Cover
Cover | 6 Months Ended |
Jun. 30, 2020 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2020 |
Current Fiscal Year End Date | --12-31 |
Entity Registrant Name | Gold Reserve Inc. |
Entity Central Index Key | 0001072725 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents (Note 4) | $ 60,785,602 | $ 61,822,137 |
Marketable securities (Note 5) | 180,115 | 177,945 |
Income tax receivable (Note 10) | 7,593,479 | 10,798,291 |
Prepaid expense and other | 1,069,999 | 747,872 |
Total current assets | 69,629,195 | 73,546,245 |
Property, plant and equipment, net (Note 6) | 6,404,665 | 6,470,722 |
Deferred tax asset (Note 10) | 710,190 | |
Right of use asset | 209,348 | 251,984 |
Total assets | 76,953,398 | 80,268,951 |
Current Liabilities: | ||
Accounts payable and accrued expenses (Note 3) | 1,020,160 | 728,790 |
Lease liability | 89,119 | 85,516 |
Contingent value rights (Note 3) | 39,512 | |
Total current liabilities | 1,148,791 | 814,306 |
Lease liability | 124,437 | 169,911 |
Total liabilities | 1,273,228 | 984,217 |
SHAREHOLDERS' EQUITY | ||
Common shares (Note 11) | 302,469,647 | 302,469,647 |
Contributed surplus | 20,625,372 | 20,625,372 |
Stock options (Note 9) | 20,752,893 | 20,752,893 |
Accumulated deficit | (268,167,742) | (264,563,178) |
Total shareholders' equity | 75,680,170 | 79,284,734 |
Total liabilities and shareholders' equity | $ 76,953,398 | $ 80,268,951 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred Sttock, issued | 0 | 0 |
Common stock, issued | 99,395,048 | 99,395,048 |
Common stock, outstanding | 99,395,048 | 99,395,048 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
INCOME (LOSS) | ||||
Interest income | $ 56,033 | $ 440,415 | $ 258,350 | $ 971,053 |
Gain (loss) on marketable equity securities | 46,896 | (86,439) | 2,170 | (100,565) |
Foreign currency gain (loss) | 19,916 | 293,977 | (20,705) | 584,243 |
Total Other Income | 122,845 | 647,953 | 239,815 | 1,454,731 |
EXPENSES | ||||
Corporate general and administrative (Note 3) | 1,070,954 | 1,291,411 | 2,284,367 | 2,448,259 |
Contingent value rights (Note 3) | 6,168 | 38,822 | ||
Siembra Minera Project costs (Note 7) | 350,844 | 2,431,298 | 727,886 | 4,269,160 |
Exploration costs | 3,208 | 2,728 | 3,208 | 2,728 |
Legal and accounting | 170,371 | 518,866 | 357,503 | 899,228 |
Arbitration and settlement (Note 3) | 630,793 | 13,570 | 908,279 | 97,672 |
Equipment holding costs | 125,931 | 108,689 | 234,504 | 216,651 |
Total Expense | 2,358,269 | 4,366,562 | 4,554,569 | 7,933,698 |
Net loss before income tax | (2,235,424) | (3,718,609) | (4,314,754) | (6,478,967) |
Income tax benefit (Note 10) | 112,832 | 710,190 | ||
Net loss and comprehensive loss for the period | $ (2,122,592) | $ (3,718,609) | $ (3,604,564) | $ (6,478,967) |
Net loss per share, basic and diluted | $ (0.02) | $ (0.04) | $ (0.04) | $ (0.07) |
Weighted average common shares outstanding, basic and diluted | 99,395,048 | 99,395,048 | 99,395,048 | 99,395,048 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Equity Option [Member] | Retained Earnings [Member] |
Beginning balance, value at Dec. 31, 2018 | $ 378,009,884 | $ 20,625,372 | $ 20,721,850 | $ (251,416,280) |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2018 | 99,395,048 | |||
Net loss for the period | (2,760,358) | |||
Ending balance, value at Mar. 31, 2019 | 378,009,884 | 20,625,372 | 20,752,893 | (254,176,638) |
Stock option compensation (Note 9) | 31,043 | |||
Beginning balance, value at Dec. 31, 2018 | $ 378,009,884 | 20,625,372 | 20,721,850 | (251,416,280) |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2018 | 99,395,048 | |||
Ending balance, value at Jun. 30, 2019 | $ 302,469,647 | 20,625,372 | 20,752,893 | (257,895,247) |
Beginning balance, value at Mar. 31, 2019 | 378,009,884 | 20,625,372 | 20,752,893 | (254,176,638) |
Net loss for the period | (3,718,609) | |||
Ending balance, value at Jun. 30, 2019 | 302,469,647 | 20,625,372 | 20,752,893 | (257,895,247) |
Return of capital (Note 11) | (75,540,237) | |||
Beginning balance, value at Dec. 31, 2019 | $ 302,469,647 | 20,625,372 | 20,752,893 | (264,563,178) |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2019 | 99,395,048 | |||
Net loss for the period | (1,481,972) | |||
Ending balance, value at Mar. 31, 2020 | 302,469,647 | 20,625,372 | 20,752,893 | (266,045,150) |
Beginning balance, value at Dec. 31, 2019 | $ 302,469,647 | 20,625,372 | 20,752,893 | (264,563,178) |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2019 | 99,395,048 | |||
Ending balance, value at Jun. 30, 2020 | $ 302,469,647 | 20,625,372 | 20,752,893 | (268,167,742) |
Beginning balance, value at Mar. 31, 2020 | 302,469,647 | 20,625,372 | 20,752,893 | (266,045,150) |
Net loss for the period | (2,122,592) | |||
Ending balance, value at Jun. 30, 2020 | $ 302,469,647 | $ 20,625,372 | $ 20,752,893 | $ (268,167,742) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities: | ||||
