Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 20, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Searchlight Minerals Corp. | |
Entity Central Index Key | 1,084,226 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | SRCH | |
Entity Common Stock, Shares Outstanding | 154,306,537 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash | $ 1,230,358 | $ 584,976 |
Prepaid expenses | 96,373 | 75,214 |
Assets held for sale | 0 | 227,500 |
Total current assets | 1,326,731 | 887,690 |
Property and equipment, net | 6,654,223 | 7,717,762 |
Assets held for sale, non-current portion | 0 | 227,500 |
Restricted cash | 227,345 | 0 |
Deferred financing fees | 79,073 | 97,401 |
Reclamation bond and deposits, net | 14,566 | 14,566 |
Total non-current assets | 136,452,964 | 137,499,276 |
Total assets | 137,779,695 | 138,386,966 |
Current liabilities | ||
Accounts payable and accrued liabilities | 976,433 | 897,951 |
Accounts payable - related party | 339,111 | 21,539 |
VRIC payable, current portion - related party | 569,288 | 315,552 |
Convertible debt, net of discount | 3,263,853 | 0 |
Derivative liability - convertible debt | 465,359 | 0 |
Total current liabilities | 5,614,044 | 1,235,042 |
Long-term liabilities | ||
VRIC payable, net of current portion - related party | 128,856 | 382,592 |
Convertible notes, net of discount | 0 | 3,087,380 |
Derivative liability - convertible debt | 0 | 1,218,619 |
Deferred tax liability | 48,224,926 | 27,547,468 |
Total long-term liabilities | 48,353,782 | 32,236,059 |
Total liabilities | $ 53,967,826 | $ 33,471,101 |
Commitments and contingencies - Note 16 | ||
Stockholders' equity | ||
Common stock, $0.001 par value; 400,000,000 shares authorized, 154,306,537 and 144,153,748 shares, respectively, issued and outstanding | $ 154,306 | $ 144,153 |
Additional paid-in capital | 163,940,513 | 160,177,521 |
Accumulated deficit | (80,282,950) | (55,405,809) |
Total stockholders' equity | 83,811,869 | 104,915,865 |
Total liabilities and stockholders' equity | 137,779,695 | 138,386,966 |
Slag Project [Member] | ||
Current assets | ||
Mineral properties | 121,865,365 | 121,829,655 |
Smelter Site and Slag Pile [Member] | ||
Current assets | ||
Land | 5,916,150 | 5,916,150 |
Remaining Amount [Member] | ||
Current assets | ||
Land | $ 1,696,242 | $ 1,696,242 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 154,306,537 | 144,153,748 |
Common stock, shares outstanding | 154,306,537 | 144,153,748 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Operating expenses | ||||
Administrative - Clarkdale site | 26,682 | 34,080 | 91,244 | 83,912 |
Loss (gain) on asset dispositions | 0 | 18,095,234 | (2,548) | 18,140,349 |
Depreciation | 352,988 | 378,181 | 1,068,325 | 1,136,174 |
Total operating expenses | 1,751,111 | 19,525,152 | 4,545,628 | 22,866,435 |
Loss from operations | (1,751,111) | (19,525,152) | (4,545,628) | (22,866,435) |
Other income (expense) | ||||
Rental revenue | 5,100 | 6,105 | 15,300 | 21,775 |
Other expense | (10,591) | (18,659) | (10,591) | (18,659) |
Change in fair value of derivative liabilities | 224,943 | 125,635 | 753,260 | 329,430 |
Interest expense | (139,820) | (131,735) | (413,475) | (391,430) |
Interest and dividend income | 791 | 0 | 1,451 | 516 |
Total other income (expense) | 80,423 | (18,654) | 345,945 | (58,368) |
Loss before income taxes | (1,670,688) | (19,543,806) | (4,199,683) | (22,924,803) |
Income tax (expense) benefit | (21,795,143) | 7,440,766 | (20,677,458) | 8,747,063 |
Discontinued operations | ||||
Net loss | (23,465,831) | (12,103,040) | (24,877,141) | (14,177,740) |
Comprehensive loss | $ (23,465,831) | $ (12,103,040) | $ (24,877,141) | $ (14,177,740) |
Loss per common share - basic and diluted | ||||
Net loss | $ (0.15) | $ (0.09) | $ (0.17) | $ (0.10) |
Weighted average common shares outstanding - | ||||
Basic | 153,298,984 | 135,768,318 | 149,390,171 | 135,768,318 |
Diluted | 153,298,984 | 135,768,318 | 149,390,171 | 135,768,318 |
All Other [Member] | ||||
Operating expenses | ||||
Mineral exploration and evaluation expenses | $ 674,637 | $ 396,409 | $ 1,770,453 | $ 1,482,176 |
General and administrative | 590,130 | 504,629 | 1,285,513 | 1,662,929 |
Related Party Transactions [Member] | ||||
Operating expenses | ||||
Mineral exploration and evaluation expenses | 60,000 | 75,983 | 180,360 | 231,543 |
General and administrative | $ 46,674 | $ 40,636 | $ 152,281 | $ 129,352 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (24,877,141) | $ (14,177,740) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,068,325 | 1,136,174 |
Stock based compensation | 228,732 | 62,947 |
Stock based expenses | 41,588 | 0 |
(Gain) loss on asset dispositions and impairment | (2,548) | 18,140,349 |
Amortization of prepaid expense | 235,024 | 263,493 |
Amortization of debt financing fees and debt discount | 194,801 | 180,197 |
Deferred income taxes | 20,677,458 | (8,747,063) |
Change in fair value of derivative liabilities | (753,260) | (329,430) |
Loss on interest settled in shares | 10,666 | 19,005 |
Accounts payable settlement | (378,136) | 0 |
Changes in operating assets and liabilities: | ||
Restricted cash | (227,345) | 0 |
Prepaid expenses | (256,183) | (204,576) |
Reclamation bond and deposits | 0 | (325) |
Accounts payable and accrued liabilities | 982,360 | 1,236,483 |
Net cash used in operating activities | (3,055,659) | (2,420,486) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from property and equipment dispositions, net | 457,548 | 245,943 |
Purchase of property and equipment | (4,786) | (64,206) |
Net cash provided by investing activities | 452,762 | 181,737 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from stock issuance | 3,270,451 | 575,000 |
Stock issuance costs | (22,172) | 0 |
Proceeds from convertible notes | 0 | 69,000 |
Payments on VRIC payable - related party | 0 | (120,000) |
Net cash provided by financing activities | 3,248,279 | 524,000 |
NET CHANGE IN CASH | 645,382 | (1,714,749) |
CASH AT BEGINNING OF PERIOD | 584,976 | 2,065,824 |
CASH AT END OF PERIOD | 1,230,358 | 351,075 |
SUPPLEMENTAL INFORMATION | ||
Interest paid, net of capitalized amounts | 46,011 | 154,735 |
Income taxes paid | 0 | 0 |
Non-cash investing and financing activities: | ||
Common stock subscribed in satisfaction of accrued interest | 0 | 126,700 |
Accrued Liabilities [Member] | ||
Non-cash investing and financing activities: | ||
Common stock subscribed in satisfaction of accrued interest | 243,880 | 0 |
Accounts Payable [Member] | ||
Non-cash investing and financing activities: | ||
Accounts payable satisifed by contribution of capital | $ 0 | $ 50,000 |
DESCRIPTION OF BUSINESS, HISTOR
DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES | 1. DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES - Searchlight Minerals Corp. (the “Company”) has been in the exploration stage since its formation, and the Company has not yet realized any revenues from its planned operations. The Company is primarily focused on the exploration, acquisition and development of mining and mineral properties. Upon the location of commercially minable reserves, the Company plans to prepare for mineral extraction and enter the development stage. - The Company was incorporated on January 12, 1999 pursuant to the laws of the State of Nevada under the name L.C.M. Equity, Inc. From 1999 to 2005, the Company operated primarily as a biotechnology research and development company with its headquarters in Canada and an office in the United Kingdom (the “UK”). On November 2, 2001, the Company entered into an acquisition agreement with Regma Bio Technologies, Ltd. pursuant to which Regma Bio Technologies, Ltd. entered into a reverse merger with the Company with the surviving entity named “Regma Bio Technologies Limited”. On November 26, 2003, the Company changed its name from “Regma Bio Technologies Limited” to “Phage Genomics, Inc.” (“Phage”). In February 2005, the Company announced its reorganization from a biotechnology research and development company to a company focused on the development and acquisition of mineral properties and its Board of Directors approved a change in its name from Phage to "Searchlight Minerals Corp.” effective June 23, 2005. - The accompanying consolidated financial statements were prepared on a going concern basis in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The going concern basis of presentation assumes that the Company will continue in operation for the next twelve months and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business and does not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the Company’s inability to continue as a going concern. The Company’s history of losses, working capital deficit, capital deficit, minimal liquidity and other factors raise substantial doubt about the Company’s ability to continue as a going concern. In order for the Company to continue operations beyond the next twelve months and be able to discharge its liabilities and commitments in the normal course of business it must raise additional equity or debt capital and continue cost cutting measures. There can be no assurance that the Company will be able to achieve sustainable profitable operations or obtain additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to management. If the Company continues to incur operating losses and does not raise sufficient additional capital, material adverse events may occur including, but not limited to, 1) a reduction in the nature and scope of the Company’s operations and 2) the Company’s inability to fully implement its current business plan. There can be no assurance that the Company will successfully improve its liquidity position. The accompanying consolidated financial statements do not reflect any adjustments that might be required resulting from the adverse outcome relating to this uncertainty. As of September 30, 2015, the Company had cumulative net losses of $ 80,282,950 24,877,141 3,055,659 4,287,313 To address liquidity constraints, the Company will seek additional sources of capital through the issuance of equity or debt financing. Additionally, the Company has reduced expenses and elected to defer payment of certain obligations. Cash conservation measures include, but are not limited to, the deferred payment where available of outsourced consulting fees, current and future board fees, officer salaries, monthly professional fees, and the Verde River Iron Company, LLC (“VRIC”) monthly payable. These activities have reduced the required cash outlay of the Company’s business significantly. The Company is focused on continuing to reduce costs and obtaining additional funding. There is no assurance that such funding will be available on terms acceptable to the Company, or at all. If the Company raises additional funds by selling additional shares of capital stock, securities convertible into shares of capital stock or the issuance of convertible debt, the ownership interest of the Company’s existing common stock holders will be diluted. - The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company’s fiscal year-end is December 31. These condensed consolidated financial statements have been prepared without audit in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments and disclosures necessary for the fair presentation of these interim statements have been included. All such adjustments are, in the opinion of management, of a normal recurring nature with the exception of recording a full valuation allowance on certain deferred tax assets as discussed in Note 15. The results reported in these interim condensed consolidated financial statements are not necessarily indicative of the results that may be reported for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on April 13, 2015. - The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Clarkdale Minerals, LLC (“CML”) and Clarkdale Metals Corp. (“CMC”). Significant intercompany accounts and transactions have been eliminated. - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant. Significant areas requiring management’s estimates and assumptions include the valuation of stock-based compensation and derivative liabilities, impairment analysis of long-lived assets, and realizability of deferred tax assets. Actual results could differ from those estimates. - The Company capitalizes interest cost related to acquisition, development and construction of property and equipment which is designed as integral parts of the manufacturing process. The capitalized interest is recorded as part of the asset it relates to and will be amortized over the asset’s useful life once production commences. - Costs of acquiring mineral properties are capitalized upon acquisition. Exploration costs and costs to maintain mineral properties are expensed as incurred while the project is in the exploration stage. Once mineral reserves are established, development costs and costs to maintain mineral properties are capitalized as incurred while the property is in the development stage. When a property reaches the production stage, the related capitalized costs are amortized using the units-of-production method over the proven and probable reserves. - Exploration expenditures incurred prior to entering the development stage are expensed and included in mineral exploration and evaluation expense. 3 15 - The tests for long-lived assets in the exploration, development or production stage that would have a value beyond proven and probable reserves would be monitored for impairment based on factors such as current market value of the mineral property and results of exploration, future asset utilization, business climate, mineral prices and future undiscounted cash flows expected to result from the use of the related assets. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated future net cash flows expected to be generated by the asset, including evaluating its reserves beyond proven and probable amounts. The Company's policy is to record an impairment loss in the period when it is determined that the carrying amount of the asset may not be recoverable either by impairment or by abandonment of the property. The impairment loss is calculated as the amount by which the carrying amount of the assets exceeds its fair value. Deferred financing fees represent fees paid in connection with obtaining debt financing. These fees are amortized using the effective interest method over the term of the financing. The Company evaluates the embedded features of convertible notes to determine if they are required to be bifurcated and recorded as a derivative liability. If more than one feature is required to be bifurcated, the features are accounted for as a single compound derivative. The fair value of the compound derivative is recorded as a derivative liability and a debt discount. The carrying value of the convertible notes is recorded on the date of issuance at its original value less the fair value of the compound derivative. The derivative liability is measured at fair value on a recurring basis with changes reported in other income (expense). Fair value is determined using a model which incorporates estimated probabilities and inputs calculated by both the Binomial Lattice model and present values. The debt discount is amortized to non-cash interest expense using the effective interest method over the life of the notes. If a conversion of the underlying note occurs, a proportionate share of the unamortized amount is immediately expensed. - For its exploration stage properties, the Company accrues the estimated costs associated with environmental remediation obligations in the period in which the liability is incurred or becomes determinable. Until such time that a project life is established, the Company records the corresponding cost as an exploration stage expense. The costs of future expenditures for environmental remediation are not discounted to their present value unless subject to a contractually obligated fixed payment schedule. Future reclamation and environmental-related expenditures are difficult to estimate in many circumstances due to the early stage nature of the exploration project, the uncertainties associated with defining the nature and extent of environmental disturbance, the application of laws and regulations by regulatory authorities and changes in reclamation or remediation technology. The Company periodically reviews accrued liabilities for such reclamation and remediation costs as evidence indicating that the liabilities have potentially changed becomes available. Changes in estimates are reflected in the consolidated statement of operations in the period an estimate is revised. The Company is in the exploration stage and is unable to determine the estimated timing of expenditures relating to reclamation accruals. It is reasonably possible that the ultimate cost of reclamation and remediation could change in the future and that changes to these estimates could have a material effect on future operating results as new information becomes known. - The Company’s financial instruments consist principally of derivative liabilities and the VRIC payable. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels defined as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The Company’s financial instruments consist of the VRIC payable (described in Note 9), derivative liabilities and convertible notes (described in Note 7). The VRIC payable and the convertible notes are classified within Level 2 of the fair value hierarchy. The fair value of the VRIC payable approximates carrying value as the imputed interest rate is considered to approximate a market interest rate. The fair value of the convertible notes approximates carrying value as the interest rate is considered to approximate a market interest rate. The Company calculates the fair value of its derivative liabilities using various models which are all Level 3 inputs. The fair value of the derivative warrant liability (described in Note 6) is calculated using the Binomial Lattice model, and the fair value of the derivative liability - convertible notes (described in Note 8) is calculated using a model which incorporates estimated probabilities and inputs calculated by both the Binomial Lattice model and present values. The change in fair value of the derivative liabilities is classified in other income (expense) in the consolidated statement of operations. The Company generally does not use derivative financial instruments to hedge exposures to cash flow, market or foreign currency risks. There have been no changes in the valuation techniques used for the derivative liabilities. The Company does not have any non-financial assets or liabilities that it measures at fair value. During the nine months ended September 30, 2015 and 2014, there were no transfers of assets or liabilities between levels. 73,162,932 37,054,430 - Stock-based compensation awards are recognized in the consolidated financial statements based on the grant date fair value of the award which is estimated using the Binomial Lattice option pricing model. The Company believes that this model provides the best estimate of fair value due to its ability to incorporate inputs that change over time, such as volatility and interest rates, and to allow for the actual exercise behavior of option holders. The compensation cost is recognized over the requisite service period which is generally equal to the vesting period. Upon exercise, shares issued will be newly issued shares from authorized common stock. The fair value of performance-based stock option grants is determined on their grant date through the use of the Binomial Lattice option pricing model. The total value of the award is recognized over the requisite service period only if management has determined that achievement of the performance condition is probable. The requisite service period is based on management’s estimate of when the performance condition will be met. Changes in the requisite service period or the estimated probability of achievement can materially affect the amount of stock-based compensation recognized in the financial statements. The Company accounts for stock options issued to non-employees based on the estimated fair value of the awards using the Binomial Lattice option pricing model. The measurement of stock-based compensation to non-employees is subject to periodic adjustments as the underlying equity instruments vest, and the resulting change in value, if any, is recognized in the Company’s consolidated statements of operations during the period the related services are rendered. - For interim reporting periods, the Company uses the annualized effective tax rate (“AETR”) method to calculate its income tax provision. Under this method, the AETR is applied to the interim year-to-date pre-tax losses to determine the income tax benefit or expense for the year-to-date period. The income tax benefit or expense for a quarter represents the difference between the year-to-date income tax benefit or expense for the current year-to-date period less such amount for the immediately preceding year-to-date period. Management considers the impact of all known events in its estimation of the Company’s annual operating results and AETR. The Company follows the liability method of accounting for income taxes. This method recognizes certain temporary differences between the financial reporting basis of liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset as measured by the statutory tax rates in effect. The effect of a change in tax rates is recognized in operations in the period that includes the enactment date. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. For acquired properties that do not constitute a business, a deferred income tax liability is recorded on GAAP basis over income tax basis using statutory federal and state rates. The resulting estimated future income tax liability associated with the temporary difference between the acquisition consideration and the tax basis is computed in accordance with Accounting Standards Codification (“ASC”) 740-10-25-51, Acquired Temporary Differences in Certain Purchase Transactions that are Not Accounted for as Business Combinations - From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards did not or will not have a material impact on the Company’s consolidated financial statements upon adoption. In April 2015, the FASB issued Accounting Standard Update (“ASU”) 2015-03, Interest Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015, and early adoption is permitted. The Company is currently assessing the impact, if any, of implementing this guidance on its consolidated financial position, results of operations and liquidity. In November 2014, the FASB issued ASU 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. The ASU clarifies how current guidance should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of a host contract. The ASU is effective for fiscal years and interim periods beginning after December 15, 2015. The Company is currently assessing the impact, if any, of implementing this guidance on its consolidated financial position, results of operations and liquidity. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern. The new standard requires management of public and private companies to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The new standard is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Adoption of the new guidance is not expected to have an impact on the consolidated financial position, results of operations or cash flows. In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, which is effective for financial statements issued for interim and annual periods beginning on or after December 15, 2015. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and should not be reflected in the estimate of the grant-date fair value of the award. Adoption of the new guidance is not expected to have an impact on the consolidated financial position, results of operations or cash flows. |
RESTRICTED CASH
RESTRICTED CASH | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
RESTRICTED CASH | 2. RESTRICTED CASH At September 30, 2015, restricted cash amounted to $ 227,345 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2015 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | 3. PROPERTY AND EQUIPMENT September 30, 2015 December 31, 2014 Accumulated Net Book Accumulated Net Book Cost Depreciation Value Cost Depreciation Value Furniture and fixtures $ 38,255 $ (37,868) $ 387 $ 38,255 $ (37,476) $ 779 Lab equipment 249,061 (249,061) - 249,061 (247,356) 1,705 Computers and equipment 71,407 (59,926) 11,481 68,558 (54,025) 14,533 Vehicles 47,675 (45,983) 1,692 47,675 (45,458) 2,217 Slag conveyance equipment 300,916 (300,916) - 300,916 (300,916) - Demo module building 6,630,063 (4,361,115) 2,268,948 6,630,063 (3,863,860) 2,766,203 Grinding circuit 913,679 (19,167) 894,512 913,679 (11,667) 902,012 Extraction circuit 938,352 (415,750) 522,602 938,352 (274,997) 663,355 Leaching and filtration 1,300,618 (1,235,587) 65,031 1,300,618 (1,040,494) 260,124 Fero-silicate storage 4,326 (2,055) 2,271 4,326 (1,731) 2,595 Electrowinning building 1,492,853 (709,105) 783,748 1,492,853 (597,141) 895,712 Site improvements 1,677,844 (684,647) 993,197 1,675,906 (591,259) 1,084,647 Site equipment 360,454 (352,114) 8,340 360,454 (338,588) 21,866 Construction in progress 1,102,014 - 1,102,014 1,102,014 - 1,102,014 $ 15,127,517 $ (8,473,294) $ 6,654,223 $ 15,122,730 $ (7,404,968) $ 7,717,762 Depreciation expense was $ 352,988 378,181 1,068,325 1,136,174 The Company rents corporate office space on month-to-month terms from a related party as further discussed in Note 19. Total rent expense was $ 5,068 7,305 15,070 24,219 On March 9, 2015, the Company completed the sale of three parcels of land for net proceeds of $ 457,548 |
CLARKDALE SLAG PROJECT
CLARKDALE SLAG PROJECT | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
CLARKDALE SLAG PROJECT | 4. CLARKDALE SLAG PROJECT On February 15, 2007, the Company completed a merger with Transylvania International, Inc. (“TI”) which provided the Company with 100 50 The Company also formed a second wholly owned subsidiary, CMC, for the purpose of developing a processing plant at the Clarkdale Slag Project. The Company believes the acquisition of the Clarkdale Slag Project was beneficial because it provides for 100% ownership of the properties, thereby eliminating the need to finance and further develop the projects in a joint venture environment. This merger was treated as a statutory merger for tax purposes whereby CML was the surviving merger entity. The Company applied Emerging Issues Task Force (“EITF”) 98-03 (which has been superseded by ASC 805-10-25-1) with regard to the acquisition of the Clarkdale Slag Project. The Company determined that the acquisition of the Clarkdale Slag Project did not constitute an acquisition of a business as that term is defined in ASC 805-10-55-4, and the Company recorded the acquisition as a purchase of assets. The $ 130.3 Mining Business Combinations Initial Recognition Income Taxes Overall Recognition Acquired Temporary Differences in Certain Purchase Transactions that are Not Accounted for as Business Combinations 5,916,150 3,300,000 309,750 120,766,877 Use Rights Closing of the TI acquisition occurred on February 15, 2007, (the “Closing Date”) and was subject to, among other things, the following terms and conditions: a) 200,000 b) The Company paid $ 9,900,000 c) The Company issued 16,825,000 3.975 In addition to the cash and equity consideration paid and issued upon closing, the acquisition agreement contains the following payment terms and conditions: d) The Company agreed to continue to pay VRIC $ 30,000 90 The acquisition agreement also contains the following additional contingent payment terms which are based on the Project Funding Date as defined in the agreement: e) The Company has agreed to pay VRIC $ 6,400,000 f) The Company has agreed to pay VRIC a minimum annual royalty of $ 500,000 2.5 500,000 500,000 g) The Company has agreed to pay VRIC an additional amount of $ 3,500,000 Under the original JV Agreement, the Company agreed to pay NMC a 5 50 50 2.5 15,000 Purchase price: Cash payments $ 10,100,000 Joint venture option acquired in 2005 for cash 690,000 Warrants issued for joint venture option 1,918,481 Common stock issued 66,879,375 Monthly payments, current portion 167,827 Monthly payments, net of current portion 2,333,360 Acquisition costs 127,000 Total purchase price 82,216,043 Net deferred income tax liability assumed - Clarkdale Slag Project 48,076,734 Total $ 130,292,777 The following table reflects the components of the Clarkdale Slag Project: Allocation of acquisition cost: Clarkdale Slag Project (including net deferred income tax liability assumed of $48,076,734) $ 120,766,877 Land - smelter site and slag pile 5,916,150 Land 3,300,000 Income property and improvements 309,750 Total $ 130,292,777 The Company agreed to continue to pay VRIC $ 30,000 1,098,488 1,062,778 The following table sets forth the change in the Slag Project for the nine month period ended September 30, 2015 and the year ended December 31, 2014: September 30, December 31, 2015 2014 Slag Pile, beginning balance $ 121,829,655 $ 121,759,811 Capitalized interest costs 35,710 69,844 Slag Pile, ending balance $ 121,865,365 $ 121,829,655 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9 Months Ended |
Sep. 30, 2015 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities at September 30, 2015 and December 31, 2014 consisted of the following: September 30, December 31, Trade accounts payable $ 583,058 $ 728,021 Accrued compensation and related taxes 347,247 88,293 Accrued interest 46,128 81,637 $ 976,433 $ 897,951 Accounts payable related party are discussed in Note 19. |
DERIVATIVE WARRANT LIABILITY
