Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Oct. 31, 2013 | Dec. 16, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Star Gold Corp. | ' |
Entity Central Index Key | '0001401835 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Oct-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--04-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 35,036,326 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2013 | ' |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Oct. 31, 2013 | Apr. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Cash and cash equivalents | $1,008,288 | $353,571 |
Receivable from sale of stock | 60,000 | 334,000 |
Prepaid expenses | 11,143 | 68,482 |
TOTAL CURRENT ASSETS | 1,079,431 | 756,053 |
EQUIPMENT AND MINING INTERESTS, net (NOTE 5) | 395,768 | 384,725 |
OTHER LONG-TERM ASSETS | 21,600 | 21,600 |
TOTAL ASSETS | 1,496,799 | 1,162,378 |
Accounts payable | 9,267 | 8,897 |
Other accrued liabilities | 4,215 | 11,700 |
TOTAL CURRENT LIABILITIES | 13,482 | 20,597 |
TOTAL LIABILITIES | 13,482 | 20,597 |
COMMITMENTS AND CONTINGENCIES (NOTE 5) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred Stock, $.001 par value; 10,000,0000 shares authorized, none issued and outstanding | ' | ' |
Common Stock, $.001 par value; 300,000,000 shares authorized; 35,036,326 and 30,612,501 shares issued and outstanding, respectively. | $35,036 | $30,612 |
Additional paid-in capital | 8,527,848 | 7,293,682 |
Accumulated deficit | -7,079,567 | -6,182,513 |
TOTAL STOCKHOLDERS' EQUITY | 1,483,317 | 1,141,781 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,496,799 | $1,162,378 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) | Oct. 31, 2013 | Apr. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, $.001 par value, authorized | 10,000,000 | 10,000,000 |
Preferred stock, $.001 par value, issued | 0 | 0 |
Common Stock, $.001 par value, authorized | 300,000,000 | 300,000,000 |
Common stock, $.001 par value, issued | 35,036,326 | 30,612,501 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | 59 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' | ' |
REVENUE | ' | ' | ' | ' | ' |
COST OF REVENUE | ' | ' | ' | ' | ' |
GROSS PROFIT | ' | ' | ' | ' | ' |
Mineral exploration expense | 54,955 | 493,528 | 516,296 | 658,975 | 1,858,730 |
Legal and professional fees | 70,063 | 41,103 | 108,260 | 94,565 | 651,824 |
Management and administrative | 177,575 | 287,666 | 269,053 | 580,203 | 1,991,208 |
Depreciation | 1,479 | 1,591 | 2,957 | 2,958 | 10,222 |
Directors fees | ' | 3,000 | 750 | 3,000 | 12,950 |
TOTAL OPERATING EXPENSES | 304,072 | 826,888 | 897,316 | 1,339,701 | 4,524,934 |
LOSS FROM OPERATIONS | -304,072 | -826,888 | -897,316 | -1,339,701 | -4,524,934 |
Loss on extinguishment of debt | ' | ' | ' | ' | -1,639,575 |
Amortization of debt discount | ' | ' | ' | -119,821 | -874,421 |
Financing expense | ' | -8,000 | ' | -8,000 | -13,700 |
Interest income (expense) | 159 | -122 | 262 | -236 | -26,937 |
TOTAL OTHER INCOME (EXPENSE) | 159 | -8,122 | 262 | -128,057 | -2,554,633 |
NET LOSS BEFORE INCOME TAXES | -303,913 | -835,010 | -897,054 | -1,467,758 | -7,079,567 |
Provision for income taxes | ' | ' | ' | ' | ' |
NET LOSS | ($303,913) | ($835,010) | ($897,054) | ($1,467,758) | ($7,079,567) |
Basic and diluted loss per share | ($0.01) | ($0.04) | ($0.03) | ($0.07) | ' |
Basic and diluted weighted average number shares outstanding | 31,904,744 | 22,948,752 | 31,258,623 | 21,827,491 | ' |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | 59 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | |
Statement of Cash Flows [Abstract] | ' | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ($706,083) | ($722,568) | ($3,296,951) |
Net loss | -897,054 | -1,467,758 | -7,079,567 |
Common stock issued in lieu of interest | ' | 146 | 146 |
Common stock issued in consideration of servivces | 8,250 | ' | 100,650 |
Stock based compensation | 129,540 | 354,048 | 1,098,187 |
Interest expense from debt discounts | ' | 119,821 | 874,421 |
Loss on extinguishment of debt | ' | ' | 1,639,575 |
Depreciation | 2,957 | 2,958 | 10,222 |
Prepaid expenses | 57,339 | 105,027 | -11,143 |
Accounts payable | 370 | 10,310 | 29,366 |
Other accrued expenses | -7,485 | 152,880 | 41,192 |
Net cash used by operating activities | -706,083 | -722,568 | -3,296,951 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Payments for mining interests | -14,000 | -11,000 | -231,000 |
Purchase of equipment | ' | -1,986 | -28,993 |
Restricted cash as collateral for exploration bonds | ' | ' | -21,600 |
Net cash used by investing activities | -14,000 | -12,986 | -281,593 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from issuance of stock and warrants | 1,100,800 | ' | 2,060,146 |
Proceeds from exercise of warrants | ' | 256,734 | 1,137,486 |
Proceeds from convertible debentures and warrants | ' | 250,000 | 969,600 |
