Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-13 |
Trading Symbol | 'nrds |
Entity Registrant Name | 'NORD RESOURCES CORP |
Entity Central Index Key | '0000072316 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 113,279,325 |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Well Known Seasoned Issuer | 'No |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' |
Cash and cash equivalents | $0 | $11,863 |
Accounts receivable | 37,344 | 24,795 |
Inventories | 1,397,914 | 2,533,192 |
Prepaid expenses and other assets | 152,593 | 172,300 |
Total Current Assets | 1,587,851 | 2,742,150 |
Property and Equipment, at cost: | ' | ' |
Property and equipment | 49,684,502 | 49,634,502 |
Less accumulated depreciation, depletion and amortization | -6,943,767 | -6,648,074 |
Net Property and Equipment | 42,740,735 | 42,986,428 |
Other Assets: | ' | ' |
Deposits | 5,593 | 123,579 |
Restricted marketable securities | 686,476 | 686,476 |
Debt issuance costs, net of accumulated amortization | 0 | 54,604 |
Stockpiles and ore on leach pads | 4,003,790 | 4,412,151 |
Total Other Assets | 4,695,859 | 5,276,810 |
Total Assets | 49,024,445 | 51,005,388 |
Current Liabilities: | ' | ' |
Accounts payable | 4,884,846 | 4,490,509 |
Accrued expenses | 2,385,453 | 1,845,712 |
Accrued interest | 11,434,283 | 8,478,396 |
Copper derivatives settlement payable | 16,106,691 | 16,106,691 |
Current maturity of long-term debt | 6,164,964 | 6,183,499 |
Current maturities of senior long-term debt | 23,257,826 | 23,257,826 |
Other current liabilities | 609,007 | 379,194 |
Total Current Liabilities | 64,843,070 | 60,741,827 |
Long-Term Liabilities: | ' | ' |
Deferred revenue, less current portion | 4,621,481 | 4,623,366 |
Accrued reclamation costs | 3,936,712 | 3,597,968 |
Other long-term liabilities | 6,136 | 6,136 |
Total Long-Term Liabilities | 8,564,329 | 8,227,470 |
Total Liabilities | 73,407,399 | 68,969,297 |
Commitments and contingencies | 0 | 0 |
Stockholders' Deficit: | ' | ' |
Common stock: $.01 par value, 400,000,000 shares authorized, 113,279,325 and 112,488,604 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively | 1,132,794 | 1,124,887 |
Additional paid-in capital | 122,336,578 | 122,308,030 |
Accumulated deficit | -147,852,326 | -141,396,826 |
Total Stockholders' Deficit | -24,382,954 | -17,963,909 |
Total Liabilities and Stockholders' Deficit | $49,024,445 | $51,005,388 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common Stock, Par Value Per Share | $0.01 | $0.01 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 113,279,325 | 112,488,604 |
Common Stock, Shares, Outstanding | 113,279,325 | 112,488,604 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net sales | $959,593 | $2,034,707 | $4,069,403 | $6,429,116 |
Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) | 1,902,288 | 2,619,855 | 6,265,876 | 8,937,580 |
General and administrative expenses (includes stock based compensation of $3,842, $39,125, $23,209 and $141,374 respectively) | 428,877 | 365,164 | 1,134,991 | 1,131,112 |
Depreciation, depletion and amortization | 130,184 | 182,028 | 444,812 | 590,364 |
Loss from operations | -1,501,756 | -1,132,340 | -3,776,276 | -4,229,940 |
Other income (expense): | ' | ' | ' | ' |
Interest expense | -973,922 | -1,210,720 | -3,089,962 | -3,124,544 |
Gains on derivatives classified as trading securities | 0 | 8,509 | 0 | 54,896 |
Miscellaneous income | 195,580 | 52,547 | 410,738 | 112,020 |
Total other expense | -778,342 | -1,149,664 | -2,679,224 | -2,957,628 |
Loss before income taxes | -2,280,098 | -2,282,004 | -6,455,500 | -7,187,568 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | ($2,280,098) | ($2,282,004) | ($6,455,500) | ($7,187,568) |
Net loss per basic and diluted share of common stock: | ' | ' | ' | ' |
Weighted average number of basic and diluted common shares outstanding | 116,871,503 | 115,131,697 | 116,871,503 | 114,695,976 |
Basic and diluted loss per share of common stock | ($0.02) | ($0.02) | ($0.06) | ($0.06) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (PARENTHETICAL) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock based compensation | $3,842 | $39,125 | $23,209 | $141,347 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash Flows From Operating Activities: | ' | ' |
Net loss | ($6,455,500) | ($7,187,568) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | ' | ' |
Depreciation, depletion and amortization | 444,812 | 590,364 |
Loss on sale of property and equipment | 0 | 3,235 |
Accretion expense on accrued reclamation costs | 338,744 | 301,026 |
Amortization of debt issuance costs | 54,604 | 251,505 |
Issuance of stock options for services rendered | 23,209 | 62,597 |
Issuance of deferred stock units for services rendered | 0 | 78,750 |
Amortization of debt discount related to warrants issued - related party | 13,246 | 0 |
Gain on sale of aggregate | -18,535 | 0 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -12,549 | 135,611 |
Inventories, stockpiles and ore on leach pads | 1,394,770 | 2,310,731 |
Prepaid expenses and other assets | 137,693 | 8,385 |
Accounts payable | 394,087 | 297,823 |
Accrued expenses | 539,741 | 404,926 |
Accrued interest | 2,955,887 | 2,650,718 |
Derivative contracts at fair value | 0 | -54,896 |
Deferred revenue | -57,070 | -23,415 |
Other liabilities | 0 | -8,500 |
Net Cash Used By Operating Activities | -246,861 | -178,708 |
Cash Flows From Investing Activities: | ' | ' |
Capital expenditures | 0 | -14,123 |
Net Cash Provided (Used) By Investing Activities | 0 | -14,123 |
Cash Flows From Financing Activities: | ' | ' |
Principal payments on long-term debt | 0 | -7,500 |
Proceeds from the issuance of debt - related parties | 234,998 | 87,500 |
Principal payments on capital lease | 0 | -770 |
Net Cash Provided By Financing Activities | 234,998 | 79,230 |
Net Decrease in Cash and Cash Equivalents | -11,863 | -113,601 |
Cash and Cash Equivalents at Beginning of Period | 11,863 | 118,058 |
Cash and Cash Equivalents at End of Period | 0 | 4,457 |
Supplemental Disclosure of Cash Flow Information: | ' | ' |
Interest | 0 | 151,893 |
Income taxes | 0 | 0 |
Supplemental Disclosure of Non-cash Investing and Financing Activities: | ' | ' |
Common stock issued in exchange for deferred stock units | 7,907 | 3,110 |
Change in property and equipment financed by accounts payable | -250 | -88,975 |
Change in depreciation expense allocated to inventory | -29,106 | -84,991 |
Change in depreciation expense allocated to stockpiles and ore on leach pads | -119,763 | -133,625 |
Purchase of equipment with aggregate rock stockpiles not yet delivered | 50,000 | 0 |
Principal payment on debt made with aggregate rock stockpiles | 18,535 | 0 |
Interest payment on debt made with aggregate rock stockpiles | $7,572 | $0 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS DEFICIT (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Beginning Balance at Dec. 31, 2012 | $1,124,887 | $122,308,030 | ($141,396,826) | ($17,963,909) |
Beginning Balance (Shares) at Dec. 31, 2012 | 112,488,604 | ' | ' | ' |
Net loss | ' | ' | -6,455,500 | -6,455,500 |
Compensation expense from issuance of stock options | ' | 23,209 | ' | 23,209 |
Common stock issued for deferred stock units | 7,907 | -7,907 | ' | ' |
Common stock issued for deferred stock units (Shares) | 790,721 | ' | ' | ' |
Warrants issued in connection with related party debt issuance | ' | 13,246 | ' | 13,246 |
Ending Balance at Sep. 30, 2013 | $1,132,794 | $122,336,578 | ($147,852,326) | ($24,382,954) |
Ending Balance (Shares) at Sep. 30, 2013 | 113,279,325 | ' | ' | ' |
FINANCIAL_STATEMENTS
FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
FINANCIAL STATEMENTS [Text Block] | ' |
1. FINANCIAL STATEMENTS | |
Nord Resources Corporation (together with Cochise Aggregates and Materials, Inc., its wholly-owned Nevada subsidiary, the “Company”) is a United States based corporation involved in all phases of the mining business including exploration, permitting, developing and operating mining projects. The Company’s primary asset is the Johnson Camp Copper Mine (“Johnson Camp Mine”) located in Arizona. In July 2007, the Company commenced the reactivation of the Johnson Camp Mine. The Company commenced copper cathode production from leaching existing old dumps in January 2008 and commenced mining of new ore upon completion of the reactivation work in January 2009. The Company achieved commercial copper cathode production from newly-mined ore on April 1, 2009 following substantial completion of the testing and development phase. In July 2010, the Company suspended the mining and crushing of new ore and implemented an action plan aimed at reducing costs, maximizing cash flow and improving operating efficiencies. The current production of copper is the result of leaching copper previously placed on the heaps. The Company expects that the production level will continue to steadily decline unless mining and crushing operations are resumed. | |
The accompanying financial information of the Company is prepared in accordance with the rules prescribed for filing interim condensed consolidated financial statements and, accordingly, does not include all disclosures that may be necessary for complete financial statements prepared in accordance with U.S. generally accepted accounting principles. The disclosures presented are sufficient, in management’s opinion, to make the interim information presented not misleading. All adjustments, consisting of normal recurring adjustments which are necessary so as to make the interim information not misleading, have been made. Results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of results of operations that may be expected for the year ending December 31, 2013. The Company recommends that this financial information be read in conjunction with the complete consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, previously filed with the Securities and Exchange Commission (the “SEC”). |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
