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11. Equity | 12 Months Ended
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Dec. 31, 2017
Notes |
11. Equity | 11. Equity The Company has authorized 200,000,000 shares of no par common stock at December 31, 2017 and 2016. In addition, the Company has authorized 1,000,000 shares of no par preferred stock, none of which had been issued at December 31, 2017 or 2016. The Company began a private placement in the fourth quarter 2016 which ran through the first quarter of 2017. Each unit consisted of two shares of the Company’s common stock and one stock purchase warrant with each warrant exercisable for one share of the Company’s stock at $0.20 through February 2020. As of December 31, 2016, 537,500 units were sold consisting of 1,075,000 shares and 537,500 warrants for net proceeds of $92,500 after deducting the 10% commission and other related placement fees. In March 2017, the Company completed the private placement. In 2017, an additional 3,200,000 shares and 1,600,000 warrants were sold for net proceeds in 2017 of $291,000 after deducting the 10% commission. At closing of the private placement in March 2017, the total units for the private placement were 2,137,500 units, consisting of 4,275,000 shares and 2,137,500 warrants. Net proceeds of the private placement in total were $383,500. The Company offered an additional private placement in March 2017. The private placement was for 4,250,000 units, each unit consisting of two shares of the Company’s stock and one stock purchase warrant with each warrant exercisable for one share of the Company’s stock at $0.20 through April 2020. No commission was paid with this private placement. Proceeds were $750,000 in cash and $100,000 exchanged for a note and interest payable to the Company’s president, John Swallow. The Company’s concentrate broker, H&H Metals Corp., who purchases the Company’s gold flotation concentrate product participated in this private placement purchasing 1,250,000 units for $250,000. The Company offered an additional private placement in November 2017. The private placement was for 1,708,334 units, each unit consisting of two shares of the Company’s stock and one stock purchase warrant with each warrant exercisable for one share of the Company’s stock at $0.20 for 36 months. No commission was paid with this private placement. Proceeds were $350,000 in cash and $60,000 exchanged for a note and interest payable to the Company’s president, John Swallow. H&H Metals Corp participated in this private placement purchasing 1,041,667 units for $250,000. In October 2017, the Company utilized proceeds of the private placement to pay the remaining debt due on the Golden Chest property of $250,000. In 2016, the Company issued 500,000 shares of common stock pursuant to the exercise of stock purchase options at $0.10 per share for $16,250 cash and $33,750 in exchange for a reduction of a note payable with a related party. During the year ended December 31, 2016 the Company issued 3,000,000 shares of common stock for the purchase of a 50% interest in Butte Highlands joint venture at $0.07 per share for a value of $210,000 and 175,760 shares of common stock for the acquisition of GF&H at $0.15 per share for a value of $26,364. Fair values were based on the trading price of the Company’s stock on the date of the respective transactions. During the year ended December 31, 2016, the Company issued 682,796 shares of its common stock valued at $71,507 for professional services. Fair value was based on the trading price of the Company’s stock on the dates of each transaction. S tock Purchase Warrants Outstanding Transactions in common stock purchase warrants for the year ended December 31, 2017 and 2016 are as follows:
|  | Number of Warrants |  | Exercise Prices
Balance December 31, 2015 |  | 10,200,000 |  | $0.10-0.20
Issued in connection with private placement |  | 537,500 |  | 0.20
Balance December 31, 2016 |  | 10,737,500 |  | 0.10-0.20
Issued in connection with private placements |  | 7,558,334 |  | 0.20
Expired |  | (9,000,000) |  | 0.15-0.20
Balance December 31, 2017 |  | 9,295,834 |  | $0.10-0.20
These warrants expire as follows:
Shares | Exercise Price | Expiration Date
1,200,000 | $0.10 | August 11, 2019
2,137,500 | $0.20 | February 28, 2020
4,250,000 | $0.20 | March 28, 2020
1,708,334 | $0.20 | November 3, 2020
9,295,834 |  |
Stock Options In April 2014 the Board of Directors of the Company established a stock option plan to authorize the granting of stock options to officers and employees. Upon exercise of the options shares are issued from the available authorized shares of the Company. In 2016 2,750,000 options were granted to management, directors, consultants, and employees of the Company. Of these options 1,225,000 vested in the fourth quarter of 2016 and the remaining 1,525,000 vested in 2017. The options expire three years after their grant date. Each option allows the holder to purchase one share of the Company’s stock at $0.15 prior to expiration. Compensation cost of $268,032 is associated with the options. Of this, $151,143 was recognized in 2016, and $116,889 was recognized in 2017. In 2017, the Company granted a total of 662,500 options to consultants and employees of the Company. These options vest in 2018. The options had a fair value of $66,539 which is being recognized ratably over the vesting period. Compensation cost of $24,518 was recognized in 2017. The remaining unrecognized compensation cost of $42,021 is expected to be recognized in 2018. Total compensation cost for granted options of $141,407 and $220,734 was recognized in the years ended December 31, 2017 and 2016, respectively. The 2016 amount includes $69,591 of compensation costs for options granted in 2014 and 2015 that vested in 2016. The weighted average fair value of stock option awards granted and the key assumptions used in the Black-Scholes valuation model to calculate the fair value of the options are as follows:
|  |  | For the Year Ended December 31,
|  |  | 2017 |  | 2016 |
Weighted average fair value |  |  | $0.10 |  | $0.097 |
Options issued |  |  | 662,500 |  | 2,750,000 |
Exercise price, minimum |  |  | $0.15 |  | $0.15 |
Exercise price, maximum |  |  | $0.18 |  |  |
Expected term (in years) |  |  | 3.0 |  | 3.0 |
Risk-free rate, minimum |  |  | 1.48% |  | 0.91% |
Risk-free rate, maximum |  |  | 1.98% |  | 1.47% |
Volatility, minimum |  |  | 135.7 |  | 147.1 |
Volatility, maximum |  |  | 142.3% |  | 148.2% |
|  | Number of Options |  | Exercise Prices
Balance January 1, 2016 |  | 5,750,000 |  | 0.10-0.15
Exercised |  | (500,000) |  | 0.10
Issued |  | 2,750,000 |  | 0.15
Expired |  | (500,000) |  | 0.11
Balance December 31, 2016 |  | 7,500,000 |  | 0.10-0.15
Expired |  | (500,000) |  | 0.10
Issued |  | 662,500 |  | 0.15-0.18
Balance December 31, 2017 |  | 7,662,500 |  | 0.10-0.18
Exercisable at December 31, 2017 |  | 7,000,000 | $ | 0.10-0.15
At December 31, 2017, the stock options have an intrinsic value of approximately $137,500 and have a weighted average remaining term of 2.23 years.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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