Magellan Gold Corp Files Q1 2024 10-Q

TL;DR

MAGELLAN GOLD Corp filed its Q1 2024 10-Q. Financials are in.

AI Summary

MAGELLAN GOLD Corp filed its 10-Q for the period ending March 31, 2024. The company, incorporated in Nevada and operating in the metal mining sector, reported financial data for the first quarter of 2024. Its business address is in Wallace, Idaho.

Why It Matters

This filing provides investors with an update on Magellan Gold Corp's financial performance and position as of the end of the first quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine financial filing with no immediate red flags or significant new information presented in the provided snippet.

Key Players & Entities

• MAGELLAN GOLD Corp (company) — Filer
• 20240331 (date) — Period of Report
• 20240604 (date) — Filing Date
• WALLACE (location) — Business Address City
• ID (location) — Business Address State
• 83873 (postal_code) — Business Address Zip
• METAL MINING (industry) — Standard Industrial Classification

FAQ

Key Financial Figures

• $400,000 — recorded as a deposit, and shall spend $400,000 on the Kris Project in allowable expend
• $0.001 — f the Company's common stock, par value $0.001 per share; and (ii) GEM agreed to assig
• $2.00 — tock warrants with an exercise price of $2.00 per share. The Company evaluated the co
• $0.50 — tock warrants with an exercise price of $0.50 per share for a term of 5 years. Two re
• $60,000 — 5 years. Two related parties purchased $60,000 of the 2020A notes. The Company evaluat
• $237,263 — in capital as of December 31, 2020. The $237,263 debt discount will be amortized over th
• $25,000 — ble quarterly in arrears. In July 2020, $25,000 of Series 2020A 8% Unsecured Convertibl
• $54,000 — ental value of the debt modification of $54,000 will be recorded over the remaining lif
• $0.30 — 4 shares of common stock at a price of $0.30 per share for a total value of $ 70,000
• $0.24 — 4 shares of common stock at a price of $0.24 per share for a total value of $ 56,000
• $56,000 — ental value of the debt modification of $56,000 will be recorded over the remaining lif

Filing Documents

• magellan_i10q-033124.htm (10-Q) — 416KB
• magellan_ex3101.htm (EX-31.1) — 10KB
• magellan_ex3102.htm (EX-31.2) — 9KB
• magellan_ex3201.htm (EX-32.1) — 4KB
• magellan_ex3202.htm (EX-32.2) — 4KB
• 0001683168-24-003961.txt ( ) — 2965KB
• mage-20240331.xsd (EX-101.SCH) — 24KB
• mage-20240331_cal.xml (EX-101.CAL) — 31KB
• mage-20240331_def.xml (EX-101.DEF) — 107KB
• mage-20240331_lab.xml (EX-101.LAB) — 238KB
• mage-20240331_pre.xml (EX-101.PRE) — 202KB
• magellan_i10q-033124_htm.xml (XML) — 289KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Consolidated Balance Sheets (unaudited) 3 Consolidated Statements of Operations (unaudited) 4 Consolidated Statements of Shareholders' Deficit (unaudited) 5 Consolidated Statements of Cash Flows (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 15