BASIS OF PRESENTATION [Text Block] | ' |
2. BASIS OF PRESENTATION | |
The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Such adjustments could be material. | |
Going Concern | |
Nedbank Limited (“Nedbank”), the Company’s senior lender, has declined to extend the forbearance agreement with respect to the scheduled principal and interest payments that were due between March 31, 2010 and September 30, 2013 under the Company’s $25,000,000 secured term loan credit facility. Accordingly, the Company has been in default of its obligations under the Credit Agreement with Nedbank since May 14, 2010. The full amount of the outstanding principal and accrued and unpaid interest is included in the Company’s current liabilities, together with any additional amounts payable under the Credit Agreement. As of the date of these condensed consolidated financial statements, Nedbank has not exercised its rights under the Credit Agreement to provide notification of the Company’s default condition or commence foreclosure actions on the collateral held, which represents substantially all of the assets of the Company. | |
On July 29, 2010, the Company reached an agreement with Fisher Sand & Gravel Company (“Fisher”) to convert $8,200,000 of unsecured trade payables, including a former note in the amount of $850,000 and $110,500 of accrued interest thereon, into a two-year unsecured note bearing interest on the outstanding principal at the rate of 6% per annum. The Company was unable to make the required principal and accrued interest payment to Fisher upon the maturity of the note on July 31, 2012. As of the date of these interim condensed consolidated financial statements, Fisher has not provided the Company with a written notice of default. If the Company fails to make the required payment to remedy the default within three business days of any such notice of default, the whole sum shall become immediately due and payable at the option of Fisher without further notice. As of September 30, 2013, the total principal balance on the Note of $6,164,964 is included in current liabilities. | |
Nedbank Capital Limited (“Nedbank Capital”) has also declined to extend the forbearance agreement regarding the Company’s failure to make the timely monthly settlement payments beginning in March of 2010 through December 31, 2011 under the Copper Hedge Agreement which is described in more detail in Note 10. As of September 30, 2013, the amount due to Nedbank Capital related to these settlements is $16,106,691 and is included in current liabilities within the copper derivatives settlement payable line item. | |
The Company’s continuation as a going concern is dependent upon its ability to refinance the obligations under the Credit Agreement with Nedbank, the Copper Hedge Agreement with Nedbank Capital, and the unsecured note with Fisher (and thereby curing the current state of default under the respective agreements), raise additional capital, and on its ability to produce copper to sell at a level where the Company becomes profitable and generates cash flows from operations. The Company’s continued existence is dependent upon its ability to resume full operations and achieve its operating plan. If management cannot achieve its operating plan because of sales shortfalls, a reduction in copper prices, or other unfavorable events, the Company may find it necessary to dispose of assets, or undertake other actions as may be appropriate. | |
The Company’s ramp-up of production following the commencement of commercial production was slower than originally forecasted. In July 2010, the Company suspended the mining and crushing of ore, and implemented measures to reduce costs, maximize cash flow and improve efficiencies. In addition, the Company initiated additional drilling, metallurgical testing and assaying to enhance the understanding of mineralogy and the distribution of acid-soluble grades in the block model, and commenced updating the mine plan to optimize production and increase operating efficiencies. | |
As disclosed in Note 1, the Company continues to leach copper previously placed on the heaps. However, the Company expects that the production level of copper will continue to steadily decline unless mining and crushing operations are resumed. Accordingly, until the Company is able to execute on its refinancing and operating plan, the Company anticipates that additional financing will be required from time to time in order to meet its current obligations. | |
The Company is evaluating alternatives to improve its liquidity. There can be no assurance that the Company will be able to improve its liquidity. | |
Use of Estimates | |
The preparation of the Company’s condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. | |
The more significant areas requiring the use of management estimates and assumptions relate to mineral reserve estimation, the metallurgical recovery rate and estimates of recoverable copper in stockpiles and ore on leach pads of the Johnson Camp Mine that are the basis for future cash flow estimates; estimates of costs to produce a pound of copper under normalized production levels (“standard costs”); useful asset lives for depreciation, depletion and amortization; reclamation and closure cost obligations; asset impairment (including long–lived assets), including estimates used to derive future cash flows associated with those assets; deferred taxes and valuation allowances; disclosures and reserves for contingencies and litigation; and the fair value and accounting treatment of financial instruments and stock based compensation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions. | |
The Company is currently in the process of revising its estimate of the proven and probable reserves at the Johnson Camp Mine. Upon the Company’s purchase of the Johnson Camp Mine in 1999, pursuant to the accounting standards and market conditions in place at the time, the Company allocated 100% of the purchase price to the property and equipment and, as such, nothing was allocated to proven and probable reserves. Accordingly, a revision to this estimate, if and when it occurs, is not expected to have a material impact on the Company’s condensed consolidated financial statements. Furthermore, under current market conditions, the Company does not believe that a revision will trigger an impairment analysis for its long lived assets. A revision to the estimate of proven and probable reserves, when and if it occurs, will be accounted for on a prospective basis and will impact those items that are amortized via the units of production method; specifically property and equipment and deferred revenue. |
ADOPTION_OF_RECENTLY_ISSUED_AC
ADOPTION OF RECENTLY ISSUED ACCOUNTING GUIDANCE | 9 Months Ended |
Sep. 30, 2013 | |
ADOPTION OF RECENTLY ISSUED ACCOUNTING GUIDANCE [Text Block] | ' |
3. ADOPTION OF RECENTLY ISSUED ACCOUNTING GUIDANCE | |
There were no material changes to the Company’s significant accounting policies disclosed in Note 2 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC on March 27, 2013. |
INVENTORY
INVENTORY | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
INVENTORY [Text Block] | ' | ||||||
4. INVENTORY | |||||||
Inventory is as follows: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
Current Assets: | (unaudited) | ||||||
Copper in process | $ | 964,381 | $ | 2,018,795 | |||
Finished goods | 6,642 | 72,815 | |||||
Material and supplies | 426,891 | 441,582 | |||||
1,397,914 | 2,533,192 | ||||||
Long-Term Assets: | |||||||
Stockpiles and ore on leach pads | 4,003,790 | 4,412,151 | |||||
Total Inventory | $ | 5,401,704 | $ | 6,945,343 | |||
The Company’s inventories are carried at the lower of average cost or net realizable value. Copper in process and finished goods inventories are valued using the average cost of production and include all costs of purchase, conversion costs (direct costs and an allocation of fixed and variable production overheads) and other costs incurred in bringing the inventories to their present location and condition. The Company considers only those costs that are consistent with its estimate of costs to be incurred at a normalized production level, currently estimated at 25,000,000 pounds per annum, as inventoriable costs. Costs incurred in excess of this standard are expensed as incurred as abnormal costs which are included in costs applicable to sales within the condensed consolidated statements of operations. Accordingly, during the three and nine month periods ended September 30, 2013, the Company expensed $1,510,501 and $4,719,979, respectively, of abnormal production costs due to the underutilization of plant capacity. During the three and nine month periods ended September 30, 2012, the Company expensed $1,800,371 and $6,384,851, respectively, of abnormal production costs due to the underutilization of plant capacity. | |||||||
The current portion of copper in process inventory is determined based on the expected amounts to be processed within the next 12 months. Inventories not expected to be processed within the next 12 months are classified under long–term assets as stockpiles and ore on leach pads. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
