Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2021 | May 14, 2021 | |
Registrant CIK | 0001288750 | |
Fiscal Year End | --09-30 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34055 | |
Entity Registrant Name | TIMBERLINE RESOURCES CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-0291227 | |
Entity Address, Address Line One | 101 EAST LAKESIDE AVENUE | |
Entity Address, City or Town | COEUR D’ALENE | |
Entity Address, State or Province | ID | |
Entity Address, Postal Zip Code | 83814 | |
City Area Code | 208 | |
Local Phone Number | 664-4859 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 116,487,724 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
TSX-V | ||
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | TBR | |
Security Exchange Name | NONE | |
OTCQB | ||
Trading Symbol | TLRS | |
Security Exchange Name | NONE |
Timberline Resources Corp and S
Timberline Resources Corp and Subsidiaries Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 | |
CURRENT ASSETS: | |||
Cash | $ 763,937 | $ 2,520,726 | |
Prepaid expenses and other current assets | 76,454 | 14,144 | |
TOTAL CURRENT ASSETS | 840,391 | 2,534,870 | |
PROPERTY, MINERAL RIGHTS AND EQUIPMENT, net | [1] | 13,801,275 | 13,807,655 |
OTHER ASSETS: | |||
Reclamation bonds | 538,696 | 538,696 | |
Deposits and other assets | 5,700 | 5,700 | |
TOTAL OTHER ASSETS | 544,396 | 544,396 | |
TOTAL ASSETS | 15,186,062 | 16,886,921 | |
CURRENT LIABILITIES: | |||
Accounts payable | 58,731 | 173,981 | |
Accrued expenses | 13,585 | 39,440 | |
Accrued expenses - related party | 8,034 | 0 | |
Accrued interest - related party | 183,741 | 142,492 | |
Accrued payroll, benefits and taxes | 37,204 | 23,557 | |
TOTAL CURRENT LIABILITIES | 301,295 | 379,470 | |
LONG-TERM LIABILITIES: | |||
Asset retirement obligation | 115,431 | 112,615 | |
Senior unsecured note payable - related party | 300,000 | 300,000 | |
TOTAL LONG-TERM LIABILITIES | 415,431 | 412,615 | |
TOTAL LIABILITIES | 716,726 | 792,085 | |
COMMITMENTS AND CONTINGENCIES (Note 8) | [1] | 0 | 0 |
STOCKHOLDERS' EQUITY: | |||
Preferred stock, $ 0.01 par value; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 | |
Common stock, $0.001 par value; 500,000,000 shares authorized, 114,337,724 and 112,075,224 shares issued and outstanding, respectively | 114,337 | 112,075 | |
Additional paid-in capital | 80,055,103 | 79,613,593 | |
Accumulated deficit | (65,700,104) | (63,630,832) | |
TOTAL STOCKHOLDERS' EQUITY | 14,469,336 | 16,094,836 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 15,186,062 | $ 16,886,921 | |
[1] | Note 8 |
Timberline Resources Corp and_2
Timberline Resources Corp and Subsidiaries Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares | Mar. 31, 2021 | Sep. 30, 2020 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 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 or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 114,337,724 | 112,075,224 |
Common Stock, Shares, Outstanding | 114,337,724 | 112,075,224 |
Timberline Resources Corp and_3
Timberline Resources Corp and Subsidiaries Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING EXPENSES: | ||||
Mineral exploration | $ 223,546 | $ 12,749 | $ 1,400,072 | $ 159,231 |
Salaries and benefits | 78,261 | 67,324 | 155,918 | 192,614 |
Professional fees | 46,305 | 50,614 | 120,873 | 119,465 |
Insurance expense | 38,818 | 33,436 | 63,601 | 52,178 |
Other general and administrative | 81,419 | 98,150 | 298,756 | 250,322 |
TOTAL OPERATING EXPENSES | 468,349 | 262,273 | 2,039,220 | 773,810 |
LOSS FROM OPERATIONS | (468,349) | (262,273) | (2,039,220) | (773,810) |
OTHER INCOME (EXPENSE): | ||||
Foreign exchange gain (loss) | 4,717 | 392 | 12,128 | 394 |
Loss on debt modification - related party | 0 | 0 | 0 | (195,611) |
Interest expense | 0 | (7,120) | 0 | (19,531) |
Interest expense - related party | (21,547) | (46,034) | (42,234) | (91,112) |
Miscellaneous other income | 20 | 9 | 54 | 25 |
TOTAL OTHER INCOME (EXPENSE) | (16,810) | (52,753) | (30,052) | (305,835) |
LOSS BEFORE INCOME TAXES | (485,159) | (315,026) | (2,069,272) | (1,079,645) |
INCOME TAX PROVISION (BENEFIT) | 0 | 0 | 0 | 0 |
NET LOSS | $ (485,159) | $ (315,026) | $ (2,069,272) | $ (1,079,645) |
NET LOSS PER SHARE BASIC AND DILUTED | $ 0 | $ 0 | $ (0.02) | $ (0.01) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED | 114,180,916 | 74,895,260 | 113,347,269 | 73,952,637 |
Timberline Resources Corp and_4
Timberline Resources Corp and Subsidiaries Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Equity Balance at Sep. 30, 2019 | $ 67,395 | $ 74,568,258 | $ (60,253,741) | $ 14,381,912 |
