Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Oct. 26, 2020 | |
Details | ||
Registrant CIK | 0000851726 | |
Fiscal Year End | --06-30 | |
Registrant Name | SANTA FE GOLD CORPORATION | |
SEC Form | 10-Q | |
Period End date | Sep. 30, 2019 | |
Tax Identification Number (TIN) | 84-1094315 | |
Number of common stock shares outstanding | 427,504,214 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | No | |
Interactive Data Current | No | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-12974 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 3544 Rio Grande Blvd. NW | |
Entity Address, City or Town | Albuquerque | |
Entity Address, State or Province | NM | |
Entity Address, Postal Zip Code | 87107 | |
City Area Code | 505 | |
Local Phone Number | 255-4852 | |
Phone Fax Number Description | Registrant’s telephone number, including area code | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 227,387 | $ 264,900 |
Prepaid expenses and other current assets | 19,209 | 76,921 |
Total current assets | 246,596 | 341,821 |
Total Assets | 3,994,769 | 3,682,729 |
NON-CURRENT ASSETS: | ||
Property and equipment, net | 232,808 | 25,543 |
Mineral property | 3,515,365 | 3,315,365 |
Total non-current assets | 3,748,173 | 3,340,908 |
Current liabilities: | ||
Accounts payable | 3,329,457 | 3,151,035 |
Accrued liabilities | 668,363 | 645,068 |
Notes payable | 558,543 | 598,543 |
Notes payable and accrued interest to related party | 74,528 | 63,499 |
Total Current Liabilities | 4,630,891 | 4,458,145 |
STOCKHOLDERS' DEFICIT: | ||
Common shares | 784,485 | 759,550 |
Additional paid-in capital | 92,794,048 | 91,943,704 |
Accumulated deficit | (94,214,655) | (93,478,670) |
Total Stockholders' Deficit | (636,122) | (775,416) |
Total Liabilities and Stockholders' Deficit | $ 3,994,769 | $ 3,682,729 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
Details | ||
Common Stock, Par or Stated Value Per Share | $ 0.002 | $ 0.002 |
Common Stock, Shares Authorized | 550,000,000 | 550,000,000 |
Common Stock, Shares, Issued | 392,242,397 | 379,775,217 |
Common Stock, Shares, Outstanding | 392,242,397 | 379,775,217 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Details | ||
REVENUES | $ 0 | $ 0 |
Exploration and other mine related costs | 282,974 | 6,076 |
General and administrative expenses | 466,400 | 294,326 |
Total Operating Expenses | 749,374 | 300,402 |
LOSS FROM OPERATIONS | (749,374) | (300,402) |
Other Nonoperating Income (Expense) | ||
Recovery (misappropriation) of funds | 27,539 | 378,060 |
Financing costs- commodity supply agreements | 0 | 234,417 |
Interest expense | (14,150) | (165,783) |
Total Other Income (Expense) | 13,389 | 446,694 |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | (735,985) | 146,292 |
PROVISION FOR INCOME TAXES | 0 | 0 |
NET INCOME (LOSS) | $ (735,985) | $ 146,292 |
Basic and Diluted Per Share Data: | ||
Net Income (Loss) - Basic | $ 0 | $ 0 |
Net Income ( Loss) - Diluted | $ 0 | $ 0 |
Weighted Average Common Shares Outstanding: | ||
Basic | 387,108,689 | 300,000,000 |
Diluted | 387,108,689 | 300,100,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 30, 2018 | $ 600,000 | $ 84,113,690 | $ (102,013,374) | $ (17,299,684) |
Shares, Outstanding, Beginning Balance at Jun. 30, 2018 | 300,000,000 | |||
Proceeds from common stock subscriptions | 200,000 | |||
NET INCOME (LOSS) | $ 0 | 0 | 146,292 | 146,292 |
Shares, Outstanding, Ending Balance at Sep. 30, 2018 | 300,000,000 | |||
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2018 | $ 600,000 | 84,455,690 | (101,867,082) | $ (16,811,392) |
Common Stock, Shares, Issued | 379,775,217 | |||
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 30, 2019 | $ 759,550 | 91,943,704 | (93,478,670) | $ (775,416) |
Shares, Outstanding, Beginning Balance at Jun. 30, 2019 | 379,775,217 | |||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 363 | 14,916 | 0 | $ 15,279 |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 181,466 | 181,466 | ||
Proceeds from common stock subscriptions | $ 24,572 | 835,428 | 0 | $ 860,000 |
Share subscriptions issued | 12,285,714 | 12,285,714 | ||
NET INCOME (LOSS) | $ 0 | 0 | (735,985) | $ (735,985) |
Shares, Outstanding, Ending Balance at Sep. 30, 2019 | 392,242,397 | |||
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2019 | $ 784,485 | $ 92,794,048 | $ (94,214,655) | $ (636,122) |
Common Stock, Shares, Issued | 392,242,397 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Net Cash Provided by (Used in) Operating Activities | ||
NET INCOME (LOSS) | $ (735,985) | $ 146,292 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | ||
Stock-based compensation | 15,279 | 17,800 |
Financing costs - commodity supply agreements | 0 | (234,417) |
Depreciation expense | 6,670 | 0 |
Non-cash interest expense | 1,029 | 0 |
Net change in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 57,712 | (5,853) |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 186,717 | 188,613 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | (468,578) | 112,435 |
Net Cash Provided by (Used in) Investing Activities | ||
Payment on mineral property | (200,000) | 0 |
Purchase of property and equipment | (198,935) | 0 |
Net Cash Provided by (Used in) Investing Activities | (398,935) | 0 |
Net Cash Provided by (Used in) Financing Activities | ||
Proceeds from common stock subscriptions | 860,000 | 200,000 |
Loan proceeds from a related party | 10,000 | 0 |
Payment on note payable principle | (40,000) | 0 |
Net Cash Provided by (Used in) Financing Activities | 830,000 | 200,000 |
Cash and Cash Equivalents, Period Increase (Decrease) | (37,513) | 312,435 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 264,900 | 18,897 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 227,387 | 331,332 |
Supplemental Cash Flow Information | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 0 | 0 |
Income Taxes Paid, Net | 0 | 0 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Valuation change on mandatory share redemption | $ 0 | $ 342,000 |
NOTE 1 - COMPANY AND NATURE OF
NOTE 1 - COMPANY AND NATURE OF OPERATIONS | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 1 - COMPANY AND NATURE OF OPERATIONS | NOTE 1 ORGANIZATION AND BUSINESS DESCRIPTION Santa Fe Gold Corporation (the Company, our or we) is a U.S. mining company incorporated in Delaware in August 1991. Our general business strategy is to acquire, explore, develop and mine mineral properties. The Company elected on August 26, 2015, to file for Chapter 11 Bankruptcy protection, Case # 15-11761 (MFW) and that case was dismissed on June 15, 2016. The Summit Silver-Gold Project, the Lordsburg Copper Project, Black Canyon Mica Project, Planet MIO Project, all claims and other assets were lost in the process. After the Company emerged from the bankruptcy with a management team of two with no assets, we developed a business plan to raise equity funds to acquire new mining claims, a potential processing plant or arrangements with a processing plant in an acceptable geographic location to potential new mining claims. In August 2017, the Company acquired all the capital stock of Bullards Peak Corporation and the related patented and unpatented claims in the Black Hawk district of New Mexico from Black Hawk Consolidated Mines Company for a purchase price of $3,115,365. The mine property is known as the Alhambra mine site. The transaction was finalized and closed in April 2019. The mining property acquired is an asset of Mineral Acquisitions, LLC, one of the Companys five wholly owned subsidiaries. In January 2019 the Company has acquired right of use on two properties in western New Mexico, consisting of eight (8) patented claims and two unpatented claims, all located in the Steeple Rock Mining District, Grant County, New Mexico and a related water rights lease agreement. The two properties are known as the Billali Mine and the Jim Crow Imperial Mine. The Company has begun improvements to the Jim Crow Imperial mine to start mining operations during the third calendar quarter of 2020. We are considered an exploration stage company under the U.S. Securities and Exchange Commission (SEC) Industry Guide 7. Interim Financial Statements The accompanying unaudited financial statements and related notes present the Companys consolidated financial position as of September 30, 2019 and June 30, 2019 (Audited), the consolidated results of operations for the three months ended September 30, 2019 and 2018, the consolidated statements of shareholders deficit for the three months ended September 30, 2019 and 2018 and, consolidated cash flows for the three months ended September 30, 2019 and 2018. The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended September 30, 2019, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2020. The accounting policies followed by the Company are set forth in Note 2 to the Companys financial statements included in Form 10-K for the fiscal year ended June 30, 2019. These interim financial statements and notes thereto should be read in conjunction with the consolidated financial statements presented in the Companys 2019 Annual Report on Form 10-K filed on July 15, 2020. