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Organization, Consolidation and Presentation of Financial Statements
3 Months Ended
Dec. 31, 2011
Organization, Consolidation and Presentation of Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

NOTE 1.   ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Placer Del Mar, Ltd. (the “Company”) was incorporated in the State of Nevada on May 13, 2005, and its year-end is June 30.  The Company is “An Exploration Stage Company” as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 918, Development Stage Entities. The Company obtained a mineral rights option agreement on June 3, 2005.  The Company has ongoing exploration activities on the property and is considered to be a Smaller Reporting Company for U.S. Securities and Exchange Commission filing purposes.  Management believes that based upon the definition of a Shell Company set forth in Footnote 172 to Amended Rule 144,  the Company is not a Shell Company because they have a limited operating history, were a start-up company,  and as such, does not have “no or nominal operations.  Specifically, the Company’s inception date was May, 13th 2005.  The Company began operations in September of 2006 and has had ongoing operations and has spent $208,695 to date on operations to confirm viable minerals within the claim. These funds have been expensed due to PCAOB and GAAP rules.  The Company will continue to dedicate funds through ongoing trenching seeking to identify and exploit any minerals within the mining claim asset. Further the Company paid an upfront fee of $2,000 for the Placer Del Mar claim, and retain 99% of the net smelter returns from any viable minerals within the claim. It is subject to a net smelter return of 1% to Mr. Almarez.

 

On December 8, 2010 the Company entered into a Mineral Extraction Agreement with Roca Cantera Y Marmol, Canteras Acabados Finos related to the extraction of only Mexican Shellstone-Limestone (“Conchuela”) on the property.  As of December 31, 2011 the Company had reported revenue of $197,927 from the Conchuela extraction. 

 

The Company is engaged in the exploration of mineral properties with a view to exploit any mineral deposits they discover that demonstrate economic viability.  The Company will continue our operations in Phase One exploring for mainly gold, tungsten, perlite, sulfides, titanium, and silver while Roca Cantera Y Marmol continues its mineral extraction of Conchuela. 

 

NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Accounting

 

The Company’s financial statements are prepared using the accrual method of accounting. 

 

Basic Earnings (loss) per Share

 

The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share.  ASC 260 specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock.  The Company has adopted the provisions of ASC 260 effective May 13, 2005 (inception). 

 

Basic net earnings (loss) per share amounts are computed by dividing the net earnings (loss) by the weighted average number of common shares outstanding.  Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items in the Company.

 

Cash Equivalents

 

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

 

Mineral Property Costs

 

The Company continues to conduct exploration and trenching activities that began on September 27, 2006 and has realized $197,927 in revenues from its ongoing operations. All exploration expenditures are expensed as incurred.  Costs of acquisition and option costs of mineral rights are capitalized upon acquisition. Mine development costs incurred to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. If the Company does not continue with exploration after the completion of the feasibility study, the mineral rights will be expensed at that time. Costs of abandoned projects are charged to mining costs including related property and equipment costs. To determine if these costs are in excess of their recoverable amount periodic evaluation of carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, Impairment or Disposal of Long-Lived Assets.

 

Use of Estimates and Assumptions

 

The preparation of financial statements in conformity with generally accepted accounting principles requires 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 amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In accordance with FASB 16 all adjustments are normal and recurring. 

 

Income Taxes

 

Income taxes are provided in accordance with ASC 740, Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards.  Deferred tax expense (benefit) results  from  the net  change  during  the  year of  deferred  tax  assets  and liabilities.

 

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

Recent Accounting Pronouncements

 

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

NOTE 3.   GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  While the Company has reported revenue of $197,927 since inception, the Company generated a net loss of $35,625 during the period from May 13, 2005 (inception) to December 31, 2011.  This condition raises substantial doubt about the Company’s ability to continue as a going concern.  The Company will require additional funding for exploration beyond Phase 1, this additional funding may be raised through debt or equity offerings.  Management has yet to decide what type of offering the Company will use or how much capital the Company will attempt to raise.  There is no guarantee that the Company will be able to raise any capital through any type of offerings.