Equity balance, shares at Sep. 30, 2019 | 67,395,260 | |||
Stock based compensation | $ 0 | 161,100 | 0 | 161,100 |
Common stock and warrants issued for cash | $ 7,500 | 592,500 | 0 | 600,000 |
Common stock and warrants issued for cash | 7,500,000 | |||
Warrants issued with Debt | $ 0 | 170,500 | 0 | 170,500 |
Net loss | $ 0 | 0 | (764,619) | (764,619) |
Equity balance, shares at Dec. 31, 2019 | 74,895,260 | |||
Equity Balance at Dec. 31, 2019 | $ 74,895 | 75,492,358 | (61,018,360) | 14,548,893 |
Equity Balance at Sep. 30, 2019 | $ 67,395 | 74,568,258 | (60,253,741) | 14,381,912 |
Equity balance, shares at Sep. 30, 2019 | 67,395,260 | |||
Equity balance, shares at Mar. 31, 2020 | 74,895,260 | |||
Equity Balance at Mar. 31, 2020 | $ 74,895 | 75,492,358 | (61,333,386) | 14,233,867 |
Equity Balance at Dec. 31, 2019 | $ 74,895 | 75,492,358 | (61,018,360) | 14,548,893 |
Equity balance, shares at Dec. 31, 2019 | 74,895,260 | |||
Net loss | $ 0 | 0 | (315,026) | (315,026) |
Equity balance, shares at Mar. 31, 2020 | 74,895,260 | |||
Equity Balance at Mar. 31, 2020 | $ 74,895 | 75,492,358 | (61,333,386) | 14,233,867 |
Equity Balance at Sep. 30, 2020 | $ 112,075 | 79,613,593 | (63,630,832) | 16,094,836 |
Equity balance, shares at Sep. 30, 2020 | 112,075,224 | |||
Common stock issued for exercise of warrants, Value | $ 950 | 132,050 | 0 | 133,000 |
Common stock issued for exercise of warrants, Shares | 950,000 | |||
Stock based compensation | $ 0 | 127,022 | 0 | 127,022 |
Net loss | $ 0 | 0 | (1,584,113) | (1,584,113) |
Equity balance, shares at Dec. 31, 2020 | 113,025,224 | |||
Equity Balance at Dec. 31, 2020 | $ 113,025 | 79,872,665 | (65,214,945) | 14,770,745 |
Equity Balance at Sep. 30, 2020 | $ 112,075 | 79,613,593 | (63,630,832) | 16,094,836 |
Equity balance, shares at Sep. 30, 2020 | 112,075,224 | |||
Equity balance, shares at Mar. 31, 2021 | 114,337,724 | |||
Equity Balance at Mar. 31, 2021 | $ 114,337 | 80,055,103 | (65,700,104) | 14,469,336 |
Equity Balance at Dec. 31, 2020 | $ 113,025 | 79,872,665 | (65,214,945) | 14,770,745 |
Equity balance, shares at Dec. 31, 2020 | 113,025,224 | |||
Common stock issued for exercise of warrants, Value | $ 1,312 | 182,438 | 0 | 183,750 |
Common stock issued for exercise of warrants, Shares | 1,312,500 | |||
Net loss | $ 0 | 0 | (485,159) | (485,159) |
Equity balance, shares at Mar. 31, 2021 | 114,337,724 | |||
Equity Balance at Mar. 31, 2021 | $ 114,337 | $ 80,055,103 | $ (65,700,104) | $ 14,469,336 |
Timberline Resources Corp and_5
Timberline Resources Corp and Subsidiaries Consoldiated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,069,272) | $ (1,079,645) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Stock based compensation | 127,022 | 161,100 |
Accretion of asset retirement obligation | 2,816 | 4,165 |
Amortization of discount on senior unsecured notes payable - related party | 0 | 31,785 |
Loss on debt modification - related party | 0 | 195,611 |
Changes in assets and liabilities: | ||
Prepaid expenses and other current assets | (62,310) | (27,021) |
Accounts receivable | 0 | 118,525 |
Accounts payable | (115,250) | (81,140) |
Accrued expenses | (25,855) | (84,910) |
Accrued interest | 0 | (8,028) |
Accrued payroll, benefits and taxes | 13,647 | (480) |
Related party advance | 0 | 205,194 |
Increase Decrease Accrued Expenses Related Party | 8,034 | 0 |
Increase Decrease Interest Payable Related Party | 41,249 | 59,327 |
Net cash used by operating activities | (2,079,919) | (505,517) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of mineral rights | (46,000) | 0 |
Proceeds from lease of mineral rights | 52,380 | 58,209 |
Increase decrease in Accrued Cost of Mineral Reclamation | 0 | 12,500 |
Net cash provided by investing activities | 6,380 | 70,709 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock and warrants, net | 0 | 600,000 |
Payments on payment obligation | 0 | (28,294) |
Proceeds from exercise of warrants | 316,750 | 0 |
Net cash provided by financing activities | 316,750 | 571,706 |
Net increase (decrease) in cash and cash equivalents | (1,756,789) | 136,898 |
CASH AT BEGINNING OF PERIOD | 2,520,726 | 30,757 |
CASH AT END OF PERIOD | $ 763,937 | $ 167,655 |
Note 1 - Organization and Descr
Note 1 - Organization and Description of Business | 6 Months Ended |
Mar. 31, 2021 | |
Notes | |
Note 1 - Organization and Description of Business: | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS: Timberline Resources Corporation (“Timberline” or “the Company) 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, the Company reincorporated into the State of Delaware, pursuant to a merger agreement approved by its shareholders. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2021 | |