Receivable from sale of stock | 274,000 | ' | 274,000 |
Proceeds from short-term notes, related party | ' | 30,000 | 175,600 |
Repayment of short-term notes, related party | ' | ' | -30,000 |
Net cash provided by financing activities | 1,374,800 | 536,734 | 4,586,832 |
Net increase (decrease) in cash | 654,717 | -198,820 | 1,008,288 |
CASH AT BEGINNING OF PERIOD | 353,571 | 225,940 | ' |
CASH AT END OF PERIOD | 1,008,288 | 27,120 | 1,008,288 |
NON-CASH FINANCING AND INVESTING ACTIVITIES: | ' | ' | ' |
Options to purchase common stock issued for mining interests | 0 | 0 | 111,249 |
Common stock payable/issued for mining interests | ' | ' | 37,000 |
Short term notes, related party converted to debenture | ' | ' | 145,400 |
Debentures converted to common stock payable | ' | 250,000 | 1,150,000 |
Accrued interest paid with common stock payable | ' | ' | 22,276 |
Executive compensation paid with common stock payable | ' | ' | 92,000 |
Common stock issued for receivable from sale of stock | 60,000 | ' | 394,000 |
Common stock issued for common stock payable | ' | $1,010,710 | $1,016,326 |
Note_1_Nature_of_Operations
Note 1 Nature of Operations | 6 Months Ended |
Oct. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Operations | ' |
NOTE 1 - NATURE OF OPERATIONS | |
Star Gold Corp. (the "Company") was initially incorporated as Elan Development, Inc., in the State of Nevada on December 8, 2006. The Company was originally organized to explore mineral properties in British Columbia, Canada but the Company is currently focusing on gold-bearing properties in Nevada. | |
The financial statement represents those of an exploration stage company whose main focus is in the exploration of gold bearing properties. The Company's main business consists of assembling and/or acquiring land packages and mining claims the Company believes have potential mining reserves, and expending capital to explore these claims by drilling, geophysical work or other exploration work deemed necessary. The business is a high risk business as there is no guarantee that the Company's exploration work will ultimately discover or produce any economically viable minerals. |
Note_2_Significant_Accounting_
Note 2 Significant Accounting Policies | 6 Months Ended | ||||
Oct. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Significant Accounting Policies | ' | ||||
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | |||||
Basis of Presentation | |||||
This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States. The Company has not produced any revenue from its principal business and is an exploration stage company as defined by the Accounting Standard Codification (ASC) Topic 915 “Accounting and Reporting by Development Stage Enterprises”. Until such interests are engaged in commercial production, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage. | |||||
Use of Estimates | |||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements, and the reported amounts of expenses during the reporting period. Significant areas requiring the use of management assumptions and estimates relate to asset impairments and stock option valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Company’s reported financial position and results of operations. | |||||
Cash and cash equivalents | |||||
For the purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents. | |||||
Restricted cash | |||||
Restricted cash represents collateral for bonds held for exploration permits and is presented as other long-term assets in the balance sheet. | |||||
Fair Value Measures | |||||
ASC Topic 820 "Fair Value Measurements and Disclosures" ("ASC 820") requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | |||||
Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||
Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quote prices for similar assets or liabilities in active markets; quoted prices for identical assets in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||
Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||
Mining Interests and Mineral Exploration Expenditures | |||||
Exploration costs are expensed in the period in which they occur. The Company capitalizes costs for acquiring and leasing mining properties and expenses costs to maintain mineral rights as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mining interests are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. | |||||
Equipment | |||||
Equipment are stated at cost. Depreciation of equipment is calculated using the straight-line method over the estimated useful lives of the assets, which ranges from three to seven years. Maintenance and repairs are charged to operations as incurred. Significant improvements are capitalized and depreciated over the useful life of the assets. Gains or losses on disposition or retirement of property and equipment are recognized in operating expenses. | |||||