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Going Concern The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due. The Company has recorded net loss of $735,985 for the three months ended September 30, 2019, and has a total accumulated deficit of $94,214,655 and a working capital deficit at September 30, 2019 of $4,384,295. The Company used in operating activities approximately $469,000 during the current period of measurement. The Company currently has no source of generating revenue. To continue as a going concern, the Company is dependent on continued capital financing for project development, repayment of various debt facilities and payment of current operating expenses until the Company has put into production an acceptable source to generate mineralized ore to generate a revenue stream. Currently we have no commitment from any party to provide additional working capital and there is no assurance that any funding will be available as required, or if available, that its terms will be favorable or acceptable to the Company. At September 30, 2019, the Company was in default on delinquent payments of approximately: $3.04 million on accounts payable, $398,000 on a note payable and $643,000 on other accrued liabilities. The unaudited consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries AZCO Mica, Inc., a Delaware corporation, The Lordsburg Mining Company, a New Mexico corporation, and Santa Fe Gold Barbados Corporation, a Barbados corporation, Santa Fe Acquisitions Company, a New Mexico Limited Liability Company, Mineral Acquisitions, a New Mexico Limited Liability Company and Bullards Peak Corporation, a New Mexico Corporation. All significant inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated 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 disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates under different assumptions or conditions. Significant estimates are used when accounting for the Company's carrying value of mineral properties, fixed assets, depreciation, amortization, accruals, derivative instrument liabilities, valuation of warrants, taxes and contingencies, and stock-based compensation. Fair Value Measurements The carrying values of cash and cash equivalents, accounts payable and accrued liabilities approximated their related fair values as of September 30, 2019, and June 30, 2019, due to the relatively short-term nature of these instruments. Cash and Cash Equivalents The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash balances. Property and Equipment Property and equipment are carried at cost. Maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Expenditures for new property or equipment and expenditures that extend the useful lives of existing property and equipment are capitalized and recorded at cost. Upon retirement, sale or other disposition, the cost and accumulated amortization are eliminated and the gain or loss is included in operations. Depreciation is taken over the estimated useful lives of the assets using the straight-line method. The estimated useful lives of the equipment are shown below. Land is not depreciated. Estimated Useful Life Mine equipment 7 Years General equipment 5 7 Years Automotive 4.5 - 5 Years Small tools 1.25 Years Derivative Financial Instruments The Financial Accounting Standards Board (FASB) provides guidance that requires derivative instruments to be recognized as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value of derivative instruments depends on their intended use and resulting hedge designations. For derivative instruments designated as hedges, the changes in fair value are recorded in the balance sheets as a component of accumulated other comprehensive income (loss). Changes in the fair value of derivative instruments not designated as hedges are recorded in the consolidated statements of operations, generally as a component of other income (expense). Net Income (Loss) Per Share Basic earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During the periods when they are anti-dilutive, common stock equivalents, if any, are not considered in the computation. For the three months ended September 30, 2019, the impact of outstanding stock equivalents has not been included as they would be anti-dilutive. A reconciliation of the weighted average shares outstanding used in the basic and diluted earnings per share (EPS) computation is as follows: Net Income (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount For the three months ended September 30, 2018 Basic EPS Income available to common stockholders $ 146,292 300,000,000 $ 0.00 Diluted EPS Dilutive shares from options and warrants 100,000 Income available to common stockholders plus assumed conversions $ 146,292 300,100,000 $ 0.00 The number of stock options excluded from the calculation of diluted earnings per share for the three months ended September 30, 2018 was 100,000 and excluded warrants was 4,320,000, because their inclusion would have been anti-dilutive. Stock-Based Compensation Share-based compensation is accounted for based on the requirements of ASC 718, CompensationStock Compensation (ASC 718), which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). ASC 718 also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC 505, EquityEquity Based Payments to Non-Employees (ASC 505-50), for share-based payments to consultants and other third parties, compensation expense is determined at the measurement date, which is the grant date. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company accounts for share-based compensation on the grant date fair value of the award. The Company estimates the fair value of the award using the Black-Scholes option pricing model for valuation of the share-based payments. The Company believes this model provides the best estimate of fair value Accounting Standards to be Adopted in Future Periods In February 2016, the FASB issued ASU Leases (Topic 842), which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with a term of more than one year. Accounting by lessors will remain similar to existing U.S. GAAP. Subsequent accounting standards updates have been issued, which amend and/or clarify the application of ASU The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company adopted Topic 842 as of July 1, 2019 and at this time In June 2018, the FASB issued ASU 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted, but no earlier than adoption of ASC 606. The Company adopted ASU 2018-07, effective July 1, 2019, and determined the adoption of this standard did not have a material impact on the Companys consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies and adds various disclosure requirements related to fair value disclosures. Disclosures related to transfers between fair value hierarchy levels will be removed and further detail around changes in unrealized gains and losses for the period and unobservable inputs used in determining level 3 fair value measurements will be added, among other changes. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating this guidance and the impact on its Consolidated Financial Statements. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows. Mine Development Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure in an underground mine. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as exploration expense. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves. Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting non-reserve mineralization to proven and probable reserves. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of costs applicable to sales. As of September 30, 2019, the Company has not established proven or probable reserves or established the commercial feasibility of any of our exploration projects and all exploration costs are being expensed. The Company may never identify proven and probable reserves. Mineral Rights Costs of exploration, carrying and retaining unproven mineral lease properties are expensed as incurred. The Company expenses all mineral exploration costs as incurred as it is still in the exploration stage. If the Company identifies proven and probable reserves in its investigation of its properties and upon development of a plan for operating a mine, it would enter the development stage and capitalize future costs until production is established. To date, the Company has not established the commercial feasibility of any exploration projects; therefore, all exploration costs are expensed as incurred. Mineral properties are capitalized at their fair value at the acquisition date, either as an individual asset purchase or as part of a business combination. ASC 930-805, Extractive Activities-Mining: Business Combinations. ASC 930-805 states that mineral rights consist of the legal right to explore, extract, and retain at least a portion of the benefits from mineral deposits. Mining assets include mineral rights. Acquired mineral rights are considered tangible assets under ASC 930-805. As a result, the direct costs to acquire mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated with acquiring patented and unpatented mining claims. When a property reaches the production stage, the related capitalized costs are amortized on a units-of-production basis over the proven and probable reserves following the commencement of production. The Company assesses the carrying costs of the capitalized mineral properties for impairment under ASC 360-10, Impairment of long-lived assets, and evaluates the carrying value under ASC 930-360, Extractive Activities - Mining, annually. An impairment is recognized when the sum of the expected undiscounted future cash flows is less than the carrying amount of the mineral properties. Impairment losses, if any, are measured as the excess of the carrying amount of the mineral properties over its estimated fair value. When it