Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 14, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | Thunder Mountain Gold Inc | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000711034 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Stock, Shares Outstanding | 57,633,879 | ||
Entity Public Float | $ 5,709,944 | ||
Trading Symbol | thmg |
Thunder Mountain Gold, Inc. Con
Thunder Mountain Gold, Inc. Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 3,710 | $ 36,454 | |
Prepaid expenses and other assets | 29,425 | 28,473 | |
Total current assets | 33,135 | 64,927 | |
Property and Equipment: | |||
Land | 280,333 | 280,333 | |
Equipment, net of accumulated depreciation of $124,384 and $75,959, respectively | 58,221 | 106,646 | |
Total property and equipment | 338,554 | 386,979 | |
Mineral interests | [1] | 479,477 | 479,477 |
Total assets | 851,166 | 931,383 | |
Current liabilities: | |||
Accounts payable and other accrued liabilities | 138,092 | 92,311 | |
Accrued related party liability | [2] | 241,685 | 181,313 |
Accrued interest payable to related parties | [2] | 52,787 | 36,949 |
Deferred compensation | [3] | 1,041,500 | 871,500 |
Related parties notes payable, net of discount | [2] | 126,576 | 217,688 |
Total current liabilities | 1,600,640 | 1,399,761 | |
Accrued reclamation costs | 65,000 | 65,000 | |
Total liabilities | 1,665,640 | 1,464,761 | |
Commitments and Contingencies | [4] | 0 | 0 |
Stockholders' equity (deficit): | |||
Preferred stock; $0.0001 par value, 5,000,000 shares authorized; no shares issued or outstanding | 0 | 0 | |
Common stock; $0.001 par value; 200,000,000 shares authorized, 57,645,579 and 55,095,579, respectively shares issued and outstanding | 57,646 | 55,096 | |
Additional paid-in capital | 5,811,988 | 5,457,538 | |
Less: 11,700 shares of treasury stock, at cost | (24,200) | (24,200) | |
Accumulated deficit | (6,833,610) | (6,195,923) | |
Total Thunder Mountain Gold, Inc stockholders' equity (deficit) | (988,176) | (707,489) | |
Noncontrolling interest in Owyhee Gold Trust | [1] | 173,702 | 174,111 |
Total stockholders' equity (deficit) | (814,474) | (533,378) | |
Total liabilities and stockholders' equity (deficit) | $ 851,166 | $ 931,383 | |
[1] | Note 3 | ||
[2] | Note 5 | ||
[3] | Note 6 | ||
[4] | Notes 2 and 3 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of financial position | ||
Preferred Stock, Par Value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 57,645,579 | 55,095,579 |
Common Stock, Shares Outstanding | 57,645,579 | 55,095,579 |
Accumulated depreciation | $ 124,384 | $ 75,959 |
Thunder Mountain Gold, Inc. C_2
Thunder Mountain Gold, Inc. Consolidated Statements of Operations - USD ($) | 11 Months Ended | 12 Months Ended |
Dec. 03, 2018 | Dec. 31, 2017 | |
Operating expenses: | ||
Exploration | $ 205,814 | $ 193,067 |
Legal and accounting | 117,802 | 63,393 |
Management and administrative | 235,752 | 360,464 |
Loss on sale of equipment | 1,021 | |
Depreciation | 48,425 | 70,251 |
Total operating expenses | 607,793 | 688,196 |
Other income (expense): | ||
Interest expense, related parties | (28,739) | (23,672) |
Miscellaneous income | 4,298 | 1,200 |
Foreign currency exchange gain (loss) | (453) | (40) |
Total other income (expense) | (24,894) | (22,512) |
Net Loss | (632,687) | (710,708) |
Net Income - noncontrolling interest in Owyhee Gold Trust | 409 | |
Net Loss - Thunder Mountain Gold, Inc. | $ (637,687) | $ (711,117) |
Net Loss per common share-basic and diluted | $ (0.01) | $ (0.01) |
Weighted average common shares outstanding-basic and diluted | 57,208,045 | 54,868,182 |
Thunder Mountain Gold, Inc. C_3
Thunder Mountain Gold, Inc. Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | Common Stock Shares | Common Stock Amount | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Non-Controlling Interest in OGT | Total |
Beginning balance, value at Dec. 31, 2016 | $ 54,681 | $ 5,350,513 | $ (24,200) | $ (5,484,806) | $ 178,702 | $ 74,890 | |
Beginning balance, shares at Dec. 31, 2016 | 54,680,579 | ||||||
Shares issued for exercise of stock options, value | 415 | 40,135 | 40,550 | ||||
Shares issued for exercise of stock options, stock | 415,000 | ||||||
Stock options issued for services | 53,557 | 53,557 | |||||
Beneficial conversion feature on related party note payable | 13,333 | 13,333 | |||||
Distribution to noncontrolling interest | (5,000) | (5,000) | |||||
Net income (loss) | (711,117) | 409 | (710,708) | ||||
Ending balance, value at Dec. 31, 2017 | 55,096 | 5,457,538 | (24,200) | (6,195,923) | 174,111 | (533,378) | |
Ending balance, shares at Dec. 31, 2017 | 55,095,579 | ||||||
Shares and warrants issued for cash, value | 1,807 | 251,181 | 252,988 | ||||
Shares and warrants issued for cash, stock | 1,807,057 | ||||||
Shares and warrants issued for payment of related parties notes payable and accrued interest, value | 743 | 103,269 | 104,012 | ||||
Shares and warrants issued for payment of related parties notes payable and accrued interest, stock | 742,943 | ||||||
Distribution to noncontrolling interest | (5,409) | (5,409) | |||||
Net income (loss) | (637,687) | 5,000 | (632,687) | ||||
Ending balance, value at Dec. 31, 2018 | $ 57,646 | $ 5,811,988 | $ (24,200) | $ (6,833,610) | $ 173,702 | $ (814,474) | |
Ending balance, shares at Dec. 31, 2018 | 57,645,579 |
Thunder Mountain Gold, Inc. C_4
Thunder Mountain Gold, Inc. Consolidated Statements of Cash Flows - USD ($) | 11 Months Ended | 12 Months Ended | |
Dec. 03, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss | $ (632,687) | $ (710,708) | |
Adjustments to reconcile net loss to net cash used by operating activities: | |||
Depreciation | 48,425 | 70,251 | |
Loss on sale of equipment | 1,021 | ||
Stock options issued for services | 53,557 | ||
Amortization of related party notes payable discount | 8,889 | 4,445 | |
Change in: | |||
Prepaid expenses and other assets | (952) | 5,430 | |
Accounts payable and other accrued liabilities | 45,781 | 5,498 | |
Accrued related party liability | 60,372 | ||
Accrued interest payable to related parties | 19,849 | 19,226 | |
Deferred compensation | 170,000 | 303,000 | |
