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Property, Plant and Equipment | 12 Months Ended
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Dec. 31, 2014
Property, Plant and Equipment [Abstract] |
Property, Plant and Equipment | 5. PROPERTY, PLANT AND EQUIPMENT
|  | December 31, 2014 |  |  | December 31, 2013 |
|  | Net book value |  |  | Net book value |
Uranium plant |  | $ | 8,921 |  |  | $ | 9,190 |
Mineral rights and properties |  |  | 22,063 |  |  |  | 19,750 |
Vehicles |  |  | 264 |  |  |  | 568 |
Other property, plant and equipment |  |  | 1,482 |  |  |  | 1,333 |
Total |  | $ | 32,730 |  |  | $ | 30,841 |
Asset Exchange Agreement with Rio Grande Resources Corporation On September 5, 2014, the Company, its wholly owned subsidiary Uranco, Inc. and Rio Grande Resources Corporation (“RGR”) entered into an Asset Exchange Agreement whereby the Company agreed to acquire from RGR certain uranium properties located in South Texas near the Company’s processing facilities, including, among others, the Alta Mesa Este, Butler Ranch and Sejita Dome exploration projects. In exchange for these South Texas properties, the Company agreed to transfer to RGR two parcels of fee-owned mineral rights and a royalty interest in the Roca Honda area of west-central New Mexico. The Company retained certain leases, mining claims and fee-owned mineral interest on separate parcels in the Roca Honda area. On November 6, 2014, after completing customary due diligence and satisfying certain closing conditions, the Company and RGR closed the transaction and effectuated the exchange of properties. The Asset Exchange Agreement was determined to be a non-monetary exchange of assets having commercial substance in accordance with ASC Topic 845 which requires the assets received in an asset exchange be recorded at the fair value of the assets relinquished. The Company determined the fair value of the Roca Honda assets relinquished to be $2,313. This fair value was determined based upon the per pound value of similar transactions involving unproved uranium assets within the last 3 years. The carrying value of the Roca Honda assets relinquished in the transaction had previously been written off to nil in prior years and, as a result, the entire $2,313 was recognized as a gain on non-monetary exchange of assets and included in the Company’s Consolidated Statements of Operations. Impairment of Property, Plant and Equipment The Company recorded the following impairment charges for 2014 and 2013 related to its uranium projects and processing facilities:
|  | For the years ended December 31, |
|  | 2014 |  |  | 2013 |
Kingsville Dome Project |  | $ | 160 |  |  | $ | 474 |
Rosita Project |  |  | - |  |  |  | 2,821 |
Vas quez Project |  |  | - |  |  |  | 276 |
Ambrosia Lake Project |  |  | - |  |  |  | 512 |
Other |  |  | - |  |  |  | 12 |
Total Impairment |  | $ | 160 |  |  | $ | 4,095 |
The Company recorded an impairment charge of $160 on its Kingsville Dome uranium plant equipment for 2014. This impairment charge relates to the physical deterioration of the plant equipment due to the plant sitting idle and its proximity to the Texas coastline. The net carrying value of the Kingsville Dome plant equipment after impairment is $461 which is calculated as $2,461 book value less a $2,000 liability related to dismantling and decontaminating. The Company also used a third-party estimate of resale value to determine that no further impairment was needed as the Company’s third-party estimate of resale value exceeded the $461 net carrying value of the Kingsville Dome plant equipment. The Company recorded an impairment charge of $4,095 for 2013. Of this amount, $3,331 was due to the declining uranium price market in 2013 which resulted in the write-down of its Rosita Project and its Ambrosia Lake Project to nil. The Company also recorded an impairment charge of $684 related to capitalized asset retirement obligation costs as its Kingsville Dome and Vasquez Projects. As the carrying values related to these projects had previously been written down to nil, these amounts were considered an impairment charge during the year. The remaining impairment charge of $80 was related to the physical deterioration of its Kingsville Dome plant equipment. Mineral Property Expenses During the years ending December 31, 2014 and 2013, the Company’s mineral property expenses were $3,502 and $5,215, respectively. Included within mineral property costs are standby costs for our three idled South Texas ISR projects along with holding and evaluation costs for all properties. The Company spent the following amounts for each of its material properties:
