Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 14, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Entity Registrant Name | 'Eastern Resources, Inc. | ' |
Entity Central Index Key | '0001429373 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 198,550,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets | ' | ' |
Cash and cash equivalents | $27,239 | $113,505 |
Accounts receivable other | ' | 1,008 |
Inventory, net | 886,977 | 886,977 |
Other current assets | 24,542 | ' |
Total current assets | 938,758 | 1,001,490 |
Non-current assets | ' | ' |
Buildings, equipment, and land, net | 5,494,293 | 5,573,565 |
Mine development | 5,102,217 | 5,102,217 |
Mining properties and mineral interests, net | 16,475,955 | 16,440,879 |
Deposits for reclamation obligations | 16,814,932 | 16,780,285 |
Total non-current assets | 43,887,397 | 43,896,946 |
Total assets | 44,826,155 | 44,898,436 |
Current liabilities | ' | ' |
Accounts payable | 1,486,571 | 1,425,073 |
Accounts payable - related party | 675,560 | 98,919 |
Accrued liabilities | 6,263,362 | 5,455,419 |
Promissory notes | 1,691,597 | 705,737 |
Convertible bridge loans | 1,800,000 | 1,900,000 |
Current portion of capital lease obligation | 45,039 | 94,729 |
Series A 8% bonds | 919,779 | 919,779 |
Refundable customer deposit, ore purchase agreement | 12,680,000 | 10,760,000 |
Common stock subscription deposit | 50,000 | ' |
Push-down redeemable obligation of Parent and its affiliate | 5,950,000 | 5,950,000 |
Push-down interest of Parent and its affiliate | 33,843,981 | 26,448,883 |
Push-down debt of Parent and its affiliate | 21,579,848 | 21,579,848 |
Total current liabilities | 86,985,737 | 75,338,387 |
Non-current liabilities | ' | ' |
Derivative warrant liability | 4,185 | 204,874 |
Reclamation liability | 26,023,994 | 24,640,321 |
Ore purchase derivative contract | 11,271,380 | 16,701,404 |
Total non-current liabilities | 37,299,559 | 41,546,599 |
Total liabilities | 124,285,296 | 116,884,986 |
Series A 12% convertible redeemable preferred stock, $0.001 par value 10,000,000 shares authorized, issued, and outstanding at September 30, 2013 and December 31, 2012 | 13,656,708 | 13,656,708 |
Series A convertible redeemable preferred stock accrued dividend | 10,700,000 | 5,300,000 |
Total convertible redeemable preferred stock | 24,356,708 | 18,956,708 |
Commitments and contingencies | ' | ' |
Shareholders' deficit | ' | ' |
Common stock $0.001 par value 300,000,000 authorized at September 30, 2013 and December 31, 2012, 198,550,000 were issued and outstanding at September 30, 2013 and at December 31, 2012 | 198,550 | 198,550 |
Additional paid-in capital | 6,196,318 | 3,357,564 |
Accumulated deficit | -110,210,717 | -94,499,372 |
Total Shareholders' deficit | -103,815,849 | -90,943,258 |
Total liabilities, convertible redeemable preferred stock and shareholders' deficit | $44,826,155 | $44,898,436 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Series A Convertible Redeemable Preferred stock, par value per share | $0.00 | $0.00 |
Series A Convertible Redeemable Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Series A Convertible Redeemable Preferred stock, shares issued | 10,000,000 | 10,000,000 |
Series A Convertible Redeemable Preferred stock, shares outstanding | 10,000,000 | 10,000,000 |
Common Stock, par value per share | $0.00 | $0.00 |
Common Stock, shares authorized | 300,000,000 | 300,000,000 |
Common Stock, shares issued | 198,550,000 | 198,550,000 |
Common Stock, shares outstanding | 198,550,000 | 198,550,000 |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
CONSOLIDATED STATEMENT OF OPERATIONS [Abstract] | ' | ' | ' | ' |
Metal sales | ' | ' | ' | ' |
Operating expenses | ' | ' | ' | ' |
General and administrative | 1,642,391 | 1,090,282 | 5,156,414 | 4,101,115 |
Accretion expense | 411,932 | 351,992 | 1,383,673 | 1,055,973 |
Mine care and maintenance | 207,740 | 285,517 | 673,633 | 684,641 |
Depreciation and amortization | 4,618 | ' | 13,855 | 2,082 |
Total operating expenses | 2,266,681 | 1,727,791 | 7,227,575 | 5,843,811 |
Loss from operations | -2,266,681 | -1,727,791 | -7,227,575 | -5,843,811 |
Other (expense) income | ' | ' | ' | ' |
Interest expense | -2,424,315 | -2,395,924 | -7,716,157 | -7,086,514 |
Interest income | 5,339 | 8,637 | 34,789 | 48,613 |
Loss on derivative warrant liability | ' | -204,874 | ' | -204,874 |
Change in fair value of derivative warrant liability | 59,146 | ' | 200,689 | ' |
Loss on ore purchase derivative | ' | -1,407,694 | -3,905,503 | -1,407,694 |
Change in fair value of ore purchase derivative contract | -3,900,105 | -2,095,776 | 9,335,527 | -2,507,840 |
Standstill agreement expense | ' | ' | -1,000,000 | ' |
Accretion of beneficial conversion featrure on convertible debt | ' | -521,981 | ' | -521,981 |
Amortization of debt issuance costs | ' | -568,491 | ' | -557,970 |
Loss on disposal of assets | ' | ' | -33,115 | ' |
Total other expense | -6,259,935 | -7,186,103 | -3,083,770 | -12,238,260 |
Net loss | -8,526,616 | -8,913,894 | -10,311,345 | -18,082,071 |
Preferred dividend | 1,800,000 | 1,750,000 | 5,400,000 | 3,500,000 |
Net loss available to common shareholders | ($10,326,616) | ($10,663,894) | ($15,711,345) | ($21,582,071) |
Earnings per share: | ' | ' | ' | ' |
Basic and diluted loss per share | ($0.05) | ($0.05) | ($0.08) | ($0.11) |
Weighted average number of common shares outstanding | 198,550,000 | 198,550,000 | 198,550,000 | 198,550,000 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities | ' | ' |
Net loss | ($10,311,345) | ($18,082,071) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ' | ' |
Depreciation and amortization | 13,855 | 2,082 |
Amortization of debt issuance costs | ' | 557,970 |
Standstill agreement | 1,000,000 | ' |
Accretion expense | 1,383,673 | 1,055,973 |
Loss on ore purchase derivative | 3,905,503 | 1,407,694 |
Change in fair value of ore purchase derivative contract | -9,335,527 | 2,507,840 |
Accretion of beneficial conversion of convertible debt | ' | 521,981 |
Loss on disposal of assets | 33,115 | ' |
Stock based compensation | 2,267,782 | 1,189,286 |
Stock options issued for corporate advisory services | 570,972 | 560,781 |
Derivative warrant liabilites | ' | 204,874 |
Change in fair value of warrant liability | -200,689 | ' |
Push-down interest of Parent and its affiliate | 7,395,098 | 5,647,558 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable other | 1,008 | -1,008 |
Inventory | ' | 25,699 |
Other current assets | -24,542 | -11,833 |
Accounts payable | 61,498 | 1,251,007 |
Accounts payable-related party | 576,641 | ' |
Accrued liabilities | 807,943 | 2,048,610 |
Refundable customer deposit, ore purchase agreement | 920,000 | 660,000 |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | 9,376,330 | 17,638,878 |
Net cash used in operating activities | -935,015 | -443,193 |
Cash flows from investing activities | ' | ' |
Purchase of building and equipment | -3,448 | -33,138 |
Additions to mine development | ' | -1,219,199 |
Additions to mining properties and mineral interests | -35,076 | -45,098 |
Change in deposits for reclamation obligation | -34,647 | 24,938 |
Net cash used in investing activities | -73,171 | -1,272,497 |
Cash flows from financing activities | ' | ' |
Proceeds from sale of common stock | ' | 380,000 |
Proceeds from common stock subscription agreement | 50,000 | ' |
Proceeds from bridge loans | ' | 1,900,000 |
Proceeds from promissory notes | 985,860 | 432,260 |
Payments on series A 8% bonds | ' | -480,000 |
Payments on bridge loans | -100,000 | ' |
Payments on capital lease obligations | -13,940 | -194,840 |
Payments of distributions to stockholders | ' | -100,000 |
Net cash provided by financing activities | 921,920 | 1,937,420 |
Net decrease in cash and cash equivalents | -86,266 | 221,730 |
Cash and cash equivalents - beginning of year | 113,505 | 358,125 |
Cash and cash equivalents - end of year | 27,239 | 579,855 |
Supplemental cash flow disclosures | ' | ' |
Cash paid for interest | 51,587 | 127,639 |
Non-cash financing and investing activities | ' | ' |
Depreciation expense capitalized to mine development | ' | 78,678 |
Cancellation of capital lease | -35,750 | ' |
Series A Convertible Redeemable Preferred stock dividend | $5,400,000 | $1,800,000 |
Basis_of_Presentation_and_Merg
Basis of Presentation and Merger | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation and Merger [Abstract] | ' |
Basis of Presentation and Merger | ' |
Basis of Presentation and Merger | |
These financial statements represent the consolidated financial statements of Eastern Resources, Inc., and its wholly owned subsidiaries, Elkhorn Goldfields, Inc. and Montana Tunnels, Inc. The term "ESRI" refers to Eastern Resources, Inc., before giving effect to the Merger (defined below), the term "MTMI" refers to Montana Tunnels Mining, Inc., a Delaware corporation, the term "EGI" refers to Elkhorn Goldfields, Inc., a Montana corporation, and the terms "Company," "we," "us," and "our" refer to Eastern Resources, Inc., and its wholly-owned subsidiaries, including MTMI and EGI, after giving effect to the Merger. | |
On April 6, 2012, pursuant to an agreement and plan of merger of the same date, EGI and MTMI, formerly each a wholly-owned subsidiary of Elkhorn Goldfields LLC, a Delaware limited liability company ("EGLLC" or "Parent"), merged with and into ESRI (the "Merger") and EGI and MTMI became our wholly owned subsidiaries. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the consolidated financial statements of the Company as of September 30, 2013. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the operating results for the full year. It is recommended that these consolidated financial statements be read in conjunction with the consolidated financial statements and related disclosures for the year ended December 31, 2012 filed with the Securities and Exchange Commission ("SEC") on April 16, 2013. | |
Description_of_Business
Description of Business | 9 Months Ended |
Sep. 30, 2013 | |
Description of Business [Abstract] | ' |
Description of Business | ' |
Note 1 - Description of Business | |