Net cash used by operating activities | (280,323) | (248,280) | |
Cash flows from investing activities: | |||
Proceeds from sale of equipment | 41,000 | ||
Net cash provided by investing activities | 41,000 | ||
Cash flows from financing activities: | |||
Proceeds from sale of common stock | 252,988 | ||
Proceeds from exercise of common stock options | 20,550 | ||
Distribution to noncontrolling interest | $ (5,409) | (5,000) | |
Borrowing on related parties notes payable | 120,000 | ||
Net cash provided by financing activities | 247,579 | 135,550 | |
Net increase (decrease) in cash and cash equivalents | (32,744) | (71,730) | |
Cash and cash equivalents, beginning of year | 36,454 | $ 36,454 | 108,184 |
Cash and cash equivalents, end of year | 3,710 | 36,454 | |
Noncash financing and investing activities: | |||
Common stock and warrants issued for payment of related parties notes payable and accrued interest | $ 104,012 | ||
Stock options exercised in satisfaction of related parties notes payable | 20,000 | ||
Beneficial conversion feature on related party convertible notes payable | $ 13,333 |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies and Business Operations | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
1. Summary of Significant Accounting Policies and Business Operations | 1. Summary of Significant Accounting Policies and Business Operations Business Operations Thunder Mountain Gold, Inc. (Thunder Mountain or the Company) was originally incorporated under the laws of the State of Idaho on November 9, 1935, under the name of Montgomery Mines, Inc. In April 1978, the Montgomery Mines Corporation was obtained by a group of the Thunder Mountain property holders and changed its name to Thunder Mountain Gold, Inc., with the primary goal to further develop their holdings in the Thunder Mountain Mining District, located in Valley County, Idaho. Thunder Mountain Gold, Inc. takes its name from the Thunder Mountain Mining District, where its principal lode mining claims were located. For several years, the Companys activities were restricted to maintaining its property position and exploration activities. During 2005, the Company sold its holdings in the Thunder Mountain Mining District. During 2007, the Company acquired the South Mountain Mines property in southwest Idaho and initiated exploration activities on that property, which continue today. Basis of Presentation and Going Concern The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company has historically incurred losses and does not have sufficient cash at December 31, 2018 to fund normal operations for the next 12 months. The Company has no recurring source of revenue and its ability to continue as a going concern is dependent on the Companys ability to raise capital to fund its future exploration and working capital requirements. The Companys plans for the long-term continuation as a going concern include financing the Companys future operations through sales of its 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 are significant obstacles to raising the required funds. On February 27, 2019, the Company entered into an Option Agreement, (the BeMetals Option Agreement) with BeMetals Corp Under the terms of the BeMetals Option Agreement, BMET USA will be entitled to purchase 100% of the issued and outstanding shares of South Mountain Mines, Inc. (SMMI) from Thunder Mountain Resources, Inc. (TMRI), both wholly owned subsidiaries of the Company. The term of the agreement is for two years with BeMetals completing a preliminary economic assessment ("PEA") completed by a mutually agreed third-party engineering firm. This agreement requires payments to the Company of $850,000 over its term. In the event that BeMetals decides not to proceed with the South Mountain Project following, BeMetals will not be obligated to make any additional payments. 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 was 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. Reclassifications Certain reclassifications have been made to conform prior periods data to the current presentation. These reclassifications have no effect on previously reported operations, stockholders equity (deficit) or cash flows. Principles of Consolidation The consolidated financial statements include the accounts of the Company; its wholly owned subsidiaries, Thunder Mountain Resources, Inc. (TMRI) and South Mountain Mines, Inc. (SMMI); and a company in which the Company has majority control, Owyhee Gold Trust, LLC (OGT). Intercompany accounts are eliminated in consolidation. The Company has established 75% ownership and full management of OGT. Thus, OGTs financial information is included 100% in the Companys consolidated financial statements as of December 31, 2016. The Companys consolidated financial statements reflect the other investors 25% non-controlling, capped interest in OGT. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the 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 include the carrying value of properties and mineral interests, environmental remediation liabilities, deferred tax assets, and stock-based compensation. Managements estimates and assumptions are based on historical experience and other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. Cash and cash equivalents For the purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be a cash equivalent. Income Taxes The Company recognizes deferred income tax liabilities or assets at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized. Fair Value Measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no financial assets or liabilities that are adjusted to fair value on a recurring basis. Financial Instruments The Companys financial instruments include cash and cash equivalents and related party notes payable the carrying value of which approximates fair value based on the nature of those instruments. Mineral Interests The Company capitalizes costs for acquiring mineral interests and expenses costs to maintain mineral rights and leases as incurred. Exploration costs are expensed in the period in which they occur. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method based on periodic estimates of ore reserves. Mineral properties are periodically assessed for impairment of value and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. Investments in Joint Venture The Companys accounting policy for joint ventures is as follows: The Company uses the cost method when it does not have joint control or significant influence in a joint venture. Under the cost method, these investments are carried at cost. If other than temporary impairment in value is determined, it would then be charged to current net income or loss. If the Company enters into a joint venture in which there is joint control between the parties or the Company has significant influence, the equity method is utilized whereby the Companys share of the ventures earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. If other than temporary impairment in value is determined, it would then be charged to current net income or loss. In a joint venture where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is typically consolidated with the presentation of non-controlling interest. In determining whether significant influences exist, the Company considers its participation in policy-making decisions and its representation on the ventures management committee. See Note 3 regarding the Companys investment in Owyhee Gold Trust, LLC. Reclamation and Remediation The Companys operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company would record the fair value of an asset retirement obligation as a liability in the period in which the Company incurred a legal obligation for the retirement of tangible long-lived assets. A corresponding asset would also be recorded and depreciated over the life of the asset. After the initial measurement of the asset retirement obligation, the liability is adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. Determination of any amounts recognized upon adoption is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred, and they are reasonably estimable. Such costs are based on managements estimate of amounts expected to be incurred when the remediation work is performed. Share-Based Compensation Share-based payments to employees and directors, including grants of employee stock options, are measured at fair value and expensed in the statement of operations over the vesting period. Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update provides guidance on classification for cash receipts and payments related to eight specific issues. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The adoption of this update on January 1, 2018 had no impact on the Companys consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The adoption of this update on January 1, 2018 had no impact on the Companys consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will apply the provisions of the update to potential future acquisitions occurring after January 1, 2018. 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. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. Net Income (Loss) Per Share The Company is required to have dual presentation of basic earnings per share (EPS) and diluted EPS. Basic EPS is computed as net income divided by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including options and warrants to purchase the Companys common stock. For year ended December 31, 2018 2017 Stock options 3,710,000 4,700,000 Warrants 1,275,000 666,667 Total possible dilution 4,985,000 5,366,667 |
2. Commitments
2. Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
2. Commitments | 2. Commitments The Company has two lease arrangements with land owners that own land parcels adjacent to the Companys South Mountain patented and unpatented mining claims. The leases were originally for a seven-year period, with annual payments of $20 per acre. The leases were renewed for an additional 10 years at $30 per acre paid annually; committed payments are listed in the table below. The lease payments have no work requirements. Annual Payment Acree Lease (June) $ 3,390 Lowry Lease (October) 11,280 Total $14,670 The Company has 78 unpatented claims (1,600 acres) in the Trout Creek area and 21 unpatented claims in the South Mountain area. The claim fees are paid on these unpatented claims annually as follows: Target Area 2018 Trout Creek -State of Nevada $12,090 Trout Creek -Lander County 940 South Mountain-State of Idaho 3,255 Total $ 16,285 |
3. South Mountain Project
3. South Mountain Project | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
3. South Mountain Project | 3. South Mountain Project The Companys wholly-owned subsidiary SMMI is the sole manager of the South Mountain Project in its entirety through a separate Mining Lease with Option to Purchase (Lease Option) with the Companys majority-owned subsidiary OGT. The Lease Option includes a capped $5 million less, net returns royalties paid through the date of exercise. The Lease Option expires in November 2026. If SMMI exercises the option, the option payment of $5 million less advance royalties will be distributed 100% by OGT to OGTs minority member. Under the Lease Option, SMMI pays an advance $5,000 net returns royalty to OGT annually on November 4 which is distributed to OGTs minority member. OGTs financial information is included 100% in the Companys consolidated financial statements and reflects its minority members non-controlling interest. Changes in the non-controlling interest equity balance is as follows: Years Ended December 31, 2018 2017 Balance at beginning of period $ 174,111 $ 178,702 Distribution to non-controlling interest (5,409) (5,000) Net income (loss) attributable to noncontrolling interest 5,000 409 Balance at end of period $ 173,702 $ 174,111 |
4. Property and Equipment
4. Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
4. Property and Equipment | 4. Property and Equipment The Companys property and equipment are as follows: December 31, 2018 December 31, 2017 Vehicles $ 22,441 $ 22,441 Buildings 65,071 65,071 Construction Equipment 36,447 36,447 Mining Equipment 58,646 58,646 182,605 182,605 Accumulated Depreciation (124,384) (75,959) 58,221 106,646 Land 280,333 280,333 Total Property and Equipment $ 338,554 $ 386,979 |
