0001023175-11-000283.txt : 20110516 0001023175-11-000283.hdr.sgml : 20110516 20110516161609 ACCESSION NUMBER: 0001023175-11-000283 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20110331 FILED AS OF DATE: 20110516 DATE AS OF CHANGE: 20110516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Tara Minerals Corp. CENTRAL INDEX KEY: 0001387054 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-143512 FILM NUMBER: 11847057 BUSINESS ADDRESS: STREET 1: 2162 ACORN COURT CITY: WHEATON STATE: IL ZIP: 60187 BUSINESS PHONE: 630-462-2079 MAIL ADDRESS: STREET 1: 2162 ACORN COURT CITY: WHEATON STATE: IL ZIP: 60187 10-Q 1 tmmar31201110qclean.htm QUARTERLY REPORT ON FORM 10Q FOR THE PERIOD ENDED MARCH 31, 2011 FORM 10Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

R  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2011

£  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION FROM __________ TO __________.


COMMISSION FILE NUMBER   333-143512


TARA MINERALS CORP.

(Exact Name of Registrant as Specified in its Charter)


 Nevada

 

20-5000381 

(State or other jurisdiction of

 

 (I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

 

 

2162 Acorn Court

 

 

Wheaton, IL  

 

60189

(Address of principal executive offices)

 

  (Zip code)

 

 

 

Issuer's telephone number: (630) 462-2079

 

 


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes R    No £


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§233.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  £    No £


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.


 Large accelerated filer o

                 Accelerated filer o

Non-accelerated filer o

                  Smaller reporting company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  £   No R

As of May 16, 2011, the Company had 60,106,087 outstanding shares common stock.



1




TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

Page

 

 

Item 1.  Financial Statements

3

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations

17

Item 4.  Controls and Procedures

18

 

 

PART II - OTHER INFORMATION

 

 

 

Item 1.  Legal Proceedings

18

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

18

Item 3.  Defaults Upon Senior Securities

18

Item 4.  [REMOVED AND RESERVED]

18

Item 5.  Other Information

18

Item 6.  Exhibits

19

 

 

SIGNATURES

20





2




PART I - FINANCIAL INFORMATION



ITEM 1.     FINANCIAL STATEMENTS



TARA MINERALS CORP. AND SUBSIDIARIES

(A Subsidiary of Tara Gold Resources Corp)

(An Exploration Stage Company)


CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR

THE THREE MONTHS ENDED

MARCH 31, 2011 AND 2010

AND

THE PERIOD FROM INCEPTION (MAY 12, 2006) THROUGH MARCH 31, 2011



3




TARA MINERALS CORP. AND SUBSIDIARIES

(A Subsidiary of Tara Gold Resources Corp)

(An Exploration Stage Company)

CONDENSED CONSOLIDATED BALANCE SHEETS


 

 

 

MAR 31, 2011

 

DEC 31, 2010

 

 

 

 

(Unaudited)

 

(Audited)

 

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

$

123,310

$

157,579 

 

 

Recoverable value added taxes, net of allowance for bad debt of  $1,252,689 and $1,366,533 at March 31, 2011 and December 31, 2010, respectively

 

139,595

 

170,494 

 

 

Other receivables, net of allowance for bad debt of $3,170 and $4,692 at March 31, 2011 and December 31, 2010, respectively

 

122,405

 

104,828 

 

 

     Total current assets

 

385,310

 

432,901 

 

 

Property, plant, equipment mine development and land, net of accumulated depreciation of $353,462 and $295,925 at March 31, 2011 and  December 31, 2010, respectively

 

6,654,788

 

8,101,786 

 

 

Mining deposits

 

59,462

 

53,368 

 

 

Deferred tax, non-current portion

 

2,930,982

 

2,930,982 

 

 

Goodwill

 

12,028

 

12,028 

 

 

Other assets

 

74,029

 

157,870 

 

 

Total Assets

$

10,116,599

$

11,688,935 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable and accrued expenses

$

755,364

$

680,221 

 

 

Notes payable, current portion

 

231,161

 

824,001 

 

 

Notes payable related party

 

100,000

 

100,000 

 

 

Due to related parties, net of due from of $76,215 and $69,143 at  March 31,     2011 and December 31, 2010, respectively

 

3,237,827

 

3,465,232 

 

 

      Total current liabilities

 

4,324,352

 

5,069,454 

 

 

Notes payable, non-current portion

 

60,405

 

1,068,350 

 

 

Total liabilities

 

4,384,757

 

6,137,804 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

-

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Common stock: $0.001 par value; authorized 200,000,000 shares; issued and outstanding 58,479,987 and 57,236,288 shares at March 31, 2011 and December 31, 2010, respectively

 

58,480

 

57,236 

 

 

Additional paid-in capital

 

26,126,261

 

24,515,978 

 

 

Common stock payable, net of stock receivable of $0 and $212,744 at   March 31, 2011 and December 31, 2010, respectively

 

844,685

 

1,129,696 

 

 

Other comprehensive loss

 

(281,640)

 

(246,253) 

 

 

Accumulated deficit during exploration stage

 

(23,566,405)

 

(21,962,357) 

 

 

Total Tara Minerals stockholders’ equity

 

3,181,381

 

3,494,300 

 

 

Non-controlling interest

 

2,550,461

 

2,056,831 

 

 

    Total equity

 

5,731,842

 

5,551,131 

 

 

Total liabilities and stockholders’ equity

$

10,116,599

11,688,935 

 








See Accompanying Notes to these Condensed Consolidated Financial Statements.




4




TARA MINERALS CORP. AND SUBSIDIARIES

(A Subsidiary of Tara Gold Resources Corp)

(An Exploration Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND

COMPREHENSIVE LOSS

(UNAUDITED)



 

 

 

THREE MONTHS ENDED MAR 31 2011

 

THREE MONTHS ENDED MAR 31, 2010

 

FROM INCEPTION(MAY 12, 2006) TO  MAR 31, 2011

 

 

 

 

 

 

 

 

 

Mining revenues

$

-

$

-

$

160,421

 

 

 

 

 

 

 

 

 

Cost of revenue

 

-

 

-

 

658,007

 

Gross margin

 

-

 

-

 

(497,586)

 

 

 

 

 

 

 

 

 

Exploration expenses

 

923,004

 

1,595,971

 

3,396,713

 

 

 

 

 

 

 

 

 

Operating, general, and administrative expenses

 

695,487

 

7,115,049

 

21,067,827

 

 

 

 

 

 

 

 

 

Net operating loss

 

(1,618,491)

 

(8,711,020)

 

(24,962,126)

 

 

 

 

 

 

 

 

 

  Non-operating (income) expense:

 

 

 

 

 

 

 

       Interest (income)

 

(6,551)

 

(6,694)

 

(142,191)

 

       Loss on conversion of note payable

 

-

 

-

 

783,090

 

       Interest expense

 

5,309

 

221

 

2,094,109

 

       Gain on debt extinguishment

 

-

 

-

 

(6,178)

 

       Loss on disposal or sale of assets

 

4,260

 

-

 

4,260

 

       Other (income)

 

(11,091)

 

(1,029)

 

(791,086)

 

       Total non-operating (income) expense

 

(8,073)

 

(7,502)

 

1,942,004

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

(1,610,418)

 

(8,703,518)

 

(26,904,130)

 

 

 

 

 

 

 

 

 

Income tax benefit

 

-

 

-

 

(2,930,982)

 

 

 

 

 

 

 

 

 

Net loss including non-controlling interest

 

(1,610,418)

 

(8,703,518)

 

(23,973,148)

 

 

 

 

 

 

 

 

 

Add:  Net loss attributable to non-controlling interest

 

6,370

 

-

 

406,743

 

 

 

 

 

 

 

 

 

Net loss attributable to Tara Minerals’ shareholders

 

(1,604,048)

 

(8,703,518)

 

(23,566,405)

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

     Foreign currency translation

 

(35,387)

 

(4,877)

 

(281,640)

 

 

 

 

 

 

 

 

 

Comprehensive loss

$

(1,639,435)

$

(8,708,395)

$

(23,848,045)

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

$

(0.03)

$

(0.17)

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares, basic and diluted

 

57,547,213

 

51,904,807

 

 



See Accompanying Notes to these Condensed Consolidated Financial Statements.



5




.

TARA MINERALS CORP. AND SUBSIDIARIES

(A Subsidiary of Tara Gold Resources Corp)

(An Exploration Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


 

 

 

THREE MONTHS ENDED MAR 31, 2011

 

THREE MONTHS ENDED MAR 31, 2010

 

FROM INCEPTION (MAY 12, 2006) THROUGH MAR 31, 2011

*

Cash flows from operating activities:

 

 

 

 

 

 

 

   Net loss attributable to Tara Minerals’ shareholders

$

(1,604,048)

$

 (8,703,518)

$

(23,566,405)

 

   Adjustments to reconcile net loss to net cash used in operating  activities:

 

 

 

 

 

 

 

      Allowance for doubtful accounts

 

(115,366)

 

37,100

 

1,255,859

 

      Depreciation

 

70,079

 

44,020

 

366,004

 

      Stock based compensation and stock bonuses

 

219,088

 

3,562,967

 

8,154,292

 

      Common stock issued for services

 

-

 

2,915,060

 

5,371,684

 

      Cancellation of shares for settlement

 

-

 

-

 

(750,000)

 

      Non-controlling interest in net loss of consolidated subsidiaries

 

(6,370)

 

-

 

(406,743)

 

      Non-controlling interest - stock issued to third parties of subsidiaries

 

-

 

-

 

348,549

 

      Expense of mining deposit upon note modification

 

-

 

-

 

6,000

 

      Accretion of beneficial conversion feature and debt discount

 

-

 

-

 

1,983,575

 

      Exploration expenses paid with parent and subsidiary common stock

 

744,685

 

    1,224,375

 

1,969,060

 

      Gain on debt extinguishment

 

-

 

-

 

(6,138)

 

      Loss on conversion of debt to common stock

 

-

 

-

 

783,090

 

      Accrued interest converted to common stock

 

-

 

-

 

84,438

 

      Deferred tax asset, net

 

-

 

-

 

(2,930,982)

 

      Loss on disposal or sale of assets

 

4,260

 

-

 

4,260

 

      Rent expense reclassified from capital lease

 

12,207

 

-

 

12,207

 

   Changes in current operating assets and liabilities:

 

 

 

 

 

 

 

      Recoverable value added taxes

 

(73,760)

 

(114,790)

 

(1,127,368)

 

      Other receivables

 

(8,823)

 

(2,076)

 

(118,343)

 

      Other assets

 

83,841

 

(952)

 

(74,030)

 

      Accounts payable and accrued expenses

 

78,089

 

     169,573

 

777,439

 

   Net cash used in operating activities

 

(596,118)

 

(868,241)

 

(7,863,552)

 

Cash flows from investing activities:

 

 

 

 

 

 

 

   Acquisition of land

 

-

 

-

 

(19,590)

 

   Purchase of mining concession

 

-

 

(25,149)

 

(830,171)

 

   Deposits toward mining concessions

 

(6,094)

 

(1,267)

 

(37,094)

 

   Acquisition of property, plant and equipment

 

-

 

(42,895)

 

(2,588,049)

 

   Cash included in business acquisition

 

-

 

-

 

2,037

 

   Business acquisition goodwill

 

-

 

-

 

(3,758)

 

   Payments made for construction in progress

 

-

 

(85,000)

 

-

 

   Proceeds from disposal/sale of assets

 

29,394

 

-

 

29,394

 

   Net cash provided (used in) investing activities

 

23,300

 

(154,311)

 

(3,447,231)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

   Cash from the sale of common stock

 

         50,000

 

 818,340

 

6,748,288

 

   Proceeds from notes payable, related party

 

-

 

-

 

150,000

 

   Proceeds from notes payable

 

-

 

-

 

480,000

 

   Payments towards notes payable

 

(61,403)

 

(711,452)

 

(1,251,866)

 

   Payment towards equipment financing

 

-

 

  -

 

(201,438)

 

   Change in due to/from related parties, net

 

(127,405)

 

(107,620)

 

3,422,104

 

   Common stock receivable

 

212,744

 

21,203

 

-

 

   Non-controlling interest – cash from sale of sale of common stock of subsidiaries

 

500,000

 

281,489

 

2,368,645

 

   Net cash provided by financing activities

 

573,936

 

301,960

 

11,715,733

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

(35,387)

 

(4,877)

 

(281,640)



6







 

 

 

 

 

 

 

 

 

Net (decrease) increase

 

(34,269)

 

(725,469)

 

123,310

 

Cash, beginning of period

 

157,579

 

1,230,376

 

-

 

Cash, end of period

$

123,310

$

   504,907

$

123,310

 

 

 

 

 

 

 

 

 

Supplemental Information:

 

 

 

 

 

 

 

   Interest paid

$

34

$

25,649

$

182,451

 

   Income taxes paid

$

-

$

-

$

-

 

 

 

 

 

 

 

 

 

Non-cash Investing and Financing Transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of mining concession paid by debt to related party plus capitalized interest(negative movement due to note modification)

$

-

$

-

$

1,281,655

 

 

 

 

 

 

 

 

 

Purchase of or (reduction) in purchase of concession paid with notes payable plus capitalized interest

$

(1,310,974)

$

(3,324,485)

$

986,771

 

 

 

 

 

 

 

 

 

Recoverable value-added taxes incurred through additional debt and due to related party, net of mining concession modification

$

(218,502)

$

(508,814)

$

1,795,245

 

 

 

 

 

 

 

 

 

Beneficial conversion value for convertible debt

$

-

$

-

$

1,695,000

 

 

 

 

 

 

 

 

 

Conversion of debt to common stock, plus accrued interest

$

-

$

-

$

2,309,438

 

 

 

 

 

 

 

 

 

Purchase of mining equipment with common stock

$

-

$

-

$

600,000

 

 

 

 

 

 

 

 

 

Acquisition of property and equipment through debt

$

-

$

-

$

430,921

 

 

 

 

 

 

 

 

 

Receivable reclassified to mining deposit

$

-

$

-

$

28,368

 

 

 

 

 

 

 

 

 

Construction in progress reclassified to property plant and equipment

$

-

$

2,163,485

$

2,163,485

 

 

 

 

 

 

 

 

 

Business Combination of American Copper Mining:

 

 

 

 

 

 

 

      Cash

$

-

$

-

$

(2,037)

 

      Due from related parties

 

-

 

-

 

1,989

 

      Goodwill (from net assets)

 

-

 

-

 

8,270

 

      Accounts payable and accrued expenses

 

-

 

-

 

12,071





See Accompanying Notes to these Condensed Consolidated Financial Statements.















7





TARA MINERALS CORP. AND SUBSIDIARIES

(A Subsidiary of Tara Gold Resources Corp)

(An Exploration Stage Company)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1.

Nature of Business and Significant Accounting Policies

Nature of business and principles of consolidation:


The accompanying Condensed Consolidated Financial Statements of Tara Minerals Corp. (the “Company”) should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. Significant accounting policies disclosed therein have not changed, except as noted below.


The Company was organized May 12, 2006 under the laws of the State of Nevada. The Company currently is engaged in the acquisition, exploration and development of mineral resource properties in the United States of America and Mexico.  The Company owns 99.9% of the common stock of American Metal Mining, S.A. de C.V. (“AMM”), which was established in December 2006 and operates in México. The Company also owns 87% of the common stock of Adit Resources Corp., which in turns owns 99.9% of American Copper Mining, S.A. de C.V. (“ACM”), which was established in December 2006 and operates in México.  Adit Resources Corp. (“Adit”) was organized in June 2009 and ACM was purchased in June 2009.  The Company currently has limited operations and, in accordance with the Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Development Stage Entities Topic, is considered an Exploration Stage Company.


Tara Minerals Corp. is a subsidiary of Tara Gold Resources Corp. (“Tara Gold” or the “Company’s Parent), a publicly traded company which trades under the TRGD symbol.


Unless otherwise indicated, all references to the Company include the operations of its subsidiaries, and all references to Adit include the operation of its subsidiary.


The accompanying Condensed Consolidated Financial Statements and the related footnote information are unaudited.  In the opinion of management, they include all normal recurring adjustments necessary for a fair presentation of the condensed consolidated balance sheets of the Company at March 31, 2011 and December 31, 2010, and the condensed consolidated statements of operations for the three months ended March 31, 2011 and 2010. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. The consolidated financial statements include the financial statements of the Company, AMM, Adit and ACM. All amounts are in U.S. dollars unless otherwise indicated. All significant intercompany balances and transactions have been eliminated in consolidation.


The reporting currency of the Company and Adit is the U.S. dollar. The functional currency of AMM and ACM is the Mexican peso. As a result, the financial statements of the subsidiaries have been re-measured from Mexican pesos into U.S. dollars using (i) current exchange rates for monetary asset and liability accounts, (ii) historical exchange rates for nonmonetary asset and liability accounts, (iii) historical exchange rates for revenues and expenses associated with nonmonetary assets and liabilities and (iv) the weighted average exchange rate of the reporting period for all other revenues and expenses. In addition, foreign currency transaction gains and losses resulting from U.S. dollar denominated transactions are eliminated. The resulting re-measurement gain or loss is recorded as other comprehensive loss.


The financial statements of the Mexican subsidiaries should not be construed as representations that Mexican pesos have been, could have been or may in the future be converted into U.S. dollars at such rates or any other rates.








8





Relevant exchange rates used in the preparation of the financial statements for the subsidiary are as follows for the three months ended March 31, 2011.  Mexican pesos per one U.S. dollar.  


 

March 31, 2011

Current exchange rate

Ps.     

11.9219

Weighted average exchange rate for the nine months ended  

Ps.     

12.0782


The Company’s significant accounting policies are:


Estimates


The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Actual results could differ from those estimates.


Recoverable Value-Added Taxes (IVA) and Allowance for Doubtful Accounts


Each period receivables are reviewed for collectability.  When a receivable is determined to not be collectable we allow for the receivable until we are either assured of collection or assured that a write off is necessary.  We have recorded an allowance of $1,252,689 and $1,366,533 as of March 31, 2011 and December 31, 2010, respectively, in association with our receivable from IVA from our Mexico subsidiaries as we have determined that the Mexican government may not allow the complete refund of these taxes.


Reclassifications


Certain reclassifications, which have no effect on net loss, have been made in the prior period financial statements to conform to the current presentation.  


Purchase of Technical Data


Technical data, including engineering reports, maps, assessment reports, exploration samples certificates, surveys, environmental studies and other miscellaneous information, may be purchased for our mining concessions. When purchased for concessions without proven reserves the cost is considered research and development pertaining to a developing mine and in accordance with the Research and Development (R&D) Topic of the FASB ASC and is expensed when incurred.


Recently Adopted and Recently Issued Accounting Guidance


Adopted


In October 2009, the FASB issued changes to revenue recognition for multiple-deliverable arrangements. These changes require separation of consideration received in such arrangements by establishing a selling price hierarchy (not the same as fair value) for determining the selling price of a deliverable, which will be based on available information in the following order: vendor-specific objective evidence, third-party evidence, or estimated selling price; eliminate the residual method of allocation and require that the consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method, which allocates any discount in the arrangement to each deliverable on the basis of each deliverable’s selling price; require that a vendor determine its best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis; and expand the disclosures related to multiple-deliverable revenue arrangements. These changes become effective on January 1, 2011. The Company has determined that the adoption of these changes will not have an impact on its consolidated financial statements, as the Company does not currently have any such arrangements with its customers.



9







Issued


In January 2010, the FASB issued guidance to amend the disclosure requirements related to recurring and nonrecurring fair value measurements. The guidance requires a roll forward of activities on purchases, sales, issuances, and settlements of the assets and liabilities measured using significant unobservable inputs (Level 3 fair value measurements). The guidance will become effective for the Company with the reporting period beginning July 1, 2011. The adoption of this guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements.


Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not, or are not believed by management to, have a material impact on the Company’s present or future consolidated financial statements.


Note 2.

Property, plant, equipment, mine development and land


 

March 31, 2011

December 31, 2010

 

(Unaudited)

(Audited)

 

 

 

Land

$

19,590 

$

19,590 

 

 

 

Mining concessions:

 

 

  Pilar (a)

710,172 

710,172 

  Don Roman

521,739 

521,739 

  Las Nuvias

100,000 

100,000 

  Centenario (b)

635,571 

1,946,545 

  Pirita

246,455 

246,455 

  Picacho

1,250,000 

1,250,000 

  La Palma (c )

79,974 

Mining concessions

3,543,911 

4,774,911 

 

 

 

Construction in Progress

Property, plant and equipment

3,444,749 

3,603,210 

 

7,008,250 

8,397,711 

Less – accumulated depreciation

(353,462)

(295,925)

 

$

6,654,788 

$

8,101,786 


Pilar, Don Ramon, Las Nuvias and Centenario properties are geographically located in Mexico and are known as the Don Roman Groupings.


a.

In November 2008, the Company acquired eight mining concessions known as “Centenario” from an independent third party. The properties approximate 5,400 hectares and were purchased for $1,894,050, including $247,050 in value added taxes.


In June 2009, the Company and the note holder modified the agreement to 1) revalue the entire Centenario concession to $2,000,000, 2) apply $127,000 toward the purchase price which had already been paid and recorded as a mining deposit, and 3) apply $197,956 toward the new price of the concession which was originally paid by another subsidiary of the Company’s Parent.  These changes resulted in the following 1) additional debt of $28,044 plus related value added tax for these concessions, 2) the reduction of the amount of the mining deposit of $127,000, 3) the expense of $6,000 that AMM also paid but which was not included in the revaluation of the concession, and 4) the increase in Due to Related Party of $197,956 plus related value added tax. The effective amount financed in relation to this concession is $1,675,044 plus $251,257 of value added tax.




10






In March 2011, AMM and the note holder agreed to reduce the purchase of the Centenario concession to $635,571. These changes resulted in the following: 1) decrease debt by $1,310,974; and 2) decrease recoverable value added taxes by $218,309. At March 31, 2011 the amended purchase price was paid in full.  


In March 2011, the Company purchased technical data pertaining to Centenario from the former owner in consideration for 416,100 shares of the Company’s common stock and $100,000 cash. The parties agreed that the value of the stock for the technical data was $2.00 per share for the Company’s common stock.  The Company has accounted for the shares at their fair market value as follows:  416,100 shares of the Company’s common stock were valued at $0.85.  All fair market values were determined based on contemporaneous stock issuances for cash or if the stock was quoted on an exchange, it’s closing stock price. All stock was issued April 2011.


b.

On March 2011, AMM executed an agreement to acquire six mining concessions known as La Palma from an independent third party. The properties approximate 2,104 hectares, and were purchased for a total of $92,800, including $12,800 in value added taxes. AMM paid $50,000 as a deposit for the concession mining deposit which was applied to the effective price of the property.  The remaining balance of $42,800 is due thirty days after the execution date of the agreement.  


In March 2011, the Company purchased technical data pertaining to the La Palma from the former owner for 460,000 shares of the Company’s common stock. The parties agreed that the value of the stock for the technical data was $2.00 per share for the Company’s common stock.  The Company has accounted for the shares at their fair market value as follows:  460,000 shares of the Company’s common stock were valued at $0.85.  All fair market values were determined based on contemporaneous stock issuances for cash or if the stock was quoted on an exchange, it’s closing stock price. All stock was issued April 2011.


Other Fixed Assets


For the three months ended March 31, 2011, Tara Minerals and its subsidiaries disposed of and sold equipment and other fixed assets, for a $4,260 loss on disposal and sale of assets.


Note 3.

Other assets


In September 2010, Tara Minerals signed an agreement to purchase three real estate properties for a price of $1,000,000. In order to hold these properties Tara Minerals made a cash deposit of $60,000. Tara Minerals is obligated to pay all the expenses, fees and general expenditures relating to the sale, which expenses, up to a maximum of $500,000, which are deductible from the sales price.  In March 2011, Tara Minerals received notification from Pacemaker Silver Mining S.A. de C.V. a wholly-owned Mexican subsidiary of El Tigre, indicating that they also had surface rights related to being able to work claims they held mining rights too. Although this is does not effect our specific right to the tailing piles, there could be an issue as to who would have specific areas and specific times.   Until the difference can be determined, the deposit was expensed as of March 31, 2011.


Note 4.

Related Party Transactions


Due to related parties, net of due from was $3,237,827 and $3,465,232 as of March 31, 2011 and December 31, 2010, respectively.

 

As of March 31, 2011, Tara Gold loaned the Company $1,588,257 which amount is included in Due to Related Parties. There are no terms to this related party payable and it is due on demand.


In September 2010, Tara Gold entered into a tentative agreement with Tara Minerals which provided that Tara Minerals will acquire all of the outstanding shares of Tara Gold by exchanging one Tara Mineral share for two Tara Gold shares.  In 2011 this acquisition was cancelled.  Tara Gold Resources Corp. will begin to distribute all of its shares in Tara Minerals to its shareholders at a rate of one Tara Minerals common share for every 20 outstanding shares of Tara Gold Resources Corp.  The ex-dividend date is May 18, 2011, the record date is May



11






20, 2011 and the payment date is May 27, 2011.  Additional distributions will be announced over the next 24 months until all Tara Minerals shares, held by Tara Gold, are distributed to Tara Gold shareholders.


Note 5.

Notes Payable


The following table represents the outstanding balance of loans and capital leases for the Company as of March 31, 2011 and December 31, 2010.


 

March 31, 2011

December 31, 2010

 

(Unaudited)

(Audited)

 

 

 

Mining concession

$

205,229 

$

1,699,737 

Auto loans

86,337 

119,766 

Equipment

72,848 

 

291,566 

1,892,351 

Less – current portion

(231,161)

(824,001)

Total – non-current portion

$

60,405 

$

1,068,350 


During the three months ended March 31, 2011, one of the vehicles purchased in 2010 was stolen, the insurance claim was processed and the note payable and the fixed asset removed from the AMM’s books.  


During the three months ended March 31, 2011, AMM defaulted on an equipment capital lease entered into on July 21, 2010, the equipment was returned and removed from the books and treated as an operating lease.


Note 6.

Stockholders’ Equity


The authorized common stock of the Company consists of 200,000,000 shares with par value of $0.001.


March 2011, the Company issued 1,012,977 shares of common stock valued at $1,215,572 or $1.20 a share to convert loans from unrelated parties.


March 2011, the Company issued 105,722 shares of common stock valued at $126,866 or $1.20 a share to convert a loan from a related party.


March 2011, the Company issued 125,000 shares of common stock for warrants exercised, for $50,000 or $0.40 a share for cash.


Common Stock Subscribed


At March 31, 2011, common stock payable consists of:

·

100,000 shares payable to an Officer of the Company, valued at $100,000, for payment of services on behalf of Tara Gold.

·

416,100 shares payable, valued at $353,685 for the purchase of Centenario’s technical data. See Note 2 above.

·

460,000 shares payable, valued at $391,000 for the purchase of La Palma’s technical data. See Note 2 above.


Note 7.

Stock Compensation


In January 2010, the Company granted two of its officer’s options under its Incentive Stock Option Plan for the purchase of 750,000 shares of common stock. The options are exercisable at a price of $1.57 per share and vest at various dates until January 2017. The options expire at various dates beginning January 2015.  As of March 31, 2011 options that vested in 2011 were valued at $182,735.




12






In September 2010, the Company granted options for 200,000 shares of common stock to an unrelated third party for investor relations services. The options have an exercise price of $1.00 per share, vest between September 2010 and March 2011 and expire two years from the date of vesting. As of March 31, 2011 options that vested in 2011 were valued at $36,353.


No options or warrants were issued in the first quarter 2011.


The fair value of each option award discussed above is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on volatilities from the Company’s traded common stock. The expected term of options granted is estimated at half of the contractual term as noted in the individual option agreements and represents the period of time that management anticipates option granted are expected to be outstanding.  The risk-free rate for the periods within the contractual life of the option is based on the U.S. Treasury bond rate in effect at the time of grant for bonds with maturity dates at the estimated term of the options.


 

2010

(date of grant)

Expected volatility

208.37% - 319.79%

Weighted-average volatility

159.17%

Expected dividends

0

Expected term (in years)

0.75 – 4.50

Risk-free rate

0.30% - 2.37%



A summary of option activity under the Plan as of March 31, 2011 and changes during the period then ended is presented below:


Options

Shares

Weighted-

Average

Exercise

Price

Weighted-

Average

Remaining

Contractual

 Term

Aggregate

Intrinsic

 Value

Outstanding at December 31, 2010

4,630,000

$

0.05

 

 

Granted

-

-

 

 

Exercised

-

-

 

 

Forfeited or expired

-

-

 

 

Outstanding at March 31, 2011

4,630,000

$

0.05

3.5

$2,025,000

Exercisable at March 31, 2011

3,330,000

$

0.46

3.5

$

2,025,000

 


 

Nonvested Options

Options

Weighted

-Average

Grant-Date

 Fair Value

Nonvested at December 31, 2010

1,475,000 

$

1.37

Granted

-

Vested

(175,000)

1.22

Forfeited

-

Nonvested at March 31, 2011

1,300,000 

$

0.86




13






A summary of warrant activity under the Plan as of March 31, 2011, and changes during the period then ended is presented below:


Warrants

Shares

Weighted-

Average

Exercise

Price

Weighted-

Average

Remaining

Contractual

Term

Aggregate

Intrinsic

Value

Outstanding at December 31, 2010

4,271,999

$

0.65

 

 

Granted

-

 

 

Exercised

(125,000)

0.40

 

 

Forfeited, cancelled or expired

-

 

 

Outstanding at  March 31, 2011

4,146,999 

$

0.85

1.5

$  580,590

Exercisable at March 31, 2011

4,146,999 

$

0.85

1.5

$

580,590


All warrants at March 31, 2011 were vested.


Note 8.

Non-controlling Interest


On January 28, 2011, Adit, sold 500,000 units at a price of $1.00 per unit to Yamana Gold Inc.  Each unit consisted of one share of Adit’s common stock and one half warrant. Each full warrant entitles Yamana to purchase one share of Adit’s common stock at a price of $1.50 per share at any time on or before January 28, 2014.


In connection with the sale of the units, Adit also signed a letter of intent that grants Yamana an option to acquire up to a 70% interest in Adit’s Picacho gold/silver project.  A definitive agreement is expected to be completed May 15, 2011.  Upon completion of the definitive agreement, Adit will sell an additional 2,500,000 units to Yamana at a price of $1.00 per unit. The units will be identical to the units sold on January 28, 2011.  From the $3,000,000 received from Yamana, Adit will be required to spend $2,000,000 in exploration work on the Picacho project within 12 months of signing the definitive agreement.  


Yamana can earn a 51% interest in the project by spending an additional $5,000,000 on the project within 30 months of the date of the definitive agreement and paying Adit an additional $1,000,000. Yamana can increase its interest to 70% by spending an additional $9,000,000 on the project and paying Adit an additional $2,000,000.


 

Non-controlling interest at March 31, 2011

Non-controlling interest at December 31, 2010

Combined Adit / ACM:

 

 

Private placement

$

1,499,501 

$

1,499,501 

Common stock for cash

500,000 

Finder’s fees

95,215 

95,215 

Technical data for Picacho

240,000 

240,000 

Officer compensation

487,500 

487,500 

Officer options

134,978 

134,978 

Cumulative statement of operations pickup through December 31, 2010

(400,368)

(400,368)

  Statement of operations pickup 2011

(6,370)

AMM Non-controlling interest

Total non-controlling interest

$

2,550,461 

$

2,056,831 




14







Note 9.

Fair Value


In accordance with authoritative guidance, the table below sets forth the Company's financial assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.


 

Fair Value at March 31, 2011

 

Total

Level 1

Level 2

Level 3

Assets:

 

 

 

 

None

$

-

$

-

$

-

$

-

 

 

 

 

 

Liabilities:

 

 

 

 

Total notes payable

$

291,566

$

291,566

$

-

$

-

Due to related parties, net of due from

3,237,827

3,237,827

-

-

Total

$

3,529,393

$

3,529,393

$

-

$

-


 

Fair Value at December 31, 2010

 

Total

Level 1

Level 2

Level 3

Assets:

 

 

 

 

None

$

-

$

-

$

-

$

-

 

 

 

 

 

Liabilities:

 

 

 

 

Total notes payable, including related   party

$

1,992,351

$

1,992,351

$

-

$

-

Due to related parties, net of due from

3,465,232

3,465,232

-

-

Total

$

5,457,583

$

5,457,583

$

-

$

-


Note 10.

Subsequent Events


Management evaluated all activity of the Company through May 14, 2011 (the issue date of the Financial Statements) and concluded the following disclosures are pertinent:


a.

In April 2011, the Company and AMM signed a letter of intent with Springbok Development-Claridge-Hanlon Resource Engineering, “SD-CHRE” and/or Nominee or any of its subsidiaries to grant them an option to acquire up to an undivided forty-nine percent (49%) interest in and to all of the mining concessions known as the Don Roman grouping located in the State of Sinaloa, Mexico. The Don Roman grouping now totals approximately 10,000 hectares in close proximity to the existing mill, which includes the Don Roman, Centenario, and the newly acquired La Verdes concessions. The grouping lies 15 km SW of the historically prolific La Reforma silver/zinc/lead district. Key personnel from SD-CHRE have worked on Mining, Commercial, Government and Infrastructure projects for over 20-years.


The Letter of Intent is non-binding and requires SD-CHRE, as the mine and mill operator, to make a $250,000 cash payment to The Company within 45 days of the signing. To earn its 49% interest, SD-CHRE will incur a minimum of $2 million to start-up the existing mill and achieve a production rate of 120 tonnes per day within 120 days; incur another $2 million to achieve a production rate of 360 tonnes per day within 6 months; and incur an additional minimum $4 million to achieve and maintain a minimum production rate, as the parties may agree upon within the Definitive Agreement, not to be less than 480 tonnes per day, within twelve months.



