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Royalty Income
12 Months Ended
Dec. 31, 2013
Royalty Income  
Royalty Income

19.                               Royalty Income

 

During 2004 the Company sold the mineral rights on a portion of its Platosa property in Mexico to Excellon Resources Inc. (“Excellon”) and retained a 5% net smelter return (“NSR”) royalty interest that decreases to a 2% NSR after the Company had received $4.0 million of royalty payments.  Excellon has been mining on the royalty section of the property and producing and selling silver, zinc and lead since 2006. During the fourth quarter of 2009 the Company sold its remaining interest in the Platosa property to Excellon for $2.0 million in cash and retained a 1% NSR royalty.  During the second quarter 2012 the Company sold its remaining 1% NSR royalty interest to Excellon for $2.4 million and recorded a $1.8 million gain on the sale which is reflected in Interest and other income on the accompanying Statements of Operations and Comprehensive Loss.  Prior to the sale of the NSR royalty interest, the Company earned NSR royalties from Excellon of $0.4 million during the year ended December 31, 2012.

 

The Company did not record any royalty income during the year ended December 31, 2013.