0001580695-22-000006.txt : 20220114 0001580695-22-000006.hdr.sgml : 20220114 20220114162425 ACCESSION NUMBER: 0001580695-22-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 38 CONFORMED PERIOD OF REPORT: 20211130 FILED AS OF DATE: 20220114 DATE AS OF CHANGE: 20220114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Texas Mineral Resources Corp. CENTRAL INDEX KEY: 0001445942 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 870294969 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-53482 FILM NUMBER: 22532137 BUSINESS ADDRESS: STREET 1: 539 EL PASO STREET CITY: SIERRA BLANCA STATE: TX ZIP: 79851 BUSINESS PHONE: (915) 369-2133 MAIL ADDRESS: STREET 1: 539 EL PASO STREET CITY: SIERRA BLANCA STATE: TX ZIP: 79851 FORMER COMPANY: FORMER CONFORMED NAME: Texas Rare Earth Resources Corp. DATE OF NAME CHANGE: 20110128 FORMER COMPANY: FORMER CONFORMED NAME: Standard Silver Corp. DATE OF NAME CHANGE: 20080924 10-Q 1 tmrc-10q_113021.htm QUARTERLY REPORT
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UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended November 30, 2021

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______to ______

 

Commission file number: 000-53482

 

TEXAS MINERAL RESOURCES CORP. 

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

 

87-0294969

(State of other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

539 El Paso Street

 

 

Sierra Blanca, Texas

 

79851

(Address of Principal Executive Offices)

 

(Zip Code)

 

 

 

(915) 369-2133

(Registrant’s Telephone Number, including Area Code)

 

(Former Name, Former Address and Former Fiscal
Year, if Changed Since Last Report)

 

Securities registered under Section 12(b) of the Exchange Act: None

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No

 

Number of shares of issuer’s common stock outstanding as of January 10, 2022: 72,006,514.

 

 

 

 

 

 

Table of Contents

 

 

Part I

Page

Item 1

Financial Statements (Unaudited)

3

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

12

Item 3

Quantitative and Qualitative Disclosures About Market Risk

18

Item 4

Controls and Procedures

18

 

Part II

 

Item 1

Legal Proceedings

19

Item 1A.

Risk Factors

19

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

19

Item 3

Defaults upon Senior Securities

19

Item 4

Mine Safety Disclosures

19

Item 5

Other Information

19

Item 6

Exhibits

20

 

 

 

Signatures

22

 

2

 

 

PART I

 

Item 1. Financial Statements

 

TEXAS MINERAL RESOURCES CORP.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

   November 30,   August 31, 
   2021   2021 
ASSETS          
           
CURRENT ASSETS          
Cash and cash equivalents  $4,863,190   $5,106,653 
Prepaid expenses and other current assets   28,774    73,029 
           
Total current assets   4,891,964    5,179,682 
           
Property and equipment, net   29,088    30,834 
Mineral properties, net   181,755    181,755 
Deposits   12,620    12,620 
           
TOTAL ASSETS  $5,115,427   $5,404,891 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
           
CURRENT LIABILITIES          
Accounts payable and accrued liabilities  $69,502   $191,394 
Accounts payable - related party   10,000    10,000 
           
Total current liabilities   79,502    201,394 
           
Total liabilities   79,502    201,394 
           
COMMITMENTS AND CONTINGENCIES          
           
SHAREHOLDERS’ EQUITY          
Preferred stock, par value $0.001; 10,000,000 shares authorized, no shares issued and oustanding as of November 30, 2021 and August 31, 2021        
Common stock, par value $0.01; 100,000,000 shares authorized, 71,975,296 and 71,934,065 shares issued and oustanding as of November 30, 2021 and August 31, 2021, respectively   719,753    719,341 
Additional paid-in capital   41,503,356    41,332,478 
Accumulated deficit   (37,187,184)   (36,848,322)
           
Total shareholders’ equity   5,035,925    5,203,497 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $5,115,427   $5,404,891 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

3

 

 

TEXAS MINERAL RESOURCES CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended November 30, 2021 and 2020

(Unaudited)

 

   2021   2020 
OPERATING EXPENSES          
Exploration costs  $71,158   $65,778 
General and administrative expenses   339,505    325,277 
           
Total operating expenses   410,663    391,055 
           
LOSS FROM OPERATIONS   (410,663)   (391,055)
           
OTHER INCOME (EXPENSE)          
Interest income   1,625    1,372 
Grant income, net of expenses   70,176    50,000 
           
Total other income (expense)   71,801    51,372 
           
NET LOSS  $(338,862)  $(339,683)
           
Net loss per share:          
Basic and diluted net loss per share  $(0.00)  $(0.00)
           
Weighted average shares outstanding:          
Basic and diluted   71,956,719    71,346,419 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

4

 

 

TEXAS MINERAL RESOURCES CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended November 30, 2021 and 2020

(Unaudited)

 

   2021   2020 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net loss  $(338,862)  $(339,683)
Adjustments to reconcile net loss to net cash          
 provided by (used in) operating activities:          
Depreciation   1,746     
Stock based compensation   171,290    190,367 
Changes in current assets and liabilities:          
Prepaid expenses and other current assets   44,255    37,540 
Accounts payable and accrued liabilities   (121,892)   (49,058)
           
Net cash provided by (used in) operating activities   (243,463)   (160,834)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Advances from related parties       5,500 
Proceeds from exercise of common stock warrants       24,500 
           
Net cash provided by financing activities       30,000 
           
NET CHANGE IN CASH AND CASH EQUIVALENTS   (243,463)   (130,834)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   5,106,653    2,746,451 
           
CASH AND CASH EQUIVALENTS, END OF PERIOD  $4,863,190   $2,615,617 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION          
           
Interest paid  $   $ 
           
Taxes paid  $   $ 
           
NON-CASH INVESTING AND FINANCING ACTIVITIES:          
           
Common stock issued as payment of accrued expenses  $   $92,500 

 

The accompanying notes are an integral part of these financial statements.

 

5

 

 

TEXAS MINERAL RESOURCES CORP.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For the Three Months Ended November 30, 2021 and 2020

(Unaudited)

 

                   Additional         
   Preferred Stock   Common Stock   Paid-in   Accumulated     
   Shares   Amount   Shares   Amount   Capital   Deficit   Total 
Balance at August 31, 2021      $    71,934,065   $719,341   $41,332,478   $(36,848,322)  $5,203,497 
                                    
Options issued for services                   73,788        73,788 
Common stock issued for services           41,231    412    97,090         97,502 
Net loss                       (338,862)   (338,862)
                                    
Balance at November 30, 2021      $    71,975,296   $719,753   $41,503,356   $(37,187,184)  $5,035,925 
                                    
Balance at August 31, 2020      $    71,323,278   $713,233   $40,376,847   $(38,892,524)  $2,197,556 
                                    
Stock based compensation                   190,367        190,367 
Common stock issued as payment of accrued director’s fees           61,936    619    91,881        92,500 
Warrant conversion                   24,500        24,500 
Net loss                       (339,683)   (339,683)
                                    
Balance at November 30, 2020      $    71,385,214   $713,852   $40,493,228   $(39,232,207)  $1,974,873 

 

The accompanying notes are an integral part of these financial statements.

 

6

 

 

Texas Mineral Resources Corp.

Notes to Interim Consolidated Financial Statements

November 30, 2021

(Unaudited)

 

NOTE 1 – GENERAL

 

Basis of Presentation

 

The accompanying unaudited interim consolidated financial statements of Texas Mineral Resources Corp. (“we”, “us”, “our”, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in our annual report on Form 10-K, for the year ended August 31, 2021, dated November 29, 2021 as filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2021 as reported in our annual report on Form 10-K, have been omitted.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of Texas Mineral Resources Corp and its proportionate interest in the assets, liabilities, and operations of Round Top Mountain Development Company, LLC (“RTMD”). All significant intercompany balances and transactions have been eliminated.

 

NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS

 

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt – Debit with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share (“EPS”) calculation in certain areas. This ASU is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. Management does not expect the adoption of this standard to have a significant impact on the Company’s financial position, results of operations or cash flows.

 

NOTE 3 – JOINT VENTURE ARRANGEMENTS

 

In August 2018, the Company and Morzev Pty. Ltd. (“Morzev”) entered into an agreement (the “2018 Option Agreement”) whereby Morzev was granted the exclusive right to earn and acquire a 70% interest in the Company’s Round Top Project (“Project” or “Round Top” or “Round Top Project”) by financing $10 million of expenditures in connection with the Project, increasable to an 80% interest for an additional $3 million payment to the Company. Morzev began operating as USA Rare Earth, LLC (“USARE”) and in May 2019 notified the Company that it was nominating USARE as the optionee under the terms of the 2018 Option Agreement. In August 2019, the Company and USARE entered into an amended and restated option agreement as further amended on June 29, 2020 (the “2019 Option Agreement” and collectively with the 2018 Option Agreement, the “Option Agreement”), whereby the Company restated its agreement to grant USARE the exclusive right to earn and acquire a 70% interest, increasable to an 80% interest, in the Round Top Project. The 2019 Option Agreement has substantially similar terms to the 2018 Option Agreement.

 

On May 17, 2021, and in accordance with the terms of the Option Agreement, the Company and USARE entered into a contribution agreement (“Contribution Agreement”) whereby the Company and USARE contributed assets to RTMD, a wholly-owned subsidiary of the Company, in exchange for their ownership interests in RTMD, of which the Company now owns membership interests equating to 20% of RTMD and USARE owns membership interests equating to 80% of RTMD. Concurrently therewith, the Company and USARE as the two members entered into a limited liability company agreement (“Operating Agreement”) governing the operations of RTMD which contains customary and industry standard terms as contemplated by the Option Agreement. USARE will serve as manager of RTMD and Mr. Gorski, on behalf of the Company, will serve as one of the three members of the management committee.

 

7

 

 

Texas Mineral Resources Corp.

Notes to Interim Consolidated Financial Statements

November 30, 2021

(Unaudited)

 

NOTE 3 – JOINT VENTURE ARRANGEMENTS (CONTINUED)

 

In connection with USARE meeting its obligations to acquire a 70% interest in the Round Top Project and exercising its right to an additional 10% interest, the Company received total consideration of approximately $3,728,000, consisting of the $3 million upon exercise of the option and approximately $728,000 in previous advances to the Company by USARE, and derecognized 80% of the carrying amount of mineral properties, or approximately $402,000. The resulting gain on sale of interest in mineral properties in the amount of approximately $3,326,000 was recognized during the quarter ended May 31, 2021.

 

Upon entry into the Contribution Agreement, the Company assigned the following contracts and assets to RTMD in exchange for its 20% membership interest in RTMD:

 

 

the assignment and assumption agreement with respect to the mineral leases from the Company to RTMD;

 

 

the assignment and assumption agreement with respect to the surface lease from the Company to RTMD;

 

 

the assignment and assumption agreement with respect to the surface purchase option from the Company to RTMD;

 

 

the assignment and assumption agreement with respect to the water lease from the Company to RTMD; and

 

 

the bill of sale and assignment agreement of existing data with respect to RTMD owned by the Company.

 

and USARE assigned the following assets to RTMD (or the Company, as applicable) for its 80% membership interest in RTMD:

 

 

cash to RTMD to continue to fund RTMD operations in the amount of approximately $3,761,750 comprising the balance of the $10 million required expenditure to earn a 70% interest in RTMD;

 

 

cash in the amount of $3 million to the Company upon exercise of the USARE option to acquire from the Company an additional 10% interest in RTMD, resulting in the aggregate ownership interest of 80% in RTMD;

 

 

bill of sale and assignment agreement of the Pilot Plant to RTMD;

 

 

the assignment and assumption regarding relevant contracts and permits with respect to RTMD; and

 

 

bill of sale and assignment agreement of existing data and intellectual property owned by USARE to RTMD.

 

The Company accounts for its interest in RTMD using the proportionate consolidation method, which is an exception available to entities in the extractive industries, thereby recognizing its pro-rata share of the assets, liabilities, and operations of RTMD in the appropriate classifications in the financial statements. Subsequent to the sale of an undivided 80% interest in RTMD, there was no significant activity in RTMD requiring recognition in the financial statements.

 

NOTE 4 – MINERAL PROPERTIES

 

As set forth in Note 3- Joint Venture Arrangements, the ownership of and obligations associated with the leases and options maintained with the Texas Land Office and other third parties were transferred to RTMD in May 2021. 

 

August 2010 Lease

 

On August 17, 2010, the Company executed a new mining lease with the Texas General Land Office covering Sections 7 and 18 of Township 7, Block 71 and Section 12 of Block 72, covering approximately 860 acres at Round Top Mountain in Hudspeth County, Texas. The mining lease issued by the Texas General Land Office gives the Company the right to explore, produce, develop, mine, extract, mill, remove, and market rare earth elements, all other base and precious metals, industrial minerals and construction materials and all other minerals excluding oil, gas, coal, lignite, sulfur, salt, and potash. The term of the lease is nineteen years so long as minerals are produced in paying quantities.

 

8

 

 

Texas Mineral Resources Corp.

Notes to Interim Consolidated Financial Statements

November 30, 2021

(Unaudited)

 

NOTE 4 – MINERAL PROPERTIES (CONTINUED)

 

Under the terms of the lease, the Company will pay the State of Texas a total lease bonus of $142,518. The Company paid $44,718 upon the execution of the lease, and will pay the remaining $97,800 upon submission of a supplemental plan of operations to conduct mining. Upon sale of any minerals removed from Round Top, the Company will pay the State of Texas a $500,000 minimum advance royalty.

 

Thereafter, if paying quantities of minerals are obtained, the Company will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals removed and sold. If paying quantities have not been obtained, the Company may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule: 

 

 

Per Acre
Amount

 

 

Total
Amount

 

September 2, 2020 – 2024

 

$

150

 

 

$

134,155

 

September 2, 2025 – 2029

 

 

200

 

 

 

178,873

 

 

In August 2021, our joint venture partner paid the State of Texas a delay rental to extend the term of the lease in an amount equal to $134,155.

 

November 2011 Lease

 

On November 1, 2011, the Company executed a mining lease with the State of Texas covering approximately 90 acres of land that is adjacent to the August 2010 Lease. Under the lease, the Company paid the State of Texas a lease bonus of $20,700 upon the execution of the lease. Upon the sale of minerals removed from Round Top, the Company will pay the State of Texas a $50,000 minimum advance royalty.

 

Thereafter, if paying quantities of minerals are obtained, the Company will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals. If paying quantities have not been obtained, the Company may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule:

 

 

Per Acre
Amount

 

 

Total
Amount

 

November 1, 2020 – 2024

 

$

150

 

 

$

13,500

 

November 1, 2025 – 2029

 

 

200

 

 

 

18,000

 

 

In August 2021, our joint venture partner paid the State of Texas a delay rental to extend the term of the lease in an amount equal to $13,500.

 

March 2013 Lease

 

On March 6, 2013, the Company purchased the surface lease at the Round Top Project, known as the West Lease, from the Southwest Wildlife and Range Foundation (since renamed the Rio Grande Foundation) for $500,000 cash and 1,063,830 shares of common stock valued at $500,000. The Company also agreed to support the Foundation through an annual payment of $45,000 for ten years to support conservation efforts within the Rio Grande Basin, particularly Lake Amistad, a large and well-known fishing lake near Del Rio, Texas. The West Lease comprises approximately 54,990 acres. Most importantly, the purchase of the surface lease provides the Company unrestricted surface access for the potential development and mining of the Round Top Project.

 

October 2014 Surface Option and Water Lease

 

On October 29, 2014, the Company announced the execution of agreements with the Texas General Land Office securing the option to purchase the surface rights covering the potential Round Top Project mine and plant areas and, separately, a lease to develop the water necessary for the potential Round Top Project mine operations. The option to purchase the surface rights covers approximately 5,670 acres over the mining lease and the additional acreage adequate to site all potential heap leaching and processing operations as currently anticipated by the Company. The Company may exercise the option for all or part of the option acreage at any time during the sixteen-year primary term of the mineral lease. The option can be maintained through annual payments of $10,000. The purchase price will be the appraised value of the surface at the time of option exercise. All annual payments have been made as of the date of this filing.

 

9

 

 

Texas Mineral Resources Corp.

