Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-13627 | |
Entity Registrant Name | Golden Minerals Co | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-4413382 | |
Entity Address, Address Line One | 350 INDIANA STREET, SUITE 650 | |
Entity Address, City or Town | GOLDEN | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80401 | |
City Area Code | 303 | |
Local Phone Number | 839-5060 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | AUMN | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 162,804,612 | |
Entity Central Index Key | 0001011509 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents (Note 3) | $ 8,800 | $ 9,704 |
Short-term investments (Note 3) | 102 | 79 |
Lease receivables | 72 | |
Inventories, net (Note 5) | 1,857 | 284 |
Value added tax receivable, net (Note 6) | 1,103 | 45 |
Prepaid expenses and other assets (Note 4) | 859 | 1,130 |
Total current assets | 12,721 | 11,314 |
Property, plant and equipment, net (Note 7) | 6,521 | 5,520 |
Other long term assets (Note 8) | 820 | 1,472 |
Total assets | 20,062 | 18,306 |
Current liabilities | ||
Accounts payable and other accrued liabilities (Note 9) | 3,346 | 1,318 |
Deferred revenue, current (Note 7) | 116 | 535 |
Other current liabilities (Note 11) | 325 | 667 |
Total current liabilities | 3,787 | 2,520 |
Asset retirement and reclamation liabilities (Note 12) | 3,274 | 3,166 |
Other long term liabilities (Note 11) | 400 | 648 |
Total liabilities | 7,461 | 6,334 |
Commitments and contingencies (Note 20) | ||
Equity (Note 15) | ||
Common stock, $.01 par value, 350,000,000 shares authorized; 162,804,612 and 157,512,652 shares issued and outstanding respectively | 1,628 | 1,575 |
Additional paid in capital | 540,416 | 536,263 |
Accumulated deficit | (529,443) | (525,866) |
Shareholders' equity | 12,601 | 11,972 |
Total liabilities and equity | $ 20,062 | $ 18,306 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 162,804,612 | 157,512,652 |
Common stock, shares outstanding | 162,804,612 | 157,512,652 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Sale of metals (Note 16) | $ 8,479,000 | $ 16,118,000 | ||
Oxide plant lease (Note 17) | $ 2,146,000 | $ 4,566,000 | ||
Total revenue | 8,479,000 | 2,146,000 | 16,118,000 | 4,566,000 |
Costs and expenses: | ||||
Cost of metals sold (exclusive of depreciation shown below) (Note 16) | (4,292,000) | (9,156,000) | ||
Oxide plant lease costs (Note 17) | (582,000) | (1,566,000) | ||
Exploration expense | (2,146,000) | (1,226,000) | (4,021,000) | (3,681,000) |
El Quevar project expense | (90,000) | (130,000) | (249,000) | (623,000) |
Velardea care and maintenance costs | (414,000) | (206,000) | (754,000) | (861,000) |
Administrative expense | (911,000) | (852,000) | (3,451,000) | (2,782,000) |
Stock based compensation | (75,000) | (105,000) | (1,491,000) | (771,000) |
Reclamation expense | (67,000) | (63,000) | (196,000) | (184,000) |
Other operating income (expense), net | 138,000 | 24,000 | 472,000 | (78,000) |
Depreciation and amortization | (143,000) | (226,000) | (466,000) | (770,000) |
Total costs and expenses | (8,000,000) | (3,366,000) | (19,312,000) | (11,316,000) |
Income (loss)from operations | 479,000 | (1,220,000) | (3,194,000) | (6,750,000) |
Other income (expense): | ||||
Interest and other expense, net (Note 18) | (13,000) | (12,000) | (336,000) | (85,000) |
Gain (loss) on foreign currency transactions | 133,000 | (36,000) | 156,000 | (92,000) |
Total other income (loss) | 120,000 | (48,000) | (180,000) | (177,000) |
Gain (loss) from operations before income taxes | 599,000 | (1,268,000) | (3,374,000) | (6,927,000) |
Income taxes (Note 14) | (188,000) | (18,000) | (203,000) | (18,000) |
Net Income (loss) | $ 411,000 | $ (1,286,000) | $ (3,577,000) | $ (6,945,000) |
Net income (los)s per common share - basic | ||||
Income (loss) | $ 0 | $ (0.01) | $ (0.02) | $ (0.06) |
Net income (loss) per common share - diluted | ||||
Income (loss) (in dollars per share) | $ 0 | $ (0.01) | $ (0.02) | $ (0.06) |
Weighted average Common Stock outstanding - basic | 162,477,039 | 143,285,564 | 161,751,452 | 124,956,140 |
Weighted average Common Stock outstanding - diluted (1)(in shares) | 174,549,498 | 143,285,564 | 161,751,452 | 124,956,140 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - shares | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Employee Stock Option | |||
Dilutive shares | 9,533,372 | 9,533,372 | 7,559,040 |
Warrant | |||
Dilutive shares | 2,539,087 | 14,303,846 | 17,403,846 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net cash used in operating activities (Note 19) | $ (2,093) | $ (7,891) |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 17 | 25 |
Acquisitions of property, plant and equipment | (1,542) | (101) |
Net cash used in investing activities | (1,525) | (76) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 2,714 | 12,032 |
Proceeds from related party loan (Note 22) | 1,000 | |
Payment of related party loan (Note 22) | (1,000) | |
Net cash from financing activities | 2,714 | 12,032 |
Net (decrease) increase in cash and cash equivalents | (904) | 4,065 |
Cash and cash equivalents, beginning of period | 9,704 | 4,593 |
Cash and cash equivalents, end of period | $ 8,800 | $ 8,658 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common StockSubscription Agreement | Common StockPrivate Placement | Common StockFirm Commitment Offering | Common Stock | Additional Paid-in CapitalSubscription Agreement | Additional Paid-in CapitalPrivate Placement | Additional Paid-in CapitalFirm Commitment Offering | Additional Paid-in Capital | Accumulated Deficit | LPC Program [Member] | Subscription Agreement | Private Placement | Firm Commitment Offering | Total |
Balance at Dec. 31, 2019 | $ 1,067 | $ 521,314 | $ (516,780) | $ 5,601 | ||||||||||
Balance (in shares) at Dec. 31, 2019 | 106,734,279 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Stock compensation accrued (Note 15) | 52 | 52 | ||||||||||||
Shares issued under the at-the-market offering agreement, net (Note 15) | $ 9 | 214 | 223 | |||||||||||
Shares issued under the at-the-market offering agreement, net (Note 15)(in shares) | 823,452 | |||||||||||||
Shares issued under the Lincoln Park commitment purchase agreement, net (Note 15) | $ 9 | 207 | 216 | |||||||||||
Shares issued under the Lincoln Park commitment purchase agreement, net (Note 15)(in shares) | 900,000 | |||||||||||||
Net loss | (3,336) | (3,336) | ||||||||||||
Balance at Mar. 31, 2020 | $ 1,085 | 521,787 | (520,116) | 2,756 | ||||||||||
Balance (in shares) at Mar. 31, 2020 | 108,457,731 | |||||||||||||
Balance at Dec. 31, 2019 | $ 1,067 | 521,314 | (516,780) | 5,601 | ||||||||||
Balance (in shares) at Dec. 31, 2019 | 106,734,279 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net loss | (6,945) | |||||||||||||
Balance at Sep. 30, 2020 | $ 1,490 | 533,694 | (523,725) | 11,459 | ||||||||||
Balance (in shares) at Sep. 30, 2020 | 149,012,652 | |||||||||||||
Balance at Mar. 31, 2020 | $ 1,085 | 521,787 | (520,116) | 2,756 | ||||||||||
Balance (in shares) at Mar. 31, 2020 | 108,457,731 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Stock compensation accrued (Note 15) | 614 | 614 | ||||||||||||
Stock Issued During Period Value New Issues | $ 47 | $ 150 | $ 882 | $ 2,561 | $ 929 | $ 2,711 | ||||||||
Stock Issued During period Shares New Issues | 4,719,207 | 15,000,000 | ||||||||||||
Net loss | (2,323) | (2,323) | ||||||||||||
Balance at Jun. 30, 2020 | $ 1,282 | 525,844 | (522,439) | 4,687 | ||||||||||
Balance (in shares) at Jun. 30, 2020 | 128,176,938 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Stock Issued During Period Value New Issues | $ 205 | $ 7,748 | $ 7,953 | |||||||||||
Stock Issued During period Shares New Issues | 20,535,714 | |||||||||||||
Stock compensation accrued and restricted stock awards granted (Note 15) | $ 3 | 102 | 105 | |||||||||||
Stock compensation accrued and restricted stock awards granted (Note 16)(in shares) | 300,000 | |||||||||||||
Net loss | (1,286) | (1,286) | ||||||||||||
Balance at Sep. 30, 2020 | $ 1,490 | 533,694 | (523,725) | 11,459 | ||||||||||
Balance (in shares) at Sep. 30, 2020 | 149,012,652 | |||||||||||||
Balance at Dec. 31, 2020 | $ 1,575 | 536,263 | (525,866) | 11,972 | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 157,512,652 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Stock compensation accrued (Note 15) | 429 | 429 | ||||||||||||
Shares issued under the at-the-market offering agreement, net (Note 15) | $ 19 | 1,681 | 1,700 | |||||||||||
Shares issued under the at-the-market offering agreement, net (Note 15)(in shares) | 1,856,960 | |||||||||||||
Warrants exercised (Note 15) | $ 31 | 984 | 1,015 | |||||||||||
Warrants exercised (Note 15) (in shares) | 3,100,000 | |||||||||||||
Net loss | (3,178) | (3,178) | ||||||||||||
Balance at Mar. 31, 2021 | $ 1,625 | 539,357 | (529,044) | 11,938 | ||||||||||
Balance (in shares) at Mar. 31, 2021 | 162,469,612 | |||||||||||||
Balance at Dec. 31, 2020 | $ 1,575 | 536,263 | (525,866) | 11,972 | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 157,512,652 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Stock Issued During period Shares New Issues | 900,000 | |||||||||||||
Net loss | (3,577) | |||||||||||||
Balance at Sep. 30, 2021 | $ 1,628 | 540,416 | (529,443) | 12,601 | ||||||||||
Balance (in shares) at Sep. 30, 2021 | 162,804,612 | |||||||||||||
Balance at Mar. 31, 2021 | $ 1,625 | 539,357 | (529,044) | 11,938 | ||||||||||
Balance (in shares) at Mar. 31, 2021 | 162,469,612 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Stock compensation accrued and restricted stock awards granted (Note 15) | $ 3 | 984 | 987 | |||||||||||
Stock compensation accrued and restricted stock awards granted (Note 16)(in shares) | 335,000 | |||||||||||||
Net loss | (810) | (810) | ||||||||||||
Balance at Jun. 30, 2021 | $ 1,628 | 540,341 | (529,854) | 12,115 | ||||||||||
Balance (in shares) at Jun. 30, 2021 | 162,804,612 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Stock compensation accrued (Note 15) | 75 | 75 | ||||||||||||
Net loss | 411 | 411 | ||||||||||||
Balance at Sep. 30, 2021 | $ 1,628 | $ 540,416 | $ (529,443) | $ 12,601 | ||||||||||
Balance (in shares) at Sep. 30, 2021 | 162,804,612 |
Basis of Preparation of Financi
Basis of Preparation of Financial Statements and Nature of Operations | 9 Months Ended |
Sep. 30, 2021 | |
Basis of Preparation of Financial Statements and Nature of Operations | |
Basis of Preparation of Financial Statements and Nature of Operations | 1. Basis of Preparation of Financial Statements and Nature of Operations Golden Minerals Company (the “Company”), a Delaware corporation, has prepared these unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). The interim condensed consolidated financial statements do not include all disclosures required by GAAP for annual financial statements, but in the opinion of management, include all adjustments necessary for a fair presentation. Certain prior period amounts may have been reclassified to conform to current classifications. Interim results are not necessarily indicative of results for a full year; accordingly, these interim financial statements should be read in conjunction with the annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and filed with the SEC on February 18, 2021. The Company is a mining company, holding a 100% interest in the Rodeo property in Durango State, Mexico (the “Rodeo Property”), a 100% interest in the Velardeña and Chicago precious metals mining properties and associated oxide and sulfide processing plants in the state of Durango, Mexico (the “Velardeña Properties”), a 100% interest in the El Quevar advanced exploration silver property in the province of Salta, Argentina, which is subject to the terms of the April 9, 2020 earn-in agreement (the “Earn-in Agreement”) pursuant to which Barrick Gold Corporation (“Barrick”) has the option to earn a 70% interest in the El Quevar project (see Note 7), and a diversified portfolio of precious metals and other mineral exploration properties located primarily in or near historical precious metals producing regions of Mexico, Argentina and Nevada. The Rodeo Property, Velardeña Properties and the El Quevar advanced exploration property are the Company’s only material properties. The Company is primarily focused on mining operations at the Rodeo Property as well as further studies of a restart plan for the Velardeña mine, including use of bio-oxidation to improve the payable gold recovery. The Company is also focused on (i) advancing our El Quevar exploration property in Argentina through the Earn-in Agreement with Barrick and (ii) continuing to evaluate and search for mining opportunities in North America (including Mexico) with near-term prospects of mining, and particularly for properties within reasonable haulage distances of our processing plants at the Velardeña Properties. The Company is also reviewing strategic opportunities, focusing primarily on development or operating properties in North America, including Mexico. The Company began mining activities at the Rodeo Property during December 2020 and began processing mined material from Rodeo at the Velardeña plant in January 2021. The employees at the Rodeo and Velardeña Properties, in addition to those that operate the plant that processes the Rodeo mined material, include an operations group, an administrative group and an exploration group to continue to advance the Company’s plans in Mexico and to provide oversight for corporate compliance activities as well as maintaining and safeguarding the longer-term value of the Velardeña Properties assets. The Company is considered an exploration stage company under SEC criteria since it has not yet demonstrated the existence of proven or probable mineral reserves, as defined by SEC Industry Guide 7, at any of its properties. Until such time, if ever, that the Company demonstrates the existence of proven or probable reserves pursuant to SEC Industry Guide 7, we expect to remain as an exploration stage company. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | 2. New Accounting Pronouncements In December 2019, the FASB issued No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The guidance removes certain exceptions to the general principles of ASC 740 and simplifies several other areas. ASU 2019-12 is effective for public business entities for annual reporting periods beginning after December 15, 2020, and interim periods within those reporting periods. The Company has adopted ASU 2019-12 beginning in 2021. One of the amendments within ASU 2019-12 eliminates a limitation on the amount of income tax benefit that can be recognized in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The Company has applied this guidance in the calculation of the tax benefit included in “ Income taxes Consolidated Statements of Operations. The adoption of this guidance did not result in a material impact on the Company’s consolidated financial position or results of operations. During the first quarter 2020, the Company adopted ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. The adoption of this update did not result in a material impact on the Company’s consolidated financial position or results of operations. On April 12, 2021, the SEC published a statement relating to accounting and reporting considerations for warrants issued by Special Purpose Acquisition Companies (SPACs). The SEC statement raised accounting and reporting considerations for all reporting entities that restrict the use of the exception under ASC 815-40-25-7 thru 8 that allows for equity treatment, under certain conditions, for warrants that allow cash settlement in certain change of control transactions. The restriction put forth by the SEC would prevent equity treatment in cases where cash is received disproportionately between shareholders and warrant holders in such transactions. All of the outstanding warrants granted by the Company are recorded in equity at September 30, 2021 and December 31, 2020 following the guidance established by ASC Topic 815-40. The Company’s warrants allow for the potential settlement in cash if certain extraordinary events are effected by the Company, including a 50% or greater change of control in the Company’s common stock. Since those events have been deemed to be within the Company’s control, the Company continues to apply equity treatment for these warrants. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Investments | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents and Short-Term Investments | |
Cash and Cash Equivalents and Short-Term Investments | 3. Cash and Cash Equivalents and Short-term Investments Of the $8.8 million reported as “Cash and cash equivalents” on the Condensed Consolidated Balance Sheets at September 30, 2021, the Company had approximately $153,000 that was unavailable for use due to a court order freezing the bank accounts of one of the Company’s subsidiaries in Mexico related to a lawsuit, as further described in Note 20. The restrictions imposed on the subsidiary’s bank accounts do not impact the Company’s ability to operate the Rodeo mine, which is held through a different Mexico subsidiary, or to continue with the Company’s evaluation plans for a potential Velardeña mine restart or move forward with any of the Company’s other exploration programs in Mexico. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Short-term investments include investments with maturities greater than three months, but not exceeding 12 months, or highly liquid investments with maturities greater than 12 months that the Company intends to liquidate during the next 12 months for working capital needs. The following tables summarize the Company's short-term investments at September 30, 2021 and December 31, 2020: Estimated Carrying September 30, 2021 Cost Fair Value Value (in Investments: Short-term: Trading securities $ 59 $ 102 $ 102 Total trading securities 59 102 102 Total short term $ 59 $ 102 $ 102 December 31, 2020 Investments: Short-term: Trading securities $ 59 $ 79 $ 79 Total trading securities 59 79 79 Total short term $ 59 $ 79 $ 79 an option agreement with the Company to acquire the Company’s option to earn a 100% interest in the Santa Maria mining claims located in Chihuahua, Mexico (see Note 7). The 1,000,000 common shares were issued to the Company as partial consideration per the terms of the option agreement. Credit Risk The Company invests substantially all of its excess cash with high credit-quality financial institutions or in U.S. government or debt securities. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. For cash and equivalents and investments, credit risk represents the carrying amount on the balance sheet. The Company mitigates credit risk for cash and equivalents and investments by placing its funds and investments with high credit-quality financial institutions, limiting the amount of exposure to each of the financial institutions, monitoring the financial condition of the financial institutions and investing only in government and corporate securities rated “investment grade” or better. The Company invests with financial institutions that maintain a net worth of not less than $1 billion and are members in good standing with the Securities Investor Protection Corporation. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 9 Months Ended |
Sep. 30, 2021 | |
Prepaid Expenses and Other Assets | |
Prepaid Expenses and Other Assets | 4. Prepaid Expenses and Other Assets Prepaid expenses and other current assets at September 30, 2021 and December 31, 2020 consist of the following: September 30, December 31, 2021 2020 (in thousands) Prepaid insurance $ 276 $ 571 Recoupable deposits and other 583 559 $ 859 $ 1,130 The September 30, 2021 recoupable deposits and other includes a receivable from Barrick for reimbursement of costs of approximately $0.2 million related to the Earn-in Agreement (see Note 7). |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2021 | |
Inventories, net | |
Inventories, net | 5. Inventories, net Inventories at the Rodeo operation at September 30, 2021 and December 31, 2020 consist of the following: September 30, December 31, 2021 2020 (in thousands) Doré inventory $ 927 $ 0 In-process inventory 475 0 Material and supplies $ 455 $ 284 $ 1,857 $ 284 Doré and in-process inventories, recorded at book value, include $25,000 of capitalized depreciation and amortization. Doré inventory at September 30, 2021 consists of 1,010 payable ounces of gold and 2,390 payable ounces of silver. The materials and supplies inventories at September 30, 2021 and December 31, 2020 are primarily related to the Rodeo operation and are reduced by a $0.3 million obsolescence reserve. |
Value added tax receivable, net
Value added tax receivable, net | 9 Months Ended |
Sep. 30, 2021 | |
Value added tax receivable, net | |
Value added tax receivable, net | 6. Value added tax receivable, net At September 30, 2021, the Company recorded a net value added tax (“VAT”) paid in Mexico of $1.1 million, related to the Velardeña Properties and the Rodeo operation, as a recoverable asset, which appears in “ Value added tax receivable, net” amounts will be recovered within a one-year period. At September 30, 2021, the Company recorded approximately $0.4 million of VAT payable as a reduction to the VAT receivable in Mexico. The Company has also paid VAT in Mexico as well as other countries, primarily related to exploration projects, which has been charged to expense as incurred because of the uncertainty of recoverability. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | 7. Property, Plant and Equipment, Net September 30, December 31, 2021 2020 (in thousands) Mineral properties $ 9,353 $ 9,353 Exploration properties 2,418 2,418 Royalty properties 200 200 Buildings 3,807 3,755 Mining equipment and machinery 17,409 16,135 Other furniture and equipment 1,319 890 Construction in progress — 259 Asset retirement cost 894 948 35,400 33,958 Less: Accumulated depreciation and amortization (28,879) (28,438) $ 6,521 $ 5,520 El Quevar Earn-In Agreement On April 9, 2020, the Company and several of its directly and indirectly wholly-owned subsidiaries entered into the Earn-in Agreement with Barrick, pursuant to which Barrick has acquired an option (the “Option”) to earn a 70% interest in the Company’s El Quevar project located in the Salta Province of Argentina. Pursuant to the terms of the Earn-in Agreement, in order to earn an undivided 70% interest in the El Quevar project, Barrick must: (A) incur a total of $10 million in work expenditures over a total of eight years ($0.5 million per year in years one and two four five six seven eight In connection with the Earn-in Agreement, the Company and Barrick also entered into a Subscription Agreement (the “Subscription Agreement”) dated as of April 9, 2020 pursuant to which Barrick purchased 4,719,207 shares of the Company’s common stock at a purchase price of $0.2119 per share in a private placement transaction (see Note 15). Sale of Santa Maria Property On July 14, 2020, the Company entered into a binding letter of intent (“Letter of Intent”) with Fabled for a potential transaction pursuant to which Fabled would acquire the Company’s option to earn a 100% interest in the Santa Maria mining claims located in Chihuahua, Mexico (the “Option”). On December 4, 2020, the Company entered into a definitive option agreement (“Option Agreement”) to sell its option to Fabled. The period to exercise the Option (the “Exercise Period”) expires on December 4, 2022, unless extended by the parties under the terms of the Option Agreement. As consideration for the Option, Fabled (i) paid $500,000 in cash to the Company and issued to the Company 1,000,000 shares of Fabled’s common stock (the “Closing Consideration”); (ii) will pay $1,500,000 in cash to the Company on the one year anniversary date following the closing of the Option Agreement; (iii) will pay $2,000,000 in cash to the Company on the two year anniversary date following the closing of the Option Agreement; and (iv) upon exercise of the Option, will grant the Company a 1% net smelter return royalty on the Maria, Martia III, Maria II Frac. I, Santa Maria and Punto Com concessions (the “Concessions”). Pursuant to the Option Agreement, during the Exercise Period, Fabled is obligated to pay to each of the owners of the Concessions any remaining required payments due to the owners pursuant to the various underlying option agreements between the owners and the Company, and to make all payments and perform all other requirements needed to maintain the Concessions in good standing. As of September 30, 2021, there was approximately $0.2 million of concession payments remaining to be paid by Fabled over the next approximately one year. Should Fabled not complete its obligations described above, the Santa Maria mining claims will revert to the Company and the Company will be entitled to keep any payments made by Fabled under the terms of the Option Agreement. The Company recorded the $0.5 million received from Fabled upon execution of the agreement to Deferred revenue |
Other Long-Term Assets
Other Long-Term Assets | 9 Months Ended |
Sep. 30, 2021 | |
Other Long-Term Assets | |
