T
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QUARTERLY REPORT UNDER SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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£
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TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Washington
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001-01428
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68-0612191
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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1611 N. Molter Road, Ste. 201
Liberty Lake, Washington
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99019
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(Address
of principal executive offices)
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(Zip
Code)
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Large
accelerated filer £
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Accelerated
filer £
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Non-accelerated
filer £ (Do not
check if a smaller reporting company
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Smaller
reporting Company T
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HuntMountain
Resources Ltd. and Subsidiaries
(A
Development Stage Enterprise)
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||||||||
Consolidated Balance Sheet
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September 30, 2007 (Unaudited)
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|||||||
Assets
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||||||||
CURRENT
ASSETS:
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||||||||
Cash
and Cash Equivalents
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$ | 137,691 | ||||||
Accrued
Interest
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3,990 | |||||||
Prepaid
Expenses-Other
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2,807 | |||||||
Total
Current Assets
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$ | 144,488 | ||||||
EQUIPMENT:
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||||||||
Office
Equipment
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11,216 | |||||||
Less
Accumulated Depreciation
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6,079 | |||||||
Total
Office Equipment
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5,137 | |||||||
OTHER
ASSETS:
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||||||||
Investments
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7,331 | |||||||
Performance
Bond
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212,428 | |||||||
Property
Deposits
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67,000 | |||||||
Property
Purchase Option
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70,000 | |||||||
Total
Other Assets
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356,759 | |||||||
TOTAL
ASSETS
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$ | 506,384 | ||||||
Liabilities
and Stockholders’ Equity (Deficit)
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||||||||
CURRENT
LIABILITIES:
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||||||||
Trade
Accounts Payable
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$ | 54,384 | ||||||
Accrued
Wages and Related Taxes
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49,891 | |||||||
Short-term
Note Payable - Related Party, net of debt discount
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828,558 | |||||||
Accrued
Interest Payable - Related Party
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84,926 | |||||||
Total
Current Liabilities
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1,017,759 | |||||||
STOCKHOLDERS’
EQUITY (DEFICIT):
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||||||||
Common
Stock – 300,000,000 Shares, $0.001 Par Value, Authorized; 32,266,285
Shares Issued and Outstanding
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$ | 32,266 | ||||||
Preferred
Stock – 10,000,000 Shares, $0.001 Par Value, Authorized;-0- Shares Issued
and Outstanding
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- | |||||||
Additional
Paid-In Capital
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4,820,502 | |||||||
Retained
Earnings
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90,527 | |||||||
Deficit
Accumulated During the Development Stage
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(5,409,713 | ) | ||||||
Accumulated
Other Comprehensive Loss
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(44,957 | ) | ||||||
Total
Stockholders’ Equity (Deficit)
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(511,375 | ) | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 506,384 | ||||||
See accompanying notes to consolidated financial
statements.
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Three
Months Ended
September 30,
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Nine
Months Ended
September
30,
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From
Inception
of
Development Stage
July 1, 2005 through
September 30,
2007
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||||||||||||||||||
2007
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2006
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2007
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2006
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|||||||||||||||||
(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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|||||||||||||||||
INCOME:
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||||||||||||||||||||
Dividend
and Interest Income
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$ | 4,124 | $ | 12,753 | $ | 4,922 | $ | 31,912 | $ | 70,157 | ||||||||||
EXPENSES:
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||||||||||||||||||||
Professional
Fees
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55,198 | 24,927 | 135,011 | 68,750 | 232,276 | |||||||||||||||
Marketing
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26,581 | 15,289 | 56,731 | 56,517 | 163,697 | |||||||||||||||
Exploration
Expenses
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362,651 | 257,792 | 1,026,295 | 437,760 | 2,141,758 | |||||||||||||||
