0001387308-13-000154.txt : 20130819 0001387308-13-000154.hdr.sgml : 20130819 20130819111502 ACCESSION NUMBER: 0001387308-13-000154 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20130630 FILED AS OF DATE: 20130819 DATE AS OF CHANGE: 20130819 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Mexus Gold US CENTRAL INDEX KEY: 0001355677 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 204092640 STATE OF INCORPORATION: NV FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-52413 FILM NUMBER: 131047380 BUSINESS ADDRESS: STREET 1: 1805 N. CARSON STREET STREET 2: SUITE 150 CITY: CARSON CITY STATE: NV ZIP: 89701 BUSINESS PHONE: (916) 776 2166 MAIL ADDRESS: STREET 1: 1805 N. CARSON STREET, #150 CITY: CARSON CITY STATE: NV ZIP: 89701 FORMER COMPANY: FORMER CONFORMED NAME: Action Fashions, Ltd. DATE OF NAME CHANGE: 20060309 10-Q 1 mexusgoldform10q.htm FORM 10-Q (6-30-13) mexusgoldform10q.htm
U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

 
 
[X]
 
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
     
   
For the quarterly period ended June 30, 2013
     
[  ]
 
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to _____________

MEXUS GOLD US

Nevada
 
000-52413
 
20-4092640
(State or other jurisdiction
 
(Commission File Number)
 
(IRS Employer
of Incorporation)
     
Identification Number)
   
1805 N. Carson Street, #150
   
   
Carson City, NV 89701
   
   
(Address of principal executive offices)
   
         
   
(916) 776 2166
   
   
(Issuer’s Telephone Number)
   

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  X  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 the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule12b-2 of the Exchange Act.

Large accelerated filer  [   ]
 
 
Accelerated filer    [    ]
Non-accelerated filer    [   ]
(Do not check if smaller reporting company)
 
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]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Exchange Act of 1934 after the distribution of securities under a plan confirmed by a court.

Yes
[   ]
No
[   ]

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date:  As of August 14, 2013, 219,866,654 shares of our common stock were issued and outstanding.

 
 
 

 

 
PART I
ITEM 1.FINANCIAL STATEMENTS
 
 
MEXUS GOLD US
(An Exploration Stage Company)
CONSOLIDATED BALANCE SHEETS
(Unaudited

 
     
June 30, 2013
March 31, 2013
ASSETS
       
CURRENT ASSETS
       
 
Cash
 
 $              84,546
 
 $            104,701
 
Prepaid and other assets
 
26,592
 
25,019
TOTAL CURRENT ASSETS
 
111,138
 
129,720
           
FIXED ASSETS
       
 
Equipment, net of accumulated depreciation
1,862,830
 
1,955,813
TOTAL FIXED ASSETS
 
1,862,830
 
1,955,813
           
OTHER ASSETS
       
 
Deferred finance expense
 
373,061
 
                           -
 
Equipment under construction
 
105,977
 
52,575
 
Property costs
 
1,233,483
 
1,233,483
TOTAL OTHER ASSETS
 
1,712,521
 
1,286,058
           
TOTAL ASSETS
 
 $        3,686,489
 
 $        3,371,591
           
LIABILITIES AND SHAREHOLDERS' EQUITY
       
CURRENT LIABILITIES
       
 
Accounts payable and accrued liabilities
 
 $            100,846
 
 $              68,750
 
Accounts payable - related party
 
19,633
 
12,863
 
Notes payable
 
173,394
 
192,500
 
Note payable - related party
 
248,421
 
218,992
 
Loan payable
 
               255,000
 
                           -
 
Secured convertible promissory note derivative liability
                 44,505
 
                           -
 
Warrant derivative liability
 
               210,178
 
                           -
 
Secured convertible promissory note (net of unamortized debt discount $293,452)
                 14,048
 
                           -
TOTAL CURRENT LIABILITIES
 
1,066,025
 
493,105
           
TOTAL LIABILITIES
 
1,066,025
 
493,105
           
SHAREHOLDERS' EQUITY
       
 
Capital stock
       
 
Authorized
       
 
9,000,000 shares of preferred stock, $0.001 par value per share, nil issued and outstanding
                           -
 
                           -
 
1,000,000 shares of Series A Convertible Preferred Stock, $0.001 par value per share
                           -
 
                           -
 
500,000,000 shares of common stock, $0.001 par value per share
                           -
 
                           -
 
Issued and outstanding
       
 
375,000 shares of Series A Convertible Preferred Stock (375,000 - March 31, 2012)
375
 
375
 
217,934,132 shares of common stock (212,468,077 - March 31, 2013)
217,934
 
212,468
 
Additional paid-in capital
 
12,129,380
 
11,266,771
 
Share subscription payable
 
433,269
 
417,369
 
Accumulated deficit
 
(648,441)
 
(648,441)
 
Accumulated deficit during the exploration stage
(8,933,332)
 
(7,893,186)
 
Total Mexus Gold Shareholders' Equity
 
3,199,185
 
3,355,356
 
Non-controlling interest
 
(578,721)
 
(476,870)
TOTAL SHAREHOLDERS' EQUITY
 
2,620,464
 
2,878,486
           
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 $        3,686,489
 
 $        3,371,591
           
The accompanying notes are an integral part of these consolidated financial  statements.

 
 

 

MEXUS GOLD US
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

       
For the Period from
       
Exploration Stage re-entry
   
Three Months Ended June 30,
(September 18, 2009) to
   
2013
2012
June 30, 2013
REVENUES
     
 
Revenues
 $                          406,387
 $                          105,583
 $                                1,826,040
Total revenues
406,387
105,583
1,826,040
         
Expenses
     
 
General and administrative
192,984
174,376
2,960,746
 
Bad debt expense - related party
247,509
                                         -
488,182
 
Exploration costs
886,825
143,576
4,997,638
 
Stock-based expense - consulting services
37,500
0
2,523,786
 
Impairment of mineral property
                                         -
                                         -
339,664
 
Loss on sale of equipment
                                         -
27,896
279,317
 
Gain on settlement of debt
                                         -
                                         -
(283,715)
Total operating expenses
1,364,818
345,848
11,305,618
         
OTHER INCOME (EXPENSE)
     
 
Interest expense
(161,774)
(5,717)
(277,350)
 
Foreign exchange loss
(17,109)
                                         -
                                       (17,109)
 
Loss on derivative liabilities
(4,683)
                                         -
                                         (4,683)
   
(183,566)
(5,717)
(299,142)
         
NET LOSS
(1,141,997)
(245,982)
(9,778,720)
         
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST
(101,851)
                                         -
(845,388)
         
NET LOSS ATTRIBUTABLE TO MEXUS GOLD US
 $                    (1,040,146)
 $                        (245,982)
 $                              (8,933,332)
         
BASIC LOSS PER COMMON SHARE
 $                               (0.00)
 $                               (0.00)
 
         
WEIGHTED AVERAGE NUMBER OFCOMMON SHARES
   
 OUTSTANDING- BASIC
213,659,127
181,016,800
 
         
The accompanying notes are an integral part of these consolidated financial  statements.

 
 

 
 
Mexus Gold US
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
     
For the Period from
     
Exploration Stage
 
Three Months Ended June 30,
re-entry (September 18,
 
2013
2012
2009) to June 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
     
Net loss
 $           (1,141,997)
 $          (245,982)
 $                         (9,778,720)
Adjustments to reconcile net loss
     
to net cash used in operating activities:
     
Depreciation and amortization
                       85,684
                  57,376
                                   707,566
Loss on sale of equipment
                                  -
                             -
                                   279,317
Loss on settlement of accounts payable
                                  -
                             -
                                     11,000
Gain on settlement of debt
                                  -
                             -
                                (283,715)
Stock-based compensation
                       37,500
                  27,896
                               2,495,316
Accrued interest expense
                     161,774
                             -
                                   223,405
Impairment of equipment included in exploration costs
                         7,500
 
                                       7,500
Impairment of mineral property
                                  -
                             -
                                   339,664
Bad debt expense - related party
                     247,509
                             -
                                   488,182
Loss on derivatives
                         4,683
                             -
                                       4,683
 Changes in operating assets and liabilities:
                                  -
                             -
                                                -
Prepaid and other assets
                       (1,573)
                    2,971
                                   (26,592)
Accounts payable and accrued liabilities
                       19,154
               (38,524)
                                   454,494
NET CASH USED IN OPERTATING ACTIVITIES
                  (579,766)
             (196,263)
                             (5,077,900)
CASH FLOWS FROM INVESTING ACTIVITIES
     
  Purchase of equipment
                       (1,200)
             (147,854)
                             (1,965,508)
  Purchase of equipment under construction
                     (45,903)
                  (2,779)
                                (467,511)
  Purchase of mineral properties
                                  -
               (60,000)
                                (448,730)
  Issuance of notes receivable
                  (247,509)
                             -
                                (488,182)
  Proceeds from sale of equipment
                                  -
                             -
                                   285,989
NET CASH USED IN INVESTING ACTIVITES
                  (294,612)
             (210,633)
                             (3,083,942)
CASH FLOWS FROM FINANCING ACTIVITIES
     
  Proceeds from issuance of notes payable
                     285,894
               121,200
                               1,246,659
  Payments on notes payable
                     (50,000)
               (95,173)
                                (356,616)
  Payments on loans payable
                                  -
                     (307)
                                     (1,343)
  Proceeds from issuance of convertible promissory notes
                     250,000
                             -
                                   250,000
  Advances from related party
                       42,350
                  10,488
                                   401,780
  Payment on advances from related party
                     (12,921)
               (12,718)
                                   (66,708)
  Advance from Powercom Services Inc.
                                  -
                             -
                                   800,000
  Proceeds from issuance of common stock
                     338,900
               395,302
                               5,924,518
  Share subscriptions payable
                                  -
                             -
                                     43,393
NET CASH PROVIDED BY FINANCING ACTIVITIES
                     854,223
               418,792
                               8,241,683
       
INECREASE (DECREASE) IN CASH
                     (20,155)
                  11,896
                                     79,841
CASH, BEGINNING OF PERIOD
                     104,701
                             -
                                       4,705
CASH, END OF PERIOD
 $                    84,546
 $              11,896
 $                                  84,546
       
Supplemental disclosure of cash flow information:
   
  Interest paid
 $                    15,000
 $                 2,116
 $                                  37,081
  Taxes paid
 $                             -
 $                        -
 $                                           -
       
Supplemental disclosure of non-cash investing and financing activities:
 
  Shares issued for notes payable
 $                             -
 $                        -
 $                               806,957
  Shares issued for advances - related party
 $                             -
 $                        -
 $                                    2,200
  Shares issued for accounts payable, including related party
 $                             -
 $                        -
 $                               590,250
  Deferred gain on equipment
 $                             -
 $                        -
 $                                  46,000
  Shares issued and unissued for equipment purchase
 $                      6,500
 $              30,554
 $                               481,799
  Shares issued for equipment under construction
 $                             -
 $                        -
 $                                    5,000
  Shares issued for mineral property
 $                             -
 $                        -
 $                               562,000
  Asset relinquished to settle debt
 $                             -
 $                        -
 $                               145,938
  Asset given as settlement of payable
 $                             -
 $                        -
 $                                    6,500
  Loan for equipment
 $                             -
 $                        -
 $                                  43,046
  Payables issued for mineral properties
 $                             -
 $              15,000
 $                               (15,000)
  Payables issued for equipment
 $                             -
 $                 6,393
 $                                           -
  Subscription payable settled by related party
 $                             -
 $              (5,745)
 $                                  (5,745)
       
The accompanying notes are an integral part of these consolidated financial statements.
 
 
 
 

 

MEXUS GOLD US
(AN EXPLORATION STAGE COMPANY)
Notes to Consolidated Financial Statements
June 30, 2013
(Unaudited)

1.  
ORGANIZATION AND BUSINESS OF COMPANY

Mexus Gold US (the “Company”) was originally incorporated under the laws of the State of Colorado on June 22, 1990, as U.S.A. Connection, Inc.  On October 28, 2005, the Company changed its’ name to Action Fashions, Ltd. On September 18, 2009, the Company changed its’ domicile to Nevada and changed its’ name to Mexus Gold US to better reflect the Company’s new planned principle business operations. The Company has a fiscal year end of March 31.

The Company re-entered the exploration stage as of September 18, 2009, as defined by the Financial Accounting Standard Board (FASB) in FASB ASC 915-10, “Development Stage Entities”. The Company is devoting substantially all of its present efforts to establish a new business and none of its planned principal operations have commenced. All losses accumulated since re-entry into the exploration stage has been considered part of the Company’s exploration stage activities.

The Company is a mining company engaged in the evaluation, acquisition, exploration and advancement of gold, silver and copper projects in the State of Sonora, Mexico and the Western United States, as well as, the salvage of precious metals from identifiable sources.

2.  
BASIS OF PREPARATION

Pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q, the consolidated financial statements, footnote disclosures and other information normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The consolidated financial statements contained in this report are unaudited but, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the consolidated financial statements.  All significant inter-company accounts and transactions have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. The consolidated balance sheet at March 31, 2013 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management reviews these estimates and assumptions on an ongoing basis using currently available information. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

Per Share Data

Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share". Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.
 
Fair Value of Financial Instruments
 
ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.
 
Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.

The Company's financial instruments consist of cash, accounts payable, accrued liabilities, advances, notes payable, and a loan payable. The carrying amount of these financial instruments approximate fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.
 
Our warrant derivative liability and secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs.
 
Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The notes payable, loans payable and secured convertible promissory notes have fixed interest rates therefore the Company is exposed to interest rate risk in that they could not benefit from a decrease in market interest rates. In seeking to minimize the risks from interest rate fluctuations, the Company manages exposure through its normal operating and financing activities.

Deferred Financing Costs

Deferred financing costs are amortized to interest expense based on the terms of the related debt instruments on a straight- line basis, which approximates the effective interest rate method.

Accounting for Derivative Instruments

Accounting standards require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value.  A change in the market value of the financial instrument is recognized as a gain or loss in results of operations in the period of change.

Stock-based Compensation

The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505.

Revenue Recognition

The Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured.
 
Exploration and Development Costs

Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values.

Mineral Property Rights
 
Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs would be based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, Impairment or Disposal of Long-Lived Assets.

Reclassification

The Company reclassified $18,052 of accounts payable, related party as of March 31, 2013 to accounts payable to conform to the current presentation.  The reclassification had no effect on the Company’s financial condition, results of operations, or cash flows.

3.
GOING CONCERN

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company has a limited operating history and limited funds and has an accumulated deficit of $648,441 and an accumulated deficit since re-entry into the exploration stage of $8,933,332 at June 30, 2013. These factors, among others, may indicate that the Company may not be able to continue as a going concern.

The Company is dependent upon outside financing to continue operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management’s plans to raise necessary funds through a private placement of its common stock to satisfy the capital requirements of the Company’s business plan. There is no assurance that the Company will be able to raise the necessary funds, or that if it is successful in raising the necessary funds, that the Company will successfully execute its business plan.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and/or liabilities that might be necessary should the Company be unable to continue as a going concern. The continuation as a going concern is dependent upon the ability of the Company to meet our obligations on a timely basis, and, ultimately to attain profitability.
 
4.  
RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY
 
 
There have been no recent accounting pronouncements or changes in accounting pronouncements that impacted the first quarter of fiscal 2014, or which are expected to impact future periods that were not already adopted and disclosed in prior periods.
 
5.  
NOTE RECEIVABLE AND RECOVERABLE DISBURSEMENT - RELATED PARTY

On October 29, 2012, the Company entered into a note agreement with Kenneth Azuka, owner and operator of Trinidad Pacifica in the amount of $140,000.  On February 28, 2013, an additional $10,000 advance was disbursed to Kenneth Azuka. The business purpose of the $140,000 note and advance of $10,000 was to pay payroll and social security tax arrears of Trinidad Pacifica that were incurred prior to November 1, 2012. This note is non-interest bearing and is due on July 29, 2013.

In addition, the Company paid $90,673 and $247,509 directly to suppliers for expenses incurred by Trinidad Pacifica from November 1, 2012 to March 31, 2013 and April 1, 2013 to June 30, 2013, respectively. The Company recorded these payments as a recoverable disbursement since these expenses were incurred by Trinidad Pacifica prior to November 1, 2012, the date of the Joint Venture Agreement.  The Company plans to recover these disbursements from the other Venturers as it was represented to the Company in the Joint Venture Agreement that there were no outstanding liabilities from activities of the Venturers prior to November 1, 2013 which the Company was responsible.

At June 30, 2013, the note, advance and recoverable disbursements were determined to be impaired since the Company believes the debtor does not have the financial capacity to repay these debts at June 30, 2013.  A bad debt expense of $240,673 and $247,509 was recorded in the consolidated statement of operations for the year ended March 31, 2013 (2012 -$0) and the three months ended June 30, 2013 (2012 - $0), respectively. The Company plans to recover these amounts from either Kenneth Azuka, the Joint Venture or from the other Venturers interest in the Joint Venture. The recovery, if any, will be recorded in the consolidated statement of operations in the period collectability is reasonably assured.

6.  
ACCOUNTS PAYABLE – RELATED PARTIES

During the three months ended June 30, 2013 and 2012, the Company incurred rent expense to Paul D. Thompson, the sole director and officer of the Company, of $11,400 and $11,400, respectively.  At June 30, 2013 and March 31, 2013, $19,633 and $12,863 for this obligation is outstanding, respectively.

7.  
NOTES PAYABLE

On January 8, 2013, the Company entered into an unsecured promissory note agreement with William H. Brinker in the amount of $185,000.  The note is due on demand upon the occurrence of certain events and at the discretion of the note holder. A finance charge of $5,000 is due on or before March 31, 2013. The note is secured by 5,000,000 shares of common stock of Mexus Gold US pledged by the Company and certain mining equipment include a radial stacker and cone crushing plant.  On April 1, 2013, the Company repaid $50,000 in principal and $140,000 remains outstanding at June 30, 2013 ($190,000 – March 31, 2013).

In June 2013, the Company received advances totalling 400,000 Mexican Pesos ($30,894 USD). These advances are non-interest bearing, unsecured and have no specific terms of repayment.

Defaulted Senior Notes

On February 16, 2010, the Company made an unsecured Promissory Note Agreement with William McCreary in the amount of $2,500 at eight percent interest and due on demand or no later than September 1, 2010. The Company has not made the scheduled payments and is in default on this note as of December 31, 2011. The default rate on the note is eight percent.  At June 30, 2013 and March 31, 2013, the balances on this note totalled $2,500 and $2,500, respectively.  At June 30, 2013 and March 31, 2013, accrued interest of $3,235 and $3,185 on this note have been included in accounts payable and accrued liabilities, respectively.

8.  
NOTES PAYABLE – RELATED PARTY

These notes are unsecured, non-interest bearing and due on demand.  These notes were accumulated through a series of cash advances to the Company and are due to Paul D. Thompson, the sole director and officer of the Company.  At June 30, 2013 and March 31, 2013, Notes payable – related party totalled $571 and $8,992, respectively.
Notes due to Taurus Gold, Inc. are unsecured, non-interest bearing and due on demand.  These notes were accumulated through a series of cash advances to the Company. Taurus Gold, Inc. is controlled by Paul D. Thompson, the sole director and officer of the Company.  As of June 30, 2013 and March 31, 2013, notes payable due to Taurus Gold Inc. totalled $247,850 and $210,000, respectively.

9.  
PROMISSORY NOTES

On April 18, 2013, the Company issued Promissory Notes for $255,000 in cash. The Notes bear interest of 4% per annum and are due on December 31, 2013. The Notes are secured by all of Mexus Gold US shares of stock in Mexus Resources S.A. de C.V. and a personal guarantee of Paul D. Thompson. In addition, a fee of 2,550,000 shares of common stock of the Company valued at $501,075 ($0.1965 per share) was paid to the Note holders on April 18, 2013.  These financing fees are capitalized in the consolidated balance sheet as deferred finance expense and are being amortized on a straight-line basis, which approximates the effective interest rate method, as interest expense over the life of the Promissory Notes.

10.  
SECURED CONVERTIBLE PROMISSORY NOTES

On June 12, 2013, the Company entered into a Securities Purchase Agreement with Typenex Co-Investment, LLC (“Typenex”), for the sale of an 8% Secured Convertible Promissory Notes (“Notes”) in the principal amount of $557,500 consisting of an initial tranche of $307,500 comprising of $250,000 of cash at closing, Typenex legal expenses in the amount of $7,500 and a $50,000 original issue discount and an additional tranche $250,000 in cash. On June 12, 2013 the Company closed on the initial tranche and on June 30, 2013, the Company has not closed on the additional tranche. The Company has no obligation to pay Typenex any amounts on the unfunded portion of the Note. The Notes have a maturity date that is thirteen months after the issuance date. Typenex has been granted a security interest in the property of the Company.