Other Long-Term Assets | 8. Other Long-Term Assets Other long-term assets at September 30, 2021 and December 31, 2020 consist of the following: September 30, December 31, 2021 2020 (in thousands) Deferred offering costs $ 70 $ 479 Right of use assets 750 993 $ 820 $ 1,472 The deferred offering costs at September 30, 2021 are associated with the ATM Agreement (see Note 15). The deferred offering costs at December 31, 2020 were associated with the ATM Agreement and the Commitment Purchase Agreement (see Note 15). The Commitment Purchase Agreement expired during June 2021, and as of September 30, 2021 the Company had written off the remaining balance of $353,000 of deferred LPC Program costs to “ Interest and Other Expense The right of use assets at September 30, 2021 include approximately $0.4 million related to certain office leases and $0.3 million related to a mining equipment lease at our Rodeo Property. The right of use assets at December 31, 2020 include approximately $0.5 million related to certain office leases and $0.5 million related to a mining equipment lease at our Rodeo Property. The Company took possession of new office space and began a new long-term lease for its principal headquarters office with an effective commencement date of June 1, 2019. The new office lease will expire five years and eight The Company also has long-term office leases in Mexico and Argentina that expired in 2019 and recorded a combined lease liability of approximately $45,000 and combined right of use asset of approximately $45,000 relating to both of those leases at January 1, 2019. In November 2019, the Company renewed its Mexican office lease for four years and recorded a right of use asset and lease liability lease liability Company recorded a right of use asset and a lease liability The lease liabilities noted above have been included in “ Other liabilities |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Accounts Payable and Other Accrued Liabilities | |
Accounts Payable and Other Accrued Liabilities | 9. Accounts Payable and Other Accrued Liabilities The Company’s accounts payable and other accrued liabilities consist of the following: September 30, December 31, 2021 2020 (in thousands) Accounts payable and accruals $ 1,907 $ 472 Accrued employee compensation and benefits 1,236 846 Income taxes payable 203 — $ 3,346 $ 1,318 September 30, 2021 Accounts payable and accruals at September 30, 2021 are primarily related to amounts due to contractors and suppliers, denominated in US dollars, in the amounts of $1.4 million related to the Company’s Velardeña Properties and Rodeo operation and $0.5 million related to exploration and corporate administrative activities. Accrued employee compensation and benefits at September 30, 2021 consist of $0.4 million of accrued vacation payable and $0.8 million related to withholding taxes and benefits payable. Included in the $1.2 million of accrued employee compensation and benefits is $1.0 million related to activities at the Velardeña Properties and Rodeo operation. December 31, 2020 |
Debt - Related Party
Debt - Related Party | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt - Related Party | 10 . Debt – Related Party On March 30, 2020, in response to potential economic and market uncertainties caused by the COVID-19 pandemic, the Company entered into a Short-Term Loan Agreement (the “Loan Agreement”) with Sentient Global Resources Fund IV , L.P., a Cayman Islands exempted limited partnership (“Sentient”), pursuant to which Sentient granted to the Company an unsecured loan in an amount equal to $1,000,000 (the “Sentient Loan”). Sentient is a private equity fund, and together with certain other Sentient equity funds, Sentient is the Company’s largest stockholder, holding in the aggregate approximately 32% of the Company’s outstanding common stock at the date of the Loan Agreement. The Sentient Loan had an interest rate of 10% per annum and was due in full, together with accrued interest and any other amount outstanding under the Loan Agreement, on December 31, 2020. On August 12, 2020 the Company repaid the Sentient Loan in full in the amount of approximately $1,037,159 (including all accrued interest), with no prepayment penalty, and terminated the Loan Agreement. No amounts were due under this loan at September 30, 2021 and December 31, 2020. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities | |
Other Liabilities | 11. Other Liabilities Other Current Liabilities September 30, December 31, 2021 2020 (in thousands) Premium financing $ — $ 390 Office lease liability 146 138 Mining equipment lease liability 179 139 $ 325 $ 667 The premium financing at December 31, 2020 consists of the remaining balance, plus accrued interest, related to premiums payable for the Company’s directors and officers insurance of $367,000 and general liability insurance of $23,000. In June 2020, the Company financed $110,000 of its premium for general liability insurance. The premium was payable in twelve equal payments at an interest rate of 5.74% per annum. At December 31, 2020, the remaining balance, plus accrued interest, was approximately $23,000. In December 2020 the Company financed approximately $406,000 of its premium for directors and officers’ insurance. The premium is payable in eight equal payments at an interest rate of 5.74% per annum. At September 30, 2021, the remaining balance for both policies, plus accrued interest, had been paid in full. The office lease liability is related to lease liabilities for office space at the Company’s principal headquarters in Golden, Colorado and in Mexico and Argentina. The mining equipment lease liability is related to equipment used by the contract miner at our Rodeo property (see Note 8). Other Long-Term Liabilities Other long-term liabilities of $0.4 million for the period ended September 30, 2021, consist of approximately $0.1 million related to the mining equipment lease liability at our Rodeo Property and $0.3 million related to lease liabilities for office space at the Company’s principal headquarters in Golden Colorado and in Mexico and Argentina (see Note 8). Other long-term liabilities of $0.6 million for the period ended December 31, 2020, consist of $0.3 million related to a mining equipment lease liability at our Rodeo Property and $0.3 million related to lease liabilities for office space at the Company’s principal headquarters in Golden Colorado and in Mexico and Argentina (see Note 8). |
Asset Retirement Obligation and
Asset Retirement Obligation and Reclamation Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation and Reclamation Liabilities | |
Asset Retirement and Reclamation Liabilities | 12. Asset Retirement Obligation and Reclamation Liabilities The Company retained the services of a mining engineering firm to prepare a detailed closure plan for the Velardeña Properties. The plan was completed during the second quarter 2012 and indicated that the Company had an ARO and offsetting ARC of approximately $1.9 million at that time. The Company will continue to accrue additional estimated ARO amounts based on an asset retirement plan as activities requiring future reclamation and remediation occur. During the first nine months of 2021, the Company recognized approximately $196,000 of accretion expense. The following table summarizes activity in the Velardeña Properties ARO: Nine Months Ended September 30, 2021 2020 (in thousands) Beginning balance $ 3,156 $ 2,825 Changes in estimates, and other (86) 82 Accretion expense 196 184 Ending balance $ 3,266 $ 3,091 The change in estimates of the ARO recorded during 2021 and 2020 are primarily the result of changes in assumptions related to inflation factors used in the determination of future cash flows. The asset retirement obligation and reclamation liability set forth on the accompanying Condensed Consolidated Balance Sheets at September 30, 2021 and December 31, 2020 also includes a nominal amount of reclamation liability related to activities at the El Quevar project in Argentina. Environmental costs at the Rodeo Property will be expensed as incurred. There were no environmental costs incurred at the Rodeo Property for the nine-month periods ended September 30, 2021 or September 30, 2020. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | 13. Fair Value Measurements Financial assets and liabilities and nonfinancial assets and liabilities are measured at fair value under a framework of a fair value hierarchy which prioritizes the inputs into valuation techniques used to measure fair value into three broad levels. This hierarchy gives the highest priority to quoted prices (unadjusted) in active markets and the lowest priority to unobservable inputs. Further, financial assets and liabilities should be classified by level in their entirety based upon the lowest level of input that was significant to the fair value measurement. The three levels of the fair value hierarchy per ASC 820 are as follows: Level 1 Level 2 Level 3 The following table summarizes the Company’s financial assets and liabilities at fair value on a recurring basis at September 30, 2021 and December 31, 2020, by respective level of the fair value hierarchy: Level 1 Level 2 Level 3 Total (in thousands) At September 30, 2021 Assets: Cash and cash equivalents $ 8,800 $ — $ — $ 8,800 Short-term investments 102 — — 102 $ 8,902 $ — $ — $ 8,902 At December 31, 2020 Assets: Cash and cash equivalents $ 9,704 $ — $ — $ 9,704 Short-term investments 79 — — 79 $ 9,783 $ — $ — $ 9,783 The Company’s short-term investments consist of the common stock in Fabled and are classified within Level 1 of the fair value hierarchy (see Note 3). At September 30, 2021 and December 31, 2020, the Company did not have any financial assets or liabilities classified within Level 2 or Level 3 of the fair value hierarchy. Non-recurring Fair Value Measurements There were no non-recurring fair value measurements at September 30, 2021 or December 31, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Income Taxes | 14. Income Taxes The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. In accordance with ASC 740, the interim provision for taxes was calculated by using the estimated annual effective tax rate applied to the year-to-date income or losses on a jurisdictional basis. Although the Company has generated ordinary losses on a year-to-date basis, the Company has projected taxable income by year end in certain tax jurisdictions, for which an annual effective tax rate has been calculated. For the nine months ended September 30, 2021, the Company recognized $203,000 of income tax expense, of which $162,000 represented a current tax expense and $41,000 was a deferred tax expense. Of the total amount for the nine months ended September 30, 2020 the Company recognized $18,000 of income tax expense, all of which was a current tax expense. In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its Condensed Consolidated Balance Sheets. As of September 30, 2021, the Company had no net deferred tax assets or net deferred tax liabilities on the Condensed Consolidated Balance Sheets, and as of December 31, 2020, the Company had no net deferred tax assets or net deferred tax liabilities reported on its balance sheet. The Company, a Delaware corporation, and its subsidiaries file tax returns in the United States and in various foreign jurisdictions. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s income tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is less than a more-likely-than-not probability of the position being upheld upon review by the relevant taxing authority. Such positions are deemed to be “unrecognized tax benefits” which require additional disclosure and recognition of a liability within the financial statements. The Company had no unrecognized tax benefits at September 30, 2021 or December 31, 2020. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity | |
Equity | 15. Equity Public offering On July 21, 2020, the Company entered into an Amended and Restated Underwriting Agreement (the “Underwriting Agreement”) with H.C. Wainwright & Co., LLC as representative of the underwriters named therein (the “Underwriters”), providing for the issuance and sale by the Company in a firm commitment offering (the “Offering”) of 17,857,143 shares of common stock at a price to the public of $0.42 per share (the “Offering Shares”). In addition, the Company granted the Underwriters an option to purchase, at the public offering price per share of common stock, up to an additional 2,678,571 shares of common stock, exercisable for 30 days from the date of the Underwriting Agreement (the “Option Shares”). The Offering Shares and Option Shares were registered pursuant to the Company’s registration statement on Form S-3 (File No. 333-220461), and a prospectus supplement thereto filed with the Securities and Exchange Commission. On July 24, 2020, the Underwriters acquired the Offering Shares and the full amount of the Option Shares from the Company. After the underwriting discount of 6% and total offering expenses of approximately $155,000 the Company received net proceeds of approximately $8.0 million from the sale of the Offering Shares and the Option Shares. Subscription agreement In connection with the Earn-in Agreement (see Note 7), the Company and Barrick entered into the Subscription Agreement dated as of April 9, 2020 pursuant to which Barrick purchased 4,719,207 shares of the Company’s common stock at a purchase price of $0.2119 per share in a private placement transaction. The shares were offered and sold without registration under the Securities Act of 1933, as amended (the “Act”) in reliance on the exemptions provided by Section 4(a)(2) of the Act and/or Regulation D promulgated thereunder. The net proceeds of the Subscription Agreement of approximately $0.9 million were recorded in equity. Offering and private placement On April 20, 2020, the Company entered into a securities purchase agreement with certain institutional investors providing for the issuance and sale of 15,000,000 shares of the Company’s common stock at a price of $0.20 per share, and in a concurrent private placement transaction, the issuance of an aggregate of 11,250,000 warrants, ultimately consisting of 7,500,000 series A warrants and 3,750,000 series B warrants (collectively, the “Warrants”), to purchase up to 11,250,000 shares of our common stock at an exercise price of $0.30 per share, for aggregate gross proceeds of $3.0 million (the “Offering”). Each Warrant is exercisable six months from the date of issuance on April 22, 2020 and has a term expiring five years after such initial exercise date. The Warrants contain so-called full-ratchet anti-dilution provisions which may be triggered upon any future issuance by the Company of shares of its common stock or common stock equivalents at a per share price below the then-exercise price of the Warrant, subject to certain exceptions; provided, however, that with respect to the Series B warrants, the adjusted exercise price will not be less than $0.26. The net proceeds of the Offering were recorded in equity. Total costs for the Offering were approximately $334,000, including listing fees, legal and other costs, and the placement agent fee of six percent of aggregate gross proceeds; however, a reduced fee was accepted with respect to one investor. All such costs were recorded as a reduction to “ Additional paid in capital” Commitment purchase agreement On May 9, 2018, the Company entered into a commitment purchase agreement (the “Commitment Purchase Agreement”) with LPC, pursuant to which the Company, at its sole discretion, had the right to sell up to $10.0 million of the Company’s common stock to LPC, subject to certain limitations and conditions contained in the Commitment Purchase Agreement (the “LPC Program”). The Company closed on the Commitment Purchase Agreement in July 2018. Under the terms of the agreement, the LPC Program expired as of June 30, 2021. During the nine months ended September 30, 2021, the Company did not sell any shares of common stock to LPC under the Commitment Purchase Agreement. In anticipation of the June 2021 expiration of the agreement, the Company wrote off the remaining balance of $353,000 of deferred LPC Program costs to “ Interest and Other Expense During the nine months ended September 30, 2020, the Company sold 900,000 shares of common stock to LPC under the Commitment Purchase Agreement at an average sales price per share of approximately $0.27, resulting in net proceeds of approximately $216,000. In addition, approximately $24,000 of Commitment Purchase Agreement costs were amortized, resulting in a remaining balance of $353,000 of deferred LPC Program costs, recorded in “ Other long-term assets At the Market Offering Agreement In December 2016, the Company entered into an at-the-market offering agreement (as amended from time to time, the “ATM Agreement”) with H. C. Wainwright & Co., LLC (“Wainwright”), under which the Company may, from time to time, issue and sell shares of the Company’s common stock through Wainwright as sales manager in an at-the-market offering under a prospectus supplement for aggregate sales proceeds of up to $5.0 million (the “ATM Program”) or a maximum of 10 million shares. On November 23, 2018, the Company entered into a second amendment of the ATM Agreement, extending the agreement until the earlier of December 20, 2020, or the date that the ATM Agreement is terminated in accordance with the terms therein. On December 11, 2020 the Company entered into a third amendment of the ATM Agreement further extending the agreement so that it will remain in full force and effect until such time as the ATM Agreement is terminated in accordance with certain other terms therein or upon mutual agreement by the parties, and to reflect a new registration statement on Form S-3 (No. 333-249218). The common stock will be distributed at the market prices prevailing at the time of sale. As a result, prices of the common stock sold under the ATM Program may vary as between purchasers and during the period of distribution. The ATM Agreement provides that Wainwright will be entitled to compensation for its services at a commission rate of 2.0% of the gross sales price per share of common stock sold. During the first three months of 2021, the Company sold an aggregate of 1,856,960 shares of common stock under the ATM Program at an average price of $0.97 per share of common stock for net proceeds of approximately $1.8 million. Also, during the first three months of 2021, approximately $57,000 of deferred ATM Program costs were amortized. The Company has not sold any shares of common stock under the ATM after March 31, 2021. At September 30, 2021 there was a remaining balance of $71,000 of deferred ATM Program costs, recorded in “ Prepaid expenses and other assets During the first nine months of 2020, the Company sold an aggregate of 823,452 shares of common stock under the ATM Agreement at an average price of $0.28 per share of common stock for net proceeds of approximately $223,000. In addition, approximately $8,000 of deferred ATM Program costs were amortized, resulting in a remaining balance of $129,000 of deferred ATM Program costs, recorded in “ Prepaid expenses and other assets There is currently approximately $2.2 million remaining available for issuance under the ATM Program based on a prospectus supplement filed with SEC on December 11, 2020. Equity Incentive Plans Under the Company’s Amended and Restated 2009 Equity Incentive Plan (the “Equity Plan”), awards of the Company’s common stock may be made to officers, directors, employees, consultants and agents of the Company and its subsidiaries. The Company recognizes stock-based compensation costs using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award. The following table summarizes the status of the Company’s restricted stock grants issued under the Equity Plan at September 30, 2021 and the changes during the nine months then ended: Weighted Average Grant Date Fair Number of Value Per Restricted Stock Grants Shares Share Outstanding at December 31, 2020 224,002 $ 0.36 Granted during the period 335,000 0.67 Restrictions lifted during the period (265,668) 0.47 Forfeited during the period — — Outstanding September 30, 2021 293,334 $ 0.61 For the nine months ended September 30, 2021, the Company recognized approximately $139,000 of stock compensation expense related to the restricted stock grants. The Company expects to recognize additional stock compensation expense related to these awards of approximately $98,000 over the next 21 months. During the nine months ended September 30, 2021, 335,000 shares were granted to nine employees, with one-third of the grants vesting on the grant date and the remaining shares vesting equally on the first and second anniversaries of the grant date. Also during the period, restrictions were lifted on the normal vesting of 154,002 shares granted to six employees in prior years. Also, pursuant to the Equity Plan, the Company’s Board of Directors adopted the Non-Employee Director’s Deferred Compensation and Equity Award Plan (the “Deferred Compensation Plan”). Pursuant to the Deferred Compensation Plan, non-employee directors receive a portion of their compensation in the form of Restricted Stock Units (“RSUs”) issued under the Equity Plan. The RSUs generally vest on the first anniversary of the grant and each vested RSU entitles the director to receive one unrestricted share of common stock upon termination of the director’s board service. The following table summarizes the status of the RSU grants issued to Directors of the Company under the Deferred Compensation Plan at September 30, 2021 and the changes during the nine months then ended: Weighted Average Grant Date Fair Number of Value Per Restricted Stock Units Shares Share Outstanding at December 31, 2020 3,610,038 $ 0.70 Granted during the period 300,000 0.67 Restrictions lifted during the period — — Forfeited during the period — — Outstanding September 30, 2021 3,910,038 $ 0.70 For the nine months ended September 30, 2021, the Company recognized approximately $162,000 of stock compensation expense related to the RSU grants. The Company expects to recognize additional stock compensation expense related to the RSU grants of approximately $127,000 over the next 9 months. During the nine months ended September 30, 2021, 50,000 RSUs were granted to each of the six board members for a total of 300,000 RSUs. During the nine months ended September 30, 2021, the Company granted a consultant 100,000 RSUs and recognized $67,000 of stock compensation expense. The RSUs vested on the grant date and each vested RSU entitles the consultant to receive one unrestricted share of common stock upon termination of the consulting agreement with the Company. Key Employee Long-Term Incentive Plan The Company’s 2013 Key Employee Long-Term Incentive Plan (the “KELTIP”) provides for the grant of units (“KELTIP Units”) to certain officers and key employees of the Company, which units will, once vested, entitle such officers and employees to receive an amount, in cash or in Company common stock (such method of settlement at the sole discretion of the Board of Directors) issued pursuant to the Company’s Equity Plan, measured generally by the price of the Company’s common stock on the settlement date. KELTIP Units are not an actual equity interest in the Company and are solely unfunded and unsecured obligations of the Company that are not transferable and do not provide the holder with any stockholder rights. Payment of the settlement amount of vested KELTIP Units is deferred generally until the earlier of a change of control of the Company or the date the grantee ceases to serve as an officer or employee of the Company. The Company intends to settle all the KELTIP Units in common stock of the Company, an option that the Board of Directors holds in its sole discretion so long as sufficient shares remain available under the Equity Plan. As a result, all outstanding KELTIP Units are recorded in equity at September 30, 2021 and December 31, 2020. During the nine-month period ended September 30, 2021, the Company granted 1,605,000 KELTIP Units to two officers of the Company and recognized approximately $1.0 million of stock compensation expense related to the grants. During the nine-month period ended September 30, 2020, the Company granted 1,400,000 KELTIP Units to two officers of the Company and recognized approximately $0.5 million of stock compensation expense related to the grants. There were 5,330,000 and 3,725,000 KELTIP Units outstanding at September 30, 2021 and December 31, 2020, respectively. Common stock warrants The following table summarizes the status of the Company’s common stock warrants at December 31, 2020 and September 30, 2021, and the changes during the twelve and nine months then ended, respectively: Weighted Number of Average Exercise Underlying Price Per Common Stock Warrants Shares Share Outstanding at December 31, 2019 14,653,846 $ 0.39 Granted during the period: April 2020 Series A warrants 7,500,000 0.30 April 2020 Series B warrants 3,750,000 0.30 Exercised during period April 2020 Series A warrants (5,000,000) 0.30 April 2020 Series B warrants (3,500,000) 0.30 Outstanding at December 31, 2020 17,403,846 0.38 Exercised during period July 2019 Series A warrants (200,000) 0.35 July 2019 Series B warrants (1,500,000) 0.35 April 2020 Series A warrants (1,400,000) 0.30 Outstanding September 30, 2021 14,303,846 $ 0.39 The warrants relate to prior registered offerings and private placements of the Company’s stock. As discussed above under “Equity – Offering and private placement”, on April 20, 2020, the Company entered into a securities purchase agreement with certain institutional investors providing for the issuance and sale of 15,000,000 shares of the Company’s common stock and in a concurrent private placement transaction, the issuance of an aggregate of 11,250,000 warrants, ultimately consisting of 7,500,000 series A warrants and 3,750,000 series B warrants. During the year ended December 31, 2020, and the nine months ended September 30, 2021, 6,400,000 series A warrants and 3,500,000 series B warrants were exercised leaving a balance of 1,100,000 and 250,000 series A and series B warrants outstanding, respectively as of September 30, 2021. On July 17, 2019, the Company