Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Entity Registrant Name | New Jersey Mining Company | |
Entity Central Index Key | 1030192 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 91,760,148 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well Known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
New_Jersey_Mining_Company_Cons
New Jersey Mining Company Consolidated Balance Sheets (interim period unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Current assets: | ||||
Cash and cash equivalents | $27,347 | $336,525 | ||
Joint venture receivables | 58,729 | 55,021 | ||
Note receivable | 58,386 | 58,386 | ||
Milling receivables | 227,500 | 117,615 | ||
Other current assets | 19,702 | 22,495 | ||
Total current assets | 391,664 | 590,042 | ||
Property, plant and equipment, net of accumulated depreciation | 5,609,132 | 5,654,199 | ||
Mineral properties, net of accumulated amortization | 557,458 | 557,458 | ||
Deposit on equipment | 51,004 | 12,480 | ||
Total assets | 6,609,258 | 6,814,179 | ||
Current liabilities: | ||||
Accounts payable | 135,370 | 77,913 | ||
Accrued payroll and related payroll expenses | 42,634 | 49,960 | ||
Interest payable on note | 6,417 | |||
Note payable related party, short term | 40,577 | 39,384 | ||
Milling advance | 200,000 | 200,000 | ||
Notes payable, short term | 180,472 | 180,385 | ||
Total current liabilities | 605,470 | 547,642 | ||
Asset retirement obligation | 24,688 | 23,366 | ||
Note payable related party, long term | 130,430 | 141,033 | ||
Notes payable, long term | 146,887 | 148,288 | ||
Total long term liabilities | 302,005 | 312,687 | ||
Total liabilities | 907,475 | 860,329 | ||
Commitments | 0 | [1] | 0 | [1] |
Stockholders' equity: | ||||
Preferred stock, no par value, 1,000,000 shares authorized; no shares issued or outstanding | 0 | 0 | ||
Common stock, no par value, 200,000,000 shares authorized; 2015 and 2014-91,760,148 shares issued and outstanding | 13,469,855 | 13,442,395 | ||
Accumulated deficit | -11,004,505 | -10,735,658 | ||
Total New Jersey Mining Company stockholders' equity | 2,465,350 | 2,706,737 | ||
Non-controlling interest in New Jersey Mill Joint Venture and GF and H Company | 3,236,433 | 3,247,113 | ||
Total stockholders' equity | 5,701,783 | 5,953,850 | ||
Total liabilities and stockholders' equity | $6,609,258 | $6,814,179 | ||
[1] | Notes 3 and 9 |
Statement_of_Financial_Positio
Statement of Financial Position - Parenthetical (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of financial position | ||
Preferred Stock, Par Value | $0 | $0 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $0 | $0 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 91,760,148 | 91,760,148 |
Common Stock, Shares Outstanding | 91,760,148 | 91,760,148 |
New_Jersey_Mining_Company_Cons1
New Jersey Mining Company Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue: | ||
Joint venture management fee income | $76 | |
Milling income | 391,120 | |
Total revenue | 391,120 | 76 |
Costs and expenses: | ||
Milling | 338,770 | 13,204 |
Exploration | 47,057 | 84,569 |
Depreciation and amortization | 48,919 | 14,526 |
Management | 56,539 | 22,756 |
Professional services | 60,777 | 81,862 |
General and administrative expenses | 108,418 | 51,907 |
Total operating expenses | 660,480 | 268,824 |
Operating income (loss) | -269,360 | -268,748 |
Other (income) expense: | ||
Other income | -11,885 | |
Interest income | -1,471 | -126 |
Interest expense | 11,638 | 11,619 |
Total other (income) expense | 10,167 | -392 |
Income tax (provision) benefit | 0 | 0 |
Net loss | -279,527 | -268,356 |
Net loss attributable to non-controlling interests | -10,679 | |
Net loss attributable to New Jersey Mining Company | ($268,848) | ($268,356) |
Net loss per common share-basic and diluted | $0 | $0 |
Weighted average common shares outstanding-basic and diluted | 91,760,148 | 75,760,148 |
New_Jersey_Mining_Company_Cons2
New Jersey Mining Company Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | ($279,527) | ($268,356) |
Adjustments to reconcile net loss to net cash (used) by operating activities: | ||
Depreciation and amortization | 48,919 | 14,526 |
Accretion of asset retirement obligation | 1,323 | 288 |
Stock based compensation | 27,458 | |
Change in: | ||
Joint venture receivables | -3,708 | -31,430 |
Milling receivables | -109,885 | |
Other current assets | 2,793 | 70 |
Accounts payable | 57,457 | 16,754 |
Interest payable | 6,417 | |
Accrued payroll and related payroll expense | -7,325 | 6,651 |
Net cash (used) by operating activities | -256,078 | -261,497 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | -3,852 | -5,633 |
