period | 6 months | 6 months | ||||||||||||
Exercise price | $ 0.33 | |||||||||||||
Warrants issued | $ 2,100,000 | |||||||||||||
Expected volatility (as a percent) | 95.00% | |||||||||||||
Risk-free rate (as a percent) | 1.90% | |||||||||||||
Expiration term of warrant | 5 years | |||||||||||||
Series B Warrants | ||||||||||||||
Common shares issuable upon exercise | 4,500,000 | 4,500,000 | ||||||||||||
Exercise price | $ 0.33 | $ 0.35 | $ 0.35 | |||||||||||
Expected volatility (as a percent) | 88.00% | |||||||||||||
Risk-free rate (as a percent) | 1.90% | |||||||||||||
Incremental fair value of warrants | $ 300,000 | |||||||||||||
Subsequent Event | Series A Warrants | ||||||||||||||
Exercise price | $ 0.30 | |||||||||||||
Subsequent Event | Series B Warrants | ||||||||||||||
Exercise price | $ 0.35 | |||||||||||||
Private Placement | ||||||||||||||
Total cost of offering | $ 334,000 | |||||||||||||
Placement agent fee (as a percent) | 6.00% | |||||||||||||
Private Placement | Warrants Series A and B | ||||||||||||||
Share Price | $ 0.30 | |||||||||||||
Aggregate gross proceeds of warrants | $ 3,000,000 | |||||||||||||
Private Placement | Series A Warrants | ||||||||||||||
Number of common shares which can be purchased with each warrant | 1 | |||||||||||||
ATM Agreement | ||||||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 223,000 | $ 11,000 | ||||||||||||
Common stock issued (in shares) | 823,452 | 33,995 | ||||||||||||
Aggregate value of securities allowed under agreement | $ 5,000,000 | |||||||||||||
Sale price (in dollars per shares) | $ 0.28 | $ 0.28 | $ 0.34 | |||||||||||
Amortization of deferred cost | $ 8,000 | $ 1,000 | ||||||||||||
Unamortized deferred cost | $ 127,000 | $ 127,000 | 135,000 | |||||||||||
Aggregate securities allowed under agreement (in shares) | 10,000,000 | |||||||||||||
Commission rate (as a percent) | 2.00% | |||||||||||||
common shares available for issuance | 2,200,000 | 2,200,000 | ||||||||||||
ATM Agreement | Subsequent Event | ||||||||||||||
Purchase price | $ 0.97 | |||||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 1,800,000 | |||||||||||||
Common stock issued (in shares) | 1,856,960 | |||||||||||||
Commission rate (as a percent) | 2.00% | |||||||||||||
Gross proceeds from common stock sale | $ 37,000 | |||||||||||||
Commission payment | $ 6,000 | |||||||||||||
LPC Program [Member] | ||||||||||||||
Total cost of offering | $ 300,000 | |||||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 216,000 | $ 590,000 | ||||||||||||
Common stock issued (in shares) | 900,000 | 2,113,642 | ||||||||||||
Placement agent fee (as a percent) | 6.00% | |||||||||||||
Sale price (in dollars per shares) | $ 0.27 | $ 0.27 | $ 0.28 | |||||||||||
Amortization of deferred cost | $ 24,000 | $ 58,000 | ||||||||||||
Unamortized deferred cost | $ 352,000 | $ 352,000 | $ 376,000 | |||||||||||
common shares available for issuance | 12,200,000 | 12,200,000 | ||||||||||||
LPC Program [Member] | May 2016 Warrants | ||||||||||||||
Exercise price | $ 0.75 | |||||||||||||
LPC Program [Member] | Series A Warrants | ||||||||||||||
Common shares issuable upon exercise | 8,653,846 | |||||||||||||
Aggregate gross proceeds of warrants | $ 2,250,000 | |||||||||||||
Exercise price | $ 0.35 | |||||||||||||
LPC Program [Member] | Series B Warrants | ||||||||||||||
Common shares issuable upon exercise | 4,500,000 | |||||||||||||
Exercise price | $ 0.35 | |||||||||||||
Number of common shares which can be purchased with each warrant | 1 | |||||||||||||
Commitment purchase agreement | ||||||||||||||
Common shares issuable upon exercise | 3,153,808 | |||||||||||||
Exercise price | $ 0.4122 | |||||||||||||
Aggregate value of securities allowed under agreement | $ 10,000,000 | |||||||||||||
Gross proceeds from common stock sale | $ 1,300,000 | |||||||||||||
Firm Commitment Offering | ||||||||||||||
Number of shares to purchase in agreement | 17,857,143 | |||||||||||||
