Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 01, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | New Jersey Mining Company | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Trading Symbol | njmc | |
Amendment Flag | false | |
Entity Central Index Key | 1,030,192 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 91,760,148 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
New Jersey Mining Company Conso
New Jersey Mining Company Consolidated Balance Sheets (Interim period unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 140,296 | $ 336,525 | |
Joint venture receivables | 65,804 | 55,021 | |
Note receivable | 58,386 | 58,386 | |
Milling receivables | 299,488 | 117,615 | |
Other current assets | 10,629 | 22,495 | |
Total current assets | 574,603 | 590,042 | |
Noncurrent assets | |||
Property, plant and equipment, net of accumulated depreciation | 5,753,355 | 5,654,199 | |
Mineral properties, net of accumulated amortization | 557,458 | 557,458 | |
Deposit on equipment | 12,480 | ||
Total noncurrent assets | 6,310,813 | 6,224,137 | |
Total assets | 6,885,416 | 6,814,179 | |
Current liabilities: | |||
Accounts payable | 178,953 | 77,913 | |
Line of credit | 38,497 | ||
Accrued payroll and related payroll expenses | 45,117 | 49,960 | |
Interest payable | 8,021 | ||
Note payable related party, current | 41,806 | 39,384 | |
Milling advance | 150,000 | 200,000 | |
Notes payable, current | 247,021 | 180,385 | |
Total current liabilities | 709,415 | 547,642 | |
Noncurrent liabilities | |||
Asset retirement obligation | 26,011 | 23,366 | |
Note payable related party | 119,506 | 141,033 | |
Notes payable | 168,055 | 148,288 | |
Total long term liabilities | 313,572 | 312,687 | |
Total liabilities | 1,022,987 | 860,329 | |
Commitments | [1] | 0 | 0 |
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 | 13,489,015 | 13,442,395 | |
Accumulated deficit | (10,838,831) | (10,735,658) | |
Total New Jersey Mining Company stockholders' equity | 2,650,184 | 2,706,737 | |
Non-controlling interest in New Jersey Mill Joint Venture and GF and H Company | 3,212,245 | 3,247,113 | |
Total stockholders' equity | 5,862,429 | 5,953,850 | |
Total liabilities and stockholders' equity | $ 6,885,416 | $ 6,814,179 | |
[1] | Notes 3 and 9 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
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 Cons4
New Jersey Mining Company Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Joint venture management fee income | $ 63 | $ 139 | ||
Milling income | $ 872,250 | $ 1,263,370 | ||
Total revenue | 872,250 | 63 | 1,263,370 | 139 |
Costs and expenses: | ||||
Milling | 431,519 | 38,334 | 770,290 | 51,537 |
Exploration | 46,069 | 75,967 | 93,126 | 160,535 |
Depreciation and amortization | 53,267 | 15,508 | 102,187 | 30,034 |
Management | 80,118 | 90,184 | 136,657 | 112,941 |
Professional services | 58,882 | 44,028 | 119,658 | 125,890 |
General and administrative expenses | 59,963 | 37,951 | 168,331 | 89,857 |
Total operating expenses | 729,818 | 301,972 | 1,390,249 | 570,794 |
Operating income (loss) | 142,432 | (301,909) | (126,879) | (570,655) |
Other (income) expense: | ||||
Royalties and other income | (7,923) | (19,809) | ||
Timber expense | 2,175 | 2,225 | ||
Interest income | (1,229) | (151) | (2,700) | (278) |
Interest expense | 810 | 11,638 | 12,430 | |
Total other (income) expense | 946 | (7,264) | 11,163 | (7,657) |
Income tax (provision) benefit | 0 | 0 | 0 | 0 |
Net income (loss) | 141,486 | (294,645) | (138,042) | (562,998) |
Net loss attributable to non-controlling interest | 24,187 | 34,867 | ||
Net income (loss) attributable to New Jersey Mining Company | 165,673 | (294,645) | (103,175) | (562,998) |
Other comprehensive income (loss): | ||||
Net income (loss) | 141,486 | (294,645) | (138,042) | (562,998) |
Unrealized gain (loss) on marketable equity security | 4,836 | 4,836 | ||
Comprehensive loss | 141,486 | (289,809) | (138,142) | (558,162) |
Comprehensive loss attributable to non-controlling interest | 24,187 | 34,867 | ||
Comprehensive income (loss) attributable to New Jersey Mining Company | $ 165,673 | $ (289,809) | $ (103,175) | $ (558,162) |
Net loss per common share-basic and diluted | $ 0 | $ 0 | $ 0 | $ 0.01 |
Weighted average common shares outstanding-basic and diluted | 91,760,148 | 79,760,148 | 91,760,148 | 77,771,198 |
New Jersey Mining Company Cons5
New Jersey Mining Company Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (138,042) | $ (562,998) |
Adjustments to reconcile net loss to net cash (used) by operating activities: | ||
Depreciation and amortization | 102,187 | 30,034 |
Accretion of asset retirement obligation | 2,645 | 576 |
Stock based compensation | 46,620 | 57,750 |
Change in: | ||
Joint venture receivables | (10,783) | (42,073) |
Other current assets | 11,866 | 3,640 |