DERIVATIVE WARRANT LIABILITY | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE WARRANT LIABILITY | 6. DERIVATIVE WARRANT LIABILITY Related to a private placement completed on November 12, 2009, the Company issued 6,341,263 November 12, 2012 1.85 The Company determined that the warrants were not afforded equity classification because the warrants are not considered to be indexed to the Company’s own stock due to the anti-dilution provisions. In addition, the Company determined that the anti-dilution provisions shield the warrant holders from the dilutive effects of subsequent security issuances and therefore the economic characteristics and risks of the warrants are not clearly and closely related to the Company’s common stock. Accordingly, the warrants are treated as a derivative liability and are carried at fair value. On November 1, 2012 November 11, 2014 November 12, 2015 November 11, October 25, November 1, 2014 2013 2012 Risk-free interest rate 0.14% 0.11% 0.19% Expected volatility 142.72% 114.79% 94.94% Expected life (years) 1.0 1.0 1.0 As of September 30, 2015, the cumulative adjustment to the warrants was as follows: (i) the exercise price was adjusted from $ 1.85 1.27 2,805,766 4,252,883 1.29 993,332 The total warrants accounted for as a derivative liability were 9,147,029 8,153,697 September 30, December 31, 2015 2014 Beginning balance $ - $ (81,574) Adjustment to warrants - - Change in fair value - 81,574 Ending balance $ - $ - September 30, December 31, 2015 2014 Dividend yield - - Expected volatility 30.46% - 65.70% 29.38% - 153.76% Risk-free interest rate 0.00% - 0.14% 0.02% - 0.26% Expected life (years) 0.10 - 0.60 0.10 1.0 The expected volatility is based on the historical volatility levels on the Company’s common stock. The risk-free interest rate is based on the implied yield available on US Treasury zero-coupon issues over equivalent lives of the options. The expected life is impacted by all of the underlying assumptions and calibration of the Company’s model. Significant increases or decreases in inputs would result in a significantly lower or higher fair value measurement. |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 9 Months Ended |
Sep. 30, 2015 | |
Convertible Debt [Abstract] | |
CONVERTIBLE NOTES | 7. CONVERTIBLE NOTES On September 18, 2013, the Company completed a private placement of secured convertible notes (the “Notes”) to certain investors resulting in gross proceeds of $ 4,000,000 0.40 7 9 227,345 The Company has agreed not to incur any additional secured indebtedness or any other indebtedness with a maturity prior to that of the Notes without the written consent of the holders of the majority-in-interest of the Notes. In the event of a change of control of the Company, the Notes will become due and payable at 120 600,000 69,000 At September 30, 2015, the Notes were convertible into 10,433,333 0.39 At issuance, the fair value of the compound derivative was $ 1,261,285 September 30, December 31, 2015 2014 Convertible notes at face value $ 4,069,000 $ 4,000,000 Issuance of additional notes - 69,000 Unamortized discount (805,147) (981,620) Convertible notes, net of discount $ 3,263,853 $ 3,087,380 The Company incurred $ 126,446 15.4 September 30, September 30, 2015 2014 Interest rate at 7% $ 213,612 $ 209,798 Amortization of debt discount 176,473 163,244 Amortization of deferred financing fees 18,327 16,953 Total interest expense on convertible notes $ 408,412 $ 389,995 |
DERIVATIVE LIABILITY - CONVERTI
DERIVATIVE LIABILITY - CONVERTIBLE NOTES | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Liability And Convertible Debt [Abstract] | |
DERIVATIVE LIABILITY - CONVERTIBLE NOTES | 8. DERIVATIVE LIABILITY CONVERTIBLE NOTES As further discussed in Note 7, the Company has issued $ 4,069,000 0.39 The Notes have several embedded conversion and redemption features. The Company determined that two of the features were required to be bifurcated and accounted for under derivative accounting as follows: 1. The embedded conversion feature includes a provision for the adjustment to the conversion price if the Company issues common stock or common stock equivalents at a price less than the exercise price. Derivative accounting was required for this feature due to this anti-dilution provision. 2. One embedded redemption feature requires the Company to pay 120 These two embedded features have been accounted for together as a single compound derivative. The Company estimated the fair value of the compound derivative using a model with estimated probabilities and inputs calculated by the Binomial Lattice model and present values. The assumptions included in the calculations are highly subjective and subject to interpretation. Assumptions used for the nine months ended September 30, 2015 and 2014 included redemption and conversion estimates/behaviors, estimates regarding future anti-dilutive financing agreements and the following other significant estimates: September 30, September 30, 2015 2014 Expected volatility 101.46 - 105.61% 96.46 107.84% Risk-free interest rate 0.92 - 1.13% 1.25 1.73% Expected life (years) 2.0 2.5 - 3.0 The expected volatility is based on the historical volatility levels on the Company’s common stock. The risk-free interest rate is based on the implied yield available on US Treasury zero-coupon issues over equivalent lives of the options. The expected life is impacted by all of the underlying assumptions and calibration of the Company’s model. Significant increases or decreases in inputs would result in a significantly lower or higher fair value measurement. The following table sets forth the changes in the fair value of the derivative liability for the nine month period ended September 30, 2015 and the year ended December 31, 2014: September 30, December 31, 2015 2014 Beginning balance $ 1,218,619 $ 755,709 Issuance of convertible debt - 9,519 Change in fair value (753,260) 453,391 Ending balance $ 465,359 $ 1,218,619 |
VRIC PAYABLE - RELATED PARTY
VRIC PAYABLE - RELATED PARTY | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
VRIC PAYABLE - RELATED PARTY | 9. VRIC PAYABLE - RELATED PARTY Pursuant to the Clarkdale acquisition agreement, the Company agreed to pay VRIC $ 30,000 The Company has recorded a liability for this commitment using imputed interest based on its best estimate of its incremental borrowing rate. The effective interest rate used was 8.00 2,501,187 1,128,813 10 Interest costs related to this obligation were $ 10,342 16,753 35,710 54,566 255,000 2016 $ 630,000 2017 131,195 Thereafter - Total minimum payments 761,195 Less: amount representing interest (63,051) Present value of minimum payments 698,144 VRIC payable, current portion 569,288 VRIC payable, net of current portion $ 128,856 The acquisition agreement also contains payment terms which are based on the Project Funding Date as defined in the agreement. The terms and conditions of these payments are discussed in more detail in Notes 4 and 16. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2015 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 10. STOCKHOLDERS’ EQUITY During the nine month period ended September 30, 2015, the Company’s stockholders’ equity activity consisted of the following: a) On September 18, 2015, the Company issued 327,900 114,765 0.35 0.50 10,666 b) On July 30, 2015, the Company completed a private placement offering for gross proceeds of $ 775,400 2,215,429 0.35 0.50 9,468 c) On May 21, 2015, the Company completed a private placement offering for gross proceeds of $ 995,050 2,843,000 0.35 0.50 12,704 d) On March 25, 2015, the Company completed a private placement offering for gross proceeds of $1,500,000 with Luxor. A total of 4,250,000 units will be issued at a price of $0.3529. Each unit consists of one share of the Company’s common stock and one share purchase warrant exercisable at $0.50 per share. Such warrants will expire five years from the date of issuance and are considered to be indexed to the Company’s common stock. e) On March 18, 2015, the Company issued 516,460 0.25 129,115 During the nine month period ended September 30, 2014, the Company’s stockholders’ equity activity consisted of the following: a) On September 9, 2014, the Company approved the issuance of a private placement of the Company’s securities at a purchase price of $0.20 per Unit. Each Unit consists of one share of the Company’s common stock and one half of a common stock purchase warrant exercisable at $0.30 per share and expiring five years from the date of issuance. As of September 30, 2014, the Company had received subscriptions for the purchase of these Units. $575,000 of proceeds were received by September 30, 2014 and were recorded as common stock subscribed. Additionally, 633,000 Units were subscribed to by convertible note holders in consideration of $126,700 of interest payments due on September 18, 2014. The first closing of the private placement was completed on October 24, 2014. Shares Underlying Outstanding Warrants Exercise Price Expiration Date 3,410,526 $ 1.27 November 2015 5,736,501 1.29 November 2015 7,042,387 1.85 November 2015 1,000,000 0.375 June 2016 3,000,000 0.375 June 2017 316,752 0.30 September 2019 2,197,496 0.30 October 2019 1,000,000 0.30 November 2019 1,498,750 0.30 December 2019 3,981,000 0.50 December 2019 4,250,000 0.50 March 2020 2,843,000 0.50 May 2020 2,215,429 0.50 July 2020 327,900 0.50 September 2020 38,819,741 Subsequent to quarter end, all of the warrants scheduled to expire in November 2015 were extended to November 30, 2016 as further explained in Note 20. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | 11. STOCK-BASED COMPENSATION Stock-based compensation includes grants of stock options and purchase warrants to eligible directors, employees and consultants as determined by the board of directors. Stock option plans - The Company has adopted several stock option plans, all of which have been approved by the Company’s stockholders that authorize the granting of stock option awards subject to certain conditions. At September 30, 2015, the Company had 5,425,576 At September 30, 2015, the Company had the following stock option plans available: ⋅ 2009 Incentive Plan The terms of the 2009 Incentive Plan, as amended, allow for up to 7,250,000 500,000 110 3,437,500 0.68 3,812,500 3,397,500 ⋅ 2009 Directors Plan - The terms of the 2009 Directors Plan, as amended, allow for up to 2,750,000 100 250,000 2,184,877 0.70 565,123 2,138,022 ⋅ 2007 Plan - Under the terms of the 2007 Plan, options to purchase up to 4,000,000 85 2,952,047 0.61 1,047,953 2,763,618 As of September 30, 2015, the Company had granted 15,610,714 0.48 Non-Employee Directors Equity Compensation Policy 9,000 18,000 Stock warrants Valuation of awards September 30, September 30, 2015 2014 Risk-free interest rate 0.24% - 1.75% 0.39% - 1.73% Dividend yield - - Expected volatility 91.23% - 110.32% 98.65% - 105.87% Expected life (years) 0.30 - 4.75 2.00 - 4.25 The expected volatility is based on the historical volatility levels on the Company’s common stock. The risk-free interest rate is based on the implied yield available on US Treasury zero-coupon issues over equivalent lives of the options. The expected life of awards represents the weighted-average period the stock options or warrants are expected to remain outstanding and is a derived output of the Binomial Lattice model. The expected life is impacted by all of the underlying assumptions and calibration of the Company’s model. Stock-based compensation activity During the nine months ended September 30, 2015, the Company granted stock-based awards as follows: a) On September 30, 2015, the Company granted stock options under the 2009 Directors Plan for the purchase of 54,000 0.22 b) On August 28, 2015, the Company granted stock options for the purchase of 3,804,000 0.50 c) On August 28, 2015, the Company granted warrants for the purchase of 2,591,714 0.50 d) On June 30, 2015, the Company granted stock options under the 2009 Directors Plan for the purchase of 54,000 0.25 June 30, 2020 e) On March 31, 2015, the Company granted stock options under the 2009 Directors Plan for the purchase of 54,000 0.33 March 31, 2020 f) On March 23, 2015, the Company’s Board of Directors unilaterally determined to amend 659,890 0.83 31,544 During the nine month period ended September 30, 2014, the Company granted stock-based awards as follows: a) On September 30, 2014, the Company granted stock options under the 2009 Directors Plan for the purchase of 54,000 0.22 b) On June 30, 2014, the Company granted stock options under the 2009 Directors Plan for the purchase of 54,000 0.24 June 30, 2019 c) On March 31, 2014, the Company granted stock options under the 2009 Directors Plan for the purchase of 54,000 0.26 March 31, 2019 d) On January 13, 2014, the Company extended the expiration date of 200,000 5,011 Expenses related to the vesting, modifying and granting of stock-based compensation awards were $ 177,725 11,300 228,732 62,947 Weighted Weighted Average Average Remaining Grant Weighted Contractual Aggregate Number of Date Fair Average Life Intrinsic Shares Value Exercise Price (Years) Value Outstanding, December 31, 2014 17,387,745 $ 0.24 $ 0.55 4.53 Options/warrants granted 6,557,714 0.07 0.49 5.09 Options/warrants expired (35,605) 0.31 0.84 - Options/warrants exercised - - - - Outstanding, September 30, 2015 23,909,854 $ 0.20 $ 0.53 4.12 $ - Exercisable, September 30, 2015 19,805,854 $ 0.21 $ 0.53 3.93 $ - Aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the quarter ended September 30, 2015 in excess of the weighted-average exercise price multiplied by the number of options outstanding or exercisable. Unvested awards - Weighted Number of Average Shares Subject Grant Date to Vesting Fair Value Unvested, December 31, 2014 350,000 $ 0.93 Options/warrants granted 3,804,000 0.09 Options/warrants vested (50,000) 0.55 Unvested, September 30, 2015 4,104,000 $ 0.16 For the three month periods ended September 30, 2015 and 2014, the total grant fair value of shares vested was $ 27,708 27,708 27,708 102,439 262,468 0.23 250,000 0.25 |
STOCKHOLDER RIGHTS AGREEMENT
STOCKHOLDER RIGHTS AGREEMENT | 9 Months Ended |
Sep. 30, 2015 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDER RIGHTS AGREEMENT | 12. STOCKHOLDER RIGHTS AGREEMENT The Company adopted a Stockholder Rights Agreement (the “Rights Agreement”) in August 2009 to protect stockholders from attempts to acquire control of the Company in a manner in which the Company’s Board of Directors determines is not in the best interest of the Company or its stockholders. Under the agreement, each currently outstanding share of the Company’s common stock includes, and each newly issued share will include, a common share purchase right. The rights are attached to and trade with the shares of common stock and generally are not exercisable. The rights will become exercisable if a person or group acquires, or announces an intention to acquire, 15 The Company has agreed to waive the 15 26 |
PROPERTY RENTAL AGREEMENTS AND
PROPERTY RENTAL AGREEMENTS AND LEASES | 9 Months Ended |
Sep. 30, 2015 | |
PROPERTY RENTAL AGREEMENTS AND LEASES [Abstract] | |
PROPERTY RENTAL AGREEMENTS AND LEASES | 13. PROPERTY RENTAL AGREEMENTS AND LEASES The Company, through its subsidiary CML, has the following rental agreement as lessor: Clarkdale Arizona Central Railroad rental CML rents land to Clarkdale Arizona Central Railroad on month-to-month terms at $ 1,700 |
GAIN ON SETTLEMENT
GAIN ON SETTLEMENT | 9 Months Ended |
Sep. 30, 2015 | |
General And Administrative Expense Disclosure [Abstract] | |
