Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2020 | Jan. 04, 2020 | |
Details | ||
Registrant CIK | 0001445942 | |
Fiscal Year End | --08-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-53482 | |
Entity Registrant Name | TEXAS MINERAL RESOURCES CORP. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-0294969 | |
Entity Address, Address Line One | 539 El Paso Street | |
Entity Address, City or Town | Sierra Blanca | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79851 | |
Entity Address, Address Description | Address of Principal Executive Offices | |
City Area Code | 915 | |
Local Phone Number | 369-2133 | |
Phone Fax Number Description | Registrant’s Telephone Number, including Area Code | |
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 Common Stock, Shares Outstanding | 71,730,101 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 2,615,617 | $ 2,746,451 |
Prepaid expenses and other current assets | 145,659 | 183,199 |
Total current assets | 2,761,276 | 2,929,650 |
Mineral properties, net | 354,234 | 354,234 |
Deposits | 7,500 | 7,500 |
TOTAL ASSETS | 3,123,010 | 3,291,384 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 360,869 | 502,427 |
Advances due to related party | 596,901 | 591,401 |
Total current liabilities | 957,770 | 1,093,828 |
Total liabilities | 957,770 | 1,093,828 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, Value | 0 | 0 |
Common Stock, Value | 713,852 | 713,233 |
Additional paid-in capital | 40,683,595 | 40,376,847 |
Accumulated deficit | (39,232,207) | (38,892,524) |
Total shareholders' equity | 2,165,240 | 2,197,556 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 3,123,010 | $ 3,291,384 |
BALANCE SHEETS - Parenthetical
BALANCE SHEETS - Parenthetical - $ / shares | Nov. 30, 2020 | Aug. 31, 2020 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 71,385,214 | 71,323,278 |
Common Stock, Shares, Outstanding | 71,385,214 | 71,323,278 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
OPERATING EXPENSES | ||
Exploration costs | $ 65,778 | $ 1,033 |
General and administrative expenses | 325,277 | 89,082 |
Total operating expenses | 391,055 | 90,115 |
LOSS FROM OPERATIONS | (391,055) | (90,115) |
OTHER INCOME (EXPENSE) | ||
Interest expense | 0 | (3,507) |
Grant income | 50,000 | 0 |
Other income (expense) | 1,372 | 0 |
Total other income (expense) | 51,372 | (3,507) |
NET LOSS | $ (339,683) | $ (93,622) |
Net loss per share: | ||
Basic and diluted net loss per share | $ 0 | $ 0 |
Basic and diluted | 71,346,419 | 56,218,132 |
STATEMENTS OF SHAREHOLDERS' EQU
STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | $ 0 | $ 100 | $ (100) | $ 0 | $ 0 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | 10,000 | |||
Shares Outstanding, Starting at Aug. 31, 2019 | 0 | 56,204,994 | |||
Equity Balance, Starting at Aug. 31, 2019 | $ 0 | $ 562,050 | 37,940,809 | (37,751,695) | 751,164 |
Stock Issued During Period, Value, Issued for Services | $ 0 | $ 135 | 4,865 | 0 | 5,000 |
Stock Issued During Period, Shares, Issued for Services | 0 | 13,514 | |||
Net Income (Loss) | $ 0 | $ 0 | 0 | (93,622) | (93,622) |
Shares Outstanding, Ending at Nov. 30, 2019 | 0 | 56,228,508 | |||
Equity Balance, Ending at Nov. 30, 2019 | $ 0 | $ 562,285 | 37,945,574 | (37,845,317) | 662,542 |
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 0 | 190,367 | 0 | 190,367 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | |||
Stock Issued During Period, Value, Other | $ 0 | $ 619 | 91,881 | 0 | 92,500 |
Stock Issued During Period, Shares, Other | 0 | 61,936 | |||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | $ 0 | $ 0 | 24,500 | 0 | 24,500 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | 0 | |||
Shares Outstanding, Starting at Aug. 31, 2020 | 0 | 71,323,278 | |||
Equity Balance, Starting at Aug. 31, 2020 | $ 0 | $ 713,233 | 40,376,847 | (38,892,524) | 2,197,556 |
Net Income (Loss) | $ 0 | $ 0 | 0 | (339,683) | (339,683) |
Shares Outstanding, Ending at Nov. 30, 2020 | 0 | 71,323,278 | |||
Equity Balance, Ending at Nov. 30, 2020 | $ 0 | $ 713,852 | $ 40,683,595 | $ (39,232,207) | $ 2,165,240 |
STATEMENTS OF CASHFLOWS
STATEMENTS OF CASHFLOWS - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (339,683) | $ (93,622) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Discount accretion on note payable | 0 | 3,507 |
Stock based compensation | 190,367 | 5,000 |
Changes in current assets and liabilities: | ||
Prepaid expenses and other current assets | 37,540 | (9,450) |
Accounts payable and accrued liabilities | (49,058) | (380,682) |
Net cash used in operating activities | (160,834) | (475,247) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on note payable | 0 | (37,809) |
Payments on advances due to related party | 0 | (4,000) |
Advances from related parties | 5,500 | 0 |
Proceeds from exercise of common stock warrants | 24,500 | 0 |
Net cash provided by (used in) financing activities | 30,000 | (41,809) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (130,834) | (517,056) |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 2,746,451 | 1,824,546 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 2,615,617 | 1,307,490 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid | 0 | 0 |
Taxes paid | 0 | 0 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Common stock issued as payment of accrued expenses | $ 92,500 | $ 0 |