Notes to Interim Consolidated Financial Statements

November 30, 2021

(Unaudited)

 

NOTE 4 – MINERAL PROPERTIES (CONTINUED)

 

The ground water lease secures the right to develop the ground water within a 13,120-acre lease area located approximately 4 miles from the Round Top deposit. The lease area contains five existing water wells. It is anticipated that all potential water needs for the Round Top Project mine operations would be satisfied by the existing wells covered by this water lease. This lease terms include an annual minimum production payment of $5,000 prior to production of water for the operation. After initiation of production, the Company will pay $0.95 per thousand gallons or $20,000 annually, whichever is greater. This lease remains in effect so long as the mineral lease is in effect. The minimum production payment for all fiscal years have been made as of the date of this filing.

 

Santa Fe Gold Corporation

 

On November 8, 2021, the Company entered into a mineral exploration and option agreement with Santa Fe Gold Corporation (“Santa Fe”). Under the agreement, the Company and Santa Fe plan to pursue, negotiate and subsequently enter into a joint venture agreement to jointly explore and develop a target silver property to be selected by the Company among patented and unpatented mining claims held by Santa Fe within the Black Hawk Mining District in Grant County, New Mexico. Completion of a joint venture agreement is subject to the successful outcome of a multi-phase exploration plan leading to a bankable feasibility study to be undertaken in the near future by the Company. Under the expected terms of the joint venture agreement, the Company would be project operator and initially own 50.5% of the joint venture while Santa Fe would initially own 49.5%. Additional terms of the joint venture are to be negotiated between the Company and Santa Fe. 

 

Under the terms of the agreement, the Company plans to conduct a district-wide evaluation among the patented and unpatented claims held by Santa Fe, consisting of geologic mapping, sampling, trenching, radiometric surveying, geophysics, drilling and/or other methods as warranted. Based on the district-wide evaluation, the Company will designate one 80-acre tract as the “project area” and commence detailed exploration work. The property covered in the agreement is approximately 1,300 acres and covers approximately 75% of the known mining district. The area to be studied also includes a two-mile radius “area of interest.” The agreement provides the Company with the option to designate any properties within the “area of interest” as “project area” properties. The term of the option is for so long as the Company continues to conduct exploration activities in the Project Area and can be exercised on 60 days’ notice to Santa Fe.

 

Additionally, on November 8, 2021, the Company entered into a financing and purchase option agreement with Greentech Minerals Holdings, Inc. (“Greentech”). Under the agreement, Greentech is responsible for funding initial exploration activities and the bankable feasibility study, estimated to cost approximately $6.5 million, for the Santa Fe project exploration. It is contemplated that the bankable feasibility study will be designed to proceed in five tranches, each based on the success of the previous. It is estimated that completion of all tranches, if successful, would take twelve to fifteen months, depending on variables such as data analysis, weather and permitting.

 

Upon successful completion of the study, Greentech will be entitled to received 20% of the Company’s initial equity in the proposed joint venture with Santa Fe, equal to approximately 10.1% of the total equity of the joint venture. In addition, assuming Greentech exercises its option to participate in funding the Santa Fe project capital expenditures, currently anticipated to be approximately $15 million, it will be entitled to receive another 20% of the Company’s initial equity in the future joint venture, equal to approximately an additional 10.1%. In total, Greentech, in exchange for its funding, has the ability to earn at least 20.2% membership interest in the potential joint venture with Santa Fe assuming successful completion of the overall first project.

 

NOTE 5 – SHAREHOLDERS’ EQUITY

 

The Company’s authorized capital stock consists of 100,000,000 shares of common stock, with a par value of $0.01 per share, and 10,000,000 preferred shares with a par value of $0.001 per share.

 

All shares of common stock have equal voting rights and, when validly issued and outstanding, are entitled to one non-cumulative vote per share in all matters to be voted upon by shareholders. Shares of common stock have no pre-emptive, subscription, conversion or redemption rights and may be issued only as fully paid and non-assessable shares. Holders of common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by the Company’s Board of Directors (the “Board”) out of funds legally available. In the event of a liquidation, dissolution or winding up of the affairs of the Company, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment or provision for all liabilities and any preferential liquidation rights of any preferred stock then outstanding.

 

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Texas Mineral Resources Corp.

Notes to Interim Consolidated Financial Statements

November 30, 2021

(Unaudited)

 

NOTE 5 – SHAREHOLDERS’ EQUITY (CONTINUED)

 

In October 2021, we issued 41,231 shares of common stock related to Director fees earned and expensed during the year ended August 31, 2021.

 

During the quarter ended November 30, 2021, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $41,502 for director’s fees earned during the quarter. The Company issued the related 31,218 shares of common stock in December 2021.

 

During the quarter ended November 30, 2021, the Company granted a total of 43,500 stock options with a fair value of $73,788 on the date of grant to a consultant. The fair value of the options was determined using the Black-Scholes option-pricing model. The weighted average assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.25% (ii) estimated volatility of 201.75% (iii) dividend yield of 0.00% and (iv) expected life of all options of 5 years. The Company recognized the full $73,788 as compensation expense during the three months ended November 30, 2021.

 

In January 2020, the Company entered into three separate consulting agreements for total consideration of 699,999 shares of common stock (233,333 per agreement). The common stock underlying the agreements had a total value of $448,000, based on the $0.64 quoted market price of the common stock on the agreement date. The right to receive the common stock is subject to ratable vesting over a 24-month period and at November 30, 2021, 641,665 shares had vested and 87,501 had been issued. The Company recognized approximately $56,000 of compensation expense under these consulting agreements during both the three months ended November 30, 2021 and 2020, which is included in general and administrative expenses in the accompanying consolidated statements of operations. The consultants have requested that the Company hold the remaining shares issuable under the agreements in trust to allow the consultants to request their shares as they vest. As of November 30, 2021, unrecognized stock based compensation related to the agreements totaled $37,333 which will be expensed in the next quarter.

 

NOTE 6 – GRANT INCOME

 

Grants received from government and other agencies in advance of a specific project are deferred and recognized as other income in the statements of operations in the period they are earned and the related project costs are incurred. For the three months ended November 30, 2021 and 2020, the Company recognized $374,633 and $50,000, respectively, of grant income which is presented in other income, net of grant related expenses totaling $304,457 and $0, respectively.

 

NOTE 7 – SUBSEQUENT EVENTS

 

As a part of our obligation for our 20% ownership in the joint venture as disclosed in Note 3, on December 2, 2021 we contributed approximately $305,000 to the joint venture in accordance with the Contribution Agreement between the Company and USARE.

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

In this Quarterly Report on Form 10-Q, unless the context requires otherwise, references to “Texas Mineral Resources Corp,” “the Company” “we,” “our” or “us” refer to Texas Mineral Resources Corp. You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and related notes appearing elsewhere in this quarterly report. This Quarterly Report on Form 10-Q may also contain statistical data and estimates we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified their data.

 

Forward-Looking Statements

 

This Quarterly Report on Form 10-Q and the exhibits attached hereto contain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). Such forward-looking statements concern our anticipated results and developments in our operations in future periods, planned exploration and development of our properties, plans related to our business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q, include, but are not limited to:

 

 

the progress, potential and uncertainties of the rare-earth exploration plans at our Round Top project in Hudspeth County, Texas (the “Round Top Project” or “Round Top”);

 

 

timing for a completed feasibility study for the Round Top Project;

 

 

the success of getting the necessary permits for future Round Top drill programs and project development;

 

 

success of RTMD (as defined below) in developing the Round Top Project, including without limitation raising sufficient capital;

 

 

expectations regarding our ability to raise capital and to continue our exploration plans on our properties (either to fund our proportionate expenditures in the Round Top Project as a member of RTMD or otherwise);

 

 

plans regarding anticipated expenditures at the Round Top Project; and

 

 

plans to enter into a joint venture agreement with Santa Fe and ability to fund such potential exploration and development project.

 

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation:

 

 

risks associated with our history of losses and need for additional financing;

 

 

risks associated with our limited operating history;

 

 

risks associated with our properties all being in the exploration stage;

 

 

risks associated with our lack of history in producing metals from our properties;

 

 

risks associated with our inability to fund our proportionate expenditures in the Round Top Project as a member of RTMD which will result in dilution of our membership interest in RTMD;

 

 

risks associated with our need for additional financing to develop a producing mine, if warranted;

 

 

risks associated with the potential Santa Fe joint venture arrangement;

 

 

risks associated with our exploration activities not being commercially successful;

 

12

 

 

 

risks associated with increased costs affecting our financial condition;

 

 

risks associated with a shortage of equipment and supplies adversely affecting our ability to operate;

 

 

risks associated with mining and mineral exploration being inherently dangerous;

 

 

risks associated with mineralization estimates;

 

 

risks associated with changes in mineralization estimates affecting the economic viability of our properties;

 

 

risks associated with uninsured risks;

 

 

risks associated with mineral operations being subject to market forces beyond our control;

 

 

risks associated with fluctuations in commodity prices;

 

 

risks associated with permitting, licenses and approval processes;

 

 

risks associated with the governmental and environmental regulations;

 

 

risks associated with future legislation regarding the mining industry and climate change;

 

 

risks associated with potential environmental lawsuits;

 

 

risks associated with our land reclamation requirements;

 

 

risks associated with rare earth and beryllium mining presenting potential health risks;

 

 

risks related to title in our properties;

 

 

risks related to competition in the mining and rare earth elements industries;

 

 

risks related to economic conditions;

 

 

risks related to our ability to manage growth;

 

 

risks related to the potential difficulty of attracting and retaining qualified personnel;

 

 

risks related to our dependence on key personnel;

 

 

risks related to our SEC filing history; and

 

 

risks related to our securities.

 

This list is not exhaustive of the factors that may affect our forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under the section heading “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report and “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, 2021, filed with the SEC on November 29, 2021. Although we have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Except as required by law, we disclaim any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. We qualify all the forward-looking statements contained in this Quarterly Report by the foregoing cautionary statements.

 

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Overview

 

We are a mining company engaged in the business of the acquisition, exploration and development of mineral properties. We currently own a 20% membership interest in RTMD, which entity holds two mineral property leases with the Texas General Land Office to explore and develop a 950-acre rare earths project located in Hudspeth County, Texas, known as the Round Top Project. The leases, originally signed with primary terms of approximately 19 and 18 years, each currently have remaining terms of approximately eight years and provisions for automatic renewal if Round Top is in production. RTMD also holds prospecting permits covering 9,345 acres adjacent to the Round Top Project. The strategy of RTMD is to develop a metallurgical process to concentrate or otherwise extract the metals from the Round Top Project’s rhyolite, conduct additional engineering, design, geotechnical work, and permitting necessary for a bankable feasibility study and then to extract mineral resources from the Round Top Project. The Round Top Project has not established as of the date hereof that any of the properties contain any probable mineral reserves or proven mineral reserves under Item 1300 of Regulation S-K.

 

Rare earth elements (“REE”) are a group of chemically similar elements that usually are found together in nature – they are referred to as the “lanthanide series.” These individual elements have a variety of characteristics that are critical in a wide range of technologies, products, and applications and are critical inputs in existing and emerging applications. Without these elements, multiple high-tech technologies would not be possible. These technologies include:

 

 

cell phones,

 

 

computer and television screens,

 

 

electric vehicles,

 

 

clean energy technologies, such as hybrid and electric vehicles and wind power turbines,

 

 

fiber optics, lasers and hard disk drives,

 

 

numerous defense applications, such as guidance and control systems and global positioning systems,

 

 

advanced water treatment technology for use in industrial, military and

 

 

outdoor recreation applications

 

Because of these applications, global demand for REE is projected to steadily increase due to continuing growth in existing applications and increased innovation and development of new end uses. Interest in developing resources domestically has become a strategic necessity as there is limited production of these elements outside of China. Our ability to raise additional funds to continue to fund our participation interest in the Round Top Project may be impacted by future prices for REEs.

 

USA Rare Earth Agreement

 

In August 2018, the Company and Morzev Pty. Ltd. (“Morzev”) entered into an agreement (the “2018 Option Agreement”) whereby Morzev was granted the exclusive right to earn and acquire a 70% interest in the Company’s Round Top Project by financing $10 million of expenditures in connection with the Project, increasable to an 80% interest for an additional $3 million payment to the Company. Morzev began operating as USA Rare Earth, LLC (“USARE”) and in May 2019 notified the Company that it was nominating USARE as the optionee under the terms of the 2018 Option Agreement. In August 2019, the Company and USARE entered into an amended and restated option agreement as further amended on June 29, 2020 (the “2019 Option Agreement” and collectively with the 2018 Option Agreement, the “Option Agreement”), whereby the Company restated its agreement to grant USARE the exclusive right to earn and acquire a 70% interest, increasable to an 80% interest, in the Round Top Project. The 2019 Option Agreement has substantially similar terms to the 2018 Option Agreement:

 

On May 17, 2021, and in accordance with the terms of the Option Agreement, the Company and USARE entered into a contribution agreement (“Contribution Agreement”) whereby the Company and USARE contributed assets to Round Top Mountain Development (“RTMD”), a wholly-owned subsidiary of the Company, in exchange for their ownership interests in RTMD, of which the Company now owns membership interests equating to 20% of RTMD and USARE owns membership interests equating to 80% of RTMD. Concurrently therewith, the Company and USARE as the two members entered into a limited liability company agreement (“Operating Agreement”) governing the operations of RTMD which contains customary and industry standard terms as contemplated by the Option Agreement. USARE will serve as manager of RTMD and Mr. Gorski, on behalf of the Company, will serve as one of the three members of the management committee.

 

14

 

 

In connection with USARE meeting its obligations to acquire a 70% interest in the Round Top Project and exercising its right to an additional 10% interest, the Company received total consideration of approximately $3,728,000, consisting of the $3 million upon exercise of the option and approximately $728,000 in previous advances to the Company by USARE, and derecognized 80% of the carrying amount of mineral properties, or approximately $402,000. The resulting gain on sale of interest in mineral properties in the amount of approximately $3,326,000 is included as its own line item in other income (expense) was recognized during the quarter ended May 31, 2021.

 

Upon entry into the Contribution Agreement, the Company assigned the following contracts and assets to RTMD in exchange for its 20% membership interest in RTMD:

 

 

the assignment and assumption agreement with respect to the mineral leases from the Company to RTMD;

 

 

the assignment and assumption agreement with respect to the surface lease from the Company to RTMD;

 

 

the assignment and assumption agreement with respect to the surface purchase option from the Company to RTMD;

 

 

the assignment and assumption agreement with respect to the water lease from the Company to RTMD; and

 

 

the bill of sale and assignment agreement of existing data with respect to RTMD owned by the Company.

 

and USARE assigned the following assets to RTMD (or the Company, as applicable) for its 80% membership interest in RTMD:

 

 

cash to RTMD to continue to fund Round Top Project operations in the amount of approximately $3,761,750 comprising the balance of the $10 million required expenditure to earn a 70% interest in RTMD;

 

 

cash in the amount of $3 million to the Company upon exercise of the USARE option to acquire from the Company an additional 10% interest in RTMD, resulting in the aggregate ownership interest of 80% in RTMD;

 

 

bill of sale and assignment agreement of the Pilot Plant to RTMD;

 

 

the assignment and assumption regarding relevant contracts and permits with respect to RTMD; and

 

 

bill of sale and assignment agreement of existing data and intellectual property owned by USARE to RTMD.

 

The Company accounts for its interest in RTMD using the proportionate consolidation method, which is an exception available to entities in the extractive industries, thereby recognizing its pro-rate share of the assets, liabilities, and operations of RTMD in the appropriate classifications in the financial statements. Subsequent to the sale of an undivided 80% interest in the Round Top Project, there was no significant activity in RTMD requiring recognition in the financial statements.

 

Santa Fe Project

 

On November 8, 2021, the Company entered into a mineral exploration and option agreement with Santa Fe Gold Corporation (“Santa Fe”). Under the agreement, the Company and Santa Fe plan to pursue, negotiate and subsequently enter into a joint venture agreement to jointly explore and develop a target silver property to be selected by the Company among patented and unpatented mining claims held by Santa Fe within the Black Hawk Mining District in Grant County, New Mexico. Completion of a joint venture agreement is subject to the successful outcome of a multi-phase exploration plan leading to a bankable feasibility study to be undertaken in the near future by the Company. Under the terms of the joint venture agreement, the Company would be project operator and initially own 50.5% of the joint venture while Santa Fe would initially own 49.5%. Additional terms of the joint venture are to be negotiated between the Company and Santa Fe.

