Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 09, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | GOLDEN QUEEN MINING CO LTD | |
Entity Central Index Key | 1,025,362 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | GQM | |
Entity Common Stock, Shares Outstanding | 300,101,444 |
Condensed Consolidated Interim
Condensed Consolidated Interim Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 10,538 | $ 2,937 |
Inventories (Note 4) | 17,108 | 9,028 |
Prepaid expenses and other current assets | 792 | 699 |
Total current assets | 28,438 | 12,664 |
Property, plant, equipment and mineral interests (Note 5) | 141,407 | 141,848 |
Advance minimum royalties | 304 | 304 |
Total Assets | 170,149 | 154,816 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 5,249 | 6,984 |
Credit facility (Note 12 (v)) | 0 | 3,000 |
Current portion of note payable (Note 12 (ii)) | 24,512 | 7,712 |
Current portion of loan payable (Note 6) | 8,096 | 7,629 |
Derivative liability - Warrants (Note 7) | 373 | 441 |
Total current liabilities | 38,230 | 25,766 |
Note payable (Note 12 (ii)) | 0 | 22,387 |
Loan payable (Note 6) | 8,306 | 9,614 |
Asset retirement obligation (Note 8) | 2,413 | 1,838 |
Deferred tax liability | 8,197 | 8,197 |
Total liabilities | 57,146 | 67,802 |
Temporary Equity | ||
Redeemable portion of non-controlling interest (Note 12 (iv)) | 23,250 | 24,214 |
Shareholders' Equity | ||
Common shares, no par value, unlimited shares authorized (2017 - unlimited); 300,101,444 (2017 - 111,048,683) shares issued and outstanding (Note 9) | 95,494 | 71,126 |
Additional paid-in capital | 43,933 | 43,853 |
Deficit accumulated | (94,549) | (88,500) |
Total shareholders' equity attributable to GQM Ltd. | 44,878 | 26,479 |
Non-controlling interest (Note 9 (iv)) | 44,875 | 36,321 |
Total Shareholders' Equity | 89,753 | 62,800 |
Total Liabilities, Temporary Equity and Shareholders' Equity | $ 170,149 | $ 154,816 |
Condensed Consolidated Interim3
Condensed Consolidated Interim Balance Sheets (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized, Unlimited | Unlimited | Unlimited |
Common Stock, Shares, Issued | 300,101,444 | 111,048,683 |
Common Stock, Shares, Outstanding | 300,101,444 | 111,048,683 |
Condensed Consolidated Interim4
Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Sales | $ 14,485 | $ 16,882 | $ 24,070 | $ 31,686 |
Cost of Sales | ||||
Direct mining costs | (8,130) | (13,367) | (21,146) | (24,929) |
Depreciation and depletion (Note 5) | (3,364) | (2,742) | (6,340) | (5,498) |
Income (loss) from mine operations | 2,991 | 773 | (3,416) | 1,259 |
General and administrative expenses (Note 10) | (879) | (712) | (2,133) | (2,128) |
Operating income (loss) | 2,112 | 61 | (5,549) | (869) |
Other income (expenses) | ||||
Gain (loss) on derivative instruments (Note 7) | (70) | 2,375 | 68 | 1,894 |
Finance expense (Note 12 (iii) and 12 (v)) | (1,441) | (1,250) | (2,974) | (2,297) |
Interest income | 37 | 37 | 72 | 63 |
Other expenses | (34) | (31) | (76) | (415) |
Total other income (expenses) | (1,508) | 1,131 | (2,910) | (755) |
Net and comprehensive income (loss) for the period | 604 | 1,192 | (8,459) | (1,624) |
Less: Net and comprehensive loss (income) attributable to the non-controlling interest for the period (Note 12 (iv)) | (1,236) | (230) | 2,410 | 159 |
Net and comprehensive income (loss) attributable to Golden Queen Mining Co Ltd. for the period | $ (632) | $ 962 | $ (6,049) | $ (1,465) |
Income (loss) per share - basic (Note 11) | $ 0 | $ 0.01 | $ (0.02) | $ (0.01) |
Income (loss) per share - diluted (Note 11) | $ 0 | $ 0.01 | $ (0.02) | $ (0.01) |
Weighted average number of common shares outstanding - basic | 300,101,444 | 111,148,683 | 244,772,735 | 112,360,179 |
Weighted average number of common shares outstanding - diluted | 300,101,444 | 111,148,683 | 244,772,735 | 112,360,179 |
Condensed Consolidated Interim5
Condensed Consolidated Interim Statements of Shareholders' Equity, Non-controlling Interest and Redeemable Portion of Non-controlling Interest - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Deficit Accumulated [Member] | Total Shareholders' Equity attributable to GQM Ltd [Member] | Non-controlling Interest [Member] | Redeemable Portion of Non-controlling Interest [Member] |
Balance at Dec. 31, 2016 | $ 66,711 | $ 71,067 | $ 43,652 | $ (87,335) | $ 27,384 | $ 39,327 | $ 26,220 |
Balance (in shares) at Dec. 31, 2016 | 111,048,683 | ||||||
Issuance of common shares (Note 9) | 59 | $ 59 | 0 | 0 | 59 | 0 | 0 |
Issuance of common shares (Note 9) (in shares) | 100,000 | ||||||
Stock-based compensation | 85 | $ 0 | 85 | 0 | 85 | 0 | 0 |
Net loss for the period | (1,560) | 0 | 0 | (1,465) | (1,465) | (95) | (64) |
Balance at Jun. 30, 2017 | 65,295 | $ 71,126 | 43,737 | (88,800) | 26,063 | 39,232 | 26,156 |
Balance (in shares) at Jun. 30, 2017 | 111,148,683 | ||||||
Balance at Dec. 31, 2017 | 62,800 | $ 71,126 | 43,853 | (88,500) | 26,479 | 36,321 | 24,214 |
Balance (in shares) at Dec. 31, 2017 | 111,148,683 | ||||||
Issuance of common shares (Note 9) | 24,368 | $ 24,368 | 0 | 0 | 24,368 | 0 | 0 |
Issuance of common shares (Note 9) (in shares) | 188,952,761 | ||||||
Capital contribution from non-controlling interest | 10,000 | $ 0 | 0 | 0 | 0 | 10,000 | 0 |
Stock-based compensation | 80 | 0 | 80 | 0 | 80 | 0 | 0 |
Net loss for the period | (7,495) | 0 | 0 | (6,049) | (6,049) | (1,446) | (964) |
Balance at Jun. 30, 2018 | $ 89,753 | $ 95,494 | $ 43,933 | $ (94,549) | $ 44,878 | $ 44,875 | $ 23,250 |
Balance (in shares) at Jun. 30, 2018 | 300,101,444 |
Condensed Consolidated Interim6
Condensed Consolidated Interim Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net loss for the period | $ (8,459) | $ (1,624) |
Adjustment to reconcile net loss to cash used in operating activities: | ||
Depreciation and depletion | 6,340 | 5,498 |
Amortization of debt discount and interest accrual | 1,124 | 740 |
Accretion expense | 83 | 62 |
Change in fair value of derivative liabilities (Note 7) | (68) | (1,894) |
Stock based compensation | 80 | 85 |
Unrealized foreign exchange | (37) | (7) |
Non-cash finder fees | 0 | 59 |
Changes in non-cash working capital items: | ||
Receivables | 0 | 12 |
Prepaid expenses & other current assets | (93) | 18 |
Inventory | (8,080) | (1,458) |
Accounts payable & accrued liabilities | (1,598) | 2,687 |
Interest payable | 0 | 1,272 |
Cash generated from (used in) operating activities | (10,708) | 5,450 |
Investment activities: | ||
Additions to property, plant, equipment and mineral interests | (2,394) | (9,479) |
Cash used in investing activities | (2,394) | (9,479) |
Financing activity: | ||
Issuance of common shares (Note 9) | 24,368 | 0 |
Repayment of credit facility | (3,000) | 0 |
Repayments of loan payable (Note 6) | (3,954) | (2,988) |
Repayments of note payable and accrued interest (Note 12 (ii)) | (6,711) | |
Capital contribution from non-controlling interest | 10,000 | |
Cash generated from (used in) financing activities | 20,703 | (2,988) |
Net change in cash and cash equivalents | 7,601 | (7,017) |
Cash and cash equivalents, beginning balance | 2,937 | 13,301 |
Cash and cash equivalents, ending balance | 10,538 | 6,284 |
Supplementary Disclosure of Cash Flow Information | ||
Cash paid during the period for: Interest on loan payable | 401 | 285 |
Non-cash financing and investing activities: | ||
Asset retirement costs charged to mineral property interests | 575 | 173 |
Mining equipment acquired through issuance of debt | 3,113 | 2,551 |
Mineral property expenditures included in accounts payable | 100 | 1,081 |