General And Administrative Expense Disclosure [Text Block] | 14. GAIN ON SETTLEMENT During the second quarter of 2015, the Company settled certain amounts due to a vendor for a gain of $ 378,136 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 15. INCOME TAXES The income tax expense of $ 21,795,143 1305 (38) 20,677,458 492 (38) 20,756,645 The effective tax rates of 1305% and 492% for the three and nine months ended September 30, 2015, respectively, differed from the U.S. statutory rate of 35 The overall effective income tax rate for the year could be different from the effective tax rate for the three and nine months ended September 30, 2015. A summary of our deferred tax assets and liabilities as well as the Company’s federal and state net operating loss carryforwards are included in Note 14 “Income Taxes” in our Annual Report on Form 10-K for the year ended December 31, 2014. The Company and its subsidiaries file income tax returns in the United States. These tax returns are subject to examination by taxation authorities provided the years remain open under the relevant statutes of limitations, which may result in the payment of income taxes and/or decreases in its net operating losses available for carryforward. The Company has losses from inception to date, and thus all years remain open for examination. While the Company believes that its tax filings do not include uncertain tax positions, the results of potential examinations or the effect of changes in tax law cannot be ascertained at this time. The Company does not have any tax returns currently under examination by the Internal Revenue Service. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Severance agreements The Company has severance agreements with two executive officers that provide for various payments if the officer’s employment agreement is terminated by the Company, other than for cause. At September 30, 2015, the total potential liability for severance agreements was $ 112,500 Clarkdale Slag Project royalty agreement - NMC - Under the original JV Agreement, the Company agreed to pay NMC a 5 50 50 2.5 Purchase consideration Clarkdale Slag Project - In consideration of the acquisition of the Clarkdale Slag Project from VRIC, the Company has agreed to certain additional contingent payments. The acquisition agreement contains payment terms which are based on the Project Funding Date as defined in the agreement: a) The Company has agreed to pay VRIC $ 6,400,000 b) The Company has agreed to pay VRIC a minimum annual royalty of $ 500,000 2.5 500,000 500,000 c) The Company has agreed to pay VRIC an additional amount of $ 3,500,000 The Advance Royalty shall continue for a period of ten years from the Agreement Date or until such time that the Project Royalty shall exceed $ 500,000 On July 25, 2011, the Company and NMC entered into an amendment (the “Third Amendment”) to the assignment agreement between the parties dated June 1, 2005. Pursuant to the Third Amendment, the Company agreed to pay advance royalties (the “Advance Royalties”) to NMC of $ 15,000 1,320,000 660,000 Total advance royalty fees were $ 45,000 45,000 135,000 135,000 Development agreement - In January 2009, the Company submitted a development agreement to the Town of Clarkdale for development of an Industrial Collector Road (the “Road”). The purpose of the Road is to provide the Company the capability to transport supplies, equipment and products to and from the Clarkdale Slag Project site efficiently and to meet stipulations of the Conditional Use Permit for the full production facility at the Clarkdale Slag Project. The timing of the development of the Road is to be within two years of the effective date of the agreement. The effective date shall be the later of (i) 30 days from the approving resolution of the agreement by the Council, (ii) the date on which the Town of Clarkdale obtains a connection dedication from separate property owners who have land that will be utilized in construction of the Road, or (iii) the date on which the Town of Clarkdale receives the proper effluent permit. The contingencies outlined in (ii) and (iii) above are beyond control of the Company. The Company estimates the initial cost of construction of the Road to be approximately $ 3,500,000 1,200,000 Registration Rights Agreement - In connection with the June 7, 2012 private placement, the Company entered into a Registration Rights Agreement (“RRA”) with the purchasers. Pursuant to the RRA, the Company agreed to certain demand registration rights. These rights include the requirement that the Company file certain registration statements within a specified time period and to have these registration statements declared effective within a specified time period. The Company also agreed to file and keep continuously effective such additional registration statements until all of the shares of common stock registered thereunder have been sold or may be sold without volume restrictions. If the Company is not able to comply with these registration requirements, the Company will be required to pay cash penalties equal to 1.0 3.0 121,500 Registration Rights Agreement - In connection with the September 18, 2013 convertible notes issuance, the Company entered into a RRA with the investors. Pursuant to the RRA, the Company agreed to file a registration statement covering the resale of the shares of common stock issuable upon conversion of the notes and the additional notes allowed for under the agreement. Pursuant to the RRA, the Company agreed to certain demand registration rights. These rights include the requirement that the Company file certain registration statements within a specified time period and to have these registration statements declared effective within a specified time period. The Company also agreed to file and keep continuously effective such additional registration statements until all of the shares of common stock registered thereunder have been sold or may be sold without volume restrictions. The Purchasers will also be granted piggyback registration rights with respect to such shares. If the Company is not able to comply with these registration requirements, the Company will be required to pay cash penalties equal to 1.0 3.0 120,000 18,000 |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 9 Months Ended |
Sep. 30, 2015 | |
CONCENTRATION OF CREDIT RISK [Abstract] | |
CONCENTRATION OF CREDIT RISK | 17. CONCENTRATION OF CREDIT RISK The Company maintains its cash accounts in financial institutions. Cash accounts at these financial institutions are insured by the Federal Deposit Insurance Corporation (the “FDIC”) for up to $ 250,000 921,654 |
CONCENTRATION OF ACTIVITY
CONCENTRATION OF ACTIVITY | 9 Months Ended |
Sep. 30, 2015 | |
Concentration Of Activity [Abstract] | |
CONCENTRATION OF ACTIVITY | 18. CONCENTRATION OF ACTIVITY The Company currently utilizes a mining and environmental firm to perform significant portions of its mineral property and metallurgical exploration work programs. A change in the lead mining and environmental firm could cause a delay in the progress of the Company’s exploration programs and would cause the Company to incur significant transition expense and may affect operating results adversely. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS NMC 15,000 The Company has an existing obligation to pay NMC a royalty consisting of 2.5 Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Reimbursement of expenses $ - $ 983 $ 360 $ 6,143 Consulting services provided 15,000 30,000 45,000 90,400 Advance royalty payments 45,000 45,000 135,000 135,000 Mineral and exploration expense related party $ 60,000 $ 75,983 $ 180,360 $ 231,543 The Company had outstanding balances due to NMC of $ 193,725 13,365 50,000 Cupit, Milligan, Ogden & Williams, CPAs - The Company utilizes CMOW to provide accounting support services. CMOW is an affiliate of the Company’s CFO, Mr. Williams. Fees for services provided by CMOW do not include any charges for Mr. Williams’ time. Mr. Williams is compensated for his time under his employment agreement. Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Accounting support services $ 41,606 $ 33,331 $ 137,211 $ 105,133 Direct benefit to CFO $ 12,066 $ 12,999 $ 39,791 $ 41,002 The Company had an outstanding balance due to CMOW of $ 145,386 8,174 Financial Consulting Services 2,063,143 0.50 Ireland Inc. Total rent expense incurred to Ireland was $ 5,068 7,305 15,070 24,219 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENT Warrant extension Risk-free interest rate 0.47% Expected volatility 88.50% Expected life 1 year Fair value $ - |
DESCRIPTION OF BUSINESS, HIST26
DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Description of business | Description of business - Searchlight Minerals Corp. (the “Company”) has been in the exploration stage since its formation, and the Company has not yet realized any revenues from its planned operations. The Company is primarily focused on the exploration, acquisition and development of mining and mineral properties. Upon the location of commercially minable reserves, the Company plans to prepare for mineral extraction and enter the development stage. |
History | History - The Company was incorporated on January 12, 1999 pursuant to the laws of the State of Nevada under the name L.C.M. Equity, Inc. From 1999 to 2005, the Company operated primarily as a biotechnology research and development company with its headquarters in Canada and an office in the United Kingdom (the “UK”). On November 2, 2001, the Company entered into an acquisition agreement with Regma Bio Technologies, Ltd. pursuant to which Regma Bio Technologies, Ltd. entered into a reverse merger with the Company with the surviving entity named “Regma Bio Technologies Limited”. On November 26, 2003, the Company changed its name from “Regma Bio Technologies Limited” to “Phage Genomics, Inc.” (“Phage”). In February 2005, the Company announced its reorganization from a biotechnology research and development company to a company focused on the development and acquisition of mineral properties and its Board of Directors approved a change in its name from Phage to "Searchlight Minerals Corp.” effective June 23, 2005. |
Going concern | Going concern - The accompanying consolidated financial statements were prepared on a going concern basis in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The going concern basis of presentation assumes that the Company will continue in operation for the next twelve months and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business and does not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the Company’s inability to continue as a going concern. The Company’s history of losses, working capital deficit, capital deficit, minimal liquidity and other factors raise substantial doubt about the Company’s ability to continue as a going concern. In order for the Company to continue operations beyond the next twelve months and be able to discharge its liabilities and commitments in the normal course of business it must raise additional equity or debt capital and continue cost cutting measures. There can be no assurance that the Company will be able to achieve sustainable profitable operations or obtain additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to management. If the Company continues to incur operating losses and does not raise sufficient additional capital, material adverse events may occur including, but not limited to, 1) a reduction in the nature and scope of the Company’s operations and 2) the Company’s inability to fully implement its current business plan. There can be no assurance that the Company will successfully improve its liquidity position. The accompanying consolidated financial statements do not reflect any adjustments that might be required resulting from the adverse outcome relating to this uncertainty. As of September 30, 2015, the Company had cumulative net losses of $ 80,282,950 24,877,141 3,055,659 4,287,313 To address liquidity constraints, the Company will seek additional sources of capital through the issuance of equity or debt financing. Additionally, the Company has reduced expenses and elected to defer payment of certain obligations. Cash conservation measures include, but are not limited to, the deferred payment where available of outsourced consulting fees, current and future board fees, officer salaries, monthly professional fees, and the Verde River Iron Company, LLC (“VRIC”) monthly payable. These activities have reduced the required cash outlay of the Company’s business significantly. The Company is focused on continuing to reduce costs and obtaining additional funding. There is no assurance that such funding will be available on terms acceptable to the Company, or at all. If the Company raises additional funds by selling additional shares of capital stock, securities convertible into shares of capital stock or the issuance of convertible debt, the ownership interest of the Company’s existing common stock holders will be diluted. |
Basis of presentation | Basis of presentation - The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company’s fiscal year-end is December 31. These condensed consolidated financial statements have been prepared without audit in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments and disclosures necessary for the fair presentation of these interim statements have been included. All such adjustments are, in the opinion of management, of a normal recurring nature with the exception of recording a full valuation allowance on certain deferred tax assets as discussed in Note 15. The results reported in these interim condensed consolidated financial statements are not necessarily indicative of the results that may be reported for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on April 13, 2015. |
Principles of consolidation | Principles of consolidation - The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Clarkdale Minerals, LLC (“CML”) and Clarkdale Metals Corp. (“CMC”). Significant intercompany accounts and transactions have been eliminated. |
Use of estimates | Use of estimates - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant. Significant areas requiring management’s estimates and assumptions include the valuation of stock-based compensation and derivative liabilities, impairment analysis of long-lived assets, and realizability of deferred tax assets. Actual results could differ from those estimates. |
Capitalized interest cost | Capitalized interest cost - The Company capitalizes interest cost related to acquisition, development and construction of property and equipment which is designed as integral parts of the manufacturing process. The capitalized interest is recorded as part of the asset it relates to and will be amortized over the asset’s useful life once production commences. |
Mineral properties | Mineral properties - Costs of acquiring mineral properties are capitalized upon acquisition. Exploration costs and costs to maintain mineral properties are expensed as incurred while the project is in the exploration stage. Once mineral reserves are established, development costs and costs to maintain mineral properties are capitalized as incurred while the property is in the development stage. When a property reaches the production stage, the related capitalized costs are amortized using the units-of-production method over the proven and probable reserves. |
Mineral exploration and development costs | Mineral exploration and development costs - Exploration expenditures incurred prior to entering the development stage are expensed and included in mineral exploration and evaluation expense. |
Property and equipment | Property and equipment 3 15 |
