Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 19-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Entity Registrant Name | 'Tara Minerals Corp. | ' |
Entity Central Index Key | '0001387054 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 81,082,278 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash | $82,055 | $76,758 |
Other receivables, net | 120,766 | 73,106 |
Prepaid assets | 100,146 | 114,425 |
Assets held for disposal, net | 29,262 | 29,262 |
Other current asset | 21,653 | 21,684 |
Total current assets | 353,882 | 315,235 |
Property, plant, equipment, mine development and land, net | 7,068,015 | 7,344,419 |
Total assets | 7,421,897 | 7,659,654 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 1,689,095 | 1,410,281 |
Notes payable, current portion | 118,784 | 38,614 |
Convertible notes payable, net | 205,108 | 75,652 |
Due to related parties, net of due from | 1,467,583 | 1,517,615 |
Total current liabilities | 3,480,570 | 3,042,162 |
Notes payable, non-current portion | 23,739 | 28,005 |
Total liabilities | 3,504,309 | 3,070,167 |
Stockholders' equity: | ' | ' |
Common stock: $0.001 par value; authorized 200,000,000 shares; issued and outstanding 81,082,278 shares | 81,082 | 81,082 |
Additional paid-in capital | 37,286,709 | 37,191,859 |
Common stock payable | 47,466 | 47,466 |
Accumulated deficit during exploration stage | -36,515,483 | -35,757,123 |
Accumulated other comprehensive loss | -171,310 | -167,584 |
Total Tara Minerals stockholders' equity | 728,464 | 1,395,700 |
Non-controlling interest | 3,189,124 | 3,193,787 |
Total stockholders' equity | 3,917,588 | 4,589,487 |
Total liabilities and stockholders' equity | $7,421,897 | $7,659,654 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 81,082,278 | 81,082,278 |
Common stock, shares outstanding | 81,082,278 | 81,082,278 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 95 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS [Abstract] | ' | ' | ' |
Mining revenues | $105,316 | ' | $265,737 |
Cost of revenue | ' | ' | 658,007 |
Gross margin | 105,316 | ' | -392,270 |
Exploration expenses | 163,393 | 241,563 | 8,711,664 |
Operating, general, and administrative expenses | 553,259 | 790,591 | 32,223,707 |
Net operating loss | -611,336 | -1,032,154 | -41,327,641 |
Non-operating income (loss): | ' | ' | ' |
Interest income | 12,454 | 12,652 | 257,872 |
Interest expense | -126,344 | -202,015 | -2,464,715 |
Gain (loss) on debt due to extinguishment and conversion | 5,000 | ' | -778,952 |
Loss on disposal or sale of assets | -54,558 | ' | -86,088 |
Gain on dissolution of joint venture | ' | ' | 100,000 |
Settlement loss, net | ' | -861,996 | -1,814,996 |
Gain on bargain acquisition of ACM | ' | ' | 3,489,971 |
Impairment of long lived assets | ' | ' | -28,001 |
Other income | 11,761 | 144 | 1,539,188 |
Total non-operating income (loss) | -151,687 | -1,051,215 | 214,279 |
Loss before income taxes | -763,023 | -2,083,369 | -41,113,362 |
Income tax benefit | ' | ' | 959,000 |
Loss from continuing operations | -763,023 | -2,083,369 | -40,154,362 |
Discontinued operations: | ' | ' | ' |
Gain from discontinued operations, net of tax | ' | ' | 3,618,402 |
Net loss | -763,023 | -2,083,369 | -36,535,960 |
Net loss attributable to non-controlling interest | 4,663 | 870 | 20,477 |
Net loss attributable to Tara Minerals' shareholders | -758,360 | -2,082,499 | -36,515,483 |
Other comprehensive loss: | ' | ' | ' |
Foreign currency translation loss | -3,726 | -51,311 | -171,310 |
Total comprehensive loss | ($762,086) | ($2,133,810) | ($36,686,793) |
Net loss per share, basic and diluted | ($0.01) | ($0.03) | ' |
Weighted average number of shares, basic and diluted | 81,082,278 | 69,090,834 | ' |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | 95 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |
Cash flows from operating activities: | ' | ' | ' |
Net loss attributable to Tara Minerals' shareholders | ($758,360) | ($2,082,499) | ($36,515,483) |
Adjustments to reconcile net loss to net cash: | ' | ' | ' |
Depreciation and amortization | 73,557 | 72,912 | 1,246,607 |
Allowance for doubtful accounts | 2,517 | 118,235 | 2,747,237 |
Stock based compensation and stock bonuses | ' | ' | 9,199,375 |
Common stock issued for services and other expenses | ' | 18,000 | 6,173,500 |
Settlement loss, net | ' | 861,996 | 314,996 |
Non-controlling interest in net (loss) income of consolidated subsidiaries | -4,663 | -870 | -20,487 |
Non-controlling interest - stock issued to third parties of subsidiaries | ' | ' | 671,028 |
Accretion of beneficial conversion feature and debt discount | 114,306 | 200,000 | 2,343,533 |
Exploration expenses paid with parent and subsidiary common stock | ' | ' | 4,146,365 |
Loss on debt due to extinguishment and conversion | -5,000 | ' | 778,952 |
Accrued interest converted to common stock | ' | ' | 84,438 |
Deferred tax asset, net | ' | ' | -959,000 |
Gain from discontinued operations, net of tax | ' | ' | -3,618,402 |
Gain on dissolution of joint venture | ' | ' | -100,000 |
Gain on bargain purchase of ACM | ' | ' | -3,489,971 |
Other | 54,558 | ' | 175,431 |
Changes in current operating assets and liabilities: | ' | ' | ' |
Other receivables, net | 1,948 | -110,573 | -1,700,687 |
Prepaid expenses | 14,279 | 354 | -152,266 |
Other assets | 31 | -1,255 | -90,613 |
Accounts payable and accrued expenses | 459,977 | 133,460 | 1,939,557 |
Net cash used in operating activities | -46,850 | -790,240 | -16,825,890 |
Cash flows from investing activities: | ' | ' | ' |
Acquisition of property, plant, equipment, land and construction in progress | ' | -221,386 | -3,424,246 |
Purchase of mining concession including mining deposits | ' | ' | -1,719,907 |
Proceeds from the sale or disposal of assets | ' | ' | 29,128 |
Proceeds from the sale of ACM | ' | ' | 7,500,000 |
Investment in ACM | ' | ' | -224,521 |
Other | ' | ' | -1,721 |
Net cash (used in) provided by investing activities | ' | -221,386 | 2,158,733 |
Cash flows from financing activities: | ' | ' | ' |
Cash from the sale of common stock | ' | 700,000 | 12,124,588 |
Proceeds from notes payable, related party | ' | ' | 150,000 |
Proceeds from notes payable | 110,000 | ' | 1,540,000 |
Payments towards notes payable | -4,095 | -11,013 | -2,087,256 |
Payments towards notes payable, related party | ' | ' | -100,000 |
Payment towards equipment financing | ' | ' | -201,438 |
Change in due to/from related parties, net | -50,032 | -82,486 | 1,025,983 |
Payments from joint venture partners | ' | ' | 100,000 |
Non-controlling interest - cash from sale of sale of common stock of subsidiaries | ' | ' | 2,368,645 |
Net cash provided by financing activities | 55,873 | 606,501 | 14,920,522 |
Effect of exchange rate changes on cash | -3,726 | -51,311 | -171,310 |
Net (decrease) increase in cash | 5,297 | -456,436 | 82,055 |
Beginning of period cash balance | 76,758 | 906,663 | ' |
End of period cash balance | 82,055 | 450,227 | 82,055 |
Supplemental Information: | ' | ' | ' |
Interest paid | 663 | 2,011 | 308,104 |
Income taxes paid | ' | ' | 10,565 |
Non-cash Investing and Financing Transactions: | ' | ' | ' |
Purchase of mining concession paid by debt to related party plus capitalized interest | ' | ' | 1,445,448 |
Purchase of concession paid with notes payable or mining deposits plus capitalized interest | ' | ' | 3,400,837 |