Purchase price | $ 0.42 | |||||||||||||
Percentage of underwriting discount | 6.00% | |||||||||||||
Total cost of offering | $ 155,000 | |||||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 8,000,000 | |||||||||||||
Over-Allotment Option | ||||||||||||||
Number of shares to purchase in agreement | 2,678,571 | |||||||||||||
Minimum | Private Placement | ||||||||||||||
Warrants Exercise Period | 6 months | |||||||||||||
Maximum | Private Placement | ||||||||||||||
Warrants Exercise Period | 5 years | |||||||||||||
Common Stock | Series B Warrants | ||||||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 2,600,000 | |||||||||||||
Common Stock | Private Placement | ||||||||||||||
Common stock issued (in shares) | 15,000,000 | 15,000,000 | ||||||||||||
Share Price | $ 0.20 | |||||||||||||
Common shares issuable upon exercise | 11,250,000 | |||||||||||||
Common Stock | Private Placement | Series A Warrants | ||||||||||||||
Common shares issuable upon exercise | 7,500,000 | 5,000,000 | 5,000,000 | |||||||||||
Common Stock | Private Placement | Series B Warrants | ||||||||||||||
Common shares issuable upon exercise | 3,750,000 | 3,500,000 | 3,500,000 | |||||||||||
Exercise price | $ 0.26 | $ 0.30 | $ 0.30 | |||||||||||
Common Stock | Subscription Agreement | ||||||||||||||
Common stock issued (in shares) | 4,719,207 | |||||||||||||
Common Stock | LPC Program [Member] | ||||||||||||||
Common stock issued (in shares) | 8,653,846 | 8,653,846 | ||||||||||||
Share Price | $ 0.26 | |||||||||||||
Common Stock | Registered direct purchase agreement | ||||||||||||||
Common stock issued (in shares) | 8,653,846 | |||||||||||||
Common Stock | Firm Commitment Offering | ||||||||||||||
Common stock issued (in shares) | 20,535,714 | |||||||||||||
Common Stock | Maximum | LPC Program [Member] | Series A Warrants | ||||||||||||||
Common stock issued (in shares) | 8,653,846 | |||||||||||||
Barrick | Subscription Agreement | ||||||||||||||
Number of shares to purchase in agreement | 4,719,207 | |||||||||||||
Purchase price | $ 0.2119 | |||||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 900,000 |
Equity - Non-Option Incentive (
Equity - Non-Option Incentive (Details) | May 21, 2020USD ($)employeeshares | Feb. 26, 2020USD ($)employeeshares | Sep. 30, 2014shares | Dec. 31, 2020USD ($)employeedirector$ / sharesshares | Dec. 31, 2019USD ($)employeedirector$ / sharesshares |
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Compensation expense | $ | $ 859,000 | $ 782,000 | |||
Modification of previously awarded KELTIP Units (Note 16) | $ | $ 583,000 | ||||
Sentient | 2014 Warrants | |||||
Number of Shares - Non-option | |||||
Granted during the year (in shares) | 4,746,000 | ||||
KELTIP Units | |||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Compensation expense | $ | $ 448,000 | ||||
KELTIP Units | Officers | |||||
Number of Shares - Non-option | |||||
Granted during the year (in shares) | 1,400,000 | 705,000 | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Number of employees | employee | 2 | 2 | |||
Equity Plan | Restricted Stock | |||||
Number of Shares - Non-option | |||||
Outstanding at beginning of year (in shares) | 318,003 | 340,001 | |||
Granted during the year (in shares) | 300,000 | 312,000 | |||
Restrictions lifted during the year (in shares) | (394,001) | (333,998) | |||
Outstanding at end of year (in shares) | 224,002 | 318,003 | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 0.30 | $ 0.45 | |||
Granted during the year (in dollars per share) | $ / shares | 0.42 | 0.26 | |||
Restrictions lifted during the year (in dollars per share) | $ / shares | 0.36 | 0.41 | |||
Outstanding at end of year (in dollars per share) | $ / shares | $ 0.36 | $ 0.30 | |||
Compensation expense | $ | $ 100,000 | ||||
Additional compensation expense expected to be recognized | $ | $ 100,000 | ||||
