UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington D.C. 20549 |
FORM 10-Q |
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2010 |
or |
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from __________to __________ |
Commission file number: 000-28837 |
NEW JERSEY MINING COMPANY |
(Exact name of registrant as specified in its charter) |
Idaho | 82-0490295 |
(State or other jurisdiction | (I.R.S. employer identification No.) |
of incorporation or organization) |
89 Appleberg Road, Kellogg, Idaho 83837 |
(Address of principal executive offices) (zip code) |
(208) 783-3331 |
Registrants telephone number, including area code |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(D) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period as the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days.
Yes [X] No [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [ ] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of large accelerated filer, accelerated filer and small reporting company in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer | _____. | Accelerated Filer | _____. |
Non-Accelerated Filer | _____. | Smaller reporting company | __X__. |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)
Yes [ ] No [ X ]
On August 3, 2010, 42,438,362 shares of the registrants common stock were outstanding.
1
NEW JERSEY MINING COMPANY
QUARTERLY REPORT ON FORM
10-Q
FOR THE QUARTERLY PERIOD
ENDED JUNE 30, 2010
TABLE OF CONTENTS
2
New Jersey Mining Company
(A Development Stage
Company)
Balance Sheets (Unaudited)
June 30,
2010 and December 31, 2009
ASSETS | ||||||
June 30, 2010 | December 31, 2009 | |||||
Current assets: | ||||||
Cash and cash equivalents | $ | 91,182 | $ | 34,087 | ||
Investment in marketable equity security at market (cost-$3,868) | 9,672 | 21,665 | ||||
Interest receivable | 92 | 309 | ||||
Miscellaneous receivable | 919 | |||||
Contract drilling receivable | 12,085 | |||||
Prepaid claim fees | 4,643 | 18,573 | ||||
Inventory | 22,760 | 1,833 | ||||
Total current assets | 140,434 | 77,386 | ||||
Property, plant, and equipment, net of accumulated depreciation | 1,349,615 | 1,353,369 | ||||
Mineral properties, net of accumulated amortization | 1,403,434 | 1,407,959 | ||||
Reclamation bonds | 121,133 | 121,088 | ||||
Total assets | $ | 3,014,616 | $ | 2,959,802 | ||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 52,878 | $ | 62,858 | ||
Note and interest payable, related party | 81,299 | 72,107 | ||||
Accrued payroll and related payroll expenses | 36,996 | 7,160 | ||||
Deposit received on sale of mineral property | 50,000 | |||||
Obligations under capital lease, current | 13,036 | 9,894 | ||||
Notes payable, current | 73,632 | 134,689 | ||||
Total current liabilities | 257,841 | 336,708 | ||||
Asset retirement obligation | 27,649 | 25,913 | ||||
Obligations under capital lease, non-current | 7,898 | 10,398 | ||||
Notes payable, non-current | 82,598 | 56,650 | ||||
Total non-current liabilities | 118,145 | 92,961 | ||||
Total liabilities | 375,986 | 429,669 | ||||
Stockholders equity: | ||||||
Preferred stock, no par value, 1,000,000 shares authorized; | ||||||
no shares issued and outstanding | ||||||
Common stock, no par value, 50,000,000 shares authorized; | 9,850,164 | 9,285,383 | ||||
June 30, 2010-42,412,887 and December 31, 2009-38,685,232 shares issued and outstanding | ||||||
Deficit accumulated during the development stage | (7,217,337 | ) | (6,773,046 | ) | ||
Accumulated other comprehensive income | ||||||
Unrealized gain in marketable equity security | 5,803 | 17,796 | ||||
Total stockholders equity | 2,638,630 | 2,530,133 | ||||
Total liabilities and stockholders equity | $ | 3,014,616 | $ | 2,959,802 |
3
The accompanying notes are an integral part of these financial statements.
