Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 31, 2014 | Mar. 17, 2014 | |
Document and Entity Information: | ' | ' | ' |
Entity Registrant Name | 'Athena Silver Corporation | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001304409 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 36,002,320 | ' |
Entity Public Float | ' | ' | $3,159,931 |
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 | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Incorporation, State Country Name | 'Delaware | ' | ' |
Entity Incorporation, Date of Incorporation | 23-Dec-03 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Cash and cash equivalents | $16,934 | $12,229 |
Prepaid expenses | ' | 37,000 |
Total current assets | 16,934 | 49,229 |
Mineral rights and properties | 1,689,297 | 1,130,162 |
Total assets | 1,706,231 | 1,179,391 |
Current liabilities: | ' | ' |
Accounts payable | 70,195 | 128,935 |
Accrued liabilities | 71,250 | 63,334 |
Due to related parties | 50,735 | 8,640 |
Advances payable - related parties | ' | 1,000 |
Derivative warrant liability | 17,500 | 51,823 |
Convertible notes payable - related parties | 990,000 | 555,000 |
Total current liabilities | 1,199,680 | 808,732 |
Shareholders' equity: | ' | ' |
Common stock | 3,600 | 3,500 |
Additional paid-in capital | 6,580,048 | 6,086,148 |
Accumulated deficit - prior to exploration stage | -3,601,431 | -3,601,431 |
Accumulated deficit - exploration stage | -2,475,666 | -2,117,558 |
Total shareholders' equity | 506,551 | 370,659 |
Total liabilities and shareholders' equity | $1,706,231 | $1,179,391 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS - PARENTHETICAL (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 36,002,320 | 35,002,320 |
Common Stock, Shares Outstanding | 36,002,320 | 35,002,320 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | 48 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Operating expenses: | ' | ' | ' |
Exploration costs | $49,517 | $231,751 | $888,885 |
Other operating costs | 1,490 | 340 | 113,272 |
General and administrative expenses | 298,414 | 319,636 | 1,125,109 |
Total operating expenses | 349,421 | 551,727 | 2,127,266 |
Operating Income (Loss) | -349,421 | -551,727 | -2,127,266 |
Other income (expense): | ' | ' | ' |
Interest expense | -43,011 | -11,439 | -65,566 |
Change in fair value of warrant liability | 34,323 | -15,930 | 18,393 |
Gain (Loss) on extinguishment of debt and accounts payable - related parties, net | ' | -56,741 | -236,741 |
Other income | 1 | 14 | 980 |
Total other income (expense) | -8,687 | -84,096 | -282,934 |
Income (Loss) from continuing operations | -358,108 | -635,823 | -2,410,200 |
Net Income (Loss) from discontinued operations | ' | ' | -65,466 |
Net Income (Loss) | ($358,108) | ($635,823) | ($2,475,666) |
Basic and diluted net loss per share from continuing operations | ($0.01) | ($0.02) | ' |
Basic and diluted net income (loss) per common share | ($0.01) | ($0.02) | ' |
Basic and diluted weighted-average common shares outstanding | 35,859,854 | 33,493,778 | ' |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Common Stock | Additional Paid-in Capital | Accumulated Deficit Prior to Exploration Stage | Accumulated Deficit During Exploration Stage | Total |
Balance, Value at Dec. 31, 2009 | $2,000 | $2,544,625 | ($3,601,431) | ' | ($1,054,806) |
Balance, Shares at Dec. 31, 2009 | 20,000,000 | ' | ' | ' | ' |
Common stock issued for cash, net, Value | 475 | 474,525 | ' | ' | 475,000 |
Common stock issued for cash, net, Shares | 4,750,000 | ' | ' | ' | ' |
Common stock issued for mineral rights, Value | 23 | 73,377 | ' | ' | 73,400 |
Common stock issued for mineral rights, Shares | 230,000 | ' | ' | ' | ' |
Common stock issued loan fees, Value | 5 | 4,995 | ' | ' | 5,000 |
Common stock issued loan fees, Shares | 50,000 | ' | ' | ' | ' |
Common stock issued for debt, Value | 100 | 279,900 | ' | ' | 280,000 |
Common stock issued for debt, Shares | 1,000,000 | ' | ' | ' | ' |
Common stock issued for accounts payable, Value | 86 | 93,364 | ' | ' | 93,450 |
Common stock issued for accounts payable, Shares | 861,500 | ' | ' | ' | ' |
Common stock issued for indemnification agreement, Value | 250 | 994,982 | ' | ' | 995,232 |
Common stock issued for indemnification agreement, Shares | 2,500,000 | ' | ' | ' | ' |
Net Income (Loss) | ' | ' | ' | -612,251 | -612,251 |
Balance, Value at Dec. 31, 2010 | 2,939 | 4,465,768 | -3,601,431 | -612,251 | 255,025 |
Balance, Shares at Dec. 31, 2010 | 29,391,500 | ' | ' | ' | ' |
Common stock issued for cash, net, Value | 243 | 570,963 | ' | ' | 571,206 |
Common stock issued for cash, net, Shares | 2,430,000 | ' | ' | ' | ' |
Common stock issued for mineral rights, Value | 38 | 168,864 | ' | ' | 168,902 |
Common stock issued for mineral rights, Shares | 375,337 | ' | ' | ' | ' |
Common stock issued for services, Value | 21 | 55,752 | ' | ' | 55,773 |
Common stock issued for services, Shares | 208,449 | ' | ' | ' | ' |
Share based compensation | ' | 37,688 | ' | ' | 37,688 |
Spin-off dividend | ' | -7,348 | ' | ' | -7,348 |
Net Income (Loss) | ' | ' | ' | -869,484 | -869,484 |
Balance, Value at Dec. 31, 2011 | 3,241 | 5,291,687 | -3,601,431 | -1,481,735 | 211,762 |
Balance, Shares at Dec. 31, 2011 | 32,405,286 | ' | ' | ' | ' |
Common stock issued for cash, net, Value | 24 | 59,976 | ' | ' | 60,000 |
Common stock issued for cash, net, Shares | 240,000 | ' | ' | ' | ' |
Common stock issued for mineral rights, Value | 108 | 342,153 | ' | ' | 342,261 |
Common stock issued for mineral rights, Shares | 1,084,710 | ' | ' | ' | ' |
Common stock issued for debt and interest, Value | 115 | 344,082 | ' | ' | 344,197 |
Common stock issued for debt and interest, Shares | 1,147,324 | ' | ' | ' | ' |
Common stock issued for accounts payable, Value | 12 | 32,238 | ' | ' | 32,250 |
Common stock issued for accounts payable, Shares | 125,000 | ' | ' | ' | ' |
Share based compensation | ' | 16,012 | ' | ' | 16,012 |
Net Income (Loss) | ' | ' | ' | -635,823 | -635,823 |
Balance, Value at Dec. 31, 2012 | 3,500 | 6,086,148 | -3,601,431 | -2,117,558 | 370,659 |
Balance, Shares at Dec. 31, 2012 | 35,002,320 | ' | ' | ' | ' |
Common stock issued for mineral rights, Value | 100 | 339,900 | ' | ' | 340,000 |
Common stock issued for mineral rights, Shares | 1,000,000 | ' | ' | ' | ' |
Share based compensation | ' | 154,000 | ' | ' | 154,000 |
Net Income (Loss) | ' | ' | ' | -358,108 | -358,108 |
Balance, Value at Dec. 31, 2013 | $3,600 | $6,580,048 | ($3,601,431) | ($2,475,666) | $506,551 |
Balance, Shares at Dec. 31, 2013 | 36,002,320 | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | 48 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Cash flows from operating activities: | ' | ' | ' |
Net Income (Loss) | ($358,108) | ($635,823) | ($2,475,666) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Amortization of deferred financing costs | ' | ' | 5,000 |
Share-based compensation expense | 154,000 | 16,012 | 209,773 |
Common stock issued for services | ' | ' | 53,700 |
Derivative warrants issued for services | ' | 35,793 | 35,793 |
Change in fair value of derivative warrant liability | -34,323 | 15,930 | -18,393 |
Loss on extinguishment of debt - related parties | ' | 57,366 | 237,366 |
Gain on extinguishment of accounts payable | ' | -625 | -625 |
Loss on sale of discontinued operations | ' | ' | 9,892 |
Changes in operating assets and liabilities: | ' | ' | ' |
Account receivable | ' | ' | 11,104 |
Prepaid expenses | 37,000 | 3,580 | 1,000 |
Inventory | ' | ' | 46,385 |
Other assets | ' | ' | 11,036 |
Accounts payable | -58,740 | 82,289 | 128,669 |
Accrued liabilities and other liabilities | 35,876 | 6,588 | 118,267 |
Net cash used in operating activities | -224,295 | -418,890 | -1,626,699 |
Cash flows from investing activities: | ' | ' | ' |
Acquisition of mineral rights | -205,000 | -338,803 | -703,098 |
Investment in nonmarketable equity securities | ' | ' | -7,348 |
Cash used in disposition of fixed assets, intangibles and other | ' | ' | -82 |
Net cash used in investing activities | -205,000 | -338,803 | -710,528 |
Cash flows from financing activities: | ' | ' | ' |
Net change in advances payable - related parties | -1,000 | 250 | -13,295 |
Borrowings from notes payable - related parties | 435,000 | 705,000 | 1,300,000 |
Repayments of notes payable - related parties | ' | ' | -38,750 |
Proceeds from sale of common stock, net | ' | 60,000 | 1,106,206 |
Net cash provided by financing activities | 434,000 | 765,250 | 2,354,161 |
Net increase (decrease) in cash | 4,705 | 7,557 | 16,934 |
Cash at beginning of period | 12,229 | 4,672 | ' |
Cash at end of period | 16,934 | 12,229 | 16,934 |
Supplemental disclosure of cash flow information | ' | ' | ' |
Cash paid for interest | ' | ' | 6,714 |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' | ' |
Increase in accrued liabilities applicable to mineral rights | 7,916 | 7,918 | 71,250 |
Common stock issued for mineral rights | 340,000 | 342,261 | 924,563 |
Common stock issued for accounts payable | ' | 32,250 | 125,700 |
Common stock issued for due to related parties | ' | 8,197 | 8,197 |
Common stock issued for notes and advances payable - related parties | ' | 336,000 | 616,000 |
Common stock issued for deferred financing costs | ' | ' | 5,000 |
Spin-off dividend | ' | ' | 7,348 |
Common stock issued for indemnity agreement - related parties: | ' | ' | ' |
Indemnification - GWBC accounts payable | ' | ' | 201,404 |
Indemnification - GWBC accrued liabilities | ' | ' | 177,899 |
Indemnification - GWBC short-term debt | ' | ' | $295,697 |
Note_1_Organization_Liquidity_
Note 1: Organization, Liquidity and Going Concern | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 1: Organization, Liquidity and Going Concern | ' |
