Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Feb. 12, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | Timberline Resources Corp. | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 1,288,750 | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 24,106,952 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Incorporation, State Country Name | Delaware | |
Trading Symbol | tlrs |
TIMBERLINE RESOURCES CORPORATIO
TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Interim period unaudited) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | |
CURRENT ASSETS: | |||
Cash | $ 91,114 | $ 82,275 | |
Prepaid expenses and other current assets | 28,033 | 15,237 | |
Accounts receivable | 2,633 | ||
Available-for-sale equity securities | 360,000 | 420,000 | |
TOTAL CURRENT ASSETS | 481,780 | 517,512 | |
PROPERTY, MINERAL RIGHTS AND EQUIPMENT, net | 15,515,719 | 15,482,719 | |
OTHER ASSETS: | |||
Restricted cash | 319,032 | 694,157 | |
Deposits and other assets | 9,750 | 9,750 | |
TOTAL OTHER ASSETS | 328,782 | 703,907 | |
TOTAL ASSETS | 16,326,281 | 16,704,138 | |
CURRENT LIABILITIES: | |||
Accounts payable | 49,203 | 53,665 | |
Accrued expenses | 265,000 | 299,000 | |
Accrued payroll, benefits and taxes | 46,308 | 21,750 | |
TOTAL CURRENT LIABILITIES | 360,511 | 374,415 | |
LONG-TERM LIABILITIES: | |||
Asset retirement obligation | 147,411 | 145,656 | |
TOTAL LONG-TERM LIABILITIES | 147,411 | 145,656 | |
COMMITMENTS AND CONTINGENCIES | [1] | 0 | 0 |
STOCKHOLDERS' EQUITY: | |||
Common stock, $0.001 par value; 200,000,000 shares authorized, 24,106,952 shares issued and outstanding | 24,107 | 24,107 | |
Additional paid-in capital | 67,924,709 | 67,924,709 | |
Accumulated deficit | (52,219,572) | (51,892,864) | |
Accumulated other comprehensive income: | |||
Unrealized gain on available-for-sale equity securities, net of tax | 89,115 | 128,115 | |
TOTAL STOCKHOLDERS' EQUITY | 15,818,359 | 16,184,067 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 16,326,281 | $ 16,704,138 | |
[1] | Notes 5 and 11 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - $ / shares | Dec. 31, 2016 | Sep. 30, 2016 |
Statement of financial position | ||
Preferred Stock, Par Value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 24,106,952 | 24,106,952 |
Common Stock, Shares Outstanding | 24,106,952 | 24,106,952 |
TIMBERLINE RESOURCES CORPORATI4
TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING EXPENSES: | ||
Mineral exploration | $ 45,728 | $ 138,687 |
Salaries and benefits | 76,534 | 504,035 |
Professional fees | 91,815 | 106,044 |
Insurance | 20,127 | 22,771 |
Gain on disposal of equipment | (2,500) | |
Other general and administrative | 73,086 | 36,523 |
TOTAL OPERATING EXPENSES | 304,790 | 808,060 |
LOSS FROM OPERATIONS | (304,790) | (808,060) |
OTHER INCOME (EXPENSE): | ||
Foreign exchange gain (loss) | (921) | 92 |
Miscellaneous other income | 3 | 24,049 |
TOTAL OTHER INCOME (EXPENSE) | (918) | 24,141 |
LOSS BEFORE INCOME TAXES | (305,708) | (783,919) |
INCOME TAX PROVISION (BENEFIT) | 21,000 | |
NET LOSS | (326,708) | (783,919) |
COMPREHENSIVE INCOME (LOSS): | ||
Unrealized loss on available-for-sale equity securities, net of tax of $21,000 | (39,000) | |
COMPREHENSIVE LOSS | $ (365,708) | $ (783,919) |
NET LOSS PER SHARE AVAILABLE TO COMMON STOCKHOLDERS, BASIC AND DILUTED | $ (0.01) | $ (0.06) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED | 24,106,952 | 13,331,946 |
TIMBERLINE RESOURCES CORPORATI5
TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (326,708) | $ (783,919) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization | 1,979 | |
Income tax provision | 21,000 | |
Gain on disposal of equipment | (2,500) | |
Stock-based compensation | 351,966 | |
Accretion of asset retirement obligation | 1,755 | 1,671 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (12,796) | 8,531 |
Accounts receivable | (2,633) | |
Accounts payable | (4,462) | 11,847 |
Accrued expenses | (34,000) | (38,048) |
Accrued payroll, benefits and taxes | 24,558 | 9,955 |
Net cash used by operating activities | (335,786) | (436,018) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property, mineral rights and equipment | (33,000) | (30,000) |
Proceeds from disposal of equipment | 2,500 | |
Refund of reclamation bond | 375,125 | 8,005 |
Net cash provided (used) by investing activities | 344,625 | (21,995) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net cash provided by financing activities | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 8,839 | (458,013) |
CASH AT BEGINNING OF PERIOD | 82,275 | 500,965 |
