Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2020 | Aug. 14, 2020 | |
Details | ||
Registrant CIK | 0001288750 | |
Fiscal Year End | --09-30 | |
Registrant Name | Timberline Resources Corp | |
SEC Form | 10-Q | |
Period End date | Jun. 30, 2020 | |
Trading Symbol | TLRS | |
Trading Exchange | NONE | |
Tax Identification Number (TIN) | 82-0291227 | |
Number of common stock shares outstanding | 74,895,260 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Interactive Data Current | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | false | |
Entity File Number | 001-34055 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 101 EAST LAKESIDE AVENUE | |
Entity Address, City or Town | COEUR D’ALENE | |
Entity Address, State or Province | ID | |
Entity Address, Postal Zip Code | 83814 | |
City Area Code | 208 | |
Local Phone Number | 664-4859 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Timberline Resources Corp and S
Timberline Resources Corp and Subsidiaries Consolidated Balance Sheets (unaudited) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 |
CURRENT ASSETS: | ||
Cash | $ 102,678 | $ 30,757 |
Prepaid expenses and other current assets | 43,892 | 21,132 |
Account receivable | 0 | 118,525 |
TOTAL CURRENT ASSETS | 146,570 | 170,414 |
PROPERTY, MINERAL RIGHTS AND EQUIPMENT, net | 13,720,815 | 15,023,843 |
OTHER ASSETS: | ||
Reclamation bonds | 292,682 | 305,184 |
Deposits and other assets | 5,700 | 5,700 |
TOTAL OTHER ASSETS | 298,382 | 310,884 |
TOTAL ASSETS | 14,165,767 | 15,505,141 |
CURRENT LIABILITIES: | ||
Accounts payable | 32,073 | 103,485 |
Accrued expenses | 19,707 | 102,236 |
Accrued interest | 5,831 | 10,956 |
Accrued interest - related party | 173,975 | 83,107 |
Accrued payroll, benefits and taxes | 61,058 | 24,038 |
Due to LM LLC | 205,194 | 0 |
Payment obligation, current | 150,239 | 178,533 |
224,684 | 0 | |
TOTAL CURRENT LIABILITIES | 872,761 | 502,355 |
LONG-TERM LIABILITIES: | ||
Asset retirement obligation | 190,917 | 168,619 |
Senior unsecured note payable - related party | 300,000 | 452,255 |
TOTAL LONG-TERM LIABILITIES | 490,917 | 620,874 |
TOTAL LIABILITIES | 1,363,678 | 1,123,229 |
COMMITMENTS AND CONTINGENCIES (Note 9) | 0 | 0 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 200,000,000 shares authorized, 74,895,260 and 67,395,260 shares issued and outstanding, respectively | 74,895 | 67,395 |
Additional paid-in capital | 75,492,358 | 74,568,258 |
Accumulated deficit | (62,765,164) | (60,253,741) |
TOTAL STOCKHOLDERS' EQUITY | 12,802,089 | 14,381,912 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 14,165,767 | $ 15,505,141 |
Timberline Resources Corp and_2
Timberline Resources Corp and Subsidiaries Consolidated Balance Sheets (unaudited) - Parenthetical - $ / shares | Jun. 30, 2020 | Sep. 30, 2019 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 74,895,260 | 67,395,260 |
Common Stock, Shares, Outstanding | 74,895,260 | 67,395,260 |
Timberline Resources Corp and_3
Timberline Resources Corp and Subsidiaries Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING EXPENSES: | ||||
Mineral exploration | $ 30,221 | $ 312,960 | $ 189,452 | $ 612,987 |
Salaries and benefits | 49,931 | 49,326 | 242,545 | 120,987 |
Professional fees | 10,224 | 56,924 | 129,689 | 219,456 |
Insurance expense | 21,607 | 21,961 | 73,785 | 70,008 |
Other general and administrative | 50,087 | 30,592 | 300,409 | 137,969 |
Impairment loss on claims - Elder Creek | 1,218,715 | 0 | 1,218,715 | 0 |
TOTAL OPERATING EXPENSES | 1,380,785 | 471,763 | 2,154,595 | 1,161,407 |
LOSS FROM OPERATIONS | (1,380,785) | (471,763) | (2,154,595) | (1,161,407) |
OTHER INCOME (EXPENSE): | ||||
Foreign exchange gain (loss) | (691) | (64) | (297) | 688 |
Loss on extinguishment of debt - related party | 0 | 0 | (195,611) | 0 |
Interest expense | (3,230) | (48,018) | (22,761) | (126,710) |
Interest expense - related party | (47,075) | 0 | (138,187) | 0 |
Miscellaneous other income | 3 | 4 | 28 | 11 |
TOTAL OTHER INCOME (EXPENSE) | (50,993) | (48,078) | (356,828) | (126,011) |
LOSS BEFORE INCOME TAXES | (1,431,778) | (519,841) | (2,511,423) | (1,287,418) |
INCOME TAX PROVISION (BENEFIT) | 0 | 0 | 0 | 0 |
NET LOSS | $ (1,431,778) | $ (519,841) | $ (2,511,423) | $ (1,287,418) |
NET LOSS PER SHARE BASIC AND DILUTED | $ (0.02) | $ (0.01) | $ (0.03) | $ (0.02) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED | 74,895,260 | 61,511,335 | 74,265,698 | 61,172,171 |
Timberline Resources Corp and_4
Timberline Resources Corp and Subsidiaries Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Equity Balance at Sep. 30, 2018 | $ 53,528 | $ 73,197,430 | $ (58,596,458) | $ 14,654,500 |
Equity balance, shares at Sep. 30, 2018 | 53,527,819 | |||
Common stock and warrants issued for cash | $ 7,500 | 592,500 | 0 | 600,000 |
Common stock and warrants issued for cash | 7,500,000 | |||
Stock based compensation | $ 0 | 5,000 | 0 | 5,000 |
Warrants issued for joint venture to AGEI | 0 | 176,000 | 0 | 176,000 |
Net loss | $ 0 | 0 | (549,653) | (549,653) |
Equity balance, shares at Dec. 31, 2018 | 61,027,819 | |||
Equity Balance at Dec. 31, 2018 | $ 61,028 | 73,970,930 | (59,146,111) | 14,885,847 |
Common stock and warrants issued for cash | $ 2,000 | 158,000 | 0 | 160,000 |
Common stock and warrants issued for cash | 2,000,000 | |||
Net loss | $ 0 | 0 | (217,924) | (217,924) |
Equity balance, shares at Mar. 31, 2019 | 63,027,819 | |||
Equity Balance at Mar. 31, 2019 | $ 63,028 | 74,128,930 | (59,364,035) | 14,827,923 |
Common stock and warrants issued for cash | $ 1,000 | 79,000 | 0 | 80,000 |
Common stock and warrants issued for cash | 1,000,000 | |||
Warrants issued with debt | $ 0 | 94,300 | 0 | 94,300 |
Net loss | $ 0 | 0 | (519,841) | (519,841) |
Equity balance, shares at Jun. 30, 2019 | 64,027,819 | |||
Equity Balance at Jun. 30, 2019 | $ 64,028 | 74,302,230 | (59,883,876) | 14,482,382 |
Equity Balance at Sep. 30, 2019 | $ 67,395 | 74,568,258 | (60,253,741) | 14,381,912 |
Equity balance, shares at Sep. 30, 2019 | 67,395,260 | |||
Common stock and warrants issued for cash | $ 7,500 | 592,500 | 0 | 600,000 |
Common stock and warrants issued for cash | 7,500,000 | |||
Stock based compensation | $ 0 | 161,100 | 0 | 161,100 |
Warrants issued with debt | 0 | 170,500 | 0 | 170,500 |
Net loss | $ 0 | 0 | (764,619) | (764,619) |
Equity balance, shares at Dec. 31, 2019 | 74,895,260 | |||
Equity Balance at Dec. 31, 2019 | $ 74,895 | 75,492,358 | (61,018,360) | 14,548,893 |
Equity Balance at Sep. 30, 2019 | $ 67,395 | 74,568,258 | (60,253,741) | $ 14,381,912 |
Equity balance, shares at Sep. 30, 2019 | 67,395,260 | |||