Note 1: Organization, Liquidity and Going Concern | |
Nature of Operations | |
Athena Silver Corporation (“we,” “our,” “us,” or “Athena”) is an exploration stage company engaged in the acquisition and exploration of mineral resources. We were incorporated in Delaware on December 23, 2003, and we became an exploration stage company effective January 1, 2010. We have not presently determined whether our mineral properties contain mineral reserves that are economically recoverable. | |
In December 2009, we formed and organized a new wholly-owned subsidiary, Athena Minerals, Inc. (“Athena Minerals”) to take an assignment of a Sale and Purchase Agreement and Joint Escrow Instructions dated December 4, 2009 (the “Purchase Agreement”). The Purchase Agreement granted us an option to purchase a group of 20 patented mining claims (the “Langtry Property”) totaling approximately 413 acres located in the Calico Mining District at the base of the Calico Mountains northeast of Barstow, California. | |
In March 2010, we entered into a Mining Lease with Option to Purchase which superseded the Purchase Agreement and granted us a 20 year lease to develop and conduct mining operations on the Langtry Property, also with an option to purchase. In February 2012 and December 2013, certain provisions of the Mining Lease were amended, as further discussed below. | |
Going forward, our primary focus will be to continue our evaluation of the Langtry Property including the possible acquisition of additional mineral rights and additional exploration, development and permitting activities. Our mineral lease payments, permitting applications and exploration and development efforts will require additional capital. | |
Liquidity and Going Concern | |
Our consolidated financial statements have been prepared on a going concern basis which assumes that we will be able to meet our obligations and continue our operations during the next fiscal year. Asset realization values may be significantly different from carrying values as shown in our consolidated financial statements and do not give effect to adjustments that would be necessary to the carrying values of assets and liabilities should we be unable to continue as a going concern. | |
At December 31, 2013, we had not yet achieved profitable operations and we have accumulated losses of $6,077,097 since our inception. We expect to incur further losses in the development of our business, all of which casts substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern depends on our ability to generate future profits and/or to obtain the necessary financing to meet our obligations arising from normal business operations when they come due. On December 31, 2013 we amended our credit agreement with Mr. John Gibbs, a related party, to increase the borrowing limit under the line of credit to $1,250,000, which provides the Company an additional $260,000 available under the credit line at December 31, 2013. We anticipate that additional funding will be in the form of additional loans from officers, directors or significant shareholders, or equity financing from the sale of our common stock. Currently, there are no arrangements in place for additional equity funding or new loans. |
Note_2_Summary_of_Significant_
Note 2: Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 2: Summary of Significant Accounting Policies | ' |
Note 2: Summary of Significant Accounting Policies | |
Basis of Presentation and Principles of Consolidation | |
Our consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiary, Athena Minerals, Inc. All intercompany transactions and balances have been eliminated. Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
Exploration Stage Company | |
We are an exploration stage company and accordingly, all losses accumulated since inception of the exploration stage have been considered as part of our exploration stage activities. | |
Reclassifications | |
Certain reclassifications may have been made to our prior year’s consolidated financial statements to conform to our current year presentation. These reclassifications had no effect on our previously reported results of operations or accumulated deficit. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of expenses during the periods presented. | |
We make our estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available. | |
We believe that our significant estimates, assumptions and judgments are reasonable, based upon information available at the time they were made. Actual results could differ from these estimates, making it possible that a change in these estimates could occur in the near term. | |
Fair Value of Financial Instruments | |
We value our financial assets and liabilities using fair value measurements. Our financial instruments primarily consist of cash and cash equivalents, accounts payable, accrued liabilities, amounts due to related parties and notes payable to related parties. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount of cash and cash equivalents, accounts payable, accrued liabilities, notes payable to related parties and other amounts due to related parties approximates fair value because of the short-term nature of these financial instruments. | |
Concentrations of Credit Risk | |
Our financial instruments which potentially subject us to credit risk are our cash and cash equivalents. We maintain our cash and cash equivalents at reputable financial institutions and currently, we are not exposed to significant credit risk. | |
Cash and Cash Equivalents | |
We consider all amounts on deposit with financial institutions and highly liquid investments with an original maturity of three months or less to be cash equivalents. | |
Deferred Financing Costs | |
Transaction fees, if any, incurred in connection with our related-party debt are recorded as deferred financing costs in the consolidated balance sheets and amortized to interest expense in the accompanying consolidated statements of operations using the straight-line method, which approximates the effective interest method, over the term of the underlying debt agreement. When a loan is paid in full, any unamortized financing costs are removed from the related accounts and charged to operations. | |
Mineral Rights - Unproven | |
We have determined that our mining rights meet the definition of mineral rights, as defined by accounting standards, and are tangible assets. As a result, our direct costs to acquire or lease mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated with: leasing or acquiring patented and unpatented mining claims; leasing mining rights including lease signature bonuses, lease rental payments and advance minimum royalty payments; and options to purchase or lease mineral properties. | |
If we establish proven and probable reserves for a mineral property and establish that the mineral property can be economically developed, mineral rights will be amortized over the estimated useful life of the property following the commencement of commercial production or expensed if it is determined that the mineral property has no future economic value or if the property is sold or abandoned. For mineral rights in which proven and probable reserves have not yet been established, we assess the carrying values for impairment at the end of each reporting period and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. | |
The net carrying value of our mineral rights represents the fair value at the time the mineral rights were acquired less accumulated depletion and any impairment losses. Proven and probable reserves have not been established for mineral rights as of December 31, 2013. No impairment loss was recognized during the years ended December 31, 2013 and 2012, and mineral rights are net of $0 of impairment losses as of December 31, 2013. | |
Impairment of Long-lived Assets | |
We continually monitor events and changes in circumstances that could indicate that our carrying amounts of long-lived assets, including mineral rights, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. | |
Notes Payable and Credit Facility– Related Parties | |
Notes payable and the credit facility payable to related parties are classified as current liabilities as the note holders are control persons and have the ability to control the repayment dates of the notes. | |
Exploration Costs | |
Mineral exploration costs are expensed as incurred. When it has been determined that it is economically feasible to extract minerals and the permitting process has been initiated, exploration costs incurred to further delineate and develop the property are considered pre-commercial production costs and will be capitalized and included as mine development costs in our consolidated balance sheets. | |
Share-based Payments | |
We measure and recognize compensation expense or professional services expense for all share-based payment awards made to employees, directors and non-employee consultants based on estimated fair values. We estimate the fair value of stock options on the date of grant using the Black-Scholes-Merton option pricing model, which includes assumptions for expected dividends, expected share price volatility, risk-free interest rate, and expected life of the options. Our expected volatility assumption is based on our historical weekly closing price of our stock over a period equivalent to the expected life of the options. | |
We expense share-based compensation, adjusted for estimated forfeitures, using the straight-line method over the vesting term of the award for our employees and directors and over the expected service term for our non-employee consultants. We estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from our estimates. Our excess tax benefits, if any, cannot be credited to stockholders’ equity until the deduction reduces cash taxes payable; accordingly, we realized no excess tax benefits during any of the periods presented in the accompanying consolidated financial statements. | |