CASH AT END OF PERIOD | $ 91,114 | $ 42,952 |
Note 1 - Organization and Descr
Note 1 - Organization and Description of Business | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 1 - Organization and Description of Business: | NOTE 1 ORGANIZATION AND DESCRIPTION OF BUSINESS: Timberline Resources Corporation (Timberline or the Company, we, us, our) was incorporated in August of 1968 under the laws of the State of Idaho as Silver Crystal Mines, Inc., for the purpose of exploring for precious metal deposits and advancing them to production. In 2008, we reincorporated into the State of Delaware pursuant to a merger agreement approved by our shareholders. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 2 - Summary of Significant Accounting Policies: | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Basis of Presentation and Going Concern The consolidated financial statements for the three-month period ended December 31, 2016 were prepared on the basis that the Company is a going concern, which contemplates the realization of its assets and the settlement of its liabilities in the normal course of operations. These financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. The Companys ability to continue as a going concern is dependent upon its ability to receive cash flow from its operations or to successfully obtain additional financing. While the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms acceptable to the Company. These factors raise substantial doubt about the Companys ability to continue as a going concern. b. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities, in periods of future income as of December 31, 2016 and 2015, would be as follows: 2016 2015 Stock options 2,055,419 577,615 Stock unit awards - 675,000 Warrants 10,000,006 12,500 Total possible dilution 12,055,425 1,265,115 At December 31, 2016 and 2015, the effect of the Companys outstanding options and common stock equivalents would have been anti-dilutive. c. Asset retirement obligation d. Available-for-sale equity securities |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 3 - Fair Value Measurements: | NOTE 3 FAIR VALUE MEASUREMENTS: The table below sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category. December 31, 2016 September 30, 2016 Input Hierarchy Level Assets: Cash $ 91,114 $ 82,275 Level 1 Restricted cash 319,032 694,157 Level 1 Available-for-sale equity securities 360,000 420,000 Level 1 |
Note 4 - Restricted Cash
Note 4 - Restricted Cash | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 4 - Restricted Cash: | NOTE 4 RESTRICTED CASH: Cash that is restricted as to withdrawal or use under the terms of certain contractual arrangements, generally with regulatory agencies, is recorded in Other Assets Restricted cash During the three months ended December 31, 2016, we received $375,125 as the result of partial reduction of the required reclamation bond amount for our Eureka project due to non-use of land. Pursuant to our request, the Bureau of Land Management (BLM) inspected the Eureka project and authorized the return of the unobligated portion of our reclamation bond due to less acres being disturbed than the acreage for which the bond had been required. Because the bond return was for undisturbed land, there is no impact on our asset retirement obligation liability. |
Note 5 - Property Option Agreem
Note 5 - Property Option Agreement | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 5 - Property Option Agreement: | NOTE 5 PROPERTY OPTION AGREEMENT: On March 12, 2015 (the Effective Date), we entered into a property option agreement (Agreement) with Gunpoint Exploration Ltd. (Gunpoint), which closed on March 31, 2015 and was amended on October 19, 2016 (Amended Agreement). Pursuant to the Agreement, Gunpoint granted us an exclusive and irrevocable option (Option) to purchase a 100% interest in Gunpoints Talapoosa project (the Project) in western Nevada. We acquired the right to exercise the Option at any time beginning on March 31, 2015 and ending within thirty (30) months of March 12, 2015, unless sooner terminated (Option Period). Pursuant to the Amended Agreement, we have the right to exercise the Option through March 31, 2019 (Amended Option Period), subject to certain interim payments and cumulative project expenditures. As consideration for the Option, we agreed to issue two million (2,000,000) shares of common stock and pay $300,000 in cash. A $100,000 cash payment was made on March 31, 2015, and the balance of $200,000 was paid on September 23, 2015. The common stock was valued at fair value on the Effective