Reclamation and Remediation | |||||
The Company's operations are subject to standards for mine reclamation that have been established by various governmental agencies. In the period in which the Company incurs a contractual obligation for the retirement of tangible long-lived assets, the Company will record the fair value of an asset retirement obligation as a liability. A corresponding asset will also be recorded and depreciated over the life of the asset. After the initial measurement of an asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. To date, the Company has not incurred any contractual obligation requiring recording either a liability or associated asset. | |||||
Impaired Asset Policy | |||||
The Company periodically reviews its long-lived assets to determine if any events or changes in circumstances have transpired which indicate that the carrying value of its assets may not be recoverable, pursuant to guidance established in ASC Topic 360, "Accounting for the Impairment or Disposal of Long-lived Assets". The Company determines impairment by comparing the undiscounted net future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, the assets will be written down to fair value. | |||||
Stock-based Compensation | |||||
The Company estimates the fair value of options to purchase common stock using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), employee forfeiture rate, the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of fair value of stock-based compensation. Options granted have a ten year maximum term and varying vesting periods as determined by the Board. The value of common stock awards is determined based on the closing price of the Company’s stock on the date of the award. | |||||
Loss Per Share | |||||
Basic Earnings Per Share ("EPS") is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants. | |||||
The dilutive effect of outstanding securities for three and six months ended October 31, 2013 and 2012, would be as follows: | |||||
31-Oct-13 | 31-Oct-12 | ||||
Stock options | 3,197,000 | 2,532,000 | |||
Warrants | 3,929,548 | 6,811,793 | |||
Total Possible Dilution | 7,126,548 | 9,343,793 | |||
At October 31, 2013 and 2012, respectively, the effect of the Company's outstanding options and common stock equivalents would have been anti-dilutive. | |||||
Income Taxes | |||||
Deferred income tax liabilities or assets at the end of each period are determined using the tax rates expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized. | |||||
Reclassifications | |||||
Certain reclassifications have been made to the prior period financial statements in order to conform to the 2013 presentation. These reclassifications have no effect on net loss, total assets or accumulated deficit. | |||||
Note_3_Receivable_From_Sale_of
Note 3 Receivable From Sale of Stock | 6 Months Ended |
Oct. 31, 2013 | |
Other Liabilities Disclosure [Abstract] | ' |
Receivable From Sale of Stock | ' |
NOTE 3 – RECEIVABLE FROM SALE OF STOCK | |
As of April 30, 2013, holders exercised 2,226,667 share purchase warrants at $0.15 per share. Proceeds of $334,000 were received during the six months ended October 31, 2013. As of October 31, 2013, receivable from the sale of stock was $60,000, proceeds of which were received thereafter. | |
Note_4_Prepaid_Expenses
Note 4 Prepaid Expenses | 6 Months Ended | ||||
Oct. 31, 2013 | |||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||
Prepaid Expenses | ' | ||||
NOTE 4 – PREPAID EXPENSES | |||||
The following is a summary of the Company’s prepaid expenses at October 31, 2013 and April 30, 2013: | |||||
31-Oct-13 | 30-Apr-13 | ||||
Exploration expense | $ - | $ 41,849 | |||
Directors and officers liability insurance | 11,143 | 26,633 | |||
Total prepaid expenses | $ 11,143 | $ 68,482 | |||
At April 30, 2013, exploration expense was prepaid as deposit on unbilled drilling activity. The prepaid balance was reduced as invoices were applied to ongoing drilling and exploration activities which the Company recognized as exploration expense during the six months ended October 31, 2013. |
Note_5_Equipment_and_Mining_In
Note 5 Equipment and Mining Interests | 6 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Equipment and Mining Interests | ' | |||||||
NOTE 5 – EQUIPMENT AND MINING INTERESTS | ||||||||
The following is a summary of the Company's equipment and mining interests at October 31, 2013 and April 30, 2013, respectively: | ||||||||
31-Oct-13 | 30-Apr-13 | |||||||
Equipment | $ 28,992 | $ 28,992 | ||||||
Less accumulated depreciation | -10,223 | -7,266 | ||||||
Equipment, net of accumulated depreciation | 18,769 | 21,726 | ||||||
Mining interests | 376,999 | 362,999 | ||||||
Total | $ 395,768 | $ 384,725 | ||||||
The Longstreet Property | ||||||||