is determined that a mineral property can be economically developed as a result of establishing reserves, subsequent mine development is capitalized and are amortized using the units of production method over the estimated life of the ore body based on estimated recoverable tonnage in proven and probable reserves. We may never identify proven and probable reserves. At the time the Company has a revenue stream from a project, the Company will amortize any capitalized balance each quarter. Companies that have reserves under SEC Industry Guide 7 typically capitalize these costs, and subsequently depreciate or amortize them on a units-of-production basis as reserves are mined. Unlike these other companies, our properties have no reserves and we will depreciate or amortize any capitalized costs based on the most appropriate amortization method, which includes straight-line or units-of-production method over the estimated remaining life of the mine, as determined by our geologist. As we have no reliable information to compute a units of production methodology, we will amortize our capitalized costs on a straight-line basis over the estimated remaining life of the mine as determined by our geologist. Because of these and other differences, our financial statements may not be comparable to the financial statements of mining companies that have proven and probable reserves on their properties. Reclamation Costs Reclamation obligations are recognized when incurred and recorded as liabilities at fair value. The liability is accreted over time through periodic charges to accretion expense. The asset retirement cost is capitalized as part of the assets carrying value and depreciated over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. The reclamation obligation is based on when spending for an existing disturbance will occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at each mine site in accordance with the provisions of ASC 440, Asset Retirement and Environmental Obligations, which establishes the standards for the initial measurement and subsequent accounting for obligations associated with the sale, abandonment, or other disposal of long-lived tangible assets arising from the acquisition, construction or development and for normal operations of such assets. No reclamation costs were required for the three months ended September 30, 2019. |
NOTE 3 - PROPERTY AND EQUIPMENT
NOTE 3 - PROPERTY AND EQUIPMENT | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 3 - PROPERTY AND EQUIPMENT | NOTE 3 PROPERTY AND EQUIPMENT Property and equipment consist of the following at September 30, 2019 and June 30, 2019: September 30, June 30, 2019 2019 Vehicles $ 20,725 $ 20,725 Small tools 4,882 Mining equipment 178,871 4,818 Land, non-mineral 35,000 239,478 25,543 Less Accumulated depreciation (6,670 ) $ 232,808 $ 25,543 During the three-month periods ended September 30, 2019 and 2018 the Company recognized depreciation expense of $6,670 and $0, respectively. The Company during the current quarter, began maintenance and repair activities at the Jim Crow mine site along with geological work on the site and related mine ore material. The Company during this quarter purchased the required materials and equipment to perform the required activities under our mine manager. During the quarter our major mining equipment purchases aggregated $174,053. The significant acquisitions were mainly a crusher, generators, wheel loader, conveyors and freight on related heavy equipment purchases. We also purchased a site for a storage yard for our mine inventory for $35,000 and is accessible to our Billali and Jim Crow mines. The property consist of 1.64 acres, has water and electricity to the property, a night security light and security fencing with a truck access gate. |
NOTE 4 -MINERAL PROPERTIES
NOTE 4 -MINERAL PROPERTIES | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 4 -MINERAL PROPERTIES | NOTE 4 MINERAL PROPERTIES The Company has capitalized acquisition costs on mineral properties as follows: September 30, June 30, 2019 2019 Alhambra - Blackhawk project $ 3,115,365 $ 3,115,365 Billali Jim Crow Imperial mineral rights project 400,000 200,000 3,515,365 3,315,365 Less Accumulated amortization $ 3,515,365 $ 3,315,365 Exploration Status We have not established that the Alhambra - Blackhawk project or Billali Mine - Jim Crow mine rights projects contain proven or probably reserves, as defined under Industry Guide 7. Minimal exploration activities have commenced to date and minimal exploration costs have been incurred and expensed. To date, the Company has not (i) commenced or adopted plans to conduct any exploration, (ii) prepared drilling plans, proposals, timetables or budgets for exploration work, or (iii) identified engineers and other personnel that will conduct or assist in any exploration work. The Company will need to raise funds to conduct exploration work and it currently lacks a firm financing commitment for any exploration activities. The Company commenced development of the Jim Crow mine in late 2019. Work to date has consisted of beginning the upgrading of the surface facilities, rehabilitating the shaft, expanding the hoisting capability and underground development on three levels. A crushing plant was purchased and installed at Duncan, Arizona, in late 2019. Acquired mineral rights are considered tangible assets under ASC 930-805. ASC 930-805 requires that mineral rights be recognized at fair value as of the acquisition date. Mining assets include mineral rights. The payments made under the Billali Mine - Jim Crow Mine Agreement are capitalized by the Company and when a revenue stream is attained the capitalized balance will amortized. |
NOTE 4 - ACCRUED LIABILITIES
NOTE 4 - ACCRUED LIABILITIES | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 4 - ACCRUED LIABILITIES | NOTE 5 ACCRUED LIABILITIES Accrued liabilities consist of the following at September 30, 2019 and June 30, 2019: September 30, June 30, 2019 2019 Interest $ 207,442 $ 194,318 Vacation 15,771 15,771 Payroll 119,794 124,623 Franchise taxes 8,697 8,697 Other 44,579 29,579 Audit 18,557 18,557 Property taxes 253,523 253,523 $ 668,363 $ 645,068 |
NOTE 6 - NOTES PAYABLE
NOTE 6 - NOTES PAYABLE | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 6 - NOTES PAYABLE | NOTE 6 NOTES PAYABLE Installment Note On June 1, 2012, the Company entered into an installment sales contract for $593,657 to purchase certain equipment. The term of the agreement is for 48 months at an interest rate of 5.75%, with the equipment securing the loan. The balance owed on the note was $398,793 at September 30, 2019 and June 30, 2019. The Company has been unable to make its monthly payments since November 2013, and has been in default since that time. The equipment has been returned to the vendor for sale and remains unsold at September 30, 2019. Interest expense for the three months ended September 30, 2019 and 2018 was $5,733, respectively. Accrued interest on the note at September 30, 2019 and June 30, 2019 was $116,351 and $110,618, respectively. Note Payable An individual during the prior fiscal year loaned Company $239,750 of which the Company paid back $40,000 during that current fiscal year and $40,000 was paid back during the current quarter. The loan is at an annual interest rate of 6%, has no stated due date and is payable on demand by the lender. Accrued interest on the loan at September 30, 2019 and June 30, 2019 was $10,531 and $7,793, respectively. Interest expense on the loan for the three months ended September 30, 2019 and 2018 is $2,738 and $0, respectively. The following summarizes notes payable: September 30, June 30, 2019 2019 Installment sales contract on equipment, interest at 5.75%, payable in 48 monthly installments of $13,874, including interest through July 2016. $ 398,793 $ 398,793 Note payable 159,750 199,750 Notes payable - current $ 558,543 $ 598,543 |
NOTE 7 - FAIR VALUE MEASUREMENT
NOTE 7 - FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 7 - FAIR VALUE MEASUREMENTS | NOTE 7 FAIR VALUE MEASUREMENTS The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (Paragraph 820-10-35-37) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Lev e Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. A slight change in unobservable inputs such as volatility can significantly have a significant impact on the fair value measurement of the derivatives liabilities. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Companys financial assets and liabilities, such as cash and accounts payable approximate their fair values because of the short maturity of these instruments. |
NOTE 8 - CONTINGENCIES AND COMM