EGI and MTMI (collectively, "Elkhorn") were formed for the purpose of acquiring, holding, operating, selling, and otherwise dealing in assets of mining operations with gold and other metal reserves and exploration potential. Elkhorn's objective is to operate mines and expand its interests through acquisition and exploration. Elkhorn has one mineral property that has completed the permitting process. That property has developed the 650-foot underground access tunnel to reach the top of the ore body and will finish the process of installing required infrastructure to allow access to the lower levels of ore once sufficient funding is received. In addition, a second property has completed the permitting process, except for posting the required reclamation bonding. Lastly, Elkhorn has several mineralized targets in the exploration stage. The permitted or nearly permitted mines include Golden Dream Mine (formerly referred to as the Sourdough Mine) and Montana Tunnels Mine ("Montana Tunnels"), and the mineralized properties available to develop mine plans are East Butte, Gold Hill/Mount Heagan, and Carmody (collectively, the "Elkhorn Project"), and the expansion of the previously operated Diamond Hill Mine. All the mines and properties are located in Jefferson County, Montana, with the exception of the Diamond Hill Mine, which is in Broadwater County, Montana. Elkhorn maintains its principal executive office in Denver, Colorado. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Note 2 - Summary of Significant Accounting Policies | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The valuation policies are determined by the Chief Financial Officer and are approved by the Chief Executive Officer. Fair value measurements are discussed with the Company's Board of Directors, as deemed appropriate. The Company has consistently applied the valuation techniques discussed below in all periods presented. | |||||||||||||||||
The carrying amounts of financial instruments, including cash, accounts payable, and accrued liabilities, approximated fair value as of September 30, 2013 and December 31, 2012 because of the relatively short maturity of these instruments. | |||||||||||||||||
The Company applies the guidance to financial assets and liabilities measured at fair value on a recurring basis. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The financial and non-financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
The hierarchy is broken down into three levels based on the reliability of the inputs as follows: | |||||||||||||||||
Level 1: | Quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||
Level 2: | Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or | ||||||||||||||||
Level 3: | Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions. | ||||||||||||||||
The following assets are measured at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Ore purchase derivative contract | $ | - | $ | - | $ | (11,271,380 | ) | $ | (11,271,380 | ) | |||||||
Derivative warrant liability | $ | - | $ | - | $ | (4,185 | ) | $ | (4,185 | ) | |||||||
The following assets are measured at fair value on a recurring basis as of December 31, 2012: | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Ore purchase derivative contract | $ | - | $ | - | $ | (16,701,404 | ) | $ | (16,701,404 | ) | |||||||
Derivative warrant liability | $ | - | $ | - | $ | (204,874 | ) | $ | (204,874 | ) | |||||||
Ore Purchase Derivative Contract: Based on: (i) contract terms of the production of 41,481 ounces of gold; (ii) projected future gold prices garnered from GCJ2 Comb Commodity Futures as of September 30, 2013; and (iii) discount rate determined based on the observed weighted average cost capital of a group of publicly traded comparable companies using a discounted cash flow model. The model is most sensitive to the future price of gold and expected delivery of ore. | |||||||||||||||||
Derivative Warrant Liability: Based on: (i) stock price; (ii) volatility calculated on the average volatility of stock for three publicly traded companies determined to be in a similar industry and with the same market capitalization as the Company; and (iii) risk free rate for the expected term of the option is based on the United States Treasury yield curve in effect on September 30, 2013. | |||||||||||||||||
There were no changes to the valuation techniques used during the three and nine months ended September 30, 2013and 2012, respectively. | |||||||||||||||||
The following table presents information about significant unobservable inputs to the Company's Level 3 financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
Description | Fair Value | Valuation | Significant | Range of Inputs | |||||||||||||
Technique | Unobservable | ||||||||||||||||
Inputs | |||||||||||||||||
Ore purchase | $ | 11,271,380 | Discounted cash flow model | Production commencement Production period discount rate | June 2014, | ||||||||||||
derivative | 24 Months, | ||||||||||||||||
contract | 25% | ||||||||||||||||
Warrant liability | $ | 4,185 | Black-Scholes | Volatility | Approximate risk free rate: 1.20%; Remaining contract: 4 years; Volatility: 62% | ||||||||||||
Model | |||||||||||||||||
Future increases in the credit adjusted discount rate will result in a decline in the fair value of the ore derivative contracts. | |||||||||||||||||
Changes in the estimates of timing production of the ore further out into the future periods would also cause a change in the value of the ore derivative liability. | |||||||||||||||||
Changes in the estimated future price of gold would cause a change in the value of the ore derivative contract. | |||||||||||||||||
Changes in the stock price, volatility, and the approximate risk-free rate would cause a change the value of the warrant liability. | |||||||||||||||||
The change in fair value of derivative instrument contract included in the statement of operations was 9,335,527 and ($2,507,840) for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
The change in valuation of warrant liability was $200,689 and zero for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2013: | |||||||||||||||||
Embedded | Warrant | ||||||||||||||||
Derivative | Liability | ||||||||||||||||
Beginning balance - December 31, 2012 | $ | (16,701,404 | ) | $ | (204,874 | ) | |||||||||||
New contracts entered into | (3,905,503 | ) | - | ||||||||||||||
Total gains or losses | |||||||||||||||||
(realized/unrealized) | |||||||||||||||||
Included in earnings | 9,335,527 | 200,689 | |||||||||||||||
Transfers in and/or out of Level 3 | |||||||||||||||||
Ending balance - September 30, 2013 | $ | (11,271,380 | ) | $ | (4,185 | ) | |||||||||||
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the year ended December 31, 2012: | |||||||||||||||||
Embedded | Warrant | ||||||||||||||||
Derivative | Liability | ||||||||||||||||
Beginning balance - December 31, 2011 | $ | (18,818,945 | ) | $ | - | ||||||||||||
New contracts entered into | (1,510,661 | ) | (204,874 | ) | |||||||||||||
Total gains or losses | |||||||||||||||||
(realized/unrealized) | |||||||||||||||||
Included in earnings | 3,628,202 | - | |||||||||||||||
Transfers in and/or out of Level 3 | |||||||||||||||||
Ending balance - December 31, 2012 | $ | (16,701,404 | ) | $ | (204,874 | ) | |||||||||||
The embedded derivative for the period ended September 30, 2013 is summarized between related and non-related parties as follows: | |||||||||||||||||
Related party embedded derivative | $ | 9,929,974 | |||||||||||||||
Non-related party embedded derivative | 1,341,406 | ||||||||||||||||
Total embedded derivative | $ | 11,271,380 | |||||||||||||||
Managements_Plan
Management's Plan | 9 Months Ended |
Sep. 30, 2013 | |
Management's Plan [Abstract] | ' |
Management's Plan | ' |
Note 3 - Management's Plan | |
At September 30, 2013, the Company has not generated any revenues to fund operations. The continuation of the Company as a going concern is dependent upon the ability of the Company to meet financial requirements for mine development and raise additional capital, which will require the issuance of additional debt and/or equity securities. The Company is attempting to raise capital through gold streaming, whereby upfront cash payments are exchanged for a percentage of the future gold production by the Golden Dream Mine. All of the company's mining projects have been placed in care and maintenance until the Company secures additional financing. These factors raise substantial doubt as to the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accrued Liabilities [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Note 4-Accrued Liabilities | |||||||||
Accrued expenses consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property and mining taxes payable | $ | 3,464,568 | $ | 3,228,136 | |||||
Interest | 1,720,344 | 1,450,872 | |||||||
Environmental remediation | 377,500 | 380,000 | |||||||
Payroll and related expenses | 513,549 | 358,411 | |||||||
Professional services | 141,901 | - | |||||||
Other | 45,500 | 38,000 | |||||||
Total | $ | 6,263,362 | $ | 5,455,419 | |||||
Refundable_Customer_Deposit_Or
Refundable Customer Deposit, Ore Purchase Agreement | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Refundable Customer Deposit, Ore Purchase Agreement [Abstract] | ' | ||||||||
Refundable Customer Deposit, Ore Purchase Agreement | ' | ||||||||
Note 5 -Refundable Customer Deposit, Ore Purchase Agreement | |||||||||
During April, 2011 the Company entered into a Minerals Product Receivables Purchase Agreement (the "MPRPA"), with an affiliate of the Parent. In October, 2012, the MPRPA was amended to sell up to 50% of the first 160,000 ounces of gold produced from the Golden Dream Mine for up-front payments of $25,391,200. As of September 30, 2013, the Company has received $11,680,000 of up-front payments and is obligated to sell 50% of the first 38,451 ounces to the holders of the MPRPA. | |||||||||
In addition, as an inducement for the secured lender not to exercise their right of foreclosure through September 30, 2013, the Company entered into a standstill agreement extending $1,000,000 from the MPRPA and is obligated to give 50% of the first 3,030 ounces to the secured lender. Subsequent to September 30, 2013, the standstill agreement was extended to December 31, 2014. | |||||||||
The following is a reconciliation of the refundable customer deposits and related ounces under the MPRPA as of September 30, 2013: | |||||||||
Refundable | Ounces | ||||||||
customer deposits | |||||||||
31-Dec-11 | $ | 10,000,000 | 33,360 | ||||||
Additions | 760,000 | 2,303 | |||||||
Delivery | - | - | |||||||
31-Dec-12 | 10,760,000 | 35,663 | |||||||
Additions | 1,920,000 | 5,818 | |||||||
Delivery | - | - | |||||||
30-Sep-13 | $ | 12,680,000 | 41,481 | ||||||