Income Taxes | |
We account for income taxes through the use of the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and for income tax carry-forwards. A valuation allowance is recorded to the extent that we cannot conclude that realization of deferred tax assets is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. | |
We follow a two-step approach to recognizing and measuring tax benefits associated with uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if, based on the technical merits, it is more likely than not that the tax position will be sustained upon examination by a taxing authority, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement with a taxing authority. We recognize interest and penalties, if any, related to uncertain tax positions in our provision for income taxes in the consolidated statements of operations. To date, we have not recognized any tax benefits from uncertain tax positions. | |
Net Loss per Common Share | |
We compute basic net loss per common share by dividing our net loss attributable to common shareholders by our weighted-average number of common shares outstanding during the period. Computation of diluted net loss per common share is similar to our computation of basic net loss per common share except that the numerator is increased to exclude charges which would not have been incurred, and the denominator is increased to include the number of additional common shares that would have been outstanding (using the if-converted and treasury stock methods) if securities containing potentially dilutive common shares (stock options and convertible debt) had been converted to common shares, and if such assumed conversion is dilutive. | |
All potential common shares outstanding have been excluded from diluted net loss per common share because the impact of such inclusion would be anti-dilutive. Our total potential common shares outstanding at December 31, 2013 and 2012, were 893,000 and 293,000, respectively, and were comprised of common stock purchase warrants and shares underlying outstanding stock options. | |
New Accounting Standards | |
From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification are communicated through issuance of an Accounting Standards Update. Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on our consolidated financial statements upon adoption. |
Note_3_Mineral_Rights_and_Prop
Note 3 - Mineral Rights and Properties | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Notes | ' | |||||
Note 3 - Mineral Rights and Properties: | ' | |||||
Note 3 – Mineral Rights and Properties | ||||||
Our mineral rights and mineral properties consist of: | ||||||
31-Dec-13 | 31-Dec-12 | |||||
Mineral properties – Section 13 Property | $ | 135,684 | $ | 135,684 | ||
Mineral rights – Langtry Project | 1,553,613 | 994,478 | ||||
Mineral rights and properties | $ | 1,689,297 | $ | 1,130,162 | ||
Mineral Properties | ||||||
In May 2012, we purchased 661 acres of land (“Section 13 Property”) in fee simple for $135,684 cash, located in San Bernardino County, California, that was sold in a property tax auction conducted on behalf of the County. The parcel is all of Section 13 located in Township 7 North, Range 4 East, San Bernardino Base & Meridian. | ||||||
The Section 13 property is near the Lava Beds Mining District and has evidence of historic mining. It is adjacent to both the Silver Cliffs and Silver Bell historic mines. The property is located in the same regional geologic area known as the Western Mojave Block that includes our flagship Langtry Project. The property is approximately 28 miles southeast of our Langtry Project. | ||||||
Mineral Rights | ||||||
In March 2010, we entered into a 20 year Mining Lease with Option to Purchase (the “Langtry Lease” or the “Lease”) granting us the exclusive right to explore, develop and conduct mining operations on a group of 20 patented mining claims that comprise our Langtry Property. | ||||||
On February 20, 2013, and representing payment in full of the equity consideration in accordance with the terms of the Lease, we issued to the lessor 1,000,000 common shares valued at $340,000, or $0.34 per share, which was the closing price of our common stock on February 20, 2013. We capitalized the $340,000 fair value of common shares issued as an increase to mineral rights and properties on our balance sheet. | ||||||
On March 15, 2012, in accordance with the terms of the Lease, we issued to the lessor 53,846 common shares valued at $12,385, or $0.23 per share, which was the closing price of our common stock on March 14, 2012. We capitalized the $12,385 fair value of common shares issued as an increase to mineral rights and properties on our balance sheet. | ||||||
On November 28, 2012 and again on December 17, 2013, the Lease was amended to change certain provisions of the original agreement. The following is a summary of the material provisions of the Langtry Lease, and as modified by Amendments 1 and 2: | ||||||
· The Lease commenced March 15, 2010, and has a term of 20 years expiring March 15, 2030; with an option to extend an additional five years to 2035, and thereafter for so long as there is commercial silver production (defined as at least 100,000 troy ounces of aggregate production). | ||||||
· Upon signing, we paid the lessor $50,000 in cash and issued 220,000 common shares with a fair value of $70,400, or $0.32 per share, as initial consideration for granting us the Lease. | ||||||
· The original Lease required us to issue to the lessor, on March 15th of each year 2011 through 2015, additional common shares so that the lessor retains an undiluted 1% equity interest in Athena as additional consideration for granting us the Lease (an “Anti-dilution Provision”). | ||||||
· On March 15, 2011, we issued the lessor 228,940 common shares so that the lessor retained an additional undiluted 1% interest in Athena as part of our first year lease rental payment in addition to our annual cash rental payments described below. | ||||||
· A second Anti-dilution Provision under the Lease requires us to issue to the lessor, on March 15th of each year 2011 through 2015, additional common shares so that the lessor retains an additional undiluted 1% equity interest in Athena on those dates as lease rental payments in addition to our annual cash rental payments described below. On March 16, 2012, we issued the lessor an additional 53,846 shares of common stock in satisfaction of this Anti-Dilution provision. | ||||||
· The Lease requires us to pay annual cash lease rental payments, in arrears, of $60,000 to $100,000 on March 15th of each year during the first five years of the Lease. | ||||||
· The original Lease required us to pay annual cash lease rental payments, in arrears, of $100,000 to $200,000 (or the market price of 10,000 to 20,000 troy ounces of silver, whichever is higher) on March 15th of each year during the final 15 years of the Lease (i.e. 2016 through 2030) (the “Silver Price Link to Rent”). | ||||||
· The lessor is entitled to a royalty of 3% of mineral production beginning in the sixth year of the Lease. | ||||||
The Amendments 1 and 2 (the “Amendments”) modified the foregoing provisions in the following manner: | ||||||
1. Concurrently with the execution of Amendment 1, we issued to the lessor an aggregate of 1,030,864 common shares, of which 30,864 shares were issued under the Anti-Dilution provisions and 1.0 million shares were part of the Equity Consideration under the Amendment; | ||||||
2. On February 20, 2013, we issued to lessor an additional 1.0 million common shares representing payment in full of the Equity Consideration under the Amendment. | ||||||
3. Amendment 2 further modified the due dates for certain cash payments to the lessor (the “Cash Consideration”): | ||||||
i. $125,000 on or before November 30, 2012, which has been paid | ||||||
ii. $125,000 on or before February 15, 2013, which has been paid | ||||||
iii. $250,000 on or before January 15, 2015 | ||||||
iv. $500,000 on or before January 15, 2016; and | ||||||
v. $1.0 million on or before January 15, 2017. | ||||||
· Upon making the first two installment payments, the Anti-Dilution Provisions of the Lease were eliminated in their entirety. | ||||||
· Upon payment in full of both the Equity Consideration (which has been completed) and Cash Consideration, the lessor’s 3% net smelter royalty on production will be eliminated. | ||||||
· Rent for the years 2016 through 2020 is capped at $100,000 per year unless Commercial Silver Production has been achieved. | ||||||
· We have the right to eliminate the Silver Price Link to Rent from 2020 through March 15, 2026 by making a one-time payment to lessor in an amount equal to the London Silver Fix price of 25,000 troy ounces of silver. The elimination of the Silver Price Link to Rent will be rescinded, however, if and when we achieve Commercial Silver Production. | ||||||
· Provided we have paid to the lessor the portions of the Cash and Equity Considerations due on or before November 30, 2012 and February 15, 2013 (these have been paid), and all payments due to the lessor under the terms of the Lease Option for the period beginning January 15, 2015 and ending March 15, 2016, we shall have the right upon 30 days written notice, to purchase the Langtry Property for $10.0 million plus transaction costs. | ||||||