Notes | |
Note 2 - Summary of Significant Accounting Policies: | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Basis of Presentation and Going Concern For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended September 30, 2020. The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company has incurred losses since its inception. The Company has sufficient cash to fund normal operations and meet all of its obligations for the next 12 months without raising additional funds. However, we are an exploration company with exploration programs that require significant cash expenditures. A significant drilling program, such are those we have planned, can result in depletion of cash and return us to a position of insufficient cash to support normal operations for 12 months. The Company currently has no historical recurring source of revenue, and its ability to continue as a going concern is dependent on its ability to raise capital to fund future exploration and working capital requirements, or the Company’s ability to profitably execute its business plan. The Company’s plans for the long-term return to and continuation as a going concern include financing its future operations through sales of common stock and/or debt and the eventual profitable exploitation of its mining properties. 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. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. b. New Accounting Pronouncements Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. c. Principles of Consolidation d. Exploration Expenditures capitalized costs are expensed in the period the property is abandoned. When it is determined that a mineral deposit can be economically developed as a result of establishing proven and probable reserves, the costs incurred after such determination will be capitalized and amortized over their useful lives. To date, the Company has not established the commercial feasibility of its exploration prospects; therefore, all exploration costs are being expensed. e. Property Holding Costs f. Fair Value At March 31, 2021 and September 30, 2020, the Company had no assets or liabilities accounted for at fair value on a recurring basis or nonrecurring basis. The carrying amounts of financial instruments, including a senior unsecured note payable-related party, approximate fair value at March 31, 2021 and September 30, 2020. g. Cash Equivalents h. Reclamation Bonds i. Estimates and Assumptions j. Property and Equipment k. Asset Impairments - Carrying Value of Property, Mineral Rights and Equipment l. Asset Retirement Obligations – m. Stock-based Compensation The fair value of common stock awards is determined based upon the closing price of the Company’s stock on the grant date of the award. Compensation expense for grants that vest is recognized ratably over the vesting period. n. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities as of March 31, 2021 and 2020 is as follows: March 31, 2021 March 31, 2020 Stock options 5,937,500 5,400,000 Warrants 73,372,170 45,541,908 Total potential dilution 79,309,670 50,941,908 At March 31, 2021 and 2020, the effect of the Company’s common stock equivalents would have been anti-dilutive. Accordingly, only basic EPS is presented. |
Note 3 - Property, Mineral Righ
Note 3 - Property, Mineral Rights, and Equipment | 6 Months Ended |
Mar. 31, 2021 | |
Notes | |
Note 3 - Property, Mineral Rights, and Equipment: | NOTE 3 – PROPERTY, MINERAL RIGHTS, AND EQUIPMENT: The following is a summary of property, mineral rights, and equipment and accumulated depreciation at March 31, 2021 and September 30, 2020, respectively: Expected Useful Lives (years) March 31, 2021 September 30, 2020 Mineral rights - Eureka - $ 13,684,798 $ 13,701,178 Mineral rights – Other - 65,000 55,000 Total mineral rights 13,749,798 13,756,178 Equipment and vehicles 2-5 53,678 53,678 Office equipment and furniture 3-7 70,150 70,150 Land - 51,477 51,477 Total property and equipment 175,305 175,305 Less accumulated depreciation (123,828) (123,828) Property, mineral rights, and equipment, net $ 13,801,275 $ 13,807,655 For the six months ended March 31, 2021 and 2020, the Company received mineral lease payments of $52,380 and $58,209, respectively, from a third party on two property blocks the Company leases at the Company’s Eureka property. Monthly payments in the amount of approximately $8,700 are expected to continue to be received. These receipts are recorded as a reduction to property, mineral rights, and equipment. |