Deposits on Equipment | -38,524 | -23,616 |
Net cash used by investing activities | -42,376 | -29,249 |
Cash flows from financing activities: | ||
Sales of common stock and warrants, net of issuance costs | 405,000 | |
Principal payments on notes payable | -1,314 | -16,156 |
Principal payments on capital lease | -8,555 | |
Principal payments on note and other payables, related party, net | -9,410 | -1,133 |
Proceeds from non-controlling interest, net | 8,554 | |
Net cash provided (used) by financing activities | -10,724 | 387,710 |
Net change in cash and cash equivalents | -309,178 | 96,964 |
Cash and cash equivalents, beginning of period | 336,525 | 636,127 |
Cash and cash equivalents, end of period | $27,347 | $733,091 |
1_The_Company_and_Significant_
1. The Company and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
1. The Company and Significant Accounting Policies: | 1. The Company and Significant Accounting Policies: |
These unaudited interim consolidated financial statements have been prepared by the management of New Jersey Mining Company (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim consolidated financial statements have been included. | |
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations. Operating results for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2015. | |
For further information refer to the financial statements and footnotes thereto in the Company’s audited financial statements for the year ended December 31, 2014 as filed with the Securities and Exchange Commission. | |
Principles of Consolidation | |
At March 31, 2015, the consolidated financial statements include the accounts of the Company, the accounts of our majority owned New Jersey Mill Joint Venture, and the accounts of GF&H as of July 14, 2014, an entity in which New Jersey Mining has two thirds of the ownership. Intercompany items and transactions between companies included in the consolidation are eliminated. | |
Revenue Recognition | |
Revenue is recognized when title and risk of ownership of metals or metal bearing concentrate have passed and collection is reasonably assured. Revenue from the sale of metals may be subject to adjustment upon final settlement of estimated metal prices, weights and assays, and are recorded as adjustments to revenue in the period of final settlement of prices, weights and assays; such adjustments are typically not material in relation to the initial invoice amounts. Revenue received from drilling and exploration contracts with third parties is recognized when the contract has been established, the services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Income received as the operator of the Company’s joint ventures is recognized in the months during which those operations occur. Revenue received from engineering services provided is recognized when services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Revenues from mill operations and custom milling are recognized in the period in which the milling is performed and collection of payment is deemed probable. | |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the 2014 financial statement presentation. Reclassifications had no effect on net loss, stockholders’ equity, or cash flows as previously reported. | |
2_Going_Concern
2. Going Concern | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
2. Going Concern | 2. Going Concern |
As shown in the accompanying financial statements, the Company had minimal revenue and a net loss of $279,527 in the first quarter of 2015 as well as a Cash and Cash Equivalents balance of $27,347 at March 31, 2015. These factors raise substantial doubt about the Company’s ability to continue as a going concern. | |
However, the Company has put the New Jersey Mill into production and is proceeding through the ramp-up period of a start-up mining and milling operation. The Company has begun to generate revenue from increased rates of milling ores from the Golden Chest Mine. | |
The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue its operations. | |
3_Related_Parties
3. Related Parties | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
3. Related Parties | 3. Related Parties |
In August 2012, the Company entered into a note by Mine Systems Design (MSD) to purchase property for $223,806 at 12% interest to be paid in 60 monthly payments. At March 31, 2015 and March 31, 2014 the remaining amount due was $171,007 and $207,017, respectively. In the first three months of 2015 and 2014 $5,319 and $6,378, respectively was paid in interest. |
4_Joint_Ventures
4. Joint Ventures | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Notes | |||||||
4. Joint Ventures | 4. Joint Ventures | ||||||
