Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Thunder Mountain Gold Inc | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000711034 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 33,907,549 | ' |
Entity Public Float | ' | ' | $1,794,969 |
Thunder_Mountain_Gold_Inc_An_E
Thunder Mountain Gold, Inc. (An Exploration Stage Company) Consolidated Balance Sheets December 31, 2013 and December 31, 2012 (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Current assets: | ' | ' | ||
Cash and cash equivalents | $35,882 | $166,505 | ||
Prepaid expenses and other assets | 12,717 | 53,320 | ||
Total current assets | 48,599 | 219,825 | ||
Equipment, net of accumulated depreciation | ' | 109 | ||
Investment in Owyhee Gold Trust LLC joint venture | 479,477 | 479,477 | ||
Total assets | 528,076 | 699,411 | ||
Current liabilities: | ' | ' | ||
Accounts payable and other accrued liabilities | 70,688 | 56,765 | ||
Related party notes payable | 25,000 | [1] | 0 | [1] |
Total current liabilities | 95,688 | 56,765 | ||
Long-term liabilities: | ' | ' | ||
Derivative warrant liabilities | ' | 508,012 | ||
Total liabilities | 95,688 | 564,777 | ||
Commitments and contingencies | 0 | [2] | 0 | [2] |
Stockholders' equity: | ' | ' | ||
Preferred stock; $0.001 par value, 5,000,000 shares authorized; no shares issued or outstanding | 0 | 0 | ||
Common stock; $0.001 par value; 200,000,000 shares authorized; 31,467,549 and 30,167,549 shares issued and outstanding, respectively | 31,468 | 30,168 | ||
Additional paid-in capital | 3,429,279 | 3,268,616 | ||
Less: 11,700 shares of treasury stock, at cost | -24,200 | -24,200 | ||
Deficit accumulated prior to 1991 | -212,793 | -212,793 | ||
Accumulated deficit during the exploration stage | -2,791,366 | -2,927,157 | ||
Total stockholders' equity | 432,388 | 134,634 | ||
Total liabilities and stockholders' equity | $528,076 | $699,411 | ||
[1] | Note 5 | |||
[2] | Note 2 |
Statement_of_Financial_Positio
Statement of Financial Position - Parenthetical (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of financial position | ' | ' |
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 31,467,549 | 30,167,549 |
Common Stock, Shares Outstanding | 31,467,549 | 30,167,549 |
Treasury Stock, Shares Outstanding | 11,700 | 11,700 |
Thunder_Mountain_Gold_Inc_An_E1
Thunder Mountain Gold, Inc. (An Exploration Stage Company) Consolidated Statements of Operations and Comprehensive Income (Loss) For the years ended December 31, 2013 and 2012 and for the period of Exploration Stage 1991 through December 31, 2013 (USD $) | 12 Months Ended | 276 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Revenue: | ' | ' | ' |
Royalties, net | ' | ' | $328,500 |
Joint venture management fee income | 53,203 | 60,150 | 113,353 |
Gain on sale of property and mining claims | ' | ' | 2,576,112 |
Total revenue | 53,203 | 60,150 | 3,017,965 |
Expenses: | ' | ' | ' |
Exploration expenses | 65,024 | 138,491 | 2,202,400 |
Legal and accounting | 91,942 | 211,363 | 1,220,562 |
Management and administrative | 184,148 | 266,175 | 3,406,616 |
Directors' fees and professional services | 89,038 | ' | 1,012,093 |
Gain on sale of equipment | -15,000 | -2,815 | -17,815 |
Depreciation | 109 | 8,557 | 145,658 |
Total expenses | 415,261 | 621,771 | 7,969,514 |
Other income (expense): | ' | ' | ' |
Interest and dividend income | 762 | 10 | 284,752 |
Interest expense | -10,925 | -153,359 | -434,975 |
Gain on change in fair value of derivative warrant liability | 508,012 | 2,881 | 1,803,277 |
Loss on common stock and warrants | ' | ' | -271,587 |
Gain on change in fair value of conversion option liability | ' | 33,232 | 108,032 |
Financing expense | ' | ' | -17,945 |
Gain on Debt forgiveness | ' | 1,000,000 | 1,000,000 |
Gain on sale of securities | ' | ' | 166,116 |
Impairment of investments | ' | ' | -52,299 |
Total other income (expense) | 497,849 | 882,764 | 2,585,371 |
Net income (loss) before income taxes | 135,791 | 321,143 | -2,366,176 |
Provision for income taxes | ' | ' | -151,496 |
Net income (loss) | 135,791 | 321,143 | -2,517,672 |
Treasury stock cancelled | ' | ' | -273,694 |
Comprehensive income (loss) | $135,791 | $321,143 | ($2,791,366) |
Net income (loss) per common share-basic and diluted | $0 | $0.01 | ($0.14) |
Weighted average common shares outstanding-basic and diluted | 30,673,690 | 29,950,658 | 20,460,975 |
Thunder_Mountain_Gold_Inc_An_E2
Thunder Mountain Gold, Inc. (An Exploration Stage Company) Consolidated Statements of Changes in Stockholders' Equity (Deficit)For the years ended December 31, 2013 and 2012, and for the period of Exploration Stage 1991 through December 31, 2013 (USD $) | Common Stock Shares | Common Stock Amount | Additional Paid-In Capital | Treasury Stock | Retained Earnings (Deficit) | Beneficial conversion feature on related party note payable | Total | |
Beginning balance, value at Dec. 31, 2009 | ' | $18,584 | $2,115,523 | ($24,200) | ($212,793) | ($1,298,380) | $598,734 | |
Beginning balance, shares at Dec. 31, 2009 | 18,583,469 | ' | ' | ' | ' | ' | ' | |
Stock and warrants issued for private placement | ' | 6,130 | 995,737 | ' | ' | ' | 1,001,867 | |
Stock and warrants issued for private placement. shares | 6,130,271 | ' | ' | ' | ' | ' | ' | |
Allocation to warrant liability | ' | ' | -995,737 | ' | ' | ' | -995,737 | |
Stock and warrants issued for private placement other | ' | 1,250 | 248,750 | ' | ' | ' | 250,000 | |
Stock and warrants issued for private placement other, shares | 1,250,000 | ' | ' | ' | ' | ' | ' | |
Allocation to warrant liability. other | ' | ' | -145,316 | ' | ' | ' | -145,316 | |
Stock issued for services | ' | 500 | 110,500 | ' | ' | ' | 111,000 | |
Stock issued for services, shares | 500,000 | ' | ' | ' | ' | ' | ' | |
Stock issued to directors | ' | 450 | 76,050 | ' | ' | ' | 76,500 | |
Stock issued to directors, shares | 450,000 | ' | ' | ' | ' | ' | ' | |
Stock issued for deferred compensation | 78,000 | 78 | 20,922 | ' | ' | ' | 21,000 | |
Warrants issued for deferred compensation | ' | ' | -16,941 | ' | ' | ' | -16,941 | |
Stock issued for warrants exercised | ' | 10 | 490 | ' | ' | ' | 500 | |
Stock issued for warrants exercised, shares | 10,000 | ' | ' | ' | ' | ' | ' | |
Beneficial conversion feature on related party note payable | ' | ' | 42,666 | ' | ' | ' | 42,666 | |
Net income (loss) | ' | ' | ' | ' | ' | -1,651,522 | -1,651,522 | |
Ending balance, value at Dec. 31, 2010 | ' | 27,002 | 2,452,644 | -24,200 | -212,793 | -2,949,902 | -707,249 | |
Ending balance, shares at Dec. 31, 2010 | 27,001,740 | ' | ' | ' | ' | ' | ' | |
Stock issued for options exercised | ' | 128 | -128 | ' | ' | ' | ' | |
Stock issued for options exercised, shares | 128,309 | ' | ' | ' | ' | ' | ' | |
Stock options issued for services | ' | ' | 566,695 | ' | ' | ' | 566,695 | |
Stock and warrants issued for private placement | ' | 1,200 | 184,980 | ' | ' | ' | 186,180 | |
Stock and warrants issued for private placement. shares | 1,200,000 | ' | ' | ' | ' | ' | ' | |
Allocation to warrant liability | [1] | ' | ' | -184,980 | ' | ' | ' | -184,980 |
Stock and warrants issued for private placement other | ' | 150 | 29,843 | ' | ' | ' | 29,993 | |
Stock and warrants issued for private placement other, shares | 150,000 | ' | ' | ' | ' | ' | ' | |
Stock issued for services | ' | 238 | 46,012 | ' | ' | ' | 46,250 | |
Stock issued for services, shares | 237,500 | ' | ' | ' | ' | ' | ' | |
Net income (loss) | ' | ' | ' | ' | ' | -298,398 | -298,398 | |
Ending balance, value at Dec. 31, 2011 | ' | 28,718 | 3,095,066 | -24,200 | -212,793 | -3,248,300 | -361,509 | |
Ending balance, shares at Dec. 31, 2011 | 28,717,549 | ' | ' | ' | ' | ' | ' | |
Conversion option liability eliminated | ' | ' | 15,000 | ' | ' | ' | 15,000 | |
Stock and warrants issued for private placement | ' | 1,350 | 148,650 | ' | ' | ' | 150,000 | |
Stock and warrants issued for private placement. shares | 1,350,000 | ' | ' | ' | ' | ' | ' | |
Stock issued for services | ' | 100 | 9,900 | ' | ' | ' | 10,000 | |
Stock issued for services, shares | 100,000 | ' | ' | ' | ' | ' | ' | |
Net income (loss) | ' | ' | ' | ' | ' | 321,143 | 321,143 | |
Ending balance, value at Dec. 31, 2012 | ' | 30,168 | 3,268,616 | -24,200 | -212,793 | -2,927,157 | 134,634 | |
Ending balance, shares at Dec. 31, 2012 | 30,167,549 | ' | ' | ' | ' | ' | ' | |
Conversion option liability eliminated | ' | ' | 9,425 | ' | ' | ' | 9,425 | |
Stock options issued for services | ' | ' | 89,038 | ' | ' | ' | 89,038 | |
Stock and warrants issued for convertible debt | ' | 400 | 19,600 | ' | ' | ' | 20,000 | |
Stock and warrants issued for convertible debt, shares | 400,000 | ' | ' | ' | ' | ' | ' | |