At the option of the holder, all principal, costs, charges and interest amounts outstanding under all of the Notes shall be exchanged for shares of the Company’s common stock at the Conversion Price of $0.23 per share. The Conversion Price is subject to an anti-dilution adjustment in the event the Company at any time, while the Notes are outstanding, issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.23 a share.

In conjunction with the issuance of the Notes on June 12, 2013, the Company issued a variable number of warrants of the Company’s common stock equal to $278,750 divided by the Market Price.  Market Price is defined as the higher of (i) the closing price of the common stock of the Company on June 12, 2013, and (ii) the VWAP of the common stock for the trading day that is two days prior to the exercise date.  The Exercise Price of the warrants are $0.24 per share. The Exercise Price is subject to an anti-dilution adjustment in the event the Company at any time, while the Warrants are outstanding, issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.24 a share.

The anti-dilution protection for the Note and Warrants excludes (a) the Company’s issuance of securities in connection with strategic license agreements and other partnering arrangements so long as any such issuances are not for the purpose of raising capital and in which holders of such securities or debt are not at any time granted registration rights, and (b) the Company’s issuance of Common Stock or the issuance or grant of options to purchase Common Stock to employees, directors, officers and consultants, authorized by the Company’s board of directors in place on June 12, 2013.

After six months after the issuance date, monthly installments are due on the Note payable at the option of the Company (i) in cash (ii) in shares of common stock of the Company discounted depending on the Company’s share price at either 30% or 35%, or (iii) in any combination of cash or shares.

On June 12, 2013, the Company recorded a discount on the Note equal to the fair value of the warrant derivative liability and convertible promissory note derivative liability. This discount is amortized using the effective interest rate method over the term of the Note.
 
 
Three months ended June 30,
 
2013
2012
Cash advanced on closing of the initial tranche
$      250,000
$               -
Discounts on Note
   
  Fair value of warrant derivative liability
(219,372)
-
  Fair value of convertible promissory note liability
(45,362)
-
  Loss on derivative liabilities
14,734
-
  Amortization of discount on Note
          14,048
                  -
 
$         14,048
$               -

11.  
WARRANT DERIVATIVE LIABILITY

The Warrants are subject to anti-dilution adjustments that allow for the reduction in the Exercise Price in the event the Company subsequently issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.24 a share. The Company accounted for the warrants in accordance with ASC Topic 815. Accordingly, the Warrants are not considered to be solely indexed to the Company’s own stock and, as such, recorded as a liability.
 
The Company’s warrant derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Exercise Price contains an anti-dilution adjustment, the probability that the Exercise Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.

The inputs into the binomial model are as follows:

 
June 12, 2013
June 30, 2013
Closing share price
$0.105
$0.100
Conversion price
$0.24
$0.24
Risk free rate
1.15%
1.41%
Expected volatility
150%
150%
Dividend yield
0%
0%
Expected life
60 months
59 months

The fair value of the conversion option derivative liability is $219,372 and $210,178 at June 12, 2013 and June 30, 2013, respectively. The decrease in the fair value of the conversion option derivative liability of $9,195 is recorded as a gain in the unaudited consolidated condensed statement of operations for the three months ended June 30, 2013.

12.  
CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY

The Notes are subject to anti-dilution adjustments that allow for the reduction in the Conversion Price in the event the Company subsequently issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.23 a share. The Company accounted for the conversion option in accordance with ASC Topic 815. Accordingly, the Conversion Option is not considered to be solely indexed to the Company’s own stock and, as such, recorded as a liability.
 
The Company’s convertible promissory note derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Conversion Price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.
The inputs into the binomial model are as follows:

 
June 12, 2013
June 30, 2013
Closing share price
$0.105
$0.100
Conversion price
$0.23
$0.23
Risk free rate
0.14%
0.15%
Expected volatility
114%
114%
Dividend yield
0%
0%
Expected life
13 months
12 months

The fair value of the conversion option derivative liability is $44,505 and $45,362 at June 30, 2013 and June 12, 2013, respectively. The decrease in the fair value of the conversion option derivative liability of $857 is recorded as a gain in the unaudited consolidated condensed statement of operations for the three months ended June 30, 2013.

13.  
STOCKHOLDERS’ EQUITY

The stockholders’ equity of the Company comprises the following classes of capital stock as of June 30, 2013 and March 31, 2013:

Preferred Stock, $.001 par value per share; 9,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2013 and March 31, 2013, respectively.
 
Series A Convertible Preferred Stock (‘Series A Preferred Stock”), $.001 par value share; 1,000,000 shares authorized: 375,000 shares issued and outstanding at June 30, 2013 and March 31, 2013.
 
On August 22, 2011, the Board of Directors designated 1,000,000 shares of its Preferred Stock, $0.001 par value as Series A Preferred Stock.  Holders of Series A Preferred Stock may convert one share of Series A Preferred Stock into one share of Common Stock.  Holders of Series A Preferred Stock have the number of votes determined by multiplying (a) the number of Series A Preferred Stock held by such holder, (b) the number of issued and outstanding Series A Preferred Stock and Common Stock on a fully diluted basis, and (c) 0.000006.
 
Common Stock, par value of $0.001 per share; 500,000,000 shares authorized: 217,934,132 and 212,468,077 shares issued and outstanding at June 30, 2013 and March 31, 2013, respectively. Holders of Common Stock have one vote per share of Common Stock held.

On May 3, 2013, the Company issued 880,714 shares of common stock to satisfy obligations under share subscription agreements for $137,250 in cash included in share subscriptions payable.

On May 21, 2013, the Company issued 823,332 shares of common stock to satisfy obligations under share subscription agreements for $125,250 in cash included in share subscriptions payable.

On May 22, 2013, the Company issued 2,550,000 shares of common stock to satisfy obligations under share subscription agreements for $501,075 in financing fees included in share subscriptions payable.

On June 17, 2013, the Company issued 387,500 shares of common stock to satisfy obligations under share subscription agreements for $27,000 in cash included in share subscriptions payable.

On June 26, 2013, the Company issued 824,509 shares of common stock to satisfy obligations under share subscription agreements for $43,000 in cash and $34,500 in services included in share subscriptions payable.

Common Stock Payable

During the three months ended June 30, 2013, the Company received $338,900 in cash in exchange for subscriptions payable of 3,240,174 shares of common stock ($0.105 per share).

During the three months ended June 30, 2013, the Company issued subscriptions payable for 325,000 shares of common stock for services valued at $37,500 ($0.115 per share).
 
14.  
SUBSEQUENT EVENTS

On July 16, 2013, the Company issued 66,666 shares of common stock to satisfy obligations under share subscription agreements for $6,000 in cash included in share subscriptions payable.

On July 17, 2013, the Company issued 125,000 shares of common stock to satisfy obligations under share subscription agreements for $10,000 in cash included in share subscriptions payable.

On July 22, 2013, the Company issued 576,571 shares of common stock to satisfy obligations under share subscription agreements for $2,400 in cash and $3,000 in services, included in share subscriptions payable, and $30,000 in cash and $11,000 in services for subscriptions agreements entered into in July 2013.

On July 31, 2013, the Company issued 1,014,285 shares of common for $71,000 in cash and 150,000 shares of common stock for annual mineral lease payment valued at $15,150 ($0.101 per share).

 
 
 

 

ITEM 2.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement Concerning Forward-Looking Statements

The following discussion and analysis should be read in conjunction with our audited consolidated financial statements and related notes included in this report.  This report contains “forward-looking statements.” The statements contained in this report that are not historic in nature, particularly those that utilize terminology such as “may,” “will,” “should,” “expects,” “anticipates,” “estimates,” “believes,” or “plans” or comparable terminology are forward-looking statements based on current expectations and assumptions.

Various risks and uncertainties could cause actual results to differ materially from those expressed in forward-looking statements.  Factors that could cause actual results to differ from expectations include, but are not limited to, those set forth under the section “Risk Factors” set forth in this report.

The forward-looking events discussed in this report, the documents to which we refer you and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us.  For these statements, we claim the protection of the “bespeaks caution” doctrine.  All forward-looking statements in this document are based on information currently available to us as of the date of this report, and we assume no obligation to update any forward-looking statements.  Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results to differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements.

The Company

Mexus Gold US is an exploration stage mining company engaged in the evaluation, acquisition, exploration and advancement of gold, silver and copper projects in the State of Sonora, Mexico and the Western United States. Mexus Gold US is dedicated to protect the environment, provide employment and education opportunities for the communities that it operates in.

Our President and CEO, Paul Thompson, brings over 40 years’ experience in mining and mining development to Mexus Gold US. Mr. Thompson is currently recruiting additional management personnel for its Mexico, Nevada, and submarine Cable Recovery operations to assist in growing the company.

Our executive offices are located at, 1805 N. Carson Street, #150, Carson City, Nevada 89701. Our telephone number is (916) 776 -2166.

We were originally incorporated under the laws of the State of Colorado on June 22, 1990, as U.S.A. Connection, Inc. On October 28, 2009, we changed our domicile to Nevada and changed our name to Mexus Gold US to better reflect our new business operations. Our fiscal year end is March 31st.

Description of the Business of Mexus Gold US

Mexus Gold US is engaged in the evaluation, acquisition, exploration and advancement of gold exploration and development projects in the state of Nevada and Mexico, as well as, the salvage of precious metals from identifiable sources. Our main activities in the near future will focus on our mining operations in Mexico.

Our mining opportunities located in the state of Nevada and the state of Sonora, Mexico will provide us with projects to recover gold, silver, copper and other precious metals. The cable salvage opportunity involves principally the recovery of copper and lead from abandoned cable previously utilized for communications purposes. Each of these opportunities are discussed further herein.

In addition, our management will look for opportunities to improve the value of the gold projects that we own or may acquire knowledge of or may acquire control through exploration drilling, introduction of technological innovations or acquisition with the goal of developing those properties into operating mines. We expect that emphasis on gold project acquisition and development will continue in the future.

Business Strategy

Our business plan was developed with the overriding goal of maximizing shareholder value through the exploration and development of our mineral properties, utilizing the extensive mining-related background and capabilities of our management and employees, and also through strategic partnerships. To achieve this goal, our business plan focuses on five strategic areas:

Lida Mining District, Nevada

We determined after out review of the data of the prior geological studies to release the option lands covering part of the prospect area to the original owner, Nevada Pacific Rim during the year ended March 31, 2012. During our initial evaluation we did acquire directly several claims in the area for further study in Esmeralda County, Nevada. The Mexus Claims are held pending our study and evaluation, however, at this time there has been no geological evaluation and are no plans scheduled for further work at this time.

Mexus Gold S.A. de C.V. Caborca

Effective March 31, 2011, we have acquired Mexus Gold S.A. de C.V. We began funding the operations in Mexico and have instituted a small placer processing operation to evaluate various areas of interest within the project lands.

Mexus-Trinidad Joint Venture

Mexus Gold US entered in to a joint venture known as the Mexus-Trinidad Joint Venture situated in the State of Sonora, Mexico. We are the managing partner of this project and hold 60% interest in the Project lands and facilities. All necessary permits are in place for the operation of the project.

Status of Cable Salvage Operations

We have determined that instituting a salvage operation offshore Alaska initially for the smaller diameter cable will provide us with the knowledge and experience to proceed forward with this project. We have now determined the larger cable will provide a more acceptable return on our investment. We have one vessel capable of conducting reconnaissance operations for the larger cable and are planning to begin such operations within the next 12 months.

Other Exploration Properties

We have staked several claims in the State of Sonora, Mexico in areas of interest to the company.

Mergers and Acquisitions

We will routinely review merger and acquisition opportunities. An appropriate merger and acquisition opportunity must be accretive to the overall value of Mexus Gold US. Our primary focus will be on those opportunities involving precious metal production or near-term production with a secondary focus on other resource-based opportunities. Potential acquisition targets would include private and public companies or individual properties. Although our preference would be for candidates located in the United States and Mexico. Mexus Gold US will consider opportunities located in other countries where the geopolitical risk is acceptable.
 
Mining Operations

We classify our mineral properties into three categories: “Development Properties”, “Advanced Exploration Properties”, and “Other Exploration Properties”. Development Properties are properties where a decision to develop the property into a producing mine has been made. Advanced Exploration Properties are those properties where we retain a significant ownership interest or joint venture and where there has been sufficient drilling and analysis to identify and report proven and probable reserves or other mineralized material. We currently do not have a Development Property or Advanced Exploration Property. Other Exploration Properties are those that do not fall into the other categories. Please see below for information about our Other Exploration Properties.

Other Exploration Properties

Our Other Exploration Properties consist of the following:

Mining Properties located in the state of Nevada

Lida Mining District 

Mexus Gold US entered into an agreement on lands located in Esmeralda County, Nevada. Mexus Gold US holds an option on 150 acres of patented lands, including 14 mining claims and two mill sites with water rights. Mexus Gold US has also staked 12 additional mining claims, including 2 fractions, as a result of initial geological evaluations. On July 9, 2011, Mexus Gold US entered into an Agreement to extend the option period until July 7, 2012. At that time the option lands were released to the original claim owner. The Mexus Claims are held pending our study and evaluation, however, at this time there has been no geological evaluation and are no plans scheduled for further work at this time.

Mining Properties Located in Mexico

The following properties are located in Mexico and owned by Mexus Gold S.A. de C.V., our wholly owned subsidiary:

Caborca Project

On January 5, 2011, Mexus Gold Mining S.A. de C.V. entered into a Purchase Agreement to purchase the Caborca Project. The Caborca Project consists of 7,400 acres (3,000 hectares) about 50 kilometers northwest of the City of Caborca, Sonora State, Mexico. The Caborca Project lies on claims filed by the owners of the Santa Elena Ranch, which controls the surface rights over the project claims. The claims lie near 112o 25' W, 31o 7.5" N. These claims were visited near the end of January, 2011. On or about July 11, 2011, we acquired five additional claims surrounding the Caborca Project consisting of approximately 1,000 additional acres.

We have been unable to locate geologic maps of the area from the Government Geological Survey. However, pursuant to our investigation of the project, the claims were found to be underlain by an igneous complex. The rocks observed included many types of granitic rocks, exhibiting porphyrytic textures, gneissic and equigrannular textures. Quartz was variable. At times quartz "eyes" were observed, that is porphyrytic quartz which many workers consider to be indicative of a porphyry environment. In other localities, no quartz was evident. When no quartz was present, the rock was equigrannular. Quartz veining was evident throughout the claim group. A mine was previously developed along a major quartz vein, called the Julio 2 Mine with the vein being called the Julio Vein.

There are multiple exploration targets on the Caborca Project. The two most important are the quartz stockwork zone and the Julio vein system. The first target will be the quartz stockwork zone. Several drill holes have been completed in this zone to test the mineral potential of this area. Additional holes will be completed to test the Julio vein system further.

Ocho Hermanos (Eight Brothers) Project

The main feature of this project area is an apparent “manto” sulfide zone composed primarily of galena with some pyrite, arsenopyrite and possibly phyrrotite. Above this zone there is an oxide zone composed of iron and lead oxides. Reconnaissance and characterization samples taken indicated sporadically high gold and silver values. The deposit occurs in shallow water sediments (principally quartzites, with some limestone and shales) and can be best characterized as a skarn type deposit due to the presence of intrusive rocks within 1 kilometer.
As of the date of this report, Mexus Gold US has obtained all necessary permits and environmental permits to begin operations. As of June 30, 2013, Mexus Gold US has completed a bypass water channel around the 8 Brothers mine.

Metallurgical work continued during the past year. Given the complex nature of the sulfide deposit and the partial oxidization of the material (indicated by the presence of yellow colored lead oxides), a satisfactory recovery method could not be found. Consequently, further work beyond the initial reconnaissance and characterization sampling was not completed and the entire project was put on hold.

El Scorpion Project Area

This area has several shear zones and veins which show copper and gold mineralizations. Recent assays of an 84’ drill hole shows 1.750% per ton to .750% per ton of copper and 3.971 grams per ton to 0.072 grams per ton of gold. Another assay of rock sample from the area shows greater than 4.690% per ton copper. This land form distribution appears to be synonymous to the ideal porphyry deposit at Baja La Alumbrera, Argentina.

Los Laureles

As of the date of this Report, we have opened old workings at the Los Laureles claim and have discovered a gold carrying vein running north and south into the mountain to the south. Further work and analysis will be required; however, the project is placed on hold at this time.

Mexus-Trinidad Joint Venture

Mexus Gold US entered in to a joint venture known as the Mexus-Trinidad Joint Venture situated on the State of Sonora, Mexico. We are the managing partner of this project and hold 60% interest in the Project lands and facilities. All necessary permits are in place for the operation of the project.

Employees

Mexus Gold US has no employees at this time. Consultants with specific skills are utilized to assist with various aspects of the requirements of activities such as project evaluation, property management, due diligence, acquisition initiatives, corporate governance and property management. If we complete our planned activation of the Nichols Property Exploration and Drilling Program, Cable Salvage Operations and operations of the Mexican mining properties, our total workforce will be approximately 30 persons. Mr. Paul D. Thompson is our sole officer and director.

Competition

Mexus Gold US competes with other mining companies in connection with the acquisition of gold properties. There is competition for the limited number of gold acquisition opportunities, some of which is with companies having substantially greater financial resources than Mexus Gold US. As a result, Mexus Gold US may have difficulty acquiring attractive gold projects at reasonable prices.

Management of Mexus Gold US believes that no single company has sufficient market power to affect the price or supply of gold in the world market.

Legal Proceedings

There are no legal proceedings to which Mexus Gold US or Mexus Gold S.A. de C.V. is a party or of which any of our properties are the subject thereof.

Property Interests, Mining Claims, and Risk

Property Interests and Mining Claims

Our exploration activities are conducted in the state of Nevada. Mineral interests may be owned in this state by (a) the United States, (b) the state itself, or (c) private parties. Where prospective mineral properties are owned by private parties, or by the state, some type of property acquisition agreement is necessary in order for us to explore or develop such property. Generally, these agreements take the form of long term mineral leases under which we acquire the right to explore and develop the property in exchange for periodic cash payments during the exploration and development phase and a royalty, usually expressed as a percentage of gross production or net profits derived from the leased properties if and when mines on the properties are brought into production. Other forms of acquisition agreements are exploration agreements coupled with options to purchase and joint venture agreements. Where prospective mineral properties are held by the United States, mineral rights may be acquired through the location of unpatented mineral claims upon unappropriated federal land. If the statutory requirements for the location of a mining claim are met, the locator obtains a valid possessory right to develop and produce minerals from the claim. The right can be freely transferred and, provided that the locator is able to prove the discovery of locatable minerals on the claims, is protected against appropriation by the government without just compensation. The claim locator also acquires the right to obtain a patent or fee title to his claim from the federal government upon compliance with certain additional procedures.

Mining claims are subject to the same risk of defective title that is common to all real property interests. Additionally, mining claims are self-initiated and self-maintained and therefore, possess some unique vulnerabilities
not associated with other types of property interests. It is impossible to ascertain the validity of unpatented mining claims solely from an examination of the public real estate records and, therefore, it can be difficult or impossible to confirm that all of the requisite steps have been followed for location and maintenance of a claim. If the validity of a patented mining claim is challenged by the BLM or the U.S. Forest Service on the grounds that mineralization has not been demonstrated, the claimant has the burden of proving the present economic feasibility of mining minerals located thereon. Such a challenge might be raised when a patent application is submitted or when the government seeks to include the land in an area to be dedicated to another use.

Reclamation

We may be required to mitigate long-term environmental impacts by stabilizing, contouring, re-sloping and re-vegetating various portions of a site after mining and mineral processing operations are completed. These reclamation efforts will be conducted in accordance with detailed plans, which must be reviewed and approved by the appropriate regulatory agencies.

Risk

Our success depends on our ability to recover precious metals, process them, and successfully sell them for more than the cost of production. The success of this process depends on the market prices of metals in relation to our costs of production. We may not always be able to generate a profit on the sale of gold or other minerals because we can only maintain a level of control over our costs and have no ability to control the market prices. The total cash costs of production at any location are frequently subject to great variation from year to year as a result of a number of factors, such as the changing composition of ore grade or mineralized material production, and metallurgy and exploration activities in response to the physical shape and location of the ore body or deposit. In addition costs are affected by the price of commodities, such as fuel and electricity. Such commodities are at times subject to volatile price movements, including increases that could make production at certain operations less profitable. A material increase in production costs or a decrease in the price of gold or other minerals could adversely affect our ability to earn a profit on the sale of gold or other minerals. Our success depends on our ability to produce sufficient quantities of precious metals to recover our investment and operating costs.

