[X]
|
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for quarter period ended
|
[ ]
|
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________.
|
Colorado | 84-1116515 | ||
(State of incorporation) | (IRS Employer Identification No.) |
|
-
|
A merger or an outright sale either for cash or stock and other consideration contingent upon identifying a suitable buyer.
|
|
-
|
Rehabilitating the Gold Bar Mill for toll refining which is defined as processing ore through our mill for a fixed fee or toll that is produced by a third-party mining company from its mine on its current site, although we do not have the capital resources to do so;
|
|
-
|
Engaging in a joint venture or other strategic transaction with other parties that may be able to produce ore from their mines and wish to utilize the mill.
|
C.
|
Cash and Marketable Securities
|
June 30, 2011
|
December 31, 2010
|
|||||||
Cash and cash equivalents
|
$ | 383,366 | $ | 1,670,949 | ||||
Marketable securities*
|
799,800 | 1,738,000 | ||||||
Prepaid expenses
|
1,100 | 1,100 | ||||||
Accounts receivable
|
9,514 | - | ||||||
Current Assets
|
1,193,780 | 3,410,049 | ||||||
Current Liabilities
|
(283,639 | ) | (1,241,453 | ) | ||||
Working Capital
|
$ | 910,141 | $ | 2,168,596 |
June 30, 2011
|
December 31, 2010
|
|||||||
Authorized Capital
|
(shares)
|
(shares)
|
||||||
Common Stock
|
2,000,000,000 | 2,000,000,000 | ||||||
Preferred Stock
|
10,000,000 | 10,000,000 | ||||||
Series A
|
3,500,000 | 3,500,000 | ||||||
Series B
|
4,500,000 | 4,500,000 | ||||||
Series C
|
1 | 1 | ||||||
Series D
|
999,000 | 999,000 | ||||||
Remaining undesignated
|
1,000,999 | 1,000,999 | ||||||
Outstanding Capital
|
||||||||
Common Stock
|
14,525,044 | 9,335,445 | ||||||
Preferred Stock
|
||||||||
Series A
|
- | - | ||||||
Series B
|
80,000 | 80,000 | ||||||
Series C
|
- | 1 | ||||||
Series D
|
- | 568,886 |
1.
|
On June 13, 2011, we issued 1,251,316 shares of our restricted common stock to the Dewey Williams Profit Sharing Plan & Trust for the conversion of a debenture. Principal and accrued interest totaled $62,566. The issuance was completed at a price of $0.05 per share in accordance with the terms of the debenture. We relied on the exemptions from registration provided in Sections 3(a)(9), 4(2) and 4(5) of the Securities Act of 1933, as amended (the “Securities Act”) for this issuance because the issuance was an exchange with an existing security holder, did not involve a public offering and was made without general solicitation or advertising. The investor previously represented to us that he is an “accredited investor”, and that he acquired the debenture for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.
|
2.
|
On June 13, 2011, we issued 22,077 shares of our restricted common stock to Dewey Williams for the conversion of a debenture. Principal and accrued interest totaled $3,312. The issuance was completed at a price of $0.15 per share in accordance with the terms of the debenture. We relied on the exemptions from registration provided in Sections 3(a)(9), 4(2) and 4(5) of the Securities Act for this issuance because the issuance was an exchange with an existing security holder, did not involve a public offering and was made without general solicitation or advertising. The investor previously represented to us that he is an “accredited investor”, and that he acquired the debenture for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.
|
3.
|
On June 27, 2011, we issued 975,493 shares of our restricted common stock to Golden Eagle Mineral Holdings, Inc. in exchange for one share of our Series C Preferred Stock value at $975,493. The issuance was completed at a price of $0.75 per share in accordance with the terms of the Series C Preferred Stock. We relied on the exemptions from registration provided in Sections 3(a)(9), 4(2) and 4(5) of the Securities Act for this issuance because the issuance was an exchange with an existing security holder, did not involve a public offering and was made without general solicitation or advertising. The investor previously represented to us that he is an “accredited investor”, and that it acquired the Series C Preferred Stock for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.
|
4.