Net loss for the period | $ (2,122,592) | $ (3,718,609) | $ (3,604,564) | $ (6,478,967) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Stock option compensation | 31,043 | |||
Depreciation | 33,028 | 53,271 | 66,057 | 65,565 |
Loss (gain) on marketable equity securities | (46,896) | 86,439 | (2,170) | 100,565 |
Deferred tax | (112,832) | (710,190) | ||
Changes in non-cash working capital: | ||||
Decrease in income tax receivable | 3,204,812 | |||
Net decrease (increase) in prepaid expense and other | (733,113) | (1,082,546) | (322,127) | 70,763 |
Net increase in payables and accrued expenses | 50,679 | 1,700,363 | 331,647 | 2,069,506 |
Net cash used in operating activities | (2,931,726) | (2,961,082) | (1,036,535) | (4,141,525) |
Cash Flows from Investing Activities: | ||||
Purchase of property, plant and equipment | (2,235) | (3,485) | ||
Net cash used in investing activities | (2,235) | (3,485) | ||
Cash Flows from Financing Activities: | ||||
Return of capital | (75,540,237) | (75,540,237) | ||
Net cash used in financing activities | (75,540,237) | (75,540,237) | ||
Change in Cash and Cash Equivalents: | ||||
Net decrease in cash and cash equivalents | (2,931,726) | (78,503,554) | (1,036,535) | (79,685,247) |
Cash and cash equivalents - beginning of period | 63,717,328 | 146,464,660 | 61,822,137 | 147,646,353 |
Cash and cash equivalents - end of period | $ 60,785,602 | $ 67,961,106 | $ 60,785,602 | $ 67,961,106 |
The Company and Significant Acc
The Company and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | Note 1. The Company and Significant Accounting Policies Gold Reserve Inc. ("Gold Reserve", the "Company", "we", "us", or "our") is engaged in the business of acquiring, exploring and developing mining projects and was incorporated in 1998 under the laws of the Yukon Territory, Canada and continued to Alberta, Canada in September 2014. Gold Reserve Inc. is the successor issuer to Gold Reserve Corporation which was incorporated in 1956. A significant portion of our recent activities relate to the execution of the July 2016 settlement agreement, (as amended, the "Settlement Agreement") with the Bolivarian Republic of Venezuela ("Venezuela") in regards to the payment of the Award (as defined herein) and the acquisition of our Mining Data by Venezuela, identifying our legal options associated with the collection of the unpaid balance of the Award and developing our future operational strategies associated with post-sanctions development of the Siembra Minera Project. The U.S. and Canadian governments have imposed various sanctions targeting Venezuela (the "Sanctions"). The Sanctions implemented by the U.S. government generally block all property of the Venezuelan government and state-owned/controlled entities such as Siembra Minera. In addition, U.S. Sanctions prohibit U.S. persons from dealing with Specially Designated Nationals ("SDNs") and targets corruption in, among other identified sectors, the gold sector of the Venezuela economy. The Sanctions implemented by the Canadian government generally include asset freezes and impose prohibitions on dealings with certain named Venezuelan officials under the Special Economic Measures (Venezuela) Regulations of the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Regulations of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) Basis of Presentation and Principles of Consolidation 55% 45% Cash and Cash Equivalents Exploration and Development Costs Property, Plant and Equipment Impairment of Long-Lived Assets . Foreign Currency Stock Based Compensation Income Taxes Use of Estimates Net Income (Loss) Per Share Marketable Securities Equity accounted investments Financial Instruments |
New Accounting Policies
New Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
New Accounting Policies | |
[custom:NewAccountingPoliciesTextBlock] | Note 2. New Accounting Policies Recently issued accounting pronouncements In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This update is intended to clarify certain interactions between Topics which guide the accounting for certain equity securities and investments under the equity method of accounting. These amendments improve current GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. This update is effective for us commencing with the annual period beginning after December 15, 2020, including interim periods within that year. We do not expect the adoption of this standard will have a significant impact on our financial statements. |
Arbitral Award, Settlement Agre
Arbitral Award, Settlement Agreement and Mining Data Sale | 6 Months Ended |
Jun. 30, 2020 | |
Arbitral Award Settlement Agreement And Mining Data Sale | |