15






The net revenue generated from the project will be shared on a 50% SD-CHRE and 50% the Company basis. The LOI envisions an assessment and design period of 45-60 days and a Definitive Agreement within 90 days.


b.

In April 2011, the Company entered into an agreement to acquire 100% of the La Verdes gold, silver, zinc and lead project grouping. The 2,200 hectares property consists of eight concessions 13-18 km from the Don Roman mine and mill. The concessions were being mined as late as 2010, with the extracted material grading 0.5-1.5 g/t gold, 300-600 g/t silver, 14-15% zinc, 6-8% lead, and 2.1-2.6% copper. Recent channel samples across the workings assayed similar grades. A road from the groupings, to the Don Roman mill, has also been completed. The Company now controls over 10,000 hectares in close proximity to the mill.


The Company is acquiring the grouping for $1.8 million plus applicable taxes. $1.66 million of the acquisition cost will be paid by the issuance of The Company restricted shares valued at $2 per share, with the remainder being paid in cash.


The La Verdes grouping comprises of an extensive area of hydrothermal alteration that hosts numerous precious and base metal occurrences along the western part of the Northern Sierra Madre Gold Belt. The property lies 30 km SW of the historically prolific La Reforma Pb-Zn-Ag District that is now the focus of concerted exploration by Peñoles. The grouping has 50 m of tunnels and 14 known showings of old workings. Numerous gold/silver/zinc/lead vein structures have been identified with three being well defined. These veins are approximately 1.5-8 meters wide and are comprised of 80% sulfides. The strike length of some of these structures have already been traced to a combined total of over 5 kilometers.


c.

In May 2011, the Company reached an agreement for the right to mine the 3,233 hectare Tania Iron Ore property located in Manzanillo, State of Colima, Mexico. The Company has the right to remove 6 million tonnes of salable concentrate from the property, with perpetual renewal rights, extending through the life of the property. The Company will pay the vendor $6 per salable tonne for the first 500,000 tonnes removed from the property and $7 per tonne thereafter. A total of $100,000 will be advanced to the vendor against future royalty payments.


The Company is also pleased to announce that it has raised $750,000 through a royalty rights offering to advance the project. A portion of the funds will be used to secure appropriate environmental permits, export permits, and recovery process engineering.


The Tania property is located 33 km from the port of Manzanillo. The Iron is contained within decomposed granite with little overburden. On the surface, the mineralized zone is estimated to be 2 km wide and approximately 1 km in length. The zone is continuous and sampled 30-40% Iron. The property has not been subjected to modern exploration methods or concentrating processes.


d.

In May 2011, the Company increased its authorized shares to 200,000,000.  


e.

In May 2011, the Company sold 1,643,333 Units at a price of $0.30 per Unit.  Each Unit consisted of one share of the Company’s common stock and one warrant.  Each warrant entitles the holder to purchase one share of the Company’s common stock at a price of $1.00 per share during the one year period following the sale of the Units.  All warrants expire May 2012.






16






ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION


Tara Minerals was incorporated on May 12, 2006.  During the period from its incorporation through March 31, 2011 Tara Minerals generated revenue of $160,421 and incurred expenses of $658,007 in cost of sales; $3,346,713 in exploration expenses and $21,008,603 in operating and general administration expenses.  Included in operating and general and administrative expenses is a non-cash charge of $8,154,292 pertaining to the issuance of stock options.


Tara Minerals anticipates that its capital requirements during the twelve months ending May 31, 2012 will be:


Exploration and Development – Centenario

 

$

250,000

Property taxes – Centenario

 

25,000

Exploration and Development – Choix/Pilar

 

100,000

Property payments and taxes – Choix/Pilar

 

30,500

Exploration and Development – La Verde

 

500,000

Property taxes – La Verde

 

62,000

Exploration and Development – Don Roman Groupings

 

650,000

Property taxes – Don Roman Groupings

 

3,500

Exploration and Development -  Picacho Prospect

 

2,500,000

Property taxes – Picacho Prospect

 

40,000

General and administrative expenses  

 

375,000

Total

 

$

4,536,000


The capital requirements shown above include capital required by Tara Minerals and subsidiaries.


Tara Minerals will need to obtain additional capital if it is unable to generate sufficient cash from its operations or find joint venture partners to fund all or part of its exploration and development costs.


In 2011, Tara Minerals has sought to expand and advance the Don Roman Groupings project by acquiring additional highly prospective mineral claims; and by opening up the project to numerous parties that have expressed an interest in the possibility of becoming an operating partner in the further development of the Don Roman Groupings.  In April 2011, the Company signed a Letter of Intent (LOI) that would provide the capital and expertise to restart the operations at Don Roman and explore the full potential of the land package we have assembled. Interest from various parties have also been expressed towards El Oro (a concession within the Don Roman Groupings), Tara Minerals iron ore, gold, copper prospect. Based on this interest, Tara Minerals has been investigating the economic merits surrounding the iron ore market, and has found favorable results. The Company has now signed an agreement on one highly prospective property named Tania, which meets a number of the qualifications we have been looking for;  close proximity to port; the potential for several million tonnes of Iron Ore; and good infrastructure, which would allow for a near term production strategy. Coinciding with this acquisition, the Company has raised what it believes to be sufficient capital to reach production within the coming months.


As of May 16, 2011 Tara Minerals was reviewing the Pirita property for continued inclusion as part of the Company’s mining property portfolio.  No payments toward this property have been made in 2011 and the Company may decide to terminate the purchase agreement and return the property due to its current focus as described above.


Tara Minerals’ future plans will be dependent upon the amount of capital available to Tara Minerals, the amount of cash provided by its operations, and the extent to which Tara Minerals is able to have joint venture partners pay the costs of exploring and developing its mining properties.  


Tara Minerals does not have any commitments or arrangements from any person to provide Tara Minerals with any additional capital.  If additional financing is not available when needed, Tara Minerals may continue to operate in its present mode or Tara Minerals may need to cease operations.  Tara Minerals does not have any plans, arrangements or agreements to sell its assets or to merge with another entity.



17





See Note 1 to the financial statements included as part of this report for a description of Tara Minerals’ accounting policies and recent accounting pronouncements.


ITEM 4.   CONTROLS AND PROCEDURES


Francis Richard Biscan, Jr., the Company’s Principal Executive Officer and Lynda R. Keeton-Cardno, the Company’s Principal Financial and Accounting Officer, have evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934) as of the end of the period covered by this report, and in their opinion the Company’s disclosure controls and procedures are effective.  


There were no changes in the Company’s internal controls over financial reporting that occurred during the period that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II

OTHER INFORMATION

ITEM 1.      LEGAL PROCEEDINGS


None.


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


Note 6 to the financial statements included as part of this report lists all unregistered sales of the Company’s securities during the three months ended March 31, 2011.  The Company relied upon the exemption provided by Section 4(2) of the Securities Act of 1933 with respect to the sale of these shares.  The persons who acquired these shares were all provided with information concerning the Company prior to the purchase of their shares.  The certificates representing the shares of common stock bear legends stating that the shares may not be offered, sold or transferred other than pursuant to an effective registration statement under the Securities Act of 1933 or pursuant to an applicable exemption from registration.  The shares are “restricted” securities as defined in Rule 144 of the Securities and Exchange Commission.


ITEM 3.      DEFAULTS UPON SENIOR SECURITIES


None.


ITEM 4.     [REMOVED AND RESERVED]


ITEM 5.     OTHER INFORMATION


None.



18







ITEM 6.     EXHIBITS  


(a)

Exhibits

10.1

Modified Agreement – Centenario

10.2

Acquisition Agreement – Centenario’s technical data

10.3

Acquisition Agreement – La Palma

10.4

Acquisition Agreement –La Palma’s technical data

10.5

Acquisition Agreement – La Verde

10.6

Letter of Intent – Don Roman grouping

10.7

Acquisition Agreement – Tania Iron Ore property

31.1

Rule 13a-14(a) Certifications –CEO

31.2

Rule 13a-14(a) Certifications – CFO

32.1

Section 1350 Certifications

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension Schema Document

101.CAL

XBRL Taxonomy Calculation Linkbase Document

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

XBRL Taxonomy Label Linkbase Document

101.PRE

XBRL Taxonomy Presentation Linkbase Document



19








SIGNATURES



In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on May 16, 2010.


TARA MINERALS CORP.




By:   /s/ Francis Richard Biscan Jr.

 Francis Richard Biscan, Jr.,

President and Principal Executive Officer




By:   /s/ Lynda R. Keeton-Cardno

 Lynda R. Keeton-Cardno,

Principal Financial and Accounting Officer



 




20



EX-10.1 2 f101modifiedagreementcentena.htm MODIFIED AGREEMENT ??? CENTENARIO Exhibit 10.1

TERMINATION SETTLEMENT AND MUTUAL DISCHARGE AGREEMENT SUBSCRIBED ON ONE HAND BY A) HÉCTOR MANUEL CERVANTS SOTO PER HIS OWN RIGHT (THE PRINCIPAL) AND ON THE OTHER, B) AMERICAN METAL MINING, S. A. DE C. V., REPRESENTED IN THIS ACT BY RAMIRO TREVIZO GONZÁLEZ IN HIS PERSONALITY AS GENERAL PROXY (THE ASSIGNEE), JOINTLY NAMED THE PARTIES, IN ACCORDANCE WITH THE FOLLOWING PREVIOUS RECORDS, DECLARATIONS AND CLAUSES.



PREVIOUS RECORDS



I.

On the 25th November 2008 PARTIES subscribed a Transfer of Mining Rights Contract by virtue of which, among other terms and conditions, the PRINCIPAL transferred in favor of the ASSIGNEE the title holding of mining rights specified in the Previous Records of said instrument, agreeing to receive in exchange as counterclaim the amount of $1674,000.00 Dollars (One million six thousand seventy four Dollars 00/100 in currency of the United States of America), plus the corresponding Added Value Tax to be paid accordingly to the schedule of payments agreed upon for such a purpose (the CONTRACT). Ordinary cpy of said instrument is attached to this present writing for purposes of clarity and certainty as Annex I;


II.

For formality purposes the subscription of the CONTRACT by the PARTIES was ratified on the 25th November 2008 before testimony of Mrs. Elsa Ordóñez Ordóñez, applicant to the office of Public Notary and ascribed to Notary Public number 28 of the Morelos Judicial  District, State of Chihuahua and acting in the stead of the Offices Title Holder per his license, Felipe Colomo Castro, Attornet at Law, and instrument that was inscribed in the respective Act of volume XIV of the Book of Acts Out of Protocol under numeral 16,268 on the 25th November 2008;


III.

Afterwards, on the 2nd June 2009, PARTIES subscribed a Modifying Agreement by virtue of which, among other terms and conditions, it was convened to modify the amount of the established price in the CONTRACT as counterclaim for the transferred mining rights in favor of the ASSIGNEE and setting it on the amount of $2000,000.00 Dollars (Two million Dollars 00/100 in currency of the United States of America), plus the corresponding Added Value Tax as well as the schedule of the respective payments. Ordinary copy of said instrument is attached to this present writing for purposes of clarity and certainty as Annex II;


IV.

For formality purposes, the subscription of this CONTRACT by the PARTIES was ratified on the 15th June 2009 before testimony of Mrs. Elsa Ordóñez Ordóñez, applicant to the office of Public Notary and ascribed to Notary Public number 28 of the Morelos Judicial  District, State of Chihuahua and acting in the stead of the Offices Title Holder per his license, Felipe Colomo Castro, Attornet at Law, and instrument that was inscribed in the respective Act of volume XIV of the Book of Acts Out of Protocol under numeral 16,4620 also on the 15th June 2009;



1



V.

To date of this writing, the ASSIGNEE has paid in favor of the PRINCIPAL per counterclaim concept for the transfer of the mining rights indicated in the CONTRACT a total amount of $732,006.00 Dollars (Seven thousand thirty two and six Dollars 00/100 in currency of the United States of America) (the PRICE PAID);


VI.

Recently in days past, the ASSIGNEE proposed to the PRINCIPAL the possibility of reducing the price of the operation in comment and fixing it specifically on the amount of the PRICE PAID, and in such a manner be in the possibility of definitely concluding with the pending obligation of payment on the part of the ASSIGNEE and, in consequence, proceed to grant the mutual discharge regarding the relationship between the PARTIES;


VII.

The PRINCIPAL considered as feasible the described proposal as it was convenient to its interests, and;


VII.

Derived from the above, parties proceeded to prepare this present agreement for purposes of clarity and judicial certainty.



DECLARATIONS



I.

The PRINCIPAL declares per his own right and under oath of declaring the truth, that:


1. He is a Mexican national, of age, in full use of his mental and physical capacities and reason why he enjoys the complete capacity to subscribe this present contract;


2. To be duly inscribed in the Federal Taxpayers Registry with Fiscal Identification Number CESH-620803-JCA and to be up to date in his income tax payments and other contributions that have corresponded as per the applicable and current fiscal legislations;


3. He acknowledges having received from the PRINCIPAL prior to the date of subscription of this present contract, the amount of $732,006.00 Dollars (Seven thousand thirty two and six Dollars 00/100 in currency of the United States of America), that is, the amount of the PRICE PAID as counterclaim concept for the transfer of the mining rights initially agreed in the CONTRACT;


4. It is his will to subscribe this present agreement with the purpose of decreasing the price agreed upon in the CONTRACT and afterwards modified by the AGREEMENT, and be in the possibility of concluding with the pending payment obligations charged to the ASSIGNEE, and heeding in every instance to the terms and conditions of this present contract.



II.

The ASSIGNEE declares through its legal representative and under oath of stating the truth, that;




2



1. Being a Mexican Mercantile Society, specifically a Stock Company with Varying Amount of Capital, duly established and operating in agreement with the applicable and current legislation of the United Mexican States, just as proven by Public Writ number 17, 227 granted on the 4th December 2006 before testimony of Eugenio Fernando García Russek, applicant to the office of Notary Public and ascribed to Public Notary number 28 of the Morelos Judicial District, State of Chihuahua and acting in the stead per license of the Offices Title Holder, Felipe Colomo Castro, Attorney at Law, and instrument that was duly inscribed in the Public Registry of Property and of Commerce under electronic mercantile folio number 23,327*10 as of the 22nd December 2006 and reason why it enjoys the personality and sufficient capacity to intervene in this present judicial act;


2. Its representative enjoys the faculties, powers and the sufficient necessary mandates in order to subscribe this present contract in representation of the ASSIGNEE as evinced in Public Writ number 22,497 granted on the 10th June 2008 before testimony of Elsa Ordóñez Ordóñez, Attorney at Law, applicant to the office of Public Notary and ascribed to Notary Public number 28 of the Morelos Judicial District, State of Chihuahua and acting in the stead per license of Felipe Colomo Castro, Title Holder, and instrument that was duly inscribed before the Public Registry of Property and Commerce of said District under electronic mercantile folio number 23,327*10 as of the 19th January 2008, and same (powers) that have not been restrained, limited, suspended or revoked to date, and;


3. The subscription of this present instrument does not imply any type of overly limitation of his powers, mandates or faculties having had the opportunity of submitting to the shareholders consideration of the ASSIGNEE the terms and conditions related with this present business and its formalization having been duly approved under the terms of its own statutory regime.


4. It is duly inscribed in the Federal Taxpayers Registry with fiscal identification number AMM.061204-4R7, and being to date even in its tax payments and other contributions that have corresponded in agreement with the applicable and current legislation on the matter,


5. It is his will to subscribe this present contract with the purpose of decreasing the price agreed on in the CONTRACT which later modified by the AGREEMENT and so be in the possibility of finishing with the obligations of payment due to him relative to established businesses regarding the CONCESSIONS with the PRINCIPAL.



III.

Both PARTIES declare through their respective legal representatives under oath of stating the truth that they acknowledge the personality both hold in addition to assisting to the subscription of this present contract in good faith, being free of guile, ill faith, harm, violence or any other vitiation in their consent with the purpose of committing themselves in accordance to the following:





3



CLAUSES


FIRST. ADVANCED TERMINATION: By virtue of the subscription of this present agreement, for all legal purposes that may take place, PARTIES expressly convene that, effective as of the date of this present writing, the current duration of any pending obligation between them  be terminated in advance in conformity with the CONTRACT and the AGREEMENT inasmuch as the majority of the obligations due it have been honored and satisfactorily complied with, including those of pecuniary nature, and that pending obligations have become not indispensable for the development of the mining project object of the operation.


SECOND.  MUTUAL SETTLEMENT. Derived from the agreed upon as per the foregoing clause, PARTIES expressly agree, for all legal purposes that may take place, in granting to each other the widest berth termination that proceeds by law regarding the totality of acts, omissions and conducts of any kind or nature that their representatives, administrators, shareholders, proxies, mandatories, employees, executives, agents, consultants and advisors, either past as present or future have carried out to date in relation with the execution of the CONTRACT and of the AGREEMENT, or of any other agreements written or verbal related with the object of said instrument, both PARTIES acknowledging that to date there does not exist a right or an obligation derived from same left pending, and surrendering in consequence, as of this moment, to promote any kind of action by any jurisdiction or possible competence against each other or of the subjects described, in the understanding that is one them should not comply with such an obligation, this present instrument will constitute the total and absolute liberation  regarding the non compliances or responsibilities that might be alleged against them, both PARTIES stating their satisfaction to the relationship being terminated on this date.


THIRD. TOTALITY OF THE CONTRACT: TOTALITY OF THE CONTRACT: PARTIES accept that this agreement, including the CONTRACT and the AGREEMENT contains the totality of the agreements between them regarding its object, subsisting in all matters not opposed, and leaving without any effect as well as canceling the whole of agreements, information, negotiations, correspondence, commitments and communications carried out before between them either in writing or verbally related.


FOURTH. APPLICABLE LAW: This present instrument will abide and will be interpreted in agreement with the applicable and current legal dispositions in the United States of Mexico among which are included the Mining Law, its Ruling, the Code of Commerce and the Federal Civil Code.


FIFTH. JURISDICTION: PARTIES expressly agree go submit any controversy that may arise same regarding the interpretation and execution of this present agreement before the jurisdiction of the competent courts of law of the Morelos Judicial District at the city of Chihuahua, State of Chihuahua, and surrendering as of this moment any other jurisdiction or privilege that might correspond to them by reason of their present or future addresses or by any other circumstance.






4



BOTH PARTIES IN THE KNOWLEDGE OF THE CONTENT AND LEGAL REACH OF THIS PRESENT WRITING SIGN IT IN AGREEMENT EACH OF ITS PAGES BEING TOGETHER IN THE CITY OF CHIHUAHUA, STATE OF CHIHUAHUA, ON THE ELEVENTH MARCH TWO THOUSAND ELEVEN.



The PRINCIPAL


Signature

HÉCTOR MANUEL

CERVANTES SOTOR

Per his own right

The ASSIGNEE


Signature

AMERICAN METAL MINING

S. A. DE C. V.

Represented in this act by:

RAMIRO TREVIZO GONZÁLEZ








5


EX-10.2 3 f102acquisitionagreementcent.htm ACQUISITION AGREEMENT ??? CENTENARIO???S TECHNICAL DATA Exhibit 10.2

SALES PURCHASE CONTRACT OF TECHNICAL INFORMATION ON MINING PROSPECTING SUBSCRIBED BY A) BY HÉCTOR MANUEL CERVANTES SOTO IN HIS CHARACTER AS SOLE ADMINISTRATOR AND LEGAL REPRESENTATIVE (THE VENDOR) AND B) TARA MINERALS CORP., REPRESENTED IN THIS ACT BY RICHARD BISCAN, JR., IN HIS CHARACTER AS LEGAL REPRESENTATIVE, JOINTLY NAMED THE PARTIES, AND ALSO APPEARING AMERICAN METAL MINING, S. A. DE C. V., REPRESENTED IN THIS ACT BY RAMIRO TREVIZO GONZÁLEZ IN HIS PERSONALITY AS GENERAL PROXY (AMM) IN ACCORDANCE WITH THE FOLLOWING PREVIOUS RECORDS, DECLARATIONS AND CLAUSES.



PREVIOUS RECORDS



I.

The VENDOR is in ownership of certain technical information related with the mining project under the name of El Centenario (the INFORMATION) same that is integrated in the 9 (nine) mining concessions described following and whose title holding to date belongs to AMM (the CONCESSIONS).


1

Lot:

EL MONO

Title:

229,013

File:

095/12649

Surface:

100.000 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

26th February 2007.

Duration::

From 27th February 2007

To 26th February 2057.

Inscription data:

Act 114, pages 57, of Volume 362 of the Book of Mining Concession of the Public Registry of Mines.










1

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


2

Lot:

REYNA

Title:

229,014

File:

095/12650

Surface:

100.000 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

26th February 2007.

Duration::

From 26th  February 2007

To 26th February 2057.

Inscription data:

Act 114, pages 57, of Volume 362 of the Book of Mining Concession of the Public Registry of Mines.


3

Lot:

CENTENARIO

Title:

229,015

File:

095/12651

Surface:

400.000 Hectares.

Location:

Municipality of Choix,

Estado de Sinaloa.

Date of issuance:

26th February 2007

Duration::

From 27th February 2007

To 26th  february 2057.

Inscription data:

Act 115, pages 58, of Volume 362 of the Book of Mining Concession of the Public Registry of Mines.


4

Lot:

LA VERDE

Title:

230,121

File:

095/12657

Surface:

400.0000 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

19th July 2007

Duration::

From20th July 2007

To 19th July 2057.

 

 



2

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


Inscription data:

Act 141, pages 101 of Volume 365 of the Book of Mining Concession of the Public Registry of Mines


5

Lot:

EL MONO

Title:

231,261

File:

095/12683

Surface:

200.000 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

24th January 2007.

Duration::

From 25th January 2007

To 24th January 2058.

Inscription data:

Act 201, pages 101, of Volume 368 of the Book of Mining Concession of the Public Registry of Mines.


6

Lot:

EL SOL

Title:

231,262

File:

095/12690

Surface:

200.000 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

24th January 2008.

Duration::

From 25th January 2008

To 24th January 2058.

Inscription data:

Act 202, pages 101, of Volume 368 of the Book of Mining Concession of the Public Registry of Mines.


7

Lot:

EL ORO

Title:

234,184

File:

095/12876

Surface:

579.1794 Hectares.

 

 



3

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

4TH June 2009.

Duration::

From 5th June 2009

To 6th June 2059.

Inscription data:

Act 244, pages 122, of Volume 376 of the Book of Mining Concession of the Public Registry of Mines.


8

Lot:

SANALOYA

Title:

235,307

File:

095/12906

Surface:

200.000 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

5th November 2009.

Duration::

From 6th November 2009

To 5th November 2059.

Inscription data:

Act 287, pages 144, of Volume 379 of the Book of Mining Concession of the Public Registry of Mines.


9

Lot:

SANALOYA FRACCIÓN A

Title:

235,308

File:

095/12906

Surface:

3.7305 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

5th November 2009.

Duration::

From 6th November 2009

To 5th November 2059.

Inscription data:

Act 288, pages 144, of Volume 379 of the Book of Mining Concession of the Public Registry of Mines.





4

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


II.

For purposes of clarity and certainty, a detailed description of the INFORMATION is attached to this script as Annex I.


IV.

It being that the PURCHASER is the owner of 99.99 % (ninety nine point ninety nine per cent) of the social capital of AMM, and considering that the INFORMATION is necessary for the adequate prospection and promotion of the CONCESSIONS, in recent days past the VENDOR stated his will to acquire such percentage.


V.

The VENDOR considered the PURCHASERS proposition as viable and convenient to his interest, and;


VI.

Having had the opportunity of agreeing regarding terms and conditions included in this present contract, PARTIES decided to go ahead in its preparation and subscription for purposes of clarity and certainty.


DECLARATIONS


I.

The VENDOR declares per his own right and under oath of stating the truth, that:


1. To be a Mexican citizen in complete use of his mental and physical abilities, reason why he enjoys the full capacity to subscribe this present contract;


2. To be the legitimate owner of the INFORMATION.


3. To date there does not exist a contract or additional agreement that includes as its object the INFORMATION directly or indirectly and reason why the subscription of this present instrument does not imply non compliance on the part of the VENDOR to engagements previously acquired, nor the affectation of any rights previously granted in favor of third parties, and condition that warrants as of this moment in favor of the PURCHASER for all legal purposes that may arise, and;


4. It is his will to sell in favor of the PURCHASER the totality of the INFORMATION agreeing in all to the terms and conditions of this present contract.





5

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


II.

The PURCHASER declares through the offices of its legal representative and under oath of stating the truth, that:


1. It an American corporation duly established and operating in agreement with the applicable legislation of its place of constitution and residence, and reason why it enjoys the necessary capacity and sufficient personality to intervene in this present judicial act;


2. Its representative enjoys all faculties, powers and the sufficient and necessary mandates to subscribe this present contract in representation of the PURCHASER, and same that have not been limited, restrained, suspended or revoked a to date.


3. As has been established, to date he is the owner of 99.99 % (ninety nine point ninety per cent) of the social capital of AMM, and;


4. Because it so is convenient to his interest regarding the CONCESSION, it is his will to acquire from the VENDOR the totality of the INFORMATION heeding in all with the terms and conditions of this present contract.



III.

AMM declares through the offices of its legal representative and under oath of stating the truth, that:


1. It is a Mexican Mercantile Society, specifically a Stock Company with Varying Amount of Capital, duly established and operating in agreement with the applicable and current legislation of the United Mexican States, just as proven by Public Writ number 17, 227 granted on the 4th December 2006 before testimony of Eugenio Fernando García Russek, applicant to the office of Notary Public and ascribed to Public Notary number 28 of the Morelos Judicial District, State of Chihuahua and acting in the stead per license of the Offices Title Holder, Felipe Colomo Castro, Attorney at Law, and instrument that was duly inscribed in the Public Registry of Property and of Commerce under electronic mercantile folio number 23,327*10 as of the 22nd December 2006 and reason why it enjoys the personality and sufficient capacity to intervene in this present judicial act;


2. Its representative enjoys the faculties, powers and the sufficient and necessary mandates in order to subscribe this present



6

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


       contract in representation of AMM as evinced in Public Writ number 22,497 granted on the 10th June 2008 before testimony of Elsa Ordóñez Ordóñez, Attorney at Law, applicant to the office of Public Notary and ascribed to Notary Public number 28 of the Morelos Judicial District, State of Chihuahua and acting in the stead per license of Felipe Colomo Castro, Title Holder, and instrument that was duly inscribed before the Public Registry of Property and Commerce of said District under electronic mercantile folio number 23,327*10 as of the 19th January 2008, and same (powers) that have not been restrained, limited, suspended or revoked to date, and;


3. It is its will to appear for the subscription of this present contract with the specific purpose of granting in guarantee in favor of the VENDOR the rights derived from the CONCESSIONS, heeding in all with the terms and conditions included as follows.



IV.

Both PARTIES declare, as likewise AMM, through the offices of their respective legal representatives, under oath of stating the truth that they assist to the subscription of this present document in good faith, free of any guile, of whatever other vitiation in their consent with the purpose of committing themselves to the following:


CLAUSES



FIRST. OBJECT: By virtue of the subscription of this contract, the VENDOR commits itself to sell and in this same act sells in favor of the PURCHASER the whole of the INFORMATION directly related with the mining project under the name of Centenario, integrated to date by the CONCESSIONS. On its part, the PURCHASER commits itself to buy and in this same act buys from the VENDOR the object described, committing itself to pay the certain and determined price described in the coming clause.


SECOND. PRICE: For the sale of the INFORMATION, the PURCHASER commits itself to pay in favor of the VENDOR the total amount of $932,200.00 Dollars (Nine thousand thirty two and two hundred Dollars 00/100 in currency of the United States of America). (The PRICE).




7

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


THIRD: MANNER, TIME AND PAYMENT OF PRICE. PARTIES agree that the PRICE be paid in the following manner and on the dates stipulated:


1. On the date of signature of this present contract, a cash amount of $50,000.00 Dollars (Fifty thousand Dollars 00/100 in United States Currency).


2. As of the 30th day of the signature of this contract a cash amount of $50,000.00 Dollars (Fifty thousand Dollars 00/100 in United States Currency).


3. On the date of signature of this present contract, the amount of $832,200 Dollars (Eight thousand thirty two and two hundred Dollars 00/100 in United States currency) through the issuance and delivery in favor of the VENDOR within the following 15 (fifteen) able days the amount of 416,100 (four hundred sixteen thousand and one hundred) PURCHASERS common shares, that is, Tara Minerals Corp., (TARM), same that will be issued being subject to Rule 144 of the Securities Act of 1933 of forceful application to the stock market where the described shares are quoted among other applicable and current legal dispositions (the SHARES).


The cash amount described in foregone numerals 1 to 2 will be delivered in favor of the VENDOR by means of check issued against a financial institution holding address in the United States of America.


Regarding the SHARES, it is expressly convened that the corresponding title will be delivered in favor of the VENDOR as soon as possible once the corresponding issuing paper work is completed before the respective stock authority.


The VENDOR accepts that the SHARES may be exercised and, consequently sold in the corresponding stock market within a time term of 6 (six) months as of the date of issuance and delivery of the respective title in its favor.


On its part, the PURCHASER commits itself to guarantee in this act and guarantees that the SHARES stock value at the date of their exercise and sale by the VENDOR must be $2.00 Dollars (Two Dollars 00/100 in United States Currency) each.


It is expressly agreed that in the event the stock value of the SHARES at the date of their exercise and sale on the part of the VENDOR be less



8

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


than $2.00 Dollars, (two Dollars 00/100 United States Currency), each, the PURCHASER will issue in favor of the VENDOR the amount of shares required that, derived from their sale, this latter may effectively collect the total amount of $832,200.00 Dollars (eight hundred thousand thirty two and two hundred Dollars 00/100 in United States Currency), same that will be issued subject to Rule 144 of the Securities Act of 1933, of forceful application in the stock market in which the described shares are quoted, among other applicable and current legal dispositions.


On the contrary, it is likewise expressly agreed that in the event the stock value of the SHARES at the date of their exercise and sale on the part of the VENDOR be higher than $2.00 Dollars (two Dollars 00/100 in United States Currency), each, this latter must return to the PURCHASER the corresponding difference as the intention of the issuance of SHARES in its favor is to cover for, exclusively, the total amount of $832,200.00 Dollars (eight hundred thousand thirty two and two hundred Dollars 00/100 in United States Currency).


Finally, the PARTIES agree that the VENDOR will be the only responsible party of instituting the paper work for the sale of the SHARES at its opportune time, assuming the respective cost, and notifying in all opportunity the PURCHASER of the corresponding stock value in order to proceed, under the terms of the foregoing paragraphs, without injury of respecting the right of preference foreseen in the following Sixth Clause.


FOURTH. DELIVERY OF INFORMATION: The VENDOR delivers on this same date in favor of the PURCHASER the totality of the INFORMATION adequately supported and backed regarding its nature.


Consequently, the VENDOR commits itself to keep in total confidence as of this date anything regarding the INFORMATION as well as to destroy the total back up and support that he keeps in his possession regarding same.


FIFTH: GUARANTEE:  With the purpose of guaranteeing the validity and stock situation of the SHARES, by virtue of the subscription of the contract, AMM constitutes a specific guarantee in favor of the VENDOR regarding 100 % (one hundred per cent) of the rights he holds to date derived from the CONCESSIONS.


The VENDOR expressly accepts to acknowledge the reach of the described guarantee. Consequently, for as long as the SHARES remain



9

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


valid and are legally recognized by the corresponding stock market, and same can be exercised and sold after the time term of the 6 (six) months previously indicated, it will be understood that the obligation of payment on the part of the PURCHASER will  have been satisfied to its fullest extent. Thus, the PURCHASER will not be held responsible due to the impossibility of the sale of the SHARES in the stock market for reasons attributable to the VENDOR or to any other person related to it, but only upon the validity, legality and stock situation of the SHARES as has been established.


SIXTH. RIGHT OF PREFERENCE: By virtue of the subscription of this contract, the VENDOR grants in favor of the PURCHASER a right of preference to acquire 100 % (one hundred per cent) of the SHARES, once these can be legally exercised and sold in the corresponding stock market.


For such a purpose, the VENDOR commits itself as of this moment to notify in writing and in all opportunity to the PURCHASER of its intention of selling part or the totality of the SHARES. The PURCHASER will enjoy a time term of 30 (thirty) natural days to exercise the described right. In the event the PURCHASER decides not to exercise his right of preference or simply does not answer in writing the VENDORS notification of this latters intention of sale within the described time term, he will be free to go ahead and sell the SHARES in the corresponding stock market, heeding to the adjustment process of amount of shares and guaranteed price per share described in the above Third Clause.


SEVENTH. CONFIDENTIALITY: PARTIES expressly commit themselves to keep in a confidential character the totality of past, present and future information related with this instrument and extending such an obligation to whomever it is disclosed to either private or corporate.


The PARTY recipient of confidential information must limit the access to it to its representatives and employees who, under a justified and reasonable cause, should request access to it. In such an event, PARTIES should extend such confidentiality obligations to whom such confidential information is disclosed to.


For purposes of this present clause, the following will not be considered confidential information: 1. Information legitimately known and obtained by the recipient PARTY previously to the subscription of this agreement; 2. Information that to date is or in the future shall be



10

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


considered as of public domain if and ever such consideration does not derived from the incompliance by any of the individuals it was revealed to, or; 3. Information that must be disclosed to per law or administrative or judicial mandate issued by competent authorities including those of the stock market.


PARTIES agree that the duration of these contracted obligations by virtue of this present clause will subsist indefinitely, even after this present instrument comes to an end.


EIGHTH. NON COMPLIANCE AND ANNULMENT:  PARTIES agree that, in case any of them does not comply with any of the obligations assumed by virtue of the subscription of this present instrument, these latter will enjoy the right to enforce compliance to the obligations not complied with, on one hand or the annulment of this present contract on the other as well as to request an indemnity payment for harms and damages, in both cases.


