Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | New Jersey Mining Company | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
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 | 94,760,148 | |
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 | 2,016 | |
Document Fiscal Period Focus | Q2 |
New Jersey Mining Company Conso
New Jersey Mining Company Consolidated Balance Sheets (Interim period unaudited) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 11,035 | $ 62,275 | |
Joint venture receivables | 5,391 | 3,109 | |
Note receivable | 58,386 | 58,386 | |
Milling receivables | 31,450 | 40,577 | |
Other current assets | 42,295 | 40,350 | |
Total current assets | 148,557 | 204,697 | |
Property, plant and equipment, net of accumulated depreciation | 5,751,871 | 5,698,831 | |
Mineral properties, net of accumulated amortization | 1,986,740 | 1,907,089 | |
Investment in joint venture | 435,000 | ||
Deposit on equipment | 13,982 | ||
Total assets | 8,322,168 | 7,824,599 | |
Current liabilities: | |||
Accounts payable | 176,312 | 58,267 | |
Line of credit | 31,865 | ||
Accrued payroll and related payroll expenses | 1,162 | 14,513 | |
Notes and interest payable related parties, current portion | 87,233 | 88,114 | |
Notes payable, current portion, net of discount | 613,131 | 488,435 | |
Total current liabilities | 909,703 | 649,329 | |
Asset retirement obligation | 31,302 | 28,656 | |
Notes and interest payable related parties, long term | 1,093,912 | 598,127 | |
Notes payable, long term, net of discount | 488,642 | 731,940 | |
Total long term liabilities | 1,613,856 | 1,358,723 | |
Total liabilities | 2,523,559 | 2,008,052 | |
Commitments | [1] | 0 | 0 |
Stockholders' equity: | |||
Common stock, no par value, 200,000,000 shares authorized; December 31, 2015-91,760,148 shares and June 30, 2016-94,760,148 shares issued and outstanding | 13,842,778 | 13,590,739 | |
Accumulated deficit | (11,269,466) | (10,981,432) | |
Total New Jersey Mining Company stockholders' equity | 2,573,312 | 2,609,307 | |
Non-controlling interests | 3,225,297 | 3,207,240 | |
Total stockholders' equity | 5,798,609 | 5,816,547 | |
Total liabilities and stockholders' equity | $ 8,322,168 | $ 7,824,599 | |
[1] | Notes 3 and 9 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
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 | 94,760,148 | 91,760,148 |
Common Stock, Shares Outstanding | 94,760,148 | 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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue: | ||||
Gold Sales | $ 48,312 | $ 77,663 | ||
Milling income | $ 872,250 | 14,614 | $ 1,263,370 | |
Total revenue | 48,312 | 872,250 | 92,277 | 1,263,370 |
Costs and expenses: | ||||
Milling | 43,337 | 431,519 | 95,187 | 770,290 |
Exploration | 38,634 | 46,069 | 80,057 | 93,126 |
Depreciation and amortization | 1,116 | 53,267 | 3,214 | 102,187 |
Management | 21,102 | 80,118 | 56,151 | 136,657 |
Professional services | 4,340 | 58,882 | 55,026 | 119,658 |
General and administrative expenses | 25,718 | 59,963 | 56,842 | 168,331 |
Total operating expenses | 134,247 | 729,818 | 346,477 | 1,390,249 |
Operating income (loss) | (85,935) | 142,432 | (254,200) | (126,879) |
Other (income) expense: | ||||
Royalties and other income | 0 | 0 | (200) | 0 |
Timber income | (42,011) | (42,011) | ||
Timber expense | 2,175 | 500 | 2,225 | |
Interest income | (1,325) | (1,229) | (3,049) | (2,700) |
Interest expense | 28,868 | 40,077 | 11,638 | |
Amortization of discount | 12,454 | 24,908 | ||
Total other (income) expense | (2,014) | 946 | 20,225 | 11,163 |
Income tax (provision) benefit | 0 | 0 | 0 | 0 |
Net income (loss) | (83,921) | 141,486 | (274,425) | (138,042) |
Net income (loss) attributable to non-controlling interest | 13,633 | (24,187) | 13,609 | (34,867) |
Net income (loss) attributable to New Jersey Mining Company | $ (97,554) | $ 165,673 | $ (288,034) | $ (103,175) |
Net loss per common share-basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average common shares outstanding-basic and diluted | 94,760,148 | 91,760,148 | 94,298,610 | 91,760,148 |
New Jersey Mining Company Cons5
New Jersey Mining Company Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (274,425) | $ (138,042) |