[custom:ArbitralAwardSettlementAgreementAndMiningDataSaleTextBlock] | Note 3. Arbitral Award, Settlement Agreement and Mining Data Sale In October 2009 we initiated a claim (the "Brisas Arbitration") under the Additional Facility Rules of the International Centre for the Settlement of Investment Disputes ("ICSID") to obtain compensation for the losses caused by the actions of Venezuela that terminated our previous mining project known as the "Brisas Project." On September 22, 2014, we were granted an Arbitral Award (the "Award") totaling $740.3 In July 2016, we signed the Settlement Agreement, subsequently amended, whereby Venezuela agreed to pay us a total of approximately $ 1.032 $792 $240 To date, the Company has received payments of approximately $254 $21.5 $893 $115 In addition to other constraints, the Sanctions restrict the Company from working with those Venezuelan government officials responsible for the payment and transfer of funds associated with the Settlement Agreement which adversely impacts our ability to collect the remaining balance of the Award plus interest and/or amounts due pursuant to the Settlement Agreement from Venezuela. We have Contingent Value Rights ("CVRs") outstanding that entitle the holders to an aggregate of 5.466% $10.0 $39 We maintain a bonus plan (the "Bonus Plan") which is intended to compensate the participants, including executive officers, employees, directors and consultants for their past and present contributions to the Company. The bonus pool under the Bonus Plan is comprised of the gross proceeds collected or the fair value of any consideration realized less applicable taxes multiplied by 1.28% 6.4% $4.4 45 In March 2020, the U.S. Congress passed legislation which allows companies to carryback net operating losses incurred in 2018, 2019 and 2020 to offset income earned in prior years. In response to this legislation, management reduced its estimate of the income tax due on amounts received in 2018 from the sale of Mining Data and collection of the Award. The effect of this change in estimate was to increase the net proceeds from the sale of the Mining Data and collection of the Award subject to the CVR and the Bonus Plan and as a result, the Company recorded an increase in its obligation to the CVR holders and Bonus Plan participants by approximately $39 thousand and $45 thousand, respectively. Due to U.S. and Canadian Sanctions and the uncertainty of transferring the remaining cash held in the Trust Account to bank accounts outside of Venezuela, management only considers those funds received by the Company into its North American bank accounts as funds available for purposes of the CVR and Bonus Plan cash distributions. Following receipt, if any, of additional funds pursuant to the Settlement Agreement and after applicable payments to CVR holders and Bonus Plan participants, we expect to distribute to our shareholders a substantial majority of any remaining amounts, subject to applicable regulatory requirements and retaining sufficient reserves for operating expenses, contractual obligations, accounts payable and income taxes, and any obligations arising as a result of the collection of the remaining amount owed by Venezuela (See Note 11, Return of Capital). |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Note 4. Cash and Cash Equivalents Schedule of Cash and Cash Equivalents June 30, December 31, 2020 2019 Bank deposits $ 29,052,100 $ 31,499,893 Short term investments 31,733,502 30,322,244 Total $ 60,785,602 $ 61,822,137 Short term investments include money market funds and US treasury bills which mature in three months or less. Payments made by Venezuela associated with the Settlement have been deposited into a trust account (the "Trust Account") for the benefit of the Company at Banco de Desarrollo Económico y Social de Venezuela ("Bandes Bank"), a Venezuelan state-owned development bank. As Bandes Bank has been designated as an SDN, in 2018 the Company recorded an impairment loss on the remaining balance in the account and considers the Trust Account to be blocked property and not recoverable for accounting purposes. The Trust Account and the approximately $21.5 |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments Disclosure [Text Block] | Note 5. Marketable Securities June 30, December 31, Schedule of Marketable Securities Value 2020 2019 Equity securities Fair value at beginning of period $ 177,945 $ 287,638 Increase (decrease) in fair value 2,170 (109,693) Fair value at balance sheet date $ 180,115 $ 177,945 Marketable equity securities are classified as trading securities and accounted for at fair value, based on quoted market prices with unrealized gains or losses recorded in the Consolidated Statements of Operations. Accounting Standards Codification ("ASC") 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are quoted prices in active markets for identical assets or liabilities, Level 2 inputs are inputs other than quoted prices included within Level 1 that are directly or indirectly observable for the asset or liability and Level 3 inputs are unobservable inputs for the asset or liability that reflect the entity's own assumptions. The fair values of the Company's marketable equity securities as at the balance sheet date are based on Level 1 inputs. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 6. Property, Plant and Equipment Schedule of Property Plant and Equipment Accumulated Cost Depreciation Net June 30, 2020 Machinery and equipment $ 5,609,567 $ – $ 5,609,567 Furniture and office equipment 479,579 (373,682) 105,897 Transportation equipment 491,025 (181,930) 309,095 Leasehold improvements 51,658 (21,552) 30,106 Mineral property 350,000 – 350,000 $ 6,981,829 $ (577,164) $ 6,404,665 Accumulated Cost Depreciation Net December 31, 2019 Machinery and equipment $ 5,609,567 $ – $ 5,609,567 Furniture and office equipment 479,579 (360,224) 119,355 Transportation equipment 491,025 (132,827) 358,198 Leasehold improvements 51,658 (18,056) 33,602 Mineral property 350,000 – 350,000 $ 6,981,829 $ (511,107) $ 6,470,722 Machinery and equipment consists of infrastructure and milling equipment originally intended for use on the Brisas Project. We evaluate our equipment to determine whether events or changes in circumstances have occurred that may indicate that the carrying amount may not be recoverable. We regularly obtain comparable market data for similar equipment as evidence that fair value less cost to sell is in excess of the carrying amount. No impairment write-downs of property, plant and equipment were recorded during the six months ended June 30, 2020 and 2019. |
Empresa Mixta Ecosocialista Sie
Empresa Mixta Ecosocialista Siembra Minera, S.A | 6 Months Ended |
Jun. 30, 2020 | |
Empresa Mixta Ecosocialista Siembra Minera S.a | |
[custom:EmpresaMixtaEcosocialistsSiembraMineraSATextBlock] | Note 7. Empresa Mixta Ecosocialista Siembra Minera, S.A In October 2016, together with an affiliate of the government of Venezuela, we established Siembra Minera. The primary purpose of this entity is to develop the Siembra Minera Project, as defined below. Siembra Minera is beneficially owned 55% 45% On March 16, 2018, the Company announced the completion of a technical report for the Preliminary Economic Assessment ("PEA") for the Siembra Minera Project in accordance with Canadian National Instrument 43-101 - $20.2 In addition to other constraints, the Sanctions restrict the Company from working with those Venezuelan government officials responsible for the operation of Siembra Minera and the development of the Siembra Minera Project which, until Sanctions are lifted, obstructs our ability to develop the Siembra Minera Project as originally planned. |
KSOP Plan
KSOP Plan | 6 Months Ended |
Jun. 30, 2020 | |
Ksop Plan | |
[custom:KsopPlanTextBlock] | Note 8. KSOP Plan The KSOP Plan, adopted in 1990 for retirement benefits of employees, is comprised of two parts, (1) a salary reduction component, and a 401(k) which includes provisions for discretionary contributions by us, and (2) an employee share ownership component, or ESOP. Allocation of Class A common shares or cash to participants' accounts, subject to certain limitations, is at the discretion of the Board. There have been no Class A common shares allocated to the KSOP Plan since 2011. Cash contributions for plan year 2019 were approximately $171,000 no |
Stock Based Compensation Plans
Stock Based Compensation Plans | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Note 9. Stock Based Compensation Plans Equity Incentive Plans The Company's equity incentive plan provides for the grant of stock options to purchase up to a maximum of 8,750,000 2,307,000 ten years Stock option transactions 2020 2019 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding - beginning of period 4,369,565 $ 3.09 4,554,565 $ 3.11 Options expired - - (185,000) 3.43 Options outstanding - end of period 4,369,565 $ 3.09 4,369,565 $ 3.09 Options exercisable - end of period 4,369,565 $ 3.09 4,369,565 $ 3.09 The following table relates to stock options at June 30, 2020: Stock Options Outstanding and Exercisable Outstanding Options Exercisable Options Exercise Price Number Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (Years) Number Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (Years) $1.92 444,922 $1.92 $ 0 0.94 444,922 $1.92 $ 0 0.94 $2.69 125,000 $2.69 0 6.83 125,000 $2.69 0 6.83 $3.15 3,369,643 $3.15 0 6.63 3,369,643 $3.15 0 6.63 $3.91 180,000 $3.91 0 5.00 180,000 $3.91 0 5.00 $4.02 250,000 $4.02 0 4.07 250,000 $4.02 0 4.07 $1.92 $4.02 4,369,565 $3.09 $ 0 5.84 4,369,565 $3.09 $ 0 5.84 No options were granted during the six month periods ended June 30, 2020 and 2019. The Company recorded non-cash compensation expense during the six months ended June 30, 2020 and 2019 of approximately 0 31,000 Change of Control Agreements The Company maintains change of control agreements with certain officers and employees. A Change of Control is generally defined as one or more of the following: the acquisition by any individual, entity or group, of beneficial ownership of the Company of 25 percent of the voting power of the outstanding Common Shares; a change in the composition of the Board that causes less than a majority