Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 13, 2019 | |
Details | ||
Registrant CIK | 0000711034 | |
Fiscal Year End | --12-31 | |
Registrant Name | Thunder Mountain Gold Inc | |
SEC Form | 10-Q | |
Period End date | Jun. 30, 2019 | |
Trading Symbol | THMG | |
Trading Exchange | NONE | |
Tax Identification Number (TIN) | 91-1031015 | |
Number of common stock shares outstanding | 60,133,879 | |
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 | 001-08429 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 11770 W President Dr. STE F | |
Entity Address, City or Town | Boise | |
Entity Address, State or Province | ID | |
Entity Address, Postal Zip Code | 83713 | |
City Area Code | 208 | |
Local Phone Number | 658-1037 | |
Title of 12(g) Security | Common Stock, $0.001 par value | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Thunder Mountain Gold, Inc. Con
Thunder Mountain Gold, Inc. Consolidated Balance Sheets (Unaudited) | Jun. 30, 2019USD ($)shares | |
Current assets: | ||
Cash and cash equivalents | $ 151,080 | |
Prepaid expenses and other assets | 31,992 | |
Total current assets | 183,072 | |
Property and Equipment: | ||
Land | 280,333 | |
Equipment, net | 43,007 | |
Total property and equipment | 323,340 | |
Investment in equity security, at fair value (Note 3) | 1,833,149 | [1] |
Mineral interests (Note 3) | 0 | [1] |
Total assets | 2,339,561 | |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 119,487 | |
Accrued related party liability (Note 5) | 241,685 | [2] |
Accrued interest related parties | 63,772 | [2] |
Deferred officer compensation (Note 6) | 1,063,500 | [3] |
Related parties notes payable, (Note 5) | 166,576 | [2] |
Total current liabilities | 1,655,020 | |
Accrued reclamation costs | 65,000 | |
Total liabilities | 1,720,020 | |
Commitments and Contingencies (Notes 2 and 3) | [4] | |
Stockholders' equity (deficit): | ||
Preferred stock; $0.0001 par value, 5,000,000 shares authorized; no shares issued or outstanding | 0 | |
Common stock; $0.001 par value; 200,000,000 shares authorized, 60,145,579 and 57,645,579 shares issued and outstanding, respectively | 60,146 | |
Additional paid-in capital | 6,176,576 | |
Less: 11,700 shares of treasury stock, at cost | $ (24,200) | |
Less: 11,700 shares of treasury stock, at cost | shares | 11,700 | |
Accumulated deficit | $ (5,766,683) | |
Stockholders' Equity Attributable To Parent | 445,839 | |
Noncontrolling interest in Owyhee Gold Trust (Note 3) | 173,702 | [1] |
Total stockholders' equity (deficit) | 619,541 | |
Total liabilities and stockholders' equity (deficit) | $ 2,339,561 | |
[1] | Note 3 | |
[2] | Note 5 | |
[3] | Note 6 | |
[4] | Notes 2, 3 |
Thunder Mountain Gold, Inc. C_2
Thunder Mountain Gold, Inc. Consolidated Balance Sheets (Unaudited) - Parenthetical - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Details | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 139,598 | $ 124,384 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
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 | 60,145,579 | 57,645,579 |
Common Stock, Shares, Outstanding | 60,145,579 | 57,645,579 |
Thunder Mountain Gold, Inc. C_3
Thunder Mountain Gold, Inc. Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Gain on mineral interest | $ 1,504,398 | $ 0 | $ 1,504,398 | $ 0 |
Management service income | 50,000 | 0 | 50,000 | 0 |
Total revenues | 1,554,398 | 0 | 1,554,398 | 0 |
Operating expenses: | ||||
Exploration | 7,561 | 118,457 | 16,178 | 176,073 |
Legal and accounting | 25,710 | 80,475 | 114,721 | 108,036 |
Management and administrative | 97,440 | 69,055 | 278,667 | 160,184 |
Depreciation | 7,134 | 12,402 | 15,214 | 25,009 |
Total operating expenses | 137,845 | 280,389 | 424,780 | 469,302 |
Other income (expense): | ||||
Interest expense, related parties | (6,588) | (4,547) | (11,721) | (19,644) |
Unrealized loss on investment | (50,726) | 0 | (50,726) | 0 |
Miscellaneous income (expense) | (243) | 5 | (244) | 708 |
Total other income (expense) | (57,557) | (4,542) | (62,691) | (18,936) |
Net Income (loss) | 1,358,996 | (284,931) | 1,066,927 | (488,238) |
Net Income (loss) - noncontrolling interest in Owyhee Gold Trust | 0 | 0 | 0 | 0 |
Net Income (loss) - Thunder Mountain Gold, Inc. | $ 1,358,996 | $ (284,931) | $ 1,066,927 | $ (488,238) |
Net Income (loss) per common share - basic and diluted | $ 0.02 | $ 0 | $ 0.02 | $ (0.01) |
Weighted average common shares outstanding - basic and diluted | 58,195,030 | 57,409,315 | 57,921,822 | 56,674,861 |
Thunder Mountain Gold, Inc. C_4
Thunder Mountain Gold, Inc. Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Noncontrolling Interest | Total |
Equity Balance at Dec. 31, 2017 | $ 55,096 | $ 5,457,538 | $ (24,200) | $ (6,195,923) | $ 174,111 | $ (533,378) |
Equity Balance at Dec. 31, 2017 | 55,095,579 | |||||
Shares and warrants issued for cash | $ 1,807 | 251,181 | 0 | 0 | 0 | 252,988 |