The Company is dependent upon outside financing to continue operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management’s plan to raise necessary funds through a private placement of its common stock to satisfy the capital requirements of the Company’s business plan. There is no assurance that the Company will be able to raise necessary funds or that if it is successful in raising the necessary funds, that the Company will successfully operate its business plan.

Distribution Methods of the Products

The end product of our operations will usually be doré bars. Doré is an alloy consisting of gold, silver and other precious metals. Doré is sent to refiners to produce bullion that meets the required market standard of 99.95% pure gold. Under the terms of refining agreements we expect to execute, the doré bars are refined for a fee and our share of the refined gold, silver and other metals are credited to our account or delivered to our buyers who will then use the refined metals for fabrication or held for investment purposes.

General Market

The general market for gold has two principal categories, being fabrication and investment. Fabricated gold has a variety of end uses, including jewelry, electronics, dentistry, industrial and decorative uses, medals, medallions and official coins. Gold investors buy gold bullion, official coins and jewelry. The supply of gold consists of a combination of current production from mining and the draw-down of existing stocks of gold held by governments, financial institutions, industrial organizations and private individuals.
 
Patents, trademarks, licenses, franchises, concessions, royalty agreements, or labor contracts, including duration;

We do not have any designs or equipment which is copyrighted, trademarked or patented.

Effect of existing or probable governmental regulations on the business

Government Regulation

Mining operations and exploration activities are subject to various national, state, provincial and local laws and regulations in the United States, which govern prospecting, development, mining, production, exports, taxes, labor standards, occupational health, waste disposal, protection of the environment, mine safety, hazardous substances and other matters. We have obtained or have pending applications for those licenses, permits or other authorizations currently required to conduct our exploration and other programs. We believe that Mexus Gold US is in compliance in all material respects with applicable mining, health, safety and environmental statutes and the regulations passed there under in Nevada and the United States and in any other jurisdiction in which we will operate. We are not aware of any current orders or directions relating to Mexus Gold US with respect to the foregoing laws and regulations.

Environmental Regulation
 
Our gold projects are subject to various federal and state laws and regulations governing protection of the environment. These laws are continually changing and, in general, are becoming more restrictive. It is our policy to conduct business in a way that safeguards public health and the environment. We believe that the actions and operations of Mexus Gold US will be conducted in material compliance with applicable laws and regulations. Changes to current state or federal laws and regulations in Nevada, where we operate currently, or in jurisdictions where we may operate in the future, could require additional capital expenditures and increased operating and/or reclamation costs. Although we are unable to predict what additional legislation, if any, might be proposed or enacted, additional regulatory requirements could impact the economics of our projects.

Research and Development

We do not foresee any immediate future research and development costs.

Costs and effects of compliance with environmental laws

Our gold projects are subject to various federal and state laws and regulations governing protection of the environment. These laws are continually changing and, in general, are becoming more restrictive. It is our policy to conduct business in a way that safeguards public health and the environment. We believe that our operations are and will be conducted in material compliance with applicable laws and regulations. The economics of our current projects consider the costs and expenses associated with our compliance policy.

Changes to current state or federal laws and regulations in Nevada, where we operate currently, or in jurisdictions where we may operate in the future, could require additional capital expenditures and increased operating and/or reclamation costs. Although we are unable to predict what additional legislation, if any, might be proposed or enacted, additional regulatory requirements could impact the economics of our projects.

Results of Operations

The following management’s discussion and analysis of operating results and financial condition of Mexus Gold US is for the three month period ended June 30, 2013 and 2012 and for the period from September 18, 2009 (exploration stage re-entry) through June 30, 2013. All amounts herein are in U.S. dollars.

Three Months Ended June 30, 2013 compared with the Three Months Ended June 30, 2012 and September 18, 2009 (Exploration Stage Re-Entry) through June 30, 2013

    We had a net loss during the three months ended June 30, 2013 of $1,141,997 compared to a net loss of $245,982 during the same period in 2012.  We had a cumulative net loss of $9,778,720 for the period from September 18, 2009 (Exploration Stage Re-Entry) through June 30, 2013.  The increase in net loss are attributable to the increase in (i) Exploration Costs – a $743,249 increase in exploration costs primarily attributable to the Joint Venture Agreement entered into between Mexus Gold US, Mexus Gold Mining, Minerals La Negra S. de R.L. de C.V. and Trinidad Pacifica S. de R.L. de C.V. on November 1, 2012 (ii) Bad debt expense of $247,509 (2012 - $0) (iii) Stock-based expenses of $37,500 (2012 - $0) (iv) General and administrative expense of $18,608 due to an increase in rent, audit and accounting costs.

Revenue

For the three months ended June 30, 2013, we had revenues of $406,387 compared to $105,583 for the three months ended June 30, 2012.  We recorded revenues of $1,826,040 for the cumulative period from September 18, 2009 (Exploration Stage Re-Entry) through June 30, 2013.

The revenues of $406,387 for the three months ended June 30, 2013 are from our gold mining operations in Mexico. While the Company is in the exploration stage we are earning revenue from placer operations and experimental mineral processing to help fund our exploration activities.

Operating Expenses

Total operating expenses increased to $1,364,818 during three months ended June 30, 2013, compared to $345,848 for the three months ended June 30, 2012.  Total operating expenses for the period from September 18, 2009 (exploration stage re-entry) through June 30, 2013 were $11,305,618.  The increase in operating expenses for each of these periods was due to our expansion into the mining operations through the exploration activities of our properties, bad debt expense and stock-based expenses.

Other Income (Expense)

We incurred $161,774 of interest expense during the three months ended June 30, 2013 compared to $5,717 during the same period in 2012.

The increase is attributable to the:

(a) Issuance of promissory notes for $255,000 in cash during the three month period ended June 30, 2013. The Notes bear interest of 4% per annum and are due on December 31, 2013. In addition, a fee of 2,550,000 shares of common stock of the Company valued at $501,075 ($0.1965 per share) was paid to the Note holders on April 18, 2013. During the three months ended June 30, 2013, deferred financing expense of $142,329 recognized as interest expense using the straight line method, which approximates the effective interest method, and

(b) Issuance of secured convertible promissory notes for $250,000 in cash.  The notes are convertible in to shares of common stock of the Company at a price of $0.23 per shares.  The conversion price is subject to adjustment by an anti-dilution clause.  In conjunction with the issuance of the Notes on June 12, 2013, the Company issued a variable number of warrants of the Company’s common stock equal to $278,750 divided by the Market Price.  Market Price is defined as the higher of (i) the closing price of the common stock of the Company on June 12, 2013, and (ii) the VWAP of the common stock for the trading day that is two days prior to the exercise date.  The Exercise Price of the warrants are $0.24 per share. The Exercise Price is subject to adjustment by an anti-dilution clause. As a result of a discount recorded on the Note, the Company recorded $14,048 as interest accretion expense during the three months ended June 30, 2013.

Liquidity and Capital Resources

At June 30, 2013, we had cash of $84,546 compared to $104,701 at March 31, 2013.  This increase in cash is primarily due to revenue and the issuance of promissory notes, secured convertible promissory notes and shares of common stock.

Our equipment decreased to $1,862,830 at June 30, 2013, compared to $1,955,813 at March 31, 2013. The decrease in equipment is largely due to depreciation expense of $85,684 during the three months ended June 30, 2013.

Equipment under construction increased to $105,977 at June 30, 2013, compared to $52,575 at March 31, 2013.  The increase is due to the construction of a new plant in Mexico.

Our mineral properties remained unchanged at $1,233,483 at June 30, 2013 and March 31, 2013.

Total assets increased to $3,686,489 at June 30, 2013, compared to $3,371,591 at March 31, 2013.  The majority of the increased assets related to the capitalized of deferred finance expense on the Promissory Notes issued during the three months ended June 30, 2013.

Our total liabilities increased to $1,066,025 at June 30, 2013, compared to $493,105 as of March 31, 2013.  The increase in our total liabilities can be primarily attributed to the issuance of promissory notes and secured convertible promissory notes.

The Company is dependent upon outside financing to continue operations. It is management’s plans to raise necessary funds through a private placement of its common stock to satisfy the capital requirements of the Company’s business plan. There is no assurance that the Company will be able to raise the necessary funds, or that if it is successful in raising the necessary funds, that the Company will successfully execute its business plan.

Future goals

The Caborca Properties have become our primary focus after our installation of a small placer recovery plant to conduct tests on prospective placer areas and determine the viability of the placer deposits while we conducted evaluations of the other Mexico properties. We have added additional equipment which will allow the continuation of mining operations of the placer deposits.

The Company has now scheduled the installation of a crushing/milling recovery plant for the high grade Julio quartz deposit as a result of the values of the assay analysis from the deposit which range from .250 to 5.5 ounces of gold per ton. This equipment should be in place and operational during August, 2012.

Therefore, our goal for the current year is to increase the cash flow of the placer mining operation, continue the drilling program which begun during 2011, initialize mining operations on the Julio quartz deposit while we conduct a thorough geological study by an independent geological firm of the future potential of other vein deposits located near the Julio deposit.

Foreign Currency Transactions

The majority of our operations are located in United States and most of our transactions are in the local currency. We plan to continue exploration activities in Mexico and therefore we will be exposed to exchange rate fluctuations. We do not trade in hedging instruments and a significant change in the foreign exchange rate between the United States Dollar and Mexican Peso could have a material adverse effect on our business, financial condition and results of operations.

Off-balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.

ITEM 4(T).     CONTROLS AND PROCEDURES

We conducted an evaluation, under the supervision and with the participation of management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this quarterly report.

Based on this evaluation, our chief executive officer and chief financial officer concluded that as of the evaluation date our disclosure controls and procedures were not effective. Our procedures were designed to ensure that the information relating to our company required to be disclosed in our SEC reports is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow for timely decisions regarding required disclosure.  Management is currently evaluating the current disclosure controls and procedures in place to see where improvements can be made.

ITEM 5.     OTHER INFORMATION

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Under the supervision and with the participation of management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of our internal controls over financial reporting based on the framework in “Internal Control Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon this evaluation, management has concluded that our internal control over financial reporting was not effective as of June 30, 2013, to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Steps that the Company believes it must undertake is to retain a consulting firm to, among other things, design and implement adequate systems of accounting and financial statement disclosure controls during the current fiscal year to comply with the requirements of the SEC. We believe that the ultimate success of our plan to improve our disclosure controls and procedures will require a combination of additional financial resources, outside consulting services, legal advice, additional personnel, further reallocation of responsibility among various persons, and substantial additional training of those of our officers, personnel and others, including certain of our directors such as our committee chairs, who are charged with implementing and/or carrying out our plan. 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as required in Rule 13a-15(b).  We are conducting an evaluation to design and implement adequate systems of accounting and financial statement disclosure controls.  We expect to complete this review during 2013 to comply with the requirement of the SEC.  We believe that the ultimate success of our plan to improve our internal control over financial reporting will require a combination of additional financial resources, outside consulting services, legal advice, additional personnel, further reallocation of responsibility among various persons, and substantial additional training of those of our officers, personnel and others, including certain of our directors such as our Chairman of the Board and Chief Financial Officer,  who are charged with implementing and/or carrying out our plan.  It should also be noted that the design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.
 
Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls or our internal control over financial reporting, or any system we design or implement in the future, will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control

There have not been any changes in our internal control over financial reporting during the three month period ended June 30, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 PART II – OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

We are not subject to any legal proceedings responsive to this Item Number.

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On May 3, 2013, the Company issued 880,717 shares of common stock to satisfy obligations under share subscription agreements for $137,250 in cash included in share subscriptions payable.

On May 21, 2013, the Company issued 823,334 shares of common stock to satisfy obligations under share subscription agreements for $125,250 in cash included in share subscriptions payable.

On May 22, 2013, the Company issued 2,550,000 shares of common stock to satisfy obligations under share subscription agreements for $501,075 in financing fees included in share subscriptions payable.

On June 17, 2013, the Company issued 387,500 shares of common stock to satisfy obligations under share subscription agreements for $27,000 in cash included in share subscriptions payable.

On June 26, 2013, the Company issued 824,509 shares of common stock to satisfy obligations under share subscription agreements for $43,000 in cash and $34,500 in services included in share subscriptions payable.

The issuance of securities described above were deemed to be exempt from registration under the Securities Act in reliance on Section 4(2) of the Securities Act of 1933 and Regulation D as transactions by an issuer not involving any public offering.  The recipients of securities in each such transaction represented their intention to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends were affixed to the share certificates and other instruments issued in such transactions. The sales of these securities were made without general solicitation or advertising.

The Company intends to use the proceeds from sale of the securities for the purchase of equipment for mining operations, mining machinery, supplies and payroll for operations, professional fees, and working capital.

There were no underwritten offerings employed in connection with any of the transactions set forth above.

ITEM 3.     DEFAULT UPON SENIOR SECURITIES

On February 16, 2010, the Company made an unsecured Promissory Note Agreement with William McCreary in the amount of $2,500 at eight percent interest and due on demand or no later than September 1, 2010. The Company has not made the scheduled payments and is in default on this note.

ITEM 4.     MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.     OTHER INFORMATION

None.

 
 

 

ITEM 6.     EXHIBITS

Statements
       
         
Consolidated Balance Sheets at June 30, 2013 and March 31, 2013
       
         
Consolidated Statements of Operations for the three months ended  June 30, 2013 and 2012 and the period from September 18, 2009 (Exploration Stage Re-Entry) through June 30, 2013
         
Consolidated Statements of Cash Flows for the three months ended  June 30, 2013 and 2012 and the period from September 18, 2009 (Exploration Stage Re-Entry) through June 30, 2013
         
Notes to Consolidated Financial Statements
       
         
Schedules
       
         
All schedules are omitted because they are not applicable or the required information is shown in the Financial Statements or notes thereto.
         
 
Exhibit
Form
Filing
Filed with
Exhibits
#
Type
Date
This Report
         
Articles of Incorporation filed with the Secretary of State of Colorado on June 22, 1990
3.1
10-SB
1/24/2007
 
         
Articles of Amendment to the Articles of Incorporation filed with the Secretary of State of Colorado on October 17, 2006
3.2
10-SB
1/24/2007
 
         
Articles of Amendment to Articles of Incorporation filed with the Secretary of State of the State of Colorado on January 25, 2007
3.3
10KSB
6/29/2007
 
         
Amended and Restated Bylaws dated December 30, 2005
3.3
10-SB
1/24/2007
 
         
Code of Ethics
14.1
10-KSB
6/29/2007
 
         
Certification of Paul D. Thompson, pursuant to Rule 13a-14(a)
31.1
   
X
         
Certification of Paul D. Thompson pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.1
   
X
         
XBRL Instance Document
101.INS
   
X
         
XBRL Taxonomy Extension Schema Document
101.SCH
   
X
         
XBRL Taxonomy Extension Calculation Linkbase Document
101.CAL
   
X
         
XBRL Taxonomy Extension Definition Linkbase Document
101.DEF
   
X
         
XBRL Taxonomy Extension Label Linkbase Document
101.LAB
   
X
         
XBRL Taxonomy Extension Presentation Linkbase Document
101.PRE
   
X


 
 

 



Signatures
 
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
August 14, 2013
 
/s/ Paul D. Thompson
Paul D. Thompson
Chief Executive Officer
Chief Financial Officer
Principal Accounting Officer
Director


EX-31.1 2 ex311.htm EX 31.1 ex311.htm
Exhibit 31.1

I, Paul D. Thompson, certify that:

1. I have reviewed this Report on Form 10-Q for Mexus Gold US;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.           The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:           August 14, 2013

/s/ Paul D. Thompson
Paul D. Thompson
                Chief Executive Officer
Chief Financial Officer
Principal Accounting Officer


 
 

 

EX-32.1 3 ex321.htm EX 32.1 ex321.htm
Exhibit 32.1


CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Mexus Gold US, a Nevada Corporation, (the “Company”) on Form 10-Q for the Quarter ended June 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certify the following pursuant to Section 18, U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002:

1.  
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.  
The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Paul D. Thompson
Paul D. Thompson
Chief Executive Officer
Chief Financial Officer
Principal Accounting Officer

August 14, 2013


 
 

 