5. Related Parties Notes Payabl
5. Related Parties Notes Payable | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
5. Related Parties Notes Payable | 5. Related Parties Notes Payable At both December 31, 2018 and December 31, 2017, the Company had notes payable balances of $56,768 and $69,808 with Eric Jones, the Companys President and Chief Executive Officer and Jim Collard, the Companys Vice President and Chief Operating Officer, respectively. These notes, as amended, are due December 31, 2019. On October 25, 2017 the Company received $100,000 from Paul Beckman, a director of the Company, under a convertible promissory note. Terms of the note called for interest at 1% per month, with the entire balance of principal and interest due in full on April 24, 2018. The convertible promissory note contained the option for the holder to convert any portion of the principal and interest into Company common stock at $0.15 per common share (a total of 666,667 shares). At inception, the market price for the Companys common stock was $0.17 per common share which exceeded the conversion price. As such, the convertible note contained a beneficial conversion feature of $13,333 which was recognized as a discount on the note on the date of issuance. The discount was being amortized over the note term using the straight-line method, which approximates the effective interest method. On February 26, 2018, Mr. Beckman participated in the Companys Private Placement (see Note 7) and acquired 1,000,000 Units for $140,000. A portion of this amount was in exchange for retirement of Mr. Beckmans convertible note payable of $100,000 and accrued interest payable of $4,012. Upon the retirement of Mr. Beckmans convertible promissory note, the Company recognized the unamortized portion of the discount of $5,100 as interest expense. After this transaction, the Company had no remaining obligation under the convertible note agreement with Mr. Beckman. During the years ended December 31, 2018 and 2017, the Company recognized a total of $28,739 and $23,672 respectively, in interest expense for the notes discussed above. Accrued interest payable was $52,787 and $36,949 at December 31, 2018 and 2017, respectively. |
6. Related Party Transactions
6. Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
6. Related Party Transactions | 6. Related Party Transactions In addition to the related parties notes payable discussed in Note 5, the Company had the following related party transactions. Three of the Companys officers had been deferring compensation for services. The officers balances at December 31, 2018 are as follows: Eric Jones, President and Chief Executive Officer - $420,000 (December 31, 2017 $350,000), Jim Collord, Vice President and Chief Operating Officer - $420,000 (December 31, 2017 $350,000), and Larry Thackery, Chief Financial Officer - $201,500 (December 31, 2017 $171,500). On July 31, 2018, the Company stopped expensing and deferring compensation for the three Company officers in the interest of marketing the SMMI project. The Company engages Baird Hanson LLP (Baird), a company owned by one of the Companys directors, to provide legal services. During the year ended December 31, 2018, the Company incurred $65,530 in legal expense with Mr. Baird. There was no expense for the comparable periods in 2017. At December 31, 2018 and December 31, 2017, the balance due to Baird was $241,685 and $181,313, respectively. On December 18, 2018, Eric Jones advanced funds to the Company for operating expenses in the amount of $10,000, and during 2017 advanced the company $10,971. The balance of Mr. Jones advances at December 31, 2018 was $20,971 and is included in accounts payable and other accrued liabilities on the consolidated balance sheet. At December 31, 2018 and December 31, 2017, the Company has a payable to Jim Collord of $33,167 and $30,978, respectively, attributed to reimbursement of expenses for South Mountain Project. The balance is included in accounts payable and other accrued liabilities on the consolidated balance sheet. |
7. Stockholders' Equity
7. Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
7. Stockholders' Equity | 7. Stockholders Equity The Companys common stock has a par value of $0.001 with 200,000,000 shares authorized. The Company also has 5,000,000 authorized shares of preferred stock with a par value of $0.0001. On February 20, 2018, the Board of Directors approved a Private Placement financing of up to $750,000 from the sale of equity units at a price of $0.14 per unit. Each unit consisted of one share of the Companys common stock and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional share of common stock of the Company at a price of $0.20 for a period of 12 months. On April 27, 2018 the Company closed its Private Placement. The Company sold Units representing a total of 2,550,000 shares of common stock and 1,275,000 common stock purchase warrants for total proceeds of $357,000. Of this amount, $252,988 was received in cash and $104,012 was in exchange for retirement of Mr. Beckmans convertible note payable and related accrued interest payable. See Note 5. At December 31, 2018, the Company has outstanding warrants for 1,275,000 shares of common stock with an exercise price of $0.20 that expires in 2019. There were no outstanding warrants at December 31, 2017. |
8. Stock Options
8. Stock Options | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