The above without impairing the specific possible guarantee granted in favor of the VENDOR under the terms of the above written Fifth Clause.


NINTH. ADDRESSES AND CONTACT TELEPHONES: PARTIES convene in stating as their addresses and contact telephones for anything related to the execution and compliance to the terms and conditions of this present instrument, as well as to render notifications, announcements and other communications related to same, the following:


VENDOR:


PURCHASER:

Av. Independencia 2812

Col. Santa Rosa, C. P. 31050

Ciudad de Chihuahua, Chihuahua.

Phone : 52-614-415-1971

2162 Acorn Court

Wheaton, C. P. 60187

Illinois, E. U. A.


Phone: 01-630-462-0493


AMM:


Calle California 5101, Local 206

Edificio Ejecutivo Vértice

Col. Hacienda de Santa Fe, C. P. 31214

Ciudad de Chihuahua, Chihuahua.


Phone: 52-614-200-8483




11

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


In the case of a change of address or contact telephone, the PARTIES agree in letting their counterpart know of such a circumstance at least 5 (five) natural days prior of the date in which the change will effectively take place.


TENTH. ANNOUNCEMENTS, NOTIFICATIONS AND COMMUNICATIONS: PARTIES agree that any announcement, notification or communication necessary to be made known to its counterpart must be done so in writing.


Sending of such documents can be carried out by two means: 1. Per ordinary courier delivered on hand or by certificate mail, both with acknowledgement of receipt, or; 2. By Electronic mail. In this latter case, sending will only be considered valid and legally carried out when reception of the respective electronic mail is electronically confirmed within the following 3 (three) natural days of its being sent through an answering message and confirmation sent by the addressee.


ELEVENTH: CONTACT PERSONNNEL: PARTIES agree in that the totality of announcements, notifications and communications necessary to be issued derived from the terms and conditions of this present instrument must be addressed indistinctly to the following persons:


VENDOR:


PURCHASER:

HÉCTOR MANUEL CERVANTES SOTO

AGUSTÍN CERÓN GUEDEA


RICHARD BISCAN JR.


AMM:


RAMIRO TREVIZO LEDEZMA

RAMIRO TREVIZO GONZÁLEZ


In case it is their will to change contact persons, PARTIES agree in letting their counterpart know of such a circumstance at least 5 (five) natural days previously of the date in which the change will effectively take place. Not complying to this described obligation will imply that the announcements, notifications and communications sent and delivered to the name of the original addressees of the PARTY carrying out the change, will bear all legal effects in favor of the PARTY that was not notified in all opportunity as of the date of delivery and for as long as the non compliance lasts.



12

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


TWELFTH. TOTALITY OF THE CONTRACT: PARTIES accept that this agreement contains the totality of the agreements between them regarding its object and leaving without any effect as well as canceling the whole of agreements, information, negotiations, correspondence, commitments and communications carried out before between them either in writing or verbally related.


THIRTEENTH. SEPARATE IDENTITIES: PARTIES and AMM expressly agree that this present contract will be considered as subscribed and valid for all legal purposes that may arise even same be signed in separate by each, and the consent and the corresponding granting will simply be acknowledged per means of the reception of any electronic means of an ordinary copy of the instrument duly signed without impairment that afterwards it be integrated as one single copy with the autograph signature of the PARTIES and AMM for formality purposes.


FOURTEENTH. APPLICABLE LAW: This present instrument will abide and will be interpreted in agreement with the applicable and current legal dispositions in the United States of Mexico.


FIFTEENTH. JURISDICTION: In case any controversy may arise related with the validity, intention, interpretation, execution or compliance of this contract, PARTIES expressly agree go submit same before the competent courts of law of the Morelos Judicial District at the city of Chihuahua, State of Chihuahua, and surrendering as of this moment any other jurisdiction or privilege that might correspond to them by reason of their present or future addresses or by any other circumstance.


THE PARTIES IN THE KNOWLEDGE OF THE WORTH AND LEGAL REACH OF THIS PRESENT CONTRACT, SUBSCRIBE IT AT THE PLACES AND DATES INDICATED FOR SUCH A PURPOSE.



VENDOR:

PURCHASER:

HÉCTOR MANUEL CERVANTES SOTO

Per his own right:


Locality: Chih., Chih.

Date: 14th March 2011

TARA MINERALS CORP.,

Represented in this act by:

RICHARD BISCAN JR.


Locality:

Date:






13

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


AMM:

(AMERICAN METAL MINING, S.A. DE C. V.)

Represented in this act by:

RAMIRO TREVIZO GONZÁLEZ

Locality: Chih., Chih.

Date: 14th March 2011






14

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.

EX-10.3 4 f103acquisitionagreementlapa.htm ACQUISITION AGREEMENT ??? LA PALMA Exhibit 10.3

TRANSFER OF MINING RIGHTS CONTRACT SUBSCRIBED BY, A) CORPORACIÓN KEDAH, S. A. DE C. V., REPRESENTED IN THIS ACT BY HÉCTOR MANUEL CERVANTES SOTO IN HIS CHARACTER AS SOLE ADMINISTRATOR AND LEGAL REPRESENTATIVE (THE PRINCIPAL), AND B) AMERICAN METAL MINING, S. A. DE C. V., REPRESENTED IN THIS ACT BY RAMIRO TREVIZO GONZÁLEZ IN HIS CHARACTER AS GENERAL PROXY (THE ASSIGNEE), JOINTLY NAMED THE PARTIES IN ACCORDANCE WITH THE FOLLOWING PREVIOUS RECORDS, DECLARATIONS AND CLAUSES:



PREVIOUS RECORDS



I.

The PRINCIPAL is the legitimate owner of 100 % of the mining rights from the 6 (six) concessions described following (the CONCESSIONS)

1

Lot:

LA VERDE 3

Title:

230,341

File:

095/12614

Surface:

110.1261 Hectares

Location:

Municipality of Choix

State of Sinaloa.

Date of issuance:

15th August 2007.

Duration:

From 16th August 2007

To 15th August 2057.

Inscription data:

Act 1, pages 1, of Volume 366 of the Book of Mining Concessions of the Public Registry of Mines.


2

Lot:

LA VERDE 4

Title:

233,630

File:

095/13139

Surface:

396.9300 Hectares

Location:

Municipality of Choix

State of Sinaloa.

Date of issuance:

26th March 2009.

 

 



1




Duration:

From 27th March 2009

To 26th March 2059.

Inscription data:

Act 50, pages 25, of Volume 375 of the Book of Mining Concessions of the Public Registry of Mines.


3

Lot:

LA VERDE 6

Title:

233,738

File:

095/12953

Surface:

412.7720 Hectares

Location:

Municipality of Choix

State of Sinaloa.

Date of issuance:

7th April 2009.

Duration:

From 8th April 2009

To 7th April 2059.

Inscription data:

Act 158, pages 79, of Volume 375 of the Book of Mining Concessions of the Public Registry of Mines.


4

Lot:

EL PINO

Title:

233,203

File:

095/12913

Surface:

400.0000 Hectares

Location:

Municipality of Choix

State of Sinaloa.

Date of issuance:

17th December 2008.

Duration:

From 18th December 2008

To 17th December 2058.

Inscription data:

Act 343 pages 172, ofl Volume 373 of the Book of Mining Concessions of the Public Registry of Mines.


5

Lot:

CHOIX

Title:

236,500

File:

095/13283

 

 



2




Surface:

496.3632 Hectares

Location:

Municipality of Choix

State of Sinaloa.

Date of issuance:

5th July 2010.

Duration:

From 6th July 2010

To 5th July 2060.

Inscription data:

Act 40, pages 20, of Volume 383 of the Book of Mining Concessions of the Public Registry of Mines.


6

Lot:

LA PALMA

Title:

236,501

File:

095/13295

Surface:

287.8208 Hectares

Location:

Municipality of Choix

State of Sinaloa.

Date of issuance:

5th July 2010.

Duration:

From 6th July 2010

To 5th July 2060.

Inscription data:

Act 41, pages 20, of Volume 383 of the Book of Mining Concessions of the Public Registry of Mines.


II.

The ASSIGNEE is interested in that the PRINCIPAL transfers in his favor the totality of the rights derived from the CONCESSIONS paying in exchange a certain price under the terms of the following clauses.


III.

In days past, PARTIES had the opportunity of agreeing regarding the terms and conditions included in this present contract and so proceeded to the preparation and subscription of same for formality and certainty purposes.

 

DECLARATIONS


I.

The PRINCIPAL declares through his legal representative and under oath of stating the truth:




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      1.Being a Mexican Mercantile Society, specifically a Stock Company with Varying Amount of Capital, duly established and operating in agreement with the applicable and current legislation of the United Mexican States, as evinced in Public Writ number 11,750, granted on the 23rd July 2009 before testimony of Jorge Mazpúlez Pérez, Attorney at Law and Public Notary number 14 for the Morelos Judicial District in the city of Chihuahua, State of Chihuahua and instrument that was duly inscribed in the Public Registry of Property and Commerce of said District under electronic mercantile folio number 25,362*10 of 18th August 2009 and reason why it enjoys the sufficient and necessary capacity to intervene in this present judicial act:


2. Its representative enjoys all faculties, powers and sufficient and necessary mandates to subscribe this present contract in representation on the PRINCIPAL, as evinced in the instrument described in the above indicated numeral, and same that have not been limited, restrained, suspended or revoked a to date.


3. It is duly inscribed in the Federal Taxpayers Registry with fiscal identification number CKE-090723 and being to date current in his income tax payments that have corresponded in accordance with the applicable and current fiscal legislation.


6. To date he has complied in full with the obligations that the applicable and current legislation imposes on title owners of administrative authorizations such as the CONCESSIONS inclusive of the corresponding payment of rights as dictated by the Federal Law of Rights, and reason why the corresponding mining rights are current to date and in good legal standing;


7. The CONCESSIONS own lots are in good condition taking into consideration that during the mining activities carried out on same to date compliance to the applicable legal dispositions in mining matters has been met as well as environmental and of whatever other nature.


8. The landmarks that indicate the location of the starting point of the CONCESSIONS own lots are in good conservation conditions as they were built and up kept in compliance with the applicable and current legal disposition;


9. To date there does not exist contract or additional current agreement that includes as its object the CONCESSIONS, either



4



directly or indirectly, and so the subscription of this present instrument does not imply non compliance of any kind on the part of the PRINCIPAL to commitments previously agreed to nor does it affect any rights previously granted in favor of any third party, situation that guarantees as of this moment in favor of the ASSIGNEE for all legal purposes that may arise;



10. He acknowledges having received from the ASSIGNEE in the past and prior to the subscription of this present contract, the amount of $50,000.00 Dollars (Fifty thousand Dollars 00/100 in United States Currency) as an advance on the price agreed upon in the forthcoming clause (the ADVANCE), and;


11. It is his will to transfer in total, definitely and onerously in favor of the ASSIGNEE 100 % (one hundred per cent) of the mining rights derived from the CONCESSIONS, heeding in every instance to the terms and conditions of this present contract.


II.

The ASSIGNEE declares through the offices of his legal representative and under oath of stating the truth, that:


1. Being a Mexican Mercantile Society, specifically a Stock Company with Varying Amount of Capital, duly established and operating in agreement with the applicable and current legislation of the United Mexican States, just as proven by Public Writ number 17, 227 granted on the 4th December 2006 before testimony of Eugenio Fernando García Russek, applicant to the office of Notary Public and ascribed to Public Notary number 28 of the Morelos Judicial District, State of Chihuahua and acting in the stead per license of the Offices Title Holder, Felipe Colomo Castro, Attorney at Law, and instrument that was duly inscribed in the Public Registry of Property and of Commerce under electronic mercantile folio number 23,327*10 as of the 22nd December 2006 and reason why it enjoys the personality and sufficient capacity to intervene in this present judicial act;


2. Its representative enjoys the faculties, powers and sufficient and necessary mandates in order to subscribe this present contract in representation of the ASSIGNEE, just as evinced in Public Writ number 22,497, granted on the 10th June 2008 before testimony of Elsa Ordóñez Ordóñez, Attorney at Law, applicant to the exercise of Notary Public and ascribed to Public Notary number 28 of the Morelos Judicial District and acting per license of the



5



Offices Title Holder, Felipe Colomo Castro, and instrument that was duly inscribed in the Public Registry of Property and Commerce of the mentioned Judicial District under electronic mercantile folio number 23,327*10 as of the 19th June 2008, and same that have not been restrained, limited, suspended or revoked to date;


3. The subscription of this present contract does not imply any transgression of its powers, mandates or faculties as it has had the opportunity of submitting the terms and conditions related with this present business to the consideration of the ASSIGNEES shareholders and was approved for its formalization under the terms of its own statutory regime:


4. It is duly inscribed in the Federal Taxpayers Registry with identification fiscal number AMM-061204-4R7, and being to tax current in its income tax payments and other contributions that might have corresponded in conformity with the applicable and current legislation  on such a matter;


5. Within its social objective there is the possibility of becoming title holder of all kinds pf mining rights, as well as to be able to acquire them onerously as is the case of the documented operation by virtue of this present instrument;


6. It is properly registered in the Public Registry of Mines, specifically in the Book of Mining Societies, and;


7. It is his will that the PRINCIPAL transfers in total, definitely and onerously in his favor 100 % (one hundred per cent) of the mining rights derived from the CONCESSIONS, paying in exchange the price agreed upon in the forthcoming clauses, and heeding in every instance to the terms and conditions of this present contract.



III.

Both PARTIES declare through the office of their legal representatives, under oath of stating the truth that they assist to the subscription of this present document in good faith, free of any deceit, error, violence or any other vitiation in their consent with the purpose of committing themselves to the following:



CLAUSES



6



FIRST. OBJECT: In agreement with articles 2,020 and 2,248 of the Federal Civil Code, of complementary application and agreeing with article 23, last paragraph of the Mining Law,  as well as by article 2 (two) of the Code of Commerce, by virtue of the subscription of this present contract, the PRINCIPAL transfer in whole, definitely and onerously in favor of the ASSIGNEE, free of burden, attachment, lien or limitation in their domain, 100 % (one hundred per cent) of the mining rights derived from the CONCESSIONS, receiving in exchange as counterclaim the certain and determined price described in the forth coming clauses


SECOND. COUNTERCLAIM: As counterclaim for the transfer described, the ASSIGNEE commits himself to pay in favor of the PRINCIPAL the amount of $80,000.00 Dollars (Eighty thousand Dollars in United States Currency 00/100 plus the corresponding Added Value Tax, that is, a sum total of $92,800.00 Dollars (Ninety two thousand and eight hundred Dollars 00/100 National Currency (the PRICE), heeding in every instance to the terms and conditions agreed upon in this instrument.


THIRD. MANNER, TIME AND PLACE OF PAYMENT: Considering the amount of the ADVANCE delivered by the ASSIGNEE in favor of the PRINCIPAL prior to the date of the subscription of this contract and set at the amount of $50,000.00 Dollars (Fifty thousand Dollars 00/100 in United States currency) PARTIES agree that the remaining balance of the PRICE, set at an amount of $42,800.00 Dollars (Forty two thousand and eight hundred Dollars 00/100), be delivered in favor of the PRINCIPAL upon the 30th day from the date of this present instrument, that is, at the latest on the 1st April 2011, complying thus with the payment of the total amount of the PRICE under the terms of the previous clause.


The described balance pending will be delivered in favor of the PRINCIPAL through nominal check for deposit in bank account, precisely at the conventional address determined by the ASSIGNEE for such a purpose.


FOURTH. PROOF OF PAYMENT: Against the totality of payment obligations carried out by the ASSIGNEE in agreement with this present contract, the PRINCIPAL obliges himself to issue and deliver within the following 5 (five) natural days as of the effective date of the corresponding payment, a voucher fulfilling all tax requirements required by the applicable and current fiscal legislation at such instant.




7



FIFTH. REPARATON IN CASE OF EVICTION: The PRINCIPAL obliges himself to repair in favor of the ASSIGNEE in case of eviction from the CONCESSIONS in accordance with article 2,283.III of the Federal Civil Code among other applicable legal dispositions.


SIXTH. ADMINISTRATIVE OBLIGATIONS: The ASSIGNEE expressly commits himself to maintain the CONCESSIONS up dated heeding for such a purpose with the paper work and payment of the corresponding rights, and subjecting himself to the general dispositions and official Mexican standards of the Mining and Metallurgical Industry in conformity with article 27 of the Mining Law, among others applicable, its Ruling and other applicable and current legislation,


SEVENTH. FORMALIZATION OF THE TRANSFER OF RIGHTS: PARTIES commits themselves to ratify before Public Notary or Public Broker this present document as soon as possible with the purpose it be inscribed in the Public Registry of Mines, a dependency of the Secretary of the Economy and to go ahead with the promotion of whatever other administration paper work required by articles 2,034, fraction III of the Federal Civil Code; 46, fraction VI and 47 of the Mining Law; 83, last paragraph of the Mining Laws ruling and other applicable and current legislation. The totality of expenses related with the compliance of these stated obligations in this clause will be taken over by the ASSIGNEE.


EIGHTH. FISCAL OBLIGATIONS: On being registered before the Federal Taxpayers Registry as well as being to date in their income tax payments and other corresponding contributions to date, PARTIES agree that each will cover in separate tax payments that correspond individually to each in compliance to the terms and conditions of this present instrument and heeding the applicable and current fiscal legislation, committing themselves to safe keep their counterpart regarding any fiscal responsibility that might be imputed in violation to this Clause by any competent authority.


NINTH. ADDRESSES AND CONTACT TELEPHONES: PARTIES agree in stating as their addresses and contact telephones for anything referring to the execution and compliance to the terms and conditions of this present instrument, as well as to carry out announcements, notification and other communications in relation with same, the following:


 

 



8




PRINCIPAL:


ASSIGNEE:

Av. Independencia 2812

Col. Santa Rosa, C. P. 31050

Ciudad de Chihuahua, Chihuahua.



Tel: 01-614-415-1971

Calle California 5101, Local 206

Edificio Ejecutivo Vértice

Col. Hacienda de Santa Fe, C. P. 31214

Ciudad de Chihuahua, Chihuahua.


Tel: 01-614-200-8483




TENTH. ANNOUNCEMENTS, NOTIFICATIONS AND COMMUNICATIONS: PARTIES agree that any announcement, notification or communication necessary to be made known to its counterpart must be done so in writing.


Sending of such documents can be carried out by two means: 1. Per ordinary courier delivered on hand or by certificate mail, both with acknowledgement of receipt, or; 2. By Electronic mail. In this latter case, sending will only be considered valid and legally carried out when reception of the respective electronic mail is electronically confirmed within the following 3 (three) natural days of its being sent through an answering message and confirmation sent by the addressee.

ELEVENTH. CONTACT PERSONNNEL: PARTIES agree in that the totality of announcements, notifications and communications necessary to be issued derived from the terms and conditions of this present instrument must be addressed indistinctly to the following persons:



PRINCIPAL:


ASSIGNEE:

HÉCTOR MANUEL CERVANTES SOTO

AGUSTÍN CERÓN GUEDEA

RAMIRO TREVIZO LEDEZMA

RAMIRO TREVIZO GONZÁLEZ


TWELFTH.  TOTALITY OF THE CONTRACT: PARTIES accept that this agreement contains the totality of the agreements between them regarding its object and leaving without any effect as well as canceling the whole of agreements, information, negotiations, correspondence, commitments and communications carried out before between them either in writing or verbally related.




9



THIRTEENTH. APPLICABLE LAW: This present instrument will abide and will be interpreted in agreement with the Mining Law, its Ruling and the Federal Civil Code among other applicable and current legal dispositions in the United States of Mexico.


FOURTEENTH. JURISDICTION: In case any controversy may arise related with the validity, intention, interpretation, execution or compliance of this contract, PARTIES expressly agree go submit same before the competent courts of law of the Morelos Judicial District at the city of Chihuahua, State of Chihuahua, and surrendering as of this moment any other jurisdiction or privilege that might correspond to them by reason of their present or future addresses or by any other circumstance.


THE PARTIES IN THE KNOWLEDGE OF THE WORTH AND LEGAL REACH OF THIS PRESENT CONTRACT, SUBSCRIBE BEING TOGETHER IN THE CITYOF CHIHUAHUA, STATE OF CHIHUAUHA ON THE 11th MARCH 2011


PRINCIPAL:


ASSIGNEE:

CORPORACIÓN KEDAH,

S. A. DE C. V.

Represented in this act by:

HÉCTOR MANUEL

CERVANTES SOTO.

AMERICAN METAL MINING,

S. A. DE C. V.

Represented in this act by:

RAMIRO TREVIZO GONZÁLEZ







10


EX-10.4 5 f104acquisitionagreementlapa.htm ACQUISITION AGREEMENT ???LA PALMA???S TECHNICAL DATA Exhibit 10.4

SALES PURCHASE CONTRACT OF TECHNICAL INFORMATION ON MINING PROSPECTING SUBSCRIBED BY A) CORPORACIÓN KEDAH, S. A. DE C. V., REPRESENTED IN THIS ACT BY HÉCTOR MANUEL CERVANTES SOTO IN HIS CHARACTER AS SOLE ADMINISTRATOR AND LEGAL REPRESENTATIVE (THE VENDOR) AND B) TARA MINERALS CORP., REPRESENTED IN THIS ACT BY RICHARD BISCAN, JR., IN HIS CHARACTER AS LEGAL REPRESENTATIVE, JOINTLY NAMED THE PARTIES, AND ALSO APPEARING AMERICAN METAL MINING, S. A. DE C. V., REPRESENTED IN THIS ACT BY RAMIRO TREVIZO GONZÁLEZ IN HIS PERSONALITY AS GENERAL PROXY (AMM) IN ACCORDANCE WITH THE FOLLOWING PREVIOUS RECORDS, DECLARATIONS AND CLAUSES.



PREVIOUS RECORDS



I.

The VENDOR is in ownership of certain technical information related with the mining project under the name of La Palma (the INFORMATION) same that is integrated in the 6 (six) mining lots described following and whose title holding belongs to AMM (the CONCESSIONS).


1

Lot:

LA VERDE 3

Title:

230,341

File:

095/12614

Surface:

110.1261 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

15th August 2007.

Duration::

From 16th August 2007

To 15th August 2057.

Inscription data:

Act 1, pages 1, of Volume 366 of the Book of Mining Concession of the Public Registry of Mines.








1

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


2

Lot:

LA VERDE 4

Title:

233,630

File:

095/13139

Surface:

396.9300 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

26th March 2009.

Duration::

From 27th March 2009

To 26th March 2059.

Inscription data:

Act 50, pages 25, of Volume 375 of the Book of Mining Concession of the Public Registry of Mines.


3

Lot:

LA VERDE 6

Title:

233,738

File:

095/12953

Surface:

412.7720 Hectares.

Location:

Municipality of Choix,

Estado de Sinaloa.

Date of issuance:

7 de abril de 2009.

Duration::

Del 8 de abril de 2009

al 7 de abril de 2059.

Inscription data:

Acta 158, a fojas 79, del Volumen 375 of the Book of Mining Concession of the Public Registry of Mines.


4

Lot:

EL PINO

Title:

233,203

File:

095/12913

Surface:

400.0000 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

17th December 2008.

Duration::

From18th December 2008

To 17th December 2058.

 

 



2

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


Inscription data:

Act 343, pages 172, of Volume 373 of the Book of Mining Concession of the Public Registry of Mines


5

Lot:

CHOIX

Title:

236,500

File:

095/13283

Surface:

496.3632 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

5th July 2010.

Duration::

From 6th July 2010

To 5th July 2060.

Inscription data:

Act 40, pages 20, of Volume 383 of the Book of Mining Concession of the Public Registry of Mines.


6

Lot:

LA PALMA

Title:

236,501

File:

095/13295

Surface:

287.8208 Hectares.

Location:

Municipality of Choix,

State of Sinaloa.

Date of issuance:

5th July 2010.

Duration::

From 6th July 2010

To 5th July 2060.

Inscription data:

Act 41, pages 21, of Volume 383 of the Book of Mining Concession of the Public Registry of Mines.


II.

For purposes of clarity and certainty, a detailed description of the INFORMATION is attached to this script as Annex I.


IV.

It being that the PURCHASER is the owner of 99.99 % (ninety nine point ninety nine per cent) of the social capital of AMM, and considering that the INFORMATION is necessary for the



3

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


       adequate prospection and promotion of the CONCESSIONS, in recent days past the VENDOR stated his will to acquire such percentage.


V.

The VENDOR considered the PURCHASERS proposition as viable and convenient to his interest, and;


VI.

Having had the opportunity of agreeing regarding terms and conditions included in this present contract, PARTIES decided to go ahead in its preparation and subscription for purposes of clarity and certainty.



DECLARATIONS


I.

The VENDOR declares through the offices of its legal representative and under oath of stating the truth, that:


1. It is a Mexican Mercantile Society, specifically a Stock Company with Varying Amount of Capital, duly established and operating in agreement with the applicable and current legislation of the United Mexican States, just as proven by Public Writ number 11,750, granted on the 23rd July 2009 before testimony of Jorge Mazpúlez Pérez, Attorney at Law and Public Notary number 14 for the Morelos Judicial District in the city of Chihuahua, State of Chihuahua and instrument that was duly inscribed in the Public Registry of Property and Commerce of said District under electronic mercantile folio number 25362*10 of as of the 18th August 2009 and reason why it enjoys the sufficient and necessary capacity to intervene in this present judicial act:


2. Its representative enjoys all faculties, powers and the sufficient and necessary mandates to subscribe this present contract in representation of the VENDOR, as evinced in the instrument described in the before indicated numeral, and same that have not been limited, restrained, suspended or revoked a to date.


3. To be the legitimate owner of the INFORMATION.


4. To date there does not exist a contract or additional agreement that includes as its object the INFORMATION directly or indirectly and reason why the subscription of this present instrument does not imply non compliance on the part of the VENDOR to engagements previously acquired, nor the affectation



4

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


       of any rights previously granted in favor of third parties, and condition that warrants as of this moment in favor of the PURCHASER for all legal purposes that may arise, and;


5. It is its will to sell in favor of the PURCHASER the totality of the INFORMATION agreeing in all to the terms and conditions of this present contract.



II.

The PURCHASER declares through the offices of its legal representative and under oath of stating the truth, that:


1. Being an American corporation duly established and operating in agreement with the applicable legislation of its place of constitution and residence, and reason why it enjoys the necessary and sufficient personality to intervene in this present judicial act;


2. Its representative enjoys all faculties, powers and the sufficient and necessary mandates to subscribe this present contract in representation of the PURCHASER, and same that have not been limited, restrained, suspended or revoked a to date.


3. As has been established, to date he is the owner of 99.99 % (ninety nine point ninety per cent) of the social capital of AMM, and;


4. Because it so is convenient to his interest regarding the CONCESSION, it is his will to acquire from the VENDOR the totality of the INFORMATION heeding in all with the terms and conditions of this present contract.


III.

AMM declares through the offices of its legal representative and under oath of stating the truth, that:


1. Being a Mexican Mercantile Society, specifically a Stock Company with Varying Amount of Capital, duly established and operating in agreement with the applicable and current legislation of the United Mexican States, just as proven by Public Writ number 17, 227 granted on the 4th December 2006 before testimony of Eugenio Fernando García Russek, applicant to the office of Notary Public and ascribed to Public Notary number 28 of the Morelos Judicial District, State of Chihuahua and acting in the stead per license of the Offices Title Holder, Felipe Colomo Castro,



5

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


       Attorney at Law, and instrument that was duly inscribed in the Public Registry of Property and of Commerce under electronic mercantile folio number 23,327*10 as of the 22nd December 2006 and reason why it enjoys the personality and sufficient capacity to intervene in this present judicial act;


2. Its representative enjoys the faculties, powers and the sufficient and necessary mandates in order to subscribe this present contract in representation of AMM as evinced in Public Writ number 22,497 granted on the 10th June 2008 before testimony of Elsa Ordóñez Ordóñez, Attorney at Law, applicant to the office of Public Notary and ascribed to Notary Public number 28 of the Morelos Judicial District, State of Chihuahua and acting in the stead per license of Felipe Colomo Castro, Title Holder, and instrument that was duly inscribed before the Public Registry of Property and Commerce of said District under electronic mercantile folio number 23,327*10 as of the 19th January 2008, and same (powers) that have not been restrained, limited, suspended or revoked to date, and;


3. It is its will to appear for the subscription of this present contract with the specific purpose of granting in guarantee in favor of the VENDOR the rights derived from the CONCESSIONS, heeding in all with the terms and conditions included as follows.



IV.

Both PARTIES declare, as likewise AMM, through the offices of their respective legal representatives, under oath of stating the truth that they assist to the subscription of this present document in good faith, free of any guile, of whatever other vitiation in their consent with the purpose of committing themselves to the following:



CLAUSES



FIRST. OBJECT: By virtue of the subscription of this contract, the VENDOR commits itself to sell and in this same act sells in favor of the PURCHASER the whole of the INFORMATION directly related with the mining project under the name of La Palma, integrated to date by the CONCESSIONS. On its part, the PURCHASER commits itself to buy and in this same act buys from the VENDOR the object described,



6

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


committing itself to pay the certain and determined price described in the coming clause.


SECOND. PRICE: For the sale of the INFORMATION, the PURCHASER commits itself to pay in favor of the VENDOR the total amount of $920,000.00 Dollars (Nine thousand and twenty Dollars 00/100 in currency of the United States of America). (The PRICE).


THIRD: MANNER, TIME AND PAYMENT OF PRICE. PARTIES agree that the PRICE be paid on the date of signature of this present contract without injuring the reasonable time lapse that the corresponding paper work might take and issuing in favor of the VENDOR the amount of 460,000 (four hundred and sixty thousand) common shares pertaining to the PURCHASER, same that will be subjected to Rule 144 of the Securities Act of 1933, of forceful application of the stock market in which the described shares are quoted among other applicable and current legal disposition (the SHARES).


Regarding the SHARES, it is expressly convened that the corresponding title will be delivered in favor of the VENDOR as soon as possible once the corresponding issuing paper work is completed before the respective stock authority.


The VENDOR accepts that the SHARES may be exercised and, consequently sold in the corresponding stock market within a time term of 6 (six) months as of the date of issuance and delivery of the respective title in its favor.


On its part, the PURCHASER commits itself to guarantee in this act and guarantees that the SHARES stock value at the date of their exercise and sale by the VENDOR must be $2.00 Dollars (Two Dollars 00/100 in United States Currency) each.


It is expressly agreed that in the event the stock value of the SHARES at the date of their exercise and sale by the part of the VENDOR be less than $2.00 Dollars, (two Dollars 00/100 United States Currency), each, the PURCHASER will issue in favor of the VENDOR the amount of shares required that, derived from their sale, this latter may effectively collect the total amount of $920,000.00 Dollars (Nine thousand and twenty Dollars 00/100 in United States Currency), same that will be issued subject to Rule 144 of the Securities Act of 1933, of forceful application in the stock market in which the described shares are quoted, among other applicable and current legal dispositions.




7

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


On the contrary, it is likewise expressly agreed that in the event the stock value of the SHARES at the date of their exercise and sale on the part of the VENDOR be higher than $2.00 Dollars (two Dollars 00/100 in United States Currency), each, this latter must return to the PURCHASER the corresponding difference as the intention of the issuance of SHARES in its favor is to cover for, exclusively, the total amount of $920,000.00 Dollars (Nine thousand twenty Dollars 00/100 in United States Currency).


Finally, the PARTIES agree that the VENDOR will be the only responsible party of instituting the paper work for the sale of the SHARES at its opportune time, assuming the respective cost, and notifying in all opportunity the PURCHASER of the corresponding stock value in order to proceed, under the terms of the foregoing paragraphs, without injury of respecting the right of preference foreseen in the following Sixth Clause.


FOURTH. DELIVERY OF INFORMATION: The VENDOR delivers on this same date in favor of the PURCHASER the totality of the INFORMATION adequately supported and backed regarding its nature.


Consequently, the VENDOR commits itself to keep in total confidence as of this date anything regarding the INFORMATION as well as to destroy the total back up and support that he keeps in his possession regarding same.


FIFTH: GUARANTEE:  With the purpose of guaranteeing the validity and stock situation of the SHARES, by virtue of the subscription of the contract, AMM constitutes a specific guarantee in favor of the VENDOR regarding 100 % (one hundred per cent) of the rights he holds to date derived from the CONCESSIONS.


The VENDOR expressly accepts to acknowledge the reach of the described guarantee. Consequently, for as long as the SHARES remain valid and are legally recognized by the corresponding stock market, and same can be exercised and sold after the time term of the 6 (six) months previously indicated, it will be understood that the obligation of payment on the part of the PURCHASER will  have been satisfied to its fullest extent. Thus, the PURCHASER will not be held responsible due to the impossibility of the sale of the SHARES in the stock market for reasons attributable to the VENDOR or to any other person related to it, but only upon the validity, legality and stock situation of the SHARES as has been established.




8

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


SIXTH. RIGHT OF PREFERENCE: By virtue of the subscription of this contract, the VENDOR grants in favor of the PURCHASER a right of preference to acquire 100 % (one hundred per cent) of the SHARES, once these can be legally exercised and sold in the corresponding stock market.


For such a purpose, the VENDOR commits itself as of this moment to notify in writing and in all opportunity to the PURCHASER of its intention of selling part or the totality of the SHARES. The PURCHASER will benefit with a time term of 30 (thirty) natural days to exercise the described right. In the event the PURCHASER decides not to exercise his right of preference or simply does not answer in writing the VENDORS notification of this latters intention of sale within the described time term, he will be free to go ahead and sell the SHARES in the corresponding stock market, heeding to the adjustment process of amount of shares and guaranteed price per share described in the above Third Clause.


SEVENTH. CONFIDENTIALITY: PARTIES expressly commit themselves to keep in a confidential character the totality of past, present and future information related with this instrument and extending such an obligation to whomever it is disclosed to either private or corporate.