Shares and warrants issued for cash | 1,807,057 | |||||
Shares and warrants issued for payment of related parties notes payable and accrued interest | $ 743 | 103,269 | 0 | 0 | 0 | 104,012 |
Shares and warrants issued for payment of related parties notes payable and accrued interest | 742,943 | |||||
Distribution to noncontrolling interest | $ 0 | 0 | 0 | 0 | (421) | (421) |
Equity Balance at Jun. 30, 2018 | 57,645,579 | |||||
Equity Balance at Jun. 30, 2018 | $ 57,646 | 5,811,988 | (24,200) | (6,684,161) | 173,690 | (665,037) |
Net income (loss) | 0 | 0 | 0 | (488,238) | (488,238) | |
Equity Balance at Mar. 31, 2018 | $ 57,146 | 5,742,488 | (24,200) | (6,399,230) | 173,690 | (450,106) |
Equity Balance at Mar. 31, 2018 | 57,145,579 | |||||
Shares and warrants issued for cash | $ 500 | 69,500 | 0 | 0 | 0 | 70,000 |
Shares and warrants issued for cash | 500,000 | |||||
Equity Balance at Jun. 30, 2018 | 57,645,579 | |||||
Equity Balance at Jun. 30, 2018 | $ 57,646 | 5,811,988 | (24,200) | (6,684,161) | 173,690 | (665,037) |
Net income (loss) | 0 | 0 | 0 | (284,931) | 0 | (284,931) |
Equity Balance at Dec. 31, 2018 | $ 57,646 | 5,811,988 | (24,200) | (6,833,610) | 173,702 | (814,474) |
Equity Balance at Dec. 31, 2018 | 57,645,579 | |||||
Shares and warrants issued for payment of related parties notes payable and accrued interest | 0 | |||||
Shares issued for cash, value | $ 2,500 | 247,500 | 0 | 0 | 0 | 250,000 |
Shares issued for cash | 2,500,000 | |||||
Stock based compensation | $ 0 | 117,088 | 0 | 0 | 0 | 117,088 |
Equity Balance at Jun. 30, 2019 | 60,145,579 | |||||
Equity Balance at Jun. 30, 2019 | $ 60,146 | 6,176,576 | (24,200) | (5,766,683) | 173,702 | (619,541) |
Net income (loss) | 0 | 0 | 0 | 1,066,927 | 0 | 1,066,927 |
Equity Balance at Mar. 31, 2019 | $ 57,646 | 5,929,076 | (24,200) | (7,125,679) | 173,702 | (989,455) |
Equity Balance at Mar. 31, 2019 | 57,645,579 | |||||
Shares issued for cash, value | $ 2,500 | 247,500 | 0 | 0 | 0 | 250,000 |
Shares issued for cash | 2,500,000 | |||||
Equity Balance at Jun. 30, 2019 | 60,145,579 | |||||
Equity Balance at Jun. 30, 2019 | $ 60,146 | 6,176,576 | (24,200) | (5,766,683) | 173,702 | (619,541) |
Net income (loss) | $ 0 | $ 0 | $ 0 | $ 1,358,996 | $ 0 | $ 1,358,996 |
Thunder Mountain Gold, Inc. C_5
Thunder Mountain Gold, Inc. Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Cash flows from operating activities: | |||
Net Income (loss) | $ 1,066,927 | $ (488,238) | |
Depreciation | 0 | 8,888 | |
Stock based compensation | 15,214 | 25,009 | |
Amortization of related party notes payable discount | 117,088 | 0 | |
Gain on mineral interest | (1,504,398) | 0 | |
Unrealized loss on investment | 50,726 | 0 | |
Change in: | |||
Prepaid expenses and other assets | (2,567) | (1,443) | |
Accounts payable and other accrued liabilities | (18,605) | 33,662 | |
Accrued related party liability | 0 | 65,530 | |
Accrued interest payable to related parties | 10,985 | 10,756 | |
Deferred officer compensation | 22,000 | 78,000 | |
Net cash used by operating activities | (242,630) | (198,836) | |
Cash flows from investing activities: | |||
Proceeds from mineral interest | 100,000 | 0 | |
Net cash provided by investing activities | 100,000 | 0 | |
Cash flows from financing activities: | |||
Proceeds from sale of common stock and warrants | 250,000 | 252,988 | |
Distribution to noncontrolling interest | 0 | (421) | |
Borrowings on related parties notes payable | 50,000 | 0 | |
Payment on related parties notes payable | (10,000) | 0 | |
Net cash provided by financing activities | 290,000 | 252,567 | |
Net increase (decrease) in cash and cash equivalents | 147,370 | 53,731 | |
Cash and cash equivalents, beginning of period | 3,710 | 36,454 | |
Cash and cash equivalents, end of period | 151,080 | 90,185 | |
Noncash financing and investing activities: | |||
Common stock issued for payment of related party note payable and accrued interest payable | 0 | 104,012 | |
Fair value shares received in option agreement | [1] | $ 1,883,875 | $ 0 |
[1] | Note 3 |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies and Business Operations | 6 Months Ended |
Jun. 30, 2019 | |