Accounts payable | 101,040 | (4,999) |
Interest payable | 8,021 | |
Accrued payroll and related payroll expense | (4,843) | 5,255 |
Milling advance | (50,000) | |
Net cash (used) by operating activities | (113,162) | (512,815) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (96,543) | (270,769) |
Net cash (used) by investing activities | (96,543) | (270,769) |
Cash flows from financing activities: | ||
Sales of common stock and warrants, net of issuance costs | 405,000 | |
Borrowings under line of credit | 38,497 | |
Principal payments on notes payable | (5,917) | (27,575) |
Principal payments on note payable, related party, net | (19,104) | (15,054) |
Net cash provided (used) by financing activities | 13,476 | 362,371 |
Net decrease in cash and cash equivalents | (196,229) | (421,213) |
Cash and cash equivalents, beginning of period | 336,525 | 636,127 |
Cash and cash equivalents, end of period | 140,296 | 214,914 |
Supplemental disclosure of cash flow information | ||
Interest paid in cash, net of amount capitalized | 11,638 | 12,430 |
Non-cash investing and financing activities | ||
Capital lease paid by non-controlling interest | $ 17,340 | |
Debt for equipment purchase | $ 92,320 |
1. The Company and Significant
1. The Company and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 Companys management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim consolidated financial statements have been included. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations. Operating results for the three and six month periods ended June 30, 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 Companys audited financial statements for the year ended December 31, 2014 as filed with the Securities and Exchange Commission. Principles of Consolidation At June 30, 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 and 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 Companys 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 completed, concentrates are shipped, and collection of payment is deemed probable. Reclassifications Certain prior period amounts have been reclassified to conform to the 2015 financial statement presentation. Reclassifications had no effect on net loss, stockholders equity, or cash flows as previously reported. |
2. Going Concern
2. Going Concern | 6 Months Ended |
Jun. 30, 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 $103,175 in the first half of 2015 as well as a negative working capital balance of $134,812 at June 30, 2015. These factors raise substantial doubt about the Companys ability to continue as a going concern. However, the Company has put the New Jersey Mill into production and is processing ore from the Golden Chest Mine. The Company has begun to generate revenue from increased rates of milling these ores. 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 | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
3. Related Parties | 3. Related Party Transactions In August 2012, the Company entered into a note by Mine Systems Design (MSD), a company controlled by our former Chief Executive Officer, to purchase property for $223,806 at 12% interest to be paid in 60 monthly payments. At June 30, 2015 and 2014, the remaining amount due was $161,312 and $198,414, respectively. In the first six months of 2015 and 2014 $10,353 and $12,503, respectively was paid in interest. |
4. Joint Ventures
4. Joint Ventures | 6 Months Ended |
Jun. 30, 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 June 30, 2015 and December 31, 2014, the Companys percentage ownership and method of accounting for each joint venture is as follows: June 30, 2015 December 31, 2014 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method New Jersey Mill Joint Venture(NJMJV) 67% 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) 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 June 30, 2015 and 2014, an account receivable existed with Crescent for $44,629 and $83,276, respectively, for monthly operating costs as defined in the JV agreement. Golden Chest LLC Joint Venture On September 3, 2013 the Golden Chest LLC Joint Venture (GCJV) 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 GCJV, 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 GCJV 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 GCJV which it also has done. Additionally, Juniper will pay a 2% net smelter royalty to GCJV 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., (Gold Hill) an affiliated company. The lease has a term of 39 months. Gold Hill began shipping ore in the 4 th During the six months ended June 30, 2015, the mill processed 26,403 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 the Company on November 7, 2014, at the beginning of the rampup phase. These funds will be deducted from milling receipts over a six month period once the ramp-up period is completed. Payment started in May 2015 and the remaining advance payable to Gold Hill is $150,000. |