8. Stock Options | 8. Stock Options In March 2017, the Company granted 600,000 stock options to The options are exercisable on or before March 31, 2022 at a price of $0.10 for 200,000 shares, and at a price of $0.09 for the remaining 400,000 shares. On July 19, 2017, Paul Beckman exercised stock options representing 275,000 shares of common stock for total consideration of $28,275 which was in the form of the balance due on his note and interest expense of $20,000 and $125, respectively, and $8,150 in cash. Additionally, Larry Thackery exercised stock options for 140,000 shares of common stock for $12,400 in cash. The intrinsic value these options was approximately $5,000. In 2017, the fair value of each option award was estimated on the date of the grant using the assumptions noted in the following table: Number of Options 600,000 Stock price $0.09 - $0.10 Exercise price $0.09 - $0.10 Expected volatility 235.5% Expected dividends - Expected terms (in years) 5.0 Risk-free rate 1.96% The following is a summary of the Companys options issued under the Stock Option Incentive Plan: Shares Weighted Average Exercise Price Outstanding and exercisable at December 31, 2016 4,515,000 $ 0.08 Granted 600,000 0.09 Exercised (415,000) 0.10 Outstanding and exercisable at December 31, 2017 4,700,000 $0.09 Granted - - Expired (990,000) (0.07) Outstanding and exercisable at December 31, 2018 3,710,000 $0.09 The average remaining contractual term of the options outstanding and exercisable at December 31, 2018 was 2.24 years. As of December 31, 2018, options outstanding and exercisable had an aggregate intrinsic value of approximately $28,800 based on the Companys stock price of $0.09. |
9. Income Taxes
9. Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
9. Income Taxes | 9. Income Taxes The Company did not recognize a tax provision or benefit for the years ended December 31, 2018 and 2017 due to ongoing net losses. At December 31, 2018 and 2017, the Company had net deferred tax assets which were fully reserved by valuation allowances due to the likelihood of expiration of these deferred tax benefits. At December 31, 2018 and 2017, net deferred tax assets were calculated based on expected blended future tax rates of 27% and 38%, respectively, including both federal and Idaho state components. Significant components of net deferred tax assets at December 31, 2018 and 2017 are as follows: 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 1,935,200 $ 1,836,000 Share-based compensation 59,500 59,000 Deferred salaries 278,000 232,600 Exploration costs 89,700 67,000 2,362,400 2,194,600 Deferred tax liabilities: Investment in OGT LLC (146,500) (146,000) Net deferred tax assets 2,215,900 2,048,600 Less valuation allowance (2,215,900) (2,048,600) Net deferred tax asset $ - $ - As of December 31, 2018, the Company has approximately $7.2 million of federal and state net operating loss carryforwards, approximately $6.7 million of which will expire between 2028 through 2036. The remaining balance of approximately $0.5 million will never expire but whose utilization is limited to 80% of taxable income in any future year. The income tax benefit shown in the financial statements for the years ended December 31, 2018 and 2017 differs from the federal statutory rate as follows: 2018 2017 (Provision) benefit at statutory rates $ 132,900 21.0 % 249,000 35.0 % State taxes 7,500 1.2 34,100 4.8 % Miscellaneous permanent differences 500 0.1 600 0.1 % Change in prior year estimates 26,400 4.1 - - Impact of change in tax rates - - (882,400) (124.2) Change in valuation allowance (167,300) (26.4) 598,700 84.2 % Total $ 0 - % $ 0 - % On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the "Act") resulting in significant modifications to existing law. The Company completed the accounting for the effects of the Act during the quarter ended December 31, 2017. The Company did not incur any income tax benefit or provision for the year ended December 31, 2017 as a result of the changes to tax laws and tax rates under the Act. The Companys net deferred tax asset was reduced by $882,400 during the year ended December 31, 2017, which consisted primarily of the re-measurement of federal deferred tax assets and liabilities from the previous rate of 35% to the newly enacted rate of 21%. The Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns and found no positions that would require a liability for uncertain income tax benefits to be recognized. The Company is subject to possible tax examinations for the years 2014 through 2018. Prior year tax attributes could be adjusted by taxing authorities. If applicable, the Company will deduct interest and penalties as interest expense on the financial statements. |
10. Subsequent Events
10. Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
10. Subsequent Events | 10. Subsequent Events On February 27, 2019, the Company entered into an Option Agreement, (the BeMetals Option Agreement) with BeMetals Corp., a British Columbia corporation (BeMetals), and BeMetals USA Corp., a Delaware corporation (BMET USA), a wholly owned subsidiary of BeMetals. Under the terms of the BeMetals Option Agreement, BMET USA will be entitled to purchase 100% of the issued and outstanding shares of SMMI from TMRI, both wholly owned subsidiaries of the Company. The term of the agreement is for two years with BeMetals completing a preliminary economic assessment ("PEA") completed by a mutually agreed third-party engineering firm. BeMetals will issue 10 million BMET common shares (Consideration Shares) to TMRI. BeMetals will also purchase of 2.5 million shares of the Companys common stock at a price of $0.10 per share, for an aggregate purchase price of $250,000, on a private placement. BeMetals will make cash payments of $850,000 over the 24 months of the agreement and another $250,000 upon exercise of the Option Agreement. The exercise of the Option Agreement price can be paid in combination with cash and BeMetals common shares. The calculation of the purchase price is an amount equal to the lesser of 50% of the market capitalization of BeMetals at the time, and the greater of either $10 million; or 20% the net present value of the South Mountain Project as calculated in a PEA that BMET will complete on the Project. Payment may be satisfied by through the delivery of BMET common shares (Consideration Shares), a cash payment or a combination of Consideration Shares and cash. The BMET common shares will be issued at a deemed value based on the 5-day VWAP of Consideration Shares immediately prior to the date that BMET USA gives notice of its intention to exercise the option. Payment(s) may be accelerated to exercise the Option Agreement, and restrictions will exist on resale of BeMetals common shares. The Company will not be granted any anti-dilution rights in respect of the Consideration Shares. |