MPRPA, as amended, requires the Company to pay all proceeds from 50% of the sales of gold in excess of the lesser of $500 per ounce or the latest COMEX spot gold price, if any, to the customers. Additionally, the customers may purchase 15% (prorated if the entire MPRPA is not fully subscribed) of the ounces produced by the mine after the mine has produced in excess of 250,000 aggregate ounces for a purchase price of the lesser of $600 per ounce or the latest COMEX spot gold price. The term of the MPRPA is through the closure of the Golden Dream Mine. Currently the Company estimates reserves at approximately 258,000 ounces of gold. | |||||||||
The MPRPA includes an embedded derivative, which is valued using a discounted cash flow model with the major inputs of: (i) a 25% discount rate, (ii) gold future pricing, (iii) measurement date with the receipt of payment, and (iv) and management's forecast to produce approximately ounces by May 2016. During the nine months ended September 30, 2013, the Company recognized $3,905,503 of loss on the ore purchase agreement. The customer deposit will be reduced by the Company with the delivery of the gold. The fair value of the embedded derivative fluctuates with changes in the price of gold and expected delivery of ore. | |||||||||
The up-front payments of $11,680,000, along with the standstill agreement of $1,000,000, have been recognized as refundable customer deposits of $12,680,000 at September 30, 2013. The refundable customer deposits are considered current due to the party's making the payments having the right, upon written notice, at their option to demand repayment of the up-front cash deposit, without interest, for any shortfall in delivered ounces and the uncertainty of the commencement of ore production and the price of gold. Subsequent to September 30, 2013, $25,000 of the up-front payments was refunded to an investor resulting in a reduction of deliverable ounces under the agreement to 41,405. | |||||||||
Notes_Payable
Notes Payable | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes Payable [Abstract] | ' | ||||||||
Notes Payable | ' | ||||||||
Note 6-Notes Payable | |||||||||
During July 2010, the Company entered into Series A 8% bonds for a total of $5,000,000, of which $1,235,500 was funded and $919,779 was outstanding as of September 30, 2013 and December 31, 2012. The bonds matured during July 2012 and are currently in default and due on demand. With the default, interest on the bonds accrues at 12%. The unpaid interest on the bonds shall be due and payable quarterly in arrears on the last day of each October, January, April, and July commencing in October 2010. The Company will make a bonus payment of $50,000 per bond upon maturity. | |||||||||
The holders each received five-year warrants to purchase 0.67 membership units of EGLLC per $50,000 bond at a purchase price of $37,500 per membership unit and on July 31, 2011 an additional five-year warrant to purchase 0.67 membership units of EGLLC per $50,000 bond at a purchase price of $37,500 per membership unit was issued. The warrants expire July 31, 2015. The warrants were valued using the Black-Scholes pricing model and expensed during 2010 and 2011, respectively. | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Series A 8% bonds | $ | 919,779 | $ | 919,779 | |||||
Less current portion | (919,779 | ) | (919,779 | ) | |||||
$ | - | $ | - | ||||||
Promissory Notes - Related Parties | |||||||||
During 2012 and 2013, the Company entered into a series of promissory notes with related parties for a total of $985,860 during 2013 and $577,260 during 2012. The notes mature on November 30, 2013 and accrue interest at a rate of 6%. The Company paid $371,523 on the notes during 2012. | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Promissory Notes | $ | 1,191,597 | $ | 205,737 | |||||
Less current portion | (1,191,597 | ) | (205,737 | ) | |||||
$ | - | $ | - | ||||||
Promissory Notes | |||||||||
During 2012, the Company entered into a promissory note with an un-related party for a total of $500,000. The note originally matured on March 31, 2013 and accrued interest at a rate of 6%. In March 2013, this note was extended to May 31, 2013 and the interest rate was amended to 8%. As of September 30, 2013, the loan is in default. | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Promissory Notes | $ | 500,000 | $ | 500,000 | |||||
Less current portion | (500,000 | ) | (500,000 | ) | |||||
$ | - | $ | - | ||||||
Related Party Convertible Bridge Loans | |||||||||
During February 2012, the Company entered into three convertible bridge loans with a related parties totaling $1,800,000 due in August 2012. The loans were unsecured and called for 12% annual interest on the outstanding unpaid principal. The bridge loans are considered in default and currently bear interest at the 14% default rate. | |||||||||
Unrelated Party Convertible Bridge Loans | |||||||||
During April 2012, the Company entered into a bridge loan with an unrelated party for $100,000, which was paid in full during March 2013. | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Convertible bridge loans principal amount - related party | $ | 1,800,000 | $ | 1,800,000 | |||||
Convertible bridge loans principal amount - unrelated party | - | 100,000 | |||||||
$ | 1,800,000 | $ | 1,900,000 | ||||||
PushDown_Debt_Interest_and_Red
Push-Down Debt, Interest, and Redemption Obligation of Parent and Its Affiliate | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Push-Down Debt, Interest, and Redemption Obligation of Parent and Its Affiliate [Abstract] | ' | ||||||||
Push-Down Debt, Interest, and Redemption Obligation of Parent and Its Affiliate | ' | ||||||||
Note 7 - Push-Down Debt, Interest, and Redemption Obligation of Parent and Its Affiliate | |||||||||
During May 2010, the Company entered into a pledge agreement with the Parent and an investor group. Through the agreement the Company's assets serve as collateral for multiple loans of the Parent to the investors group. The agreement states that all loans and redeemable interest are jointly and severally obligations of the Parent and the investor group may allocate payments at its discretion. Although the Company is not a maker or guarantor on the loans, the loans have been "pushed down" to the Company in the accompanying consolidated financial statements in accordance with Statement of Accounting Bulletin No 54, as all assets have been pledged as collateral and repayment is dependent upon the cash flows from the Company's operations. | |||||||||
$5,000,000 Series A Convertible notes were due in December 2007. During 2007, the notes were extended to December 2009. During May 2009, the accrued and unpaid interest was included in the revised notes. Included in the revision, the convertible notes accrue interest at 18% per annum, compounded quarterly, and are due in April 2015. Interest only payments are to be made quarterly. At the election of the holder, principal amounts of the notes are convertible into $50,000 per membership unit of the Parent. The Company's mining properties and equipment have been pledged as collateral to these notes. The balance of these notes was $5,791,701 at September 30, 2013 and December 31, 2012. | |||||||||
During 2007, an affiliate of the Parent entered into a loan for $8,050,000. The loan was due May 2009. During May 2009, the accrued and unpaid interest was included in the revised notes. Included in the revision, the loans accrue interest at 18% per annum, compounded quarterly, and are due April 2015. At the election of the holder, the principal amount of the loan can be exchanged for $13,416,666 of Series A Bonds of the Parent. The Company's mining properties and equipment have been pledged as collateral to this note. The balance of this note was $9,680,125 at September 30, 2013 and December 31, 2012. | |||||||||
During 2008, an affiliate of the Parent entered into a loan for $5,000,000. The loan was due January 2009. During May 2009, the accrued and unpaid interest was included in the revised notes. Included in the revision, the loans accrue interest at 18% per annum, compounded quarterly, and are due April 2015. At the election of the holder, the principal amount of the loan can be exchanged for shares of an investment of the Parent at $1.00 per share, exchanged for the affiliate's assets, or exchanged for bonds of an investment of the Parent at $1.00 principal for each $1.00 par amount of a bond. The Company's mining properties and equipment have been pledged as collateral to this note. The balance of this note was $6,108,022 at September 30, 2013 and December 31, 2012. | |||||||||
Redeemable obligation of Parent and its affiliate. | |||||||||
An affiliate of the Parent offered redeemable options to certain debt holders ("Optionee") to purchase membership units in an equity owner of the Parent. The affiliate as Optionor grants to each Optionee the option to put all or any portion of the membership units to the affiliate. The Company's mining properties and equipment have been pledged as collateral to the redeemable interest. The balance of this redeemable option was $5,950,000 at September 30, 2013 and December 31, 2012. | |||||||||
The following is a summary of the loans as of the nine months ended September 30, 2013 and year ended December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Total push-down debt of Parent and its affiliate | $ | 21,579,848 | $ | 21,579,848 | |||||
Push-down redeemable obligation of Parent and its affiliate | 5,950,000 | 5,950,000 | |||||||
Total push-down debt and redeemable obligation of Parent and its affiliate | 27,529,848 | 27,529,848 | |||||||
Push-down interest of the Parent and its affiliate | 33,843,981 | 26,448,883 | |||||||
Total combined push-down debt components | $ | 61,373,829 | $ | 53,978,731 | |||||
The Parent and its affiliate have not made the interest payments on the notes or redeemable obligation; thus, an event of default may be present. Because of the non-payment of interest, the Company has classified the debt and redeemable obligation as current. | |||||||||
Shareholders_Deficit
Shareholders' Deficit | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Shareholders' Deficit [Abstract] | ' | ||||||||||||||||||||||
Shareholders' Deficit | ' | ||||||||||||||||||||||
Note 8 - Shareholders' Deficit | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
As of September 30, 2013, the authorized share capital of the Company consisted of 300,000,000 shares of common stock with a par value of $0.001 per share. There were 198,550,000 shares of common stock issued and outstanding as of September 30, 2013. | |||||||||||||||||||||||