issued 8,653,846 registered shares of common stock in a registered direct offering. In connection with the offering, each investor received an unregistered Series A warrant to purchase a share of common stock for each share of common stock purchased. Each Series A warrant is exercisable six months from the date of issuance and has a term expiring in January 2025. During the nine months ended September 30, 2021, 200,000 series A warrants were exercised, leaving a balance of 8,453,846 series A warrants outstanding. In May 2016, the Company issued 8.0 million registered shares of common stock at a purchase price of $0.50 per share in a registered direct offering resulting in gross proceeds of $4.0 million. In connection with the offering, each investor received an unregistered warrant to purchase three-quarters of a share of common stock for each share of common stock purchased. The resulting 6,000,000 warrant shares have an exercise price of $0.75 per share, became exercisable on November 7, 2016 and were exercisable until November 6, 2021, five years from the initial exercise date. In connection with a July 2019 registered direct offering, the Company agreed to exchange, on a one-for-one basis, 4,500,000 of the May 2016 warrants for Series B warrants to purchase 4,500,000 shares of common stock at an exercise price of $0.35 per share. Each Series B warrant is exercisable six months from the date of issuance and has a term expiring in May 2022. During the nine months ended September 30, 2021, 1,500,000 series B warrants were exercised leaving a balance of 3,000,000 series B warrants and 1,500,000 of the original July 2016 warrants outstanding, respectively. All outstanding warrants are recorded in equity at September 30, 2021 and December 31, 2020 following the guidance established by ASC Topic 815-40. The Company’s warrants allow for the potential settlement in cash if certain extraordinary events are effected by the Company, including a 50% or greater change of control in the Company’s common stock. Since those events have been deemed to be within the Company’s control, the Company continues to apply equity treatment for these warrants. |
Sale of Metals and Related Cost
Sale of Metals and Related Costs | 9 Months Ended |
Sep. 30, 2021 | |
Sale of Metals and Related Costs | |
Sale of Metals and Related Costs | 16. Sale of Metals and Related Costs During the nine months ended September 30, 2021, the Company sold gold and silver contained in doré bars related to the Rodeo operation and recorded revenue of approximately $16.1 million and related costs of approximately $9.2 million. The gold and silver contained in the doré bars were sold to one customer, a metals refinery located in the United States. Under the terms of the Company’s agreement with its customer, title passes and revenue is recognized by the Company when the contractual performance obligations of the parties are completed, generally at the time a provisional or final payment is made. A provisional payment for approximately 95% of the contained gold and silver is made generally within 10-12 days after the product is shipped and customary sales documents are completed. A final payment is made within approximately 30 days following the date of shipment when final assays and refinery charges are agreed upon by the parties. A price for the gold and silver sold is set, based on current market prices, at the time a provisional or final payment is made. Refining and transport costs, deducted from the final payments made, are treated as third party agent costs incurred by the Company in performing its obligations under the agreement with its customer after the transfer of control on provisional sales, and are therefore netted against revenue on an accrual basis. Costs related to the sale of metals products include direct and indirect costs incurred to mine, process and market the products. During the nine months ended September 30, 2020 the Company did not sell any doré products or incur any related costs |
Oxide Plant Lease Revenue and R
Oxide Plant Lease Revenue and Related Costs | 9 Months Ended |
Sep. 30, 2021 | |
Oxide Plant Lease Revenue and Related Costs | |
Oxide Plant Lease Revenue and Related Costs | 17. Oxide Plant Lease Revenue and Related Costs For the nine months ended September 30, 2020, the Company recorded revenue of approximately $4.6 million and related costs of approximately $1.6 million associated with the lease of the Velardeña Properties oxide plant. The Company recognizes oxide plant lease fees and reimbursements for labor, utility and other costs as “ Revenue: Oxide plant lease Oxide plant lease costs On July 7, 2020, the Company received notification from Hecla terminating the Lease Agreement pursuant to the Third Amendment, effective November 30, 2020. Therefore, during the nine months ended September 30, 2021 the Company did not record any income or costs associated with the lease of the oxide plant to Hecla. |
Interest and Other Expense, Net
Interest and Other Expense, Net | 9 Months Ended |
Sep. 30, 2021 | |
Interest and Other Expense, Net | |
Interest and Other Expense, Net | 18. Interest and Other Expense, Net For the nine months ended September 30, 2021, the Company recognized approximately $0.3 million of Interest and Other Expense For the nine months ended September 30, 2020 the Company recognized approximately $0.1 million Interest and Other Expense |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 19. Supplemental Cash Flow Information The following table reconciles net loss for the period to cash used in operations: Nine Months Ended September 30, 2021 2020 (in thousands) Cash flows from operating activities: Net loss $ (3,577) $ (6,945) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 466 770 Accretion of asset retirement obligation 196 184 Decrease in derivative at fair value, net — 3 Gain on trading securities (24) — Write off of deferred financing costs 352 — Asset write off — 100 Gain on sale of assets (17) (25) Stock compensation 1,491 771 Changes in operating assets and liabilities from continuing operations: Increase in lease receivable — (54) Decrease in prepaid expenses and other assets 343 30 (Increase) decrease in inventories (1,552) 33 Increase in value added tax recoverable, net (1,058) — Decrease in other long-term assets 301 143 Decrease in reclamation liability (33) (3) Increase (decrease) in accounts payable and accrued liabilities 2,029 (823) Decrease in other current liabilities (343) (1,594) Decrease in deferred revenue (404) (372) Decrease in other long-term liabilities (263) (109) Net cash used in operating activities $ (2,093) $ (7,891) The following table sets forth supplemental cash flow information and non-cash transactions: Nine Months Ended September 30, 2021 2020 (in thousands) Supplemental disclosure: Interest paid $ 7 $ 95 Income taxes paid $ — $ 284 Supplemental disclosure of non-cash transactions: Deferred equity offering costs amortized $ 57 $ 32 Deferred equity offering costs written off $ 352 $ — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 20. Commitments and Contingencies During April 2021, the Company became aware of a lawsuit in Mexico against one of the Company’s Mexican subsidiaries, Minera William, S.A. de C.V. (“Minera William”). The plaintiff in the matter is Unifin Financiera, S.A.B de C.V. (“Unifin”). The lawsuit was assigned to the Fifth Specialized Commercial District Court. Although the Company has knowledge of the existence and content of the lawsuit filed by Unifin, the Court has not officially served Minera William with the complaint as of the date of this report. Unifin is alleging that a representative of Minera William signed certain documents in July 2011 purporting to bind Minera William as a guarantor of payment obligations owed by a third party to Unifin in connection with that third party’s acquisition of certain drilling equipment. At the time the documentation was allegedly signed, Minera Williams was a subsidiary of ECU Silver Mining prior to the Company’s acquisition of ECU in September 2011. As a preemptive measure, Unifin has obtained a preliminary court order freezing Minera William’s bank accounts in Mexico, which has limited the Company’s and Minera William’s ability to access approximately US$153,000 according to current currency exchange rates. Notwithstanding this action, the restrictions imposed on Minera Williams’ bank accounts do not impact the Company’s ability to operate the Rodeo mine, which is held through a different Mexico subsidiary, or continue with the Company’s evaluation plans for a potential Velardeña mine restart or move forward with any of the Company’s other exploration programs in Mexico. Unifin is seeking recovery for as much as US$12.5 million. The Company believes there is no basis for this claim and will defend itself if and when the Company is formally served with notice of the lawsuit. As such, the Company has not accrued an amount for this matter in its Condensed Consolidated Balance Sheets or Statements of Operations as of September 30, 2021. On April 23, 2021, a new labor law was made official in Mexico that will impact companies that utilize subcontractor structures, effective beginning August 1, 2021. The Company utilizes subcontractor structures in Mexico, as is common practice among companies in the mining and other industries in Mexico. The law will disallow a deduction in computing income taxes for labor outsourcing costs, unless the arrangement falls within certain narrowly defined exceptions. The new law does provide for annual caps on the amount of employee profit sharing a company would be required to pay, which is designed to even out the profit sharing liability over several years. As of September 30, 2021, the Company has reorganized the functions performed by its various Mexican subsidiaries to comply with the new law. The Company estimates its profit sharing liability in Mexico will increase for the full year 2021 as a result of the new law taking effect and the completion of the Company’s reorganization process and has accrued approximately $136,000 for such amount, included in “Accounts payable and other accrued liabilities At December 31, 2020, the Company had no gain |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Information | |
Segment Information | 21. Segment Information The Company’s sole activity is the mining, construction and exploration of mineral properties containing precious metals. The Company’s reportable segments are based upon the Company’s revenue producing activities and cash consuming activities. The Company reports two segments, one for its revenue producing activities in Mexico, which includes both the Velardeña Properties and the Rodeo Property, and the other comprised of non-revenue producing activities, including exploration, construction and general and administrative activities. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The financial information relating to the Company’s segments is as follows: Exploration, El Costs Depreciation, Quevar, Velardeña Three Months Ended Applicable Depletion and and Administrative Pre-Tax (gain) Capital September 30, 2021 Revenue to Sales Amortization Expense loss Total Assets Expenditures Mexico Operations $ 8,479 $ 4,292 $ 125 $ (596) $ (3,007) $ 168 Corporate, Exploration and Other — — 18 4,158 2,408 3 $ 8,479 $ 4,292 $ 143 $ 3,562 $ (599) $ 171 Nine Months Ended September 30, 2021 Mexico Operations $ 16,118 $ 9,156 $ 343 $ 753 $ (4,199) $ 8,727 $ 1,479 Corporate, Exploration and Other — — 123 7,724 7,573 11,335 63 $ 16,118 $ 9,156 $ 466 $ 8,477 $ 3,374 $ 20,062 $ 1,542 Three Months Ended September 30, 2020 Mexico Operations $ 2,146 $ 582 $ 162 $ 358 $ (959) $ 65 Corporate, Exploration and Other — — 64 2,056 2,227 35 $ 2,146 $ 582 $ 226 $ 2,414 $ 1,268 $ 100 Nine Months Ended September 30, 2020 Mexico Operations $ 4,566 $ 1,566 $ 562 $ 1,339 $ (820) $ 4,912 $ 66 Corporate, Exploration and Other — — 208 6,608 7,747 11,668 35 $ 4,566 $ 1,566 $ 770 $ 7,947 $ 6,927 $ 16,580 $ 101 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions | |
Related Party Transactions | 22. Related Party Transactions The following sets forth information regarding transactions between the Company (and its subsidiaries) and its officers, directors and significant stockholders. Administrative Services, Lease of Equipment: Beginning in August 2016, the Company began providing limited accounting and other administrative services to Minera Indé, an indirect subsidiary of Sentient. At September 30, 2021, Sentient, through the Sentient executive funds, holds approximately 23% of the Company’s 162.5 million shares of issued and outstanding Exploration expense Debt – Related Party On March 30, 2020, the Company entered into a short-term loan agreement with Sentient whereby the Company received an unsecured loan in the amount of $1,000,000. The Sentient Loan had an interest rate of 10% per annum and was due in full, together with accrued interest and any other amount outstanding under the loan agreement, on December 31, 2020. During August 2020, the Company paid in full the principal amount of the loan plus accrued interest. See Note 10 for a full description of the loan. |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents and Short-Term Investments | |
