-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MM/QgaCsu+S5UZz76PbH9xIKjdTb2oLdzGLqFGUhVbNng9LQ66Xyy3dXNif9TzTh RTsre+e52dIGxA1i7q3Mag== 0001052918-99-000064.txt : 19990701 0001052918-99-000064.hdr.sgml : 19990701 ACCESSION NUMBER: 0001052918-99-000064 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990630 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MINERAL MOUNTAIN MINING & MILLING CO CENTRAL INDEX KEY: 0000066600 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS METAL ORES [1090] IRS NUMBER: 820144710 STATE OF INCORPORATION: ID FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-K SEC ACT: SEC FILE NUMBER: 001-03319 FILM NUMBER: 99655904 BUSINESS ADDRESS: STREET 1: 421 COEUR D ALENE AVE STREET 2: STE 3 CITY: COEUR D ALENE STATE: ID ZIP: 83814 BUSINESS PHONE: 2086643544 MAIL ADDRESS: STREET 1: 421 COEUR D ALENE AVE STREET 2: STE 3 CITY: COEUR D ALENE STATE: ID ZIP: 83814 10-K 1 NOTE: FORMAT GUIDE FOR PRINTING READABLE HARD COPY PAGE LENGTH: 63 LINES PROBABLE MARGINS: 0.5" AT TOP AND BOTTOM, 0.5" AT RIGHT AND LEFT FONT: COURIER NEW, 10PT LINE ONE BEGINS AT "START" (This space left blank intentionally) START************************************************************************** SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended March 31, 1999 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the transition period from __________ to ___________ Commission File No. 001-3317 MINERAL MOUNTAIN MINING & MILLING COMPANY (Exact name of registrant as specified in its charter) IDAHO 82-0144710 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification Number) 421 Coeur d'Alene Ave - Suite 3 Coeur D Alene, Idaho 83814 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (208) 664-3544 Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered ------------------------ --------------------------- Common capital stock, 5 cent par value <*> <*> Shares were formerly listed on the Spokane Stock Exchange which closed May 24, 1991. Securities registered pursuant to Section 12(g) of the Act: NONE (Title of Class) 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 ( ) No ( X **) ** Forms 10-Q have been filed for the first three quarters of the fiscal year ended March 31, 1999. The last annual report Form 10-K filed by the Registrant was for their fiscal year ended March 31, 1992 The aggregate market value based on the bid price of the shares of Common Stock held by non-affiliates of the registrant at June 26, 1999 was approximately $65,210. For purposes of this computation, all officers, directors and 10% shareholders of the Registrant are deemed to be affiliates. Such determination should not be deemed an admission that such officers, directors, and 10% shareholders are affiliates. Indicate the number of shares outstanding of the Registrant's classes of Common Stock, as of the latest practicable date. Title of Each Class Number of Shares Outstanding of Common Stock at June 26, 1999 Common Stock five cent par value 3,078,049 ******************************************************************************* MINERAL MOUNTAIN MINING & MILLING COMPANY FORM 10-K March 31, 1999 TABLE OF CONTENTS PART I PAGE Item 1. Business 3 Item 2. Properties 3-4 Item 3. Legal Proceedings 4 Item 4. Submission of Matters to a Vote of Security Members. 4 PART II Item 5. Market for Registrant's Common Equity and Related Stockholder Matters 5 Item 6. Selected Financial Data 5-6 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Item 8. Financial Statements and Supplementary Data 7 Item 9. Disagreements on Accounting and Financial Disclosure 7 PART III Item 10. Directors and Executive Officers of the Registrant 8 Item 11. Executive Compensation. 