Adjustments to reconcile net loss to net cash (used) by operating activities: | ||
Depreciation and amortization | 3,214 | 102,187 |
Amortization of discount on note payable | 24,908 | |
Accretion of asset retirement obligation | 2,646 | 2,645 |
Stock based compensation | 42,039 | 46,620 |
Change in: | ||
Joint venture receivables | (2,282) | (10,783) |
Milling receivables | 9,127 | (181,873) |
Other current assets | (1,945) | 11,866 |
Interest payable | 8,021 | |
Accounts payable | 118,045 | 101,040 |
Accrued payroll and related payroll expense | (13,351) | (4,843) |
Milling advance | (50,000) | |
Interest payable related parties | 27,001 | |
Net cash (used) by operating activities | (65,023) | (113,162) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (42,272) | (96,543) |
Purchase of mineral property | (79,651) | |
Purchase of investment in joint venture | (225,000) | |
Net cash (used) by investing activities | (346,923) | (96,543) |
Cash flows from financing activities: | ||
Borrowings on notes payable, related parties | 475,000 | |
Borrowings under line of credit | 31,865 | 38,497 |
Principal payments on notes payable | (143,512) | (5,917) |
Principal payments on note payables, related parties | (7,095) | (19,104) |
Contributions from noncontrolling interest | 4,448 | |
Net cash provided (used) by financing activities | 360,706 | (13,476) |
Net change in cash and cash equivalents | (51,240) | (196,229) |
Cash and cash equivalents, beginning of period | 62,275 | 336,525 |
Cash and cash equivalents, end of period | 11,035 | 140,296 |
Non-cash investing and financing activities | ||
Shares of common stock issued for investment in joint venture | $ 210,000 | |
Debt for equipment purchase | $ 92,320 |
1. The Company and Significant
1. The Company and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016. For further information, refer to the financial statements and footnotes thereto in the Companys audited financial statements for the year ended December 31, 2015 as filed with the Securities and Exchange Commission. Principles of Consolidation At June 30, 2016, the consolidated financial statements include the accounts of the Company, the accounts of our majority owned New Jersey Mill Joint Venture (NJMJV), Golden Chest LLC Joint Venture (GCJV) and GF&H Company. 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. Revenue from harvest of raw timber is recognized when a contract has been established, the timber has been shipped, and payment is deemed probable. These sales of timber found on the Companys mineral properties are not a part of normal operations. Reclassifications Certain prior period amounts have been reclassified to conform to the 2016 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, 2016 | |
Notes | |
2. Going Concern | 2. Going Concern As shown in the accompanying financial statements, the Company had minimal revenue and a net loss of $83,921 and $274,425 respectively for the three and six month periods ending June 30, 2016 as well as an accumulated deficit, negative working capital, and a cash and cash equivalents balance of $11,035 at June 30, 2016. These factors raise substantial doubt about the Companys ability to continue as a going concern. See Note 15 Subsequent Events for funds raised after June 30, 2016 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 Party Transactions
3. Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
3. Related Party Transactions | 3. Related Party Transactions At June 30, 2016 and December 31, 2015 the Company had the following notes and interest payable to related parties: June 30, 2016 December 31, 2015 Mine Systems Design (MSD), a company in which our Companys Vice President owns 10.4%, 12% interest, monthly payments of $4,910 through October 2018 $ 137,500 $ 141,033 John Swallow, Company president, 5% interest, monthly payments of $5,834 with balloon payment of $475,973 in November 2017 541,644 545,208 John Swallow, Company president, 5% interest, principal and interest due January 2018 375,000 Margaret Bathgate, shareholder, 5% interest, principal and interest due January 2018 100,000 1,154,144 686,241 Accrued interest payable 27,001 Total 1,181,145 686,241 Current portion 87,233 88,114 Long term portion $ 1,093,912 $ 598,127 Related Party interest expense for the three and six month periods ending June 30, 2016 and 2015 is as follows: June 30, 2016 June 30, 2015 3 months 6 months 3 months 6 months $ 16,791 $ 30,682 $ 5,033 $ 10,353 |