Note 4 - Related-party Transact
Note 4 - Related-party Transactions | 6 Months Ended |
Mar. 31, 2021 | |
Notes | |
Note 4 - Related-party Transactions: | NOTE 4 – RELATED-PARTY TRANSACTIONS: A senior unsecured note payable and interest accrued thereon payable to William Matlack, a shareholder and director of the Company, is disclosed in Note 5. During the year ended September 30, 2020, two directors participated in a private placement offering of units of the Company, purchasing 909,091 units for total proceeds of $100,000. Each Unit was priced at $0.11 and consisted of one share of common stock of the Company and one common share Class L Warrant, with each warrant exercisable to acquire an additional share of common stock of the Company at a price of $0.20 per share until August 15, 2023. The participation of the directors of the Company in this private placement was at arm’s length, on the same terms as other investors in the private placement offering. The Board of Directors approved the insiders’ participation in the private placement. At March 31, 2021, two officers were owed a total of $6,249 for expenses recorded in Accounts payable on the balance sheet that were reimbursed subsequent to the end of the period. Also at March 31, 2021, the Company owed $8,034 related to a former officer’s insurance who remained as a director at that date. |
Note 5 - Senior Unsecured Note
Note 5 - Senior Unsecured Note Payable - Related Party | 6 Months Ended |
Mar. 31, 2021 | |
Notes | |
Note 5 - Senior Unsecured Note Payable - Related Party | NOTE 5 – SENIOR UNSECURED NOTE PAYABLE – RELATED PARTY: On July 30, 2018, the Company entered into a loan agreement and promissory note with William Matlack, a significant shareholder and a director as of October 29, 2019, (the “Lender”). Under the loan agreement, the Lender loaned the Company $300,000 in the form of a senior unsecured note payable, with the principal bearing interest at an annual rate of 18%, compounded monthly. The loan is unsecured and has a maturity date of January 20, 2023. At March 31, 2021 and at September 30, 2020, the senior unsecured note payable was $300,000. The accrued interest on the senior unsecured note payable was $183,741 and $142,492 at March 31, 2021 and September 30, 2020, respectively. Interest expense related to the senior unsecured note payable to this related party was $42,234 and $91,112 for the six months ended March 31, 2021 and March 31, 2020, respectively. The $300,000 senior unsecured note payable is senior to any other debt obtained by the Company subsequent to March 31, 2021. The senior unsecured note payable requires that when the Company enters into any other financings, 25% of the proceeds of such financings will be paid toward reduction of the principal and interest accrued on the note. No payments have been made by the Company to the Lender, and the Lender provided a waiver of default as of September 30, 2020 on the note that would otherwise have occurred due to such non-payment of the 25% of proceeds at the time of the financing in 2020. |
Note 6 - Common Stock, Warrants
Note 6 - Common Stock, Warrants and Preferred Stock | 6 Months Ended |
Mar. 31, 2021 | |
Notes | |
Note 6 - Common Stock, Warrants and Preferred Stock: | NOTE 6 – STOCKHOLDERS’ EQUITY: Common Shares issued for Exercise of Warrants During the six months ended March 31, 2021, holders of Series D Warrants exercised 1,725,000 warrants for $0.14 per share to acquire 1,725,000 shares of the Company’s common stock for total cash proceeds of $241,500 to the Company. Also, holders of Series E Warrants exercised 537,500 warrants for $0.14 per share to acquire 537,500 shares of the Company’s common stock for total cash proceeds of $75,250 to the Company. At March 31, 2021, the Company has a total of 73,372,170 warrants outstanding with a weighted average exercise price of $0.19, a weighted average remaining term of 1.6 years and an intrinsic value of $450,957. |
Note 7 - Stock-based Awards
Note 7 - Stock-based Awards | 6 Months Ended |
Mar. 31, 2021 | |
Notes | |