8 Item 12. Security Ownership of Certain Beneficial Owners and Management 9 Item 13. Certain Relationships and Related Transactions 10 PART IV Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K 10 Index to Financial Statements 10 Signature Page 21 MINERAL MOUNTAIN MINING & MILLING COMPANY FORM 10-K -- PARTS I, II, III & IV March 31, 1999 PART I ITEM 1 - BUSINESS (a) General Developments of Business: The Registrant was incorporated under the laws of the state of Idaho on August 4, 1932 and is a mining company in the exploration stage. It is engaged in exploring for non-ferrous and precious metals, principally silver, lead and zinc. The mining properties of the registrant are located in Shoshone County, Idaho. For further description of the Registrant's properties see ITEM 2 of this report. If any ores should be developed and produced, these would be milled and the concentrates sold to metal smelters at prices determined by the metals on the open market. ITEM 2 - PROPERTIES (a) The Registrant has the following properties: The Registrant is the owner of an undivided one-third interest in the "Mineral Mountain Area" situated near Osburn, Idaho consisting of the four original Mineral Mountain Patented lode mining claims and those portions of six Chester and three Polaris claims which lie northerly from a warped plan lying parallel and 300 feet northerly from the center of the Chester Vein. The property of the Registrant lies between the main workings of the Sunshine Mine on the west, and the Consolidated Silver property on the east. Both of these properties are owned by Sunshine Mining Company. Sunshine's second quarter report of 1998 issued the following regarding their operations: "Exploration at the Sunshine is now focused on finding the next major ore body to mine after the West Chance is depleted. To that end two exploration programs have begun in the eastern portion of the mine. The first is a 3100-foot ramp project initiated in the second quarter that will access existing reserves around 10 Shaft and open up a large area for new exploration. Beginning from the 3100 level off the 10 Shaft, the ramp will be driven on a decline to the east down to the 4000 level, at which point it will turn back to the north and then back to the west ultimately bottoming back at the 10 Shaft on the 4400 level. Drill stations installed along the way will provide our first opportunity to explore much of this country, and in fact the initial drifting activity has already crossed a previously unmapped section of a vein. Document page 3 MINERAL MOUNTAIN MINING & MILLING COMPANY FORM 10-K -- PARTS I, II, III & IV March 31, 1999 The other program is further to the east, off the ConSil shaft. There we have begun a drilling program to examine the Deep Chester and the eastern Yankee Girl veins. The deep extensions of the Chester Vein are of particular interest, as the upper extensions of the Chester produced over 100 million ounces of silver, and the deeper eastern portion of the mine appears to have favorable stratigraphy to host a major ore body. Indeed, before closing the 10 Shaft, drifting had established a reserve block in the Good Hope area on the 5000 level containing 8300 tons at an average grade of 29 ounces per ton. Initial drilling into the Deep Chester area will attempt to expand this reserve block." Year 1998 Sunshine Annual Report to Shareholders issued in 1999 contained the following additional information on these two projects: "We are proceeding with plans to open up the eastern area of the Sunshine Mine, with several targets there that we think have the combined potential to contain more than 100 million ounces of silver. A ramp is planned to be driven downward from the 3700 level of the Sunshine Mine to connect with the 4000 level of the ConSil, opening up a large exploration territory in the process. This ramp will also provide good access to existing reserve blocks in the 101 Vein and the Chester Vein. Another branch of the ramp will be driven to support an exploration drilling effort into the Deep Chester Vein / Good Hope area. We believe this area holds the potential for a truly major reserve addition at the mine. Once the ConSil shaft connection is made, we will be able to convert the ConSil shaft into a production facility. This will increase the mine's capacity by 50%, and reduce unit production costs by at least another 10%. In other words, the mine's production could increase to about 8 million ounces at a cash cost of less than $4.00, assuming success in our exploration program." Directors of the Registrant are hopeful that the above work by Sunshine will lead to further exploration work of the Mineral Mountain Area. Document page 4 MINERAL MOUNTAIN MINING & MILLING COMPANY FORM 10-K -- PARTS I, II, III & IV March 31, 1999 ITEM 3 - LEGAL PROCEEDINGS The Registrant has no legal actions pending against it and it is not a party to any suits in any court of law, nor are the directors aware of any claims which could give rise to litigation. No director, officer, or affiliate of the registrant or owner of 5% or more of the Registrant's securities, or any associate is an adverse party to the registrant. There are no letters of inquiry, or proceedings by the Federal Government, or any State agency directed toward the Registrant. The Registrant is not involved in any civil rights negotiations or proceedings. ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No matters were submitted to a vote of the security holders in 1998 or the first quarter of 1999. PART II ITEM 5 - MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDERS MATTERS (a) Market information: The Registrant's stock was formerly traded on the Spokane Stock Exchange, Spokane, Washington which closed on May 24, 1991. Quotation for the Company's shares are now reported by the Spokane Quotation Bureau. The bid prices for the Registrant's stock for the period ending March 31, 1999 are as follows: High Low ---------- --------- 1997 First Quarter 3 cents 1 cent Second Quarter 3 cents 1 cent Third Quarter 3 cents 2 cents Fourth Quarter 3 cents 2 cents 1998 First Quarter 4 cents 2 cents Second Quarter 4 cents 2 cents Third Quarter 4 cents 2 cents Fourth Quarter 5 cents 2 cents 1999 First Quarter 5 cents 3 cents
Document page 5 MINERAL MOUNTAIN MINING & MILLING COMPANY FORM 10-K -- PARTS I, II, III & IV March 31, 1999 (b) Approximate Number of Equity Security Holders: Title of Class Number of Record Holders ---------------- -------------------------- Common Assessable Capital Approximately 1,449 as of Stock, par value five cents March 31, 1999 per share PART II ITEM 6 - SELECTED FINANCIAL DATA The following data should be read in conjunction with the Company's financial statements and the notes thereto: Yr Ended Yr Ended Yr Ended Yr Ended Yr Ended 3-31-99 3-31-98 3-31-97 3-31-96 3-31-95 ---------- ---------- ---------- --------- -------- Operating Revenue $ 928 $ 1,192 $ 729 $ 815 $ 17,645 Net Income (Loss) $ <3,823> $ <4,891> $<2,642> $ <2,269> $ 12,791 Net Income (Loss) Per Share $ <0.0012> $ <0.0015> $<0.0009> $ <0.0080> $ 0.0044 Total Assets $ 69,652 $ 72,496 $ 71,704 $ 73,839 $ 75,043 Working Capital $ 14,182 $ 18,005 $ 13,367 $ 16,009 $ 18,278
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (a) Full fiscal year: The Registrant is an exploration stage mining company and does not at present have any operating income. The company does not anticipate any material changes in its financial position in the immediate future. (1) Liquidity: As the Registrant has limited operations, the only funds required at this time are for corporate administrative costs. The annual cash needs of the Registrant are approximately $3,400. These funds can be made available in the future by the Registrant issuing stock on a private-placement basis or borrowing from the officers and directors after present cash resources are depleted. MINERAL MOUNTAIN MINING & MILLING COMPANY FORM 10-K -- PARTS I, II, III & IV March 31, 1999 (2) Capital Resources: At the present time the Registrant does not have any commitments for capital expenditures. Any capital expenditures would be very small, and would probably be financed by loans from the officers and directors. (3) Results of Operations: The patented claims are being maintained and the financial records are updated quarterly. PART II ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA See Item 14 Index ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE There were no disputes or disagreements with or changes of accountants. PART III ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (a) Identification of Directors: Name Age --------------------------- ----- Earl T. Siler 84 Donald L. Hess 70 Forrest Godde Richard L. Schwary 71 Josef Suveg 71
The Directors will serve until the next meeting of the shareholders or until their successors are elected and qualified. Earl Siler served as a director since 1993 Donald L. Hess has served as a director since 1993 Forrest Godde has served as a director since 1993 Richard L. Schwary has served as a director since 1985 Josef Suveg has served as a director since 1993 There are no arrangements or understandings between any of the directors and any other persons pursuant to which any director is to be selected as a director or nominee. MINERAL MOUNTAIN MINING & MILLING COMPANY FORM 10-K -- PARTS I, II, III & IV March 31, 1999 (b) Identification of Executive Officers: Name Age Title ---------------- ----- ------------------------------------- Earl T. Siler 84 President and Chief Executive Officer Donald L. Hess 70 Secretary/Treasurer and Principal Financial Officer