5. Non-controlling Interests
5. Non-controlling Interests | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
5. Non-controlling Interests | 5. Non-Controlling Interests Crescents 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 June 30, 2015: Balance December 31, 2014 $ 3,197,113 Depreciation charges (34,867) Balance June 30 2015 $ 3,162,245 The non-controlling interest in GF and H represents the shareholders investment in the Joint Venture less any losses associated with their share. The non-controlling interest in GF and H was $50,000 at December 31, 2014 and June 30, 2015. |
6. Earnings Per Share
6. Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
6. Earnings Per Share | 6. Earnings per Share For the 3 and six month periods ending June 30, 2015 and 2014, the effect of the Companys potential issuance of shares from the exercise of 10,200,000 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 Equipme
7. Property, Plant, and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
7. Property, Plant, and Equipment | 7. Property, Plant, and Equipment Property, plant and equipment at June 30, 2015 and December 31, 2014, consisted of the following: June 30, 2015 December 31, 2014 Mill land $ 225,289 $ 225,289 Mill building 536,193 536,193 Milling equipment 4,203,114 4,001,771 4,964,296 4,763,253 Less accumulated depreciation (244,678) (152,151) Total mill 4,719,918 4,611,102 Building and equipment at cost 252,348 252,348 Less accumulated depreciation (226,586) (216,926) Total building and equipment 25,762 35,422 Land 1,007,675 1,007,675 Total $ 5,753,355 $ 5,654,199 |
8. Mineral Properties
8. Mineral Properties | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
8. Mineral Properties | 8. Mineral Properties Mineral properties at June 30, 2015 and December 31, 2014 consisted of the following: June 30, 2015 December 31, 2014 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 | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
9. Notes Payable | 9. Notes Payable At June 30, 2015 and December 31, 2014 notes payable are as follows June 30, 2015 December 31, 2014 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 in June 2016, monthly payments of $474 $ 44,552 $ 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 in March 2021, collateralized by property, monthly payments of $1,122 106,472 107,336 Tailings pump, 35 month note payable, 17.5% interest rate payable monthly, monthly payments of $3,268, collateralized by equipment 89,052 Total notes payable $ 415,076 $ 328,673 Principal payments on notes payable are due as follows as of June 30, 2015 June 30, 2015 December 31, 2014 Due within one year $ 247,021 $ 180,385 Due in year two 32,552 44,704 Due in year three 35,324 2,207 Due in year four 2,601 2,462 Thereafter 97,578 98,915 Total notes payable $ 415,076 $ 328,673 |
10. Line of Credit
10. Line of Credit | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
10. Line of Credit | 10. Line of Credit In the second quarter of 2015 existing revolving lines of credit with US Bank were utilized. The lines of credit currently have variable interest rates of 7.25% and 21.9%. Of the total $43,000 available $38,497 was being utilized at June 30, 2015 |
11. Equity
11. Equity | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
11. Equity | 11. 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 Companys common stock and one purchase warrant, each warrant exercisable for one share of the Companys 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 have been issued in the first six months of 2015. S tock Purchase Warrants Outstanding No transactions in common stock purchase warrants occurred during the period ended June 30, 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 21,200,000 $ 0.10-0.20 Expired May 31, 2015 11,000,000 0.15 Balance June 30, 2015 10,200,000 0.10-0.20 These warrants expire as follows: Shares Exercise Price Expiration Date 3,000,000 $0.15 March 4, 2017 6,000,000 $0.20 August 11, 2017 1,200,000 $0.10 August 11, 2019 |
12. Stock Options
12. Stock Options | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