The schedule of remaining annual payments, minimum expenditures and number of stock options to be issued pursuant to the Longstreet Agreement is as follows: | ||||||||
Required expenditure | Payment to optioner | Annual stock option obligation | Annual stock grant obligation | |||||
15-Jan-14 | $ 450,000 | $ 36,000 | 25,000 | 25,000 | ||||
15-Jan-15 | 550,000 | 56,000 | 25,000 | 25,000 | ||||
15-Jan-16 | 750,000 | 56,000 | 25,000 | 25,000 | ||||
15-Jan-17 | 1,000,000 | 56,000 | 25,000 | 25,000 | ||||
Total | $ 2,750,000 | $ 204,000 | 100,000 | 100,000 | ||||
The Company has performed substantially all required expenditures for the option agreement period ending January 15, 2014. | ||||||||
Excalibur Property | ||||||||
The Excalibur Property Option Agreement was amended on January 30, 2012 revising the payment date of the final required expenditure to August 31, 2012 and thereafter amended on August 31, 2012 extending the payment date of the final expenditure to August 31, 2013. The Excalibur Property Option Agreement was subsequently amended on September 7, 2012, revising the payment date on the final required expenditure to October 31, 2013. On July 12, 2013, the Excalibur Property Option Agreement was amended revising the payment date of the final required expenditure from October 31, 2013 to October 31, 2014. | ||||||||
The schedule of remaining minimum expenditures and number of stock options to be issued pursuant to the Excalibur Property agreement is as follows: | ||||||||
Required expenditure | ||||||||
31-Oct-13 | $ - | |||||||
31-Oct-14 | 100,000 | |||||||
Total | $ 100,000 | |||||||
The Jet Property | ||||||||
The Jet Property Option Agreement was amended on September 7, 2012 revising the payment date of the required 2013 expenditure from July 7, 2013 to August 31, 2013; the extension was granted only for the 2013 payment. On July 12, 2013, the Jet Property Option Agreement was amended revising the payment date of the required 2013 expenditure from August 31, 2013 to August 31, 2014. | ||||||||
The schedule of remaining annual payments and minimum expenditures pursuant to the Jet Agreement is as follows: | ||||||||
Required expenditure | Payment to optioner | |||||||
7-Jul-14 | $ 10,000 | $ 5,000 | ||||||
31-Aug-14 | 20,000 | - | ||||||
7-Jul-15 | 10,000 | 5,000 | ||||||
7-Jul-16 | 10,000 | 5,000 | ||||||
7-Jul-17 | 10,000 | 5,000 | ||||||
Total | $ 60,000 | $ 20,000 | ||||||
The following is a summary of capitalized mineral interests as of October 31, 2013 and April 30, 2012, respectively: | ||||||||
31-Oct-13 | 30-Apr-13 | |||||||
Longstreet Property | $ 180,499 | $ 171,499 | ||||||
Excalibur Property | 176,500 | 176,500 | ||||||
Jet Property | 20,000 | 15,000 | ||||||
Total | $ 376,999 | $ 362,999 | ||||||
Note_6_Related_Party_Transacti
Note 6 Related Party Transactions | 6 Months Ended |
Oct. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
NOTE 6– RELATED PARTY TRANSACTIONS | |
On September 1, 2011, the Company moved its offices to Coeur d’Alene, Idaho and leased office space for $2,500 per month plus a proportionate share of utilities and insurance from Marlin Property Management, LLC (“Marlin”) an entity owned by the spouse of the Company’s then President and current Chairman of the Board. For the three months and six months ended October 31, 2013 and 2012, $8,581 and $8,643, and $16,994 and $17,227, respectively, was paid to this related entity inclusive of the Company’s pro-rata share of common expenses. |
Note_7_Warrants
Note 7 Warrants | 6 Months Ended | ||||||
Oct. 31, 2013 | |||||||
Notes to Financial Statements | ' | ||||||
Warrants | ' | ||||||
NOTE 7 - WARRANTS | |||||||
The following is a summary of the Company’s warrants outstanding: | |||||||
Shares | Weighted Average Exercise Price | Expiration Date | |||||
Outstanding at April 30, 2012 | 7,690,000 | $ 0.16 | |||||
Issued - June 18, 2012 | 833,334 | 0.75 | 18-Jun-14 | ||||
Issued - January 18, 2013 | 894,614 | 0.6 | (a) | 18-Jan-15 | |||
Exercised | -7,593,233 | -0.15 | |||||
Expired | -96,767 | -1.33 | |||||
Outstanding at April 30, 2013 | 1,727,948 | $ 0.67 | |||||
Issued - October 4, 2013 | 2,201,600 | 0.5 | 4-Oct-14 | ||||
Exercised | - | ||||||
Expired | - | ||||||
Balance outstanding at October 31, 2013 | 3,929,548 | $ 0.58 | |||||
Note_8_Stock_Options
Note 8 Stock Options | 6 Months Ended | ||||||||||||||
Oct. 31, 2013 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Stock Options | ' | ||||||||||||||
NOTE 8 - STOCK OPTIONS | |||||||||||||||
Options issued for mining interests | |||||||||||||||
In consideration for mining interests on several properties (see Note 5), the Company is obligated to issue a total of 400,000 stock options based on "fair market price" which is considered to be the closing price of the Company's common stock on the grant dates. | |||||||||||||||
