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15. Acquisition GCJV

12 Months Ended

Dec. 31, 2015

15. Acquisition of GCJV

In December of 2015 the Company became the 100% owner of the GCJV (Note 9). The Company received the 52.22% share of GCJV held by MUSA in exchange for $180,000 and a 2% NSR royalty payable to MUSA on all future gold production from the property. In addition to the assets of GCJV, a note payable of $1,250,000 for the patented mining claims was assumed by the Company.

A summary of the acquisition is as follows:

		December 2, 2015
Consideration
Cash for MUSA’s 52.22% interest	$	180,000
Assumed fair value of NJMC’s 47.77%		164,696
Total consideration	$	344,696
Fair value of assets acquired
Cash	$	524
Prepaid claim fees		9,946
Buildings and equipment		131,700
Golden Chest Mineral property		1,427,050
Fair value of liabilities
Note payable on property		(1,094,007)
Payables		(130,517)
Net assets acquired	$	344,696

As the Company’s carrying value of their previously held 47.77% interest was Nil at the time of acquisition, a gain was recorded as remeasurement of previously held interest. The fair value of the remeasurement was established based upon the purchase price of 52.22% of GCJV held by MUSA for $180,000 which resulted in an impued full value for the property of $344,696 which implied that the original investment held a value of $164,696.

The note discount was calculated at an assumed rate of 10% for the remaining 10 quarterly payments on the full note value of $1,125,000 at the date of acquisition resulting in a discount of $155,992 to be amortized over the remainder of the note. At December 31, 2015 the balance remaining of the discount was $128,642.

The Company purchased the outstanding share in GCJV to consolidate ownership and facilitate exploration and mining plans going forward.

GCJV had minimal operating activity over the past several years with the exception of the lease of the Skookum project which in 2015 included $1,093,317 in depreciation expenses and lease payments of $125,000 per quarter that were made by Juniper.

The unaudited pro forma financial information below represents the combined results of the Company’s operations as if the GCJV acquisition had occurred at the beginning of the period presented. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have occurred if the acquisition had taken place at the beginning of the period presented, nor is it indicative of future operating results.

		2015		2014
Revenue	$	1,891,173	$	97,258
Operating expenses		(3,273,219)		(1,549,870)
Net loss from continuing operations		(1,382,046)		(1,452,612)
Amortization of discount on note payable		(96,110)		(158,873)
Net loss per common share, basic and diluted	$	0.02	$	0.02