During May and June 2012, the Company completed a private placement for 150,000 and 230,000 units for $150,000 and $230,000, respectively. Each unit consisted of one share of common stock and a warrant, representing the right to purchase one-half share of common stock, exercisable for a period of five (5) years from issuance, at an exercise price of $1.50 per whole share. The shares of common stock contained in the units and underling the warrants carry mandatory registration rights. Subsequent to the private placement the investors with 65,000 units agreed to renounce all right, title and interest in and to the warrants contained in the private placement units. | |||||||||||||||||||||||
The Company has agreed to maintain the effectiveness of the registration statement through the earlier of second anniversary of the date the registration statement is declared effective by the SEC or until Rule 144 of the Securities Act is available to the holders to allow them to sell all of their registrable securities thereunder. The holders of any registrable securities removed from the registration statement as a result of any Rule 415 or other comments from the SEC shall have "piggyback" registration rights for the shares of common stock or common stock underlying such warrants with respect to any registration statement filed by us following the effectiveness of the registration statement which would permit the inclusion of these shares. As of September 30, 2013, the Company has accrued a $38,000 for potential penalties related to the registration of the shares from the private stock sale. | |||||||||||||||||||||||
During July 2013, the Company entered into a subscription agreement with a third party. The agreement is to purchase 200,000 units at $0.50 per unit for an aggregate of $100,000; each unit consists of one share of common stock and a warrant, representing the right to purchase one share of common stock, exercisable for a period of five (5) years from issuance, at an exercise price of $0.75 per share. The shares of common stock contained in the units and underling the warrants carry mandatory registration rights. The Company has received $50,000 of the total $100,000 as of September 30, 2013 and as such is recording the received cash as a deposit on common stock subscription agreement in the consolidated balance sheet until such time as full consideration is paid and common stock is issued. | |||||||||||||||||||||||
Convertible Redeemable Preferred Stock | |||||||||||||||||||||||
The authorized share capital of the Company includes 10,000,000 shares of Series A Convertible Redeemable Preferred Stock ("Preferred Stock"), issued April 6, 2012 with a par value of $0.001 per share, all 10,000,000 shares were outstanding at September 30, 2013. The holder of the Preferred Stock is entitled to receive, out of funds legally available the cumulative non-compounding preferential dividends at the rate of 12% of the stated value of $6.00 per share per year. No dividends may be declared or paid on the shares of common stock or any other capital stock of the Company so long as any shares of the Preferred Stock remain outstanding. As of September 30, 2013, no dividends have been declared on the Preferred Stock. However, the Company has accrued dividends in arrears totaling $10,700,000 to the benefit of the Preferred Stock shareholders. The Preferred Stock has been designated to pay off the push down obligation which has been collateralized by assets of the Company. As money is distributed to the holder of the Preferred Stock either as a dividend or in redemption, it must be used to pay the interest and principle on the push down obligations that are reflected in the accompanying financial statements. The holders of the Preferred Stock have the option to redeem the Preferred Stock six months from the date of issuance or the date that the Company produces 25,000 ounces of gold, at any time prior to the third anniversary of issuance out of legally available funds. Under Delaware law, the board of directors has the discretion to determine, in good faith, whether there are sufficient legally available funds to make redemption. A surplus alone does not constitute legally available funds; the board of directors must determine if the funds available are sufficient to cover the redemption without making the Company insolvent. The contingency related to redemption has not been met because the redemption of the Preferred Stock would result in the insolvency of the Company. The Preferred Stock was recorded as a deemed distribution at its estimated fair value of $13,656,708 based upon the initial redemption value less the debt at the date of issuance of the preferred stock. | |||||||||||||||||||||||
Initial redemption value of preferred stock | $ | 60,000,000 | |||||||||||||||||||||
Less: "push down" debt plus accrued interest equal to be paid from the proceeds of the preferred stock | (46,343,292 | ) | |||||||||||||||||||||
Net excess cash flow attributable to the preferred stock at the date of acquisition | $ | 13,656,708 | |||||||||||||||||||||
Stock Option Plan | |||||||||||||||||||||||
The Company's stockholders approved the 2012 Equity Incentive Plan (the "2012 Plan") on April 5, 2012 pursuant to which a total of 20,000,000 shares of common stock have been reserved for issuance to eligible employees, consultants, and directors of the Company. The 2012 Plan provides for awards of non-statutory stock options, incentive stock options, stock appreciation rights, performance share awards, and restrictive stock awards within the meaning of Section 422 of the IRC, as amended and stock purchase rights to purchase shares of the Company's common stock. | |||||||||||||||||||||||
The 2012 Plan is administered by the Board of Directors, which has the authority to select the individuals to whom awards will be granted and to determine whether and to what extent stock options and stock purchase rights are to be granted, the number of shares of common stock to be covered by each award, the vesting schedule of stock options, and all other terms and conditions of each award. Stock options have a maximum term of ten years. It is the Company's practice to grant options to employees with exercise prices equal to or greater than the estimated fair market value of its common stock. The 2012 Plan shall terminate within ten years. | |||||||||||||||||||||||
The fair value of each award is estimated on the date of grant and recognized as expense over the service period which is generally the vesting period. Stock option values are estimated using the Black Scholes option valuation model, which requires the input of subjective assumptions, including the expected term of the option award, expected stock price volatility, and expected dividends. These estimates involve inherent uncertainties and the application of management judgment. During the nine months ended September 30, 2013 the Company recorded stock based compensation expense of $2,267,782, associated with stock options. As of September 30, 2013, the Company has estimated $4,589,685 of future compensation costs related to the unvested portions of outstanding stock options which is expected to be recognized over the next three years. | |||||||||||||||||||||||
Stock based compensation related to common stock issued to a third party vendor, during 2012, in exchange for services was valued at $1,801,054, with no forfeiture rate, the stock options vest over one year. During the nine months ended September 30, 2013, the Company recorded $570,972, in consulting expense. As of September 30, 2013, the Company has estimated no future expense related to the unvested portions of outstanding stock options. | |||||||||||||||||||||||
Stock option activity for the year ended December 31, 2012 and the nine months ended September 30, 2013 was as follows: | |||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Stock | Average | ||||||||||||||||||||||
Options | Exercise Price | ||||||||||||||||||||||
Outstanding - December 31, 2011 | - | $ | - | ||||||||||||||||||||
Granted | 12,920,000 | 0.96 | |||||||||||||||||||||
Forfeited/canceled | (260,000 | ) | 1 | ||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||
Outstanding - December 31, 2012 | 12,660,000 | 0.96 | |||||||||||||||||||||
Granted | 30,000 | 1 | |||||||||||||||||||||
Forfeited/canceled | (96,667 | ) | 1 | ||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||
Outstanding - September 30, 2013 | 12,593,333 | $ | 0.96 | ||||||||||||||||||||
The following table presents the composition of options outstanding and exercisable: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Number | Price* | Life* | Number | Price* | ||||||||||||||||||
$ | 0.75 | 2,000,000 | $ | 0.75 | 8.57 | 2,000,000 | $ | 0.75 | |||||||||||||||
$ | 1 | 10,563,333 | 1 | 8.52 | 3,536,667 | 1 | |||||||||||||||||
$ | 1 | 30,000 | 1 | 9.59 | - | - | |||||||||||||||||
Total - September 30, 2013 | 12,593,333 | $ | 0.96 | 8.6 | 5,536,667 | $ | 0.91 | ||||||||||||||||
*Price and Life reflect the weighted average exercise price and weighted average remaining contractual life, respectively. | |||||||||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average weighted assumptions: | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Approximate risk-free rate | 0.97% | 0.89% - 1.42% | |||||||||||||||||||||
Average expected term | 6.5 years | 5.5 - 6.5 years | |||||||||||||||||||||
Dividend yield | -% | -% | |||||||||||||||||||||
Volatility | 80.13% | 91.33% - 92.33% | |||||||||||||||||||||
Estimated fair value of total options granted | $0.22 | $0.86 - $0.90 | |||||||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 9 - Related Party Transactions | |
A related party has funded $10,920,000 of the MPRPA which entitles them to 36,148 of the 41,481 ounces of gold to be sold in accordance to the MPRPA. | |
Upon the closing of the Merger, the Company entered into a management services agreement with Black Diamond Financial Group, LLC to provide certain management, financial and accounting services for $15,000 per month plus $200 per hour for each additional hour of service in excess of 125 hours to the Company. The management services agreement has an initial term of three years and may be extended thereafter for successive one-year terms. Management fee expense was $135,000 for the nine months ended September 30, 2013 and is included in general and administrative expenses | |
During February 2012, the Company entered into convertible bridge loans with related parties totaling $1,800,000 due in August 2012. Because of the non-payment under the terms of the bridge loans, the bridge loans are considered in default and accruing interest at the default interest rate of 14%. (Note 6) | |
