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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.
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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:
<TABLE>
High Low
---------- ---------
<S> <C> <C>
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
</TABLE>
Document page 5
<PAGE>
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:
<TABLE>
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
---------- ---------- ---------- --------- --------
<S> <C> <C> <C> <C> <C>
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
</TABLE>
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.
<PAGE>
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:
<TABLE>
Name Age
--------------------------- -----
<S> <C>
Earl T. Siler 84
Donald L. Hess 70
Forrest Godde
Richard L. Schwary 71
Josef Suveg 71
</TABLE>
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.
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
FORM 10-K -- PARTS I, II, III & IV
March 31, 1999
(b) Identification of Executive Officers:
<TABLE>
Name Age Title
---------------- ----- -------------------------------------
<S> <C> <C>
Earl T. Siler 84 President and Chief Executive Officer
Donald L. Hess 70 Secretary/Treasurer and Principal
Financial Officer
</TABLE>
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
<PAGE>
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.
<TABLE>
Amount &
Nature of
Title of Name of Beneficial Percent of
Class Beneficial Owner Ownership Class
--------- ------------------ ---------------- -----------
<S> <C> <C> <C>
Common Borjessan Family Direct 12.07%
Shares 371,458 shares
Common Cede & Co On Deposit 9.52%
Shares for brokers
292,979 shares
</TABLE>
(b) Security ownership of management.
<TABLE>
Amount &
Nature of
Title of Name of Beneficial Percent of
Class Beneficial Owner Ownership Class
--------- ------------------ ---------------- -----------
<S> <C> <C> <C>
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
</TABLE>
Document page 9
<PAGE>
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
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
<An Exploratory Stage Mining Company>
Statement of Financial Position, March 31, 1999, 1998 and 1997
(UNAUDITED)
- -------------------------------------------------------------------
<TABLE>
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
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 <Note 4> 153,902 153,902 144,373
Paid-in surplus 339,978 339,978 339,978
<Deficit> 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
========= ========= =========
</TABLE>
Prepared from the records without audit.
The accompanying notes to financial statements are an integral
part of this financial statement.
Document page 11
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
<An Exploratory Stage Mining Company>
Statement of Operations for the years ended
March 31, 1999, 1998 and 1997
(UNAUDITED)
- ----------------------------------------------------------------
<TABLE>
08/04/32
to
1999 1998 1997 03/31/99
-------- -------- -------- ---------
<C> <S> <S> <S> <S>
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 <Note 4> 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 <LOSS> 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 <LOSS>
BEFORE TAXES <3,823> <4,891> <2,642> <425,890>
INCOME TAXES <Note 5> 0 0 0 0
-------- -------- -------- ---------
NET INCOME <LOSS> $ <3,823> $ <4,891> $ <2,642> $<425,890>
======== ======== ======== =========
PER SHARE $<0.0012> $<0.0015> $<0.0009> $ <0.1384>
======== ======== ======== =========
</TABLE>
Prepared from the records without audit.
The accompanying notes to financial statements are an integral
part of this financial statement.
Document page 12
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
<An Exploratory Stage Mining 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)
- ---------------------------------------------------------------------------
<TABLE>
Number Accumu- Cost of
of Shares Par Paid-In lated Treasury
Issued Value Surplus <Deficit> Stock Total
---------- -------- -------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
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
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
<An Exploratory Stage Mining 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)
- ----------------------------------------------------------------------------
</TABLE>
<TABLE>
Number Accumu- Cost of
of Shares Par Paid-In lated Treasury
Issued Value Surplus <Deficit> Stock Total
---------- -------- -------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
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
========== ======== ======== ========== ========= =========
</TABLE>
Prepared from the records without audit.
The accompanying notes to financial statements are an integral
part of this financial statement.
Document page 14
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
<An Exploratory Stage Mining Company>
Statement of Cash Flows for the years ended March 31, 1999, 1998 and 1997
(UNAUDITED)
- ----------------------------------------------------------------
<TABLE>
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net Income<Loss> $ <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 <decrease>
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 <DECREASE> 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
========= ========= =========
</TABLE>
Prepared from the records without audit.
The accompanying notes to financial statements are an integral
part of this financial statement.
Document page 15
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
<An Exploratory Stage Mining 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 <which
classification includes exploration stage mining
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
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
<An Exploratory Stage Mining 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
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
<An Exploratory Stage Mining 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
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
<An Exploratory Stage Mining 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 <Note: the respective Boards of
Directors determined the basis of each consideration of
capital stock issuance in non-cash transactions>:
<TABLE>
03-31-99
----------
<S> <C>
Cash 1,077,700
Services 597,729
Property 1,100,000
Payment of liabilities 302,620
-----------
TOTAL OUTSTANDING 3,078,049
===========
</TABLE>
A summary of items making up the paid-in surplus account at
March 31, 1999 is as follows:
<TABLE>
<C> <S>
Premium on shares $ 452,662
Discount on shares <39,472>
Reacquired shares - discount <15,423>
Commission & other <57,789>
-----------
TOTAL $ 339,978
===========
</TABLE>
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
<PAGE>
MINERAL MOUNTAIN MINING & MILLING COMPANY
<An Exploratory Stage Mining 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
<PAGE>
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
<REGISTRANT>
/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
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
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.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 15,844
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 15,844
<PP&E> 53,808
<DEPRECIATION> 0
<TOTAL-ASSETS> 69,652
<CURRENT-LIABILITIES> 1,662
<BONDS> 0
0
0
<COMMON> 153,902
<OTHER-SE> (85,912)
<TOTAL-LIABILITY-AND-EQUITY> 69,652
<SALES> 0
<TOTAL-REVENUES> 928
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,751
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (3,823)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,823)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,823)
<EPS-BASIC> (0.001)
<EPS-DILUTED> (0.001)
</TABLE>