For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, and the Company has significant influence the equity method is utilized. | |||||||
At March 31, 2015 and December 31, 2014, the Company’s percentage ownership and method of accounting for each joint venture is as follows: | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
Joint Venture | % Ownership | Significant Influence? | Accounting Method | % Ownership | Significant Influence? | Accounting Method | |
New Jersey Mill Joint Venture(“NJMJV”) | 66% | Yes | Consolidated | 66% | Yes | Consolidated | |
Golden Chest LLC Joint Venture (“GC”) | 48% | No | Cost | 48% | No | Cost | |
New Jersey Mill Joint Venture Agreement | |||||||
In June of 2012, Crescent Silver Corp. (“Crescent”) (holds non-controlling interest in NJMJV) completed its buy-in for 35% of the New Jersey Mill Joint Venture (the “Mill JV” or “NJMJV”) with a cumulative $3.2 million contribution to bring the capacity of the mill to 15 tonnes/hr. As of March 31, 2015 and March 31, 2014, an account receivable existed with Crescent for $37,554 and $72,696, respectively for monthly operating costs as defined in the JV agreement. | |||||||
During the quarter ended March 31, 2015 the mill processed 8,231 tonnes of ore from the Golden Chest Mine owned by GCJV which is being mined under an agreement with Gold Hill. To facilitate the startup costs for milling of the Golden Chest ore, Gold Hill advanced $200,000 interest-free to NJMC on November 7, 2014, at the beginning of the ramp–up phase. These funds will be deducted from milling receipts over a six month period once the ramp-up period is completed and most likely commencing in Q2 of 2015. | |||||||
Golden Chest LLC Joint Venture | |||||||
On September 3, 2013 the Golden Chest LLC Joint Venture (the “GC”) signed a lease agreement with Juniper Resources, LLC (Juniper) of Boise, Idaho for a defined portion of the Golden Chest mine property known as the Skookum Shoot (a 400 meter strike length along the Idaho vein below the No. 3 Level). The lease with Juniper calls for an initial payment of $50,000 to GC, which was received in 2013, and a work requirement of 1,500 to 3,000 meters of core drilling which has also been completed. Juniper signed the lease and made a payment of $200,000 to GC at the end of November 2013. Juniper is required to make land payments of $125,000 per quarter on the promissory note on behalf of GC which it also has done. Additionally, Juniper will pay a 2% net smelter royalty to GC on all gold production from the leased area with the $250,000 initial payments treated as an advance on this royalty. The lease was subsequently assigned to Gold Hill Reclamation and Mining Inc., an affiliated company. The lease has a term of 39 months. Gold Hill began shipping ore in the 4th quarter of 2014 and 10,154 tonnes have been processed at the New Jersey Mill through March 31, 2015. | |||||||
5_Noncontrolling_Interest_in_M
5. Non-controlling Interest in Mill Jv | 3 Months Ended | ||
Mar. 31, 2015 | |||
Notes | |||
5. Non-controlling Interest in Mill Jv | 5. Non-Controlling Interest in Mill JV | ||
Crescent’s non-controlling interest in NJMJV represents its investment in the Joint Venture less any losses associated with their share. Its investment changed as follows from December 31, 2014 to March 31, 2015: | |||
Balance December 31, 2014 | $ | 3,197,113 | |
Depreciation charges | -10,679 | ||
Balance March 31 2014 | $ | 3,186,433 | |
6_Earnings_Per_Share
6. Earnings Per Share | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
6. Earnings Per Share | 6. Earnings per Share |
For the three month period ended March 31, 2015, the effect of the Company’s potential issuance of shares from the exercise of 21,200,000 outstanding warrants and 4,250,000 options to purchase common stock would have been anti-dilutive. Accordingly, only basic net loss per share has been presented. | |
7_Property_Plant_and_Equipment
7. Property, Plant, and Equipment | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes | |||||
7. Property, Plant, and Equipment | 7. Property, Plant, and Equipment | ||||
Property, plant and equipment at March 31, 2015 and December 31, 2014, consisted of the following: | |||||
31-Mar-15 | 31-Dec-14 | ||||
Mill land | $ | 225,289 | $ | 225,289 | |
Mill building | 536,193 | 536,193 | |||
Milling equipment | 4,005,623 | 4,001,771 | |||
4,767,105 | 4,763,253 | ||||
Less accumulated depreciation | -196,240 | -152,151 | |||
Total mill | 4,570,865 | 4,611,102 | |||
Building and equipment at cost | 252,348 | 252,348 | |||
Less accumulated depreciation | -221,756 | -216,926 | |||
Total building and equipment | 30,592 | 35,422 | |||