During 2013 and 2012, the Company entered into a series of promissory notes with related parties for $985,860 and $577,260, respectively. The notes mature on November 30, 2013 and accrue interest at a rate of 6%. During the fourth quarter of 2012, promissory notes totaling $371,523 were paid. (Note 6) | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
Note 10 - Commitments and Contingencies | |
Environmental Matters | |
The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations so as to protect the public health and environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. | |
Estimated future reclamation costs are based principally on legal and regulatory requirements. At September 30, 2013 and December 31, 2012, $26,023,994 and $24,640,321, respectively, was accrued for reclamation costs relating to currently producing mineral properties in accordance with asset retirement obligation guidance. | |
On May 24, 2010, the Environmental Protection Agency ("EPA") issued an action memorandum which documented the determination that soil removal was necessary to mitigate threats posed by elevated levels of lead and arsenic in the soil located on property in close proximity to MTMI. The work of clean-up conducted by the EPA of the site commenced in June 2010 and was completed by August of the same year. During August 2010, the Company and the EPA entered into an access and compensation agreement which detailed the responsibilities of both the EPA and the Company with respect to the clean-up and disposal of contaminated soils from the Site. During November, 2011, the Company agreed to the EPA proposed amount of $377,500 that will be paid in 35 monthly installments of $2,500 commencing during September 2013 with a final balloon payment of $292,500 due in Aug 2016. | |
Property and Mining Taxes | |
The Company is not current with its 2012, 2011, 2010 and 2009 property and mining taxes. The total amount past due as of September 30, 2013 and December 31, 2012 is $3,464,568 and $3,228,136, respectively. | |
During June 2013, the Company entered into a Tax Payment Agreement with Jefferson County, Montana. The agreement outlined a quarterly payment schedule commencing in June 2013. The payment schedule estimates a three year payoff of delinquent property and mining taxes. | |
Payroll Taxes | |
The Company is not current with its 2012 and 2013 payroll taxes. The total amount past due as of September 30, 2013 is approximately $253,000. The Company is in the process of assessing the implications of the unpaid payroll taxes. | |
Standstill Agreement | |
A standstill agreement with the secured lenders of the push-down debt and redemption obligation of the Parent and its affiliate (Note 7) was executed in May 2013. The standstill agreement prevents the lenders from exercising foreclosure rights against the Company through September 30, 2013. In consideration of the standstill agreement, the Company extended $1,000,000 of the MPRPA (Note 5) to the lender entitling them to 3,030 ounces. As of September 30, 2013, this agreement had expired; subsequent to September 30, 2013 this agreement was extended to December 31, 2014. There was no additional consideration from the Company for the extension. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 11 - Subsequent Events | |
Subsequent to September 30, 2013, the Company entered into a series of promissory notes with related parties for a total of $230,500. The notes mature on November 30, 2013 and accrue interest at a rate of 6%. | |
On November 1, 2013, $25,000 of the up-front payments related to the MPRPA was refunded to an investor resulting in a reduction of 76 ounces to be payable under the MPRPA to 41,405 ounces. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The valuation policies are determined by the Chief Financial Officer and are approved by the Chief Executive Officer. Fair value measurements are discussed with the Company's Board of Directors, as deemed appropriate. The Company has consistently applied the valuation techniques discussed below in all periods presented. | |||||||||||||||||
The carrying amounts of financial instruments, including cash, accounts payable, and accrued liabilities, approximated fair value as of September 30, 2013 and December 31, 2012 because of the relatively short maturity of these instruments. | |||||||||||||||||
The Company applies the guidance to financial assets and liabilities measured at fair value on a recurring basis. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The financial and non-financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
The hierarchy is broken down into three levels based on the reliability of the inputs as follows: | |||||||||||||||||
Level 1: | Quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||
Level 2: | Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or | ||||||||||||||||
Level 3: | Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions. | ||||||||||||||||
The following assets are measured at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Ore purchase derivative contract | $ | - | $ | - | $ | (11,271,380 | ) | $ | (11,271,380 | ) | |||||||
Derivative warrant liability | $ | - | $ | - | $ | (4,185 | ) | $ | (4,185 | ) | |||||||
The following assets are measured at fair value on a recurring basis as of December 31, 2012: | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Ore purchase derivative contract | $ | - | $ | - | $ | (16,701,404 | ) | $ | (16,701,404 | ) | |||||||
Derivative warrant liability | $ | - | $ | - | $ | (204,874 | ) | $ | (204,874 | ) | |||||||
Ore Purchase Derivative Contract: Based on: (i) contract terms of the production of 41,481 ounces of gold; (ii) projected future gold prices garnered from GCJ2 Comb Commodity Futures as of September 30, 2013; and (iii) discount rate determined based on the observed weighted average cost capital of a group of publicly traded comparable companies using a discounted cash flow model. The model is most sensitive to the future price of gold and expected delivery of ore. | |||||||||||||||||
Derivative Warrant Liability: Based on: (i) stock price; (ii) volatility calculated on the average volatility of stock for three publicly traded companies determined to be in a similar industry and with the same market capitalization as the Company; and (iii) risk free rate for the expected term of the option is based on the United States Treasury yield curve in effect on September 30, 2013. | |||||||||||||||||
There were no changes to the valuation techniques used during the three and nine months ended September 30, 2013and 2012, respectively. | |||||||||||||||||
The following table presents information about significant unobservable inputs to the Company's Level 3 financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
Description | Fair Value | Valuation | Significant | Range of Inputs | |||||||||||||
Technique | Unobservable | ||||||||||||||||
Inputs | |||||||||||||||||
Ore purchase | $ | 11,271,380 | Discounted cash flow model | Production commencement Production period discount rate | June 2014, | ||||||||||||
derivative | 24 Months, | ||||||||||||||||
contract | 25% | ||||||||||||||||
Warrant liability | $ | 4,185 | Black-Scholes | Volatility | Approximate risk free rate: 1.20%; Remaining contract: 4 years; Volatility: 62% | ||||||||||||
Model | |||||||||||||||||
Future increases in the credit adjusted discount rate will result in a decline in the fair value of the ore derivative contracts. | |||||||||||||||||
Changes in the estimates of timing production of the ore further out into the future periods would also cause a change in the value of the ore derivative liability. | |||||||||||||||||
Changes in the estimated future price of gold would cause a change in the value of the ore derivative contract. | |||||||||||||||||
Changes in the stock price, volatility, and the approximate risk-free rate would cause a change the value of the warrant liability. | |||||||||||||||||
The change in fair value of derivative instrument contract included in the statement of operations was 9,335,527 and ($2,507,840) for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
The change in valuation of warrant liability was $200,689 and zero for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2013: | |||||||||||||||||
Embedded | Warrant | ||||||||||||||||
Derivative | Liability | ||||||||||||||||
Beginning balance - December 31, 2012 | $ | (16,701,404 | ) | $ | (204,874 | ) | |||||||||||
New contracts entered into | (3,905,503 | ) | - | ||||||||||||||
Total gains or losses | |||||||||||||||||
(realized/unrealized) | |||||||||||||||||
Included in earnings | 9,335,527 | 200,689 | |||||||||||||||
Transfers in and/or out of Level 3 | |||||||||||||||||
Ending balance - September 30, 2013 | $ | (11,271,380 | ) | $ | (4,185 | ) | |||||||||||
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the year ended December 31, 2012: | |||||||||||||||||
Embedded | Warrant | ||||||||||||||||
Derivative | Liability | ||||||||||||||||
Beginning balance - December 31, 2011 | $ | (18,818,945 | ) | $ | - | ||||||||||||
New contracts entered into | (1,510,661 | ) | (204,874 | ) | |||||||||||||
Total gains or losses | |||||||||||||||||
(realized/unrealized) | |||||||||||||||||
Included in earnings | 3,628,202 | - | |||||||||||||||
Transfers in and/or out of Level 3 | |||||||||||||||||
Ending balance - December 31, 2012 | $ | (16,701,404 | ) | $ | (204,874 | ) | |||||||||||
The embedded derivative for the period ended September 30, 2013 is summarized between related and non-related parties as follows: | |||||||||||||||||
Related party embedded derivative | $ | 9,929,974 | |||||||||||||||
Non-related party embedded derivative | 1,341,406 | ||||||||||||||||
Total embedded derivative | $ | 11,271,380 | |||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Assets Measured at Fair Value | ' | ||||||||||||||||
The following assets are measured at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Ore purchase derivative contract | $ | - | $ | - | $ | (11,271,380 | ) | $ | (11,271,380 | ) | |||||||
Derivative warrant liability | $ | - | $ | - | $ | (4,185 | ) | $ | (4,185 | ) | |||||||
The following assets are measured at fair value on a recurring basis as of December 31, 2012: | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Ore purchase derivative contract | $ | - | $ | - | $ | (16,701,404 | ) | $ | (16,701,404 | ) | |||||||
Derivative warrant liability | $ | - | $ | - | $ | (204,874 | ) | $ | (204,874 | ) | |||||||