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, THMG, 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 These unaudited interim consolidated financial statements have been prepared by the management of the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of the Companys management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim consolidated financial statements have been included. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019. For further information refer to the financial statements and footnotes thereto in the Companys audited financial statements for the year ended December 31, 2018 as filed with the Securities and Exchange Commission. 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, however, currently has sufficient cash at June 30, 2019 to fund normal operations for the next 12 months. With the signing of the BeMetals Option Agreement (Note 3), the Company now has a recurring source of revenue, and its ability to continue as a going concern is no longer just dependent on equity capital raises and borrowings. The Company continues to have the ability to raise capital in order 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. 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. Over its term, this agreement requires cash payments to the Company of $1,350,000 - $1,100,000 in cash and $250,000 in exchange for shares of the Companys common stock. Through June 30, 2019, cash proceeds of $100,000 and $250,000 in exchange for shares of the Companys common stock have been received. In the event that BeMetals decides not to proceed with the South Mountain Project, BeMetals will not be obligated to make any additional payments. See Note 3 for further information. 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 owns 75% and has majority control, Owyhee Gold Trust, LLC (OGT). The Companys consolidated financial statements reflect the other investors 25% non-controlling, capped interest in OGT. Intercompany accounts are eliminated in consolidation. 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. Revenue Recognition Management service revenue is recognized when the Company has satisfied its performance obligation required under its management contract. Such obligation is satisfied over time as work is performed and the Company has a contractual right to payment. 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. At June 30, 2019, the Company has one financial asset, investment in equity security, that is adjusted to fair value on a recurring basis for which the fair value is determined based on Level 1 inputs as the equity security is traded on a stock exchange. The Company has no financial liabilities that are adjusted to fair value on a recurring basis. Financial Instruments The Companys financial instruments include cash and cash equivalents, investment in equity security and related party notes payable the carrying value of which approximates fair value based on the nature of those instruments. Investments The Company determines the appropriate classification of investments at the time of acquisition and re-evaluate such determinations at each reporting date. Equity securities determined to be marketable are carried at fair value determined using Level 1 fair value measurement inputs with the change in fair value recognized in the Consolidated Statement of Operations each reporting period. 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 Accounting Standards Updates Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02 Leases (Topic 842). The update modified the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update was effective for fiscal years beginning after December 15, 2018, with early adoption permitted. Adoption of this update as of January 1, 2019 did not have a material impact on the Companys consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07 Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The update involves simplification of several aspects of accounting for nonemployee share-based payment transactions by expanding the scope of Topic 718 to include nonemployee awards. The update was effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this update as of January 1, 2019 did not have a material impact on the Companys consolidated financial statements. Accounting Standards Updates to Become Effective in Future Periods In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update removes, modifies and makes additions to the disclosure requirements on fair value measurements. The update is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Management is evaluating the impact of this update on the Companys fair value measurement 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 (loss) 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. The potential dilutive common stock equivalents for each period are as follows: 2019 2018 For Quarter and Six Months ended June 30, Stock options 5,035,000 3,710,000 Warrants - 1,275,000 Total possible dilution 5,035,000 4,985,000 As of June 30, 2019, stock options were excluded from the calculation of diluted earnings per share because the options exercise prices were not lower than the average share price during the periods. As of June 30, 2018, potentially dilutive common stock equivalents are not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive. |
2. Commitments
2. Commitments | 6 Months Ended |
Jun. 30, 2019 | |
Notes | |
2. Commitments | 2. Commitments The Company has two lease arrangements with landowners 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 2019 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 | 6 Months Ended |