 

Under terms of the agreement, the Company plans to conduct a district-wide evaluation among the patented and unpatented claims held by Santa Fe, consisting of geologic mapping, sampling, trenching, radiometric surveying, geophysics, drilling and/or other methods as warranted. Based on the district-wide evaluation, the Company will designate one 80-acre tract as the “project area” and commence detailed exploration work. The property covered in the agreement is approximately 1,300 acres and covers approximately 75% of the known mining district. The area to be studied also includes a two-mile radius “area of interest.” The agreement also provides the Company with the option to include in the “project area” properties within the “area of interest”. The term of the option is for so long as the Company continues to conduct exploration activities in the Project Area and can be exercised on 60 days’ notice to Santa Fe.

 

15

 

 

Additionally, on November 8, 2021, the Company entered into a financing and purchase option agreement with Greentech Minerals Holdings, Inc. (“Greentech”). Under the agreement, Greentech is responsible for funding initial exploration activities and the bankable feasibility study, estimated to cost approximately $6.5 million, for the Santa Fe project exploration. It is contemplated that the bankable feasibility study will be designed to proceed in five tranches, each based on the success of the previous. It is estimated that completion of all tranches, if successful, would take twelve to fifteen months, depending on variables such as data analysis, weather and permitting.

 

Upon successful completion of the study, Greentech will be entitled to received 20% of the Company’s initial equity in the proposed joint venture with Santa Fe, equal to approximately 10.1% of the total equity of the joint venture. In addition, assuming Greentech exercises its option to participate in funding the Santa Fe project capital expenditures, currently anticipated to be approximately $15 million, it will be entitled to receive another 20% of the Company’s initial equity in the future joint venture, equal to approximately an additional 10.1%. In total, Greentech, in exchange for its funding, has the ability to earn at least 20.2% membership interest in the potential joint venture with Santa Fe assuming successful completion of the overall first project.

 

Liquidity and Capital Resources

 

As of November 30, 2021, our accumulated deficit was approximately $37,187,000 and our cash position was approximately $4,863,000. We had a working capital surplus of approximately $4,812,000. We have not commenced commercial production on any of our mineral properties. We have no revenues from operations and anticipate we will have no operating revenues until we place one or more of our properties into production. All properties are in the exploration stage.

 

In December 2021, the Company funded its December cash call in the amount of $305,000 into the Round Top Project.

 

During the current fiscal year, RTMD is expected to fund the expenditure of approximately $20 million to optimize the leaching and developing of the CIX/CIC processing of the Round Top Project. Initial process design work will be carried out at USARE’s facility in Wheat Ridge, Colorado. Pending completion of the initial process development, this facility will either be relocated to or replicated at the Round Top Project where a pilot plant is expected to be established. This work will consist of mining and crushing approximately 40,000 tonnes of rhyolite and setting up and equipping a facility to conduct pilot plant scale heap leaching. It is estimated that the Round Top Project will require additional time and further expenditure to complete a bankable feasibility study. We plan to fund up to approximately $3.5 million of the expected expenditures by RTMD during our current fiscal year.

 

We have sufficient cash on hand to fund our portion of the RTMD budget during our current fiscal year. Thereafter, we will need to raise additional funding to implement our business strategy and to continue to fund our portion of the RTMD budget (20% is our obligation and this percentage equates to our membership interest in RTMD), the failure of which could cause us to curtail or cease our operations. The most likely source of future financing presently available to us is through the sale of our securities. Any sale of our shares of Common Stock will result in dilution of equity ownership to existing stockholders. This means that if we sell shares of Common Stock, more shares will be outstanding and each existing stockholder will own a smaller percentage of the shares then outstanding. Alternatively, we may rely on debt financing and assume debt obligations that require us to make substantial interest and capital payments. Also, we may issue or grant warrants or options in the future pursuant to which additional shares of Common Stock may be issued. Exercise of such warrants or options will result in dilution of equity ownership to our existing stockholders.

 

Results of Operations

 

Three months ended November 30, 2021 and November 30, 2020

 

Grant Income

 

Grants received from government and other agencies in advance of a specific project’s expenses are deferred and recognized as other income in the statements of operations in the period they are earned and the related project costs are incurred. For the three months ended November 30, 2021 and 2020, we recognized approximately $374,600 and $50,000, respectively, of grant income which is presented in other income net of grant related expenses totaling approximately $304,000 and $0, respectively.

 

Revenue

 

We had no operating revenues during the three months ended November 30, 2021 and November 30, 2020. We are not currently profitable. As a result of ongoing operating losses, we had an accumulated deficit of approximately $37.2 million as of November 30, 2021.

 

Operating expenses and resulting losses from Operations.

 

We incurred exploration costs for the three months ended November 30, 2021 and November 30, 2020, in the amount of approximately $71,000 and $66,000, respectively. Expenditures during the three months 2021 and 2020 were primarily for metallurgical testing and delay rentals. In the three months ended November 30, 2020 expenditures for metallurgical activities were funded by our joint venture partner, USARE.

 

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Our general and administrative expenses for the three months ended November 30, 2021 and November 30, 2020, respectively, were approximately $340,000 and $325,000. For the three months ended November 30, 2021 and 2020, this amount included approximately $171,000 and $190,000, respectively, in stock-based compensation to directors and outside consultants. The remaining expenditures were primarily for payroll and related taxes and benefits, professional fees and other general and administrative expenses necessary for our operations.

 

For the three months ended November 30, 2021 and November 30, 2020, we earned approximately $1,600 and $1,400, respectively, in interest income from depository accounts.

 

We had losses from operations for the three months ended November 30, 2021 and November 30, 2020 totaling approximately $411,000 and $391,000, respectively.

 

We had net losses for the three months ended November 30, 2021 and November 30, 2020 totaling approximately $339,000 and $340,000, respectively.

 

Investment Company Act Exclusion

 

Section 3(a)(9) of the Investment Company Act of 1940, as amended (“1940 Act”), provides that a company “substantially all of whose business consists of owning or holding oil, gas, or other mineral royalties or leases, or fractional interests therein, or certificates of interest or participation in or investment contracts relative to such royalties, leases, or fractional interests” is not an investment company within the meaning of the 1940 Act. The Company has determined that this exemption applies to it giving consideration to the following four factors:

 

 

whether the exempted activity constitutes “substantially all” of our business;

 

 

The Company has owned mineral leases since 2010, all of our business to date has been comprised of owning and developing the mineral leases and, after the May 2021 “farm-down” of its 100% interest in the mineral leases, all of our business continues to be comprised of owning and holding a certificate of interest and a participation in the mineral leases owned by RTMD. The Company’s mineral assets historically, as well as the value of the certificate of interest at November 30, 2021, have been booked at cost in accordance with GAAP. We have an accumulated deficit of approximately $37.2 million at August 31, 2021 as a result of owning and developing the Round Top Project. Our Board of Directors has authorized and instructed us to (i) invest approximately $3.5 million of our current cash during the current fiscal year to meet the RTMD budgeted cash calls pursuant to the initial budget adopted by the Company and USARE in the Operating Agreement, for the Round Top Project, as well as to (ii) fund future budgets to be adopted by the management committee of RTMD for the development of the Round Top Project to the extent of available working capital.

 

 

whether we own or trade in the mineral leases;

 

 

The Company has owned the mineral leases, which are now owned by RTMD, since 2010 and neither the Company nor RTMD is in the business of dealing or trading in the mineral leases.

 

 

what qualifies as an eligible asset for purposes of the exception; and

 

 

The statute specifically references mineral leases and our mineral leases were owned by the Company and are now owned by RTMD. In accordance with Regulation S-K Item 1300 that governs disclosure by registrants engaged in mining operations, the definition of mineral resource is “a concentration or occurrence of material of economic interest in or on the Earth’s crust.” Our rare earth elements and minerals underlying the mineral leases meet that definition, as well as does coal, silver, gold and other material mined for economic value by registrants involved in mining operations. The SEC staff has recognized that an excepted entity can also engage in related business activities such as exploring, developing, and operating the eligible assets.

 

 

what qualifies as a “certificate of interest or participation in” or an “investment contract relative to” the eligible assets.

 

 

The statute allows a Company to own a “certificate of interest” or “participation in” the mineral leases. The SEC staff has advised that limited partnership interests and/or similar securities issued by entities that themselves own the leases constitute “certificate of interest or participation in or investment contracts” related to such leases. The Company’s 20% membership interest in RTMD constitutes a “certificate of interest” and a “participation in” the mineral leases that are owned by RTMD.

 

17

 

 

The Company intends to continue to conduct its business operations in order to continue to be excluded from the definition of an “investment company” under the 1940 Act.

 

Off-Balance Sheet Arrangements

 

For the three months ended November 30, 2021 and 2020, we have off-balance sheet arrangements for annual payments in relation to the mineral leases as disclosed in Note 4 of the interim consolidated financial statements.

 

Critical Accounting Estimates

 

Management’s discussion and analysis of financial condition and results of operations is based on our financial statements, which have been prepared in accordance with GAAP. Preparation of financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and the related disclosures of contingencies. Management bases its estimates on various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates, actual results may differ significantly due to changed conditions or assumptions. On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our financial statements are fairly presented in accordance with GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material. Management believes that the following critical accounting estimates and judgments have a significant impact on our financial statements; Valuation of options granted to directors, officers and consultants using the Black-Scholes model.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable.

 

Item 4. Controls and Procedures

 

Disclosure Controls and Procedures

 

At the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision of and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operations of our disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the Exchange Act). Based on that evaluation, and in light of the material weakness existing in our internal controls over financial reporting as of August 31, 2021 (as described in greater detail in our annual report on From 10-K for the year ended August 31, 2021), the CEO and CFO have concluded that as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures were not effective in providing reasonable assurance that: (i) information required to be disclosed by us in our reports that we file or submit to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and (ii) material information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow for accurate and timely decisions regarding required disclosure.

 

Changes in Internal Control over Financial Reporting

 

There were no changes to our internal control over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially effect, our internal controls over financial reporting.

 

18

 

 

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None.

 

Item 1A. Risk Factors

 

The following updates our risk disclosures set forth in our Form 10-K for the year ended August 31, 2021 as filed with the SEC on November 29, 2021.

 

There is no assurance that we will be able to enter into a joint venture agreement with Santa Fe, or if we do, that such joint venture arrangement will result in any successful exploration or development prospects.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

Except as set forth below, all unregistered sales of equity securities during the period covered by this Quarterly Report were previously disclosed in our current reports on Form 8-K or quarterly reports on Form 10-Q.

 

Date

Description

Number

Purchaser

Proceeds

($)

Consideration

Exemption (C)

October 2021

Common Stock

41,231

Directors

$Nil

Services

Sec. 4(a)(2)

September – November 2021

Common Stock Options

43,500

Consultant

$Nil

Services

Sec. 4(a)(2)

 

With respect to sales designated by “Sec. 4(a)(2),” these shares were issued pursuant to the exemption from registration contained in to Section 4(a)(2) of the Securities Act as privately negotiated, isolated, non-recurring transactions not involving any public offer or solicitation. Each purchaser represented that such purchaser’s intention to acquire the shares for investment only and not with a view toward distribution. None of the securities were sold through an underwriter and accordingly, there were no underwriting discounts or commissions involved.

 

We did not repurchase any of our securities during the quarter covered by this report.

 

Item 3. Defaults upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Pursuant to Section 1503(a) of the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act (The “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities. During the quarter ended November 30, 2021, our U.S. exploration properties were not subject to regulation by the Federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977.

 

Item 5. Other Information

 

None.

 

19

 

 

Item 6. Exhibits

 

The following exhibits are attached hereto or are incorporated by reference:

 

Exhibit

No.

 

Description

2.1

 

Plan of Conversion, dated August 24, 2012, incorporated by reference to Exhibit 2.1 of our Form 8-K filed with the SEC on August 29, 2012.

3.1

 

Delaware Certificate of Conversion, incorporated by reference to Exhibit 3.1 of our Form 8-K filed with the SEC on August 29, 2012.

3.2

 

Delaware Certificate of Incorporation, incorporated by reference to Exhibit 3.2 of our Form 8-K filed with the SEC on August 29, 2012.

3.3

 

Delaware Certificate of Amendment, incorporated by reference to Exhibit 3.1 of our Form 8-K filed with the SEC on March 18, 2016

3.4

 

Delaware Bylaws, incorporated by reference to Exhibit 3.3 of our Form 8-K filed with the SEC on August 29, 2012.

4.1

 

Form of Common Stock Certificate, incorporated by reference to Exhibit 4.1 of our Form 10-K for the period ended August 31, 2009 filed with the SEC on February 8, 2011.

10.1

 

Amended and Restated 2008 Stock Option Plan, incorporated by reference to Exhibit 10.1 of our Form 10-Q for the period ended May 31, 2011 filed with the SEC on July 15, 2011.

10.2

 

Mining Lease, incorporated by reference to Exhibit 10.2 of our Form 10-K for the period ended August 31, 2009 filed with the SEC on February 8, 2011.

10.3

 

Mining Lease dated November 2011 with the State of Texas, incorporated by reference to Exhibit 10.3 of of the Company’s Annual Report on Form 10-K for the period ended August 31, 2019 filed with the SEC on November 27, 2019.

10.4

 

Purchase option agreement dated September 2014 with the State of Texas, incorporated by reference to Exhibit 10.4 of of the Company’s Annual Report on Form 10-K for the period ended August 31, 2019 filed with the SEC on November 27, 2019.

10.5

 

Groundwater lease dated September 2014 with the State of Texas, incorporated by reference to Exhibit 10.5 of of the Company’s Annual Report on Form 10-K for the period ended August 31, 2019 filed with the SEC on November 27, 2019.

10.6

 

ReeTech Operating Agreement, incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K as filed with the Commission on July 21, 2015.

10.7

 

Amendment Number One to the Reetech Operating Agreement, incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K as filed with the Commission on November 30, 2015.

10.8

 

Amendment Number One to the TRER License, incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K as filed with the Commission on November 30, 2015.

10.9*

 

Director’s Agreement by and between the Company and Anthony Marchese, incorporated by reference to Exhibit 10.6 of our Form 10-K for the period ended August 31, 2009 filed with the SEC on February 8, 2011.

10.10*

 

Summary of Dan Gorski Employment Arrangement, incorporated by reference to Exhibit 10.10 of of the Company’s Annual Report on Form 10-K for the period ended August 31, 2019 filed with the SEC on November 27, 2019.

10.11*

 

Summary of Wm. Chris Mathers Employment Arrangement, incorporated by reference to Exhibit 10.11 of of the Company’s Annual Report on Form 10-K for the period ended August 31, 2019 filed with the SEC on November 27, 2019.

10.12*

 

Option Agreement for Wm. Chris Mathers incorporated by reference to Exhibit 10.21 of our Amendment No. 2 to its Registration Statement on Form S-1 (333-172116) filed with the SEC on May 25, 2011.

10.13*

 

Form of Directors Option Agreement incorporated by reference to Exhibit 10.22 of our Amendment No. 2 to its Registration Statement on Form S-1 (333-172116) filed with the SEC on May 25, 2011.

10.14

 

Consulting Agreement between the Company and Chemetals, Inc., dated January 22, 2013, incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on January 28, 2013.

10.15

 

Lease Agreement between the Company and Southwest Range & Wildlife Foundation, Inc., dated March 6, 2013, incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on March 12, 2013.

10.16

 

Variation agreement with Morzev PTY LTD. (USA Rare Earth) dated October 2018, incorporated by reference to Exhibit 10.16 of the Company’s Annual Report on Form 10-K for the period ended August 31, 2019 filed with the SEC on November 27, 2019.

 

 

20

 

 

10.17

 

Amended and Restated Option Agreement with Morzev (USA Rare Earth) dated August 2019, incorporated by reference to Exhibit 10.17 of the Company’s Annual Report on Form 10-K for the period ended August 31, 2019 filed with the SEC on November 27, 2019.