of the current directors of the Board to be members of the incoming board; reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company; liquidation or dissolution of the Company; or any other event the Board reasonably determines constitutes a Change of Control. As of June 30, 2020, the amount payable under the change of control agreements, in the event of a Change of Control, was approximately $7.1 |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 10. Income Tax Income tax benefit for the six months ended June 30, 2020 and 2019 differs from the amount that would result from applying Canadian tax rates to net income before taxes. These differences result from the items noted below: 2020 2019 Amount % Amount % Income tax benefit $ 1,078,689 25 $ 1,619,742 25 Decrease due to: Different tax rates on foreign subsidiaries (67,674) (2) (219,996) (3) Non-deductible expenses (9,970) - (8,229) - Change in valuation allowance and other (290,855) (7) (1,391,517) (22) $ 710,190 16 $ - - The Company recorded income tax benefit of $0.7 0 $0.7 $7.6 $4.3 The components of the Canadian and U.S. deferred income tax assets and liabilities as of June 30, 2020 and December 31, 2019 were as follows: June 30, December 31, 2020 2019 Deferred income tax Net operating loss carry forwards $ 33,639,056 $ 34,569,939 Property, Plant and Equipment 4,742,791 4,742,961 Other 1,732,411 1,623,503 Total deferred income tax assets 40,114,258 40,936,403 Valuation allowance (39,382,232) (40,915,022) Deferred income tax assets net of valuation allowance $ 732,026 $ 21,381 Deferred income tax liabilities Other (21,836) (21,381) Net deferred income tax asset $ 710,190 $ - At June 30, 2020, we had the following U.S. and Canadian tax loss carry forwards U.S. Canadian Expires $ $ 1,919,591 2026 3,562,511 2027 13,578,667 2028 12,868,603 2029 15,898,444 2030 17,802,576 2031 5,165,282 2032 7,509,257 2033 8,700,613 2034 12,419,483 2035 14,765,458 2036 11,135,181 2037 1,065,606 2038 2,777,275 2039 2,546,919 2040 3,381,856 - $ 3,381,856 $ 131,715,466 |
Return of Capital
Return of Capital | 6 Months Ended |
Jun. 30, 2020 | |
Return Of Capital | |
[custom:ReturnOfCapitalTextBlock] | Note 11. Return of Capital In June 2019, the Company completed a return of capital transaction by way of a court-approved plan of arrangement transaction under the Business Corporations Act $76 $0.76 |
The Company and Significant A_2
The Company and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation 55% 45% |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Exploration and Development Costs | Exploration and Development Costs |
Property, Plant and Equipment | Property, Plant and Equipment |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets . |
Foreign Currency | Foreign Currency |
Stock Based Compensation | Stock Based Compensation |
Income Taxes | Income Taxes |
Use of Estimates | Use of Estimates |
Net Income (Loss) Per Share | Net Income (Loss) Per Share |
Marketable Securities | Marketable Securities |
Equity accounted investments | Equity accounted investments |
Financial Instruments | Financial Instruments |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Schedule of Cash and Cash Equivalents June 30, December 31, 2020 2019 Bank deposits $ 29,052,100 $ 31,499,893 Short term investments 31,733,502 30,322,244 Total $ 60,785,602 $ 61,822,137 Short term investments include money market funds and US treasury bills which mature in three months or less. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
Schedule of Marketable Securities Value | June 30, December 31, Schedule of Marketable Securities Value 2020 2019 Equity securities Fair value at beginning of period $ 177,945 $ 287,638 Increase (decrease) in fair value 2,170 (109,693) Fair value at balance sheet date $ 180,115 $ 177,945 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | Schedule of Property Plant and Equipment Accumulated Cost Depreciation Net June 30, 2020 Machinery and equipment $ 5,609,567 $ – $ 5,609,567 Furniture and office equipment 479,579 (373,682) 105,897 Transportation equipment 491,025 (181,930) 309,095 Leasehold improvements 51,658 (21,552) 30,106 Mineral property 350,000 – 350,000 $ 6,981,829 $ (577,164) $ 6,404,665 Accumulated Cost Depreciation Net December 31, 2019 Machinery and equipment $ 5,609,567 $ – $ 5,609,567 Furniture and office equipment 479,579 (360,224) 119,355 Transportation equipment 491,025 (132,827) 358,198 Leasehold improvements 51,658 (18,056) 33,602 Mineral property 350,000 – 350,000 $ 6,981,829 $ (511,107) $ 6,470,722 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock option transactions | Stock option transactions 2020 2019 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding - beginning of period 4,369,565 $ 3.09 4,554,565 $ 3.11 Options expired - - (185,000) 3.43 Options outstanding - end of period 4,369,565 $ 3.09 4,369,565 $ 3.09 Options exercisable - end of period 4,369,565 $ 3.09 4,369,565 $ 3.09 |