Common stock and warrants issued for cash | 7,500,000 | |||
Equity balance, shares at Jun. 30, 2020 | 74,895,260 | |||
Equity Balance at Jun. 30, 2020 | $ 74,895 | 75,492,358 | (62,765,164) | $ 12,802,089 |
Equity Balance at Dec. 31, 2019 | $ 74,895 | 75,492,358 | (61,018,360) | 14,548,893 |
Equity balance, shares at Dec. 31, 2019 | 74,895,260 | |||
Net loss | $ 0 | 0 | (315,026) | (315,026) |
Equity balance, shares at Mar. 31, 2020 | 74,895,260 | |||
Equity Balance at Mar. 31, 2020 | $ 74,895 | 75,492,358 | (61,333,386) | 14,233,867 |
Net loss | $ 0 | 0 | (1,431,778) | (1,431,778) |
Equity balance, shares at Jun. 30, 2020 | 74,895,260 | |||
Equity Balance at Jun. 30, 2020 | $ 74,895 | $ 75,492,358 | $ (62,765,164) | $ 12,802,089 |
Timberline Resources Corp and_5
Timberline Resources Corp and Subsidiaries Consoldiated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,511,423) | $ (1,287,418) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Stock based compensation | 161,100 | 5,000 |
Accretion of asset retirement obligation | 22,298 | 5,999 |
Amortization of discount on senior unsecured notes payable - related party | 47,320 | 65,451 |
Loss on extinguishment of debt - related party | 195,611 | 0 |
Impairment loss on claims - Elder Creek | 1,218,715 | 0 |
Changes in assets and liabilities: | ||
Prepaid expenses and other current assets | (22,760) | 683 |
Accounts receivable | 118,525 | 0 |
Accounts payable | (71,412) | 34,101 |
Accrued expenses | (82,529) | 58,499 |
Accrued interest | (5,125) | 0 |
Accrued interest - related party | 90,868 | 0 |
Accrued payroll, benefits and taxes | 37,020 | 28,762 |
Net cash used by operating activities | (801,792) | (1,088,923) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of mineral rights | 0 | (54,000) |
Proceeds from lease of mineral rights | 84,313 | 76,782 |
Proceeds from LM LLC - bond advance | 205,194 | 0 |
Refund of reclamation bond | 12,500 | 0 |
Net cash provided by investing activities | 302,007 | 22,782 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock and warrants, net | 600,000 | 840,000 |
Cash paid on payment obligation | (28,294) | (20,273) |
Proceeds from senior unsecured notes payable and warrants | 250,000 | |
Net cash provided by financing activities | 571,706 | 1,069,727 |
Net increase in cash and cash equivalents | 71,921 | 3,586 |
CASH AT BEGINNING OF PERIOD | 30,757 | 110,736 |
CASH AT END OF PERIOD | 102,678 | 114,322 |
NON-CASH FINANCING AND INVESTING ACTIVITIES: | ||
Warrants issued for purchase of mineral properties | $ 0 | 176,000 |
Warrants issued with debt financing | $ 94,300 |
Note 1 - Organization and Descr
Note 1 - Organization and Description of Business | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 1 - Organization and Description of Business: | NOTE 1 ORGANIZATION AND DESCRIPTION OF BUSINESS: Timberline Resources Corporation (Timberline or the Company) was incorporated in August of 1968 under the laws of the State of Idaho as Silver Crystal Mines, Inc., for the purpose of exploring for precious metal deposits and advancing them to production. In 2008, the Company reincorporated into the State of Delaware, pursuant to a merger agreement approved by its shareholders. Basis of Presentation - For further information refer to the financial statements and footnotes thereto in the Companys Annual Report on Form 10-K for the year ended September 30, 2019. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 2 - Summary of Significant Accounting Policies: | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Companys management, which is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of the financial statements. a. Going Concern The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. b. New Accounting Pronouncements - Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. c. Principles of Consolidation d. Reclassifications e. Reclamation Bonds f. Estimates and Assumptions g. Stock-based Compensation The value of common stock awards is determined based upon the closing price of the Companys stock on the grant date of the award. Compensation expense for grants that vest is recognized ratably over the vesting period. The fair value of stock unit or stock awards is determined by the closing price of the Companys common stock on the date of the grant. h. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities as of June 30, 2020 and 2019 is as follows: June 30, 2020 June 30, 2019 Stock options 5,400,000 3,280,000 Warrants 45,541,908 45,489,967 Total potential dilution 50,941,908 48,769,967 At June 30, 2020 and 2019, the effect of the Companys common stock equivalents would have been anti-dilutive. Accordingly, only basic EPS is presented. |
Note 3 - Property, Mineral Righ
Note 3 - Property, Mineral Rights, and Equipment | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 3 - Property, Mineral Rights, and Equipment: | NOTE 3 PROPERTY, MINERAL RIGHTS, AND EQUIPMENT: The following is a summary of property, mineral rights, and equipment and accumulated depreciation at June 30, 2020 and September 30, 2019, respectively: Expected Useful Lives (years) June 30, 2020 September 30, 2019 Mineral rights - Eureka - $ 5,949,334 $ 6,033,647 Mineral rights Investment in LLC - 7,560,004 7,560,004 Mineral rights Elder Creek - - 1,218,715 ARO asset - 110,000 110,000 Mineral rights Other - 50,000 50,000 Total mineral rights 13,669,338 14,972,366 Equipment and vehicles 2-5 53,678 53,678 Office equipment and furniture 3-7 70,150 70,150 Land - 51,477 51,477 Total property and equipment 175,305 175,305 Less accumulated depreciation (123,828) (123,828) Property, mineral rights, and equipment, net $ 13,720,815 $ 15,023,843 Depreciation expense for the three and nine months ended June 30, 2020 and 2019, was nil and nil, respectively. For the three and nine months ended June 30, 2020 and 2019, the Company received lease payments of $26,104 and $25,664, and $84,313 and $76,782, respectively, from a third party on two property blocks the Company leases at the Companys Eureka property. Monthly payments in the amount of approximately $8,500 are expected to continue to be received. These receipts are recorded as a reduction to property, mineral rights, and equipment. Elder Creek property: On May 23, 2018, the Company executed a definitive agreement with AGEI (the Definitive Agreement) for the purchase of interests in two mineral properties in Nevada (the Transaction). The mineral properties include the Elder Creek project, currently owned by McEwen Mining Inc., which includes an option to