Date and combined with the cash payments of $300,000 for a total of $1,500,000. The common stock was issued on March 31, 2015 into escrow with periodic releases to Gunpoint. The shares are irrevocable and are to be released to Gunpoint as follows: 25% on September 12, 2015 (released); 25% on March 12, 2016 (released); 25% on September 12, 2016 (released); and 25% on March 12, 2017. Gunpoint will receive the total of 2,000,000 shares even if the Company does not exercise the Option. Pursuant to the Amended Agreement, during the Amended Option Period, we are required to make the following expenditures and stock issuances in order to retain the Option: · · · · Upon the date that Gunpoint receives the required payments and stock issuances (the Closing Date), we will have earned a 100% interest in the Project. For a period of five years following the Closing Date (Contingent Payment Period), should the daily price of gold (as determined by the London PM Fix) average greater than or equal to $1,600 per ounce over any 90-day period (Trigger Event), we will pay Gunpoint an additional payment of $10 million (the Contingent Payment), of which a minimum of $5 million will be payable within six months of the Trigger Event and the remaining $5 million payable within twelve months of the Trigger Event. The Contingent Payment is payable with 50% in cash and 50% in common shares of the Company, at our sole discretion, Following our exercise of the Option, effective as of the Closing Date, Gunpoint reserves a one-percent (1%) net smelter returns royalty in all minerals mined and removed from the Project (the Royalty). The Companys option granted in the Agreement to purchase the Royalty from Gunpoint at any time for a cash payment of $3 million was eliminated in the Amended Agreement. |
Note 6 - Available-for-sale Equ
Note 6 - Available-for-sale Equity Securities | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 6 - Available-for-sale Equity Securities: | NOTE 6 AVAILABLE-FOR-SALE EQUITY SECURITIES: Available-for-sale equity securities are comprised of 3,000,000 restricted shares of common stock in New Jersey Mining Company (NJMC) (the NJMC Shares) that we received in January 2016 as partial consideration of our sale of our 50% interest in Butte Highlands JV, LLC. The following table summarizes the Companys available-for-sale equity securities: December 31, September 30, 2016 2016 Cost $ 222,900 $ 222,900 Unrealized Gain 137,100 197,100 Fair Value $ 360,000 $ 420,000 Management has determined the best measure of NJMC fair value to be the closing price of NJMC common stock on the OTCQB market as of December 31, 2016 and September 30, 2016, which was $0.12 and $0.14 per share, respectively. |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 7 - Accrued Expenses: | NOTE 7 ACCRUED EXPENSES: The Company has accrued $265,000 in expenses, including $250,000 in costs recognized as financing transaction expense during the year ended September 30, 2015 as a result of a potential corporate transaction that was not completed. The components of these accrued expenses are: Description Amount Break fee for terminated transaction $ 250,000 Other expenses 15,000 Total accrued expenses $ 265,000 |
Note 8 - Common Stock, Warrants
Note 8 - Common Stock, Warrants and Preferred Stock | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 8 - Common Stock, Warrants and Preferred Stock: | NOTE 8 COMMON STOCK, WARRANTS AND PREFERRED STOCK: Private Placements We did not close any private placements or issue any common stock or warrants during the three months ended December 31, 2016 and 2015. Stock Issued for Stock Options and Stock Unit Awards We did not issue any stock pursuant to the exercise of stock options or stock unit awards during the three months ended December 31, 2016 and 2015. During the three months ended December 31, 2015, $337,500 was recognized as salaries and benefits expense related to the granting of 675,000 stock unit awards. Warrants No warrants were issued during the three months ended December 31, 2016 and 2015. 12,500 warrants expired during the three months ended December 31, 2015. At December 31, 2016, there were 10,000,006 warrants outstanding with an exercise price of $0.25 per share that expire on May 31, 2019. Preferred Stock We are authorized to issue up to 10,000,000 shares of preferred stock, $0.01 par value. Our board of directors is authorized to issue the preferred stock from time to time in series, and is further authorized to establish such series, to fix and determine the variations in the relative rights and preferences as between series, to fix voting rights, if any, for each series, and to allow for the conversion of preferred stock into common stock. |