Stock and warrants issued for private placement | ' | 900 | 42,600 | ' | ' | ' | 43,500 | |
Stock and warrants issued for private placement. shares | 900,000 | ' | ' | ' | ' | ' | ' | |
Net income (loss) | ' | ' | ' | ' | ' | 135,791 | 135,791 | |
Ending balance, value at Dec. 31, 2013 | ' | $31,468 | $3,429,279 | ($24,200) | ($212,793) | ($2,791,366) | $432,388 | |
Ending balance, shares at Dec. 31, 2013 | 31,467,549 | ' | ' | ' | ' | ' | ' | |
[1] | Note 4 |
Thunder_Mountain_Gold_Inc_An_E3
Thunder Mountain Gold, Inc. (An Exploration Stage Company) Consolidated Statements of Cash Flows For the years ended December 31, 2013 and 2012 and for the period of Exploration Stage 1991 through December 31, 2013 (USD $) | 12 Months Ended | 276 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $135,791 | $321,143 | ($2,517,672) |
Adjustments to reconcile net income (loss) to net cash used by operating activities: | ' | ' | ' |
Depreciation and depletion | 109 | 8,557 | 145,658 |
Gain on sale of equipment | -15,000 | -2,815 | -17,815 |
Stock-based compensation | 89,038 | 10,000 | 980,804 |
Adjustment for anti-dilution provisions | ' | ' | 86,084 |
Conversion option liability eliminated | 9,425 | -15,000 | -5,575 |
Debt forgiveness | ' | -1,000,000 | -1,000,000 |
Directors' fees prepaid with common stock | ' | ' | 53,400 |
Amortization of deferred financing costs | ' | 138,370 | 231,015 |
Amortization of notes payable discounts | ' | 20,214 | 120,086 |
Compensation expense for stock issued | ' | ' | 76,500 |
Gain on sale of mining claims and other assets | ' | ' | -2,736,553 |
Adjustment for impairment of investments | ' | ' | 52,335 |
Gain on change in fair value of derivative warrant liability | -508,012 | -2,881 | -1,803,277 |
Loss on common stock and warrants | ' | ' | 271,587 |
Gain on change in fair value of conversion option liability | ' | -33,232 | -108,032 |
Financing expense from conversion option | ' | ' | 17,945 |
Change in: | ' | ' | ' |
Prepaid expenses and other assets | 40,603 | -32,931 | -12,717 |
Accounts payable and other liabilities | 13,923 | -219,104 | 77,121 |
Receivables | ' | ' | 124,955 |
Net cash used by operating activities | -234,123 | -807,678 | -6,040,651 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds from sale of property and mining claims | ' | ' | 5,500,000 |
Purchase of investments | ' | ' | -354,530 |
Purchase of mining claims and leaseholds | ' | -35,900 | -3,403,365 |
Purchase of equipment | ' | ' | -168,577 |
Proceeds from sale of investments | ' | ' | 642,645 |
Proceeds from sale of equipment | 5,000 | 5,000 | 59,310 |
Net cash (used) provided by investing activities | 5,000 | -30,900 | 2,275,483 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from sale of common stock and warrants, net of offering costs | 43,500 | 150,000 | 2,443,906 |
Proceeds from exercise of stock options and warrants | ' | ' | 508,600 |
Acquisition of treasury stock | ' | ' | -376,755 |
Borrowing on related party notes payable | 35,000 | 5,000 | 611,500 |
Payments on related party notes payable | ' | -150,000 | -572,000 |
Borrowing on convertible notes payable | 20,000 | 1,000,000 | 1,070,000 |
Payments on notes payable | ' | ' | -50,000 |
Net cash provided by financing activities | 98,500 | 1,005,000 | 3,635,251 |
Net increase (decrease) in cash and cash equivalents | -130,623 | 166,422 | -129,917 |
Cash and cash equivalents, beginning of year | 166,505 | 83 | 165,799 |
Cash and cash equivalents, end of year | 35,882 | 166,505 | 35,882 |
Cash paid for interest | ' | 10,992 | 27,046 |
Cash paid for income taxes | ' | ' | 503,514 |
Non-cash investing and financing activities: | ' | ' | ' |
Stock issued to acquire equipment from related party | ' | ' | 11,850 |
Stock issued for mining contract | ' | ' | 50,000 |
Stock issued for payment of accounts payable | ' | ' | 29,250 |
Stock issued for payments on related party and convertible note payable | 20,000 | ' | 24,500 |
Fair value of warrants issued in private placement classified as liabilities | ' | ' | 1,795,587 |
Note proceeds allocated to conversion option at inception | ' | ' | 123,031 |
Stock issued for deferred compensation | ' | ' | 21,000 |
Beneficial conversion feature on convertible note payable | 9,425 | ' | 384,425 |
Mineral properties transferred to investment | ' | 479,477 | 479,477 |
Equipment exchanged for payment on related party note payable | $10,000 | ' | $10,000 |
1_Summary_of_Significant_Accou
1. Summary of Significant Accounting Policies and Business Operations | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Notes | ' | |||||
1. Summary of Significant Accounting Policies and Business Operations | ' | |||||
1. Summary of Significant Accounting Policies and Business Operations | ||||||
Business Operations | ||||||
Thunder Mountain Gold, Inc. (“Thunder Mountain” or “the Company”) was originally incorporated under the laws of the State of Idaho on November 9, 1935, under the name of Montgomery Mines, Inc. In April 1978, the Montgomery Mines Corporation was obtained by a group of the Thunder Mountain property holders and changed its name to Thunder Mountain Gold, Inc., with the primary goal to further develop their holdings in the Thunder Mountain Mining District, located in Valley County, Idaho. Thunder Mountain Gold, Inc. takes its name from the Thunder Mountain Mining District, where its principal lode mining claims were located. For several years, the Company’s activities were restricted to maintaining its property position and exploration activities. During 2005, the Company sold its holdings in the Thunder Mountain Mining District. During 2007, the Company acquired the South Mountain Mines property in southwest Idaho and initiated exploration activities on that property, which continue today. | ||||||
Going Concern | ||||||
The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company is an exploration stage company and has historically incurred losses and does not have sufficient cash at December 31, 2013 to fund normal operations for the next 12 months. The Company has no recurring source of revenue and its ability to continue as a going concern is dependent on the Company’s ability to raise capital to fund its future exploration and working capital requirements. The Company’s plans for the long-term return to and continuation as a going concern include financing the Company’s future operations through sales of its common stock and/or debt and the eventual profitable exploitation of its mining properties. Additionally, the current capital markets and general economic conditions in the United States are significant obstacles to raising the required funds. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company is currently investigating a number of alternatives for raising additional capital with potential investors, lessees and joint venture partners. | ||||||
The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis was not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. | ||||||
Deferred Financing Costs | ||||||
Costs associated with financing are deferred and charged to financing costs over the life of the related financing agreements. Remaining costs and the future period over which they would be charged to expense are reassessed when amendments to the related financing agreements or prepayments occur. | ||||||
Exploration Stage Enterprise | ||||||
The Company’s financial statements are prepared using the accrual method of accounting and according to, “Accounting for Development Stage Enterprises,” as it devotes substantially all of its efforts to acquiring and exploring mining interests that will eventually provide sufficient net profits to sustain the Company’s existence. The Company began the exploration stage in 1991. Until such interests are engaged in commercial production, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage. | ||||||
Reclassifications | ||||||
Certain reclassifications have been made to conform prior year’s data to the current presentation. These reclassifications have no effect on previously reported operations, stockholders’ equity or cash flows. | ||||||
Principles of Consolidation | ||||||
The Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, Thunder Mountain Resources, Inc. and South Mountain Mines, Inc. after elimination of the intercompany accounts and transactions. | ||||||
Accounting Estimates | ||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions include the carrying value of properties and mineral claims, environmental remediation liabilities, deferred tax assets, stock options granted and the fair value of financial and derivative instruments. Management’s estimates and assumptions are based on historical experience and other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. | ||||||