10.18

 

First Amendment to the Amended and Restated Option Agreement with USA Rare Earth dated June 29, 2020, incorporated by reference to Appendix A of the definitive proxy statement on Schedule 14A filed with the SEC on July 15, 2020.

10.19

 

Mining lease dated September 2011, incorporated by reference to Exhibit 10.19 of the Form 10-K for the period ended August 31, 2020 filed with the SEC on November 30, 2020.

10.20

 

Contribution Agreement, effective as of May 17, 2021, among USA Rare Earth, LLC, Texas Mineral Resources Corp., and Round Top Mountain Development, LLC, filed with the SEC on Form 8-K on May 21, 2021.

10.21

 

Limited Liability Company Agreement dated effective as of May 17, 2021, among USA Rare Earth, LLC, Texas Mineral Resources Corp., and Round Top Mountain Development, LLC, filed with the SEC on Form 8-K on May 21, 2021.

10.22

 

Mineral Exploration and Option Agreement dated effective October 7, 2021 between Standard Silver Corp. and Santa Fe Gold Corporation, filed with the SEC on Form 8-K on November 10, 2021.

10.23

 

Financing and Purchase Option Agreement dated effective November 2, 2021 between Standard Silver Corp. and Greentech Minerals Holdings, Inc., filed with the SEC on Form 8-K on November 10, 2021.

31.1

 

Certification by Chief Executive Officer

31.2

 

Certification by Chief Financial Officer

32.1

 

Section 1350 Certification by Chief Executive Officer

32.2

 

Section 1350 Certification by Chief Financial Officer

 

101.INS(1)

 

XBRL Instance Document

101.SCH(1)

 

XBRL Taxonomy Extension – Schema

101.CAL(1)

 

XBRL Taxonomy Extension – Calculations

101.DEF(1)

 

XBRL Taxonomy Extension – Definitions

101.LAB(1)

 

XBRL Taxonomy Extension – Labels

101.PRE(1)

 

XBRL Taxonomy Extension – Presentations

 

* Management contract or compensatory plan or arrangement.

 

(1)Submitted Electronically Herewith. Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets at November 30, 2021 and August 31, 2021; (ii) Consolidated Statements of Operations for the three months ended November 30, 2021 and 2020; (iii) Consolidated Statements of Cash Flows for the three months ended November 30, 2021 and 2020; (iv) Consolidated Statements of Shareholders’ Equity for the three months ended November 30, 2021 and 2020; and (v) Notes to Consolidated Financial Statements.

 

21

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

TEXAS MINERAL RESOURCES CORP.

 

Date: January 14, 2022

 

 

 

/s/ Daniel E. Gorski

 

Daniel E. Gorski, duly authorized officer

 

Chief Executive Officer and Principal

 

Executive Officer

 

 

 

Date: January 14, 2022

 

 

 

/s/ Wm Chris Mathers

 

Wm Chris Mathers, Chief Financial Officer and

 

Principal Financial and Accounting Officer

 

 

22

EX-31.1 2 ex31-1.htm CERTIFICATION BY CHIEF EXECUTIVE OFFICER
 

Texas Mineral Resources Corp. 10-Q 

 

Exhibit 31.1. Certification by Chief Executive Officer

 

CERTIFICATION PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002

 

I, Daniel E. Gorski, certify that:

 

 

1.

I have reviewed this quarterly report on Form 10-Q of Texas Mineral Resources Corp.;

 

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

 

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: January 14, 2022

 

 

 

/s/ Daniel E. Gorski

 

Daniel E. Gorski, Chief Executive Officer,

 

Principal Executive Officer

 

 

 

 

EX-31.2 3 ex31-2.htm CERTIFICATION BY CHIEF FINANCIAL OFFICER
 

Texas Mineral Resources Corp. 10-Q 

 

Exhibit 31.2. Certification by Chief Financial Officer

 

CERTIFICATION PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002

 

I, Wm Chris Mathers, certify that:

 

 

1.

I have reviewed this quarterly report on Form 10-Q of Texas Mineral Resources Corp.;

 

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

 

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: January 14, 2022

 

 

 

/s/ Wm Chris Mathers

 

Wm Chris Mathers, Chief Financial Officer,

 

Principal Financial and Accounting Officer

 

 

 

EX-32.1 4 ex32-1.htm SECTION 1350 CERTIFICATION BY CHIEF EXECUTIVE OFFICER
 

Texas Mineral Resources Corp. 10-Q 

 

Exhibit 32.1. Section 1350 Certification by Chief Executive Officer

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Texas Mineral Resources Corp. (the “Company”) on Form 10-Q for the quarter ending November 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Daniel E. Gorski, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Daniel E. Gorski

 

Daniel E. Gorski, Chief Executive Officer

 

 

 

January 14, 2022

 

 

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

 

 

EX-32.1 5 ex32-2.htm SECTION 1350 CERTIFICATION BY CHIEF FINANCIAL OFFICER
 

Texas Mineral Resources Corp. 10-Q 

 

Exhibit 32.2. Section 1350 Certification by Chief Financial Officer

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Texas Mineral Resources Corp. (the “Company”) on Form 10-Q for the quarter ending November 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Wm Chris Mathers, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Wm Chris Mathers

 

Wm Chris Mathers, Chief Financial Officer

 

 

 

January 14, 2022

 

 

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

 

 

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acres Lease Bonus Payment of lease bonus Lease bonus due Minimum advance royalty due Production royalty of market value of uranium and fissionable materials Production royalty of market value of other minerals Lease extension period Payment of delay rental Cash Shares issued for lease Value of shares issued for lease Periodic payment for conservation efforts Payment period for conservation efforts Surface rights - acres Periodic option annual payment due Ground water lease - acres Distance from project mine Number of existing water wells Annual minimum production payment Production payment, amount per gallon Production payment, annual amount Area of project Area of property covered under agreement Percentage of known mining district covered Area of interest radius Exercise period of option Exploration activities and feasibility study funding Feasibility study number of tranches Feasibility study period Percentage of initial equity entitled to receive Percentage of total equity of joint venture Option to participate in funding Entitled to receive additional percentage of initial equity Option percentage of total equity Option to receive percentage in exchange for funding Schedule of Stock by Class [Table] Class of Stock [Line Items] Number of shares issued Compensation expense Number of options granted Fair value of options granted Fair value assumptions - Risk free interest rate Fair value assumptions - Volatilty Fair value assumptions - Dividend yield Fair value assumptions - Expected term Consulting agreements, number of shares Consulting agreements, number of shares per agreement Consulting agreements, value of shares Share price Share vesting period Number of shares vested Number of shares issued Unrecognized stock compensation Grant income Grant related expenses Subsequent Event [Table] Subsequent Event [Line Items] Contribution to joint venture Tabular disclosure of the November 2011 lease. November 2011 Lease. Amount of lease bonus. August 2010 Lease. March 2013 Lease. October 2014 Surface Option and Water Lease. Santa Fe Gold Corporation. The number of shares under consulting agreements. The number of shares per consulting agreement. The value of shares under consulting agreements. September 2, 2025 – 2029. Lease amount, per acre for mineral properties. Total lease amount for mineral properties. November 1, 2020 – 2024. November 1, 2025 – 2029. Percentage of initial ownership interest under agreement. USARE. Amount of contribution for initial ownership interest under agreement. Percentage of increasable ownership interest under agreement. Amount of additional contribution for increasable ownership interest under agreement. Round Top Mountain Development Company, LLC. Percentage of initial ownership acquired. Percentage of additional ownership interest acquired. Amount of consideration received from joint venture. Amount of proceeds from exercise of joint venture option. Amount of proceeds from previous advances. Derecognized percentage of mineral properties. Derecognized amount of mineral properties. Cash asssigned to joint venture. The value of a specified interest in joint venture. The specified interest percentage of joint venture. Cash asssigned for exercise of joint venture option. Are of mining lease in acres. Texas General Land Office. Amount of payment of lease bonus. Amount of lease bonus due upon filing of supplemental plan of operations to conduct mining. Amount of minimum advance royalty due upon sale of minerals. Percentage of production royalty of market value of uranium and other fissionable materials removed. Percentage of production royalty of market value of other minerals removed. Lease extension period. Amount of payment of delay rental. Amount of cash paid for lease assignment. Rio Grande Foundation. Amount of periodic payment for conservation efforts. Payment period for conservation efforts. Area of surface rights in acres. Periodic option annual payment due. Area of ground water lease in acres. Distance from project mine. Number of existing water wells. Annual minimum production payment. Production payment, annual amount. Production payment, amount per gallon. Santa Fe Joint Venture. Area of project. Area of property covered under agreement. Percentage of known mining district covered. Area of interest radius. Exercise period of option. Exploration activities and feasibility study funding. Feasibility study number of tranches. Greentech. Feasibility study period. Percentage of initial equity entitled to receive. Percentage of total equity of joint venture. Option to participate in funding. Entitled to receive additional percentage of initial equity. Option percentage of total equity. Option to receive percentage in exchange for funding. September 2, 2020 – 2024. Consultant. Amount of contribution to joint venture. Tabular disclosure of the August 2010 lease. Assets, Current Assets Liabilities, Current Liabilities Stockholders' Equity Attributable to Parent Liabilities and Equity Operating Expenses Operating Income (Loss) Nonoperating Income (Expense) Net Income (Loss) Attributable to Parent Increase (Decrease) in Prepaid Expense and Other Assets Increase (Decrease) in Accounts Payable and Accrued Liabilities Net Cash Provided by (Used in) Operating Activities Net Cash Provided by (Used in) Financing Activities Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect Shares, Outstanding APIC, Share-based Payment Arrangement, Increase for Cost Recognition Stockholders' Equity Note Disclosure [Text Block] Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period EX-101.PRE 10 tmrc-20211130_pre.xml XBRL PRESENTATION FILE XML 11 R1.htm IDEA: XBRL DOCUMENT v3.21.4
Cover - shares
3 Months Ended
Nov. 30, 2021
Jan. 10, 2022
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Nov. 30, 2021  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2022  
Current Fiscal Year End Date --08-31  
Entity File Number 000-53482  
Entity Registrant Name TEXAS MINERAL RESOURCES CORP.  
Entity Central Index Key 0001445942  
Entity Tax Identification Number 87-0294969  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 539 El Paso Street  
Entity Address, City or Town Sierra Blanca  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 79851  
City Area Code 915  
Local Phone Number 369-2133  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   72,006,514
XML 12 R2.htm IDEA: XBRL DOCUMENT v3.21.4
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
Nov. 30, 2021
Aug. 31, 2021
CURRENT ASSETS    
Cash and cash equivalents $ 4,863,190 $ 5,106,653
Prepaid expenses and other current assets 28,774 73,029
Total current assets 4,891,964 5,179,682
Property and equipment, net 29,088 30,834
Mineral properties, net 181,755 181,755
Deposits 12,620 12,620
TOTAL ASSETS 5,115,427 5,404,891
CURRENT LIABILITIES    
Accounts payable and accrued liabilities 69,502 191,394
Accounts payable - related party 10,000 10,000
Total current liabilities 79,502 201,394
Total liabilities 79,502 201,394
SHAREHOLDERS’ EQUITY    
Preferred stock, par value $0.001; 10,000,000 shares authorized, no shares issued and oustanding as of November 30, 2021 and August 31, 2021
Common stock, par value $0.01; 100,000,000 shares authorized, 71,975,296 and 71,934,065 shares issued and oustanding as of November 30, 2021 and August 31, 2021, respectively 719,753 719,341
Additional paid-in capital 41,503,356 41,332,478
Accumulated deficit (37,187,184) (36,848,322)
Total shareholders’ equity 5,035,925 5,203,497
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 5,115,427 $ 5,404,891
XML 13 R3.htm IDEA: XBRL DOCUMENT v3.21.4
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares
Nov. 30, 2021
Aug. 31, 2021
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, authorized 10,000,000 10,000,000
Preferred stock, issued 0 0
Preferred stock, outstanding 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized 100,000,000 100,000,000
Common Stock, Issued 71,975,296 71,934,065
Common Stock, outstanding 71,975,296 71,934,065
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.21.4
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended
Nov. 30, 2021
Nov. 30, 2020
OPERATING EXPENSES    
Exploration costs $ 71,158 $ 65,778
General and administrative expenses 339,505 325,277
Total operating expenses 410,663 391,055
LOSS FROM OPERATIONS (410,663) (391,055)
OTHER INCOME (EXPENSE)    
Interest income 1,625 1,372
Grant income, net of expenses 70,176 50,000
Total other income (expense) 71,801 51,372
NET LOSS $ (338,862) $ (339,683)
Net loss per share:    
Basic and diluted net loss per share $ (0.00) $ (0.00)
Weighted average shares outstanding:    
Basic and diluted 71,956,719 71,346,419
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.21.4
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
3 Months Ended
Nov. 30, 2021
Nov. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (338,862) $ (339,683)
Adjustments to reconcile net loss to net cash    
Depreciation 1,746
Stock based compensation 171,290 190,367
Changes in current assets and liabilities:    
Prepaid expenses and other current assets 44,255 37,540
Accounts payable and accrued liabilities (121,892) (49,058)
Net cash provided by (used in) operating activities (243,463) (160,834)
CASH FLOWS FROM FINANCING ACTIVITIES    
Advances from related parties 5,500
Proceeds from exercise of common stock warrants 24,500
Net cash provided by financing activities 30,000
NET CHANGE IN CASH AND CASH EQUIVALENTS (243,463) (130,834)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 5,106,653 2,746,451
CASH AND CASH EQUIVALENTS, END OF PERIOD 4,863,190 2,615,617
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest paid
Taxes paid
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued as payment of accrued expenses $ 92,500
XML 16 R6.htm IDEA: XBRL DOCUMENT v3.21.4
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($)
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Beginning balance, value at Aug. 31, 2020 $ 713,233 $ 40,376,847 $ (38,892,524) $ 2,197,556
Beginning balance (in shares) at Aug. 31, 2020 71,323,278      
Stock based compensation 190,367 190,367
Common stock issued as payment of accrued director’s fees $ 619 91,881 92,500
Common stock issued as payment of accrued director's fees (in shares)   61,936      
Warrant conversion 24,500 24,500
Net loss (339,683) (339,683)
Ending balance, value at Nov. 30, 2020 $ 713,852 40,493,228 (39,232,207) 1,974,873
Ending balance (in shares) at Nov. 30, 2020 71,385,214      
Beginning balance, value at Aug. 31, 2021 $ 719,341 41,332,478 (36,848,322) 5,203,497
Beginning balance (in shares) at Aug. 31, 2021 71,934,065      
Options issued for services 73,788 73,788
Common stock issued for services $ 412 97,090   97,502
Common stock issued for services (in shares)   41,231      
Net loss (338,862) (338,862)
Ending balance, value at Nov. 30, 2021 $ 719,753 $ 41,503,356 $ (37,187,184) $ 5,035,925
Ending balance (in shares) at Nov. 30, 2021 71,975,296      
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.21.4
GENERAL
3 Months Ended
Nov. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GENERAL

NOTE 1 – GENERAL

 

Basis of Presentation

 

The accompanying unaudited interim consolidated financial statements of Texas Mineral Resources Corp. (“we”, “us”, “our”, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in our annual report on Form 10-K, for the year ended August 31, 2021, dated November 29, 2021 as filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2021 as reported in our annual report on Form 10-K, have been omitted.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of Texas Mineral Resources Corp and its proportionate interest in the assets, liabilities, and operations of Round Top Mountain Development Company, LLC (“RTMD”). All significant intercompany balances and transactions have been eliminated.

XML 18 R8.htm IDEA: XBRL DOCUMENT v3.21.4
RECENT ACCOUNTING PRONOUNCEMENTS
3 Months Ended
Nov. 30, 2021
Accounting Changes and Error Corrections [Abstract]  
RECENT ACCOUNTING PRONOUNCEMENTS

NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS

 

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt – Debit with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share (“EPS”) calculation in certain areas. This ASU is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. Management does not expect the adoption of this standard to have a significant impact on the Company’s financial position, results of operations or cash flows.