The officers serve in the positions indicated after their names for a period of one year or until a successor is elected and qualified. PART III ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued) (I) Background. Earl T. Siler, 74, is the President of the Registrant and is a Director. He is a retired Mining Equipment Dealer and has served on the Board of Directors for several mining companies over the past 25 years. Donald L. Hess, 70, is the Secretary-Treasurer of the Registrant and is a Director. He is a Certified Public Accountant with over 40 years of experience in public accounting. (II) Directorships. Earl T. Siler is the President and Director of the Registrant. He is a retired Mining Equipment Dealer and has served on the Board of Directors for several mining companies over the past 25 years. Donald L. Hess is the Secretary-Treasurer and Director of the Registrant. He is a Certified Public Accountant with over 40 years of experience in public accounting. Forrest Godde is a businessman and Director of Mineral Mountain Mining & Milling Company. Josef Suveg is a retired mining engineer and Director of Mineral Mountain Mining & Milling Company. Richard L. Schwary is a Director of Mineral Mountain Mining and Milling Company. ITEM 11 - EXECUTIVE COMPENSATION (a) (1) All executive officers Total annual compensation received by all executive officers is $600 per year. Document page 8 MINERAL MOUNTAIN MINING & MILLING COMPANY FORM 10-K -- PARTS I, II, III & IV March 31, 1999 ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT (a) Security ownership of certain beneficial owners. Amount & Nature of Title of Name of Beneficial Percent of Class Beneficial Owner Ownership Class --------- ------------------ ---------------- ----------- Common Borjessan Family Direct 12.07% Shares 371,458 shares Common Cede & Co On Deposit 9.52% Shares for brokers 292,979 shares
(b) Security ownership of management. Amount & Nature of Title of Name of Beneficial Percent of Class Beneficial Owner Ownership Class --------- ------------------ ---------------- ----------- Common Earl T. Siler 91,000 2.96% Shares Direct Common Donald L. Hess 326,713 10.61% Shares Direct Common Forrest Godde 40,000 1.30% Shares Direct Common Josef Suveg 31,000 1.00% Shares Direct Common Richard Schwary 44,200 1.44% Shares Direct Total of all Officers and Directors : 532,913 17.31% Shares of Record & Beneficially
Document page 9 MINERAL MOUNTAIN MINING & MILLING COMPANY FORM 10-K -- PARTS I, II, III & IV March 31, 1999 ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS (a) Transactions with Management and Others. There have been no transactions of the type set forth in Item 404(a) of Regulation S-X. (b) Certain Business Relationships. Donald L. Hess, Secretary of the Company, also maintains the financial records of the Registrant. He is also the owner of the Idaho Stock Transfer Company which acts as transfer agent and registrar of the Registrant's outstanding stock. PART IV ITEM 14 - EXHIBITS, FINANCIAL STATEMENTS SCHEDULES AND REPORTS ON FORM 8-K (a) Financial Statements. Statement of Financial Position, March 31, 1999, 1998 and 1997 12 Statement of Operations for the years ended March 31, 1999, 1998 and 1997 13 Statement of Stockholders' Equity from August 4, 1932 to March 31, 1993 and for the years ended March 31, 1994 through March 31, 1999 14 Statement of Cash Flows for the years ended March 31, 1999, 1998 and 1997 15 Notes to Financial Statements, March 31, 1999, 1998 and 1997 16-19 The Company's financial statements are unaudited in reliance upon Section 210.3-11 of Regulations S-X adopted by the Securities and Exchange Commission. (b) Reports on Form 8-K. No reports were filed by the Registrant on Form 8-K during the last quarter of 1998 or the first quarter of 1999. Document page 10 MINERAL MOUNTAIN MINING & MILLING COMPANY Statement of Financial Position, March 31, 1999, 1998 and 1997 (UNAUDITED) - ------------------------------------------------------------------- 1999 1998 1997 --------- --------- --------- ASSETS CURRENT