Note 9 - Stock-based Awards
Note 9 - Stock-based Awards | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 9 - Stock-based Awards: | NOTE 9 STOCK-BASED AWARDS: During the three months ended December 31, 2016, no stock-based awards expired or were granted. Total compensation cost of options and stock unit awards for employees was nil and $351,966 for the three months ended December 31, 2016 and 2015 respectively. These costs were classified under salaries and benefits expense. The fair value of the 675,000 stock unit awards granted during the three months ended December 31, 2015 was $337,500 and was determined by the closing price of the Companys common stock on the NYSE MKT on the grant date. The fair value of the 43,837 options granted during the three months ended December 31, 2015 was $14,466 and was estimated on the date of grant with a Black-Scholes option-pricing model using the assumptions noted in the following table: Expected volatility 110.4% Stock price on date of grant $0.50 Expected dividends - Expected term (in years) 3 Risk-free rate 0.90% Expected forfeiture rate 0% The following is a summary of our options issued under the Amended 2005 Equity Incentive Plan and the 2015 Stock and Incentive Plan: Options Weighted Average Exercise Price Outstanding at September 30, 2016 2,055,419 $ 0.56 Granted - Exercised - Expired - Outstanding and exercisable at December 31, 2016 2,055,419 $ 0.56 Weighted average fair value of options granted during the three months ended December 31, 2016 $ 0 Average remaining contractual term of options outstanding and exercisable at December 31, 2016 (years) 4.21 The aggregate of options exercisable as of December 31, 2016 had an intrinsic value of nil based on the closing price of $0.28 per share of our common stock on December 31, 2016. |
Note 10 - Related-party Transac
Note 10 - Related-party Transactions | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 10 - Related-party Transactions: | NOTE 10 RELATED-PARTY TRANSACTIONS : During the quarter ended December 31, 2016, a trailer with a carrying value of nil was sold to our Chief Financial Officer for cash resulting in a gain of $ 2,500 . |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 11 - Commitments and Contingencies: | NOTE 11 COMMITMENTS AND CONTINGENCIES : Mineral Exploration A portion of our Lookout Mountain mineral claims are subject to a mining lease and agreement dated August 22, 2003 with Rocky Canyon Mining Company, as amended on June 1, 2008. The lease term was extended to 20 years on June 1, 2008, and thereafter for as long as minerals are mined on the project. Under this agreement, we are obligated to make monthly advance royalty payments of $72,000 per annum. A portion of our Eureka mineral claims are subject to two mining leases with purchase option agreements dated July 12, 2012 with Silver International, Inc. The initial term of each of the agreements is ten years and may be extended for four additional periods of five years each. Under these agreements, we are obligated to make annual advance royalty payments of $10,000 per annum. A portion of our Eureka mineral claims are subject to a mining claim lease agreement dated November 1, 2012 with four individuals. The initial term of the agreement is five years and may be extended for an additional five years and annually as long as mining operations are being conducted on the property on a continuous basis. Under this agreement, we are obligated to make annual advance royalty payments of $15,000 per year in 2016 and thereafter. A portion of the Talapoosa mineral claims is subject to a mining lease and option to purchase agreement dated June 21, 2011 with Nevada Bighorns Unlimited Foundation. The initial term of the agreement is 20 years and may be extended for an additional 20 years and thereafter as long as minimum payments are being paid and exploration, development or mining activities are taking place. Under this agreement, we are obligated to make annual minimum payments of $10.00 per acre ($12,800) through June 21, 2020, increasing by $5.00 per acre in 2021 and every five years thereafter, subject to a maximum annual payment of $30.00 per acre. A portion of the Talapoosa mineral claims are subject to a mining lease with option to purchase agreement dated June 2, 1997 with Sario Livestock Company. The initial term of the agreement is 20 years and may be extended for an additional period of 20 years. Under this agreement, we are