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.21.4
JOINT VENTURE ARRANGEMENTS
3 Months Ended
Nov. 30, 2021
Equity Method Investments and Joint Ventures [Abstract]  
JOINT VENTURE ARRANGEMENTS

NOTE 3 – JOINT VENTURE ARRANGEMENTS

 

In August 2018, the Company and Morzev Pty. Ltd. (“Morzev”) entered into an agreement (the “2018 Option Agreement”) whereby Morzev was granted the exclusive right to earn and acquire a 70% interest in the Company’s Round Top Project (“Project” or “Round Top” or “Round Top Project”) by financing $10 million of expenditures in connection with the Project, increasable to an 80% interest for an additional $3 million payment to the Company. Morzev began operating as USA Rare Earth, LLC (“USARE”) and in May 2019 notified the Company that it was nominating USARE as the optionee under the terms of the 2018 Option Agreement. In August 2019, the Company and USARE entered into an amended and restated option agreement as further amended on June 29, 2020 (the “2019 Option Agreement” and collectively with the 2018 Option Agreement, the “Option Agreement”), whereby the Company restated its agreement to grant USARE the exclusive right to earn and acquire a 70% interest, increasable to an 80% interest, in the Round Top Project. The 2019 Option Agreement has substantially similar terms to the 2018 Option Agreement.

 

On May 17, 2021, and in accordance with the terms of the Option Agreement, the Company and USARE entered into a contribution agreement (“Contribution Agreement”) whereby the Company and USARE contributed assets to RTMD, a wholly-owned subsidiary of the Company, in exchange for their ownership interests in RTMD, of which the Company now owns membership interests equating to 20% of RTMD and USARE owns membership interests equating to 80% of RTMD. Concurrently therewith, the Company and USARE as the two members entered into a limited liability company agreement (“Operating Agreement”) governing the operations of RTMD which contains customary and industry standard terms as contemplated by the Option Agreement. USARE will serve as manager of RTMD and Mr. Gorski, on behalf of the Company, will serve as one of the three members of the management committee.

 

 

 

In connection with USARE meeting its obligations to acquire a 70% interest in the Round Top Project and exercising its right to an additional 10% interest, the Company received total consideration of approximately $3,728,000, consisting of the $3 million upon exercise of the option and approximately $728,000 in previous advances to the Company by USARE, and derecognized 80% of the carrying amount of mineral properties, or approximately $402,000. The resulting gain on sale of interest in mineral properties in the amount of approximately $3,326,000 was recognized during the quarter ended May 31, 2021.

 

Upon entry into the Contribution Agreement, the Company assigned the following contracts and assets to RTMD in exchange for its 20% membership interest in RTMD:

 

 

the assignment and assumption agreement with respect to the mineral leases from the Company to RTMD;

 

 

the assignment and assumption agreement with respect to the surface lease from the Company to RTMD;

 

 

the assignment and assumption agreement with respect to the surface purchase option from the Company to RTMD;

 

 

the assignment and assumption agreement with respect to the water lease from the Company to RTMD; and

 

 

the bill of sale and assignment agreement of existing data with respect to RTMD owned by the Company.

 

and USARE assigned the following assets to RTMD (or the Company, as applicable) for its 80% membership interest in RTMD:

 

 

cash to RTMD to continue to fund RTMD operations in the amount of approximately $3,761,750 comprising the balance of the $10 million required expenditure to earn a 70% interest in RTMD;

 

 

cash in the amount of $3 million to the Company upon exercise of the USARE option to acquire from the Company an additional 10% interest in RTMD, resulting in the aggregate ownership interest of 80% in RTMD;

 

 

bill of sale and assignment agreement of the Pilot Plant to RTMD;

 

 

the assignment and assumption regarding relevant contracts and permits with respect to RTMD; and

 

 

bill of sale and assignment agreement of existing data and intellectual property owned by USARE to RTMD.

 

The Company accounts for its interest in RTMD using the proportionate consolidation method, which is an exception available to entities in the extractive industries, thereby recognizing its pro-rata share of the assets, liabilities, and operations of RTMD in the appropriate classifications in the financial statements. Subsequent to the sale of an undivided 80% interest in RTMD, there was no significant activity in RTMD requiring recognition in the financial statements.

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.21.4
MINERAL PROPERTIES
3 Months Ended
Nov. 30, 2021
Extractive Industries [Abstract]  
MINERAL PROPERTIES

NOTE 4 – MINERAL PROPERTIES

 

As set forth in Note 3- Joint Venture Arrangements, the ownership of and obligations associated with the leases and options maintained with the Texas Land Office and other third parties were transferred to RTMD in May 2021. 

 

August 2010 Lease

 

On August 17, 2010, the Company executed a new mining lease with the Texas General Land Office covering Sections 7 and 18 of Township 7, Block 71 and Section 12 of Block 72, covering approximately 860 acres at Round Top Mountain in Hudspeth County, Texas. The mining lease issued by the Texas General Land Office gives the Company the right to explore, produce, develop, mine, extract, mill, remove, and market rare earth elements, all other base and precious metals, industrial minerals and construction materials and all other minerals excluding oil, gas, coal, lignite, sulfur, salt, and potash. The term of the lease is nineteen years so long as minerals are produced in paying quantities.

 

 

Under the terms of the lease, the Company will pay the State of Texas a total lease bonus of $142,518. The Company paid $44,718 upon the execution of the lease, and will pay the remaining $97,800 upon submission of a supplemental plan of operations to conduct mining. Upon sale of any minerals removed from Round Top, the Company will pay the State of Texas a $500,000 minimum advance royalty.

 

Thereafter, if paying quantities of minerals are obtained, the Company will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals removed and sold. If paying quantities have not been obtained, the Company may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule: 

 

 

Per Acre
Amount

 

 

Total
Amount

 

September 2, 2020 – 2024

 

$

150

 

 

$

134,155

 

September 2, 2025 – 2029

 

 

200

 

 

 

178,873

 

 

In August 2021, our joint venture partner paid the State of Texas a delay rental to extend the term of the lease in an amount equal to $134,155.

 

November 2011 Lease

 

On November 1, 2011, the Company executed a mining lease with the State of Texas covering approximately 90 acres of land that is adjacent to the August 2010 Lease. Under the lease, the Company paid the State of Texas a lease bonus of $20,700 upon the execution of the lease. Upon the sale of minerals removed from Round Top, the Company will pay the State of Texas a $50,000 minimum advance royalty.

 

Thereafter, if paying quantities of minerals are obtained, the Company will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals. If paying quantities have not been obtained, the Company may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule:

 

 

Per Acre
Amount

 

 

Total
Amount

 

November 1, 2020 – 2024

 

$

150

 

 

$

13,500

 

November 1, 2025 – 2029

 

 

200

 

 

 

18,000

 

 

In August 2021, our joint venture partner paid the State of Texas a delay rental to extend the term of the lease in an amount equal to $13,500.

 

March 2013 Lease

 

On March 6, 2013, the Company purchased the surface lease at the Round Top Project, known as the West Lease, from the Southwest Wildlife and Range Foundation (since renamed the Rio Grande Foundation) for $500,000 cash and 1,063,830 shares of common stock valued at $500,000. The Company also agreed to support the Foundation through an annual payment of $45,000 for ten years to support conservation efforts within the Rio Grande Basin, particularly Lake Amistad, a large and well-known fishing lake near Del Rio, Texas. The West Lease comprises approximately 54,990 acres. Most importantly, the purchase of the surface lease provides the Company unrestricted surface access for the potential development and mining of the Round Top Project.

 

October 2014 Surface Option and Water Lease

 

On October 29, 2014, the Company announced the execution of agreements with the Texas General Land Office securing the option to purchase the surface rights covering the potential Round Top Project mine and plant areas and, separately, a lease to develop the water necessary for the potential Round Top Project mine operations. The option to purchase the surface rights covers approximately 5,670 acres over the mining lease and the additional acreage adequate to site all potential heap leaching and processing operations as currently anticipated by the Company. The Company may exercise the option for all or part of the option acreage at any time during the sixteen-year primary term of the mineral lease. The option can be maintained through annual payments of $10,000. The purchase price will be the appraised value of the surface at the time of option exercise. All annual payments have been made as of the date of this filing.

 

 

The ground water lease secures the right to develop the ground water within a 13,120-acre lease area located approximately 4 miles from the Round Top deposit. The lease area contains five existing water wells. It is anticipated that all potential water needs for the Round Top Project mine operations would be satisfied by the existing wells covered by this water lease. This lease terms include an annual minimum production payment of $5,000 prior to production of water for the operation. After initiation of production, the Company will pay $0.95 per thousand gallons or $20,000 annually, whichever is greater. This lease remains in effect so long as the mineral lease is in effect. The minimum production payment for all fiscal years have been made as of the date of this filing.

 

Santa Fe Gold Corporation

 

On November 8, 2021, the Company entered into a mineral exploration and option agreement with Santa Fe Gold Corporation (“Santa Fe”). Under the agreement, the Company and Santa Fe plan to pursue, negotiate and subsequently enter into a joint venture agreement to jointly explore and develop a target silver property to be selected by the Company among patented and unpatented mining claims held by Santa Fe within the Black Hawk Mining District in Grant County, New Mexico. Completion of a joint venture agreement is subject to the successful outcome of a multi-phase exploration plan leading to a bankable feasibility study to be undertaken in the near future by the Company. Under the expected terms of the joint venture agreement, the Company would be project operator and initially own 50.5% of the joint venture while Santa Fe would initially own 49.5%. Additional terms of the joint venture are to be negotiated between the Company and Santa Fe. 

 

Under the terms of the agreement, the Company plans to conduct a district-wide evaluation among the patented and unpatented claims held by Santa Fe, consisting of geologic mapping, sampling, trenching, radiometric surveying, geophysics, drilling and/or other methods as warranted. Based on the district-wide evaluation, the Company will designate one 80-acre tract as the “project area” and commence detailed exploration work. The property covered in the agreement is approximately 1,300 acres and covers approximately 75% of the known mining district. The area to be studied also includes a two-mile radius “area of interest.” The agreement provides the Company with the option to designate any properties within the “area of interest” as “project area” properties. The term of the option is for so long as the Company continues to conduct exploration activities in the Project Area and can be exercised on 60 days’ notice to Santa Fe.

 

Additionally, on November 8, 2021, the Company entered into a financing and purchase option agreement with Greentech Minerals Holdings, Inc. (“Greentech”). Under the agreement, Greentech is responsible for funding initial exploration activities and the bankable feasibility study, estimated to cost approximately $6.5 million, for the Santa Fe project exploration. It is contemplated that the bankable feasibility study will be designed to proceed in five tranches, each based on the success of the previous. It is estimated that completion of all tranches, if successful, would take twelve to fifteen months, depending on variables such as data analysis, weather and permitting.

 

Upon successful completion of the study, Greentech will be entitled to received 20% of the Company’s initial equity in the proposed joint venture with Santa Fe, equal to approximately 10.1% of the total equity of the joint venture. In addition, assuming Greentech exercises its option to participate in funding the Santa Fe project capital expenditures, currently anticipated to be approximately $15 million, it will be entitled to receive another 20% of the Company’s initial equity in the future joint venture, equal to approximately an additional 10.1%. In total, Greentech, in exchange for its funding, has the ability to earn at least 20.2% membership interest in the potential joint venture with Santa Fe assuming successful completion of the overall first project.

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.21.4
SHAREHOLDERS’ EQUITY
3 Months Ended
Nov. 30, 2021
Equity [Abstract]  
SHAREHOLDERS’ EQUITY

NOTE 5 – SHAREHOLDERS’ EQUITY

 

The Company’s authorized capital stock consists of 100,000,000 shares of common stock, with a par value of $0.01 per share, and 10,000,000 preferred shares with a par value of $0.001 per share.

 

All shares of common stock have equal voting rights and, when validly issued and outstanding, are entitled to one non-cumulative vote per share in all matters to be voted upon by shareholders. Shares of common stock have no pre-emptive, subscription, conversion or redemption rights and may be issued only as fully paid and non-assessable shares. Holders of common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by the Company’s Board of Directors (the “Board”) out of funds legally available. In the event of a liquidation, dissolution or winding up of the affairs of the Company, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment or provision for all liabilities and any preferential liquidation rights of any preferred stock then outstanding.

 

 

In October 2021, we issued 41,231 shares of common stock related to Director fees earned and expensed during the year ended August 31, 2021.

 

During the quarter ended November 30, 2021, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $41,502 for director’s fees earned during the quarter. The Company issued the related 31,218 shares of common stock in December 2021.

 

During the quarter ended November 30, 2021, the Company granted a total of 43,500 stock options with a fair value of $73,788 on the date of grant to a consultant. The fair value of the options was determined using the Black-Scholes option-pricing model. The weighted average assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.25% (ii) estimated volatility of 201.75% (iii) dividend yield of 0.00% and (iv) expected life of all options of 5 years. The Company recognized the full $73,788 as compensation expense during the three months ended November 30, 2021.

 

In January 2020, the Company entered into three separate consulting agreements for total consideration of 699,999 shares of common stock (233,333 per agreement). The common stock underlying the agreements had a total value of $448,000, based on the $0.64 quoted market price of the common stock on the agreement date. The right to receive the common stock is subject to ratable vesting over a 24-month period and at November 30, 2021, 641,665 shares had vested and 87,501 had been issued. The Company recognized approximately $56,000 of compensation expense under these consulting agreements during both the three months ended November 30, 2021 and 2020, which is included in general and administrative expenses in the accompanying consolidated statements of operations. The consultants have requested that the Company hold the remaining shares issuable under the agreements in trust to allow the consultants to request their shares as they vest. As of November 30, 2021, unrecognized stock based compensation related to the agreements totaled $37,333 which will be expensed in the next quarter.

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.21.4
GRANT INCOME
3 Months Ended
Nov. 30, 2021
Other Income and Expenses [Abstract]  
GRANT INCOME

NOTE 6 – GRANT INCOME

 

Grants received from government and other agencies in advance of a specific project are deferred and recognized as other income in the statements of operations in the period they are earned and the related project costs are incurred. For the three months ended November 30, 2021 and 2020, the Company recognized $374,633 and $50,000, respectively, of grant income which is presented in other income, net of grant related expenses totaling $304,457 and $0, respectively.

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.21.4
SUBSEQUENT EVENTS
3 Months Ended
Nov. 30, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 7 – SUBSEQUENT EVENTS

 

As a part of our obligation for our 20% ownership in the joint venture as disclosed in Note 3, on December 2, 2021 we contributed approximately $305,000 to the joint venture in accordance with the Contribution Agreement between the Company and USARE.