PROPERTY AND EQUIPMENT [Text Block] | ' | ||||||
5. PROPERTY AND EQUIPMENT | |||||||
Property and equipment costs consist of the following: | |||||||
September 30, | 31-Dec-12 | ||||||
2013 | |||||||
(unaudited) | |||||||
Land | $ | 87,114 | $ | 87,114 | |||
Buildings | 2,071,618 | 2,071,618 | |||||
Mine development costs – existing dumps | 468,034 | 468,034 | |||||
Mine development costs – new dumps | 1,841,080 | 1,841,080 | |||||
Asset retirement obligation | 2,708,870 | 2,708,870 | |||||
Mining and other equipment | 42,507,786 | 42,457,786 | |||||
Total | 49,684,502 | 49,634,502 | |||||
Accumulated depreciation, depletion and amortization | (6,943,767 | ) | (6,648,074 | ) | |||
Net property and equipment | $ | 42,740,735 | $ | 42,986,428 | |||
Total depreciation, depletion and amortization (“DD&A”) of property and equipment charged to operations was $130,184 and $444,812 for the three and nine month periods ended September 30, 2013, respectively. Total depreciation, depletion and amortization (“DD&A”) of property and equipment charged to operations was $182,028 and $590,364, respectively, for the three and nine month periods ended September 30, 2012, respectively. The Company allocates DD&A to copper inventories based upon the relative pounds in inventory at each reporting date. Accordingly, as of September 30, 2013 and December 31, 2012, $495,026 and $644,145, respectively, of DD&A costs were included in copper inventories. |
OTHER_CURRENT_LIABILITIES
OTHER CURRENT LIABILITIES | 9 Months Ended | |
Sep. 30, 2013 | ||
OTHER CURRENT LIABILITIES [Text Block] | ' | |
6. OTHER CURRENT LIABILITIES | ||
On June 24, 2013, the Company issued a promissory note to a related party of the Company in the aggregate principal amount of up to $238,411. The sum of $128,411 was advanced on June 24, 2013 – of that amount, $28,411 was applied to repay in full the principal and accrued interest outstanding under a previously-issued promissory note held by the lender, and the balance of $100,000 was allocated to working capital. The remaining $110,000 in principal was advanced under the promissory note in July 2013 and used for working capital purposes. The promissory note matures on June 24, 2014 and bears an interest rate of 20% per annum. In connection with this financing, the Company issued 953,644 common stock purchase warrants to the lender, each exercisable for a period of three years to purchase one share of the Company’s common stock at an exercise price of $0.02. Due to its de minimis nature, the value of the warrant in the amount of $13,246 was expensed as interest expense during the nine months ended September 30, 2013 within the condensed consolidated statements of operations. | ||
On July 18, 2013, the Company issued the following convertible promissory notes in the aggregate principal amount of $222,100 : | ||
(a) | Two convertible promissory notes (the “ 20% Notes”) were issued to two existing arm’s-length creditors of the Company (the “ 20% Note Holders”), to evidence the Company’s promise to repay to the 20% Note holders an aggregate of $57,252, together with interest at a rate of 20% per annum on the unpaid balance of the principal; | |
(b) | A convertible promissory note (the “Hirsch Note”) was issued to Ronald Hirsch, the Chair of the Company’s Board of Directors, to evidence the Company’s promise to repay Mr. Hirsch the sum of $89,581, together with interest at a rate of 10% per annum on the unpaid balance of the principal; and | |
(c) | A convertible promissory note (the “Seymour Note” and together with the Hirsch Note the “ 10% Notes”) was issued to Stephen Seymour, a member of the Company’s Board of Directors, to evidence the Company’s promise to repay Mr. Seymour the sum of $75,267, together with interest at a rate of 10% per annum on the unpaid balance of the principal. | |
Each of the 20% Notes will become due and payable on the earlier of January 14, 2014 and the closing of a financing transaction by the Company for gross proceeds in excess of $20,000,000. | ||
Each of the 10% Notes will become due and payable on the earlier of July 18, 2016 and the closing of a financing transaction by the Company for gross proceeds in excess of $20,000,000. | ||
The 20% Notes and the 10% Notes may be prepaid at any time without penalty. | ||
The outstanding principal under each 20% Note and the accrued and unpaid interest thereon, is convertible at the option of the holder, in whole and not in part, into shares of the Company’s common stock at the conversion price equal to $0.02 per common share. The outstanding principal under each 10% Note and the accrued and unpaid interest thereon, is convertible at the option of the holder, in whole and not in part, into shares of the Company’s common stock at the conversion price equal to $0.04 per common share. | ||
The principal amount of $28,626 advanced under each 20% Note was applied to pay in full the outstanding principal amount and accrued interest under an existing convertible promissory note issued by the Company to each 20% Note Holder on July 30, 2012, in the principal amount of $25,000 and bearing interest at the rate of 15% per annum. | ||
The principal amount of $89,581 under the Hirsch Note was advanced for the purposes of: (i) application by the Company of $77,081 to payment in full of the outstanding principal amount and accrued interest under the convertible promissory notes issued by the Company to Mr. Hirsch on December 29, 2010, in the principal amount of $50,000 and bearing interest at the rate of 10% per annum, on July 30, 2012, in the principal amount of $6,250 and bearing interest at the rate of 15% per annum, and on July 31, 2012, in the principal amount of $6,250 and bearing interest at the rate of 15% per annum; and (ii) as to the balance of $12,500, for general working capital purposes. | ||
The principal amount under the Seymour Note was advanced for the purposes of: (i) application by the Company of $62,767 to payment in full of the outstanding principal amount and accrued interest under the convertible promissory note issued by the Company to Mr. Seymour on December 29, 2010, in the principal amount of $50,000 and bearing interest at the rate of 10% per annum; and (ii) as to the balance of $12,500, for general working capital purposes. | ||
On July 26, 2013, the Company received $200,000 as an advance royalty payment from Texas Canyon, the producer of decorative rock and aggregate from the Company’s waste rock, in exchange for future royalties on 173,913.04 tons of material, in consideration of a $0.35 per ton discount. The deferred revenue will be amortized to miscellaneous income as Texas Canyon sells the aggregate to a third party. |
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
LONG-TERM DEBT [Text Block] | ' | |||||||
7. LONG-TERM DEBT | ||||||||
Long–term debt consists of the following: | ||||||||
September | December | |||||||
30, 2013 | 31, 2012 | |||||||
(unaudited) | ||||||||
Senior project financing facility | $ | 23,257,826 | $ | 23,257,826 | ||||
Less current maturities on senior facility | (23,257,826 | ) | (23,257,826 | ) | ||||
Total Long-Term Debt | $ | - | $ | - | ||||
Senior Project Financing Facility | ||||||||
The Company was unable to make the quarterly payments of principal in the amounts of $1,790,099 that were due between March 31, 2010 and September 30, 2013, respectively, and interest payments during the same period totaling $9,645,446 to Nedbank under the terms of the amended and restated Credit Agreement dated March 31, 2009. The Company is in default of its obligations under the Credit Agreement with Nedbank, and the full amount of the outstanding principal of $23,257,826 is included in the Company’s current liabilities. Given this default, Nedbank has full authority to exercise its rights under the Credit Agreement, including the acceleration of the full amount due thereunder and the institution of foreclosure proceedings against the Johnson Camp Mine. In accordance with the Credit Agreement, upon an event of default the interest rate on the outstanding debt and unpaid accrued interest is increased by 3.00% to the three-month United States Dollar London Interbank Offered Rate (“LIBOR”) plus 9.06% ( 9.31% at September 30, 2013). Accrued interest related to the Credit Agreement was $9,645,446 and $7,363,900 as of September 30, 2013 and December 31, 2012, respectively, and is included within accrued interest on the condensed consolidated balance sheets. | ||||||||
The Credit Agreement is collateralized by substantially all of the Company’s assets, restricts the Company’s ability to incur certain additional debt, and limits the Company’s ability to pay dividends and make restrictive payments. Effective March 31, 2009, the Company must comply with certain financial covenants as defined within the amended and restated credit agreement, including a debt service coverage ratio of at least 1.5, an interest coverage ratio of at least 2.0, and a minimum debt to adjusted equity ratio of 1.3. The Company was not in compliance with these covenants as of September 30, 2013. | ||||||||
Pursuant to the terms of the Credit Agreement, as amended, upon default, Nedbank has the right, among others, to provide notification of such condition and commence foreclosure actions on the collateral held, which represents substantially all of the assets of the Company. As of the date of these condensed consolidated financial statements, the Company has not received notification that Nedbank has exercised its rights under the Credit Agreement. | ||||||||