Note 7 - Stock-based Awards: | NOTE 7 – STOCK-BASED AWARDS: On October 8, 2020, the Company granted a total of 1,100,000 options to purchase shares of the Company’s common stock that expire in five years with an exercise price of $0.25 in conjunction with the appointment of Patrick Highsmith as CEO (750,000 options), Mr. Steven Osterberg as VP-Exploration (250,000 options), and addition of Mr. Quinton Hennigh to the Board of Directors (100,000 options). Of Mr. Highsmith’s options, 187,500 vested immediately, with 187,500 vesting at each of the following three grant anniversary dates. The fair value of the option awards granted and vested during the six months ended March 31, 2021 and 2020 was $127,022 and $161,100, respectively. No options were granted during the three months ended March 31, 2021 or 2020. The fair value of unvested options will be recognized as compensation in the amount of $44,321 in each of the following three years covered by the vesting period. Fair values of options issued were measured on the date of the grant with a Black-Scholes option-pricing model using the assumptions noted in the following table: Options Granted at October 8, 2020 Options Granted at October 29, 2019 Expected volatility 171.9% 149.5% Stock price on date of grant $0.25 $ 0.07 Exercise price $0.25 $ 0.08 Expected dividends - - Expected term (in years) 5 5 Risk-free rate 0.09% 1.66% Expected forfeiture rate 0% 0% The following is a summary of options issued and outstanding at March 31, 2021: Options Weighted Average Exercise Price Outstanding at September 30, 2019 3,280,000 $ 0.26 Granted 2,550,000 0.08 Expired (430,000) (0.43) Outstanding at September 30, 2020 5,400,000 0.09 Granted 1,100,000 0.25 Expired - - Outstanding at March 31, 2021 6,500,000 $ 0.18 Outstanding and exercisable at March 31, 2021 5,937,500 $ 0.17 Weighted average remaining contractual term (years) 2.52 The aggregate of options exercisable as of March 31, 2021 had an intrinsic value of $517,500, based on the closing price of $0.23 per share of the Company’s common stock on March 31, 2021. |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2021 | |
Notes | |
Note 8 - Commitments and Contingencies: | NOTE 8 – COMMITMENTS AND CONTINGENCIES: The Company has the following commitments and contingencies: Mineral Exploration A portion of the Company’s mining claims on the Company’s properties are subject to lease and option agreements with various terms, obligations, and royalties payable in certain circumstances. The Company pays federal and county claim maintenance fees on unpatented claims that are included in the Company’s mineral exploration properties. Should the Company continue to explore all of the Company’s mineral properties, it expects annual fees to total approximately $209,449 per year in the future. Real Estate Lease Commitments At September 30, 2020, the Company had real estate lease commitments for certain mineral properties totaling $72,000 annually. The Company’s office in Coeur d’Alene, Idaho and its facilities in Eureka, Nevada are rented on a month-to-month basis. |
Note 9 - Subsequent Events
Note 9 - Subsequent Events | 6 Months Ended |
Mar. 31, 2021 | |
Notes | |
Note 9 - Subsequent Events: | NOTE 9 – SUBSEQUENT EVENTS: Subsequent to March 31, 2021, holders of Class D and Class H Warrants exercised a total of 2,150,000 warrants for $0.14 per share and received 2,150,000 shares of the Company’s common stock for total cash proceeds of $301,000 to the Company. On May 6, 2021, the Company granted 2,785,000 stock options to directors, officers, and consultants to the Company. |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation and Going Concern (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
a. Basis of Presentation and Going Concern | a. Basis of Presentation and Going Concern For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended September 30, 2020. The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company has incurred losses since its inception. The Company has sufficient cash to fund normal operations and meet all of its obligations for the next 12 months without raising additional funds. However, we are an exploration company with exploration programs that require significant cash expenditures. A significant drilling program, such are those we have planned, can result in depletion of cash and return us to a position of insufficient cash to support normal operations for 12 months. The Company currently has no historical recurring source of revenue, and its ability to continue as a going concern is dependent on its ability to raise capital to fund future exploration and working capital requirements, or the Company’s ability to profitably execute its business plan. The Company’s plans for the long-term return to and continuation as a going concern include financing its future operations through sales of common stock and/or debt and the eventual profitable exploitation of its mining properties. 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. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies: b. New Accounting Pronouncements (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