EX-101.INS 4 mxsg-20130630.xml EX 101.INS 84546 104701 26592 25019 111138 129720 1862830 1955813 1862830 1955813 373061 0 105977 52575 1233483 1233483 1712521 1286058 3686489 3371591 100846 68750 19633 12863 173394 192500 248421 218992 255000 0 44505 0 210178 0 14048 0 1066025 493105 1066025 493105 0 0 375 375 217934 212468 12129380 11266771 433269 417369 -648441 -648441 -8933332 -7893186 3199185 3355356 -578721 -476870 2620464 2878486 3686489 337159 293452 0 0.001 0.001 9000000 9000000 0.001 0.001 1000000 1000000 375000 375000 375000 375000 0.001 0.001 500000000 500000000 217934132 212468077 217934132 212468077 406387 105583 1826040 406387 105583 1826040 192984 174376 2960746 247509 0 488182 886825 143576 4997638 37500 0 2523786 0 0 339664 0 0 -283715 1364818 345848 11305618 -161774 -5717 -277350 -17109 0 -17109 -4683 -183566 -5717 -299142 -1141997 -245982 -9778720 -101851 0 -845388 -1040146 -245982 -8933332 -0.00 -0.00 213659127 181016800 0 27896 279317 <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>1.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>ORGANIZATION AND BUSINESS OF COMPANY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Mexus Gold US (the &#147;Company&#148;) was originally incorporated under the laws of the State of Colorado on June 22, 1990, as U.S.A. Connection, Inc.&nbsp;&nbsp;On October 28, 2005, the Company changed its&#146; name to Action Fashions, Ltd. On September 18, 2009, the Company changed its&#146; domicile to Nevada and changed its&#146; name to Mexus Gold US to better reflect the Company&#146;s new planned principle business operations. The Company has a fiscal year end of March 31.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company re-entered the exploration stage as of September 18, 2009, as defined by the Financial Accounting Standard Board (FASB) in FASB ASC 915-10, &#147;Development Stage Entities&#148;. The Company is devoting substantially all of its present efforts to establish a new business and none of its planned principal operations have commenced. All losses accumulated since re-entry into the exploration stage has been considered part of the Company&#146;s exploration stage activities.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company is a mining company engaged in the evaluation, acquisition, exploration and advancement of gold, silver and copper projects in the State of Sonora, Mexico and the Western United States, as well as, the salvage of precious metals from identifiable sources.</p> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>2.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>BASIS OF PREPARATION</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q, the consolidated financial statements, footnote disclosures and other information normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The consolidated financial statements contained in this report are unaudited but, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the consolidated financial statements.&nbsp;&nbsp;All significant inter-company accounts and transactions have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. The consolidated balance sheet at March 31, 2013 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management reviews these estimates and assumptions on an ongoing basis using currently available information. Actual results could differ from those estimates.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Cash and Cash Equivalents</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Per Share Data</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share". Basic earnings per common share (&#147;EPS&#148;) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Fair Value of Financial Instruments</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company's financial instruments consist of cash, accounts payable, accrued liabilities, advances, notes payable, and a loan payable. The carrying amount of these financial instruments approximate fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Our warrant derivative liability and secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The notes payable, loans payable and secured convertible promissory notes have fixed interest rates therefore the Company is exposed to interest rate risk in that they could not benefit from a decrease in market interest rates. In seeking to minimize the risks from interest rate fluctuations, the Company manages exposure through its normal operating and financing activities.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Deferred Financing Costs</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Deferred financing costs are amortized to interest expense based on the terms of the related debt instruments on a straight- line basis, which approximates the effective interest rate method.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Accounting for Derivative Instruments</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Accounting standards require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value.&nbsp;&nbsp;A change in the market value of the financial instrument is recognized as a gain or loss in results of operations in the period of change.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Stock-based Compensation</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Revenue Recognition</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Exploration and Development Costs</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Mineral Property Rights</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs would be based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, <i>Impairment or Disposal of Long-Lived Assets</i>.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Reclassification</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company reclassified $18,052 of accounts payable, related party as of March 31, 2013 to accounts payable to conform to the current presentation.&nbsp;&nbsp;The reclassification had no effect on the Company&#146;s financial condition, results of operations, or cash flows.</p> <!--egx--><div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>3.</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>GOING CONCERN</b></p></td></tr></table></div> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company has a limited operating history and limited funds and has an accumulated deficit of $648,441 and an accumulated deficit since re-entry into the exploration stage of $8,933,332 at June 30, 2013. These factors, among others, may indicate that the Company may not be able to continue as a going concern.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company is dependent upon outside financing to continue operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management&#146;s plans to raise necessary funds through a private placement of its common stock to satisfy the capital requirements of the Company&#146;s business plan. There is no assurance that the Company will be able to raise the necessary funds, or that if it is successful in raising the necessary funds, that the Company will successfully execute its business plan.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The financial statements do not include any adjustments relating to the recoverability and classification of assets and/or liabilities that might be necessary should the Company be unable to continue as a going concern. The continuation as a going concern is dependent upon the ability of the Company to meet our obligations on a timely basis, and, ultimately to attain profitability.</p> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>4.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="19" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:14.2pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>There have been no recent accounting pronouncements or changes in accounting pronouncements that impacted the first quarter of fiscal 2014, or which are expected to impact future periods that were not already adopted and disclosed in prior periods.</p></td></tr></table></div> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>5.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>NOTE RECEIVABLE AND RECOVERABLE DISBURSEMENT - RELATED PARTY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On October 29, 2012, the Company entered into a note agreement with Kenneth Azuka, owner and operator of Trinidad Pacifica in the amount of $140,000.&nbsp;&nbsp;On February 28, 2013, an additional $10,000 advance was disbursed to Kenneth Azuka. The business purpose of the $140,000 note and advance of $10,000 was to pay payroll and social security tax arrears of Trinidad Pacifica that were incurred prior to November 1, 2012. This note is non-interest bearing and is due on July 29, 2013.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>In addition, the Company paid $90,673 and $247,509 directly to suppliers for expenses incurred by Trinidad Pacifica from November 1, 2012 to March 31, 2013 and April 1, 2013 to June 30, 2013, respectively. The Company recorded these payments as a recoverable disbursement since these expenses were incurred by Trinidad Pacifica prior to November 1, 2012, the date of the Joint Venture Agreement.&nbsp;&nbsp;The Company plans to recover these disbursements from the other Venturers as it was represented to the Company in the Joint Venture Agreement that there were no outstanding liabilities from activities of the Venturers prior to November 1, 2013 which the Company was responsible.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>At June 30, 2013, the note, advance and recoverable disbursements were determined to be impaired since the Company believes the debtor does not have the financial capacity to repay these debts at June 30, 2013.&nbsp;&nbsp;A bad debt expense of $240,673 and $247,509 was recorded in the consolidated statement of operations for the year ended March 31, 2013 (2012 -$0) and the three months ended June 30, 2013 (2012 - $0), respectively. The Company plans to recover these amounts from either Kenneth Azuka, the Joint Venture or from the other Venturers interest in the Joint Venture. The recovery, if any, will be recorded in the consolidated statement of operations in the period collectability is reasonably assured.</p> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>6.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>ACCOUNTS PAYABLE &#150; RELATED PARTIES</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2013 and 2012, the Company incurred rent expense to Paul D. Thompson, the sole director and officer of the Company, of $11,400 and $11,400, respectively.&nbsp;&nbsp;At June 30, 2013 and March 31, 2013, $19,633 and $12,863 for this obligation is outstanding, respectively.</p> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>7.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>NOTES PAYABLE</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On January 8, 2013, the Company entered into an unsecured promissory note agreement with William H. Brinker in the amount of $185,000.&nbsp;&nbsp;The note is due on demand upon the occurrence of certain events and at the discretion of the note holder. A finance charge of $5,000 is due on or before March 31, 2013. The note is secured by 5,000,000 shares of common stock of Mexus Gold US pledged by the Company and certain mining equipment include a radial stacker and cone crushing plant.&nbsp;&nbsp;On April 1, 2013, the Company repaid $50,000 in principal and $140,000 remains outstanding at June 30, 2013 ($190,000 &#150; March 31, 2013).</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>In June 2013, the Company received advances totalling 400,000 Mexican Pesos ($30,894 USD). These advances are non-interest bearing, unsecured and have no specific terms of repayment.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Defaulted Senior Notes</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On February 16, 2010, the Company made an unsecured Promissory Note Agreement with William McCreary in the amount of $2,500 at eight percent interest and due on demand or no later than September 1, 2010. The Company has not made the scheduled payments and is in default on this note as of December 31, 2011. The default rate on the note is eight percent.&nbsp;&nbsp;At June 30, 2013 and March 31, 2013, the balances on this note totalled $2,500 and $2,500, respectively.&nbsp;&nbsp;At June 30, 2013 and March 31, 2013, accrued interest of $3,235 and $3,185 on this note have been included in accounts payable and accrued liabilities, respectively.</p> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>8.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>NOTES PAYABLE &#150; RELATED PARTY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>These notes are unsecured, non-interest bearing and due on demand.&nbsp;&nbsp;These notes were accumulated through a series of cash advances to the Company and are due to Paul D. Thompson, the sole director and officer of the Company.&nbsp;&nbsp;At June 30, 2013 and March 31, 2013, Notes payable &#150; related party totalled $571 and $8,992, respectively.</p> <p style='margin:0in 0in 0pt'>Notes due to Taurus Gold, Inc. are unsecured, non-interest bearing and due on demand.&nbsp;&nbsp;These notes were accumulated through a series of cash advances to the Company. Taurus Gold, Inc. is controlled by Paul D. Thompson, the sole director and officer of the Company.&nbsp;&nbsp;As of June 30, 2013 and March 31, 2013, notes payable due to Taurus Gold Inc. totalled $247,850 and $210,000, respectively.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>9.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>PROMISSORY NOTES</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On April 18, 2013, the Company issued Promissory Notes for $255,000 in cash. The Notes bear interest of 4% per annum and are due on December 31, 2013. The Notes are secured by all of Mexus Gold US shares of stock in Mexus Resources S.A. de C.V. and a personal guarantee of Paul D. Thompson. In addition, a fee of 2,550,000 shares of common stock of the Company valued at $501,075 ($0.1965 per share) was paid to the Note holders on April 18, 2013.&nbsp;&nbsp;These financing fees are capitalized in the consolidated balance sheet as deferred finance expense and are being amortized on a straight-line basis, which approximates the effective interest rate method, as interest expense over the life of the Promissory Notes.</p> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>10.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>SECURED CONVERTIBLE PROMISSORY NOTES</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On June 12, 2013, the Company entered into a Securities Purchase Agreement with Typenex Co-Investment, LLC (&#147;Typenex&#148;), for the sale of an 8% Secured Convertible Promissory Notes (&#147;Notes&#148;) in the principal amount of $557,500 consisting of an initial tranche of $307,500 comprising of $250,000 of cash at closing, Typenex legal expenses in the amount of $7,500 and a $50,000 original issue discount and an additional tranche $250,000 in cash. On June 12, 2013 the Company closed on the initial tranche and on June 30, 2013, the Company has not closed on the additional tranche. The Company has no obligation to pay Typenex any amounts on the unfunded portion of the Note. The Notes have a maturity date that is thirteen months after the issuance date. Typenex has been granted a security interest in the property of the Company.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>At the option of the holder, all principal, costs, charges and interest amounts outstanding under all of the Notes shall be exchanged for shares of the Company&#146;s common stock at the Conversion Price of $0.23 per share. The Conversion Price is subject to an anti-dilution adjustment in the event the Company at any time, while the Notes are outstanding, issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.23 a share.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>In conjunction with the issuance of the Notes on June 12, 2013, the Company issued a variable number of warrants of the Company&#146;s common stock equal to $278,750 divided by the Market Price.&nbsp;&nbsp;Market Price is defined as the higher of (i) the closing price of the common stock of the Company on June 12, 2013, and (ii) the VWAP of the common stock for the trading day that is two days prior to the exercise date.&nbsp;&nbsp;The Exercise Price of the warrants are $0.24 per share. The Exercise Price is subject to an anti-dilution adjustment in the event the Company at any time, while the Warrants are outstanding, issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.24 a share.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The anti-dilution protection for the Note and Warrants excludes (a) the Company&#146;s issuance of securities in connection with strategic license agreements and other partnering arrangements so long as any such issuances are not for the purpose of raising capital and in which holders of such securities or debt are not at any time granted registration rights, and (b) the Company&#146;s issuance of Common Stock or the issuance or grant of options to purchase Common Stock to employees, directors, officers and consultants, authorized by the Company&#146;s board of directors in place on June 12, 2013.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>After six months after the issuance date, monthly installments are due on the Note payable at the option of the Company (i) in cash (ii) in shares of common stock of the Company discounted depending on the Company&#146;s share price at either 30% or 35%, or (iii) in any combination of cash or shares.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On June 12, 2013, the Company recorded a discount on the Note equal to the fair value of the warrant derivative liability and convertible promissory note derivative liability. This discount is amortized using the effective interest rate method over the term of the Note.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:black 1pt solid;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="35%" colspan="2" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:35%;padding-right:0in;background:#cceeff;border-top:black 1pt solid;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Three months ended June 30,</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2013</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2012</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Cash advanced on closing of the initial tranche</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250,000</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Discounts on Note</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Fair value of warrant derivative liability</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(219,372)</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Fair value of convertible promissory note liability</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(45,362)</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Loss on derivative liabilities</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>14,734</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Amortization of discount on Note</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,048</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="20%" style='border-bottom:black 2.25pt double;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,048</p></td> <td valign="top" width="15%" style='border-bottom:black 2.25pt double;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr></table></div> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>11.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>WARRANT DERIVATIVE LIABILITY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Warrants are subject to anti-dilution adjustments that allow for the reduction in the Exercise Price in the event the Company subsequently issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.24 a share.&nbsp;The Company accounted for the warrants in accordance with ASC Topic 815. Accordingly, the Warrants are not considered to be solely indexed to the Company&#146;s own stock and, as such, recorded as a liability.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company&#146;s warrant derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Exercise Price contains an anti-dilution adjustment, the probability that the Exercise Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 12, 2013</p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 30, 2013</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.105</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.100</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.24</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.24</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.15%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.41%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>150%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>150%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>60 months</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>59 months</p></td></tr></table></div> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The fair value of the conversion option derivative liability is $219,372 and $210,178 at June 12, 2013 and June 30, 2013, respectively. The decrease in the fair value of the conversion option derivative liability of $9,195 is recorded as a gain in the unaudited consolidated condensed statement of operations for the three months ended June 30, 2013.</p> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="36" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:27pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>12.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Notes are subject to anti-dilution adjustments that allow for the reduction in the Conversion Price in the event the Company subsequently issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.23 a share.&nbsp;The Company accounted for the conversion option in accordance with ASC Topic 815. Accordingly, the Conversion Option is not considered to be solely indexed to the Company&#146;s own stock and, as such, recorded as a liability.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company&#146;s convertible promissory note derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Conversion Price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.</p> <p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 12, 2013</p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 30, 2013</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.105</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.100</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.23</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.23</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.14%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.15%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>114%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>114%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>13 months</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>12 months</p></td></tr></table></div> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The fair value of the conversion option derivative liability is $44,505 and $45,362 at June 30, 2013 and June 12, 2013, respectively. The decrease in the fair value of the conversion option derivative liability of $857 is recorded as a gain in the unaudited consolidated condensed statement of operations for the three months ended June 30, 2013.</p> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>13.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>STOCKHOLDERS&#146; EQUITY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The stockholders&#146; equity of the Company comprises the following classes of capital stock as of June 30, 2013 and March 31, 2013:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Preferred Stock, $.001 par value per share; 9,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2013 and March 31, 2013, respectively.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Series A Convertible Preferred Stock (&#145;Series A Preferred Stock&#148;), $.001 par value share; 1,000,000 shares authorized:&nbsp;375,000&nbsp;shares issued and outstanding at June 30, 2013 and March 31, 2013.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On August 22, 2011, the Board of Directors designated 1,000,000 shares of its Preferred Stock, $0.001 par value as Series A Preferred Stock.&nbsp;&nbsp;Holders of Series A Preferred Stock may convert one share of Series A Preferred Stock into one share of Common Stock.&nbsp;&nbsp;Holders of Series A Preferred Stock have the number of votes determined by multiplying (a) the number of Series A Preferred Stock held by such holder, (b) the number of issued and outstanding Series A Preferred Stock and Common Stock on a fully diluted basis, and (c) 0.000006.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Common Stock, par value of $0.001 per share; 500,000,000 shares authorized: 217,934,132 and 212,468,077 shares issued and outstanding at June 30, 2013 and March 31, 2013, respectively. Holders of Common Stock have one vote per share of Common Stock held.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On May 3, 2013, the Company issued 880,714 shares of common stock to satisfy obligations under share subscription agreements for $137,250 in cash included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On May 21, 2013, the Company issued 823,332 shares of common stock to satisfy obligations under share subscription agreements for $125,250 in cash included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On May 22, 2013, the Company issued 2,550,000 shares of common stock to satisfy obligations under share subscription agreements for $501,075 in financing fees included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On June 17, 2013, the Company issued 387,500 shares of common stock to satisfy obligations under share subscription agreements for $27,000 in cash included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On June 26, 2013, the Company issued 824,509 shares of common stock to satisfy obligations under share subscription agreements for $43,000 in cash and $34,500 in services included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Common Stock Payable</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2013, the Company received $338,900 in cash in exchange for subscriptions payable of 3,240,174 shares of common stock ($0.105 per share).</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2013, the Company issued subscriptions payable for 325,000 shares of common stock for services valued at $37,500 ($0.115 per share).</p> <!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>14.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>SUBSEQUENT EVENTS</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On July 16, 2013, the Company issued 66,666 shares of common stock to satisfy obligations under share subscription agreements for $6,000 in cash included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On July 17, 2013, the Company issued 125,000 shares of common stock to satisfy obligations under share subscription agreements for $10,000 in cash included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On July 22, 2013, the Company issued 576,571 shares of common stock to satisfy obligations under share subscription agreements for $2,400 in cash and $3,000 in services, included in share subscriptions payable, and $30,000 in cash and $11,000 in services for subscriptions agreements entered into in July 2013.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On July 31, 2013, the Company issued 1,014,285 shares of common for $71,000 in cash and 150,000 shares of common stock for annual mineral lease payment valued at $15,150 ($0.101 per share).</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> -1141997 -245982 -9778720 85684 57376 707566 0 0 279317 0 0 11000 0 0 -283715 37500 27896 2495316 161774 0 223405 7500 0 7500 0 0 339664 247509 0 488182 4683 0 4683 -1573 2971 -26592 19154 -38524 454494 -579766 -196263 -5077900 -1200 -147854 -1965508 -45903 -2779 -467511 0 -60000 -448730 -247509 0 -488182 0 0 285989 -294612 -210633 -3083942 285894 121200 1246659 -50000 -95173 -356616 0 -307 -1343 250000 0 250000 42350 10488 401780 -12921 -12718 -66708 0 0 800000 338900 395302 5924518 0 0 43393 854223 418792 8241683 -20155 11896 79841 104701 0 4705 84546 11896 84546 15000 2116 37081 0 0 0 0 0 806957 0 0 2200 0 0 590250 0 0 46000 6500 30554 481799 0 0 5000 0 0 562000 0 0 145938 0 0 6500 0 0 43046 0 15000 -15000 0 6393 0 0 -5745 -5745 <!--egx--><p style='margin:0in 0in 0pt'><b>Cash and Cash Equivalents</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.</p> <!--egx--><p style='margin:0in 0in 0pt'><b>Per Share Data</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share". Basic earnings per common share (&#147;EPS&#148;) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.</p> <!--egx--><p style='margin:0in 0in 0pt'><b>Fair Value of Financial Instruments</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company's financial instruments consist of cash, accounts payable, accrued liabilities, advances, notes payable, and a loan payable. The carrying amount of these financial instruments approximate fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Our warrant derivative liability and secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The notes payable, loans payable and secured convertible promissory notes have fixed interest rates therefore the Company is exposed to interest rate risk in that they could not benefit from a decrease in market interest rates. In seeking to minimize the risks from interest rate fluctuations, the Company manages exposure through its normal operating and financing activities.</p> <!--egx--><p style='margin:0in 0in 0pt'><b>Deferred Financing Costs</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Deferred financing costs are amortized to interest expense based on the terms of the related debt instruments on a straight- line basis, which approximates the effective interest rate method.</p> <!--egx--><p style='margin:0in 0in 0pt'><b>Accounting for Derivative Instruments</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Accounting standards require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value.&nbsp;&nbsp;A change in the market value of the financial instrument is recognized as a gain or loss in results of operations in the period of change.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <!--egx--><p style='margin:0in 0in 0pt'><b>Stock-based Compensation</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <!--egx--><p style='margin:0in 0in 0pt'><b>Revenue Recognition</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured.</p> <!--egx--><p style='margin:0in 0in 0pt'><b>Exploration and Development Costs</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values.</p> <!--egx--><p style='margin:0in 0in 0pt'><b>Mineral Property Rights</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs would be based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, <i>Impairment or Disposal of Long-Lived Assets</i>.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <!--egx--><p style='margin:0in 0in 0pt'><b>Reclassification</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company reclassified $18,052 of accounts payable, related party as of March 31, 2013 to accounts payable to conform to the current presentation.&nbsp;&nbsp;The reclassification had no effect on the Company&#146;s financial condition, results of operations, or cash flows.</p> <!--egx--><p style='margin:0in 0in 0pt'>On June 12, 2013, the Company recorded a discount on the Note equal to the fair value of the warrant derivative liability and convertible promissory note derivative liability. This discount is amortized using the effective interest rate method over the term of the Note.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:black 1pt solid;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="35%" colspan="2" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:35%;padding-right:0in;background:#cceeff;border-top:black 1pt solid;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Three months ended June 30,</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2013</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2012</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Cash advanced on closing of the initial tranche</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250,000</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Discounts on Note</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Fair value of warrant derivative liability</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(219,372)</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Fair value of convertible promissory note liability</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(45,362)</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Loss on derivative liabilities</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>14,734</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Amortization of discount on Note</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,048</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="20%" style='border-bottom:black 2.25pt double;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,048</p></td> <td valign="top" width="15%" style='border-bottom:black 2.25pt double;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr></table></div> <!--egx--><p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 12, 2013</p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 30, 2013</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.105</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.100</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.24</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.24</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.15%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.41%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>150%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>150%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>60 months</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>59 months</p></td></tr></table></div> <!--egx--><p style='margin:0in 0in 0pt'>The Company&#146;s convertible promissory note derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Conversion Price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.</p> <p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 12, 2013</p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 30, 2013</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.105</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.100</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.23</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.23</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.14%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.15%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>114%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>114%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>13 months</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>12 months</p></td></tr></table></div> 648441 8933332 140000 10000 140000 10000 90673 240673 185000 5000 5000000 50000 140000 2500 0.0800 0.0800 0.0800 2500 2500 3235 3185 571 8992 247850 210000 255000 0.0400 2550000 501075 0.1965 557500 307500 250000 7500 50000 250000 0.23 0.24 250000 0 -219372 0 -45362 0 -4683 0 14048 0 14048 0 0.105 0.100 0.24 0.24 0.0115 0.0141 1.5000 1.5000 0.0000 0.0000 60 59 219372 210178 9195 0.105 0.100 0.23 0.23 0.0014 0.0015 1.1400 1.1400 0.0000 0.0000 13 12 44505 45362 857 0.001 0.001 9000000 9000000 0 0 0.001 0.001 1000000 1000000 375000 375000 0.001 0.001 500000000 500000000 217934132 212468077 217934132 212468077 338900 3240174 0.105 37500 325000 0.115 66666 6000 125000 576571 10000 2400 3000 30000 11000 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Total Convertible promissory note derivative liability Total Convertible promissory note derivative liability Shares of common stock of the Company valued at per share Shares of common stock of the Company valued at per share Note is secured by number of stock Finance charge on note Accumulated deficit as of AccumulatedDeficitAsOf1 Shares issued for mineral property SharesIssuedForMineralProperty1 CASH FLOWS FROM INVESTING ACTIVITIES Increase in prepaid and other assets, Interest expense Common Stock, shares outstanding Note payable - related party Accounts payable - related party LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIESANDSHAREHOLDERSEQUITYAbstract [Abstract] TOTAL ASSETS Shares of common stock for annual mineral lease payment Shares of common stock for annual mineral lease payment Shares of common stock exchanged Shares of common stock exchanged The decrease in the Fair value of the conversion option derivative liability of Convertible promissory notes The decrease in the Fair value of the conversion option derivative liability of Convertible promissory notes Conversion price per share Conversion price per share Company made an unsecured Promissory Note Agreement with William McCreary in the amount Company made an unsecured Promissory Note Agreement with William McCreary in the amount Company entered into a note agreement with Kenneth Azuka, owner and operator of Trinidad Pacifica CompanyEnteredIntoANoteAgreementWithKennethAzukaOwnerAndOperatorOfTrinidadPacifica CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY: RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY Payables issued for mineral properties PayablesIssuedForMineralProperties1 Advances from related party AdvancesFromRelatedParty NET CASH USED IN INVESTING ACTIVITES Proceeds from sale of equipment Net loss for the period Loss on derivative liabilities Exploration costs TOTAL SHAREHOLDERS' EQUITY TOTALSHAREHOLDERSEQUITY Accumulated deficit TOTAL LIABILITIES Equipment under construction, ASSETS Document Fiscal Year Focus Value per share for stock exchanged for services Value per share for stock exchanged for services Preferred stock shares issued and outstanding Preferred stock shares issued and outstanding Expected life in years Expected life in years for the instrument Original issue discount Original issue discount in note Company issued Promissory Notes Advances to pay payroll and social security AdvancesToPayPayrollAndSocialSecurity Warrant derivative liability measurements: Reclassification, Policy Revenue Recognition PROMISSORY NOTES ORGANIZATION AND BUSINESS OF COMPANY: CASH, END OF PERIOD CASHENDOFPERIOD INECREASE (DECREASE) IN CASH CASH FLOWS FROM OPERATING ACTIVITIES BASIC LOSS PER COMMON SHARE Expenses REVENUES Common Stock, par value Series A Convertible Preferred Stock, shares issued SeriesAConvertiblePreferredStockSharesIssued Secured convertible promissory note derivative liability Secured convertible promissory note derivative liability Entity Well-known Seasoned Issuer Accumulated Deficit [Member] Series A Preferred Stock Authorized Shares The maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws. 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Conversion Price per share as per agreement Conversion Price per share as per agreement Interest Rate on Promissory note Interest Rate on Promissory note Additional advance was disbursed to Kenneth Azuka AdditionalAdvanceWasDisbursedToKennethAzuka Per Share Data CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY Disclosure for derivative liabilities on convertible promissory notes GOING CONCERN: Supplemental disclosure of non-cash investing and financing activities: Taxes paid Payment on advances from related party PaymentOnAdvancesFromRelatedParty General and administrative Series A Convertible Preferred Stock, shares outstanding SeriesAConvertiblePreferredStockSharesOutstanding unamortized debt discount of Secured convertible promissory note The amount of debt discount that was originally recognized at the issuance of the Secured convertible promissory note that has yet to be amortized. TOTAL CURRENT LIABILITIES TOTAL FIXED ASSETS Prepaid and other assets Document Fiscal Period Focus Fair value of the conversion option derivative liability Fair value of the conversion option derivative liability Company's convertible promissory note derivative liability: Mineral Property Rights Exploration and Development Costs SHAREHOLDERS' EQUITY (DEFICIT) NOTES PAYABLE - RELATED PARTY: Shares issued for notes payable SharesIssuedForNotesPayable NET CASH PROVIDED BY FINANCING ACTIVITIES Total revenues Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. 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Conversion price, Conversion price, Fair value of convertible promissory note liability Fair value of convertible promissory note liability Shares of common stock of the Company valued at Shares of common stock of the Company valued at Cash advances to the Company by Paul D. Thompson is the sole director and officer CashAdvancesToTheCompanyPaulDThompsonIsTheSoleDirectorAndOfficer Company entered into an unsecured promissory note agreement with William H. Brinker in the amount Company entered into an unsecured promissory note agreement with William H. 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As shown in the accompanying consolidated financial statements, the Company has a limited operating history and limited funds and has an accumulated deficit of $648,441 and an accumulated deficit since re-entry into the exploration stage of $8,933,332 at June 30, 2013. These factors, among others, may indicate that the Company may not be able to continue as a going concern.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company is dependent upon outside financing to continue operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management&#146;s plans to raise necessary funds through a private placement of its common stock to satisfy the capital requirements of the Company&#146;s business plan. There is no assurance that the Company will be able to raise the necessary funds, or that if it is successful in raising the necessary funds, that the Company will successfully execute its business plan.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The financial statements do not include any adjustments relating to the recoverability and classification of assets and/or liabilities that might be necessary should the Company be unable to continue as a going concern. The continuation as a going concern is dependent upon the ability of the Company to meet our obligations on a timely basis, and, ultimately to attain profitability.</p>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1524-128463 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph F4 -Subparagraph e -Appendix F Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141 -Paragraph 51, 52 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph 67-73 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 88-16 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1500-128463 false0falseGOING CONCERNUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_DisclosureGOINGCONCERN12 XML 11 R6.xml IDEA: ORGANIZATION AND BUSINESS OF COMPANY 2.4.0.8000060 - Disclosure - ORGANIZATION AND BUSINESS OF COMPANYtruefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_N00000ORGANIZATIONANDBUSINESSOFCOMPANYAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>1.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>ORGANIZATION AND BUSINESS OF COMPANY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Mexus Gold US (the &#147;Company&#148;) was originally incorporated under the laws of the State of Colorado on June 22, 1990, as U.S.A. Connection, Inc.&nbsp;&nbsp;On October 28, 2005, the Company changed its&#146; name to Action Fashions, Ltd. On September 18, 2009, the Company changed its&#146; domicile to Nevada and changed its&#146; name to Mexus Gold US to better reflect the Company&#146;s new planned principle business operations. The Company has a fiscal year end of March 31.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company re-entered the exploration stage as of September 18, 2009, as defined by the Financial Accounting Standard Board (FASB) in FASB ASC 915-10, &#147;Development Stage Entities&#148;. The Company is devoting substantially all of its present efforts to establish a new business and none of its planned principal operations have commenced. All losses accumulated since re-entry into the exploration stage has been considered part of the Company&#146;s exploration stage activities.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company is a mining company engaged in the evaluation, acquisition, exploration and advancement of gold, silver and copper projects in the State of Sonora, Mexico and the Western United States, as well as, the salvage of precious metals from identifiable sources.</p>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 46R -Paragraph 4, 14, 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2134480 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS140-4/FIN46(R)-8 -Paragraph 8, C1, C7 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2122150 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 720 -SubTopic 15 -URI http://asc.fasb.org/subtopic&trid=2122524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228881-111685 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7668296&loc=d3e288-107754 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2197480 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 2-6 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 915 -SubTopic 235 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6472506&loc=d3e38932-110933 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 852 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2209116 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 272 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 94-6 -Paragraph 10 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. false0falseORGANIZATION AND BUSINESS OF COMPANYUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_DisclosureORGANIZATIONANDBUSINESSOFCOMPANY12 XML 12 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY
3 Months Ended
Jun. 30, 2013
CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY:  
CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY

12.  

CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY

 

The Notes are subject to anti-dilution adjustments that allow for the reduction in the Conversion Price in the event the Company subsequently issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.23 a share. The Company accounted for the conversion option in accordance with ASC Topic 815. Accordingly, the Conversion Option is not considered to be solely indexed to the Company’s own stock and, as such, recorded as a liability.

 

The Company’s convertible promissory note derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Conversion Price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.

The inputs into the binomial model are as follows:

 

 

June 12, 2013

June 30, 2013

Closing share price

$0.105

$0.100

Conversion price

$0.23

$0.23

Risk free rate

0.14%

0.15%

Expected volatility

114%

114%

Dividend yield

0%

0%

Expected life

13 months

12 months

 

The fair value of the conversion option derivative liability is $44,505 and $45,362 at June 30, 2013 and June 12, 2013, respectively. The decrease in the fair value of the conversion option derivative liability of $857 is recorded as a gain in the unaudited consolidated condensed statement of operations for the three months ended June 30, 2013.

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 45 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
REVENUES      
Revenues $ 406,387 $ 105,583 $ 1,826,040
Total revenues 406,387 105,583 1,826,040
Expenses      
General and administrative 192,984 174,376 2,960,746
Bad debt expense - related party 247,509 0 488,182
Exploration costs 886,825 143,576 4,997,638
Stock-based expense - consulting services 37,500 0 2,523,786
Impairment of mineral property 0 0 339,664
Loss on sale of equipment 0 27,896 279,317
Gain on settlement of debt 0 0 (283,715)
Total operating expenses 1,364,818 345,848 11,305,618
OTHER INCOME (EXPENSE)      
Interest expense (161,774) (5,717) (277,350)
Foreign exchange loss (17,109) 0 (17,109)
Loss on derivative liabilities (4,683) 0 (4,683)
Total Other Income Expense (183,566) (5,717) (299,142)
NET LOSS (1,141,997) (245,982) (9,778,720)
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST (101,851) 0 (845,388)
NET LOSS ATTRIBUTABLE TO MEXUS GOLD US $ (1,040,146) $ (245,982) $ (8,933,332)
BASIC LOSS PER COMMON SHARE $ 0.00 $ 0.00  
WEIGHTED AVERAGE NUMBER OFCOMMON SHARES OUTSTANDING- BASIC 213,659,127 181,016,800  
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NOTE RECEIVABLE AND RECOVERABLE DISBURSEMENTS - RELATED PARTY
3 Months Ended
Jun. 30, 2013
NOTE RECEIVABLE AND RECOVERABLE DISBURSEMENTS - RELATED PARTY:  
NOTE RECEIVABLE AND RECOVERABLE DISBURSEMENTS - RELATED PARTY

5.  

NOTE RECEIVABLE AND RECOVERABLE DISBURSEMENT - RELATED PARTY

 

On October 29, 2012, the Company entered into a note agreement with Kenneth Azuka, owner and operator of Trinidad Pacifica in the amount of $140,000.  On February 28, 2013, an additional $10,000 advance was disbursed to Kenneth Azuka. The business purpose of the $140,000 note and advance of $10,000 was to pay payroll and social security tax arrears of Trinidad Pacifica that were incurred prior to November 1, 2012. This note is non-interest bearing and is due on July 29, 2013.

 

In addition, the Company paid $90,673 and $247,509 directly to suppliers for expenses incurred by Trinidad Pacifica from November 1, 2012 to March 31, 2013 and April 1, 2013 to June 30, 2013, respectively. The Company recorded these payments as a recoverable disbursement since these expenses were incurred by Trinidad Pacifica prior to November 1, 2012, the date of the Joint Venture Agreement.  The Company plans to recover these disbursements from the other Venturers as it was represented to the Company in the Joint Venture Agreement that there were no outstanding liabilities from activities of the Venturers prior to November 1, 2013 which the Company was responsible.

 

At June 30, 2013, the note, advance and recoverable disbursements were determined to be impaired since the Company believes the debtor does not have the financial capacity to repay these debts at June 30, 2013.  A bad debt expense of $240,673 and $247,509 was recorded in the consolidated statement of operations for the year ended March 31, 2013 (2012 -$0) and the three months ended June 30, 2013 (2012 - $0), respectively. The Company plans to recover these amounts from either Kenneth Azuka, the Joint Venture or from the other Venturers interest in the Joint Venture. The recovery, if any, will be recorded in the consolidated statement of operations in the period collectability is reasonably assured.

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GOING CONCERNS (Details) (USD $)
Jun. 30, 2013
GOING CONCERNS detail  
Accumulated deficit as of $ 648,441
Accumulated deficit since entry into the exploration stage $ 8,933,332
XML 17 R29.xml IDEA: Company issued Promissory Notes (Details) 2.4.0.8000290 - Statement - Company issued Promissory Notes (Details)truefalsefalse1false USDfalsefalse$I130418http://www.sec.gov/CIK0001355677instant2013-04-18T00:00:000001-01-01T00:00:00SharesStandardhttp://www.xbrl.org/2003/instanceshares0PureStandardhttp://www.xbrl.org/2003/instancepure0UsdPerShareDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instanceshares0USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$1true 1fil_CompanyIssuedPromissoryNotesAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2fil_CompanyIssuedPromissoryNotesForCashfil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse255000255000USD$falsetruefalsexbrli:monetaryItemTypemonetaryCompany issued Promissory Notes for cashNo definition available.false23false 2fil_TheNotesBearInterestOfPerAnnumfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truetruefalse0.04000.0400falsefalsefalsenum:percentItemTypepureThe Notes bear interest of per annumNo definition available.false04false 2fil_NotesAreSecuredByAllOfMexusGoldUSSharesOfStockfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse25500002550000falsefalsefalsexbrli:sharesItemTypesharesNotes are secured by all of Mexus Gold US shares of stockNo definition available.false15false 2fil_SharesOfCommonStockOfTheCompanyValuedAtfil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse501075501075USD$falsetruefalsexbrli:monetaryItemTypemonetaryShares of common stock of the Company valued atNo definition available.false26false 2fil_SharesOfCommonStockOfTheCompanyValuedAtPerSharefil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse0.19650.1965USD$falsetruefalsenum:perShareItemTypedecimalShares of common stock of the Company valued at per shareNo definition available.false3falseCompany issued Promissory Notes (Details) (USD $)NoRoundingNoRoundingNoRoundingUnKnowntruefalsefalseNoteshttp://www.mexusgold.com/20130630/role/idr_CompanyIssuedPromissoryNotesDetails16 XML 18 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
SHAREHOLDERS' EQUITY (DEFICIT)
3 Months Ended
Jun. 30, 2013
SHAREHOLDERS' EQUITY (DEFICIT):  
SHAREHOLDERS' EQUITY (DEFICIT)

13.  

STOCKHOLDERS’ EQUITY

 

The stockholders’ equity of the Company comprises the following classes of capital stock as of June 30, 2013 and March 31, 2013:

 

Preferred Stock, $.001 par value per share; 9,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2013 and March 31, 2013, respectively.

 

Series A Convertible Preferred Stock (‘Series A Preferred Stock”), $.001 par value share; 1,000,000 shares authorized: 375,000 shares issued and outstanding at June 30, 2013 and March 31, 2013.

 

On August 22, 2011, the Board of Directors designated 1,000,000 shares of its Preferred Stock, $0.001 par value as Series A Preferred Stock.  Holders of Series A Preferred Stock may convert one share of Series A Preferred Stock into one share of Common Stock.  Holders of Series A Preferred Stock have the number of votes determined by multiplying (a) the number of Series A Preferred Stock held by such holder, (b) the number of issued and outstanding Series A Preferred Stock and Common Stock on a fully diluted basis, and (c) 0.000006.

 

Common Stock, par value of $0.001 per share; 500,000,000 shares authorized: 217,934,132 and 212,468,077 shares issued and outstanding at June 30, 2013 and March 31, 2013, respectively. Holders of Common Stock have one vote per share of Common Stock held.

 

On May 3, 2013, the Company issued 880,714 shares of common stock to satisfy obligations under share subscription agreements for $137,250 in cash included in share subscriptions payable.

 

On May 21, 2013, the Company issued 823,332 shares of common stock to satisfy obligations under share subscription agreements for $125,250 in cash included in share subscriptions payable.

 

On May 22, 2013, the Company issued 2,550,000 shares of common stock to satisfy obligations under share subscription agreements for $501,075 in financing fees included in share subscriptions payable.

 

On June 17, 2013, the Company issued 387,500 shares of common stock to satisfy obligations under share subscription agreements for $27,000 in cash included in share subscriptions payable.

 

On June 26, 2013, the Company issued 824,509 shares of common stock to satisfy obligations under share subscription agreements for $43,000 in cash and $34,500 in services included in share subscriptions payable.

 

Common Stock Payable

 

During the three months ended June 30, 2013, the Company received $338,900 in cash in exchange for subscriptions payable of 3,240,174 shares of common stock ($0.105 per share).

 

During the three months ended June 30, 2013, the Company issued subscriptions payable for 325,000 shares of common stock for services valued at $37,500 ($0.115 per share).

