Subsequent Events

12 Months Ended

Dec. 31, 2024

Subsequent Events [Abstract]

Subsequent Events [Text Block]

11. Subsequent Events

On January 27, 2025, the Company announced a strategic partnership with Swiss-based MFD Investment Holdings SA ("MFD").  The letter agreement signed outlines that MFD will provide additional funding, contributing $1,000,000 in project-related expenditures as well as providing technical support for project development. This partnership adds additional financial strength in advancing South Mountain's technical and economic studies.

On February 7, 2025, the Company`s Board of Directors issued 3,045,000 stock options to officers and directors of the Company. The options are exercisable on or before February 7, 2030, and have an exercise price of $0.10.  The options were fully vested upon grant.

The Company received a subscription agreement from an investor for the purchase of 2,600,000 shares of common stock and 2,600,000 common stock purchase warrants for total consideration of $130,000. As of December 31, 2024, the investor had not received the stock certificates from Computershare, and the funds remained held in escrow at Canaccord Genuity. On February 24, 2025, the Company received net proceeds of $129,900 after deducting $100 in bank charges, for a total of $130,000, for the investor subscription agreement for 2,600,000 shares of common stock.

The Company entered into a lease agreement with Ronald Acree on June 20, 2008, for 113 acres at $20 per acre, with a six-year term and a ten-year renewal option at $30 per acre. Beginning in June 2025, the 17th lease year, the rate will increase to $50 per acre, resulting in an annual payment of $5,650. For the year ended December 31, 2024, total lease payments were $3,390. The lease rate will further increase to $75 per acre after the 30th anniversary.

The Company renewed its office operating lease on February 1, 2025, for 12 months. During the lease term, the Company will not recognize a right to use asset and related lease liability on the balance sheet for the lease renewal.