Cash and cash equivalents | ||||||
For the purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be a cash equivalent. | ||||||
Income Taxes | ||||||
The Company recognizes deferred income tax liabilities or assets at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has evaluated all tax positions for open years and has concluded that it has no material unrecognized tax benefits. Management estimates their effective tax rate for the year ended December 31, 2013 to be 0%. | ||||||
Fair Value Measures | ||||||
Accounting Standard Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC prioritizes the inputs into three levels that may be used to measure fair value: | ||||||
· Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||
· Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||
· Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||
Our financial instruments currently consist principally of cash and derivative warrant liabilities. The table below sets forth our assets and liabilities measured at fair value whether recurring or non-recurring and basis and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category. | ||||||
Balance | Balance | Input | ||||
31-Dec-13 | 31-Dec-12 | Hierarchy level | ||||
Cash and cash equivalents | $ 35,882 | $ 166,505 | Level 1 | |||
Derivative warrant liabilities | $ 0 | $ (508,012) | Level 2 | |||
Equipment | ||||||
Equipment is carried at cost. Depreciation is computed using straight line depreciation methods with useful lives of three to seven years. Major additions and improvements are capitalized. Costs of maintenance and repairs which do not improve or extend the life of the associated assets are expensed in the period in which they are incurred. When there is a disposition of equipment, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is reflected in net income. | ||||||
Mining Properties and Claims | ||||||
The Company capitalizes costs for acquiring mineral properties, and expenses costs to maintain mineral rights and leases as incurred. Exploration costs are expensed in the period in which they occur. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mineral properties are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. | ||||||
Investments in Joint Venture | ||||||
For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. Under the cost method, these investments are carried at the lower of cost or fair value. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influences exist, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. If an other than temporary impairment in value was determined, it would then be charged to current net income or loss. | ||||||
Reclamation and Remediation | ||||||
The Company’s operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company would record the fair value of an asset retirement obligation as a liability in the period in which the Company incurred a legal obligation for the retirement of tangible long-lived assets. A corresponding asset would also be recorded and depreciated over the life of the asset. | ||||||
After the initial measurement of the asset retirement obligation, the liability is adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. | ||||||
Determination of any amounts recognized upon adoption is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. | ||||||
For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are reasonably estimable. Such costs are based on management’s estimate of amounts expected to be incurred when the remediation work is performed. | ||||||
Derivative Instruments | ||||||
The Company had financing arrangements that consist of freestanding derivative instruments or are hybrid instruments that contained embedded derivative features. In accordance with accounting principles generally accepted in the United States (“GAAP”), derivative instruments and hybrid instruments are recognized as either assets or liabilities in the Company’s balance sheet and are measured at fair value with gains or losses recognized in earnings depending on the nature of the derivative or hybrid instruments. Embedded derivatives that are not clearly and closely related to the host contract are bifurcated and recognized at fair value with changes in fair value recognized as either a gain or loss in earnings if they can be reliably measured. When the fair value of embedded derivative features cannot be reliably measured, the Company measures and reports the entire hybrid instrument at fair value with changes in fair value recognized as either a gain or loss in earnings. The Company determines the fair value of derivative instruments and hybrid instruments based on available market data using appropriate valuation models, giving consideration to all of the rights and obligations of each instrument. | ||||||
Share-Based Compensation | ||||||
Share-based payments to employees and directors, including grants of employee stock options are measured at fair value and expensed in the statement of operations over the vesting period. | ||||||
Net Income (Loss) Per Share | ||||||
The Company is required to have dual presentation of basic earnings per share (“EPS”) and diluted EPS. Basic EPS is computed as net income divided by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company’s common stock. | ||||||
As of December 31, 2013 and 2012, the remaining potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are: | ||||||
Dec. 31, | Dec. 31, | |||||
For year ended | 2013 | 2012 | ||||
Stock options | 2,990,000 | 2,000,000 | ||||
Warrants | 665,000 | 8,616,271 | ||||
Total possible dilution | 4,117,963 | 10,616,271 | ||||
2_Commitments
2. Commitments | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
2. Commitments | ' |
2. Commitments | |
On November 30, 2011, (“Effective Date”) Thunder Mountain Resources, Inc., entered into a mining lease with option to purchase with Richard C. and Carol Ann Fox for the exclusive rights to conduct exploration, feasibility work, development, mining and processing of minerals on certain mining claims in Lemhi County, Idaho. The initial term was for thirty years and the lease granted successive, additional fifteen year terms so long as the Company continued with the lease. The Company decided not to renew this lease in 2013. | |
All advance minimum royalties paid will be credited against any production royalties that accrue. If no minerals are produced from the premises, the lessor has no obligation to refund the advance minimum royalties. These properties are adjacent to and part of the properties in the joint venture (See Note 4) and were paid by the joint venture in 2013. | |
On March 21, 2011, the Company signed an exploration agreement with Newmont Mining Corporation on the Trout Creek Project that significantly expands the Trout Creek target area. Newmont’s private mineral package added to the Project surrounds the Company’s South Mountain claim group and consists of about 9,565 acres within a thirty-square mile Area of Influence defined in the agreement. Under the terms of the agreement, the Company is responsible for conducting the exploration program and is obligated to expend a minimum of $150,000 over the ensuing two years, with additional expenditures possible in future years. Newmont agreed to extend the date for completion of the work commitment to June 22, 2013. The Company met this requirement, and had total expenditures of $160,314 on this project through December 31, 2013. | |
Additionally, the Company is required to spend $300,000, including $150,000 in drilling expenditures, on the project in third year, or by March 22, 2014. This date has been extended to October 31, 2014 by Newmont. All subsequent dates for work commitments were extended to October 31 as well. |
3_Income_Taxes
3. Income Taxes | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Notes | ' | ||||
3. Income Taxes | ' | ||||
3. Income Taxes | |||||
The Company did not recognize a tax provision or benefit for the years ended December 31, 2013 and 2012. | |||||
At December 31, 2013 and 2012, the Company had deferred tax assets which were fully reserved by valuation allowances due to the likelihood of expiration of these deferred tax benefits prior to the Company generating future taxable income sufficient to utilize the deferred tax benefits to reduce tax expense from those future periods. The deferred tax assets were calculated based on an expected blended future tax rate of 38% for federal and Idaho state purposes. Following are the components of such assets and allowances at December 31, 2013 and 2012: | |||||
2013 | 2012 | ||||
Deferred tax assets arising from: | |||||