In accordance with the Credit Agreement, a default on the derivative contracts to which Nedbank is the counterparty would trigger a cross default under the Credit Agreement which would put Nedbank in a position to pursue any and all remedies under the related derivative contracts and Credit Agreement. Furthermore, under the Credit Agreement and derivative contracts, there is a master netting agreement which allows either party to offset an obligation by the other should either party be in default of its obligations. The Company was unable to make the required payments that were due to Nedbank between April 6, 2010 and January 6, 2012 under the terms of its Copper Hedge Agreement. | ||||||||
As of September 30, 2013 and December 31, 2012, the total amount due to Nedbank under the Copper Hedge Agreement was $16,106,691, and is included in copper derivatives settlement payable within the condensed consolidated balance sheets. Interest is being accrued on this liability at Nedbank’s internal borrowing rate ( 0.46% at September 30, 2013). | ||||||||
Note Payable with Mining Contractor | ||||||||
On July 29, 2010, the Company reached an agreement with Fisher to convert $8,200,000 of unsecured trade payables, including a previous note in the amount of $850,000 and $110,500 of accrued interest thereon, into a two-year unsecured note bearing interest on the outstanding principal at the rate of 6% per annum. | ||||||||
Under the Settlement Agreement, Fisher is entitled to receive weekly payments on the Note with the amounts based on a formula related to the level of copper sales made by the Company and the weekly realized price of copper. Accordingly, under the Agreement, if the Company ships four loads, as defined in the Agreement, or approximately 176,000 pounds of copper or greater on a weekly basis, the weekly payments are calculated by multiplying the base amount of $100,000 by a factor equal to the average weekly realized price of copper per pound divided by $3.00. If the Company ships between 132,000 (three loads) and 176,000 (four loads) pounds of copper on a weekly basis, the base weekly amount decreases to $75,000. If the Company ships less than 132,000 pounds of copper on a weekly basis, the amounts due under the note equates to interest only payments on the outstanding principal balance. Any unpaid principal, along with any accrued interest, was due in full on July 31, 2012. | ||||||||
During the nine months ended September 30, 2013, the Company made a non-cash (sale of aggregate) principal payment of $18,535 and an interest payment of $7,572 on the note. During the three and nine months ended September 30, 2012, the Company made principal payments on the note of $0 and $7,500, respectively. Interest payments of $0 and $151,893, respectively, were made in accordance with the Agreement for the three and nine month periods ended September 30, 2012. | ||||||||
The Company was unable to make the required principal and accrued interest payment to Fisher upon the maturity of the note on July 31, 2012. As of the date of these interim condensed consolidated financial statements, Fisher has not provided the Company with a written notice of default. If the Company fails to make the required payment to remedy the default within three business days of any such notice of default, the whole sum shall become immediately due and payable at the option of Fisher without further notice. The Company has accrued $479,564 and $224,223 of interest as of September 30, 2013 and December 31, 2012, respectively, which is included within accrued interest on the condensed consolidated balance sheets. As of September 30, 2013 and December 31, 2012, the total principal balance on the note of $6,164,964 and $6,183,499, respectively, is included in current liabilities. |
DEFERRED_REVENUE
DEFERRED REVENUE | 9 Months Ended |
Sep. 30, 2013 | |
DEFERRED REVENUE [Text Block] | ' |
8. DEFERRED REVENUE | |
On March 31, 2009, the Company sold to Royal Gold (formerly known as IRC Nevada Inc.) a 2.5% net smelter royalty on the mineral production sold from the existing mineral rights at Johnson Camp. The net proceeds of the sale in the amount of $4,950,000 were recorded as deferred revenue and are being amortized to revenue over the life of the mine based on a “units of production” method. Amounts payable to Royal Gold, which are being calculated based on the revenue generated from the sale of copper, are expensed in the period incurred. | |
During the three and nine month periods ended September 30, 2013, the Company recognized $3,916 and $15,932 respectively, in revenue and recorded $23,943 and $102,350, respectively, in royalty expense related to this royalty within the condensed consolidated statements of operations. | |
During the three and nine month periods ended September 30, 2012, the Company recognized $7,587 and $23,416, respectively, in revenue and recorded $50,677 and $160,767, respectively, in royalty expense related to this royalty within the condensed consolidated statements of operations. | |
As of September 30, 2013 and December 31, 2012, the total amount owed by the Company under the terms of the royalty agreement was $1,452,532 and $1,350,182, respectively, and is included in accounts payable on the condensed consolidated balance sheets. Furthermore, amounts greater than 30 days past due accrue interest at a rate of 12% per annum for which the Company has accrued $462,241 and $247,042 of interest as of September 30, 2013 and December 31, 2012, respectively, which is included within accrued interest on the condensed consolidated balance sheets. | |
On October 18, 2012, the Company received $180,000 as an advance royalty payment from Texas Canyon, the producer of decorative rock and aggregate from the Company’s waste rock, in exchange for $204,000 of future royalties. On July 26, 2013 the Company received $200,000 as an advance royalty payment from Texas Canyon, the producer of decorative rock and aggregate from the Company’s waste rock, in exchange for future royalties on 173,913.04 tons of material, in consideration of a $0.35 per ton discount. The deferred revenue is being amortized to miscellaneous income as Texas Canyon sells the aggregate to a third party. During the three and nine month periods ended September 30, 2013, the Company recognized $61,697 and $195,805, respectively, in miscellaneous income. | |
Total deferred revenue for both contracts is $4,799,298 and $4,661,371 as of September 30, 2013 and December 31, 2012, respectively. Deferred revenue of $17,878 is expected to be amortized to revenue over the next twelve months. |
ACCRUED_RECLAMATION_COSTS
ACCRUED RECLAMATION COSTS | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
ACCRUED RECLAMATION COSTS [Text Block] | ' | |||||||
9. ACCRUED RECLAMATION COSTS | ||||||||
The Company estimates its asset retirement obligations and related accrued reclamation costs using an expected cash flow approach, in which multiple cash flow scenarios are used to reflect a range of possible outcomes. During 2010, the Company completed an updated review of its reclamation plan and the related estimated costs of reclamation. As a result, as of December 31, 2010, the Company estimated the aggregate undiscounted obligation to be approximately $13,000,000 for the Johnson Camp Mine. However, as of March 31, 2011, the Company determined that certain aspects of the reclamation plan could be revised thus decreasing the estimated costs to reclaim the Johnson Camp Mine to approximately $9,100,000 (based on 2011 dollars). This estimate was subsequently refined during the quarter ended September 30, 2011 to $10,100,000. | ||||||||
To calculate the estimated fair value of this obligation, the projected cash flows, which were further adjusted for an estimated inflation rate of 2.5% per annum, were discounted at the Company’s estimated annual credit–adjusted risk free interest rate of 12.53% at April 1, 2011. The estimated remaining life of the Johnson Camp Mine as of September 30, 2013 is approximately twelve years. Accordingly, the cash expenditures for reclamation and closure activities are expected to occur at the conclusion of production, currently anticipated to be in 2024 – 2025. As 100% of the cash flows are projected to occur in 2024-2025, 100% of the accrued reclamation costs are classified as long-term within the condensed consolidated balance sheets. A reconciliation of the beginning and ending carrying amounts of the Company’s asset retirement obligation as of September 30, 2013 and December 31, 2012, respectively, are as follows: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(unaudited) | ||||||||
Accrued reclamation costs, beginning of period | $ | 3,597,968 | $ | 3,195,497 | ||||
Accretion expense | 338,744 | 402,471 | ||||||
Accrued reclamation costs, end of period | $ | 3,936,712 | $ | 3,597,968 |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2013 | |
DERIVATIVE INSTRUMENTS [Text Block] | ' |
10. DERIVATIVE INSTRUMENTS | |
Copper Price Protection Program | |