4. Joint Ventures
4. Joint Ventures | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
4. Joint Ventures | 4. Joint Ventures For joint ventures in which 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, 2016 and December 31, 2015, the Companys percentage ownership and method of accounting for each joint venture is as follows: June 30, 2016 December 31, 2015 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method New Jersey Mill Joint Venture(NJMJV) 67% Yes Consolidated 67% Yes Consolidated Golden Chest LLC Joint Venture (GCJV) 100% Yes Consolidated 100% Yes Consolidated Butte Highlands Joint Venture (BHJV) 50% No Cost NA NA NA New Jersey Mill Joint Venture Agreement In June of 2012, Crescent Silver Corp. (Crescent) completed its buy-in for 35% of the NJMJV with a cumulative $3.2 million contribution to bring the capacity of the mill to 15 tonnes/hr. At June 30, 2016 and December 31, 2015, an account receivable existed with Crescent for $5,391 and $3,109, respectively, for monthly operating costs as defined in the JV agreement. Golden Chest LLC Joint Venture In December of 2015 the Company became the 100% owner of the Golden Chest property after purchasing the remaining 52.22% share of GCJV previously held by a third party (Note 12). Butte Highlands JV, LLC (BHJV) On January 29, 2016 the Company purchased a 50% interest in BHJV from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Companys common stock valued at $210,000 for a total consideration of $435,000. Highland Mining, LLC (Highland) is the other 50% owner of the joint venture. The Company determined that it had no significant influence with the joint venture as Highland is funding the ongoing exploration program. |
5. Non-controlling Interests
5. Non-controlling Interests | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
5. Non-controlling Interests | 5. Non-Controlling Interests Non-controlling interests include Crescents interest in NJMJV (Note 4) and other shareholders in GF&H Company of which the Company owns 66 2/3%. These interests changed as follows from December 31, 2015 to June 30, 2016: NJMJV GF&H TOTAL Balance December 31, 2015 $ 3,145,585 $ 61,655 $ 3,207,240 Contribution from non-controlling interest 4,448 4,448 Net income attributable to non-controlling interest 13,609 13,609 Balance June 30, 2016 $ 3,150,033 $ 75,264 $ 3,225,297 |
6. Earnings per Share
6. Earnings per Share | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
6. Earnings per Share | 6. Earnings per Share For the three and six month periods ending June 30, 2016 and 2015, the effect of the Companys potential issuance of shares from the exercise of 10,200,000 warrants and 5,750,000 stock options, and 10,200,000 warrants and 4,250,000 stock options, respectively 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, 2016 | |
Notes | |
7. Property, Plant, and Equipment | 7. Property, Plant, and Equipment Property, plant and equipment at June 30, 2016 and December 31, 2015, consisted of the following: June 30, 2016 December 31, 2015 Mill Mill land $ 225,289 $ 225,289 Mill building 536,193 536,193 Milling equipment 4,209,440 4,209,440 4,970,922 4,970,922 Less accumulated depreciation (285,420) (285,420) Total mill 4,685,502 4,685,502 Building and equipment at cost 382,188 362,188 Less accumulated depreciation (220,951) (217,738) Total building and equipment 161,237 144,450 Land Bear Creek 232,457 196,204 Little Baldy 72,139 72,139 BOW 230,449 230,449 Eastern Star 250,817 250,817 Gillig 79,137 79,137 Highwater 40,133 40,133 Total Land 905,132 868,879 Total $ 5,751,871 $ 5,698,831 In the three and six month periods ended June 30, 2015 $11,868 and $15,720 of interest was capitalized for the mill expansion project. No interest was capitalized for the mill expansion or other capital projects in 2016. |
8. Mineral Properties
8. Mineral Properties | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