Impairment of long-lived assets | Impairment of long-lived assets - The tests for long-lived assets in the exploration, development or production stage that would have a value beyond proven and probable reserves would be monitored for impairment based on factors such as current market value of the mineral property and results of exploration, future asset utilization, business climate, mineral prices and future undiscounted cash flows expected to result from the use of the related assets. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated future net cash flows expected to be generated by the asset, including evaluating its reserves beyond proven and probable amounts. The Company's policy is to record an impairment loss in the period when it is determined that the carrying amount of the asset may not be recoverable either by impairment or by abandonment of the property. The impairment loss is calculated as the amount by which the carrying amount of the assets exceeds its fair value. |
Deferred financing fees | Deferred financing fees Deferred financing fees represent fees paid in connection with obtaining debt financing. These fees are amortized using the effective interest method over the term of the financing. |
Convertible notes - derivative liabilities | Convertible notes derivative liabilities The Company evaluates the embedded features of convertible notes to determine if they are required to be bifurcated and recorded as a derivative liability. If more than one feature is required to be bifurcated, the features are accounted for as a single compound derivative. The fair value of the compound derivative is recorded as a derivative liability and a debt discount. The carrying value of the convertible notes is recorded on the date of issuance at its original value less the fair value of the compound derivative. The derivative liability is measured at fair value on a recurring basis with changes reported in other income (expense). Fair value is determined using a model which incorporates estimated probabilities and inputs calculated by both the Binomial Lattice model and present values. The debt discount is amortized to non-cash interest expense using the effective interest method over the life of the notes. If a conversion of the underlying note occurs, a proportionate share of the unamortized amount is immediately expensed. |
Reclamation and remediation costs | Reclamation and remediation costs - For its exploration stage properties, the Company accrues the estimated costs associated with environmental remediation obligations in the period in which the liability is incurred or becomes determinable. Until such time that a project life is established, the Company records the corresponding cost as an exploration stage expense. The costs of future expenditures for environmental remediation are not discounted to their present value unless subject to a contractually obligated fixed payment schedule. Future reclamation and environmental-related expenditures are difficult to estimate in many circumstances due to the early stage nature of the exploration project, the uncertainties associated with defining the nature and extent of environmental disturbance, the application of laws and regulations by regulatory authorities and changes in reclamation or remediation technology. The Company periodically reviews accrued liabilities for such reclamation and remediation costs as evidence indicating that the liabilities have potentially changed becomes available. Changes in estimates are reflected in the consolidated statement of operations in the period an estimate is revised. The Company is in the exploration stage and is unable to determine the estimated timing of expenditures relating to reclamation accruals. It is reasonably possible that the ultimate cost of reclamation and remediation could change in the future and that changes to these estimates could have a material effect on future operating results as new information becomes known. |
Fair value of financial instruments | Fair value of financial instruments - The Company’s financial instruments consist principally of derivative liabilities and the VRIC payable. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels defined as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The Company’s financial instruments consist of the VRIC payable (described in Note 9), derivative liabilities and convertible notes (described in Note 7). The VRIC payable and the convertible notes are classified within Level 2 of the fair value hierarchy. The fair value of the VRIC payable approximates carrying value as the imputed interest rate is considered to approximate a market interest rate. The fair value of the convertible notes approximates carrying value as the interest rate is considered to approximate a market interest rate. The Company calculates the fair value of its derivative liabilities using various models which are all Level 3 inputs. The fair value of the derivative warrant liability (described in Note 6) is calculated using the Binomial Lattice model, and the fair value of the derivative liability - convertible notes (described in Note 8) is calculated using a model which incorporates estimated probabilities and inputs calculated by both the Binomial Lattice model and present values. The change in fair value of the derivative liabilities is classified in other income (expense) in the consolidated statement of operations. The Company generally does not use derivative financial instruments to hedge exposures to cash flow, market or foreign currency risks. There have been no changes in the valuation techniques used for the derivative liabilities. The Company does not have any non-financial assets or liabilities that it measures at fair value. During the nine months ended September 30, 2015 and 2014, there were no transfers of assets or liabilities between levels. |
Per share amounts | Per share amounts 73,162,932 37,054,430 |
Stock-based compensation | Stock-based compensation - Stock-based compensation awards are recognized in the consolidated financial statements based on the grant date fair value of the award which is estimated using the Binomial Lattice option pricing model. The Company believes that this model provides the best estimate of fair value due to its ability to incorporate inputs that change over time, such as volatility and interest rates, and to allow for the actual exercise behavior of option holders. The compensation cost is recognized over the requisite service period which is generally equal to the vesting period. Upon exercise, shares issued will be newly issued shares from authorized common stock. The fair value of performance-based stock option grants is determined on their grant date through the use of the Binomial Lattice option pricing model. The total value of the award is recognized over the requisite service period only if management has determined that achievement of the performance condition is probable. The requisite service period is based on management’s estimate of when the performance condition will be met. Changes in the requisite service period or the estimated probability of achievement can materially affect the amount of stock-based compensation recognized in the financial statements. The Company accounts for stock options issued to non-employees based on the estimated fair value of the awards using the Binomial Lattice option pricing model. The measurement of stock-based compensation to non-employees is subject to periodic adjustments as the underlying equity instruments vest, and the resulting change in value, if any, is recognized in the Company’s consolidated statements of operations during the period the related services are rendered. |
Income taxes | Income taxes - For interim reporting periods, the Company uses the annualized effective tax rate (“AETR”) method to calculate its income tax provision. Under this method, the AETR is applied to the interim year-to-date pre-tax losses to determine the income tax benefit or expense for the year-to-date period. The income tax benefit or expense for a quarter represents the difference between the year-to-date income tax benefit or expense for the current year-to-date period less such amount for the immediately preceding year-to-date period. Management considers the impact of all known events in its estimation of the Company’s annual operating results and AETR. The Company follows the liability method of accounting for income taxes. This method recognizes certain temporary differences between the financial reporting basis of liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset as measured by the statutory tax rates in effect. The effect of a change in tax rates is recognized in operations in the period that includes the enactment date. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. For acquired properties that do not constitute a business, a deferred income tax liability is recorded on GAAP basis over income tax basis using statutory federal and state rates. The resulting estimated future income tax liability associated with the temporary difference between the acquisition consideration and the tax basis is computed in accordance with Accounting Standards Codification (“ASC”) 740-10-25-51, Acquired Temporary Differences in Certain Purchase Transactions that are Not Accounted for as Business Combinations |
Recent accounting standards | Recent accounting standards - From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards did not or will not have a material impact on the Company’s consolidated financial statements upon adoption. In April 2015, the FASB issued Accounting Standard Update (“ASU”) 2015-03, Interest Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015, and early adoption is permitted. The Company is currently assessing the impact, if any, of implementing this guidance on its consolidated financial position, results of operations and liquidity. In November 2014, the FASB issued ASU 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. The ASU clarifies how current guidance should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of a host contract. The ASU is effective for fiscal years and interim periods beginning after December 15, 2015. The Company is currently assessing the impact, if any, of implementing this guidance on its consolidated financial position, results of operations and liquidity. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern. The new standard requires management of public and private companies to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The new standard is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Adoption of the new guidance is not expected to have an impact on the consolidated financial position, results of operations or cash flows. In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, which is effective for financial statements issued for interim and annual periods beginning on or after December 15, 2015. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and should not be reflected in the estimate of the grant-date fair value of the award. Adoption of the new guidance is not expected to have an impact on the consolidated financial position, results of operations or cash flows. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: September 30, 2015 December 31, 2014 Accumulated Net Book Accumulated Net Book Cost Depreciation Value Cost Depreciation Value Furniture and fixtures $ 38,255 $ (37,868) $ 387 $ 38,255 $ (37,476) $ 779 Lab equipment 249,061 (249,061) - 249,061 (247,356) 1,705 Computers and equipment 71,407 (59,926) 11,481 68,558 (54,025) 14,533 Vehicles 47,675 (45,983) 1,692 47,675 (45,458) 2,217 Slag conveyance equipment 300,916 (300,916) - 300,916 (300,916) - Demo module building 6,630,063 (4,361,115) 2,268,948 6,630,063 (3,863,860) 2,766,203 Grinding circuit 913,679 (19,167) 894,512 913,679 (11,667) 902,012 Extraction circuit 938,352 (415,750) 522,602 938,352 (274,997) 663,355 Leaching and filtration 1,300,618 (1,235,587) 65,031 1,300,618 (1,040,494) 260,124 Fero-silicate storage 4,326 (2,055) 2,271 4,326 (1,731) 2,595 Electrowinning building 1,492,853 (709,105) 783,748 1,492,853 (597,141) 895,712 Site improvements 1,677,844 (684,647) 993,197 1,675,906 (591,259) 1,084,647 Site equipment 360,454 (352,114) 8,340 360,454 (338,588) 21,866 Construction in progress 1,102,014 - 1,102,014 1,102,014 - 1,102,014 $ 15,127,517 $ (8,473,294) $ 6,654,223 $ 15,122,730 $ (7,404,968) $ 7,717,762 |
CLARKDALE SLAG PROJECT (Tables)
CLARKDALE SLAG PROJECT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Clarkdale Slag Project | The following table reflects the recorded purchase consideration for the Clarkdale Slag Project: Purchase price: Cash payments $ 10,100,000 Joint venture option acquired in 2005 for cash 690,000 Warrants issued for joint venture option 1,918,481 Common stock issued 66,879,375 Monthly payments, current portion 167,827 Monthly payments, net of current portion 2,333,360 Acquisition costs 127,000 Total purchase price 82,216,043 Net deferred income tax liability assumed - Clarkdale Slag Project 48,076,734 Total $ 130,292,777 The following table reflects the components of the Clarkdale Slag Project: Allocation of acquisition cost: Clarkdale Slag Project (including net deferred income tax liability assumed of $48,076,734) $ 120,766,877 Land - smelter site and slag pile 5,916,150 Land 3,300,000 Income property and improvements 309,750 Total $ 130,292,777 The Company agreed to continue to pay VRIC $ 30,000 1,098,488 1,062,778 The following table sets forth the change in the Slag Project for the nine month period ended September 30, 2015 and the year ended December 31, 2014: September 30, December 31, 2015 2014 Slag Pile, beginning balance $ 121,829,655 $ 121,759,811 Capitalized interest costs 35,710 69,844 Slag Pile, ending balance $ 121,865,365 $ 121,829,655 |
ACCOUNTS PAYABLE AND ACCRUED 29
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities at September 30, 2015 and December 31, 2014 consisted of the following: September 30, December 31, Trade accounts payable $ 583,058 $ 728,021 Accrued compensation and related taxes 347,247 88,293 Accrued interest 46,128 81,637 $ 976,433 $ 897,951 |
DERIVATIVE WARRANT LIABILITY (T
DERIVATIVE WARRANT LIABILITY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative [Line Items] | |
Schedule Of Fair Value Assumptions Warrants | With respect to the extensions, the Company did not recognize any additional expense as the fair values of the warrants were calculated at zero using the Binomial Lattice model with the following assumptions: November 11, October 25, November 1, 2014 2013 2012 Risk-free interest rate 0.14% 0.11% 0.19% Expected volatility 142.72% 114.79% 94.94% Expected life (years) 1.0 1.0 1.0 |
Schedule of Assumptions used to Establish Valuation of Warrants | The Company estimates the fair value of the derivative liabilities by using the Binomial Lattice pricing-model, with the following assumptions used for the nine month period ended September 30, 2015 and the year ended December 31, 2014: September 30, December 31, 2015 2014 Dividend yield - - Expected volatility 30.46% - 65.70% 29.38% - 153.76% Risk-free interest rate 0.00% - 0.14% 0.02% - 0.26% Expected life (years) 0.10 - 0.60 0.10 1.0 |
Warrant [Member] | |