b. New Accounting Pronouncements | b. New Accounting Pronouncements Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies: c. Principles of Consolidation (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
c. Principles of Consolidation | c. Principles of Consolidation |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies: d. Exploration Expenditures (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
d. Exploration Expenditures | d. Exploration Expenditures capitalized costs are expensed in the period the property is abandoned. When it is determined that a mineral deposit can be economically developed as a result of establishing proven and probable reserves, the costs incurred after such determination will be capitalized and amortized over their useful lives. To date, the Company has not established the commercial feasibility of its exploration prospects; therefore, all exploration costs are being expensed. |
Note 2 - Summary of Significa_6
Note 2 - Summary of Significant Accounting Policies: e. Property Holding Costs (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
e. Property Holding Costs | e. Property Holding Costs |
Note 2 - Summary of Significa_7
Note 2 - Summary of Significant Accounting Policies: f. Fair Value (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
f. Fair Value | f. Fair Value At March 31, 2021 and September 30, 2020, the Company had no assets or liabilities accounted for at fair value on a recurring basis or nonrecurring basis. The carrying amounts of financial instruments, including a senior unsecured note payable-related party, approximate fair value at March 31, 2021 and September 30, 2020. |
Note 2 - Summary of Significa_8
Note 2 - Summary of Significant Accounting Policies: g. Cash Equivalents (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
g. Cash Equivalents | g. Cash Equivalents |
Note 2 - Summary of Significa_9
Note 2 - Summary of Significant Accounting Policies: h. Reclamation Bonds (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
h. Reclamation Bonds | h. Reclamation Bonds |
Note 2 - Summary of Signific_10
Note 2 - Summary of Significant Accounting Policies: i. Estimates and Assumptions (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
i. Estimates and Assumptions | i. Estimates and Assumptions |
Note 2 - Summary of Signific_11
Note 2 - Summary of Significant Accounting Policies: j. Property and Equipment (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
j. Property and Equipment | j. Property and Equipment |
Note 2 - Summary of Signific_12
Note 2 - Summary of Significant Accounting Policies: k. Asset Impairments - Carrying Value of Property, Mineral Rights and Equipment for Impairment (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
k. Asset Impairments - Carrying Value of Property, Mineral Rights and Equipment for Impairment | k. Asset Impairments - Carrying Value of Property, Mineral Rights and Equipment |
Note 2 - Summary of Signific_13
Note 2 - Summary of Significant Accounting Policies: l. Asset Retirement Obligations (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
l. Asset Retirement Obligations | l. Asset Retirement Obligations – |
Note 2 - Summary of Signific_14
Note 2 - Summary of Significant Accounting Policies: m. Stock-based Compensation (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
m. Stock-based Compensation | m. Stock-based Compensation The fair value of common stock awards is determined based upon the closing price of the Company’s stock on the grant date of the award. Compensation expense for grants that vest is recognized ratably over the vesting period. |
Note 2 - Summary of Signific_15
Note 2 - Summary of Significant Accounting Policies: n. Net Income (Loss) per Share (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Policies | |
n. Net Income (Loss) per Share | n. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities as of March 31, 2021 and 2020 is as follows: March 31, 2021 March 31, 2020 Stock options 5,937,500 5,400,000 Warrants 73,372,170 45,541,908 Total potential dilution 79,309,670 50,941,908 At March 31, 2021 and 2020, the effect of the Company’s common stock equivalents would have been anti-dilutive. Accordingly, only basic EPS is presented. |
Note 2 - Summary of Signific_16