obligated to make a minimum royalty payment of $9,600 per year. If the lease agreement is extended beyond the initial 20-year term, the minimum royalty payments increase to $48,000 per year. Another portion of the Talapoosa mineral claims is subject to a separate mining lease with option to purchase agreement with Sario Livestock Company dated September 11, 1989 and amended on July 13, 2010. The term of the agreement, as amended, is until September 10, 2029, with no right to extend the agreement beyond that date. Under this agreement, we are obligated to make a minimum royalty payment of $30,000 per year. A portion of the Talapoosa mineral claims is subject to a mining lease dated July 14, 1990, as amended on August 25, 1998 and July 13, 2010, with Sierra Denali Minerals Inc. The term of the agreement, as amended in July 2010, is 10 years and may be extended for two additional periods of five years each. Under this amended agreement, we are obligated to make minimum payments of $35,000 per year. Pursuant to the Amended Agreement at Talapoosa (see Note 5), we have an obligation to make a payment of $1 million by March 31, 2017 as well as future payments and property expenditure obligations of $17.5 million. We pay federal and county claim maintenance fees on unpatented claims that are included in our mineral exploration properties. Should we continue to explore all of our mineral properties we expect annual fees to total approximately $285,000 per year in the future. While we recognize that we will not be able to meet these obligations with our current cash balances, we do expect to make these required payments with proceeds from expected capital raises. We expect to obtain additional capital through refunds of excess restricted cash held for exploration bonds and financing transactions such as equity investments, asset sales, joint ventures, debt facilities, or other types of strategic arrangements. Real Estate Lease Commitments The Company has real estate lease commitments related to its facilities in Sparks, Nevada. As of December 31, 2016, lease obligations until the termination of the lease are $21,000. The Companys office in Coeur dAlene, Idaho and its facility in Eureka, Nevada are rented on a month-to-month basis. Total office lease and rental expense from continuing operations is included in the following line items in the consolidated statements of operations and comprehensive income (loss): Three months ended December 31, 2016 2015 Mineral exploration expenses $ 12,900 $ 16,050 Other general and administrative expenses 10,500 10,500 Total $ 23,400 $ 26,550 Employment Agreements There have been no recent interactions between the Company and its prior President and Chief Executive Officer regarding his dismissal and employment agreement. No amounts have been accrued in the Companys financial statements as of December 31, 2016 for severance benefits or claims as the Company is unable to estimate an amount, if any. The Company has an employment agreement with an executive employee that requires certain termination benefits and payments in defined circumstances. |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 12 - Subsequent Events: | NOTE 12 SUBSEQUENT EVENTS : On January 13, 2017, we initiated Each Unit consists of one share of common stock of the Company and one common share purchase warrant (each a Warrant), with each Warrant exercisable to acquire an additional share of common stock of the Company at a price of US$0.40 per share until the warrant expiration date of January 31, 2020. The Company may accelerate the warrant expiration date if the price of the Companys common stock closes at or above US$0.90 for twenty consecutive trading days. The terms of the Offering also include that the Company will use commercially reasonable efforts to prepare and file a registration statement under the Securities Act for resale of the shares of common stock and the shares of common stock underlying the Warrants to the extent allowed by the Securities and Exchange Commission. The Company intends to use the net proceeds of the Offering for working capital, costs associated with property and claim maintenance, and exploration expenses. |
Note 2 - Summary of Significa18
Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation and Going Concern (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