acquire up to 65% of the project interest, and an approximate 73.7% interest in the Paiute property (formerly ICBM), with LAC Minerals (USA) LLC, a wholly owned subsidiary of Nevada Gold Corporation. The Company is the operator at both of these projects. The consideration for the Transaction consisted of ten million shares of the Companys common stock, valued at $0.0806 per share, or $806,000, and five million non-transferrable Class D-2 share purchase warrants (the Consideration Warrants), with each warrant exercisable to acquire one share of the Companys common stock for $0.24 for a period of three years. The warrants were fair valued at $240,000. (See Note 11 Commitments & Contingencies) In addition, an amendment to the Definitive Agreement required the Company to deliver to AGEI an additional 5,000,000 common stock purchase warrants with the same terms and in the same form as the Consideration Warrants when the Company meets the 2018 work commitment of $500,000. The Company met the 2018 calendar years work commitment, and issued 5,000,000 Class G warrants with a fair value of $176,000 on December 31, 2018. The Definitive Agreement included, among other expenditure requirements, that on June 30 of each year all Bureau of Land Management (BLM) unpatented claim fees and county fees would be paid to McEwen. On June 30, 2020, the Company was unable to make the required payment of the BLM and county fees to McEwen. As a result, pursuant to the terms of the Agreement, the Agreement terminated on July 9, 2020. As a result of the termination of the Agreement, operations of Elder Creek reverted back to McEwen and the Company retains no interest in Elder Creek. An impairment loss of $1,218,715 was recognized for the quarter ended June 30, 2020 due to the triggering event of the non-remittance of the required payment at the end of the quarter. The entire investment in Elder Creek became impaired and was expensed. Lookout Mountain LLC Related Party: On June 28, 2019, the Company entered into a Limited Liability Company Agreement (the Agreement) to form a Limited Liability Company, the Lookout Mountain LLC (the LM LLC) with PM&Gold Mines, Inc. (PM&G) for the advanced exploration, and if determined feasible, the development of the Companys Lookout Mountain Gold project. Pursuant to the Agreement, the Company would contribute the claims that constitute the Lookout Mountain project and adjacent historical Oswego Mine area to the joint venture, and PM&G would expend US$6 million on exploration and development over a 2-year period, $3 million of which was to be expended by June 28, 2020. The LLC Agreement calls for PM&G to fund exploration and development activities in two stages for an earned equity in the project. Timberline contributed certain claims that constitute the Lookout Mountain project and adjacent historical Oswego Mine area (the Project) to the limited liability company in exchange for a 49% ownership position. Timberline is responsible for setting the exploration budget, plans and executing those plans for the project at least through Stage I of the investment, but does not control the LLC. PM&G shall retain the right to manage all Stage II activities with or without Timberlines participation. Concurrent with completion of the Agreement, PM&G also participated in a private placement and acquired 3,367,441 shares, or 4.99%, of Timberlines common shares. The placement includes the right of PM&G to maintain its position in Timberline by pro-rata participation in future financings. The initial interests in the LLC are 51% PM&G and 49% Timberline. The Company accounts for its investment in the LLC on the cost basis. During the three and nine months ended June 30, 2020, the Company paid $16,725 and $36,688, respectively, for Stage I exploration costs incurred by the Company on behalf of Lookout Mountain LLC, predominantly consulting and related expenses paid to consultants employed by the Company. The Company was fully reimbursed for these expenditures from the LM LLC. On June 28, 2020, PM&G did not meet the required expenditure of $3 million to the Project. As a result, pursuant to the terms of the Agreement, the Agreement terminated on July 28, 2020. As a result of the termination of the Agreement, at July 28, 2020, the claims that constitute the Lookout Mountain project and adjacent historical Oswego Mine area reverted back to the control of the Company, and PM&G retains no interest in the Project as of that subsequent date. Management evaluated this termination and determined there was no triggering event that would result in impairment of its investment in the LM LLC, due to the expectation that the Company will receive back all assets, consisting of claims, at the same carrying value as they were transferred to the LM LLC. Reclamation Bonds When the Company files an exploration plan with the Bureau of Land Management (BLM) in the State of Nevada, a reclamation bond is calculated by the BLM and paid by the Company. Since 2016, a bond of $205,194 has been held by the BLM for claims subsequently transferred to Lookout Mountain LLC, a related party. Because the Company is the legal obligor under a mining permit for these claims, as well as the associated Asset Retirement Obligation (ARO), neither the reclamation bond nor the ARO can be transferred to Lookout Mountain LLC until PM&Gs interest in the LLC Agreement vests with the completion of its funding requirements under the LLC Agreement, and the LLC becomes the legal obligor under the mining permit. During the quarter ended June 30, 2020, Lookout Mountain LLC remitted $205,194 cash to the Company as an advance, to be satisfied with any future transfer of the bond and the ARO to the LLC. The Company holds $87,488 in reclamation bond deposits for other claims it holds. During the nine months ended June 30, 2020, $12,500 excess deposits on other claims previously held by the Company were refunded, resulting in a reclamation bond deposit balance of $292,682 for the Company at June 30, 2020. At September 30, 2019, the reclamation bond deposit balance was $305,184. |
Note 4 - Related-party Transact