Net operating loss carryforwards | $ 1,651,000 | $ 1,503,000 | |||
Non-deductible share-based compensation | 163,000 | 121,000 | |||
Exploration costs | 190,000 | 175,000 | |||
Total deferred tax assets | 2,004,000 | 1,799,000 | |||
Less valuation allowance | -2,004,000 | -1,799,000 | |||
Net deferred tax asset | $ - | $ - | |||
As of December 31, 2013 and 2012, the Company has approximately $4.3 million and $3.9 million, respectively, of federal and state net operating loss carryforwards that expire in 2028 through 2033. | |||||
The income tax benefit shown in the financial statements for the year ended December 31, 2013 and 2012, differs from the federal statutory rate as follows: | |||||
2013 | 2012 | ||||
(Provision) benefit at statutory rates | $ 47,000 | $ (112,000) | |||
Change in fair value of derivative liabilities | 178,000 | 18,000 | |||
Note discount amortization | - | -53,000 | |||
Debt forgiveness | - | 350,000 | |||
State taxes | 20,000 | 16,000 | |||
Prior year change in estimate | -40,000 | - | |||
Increase in valuation allowance | -205,000 | -219,000 | |||
Total | $ - | $ - | |||
The Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns and found no positions that would require a liability for unrecognized income tax benefits to be recognized. The Company is subject to possible tax examinations for the years 2011 through 2013. The Company will deduct interest and penalties as interest expense on the financial statements. | |||||
4_Joint_Venture
4. Joint Venture | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
4. Joint Venture | ' |
4. Joint Venture | |
On November 8, 2012, the Company and Idaho State Gold Company, LLC (“ISGC”) formed the Owyhee Gold Trust, LLC, (“OGT”) a limited liability company. The Company’s contribution for its membership units was its South Mountain Mine property and related mining claims located in southwestern Idaho in Owyhee County which was valued at $479,477 and the date of contribution. As its initial contribution to OGT, ISGC will fund operations totaling $18 million; or $8 million if the Company exercises its option to participate pro-rata after ISGC expends $8 million. The agreement specifies that the members have initial ownership Interests (as defined) as 25% for the Company and 75% for ISGC. ISGC is also the manager of the joint venture. Upon payment of $3 million of qualifying expenditures not later than December 31, 2014, ISGC will receive 2,000 units representing a vested 25% ownership. The Company accounts for its investment in the joint venture by the cost method as it does not have control or significant influence over the affairs of the joint venture. | |
The Company recorded $53,203 and $60,150 in management fee income from the joint venture during the years ended December 31, 2013 and 2012, respectively. |
5_Convertible_Note_Payable
5. Convertible Note Payable | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
5. Convertible Note Payable | ' |
5. Notes Payable | |
On April 30, 2012 the Company executed a convertible promissory note payable (“Convertible Note”) to ISGC in the principal amount of $1,000,000. The note bore interest at the rate of eight percent (8%) per annum. The due date of the note was the earlier of June 30, 2012 or the date that is fourteen business days following the date on which the parties mutually agree to not enter into a joint venture agreement. Prior to maturity, the parties verbally agreed to an additional extension of the maturity date. At the election of ISGC, should the parties not enter into a joint venture (Note 5), all or any portion of the outstanding principal and accrued interest could be converted into shares of the Company’s common stock at the conversion price of $.08 USD per share. | |
The Company recognized interest expense on the note in the amount of $33,781 during the year ended December 31, 2012. On November 8, 2012 the note was cancelled when the Company and ISGC agreed to execute a joint venture agreement (the “Agreement”) (Note 4). As the Company was not required to repay or contribute any portion of this cancelled note to ISGC or the joint venture, it has been recorded as a gain on debt forgiveness in the consolidated statement of operations and comprehensive income. | |
On June 6, 2013, the Company received funds of $20,000 from Jim Collord, a director. In accordance with the terms of the note, the Company pays Mr. Collord 1% per month for interest. Principal and interest were due in full on November 30, 2013. In July 2013, a Company vehicle with no book value was transferred to Mr. Collord in agreed-upon satisfaction of $10,000 of the principal, which resulted in a $10,000 gain on the disposal of the asset. During August 2013, Mr. Collord advanced an additional $15,000 to the Company, under a new note was entered into and the total amount of $25,000 is due on February 28, 2014. The note was paid in full on February 4, 2014. At December 31, 2013 the Company had accrued interest of $1,500 payable to Mr. Collord. | |
On July 31, 2013 the Company received $20,000 from Rolf Hess, a stockholder, under a convertible promissory note. Terms of the note call for interest at 1% per month, with the entire balance of principal and interest due in full on December 1, 2013. The convertible promissory note contains the option for the holder to convert any portion of the principle and interest into Company common stock at 75% of the average closing bid price of the stock for the twenty trading days ending the day prior to the conversion. At inception, management determined the conversion price would have been $0.054. On that date, the market price for the Company’s common stock exceeded the conversion price as calculated. | |
The convertible note contained a beneficial conversion feature of $9,425 which was recognized as a discount on the note on the date of issuance. The discount was amortized over the note term using the straight-line method, which approximates the effective interest method. For the year ended December 31, 2013, the Company recorded $9,425 in interest expense related to the amortization of the discount. This note was converted to common stock and warrants in the private placement on December 1, 2013 (See Note 7). | |
6_Stock_Options
6. Stock Options | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
6. Stock Options | ' | |||
6. Stock Options | ||||
The Company has established a Stock Option Incentive Plan to authorize the granting of stock options up to 10 percent of the total number of issued and outstanding shares of common stock (3,016,755 shares as of December 31, 2013) to employees, directors and consultants. Upon exercise of options, shares are issued from the available authorized shares of the Company. Option awards are generally granted with an exercise price equal to the fair market value of the Company’s stock at the date of grant. | ||||
During 2013, the Company granted 990,000 non-qualified stock options to certain officers, directors and outside consultants with an exercise price of $0.09. Shareholder approval for the award was granted on April 30, 2013. The options immediately vested. Management valued the options as of the date of grant using a Black-Scholes option pricing model resulting in $89,038 expense being recorded. | ||||
The fair value of each option award was estimated on the date of grant using the assumptions noted in the following table: | ||||
Stock price | $0.09 | |||
Exercise price | $0.09 | |||
Expected volatility | 302.90% | |||
Expected dividends | - | |||
Expected term (in years) | 5 | |||
Risk-free rate | 0.68% | |||
Expected forfeiture rate | - | |||
The following is a summary of the Company’s options issued under the Stock Option Incentive Plan: | ||||
Weighted Average Exercise Price | ||||
Shares | ||||
Outstanding at December 31, 2011 and 2012 | 2,000,000 | $ | 0.27 | |
Granted | 990,000 | 0.09 | ||
Exercised | - | - | ||
Expired | - | - | ||
Outstanding and exercisable at December 31, 2013 | 2,990,000 | $ | 0.21 | |
Weighted average fair value of options granted during the | $ | 0.09 | ||
year ended December 31, 2013 | ||||
No stock options were granted, exercised or expired during 2012. | ||||
The average remaining contractual term of the options outstanding and exercisable at June 30, 2013 was 3.5 years. There were no options exercised during the years ended December 31, 2013 and 2012. | ||||
Total compensation cost charged against operations under the plan for directors and consultants was $89,038 and $0 for the year ended December 31, 2013 and 2012, respectively. These costs are classified under directors’ fees and professional services. | ||||
7_Stockholders_Equity