8. Mineral Properties | 8. Mineral Properties Mineral properties at June 30, 2016 and December 31, 2015 consisted of the following: June 30, 2016 December 31, 2015 New Jersey $ 215,127 $ 215,127 McKinley 250,000 250,000 Golden Chest 1,524,880 1,445,229 Toboggan 5,000 5,000 Less accumulated amortization (8,267) (8,267) Total $ 1,986,740 $ 1,907,089 In the six month period ended June 30, 2016, $6,253 of interest was capitalized for the Golden Chest development project. No interest was capitalized for development in the six month period ended June 30, 2015. |
9. Notes Payable
9. Notes Payable | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
9. Notes Payable | 9. Notes Payable At June 30, 2016 and December 31, 2015, notes payable are as follows: June 30, 2016 December 31, 2015 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 $ 40,862 $ 42,726 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 $1,122 101,968 105,196 Tailings pump, 35 month note payable, 17.5% interest rate payable monthly, monthly payments of $3,268, collateralized by equipment 62,675 76,097 Mineral property, 10 quarterly payments, 0.0% interest rate discounted at 10%, collateralized by property, quarterly payments of $125,000 1,000,000 1,125,000 Total notes payable 1,205,505 1,349,019 Due within one year 698,866 572,806 Due after one year $ 506,639 $ 776,213 Future principal payments of debt and related discount amortization at June 30, 2016 are as follows: Note Discount Net 1 year $ 698,866 $ (85,735) $ 613,131 2 years 409,734 (17,997) 391,737 3 years 2,980 2,980 4 years 3,325 3,325 5 years 90,600 90,600 Thereafter Total $ 1,205,505 $ (103,732) $ 1,101,773 |
10. Equity
10. Equity | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
10. Equity | 10. Equity Common Stock In the first quarter of 2016, 3,000,000 restricted shares of the Companys common stock was issued to Timberline Resources in conjunction with the Companys purchase of Timberlines 50% interest in Butte Highlands JV (Note 4). No shares of common stock were issued in the second quarter of 2016 or in the first six months of 2015. S tock Purchase Warrants Outstanding No transactions in common stock purchase warrants occurred during the six month period ended June 30, 2016. The balance in stock purchase warrants is as follows: Number of Warrants Exercise Prices Balance December 31, 2014 21,200,000 $ 0.10-0.20 Expired May 31, 2015 11,000,000 0.15 Balance December 31, 2015 and June 30, 2016 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 |
11. Stock Options
11. Stock Options | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
11. Stock Options | 11. Stock Options On December 30, 2015, 1,500,000 options were granted to management, 750,000 options vested immediately and the remaining 750,000 will vest on December 30, 2016. The options expire 5 years after their corresponding vesting date. Each option allows the holder to purchase one share of the Companys stock at $0.10 prior to expiration. Compensation cost of $110,208 is associated with the options. Of this, $55,104 was recorded as a general and administrative expense in 2015 and $27,552 has been recognized in the first six months of 2016. The remaining unrecognized compensation cost of $27,552 is expected to be recognized in the second half of 2016. 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 3 years after vesting date. Each option allows the holder to purchase one share of the Companys stock at $0.10 prior to expiration. Compensation costs of $173,844 are associated with these options. Of this, $159,357 was recorded as a general and administrative expense in 2014 and 2015. The remaining $14,487 has been recognized in the first six months of 2016 Number of Options Exercise Prices Weighted Average Remaining Term (years) Balance December 31, 2014 4,500,000 0.10-0.15 Cancelled (250,000) 0.15 Issued 1,500,000 0.10 Balance December 31, 2015 and June 30, 2016 5,750,000 0.10-0.15 3.10 Exercisable at June 30, 2016 5,000,000 0.10-0.15 2.74 Outstanding options had no intrinsic value at June 30, 2016. |
12. Golden Chest Joint Venture
12. Golden Chest Joint Venture 13. Butte Highlands Joint Venture | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