Travel
Expenses
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16,692 | 29,869 | 68,817 | 69,758 | 164,360 | |||||||||||||||
Administrative
and Office Expenses
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29,503 | 17,914 | 67,470 | 63,471 | 226,364 | |||||||||||||||
Payroll
Expenses
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146,274 | 64,677 | 403,874 | 196,643 | 802,910 | |||||||||||||||
Stock
Option Compensation Expense
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12,600 | 21,500 | 12,600 | 21,500 | 83,600 | |||||||||||||||
Stock
Options Issued for Services
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122,500 | 21,800 | 131,500 | 160,550 | 353,250 | |||||||||||||||
Interest
Expense
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42,568 | - | 84,928 | - | 84,927 | |||||||||||||||
Depreciation
Expense
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935 | 935 | 2,804 | 1,637 | 6,080 | |||||||||||||||
Financing
charge
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- | - | 39,176 | - | 39,176 | |||||||||||||||
Amortization
of debt discount
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418,002 | - | 1,184,215 | - | 1,184,215 | |||||||||||||||
Total
Expenses
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1,233,504 | 454,703 | 3,213,421 | 1,076,586 | 5,482,613 | |||||||||||||||
LOSS
BEFORE OTHER INCOME
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(1,229,380 | ) | (441,950 | ) | (3,208,499 | ) | (1,044,674 | ) | (5,412,456 | ) | ||||||||||
OTHER
INCOME:
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||||||||||||||||||||
Income
from Partnership Interest
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320 | 634 | 320 | 1,251 | 2,743 | |||||||||||||||
NET
LOSS
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$ | (1,229,060 | ) | $ | (441,316 | ) | $ | (3,208,179 | ) | $ | (1,043,423 | ) | $ | (5,409,713 | ) | |||||
BASIC
LOSS PER SHARE, Based on Weighted-Average Shares
Outstanding
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$ | (0.04 | ) | $ | (0.01 | ) | $ | (0.10 | ) | $ | (0.04 | ) | ||||||||
WEIGHTED-AVERAGE
COMMON SHARES OUTSTANDING
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32,266,285 | 31,945,436 | 32,266,285 | 25,551,945 |
Nine
Months Ended
September 30,
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From
Inception
of
Development Stage
July 1,
2005 through
September. 30, 2007
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|||||||||||
2007
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2006
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|||||||||||
(Unaudited)
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(Unaudited)
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|||||||||||
Increase
(Decrease) in Cash and Cash Equivalents
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||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
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||||||||||||
Net
Loss
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$ | (3,208,179 | ) | $ | (1,043,423 | ) | $ | (5,409,713 | ) | |||
Adjustments
to Reconcile Net Loss to Net Cash Used in Operating
Activities
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||||||||||||
Depreciation
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2,804 | 1,637 | 6,078 | |||||||||
Stock
Option Compensation Expense
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12,600 | 21,500 | 83,600 | |||||||||
Common
Stock Options Issued for Services
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131,500 | 160,550 | 353,250 | |||||||||
Gain
on sale of precious metal investments
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- | - | (15,194 | ) | ||||||||
Increase
in Accrued Interest
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(3,990 | ) | - | (3,990 | ) | |||||||
(Increase)
Decrease in Prepaid Assets
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15,818 | 10,748 | (2,807 | ) | ||||||||
Increase
in Accrued Liabilities
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128,169 | 91,264 | 176,201 | |||||||||
Financing
charge
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39,176 | - | 39,176 | |||||||||
Amortization
of debt discount
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1,184,215 | - | 1,184,215 | |||||||||
Net
Cash Used in Operating Activities
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(1,697,887 | ) | (757,724 | ) | (3,589,184 | ) | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
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||||||||||||
Sale
of Precious Metal Investments
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- | - | 28,913 | |||||||||
Purchase
of Performance Bond
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(251,613 | ) | - | (251,613 | ) | |||||||
Payment
of Property Deposit
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(67,000 | ) | - | (67,000 | ) | |||||||
Property
Purchase Option & Acquisition of Equipment
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- | (77,000 | ) | (81,216 | ) | |||||||
Net
Cash Used in Investing Activities
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(318,613 | ) | (77,000 | ) | (370,916 | ) | ||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
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||||||||||||
Proceeds
from Sales of Common Stock
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- | 1,003,870 | 1,132,870 | |||||||||
Proceeds
from Note Payable - Related Party
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1,857,000 | - | 1,857,000 | |||||||||
Net
Cash Provided by Financing Activities
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1,857,000 | 1,003,870 | 2,989,870 | |||||||||
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
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(159,500 | ) | 169,146 | (970,230 | ) | |||||||
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
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297,191 | 901,162 | 1,107,921 | |||||||||
CASH AND CASH
EQUIVALENTS, END OF PERIOD
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$ | 137,691 | $ | 1,070,308 | $ | 137,691 | ||||||
See accompanying notes to consolidated financial
statements.