7. Stockholders' Equity | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
7. Stockholders' Equity | ' | |||
7. Stockholders’ Equity | ||||
The Company’s common stock is at $0.001 par value with 200,000,000 shares authorized. The Company also has 5,000,000 authorized shares of preferred stock with a par value of $0.0001. | ||||
On October 3, 2013, the Board of Directors approved a Private Placement financing of up to 5,000,000 units of the Company (“Unit”) at a price of $0.05 per Unit for gross proceeds of up to $250,000. Each Unit consists of one share of the Company’s common stock and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional share of common stock of the Company at a price of $0.15 for a period of 18 months. | ||||
Pursuant to a Selling Agreement, the Selling Agent was entitled to compensation in the following form: (a) a cash commission equal to 10% of the price of the Units sold. At December 31, 2013, $1,500 in commissions was accrued based on the sale of 300,000 shares; (b) an additional cash commission of 10% of gross proceeds received from the exercise of Warrants issued as part of such Units or any other equity investment made by investors introduced by the Agent within a 24 month period following closing; and (c) non-transferable broker warrants to purchase a number of additional Units equal to 5% of Units sold by the Agent in the initial offering. The Agent Warrants will have the same exercise price and otherwise be on the same terms as the Warrants. At December 31, 2013, 15,000 agent warrants were issued. | ||||
As of December 31, 2013, the Company received $45,000 in gross proceeds from the Private Placement, issuing a total 900,000 in common stock and 450,000 warrants. | ||||
On December 1, 2013, the Company converted a note payable to Rolf Hess in the amount of $20,000 for a total of 400,000 shares of common stock and 200,000 warrants, under same terms as private placement. | ||||
On January 2, 2012, the Company entered into a subscription agreement with two individuals whereby the company sold units at US$0.12 per unit for total net proceeds of $150,000. Each unit consists of one share of common stock, and one-half warrant exercisable for 2 years at $0.20. The Company issued 1,350,000 shares under this agreement. | ||||
No preferred shares have been issued. Warrant issuances in prior years had provisions that necessitated accounting for them as derivative liabilities, and at December 31, 2012 these warrants had a total fair value recorded in the consolidated balance sheet for $508,012. During 2013 these warrants expired, therefore, for the year ended December 31, 2013 a gain on change in fair value of warrant liabilities of $508,012, has been reported in the consolidated statement of operations and comprehensive income (loss). | ||||
Below is detail of the warrant derivative balance at December 31, 2013 and December 31, 2012: | ||||
2013 | 2012 | |||
Beginning balance | 508,012 | 510,893 | ||
Initial fair value of warrant derivative | - | - | ||
Revaluation of warrant derivative resulting | - | - | ||
From expiration of warrant | - | - | ||
Net change in fair value of warrant derivative | -508,012 | -2,881 | ||
Ending balance | $ 0 | $ 508,012 | ||
The following is a summary of warrants as of December 31, 2013. | ||||
Share Equivalent Warrants | Exercise Price | Expiration Date | ||
Warrants: | ||||
Warrants issued September 24, 2010 | 6,683,271 | $ 0.30 | 30-Sep-13 | |
Warrants issued June 26, 2011 | 1,000,000 | 0.2 | 8-Nov-13 | |
Warrants issued September 30, 2011 | 200,000 | 0.2 | 8-Nov-13 | |
Warrants issued October 28, 2011 | 108,000 | 0.2 | 28-Oct-13 | |
Warrants issued February 17, 2012 | 625,000 | 0.2 | 17-Feb-13 | |
Total warrants outstanding at December 31, 2012 | 8,616,271 | 0.28 | ||
Warrants expired through December 31, 2013 | -8,616,271 | 0.28 | ||
Warrants issued December 31, 2013 | 665,000 | 0.15 | 30-Jun-15 | |
Total warrants outstanding at December 31, 2013 | 665,000 | $ 0.15 | ||
8_Related_Party_Transactions
8. Related Party Transactions | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
8. Related Party Transactions | ' | ||
8. Related Party Transactions | |||
At various times throughout 2011 and through 2013 as approved under Board resolution dated July 11, 2011 (the “Resolution”), Mr. Collord, the Company’s Vice-President and Chief Operations Officer, made loans of various amounts to the Company totaling $155,000 to fund the operational needs of the Company, all of which was repaid as of December 31, 2012. The Resolution specified a maturity date of January 7, 2012, subsequently amended to May 31, 2012, and allowed the conversion of any portion of the note at any time into shares of common stock at a price equal to the lower of the last private placement, or the previous 30-day rolling average of the closing price of the stock. | |||
Management determined that the conversion option required separate valuation and bifurcation under ASC 815, and determined fair value using a Black-Scholes valuation model. The total initial fair value of the conversion options was $126,151 and was separated from the debt host. At initial recording it was determined that one of the loans’ conversion options had a fair value which exceeded the loan amount by $17,945. The excess was charged to the statement of operations in 2011 as a financing expense from conversion option. | |||
On May 31, 2012, the notes were paid in full. Accordingly, the conversion option derivative liability was first marked to fair value at that date using a Black-Scholes valuation model with inputs as per the following table. As such, a gain on the change in fair value of $18,444 was recorded. The remaining liability was then eliminated with a charge of $15,000 to additional paid-in capital. | |||
Inputs to the Black-Scholes valuation model as of May 31, 2012: | |||
Stock price | $0.07 | ||
Exercise price | $0.10 | ||
Expected term | 0.0897 (years) | ||
Estimated volatility | 281.48% | ||
Risk-free interest rate | 0.07% | ||
Expected dividend yield | 0 | ||
Below is detail of the conversion option liability balance at December 31, 2012, there was no outstanding conversion option liability at December 31, 2013. | |||
2012 | |||
Beginning balance | $ 48,231 | ||
Initial fair value of conversion option liability | - | ||
Conversion option liability eliminated | 15,000 | ||
Net change in fair value of conversion option liability | -33,231 | ||
Ending balance | $ - | ||
The Company incurred $0 and $10,456 in interest expense related to the loans for the twelve months ended December 31, 2013 and 2012, respectively. | |||
The Company recorded $53,203, and $60,150 in management fee income from the joint venture during the year ended December 31, 2013 and 2012 respectively. The joint venture partner ISGC is a shareholder of the Company. G Peter Parsley, a director and shareholder of the Company, is also an employee of ISGC. | |||
1_Summary_of_Significant_Accou1
1. Summary of Significant Accounting Policies and Business Operations: Deferred Financing Costs (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Deferred Financing Costs | ' |
Deferred Financing Costs | |
Costs associated with financing are deferred and charged to financing costs over the life of the related financing agreements. Remaining costs and the future period over which they would be charged to expense are reassessed when amendments to the related financing agreements or prepayments occur. |
1_Summary_of_Significant_Accou2
1. Summary of Significant Accounting Policies and Business Operations: Exploration Stage Enterprise (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Exploration Stage Enterprise | ' |
Exploration Stage Enterprise | |
The Company’s financial statements are prepared using the accrual method of accounting and according to, “Accounting for Development Stage Enterprises,” as it devotes substantially all of its efforts to acquiring and exploring mining interests that will eventually provide sufficient net profits to sustain the Company’s existence. The Company began the exploration stage in 1991. Until such interests are engaged in commercial production, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage. |
1_Summary_of_Significant_Accou3
1. Summary of Significant Accounting Policies and Business Operations: Reclassifications (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications have been made to conform prior year’s data to the current presentation. These reclassifications have no effect on previously reported operations, stockholders’ equity or cash flows. |
1_Summary_of_Significant_Accou4