Jun. 30, 2019 | |
Notes | |
3. South Mountain Project | 3. South Mountain Project BeMetals Option Agreement: 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. SMMI is the Companys subsidiary that holds the Companys investment in the South Mountain project mineral interest. 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. Pursuant to the BeMetals Option Agreement, BMET USA will be entitled to purchase 100% of the outstanding shares of SMMI from TMRI if the following obligations are satisfied: · · · · · · · · The Tranche 2 Completion Date as defined by the Option Agreement is subject to several conditions, including, among other things: · · from 53.24% of shareholders holding or controlling the issued and outstanding shares of the Company as of February 28, 2019 · · · Tranche 2 was completed on June 10, 2019. As per the agreement, BeMetals purchased 2,500,000 shares of the Companys common stock for $ 250,000 in cash . In addition, as per the agreement, the Company received 10,000,000 shares of BeMetals common stock that had a fair value of $1,883,875 on the Tranche 2 Completion Date. To date, the Company has received consideration of $100,000 in cash and $ 1,883,875 in BeMetals common stock. Prior to the agreement, the carrying value of the Companys investment in the South Mountain mineral interest was $ 479,477. The Company recognized a gain on mineral interest of $1,504,398 during the six months ended on June 30, 2019. Concurrent with the BeMetals Option Agreement, BMET USA and SMMI entered into a management contract whereby BMET USA will pay $25,000 monthly to SMMI for management services to enable BMET to perform exploration and development work with respect to the South Mountain Project. Management service income of $50,000 was recognized in the three and six month periods ended June 30, 2019. SMMI Joint Venture OGT 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. |
4. Property and Equipment
4. Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Notes | |
4. Property and Equipment | 4. Property and Equipment The Companys property and equipment are as follows: June 30, 2019 December 31, 2018 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 (139,598) (124,384) 43,007 58,221 Land 280,333 280,333 Total Property and Equipment $ 323,340 $ 338,554 |
5. Related Parties Notes Payabl
5. Related Parties Notes Payable | 6 Months Ended |
Jun. 30, 2019 | |
Notes | |
5. Related Parties Notes Payable | 5. Related Parties Notes Payable At December 31, 2018, 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, bear interest at 1.0% to 2.0% per month and are due December 31, 2019. On February 14, 2019 and May 9, 2019, Eric Jones loaned an additional $10,000 and $30,000, respectively, at an interest rate of 1.5% per month and initially payable in full on June 30, 2019 bringing his balance at June 30, 2019 to $96,768. Mr. Jones was paid $20,000 on July 2, 2019 and the due date of the remaining balance of $10,000 was extended to December 31, 2019. On January 18, 2019, the Company executed a promissory note payable with Paul Beckman, a director of the Company. The amount of the note was $10,000 at an interest rate of 1.5% per month the amount was paid on June 17, 2019 with interest of $736. On October 25, 2017 the Company received $100,000 from Mr. Beckman under a convertible promissory note. On February 26, 2018, Mr. Beckman participated in the Companys Private Placement 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. After this transaction, the Company had no remaining obligation under the convertible note agreement with Mr. Beckman. |
6. Related Party Transactions
6. Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
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 began deferring compensation for services on April 1, 2015. On July 31, 2018, the Company stopped expensing and deferring compensation for the three Company officers in the interest of marketing the SMMI project. As part of the BeMetals agreement (Note 3), the Company resumed compensation for these officers on May 15, 2019. The officers deferred compensation balances at June 30, 2019 are as follows: Eric Jones, President and Chief Executive Officer - $432,000 (December 31, 2018 - $420,000); Jim Collord, Vice President and Chief Operating Officer - $423,000 (December 31, 2018 - $420,000); and Larry Thackery, Chief Financial Officer - $208,500 (December 31, 2018 - $201,500). 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 six-month period ended in 2019. At both June 30, 2019 and December 31, 2018, the balance due to Baird was $241,685. Since 2017, Eric Jones has advanced funds to the Company for operating expenses. The balance of Mr. Jones advances at June 30, 2019 and December 31, 2018 was $17,046 and $20,971, respectively; the balance is included in accounts payable and other accrued liabilities on the consolidated balance sheet. At June 30, 2019 and December 31, 2018, the Company has a payable to Jim Collord of $35,476 and $33,167, respectively, attributed to reimbursement of expenses for SMMI project. The balance is included in accounts payable and other accrued liabilities on the consolidated balance sheet. |