ASSETS - --------------- Cash in bank $ 733 $ 1,458 $ 2,896 Certificate of deposit 15,111 15,230 15,000 Receivables and prepaids 2,000 --------- --------- --------- TOTAL CURRENT ASSETS 15,844 18,688 17,896 --------- --------- --------- PROPERTY - --------- Mining Property (Notes 2 & 3) 53,808 53,808 53,808 --------- --------- --------- TOTAL ASSETS $ 69,652 $ 72,496 $ 71,704 ========= ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES - -------------------- Accounts payable to Officers and Directors $ 1,662 $ 683 $ 4,529 --------- --------- --------- TOTAL CURRENT LIABILITIES 1,662 683 4,529 --------- --------- --------- SHAREHOLDERS' EQUITY - --------------------- Capital Stock, non-assessable, par value five cents per share, authorized 10,000,000 shares, issued 3,078,049 shares at 3-31-99 and 3-31-98, and 2,887,469 shares at 3-31-97 153,902 153,902 144,373 Paid-in surplus 339,978 339,978 339,978 accumulated during the exploration stage <425,890> <422,067> <417,176> --------- --------- --------- SHAREHOLDERS EQUITY 67,990 71,813 67,175 --------- --------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 69,652 $ 72,496 $ 71,704 ========= ========= =========
Prepared from the records without audit. The accompanying notes to financial statements are an integral part of this financial statement. Document page 11 MINERAL MOUNTAIN MINING & MILLING COMPANY Statement of Operations for the years ended March 31, 1999, 1998 and 1997 (UNAUDITED) - ---------------------------------------------------------------- 08/04/32 to 1999 1998 1997 03/31/99 -------- -------- -------- --------- INCOME Sale of timber $ 22,155 Interest income $ 928 $ 1,192 $ 729 3,963 -------- -------- -------- --------- TOTAL INCOME 928 1,192 729 26,118 -------- -------- -------- --------- EXPENSES Officers and Directors fees and expenses 600 4,029 494 118,672 Professional fees 2,802 898 851 269,635 SEC & stock exchange fees 132 6,232 Office supplies & expenses 481 445 425 11,077 Property & other taxes 36 36 36 1,406 Transfer Agency fees 400 375 365 2,175 Spokane Quotation Bureau 300 300 300 1,350 Engineering & property costs 900 9,426 Net general & administrative expenses August 4, 1932 through March 31, 1962 92,402 -------- -------- -------- --------- TOTAL EXPENSES 4,751 6,083 3,371 272,375 -------- -------- -------- --------- INCOME BEFORE OTHER INCOME AND EXPENSES <3,823> <4,891> <2,642> <246,257> Write-off capitalized exploration costs <196,997> Prior year debt adjustment 17,364 -------- -------- -------- --------- NET INCOME BEFORE TAXES <3,823> <4,891> <2,642> <425,890> INCOME TAXES 0 0 0 0 -------- -------- -------- --------- NET INCOME $ <3,823> $ <4,891> $ <2,642> $<425,890> ======== ======== ======== ========= PER SHARE $<0.0012> $<0.0015> $<0.0009> $ <0.1384> ======== ======== ======== =========
Prepared from the records without audit. The accompanying notes to financial statements are an integral part of this financial statement. Document page 12 MINERAL MOUNTAIN MINING & MILLING COMPANY Statement of Stockholders' Equity from August 4, 1932 to March 31, 1993, And for the years ended March 31, 1994 through March 31, 1999 (UNAUDITED) - --------------------------------------------------------------------------- Number Accumu- Cost of of Shares Par Paid-In lated Treasury Issued Value Surplus Stock Total ---------- -------- -------- ---------- --------- --------- From 8-4-32 to 3-31-93 2,531,649 $126,582 $341,967 $<240,822> $ <2,355> $225,372 3-31-94 Net Loss <184,234> <184,234> Stock Issuances 180,000 9,000 9,000 ---------- -------- -------- ---------- --------- --------- BALANCES 3-31-94 2,711,649 135,582 341,967 <425,056> <2,355> 50,138 3-31-95 Net Income 12,791 12,791 Stock Issuances 175,820 8,791 8,791 Treasury Stock Issued <1,989> 2,355 366 ---------- -------- -------- ---------- --------- --------- BALANCES 3-31-95 2,887,469 144,373 339,978 <412,265> 0 72,086 3-31-96 Net Loss <2,269> <2,269> ---------- -------- -------- ---------- --------- --------- BALANCES 3-31-96 2,887,469 144,373 339,978 <414,534> 0 69,817 3-31-97 Net Loss <2,642> <2,642> ---------- -------- -------- ---------- --------- --------- BALANCES 3-31-97 2,887,469 144,373 339,978 <417,176> 0 67,175 3-31-98 Stock Issuances For services 190,280 9,529 9,529 Net Loss <4,891> <4,891> ---------- -------- -------- ---------- --------- --------- BALANCES 3-31-98 3,078,049 153,902 339,978 <422,067> 0 71,813 Document page 13 MINERAL MOUNTAIN MINING & MILLING COMPANY Statement of Stockholders' Equity from August 4, 1932 to March 31, 1993, And for the years ended March 31, 1994 through March 31, 1999 (Continued) (UNAUDITED) - ----------------------------------------------------------------------------