12. Golden Chest Joint Venture 13. Butte Highlands Joint Venture | 12. Golden Chest Joint Venture In December of 2015, the Company became the 100% owner of the Golden Chest Joint Venture (GCJV). The Company received the 52.22% share of GCJV previously held by a third party in exchange for $180,000 and a 2% NSR royalty on all future gold production from the property. In addition to the assets of GCJV, a note payable of $1,250,000 for the patented mining claims was assumed by the Company. The Company purchased the outstanding share in GCJV to consolidate ownership and facilitate exploration and mining plans going forward. The unaudited pro forma financial information below represents the combined results of the Companys operations as if June 30, 2015 Three months Six months Revenue $ 872,250 $ 1,263,370 Operating expenses (1,259,330) (2,188,242) Net loss from continuing operations (387,080) (924,872) Net loss per common share, basic and diluted Nil $ 0.01 13. Butte Highlands Joint Venture On January 29, 2016 the Company purchased a 50% interest in Butte Highlands JV, LLC (BHJV) from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Companys common stock valued at $210,000 for a total consideration of $435,000. The purchase was made utilizing proceeds from a promissory note at 5% interest rate extended to the Company by President John Swallow (Note 3). Highland Mining, LLC is the other 50% owner of the joint venture. The Company purchased the interest in the BHJV to provide additional opportunities for exploration and development and expand the Companys mineral property portfolio. |
14. Line of Credit
14. Line of Credit | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
14. Line of Credit | 14. Line of Credit The Company has available a line of credit with a maximum borrowing amount of $43,000. At June 30, 2016, the outstanding balance of the line was $31,865 bearing an interest rate of 7.5%. |
15. Subsequent Events
15. Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
15. Subsequent Events | 15. Subsequent Events On July 13, 2016, the Company entered into a future gold purchase agreement with three of its officers (the purchasers) for net proceeds of $467,500 to fund startup costs at the Golden Chest. The agreement calls for the Company to deliver a total of 500 ounces of gold to the purchasers in quarterly payments starting December 1, 2016 for a period of two years as gold is produced from the Golden Chest Mine and New Jersey Mill. On July 29, 2016, the Company entered into a future gold purchase agreement through GVC Capital LLC for net proceeds of $772,806 to fund startup costs at the Golden Chest. The agreement calls for the Company to deliver a total of 804 ounces of gold to the purchasers in quarterly payments starting December 1, 2016 for a period of two years as gold is produced from the Golden Chest Mine and New Jersey Mill. On August 8, 2016, the Company entered into an Agreement and Plan of Merger (Merger Agreement) with its subsidiary G F & H Company (GF&H), whereby GF&H will merge into the Company and cease to exist. As of the date of the merger the Company owned 84% of GF&H. Pursuant to the terms of the Merger Agreement, the Company shall issue to GF&H minority shareholders 18,868 shares of the Companys common stock for every one (1) share of GF&H common stock. In total, the Company will issue 145,760 shares of common stock valued at $21,864 to those minority GF&H shareholders. Completion of the merger is contingent upon GF&H obtaining shareholder approval of the Merger Agreement. GF&H is set to hold a special meeting of shareholders to consider the Merger Agreement on August 19, 2016. |
1. The Company and Significan20
1. The Company and Significant Accounting Policies: Use of Estimates, Policy (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016. |
1. The Company and Significan21
1. The Company and Significant Accounting Policies: Principles of Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Principles of Consolidation | Principles of Consolidation At June 30, 2016, the consolidated financial statements include the accounts of the Company, the accounts of our majority owned New Jersey Mill Joint Venture (NJMJV), Golden Chest LLC Joint Venture (GCJV) and GF&H Company. Intercompany items and transactions between companies included in the consolidation are eliminated. |
1. The Company and Significan22