|  | For the years ended December 31, |
|  | 2014 |  |  | 2013 |
Kingsville Dome Project |  | $ | 862 |  |  | $ | 2,378 |
Rosita Project |  |  | 817 |  |  |  | 508 |
Vasquez Project |  |  | 518 |  |  |  | 120 |
Alta Mesa Este Exploration Project |  |  | 11 |  |  |  | - |
Butler Ranch Exploration Project |  |  | 32 |  |  |  | - |
Sejita Dome Exploration Project |  |  | - |  |  |  | - |
Crownpoint Project |  |  | 5 |  |  |  | 268 |
Churchrock Project |  |  | 109 |  |  |  | 250 |
Cebolleta Property |  |  | 571 |  |  |  | 585 |
Juan Tafoya Property |  |  | 413 |  |  |  | 474 |
Roca Honda Project |  |  | 80 |  |  |  | 75 |
Nose Rock Project |  |  | - |  |  |  | - |
West Largo Project |  |  | 12 |  |  |  | 22 |
Other |  |  | 72 |  |  |  | 535 |
Total expense for the period |  | $ | 3,502 |  |  | $ | 5,215 |
Uranium Properties Kingsville Dome Project The Kingsville Dome project consists of mineral leases from private landowners on about 2,434 gross and 2,227 net acres located in central Kleberg County, Texas. The leases provide for royalties based upon a percentage of uranium sales of 6.25% to 9.375%. The leases have expiration dates ranging from 2000 to 2007 however, we hold most of these leases by production and with a few minor exceptions all the leases contain clauses that permit us to extend the leases not held by production by payment of an annual per acre royalty ranging from $10 to $30. We have paid such royalties on all material acreage. Rosita Project and Rosita South Property The Rosita project consists of mineral leases from private landowners on about 3,377 gross and net acres located in north-central Duval County, Texas. The Rosita South property consists of mineral leases from private land owners on about 1,795 gross acres and 1,479 net acres located in Duval County near the Company’s Rosita project. The leases provide for sliding scale royalties based on a percentage of uranium sales. Royalty percentages on average increase from 6.25% up to 18.25% when uranium prices reach $80.00 per pound. The leases have expiration dates extending out to 2015. We are holding these leases by payment of rentals ranging from $10 to $30 per acre. Vasquez Project The Vasquez project is comprised of a mineral lease on 872 gross and net acres located in southwestern Duval County, in South Texas. The primary term expired in February 2008; however we hold the lease by production and reclamation activities. The lease provides for royalties based upon 6.25% of uranium sales below $25.00 per pound and royalty rate increases on a sliding scale up to 10.25% for uranium sales occurring at or above $40.00 per pound. Alta Mesa Este Exploration Project As discussed above, the Alta Mesa Este exploration project was acquired as part of the Company’s Asset Exchange Agreement. Our property holdings in the project area include six leases covering approximately 2,916 gross, or 2,841 net acres of mineral rights. The leases are held through the payment of annual rental fees, which range from $20 to $50 per acre. Any production derived from the properties would be subject to the payment of production royalties of 10% of the gross sales. All of our leases are within a single contiguous block of land. Butler Ranch Exploration Project As discussed above, the Butler Ranch exploration project was acquired as part of the Company’s Asset Exchange Agreement. The property is comprised of nine fee leases that cover an area of about 2,653 gross or 2,592 net acres of mineral rights. We can hold the leases by payment of annual rental fees, ranging from $10 to $25 per acre. Each of the leases makes provision for the payment of royalties of 10% of sales to the property owners. Leases have initial terms of 8 to 10 years and have provisions to “hold by drilling” and identifying uranium mineralization on the specific properties. Sejita Dome Exploration Project As discussed above, the Sejita Dome exploration project was acquired as part of