Number Accumu- Cost of of Shares Par Paid-In lated Treasury Issued Value Surplus Stock Total ---------- -------- -------- ---------- --------- --------- 3-31-99 Net Loss <3,823> <3,823> ---------- -------- -------- ---------- --------- --------- BALANCES 3-31-99 3,078,049 $153,902 $339,978 $<425,890> $ 0 $ 67,990 ========== ======== ======== ========== ========= =========
Prepared from the records without audit. The accompanying notes to financial statements are an integral part of this financial statement. Document page 14 MINERAL MOUNTAIN MINING & MILLING COMPANY Statement of Cash Flows for the years ended March 31, 1999, 1998 and 1997 (UNAUDITED) - ---------------------------------------------------------------- 1999 1998 1997 --------- --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ <3,823> $ <4,891> $ <2,642> Adjustments to reconcile to net cash provided or (used): Increase receivables & prepaids 2,000 2,000 2,700 Increase to payables 979 <3,846> 507 --------- --------- --------- NET CHANGE FROM OPERATIONS <844> <6,737> 565 --------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Shares issued in payment of Services - 110,580 shares 5,529 --------- --------- --------- NET INCREASE TO CASH <844> <1,208> 565 CASH BEGINNING OF PERIOD 16,688 17,896 17,331 --------- --------- --------- CASH END OF PERIOD $ 15,844 $ 16,688 $ 17,896 ========= ========= ========= NON-CASH TRANSACTIONS NONE NONE NONE ========= ========= ========= INTEREST AND INCOME TAXES PAID NONE NONE NONE ========= ========= =========
Prepared from the records without audit. The accompanying notes to financial statements are an integral part of this financial statement. Document page 15 MINERAL MOUNTAIN MINING & MILLING COMPANY Notes to Financial Statements, March 31, 1999, 1998 and 1997 (UNAUDITED) - ------------------------------------------------------------- NOTE 1 - COMPANY BUSINESS - -------------------------- The Company was incorporated under the laws of the state of Idaho on August 4, 1932, and has been in the exploratory stage since its inception. It is engaged in the business of mining and is exploring for non-ferrous and precious metals, primarily silver, lead and zinc. The property of the Company is situated in the Coeur d'Alene Mining District of Shoshone County, Idaho. The Company has no commercial production operations. NOTE 2 -ACCOUNTING POLICIES - ---------------------------- Use of Estimates in the Preparation of Financial Statements: 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 disclosures 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. The significant accounting principles and practices of the Company are as follows: a. The financial statements are prepared on the accrual basis of accounting. b. In accord with Statement No. 7 of the Financial Standards Board, regarding development stage companies , the Company charges costs related to exploration to operations with the exception of those which in the opinion of management have a continuing value. All previously capitalized exploration costs were written off during the year ended March 31, 1994. c. The Company is unable to present cumulative statements of shareholders' equity and cash flows from inception of exploration stage activities due to incomplete prior year accounting records. Presentation of cumulative statements is required by Statement of Financial Accounting Standards No. 7 of the Financial Accounting Standards Board. d. The Company considers cash equivalents to be highly liquid investments with an original maturity of three months or less. Document page 16 MINERAL MOUNTAIN MINING & MILLING COMPANY Notes to Financial Statements, March 31, 1999, 1998 and 1997 (UNAUDITED) - ------------------------------------------------------------- NOTE 2 - ACCOUNTING POLICIES (Continued - ----------------------------------------- e. No current provision has been made for depletion or depreciation charges since the Company is in the exploratory stage. If and when a