The following is a summary of the Company’s options issued and outstanding in conjunction with certain mining interest agreements on several properties: | |||||||||||||||
For the three and six months ended | For the three and six months ended | ||||||||||||||
31-Oct-13 | 31-Oct-12 | ||||||||||||||
Shares | Price (a) | Shares | Price (a) | ||||||||||||
Beginning balance, outstanding | 300,000 | $ 0.37 | 275,000 | $ 0.36 | |||||||||||
Issued | - | - | - | - | |||||||||||
Exercised | - | - | - | - | |||||||||||
Expired | - | - | - | - | |||||||||||
Balance outstanding | 300,000 | $ 0.37 | 275,000 | $ 0.36 | |||||||||||
(a) Weighted average exercise price per share | |||||||||||||||
Future remaining stock option obligations under the terms of property agreements detailed in Note 5 are as follows: | |||||||||||||||
Fiscal year ending April 30, | Stock options | ||||||||||||||
2014 | 25,000 | ||||||||||||||
2015 | 25,000 | ||||||||||||||
2016 | 25,000 | ||||||||||||||
2017 | 25,000 | ||||||||||||||
100,000 | |||||||||||||||
The aggregate intrinsic value of options issued for mining interests vested and exercisable was $31,000 based on the Company's closing price of $0.40 per common share at October 31, 2013. | |||||||||||||||
Options issued for consulting services | |||||||||||||||
As per an agreement fully executed on October 3, 2012, in consideration for consulting and advisory services rendered, the Company is obligated to issue a total of 1,000 stock options based on 5 day variable weighted-average price (VWAP) at the end of each month of the associated consulting contract. The consultant options vest on the first day of the following month of service and are exercisable for a period of six months following the termination of the agreement. The Company has estimated the fair value of these option grants using the Black-Scholes model with the following information and range of assumptions: | |||||||||||||||
For the six months ended | |||||||||||||||
31-Oct-13 | 31-Oct-12 | ||||||||||||||
Options issued | 6,000 | 2,000 | |||||||||||||
Weighted average volatility | 279.9% to 366.6% | 453.0% to 465.9% | |||||||||||||
Expected dividends | - | - | |||||||||||||
Expected term (years) | 1 | 1 | |||||||||||||
Risk-free rate | 0.10% to 0.15% | 0.15% to 0.17% | |||||||||||||
The following is a summary of the Company’s options issued and outstanding associated with certain consulting agreements: | |||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||
31-Oct-13 | 31-Oct-12 | ||||||||||||||
Shares | Price (a) | Shares | Price (a) | ||||||||||||
Beginning balance, outstanding | 11,000 | $ 0.46 | - | $ - | |||||||||||
Issued | 3,000 | 0.39 | 2,000 | 0.45 | |||||||||||
Exercised | - | - | - | - | |||||||||||
Expired | (2,000) | (0.45) | - | - | |||||||||||
Balance outstanding | 12,000 | $ 0.44 | 2,000 | $ 0.45 | |||||||||||
(a) Weighted average exercise price per share | |||||||||||||||
Shares | Price (a) | Shares | Price (a) | ||||||||||||
Beginning balance, outstanding | 8,000 | $ 0.46 | - | $ - | |||||||||||
Issued | 6,000 | 0.42 | 2,000 | 0.45 | |||||||||||
Exercised | - | - | - | - | |||||||||||
Expired | (2,000) | (0.45) | - | - | |||||||||||
Balance outstanding | 12,000 | $ 0.44 | 2,000 | $ 0.45 | |||||||||||
(a) Weighted average exercise price per share | |||||||||||||||
Fair value of the option grants for consulting services for the three months ended October 31, 2013 and 2012, was $1,109 and $1,508, respectively. Fair value of the option grants for consulting services for the six months ended October 31, 2013 and 2012, was $2,250 and $1,508, respectively. These costs are classified under management and administrative expense. | |||||||||||||||
The aggregate intrinsic value of consultant options vested and exercisable was $99 based on the Company's closing price of $0.40 per common share at October 31, 2013. | |||||||||||||||
Options issued under the 2011 Stock Option/Restricted Plan | |||||||||||||||
The Company established the 2011 Stock Option/Restricted Stock Plan. The Stock Option Plan is administered by the Board of Directors and provides for the grant of stock options to eligible individual including directors, executive officers and advisors that have furnished bona fide services to the Company not related to the sale of securities in a capital-raising transaction. | |||||||||||||||
The Stock Option Plan has a fixed maximum percentage of 10% of the Company's outstanding shares that are eligible for the plan pool, whereby the number of Shares under the plan increases automatically increases as the total number of shares outstanding increase. The number of shares subject to the Stock Option Plan and any outstanding awards will be adjusted appropriately by the Board of Directors if the Company's common stock is affected through a reorganization, merger, consolidation, recapitalization, restructuring, reclassification dividend (other than quarterly cash dividends) or other distribution, stock split, spin-off or sale of substantially all of the Company's assets. | |||||||||||||||