1. Summary of Significant Accounting Policies and Business Operations: Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, Thunder Mountain Resources, Inc. and South Mountain Mines, Inc. after elimination of the intercompany accounts and transactions. |
1_Summary_of_Significant_Accou5
1. Summary of Significant Accounting Policies and Business Operations: Accounting Estimates (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Accounting Estimates | ' |
Accounting Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions include the carrying value of properties and mineral claims, environmental remediation liabilities, deferred tax assets, stock options granted and the fair value of financial and derivative instruments. Management’s estimates and assumptions are based on historical experience and other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
1_Summary_of_Significant_Accou6
1. Summary of Significant Accounting Policies and Business Operations: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Cash and Cash Equivalents | ' |
Cash and cash equivalents | |
For the purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be a cash equivalent. |
1_Summary_of_Significant_Accou7
1. Summary of Significant Accounting Policies and Business Operations: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Income Taxes | ' |
Income Taxes | |
The Company recognizes deferred income tax liabilities or assets at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has evaluated all tax positions for open years and has concluded that it has no material unrecognized tax benefits. Management estimates their effective tax rate for the year ended December 31, 2013 to be 0%. |
1_Summary_of_Significant_Accou8
1. Summary of Significant Accounting Policies and Business Operations: Fair Value Measures (Policies) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Policies | ' | |||||
Fair Value Measures | ' | |||||
Fair Value Measures | ||||||
Accounting Standard Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC prioritizes the inputs into three levels that may be used to measure fair value: | ||||||
· Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||
· Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||
· Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||
Our financial instruments currently consist principally of cash and derivative warrant liabilities. The table below sets forth our assets and liabilities measured at fair value whether recurring or non-recurring and basis and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category. | ||||||
Balance | Balance | Input | ||||
31-Dec-13 | 31-Dec-12 | Hierarchy level | ||||
Cash and cash equivalents | $ 35,882 | $ 166,505 | Level 1 | |||
Derivative warrant liabilities | $ 0 | $ (508,012) | Level 2 | |||
1_Summary_of_Significant_Accou9
1. Summary of Significant Accounting Policies and Business Operations: Property and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Property and Equipment | ' |
Equipment | |
Equipment is carried at cost. Depreciation is computed using straight line depreciation methods with useful lives of three to seven years. Major additions and improvements are capitalized. Costs of maintenance and repairs which do not improve or extend the life of the associated assets are expensed in the period in which they are incurred. When there is a disposition of equipment, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is reflected in net income. |
Recovered_Sheet1
1. Summary of Significant Accounting Policies and Business Operations: Capitalization of Internal Costs, Policy (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Capitalization of Internal Costs, Policy | ' |
Mining Properties and Claims | |
The Company capitalizes costs for acquiring mineral properties, and expenses costs to maintain mineral rights and leases as incurred. Exploration costs are expensed in the period in which they occur. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mineral properties are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. |
Recovered_Sheet2
1. Summary of Significant Accounting Policies and Business Operations: Investments in Joint Venture (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Investments in Joint Venture | ' |
Investments in Joint Venture | |
For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. Under the cost method, these investments are carried at the lower of cost or fair value. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influences exist, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. If an other than temporary impairment in value was determined, it would then be charged to current net income or loss. |
Recovered_Sheet3
1. Summary of Significant Accounting Policies and Business Operations: Reclamation and Remediation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Reclamation and Remediation | ' |
Reclamation and Remediation | |
The Company’s operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company would record the fair value of an asset retirement obligation as a liability in the period in which the Company incurred a legal obligation for the retirement of tangible long-lived assets. A corresponding asset would also be recorded and depreciated over the life of the asset. | |
After the initial measurement of the asset retirement obligation, the liability is adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. | |
Determination of any amounts recognized upon adoption is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. | |
For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are reasonably estimable. Such costs are based on management’s estimate of amounts expected to be incurred when the remediation work is performed. |
Recovered_Sheet4
1. Summary of Significant Accounting Policies and Business Operations: Derivative Instruments (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Derivative Instruments | ' |
Derivative Instruments | |
The Company had financing arrangements that consist of freestanding derivative instruments or are hybrid instruments that contained embedded derivative features. In accordance with accounting principles generally accepted in the United States (“GAAP”), derivative instruments and hybrid instruments are recognized as either assets or liabilities in the Company’s balance sheet and are measured at fair value with gains or losses recognized in earnings depending on the nature of the derivative or hybrid instruments. Embedded derivatives that are not clearly and closely related to the host contract are bifurcated and recognized at fair value with changes in fair value recognized as either a gain or loss in earnings if they can be reliably measured. When the fair value of embedded derivative features cannot be reliably measured, the Company measures and reports the entire hybrid instrument at fair value with changes in fair value recognized as either a gain or loss in earnings. The Company determines the fair value of derivative instruments and hybrid instruments based on available market data using appropriate valuation models, giving consideration to all of the rights and obligations of each instrument. |
Recovered_Sheet5
1. Summary of Significant Accounting Policies and Business Operations: Share-based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Share-based Compensation | ' |
Share-Based Compensation | |
Share-based payments to employees and directors, including grants of employee stock options are measured at fair value and expensed in the statement of operations over the vesting period. |
Recovered_Sheet6
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Policies | ' | ||
Net Income (loss) Per Share | ' | ||
Net Income (Loss) Per Share | |||
The Company is required to have dual presentation of basic earnings per share (“EPS”) and diluted EPS. Basic EPS is computed as net income divided by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company’s common stock. | |||
As of December 31, 2013 and 2012, the remaining potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are: | |||
Dec. 31, | Dec. 31, | ||
For year ended | 2013 | 2012 | |
Stock options | 2,990,000 | 2,000,000 | |
Warrants | 665,000 | 8,616,271 | |
Total possible dilution | 4,117,963 | 10,616,271 | |
Recovered_Sheet7
1. Summary of Significant Accounting Policies and Business Operations: Fair Value Measures: Fair Value, Assets Measured on Recurring and Nonrecurring Basis (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ' | |||||
Balance | Balance | Input | ||||
31-Dec-13 | 31-Dec-12 | Hierarchy level | ||||
Cash and cash equivalents | $ 35,882 | $ 166,505 | Level 1 | |||
Derivative warrant liabilities | $ 0 | $ (508,012) | Level 2 |
Recovered_Sheet8
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ||
Dec. 31, | Dec. 31, | ||