The PARTY recipient of confidential information must limit the access to it to its representatives and employees who, under a justified and reasonable cause, should request access to it. In such an event, PARTIES should extend such confidentiality obligations to whom such confidential information is disclosed to.


For purposes of this present clause, the following will not be considered confidential information: 1. Information legitimately known and obtained by the recipient PARTY previously to the subscription of this agreement; 2. Information that to date is or in the future shall be considered as of public domain if and ever such consideration does not derived from the incompliance by any of the individuals it was revealed to, or; 3. Information that must be disclosed to per law or administrative or judicial mandate issued by competent authorities including those of the stock market.


PARTIES agree that the duration of these contracted obligations by virtue of this present clause will subsist indefinitely, even after this present instrument comes to an end.




9

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


EIGHTH. NON COMPLIANCE AND ANNULMENT:  PARTIES agree that, in case any of them does not comply with any of the obligations assumed by virtue of the subscription of this present instrument, these latter will enjoy the right to enforce compliance to the obligations not complied with, on one hand or the annulment of this present contract on the other as well as to request an indemnity payment for harms and damages, in both cases.


The above without impairing the specific possible guarantee granted in favor of the VENDOR under the terms of the above written Fifth Clause.


NINTH. ADDRESSES AND CONTACT TELEPHONES: PARTIES convene in stating as their addresses and contact telephones for anything related to the execution and compliance to the terms and conditions of this present instrument, as well as to render notifications, announcements and other communications related to same, the following:


VENDOR:


PURCHASER:

Av. Independencia 2812

Col. Santa Rosa, C. P. 31050

Ciudad de Chihuahua, Chihuahua.


Phone : 52-614-415-1971

2162 Acorn Court

Wheaton, C. P. 60187

Illinois, E. U. A.


Phone: 01-630-462-0493



AMM:


Calle California 5101, Local 206

Edificio Ejecutivo Vértice

Col. Hacienda de Santa Fe, C. P. 31214

Ciudad de Chihuahua, Chihuahua.


Phone: 52-614-200-8483


In the case of a change of address or contact telephone, the PARTIES agree in letting their counterpart know of such a circumstance at least 5 (five) natural days prior of the date in which the change will effectively take place.


TENTH. ANNOUNCEMENTS, NOTIFICATIONS AND COMMUNICATIONS: PARTIES agree that any announcement,



10

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


notification or communication necessary to be made known to its counterpart must be done so in writing.


Sending of such documents can be carried out by two means: 1. Per ordinary courier delivered on hand or by certificate mail, both with acknowledgement of receipt, or; 2. By Electronic mail. In this latter case, sending will only be considered valid and legally carried out when reception of the respective electronic mail is electronically confirmed within the following 3 (three) natural days of its being sent through an answering message and confirmation sent by the addressee.


ELEVENTH: CONTACT PERSONNNEL: PARTIES agree in that the totality of announcements, notifications and communications necessary to be issued derived from the terms and conditions of this present instrument must be addressed indistinctly to the following persons:


VENDOR:


PURCHASER:

HÉCTOR MANUEL CERVANTES SOTO

AGUSTÍN CERÓN GUEDEA


RICHARD BISCAN JR.


AMM:


RAMIRO TREVIZO LEDEZMA

RAMIRO TREVIZO GONZÁLEZ


In case it is their will to change contact persons, PARTIES agree in letting their counterpart know of such a circumstance at least 5 (five) natural days previously of the date in which the change will effectively take place. Not complying to this described obligation will imply that the announcements, notifications and communications sent and delivered to the name of the original addressees of the PARTY carrying out the change, will bear all legal effects in favor of the PARTY that was not notified in all opportunity as of the date of delivery and for as long as the non compliance lasts.


TWELFTH. TOTALITY OF THE CONTRACT: PARTIES accept that this agreement contains the totality of the agreements between them regarding its object and leaving without any effect as well as canceling the whole of agreements, information, negotiations, correspondence, commitments and communications carried out before between them either in writing or verbally related.




11

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.


THIRTEENTH. SEPARATE IDENTITIES: PARTIES and AMM expressly agree that this present contract will be considered as subscribed and valid for all legal purposes that may arise even same be signed in separate by each, and the consent and the corresponding granting will simply be acknowledged per means of the reception of any electronic means of an ordinary copy of the instrument duly signed without impairment that afterwards it be integrated as one single copy with the autograph signature of the PARTIES and AMM for formality purposes.


FOURTEENTH. APPLICABLE LAW: This present instrument will abide and will be interpreted in agreement with the applicable and current legal dispositions in the United States of Mexico.


FIFTEENTH. JURISDICTION: In case any controversy may arise related with the validity, intention, interpretation, execution or compliance of this contract, PARTIES expressly agree go submit same before the competent courts of law of the Morelos Judicial District at the city of Chihuahua, State of Chihuahua, and surrendering as of this moment any other jurisdiction or privilege that might correspond to them by reason of their present or future addresses or by any other circumstance.


THE PARTIES IN THE KNOWLEDGE OF THE WORTH AND LEGAL REACH OF THIS PRESENT CONTRACT, SUBSCRIBE IT AT THE PLACES AND DATES INDICATED FOR SUCH A PURPOSE.



VENDOR:

PURCHASER:

CORPORACIÓN KEDAH,

S.A. DE C. V.,

Represented in this act by:

HÉCTOR MANUEL CERVANTES SOTO

Locality: Chih., Chih.

Date: 14th March 2011

TARA MINERALS CORP.,

Represented in this act by:

RICHARD BISCAN JR.



Locality:

Date:


AMM:

(AMERICAN METAL MINING, S.A. DE C. V.)

Represented in this act by:

RAMIRO TREVIZO GONZÁLEZ

Locality: Chih., Chih.

Date: 14th March 2011




12

Sales-Purchase Contract of technical information on mining prospecting subscribed between Corporación Kedah, S. A. de C. V., and Tara Minerals Corp.

EX-10.5 6 f105acquisitionagreementlave.htm ACQUISITION AGREEMENT ??? LA VERDE Exhibit 10.5


ONEROUS TRANSFER OF MINING RIGHTS PROMISE CONTRACT SUBSCRIBED ON ONE HAND BY A) CORPORACIÒN KEDAH, S. A. DE C. V., REPRESENTED IN THIS ACT BY HÈCTOR MANUEL CERVANTES SOTO, IN HIS PERSONALITY AS SOLE ADMINISTRATOR AND LEGAL REPRESENTATIVE (THE PRINCIPAL), AND ON THE OTHER, BY B) AMERICAN METAL MINING, S. A. DE C. V., REPRESENTED IN THIS ACT RAMIRO TREVIZO GONZÀLEZ, IN HIS PERSONALITY AS GENERAL PROXY (THE ASSIGNEE), JOINTLY NAMED AS THE PARTIES ACCORDINGLY WITH THE FOLLOWING STATED PREVIOUS RECORDS, DECLARATIONS AND CLAUSES.


PREVIOUS RECORDS

I.

Prior to the date of the subscription on this present contract the PRINCIPAL acquired the rights derived from the registry request of the 2 (two) mining concessions described ahead (the FUTURE CONCESSIONS), and same that will be integrated in the project known as La Verde.


Lot:

MINA EL ROSARIO

File:

095/13646

Surface:

54.2402 Hectares.

Location:

Municipality of  Choix,

State of Sinaloa.


Lot:

LA VERDE 5

File:

95/13521

Surface:

72.7999 Hectares.

Location:

Muncipality of Choix,

State of Sinaloa.



.



1

TRANSFER OF MINING RUGHTS CONTRACT PROMISE SUBSCRIBED ON THE 26TH APRIL 2011 BETWEEN CORPORACIÒN KEDAH, S. A. DE C. V., AND AMERICAN METAL MINING, S. A. DE C. V.



II.         In recently past days, the PRINCIPAL explained to the ASSIGNEE the possibility of transferring in his favor the mining rights derived from the FUTURE CONCESSIONS once these were definitely granted in his favor;


III.

The ASSIGNEE considered the PRINCIPALS proposal as feasible because it benefited his interests, and;


IV.

Derivative from the foregoing, PARTIES decided to subscribe this present contract with the purpose of convening to the terms and conditions that would regulate the mercantile relationship regarding the FUTURE CONCESSIONS for all legal purposes that might arise.



DECLARATIONS


I.

The PRINCIPAL declares through the offices of its legal representative and under oath of stating the truth, that:


1.

It is a Mexican mercantile society, specifically a Stock Company with Varying Amount of Capital, duly established and operating in agreement with the applicable and current legislation of the United States of Mexico as witnessed in Public Writ number 11,750 granted on the 23rd  July 2009 before testimony of Jorge Mazpùlez Pèrez, Attorney at Law and Public Notary number 14 for the Morelos Judicial District, State of Chihuahua, and instrument that was correctly inscribed in the Public Registry of Property and Commerce of said district under electronic mercantile folio number 25,362*10 as of the 18th August 2009 and reason why it enjoys the personality and necessary as well as sufficient capacity to intervene in this present judicial act;


2.

Its representative enjoys the faculties, the sufficient and necessary powers and mandates to subscribe this present contract in the ASSIGNEES representation as already proven



2




in the before indicated numeral, and same that have not been limited, restrained, suspended or revoked to date.

3.

It is duly inscribed in the Federal Taxpayers Registry with identification number CKE-090723-435 and is to date current in his tax payments and other contributions that might have corresponded to him in agreement with the applicable and current fiscal legislation;


4.

Within its social object there is contemplated the possibility of becoming title holder of all kinds of mining rights, as well as to promise to transfer them onerously, as is the case of the operation documented by virtue of this present instrument;



5.

It is the legitimate title holder of the rights related with the registry request of the FUTURE CONCESSIONS, just as has been written in the previous records of this instrument;



6.

On the 6th April 2011, he subscribed with Messrs Manuel Coronel Beltràn and Fernando Alonso Huerta Elenes a sales-purchase contract and/or transfer of rights of the titles of the Mining Concession and Claim of Mining Rights regarding the acquisition of the FUTURE CONCESSIONS, and on account of which said contract is the only one of its kind that he ahs celebrated, and the subscription of this present instrument does not imply any non compliance on his part whatsoever (of the PRINCIPAL) to commitments already engaged in in favor of third parties, situation that guarantees as of this moment in favor of the ASSIGNEE for all legal effects that may take place;



7.

Prior to the date of this present contract he received from the ASSIGNEE a cash amount consisting of ·30,000.00 Dollars (Thirty thousand Dollars 00/100 in United State of America Currency) as advance of the price to be paid for due to the definite transfer of 100 % (one hundred per cent) of the mining rights derived from the concessions granted once the FUTURE CONCESSIONS are correctly transferred by the competent authorities (the ADVANCE), and;




3

TRANSFER OF MINING RUGHTS CONTRACT PROMISE SUBSCRIBED ON THE 26TH APRIL 2011 BETWEEN CORPORACIÒN KEDAH, S. A. DE C. V., AND AMERICAN METAL MINING, S. A. DE C. V.



8

It is his free will to subscribe this present agreement with the purpose of agreeing on the terms and conditions that will regulate their mercantile relationship with the PRINCIPAL regarding the FUTURE CONCESSION as indicated in the forthcoming clauses:

II.

The PRINCIPAL declares through the offices of its legal representative and under oath of stating the truth, that:


1.

It is a Mexican mercantile society, specifically a Stock Company with Varying Amount of Capital, duly established and operating in agreement with the applicable and current legislation of the United States of Mexico as witnessed in Public Writ number 17,227 granted on the 4th  December 2006 before testimony of Eugenio Fernando Garcìa Russek, Attorney at Law and applicant to the position of Public Notary and ascribed to Public Notary number 28 for the Morelos Judicial District, State of Chihuahua, per license of the offices Title Holder Felipe Colomo Castro, and instrument that was correctly inscribed in the Public Registry of Property and Commerce of said district under electronic mercantile folio number 23,327*10 as of the 22nd  December 2006 and reason why it enjoys the personality and necessary as well as sufficient capacity to intervene in this present judicial act;


2.

Its representative enjoys the faculties, the sufficient and necessary powers and mandates to subscribe this present contract in AMMS representation as already proven in Public Writ number 22,497, granted on the 10th June 2008 before testimony of Mrs. Elsa Ordòñez Ordòñez, applicant to the office of Notary Public and ascribed to Public Notary number 28 of the Morelos Judicial District and acting per license of the offices Title Holder Felipe Colomo Castro, and instrument that was correctly inscribed in the Public Registry of Property and Commerce of said district under mercantile electronic folio number 23,327*10 as of the 19th June 2008 and same that have not been limited, restrained, suspended or revoked to date, and;


3.

The subscription of this present instrument does not imply any transgression of powers, mandates or faculties, as it has had the opportunity of being placed before the consideration of the shareholders of the ASSIGNEE both in terms and conditions related with the present business, and its formalization having been duly approved under the terms of its own statutory regime.


 



4




4.   It is duly inscribed in the Federal Taxpayers Registry with identification number AMM-061204-4R7, and is to date current in its tax payments and other contributions that might have corresponded according to the applicable and current legislation covering the matter;


5.

Within its social object there is contemplated the possibility of becoming title holder of all kinds of mining rights, as well as to promise to transfer them onerously, as is the case of the operation documented by virtue of this present instrument;


6.

It is adequately inscribed in the Public Registry of Mines, specifically in the Book of Mining Societies, and;



7.

It is his free will to subscribe this present agreement with the purpose of agreeing on the terms and conditions that will regulate their mercantile relationship with the ASSIGNEE regarding the FUTURE CONCESSION as indicated in the forthcoming clauses:



III.

PARTIES declare through the offices of their respective legal representatives and under oath of stating the truth, that they assist to the subscription of this present document in good faith, free of deceit, error, violence or any other vitiation in their consent with the purpose of committing themselves to the following:


CLAUSES


FIRST. PROMISE: Under the terms of article 2,243 of the Federal Civil Code, by virtue of the subscription of this present contract, the PRINCIPAL promises and expressly commits himself to cede in the future in favor of the ASSIGNEE 100 % (one hundred per cent) of the mining rights that might derive from the conclusion of the registry procedures of the FUTURE CONCESSION, free of liens, burden, attachments or limitation in domain of any



5

TRANSFER OF MINING RUGHTS CONTRACT PROMISE SUBSCRIBED ON THE 26TH APRIL 2011 BETWEEN CORPORACIÒN KEDAH, S. A. DE C. V., AND AMERICAN METAL MINING, S. A. DE C. V.



kind. On its part, and as a counterclaim concept for the eventual transfer already described, the ASSIGNEE promises and expressly obliges himself to pay in favor of the PRINCIPAL the amount described in the forthcoming clauses.


SECOND. TERMS AND CONDITIONS OF THE PROMISE: PARTIES agree in subjecting the promise decided upon in the previous clause to the following terms and conditions:


1.

The PRINCIPAL formally commits himself to continue with the totality of the procedures required until the obtainment of the definite registry that will cover the FUTURE CONCESSIONS in his favor;


2.

Once the described procedures are fully completed, the PRINCIPAL will notify the ASSIGNEE of such a circumstance  within the following 5 (five) able days of being notified of the grant of the FUTURE CONCESSIONS.



3.

Within 60 (sixty) days following the date of the described notification, PARTIES must subscribe the contract of the onerous transfer of the corresponding mining rights (the CONTRACT), as well as to proceed to its ratification before Public Notary and its inscription before competent authorities.


4.

For the transfer of rights derived from the FUTURE CONCESSIONS, the ASSIGNNEE obliges himself as of this moment to pay in favor of the PRINCIPAL the amount of $60,000.00 Dollars (Sixty thousand Dollars 00/100 in United States of America Currency), plus the corresponding Added Value Tax, that is, a sum total of $69,600.00 Dollars (Sixty nine and six hundred thousand Dollars 00/100 in United States Currency). (the PRICE).



5.

The PRICE for the transfer of the right derived from the FUTURE CONCESSIONS must be paid accordingly to the following schedule of payments: 1. Prior to the date of



6




     subscription of this present contract, the amount of the ADVANCE, that is, the amount of $30,000.00 Dollars (thirty thousand Dollars 00/100 in United States Currency), amount the PRINCIPAL accepts having already received from the ASSIGNEE under the terms of this instrument; 2. On the date of ratification of this present contract, the amount of $15,000.00 Dollars (fifteen thousand Dollar 00/100 in United States Currency), and 3. Within the following 4 (four) natural nays from the date of subscription of this present contract, the amount of $24,600.00 Dollars (Twenty four and six hundred thousand Dollars 00/100 in United States Currency), concluding thus with the totality of the PRICE.


6.

The PRICE must be honored through a nominal check for deposit into the beneficiarys account or through an electronic transfer of funds, precisely on the date of the subscription of the CONTRACT.



7.

Against the payment of the PRICE, the PRINCIPAL will issue in favor of the ASSIGNEE a voucher that includes all tax requirements due to the applicable and current fiscal legislation;


8.

The registry procedure before competent authorities regarding the CONTRACT must be carried out by the ASSIGNEE.



9.

The totality of expenses incurred in on account of the preparation, signature, ratification and inscription of the CONTRACT must be paid by the ASSIGNEE.


10.

According to the disposition of article 2,245 of the Federal Civil Code, PARTIES agree that this present contract only commits them to carry out future judicial acts, only in so far and the onerous transfer of the rights derived from the FUTURE CONCESSIONS become formalized by virtue of the CONTRACT.




7

TRANSFER OF MINING RUGHTS CONTRACT PROMISE SUBSCRIBED ON THE 26TH APRIL 2011 BETWEEN CORPORACIÒN KEDAH, S. A. DE C. V., AND AMERICAN METAL MINING, S. A. DE C. V.



THIRD. DURATION: PARTIES agree that this present contract will have a duration between the dates of its subscription and the 31st December 2011, dateline for the subscription and ratification of the CONTRACT.


In case the contract cannot be subscribed and ratified prior to the duration of same by any reason or cause, the contract will lose all effect without harm to the parties who may agree upon an extension.


It is expressly convened that in case the FUTURE CONCESSIONS are not adequately registered before the competent authority as of the end of this present contract by any reason or cause, the PRINCIPAL must immediately return the advances that the ASSIGNEE has delivered regarding the price agreed upon for the transfer under the terms of the foregoing clause.


FOURTH. ADDRESSES AND CONTACT TELEPHONES: PARTIES agree in indicating as their addresses and contact telephones for any and all purposes regarding the execution and compliance of the terms and conditions of this present instrument, and well as to deliver announcements, notifications and other communications related with same, the following:


PRINCIPAL


Av. Independencia 2812


Col. Santa Rosa, C. P. 31050


Ciudad de Chihuahua, Chihuahua


Phone: 01-614-415-1971

ASSIGNEE


Calle California 5101, local 206


Edificio Ejecutivo Vèrtice


Col. Hacienda de Sta. Fe C.P. 31214


Phone: 01-614-200-8483




In case of a change in address or in telephone number, PARTIES agree in notifying their counterpart of such a circumstance at least five (5) natural prior to the date in which the change will factually take place.




8




FIFTH. ANNOUNCEMENTS, NOTIFICATION AND COMMUNICATIONS: PARTIES convene that any announcement, notification or communication necessary to surrender to their counterparts, must be done in writing.


Sending of such documents can be carried out via two means: 1. Per ordinary couriers service delivered on hand or by certificate mail with acknowledgement of receipt, or; 2. By electronic mail. In this letter case, forwarding will only be considered valid and legally accomplished when reception of the respective electronic mail is confirmed likewise, electronically, within the following three (3) natural days in an expressed manner through an answering and confirmation service sent back by the addressee.


SIXTH. PARTIES agree that the totality of announcements, notification or communications necessary to be issued as derived from the terms and conditions of this present instrument must be forwarded indistinctly to the following persons:


PRINCIPAL


HECTOR MANUEL

CERVANTES SOTO


AGUSTÌN CERÒN GUEDEA

ASSIGNEE


RAMIRO TREVIZO LEDEZMA



RAMIRO TREVIZO GONZÀLEZ




In case it is their will to change the personnel contacts, PARTIES agree in notifying their counterparts of such a fact at least 5 (five) natural days in advance before the factual date of change of contact personnel. Not complying to the obligation described herein will imply that announcements, notification or communications sent and delivered in the name of the original addressees of the PARTY carrying out the change, will hold all legal effects in favor of the PARTY not having been advised in all opportunity as of the date of delivery and for as long as the non compliance subsists


SEVENTH. TOTALITY OF THE CONTRACT: PARTIES  accept that this present agreement contains the totality of the agreements between them regarding the object and leaving without effect as well as cancelling the whole of agreements, reports, negotiations, correspondence, commitments and communications carried out previously between them either in writing o verbally.




9

TRANSFER OF MINING RUGHTS CONTRACT PROMISE SUBSCRIBED ON THE 26TH APRIL 2011 BETWEEN CORPORACIÒN KEDAH, S. A. DE C. V., AND AMERICAN METAL MINING, S. A. DE C. V.



EIGHTH. APPLICABLE LAW: This present instrument will abide and will be interpreted in agreement with the Mining Law, its Rulings and the Federal Civil Code among other applicable and legal dispositions in the United States of Mexico.


NINTH. JURISDICTION: In case controversies may arise in relation with the validity, intention, interpretation, execution or compliance of this contract, PARTIES expressly agree to submit same before the competent courts of law of the Morelos Judicial District in the City of Chihuahua, State of Chihuahua, surrendering as of this moment any other jurisdiction or privilege that might correspond to them by reason of their present or future domiciles, or by any other circumstance.


BOTH PARTIES IN THE KNOWLEDGE OF THE FORCE AND LEGAL REACH OF THIS PRESENT CONTRACT, SUBSCRIBE IT BEING TOGETHER IN THE CITY OF CHIHUAHUA, STATE OF CHIHUAHUA, ON THE TWENTY SIXTH APRIL OF THE YEAR TWO THOUSAND AND ELEVEN.


PRINCIPAL



CORPORACION KEDAH,

S.A. DE C.V.


Represented in this act by:


HÈCTOR MANUEL

CERVANTES SOTO

ASSIGNEE



AMERICAN METAL MINING

S. A. DE C. V.


Represented in this act by:


RAMIRO TREVIZO GONZÀLEZ







10


EX-10.6 7 f106letterofintentdonromangr.htm LETTER OF INTENT ??? DON ROMAN GROUPING Converted by EDGARwiz

Springbok Development-Claridge-Hanlon Resource Engineering/and or Nominee







April 30, 2011



Confidential


Mr. Francis R. Biscan Jr.

Tara Minerals Corp.

2162 Acorn Court

Wheaton, IL  60187, US


Dear Mr. Biscan,


Re: Option to Acquire up to a 49% Interest in the Don Roman Project, Mexico


Further to our recent discussions, this letter of intent (the “LOI”) sets out the principal terms and conditions of a potential agreement pursuant to which Tara Minerals Corp. (“Tara Minerals”), through its wholly owned Mexican subsidiary American Metal Mining, S.A. de C.V. (“Tara Mexico”, and together with Tara Minerals, “Tara”) will grant to Springbok Development-Claridge-Hanlon Resource Engineering/and or Nominee or any of its subsidiaries (“SD-CHRE”) the sole and exclusive right and option to acquire up to an undivided forty-nine percent (49%) interest in and to all of the mining concessions known as the Don Roman Project located in the State of Sinaloa, Mexico as further described in Exhibit “A” to this LOI (the “Concessions”), and all fixtures, tools, vehicles, machinery, equipment and supplies and all other property or rights of any, whether real or personal, of Tara used directly in respect of the exploration, development and mining of the Don Roman Project (the “Project”). Claridge-Hanlon Resources Engineering is a division of Hanlon Engineering & Architecture, Inc., an Arizona Corporation.

For the purposes of this LOI, Tara and SD-CHRE are each a “party” and collectively, the “parties”.  The date of acceptance of this LOI is the “Effective Date”.


This LOI is non-binding except as is otherwise provided herein.  In addition, the proposal is not exhaustive of all the matters which Tara and SD-CHRE may wish to cover in any subsequent agreement they may enter into. The proposal nevertheless represents the commercial basis on which Tara and SD-CHRE are prepared to proceed with a view to negotiating definitive legal documentation (such legal documentation individually and collectively, the “Definitive Agreement”) in accordance with Section 4.

1.

Conditions Precedent



1




The obligations of the parties under the Definitive Agreement will be subject to each of the following conditions being satisfied on or before that date on which the Definitive Agreement is executed (“Closing Date”), or such other date as hereinafter provided, unless waived by both parties:


(a)

The parties obtaining any required approval, consent or acceptance from any regulatory body having jurisdiction in connection with the Definitive Agreement or its subject matter;

(b)

The parties obtaining any required approval, consent or acceptance from their respective boards of directors in connection with the Definitive Agreement or its subject matter;

(c)

SD-CHRE delivering, within 45-60 days of the Effective Date, a written preliminary assessment based on the data and information provided solely provided by TARA. The preliminary assessment will include:

(i)

Determination if data provided is sufficient to complete preliminary assessment;

(ii)

Review and assessment ore body and mineralization based on data provided;

(iii)

Review and assessment the existing Process Plant capabilities and;

(iv)

Order of magnitude operating budget for mine, process plant and infrastructure based on information available;

(v)

Suggested order of magnitude development budget;

(vi)

Preliminary assessment for ores or concentrates of commercial economic value extracted or derived from the Concessions for sale (the “Project Material”) with a minimum Phase 1 production rate of 120 tonnes per day (“Phase 1 Production Rate”);

(vii)

Outline steps and schedule to be developed in Phase 2, which include a detailed operate plan towards the re-start of mining and milling operations resulting in materials containing a mineral or minerals, ores or concentrates of commercial economic value extracted or derived from the Concessions for sale (the “Project Material”) with a minimum Phase 2 production rate of 360 tonnes per day (“Phase 2 Production Rate”);

(viii)

Enviromental and Operation Permits, laws, regulations are the sole responsibility of TARA; these will be provided by TARA and verified in Phase II.

(d)

Tara approving the phase I preliminary assessment and path forward as submitted, or with such modifications as the parties may agree to.

2.

Option to acquire 49% interest in the Project



2




 The Definitive Agreement will provide that:

(a)

SD-CHRE shall have the sole and exclusive option, exercisable in its sole discretion, to earn an undivided forty-nine percent (49%) interest in and to the Project (the “Option”) by:

(i)

Making a $250,000 cash payment to Tara Minerals within 45 days of the signing of this LOI (to be escrowed into a neutral account until execution of the definitive agreement). SD-CHRE will be reimbursed from this amount directly for the work performed to date, not to exceed $100,000. The payment will be made within 5-days of the deposit into the escrow account directly to CHRE.

(ii)

incurring a minimum of US$2,000,000 in start-up expenditures on the Project (the “Start-Up Expenditures”);

(iii)

re-starting mining and milling operations based on the Start-Up Program and Budget and achieving the Phase 1 Production Rate within 120 days from the Effective Date (“Start-Up Period”); and

(iv)

incurring a minimum of US$2,000,000 in additional capital expenditures on the Project (the “Capital Expenditures 1”) to achieve the Phase 2 Production Rate of 360 tonnes per day on or prior to the date that is six (6) months from the Effective Date;

(v)

incurring a minimum of US$4,000,000 in additional capital expenditures on the Project (the “Capital Expenditures 2”) to achieve and maintain a minimum Production Rate, as the parties may agree upon within the Definitive Agreement, not to be less than 480 tonnes per day, on or prior to the date that is twelve (12) months from the Effective Date;

(b)

the Expenditures shall not be committed. SD-CHRE shall be entitled to terminate the Option and Definitive Agreement at any time prior to funding and incurring the Expenditures with thirty (30) days written notice to Tara. Expenditures may be made within a shorter time frame at the sole option of SD-CHRE

(c)

any Start-Up Expenditures in excess of US$2,000,000 shall be credited and set-off against future Capital Expenditures.

(d)

upon satisfaction of the Start-Up Expenditures, SD-CHRE shall have the right to 50% of the net revenue (the “SD-CHRE Revenue”) derived from the Project. Tara shall have the right to the remaining 50% of the net revenue (the “Tara Revenue”) derived from the Project. Net Revenue is defined as Project Material revenue minus expenses related to feeding and operating the mill.  For further clarity, the expenses above, for the purpose of the calculation of the net revenue, will not include the SD-CHRE expenditures outlined in Section 2(a). If the Option is terminated, expires or the requirements are otherwise not met by the relevant times, SD-CHRE will no longer be entitled to the SD-CHRE Revenue and will forfeit all rights in respect of the SD-CHRE Revenue.



3




(e)

Upon satisfaction of all of the obligations set forth in Section 2(a), SD-CHRE will be deemed to have exercised the Option and acquired an undivided forty-nine percent (49%) interest in the Project and SD-CHRE shall continue to have the right to 50% of the net revenue derived from the Project. Tara then shall have the right to the remaining 50% of the net revenue derived from the Project and retain an undivided fifty percent (51%) interest in the Project

3.

Documents and Reports

Promptly following the execution of this LOI, Tara will make available to SD-CHRE for review all records and data in its possession or control respecting the Project and including, without limitation, all technical and environmental reports prepared by or for Tara in respect of the Project, any opinions and other documentation regarding title to the Concessions, any present or historical interests of third parties in the Concessions and any and all information requested by SD-CHRE or its counsel in connection with the Project, and SD-CHRE shall be entitled to make copies of all such records, data and reports, provided that it shall keep all such information confidential. Tara will co-operate fully in making its personnel available to SD-CHRE at reasonable times for the purposes of gathering and assessing all such documents and reports.  If this LOI is terminated in accordance with Section 16 prior to the execution of the Definitive Agreement, all information provided to SD-CHRE, or generated by SD-CHRE towards the progress of the LOI, will be returned/forwarded to Tara and all copies of all such records, data and reports made by SD-CHRE must be destroyed.

4.

Definitive Agreement

(a)

Tara and SD-CHRE shall, using reasonable commercial efforts, negotiate in good faith, settle and execute the Definitive Agreement.  The parties will endeavor to execute and deliver the Definitive Agreement within ninety (90) days from the Effective Date. The Definitive Agreement shall include the terms set out in this LOI and such other mutually acceptable terms and conditions as the parties may agree, including such terms, conditions, representations, warranties and covenants as are customary in transactions involving the grant of an option to acquire an interest in mining properties in Mexico, and including the representations and warranties of Tara set out in Section 11 of this LOI.

(b)

SD-CHRE and Tara hereby acknowledge and agree that their intent is that all transactions contemplated by this LOI be structured, undertaken and completed in a tax efficient manner for all parties.  As such, the Definitive Agreement will be prepared accordingly.

(c)

The Definitive Agreement will include provisions that upon the occurrence of an event of force majeure, the Start-Up Period and the Capital Expenditure Period will be extended by the duration of the event of force majeure, such events to include the inability of either Tara or SD-CHRE to gain access to all or any part of the mining lots that comprise the Concessions, due to interference from local landholders or community groups or other circumstances beyond SD-CHRE’s or Tara’s reasonable control.



4




(d)

Upon SD-CHRE exercising the Option, the Definitive Agreement will provide that the parties will be deemed to have entered into a joint venture (which may be either an unincorporated contractual joint venture, or an incorporated joint venture, as the parties may in due course agree is most effective from a legal, financial, tax and operational perspectives) constituted on the basis of a term sheet that will be scheduled to the Definitive Agreement.  The joint venture term sheet will, amongst other things, (i) outline a framework by which either party can acquire the entire interest held by the other party, and (ii) include the matters that will require a supermajority or unanimous decision by the parties, including amongst other things, any decision to suspend or cease the mining operations or place any mining operation on care and maintenance.

(e)

The Definitive Agreement will include dispute resolution procedures.

5.

Funding of Project Expenditures

The parties hereby agree that funding of Project Expenditures, after the satisfaction of the Start-Up Expenditures by SD-CHRE, and upon approval of a program and budget for operations on the Project by the Management Committee as provided in Section 7 of this LOI, shall be made as follows:

(a)

First by SD-CHRE, as Capital Expenditures 1 and Capital Expenditures 2, until satisfied;

(b)

Second by the parties at the interest earned; and

(c)

If a party elects not to contribute to an approved program and budget, such non-contributing party’s interest in the Project shall be diluted appropriately.

6.

Operations

(a)

The Definitive Agreement will provide that SD-CHRE shall be the Operator of the Project and the Operator

(i)

will have the right, at its sole risk and expense, for its employees, agents and independent contractors to enter in, on or under the mining lots that comprise the Concessions, and may conduct any work program activities or other work on the mining lots that comprise the Concessions;

(ii)

must conduct all activities in compliance with the applicable laws and regulations governing the Project and must do all things necessary to maintain the Concessions in good standing during such period;

(iii)

must maintain the Project and all permits, licenses and other approvals pertaining to the Project in good standing and free of all liens;

(iv)

will incur Expenditures in accordance with programs and budgets approved by the Management Committee;



5




(v)

must do such acts, and pay as Expenditures such fees and rents as may be required to keep the Project in good standing; all work conducted, carried out or performed by or on behalf of the Operator on the Project during must be done in a good and workmanlike manner to the best of its ability in accordance with best international mining practices and in compliance with all applicable laws of all governmental authorities, including without limitation, all environmental laws;

(vi)

must keep full and complete records of all Project exploration and development work, funding, Expenditures, expenses, revenues, mining and milling data, and other metrics together with the results of surveys, drilling, assays made, shipments and all such records and results shall be available for inspection by Tara;

(vii)

must provide written updates of the exploration activity and relevant exploration results on the Project, including detailed drill results and assays, on a quarterly basis; the Operator must also promptly notify Tara of any and all material results from the Project;

(viii)

must provide written updates of the mining activity and relevant metrics on a quarterly basis; the Operator must  also promptly notify Tara of any and all material mining issues that may significantly vary expected results;

(ix)

must provide written updates of the milling/processing activity, the derived revenue, and relevant metrics on a quarterly basis; the Operator must also promptly notify Tara of any and all material milling/processing issues that may significantly vary expected results;

(x)

must maintain adequate insurance coverage in accordance with normal industry standards and practice, naming the parties as insured and protecting the parties from third party claims, and shall provide satisfactory evidence of such insurance at the request of Tara;

(xi)

must pay or cause to be paid all invoices for all materials and services purchased by the Operator in connection with work on the Project and maintain the Project free of all encumbrances;

(xii)

must produce accurate, comprehensive and complete monthly financial and accounting reports, to be delivered to Tara no later than the 10th business day following the end of each month;

(xiii)

must provide Tara with; (i) quarterly reports indicating the status of all work on the Project and a summary of all results obtained or received in connection therewith, and the compilation and interpretation thereof as well as a breakdown of the Expenditures incurred in carrying out such work reconciled with budgetary progress for such time period and conclusions of drilling results; and (ii) timely reports and information and forthwith upon the occurrence of any material results or other events,



6




notice in reasonable detail, and will provide copies of relevant data of such material results or events;  and

(xiv)

must use qualified and licensed employees, agents and independent contractors under the management and direction of the operator of the Project and any payment for wages, benefits, any statutory withholdings or remittances, employment related matters or applicable contractual fees required to be paid to the workforce will be made by the Operator.