a. Basis of Presentation and Going Concern | a. Basis of Presentation and Going Concern The consolidated financial statements for the three-month period ended December 31, 2016 were prepared on the basis that the Company is a going concern, which contemplates the realization of its assets and the settlement of its liabilities in the normal course of operations. These financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. The Companys ability to continue as a going concern is dependent upon its ability to receive cash flow from its operations or to successfully obtain additional financing. While the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms acceptable to the Company. These factors raise substantial doubt about the Companys ability to continue as a going concern. |
Note 2 - Summary of Significa19
Note 2 - Summary of Significant Accounting Policies: b. Net Income (Loss) per Share (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
b. Net Income (Loss) per Share | b. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities, in periods of future income as of December 31, 2016 and 2015, would be as follows: 2016 2015 Stock options 2,055,419 577,615 Stock unit awards - 675,000 Warrants 10,000,006 12,500 Total possible dilution 12,055,425 1,265,115 At December 31, 2016 and 2015, the effect of the Companys outstanding options and common stock equivalents would have been anti-dilutive. |
Note 2 - Summary of Significa20
Note 2 - Summary of Significant Accounting Policies: c. Asset Retirement Obligations (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
c. Asset Retirement Obligations | c. Asset retirement obligation |
Note 2 - Summary of Significa21
Note 2 - Summary of Significant Accounting Policies: d. Available-for-sale equity securities (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
d. Available-for-sale equity securities | d. Available-for-sale equity securities |
Note 2 - Summary of Significa22
Note 2 - Summary of Significant Accounting Policies: b. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | 2016 2015 Stock options 2,055,419 577,615 Stock unit awards - 675,000 Warrants 10,000,006 12,500 Total possible dilution 12,055,425 1,265,115 |
Note 3 - Fair Value Measureme23
Note 3 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | December 31, 2016 September 30, 2016 Input Hierarchy Level Assets: Cash $ 91,114 $ 82,275 Level 1 Restricted cash 319,032 694,157 Level 1 Available-for-sale equity securities 360,000 420,000 Level 1 |
Note 6 - Available-for-sale E24
Note 6 - Available-for-sale Equity Securities: Schedule of Available-for-sale Securities Reconciliation (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Available-for-sale Securities Reconciliation | December 31, September 30, 2016 2016 Cost $ 222,900 $ 222,900 Unrealized Gain 137,100 197,100 Fair Value $ 360,000 $ 420,000 |
Note 7 - Accrued Expenses_ Sche
Note 7 - Accrued Expenses: Schedule of Accrued Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Accrued Liabilities | Description Amount Break fee for terminated transaction $ 250,000 Other expenses 15,000 Total accrued expenses $ 265,000 |
Note 9 - Stock-based Awards_ Sc
Note 9 - Stock-based Awards: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Stock Options, Activity | Options Weighted Average Exercise Price Outstanding at September 30, 2016 2,055,419 $ 0.56 Granted - Exercised - Expired - Outstanding and exercisable at December 31, 2016 2,055,419 $ 0.56 Weighted average fair value of options granted during the three months ended December 31, 2016 $ 0 Average remaining contractual term of options outstanding and exercisable at December 31, 2016 (years) 4.21 |
Note 11 - Commitments and Con27
Note 11 - Commitments and Contingencies: Schedule of Rent Expense (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Rent Expense | Three months ended December 31, 2016 2015 Mineral exploration expenses $ 12,900 $ 16,050 Other general and administrative expenses 10,500 10,500 Total $ 23,400 $ 26,550 |
Note 1 - Organization and Des28
Note 1 - Organization and Description of Business (Details) | 3 Months Ended |
Dec. 31, 2016 | |
Details | |
Entity Incorporation, State Country Name | Delaware |
Note 2 - Summary of Significa29
Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation and Going Concern (Details) | 3 Months Ended |
Dec. 31, 2016 | |
Details | |
Substantial Doubt about Going Concern | The consolidated financial statements for the three-month period ended December 31, 2016 were prepared on the basis that the Company is a going concern, which contemplates the realization of its assets and the settlement of its liabilities in the normal course of operations. These financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate.  The Company’s ability to continue as a going concern is dependent upon its ability to receive cash flow from its operations or to successfully obtain additional financing. While the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms acceptable to the Company.  These factors raise substantial doubt about the Company’s ability to continue as a going concern. |