The Stock Option plan also has terms and conditions, including without limitations that the exercise price for stock options granted under the Stock Option Plan must equal the stock's fair market value, based on the closing price per share of common stock, at the time the stock option is granted. The fair value of each option award is estimated on the date of grant utilizing the Black-Scholes model and commonly utilized assumptions associated with the Black-Scholes methodology. Options granted under the Plan have a ten year maximum term and varying vesting periods as determined by the Board. | |||||||||||||||
On June 18, 2012 the Board of Directors authorized the grant of 1,725,000 options to purchase shares of common stock of the Company to various directors, officers and advisors. The options have an exercise price of $0.30 based on the closing price of the Company's common stock on the date of grant and vest over one year. | |||||||||||||||
On May 22, 2013 the Board of Directors authorized the grant of 675,000 options to purchase shares of common stock of the Company to various directors, officers and consultants. The options have an exercise price of $0.29 based on the closing price of the Company’s common stock on the date of grant and vest over one year. | |||||||||||||||
The fair value of each option award was estimated on the date of the grant using the information and assumptions noted in the following table: | |||||||||||||||
Six months ended | Six months ended | ||||||||||||||
31-Oct-13 | 31-Oct-12 | ||||||||||||||
Expected volatility | 305.30% | 276.1% to 350.2% | |||||||||||||
Weighted average volatility | 303.80% | 303.40% | |||||||||||||
Expected dividends | - | - | |||||||||||||
Expected term (years) | 3.1 | 3.1 | |||||||||||||
Expected forfeiture weight | 0% | 0% | |||||||||||||
Risk-free rate | 0.11% | 0.11% to 3.07% | |||||||||||||
The following is a summary of the Company’s options issued and outstanding in conjunction with the Company’s Stock Option Plan: | |||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||
31-Oct-13 | 31-Oct-12 | ||||||||||||||
Shares | Price (a) | Shares | Price (a) | ||||||||||||
Beginning balance, outstanding | 2,890,000 | $ 0.40 | 2,255,000 | $ 0.42 | |||||||||||
Issued | - | - | - | ||||||||||||
Exercised | - | - | - | - | |||||||||||
Forfeited or rescinded | (5,000) | (0.78) | - | - | |||||||||||
Balance outstanding | 2,885,000 | $ 0.40 | 2,255,000 | $ 0.42 | |||||||||||
(a) Weighted average exercise price per share | |||||||||||||||
The following table summarizes additional information about the options under the Company’s Stock Option Plan as of October 31, 2013: | |||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||
31-Oct-13 | 31-Oct-12 | ||||||||||||||
Shares | Price (a) | Shares | Price (a) | ||||||||||||
Beginning balance, outstanding | 2,215,000 | $ 0.43 | 530,000 | $ 0.83 | |||||||||||
Issued | 675,000 | 0.29 | 1,725,000 | 0.3 | |||||||||||
Exercised | - | - | |||||||||||||
Forfeited or rescinded | -5,000 | -0.78 | - | - | |||||||||||
Balance outstanding | 2,885,000 | $ 0.40 | 2,255,000 | $ 0.42 | |||||||||||
Options outstanding | Options exercisable | ||||||||||||||
Date of Grant | Shares | Price (a) | Life | Shares | Price (a) | ||||||||||
27-May-11 | 283,333 | $ 0.90 | 7.58 | 283,333 | $ 0.90 | ||||||||||
22-May-12 | 226,667 | 0.78 | 8.39 | 151,142 | 0.78 | ||||||||||
18-Jun-12 | 1,700,000 | 0.30 | 8.64 | 1,700,000 | 0.30 | ||||||||||
22-May-13 | 675,000 | 0.29 | 9.56 | 337,500 | 0.29 | ||||||||||
Total options | 2,885,000 | $ 0.40 | 8.73 | 2,471,975 | $ 0.40 | ||||||||||
The total value of the Plan stock option awards is expensed ratably over the vesting period of the employees receiving the awards. As of October 31, 2013, total unrecognized compensation cost related to stock-based options and awards is $156,669 and the related weighted average period over which it is expected to be recognized is approximately .42 years. There are 2,471,975 options vested under the Plan at October 31, 2013, and 413,025 unvested options as of the same date. | |||||||||||||||
The average remaining contractual term of the options both outstanding and exercisable at October 31, 2013 was 8.73 years. No options were exercised during the six months ended October 31, 2013. | |||||||||||||||
Total compensation charged against operations under the plan for employees and advisors was $78,353 and $159,084 for the three months ended October 31, 2013 and 2012, respectively and $127,290 and $352,469 for the six months ended thereof. These costs are classified under management and administrative expense. | |||||||||||||||