NOTE 8 - CONTINGENCIES AND COMMITMENTS | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 8 - CONTINGENCIES AND COMMITMENTS | NOTE 8 CONTINGENCIES AND COMMITMENTS Billali and Jim Crow/Imperial Mines Project The Company determined the Agreement on the Billali and Jim Crow/Imperial mines is effectively a lease and is cancellable at any time by the Company. Costs of mineral lease renewals, exploration, carrying and retaining unproven mineral lease properties are expensed as incurred. The Company expenses all mineral exploration costs as incurred as it is still in the exploration stage. If the Company identifies proven and probable reserves in its investigation of its properties and upon development of a plan for operating a mine, it would enter the development stage and capitalize future costs until production is established. The Company can cancel the Agreement at any time as detailed in the Agreement. As of September 30, 2019, the Company has not established the commercial feasibility of any of our exploration projects; therefore, all exploration costs are being expensed. In the three months ended September 30, 2019, we paid and capitalized $200,000 under the Agreement. Acquired mineral rights are considered tangible assets under ASC 930-805. As a result, the direct costs to acquire mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated with acquiring patented and unpatented mining claims Payments under the Amended Agreement No. 4 dated effective October 7, 2020, on the Billali and Jim Crow/Imperial project are as follows: The Total Purchase Price of $10,000,000 will be paid as follows: (i) (ii) (iii) (iv) Office and Real Property Leases On August 1, 2015, the Company moved the office to a single room located in Albuquerque, NM, at the home of the CFO for a monthly rent of $500 until the Company is required to lease increased office space due to additional personnel requirements. Rent expense totaled $1,500 for the three months ended September 30, 2019 and 2018, respectively. Title to Mineral Properties Although the Company has taken steps, consistent with industry standards, to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Companys title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects. |
NOTE 9- STOCKHOLDERS' DEFICIT
NOTE 9- STOCKHOLDERS' DEFICIT | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 9- STOCKHOLDERS' DEFICIT | NOTE 9 STOCKHOLDERS' DEFICIT Common Stock Transactions For the three months ended September 30, 2019: (i) Issued 181,466 shares of restricted common stock for consulting services at a value of $15,279 on the date of issuance; (ii) Issued an aggregate of 12,285,714 shares of restricted common stock to accredited investors for cash proceeds of $860,000. Stock Warrants During the three months ended September 30, 2019, the Company issued no new warrants and no warrants expired. Stock Options During three months ended September 30, 2019, the Company granted no new options and no options expired. Stock option and warrant activity, for the three months ended September 30, 2019, are as follows: Stock Options Stock Warrants Weighted Weighted Average Exercise Shares Price Shares Price Outstanding at June 30, 2019 30,100,000 $0.05 100,000 $0.15 Granted Canceled Expired Exercised Outstanding at September 30, 2019 30,100,000 $0.05 100,000 $0.15 Stock options and warrants outstanding and exercisable at September 30, 2019 are as follows: Outstanding and Exercisable Options O utstanding and Exercisable Warrants Weighted Weighted Average Average Contractual Weighted Contractual Weighted Exercise Remaining Average Exercise Remaining Average Price Outstanding Exercisable Life Exercise Price Outstanding Exercisable Life Exercise Range Number Number (in Years) Price Range Number Number (in Years) Price $0.07 100,000 100,000 .26 $ 0.07 $ 0.15 100,000 100,000 3.21 $ 0.15 $0.05 30,000,000 30,000,000 4.47 $ 0.05 30,100,000 30,100,000 100,000 100,000 Outstanding Options 4.46 $ 0.05 Outstanding Warrants 3.21 $ 0.15 Exercisable Options 4.46 $ 0.05 Exercisable Warrants 3.21 $ 0.15 As of September 30, 2019, the aggregate intrinsic value of all stock options and warrants vested was $992,300. The intrinsic value of each option share is the difference between the fair market value of the common stock and the exercise price of such option or warrant share to the extent it is "in-the-money". Aggregate intrinsic value represents the value that would have been received by the holders of in-the-money options had they exercised their options on the last trading day of the quarter and sold the underlying shares at the closing stock price on such day. The intrinsic value calculation is based on the $0.083 closing stock price of the common stock on September 30, 2019. The total intrinsic value associated with options exercised during the three months ended September 30, 2019, was $0. Intrinsic value of exercised shares is the total value of such shares on the date of exercise less the cash received from the option or warrant holder to exercise the options. |
NOTE 10 - RELATED PARTY TRANSAC
NOTE 10 - RELATED PARTY TRANSACTIONS | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 10 - RELATED PARTY TRANSACTIONS | NOTE 10 RELATED PARTY TRANSACTIONS On August 1, 2015, the Company leased a home office space from the Companys CFO for $500 a month for the corporate administrative office in Albuquerque, NM until such time growth requires a larger corporate administrative office. Rent expense for the three months ended September 30, 2019 and 2018 was $1,500 respectively. The board authorized on June 16, 2016, the hiring of Nataliia Mueller, wife of the Companys CFO, with a current annual wage of $60,000 as an assistant to the CFO. During the fiscal year ended June 30, 2019, the CFO for the Company loaned the Company $10,000 and deferred net salary aggregating $51,848 into a note at 6% per annum and during the quarter ended September 30, 2019, loaned an additional $10,000. Accrued interest on the note at September 30, 2019 and June 30, 2019, was $2,680 and $1,650, respectively. Interest expense on the note for the three months ended September 30, 2019 and 2018 was $1,029 and $0, respectively. The loan has no stated due date and is payable on demand by the lender. The combined loan and interest balance at September 30, 2019 and June 30, 2019 was $74,528 and $63,499, respectively. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. |
NOTE 11 - LEGAL PROCEEDINGS
NOTE 11 - LEGAL PROCEEDINGS | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 11 - LEGAL PROCEEDINGS | NOTE 11 LEGAL PROCEEDINGS All legal proceedings were stayed with the filing of Chapter 11 bankruptcy. Boart Long year Company v. Lordsburg Mining Company Boart Longyear Company v. Lordsburg Mining Company Boart Longyear Company v. Lordsburg Mining Company Wagner Equipment Co. v. Lordsburg Mining Company The bankruptcy court set up a Trust fund that will be funded by the activities of the Summit mine for five (5) years after reopening of the mine and the trust funds will be distributed by an independent trustee to all credit holders on record. Currently all debts at the time of the bankruptcy are currently due and in default. None of the claims have been reopened since June 2016. In November 2017, the Company entered into substantially identical agreements with Fortune Graphite, Inc. and Worldwide Graphite Producers, Ltd. to acquire a total of four placer claims for aggregate consideration of Can$400,000 and the issuance of 10,000,000 shares of Company common stock. The Company owes the sellers Can$140,000 and 10,000,000 shares of Company common stock. To date, the Company has paid Can$260,000. The Company owes the sellers Can$140,000 and 10,000,000 shares of Company common stock. Based upon our subsequent scrutiny and analysis of the transaction, the Company in February 2019 initiated an arbitration proceeding against the seller to void and rescind the purchase of these British Columbia properties, including requesting additional remedies. The Company cannot predict the outcome of this arbitration, and there can be no assurance that the Company will not lose its interest in these claims, or owe seller the remaining outstanding amounts. In connection with this arbitration, the Companys legal position is to void the transaction and, due to the uncertainty of the outcome, has provided an impairment of the amount at June 30, 2019, in the amount of $210,116. In November 2018, Santa Fe filed a complaint in Luna County District Court, State of New Mexico, requesting a $930,000 money judgment against Mr. and Mrs. Laws for misappropriation of Company funds, in addition to foreclosing on the mortgage Mr. and Ms. Laws granted to Santa Fe on real property to secure the promissory note located in Luna County, New Mexico. In November 2018, Santa Fe filed a similar complaint in Grant County District Court, State of New Mexico, as Mr. and Mrs. Laws and XYZ Ranch Estates, LLC granted Santa Fe a deed of trust and a mortgage, respectively, on several pieces of real property in Grant County, New Mexico. Mr. Laws also granted Santa Fe a security agreement on an airplane located in Grant County, New Mexico. The complaint in Grant County requested a money judgment in the amount of $930,000 against Mr. and Mrs. Laws, in addition to a request to foreclose on the assets pledged to us located in Grant County, New Mexico. Subsequent professional costs including legal, auditing, forensic accounting and related filing costs related to this event have been added to the amounts owed by Mr. Laws. At the time of filing this report, we have determined costs associated with Mr. Laws action currently aggregates $1,651,263, of which we have collected $485,966 as of the date of filing this report. As of the filing of this report, Mr. Laws has pleaded guilty to various charges brought against him by the U. S. District Attorney for the District of New Mexico , which include the Company allegations. Mr. Laws is currently awaiting sentencing on the pleaded to charges. The Company attorneys have filed all required documents for future monetary settlements to be determined by the court and the Company does not anticipate receiving a substantial reimbursement of the remaining Laws costs. The Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) have each initiated investigations into the Company and certain