New Jersey Mining Company
(A Development Stage
Company)
Statements of Operations and Comprehensive Loss
(Unaudited)
For the Three and Six Month Periods Ended June 30, 2010 and
2009,
And from Inception (July 18, 1996) through June 30, 2010
From Inception | |||||||||||||||
(July 18, 1996) | |||||||||||||||
Through | |||||||||||||||
June 30, 2010 | June 30, 2009 | June 30, 2010 | |||||||||||||
Three Months | Six Months | Three Months | Six Months | ||||||||||||
Income earned during the development stage: | |||||||||||||||
Sales of gold | $ | 6,067 | $ | 6,067 | $ | 52,338 | $ | 163,659 | $ | 431,779 | |||||
Sales of concentrate | 601,168 | ||||||||||||||
Drilling and exploration contract income | 12,085 | 12,085 | 66,472 | 66,472 | 210,696 | ||||||||||
18,152 | 18,152 | 118,810 | 230,131 | 1,243,643 | |||||||||||
Costs and expenses: | |||||||||||||||
Direct production costs | 22,443 | 40,920 | 45,268 | 172,272 | 1,308,121 | ||||||||||
Drilling and exploration contract expense | 15,489 | 20,609 | 28,161 | 28,161 | 109,295 | ||||||||||
Management | 60,158 | 127,026 | 90,787 | 187,070 | 1,823,057 | ||||||||||
Exploration | 82,369 | 113,628 | 33,221 | 49,545 | 2,363,635 | ||||||||||
Gain on sale of mineral property | (90,000 | ) | |||||||||||||
Gain on default of mineral property sale | (50,000 | ) | (320,000 | ) | |||||||||||
Depreciation and amortization | 20,249 | 33,443 | 38,080 | 85,603 | 703,536 | ||||||||||
General and administrative expenses | 91,333 | 175,011 | 53,589 | 135,817 | 2,566,569 | ||||||||||
Total operating expenses | 292,041 | 460,637 | 289,106 | 658,468 | 8,464,213 | ||||||||||
Other (income) expense: | |||||||||||||||
Timber sales | (54,699 | ) | |||||||||||||
Timber expense | 14,554 | ||||||||||||||
Royalties and other income | (1,811 | ) | (1,811 | ) | (2 | ) | (2 | ) | (73,887 | ) | |||||
Royalties expense | 2,484 | 3,597 | 44,089 | ||||||||||||
Gain on sale of marketable equity security | (1,912 | ) | (1,912 | ) | (92,269 | ) | |||||||||
Interest income | (397 | ) | (611 | ) | (103 | ) | (437 | ) | (47,704 | ) | |||||
Interest expense | 1,225 | 4,227 | 5,289 | 11,015 | 85,732 | ||||||||||
Write-off of goodwill | 30,950 | ||||||||||||||
Write-off of investment | 90,000 | ||||||||||||||
Total other (income) expense | (983 | ) | 1,805 | 5,756 | 12,261 | (3,234 | ) | ||||||||
Net loss | 272,906 | 444,290 | 176,052 | 440,598 | 7,217,336 | ||||||||||
Other comprehensive (income) loss: | |||||||||||||||
Unrealized (gain) loss on marketable equity security | 11,606 | 11,993 | (10,821 | ) | (4,290 | ) | (5,803 | ) | |||||||
Comprehensive loss | $ | 284,512 | $ | 456,283 | $ | 165,231 | $ | 436,308 | $ | 7,211,533 | |||||
Net loss per common share basic | $ | Nil | $ | 0.01 | $ | Nil | $ | 0.01 | $ | 0.34 | |||||
Weighted average common | |||||||||||||||
Shares outstanding basic | 42,364,989 | 41,684,480 | 37,506,523 | 37,347,938 | 20,995,253 |
4
The accompanying notes are an integral part of these financial statements.
