California Mines (CLMC) 10-Q 19 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 19, 2013
Unpatented mining claims	'	'
Entity Registrant Name	'California Mines Corp.	'
Entity Central Index Key	'0001414030	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
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	'	142,440,000
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

BALANCE_SHEETS_Unaudited

BALANCE SHEETS (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
ASSETS	'	'
Cash	$61,019	$42,920
Total Current Assets	61,019	42,920
Mineral property	160,000	100,000
TOTAL ASSETS	221,019	142,920
LIABILITIES AND STOCKHOLDERS' DEFICIT	'	'
Accounts payable and accrued expenses	18,180	17,300
Accounts payable and accrued expenses - related parties	213,611	127,463
Advances - related party	1,860	1,860
Promissory note	125,000	125,000
Promissory note - related party	82,569	82,569
Convertible debt, net of discount	21,370	'
Derivative liability	152,564	'
Total Current Liabilities	615,154	354,192
Total Liabilities	615,154	354,192
STOCKHOLDERS' DEFICIT	'	'
Common stock, par value $0.001, 1,000,000,000 shares authorized and 142,440,000 shares issued and outstanding	142,440	142,440
Additional paid-in capital	-31,570	-31,570
Deficit accumulated during the exploration stage	-505,005	-322,142
Total Stockholders' Deficit	-394,135	-211,272
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$221,019	$142,920

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
STOCKHOLDERS' DEFICIT	'	'
Common stock, par value	$0.00	$0.00
Common stock, Authorized	1,000,000,000	1,000,000,000
Common stock, Issued	142,440,000	142,440,000
Common stock, outstanding	142,440,000	142,440,000

STATEMENTS_OF_OPERATIONS_Unaud

STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended		165 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Operating expenses	'	'	'	'	'
General and administrative	$15,075	$10,843	$50,717	$29,094	$181,719
Consulting fees	30,000	30,000	90,000	90,000	246,666
Mining Exploration	'	'	'	'	21,194
Loss from operations	-45,075	-40,843	-140,717	-119,094	-449,579
Interest expense	-29,150	-2,821	-39,582	-6,115	-52,862
Derivative expense	-2,564	'	-2,564	'	-2,564
Total other expense	-31,714	-2,821	-42,146	-6,115	-55,426
Net Loss	($76,789)	($43,664)	($182,863)	($125,209)	($505,005)
Net loss per share, basic and diluted	$0	$0	$0	$0	'
Weighted average number of shares of common stock outstanding	142,440,000	142,440,000	142,440,000	141,440,000	'

STATEMENTS_OF_CASH_FLOWS_Unaud

STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended		165 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'	'
Net loss	($182,863)	($125,209)	($505,005)
Adjustments to reconcile net loss to net cash used in operating activities	'	'	'
Issuance of common stock for services	'	'	1,870
Amortization of debt discount	21,370	'	21,370
Derivative expense	2,564	'	2,564
Changes in assets and liabilities	'	'	'
Accounts payable	880	-1,339	18,180
Accounts payable and accrued expenses - related parties	86,148	87,523	213,611
Net cash used in operating activities	-71,901	-39,025	-247,410
CASH FLOWS FROM INVESTING ACTIVITIES	'	'	'
Purchase of mineral property	-60,000	-50,000	-160,000
Net cash used in investing activities	-60,000	-50,000	-160,000
CASH FLOWS FROM FINANCING ACTIVITIES	'	'	'
Issuance of common stock for cash	'	25,000	109,000
Proceeds from advances - related party	'	'	33,471
Proceeds from convertible debt	150,000	'	150,000
Proceeds from promissory note	'	75,000	125,000
Proceeds from promissory note - related party	'	'	50,958
Net cash provided by financing activities	150,000	100,000	468,429
NET CHANGE IN CASH	18,099	10,975	61,019
CASH - BEGINNING OF PERIOD	42,920	8,753	'
CASH - END OF PERIOD	61,019	19,728	61,019
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'	'
Cash paid for interest	'	'	'
Cash paid for taxes	'	'	'
NON-CASH TRANSACTIONS:	'	'	'
Conversion of advances to promissory note - related party	'	'	$31,611

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 1 - Basis of Presentation	'
	The accompanying unaudited interim financial statements of California Mines Corp. (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended December 31, 2012 as reported in Form 10-K, have been omitted.
	On May 6, 2013, the Company’s board of directors approved an agreement and plan of merger to merge with and into our wholly-owned subsidiary California Mines Corp., a Nevada corporation, to effect a name change from Palmdale Executive Homes, Corp. to California Mines Corp. California Mines Corp. was formed on May 6, 2013 solely for the change of name.
	Derivative Instruments
	In connection with the sale of debt instruments, the debt instruments may contain embedded derivative instruments, such as embedded derivative features which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative instrument liability.
	The Company's derivative instrument liabilities are re-valued at the end of each reporting period, with changes in the fair value of the derivative liability recorded as charges or credits to income in the period in which the changes occur. For bifurcated embedded derivative features that are accounted for as derivative instrument liabilities, the Company estimates fair value using either quoted market prices of financial instruments with similar characteristics or other valuation techniques. The valuation techniques require assumptions related to the remaining term of the instruments and risk-free rates of return, our current common stock price and expected dividend yield, and the expected volatility of our common stock price over the life of the option. Because of the limited trading history for our common stock, the Company estimates the future volatility of its common stock price based on not only the history of its stock price but also the experience of other entities considered comparable to the Company.