|
On June 27, 2011, we issued 1,124,775 shares of our restricted common stock to Jose Edmundo Arauz in exchange for 224,955 shares of our Series D Preferred Stock value at $224,955. The issuance was completed at a price of $0.20 per share in accordance with the terms of the Series D Preferred Stock. We relied on the exemptions from registration provided in Sections 3(a)(9), 4(2) and 4(5) of the Securities Act for this issuance because the issuance was an exchange with an existing security holder, did not involve a public offering and was made without general solicitation or advertising. The investor previously represented to us that he is an “accredited investor”, and that it acquired the Series D Preferred Stock for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof. Further, because this issuance was made to a non-U.S. person we also relied on Regulation S for this issuance.
|
5.
|
On June 27, 2011, we issued 1,244,965 shares of our restricted common stock to Golden Eagle Mineral Holdings, Inc. in exchange for 248,931 shares of our Series D Preferred Stock value at $248,993. The issuance was completed at a price of $0.20 per share in accordance with the terms of the Series D Preferred Stock. We relied on the exemptions from registration provided in Sections 3(a)(9), 4(2) and 4(5) of the Securities Act for this issuance because the issuance was an exchange with an existing security holder, did not involve a public offering and was made without general solicitation or advertising. The investor previously represented to us that he is an “accredited investor”, and that it acquired the Series D Preferred Stock for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.
|
6.
|
On June 27, 2011, we issued 375,000 shares of our restricted common stock to Robert Chramosta in exchange for 75,000 shares of our Series D Preferred Stock value at $75,000. The issuance was completed at a price of $0.20 per share in accordance with the terms of the Series D Preferred Stock. We relied on the exemptions from registration provided in Sections 3(a)(9), 4(2) and 4(6) of the Securities Act for this issuance because the issuance was an exchange with an existing security holder, did not involve a public offering and was made without general solicitation or advertising. The investor previously represented to us that he is an “accredited investor”, and that it acquired the Series D Preferred Stock for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.
|
7.
|
On June 27, 2011, we issued 100,000 shares of our restricted common stock to Lone Star Equity Group, LLC in exchange for 20,000 shares of our Series D Preferred Stock value at $20,000. The issuance was completed at a price of $0.20 per share in accordance with the terms of the Series D Preferred Stock. We relied on the exemptions from registration provided in Sections 3(a)(9), 4(2) and 4(6) of the Securities Act for this issuance because the issuance was an exchange with an existing security holder, did not involve a public offering and was made without general solicitation or advertising. The investor previously represented to us that he is an “accredited investor”, and that it acquired the Series D Preferred Stock for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.
|
8.
|
On June 30, 2011, we issued 71,267 shares of our restricted common stock to Richard Newberg for the conversion of a debenture. Principal and accrued interest totaled $14,491. The issuance was completed at a price of $0.2033 per share in accordance with the terms of the debenture. We relied on the exemptions from registration provided in Sections 3(a)(9), 4(2) and 4(6) of the Securities Act for this issuance because the issuance was an exchange with an existing security holder, did not involve a public offering and was made without general solicitation or advertising. The investor previously represented to us that he is an “accredited investor”, and that he acquired the debenture for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.
|
GOLDEN EAGLE INTERNATIONAL, INC. | |
(Golden Eagle) | |
September 6, 2011 | /s/ Terry C. Turner |
Terry C. Turner | |
President and Principal Executive Officer
|
|
September 6, 2011 | /s/ Tracy A. Madsen |
Tracy A. Madsen | |
Principal Accounting Officer
|
Golden Eagle International, Inc.