New Jersey Mining Company
(A Development Stage
Company)
Statements of Cash Flows (Unaudited)
For the Six
Month Periods Ended June 30, 2010 and 2009,
And from Inception (July 18,
1996) through June 30, 2010
From Inception | |||||||||
June 30, | (July 18, 1996) | ||||||||
through | |||||||||
2010 | 2009 | June 30, 2010 | |||||||
Cash flows from operating activities: | |||||||||
Net loss | $ | (444,290 | ) | $ | (440,598 | ) | $ | (7,217,336 | ) |
Adjustments to reconcile net loss to net cash | |||||||||
Used by operating activities: | |||||||||
Depreciation and amortization | 33,443 | 85,603 | 703,536 | ||||||
Loss on equipment | 400 | 11,672 | |||||||
Write-off of goodwill and investment | 120,950 | ||||||||
Gain on sale of mineral properties | (50,000 | ) | (410,000 | ) | |||||
Gain on sale of marketable equity securities | (1,912 | ) | (92,269 | ) | |||||
Accretion of asset retirement obligation | 1,736 | 3,179 | |||||||
Common stock issued for: | |||||||||
Management and directors fees | 145,698 | 1,109,335 | |||||||
Services and other | 1,675 | 12,285 | 224,083 | ||||||
Exploration | 7,500 | 95,521 | |||||||
Mineral property agreement | 15,000 | ||||||||
Change in: | |||||||||
Prepaid claim fees | 13,930 | (4,643 | ) | ||||||
Inventory | (20,927 | ) | (41,680 | ) | (22,760 | ) | |||
Miscellaneous receivable | 919 | 5,516 | |||||||
Interest receivable | 217 | 221 | (92 | ) | |||||
Contract drilling receivable | (12,085 | ) | (61,043 | ) | (12,085 | ) | |||
Other assets | (778 | ) | |||||||
Accounts payable | (9,981 | ) | 10,671 | 62,115 | |||||
Accrued payroll and related payroll expenses | 29,837 | (28,102 | ) | 36,996 | |||||
Accrued reclamation costs | (1,443 | ) | |||||||
Net cash used by operating activities | (455,126 | ) | (305,841 | ) | (5,379,019 | ) | |||
Cash flows from investing activities: | |||||||||
Purchases of property, plant, and equipment | (20,940 | ) | (4,392 | ) | (1,105,188 | ) | |||
Purchase of mineral property | (20,904 | ) | |||||||
Proceeds from sale of mineral property | 120,000 | ||||||||
Deposit received on sale of mineral property | 320,000 | ||||||||
Proceeds on sale of equipment | 1,000 | 1,000 | |||||||
Purchases of or increase in reclamation bonds | (45 | ) | (235 | ) | (121,133 | ) | |||
Purchase of marketable equity security | (7,500 | ) | |||||||
Proceeds from sales of marketable equity securities | 2,112 | 95,901 | |||||||
Cash of acquired companies | 38,269 | ||||||||
Deferral of development costs | (759,209 | ) | |||||||
Net cash used by investing activities | (19,985 | ) | (2,515 | ) | (1,438,764 | ) | |||
Cash flows from financing activities: | |||||||||
Exercise of stock purchase warrants | 33,936 | 2,571,536 | |||||||
Sales of common stock, net of issuance costs | 529,170 | 4,790,246 | |||||||
Principal payments on capital lease | (4,983 | ) | (18,005 | ) | (188,480 | ) | |||
Principal payments on notes payable | (35,109 | ) | (57,460 | ) | (345,636 | ) | |||
Note and interest payable, related party net | 9,192 | 64,025 | 81,299 | ||||||
Net cash provided (used) by financing activities | 532,206 | (11,440 | ) | 6,908,965 | |||||
Net change in cash and cash equivalents | 57,095 | (319,796 | ) | 91,182 | |||||
Cash and cash equivalents, beginning of period | 34,087 | 321,254 | 0 | ||||||
Cash and cash equivalents, end of period | $ | 91,182 | $ | 1,458 | $ | 91,182 | |||
Supplemental disclosure of cash flow information: | |||||||||
Interest paid in cash, net of amount capitalized | $ | 4,227 | $ | 10,190 | $ | 73,711 | |||
Non-cash investing and financing activities: | |||||||||
Common stock issued for: | |||||||||
Property, plant, and equipment | $ | 50,365 | |||||||
Mineral properties | $ | 333,300 | |||||||
Payment of accounts payable | $ | 12,205 | |||||||
Acquisitions of companies, excluding cash | $ | 743,653 | |||||||
Capital lease obligation incurred for equipment acquired | $ | 5,625 | $ | 184,213 | |||||
Notes payable for property and equipment acquired | $ | 482,634 |
5
The accompanying notes are an integral part of these
financial statements.
New Jersey Mining Company
Notes to Financial Statements
(Unaudited)
1. | Basis of Presentation: |
These unaudited interim financial statements have been prepared by the management of New Jersey Mining Company (the Company) in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of the Companys management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included.