12. Stock Options | 12. 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. Each option allows the holder to purchase one share of the Companys 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 the options. Of this, $115,896 was recorded as a general and administrative expense in 2014 and $21,731 was recorded in the first half of 2015. At June 30, 2015 unrecognized compensation cost related to these options was $36,218, which is expected to be recognized over the next year. 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 Companys President and CEO. Each option allows the holder to purchase one share of the Companys 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%, a 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 Companys 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 $99,558 is associated with these options. Of this $49,780 was recorded as a general and administrative expense in 2014. The remaining compensation cost of $49,780 is being recognized in 2015, including $24,890, which was recognized as of June 30, 2015. 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 4,500,000 $0.10-0.15 Outstanding December 31, 2014 4,500,000 $0.10-0.15 Forfeited (250,000) Outstanding June 30, 2015 4,250,000 $0.10-0.15 Exercisable at June 30, 2015 2,937,500 $0.10-0.15 Outstanding options had no intrinsic value at June 30, 2014. |
13. Gf and H Company
13. Gf and H Company | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
13. Gf and H Company | 13. GF and H Company On July 14, 2014, the Company purchased of two thirds of the issued and outstanding common shares of GF and H Company (GF and H). NJMC acquired an interest in GF and 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 and H for $100,000 in cash. GF and Hs 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 Company Non-controlling Interest Consideration (66 2/3%) (33 1/3%) 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 June 30, 2015 includes expenses incurred by GF and H of $2,237 and no revenue. GF and H has had minimal operating activity over the past several years. The unaudited pro forma financial information below represents the combined results of the Companys operations as if June 30, 2014 3 months 6 months Revenue $ 63 $ 139 Operating expenses (264,708) (563,137) Net loss from continuing operations (264,645) (562,998) Net loss per common share, basic and diluted 0.05 0.01 |
1. The Company and Significan19
1. The Company and Significant Accounting Policies: Use of Estimates, Policy (Policies) | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2015. |
1. The Company and Significan20
1. The Company and Significant Accounting Policies: Principles of Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Principles of Consolidation | Principles of Consolidation At June 30, 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 and 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 Significan21
1. The Company and Significant Accounting Policies: Revenue Recognition (Policies) | 6 Months Ended |
Jun. 30, 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 Companys 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 completed, concentrates are shipped, and collection of payment is deemed probable. |
1. The Company and Significan22
1. The Company and Significant Accounting Policies: Reclassifications (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the 2015 financial statement presentation. Reclassifications had no effect on net loss, stockholders equity, or cash flows as previously reported. |
4. Joint Ventures_ Schedule of
4. Joint Ventures: Schedule of percentage ownership and method of accounting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of percentage ownership and method of accounting | June 30, 2015 December 31, 2014 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method New Jersey Mill Joint Venture(NJMJV) 67% Yes Consolidated 66% Yes Consolidated Golden Chest LLC Joint Venture (GC) 48% No Cost 48% No Cost |
5. Non-controlling Interests_ C
5. Non-controlling Interests: Changes in non controlling interest during period (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Changes in non controlling interest during period | Balance December 31, 2014 $ 3,197,113 Depreciation charges (34,867) Balance June 30 2015 $ 3,162,245 |
7. Property, Plant, and Equip25
7. Property, Plant, and Equipment: Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Property, Plant and Equipment | June 30, 2015 December 31, 2014 Mill land $ 225,289 $ 225,289 Mill building 536,193 536,193 Milling equipment 4,203,114 4,001,771 4,964,296 4,763,253 Less accumulated depreciation (244,678) (152,151) Total mill 4,719,918 4,611,102 Building and equipment at cost 252,348 252,348 Less accumulated depreciation (226,586) (216,926) Total building and equipment 25,762 35,422 Land 1,007,675 1,007,675 Total $ 5,753,355 $ 5,654,199 |
8. Mineral Properties_ Schedule
8. Mineral Properties: Schedule of mineral properties (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of mineral properties | June 30, 2015 December 31, 2014 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 D