7. Stockholders' Equity
7. Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
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. As per the agreement, BeMetals purchased 2,500,000 shares of the Companys common stock for $ 250,000 in cash. See Note 3 At June 30, 2019 and December 31, 2018, the Company has outstanding warrants for nil and 1,275,000, respectively shares of common stock with an exercise price of $0.20 that expires in 2019. During the six month period ended June 30, 2019, no warrants were issued or exercised, and 1,275,000 warrants expired unexercised. |
8. Stock Options
8. Stock Options | 6 Months Ended |
Jun. 30, 2019 | |
Notes | |
8. Stock Options | 8. Stock Options In June 2019, the Company granted 1,325,000 stock options to officers and The options are exercisable on or before March 25, 2024 and have an exercise price of $ 0.09 . 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 1,325,000 Stock price $0.09 Exercise price $0.09 Expected volatility 209.5% Expected dividends - Expected terms (in years) 5.0 Risk-free rate 2.21% The following is a summary of the Companys options issued and outstanding under the Stock Option Incentive Plan: Shares Weighted Average Exercise Price 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 Granted 1,325,000 $0.09 Expired - - Outstanding and exercisable at June 30, 2019 5,035,000 $0.09 The average remaining contractual term of the options outstanding and exercisable at March 31, 2019 was 2.78 years. As of June 30, 2019, options outstanding and exercisable had no aggregate intrinsic value. |
1. Summary of Significant Acc_2
1. Summary of Significant Accounting Policies and Business Operations: Principles of Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Principles of Consolidation | 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 owns 75% and has majority control, Owyhee Gold Trust, LLC (OGT). The Companys consolidated financial statements reflect the other investors 25% non-controlling, capped interest in OGT. Intercompany accounts are eliminated in consolidation. |
1. Summary of Significant Acc_3
1. Summary of Significant Accounting Policies and Business Operations: Accounting Estimates (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Accounting Estimates | 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_4
1. Summary of Significant Accounting Policies and Business Operations: Revenue Recognition (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Revenue Recognition | Revenue Recognition Management service revenue is recognized when the Company has satisfied its performance obligation required under its management contract. Such obligation is satisfied over time as work is performed and the Company has a contractual right to payment. |
1. Summary of Significant Acc_5
1. Summary of Significant Accounting Policies and Business Operations: Income Taxes (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Income Taxes | 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_6
1. Summary of Significant Accounting Policies and Business Operations: Fair Value Measures (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Fair Value Measures | 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. At June 30, 2019, the Company has one financial asset, investment in equity security, that is adjusted to fair value on a recurring basis for which the fair value is determined based on Level 1 inputs as the equity security is traded on a stock exchange. The Company has no financial liabilities that are adjusted to fair value on a recurring basis. |
1. Summary of Significant Acc_7
1. Summary of Significant Accounting Policies and Business Operations: Financial Instruments (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Financial Instruments | Financial Instruments The Companys financial instruments include cash and cash equivalents, investment in equity security and related party notes payable the carrying value of which approximates fair value based on the nature of those instruments. |
1. Summary of Significant Acc_8
1. Summary of Significant Accounting Policies and Business Operations: Investments (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Investments | Investments The Company determines the appropriate classification of investments at the time of acquisition and re-evaluate such determinations at each reporting date. Equity securities determined to be marketable are carried at fair value determined using Level 1 fair value measurement inputs with the change in fair value recognized in the Consolidated Statement of Operations each reporting period. |