|
||||||||
Consolidated Balance Sheets
|
(Unaudited)
|
|||||||
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
|
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash & cash equivalents
|
$ | 383,366 | $ | 1,670,949 | ||||
Marketable securities
|
799,800 | 1,738,000 | ||||||
Prepaid expenses
|
1,100 | 1,100 | ||||||
Accounts receivable
|
9,514 | - | ||||||
Total current assets
|
1,193,780 | 3,410,049 | ||||||
PROPERTY AND EQUIPMENT
|
||||||||
Plant and mill - idle
|
3,980,000 | 3,980,000 | ||||||
Office equipment
|
9,204 | 9,204 | ||||||
3,989,204 | 3,989,204 | |||||||
Less accumulated depreciation and impairment
|
(9,050 | ) | (8,948 | ) | ||||
Total property and equipment
|
3,980,154 | 3,980,256 | ||||||
Total Assets
|
$ | 5,173,934 | $ | 7,390,305 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable and accrued expenses
|
$ | 199,524 | $ | 210,713 | ||||
Deferred wages
|
- | 51,782 | ||||||
Notes payable
|
15,000 | 401,410 | ||||||
Debentures (net)
|
50,000 | 108,542 | ||||||
Accrued interest payable
|
19,115 | 469,006 | ||||||
Total current liabilities
|
283,639 | 1,241,453 | ||||||
Common Stock payable
|
- | - | ||||||
Total Liabilities
|
283,639 | 1,241,453 | ||||||
Commitments and contingencies
|
- | - | ||||||
STOCKHOLDERS' EQUITY
|
||||||||
Preferred stock, par value $.01 per share; 10,000,000 shares authorized,
|
||||||||
40,000 and 648,887 issued and outstanding
|
800 | 6,489 | ||||||
Common stock, par value $.0001 per share; 2,000,000,000 authorized shares;
|
||||||||
14,525,044 and 9,335,445 issued and outstanding shares, respectively
|
1,452 | 934 | ||||||
Additional paid-in capital
|
64,292,073 | 64,172,272 | ||||||
Accumulated (deficit)
|
(59,132,469 | ) | (58,616,843 | ) | ||||
Accumulated other comprehensive income
|
(271,560 | ) | 586,000 | |||||
Total stockholders' equity
|
4,890,296 | 6,148,852 | ||||||
Total Liabilities and Stockholder's Equity
|
$ | 5,173,934 | $ | 7,390,305 |
Golden Eagle International, Inc.
|
|||||||||||||||||
Consolidated Statements of Operations and Other Comprehensive Income (Unaudited)
|
|||||||||||||||||
For the Three and Six Months Ended
|
|
|
|||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||||
REVENUES
|
$ | - | $ | - | $ | - | $ | - | |||||||||
OPERATING EXPENSES
|
|||||||||||||||||
Exploration and development
|
5,906 | 13,297 | 9,544 | 21,522 | |||||||||||||
General and administration
|
209,679 | 183,471 | 439,253 | 410,450 | |||||||||||||
Depreciation and depletion
|
51 | 51 | 102 | 102 | |||||||||||||
Total operating expenses
|
215,636 | 196,819 | 448,899 | 432,074 | |||||||||||||
OPERATING (LOSS)
|
(215,636 | ) | (196,819 | ) | (448,899 | ) | (432,074 | ) | |||||||||
OTHER INCOME (EXPENSE)
|
|||||||||||||||||
Interest expense
|
(10,139 | ) | (148,787 | ) | (48,253 | ) | (202,320 | ) | |||||||||
Loss on sale of securities
|
(12,016 | ) | - | (12,016 | ) | - | |||||||||||
Accretion of note discount
|
- | - | (6,458 | ) | (23,208 | ) | |||||||||||
Total other (expense)
|
(22,155 | ) | (148,787 | ) | (66,727 | ) | (225,528 | ) | |||||||||
Loss before income taxes
|
(237,791 | ) | (345,606 | ) | (515,626 | ) | (657,602 | ) | |||||||||
Income taxes
|
- | - | - | - | |||||||||||||
NET LOSS ON CONTINUING OPERATIONS
|
(237,791 | ) | (345,606 | ) | (515,626 | ) | (657,602 | ) | |||||||||
DISCONTINUED OPERATIONS,NET OF TAX
|
|||||||||||||||||
Loss on discontinued operations (Bolivia) net of tax
|
- | - | - | (107,877 | ) | ||||||||||||
Loss discontinued operations (Nevada) net of tax
|
- | - | - | (202,688 | ) | ||||||||||||
Loss on sale of business unit (Bolivia) net of tax
|
- | - | - | (8,261 | ) | ||||||||||||
NET (LOSS ) ON DISCONTINUED OPERATIONS
|
- | - | - | (318,826 | ) | ||||||||||||
NET (LOSS)
|
$ | (237,791 | ) | $ | (345,606 | ) | $ | (515,626 | ) | $ | (976,428 | ) | |||||
Dividends for preferred shareholders
|
$ | - | $ | - | $ | - | $ | - | |||||||||
NET (LOSS) AVAILABLE FOR COMMON STOCK SHAREHOLDERS