(b)

The Definitive Agreement will provide that Tara shall have the right to review and, if required, dispute the contents of any reports as to Expenditures incurred or compliance with the terms of the approved budget by the independent accountants of Tara.  The Operator shall provide access, upon every reasonable request, to Tara to all work papers of the Operator, accounting books and records and the appropriate personnel to verify the accuracy, presentation and other matters relating to the preparation of such reports.

7.

Management Committee

The Definitive Agreement will provide that a formal management committee (the “Management Committee”) will be established.  The members of the Management Committee will consist of two representatives appointed by Tara and two representative appointed by SD-CHRE.  The Management Committee will discuss, at least once every two weeks, during the Start-Up Period and, in any event, within 10 days of being requested to do so by a representative of either party to address matters relating to the work and payments being conducted by or on behalf of the Operator on or in connection with the Project.  A majority vote is needed for approval of matters with three members needed for quorum. At each meeting, the Operator will provide information concerning the amounts being expended as Expenditures at such time and the purposes of such expenditures.  For certainty, the Management Committee shall, among other things: (a) approve programs and budgets proposed by the Operator; (b) monitor and make on-going recommendations regarding Expenditures; (c) monitor and make on-going recommendations regarding work on the Project and locations and determination for the conduct of such exploration, development and expansion work; (d) approve any Expenditures not included in the budget and exceeding US$50,000; and (e) provide such other advice and direction as it sees fit.

8.

Termination of the Option

The Definitive Agreement will provide that, if SD-CHRE terminates the Option, SD-CHRE will have 60 days to:

(a)

CHRE will deliver to TARA all data, reports and technical information prepared by or for it related to the Project upon receipt payment for work completed to date; and

(b)

to vacate the Project concessions without any right to remove any vehicles, equipment, portable structures and other apparatus belonging to the Project and/or acquired towards the satisfaction of the Option.



7




9.

Business operations

The Definitive Agreement will provide that, other than as set out in Section 10, each party shall be free to conduct its business operations independently any without any communication, notice or reference to the other party and neither party will have the obligation to invite the other party to participate in any negotiations, dealing or agreements with any third parties whether in Mexico or in any other jurisdiction.  For further clarity, Tara shall have all right of passage necessary to work on the concessions that it continues to control 100%.

10.

Area of Interest

(a)

The Definitive Agreement will provide that, if at any time after the execution of the Definitive Agreement, either SD-CHRE or Tara desires to acquire, or causes any other party to acquire, a mining concession or property (or any direct or indirect right, title or interest therein) (a “Mineral Interest”), which is located or lies wholly or partly within five (5) kilometers of the circumambient boundaries of any part of the Concessions as they exist on the date of the Definitive Agreement (the “Area of Interest”) then, such party shall notify the Management Committee of its intention to acquire such Mineral Interest and the Management Committee shall either unanimously approve or reject such transaction. The parties hereby acknowledge and agree that they will only acquire Mining Interests that have been approved by the Management Committee as herein provided. The approval of the Management Committee shall include an approval of the purchase price, form of payment and other details of the acquisition transaction. Any Mineral Interest so acquired will be transferred to the Project upon exercise of the Option and shall form part of the Concessions and the Project and become subject to the Definitive Agreement.

(b)

With the exception of termination pursuant to Section 16(c), if this LOI is otherwise terminated, then, for a period of one year after the termination of this LOI, then SD-CHRE and each of its Affiliates will not acquire any Mineral Interests located wholly or in part within the Area of Interest.

11.

Representations and Warranties of Tara

The Definitive Agreement will provide for the following representations and warranties to be given from Tara Minerals to SD-CHRE:

(a)

Tara Mexico is the sole and exclusive legal and beneficial owner of a 100% interest in and to the Concessions; the Concessions are free and clear of any and all encumbrances, security interests, charges, actions or claims other than those stated in Exhibit “A”;

(b)

there are no actions, suits or proceedings, pending or, to the knowledge of Tara, threatened against Tara or Tara Mexico, at law or in equity, or by any federal, provincial, state, municipal or other governmental department, commission, board, bureau or agency, domestic or foreign in respect of the Concessions, Tara is not aware of any existing grounds on which any such action, suit or proceeding



8




might be commenced with any reasonable likelihood of success other than those stated in Exhibit “A”;

(c)

there are no outstanding rights, agreements or obligations, or understandings capable of becoming rights, agreements or obligations, to acquire any right, title or interest in or to the Concessions or to grant any interest in or encumbrance on the Concessions other than those stated in Exhibit “A”; and

(d)

subject only to the rights of any government authority having jurisdiction, no person, governmental entity or corporation or association of any kind is entitled to or has been granted any royalty or other payment in the nature of rent or royalty on any minerals, metals or concentrates or any other product mined, produced, removed or otherwise recovered, or to be mined, produced, removed or otherwise recovered, from the mining lots that are covered by the Concessions other than those stated in Exhibit “A”.

12.

Confidentiality

The terms of this LOI, including the terms of the proposed transactions contemplated hereunder and the fact that the parties are pursuing such transactions, are confidential and, except as expressly permitted by this LOI, neither party shall disclose any of such information to any person or entity without the prior written consent of the other. The foregoing will not apply to the extent that disclosure is required by applicable laws or a stock exchange or regulatory authority having jurisdiction.

13.

Announcements

Neither party shall make any public statement or issue any press release concerning the transactions contemplated by this LOI without the prior written consent of the other party, except as may be necessary in the opinion of counsel to the party making the disclosure to comply with the requirements of any applicable law.  If any such public statement or press release is so required, the party making such disclosure shall consult with the other party prior to making such statement or release, and the parties shall use all reasonable efforts, acting in good faith to agree upon a text for such statement or release that is satisfactory to all parties.

14.

Expenses

SD-CHRE and Tara agree that all out-of-pocket expenses and disbursements incurred in connection with this LOI and the completion of the transactions contemplated herein, including fees and expenses relating to legal, tax, accounting matters and financial advisor fees, will be paid by the party incurring such expenses in the event that the LOI is terminated. In this event, SD_CHRE is under no obligation to turn over data developed.

15.

Assignment

(a)

SD-CHRE shall not have the right to sell, transfer and assign this LOI and related documents to any affiliate or arm’s length third party without the prior written consent of Tara. (other than Nominee to include Principals of Springbok & Claridge-Hanlon)



9




(b)

Tara shall not assign all or any part of its interest in this LOI or related documents or the Project to a third party that is not an affiliate of Tara without the prior written consent of SD-CHRE.

16.

Termination

The LOI will terminate with the parties having no obligations to each other, other than the obligations contained in Section 18, on the date (the “Termination Date”) of the earliest of the following events:

(a)

written agreement of the parties to terminate the LOI;

(b)

the Definitive Agreement not being executed and delivered by the  parties on or before 90 days from the Effective Date, or such other date as the parties may agree upon in writing;

(c)

the execution of the Definitive Agreement;

(d)

either of the respective boards of directors of SD-CHRE or Tara not approving the transactions contemplated by this LOI;

(e)

any applicable regulatory authority having notified either party, in writing, that it will not permit the transaction to proceed.

17.

Exclusive Dealings Pending Completion of the Definitive Agreement

From the Effective Date until such time as the Definitive Agreement is executed or this LOI is terminated in accordance with Section 16 (the “Exclusivity Period”), in consideration of the time and resources that parties will devote to settling the Definitive Agreement, Tara agrees not to enter into any form of agreement for the sale, disposition or transfer of the Concessions or any interest in the Concessions with any third party.

18.

Binding Provisions

The obligation of CHRE to return information under Section 3 and the obligations of the parties under Sections 10(b), 12, 13, 14, 16, 17, 19, 20 and 21 of this LOI (collectively, the “Binding Provisions”) are all intended to be binding on the parties, and each party acknowledges that it has received good and fair consideration in respect of the foregoing Sections and, to this end, each party will pay to the other party the sum of US$10.00 as recognition of that consideration, which is deemed to be paid and received.   Other than with respect to the Binding Provisions, this LOI does not result in the formation of a legally binding agreement between the parties.  A legally binding agreement will not be formed unless and until the parties have negotiated, settled, executed and delivered the Definitive Agreement.

19.

Entire Agreement

The Binding Provisions constitute the entire agreement between the parties.  




10




20.

Enurement

The Binding Provisions will be binding upon, and will enure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.

21.

Governing Law

This LOI, the Definitive Agreement and any other agreement or instrument contemplated by this LOI and their application and interpretation will be governed by and interpreted in accordance with the laws of Nevada and the applicable federal laws of the United States.

22.

Execution of LOI

The terms of this LOI are open for acceptance until May 3, 2011 at 5:00 p.m. PST after which time this LOI and the terms set out herein shall expire.  If you are in agreement with the terms of this LOI, please sign and return to my attention one executed copy.


I look forward to your response and advancing our mutual interest in the exploration and development of the Don Roman Project.

Yours truly,




[ SIGNATURE PAGE TO FOLLOW ]





11















CLARIDGE-HANLON RESOURCE ENGINEERING,

A division of Hanlon Engineering & Architecture, Inc., an Arizona Corporation


 

 

Signature:

_____________________________

Name:

Robert J. Hanlon,

Title:

President


The terms and conditions of this LOI are hereby accepted and agreed to by the undersigned this ____3rd___ day of May, 2011.



Springbok Development, LLC



Signature:  ______________________________


Name:       ______________________________


Title:        _______________________________


The terms and conditions of this LOI are hereby accepted and agreed to by the undersigned this _______ day of May, 2011.





TARA MINERALS CORP.




Signature:      ________________________

Name Print:

Francis R Biscan Jr

Title:

            President

 

 

 




12




Exhibit “A”


Don Roman Project Concessions


Proyecto:

DON ROMÁN

 

 

 

 

 

Title

Name

Hectares

Municipality

Estado

208,524

María de Lourdes

200.0000

Choix

Sinaloa

217,789

La Nuvia

11.7580

Choix

Sinaloa

218,519

Nuvia 2

28.9484

Choix

Sinaloa

222,489

Santa Lucía

21.4072

Choix

Sinaloa

226,470

Don Román

57.1999

Choix

Sinaloa

 

Total =

319.3135

 

 

 

 

 

 

 

Proyecto:

CHOIX/PILAR

 

 

 

 

 

Title

Name

Hectares

Municipality

State

218,590

La Víbora

48.0000

Choix

Sinaloa

222,496

La Amapita

50.0000

Choix

Sinaloa

228,090

Elizabeth

100.0000

Choix

Sinaloa

229,039

Montaña de Cobre

191.0000

Choix

Sinaloa

229,041

El Sabino

100.0000

Choix

Sinaloa

229,043

Cobriza

205.0000

Choix

Sinaloa

230,342

El Oro

400.0000

Choix

Sinaloa

230,886

La Reforma

395.5419

Choix

Sinaloa

 

Total =

1489.5419

 

 

 

 

 

 

 

Proyecto:

CENTENARIO

 

 

 

 

 

Title

Name

Hectares

Municipality

State

229,013

El Mono

100.0000

Choix

Sinaloa

229,014

Reyna

100.0000

Choix

Sinaloa

229,015

Centenario

400.0000

Choix

Sinaloa

230,121

La Verde

400.0000

Choix

Sinaloa

231,261

El Mono

200.0000

Choix

Sinaloa

231,262

El Sol

200.0000

Choix

Sinaloa

235,307

Sanaloya

4654.3039

Choix

Sinaloa

235,308

Sanaloya Fracción A

3.7305

Choix

Sinaloa

 

Total =

6058.0344

 

 

 

 

 

 

 



13







Proyecto:

LA PALMA

 

 

 

 

 

Title

Name

Hectares

Municipality

State

230,341

La Verde 3

110.1261

Choix

Sinaloa

233,630

La Verde 4

396.9300

Choix

Sinaloa

233,738

La Verde 6

412.7720

Choix

Sinaloa

233,203

El Pino

400.0000

Choix

Sinaloa

236,500

Choix

496.3632

Choix

Sinaloa

236,501

La Palma

287.8208

Choix

Sinaloa

 

Total =

2104.0121

 

 

 

 

 

 

 

Proyecto:

LA VERDE

 

 

 

 

 

File #

Name

Hectares

Municipality

State

095/13646

Mina el Rosario

54.2402

Choix

Sinaloa

095/13521

La Verde 5

72.7999

Choix

Sinaloa

 

Total =

127.0401

 

 


·

Tara has the beneficial rights to all the concessions above except for Mina el Rasaro (file # 095/13646) and La Verde 5 (file # 095/13521). The agreements for these two concessions have been notarized.


·

All concession acquisition payments regarding the above concessions is the responsibility of Tara.  There are payments outstanding for several concessions and these will be summarized within the Definitive Agreement.


·

Tara will provide the underlying vendor agreements for the concessions within the Definitive Agreement. Other than acquisition payments, the Operator will be responsible for meeting all the vendor terms and keeping the concessions in good standing.




14



EX-10.7 8 f107acquisitionagreementtani.htm ACQUISITION AGREEMENT ??? TANIA IRON ORE PROPERTY Converted by EDGARwiz

RENDERING OF SERVICES CONTRACT CELEBRATED ON ONE HAND BY A) AMERICAN METAL MINING, S. A. DE C. V:, REPRESENTED IN THIS ACT BY MR. RAMIRO TREVIZO LEDEZMA IN HIS PERSONALITY AS LEGAL REPRESENTATIVE (HENCEFORTH KNOWN AS THE “CLIENT”) AND ON THE OTHER BY MACO PBB, S. A. DE C. V., REPRESENTED IN THIS ACT BY MR. CARLOS ALBERTO MARTÍNEZ IN HIS PERSONALITY AS LEGAL REPRESENTATIVE (HENCEFORTH KNOWN AS THE “LENDER”) IN ACCORDANCE WITH THE FORTHCOMING STATED PREVIOUS RECORDS, DECLARATIONS AND CLAUSES.



CLAUSES



I.

In recently past days, the CLIENT subscribed a transfer of mining rights contract   with different people in order to acquire 100 % of the rights derived from the   concession named “TANIA”, described in detailed in the table immediately below   (the “CONCESSION”):



Title

n/d

File

102/00407

Surface

3,233-01-47 Hectares

Locaton

Pedro Núñez Ejido, Municipality of Manzanillo, Stateof Colima.




II.

The CLIENT requires the support of people involved in mining expertise,

specifically in the process of diverse mineral materials to be extracted from the   location comprising the CONCESSION in order to obtain concentrate from such   material;


III.

The CLIENT estimates that the LENDER accounts with the necessary and

sufficient materials as well as human resources in order to completely comply with   the obligations he contracts by the subscription of this instrument;


IV.

The LENDER considers that the CLIENT satisfies the economic resources

required and, additionally, the solvency and liquidity in order to satisfy completely   the obligations he contracts by the subscription of this present contract, and;


V.

By virtue of the before stated, PARTIES have decided to subscribe this present

contract in writing.



DECLARATIONS



1


RENDERING OF SERVICES CONTRACT SUBSCRIBED BETWEEN AMERICAN METAL MNING, S. A. DE C: V: AND MACO PBB MEXICO, S. A: DE C: V: ON THE 4TH MAY 2011.



I.

The CLIENT declares through the offices of his legal representative and under oath   of stating the truth, that:


1: It is a Mexican mercantile society, specifically a Stock Company with Varying   Amount of Capital, duly established and in operation in agreement with the   applicable and current legislation of the United States of Mexico, as witnessed in   Public Writ number 17,227, granted on the 4th December 2006 before testimony of   Mr. Eugenio Fernando García Russek, Attorney at Law and applicant to the office   of Notary Public, and ascribed to Public Notary number 28 of the Morelos Judicial   District, State of Chihuahua and acting as Public Notary per license of the office’s   title holder Mr. Felipe Colomo Castro, Attorney at Law, and instrument that was   duly inscribed before the Public Registry of Property and Commerce of said district   under electronic mercantile folio number 23,327*10 as of the 22nd December 2006,   and reason why he enjoys the sufficient and necessary capacity to intervene in this   present judicial act;


2.  Its representative enjoys the faculties, powers, the sufficient and necessary

mandates in order to subscribe this present contract in representation of the   LENDER as indicated in this present instrument in its before stated numeral, same   that have not been restrained, limited, suspended or revoked to date;


3. It accounts with the sufficient and necessary economic resources, as well as with   the corresponding solvency and liquidity in order to completely satisfy the   obligations he contracts by virtue of this present contract;


4. To be duly inscribed in the Federal Taxpayers Registry with Fiscal Identification   Card number AMM-061204-4R7 and being to date current in his income tax   payments and other contributions and taxes that might have corresponded in   accordance with the applicable and current legislation concerning fiscal matters.


5. It is the will of its Administration Board to subscribe this present instrument

with the purpose that the LENDER undertakes all of the necessary activities to   adequately process the mineral material mentioned above.



II.

The LENDER declares through the offices of his legal representative and

under oath of stating the truth, that:


1. It is a mercantile society, specifically a Stock Company with Varying Amount of   Capital, duly established and in operation in agreement with the applicable and   current legislation of the United States of Mexico, as witnessed in Public   Writing   number 45256 granted on the 4th May 2011 before testimony of Mr. Jesús Orlando   Padilla Becerra, Attorney at Law Public Notary number 30 of the State of Mexico   and instrument that was duly inscribed before the Public Registry of Property and   Commerce of said district under electronic mercantile folio number (__________)   as of the (_________).




2


RENDERING OF SERVICES CONTRACT SUBSCRIBED BETWEEN AMERICAN METAL MNING, S. A. DE C: V: AND MACO PBB MEXICO, S. A: DE C: V: ON THE 4TH MAY 2011.



2. Its representative enjoys the faculties, powers, the sufficient and necessary

mandates in order to subscribe this present contract as evinced in Public Writing   number 45256, granted on the 4th May 2011 before testimony of Mr. Jesús Orlando   Padilla Becerra, Attorney at Law and Public Notary number 30 of the State of   Mexico, instrument that is duly inscribed in the Public Registry of Property and   Commerce of said district under electronic mercantile folio number (_____) as of   the (____) of May 2011, and same that have not been limited, suspended or revoked   in any manner whatsoever to date;


3. That it in effect accounts with the necessary, sufficient human and material

resources to comply with the obligation he contracts by virtue of this contract and,   additionally, with the experience required in the mining field;


4. That he knows the location where the undertaking will be carried out object of   this present contract having already inspected them thoroughly and, consequently,   having become familiar with the properties and characteristic of same as well as   with factors that will intervene in the execution of same labors;


5. He is aware and understands the applicable and current legal dispositions in

mining  matters of the United States of Mexico, as well as with the studies, projects,   prints, specifications, work programs, budgets and other adjoined documents to this   present contract as Annexes;


6. To be duly inscribed in the Federal Taxpayers Registry with Fiscal Identification   Card (_____) and being to date current in his income tax payments and other   contributions and taxes that might have corresponded in accordance with the   applicable and current legislation concerning fiscal matters, and;


7. It is the will of its Administration Board to subscribe this present instrument

with the purpose of undertaking the necessary activities for the adequate execution   of the services in favor of the CLIENT.



III.

Both PARTIES declare, through their respective legal representatives, under oath   of stating the truth that they assist to the subscription of this contract per their own  and free will, free of deceit, violence, error, harm or any other vitiation in their   consent in order to commit themselves with the following:



CLAUSES


FIRST. OBJECT:  The CLIENT entrusts the LENDER and the LENDER accepts to carry out at location covering the CONCESSION the services of extraction and process of materials and minerals obtained from same that the CLIENT will indicate, specifically the iron metal, among others (the SERVICES) in exchange for a unit price payment per ton indicated in the Third Clause of this instrument as per the terms and conditions set down in the forthcoming clauses:



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SECOND. QUALITY OF CONCENTRATE:  In order that the CLIENT is in the possibility f paying the unit price per ton indicated in the following clause, each concentrate ton of the processed mineral material by the LENDER must have a minimum of 60 & (sixty per cent) of iron ore, in the understanding that if said concentrate does not meet the referred to percentage, the CLIENT will not be obliged to pay for it, a risk imputable to the LENDER due to the low mineral concentrate encountered at lot.


In the event the concentrate does not meet the described specifications in the above written paragraph, the LENDER commits itself to process it once more in order to increase the required characteristics by the CLIENT and specified in this instrument, risk not imputable to the LENDER due to the low mineral concentrate found at lot.



THIRD. TERMS AND CONDITIONS: In order to describe the manner in which the SERVICES must be rendered by the LENDER in favor of the CLIENT, there follows the principal terms and conditions applicable to this present contract:


1. The LENDER commits himself to put in use for the rendering of the SERVICES   the totality of machinery and equipment necessary for the purpose, taking charge of   locating them at the site of the CONCESSION or at any other location as is   convenient for the correct rendering of the SERVICES, as well as to withdraw   stated machinery and equipment upon finishing the works. The list of machinery   and equipment that the LENDER must use for the rendering of the SERVICES is   adjoined to this instrument and Annex I.


2. SERVICES will include cutting into the natural terrain, understanding that this   land excavation will be in a determined environment with the purpose of ripping the   land’s over load and reducing the level enabling the conformation of an adequate   support platform for such an effect. Likewise, it will include the removal of the   overburden in the natural terrain should there be the need of, as well as the removal,   the load and hauling of the material, rocks and land as debris generated by the   execution of the SERVICES; this will include the yard explanade, the engineering   and maintenance of the lot’s access roads.


3. The CLIENT commits himself to receive and pay the totality of the concentrate   of the processed mineral material due to the execution of the SERVICES, if and   ever it complies to the specification agreed upon in this present document.


4.  The LENDER will deliver to the CLIENT the concentrate at the site of the

CONCESSION as process goes along. However the before stated, the LENDER   will only be able to carry out payment as per the Sixth Clause of this contract per   each 10,000 (ten thousand) tons delivered to the CLIENT.


5. In case the CLIENT needs a modification to the specifications of the concentrate,   he will solicit such to the LENDER at least 72 (seventy two) hours in advance from   the date he requires. In this case, the unit price previously convened may be   modified by the PARTIES.



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FOURTH. COUNTERCLAIM: The CLIENT commits himself to pay to the LENDER for the rendering of SERVICES, per each ton of iron ore concentrate delivered as per the before set specification the amount indicated following:



Product

Type/tma

Quality

Unit measure

Unit Price – USA Dollars per ton

Mineral material

Iron ore sands

60% minimum iron ore

ton

$7.75 Dollars



The totality of the works or services entrusted in this contract to the LENDER amount to an important value of: $23,250,000.00 (twenty three million two hundred and fifty thousand Dollars 00/100 in United States Currency), if and ever the deposit merits the volume and mineral quality and, if and ever it gathers the requirements of economic feasibility to both parties.


On the other hand, PARTIES convene that the unit price before mentioned can be reviewed each 90 (ninety) days during the duration of this present contract.



FIFTH. ADVANCE: The CLIENT obliged himself to surrender as of this date an advance of $175,000.00 Dollars (One hundred and seventy five thousand Dollars 00/100 in United States Currency) in the understanding that it must be applied by the LENDER for office construction, buildings, warehouses and installations, and be it the case, for moving machinery and construction equipment necessary for the rendering of services object of this present contract.


The amount of the advance will be charged to the COUNTERCLAIM to be paid by the CLIENT and will amortized during the first 6 (six) months of duration of this present contract, applying at least 20 % (twenty per cent) to the import of each estimate carried out due to the execution of the SERVICES rendered by the LENDER to such an effect.


In case there be a balance lack to be amortized, this must be liquidated at final estimate, that is, the last to be presented for payment on the part of the LENDER.



SIXTH. ESTIMATES: The LENDER expressly agrees that in addition to the advance amount referred to in the Fifth Clause, the remaining COUNTERCLAIM must be paid in agreement with the terms and conditions before stated, that is, per each 10,000 (ten thousand tons) of iron ore concentrate delivered to the CLIENT in agreement with the unit price set down in the Fourth Clause of this instrument.


In order for the CLIENT to be in the possibility of knowing the quality of the iron ore concentrate and is able to pay the described estimates in favor of the LENDER according to the counterclaim indicated in this contract, PARTIES agree that the CLIENT will



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submit said concentrate to a specialized lab in the matter and of his choice, and payment for said estimates must be done once the lab certificate has been issued certifying the ore’s quality as per the previous Second Clause, in the understanding that the cost of such a certificate will be paid by the CLIENT.



SEVENTH. MANNER AND PLACE OF PAYMENT:  The portion of the paid COUNTERCLAIM in cash, will be carried out by the CLIENT in favor of the LENDER through the means of a bank deposit or electronic transfer of funds to bank account number 8005467, Branch 573, CLABE number 0021 8005 7380 0546 76 of Banamex Banking Institution within the following 5 (five) able days of the date in which the specified amount to be paid if made known.


Against payment of any amount, the LENDER must issued and deliver to the CLIENT the corresponding vouchers heeding in every instance to the applicable and current fiscal dispositions.



EIGHTH. TERM OF EXECUTION: The LENDER obliges himself to begin the undertakings object of this present contract within 21 (twenty one) able days following the signature of this present instrument, on one hand or payment of the corresponding advance on the other, in the understanding that commencement will begin as of the last matter that takes place. Considering the nature of the SERVICES, the LENDER commits himself to end the SERVICES as becomes convenient to the CLIENT.



NINTH. DURATION: This present contract will begin to be in effect as of the date of its subscription and will remain current until the date of the termination of the SERVICES and the corresponding end payment. Non the less, depending upon the nature and difficulty of the works object of this contract as well as by the entrustment on the part of the CLIENT of additional or different works, the duration of same can be extended both PARTIES agreeing.



TENTH. DOCUMENTATION AND ADMINISTRATIVE PERMITS: The whole of permits, authorizations or whatever other similar administrative document must be obtained by the CLIENT and submitted to the LENDER in ordinary copy in order to allow the beginning of the SERVICES.



ELEVENTH. QUALITY OF SERVICES: PARTIES convene that the execution of the totality of the SERVICES object of this contract be carried out to the CLIENT’S satisfaction.


TWELFTH. RECEIVING CONCENTRATE: The LENDER will solicit from the CLIENT for this latter to deliver the concentrate sent to him for process as soon as



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possible. The CLIENT will undergo reception of concentrate in order to ship it to the corresponding certification lab.


THIRTEENTH. SUBCONTRACTING: For the execution of the SERVICES the LENDER will make use of its own working force. However, in order to proceed to a partial subcontract of the works object of this present instrument, (will be) per the exclusive criterion of the LENDER for the execution of the SERVICES. In any case, the LENDER will answer to the CLIENT for the works carried out by such individuals, and holding to himself to (claim) against them in case of an undue execution of the works that might have been entrusted to them.


FOURTEENTH. LABOR RELATIONS: The LENDER will be the responsible entity for the obligations derived from the applicable and current legal dispositions in labor matters and of social security, expressly accepting to answer to all the claims that his work force could present against him or against the CLIENT related to the works object of this contract.


When the LENDER should entrust the execution of the mentioned works to any individual or corporation employing people in the development of its activities, (either of these latter) will be the only responsible entity for the obligations derived from the applicable and current legal dispositions in labor matters and of social security, and be subject to expressly accept all the claims that their workers could put up against the CLIENT or the LENDER in relation to the works object of this present instrument.


In case, the LENDER commits himself to safeguard the CLIENT and peacefully protect him from any claim that by reason of this contract his own workers might intend on one hand or the subcontractor’s workers to whom he has partially or in total entrusted the works object of this contract on the other.



FIFTEENTH. SERVICE SUPERINTENDENT: The LENDER commits himself to name, in advance of the beginning of the works object of this present contract, a representative who will remain per possible means at the site of such labors and who will act as construction superintendent, individual who will enjoy the powers, the widest and sufficient faculties for decisions in anything related with the compliance of this instrument. Per criterion of the LENDER, the said superintendent could be his worker on one hand or any (third party) service render on the other. The CLIENT, in case of experiencing any kind of incompetence on the part of the nominated superintendent can request he be replaced at any time during the execution of the SERVICES.



SIXTEENTH. MATERIALS AND EQUIPMENT: The LENDER commits himself that the machinery and equipment put to use in the works object of this present contract comply with the established standards, applicable and current, in the construction field as well as with the particular specifications of the project being part of this instrument, and vying in every instance they be of the best possible quality available.




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SEVENTEENTH. EQUIPMENT AND WORK SUPERVISION: The CLIENT will be endowed to verify at any moment if the work object of this contract is being carried out by the LENDER in conformity with the dispositions, the specifications and the corresponding work program set down in the project be it personally or through the offices of a third party he names.



EIGHTEENTH. LENDER’S CIVIL RESPONSIBILITY: Taking into consideration that during the execution of the SERVICES mechanical instruments will be used as well as dangerous substances and instruments per themselves due to the speed they carry either by their explosive or flammable nature, or by the energy of the electric current they bear or by any other analogue reason, in conformity with the dispositions of the applicable articles of the Civil Code of the Federal District, the LENDER will be obliged to answer for the damages caused by the materials he uses, his workers or the persons he subcontracts, independently that such individuals act illegitimately or not, unless it is proven that the damage occurred by the fault or the inexcusable negligence of the victim; also, the LENDER will have to answer and to repair the whole of the damages caused by his workers to the goods of the CLIENT, or to his subcontractors, the buildings, housing, roads, real estate or any other mobile good of nearby neighbors to the CLIENT’S site, as well to the infrastructure already built in the developed land located in the CLINET’S premises as could be retainer walls, yards, fences, hydraulic systems or any other kind of infrastructure already built at the moment of carrying out works on the part of the LENDER.


Consequently, the LENDER commits himself to safeguard and peacefully protect the CLIENT from any claim that by reason of the execution of the works object of this present contract his own workers might intend, or the subcontractor’s workers to whom he partially or in total entrusted carrying out same works per concept of damages.


In any case, the LENDER keeps to himself the right to (claim) against his own workers or of the subcontractor’s workers to whom he entrusted the execution the object of this present instrument when he pays for the damages they caused among themselves or to third parties.



NINETEENTH. CONFIDENTIALITY: PARTIES commit themselves expressly to kept in a confidential character the totality of past, present and future information related with this present instrument and extending same obligation to any individual or corporation it is disclosed to.


The PARTY recipient of confidential information must limit access to it to his representatives or employees who, under a justified and reasonable cause might request access to it. In such cases, PARTIES must commit such entities to the confidentiality obligations agreed upon in this instrument.


For purposes of this present clause, the following will not be considered confidential information: 1. Information legitimately known and obtained by the recipient PARTY prior to the subscription of this instrument; 2. Information that is considered as of date or in th



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future as public domain if and ever such consideration did not stem from the non compliance of any of the PARTIES to the stipulations in this clause, or; 3. Information that has to be disclosed per law or an administrative or judicial mandate by competent authorities.


PARTIES agree that the duration of the obligations contracted by virtue of this present clause will subsist indefinitely, even after the termination of this present contract.


In case of non compliance, PARTIES reserve to themselves those actions that per law correspond to them, both administrative and judicial, in order to claim indemnity for harms and damages, as well as to present any sanction be it the case.



TWENTIETH. ADVANCE TERMINATION: PARTIES agree that only the CLIENT is the one able to desist from the execution of the SERVICES on one hand or to suspend same in a temporary manner on the other, in whole or partially, and notifying in writing at least 15 (fifteen) natural days prior its counterpart only after covering in favor of the LENDER all non recoverable expenses and works carried out, if and ever these are reasonable, are duly proven and related with the execution of the SERVICES.



TWENTY FIRST. GUARANTEE: In order to guarantee the correct application of the amount extended as advance, as well as the compliance of this contract, the LENDER must subscribe upon the date of signature of this present contract a promissory note in favor of the CLIENT for the amount of $175,000.00 Dollars (one hundred and seventy thousand Dollars 00/100 in United States Currency) and which was subscribed with an expiration dateline of the 1st January 2012 (1/1). This guarantee will remain in effect until the totality of the advance is returned.


TWENTY SECOND. CANCELLATION OF CONTRACT:  PARTIES convene that the CLIENT can cancel this present contract in case of non compliance on the part of the LENDER. Such cancellation will bear full rights without the need of a judicial declaration it being sufficient that any of the below indicated cause may arise:


1. If the works object of this present contract are not begun on the stated date of

commitment, if and ever to the CLIENT’S judgment the delay cannot be   reprogrammed;


2. If the SERVICES are stopped without any justification or reparation is denied or   a reposition of any portion of them that might have considered flawed by the   CLIENT;


3. If the works are not carried out in conformity with the stipulation of this

instrument and it Annexes;




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4.  If the work schedule does not meet the program and per the CLIENT’S

judgment this delay can impair a satisfactory conclusion of the works within the   stipulated date line.