XML 19 R34.xml IDEA: CAPITAL STOCKS (Details) 2.4.0.8000340 - Statement - CAPITAL STOCKS (Details)truefalsefalse1false USDfalsefalse$E13Q2http://www.sec.gov/CIK0001355677instant2013-06-30T00:00:000001-01-01T00:00:00SharesStandardhttp://www.xbrl.org/2003/instanceshares0UsdPerShareDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instanceshares0USDUSD$2false USDfalsefalse$E13Q1http://www.sec.gov/CIK0001355677instant2013-03-31T00:00:000001-01-01T00:00:00SharesStandardhttp://www.xbrl.org/2003/instanceshares0UsdPerShareDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instanceshares0USDUSD$1true 1fil_CAPITALSTOCKSAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2fil_PreferredStockParValuePerSharefil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse0.0010.001USD$falsetruefalse2truefalsefalse0.0010.001USD$falsetruefalsenum:perShareItemTypedecimalFace amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share.No definition available.false33false 2fil_PreferredStockAuthorizedSharesfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse90000009000000falsefalsefalse2truefalsefalse90000009000000falsefalsefalsexbrli:sharesItemTypesharesThe maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws.No definition available.false14false 2fil_PreferredStockSharesIssuedAndOutstandingfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse00falsefalsefalse2truefalsefalse00falsefalsefalsexbrli:sharesItemTypesharesPreferred stock shares issued and outstandingNo definition available.false15false 2fil_SeriesAPreferredStockParValuePerSharefil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse0.0010.001USD$falsetruefalse2truefalsefalse0.0010.001USD$falsetruefalsenum:perShareItemTypedecimalFace amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share.No definition available.false36false 2fil_SeriesAPreferredStockAuthorizedSharesfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse10000001000000falsefalsefalse2truefalsefalse10000001000000falsefalsefalsexbrli:sharesItemTypesharesThe maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws.No definition available.false17false 2fil_SeriesAPreferredStockSharesIssuedAndOutstandingfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse375000375000falsefalsefalse2truefalsefalse375000375000falsefalsefalsexbrli:sharesItemTypesharesSeries A Preferred stock shares issued and outstandingNo definition available.false18false 2fil_CommonStockParValuePerSharefil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse0.0010.001USD$falsetruefalse2truefalsefalse0.0010.001USD$falsetruefalsenum:perShareItemTypedecimalFace amount or stated value of common stock per share; generally not indicative of the fair market value per share.No definition available.false39false 2fil_CommonStockAuthorizedSharesfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse500000000500000000falsefalsefalse2truefalsefalse500000000500000000falsefalsefalsexbrli:sharesItemTypesharesThe maximum number of common shares permitted to be issued by an entity's charter and bylaws.No definition available.false110false 2fil_CommonStockIssuedSharesfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse217934132217934132falsefalsefalse2truefalsefalse212468077212468077falsefalsefalsexbrli:sharesItemTypesharesTotal number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). 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RELATED PARTY (Details) 2.4.0.8000250 - Statement - NOTE RECEIVABLE AND RECOVERABLE DISBURSEMENTS - RELATED PARTY (Details)truefalsefalse1false USDfalsefalse$E13Q1http://www.sec.gov/CIK0001355677instant2013-03-31T00:00:000001-01-01T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$2false USDfalsefalse$I130228http://www.sec.gov/CIK0001355677instant2013-02-28T00:00:000001-01-01T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$3false USDfalsefalse$I121101http://www.sec.gov/CIK0001355677instant2012-11-01T00:00:000001-01-01T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$4false USDfalsefalse$I121029http://www.sec.gov/CIK0001355677instant2012-10-29T00:00:000001-01-01T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$1true 1fil_NoteReceivableAndRelatedPartyAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2fil_CompanyEnteredIntoANoteAgreementWithKennethAzukaOwnerAndOperatorOfTrinidadPacificafil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalse3falsefalsefalse00falsefalsefalse4truefalsefalse140000140000USD$falsetruefalsexbrli:monetaryItemTypemonetaryCompanyEnteredIntoANoteAgreementWithKennethAzukaOwnerAndOperatorOfTrinidadPacificaNo definition available.false23false 2fil_AdditionalAdvanceWasDisbursedToKennethAzukafil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalse3falsefalsefalse00falsefalsefalse4truefalsefalse1000010000falsefalsefalsexbrli:monetaryItemTypemonetaryAdditionalAdvanceWasDisbursedToKennethAzukaNo definition available.false24false 2fil_TheBusinessPurposeOfTheNotefil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2truefalsefalse140000140000falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryTheBusinessPurposeOfTheNoteNo definition available.false25false 2fil_AdvancesToPayPayrollAndSocialSecurityfil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2truefalsefalse1000010000falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryAdvancesToPayPayrollAndSocialSecurityNo definition available.false26false 2fil_CompanyPaidDirectlyToSuppliersfil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalse3truefalsefalse9067390673falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryCompanyPaidDirectlyToSuppliersNo definition available.false27false 2fil_NoteAdvanceAndRecoverableDisbursementBadDebtExpensefil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse240673240673USD$falsetruefalse2falsefalsefalse00falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryCompanyPaidDirectlyToSuppliersNo definition available.false2falseNOTE RECEIVABLE AND RECOVERABLE DISBURSEMENTS - RELATED PARTY (Details) (USD $)NoRoundingUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_NOTERECEIVABLEANDRECOVERABLEDISBURSEMENTSRELATEDPARTYDetails47 XML 22 R27.htm IDEA: XBRL DOCUMENT v2.4.0.8
Defaulted Senior Notes (Details) (USD $)
Jun. 30, 2013
Mar. 31, 2013
Feb. 16, 2010
Defaulted Senior Notes      
Company made an unsecured Promissory Note Agreement with William McCreary in the amount     $ 2,500
Interest Rate on Promissory note 8.00% 8.00% 8.00%
Balances on this note totalled as of 2,500 2,500  
Accrued interest included in accounts payable and accrued liabilities $ 3,235 $ 3,185  
XML 23 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Unsecured promissory note agreement (Details) (USD $)
Jun. 30, 2013
Jan. 08, 2013
Unsecured promissory note agreement    
Company entered into an unsecured promissory note agreement with William H. Brinker in the amount   $ 185,000
Finance charge on note   5,000
Note is secured by number of stock   5,000,000
Company repaid in principal amount 50,000  
Amount remains outstanding $ 140,000  
XML 24 R34.htm IDEA: XBRL DOCUMENT v2.4.0.8
CAPITAL STOCKS (Details) (USD $)
Jun. 30, 2013
Mar. 31, 2013
CAPITAL STOCKS:    
Preferred Stock par value per share $ 0.001 $ 0.001
Preferred Stock Authorized Shares 9,000,000 9,000,000
Preferred stock shares issued and outstanding 0 0
Series A Preferred Stock par value per share $ 0.001 $ 0.001
Series A Preferred Stock Authorized Shares 1,000,000 1,000,000
Series A Preferred stock shares issued and outstanding 375,000 375,000
Common Stock par value per share. $ 0.001 $ 0.001
Common Stock Authorized Shares. 500,000,000 500,000,000
Common Stock issued shares. 217,934,132 212,468,077
Common Stock outstanding shares. 217,934,132 212,468,077
XML 25 R19.xml IDEA: SUBSEQUENT EVENTS 2.4.0.8000190 - Disclosure - SUBSEQUENT EVENTStruefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_SUBSEQUENTEVENTSAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_SubsequentEventsTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>14.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>SUBSEQUENT EVENTS</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On July 16, 2013, the Company issued 66,666 shares of common stock to satisfy obligations under share subscription agreements for $6,000 in cash included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On July 17, 2013, the Company issued 125,000 shares of common stock to satisfy obligations under share subscription agreements for $10,000 in cash included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On July 22, 2013, the Company issued 576,571 shares of common stock to satisfy obligations under share subscription agreements for $2,400 in cash and $3,000 in services, included in share subscriptions payable, and $30,000 in cash and $11,000 in services for subscriptions agreements entered into in July 2013.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On July 31, 2013, the Company issued 1,014,285 shares of common for $71,000 in cash and 150,000 shares of common stock for annual mineral lease payment valued at $15,150 ($0.101 per share).</p> <p style='margin:0in 0in 0pt'>&nbsp;</p>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.No definition available.false0falseSUBSEQUENT EVENTSUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_DisclosureSUBSEQUENTEVENTS12 XML 26 R31.htm IDEA: XBRL DOCUMENT v2.4.0.8
Convertible promissory note derivative liability (Details) (USD $)
3 Months Ended 45 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Convertible promissory note derivative liability Details      
Cash advanced on closing of the initial tranche $ 250,000 $ 0 $ 250,000
Fair value of warrant derivative liability (219,372) 0 (219,372)
Fair value of convertible promissory note liability (45,362) 0 (45,362)
Loss on derivative liabilities (4,683) 0 (4,683)
Amortization of discount on Note 14,048 0 14,048
Total Convertible promissory note derivative liability $ 14,048 $ 0 $ 14,048
XML 27 R9.xml IDEA: RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY 2.4.0.8000090 - Disclosure - RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANYtruefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_RECENTACCOUNTINGPRONOUNCEMENTSAFFECTINGTHECOMPANYAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_NewAccountingPronouncementsPolicyPolicyTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>4.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="19" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:14.2pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>There have been no recent accounting pronouncements or changes in accounting pronouncements that impacted the first quarter of fiscal 2014, or which are expected to impact future periods that were not already adopted and disclosed in prior periods.</p></td></tr></table></div>falsefalsefalsenonnum:textBlockItemTypenaDisclosure of the adoption of new accounting pronouncements that may impact the entity's financial reporting.No definition available.false0falseRECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANYUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_DisclosureRECENTACCOUNTINGPRONOUNCEMENTSAFFECTINGTHECOMPANY12 XML 28 R12.xml IDEA: NOTES PAYABLE 2.4.0.8000120 - Disclosure - NOTES PAYABLEtruefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_N11NOTESPAYABLEAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_MortgageNotesPayableDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>7.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>NOTES PAYABLE</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On January 8, 2013, the Company entered into an unsecured promissory note agreement with William H. Brinker in the amount of $185,000.&nbsp;&nbsp;The note is due on demand upon the occurrence of certain events and at the discretion of the note holder. A finance charge of $5,000 is due on or before March 31, 2013. The note is secured by 5,000,000 shares of common stock of Mexus Gold US pledged by the Company and certain mining equipment include a radial stacker and cone crushing plant.&nbsp;&nbsp;On April 1, 2013, the Company repaid $50,000 in principal and $140,000 remains outstanding at June 30, 2013 ($190,000 &#150; March 31, 2013).</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>In June 2013, the Company received advances totalling 400,000 Mexican Pesos ($30,894 USD). These advances are non-interest bearing, unsecured and have no specific terms of repayment.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Defaulted Senior Notes</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On February 16, 2010, the Company made an unsecured Promissory Note Agreement with William McCreary in the amount of $2,500 at eight percent interest and due on demand or no later than September 1, 2010. The Company has not made the scheduled payments and is in default on this note as of December 31, 2011. The default rate on the note is eight percent.&nbsp;&nbsp;At June 30, 2013 and March 31, 2013, the balances on this note totalled $2,500 and $2,500, respectively.&nbsp;&nbsp;At June 30, 2013 and March 31, 2013, accrued interest of $3,235 and $3,185 on this note have been included in accounts payable and accrued liabilities, respectively.</p>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for mortgage notes payable.No definition available.false0falseNOTES PAYABLEUnKnownUnKnownUnKnownUnKnowntruefalsefalseNoteshttp://www.mexusgold.com/20130630/role/idr_DisclosureNOTESPAYABLE12 XML 29 R25.htm IDEA: XBRL DOCUMENT v2.4.0.8
NOTE RECEIVABLE AND RECOVERABLE DISBURSEMENTS - RELATED PARTY (Details) (USD $)
Mar. 31, 2013
Feb. 28, 2013
Nov. 01, 2012
Oct. 29, 2012
Note Receivable and Related party        
Company entered into a note agreement with Kenneth Azuka, owner and operator of Trinidad Pacifica       $ 140,000
Additional advance was disbursed to Kenneth Azuka       10,000
The business purpose of the note   140,000    
Advances to pay payroll and social security   10,000    
Company paid directly to suppliers     90,673  
Note advance and recoverable disbursement-bad debt expense $ 240,673      
XML 30 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
ORGANIZATION AND BUSINESS OF COMPANY
3 Months Ended
Jun. 30, 2013
ORGANIZATION AND BUSINESS OF COMPANY:  
ORGANIZATION AND BUSINESS OF COMPANY

1.  

ORGANIZATION AND BUSINESS OF COMPANY

 

Mexus Gold US (the “Company”) was originally incorporated under the laws of the State of Colorado on June 22, 1990, as U.S.A. Connection, Inc.  On October 28, 2005, the Company changed its’ name to Action Fashions, Ltd. On September 18, 2009, the Company changed its’ domicile to Nevada and changed its’ name to Mexus Gold US to better reflect the Company’s new planned principle business operations. The Company has a fiscal year end of March 31.

 

The Company re-entered the exploration stage as of September 18, 2009, as defined by the Financial Accounting Standard Board (FASB) in FASB ASC 915-10, “Development Stage Entities”. The Company is devoting substantially all of its present efforts to establish a new business and none of its planned principal operations have commenced. All losses accumulated since re-entry into the exploration stage has been considered part of the Company’s exploration stage activities.

 

The Company is a mining company engaged in the evaluation, acquisition, exploration and advancement of gold, silver and copper projects in the State of Sonora, Mexico and the Western United States, as well as, the salvage of precious metals from identifiable sources.

XML 31 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
GOING CONCERN
3 Months Ended
Jun. 30, 2013
GOING CONCERN:  
GOING CONCERN

3.

GOING CONCERN

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company has a limited operating history and limited funds and has an accumulated deficit of $648,441 and an accumulated deficit since re-entry into the exploration stage of $8,933,332 at June 30, 2013. These factors, among others, may indicate that the Company may not be able to continue as a going concern.

 

The Company is dependent upon outside financing to continue operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management’s plans to raise necessary funds through a private placement of its common stock to satisfy the capital requirements of the Company’s business plan. There is no assurance that the Company will be able to raise the necessary funds, or that if it is successful in raising the necessary funds, that the Company will successfully execute its business plan.

 

The financial statements do not include any adjustments relating to the recoverability and classification of assets and/or liabilities that might be necessary should the Company be unable to continue as a going concern. The continuation as a going concern is dependent upon the ability of the Company to meet our obligations on a timely basis, and, ultimately to attain profitability.

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ACCOUNTS PAYABLE - RELATED PARTIES:  
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During the three months ended June 30, 2013 and 2012, the Company incurred rent expense to Paul D. Thompson, the sole director and officer of the Company, of $11,400 and $11,400, respectively.  At June 30, 2013 and March 31, 2013, $19,633 and $12,863 for this obligation is outstanding, respectively.

XML 34 R14.xml IDEA: PROMISSORY NOTES 2.4.0.8000140 - Disclosure - PROMISSORY NOTEStruefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_PROMISSORYNOTESAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_LoansNotesTradeAndOtherReceivablesExcludingAllowanceForCreditLossesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>9.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>PROMISSORY NOTES</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On April 18, 2013, the Company issued Promissory Notes for $255,000 in cash. 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RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY
3 Months Ended
Jun. 30, 2013
RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY:  
RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY

4.  

RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY

 

 

There have been no recent accounting pronouncements or changes in accounting pronouncements that impacted the first quarter of fiscal 2014, or which are expected to impact future periods that were not already adopted and disclosed in prior periods.

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NOTES PAYABLE - RELATED PARTY (Details) (USD $)
Jun. 30, 2013
Mar. 31, 2013
NOTES PAYABLE - RELATED PARTY CONSISTS OF THE FOLLOWING:    
Cash advances to the Company by Paul D. Thompson is the sole director and officer $ 571 $ 8,992
Notes payable due to Taurus Gold Inc. totalled $ 247,850 $ 210,000
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Warrant derivative liability measured at fair value (Details) (USD $)
Jun. 30, 2013
Jun. 12, 2013
Warrant derivative liability measured at fair value    
Closing share price $ 0.100 $ 0.105
Conversion price per share $ 0.24 $ 0.24
Risk free rate 1.41% 1.15%
Expected volatility rate 150.00% 150.00%
Dividend yield rate 0.00% 0.00%
Expected life in years 59 60
Fair value of the conversion option derivative liability $ 210,178 $ 219,372
Decrease in the fair value of the conversion option derivative liability $ 9,195  
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CONSOLIDATED BALANCE SHEETS PARENTHETICALS (USD $)
Jun. 30, 2013
Mar. 31, 2013
Parentheticals    
unamortized debt discount of Secured convertible promissory note $ 293,452 $ 0
Preferred Stock, par value $ 0.001 $ 0.001
Preferred Stock, shares authorized 9,000,000 9,000,000
Series A Convertible Preferred Stock, par value $ 0.001 $ 0.001
Series A Convertible Preferred Stock, shares authorized 1,000,000 1,000,000
Series A Convertible Preferred Stock, shares issued 375,000 375,000
Series A Convertible Preferred Stock, shares outstanding 375,000 375,000
Common Stock, par value $ 0.001 $ 0.001
Common Stock, shares authorized 500,000,000 500,000,000
Common Stock, shares issued 217,934,132 212,468,077
Common Stock, shares outstanding 217,934,132 212,468,077
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PROMISSORY NOTES
3 Months Ended
Jun. 30, 2013
PROMISSORY NOTES:  
PROMISSORY NOTES

9.  

PROMISSORY NOTES

 

On April 18, 2013, the Company issued Promissory Notes for $255,000 in cash. The Notes bear interest of 4% per annum and are due on December 31, 2013. The Notes are secured by all of Mexus Gold US shares of stock in Mexus Resources S.A. de C.V. and a personal guarantee of Paul D. Thompson. In addition, a fee of 2,550,000 shares of common stock of the Company valued at $501,075 ($0.1965 per share) was paid to the Note holders on April 18, 2013.  These financing fees are capitalized in the consolidated balance sheet as deferred finance expense and are being amortized on a straight-line basis, which approximates the effective interest rate method, as interest expense over the life of the Promissory Notes.