|
$ | (237,791 | ) | $ | (345,606 | ) | $ | (515,626 | ) | $ | (976,428 | ) | |||||
Basic and diluted gain (loss) per share on continuing operations
|
$ | (0.02 | ) | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.21 | ) | |||||
Basic and diluted gain (loss) per share on discontinued operations
|
- | - | - | $ | (0.07 | ) | |||||||||||
Weighted average shares outstanding - basic
|
9,723,979 | 5,448,019 | 10,456,464 | 4,703,199 | |||||||||||||
OTHER COMPREHENSIVE INCOME
|
|||||||||||||||||
Unrealized (loss) on securities
|
(479,560 | ) | - | (857,560 | ) | - | |||||||||||
NET COMPREHENSIVE (LOSS)
|
$ | (717,351 | ) | $ | (345,606 | ) | $ | (1,373,186 | ) | $ | (976,428 | ) |
Golden Eagle International, Inc.
|
|||||||||||
Consolidated Statements of Cash Flows
|
|||||||||||
For the Six Months Ended (Unaudited)
|
|||||||||||
June, 30
|
June 30,
|
||||||||||
2011
|
2010
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|||||||||||
Net (loss)
|
$ | (515,626 | ) | $ | (976,429 | ) | |||||
Adjustments to reconcile net (loss)
|
|||||||||||
to net cash (used) by operating activities:
|
|||||||||||
Officer compensation contributed
|
30,000 | - | |||||||||
Stock issued for services
|
4,200 | 140,197 | |||||||||
Stock issued for interest
|
15,368 | 54,196 | |||||||||
Bad debt expense
|
- | 202,688 | |||||||||
Depreciation
|
102 | 102 | |||||||||
Accretion of note discount
|
6,458 | 23,208 | |||||||||
Asset impairment
|
- | 54,763 | |||||||||
Stock based compensation
|
- | 8,726 | |||||||||
Loss on sale of marketable securities
|
12,016 | ||||||||||
Loss on disposition of asset
|
- | (8,261 | ) | ||||||||
Changes in operating assets and liabilities
|
|||||||||||
Decrease (increase) in accounts receivable
|
(9,514 | ) | 79,874 | ||||||||
Decrease (increase) in prepaid expense and other costs
|
- | 7,984 | |||||||||
Increase (decreasein related party payable
|
- | 25,000 | |||||||||
Increase (decrease) in deferred wages
|
(51,782 | ) | 144,253 | ||||||||
Increase (decrease) in accounts payable
|
(11,189 | ) | (63,491 | ) | |||||||
Increase (decrease) in accrued interest
|
(449,891 | ) | 141,974 | ||||||||
Net cash flows (used by) operating activities
|
(969,858 | ) | (165,216 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|||||||||||
Proceeds from sale of marketable securities
|
68,685 | - | |||||||||
Investment in property and equipment
|
- | (24,113 | ) | ||||||||
Net cash flows used in investing activities
|
68,685 | (24,113 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|||||||||||
Borrowings from related parties
|
- | 61,050 | |||||||||
Repayments to related parties
|
- | (12,650 | ) | ||||||||
Proceeds from notes payable
|
- | 130,800 | |||||||||
Repayments of notes payable
|
(386,410 | ) | - | ||||||||
Proceeds from debentures
|
- | 13,000 | |||||||||
Net cash flows (used in) provided by financing activities
|
(386,410 | ) | 192,200 | ||||||||
NET INCREASE (DECREASE) IN CASH
|
(1,287,583 | ) | 2,871 | ||||||||
CASH - BEGINNING OF PERIOD
|
1,670,949 | 2,029 | |||||||||
CASH - END OF PERIOD
|
$ | 383,366 | $ | 4,900 | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
|||||||||||
Non cash financing and investing activities (see note B)
|
|||||||||||
Preferred and common stock issued for debt
|
$ | 65,000 | $ | 275,105 | |||||||
Cash paid for
|
|||||||||||
Interest
|
$ | 464,733 | $ | 600 | |||||||
Income taxes
|
- | - |
Results of Operations for the six months ended June 30, 2010 (in US $)
|
||||||||||||
As
Previously Reported
|
As
Reclassified
|
Change
|
||||||||||
OPERATING EXPENSES:
|
||||||||||||
Exploration and development
|
29,807 | 21,522 | (8,285 | ) | ||||||||
General and administrative
|
454,081 | 410,197 | (43,631 | ) | ||||||||
Bad debt
|
202,688 | - | (202,688 | ) | ||||||||
Loss on sale of asset
|
(8,261 | ) | - | (8,261 | ) | |||||||
Asset impairment
|
(54,763 | ) | - | (54,763 | ) | |||||||
Other, net
|