Note 4 - Related-party Transactions | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 4 - Related-party Transactions: | NOTE 4 RELATED-PARTY TRANSACTIONS: In addition to the related-party transactions described in Note 6, during the nine months ended June 30, 2020, a member of the Board of Directors, William Matlack, participated in a private placement offering of Units of the Company, purchasing 7,500,000 units for total proceeds of $600,000. Mr. Matlack subscribed to 7,125,000 units for a total of $570,000. See Note 7 for details of the private placement. In connection with the Definitive Agreement with AGEI for the purchase of two joint venture interests during the fiscal year ended September 30, 2018, Mr. Donald J. McDowell and Mr. Dave Mathewson were appointed to the Companys Board of Directors on June 21, 2018. Mr. McDowell is the majority owner of AGEI and is the beneficial owner of the majority of the consideration for the Transaction. Therefore, he is the beneficial owner of the majority of the 5,000,000 Class G warrants issued to AGEI . During the nine months ended June 30, 2019, the Board of Directors issued 100,000 stock options to acquire shares of common stock of the Company to Mr. Ted R. Sharp, the Companys Chief Financial Officer, appointed to the position in September of 2018. The options were fair valued at $5,000 based upon the closing price of the Companys shares of common stock at December 31, 2018 (See Note 7 for valuation assumptions). There were no such transactions for the three and nine months ended June 20, 2020. During the nine months ended June 30, 2019, two executive officers participated in a private placement offering of Units of the Company, purchasing, in the aggregate, 1,062,500 units for total proceeds of $85,000. Each Unit was priced at $0.08 and consisted of one share of common stock of the Company and one common share Class E Warrant, with each warrant exercisable to acquire an additional share of common stock of the Company at a price of $0.14 per share until April 30, 2021. The participation of the executive officers of the Company was done at the same terms as the other investors in the private placement offering. The Board of Directors approved the insiders participation in the private placement. There were no such transactions for the three and nine months ended June 20, 2020. |
Note 5 - Payment Obligation
Note 5 - Payment Obligation | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 5 - Payment Obligation: | NOTE 5 PAYMENT OBLIGATION: On September 12, 2017, the Company entered into an agreement (the Payment Agreement) with a creditor (the Creditor) to pay by way of a payment plan an existing obligation of $250,000 (the Payment Obligation) related to a potential corporate transaction in 2015 that was not completed. Pursuant to the Payment Agreement, the Company agreed to pay the Payment Obligation to the Creditor, including interest, on or before September 12, 2020. Interest accrues on the unpaid principal amount of the Payment Obligation at the Wells Fargo Bank prime rate (3.25% at June 30, 2020), as such rate may change from time to time, plus 3% per annum. The Company agreed to pay the Creditor 5% of the gross proceeds of any funds raised, whether through equity sales, borrowings or sales of assets. If the gross proceeds of any equity financing are at least $1 million, then the Company agreed to also commence monthly installment payments of $10,000 until the Payment Obligation is paid. On December 30, 2019, the Company entered into Addendum 1 to the Payment Agreement under which Creditor has agreed to waive a default condition in consideration of a $5,000 fee and a payment of $12,500, 5% of the second Senior unsecured note of $250,000. Payment of the remaining $40,470 of delinquent amounts, representing 5% of thee private placements of $80,000, $160,000 and $269,395 respectively and 5% on a Senior unsecured notes payable totaling $300,000, will be paid from the next equity or debt raise in addition to any 5% fee due thereon. The obligation to commence monthly installment payments of $10,000 until the Payment Obligation is paid has not yet been triggered because the Company has not completed a financing with gross proceeds of at least $1 million. The due date of the Payment Agreement was not modified by the Addendum. During the three and nine months ended June 30, 2020, the Company paid $0 and $42,500, including interest of $14,206, respectively, to the Creditor. The balance of the Payment Obligation was $150,239 and $178,533 at June 30, 2020 and September 30, 2019, respectively. |
Note 6 - Senior Unsecured Note
Note 6 - Senior Unsecured Note Payable - Related Party | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 6 - Senior Unsecured Note Payable - Related Party | NOTE 6 SENIOR UNSECURED NOTE PAYABLE RELATED PARTY: On July 30, 2018, the Company entered into a loan agreement and promissory note with William Matlack, a significant shareholder and a director as of October 29, 2019, (the Lender), thereafter becoming a related party. Under the loan agreement, the Lender loaned the Company $300,000 in the form of a senior unsecured note, with the principal bearing interest at an annual rate of 18%, compounded monthly. The loan is unsecured and the principal and accrued interest would have become due for repayment on January 20, 2020, but could have been repaid early without penalty. Pursuant to the terms of the loan agreement, the Company issued to the Lender 3,265,500 non-transferrable Series F Warrants to purchase common shares of the Company. The exercise price of the warrants was $0.09, and the warrants contained a provision restricting their exercise in the event any such exercise would cause the Lender to own 10% or more of the Companys outstanding common shares. The relative fair value of the warrants issued in connection with the senior unsecured note was estimated at $110,900, based upon a total fair value as calculated by a Black-Scholes option-pricing model. On October 4, 2019, the Company entered into an agreement with the note holder to extend the due date of the note for a period of three years to mature on January 20, 2023, with the terms of the original note staying the same. The Series F Warrants were cancelled and replaced with 4,000,000 Series K Warrants issued solely in relation to the extension of the note, with expiration at February 1, 2023 and an exercise price of $0.08. As a result of the extension of the due date, this note has been included in long-term debt on the Companys consolidated balance sheet. The Company accounted for the change in terms of this Senior unsecured note payable as a debt modification in accordance with ASC 470. The fair value of the Series K Warrants issued in connection with the extension of the senior unsecured note and the fair value of the Series F Warrants at the date of amendment were estimated at $227,600 and $57,100, respectively, based upon fair values as calculated by a Black-Scholes option-pricing