the Company’s Asset Exchange Agreement. The project area is comprised of fifteen partly contiguous fee (private) mineral leases covering an area of 3,263 gross or 2,176 net acres. The leases are held through the payment of annual rental fees ranging from $10 to $75 per acre. Uranium production from the leased lands is subject to the payment of fixed-rate or sliding scale royalties that range from 4.5% to 20% of sales price. Churchrock Project The Churchrock project encompasses about 3,458 gross and net acres. The properties that comprise the Churchrock project are located in McKinley County, New Mexico and consist of three parcels, known as Section 8, Section 17 and Mancos. None of these parcels lies within the area generally recognized as constituting the Navajo Reservation. We own the mineral estate in fee for both Section 17 and the Mancos properties. We own patented and unpatented lode mining claims on Section 8. The surface estate on Section 17, Mancos Section 13 and Mancos Section 7 is owned by the U.S. Government and held in trust for the Navajo Nation (the “Nation”). On those sections we have royalty obligations ranging from 5% to 61/4% and a 2% overriding royalty obligation to the Nation for surface use agreements. The total royalties on Section 8 depend on the sales’ price of uranium. Aggregate royalties are potentially as much as 33% at the current price of uranium. Crownpoint Project The Crownpoint project is located in the San Juan Basin, 22 miles northeast of the Company’s Churchrock deposits and 35 miles northeast of Gallup, New Mexico, adjacent to the town of Crownpoint. The Crownpoint project consists of 640 gross and 556 net acres. The Company holds the mineral rights in the northwest 1/4 of Section 9, Township 17 North Range 13 West with 9 unpatented lode mining claims, and the mineral rights in the southwest 1/4 of Section 24, Township 17 North Range 13 West with 10 unpatented lode mining claims. In the southeast 1/4 of Section 24, Township 17 North, Range 13 West, the Company owns in fee a 40% interest in the minerals on approximately 140 acres and hold 100% of the minerals on 20 additional acres with two unpatented lode mining claims. In the northeast 1/4 of Section 25, Township 17 North, Range 13 West, the Company holds the minerals with eight unpatented lode mining claims. The unpatented lode mining claims are held through the payment of an annual maintenance fee of $155.00 per claim to the BLM. While the rights to the minerals on the unpatented lode mining claims are subject to annual renewal through the payment of the annual maintenance fees, the rights to the minerals on the fee-owned lands are not subject to any renewal process as long as the Company maintains its ownership of the subject property. Cebolleta Project In connection with the merger of Neutron we acquired the Cebolleta Lease with La Merced del Pueblo de Cebolleta (the “Cebolleta Land Grant”), a privately held land grant, to lease the Cebolleta Project, which is composed of approximately 6,717 acres of fee (deeded) surface and mineral rights. The Cebolleta Lease provides for: (i) a term of ten years and so long thereafter as Cibola is conducting operations on the Cebolleta Project; (ii) initial payments to the Cebolleta Land Grant of $5,000; (iii) a recoverable reserve payment equal to $1.00 multiplied by the number of pounds of recoverable uranium reserves upon completion of a feasibility study to be completed within six years, less (a) the $5,000 referred to in (ii) above, and (b) not more than $1,500 in annual advance royalties previously paid pursuant to (iv); (iv) annual advanced royalty payments of $500; (v) gross proceeds royalties from 4.50% to 8.00% based on the then current price of uranium; (vi) employment opportunities and job-skills training for the members of the Cebolleta Land Grant and (vii) funding of annual higher education scholarships for the members of the Cebolleta Land Grant. The Cebolleta Lease provides Cibola with the right to explore for, mine, and process uranium deposits present on the Cebolleta Project. In February 2012, Cibola entered into an Amendment of its Mining Lease Agreement (the “Cebolleta Lease Amendment”) amending the Cebolleta Lease, subject to approval of the Thirteenth Judicial District. Pursuant to the Cebolleta