Stock Options Outstanding and Exercisable | The following table relates to stock options at June 30, 2020: Stock Options Outstanding and Exercisable Outstanding Options Exercisable Options Exercise Price Number Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (Years) Number Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (Years) $1.92 444,922 $1.92 $ 0 0.94 444,922 $1.92 $ 0 0.94 $2.69 125,000 $2.69 0 6.83 125,000 $2.69 0 6.83 $3.15 3,369,643 $3.15 0 6.63 3,369,643 $3.15 0 6.63 $3.91 180,000 $3.91 0 5.00 180,000 $3.91 0 5.00 $4.02 250,000 $4.02 0 4.07 250,000 $4.02 0 4.07 $1.92 $4.02 4,369,565 $3.09 $ 0 5.84 4,369,565 $3.09 $ 0 5.84 |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income tax benefit | Income tax benefit for the six months ended June 30, 2020 and 2019 differs from the amount that would result from applying Canadian tax rates to net income before taxes. These differences result from the items noted below: 2020 2019 Amount % Amount % Income tax benefit $ 1,078,689 25 $ 1,619,742 25 Decrease due to: Different tax rates on foreign subsidiaries (67,674) (2) (219,996) (3) Non-deductible expenses (9,970) - (8,229) - Change in valuation allowance and other (290,855) (7) (1,391,517) (22) $ 710,190 16 $ - - |
Deferred income tax | The components of the Canadian and U.S. deferred income tax assets and liabilities as of June 30, 2020 and December 31, 2019 were as follows: June 30, December 31, 2020 2019 Deferred income tax Net operating loss carry forwards $ 33,639,056 $ 34,569,939 Property, Plant and Equipment 4,742,791 4,742,961 Other 1,732,411 1,623,503 Total deferred income tax assets 40,114,258 40,936,403 Valuation allowance (39,382,232) (40,915,022) Deferred income tax assets net of valuation allowance $ 732,026 $ 21,381 Deferred income tax liabilities Other (21,836) (21,381) Net deferred income tax asset $ 710,190 $ - |
U.S. and Canadian tax loss carry forwards | At June 30, 2020, we had the following U.S. and Canadian tax loss carry forwards U.S. Canadian Expires $ $ 1,919,591 2026 3,562,511 2027 13,578,667 2028 12,868,603 2029 15,898,444 2030 17,802,576 2031 5,165,282 2032 7,509,257 2033 8,700,613 2034 12,419,483 2035 14,765,458 2036 11,135,181 2037 1,065,606 2038 2,777,275 2039 2,546,919 2040 3,381,856 - $ 3,381,856 $ 131,715,466 |
The Company and Significant A_3
The Company and Significant Accounting Policies (Details Narrative) | Jun. 30, 2020 |
Accounting Policies [Abstract] | |
Siembra Minera beneficial ownership by Venezuela | 55.00% |
Siembra Minera beneficial ownership by Company | 45.00% |
Arbitral Award, Settlement Ag_2
Arbitral Award, Settlement Agreement and Mining Data Sale (Details Narrative) $ in Thousands | Jun. 30, 2020USD ($) |
Arbitral Award Settlement Agreement And Mining Data Sale | |
Total Award | $ 740,300 |
Settlement Agreement | 1,032,000 |
Venezuela agreed to pay to satisfy award | 792,000 |
Venezuela agreed to pay for mining data | 240,000 |
Payments made pursuant to settlement agreement | 254,000 |
Amount remaining in trust account | 21,500 |
Amount due and unpaid including interest | 893,000 |
Interest due | $ 115,000 |
Amount of proceeds cvr holders entitled to | 5.466% |
Cumulative amount paid to cvr holders | $ 10,000 |
Increase in obligation to cvr holders | $ 39 |
Bonus percentage of first two hundred million collected | 1.28% |
Bonus percentage Thereafter | 6.40% |
Cumulative amount paid to bonus plan participants | $ 4,400 |
Increase in obligation to bonus plan participants | $ 45 |
Schedule of Cash and Cash Equiv
Schedule of Cash and Cash Equivalents (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||||||
Bank deposits | $ 29,052,100 | $ 31,499,893 | ||||
Short term investments | 31,733,502 | 30,322,244 | ||||
Total | $ 60,785,602 | $ 63,717,328 | $ 61,822,137 | $ 67,961,106 | $ 146,464,660 | $ 147,646,353 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details Narrative) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Cash and Cash Equivalents [Abstract] | |
Impairment loss | $ 21.5 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | ||
Fair value at beginning of period | $ 177,945 | $ 287,638 |
Increase (decrease) in fair value | 2,170 | (109,693) |
Fair value at balance sheet date | $ 180,115 | $ 177,945 |
Schedule of Property Plant and
Schedule of Property Plant and Equipment (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Net, Total | $ 6,404,665 | $ 6,470,722 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Machinery And Equipment Gross | 5,609,567 | 5,609,567 |
[custom:MachineryAndEquipmentNet-0] | 5,609,567 | 5,609,567 |
Accumulated Depreciation Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated Depreciation Machinery And Equipment | ||
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture And Fixtures Gross | 479,579 | 479,579 |
[custom:FurnitureAndFixturesNet-0] | 105,897 | 119,355 |