Recoverable value-added taxes incurred through additional debt and due to related party, net of mining concession modification | ' | ' | 2,101,293 |
Beneficial conversion value for convertible debt and financial instruments | 94,850 | ' | 2,109,850 |
Conversion of debt and Iron Ore Financial instrument to common stock, plus accrued interest | ' | 800,000 | 3,109,438 |
Purchase of property and equipment through debt and common stock | ' | ' | 1,327,089 |
Issuance of common stock payable for services | ' | 50,400 | 50,400 |
Other | ' | ' | $319,480 |
Nature_of_Business_and_Signifi
Nature of Business and Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Nature of Business and Significant Accounting Policies [Abstract] | ' | ||||||||
Nature of Business and Significant Accounting Policies | ' | ||||||||
Note 1. | Nature of Business and Significant Accounting Policies | ||||||||
Nature of business and principles of consolidation: | |||||||||
The accompanying Condensed Consolidated Financial Statements of Tara Minerals Corp. (the "Company") should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2013. Significant accounting policies disclosed therein have not changed, except as noted below. | |||||||||
Tara Minerals owns 99.9% of the common stock of American Metal Mining S.A. de C.V. ("AMM"), a Mexican corporation, and owns 87% of the common stock of Adit Resources Corp. ("Adit"). Adit in turns owns 99.99% of American Copper Mining, S.A. de C.V. ("ACM"). All of Tara Minerals' operations in Mexico are conducted through AMM and ACM since Mexican law provides that only Mexican corporations are allowed to own mining properties. AMM's primary focus is on industrial minerals, e.g. copper, zinc. Adit, through ACM, focuses on gold mining concessions. | |||||||||
The Company is a mining company in the exploration stage and presents inception to date information, in accordance with the Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") Development Stage Entities Topic. | |||||||||
In these financial statements, references to "Company," "we," "our," and/or "us," refer to Tara Minerals Corp. and, unless the context indicates otherwise, its consolidated subsidiaries. | |||||||||
Tara Minerals is a subsidiary of Tara Gold Resources Corp. ("Tara Gold" or "the Company's Parent"). | |||||||||
The accompanying condensed consolidated financial statements and the related footnote information are unaudited. In the opinion of management, they include all normal recurring adjustments necessary for a fair presentation of the condensed consolidated balance sheets of the Company as of March 31, 2014 and December 31, 2013, the condensed consolidated results of its operations for the three months ended March 31, 2014 and 2013 and the condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2013. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. | |||||||||
The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All amounts are in U.S. dollars unless otherwise indicated. All significant inter-company balances and transactions have been eliminated in consolidation. | |||||||||
The reporting currency of the Company and Adit is the U.S. dollar. The functional currency of AMM and ACM is the Mexican Peso. As a result, the financial statements of these subsidiaries have been re-measured from Mexican pesos into U.S. dollars using (i) current exchange rates for monetary asset and liability accounts, (ii) historical exchange rates for non-monetary asset and liability accounts, (iii) historical exchange rates for revenues and expenses associated with non-monetary assets and liabilities, and (iv) the weighted average exchange rate of the reporting period for all other revenues and expenses. In addition, foreign currency transaction gains and losses resulting from U.S. dollar denominated transactions are eliminated. The resulting re-measurement gain (loss) is recorded to other comprehensive gain (loss). | |||||||||
Current and historical exchange rates are not indicative of what future exchange rates will be and should not be construed as such. | |||||||||
Relevant exchange rates used in the preparation of the financial statements for AMM and ACM are as follows for the three months ended March 31, 2014 and 2013. Mexican pesos per one U.S. dollar: | |||||||||
31-Mar-14 | |||||||||
Current exchange rate | Ps. | 13.0841 | |||||||
Weighted average exchange rate for the three months ended | Ps. | 13.2339 | |||||||
31-Mar-13 | |||||||||
Current exchange rate | Ps. | 12.3546 | |||||||
Weighted average exchange rate for the three months ended | Ps. | 12.6468 | |||||||
The Company's significant accounting policies are: | |||||||||
Reclassifications | |||||||||
Certain reclassifications, which have no effect on net loss, have been made in the prior period financial statements to conform to the current year presentation. | |||||||||
Estimates | |||||||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management routinely makes judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. | |||||||||
Recoverable Value-Added Taxes (IVA) and Allowance for Doubtful Accounts | |||||||||
Impuesto al Valor Agregado taxes (IVA) are recoverable value-added taxes charged by the Mexican government on goods sold and services rendered at a rate of 16%. Under certain circumstances, these taxes are recoverable by filing a tax return and as determined by the Mexican taxing authority. Our allowance in association with our receivable from IVA from our Mexico subsidiary is based on our determination that the Mexican government may not allow the complete refund of these taxes. | |||||||||
Each period, receivables are reviewed for collectability. When a receivable has doubtful collectability we allow for the receivable until we are either assured of collection (and reverse the allowance) or assured that a write-off is necessary. | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(Unaudited) | |||||||||
Allowance - recoverable value-added taxes | $ | 1,599,620 | $ | 1,597,407 | |||||
Allowance - other receivables | 348,737 | 348,433 | |||||||
Total | $ | 1,948,357 | $ | 1,945,840 | |||||
Bad debt expense was $2,517 and $118,235 at March 31, 2014 and 2013, respectively. | |||||||||
AMM received refunds of $40,489 for IVA taxes during January and February 2014. | |||||||||
Reclamation and remediation costs (asset retirement obligations) | |||||||||
Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and abandonment costs. | |||||||||
Future remediation costs for reprocessing plant and buildings are accrued based on management's best estimate, at the end of each period, of the undiscounted costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing remediation, maintenance and monitoring costs. Changes in estimates are reflected in earnings in the period an estimate is revised. There were no reclamation and remediation costs incurred or accrued as of March 31, 2014 and 2013. | |||||||||
Income taxes | |||||||||
Income taxes are provided for using the asset and liability method of accounting in accordance with the Income Taxes Topic of the FASB ASC. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized by management. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The computation of limitations relating to the amount of such tax assets, and the determination of appropriate valuation allowances relating to the realization of such assets, are inherently complex and require the exercise of judgment. As additional information becomes available, management continually assesses the carrying value of our net deferred tax assets. | |||||||||