Period for future recognition of additional compensation expense | 18 months | ||||
Equity Plan | Restricted Stock | Employees | |||||
Number of Shares - Non-option | |||||
Granted during the year (in shares) | 300,000 | 312,000 | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Compensation expense | $ | $ 100,000 | ||||
Number of employees | employee | 7 | 2 | |||
Equity Plan | Restricted Stock Units (RSUs) | Employees | |||||
Number of Shares - Non-option | |||||
Restrictions lifted during the year (in shares) | (214,001) | ||||
Deferred Compensation Plan | Restricted Stock | Employees | |||||
Number of Shares - Non-option | |||||
Restrictions lifted during the year (in shares) | (229,998) | ||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Number of employees | employee | 5 | ||||
Deferred Compensation Plan | Restricted Stock | Terminated Employees | |||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Additional compensation expense | $ | $ 23,000 | ||||
Deferred Compensation Plan | Restricted Stock Units (RSUs) | |||||
Number of Shares - Non-option | |||||
Outstanding at beginning of year (in shares) | 2,830,038 | 2,230,038 | |||
Granted during the year (in shares) | 780,000 | 600,000 | |||
Outstanding at end of year (in shares) | 3,610,038 | 2,830,038 | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 0.78 | $ 0.93 | |||
Granted during the year (in dollars per share) | $ / shares | 0.40 | 0.24 | |||
Outstanding at end of year (in dollars per share) | $ / shares | $ 0.70 | $ 0.78 | |||
Compensation expense | $ | $ 300,000 | $ 200,000 | |||
Additional compensation expense expected to be recognized | $ | $ 100,000 | ||||
Period for future recognition of additional compensation expense | 6 months | ||||
Number of unrestricted shares Director to receive for vested RSU upon termination from board | 1 | ||||
Number of board members | director | 6 | 6 | |||
Deferred Compensation Plan | Restricted Stock Units (RSUs) | Director | |||||
Number of Shares - Non-option | |||||
Granted during the year (in shares) | 300,000 | ||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Compensation expense | $ | $ 120,000 | ||||
Deferred Compensation Plan | Restricted Stock Units (RSUs) | Board Members [Member] | |||||
Number of Shares - Non-option | |||||
Granted during the year (in shares) | 80,000 | 100,000 | |||
KELTIP | |||||
Number of Shares - Non-option | |||||
Outstanding at beginning of year (in shares) | 2,325,000 | ||||
Outstanding at end of year (in shares) | 3,725,000 | 2,325,000 | |||
KELTIP | KELTIP Units | Officers | |||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Compensation expense | $ | $ 254,000 | ||||
Additional compensation expense | $ | 227,000 | ||||
Modification of previously awarded KELTIP Units (Note 16) | $ | $ 583,000 | ||||
Restricted Stock | Equity Plan | Employees | |||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Number of employees | employee | 7 | ||||
Restricted Stock | Deferred Compensation Plan | Terminated Employees | |||||
Number of Shares - Non-option | |||||
Restrictions lifted during the year (in shares) | (80,000) | ||||
Vesting immediately | Equity Plan | Restricted Stock | |||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Percentage of awards which will vest on each of the first, second and third anniversaries of the grant date | 33.33% | ||||
Vesting immediately | Equity Plan | Restricted Stock | Employees | |||||
Number of Shares - Non-option | |||||
Granted during the year (in shares) | 104,000 | ||||
Vest on first anniversary | Equity Plan | Restricted Stock | |||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Percentage of awards which will vest on each of the first, second and third anniversaries of the grant date | 33.33% | ||||
Vest on first anniversary | Equity Plan | Restricted Stock | Employees | |||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Percentage of awards which will vest on each of the first, second and third anniversaries of the grant date | 33.33% | ||||