Schedule of short term-investments | Estimated Carrying September 30, 2021 Cost Fair Value Value (in Investments: Short-term: Trading securities $ 59 $ 102 $ 102 Total trading securities 59 102 102 Total short term $ 59 $ 102 $ 102 December 31, 2020 Investments: Short-term: Trading securities $ 59 $ 79 $ 79 Total trading securities 59 79 79 Total short term $ 59 $ 79 $ 79 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Prepaid Expenses and Other Assets | |
Schedule of prepaid expenses and other current assets | September 30, December 31, 2021 2020 (in thousands) Prepaid insurance $ 276 $ 571 Recoupable deposits and other 583 559 $ 859 $ 1,130 |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventories, net | |
Schedule of inventories at the Rodeo operation | September 30, December 31, 2021 2020 (in thousands) Doré inventory $ 927 $ 0 In-process inventory 475 0 Material and supplies $ 455 $ 284 $ 1,857 $ 284 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment, Net | |
Schedule of components of property, plant and equipment | September 30, December 31, 2021 2020 (in thousands) Mineral properties $ 9,353 $ 9,353 Exploration properties 2,418 2,418 Royalty properties 200 200 Buildings 3,807 3,755 Mining equipment and machinery 17,409 16,135 Other furniture and equipment 1,319 890 Construction in progress — 259 Asset retirement cost 894 948 35,400 33,958 Less: Accumulated depreciation and amortization (28,879) (28,438) $ 6,521 $ 5,520 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Long-Term Assets | |
Schedule of Other long-term assets | September 30, December 31, 2021 2020 (in thousands) Deferred offering costs $ 70 $ 479 Right of use assets 750 993 $ 820 $ 1,472 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounts Payable and Other Accrued Liabilities | |
Schedule of accounts payable and other accrued liabilities | September 30, December 31, 2021 2020 (in thousands) Accounts payable and accruals $ 1,907 $ 472 Accrued employee compensation and benefits 1,236 846 Income taxes payable 203 — $ 3,346 $ 1,318 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities, Current | |
Schedule of other current liabilities | September 30, December 31, 2021 2020 (in thousands) Premium financing $ — $ 390 Office lease liability 146 138 Mining equipment lease liability 179 139 $ 325 $ 667 |
Asset Retirement Obligation a_2
Asset Retirement Obligation and Reclamation Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation and Reclamation Liabilities | |
Summary of activity in the Velardena Properties ARO | Nine Months Ended September 30, 2021 2020 (in thousands) Beginning balance $ 3,156 $ 2,825 Changes in estimates, and other (86) 82 Accretion expense 196 184 Ending balance $ 3,266 $ 3,091 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities at fair value | Level 1 Level 2 Level 3 Total (in thousands) At September 30, 2021 Assets: Cash and cash equivalents $ 8,800 $ — $ — $ 8,800 Short-term investments 102 — — 102 $ 8,902 $ — $ — $ 8,902 At December 31, 2020 Assets: Cash and cash equivalents $ 9,704 $ — $ — $ 9,704 Short-term investments 79 — — 79 $ 9,783 $ — $ — $ 9,783 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity | |
Schedule of status of the restricted stock grants issued under the Equity Plan | Weighted Average Grant Date Fair Number of Value Per Restricted Stock Grants Shares Share Outstanding at December 31, 2020 224,002 $ 0.36 Granted during the period 335,000 0.67 Restrictions lifted during the period (265,668) 0.47 Forfeited during the period — — Outstanding September 30, 2021 293,334 $ 0.61 |
Schedule of restricted stock units | Weighted Average Grant Date Fair Number of Value Per Restricted Stock Units Shares Share Outstanding at December 31, 2020 3,610,038 $ 0.70 Granted during the period 300,000 0.67 Restrictions lifted during the period — — Forfeited during the period — — Outstanding September 30, 2021 3,910,038 $ 0.70 |
Summary of the status of the Company's common stock warrants | Weighted Number of Average Exercise Underlying Price Per Common Stock Warrants Shares Share Outstanding at December 31, 2019 14,653,846 $ 0.39 Granted during the period: April 2020 Series A warrants 7,500,000 0.30 April 2020 Series B warrants 3,750,000 0.30 Exercised during period April 2020 Series A warrants (5,000,000) 0.30 April 2020 Series B warrants (3,500,000) 0.30 Outstanding at December 31, 2020 17,403,846 0.38 Exercised during period July 2019 Series A warrants (200,000) 0.35 July 2019 Series B warrants (1,500,000) 0.35 April 2020 Series A warrants (1,400,000) 0.30 Outstanding September 30, 2021 14,303,846 $ 0.39 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Information | |
Schedule of reconciliation of net loss for the period to cash used in operations | Nine Months Ended September 30, 2021 2020 (in thousands) Cash flows from operating activities: Net loss $ (3,577) $ (6,945) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 466 770 Accretion of asset retirement obligation 196 184 Decrease in derivative at fair value, net — 3 Gain on trading securities (24) — Write off of deferred financing costs 352 — Asset write off — 100 Gain on sale of assets (17) (25) Stock compensation 1,491 771 Changes in operating assets and liabilities from continuing operations: Increase in lease receivable — (54) Decrease in prepaid expenses and other assets 343 30 (Increase) decrease in inventories (1,552) 33 Increase in value added tax recoverable, net (1,058) — Decrease in other long-term assets 301 143 Decrease in reclamation liability (33) (3) Increase (decrease) in accounts payable and accrued liabilities 2,029 (823) Decrease in other current liabilities (343) (1,594) Decrease in deferred revenue (404) (372) Decrease in other long-term liabilities (263) (109) Net cash used in operating activities $ (2,093) $ (7,891) Nine Months Ended September 30, 2021 2020 (in thousands) Supplemental disclosure: Interest paid $ 7 $ 95 Income taxes paid $ — $ 284 Supplemental disclosure of non-cash transactions: Deferred equity offering costs amortized $ 57 $ 32 Deferred equity offering costs written off $ 352 $ — |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Information | |
Schedule of financial information relating to discontinued operations and continuing operations | Exploration, El Costs Depreciation, Quevar, Velardeña Three Months Ended Applicable Depletion and and Administrative Pre-Tax (gain) Capital September 30, 2021 Revenue to Sales Amortization Expense loss Total Assets Expenditures Mexico Operations $ 8,479 $ 4,292 $ 125 $ (596) $ (3,007) $ 168 Corporate, Exploration and Other — — 18 4,158 2,408 3 $ 8,479 $ 4,292 $ 143 $ 3,562 $ (599) $ 171 Nine Months Ended September 30, 2021 Mexico Operations $ 16,118 $ 9,156 $ 343 $ 753 $ (4,199) $ 8,727 $ 1,479 Corporate, Exploration and Other — — 123 7,724 7,573 11,335 63 $ 16,118 $ 9,156 $ 466 $ 8,477 $ 3,374 $ 20,062 $ 1,542 Three Months Ended September 30, 2020 Mexico Operations $ 2,146 $ 582 $ 162 $ 358 $ (959) $ 65 Corporate, Exploration and Other — — 64 2,056 2,227 35 $ 2,146 $ 582 $ 226 $ 2,414 $ 1,268 $ 100 Nine Months Ended September 30, 2020 Mexico Operations $ 4,566 $ 1,566 $ 562 $ 1,339 $ (820) $ 4,912 $ 66 Corporate, Exploration and Other — — 208 6,608 7,747 11,668 35 $ 4,566 $ 1,566 $ 770 $ 7,947 $ 6,927 $ 16,580 $ 101 |
Basis of Preparation of Finan_2
Basis of Preparation of Financial Statements and Nature of Operations (Details) | Sep. 30, 2021 | Apr. 09, 2020 |
Rodeo Property | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Investment ownership percentage | 100.00% | |
Velardena Properties | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Investment ownership percentage | 100.00% | |
El Quevar Project | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Investment ownership percentage | 100.00% | |
Barrick Earn-In Agreement | El Quevar Project | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Investment ownership percentage | 70.00% |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-term Investments (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Cash and Cash Equivalents, at Carrying Value | $ 8,800,000 | $ 9,704,000 | $ 8,658,000 | $ 4,593,000 |
Financial institutions minimum net worth | 1,000,000,000 | |||
Trading securities, cost | 59,000 | 59,000 | ||
Total short term, cost | 59,000 | 59,000 | ||
Total short term | 102,000 | 79,000 | ||
Cash and cash equivalent, frozen bank balance | 153,000 | |||
Trading securities | ||||
Trading securities, cost | $ 59,000 | $ 59,000 | ||
Sale of Santa Maria Property | Options Agreement | Fabled Copper Corp. | ||||
Consideration Received in Shares | shares | 1,000,000 | 1,000,000 | ||
Percentage of interest claims | 100.00% | |||
Estimated Fair Value. | ||||
Trading securities | $ 102,000 | $ 79,000 | ||
Total short term | 102,000 | 79,000 | ||
Estimated Fair Value. | Trading securities | ||||
Trading securities | 102,000 | 79,000 | ||
Carrying Value. | ||||
Trading securities | 102,000 | 79,000 | ||
Total short term | 102,000 | 79,000 | ||
Carrying Value. | Trading securities | ||||
Trading securities | $ 102,000 | $ 79,000 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Prepaid Expenses and Other Assets | ||
Prepaid insurance | $ 276 | $ 571 |
Recoupable deposits and other | 583 | 559 |
Prepaid expenses and other assets | 859 | $ 1,130 |
Receivables for Reimbursement of Costs | $ 200 |
Inventories, net (Details)
Inventories, net (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)oz | Dec. 31, 2020USD ($) | |
Inventories, net | $ 1,857,000 | $ 284,000 |
Rodeo Project | ||
Dore inventory | 927,000 | 0 |
In-process inventory | 475,000 | 0 |
Material and supplies | 455,000 | 284,000 |
Inventories, net | 1,857,000 | 284,000 |
Capitalized depreciation and amortization | 25,000 | |
Obsolescence allowance | $ 300,000 | $ 300,000 |
Dore inventory gold | oz | 1,010 | |
Dore inventory silver | oz | 2,390 |
Value added tax receivable, n_2
Value added tax receivable, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Value added tax receivable, net (Note 6) | $ 1,103 | $ 1,103 | $ 45 |
Mexico | |||
Value added tax receivable, net (Note 6) | 1,100 | $ 1,100 | |
Expected period within which current amount of VAT will be recovered | 1 year | ||
VAT receivables offset against VAT payable | 400 | $ 400 | |
Proceeds from VAT refunds | $ 1,500 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 35,400 | $ 33,958 |
Less: Accumulated depreciation and amortization | (28,879) | (28,438) |
Property, plant and equipment, net | 6,521 | 5,520 |
Mineral properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 9,353 | 9,353 |
Exploration properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 2,418 | 2,418 |
Royalty properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 200 | 200 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 3,807 | 3,755 |
Mining equipment and machinery | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 17,409 | 16,135 |
Other furniture and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 1,319 | 890 |
Construction in progress | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 259 | |
Asset retirement cost | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 894 | $ 948 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Disposals (Details) - USD ($) | Dec. 04, 2020 | Jul. 14, 2020 | Apr. 09, 2020 | Sep. 30, 2021 | Jul. 14, 2021 | Dec. 31, 2020 |
Property, plant and equipment | ||||||
Minimum work expenditures spend to withdraw agreement | $ 1,000,000 | |||||
Contract with Customer, Liability, Current | $ 116,000 | $ 500,000 | $ 535,000 | |||
Barrick Earn-In Agreement | ||||||
Property, plant and equipment | ||||||
Investment ownership percentage | 30.00% | |||||
Barrick Gold Corporation | Barrick Earn-In Agreement | ||||||
Property, plant and equipment | ||||||
Total work expenditure Incur | $ 10,000,000 | |||||
Period for work expenditure | 8 years | |||||
Work expenditure incur for year one | $ 500,000 | |||||
Work expenditure incur for year two | 500,000 | |||||
Work expenditure incur for year three | 1,000,000 | |||||
Work expenditure incur for year four | 1,000,000 | |||||
Work expenditure incur for year five | 1,000,000 | |||||
Work expenditure incur for year six | 2,000,000 | |||||
Work expenditure incur for year seven | 2,000,000 | |||||
Work expenditure incur for year eight | 2,000,000 | |||||
Minimum work expenditures spend to withdraw agreement | $ 1,000,000 | |||||
Number of Days Notice Required to Withdraw Agreement | 30 days | |||||
NewCo | Barrick Earn-In Agreement | ||||||