Land | 1,007,675 | 1,007,675 | |||
Total | $ | 5,609,132 | $ | 5,654,199 | |
8_Mineral_Properties
8. Mineral Properties | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes | |||||
8. Mineral Properties | 8. Mineral Properties | ||||
Mineral properties at March 31, 2015 and December 31, 2014 consisted of the following: | |||||
31-Mar-15 | 31-Dec-14 | ||||
New Jersey | $ | 288,365 | $ | 288,365 | |
McKinley | 250,000 | 250,000 | |||
Silver Button/Roughwater | 25,500 | 25,500 | |||
Toboggan | 5,000 | 5,000 | |||
Less accumulated amortization | -11,407 | -11,407 | |||
Total | $ | 557,458 | $ | 557,458 | |
9_Notes_Payable
9. Notes Payable | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes | |||||
9. Notes Payable | 9. Notes Payable | ||||
At March 31, 2015 and December 31, 2014 notes payable are as follows | 31-Mar-15 | 31-Dec-14 | |||
Property with shop 36 month note payable, 4.91% interest rate payable monthly, remaining principal of note due in one payment at end of term, monthly payments of $474 | $ | 45,450 | $ | 46,337 | |
Property, 15 month note payable, 5% interest per annum, collateralized by property, one remaining payment of $175,000 | 175,000 | 175,000 | |||
Property 120 month note payable, 11.0% interest rate payable monthly, remaining principal of note due in one payment at end of term, collateralized by property, monthly payments of $1,122 | 106,909 | 107,336 | |||
Total notes payable | 327,359 | 328,673 | |||
Due within one year | 180,472 | 180,385 | |||
Due after one year | $ | 146,887 | $ | 148,288 | |
10_Equity
10. Equity | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes | |||||
10. Equity | 10. Equity | ||||
Common Stock issued for Cash | |||||
A private placement was completed by the Company in the first quarter of 2014. Each unit consist of two shares of the Company’s common stock and one purchase warrant, each warrant exercisable for one share of the Company’s stock at $0.15 through March 2017. At the closing of the private placement in March 2014, 3,000,000 units consisting of 6,000,000 shares and 3,000,000 warrants were sold for net proceeds of $405,000 after deducting the 10% commission. No shares were issued in 2015. | |||||
Stock Purchase Warrants Outstanding | |||||
No transactions in common stock purchase warrants occurred during the period ended March 31, 2015. The balance in stock purchase warrants is as follows: | |||||
Number of Warrants | Exercise Prices | ||||
Balance December 31, 2013 | 11,000,000 | $ | 0.15 | ||
Issued in connection with private placement | 10,200,000 | $ | 0.10-0.20 | ||
Balance December 31, 2014 and March 31, 2015 | 21,200,000 | $ | 0.10-0.20 | ||
These warrants expire as follows: | |||||
Shares | Exercise Price | Expiration Date | |||
11,000,000 | $0.15 | 31-May-15 | |||
3,000,000 | $0.15 | 4-Mar-17 | |||
6,000,000 | $0.20 | 11-Aug-17 | |||
1,200,000 | $0.10 | 11-Aug-19 | |||
11_Stock_Options
11. Stock Options | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes | |||||
11. Stock Options | 11. Stock Options | ||||
In April 2014, the Company established a stock option plan to authorize the granting of stock options to officers and employees. Upon exercise of the options shares are issued from the available authorized shares of the Company. | |||||
On April 30, 2014, 2,250,000 options were issued to management, 750,000 options vested immediately and the remaining 1,500,000 vested at a rate of 750,000 each year on the anniversary for 2 additional years, and they expire after 3 years. Each option allows the holder to purchase one share of the Company’s stock at $0.10 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of three years, a risk free rate of 0.87%, and expected volatility of 161.30% compensation cost of $173,844 is associated with these options. Of this $115,896 was recorded as a general and administrative expense in 2014. The remaining compensation cost of $57,948 is expected to be recognized over the next 1.5 years. All options expire on April 30 three years after their vest date. | |||||
On December 31, 2014, 500,000 options which vested immediately and expire after two years were issued to R Patrick Highsmith in connection with his hiring as the Company’s President and CEO. Each option allows the holder to purchase one share of the Company’s stock at $0.11 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of two years, a risk free rate of 0.49%, and expected volatility of 158.10% compensation cost of $36,250 is associated with these options and was recorded as a general and administrative expense in 2014. | |||||