· Under the Langtry Lease we declared our intention to expend a minimum of $2.0 million in permitting and other preproduction costs prior to March 15, 2015. If we fail to make these expenditures we will be deemed to be in breach of the Lease and the lessor will have the option to terminate the Lease by giving us 30 days written notice. The Lease also provides us with the right to terminate the Lease without penalty on March 15th of each year during the lease term by giving the lessor 30 days written notice of termination on or before February 13th of each year. All commitments and obligations under the Lease have been fulfilled to date. | ||||||
· The Langtry Property is also subject to a three percent (3%) net smelter royalty in favor of Mobil Exploration and Producing North America Inc. from the sale of concentrates, precipitates or metals produced from ores mined from the royalty acreage. In addition, there is an additional incremental 2% royalty on net smelter proceeds from silver sales above $10.00 per troy ounce plus an additional incremental 2% royalty on net smelter proceeds from silver sales above $15.00 per troy ounce. | ||||||
· During the term of the Lease, Athena Minerals has the exclusive right to develop and conduct mining operations on the Langtry Property. Future lease payments and/or exploration and development of this property will require new equity and/or debt capital. | ||||||
During the year ended December 31, 2013 we capitalized $559,135 of lease rental and lease amendment payments related to amendment of the lease and associated buy-down of a royalty payable to the lessor. These amounts are an increase to mineral rights and properties. |
Note_4_Fair_Value_of_Financial
Note 4 - Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Notes | ' | |||||||||||||
Note 4 - Fair Value of Financial Instruments: | ' | |||||||||||||
Note 4 - Fair Value of Financial Instruments | ||||||||||||||
Financial assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels: | ||||||||||||||
Level 1— Quoted market prices in active markets for identical assets or liabilities at the measurement date. | ||||||||||||||
Level 2— Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data. | ||||||||||||||
Level 3— Inputs reflecting management’s best estimates and assumptions of what market participants would use in pricing assets or liabilities at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. | ||||||||||||||
A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | ||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis are summarized below: | ||||||||||||||
Carrying Value at December 31, 2013 | Fair Value Measurement at December 31, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Derivative warrant liability | $ | 17,500 | $ | — | $ | — | $ | 17,500 | ||||||
The carrying amount of cash and cash equivalents, prepaid expenses, accounts payable and accrued liabilities approximates fair value because of the short-term nature of these financial instruments. We are unable to estimate the fair value of amounts due to related parties, including advances payable and our credit facility to related parties, without incurring excessive costs because quoted market prices are not available, we have not developed the valuation model necessary to make these estimates, and the cost of obtaining independent valuations would be excessive. |
Note_5_Derivative_Warrant_Liab
Note 5 - Derivative Warrant Liability | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Notes | ' | |||||
Note 5 - Derivative Warrant Liability: | ' | |||||
Note 5 – Derivative Warrant Liability | ||||||
Effective February 7, 2012, and pursuant to an Advisor Agreement with GVC Capital, LLC dated January 30, 2012, we sold and issued warrants exercisable to purchase an aggregate of 143,000 common shares at an exercise price of $0.25 per share at any time within five years of the date of their issuance in consideration of $100 cash and investor relation services with a fair value of $35,793. The warrants have anti-dilution provisions, including a provision for adjustments to the exercise price and to the number of warrant shares purchasable if we issue or sell common shares at a price less than the then current exercise price. | ||||||
We determined that the warrants were not afforded equity classification because the warrants are not considered to be indexed to our own stock due to the anti-dilution provision. Accordingly, the warrants are treated as a derivative liability and are carried at fair value. We estimate the fair value of these derivative warrants at each balance sheet date and the changes in fair value are recognized in earnings in our condensed consolidated statement of operations under the caption “change in fair value of derivative warrant liability” until such time as the derivative warrants are exercised or expire. | ||||||
The change in fair value of our derivative warrant liability is as follows: | ||||||
Year Ended December 31, 2013 | ||||||
Balance – December 31, 2012 | $ | 51,823 | ||||
Total (gains) or losses (realized/unrealized): | ||||||
Included in net loss | (34,323) | |||||
Balance – December 31, 2013 | $ | 17,500 | ||||
We estimate the fair value of our derivative warrants on the date of issuance and each subsequent balance sheet date using the Black-Scholes option pricing model, which includes assumptions for expected dividends, expected share price volatility, risk-free interest rate, and expected life of the warrants. Currently, we believe that the potential impact to the fair value of our derivative warrants attributable to the anti-dilution provision is insignificant and we will consider using a lattice model for purposes of valuation if and when the fair value of the anti-dilution provision becomes significant. Our expected volatility assumption is based on our historical weekly closing price of our stock over a period equivalent to the expected remaining life of the derivative warrants. | ||||||
The following table summarizes the assumptions used to value our derivative warrants at December 31, 2013: | ||||||
Fair value assumptions – derivative warrants: | Year Ended December 31, 2013 | |||||
Risk free interest rate | 0.78% | |||||
Expected term (years) | 3.1 | |||||
Expected volatility | 91% | |||||
Expected dividends | 0% |
Note_6_Convertible_Notes_Payab
Note 6 - Convertible Notes Payable - Related Parties | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 6 - Convertible Notes Payable - Related Parties: | ' |
Note 6 – Convertible Notes Payable – Related Parties | |
Notes Payable – Related Parties | |
Effective July 18, 2012, we entered into a Credit Agreement with Mr. Gibbs, a significant shareholder, providing us with an unsecured credit facility in the maximum amount of $1,000,000. The aggregate principal amount borrowed, together with interest at the rate of 5% per annum, is due in full on July 31, 2014, and is convertible, at the option of the lender, into common shares at a conversion price of $0.50 per share. All outstanding amounts due Mr. Gibbs under notes payable were transferred into the credit agreement effective July 18, 2012. On December 31, 2013 we amended the credit agreement to increase the borrowing limit under the line of credit to $1,250,000 and extend the maturity date to December 31, 2014. All other provisions under the agreement remain unchanged. | |
The credit facility also contains customary representations and warranties (including those relating to organization and authorization, compliance with laws, payment of taxes and other obligations, absence of defaults, material agreements and litigation) and customary events of default (including those relating to monetary defaults, covenant defaults, cross defaults and bankruptcy events). | |
Total amounts owed under the credit facility notes payable were $990,000 and $555,000 at December 31, 2013 and 2012, respectively. | |
During the year ended December 31, 2012 our total borrowings under notes payable to Mr. Gibbs was $705,000. On May 10, 2012, we converted $280,000 of demand notes payable and $6,830 of accrued interest payable to Mr. Gibbs into 1,147,324 common shares with a fair value of $344,197, or $0.30 per share, which was the closing price of our common shares on May 9, 2012, and we recognized a $57,366 loss on extinguishment of debt and accounts payable. | |
Borrowings under notes payable to Mr. Gibbs for the year ended December 31, 2013 totaled $435,000. No principal or interest payments were made to Mr. Gibbs during the year ended December 31, 2013. | |
Total accrued interest on the notes payable to Mr. Gibbs were $50,735 and $8,640 at December 31, 2013 and December 31, 2012, respectively, and are included in Due to related parties on the accompanying balance sheets. | |
Interest Expense – Related Parties | |
Total related party interest expense was $43,354 and $11,439 for the years ended December 31, 2013 and 2012, respectively. |
Note_7_Commitments_and_Conting
Note 7 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 7 - Commitments and Contingencies: | ' |
Note 7 - Commitments and Contingencies | |
Under the Langtry Lease we declared our intention to expend a minimum of $2.0 million in permitting and other preproduction costs prior to March 15, 2015. If we fail to make these expenditures we will be deemed to be in breach of the Lease and the lessor will have the option to terminate the Lease by giving us 30 days written notice. The Lease also provides us with the right to terminate the Lease without penalty on March 15th of each year during the lease term by giving the lessor 30 days written notice of termination on or before February 13th of each year. All commitments and obligations under the Lease have been fulfilled to date. |
Note_8_Stockholders_Equity
Note 8 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 8 - Stockholders' Equity: | ' |
Note 8 – Stockholders’ Equity | |