Derivative [Line Items] | |
Schedule of Changes in Fair Value of Derivative Liabilities | The following table sets forth the changes in the fair value of derivative liability for the nine month period ended September 30, 2015 and the year ended December 31, 2014: September 30, December 31, 2015 2014 Beginning balance $ - $ (81,574) Adjustment to warrants - - Change in fair value - 81,574 Ending balance $ - $ - |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Convertible Debt [Abstract] | |
Convertible Debt | The carrying value of the convertible debt, net of discount was comprised of the following: September 30, December 31, 2015 2014 Convertible notes at face value $ 4,069,000 $ 4,000,000 Issuance of additional notes - 69,000 Unamortized discount (805,147) (981,620) Convertible notes, net of discount $ 3,263,853 $ 3,087,380 |
Schedule Of Notes Payable | The effective interest rate on the Notes is 15.4 September 30, September 30, 2015 2014 Interest rate at 7% $ 213,612 $ 209,798 Amortization of debt discount 176,473 163,244 Amortization of deferred financing fees 18,327 16,953 Total interest expense on convertible notes $ 408,412 $ 389,995 |
DERIVATIVE LIABILITY - CONVER32
DERIVATIVE LIABILITY - CONVERTIBLE NOTES (Tables) - Convertible Notes Payable [Member] | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule Of Fair Value Assumptions | Assumptions used for the nine months ended September 30, 2015 and 2014 included redemption and conversion estimates/behaviors, estimates regarding future anti-dilutive financing agreements and the following other significant estimates: September 30, September 30, 2015 2014 Expected volatility 101.46 - 105.61% 96.46 107.84% Risk-free interest rate 0.92 - 1.13% 1.25 1.73% Expected life (years) 2.0 2.5 - 3.0 |
Schedule Of Derivative Liabilities At Fair Value | The following table sets forth the changes in the fair value of the derivative liability for the nine month period ended September 30, 2015 and the year ended December 31, 2014: September 30, December 31, 2015 2014 Beginning balance $ 1,218,619 $ 755,709 Issuance of convertible debt - 9,519 Change in fair value (753,260) 453,391 Ending balance $ 465,359 $ 1,218,619 |
VRIC PAYABLE - RELATED PARTY (T
VRIC PAYABLE - RELATED PARTY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Future Principal Payments on VRIC Payable | The following table represents future minimum payments on the VRIC payable for each of the twelve month periods ending September 30: 2016 $ 630,000 2017 131,195 Thereafter - Total minimum payments 761,195 Less: amount representing interest (63,051) Present value of minimum payments 698,144 VRIC payable, current portion 569,288 VRIC payable, net of current portion $ 128,856 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
STOCKHOLDERS' EQUITY [Abstract] | |
Schedule Of Outstanding Warrants Issued To Investors To Purchase Common Stock | The following summarizes the exercise price per share and expiration date of our outstanding warrants issued to investors and vendors to purchase common stock at September 30, 2015: Shares Underlying Outstanding Warrants Exercise Price Expiration Date 3,410,526 $ 1.27 November 2015 5,736,501 1.29 November 2015 7,042,387 1.85 November 2015 1,000,000 0.375 June 2016 3,000,000 0.375 June 2017 316,752 0.30 September 2019 2,197,496 0.30 October 2019 1,000,000 0.30 November 2019 1,498,750 0.30 December 2019 3,981,000 0.50 December 2019 4,250,000 0.50 March 2020 2,843,000 0.50 May 2020 2,215,429 0.50 July 2020 327,900 0.50 September 2020 38,819,741 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Assumptions Used to Estimate Fair Value of Stock Based Compensation Awards | For both service-based and performance-based stock option grants, the Company estimates the fair value of stock-based compensation awards by using the Binomial Lattice option pricing model with the following assumptions used for the nine month periods ended: September 30, September 30, 2015 2014 Risk-free interest rate 0.24% - 1.75% 0.39% - 1.73% Dividend yield - - Expected volatility 91.23% - 110.32% 98.65% - 105.87% Expected life (years) 0.30 - 4.75 2.00 - 4.25 |
Summary of Stock-based Compensation Activity | The following table summarizes the Company’s stock-based compensation activity for the nine month period ended September 30, 2015: Weighted Weighted Average Average Remaining Grant Weighted Contractual Aggregate Number of Date Fair Average Life Intrinsic Shares Value Exercise Price (Years) Value Outstanding, December 31, 2014 17,387,745 $ 0.24 $ 0.55 4.53 Options/warrants granted 6,557,714 0.07 0.49 5.09 Options/warrants expired (35,605) 0.31 0.84 - Options/warrants exercised - - - - Outstanding, September 30, 2015 23,909,854 $ 0.20 $ 0.53 4.12 $ - Exercisable, September 30, 2015 19,805,854 $ 0.21 $ 0.53 3.93 $ - |
Schedule of Changes to Stock Based Compensation Awards Subject to Vesting | The following table summarizes the changes of the Company’s stock-based compensation awards subject to vesting for the nine month period ended September 30, 2015: Weighted Number of Average Shares Subject Grant Date to Vesting Fair Value Unvested, December 31, 2014 350,000 $ 0.93 Options/warrants granted 3,804,000 0.09 Options/warrants vested (50,000) 0.55 Unvested, September 30, 2015 4,104,000 $ 0.16 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions | The following table provides details of transactions between the Company and NMC for the three and nine months ended: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Reimbursement of expenses $ - $ 983 $ 360 $ 6,143 Consulting services provided 15,000 30,000 45,000 90,400 Advance royalty payments 45,000 45,000 135,000 135,000 Mineral and exploration expense related party $ 60,000 $ 75,983 $ 180,360 $ 231,543 |
Cupit Milligan Ogden Williams Certified Public Accountants [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions | The following table provides details of transactions between the Company and CMOW and the direct benefit to Mr. Williams for the three and nine month periods ended: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Accounting support services $ 41,606 $ 33,331 $ 137,211 $ 105,133 Direct benefit to CFO $ 12,066 $ 12,999 $ 39,791 $ 41,002 |
SUBSEQUENT EVENT (Tables)
SUBSEQUENT EVENT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Fair value of the Warrants | The Company calculated the fair value of the warrants using the Binomial Lattice model with the following assumptions, outputs and results: Risk-free interest rate 0.47% Expected volatility 88.50% Expected life 1 year Fair value $ - |
DESCRIPTION OF BUSINESS, HIST38
DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES (Additional Information) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Retained Earnings (Accumulated Deficit) | $ (80,282,950) | $ (80,282,950) | $ (55,405,809) | ||
Net loss | (23,465,831) | $ (12,103,040) | (24,877,141) | $ (14,177,740) | |
Cash flows from operating activities | (3,055,659) | $ (2,420,486) | |||
Working Capital Deficit | $ 4,287,313 | $ 4,287,313 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 73,162,932 | 37,054,430 | |||
Minimum [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 3 years | ||||
Maximum [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 15 years |
RESTRICTED CASH (Additional Inf
RESTRICTED CASH (Additional Information) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 227,345 | $ 0 |
PROPERTY AND EQUIPMENT (Additio
PROPERTY AND EQUIPMENT (Additional Information) (Details) - USD ($) | Mar. 09, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 352,988 | $ 378,181 | $ 1,068,325 | $ 1,136,174 | |
Operating Leases, Rent Expense | $ 5,068 | $ 7,305 | 15,070 | 24,219 | |
Proceeds from Sale of Property, Plant, and Equipment | $ 457,548 | $ 457,548 | $ 245,943 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 15,127,517 | $ 15,122,730 |
Accumulated Depreciation | (8,473,294) | (7,404,968) |
Net Book Value | 6,654,223 | 7,717,762 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 38,255 | 38,255 |
Accumulated Depreciation | (37,868) | (37,476) |
Net Book Value | 387 | 779 |
Lab Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 249,061 | 249,061 |
Accumulated Depreciation | (249,061) | (247,356) |
Net Book Value | 0 | 1,705 |
Computers and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 71,407 | 68,558 |
Accumulated Depreciation | (59,926) | (54,025) |
Net Book Value | 11,481 | 14,533 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 47,675 | 47,675 |
Accumulated Depreciation | (45,983) | (45,458) |
Net Book Value | 1,692 | 2,217 |
Slag conveyance equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 300,916 | 300,916 |
Accumulated Depreciation | (300,916) | (300,916) |
Net Book Value | 0 | 0 |
Demo Module Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 6,630,063 | 6,630,063 |
Accumulated Depreciation | (4,361,115) | (3,863,860) |
Net Book Value | 2,268,948 | 2,766,203 |
Grinding Circuit [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 913,679 | 913,679 |
Accumulated Depreciation | (19,167) | (11,667) |
Net Book Value | 894,512 | 902,012 |
Extraction Circuit [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 938,352 | 938,352 |
Accumulated Depreciation | (415,750) | (274,997) |
Net Book Value | 522,602 | 663,355 |
Leaching And Filtration [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,300,618 | 1,300,618 |
Accumulated Depreciation | (1,235,587) | (1,040,494) |
Net Book Value | 65,031 | 260,124 |
Fero-silicate storage [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 4,326 | 4,326 |
Accumulated Depreciation | (2,055) | (1,731) |
Net Book Value | 2,271 | 2,595 |
Electrowinning Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,492,853 | 1,492,853 |
Accumulated Depreciation | (709,105) | (597,141) |
Net Book Value | 783,748 | 895,712 |
Site improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,677,844 | 1,675,906 |
Accumulated Depreciation | (684,647) | (591,259) |
Net Book Value | 993,197 | 1,084,647 |
Site equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 360,454 | 360,454 |
Accumulated Depreciation | (352,114) | (338,588) |
Net Book Value | 8,340 | 21,866 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,102,014 | 1,102,014 |
Accumulated Depreciation | 0 | 0 |
Net Book Value | $ 1,102,014 | $ 1,102,014 |
CLARKDALE SLAG PROJECT (Additio
CLARKDALE SLAG PROJECT (Additional Information) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||||
Feb. 15, 2007 | Sep. 30, 2015 | Dec. 31, 2014 | Jul. 25, 2011 | Dec. 31, 2010 | May. 20, 2005 | |
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Accumulated Capitalized Interest Costs | $ 1,098,488 | $ 1,062,778 | ||||
Purchase of assets, purchase price | 130,292,777 | |||||
Land Smelter Site And Slag Pile [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Allocation of acquisition cost | 5,916,150 | |||||
Land [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Allocation of acquisition cost | 3,300,000 | |||||
Building and Building Improvements [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Allocation of acquisition cost | 309,750 | |||||
Nanominerals Corporation [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Advance royalty payment amount | $ 15,000 | $ 660,000 | ||||
Clarkdale Slag Project [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Purchase of assets, ownership interest acquired | 100.00% | |||||
Allocation of acquisition cost | $ 120,766,877 | |||||
Purchase of assets, purchase price | $ 130,292,777 | |||||
Clarkdale Slag Project [Member] | Land Smelter Site And Slag Pile [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Allocation of acquisition cost | 5,916,150 | |||||
Clarkdale Slag Project [Member] | Land [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Allocation of acquisition cost | 3,300,000 | |||||
Clarkdale Slag Project [Member] | Building and Building Improvements [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Allocation of acquisition cost | $ 309,750 | |||||
Clarkdale Slag Project [Member] | Nanominerals Corporation [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Joint venture ownership interest | 50.00% | 50.00% | ||||
Additional contingent payment | $ 1,320,000 | |||||
Royalty payment percentage | 2.50% | |||||
Clarkdale Slag Project [Member] | Nanominerals Corporation [Member] | Scenario, Previously Reported [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Joint venture ownership interest | 50.00% | 50.00% | ||||
Royalty payment percentage | 5.00% | |||||
Clarkdale Slag Project [Member] | Verde River Iron Company Limited Liability Company [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Common stock issued | 16,825,000 | |||||
Shares Issued, Price Per Share | $ 3.975 | |||||
Monthly payments, current portion | $ 30,000 | $ 30,000 | ||||
Monthly payment Period | 90 days | |||||
Additional contingent payment | $ 6,400,000 | |||||
Advance royalty payment amount | $ 500,000 | |||||
Royalty payment percentage | 2.50% | |||||
Clarkdale Slag Project [Member] | Verde River Iron Company Limited Liability Company [Member] | Minimum [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Advance royalty payment amount | $ 500,000 | |||||
Clarkdale Slag Project [Member] | Verde River Iron Company Limited Liability Company [Member] | Royalty Payments [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Monthly payments, current portion | 30,000 | |||||
Additional contingent payment | 500,000 | |||||
Clarkdale Slag Project [Member] | Verde River Iron Company Limited Liability Company [Member] | Cash Flow [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Additional contingent payment | 3,500,000 | |||||
Clarkdale Slag Project [Member] | Verde River Iron Company Limited Liability Company [Member] | On Execution Of Letter Agreement [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Monthly payments, current portion | 200,000 | |||||
Clarkdale Slag Project [Member] | Verde River Iron Company Limited Liability Company [Member] | On Closing Date [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Monthly payments, current portion | $ 9,900,000 | |||||
Clarkdale Slag Project [Member] | Verde River Iron Company Limited Liability Company [Member] | Scenario, Previously Reported [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Joint venture ownership interest | 50.00% | |||||
Royalty payment percentage | 5.00% | |||||
Clarkdale Slag Project [Member] | Verde River Iron Company Limited Liability Company [Member] | Nanominerals Corporation [Member] | ||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||
Royalty payment percentage | 2.50% | 2.50% |
CLARKDALE SLAG PROJECT (Purchas
CLARKDALE SLAG PROJECT (Purchase Consideration for Clarkdale Slag Project) (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Purchase price: | |
Total | $ 130,292,777 |
Clarkdale Slag Project [Member] | |
Purchase price: | |
Cash payments | 10,100,000 |
Joint venture option acquired in 2005 for cash | 690,000 |
Warrants issued for joint venture option | 1,918,481 |
Common stock issued | 66,879,375 |
Acquisition costs | 127,000 |
Total purchase price | 82,216,043 |
Net deferred income tax liability assumed - Clarkdale Slag Project | 48,076,734 |
Total | 130,292,777 |
Clarkdale Slag Project [Member] | Current Liabilities [Member] | |