(1,198 | ) | - | (1,198 | ) | |||||||
Loss on discontinued operations (Bolivia)
|
- | (107,877 | ) | 107,877 | ||||||||
Loss on discontinued operations (Nevada)
|
- | (202,688 | ) | 202,688 | ||||||||
Loss on sale of business unit (Bolivia)
|
- | (8,261 | ) | 8,261 |
Type
|
Balance
January 1,
2011
|
Additions
|
Payments
and
Conversions
|
Beneficial
Conversion
Feature
Discount
|
Carrying
value at
June 30,
2011
|
Interest
accrued
|
||||||||||||||||||
Other notes payable (in default)
|
$ | 53,000 | $ | - | $ | (53,000 | ) | $ | - | $ | - | $ | - | |||||||||||
Other notes payable
|
348,410 | - | (333,410 | ) | - | 15,000 | 2,828 | |||||||||||||||||
Total other notes payable
|
$ | 401,410 | $ | - | $ | (386,410 | ) | $ | - | $ | 15,000 | $ | 2,828 | |||||||||||
Debentures
|
$ | 115,000 | $ | - | $ | (65,000 | ) | $ | - | $ | 50,000 | $ | 16,285 | |||||||||||
Total debt
|
$ | 509,952 | $ | - | $ | (451,410 | ) | $ | - | $ | 65,000 | $ | 19,114 |
During the six months ended June 30, 2011 and June 30, 2010 we recognized $48,253 and $202,320 of interest expense respectively. All of the above notes payable are classified as current.
|
Date: September 6, 2011
|
/s/ Terry C. Turner
Terry C. Turner, President
Principal Executive Officer
|
Date: September 6, 2011
|
/s/ Tracy A. Madsen
Tracy A. Madsen
Principal Financial Officer
|
Consolidated Balance Sheets (Parenthetical) (USD $)
|
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Statement of Financial Position [Abstract] | Â | Â |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, Authorized | 10,000,000 | 10,000,000 |
Preferred stock, Issued | 40,000 | 648,887 |
Preferred stock, outstanding | 40,000 | 648,887 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, Authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, Issued | 14,525,044 | 9,335,445 |
Common stock, outstanding | 14,525,044 | 9,335,445 |
Document and Entity Information (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Aug. 15, 2011
|
|
Document And Entity Information | Â | Â |
Entity Registrant Name | GOLDEN EAGLE INTERNATIONAL INC. | Â |
Entity Central Index Key | 0000869531 | Â |
Document Type | 10-Q | Â |
Document Period End Date | Jun. 30, 2011 | |
Amendment Flag | false | Â |
Current Fiscal Year End Date | --12-31 | Â |
Is Entity a Well-known Seasoned Issuer? | No | Â |
Is Entity a Voluntary Filer? | No | Â |
Is Entity's Reporting Status Current? | Yes | Â |
Entity Filer Category | Smaller Reporting Company | Â |
Entity Public Float | Â | $ 860,681 |
Entity Common Stock, Shares Outstanding | Â | 14,525,044 |
Document Fiscal Period Focus | Q2 | Â |
Document Fiscal Year Focus | 2011 | Â |
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Loss Per Share
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Notes to Financial Statements | Â |
Note C - Loss Per Share | The computation of diluted earnings per common share is based on the weighted average number of shares outstanding as of June 30 of each year plus the common stock equivalents. The inclusion of these shares would have resulted in a weighted average shares fully diluted number that was anti-dilutive for 2011 and 2010 and as such they are excluded from the weighted average shares basic and diluted calculation. |
Basis of Presentation
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Notes to Financial Statements | Â |
Note A - Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of the Company are presented in accordance with the requirements for Form 10-Q and Article 8-03 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) have been condensed or omitted pursuant to such SEC rules and regulations. The accompanying financial statements are unaudited. However, in our opinion, the accompanying financial statements reflect all adjustments, consisting of only normal recurring adjustments, necessary for fair presentation. These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2010.