Note 2 - Summary of Significa30
Note 2 - Summary of Significant Accounting Policies: b. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Stock options | 2,055,419 | 577,615 |
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | 675,000 | |
Warrants | 10,000,006 | 12,500 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 12,055,425 | 1,265,115 |
Note 3 - Fair Value Measureme31
Note 3 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Details | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 91,114 | $ 82,275 |
Restricted Cash and Cash Equivalents, Current | 319,032 | 694,157 |
Available-for-sale Securities, Equity Securities | $ 360,000 | $ 420,000 |
Note 4 - Restricted Cash (Detai
Note 4 - Restricted Cash (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Refund of reclamation bond | $ 375,125 | $ 8,005 |
Note 5 - Property Option Agre33
Note 5 - Property Option Agreement (Details) | 12 Months Ended |
Sep. 30, 2015USD ($)shares | |
Details | |
Share issuance on equity method investment | shares | 2,000,000 |
Cash payment on equity method investment | $ 300,000 |
Total payment on equity method investment | $ 1,500,000 |
Note 6 - Available-for-sale E34
Note 6 - Available-for-sale Equity Securities (Details) | 12 Months Ended |
Sep. 30, 2016shares | |
Details | |
Available for sale equity securities owned | 3,000,000 |
Note 6 - Available-for-sale E35
Note 6 - Available-for-sale Equity Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Sep. 30, 2016 | |
Details | ||
Other Significant Noncash Transaction, Value of Consideration Received | $ 222,900 | $ 222,900 |
Available-for-sale Equity Securities, Gross Unrealized Gain | 137,100 | 197,100 |
Available-for-sale Securities, Equity Securities | $ 360,000 | $ 420,000 |
Note 7 - Accrued Expenses_ Sc36
Note 7 - Accrued Expenses: Schedule of Accrued Liabilities (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | |
Details | ||
Financing transaction costs | $ 250,000 | |
Professional and Contract Services Expense | 15,000 | |
Accrued expenses | $ 265,000 | $ 299,000 |
Note 8 - Common Stock, Warran37
Note 8 - Common Stock, Warrants and Preferred Stock (Details) | 3 Months Ended | ||
Dec. 31, 2016$ / sharesshares | Dec. 31, 2015USD ($)shares | Sep. 30, 2016$ / sharesshares | |
Details | |||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ | $ 337,500 | ||
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | 675,000 | ||
Warrants expired during period | 12,500 | ||
Warrants outstanding | 10,000,006 | ||
Exercise price of warrants issued | $ / shares | $ 0.25 | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, Par Value | $ / shares | $ 0.01 | $ 0.01 |
Note 9 - Stock-based Awards (De
Note 9 - Stock-based Awards (Details) | 3 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Details | |
Stock-based compensation | $ | $ 351,966 |
Share Based Compensation Arrangement By Share Based Payment Award Stock Units | 675,000 |
Share Based Compensation Arrangement By Share Based Payment Award Stock Units Fair Value | 337,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 43,837 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 14,466 |
Fair Value Assumptions, Expected Volatility Rate | 110.40% |
Stock price on date of grant | $ / shares | $ 0.50 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years |
Fair Value Assumptions, Risk Free Interest Rate | 0.90% |
Sharebased Compensation Arrangement By Sharebased Payment Award FairValue Assumptions Expected Forfeiture Rate | 0.00% |
Note 9 - Stock-based Awards_ 39
Note 9 - Stock-based Awards: Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | |
Details | ||
Outstanding | 2,055,419 | 2,055,419 |
Weighted Average Exercise Price, Exercisable | $ 0.56 | $ 0.56 |
Weighted average fair value of options granted | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 2 months 16 days |
Note 10 - Related-party Trans40
Note 10 - Related-party Transactions (Details) | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Details | |
Gain (Loss) on Disposition of Property Plant Equipment | $ 2,500 |
Note 11 - Commitments and Con41
Note 11 - Commitments and Contingencies (Details) | 3 Months Ended |
Dec. 31, 2016USD ($) | |
LookoutMountainMember | |