In connection with the Credit Agreement dated June 28, 2007 with Nedbank, the Company agreed to implement a price protection program with respect to a specified percentage of copper output from the Johnson Camp Mine. The price protection program consisted of financial derivatives whereby the Company entered into a combination of forward sale and call option contracts for copper quantities based on a portion of the estimated production from the Johnson Camp Mine during the term of the loan. These financial derivatives did not require the physical delivery of copper cathode and were expected to be net cash settled upon maturity and/or settlement of the contracts based upon the average daily London Metal Exchange (LME) cash settlement copper price for the month of settlement. As of December 31, 2011, all of the copper derivative contracts had matured and the outstanding amount due to the settlement of the contracts was recorded in copper derivatives settlement payable on the consolidated balance sheets. | |
As noted above, as of September 30, 2013, the Company is in default of the related Copper Hedge Agreement with Nedbank Capital as it failed to make the requisite monthly payments (March 31, 2010 through December 31, 2011 settlements) related to the settlement of the derivative contracts. As of September 30, 2013 and December 31 2012, the total amounts owed to Nedbank as a result of these missed payments are $16,106,691. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
STOCK-BASED COMPENSATION [Text Block] | ' | |||||||||||||
11. STOCK-BASED COMPENSATION | ||||||||||||||
Stock Options | ||||||||||||||
The Company has granted incentive and non-qualified stock options to its employees and directors under its 2006 Stock Incentive Plan. The Company has also granted non-qualified, non-plan stock options, which have been authorized by the Company’s board of directors. Stock options are generally granted at an exercise price equal to or greater than the quoted market price on the date of grant. | ||||||||||||||
There are 4,431,744 stock options outstanding at September 30, 2013 issued pursuant to the Company’s 2006 Stock Incentive Plan. The outstanding options expire at various dates from 2013 to 2017. The Company did not grant any stock options during the three and nine month periods ended September 30, 2013. During the three and nine month periods ended September 30, 2013, the Company recognized $3,842 and $23,209, respectively, in compensation expense related to employee stock options that vest over time. The Company did not grant any stock options during the three and nine month periods ended September 30, 2012. During the three and nine month periods ended September 30, 2012, the Company recognized $13,075 and $62,597, respectively, in compensation expense related to employee stock options that vest over time. | ||||||||||||||
As summarized in the following tables, during the three and nine month periods ended September 30, 2013, there were no stock options granted nor exercised, and 0 and 6,750 were cancelled or forfeited, respectively. | ||||||||||||||
Weighted | ||||||||||||||
Number of | Average | |||||||||||||
Shares | Exercise Price | |||||||||||||
Three months ended September 30, 2013 | ||||||||||||||
Options outstanding at June 30, 2013 | 4,431,744 | $ | . 18 | |||||||||||
Granted | - | - | ||||||||||||
Exercised | - | - | ||||||||||||
Cancelled/Forfeited | - | - | ||||||||||||
Options outstanding at September 30, 2013 | 4,431,744 | $ | . 18 | |||||||||||
Weighted | ||||||||||||||
Number of | Average | |||||||||||||
Shares | Exercise Price | |||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
Options outstanding at December 31, 2012 | 4,438,494 | $ | . 18 | |||||||||||
Granted | - | - | ||||||||||||
Exercised | - | - | ||||||||||||
Cancelled/Forfeited | (6,750 | ) | 0.16 | |||||||||||
Options outstanding at September 30, 2013 | 4,431,744 | $ | . 18 | |||||||||||
The following table summarizes certain additional information about the Company’s total and exercisable stock options outstanding as of September 30, 2013: | ||||||||||||||
Weighted | ||||||||||||||
Average | Weighted | |||||||||||||
Remaining | Average | |||||||||||||
Number | Contractual | Exercise | Intrinsic | |||||||||||
Outstanding | Life in Years | Price | Value | |||||||||||
Total stock options | 4,431,744 | 1.9 | $ | . 18 | $ | - | ||||||||
Exercisable stock options | 4,224,994 | 2 | $ | . 18 | $ | - | ||||||||
The closing price of the Company’s common stock on the OTCQB Market on September 30, 2013 was $0.03 per share. Accordingly, the intrinsic values of total stock options and exercisable stock options as of September 30, 2013 was $0. | ||||||||||||||
The following table summarizes the unvested stock options outstanding as of September 30, 2013: | ||||||||||||||
Weighted Average | ||||||||||||||
Grant Date | ||||||||||||||
Number of Shares | Fair Value | |||||||||||||
Three months ended September 30, 2013 | ||||||||||||||
Unvested options outstanding at June 30, 2013 | 604,997 | $ | . 10 | |||||||||||
Granted | - | - | ||||||||||||
Vested | (398,247 | ) | 0.08 | |||||||||||
Cancelled/Forfeited | - | - | ||||||||||||
Unvested Options outstanding at September 30, 2013 | 206,750 | $ | . 11 | |||||||||||
Weighted Average | ||||||||||||||
Grant Date | ||||||||||||||
Number of Shares | Fair Value | |||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
Unvested options outstanding at December 31, 2012 | 811,747 | $ | . 11 | |||||||||||
Granted | - | - | ||||||||||||
Vested | (604,997 | ) | 0.09 | |||||||||||
Cancelled/Forfeited | - | - | ||||||||||||
Unvested Options outstanding at September 30, 2013 | 206,750 | $ | . 11 | |||||||||||
The total grant date fair value of options vested during the three and nine month periods ended September 30, 2013 was $33,333 and $56,634, respectively. The Company recognizes stock option compensation expense on stock options with a graded vesting schedule on a straight line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. As of September 30, 2013, 206,750 stock options remain unvested, which will result in $6,539 in compensation expense to be recognized during the next nine months. | ||||||||||||||
Deferred Stock Units | ||||||||||||||
During the three and nine months ended September 30, 2012, certain equity-based fees have been paid to the Company’s non-executive directors in the form of awards issued pursuant to the Company’s 2006 Stock Incentive Plan. The non-executive directors have limited rights, exercisable within applicable time limits, to elect to have any percentage of such awards, and any percentage of cash fees, payable in deferred stock units. Each of the Company’s non-executive directors exercised such rights in respect of the equity-based fees payable to him for the three and nine months ended September 30, 2012. | ||||||||||||||
During the three and nine months ended September 30, 2012, Douglas Hamilton, the Chairman of the Company’s Audit Committee, received 210,525 and 518,650 deferred stock units, respectively; John Cook, the Chairman of the Company’s Compensation Committee, received 171,053 and 421,403 deferred stock units, respectively; Stephen Seymour, the Chairman of the Company’s Corporate Governance and Nominating Committee, received 171,053 and 421,403 deferred stock units, respectively. During the three and nine months ended September 30, 2012, the Company recognized expense of $26,250 and $78,750, respectively, related to the issuance of deferred stock units to its independent directors. The deferred stock units were granted under the 2006 Deferred Stock Unit Plan, which forms part of the Company’s 2006 Stock Incentive Plan. | ||||||||||||||
During the three and nine months ended September 30, 2013, 0 and 790,721 deferred stock units were converted into shares of the Company’s common stock, respectively. As of September 30, 2013, there were 3,592,179 deferred stock units outstanding. |
BASIC_AND_DILUTED_LOSS_PER_SHA
BASIC AND DILUTED LOSS PER SHARE | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
BASIC AND DILUTED LOSS PER SHARE [Text Block] | ' | ||||||
12. BASIC AND DILUTED LOSS PER SHARE | |||||||
Basic earnings (loss) per common share is computed by dividing net earnings (loss) by the weighted average number of basic common shares outstanding during the period. Diluted earnings (loss) per share are calculated based on the weighted average number of basic common shares outstanding adjusted for the dilutive effect, if any, of stock options, warrants and other dilutive securities outstanding. Outstanding options, warrants and other dilutive securities to purchase 12,568,862 and 8,474,660 shares of common stock for the three and nine months ended September 30, 2013 and 2012, respectively, are not included in the computation of diluted earnings per share as the effect of the assumed exercise of these options and warrants, and other dilutive securities would be anti-dilutive. During the nine months ended | |||||||
September 30, 2012, 15,333,350 and 40,000,000 warrants with an exercise price of $1.10 and $0.38, respectively, expired unexercised. | |||||||
Components of basic and diluted loss per share were as follows: | |||||||
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
(unaudited) | (unaudited) | ||||||
Net loss available for common stock holders | $ | (2,280,098 | ) | $ | (2,282,004 | ) | |
Weighted average basic outstanding shares of common stock | 116,871,503 | 115,131,697 | |||||
Dilutive effect of warrants and stock options | - | - | |||||
Weighted average diluted outstanding shares of common stock | 116,871,503 | 115,131,697 | |||||
Loss per share: | |||||||
Basic | $ | (0.02 | ) | $ | (0.02 | ) | |
Diluted | $ | (0.02 | ) | $ | (0.02 | ) | |
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
(unaudited) | (unaudited) | ||||||
Net loss available for common stock holders | $ | (6,455,500 | ) | $ | (7,187,568 | ) | |
Weighted average basic outstanding shares of common stock | 116,871,503 | 114,695,976 | |||||