Fair Value Accounting | |||||||||
As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||||||
The three levels of the fair value hierarchy are described below: | |||||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||||||||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; | ||||||||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||||||||
Recently Adopted and Recently Issued Accounting Guidance | |||||||||
Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC, did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows. |
Property_plant_equipment_mine_
Property, plant, equipment, mine development and land, net | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Property, plant, equipment, mine development and land, net [Abstract] | ' | ||||||||||||
Property, plant, equipment, mine development and land, net | ' | ||||||||||||
Note 2. | Property, plant, equipment, mine development and land, net | ||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
(Unaudited) | |||||||||||||
Land | $ | 19,590 | $ | 19,590 | |||||||||
Mining concessions: | |||||||||||||
Pilar (a) | 710,172 | 710,172 | |||||||||||
Don Roman (See Note 4) | 521,739 | 521,739 | |||||||||||
Las Nuvias | 100,000 | 100,000 | |||||||||||
Centenario | 635,571 | 635,571 | |||||||||||
La Palma | 80,000 | 80,000 | |||||||||||
La Verde | 60,000 | 60,000 | |||||||||||
Dixie Mining District | 650,000 | 650,000 | |||||||||||
Picacho Groupings | 1,571,093 | 1,571,093 | |||||||||||
Mining concessions | 4,328,575 | 4,328,575 | |||||||||||
Property, plant and equipment | 3,897,097 | 4,142,245 | |||||||||||
8,245,262 | 8,490,410 | ||||||||||||
Less - accumulated depreciation | (1,177,247 | ) | (1,145,991 | ) | |||||||||
$ | 7,068,015 | $ | 7,344,419 | ||||||||||
Pilar, Don Roman, Las Nuvias, Centenario, La Palma and La Verde properties are located in Mexico and are known as the Don Roman Groupings. | |||||||||||||
The Picacho and Picacho Fractions are located in Mexico and are known as the Picacho Groupings. | |||||||||||||
a. | In January 2007, the Company acquired the Pilar de Mocoribo Prospect ("Pilar") from Tara Gold for $739,130 plus $115,737 of value-added tax (as amended). The Company owes $535,659 for this mining concession (including the applicable value-added tax). | ||||||||||||
In accordance with the Interest Topic of FASB ASC, the future payments of the total payment amount of $739,130 have been discounted using the incremental borrowing rate of 5.01%. As of March 31, 2014, the present value of future payments is as follows: | |||||||||||||
Debt | IVA | Total | |||||||||||
Total remaining debt | $ | 486,739 | $ | 77,878 | $ | 564,617 | |||||||
Imputed interest | (28,958 | ) | - | (28,958 | ) | ||||||||
Present value of debt | $ | 457,781 | $ | 77,878 | $ | 535,659 |
Notes_Payable_and_Convertible_
Notes Payable and Convertible Notes Payable, net | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Notes Payable and Convertible Notes Payable, net [Abstract] | ' | ||||||||||||||||||||||||
Notes Payable and Convertible Notes Payable, net | ' | ||||||||||||||||||||||||
Note 3. | Notes Payable and Convertible Notes Payable, net | ||||||||||||||||||||||||
The following table represents the outstanding balance of notes payable. | |||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Auto loans | $ | 62,523 | $ | 66,619 | |||||||||||||||||||||
Notes payable | 80,000 | - | |||||||||||||||||||||||
Convertible notes payable, net | 205,108 | 75,652 | |||||||||||||||||||||||
347,631 | 142,271 | ||||||||||||||||||||||||
Less - current portion | (118,784 | ) | (38,614 | ) | |||||||||||||||||||||
Less - current portion convertible notes payable, net | (205,108 | ) | (75,652 | ) | |||||||||||||||||||||
Total - non-current portion | $ | 23,739 | $ | 28,005 | |||||||||||||||||||||
During the three months ended March 31, 2014 the Company converted balances with two vendors to notes payable in the amount of $80,000 and recognized a gain on debt extinguishment in the amount of $5,000, notes are due to in May 2014. | |||||||||||||||||||||||||
During the year ended December 31, 2013 the Company raised $150,000 through the sale of a convertible note. The note payable was due in February 2014 and extended until July 2014; bears interest of 16% per year and can be converted to the Company's stock at $0.10 per share. The beneficial conversion feature of the note payable was determined to be $120,000 of which $120,000 was amortized as of March 31, 2014. Interest expense related to the convertible note was $8,000 as of March 31, 2014. | |||||||||||||||||||||||||
During the three months ended March 31, 2014 the Company raised $60,000 through the sale of a convertible note. The note payable due in May 2014 and extended until July 2014; can be converted to the Company's stock at $0.10 per share. The beneficial conversion feature of the note payable was determined to be $60,000 of which $39,101 was amortized as of March 31, 2014. Interest expense related to the convertible note was $2,000 as of March 31, 2014. | |||||||||||||||||||||||||
During the three months ended March 31, 2014 the Company raised $50,000 through the sale of a convertible note. The note payable is due in July 2014 and can be converted to the Company's stock at $0.10 per share. The beneficial conversion feature of the note payable was determined to be $34,850 of which $857 was amortized as of March 31, 2014. | |||||||||||||||||||||||||
The five year maturity schedule for notes payable and convertible notes payable, net is presented below: | |||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Total | ||||||||||||||||||||
Auto loans | $ | 38,784 | $ | 9,501 | $ | 5,948 | $ | 6,178 | $ | 2,112 | $ | 62,523 | |||||||||||||
Note payables | 80,000 | - | - | - | - | 80,000 | |||||||||||||||||||
Convertible note payable, net | 205,108 | - | - | - | - | 205,108 | |||||||||||||||||||
Total | $ | 323,892 | $ | 9,501 | $ | 5,948 | $ | 6,178 | $ | 2,112 | $ | 347,631 |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related Party Transactions | ' | ||||||||
Note 4. | Related Party Transactions | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(Unaudited) | |||||||||
Due from related parties | $ | 119,920 | $ | 221,592 | |||||
Due to related parties | (1,587,503 | ) | (1,739,207 | ) | |||||
$ | (1,467,583 | ) | $ | (1,517,615 | ) | ||||
All transactions with related parties have occurred in the normal course of operations. Mexico based related party transactions are measured at the appropriate foreign exchange amount. | |||||||||
In January 2007, Corporacion Amermin S.A. de C.V. ("Amermin"), a subsidiary of Tara Gold, made the arrangements to purchase Pilar, Don Roman and Las Nuvias properties listed in Note 2 (part of the Don Roman Groupings) and sold the concessions to AMM. At March 31, 2014, Amermin has paid the original note holder in full and AMM owes Amermin $535,659 for the Pilar mining concession and $211,826 for the Don Roman mining concession. | |||||||||
As of March 31, 2014, Amermin had loaned AMM $1,017,439 at 0% interest, due on demand. | |||||||||