5. If it does not in all opportunity cover the workers’ salaries and other labor

benefits and of social security on one hand and, on the other, stops paying the   entrusted service renderers;


6. In general, for non compliance or violation on the part of the LENDER to any of   the obligations derived from this present contract as well as from the applicable and   current legal dispositions.


Likewise, PARTIES convene that the LENDER can cancel this present instrument    in case of non compliance to any of the obligations set down herein, on the part of   the CLIENT, such as payment of the amounts per advance concepts, advance   estimates, administrative paper work and discharge, be it the case, in full right,   without the need of a judicial declaration.


TWENTY THIRD. CANCELLATION PROCEDURE: In case of non compliance or of violation by any of the PARTIES to any of the stipulations of this present contract, they can chose to demand compliance to same and of the conventional penalties agreed upon, declare cancellation of this instrument as per the following procedure:


1. If any of the PARTIES considers that the other has incurred in any of the causes   of cancellation consigned in this contract, he will so advise its counterpart that this   latter may expose regarding what is within his right within a term of 10 (ten) able   days as of the date of reception of the respective notification, and;


2. If the time term lapses on the part of the non compliant and it does not state

arguments in his defense on one hand, or if after analyzing the reasons invoked it   does not produce proof, the other part considering same are not satisfactory, within   the following 15 (fifteen) able days it will declare cancellation of the contract and   will communicate so stating its arguments.



TWENTY FOURTH. FORTUITOUS EVENT OR FORCE MAJEURE:  When due to a fortuitous event or of case majeure it becomes impossible to continue with the works’ execution, the LENDER may stop the SERVICES temporarily, or, chose for an advance termination.. In this last case, it must put its request before the CLIENT immediately after the occurrence of the causes of origin, and he will resolve how to proceed within 15 (fifteen) able days following the reception of same. In case of a negative answer on the part of the CLIENT, it will become necessary for this latter to obtain the corresponding declaration from the competent judicial authority.


In the event the temporary suspension is granted, the corresponding modifications must be established through the means of an agreement concerning the approved work program as well as the measures that must be implemented to safeguard the works and materials.



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Likewise, in such an agreement the time terms of suspension must be made known as well as the renewal of works and work termination without modifying the established dateline in the contract.


TWENTY FIFTH. FISCAL OBLIGATIONS: On being approved and registered before the Federal Taxpayers Registry, PARTIES convene that each on its own will defray and separately tax payments that individually correspond to each in order to comply with the terms and conditions of this present instrument, heeding the applicable and current fiscal legislation, committing themselves to safeguard their counterpart regarding any fiscal responsibility that might be wrongly imputed by competent authorities in accordance with this contract.



TWENTY SIXTH. ADDRESSES AND CONTACT TELEPHONES: PARTIES agree that in everything regarding the execution and compliance of the terms and conditions of this present contract, as well as to carry out notices, announcements and other communications related with same, they state their addresses and contact telephones to be:



The Client


Calle California 5101, interior 206

Col. Haciendas Santa Fe

C. P. 31215

Chihuahua, Chih.


Phone: 01-614-200-8403

The Lender


Av. Jorge Jiménez Cantú Mz. 1 it s/n

Col. Bosques Esmeralda

C. P. 52930

Atizapán de Zaragoza, Estado de México


Phone: 01-55-5308-7452




In case it is their will to change addresses, PARTIES agree in notifying their counterparts of such a circumstance at least five (5) natural days in advance of the date in which the addresses are changed. Not complying to the obligation herein described will imply that the announcements, notifications or communications sent and delivered at the original address of the PARTY carrying the change of address, will bear full legal effects in favor of the PARTY that was not notified in all opportunity as of the date of delivery and for as long as the non compliance subsists.


TWENTY SEVENTH: NOTIFICATIONS AND COMMUNICATIONS: PARTIES agree that any announcement, notification or communication necessary to their counterparts know must be done in writing. The before stated does not means that telephone communications between them is not agreed upon or permitted but that the relevant communications must be carried out in writing for a better judicial understanding on both PARTIES.


Sending of said documents can be carried out via three means: 1. By ordinary courier delivered on hand or by certificate mail, both with acknowledgement of receipt; 2. Via Fax



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or; 3. By electronic mail. In this last case, sending will only be considered valid and legally carried out when the reception of the respective electronic mail is confirmed electronically within three (3) natural days following the sending expressly stating receipt, by means of a confirming answering message sent by the recipient.


PARTIES agree likewise that announcements, notifications and communications carried out in relation to this present instrument will bear their respective effects on the day of their reception. In case that such message include some kind of term, this latter will begin to be in effect on the day following confirmation of reception regardless it is an able or natural day.


TWENTY NINTH. CONTACT PERSONS: PARTIES agree that the totality of announcements, notifications or communications necessary to be carried out between them derived from the terms and conditions of this present instrument must be addressed indistinctly to the following persons:


The Client


RAMIRO TREVIZO LEDEZMA

RAMIRO TREVIZO GONZÁLEZ

The Lender


CARLOS ALBERTO MARTÍNEZ URIBE

EDSEL COSÍO BARRAZA



In case it is their will to change contact persons, PARTIES agree in notifying their counterparts of such a circumstance at least five (5) natural days in advance of the date in which the persons are changed. Not complying to the obligation herein described will imply that that the announcements, notifications or communications sent and delivered to the name of the original addressees of the PARTY carrying the change of address, will bear full legal effects in favor of the PARTY that was not notified in all opportunity as of the date of delivery and for as long as the non compliance subsists.



THIRTIETH. ANNEXES AND TOTALITY OF CONTRACT: PARTIES accept expressly in obliging themselves in accordance to the terms and conditions established in this present instrument and adjoining annexes, same that on being signed make up part of same as if inserted verbatim.


Thus, PARTIES accept that this contract and its annexes contain the totality of agreements between them regarding its object and leaving without effect as well as canceling the whole of agreements, reports, negotiations, correspondence, commitments and communications carried out previously between them either in writing or verbally.



THIRTY FIRST. MODIFICATIONS: The terms and conditions of this present contract can only be modified by virtue of the subscription of modifying agreements between the PARTIES. To such agreements must be added, as annexes an ordinary copy of this



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instrument and its Annexes vying in all cases to reach a complete interpretation of the terms and conditions that the PARTIES might have agreed upon.



THIRTY SECOND. INDEPENDENCE OF THE CLAUSES: In case that one of the clauses of this present instrument is declared invalid by a competent authority, the clause of them contained in same will remain being valid without them being affected by the respective resolution in any way whatsoever.


THIRTY THIRD: APPLICABLE LEGISLATION: PARTIES commit themselves to strictly abide for the execution of the works object of this contract to each and all of the clauses it integrates and in a complementary manner to the dispositions set down in the Civil Code of the Federal District.


THIRTY FOURTH. INTERPRETATION AND JURISDICTION: Conflicts that might arise regarding the interpretation and compliance with this present contract must be resolved by common agreement by the PARTIES within a time lapse of 30 (thirty) natural days as of the date in which any of them notifies the other of the existence of conflicts.


In case the described conciliation is reached , PARTIES submit to the jurisdiction of the competent court of law of the Mexico City (Federal District), reason why as of this moment they renounce to the privilege that might correspond to them by reason of their present or future domiciles or by any other reason.



BOTH PARTIES IN THE KNOWLEDGE OF THE TERMS AND CONDITIONS OF THIS PRESENT CONTRACT , SIGN IT IN CONFORMITY IN EACH OF ITS PAGES IN DUPLICATE IN THE CITY OF MANZANILLO, STATE OF COLIMA, IN THE PRESENCE OF TWO WITNESSES WHO LIKEWISE SUBSCRIBE IT ON THE THIRD DAY OF MAY OF THE YEAR TWO THOUSAND AND ELEVEN, EACH PARTY KEEPING A COPY OF THE CONTRACT.



THE CLIENT


AMERICAN METAL MINING,

S.A. DE C. V.,

Represented in this act by:

RAMIRO TREVIZO LEDEZMA

THE LENDER


MACO PBB MÉXICO,

S. A. DE C. V.,

Represented in this act by:

CARLOS ALBERTO MARTÍNEZ URIBE


WITNESSES



Tzetzangari Ibarra Junquera


Elizabeth Rubí Rubio Campos





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Annex I


Equipment, machinery, vehicles and other



4 – MAQ 320H


1 – MAQ D8


1 – 12 X 36 screen with electrostatic equipment


2 – Electromagnetic bins


1 – Backhoe


2 – 4 X 4 Raptors


1 – Weighing machine


4 – ATHD ALLU SIS


1 – MAQ 966


1 – Camp set up


1 – Scraper


_____________________________________________________




(In last page there follows a signed promissory note of payment)


















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RATIFICATION OF SIGNATURES



The undersigned, René Manuel Tortolero Santillana, Attorney at Law, title holder of Notary Public number 4 of this demarcation, verify and---------------------------------------

Certify

that the signatures written at the bottom of this present contract are authentic and pertain to Messrs., Ramiro Trevizo Ledezma and Carlos Alberto Martínez Uribe as they were written in my presence and they stated that such signatures are the one they use in all of they acts public as private------------------------------------------------------------------------------------------


I, Public Notary, so certify and give faith thereof, that I know the appearing parties who in my concept enjoy the civil capacity to contract and to commit themselves according to law-


Reason was taken in the Certifications Book of this Notary Public in my charge in the city and port of Manzanillo, State of Colima on the 4th day of the month of May 2011-------------


I so give faith---------------------------------------------------------------------------------------------



THE CLIENT


AMERICAN METAL MINING,

S. A. DE C. V.,

Represented in this act by:


RAMIRO TREVIZO LEDEZMA

THE LENDER


MACO PBB MÉXICO

S. A. DE C. V.,

Represented in this act by:


CARLOS ALBERTO MARTÍNEZ URIBE


BEFORE ME


RENÉ MANUEL TORTOLERO SANTILLANA


OFFICE TITLE HOLDER


PUBLIC NOTARY NUMBER 4


MANZANILLO, COLIMA


###



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EX-31.1 9 f11march10qex311.htm CERTIFICATION EXHIBIT 31

EXHIBIT 31.1

CERTIFICATIONS


I, Francis Richard Biscan, certify that;


1.

I have reviewed this quarterly report on Form 10-Q of Tara Minerals Corp.;


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, no misleading with respect to the period covered by the 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 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 make 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 provided 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: May 16, 2011

/s/ Francis Richard Biscan

Francis Richard Biscan,

Principal Executive Officer






EX-31.2 10 f11march10qex312.htm CERTIFICATION EXHIBIT 31

EXHIBIT 31.2

CERTIFICATIONS


I, Lynda R. Keeton-Cardno, certify that;


1.

I have reviewed this quarterly report on Form 10-Q of Tara Minerals Corp.;


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, no misleading with respect to the period covered by the 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 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 make 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 provided 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:  May 16, 2011

/s/ Lynda R. Keeton Cardno

Lynda R. Keeton-Cardno

Principal Financial Officer



EX-32 11 f10sept10qex32.htm CERTIFICATION EXHIBIT 32

EXHIBIT 32.1


CERTIFICATION OF PERIODIC REPORT

TARA MINERALS CORP.

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

18 U.S.C. Section 1350


In connection with the transition report of Tara Minerals Corp. (the “Company”) on Form 10-Q for the quarter ended March 31, 2011 as filed with the Securities Exchange Commission on the date hereof (the “Report”), we, Francis Richard Biscan, the Principal Executive Officer of the Company, and Lynda R. Keeton Carno, the Principal Financial Officer of the Company, certify pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

  

(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 operation of the company.