9. Notes Payable: Schedule of Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Debt | At June 30, 2015 and December 31, 2014 notes payable are as follows June 30, 2015 December 31, 2014 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 in June 2016, monthly payments of $474 $ 44,552 $ 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 in March 2021, collateralized by property, monthly payments of $1,122 106,472 107,336 Tailings pump, 35 month note payable, 17.5% interest rate payable monthly, monthly payments of $3,268, collateralized by equipment 89,052 Total notes payable $ 415,076 $ 328,673 |
9. Notes Payable_ Schedule of M
9. Notes Payable: Schedule of Maturities of Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Maturities of Long-term Debt | Principal payments on notes payable are due as follows as of June 30, 2015 June 30, 2015 December 31, 2014 Due within one year $ 247,021 $ 180,385 Due in year two 32,552 44,704 Due in year three 35,324 2,207 Due in year four 2,601 2,462 Thereafter 97,578 98,915 Total notes payable $ 415,076 $ 328,673 |
11. Equity_ Schedule of Stockho
11. Equity: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Stockholders' Equity Note, Warrants or Rights | 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 21,200,000 $ 0.10-0.20 Expired May 31, 2015 11,000,000 0.15 Balance June 30, 2015 10,200,000 0.10-0.20 |
11. Equity_ Warrant expiration
11. Equity: Warrant expiration (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Warrant expiration | Shares Exercise Price Expiration Date 3,000,000 $0.15 March 4, 2017 6,000,000 $0.20 August 11, 2017 1,200,000 $0.10 August 11, 2019 |
12. Stock Options_ Schedule of
12. Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Stock Options, Activity | Number of Options Exercise Prices Balance January 1, 2014 0 0 Issued 4,500,000 $0.10-0.15 Outstanding December 31, 2014 4,500,000 $0.10-0.15 Forfeited (250,000) Outstanding June 30, 2015 4,250,000 $0.10-0.15 Exercisable at June 30, 2015 2,937,500 $0.10-0.15 |
13. Gf and H Company_ Schedule
13. Gf and H Company: Schedule of Business Acquisitions, by Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Business Acquisitions, by Acquisition | New Jersey Mining Company Non-controlling Interest Consideration (66 2/3%) (33 1/3%) 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 |
13. Gf and H Company_ Business
13. Gf and H Company: Business Acquisition, Pro Forma Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Business Acquisition, Pro Forma Information | June 30, 2014 3 months 6 months Revenue $ 63 $ 139 Operating expenses (264,708) (563,137) Net loss from continuing operations (264,645) (562,998) Net loss per common share, basic and diluted 0.05 0.01 |
1. The Company and Significan34
1. The Company and Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 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) - Jun. 30, 2015 - USD ($) | Total |
Details | |
Comprehensive income (loss) attributable parent | $ 103,175 |
Working capital balance | $ 134,812 |
3. Related Parties (Details)
3. Related Parties (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||
Due to Affiliate | $ 161,312 | $ 198,414 |
Interest paid affiliate | $ 10,353 | $ 12,503 |
4. Joint Ventures_ Schedule o37
4. Joint Ventures: Schedule of percentage ownership and method of accounting (Details) | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Investment Owned, Percent of Net Assets | 67.00% | 66.00% |
Investment owned percentage of net assets 2 | 48.00% | 48.00% |
4. Joint Ventures (Details)
4. Joint Ventures (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Nov. 07, 2014 | Jun. 30, 2014 | |
Details | |||
Joint venture receivables, detail of accounts receivable | $ 44,629 | $ 83,276 | |
Ore processed | 26,403 | ||
Advances to Affiliate | $ 200,000 |
5. Non-controlling Interests_39
5. Non-controlling Interests: Changes in non controlling interest during period (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Details | |||
Other Noncontrolling Interests | $ 3,162,245 | $ 3,162,245 | $ 3,197,113 |
Net loss attributable to non-controlling interest | $ (24,187) | $ (34,867) |
6. Earnings Per Share (Details)
6. Earnings Per Share (Details) | 6 Months Ended |
Jun. 30, 2015shares | |
Details | |
Warrants | 10,200,000 |
Stock options | 4,250,000 |
7. Property, Plant, and Equip41
7. Property, Plant, and Equipment: Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Mill land | $ 225,289 | $ 225,289 |
Mill building | 536,193 | 536,193 |
Milling equipment | 4,203,114 | 4,001,771 |
Mill buildings and improvements, accumulated depreciation | (244,678) | (152,151) |
Mill Buildings and Improvements, Net | 4,719,918 | 4,611,102 |
Buildings and Improvements, Gross | 252,348 | 252,348 |
Buildings and improvements, accumulated depreciation | (226,586) | (216,926) |
Buildings and improvements net | 25,762 | 35,422 |
Land | 1,007,675 | 1,007,675 |
Property, plant and equipment, net of accumulated depreciation | $ 5,753,355 | $ 5,654,199 |
8. Mineral Properties_ Schedu42