1. Summary of Significant Acc_2
1. Summary of Significant Accounting Policies and Business Operations: Going Concern (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Going Concern | The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company has historically incurred losses and does not have sufficient cash at December 31, 2018 to fund normal operations for the next 12 months. The Company has no recurring source of revenue and its ability to continue as a going concern is dependent on the Companys ability to raise capital to fund its future exploration and working capital requirements. The Companys plans for the long-term continuation as a going concern include financing the Companys future operations through sales of its 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 are significant obstacles to raising the required funds. |
1. Summary of Significant Acc_3
1. Summary of Significant Accounting Policies and Business Operations: Reclassifications (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Reclassifications | Certain reclassifications have been made to conform prior periods data to the current presentation. These reclassifications have no effect on previously reported operations, stockholders equity (deficit) or cash flows. |
1. Summary of Significant Acc_4
1. Summary of Significant Accounting Policies and Business Operations: Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company; its wholly owned subsidiaries, Thunder Mountain Resources, Inc. (TMRI) and South Mountain Mines, Inc. (SMMI); and a company in which the Company has majority control, Owyhee Gold Trust, LLC (OGT). Intercompany accounts are eliminated in consolidation. The Company has established 75% ownership and full management of OGT. Thus, OGTs financial information is included 100% in the Companys consolidated financial statements as of December 31, 2016. The Companys consolidated financial statements reflect the other investors 25% non-controlling, capped interest in OGT. |
1. Summary of Significant Acc_5
1. Summary of Significant Accounting Policies and Business Operations: Accounting Estimates (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Accounting Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the 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 include the carrying value of properties and mineral interests, environmental remediation liabilities, deferred tax assets, and stock-based compensation. Managements estimates and assumptions are based on historical experience and other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
1. Summary of Significant Acc_6
1. Summary of Significant Accounting Policies and Business Operations: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Cash and Cash Equivalents | For the purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be a cash equivalent. |
1. Summary of Significant Acc_7
1. Summary of Significant Accounting Policies and Business Operations: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Income Taxes | The Company recognizes deferred income tax liabilities or assets at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized. |
1. Summary of Significant Acc_8
1. Summary of Significant Accounting Policies and Business Operations: Fair Value Measures (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Fair Value Measures | When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no financial assets or liabilities that are adjusted to fair value on a recurring basis. |
1. Summary of Significant Acc_9
1. Summary of Significant Accounting Policies and Business Operations: Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Financial Instruments | The Companys financial instruments include cash and cash equivalents and related party notes payable the carrying value of which approximates fair value based on the nature of those instruments. |
1. Summary of Significant Ac_10
1. Summary of Significant Accounting Policies and Business Operations: Mineral Interests (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Mineral Interests | The Company capitalizes costs for acquiring mineral interests and expenses costs to maintain mineral rights and leases as incurred. Exploration costs are expensed in the period in which they occur. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method based on periodic estimates of ore reserves. Mineral properties are periodically assessed for impairment of value and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. |
1. Summary of Significant Ac_11
1. Summary of Significant Accounting Policies and Business Operations: Investments in Joint Venture (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Investments in Joint Venture | The Companys accounting policy for joint ventures is as follows: The Company uses the cost method when it does not have joint control or significant influence in a joint venture. Under the cost method, these investments are carried at cost. If other than temporary impairment in value is determined, it would then be charged to current net income or loss. If the Company enters into a joint venture in which there is joint control between the parties or the Company has significant influence, the equity method is utilized whereby the Companys share of the ventures earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. If other than temporary impairment in value is determined, it would then be charged to current net income or loss. In a joint venture where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is typically consolidated with the presentation of non-controlling interest. In determining whether significant influences exist, the Company considers its participation in policy-making decisions and its representation on the ventures management committee. See Note 3 regarding the Companys investment in Owyhee Gold Trust, LLC. |
1. Summary of Significant Ac_12