Date:   May 16, 2011

/s/ Francis Richard Biscan

Francis Richard Biscan,

Principal Executive Officer





Date:   May 16, 2011

/s/ Lynda R. Keeton-Cardno

Lynda R. Keeton-Cardno,

Principal Financial Officer






EX-101.INS 12 tarm-20110331.xml false --12-31 Q1 2011 2011-03-31 10-Q 0001387054 60106087 Smaller Reporting Company Tara Minerals Corp. 84438 -750000 212744 21203 2163485 2163485 6000 923004 1595971 3396713 -6138 -73760 -114790 -1127368 783090 59462 53368 500000 281489 2368645 348549 1281655 -1310974 -3324485 986771 28368 -218502 -508814 1795245 12207 12207 57547213 51904807 755364 680221 353462 295925 -281640 -246253 26126261 24515978 1252689 1366533 3170 4692 1983575 10116599 11688935 385310 432901 2037 123310 157579 504907 1230376 -34269 -725469 123310 0.001 0.001 200000000 200000000 58479987 57236288 58479987 57236288 844685 1129696 0 212744 58480 57236 -1639435 -8708395 -23848045 658007 2309438 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 5.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 110px; text-align: justify; TEXT-INDENT: -2px"> <strong>Notes Payable</strong></p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The following table represents the outstanding balance of loans and capital leases for the Company as of March 31, 2011 and December 31, 2010.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="273"></td> <td width="111"></td> <td width="132"></td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="273"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>March 31, 2011</strong></p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="132"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>December 31, 2010</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="273"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>Unaudited</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="132"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>Audited</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="273"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="132"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="273"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Mining concession</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 93px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -84px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 205,229&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="132"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 109px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -100px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 100px"> 1,699,737&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="273"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Auto loans</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 86,337&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="132"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 119,766&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="273"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> Equipment</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> -&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="132"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 72,848&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="273"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 291,566&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="132"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 1,892,351&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="273"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Less - current portion</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 231,161</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="132"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 824,001</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="273"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Total - non-current portion</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 93px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -84px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 60,405&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="132"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 109px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -100px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 100px"> 1,068,350&nbsp;</p> </td> </tr> </table> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> During the three months ended March 31, 2011, one of the vehicles purchased in 2010 was stolen, the insurance claim was processed and the note payable and the fixed asset removed from the AMM&#39;s books. &nbsp;</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> During the three months ended March 31, 2011, AMM defaulted on an equipment capital lease entered into on July 21, 2010, the equipment was returned and removed from the books and treated as an operating lease.</p> <!--EndFragment--></div> </div> 1695000 2930982 2930982 70079 44020 366004 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 7.</strong></p> <p style="TEXT-INDENT: -2px; MARGIN: 0px; PADDING-LEFT: 110px; FONT-SIZE: 11pt"> <strong>Stock Compensation</strong></p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In January 2010, the Company granted two of its officer&#39;s options under its Incentive Stock Option Plan for the purchase of 750,000 shares of common stock. The options are exercisable at a price of $1.57 per share and vest at various dates until January 2017. The options expire at various dates beginning January 2015. &nbsp;As of March 31, 2011 options that vested in 2011 were valued at $182,735.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In September 2010, the Company granted options for 200,000 shares of common stock to an unrelated third party for investor relations services. The options have an exercise price of $1.00 per share, vest between September 2010 and March 2011 and expire two years from the date of vesting. As of March 31, 2011 options that vested in 2011 were valued at $36,353.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> No options or warrants were issued in the first quarter 2011.</p> <p style="MARGIN: 0px"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The fair value of each option award discussed above is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on volatilities from the Company&#39;s traded common stock. The expected term of options granted is estimated at half of the contractual term as noted in the individual option agreements and represents the period of time that management anticipates option granted are expected to be outstanding. &nbsp;The risk-free rate for the periods within the contractual life of the option is based on the U.S. Treasury bond rate in effect at the time of grant for bonds with maturity dates at the estimated term of the options.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <div style="text-align: right"> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0"> <tr style="FONT-SIZE: 0px"> <td width="510"></td> <td width="169"></td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong><u>2010</u></strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong><u>date of grant</u></strong></p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Expected volatility</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">208.37% - 319.79%</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Weighted-average volatility</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> 159.17%</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Expected dividends</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">0</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Expected term in years</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">0.75 - 4.50</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Risk-free rate</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">0.30% - 2.37%</p> </td> </tr> </table> </div> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt">A summary of option activity under the Plan as of March 31, 2011 and changes during the period then ended is presented below:</p> <p style="MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="238"></td> <td width="108"></td> <td width="102"></td> <td width="102"></td> <td width="80"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="238"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Options</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="108"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Shares</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="102"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Weighted-</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Average</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Exercise</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Price</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="102"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Weighted-</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Average</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Remaining</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Contractual</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>&nbsp;Term</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="80"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Aggregate</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Intrinsic</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>&nbsp;Value</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Outstanding at December 31, 2010</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 4,630,000</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 78px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -69px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 69px"> 0.05</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Granted</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> -</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 78px"> -</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Exercised</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> -</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 78px"> -</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Forfeited or expired</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 78px"> -</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Outstanding at March 31, 2011</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 4,630,000</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 78px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -69px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 69px"> 0.05</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">3.5</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">$2,025,000</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Exercisable at March 31, 2011</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 3,330,000</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 78px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -69px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 69px"> 0.46</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">3.5</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="MARGIN-TOP: 0px; WIDTH: 69px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -69px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 69px"> 2,025,000</p> </td> </tr> </table> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"><br /> &nbsp;</p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="392"></td> <td width="126"></td> <td width="105"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="392"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Nonvested Options</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="126"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Options</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="105"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Weighted</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>-Average</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Grant-Date</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>&nbsp;Fair Value</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="392"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Nonvested at December 31, 2010</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="126"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 116px"> 1,475,000&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="105"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 97px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -88px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> 1.37</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="392"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Granted</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="126"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 116px"> -&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="105"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 97px"> -</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="392"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Vested</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="126"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 116px"> 175,000</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="105"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 97px"> 1.22</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="392"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Forfeited</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="126"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 116px"> -&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="105"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 97px"> -</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="392"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Nonvested at March 31, 2011</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="126"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 116px"> 1,300,000&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="105"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 94px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -85px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 85px"> 0.86</p> </td> </tr> </table> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt">A summary of warrant activity under the Plan as of March 31, 2011, and changes during the period then ended is presented below:</p> <p style="MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="241"></td> <td width="106"></td> <td width="103"></td> <td width="100"></td> <td width="79"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="241"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Warrants</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="106"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Shares</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="103"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Weighted-</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Average</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Exercise</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Price</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="100"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Weighted-</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Average</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Remaining</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Contractual</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Term</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="79"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Aggregate</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Intrinsic</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Value</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Outstanding at December 31, 2010</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> 4,271,999</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 80px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -70px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 70px"> 0.65</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Granted</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> -&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 80px"> -</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Exercised</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> 125,000</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 80px"> 0.40</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Forfeited, cancelled or expired</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> -&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 80px"> -</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Outstanding at &nbsp;March 31, 2011</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> 4,146,999&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 80px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -70px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 70px"> 0.85</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">1.5</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">$ &nbsp;580,590</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Exercisable at March 31, 2011</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> 4,146,999&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 80px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -70px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 70px"> 0.85</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">1.5</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="MARGIN-TOP: 0px; WIDTH: 65px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -65px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 65px"> 580,590</p> </td> </tr> </table> <p style="MARGIN: 0px"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> All warrants at March 31, 2011 were vested.</p> <!--EndFragment--></div> </div> 76215 69143 3237827 3465232 -0.03 -0.17 -35387 -4877 -281640 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 9.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 110px; text-align: justify; TEXT-INDENT: -2px"> <strong>Fair Value</strong></p> <p style="MARGIN: 0px; CLEAR: left"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In accordance with authoritative guidance, the table below sets forth the Company&#39;s financial assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="237"></td> <td width="110"></td> <td width="95"></td> <td width="89"></td> <td width="82"></td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="378" colspan="4"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Fair Value at March 31, 2011</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Total</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 1</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 2</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 3</strong></p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Assets:</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">None</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Liabilities:</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Total notes payable</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> 291,566</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> 291,566</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Due to related parties, net of due from</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 86px"> 3,237,827</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 81px"> 3,237,827</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 58px"> -</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 58px"> -</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Total</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> 3,529,393</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="95"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> 3,529,393</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="89"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> </table> <p style="MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="237"></td> <td width="110"></td> <td width="103"></td> <td width="82"></td> <td width="82"></td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="378" colspan="4"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Fair Value at December 31, 2010</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Total</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 1</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 2</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 3</strong></p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Assets:</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">None</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Liabilities:</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Total notes payable, including related &nbsp;&nbsp;party</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> 1,992,351</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> 1,992,351</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Due to related parties, net of due from</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 86px"> 3,465,232</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 81px"> 3,465,232</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 58px"> -</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 58px"> -</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Total</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> 5,457,583</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> 5,457,583</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> </table> <p style="MARGIN: 0px"><br /> </p> <!--EndFragment--></div> </div> 430921 -4260 -4260 6178 12028 12028 -497586 -1610418 -8703518 -26904130 -2930982 78089 169573 777439 -127405 -107620 3422104 -83841 952 74030 8823 2076 118343 5309 221 2094109 34 25649 182451 6551 6694 142191 744685 1224375 1969060 4384757 6137804 10116599 11688935 4324352 5069454 60405 1068350 2550461 2056831 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 8.</strong></p> <p style="TEXT-INDENT: -2px; MARGIN: 0px; PADDING-LEFT: 110px; FONT-SIZE: 11pt"> <strong>Non-controlling Interest</strong></p> <p style="MARGIN: 0px; CLEAR: left"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> On January 28, 2011, Adit, sold 500,000 units at a price of $1.00 per unit to Yamana Gold Inc. &nbsp;Each unit consisted of one share of Adit&#39;s common stock and one half warrant. Each full warrant entitles Yamana to purchase one share of Adit&#39;s common stock at a price of $1.50 per share at any time on or before January 28, 2014.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In connection with the sale of the units, Adit also signed a letter of intent that grants Yamana an option to acquire up to a 70% interest in Adit&#39;s Picacho gold/silver project. &nbsp;A definitive agreement is expected to be completed May 15, 2011. &nbsp;Upon completion of the definitive agreement, Adit will sell an additional 2,500,000 units to Yamana at a price of $1.00 per unit. The units will be identical to the units sold on January 28, 2011. &nbsp;From the $3,000,000 received from Yamana, Adit will be required to spend $2,000,000 in exploration work on the Picacho project within 12 months of signing the definitive agreement. &nbsp;</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Yamana can earn a 51% interest in the project by spending an additional $5,000,000 on the project within 30 months of the date of the definitive agreement and paying Adit an additional $1,000,000. Yamana can increase its interest to 70% by spending an additional $9,000,000 on the project and paying Adit an additional $2,000,000.</p> <p style="MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="292"></td> <td width="172"></td> <td width="172"></td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Non-controlling interest at March 31, 2011</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Non-controlling interest at December 31, 2010</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Combined Adit / ACM:</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt">Private placement</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 149px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -140px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 140px"> 1,499,501&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 149px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -140px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 140px"> 1,499,501&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt">Common stock for cash</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 500,000&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> -&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt">Finder&#39;s fees</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 95,215&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 95,215&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt"> Technical data for Picacho</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 240,000&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 240,000&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt">Officer compensation</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 487,500&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 487,500&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt">Officer options</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 134,978&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 134,978&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt"> Cumulative statement of operations pickup through December 31, 2010</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 400,368</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 400,368</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">&nbsp;&nbsp;Statement of operations pickup 2011</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 6,370</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> -&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">AMM Non-controlling interest</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 5&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 5&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Total non-controlling interest</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 149px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -140px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 140px"> 2,550,461&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 149px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -140px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 140px"> 2,056,831&nbsp;</p> </td> </tr> </table> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <!--EndFragment--></div> </div> 573936 301960 11715733 23300 -154311 -3447231 -596118 -868241 -7863552 -1604048 -8703518 -23566405 -6370 -406743 600000 8073 7502 -1942004 231161 824001 100000 100000 695487 7115049 21067827 -1618491 -8711020 -24962126 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><!--StartFragment--> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 12px; WIDTH: 74px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 1.</strong></p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: -2px; PADDING-LEFT: 74px; MARGIN-BOTTOM: 4px; FONT-SIZE: 11pt"> <strong>Nature of Business and Significant Accounting Policies</strong></p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: -2px; PADDING-LEFT: 74px; MARGIN-BOTTOM: 4px; FONT-SIZE: 11pt"> &nbsp;</p> <p style="CLEAR: left; FONT-SIZE: 11pt; MARGIN: 0px; text-align: justify; TEXT-INDENT: 48px"> <u>Nature of business and principles of consolidation:</u></p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The accompanying Condensed Consolidated Financial Statements of Tara Minerals Corp. the "Company" should be read in conjunction with the Company&#39;s Annual Report on Form 10-K for the year ended December 31, 2010. Significant accounting policies disclosed therein have not changed, except as noted below.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The Company was organized May 12, 2006 under the laws of the State of Nevada. The Company currently is engaged in the acquisition, exploration and development of mineral resource properties in the United States of America and Mexico. &nbsp;The Company owns 99.9% of the common stock of American Metal Mining, S.A. de C.V. "AMM", which was established in December 2006 and operates in M&eacute;xico. The Company also owns 87% of the common stock of Adit Resources Corp., which in turns owns 99.9% of American Copper Mining, S.A. de C.V. "ACM", which was established in December 2006 and operates in M&eacute;xico. &nbsp;Adit Resources Corp. "Adit" was organized in June 2009 and ACM was purchased in June 2009. &nbsp;The Company currently has limited operations and, in accordance with the Financial Accounting Standards Board Accounting Standards Codification "FASB ASC" Development Stage Entities Topic, is considered an Exploration Stage Company.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Tara Minerals Corp. is a subsidiary of Tara Gold Resources Corp. "Tara Gold" or the "Company&#39;s Parent, a publicly traded company which trades under the TRGD symbol.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Unless otherwise indicated, all references to the Company include the operations of its subsidiaries, and all references to Adit include the operation of its subsidiary.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The accompanying Condensed Consolidated Financial Statements and the related footnote information are unaudited. &nbsp;In the opinion of management, they include all normal recurring adjustments necessary for a fair presentation of the condensed consolidated balance sheets of the Company at March 31, 2011 and December 31, 2010, and the condensed consolidated statements of operations for the three months ended March 31, 2011 and 2010. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. The consolidated financial statements include the financial statements of the Company, AMM, Adit and ACM. All amounts are in U.S. dollars unless otherwise indicated. All significant intercompany balances and transactions have been eliminated in consolidation.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The reporting currency of the Company and Adit is the U.S. dollar. The functional currency of AMM and ACM is the Mexican peso. As a result, the financial statements of the subsidiaries have been re-measured from Mexican pesos into U.S. dollars using i current exchange rates for monetary asset and liability accounts, ii historical exchange rates for nonmonetary asset and liability accounts, iii historical exchange rates for revenues and expenses associated with nonmonetary assets and liabilities and iv the weighted average exchange rate of the reporting period for all other revenues and expenses. In addition, foreign currency transaction gains and losses resulting from U.S. dollar denominated transactions are eliminated. The resulting re-measurement gain or loss is recorded as other comprehensive loss.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The financial statements of the Mexican subsidiaries should not be construed as representations that Mexican pesos have been, could have been or may in the future be converted into U.S. dollars at such rates or any other rates.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Relevant exchange rates used in the preparation of the financial statements for the subsidiary are as follows for the three months ended March 31, 2011. &nbsp;Mexican pesos per one U.S. dollar. &nbsp;</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <div style="text-align: right"> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0"> <tr style="FONT-SIZE: 0px"> <td width="514"></td> <td width="54"></td> <td width="91"></td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="514"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="145" colspan="2"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <u>March 31, 2011</u></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="514"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Current exchange rate</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="54"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Ps. &nbsp;&nbsp;&nbsp;&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="91"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 80px"> 11.9219</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="514"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Weighted average exchange rate for the nine months ended &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="54"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Ps. &nbsp;&nbsp;&nbsp;&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="91"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 80px"> 12.0782</p> </td> </tr> </table> </div> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px"><br /> </p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt"> <u>The Company&#39;s significant accounting policies are:</u></p> <p style="MARGIN: 0px"><br /> </p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt"> <u>Estimates</u></p> <p style="MARGIN: 0px"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Actual results could differ from those estimates.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt"> <u>Recoverable Value-Added Taxes IVA and Allowance for Doubtful Accounts</u></p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Each period receivables are reviewed for collectability. &nbsp;When a receivable is determined to not be collectable we allow for the receivable until we are either assured of collection or assured that a write off is necessary. &nbsp;We have recorded an allowance of $1,252,689 and $1,366,533 as of March 31, 2011 and December 31, 2010, respectively, in association with our receivable from IVA from our Mexico subsidiaries as we have determined that the Mexican government may not allow the complete refund of these taxes.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="MARGIN: 0px; PADDING-LEFT: 47px; FONT-SIZE: 11pt"> <u>Reclassifications</u></p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: justify"> <br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Certain reclassifications, which have no effect on net loss, have been made in the prior period financial statements to conform to the current presentation. &nbsp;</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <a id="_Hlk256669960" name="_Hlk256669960"></a> <p style="MARGIN: 0px; PADDING-LEFT: 47px; FONT-SIZE: 11pt"> <u>Purchase of Technical Data</u></p> <p style="MARGIN: 0px"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Technical data, including engineering reports, maps, assessment reports, exploration samples certificates, surveys, environmental studies and other miscellaneous information, may be purchased for our mining concessions. When purchased for concessions without proven reserves the cost is considered research and development pertaining to a developing mine and in accordance with the Research and Development R&amp;D Topic of the FASB ASC and is expensed when incurred.</p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px"><br /> </p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt"> <u>Recently Adopted and Recently Issued Accounting Guidance</u></p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px"><br /> </p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt"> <u>Adopted</u></p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In October 2009, the FASB issued changes to revenue recognition for multiple-deliverable arrangements. These changes require separation of consideration received in such arrangements by establishing a selling price hierarchy not the same as fair value for determining the selling price of a deliverable, which will be based on available information in the following order: vendor-specific objective evidence, third-party evidence, or estimated selling price; eliminate the residual method of allocation and require that the consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method, which allocates any discount in the arrangement to each deliverable on the basis of each deliverable&#39;s selling price; require that a vendor determine its best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis; and expand the disclosures related to multiple-deliverable revenue arrangements. These changes become effective on January&nbsp;1, 2011. The Company has determined that the adoption of these changes will not have an impact on its consolidated financial statements, as the Company does not currently have any such arrangements with its customers.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In January 2010, the FASB issued guidance to amend the disclosure requirements related to recurring and nonrecurring fair value measurements. The guidance requires a roll forward of activities on purchases, sales, issuances, and settlements of the assets and liabilities measured using significant unobservable inputs Level 3 fair value measurements. The guidance will become effective for the Company with the reporting period beginning July 1, 2011. The adoption of this guidance is not expected to have a material impact on the Company&#39;s condensed consolidated financial statements.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Other recent accounting pronouncements issued by the FASB including its Emerging Issues Task Force, the AICPA, and the SEC did not, or are not believed by management to, have a material impact on the Company&#39;s present or future consolidated financial statements.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><!--StartFragment--><a id="_Hlk256669960" name="_Hlk256669960"></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 3.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 110px; text-align: justify; TEXT-INDENT: -2px"> <strong>Other assets</strong></p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <a id="OLE_LINK4" name="OLE_LINK4"></a> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In September 2010, Tara Minerals signed an agreement to purchase three real estate properties for a price of $1,000,000. In order to hold these properties Tara Minerals made a cash deposit of $60,000. Tara Minerals is obligated to pay all the expenses, fees and general expenditures relating to the sale, which expenses, up to a maximum of $500,000, which are deductible from the sales price. &nbsp;In March 2011, Tara Minerals received notification from Pacemaker Silver Mining S.A. de C.V. a wholly-owned Mexican subsidiary of El Tigre, indicating that they also had surface rights related to being able to work claims they held mining rights too. Although this is does not effect our specific right to the tailing piles, there could be an issue as to who would have specific areas and specific times. &nbsp;&nbsp;Until the difference can be determined, the deposit was expensed as of March 31, 2011.</p> <!--EndFragment--></div> </div> 74029 157870 -35387 -4877 -281640 2930982 11091 1029 791086 3758 122405 104828 85000 6094 1267 37094 19590 25149 830171 42895 2588049 50000 818340 6748288 480000 150000 29394 29394 -1610418 -8703518 -23973148 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="_Hlk256669960" name="_Hlk256669960"><!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 2.</strong></p> <p style="TEXT-INDENT: -2px; MARGIN: 0px; PADDING-LEFT: 110px; FONT-SIZE: 11pt"> <strong>Property, plant, equipment, mine development and land</strong></p> <p style="MARGIN: 0px; CLEAR: left"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="315"></td> <td width="111"></td> <td></td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>March 31, 2011</strong></p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>December 31, 2010</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>Unaudited</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>Audited</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Land</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 93px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -84px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 19,590&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 109px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -100px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 100px"> 19,590&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Mining concessions:</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Pilar a</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 710,172&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 710,172&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Don Roman</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 521,739&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 521,739&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Las Nuvias</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 100,000&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 100,000&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Centenario b</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 635,571&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 1,946,545&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Pirita</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 246,455&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 246,455&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Picacho</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 1,250,000&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 1,250,000&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;La Palma c</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 79,974&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> -&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Mining concessions</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 3,543,911&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 4,774,911&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> Construction in Progress</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> -&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> -&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> Property, plant and equipment</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 3,444,749&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 3,603,210&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 7,008,250&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 8,397,711&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Less - accumulated depreciation</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 353,462</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 295,925</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="top" width="111"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 93px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -84px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 6,654,788&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="top"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 109px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -100px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 100px"> 8,101,786&nbsp;</p> </td> </tr> </table> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> Pilar, Don Ramon, Las Nuvias and Centenario properties are geographically located in Mexico and are known as the Don Roman Groupings.</p> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>a.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> In November 2008, the Company acquired eight mining concessions known as "Centenario" from an independent third party. The properties approximate 5,400 hectares and were purchased for $1,894,050, including $247,050 in value added taxes.</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> In June 2009, the Company and the note holder modified the agreement to 1 revalue the entire Centenario concession to $2,000,000, 2 apply $127,000 toward the purchase price which had already been paid and recorded as a mining deposit, and 3 apply $197,956 toward the new price of the concession which was originally paid by another subsidiary of the Company&#39;s Parent. &nbsp;These changes resulted in the following 1 additional debt of $28,044 plus related value added tax for these concessions, 2 the reduction of the amount of the mining deposit of $127,000, 3 the expense of $6,000 that AMM also paid but which was not included in the revaluation of the concession, and 4 the increase in Due to Related Party of $197,956 plus related value added tax. The effective amount financed in relation to this concession is $1,675,044 plus $251,257 of value added tax.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> In March 2011, AMM and the note holder agreed to reduce the purchase of the Centenario concession to $635,571. These changes resulted in the following: 1 decrease debt by $1,310,974; and 2 decrease recoverable value added taxes by $218,309. At March 31, 2011 the amended purchase price was paid in full. &nbsp;</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> In March 2011, the Company purchased technical data pertaining to Centenario from the former owner in consideration for 416,100 shares of the Company&#39;s common stock and $100,000 cash. The parties agreed that the value of the stock for the technical data was $2.00 per share for the Company&#39;s common stock. &nbsp;The Company has accounted for the shares at their fair market value as follows: &nbsp;416,100 shares of the Company&#39;s common stock were valued at $0.85. &nbsp;All fair market values were determined based on contemporaneous stock issuances for cash or if the stock was quoted on an exchange, it&#39;s closing stock price. All stock was issued April 2011.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>b.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> On March 2011, AMM executed an agreement to acquire six mining concessions known as La Palma from an independent third party. The properties approximate 2,104 hectares, and were purchased for a total of $92,800, including $12,800 in value added taxes. AMM paid $50,000 as a deposit for the concession mining deposit which was applied to the effective price of the property. &nbsp;The remaining balance of $42,800 is due thirty days after the execution date of the agreement. &nbsp;</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> In March 2011, the Company purchased technical data pertaining to the La Palma from the former owner for 460,000 shares of the Company&#39;s common stock. The parties agreed that the value of the stock for the technical data was $2.00 per share for the Company&#39;s common stock. &nbsp;The Company has accounted for the shares at their fair market value as follows: &nbsp;460,000 shares of the Company&#39;s common stock were valued at $0.85. &nbsp;All fair market values were determined based on contemporaneous stock issuances for cash or if the stock was quoted on an exchange, it&#39;s closing stock price. All stock was issued April 2011.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> <strong>Other Fixed Assets</strong></p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> For the three months ended March 31, 2011, Tara Minerals and its subsidiaries disposed of and sold equipment and other fixed assets, for a $4,260 loss on disposal and sale of assets.</p> <!--EndFragment--></div> </div> 6654788 8101786 -115366 37100 1255859 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 4.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 110px; text-align: justify; TEXT-INDENT: -2px"> <strong>Related Party Transactions</strong></p> <p style="MARGIN: 0px; CLEAR: left"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Due to related parties, net of due from was $3,237,827 and $3,465,232 as of March 31, 2011 and December 31, 2010, respectively.</p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> &nbsp;</p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> As of March 31, 2011, Tara Gold loaned the Company $1,588,257 which amount is included in Due to Related Parties. There are no terms to this related party payable and it is due on demand.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In September 2010, Tara Gold entered into a tentative agreement with Tara Minerals which provided that Tara Minerals will acquire all of the outstanding shares of Tara Gold by exchanging one Tara Mineral share for two Tara Gold shares. &nbsp;In 2011 this acquisition was cancelled. &nbsp;Tara Gold Resources Corp. will begin to distribute all of its shares in Tara Minerals to its shareholders at a rate of one Tara Minerals common share for every 20 outstanding shares of Tara Gold Resources Corp. &nbsp;The ex-dividend date is May 18, 2011, the record date is May 20, 2011 and the payment date is May 27, 2011. &nbsp;Additional distributions will be announced over the next 24 months until all Tara Minerals shares, held by Tara Gold, are distributed to Tara Gold shareholders.</p> <!--EndFragment--></div> </div> 61403 711452 1251866 201438 -23566405 -21962357 160421 219088 3562967 8154292 2915060 5371684 5731842 5551131 3181381 3494300 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 6.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 110px; text-align: justify; TEXT-INDENT: -2px"> <strong>Stockholders&#39; Equity</strong></p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The authorized common stock of the Company consists of 200,000,000 shares with par value of $0.001.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> March 2011, the Company issued 1,012,977 shares of common stock valued at $1,215,572 or $1.20 a share to convert loans from unrelated parties.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> March 2011, the Company issued 105,722 shares of common stock valued at $126,866 or $1.20 a share to convert a loan from a related party.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> March 2011, the Company issued 125,000 shares of common stock for warrants exercised, for $50,000 or $0.40 a share for cash.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> <u>Common Stock Subscribed</u></p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> At March 31, 2011, common stock payable consists of:</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 120px; WIDTH: 144px; FONT-FAMILY: Symbol; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> &middot;</p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 144px; text-align: justify; TEXT-INDENT: -2px"> 100,000 shares payable to an Officer of the Company, valued at $100,000, for payment of services on behalf of Tara Gold.</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 120px; WIDTH: 144px; FONT-FAMILY: Symbol; MARGIN-BOTTOM: -2px; FLOAT: left; CLEAR: left; FONT-SIZE: 11pt"> &middot;</p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 144px; text-align: justify; TEXT-INDENT: -2px"> 416,100 shares payable, valued at $353,685 for the purchase of Centenario&#39;s technical data. See Note 2 above.</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 120px; WIDTH: 144px; FONT-FAMILY: Symbol; MARGIN-BOTTOM: -2px; FLOAT: left; CLEAR: left; FONT-SIZE: 11pt"> &middot;</p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 144px; text-align: justify; TEXT-INDENT: -2px"> 460,000 shares payable, valued at $391,000 for the purchase of La Palma&#39;s technical data. See Note 2 above.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 10.</strong></p> <p style="TEXT-INDENT: -2px; MARGIN: 0px; PADDING-LEFT: 110px; FONT-SIZE: 11pt"> <strong>Subsequent Events</strong></p> <p style="MARGIN: 0px; CLEAR: left"><br /> </p> <p style="MARGIN: 0px; PADDING-LEFT: 72px; FONT-SIZE: 11pt"> Management evaluated all activity of the Company through May 14, 2011 the issue date of the Financial Statements and concluded the following disclosures are pertinent:</p> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>a.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> In April 2011, the Company and AMM signed a letter of intent with Springbok Development-Claridge-Hanlon Resource Engineering, "SD-CHRE" and/or Nominee or any of its subsidiaries to grant them an option to acquire up to an undivided forty-nine percent 49% interest in and to all of the mining concessions known as the Don Roman grouping located in the State of Sinaloa, Mexico. The Don Roman grouping now totals approximately 10,000 hectares in close proximity to the existing mill, which includes the Don Roman, Centenario, and the newly acquired La Verdes concessions. The grouping lies 15 km SW of the historically prolific La Reforma silver/zinc/lead district. Key personnel from SD-CHRE have worked on Mining, Commercial, Government and Infrastructure projects for over 20-years.</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The Letter of Intent is non-binding and requires SD-CHRE, as the mine and mill operator, to make a $250,000 cash payment to The Company within 45 days of the signing. To earn its 49% interest, SD-CHRE will incur a minimum of $2 million to start-up the existing mill and achieve a production rate of 120 tonnes per day within 120 days; incur another $2 million to achieve a production rate of 360 tonnes per day within 6 months; and incur an additional minimum $4 million to achieve and maintain a minimum production rate, as the parties may agree upon within the Definitive Agreement, not to be less than 480 tonnes per day, within twelve months.</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The net revenue generated from the project will be shared on a 50% SD-CHRE and 50% the Company basis. The LOI envisions an assessment and design period of 45-60 days and a Definitive Agreement within 90 days.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>b.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> In April 2011, the Company entered into an agreement to acquire 100% of the La Verdes gold, silver, zinc and lead project grouping. The 2,200 hectares property consists of eight concessions 13-18 km from the Don Roman mine and mill. The concessions were being mined as late as 2010, with the extracted material grading 0.5-1.5 g/t gold, 300-600 g/t silver, 14-15% zinc, 6-8% lead, and 2.1-2.6% copper. Recent channel samples across the workings assayed similar grades. A road from the groupings, to the Don Roman mill, has also been completed. The Company now controls over 10,000 hectares in close proximity to the mill.</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The Company is acquiring the grouping for $1.8 million plus applicable taxes. $1.66 million of the acquisition cost will be paid by the issuance of The Company restricted shares valued at $2 per share, with the remainder being paid in cash.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The La Verdes grouping comprises of an extensive area of hydrothermal alteration that hosts numerous precious and base metal occurrences along the western part of the Northern Sierra Madre Gold Belt. The property lies 30 km SW of the historically prolific La Reforma Pb-Zn-Ag District that is now the focus of concerted exploration by Pe&ntilde;oles. The grouping has 50 m of tunnels and 14 known showings of old workings. Numerous gold/silver/zinc/lead vein structures have been identified with three being well defined. These veins are approximately 1.5-8 meters wide and are comprised of 80% sulfides. The strike length of some of these structures have already been traced to a combined total of over 5 kilometers.</p> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>c.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> In May 2011, the Company reached an agreement for the right to mine the 3,233 hectare Tania Iron Ore property located in Manzanillo, State of Colima, Mexico. The Company has the right to remove 6 million tonnes of salable concentrate from the property, with perpetual renewal rights, extending through the life of the property. The Company will pay the vendor $6 per salable tonne for the first 500,000 tonnes removed from the property and $7 per tonne thereafter. A total of $100,000 will be advanced to the vendor against future royalty payments.</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The Company is also pleased to announce that it has raised $750,000 through a royalty rights offering to advance the project. A portion of the funds will be used to secure appropriate environmental permits, export permits, and recovery process engineering.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The Tania property is located 33 km from the port of Manzanillo. The Iron is contained within decomposed granite with little overburden. On the surface, the mineralized zone is estimated to be 2 km wide and approximately 1 km in length. The zone is continuous and sampled 30-40% Iron. The property has not been subjected to modern exploration methods or concentrating processes.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>d.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> In May 2011, the Company increased its authorized shares to 200,000,000. &nbsp;</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>e.</strong></p> <p style="TEXT-INDENT: -2px; MARGIN: 0px; PADDING-LEFT: 72px; FONT-SIZE: 11pt"> In May 2011, the Company sold 1,643,333 Units at a price of $0.30 per Unit.&nbsp; Each Unit consisted of one share of the Company&#39;s common stock and one warrant.&nbsp; Each warrant entitles the holder to purchase one share of the Company&#39;s common stock at a price of $1.00 per share during the one year period following the sale of the Units.&nbsp; All warrants expire May 2012.</p> <!--EndFragment--></div> </div> 139595 170494 xbrli:shares ISO4217:USD ISO4217:USD shares 0001387054 2011-05-16 0001387054 2011-03-31 0001387054 2011-01-01 2011-03-31 0001387054 2006-05-12 2011-03-31 0001387054 2010-12-31 0001387054 2010-03-31 0001387054 2010-01-01 2010-03-31 0001387054 2009-12-31 0001387054 2006-05-11 EX-101.SCH 13 tarm-20110331.xsd 001 - Document - Document And Entity Information link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 002 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 003 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 004 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 005 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 011 - Disclosure - Nature of Business and Significant Accounting Policies link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 012 - Disclosure - Property, plant, equipment, mine development and land link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 013 - Disclosure - Other assets link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 014 - Disclosure - Related Party Transactions link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 015 - Disclosure - Notes Payable link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 016 - Disclosure - Stockholders' Equity link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 017 - Disclosure - Stock Compensation link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 018 - Disclosure - Non-controlling Interest link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 019 - Disclosure - Fair Value link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 020 - Disclosure - Subsequent Events link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink EX-101.CAL 14 tarm-20110331_cal.xml EX-101.LAB 15 tarm-20110331_lab.xml Accounts Payable and Accrued Liabilities, Current Accounts payable and accrued expenses Accrued interest converted to common stock Accrued interest converted to common stock. 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Weighted average number of shares, basic and diluted EX-101.PRE 16 tarm-20110331_pre.xml XML 17 R11.xml IDEA: Stockholders' Equity 2.2.0.25falsefalse016 - Disclosure - Stockholders' Equitytruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $from-2011-01-01-to-2011-03-31.0.0http://www.sec.gov/CIK0001387054duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDISO42170sharesItemTypeStandardhttp://www.xbrl.org/2003/instancesharesxbrli0perShareItemTypeDividehttp://www.xbrl.org/2003/iso4217USDISO4217http://www.xbrl.org/2003/instanceshares0USDUSD$2true0us-gaap_EquityAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0us-gaap_StockholdersEquityNoteDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 6.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 110px; text-align: justify; TEXT-INDENT: -2px"> <strong>Stockholders&#39; Equity</strong></p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The authorized common stock of the Company consists of 200,000,000 shares with par value of $0.001.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> March 2011, the Company issued 1,012,977 shares of common stock valued at $1,215,572 or $1.20 a share to convert loans from unrelated parties.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> March 2011, the Company issued 105,722 shares of common stock valued at $126,866 or $1.20 a share to convert a loan from a related party.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> March 2011, the Company issued 125,000 shares of common stock for warrants exercised, for $50,000 or $0.40 a share for cash.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> <u>Common Stock Subscribed</u></p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> At March 31, 2011, common stock payable consists of:</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 120px; WIDTH: 144px; FONT-FAMILY: Symbol; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> &middot;</p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 144px; text-align: justify; TEXT-INDENT: -2px"> 100,000 shares payable to an Officer of the Company, valued at $100,000, for payment of services on behalf of Tara Gold.</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 120px; WIDTH: 144px; FONT-FAMILY: Symbol; MARGIN-BOTTOM: -2px; FLOAT: left; CLEAR: left; FONT-SIZE: 11pt"> &middot;</p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 144px; text-align: justify; TEXT-INDENT: -2px"> 416,100 shares payable, valued at $353,685 for the purchase of Centenario&#39;s technical data. See Note 2 above.</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 120px; WIDTH: 144px; FONT-FAMILY: Symbol; MARGIN-BOTTOM: -2px; FLOAT: left; CLEAR: left; FONT-SIZE: 11pt"> &middot;</p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 144px; text-align: justify; TEXT-INDENT: -2px"> 460,000 shares payable, valued at $391,000 for the purchase of La Palma&#39;s technical data. See Note 2 above.</p> <!--EndFragment--></div> </div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> NotefalsefalsefalsefalsefalseOthernonnum: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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This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 20: 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 21: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -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. 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TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 5.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 110px; text-align: justify; TEXT-INDENT: -2px"> <strong>Notes Payable</strong></p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The following table represents the outstanding balance of loans and capital leases for the Company as of March 31, 2011 and December 31, 2010.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="273"></td> <td width="111"></td> <td width="132"></td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="273"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>March 31, 2011</strong></p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="132"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>December 31, 2010</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="273"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>Unaudited</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="132"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>Audited</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="273"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="132"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="273"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Mining concession</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 93px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -84px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 205,229&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="132"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 109px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -100px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 100px"> 1,699,737&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="273"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Auto loans</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 86,337&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="132"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 119,766&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="273"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> Equipment</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> -&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="132"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 72,848&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="273"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 291,566&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="132"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 1,892,351&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="273"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Less - current portion</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 231,161</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="132"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 824,001</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="273"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Total - non-current portion</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 93px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -84px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 60,405&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="132"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 109px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -100px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 100px"> 1,068,350&nbsp;</p> </td> </tr> </table> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> During the three months ended March 31, 2011, one of the vehicles purchased in 2010 was stolen, the insurance claim was processed and the note payable and the fixed asset removed from the AMM&#39;s books. &nbsp;</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> During the three months ended March 31, 2011, AMM defaulted on an equipment capital lease entered into on July 21, 2010, the equipment was returned and removed from the books and treated as an operating lease.</p> <!--EndFragment--></div> </div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> Note 5. NotesfalsefalsefalsefalsefalseOthernonnum:textBlockItemTypenaThe entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.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 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -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 SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 falsefalse12Notes PayableUnKnownUnKnownUnKnownUnKnownfalsetrue XML 19 R8.xml IDEA: Other assets 2.2.0.25falsefalse013 - Disclosure - Other assetstruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $from-2011-01-01-to-2011-03-31.0.0http://www.sec.gov/CIK0001387054duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDISO42170sharesItemTypeStandardhttp://www.xbrl.org/2003/instancesharesxbrli0perShareItemTypeDividehttp://www.xbrl.org/2003/iso4217USDISO4217http://www.xbrl.org/2003/instanceshares0USDUSD$2true0us-gaap_OtherAssetsAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0us-gaap_OtherAssetsDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><!--StartFragment--><a id="_Hlk256669960" name="_Hlk256669960"></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 3.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 110px; text-align: justify; TEXT-INDENT: -2px"> <strong>Other assets</strong></p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <a id="OLE_LINK4" name="OLE_LINK4"></a> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In September 2010, Tara Minerals signed an agreement to purchase three real estate properties for a price of $1,000,000. In order to hold these properties Tara Minerals made a cash deposit of $60,000. Tara Minerals is obligated to pay all the expenses, fees and general expenditures relating to the sale, which expenses, up to a maximum of $500,000, which are deductible from the sales price. &nbsp;In March 2011, Tara Minerals received notification from Pacemaker Silver Mining S.A. de C.V. a wholly-owned Mexican subsidiary of El Tigre, indicating that they also had surface rights related to being able to work claims they held mining rights too. Although this is does not effect our specific right to the tailing piles, there could be an issue as to who would have specific areas and specific times. &nbsp;&nbsp;Until the difference can be determined, the deposit was expensed as of March 31, 2011.</p> <!--EndFragment--></div> </div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> Note 3. OtherfalsefalsefalsefalsefalseOthernonnum:textBlockItemTypenaThe entire disclosure for other assets.No authoritative reference available.falsefalse12Other assetsUnKnownUnKnownUnKnownUnKnownfalsetrue XML 20 R12.xml IDEA: Stock Compensation 2.2.0.25falsefalse017 - Disclosure - Stock Compensationtruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $from-2011-01-01-to-2011-03-31.0.0http://www.sec.gov/CIK0001387054duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDISO42170sharesItemTypeStandardhttp://www.xbrl.org/2003/instancesharesxbrli0perShareItemTypeDividehttp://www.xbrl.org/2003/iso4217USDISO4217http://www.xbrl.org/2003/instanceshares0USDUSD$2true0us-gaap_ShareBasedCompensationAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 7.</strong></p> <p style="TEXT-INDENT: -2px; MARGIN: 0px; PADDING-LEFT: 110px; FONT-SIZE: 11pt"> <strong>Stock Compensation</strong></p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In January 2010, the Company granted two of its officer&#39;s options under its Incentive Stock Option Plan for the purchase of 750,000 shares of common stock. The options are exercisable at a price of $1.57 per share and vest at various dates until January 2017. The options expire at various dates beginning January 2015. &nbsp;As of March 31, 2011 options that vested in 2011 were valued at $182,735.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In September 2010, the Company granted options for 200,000 shares of common stock to an unrelated third party for investor relations services. The options have an exercise price of $1.00 per share, vest between September 2010 and March 2011 and expire two years from the date of vesting. As of March 31, 2011 options that vested in 2011 were valued at $36,353.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> No options or warrants were issued in the first quarter 2011.</p> <p style="MARGIN: 0px"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The fair value of each option award discussed above is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on volatilities from the Company&#39;s traded common stock. The expected term of options granted is estimated at half of the contractual term as noted in the individual option agreements and represents the period of time that management anticipates option granted are expected to be outstanding. &nbsp;The risk-free rate for the periods within the contractual life of the option is based on the U.S. Treasury bond rate in effect at the time of grant for bonds with maturity dates at the estimated term of the options.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <div style="text-align: right"> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0"> <tr style="FONT-SIZE: 0px"> <td width="510"></td> <td width="169"></td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong><u>2010</u></strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong><u>date of grant</u></strong></p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Expected volatility</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">208.37% - 319.79%</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Weighted-average volatility</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> 159.17%</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Expected dividends</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">0</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Expected term in years</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">0.75 - 4.50</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="510"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Risk-free rate</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="169"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">0.30% - 2.37%</p> </td> </tr> </table> </div> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt">A summary of option activity under the Plan as of March 31, 2011 and changes during the period then ended is presented below:</p> <p style="MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="238"></td> <td width="108"></td> <td width="102"></td> <td width="102"></td> <td width="80"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="238"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Options</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="108"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Shares</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="102"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Weighted-</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Average</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Exercise</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Price</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="102"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Weighted-</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Average</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Remaining</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Contractual</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>&nbsp;Term</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="80"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Aggregate</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Intrinsic</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>&nbsp;Value</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Outstanding at December 31, 2010</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 4,630,000</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 78px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -69px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 69px"> 0.05</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Granted</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> -</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 78px"> -</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Exercised</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> -</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 78px"> -</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Forfeited or expired</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 78px"> -</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Outstanding at March 31, 2011</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 4,630,000</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 78px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -69px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 69px"> 0.05</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">3.5</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">$2,025,000</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="238"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Exercisable at March 31, 2011</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="108"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 3,330,000</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 78px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -69px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 69px"> 0.46</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="102"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">3.5</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="80"> <p style="MARGIN-TOP: 0px; WIDTH: 69px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -69px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 69px"> 2,025,000</p> </td> </tr> </table> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"><br /> &nbsp;</p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="392"></td> <td width="126"></td> <td width="105"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="392"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Nonvested Options</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="126"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Options</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="105"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Weighted</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>-Average</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Grant-Date</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>&nbsp;Fair Value</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="392"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Nonvested at December 31, 2010</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="126"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 116px"> 1,475,000&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="105"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 97px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -88px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> 1.37</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="392"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Granted</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="126"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 116px"> -&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="105"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 97px"> -</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="392"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Vested</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="126"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 116px"> 175,000</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="105"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 97px"> 1.22</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="392"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Forfeited</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="126"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 116px"> -&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="105"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 97px"> -</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="392"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Nonvested at March 31, 2011</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="126"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 116px"> 1,300,000&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="105"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 94px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -85px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 85px"> 0.86</p> </td> </tr> </table> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt">A summary of warrant activity under the Plan as of March 31, 2011, and changes during the period then ended is presented below:</p> <p style="MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="241"></td> <td width="106"></td> <td width="103"></td> <td width="100"></td> <td width="79"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="241"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Warrants</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="106"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Shares</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="103"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Weighted-</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Average</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Exercise</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Price</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="100"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Weighted-</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Average</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Remaining</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Contractual</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Term</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px; BORDER-TOP: #000000 3px double" valign="bottom" width="79"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Aggregate</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Intrinsic</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Value</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Outstanding at December 31, 2010</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> 4,271,999</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 80px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -70px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 70px"> 0.65</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Granted</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> -&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 80px"> -</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Exercised</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> 125,000</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 80px"> 0.40</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Forfeited, cancelled or expired</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> -&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 80px"> -</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Outstanding at &nbsp;March 31, 2011</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> 4,146,999&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 80px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -70px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 70px"> 0.85</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">1.5</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">$ &nbsp;580,590</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="241"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Exercisable at March 31, 2011</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="106"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 88px"> 4,146,999&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 80px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -70px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 70px"> 0.85</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="100"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center">1.5</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="bottom" width="79"> <p style="MARGIN-TOP: 0px; WIDTH: 65px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -65px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 65px"> 580,590</p> </td> </tr> </table> <p style="MARGIN: 0px"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> All warrants at March 31, 2011 were vested.