Going_Concern

Going Concern	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 2 - Going Concern	'
	The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern.  This contemplates the realization of assets and the liquidation of liabilities in the normal course of business.  Currently, the Company does not have sufficient cash to meet its current commitments nor does it have assets or a source of revenue sufficient to cover its operation costs and allow it to continue as a going concern.  The Company will be dependent upon the raising of additional capital through placement of our common stock in order to implement its business plan, or merge with an operating company.  There can be no assurance that the Company will be successful in either situation which raises substantial doubt about the Company’s ability to continue as a going concern.

Mining_Lease_and_Option_to_Pur

Mining Lease and Option to Purchase Agreement	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 3 - Mining Lease and Option to Purchase Agreement	'
	Effective August 11, 2011, the Company entered into a Mining Lease and Option to Purchase Agreement (the “Property Agreement”) with the Ellers Family Revocable Trust of March 24, 2000 (the “Owner”). Under the terms of the Agreement, the Company leased a mining property consisting of 65 acres of real property interests and 13 unpatented mining claims situated in Tuolumne County, California for a term of three years.
	In accordance with the Agreement the Company is obligated to expend $150,000 per year of the lease developing the property, and pay annual advance royalty amounts of $50,000 for the first year (paid by an officer of the Company on behalf of the Company as of December 31, 2011), $50,000 in the second year (paid during the year ended December 31, 2012) and $60,000 in the final year, due by August 11, 2013 and paid on August 12, 2013.
	In addition, the Company must pay a net smelter return royalty of 10% during the term of the lease until expiry of the Agreement or the exercise of the option to purchase. The option to purchase may be exercised by the Company, in its sole discretion, at any time during the three year term of the Agreement. The option to purchase is exercisable for a 75% interest in the property with the Owner retaining a 25% interest as tenants in common. The purchase price of the 75% interest is $2,000,000 in cash plus the ongoing payment of a net smelter return royalty of 2.5% to the Owner.
	In connection with the Property Agreement, the Company entered into a Finder’s Fee Agreement with Tosca Capital Corp. (“Tosca”), a private British Columbia company, to formalize Tosca’s role in identifying a suitable mining property for the Company to lease or purchase, whereby the Company issued 11,000 shares of the Company’s common stock to Tosca on August 11, 2011. The grant date fair value of the common stock was $1,870 and was expensed during the period of issuance.
	Effective August 9, 2012 the Company and the Owner amended the Property Agreement whereby the Company’s obligation for the annual exploration expenditures of $150,000 are to be met by December 31, 2012, December 31, 2013 and August 11, 2014.
	Effective December 31, 2012, the Company and the Owner further amended the Property Agreement whereby the Company’s obligation for the annual exploration expenditures were met with its actual expenditures of $21,194 by December 31, 2012, and $200,000 and $150,000 are to be met by December 31, 2013 and December 31, 2014 respectively.

Promissory_Note

Promissory Note	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 4 - Promissory Note	'
	On August 25, 2012, the Company issued an unsecured promissory note for cash proceeds of $75,000 with a term of one year and simple annual interest rate of 8% repayable on August 25, 2013. Interest expense for the nine months ended September 30, 2013 was $4,500 and a total of $6,600 was accrued on the promissory note and included in accounts payable as of September 30, 2013. The note is currently in default.
	On November 26, 2012, the Company issued an unsecured promissory note for cash proceeds of $50,000 with a term of one year and simple annual interest rate of 8% repayable on November 26, 2013. Interest expense for the nine months ended September 30, 2013 was $3,000 and a total of $3,383 was accrued on the promissory note and included in accounts payable as of September 30, 2013.

Related_Party_Advance_and_Prom

Related Party Advance and Promissory Note	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 5 - Related Party Advance and Promissory Note	'
	On August 11, 2011, the Company issued an unsecured promissory note for the full balance of $82,569 owed to Mr. Medina. The promissory note of $82,569 has a term of one year and bears simple annual interest rate of 8%. On August 11, 2012, the Company defaulted on the promissory note with the interest rate increased to 13% under the term of the promissory note. Interest expense of $8,148 was incurred during the nine months ended September 30, 2013. As at September 30, 2013, total interest of $18,945 was accrued on the promissory note and is included in accounts payable and accrued expenses – related party. No demand has been made on this note through the date of filing.
	During the year ended December 31, 2011, Mr. Medina advanced an additional $1,860 to the Company, which was outstanding on September 30, 2013. The advance is non-interest bearing, unsecured and due on demand.