Accumulated Depreciation Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated Depreciation Furniture And Fixtures | (373,682) | (360,224) |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Transportation Equipment Gross | 491,025 | 491,025 |
[custom:TransportationEquipmentNet-0] | 309,095 | 358,198 |
Accumulated Depreciation Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated Depreciation Transportation Equipment | (181,930) | (132,827) |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold Improvements Gross | 51,658 | 51,658 |
[custom:LeaseholdImprovementsNet-0] | 30,106 | 33,602 |
Accumulated Depreciation Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated Depreciation Leasehold Improvements | (21,552) | (18,056) |
Mineral Property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Mineral Property Gross | 350,000 | 350,000 |
[custom:MineralPropertyNet-0] | 350,000 | 350,000 |
Accumulated Depreciation Mineral Property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated Depreciation Mineral Property | ||
Property, Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant And Equipment Gross | 6,981,829 | 6,981,829 |
Property, Plant and Equipment, Net, Total | 6,404,665 | 6,470,722 |
Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated Depreciation | $ (577,164) | $ (511,107) |
Empresa Mixta Ecosocialista S_2
Empresa Mixta Ecosocialista Siembra Minera, S.A (Details Narrative) $ in Millions | Jun. 30, 2020USD ($) |
Empresa Mixta Ecosocialista Siembra Minera S.a | |
Siembra Minera beneficial ownership by Venezuela | 55.00% |
Siembra Minera beneficial ownership by Company | 45.00% |
Cumulative expenditures associated with Siembra Minera | $ 20.2 |
KSOP Plan (Details Narrative)
KSOP Plan (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Ksop Plan | ||
Cash contributions to the plan | $ 0 | $ 171,000 |
Stock option transactions (Deta
Stock option transactions (Details) - Equity Option [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance (in shares) | 4,369,565 | 4,554,565 |
Beginning balance (in dollars per share) | $ 3.09 | $ 3.11 |
Expired | 185,000 | |
Expired | $ 3.43 | |
Expired | (185,000) | |
Ending balance (in shares) | 4,369,565 | 4,369,565 |
Ending balance (in dollars per share) | $ 3.09 | $ 3.09 |
Balance (in shares) | 4,369,565 | 4,369,565 |
Exercise Price (in dollars per share) | $ 3.09 | $ 3.09 |
Stock Options Outstanding and E
Stock Options Outstanding and Exercisable (Details) | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options Weighted Average Exercise Price: $1.92 | $ 1.92 |
Outstanding Options Number: $1.92 | shares | 444,922 |
Outstanding Options Weighted Average Exercise Price: $1.92 | $ 1.92 |
Outstanding Options Aggregate Intrinsic Value: $1.92 | $ | $ 0 |
Outstanding Options Weighted Average Remaining Contractual Term (Years): $1.92 | 11 months 8 days |
Exercisable Options Number: $1.92 | shares | 444,922 |
Exercisable Options Weighted Average Exercise Price: $1.92 | $ 1.92 |
Exercisable Options Aggregate Intrinsic Value: $1.92 | $ | $ 0 |
Exercisable Options Weighted Average Remaining Contractual Term (Years): $1.92 | 11 months 8 days |
[custom:OutstandingOptionsExercisePrice269-0] | $ 2.69 |
Outstanding Options Number: $2.69 | shares | 125,000 |
Outstanding Options Weighted Average Exercise Price: $2.69 | $ 2.69 |
Outstanding Options Aggregate Intrinsic Value: $2.69 | $ | $ 0 |
Outstanding Options Weighted Average Remaining Contractual Term (Years): $2.69 | 6 years 9 months 29 days |
Exercisable Options Number: $2.69 | shares | 125,000 |
Exercisable Options Weighted Average Exercise Price: $2.69 | $ 2.69 |
Exercisable Options Aggregate Intrinsic Value: $2.69 | $ | $ 0 |
Exercisable Options Weighted Average Remaining Contractual Term (Years): $2.69 | 6 years 9 months 29 days |
[custom:OutstandingOptionsExercisePrice315-0] | $ 3.15 |
Outstanding Options Number: $3.15 | shares | 3,369,643 |
Outstanding Options Weighted Average Exercise Price: $3.15 | $ 3.15 |
Outstanding Options Aggregate Intrinsic Value: $3.15 | $ | $ 0 |
Outstanding Options Weighted Average Remaining Contractual Term (Years): $3.15 | 6 years 7 months 17 days |
Exercisable Options Number: $3.15 | shares | 3,369,643 |
Exercisable Options Weighted Average Exercise Price: $3.15 | $ 3.15 |
Exercisable Options Aggregate Intrinsic Value: $3.15 | $ | $ 0 |
Exercisable Options Weighted Average Remaining Contractual Term (Years): $3.15 | 6 years 7 months 17 days |
[custom:OutstandingOptionsExercisePrice391-0] | $ 3.91 |
Outstanding Options Number: $3.91 | shares | 180,000 |
Outstanding Options Weighted Average Exercise Price: $3.91 | $ 3.91 |
Outstanding Options Aggregate Intrinsic Value: $3.91 | $ | $ 0 |
Outstanding Options Weighted Average Remaining Contractual Term (Years): $3.91 | 5 years |
Exercisable Options Number: $3.91 | shares | 180,000 |
Exercisable Options Weighted Average Exercise Price: $3.91 | $ 3.91 |
Exercisable Options Aggregate Intrinsic Value: $3.91 | $ | $ 0 |
Exercisable Options Weighted Average Remaining Contractual Term (Years): $3.91 | 5 years |