As of March 31, 2014, Tara Gold owed the Company a total of $177,419 at 0% interest, due on demand. | |||||||||
The following are intercompany transactions that eliminate during the consolidation of these financial statements: | |||||||||
During 2012, Tara Minerals issued Adit six promissory notes for $4,286,663. During 2013, Tara Minerals issued Adit one promissory note for $610,000. These notes are unsecured, bear interest at U.S. prime rate plus 3.25% per year and are due and payable between May 2014 and January 2015. As of March 31, 2014, Tara Minerals owed Adit $5,413,414 in interest and principal. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |
Mar. 31, 2014 | ||
Stockholders' Equity [Abstract] | ' | |
Stockholders' Equity | ' | |
Note 5. | Stockholders' Equity | |
The Company had no issuances of common stock during the three months ended March 31, 2014. |
Options
Options | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Options [Abstract] | ' | ||||||||||||||||
Options | ' | ||||||||||||||||
Note 6. | Options | ||||||||||||||||
Tara Minerals has the following incentive plans which are registered under a Form S-8: | |||||||||||||||||
· Incentive Stock Option Plan | |||||||||||||||||
· Nonqualified Stock Option Plan | |||||||||||||||||
· Stock Bonus Plan | |||||||||||||||||
There have been no issuances under the Company's plans in 2014. | |||||||||||||||||
On October 28, 2009, Adit adopted the following incentive plans which have not been registered: | |||||||||||||||||
· Incentive Stock Option Plan | |||||||||||||||||
· Nonqualified Stock Option Plan | |||||||||||||||||
· Stock Bonus Plan | |||||||||||||||||
There have been no issuances under the Adit plans in 2014. | |||||||||||||||||
The fair value of each award discussed above is estimated on the date of grant using the Black-Scholes valuation model that uses the assumptions noted in the following table. Expected volatilities are based on volatilities from the Company's traded common stock. The expected term of the award granted is usually estimated at half of the contractual term as noted in the individual agreements, unless the life is one year or less based upon management's assessment of known factors, and represents the period of time that management anticipates awards granted to be outstanding. The risk-free rate for the periods within the contractual life of the option is based on the U.S. Treasury bond rate in effect at the time of the grant for bonds with maturity dates at the estimated term of the options. Historically the Company has had no forfeitures of options or warrants, therefore, the Company uses a zero forfeiture rate. | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
Expected volatility | 0.00% | 218.84% | |||||||||||||||
Weighted-average volatility | 0.00% | 218.84% | |||||||||||||||
Expected dividends | 0 | 0 | |||||||||||||||
Expected term (in years) | 0 | 2 | |||||||||||||||
Risk-free rate | 0.00% | 0.22% | |||||||||||||||
A summary of option activity under the plans as of March 31, 2014 and changes during the period then ended is presented below: | |||||||||||||||||
Options | Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||||||||
Exercise Price | Remaining | Intrinsic | |||||||||||||||
Contractual Term | Value | ||||||||||||||||
Outstanding at December 31, 2013 | 2,750,000 | $ | 0.24 | ||||||||||||||
Granted | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Forfeited, expired or cancelled | - | - | |||||||||||||||
Outstanding at March 31, 2014 | 2,750,000 | $ | 0.24 | 1.5 | $ | 167,440 | |||||||||||
Exercisable at March 31, 2014 | 2,340,000 | $ | 0.24 | 1.5 | $ | 167,440 | |||||||||||
Non-vested Options | Options | Weighted-Average | |||||||||||||||
Grant-Date Fair Value | |||||||||||||||||
Non-vested at December 31, 2013 | 410,000 | $ | 0.48 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | - | - | |||||||||||||||
Forfeited, expired or cancelled | - | - | |||||||||||||||
Non-vested at March 31, 2014 | 410,000 | $ | 0.48 |
Noncontrolling_Interest
Non-controlling Interest | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Non-controlling Interest [Abstract] | ' | ||||||||
Non-controlling Interest | ' | ||||||||
Note 7. | Non-controlling Interest | ||||||||
All non-controlling interest of the Company is a result of the Company's subsidiaries stock movement and results of operations. Cumulative results of these activities results in: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(Unaudited) | |||||||||
Common stock for cash | $ | 1,999,501 | $ | 1,999,501 | |||||
Common stock for services | 95,215 | 95,215 | |||||||
Exploration expenses paid for in subsidiary common stock | 240,000 | 240,000 | |||||||
Stock based compensation | 1,374,880 | 1,374,880 | |||||||
Cumulative net loss attributable to non-controlling interest | (20,478 | ) | (15,815 | ) | |||||
Treasury stock | (500,000 | ) | (500,000 | ) | |||||
Other | 6 | 6 | |||||||
Total non-controlling interest | $ | 3,189,124 | $ | 3,193,787 | |||||
A summary of activity as of March 31, 2014 and changes during the period then ended is presented below: | |||||||||
Non-controlling interest at December 31, 2013 | $ | 3,193,787 | |||||||
Net income attributable to non-controlling interest | (4,663 | ) | |||||||
Non-controlling interest at March 31, 2014 | $ | 3,189,124 |
Fair_Value
Fair Value | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value [Abstract] | ' | ||||||||||||||||
Fair Value | ' | ||||||||||||||||
Note 8. | Fair Value | ||||||||||||||||
In accordance with authoritative guidance, the table below sets forth the Company's financial assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
Fair Value at March 31, 2014 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
None | $ | - | $ | - | $ | - | $ | - | |||||||||
Liabilities: | |||||||||||||||||
Beneficial conversion feature of note payable (See Note 3) | $ | 54,892 | $ | 54,892 | $ | - | $ | - | |||||||||
Fair Value at December 31, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
Fair market value of ACM's net identifiable assets acquired | $ | 1,589,000 | $ | - | $ | - | $ | 1,589,000 | |||||||||
Liabilities: | |||||||||||||||||
Beneficial conversion feature of note payable (See Note 3) | $ | 74,348 | $ | 74,348 | $ | - | $ | - |
Subsequent_Events
Subsequent Events | 3 Months Ended | |
Mar. 31, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
Note 9. | Subsequent Events | |
In May 2014, the Company sold 5,000,000 units in a private offering for $750,000 in cash, or $0.15 per unit. Each unit consisted of one share of the Company's common stock and one warrant. Two warrants entitle the holder to purchase one share of common stock at a price of $0.35 per share at any time on or before May 1, 2016. |
Nature_of_Business_and_Signifi1
Nature of Business and Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Nature of Business and Significant Accounting Policies [Abstract] | ' | ||||||||
Nature of business and principles of consolidation | ' | ||||||||
Nature of business and principles of consolidation: | |||||||||
The accompanying Condensed Consolidated Financial Statements of Tara Minerals Corp. (the "Company") should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2013. Significant accounting policies disclosed therein have not changed, except as noted below. | |||||||||