other individuals, resulting from the Laws transactions and related misappropriation of funds described herein. The SEC has obtained a formal order to investigate the Company. The DOJ investigation is still preliminary. These types of investigations are expensive, time-consuming for management, and unpredictable often resulting in other aspects of the Companys operations becoming subject to regulatory scrutiny. These investigations are ongoing and no prediction can be made regarding the timing or outcome of such matters including remedial action pursued against the Company and others, including its officers and directors. In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated, and the Company discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its financial statements not to be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. We are subject from time to time to litigation, claims and suits arising in the ordinary course of business. Other than the above described litigation, as of September 30, 2019, we were not a party to any material litigation, claim or suit whose outcome could have a material effect on our financial statements. Because litigation outcomes are inherently unpredictable, the Companys evaluation of legal proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. If the assessments indicate that loss contingencies that could be material to any one of its financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company discloses the nature of the loss contingencies, together with an estimate of the range of possible loss or a statement that such loss is not reasonably estimable. While the consequences of certain unresolved proceedings are not presently determinable, and an estimate of the probable and reasonably possible loss or range of loss in excess of amounts accrued for such proceedings cannot be reasonably made, an adverse outcome from such proceedings could have a material adverse effect on its financial statements in any given reporting period. However, in the opinion of Management, after consulting with legal counsel, the ultimate liability related to the current outstanding litigation is not expected to have a material adverse effect on its financial statements. |
NOTE 12 - SUBSEQUENT EVENTS
NOTE 12 - SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
NOTE 12 - SUBSEQUENT EVENTS | NOTE 12 SUBSEQUENT EVENTS Recent Issuances of Unregistered Securities In the period from October 1, 2019 through October 14, 2020, the Company sold an aggregate of 24,107,143 restricted shares of common stock to nine existing accredited investors for cash proceeds $1,482,500. During this period the Company sold an aggregate of 6,642,858 restricted shares of common stock to the chairman of the board for cash proceeds $375,000. In the period from March 2020 through October 14, 2020, the Company issued warrants to existing accredited investors aggregating 6,541,667, and 2,250,000 warrants to the chairman of the board that were attached to restricted stock purchases. The warrants were vested at issuance, have a two or three-year life and an exercise price of $0.05 to $0.07 per share. During the period from October 1, 2019 through October 14, 2020, the Company issued 797,517 restricted shares of common stock for consulting services at a market value of $62,707 on the date of issuance. On April 10, 2020, the Company converted $100,000 of accrued salary for the Companys CFO into 2,000,000 shares of restricted common stock at a market value of $117,000 on the date of grant and recorded a loss on debt conversion of $17,000. Warrants issued in conjunction with the conversion were 1,000,000 vested three-year warrants and have an exercise price of $0.05 per share. On June 30, 2020, the Company converted a note payable with the Companys CFO consisting of principal and interest of $42,037 and $6,178, respectively, into 964,299 shares of restricted common stock at $0.05 per share. The market value on the date of conversion was $67,501 and on the date of conversion the Company recorded a loss on debt conversion of $19,286. In conjunction with the conversion, 482,149 vested three-year warrants were granted and have an exercise price of $0.05 per share. On August 7, 2020, former Chief Financial Officer (CFO) of the Company resigned from that position. As the former CFO has significant institutional knowledge and background Company knowledge, the Board offered the individual the position of Managing Director of Mining Operations with a signing bonus of $20,000 and 750,00 shares of restricted common stock and an employment agreement was signed. Miscellaneous Events On December 18, 2019, Mr. Daniel Gorski, our consultant geologist, was appointed to our board of directors. As of filing of this report, the Company has determined that Mr. Laws owes the Company $1,651,263, net of funds recovered from Mr. Laws of $485,966. This amount represents an increase consisting of legal, forensic accounting services incurred by the Company and the audit restatement of our fiscal year 2017 that was attributable the misappropriation of funds. The current amount does not include any penalties or interest as provided in the secured promissory note and security agreement signed by Mr. Laws. The Company does not anticipate collecting a material amount due from Mr. Laws and any recovery will be determined by the bankruptcy court. As of the filing of this report, Mr. Laws has pleaded guilty to various charges brought against him by government officials, which include the Company allegations. Mr. Laws is currently awaiting sentencing on the charges he plead to. The Company attorneys have filed all required documents for future monetary settlements to be determined by the court. Effective July 7, 2020, the Company retained a new Chief Financial Officer and an employment agreement was signed. The Company signed employment agreements with the new Chief Financial Officer and Managing Director of Mining Operations. The agreements are a one-year employment agreement with the Company, with automatic successive one-year renewals provided that neither party has provided notice of termination prior to 30 days from the end of such applicable term. |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation and Going Concern (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Basis of Presentation and Going Concern | Basis of Presentation and Going Concern The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due. The Company has recorded net loss of $735,985 for the three months ended September 30, 2019, and has a total accumulated deficit of $94,214,655 and a working capital deficit at September 30, 2019 of $4,384,295. The Company used in operating activities approximately $469,000 during the current period of measurement. The Company currently has no source of generating revenue. To continue as a going concern, the Company is dependent on continued capital financing for project development, repayment of various debt facilities and payment of current operating expenses until the Company has put into production an acceptable source to generate mineralized ore to generate a revenue stream. Currently we have no commitment from any party to provide additional working capital and there is no assurance that any funding will be available as required, or if available, that its terms will be favorable or acceptable to the Company. At September 30, 2019, the Company was in default on delinquent payments of approximately: $3.04 million on accounts payable, $398,000 on a note payable and $643,000 on other accrued liabilities. The unaudited consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
NOTE 2 - SUMMARY OF SIGNIFICA_3
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries AZCO Mica, Inc., a Delaware corporation, The Lordsburg Mining Company, a New Mexico corporation, and Santa Fe Gold Barbados Corporation, a Barbados corporation, Santa Fe Acquisitions Company, a New Mexico Limited Liability Company, Mineral Acquisitions, a New Mexico Limited Liability Company and Bullards Peak Corporation, a New Mexico Corporation. All significant inter-company accounts and transactions have been eliminated in consolidation. |
NOTE 2 - SUMMARY OF SIGNIFICA_4
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Estimates (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Estimates | Use of Estimates The preparation of consolidated 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 disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates under different assumptions or conditions. Significant estimates are used when accounting for the Company's carrying value of mineral properties, fixed assets, depreciation, amortization, accruals, derivative instrument liabilities, valuation of warrants, taxes and contingencies, and stock-based compensation. |
NOTE 2 - SUMMARY OF SIGNIFICA_5
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measurements (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Fair Value Measurements | Fair Value Measurements The carrying values of cash and cash equivalents, accounts payable and accrued liabilities approximated their related fair values as of September 30, 2019, and June 30, 2019, due to the relatively short-term nature of these instruments. |
NOTE 2 - SUMMARY OF SIGNIFICA_6
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash balances. |
NOTE 2 - SUMMARY OF SIGNIFICA_7