1. The Company and Significant Accounting Policies: Revenue Recognition (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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. Revenue from harvest of raw timber is recognized when a contract has been established, the timber has been shipped, and payment is deemed probable. These sales of timber found on the Companys mineral properties are not a part of normal operations. |
1. The Company and Significan23
1. The Company and Significant Accounting Policies: Reclassifications (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the 2016 financial statement presentation. Reclassifications had no effect on net loss, stockholders equity, or cash flows as previously reported. |
3. Related Party Transactions_
3. Related Party Transactions: Schedule of Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Related Party Transactions | June 30, 2016 December 31, 2015 Mine Systems Design (MSD), a company in which our Companys Vice President owns 10.4%, 12% interest, monthly payments of $4,910 through October 2018 $ 137,500 $ 141,033 John Swallow, Company president, 5% interest, monthly payments of $5,834 with balloon payment of $475,973 in November 2017 541,644 545,208 John Swallow, Company president, 5% interest, principal and interest due January 2018 375,000 Margaret Bathgate, shareholder, 5% interest, principal and interest due January 2018 100,000 1,154,144 686,241 Accrued interest payable 27,001 Total 1,181,145 686,241 Current portion 87,233 88,114 Long term portion $ 1,093,912 $ 598,127 |
3. Related Party Transactions25
3. Related Party Transactions: Related Party interest expense (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Related Party interest expense | June 30, 2016 June 30, 2015 3 months 6 months 3 months 6 months $ 16,791 $ 30,682 $ 5,033 $ 10,353 |
4. Joint Ventures_ Schedule of
4. Joint Ventures: Schedule of percentage ownership and method of accounting (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of percentage ownership and method of accounting | June 30, 2016 December 31, 2015 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method New Jersey Mill Joint Venture(NJMJV) 67% Yes Consolidated 67% Yes Consolidated Golden Chest LLC Joint Venture (GCJV) 100% Yes Consolidated 100% Yes Consolidated Butte Highlands Joint Venture (BHJV) 50% No Cost NA NA NA |
5. Non-controlling Interests_ C
5. Non-controlling Interests: Changes in non controlling interest during period (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Changes in non controlling interest during period | NJMJV GF&H TOTAL Balance December 31, 2015 $ 3,145,585 $ 61,655 $ 3,207,240 Contribution from non-controlling interest 4,448 4,448 Net income attributable to non-controlling interest 13,609 13,609 Balance June 30, 2016 $ 3,150,033 $ 75,264 $ 3,225,297 |
7. Property, Plant, and Equip28
7. Property, Plant, and Equipment: Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Property, Plant and Equipment | June 30, 2016 December 31, 2015 Mill Mill land $ 225,289 $ 225,289 Mill building 536,193 536,193 Milling equipment 4,209,440 4,209,440 4,970,922 4,970,922 Less accumulated depreciation (285,420) (285,420) Total mill 4,685,502 4,685,502 Building and equipment at cost 382,188 362,188 Less accumulated depreciation (220,951) (217,738) Total building and equipment 161,237 144,450 Land Bear Creek 232,457 196,204 Little Baldy 72,139 72,139 BOW 230,449 230,449 Eastern Star 250,817 250,817 Gillig 79,137 79,137 Highwater 40,133 40,133 Total Land 905,132 868,879 Total $ 5,751,871 $ 5,698,831 |
8. Mineral Properties_ Schedule
8. Mineral Properties: Schedule of mineral properties (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of mineral properties | June 30, 2016 December 31, 2015 New Jersey $ 215,127 $ 215,127 McKinley 250,000 250,000 Golden Chest 1,524,880 1,445,229 Toboggan 5,000 5,000 Less accumulated amortization (8,267) (8,267) Total $ 1,986,740 $ 1,907,089 |
9. Notes Payable_ Schedule of M
9. Notes Payable: Schedule of Maturities of Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Maturities of Long-term Debt | Note Discount Net 1 year $ 698,866 $ (85,735) $ 613,131 2 years 409,734 (17,997) 391,737 3 years 2,980 2,980 4 years 3,325 3,325 5 years 90,600 90,600 Thereafter Total $ 1,205,505 $ (103,732) $ 1,101,773 |
10. Equity_ Schedule of Stockho