On December 12, 2014, 1,500,000 options were issued to management, 750,000 options vested immediately and the remaining 750,000 vested after one year. The options expire after 5 years. Each option allows the holder to purchase one share of the Company’s stock at $0.15 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of five years, a risk free rate of 1.65%, and expected volatility of 150.60%, a compensation cost of $116,153 is associated with these options. Of this $49,780 was recorded as a general and administrative expense in 2014. The remaining compensation cost of $66,373 is being recognized in 2015, including $16,593, which was recognized in the first quarter. All options expire on December 12, 2019. On December 12, 2014 an additional 250,000 options were issued to past President and CEO R. Patrick Highsmith with a vesting date of December 2015. As part of the resignation and release agreement those options are no longer valid. | |||||
Number of Options | Exercise Prices | ||||
Balance January 1, 2014 | 0 | 0 | |||
Issued | 4,250,000 | $0.10-0.15 | |||
Outstanding December 31, 2014 | 4,250,000 | $0.10-0.15 | |||
Outstanding March 31, 2015 | 4,250,000 | $0.10-0.15 | |||
Exercisable at March 31, 2015 | 2,000,000 | $0.10-0.15 | |||
Outstanding options had no intrinsic value at March 31, 2014. | |||||
12_Gfh_Company
12. Gf&h Company | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Notes | ||||
12. Gf&h Company | 12. GF&H Company | |||
On July 14, 2014, the Company purchased of two thirds of the issued and outstanding common shares of GF&H Company (“GF&H”). NJMC acquired an interest in GF&H to further its land holdings in the area of its Golden Chest Property. | ||||
This transaction was accounted for as a business combination. The Company acquired two thirds of the issued and outstanding common shares of GF&H for $100,000 in cash. GF&H’s sole asset was 347 acres of land near Murray, Idaho, it had no liabilities. | ||||
A summary of the purchase is as follows: | ||||
New Jersey Mining | Non-controlling | |||
Company | Interest | |||
Consideration | -66.67% | -33.33% | Total | |
Cash | $100,000 | $100,000 | ||
Fair value of non-controlling interest | $50,000 | $ 50,000 | ||
$100,000 | $50,000 | $150,000 | ||
Assets acquired | ||||
Land and mineral interest | $150,000 | |||
The consolidated statement of operations of the Company for the quarter ended March 31, 2015 includes expenses incurred by GF&H of $59 and no revenue. GF&H has had minimal operating activity over the past several years. | ||||
The unaudited pro forma financial information below represents the combined results of the Company’s operations as if the GF&H acquisition had occurred at the beginning of the period presented. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have occurred if the transaction had taken place at the beginning of the period presented, nor is it indicative of future operating results. The amounts presented for the quarter ended March 31, 2014 represent the actual results for the period. | ||||
31-Mar-14 | ||||
Revenue: | $ | 76 | ||
Operating expenses | -268,432 | |||
Net loss from continuing operations | -268,356 | |||
Net loss per common share, basic and diluted | Nil | |||
13_Subsequent_Events
13. Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
13. Subsequent Events | 13. Subsequent Events |
On May 4, 2015, Patrick Highsmith, President and Chief Executive Officer of the Company, tendered his resignation as the Company's President and Chief Executive Officer, effective immediately. Simultaneously therewith, Mr. Highsmith tendered his resignation as a member of the Board of Directors of the Company, also effective immediately. | |
Subsequently, on May 5, 2015, the Board of Directors accepted the resignation of Mr. Highsmith as Chief Executive Officer, President and Director. The Company and Mr. Highsmith entered into a Resignation and Release agreement with Patrick Highsmith, effective as of May 1, 2015. Pursuant to the Agreement, the Company agreed to pay Mr. Highsmith his base salary through the end of May, provide his medical benefits for the months of May and June, and provide him with the previously vested stock options. The agreement included a mutual release of claims. | |
On May 5, 2015, the Board of Directors of the Company reappointed Mr. Delbert Steiner (70) as the Company’s Chief Executive Officer, and reappointed Mr. John Swallow (48) as the Company’s President. Mr. Steiner and Mr. Swallow also currently serve on the Company’s Board of Directors and their compensation arraignment with the Company was unchanged. The Company will recognize any general and administrative expenses related to these events in the second quarter of 2015. | |