NOTE 1 - BASIS OF PRESENTATION
NOTE 1 - BASIS OF PRESENTATION | 3 Months Ended |
Nov. 30, 2020 | |
Notes | |
NOTE 1 - BASIS OF PRESENTATION | NOTE 1 BASIS OF PRESENTATION The accompanying unaudited interim financial statements of Texas Mineral Resources Corp. (we, us, our, the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (SEC), and should be read in conjunction with the audited financial statements and notes thereto contained in our annual report on Form 10-K, for the year ended August 31, 2020, dated November 30, 2020 as filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2020 as reported in our annual report on Form 10-K, have been omitted. Grant Income Grants received from government and other agencies in advance of a specific project are deferred and recognized as other income in the statements of operations in the period they are earned and the related project costs are incurred. |
NOTE 2 - RECENT ACCOUNTING PRON
NOTE 2 - RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Nov. 30, 2020 | |
Notes | |
NOTE 2 - RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 2 RECENT ACCOUNTING PRONOUNCEMENTS In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-06, Debt Debit with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entitys Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entitys Own Equity. |
NOTE 3 - MINERAL PROPERTIES
NOTE 3 - MINERAL PROPERTIES | 3 Months Ended |
Nov. 30, 2020 | |
Notes | |
NOTE 3 - MINERAL PROPERTIES | NOTE 3 MINERAL PROPERTIES August 2010 Lease On August 17, 2010, the Company executed a new mining lease with the Texas General Land Office covering Sections 7 and 18 of Township 7, Block 71 and Section 12 of Block 72, covering approximately 860 acres at Round Top Mountain in Hudspeth County, Texas. The mining lease issued by the Texas General Land Office gives the Company the right to explore, produce, develop, mine, extract, mill, remove, and market beryllium, uranium, rare earth elements, all other base and precious metals, industrial minerals and construction materials and all other minerals excluding oil, gas, coal, lignite, sulfur, salt, and potash. The term of the lease is nineteen years so long as minerals are produced in paying quantities. Under the terms of the lease, the Company will pay the State of Texas a total lease bonus of $142,518. The Company paid $44,718 upon the execution of the lease and will pay the remaining $97,800 upon submission of a supplemental plan of operations to conduct mining. Upon sale of any minerals removed from Round Top, the Company will pay the State of Texas a $500,000 minimum advance royalty. Thereafter, if paying quantities of minerals are obtained, the Company will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals removed and sold. If paying quantities have not been obtained, the Company may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule: Per Acre Amount Total Amount September 2, 2020 2024 $ 150 $ 134,155 September 2, 2025 2029 200 178,873 In August 2020, the Company paid a delay rental to the State of Texas in the amount of $134,155. November 2011 Lease On November 1, 2011, the Company executed a mining lease with the State of Texas covering approximately 90 acres of land that is adjacent to the August 2010 Lease. Under the lease, the Company paid the State of Texas a lease bonus of $20,700 upon the execution of the lease. Upon the sale of minerals removed from Round Top, the Company will pay the State of Texas a $50,000 minimum advance royalty. Thereafter, if paying quantities of minerals are obtained, the Company will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals. If paying quantities have not been obtained, the Company may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule: Per Acre Amount Total Amount November 1, 2020 2024 $ 150 $ 13,500 November 1, 2025 2029 200 18,000 In August 2020, the Company paid a delay rental to the State of Texas of $13,500. March 2013 Lease On March 6, 2013, the Company purchased the surface lease at the Round Top Project, known as the West Lease, from the Southwest Wildlife and Range Foundation (since renamed the Rio Grande Foundation) for $500,000 cash and 1,063,830 shares of common stock valued at $500,000. The Company also agreed to support the Foundation through an annual payment of $45,000 for ten years to support conservation efforts within the Rio Grande Basin, particularly Lake Amistad, a large and well-known fishing lake near Del Rio, Texas. In connection with the January 2019 settlement with the Foundation, the balance was paid off as of August, 2020. The West Lease comprises approximately 54,990 acres. Most importantly, the purchase of the surface lease provides the Company unrestricted surface access for the potential development and mining of the Round Top Project. October 2014 Surface Option and Water Lease On October 29, 2014, the Company announced the execution of agreements with the Texas General Land Office securing the option to purchase the surface rights covering the potential Round Top project mine and plant areas and, separately, a lease to develop the water necessary for the potential Round Top project mine operations. The option to purchase the surface rights covers approximately 5,670 acres over the mining lease and the additional acreage