10. Equity: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Stockholders' Equity Note, Warrants or Rights | Number of Warrants Exercise Prices Balance December 31, 2014 21,200,000 $ 0.10-0.20 Expired May 31, 2015 11,000,000 0.15 Balance December 31, 2015 and June 30, 2016 10,200,000 0.10-0.20 |
10. Equity_ Warrant expiration
10. Equity: Warrant expiration (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 |
11. Stock Options_ Schedule of
11. Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Stock Options, Activity | Number of Options Exercise Prices Weighted Average Remaining Term (years) Balance December 31, 2014 4,500,000 0.10-0.15 Cancelled (250,000) 0.15 Issued 1,500,000 0.10 Balance December 31, 2015 and June 30, 2016 5,750,000 0.10-0.15 3.10 Exercisable at June 30, 2016 5,000,000 0.10-0.15 2.74 |
12. Golden Chest Joint Ventur34
12. Golden Chest Joint Venture 13. Butte Highlands Joint Venture: Business Acquisition, Pro Forma Information, Description (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Business Acquisition, Pro Forma Information, Description | June 30, 2015 Three months Six months Revenue $ 872,250 $ 1,263,370 Operating expenses (1,259,330) (2,188,242) Net loss from continuing operations (387,080) (924,872) Net loss per common share, basic and diluted Nil $ 0.01 |
1. The Company and Significan35
1. The Company and Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2016 | |
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 | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||||||
Net income (loss) | $ 83,921 | $ (141,486) | $ 274,425 | $ 138,042 | ||
Cash and cash equivalents | $ 11,035 | $ 140,296 | $ 11,035 | $ 140,296 | $ 62,275 | $ 336,525 |
4. Joint Ventures_ Schedule o37
4. Joint Ventures: Schedule of percentage ownership and method of accounting (Details) | Jun. 30, 2016 | Dec. 31, 2015 |
Details | ||
Investment Owned, Percent of Net Assets | 67.00% | 67.00% |
Investment owned percentage of net assets 2 | 100.00% | 100.00% |
Investment owned percentage of net assets 3 | 50.00% |
4. Joint Ventures (Details)
4. Joint Ventures (Details) - USD ($) | Jan. 29, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 |
Details | ||||
Joint venture receivables, detail of accounts receivable | $ 5,391 | $ 3,109 | ||
Investment owned percentage of net assets 2 | 100.00% | 100.00% | ||
Payments for Purchase of Other Assets | $ 225,000 | |||
Stock Issued During Period, Shares, Purchase of Assets | 3,000,000 | |||
Debt for equipment purchase | $ 210,000 | $ 92,320 | ||
Investment in joint venture | $ 435,000 | $ 435,000 |
5. Non-controlling Interests_39
5. Non-controlling Interests: Changes in non controlling interest during period (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Details | ||||||
Other Noncontrolling Interests | $ 3,225,297 | $ 3,225,297 | $ 3,225,297 | $ 3,207,240 | ||
Proceeds from Contributions from Affiliates | 4,448 | |||||
Net income (loss) attributable to non-controlling interest | $ 13,609 | $ 13,633 | $ (24,187) | $ 13,609 | $ (34,867) |
6. Earnings per Share (Details)
6. Earnings per Share (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Details | ||
Warrants | 10,200,000 | 10,200,000 |
Stock options | 5,750,000 | 4,250,000 |
7. Property, Plant, and Equip41
7. Property, Plant, and Equipment: Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Details | ||
Mill land | $ 225,289 | $ 225,289 |
Mill building | 536,193 | 536,193 |
Milling equipment | 4,209,440 | 4,209,440 |
Mill buildings and improvements, accumulated depreciation | (285,420) | (285,420) |
Mill Buildings and Improvements, Net | 4,685,502 | 4,685,502 |
Buildings and Improvements, Gross | 382,188 | 362,188 |
Buildings and improvements, accumulated depreciation | (220,951) | (217,738) |
Buildings and improvements net | 161,237 | 144,450 |
Bear Creek Land | 232,457 | 196,204 |
Little Baldy Land | 72,139 | 72,139 |
BOW Land | 230,449 | 230,449 |
Eastern Star Land | 250,817 | 250,817 |
Gillig Land | 79,137 | 79,137 |
Highwater Land | 40,133 | 40,133 |
Land | 905,132 | 868,879 |
Property, plant and equipment, net of accumulated depreciation | $ 5,751,871 | $ 5,698,831 |
7. Property, Plant, and Equip42
7. Property, Plant, and Equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Details | |||