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This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. false07false 2us-gaap_ShareBasedCompensationOptionAndIncentivePlansPolicyus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><p style='margin:0in 0in 0pt'><b>Stock-based Compensation</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p>falsefalsefalsenonnum:textBlockItemTypenaDisclosure of accounting policy for stock option and stock incentive plans. This disclosure may include (1) the types of stock option or incentive plans sponsored by the entity (2) the groups that participate in (or are covered by) each plan (3) significant plan provisions and (4) how stock compensation is measured, and the methodologies and significant assumptions used to determine that measurement.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph A240 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b),(f) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2228939 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 06-11 -Paragraph 7 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. false08false 2us-gaap_RevenueRecognitionPolicyTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><p style='margin:0in 0in 0pt'><b>Revenue Recognition</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured.</p>falsefalsefalsenonnum:textBlockItemTypenaDisclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18726-107790 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 13 -Section B -Paragraph Question 1 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 605 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 13.B.Q1) -URI http://asc.fasb.org/extlink&oid=6600647&loc=d3e214044-122780 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 22 -Paragraph 8, 12, 13 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18823-107790 false09false 2us-gaap_ExploratoryDrillingCostsCapitalizationAndImpairmentPolicyus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><p style='margin:0in 0in 0pt'><b>Exploration and Development Costs</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values.</p>falsefalsefalsenonnum:textBlockItemTypenaDisclosure of accounting policy for capitalization of exploratory drilling costs, including the criteria management applies in evaluating whether costs incurred meet the criteria for initial capitalization, continued capitalization, impairment, and how often such evaluations are made.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 360 -URI http://asc.fasb.org/subtopic&trid=2145654 false010false 2us-gaap_PropertyPlantAndEquipmentImpairmentus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><p style='margin:0in 0in 0pt'><b>Mineral Property Rights</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs would be based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, <i>Impairment or Disposal of Long-Lived Assets</i>.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p>falsefalsefalsenonnum:textBlockItemTypenaDisclosure of accounting policy for assessing and recognizing impairments of its property, plant and equipment.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -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 360 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2155824 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 7 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. false011false 2us-gaap_PriorPeriodReclassificationAdjustmentDescriptionus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><p style='margin:0in 0in 0pt'><b>Reclassification</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company reclassified $18,052 of accounts payable, related party as of March 31, 2013 to accounts payable to conform to the current presentation.&nbsp;&nbsp;The reclassification had no effect on the Company&#146;s financial condition, results of operations, or cash flows.</p>falsefalsefalsenonnum:textBlockItemTypenaDisclosure of accounting policy for reclassifications that affects the comparability of the financial statements.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755 false0falseACCOUNTING POLICIES(POLICIES)UnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_DisclosureACCOUNTINGPOLICIESPOLICIES111 XML 48 R5.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
3 Months Ended 45 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss for the period $ (1,141,997) $ (245,982) $ (9,778,720)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 85,684 57,376 707,566
Loss on sale of equipment; 0 0 279,317
Loss on settlement of accounts payable 0 0 11,000
Gain on settlement of debt, 0 0 (283,715)
Stock-based compensation; 37,500 27,896 2,495,316
Accrued interest expense 161,774 0 223,405
Impairment of equipment included in exploration costs 7,500 0 7,500
Impairment of mineral property 0 0 339,664
Bad debt expense - related party, 247,509 0 488,182
Loss on derivatives 4,683 0 4,683
Changes in operating assets and liabilities:      
Increase in prepaid and other assets, (1,573) 2,971 (26,592)
Increase in accounts payable and accrued liabilities, 19,154 (38,524) 454,494
NET CASH USED IN OPERTATING ACTIVITIES (579,766) (196,263) (5,077,900)
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of equipment (1,200) (147,854) (1,965,508)
Purchase of equipment under construction (45,903) (2,779) (467,511)
Purchase of mineral properties 0 (60,000) (448,730)
Issuance of notes receivable (247,509) 0 (488,182)
Proceeds from sale of equipment 0 0 285,989
NET CASH USED IN INVESTING ACTIVITES (294,612) (210,633) (3,083,942)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from issuance of notes payable 285,894 121,200 1,246,659
Payments on notes payable (50,000) (95,173) (356,616)
Payments on loans payable 0 (307) (1,343)
Proceeds from issuance of convertible promissory notes 250,000 0 250,000
Advances from related party 42,350 10,488 401,780
Payment on advances from related party (12,921) (12,718) (66,708)
Advance from Powercom Services Inc., 0 0 800,000
Proceeds from issuance of common stock 338,900 395,302 5,924,518
Share subscriptions payable 0 0 43,393
NET CASH PROVIDED BY FINANCING ACTIVITIES 854,223 418,792 8,241,683
INECREASE (DECREASE) IN CASH (20,155) 11,896 79,841
CASH, BEGINNING OF PERIOD 104,701 0 4,705
CASH, END OF PERIOD 84,546 11,896 84,546
Supplemental disclosure of cash flow information:      
Interest paid 15,000 2,116 37,081
Taxes paid 0 0 0
Supplemental disclosure of non-cash investing and financing activities:      
Shares issued for notes payable 0 0 806,957
Shares issued for advances - related party 0 0 2,200
Shares issued for accounts payable, including related party 0 0 590,250
Deferred gain on equipment 0 0 46,000
Shares issued and unissued for equipment purchase 6,500 30,554 481,799
Shares issued for equipment under construction 0 0 5,000
Shares issued for mineral property 0 0 562,000
Asset relinquished to settle debt 0 0 145,938
Asset given as settlement of payable 0 0 6,500
Loan for equipment 0 0 43,046
Payables issued for mineral properties 0 15,000 (15,000)
Payables issued for equipment 0 6,393 0
Subscription payable settled by related party $ 0 $ (5,745) $ (5,745)
XML 49 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONSOLIDATED BALANCE SHEETS (USD $)
Jun. 30, 2013
Mar. 31, 2013
CURRENT ASSETS    
Cash $ 84,546 $ 104,701
Prepaid and other assets 26,592 25,019
TOTAL CURRENT ASSETS 111,138 129,720
FIXED ASSETS    
Equipment, net of accumulated depreciation 1,862,830 1,955,813
TOTAL FIXED ASSETS 1,862,830 1,955,813
OTHER ASSETS    
Deferred finance expense 373,061 0
Equipment under construction, 105,977 52,575
Property costs 1,233,483 1,233,483
TOTAL OTHER ASSETS 1,712,521 1,286,058
TOTAL ASSETS 3,686,489 3,371,591
CURRENT LIABILITIES    
Accounts payable and accrued liabilities 100,846 68,750
Accounts payable - related party 19,633 12,863
Notes payable, 173,394 192,500
Note payable - related party 248,421 218,992
Loan payable 255,000 0
Secured convertible promissory note derivative liability 44,505 0
Warrant derivative liability 210,178 0
Secured convertible promissory note (net of unamortized debt discount $293,452) 14,048 0
TOTAL CURRENT LIABILITIES 1,066,025 493,105
TOTAL LIABILITIES 1,066,025 493,105
SHAREHOLDERS' EQUITY    
Capital stock authorized 9,000,000 shares of preferred stock, $0.001 par value per share, nil issued and outstanding 0 0
Capital stock authorized 1,000,000 shares of Series A Convertible Preferred Stock, $0.001 par value per share 375,000 shares of Series A Convertible Preferred Stock (375,000 - March 31, 2012) 375 375
Capital stock authorized 500,000,000 shares of common stock, $0.001 par value per share Issued and outstanding 217,934,132 shares of common stock (212,468,077 - March 31, 2013) 217,934 212,468
Additional paid-in capital 12,129,380 11,266,771
Share subscription payable 433,269 417,369
Accumulated deficit (648,441) (648,441)
Accumulated deficit during the exploration stage (8,933,332) (7,893,186)
Total Mexus Gold Shareholders' Equity 3,199,185 3,355,356
Non-controlling interest (578,721) (476,870)
TOTAL SHAREHOLDERS' EQUITY 2,620,464 2,878,486
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,686,489 $ 337,159
XML 50 R7.xml IDEA: BASIS OF PREPARATION 2.4.0.8000070 - Disclosure - BASIS OF PREPARATIONtruefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_BASISOFPREPARATIONAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_SignificantAccountingPoliciesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>2.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>BASIS OF PREPARATION</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q, the consolidated financial statements, footnote disclosures and other information normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The consolidated financial statements contained in this report are unaudited but, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the consolidated financial statements.&nbsp;&nbsp;All significant inter-company accounts and transactions have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. The consolidated balance sheet at March 31, 2013 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management reviews these estimates and assumptions on an ongoing basis using currently available information. Actual results could differ from those estimates.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Cash and Cash Equivalents</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Per Share Data</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share". Basic earnings per common share (&#147;EPS&#148;) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Fair Value of Financial Instruments</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company's financial instruments consist of cash, accounts payable, accrued liabilities, advances, notes payable, and a loan payable. The carrying amount of these financial instruments approximate fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Our warrant derivative liability and secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The notes payable, loans payable and secured convertible promissory notes have fixed interest rates therefore the Company is exposed to interest rate risk in that they could not benefit from a decrease in market interest rates. In seeking to minimize the risks from interest rate fluctuations, the Company manages exposure through its normal operating and financing activities.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Deferred Financing Costs</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Deferred financing costs are amortized to interest expense based on the terms of the related debt instruments on a straight- line basis, which approximates the effective interest rate method.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Accounting for Derivative Instruments</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Accounting standards require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value.&nbsp;&nbsp;A change in the market value of the financial instrument is recognized as a gain or loss in results of operations in the period of change.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Stock-based Compensation</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Revenue Recognition</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Exploration and Development Costs</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Mineral Property Rights</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs would be based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, <i>Impairment or Disposal of Long-Lived Assets</i>.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Reclassification</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company reclassified $18,052 of accounts payable, related party as of March 31, 2013 to accounts payable to conform to the current presentation.&nbsp;&nbsp;The reclassification had no effect on the Company&#146;s financial condition, results of operations, or cash flows.</p>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18726-107790 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 22 -Paragraph 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18861-107790 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18743-107790 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18854-107790 false0falseBASIS OF PREPARATIONUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_DisclosureBASISOFPREPARATION12 XML 51 R17.xml IDEA: CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY 2.4.0.8000170 - Disclosure - CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITYtruefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_CONVERTIBLEPROMISSORYNOTEDERIVATIVELIABILITYAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2fil_CONVERTIBLEPROMISSORYNOTEDERIVATIVELIABILITYTextBlockfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="36" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:27pt;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>12.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Notes are subject to anti-dilution adjustments that allow for the reduction in the Conversion Price in the event the Company subsequently issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.23 a share.&nbsp;The Company accounted for the conversion option in accordance with ASC Topic 815. Accordingly, the Conversion Option is not considered to be solely indexed to the Company&#146;s own stock and, as such, recorded as a liability.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company&#146;s convertible promissory note derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Conversion Price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.</p> <p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 12, 2013</p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 30, 2013</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.105</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.100</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.23</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.23</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.14%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.15%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>114%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>114%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>13 months</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>12 months</p></td></tr></table></div> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The fair value of the conversion option derivative liability is $44,505 and $45,362 at June 30, 2013 and June 12, 2013, respectively. The decrease in the fair value of the conversion option derivative liability of $857 is recorded as a gain in the unaudited consolidated condensed statement of operations for the three months ended June 30, 2013.</p>falsefalsefalsenonnum:textBlockItemTypenaDisclosure for derivative liabilities on convertible promissory notesNo definition available.false0falseCONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITYUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_DisclosureCONVERTIBLEPROMISSORYNOTEDERIVATIVELIABILITY12 XML 52 R16.xml IDEA: WARRANT DERIVATIVE LIABILITY 2.4.0.8000160 - Disclosure - WARRANT DERIVATIVE LIABILITYtruefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_WARRANTDERIVATIVELIABILITYAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_DerivativesAndFairValueTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>11.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>WARRANT DERIVATIVE LIABILITY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Warrants are subject to anti-dilution adjustments that allow for the reduction in the Exercise Price in the event the Company subsequently issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.24 a share.&nbsp;The Company accounted for the warrants in accordance with ASC Topic 815. Accordingly, the Warrants are not considered to be solely indexed to the Company&#146;s own stock and, as such, recorded as a liability.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company&#146;s warrant derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Exercise Price contains an anti-dilution adjustment, the probability that the Exercise Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 12, 2013</p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 30, 2013</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.105</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.100</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.24</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.24</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.15%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.41%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>150%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>150%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>60 months</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>59 months</p></td></tr></table></div> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The fair value of the conversion option derivative liability is $219,372 and $210,178 at June 12, 2013 and June 30, 2013, respectively. The decrease in the fair value of the conversion option derivative liability of $9,195 is recorded as a gain in the unaudited consolidated condensed statement of operations for the three months ended June 30, 2013.</p>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for derivatives and fair value of assets and liabilities.No definition available.false0falseWARRANT DERIVATIVE LIABILITYUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_DisclosureWARRANTDERIVATIVELIABILITY12 XML 53 R27.xml IDEA: Defaulted Senior Notes (Details) 2.4.0.8000270 - Statement - Defaulted Senior Notes (Details)truefalsefalse1false USDfalsefalse$E13Q2http://www.sec.gov/CIK0001355677instant2013-06-30T00:00:000001-01-01T00:00:00PureStandardhttp://www.xbrl.org/2003/instancepure0USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$2false USDfalsefalse$E13Q1http://www.sec.gov/CIK0001355677instant2013-03-31T00:00:000001-01-01T00:00:00PureStandardhttp://www.xbrl.org/2003/instancepure0USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$3false USDfalsefalse$I100216http://www.sec.gov/CIK0001355677instant2010-02-16T00:00:000001-01-01T00:00:00PureStandardhttp://www.xbrl.org/2003/instancepure0USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$1true 1fil_DefaultedSeniorNotesAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalse3falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2fil_CompanyMadeAnUnsecuredPromissoryNoteAgreementWithWilliamMcCrearyInTheAmountfil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalse3truefalsefalse25002500USD$falsetruefalsexbrli:monetaryItemTypemonetaryCompany made an unsecured Promissory Note Agreement with William McCreary in the amountNo definition available.false23false 2fil_InterestRateOnPromissoryNotefil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truetruefalse0.08000.0800falsefalsefalse2truetruefalse0.08000.0800falsefalsefalse3truetruefalse0.08000.0800falsefalsefalsenum:percentItemTypepureInterest Rate on Promissory noteNo definition available.false04false 2fil_BalancesOnThisNoteTotalledAsOffil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse25002500falsefalsefalse2truefalsefalse25002500falsefalsefalse3falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryBalances on this note totalled as ofNo definition available.false25false 2fil_AccruedInterestIncludedInAccountsPayableAndAccruedLiabilitiesfil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse32353235USD$falsetruefalse2truefalsefalse31853185USD$falsetruefalse3falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryAccrued interest included in accounts payable and accrued liabilitiesNo definition available.false2falseDefaulted Senior Notes (Details) (USD $)NoRoundingUnKnownUnKnownUnKnowntruefalsefalseNoteshttp://www.mexusgold.com/20130630/role/idr_DefaultedSeniorNotesDetails35 XML 54 R18.xml IDEA: SHAREHOLDERS' EQUITY (DEFICIT) 2.4.0.8000180 - Disclosure - SHAREHOLDERS' EQUITY (DEFICIT)truefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_SHAREHOLDERSEQUITYDEFICITAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_StockholdersEquityNoteDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>13.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>STOCKHOLDERS&#146; EQUITY</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The stockholders&#146; equity of the Company comprises the following classes of capital stock as of June 30, 2013 and March 31, 2013:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Preferred Stock, $.001 par value per share; 9,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2013 and March 31, 2013, respectively.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Series A Convertible Preferred Stock (&#145;Series A Preferred Stock&#148;), $.001 par value share; 1,000,000 shares authorized:&nbsp;375,000&nbsp;shares issued and outstanding at June 30, 2013 and March 31, 2013.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On August 22, 2011, the Board of Directors designated 1,000,000 shares of its Preferred Stock, $0.001 par value as Series A Preferred Stock.&nbsp;&nbsp;Holders of Series A Preferred Stock may convert one share of Series A Preferred Stock into one share of Common Stock.&nbsp;&nbsp;Holders of Series A Preferred Stock have the number of votes determined by multiplying (a) the number of Series A Preferred Stock held by such holder, (b) the number of issued and outstanding Series A Preferred Stock and Common Stock on a fully diluted basis, and (c) 0.000006.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Common Stock, par value of $0.001 per share; 500,000,000 shares authorized: 217,934,132 and 212,468,077 shares issued and outstanding at June 30, 2013 and March 31, 2013, respectively. Holders of Common Stock have one vote per share of Common Stock held.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On May 3, 2013, the Company issued 880,714 shares of common stock to satisfy obligations under share subscription agreements for $137,250 in cash included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On May 21, 2013, the Company issued 823,332 shares of common stock to satisfy obligations under share subscription agreements for $125,250 in cash included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On May 22, 2013, the Company issued 2,550,000 shares of common stock to satisfy obligations under share subscription agreements for $501,075 in financing fees included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On June 17, 2013, the Company issued 387,500 shares of common stock to satisfy obligations under share subscription agreements for $27,000 in cash included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On June 26, 2013, the Company issued 824,509 shares of common stock to satisfy obligations under share subscription agreements for $43,000 in cash and $34,500 in services included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'><b>Common Stock Payable</b></p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2013, the Company received $338,900 in cash in exchange for subscriptions payable of 3,240,174 shares of common stock ($0.105 per share).</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2013, the Company issued subscriptions payable for 325,000 shares of common stock for services valued at $37,500 ($0.115 per share).</p>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). 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Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 false1falseCONSOLIDATED BALANCE SHEETS PARENTHETICALS (USD $)NoRoundingNoRoundingNoRoundingUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_CONSOLIDATEDBALANCESHEETSPARENTHETICALS212 XML 56 R29.htm IDEA: XBRL DOCUMENT v2.4.0.8
Company issued Promissory Notes (Details) (USD $)
Apr. 18, 2013
Company issued Promissory Notes  
Company issued Promissory Notes for cash $ 255,000
The Notes bear interest of per annum 4.00%
Notes are secured by all of Mexus Gold US shares of stock 2,550,000
Shares of common stock of the Company valued at $ 501,075
Shares of common stock of the Company valued at per share $ 0.1965
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Company's convertible promissory note derivative liability (Tables)
3 Months Ended
Jun. 30, 2013
Company's convertible promissory note derivative liability:  
Company's convertible promissory note derivative liability

The Company’s convertible promissory note derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Conversion Price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.

The inputs into the binomial model are as follows:

 

 

June 12, 2013

June 30, 2013

Closing share price

$0.105

$0.100

Conversion price

$0.23

$0.23

Risk free rate

0.14%

0.15%

Expected volatility

114%

114%

Dividend yield

0%

0%

Expected life

13 months

12 months

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Common Stock Payable Transactions (Details) (USD $)
3 Months Ended
Jun. 30, 2013
Common Stock Payable Transactions  
Company received in cash in exchange for subscriptions payable for cash $ 338,900
Shares of common stock exchanged 3,240,174
Value per share received for subscriptions payable $ 0.105
Company received in cash in exchange for subscriptions payable for services $ 37,500
Shares of common stock exchanged for services 325,000
Value per share for stock exchanged for services $ 0.115
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SUBSEQUENT EVENTS TRANSACTIONS (Details) (USD $)
Jul. 31, 2013
Jul. 22, 2013
Jul. 17, 2013
Jul. 16, 2013
SUBSEQUENT EVENTS CONSISTS OF:        
Shares of common stock issued to satisfy obligations under share subscription agreements   576,571 125,000 66,666
Cash included in share subscriptions payable.   $ 2,400 $ 10,000 $ 6,000
Share subscriptions payable in services,   3,000    
Cash included in share subscriptions payable for subscriptions agreements entered into in July 2013   30,000    
Share subscriptions payable in services for subscriptions agreements entered into in July 2013   11,000    
Company issued shares of common stock for cash 1,014,285      
Value of common stock shares issued for cash 71,000      
Shares of common stock for annual mineral lease payment 150,000      
Value of Shares of common stock for annual mineral lease payment $ 15,150      
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NOTES PAYABLE - RELATED PARTY
3 Months Ended
Jun. 30, 2013
NOTES PAYABLE - RELATED PARTY:  
NOTES PAYABLE - RELATED PARTY

8.  

NOTES PAYABLE – RELATED PARTY

 

These notes are unsecured, non-interest bearing and due on demand.  These notes were accumulated through a series of cash advances to the Company and are due to Paul D. Thompson, the sole director and officer of the Company.  At June 30, 2013 and March 31, 2013, Notes payable – related party totalled $571 and $8,992, respectively.

Notes due to Taurus Gold, Inc. are unsecured, non-interest bearing and due on demand.  These notes were accumulated through a series of cash advances to the Company. Taurus Gold, Inc. is controlled by Paul D. Thompson, the sole director and officer of the Company.  As of June 30, 2013 and March 31, 2013, notes payable due to Taurus Gold Inc. totalled $247,850 and $210,000, respectively.

 

XML 63 R21.xml IDEA: Fair value of the warrant derivative liability (Tables) 2.4.0.8000210 - Disclosure - Fair value of the warrant derivative liability (Tables)truefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_FairValueOfTheWarrantDerivativeLiabilityAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_ScheduleOfDerivativeInstrumentsTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><p style='margin:0in 0in 0pt'>On June 12, 2013, the Company recorded a discount on the Note equal to the fair value of the warrant derivative liability and convertible promissory note derivative liability. This discount is amortized using the effective interest rate method over the term of the Note.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:black 1pt solid;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="35%" colspan="2" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:35%;padding-right:0in;background:#cceeff;border-top:black 1pt solid;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Three months ended June 30,</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2013</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2012</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Cash advanced on closing of the initial tranche</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250,000</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Discounts on Note</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Fair value of warrant derivative liability</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(219,372)</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Fair value of convertible promissory note liability</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(45,362)</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Loss on derivative liabilities</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>14,734</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Amortization of discount on Note</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,048</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="20%" style='border-bottom:black 2.25pt double;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,048</p></td> <td valign="top" width="15%" style='border-bottom:black 2.25pt double;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr></table></div>falsefalsefalsenonnum:textBlockItemTypenaTabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)(2)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 false0falseFair value of the warrant derivative liability (Tables)UnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_DisclosureFairValueOfTheWarrantDerivativeLiabilityTables12 XML 64 R30.htm IDEA: XBRL DOCUMENT v2.4.0.8
Secured convertible promissory notes Transactions (details) (USD $)
Jun. 12, 2013
Secured convertible promissory notes Transactions  
Company entered into a Securities Purchase Agreement with Typenex Co-Investment, LLC in the principal amount $ 557,500
Convertible Promissory Notes initial tranche 307,500
Initial tranche in cash 250,000
Typenex legal expenses in the amount of 7,500
Original issue discount 50,000
Additional tranche in cash $ 250,000
Conversion Price per share as per agreement $ 0.23
Exercise Price of the warrants per share $ 0.24
XML 65 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
WARRANT DERIVATIVE LIABILITY
3 Months Ended
Jun. 30, 2013
WARRANT DERIVATIVE LIABILITY:  
WARRANT DERIVATIVE LIABILITY

11.  

WARRANT DERIVATIVE LIABILITY

 

The Warrants are subject to anti-dilution adjustments that allow for the reduction in the Exercise Price in the event the Company subsequently issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.24 a share. The Company accounted for the warrants in accordance with ASC Topic 815. Accordingly, the Warrants are not considered to be solely indexed to the Company’s own stock and, as such, recorded as a liability.

 

The Company’s warrant derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Exercise Price contains an anti-dilution adjustment, the probability that the Exercise Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.

 

The inputs into the binomial model are as follows:

 

 

June 12, 2013

June 30, 2013

Closing share price

$0.105

$0.100

Conversion price

$0.24

$0.24

Risk free rate

1.15%

1.41%

Expected volatility

150%

150%

Dividend yield

0%

0%

Expected life

60 months

59 months

 

The fair value of the conversion option derivative liability is $219,372 and $210,178 at June 12, 2013 and June 30, 2013, respectively. The decrease in the fair value of the conversion option derivative liability of $9,195 is recorded as a gain in the unaudited consolidated condensed statement of operations for the three months ended June 30, 2013.

XML 66 R22.xml IDEA: Warrant derivative liability measurements (Tables) 2.4.0.8000220 - Disclosure - Warrant derivative liability measurements (Tables)truefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_WarrantDerivativeLiabilityMeasurementsAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 12, 2013</p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 30, 2013</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.105</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.100</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.24</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.24</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.15%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.41%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>150%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>150%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>60 months</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>59 months</p></td></tr></table></div>falsefalsefalsenonnum:textBlockItemTypenaTabular disclosure of derivative liabilities at fair value.No definition available.false0falseWarrant derivative liability measurements (Tables)UnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_DisclosureWarrantDerivativeLiabilityMeasurementsTables12 XML 67 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
NOTES PAYABLE
3 Months Ended
Jun. 30, 2013
NOTES PAYABLE:  
NOTES PAYABLE

7.  

NOTES PAYABLE

 

On January 8, 2013, the Company entered into an unsecured promissory note agreement with William H. Brinker in the amount of $185,000.  The note is due on demand upon the occurrence of certain events and at the discretion of the note holder. A finance charge of $5,000 is due on or before March 31, 2013. The note is secured by 5,000,000 shares of common stock of Mexus Gold US pledged by the Company and certain mining equipment include a radial stacker and cone crushing plant.  On April 1, 2013, the Company repaid $50,000 in principal and $140,000 remains outstanding at June 30, 2013 ($190,000 – March 31, 2013).

 

In June 2013, the Company received advances totalling 400,000 Mexican Pesos ($30,894 USD). These advances are non-interest bearing, unsecured and have no specific terms of repayment.

 

Defaulted Senior Notes

 

On February 16, 2010, the Company made an unsecured Promissory Note Agreement with William McCreary in the amount of $2,500 at eight percent interest and due on demand or no later than September 1, 2010. The Company has not made the scheduled payments and is in default on this note as of December 31, 2011. The default rate on the note is eight percent.  At June 30, 2013 and March 31, 2013, the balances on this note totalled $2,500 and $2,500, respectively.  At June 30, 2013 and March 31, 2013, accrued interest of $3,235 and $3,185 on this note have been included in accounts payable and accrued liabilities, respectively.

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BASIS OF PREPARATION
3 Months Ended
Jun. 30, 2013
BASIS OF PREPARATION:  
BASIS OF PREPARATION

2.  

BASIS OF PREPARATION

 

Pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q, the consolidated financial statements, footnote disclosures and other information normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The consolidated financial statements contained in this report are unaudited but, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the consolidated financial statements.  All significant inter-company accounts and transactions have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. The consolidated balance sheet at March 31, 2013 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management reviews these estimates and assumptions on an ongoing basis using currently available information. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

 

Per Share Data

 

Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share". Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.

 

Fair Value of Financial Instruments

 

ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

 

Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.

 

The Company's financial instruments consist of cash, accounts payable, accrued liabilities, advances, notes payable, and a loan payable. The carrying amount of these financial instruments approximate fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

 

Our warrant derivative liability and secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs.

 

Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The notes payable, loans payable and secured convertible promissory notes have fixed interest rates therefore the Company is exposed to interest rate risk in that they could not benefit from a decrease in market interest rates. In seeking to minimize the risks from interest rate fluctuations, the Company manages exposure through its normal operating and financing activities.

 

Deferred Financing Costs

 

Deferred financing costs are amortized to interest expense based on the terms of the related debt instruments on a straight- line basis, which approximates the effective interest rate method.

 

Accounting for Derivative Instruments

 

Accounting standards require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value.  A change in the market value of the financial instrument is recognized as a gain or loss in results of operations in the period of change.