Non-cash finders' fee | 0 | 59 |
Non-cash amortization of discount and interest expense | 1,124 | 740 |
Interest payable converted to principal balance | $ 0 | $ 922 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | 1. Nature of Business Golden Queen Mining Co. Ltd. (“Golden Queen”, “GQM Ltd.” or the “Company”) is engaged in the operation of the Soledad Mountain Mine (“the Mine”), located in the Mojave Mining District, Kern County, California. The Company owns 50% of Golden Queen Mining Company, LLC (“GQM LLC”), the operator of the Mine. The remaining 50% is owned by Gauss LLC (“Gauss”). |
Basis of Presentation and Going
Basis of Presentation and Going Concern | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 2. Basis of Presentation and Going Concern These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”). The accounting policies followed in preparing these condensed consolidated interim financial statements are those used by the Company as set out in the audited consolidated financial statements for the year ended December 31, 2017 other than noted below. Certain information and note disclosures normally included for annual consolidated financial statements prepared in accordance with US GAAP have been omitted. These unaudited condensed consolidated interim financial statements should be read together with the audited consolidated financial statements of the Company for the year ended December 31, 2017. In the opinion of Management, all adjustments considered necessary (including reclassifications and normal recurring adjustments) to present fairly the financial position, results of operations and cash flows as at June 30, 2018 and for all periods presented, have been included in these unaudited condensed consolidated interim financial statements. The interim results are not necessarily indicative of results for the full year ending December 31, 2018, or future operating periods. The Company’s access to the net assets of GQM LLC is determined by the Board of Managers of GQM LLC. The Board of Managers is not controlled by the Company and therefore there is no guarantee that any access to the net assets of GQM LLC would be provided to the Company in order to continue as a going concern. The Board of Managers of GQM LLC determine when and if distributions from GQM LLC are made to the holders of its membership units at their sole discretion. The Company is required to pay the following amounts to the Clay Group on the following dates: $ 1.7 believes the Company will be able to meet its financial obligations for the 12 months period following the date of to reimburse the final May 21, 2019 respectively. The Company will need to receive cash distributions from GQM LLC to service its debt and such distributions are contingent on GQM LLC’s ability to generate positive cash flows. The Company reviewed the mine plan in light of the results for the six months ended June 30, 2018 and has determined it is unlikely it will receive sufficient distributions from GQM LLC during this fiscal year to service its debt in early 2019. This situation raises substantial doubt about the Company’s ability to continue as a going concern. Consequently, in the third quarter of 2018, discussions with the Clay Group to restructure the reimbursement of the last debt payment will be initiated. While the Company has been successful in re-negotiating the debt repayment terms with the Clay Group in the past, there can be no assurance that will be achieved going forward. The unaudited condensed consolidated interim financial statements do not reflect adjustments to the carrying values of the assets and liabilities, the reported revenues and expenses, and the balance sheet classifications used, that would be necessary if the company were unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material. |
Summary of Accounting Policies
Summary of Accounting Policies and Estimates and Judgements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 3. Summary of Accounting Policies and Estimates and Judgements The preparation of financial statements in conformity with US GAAP 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. Significant estimates and judgements have been made by Management in several areas including the accounting for the joint venture transaction and determination of the temporary and permanent non-controlling interest, the recoverability of mineral properties interests, royalty obligations, inventory valuation, asset retirement obligations, and derivative liability – warrants. Actual results could differ from those estimates. New Accounting Pronouncements Adopted (i) In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The amendments in ASU 2014-09 affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU superseded the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606, Revenue from Contracts with Customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The Company has completed its assessment of the impact of the new revenue standard on the Company's consolidated financial statements and disclosures. The Company has completed the review of all contracts and determined that the adoption of this guidance has no material impact on amounts and timing of revenue recognition. The Company's revenue arises from contracts with customers in which the delivery of doré is the single performance obligation under the customer contract. Product pricing is determined at the point when contract is created by reference to active and freely traded commodity markets, for example, the London Bullion Market for both gold and silver. The Company enters into the contracts with parties who have an ability and intention to meet its obligations with respect to consideration payment, thus ensuring the collectability of such consideration. These contracts are not modified and contain no variable consideration. (ii) In August 2016, ASC guidance was issued to amend the classification of certain cash receipts and cash payments in the statement of cash flows. The new guidance was effective for the Company’s fiscal year and interim periods beginning after December 15, 2017. The Company adopted the guidance effective January 1, 2018 and has retrospectively applied this guidance for all periods presented. There was no material impa ct from adoption of this guidanc Not Yet Adopted (iii) February 2016, FASB issued ASC 842 that requires lessees to recognize lease assets and corresponding lease liabilities on the balance sheet for all leases with terms of more than 12 months. The update, which supersedes existing lease guidance, will continue to classify leases as either finance or operating, with the classification determining the pattern of expense recognition in the income statement. The ASU will be effective for annual and interim periods beginning January 1, 2019 , with early adoption permitted, and is applicable on a modified retrospective basis with various optional practical expedients. The Company is currently assessing the impact of this standard |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory, Net [Abstract] | |
Inventory Disclosure [Text Block] | 4. Inventories Inventories consist primarily of production from the Company’s operation, in varying stages of the production process and supplies and spare parts, all of which are presented at the lower of cost or net realizable value. Inventories of the Company are comprised of: June 30, December 31, Stockpile inventory $ 2,431 $ 201 In-process inventory 11,808 6,495 Dore inventory 647 320 Supplies and spare parts 2,222 2,012 $ 17,108 $ 9,028 |