Dilutive effect of warrants and stock options | - | - | |||||
Weighted average diluted outstanding shares of common stock | 116,871,503 | 114,695,976 | |||||
Loss per share: | |||||||
Basic | $ | (0.06 | ) | $ | (0.06 | ) | |
Diluted | $ | (0.06 | ) | $ | (0.06 | ) |
CONCENTRATIONS
CONCENTRATIONS | 9 Months Ended |
Sep. 30, 2013 | |
CONCENTRATIONS [Text Block] | ' |
13. CONCENTRATIONS | |
The Company currently sells 100% of its copper cathode production to Red Kite Master Fund Limited (“Red Kite”) under a cathode sales agreement effective September 30, 2013, as amended, which replaced an earlier long term cathode sales agreement between the parties that first became effective on February 1, 2008. The cathode sales agreement runs through December 31, 2013 with renewable extensions by mutual agreement of both parties. The Company considers the credit risk to be minimal since Red Kite is a large, well-capitalized and diversified multinational organization. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Text Block] | ' | ||||||
14. FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||
Disclosures about fair value of financial instruments for the Company’s financial instruments are presented in the table below. These calculations are subjective in nature and involve uncertainties and significant matters of judgment and do not include income tax considerations. Therefore, the results cannot be determined with precision and, in certain cases, cannot be substantiated by comparison to independent market values and may not be realized in an actual sale or settlement of the instruments. There may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used could significantly affect the results. | |||||||
The following table presents a summary of the Company’s financial instruments as of September 30, 2013: | |||||||
Carrying | Estimated Fair | ||||||
Amount | Value | ||||||
(unaudited) | (unaudited) | ||||||
Financial Assets: | |||||||
Restricted marketable securities | $ | 686,476 | $ | 686,476 | |||
Accounts receivable | 37,344 | 37,344 | |||||
Financial Liabilities: | |||||||
Accounts payable | $ | 4,884,846 | $ | *** | |||
Accrued expenses | 2,385,453 | *** | |||||
Accrued interest | 11,434,283 | *** | |||||
Copper derivatives settlement payable | 16,106,691 | *** | |||||
Current maturity of long-term debt | 6,164,964 | *** | |||||
Current maturities of senior long–term debt | 23,257,826 | *** | |||||
Other current liabilities | 609,007 | *** | |||||
Financial assets include cash and cash equivalents, restricted marketable securities and accounts receivable and the carrying amounts approximate fair value because of the short maturities of these financial instruments. | |||||||
*** Given the current situation with the Company’s senior lender and the related default of the underlying Credit Agreement, as amended, the Company does not believe that an estimate of the fair value of its senior long-term debt can be made without incurring substantial time and resources. Accordingly, an estimate of the fair value of its senior long-term debt as of September 30, 2013 is considered impracticable. In addition, due to the current situation with the Company’s senior lender and the impact this situation may have on the remaining liabilities of the Company, as of September 30, 2013, an estimate of the fair value of accounts payable, accrued expenses, accrued interest, copper derivatives settlement payable, long term debt, and other current liabilities is also considered impracticable. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2013 | |
SUBSEQUENT EVENTS [Text Block] | ' |
15. SUBSEQUENT EVENTS | |
On October 3, 2013, the Company entered into a non-binding letter of intent with an arm’s length third party that contemplates the third party making significant equity and/or debt financing available to the Company, subject to the third party obtaining the necessary funding, completion of due diligence to the satisfaction of the third party, the execution and delivery of a definitive agreement on mutually acceptable terms, and certain other conditions. The third party has advanced a total of $300,000 to the Company for general working capital purposes. All funds advanced by the third party bear interest at the rate of 15 percent per annum, and will be repayable from the proceeds of the equity and/or debt financing transaction (if any). The Company expects that the loan would become repayable upon demand if the equity and/or debt financing transaction do not close. There can be no assurance that the Company will be successful on the closing of the equity and/or debt financing contemplated in this transaction. | |
On October 23, 2013, the Company issued a convertible promissory note in the aggregate principal amount of $100,000. The note will become due and payable on the earlier of October 22, 2014 and the closing of a financing transaction by the Company for gross proceeds in excess of $20,000,000. The outstanding principal under the Note and the accrued and unpaid interest thereon, is convertible at the option of the holder, in whole and not in part, into shares of the Company’s common stock at the conversion price equal to $0.02 per common share. |
INVENTORY_Tables
INVENTORY (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
Current Assets: | (unaudited) | ||||||
Copper in process | $ | 964,381 | $ | 2,018,795 | |||
Finished goods | 6,642 | 72,815 | |||||
Material and supplies | 426,891 | 441,582 | |||||
1,397,914 | 2,533,192 | ||||||
Long-Term Assets: | |||||||
Stockpiles and ore on leach pads | 4,003,790 | 4,412,151 | |||||
Total Inventory | $ | 5,401,704 | $ | 6,945,343 |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Schedule of Property, Plant and Equipment [Table Text Block] | ' | ||||||
September 30, | 31-Dec-12 | ||||||
2013 | |||||||
(unaudited) | |||||||
Land | $ | 87,114 | $ | 87,114 | |||
Buildings | 2,071,618 | 2,071,618 | |||||
Mine development costs – existing dumps | 468,034 | 468,034 | |||||
Mine development costs – new dumps | 1,841,080 | 1,841,080 | |||||
Asset retirement obligation | 2,708,870 | 2,708,870 | |||||
Mining and other equipment | 42,507,786 | 42,457,786 | |||||
Total | 49,684,502 | 49,634,502 | |||||
Accumulated depreciation, depletion and amortization | (6,943,767 | ) | (6,648,074 | ) | |||
Net property and equipment | $ | 42,740,735 | $ | 42,986,428 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
September | December | |||||||
30, 2013 | 31, 2012 | |||||||
(unaudited) | ||||||||
Senior project financing facility | $ | 23,257,826 | $ | 23,257,826 | ||||
Less current maturities on senior facility | (23,257,826 | ) | (23,257,826 | ) | ||||
Total Long-Term Debt | $ | - | $ | - |
ACCRUED_RECLAMATION_COSTS_Tabl
ACCRUED RECLAMATION COSTS (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Schedule of Change in Asset Retirement Obligation [Table Text Block] | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(unaudited) | ||||||||
Accrued reclamation costs, beginning of period | $ | 3,597,968 | $ | 3,195,497 | ||||
Accretion expense | 338,744 | 402,471 | ||||||
Accrued reclamation costs, end of period | $ | 3,936,712 | $ | 3,597,968 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | |||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ' | ||||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||||
Number of | Average | Number of | Average | |||||||||||||||||||
Shares | Exercise Price | Shares | Exercise Price | |||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | |||||||||||||||||||||
Options outstanding at June 30, 2013 | 4,431,744 | $ | . 18 | Options outstanding at December 31, 2012 | 4,438,494 | $ | . 18 | |||||||||||||||
Granted | - | - | Granted | - | - | |||||||||||||||||
Exercised | - | - | Exercised | - | - | |||||||||||||||||
Cancelled/Forfeited | - | - | Cancelled/Forfeited | (6,750 | ) | 0.16 | ||||||||||||||||
Options outstanding at September 30, 2013 | 4,431,744 | $ | . 18 | Options outstanding at September 30, 2013 | 4,431,744 | $ | . 18 | |||||||||||||||
Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | ' | ' | ||||||||||||||||||||
Weighted | ||||||||||||||||||||||
Average | Weighted | |||||||||||||||||||||
Remaining | Average | |||||||||||||||||||||
Number | Contractual | Exercise | Intrinsic | |||||||||||||||||||
Outstanding | Life in Years | Price | Value | |||||||||||||||||||
Total stock options | 4,431,744 | 1.9 | $ | . 18 | $ | - | ||||||||||||||||
Exercisable stock options | 4,224,994 | 2 | $ | . 18 | $ | - | ||||||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | ' | ||||||||||||||||||||
Weighted Average | Weighted Average | |||||||||||||||||||||
Grant Date | Grant Date | |||||||||||||||||||||
Number of Shares | Fair Value | Number of Shares | Fair Value | |||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | |||||||||||||||||||||
Unvested options outstanding at June 30, 2013 | 604,997 | $ | . 10 | Unvested options outstanding at December 31, 2012 | 811,747 | $ | . 11 | |||||||||||||||
Granted | - | - | Granted | - | - | |||||||||||||||||
Vested | (398,247 | ) | 0.08 | Vested | (604,997 | ) | 0.09 | |||||||||||||||
Cancelled/Forfeited | - | - | Cancelled/Forfeited | - | - | |||||||||||||||||
Unvested Options outstanding at September 30, 2013 | 206,750 | $ | . 11 | Unvested Options outstanding at September 30, 2013 | 206,750 | $ | . 11 |
BASIC_AND_DILUTED_LOSS_PER_SHA1
BASIC AND DILUTED LOSS PER SHARE (Tables) | 3 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ' | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||