</p> <!--EndFragment--></div> </div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> Note 7. StockfalsefalsefalsefalsefalseOthernonnum:textBlockItemTypenaThe entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 3: 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 falsefalse210CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)NoRoundingNoRoundingNoRoundingUnKnownfalsetrue XML 22 R14.xml IDEA: Fair Value 2.2.0.25falsefalse019 - Disclosure - Fair Valuetruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $from-2011-01-01-to-2011-03-31.0.0http://www.sec.gov/CIK0001387054duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDISO42170sharesItemTypeStandardhttp://www.xbrl.org/2003/instancesharesxbrli0perShareItemTypeDividehttp://www.xbrl.org/2003/iso4217USDISO4217http://www.xbrl.org/2003/instanceshares0USDUSD$2true0us-gaap_FairValueDisclosuresAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0us-gaap_FairValueDisclosuresTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 9.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 110px; text-align: justify; TEXT-INDENT: -2px"> <strong>Fair Value</strong></p> <p style="MARGIN: 0px; CLEAR: left"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In accordance with authoritative guidance, the table below sets forth the Company&#39;s financial assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="237"></td> <td width="110"></td> <td width="95"></td> <td width="89"></td> <td width="82"></td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="378" colspan="4"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Fair Value at March 31, 2011</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Total</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 1</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 2</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 3</strong></p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Assets:</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">None</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Liabilities:</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Total notes payable</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> 291,566</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> 291,566</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Due to related parties, net of due from</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 86px"> 3,237,827</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="95"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 81px"> 3,237,827</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="89"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 58px"> -</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 58px"> -</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Total</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> 3,529,393</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="95"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> 3,529,393</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="89"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> </table> <p style="MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="237"></td> <td width="110"></td> <td width="103"></td> <td width="82"></td> <td width="82"></td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="378" colspan="4"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Fair Value at December 31, 2010</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Total</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 1</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 2</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Level 3</strong></p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Assets:</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">None</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Liabilities:</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Total notes payable, including related &nbsp;&nbsp;party</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> 1,992,351</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> 1,992,351</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Due to related parties, net of due from</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="110"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 86px"> 3,465,232</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="103"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 81px"> 3,465,232</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 58px"> -</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 58px"> -</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="237"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Total</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="110"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 86px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -77px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 77px"> 5,457,583</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="103"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8px; WIDTH: 81px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -73px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 73px"> 5,457,583</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px; BORDER-TOP: #000000 1px solid" valign="bottom" width="82"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 58px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -49px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 49px"> -</p> </td> </tr> </table> <p style="MARGIN: 0px"><br /> </p> <!--EndFragment--></div> </div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> Note 9. FairfalsefalsefalsefalsefalseOthernonnum:textBlockItemTypenaThe entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 -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 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D -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 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13504-108611 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d -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 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B -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 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 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 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b -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 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 -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. falsefalse12Fair ValueUnKnownUnKnownUnKnownUnKnownfalsetrue XML 23 R15.xml IDEA: Subsequent Events 2.2.0.25falsefalse020 - Disclosure - Subsequent Eventstruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $from-2011-01-01-to-2011-03-31.0.0http://www.sec.gov/CIK0001387054duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDISO42170sharesItemTypeStandardhttp://www.xbrl.org/2003/instancesharesxbrli0perShareItemTypeDividehttp://www.xbrl.org/2003/iso4217USDISO4217http://www.xbrl.org/2003/instanceshares0USDUSD$2true0us-gaap_SubsequentEventsAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0us-gaap_SubsequentEventsTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><a id="OLE_LINK4" name="OLE_LINK4"> <!--StartFragment--></a> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 10.</strong></p> <p style="TEXT-INDENT: -2px; MARGIN: 0px; PADDING-LEFT: 110px; FONT-SIZE: 11pt"> <strong>Subsequent Events</strong></p> <p style="MARGIN: 0px; CLEAR: left"><br /> </p> <p style="MARGIN: 0px; PADDING-LEFT: 72px; FONT-SIZE: 11pt"> Management evaluated all activity of the Company through May 14, 2011 the issue date of the Financial Statements and concluded the following disclosures are pertinent:</p> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>a.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> In April 2011, the Company and AMM signed a letter of intent with Springbok Development-Claridge-Hanlon Resource Engineering, "SD-CHRE" and/or Nominee or any of its subsidiaries to grant them an option to acquire up to an undivided forty-nine percent 49% interest in and to all of the mining concessions known as the Don Roman grouping located in the State of Sinaloa, Mexico. The Don Roman grouping now totals approximately 10,000 hectares in close proximity to the existing mill, which includes the Don Roman, Centenario, and the newly acquired La Verdes concessions. The grouping lies 15 km SW of the historically prolific La Reforma silver/zinc/lead district. Key personnel from SD-CHRE have worked on Mining, Commercial, Government and Infrastructure projects for over 20-years.</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The Letter of Intent is non-binding and requires SD-CHRE, as the mine and mill operator, to make a $250,000 cash payment to The Company within 45 days of the signing. To earn its 49% interest, SD-CHRE will incur a minimum of $2 million to start-up the existing mill and achieve a production rate of 120 tonnes per day within 120 days; incur another $2 million to achieve a production rate of 360 tonnes per day within 6 months; and incur an additional minimum $4 million to achieve and maintain a minimum production rate, as the parties may agree upon within the Definitive Agreement, not to be less than 480 tonnes per day, within twelve months.</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The net revenue generated from the project will be shared on a 50% SD-CHRE and 50% the Company basis. The LOI envisions an assessment and design period of 45-60 days and a Definitive Agreement within 90 days.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>b.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> In April 2011, the Company entered into an agreement to acquire 100% of the La Verdes gold, silver, zinc and lead project grouping. The 2,200 hectares property consists of eight concessions 13-18 km from the Don Roman mine and mill. The concessions were being mined as late as 2010, with the extracted material grading 0.5-1.5 g/t gold, 300-600 g/t silver, 14-15% zinc, 6-8% lead, and 2.1-2.6% copper. Recent channel samples across the workings assayed similar grades. A road from the groupings, to the Don Roman mill, has also been completed. The Company now controls over 10,000 hectares in close proximity to the mill.</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The Company is acquiring the grouping for $1.8 million plus applicable taxes. $1.66 million of the acquisition cost will be paid by the issuance of The Company restricted shares valued at $2 per share, with the remainder being paid in cash.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The La Verdes grouping comprises of an extensive area of hydrothermal alteration that hosts numerous precious and base metal occurrences along the western part of the Northern Sierra Madre Gold Belt. The property lies 30 km SW of the historically prolific La Reforma Pb-Zn-Ag District that is now the focus of concerted exploration by Pe&ntilde;oles. The grouping has 50 m of tunnels and 14 known showings of old workings. Numerous gold/silver/zinc/lead vein structures have been identified with three being well defined. These veins are approximately 1.5-8 meters wide and are comprised of 80% sulfides. The strike length of some of these structures have already been traced to a combined total of over 5 kilometers.</p> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>c.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> In May 2011, the Company reached an agreement for the right to mine the 3,233 hectare Tania Iron Ore property located in Manzanillo, State of Colima, Mexico. The Company has the right to remove 6 million tonnes of salable concentrate from the property, with perpetual renewal rights, extending through the life of the property. The Company will pay the vendor $6 per salable tonne for the first 500,000 tonnes removed from the property and $7 per tonne thereafter. A total of $100,000 will be advanced to the vendor against future royalty payments.</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The Company is also pleased to announce that it has raised $750,000 through a royalty rights offering to advance the project. A portion of the funds will be used to secure appropriate environmental permits, export permits, and recovery process engineering.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> The Tania property is located 33 km from the port of Manzanillo. The Iron is contained within decomposed granite with little overburden. On the surface, the mineralized zone is estimated to be 2 km wide and approximately 1 km in length. The zone is continuous and sampled 30-40% Iron. The property has not been subjected to modern exploration methods or concentrating processes.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>d.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> In May 2011, the Company increased its authorized shares to 200,000,000. &nbsp;</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>e.</strong></p> <p style="TEXT-INDENT: -2px; MARGIN: 0px; PADDING-LEFT: 72px; FONT-SIZE: 11pt"> In May 2011, the Company sold 1,643,333 Units at a price of $0.30 per Unit.&nbsp; Each Unit consisted of one share of the Company&#39;s common stock and one warrant.&nbsp; Each warrant entitles the holder to purchase one share of the Company&#39;s common stock at a price of $1.00 per share during the one year period following the sale of the Units.&nbsp; All warrants expire May 2012.</p> <!--EndFragment--></div> </div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> Note 10. SubsequentfalsefalsefalsefalsefalseOthernonnum:textBlockItemTypenaThe entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.No authoritative reference available.falsefalse12Subsequent EventsUnKnownUnKnownUnKnownUnKnownfalsetrue XML 24 R4.xml IDEA: CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS 2.2.0.25falsefalse004 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSStruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $from-2011-01-01-to-2011-03-31.0.0http://www.sec.gov/CIK0001387054duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDISO42170sharesItemTypeStandardhttp://www.xbrl.org/2003/instancesharesxbrli0perShareItemTypeDividehttp://www.xbrl.org/2003/iso4217USDISO4217http://www.xbrl.org/2003/instanceshares0USDUSD$2falsefalseUSDfalsefalse1/1/2010 - 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There are no terms to this related party payable and it is due on demand.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In September 2010, Tara Gold entered into a tentative agreement with Tara Minerals which provided that Tara Minerals will acquire all of the outstanding shares of Tara Gold by exchanging one Tara Mineral share for two Tara Gold shares. &nbsp;In 2011 this acquisition was cancelled. &nbsp;Tara Gold Resources Corp. will begin to distribute all of its shares in Tara Minerals to its shareholders at a rate of one Tara Minerals common share for every 20 outstanding shares of Tara Gold Resources Corp. &nbsp;The ex-dividend date is May 18, 2011, the record date is May 20, 2011 and the payment date is May 27, 2011. &nbsp;Additional distributions will be announced over the next 24 months until all Tara Minerals shares, held by Tara Gold, are distributed to Tara Gold shareholders.</p> <!--EndFragment--></div> </div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> Note 4. Related PartyfalsefalsefalsefalsefalseOthernonnum:textBlockItemTypenaThe entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.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.(k)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 3A -Section 04 -Paragraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 1-4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 4 -Section 08 -Paragraph k Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864 falsefalse12Related Party TransactionsUnKnownUnKnownUnKnownUnKnownfalsetrue XML 26 R6.xml IDEA: Nature of Business and Significant Accounting Policies 2.2.0.25falsefalse011 - Disclosure - Nature of Business and Significant Accounting Policiestruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $from-2011-01-01-to-2011-03-31.0.0http://www.sec.gov/CIK0001387054duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDISO42170sharesItemTypeStandardhttp://www.xbrl.org/2003/instancesharesxbrli0perShareItemTypeDividehttp://www.xbrl.org/2003/iso4217USDISO4217http://www.xbrl.org/2003/instanceshares0USDUSD$2true0us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0us-gaap_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div style="WIDTH: 720px"><!--StartFragment--> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 12px; WIDTH: 74px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 1.</strong></p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: -2px; PADDING-LEFT: 74px; MARGIN-BOTTOM: 4px; FONT-SIZE: 11pt"> <strong>Nature of Business and Significant Accounting Policies</strong></p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: -2px; PADDING-LEFT: 74px; MARGIN-BOTTOM: 4px; FONT-SIZE: 11pt"> &nbsp;</p> <p style="CLEAR: left; FONT-SIZE: 11pt; MARGIN: 0px; text-align: justify; TEXT-INDENT: 48px"> <u>Nature of business and principles of consolidation:</u></p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The accompanying Condensed Consolidated Financial Statements of Tara Minerals Corp. the "Company" should be read in conjunction with the Company&#39;s Annual Report on Form 10-K for the year ended December 31, 2010. Significant accounting policies disclosed therein have not changed, except as noted below.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The Company was organized May 12, 2006 under the laws of the State of Nevada. The Company currently is engaged in the acquisition, exploration and development of mineral resource properties in the United States of America and Mexico. &nbsp;The Company owns 99.9% of the common stock of American Metal Mining, S.A. de C.V. "AMM", which was established in December 2006 and operates in M&eacute;xico. The Company also owns 87% of the common stock of Adit Resources Corp., which in turns owns 99.9% of American Copper Mining, S.A. de C.V. "ACM", which was established in December 2006 and operates in M&eacute;xico. &nbsp;Adit Resources Corp. "Adit" was organized in June 2009 and ACM was purchased in June 2009. &nbsp;The Company currently has limited operations and, in accordance with the Financial Accounting Standards Board Accounting Standards Codification "FASB ASC" Development Stage Entities Topic, is considered an Exploration Stage Company.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Tara Minerals Corp. is a subsidiary of Tara Gold Resources Corp. "Tara Gold" or the "Company&#39;s Parent, a publicly traded company which trades under the TRGD symbol.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Unless otherwise indicated, all references to the Company include the operations of its subsidiaries, and all references to Adit include the operation of its subsidiary.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The accompanying Condensed Consolidated Financial Statements and the related footnote information are unaudited. &nbsp;In the opinion of management, they include all normal recurring adjustments necessary for a fair presentation of the condensed consolidated balance sheets of the Company at March 31, 2011 and December 31, 2010, and the condensed consolidated statements of operations for the three months ended March 31, 2011 and 2010. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. The consolidated financial statements include the financial statements of the Company, AMM, Adit and ACM. All amounts are in U.S. dollars unless otherwise indicated. All significant intercompany balances and transactions have been eliminated in consolidation.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The reporting currency of the Company and Adit is the U.S. dollar. The functional currency of AMM and ACM is the Mexican peso. As a result, the financial statements of the subsidiaries have been re-measured from Mexican pesos into U.S. dollars using i current exchange rates for monetary asset and liability accounts, ii historical exchange rates for nonmonetary asset and liability accounts, iii historical exchange rates for revenues and expenses associated with nonmonetary assets and liabilities and iv the weighted average exchange rate of the reporting period for all other revenues and expenses. In addition, foreign currency transaction gains and losses resulting from U.S. dollar denominated transactions are eliminated. The resulting re-measurement gain or loss is recorded as other comprehensive loss.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The financial statements of the Mexican subsidiaries should not be construed as representations that Mexican pesos have been, could have been or may in the future be converted into U.S. dollars at such rates or any other rates.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Relevant exchange rates used in the preparation of the financial statements for the subsidiary are as follows for the three months ended March 31, 2011. &nbsp;Mexican pesos per one U.S. dollar. &nbsp;</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <div style="text-align: right"> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0"> <tr style="FONT-SIZE: 0px"> <td width="514"></td> <td width="54"></td> <td width="91"></td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="514"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="145" colspan="2"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <u>March 31, 2011</u></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="514"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Current exchange rate</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="54"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Ps. &nbsp;&nbsp;&nbsp;&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="91"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 80px"> 11.9219</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="514"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Weighted average exchange rate for the nine months ended &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="54"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Ps. &nbsp;&nbsp;&nbsp;&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="91"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 80px"> 12.0782</p> </td> </tr> </table> </div> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px"><br /> </p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt"> <u>The Company&#39;s significant accounting policies are:</u></p> <p style="MARGIN: 0px"><br /> </p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt"> <u>Estimates</u></p> <p style="MARGIN: 0px"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Actual results could differ from those estimates.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt"> <u>Recoverable Value-Added Taxes IVA and Allowance for Doubtful Accounts</u></p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Each period receivables are reviewed for collectability. &nbsp;When a receivable is determined to not be collectable we allow for the receivable until we are either assured of collection or assured that a write off is necessary. &nbsp;We have recorded an allowance of $1,252,689 and $1,366,533 as of March 31, 2011 and December 31, 2010, respectively, in association with our receivable from IVA from our Mexico subsidiaries as we have determined that the Mexican government may not allow the complete refund of these taxes.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="MARGIN: 0px; PADDING-LEFT: 47px; FONT-SIZE: 11pt"> <u>Reclassifications</u></p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: justify"> <br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Certain reclassifications, which have no effect on net loss, have been made in the prior period financial statements to conform to the current presentation. &nbsp;</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <a id="_Hlk256669960" name="_Hlk256669960"></a> <p style="MARGIN: 0px; PADDING-LEFT: 47px; FONT-SIZE: 11pt"> <u>Purchase of Technical Data</u></p> <p style="MARGIN: 0px"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Technical data, including engineering reports, maps, assessment reports, exploration samples certificates, surveys, environmental studies and other miscellaneous information, may be purchased for our mining concessions. When purchased for concessions without proven reserves the cost is considered research and development pertaining to a developing mine and in accordance with the Research and Development R&amp;D Topic of the FASB ASC and is expensed when incurred.</p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px"><br /> </p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt"> <u>Recently Adopted and Recently Issued Accounting Guidance</u></p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px"><br /> </p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt"> <u>Adopted</u></p> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In October 2009, the FASB issued changes to revenue recognition for multiple-deliverable arrangements. These changes require separation of consideration received in such arrangements by establishing a selling price hierarchy not the same as fair value for determining the selling price of a deliverable, which will be based on available information in the following order: vendor-specific objective evidence, third-party evidence, or estimated selling price; eliminate the residual method of allocation and require that the consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method, which allocates any discount in the arrangement to each deliverable on the basis of each deliverable&#39;s selling price; require that a vendor determine its best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis; and expand the disclosures related to multiple-deliverable revenue arrangements. These changes become effective on January&nbsp;1, 2011. The Company has determined that the adoption of these changes will not have an impact on its consolidated financial statements, as the Company does not currently have any such arrangements with its customers.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In January 2010, the FASB issued guidance to amend the disclosure requirements related to recurring and nonrecurring fair value measurements. The guidance requires a roll forward of activities on purchases, sales, issuances, and settlements of the assets and liabilities measured using significant unobservable inputs Level 3 fair value measurements. The guidance will become effective for the Company with the reporting period beginning July 1, 2011. The adoption of this guidance is not expected to have a material impact on the Company&#39;s condensed consolidated financial statements.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Other recent accounting pronouncements issued by the FASB including its Emerging Issues Task Force, the AICPA, and the SEC did not, or are not believed by management to, have a material impact on the Company&#39;s present or future consolidated financial statements.</p> <!--EndFragment--></div> </div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> Note 1. 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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. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 falsefalse27false0us-gaap_NetCashProvidedByUsedInOperatingActivitiesus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse-7863552-7863552falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 24 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3521-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3536-108585 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 truefalse28true0us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse29false0us-gaap_PaymentsToAcquireLandus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegatedlabel1truefalsefalse-19590-19590falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash outflow from the acquisition of real estate intended to generate income for the owner; excludes land acquired for use by the owner.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -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 230 -SubTopic 10 -Section 45 -Paragraph 13 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3213-108585 falsefalse30false0us-gaap_PaymentsToAcquireMiningAssetsus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegatedlabel1truefalsefalse-830171-830171falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash outflow from the purchase of mining and mining related assets during the period.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph c -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 230 -SubTopic 10 -Section 45 -Paragraph 13 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3213-108585 falsefalse31false0us-gaap_PaymentsForDepositsus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegatedlabel1truefalsefalse-37094-37094falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe amount of cash paid for deposits on goods and services during the period; excludes time deposits and deposits with other institutions, which pertain to financial service entities.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 27 -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 230 -SubTopic 10 -Section 45 -Paragraph 25 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3536-108585 falsefalse32false0us-gaap_PaymentsToAcquirePropertyPlantAndEquipmentus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegatedlabel1truefalsefalse-2588049-2588049falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 13 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3213-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Investing Activities -URI http://asc.fasb.org/extlink&oid=6516133 falsefalse33false0us-gaap_CashAcquiredFromAcquisitionus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse20372037falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash inflow associated with the acquisition of business during the period (for example, cash that was held by the acquired business).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16, 17 -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 -Glossary Investing Activities -URI http://asc.fasb.org/extlink&oid=6516133 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3179-108585 falsefalse34false0us-gaap_OtherPaymentsToAcquireBusinessesus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegatedlabel1truefalsefalse-3758-3758falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash outflow associated with other payments to acquire businesses including deposit on pending acquisitions and preacquisition costs.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 17 -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 -Glossary Investing Activities -URI http://asc.fasb.org/extlink&oid=6516133 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 13 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3213-108585 falsefalse36false0us-gaap_ProceedsFromSaleOfProductiveAssetsus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse2939429394falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash inflow from the sale of property, plant and equipment (capital expenditures), software, and other intangible assets.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3179-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Investing Activities -URI http://asc.fasb.org/extlink&oid=6516133 falsefalse37false0us-gaap_NetCashProvidedByUsedInInvestingActivitiesus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse-3447231-3447231falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe net cash inflow or outflow from investing activity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 -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 230 -SubTopic 10 -Section 45 -Paragraph 24 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3521-108585 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3574-108585 truefalse38true0us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse39false0us-gaap_ProceedsFromIssuanceOfCommonStockus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse67482886748288falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash inflow from the additional capital contribution to the entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 14 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3255-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 -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 Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -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 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228 falsefalse40false0us-gaap_ProceedsFromRelatedPartyDebtus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse150000150000falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash inflow from a long-term borrowing made from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth. Alternate caption: Proceeds from Advances from Affiliates.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 14 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3255-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 -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 Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph b -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 -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228 falsefalse41false0us-gaap_ProceedsFromNotesPayableus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse480000480000falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash inflow from a borrowing supported by a written promise to pay an obligation.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 14 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3255-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 -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 Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph b -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 -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228 falsefalse42false0us-gaap_RepaymentsOfNotesPayableus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegatedlabel1truefalsefalse-1251866-1251866falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash outflow for a borrowing supported by a written promise to pay an obligation.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 15 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3291-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 -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 Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph b -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 -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228 falsefalse43false0us-gaap_RepaymentsOfOtherDebtus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegatedlabel1truefalsefalse-201438-201438falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash outflow for the payment of other borrowing not otherwise defined in the taxonomy.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 15 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3291-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 -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 Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph b -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 -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228 falsefalse44false0us-gaap_IncreaseDecreaseInDueToRelatedPartiesus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse34221043422104falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe increase (decrease) during the reporting period in the aggregate amount of obligations to be paid to the following types of related parties: a parent company and its subsidiaries; subsidiaries of a common parent; an entity and trust for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of the entities' management; an entity and its principal owners, management, or member of their immediate families; affiliates; or other parties with the ability to exert significant influence.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 -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 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 falsefalse46false0tarm_NoncontrollingInterestCashFromSaleOfSaleOfCommonStockOfSubsidiariestarmfalsedebitdurationNoncontrolling Interest Cash From Sale Of Sale Of Common Stock Of Subsidiaries.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse23686452368645falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryNoncontrolling Interest Cash From Sale Of Sale Of Common Stock Of Subsidiaries.No authoritative reference available.falsefalse47false0us-gaap_NetCashProvidedByUsedInFinancingActivitiesus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse1171573311715733falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe net cash inflow or outflow from financing activity for the period.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 -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 230 -SubTopic 10 -Section 45 -Paragraph 24 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3521-108585 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3574-108585 truefalse48false0us-gaap_EffectOfExchangeRateOnCashAndCashEquivalentsus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse-281640-281640falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe effect of exchange rate changes on cash balances held in foreign currencies.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 25 -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 830 -SubTopic 230 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6450594&loc=d3e33268-110906 falsefalse49false0us-gaap_CashAndCashEquivalentsPeriodIncreaseDecreaseus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse123310123310falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe increase (decrease) during the reporting period in cash and cash equivalents. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 -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 230 -SubTopic 10 -Section 45 -Paragraph 24 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3521-108585 falsefalse50false0us-gaap_CashAndCashEquivalentsAtCarryingValueus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsetruefalsefalseperiodstartlabel1falsefalsefalse00&nbsp;falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryIncludes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation).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 210.5-02.1) -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 1 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Footnote 1 -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 230 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3044-108585 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 -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 210 -SubTopic 10 -Section 45 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6361293&loc=d3e6676-107765 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Cash -URI http://asc.fasb.org/extlink&oid=6506951 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 -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 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Cash Equivalents -URI http://asc.fasb.org/extlink&oid=6507016 falsefalse51false0us-gaap_CashAndCashEquivalentsAtCarryingValueus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsetruefalseperiodendlabel1truefalsefalse123310123310falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryIncludes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation).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 210.5-02.1) -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 1 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Footnote 1 -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 230 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3044-108585 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 -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 210 -SubTopic 10 -Section 45 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6361293&loc=d3e6676-107765 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Cash -URI http://asc.fasb.org/extlink&oid=6506951 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 -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 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Cash Equivalents -URI http://asc.fasb.org/extlink&oid=6507016 falsefalse52true0us-gaap_SupplementalCashFlowInformationAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse53false0us-gaap_InterestPaidus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse182451182451falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe amount of cash paid for interest during the period.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 -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 230 -SubTopic 10 -Section 45 -Paragraph 25 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3536-108585 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4297-108586 falsefalse54false0us-gaap_IncomeTaxesPaidus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00&nbsp;&nbsp;falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 25 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3536-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 -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 Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 27 -Subparagraph f -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 230 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4297-108586 falsefalse55true0us-gaap_NoncashInvestingAndFinancingItemsAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse56false0tarm_PurchaseOfMiningConcessionPaidByDebtToRelatedPartytarmfalsecreditdurationPurchase of mining concession paid by debt to related party plus capitalized interest (negative movement due to note...falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse12816551281655falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryPurchase of mining concession paid by debt to related party plus capitalized interest (negative movement due to note modification).No authoritative reference available.falsefalse57false0tarm_PurchaseOfOrReductionInPurchaseOfConcessionPaidWithNotesPayabletarmfalsecreditdurationPurchase of or (reduction) in purchase of concession paid with notes payable plus capitalized interest.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse986771986771falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryPurchase of or (reduction) in purchase of concession paid with notes payable plus capitalized interest.No authoritative reference available.falsefalse58false0tarm_RecoverableValueAddedTaxesIncurredThroughAdditionalDebtAndDueToRelatedPartyNetOfMiningConcessionModificationtarmfalsecreditdurationRecoverable value-added taxes incurred through additional debt and due to related party, net of mining concession...falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse17952451795245falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryRecoverable value-added taxes incurred through additional debt and due to related party, net of mining concession modification.No authoritative reference available.falsefalse59false0us-gaap_DebtInstrumentConvertibleBeneficialConversionFeatureus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse16950001695000falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryAmount of a favorable spread to a debt holder between the amount of debt being converted and the value of the securities received upon conversion. This is an embedded conversion feature of convertible debt issued that is in-the-money at the commitment date.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Beneficial Conversion Feature -URI http://asc.fasb.org/extlink&oid=6505963 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 4 -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 Emerging Issues Task Force (EITF) -Number 98-5 -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. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 00-27 -Paragraph 56 -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. falsefalse60false0us-gaap_DebtConversionOriginalDebtAmount1us-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse23094382309438falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe amount of the original debt being converted in a noncash (or part noncash) transaction. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 32 -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 230 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4304-108586 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4332-108586 falsefalse61false0us-gaap_NoncashOrPartNoncashAcquisitionValueOfAssetsAcquired1us-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse600000600000falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe value of an asset or business acquired in a noncash (or part noncash) acquisition. Noncash is defined as information about all investing and financing activities of an enterprise during a period that affect recognized assets or liabilities but that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4332-108586 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 32 -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 230 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4313-108586 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4304-108586 falsefalse62false0us-gaap_FairValueOfAssetsAcquiredus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse430921430921falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe fair value of assets acquired in noncash investing or financing activities.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4332-108586 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 32 -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 230 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4313-108586 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4304-108586 falsefalse63false0tarm_ReceivableReclassifiedToMiningDeposittarmfalsedebitdurationReceivable reclassified to mining deposit.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse2836828368falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryReceivable reclassified to mining deposit.No authoritative reference available.falsefalse64false0tarm_ConstructionInProgressReclassifiedToPropertyPlantAndEquipmenttarmfalsedebitdurationConstruction in progress reclassified to property plant and equipment.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1truefalsefalse21634852163485falsetruefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryConstruction in progress reclassified to property plant and equipment.No authoritative reference available.falsefalse160CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)NoRoundingUnKnownUnKnownUnKnownfalsetrue XML 28 defnref.xml IDEA: XBRL DOCUMENT No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Gain On Debt Extinguishment. No authoritative reference available. No authoritative reference available. No authoritative reference available. The average number of shares or units issued and outstanding that are used in calculating basic and diluted EPS. No authoritative reference available. No authoritative reference available. No authoritative reference available. Expense of mining deposit upon note modification. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Cancellation Of Shares For Settlement. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Purchase of or (reduction) in purchase of concession paid with notes payable plus capitalized interest. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Mining deposits. No authoritative reference available. Rent expense reclassified from capital lease. No authoritative reference available. No authoritative reference available. No authoritative reference available. Purchase of mining concession paid by debt to related party plus capitalized interest (negative movement due to note modification). No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Cash Flow Effect Of Common Stock Share Subscribed But Unissued Subscriptions Receivable. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Increase Decrease In Recoverable Value Added Taxes. No authoritative reference available. No authoritative reference available. No authoritative reference available. Noncontrolling Interest Cash From Sale Of Sale Of Common Stock Of Subsidiaries. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Exploration expenses. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Non-controlling interest - stock issued to third parties of subsidiaries. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Accrued interest converted to common stock. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Loss On Conversion Of Note Payable. No authoritative reference available. No authoritative reference available. No authoritative reference available. Receivable reclassified to mining deposit. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Construction in progress reclassified to property plant and equipment. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Recoverable value-added taxes incurred through additional debt and due to related party, net of mining concession modification. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. 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Each full warrant entitles Yamana to purchase one share of Adit&#39;s common stock at a price of $1.50 per share at any time on or before January 28, 2014.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> In connection with the sale of the units, Adit also signed a letter of intent that grants Yamana an option to acquire up to a 70% interest in Adit&#39;s Picacho gold/silver project. &nbsp;A definitive agreement is expected to be completed May 15, 2011. &nbsp;Upon completion of the definitive agreement, Adit will sell an additional 2,500,000 units to Yamana at a price of $1.00 per unit. The units will be identical to the units sold on January 28, 2011. &nbsp;From the $3,000,000 received from Yamana, Adit will be required to spend $2,000,000 in exploration work on the Picacho project within 12 months of signing the definitive agreement. &nbsp;</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 48px; text-align: justify"> Yamana can earn a 51% interest in the project by spending an additional $5,000,000 on the project within 30 months of the date of the definitive agreement and paying Adit an additional $1,000,000. Yamana can increase its interest to 70% by spending an additional $9,000,000 on the project and paying Adit an additional $2,000,000.</p> <p style="MARGIN: 0px"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="292"></td> <td width="172"></td> <td width="172"></td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Non-controlling interest at March 31, 2011</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FONT-SIZE: 11pt; MARGIN: 0px; text-align: center"> <strong>Non-controlling interest at December 31, 2010</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Combined Adit / ACM:</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt">Private placement</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 149px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -140px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 140px"> 1,499,501&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 149px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -140px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 140px"> 1,499,501&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt">Common stock for cash</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 500,000&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> -&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt">Finder&#39;s fees</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 95,215&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 95,215&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt"> Technical data for Picacho</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 240,000&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 240,000&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt">Officer compensation</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 487,500&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 487,500&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt">Officer options</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 134,978&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 134,978&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; PADDING-LEFT: 8px; FONT-SIZE: 11pt"> Cumulative statement of operations pickup through December 31, 2010</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 400,368</p> </td> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 400,368</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">&nbsp;&nbsp;Statement of operations pickup 2011</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 6,370</p> </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> -&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">AMM Non-controlling interest</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 5&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #e6e6e6; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 149px"> 5&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="292"> <p style="MARGIN: 0px; FONT-SIZE: 11pt">Total non-controlling interest</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 149px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -140px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 140px"> 2,550,461&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="172"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 149px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -140px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 140px"> 2,056,831&nbsp;</p> </td> </tr> </table> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <!--EndFragment--></div> </div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> NotefalsefalsefalsefalsefalseOthernonnum:textBlockItemTypenaThe entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.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 210.5-02.31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=6921930&loc=SL4573702-111684 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 17 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.17) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 falsefalse14false0us-gaap_Assetsus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse1011659910116599falsefalsefalsefalsefalse2truefalsefalse1168893511688935falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetarySum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 7 -Section 03 -Paragraph 12 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Topic 210 -SubTopic 10 -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 -Section S99 -Name Accounting Standards Codification -Publisher FASB -Paragraph 1 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Concepts (CON) -Number 6 -Paragraph 25 -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 SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 18 -Article 5 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 210.5-02.18) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 truefalse16true0us-gaap_LiabilitiesCurrentAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00falsefalsefalsefalsefalse2falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse17false0us-gaap_AccountsPayableAndAccruedLiabilitiesCurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse755364755364falsefalsefalsefalsefalse2truefalsefalse680221680221falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetarySum of the carrying values as of the balance sheet date of obligations incurred through that date and due within one year (or the operating cycle, if longer), including liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received, taxes, interest, rent and utilities, accrued salaries and bonuses, payroll taxes and fringe benefits.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 falsefalse18false0us-gaap_NotesPayableCurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse231161231161falsefalsefalsefalsefalse2truefalsefalse824001824001falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetarySum of the carrying values as of the balance sheet date of the portions of long-term notes payable due within one year or the operating cycle if longer.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 falsefalse19false0us-gaap_NotesPayableRelatedPartiesClassifiedCurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse100000100000falsefalsefalsefalsefalse2truefalsefalse100000100000falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe amount for notes payable (written promise to pay), due to related parties. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).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.(k)(1)) -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 850 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19(a)(5)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 4 -Section 08 -Paragraph k -Subparagraph 1 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 2 -Subparagraph d -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. falsefalse20false0us-gaap_DueToRelatedPartiesCurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse32378273237827falsefalsefalsefalsefalse2truefalsefalse34652323465232falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryCarrying amount as of the balance sheet date of obligations due all related parties. For classified balance sheets, represents the current portion of such liabilities (due within one year or within the normal operating cycle if longer).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 210.5-02.19(a)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: 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.(k)(1)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 4 -Section 08 -Paragraph k -Subparagraph 1 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 2 -Subparagraph d -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. falsefalse21false0us-gaap_LiabilitiesCurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse43243524324352falsefalsefalsefalsefalse2truefalsefalse50694545069454falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryTotal obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 21 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.21) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 truefalse22false0us-gaap_LongTermNotesPayableus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse6040560405falsefalsefalsefalsefalse2truefalsefalse10683501068350falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryCarrying value as of the balance sheet date of notes payable (with maturities initially due after one year or beyond the operating cycle if longer), excluding current portion.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: 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 falsefalse23false0us-gaap_Liabilitiesus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse43847574384757falsefalsefalsefalsefalse2truefalsefalse61378046137804falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetarySum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.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 210.5-02.19-26) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 truefalse24false0us-gaap_CommitmentsAndContingenciesus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00&nbsp;&nbsp;falsefalsefalsefalsefalse2falsefalsefalse00&nbsp;&nbsp;falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryRepresents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.17) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 17 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 7 -Section 03 -Paragraph 19 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 25 -Article 5 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.(a),19) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14326-108349 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 8, 9 -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 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.25) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 falsefalse25true0us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00falsefalsefalsefalsefalse2falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse26false0us-gaap_CommonStockValueus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse5848058480falsefalsefalsefalsefalse2truefalsefalse5723657236falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryAggregate par or stated value of issued nonredeemable common stock (or common stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable common shares, par value and other disclosure concepts are in another section within stockholders' equity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 Reference 2: 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 falsefalse27false0us-gaap_AdditionalPaidInCapitalus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse2612626126126261falsefalsefalsefalsefalse2truefalsefalse2451597824515978falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryExcess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of additional paid-in capital associated with common and preferred stock. For additional paid-in capital associated with only common stock, use the element additional paid in capital, common stock. For additional paid-in capital associated with only preferred stock, use the element additional paid in capital, preferred stock.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.30(a)(1)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 falsefalse28false0us-gaap_CommonStockSharesSubscriptionsus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse844685844685falsefalsefalsefalsefalse2truefalsefalse11296961129696falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryMonetary value of common stock allocated to investors to buy shares of a new issue of common stock before they are offered to the public. When stock is sold on a subscription basis, the issuer does not initially receive the total proceeds. In general, the issuer does not issue the shares to the investor until it receives the entire proceeds.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 210.5-02.29) -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 30 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 85-1 -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 505 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6403732&loc=d3e21300-112643 falsefalse29false0us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTaxus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse-281640-281640falsefalsefalsefalsefalse2truefalsefalse-246253-246253falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryAccumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e653-108580 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 26 -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 SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -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. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS115-1/124-1 -Paragraph 15D -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 220 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e637-108580 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e681-108580 falsefalse30false0us-gaap_RetainedEarningsAccumulatedDeficitus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse-23566405-23566405falsefalsefalsefalsefalse2truefalsefalse-21962357-21962357falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cumulative amount of the reporting entity's undistributed earnings or deficit.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 210.5-02.31(a)(3)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -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. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 falsefalse31false0us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse31813813181381falsefalsefalsefalsefalse2truefalsefalse34943003494300falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryTotal of Stockholders' Equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity. This excludes temporary equity and is sometimes called permanent equity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=6921628&loc=SL4568740-111683 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 55 -Paragraph 4I -URI http://asc.fasb.org/extlink&oid=6922042&loc=SL4590271-111686 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Name Accounting Research Bulletin (ARB) -Publisher AICPA -Number 51 -Paragraph 26 -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 AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A3 -Appendix A Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 25 -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 810 -SubTopic 10 -Section 45 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6921628&loc=SL4568447-111683 truefalse32false0us-gaap_MinorityInterestus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse25504612550461falsefalsefalsefalsefalse2truefalsefalse20568312056831falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryTotal of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which is directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest).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 210.5-02.31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A3 -Appendix A Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 27 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -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 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 7 -Section 03 -Paragraph 20 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Name Accounting Research Bulletin (ARB) -Publisher AICPA -Number 51 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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TEXT-INDENT: 48px; WIDTH: 110px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>Note 2.</strong></p> <p style="TEXT-INDENT: -2px; MARGIN: 0px; PADDING-LEFT: 110px; FONT-SIZE: 11pt"> <strong>Property, plant, equipment, mine development and land</strong></p> <p style="MARGIN: 0px; CLEAR: left"><br /> </p> <table style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="315"></td> <td width="111"></td> <td></td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>March 31, 2011</strong></p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>December 31, 2010</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>Unaudited</strong></p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top"> <p style="FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN: 0px; text-align: center"> <strong>Audited</strong></p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Land</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 93px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -84px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 19,590&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 109px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -100px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 100px"> 19,590&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Mining concessions:</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 11pt; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Pilar a</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 710,172&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 710,172&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Don Roman</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 521,739&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 521,739&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Las Nuvias</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 100,000&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 100,000&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Centenario b</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 635,571&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 1,946,545&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Pirita</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 246,455&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 246,455&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;Picacho</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 1,250,000&nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 1,250,000&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> &nbsp;&nbsp;La Palma c</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 79,974&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> -&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Mining concessions</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 3,543,911&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 4,774,911&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> Construction in Progress</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> -&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> -&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt"> Property, plant and equipment</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 3,444,749&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 3,603,210&nbsp;</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 7,008,250&nbsp;</p> </td> <td style="MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 8,397,711&nbsp;</p> </td> </tr> <tr> <td style="BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="315"> <p style="LINE-HEIGHT: 12pt; MARGIN: 0px; FONT-SIZE: 11pt">Less - accumulated depreciation</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top" width="111"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 93px"> 353,462</p> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #f3f3f3; MARGIN-TOP: 0px" valign="top"> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 109px"> 295,925</p> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="315"> <p style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px"> &nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="top" width="111"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 93px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -84px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 84px"> 6,654,788&nbsp;</p> </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="top"> <p style="LINE-HEIGHT: 12pt; MARGIN-TOP: 0px; TEXT-INDENT: 9px; WIDTH: 109px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt; MARGIN-RIGHT: -100px"> $</p> <p style="FLOAT: left; FONT-SIZE: 11pt; LINE-HEIGHT: 12pt; MARGIN-BOTTOM: -2px; MARGIN-TOP: 0px; text-align: right; WIDTH: 100px"> 8,101,786&nbsp;</p> </td> </tr> </table> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> Pilar, Don Ramon, Las Nuvias and Centenario properties are geographically located in Mexico and are known as the Don Roman Groupings.</p> <p style="MARGIN: 0px"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>a.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> In November 2008, the Company acquired eight mining concessions known as "Centenario" from an independent third party. The properties approximate 5,400 hectares and were purchased for $1,894,050, including $247,050 in value added taxes.</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> In June 2009, the Company and the note holder modified the agreement to 1 revalue the entire Centenario concession to $2,000,000, 2 apply $127,000 toward the purchase price which had already been paid and recorded as a mining deposit, and 3 apply $197,956 toward the new price of the concession which was originally paid by another subsidiary of the Company&#39;s Parent. &nbsp;These changes resulted in the following 1 additional debt of $28,044 plus related value added tax for these concessions, 2 the reduction of the amount of the mining deposit of $127,000, 3 the expense of $6,000 that AMM also paid but which was not included in the revaluation of the concession, and 4 the increase in Due to Related Party of $197,956 plus related value added tax. The effective amount financed in relation to this concession is $1,675,044 plus $251,257 of value added tax.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> In March 2011, AMM and the note holder agreed to reduce the purchase of the Centenario concession to $635,571. These changes resulted in the following: 1 decrease debt by $1,310,974; and 2 decrease recoverable value added taxes by $218,309. At March 31, 2011 the amended purchase price was paid in full. &nbsp;</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> In March 2011, the Company purchased technical data pertaining to Centenario from the former owner in consideration for 416,100 shares of the Company&#39;s common stock and $100,000 cash. The parties agreed that the value of the stock for the technical data was $2.00 per share for the Company&#39;s common stock. &nbsp;The Company has accounted for the shares at their fair market value as follows: &nbsp;416,100 shares of the Company&#39;s common stock were valued at $0.85. &nbsp;All fair market values were determined based on contemporaneous stock issuances for cash or if the stock was quoted on an exchange, it&#39;s closing stock price. All stock was issued April 2011.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 48px; WIDTH: 72px; MARGIN-BOTTOM: -2px; FLOAT: left; FONT-SIZE: 11pt"> <strong>b.</strong></p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify; TEXT-INDENT: -2px"> On March 2011, AMM executed an agreement to acquire six mining concessions known as La Palma from an independent third party. The properties approximate 2,104 hectares, and were purchased for a total of $92,800, including $12,800 in value added taxes. AMM paid $50,000 as a deposit for the concession mining deposit which was applied to the effective price of the property. &nbsp;The remaining balance of $42,800 is due thirty days after the execution date of the agreement. &nbsp;</p> <p style="CLEAR: left; MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> In March 2011, the Company purchased technical data pertaining to the La Palma from the former owner for 460,000 shares of the Company&#39;s common stock. The parties agreed that the value of the stock for the technical data was $2.00 per share for the Company&#39;s common stock. &nbsp;The Company has accounted for the shares at their fair market value as follows: &nbsp;460,000 shares of the Company&#39;s common stock were valued at $0.85. &nbsp;All fair market values were determined based on contemporaneous stock issuances for cash or if the stock was quoted on an exchange, it&#39;s closing stock price. All stock was issued April 2011.</p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> <strong>Other Fixed Assets</strong></p> <p style="MARGIN: 0px; text-align: justify"><br /> </p> <p style="FONT-SIZE: 11pt; MARGIN: 0px; PADDING-LEFT: 72px; text-align: justify"> For the three months ended March 31, 2011, Tara Minerals and its subsidiaries disposed of and sold equipment and other fixed assets, for a $4,260 loss on disposal and sale of assets.</p> <!--EndFragment--></div> </div><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> Note 2. Property,falsefalsefalsefalsefalseOthernonnum:textBlockItemTypenaThe entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13-14) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 -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 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2921-110230 falsefalse12Property, plant, equipment, mine development and landUnKnownUnKnownUnKnownUnKnownfalsetrue