Ore Purchase Derivative Contract: Based on: (i) contract terms of the production of 41,481 ounces of gold; (ii) projected future gold prices garnered from GCJ2 Comb Commodity Futures as of September 30, 2013; and (iii) discount rate determined based on the observed weighted average cost capital of a group of publicly traded comparable companies using a discounted cash flow model. The model is most sensitive to the future price of gold and expected delivery of ore. | |||||||||||||||||
Derivative Warrant Liability: Based on: (i) stock price; (ii) volatility calculated on the average volatility of stock for three publicly traded companies determined to be in a similar industry and with the same market capitalization as the Company; and (iii) risk free rate for the expected term of the option is based on the United States Treasury yield curve in effect on September 30, 2013. | |||||||||||||||||
Schedule of Information about Significant Unobservable Inputs | ' | ||||||||||||||||
The following table presents information about significant unobservable inputs to the Company's Level 3 financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
Description | Fair Value | Valuation | Significant | Range of Inputs | |||||||||||||
Technique | Unobservable | ||||||||||||||||
Inputs | |||||||||||||||||
Ore purchase | $ | 11,271,380 | Discounted cash flow model | Production commencement Production period discount rate | June 2014, | ||||||||||||
derivative | 24 Months, | ||||||||||||||||
contract | 25% | ||||||||||||||||
Warrant liability | $ | 4,185 | Black-Scholes | Volatility | Approximate risk free rate: 1.20%; Remaining contract: 4 years; Volatility: 62% | ||||||||||||
Model | |||||||||||||||||
Reconciliation of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | ' | ||||||||||||||||
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2013: | |||||||||||||||||
Embedded | Warrant | ||||||||||||||||
Derivative | Liability | ||||||||||||||||
Beginning balance - December 31, 2012 | $ | (16,701,404 | ) | $ | (204,874 | ) | |||||||||||
New contracts entered into | (3,905,503 | ) | - | ||||||||||||||
Total gains or losses | |||||||||||||||||
(realized/unrealized) | |||||||||||||||||
Included in earnings | 9,335,527 | 200,689 | |||||||||||||||
Transfers in and/or out of Level 3 | |||||||||||||||||
Ending balance - September 30, 2013 | $ | (11,271,380 | ) | $ | (4,185 | ) | |||||||||||
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the year ended December 31, 2012: | |||||||||||||||||
Embedded | Warrant | ||||||||||||||||
Derivative | Liability | ||||||||||||||||
Beginning balance - December 31, 2011 | $ | (18,818,945 | ) | $ | - | ||||||||||||
New contracts entered into | (1,510,661 | ) | (204,874 | ) | |||||||||||||
Total gains or losses | |||||||||||||||||
(realized/unrealized) | |||||||||||||||||
Included in earnings | 3,628,202 | - | |||||||||||||||
Transfers in and/or out of Level 3 | |||||||||||||||||
Ending balance - December 31, 2012 | $ | (16,701,404 | ) | $ | (204,874 | ) | |||||||||||
Schedule of Embedded Derivative | ' | ||||||||||||||||
The embedded derivative for the period ended September 30, 2013 is summarized between related and non-related parties as follows: | |||||||||||||||||
Related party embedded derivative | $ | 9,929,974 | |||||||||||||||
Non-related party embedded derivative | 1,341,406 | ||||||||||||||||
Total embedded derivative | $ | 11,271,380 | |||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accrued Liabilities [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities | ' | ||||||||
Accrued expenses consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property and mining taxes payable | $ | 3,464,568 | $ | 3,228,136 | |||||
Interest | 1,720,344 | 1,450,872 | |||||||
Environmental remediation | 377,500 | 380,000 | |||||||
Payroll and related expenses | 513,549 | 358,411 | |||||||
Professional services | 141,901 | - | |||||||
Other | 45,500 | 38,000 | |||||||
Total | $ | 6,263,362 | $ | 5,455,419 | |||||
Refundable_Customer_Deposit_Or1
Refundable Customer Deposit, Ore Purchase Agreement (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Refundable Customer Deposit, Ore Purchase Agreement [Abstract] | ' | ||||||||
Schedule of Customer Deposits | ' | ||||||||
The following is a reconciliation of the refundable customer deposits and related ounces under the MPRPA as of September 30, 2013: | |||||||||
Refundable | Ounces | ||||||||
customer deposits | |||||||||
31-Dec-11 | $ | 10,000,000 | 33,360 | ||||||
Additions | 760,000 | 2,303 | |||||||
Delivery | - | - | |||||||
31-Dec-12 | 10,760,000 | 35,663 | |||||||
Additions | 1,920,000 | 5,818 | |||||||
Delivery | - | - | |||||||
30-Sep-13 | $ | 12,680,000 | 41,481 | ||||||
Notes_Payable_Tables
Notes Payable (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Instrument [Line Items] | ' | ||||||||
Schedule of Convertible Bridge Loans | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Convertible bridge loans principal amount - related party | $ | 1,800,000 | $ | 1,800,000 | |||||
Convertible bridge loans principal amount - unrelated party | - | 100,000 | |||||||
$ | 1,800,000 | $ | 1,900,000 | ||||||
Series A 8% Bonds [Member] | ' | ||||||||
Debt Instrument [Line Items] | ' | ||||||||
Schedule of Debt Instruments | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Series A 8% bonds | $ | 919,779 | $ | 919,779 | |||||
Less current portion | (919,779 | ) | (919,779 | ) | |||||
$ | - | $ | - | ||||||
Related Party Notes [Member] | ' | ||||||||
Debt Instrument [Line Items] | ' | ||||||||
Schedule of Debt Instruments | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Promissory Notes | $ | 1,191,597 | $ | 205,737 | |||||
Less current portion | (1,191,597 | ) | (205,737 | ) | |||||
$ | - | $ | - | ||||||
Other Notes [Member] | ' | ||||||||
Debt Instrument [Line Items] | ' | ||||||||
Schedule of Debt Instruments | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Promissory Notes | $ | 500,000 | $ | 500,000 | |||||
Less current portion | (500,000 | ) | (500,000 | ) | |||||
$ | - | $ | - | ||||||
PushDown_Debt_Interest_and_Red1
Push-Down Debt, Interest, and Redemption Obligation of Parent and Its Affiliate (Tables) (Push Down Debt Obligation [Member]) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Push Down Debt Obligation [Member] | ' | ||||||||
Debt Instrument [Line Items] | ' | ||||||||
Schedule of Debt Instruments | ' | ||||||||
The following is a summary of the loans as of the nine months ended September 30, 2013 and year ended December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Total push-down debt of Parent and its affiliate | $ | 21,579,848 | $ | 21,579,848 | |||||
Push-down redeemable obligation of Parent and its affiliate | 5,950,000 | 5,950,000 | |||||||
Total push-down debt and redeemable obligation of Parent and its affiliate | 27,529,848 | 27,529,848 | |||||||
Push-down interest of the Parent and its affiliate | 33,843,981 | 26,448,883 | |||||||
Total combined push-down debt components | $ | 61,373,829 | $ | 53,978,731 | |||||
Shareholders_Deficit_Tables
Shareholders' Deficit (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Shareholders' Deficit [Abstract] | ' | ||||||||||||||||||||||
Schedule of Convertible Redeemable Preferred Stock | ' | ||||||||||||||||||||||
Initial redemption value of preferred stock | $ | 60,000,000 | |||||||||||||||||||||
Less: "push down" debt plus accrued interest equal to be paid from the proceeds of the preferred stock | (46,343,292 | ) | |||||||||||||||||||||
Net excess cash flow attributable to the preferred stock at the date of acquisition | $ | 13,656,708 | |||||||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||||||||
Stock option activity for the year ended December 31, 2012 and the nine months ended September 30, 2013 was as follows: | |||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Stock | Average | ||||||||||||||||||||||
Options | Exercise Price | ||||||||||||||||||||||
Outstanding - December 31, 2011 | - | $ | - | ||||||||||||||||||||
Granted | 12,920,000 | 0.96 | |||||||||||||||||||||
Forfeited/canceled | (260,000 | ) | 1 | ||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||
Outstanding - December 31, 2012 | 12,660,000 | 0.96 | |||||||||||||||||||||
Granted | 30,000 | 1 | |||||||||||||||||||||
Forfeited/canceled | (96,667 | ) | 1 | ||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||
Outstanding - September 30, 2013 | 12,593,333 | $ | 0.96 | ||||||||||||||||||||
Schedule of Stock Options Outstanding and Exercisable | ' | ||||||||||||||||||||||
The following table presents the composition of options outstanding and exercisable: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Number | Price* | Life* | Number | Price* | ||||||||||||||||||
$ | 0.75 | 2,000,000 | $ | 0.75 | 8.57 | 2,000,000 | $ | 0.75 | |||||||||||||||
$ | 1 | 10,563,333 | 1 | 8.52 | 3,536,667 | 1 | |||||||||||||||||
$ | 1 | 30,000 | 1 | 9.59 | - | - | |||||||||||||||||
Total - September 30, 2013 | 12,593,333 | $ | 0.96 | 8.6 | 5,536,667 | $ | 0.91 | ||||||||||||||||
*Price and Life reflect the weighted average exercise price and weighted average remaining contractual life, respectively. | |||||||||||||||||||||||
Schedule of Weighted Average Assumptions Used to Value Stock-based Awards | ' | ||||||||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average weighted assumptions: | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Approximate risk-free rate | 0.97% | 0.89% - 1.42% | |||||||||||||||||||||
Average expected term | 6.5 years | 5.5 - 6.5 years | |||||||||||||||||||||
Dividend yield | -% | -% | |||||||||||||||||||||
Volatility | 80.13% | 91.33% - 92.33% | |||||||||||||||||||||
Estimated fair value of total options granted | $0.22 | $0.86 - $0.90 | |||||||||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
ozt | ozt | |||
Fair Value of Financial Instruments | ' | ' | ' | ' |
Net gains (losses) included in statement of operations | ($3,900,105) | ($2,095,776) | $9,335,527 | ($2,507,840) |
Number of ounces of gold | 41,481 | ' | 41,481 | ' |
Change in fair value of warrant liability | ' | ' | $200,689 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Schedule of Assets Measured at Fair Value) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Ore purchase derivative contract | ($11,271,380) | ($16,701,404) |
Derivative warrant liability | -4,185 | -204,874 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Ore purchase derivative contract | ' | ' |
Derivative warrant liability | ' | ' |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Ore purchase derivative contract | ' | ' |
Derivative warrant liability | ' | ' |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Ore purchase derivative contract | -11,271,380 | -16,701,404 |