Net loss available for common stock holders | $ | (2,280,098 | ) | $ | (2,282,004 | ) | Net loss available for common stock holders | $ | (6,455,500 | ) | $ | (7,187,568 | ) | |
Weighted average basic outstanding shares of common stock | 116,871,503 | 115,131,697 | Weighted average basic outstanding shares of common stock | 116,871,503 | 114,695,976 | |||||||||
Dilutive effect of warrants and stock options | - | - | Dilutive effect of warrants and stock options | - | - | |||||||||
Weighted average diluted outstanding shares of common stock | 116,871,503 | 115,131,697 | Weighted average diluted outstanding shares of common stock | 116,871,503 | 114,695,976 | |||||||||
Loss per share: | Loss per share: | |||||||||||||
Basic | $ | (0.02 | ) | $ | (0.02 | ) | Basic | $ | (0.06 | ) | $ | (0.06 | ) | |
Diluted | $ | (0.02 | ) | $ | (0.02 | ) | Diluted | $ | (0.06 | ) | $ | (0.06 | ) |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Schedule of Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||
Carrying | Estimated Fair | ||||||
Amount | Value | ||||||
(unaudited) | (unaudited) | ||||||
Financial Assets: | |||||||
Restricted marketable securities | $ | 686,476 | $ | 686,476 | |||
Accounts receivable | 37,344 | 37,344 | |||||
Financial Liabilities: | |||||||
Accounts payable | $ | 4,884,846 | $ | *** | |||
Accrued expenses | 2,385,453 | *** | |||||
Accrued interest | 11,434,283 | *** | |||||
Copper derivatives settlement payable | 16,106,691 | *** | |||||
Current maturity of long-term debt | 6,164,964 | *** | |||||
Current maturities of senior long–term debt | 23,257,826 | *** | |||||
Other current liabilities | 609,007 | *** |
BASIS_OF_PRESENTATION_Narrativ
BASIS OF PRESENTATION (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Basis Of Presentation 1 | $25,000,000 |
Basis Of Presentation 2 | 8,200,000 |
Basis Of Presentation 3 | 850,000 |
Basis Of Presentation 4 | 110,500 |
Basis Of Presentation 5 | 6.00% |
Basis Of Presentation 6 | 6,164,964 |
Basis Of Presentation 7 | $16,106,691 |
Basis Of Presentation 8 | 100.00% |
INVENTORY_Narrative_Details
INVENTORY (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
lb | |
Inventory 1 | 25,000,000 |
Inventory 2 | $1,510,501 |
Inventory 3 | 4,719,979 |
Inventory 4 | 1,800,371 |
Inventory 5 | $6,384,851 |
PROPERTY_AND_EQUIPMENT_Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Property And Equipment 1 | $130,184 |
Property And Equipment 2 | 444,812 |
Property And Equipment 3 | 182,028 |
Property And Equipment 4 | 590,364 |
Property And Equipment 5 | 495,026 |
Property And Equipment 6 | $644,145 |
OTHER_CURRENT_LIABILITIES_Narr
OTHER CURRENT LIABILITIES (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Other Current Liabilities 1 | $238,411 |
Other Current Liabilities 2 | 128,411 |
Other Current Liabilities 3 | 28,411 |
Other Current Liabilities 4 | 100,000 |
Other Current Liabilities 5 | 110,000 |
Other Current Liabilities 6 | 20.00% |
Other Current Liabilities 7 | 953,644 |
Other Current Liabilities 8 | 0.02 |
Other Current Liabilities 9 | 13,246 |
Other Current Liabilities 10 | 222,100 |
Other Current Liabilities 11 | 20.00% |
Other Current Liabilities 12 | 20.00% |
Other Current Liabilities 13 | 20.00% |
Other Current Liabilities 14 | 57,252 |
Other Current Liabilities 15 | 20.00% |
Other Current Liabilities 16 | 89,581 |
Other Current Liabilities 17 | 10.00% |
Other Current Liabilities 18 | 10.00% |
Other Current Liabilities 19 | 75,267 |
Other Current Liabilities 20 | 10.00% |
Other Current Liabilities 21 | 20.00% |
Other Current Liabilities 22 | 20,000,000 |
Other Current Liabilities 23 | 10.00% |
Other Current Liabilities 24 | 20,000,000 |
Other Current Liabilities 25 | 20.00% |
Other Current Liabilities 26 | 10.00% |
Other Current Liabilities 27 | 20.00% |
Other Current Liabilities 28 | 0.02 |
Other Current Liabilities 29 | 10.00% |
Other Current Liabilities 30 | 0.04 |
Other Current Liabilities 31 | 28,626 |
Other Current Liabilities 32 | 20.00% |
Other Current Liabilities 33 | 20.00% |
Other Current Liabilities 34 | 25,000 |
Other Current Liabilities 35 | 15.00% |
Other Current Liabilities 36 | 89,581 |
Other Current Liabilities 37 | 77,081 |
Other Current Liabilities 38 | 50,000 |
Other Current Liabilities 39 | 10.00% |
Other Current Liabilities 40 | 6,250 |
Other Current Liabilities 41 | 15.00% |
Other Current Liabilities 42 | 6,250 |
Other Current Liabilities 43 | 15.00% |
Other Current Liabilities 44 | 12,500 |
Other Current Liabilities 45 | 62,767 |
Other Current Liabilities 46 | 50,000 |
Other Current Liabilities 47 | 10.00% |
Other Current Liabilities 48 | 12,500 |
Other Current Liabilities 49 | 200,000 |
Other Current Liabilities 50 | 173,913.04 |
Other Current Liabilities 51 | $0.35 |
LONGTERM_DEBT_Narrative_Detail
LONG-TERM DEBT (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
lb | |
Long-term Debt 1 | $1,790,099 |
Long-term Debt 2 | 9,645,446 |
Long-term Debt 3 | 23,257,826 |
Long-term Debt 4 | 3.00% |
Long-term Debt 5 | 9.06% |
Long-term Debt 6 | 9.31% |
Long-term Debt 7 | 9,645,446 |
Long-term Debt 8 | 7,363,900 |
Long-term Debt 9 | 1.5 |
Long-term Debt 10 | 2 |
Long-term Debt 11 | 1.3 |
Long-term Debt 12 | 16,106,691 |
Long-term Debt 13 | 0.46% |
Long-term Debt 14 | 8,200,000 |
Long-term Debt 15 | 850,000 |
Long-term Debt 16 | 110,500 |
Long-term Debt 17 | 6.00% |
Long-term Debt 18 | 176,000 |
Long-term Debt 19 | 100,000 |
Long-term Debt 20 | 3 |
Long-term Debt 21 | 132,000 |
Long-term Debt 22 | 176,000 |
Long-term Debt 23 | 75,000 |
Long-term Debt 24 | 132,000 |
Long-term Debt 25 | 18,535 |
Long-term Debt 26 | 7,572 |
Long-term Debt 27 | 0 |
Long-term Debt 28 | 7,500 |
Long-term Debt 29 | 0 |
Long-term Debt 30 | 151,893 |
Long-term Debt 31 | 479,564 |
Long-term Debt 32 | 224,223 |
Long-term Debt 33 | 6,164,964 |
Long-term Debt 34 | $6,183,499 |
DEFERRED_REVENUE_Narrative_Det
DEFERRED REVENUE (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
D | |
Deferred Revenue 1 | 2.50% |
Deferred Revenue 2 | $4,950,000 |
Deferred Revenue 3 | 3,916 |
Deferred Revenue 4 | 15,932 |
Deferred Revenue 5 | 23,943 |
Deferred Revenue 6 | 102,350 |
Deferred Revenue 7 | 7,587 |
Deferred Revenue 8 | 23,416 |
Deferred Revenue 9 | 50,677 |
Deferred Revenue 10 | 160,767 |
Deferred Revenue 11 | 1,452,532 |
Deferred Revenue 12 | 1,350,182 |
Deferred Revenue 13 | 30 |
Deferred Revenue 14 | 12.00% |
Deferred Revenue 15 | 462,241 |
Deferred Revenue 16 | 247,042 |
Deferred Revenue 17 | 180,000 |
Deferred Revenue 18 | 204,000 |
Deferred Revenue 19 | 200,000 |
Deferred Revenue 20 | 173,913.04 |
Deferred Revenue 21 | 0.35 |
Deferred Revenue 22 | 61,697 |
Deferred Revenue 23 | 195,805 |
Deferred Revenue 24 | 4,799,298 |
Deferred Revenue 25 | 4,661,371 |
Deferred Revenue 26 | $17,878 |
ACCRUED_RECLAMATION_COSTS_Narr
ACCRUED RECLAMATION COSTS (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Accrued Reclamation Costs 1 | $13,000,000 |
Accrued Reclamation Costs 2 | 9,100,000 |
Accrued Reclamation Costs 3 | $10,100,000 |
Accrued Reclamation Costs 4 | 2.50% |
Accrued Reclamation Costs 5 | 12.53% |
Accrued Reclamation Costs 6 | 100.00% |
Accrued Reclamation Costs 7 | 100.00% |
DERIVATIVE_INSTRUMENTS_Narrati
DERIVATIVE INSTRUMENTS (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments 1 | $16,106,691 |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stock-based Compensation 1 | 4,431,744 |
Stock-based Compensation 2 | $3,842 |
Stock-based Compensation 3 | 23,209 |
Stock-based Compensation 4 | 13,075 |
Stock-based Compensation 5 | 62,597 |
Stock-based Compensation 6 | 0 |
Stock-based Compensation 7 | 6,750 |
Stock-based Compensation 8 | $0.03 |
Stock-based Compensation 9 | 0 |
Stock-based Compensation 10 | 33,333 |
Stock-based Compensation 11 | 56,634 |
Stock-based Compensation 12 | 206,750 |
Stock-based Compensation 13 | 6,539 |
Stock-based Compensation 14 | 210,525 |
Stock-based Compensation 15 | 518,650 |
Stock-based Compensation 16 | 171,053 |
Stock-based Compensation 17 | 421,403 |
Stock-based Compensation 18 | 171,053 |
Stock-based Compensation 19 | 421,403 |
Stock-based Compensation 20 | 26,250 |
Stock-based Compensation 21 | $78,750 |
Stock-based Compensation 22 | 0 |
Stock-based Compensation 23 | 790,721 |
Stock-based Compensation 24 | 3,592,179 |
BASIC_AND_DILUTED_LOSS_PER_SHA2
BASIC AND DILUTED LOSS PER SHARE (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Basic And Diluted Loss Per Share 1 | 12,568,862 |
Basic And Diluted Loss Per Share 2 | 8,474,660 |
Basic And Diluted Loss Per Share 3 | 15,333,350 |
Basic And Diluted Loss Per Share 4 | 40,000,000 |
Basic And Diluted Loss Per Share 5 | $1.10 |
Basic And Diluted Loss Per Share 6 | $0.38 |
CONCENTRATIONS_Narrative_Detai
CONCENTRATIONS (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Concentrations 1 | 100.00% |
SUBSEQUENT_EVENTS_Narrative_De
SUBSEQUENT EVENTS (Narrative) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events 1 | $300,000 |
Subsequent Events 2 | 15.00% |
Subsequent Events 3 | 100,000 |
Subsequent Events 4 | 20,000,000 |
Subsequent Events 5 | $0.02 |
Schedule_of_Inventory_Current_
Schedule of Inventory, Current (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Inventory Schedule Of Inventory, Current 1 | $964,381 |
Inventory Schedule Of Inventory, Current 2 | 2,018,795 |
Inventory Schedule Of Inventory, Current 3 | 6,642 |
Inventory Schedule Of Inventory, Current 4 | 72,815 |
Inventory Schedule Of Inventory, Current 5 | 426,891 |
Inventory Schedule Of Inventory, Current 6 | 441,582 |
Inventory Schedule Of Inventory, Current 7 | 1,397,914 |
Inventory Schedule Of Inventory, Current 8 | 2,533,192 |