Purchase price: | |
Monthly payments, current portion | 167,827 |
Clarkdale Slag Project [Member] | Noncurrent Liabilities [Member] | |
Purchase price: | |
Monthly payments, net of current portion | $ 2,333,360 |
CLARKDALE SLAG PROJECT (Compone
CLARKDALE SLAG PROJECT (Components of Clarkdale Slag Project) (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Purchase price: | |
Total | $ 130,292,777 |
Land - smelter site and slag pile [Member] | |
Purchase price: | |
Allocation of acquisition cost | 5,916,150 |
Land [Member] | |
Purchase price: | |
Allocation of acquisition cost | 3,300,000 |
Building and Building Improvements [Member] | |
Purchase price: | |
Allocation of acquisition cost | 309,750 |
Clarkdale Slag Project [Member] | |
Purchase price: | |
Allocation of acquisition cost | $ 120,766,877 |
CLARKDALE SLAG PROJECT (Changes
CLARKDALE SLAG PROJECT (Changes in the Slag Project) (Details) - Slag Project [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Noncash or Part Noncash Acquisitions [Line Items] | ||
Slag Pile, beginning balance | $ 121,829,655 | $ 121,759,811 |
Capitalized interest costs | 35,710 | 69,844 |
Slag Pile, ending balance | $ 121,865,365 | $ 121,829,655 |
ACCOUNTS PAYABLE AND ACCRUED 46
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts Payable And Accrued Liabilities [Line Items] | ||
Trade accounts payable | $ 583,058 | $ 728,021 |
Accrued compensation and related taxes | 347,247 | 88,293 |
Accrued interest | 46,128 | 81,637 |
Accounts payable and accrued liabilities | $ 976,433 | $ 897,951 |
DERIVATIVE WARRANT LIABILITY (A
DERIVATIVE WARRANT LIABILITY (Additional Information) (Details) | Nov. 12, 2009$ / sharesshares | Nov. 30, 2009 | Sep. 30, 2015$ / sharesshares | Sep. 18, 2015$ / shares | Jul. 30, 2015$ / shares | May. 21, 2015$ / shares | Dec. 31, 2014 | Jun. 07, 2012$ / sharesshares |
Derivative [Line Items] | ||||||||
Exercise price of warrant | $ 0.50 | |||||||
Private Placement [Member] | ||||||||
Derivative [Line Items] | ||||||||
Exercise price of warrant | $ 1.85 | $ 0.50 | $ 0.50 | |||||
Warrants expiration date | Nov. 12, 2012 | Nov. 1, 2012 | ||||||
Warrants issued | shares | 993,332 | |||||||
Warrant [Member] | ||||||||
Derivative [Line Items] | ||||||||
Warrants expiration date | Nov. 12, 2015 | |||||||
Derivative Liability, Number of Instruments Held | 9,147,029 | 8,153,697 | ||||||
Warrant [Member] | Maximum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Exercise price of warrant | $ 1.85 | |||||||
Warrant [Member] | Minimum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Exercise price of warrant | $ 1.27 | |||||||
Luxor Capital Partners LP [Member] | Private Placement [Member] | ||||||||
Derivative [Line Items] | ||||||||
Total number of warrants that anti dilution rights were waived on | shares | 4,252,883 | |||||||
Exercise price of warrant | $ 1.29 | |||||||
Stock Issuance Costs [Member] | Private Placement [Member] | ||||||||
Derivative [Line Items] | ||||||||
Shares of common stock that can be purchased by the warrants | shares | 6,341,263 | |||||||
Scenario Cumulative Adjustment [Member] | Private Placement [Member] | ||||||||
Derivative [Line Items] | ||||||||
Shares of common stock that can be purchased by the warrants | shares | 2,805,766 |
DERIVATIVE WARRANT LIABILITY (S
DERIVATIVE WARRANT LIABILITY (Schedule of Fair Value of Warrants) (Details) | Nov. 11, 2014 | Oct. 25, 2013 | Nov. 01, 2012 | Sep. 30, 2015 |
Derivative [Line Items] | ||||
Expected life (years) | 2 years | |||
Warrant [Member] | ||||
Derivative [Line Items] | ||||
Risk-free interest rate | 0.14% | 0.11% | 0.19% | |
Expected volatility | 142.72% | 114.79% | 94.94% | |
Expected life (years) | 1 year | 1 year | 1 year |
DERIVATIVE WARRANT LIABILITY (C
DERIVATIVE WARRANT LIABILITY (Changes in Fair Value of Derivative Liabilities) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Beginning balance | $ 0 | $ (81,574) |
Adjustment to warrants | 0 | 0 |
Change in fair value | 0 | 81,574 |
Ending balance | $ 0 | $ 0 |
DERIVATIVE WARRANT LIABILITY 50
DERIVATIVE WARRANT LIABILITY (Assumptions Used to Estimates Fair Value of Derivative Liabilities) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Derivative [Line Items] | ||
Expected volatility | 30.46% | 29.38% |
Risk-free interest rate | 0.00% | 0.02% |
Expected life (years) | 1 month 6 days | 1 month 6 days |
Maximum [Member] | ||
Derivative [Line Items] | ||
Expected volatility | 65.70% | 153.76% |
Risk-free interest rate | 0.14% | 0.26% |
Expected life (years) | 7 months 6 days | 1 year |
CONVERTIBLE NOTES (Additional I
CONVERTIBLE NOTES (Additional Information) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||||
Sep. 18, 2015 | Sep. 18, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 10, 2014 | Dec. 31, 2013 | |
Debt Conversion [Line Items] | |||||||
Proceeds from Convertible Debt | $ 0 | $ 69,000 | |||||
Percentage Of Principal Balance Payable Upon Change Of Control | 120.00% | ||||||
Debt Instrument, Convertible, Conversion Price | $ 0.39 | ||||||
Debt Conversion, Converted Instrument, Shares Issued | 327,900 | ||||||
Deferred Finance Costs, Noncurrent, Net | $ 79,073 | $ 97,401 | |||||
Notes Payable Additional Issuance | 0 | 69,000 | $ 69,000 | ||||
Derivative Liability | 0 | 0 | $ (81,574) | ||||
Restricted Cash and Cash Equivalents | $ 227,345 | $ 0 | |||||
Convertible Notes Payable [Member] | |||||||
Debt Conversion [Line Items] | |||||||
Proceeds from Convertible Debt | $ 4,000,000 | ||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.00% | ||||||
Debt Instrument, Debt Default, Percentage Of Interest | 9.00% | ||||||
Percentage Of Principal Balance Payable Upon Change Of Control | 120.00% | ||||||
Additional Secured Indebtedness Amount | $ 600,000 | ||||||
Debt Instrument, Convertible, Conversion Price | $ 0.40 | $ 0.39 | |||||
Debt Conversion, Converted Instrument, Shares Issued | 10,433,333 | ||||||
Debt Instrument, Interest Rate, Basis for Effective Rate | 15.4 | ||||||
Deferred Finance Costs, Noncurrent, Net | $ 126,446 | ||||||
Derivative Liability | $ 1,261,285 |
CONVERTIBLE NOTES (Schedule of
CONVERTIBLE NOTES (Schedule of Carrying value of the Convertible debt) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 10, 2014 |
Debt Conversion [Line Items] | |||
Convertible notes at face value | $ 4,069,000 | $ 4,000,000 | |
Issuance of additional notes | 0 | 69,000 | $ 69,000 |
Unamortized discount | (805,147) | (981,620) | |
Convertible notes, net of discount | $ 3,263,853 | $ 3,087,380 |
CONVERTIBLE NOTES (Schedule o53
CONVERTIBLE NOTES (Schedule of Components and amounts of effective interest rate) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Debt Conversion [Line Items] | ||
Amortization of deferred financing fees | $ 194,801 | $ 180,197 |
Notes Payable, Other Payables [Member] | ||
Debt Conversion [Line Items] | ||
Interest rate at 7% | 213,612 | 209,798 |
Amortization of debt discount | 176,473 | 163,244 |
Amortization of deferred financing fees | 18,327 | 16,953 |
Total interest expense on convertible notes | $ 408,412 | $ 389,995 |
DERIVATIVE LIABILITY - CONVER54
DERIVATIVE LIABILITY - CONVERTIBLE NOTES (Additional Information) (Details) | 9 Months Ended |
Sep. 30, 2015USD ($)$ / shares | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Debt Instrument, Convertible, Conversion Price | $ 0.39 |
Percentage Of Principal Balance Payable Upon Change Of Control | 120.00% |
Private Placement [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Proceeds from Issuance of Long-term Debt, Total | $ | $ 4,069,000 |
DERIVATIVE LIABILITY - CONVER55
DERIVATIVE LIABILITY - CONVERTIBLE NOTES (Schedule of Other significant estimates) (Details) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Expected life (years) | 2 years | |
Maximum [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Expected volatility | 105.61% | 107.84% |
Risk-free interest rate | 1.13% | 1.73% |
Expected life (years) | 3 years | |
Minimum [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Expected volatility | 101.46% | 96.46% |
Risk-free interest rate | 0.92% | 1.25% |
Expected life (years) | 2 years 6 months |
DERIVATIVE LIABILITY - CONVER56
DERIVATIVE LIABILITY - CONVERTIBLE NOTES (Schedule of fair value of the derivative liability) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative Liability And Convertible Debt [Line Items] | ||
Beginning balance | $ 1,218,619 | |
Ending balance | 0 | $ 1,218,619 |
Convertible Notes Payable [Member] | ||
Derivative Liability And Convertible Debt [Line Items] | ||
Beginning balance | 1,218,619 | 755,709 |
Issuance of convertible debt | 0 | 9,519 |
Change in fair value | (753,260) | 453,391 |
Ending balance | $ 465,359 | $ 1,218,619 |
VRIC PAYABLE - RELATED PARTY (A
VRIC PAYABLE - RELATED PARTY (Additional Information) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 15, 2007 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 18, 2014 | |
Recorded Unconditional Purchase Obligation [Line Items] | ||||||
Additional Paid in Capital | $ 255,000 | |||||
Clarkdale Slag Project [Member] | ||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||
Capitalized Interest Costs, Including Allowance for Funds Used During Construction, Total | $ 10,342 | $ 16,753 | $ 35,710 | $ 54,566 | ||
Clarkdale Slag Project [Member] | Verde River Iron Company Limited Liability Company [Member] | ||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||
Monthly payments | $ 30,000 | $ 30,000 | ||||
Effective interest rate used for present value of monthly payment | 8.00% | 8.00% | ||||
Purchase of assets, Present value of monthly payment commitment | $ 2,501,187 | $ 2,501,187 | ||||
Purchase of assets, imputed interest on the monthly payment commitment | $ 1,128,813 | $ 1,128,813 | ||||
Expected term used for present value of monthly payment | 10 years |
VRIC PAYABLE - RELATED PARTY (F
VRIC PAYABLE - RELATED PARTY (Future Principal Payments on VRIC Payable) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
2,016 | $ 630,000 | |
2,017 | 131,195 | |
Thereafter | 0 | |
Total minimum payments | 761,195 | |
Less: amount representing interest | (63,051) | |
Present value of minimum payments | 698,144 | |
VRIC payable, current portion | 569,288 | $ 315,552 |
VRIC payable, net of current portion | $ 128,856 | $ 382,592 |
STOCKHOLDERS' EQUITY (Additiona
STOCKHOLDERS' EQUITY (Additional Information) (Details) - USD ($) | Sep. 09, 2014 | Sep. 18, 2015 | Jul. 30, 2015 | May. 21, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 18, 2015 | Dec. 31, 2014 | Nov. 12, 2009 |
Stockholders Equity Note [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | ||||||||
Proceeds from Issuance of Private Placement | $ 995,050 | ||||||||
Payments of Stock Issuance Costs | $ 22,172 | $ 0 | |||||||
Interest Payable | $ 46,128 | $ 81,637 | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 327,900 | ||||||||
Debt Conversion, Original Debt, Amount | $ 114,765 | ||||||||
Class Of Warrant Or Right Expiration Period | 5 years | ||||||||
Gains (Losses) on Extinguishment of Debt | $ 10,666 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||||
Convertible Notes Payable [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Interest Payable | $ 129,115 | ||||||||
Debt Conversion, Converted Instrument, Shares Issued | 10,433,333 | ||||||||
Common Stock [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Shares Issued, Price Per Share | $ 0.25 | ||||||||
Shares, Issued | 516,460 | ||||||||
Private Placement [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | $ 0.50 | $ 1.85 | ||||||
Proceeds from Issuance of Private Placement | $ 775,400 | ||||||||
Common Stock Units Issued During Period | 2,215,429 | 2,843,000 | |||||||
Common Stock Unit Price Per Share | $ 0.35 | $ 0.35 | |||||||
Payments of Stock Issuance Costs | $ 9,468 | $ 12,704 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule Of Outstanding Warrants Issued To Investors To Purchase Common Stock) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 18, 2015 | |
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 38,819,741 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | |
Class Of Warrant Or Right One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 3,410,526 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.27 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | November 2,015 | |
Class Of Warrant Or Right Two [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 5,736,501 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.29 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | November 2,015 | |
Class Of Warrant Or Right Three [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 7,042,387 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.85 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | November 2,015 | |
Class Of Warrant Or Right Four [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 1,000,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.375 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | June 2,016 | |
Class Of Warrant Or Right Five [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 3,000,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.375 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | June 2,017 | |
Class Of Warrant Or Right Six [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 316,752 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.30 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | September 2,019 | |
Class Of Warrant Or Right Seven [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 2,197,496 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.30 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | October 2,019 | |
Class Of Warrant Or Right Eight [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 1,000,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.30 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | November 2,019 | |
Class Of Warrant Or Right Nine [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 1,498,750 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.30 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | December 2,019 | |
Class Of Warrant Or Right Ten [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 3,981,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | December 2,019 | |
Class Of Warrant Or Right Eleven [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 4,250,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | March 2,020 | |
Class Of Warrant Or Right Twelve [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 2,843,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | May 2,020 | |
Class Of Warrant Or Right Thirteen [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 2,215,429 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | July 2,020 | |
Class Of Warrant Or Right Fourteen [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 327,900 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | |
Class of Warrant or Right, Expiration Date of Warrants or Rights | September 2,020 |
STOCK-BASED COMPENSATION (Addit
STOCK-BASED COMPENSATION (Additional Information) (Details) - USD ($) | Jan. 13, 2014 | Aug. 28, 2015 | Jun. 30, 2015 | Mar. 23, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Common shares available for issuance for stock option awards | 5,425,576 | 5,425,576 | |||||||||||