Derivative warrant liability | ($4,185) | ($204,874) |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Schedule of Valuation Techniques and Related Unobservable Inputs) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Derivative liability | $11,271,380 | $16,701,404 |
Discount rate | 25.00% | ' |
Ore Purchase Derivative Contract [Member] | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Derivative liability | 11,271,380 | ' |
Valuation Technique | ' | ' |
Discounted cash flow model | ||
Significant Unobservable Inputs | ' | ' |
Production commencement Production period discount rate | ||
Maturity date | 30-Jun-14 | ' |
Discount rate | 25.00% | ' |
Warrant [Member] | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Derivative liability | $4,185 | ' |
Valuation Technique | ' | ' |
Black-Scholes Model | ||
Significant Unobservable Inputs | ' | ' |
Volatility | ||
Volatility | 62.00% | ' |
Approximate risk free rate | 1.20% | ' |
Remaining contract | '4 years | ' |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Schedule of Changes in Level 3 Financial Instruments) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Embedded Derivative [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance - December 31, 2012 | ($16,701,404) | ($18,818,975) |
New contracts entered into | -3,905,503 | -1,510,661 |
Total gains or losses (realized/unrealized) Included in earnings | 9,335,527 | 3,628,202 |
Transfers in and/or out of Level 3 | ' | ' |
Ending balance - September 30, 2013 | -11,271,380 | -16,701,404 |
Warrant [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance - December 31, 2012 | -204,874 | ' |
New contracts entered into | ' | -204,874 |
Total gains or losses (realized/unrealized) Included in earnings | 200,689 | ' |
Transfers in and/or out of Level 3 | ' | ' |
Ending balance - September 30, 2013 | ($4,185) | ($204,874) |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Schedule of Embedded Derivatives) (Details) (USD $) | Sep. 30, 2013 |
Derivative [Line Items] | ' |
Embedded derivative | $11,271,380 |
Related Party Derivative [Member] | ' |
Derivative [Line Items] | ' |
Embedded derivative | 9,929,974 |
Unrelated Party Derivative [Member] | ' |
Derivative [Line Items] | ' |
Embedded derivative | $1,341,406 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accrued Liabilities [Abstract] | ' | ' |
Property and mining taxes payable | $3,464,568 | $3,228,136 |
Interest | 1,720,344 | 1,450,872 |
Environmental remediation | 377,500 | 380,000 |
Payroll and related expenses | 513,549 | 358,411 |
Professional services | 141,901 | ' |
Other | 45,500 | 38,000 |
Total | $6,263,362 | $5,455,419 |
Refundable_Customer_Deposit_Or2
Refundable Customer Deposit, Ore Purchase Agreement (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
ozt | Affiliated Entity [Member] | Scenario, Forecast [Member] | With Respect to 50% of the first 160,000 Ounces Sold [Member] | With Respect to 50% of the first 160,000 Ounces Sold [Member] | With Respect to Each Ounce of Gold Over 250,000 Ounces [Member] | Standstill Agreement [Member] | |||||
ozt | ozt | ozt | ozt | ozt | ozt | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ounces of gold production agreed to be sold | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 15.00% | 50.00% |
Ounces of gold produce | ' | ' | 160,000 | ' | ' | 36,148 | ' | ' | 38,451 | 250,000 | 3,030 |
Proceeds per ounce in excess of which company is required to pay to related party | ' | ' | ' | ' | ' | ' | ' | ' | $500 | $600 | ' |
Amount of gold covered in agreement | ' | ' | ' | ' | ' | ' | ' | 41,405 | 41,481 | ' | ' |
Estimated gold reserves | ' | ' | ' | ' | ' | ' | 258,000 | ' | ' | ' | ' |
Refundable customer deposit, ore purchase agreement | 12,680,000 | ' | 12,680,000 | ' | 10,760,000 | 10,920,000 | ' | ' | 11,680,000 | ' | ' |
Standstill agreement | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Gold discount rate | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on related party ore purchase derivative | ' | ' | -3,905,503 | ' | ' | ' | ' | ' | ' | ' | ' |
Refunded amount of up-front payments | ' | ' | ' | ' | ' | ' | ' | $25,000 | ' | ' | ' |
Refundable_Customer_Deposit_Or3
Refundable Customer Deposit, Ore Purchase Agreement (Schedule of Deposits) (Details) (Up-front Payment Arrangement [Member], USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
ozt | ozt | |
Up-front Payment Arrangement [Member] | ' | ' |
Up-front Payments | ' | ' |
Beginning balance | $10,760,000 | $10,000,000 |
Additions | 1,920,000 | 760,000 |
Delivery | ' | ' |
Ending balance | $12,680,000 | $10,760,000 |
Ounces | ' | ' |
Beginning balance | 35,663 | 33,360 |
Additions | 5,818 | 2,303 |
Delivery | ' | ' |
Ending balance | 41,481 | 35,663 |
Notes_Payable_Series_A_8_Bonds
Notes Payable (Series A 8% Bonds) (Details) (USD $) | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' | ' |
Debt, principal amount | ' | $1,800,000 | $1,900,000 |
Warrants Issued to Bond Holders [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Warrant issued period | ' | '5 years | ' |
Warrant issued expiration date | ' | 31-Jul-15 | ' |
Warrant issued, membership units to be purchased per $50,000 bond | ' | 0.67 | ' |
Warrant issued, purchase price per membership unit | ' | $37,500 | ' |
Series A 8% Bonds [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | ' | 919,779 | 919,779 |
Less current portion | ' | -919,779 | -919,779 |
Long-term debt, excluding current installments | ' | ' | ' |
Debt, principal amount | ' | 5,000,000 | ' |
Debt, funded amount | 1,235,500 | ' | ' |
Debt, maturity date | ' | 31-Jul-12 | ' |
Debt, interest rate | ' | 8.00% | ' |
Expected bonus payment per bond upon maturity | ' | $50,000 | ' |
Series A 8% Bonds [Member] | Upon Event of Default [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt, interest rate | ' | 12.00% | ' |
Notes_Payable_Promissory_Notes
Notes Payable (Promissory Notes - Related Parties) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' |
Debt, principal amount | $1,800,000 | $1,900,000 |
Promissory Notes - Related Parties [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Promissory Notes | 1,191,597 | 205,737 |
Less current portion | -1,191,597 | -205,737 |
Promissory notes - related parties, noncurrent | ' | ' |
Loan proceeds from related parties | 985,860 | 577,260 |
Debt, maturity date | 30-Nov-13 | ' |
Interest rate on note | 6.00% | ' |
Repayments of promissory notes - related parties | ' | $371,523 |
Notes_Payable_Promissory_Notes1
Notes Payable (Promissory Notes) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' |
Debt, principal amount | $1,800,000 | $1,900,000 |
Promissory Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 500,000 | 500,000 |
Less current portion | -500,000 | -500,000 |
Long-term debt, excluding current installments | ' | ' |
Debt, principal amount | $500,000 | ' |
Debt, maturity date | 31-May-13 | 31-Mar-13 |
Debt, interest rate | 8.00% | 6.00% |
Notes_Payable_Convertible_Brid
Notes Payable (Convertible Bridge Loans) (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 |
Related Party Loans [Member] | Related Party Loans [Member] | Unrelated Party Loans [Member] | Unrelated Party Loans [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | |||
Related Party Loans [Member] | Related Party Loans [Member] | Related Party Loans [Member] | Unrelated Party Loans [Member] | Unrelated Party Loans [Member] | Unrelated Party Loans [Member] | |||||||||
Upon Event of Default [Member] | ||||||||||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of unsecured bridge loans | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Debt, principal amount | $1,800,000 | $1,900,000 | $1,800,000 | $1,800,000 | ' | $100,000 | ' | ' | $1,800,000 | $1,800,000 | ' | ' | $100,000 | $100,000 |
Convertible bridge loans | $1,800,000 | $1,900,000 | ' | ' | ' | ' | $1,800,000 | $1,900,000 | ' | ' | ' | ' | ' | ' |
Debt, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | 14.00% | ' | ' | 12.00% |
Debt, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | 31-Aug-12 | ' | ' | ' | ' | ' |
Notes_Payable_Schedule_of_Conv
Notes Payable (Schedule of Convertible Bridge Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Convertible bridge loans principal amount | $1,800,000 | $1,900,000 |
Related Party Loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Convertible bridge loans principal amount | 1,800,000 | 1,800,000 |
Unrelated Party Loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Convertible bridge loans principal amount | ' | $100,000 |
PushDown_Debt_Interest_and_Red2
Push-Down Debt, Interest, and Redemption Obligation of Parent and Its Affiliate (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2007 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2007 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2008 | Dec. 31, 2012 |
Push Down Debt [Member] | Push Down Debt [Member] | Series A Convertible Notes [Member] | Series A Convertible Notes [Member] | Series A Convertible Notes [Member] | Loan One [Member] | Loan One [Member] | Loan One [Member] | Loan Two [Member] | Loan Two [Member] | Loan Two [Member] | |||
Push Down Debt [Member] | Push Down Debt [Member] | Push Down Debt [Member] | Push Down Debt [Member] | Push Down Debt [Member] | Push Down Debt [Member] | Push Down Debt [Member] | Push Down Debt [Member] | Push Down Debt [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, principal amount | $1,800,000 | $1,900,000 | ' | ' | $5,000,000 | ' | ' | $8,050,000 | ' | ' | $5,000,000 | ' | ' |
Debt, maturity date | ' | ' | ' | ' | 30-Apr-15 | 31-Dec-09 | ' | 30-Apr-15 | 31-May-09 | ' | 30-Apr-15 | 31-Jan-09 | ' |
Debt, interest rate | ' | ' | ' | ' | 18.00% | ' | ' | 18.00% | ' | ' | 18.00% | ' | ' |
Debt, value of Series A Bonds principal amount of loan can be exchanged | ' | ' | ' | ' | 50,000 | ' | ' | 13,416,666 | ' | ' | ' | ' | ' |
Debt exchange, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' |
Notes balance | ' | ' | 21,579,848 | 21,579,848 | 5,791,701 | ' | 5,791,701 | 9,680,125 | ' | 9,680,125 | 6,108,022 | ' | 6,108,022 |
Push-down redeemable obligation of Parent and its affiliate | $5,950,000 | $5,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PushDown_Debt_Interest_and_Red3
Push-Down Debt, Interest, and Redemption Obligation of Parent and Its Affiliate (Schedule of Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Push-down redeemable obligation of Parent and its affiliate | $5,950,000 | $5,950,000 |