productive stage is reached, the cost of the claims would be charged off over the estimated life of the mine as ore is extracted. f. The deficit accumulated during the exploratory stage in the amount of $196,997 had been capitalized for income tax purposes to March 31, 1993. As no known ore bodies or productive vein systems had been discovered, these costs were written off for tax purposes on March 31, 1994. g. The Company has a recorded cost of $53,808 in its mining property which comprises 77% of total assets at March 31, 1999. The ultimate realization of the Company's carrying cost in these assets is dependent upon the discovery and the ability of the Company to finance successful exploration and development of commercial ore deposits, if any, in the mining properties in sufficient quantity for the Company to recover its recorded costs or to sell such items in excess of its carrying cost. The ultimate realization of the Company's carrying costs in the mineral properties at March 31, 1999, cannot presently be determined. No provision for any possible revaluation of these assets has been made in the financial statements other than the write off of previously capitalized exploration costs at March 31, 1994. h. Earnings per share are computed using the weighted average of shares outstanding. i. In March 1995, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of" (SFAS 121). SFAS 121 became effective for the fiscal year beginning January 1, 1996. This new standard requires measurement of impairment of long-lived assets, certain identifiable intangibles and goodwill and requires that if a long-lived asset is impaired (based on the fair value of the asset (which may, in some cases, be based on an estimate of expected future cash flows using a discount rate). The Company did not record any adjustment as a result of adopting this standard. j. Deferred income tax procedures. See Note 5. Document page 17 MINERAL MOUNTAIN MINING & MILLING COMPANY Notes to Financial Statements, March 31, 1999, 1998 and 1997 (UNAUDITED) - ------------------------------------------------------------- NOTE 3 -MINING PROPERTY AND AGREEMENTS - --------------------------------------- The Company's mining property consists of four patented mining claims which were acquired by the issuance of 1,100,000 shares of common capital stock. Prior to 1946, the Company performed a limited amount of exploration work on its claims over a number of years. An agreement was entered into on October 16, 1946 between Polaris Mining Company (now Hecla Mining Company) and Chester Mining Company providing for exploration and development work on a unitized area consisting of the four Mineral Mountain claims plus specifically defined portions of six Chester and three Polaris claims. Polaris was to perform the exploration work which was to be paid by Mineral Mountain. If the venture was successful, ores mined from the Mineral Mountain Area were to be divided on a basis of one-third each after 2/3 of all exploratory costs advanced by Mineral Mountain had been reimbursed from net smelter returns. The costs paid out by Mineral Mountain were included in the capitalized exploratory costs previously shown on the balance sheet. All capitalized exploration costs were written off on March 31, 1994. Work under the 1946 agreement was completed in the year 1948 without discovery of commercial ore. Another agreement on the "Mineral Mountain Area" was entered into on July 24, 1957. The 1957 agreement refers to termination of the 1946 agreement and that Polaris (Hecla Mining Company), Chester Mining Company and Mineral Mountain Mining and Milling Company, each owned an undivided one third interest in any commercial ore which may be found in the area. The 1957 agreement also provided that Mineral Mountain would not be reimbursed for 2/3 of the exploration costs it had expended on the unitized property under the 1946 agreement. The 1957 agreement further provided that Polaris (Hecla) was to perform exploratory work on the unitized area. Polaris (Hecla) reported that it had expended $102,067 under the 1957 agreement and that work was suspended in July 1958. The percentage interests set out in the 1957 agreement were Polaris, 50%, and Mineral Mountain and Chester, 25% each. Hecla Mining Company deeded all their interest in the Mineral Mountain Area to Sunshine