1. Summary of Significant Acc_9
1. Summary of Significant Accounting Policies and Business Operations: Mineral Interests (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Mineral Interests | 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_10
1. Summary of Significant Accounting Policies and Business Operations: Investments in Joint Venture (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Investments in Joint Venture | 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_11
1. Summary of Significant Accounting Policies and Business Operations: Reclamation and Remediation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Reclamation and Remediation | 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_12
1. Summary of Significant Accounting Policies and Business Operations: Share-based Compensation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Share-based Compensation | 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_13
1. Summary of Significant Accounting Policies and Business Operations: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Updates Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02 Leases (Topic 842). The update modified the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update was effective for fiscal years beginning after December 15, 2018, with early adoption permitted. Adoption of this update as of January 1, 2019 did not have a material impact on the Companys consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07 Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The update involves simplification of several aspects of accounting for nonemployee share-based payment transactions by expanding the scope of Topic 718 to include nonemployee awards. The update was effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this update as of January 1, 2019 did not have a material impact on the Companys consolidated financial statements. Accounting Standards Updates to Become Effective in Future Periods In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update removes, modifies and makes additions to the disclosure requirements on fair value measurements. The update is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Management is evaluating the impact of this update on the Companys fair value measurement disclosures. |
1. Summary of Significant Ac_14
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Policies | |
Net Income (loss) Per Share | 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 (loss) 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. The potential dilutive common stock equivalents for each period are as follows: 2019 2018 For Quarter and Six Months ended June 30, Stock options 5,035,000 3,710,000 Warrants - 1,275,000 Total possible dilution 5,035,000 4,985,000 As of June 30, 2019, stock options were excluded from the calculation of diluted earnings per share because the options exercise prices were not lower than the average share price during the periods. As of June 30, 2018, potentially dilutive common stock equivalents are not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive. |
1. Summary of Significant Ac_15
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) | 6 Months Ended |
Jun. 30, 2019 | |
Tables/Schedules | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | 2019 2018 For Quarter and Six Months ended June 30, Stock options 5,035,000 3,710,000 Warrants - 1,275,000 Total possible dilution 5,035,000 4,985,000 |
2. Commitments_ Other Commitmen
2. Commitments: Other Commitments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) | 6 Months Ended |
Jun. 30, 2019 | |
Tables/Schedules | |
Schedule of unpatented claims lease payments | Target Area 2019 Trout Creek -State of Nevada $12,090 Trout Creek -Lander County 940 South Mountain-State of Idaho 3,255 Total $ 16,285 |
4. Property and Equipment_ Prop
4. Property and Equipment: Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Tables/Schedules | |
Property, Plant and Equipment | June 30, 2019 December 31, 2018 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 (139,598) (124,384) 43,007 58,221 Land 280,333 280,333 Total Property and Equipment $ 323,340 $ 338,554 |
8. Stock Options_ Schedule of S
8. Stock Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Tables/Schedules | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Number of Options 1,325,000 Stock price $0.09 Exercise price $0.09 Expected volatility 209.5% Expected dividends - Expected terms (in years) 5.0 Risk-free rate 2.21% |
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) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2017 4,700,000 0.09 Granted - - Expired (990,000) (0.07) Outstanding and exercisable at December 31, 2018 3,710,000 $0.09 Granted 1,325,000 $0.09 Expired - - Outstanding and exercisable at June 30, 2019 5,035,000 $0.09 |