On February 20, 2013, and representing payment in full of the equity consideration in accordance with the terms of the Lease, we issued to the lessor 1,000,000 common shares valued at $340,000, or $0.34 per share, which was the closing bid price of our common stock on February 20, 2013. We capitalized the $340,000 fair value of common shares issued as an increase to mineral rights and properties in our condensed consolidated balance sheets. |
Note_9_Sharebased_Compensation
Note 9 - Share-based Compensation | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Notes | ' | |||||
Note 9 - Share-based Compensation | ' | |||||
Note 9 - Share-based Compensation | ||||||
2004 Equity Incentive Plan | ||||||
Our 2004 Equity Incentive Plan provides officers, directors, selected employees and outside consultants an opportunity to acquire or increase a direct proprietary interest in our operations and future success. Our Board of Directors currently administers the plan and makes all decisions concerning which officers, directors, employees and other persons are granted awards, how many to grant to each recipient, when awards are granted, the terms and conditions applicable to awards, how the plan should be interpreted, whether to amend or terminate the plan and whether to delegate administration of the plan to a committee. A maximum of 500,000 common shares are subject to the plan. The plan provides for the grant of stock options, stock appreciation rights, or shares of stock. Stock options may be non-qualified stock options or incentive stock options except that stock options granted to outside directors, consultants or advisers providing services to us shall in all cases be non-qualified stock options. The plan will terminate on December 10, 2014, unless the administrator terminates the plan earlier. As of December 31, 2013,we had 350,000 common shares available for grant under the plan. | ||||||
Stock Options | ||||||
A summary of our stock option activity for the years ended December 31, 2012 and 2013 is as follows: | ||||||
Shares | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2011 | 200,000 | $0.45 | ||||
Options expired | -50,000 | $0.50 | ||||
Outstanding at December 31, 2012 | 150,000 | $0.43 | ||||
Options granted | 600,000 | $0.26 | ||||
Outstanding at December 31, 2013 | 750,000 | $0.29 | ||||
On April 8, 2013, we granted 200,000 options with a grant date fair value of $0.26 per share to each of our three directors, which were 100% vested on the grant date. These options expire on April 8, 2018, and have an exercise price of $0.26 per share, which was the market price of our common stock on the date of grant. At December 31, 2013, these options have a weighted average remaining contractual life of 4.3 years. | ||||||
The options granted on April 8, 2013 were determined to have a fair value of $154,000, which was charged to expense on the grant date. The following table summarizes the assumptions used to value stock options granted: | ||||||
Fair value assumptions – stock options granted April 8, 2013: | ||||||
Risk free interest rate | 0.70% | |||||
Expected option life - years | 5 | |||||
Expected volatility | 151% | |||||
Expected dividends | 0% | |||||
Stock compensation expenses were $154,000 and $16,012 for the years ended December 31, 2013 and 2012, respectively, and are included in general and administrative expenses in the accompanying consolidated statements of operations. |
Note_10_Income_Taxes
Note 10 - Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Notes | ' | |||||||
Note 10 - Income Taxes | ' | |||||||
Note 10 - Income Taxes | ||||||||
Our net operating loss carry forward as of December 31, 2013 is $5,807,317 which may be used to offset future income taxes through 2025. Our reconciliation between the expected federal income tax benefit computed by applying the federal statutory rate to our net loss and the actual benefit for taxes on net loss for 2013 and 2012 is as follows: | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Expected federal income tax benefit at statutory rate | $ | 69,397 | $ | 210,848 | ||||
State taxes | 7,144 | 21,693 | ||||||
Change in valuation allowance | (76,541) | -232,429 | ||||||
Income tax benefit | $ | — | $ | — | ||||
Our deferred tax assets as of December 31, 2013 and 2012 were as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Net operating loss | $ | 2,177,744 | $ | 2,101,203 | ||||
Valuation allowance | (2,177,744 | ) | (2,101,203 | ) | ||||
Deferred tax assets, net of allowance | $ | — | $ | — | ||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We have provided a valuation allowance of 100% of our net deferred tax asset due to the uncertainty of generating future profits that would allow us to realize our deferred tax assets. |
Note_11_Related_Party_Transact
Note 11 - Related Party Transactions | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Notes | ' | |||||||
Note 11 - Related Party Transactions: | ' | |||||||
Note 11 – Related Party Transactions | ||||||||
The following information is provided in addition to the related party transactions described in Note 6, “Notes Payable – Related Parties,” Note 8, “Stockholders’ Equity,” and Note 9, “Share-based Compensation.” | ||||||||
Conflicts of Interests | ||||||||
Magellan Gold Corporation is a company under common control. Mr. Power is a significant shareholder, director and CEO of both Athena and Magellan. Mr. Gibbs is a significant shareholder in both Athena and Magellan. Athena and Magellan are both exploration stage companies involved in the business of acquisition and exploration of mineral resources. | ||||||||
Silver Saddle Resources, LLC is also a company under common control. Mr. Power and Mr. Gibbs are the owners and managing members of Silver Saddle. Athena and Silver Saddle are both exploration stage companies involved in the business of acquisition and exploration of mineral resources. | ||||||||
The existence of common ownership and common management could result in significantly different operating results or financial position from those that could have resulted had Athena, Magellan and Silver Saddle been autonomous. | ||||||||
Management Fees – Related Parties | ||||||||
On January 1, 2011, we entered into a month-to-month management agreement with Mr. Power requiring a monthly payment, in advance, of $2,500 as consideration for the day-to-day management of Athena. Effective January 1, 2013 the agreement was extended through the end of 2013. During each of the years ended December 31, 2013 and 2012, we incurred $30,000 of management fees to Mr. Power and these costs are included in general and administrative expenses in our consolidated statements of operations. As of December 31, 2013 all management fees due Mr. Power had been paid. On January 1, 2014, we again extended for one year, our month-to-month management agreement with Mr. Power requiring advance monthly payments of $2,500. | ||||||||
Due to Related Parties | ||||||||
At December 31, 2013 and December 31, 2012 due to related parties represented accrued interest payable to Mr. Gibbs in the amounts of $50,735 and $8,640, respectively. | ||||||||
Advances Payable - Related Parties | ||||||||
Non-interest-bearing advances payable to Mr. Power were $-0- and $1,000 at December 31, 2013 and December 31, 2012, respectively. During the year ended December 31, 2013, Mr. Power advanced the Company an additional $5,750 and was repaid the balance of $6,750. | ||||||||
During the year ended December 31, 2012, we borrowed and repaid non-interest-bearing advances from/ to related parties as follows: | ||||||||
Year Ended December 31, 2012 | ||||||||
Related Party | Advances | Repayments | ||||||
Mr. Gibbs | $ | 175,000 | $ | 175,000 | ||||
Mr. Power, including entities controlled by Mr. Power | 26,025 | 25,775 | ||||||
Silver Saddle Resources, LLC | 3,600 | 3,600 | ||||||
$ | 204,625 | $ | 204,375 | |||||
Effective July 18, 2012, we converted $50,000 of advances payable and $160,000 of demand notes payable to Mr. Gibbs into a $210,000 Credit Note under the credit facility. |
Note_12_Subsequent_Events
Note 12: Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 12: Subsequent Events | ' |
Note 12: Subsequent Events | |
The Company has evaluated subsequent events through the date that the financial statements were available to be issued. | |
On February 18 and March 17, 2014 the Company borrowed an additional $15,000 under the credit agreement from Mr. Gibbs, a significant shareholder for a total of $30,000. |
Note_1_Organization_Liquidity_1
Note 1: Organization, Liquidity and Going Concern: Nature of Operations (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Nature of Operations | ' |
Nature of Operations | |
Athena Silver Corporation (“we,” “our,” “us,” or “Athena”) is an exploration stage company engaged in the acquisition and exploration of mineral resources. We were incorporated in Delaware on December 23, 2003, and we became an exploration stage company effective January 1, 2010. We have not presently determined whether our mineral properties contain mineral reserves that are economically recoverable. | |
In December 2009, we formed and organized a new wholly-owned subsidiary, Athena Minerals, Inc. (“Athena Minerals”) to take an assignment of a Sale and Purchase Agreement and Joint Escrow Instructions dated December 4, 2009 (the “Purchase Agreement”). The Purchase Agreement granted us an option to purchase a group of 20 patented mining claims (the “Langtry Property”) totaling approximately 413 acres located in the Calico Mining District at the base of the Calico Mountains northeast of Barstow, California. | |
In March 2010, we entered into a Mining Lease with Option to Purchase which superseded the Purchase Agreement and granted us a 20 year lease to develop and conduct mining operations on the Langtry Property, also with an option to purchase. In February 2012 and December 2013, certain provisions of the Mining Lease were amended, as further discussed below. | |