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations. Operating results for the three and six periods ended June 30, 2010, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2010.
For further information refer to the financial statements and footnotes thereto in the Companys Annual Report on Form 10-K for the year ended December 31, 2009.
The Company presents its financial statements in accordance with accounting guidance for development stage entities, as management believes that while the Companys planned principal operations have commenced, the revenue generated from them is not sufficient to cover all corporate costs. Additional development of the Companys properties is necessary before a transition is made to reporting as a production stage company.
2. | Description of Business |
The Company was incorporated as an Idaho corporation on July 18, 1996. The Company's primary business is exploring for and developing gold, silver, and base metal mining resources in Idaho.
3. | Related Party Transactions |
In the first and second quarter of 2010, an unsecured line of credit with 0% interest was extended to the Company by President Fred Brackebusch and Vice President Grant Brackebusch for the amount of stock due for management services in the quarter. Stock payments are made to Fred Brackebusch and Grant Brackebusch quarterly based on an hourly rate for management services above a predetermined amount and also in some cases in lieu of base salary. These payments have been deferred for the last 2 quarters. As of June 30, 2010, this amounted to $79,799. In addition $1,500 in office rent for the second quarter of 2010 is payable to Mine Systems Design, a related party.
4. | Equity |
Warrants
In the second quarter of
2010, 199,625 warrants were exercised; each warrant was exchanged for one
unregistered share of the Companys stock, at $0.17 per share resulting in
proceeds of $33,936. No warrants were exercised in the first quarter of 2010.
Common Stock Issued for Cash, Goods, and
Services
During the three and six month periods ended June 30, 2010,
the Company issued 5,000 and 7,500 shares, respectively, of unregistered common
stock to individuals for goods and services at a fair value prices ranging from
$0.17 to $0.25 per share.
5. | Fair Value Measurement |
The table below sets forth our financial assets that were accounted for at fair value on at June 30, 2010 and December 31, 2009, and their respective hierarchy level. Hierarchy level is determined by segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).We had no other financial assets or liabilities accounted for at fair value at June 30, 2010 and December 31, 2009.
Balance at June 30, 2010 |
Balance at December 31, 2009 |
Hierarchy Level | |
Investments in marketable equity securities |
$ 9,672 | $21,665 | Level 1 |
6
6. | Mining Venture Agreements |
Newmont Venture Agreement
The Company entered into a venture agreement with Newmont North
America Exploration Limited ("Newmont") in March 2008, relating to exploration
of the Company's Toboggan Project. Newmont is conducting exploration in a 38
square mile area centered on the prospects that the Company has staked. To earn
a participating interest in the Venture, Newmont is required to contribute
$2,000,000 in exploration expenditures as follows: $300,000 on or before March
2009, an additional $700,000 by March 2010, and an additional $1,000,000 by
March 2011. Newmont has completed two field seasons of exploration work and is
currently conducting the third season in 2010. Newmont has made satisfactory
progress toward completing their required expenditures under the agreement. NJMC
has been providing drilling services on a per footage fee basis to Newmont for
this project.
Item 2: |
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
When we use the terms "New Jersey Mining Company," the "Company," "we," "us," or "our," we are referring to New Jersey Mining Company (the "Company") and its subsidiaries, unless the context otherwise requires.
Cautionary Statement about Forward-Looking Statements
This Quarterly Report on Form 10-Q includes certain statements
that may be deemed to be "forward-looking statements." All statements, other
than statements of historical facts, included in this Form 10-Q that address
activities, events or developments that our management expects, believes or
anticipates will or may occur in the future are forward-looking statements. Such
forward-looking statements include discussion of such matters as:
The amount and nature of future capital, development and exploration expenditures;
The timing of exploration activities; and
Business strategies and development of our business plan.
Forward-looking statements also typically include words such as "anticipate," "estimate," "expect," "potential," "could" or similar words suggesting future outcomes. These statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, including such factors as the volatility and level of metal prices, currency exchange rate fluctuations, uncertainties in cash flow, expected acquisition benefits, exploration mining and operating risks, competition, litigation, environmental matters, the potential impact of government regulations, and other matters related to the mining industry, many of which are beyond our control. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements.