Vest on second anniversary | Equity Plan | Restricted Stock | |||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Percentage of awards which will vest on each of the first, second and third anniversaries of the grant date | 33.34% | ||||
Vest on second anniversary | Equity Plan | Restricted Stock | Employees | |||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Percentage of awards which will vest on each of the first, second and third anniversaries of the grant date | 33.34% |
Equity - Option Incentive (Deta
Equity - Option Incentive (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)employee$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Weighted Average Exercise Price Per Share - Options | ||
Compensation expense | $ | $ 859 | $ 782 |
Equity Plan | Restricted Stock | Employees | ||
Weighted Average Exercise Price Per Share - Options | ||
Number of employees | employee | 7 | |
Equity Plan | Employee Stock Option | ||
Number of Shares - Options | ||
Outstanding at beginning of period (in shares) | shares | 30,310 | 30,310 |
Forfeited or expired during period (in shares) | shares | (30,310) | |
Outstanding at end of year (in shares) | shares | 30,310 | |
Exercisable at end of period (in shares) | shares | 30,310 | |
Granted and vested (in shares) | shares | 30,310 | |
Weighted Average Exercise Price Per Share - Options | ||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 8.06 | $ 8.06 |
Forfeited or expired during year (in dollars per share) | $ / shares | $ 8.06 | |
Outstanding at end of year (in dollars per share) | $ / shares | 8.06 | |
Exercisable at end of period (in dollars per share) | $ / shares | 8.06 | |
Granted and vested (in dollars per share) | $ / shares | $ 8.06 |
Equity - Warrants (Details)
Equity - Warrants (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 10, 2019 | Jul. 17, 2019 | Jul. 31, 2019 | May 31, 2016 | Sep. 30, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 19, 2019 | Oct. 31, 2015 |
Warrant | |||||||||
Number of Underlying Shares | |||||||||
Outstanding, beginning balance (in shares) | 14,653,846 | 11,517,696 | |||||||
Dilution adjustment (in shares) | 168,669 | ||||||||
Expired (in shares) | (5,686,365) | ||||||||
Exercised (in shares) | (8,500,000) | ||||||||
Outstanding, end balance (in shares) | 17,403,846 | 14,653,846 | |||||||
Weighted Average Exercise Price Per Share | |||||||||
Outstanding, beginning balance (in dollars per share) | $ 0.39 | $ 0.81 | |||||||
Dilution adjustment (in dollars per share) | 0.80 | ||||||||
Expired during period (in dollar per share) | 0.80 | ||||||||
Exercised during period (in dollar per share) | 0.30 | ||||||||
Outstanding, end balance (in dollars per share) | $ 0.38 | $ 0.39 | |||||||
2014 Warrants | |||||||||
Number of Underlying Shares | |||||||||
Outstanding, beginning balance (in shares) | 4,746,000 | ||||||||
Dilution adjustment (in shares) | 940,365 | ||||||||
Expired (in shares) | 5,686,365 | ||||||||
Outstanding, end balance (in shares) | 5,686,365 | 4,746,000 | |||||||
Weighted Average Exercise Price Per Share | |||||||||
Outstanding, beginning balance (in dollars per share) | $ 1.21 | ||||||||
Outstanding, end balance (in dollars per share) | $ 0.80 | $ 1.21 | |||||||
May 2016 Warrants | |||||||||
Number of Underlying Shares | |||||||||
Exchanged during period (in shares) | (4,500,000) | ||||||||
Weighted Average Exercise Price Per Share | |||||||||
Exchanged during the period (in dollar per share) | $ 0.75 | ||||||||
Series A Warrants | |||||||||
Number of Underlying Shares | |||||||||
Granted (in shares) | 7,500,000 | 8,653,846 | |||||||
Weighted Average Exercise Price Per Share | |||||||||
Granted (in dollars per share) | $ 0.30 | $ 0.35 | |||||||
Outstanding, end balance (in dollars per share) | $ 0.33 | ||||||||
Expiration term of warrant | 5 years | ||||||||