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Property and Equipment | Property and Equipment Property and equipment are carried at cost. Maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Expenditures for new property or equipment and expenditures that extend the useful lives of existing property and equipment are capitalized and recorded at cost. Upon retirement, sale or other disposition, the cost and accumulated amortization are eliminated and the gain or loss is included in operations. Depreciation is taken over the estimated useful lives of the assets using the straight-line method. The estimated useful lives of the equipment are shown below. Land is not depreciated. Estimated Useful Life Mine equipment 7 Years General equipment 5 7 Years Automotive 4.5 - 5 Years Small tools 1.25 Years |
NOTE 2 - SUMMARY OF SIGNIFICA_8
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Derivative Financial Instruments (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Derivative Financial Instruments | Derivative Financial Instruments The Financial Accounting Standards Board (FASB) provides guidance that requires derivative instruments to be recognized as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value of derivative instruments depends on their intended use and resulting hedge designations. For derivative instruments designated as hedges, the changes in fair value are recorded in the balance sheets as a component of accumulated other comprehensive income (loss). Changes in the fair value of derivative instruments not designated as hedges are recorded in the consolidated statements of operations, generally as a component of other income (expense). |
NOTE 2 - SUMMARY OF SIGNIFICA_9
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Net Income (Loss) Per Share (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During the periods when they are anti-dilutive, common stock equivalents, if any, are not considered in the computation. For the three months ended September 30, 2019, the impact of outstanding stock equivalents has not been included as they would be anti-dilutive. A reconciliation of the weighted average shares outstanding used in the basic and diluted earnings per share (EPS) computation is as follows: Net Income (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount For the three months ended September 30, 2018 Basic EPS Income available to common stockholders $ 146,292 300,000,000 $ 0.00 Diluted EPS Dilutive shares from options and warrants 100,000 Income available to common stockholders plus assumed conversions $ 146,292 300,100,000 $ 0.00 The number of stock options excluded from the calculation of diluted earnings per share for the three months ended September 30, 2018 was 100,000 and excluded warrants was 4,320,000, because their inclusion would have been anti-dilutive. |
NOTE 2 - SUMMARY OF SIGNIFIC_10
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Stock-Based Compensation (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Stock-Based Compensation | Stock-Based Compensation Share-based compensation is accounted for based on the requirements of ASC 718, CompensationStock Compensation (ASC 718), which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). ASC 718 also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC 505, EquityEquity Based Payments to Non-Employees (ASC 505-50), for share-based payments to consultants and other third parties, compensation expense is determined at the measurement date, which is the grant date. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company accounts for share-based compensation on the grant date fair value of the award. The Company estimates the fair value of the award using the Black-Scholes option pricing model for valuation of the share-based payments. The Company believes this model provides the best estimate of fair value |
NOTE 2 - SUMMARY OF SIGNIFIC_11
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Accounting Standards to be Adopted in Future Periods (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Accounting Standards to be Adopted in Future Periods | Accounting Standards to be Adopted in Future Periods In February 2016, the FASB issued ASU Leases (Topic 842), which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with a term of more than one year. Accounting by lessors will remain similar to existing U.S. GAAP. Subsequent accounting standards updates have been issued, which amend and/or clarify the application of ASU The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company adopted Topic 842 as of July 1, 2019 and at this time In June 2018, the FASB issued ASU 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted, but no earlier than adoption of ASC 606. The Company adopted ASU 2018-07, effective July 1, 2019, and determined the adoption of this standard did not have a material impact on the Companys consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies and adds various disclosure requirements related to fair value disclosures. Disclosures related to transfers between fair value hierarchy levels will be removed and further detail around changes in unrealized gains and losses for the period and unobservable inputs used in determining level 3 fair value measurements will be added, among other changes. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating this guidance and the impact on its Consolidated Financial Statements. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows. |
NOTE 2 - SUMMARY OF SIGNIFIC_12
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Mine Development (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Mine Development | Mine Development Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure in an underground mine. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as exploration expense. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves. Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting non-reserve mineralization to proven and probable reserves. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of costs applicable to sales. As of September 30, 2019, the Company has not established proven or probable reserves or established the commercial feasibility of any of our exploration projects and all exploration costs are being expensed. The Company may never identify proven and probable reserves. |
NOTE 2 - SUMMARY OF SIGNIFIC_13
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Mineral Rights (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Mineral Rights | Mineral Rights Costs of exploration, carrying and retaining unproven mineral lease properties are expensed as incurred. The Company expenses all mineral exploration costs as incurred as it is still in the exploration stage. If the Company identifies proven and probable reserves in its investigation of its properties and upon development of a plan for operating a mine, it would enter the development stage and capitalize future costs until production is established. To date, the Company has not established the commercial feasibility of any exploration projects; therefore, all exploration costs are expensed as incurred. Mineral properties are capitalized at their fair value at the acquisition date, either as an individual asset purchase or as part of a business combination. ASC 930-805, Extractive Activities-Mining: Business Combinations. ASC 930-805 states that mineral rights consist of the legal right to explore, extract, and retain at least a portion of the benefits from mineral deposits. Mining assets include mineral rights. Acquired mineral rights are considered tangible assets under ASC 930-805. As a result, the direct costs to acquire mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated with acquiring patented and unpatented mining claims. When a property reaches the production stage, the related capitalized costs are amortized on a units-of-production basis over the proven and probable reserves following the commencement of production. The Company assesses the carrying costs of the capitalized mineral properties for impairment under ASC 360-10, Impairment of long-lived assets, and evaluates the carrying value under ASC 930-360, Extractive Activities - Mining, annually. An impairment is recognized when the sum of the expected undiscounted future cash flows is less than the carrying amount of the mineral properties. Impairment losses, if any, are measured as the excess of the carrying amount of the mineral properties over its estimated fair value. When it is determined that a mineral property can be economically developed as a result of establishing reserves, subsequent mine development is capitalized and are amortized using the units of production method over the estimated life of the ore body based on estimated recoverable tonnage in proven and probable reserves. We may never identify proven and probable reserves. At the time the Company has a revenue stream from a project, the Company will amortize any capitalized balance each quarter. Companies that have reserves under SEC Industry Guide 7 typically capitalize these costs, and subsequently depreciate or amortize them on a units-of-production basis as reserves are mined. Unlike these other companies, our properties have no reserves and we will depreciate or amortize any capitalized costs based on the most appropriate amortization method, which includes straight-line or units-of-production method over the estimated remaining life of the mine, as determined by our geologist. As we have no reliable information to compute a units of production methodology, we will amortize our capitalized costs on a straight-line basis over the estimated remaining life of the mine as determined by our geologist. Because of these and other differences, our financial statements may not be comparable to the financial statements of mining companies that have proven and probable reserves on their properties. |