Going forward, our primary focus will be to continue our evaluation of the Langtry Property including the possible acquisition of additional mineral rights and additional exploration, development and permitting activities. Our mineral lease payments, permitting applications and exploration and development efforts will require additional capital. |
Note_1_Organization_Liquidity_2
Note 1: Organization, Liquidity and Going Concern: Liquidity and Going Concern (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Liquidity and Going Concern | ' |
Liquidity and Going Concern | |
Our consolidated financial statements have been prepared on a going concern basis which assumes that we will be able to meet our obligations and continue our operations during the next fiscal year. Asset realization values may be significantly different from carrying values as shown in our consolidated financial statements and do not give effect to adjustments that would be necessary to the carrying values of assets and liabilities should we be unable to continue as a going concern. | |
At December 31, 2013, we had not yet achieved profitable operations and we have accumulated losses of $6,077,097 since our inception. We expect to incur further losses in the development of our business, all of which casts substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern depends on our ability to generate future profits and/or to obtain the necessary financing to meet our obligations arising from normal business operations when they come due. On December 31, 2013 we amended our credit agreement with Mr. John Gibbs, a related party, to increase the borrowing limit under the line of credit to $1,250,000, which provides the Company an additional $260,000 available under the credit line at December 31, 2013. We anticipate that additional funding will be in the form of additional loans from officers, directors or significant shareholders, or equity financing from the sale of our common stock. Currently, there are no arrangements in place for additional equity funding or new loans. |
Note_2_Summary_of_Significant_1
Note 2: Summary of Significant Accounting Policies: Basis of Presentation and Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Basis of Presentation and Principles of Consolidation | ' |
Basis of Presentation and Principles of Consolidation | |
Our consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiary, Athena Minerals, Inc. All intercompany transactions and balances have been eliminated. Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Note_2_Summary_of_Significant_2
Note 2: Summary of Significant Accounting Policies: Exploration Stage Company (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Exploration Stage Company | ' |
Exploration Stage Company | |
We are an exploration stage company and accordingly, all losses accumulated since inception of the exploration stage have been considered as part of our exploration stage activities. |
Note_2_Summary_of_Significant_3
Note 2: Summary of Significant Accounting Policies: Reclassifications (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications may have been made to our prior year’s consolidated financial statements to conform to our current year presentation. These reclassifications had no effect on our previously reported results of operations or accumulated deficit. |
Note_2_Summary_of_Significant_4
Note 2: Summary of Significant Accounting Policies: Use of Estimates (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of expenses during the periods presented. | |
We make our estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available. | |
We believe that our significant estimates, assumptions and judgments are reasonable, based upon information available at the time they were made. Actual results could differ from these estimates, making it possible that a change in these estimates could occur in the near term. |
Note_2_Summary_of_Significant_5
Note 2: Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
We value our financial assets and liabilities using fair value measurements. Our financial instruments primarily consist of cash and cash equivalents, accounts payable, accrued liabilities, amounts due to related parties and notes payable to related parties. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount of cash and cash equivalents, accounts payable, accrued liabilities, notes payable to related parties and other amounts due to related parties approximates fair value because of the short-term nature of these financial instruments. |
Note_2_Summary_of_Significant_6
Note 2: Summary of Significant Accounting Policies: Concentrations of Credit Risk (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Concentrations of Credit Risk | ' |
Concentrations of Credit Risk | |
Our financial instruments which potentially subject us to credit risk are our cash and cash equivalents. We maintain our cash and cash equivalents at reputable financial institutions and currently, we are not exposed to significant credit risk. |
Note_2_Summary_of_Significant_7
Note 2: Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
We consider all amounts on deposit with financial institutions and highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Note_2_Summary_of_Significant_8
Note 2: Summary of Significant Accounting Policies: Deferred Financing Costs (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Deferred Financing Costs | ' |
Deferred Financing Costs | |
Transaction fees, if any, incurred in connection with our related-party debt are recorded as deferred financing costs in the consolidated balance sheets and amortized to interest expense in the accompanying consolidated statements of operations using the straight-line method, which approximates the effective interest method, over the term of the underlying debt agreement. When a loan is paid in full, any unamortized financing costs are removed from the related accounts and charged to operations. |
Note_2_Summary_of_Significant_9
Note 2: Summary of Significant Accounting Policies: Mineral Rights - Unproven (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Mineral Rights - Unproven | ' |
Mineral Rights - Unproven | |
We have determined that our mining rights meet the definition of mineral rights, as defined by accounting standards, and are tangible assets. As a result, our direct costs to acquire or lease mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated with: leasing or acquiring patented and unpatented mining claims; leasing mining rights including lease signature bonuses, lease rental payments and advance minimum royalty payments; and options to purchase or lease mineral properties. | |
If we establish proven and probable reserves for a mineral property and establish that the mineral property can be economically developed, mineral rights will be amortized over the estimated useful life of the property following the commencement of commercial production or expensed if it is determined that the mineral property has no future economic value or if the property is sold or abandoned. For mineral rights in which proven and probable reserves have not yet been established, we assess the carrying values for impairment at the end of each reporting period and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. | |
The net carrying value of our mineral rights represents the fair value at the time the mineral rights were acquired less accumulated depletion and any impairment losses. Proven and probable reserves have not been established for mineral rights as of December 31, 2013. No impairment loss was recognized during the years ended December 31, 2013 and 2012, and mineral rights are net of $0 of impairment losses as of December 31, 2013. |
Recovered_Sheet1
Note 2: Summary of Significant Accounting Policies: Impairment of Long-lived Assets (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Impairment of Long-lived Assets | ' |
Impairment of Long-lived Assets | |
We continually monitor events and changes in circumstances that could indicate that our carrying amounts of long-lived assets, including mineral rights, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. |
Recovered_Sheet2
Note 2: Summary of Significant Accounting Policies: Notes Payable and Credit Facility- Related Parties (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Notes Payable and Credit Facility- Related Parties | ' |
Notes Payable and Credit Facility– Related Parties | |
Notes payable and the credit facility payable to related parties are classified as current liabilities as the note holders are control persons and have the ability to control the repayment dates of the notes. |
Recovered_Sheet3
Note 2: Summary of Significant Accounting Policies: Exploration Costs (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Exploration Costs | ' |
Exploration Costs | |
Mineral exploration costs are expensed as incurred. When it has been determined that it is economically feasible to extract minerals and the permitting process has been initiated, exploration costs incurred to further delineate and develop the property are considered pre-commercial production costs and will be capitalized and included as mine development costs in our consolidated balance sheets. |
Recovered_Sheet4
Note 2: Summary of Significant Accounting Policies: Share-based Payments (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Share-based Payments | ' |
Share-based Payments | |