Property, Plant, Equipment and
Property, Plant, Equipment and Mineral Interests | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property, Plant, Equipment and Mineral Interests Property, plant and equipment and mineral interests, are depreciated and depleted using either the units-of-production or straight-line method over the shorter of the estimated useful life of the asset or the expected life of mine. Assets under construction in progress are recorded at cost and re-allocated to its corresponding category when they become available for use. Land Mineral property interest and claims Mine Machinery Buildings and Construction Interest Total Cost At December 31, 2016 $ 3,893 $ 4,241 $ 42,033 $ 60,201 $ 28,604 $ 543 $ 5,886 $ 145,401 Additions 98 817 354 17 - 19,597 - 20,883 Transfers - 222 8,625 11,239 - (20,086 ) - - Disposals (22 ) - (239 ) (1,391 ) (207 ) - - (1,859 ) At December 31, 2017 $ 3,969 $ 5,280 $ 50,773 $ 70,066 $ 28,397 $ 54 $ 5,886 $ 164,425 Additions 39 5 492 - - 5,346 - 5,882 Transfers - - - 4,454 - (4,454 ) - - Disposals - - - (6 ) - - - (6 ) At June 30, 2018 $ 4,008 $ 5,285 $ 51,265 $ 74,514 $ 28,397 $ 946 $ 5,886 $ 170,301 Accumulated depreciation and depletion At December 31, 2016 $ - $ 67 $ 971 $ 7,129 $ 2,679 $ - $ 5 $ 10,851 Additions - 261 2,444 6,489 2,358 - 466 12,018 Disposals - - - (265 ) (27 ) - - (292 ) At December 31, 2017 $ - $ 328 $ 3,415 $ 13,353 $ 5,010 $ - $ 471 $ 22,577 Additions - 106 1,039 3,792 1,177 - 203 6,317 Disposals - - - - - - - - At June 30, 2018 $ - $ 434 $ 4,454 $ 17,145 $ 6,187 $ - $ 674 $ 28,894 Carrying values At December 31, 2017 $ 3,969 $ 4,952 $ 47,358 $ 56,713 $ 23,387 $ 54 $ 5,415 $ 141,848 At June 30, 2018 $ 4,008 $ 4,851 $ 46,811 $ 57,369 $ 22,210 $ 946 $ 5,212 $ 141,407 |
Loan Payable
Loan Payable | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 6. Loan Payable As at June 30, 2018 and December 31, 2017, equipment financing balances are as follows: June 30, December 31, Balance, beginning of the period $ 17,243 $ 15,150 Additions 3,751 10,727 Down payments and taxes (638 ) (1,839 ) Settlements - (603 ) Principal repayments (3,954 ) (6,192 ) Balance, end of the period $ 16,402 $ 17,243 Current portion $ 8,096 $ 7,629 Non-current portion $ 8,306 $ 9,614 The terms of the equipment financing agreements are as follows: June 30, December 31, Total acquisition costs $ 39,443 $ 35,692 Interest rates 0.00% ~ 4.50% 0.00% ~ 4.50% Monthly payments $ 5 ~ 74 $ 5 ~ 74 Average remaining life (years) 2.41 2.13 For the six months ended June 30, 2018, the Company made total down payments of $638 (December 31, 2017 – The following table outlines the principal payments to be made for each of the remaining years: Years Principal Payments 2019 $ 6,203 2020 3,619 2021 1,998 2022 534 Total $ 12,354 |
Derivative Liabilities
Derivative Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value [Text Block] | 7. Derivative Liabilities Share Purchase Warrants – Clay loans (Related Party (see Note 12 (ii)) On June 8, 2015, the Company issued 10,000,000 share purchase warrants to the Clay Group (the “June 2015 Warrants”) in connection with the June 2015 Loan. On February 22, 2018, the Company completed a rights offering at a share price lower than the original exercise price of $0.95 of the June 2015 Warrants. As per an anti-dilution provision included in the June 2015 Loan agreement, the exercise price of the June 2015 Warrants was revised to $0.7831 on the rights offering completion date. The expiry date of June 8, 2020 of the June 2015 Warrants remains unchanged. On November 18, 2016, the Company issued 8,000,000 share purchase warrants to the Clay Group (the “November 2016 Warrants”) in connection with the November 2016 Loan. On February 22, 2018, the Company completed a rights offering at a share price lower than the original exercise price of $0.85 of the November 2016 Warrants. As per an anti-dilution provision included in the November 2016 Loan agreement, the exercise price of the November 2016 Warrants was revised to $0.6650 on the rights offering completion date. The expiry date of November 18, 2021 of the November 2016 Warrants remains unchanged. The share purchase warrants meet the definition of a derivative liability instrument as the exercise price is not a fixed price as described above. Therefore, the settlement feature does not meet the “fixed-for-fixed” criteria outlined in ASC 815-40-15. The fair value of the derivative liabilities related to the Clay Group share purchase warrants as at June 30, 2018 was $372 (December 31, 2017 – Warrants related to June 2015 Loan June 30, December 31, Risk-free interest rate 1.91 % 1.73 % Expected life of derivative liability 1.94 2.44 years Expected volatility 69.67 % 78.59 % Dividend rate 0.00 % 0.00 % Warrants related to November 2016 Loan June 30, December 31, Risk-free interest rate 1.98 % 1.73 % Expected life of derivative liability 3.40 years 3.89 years Expected volatility 74.75 % 75.69 % Dividend rate 0.00 % 0.00 % The change in the derivative share purchase warrants is as follows: June 30, December 31, Balance, beginning of the period $ 439 $ 5,458 Change in fair value (67 ) (5,019 ) Balance, end of the period $ 372 $ 439 Share Purchase Warrants On July 25, 2016, the Company issued 6,317,700 share purchase warrants with an exercise price of C$2.00 and an expiry date of July 25, 2019. As at June 30, 2018, the Company re-measured the share purchase warrants and determined the fair value of the derivative liability to be $1 (December 31, 2017 - $2). |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | 8. Asset Retirement Obligations Reclamation Financial Assurance The Company is required to provide the Bureau of Land Management, the State Office of Mine Reclamation and Kern County with a revised reclamation cost estimate annually. The financial assurance is adjusted once the cost estimate is approved. This estimate, once approved by state and county authorities, forms the basis of reclamation financial assurance. The reclamation assurance provided as at June 30, 2018 was $1,749 (December 31, 2017 – The Company is also required to provide financial assurance with the Lahontan Regional Water Quality Control Board (the “Regional Board”) for closure and reclamation costs related to the lined impoundments, which are defined as the Stage 1 and Stage 2 heap leach pads, the overflow pond, and the solution collection channel. The reclamation financial assurance estimate as at June 30, 2018 is $2,450 (December 31, 2017 – In addition to the above, the Company is required to obtain and maintain financial assurance for initiating and completing corrective action and remediation of a reasonably foreseeable release from the Project’s waste management units as required by the Regional Board. The reclamation financial assurance estimate as at June 30, 2018 is $278 (December 31, 2017 – The Company entered into $4,921 (2017 – – Asset Retirement Obligation The total asset retirement obligation as at June 30, 2018, was $2,413 (December 31, 2017 – The Company estimated its asset retirement obligations based on its understanding of the requirements to reclaim and remediate its property based on its activities to date. As at June 30, 2018, the Company estimates the cash outflow related to these reclamation activities will be incurred in 2028. Reclamation provisions are measured at the expected value of future cash flows discounted to their present value using a discount rate based on a credit adjusted risk-free interest rate of 8.34% and an inflation rate of 2.41%. The following is a summary of asset retirement obligations: June 30, December 31, 2017 Balance, beginning of the period $ 1,838 $ 1,366 Accretion 83 126 Changes in cash flow estimates 492 346 Balance, end of the period $ 2,413 $ 1,838 |