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MINERAL PROPERTIES (Tables)
3 Months Ended
Nov. 30, 2021
Extractive Industries [Abstract]  
Schedule of August 2010 Lease

 

 

Per Acre
Amount

 

 

Total
Amount

 

September 2, 2020 – 2024

 

$

150

 

 

$

134,155

 

September 2, 2025 – 2029

 

 

200

 

 

 

178,873

 

Schedule of November 2011 Lease

 

 

Per Acre
Amount

 

 

Total
Amount

 

November 1, 2020 – 2024

 

$

150

 

 

$

13,500

 

November 1, 2025 – 2029

 

 

200

 

 

 

18,000

 

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JOINT VENTURE ARRANGEMENTS (Details Narrative) - Round Top Mountain Development Company, LLC [Member] - USD ($)
1 Months Ended 3 Months Ended
May 17, 2021
Aug. 31, 2019
Aug. 31, 2018
Nov. 30, 2021
Ownership interest 20.00%      
Consideration received from joint venture $ 3,728,000      
Proceeds from exercise of joint venture option 3,000,000      
Proceeds from previous advances $ 728,000      
Derecognized percentage of mineral properties 80.00%      
Derecognized amount of mineral properties $ 402,000      
Gain on sale of interest in projects       $ 3,326,000
Cash asssigned for exercise of joint venture option $ 3,000,000      
USARE [Member]        
Initial ownership interest under agreement   70.00% 70.00%  
Contribution for initial ownership interest under agreement     $ 10,000,000  
Increasable ownership interest under agreement   80.00% 80.00%  
Additional contribution for increasable ownership interest under agreement     $ 3,000,000  
Controlling ownership interest 80.00%      
Initial ownership interest acquired 70.00%      
Additional ownership interest acquired 10.00%      
Cash asssigned to joint venture $ 3,761,750      
Value of specified interest in joint venture $ 10,000,000      
Specified interest percentage of joint venture 70.00%      
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Schedule of August 2010 Lease (Details)
Nov. 30, 2021
USD ($)
$ / a
September 2, 2020 – 2024 [Member]  
Property, Plant and Equipment [Line Items]  
Per Acre Amount | $ / a 150
Total Amount | $ $ 134,155
September 2, 2025 – 2029 [Member]  
Property, Plant and Equipment [Line Items]  
Per Acre Amount | $ / a 200
Total Amount | $ $ 178,873
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Schedule of November 2011 Lease (Details)
Nov. 30, 2021
USD ($)
$ / a
November 1, 2020 – 2024 [Member]  
Property, Plant and Equipment [Line Items]  
Per Acre Amount | $ / a 150
Total Amount | $ $ 13,500
November 1, 2025 – 2029 [Member]  
Property, Plant and Equipment [Line Items]  
Per Acre Amount | $ / a 200
Total Amount | $ $ 18,000
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MINERAL PROPERTIES (Details Narrative)
1 Months Ended
Nov. 08, 2021
USD ($)
a
tranche
mi
Oct. 29, 2014
USD ($)
a
well
mi
$ / gal
Mar. 06, 2013
USD ($)
a
shares
Nov. 01, 2011
USD ($)
a
Aug. 17, 2010
USD ($)
a
Aug. 31, 2021
USD ($)
Santa Fe Joint Venture [Member]            
Controlling ownership interest 50.50%          
Area of project | a 80          
Area of property covered under agreement | a 1,300          
Percentage of known mining district covered 75.00%          
Area of interest radius | mi 2          
Exercise period of option 60 days          
Texas General Land Office [Member] | August 2010 Lease [Member]            
Mining lease - acres | a         860  
Lease Bonus         $ 142,518  
Payment of lease bonus         44,718  
Lease bonus due         97,800  
Minimum advance royalty due         $ 500,000  
Production royalty of market value of uranium and fissionable materials         8.00%  
Production royalty of market value of other minerals         6.25%  
Lease extension period         1 year  
Payment of delay rental           $ 134,155
Texas General Land Office [Member] | November 2011 Lease [Member]            
Mining lease - acres | a       90    
Lease Bonus       $ 20,700    
Minimum advance royalty due       $ 50,000    
Production royalty of market value of uranium and fissionable materials       8.00%    
Production royalty of market value of other minerals       6.25%    
Lease extension period       1 year    
Payment of delay rental           $ 13,500
Rio Grande Foundation [Member] | March 2013 Lease [Member]            
Cash     $ 500,000      
Shares issued for lease | shares     1,063,830      
Value of shares issued for lease     $ 500,000      
Periodic payment for conservation efforts     $ 45,000      
Payment period for conservation efforts     10 years      
Surface rights - acres | a     54,990      
Rio Grande Foundation [Member] | October 2014 Surface Option and Water Lease [Member]            
Surface rights - acres | a   5,670        
Periodic option annual payment due   $ 10,000        
Ground water lease - acres | a   13,120        
Distance from project mine | mi   4        
Number of existing water wells | well   5        
Annual minimum production payment   $ 5,000        
Production payment, amount per gallon | $ / gal   0.00095        
Production payment, annual amount   $ 20,000        
Santa Fe Gold Corporation [Member] | Santa Fe Joint Venture [Member]            
Ownership interest 49.50%          
Greentech [Member] | Santa Fe Joint Venture [Member]            
Exploration activities and feasibility study funding $ 6,500,000          
Feasibility study number of tranches | tranche 5          
Percentage of initial equity entitled to receive 20.00%          
Percentage of total equity of joint venture 10.10%          
Option to participate in funding $ 15,000,000          
Entitled to receive additional percentage of initial equity 20.00%          
Option percentage of total equity 10.10%          
Option to receive percentage in exchange for funding 20.20%          
Greentech [Member] | Santa Fe Joint Venture [Member] | Minimum [Member]            
Feasibility study period 12 months          
Greentech [Member] | Santa Fe Joint Venture [Member] | Maximum [Member]            
Feasibility study period 15 months          
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SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 23 Months Ended
Dec. 31, 2021
Oct. 31, 2021
Jan. 31, 2020
Nov. 30, 2021
Nov. 30, 2020
Nov. 30, 2021
Aug. 31, 2021
Class of Stock [Line Items]              
Common stock, authorized       100,000,000   100,000,000 100,000,000
Common stock, par value (in dollars per share)       $ 0.01   $ 0.01 $ 0.01
Preferred stock, authorized       10,000,000   10,000,000 10,000,000
Preferred stock, par value (in dollars per share)       $ 0.001   $ 0.001 $ 0.001
Consulting agreements, number of shares     699,999        
Consulting agreements, number of shares per agreement     233,333        
Consulting agreements, value of shares     $ 448,000        
Share price     $ 0.64        
Director [Member] | Share-based Payment Arrangement [Member]              
Class of Stock [Line Items]              
Number of shares issued   41,231          
Compensation expense       $ 41,502      
Director [Member] | Share-based Payment Arrangement [Member] | Subsequent Event [Member]              
Class of Stock [Line Items]              
Number of shares issued 31,218            
Consultant [Member] | Share-based Payment Arrangement [Member]              
Class of Stock [Line Items]              
Compensation expense       56,000 $ 56,000    
Share vesting period     24 months        
Number of shares vested           641,665  
Number of shares issued           87,501  
Unrecognized stock compensation       37,333   $ 37,333  
Consultant [Member] | Share-based Payment Arrangement, Option [Member]              
Class of Stock [Line Items]              
Compensation expense       $ 73,788      
Number of options granted       43,500      
Fair value of options granted       $ 73,788      
Fair value assumptions - Risk free interest rate       0.25%      
Fair value assumptions - Volatilty       201.75%      
Fair value assumptions - Dividend yield       0.00%      
Fair value assumptions - Expected term       5 years      
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GRANT INCOME (Details Narrative) - USD ($)
3 Months Ended
Nov. 30, 2021
Nov. 30, 2020
Other Income and Expenses [Abstract]    
Grant income $ 374,633 $ 50,000
Grant related expenses $ 304,457 $ 0
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SUBSEQUENT EVENTS (Details Narrative) - Round Top Mountain Development Company, LLC [Member] - USD ($)
Dec. 02, 2021
May 17, 2021
Subsequent Event [Line Items]    
Ownership interest   20.00%
Subsequent Event [Member]    
Subsequent Event [Line Items]    
Ownership interest 20.00%  
Contribution to joint venture $ 305,000  
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DE 87-0294969 539 El Paso Street Sierra Blanca TX 79851 915 369-2133 Yes Yes Non-accelerated Filer true false false 72006514 4863190 5106653 28774 73029 4891964 5179682 29088 30834 181755 181755 12620 12620 5115427 5404891 69502 191394 10000 10000 79502 201394 79502 201394 0.001 0.001 10000000 10000000 0 0 0 0 0.01 0.01 100000000 100000000 71975296 71975296 71934065 71934065 719753 719341 41503356 41332478 -37187184 -36848322 5035925 5203497 5115427 5404891 71158 65778 339505 325277 410663 391055 -410663 -391055 1625 1372 70176 50000 71801 51372 -338862 -339683 -0.00 -0.00 71956719 71346419 -338862 -339683 1746 171290 190367 -44255 -37540 -121892 -49058 -243463 -160834 5500 24500 30000 -243463 -130834 5106653 2746451 4863190 2615617 92500 71934065 719341 41332478 -36848322 5203497 73788 73788 41231 412 97090 97502 -338862 -338862 71975296 719753 41503356 -37187184 5035925 71323278 713233 40376847 -38892524 2197556 190367 190367 61936 619 91881 92500 24500 24500 -339683 -339683 71385214 713852 40493228 -39232207 1974873 <p id="xdx_80A_eus-gaap--NatureOfOperations_zPuqqK2CXped" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt"><b>NOTE 1 – <span id="xdx_828_zU77FasNLjT7">GENERAL</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt"><i>Basis of Presentation</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">The accompanying unaudited interim consolidated financial statements of Texas Mineral Resources Corp. (“we”, “us”, “our”, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in our annual report on Form 10-K, for the year ended August 31, 2021, dated November 29, 2021 as filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2021 as reported in our annual report on Form 10-K, have been omitted.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt"><i>Principles of Consolidation</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">The consolidated financial statements include the accounts of Texas Mineral Resources Corp and its proportionate interest in the assets, liabilities, and operations of Round Top Mountain Development Company, LLC (“RTMD”). All significant intercompany balances and transactions have been eliminated.</p> <p id="xdx_807_eus-gaap--NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock_zOEisqXIO2b2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt"><b>NOTE 2 – <span id="xdx_82E_zqV87xYcSZ75">RECENT ACCOUNTING PRONOUNCEMENTS</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, <i>Debt – Debit with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. </i>This ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share (“EPS”) calculation in certain areas. This ASU is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. Management does not expect the adoption of this standard to have a significant impact on the Company’s financial position, results of operations or cash flows.</p> <p id="xdx_80A_eus-gaap--EquityMethodInvestmentsDisclosureTextBlock_zmTEcapzdQC9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; margin-bottom: 0pt"><b>NOTE 3 – <span id="xdx_821_zHEjNQUgOak6">JOINT VENTURE ARRANGEMENTS</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">In August 2018, the Company and Morzev Pty. Ltd. (“Morzev”) entered into an agreement (the “2018 Option Agreement”) whereby Morzev was granted the exclusive right to earn and acquire a <span id="xdx_90B_ecustom--InitialOwnershipInterestUnderAgreement_c20180801__20180831__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zz8zW6HJSRDe">70%</span> interest in the Company’s Round Top Project (“Project” or “Round Top” or “Round Top Project”) by financing $<span id="xdx_90E_ecustom--ContributionForInitialOwnershipInterestUnderAgreement_dm_c20180801__20180831__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_z46EANYVYA2h">10 million</span> of expenditures in connection with the Project, increasable to an <span id="xdx_908_ecustom--IncreasableOwnershipInterestUnderAgreement_c20180801__20180831__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zmhcJH5UYiWi">80%</span> interest for an additional $<span id="xdx_906_ecustom--AdditionalContributionForIncreasableOwnershipInterestUnderAgreement_dm_c20180801__20180831__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zNS2wQeYEu3k">3 million</span> payment to the Company. Morzev began operating as USA Rare Earth, LLC (“USARE”) and in May 2019 notified the Company that it was nominating USARE as the optionee under the terms of the 2018 Option Agreement. In August 2019, the Company and USARE entered into an amended and restated option agreement as further amended on June 29, 2020 (the “2019 Option Agreement” and collectively with the 2018 Option Agreement, the “Option Agreement”), whereby the Company restated its agreement to grant USARE the exclusive right to earn and acquire a <span id="xdx_90A_ecustom--InitialOwnershipInterestUnderAgreement_c20190801__20190831__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_z2LhhBizfhQh">70%</span> interest, increasable to an <span id="xdx_906_ecustom--IncreasableOwnershipInterestUnderAgreement_c20190801__20190831__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zpHmVaVhuMLj">80%</span> interest, in the Round Top Project. The 2019 Option Agreement has substantially similar terms to the 2018 Option Agreement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">On May 17, 2021, and in accordance with the terms of the Option Agreement, the Company and USARE entered into a contribution agreement (“Contribution Agreement”) whereby the Company and USARE contributed assets to RTMD, a wholly-owned subsidiary of the Company, in exchange for their ownership interests in RTMD, of which the Company now owns membership interests equating to <span id="xdx_90B_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember_zHm3hXow1A27" title="Ownership interest">20%</span> of RTMD and USARE owns membership interests equating to <span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zIWZlBbzdmV8" title="Controlling ownership interest">80%</span> of RTMD. Concurrently therewith, the Company and USARE as the two members entered into a limited liability company agreement (“Operating Agreement”) governing the operations of RTMD which contains customary and industry standard terms as contemplated by the Option Agreement. USARE will serve as manager of RTMD and Mr. Gorski, on behalf of the Company, will serve as one of the three members of the management committee.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">In connection with USARE meeting its obligations to acquire a <span id="xdx_90A_ecustom--InitialOwnershipInterestAcquired_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_z6KfBryIr8x6">70%</span> interest in the Round Top Project and exercising its right to an additional <span id="xdx_905_ecustom--AdditionalOwnershipInterestAcquired_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zVibXfsGNAnd">10%</span> interest, the Company received total consideration of approximately $<span id="xdx_900_ecustom--ConsiderationReceivedFromJointVenture_c20210516__20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember_zSsaCZ25suoe">3,728,000</span>, consisting of the $<span id="xdx_905_ecustom--ProceedsFromExerciseOfJointVentureOption_dm_c20210516__20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember_zFUjqobVg7n">3 million</span> upon exercise of the option and approximately $<span id="xdx_90E_ecustom--ProceedsFromPreviousAdvances_c20210516__20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember_zC1uKWP6imHe">728,000</span> in previous advances to the Company by USARE, and derecognized <span id="xdx_90C_ecustom--DerecognizedPercentageOfMineralProperties_c20210516__20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember_zh8bb8jrPbHb">80%</span> of the carrying amount of mineral properties, or approximately $<span id="xdx_908_ecustom--DerecognizedAmountOfMineralProperties_c20210516__20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember_z9GKO3abOgv3">402,000</span>. The resulting gain on sale of interest in mineral properties in the amount of approximately $<span id="xdx_906_eus-gaap--GainLossOnSaleOfInterestInProjects_c20210901__20211130__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember_zRZ0IP8XfPh1" title="Gain on sale of interest in projects">3,326,000</span> was recognized during the quarter ended May 31, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">Upon entry into the Contribution Agreement, the Company assigned the following contracts and assets to RTMD in exchange for its <span id="xdx_90B_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember_z7OVcKCTufR8">20%</span> membership interest in RTMD:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">●</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">the assignment and assumption agreement with respect to the mineral leases from the Company to RTMD;</p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">●</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">the assignment and assumption agreement with respect to the surface lease from the Company to RTMD;</p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">●</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">the assignment and assumption agreement with respect to the surface purchase option from the Company to RTMD;</p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">●</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">the assignment and assumption agreement with respect to the water lease from the Company to RTMD; and</p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">●</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">the bill of sale and assignment agreement of existing data with respect to RTMD owned by the Company.</p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">and USARE assigned the following assets to RTMD (or the Company, as applicable) for its <span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zXqOcs50pv48">80%</span> membership interest in RTMD:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">●</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">cash to RTMD to continue to fund RTMD operations in the amount of approximately $<span id="xdx_900_ecustom--CashAsssignedToJointVenture_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zUcO6lgmOVi6">3,761,750</span> comprising the balance of the $<span id="xdx_906_ecustom--ValueOfSpecifiedInterestInJointVenture_iI_dm_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_z5Uk94gBfE6g">10 million</span> required expenditure to earn a <span id="xdx_90F_ecustom--SpecifiedInterestPercentageOfJointVenture_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_znXcILDDe6P">70%</span> interest in RTMD;</p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">●</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">cash in the amount of $<span id="xdx_908_ecustom--CashAssignedForExerciseOfJointVentureOption_iI_dm_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember_zIwgrX81bIGe">3 million</span> to the Company upon exercise of the USARE option to acquire from the Company an additional <span id="xdx_902_ecustom--AdditionalOwnershipInterestAcquired_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zQ1GMj00v8a4">10%</span> interest in RTMD, resulting in the aggregate ownership interest of <span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zliqr67nqFfl">80%</span> in RTMD;</p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">●</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">bill of sale and assignment agreement of the Pilot Plant to RTMD;</p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">●</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">the assignment and assumption regarding relevant contracts and permits with respect to RTMD; and</p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 18pt; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">●</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">bill of sale and assignment agreement of existing data and intellectual property owned by USARE to RTMD.