NOTE 2 - SUMMARY OF SIGNIFIC_14
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Reclamation Costs (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Policies | |
Reclamation Costs | Reclamation Costs Reclamation obligations are recognized when incurred and recorded as liabilities at fair value. The liability is accreted over time through periodic charges to accretion expense. The asset retirement cost is capitalized as part of the assets carrying value and depreciated over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. The reclamation obligation is based on when spending for an existing disturbance will occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at each mine site in accordance with the provisions of ASC 440, Asset Retirement and Environmental Obligations, which establishes the standards for the initial measurement and subsequent accounting for obligations associated with the sale, abandonment, or other disposal of long-lived tangible assets arising from the acquisition, construction or development and for normal operations of such assets. No reclamation costs were required for the three months ended September 30, 2019. |
NOTE 2 - SUMMARY OF SIGNIFIC_15
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Schedule of Property, Plant and Equipment, Useful Life (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Property, Plant and Equipment, Useful Life | Estimated Useful Life Mine equipment 7 Years General equipment 5 7 Years Automotive 4.5 - 5 Years Small tools 1.25 Years |
NOTE 2 - SUMMARY OF SIGNIFIC_16
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Net Income (Loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Net Income (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount For the three months ended September 30, 2018 Basic EPS Income available to common stockholders $ 146,292 300,000,000 $ 0.00 Diluted EPS Dilutive shares from options and warrants 100,000 Income available to common stockholders plus assumed conversions $ 146,292 300,100,000 $ 0.00 |
NOTE 3 - PROPERTY AND EQUIPME_2
NOTE 3 - PROPERTY AND EQUIPMENT: Property, Plant and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Property, Plant and Equipment | September 30, June 30, 2019 2019 Vehicles $ 20,725 $ 20,725 Small tools 4,882 Mining equipment 178,871 4,818 Land, non-mineral 35,000 239,478 25,543 Less Accumulated depreciation (6,670 ) $ 232,808 $ 25,543 |
NOTE 4 -MINERAL PROPERTIES_ Acq
NOTE 4 -MINERAL PROPERTIES: Acquisition costs on mineral properties (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Acquisition costs on mineral properties | September 30, June 30, 2019 2019 Alhambra - Blackhawk project $ 3,115,365 $ 3,115,365 Billali Jim Crow Imperial mineral rights project 400,000 200,000 3,515,365 3,315,365 Less Accumulated amortization $ 3,515,365 $ 3,315,365 |
NOTE 4 - ACCRUED LIABILITIES_ S
NOTE 4 - ACCRUED LIABILITIES: Schedule of Accrued Liabilities (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Accrued Liabilities | September 30, June 30, 2019 2019 Interest $ 207,442 $ 194,318 Vacation 15,771 15,771 Payroll 119,794 124,623 Franchise taxes 8,697 8,697 Other 44,579 29,579 Audit 18,557 18,557 Property taxes 253,523 253,523 $ 668,363 $ 645,068 |
NOTE 6 - NOTES PAYABLE_ Schedul
NOTE 6 - NOTES PAYABLE: Schedule of Notes Payable (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Notes Payable | The following summarizes notes payable: September 30, June 30, 2019 2019 Installment sales contract on equipment, interest at 5.75%, payable in 48 monthly installments of $13,874, including interest through July 2016. $ 398,793 $ 398,793 Note payable 159,750 199,750 Notes payable - current $ 558,543 $ 598,543 |
NOTE 9- STOCKHOLDERS' DEFICIT_
NOTE 9- STOCKHOLDERS' DEFICIT: Share-based Payment Arrangement, Option, Activity (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Share-based Payment Arrangement, Option, Activity | Stock Options Stock Warrants Weighted Weighted Average Exercise Shares Price Shares Price Outstanding at June 30, 2019 30,100,000 $0.05 100,000 $0.15 Granted Canceled Expired Exercised Outstanding at September 30, 2019 30,100,000 $0.05 100,000 $0.15 Stock options and warrants outstanding and exercisable at September 30, 2019 are as follows: Outstanding and Exercisable Options O utstanding and Exercisable Warrants Weighted Weighted Average Average Contractual Weighted Contractual Weighted Exercise Remaining Average Exercise Remaining Average Price Outstanding Exercisable Life Exercise Price Outstanding Exercisable Life Exercise Range Number Number (in Years) Price Range Number Number (in Years) Price $0.07 100,000 100,000 .26 $ 0.07 $ 0.15 100,000 100,000 3.21 $ 0.15 $0.05 30,000,000 30,000,000 4.47 $ 0.05 30,100,000 30,100,000 100,000 100,000 Outstanding Options 4.46 $ 0.05 Outstanding Warrants 3.21 $ 0.15 Exercisable Options 4.46 $ 0.05 Exercisable Warrants 3.21 $ 0.15 |
NOTE 2 - SUMMARY OF SIGNIFIC_17
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation and Going Concern (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Details | |||
Net loss | $ 735,985 | $ (146,292) | |
Accumulated deficit | 94,214,655 | $ 93,478,670 | |
Working Capital Deficit | $ 4,384,295 |
NOTE 2 - SUMMARY OF SIGNIFIC_18
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Schedule of Property, Plant and Equipment, Useful Life (Details) | 3 Months Ended |
Sep. 30, 2019 | |
Mine equipment | |
Estimated Useful Life | 7 years |
Equipment | |
Estimated Useful Life | 7 years |
Automotive | |
Estimated Useful Life | 5 years |
Small tools | |
Estimated Useful Life | 1 year 3 months |
NOTE 2 - SUMMARY OF SIGNIFIC_19
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Net Income (Loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) | 3 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Net Income (Numerator) | |
Income available to common stockholders | $ | $ 146,292 |
Dilutive shares from options and warrants | shares | 0 |
Income available to common stockholders plus assumed conversions | $ / shares | $ 146,292 |
Weighted Average Common Shares (Denominator) | |
Income available to common stockholders | $ | $ 300,000,000 |
Dilutive shares from options and warrants | shares | 100,000 |
Income available to common stockholders plus assumed conversions | $ / shares | $ 300,100,000 |
Per Share Amount | |
Income available to common stockholders | $ | $ 0 |
Income available to common stockholders plus assumed conversions | $ / shares | $ 0 |
NOTE 2 - SUMMARY OF SIGNIFIC_20
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Net Income (Loss) Per Share (Details) | 3 Months Ended |
Sep. 30, 2018shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100,000 |
Warrant | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,320,000 |
NOTE 2 - SUMMARY OF SIGNIFIC_21
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Details | ||
Stock-based compensation | $ 15,279 | $ 17,800 |
NOTE 3 - PROPERTY AND EQUIPME_3
NOTE 3 - PROPERTY AND EQUIPMENT: Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Property, Plant and Equipment, gross | $ 239,478 | $ 25,543 |
Less Accumulated depreciation | (6,670) | 0 |
Property and equipment, net | 232,808 | 25,543 |
Automotive | ||
Property, Plant and Equipment, gross | 20,725 | 20,725 |
Small tools | ||
Property, Plant and Equipment, gross | 4,882 | 0 |
Mine equipment | ||
Property, Plant and Equipment, gross | 178,871 | 4,818 |
Land | ||
Property, Plant and Equipment, gross | $ 35,000 | $ 0 |
NOTE 4 -MINERAL PROPERTIES_ A_2
NOTE 4 -MINERAL PROPERTIES: Acquisition costs on mineral properties (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Mineral Properties | $ 3,515,365 | $ 3,315,365 |
Accumulated amortization | 0 | 0 |
Mineral property | 3,515,365 | 3,315,365 |
Alhambra - Blackhawk project | ||
Mineral Properties | 3,115,365 | 3,115,365 |
Billali Mine | ||
Mineral Properties | $ 400,000 | $ 200,000 |
NOTE 4 - ACCRUED LIABILITIES__2
NOTE 4 - ACCRUED LIABILITIES: Schedule of Accrued Liabilities (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Details | ||
Interest | $ 207,442 | $ 194,318 |
Vacation | 15,771 | 15,771 |
Payroll | 119,794 | 124,623 |
Franchise taxes | 8,697 | 8,697 |
Other | 44,579 | 29,579 |
Audit | 18,557 | 18,557 |
Property taxes | 253,523 | 253,523 |
Accrued liabilities | $ 668,363 | $ 645,068 |
NOTE 6 - NOTES PAYABLE (Details
NOTE 6 - NOTES PAYABLE (Details) - Notes Payable 1 - USD ($) | Jun. 01, 2012 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 |
Debt Instrument, Face Amount | $ 593,657 | |||
Debt Instrument, Term | 48 months | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |||
Notes payable | $ 398,793 | $ 398,793 | ||
Interest Expense, Debt | 5,733 | $ 5,733 | ||
Interest Payable, Current | $ 116,351 | $ 110,618 |
NOTE 6 - NOTES PAYABLE_ Sched_2
NOTE 6 - NOTES PAYABLE: Schedule of Notes Payable (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Notes payable | $ 558,543 | $ 598,543 |
Notes Payable 1 | ||
Notes payable | 398,793 | 398,793 |
Notes Payable 2 | ||
Notes payable | $ 159,750 | $ 199,750 |
NOTE 8 - CONTINGENCIES AND CO_2
NOTE 8 - CONTINGENCIES AND COMMITMENTS (Details) - USD ($) | Aug. 01, 2015 | Sep. 30, 2019 | Sep. 30, 2018 |
Operating Leases, Rent Expense | $ 1,500 | $ 1,500 | |
Office Lease | |||