Tara Minerals owns 99.9% of the common stock of American Metal Mining S.A. de C.V. ("AMM"), a Mexican corporation, and owns 87% of the common stock of Adit Resources Corp. ("Adit"). Adit in turns owns 99.99% of American Copper Mining, S.A. de C.V. ("ACM"). All of Tara Minerals' operations in Mexico are conducted through AMM and ACM since Mexican law provides that only Mexican corporations are allowed to own mining properties. AMM's primary focus is on industrial minerals, e.g. copper, zinc. Adit, through ACM, focuses on gold mining concessions. | |||||||||
The Company is a mining company in the exploration stage and presents inception to date information, in accordance with the Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") Development Stage Entities Topic. | |||||||||
In these financial statements, references to "Company," "we," "our," and/or "us," refer to Tara Minerals Corp. and, unless the context indicates otherwise, its consolidated subsidiaries. | |||||||||
Tara Minerals is a subsidiary of Tara Gold Resources Corp. ("Tara Gold" or "the Company's Parent"). | |||||||||
The accompanying condensed consolidated financial statements and the related footnote information are unaudited. In the opinion of management, they include all normal recurring adjustments necessary for a fair presentation of the condensed consolidated balance sheets of the Company as of March 31, 2014 and December 31, 2013, the condensed consolidated results of its operations for the three months ended March 31, 2014 and 2013 and the condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2013. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. | |||||||||
The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All amounts are in U.S. dollars unless otherwise indicated. All significant inter-company balances and transactions have been eliminated in consolidation. | |||||||||
The reporting currency of the Company and Adit is the U.S. dollar. The functional currency of AMM and ACM is the Mexican Peso. As a result, the financial statements of these subsidiaries have been re-measured from Mexican pesos into U.S. dollars using (i) current exchange rates for monetary asset and liability accounts, (ii) historical exchange rates for non-monetary asset and liability accounts, (iii) historical exchange rates for revenues and expenses associated with non-monetary assets and liabilities, and (iv) the weighted average exchange rate of the reporting period for all other revenues and expenses. In addition, foreign currency transaction gains and losses resulting from U.S. dollar denominated transactions are eliminated. The resulting re-measurement gain (loss) is recorded to other comprehensive gain (loss). | |||||||||
Current and historical exchange rates are not indicative of what future exchange rates will be and should not be construed as such. | |||||||||
Relevant exchange rates used in the preparation of the financial statements for AMM and ACM are as follows for the three months ended March 31, 2014 and 2013. Mexican pesos per one U.S. dollar: | |||||||||
31-Mar-14 | |||||||||
Current exchange rate | Ps. | 13.0841 | |||||||
Weighted average exchange rate for the three months ended | Ps. | 13.2339 | |||||||
31-Mar-13 | |||||||||
Current exchange rate | Ps. | 12.3546 | |||||||
Weighted average exchange rate for the three months ended | Ps. | 12.6468 | |||||||
Reclassifications | ' | ||||||||
Reclassifications | |||||||||
Certain reclassifications, which have no effect on net loss, have been made in the prior period financial statements to conform to the current year presentation. | |||||||||
Estimates | ' | ||||||||
Estimates | |||||||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management routinely makes judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. | |||||||||
Recoverable Value-Added Taxes (IVA) and Allowance for Doubtful Accounts | ' | ||||||||
Recoverable Value-Added Taxes (IVA) and Allowance for Doubtful Accounts | |||||||||
Impuesto al Valor Agregado taxes (IVA) are recoverable value-added taxes charged by the Mexican government on goods sold and services rendered at a rate of 16%. Under certain circumstances, these taxes are recoverable by filing a tax return and as determined by the Mexican taxing authority. Our allowance in association with our receivable from IVA from our Mexico subsidiary is based on our determination that the Mexican government may not allow the complete refund of these taxes. | |||||||||
Each period, receivables are reviewed for collectability. When a receivable has doubtful collectability we allow for the receivable until we are either assured of collection (and reverse the allowance) or assured that a write-off is necessary. | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(Unaudited) | |||||||||
Allowance - recoverable value-added taxes | $ | 1,599,620 | $ | 1,597,407 | |||||
Allowance - other receivables | 348,737 | 348,433 | |||||||
Total | $ | 1,948,357 | $ | 1,945,840 | |||||
Bad debt expense was $2,517 and $118,235 at March 31, 2014 and 2013, respectively. | |||||||||
AMM received refunds of $40,489 for IVA taxes during January and February 2014. | |||||||||
Reclamation and remediation costs (asset retirement obligations) | ' | ||||||||
Reclamation and remediation costs (asset retirement obligations) | |||||||||
Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and abandonment costs. | |||||||||
Future remediation costs for reprocessing plant and buildings are accrued based on management's best estimate, at the end of each period, of the undiscounted costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing remediation, maintenance and monitoring costs. Changes in estimates are reflected in earnings in the period an estimate is revised. There were no reclamation and remediation costs incurred or accrued as of March 31, 2014 and 2013. | |||||||||
Income taxes | ' | ||||||||
Income taxes | |||||||||
Income taxes are provided for using the asset and liability method of accounting in accordance with the Income Taxes Topic of the FASB ASC. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized by management. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The computation of limitations relating to the amount of such tax assets, and the determination of appropriate valuation allowances relating to the realization of such assets, are inherently complex and require the exercise of judgment. As additional information becomes available, management continually assesses the carrying value of our net deferred tax assets. | |||||||||
Fair Value Accounting | ' | ||||||||
Fair Value Accounting | |||||||||
As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||||||
The three levels of the fair value hierarchy are described below: | |||||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||||||||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; | ||||||||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||||||||
Recently Adopted and Recently Issued Accounting Guidance | ' | ||||||||
Recently Adopted and Recently Issued Accounting Guidance | |||||||||
Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC, did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows. |
Nature_of_Business_and_Signifi2
Nature of Business and Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Nature of Business and Significant Accounting Policies [Abstract] | ' | ||||||||