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 18

Controls and Procedures

Item 4. Controls and Procedures 18

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 19

Risk Factors

Item 1A. Risk Factors 1 9

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 19

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 19

Other Information

Item 5. Other Information 19

Exhibits

Item 6. Exhibits 19

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Magellan Gold Corporation Consolidated Balance Sheets (Unaudited) March 31, 2024 December 31, 2023 ASSETS Current assets Cash $ 1,182 $ 99 Total current assets 1,182 99 Mineral rights and properties 522,565 100,000 Total assets $ 523,747 $ 100,099 LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities: Accounts payable $ 199,862 $ 236,322 Accounts payable - related party 91,750 73,750 Accrued liabilities 214,089 214,089 Convertible note payable, net - related party 285,000 185,000 Convertible note payable, net 430,978 530,978 Accrued interest - related parties 77,807 39,778 Accrued interest 186,849 204,197 Advances payable - related party 21,875 21,875 Advances payable 39,338 39,338 Notes payable 100,000 100,000 Notes payable - related party 128,000 53,000 Derivative liability 95,662 86,443 Total current liabilities 1,871,210 1,784,770 Total liabilities 1,871,210 1,784,770 Commitments and contingencies – – Shareholders' deficit: Preferred shares, 25,000,000 shares Series A preferred stock - $ 10.00 stated value; 2,500,000 authorized; 0 shares issued and outstanding – – Common shares, $ 0.001 par value; 1,000,000,000 shares authorized; 25,412,072 and 19,577,072 shares issued and outstanding, respectively 25,412 19,577 Additional paid-in capital 19,751,168 19,289,530 Accumulated deficit ( 21,124,043 ) ( 20,993,778 ) Shareholders' deficit: ( 1,347,463 ) ( 1,684,671 ) Total liabilities and shareholders' deficit $ 523,747 $ 100,099 See accompanying notes to the unaudited consolidated financial statements 3 Magellan Gold Corporation Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2024 2023 Operating expenses: General and administrative expenses $ 100,364 $ 33,945 Total operating expenses 100,364 33,945 Operating loss 100,364 33,945 Other expense: Interest expense (

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 – Organization, Basis of Presentation, and Nature of Operations Organization and Nature of Operations Magellan Gold Corporation ("we" "our", "us", the "Company" or "Magellan") was incorporated on September 28, 2010, under the laws of the State of Nevada. Our principal business is the acquisition and exploration of mineral resources. We have not presently determined whether the properties to which we have mining rights contain mineral reserves that are economically recoverable. Our primary focus is to explore and develop mineral properties in the United States. Effective March 31, 2020, we divested our subsidiary holding all our international assets and plan to advance our Center Star Gold Project and our Kris Project towards resource definition and eventual development, to advance the exploration efforts on one or more of the Company's copper project, Blue Jacket, Copper Cliff or Copper Butte and possibly to acquire additional mineral rights and conduct additional exploration, development and permitting activities. Our mineral lease payments, mineral claim annual holding costs, permitting applications and exploration and development efforts will require additional capital. We rely upon the sale of our securities as well as advances and loans from executive management and significant shareholders to fund our operations as we have not generated any significant revenue. Note 2 – Summary of Significant Accounting Policies Basis of Presentation We prepare our financial statements in accordance with accounting principles generally accepted in the United States ("GAAP"). The accompanying unaudited interim consolidated financial statements have been prepared in accordance with GAAP for interim financial information in accordance with Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, a

financial statements

financial statements. Liquidity and Going Concern Our consolidated financial statements have been prepared on a going concern basis, which assumes that we will be able to meet our obligations and continue our operations during the next fiscal year. Asset realization values may be significantly different from carrying values as shown in our consolidated financial statements and do not give effect to adjustments that would be necessary to the carrying values of assets and liabilities should we be unable to continue as a going concern. At March 31, 2024, we had a working capital deficit of $ 1,870,028 , we had not yet generated any significant revenues or achieved profitable operations and we have accumulated losses of $ 21,124,043 . We expect to incur further losses in the development of our business, all of which raises substantial doubt as to our ability to continue as a going concern. Our ability to continue as a going concern depends on our ability to generate future profits and/or to obtain the necessary financing to meet our obligations arising from normal business operations when they come due, of which there can be no assurance. We anticipate that additional funding will be in the form of additional loans from officers, directors or significant shareholders, or equity financing from the sale of our common stock but cannot assure that any future financing will occur. Note 3 – Mineral Rights and Properties Kris Project On June 6, 2023, the Company entered a memorandum of understanding for earn-in agreement ("MOU") with Gold Express Mines, Inc. ("GEM"). Per the MOU, the Company agreed to earn-in for up to 50% working interest in the Kris Project, which is comprised of 74 unpatented mining claims located in Plumas County, CA. In March 2023, the Company paid Gold Express Mines, Inc. $ 100,000 , which was recorded as a deposit, and shall spend $400,000 on the Kris Project in allowable expenditures over the next thirty-six months, assuming permitting for the

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