model using the following assumptions: Series K Warrants Issued October 4, 2019 Series F Warrants Canceled October 4, 2019 Expected volatility 147.20% 147.20% Stock price on date of grant $0.07 $0.07 Exercise price $0.08 $0.09 Expected dividends - - Expected term (in years) 3.333 .333 Risk-free rate 1.34% 1.34% Expected forfeiture rate 0% 0% The unamortized discount related to the Series F warrants was $25,111 at the time of the amendment. The net difference in the fair values of the warrants of $170,500, together with the unamortized discount, were recorded as a loss on extinguishment of debt of $195,611 in the quarter ended December 31, 2019. At June 30, 2020, the note payable was $300,000, with all discounts fully amortized. At September 30, 2019, the note payable was $274,889, which is net of the unamortized discount of $25,111. On May 8, 2019, the Company entered into an additional binding loan agreement and promissory note with William Matlack (the Lender). Under the loan agreement, the Lender loaned the Company $250,000 in the form of a senior unsecured note, with the principal bearing interest at an annual rate of 18%, compounded monthly. The loan is unsecured and the principal and accrued interest will become due for repayment on November 7, 2020, but may be repaid early without penalty. Pursuant to the terms of the May 8, 2019 loan agreement, the Company issued to the Lender 3,543,600 non-transferrable Series I Warrants to purchase common shares of the Company. The exercise price of the warrants is $0.07, with a term of eighteen months, and the warrants contain a provision restricting their exercise in the event any such exercise would cause the Lender to own 10% or more of the Companys outstanding common shares. The relative fair value of the warrants issued in connection with the senior unsecured note was estimated at $94,300, based upon a total fair value as calculated by a Black-Scholes option-pricing model. The relative fair value of the warrants was recorded as a discount of the note, with $15,533 and $31,785 amortized to interest expense in the three and nine months ended June 30, 2020, respectively. At June 30, 2020, the note payable was $224,684, net of the unamortized discount of $25,316. At September 30, 2019, the note payable was $177,366, net of the unamortized discount of $72,634. Warrants Issued During the Year Ended September 30, 2019 Expected volatility 138.5% Stock price on date of the note $0.07 Exercise price $0.07 Expected dividends - Expected term (in years) 1.5 Risk-free rate 2.26% Expected forfeiture rate 0% The accrued interest on the senior unsecured notes payable was $173,975 and $83,107 at June 30, 2020 and September 30, 2019, respectively. Interest expense related to the Senior unsecured notes payable to this related party was $31,541 and $17,009 for the three months ended June 30, 2020 and June 30, 2019, respectively, and $90,868 and $45,837 for the nine months ended June 30, 2020 and June 30, 2019, respectively. The senior unsecured notes payable are senior to all other debt with the exception of the Payment obligation. The notes require that when the Company enters into any other financings, 25% of the proceeds of such financings will be paid toward reduction of the principal and interest accrued on these notes. No such payments have been made by the Company to the Lender, and the Lender has provided a waiver of default on the Notes that would otherwise exist due to these non-payments. |
Note 7 - Common Stock, Warrants
Note 7 - Common Stock, Warrants and Preferred Stock | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 7 - Common Stock, Warrants and Preferred Stock: | NOTE 7 COMMON STOCK, WARRANTS AND PREFERRED STOCK: Common Shares - Private Placement On October 23, 2019, the Company closed a private placement offering of 7,500,000 Units of the Company at a price of US$0.08 per Unit, for total proceeds to the Company of $600,000. Each Unit consisted of one share of common stock of the Company and one-half common share purchase Class J Warrant (each whole such warrant a Warrant), with each Warrant exercisable to acquire an additional share of common stock of the Company at a price of US$0.12 per share until the Warrant expiration date of October 15, 2024. As a result, 7,500,000 shares of common stock of the Company and 3,750,000 Warrants were issued and 3,750,000 shares of common stock were reserved for issuance pursuant to Warrant exercises. A director of the Company, William Matlack, participated in the Offering and subscribed for 7,125,000 Units. The Warrants comprised in Mr. Matlacks Units contain a voluntary restriction on exercise preventing Mr. Matlack from completing any Warrant exercise if such exercise would cause him to beneficially own or control 20% or more of the issued and outstanding common shares of the Company. The fair value of warrants was determined with a Black-Scholes option-pricing model to be $266,500. The assumptions used to calculate fair values are noted in the following table: Series J Warrants Issued October 23, 2019 Expected volatility 149.30% Stock price on date of grant $0.08 Exercise price $0.12 Expected dividends - Expected term (in years) 5 Risk-free rate 1.58% Expected forfeiture rate 0% The fair value of the warrants was charged to additional paid-in capital as a deemed dividend, due to the warrants being issued with common shares and being immediately exercisable. Warrants During the nine-month period ended June 30, 2020, there were 3,750,000 Series J Warrants issued pursuant to the private placement offering and 4,000,000 Series K Warrants issued pursuant solely to extension of the Senior unsecured note payable, with 3,265,500 Series F Warrants canceled in connection with the extension. Additionally, there were 3,367,441 Series H Warrants issued pursuant to PM&Gs participation in a private placement in July 2019 that had not been issued or included in the September 30, 2019 warrants outstanding. On January 31, 2020, 8,000,000 Series B Warrants expired. As a result of these issuances and expirations, there were 45,541,908 and 45,689,967 warrants outstanding as of June 30, 2020 and September 30, 2019, respectively. The warrants expire from April 30, 2021 through October 15, 2024. The weighted average exercise price was $0.17 and $0.21 as of June 30, 2020 and September 30, 2019, respectively. |
Note 8 - Stock-based Awards