Mining Company on June 26, 1984. Document page 18 MINERAL MOUNTAIN MINING & MILLING COMPANY Notes to Financial Statements, March 31, 1999, 1998 and 1997 (UNAUDITED) - ------------------------------------------------------------- NOTE 4 -CAPITALIZATION - ----------------------- Mineral Mountain was originally incorporated on August 4, 1932, with an authorized capital of 2,000,000 shares of common capital stock with a par value of 5 cents per share. On March 31, 1952, the shareholders amended the authorized capital to 3,000,000 shares of 5 cents par value capital stock. On August 21, 1984, the shareholders amended the authorized capital to 10,000,000 shares of 5 cent par value capital stock. A summary of Mineral Mountain shares issued since inception to March 31, 1999 is as follows : 03-31-99 ---------- Cash 1,077,700 Services 597,729 Property 1,100,000 Payment of liabilities 302,620 ----------- TOTAL OUTSTANDING 3,078,049 ===========
A summary of items making up the paid-in surplus account at March 31, 1999 is as follows: Premium on shares $ 452,662 Discount on shares <39,472> Reacquired shares - discount <15,423> Commission & other <57,789> ----------- TOTAL $ 339,978 ===========
During the year ended March 31, 1998, a total of 190,580 shares were issued for services rendered or in the payment of accounts payable for services rendered in prior years. Document page 19 MINERAL MOUNTAIN MINING & MILLING COMPANY Notes to Financial Statements, March 31, 1999, 1998 and 1997 (UNAUDITED) - ------------------------------------------------------------- NOTE 5 -INCOME TAXES - --------------------- The corporation has a net operating loss carryover for income tax purposes of $202,432 which expires as follows: 03-31-09 $ 188,807 03-31-11 2,269 03-31-12 2,642 03-31-13 4,891 03-31-19 3,823 In March 1992, the Financial Accounting Standards Board issued Statement 109 on accounting for income taxes. Statement 109 changed the method companies use to account for income taxes from the deferred method to an asset and liability method. At March 31, 1999, 1998 and 1997, deferred tax differences primarily relate to capitalization of exploration costs for income tax purposes. At March 31, 1999, 1998 and 1997, deferred tax differences primarily relate to the use of various tax return Schedule M-1 items like the use of a different accounting method for prior year administrative costs which have been written off for book purposes but capitalized for income tax purposes. The Company's deferred tax liabilities are completely offset by its net operating loss carryovers. As there is no certainty as to the utilization of these items, the benefit attributable thereto would be fully offset by a valuation allowance. Document page 20 SIGNATURES ------------ Pursuant to the requirements of Section 13, of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MINERAL MOUNTAIN MINING & MILLING COMPANY /s/ DONALD L. HESS /s/ EARL T. SILER _____________________________ _____________________________ Donald L. Hess Earl T. Siler Secretary - Treasurer, President, Chief Principal Financial Officer Administrative Officer and and Director Director Date: June 24, 1999 Date: June 24, 1999 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and as of the date indicated. /s/ EARL T. SILER Date: June 24, 1999 _____________________________ Earl T. Siler President, Director and Principal Executive Officer /s/ DONALD L. HESS Date: June 24, 1999 _____________________________ Donald L. Hess Secretary - Treasurer, Director and Principal Financial Officer /s/ FORREST GODDE Date: June 24, 1999 _____________________________ Forrest Godde Director /s/ JOSEF SUVEG Date: June 24, 1999 _____________________________ Josef Suveg Director _____________________________ Richard L. Schwary Director EX-27 2
5 Financial Data Schedule This schedule contains summary financial information extracted from the Statement of Financial Condition for Mineral Mountain Mining & Milling Company at March 31, 1999, the Statements of Income for the period ended March 31, 1999, and is qualified in its entirety by reference to such financial statements. YEAR MAR-31-1999 MAR-31-1999 15,844 0 0 0 0 15,844 53,808 0 69,652 1,662 0 0 0 153,902 (85,912) 69,652 0 928 0 0 4,751 0 0 (3,823) 0 (3,823) 0 0 0 (3,823) (0.001) (0.001)
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