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Number of
Options
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Weighted
Average Exercise
Price
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Weighted Average
Remaining
Contractual Life
(Years)
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Number of
Exercisable
Options at
September 30, 2007
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|||||||||||||
90,000 | $ | 0.20 | 4.39 | 90,000 | ||||||||||||
700,000 | $ | 0.25 | 3.76 | 600,000 | ||||||||||||
100,000 | $ | 0.30 | 4.09 | 100,000 | ||||||||||||
10,000 | $ | 0.34 | 2.84 | 10,000 | ||||||||||||
10,000 | $ | 0.37 | 2.52 | 10,000 | ||||||||||||
220,000 | $ | 0.38 | 4.98 | 160,000 | ||||||||||||
150,000 | $ | 0.40 | 4.96 | 50,000 | ||||||||||||
650,000 | $ | 0.45 | 4.71 | 550,000 | ||||||||||||
5,000 | $ | 0.55 | 3.76 | 5,000 | ||||||||||||
55,000 | $ | 0.60 | 4.93 | 5,000 | ||||||||||||
200,000 | $ | 0.63 | 4.32 | 150,000 | ||||||||||||
TOTALS
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2,190,000 | $ | 0.378 | 4.36 | 1,730,000 |
As Originally
Reported
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As Restated
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Impact of the
error Increase
(Decrease)
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||||||||||
Income
Statement for the three month period ended September 30,
2007
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||||||||||||
Financing
Charge
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$ | - | $ | - | $ | - | ||||||
Amortization
of debt discount
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- | 418,002 | 418,002 | |||||||||
Net
loss
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(811,058 | ) | (1,229,060 | ) | (418,002 | ) | ||||||
Basic
and fully diluted loss per share
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$ | (0.03 | ) | $ | (0.04 | ) | $ | (0.03 | ) | |||
Income
Statement for the nine month period ended September 30,
2007
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||||||||||||
Financing
Charge
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$ | - | $ | 39,176 | $ | 39,176 | ||||||
Amortization
of debt discount
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- | 1,184,215 | 1,184,215 | |||||||||
Net
loss
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(1,984,788 | ) | (3,208,179 | ) | (1,223,391 | ) | ||||||
Basic
and fully diluted loss per share
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$ | (0.06 | ) | $ | (0.10 | ) | $ | (0.04 | ) | |||
Balance
Sheet at September 30, 2007
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||||||||||||
Short-term
Note Payable - Related Party, net of debt discount
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$ | 1,857,000 | $ | 828,558 | $ | (1,028,442 | ) | |||||
Total
current liabilities
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2,046,201 | 1,017,759 | (1,028,442 | ) | ||||||||
Additional
paid-in capital
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2,568,669 | 4,820,502 | 2,251,833 | |||||||||
Deficit
Accumulated During the Development Stage
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(4,186,322 | ) | (5,409,713 | ) | (1,223,391 | ) | ||||||
Total
Stockholders’ Equity (Deficit)
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(1,539,817 | ) | (511,375 | ) | 1,028,442 |
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·
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Worldwide
economic and political events affecting the supply of and demand for gold,
silver, copper, and other base and precious
metals
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·
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Volatility
in the market price for gold, silver, copper, and other base and precious
metals
|
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·
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Financial
market conditions and the availability of financing on terms acceptable to
the Company
|
|
·
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Uncertainties
associated with the development of exploration properties in certain
geographical locations
|
|
·
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Geological,
technical, permitting, mining, and processing
problems
|
|
·
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The
availability, terms, conditions, and timing of require governmental
permits and approvals
|
|
·
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Uncertainty
regarding future changes in applicable law or implementation of existing
law
|
|
·
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The
availability of experienced employees and the retention of key
employees
|
|
·
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The
factors discussed under “Risk Factors” in our Form 10KSB for the period
ending December 31, 2006
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ITEM
1.
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LEGAL
PROCEEDINGS
|
ITEM
1A.
|
RISK
FACTORS
|
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
|
ITEM
3.
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DEFAULTS
UPON SENIOR SECURITIES
|
ITEM
4.
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SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
ITEM
5.
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OTHER
INFORMATION
|
ITEM
6.
|
EXHIBITS
|