1_The_Company_and_Significant_1
1. The Company and Significant Accounting Policies: Use of Estimates, Policy (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Policies | |
Use of Estimates, Policy | The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations. Operating results for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2015. |
1_The_Company_and_Significant_2
1. The Company and Significant Accounting Policies: Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Policies | |
Principles of Consolidation | Principles of Consolidation |
At March 31, 2015, the consolidated financial statements include the accounts of the Company, the accounts of our majority owned New Jersey Mill Joint Venture, and the accounts of GF&H as of July 14, 2014, an entity in which New Jersey Mining has two thirds of the ownership. Intercompany items and transactions between companies included in the consolidation are eliminated. |
1_The_Company_and_Significant_3
1. The Company and Significant Accounting Policies: Revenue Recognition (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Policies | |
Revenue Recognition | Revenue Recognition |
Revenue is recognized when title and risk of ownership of metals or metal bearing concentrate have passed and collection is reasonably assured. Revenue from the sale of metals may be subject to adjustment upon final settlement of estimated metal prices, weights and assays, and are recorded as adjustments to revenue in the period of final settlement of prices, weights and assays; such adjustments are typically not material in relation to the initial invoice amounts. Revenue received from drilling and exploration contracts with third parties is recognized when the contract has been established, the services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Income received as the operator of the Company’s joint ventures is recognized in the months during which those operations occur. Revenue received from engineering services provided is recognized when services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Revenues from mill operations and custom milling are recognized in the period in which the milling is performed and collection of payment is deemed probable. |
1_The_Company_and_Significant_4
1. The Company and Significant Accounting Policies: Reclassifications (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Policies | |
Reclassifications | Reclassifications |
Certain prior period amounts have been reclassified to conform to the 2014 financial statement presentation. Reclassifications had no effect on net loss, stockholders’ equity, or cash flows as previously reported. |
4_Joint_Ventures_Schedule_of_p
4. Joint Ventures: Schedule of percentage ownership and method of accounting (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Tables/Schedules | |||||||
Schedule of percentage ownership and method of accounting | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
Joint Venture | % Ownership | Significant Influence? | Accounting Method | % Ownership | Significant Influence? | Accounting Method | |
New Jersey Mill Joint Venture(“NJMJV”) | 66% | Yes | Consolidated | 66% | Yes | Consolidated | |
Golden Chest LLC Joint Venture (“GC”) | 48% | No | Cost | 48% | No | Cost |
5_Noncontrolling_Interest_in_M1
5. Non-controlling Interest in Mill Jv: Changes in non controlling interest during period (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Tables/Schedules | |||
Changes in non controlling interest during period | |||
Balance December 31, 2014 | $ | 3,197,113 | |
Depreciation charges | -10,679 | ||
Balance March 31 2014 | $ | 3,186,433 |
7_Property_Plant_and_Equipment1
7. Property, Plant, and Equipment: Property, Plant and Equipment (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Tables/Schedules | |||||
Property, Plant and Equipment | |||||
31-Mar-15 | 31-Dec-14 | ||||
Mill land | $ | 225,289 | $ | 225,289 | |
Mill building | 536,193 | 536,193 | |||
Milling equipment | 4,005,623 | 4,001,771 | |||
4,767,105 | 4,763,253 | ||||
Less accumulated depreciation | -196,240 | -152,151 | |||
Total mill | 4,570,865 | 4,611,102 | |||
Building and equipment at cost | 252,348 | 252,348 | |||
Less accumulated depreciation | -221,756 | -216,926 | |||
Total building and equipment | 30,592 | 35,422 | |||
Land | 1,007,675 | 1,007,675 | |||
Total | $ | 5,609,132 | $ | 5,654,199 |
8_Mineral_Properties_Schedule_
8. Mineral Properties: Schedule of mineral properties (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Tables/Schedules | |||||
Schedule of mineral properties | |||||
31-Mar-15 | 31-Dec-14 | ||||
New Jersey | $ | 288,365 | $ | 288,365 | |
McKinley | 250,000 | 250,000 | |||