Share Capital
Share Capital | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 9. Share Capital The Company’s common shares outstanding are no par value, voting shares with no preferences or rights attached to them. Common shares On January 17, 2017, the Company issued 100,000 shares for a total of $59 as finder fees which were recognized in general and administrative expenses in connection with the declaration of commercial production in December 2016. On February 22, 2018, the Company closed a rights offering and issued 188,952,761 shares for total gross proceeds of $25,036. The Company paid associated fees of $668 which were classified as share issue costs. Stock options The Company’s current stock option plan (the “Plan”) was adopted by the Company in 2013 and approved by shareholders of the Company in 2013. The Plan provides a fixed number of 7,200,000 common shares of the Company that may be issued pursuant to the grant of stock options. The exercise price of stock options granted under the Plan shall be determined by the Company’s Board of Directors (the “Board”) but shall not be less than the volume-weighted, average trading price of the Company’s shares on the Toronto Stock Exchange (“TSX”) for the five (5) trading days immediately prior to the date of the grant. The expiry date of a stock option shall be the date so fixed by the Board subject to a maximum term of five (5) years. The Company has elected to use the Black-Scholes option pricing model to determine the fair value of stock options granted. The compensation expense is amortized on a straight-line basis over the requisite service period, which approximates the vesting period. The following is a summary of stock option activity during the six months ended June 30, 2018: Shares Weighted Average Exercise Price per Share Options outstanding, December 31, 2016 1,555,000 $ 0.85 Options granted 1,605,001 $ 0.38 Options forfeited (166,667 ) $ 0.64 Options expired (393,333 ) $ 1.13 Options outstanding, December 31, 2017 2,600,001 $ 0.54 Options forfeited (75,000 ) $ 0.29 Options expired (50,000 ) $ 1.16 Options outstanding, June 30, 2018 2,475,001 $ 0.53 On March 14, 2017, the former CFO of the Company resigned. 146,667 stock options were forfeited on this date as they did not meet the vesting conditions. Accordingly, the share-based compensation associated with the unvested stock options was reversed. The expiry date of 393,333 stock options that had vested was modified to June 14, 2017 pursuant to the terms of the employment agreement. These stock options were not exercised, thus expired during the year ended December 31, 2017. On March 20, 2017, the Company granted 400,002 options to the Company’s new Chief Financial Officer (“CFO”) which are exercisable at a price of $0.65 for a period of five years from the date of grant. 133,334 options vested on March 20, 2018, 133,334 options vest on March 20, 2019 and 133,334 options vest on March 20, 2020. The fair value of stock options granted as above was calculated using the following weighted average assumptions: 2017 Expected life (years) 5.00 Interest rate 1.18% ~ 1.70 % Volatility 77.29% ~ 79.17 % Dividend yield 0.00 % During the three and six months ended June 30, 2018, the Company recognized $35 and $80 (the three and six months ended June 30, 2017 - $52 and $85) in stock-based compensation relating to employee stock options that were issued and/or had vesting terms. The following table summarizes information about stock options outstanding and exercisable as at June 30, 2018: Expiry Number Number Remaining Exercise September 3, 2018 150,000 150,000 0.18 $ 1.59 September 8, 2020 430,000 430,000 2.19 $ 0.58 November 30, 2021 365,000 121,666 3.42 $ 0.66 March 20, 2022 400,002 133,334 3.72 $ 0.65 October 20, 2022 1,129,999 - 4.31 $ 0.29 Balance, June 30, 2018 2,475,001 835,000 3.47 As at June 30, 2018, the aggregate intrinsic value of the outstanding exercisable options was $nil (December 31, 2017 – Warrants As at June 30, 2018, 24,317,700 warrants were outstanding (December 31, 2017 – 24,317,700). The following table summarizes information about share purchase warrants outstanding: Expiry Number Remaining Exercise June 8, 2020 10,000,000 2.19 $ 0.7831 July 25, 2019 (1) 6,317,700 1.32 C $ 2.0000 November 18, 2021 8,000,000 3.64 $ 0.6650 Balance, June 30, 2018 24,317,700 2.44 (1) Non-tradable share purchase warrants. |
General and Administrative Expe
General and Administrative Expenses | 6 Months Ended |
Jun. 30, 2018 | |
General and Administrative Expense [Abstract] | |
General and Administrative Expenses [Text Block] | 10. General and Administrative Expenses General and administrative expenses are incurred to support the administration of the business that are not directly related to production. Significant components of general and administrative expenses are comprised of the following: Three Months Three Months Six Months Six Months 2018 2017 2018 2017 Audit, legal and professional fees $ 169 $ 108 $ 409 $ 396 Salaries and benefits and director fees 180 140 683 700 Regulatory fees and licenses 46 17 125 70 Insurance 144 114 283 247 Corporate administration 340 333 633 715 $ 879 $ 712 $ 2,133 $ 2,128 |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 11. Loss Per Share Three Months Three Months Six Months Six Months 2018 2017 2018 2017 Numerator: Net income (loss) attributable to the shareholders of the Company - numerator for basic and diluted $ (632 ) $ 962 $ (6,049 ) $ (1,465 ) Denominator: Weighted average number of common 300,101,444 111,148,683 244,772,735 112,360,179 Income (loss) per share – basic and diluted $ (0.00 ) $ 0.01 $ (0.02 ) $ (0.01 ) Weighted average number of shares for the three and six months ended June 30, 2018 excludes 2,475,001 options (December 31, 2017 – |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 12. Related Party Transactions Except as noted elsewhere in these consolidated financial statements, related party transactions are disclosed as follows: (i) Compensation of Key Management Personnel, Transactions with Related Parties and Related Party Balances For the three and six months ended June 30, 2018, the Company recognized $104 and $299 (for the three and six months ended June 30, 2017 – $ As at June 30, 2018, $nil (December 31, 2017 – As at June 30, 2018, $28 (December 31, 2017 – (ii) Note Payable On November 18, 2016, the Company entered into a loan with the Clay Group for $31,000 (the “November 2016 Loan”), due on May 21, 2019 with an annual interest rate of 8%, payable quarterly. In connection with the November 2016 Loan the Company issued 8,000,000 common share purchase warrants exercisable for a period of five years expiring November 21, 2021. See Note 7. On November 10, 2017, the Company and the Clay Group agreed to amend the November 2016 Loan by reducing the 2018 quarterly and 2019 Q1 principal payments from $2,500 to $1,000, adding the reduction of such payments pro-rata to the remaining 2019 payments, and increasing the annual interest rate from 8% to 10% effective January 1, 2018 (the “November 2017 Loan”). This amendment was accounted for as a debt modification. The following table summarizes activity on the notes payable: June 30, December 31, Balance, beginning of the period $ 30,099 $ 26,347 Interest payable