The Company is under no duty to update any of these forward-looking statements after the date of this report. You should not place undue reliance on these forward-looking statements.
Plan of Operation
The Company is executing its strategy to conduct exploration
for gold, silver and base metal deposits in the greater Coeur dAlene Mining
District of northern Idaho while concurrently conducting mining and mineral
processing operations on ore reserves it has located on its exploration
properties. The financial strategy is to generate cash from these operations to
pay for corporate expenses and to provide additional funds for exploration, thus
reducing the need to raise funds through financing activities including sale of
common stock. The strategy includes finding and developing ore reserves in order
to increase production of gold, silver, and base metals. In addition, the sale
or joint venture of mineral properties is used as a source of funds and to
reduce exploration costs.
The Company has several properties at which most exploration is being conducted; the Toboggan Project, the Niagara, the Golden Chest, the Silver Strand, and the Coleman. The Toboggan Project is a group of prospects in the Murray, Idaho District that contain gold and silver telluride minerals. The Toboggan Project is being explored by Newmont North America Exploration Limited under a joint venture agreement. Newmont is conducting exploration in a 38 square mile area centered on the prospects that the Company has staked previously and on new claims staked by Newmont. Newmont has commenced drilling of certain targets in the second quarter of 2010. The Niagara copper-silver deposit, also located in the Murray, Idaho area, in the Revett formation was drilled in the 1970s, and the Company drilled five holes since which expanded the resource. The Company is searching for joint venture opportunities in order to acquire funding to develop the reserves at the Golden Chest mine. An exploration drill hole was completed at the Golden Chest in the second quarter and a thin, high grade vein was intercepted. Production of silver-gold ore commenced at the Silver Strand mine in May 2010, but late in the second quarter crews were reassigned to exploration at the Golden Chest. At the Coleman underground mine, during the first quarter, a raise on the vein was started to help determine whether reserves can be calculated on the deeper parts of the Coleman vein.
The Company commenced core drilling operations at the Toboggan Project for Newmont under a service agreement in June 2010.
Improvements to the New Jersey mineral processing plant were made in the first quarter and the plant was operated in the second quarter processing a batch of custom ore, Colemen ore, and Silver Strand ore. The plant was idled at the end of the second quarter due to metallurgical problems with the Silver Strand ore.
7
Changes in Financial Condition
The Company maintains an adequate cash balance by increasing or
decreasing its exploration expenditures as limited by availability of cash from
operations or from financing activities. The cash balance at the end of the
first quarter was $91,182, and Figure 1 shows the corresponding balances for
previous accounting periods.
The cash balance decreased during the second quarter due to lack of financing activities and limited revenue.
Results of Operations
Income Earned during the Development Stage (Revenue) for the
second quarter of 2010 was $18,152 as compared to $118,810 for the comparable
period of 2009. Revenue was lower in 2010 due to less production. Figure 2 shows
a net loss for the second quarter of 2010 of $272,906 compared to a loss of
$176,052 for the second quarter of 2009. The net loss for the second quarter of
2010 was greater than the second quarter of 2009 because of decreased revenue.
Gold production was 26 ounces in the first quarter of 2010 compared to 96 ounces in the comparable period of 2009. Gold production for the remainder of 2010 will depend on the success of an exploration crosscut at the Golden Chest mine.
At the Golden Chest mine, production depends upon the ability to complete development of reserves. If the Idaho vein ramp development can be completed there will be more than 200,000 tonnes available. There are no plans in 2010 to commence ramp development unless a joint venture partner or other means of financing can be arranged.
Ore production started at the Silver Strand mine in the second quarter of 2010 but was suspended due to low metallurgical recovery in the concentrate leach plant. While management expects that it can solve the metallurgical problems with Silver Strand ore, no production will be possible for the remainder of the operating season.
8
The amount of money to be spent on exploration at the Companys mines and prospects will depend upon the amount of gross profit generated by operations and the amount of money raised by financing activities. Management expects that minimal work will be done at the Companys mines for the remainder of 2010 and that the mineral processing plant will remain idle the remainder of the year.