Silver Button/Roughwater | 25,500 | 25,500 | |||
Toboggan | 5,000 | 5,000 | |||
Less accumulated amortization | -11,407 | -11,407 | |||
Total | $ | 557,458 | $ | 557,458 |
9_Notes_Payable_Schedule_of_De
9. Notes Payable: Schedule of Debt (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Tables/Schedules | |||||
Schedule of Debt | |||||
At March 31, 2015 and December 31, 2014 notes payable are as follows | 31-Mar-15 | 31-Dec-14 | |||
Property with shop 36 month note payable, 4.91% interest rate payable monthly, remaining principal of note due in one payment at end of term, monthly payments of $474 | $ | 45,450 | $ | 46,337 | |
Property, 15 month note payable, 5% interest per annum, collateralized by property, one remaining payment of $175,000 | 175,000 | 175,000 | |||
Property 120 month note payable, 11.0% interest rate payable monthly, remaining principal of note due in one payment at end of term, collateralized by property, monthly payments of $1,122 | 106,909 | 107,336 | |||
Total notes payable | 327,359 | 328,673 | |||
Due within one year | 180,472 | 180,385 | |||
Due after one year | $ | 146,887 | $ | 148,288 |
10_Equity_Warrant_expiration_T
10. Equity: Warrant expiration (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Tables/Schedules | |||
Warrant expiration | |||
Shares | Exercise Price | Expiration Date | |
11,000,000 | $0.15 | 31-May-15 | |
3,000,000 | $0.15 | 4-Mar-17 | |
6,000,000 | $0.20 | 11-Aug-17 | |
1,200,000 | $0.10 | 11-Aug-19 |
11_Stock_Options_Schedule_of_S
11. Stock Options: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Tables/Schedules | |||||
Schedule of Stockholders' Equity Note, Warrants or Rights | |||||
Number of Options | Exercise Prices | ||||
Balance January 1, 2014 | 0 | 0 | |||
Issued | 4,250,000 | $0.10-0.15 | |||
Outstanding December 31, 2014 | 4,250,000 | $0.10-0.15 | |||
Outstanding March 31, 2015 | 4,250,000 | $0.10-0.15 | |||
Exercisable at March 31, 2015 | 2,000,000 | $0.10-0.15 |
12_Gfh_Company_Schedule_of_Bus
12. Gf&h Company: Schedule of Business Acquisitions, by Acquisition (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Tables/Schedules | ||||
Schedule of Business Acquisitions, by Acquisition | ||||
New Jersey Mining | Non-controlling | |||
Company | Interest | |||
Consideration | -66.67% | -33.33% | Total | |
Cash | $100,000 | $100,000 | ||
Fair value of non-controlling interest | $50,000 | $ 50,000 | ||
$100,000 | $50,000 | $150,000 | ||
Assets acquired | ||||
Land and mineral interest | $150,000 | |||
12_Gfh_Company_Business_Acquis
12. Gf&h Company: Business Acquisition, Pro Forma Information (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Tables/Schedules | ||||
Business Acquisition, Pro Forma Information | ||||
31-Mar-14 | ||||
Revenue: | $ | 76 | ||
Operating expenses | -268,432 | |||
Net loss from continuing operations | -268,356 | |||
Net loss per common share, basic and diluted | Nil |
1_The_Company_and_Significant_5
1. The Company and Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Details | |
Basis of Accounting | These unaudited interim consolidated financial statements have been prepared by the management of New Jersey Mining Company (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim consolidated financial statements have been included. |
2_Going_Concern_Details
2. Going Concern (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||||
Net loss | $279,527 | $268,356 | ||
Cash and cash equivalents | $27,347 | $733,091 | $336,525 | $636,127 |
3_Related_Parties_Details
3. Related Parties (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
Details | ||
Due to Affiliate | $171,007 | $207,017 |
4_Joint_Ventures_Schedule_of_p1
4. Joint Ventures: Schedule of percentage ownership and method of accounting (Details) | Mar. 31, 2015 | Dec. 31, 2014 |
Details | ||
Investment Owned, Percent of Net Assets | 66.00% | 66.00% |
investment owned percentage of net assets 2 | 48.00% |
4_Joint_Ventures_Details
4. Joint Ventures (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
Details | ||
Joint venture receivables, detail of accounts receivable | $37,554 | $72,696 |
5_Noncontrolling_Interest_in_M2
5. Non-controlling Interest in Mill Jv: Changes in non controlling interest during period (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Other Noncontrolling Interests | $3,186,433 | $3,197,113 |
Net loss attributable to non-controlling interests | ($10,679) |
6_Earnings_Per_Share_Details
6. Earnings Per Share (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Details | |
Warrants | 21,200,000 |
Stock options | 4,250,000 |
7_Property_Plant_and_Equipment2