The aggregate intrinsic value of options under the Plan vested and exercisable at October 31, 2013, was $207,125 based on the Company's closing price of $0.40 per common share at October 31, 2013. | |||||||||||||||
The following is a summary of the Company’s stock options outstanding and vested: | |||||||||||||||
Shares | Weighted Average Exercise Price | Expiration Date | |||||||||||||
Options issued for mining interests | 300,000 | $ 0.37 | April 11, 2019 through January 15, 2023 | ||||||||||||
Options issued for consulting services | 12,000 | 0.44 | October 31, 2013 through October 31, 2014 | ||||||||||||
Options issued under the 2011 Stock Option/Restricted Plan | 2,885,000 | 0.40 | May 30, 2021 through May 22, 2023 | ||||||||||||
Outstanding at October 31, 2013 | 3,197,000 | $ 0.40 | |||||||||||||
Total vested stock options | 2,783,975 | ||||||||||||||
The aggregate intrinsic value of all options vested and exercisable at October 31, 2013, was $238,224 based on the Company's closing price of $0.40 per common share at October 31, 2013. The Company's current policy is to issue new shares to satisfy option exercises. |
Note_9_Stockholders_Equity
Note 9 Stockholders Equity | 6 Months Ended |
Oct. 31, 2013 | |
Equity [Abstract] | ' |
Stockholders Equity | ' |
NOTE 9 – STOCKHOLDERS’ EQUITY | |
On October 4, 2013, the Company completed a private placement of its securities wherein it raised a total of $1,100,800 (the “Offering”). The Offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.25. Pursuant to the Offering, the Company issued 4,403,200 shares of its common stock and warrants to purchase and additional 2,201,600 shares of its common stock. Warrants issued pursuant to the Offering entitle the holders thereof to purchase shares of common stock for the price of $0.50 per share. The term of each warrant is for one year after its issuance date. | |
On October 31, 2013, the Company issued 20,625 shares of common stock in lieu of cash in consideration of fees for Board of Director meetings accrued through October 31, 2013. These shares were value at $8,250 or $0.40 per share which approximated the fair value of the shares at the date of issuance. | |
Note_2_Significant_Accounting_1
Note 2 Significant Accounting Policies (Policies) | 6 Months Ended | ||||
Oct. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Basis of Presentation | ' | ||||
Basis of Presentation | |||||
This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States. The Company has not produced any revenue from its principal business and is an exploration stage company as defined by the Accounting Standard Codification (ASC) Topic 915 “Accounting and Reporting by Development Stage Enterprises”. Until such interests are engaged in commercial production, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage. | |||||
Use of Estimates | ' | ||||
Use of Estimates | |||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements, and the reported amounts of expenses during the reporting period. Significant areas requiring the use of management assumptions and estimates relate to asset impairments and stock option valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Company’s reported financial position and results of operations. | |||||
Cash and cash equivalents | ' | ||||
Cash and cash equivalents | |||||
For the purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents. | |||||
Restricted cash | ' | ||||
Restricted cash | |||||
Restricted cash represents collateral for bonds held for exploration permits and is presented as other long-term assets in the balance sheet. | |||||
Fair Value Measures | ' | ||||
Fair Value Measures | |||||
ASC Topic 820 "Fair Value Measurements and Disclosures" ("ASC 820") requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | |||||
Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||
Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quote prices for similar assets or liabilities in active markets; quoted prices for identical assets in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||
Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||
Mining Interests and Mineral Exploration Expenditures | ' | ||||
Mining Interests and Mineral Exploration Expenditures | |||||
Exploration costs are expensed in the period in which they occur. The Company capitalizes costs for acquiring and leasing mining properties and expenses costs to maintain mineral rights as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mining interests are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. | |||||
Equipment | ' | ||||
Equipment | |||||
Equipment are stated at cost. Depreciation of equipment is calculated using the straight-line method over the estimated useful lives of the assets, which ranges from three to seven years. Maintenance and repairs are charged to operations as incurred. Significant improvements are capitalized and depreciated over the useful life of the assets. Gains or losses on disposition or retirement of property and equipment are recognized in operating expenses. | |||||