Expenses related to vesting and granting of stock-based compensation awards | $ 177,725 | $ 11,300 | $ 228,732 | $ 62,947 | |||||||||
Stock option granted, weighted average exercise price | $ 0.49 | ||||||||||||
Stock option outstanding | 23,909,854 | 23,909,854 | 17,387,745 | ||||||||||
Unrecognized compensation cost related to unvested stock-based compensation awards | $ 262,468 | $ 262,468 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 27,708 | $ 27,708 | $ 27,708 | $ 102,439 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance | 4,104,000 | 4,104,000 | 350,000 | ||||||||||
Weighted Average Period For Recognized Costs | 2 months 23 days | ||||||||||||
Weighted Average Period For Recognized Expenses | 3 months | ||||||||||||
Non Employee Director [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option granted, shares | 3,804,000 | 659,890 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 18,000 | ||||||||||||
Value of common stock per quarter directors can choice to receive | $ 9,000 | ||||||||||||
Stock option granted, weighted average exercise price | $ 0.50 | $ 0.83 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 31,544 | ||||||||||||
Consultant Awards [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option granted, shares | 200,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 5,011 | ||||||||||||
Performance Shares [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance | 250,000 | 250,000 | |||||||||||
Warrant [Member] | Consultant Awards [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option granted, shares | 2,591,714 | ||||||||||||
Stock option granted, weighted average exercise price | $ 0.50 | ||||||||||||
Stock Option Plan 2007 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Common shares available for issuance for stock option awards | 1,047,953 | 1,047,953 | |||||||||||
Stock option plan, maximum options to purchase shares of common stock that may be granted | 4,000,000 | 4,000,000 | |||||||||||
Stock option granted, shares | 2,952,047 | ||||||||||||
Stock option granted, weighted average exercise price | $ 0.61 | ||||||||||||
Stock option outstanding | 2,763,618 | 2,763,618 | |||||||||||
Stock Option Plan 2007 [Member] | Minimum [Member] | Nonqualified Stock Options [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option plan, exercise price as a percentage of fair market value | 85.00% | ||||||||||||
Stock Option Plan 2009 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Common shares available for issuance for stock option awards | 3,812,500 | 3,812,500 | |||||||||||
Stock option plan, maximum options to purchase shares of common stock that may be granted | 7,250,000 | 7,250,000 | |||||||||||
Stock option granted, shares | 3,437,500 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 500,000 | ||||||||||||
Stock option granted, weighted average exercise price | $ 0.68 | ||||||||||||
Stock option outstanding | 3,397,500 | 3,397,500 | |||||||||||
Stock Option Plan 2009 [Member] | Non-Management Directors [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option granted, shares | 54,000 | 54,000 | 54,000 | 54,000 | 54,000 | ||||||||
Stock option, expiration date | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |||||||||
Stock option granted, weighted average exercise price | $ 0.25 | $ 0.22 | $ 0.24 | $ 0.33 | $ 0.26 | ||||||||
Stock Option Plan 2009 [Member] | Directors Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Common shares available for issuance for stock option awards | 565,123 | 565,123 | |||||||||||
Stock option plan, maximum options to purchase shares of common stock that may be granted | 2,750,000 | 2,750,000 | |||||||||||
Stock option granted, shares | 2,184,877 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 250,000 | ||||||||||||
Stock option granted, weighted average exercise price | $ 0.70 | ||||||||||||
Stock option outstanding | 2,138,022 | 2,138,022 | |||||||||||
Stock Option Plan 2009 [Member] | Directors Plan [Member] | Minimum [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option plan, exercise price as a percentage of fair market value | 100.00% | ||||||||||||
Stock Option Plan 2009 [Member] | For grantees who own more than 10% of the Company's common stock on the grant date [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option plan, exercise price as a percentage of fair market value | 110.00% | ||||||||||||
Out of Plans [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option granted, weighted average exercise price | $ 0.48 | ||||||||||||
Stock option outstanding | 15,610,714 | 15,610,714 |
STOCK-BASED COMPENSATION (Assum
STOCK-BASED COMPENSATION (Assumptions Used to Estimate Fair Value of Stock-Based Compensation Awards) (Details) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.24% | 0.39% |
Expected volatility | 91.23% | 98.65% |
Expected life (years) | 3 months 18 days | 2 years |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.75% | 1.73% |
Expected volatility | 110.32% | 105.87% |
Expected life (years) | 4 years 9 months | 4 years 3 months |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock-Based Compensation Activity) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Number of Shares | ||
Outstanding | 17,387,745 | |
Options/warrants granted | 6,557,714 | |
Options/warrants expired | (35,605) | |
Options/warrants exercised | 0 | |
Outstanding | 23,909,854 | 17,387,745 |
Exercisable | 19,805,854 | |
Weighted Average Grant Date Fair Value | ||
Outstanding | $ 0.24 | |
Options/warrants granted | 0.07 | |
Options/warrants expired | 0.31 | |
Options/warrants exercised | 0 | |
Outstanding | 0.20 | $ 0.24 |
Exercisable | 0.21 | |
Weighted Average Exercise Price | ||
Outstanding | 0.55 | |
Options/warrants granted | 0.49 | |
Options/warrants expired | 0.84 | |
Options/warrants exercised | 0 | |
Outstanding | 0.53 | $ 0.55 |
Exercisable | $ 0.53 | |
Weighted Average Remaining Contractual Life (Years) | ||
Outstanding | 4 years 1 month 13 days | 4 years 6 months 11 days |
Options/warrants granted | 5 years 1 month 2 days | |
Exercisable | 3 years 11 months 5 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 0 | |
Exercisable | $ 0 |
STOCK-BASED COMPENSATION (Chang
STOCK-BASED COMPENSATION (Changes of Stock-Based Compensation Awards Subject to Vesting) (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of Shares Subject to Vesting | |
Unvested | 350,000 |
Options/warrants granted | 3,804,000 |
Options/warrants vested | (50,000) |
Unvested | 4,104,000 |
Weighted Average Grant Date Fair Value | |
Unvested | $ / shares | $ 0.93 |
Options/warrants granted | $ / shares | 0.09 |
Options/warrants vested | $ / shares | 0.55 |
Unvested | $ / shares | $ 0.16 |
STOCKHOLDER RIGHTS AGREEMENT (A
STOCKHOLDER RIGHTS AGREEMENT (Additional Information) (Details) | Sep. 30, 2015 |
Stockholder Rights Agreement [Line Items] | |
Minimum Percentage Of Ownership Acquired Or To Be Acquired Upon Which Purchase Rights Become Exercisable | 15.00% |
Luxor Capital Partners LP [Member] | |
Stockholder Rights Agreement [Line Items] | |
Percentage Of Ownership Interests | 15.00% |
Luxor Capital Partners LP [Member] | Maximum [Member] | |
Stockholder Rights Agreement [Line Items] | |
Percentage Of Ownership Interests | 26.00% |
PROPERTY RENTAL AGREEMENTS AN66
PROPERTY RENTAL AGREEMENTS AND LEASES (Additional Information) (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Operating Leased Assets [Line Items] | |
Operating Leases, Income Statement, Minimum Lease Revenue | $ 1,700 |
GAIN ON SETTLEMENT (Additional
GAIN ON SETTLEMENT (Additional Information) (Details) - USD ($) | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
General And Administrative Expense Disclosure [Line Items] | |||
Other General and Administrative Expense | $ 378,136 | $ (378,136) | $ 0 |
INCOME TAXES (Additional Inform
INCOME TAXES (Additional Information) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent, Total | 1305.00% | (38.00%) | 492.00% | (38.00%) |
Income Tax Expense (Benefit) | $ 21,795,143 | $ (7,440,766) | $ 20,677,458 | $ (8,747,063) |
Deferred Tax Assets, Valuation Allowance | $ 20,756,645 | $ 20,756,645 | ||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Additional Information) (Details) - USD ($) | Jun. 07, 2012 | Sep. 18, 2013 | Feb. 15, 2007 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jul. 25, 2011 | Dec. 31, 2010 | May. 20, 2005 |
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Cash penalties as a percentage of purchase price paid by investors | 1.00% | 1.00% | ||||||||
Potential Liability for Severance Agreements | $ 112,500 | $ 112,500 | ||||||||
Long-term Construction Loan | 3,500,000 | 3,500,000 | ||||||||
Long-term Construction Loan, Current | 1,200,000 | 1,200,000 | ||||||||
Payments for Royalties | $ 45,000 | $ 45,000 | $ 135,000 | $ 135,000 | ||||||
Additional Notes Payables [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Payment, Period | $ 18,000 | |||||||||
Maximum [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Cash penalties as a percentage of purchase price paid by investors | 3.00% | 3.00% | ||||||||
Payment, Period | $ 121,500 | |||||||||
Maximum [Member] | Convertible Notes Payable [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Payment, Period | $ 120,000 | |||||||||
Nanominerals Corporation [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Advance royalty payment amount | $ 15,000 | $ 660,000 | ||||||||
Clarkdale Slag Project [Member] | Nanominerals Corporation [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Additional contingent payment | $ 1,320,000 | |||||||||
Royalty payment percentage | 2.50% | |||||||||
Joint venture ownership interest | 50.00% | 50.00% | ||||||||
Clarkdale Slag Project [Member] | Nanominerals Corporation [Member] | Scenario, Previously Reported [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Royalty payment percentage | 5.00% | |||||||||
Joint venture ownership interest | 50.00% | 50.00% | 50.00% | |||||||
Verde River Iron Company Limited Liability Company [Member] | Clarkdale Slag Project [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Additional contingent payment | $ 6,400,000 | |||||||||
Advance royalty payment amount | 500,000 | |||||||||
The Minimum project royalty payments that should be made for the advance royalty not to remains payable | $ 500,000 | |||||||||
Royalty payment percentage | 2.50% | |||||||||
Verde River Iron Company Limited Liability Company [Member] | Clarkdale Slag Project [Member] | Scenario, Previously Reported [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Royalty payment percentage | 5.00% | |||||||||
Joint venture ownership interest | 50.00% | |||||||||
Verde River Iron Company Limited Liability Company [Member] | Clarkdale Slag Project [Member] | Minimum [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Advance royalty payment amount | $ 500,000 | |||||||||
Verde River Iron Company Limited Liability Company [Member] | Clarkdale Slag Project [Member] | Royalty Payments [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Additional contingent payment | 500,000 | |||||||||
Verde River Iron Company Limited Liability Company [Member] | Clarkdale Slag Project [Member] | Cash Flow [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Additional contingent payment | $ 3,500,000 | |||||||||
Verde River Iron Company Limited Liability Company [Member] | Clarkdale Slag Project [Member] | Nanominerals Corporation [Member] | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Royalty payment percentage | 2.50% | 2.50% |
CONCENTRATION OF CREDIT RISK (A
CONCENTRATION OF CREDIT RISK (Additional Information) (Details) | Sep. 30, 2015USD ($) |
Concentration Risk [Line Items] | |
Deposits In Excess Of Insured Limits | $ 921,654 |
Maximum [Member] | |
Concentration Risk [Line Items] | |
Insurance Available For Cash At Each Bank | $ 250,000 |
RELATED PARTY TRANSACTIONS (Add
RELATED PARTY TRANSACTIONS (Additional Information) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 18, 2015 | Dec. 31, 2014 | Dec. 18, 2014 | |
Related Party Transaction [Line Items] | |||||||
Operating Leases, Rent Expense, Sublease Rentals | $ 5,068 | $ 7,305 | $ 15,070 | $ 24,219 | |||
Additional Paid in Capital | $ 255,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | ||||||
Financial Consulting Services [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Class Of Warrant Or Right Grants In Period | 2,063,143 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | $ 0.50 | |||||
Warrants and Rights Outstanding | $ 70,112 | $ 70,112 | |||||
Warrants Expiration Period | 5 years | ||||||
Nanominerals Corporation [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Fee and expenses incurred to related party | 15,000 | ||||||
Additional Paid in Capital | 50,000 | 50,000 | |||||
Due to Related Parties, Current | $ 193,725 | $ 193,725 | $ 13,365 | ||||
Nanominerals Corporation [Member] | Clarkdale Slag Project [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Royalty payment percentage | 2.50% | ||||||
Cupit Milligan Ogden Williams Certified Public Accountants [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Fee and expenses incurred to related party | 41,606 | $ 33,331 | $ 137,211 | $ 105,133 | |||
Outstanding balance due to related party | $ 145,386 | $ 145,386 | $ 8,174 |
RELATED PARTY TRANSACTIONS (Com
RELATED PARTY TRANSACTIONS (Company and NMC) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transactions [Member] | ||||
Related Party Transaction [Line Items] | ||||
Mineral and exploration expense - related party | $ 60,000 | $ 75,983 | $ 180,360 | $ 231,543 |
Nanominerals Corporation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Advance royalty payments | 45,000 | 45,000 | 135,000 | 135,000 |
Nanominerals Corporation [Member] | Reimbursements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Fee and expenses incurred to related party | 0 | 983 | 360 | 6,143 |
Nanominerals Corporation [Member] | Consulting Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Fee and expenses incurred to related party | $ 15,000 | $ 30,000 | $ 45,000 | $ 90,400 |
RELATED PARTY TRANSACTIONS (C73
RELATED PARTY TRANSACTIONS (Company and CMOW) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cupit Milligan Ogden Williams Certified Public Accountants [Member] | ||||
Related Party Transaction [Line Items] | ||||
Fee and expenses incurred to related party | $ 41,606 | $ 33,331 | $ 137,211 | $ 105,133 |
Chief Financial Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Fee and expenses incurred to related party | $ 12,066 | $ 12,999 | $ 39,791 | $ 41,002 |
SUBSEQUENT EVENTS (Additional I
SUBSEQUENT EVENTS (Additional Information) (Details) | Nov. 12, 2015shares |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Shares of common stock that can be purchased by the warrants | 16,189,414 |
SUBSEQUENT EVENT (fair value of
SUBSEQUENT EVENT (fair value of the warrants) (Details) - USD ($) | Nov. 12, 2015 | Sep. 30, 2015 |
Subsequent Event [Line Items] | ||
Fair Value Assumptions, Expected Term | 2 years | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Fair Value Assumptions, Risk Free Interest Rate | 0.47% | |
Fair Value Assumptions, Expected Volatility Rate | 88.50% | |
Fair Value Assumptions, Expected Term | 1 year | |
Fair Value Adjustment of Warrants | $ 0 |