Note 8 - Stock-based Awards | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 8 - Stock-based Awards: | NOTE 8 STOCK-BASED AWARDS: On October 29, 2019, the Company granted to directors and management stock options to acquire an aggregate of 2,450,000 common shares of the Companys common stock. The options vested immediately and are exercisable at a price of $0.08 per common share for a period of five years from the date of the grant. Also, in connection with his appointment to the Board of Directors, Mr. Matlack was granted 100,000 options to acquire shares of the Companys common stock. The options have an exercise price of $0.08 per share, vested immediately, and have a term of five years. The fair value of the option awards granted during the three and nine months ended June 30, 2020 was $0 and $161,100, respectively, measured on the date of the grant with a Black-Scholes option-pricing model using the assumptions noted in the following table: Options Granted During the Nine-Months Ended June 30, 2020 Expected volatility 149.5% Stock price on date of grant $0.07 Exercise price $0.08 Expected dividends - Expected term (in years) 5 Risk-free rate 1.66% Expected forfeiture rate 0% During the quarter ended December 31, 2018, the Board of Directors issued 100,000 stock options to the Chief Financial Officer. The fair value of the option award was $5,000 and measured on the date of the grant with a Black-Scholes option-pricing model. During the quarter ended December 31, 2018, 100,000 options were terminated as a result of the resignation of a member of the Board of Directors. During the nine months ended June 30, 2020, 250,000 options held by a third-party vendor expired, and 180,000 options held by directors expired. The following is a summary of options issued and outstanding at June 30, 2020: Options Weighted Average Exercise Price Outstanding at September 30, 2019 3,280,000 $ 0.26 Granted 2,550,000 .08 Expired (180,000) (0.48) Outstanding at December 31, 2019 5,650,000 0.17 Granted - - Expired (250,000) - Outstanding and exercisable at March 31, 2020 5,400,000 $ 0.17 Outstanding and exercisable at June 30, 2020 5,400,000 $ 0.17 The aggregate of options exercisable as of June 30, 2020 had an intrinsic value of nil, based on the closing price of $0.06 per share of the Companys common stock on June 30, 2020. |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 9 - Commitments and Contingencies: | NOTE 9 COMMITMENTS AND CONTINGENCIES: The Company has the following commitments and contingencies: Mineral Exploration A portion of the Companys mining claims on the Companys properties are subject to lease and option agreements with various terms, obligations, and royalties payable in certain circumstances. The Company pays federal and county claim maintenance fees on unpatented claims that are included in the Companys mineral exploration properties. Should the Company continue to explore all of the Companys mineral properties, it expects annual fees to total approximately $202,950 per year in the future, of which $97,587 is for claims maintenance fees for LM LLC. These will be remitted by the Company, due to PM&Gs failure to meet the required minimum work commitment on that property and the resulting future dissolution of LM LLC into the Company (See Note 3). Real Estate Lease Commitments The Companys office in Coeur dAlene, Idaho and its facilities in Eureka, Nevada are rented on a month-to-month basis. |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 10 - Subsequent Events: | NOTE 10 SUBSEQUENT EVENTS: Subsequent to the nine-month period ended June 30, 2020, William Matlack, a related party and member of the Board, presented an invoice to the Board for a total of approximately $13,400 for consulting services provided by Mr. Matlack in a prior period. This amount has not been accrued in any quarter, and has not yet been approved by the Board. |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies: a. Going Concern (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
a. Going Concern | a. Going Concern The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies: b. New Accounting Pronouncements (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
b. New Accounting Pronouncements | b. New Accounting Pronouncements - Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies: c. Principles of Consolidation (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
c. Principles of Consolidation | c. Principles of Consolidation |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies: d. Reclassifications (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
d. Reclassifications | d. Reclassifications |
Note 2 - Summary of Significa_6
Note 2 - Summary of Significant Accounting Policies: e. Reclamation Bonds (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
e. Reclamation Bonds | e. Reclamation Bonds |
Note 2 - Summary of Significa_7
Note 2 - Summary of Significant Accounting Policies: f. Estimates and Assumptions (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
f. Estimates and Assumptions | f. Estimates and Assumptions |
Note 2 - Summary of Significa_8
Note 2 - Summary of Significant Accounting Policies: g. Stock-based Compensation (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
g. Stock-based Compensation | g. Stock-based Compensation The value of common stock awards is determined based upon the closing price of the Companys stock on the grant date of the award. Compensation expense for grants that vest is recognized ratably over the vesting period. The fair value of stock unit or stock awards is determined by the closing price of the Companys common stock on the date of the grant. |
Note 2 - Summary of Significa_9
Note 2 - Summary of Significant Accounting Policies: h. Net Income (Loss) per Share (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
h. Net Income (Loss) per Share | h. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities as of June 30, 2020 and 2019 is as follows: June 30, 2020 June 30, 2019 Stock options 5,400,000 3,280,000 Warrants 45,541,908 45,489,967 Total potential dilution 50,941,908 48,769,967 At June 30, 2020 and 2019, the effect of the Companys common stock equivalents would have been anti-dilutive. Accordingly, only basic EPS is presented. |
Note 2 - Summary of Signific_10
Note 2 - Summary of Significant Accounting Policies: h. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | June 30, 2020 June 30, 2019 Stock options 5,400,000 3,280,000 Warrants 45,541,908 45,489,967 Total potential dilution 50,941,908 48,769,967 |
Note 3 - Property, Mineral Ri_2
