Quarterly report pursuant to Section 13 or 15(d)

Condensed Statements of Cash Flows (Unaudited)

v2.4.0.8
Condensed Statements of Cash Flows (Unaudited) (USD $)
 6 Months Ended 26 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Cash flows from operating activities:      
Net loss $ (365,925) $ (4,262,018) $ (8,011,817)
Adjustments to reconcile net loss to net cash used in operating activities:      
Amortization of prepaid expenses       95,034
Amortization of debt issuance costs    517 5,206
Amortization of debt discount 27,022 47,460 480,986
Impaiment of mineral rights       500,000
Derivative liability expense    174,129 174,128
Change in fair value of derivative liabilities (1,492) (44,735) 518,708
Stock based consulting       130,000
Stock based compensation expense    41,516 373,648
Common stock issued for services    3,500,000 3,500,000
Changes in operating assets and liabilities:      
(Increase)/decrease in prepaid expenses 7,500 26,473 11,142
Increase in accounts payable and accrued expenses 332,875 374,357 1,439,134
Net cash used in operating activities (20) (142,301) (783,831)
Cash flows from financing activities:      
Proceeds from issuance of preferred stock       50,000
Proceeds from issuance of common stock       550,000
Proceeds from exercise of stock warrants         
Net proceeds from debentures    127,500 127,500
Net cash provided by financing activities    127,500 727,500
Net decrease in cash (20) (14,801) (56,331)
Cash, beginning of period 20 15,047 56,331
Cash, end of period    246   
Supplemental disclosure of cash flow information:      
Cash paid for interest         
Cash paid for taxes         
Supplemental disclosure of non-cash investing and financing activities:      
Contributed capital in connection with an extinguishment of a convertible debenture       31,666
Issuance of common stock for convertible debentures    55,000 505,000
Reclassification of derivative liability to equity       9,662,196
Issuance of common stock in connection with the transfer and conveyance of certain silver mining claim       500,000
Issuance of convertible promissory notes    $ 105,882 $ 105,882