Stockholders' Equity

9 Months Ended

Sep. 30, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

During the nine months ended September 30, 2014, the Company issued 904,836 shares of common stock from the conversion of 1,493 shares of Series B Convertible Preferred Stock. There were no conversions of A-1 or A-2 Preferred Shares during the nine months ended September 30, 2014. The Company also declared and issued 2,254,599 shares of common stock at par value as dividends on outstanding shares of convertible preferred stock. In addition, 1,777,000 shares of restricted stock vested under the 2011 Equity Incentive Plan for the nine months ended September 30, 2014.

In May 2014, the Company issued 7,475,000 shares of common stock to investors at a price per share of $1.59. As a result of the offering, the Company received net cash proceeds of approximately $11.0 million. For additional information related to this offering please see our Prospectus Supplement filed with the Securities and Exchange Commission (“SEC”) on May 9, 2014.

During the nine months ended September 30, 2014, the Company entered into various agreements to purchase land and buildings near its mining and processing areas. The purchase price of all properties total $2,845,000. The price was comprised of $97,000 in cash payments and $2,748,000 in Company restricted common stock. The Company issued 1,402,651 restricted shares of common stock towards the purchase of these properties. No transfer of deed will take place prior to sellers receiving the proceeds from the sale of shares. As of September 30, 2014, no transfer of deed has occurred under the agreement. Accordingly, the related properties and equity issued were not given accounting consideration in the Company’s consolidated financial statements.

On June 26, 2014, the Company closed escrow on the purchase of additional land lots. The purchase included the issuance of 88,888 shares of common stock with a fair value of $149,332. On September 9, 2014, the Company closed escrow on the purchase of 435 acres of land. The purchase included the issuance of 468,750 shares of common stock with a fair value of $665,625.