Property, plant and equipment | ||||||
Investment ownership percentage | 70.00% | |||||
Sale of Santa Maria Property | ||||||
Property, plant and equipment | ||||||
Remaining payment | $ 200,000 | |||||
Remaining Period Of Time For Final Payment | 1 year | |||||
Sale of Santa Maria Property | Fabled Copper Corp. | Binding Letter of Intent Agreement | ||||||
Property, plant and equipment | ||||||
Percentage of interest claims | 100.00% | |||||
Cash consideration received | $ 500,000 | |||||
Consideration Received in Shares | shares | 1,000,000 | |||||
First year anniversary consideration | $ 1,500,000 | |||||
Second year anniversary consideration | $ 2,000,000 | |||||
Percentage of royalty return | 1.00% | |||||
Velardena Properties | ||||||
Property, plant and equipment | ||||||
Investment ownership percentage | 100.00% | |||||
El Quevar Project | ||||||
Property, plant and equipment | ||||||
Investment ownership percentage | 100.00% | |||||
El Quevar Project | Barrick Gold Corporation | Barrick Earn-In Agreement | ||||||
Property, plant and equipment | ||||||
Investment ownership percentage | 70.00% | |||||
Private Placement | Barrick Gold Corporation | ||||||
Property, plant and equipment | ||||||
Sale of Stock, Number of Shares Issued in Transaction | 4,719,207 | |||||
Sale of Stock, Price Per Share | $ 0.2119 |
Other Long-Term Assets - Schedu
Other Long-Term Assets - Schedule of other long term assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Other Long-Term Assets | ||
Deferred offering costs | $ 70 | $ 479 |
Right of use assets | 750 | 993 |
Other long-term assets | $ 820 | $ 1,472 |
Other Long- Term Assets (Detail
Other Long- Term Assets (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | Jun. 30, 2019 | Jun. 01, 2019 |
Change in Accounting Principle | ||||||
Operating lease liability statement of financial position (Extensible list) | Other long term liabilities | Other long term liabilities | ||||
LPC Program [Member] | ||||||
Change in Accounting Principle | ||||||
Unamortized deferred cost | $ 353,000 | |||||
Office Leases | ||||||
Change in Accounting Principle | ||||||
Right of use assets | 400,000 | $ 500,000 | ||||
Lease liability | 300,000 | 300,000 | ||||
Mining Equipment Lease Property | ||||||
Change in Accounting Principle | ||||||
Right of use assets | 300,000 | 500,000 | ||||
Lease liability | $ 100,000 | $ 300,000 | ||||
Rodeo Property | ||||||
Change in Accounting Principle | ||||||
Term of operating lease | 27 months | |||||
Right of use assets | $ 420,000 | |||||
Lease liability | $ 420,000 | |||||
Future lease payments discount rate | 7.00% | |||||
COLORADO | ||||||
Change in Accounting Principle | ||||||
Term of operating lease | 5 years 8 months | |||||
Right of use assets | $ 465,000 | |||||
Lease liability | $ 450,000 | |||||
Future lease payments discount rate | 9.50% | |||||
Mexico and Argentina | ||||||
Change in Accounting Principle | ||||||
Right of use assets | $ 45,000 | |||||
Lease liability | $ 45,000 | |||||
Mexico | ||||||
Change in Accounting Principle | ||||||
Term of operating lease | 4 years | |||||
Right of use assets | $ 174,000 | |||||
Lease liability | $ 174,000 | |||||
Argentina | ||||||
Change in Accounting Principle | ||||||
Term of operating lease | 2 years | |||||
Right of use assets | $ 18,000 | |||||
Lease liability | $ 18,000 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts payable and accruals | $ 1,907 | $ 472 |
Accrued employee compensation and benefits | 1,236 | 846 |
Income taxes payable | 203 | |
Accounts payable and other accrued liabilities | 3,346 | 1,318 |
Accrued vacation | 400 | 300 |
Withholding taxes and benefits payable | 800 | 500 |
Velardena Properties | ||
Accounts payable and accruals | 1,400 | 300 |
Accrued employee compensation and benefits | 1,000 | 600 |
Corporate, Exploration and Other | ||
Accounts payable and accruals | $ 500 | $ 200 |
Debt - Related Party (Details)
Debt - Related Party (Details) - USD ($) | Aug. 12, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Mar. 30, 2020 |
Short-term Debt [Line Items] | |||||
Payment of related party loan (Note 22) | $ 1,000,000 | ||||
Sentient Loan | |||||
Short-term Debt [Line Items] | |||||
Short Term Loan | $ 0 | $ 0 | $ 1,000,000 | ||
Short term loan interest rate | 10.00% | ||||
Payment of related party loan (Note 22) | $ 1,037,159 | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0 | ||||
Sentient Loan | Sentient | |||||
Short-term Debt [Line Items] | |||||
Ownership (as a percent) | 23.00% | 32.00% |
Other Liabilities (Details)
Other Liabilities (Details) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($)payment | Jun. 30, 2020USD ($)payment | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($) | |
Other Current Liabilities | ||||
Premium financing | $ 390,000 | $ 390,000 | ||
Other current liabilities | $ 667,000 | $ 667,000 | $ 325,000 | |
Premium amount | $ 110,000 | |||
Number of payment | payment | 8 | 12 | ||
Premium interest rate | 5.74% | 5.74% | ||
Insurance premium payable | $ 23,000 | $ 23,000 | ||
Other long term liabilities | 648,000 | 648,000 | 400,000 | |
General Liability | ||||
Other Current Liabilities | ||||
Premium financing | 23,000 | 23,000 | ||
Directors and Officers Liability Insurance | ||||
Other Current Liabilities | ||||
Premium financing | 367,000 | 367,000 | ||
Insurance premium payable | 406,000 | 406,000 | ||
Office Leases | ||||
Other Current Liabilities | ||||
Office lease liability | 138,000 | 138,000 | 146,000 | |
Operating lease liability | 300,000 | 300,000 | 300,000 | |
Mining Equipment Lease Property | ||||
Other Current Liabilities | ||||
Office lease liability | 139,000 | 139,000 | 179,000 | |
Operating lease liability | $ 300,000 | $ 300,000 | $ 100,000 |
Asset Retirement Obligation a_3
Asset Retirement Obligation and Reclamation Liabilities (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2012 | |
Asset retirement and reclamation liabilities | $ 3,274,000 | ||
Summary of activity in the Velardena Operations ARO | |||
ARO, Beginning balance | 3,166,000 | ||
Accretion expense | 196,000 | $ 184,000 | |
ARO, Ending balance | 3,274,000 | ||
Velardena Properties | |||
Asset retirement and reclamation liabilities | 3,266,000 | 3,091,000 | $ 1,900,000 |
Summary of activity in the Velardena Operations ARO | |||
ARO, Beginning balance | 3,156,000 | 2,825,000 | |
Changes in estimates, and other | (86,000) | 82,000 | |
Accretion expense | 196,000 | 184,000 | |
ARO, Ending balance | 3,266,000 | 3,091,000 | |
Rodeo Project | |||
Environmental costs | $ 0 | $ 0 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Level 2 | ||
Fair value measurements | ||
Assets | $ 0 | $ 0 |
Liabilities | 0 | 0 |
Level 3 | ||
Fair value measurements | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Recurring | ||
Fair value measurements | ||
Cash and cash equivalents | 8,800,000 | 9,704,000 |
Short-term investments | 102,000 | 79,000 |
Assets | 8,902,000 | 9,783,000 |
Recurring | Level 1 | ||
Fair value measurements | ||
Cash and cash equivalents | 8,800,000 | 9,704,000 |
Short-term investments | 102,000 | 79,000 |
Assets | 8,902,000 | 9,783,000 |
Non-recurring | ||
Fair value Assumptions | ||
Fair value measurements | $ 0 | $ 0 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Taxes | |||||
Income Tax Expense (Benefit) | $ 188,000 | $ 18,000 | $ 203,000 | $ 18,000 | |
Current tax expense | 162,000 | ||||
Deferred tax expense | 41,000 | ||||
Net deferred tax assets | 0 | 0 | $ 0 | ||
Net deferred tax liabilities | 0 | 0 | 0 | ||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Equity - Issue and Conversion (
Equity - Issue and Conversion (Details) - USD ($) | Jul. 21, 2020 | Apr. 22, 2020 | Apr. 20, 2020 | Apr. 09, 2020 | Jul. 17, 2019 | Dec. 31, 2016 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | May 09, 2018 |
Proceeds from issuance of common stock, net of issuance costs | $ 2,714,000 | $ 12,032,000 | |||||||||
Warrants Series A and B | |||||||||||
Exercise price | $ 0.24 | ||||||||||
Warrants issued | $ 1,900,000 | ||||||||||
Expected volatility (as a percent) | 95.00% | ||||||||||
Risk-free rate (as a percent) | 0.41% | ||||||||||
Series B Warrants | |||||||||||
Warrants Exercise Period | 6 months | ||||||||||
Private Placement | |||||||||||
Total cost of offering | $ 334,000 | ||||||||||
Placement agent fee (as a percent) | 6.00% | ||||||||||
Private Placement | Warrants Series A and B | |||||||||||
Share Price | $ 0.30 | ||||||||||
Aggregate gross proceeds of warrants | $ 3,000,000 | ||||||||||
ATM Agreement | |||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 1,800,000 | $ 223,000 | |||||||||
Stock Issued During period Shares New Issues | 1,856,960 | 823,452 | |||||||||
Aggregate value of securities allowed under agreement | $ 5,000,000 | ||||||||||
Sale price (in dollars per shares) | $ 0.28 | $ 0.97 | $ 0.28 | ||||||||
Amortization of deferred cost | $ 57,000 | $ 8,000 | |||||||||
Unamortized deferred cost | $ 129,000 | $ 71,000 | $ 129,000 | ||||||||
Aggregate securities allowed under agreement (in shares) | 10,000,000 | ||||||||||
Commission rate (as a percent) | 2.00% | ||||||||||
common shares available for issuance | 2,200,000 | ||||||||||
LPC Program [Member] | |||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 216,000 | ||||||||||
Stock Issued During period Shares New Issues | 900,000 | ||||||||||
Sale price (in dollars per shares) | $ 0.27 | ||||||||||
Amortization of deferred cost | $ 24,000 | ||||||||||
Unamortized deferred cost | $ 353,000 | ||||||||||
Commitment purchase agreement | |||||||||||
Aggregate value of securities allowed under agreement | $ 10,000,000 | ||||||||||
Firm Commitment Offering | |||||||||||
Number of shares to purchase in agreement | 17,857,143 | ||||||||||
Purchase price | $ 0.42 | ||||||||||
Percentage of underwriting discount | 6.00% | ||||||||||
Total cost of offering | $ 155,000 | ||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 8,000,000 | ||||||||||
Over-Allotment Option | |||||||||||
Number of shares to purchase in agreement | 2,678,571 | ||||||||||
Minimum | Private Placement | |||||||||||
Warrants Exercise Period | 6 months | ||||||||||
Maximum | Private Placement | |||||||||||
Expiration term of warrant | 5 years | ||||||||||
Common Stock | Private Placement | |||||||||||
Stock Issued During period Shares New Issues | 15,000,000 | 15,000,000 | |||||||||
Share Price | $ 0.20 | ||||||||||
Common shares issuable upon exercise | 11,250,000 | ||||||||||
Common Stock | Private Placement | Series A Warrants | |||||||||||
Common shares issuable upon exercise | 7,500,000 | ||||||||||
Common Stock | Private Placement | Series B Warrants | |||||||||||
Common shares issuable upon exercise | 3,750,000 | ||||||||||
Exercise price | $ 0.26 | ||||||||||
Common Stock | Subscription Agreement | |||||||||||
Stock Issued During period Shares New Issues | 4,719,207 | ||||||||||
Common Stock | Firm Commitment Offering | |||||||||||
Stock Issued During period Shares New Issues | 20,535,714 | ||||||||||
Barrick | Subscription Agreement | |||||||||||
Number of shares to purchase in agreement | 4,719,207 | ||||||||||
Purchase price | $ 0.2119 | ||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 900,000 |
Equity - Non-Option Incentive (
Equity - Non-Option Incentive (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Number of Shares - Non-option | ||||
Number of employees shares were granted | 9 | |||
Allocated Share-based Compensation Expense | $ 75,000 | $ 105,000 | $ 1,491,000 | $ 771,000 |
Restriction lifted grants made in current year(in shares) | 154,002 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 1.00% | |||
Number of employees share based payment arrangement | 6 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Right To Receive Unrestricted Common Shares In Exchange For Vested Awards Upon Termination Of Agreement, Number | 1 | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||||
Compensation expense | $ 75,000 | $ 105,000 | $ 1,491,000 | $ 771,000 |
Percentage of awards which will vest on each of the first, second and third anniversaries of the grant date | 1.00% | |||
Restricted Stock Units (RSUs) | ||||
Number of Shares - Non-option | ||||
Allocated Share-based Compensation Expense | $ 67,000 | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||||
Compensation expense | $ 67,000 | |||
Restricted Stock Units (RSUs) | Consultant | ||||
Number of Shares - Non-option | ||||
Granted during the year (in shares) | 100,000 | |||
KELTIP Units | ||||
Number of Shares - Non-option | ||||
Outstanding at beginning of year (in shares) | 3,725,000 | |||
Granted during the year (in shares) | 1,400,000 | |||
Allocated Share-based Compensation Expense | $ 500,000 | |||
Outstanding at end of year (in shares) | 5,330,000 | 5,330,000 | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||||
Compensation expense | $ 500,000 | |||
Equity Plan | Restricted Stock | ||||