transferred to principal balance - 2,212 Accretion of discount on loans 994 1,940 Capitalized financing and legal fees - (400 ) Accretion of capitalized financing and legal fees 130 - Repayment of loans and interest (6,711 ) - Balance, end of the period $ 24,512 $ 30,099 Current portion $ 24,512 $ 7,712 Non-current portion $ - $ 22,387 (iii) Amortization of Discounts and Interest Expense The following table summarizes the amortization of discounts and interest on loan: Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Accretion of the Nov 2017 Loan discount $ 504 $ 454 $ 994 $ 740 Accretion of capitalized financing and legal fees 66 - 130 - Interest expense related to the Nov 2017 Loan 695 646 1,409 1,272 Closing and commitment fees related to the Credit Facility 10 - 40 - Interest expense related to Komatsu financial loans (1) 166 150 401 285 Accretion of discount and interest on loan $ 1,441 $ 1,250 $ 2,974 $ 2,297 (1) Komatsu is not a related party and has only been included in the above table to reconcile the total interest expense incurred for the period … to the amounts capitalized and expensed. (iv) Joint Venture Transaction The Company has presented Gauss’ ownership in GQM LLC as a non-controlling interest amount on the balance sheet within the equity section. However, there are terms in the agreement that provide for the exit from the investment in GQM LLC for an initial member whose interest in GQM LLC becomes less than 20%. If a member becomes less than a 20% interest holder, its remaining interest will (ultimately) be terminated through one of 3 events at the non-diluted member’s option: a. Through conversion to a net smelter royalty (“NSR”); b. Through a buy-out (at fair value) by the non-diluted member; or c. Through a sale process by which the diluted member’s interest is sold. The net assets of GQM LLC as at June 30, 2018 and December 31, 2017 are as follows: June 30, December 31, Assets, GQM LLC $ 160,379 $ 149,095 Liabilities, GQM LLC (24,130 ) (28,024 ) Net assets, GQM LLC $ 136,249 $ 121,071 Included in the assets above, is $5,930 (December 31, 2017 – Non-Controlling Interest The carrying value of the non-controlling interest is adjusted for net income and loss, distributions and contributions pursuant to ASC 810-10 based on the same percentage allocation used to calculate the initial book value of temporary equity. Three Months Three Months Six Months Six Months 2018 2017 2018 2017 Net and comprehensive income (loss) in GQM LLC $ 2,475 $ 462 $ (4,819 ) $ (317 ) Non-controlling interest percentage 50 % 50 % 50 % 50 % Net and comprehensive income (loss) attributable to non-controlling interest $ 1,238 $ 230 $ (2,410 ) $ (159 ) Net and comprehensive loss) attributable to permanent non-controlling interest $ 743 $ 138 $ (1,446 ) $ (95 ) Net and comprehensive loss) attributable to temporary non-controlling interest $ 495 $ 92 $ (964 ) $ (64 ) Permanent Non- Controlling Temporary Non- Controlling Carrying value of non-controlling interest, December 31, 2017 $ 36,321 $ 24,214 Capital contribution 10,000 - Net and comprehensive loss for the period (1,446 ) (964 ) Carrying value of non-controlling interest, June 30, 2018 $ 44,875 $ 23,250 (v) Credit Facility On May 23, 2017, GQM LLC entered into a $5,000 one-year revolving credit agreement (the “Credit Facility”) in which Gauss Holdings LLC and Auvergne, LLC agreed to extend credit in the form of loans to GQM LLC. The Credit Facility commenced on July 1, 2017, bears interest at a rate of 12% per annum and is subject to a commitment fee of 1% per annum. For the three and six months ended June 30, 2018, GQM LLC paid commitment fees of $30 (2017 – $nil). The balance of the Credit Facility was $3,000 as at December 31, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 13. Commitments and Contingencies Royalties The Company has acquired a number of mineral property interests outright. It has acquired exclusive rights to explore, develop and mine other portions of the Mine under various mining lease agreements with landowners. Royalty amounts due to each landholder over the life of the Mine vary with each property. Compliance with Environmental Regulations The Company’s exploration and development activities are subject to laws and regulations controlling not only the exploration and mining of mineral properties, but also the effect of such activities on the environment. Compliance with such laws and regulations may necessitate additional capital outlays or affect the economics of a mine, and cause changes or delays in the Company’s activities. Corporate Guaranties The Company has provided corporate guaranties for two of GQM LLC’s mining drill loans. The Company has also provided a corporate guaranty for GQM LLC’s surety bonds. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 14. Financial Instruments Fair Value Measurements All financial assets and financial liabilities are recorded at fair value on initial recognition. Transaction costs are expensed when they are incurred, unless they are directly attributable to the acquisition of qualifying assets, in which case they are added to the costs of those assets until such time as the assets are substantially ready for their intended use or sale. The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). June 30, 2018 Total Level 1 Level 2 Level 3 Liabilities: Share purchase warrants – Related Party (see Note 7) $ 372 $ - $ 372 $ - Share purchase warrants – (see Note 7) 1 - 1 - $ 373 $ - $ 373 $ - December 31, 2017 Total Level 1 Level 2 Level 3 Liabilities: Share purchase warrants – Related Party ( Note 7) $ 439 $ - $ 439 $ - Share purchase warrants – ( Note 7) 2 - 2 - $ 441 $ - $ 441 $ - Under fair value accounting, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The fair value measurement of the financial instruments above use observable inputs in option price models such as the binomial and the Black-Scholes valuation models. Credit Risk Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. To mitigate exposure to credit risk on financial assets the Company has established policies to ensure liquidity of funds and ensure counterparties demonstrate minimum acceptable credit worthiness. The Company maintains its US Dollar and Canadian Dollar cash in bank accounts with major financial institutions with high credit standings. Cash deposits held in the United States are insured by the Federal Deposit Insurance Corporation (“FDIC”) for up to $250 and Canadian Dollar cash deposits held in Canada are insured by the Canada Deposit Insurance Corporation (“CDIC”) for up to C$100. Certain United States and Canadian bank accounts held by the Company exceed these federally insured limits or are uninsured as they relate to US Dollar deposits held in Canadian financial institutions. As at June 30, 2018, the Company’s cash balances held in United States and Canadian financial institutions include $10,537, which are not fully insured by the FDIC or CDIC. The Company has not experienced any losses on such accounts and management believes that using major financial institutions with high credit ratings mitigates the credit risk in cash. Interest Rate Risk The Company holds approximately 55% of its cash in bank deposit accounts with a single major financial institution. The interest rates received on these balances may fluctuate with changes in economic conditions. Based on the average cash balances during the three and six months ended June 30, 2018, a 1% decrease in interest rates would have reduced the interest income for the three and six months ended June 30, 2018, by an immaterial amount. Foreign Currency Exchange Risk Certain purchases of corporate overhead items are denominated in Canadian Dollar. As a result, currency exchange fluctuations may impact the costs of operations. Specifically, the appreciation of the Canadian Dollar against the US Dollar may result in an increase in the Canadian operating expenses in US dollar terms. As at June 30, 2018, the Company maintained the majority of its cash balance in US Dollars. The Company currently does not engage in any currency hedging activities. |