1. Summary of Significant Ac_16
1. Summary of Significant Accounting Policies and Business Operations (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Details | |
Nature of Operations | Thunder Mountain Gold, Inc. (“Thunder Mountain”, “THMG”, 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 Company’s 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. |
Entity Incorporation, Date of Incorporation | Nov. 9, 1935 |
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, however, currently has sufficient cash at June 30, 2019 to fund normal operations for the next 12 months. With the signing of the BeMetals Option Agreement (Note 3), the Company now has a recurring source of revenue, and its ability to continue as a going concern is no longer just dependent on equity capital raises and borrowings.  The Company continues to have the ability to raise capital in order to fund its future exploration and working capital requirements. The Company’s plans for the long-term continuation as a going concern include financing the Company’s future operations through sales of its common stock and/or debt and the eventual profitable exploitation of its mining properties. |
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 | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Details | ||
Stock options | 5,035,000 | 3,710,000 |
Warrants | 0 | 1,275,000 |
Total possible dilution | 5,035,000 | 4,985,000 |
2. Commitments_ Other Commitm_2
2. Commitments: Other Commitments (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
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) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
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 (Deta
3. South Mountain Project (Details) | 6 Months Ended |
Jun. 30, 2019USD ($)shares | |
Details | |
Stock Issued During Period, Shares, Acquisitions | shares | 2,500,000 |
Stock Issued During Period, Value, Acquisitions | $ | $ 250,000 |
4. Property and Equipment_ Pr_2
4. Property and Equipment: Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
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, Depletion and Amortization, Property, Plant, and Equipment | (139,598) | (124,384) |
Property, Plant, and Equipment, Owned, Net | 43,007 | 58,221 |
Land | 280,333 | 280,333 |
Property, Plant and Equipment, Other, Gross | $ 323,340 | $ 338,554 |
5. Related Parties Notes Paya_2
5. Related Parties Notes Payable (Details) - USD ($) | Jun. 30, 2019 | May 09, 2019 | Feb. 14, 2019 | Jan. 18, 2019 | Dec. 31, 2018 | Oct. 25, 2017 |
Details | ||||||
Notes payable related parties, Jones | $ 96,768 | $ 30,000 | $ 10,000 | $ 56,768 | ||
Notes payable related parties, Collord | $ 69,808 | |||||
Convertible promissory note from related party | $ 10,000 | $ 100,000 |
6. Related Party Transactions (
6. Related Party Transactions (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Details | ||
Deferred compensation, Jones | $ 432,000 | $ 420,000 |
Deferred compensation, Collord | 423,000 | 420,000 |
Deferred compensation, Thackery | 208,500 | 201,500 |
Fees for legal services | 241,685 | 241,685 |
Proceeds from related party debt, Jones | 17,046 | 20,971 |
Proceeds from related party debt, Collord | $ 35,476 | $ 33,167 |
7. Stockholders' Equity (Detail
7. Stockholders' Equity (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Details | ||
Common Stock, Par or Stated Value Per Share | $ 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 or Stated Value Per Share | $ 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 | $ 104,012 | |
Stock Issued During Period, Shares, Acquisitions | 2,500,000 | |
Stock Issued During Period, Value, Acquisitions | $ 250,000 | |
Class of Warrant or Right, Outstanding | 0 | 1,275,000 |
8. Stock Options (Details)
8. Stock Options (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Details | |
Stock options granted to directors | shares | 1,325,000 |
Stock price per share | $ / shares | $ 0.09 |
8. Stock Options_ Schedule of_3
8. Stock Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Details | |
Stock options granted to directors | shares | 1,325,000 |
Stock price per share | $ 0.09 |
Exercise price per share | $ 0.09 |
Expected volatility | 209.50% |
Expected terms | 5.0 |
Risk-free rate | 2.21% |
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 | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Details | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,035,000 | 3,710,000 | 4,700,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.09 | $ 0.09 | $ 0.09 |
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) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 1,325,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.09 | $ 0.09 | $ 0.09 |