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5. Joint Ventures
 9 Months Ended
Sep. 30, 2018
Notes  
5. Joint Ventures

5.             Joint Ventures

 

New Jersey Mill Joint Venture Agreement

 

The Company owns 65% of the New Jersey Mill Joint Venture and has significant influence in its operations. Thus the venture is included in the consolidated financial statements along with presentation of the non-controlling interest. At September 30, 2018 and December 31, 2017, an account receivable existed with Crescent Silver, LLC, the other joint venture participant (“Crescent”), for $3,714 and $4,682, respectively, for shared operating costs as defined in the JV agreement. Crescent’s non-controlling interest in the JV changed during the three and nine months ended September 30, 2018 and 2017 as follows:

 

 

 

Nine months ended September 30,

 

2018

 

2017

 

 

 

 

 

 

Beginning balance

$

3,112,294

 

$

3,142,312

Contribution from non-controlling interest

 

17,170

 

 

22,630

Net loss attributable to non-controlling interest

 

(44,413)

 

 

(43,107)

Ending balance

$

3,085,051

 

$

3,121,835

 

 

Butte Highlands JV, LLC (“BHJV”)

 

On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Company’s common stock valued at $210,000 for a total consideration of $435,000. Highland Mining, LLC (“Highland”) is the other 50% owner and manager of the joint venture. Under the agreement, Highland will fund all future project exploration and mine development costs. The agreement stipulates that Highland is manager of BHJV and will manage BHJV until such time as all mine development costs, less $2 million are distributed to Highland out of the proceeds from future mine production. The Company has determined that because it does not currently have significant influence over the joint venture’s activities, it accounts for its investment on a cost basis. The Company purchased the interest in the BHJV to provide additional opportunities for exploration and development and expand the Company’s mineral property portfolio.