Summary of Accounting Policie21
Summary of Accounting Policies and Estimates and Judgements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | The preparation of financial statements in conformity with US GAAP 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. Significant estimates and judgements have been made by Management in several areas including the accounting for the joint venture transaction and determination of the temporary and permanent non-controlling interest, the recoverability of mineral properties interests, royalty obligations, inventory valuation, asset retirement obligations, and derivative liability – warrants. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Adopted (i) In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The amendments in ASU 2014-09 affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU superseded the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606, Revenue from Contracts with Customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The Company has completed its assessment of the impact of the new revenue standard on the Company's consolidated financial statements and disclosures. The Company has completed the review of all contracts and determined that the adoption of this guidance has no material impact on amounts and timing of revenue recognition. The Company's revenue arises from contracts with customers in which the delivery of doré is the single performance obligation under the customer contract. Product pricing is determined at the point when contract is created by reference to active and freely traded commodity markets, for example, the London Bullion Market for both gold and silver. The Company enters into the contracts with parties who have an ability and intention to meet its obligations with respect to consideration payment, thus ensuring the collectability of such consideration. These contracts are not modified and contain no variable consideration. (ii) In August 2016, ASC guidance was issued to amend the classification of certain cash receipts and cash payments in the statement of cash flows. The new guidance was effective for the Company’s fiscal year and interim periods beginning after December 15, 2017. The Company adopted the guidance effective January 1, 2018 and has retrospectively applied this guidance for all periods presented. There was no material impa ct from adoption of this guidanc Not Yet Adopted (iii) February 2016, FASB issued ASC 842 that requires lessees to recognize lease assets and corresponding lease liabilities on the balance sheet for all leases with terms of more than 12 months. The update, which supersedes existing lease guidance, will continue to classify leases as either finance or operating, with the classification determining the pattern of expense recognition in the income statement. The ASU will be effective for annual and interim periods beginning January 1, 2019 , with early adoption permitted, and is applicable on a modified retrospective basis with various optional practical expedients. The Company is currently assessing the impact of this standard |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories of the Company are comprised of: June 30, December 31, Stockpile inventory $ 2,431 $ 201 In-process inventory 11,808 6,495 Dore inventory 647 320 Supplies and spare parts 2,222 2,012 $ 17,108 $ 9,028 |
Property, Plant, Equipment an23
Property, Plant, Equipment and Mineral Interests (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Land Mineral property interest and claims Mine Machinery Buildings and Construction Interest Total Cost At December 31, 2016 $ 3,893 $ 4,241 $ 42,033 $ 60,201 $ 28,604 $ 543 $ 5,886 $ 145,401 Additions 98 817 354 17 - 19,597 - 20,883 Transfers - 222 8,625 11,239 - (20,086 ) - - Disposals (22 ) - (239 ) (1,391 ) (207 ) - - (1,859 ) At December 31, 2017 $ 3,969 $ 5,280 $ 50,773 $ 70,066 $ 28,397 $ 54 $ 5,886 $ 164,425 Additions 39 5 492 - - 5,346 - 5,882 Transfers - - - 4,454 - (4,454 ) - - Disposals - - - (6 ) - - - (6 ) At June 30, 2018 $ 4,008 $ 5,285 $ 51,265 $ 74,514 $ 28,397 $ 946 $ 5,886 $ 170,301 Accumulated depreciation and depletion At December 31, 2016 $ - $ 67 $ 971 $ 7,129 $ 2,679 $ - $ 5 $ 10,851 Additions - 261 2,444 6,489 2,358 - 466 12,018 Disposals - - - (265 ) (27 ) - - (292 ) At December 31, 2017 $ - $ 328 $ 3,415 $ 13,353 $ 5,010 $ - $ 471 $ 22,577 Additions - 106 1,039 3,792 1,177 - 203 6,317 Disposals - - - - - - - - At June 30, 2018 $ - $ 434 $ 4,454 $ 17,145 $ 6,187 $ - $ 674 $ 28,894 Carrying values At December 31, 2017 $ 3,969 $ 4,952 $ 47,358 $ 56,713 $ 23,387 $ 54 $ 5,415 $ 141,848 At June 30, 2018 $ 4,008 $ 4,851 $ 46,811 $ 57,369 $ 22,210 $ 946 $ 5,212 $ 141,407 |
Loan Payable (Tables)
Loan Payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Loans Payable [Table Text Block] | As at June 30, 2018 and December 31, 2017, equipment financing balances are as follows: June 30, December 31, Balance, beginning of the period $ 17,243 $ 15,150 Additions 3,751 10,727 Down payments and taxes (638 ) (1,839 ) Settlements - (603 ) Principal repayments (3,954 ) (6,192 ) Balance, end of the period $ 16,402 $ 17,243 Current portion $ 8,096 $ 7,629 Non-current portion $ 8,306 $ 9,614 |
Schedule of Long-term Debt Instruments [Table Text Block] | The terms of the equipment financing agreements are as follows: June 30, December 31, Total acquisition costs $ 39,443 $ 35,692 Interest rates 0.00% ~ 4.50% 0.00% ~ 4.50% Monthly payments $ 5 ~ 74 $ 5 ~ 74 Average remaining life (years) 2.41 2.13 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table outlines the principal payments to be made for each of the remaining years: Years Principal Payments 2019 $ 6,203 2020 3,619 2021 1,998 2022 534 Total $ 12,354 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | The derivative liabilities were calculated using the binomial and the Black-Scholes pricing valuation models with the following assumptions: Warrants related to June 2015 Loan June 30, December 31, Risk-free interest rate 1.91 % 1.73 % Expected life of derivative liability 1.94 2.44 years Expected volatility 69.67 % 78.59 % Dividend rate 0.00 % 0.00 % Warrants related to November 2016 Loan June 30, December 31, Risk-free interest rate 1.98 % 1.73 % Expected life of derivative liability 3.40 years 3.89 years Expected volatility 74.75 % 75.69 % Dividend rate 0.00 % 0.00 % |
Schedule of Derivative Liability for Share Purchase Warrants [Table Text Block] | The change in the derivative share purchase warrants is as follows: June 30, December 31, Balance, beginning of the period $ 439 $ 5,458 Change in fair value (67 ) (5,019 ) Balance, end of the period $ 372 $ 439 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | The following is a summary of asset retirement obligations: June 30, December 31, 2017 Balance, beginning of the period $ 1,838 $ 1,366 Accretion 83 126 Changes in cash flow estimates 492 346 Balance, end of the period $ 2,413 $ 1,838 |
Share Capital (Tables)