The preparation of financial statements in accordance with accounting principles generally accepted in the United States (US GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying footnotes. Our actual results could differ materially from these estimates. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Report and any documents incorporated herein by reference, as well as the Annual Report on Form 10-K for the year ended December 31, 2010. |
Notes Payable
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Notes to Financial Statements | Â | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note D - Notes Payable | A summary of our notes payable as of June 30, 2011 and related changes for the six-months ended June 30, 2011 are as follows:
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Recent accounting pronouncements
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6 Months Ended |
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Jun. 30, 2011
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Notes to Financial Statements | Â |
Note E - Recent accounting pronouncements | There were no new accounting pronouncements issued that are expected to have a significant impact our financial position, results of operations, or cash flows.
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Marketable Securities
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6 Months Ended |
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Jun. 30, 2011
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Notes to Financial Statements | Â |
Note F - Marketable Securities | As part of our settlement with YNG, we received 2,000,000 restricted common shares of YNG with an initial fair value of $1,152,000 (utilizing the sale price quoted on the Toronto Stock Exchange of $.576 a Level 1 input). We have classified the shares as available for sale.
During the quarter ended June 30, 2011 we sold 140,000 shares of YNG stock at prices between $.50 and $.47 per share for proceeds totaling $68,685 at a realized loss of $12,016.
As of June 30, 2011 we had 1,860,000 shares available for sale. Subsequent adjustments to the fair value of the shares are reflected in the carrying amount as of the balance sheet date, and fluctuations in the fair value affect other comprehensive income. As of June 30, 2011, the market price for YNG shares was $.43. |
Organization and Nature of Business
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Jun. 30, 2011
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Notes to Financial Statements | Â | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note B - Organization and Nature of Business | Organization and Nature of Business
As of June 30, 2011 our only significant capital asset is the Gold Bar Mill. During 2010, we disposed of our previous Bolivian activity and we settled litigation with Yukon-Nevada Gold and its subsidiary Queenstake Resources (collectively referred to as YNG) following YNGs termination of the operating agreement for the Jerritt-Canyon Gold Bar Mill.
The Gold Bar Mill (Mill), our only remaining significant non-current asset, is currently idle and has been since we acquired it in 2004. We continue to monitor the Mill for impairment on a periodic basis or whenever circumstances arise that indicate the carrying amount of the Mill may not be recoverable. An impairment loss is recognized when the carrying value of the Mill exceeds the estimated undiscounted future cash flows. As of and through June 30, 2011 we have not recognized any impairment on the Mill.
Reclassifications
Due to the disposition of our Bolivian operations as well as the settlement of our contract dispute with Yukon Nevada Gold related to the operation of the Jerritt Canyon Mill we have made significant reclassification adjustments to the comparative 2010 financial information contained in this report. The significant reclassifications are as follows:
The reclassifications did not impact our previously reported financial position, results of operations, or cash flows for the 2010 periods presented in this Form 10-Q.
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