Warrants exercise period | 6 months | 6 months | |||||||
Series B Warrants | |||||||||
Number of Underlying Shares | |||||||||
Granted (in shares) | 3,750,000 | ||||||||
Exchanged during period (in shares) | 4,500,000 | ||||||||
Weighted Average Exercise Price Per Share | |||||||||
Granted (in dollars per share) | $ 0.30 | ||||||||
Exchanged during the period (in dollar per share) | $ 0.35 | ||||||||
Outstanding, end balance (in dollars per share) | $ 0.33 | $ 0.35 | |||||||
Common shares issuable upon exercise | 4,500,000 | ||||||||
Sentient | |||||||||
Weighted Average Exercise Price Per Share | |||||||||
Principal amount of loan | $ 5 | ||||||||
Sentient | 2014 Warrants | |||||||||
Weighted Average Exercise Price Per Share | |||||||||
Outstanding, end balance (in dollars per share) | $ 1.21 | ||||||||
Number of shares of common stock per capital unit (in shares) | 1 | ||||||||
Term of warrants | 5 years | ||||||||
Registered Offering | |||||||||
Weighted Average Exercise Price Per Share | |||||||||
Common stock issued (in shares) | 8,000,000 | ||||||||
Sale price (in dollars per shares) | $ 0.50 | ||||||||
Gross proceeds from common stock sale | $ 4 | ||||||||
Registered Offering | 2016 Warrants | |||||||||
Number of Underlying Shares | |||||||||
Outstanding, end balance (in shares) | 6,000,000 | ||||||||
Weighted Average Exercise Price Per Share | |||||||||
Number of shares of common stock per capital unit (in shares) | 0.75 | ||||||||
Term of warrants | 5 years | ||||||||
LPC Program [Member] | |||||||||
Weighted Average Exercise Price Per Share | |||||||||
Common stock issued (in shares) | 900,000 | 2,113,642 | |||||||
Sale price (in dollars per shares) | $ 0.27 | $ 0.28 | |||||||
LPC Program [Member] | May 2016 Warrants | |||||||||
Weighted Average Exercise Price Per Share | |||||||||
Outstanding, end balance (in dollars per share) | 0.75 | ||||||||
LPC Program [Member] | Series A Warrants | |||||||||
Weighted Average Exercise Price Per Share | |||||||||
Outstanding, end balance (in dollars per share) | $ 0.35 | ||||||||
Common shares issuable upon exercise | 8,653,846 | ||||||||
LPC Program [Member] | Series B Warrants | |||||||||
Weighted Average Exercise Price Per Share | |||||||||
Outstanding, end balance (in dollars per share) | $ 0.35 | ||||||||
Number of common shares which can be purchased with each warrant | 1 | ||||||||
Common shares issuable upon exercise | 4,500,000 | ||||||||
Common Stock | LPC Program [Member] | |||||||||
Weighted Average Exercise Price Per Share | |||||||||
Common stock issued (in shares) | 8,653,846 | 8,653,846 |
Revenue, Deferred Revenue and_2
Revenue, Deferred Revenue and Related Costs (Details) $ / shares in Units, shares in Millions | Dec. 03, 2019$ / item | Dec. 02, 2019USD ($)$ / oz$ / item | Aug. 02, 2017USD ($)$ / sharesshares | Nov. 30, 2020USD ($) | Dec. 31, 2020USD ($)$ / item | Dec. 31, 2019USD ($) |
Oxide plant lease (Note 17) | $ 5,637,000 | $ 7,730,000 | ||||
Lease related costs | 1,988,000 | 2,377,000 | ||||
Operating Lease Monthly Fee | $ 125,000 | |||||
Variable fee (per tonne) | $ / item | 11 | 22 | 22 | |||
Increase (Decrease) in Deferred Revenue | $ 63,000 | (128,000) | ||||
Average price | $ / oz | 20 | |||||
Average head grade | $ / item | 1,000 | |||||
Lease payment | $ 125,000 | |||||
Oxide Plant | ||||||
Renewal term | 2 years | |||||
Expected lease proceeds | $ 1,000,000 | 300,000 | 300,000 | |||
Gross proceeds from common stock sale | $ 1,000,000 | $ 1,000,000 | ||||
Common stock issued (in shares) | shares | 1.8 | |||||
Sale price (in dollars per shares) | $ / shares | $ 0.55 | |||||
Volume weighted average stock price period | 30 days | |||||
Deferred revenue | 300,000 | |||||
Increase (Decrease) in Deferred Revenue | $ 74,000 | 74,000 | ||||
Termination notice period | 150 days | 120 days | ||||
Velardena Properties | ||||||
Lease related costs | 2,400,000 | |||||