Number of Shares - Non-option | ||||
Outstanding at beginning of year (in shares) | 224,002 | |||
Granted during the year (in shares) | 335,000 | |||
Restrictions lifted during the year (in shares) | (265,668) | |||
Forfeited during the year (in shares) | ||||
Allocated Share-based Compensation Expense | $ 139,000 | |||
Outstanding at end of year (in shares) | 293,334 | 293,334 | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||||
Outstanding at beginning of year (in dollars per share) | $ 0.36 | |||
Granted during the year (in dollars per share) | 0.67 | |||
Restrictions lifted during the year (in dollars per share) | 0.47 | |||
Forfeited during the year (in dollars per share) | ||||
Outstanding at end of year (in dollars per share) | $ 0.61 | $ 0.61 | ||
Compensation expense | $ 139,000 | |||
Additional compensation expense expected to be recognized | $ 98,000 | $ 98,000 | ||
Period for future recognition of additional compensation expense | 21 months | |||
Deferred Compensation Plan | Restricted Stock Units (RSUs) | ||||
Number of Shares - Non-option | ||||
Outstanding at beginning of year (in shares) | 3,610,038 | |||
Granted during the year (in shares) | 300,000 | |||
Restrictions lifted during the year (in shares) | ||||
Forfeited during the year (in shares) | ||||
Allocated Share-based Compensation Expense | $ 162,000 | |||
Outstanding at end of year (in shares) | 3,910,038 | 3,910,038 | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||||
Outstanding at beginning of year (in dollars per share) | $ 0.70 | |||
Granted during the year (in dollars per share) | 0.67 | |||
Restrictions lifted during the year (in dollars per share) | ||||
Forfeited during the year (in dollars per share) | ||||
Outstanding at end of year (in dollars per share) | $ 0.70 | $ 0.70 | ||
Compensation expense | $ 162,000 | |||
Additional compensation expense expected to be recognized | $ 127,000 | $ 127,000 | ||
Period for future recognition of additional compensation expense | 9 months | |||
Number of unrestricted shares Director to receive for vested RSU upon termination from board | 1 | |||
Deferred Compensation Plan | Restricted Stock Units (RSUs) | Board Members [Member] | ||||
Number of Shares - Non-option | ||||
Granted during the year (in shares) | 50,000 | |||
KELTIP | ||||
Number of Shares - Non-option | ||||
Granted during the year (in shares) | 1,605,000 | |||
Allocated Share-based Compensation Expense | $ 1,000,000 | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||||
Compensation expense | $ 1,000,000 | |||
Restricted Stock | Employee Stock Option | ||||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 335,000 |
Equity - Warrants (Details)
Equity - Warrants (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 22, 2020 | Apr. 20, 2020 | Jul. 17, 2019 | May 31, 2016 | Jun. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Warrant | |||||||
Number of Underlying Shares | |||||||
Outstanding, beginning balance (in shares) | 17,403,846 | 14,653,846 | |||||
Outstanding, end balance (in shares) | 14,303,846 | 17,403,846 | |||||
Weighted Average Exercise Price Per Share | |||||||
Outstanding, beginning balance (in dollars per share) | $ 0.38 | $ 0.39 | |||||
Outstanding, end balance (in dollars per share) | $ 0.39 | $ 0.38 | |||||
May 2016 Warrants | |||||||
Number of Underlying Shares | |||||||
Exchanged during period (in shares) | 4,500,000 | ||||||
Series B Warrants | |||||||
Number of Underlying Shares | |||||||
Exchanged during period (in shares) | 4,500,000 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Exchanged during the period (in dollar per share) | $ 0.35 | ||||||
Warrants exercise period | 6 months | ||||||
July 2019 Series A warrants | |||||||
Number of Underlying Shares | |||||||
Exercised (in shares) | (200,000) | ||||||
Weighted Average Exercise Price Per Share | |||||||
Exercised during period (in dollar per share) | $ 0.35 | ||||||
July 2019 Series B warrants | |||||||
Number of Underlying Shares | |||||||
Exercised (in shares) | (1,500,000) | ||||||
Weighted Average Exercise Price Per Share | |||||||
Exercised during period (in dollar per share) | $ 0.35 | ||||||
April 2020 Series A warrants | |||||||
Number of Underlying Shares | |||||||
Granted (in shares) | 7,500,000 | ||||||
Exercised (in shares) | (1,400,000) | (5,000,000) | |||||
Weighted Average Exercise Price Per Share | |||||||
Granted (in dollars per share) | $ 0.30 | ||||||
Exercised during period (in dollar per share) | $ 0.30 | $ 0.30 | |||||
April 2020 Series B warrants | |||||||
Number of Underlying Shares | |||||||
Granted (in shares) | 3,750,000 | ||||||
Exercised (in shares) | (3,500,000) | ||||||
Weighted Average Exercise Price Per Share | |||||||
Granted (in dollars per share) | $ 0.30 | ||||||
Exercised during period (in dollar per share) | $ 0.30 | ||||||
Private Placement | Series A Warrants | |||||||
Number of Underlying Shares | |||||||
Exercised (in shares) | 6,400,000 | 6,400,000 | |||||
Outstanding, end balance (in shares) | 1,100,000 | ||||||
Private Placement | Series B Warrants | |||||||
Number of Underlying Shares | |||||||
Exercised (in shares) | 3,500,000 | 3,500,000 | |||||
Outstanding, end balance (in shares) | 250,000 | ||||||
Registered Offering | |||||||
Weighted Average Exercise Price Per Share | |||||||
Stock Issued During period Shares New Issues | 8,000,000 | ||||||
Sale price (in dollars per shares) | $ 0.50 | ||||||
Gross proceeds from common stock sale | $ 4 | ||||||
Registered Offering | May 2016 Warrants | |||||||
Number of Underlying Shares | |||||||
Outstanding, end balance (in shares) | 1,500,000 | ||||||
Registered Offering | Series A Warrants | |||||||
Number of Underlying Shares | |||||||
Exercised (in shares) | 200,000 | ||||||
Outstanding, end balance (in shares) | 8,453,846 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Warrants exercise period | 6 months | ||||||
Registered Offering | Series B Warrants | |||||||
Number of Underlying Shares | |||||||
Exercised (in shares) | 1,500,000 | ||||||
Outstanding, end balance (in shares) | 3,000,000 | ||||||
Registered Offering | 2016 Warrants | |||||||
Number of Underlying Shares | |||||||
Outstanding, end balance (in shares) | 6,000,000 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Number of shares of common stock per capital unit (in shares) | 0.75 | ||||||
Number of common shares which can be purchased with each warrant | 1 | ||||||
Warrants exercise period | 5 years | ||||||
LPC Program [Member] | |||||||
Weighted Average Exercise Price Per Share | |||||||
Stock Issued During period Shares New Issues | 900,000 | ||||||
Sale price (in dollars per shares) | $ 0.27 | ||||||
Common Stock | Private Placement | |||||||
Weighted Average Exercise Price Per Share | |||||||
Stock Issued During period Shares New Issues | 15,000,000 | 15,000,000 | |||||
Common shares issuable upon exercise | 11,250,000 | ||||||
Common Stock | Private Placement | Series A Warrants | |||||||
Weighted Average Exercise Price Per Share | |||||||
Common shares issuable upon exercise | 7,500,000 | ||||||
Common Stock | Private Placement | Series B Warrants | |||||||
Weighted Average Exercise Price Per Share | |||||||
Outstanding, end balance (in dollars per share) | $ 0.26 | ||||||
Common shares issuable upon exercise | 3,750,000 | ||||||
Common Stock | Registered Offering | |||||||
Weighted Average Exercise Price Per Share | |||||||
Stock Issued During period Shares New Issues | 8,653,846 |
Sale of Metals and Related Co_2
Sale of Metals and Related Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 8,479,000 | $ 16,118,000 | |
Costs Applicable to Sales | $ 4,292,000 | $ 9,156,000 | |
Percentage of provisional payment for gold and silver | 95.00% | ||
Term of final payment within shipment date | 30 days | ||
Dore [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | ||
Charge to cost of goods sold | $ 0 | ||
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Provisional payment term of gold and silver | 10 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Provisional payment term of gold and silver | 12 days |
Oxide Plant Lease Revenue and_2
Oxide Plant Lease Revenue and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Lease revenue | $ 2,146 | $ 4,566 |
Lease related costs | $ 582 | 1,566 |
Velardena Properties | ||
Lease related costs | $ 1,600 |
Interest and Other Expense, N_2
Interest and Other Expense, Net (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
LPC Program [Member] | ||
Interest and Other Income [Line Items] | ||
Interest and other expense | $ 0.3 | $ 0.1 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||||
Net loss | $ (3,577,000) | $ (6,945,000) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | $ 143,000 | $ 226,000 | 466,000 | 770,000 |
Accretion of asset retirement obligation | 196,000 | 184,000 | ||
Decrease (increase) in derivative at fair value, net | 3,000 | |||
Gain on trading securities | (24,000) | |||
Write off of deferred financing costs | 352,000 | |||
Asset write off | 100,000 | |||
Gain on sale of assets | (17,000) | (25,000) | ||
Stock compensation | 1,491,000 | 771,000 | ||
Changes in operating assets and liabilities from continuing operations: | ||||
Increase in lease receivable | (54,000) | |||
(Increase) decrease in prepaid expenses and other assets | 343,000 | 30,000 | ||
(Increase) decrease in inventories | (1,552,000) | 33,000 | ||
Decrease in value added tax recoverable, net | (1,058,000) | |||
Decrease in other long-term assets | 301,000 | 143,000 | ||
Decrease in reclamation liability | (33,000) | (3,000) | ||
Increase (decrease) in accounts payable and accrued liabilities | 2,029,000 | (823,000) | ||
Decrease in other current liabilities | (343,000) | (1,594,000) | ||
Decrease in deferred revenue | (404,000) | (372,000) | ||
Decrease in other long-term liabilities | (263,000) | (109,000) | ||
Net cash used in operating activities | $ (2,093,000) | $ (7,891,000) |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Supplemental and Non-cash transactions (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Cash Flow Information | ||
Interest paid | $ 7 | $ 95 |
Income taxes paid | 284 | |
Deferred equity offering costs amortized | 57 | $ 32 |
Deferred equity offering costs written off | $ 352 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Frozen Bank Account Estimated Value | $ 153,000 | |
Accounts payable and other accrued liabilities (Note 10) | 3,346,000 | $ 1,318,000 |
Contingencies | ||
Loss contingency | 0 | |
Gain on contingencies | $ 0 | |
Potential Lawsuit From Unifin Financiera [Member] | Threatened Litigation [Member] | ||
Frozen Bank Account Estimated Value | 153,000 | |
Loss Contingency, Damages Sought, Value | 12,500,000 | |
Accounts payable and other current liabilities | ||
Accounts payable and other accrued liabilities (Note 10) | $ 136,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Information | |||||
Number of reportable segments | segment | 2 | ||||
Revenue | $ 8,479 | $ 2,146 | $ 16,118 | $ 4,566 | |
Costs Applicable to Sales | 4,292 | 582 | 9,156 | 1,566 | |
Depreciation, depletion and amortization | 143 | 226 | 466 | 770 | |
Exploration, El Quevar, Velardena and Administrative Expense | 3,562 | 2,414 | 8,477 | 7,947 | |
Pre-Tax (gain) loss | (599) | 1,268 | 3,374 | 6,927 | |
Total Assets | 20,062 | 16,580 | 20,062 | 16,580 | $ 18,306 |
Capital Expenditures | 171 | 100 | 1,542 | 101 | |
Mexico Operations | |||||
Segment Information | |||||
Revenue | 8,479 | 2,146 | 16,118 | 4,566 | |
Costs Applicable to Sales | 4,292 | 582 | 9,156 | 1,566 | |
Depreciation, depletion and amortization | 125 | 162 | 343 | 562 | |
Exploration, El Quevar, Velardena and Administrative Expense | (596) | 358 | 753 | 1,339 | |
Pre-Tax (gain) loss | (3,007) | (959) | (4,199) | (820) | |
Total Assets | 8,727 | 4,912 | 8,727 | 4,912 | |
Capital Expenditures | 168 | 65 | $ 1,479 | 66 | |
Velardena Properties | |||||
Segment Information | |||||
Number of reportable segments | segment | 1 | ||||
Corporate, Exploration and Other | |||||
Segment Information | |||||
Depreciation, depletion and amortization | 18 | 64 | $ 123 | 208 | |
Exploration, El Quevar, Velardena and Administrative Expense | 4,158 | 2,056 | 7,724 | 6,608 | |
Pre-Tax (gain) loss | 2,408 | 2,227 | 7,573 | 7,747 | |
Total Assets | 11,335 | 11,668 | 11,335 | 11,668 | |
Capital Expenditures | $ 3 | $ 35 | $ 63 | $ 35 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) shares in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Mar. 30, 2020 | |
Minera Inde | |||
Related Party Transaction | |||
Shares issued | 162.5 | ||
Shares outstanding | 162.5 | ||
Monthly charges received | $ 15,000 | ||
Received amount | 204,000 | ||
Sentient Loan | |||
Related Party Transaction | |||
Debt - related party | $ 0 | $ 0 | $ 1,000,000 |
Short term loan interest rate | 10.00% | ||
Sentient Loan | Sentient | |||
Related Party Transaction | |||
Ownership (as a percent) | 23.00% | 32.00% |