</p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">The Company accounts for its interest in RTMD using the proportionate consolidation method, which is an exception available to entities in the extractive industries, thereby recognizing its pro-rata share of the assets, liabilities, and operations of RTMD in the appropriate classifications in the financial statements. Subsequent to the sale of an undivided <span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_c20210517__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__srt--CounterpartyNameAxis__custom--USAREMember_zY92dqrK597k">80%</span> interest in RTMD, there was no significant activity in RTMD requiring recognition in the financial statements.</p> 0.70 10000000 0.80 3000000 0.70 0.80 0.20 0.80 0.70 0.10 3728000 3000000 728000 0.80 402000 3326000 0.20 0.80 3761750 10000000 0.70 3000000 0.10 0.80 0.80 <p id="xdx_802_eus-gaap--MineralIndustriesDisclosuresTextBlock_zmI73y5egth" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt"><b>NOTE 4 – <span id="xdx_828_zgOYbywJ8ZU6">MINERAL PROPERTIES</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">As set forth in Note 3- Joint Venture Arrangements, the ownership of and obligations associated with the leases and options maintained with the Texas Land Office and other third parties were transferred to RTMD in May 2021. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt"><span style="text-decoration: underline">August 2010 Lease</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">On August 17, 2010, the Company executed a new mining lease with the Texas General Land Office covering Sections 7 and 18 of Township 7, Block 71 and Section 12 of Block 72, covering approximately <span id="xdx_90C_ecustom--MiningLeaseAcres_iI_uAcre_c20100817__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--August2010LeaseMember_zaRcRsct4Q47">860</span> acres at Round Top Mountain in Hudspeth County, Texas. The mining lease issued by the Texas General Land Office gives the Company the right to explore, produce, develop, mine, extract, mill, remove, and market rare earth elements, all other base and precious metals, industrial minerals and construction materials and all other minerals excluding oil, gas, coal, lignite, sulfur, salt, and potash. The term of the lease is nineteen years so long as minerals are produced in paying quantities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">Under the terms of the lease, the Company will pay the State of Texas a total lease bonus of $<span id="xdx_90C_ecustom--LeaseBonus_c20100816__20100817__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--August2010LeaseMember_zoT7pAWyR3Jf" title="Lease Bonus">142,518</span>. The Company paid $<span id="xdx_903_ecustom--PaymentOfLeaseBonus_c20100816__20100817__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--August2010LeaseMember_znoDmsMio53h">44,718</span> upon the execution of the lease, and will pay the remaining $<span id="xdx_908_ecustom--LeaseBonusDue_iI_c20100817__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--August2010LeaseMember_zINcqkaJQgD6">97,800</span> upon submission of a supplemental plan of operations to conduct mining. Upon sale of any minerals removed from Round Top, the Company will pay the State of Texas a $<span id="xdx_90A_ecustom--MinimumAdvanceRoyaltyDue_iI_c20100817__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--August2010LeaseMember_zqyX2eo0uv6d">500,000</span> minimum advance royalty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">Thereafter, if paying quantities of minerals are obtained, the Company will pay the State of Texas a production royalty equal to eight percent (<span id="xdx_90C_ecustom--ProductionRoyaltyOfMarketValueOfUraniumAndFissionableMaterials_iI_c20100817__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--August2010LeaseMember_zQ8p2x4umCxd">8%</span>) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (<span id="xdx_90E_ecustom--ProductionRoyaltyOfMarketValueOfOtherMinerals_iI_dxL_c20100817__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--August2010LeaseMember_zs1j0ObHWBvf" title="::XDX::0.0625"><span style="-sec-ix-hidden: xdx2ixbrl0381">6 1/4%</span></span>) of the market value of all other minerals removed and sold. If paying quantities have not been obtained, the Company may pay additional delay rental fees to extend the term of the lease for successive one (<span id="xdx_90B_ecustom--LeaseExtensionPeriod_dtY_c20100816__20100817__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--August2010LeaseMember_z4BYYAwKw3We">1</span>) year periods pursuant to the following schedule: </p> <p id="xdx_892_ecustom--ScheduleOfAugust2010LeaseTableTextBlock_zL3dLStwxsRh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span id="xdx_8B1_z0mnv3cXNgT9" style="display: none; visibility: hidden">Schedule of August 2010 Lease</span></p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-right: auto; margin-left: auto; float: none; width: 66%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; border-top-style: none; border-right-style: none; border-left-style: none; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; margin-bottom: 0pt; text-align: center"><b>Per Acre </b><br/><b>Amount </b></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; border-top-style: none; border-right-style: none; border-left-style: none; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; margin-bottom: 0pt; text-align: center"><b>Total </b><br/><b>Amount </b></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #cdeeff"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">September 2, 2020 – 2024</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">$</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_989_ecustom--MineralPropertiesPerAcreAmount_iI_uUSDPerAcre_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyOneMember_z6Qmd6q7ioag" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right" title="Per Acre Amount">150</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">$</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_98C_ecustom--MineralPropertiesTotalLeaseAmount_iI_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyOneMember_zkjKTu1I5Idj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right" title="Total Amount">134,155</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">September 2, 2025 – 2029</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_98D_ecustom--MineralPropertiesPerAcreAmount_iI_uUSDPerAcre_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyTwoMember_z74q2HsLwiNf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right">200</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_984_ecustom--MineralPropertiesTotalLeaseAmount_iI_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyTwoMember_zTy3nwomhndj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right">178,873</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> </tr> </table> <p id="xdx_8A6_zQJMAlXaiRga" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">In August 2021, our joint venture partner paid the State of Texas a delay rental to extend the term of the lease in an amount equal to $<span id="xdx_900_ecustom--PaymentOfDelayRental_c20210801__20210831__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--August2010LeaseMember_zsWXVwqu0Wle">134,155</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt"><span style="text-decoration: underline">November 2011 Lease</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">On November 1, 2011, the Company executed a mining lease with the State of Texas covering approximately <span id="xdx_90B_ecustom--MiningLeaseAcres_iI_uAcre_c20111101__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--November2011LeaseMember_zD6KfyPNK21h">90</span> acres of land that is adjacent to the August 2010 Lease. Under the lease, the Company paid the State of Texas a lease bonus of $<span id="xdx_909_ecustom--LeaseBonus_c20111031__20111101__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--November2011LeaseMember_zQbhFbXPRkTg">20,700</span> upon the execution of the lease. Upon the sale of minerals removed from Round Top, the Company will pay the State of Texas a $<span id="xdx_902_ecustom--MinimumAdvanceRoyaltyDue_iI_c20111101__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--November2011LeaseMember_z32QAiYmc9fh">50,000</span> minimum advance royalty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">Thereafter, if paying quantities of minerals are obtained, the Company will pay the State of Texas a production royalty equal to eight percent (<span id="xdx_904_ecustom--ProductionRoyaltyOfMarketValueOfUraniumAndFissionableMaterials_iI_c20111101__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--November2011LeaseMember_zPrHaZcl3t5k">8%</span>) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (<span id="xdx_909_ecustom--ProductionRoyaltyOfMarketValueOfOtherMinerals_iI_dxL_c20111101__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--November2011LeaseMember_zchU5ZDGdkSa" title="::XDX::0.0625"><span style="-sec-ix-hidden: xdx2ixbrl0396">6 1/4%</span></span>) of the market value of all other minerals. If paying quantities have not been obtained, the Company may pay additional delay rental fees to extend the term of the lease for successive one (<span id="xdx_90C_ecustom--LeaseExtensionPeriod_dtY_c20111031__20111101__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--November2011LeaseMember_zqc8GDgWjmAi">1</span>) year periods pursuant to the following schedule:</p> <p id="xdx_892_ecustom--ScheduleOfNovember2011LeaseTableTextBlock_z7hB6XUuRA65" style="font: 10pt Times New Roman, Times, Serif; display: none; margin-top: 0pt; margin-bottom: 0pt; visibility: hidden">Schedule of November 2011 Lease</p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin: 0px auto; float: none; width: 60%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; border-top-style: none; border-right-style: none; border-left-style: none; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; margin-bottom: 0pt; text-align: center"><b>Per Acre </b><br/><b>Amount </b></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; border-top-style: none; border-right-style: none; border-left-style: none; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; margin-bottom: 0pt; text-align: center"><b>Total </b><br/><b>Amount </b></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #cdeeff"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">November 1, 2020 – 2024</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">$</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_985_ecustom--MineralPropertiesPerAcreAmount_iI_uUSDPerAcre_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyThreeMember_zEgBI2JqsU94" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right" title="Per Acre Amount">150</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">$</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_982_ecustom--MineralPropertiesTotalLeaseAmount_iI_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyThreeMember_zKIhmCvfK4D3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right" title="Total Amount">13,500</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">November 1, 2025 – 2029</p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p id="xdx_984_ecustom--MineralPropertiesPerAcreAmount_iI_uUSDPerAcre_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyFourMember_zSNIK363Jlp4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right">200</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p id="xdx_98F_ecustom--MineralPropertiesTotalLeaseAmount_iI_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyFourMember_zoA2szU99Sae" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right">18,000</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> </tr> </table> <p id="xdx_8AD_zzNaK0sR0h4c" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">In August 2021, our joint venture partner paid the State of Texas a delay rental to extend the term of the lease in an amount equal to $<span id="xdx_90F_ecustom--PaymentOfDelayRental_c20210801__20210831__srt--CounterpartyNameAxis__custom--TexasGeneralLandOfficeMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--November2011LeaseMember_zfMOZoHtYO5h">13,500</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt"><span style="text-decoration: underline">March 2013 Lease</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">On March 6, 2013, the Company purchased the surface lease at the Round Top Project, known as the West Lease, from the Southwest Wildlife and Range Foundation (since renamed the Rio Grande Foundation) for $<span id="xdx_902_ecustom--CashPaidForLeaseAssignment_c20130305__20130306__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--March2013LeaseMember_z48C3VZB2v5e" title="Cash">500,000</span> cash and <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesOther_c20130305__20130306__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--March2013LeaseMember_ziHCAj6U8Bak" title="Shares issued for lease">1,063,830</span> shares of common stock valued at $<span id="xdx_903_eus-gaap--StockIssuedDuringPeriodValueOther_c20130305__20130306__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--March2013LeaseMember_zRSl8XJNkdH8" title="Value of shares issued for lease">500,000</span>. The Company also agreed to support the Foundation through an annual payment of $<span id="xdx_905_ecustom--PeriodicPaymentForConservationEfforts_c20130305__20130306__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--March2013LeaseMember_zxoowFcdgkMb">45,000</span> for <span id="xdx_902_ecustom--PaymentPeriodForConservationEfforts_dt_c20130305__20130306__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--March2013LeaseMember_zjpKNKhboKXd">ten years</span> to support conservation efforts within the Rio Grande Basin, particularly Lake Amistad, a large and well-known fishing lake near Del Rio, Texas. The West Lease comprises approximately <span id="xdx_90D_ecustom--SurfaceRightsAcres_iI_c20130306__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--March2013LeaseMember_z7ywHaGQd3fk">54,990</span> acres. Most importantly, the purchase of the surface lease provides the Company unrestricted surface access for the potential development and mining of the Round Top Project.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="text-decoration: underline">October 2014 Surface Option and Water Lease</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">On October 29, 2014, the Company announced the execution of agreements with the Texas General Land Office securing the option to purchase the surface rights covering the potential Round Top Project mine and plant areas and, separately, a lease to develop the water necessary for the potential Round Top Project mine operations. The option to purchase the surface rights covers approximately <span id="xdx_90A_ecustom--SurfaceRightsAcres_iI_c20141029__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--October2014SurfaceOptionAndWaterLeaseMember_zCYNKuOjBIze">5,670</span> acres over the mining lease and the additional acreage adequate to site all potential heap leaching and processing operations as currently anticipated by the Company. The Company may exercise the option for all or part of the option acreage at any time during the sixteen-year primary term of the mineral lease. The option can be maintained through annual payments of $<span id="xdx_900_ecustom--PeriodicOptionAnnualPaymentDue_c20141028__20141029__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--October2014SurfaceOptionAndWaterLeaseMember_zrXeAu3ZxYlb">10,000</span>. The purchase price will be the appraised value of the surface at the time of option exercise. All annual payments have been made as of the date of this filing.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">The ground water lease secures the right to develop the ground water within a <span id="xdx_902_ecustom--GroundWaterLeaseAcres_iI_c20141029__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--October2014SurfaceOptionAndWaterLeaseMember_zbsuHNNjFzT3">13,120</span>-acre lease area located approximately <span id="xdx_906_ecustom--DistanceFromProjectMine_iI_uMile_c20141029__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--October2014SurfaceOptionAndWaterLeaseMember_zGxZj6POhnq1">4</span> miles from the Round Top deposit. The lease area contains <span id="xdx_900_ecustom--NumberOfExistingWaterWells_iI_dc_uWell_c20141029__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--October2014SurfaceOptionAndWaterLeaseMember_zoisd7J2pW7j">five</span> existing water wells. It is anticipated that all potential water needs for the Round Top Project mine operations would be satisfied by the existing wells covered by this water lease. This lease terms include an annual minimum production payment of $<span id="xdx_905_ecustom--AnnualMinimumProductionPayment_c20141028__20141029__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--October2014SurfaceOptionAndWaterLeaseMember_zjQrthWkgZY5">5,000</span> prior to production of water for the operation. After initiation of production, the Company will pay $<span id="xdx_90C_ecustom--ProductionPaymentAmountPerGallon_pdp3_uUSDPerGallon_c20141028__20141029__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--October2014SurfaceOptionAndWaterLeaseMember_zewtZTzzVJE8">0.95</span> per thousand gallons or $<span id="xdx_901_ecustom--LeaseProductionPaymentAnnualAmount_c20141028__20141029__srt--CounterpartyNameAxis__custom--RioGrandeFoundationMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--October2014SurfaceOptionAndWaterLeaseMember_zkKc8SzYMqU1">20,000</span> annually, whichever is greater. This lease remains in effect so long as the mineral lease is in effect. The minimum production payment for all fiscal years have been made as of the date of this filing.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><span style="text-decoration: underline">Santa Fe Gold Corporation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">On November 8, 2021, the Company entered into a mineral exploration and option agreement with Santa Fe Gold Corporation (“Santa Fe”). Under the agreement, the Company and Santa Fe plan to pursue, negotiate and subsequently enter into a joint venture agreement to jointly explore and develop a target silver property to be selected by the Company among patented and unpatented mining claims held by Santa Fe within the Black Hawk Mining District in Grant County, New Mexico. Completion of a joint venture agreement is subject to the successful outcome of a multi-phase exploration plan leading to a bankable feasibility study to be undertaken in the near future by the Company. Under the expected terms of the joint venture agreement, the Company would be project operator and initially own <span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_c20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember_z8BwGl7iAau3" title="Controlling ownership interest">50.5%</span> of the joint venture while Santa Fe would initially own <span id="xdx_90F_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_c20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--SantaFeGoldCorporationMember_zSH3xw0LR1xe" title="Ownership interest">49.5%</span>. Additional terms of the joint venture are to be negotiated between the Company and Santa Fe. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">Under the terms of the agreement, the Company plans to conduct a district-wide evaluation among the patented and unpatented claims held by Santa Fe, consisting of geologic mapping, sampling, trenching, radiometric surveying, geophysics, drilling and/or other methods as warranted. Based on the district-wide evaluation, the Company will designate one <span id="xdx_90B_ecustom--AreaOfProject_iI_uAcre_c20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember_zlENneXosA68">80</span>-acre tract as the “project area” and commence detailed exploration work. The property covered in the agreement is approximately <span id="xdx_900_ecustom--AreaOfPropertyCoveredUnderAgreement_iI_uAcre_c20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember_za5S1EHZpXI8">1,300</span> acres and covers approximately <span id="xdx_900_ecustom--PercentageOfKnownMiningDistrictCovered_iI_c20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember_zLN3SisVLjq7">75%</span> of the known mining district. The area to be studied also includes a <span id="xdx_902_ecustom--AreaOfInterestRadius_iI_dc_uMile_c20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember_zOvlhJtZJFU6">two</span>-mile radius “area of interest.” The agreement provides the Company with the option to designate any properties within the “area of interest” as “project area” properties. The term of the option is for so long as the Company continues to conduct exploration activities in the Project Area and can be exercised on <span id="xdx_90C_ecustom--ExercisePeriodOfOption_dt_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember_zv1tRVp36xab">60 days</span>’ notice to Santa Fe.