The Company will continue to look for a joint venture partner at the Golden Chest mine and to pursue equity financing. The Company is drilling for Newmont at the Toboggan Project on a contract basis during the 2010 summer and fall season. Newmont currently pays for all exploration activities on the Toboggan Project. We expect to receive cash flow by providing drilling services to Newmont on our joint venture (see note 6. Mining Venture AgreementsNewmont Venture Agreement).
Changes in Direct Production Costs
Direct production costs decreased for the three and six month
periods ending June 30, 2010 compared to the comparable periods last year
because the mining and milling properties were shut down for the majority of the
first quarter and only resumed operations in March of 2010.
Changes in Management Costs
Management expenses decreased for the three and six month
periods ending June 30, 2010 compared to the comparable periods last year
because of limited activity in 2010. Management continues to receive a portion
of payment in stock.
Changes in Exploration Costs
Exploration expenses increased for the three and six month
periods ending June 30, 2010 compared to the comparable period last year.
Exploration projects were put on hold in 2009 while production occurred at the
Golden Chest property. In March of 2010 exploration activities were resumed at
the Coleman property.
Item 3: | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Not required for small reporting companies.
Item 4: | CONTROLS AND PROCEDURES |
Disclosure Controls and Procedures
The
Companys President and Chief Executive Officer who also serves as the Companys
principal financial officer, has evaluated the effectiveness of the Companys
disclosure controls and procedures pursuant to Rule 13a-15(e) and 15d-15(e)
under the Securities and Exchange Act of 1934 (the Exchange Act), as of the
end of the period covered by this report. Based on such evaluation, the
Companys President, Chief Executive Officer, and principal financial officer
has concluded that, as of the end of such period, the Companys disclosure
controls and procedures are effective in recording, processing, summarizing, and
reporting, on a timely basis, information required to be disclosed by the
Company in the reports that it files under the Exchange Act.
Changes in internal control over financial
reporting.
The President, Chief Executive Officer, and principal
financial officer conducted evaluations of the Companys internal controls over
financial reporting to determine whether any changes occurred during the quarter
ended June 30, 2010 that have materially affected, or are reasonably likely to
materially affect, the Companys internal control over financial reporting. No
material changes in internal control over financial reporting occurred in the
quarter ended June 30, 2010.
Item 4T.: | CONTROLS AND PROCEDURES |
Information regarding internal control over financial reporting has been set forth in Item 4.
Item 1. | LEGAL PROCEEDINGS |
None
Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
Neither the constituent instruments defining the rights of the Companys securities filers nor the rights evidenced by the Companys outstanding common stock have been modified, limited or qualified.
During the second quarter of 2010 the Company issued 199,625 shares of unregistered common stock for net proceeds of $33,936 to certain accredited and sophisticated individuals in exchange for warrants held by those individuals. In managements opinion, the sale of the restricted shares, as defined under Rule 144, was made in reliance on exemptions from registration provided by Section 4(2) and Rule 506 of Regulation D of the Securities Act of 1933, as amended and other applicable Federal and state securities laws.
9
During the second quarter of 2010 the Company issued 5,000 shares of unregistered common stock at an average price of $0.25 to other accredited and sophisticated individuals for goods and services. In managements opinion, the securities were issued pursuant to exemptions from registration under Section 4(2) of the Securities Act of 1933, as amended.
Item 3. | DEFAULTS UPON SENIOR SECURITIES |
The Company has no outstanding senior securities.
Item 4. | REMOVED AND RESERVED |
Item 5. | OTHER INFORMATION |
None
Item 6. | EXHIBITS |
Number | Description |
3.1 | Articles of Incorporation. Filed as an exhibit to the registrant's registration statement on Form 10-SB (Commission File No. 000-28837) and incorporated by reference herein. |
3.2 | Bylaws. Filed as an exhibit to the registrant's registration statement on Form 10-SB (Commission File No. 000-28837) and incorporated by reference herein. |
31.1 | Certification pursuant to Section 302 of the Sarbanes-Oxley act of 2002. |
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
10
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
NEW JERSEY MINING COMPANY | ||
By: | /s/ Fred W. Brackebusch | |
Fred W. Brackebusch, its | ||
President, Treasurer & Director | ||
Date August 13, 2010 | ||
By: | /s/ Grant A. Brackebusch | |
Grant A. Brackebusch, its | ||
Vice President & Director | ||
Date: August 13, 2010 |
11