Note 2 - Summary of Significant Accounting Policies: n. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | March 31, 2021 March 31, 2020 Stock options 5,937,500 5,400,000 Warrants 73,372,170 45,541,908 Total potential dilution 79,309,670 50,941,908 |
Note 3 - Property, Mineral Ri_2
Note 3 - Property, Mineral Rights, and Equipment: Property, Plant and Equipment (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Property, Plant and Equipment | Expected Useful Lives (years) March 31, 2021 September 30, 2020 Mineral rights - Eureka - $ 13,684,798 $ 13,701,178 Mineral rights – Other - 65,000 55,000 Total mineral rights 13,749,798 13,756,178 Equipment and vehicles 2-5 53,678 53,678 Office equipment and furniture 3-7 70,150 70,150 Land - 51,477 51,477 Total property and equipment 175,305 175,305 Less accumulated depreciation (123,828) (123,828) Property, mineral rights, and equipment, net $ 13,801,275 $ 13,807,655 |
Note 7 - Stock-based Awards_ Su
Note 7 - Stock-based Awards: Summary of fair value of options issued and outstanding (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Options | |
Summary of fair value of options issued and outstanding | Options Granted at October 8, 2020 Options Granted at October 29, 2019 Expected volatility 171.9% 149.5% Stock price on date of grant $0.25 $ 0.07 Exercise price $0.25 $ 0.08 Expected dividends - - Expected term (in years) 5 5 Risk-free rate 0.09% 1.66% Expected forfeiture rate 0% 0% |
Note 7 - Stock-based Awards_ Sh
Note 7 - Stock-based Awards: Share-based Compensation, Stock Options, Activity (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Tables/Schedules | |
Share-based Compensation, Stock Options, Activity | Options Weighted Average Exercise Price Outstanding at September 30, 2019 3,280,000 $ 0.26 Granted 2,550,000 0.08 Expired (430,000) (0.43) Outstanding at September 30, 2020 5,400,000 0.09 Granted 1,100,000 0.25 Expired - - Outstanding at March 31, 2021 6,500,000 $ 0.18 Outstanding and exercisable at March 31, 2021 5,937,500 $ 0.17 Weighted average remaining contractual term (years) 2.52 |
Note 2 - Summary of Signific_17
Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation and Going Concern (Details) | 6 Months Ended |
Mar. 31, 2021 | |
Details | |
Substantial Doubt about Going Concern, Conditions or Events | The Company has incurred losses since its inception. The Company has sufficient cash to fund normal operations and meet all of its obligations for the next 12 months without raising additional funds. However, we are an exploration company with exploration programs that require significant cash expenditures. |
Note 2 - Summary of Signific_18
Note 2 - Summary of Significant Accounting Policies: n. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Details | ||
Stock options | 5,937,500 | 5,400,000 |
Warrants | 73,372,170 | 45,541,908 |
Total potential dilution | 79,309,670 | 50,941,908 |
Note 3 - Property, Mineral Ri_3
Note 3 - Property, Mineral Rights, and Equipment: Property, Plant and Equipment (Details) - USD ($) | 6 Months Ended | ||
Mar. 31, 2021 | Sep. 30, 2020 | ||
Mineral Rights | $ 13,749,798 | $ 13,756,178 | |
Property, Plant and Equipment, Gross | 175,305 | 175,305 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (123,828) | (123,828) | |
Property, mineral rights, and equipment, net | [1] | 13,801,275 | 13,807,655 |
Mineral rights - Eureka | |||
Mineral Rights | 13,684,798 | 13,701,178 | |
Mineral rights - Other | |||
Mineral Rights | $ 65,000 | $ 55,000 | |
Equipment and vehicles | Minimum | |||
Expected Useful Lives (years) | 2 years | ||
Equipment and vehicles | Maximum | |||
Expected Useful Lives (years) | 5 years | ||
Office equipment and furniture | Minimum | |||
Expected Useful Lives (years) | 3 years | ||
Office equipment and furniture | Maximum | |||
Expected Useful Lives (years) | 7 years | ||
[1] | Note 8 |
Note 3 - Property, Mineral Ri_4
Note 3 - Property, Mineral Rights, and Equipment (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Details | ||
Proceeds from lease of mineral rights | $ 52,380 | $ 58,209 |
Note 4 - Related-party Transa_2
Note 4 - Related-party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Common stock issued for exercise of warrants, Value | $ 183,750 | $ 133,000 | ||
Related parties | ||||
Subsequent Event, Description | At March 31, 2021, two officers were owed a total of $6,249 for expenses recorded in Accounts payable on the balance sheet that were reimbursed subsequent to the end of the period. Also at March 31, 2021, the Company owed $8,034 related to a former officer’s insurance who remained as a director at that date | |||
Private placement | ||||
Common stock issued for exercise of warrants, Shares | 909,091 | |||