Summary of Exchange Rates | ' | ||||||||
Relevant exchange rates used in the preparation of the financial statements for AMM and ACM are as follows for the three months ended March 31, 2014 and 2013. Mexican pesos per one U.S. dollar: | |||||||||
31-Mar-14 | |||||||||
Current exchange rate | Ps. | 13.0841 | |||||||
Weighted average exchange rate for the three months ended | Ps. | 13.2339 | |||||||
31-Mar-13 | |||||||||
Current exchange rate | Ps. | 12.3546 | |||||||
Weighted average exchange rate for the three months ended | Ps. | 12.6468 | |||||||
Schedule of Allowances of Receivables | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(Unaudited) | |||||||||
Allowance - recoverable value-added taxes | $ | 1,599,620 | $ | 1,597,407 | |||||
Allowance - other receivables | 348,737 | 348,433 | |||||||
Total | $ | 1,948,357 | $ | 1,945,840 |
Property_plant_equipment_mine_1
Property, plant, equipment, mine development and land, net (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Line Items] | ' | ||||||||||||
Schedule of Property, Plant, Equipment, Mine Development, Land and Construction in Progress | ' | ||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
(Unaudited) | |||||||||||||
Land | $ | 19,590 | $ | 19,590 | |||||||||
Mining concessions: | |||||||||||||
Pilar (a) | 710,172 | 710,172 | |||||||||||
Don Roman (See Note 4) | 521,739 | 521,739 | |||||||||||
Las Nuvias | 100,000 | 100,000 | |||||||||||
Centenario | 635,571 | 635,571 | |||||||||||
La Palma | 80,000 | 80,000 | |||||||||||
La Verde | 60,000 | 60,000 | |||||||||||
Dixie Mining District | 650,000 | 650,000 | |||||||||||
Picacho Groupings | 1,571,093 | 1,571,093 | |||||||||||
Mining concessions | 4,328,575 | 4,328,575 | |||||||||||
Property, plant and equipment | 3,897,097 | 4,142,245 | |||||||||||
8,245,262 | 8,490,410 | ||||||||||||
Less - accumulated depreciation | (1,177,247 | ) | (1,145,991 | ) | |||||||||
$ | 7,068,015 | $ | 7,344,419 | ||||||||||
Pilar, Don Roman, Las Nuvias, Centenario, La Palma and La Verde properties are located in Mexico and are known as the Don Roman Groupings. | |||||||||||||
The Picacho and Picacho Fractions are located in Mexico and are known as the Picacho Groupings. | |||||||||||||
a. | In January 2007, the Company acquired the Pilar de Mocoribo Prospect ("Pilar") from Tara Gold for $739,130 plus $115,737 of value-added tax (as amended). The Company owes $535,659 for this mining concession (including the applicable value-added tax). | ||||||||||||
In accordance with the Interest Topic of FASB ASC, the future payments of the total payment amount of $739,130 have been discounted using the incremental borrowing rate of 5.01%. As of March 31, 2014, the present value of future payments is as follows: | |||||||||||||
Debt | IVA | Total | |||||||||||
Total remaining debt | $ | 486,739 | $ | 77,878 | $ | 564,617 | |||||||
Imputed interest | (28,958 | ) | - | (28,958 | ) | ||||||||
Present value of debt | $ | 457,781 | $ | 77,878 | $ | 535,659 | |||||||
Schedule of Note Payable Instruments | ' | ||||||||||||
As of March 31, 2014, the present value of future payments is as follows: | |||||||||||||
Debt | IVA | Total | |||||||||||
Total remaining debt | $ | 486,739 | $ | 77,878 | $ | 564,617 | |||||||
Imputed interest | (28,958 | ) | - | (28,958 | ) | ||||||||
Present value of debt | $ | 457,781 | $ | 77,878 | $ | 535,659 |
Notes_Payable_and_Convertible_1
Notes Payable and Convertible Notes Payable, net (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Notes Payable and Convertible Notes Payable, net [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Notes Payable | ' | ||||||||||||||||||||||||
The following table represents the outstanding balance of notes payable. | |||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Auto loans | $ | 62,523 | $ | 66,619 | |||||||||||||||||||||
Notes payable | 80,000 | - | |||||||||||||||||||||||
Convertible notes payable, net | 205,108 | 75,652 | |||||||||||||||||||||||
347,631 | 142,271 | ||||||||||||||||||||||||
Less - current portion | (118,784 | ) | (38,614 | ) | |||||||||||||||||||||
Less - current portion convertible notes payable, net | (205,108 | ) | (75,652 | ) | |||||||||||||||||||||
Total - non-current portion | $ | 23,739 | $ | 28,005 | |||||||||||||||||||||
Five Year Maturity Schedule for Notes Payable | ' | ||||||||||||||||||||||||
The five year maturity schedule for notes payable and convertible notes payable, net is presented below: | |||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Total | ||||||||||||||||||||
Auto loans | $ | 38,784 | $ | 9,501 | $ | 5,948 | $ | 6,178 | $ | 2,112 | $ | 62,523 | |||||||||||||
Note payables | 80,000 | - | - | - | - | 80,000 | |||||||||||||||||||
Convertible note payable, net | 205,108 | - | - | - | - | 205,108 | |||||||||||||||||||
Total | $ | 323,892 | $ | 9,501 | $ | 5,948 | $ | 6,178 | $ | 2,112 | $ | 347,631 |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of Related Party Transactions | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(Unaudited) | |||||||||
Due from related parties | $ | 119,920 | $ | 221,592 | |||||
Due to related parties | (1,587,503 | ) | (1,739,207 | ) | |||||
$ | (1,467,583 | ) | $ | (1,517,615 | ) |
Options_Tables
Options (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Options [Abstract] | ' | ||||||||||||||||
Summary of Fair Value Assumptions | ' | ||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
Expected volatility | 0.00% | 218.84% | |||||||||||||||
Weighted-average volatility | 0.00% | 218.84% | |||||||||||||||
Expected dividends | 0 | 0 | |||||||||||||||
Expected term (in years) | 0 | 2 | |||||||||||||||
Risk-free rate | 0.00% | 0.22% | |||||||||||||||
Summary of Option Activity | ' | ||||||||||||||||
A summary of option activity under the plans as of March 31, 2014 and changes during the period then ended is presented below: | |||||||||||||||||
Options | Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||||||||
Exercise Price | Remaining | Intrinsic | |||||||||||||||
Contractual Term | Value | ||||||||||||||||
Outstanding at December 31, 2013 | 2,750,000 | $ | 0.24 | ||||||||||||||
Granted | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Forfeited, expired or cancelled | - | - | |||||||||||||||
Outstanding at March 31, 2014 | 2,750,000 | $ | 0.24 | 1.5 | $ | 167,440 | |||||||||||
Exercisable at March 31, 2014 | 2,340,000 | $ | 0.24 | 1.5 | $ | 167,440 | |||||||||||
Non-vested Options | Options | Weighted-Average | |||||||||||||||
Grant-Date Fair Value | |||||||||||||||||
Non-vested at December 31, 2013 | 410,000 | $ | 0.48 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | - | - | |||||||||||||||
Forfeited, expired or cancelled | - | - | |||||||||||||||
Non-vested at March 31, 2014 | 410,000 | $ | 0.48 |
Noncontrolling_Interest_Tables
Non-controlling Interest (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Non-controlling Interest [Abstract] | ' | ||||||||
Summary of Non-controlling Interests | ' | ||||||||
Cumulative results of these activities results in: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(Unaudited) | |||||||||
Common stock for cash | $ | 1,999,501 | $ | 1,999,501 | |||||
Common stock for services | 95,215 | 95,215 | |||||||