We measure and recognize compensation expense or professional services expense for all share-based payment awards made to employees, directors and non-employee consultants based on estimated fair values. We estimate the fair value of stock options on the date of grant using the Black-Scholes-Merton option pricing model, which includes assumptions for expected dividends, expected share price volatility, risk-free interest rate, and expected life of the options. Our expected volatility assumption is based on our historical weekly closing price of our stock over a period equivalent to the expected life of the options. | |
We expense share-based compensation, adjusted for estimated forfeitures, using the straight-line method over the vesting term of the award for our employees and directors and over the expected service term for our non-employee consultants. We estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from our estimates. Our excess tax benefits, if any, cannot be credited to stockholders’ equity until the deduction reduces cash taxes payable; accordingly, we realized no excess tax benefits during any of the periods presented in the accompanying consolidated financial statements. |
Recovered_Sheet5
Note 2: Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Income Taxes | ' |
Income Taxes | |
We account for income taxes through the use of the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and for income tax carry-forwards. A valuation allowance is recorded to the extent that we cannot conclude that realization of deferred tax assets is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. | |
We follow a two-step approach to recognizing and measuring tax benefits associated with uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if, based on the technical merits, it is more likely than not that the tax position will be sustained upon examination by a taxing authority, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement with a taxing authority. We recognize interest and penalties, if any, related to uncertain tax positions in our provision for income taxes in the consolidated statements of operations. To date, we have not recognized any tax benefits from uncertain tax positions. |
Recovered_Sheet6
Note 2: Summary of Significant Accounting Policies: Net Loss Per Common Share (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Net Loss Per Common Share | ' |
Net Loss per Common Share | |
We compute basic net loss per common share by dividing our net loss attributable to common shareholders by our weighted-average number of common shares outstanding during the period. Computation of diluted net loss per common share is similar to our computation of basic net loss per common share except that the numerator is increased to exclude charges which would not have been incurred, and the denominator is increased to include the number of additional common shares that would have been outstanding (using the if-converted and treasury stock methods) if securities containing potentially dilutive common shares (stock options and convertible debt) had been converted to common shares, and if such assumed conversion is dilutive. | |
All potential common shares outstanding have been excluded from diluted net loss per common share because the impact of such inclusion would be anti-dilutive. Our total potential common shares outstanding at December 31, 2013 and 2012, were 893,000 and 293,000, respectively, and were comprised of common stock purchase warrants and shares underlying outstanding stock options. |
Recovered_Sheet7
Note 2: Summary of Significant Accounting Policies: New Accounting Standards (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
New Accounting Standards | ' |
New Accounting Standards | |
From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification are communicated through issuance of an Accounting Standards Update. Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on our consolidated financial statements upon adoption. |
Note_3_Mineral_Rights_and_Prop1
Note 3 - Mineral Rights and Properties: Schedule of Mineral Rights and Properties (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Mineral Rights and Properties | ' | |||||
31-Dec-13 | 31-Dec-12 | |||||
Mineral properties – Section 13 Property | $ | 135,684 | $ | 135,684 | ||
Mineral rights – Langtry Project | 1,553,613 | 994,478 | ||||
Mineral rights and properties | $ | 1,689,297 | $ | 1,130,162 |
Note_4_Fair_Value_of_Financial1
Note 4 - Fair Value of Financial Instruments: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Tables/Schedules | ' | |||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||
Carrying Value at December 31, 2013 | Fair Value Measurement at December 31, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Derivative warrant liability | $ | 17,500 | $ | — | $ | — | $ | 17,500 |
Note_5_Derivative_Warrant_Liab1
Note 5 - Derivative Warrant Liability: Schedule of Change in fair value of derivative warrant liability (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Change in fair value of derivative warrant liability | ' | |||||
Year Ended December 31, 2013 | ||||||
Balance – December 31, 2012 | $ | 51,823 | ||||
Total (gains) or losses (realized/unrealized): | ||||||
Included in net loss | (34,323) | |||||
Balance – December 31, 2013 | $ | 17,500 | ||||
Note_5_Derivative_Warrant_Liab2
Note 5 - Derivative Warrant Liability: Schedule of Assumptions used to value derivative warrants (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Assumptions used to value derivative warrants | ' | |||
Fair value assumptions – derivative warrants: | Year Ended December 31, 2013 | |||
Risk free interest rate | 0.78% | |||
Expected term (years) | 3.1 | |||
Expected volatility | 91% | |||
Expected dividends | 0% |
Note_9_Sharebased_Compensation1
Note 9 - Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||
Shares | Weighted Average Exercise Price | |||
Outstanding at December 31, 2011 | 200,000 | $0.45 | ||
Options expired | -50,000 | $0.50 | ||
Outstanding at December 31, 2012 | 150,000 | $0.43 | ||
Options granted | 600,000 | $0.26 | ||
Outstanding at December 31, 2013 | 750,000 | $0.29 |
Note_9_Sharebased_Compensation2
Note 9 - Share-based Compensation: Schedule of Asumptions used to value stock options granted (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Asumptions used to value stock options granted | ' | |||||
Fair value assumptions – stock options granted April 8, 2013: | ||||||
Risk free interest rate | 0.70% | |||||
Expected option life - years | 5 | |||||
Expected volatility | 151% | |||||
Expected dividends | 0% |
Note_10_Income_Taxes_Schedule_
Note 10 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Tables/Schedules | ' | |||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Expected federal income tax benefit at statutory rate | $ | 69,397 | $ | 210,848 | ||||
State taxes | 7,144 | 21,693 | ||||||
Change in valuation allowance | (76,541) | -232,429 | ||||||
Income tax benefit | $ | — | $ | — |
Note_10_Income_Taxes_Schedule_1
Note 10 - Income Taxes: Schedule of Deferred Tax Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Tables/Schedules | ' | |||||||
Schedule of Deferred Tax Assets | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Net operating loss | $ | 2,177,744 | $ | 2,101,203 | ||||
Valuation allowance | (2,177,744 | ) | (2,101,203 | ) | ||||
Deferred tax assets, net of allowance | $ | — | $ | — |
Note_11_Related_Party_Transact1
Note 11 - Related Party Transactions: Schedule of non-interest bearing advances from and repayments to related parties (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Tables/Schedules | ' | |||||||
Schedule of non-interest bearing advances from and repayments to related parties | ' | |||||||
Year Ended December 31, 2012 | ||||||||
Related Party | Advances | Repayments | ||||||
Mr. Gibbs | $ | 175,000 | $ | 175,000 | ||||
Mr. Power, including entities controlled by Mr. Power | 26,025 | 25,775 | ||||||
Silver Saddle Resources, LLC | 3,600 | 3,600 | ||||||
$ | 204,625 | $ | 204,375 |
Note_1_Organization_Liquidity_3
Note 1: Organization, Liquidity and Going Concern: Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Entity Incorporation, State Country Name | 'Delaware |
Entity Incorporation, Date of Incorporation | 23-Dec-03 |
Note_1_Organization_Liquidity_4
Note 1: Organization, Liquidity and Going Concern: Liquidity and Going Concern (Details) (USD $) | Dec. 31, 2013 |
Details | ' |
Retained Earnings (Accumulated Deficit) | ($6,077,097) |
Recovered_Sheet8
Note 2: Summary of Significant Accounting Policies: Mineral Rights - Unproven (Details) (MineralRights1Member, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
MineralRights1Member | ' | ' |
Indefinite-lived Intangible Assets, Impairment Losses | $0 | $0 |
Recovered_Sheet9
Note 2: Summary of Significant Accounting Policies: Net Loss Per Common Share (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Potential common shares outstanding | 893,000 | 293,000 |
Note_3_Mineral_Rights_and_Prop2
Note 3 - Mineral Rights and Properties: Schedule of Mineral Rights and Properties (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Mineral properties - Section 13 Property | ' | ' |
Property, Plant and Equipment, Gross | $135,684 | $135,684 |
Mineral rights - Langtry Project | ' | ' |
Property, Plant and Equipment, Gross | 1,553,613 | 994,478 |
Mineral rights and properties | ' | ' |
Property, Plant and Equipment, Gross | $1,689,297 | $1,130,162 |
Note_3_Mineral_Rights_and_Prop3
Note 3 - Mineral Rights and Properties: Mineral Properties (Details) (Mineral properties - Section 13 Property, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Mineral properties - Section 13 Property | ' |
Significant Acquisitions and Disposals, Description | 'In May 2012, we purchased 661 acres of land (“Section 13 Property”) in fee simple |
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | $135,684 |