Increase (Decrease) in Deferred Revenue | $ 7,700,000 |
Interest and Other Expense, N_2
Interest and Other Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Golden Tag | ||
Interest and Other Income [Line Items] | ||
Interest and other expense | $ 0.2 | |
Sentient Loan | ||
Interest and Other Income [Line Items] | ||
Interest and other expense | $ 0.1 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | Mar. 11, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash flows from operating activities: | |||
Net loss | $ (9,086) | $ (5,386) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 962 | 1,098 | |
Accretion of asset retirement obligation | 249 | 225 | |
Decrease (increase) in derivative at fair value, net | 254 | (254) | |
(Gain) loss on trading securities | (20) | 217 | |
Asset write off | $ 0 | 100 | 19 |
Gain on reduction of asset retirement obligation | (63) | ||
Gain on sale of assets | (525) | (3,144) | |
Stock compensation | 859 | 782 | |
Changes in operating assets and liabilities from continuing operations: | |||
Decrease in lease receivable | 376 | 33 | |
Increase in prepaid expenses and other assets | (506) | (37) | |
Increase in inventories | (53) | (2) | |
Increase in other long term assets | (341) | (562) | |
Decrease in reclamation liability | (4) | (5) | |
(Decrease) increase in accounts payable and accrued liabilities | (810) | 514 | |
(Decrease) increase in other current liabilities | (1,156) | 1,811 | |
Increase (decrease) in deferred revenue | 63 | (128) | |
Increase in other long term liabilities | 154 | 484 | |
Other | 3 | ||
Net cash used in operating activities | $ (9,484) | $ (4,395) |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Supplemental and Non-cash transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information | ||
Interest paid | $ 96 | |
Income taxes paid | 284 | |
Deferred equity offering costs amortized | 32 | $ 58 |
Fair value of shares received for sale of mineral property (see Note 9) | $ 59 | $ (113) |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Apr. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Contingencies | |||
Loss contingency | $ 0 | $ 0 | |
Velardena Properties | |||
Leases and Purchase Commitments | |||
2021 | 23,000 | ||
2022 | 23,000 | ||
2023 | 23,000 | ||
2024 | 23,000 | ||
2025 | 23,000 | ||
Lease payments | 52,000 | 110,000 | |
Surface right agreement with local ejido | |||
Leases and Purchase Commitments | |||
2021 | 69,000 | ||
Lease payments | 131,000 | 58,000 | |
El Quevar Project | |||
Leases and Purchase Commitments | |||
2021 | 15,000 | ||
2022 | 15,000 | ||
2023 | 15,000 | ||
2024 | 15,000 | ||
2025 | 15,000 | ||
Thereafter | 15,000 | ||
Lease payments | 22,000 | 36,000 | |
Velardeña ajido and surface rights | |||
Leases and Purchase Commitments | |||
2021 | 46,000 | ||
2022 | 46,000 | ||
2023 | 46,000 | ||
2024 | 46,000 | ||
2025 | 46,000 | ||
Rodeo mining concessions | |||
Leases and Purchase Commitments | |||
2021 | 34,000 | ||
2022 | 34,000 | ||
2023 | 34,000 | ||
2024 | 34,000 | ||
2025 | 34,000 | ||
Rodeo Ajido and Surface Rights | |||
Leases and Purchase Commitments | |||
2021 | 96,000 | ||
2022 | 96,000 | ||
2023 | 96,000 | ||
2024 | 96,000 | ||
2025 | 96,000 | ||
Rodeo Project | |||
Leases and Purchase Commitments | |||
2021 | 130,000 | ||
Office space | |||
Leases and Purchase Commitments | |||
2021 | 166,000 | ||
2022 | 158,000 | ||
2023 | 151,000 | ||
2024 | 110,000 | ||
2025 | 9,000 | ||
Lease payments | 99,000 | 183,000 | |
Reduction in space (as a percent) | 45.00% | ||
Reduction in cost (as a percent) | 45.00% | ||
Mexican office | |||
Leases and Purchase Commitments | |||
Lease payments | 53,000 | 50,000 | |
Argentina office | |||
Leases and Purchase Commitments | |||
Lease payments | $ 9,000 | $ 8,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Segment Information | ||
Number of reportable segments | segment | 2 | |