adequate to site all potential heap leaching and processing operations as currently anticipated by the Company. The Company may exercise the option for all or part of the option acreage at any time during the remaining sixteen-year primary term of the mineral lease. The option can be maintained through annual payments of $10,000. The purchase price will be the appraised value of the surface at the time of option exercise. All annual payments have been made as of the date of this filing. The ground water lease secures the right to develop the ground water within a 13,120-acre lease area located approximately 4 miles from the Round Top deposit. The lease area contains five existing water wells. It is anticipated that all potential water needs for the Round Top project mine operations would be satisfied by the existing wells covered by this water lease. This lease terms include an annual minimum production payment of $5,000 prior to production of water for the operation. After initiation of production, the Company will pay $0.95 per thousand gallons or $20,000 annually, whichever is greater. This lease remains in effect so long as the mineral lease is in effect. The minimum production payment for all fiscal years have been made as of the date of this filing. Capital Stock Our authorized capital stock consists of 100,000,000 shares of common stock, with a par value of $0.01 per share, and 10,000,000 preferred shares with a par value of $0.001 per share. All shares of common stock have equal voting rights and, when validly issued and outstanding, are entitled to one non-cumulative vote per share in all matters to be voted upon by shareholders. The shares of common stock have no pre-emptive, subscription, conversion or redemption rights and may be issued only as fully paid and non-assessable shares. Holders of the common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by our Board of Directors (our Board) out of funds legally available. In the event of a liquidation, dissolution or winding up of the affairs of the Corporation, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment or provision for all liabilities and any preferential liquidation rights of any preferred stock then outstanding. In January 2020, the Company entered into three separate consulting agreements for total consideration of 699,999 shares of common stock (233,333 per agreement). The common stock underlying the agreements had a total value of $448,000, based on the $0.64 quoted market price of the common stock on the date the consulting agreements were reached. The right to receive the common stock is subject to ratable vesting over a 24-month period and at November 30, 2020, 320,833 shares had vested and 87,501 had been issued. The Company recognized $56,000 of compensation expense under these consulting agreements during the three months ended November 30, 2020 and included the expense in general and administrative expenses. The consultants have requested that the Company hold the remaining shares issuable under the consulting agreements in trust to allow the consultants to request their shares as they vest. In October 2020, the Company issued 61,936 shares of common stock to Directors as payment for accrued fees totaling $92,500 earned in June through August 2020. During the quarter ended November 30, 2020, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $52,889 for directors fees earned during the quarter. The Company issued the related 40,042 shares of common stock in December 2020. During the quarter ended November 30, 2020, the Company granted a total of 53,500 stock options with a fair value of $81,468 on the date of grant to a consultant. The fair value of the options was determined using the Black-Scholes option-pricing model. The weighted average assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.28% (ii) estimated volatility of 208.05% (iii) dividend yield of 0.00% and (iv) expected life of all options of 4.6 years. The Company recognized the full $81,468 as compensation expense during the three months ended November 30, 2020. During the three months ended November 30, 2020, the holders of 70,000 common stock warrants with an exercise price of $0.35 per share, exercised such options for total consideration of $24,500. The shares of common stock underlying the warrants were unissued, with such shares issued to the holders in December 2020. The Company had 71,385,214 shares of common stock outstanding as of November 30, 2020. |
NOTE 3 - MINERAL PROPERTIES_ Sc
NOTE 3 - MINERAL PROPERTIES: Schedule of September 2011 Lease (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Tables/Schedules | |
Schedule of September 2011 Lease | Per Acre Amount Total Amount September 2, 2020 2024 $ 150 $ 134,155 September 2, 2025 2029 200 178,873 |
NOTE 3 - MINERAL PROPERTIES_ _2
NOTE 3 - MINERAL PROPERTIES: Schedule of November 2011 Lease (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Tables/Schedules | |
Schedule of November 2011 Lease | Per Acre Amount Total Amount November 1, 2020 2024 $ 150 $ 13,500 November 1, 2025 2029 200 18,000 |
NOTE 3 - MINERAL PROPERTIES_ Ca
NOTE 3 - MINERAL PROPERTIES: Capital Stock (Details) - $ / shares | Nov. 30, 2020 | Aug. 31, 2020 |
Details | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares, Outstanding | 71,385,214 | 71,323,278 |