Note_3_Mineral_Rights_and_Prop4
Note 3 - Mineral Rights and Properties: Mineral Rights (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Common stock issued for mineral rights, Value | $340,000 | $342,261 | $168,902 | $73,400 |
Mineral rights - Langtry Project | ' | ' | ' | ' |
Significant Acquisitions and Disposals, Description | 'In March 2010, we entered into a 20 year Mining Lease with Option to Purchase (the “Langtry Lease” or the “Lease”) granting us the exclusive right to explore, develop and conduct mining operations on a group of 20 patented mining claims | ' | ' | ' |
Shares, Issued | 53,846 | ' | ' | ' |
Common stock issued for mineral rights, Value | 12,385 | ' | ' | ' |
Share Price | $0.23 | ' | ' | ' |
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | 12,385 | ' | ' | ' |
Mineral rights and properties | ' | ' | ' | ' |
Operating Leases, Rent Expense | $559,135 | ' | ' | ' |
Note_4_Fair_Value_of_Financial2
Note 4 - Fair Value of Financial Instruments: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $) | Dec. 31, 2013 |
Derivative warrant liability | $17,500 |
Fair Value, Inputs, Level 3 | ' |
Derivative warrant liability | $17,500 |
Note_5_Derivative_Warrant_Liab3
Note 5 - Derivative Warrant Liability: Schedule of Change in fair value of derivative warrant liability (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Derivative Warrant Liability, Fair Value, Starting Balance | $51,823 |
Derivative Warrant Liability, Fair Value, Total (gains) or losses (realized/unrealized) included in net income (loss) | -34,323 |
Derivative Warrant Liability, Fair Value, Starting Balance | $17,500 |
Note_5_Derivative_Warrant_Liab4
Note 5 - Derivative Warrant Liability: Schedule of Assumptions used to value derivative warrants (Details) (Derivative Warrants) | 12 Months Ended |
Dec. 31, 2013 | |
Derivative Warrants | ' |
Fair Value Assumptions, Risk Free Interest Rate | 0.78% |
Fair Value Assumptions, Expected Term | '3 years 1 month 6 days |
Fair Value Assumptions, Expected Volatility Rate | 91.00% |
Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Note_6_Convertible_Notes_Payab1
Note 6 - Convertible Notes Payable - Related Parties: Line of Credit Agreement (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Line of Credit Facility, Covenant Terms | 'The credit facility also contains customary representations and warranties (including those relating to organization and authorization, compliance with laws, payment of taxes and other obligations, absence of defaults, material agreements and litigation) and customary events of default (including those relating to monetary defaults, covenant defaults, cross defaults and bankruptcy events) | ' |
John D. Gibbs, a significant shareholder | July182012Member | ' | ' |
Line of Credit Facility, Initiation Date | 18-Jul-12 | ' |
Line of Credit Facility, Borrowing Capacity, Description | 'maximum amount of $1,000,000 | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $1,000,000 | ' |
Line of Credit Facility, Interest Rate During Period | 5.00% | ' |
Line of Credit Facility, Expiration Date | 31-Jul-14 | ' |
Line of Credit Facility, Description | 'convertible, at the option of the lender, into common shares at a conversion price of $0.50 per share | ' |
Line of Credit Facility, Amount Outstanding | $990,000 | $555,000 |
Note_6_Convertible_Notes_Payab2
Note 6 - Convertible Notes Payable - Related Parties (Details) (USD $) | 12 Months Ended | 48 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Loss on extinguishment of debt - related parties | ' | ($57,366) | ($237,366) |
Borrowings from notes payable - related parties | 435,000 | 705,000 | 1,300,000 |
John D. Gibbs, a significant shareholder | ' | ' | ' |
Borrowings from notes payable - related parties | 435,000 | ' | ' |
Repayments of Debt | 0 | ' | ' |
John D. Gibbs, a significant shareholder | May102012Member | ' | ' | ' |
Loss on extinguishment of debt - related parties | -57,366 | ' | ' |
John D. Gibbs, a significant shareholder | May102012Member | Notes Payable, Other Payables | ' | ' | ' |
Extinguishment of Debt, Amount | 280,000 | ' | ' |
John D. Gibbs, a significant shareholder | May102012Member | AccruedInterestPayableMember | ' | ' | ' |
Extinguishment of Debt, Amount | $6,830 | ' | ' |
Note_6_Convertible_Notes_Payab3
Note 6 - Convertible Notes Payable - Related Parties: Interest Expense - Related Parties (Details) (Related Parties, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Related Parties | ' | ' |
Interest Expense | $43,354 | $11,439 |
Note_7_Commitments_and_Conting1
Note 7 - Commitments and Contingencies (Details) (Mineral rights - Langtry Project, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Mineral rights - Langtry Project | ' |
Long-term Purchase Commitment, Description | 'we declared our intention to expend a minimum of $2.0 million in permitting and other preproduction costs prior to March 15, 2015 |
Long-term Purchase Commitment, Amount | $2 |
Note_8_Stockholders_Equity_Det
Note 8 - Stockholders' Equity (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | |
15-Mar-12 | ||||
Common stock issued for cash, net, Shares | ' | ' | ' | 1,000,000 |
Common stock issued for cash, net, Value | $60,000 | $571,206 | $475,000 | $340,000 |
Share Price | ' | ' | ' | $0.34 |
Note_9_Sharebased_Compensation3
Note 9 - Share-based Compensation: 2004 Equity Incentive Plan (Details) (2004 Equity Incentive Plan) | 12 Months Ended |
Dec. 31, 2013 | |
2004 Equity Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Description | 'provides officers, directors, selected employees and outside consultants an opportunity to acquire or increase a direct proprietary interest in our operations and future success |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 'Our Board of Directors currently administers the plan and makes all decisions concerning which officers, directors, employees and other persons are granted awards, how many to grant to each recipient, when awards are granted, the terms and conditions applicable to awards, how the plan should be interpreted, whether to amend or terminate the plan and whether to delegate administration of the plan to a committee |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 350,000 |
Note_9_Sharebased_Compensation4
Note 9 - Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Details | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | ' | 750,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | ' | $0.29 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | -50,000 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $0.50 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 150,000 | 750,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $0.43 | $0.29 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 600,000 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $0.26 | ' |
Note_9_Sharebased_Compensation5
Note 9 - Share-based Compensation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Allocated Share-based Compensation Expense | $154,000 | $16,012 |
14-Jul-11 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 200,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $0.26 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $0.26 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | '4 years 3 months 18 days | ' |
Options Granted, Fair Value | $154,000 | ' |
Note_9_Sharebased_Compensation6
Note 9 - Share-based Compensation: Schedule of Asumptions used to value stock options granted (Details) (Stock Options) | 12 Months Ended |
Dec. 31, 2013 | |
Stock Options | ' |
Fair Value Assumptions, Risk Free Interest Rate | 0.70% |
Fair Value Assumptions, Expected Term | '5 years |
Fair Value Assumptions, Expected Volatility Rate | 151.00% |
Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Note_10_Income_Taxes_Details
Note 10 - Income Taxes (Details) (USD $) | Dec. 31, 2013 |
Details | ' |
Operating Loss Carryforwards | $5,807,317 |
Note_10_Income_Taxes_Schedule_2
Note 10 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $69,397 | $210,848 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 7,144 | 21,693 |
Valuation Allowance, Deferred Tax Asset, Change in Amount | ($76,541) | ($232,429) |
Note_10_Income_Taxes_Schedule_3
Note 10 - Income Taxes: Schedule of Deferred Tax Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Deferred Tax Assets, Net Opeating (Income) Loss | $2,177,744 | $2,101,203 |
Deferred Tax Assets, Valuation Allowance | ($2,177,744) | ($2,101,203) |
Note_11_Related_Party_Transact2
Note 11 - Related Party Transactions: Management Fees - Related Parties (Details) (Mr. Power, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Mr. Power | ' | ' |
Management Fee, Amount Paid | $30,000 | $30,000 |
Note_11_Related_Party_Transact3
Note 11 - Related Party Transactions: Schedule of non-interest bearing advances from and repayments to related parties (Details) (During2012Member, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Mr. Gibbs | ' |
Advances from Related Parties | $175,000 |
Repayments of Advances to Related Parties | 175,000 |
Mr. Power, including entities controlled by Mr. Power | ' |
Advances from Related Parties | 26,025 |
Repayments of Advances to Related Parties | 25,775 |
Silver Saddle Resources, LLC | ' |
Advances from Related Parties | 3,600 |
Repayments of Advances to Related Parties | 3,600 |
Related Parties | ' |
Advances from Related Parties | 204,625 |
Repayments of Advances to Related Parties | $204,375 |
Note_12_Subsequent_Events_Deta
Note 12: Subsequent Events (Details) (John D. Gibbs, a significant shareholder, USD $) | 0 Months Ended | 3 Months Ended | |
Mar. 17, 2014 | Feb. 18, 2014 | Mar. 31, 2014 | |
John D. Gibbs, a significant shareholder | ' | ' | ' |
Proceeds from Lines of Credit | $15,000 | $15,000 | $30,000 |