Revenue | $ 5,637 | $ 7,730 |
Costs Applicable to Sales | 1,988 | 2,377 |
Depreciation, depletion and amortization | 962 | 1,098 |
Exploration, El Quevar, Velardena and Administrative Expense | 10,386 | 11,531 |
Pre-Tax (Income)/Loss | 9,038 | 5,351 |
Total Assets | 18,306 | 13,357 |
Capital Expenditures | $ 470 | 38 |
Velardena Properties | ||
Segment Information | ||
Number of reportable segments | segment | 1 | |
Revenue | $ 5,637 | 7,730 |
Costs Applicable to Sales | 1,988 | 2,377 |
Depreciation, depletion and amortization | 697 | 796 |
Exploration, El Quevar, Velardena and Administrative Expense | 1,913 | 2,538 |
Pre-Tax (Income)/Loss | (808) | (4,301) |
Total Assets | 4,175 | 8,069 |
Capital Expenditures | 301 | 11 |
Corporate, Exploration and Other | ||
Segment Information | ||
Depreciation, depletion and amortization | 265 | 302 |
Exploration, El Quevar, Velardena and Administrative Expense | 8,473 | 8,993 |
Pre-Tax (Income)/Loss | 9,846 | 9,652 |
Total Assets | 14,131 | 5,288 |
Capital Expenditures | $ 169 | $ 27 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Aug. 12, 2020 | Aug. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 30, 2020 |
Related Party Transaction | |||||
Payment of related party loan (note 13) | $ 1,000,000 | ||||
Administrative Services | |||||
Related Party Transaction | |||||
Received amount | $ 180,000 | $ 180,000 | |||
Minera Inde | |||||
Related Party Transaction | |||||
Monthly charges received | $ 15,000 | ||||
Sentient Loan | |||||
Related Party Transaction | |||||
Debt - related party | $ 1,000,000 | ||||
Short term loan interest rate | 10.00% | ||||
Payment of related party loan (note 13) | $ 1,037,159 | ||||
Fees paid to DGS for legal services | $ 0 | ||||
Sentient Loan | Sentient | |||||
Related Party Transaction | |||||
Ownership (as a percent) | 38.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 15, 2021 | Jul. 21, 2020 | Mar. 11, 2020 | Jan. 31, 2021 | Dec. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 17, 2019 |
Subsequent Event | ||||||||
Asset impairment charge | $ 0 | $ 100,000 | $ 19,000 | |||||
Proceeds from Issuance of Common Stock | $ 14,599,000 | $ 2,476,000 | ||||||
Firm Commitment Offering | ||||||||
Subsequent Event | ||||||||
Sale of Stock, Price Per Share | $ 0.42 | |||||||
Proceeds from Issuance of Common Stock | $ 8,000,000 | |||||||
ATM Agreement | ||||||||
Subsequent Event | ||||||||
Stock Issued During Period, Shares, New Issues | 823,452 | 33,995 | ||||||
Proceeds from Issuance of Common Stock | $ 223,000 | $ 11,000 | ||||||
Percentage of Commission | 2.00% | |||||||
ATM Agreement | Subsequent Event | ||||||||
Subsequent Event | ||||||||
Stock Issued During Period, Shares, New Issues | 1,856,960 | |||||||
Sale of Stock, Price Per Share | $ 0.97 | |||||||
Proceeds from Issuance of Common Stock | $ 1,800,000 | |||||||
Percentage of Commission | 2.00% | |||||||
Proceeds from Issuance of Common Stock, Gross | $ 37,000 | |||||||
Payments for Commissions | $ 6,000 | |||||||
Series A Warrants | ||||||||
Subsequent Event | ||||||||
Exercise price of warrants (in dollars per share) | $ 0.33 | |||||||
Series A Warrants | Subsequent Event | ||||||||
Subsequent Event | ||||||||
Class of warrants or rights exercised | 200,000 | |||||||
Exercise price of warrants (in dollars per share) | $ 0.30 | |||||||
Proceeds from Warrant | $ 420,000 | |||||||
Series A Warrants | Private Placement | Subsequent Event | ||||||||
Subsequent Event | ||||||||
Class of warrants or rights exercised | 1,400,000 | |||||||
Series B Warrants | ||||||||
Subsequent Event | ||||||||
Exercise price of warrants (in dollars per share) | $ 0.35 | $ 0.33 | ||||||
Series B Warrants | Subsequent Event | ||||||||
Subsequent Event | ||||||||
Class of warrants or rights exercised | 1,500,000 | |||||||
Exercise price of warrants (in dollars per share) | $ 0.35 | |||||||
Proceeds from Warrant | $ 595,000 |