Okay, here's part of their last Quarterly report (since they are late with their annual report). If you wade through this, you will see the following interesting things.....
1) $15K a month to NanoMinerals Corp. (Charles Ager). Nice way to funnel money back to the company founder without actually having him be part of the company due to his checkered past (Delgratia, etc.). That's over $180K a year plus other expenses. 2) Total operating expenses of $5mil for nine months. Man, that is quite the impressive burn rate for an outfit that has yet to produce an ounce of gold! 3) $2 mil to their consultants in 9 months. Yup, that buys some loyalty, for sure. When that dries up, we'll finally hear some stories, is my guess. 4) $2 mil for admin fees (includes officers and directors) in 9 months. Good work if you can get it. A lot of mouths to feed.
Nine month period ended September 30, 2012 and 2011. Operating expenses decreased by 5.2% to $5,655,519 during the nine month period ended September 30, 2012 from $5,968,801 during the nine month period ended September 30, 2011. Operating expenses decreased primarily as a result of a $536,479 loss recognized on equipment disposal in 2011 partially offset by higher mineral exploration and evaluation expenses.
Mineral exploration and evaluation expenses increased to $2,056,634 during the nine month period ended September 30, 2012 from $1,949,572 during the nine month period ended September 30, 2011. Mineral exploration and evaluation expenses increased primarily as a result of performing substantial autoclave testing in the first quarter of 2012.
Mineral exploration and evaluation expenses - related party increased to $188,429 during the nine month period ended September 30, 2012 from $143,203 for the nine month period ended September 30, 2011. The increase is due to Nanominerals Corp. ("NMC") providing additional consulting to the Company related to the acquisition and installation of the batch autoclave and other research activities for the nine month period ended September 30, 2012. NMC is one of our principal stockholders and an affiliate of Carl S. Ager, our Vice President, Secretary, Treasurer and director. We utilize the services of NMC to provide technical assistance and financing related activities. In addition, NMC provides us with use of its laboratory, instrumentation, milling equipment and research facilities. We pay NMC an advance royalty payment of $15,000 per month and reimburse NMC for actual services provided and expenses incurred.
Administrative - Clarkdale site expenses decreased to $190,778 during the nine month period ended September 30, 2012 from $240,738 for the nine month period ended September 30, 2011. Administrative costs at the Clarkdale site decreased due to a significant change in our work program for the Clarkdale Slag Project from preproduction activities to autoclave testing conducted primarily by outside independent laboratories resulting in less on-site activity. In addition, a larger portion of the site manager's time was allocated to exploration and evaluation expense.
General and administrative expenses increased to $2,067,725 during the nine month period ended September 30, 2012 from $1,947,822 during the nine month period ended September 30, 2011. General and administrative expenses increased primarily due to restoring director fees and officer salaries to their contractual amounts and to increased stock based compensation related to the following events in the nine month period ended September 30, 2012: (1) modification of 200,000 stock options, (2) immediate vesting of 100,000 stock options upon the resignation of one of our directors and (3) increased vesting expense related to 615,000 stock options granted in the third quarter of 2011. Additionally, our SEC filing fees increased due to compliance with XBRL . .
