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Long-Term Debt Obligations | 12 Months Ended
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Dec. 31, 2012
Long-Term Debt Obligations [Abstract] |
Long-Term Debt Obligations | 13. Long-Term Debt Obligations Long-term debt obligations at December 31, 2012 and 2011 consisted of the following:
Note Description |  | 2012 |  |  | 2011 |
$5,000,000 Note Payable (Auramet Facility) - Principal payable in semi-monthly installments of 310 ounces of gold with the final payment due on or before July 31, 2013. Secured by a security interest in all personal property and certain real estate owned by the Company. At December 31, 2012, the note payable included imputed interest of $546,890. |  | $ | 5,422,200 |  |  | $ | - |
$5,000,000 Note Payable (Catepillar Equipment Facility) - Principal and interest at 5.85% payable in monthly installments of $179,556 with the final payment due on or before March 31, 2015. Secured by certain equipment of the Company. |  |  | 4,405,906 |  |  |  | - |
$2,500,000 Note Payable (Dayton Property "Golden Goose") - Principal is payable in quarterly installments of $50,000 increasing to $125,000 in October 2013, with a balloon payment for the remaining principal due on or before August 1, 2017. Secured by first deed of trust on the land. At December 31, 2012, the note payable was net of imputed interest of $325,938. |  |  | 2,050,966 |  |  |  | - |
$725,000 Note Payable (Donavan Property) - Principal and interest at 6% payable in monthly installments of $6,178 with final payment due on or before July 1, 2015. Secured by deeds of trust on land and unpatented claims. |  |  | 647,409 |  |  |  | 680,882 |
$340,000 Note Payable (Gold Hill Hotel) - Principal and interest at 4.5% payable in monthly installments of $2,601 with the final payment due on or before April 30, 2026. Secured by first deed of trust on rental property. |  |  | 313,938 |  |  |  | 330,613 |
$300,000 Note Payable (White House) - Principal and interest at 4.5% payable in monthly installments of $1,520 with the final payment due on or before April 1, 2017. Secured by first deed of trust on the land. |  |  | 296,798 |  |  |  | - |
$240,000 Note Payable (Railroad & Gold Property) - Principal and interest at 4.5% payable in monthly installments of $1,835 with the final payment due on or before April 1, 2017. Secured by first deed of trust on the land. |  |  | 232,421 |  |  |  | - |
Notes Payable - Other - Various other notes payable with interest rates between 4.5% and 8% payable in monthly installments due on or before September 1, 2019. Secured by first deed of trust on various property owned by the Company. |  |  | 362,017 |  |  |  | 425,586 |
Subtotal |  |  | 13,731,655 |  |  |  | 1,437,081 |
Less current portion |  |  | (7,720,764 | ) |  |  | (138,245 | )
Long-term portion of long-term obligations |  | $ | 6,010,891 |  |  | $ | 1,298,836 |
In July 2012, the Company entered into a Master Loan and Security Agreement and other arrangements with Caterpillar Financial Services Corporation (the "Cat Equipment Facility") pursuant to which the Company may borrow up to $5 million secured by certain equipment of the Company. During 2012, the Company borrowed $5 million under the Cat Equipment Facility. The Cat Equipment Facility bears interest at a rate of 5.85% with a term of 30 months except in the event of a default, including the occurrence of certain liquidity events, in which case the principal balance will bear interest at a rate of the lesser of 18% per annum or the highest applicable rate allowed by law. In July 2012, the Company entered into an agreement with Resource Income Fund ("RIF"), with Auramet Trading, LLC ("Auramet") acting as gold agent, pursuant to which the Company may borrow up to $5 million outstanding at any one time (the "Auramet Facility"). The Company's obligations under the Auramet Facility are secured by a security interest in all personal property of the Company and certain real estate owned by the Company within the Company's starter mine (the "Starter Mine Patents"). The proceeds will be repaid through the delivery of 3,720 ounces of gold payable in 12 semi-monthly deliveries of 310 ounces each beginning February 2013 and ending July 2013, or December 2013, if any amounts are redrawn under the agreement. The agreement is non-interest bearing except in the event of a default, in which case the balance would then bear interest at the lesser rate of 15% per annum or the highest applicable rate allowed by law. In connection with entry into the Auramet Facility, the Company also entered into a purchase and sale agreement with Auramet, and the Company entered into a trading agreement the terms of which will govern all transactions of metals between Auramet and the Company. The Company drew down $5 million under the agreement in July 2012. The proceeds from the agreement have been recorded using an imputed interest rate of approximately 24%. The agreements contain a covenant that require the Company to maintain a minimum liquidity balance of $3 million (including cash and cash equivalents and short-term securities). The agreements additionally contain customary representations, warranties, affirmative covenants, negative covenants, and events of default, as well as conditions to borrowings. In connection with the Auramet Facility, the Company granted RIF a call option to purchase 5,950 ounces of gold at a strike price of $2,000 per ounce, exercisable on, and expiring on, July 24, 2013. The value of the option of $124,691 was accounted for as a reduction to the debt proceeds and will be amortized as interest expense over the term of the agreement. Additionally, the Company purchased an option to put 10,000 ounces of gold to Auramet at a strike price of $1,250 per ounce for $172,500. The put option expires on January 29, 2013 and has no significant value at December 31, 2012. Each of these options has been recognized in the accompanying consolidated balance sheets at fair value as a derivative asset or liability by the Company. Changes in the fair value of these derivatives have been recognized currently within the consolidated statements of operations. As the Auramet Facility is repaid in ounces of gold, the Company has recorded an embedded forward derivative that has been recognized as a derivative asset or liability based on changes in the forward prices of gold as of each measurement date. Changes in the fair value of this derivative have been recognized currently within the consolidated statements of operations. At December 31, 2012, this forward derivative liability was valued at $297,451. Future maturities of long-term debt obligations are as follows:
Years Ended December 31: |  |  |
2013 |  | $ | 7,720,764 |
2014 |  |  | 2,609,347 |
2015 |  |  | 1,646,966 |
2016 |  |  | 499,872 |
2017 |  |  | 1,024,653 |
Thereafter |  |  | 230,053 |
|  | $ | 13,731,655 |

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 + Details
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