Reclamation and Remediation | ' | ||||
Reclamation and Remediation | |||||
The Company's operations are subject to standards for mine reclamation that have been established by various governmental agencies. In the period in which the Company incurs a contractual obligation for the retirement of tangible long-lived assets, the Company will record the fair value of an asset retirement obligation as a liability. A corresponding asset will also be recorded and depreciated over the life of the asset. After the initial measurement of an asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. To date, the Company has not incurred any contractual obligation requiring recording either a liability or associated asset. | |||||
Impaired Asset Policy | ' | ||||
Impaired Asset Policy | |||||
The Company periodically reviews its long-lived assets to determine if any events or changes in circumstances have transpired which indicate that the carrying value of its assets may not be recoverable, pursuant to guidance established in ASC Topic 360, "Accounting for the Impairment or Disposal of Long-lived Assets". The Company determines impairment by comparing the undiscounted net future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, the assets will be written down to fair value. | |||||
Stock-based Compensation | ' | ||||
Stock-based Compensation | |||||
The Company estimates the fair value of options to purchase common stock using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), employee forfeiture rate, the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of fair value of stock-based compensation. Options granted have a ten year maximum term and varying vesting periods as determined by the Board. The value of common stock awards is determined based on the closing price of the Company’s stock on the date of the award. | |||||
Loss Per Share | ' | ||||
Loss Per Share | |||||
Basic Earnings Per Share ("EPS") is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants. | |||||
The dilutive effect of outstanding securities for three and six months ended October 31, 2013 and 2012, would be as follows: | |||||
31-Oct-13 | 31-Oct-12 | ||||
Stock options | 3,197,000 | 2,532,000 | |||
Warrants | 3,929,548 | 6,811,793 | |||
Total Possible Dilution | 7,126,548 | 9,343,793 | |||
At October 31, 2013 and 2012, respectively, the effect of the Company's outstanding options and common stock equivalents would have been anti-dilutive. | |||||
Income Taxes | ' | ||||
Income Taxes | |||||
Deferred income tax liabilities or assets at the end of each period are determined using the tax rates expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized. | |||||
Reclassifications | ' | ||||
Reclassifications | |||||
Certain reclassifications have been made to the prior period financial statements in order to conform to the 2013 presentation. These reclassifications have no effect on net loss, total assets or accumulated deficit. |
Note_2_Significant_Accounting_2
Note 2 Significant Accounting Policies (Tables) | 6 Months Ended | ||||
Oct. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Dilutive Effect of outstanding securities | ' | ||||
31-Oct-13 | 31-Oct-12 | ||||
Stock options | 3,197,000 | 2,532,000 | |||
Warrants | 3,929,548 | 6,811,793 | |||
Total Possible Dilution | 7,126,548 | 9,343,793 |
Note_4_Prepaid_Expenses_Tables
Note 4 Prepaid Expenses (Tables) | 6 Months Ended | ||||
Oct. 31, 2013 | |||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||
Prepaid Expenses | ' | ||||
31-Oct-13 | 30-Apr-13 | ||||
Exploration expense | $ - | $ 41,849 | |||
Directors and officers liability insurance | 11,143 | 26,633 | |||
Total prepaid expenses | $ 11,143 | $ 68,482 |
Note_7_Warrants_Tables
Note 7 Warrants (Tables) | 6 Months Ended | ||||||
Oct. 31, 2013 | |||||||
Notes to Financial Statements | ' | ||||||
Stock Option obligations | ' | ||||||
Shares | Weighted Average Exercise Price | Expiration Date | |||||
Outstanding at April 30, 2012 | 7,690,000 | $ 0.16 | |||||
Issued - June 18, 2012 | 833,334 | 0.75 | 18-Jun-14 | ||||
Issued - January 18, 2013 | 894,614 | 0.6 | (a) | 18-Jan-15 | |||
Exercised | -7,593,233 | -0.15 | |||||
Expired | -96,767 | -1.33 | |||||
Outstanding at April 30, 2013 | 1,727,948 | $ 0.67 | |||||
Issued - October 4, 2013 | 2,201,600 | 0.5 | 4-Oct-14 | ||||
Exercised | - | ||||||
Expired | - | ||||||
Balance outstanding at October 31, 2013 | 3,929,548 | $ 0.58 | |||||
Note_3_Receivable_From_Sale_of1
Note 3 Receivable From Sale of Stock (Details Narrative) (USD $) | 6 Months Ended |
Oct. 31, 2013 | |
Other Liabilities Disclosure [Abstract] | ' |
Proceeds from exercise of warrants | $334,000 |
Proceeds from sale of stock | $60,000 |