Lease Amendment, the date for the completion of the feasibility study was extended from April 2013 to April 2015. In addition, the date may be further extended subject to a reduction in the $6,500 initial payment and annual advance royalty payments deduction to the recoverable reserve payment. Juan Tafoya Project In connection with the merger with Neutron we acquired the fee interest in 4,097 acres in northwestern New Mexico of fee (deeded) surface and mineral rights owned by the Juan Tafoya Land Corporation (“JTLC”). The Juan Tafoya Project is located approximately 45 miles west-northwest of the city of Albuquerque, and 25 miles northeast of the town of Laguna. The lease has a term of ten years, and it can be extended on a year-to-year basis thereafter, so long as we are conducting operations on the property. Additionally, the lease required: (i) an initial payment of $1,250; (ii) annual rental payments of $225 for the first five years of the lease and $337.5 for the second five years; (iii) after the second five years, annual base rent of $75 per acre; (iv) a gross proceeds royalty of 4.65% to 6.5% based on the then current price of uranium; (v) employment opportunities and job-skills training programs for shareholders of the JTLC or its heirs, (vi) periodic contributions to a community projects fund if mineral production commences from the Juan Tafoya property and (vii) funding of a scholarship program for the shareholders of the JTLC or its heirs. The Company is obligated to make the first ten years’ annual rental payments notwithstanding the right to terminate the JT Lease at any time, unless (a) the market value of uranium drops below $25 per pound, (b) a government authority bans uranium mining on the Juan Tafoya property, or (c) the deposit is deemed uneconomical by an independent engineering firm. Roca Honda Project The Roca Honda Project lies about four miles northwest of the village of San Mateo in McKinley County, New Mexico. The Company owns 36 unpatented lode mining claims situated in Section 8, Township 13 North, Range 8 West, McKinley County, New Mexico, leases 31 unpatented claims in Section 11, and owns fee mineral rights covering Section 17, all of which are in Township 13 North, Range 8 West. Collectively, the Company’s mineral rights holdings in the Roca Honda project area are approximately 3,688 acres. Nose Rock Project The Nose Rock Project is located in west-central New Mexico, about 45 miles northeast of Gallup, New Mexico. The Nose Rock Project consists of mineral rights covering approximately 6,400 acres. The Company’s mineral rights are directly owned and are situated in sections 10, 11, 15, 17, 18, 19, 20, 29, 30, and 31, Township 19 North, Range 11 West, McKinley County, New Mexico. The surface estate over the Company’s deeded mineral rights is owned in fee by the Navajo Nation. There are no royalties or interests held by others relating to the Company’s mineral rights. West Largo Project The West Largo Project lands are comprised of 75 unpatented lode mining claims that were staked in Sections 20 and 28, and four sections of fee mineral rights in Sections 17, 19, 21 and 29, all situated in Township 15 North, Range 10 West. Collectively, the properties cover an area of approximately 3,840 acres. The Company has a 100% interest in these properties. The surface estates for Sections 17 and 21 are Navajo allotments. The surface over the unpatented lode mining claims in Sections 20 and 28 is public domain managed by the BLM. The surface for Section 19 is held in trust for the Navajo Nation, and the surface of Section 29 is owned by the Elkins Ranch. We do not hold any surface access rights or agreements for Sections 17, 19 or 21. There are no work or royalty obligations for the unpatented lode mining claims, which we own. The unpatented claims are subject to annual maintenance payments of $155 per claim to the BLM in order to maintain the mineral rights in good standing. A production royalty of 2.5 percent of “ore value” is payable to the Elkins Ranch for any production from Section 29.

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2921-110230 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13-14) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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