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">Additionally, on November 8, 2021, the Company entered into a financing and purchase option agreement with Greentech Minerals Holdings, Inc. (“Greentech”). Under the agreement, Greentech is responsible for funding initial exploration activities and the bankable feasibility study, estimated to cost approximately $<span id="xdx_903_ecustom--ExplorationActivitiesAndFeasibilityStudyFunding_dm_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--GreentechMember_zynaIpzN2Cdj">6.5 million</span>, for the Santa Fe project exploration. It is contemplated that the bankable feasibility study will be designed to proceed in <span id="xdx_90A_ecustom--FeasibilityStudyNumberOfTranches_dc_uTranche_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--GreentechMember_zb1zcKfi2ju">five</span> tranches, each based on the success of the previous. It is estimated that completion of all tranches, if successful, would take <span id="xdx_901_ecustom--FeasibilityStudyPeriod_dxL_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--GreentechMember__srt--RangeAxis__srt--MinimumMember_zeU7KKx8ZXvh" title="::XDX::P12M"><span style="-sec-ix-hidden: xdx2ixbrl0442">twelve</span></span> to <span id="xdx_909_ecustom--FeasibilityStudyPeriod_dt_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--GreentechMember__srt--RangeAxis__srt--MaximumMember_zJQVmwi8yfVc">fifteen months</span>, depending on variables such as data analysis, weather and permitting.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">Upon successful completion of the study, Greentech will be entitled to received <span id="xdx_909_ecustom--PercentageOfInitialEquityEntitledToReceive_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--GreentechMember_z8tSvaxPCpPh">20%</span> of the Company’s initial equity in the proposed joint venture with Santa Fe, equal to approximately <span id="xdx_902_ecustom--PercentageOfTotalEquityOfJointVenture_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--GreentechMember_zmIbIrEz7JFl">10.1%</span> of the total equity of the joint venture. In addition, assuming Greentech exercises its option to participate in funding the Santa Fe project capital expenditures, currently anticipated to be approximately $<span id="xdx_902_ecustom--OptionToParticipateInFunding_dm_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--GreentechMember_zAHlAqMrVZi2">15 million</span>, it will be entitled to receive another <span id="xdx_90E_ecustom--EntitledToReceiveAdditionalPercentageOfInitialEquity_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--GreentechMember_z9Vn3R8KILk8">20%</span> of the Company’s initial equity in the future joint venture, equal to approximately an additional <span id="xdx_901_ecustom--OptionPercentageOfTotalEquity_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--GreentechMember_zLuKLZRoWMCc">10.1%</span>. In total, Greentech, in exchange for its funding, has the ability to earn at least <span id="xdx_905_ecustom--OptionToReceivePercentageInExchangeForFunding_c20211107__20211108__srt--OwnershipAxis__custom--SantaFeJointVentureMember__srt--CounterpartyNameAxis__custom--GreentechMember_zLM9uLW0u6q">20.2%</span> membership interest in the potential joint venture with Santa Fe assuming successful completion of the overall first project.</p> 860 142518 44718 97800 500000 0.08 P1Y <p id="xdx_892_ecustom--ScheduleOfAugust2010LeaseTableTextBlock_zL3dLStwxsRh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span id="xdx_8B1_z0mnv3cXNgT9" style="display: none; visibility: hidden">Schedule of August 2010 Lease</span></p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-right: auto; margin-left: auto; float: none; width: 66%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; border-top-style: none; border-right-style: none; border-left-style: none; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; margin-bottom: 0pt; text-align: center"><b>Per Acre </b><br/><b>Amount </b></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; border-top-style: none; border-right-style: none; border-left-style: none; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; margin-bottom: 0pt; text-align: center"><b>Total </b><br/><b>Amount </b></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #cdeeff"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">September 2, 2020 – 2024</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">$</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_989_ecustom--MineralPropertiesPerAcreAmount_iI_uUSDPerAcre_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyOneMember_z6Qmd6q7ioag" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right" title="Per Acre Amount">150</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">$</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_98C_ecustom--MineralPropertiesTotalLeaseAmount_iI_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyOneMember_zkjKTu1I5Idj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right" title="Total Amount">134,155</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">September 2, 2025 – 2029</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_98D_ecustom--MineralPropertiesPerAcreAmount_iI_uUSDPerAcre_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyTwoMember_z74q2HsLwiNf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right">200</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_984_ecustom--MineralPropertiesTotalLeaseAmount_iI_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyTwoMember_zTy3nwomhndj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right">178,873</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> </tr> </table> 150 134155 200 178873 134155 90 20700 50000 0.08 P1Y <p id="xdx_892_ecustom--ScheduleOfNovember2011LeaseTableTextBlock_z7hB6XUuRA65" style="font: 10pt Times New Roman, Times, Serif; display: none; margin-top: 0pt; margin-bottom: 0pt; visibility: hidden">Schedule of November 2011 Lease</p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin: 0px auto; float: none; width: 60%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; border-top-style: none; border-right-style: none; border-left-style: none; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; margin-bottom: 0pt; text-align: center"><b>Per Acre </b><br/><b>Amount </b></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; border-top-style: none; border-right-style: none; border-left-style: none; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; margin-bottom: 0pt; text-align: center"><b>Total </b><br/><b>Amount </b></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #cdeeff"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">November 1, 2020 – 2024</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">$</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_985_ecustom--MineralPropertiesPerAcreAmount_iI_uUSDPerAcre_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyThreeMember_zEgBI2JqsU94" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right" title="Per Acre Amount">150</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">$</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 10%; vertical-align: bottom"> <p id="xdx_982_ecustom--MineralPropertiesTotalLeaseAmount_iI_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyThreeMember_zKIhmCvfK4D3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right" title="Total Amount">13,500</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">November 1, 2025 – 2029</p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p id="xdx_984_ecustom--MineralPropertiesPerAcreAmount_iI_uUSDPerAcre_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyFourMember_zSNIK363Jlp4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right">200</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p id="xdx_98F_ecustom--MineralPropertiesTotalLeaseAmount_iI_c20211130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MineralPropertyFourMember_zoA2szU99Sae" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right">18,000</p> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"> </p> </td> </tr> </table> 150 13500 200 18000 13500 500000 1063830 500000 45000 P10Y 54990 5670 10000 13120 4 5 5000 0.00095 20000 0.505 0.495 80 1300 0.75 2 P60D 6500000 5 P15M 0.20 0.101 15000000 0.20 0.101 0.202 <p id="xdx_80A_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_znWYZoaBYnvg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; margin-bottom: 0pt"><b>NOTE 5 – <span id="xdx_82A_zLw6XmjDrLJa">SHAREHOLDERS’ EQUITY</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">The Company’s authorized capital stock consists of <span id="xdx_903_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20211130_zLEsnBk0czsb" title="Common stock, authorized"><span id="xdx_90F_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20210831_zS9djmBewfPj">100,000,000</span></span> shares of common stock, with a par value of $<span id="xdx_902_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20211130_zU6rW3h3gCgl" title="Common stock, per share"><span id="xdx_90B_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20210831_zP7Dj9vwtQRk" title="Common stock, par value (in dollars per share)">0.01</span></span> per share, and <span id="xdx_90E_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20211130_zuzabb41pTGc" title="Preferred stock, authorized"><span id="xdx_90E_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20210831_zjIpeRhu9nta">10,000,000</span></span> preferred shares with a par value of $<span id="xdx_905_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_c20211130_zLu4NegRBtM8" title="Preferred Stock, per share"><span id="xdx_90D_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_c20210831_zvnHwztSI7E6" title="Preferred stock, par value (in dollars per share)">0.001</span></span> per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">All shares of common stock have equal voting rights and, when validly issued and outstanding, are entitled to one non-cumulative vote per share in all matters to be voted upon by shareholders. Shares of common stock have no pre-emptive, subscription, conversion or redemption rights and may be issued only as fully paid and non-assessable shares. Holders of common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by the Company’s Board of Directors (the “Board”) out of funds legally available. In the event of a liquidation, dissolution or winding up of the affairs of the Company, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment or provision for all liabilities and any preferential liquidation rights of any preferred stock then outstanding.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">In October 2021, we issued <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedInPeriod_pid_c20211001__20211031__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--StockCompensationPlanMember_zpY2ImY1guij" title="Number of shares issued">41,231</span> shares of common stock related to Director fees earned and expensed during the year ended August 31, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">During the quarter ended November 30, 2021, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $<span id="xdx_90E_eus-gaap--AllocatedShareBasedCompensationExpense_c20210901__20211130__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--StockCompensationPlanMember_zdVM5wpYlYK7" title="Stock compensation">41,502</span> for director’s fees earned during the quarter. The Company issued the related <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedInPeriod_pid_c20211201__20211231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--StockCompensationPlanMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z0boVKQjOjbl">31,218</span> shares of common stock in December 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">During the quarter ended November 30, 2021, the Company granted a total of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210901__20211130__srt--TitleOfIndividualAxis__custom--ConsultantMember__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zg2UIQPh7vFl" title="Number of options granted">43,500</span> stock options with a fair value of $<span id="xdx_904_eus-gaap--StockGrantedDuringPeriodValueSharebasedCompensationGross_c20210901__20211130__srt--TitleOfIndividualAxis__custom--ConsultantMember__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zKMtpuLUFPc5" title="Fair value of options granted">73,788</span> on the date of grant to a consultant. The fair value of the options was determined using the Black-Scholes option-pricing model. The weighted average assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20210901__20211130__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--TitleOfIndividualAxis__custom--ConsultantMember_zil5fkVLoYpb" title="Fair value assumptions - Risk free interest rate">0.25</span>% (ii) estimated volatility of <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_c20210901__20211130__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--TitleOfIndividualAxis__custom--ConsultantMember_zH46eP4UCia5" title="Fair value assumptions - Volatilty">201.75</span>% (iii) dividend yield of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_c20210901__20211130__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--TitleOfIndividualAxis__custom--ConsultantMember_zRDxwVQVBmij" title="Fair value assumptions - Dividend yield">0.00</span>% and (iv) expected life of all options of <span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtp_c20210901__20211130__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--TitleOfIndividualAxis__custom--ConsultantMember_zrG6lURipLM7" title="Fair value assumptions - Expected term">5 years</span>. The Company recognized the full $<span id="xdx_902_eus-gaap--AllocatedShareBasedCompensationExpense_c20210901__20211130__srt--TitleOfIndividualAxis__custom--ConsultantMember__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z1V5kC7M9npk">73,788</span> as compensation expense during the three months ended November 30, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">In January 2020, the Company entered into three separate consulting agreements for total consideration of <span id="xdx_906_ecustom--ConsultingAgreementsNumberOfShares_pid_c20200101__20200131_zA8GV9Le4sma" title="Consulting agreements, number of shares">699,999</span> shares of common stock (<span id="xdx_90E_ecustom--ConsultingAgreementsNumberOfSharesPerAgreement_pid_c20200101__20200131_z3lYJ8ZJbVT8" title="Consulting agreements, number of shares per agreement">233,333</span> per agreement). The common stock underlying the agreements had a total value of $<span id="xdx_901_ecustom--ConsultingAgreementsValueOfShares_c20200101__20200131_zb48cBdltRS5" title="Consulting agreements, value of shares">448,000</span>, based on the $<span id="xdx_906_eus-gaap--SharePrice_iI_pid_c20200131_zUd1GRNz0JYb" title="Share price">0.64</span> quoted market price of the common stock on the agreement date. The right to receive the common stock is subject to ratable vesting over a <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_pid_dtM_c20200101__20200131__srt--TitleOfIndividualAxis__custom--ConsultantMember__us-gaap--AwardTypeAxis__us-gaap--StockCompensationPlanMember_zHmwdQLRuoCh" title="Share vesting period">24</span>-month period and at November 30, 2021, <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20200101__20211130__srt--TitleOfIndividualAxis__custom--ConsultantMember__us-gaap--AwardTypeAxis__us-gaap--StockCompensationPlanMember_zjo7fnJShKqf" title="Number of shares vested">641,665</span> shares had vested and <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20200101__20211130__srt--TitleOfIndividualAxis__custom--ConsultantMember__us-gaap--AwardTypeAxis__us-gaap--StockCompensationPlanMember_zLQexqmdtxwl" title="Number of shares issued">87,501</span> had been issued. The Company recognized approximately $<span id="xdx_907_eus-gaap--AllocatedShareBasedCompensationExpense_c20210901__20211130__srt--TitleOfIndividualAxis__custom--ConsultantMember__us-gaap--AwardTypeAxis__us-gaap--StockCompensationPlanMember_zcjfmAxj3Yx8" title="Compensation expense"><span id="xdx_900_eus-gaap--AllocatedShareBasedCompensationExpense_c20200901__20201130__srt--TitleOfIndividualAxis__custom--ConsultantMember__us-gaap--AwardTypeAxis__us-gaap--StockCompensationPlanMember_zsxBBJenD1y5" title="Compensation expense">56,000</span></span> of compensation expense under these consulting agreements during both the three months ended November 30, 2021 and 2020, which is included in general and administrative expenses in the accompanying consolidated statements of operations. The consultants have requested that the Company hold the remaining shares issuable under the agreements in trust to allow the consultants to request their shares as they vest. As of November 30, 2021, unrecognized stock based compensation related to the agreements totaled $<span id="xdx_90A_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20211130__srt--TitleOfIndividualAxis__custom--ConsultantMember__us-gaap--AwardTypeAxis__us-gaap--StockCompensationPlanMember_zt4DMpQwGMz5" title="Unrecognized stock compensation">37,333</span> which will be expensed in the next quarter.</p> 100000000 100000000 0.01 0.01 10000000 10000000 0.001 0.001 41231 41502 31218 43500 73788 0.0025 2.0175 0.0000 P5Y 73788 699999 233333 448000 0.64 P24M 641665 87501 56000 56000 37333 <p id="xdx_80E_eus-gaap--OtherNonoperatingIncomeAndExpenseTextBlock_zwS0XrJdcb0h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt"><b>NOTE 6 – <span id="xdx_82C_zntCEomAb2Ed">GRANT INCOME</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">Grants received from government and other agencies in advance of a specific project are deferred and recognized as other income in the statements of operations in the period they are earned and the related project costs are incurred. For the three months ended November 30, 2021 and 2020, the Company recognized $<span id="xdx_905_eus-gaap--OtherNonoperatingIncome_c20210901__20211130_zv27o2V0THH5" title="Grant income">374,633</span> and $<span id="xdx_907_eus-gaap--OtherNonoperatingIncome_c20200901__20201130_z8nlgTZDam0a">50,000</span>, respectively, of grant income which is presented in other income, net of grant related expenses totaling $<span id="xdx_909_eus-gaap--OtherNonoperatingExpense_c20210901__20211130_zw1H27xR3SOa" title="Grant related expenses">304,457</span> and $<span id="xdx_900_eus-gaap--OtherNonoperatingExpense_c20200901__20201130_zLaRu3hCezrl">0</span>, respectively.</p> 374633 50000 304457 0 <p id="xdx_80D_eus-gaap--SubsequentEventsTextBlock_z57Apo0p1Gvk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt"><b>NOTE 7 – <span id="xdx_82E_zTw3HtSPMMje">SUBSEQUENT EVENTS</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; margin-bottom: 0pt">As a part of our obligation for our <span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_c20211202__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zxq6g1G2Qadl" title="Ownership interest">20%</span> ownership in the joint venture as disclosed in Note 3, on December 2, 2021 we contributed approximately $<span id="xdx_909_ecustom--ContributionToJointVenture_c20211201__20211202__srt--OwnershipAxis__custom--RoundTopMountainDevelopmentCompanyLLCMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zwTyH4G0NQN3">305,000</span> to the joint venture in accordance with the Contribution Agreement between the Company and USARE.</p> 0.20 305000 EXCEL 33 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0 ( N#+E0'04UB@0 +$ 0 9&]C4')O<',O87!P+GAM M;$V./0L",1!$_\IQO;=!P4)B0-!2L+(/>QLOD&1#LD)^OCG!CVX>;QA&WPIG M*N*I#BV&5(_C(I(/ !47BK9.7:=N')=HI6-Y #OGDK7A.YNJQ<&4GPZ4A!0W_J=0U[R;UEA_6\#MI7E!+ P04 M " +@RY4WK@;O^X K @ $0 &1O8U!R;W!S+V-O&ULS9+! 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