Debt Instrument, Periodic Payment | $ 500 |
NOTE 9- STOCKHOLDERS' DEFICIT (
NOTE 9- STOCKHOLDERS' DEFICIT (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Details | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 181,466 | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 15,279 | |
Share subscriptions issued | 12,285,714 | |
Proceeds from common stock subscriptions | $ 860,000 | $ 200,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 992,300 | |
Share Price | $ 0.083 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0 |
NOTE 9- STOCKHOLDERS' DEFICIT_2
NOTE 9- STOCKHOLDERS' DEFICIT: Share-based Payment Arrangement, Option, Activity (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Stock Option 1 | ||
Stock Options Outstanding | 100,000 | |
Stock Options Outstanding, Weighted Average Exercise Price | $ 0.07 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 100,000 | |
Warrant Option 1 | ||
Stock Options Outstanding | 100,000 | |
Stock Options Outstanding, Weighted Average Exercise Price | $ 0.15 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 100,000 | |
Stock Option 2 | ||
Stock Options Outstanding | 30,000,000 | |
Stock Options Outstanding, Weighted Average Exercise Price | $ 0.05 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 30,000,000 | |
Stock Options Outstanding | 30,100,000 | 30,100,000 |
Stock Options Outstanding, Weighted Average Exercise Price | $ 0.05 | $ 0.05 |
Stock Warrants, outstanding | 100,000 | 100,000 |
Stock Warrants, outstanding, weighted average price | $ 0.15 | $ 0.15 |
Stock Warrants, grants in period | 0 | |
Stock Warrants granted, weighted average price granted | $ 0 | |
Stock Options Canceled | 0 | |
Stock Options Canceled, Weighted Average Exercise Price | $ 0 | |
Options expired | 0 | |
Options expired, Weighted Average Exercise Price | $ 0 | |
Stock Warrants, expired | 0 | |
Stock Warrants expired, weighted average price | $ 0 | |
Stock Warrants, exercised | 0 | |
Stock Warrants exercised, weighted average price | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 30,100,000 |
NOTE 10 - RELATED PARTY TRANS_2
NOTE 10 - RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Operating Leases, Rent Expense | $ 1,500 | $ 1,500 | |
Notes payable and accrued interest to related party | 74,528 | $ 63,499 | |
Mueller | |||
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold | 60,000 | ||
Chief Financial Officer | |||
Proceeds from Related Party Debt | 10,000 | $ 10,000 | |
Deferred Salary | 51,848 | ||
Related Party Transaction, Rate | 6.00% | ||
Interest Payable, Current | 2,680 | $ 1,650 | |
Interest Expense, Debt | $ 1,029 | $ 0 |
NOTE 11 - LEGAL PROCEEDINGS (De
NOTE 11 - LEGAL PROCEEDINGS (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 |
Interest Expense | $ 14,150 | $ 165,783 | ||
Thomas Laws | ||||
British Columbia Properties, Description | Company entered into substantially identical agreements with Fortune Graphite, Inc. and Worldwide Graphite Producers, Ltd. to acquire a total of four placer claims for aggregate consideration of Can$400,000 and the issuance of 10,000,000 shares of Company common stock. The Company owes the sellers Can$140,000 and 10,000,000 shares of Company common stock. To date, the Company has paid Can$260,000. The Company owes the sellers Can$140,000 and 10,000,000 shares of Company common stock. Based upon our subsequent scrutiny and analysis of the transaction, the Company in February 2019 initiated an arbitration proceeding against the seller to void and rescind the purchase of these British Columbia properties, including requesting additional remedies. The Company cannot predict the outcome of this arbitration, and there can be no assurance that the Company will not lose its interest in these claims, or owe seller the remaining outstanding amounts. In connection with this arbitration, the Company’s legal position is to void the transaction and, due to the uncertainty of the outcome, has provided an impairment of the amount at June 30, 2019, in the amount of $210,116 | |||
Loans Pledged as Collateral | $ 930,000 | |||
Boart Long year Company | ||||
Debt Instrument, Face Amount | $ 158,480 | |||
Debt Instrument, Interest Rate During Period | 5.25% | |||
Interest Payable, Current | 30,436 | $ 28,339 | ||
Interest Expense | 2,097 | 2,097 | ||
Wagner Equipment | ||||
Debt Instrument, Face Amount | $ 115,789 | |||
Debt Instrument, Interest Rate During Period | 8.75% | |||
Interest Payable, Current | 50,125 | $ 47,571 | ||
Interest Expense | $ 2,554 | $ 2,554 |
NOTE 12 - SUBSEQUENT EVENTS (De
NOTE 12 - SUBSEQUENT EVENTS (Details) | 3 Months Ended |
Sep. 30, 2019 | |
Subsequent Event 1 | |
Subsequent Event, Description | In the period from October 1, 2019 through October 14, 2020, the Company sold an aggregate of 24,107,143 restricted shares of common stock to nine existing accredited investors for cash proceeds $1,482,500. During this period the Company sold an aggregate of 6,642,858 restricted shares of common stock to the chairman of the board for cash proceeds $375,000. |
Subsequent Event 2 | |
Subsequent Event, Description | In the period from March 2020 through October 14, 2020, the Company issued warrants to existing accredited investors aggregating 6,541,667, and 2,250,000 warrants to the chairman of the board that were attached to restricted stock purchases. The warrants were vested at issuance, have a two or three-year life and an exercise price of $0.05 to $0.07 per share. |
Subsequent Event 3 | |
Subsequent Event, Description | During the period from October 1, 2019 through October 14, 2020, the Company issued 797,517 restricted shares of common stock for consulting services at a market value of $62,707 on the date of issuance. |
Subsequent Event 4 | |
Subsequent Event, Description | On April 10, 2020, the Company converted $100,000 of accrued salary for the Company’s CFO into 2,000,000 shares of restricted common stock at a market value of $117,000 on the date of grant and recorded a loss on debt conversion of $17,000. Warrants issued in conjunction with the conversion were 1,000,000 vested three-year warrants and have an exercise price of $0.05 per share. |
Subsequent Event 5 | |
Subsequent Event, Description | On June 30, 2020, the Company converted a note payable with the Company’s CFO consisting of principal and interest of $42,037 and $6,178, respectively, into 964,299 shares of restricted common stock at $0.05 per share. The market value on the date of conversion was $67,501 and on the date of conversion the Company recorded a loss on debt conversion of $19,286. In conjunction with the conversion, 482,149 vested three-year warrants were granted and have an exercise price of $0.05 per share. |
Subsequent Event 6 | |
Subsequent Event, Description | On August 7, 2020, former Chief Financial Officer (“CFO”) of the Company resigned from that position. As the former CFO has significant institutional knowledge and background Company knowledge, the Board offered the individual the position of Managing Director of Mining Operations with a signing bonus of $20,000 and 750,00 shares of restricted common stock and an employment agreement was signed. |
Subsequent Event 7 | |
Subsequent Event, Description | On December 18, 2019, Mr. Daniel Gorski, our consultant geologist, was appointed to our board of directors. |
Subsequent Event 8 | |
Subsequent Event, Description | As of filing of this report, the Company has determined that Mr. Laws owes the Company $1,651,263, net of funds recovered from Mr. Laws of $485,966. This amount represents an increase consisting of legal, forensic accounting services incurred by the Company and the audit restatement of our fiscal year 2017 that was attributable the misappropriation of funds. The current amount does not include any penalties or interest as provided in the secured promissory note and security agreement signed by Mr. Laws. The Company does not anticipate collecting a material amount due from Mr. Laws and any recovery will be determined by the bankruptcy court. |
Subsequent Event 9 | |
Subsequent Event, Description | As of the filing of this report, Mr. Laws has pleaded guilty to various charges brought against him by government officials, which include the Company allegations. Mr. Laws is currently awaiting sentencing on the charges he plead to. The Company attorneys have filed all required documents for future monetary settlements to be determined by the court. |
Subsequent Event 10 | |
Subsequent Event, Description | Effective July 7, 2020, the Company retained a new Chief Financial Officer and an employment agreement was signed. |
Subsequent Event 11 | |
Subsequent Event, Description | The Company signed employment agreements with the new Chief Financial Officer and Managing Director of Mining Operations. The agreements are a one-year employment agreement with the Company, with automatic successive one-year renewals provided that neither party has provided notice of termination prior to 30 days from the end of such applicable term. |
Uncategorized Items - sfeg-2019
Label | Element | Value |
Notes Payable 2 | ||
Interest Expense, Debt | us-gaap_InterestExpenseDebt | $ 2,738 |
Interest Expense, Debt | us-gaap_InterestExpenseDebt | 0 |
Interest Payable, Current | us-gaap_InterestPayableCurrent | 10,531 |
Interest Payable, Current | us-gaap_InterestPayableCurrent | 7,793 |
Debt Instrument, Face Amount | us-gaap_DebtInstrumentFaceAmount | $ 239,750 |
Debt Instrument, Interest Rate, Stated Percentage | us-gaap_DebtInstrumentInterestRateStatedPercentage | 6.00% |