Share Capital (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following is a summary of stock option activity during the six months ended June 30, 2018: Shares Weighted Average Exercise Price per Share Options outstanding, December 31, 2016 1,555,000 $ 0.85 Options granted 1,605,001 $ 0.38 Options forfeited (166,667 ) $ 0.64 Options expired (393,333 ) $ 1.13 Options outstanding, December 31, 2017 2,600,001 $ 0.54 Options forfeited (75,000 ) $ 0.29 Options expired (50,000 ) $ 1.16 Options outstanding, June 30, 2018 2,475,001 $ 0.53 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The fair value of stock options granted as above was calculated using the following weighted average assumptions: 2017 Expected life (years) 5.00 Interest rate 1.18% ~ 1.70 % Volatility 77.29% ~ 79.17 % Dividend yield 0.00 % |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | The following table summarizes information about stock options outstanding and exercisable as at June 30, 2018: Expiry Number Number Remaining Exercise September 3, 2018 150,000 150,000 0.18 $ 1.59 September 8, 2020 430,000 430,000 2.19 $ 0.58 November 30, 2021 365,000 121,666 3.42 $ 0.66 March 20, 2022 400,002 133,334 3.72 $ 0.65 October 20, 2022 1,129,999 - 4.31 $ 0.29 Balance, June 30, 2018 2,475,001 835,000 3.47 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Outstanding and Exercisable [Table Text Block] | The following table summarizes information about share purchase warrants outstanding: Expiry Number Remaining Exercise June 8, 2020 10,000,000 2.19 $ 0.7831 July 25, 2019 (1) 6,317,700 1.32 C $ 2.0000 November 18, 2021 8,000,000 3.64 $ 0.6650 Balance, June 30, 2018 24,317,700 2.44 (1) Non-tradable share purchase warrants. |
General and Administrative Ex28
General and Administrative Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
General and Administrative Expense [Abstract] | |
General and Administrative Expense [Table Text Block] | Significant components of general and administrative expenses are comprised of the following: Three Months Three Months Six Months Six Months 2018 2017 2018 2017 Audit, legal and professional fees $ 169 $ 108 $ 409 $ 396 Salaries and benefits and director fees 180 140 683 700 Regulatory fees and licenses 46 17 125 70 Insurance 144 114 283 247 Corporate administration 340 333 633 715 $ 879 $ 712 $ 2,133 $ 2,128 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Three Months Six Months Six Months 2018 2017 2018 2017 Numerator: Net income (loss) attributable to the shareholders of the Company - numerator for basic and diluted $ (632 ) $ 962 $ (6,049 ) $ (1,465 ) Denominator: Weighted average number of common 300,101,444 111,148,683 244,772,735 112,360,179 Income (loss) per share – basic and diluted $ (0.00 ) $ 0.01 $ (0.02 ) $ (0.01 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transaction [Line Items] | |
Schedule of Debt [Table Text Block] | The following table summarizes activity on the notes payable: June 30, December 31, Balance, beginning of the period $ 30,099 $ 26,347 Interest payable transferred to principal balance - 2,212 Accretion of discount on loans 994 1,940 Capitalized financing and legal fees - (400 ) Accretion of capitalized financing and legal fees 130 - Repayment of loans and interest (6,711 ) - Balance, end of the period $ 24,512 $ 30,099 Current portion $ 24,512 $ 7,712 Non-current portion $ - $ 22,387 |
Schedule Of Amortization Of Discounts And Interest On Loans And Convertible Debentures [Table Text Block] | The following table summarizes the amortization of discounts and interest on loan: Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Accretion of the Nov 2017 Loan discount $ 504 $ 454 $ 994 $ 740 Accretion of capitalized financing and legal fees 66 - 130 - Interest expense related to the Nov 2017 Loan 695 646 1,409 1,272 Closing and commitment fees related to the Credit Facility 10 - 40 - Interest expense related to Komatsu financial loans (1) 166 150 401 285 Accretion of discount and interest on loan $ 1,441 $ 1,250 $ 2,974 $ 2,297 (1) Komatsu is not a related party and has only been included in the above table to reconcile the total interest expense incurred for the period … to the amounts capitalized and expensed. |
Schedule of Variable Interest Entities [Table Text Block] | The net assets of GQM LLC as at June 30, 2018 and December 31, 2017 are as follows: June 30, 2018 December 31, 2017 Assets, GQM LLC $ 160,379 $ 149,095 Liabilities, GQM LLC (24,130 ) (28,024 ) Net assets, GQM LLC $ 136,249 $ 121,071 |
Schedule of Comprehensive Income Net of Tax Attributable To Noncontrolling Interest [Table Text Block] | The carrying value of the non-controlling interest is adjusted for net income and loss, distributions and contributions pursuant to ASC 810-10 based on the same percentage allocation used to calculate the initial book value of temporary equity. Three Months Three Months Six Months Six Months 2018 2017 2018 2017 Net and comprehensive income (loss) in GQM LLC $ 2,475 $ 462 $ (4,819 ) $ (317 ) Non-controlling interest percentage 50 % 50 % 50 % 50 % Net and comprehensive income (loss) attributable to non-controlling interest $ 1,238 $ 230 $ (2,410 ) $ (159 ) Net and comprehensive loss) attributable to permanent non-controlling interest $ 743 $ 138 $ (1,446 ) $ (95 ) Net and comprehensive loss) attributable to temporary non-controlling interest $ 495 $ 92 $ (964 ) $ (64 ) |
Schedule Of Non-controlling Interest [Table Text Block] | Permanent Non- Controlling Temporary Non- Controlling Carrying value of non-controlling interest, December 31, 2017 $ 36,321 $ 24,214 Capital contribution 10,000 - Net and comprehensive loss for the period (1,446 ) (964 ) Carrying value of non-controlling interest, June 30, 2018 $ 44,875 $ 23,250 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). June 30, 2018 Total Level 1 Level 2 Level 3 Liabilities: Share purchase warrants – Related Party (see Note 7) $ 372 $ - $ 372 $ - Share purchase warrants – (see Note 7) 1 - 1 - $ 373 $ - $ 373 $ - December 31, 2017 Total Level 1 Level 2 Level 3 Liabilities: Share purchase warrants – Related Party ( Note 7) $ 439 $ - $ 439 $ - Share purchase warrants – ( Note 7) 2 - 2 - $ 441 $ - $ 441 $ - |
Nature of Business (Details Tex
Nature of Business (Details Textual) | Jun. 30, 2018 |
Gauss LLC [Member] | |
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% |
Golden Queen Mining Company, LLC [Member] | |
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% |
Basis of Presentation and Goi33
Basis of Presentation and Going Concern (Details Textual) - USD ($) $ in Thousands | Apr. 01, 2019 | Jan. 01, 2019 | Oct. 01, 2018 | May 21, 2019 | Jun. 29, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Instrument, Periodic Payment | $ 1,700 | ||||||
Net Cash Provided by (Used in) Operating Activities | $ (10,708) | $ 5,450 | |||||
Reimbursement of Payments | $ 3,900 | $ 21,700 | |||||
Scenario, Forecast [Member] | |||||||
Debt Instrument, Periodic Payment | $ 3,900 | $ 1,700 | $ 1,700 | $ 21,700 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Stockpile inventory | $ 2,431 | $ 201 |
In-process inventory | 11,808 | 6,495 |
Dore inventory | 647 | 320 |
Supplies and spare parts | 2,222 | 2,012 |
Inventory, Net | $ 17,108 | $ 9,028 |
Property, Plant, Equipment an35
Property, Plant, Equipment and Mineral Interests (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Movement in Property, Plant and Equipment: | ||
Begining balance | $ 164,425 | $ 145,401 |
Additions | 5,882 | 20,883 |
Transfers | 0 | 0 |
Disposals | (6) | (1,859) |