 

Stock-based Compensation

 

The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

 

ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505.

 

Revenue Recognition

 

The Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured.

 

Exploration and Development Costs

 

Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values.

 

Mineral Property Rights

 

Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs would be based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, Impairment or Disposal of Long-Lived Assets.

 

Reclassification

 

The Company reclassified $18,052 of accounts payable, related party as of March 31, 2013 to accounts payable to conform to the current presentation.  The reclassification had no effect on the Company’s financial condition, results of operations, or cash flows.

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Thompson, the sole director and officer of the Company.&nbsp;&nbsp;At June 30, 2013 and March 31, 2013, Notes payable &#150; related party totalled $571 and $8,992, respectively.</p> <p style='margin:0in 0in 0pt'>Notes due to Taurus Gold, Inc. are unsecured, non-interest bearing and due on demand.&nbsp;&nbsp;These notes were accumulated through a series of cash advances to the Company. Taurus Gold, Inc. is controlled by Paul D. Thompson, the sole director and officer of the Company.&nbsp;&nbsp;As of June 30, 2013 and March 31, 2013, notes payable due to Taurus Gold Inc. totalled $247,850 and $210,000, respectively.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for long-term debt.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 false0falseNOTES PAYABLE - RELATED PARTYUnKnownUnKnownUnKnownUnKnowntruefalsefalseNoteshttp://www.mexusgold.com/20130630/role/idr_DisclosureNOTESPAYABLERELATEDPARTY12 XML 71 R23.xml IDEA: Company's convertible promissory note derivative liability (Tables) 2.4.0.8000230 - Disclosure - Company's convertible promissory note derivative liability (Tables)truefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_CompanySConvertiblePromissoryNoteDerivativeLiabilityAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><p style='margin:0in 0in 0pt'>The Company&#146;s convertible promissory note derivative liability has been measured at fair value at June 12, 2013 and June 30, 2013 using a binomial model. Since the Conversion Price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation.</p> <p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 12, 2013</p></td> <td valign="top" width="12%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>June 30, 2013</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.105</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.100</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.23</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.23</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.14%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.15%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>114%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>114%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="22%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:22%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>13 months</p></td> <td valign="top" width="12%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:12%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>12 months</p></td></tr></table></div>falsefalsefalsenonnum:textBlockItemTypenaTabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 205G -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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Convertible promissory note derivative liability measured at fair value (Details) (USD $)
Jun. 30, 2013
Jun. 12, 2013
Convertible promissory note derivative liability measured at fair value    
Closing share price, 0.100 0.105
Conversion price, $ 0.23 $ 0.23
Risk free rate, 0.15% 0.14%
Expected volatility, 114.00% 114.00%
Dividend yield, 0.00% 0.00%
Expected life, 12 13
Fair value of the conversion option derivative liability of Convertible promissory notes $ 45,362 $ 44,505
The decrease in the Fair value of the conversion option derivative liability of Convertible promissory notes $ 857  
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2fil_CashIncludedInShareSubscriptionsPayablefil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2truefalsefalse24002400USD$falsetruefalse3truefalsefalse1000010000USD$falsetruefalse4truefalsefalse60006000USD$falsetruefalsexbrli:monetaryItemTypemonetaryCash included in share subscriptions payable.No definition available.false24false 2fil_ShareSubscriptionsPayableInServicesfil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2truefalsefalse30003000falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryShare subscriptions payable in services,No definition available.false25false 2fil_CashIncludedInShareSubscriptionsPayableForSubscriptionsAgreementsEnteredIntoInJuly2013fil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2truefalsefalse3000030000falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryCash included in share subscriptions payable for subscriptions agreements entered into in July 2013No definition available.false26false 2fil_ShareSubscriptionsPayableInServicesForSubscriptionsAgreementsEnteredIntoInJuly2013fil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2truefalsefalse1100011000falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryShare subscriptions payable in services for subscriptions agreements entered into in July 2013No definition available.false27false 2fil_CompanyIssuedSharesOfCommonStockForCashfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse10142851014285falsefalsefalse2falsefalsefalse00falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:sharesItemTypesharesCompany issued shares of common stock for cashNo definition available.false18false 2fil_ValueOfCommonStockSharesIssuedForCashfil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse7100071000falsefalsefalse2falsefalsefalse00falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryValue of common stock shares issued for cashNo definition available.false29false 2fil_SharesOfCommonStockForAnnualMineralLeasePaymentfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse150000150000falsefalsefalse2falsefalsefalse00falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:sharesItemTypesharesShares of common stock for annual mineral lease paymentNo definition available.false110false 2fil_ValueOfSharesOfCommonStockForAnnualMineralLeasePaymentfil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse1515015150USD$falsetruefalse2falsefalsefalse00falsefalsefalse3falsefalsefalse00falsefalsefalse4falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryValue of Shares of common stock for annual mineral lease paymentNo definition available.false2falseSUBSEQUENT EVENTS TRANSACTIONS (Details) (USD $)NoRoundingNoRoundingUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_SUBSEQUENTEVENTSTRANSACTIONSDetails410 XML 74 R26.xml IDEA: Unsecured promissory note agreement (Details) 2.4.0.8000260 - Statement - Unsecured promissory note agreement (Details)truefalsefalse1false USDfalsefalse$E13Q2http://www.sec.gov/CIK0001355677instant2013-06-30T00:00:000001-01-01T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$2false USDfalsefalse$I130108http://www.sec.gov/CIK0001355677instant2013-01-08T00:00:000001-01-01T00:00:00SharesStandardhttp://www.xbrl.org/2003/instanceshares0USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$1true 1fil_UnsecuredPromissoryNoteAgreementAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2fil_CompanyEnteredIntoAnUnsecuredPromissoryNoteAgreementWithWilliamHBrinkerInTheAmountfil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2truefalsefalse185000185000USD$falsetruefalsexbrli:monetaryItemTypemonetaryCompany entered into an unsecured promissory note agreement with William H. Brinker in the amountNo definition available.false23false 2fil_FinanceChargeOnNotefil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2truefalsefalse50005000falsefalsefalsexbrli:monetaryItemTypemonetaryFinance charge on noteNo definition available.false24false 2fil_NoteIsSecuredByNumberOfStockfil_falsenainstantfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2truefalsefalse50000005000000falsefalsefalsexbrli:sharesItemTypesharesFinance charge on noteNo definition available.false15false 2fil_CompanyRepaidInPrincipalAmountfil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse5000050000falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryCompany repaid in principal amountNo definition available.false26false 2fil_AmountRemainsOutstandingfil_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse140000140000USD$falsetruefalse2falsefalsefalse00falsefalsefalsexbrli:monetaryItemTypemonetaryAmount remains outstandingNo definition available.false2falseUnsecured promissory note agreement (Details) (USD $)NoRoundingNoRoundingUnKnownUnKnowntruefalsefalseSheethttp://www.mexusgold.com/20130630/role/idr_UnsecuredPromissoryNoteAgreementDetails26 XML 75 R28.xml IDEA: NOTES PAYABLE - RELATED PARTY (Details) 2.4.0.8000280 - Statement - NOTES PAYABLE - RELATED PARTY (Details)truefalsefalse1false USDfalsefalse$E13Q2http://www.sec.gov/CIK0001355677instant2013-06-30T00:00:000001-01-01T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$2false USDfalsefalse$E13Q1http://www.sec.gov/CIK0001355677instant2013-03-31T00:00:000001-01-01T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$1true 1fil_NOTESPAYABLERELATEDPARtyCONSISTSOFTHEFOLLOWINGAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2fil_CashAdvancesToTheCompanyPaulDThompsonIsTheSoleDirectorAndOfficerfil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse571571USD$falsetruefalse2truefalsefalse89928992USD$falsetruefalsexbrli:monetaryItemTypemonetaryCashAdvancesToTheCompanyPaulDThompsonIsTheSoleDirectorAndOfficerNo definition available.false23false 2fil_NotesPayableDueToTaurusGoldIncTotalledfil_falsedebitinstantfalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse247850247850USD$falsetruefalse2truefalsefalse210000210000USD$falsetruefalsexbrli:monetaryItemTypemonetaryotesPayableDueToTaurusGoldIncTotalledNo definition available.false2falseNOTES PAYABLE - RELATED PARTY (Details) (USD $)NoRoundingUnKnownUnKnownUnKnowntruefalsefalseNoteshttp://www.mexusgold.com/20130630/role/idr_NOTESPAYABLERELATEDPARTYDetails23 XML 76 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
SUBSEQUENT EVENTS
3 Months Ended
Jun. 30, 2013
SUBSEQUENT EVENTS:  
SUBSEQUENT EVENTS

14.  

SUBSEQUENT EVENTS

 

On July 16, 2013, the Company issued 66,666 shares of common stock to satisfy obligations under share subscription agreements for $6,000 in cash included in share subscriptions payable.

 

On July 17, 2013, the Company issued 125,000 shares of common stock to satisfy obligations under share subscription agreements for $10,000 in cash included in share subscriptions payable.

 

On July 22, 2013, the Company issued 576,571 shares of common stock to satisfy obligations under share subscription agreements for $2,400 in cash and $3,000 in services, included in share subscriptions payable, and $30,000 in cash and $11,000 in services for subscriptions agreements entered into in July 2013.

 

On July 31, 2013, the Company issued 1,014,285 shares of common for $71,000 in cash and 150,000 shares of common stock for annual mineral lease payment valued at $15,150 ($0.101 per share).

 

XML 77 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
SECURED CONVERTIBLE PROMISSORY NOTES
3 Months Ended
Jun. 30, 2013
SECURED CONVERTIBLE PROMISSORY NOTES:  
SECURED CONVERTIBLE PROMISSORY NOTES

10.  

SECURED CONVERTIBLE PROMISSORY NOTES

 

On June 12, 2013, the Company entered into a Securities Purchase Agreement with Typenex Co-Investment, LLC (“Typenex”), for the sale of an 8% Secured Convertible Promissory Notes (“Notes”) in the principal amount of $557,500 consisting of an initial tranche of $307,500 comprising of $250,000 of cash at closing, Typenex legal expenses in the amount of $7,500 and a $50,000 original issue discount and an additional tranche $250,000 in cash. On June 12, 2013 the Company closed on the initial tranche and on June 30, 2013, the Company has not closed on the additional tranche. The Company has no obligation to pay Typenex any amounts on the unfunded portion of the Note. The Notes have a maturity date that is thirteen months after the issuance date. Typenex has been granted a security interest in the property of the Company.

 

At the option of the holder, all principal, costs, charges and interest amounts outstanding under all of the Notes shall be exchanged for shares of the Company’s common stock at the Conversion Price of $0.23 per share. The Conversion Price is subject to an anti-dilution adjustment in the event the Company at any time, while the Notes are outstanding, issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.23 a share.

 

In conjunction with the issuance of the Notes on June 12, 2013, the Company issued a variable number of warrants of the Company’s common stock equal to $278,750 divided by the Market Price.  Market Price is defined as the higher of (i) the closing price of the common stock of the Company on June 12, 2013, and (ii) the VWAP of the common stock for the trading day that is two days prior to the exercise date.  The Exercise Price of the warrants are $0.24 per share. The Exercise Price is subject to an anti-dilution adjustment in the event the Company at any time, while the Warrants are outstanding, issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.24 a share.

 

The anti-dilution protection for the Note and Warrants excludes (a) the Company’s issuance of securities in connection with strategic license agreements and other partnering arrangements so long as any such issuances are not for the purpose of raising capital and in which holders of such securities or debt are not at any time granted registration rights, and (b) the Company’s issuance of Common Stock or the issuance or grant of options to purchase Common Stock to employees, directors, officers and consultants, authorized by the Company’s board of directors in place on June 12, 2013.

 

After six months after the issuance date, monthly installments are due on the Note payable at the option of the Company (i) in cash (ii) in shares of common stock of the Company discounted depending on the Company’s share price at either 30% or 35%, or (iii) in any combination of cash or shares.

 

On June 12, 2013, the Company recorded a discount on the Note equal to the fair value of the warrant derivative liability and convertible promissory note derivative liability. This discount is amortized using the effective interest rate method over the term of the Note.

 

 

Three months ended June 30,

 

2013

2012

Cash advanced on closing of the initial tranche

$      250,000

$               -

Discounts on Note

 

 

  Fair value of warrant derivative liability

(219,372)

-

  Fair value of convertible promissory note liability

(45,362)

-

  Loss on derivative liabilities

14,734

-

  Amortization of discount on Note

          14,048

                  -

 

$         14,048

$               -

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Warrant derivative liability measurements (Tables)
3 Months Ended
Jun. 30, 2013
Warrant derivative liability measurements:  
Warrant derivative liability measurements

The inputs into the binomial model are as follows:

 

 

June 12, 2013

June 30, 2013

Closing share price

$0.105

$0.100

Conversion price

$0.24

$0.24

Risk free rate

1.15%

1.41%

Expected volatility

150%

150%

Dividend yield

0%

0%

Expected life

60 months

59 months

XML 80 R15.xml IDEA: SECURED CONVERTIBLE PROMISSORY NOTES 2.4.0.8000150 - Disclosure - SECURED CONVERTIBLE PROMISSORY NOTEStruefalsefalse1false falsefalseY13Q2http://www.sec.gov/CIK0001355677duration2013-04-01T00:00:002013-06-30T00:00:001true 1fil_SECUREDCONVERTIBLEPROMISSORYNOTESAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2fil_SECUREDCONVERTIBLEPROMISSORYNOTESTextBlockfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100%'> <tr> <td valign="top" width="24" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;width:0.25in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>10.&nbsp;&nbsp;</b></p></td> <td valign="top" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;background-color:transparent;padding-left:0in;padding-right:0in;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'><b>SECURED CONVERTIBLE PROMISSORY NOTES</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On June 12, 2013, the Company entered into a Securities Purchase Agreement with Typenex Co-Investment, LLC (&#147;Typenex&#148;), for the sale of an 8% Secured Convertible Promissory Notes (&#147;Notes&#148;) in the principal amount of $557,500 consisting of an initial tranche of $307,500 comprising of $250,000 of cash at closing, Typenex legal expenses in the amount of $7,500 and a $50,000 original issue discount and an additional tranche $250,000 in cash. On June 12, 2013 the Company closed on the initial tranche and on June 30, 2013, the Company has not closed on the additional tranche. The Company has no obligation to pay Typenex any amounts on the unfunded portion of the Note. The Notes have a maturity date that is thirteen months after the issuance date. Typenex has been granted a security interest in the property of the Company.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>At the option of the holder, all principal, costs, charges and interest amounts outstanding under all of the Notes shall be exchanged for shares of the Company&#146;s common stock at the Conversion Price of $0.23 per share. The Conversion Price is subject to an anti-dilution adjustment in the event the Company at any time, while the Notes are outstanding, issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.23 a share.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>In conjunction with the issuance of the Notes on June 12, 2013, the Company issued a variable number of warrants of the Company&#146;s common stock equal to $278,750 divided by the Market Price.&nbsp;&nbsp;Market Price is defined as the higher of (i) the closing price of the common stock of the Company on June 12, 2013, and (ii) the VWAP of the common stock for the trading day that is two days prior to the exercise date.&nbsp;&nbsp;The Exercise Price of the warrants are $0.24 per share. The Exercise Price is subject to an anti-dilution adjustment in the event the Company at any time, while the Warrants are outstanding, issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.24 a share.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The anti-dilution protection for the Note and Warrants excludes (a) the Company&#146;s issuance of securities in connection with strategic license agreements and other partnering arrangements so long as any such issuances are not for the purpose of raising capital and in which holders of such securities or debt are not at any time granted registration rights, and (b) the Company&#146;s issuance of Common Stock or the issuance or grant of options to purchase Common Stock to employees, directors, officers and consultants, authorized by the Company&#146;s board of directors in place on June 12, 2013.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>After six months after the issuance date, monthly installments are due on the Note payable at the option of the Company (i) in cash (ii) in shares of common stock of the Company discounted depending on the Company&#146;s share price at either 30% or 35%, or (iii) in any combination of cash or shares.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On June 12, 2013, the Company recorded a discount on the Note equal to the fair value of the warrant derivative liability and convertible promissory note derivative liability. This discount is amortized using the effective interest rate method over the term of the Note.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="40%" style='width:40%'> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:black 1pt solid;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="35%" colspan="2" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:35%;padding-right:0in;background:#cceeff;border-top:black 1pt solid;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>Three months ended June 30,</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2013</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>2012</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Cash advanced on closing of the initial tranche</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250,000</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Discounts on Note</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Fair value of warrant derivative liability</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(219,372)</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Fair value of convertible promissory note liability</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(45,362)</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Loss on derivative liabilities</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>14,734</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp;&nbsp;Amortization of discount on Note</p></td> <td valign="top" width="20%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,048</p></td> <td valign="top" width="15%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr> <tr> <td valign="top" width="37%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:37%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>&nbsp; </p></td> <td valign="top" width="20%" style='border-bottom:black 2.25pt double;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:20%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,048</p></td> <td valign="top" width="15%" style='border-bottom:black 2.25pt double;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:15%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</p></td></tr></table></div>falsefalsefalsenonnum:textBlockItemTypenaEntire text block for secured convertible promissory notesNo definition available.false0falseSECURED CONVERTIBLE PROMISSORY NOTESUnKnownUnKnownUnKnownUnKnowntruefalsefalseNoteshttp://www.mexusgold.com/20130630/role/idr_DisclosureSECUREDCONVERTIBLEPROMISSORYNOTES12 XML 81 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
ACCOUNTING POLICIES(POLICIES)
3 Months Ended
Jun. 30, 2013
ACCOUNTING POLICIES(POLICIES):  
Cash and cash equivalents Policy

Cash and Cash Equivalents

 

The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

Per Share Data

Per Share Data

 

Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share". Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.

Fair Value of Financial Instruments Policy

Fair Value of Financial Instruments

 

ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

 

Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.

 

The Company's financial instruments consist of cash, accounts payable, accrued liabilities, advances, notes payable, and a loan payable. The carrying amount of these financial instruments approximate fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

 

Our warrant derivative liability and secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs.

 

Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The notes payable, loans payable and secured convertible promissory notes have fixed interest rates therefore the Company is exposed to interest rate risk in that they could not benefit from a decrease in market interest rates. In seeking to minimize the risks from interest rate fluctuations, the Company manages exposure through its normal operating and financing activities.

Deferred Financing Costs

Deferred Financing Costs

 

Deferred financing costs are amortized to interest expense based on the terms of the related debt instruments on a straight- line basis, which approximates the effective interest rate method.

Accounting for Derivative Instruments

Accounting for Derivative Instruments

 

Accounting standards require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value.  A change in the market value of the financial instrument is recognized as a gain or loss in results of operations in the period of change.

 

Stock-based Compensation Policy

Stock-based Compensation

 

The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

 

ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505.

 

Revenue Recognition

Revenue Recognition

 

The Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured.

Exploration and Development Costs

Exploration and Development Costs

 

Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values.

Mineral Property Rights

Mineral Property Rights

 

Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs would be based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, Impairment or Disposal of Long-Lived Assets.

 

Reclassification, Policy

Reclassification

 

The Company reclassified $18,052 of accounts payable, related party as of March 31, 2013 to accounts payable to conform to the current presentation.  The reclassification had no effect on the Company’s financial condition, results of operations, or cash flows.

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Document and Entity Information
3 Months Ended
Jun. 30, 2013
Aug. 14, 2013
Document and Entity Information:    
Entity Registrant Name Mexus Gold US  
Document Type 10-Q  
Document Period End Date Jun. 30, 2013  
Amendment Flag false  
Entity Central Index Key 0001355677  
Current Fiscal Year End Date --03-31  
Entity Common Stock, Shares Outstanding   219,866,654
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Document Fiscal Year Focus 2014  
Document Fiscal Period Focus Q1  
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Fair value of the warrant derivative liability (Tables)
3 Months Ended
Jun. 30, 2013
Fair value of the warrant derivative liability:  
Fair value of the warrant derivative liability

On June 12, 2013, the Company recorded a discount on the Note equal to the fair value of the warrant derivative liability and convertible promissory note derivative liability. This discount is amortized using the effective interest rate method over the term of the Note.

 

 

Three months ended June 30,

 

2013

2012

Cash advanced on closing of the initial tranche

$      250,000

$               -

Discounts on Note

 

 

  Fair value of warrant derivative liability

(219,372)

-

  Fair value of convertible promissory note liability

(45,362)

-

  Loss on derivative liabilities

14,734

-

  Amortization of discount on Note

          14,048

                  -

 

$         14,048

$               -

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