Note 3 - Property, Mineral Rights, and Equipment: Property, Plant and Equipment (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Property, Plant and Equipment | Expected Useful Lives (years) June 30, 2020 September 30, 2019 Mineral rights - Eureka - $ 5,949,334 $ 6,033,647 Mineral rights Investment in LLC - 7,560,004 7,560,004 Mineral rights Elder Creek - - 1,218,715 ARO asset - 110,000 110,000 Mineral rights Other - 50,000 50,000 Total mineral rights 13,669,338 14,972,366 Equipment and vehicles 2-5 53,678 53,678 Office equipment and furniture 3-7 70,150 70,150 Land - 51,477 51,477 Total property and equipment 175,305 175,305 Less accumulated depreciation (123,828) (123,828) Property, mineral rights, and equipment, net $ 13,720,815 $ 15,023,843 |
Note 6 - Senior Unsecured Not_2
Note 6 - Senior Unsecured Note Payable - Related Party: Schedule of fair value (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of fair value | Series K Warrants Issued October 4, 2019 Series F Warrants Canceled October 4, 2019 Expected volatility 147.20% 147.20% Stock price on date of grant $0.07 $0.07 Exercise price $0.08 $0.09 Expected dividends - - Expected term (in years) 3.333 .333 Risk-free rate 1.34% 1.34% Expected forfeiture rate 0% 0% |
Note 6 - Senior Unsecured Not_3
Note 6 - Senior Unsecured Note Payable - Related Party: Schedule of fair value of warrants issued during the period (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of fair value of warrants issued during the period | Warrants Issued During the Year Ended September 30, 2019 Expected volatility 138.5% Stock price on date of the note $0.07 Exercise price $0.07 Expected dividends - Expected term (in years) 1.5 Risk-free rate 2.26% Expected forfeiture rate 0% |
Note 7 - Common Stock, Warran_2
Note 7 - Common Stock, Warrants and Preferred Stock: Schedule of fair value assumptions of Series J Warrants Issued (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of fair value assumptions of Series J Warrants Issued | Series J Warrants Issued October 23, 2019 Expected volatility 149.30% Stock price on date of grant $0.08 Exercise price $0.12 Expected dividends - Expected term (in years) 5 Risk-free rate 1.58% Expected forfeiture rate 0% |
Note 8 - Stock-based Awards_ Fa
Note 8 - Stock-based Awards: Fair value assumptions shares issued management directors (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Fair value assumptions shares issued management directors | Options Granted During the Nine-Months Ended June 30, 2020 Expected volatility 149.5% Stock price on date of grant $0.07 Exercise price $0.08 Expected dividends - Expected term (in years) 5 Risk-free rate 1.66% Expected forfeiture rate 0% |
Note 8 - Stock-based Awards_ Sh
Note 8 - Stock-based Awards: Share-based Compensation, Stock Options, Activity (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Share-based Compensation, Stock Options, Activity | Options Weighted Average Exercise Price Outstanding at September 30, 2019 3,280,000 $ 0.26 Granted 2,550,000 .08 Expired (180,000) (0.48) Outstanding at December 31, 2019 5,650,000 0.17 Granted - - Expired (250,000) - Outstanding and exercisable at March 31, 2020 5,400,000 $ 0.17 Outstanding and exercisable at June 30, 2020 5,400,000 $ 0.17 |
Note 2 - Summary of Signific_11
Note 2 - Summary of Significant Accounting Policies: a. Going Concern (Details) | 9 Months Ended |
Jun. 30, 2020 | |
Details | |
Substantial Doubt about Going Concern, Conditions or Events | The Company has incurred losses since its inception. The Company does not have sufficient cash to fund normal operations and meet all of its obligations for the next 12 months without raising additional funds. |
Substantial Doubt about Going Concern, Management's Plans, Substantial Doubt Not Alleviated | The Company’s plans for the long-term return to and continuation as a going concern include financing its future operations through sales of common stock and/or debt and the eventual profitable exploitation of its mining properties. Additionally, the current capital markets and general economic conditions in the United States and Canada may be significant obstacles to raising the required funds. While the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms acceptable to the Company. |
Note 2 - Summary of Signific_12
Note 2 - Summary of Significant Accounting Policies: h. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||
Stock options | 5,400,000 | 3,280,000 |
Warrants | 45,541,908 | 45,489,967 |
Total potential dilution | 50,941,908 | 48,769,967 |
Note 3 - Property, Mineral Ri_3
Note 3 - Property, Mineral Rights, and Equipment: Property, Plant and Equipment (Details) - USD ($) | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2020 | Sep. 30, 2019 | |
Details | |||
Mineral rights Eureka | $ 5,949,334 | $ 6,033,647 | |
Mineral rights Investment LLC | 7,560,004 | 7,560,004 | |
Mineral rights Elder Creek | 0 | 1,218,715 | |
Mineral rights ARO | 110,000 | 110,000 | |
Mineral rights other | 50,000 | 50,000 | |
Mineral rights | 13,669,338 | 14,972,366 | |
Equipment and vehicles | 53,678 | 53,678 | |
Office equipment and furniture | 70,150 | 70,150 | |
Land | 51,477 | 51,477 | |
Property, Plant and Equipment, Gross | 175,305 | 175,305 | |
Depreciation, Depletion and Amortization, Nonproduction | $ (123,828) | ||
Property, mineral rights and equipment, net | $ 13,720,815 | $ 15,023,843 |
Note 3 - Property, Mineral Ri_4
Note 3 - Property, Mineral Rights, and Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||||
Depreciation | $ 0 | $ 0 | ||
Lease Income | $ 26,104 | $ 25,664 | $ 84,313 | $ 76,782 |
Note 4 - Related-party Transa_2
Note 4 - Related-party Transactions (Details) - USD ($) | Oct. 04, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Details | |||
Private placement units sold to related parties | 7,500,000 | ||
Private placement units sold to related parties, value | $ 600,000 | ||
Subscription units sold to related parties | 7,125,000 | ||
Subscription units sold to related parties, value | $ 570,000 | ||
Related Party Transaction, Description of Transaction | In connection with the Definitive Agreement with AGEI for the purchase of two joint venture interests during the fiscal year ended September 30, 2018, Mr. Donald J. McDowell and Mr. Dave Mathewson were appointed to the Company’s Board of Directors on June 21, 2018. | ||
Stock options issued to officer | 100,000 | ||
Stock options issued to new director | 100,000 | ||
Stock options issued to officer, value | $ 5,000 | ||
Private placement units sold to officers | 1,062,500 | ||
Private placement units sold to officers, value | $ 85,000 |
Note 5 - Payment Obligation (De
Note 5 - Payment Obligation (Details) - USD ($) | Sep. 12, 2017 | Jun. 30, 2020 | Sep. 30, 2019 |