Total push-down debt and redeemable obligation of Parent and its affiliate | 27,529,848 | 27,529,848 |
Push-down interest of the Parent and its affiliate | 33,843,981 | 26,448,883 |
Total combined push-down debt components | 61,373,829 | 53,978,731 |
Push Down Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Push-down debt of the Parent and its affiliate | $21,579,848 | $21,579,848 |
Shareholders_Deficit_Common_St
Shareholders' Deficit (Common Stock) (Details) (USD $) | 1 Months Ended | ||||
Jul. 31, 2013 | Jun. 30, 2012 | 31-May-12 | Sep. 30, 2013 | Dec. 31, 2012 | |
Shareholders' Deficit [Abstract] | ' | ' | ' | ' | ' |
Common Stock, shares authorized | ' | ' | ' | 300,000,000 | 300,000,000 |
Common Stock, par value per share | ' | ' | ' | $0.00 | $0.00 |
Common Stock, shares issued | ' | ' | ' | 198,550,000 | 198,550,000 |
Common Stock, shares outstanding | ' | ' | ' | 198,550,000 | 198,550,000 |
Private placement, units sold | 200,000 | 230,000 | 150,000 | ' | ' |
Private placement, price per unit | $0.50 | ' | ' | ' | ' |
Private placement, value of units sold | $200,000 | $230,000 | $150,000 | ' | ' |
Share of common stock in each unit | 1 | 1 | 1 | ' | ' |
Number of units which have renounced rights | ' | ' | ' | 65,000 | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Registration statement filing, accrued potential penalties | ' | ' | ' | $38,000 | ' |
Warrants Issued in Private Placement [Member] | ' | ' | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' |
Each warrant right to purchase share of common stock | 1 | 0.5 | 0.5 | ' | ' |
Warrant issued period | '5 years | '5 years | '5 years | ' | ' |
Warrant exercise price per share | $0.75 | $1.50 | $1.50 | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Private placement, registration statement filing period following final closing | ' | '90 days | '90 days | ' | ' |
Private placement, registration statement filing effective period | ' | '150 days | '150 days | ' | ' |
Registration statement filing, Penalties accrue and cumulate rate for each full period of 30 days | ' | 10.00% | 10.00% | ' | ' |
Shareholders_Deficit_Convertib
Shareholders' Deficit (Convertible Redeemable Preferred Stock) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
ozt | ||
Shareholders' Deficit [Abstract] | ' | ' |
Series A Convertible Redeemable Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Series A Convertible Redeemable Preferred stock, par value per share | $0.00 | $0.00 |
Series A Convertible Redeemable Preferred stock, shares outstanding | 10,000,000 | 10,000,000 |
Convertible Redeemable Preferred stock, preferential dividends | 12.00% | ' |
Convertible Redeemable Preferred stock, stated value per share per annum | $6 | ' |
Convertible Redeemable Preferred stock, accrued dividends in arrears | $10,700,000 | ' |
Convertible Redeemable Preferred stock, fair value | 13,656,708 | ' |
Quantity of gold required for redemption | 25,000 | ' |
Initial redemption value of preferred stock | 60,000,000 | ' |
Less: "push down" debt plus accrued interest equal to be paid from the proceeds of the preferred stock | -46,343,292 | ' |
Total convertible redeemable preferred stock net of push down obligations of parent | $13,656,708 | ' |
Shareholders_Deficit_Stock_Opt
Shareholders' Deficit (Stock Option Plan) (Details) (USD $) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
2012 Equity Incentive Plan [Member] | Options Granted for Third Party Services [Member] | Options Granted for Third Party Services [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Equity Incentive Plan, shares of common stock reserved for issuance | ' | ' | 20,000,000 | ' | ' |
Stock option, vesting period | ' | ' | ' | '1 year | ' |
Stock option, term | ' | ' | '10 years | ' | ' |
Stock based compensation expense | ' | ' | $2,267,782 | ' | ' |
Future compensation costs related to the unvested portions of outstanding stock options | ' | ' | 4,589,685 | ' | ' |
Stock based compensation related to common stock issued to a third party vendor | ' | ' | ' | 1,801,054 | ' |
Stock based compensation, common stock issued as consulting expense | ' | 204,874 | 570,972 | ' | ' |
Future compensation costs related to unvested portions of outstanding stock options | ' | ' | ' | ' | ' |
Shareholders_Deficit_Schedule_
Shareholders' Deficit (Schedule of Stock Option Activity) (Details) (Employee Stock Option [Member], USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Employee Stock Option [Member] | ' | ' |
Number of Shares | ' | ' |
Outstanding - beginning balance | 12,660,000 | ' |
Granted | 30,000 | 12,920,000 |
Forfeited/canceled | -96,667 | -260,000 |
Exercised | ' | ' |
Outstanding - ending balance | 12,593,333 | 12,660,000 |
Weighted Average Exercise Price | ' | ' |
Outstanding - beginning balance | $0.96 | ' |
Granted | $1 | $0.96 |
Forfeited/canceled | $1 | $1 |
Exercised | ' | ' |
Outstanding - ending balance | $0.96 | $0.96 |
Shareholders_Deficit_Schedule_1
Shareholders' Deficit (Schedule of Stock Options Outstanding and Exercisable) (Details) (Employee Stock Option [Member], USD $) | 9 Months Ended | |
Sep. 30, 2013 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Number | 12,593,333 | |
Price | $0.96 | [1] |
Life | '8 years 7 months 6 days | [1] |
Number | 5,536,667 | |
Price | $0.91 | [1] |
$ 0.75 [Member] | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices | $0.75 | |
Number | 2,000,000 | |
Price | $0.75 | [1] |
Life | '8 years 6 months 26 days | [1] |
Number | 2,000,000 | |
Price | $0.75 | [1] |
$ 1.00 [Member] | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices | $1 | |
Number | 10,563,333 | |
Price | $1 | [1] |
Life | '8 years 6 months 7 days | [1] |
Number | 3,536,667 | |
Price | $1 | [1] |
$ 1.00 [Member] | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices | $1 | |
Number | 30,000 | |
Price | $1 | [1] |
Life | '9 years 7 months 2 days | [1] |
Number | ' | |
Price | ' | [1] |
[1] | *Price and Life reflect the weighted average exercise price and weighted average remaining contractual life, respectively. |
Shareholders_Deficit_Schedule_2
Shareholders' Deficit (Schedule of Assumptions Used to Value Options) (Details) (Stock Options [Member], USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Approximate risk-free rate | 0.97% | ' |
Approximate risk-free rate, minimum | ' | 0.89% |
Approximate risk-free rate, maximum | ' | 1.42% |
Average expected term | '6 years 6 months | ' |
Dividend yield | 0.00% | 0.00% |
Volatility | 80.13% | ' |
Volatility, minimum | ' | 91.33% |
Volatility, maximum | ' | 92.33% |
Estimated fair value of total options granted | $0.22 | ' |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Average expected term | ' | '5 years 6 months |
Estimated fair value of total options granted | ' | 0.86 |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Average expected term | ' | '6 years 6 months |
Estimated fair value of total options granted | ' | 0.9 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
ozt | Related Party Loans [Member] | Related Party Loans [Member] | Promissory Notes - Related Parties [Member] | Promissory Notes - Related Parties [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | With Respect to 50% of the first 160,000 Ounces Sold [Member] | With Respect to 50% of the first 160,000 Ounces Sold [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Black Diamond [Member] | ||
Related Party Loans [Member] | Related Party Loans [Member] | Related Party Loans [Member] | ozt | ozt | ozt | Hourly Payment [Member] | Monthly Payment [Member] | ||||||||
Upon Event of Default [Member] | |||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management services agreement, initial term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years |
Management services agreement, extended term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year |
Management services agreement, payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200 | $15,000 | ' |
Minimum number of hours | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '125 hours |
Management fee expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135,000 |
Percentage of ounces of gold production agreed to be sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Ounces of gold produce | 160,000 | ' | ' | ' | ' | ' | ' | ' | ' | 38,451 | ' | 36,148 | ' | ' | ' |
Amount of gold covered in agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,481 | 41,405 | ' | ' | ' | ' |
Refundable customer deposit, ore purchase agreement | 12,680,000 | 10,760,000 | ' | ' | ' | ' | ' | ' | ' | 11,680,000 | ' | 10,920,000 | ' | ' | ' |
Promissory notes - related parties | ' | ' | ' | ' | 1,191,597 | 205,737 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan proceeds from related parties | ' | ' | ' | ' | 985,860 | 577,260 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, maturity date | ' | ' | ' | ' | 30-Nov-13 | ' | 31-Aug-12 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on note | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of promissory notes - related parties | ' | ' | ' | ' | ' | 371,523 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, principal amount | $1,800,000 | $1,900,000 | $1,800,000 | $1,800,000 | ' | ' | $1,800,000 | $1,800,000 | ' | ' | ' | ' | ' | ' | ' |
Debt, interest rate | ' | ' | ' | ' | ' | ' | 12.00% | ' | 14.00% | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
ozt | ||
Commitments and Contingencies [Abstract] | ' | ' |
Reclamation liability | $26,023,994 | $24,640,321 |
Settlement amount with EPA | 377,500 | ' |
Monthly payment amount to EPA | 2,500 | ' |
Balloon payment amount to EPA | 292,500 | ' |
Property taxes, total amount past due | 3,464,568 | 3,228,136 |
Payroll taxes past due | 253,000 | ' |
Standstill agreement amount | $1,000,000 | ' |
Standstill agreement, amount of gold covered | 3,030 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Nov. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
With Respect to 50% of the first 160,000 Ounces Sold [Member] | With Respect to 50% of the first 160,000 Ounces Sold [Member] | Promissory Notes - Related Parties [Member] | Subsequent Event [Member] | |||
ozt | ozt | Promissory Notes - Related Parties [Member] | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Debt, principal amount | $1,800,000 | $1,900,000 | ' | ' | ' | $230,500 |
Debt, maturity date | ' | ' | ' | ' | 30-Nov-13 | 30-Nov-13 |
Debt, interest rate | ' | ' | ' | ' | ' | 6.00% |
Refunded amount of up-front payments | ' | ' | $25,000 | ' | ' | ' |
Decrease in gold payable | ' | ' | -76 | ' | ' | ' |
Amount of gold covered in agreement | ' | ' | 41,405 | 41,481 | ' | ' |