8. Mineral Properties: Schedule of mineral properties (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | 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 of43
9. Notes Payable: Schedule of Debt (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Note payable, property | $ 44,552 | $ 46,337 |
Note payable, property 2 | 175,000 | 175,000 |
Note payable, property | 106,472 | 107,336 |
Note payable, equipment | 89,052 | |
Long-term Debt | $ 415,076 | $ 328,673 |
9. Notes Payable_ Schedule of44
9. Notes Payable: Schedule of Maturities of Long-term Debt (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Future minimum principal payments on notes payable | $ 247,021 | $ 180,385 |
Future minimum principal payments on notes payable year two | 32,552 | 44,704 |
Future minimum principal payments on notes payable year three | 35,324 | 2,207 |
Future minimum principal payments on notes payable year four | 2,601 | 2,462 |
Future minimum principal payments on notes payable subsequent | 97,578 | 98,915 |
Long-term Debt | $ 415,076 | $ 328,673 |
10. Line of Credit (Details)
10. Line of Credit (Details) - Jun. 30, 2015 - USD ($) | Total |
Details | |
Line of Credit Facility, Interest Rate During Period | 7.25% |
Line of Credit Facility Interest Rate During Period 2 | 21.90% |
Line of Credit Facility, Amount Outstanding | $ 43,000 |
Line of Credit Facility, Amount Outstanding | $ 38,497 |
11. Equity (Details)
11. Equity (Details) - Mar. 31, 2014 - USD ($) | Total |
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 |
11. Equity_ Schedule of Stock47
11. Equity: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | |||
Class of Warrant or Right, Outstanding | 10,200,000 | 21,200,000 | 11,000,000 |
Warrants Issued in connection with private placement | $ 10,200,000 | ||
Warrants Issued in connection with private placement expired | $ 11,000,000 |
11. Equity_ Warrant expiratio48
11. Equity: Warrant expiration (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
Details | ||
Warrants Issued in connection with private placement | $ 3,000,000 | |
Exercise price, private placement warrants | $ 0.15 | |
Warrant Expiration Date | March 4, 2017 | |
Warrants Issued in connection with private placement | $ 6,000,000 | |
Exercise price, private placement warrants | $ 0.20 | |
Warrant Expiration Date | August 11, 2017 | |
Warrants Issued in connection with private placement, broker | $ 1,200,000 | |
Exercise price, private placement warrants, Broker | $ 0.10 | |
Warrant Expiration Date Broker | August 11, 2019 |
12. Stock Options (Details)
12. Stock Options (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Details | ||
Stock options issued to management | 2,250,000 | |
Stock options issued to management 1 price per share | $ 0.10 | |
Stock options issued to management Value | $ 173,844 | |
Stock options issued to management Value General and Administrative Expenses | $ 21,731 | $ 115,896 |
Stock options issued to management Value Unrecognized Compensation Cost | 36,218 | |
Stock options issued to management | 500,000 | |
Stock options issued to management price per share | $ 0.11 | |
Fair Value Assumptions, Risk Free Interest Rate | 0.49% | |
Fair Value Assumptions, Expected Volatility Rate | 158.10% | |
Stock options issued to management compensation cost | $ 36,250 | |
Stock options issued to management | 1,500,000 | |
Stock options issued to management 2 price per share | $ 0.15 | |
Stock options issued to management additional compensation cost | $ 99,558 | |
Stock options issued to management General and Administrative Expenses | $ 24,890 | $ 49,780 |
12. Stock Options_ Schedule o50
12. Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Details) - shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,250,000 | 4,500,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 4,500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (250,000) | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 2,937,500 |
13. Gf and H Company_ Schedul51
13. Gf and H Company: Schedule of Business Acquisitions, by Acquisition (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
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 |
13. Gf and H Company (Details)
13. Gf and H Company (Details) | 3 Months Ended |
Jun. 30, 2015USD ($) | |
Details | |
Subsidiary expenses, detail | $ 2,237 |
13. Gf and H Company_ Busines53
13. Gf and H Company: Business Acquisition, Pro Forma Information (Details) - Jun. 30, 2015 - USD ($) | Total | Total |
Details | ||
Business Acquisition, Pro Forma Revenue | $ 63 | $ 139 |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations before Changes in Accounting and Extraordinary Items, Net of Tax, Per Share, Diluted | $ (264,708) | $ (563,137) |
Business Acquisition, Pro Forma Net Income (Loss) | $ (264,645) | $ (562,998) |
Basic Earnings Per Share, Pro Forma | $ 0.05 | $ 0.01 |