Common stock issued for exercise of warrants, Value | $ 100,000 | |||
Stock options issued to officer, value | $ 0.11 |
Note 5 - Senior Unsecured Not_2
Note 5 - Senior Unsecured Note Payable - Related Party (Details) - USD ($) | Jul. 30, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 |
Interest Expense | $ 0 | $ 7,120 | $ 0 | $ 19,531 | ||
Senior Unsecured Notes Payable, Transaction #1 | ||||||
Debt Instrument, Issuance Date | Jul. 30, 2018 | |||||
Debt Instrument, Description | loan agreement and promissory note with William Matlack | |||||
Debt Instrument, Face Amount | $ 300,000 | 300,000 | $ 300,000 | $ 300,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 18.00% | |||||
Senior Unsecured Notes Interest Paid | ||||||
Debt Instrument, Increase, Accrued Interest | 183,741 | $ 142,492 | ||||
Interest Expense | $ 42,234 | $ 91,112 |
Note 6 - Common Stock, Warran_2
Note 6 - Common Stock, Warrants and Preferred Stock (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Warrants | 73,372,170 | 45,541,908 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 5,937,500 | |
Warrants | ||
Warrants | 73,372,170 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease), Weighted Average Exercise Price | $ 0.19 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 7 months 6 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 450,957 | |
Sale of Stock, Transaction #1 | ||
Sale of Stock, Description of Transaction | During the six months ended March 31, 2021, holders of Series D Warrants exercised 1,725,000 warrants for $0.14 per share to acquire 1,725,000 shares of the Company’s common stock for total cash proceeds of $241,500 to the Company. Also, holders of Series E Warrants exercised 537,500 warrants for $0.14 per share to acquire 537,500 shares of the Company’s common stock for total cash proceeds of $75,250 to the Company |
Note 7 - Stock-based Awards (De
Note 7 - Stock-based Awards (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Intrinsic value of options outstanding and exercisable | $ 517,500 | |
Shares Issued, Price Per Share | $ 0.23 | |
Stock-based Award #2 | ||
Sale of Stock, Transaction Date | Oct. 8, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 1,100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 0.25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 127,022 | $ 161,100 |
Note 7 - Stock-based Awards_ _2
Note 7 - Stock-based Awards: Summary of fair value of options issued and outstanding (Details) - Options - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Expected volatility | 171.90% | 149.50% |
Exercise price | $ 0.25 | $ 0.08 |
Expected dividends | $ 0 | $ 0 |
Expected term (in years) | 5 years | 5 years |
Risk-free rate | 0.09% | 1.66% |
Expected forfeiture rate | 0.00% | 0.00% |
Note 7 - Stock-based Awards_ _3
Note 7 - Stock-based Awards: Share-based Compensation, Stock Options, Activity (Details) - USD ($) | 6 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||
Outstanding | 6,500,000 | 5,400,000 | 3,280,000 | |
Weighted Average Exercise Price, Outstanding | $ 0.18 | $ 0.09 | $ 0.26 | |
Granted | 1,100,000 | 2,550,000 | ||
Weighted Average Exercise Price, Granted | $ 0.25 | $ 0.08 | ||
Expired | (430,000) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 5,937,500 | |||
Weighted Average Exercise Price, Outstanding | $ 0.17 | |||
Weighted average fair value of options granted | $ 2.52 |
Note 8 - Commitments and Cont_2
Note 8 - Commitments and Contingencies (Details) | 6 Months Ended |
Mar. 31, 2021 | |
Other Commitments, Description | At September 30, 2020, the Company had real estate lease commitments for certain mineral properties totaling $72,000 annually |
Commtment or Contingency #1 | |
Other Commitments, Description | A portion of the Company’s mining claims on the Company’s properties are subject to lease and option agreements with various terms, obligations, and royalties payable in certain circumstances |
Commtment or Contingency #2 | |
Other Commitments, Description | The Company pays federal and county claim maintenance fees on unpatented claims that are included in the Company’s mineral exploration properties. |
Note 9 - Subsequent Events (Det
Note 9 - Subsequent Events (Details) | 6 Months Ended |
Mar. 31, 2021 | |
Event #1 | |
Subsequent Event, Description | Subsequent to March 31, 2021, holders of Class D and Class H Warrants exercised a total of 2,150,000 warrants |
Event #2 | |
Subsequent Event, Description | On May 6, 2021, the Company granted 2,785,000 stock options to directors, officers, and consultants to the Company |