Inventory Schedule Of Inventory, Current 9 | 4,003,790 |
Inventory Schedule Of Inventory, Current 10 | 4,412,151 |
Inventory Schedule Of Inventory, Current 11 | 5,401,704 |
Inventory Schedule Of Inventory, Current 12 | $6,945,343 |
Schedule_of_Property_Plant_and
Schedule of Property, Plant and Equipment (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Property And Equipment Schedule Of Property, Plant And Equipment 1 | $87,114 |
Property And Equipment Schedule Of Property, Plant And Equipment 2 | 87,114 |
Property And Equipment Schedule Of Property, Plant And Equipment 3 | 2,071,618 |
Property And Equipment Schedule Of Property, Plant And Equipment 4 | 2,071,618 |
Property And Equipment Schedule Of Property, Plant And Equipment 5 | 468,034 |
Property And Equipment Schedule Of Property, Plant And Equipment 6 | 468,034 |
Property And Equipment Schedule Of Property, Plant And Equipment 7 | 1,841,080 |
Property And Equipment Schedule Of Property, Plant And Equipment 8 | 1,841,080 |
Property And Equipment Schedule Of Property, Plant And Equipment 9 | 2,708,870 |
Property And Equipment Schedule Of Property, Plant And Equipment 10 | 2,708,870 |
Property And Equipment Schedule Of Property, Plant And Equipment 11 | 42,507,786 |
Property And Equipment Schedule Of Property, Plant And Equipment 12 | 42,457,786 |
Property And Equipment Schedule Of Property, Plant And Equipment 13 | 49,684,502 |
Property And Equipment Schedule Of Property, Plant And Equipment 14 | 49,634,502 |
Property And Equipment Schedule Of Property, Plant And Equipment 15 | -6,943,767 |
Property And Equipment Schedule Of Property, Plant And Equipment 16 | -6,648,074 |
Property And Equipment Schedule Of Property, Plant And Equipment 17 | 42,740,735 |
Property And Equipment Schedule Of Property, Plant And Equipment 18 | $42,986,428 |
Schedule_of_Longterm_Debt_Inst
Schedule of Long-term Debt Instruments (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Long-term Debt Schedule Of Long-term Debt Instruments 1 | $23,257,826 |
Long-term Debt Schedule Of Long-term Debt Instruments 2 | 23,257,826 |
Long-term Debt Schedule Of Long-term Debt Instruments 3 | -23,257,826 |
Long-term Debt Schedule Of Long-term Debt Instruments 4 | -23,257,826 |
Long-term Debt Schedule Of Long-term Debt Instruments 5 | 0 |
Long-term Debt Schedule Of Long-term Debt Instruments 6 | $0 |
Schedule_of_Change_in_Asset_Re
Schedule of Change in Asset Retirement Obligation (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Accrued Reclamation Costs Schedule Of Change In Asset Retirement Obligation 1 | $3,597,968 |
Accrued Reclamation Costs Schedule Of Change In Asset Retirement Obligation 2 | 3,195,497 |
Accrued Reclamation Costs Schedule Of Change In Asset Retirement Obligation 3 | 338,744 |
Accrued Reclamation Costs Schedule Of Change In Asset Retirement Obligation 4 | 402,471 |
Accrued Reclamation Costs Schedule Of Change In Asset Retirement Obligation 5 | 3,936,712 |
Accrued Reclamation Costs Schedule Of Change In Asset Retirement Obligation 6 | $3,597,968 |
Schedule_of_Sharebased_Compens
Schedule of Share-based Compensation, Stock Options, Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 1 | $4,431,744 | ' |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 2 | 18 | ' |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 3 | 0 | ' |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 4 | 0 | ' |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 5 | 0 | ' |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 6 | 0 | ' |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 7 | 0 | ' |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 8 | 0 | ' |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 9 | 4,431,744 | ' |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 10 | 18 | ' |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 1 | ' | 4,438,494 |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 2 | ' | 18 |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 3 | ' | 0 |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 4 | ' | 0 |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 5 | ' | 0 |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 6 | ' | 0 |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 7 | ' | -6,750 |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 8 | ' | 0.16 |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 9 | ' | 4,431,744 |
Stock-based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 10 | ' | $18 |
Schedule_of_Disclosure_of_Shar
Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stock-based Compensation Schedule Of Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 1 | $4,431,744 |
Stock-based Compensation Schedule Of Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 2 | 1.9 |
Stock-based Compensation Schedule Of Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 3 | 18 |
Stock-based Compensation Schedule Of Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 4 | 0 |
Stock-based Compensation Schedule Of Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 5 | 4,224,994 |
Stock-based Compensation Schedule Of Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 6 | 2 |
Stock-based Compensation Schedule Of Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 7 | 18 |
Stock-based Compensation Schedule Of Disclosure Of Share-based Compensation Arrangements By Share-based Payment Award 8 | $0 |
Schedule_of_Nonvested_Share_Ac
Schedule of Nonvested Share Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Stock-based Compensation Schedule Of Nonvested Share Activity 1 | $604,997 | ' |
Stock-based Compensation Schedule Of Nonvested Share Activity 2 | 10 | ' |
Stock-based Compensation Schedule Of Nonvested Share Activity 3 | 0 | ' |
Stock-based Compensation Schedule Of Nonvested Share Activity 4 | 0 | ' |
Stock-based Compensation Schedule Of Nonvested Share Activity 5 | -398,247 | ' |
Stock-based Compensation Schedule Of Nonvested Share Activity 6 | 0.08 | ' |
Stock-based Compensation Schedule Of Nonvested Share Activity 7 | 0 | ' |
Stock-based Compensation Schedule Of Nonvested Share Activity 8 | 0 | ' |
Stock-based Compensation Schedule Of Nonvested Share Activity 9 | 206,750 | ' |
Stock-based Compensation Schedule Of Nonvested Share Activity 10 | 11 | ' |
Stock-based Compensation Schedule Of Nonvested Share Activity 1 | ' | 811,747 |
Stock-based Compensation Schedule Of Nonvested Share Activity 2 | ' | 11 |
Stock-based Compensation Schedule Of Nonvested Share Activity 3 | ' | 0 |
Stock-based Compensation Schedule Of Nonvested Share Activity 4 | ' | 0 |
Stock-based Compensation Schedule Of Nonvested Share Activity 5 | ' | -604,997 |
Stock-based Compensation Schedule Of Nonvested Share Activity 6 | ' | 0.09 |
Stock-based Compensation Schedule Of Nonvested Share Activity 7 | ' | 0 |
Stock-based Compensation Schedule Of Nonvested Share Activity 8 | ' | 0 |
Stock-based Compensation Schedule Of Nonvested Share Activity 9 | ' | 206,750 |
Stock-based Compensation Schedule Of Nonvested Share Activity 10 | ' | $11 |
Schedule_of_Earnings_Per_Share
Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 1 | ($2,280,098) | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 2 | -2,282,004 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 3 | 116,871,503 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 4 | 115,131,697 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 5 | 0 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 6 | 0 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 7 | 116,871,503 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 8 | 115,131,697 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 9 | -0.02 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 10 | -0.02 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 11 | -0.02 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 12 | -0.02 | ' |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 1 | ' | -6,455,500 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 2 | ' | -7,187,568 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 3 | ' | 116,871,503 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 4 | ' | 114,695,976 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 5 | ' | 0 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 6 | ' | 0 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 7 | ' | 116,871,503 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 8 | ' | $114,695,976 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 9 | ' | -0.06 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 10 | ' | -0.06 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 11 | ' | -0.06 |
Basic And Diluted Loss Per Share Schedule Of Earnings Per Share, Basic And Diluted 12 | ' | -0.06 |
Schedule_of_Fair_Value_by_Bala
Schedule of Fair Value, by Balance Sheet Grouping (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 1 | $686,476 |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 2 | 686,476 |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 3 | 37,344 |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 4 | 37,344 |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 5 | 4,884,846 |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 6 | 2,385,453 |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 7 | 11,434,283 |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 8 | 16,106,691 |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 9 | 6,164,964 |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 10 | 23,257,826 |
Fair Value Of Financial Instruments Schedule Of Fair Value, By Balance Sheet Grouping 11 | $609,007 |