Details | |||
Debt Instrument, Description | On September 12, 2017, the Company entered into an agreement (the “Payment Agreement”) with a creditor (the “Creditor”) to pay by way of a payment plan an existing obligation of $250,000 (the “Payment Obligation”) related to a potential corporate transaction in 2015 that was not completed | ||
Payment obligation | $ 150,239 | $ 178,533 |
Note 6 - Senior Unsecured Not_4
Note 6 - Senior Unsecured Note Payable - Related Party (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2018 | Oct. 04, 2019 | Sep. 30, 2019 | |
Proceeds from Unsecured Notes Payable | $ 300,000 | |||||||
Series F Warrants Issued | 3,265,500 | |||||||
Relative fair value of warrants issued, Series F | $ 110,900 | |||||||
Series K Warrants Issued | 4,000,000 | |||||||
Relative fair value of warrants issued, Series K | $ 227,600 | |||||||
Relative fair value of warrants canceled, Series F | $ 57,100 | |||||||
Unamortized Debt Issuance Expense | $ 25,111 | |||||||
Warrants issued with debt | 170,500 | $ 94,300 | ||||||
Loss on extinguishment of debt - related party | $ 0 | 195,611 | 0 | $ 195,611 | $ 0 | |||
Notes Payable | 300,000 | 300,000 | $ 274,889 | |||||
Unamortized Debt Issuance Expense | $ 25,111 | |||||||
Proceeds from senior unsecured notes payable and warrants | $ 250,000 | |||||||
Series I Warrants Issued | 3,543,600 | |||||||
Relative fair value of warrants issued, Series I | $ 94,300 | |||||||
224,684 | 224,684 | 0 | ||||||
Debt Instrument, Unamortized Discount | 25,316 | 25,316 | 72,634 | |||||
Accrued interest - related party | 173,975 | 173,975 | 83,107 | |||||
Accrued interest - related party | 90,868 | 0 | ||||||
Senior unsecured notes payable | ||||||||
177,366 | ||||||||
Accrued interest - related party | 173,975 | 173,975 | $ 83,107 | |||||
Accrued interest - related party | $ 31,541 | $ 17,009 | $ 90,868 | $ 45,837 |
Note 6 - Senior Unsecured Not_5
Note 6 - Senior Unsecured Note Payable - Related Party: Schedule of fair value (Details) | 9 Months Ended |
Jun. 30, 2020$ / shares | |
Series K issued | |
Expected volatility rate | 147.20% |
Stock price on date of grant | $ 0.07 |
Exercise price | $ 0.08 |
Expected term simplified | 3.333 |
Risk free interest rate | 1.34% |
Expected forfeiture rate | 0.00% |
Series F canceled | |
Expected volatility rate | 147.20% |
Stock price on date of grant | $ 0.07 |
Exercise price | $ 0.09 |
Expected term simplified | .333 |
Risk free interest rate | 1.34% |
Expected forfeiture rate | 0.00% |
Note 7 - Common Stock, Warran_3
Note 7 - Common Stock, Warrants and Preferred Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2020 | Sep. 30, 2019 | |
Units sold | $ 7,500,000 | ||
Units sold net proceeds | $ 600,000 | ||
Common stock and warrants issued for cash | 7,500,000 | ||
Subscription units sold to related parties | 7,125,000 | ||
Warrants and Rights Outstanding | $ 45,541,908 | $ 45,689,967 | |
Series J Issued | |||
Warrants issued | 3,750,000 | ||
Warrants issued fair value | $ 266,500 | ||
Issued during the year | |||
Common stock reserved for issuance pursuant to Warrant exercises | 3,750,000 |
Note 7 - Common Stock, Warran_4
Note 7 - Common Stock, Warrants and Preferred Stock: Schedule of fair value assumptions of Series J Warrants Issued (Details) - Series J Issued | 9 Months Ended |
Jun. 30, 2020$ / shares | |
Expected volatility rate, maximum | 149.30% |
Stock price on date of grant | $ 0.08 |
Exercise price | $ 0.12 |
Expected term simplified minimum | 5 |
Risk free interest rate | 1.58% |
Expected forfeiture rate | 0.00% |
Note 8 - Stock-based Awards (De
Note 8 - Stock-based Awards (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Details | |||
Stock options issued to directors and management | 2,450,000 | ||
Stock options issued to new director | 100,000 | ||
Fair value of options issued | $ 0 | $ 161,100 | |
Stock options issued to officer | 100,000 | ||
Stock options issued to officer, value | $ 5,000 | ||
Stock options terminated | 100,000 |
Note 8 - Stock-based Awards_ _2
Note 8 - Stock-based Awards: Fair value assumptions shares issued management directors (Details) - Management and Directors | 9 Months Ended |
Jun. 30, 2020$ / shares | |
Expected volatility rate, maximum | 149.50% |
Stock price on date of grant | $ 0.07 |
Exercise price | $ 0.08 |
Expected term simplified minimum | 5 |
Risk free interest rate | 1.66% |
Expected forfeiture rate | 0.00% |
Note 8 - Stock-based Awards_ _3
Note 8 - Stock-based Awards: Share-based Compensation, Stock Options, Activity (Details) - $ / shares | 9 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Details | |||||
Outstanding | 5,400,000 | 5,400,000 | 5,650,000 | 3,280,000 | |
Weighted Average Exercise Price, Outstanding | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.26 | |
Granted | 2,550,000 | ||||
Weighted Average Exercise Price, Granted | $ 0.08 | ||||
Expired | (250,000) | (180,000) | |||
Weighted Average Exercise Price, Expired | $ (0.48) |
Note 9 - Commitments and Cont_2
Note 9 - Commitments and Contingencies (Details) | 9 Months Ended |
Jun. 30, 2020 | |
Mining Claims | |
Other Commitments, Description | A portion of the Company’s mining claims on the Company’s properties are subject to lease and option agreements with various terms, obligations, and royalties payable in certain circumstances. |
Claim Maintenance Fees | |
Other Commitments, Description | The Company pays federal and county claim maintenance fees on unpatented claims that are included in the Company’s mineral exploration properties. Should the Company continue to explore all of the Company’s mineral properties, it expects annual fees to total approximately $202,950 per year in the future, of which $97,587 is for claims maintenance fees for LM LLC. These will be remitted by the Company, due to PM&G’s failure to meet the required minimum work commitment on that property and the resulting future dissolution of LM LLC into the Company (See Note 3). |
Real Estate Commitments | |
Other Commitments, Description | The Company’s office in Coeur d’Alene, Idaho and its facilities in Eureka, Nevada are rented on a month-to-month basis. |
Note 10 - Subsequent Events (De
Note 10 - Subsequent Events (Details) | 9 Months Ended |
Jun. 30, 2020 | |
Details | |
Subsequent Event, Description | Subsequent to the nine-month period ended June 30, 2020, William Matlack, a related party and member of the Board, presented an invoice to the Board for a total of approximately $13,400 for consulting services provided by Mr. Matlack in a prior period |