Convertible_Debt

Convertible Debt	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 6 - Convertible Debt	'
	On August 9, 2013, the Company issued an unsecured convertible note for principal amount of $150,000 with a term of one year and simple annual interest rate of 12%. The principal amount and accrued interest is convertible into the Company’s common shares at the conversion price of 75% of the average closing prices for the five trading days immediately preceding the conversion date.
	The convertible note was determined to include various embedded derivative liabilities. The derivative liabilities are the conversion feature and conversion price. At the date of issuance of the convertible note, derivative liabilities were measured at fair value using either quoted market prices of financial instruments with similar characteristics or other valuation techniques. These derivative liabilities will be marked-to-market each quarter with the change in fair value recorded in the statement of operations. The Company uses the effective interest method to record interest expense from the accretion of the debt discount.
	The fair value of the conversion feature was recorded as discount to the convertible debt and derivative liability. It was estimated using Black-Scholes option pricing model at $152,564 with the following assumptions: exercise price of $0.15, risk-free interest rate of 0.33%, dividend rate of 0%, expected life of 2 year and expected volatility of 534%.
	The Company recorded a net change in fair value of derivative expense of $2,564 for the nine months ended September 30, 2013.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 7 - Related Party Transactions	'
	On September 7, 2011 the Company entered into a consulting agreement with the Chief Operating Officer (“COO”) of the Company at consulting fee of $5,000 per month. During the nine months ended September 30, 2013, consulting fees of $45,000 were recorded and $97,333 was owed to the COO at September 30, 2013.
	On September 7, 2011 the Company entered into a consulting agreement with the Vice President of Geology (the “VP”) of the Company at consulting fee of $5,000 per month. During the nine months ended September 30, 2013, consulting fees of $45,000 were recorded and $97,333 was owed to the VP at September 30, 2013.

Share_Capital

Share Capital	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 8 - Share Capital	'
	On May 6, 2013, the Company’s board of directors approved a forty (40) for one (1) forward stock split of our authorized and our issued and outstanding shares of common stock. Upon effect of the forward stock split on June 14, 2013, the Company’s authorized capital was increased from 25,000,000 to 1,000,000,000 shares of common stock and correspondingly, the Company’s issued and outstanding shares of common stock was increased from 3,561,000 to 142,440,000 shares of common stock, all with a par value of $0.001.
	The forward stock split is presented retroactively in these financial statements.

Mining_Lease_and_Option_to_Pur1

Mining Lease and Option to Purchase Agreement (Details Narrative) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Mining Lease And Option To Purchase Agreement Details Narrative	'	'	'
Obligation to expend per year	$150,000	'	'
Annual advance royalty amounts for first year	'	'	50,000
Annual advance royalty amounts for second year	'	50,000	'
Exploration expense till Dec 31, 2012	150,000	'	'
Exploration expense till Dec 31, 2013	150,000	'	'
Exploration expense till Aug 11, 2014	150,000	'	'
Annual exploration expenditures 2012	'	21,194	'
Annual exploration expenditures 2013	'	200,000	'
Annual exploration expenditures 2014	'	$150,000	'

Promissory_Notes_Details_Narra

Promissory Notes (Details Narrative) (USD $)	3 Months Ended		9 Months Ended		165 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Interest expense	$29,150	$2,821	$39,582	$6,115	$52,862
On August 25, 2012	'	'	'	'	'
Interest expense	'	'	4,500	'	'
Accounts payable	'	'	6,600	'	'
On November 26, 2012	'	'	'	'	'
Interest expense	'	'	3,000	'	'
Accounts payable	'	'	$3,383	'	'

Related_Party_Advance_and_Prom1

Related Party Advance and Promissory Note (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013
Related Party Advance And Promissory Note Details Narrative	'
Interest expense	$8,148
Accrued on promissory note	18,945
Advanced to company Outstanding	$1,860

Convertible_Debt_Details_Narra

Convertible Debt (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013
Convertible Debt Details Narrative	'
Exercise price	$0.15
Risk-free interest rate	0.33%
Expected dividend rate	0.00%
Expected life	'2 years
Expected volatility	534.00%
Change in fair value derivative expense	$2,564

Related_Party_Transactions_Det

Related Party Transactions (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013
Chief Operating Officer [Member]	'
Consulting fees recorded	$45,000
Consulting fees owed to	97,333
Vice President of Geology [Member]	'
Consulting fees recorded	45,000
Consulting fees owed to	$97,333