For year ended | 2013 | 2012 | |
Stock options | 2,990,000 | 2,000,000 | |
Warrants | 665,000 | 8,616,271 | |
Total possible dilution | 4,117,963 | 10,616,271 |
3_Income_Taxes_Schedule_of_Def
3. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Deferred Tax Assets and Liabilities | ' | ||
2013 | 2012 | ||
Deferred tax assets arising from: | |||
Net operating loss carryforwards | $ 1,651,000 | $ 1,503,000 | |
Non-deductible share-based compensation | 163,000 | 121,000 | |
Exploration costs | 190,000 | 175,000 | |
Total deferred tax assets | 2,004,000 | 1,799,000 | |
Less valuation allowance | -2,004,000 | -1,799,000 | |
Net deferred tax asset | $ - | $ - |
3_Income_Taxes_Schedule_of_Eff
3. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||
2013 | 2012 | ||||
(Provision) benefit at statutory rates | $ 47,000 | $ (112,000) | |||
Change in fair value of derivative liabilities | 178,000 | 18,000 | |||
Note discount amortization | - | -53,000 | |||
Debt forgiveness | - | 350,000 | |||
State taxes | 20,000 | 16,000 | |||
Prior year change in estimate | -40,000 | - | |||
Increase in valuation allowance | -205,000 | -219,000 | |||
Total | $ - | $ - |
6_Stock_Options_Schedule_of_Sh
6. Stock Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
Tables/Schedules | ' | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | |
Stock price | $0.09 | |
Exercise price | $0.09 | |
Expected volatility | 302.90% | |
Expected dividends | - | |
Expected term (in years) | 5 | |
Risk-free rate | 0.68% | |
Expected forfeiture rate | - |
6_Stock_Options_Schedule_of_Sh1
6. Stock Options: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | ' | |||
Weighted Average Exercise Price | ||||
Shares | ||||
Outstanding at December 31, 2011 and 2012 | 2,000,000 | $ | 0.27 | |
Granted | 990,000 | 0.09 | ||
Exercised | - | - | ||
Expired | - | - | ||
Outstanding and exercisable at December 31, 2013 | 2,990,000 | $ | 0.21 | |
Weighted average fair value of options granted during the | $ | 0.09 | ||
year ended December 31, 2013 | ||||
7_Stockholders_Equity_Warrant_
7. Stockholders' Equity: Warrant Derivative Balance (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Warrant Derivative Balance | ' | ||
2013 | 2012 | ||
Beginning balance | 508,012 | 510,893 | |
Initial fair value of warrant derivative | - | - | |
Revaluation of warrant derivative resulting | - | - | |
From expiration of warrant | - | - | |
Net change in fair value of warrant derivative | -508,012 | -2,881 | |
Ending balance | $ 0 | $ 508,012 |
7_Stockholders_Equity_Summary_
7. Stockholders' Equity: Summary of Warrants (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Summary of Warrants | ' | |||
Share Equivalent Warrants | Exercise Price | Expiration Date | ||
Warrants: | ||||
Warrants issued September 24, 2010 | 6,683,271 | $ 0.30 | 30-Sep-13 | |
Warrants issued June 26, 2011 | 1,000,000 | 0.2 | 8-Nov-13 | |
Warrants issued September 30, 2011 | 200,000 | 0.2 | 8-Nov-13 | |
Warrants issued October 28, 2011 | 108,000 | 0.2 | 28-Oct-13 | |
Warrants issued February 17, 2012 | 625,000 | 0.2 | 17-Feb-13 | |
Total warrants outstanding at December 31, 2012 | 8,616,271 | 0.28 | ||
Warrants expired through December 31, 2013 | -8,616,271 | 0.28 | ||
Warrants issued December 31, 2013 | 665,000 | 0.15 | 30-Jun-15 | |
Total warrants outstanding at December 31, 2013 | 665,000 | $ 0.15 |
8_Related_Party_Transactions_S
8. Related Party Transactions: Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
Tables/Schedules | ' | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | ' | |
Stock price | $0.07 | |
Exercise price | $0.10 | |
Expected term | 0.0897 (years) | |
Estimated volatility | 281.48% | |
Risk-free interest rate | 0.07% | |
Expected dividend yield | 0 |
8_Related_Party_Transactions_C
8. Related Party Transactions: Conversion Option Liability Balance (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Conversion Option Liability Balance | ' | ||
2012 | |||
Beginning balance | $ 48,231 | ||
Initial fair value of conversion option liability | - | ||
Conversion option liability eliminated | 15,000 | ||
Net change in fair value of conversion option liability | -33,231 | ||
Ending balance | $ - |
Recovered_Sheet9
1. Summary of Significant Accounting Policies and Business Operations (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Nature of Operations | 'Business Operations Thunder Mountain Gold, Inc. (“Thunder Mountain” or “the Company”) was originally incorporated under the laws of the State of Idaho on November 9, 1935, under the name of Montgomery Mines, Inc. In April 1978, the Montgomery Mines Corporation was obtained by a group of the Thunder Mountain property holders and changed its name to Thunder Mountain Gold, Inc., with the primary goal to further develop their holdings in the Thunder Mountain Mining District, located in Valley County, Idaho. Thunder Mountain Gold, Inc. takes its name from the Thunder Mountain Mining District, where its principal lode mining claims were located. For several years, the Company’s activities were restricted to maintaining its property position and exploration activities. During 2005, the Company sold its holdings in the Thunder Mountain Mining District. During 2007, the Company acquired the South Mountain Mines property in southwest Idaho and initiated exploration activities on that property, which continue today. |
Going Concern Note | 'Going Concern The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company is an exploration stage company and has historically incurred losses and does not have sufficient cash at December 31, 2013 to fund normal operations for the next 12 months. The Company has no recurring source of revenue and its ability to continue as a going concern is dependent on the Company’s ability to raise capital to fund its future exploration and working capital requirements. The Company’s plans for the long-term return to and continuation as a going concern include financing the Company’s future operations through sales of its common stock and/or debt and the eventual profitable exploitation of its mining properties. Additionally, the current capital markets and general economic conditions in the United States are significant obstacles to raising the required funds. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company is currently investigating a number of alternatives for raising additional capital with potential investors, lessees and joint venture partners. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis was not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. |
Recovered_Sheet10
1. Summary of Significant Accounting Policies and Business Operations: Fair Value Measures: Fair Value, Assets Measured on Recurring and Nonrecurring Basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Cash | $35,882 | $166,505 |
Derivative, Net Liability Position, Aggregate Fair Value | $0 | ($508,012) |
Recovered_Sheet11
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | $2,990,000 | $2,000,000 |
Warrants | 665,000 | 8,616,271 |
Dilutive Securities, Effect on Basic Earnings Per Share | $4,117,963 | $10,616,271 |
2_Commitments_Details
2. Commitments (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Exploration agreement description | 'On March 21, 2011, the Company signed an exploration agreement with Newmont Mining Corporation on the Trout Creek Project that significantly expands the Trout Creek target area. Newmont’s private mineral package added to the Project surrounds the Company’s South Mountain claim group and consists of about 9,565 acres within a thirty-square mile Area of Influence defined in the agreement. Under the terms of the agreement, the Company is responsible for conducting the exploration program and is obligated to expend a minimum of $150,000 over the ensuing two years, with additional expenditures possible in future years. Newmont agreed to extend the date for completion of the work commitment to June 22, 2013. The Company met this requirement, and had total expenditures of $160,314 on this project through December 31, 2013. Additionally, the Company is required to spend $300,000, including $150,000 in drilling expenditures, on the project in third year, or by March 22, 2014. This date has been extended to October 31, 2014 by Newmont. All subsequent dates for work commitments were extended to October 31 as well. |
3_Income_Taxes_Schedule_of_Def1
3. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards | $1,651,000 | $1,503,000 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | 163,000 | 121,000 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 190,000 | 350,000 |
Deferred Tax Assets, Gross | 2,004,000 | 1,799,000 |