7. Property, Plant, and Equipment: Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Details | ||
Mill land | $225,289 | $225,289 |
Mill building | 536,193 | 536,193 |
Milling equipment | 4,005,623 | 4,001,771 |
Mill Buildings and Improvements, Gross | 4,767,105 | 4,763,253 |
Mill buildings and improvements, accumulated depreciation | -196,240 | -152,151 |
Mill Buildings and Improvements, Net | 4,570,865 | 4,611,102 |
Buildings and Improvements, Gross | 252,348 | 252,348 |
Buildings and improvements, accumulated depreciation | -221,756 | -216,926 |
Buildings and improvements net | 30,592 | 35,422 |
Land | 1,007,675 | 1,007,675 |
Property, plant and equipment, net of accumulated depreciation | $5,609,132 | $5,654,199 |
8_Mineral_Properties_Schedule_1
8. Mineral Properties: Schedule of mineral properties (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Details | |||
Mineral Properties 1 | $288,365 | $288,365 | |
Mineral Properties 2 | 250,000 | 250,000 | |
Mineral Properties 3 | 25,500 | 25,500 | |
Mineral Properties 4 | 5,000 | 5,000 | |
Mineral properties amortization | -11,407 | -11,407 | |
Mineral properties net | $557,458 | $557,458 |
9_Notes_Payable_Schedule_of_De1
9. Notes Payable: Schedule of Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Details | ||
Note payable, property | $45,450 | $46,337 |
Note payable, property 2 | 175,000 | 175,000 |
Note payable, property | 106,909 | 107,336 |
Notes Payable | 327,359 | 328,673 |
Notes payable, short term | 180,472 | 180,385 |
Notes payable, long term | $146,887 | $148,288 |
10_Equity_Details
10. Equity (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Details | |||
Units issued price per unit | $0.15 | ||
Units Issued in connection with private placement | $3,000,000 | ||
Shares Issued in connection with private placement | 6,000,000 | ||
Warrants Issued in connection with private placement units | 3,000,000 | ||
Private placement net proceeds | 405,000 | ||
Class of Warrant or Right, Outstanding | 21,200,000 | 11,000,000 | |
Warrants Issued in connection with private placement | $10,200,000 |
10_Equity_Warrant_expiration_D
10. Equity: Warrant expiration (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Sep. 30, 2014 | |
Details | ||
Warrants Issued in connection with private placement | $11,000,000 | |
Exercise price, private placement warrants | $0.15 | |
Warrant Expiration Date | 31-May-15 | |
Warrants Issued in connection with private placement | 3,000,000 | |
Exercise price, private placement warrants | $0.15 | |
Warrant Expiration Date | 4-Mar-17 | |
Warrants Issued in connection with private placement | 6,000,000 | |
Exercise price, private placement warrants | $0.20 | |
Warrant Expiration Date | 11-Aug-17 | |
Warrants Issued in connection with private placement, broker | $1,200,000 | |
Exercise price, private placement warrants, Broker | $0.10 | |
Warrant Expiration Date Broker | 11-Aug-19 |
11_Stock_Options_Details
11. Stock Options (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Details | |
Stock options issued to management | 2,250,000 |
Stock options issued to management Value | $173,844 |
Stock options issued to management | 500,000 |
Stock options issued to officer value | 36,250 |
Stock options issued to management | 1,500,000 |
Stock options issued to management Value | $116,153 |
11_Stock_Options_Schedule_of_S1
11. Stock Options: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,250,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 4,250,000 |
12_Gfh_Company_Schedule_of_Bus1
12. Gf&h Company: Schedule of Business Acquisitions, by Acquisition (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Business Acquisition Cost of Acquired Entity Controlling Interest | 100,000 | |
Payments of Merger Related Costs, Financing Activities | $100,000 | |
Business Acquisition Cost of Acquired Entity Noncontrolling Interest | 50,000 | |
Business Acquisition Contribution from Noncontrolling Interest, Fair Value | 50,000 | |
Business Combination, Acquisition Related Costs | 150,000 | |
Business Acquisition, Purchase Price Allocation, Land | $150,000 |
12_Gfh_Company_Details
12. Gf&h Company (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Details | |
Subsidiary expenses, detail | $59 |
12_Gfh_Company_Business_Acquis1
12. Gf&h Company: Business Acquisition, Pro Forma Information (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Details | |
Business Acquisition, Pro Forma Revenue | $76 |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations before Changes in Accounting and Extraordinary Items, Net of Tax, Per Share, Diluted | ($268,432) |
Business Acquisition, Pro Forma Net Income (Loss) | ($268,356) |
Basic Earnings Per Share, Pro Forma | $0 |