Interest Costs Capitalized | $ 11,868 | $ 6,253 | $ 15,720 |
8. Mineral Properties_ Schedu43
8. Mineral Properties: Schedule of mineral properties (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Details | ||
Mineral Properties 1 | $ 215,127 | $ 215,127 |
Mineral Properties 2 | 250,000 | 250,000 |
Mineral Properties 3 | 1,524,880 | 1,445,229 |
Mineral Properties 4 | 5,000 | 5,000 |
Mineral properties amortization | (8,267) | (8,267) |
Mineral properties net | $ 1,986,740 | $ 1,907,089 |
8. Mineral Properties (Details)
8. Mineral Properties (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Details | |||
Interest Costs Capitalized | $ 11,868 | $ 6,253 | $ 15,720 |
9. Notes Payable (Details)
9. Notes Payable (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Details | ||
Note payable, property | $ 40,862 | $ 42,726 |
Note payable, property | 101,968 | 105,196 |
Note payable, equipment | 62,675 | 76,097 |
Note payable, mineral property | 1,000,000 | 1,125,000 |
Long-term Debt | 1,205,505 | 1,349,019 |
Notes Payable, Current | 698,866 | 572,806 |
Notes Payable, Noncurrent | $ 506,639 | $ 776,213 |
9. Notes Payable_ Schedule of46
9. Notes Payable: Schedule of Maturities of Long-term Debt (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Details | ||
Note payable maturity 2016 | $ 698,866 | |
Note payable maturity 2016, discount | (85,735) | |
Note payable maturity 2016, net | 613,131 | |
Note payable maturity 2017 | 409,734 | |
Note payable maturity 2017, discount | (17,997) | |
Note payable maturity 2017, net | 391,737 | |
Note payable maturity 2018 | 2,980 | |
Note payable maturity 2018, net | 2,980 | |
Note payable maturity 2019 | 3,325 | |
Note payable maturity 2019, net | 3,325 | |
Note payable maturity 2020 | 90,600 | |
Note payable maturity 2020, net | 90,600 | |
Long-term Debt | 1,205,505 | $ 1,349,019 |
Note payable maturity, discount | (103,732) | |
Notes payable net | $ 1,101,773 |
11. Stock Options (Details)
11. Stock Options (Details) - USD ($) | Dec. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2015 |
Other General and Administrative Expense | $ 55,104 | |||
Remaining unrecognized compensation cost | $ 27,552 | |||
Remaining recognized compensation cost | $ 14,487 | |||
Options issued to management | ||||
Stock options issued to management | 1,500,000 | |||
Fair Value Assumptions, Expected Term | 55 years | |||
Officers' Compensation | $ 110,208 | |||
Stock options issued to management | 1,500,000 | |||
Options issued to management, additional | ||||
Stock options issued to management | 2,250,000 | |||
Other General and Administrative Expense | $ 159,357 | |||
Stock options issued to management | 2,250,000 |
11. Stock Options_ Schedule o48
11. Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2014 | |
Details | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,750,000 | 4,500,000 |
Cancelled | $ (250,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 1,500,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 5,000,000 |
12. Golden Chest Joint Ventur49
12. Golden Chest Joint Venture 13. Butte Highlands Joint Venture: Business Acquisition, Pro Forma Information, Description (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Details | ||
Business Acquisition, Pro Forma Revenue | $ 872,250 | $ 1,263,370 |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | (1,259,330) | (2,188,242) |
Business Acquisition, Pro Forma Net Income (Loss) | $ (387,080) | $ (924,872) |
Basic Earnings Per Share, Pro Forma | $ 0.01 |
12. Golden Chest Joint Ventur50
12. Golden Chest Joint Venture 13. Butte Highlands Joint Venture (Details) - USD ($) | Jan. 29, 2016 | Jun. 30, 2015 | Jun. 30, 2016 |
Details | |||
Payments for Purchase of Other Assets | $ 225,000 | ||
Stock Issued During Period, Shares, Purchase of Assets | 3,000,000 | ||
Debt for equipment purchase | $ 210,000 | $ 92,320 | |
Investment in joint venture | $ 435,000 | $ 435,000 |
14. Line of Credit (Details)
14. Line of Credit (Details) - USD ($) | Jan. 29, 2016 | Jun. 30, 2016 |
Details | ||
Line of Credit Facility, Borrowing Capacity, Description | maximum borrowing amount of $43,000 | |
Line of credit | $ 31,865 | |
Line of Credit Facility, Interest Rate Description | interest rate of 7.5% |