[custom:OutstandingOptionsExercisePrice402-0] | $ 4.02 |
Outstanding Options Number: $4.02 | shares | 250,000 |
Outstanding Options Weighted Average Exercise Price: $4.02 | $ 4.02 |
Outstanding Options Aggregate Intrinsic Value: $4.02 | $ | $ 0 |
Outstanding Options Weighted Average Remaining Contractual Term (Years): $4.02 | 4 years 25 days |
Exercisable Options Number: $4.02 | shares | 250,000 |
Exercisable Options Weighted Average Exercise Price: $4.02 | $ 4.02 |
Exercisable Options Aggregate Intrinsic Value: $4.02 | $ | $ 0 |
Exercisable Options Weighted Average Remaining Contractual Term (Years): $4.02 | 4 years 25 days |
Outstanding Options Number: $1.92 - $4.02 | shares | 4,369,565 |
Outstanding Options Weighted Average Exercise Price: $1.92 - $4.02 | $ 3.09 |
Outstanding Options Aggregate Intrinsic Value: $1.92 - $4.02 | $ | $ 0 |
Outstanding Options Weighted Average Remaining Contractual Term (Years): $1.92 - $4.02 | 5 years 10 months 2 days |
Exercisable Options Number: $1.92 - $4.02 | shares | 4,369,565 |
Exercisable Options Weighted Average Exercise Price: $1.92 - $4.02 | $ 3.09 |
Exercisable Options Aggregate Intrinsic Value: $1.92 - $4.02 | $ | $ 0 |
Exercisable Options Weighted Average Remaining Contractual Term (Years): $1.92 - $4.02 | 5 years 10 months 2 days |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
[custom:OutstandingOptionsExercisePriceRange-0] | $ 1.92 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
[custom:OutstandingOptionsExercisePriceRange-0] | $ 4.02 |
Stock Based Compensation Plan_2
Stock Based Compensation Plans (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Maximum number of options available under the plan | 8,750,000 | |
Options available for grant | 2,307,000 | |
Maximum term of options | 10 years | |
Non-cash compensation expense | $ 0 | $ 31,000 |
Amount payable in event of change of control | $ 7,100,000 |
Income tax benefit (Details)
Income tax benefit (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit based on Canadian tax rates | $ 1,078,689 | $ 1,619,742 |
Income Tax Benefi tBased On Canadian Tax Rates Percentage | 25.00% | 25.00% |
Different tax rates on foreign subsidiaries | $ (67,674) | $ (219,996) |
Different Tax Rates On Foreign Subsidiaries Percentage | (2.00%) | (3.00%) |
Non-deductible expenses | $ (9,970) | $ (8,229) |
Nondeductible Expenses Percentage | (0.00%) | |
Change in valuation allowance and other | $ (290,855) | $ (1,391,517) |
Change In Valuation Allowance And Other Percentage | (7.00%) | (22.00%) |
Income tax benefit | $ 710,190 | |
Income Tax Benefit Percent | 16.00% |
Deferred income tax (Details)
Deferred income tax (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred income tax assets | ||
Net operating loss carry forwards | $ 33,639,056 | $ 34,569,939 |
Property, Plant and Equipment | 4,742,791 | 4,742,961 |
Other | 1,732,411 | 1,623,503 |
Total deferred income tax assets | 40,114,258 | 40,936,403 |
Valuation allowance | (39,382,232) | (40,915,022) |
Deferred income tax assets net of valuation allowance | 732,026 | 21,381 |
Deferred income tax liabilities | ||
Other | (21,836) | (21,381) |
Net deferred income tax asset | $ 710,190 |
U.S. and Canadian tax loss carr
U.S. and Canadian tax loss carry forwards (Details) | Jun. 30, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Canadian tax loss carryforward expiring 2026 | $ 1,919,591 |
Canadian tax loss carryforward expiring 2027 | 3,562,511 |
Canadian tax loss carryforward expiring 2028 | 13,578,667 |
Canadian tax loss carryforward expiring 2029 | 12,868,603 |
Canadian tax loss carryforward expiring 2030 | 15,898,444 |
Canadian tax loss carryforward expiring 2031 | 17,802,576 |
Canadian tax loss carryforward expiring 2032 | 5,165,282 |
Canadian tax loss carryforward expiring 2033 | 7,509,257 |
Canadian tax loss carryforward expiring 2034 | 8,700,613 |
Canadian tax loss carryforward expiring 2035 | 12,419,483 |
Canadian tax loss carryforward expiring 2036 | 14,765,458 |
Canadian tax loss carryforward expiring 2037 | 11,135,181 |
Canadian tax loss carryforward expiring 2038 | 1,065,606 |
Canadian tax loss carryforward expiring 2039 | 2,777,275 |
Canadian tax loss carryforward expiring 2040 | 2,546,919 |
UsTax Loss Carryforward | 3,381,856 |
Total US tax loss carryforward | 3,381,856 |
Total Canadian tax loss carryforward | $ 131,715,466 |
Income Tax (Details Narrative)
Income Tax (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit recorded by the Company | $ 700,000 | $ 0 | |
Deferred Tax Assets, Net of Valuation Allowance | $ 700,000 | ||
The Company's income tax receivable | 7,600,000 | ||
The Company's income tax receivable relating to 2019 revisions of estimates | $ 4,300,000 |
Return of Capital (Details Narr
Return of Capital (Details Narrative) $ / shares in Units, $ in Millions | 1 Months Ended |
Jun. 30, 2019USD ($)$ / shares | |
Return Of Capital | |
Returned to shareholders | $ | $ 76 |
Returned to shareholders per share | $ / shares | $ 0.76 |