1. Summary of Significant Accounting Policies and Business Operations: Reclamation and Remediation (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Reclamation and Remediation | The Companys operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company would record the fair value of an asset retirement obligation as a liability in the period in which the Company incurred a legal obligation for the retirement of tangible long-lived assets. A corresponding asset would also be recorded and depreciated over the life of the asset. After the initial measurement of the asset retirement obligation, the liability is adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. Determination of any amounts recognized upon adoption is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred, and they are reasonably estimable. Such costs are based on managements estimate of amounts expected to be incurred when the remediation work is performed. |
1. Summary of Significant Ac_13
1. Summary of Significant Accounting Policies and Business Operations: Share-based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Share-based Compensation | Share-based payments to employees and directors, including grants of employee stock options, are measured at fair value and expensed in the statement of operations over the vesting period. |
1. Summary of Significant Ac_14
1. Summary of Significant Accounting Policies and Business Operations: Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Recent Accounting Pronouncements | In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update provides guidance on classification for cash receipts and payments related to eight specific issues. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The adoption of this update on January 1, 2018 had no impact on the Companys consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The adoption of this update on January 1, 2018 had no impact on the Companys consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will apply the provisions of the update to potential future acquisitions occurring after January 1, 2018. 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. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
1. Summary of Significant Ac_15
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Net Income (loss) Per Share | The Company is required to have dual presentation of basic earnings per share (EPS) and diluted EPS. Basic EPS is computed as net income divided by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including options and warrants to purchase the Companys common stock. For year ended December 31, 2018 2017 Stock options 3,710,000 4,700,000 Warrants 1,275,000 666,667 Total possible dilution 4,985,000 5,366,667 |
1. Summary of Significant Ac_16
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For year ended December 31, 2018 2017 Stock options 3,710,000 4,700,000 Warrants 1,275,000 666,667 Total possible dilution 4,985,000 5,366,667 |
2. Commitments_ Other Commitmen
2. Commitments: Other Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Other Commitments | Annual Payment Acree Lease (June) $ 3,390 Lowry Lease (October) 11,280 Total $14,670 |
2. Commitments_ Schedule of unp
2. Commitments: Schedule of unpatented claims lease payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of unpatented claims lease payments | Target Area 2018 Trout Creek -State of Nevada $12,090 Trout Creek -Lander County 940 South Mountain-State of Idaho 3,255 Total $ 16,285 |
3. South Mountain Project_ Chan
3. South Mountain Project: Changes in non-controlling interest equity balance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Changes in non-controlling interest equity balance | Years Ended December 31, 2018 2017 Balance at beginning of period $ 174,111 $ 178,702 Distribution to non-controlling interest (5,409) (5,000) Net income (loss) attributable to noncontrolling interest 5,000 409 Balance at end of period $ 173,702 $ 174,111 |
4. Property and Equipment_ Prop
4. Property and Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Property, Plant and Equipment | December 31, 2018 December 31, 2017 Vehicles $ 22,441 $ 22,441 Buildings 65,071 65,071 Construction Equipment 36,447 36,447 Mining Equipment 58,646 58,646 182,605 182,605 Accumulated Depreciation (124,384) (75,959) 58,221 106,646 Land 280,333 280,333 Total Property and Equipment $ 338,554 $ 386,979 |
8. Stock Options_ Schedule of S
8. Stock Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Number of Options 600,000 Stock price $0.09 - $0.10 Exercise price $0.09 - $0.10 Expected volatility 235.5% Expected dividends - Expected terms (in years) 5.0 Risk-free rate 1.96% |
8. Stock Options_ Schedule of_2
8. Stock Options: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | Shares Weighted Average Exercise Price Outstanding and exercisable at December 31, 2016 4,515,000 $ 0.08 Granted 600,000 0.09 Exercised (415,000) 0.10 Outstanding and exercisable at December 31, 2017 4,700,000 $0.09 Granted - - Expired (990,000) (0.07) Outstanding and exercisable at December 31, 2018 3,710,000 $0.09 |
9. Income Taxes_ Schedule of De
9. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 1,935,200 $ 1,836,000 Share-based compensation 59,500 59,000 Deferred salaries 278,000 232,600 Exploration costs 89,700 67,000 2,362,400 2,194,600 Deferred tax liabilities: Investment in OGT LLC (146,500) (146,000) Net deferred tax assets 2,215,900 2,048,600 Less valuation allowance (2,215,900) (2,048,600) Net deferred tax asset $ - $ - |
9. Income Taxes_ Schedule of Ef
9. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | 2018 2017 (Provision) benefit at statutory rates $ 132,900 21.0 % 249,000 35.0 % State taxes 7,500 1.2 34,100 4.8 % Miscellaneous permanent differences 500 0.1 600 0.1 % Change in prior year estimates 26,400 4.1 - - Impact of change in tax rates - - (882,400) (124.2) Change in valuation allowance (167,300) (26.4) 598,700 84.2 % Total $ 0 - % $ 0 - % |
1. Summary of Significant Ac_17
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Incremental Common Shares Attributable to Dilutive Effect of Written Put Options | 3,710,000 | 4,700,000 |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 1,275,000 | 666,667 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,985,000 | 5,366,667 |
2. Commitments_ Other Commitm_2