Valuation Allowance, Amount | ($2,004,000) | ($1,799,000) |
3_Income_Taxes_Details
3. Income Taxes (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Details | ' | ' |
Operating Loss Carryforwards | $4.30 | $3.90 |
3_Income_Taxes_Schedule_of_Eff1
3. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $47,000 | ($112,000) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 178,000 | 18,000 |
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount | ' | -53,000 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 190,000 | 350,000 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 20,000 | 16,000 |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | -40,000 | ' |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | ($205,000) | ($219,000) |
4_Joint_Venture_Details
4. Joint Venture (Details) (USD $) | 12 Months Ended | 276 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Details | ' | ' | ' |
Joint venture management fee income | $53,203 | $60,150 | $113,353 |
5_Convertible_Note_Payable_Det
5. Convertible Note Payable (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Apr. 30, 2012 | |
Details | ' | ' | ' | ' |
Debt Instrument, Description | 'On April 30, 2012 the Company executed a convertible promissory note payable (“Convertible Note”) to ISGC in the principal amount of $1,000,000. The note bore interest at the rate of eight percent (8%) per annum. The due date of the note was the earlier of June 30, 2012 or the date that is fourteen business days following the date on which the parties mutually agree to not enter into a joint venture agreement. Prior to maturity, the parties verbally agreed to an additional extension of the maturity date. At the election of ISGC, should the parties not enter into a joint venture (Note 5), all or any portion of the outstanding principal and accrued interest could be converted into shares of the Company’s common stock at the conversion price of $.08 USD per share. | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | $20,000 | $1,000,000 |
Interest Expense, Debt | ' | $33,781 | ' | ' |
Debt Instrument Description 2 | 'On June 6, 2013, the Company received funds of $20,000 from Jim Collord, a director. In accordance with the terms of the note, the Company pays Mr. Collord 1% per month for interest. Principal and interest were due in full on November 30, 2013. In July 2013, a Company vehicle with no book value was transferred to Mr. Collord in agreed-upon satisfaction of $10,000 of the principal, which resulted in a $10,000 gain on the disposal of the asset. During August 2013, Mr. Collord advanced an additional $15,000 to the Company, under a new note was entered into and the total amount of $25,000 is due on February 28, 2014. The note was paid in full on February 4, 2014. At December 31, 2013 the Company had accrued interest of $1,500 payable to Mr. Collord. | ' | ' | ' |
Debt Instrument Description 3 | 'On July 31, 2013 the Company received $20,000 from Rolf Hess, a stockholder, under a convertible promissory note. Terms of the note call for interest at 1% per month, with the entire balance of principal and interest due in full on December 1, 2013. The convertible promissory note contains the option for the holder to convert any portion of the principle and interest into Company common stock at 75% of the average closing bid price of the stock for the twenty trading days ending the day prior to the conversion. At inception, management determined the conversion price would have been $0.054. On that date, the market price for the Company’s common stock exceeded the conversion price as calculated. | ' | ' | ' |
6_Stock_Options_Details
6. Stock Options (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Non-qualified stock options granted | 990,000 |
Non-qualified stock options exercise price | $0.09 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '3 years 6 months |
6_Stock_Options_Schedule_of_Sh2
6. Stock Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Sale of Stock, Price Per Share | $0.09 |
Fair Value Assumptions, Exercise Price | $0.09 |
Fair Value Assumptions, Expected Volatility Rate | 302.90% |
Fair Value Assumptions, Expected Term | '5 years |
Fair Value Assumptions, Risk Free Interest Rate | 0.68% |
6_Stock_Options_Schedule_of_Sh3
6. Stock Options: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,990,000 | 2,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $0.21 | $0.27 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 990,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $0.09 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $0.09 | ' |
7_Stockholders_Equity_Details
7. Stockholders' Equity (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Private Placement | 'On October 3, 2013, the Board of Directors approved a Private Placement financing of up to 5,000,000 units of the Company (“Unit”) at a price of $0.05 per Unit for gross proceeds of up to $250,000. Each Unit consists of one share of the Company’s common stock and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional share of common stock of the Company at a price of $0.15 for a period of 18 months. |
Private placement agent fees | $1,500 |
Agent warrants issued | 15,000 |
Gross proceeds private placement | 45,000 |
Stock issued for convertible note, value | 20,000 |
Stock issued for convertible note | 400,000 |
Description of subscription agreement | 'On January 2, 2012, the Company entered into a subscription agreement with two individuals whereby the company sold units at US$0.12 per unit for total net proceeds of $150,000. Each unit consists of one share of common stock, and one-half warrant exercisable for 2 years at $0.20. The Company issued 1,350,000 shares under this agreement. |
Gain on change in fair value of warrant liabilities | $508,012 |
7_Stockholders_Equity_Warrant_1
7. Stockholders' Equity: Warrant Derivative Balance (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Warrant derivative, starting balance | $508,012 | $510,893 |
Warrant derivative, net change in fair value | -508,012 | -2,881 |
Warrant derivative, ending balance | $0 | $508,012 |
7_Stockholders_Equity_Summary_1
7. Stockholders' Equity: Summary of Warrants (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Class of Warrant or Right, Outstanding | 665,000 | 8,616,271 |
Investment Warrants, Exercise Price | $0.15 | $0.28 |
8_Related_Party_Transactions_D
8. Related Party Transactions (Details) (USD $) | 12 Months Ended | 276 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Details | ' | ' | ' |
Related Party Transaction, Description of Transaction | 'At various times throughout 2011 and through 2013 as approved under Board resolution dated July 11, 2011 (the “Resolution”), Mr. Collord, the Company’s Vice-President and Chief Operations Officer, made loans of various amounts to the Company totaling $155,000 to fund the operational needs of the Company, all of which was repaid as of December 31, 2012. The Resolution specified a maturity date of January 7, 2012, subsequently amended to May 31, 2012, and allowed the conversion of any portion of the note at any time into shares of common stock at a price equal to the lower of the last private placement, or the previous 30-day rolling average of the closing price of the stock. Management determined that the conversion option required separate valuation and bifurcation under ASC 815, and determined fair value using a Black-Scholes valuation model. The total initial fair value of the conversion options was $126,151 and was separated from the debt host. At initial recording it was determined that one of the loans’ conversion options had a fair value which exceeded the loan amount by $17,945. The excess was charged to the statement of operations in 2011 as a financing expense from conversion option. On May 31, 2012, the notes were paid in full. Accordingly, the conversion option derivative liability was first marked to fair value at that date using a Black-Scholes valuation model with inputs as per the following table. As such, a gain on the change in fair value of $18,444 was recorded. The remaining liability was then eliminated with a charge of $15,000 to additional paid-in capital. | ' | ' |
Interest Expense, Related Party | $0 | $10,456 | ' |
Joint venture management fee income | $53,203 | $60,150 | $113,353 |
8_Related_Party_Transactions_S1
8. Related Party Transactions: Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Stock price | $0.07 |
Exercise price | $0.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 0.0897 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 281.48% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.07% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% |