Real Estate Lease Commitments | A portion of our Lookout Mountain mineral claims are subject to a mining lease and agreement dated August 22, 2003 with Rocky Canyon Mining Company, as amended on June 1, 2008. The lease term was extended to 20 years on June 1, 2008, and thereafter for as long as minerals are mined on the project. Under this agreement, we are obligated to make monthly advance royalty payments of $72,000 per annum. |
EurekaMember | |
Real Estate Lease Commitments | A portion of our Eureka mineral claims are subject to two mining leases with purchase option agreements dated July 12, 2012 with Silver International, Inc. The initial term of each of the agreements is ten years and may be extended for four additional periods of five years each. Under these agreements, we are obligated to make annual advance royalty payments of $10,000 per annum. A portion of our Eureka mineral claims are subject to a mining claim lease agreement dated November 1, 2012 with four individuals. The initial term of the agreement is five years and may be extended for an additional five years and annually as long as mining operations are being conducted on the property on a continuous basis. Under this agreement, we are obligated to make annual advance royalty payments of $15,000 per year in 2016 and thereafter. |
TalapoosaMember | |
Real Estate Lease Commitments | A portion of the Talapoosa mineral claims is subject to a mining lease and option to purchase agreement dated June 21, 2011 with Nevada Bighorns Unlimited Foundation. The initial term of the agreement is 20 years and may be extended for an additional 20 years and thereafter as long as minimum payments are being paid and exploration, development or mining activities are taking place. Under this agreement, we are obligated to make annual minimum payments of $10.00 per acre ($12,800) through June 21, 2020, increasing by $5.00 per acre in 2021 and every five years thereafter, subject to a maximum annual payment of $30.00 per acre. A portion of the Talapoosa mineral claims are subject to a mining lease with option to purchase agreement dated June 2, 1997 with Sario Livestock Company. The initial term of the agreement is 20 years and may be extended for an additional period of 20 years. Under this agreement, we are obligated to make a minimum royalty payment of $9,600 per year. If the lease agreement is extended beyond the initial 20-year term, the minimum royalty payments increase to $48,000 per year. Another portion of the Talapoosa mineral claims is subject to a separate mining lease with option to purchase agreement with Sario Livestock Company dated September 11, 1989 and amended on July 13, 2010. The term of the agreement, as amended, is until September 10, 2029, with no right to extend the agreement beyond that date. Under this agreement, we are obligated to make a minimum royalty payment of $30,000 per year. A portion of the Talapoosa mineral claims is subject to a mining lease dated July 14, 1990, as amended on August 25, 1998 and July 13, 2010, with Sierra Denali Minerals Inc. The term of the agreement, as amended in July 2010, is 10 years and may be extended for two additional periods of five years each. Under this amended agreement, we are obligated to make minimum payments of $35,000 per year. Pursuant to the Amended Agreement at Talapoosa (see Note 5), we have an obligation to make a payment of $1 million by March 31, 2017 as well as future payments and property expenditure obligations of $17.5 million. |
FederalAndCountyClaimMaintenanceFeesMember | |
Maintenance fees, mineral exploration properties | $ 285,000 |
Real Estate commitments | |
Real Estate Lease Commitments | The Company has real estate lease commitments related to its facilities in Sparks, Nevada. As of December 31, 2016, lease obligations until the termination of the lease are $21,000. The Company’s office in Coeur d’Alene, Idaho and its facility in Eureka, Nevada are rented on a month-to-month basis. Total office lease and rental expense from continuing operations is included in the following line items in the consolidated statements of operations and comprehensive income (loss): Three months ended December 31, 2016 2015 Mineral exploration expenses $ 12,900 $ 16,050 Other general and administrative expenses 10,500 10,500 Total $ 23,400 $ 26,550 |
Contractual Obligation | $ 21,000 |
Note 11 - Commitments and Con42
Note 11 - Commitments and Contingencies: Schedule of Rent Expense (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Results of Operations Exploration Expense Mining | $ 12,900 | $ 16,050 |
Other General and Administrative Expense | 10,500 | 10,500 |
Operating Leases, Rent Expense | $ 23,400 | $ 26,550 |