Exploration expenses paid for in subsidiary common stock | 240,000 | 240,000 | |||||||
Stock based compensation | 1,374,880 | 1,374,880 | |||||||
Cumulative net loss attributable to non-controlling interest | (20,478 | ) | (15,815 | ) | |||||
Treasury stock | (500,000 | ) | (500,000 | ) | |||||
Other | 6 | 6 | |||||||
Total non-controlling interest | $ | 3,189,124 | $ | 3,193,787 | |||||
Summary of Non-controlling Interest Activity | ' | ||||||||
A summary of activity as of March 31, 2014 and changes during the period then ended is presented below: | |||||||||
Non-controlling interest at December 31, 2013 | $ | 3,193,787 | |||||||
Net income attributable to non-controlling interest | (4,663 | ) | |||||||
Non-controlling interest at March 31, 2014 | $ | 3,189,124 |
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value [Abstract] | ' | ||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value | ' | ||||||||||||||||
Fair Value at March 31, 2014 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
None | $ | - | $ | - | $ | - | $ | - | |||||||||
Liabilities: | |||||||||||||||||
Beneficial conversion feature of note payable (See Note 3) | $ | 54,892 | $ | 54,892 | $ | - | $ | - | |||||||||
Fair Value at December 31, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
Fair market value of ACM's net identifiable assets acquired | $ | 1,589,000 | $ | - | $ | - | $ | 1,589,000 | |||||||||
Liabilities: | |||||||||||||||||
Beneficial conversion feature of note payable (See Note 3) | $ | 74,348 | $ | 74,348 | $ | - | $ | - |
Nature_of_Business_and_Signifi3
Nature of Business and Significant Accounting Policies (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Nature Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Current exchange rate | 13.0841 | 12.3546 | ' |
Weighted average exchange rate for the three months ended | 13.2339 | 12.6468 | ' |
Foreign value-added tax rate | 16.00% | ' | ' |
Allowance | $1,948,357 | ' | $1,945,840 |
Bad debt expense | 2,517 | 118,235 | ' |
Allowance-Recoverable Value-Added Taxes [Member] | ' | ' | ' |
Nature Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Allowance | 1,599,620 | ' | 1,597,407 |
Allowance-Other Receivables [Member] | ' | ' | ' |
Nature Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Allowance | 348,737 | ' | 348,433 |
American Metal Mining S.A. de C.V. [Member] | ' | ' | ' |
Nature Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Interest in subsidiaries | 99.90% | ' | ' |
Income tax refund | $40,489 | ' | ' |
Adit Resources Corp [Member] | ' | ' | ' |
Nature Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Interest in subsidiaries | 87.00% | ' | ' |
Adit Resources Corp [Member] | American Copper Mining S.A. de C.V. [Member] | ' | ' | ' |
Nature Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Interest in subsidiaries | 99.99% | ' | ' |
Property_plant_equipment_mine_2
Property, plant, equipment, mine development and land, net (Schedule of Property, Plant, Equipment, Mine Development, Land and Construction in Progress) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | $8,245,262 | $8,490,410 |
Less - accumulated depreciation | -1,177,247 | -1,145,991 |
Property, plant, equipment, mine development, land and construction in progress, net, total | 7,068,015 | 7,344,419 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | 19,590 | 19,590 |
Pilar [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | 710,172 | 710,172 |
Don Roman [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | 521,739 | 521,739 |
Las Nuvias [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | 100,000 | 100,000 |
Centenario [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | 635,571 | 635,571 |
La Palma [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | 80,000 | 80,000 |
La Verde [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | 60,000 | 60,000 |
Dixie Mining District [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | 650,000 | 650,000 |
Picacho Groupings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | 1,571,093 | 1,571,093 |
Mining Concessions [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | 4,328,575 | 4,328,575 |
Property, Plant and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, equipment, mine development, land and construction in progress | $3,897,097 | $4,142,245 |
Property_plant_equipment_mine_3
Property, plant, equipment, mine development and land, net (Narrative) (Details) (USD $) | 3 Months Ended | 95 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Notes payable | $347,631 | ' | $347,631 | $142,271 |
Long-term debt, total future payments | 347,631 | ' | 347,631 | ' |
Loss on settlement | ' | 861,996 | 1,814,996 | ' |
Pilar [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Purchase price of acquisition | 739,130 | ' | ' | ' |
Value added tax consideration at acquisition of entity | 115,737 | ' | 115,737 | ' |
Long-term debt, total future payments | 535,659 | ' | 535,659 | ' |
Incremental borrowing rate used to calculate discount | 5.01% | ' | 5.01% | ' |
Pilar [Member] | Debt [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Notes payable | 457,781 | ' | 457,781 | ' |
Pilar [Member] | IVA [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Notes payable | $77,878 | ' | $77,878 | ' |
Property_plant_equipment_mine_4
Property, plant, equipment, mine development and land, net (Schedule of Note Payable Instruments) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Present value of future payments: | ' | ' |
Present value of debt | $347,631 | $142,271 |
Debt [Member] | Pilar [Member] | ' | ' |
Present value of future payments: | ' | ' |
Total remaining debt | 486,739 | ' |
Imputed interest | -28,958 | ' |
Present value of debt | 457,781 | ' |
IVA [Member] | Pilar [Member] | ' | ' |
Present value of future payments: | ' | ' |
Total remaining debt | 77,878 | ' |
Imputed interest | ' | ' |
Present value of debt | 77,878 | ' |
Total [Member] | Pilar [Member] | ' | ' |
Present value of future payments: | ' | ' |
Total remaining debt | 564,617 | ' |
Imputed interest | -28,958 | ' |
Present value of debt | $535,659 | ' |
Notes_Payable_and_Convertible_2
Notes Payable and Convertible Notes Payable, net (Schedule of Notes Payable) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Present value of debt | $347,631 | $142,271 |
Less - current portion | -118,784 | -38,614 |
Less: Current portion convertible notes payable, net | -205,108 | -75,652 |
Total - non-current portion | 23,739 | 28,005 |
Auto Loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Present value of debt | 62,523 | 66,619 |
Notes Payable [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Present value of debt | 80,000 | ' |
Convertible Notes Payable, Net [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Present value of debt | $205,108 | $75,652 |
Notes_Payable_and_Convertible_3
Notes Payable and Convertible Notes Payable, net (Five Year Maturity Schedule for Notes Payable) (Details) (USD $) | Mar. 31, 2014 |
Debt Instrument [Line Items] | ' |
2014 | $323,892 |
2015 | 9,501 |
2016 | 5,948 |
2017 | 6,178 |
2018 | 2,112 |
Total | 347,631 |
Auto Loans [Member] | ' |
Debt Instrument [Line Items] | ' |
2014 | 38,784 |
2015 | 9,501 |
2016 | 5,948 |
2017 | 6,178 |
2018 | 2,112 |
Total | 62,523 |
Notes Payable [Member] | ' |
Debt Instrument [Line Items] | ' |
2014 | 80,000 |
2015 | ' |
2016 | ' |