2. Commitments: Other Commitments (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Details | |
Acree Lease | $ 3,390 |
Lowry Lease | 11,280 |
Payments to Acquire Mineral Rights | $ 14,670 |
2. Commitments_ Schedule of u_2
2. Commitments: Schedule of unpatented claims lease payments (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Details | |
Trout Creek - State of Nevada | $ 12,090 |
Trout Creek - Lander County | 940 |
South Mountain - State of Idaho | 3,255 |
Claim fees | $ 16,285 |
3. South Mountain Project_ Ch_2
3. South Mountain Project: Changes in non-controlling interest equity balance (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Beginning balance | $ 174,111 | $ 178,702 |
Distribution to noncontrolling interest | (5,409) | (5,000) |
Net Income - noncontrolling interest in Owyhee Gold Trust | 5,000 | 409 |
Nonredeemable Noncontrolling Interest | $ 173,702 | $ 174,111 |
4. Property and Equipment_ Pr_2
4. Property and Equipment: Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Details | ||
Vehicles | $ 22,441 | $ 22,441 |
Buildings | 65,071 | 65,071 |
Construction Equipment | 36,447 | 36,447 |
Mining Equipment | 58,646 | 58,646 |
Property, Plant and Equipment, Gross | 182,605 | 182,605 |
Accumulated depreciation | (124,384) | (75,959) |
Property, Plant, and Equipment, Owned, Net | 58,221 | 106,646 |
Land | 280,333 | 280,333 |
Total property and equipment | $ 338,554 | $ 386,979 |
5. Related Parties Notes Paya_2
5. Related Parties Notes Payable (Details) | Feb. 26, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 25, 2017USD ($) |
Details | ||||
Notes payable related parties, Jones | $ 56,768 | $ 56,768 | ||
Notes payable related parties, Collord | 69,808 | 69,808 | ||
Convertible promissory note from related party | $ 100,000 | |||
Private placement units sold | 1,000,000 | |||
Private placement units sold value | $ 140,000 | |||
Repayments of Related Party Debt | $ 100,000 | 104,012 | ||
Repayment Related Party Interest | 4,012 | |||
Convertible promissory note from related party interest expense | 28,739 | 23,672 | ||
Interest Payable | $ 52,787 | $ 36,949 |
6. Related Party Transactions (
6. Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Deferred compensation, Jones | $ 420,000 | $ 350,000 |
Deferred compensation, Collord | 420,000 | 350,000 |
Deferred compensation, Thackery | 201,500 | 171,500 |
Fees for legal services | 241,685 | 181,313 |
Proceeds from related party debt, Jones | 20,971 | |
Proceeds from related party debt, Collord | $ 33,167 | $ 30,978 |
7. Stockholders' Equity (Detail
7. Stockholders' Equity (Details) - USD ($) | Feb. 26, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Details | |||
Common Stock, Par Value | $ 0.001 | $ 0.001 | |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | |
Preferred Stock, Par Value | $ 0.0001 | $ 0.0001 | |
Common stock purchase warrants new issues stock | 1,275,000 | ||
Proceeds from Issuance of Private Placement | $ 357,000 | ||
Proceeds from private placement, cash | 252,988 | ||
Repayments of Related Party Debt | $ 100,000 | $ 104,012 | |
Class of Warrant or Right, Outstanding | 1,275,000 |
8. Stock Options (Details)
8. Stock Options (Details) | Dec. 31, 2018USD ($)shares | Dec. 31, 2017shares |
Details | ||
Stock options granted to directors | shares | 600,000 | 600,000 |
Average remaining term | 2.24 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 28,800 |
8. Stock Options_ Schedule of_3
8. Stock Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Stock options granted to directors | 600,000 | 600,000 |
Stock price per share minimum | $ 0.09 | |
Stock price per share maximum | 0.10 | |
Exercise price per share minimum | 0.09 | |
Exercise price per share maximum | $ 0.10 | |
Expected volatility | 235.50% | |
Expected terms | 5.0 | |
Risk-free rate | 1.96% |
8. Stock Options_ Schedule of_4
8. Stock Options: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Details | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,710,000 | 4,700,000 | 4,515,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.09 | $ 0.09 | $ 0.08 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 600,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.09 | $ 0.09 | $ 0.08 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0.10 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (990,000) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ (0.07) |
9. Income Taxes_ Schedule of _2
9. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 1,935,200 | $ 1,836,000 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | 59,500 | 59,000 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 278,000 | 232,600 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 89,700 | 67,000 |
Deferred Tax Assets, Gross | 2,362,400 | 2,194,600 |
Deferred Tax Liabilities, Net | (146,500) | (146,000) |
Deferred Tax Assets, Net | 2,215,900 | 2,048,600 |
Valuation Allowances and Reserves, Balance | $ (2,215,900) | $ (2,048,600) |
9. Income Taxes_ Schedule of _3
9. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 132,900 | $ 249,000 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | $ 7,500 | $ 34,100 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 1.20% | 4.80% |
Effective Income Tax Rate Reconciliation, Deduction, Amount | $ 500 | $ 600 |
Effective Income Tax Rate Reconciliation, Deduction, Percent | 0.10% | 0.10% |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | $ 26,400 | |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 4.10% | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ (882,400) | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | (124.20%) | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ (167,300) | $ 598,700 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (26.40%) | 84.20% |
10. Subsequent Events (Details)
10. Subsequent Events (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Details | |
Subsequent Event, Description | On February 27, 2019, the Company entered into an Option Agreement, (the “BeMetals Option Agreement”) with BeMetals Corp., a British Columbia corporation (“BeMetals”), and BeMetals USA Corp., a Delaware corporation (“BMET USA”), a wholly owned subsidiary of BeMetals. |