2017 | ' |
2018 | ' |
Total | 80,000 |
Convertible Notes Payable, Net [Member] | ' |
Debt Instrument [Line Items] | ' |
2014 | 205,108 |
2015 | ' |
2016 | ' |
2017 | ' |
2018 | ' |
Total | $205,108 |
Notes_Payable_and_Convertible_4
Notes Payable and Convertible Notes Payable, net (Narrative) (Details) (USD $) | 3 Months Ended | 95 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Note payable, outstanding balance | $118,784 | ' | $118,784 | $38,614 |
Beneficial conversion value for convertible debt and financial instruments | 94,850 | ' | 2,109,850 | ' |
Convertible note one [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Note payable amount | 80,000 | ' | 80,000 | ' |
Debt instrument, maturity date | 1-May-14 | ' | ' | ' |
Gain on extinguishment of debt | 5,000 | ' | ' | ' |
Convertible note two [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt instrument, maturity date | 1-Jul-14 | ' | ' | ' |
Long-term convertible debt | 150,000 | ' | 150,000 | ' |
Beneficial conversion value for convertible debt and financial instruments | 120,000 | ' | ' | ' |
Debt instrument, conversion price | $0.10 | ' | $0.10 | ' |
Amortization | 120,000 | ' | ' | ' |
Interest expense | 8,000 | ' | ' | ' |
Convertible note four [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt instrument, maturity date | 1-Jul-14 | ' | ' | ' |
Long-term convertible debt | 60,000 | ' | 60,000 | ' |
Beneficial conversion value for convertible debt and financial instruments | 60,000 | ' | ' | ' |
Debt instrument, conversion price | $0.10 | ' | $0.10 | ' |
Amortization | 39,101 | ' | ' | ' |
Interest expense | 2,000 | ' | ' | ' |
Convertible note three [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt instrument, maturity date | 1-Jul-14 | ' | ' | ' |
Long-term convertible debt | 50,000 | ' | 50,000 | ' |
Beneficial conversion value for convertible debt and financial instruments | 34,850 | ' | ' | ' |
Debt instrument, conversion price | $0.10 | ' | $0.10 | ' |
Amortization | $857 | ' | ' | ' |
Related_Party_Transactions_Sch
Related Party Transactions (Schedule of Related Party Transactions) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Related Party Transactions [Abstract] | ' | ' |
Due from related parties | $119,920 | $221,592 |
Due to related parties | -1,587,503 | -1,739,207 |
Amounts due from (to) related parties | ($1,467,583) | ($1,517,615) |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 3 Months Ended | 95 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Adit Resources Corp [Member] | Adit Resources Corp [Member] | Adit Resources Corp [Member] | American Metal Mining S.A. de C.V. [Member] | American Metal Mining S.A. de C.V. [Member] | American Metal Mining S.A. de C.V. [Member] | Tara Gold [Member] | |||||
Amermin [Member] | Amermin [Member] | Amermin [Member] | |||||||||
Pilar [Member] | Don Roman [Member] | ||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | $5,413,414 | $4,286,663 | ' | ' | ' | ' |
Due from related parties | 119,920 | ' | 119,920 | 221,592 | 610,000 | ' | ' | ' | 535,659 | 211,826 | 177,419 |
Due to related parties | 1,587,503 | ' | 1,587,503 | 1,739,207 | ' | ' | ' | 1,017,439 | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | 0.00% |
Repayment of related party debt | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, variable interest reference rate | ' | ' | ' | ' | 'U.S. prime | ' | ' | ' | ' | ' | ' |
Interest spread on variable rate | ' | ' | ' | ' | 3.25% | ' | ' | ' | ' | ' | ' |
Options_Summary_of_Fair_Value_
Options (Summary of Fair Value Assumptions) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Options [Abstract] | ' | ' |
Expected volatility | 0.00% | 218.84% |
Weighted-average volatility | 0.00% | 218.84% |
Expected dividends | $0 | $0 |
Expected term (in years) | '0 years | '2 years |
Risk-free rate | 0.00% | 0.22% |
Options_Summary_of_Option_Acti
Options (Summary of Option Activity) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Shares | ' |
Outstanding at December 31, 2013 | 2,750,000 |
Granted | ' |
Exercised | ' |
Forfeited, expired or cancelled | ' |
Outstanding at March 31, 2014 | 2,750,000 |
Exercisable at March 31, 2014 | 2,340,000 |
Weighted-Average Exercise Price | ' |
Outstanding at December 31, 2013 | $0.24 |
Granted | ' |
Exercised | ' |
Forfeited, expired or cancelled | ' |
Outstanding at March 31, 2014 | $0.24 |
Exercisable at March 31, 2014 | $0.24 |
Weighted-Average Remaining Contractual Term | ' |
Outstanding at March 31, 2014 | '1 year 6 months |
Exercisable at March 31, 2014 | '1 year 6 months |
Aggregate Intrinsic Value | ' |
Outstanding at March 31, 2014 | $167,440 |
Exercisable at March 31, 2014 | $167,440 |
Non-vested Options | ' |
Non-vested at December 31, 2013 | 410,000 |
Granted | ' |
Vested | ' |
Forfeited, expired or cancelled | ' |
Non-vested at March 31, 2014 | 410,000 |
Weighted -Average Grant-Date Fair Value | ' |
Non-vested at December 31, 2013 | $0.48 |
Granted | ' |
Vested | ' |
Forfeited, expired or cancelled | ' |
Non-vested at March 31, 2014 | $0.48 |
Noncontrolling_Interest_Summar
Non-controlling Interest (Summary of Cumulative Results) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Non-controlling Interest [Abstract] | ' | ' |
Common stock for cash | $1,999,501 | $1,999,501 |
Common stock for services | 95,215 | 95,215 |
Stock based compensation | 1,374,880 | 1,374,880 |
Exploration expenses paid for in subsidiary common stock | 240,000 | 240,000 |
Cumulative net loss attributable to non-controlling interest | -20,478 | -15,815 |
Treasury stock | -500,000 | -500,000 |
Other | 6 | 6 |
Total non-controlling interest | $3,189,124 | $3,193,787 |
Noncontrolling_Interest_Summar1
Non-controlling Interest (Summary of Activity) (Details) (USD $) | 3 Months Ended | 95 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |
Non-controlling Interest [Abstract] | ' | ' | ' |
Non-controlling interest at December 31, 2013 | $3,193,787 | ' | ' |
Net loss attributable to non-controlling interest | -4,663 | -870 | -20,487 |
Non-controlling interest at March 31, 2014 | $3,189,124 | ' | $3,189,124 |
Fair_Value_Schedule_of_Assets_
Fair Value (Schedule of Assets and Liabilities Measured at Fair Value) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Fair market value of ACM's net identifiable assets acquired | ' | ' |
None | ' | ' |
Liabilities: | ' | ' |
Beneficial conversion feature of note payable (See Note 3) | 54,892 | 74,348 |
Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Fair market value of ACM's net identifiable assets acquired | ' | ' |
None | ' | ' |
Liabilities: | ' | ' |
Beneficial conversion feature of note payable (See Note 3) | ' | ' |
Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Fair market value of ACM's net identifiable assets acquired | ' | 1,589,000 |
None | ' | ' |
Liabilities: | ' | ' |
Beneficial conversion feature of note payable (See Note 3) | ' | ' |
Total [Member] | ' | ' |
Assets: | ' | ' |
Fair market value of ACM's net identifiable assets acquired | ' | 1,589,000 |
None | ' | ' |
Liabilities: | ' | ' |
Beneficial conversion feature of note payable (See Note 3) | $54,892 | $74,348 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Proceeds from issuance of private placement | $750,000 |
Shares sold in private offering | 5,000,000 |
Stock trading price | $0.15 |
Purchase price per share | $0.35 |