Ending balance | 170,301 | 164,425 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment: | ||
Begining balance | 22,577 | 10,851 |
Additions | 6,317 | 12,018 |
Disposals | 0 | (292) |
Ending balance | 28,894 | 22,577 |
Property, Plant and Equipment, Net, by Type: | ||
Property, Plant and Equipment, Net | 141,407 | 141,848 |
Land [Member] | ||
Movement in Property, Plant and Equipment: | ||
Begining balance | 3,969 | 3,893 |
Additions | 39 | 98 |
Transfers | 0 | 0 |
Disposals | 0 | (22) |
Ending balance | 4,008 | 3,969 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment: | ||
Begining balance | 0 | 0 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Ending balance | 0 | 0 |
Property, Plant and Equipment, Net, by Type: | ||
Property, Plant and Equipment, Net | 4,008 | 3,969 |
Mineral property interest and claims [Member] | ||
Movement in Property, Plant and Equipment: | ||
Begining balance | 5,280 | 4,241 |
Additions | 5 | 817 |
Transfers | 0 | 222 |
Disposals | 0 | |
Ending balance | 5,285 | 5,280 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment: | ||
Begining balance | 328 | 67 |
Additions | 106 | 261 |
Disposals | 0 | 0 |
Ending balance | 434 | 328 |
Property, Plant and Equipment, Net, by Type: | ||
Property, Plant and Equipment, Net | 4,851 | 4,952 |
Mine Development [Member] | ||
Movement in Property, Plant and Equipment: | ||
Begining balance | 50,773 | 42,033 |
Additions | 492 | 354 |
Transfers | 0 | 8,625 |
Disposals | (239) | |
Ending balance | 51,265 | 50,773 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment: | ||
Begining balance | 3,415 | 971 |
Additions | 1,039 | 2,444 |
Disposals | 0 | 0 |
Ending balance | 4,454 | 3,415 |
Property, Plant and Equipment, Net, by Type: | ||
Property, Plant and Equipment, Net | 46,811 | 47,358 |
Machinery and Equipment [Member] | ||
Movement in Property, Plant and Equipment: | ||
Begining balance | 70,066 | 60,201 |
Additions | 0 | 17 |
Transfers | 4,454 | 11,239 |
Disposals | (6) | (1,391) |
Ending balance | 74,514 | 70,066 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment: | ||
Begining balance | 13,353 | 7,129 |
Additions | 3,792 | 6,489 |
Disposals | 0 | (265) |
Ending balance | 17,145 | 13,353 |
Property, Plant and Equipment, Net, by Type: | ||
Property, Plant and Equipment, Net | 57,369 | 56,713 |
Buildings and infrastructure [Member] | ||
Movement in Property, Plant and Equipment: | ||
Begining balance | 28,397 | 28,604 |
Additions | 0 | 0 |
Transfers | 0 | |
Disposals | 0 | (207) |
Ending balance | 28,397 | 28,397 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment: | ||
Begining balance | 5,010 | 2,679 |
Additions | 1,177 | 2,358 |
Disposals | 0 | (27) |
Ending balance | 6,187 | 5,010 |
Property, Plant and Equipment, Net, by Type: | ||
Property, Plant and Equipment, Net | 22,210 | 23,387 |
Construction in Progress [Member] | ||
Movement in Property, Plant and Equipment: | ||
Begining balance | 54 | 543 |
Additions | 5,346 | 19,597 |
Transfers | (4,454) | (20,086) |
Disposals | 0 | 0 |
Ending balance | 946 | 54 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment: | ||
Begining balance | 0 | 0 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Ending balance | 0 | 0 |
Property, Plant and Equipment, Net, by Type: | ||
Property, Plant and Equipment, Net | 946 | 54 |
Interest capitalized [Member] | ||
Movement in Property, Plant and Equipment: | ||
Begining balance | 5,886 | 5,886 |
Additions | 0 | 0 |
Transfers | 0 | 0 |
Disposals | 0 | 0 |
Ending balance | 5,886 | 5,886 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment: | ||
Begining balance | 471 | 5 |
Additions | 203 | 466 |
Disposals | 0 | 0 |
Ending balance | 674 | 471 |
Property, Plant and Equipment, Net, by Type: | ||
Property, Plant and Equipment, Net | $ 5,212 | $ 5,415 |
Loan Payable (Details)
Loan Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Principal repayments | $ (6,711) | ||
Current portion | 8,096 | $ 7,629 | |
Non-current portion | 8,306 | 9,614 | |
Mining Equipment [Member] | |||
Balance, beginning of the period | 17,243 | $ 15,150 | 15,150 |
Additions | 3,751 | 10,727 | |
Down payments and taxes | (638) | (1,839) | |
Settlements | 0 | (603) | |
Principal repayments | (3,954) | (6,192) | |
Balance, end of the period | 16,402 | 17,243 | |
Current portion | 8,096 | 7,629 | |
Non-current portion | $ 8,306 | $ 9,614 |
Loan Payable (Details 1)
Loan Payable (Details 1) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Nov. 10, 2017 | Nov. 18, 2016 | |
Interest rates | 8.00% | ||||
Monthly payments | $ 1,700 | ||||
Minimum [Member] | |||||
Interest rates | 0.00% | 0.00% | 8.00% | ||
Monthly payments | $ 5 | $ 5 | |||
Maximum [Member] | |||||
Interest rates | 4.50% | 4.50% | 10.00% | ||
Monthly payments | $ 74 | $ 74 | |||
Komatsu financing agreements [Member] | Loans Payable [Member] | |||||
Total acquisition costs | $ 39,443 | $ 35,692 | |||
Average remaining life (years) | 2 years 4 months 28 days | 2 years 1 month 17 days |
Loan Payable (Details 2)
Loan Payable (Details 2) - Loans Payable [Member] $ in Thousands | Jun. 30, 2018USD ($) |
2,019 | $ 6,203 |
2,020 | 3,619 |
2,021 | 1,998 |
2,022 | 534 |
Total | $ 12,354 |
Loan Payable (Details Textual)
Loan Payable (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Payments to Acquire Productive Assets | $ 638 | $ 1,839 |
Percentage Of Pretax Purchase Price | 10.00% |
Derivative Liabilities (Details
Derivative Liabilities (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
June 2015 Financing [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Risk-free interest rate | 1.91% | 1.73% |
Expected life of derivative liability (in years) | 1 year 11 months 8 days | 2 years 5 months 8 days |
Expected volatility | 69.67% | 78.59% |
Dividend rate | 0.00% | 0.00% |
November 2016 Financing [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Risk-free interest rate | 1.98% | 1.73% |
Expected life of derivative liability (in years) | 3 years 4 months 24 days | 3 years 10 months 20 days |
Expected volatility | 74.75% | 75.69% |
Dividend rate | 0.00% | 0.00% |
Derivative Liabilities (Detai41
Derivative Liabilities (Details 1) - Warrant [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Balance, beginning of the period | $ 439 | $ 5,458 |
Change in fair value | (67) | (5,019) |
Balance, end of the period | $ 372 | $ 439 |
Derivative Liabilities (Detai42
Derivative Liabilities (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2018 | Feb. 22, 2018 | Dec. 31, 2017 | Jul. 25, 2016 | Jun. 08, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 6,317,700 | ||||
Derivative Liability | $ 1 | $ 2 | |||
Warrant Expiration Date | Jul. 25, 2019 | ||||
Warrant [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2 | ||||
June 2015 Warrant [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.7831 | $ 0.95 | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 8,000,000 | ||||
November 2016 Warrants [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.6650 | $ 0.85 | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 10,000,000 | ||||
Derivative Financial Instruments, Liabilities [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative Liability | $ 372 | $ 439 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligations [Line Items] | ||
Balance, beginning of the period | $ 1,838 | $ 1,366 |
Accretion | 83 | 126 |
Changes in cash flow estimates | 492 | 346 |
Balance, end of the period | $ 2,413 | $ 1,838 |
Asset Retirement Obligations 44
Asset Retirement Obligations (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligations [Line Items] | |||
Asset Retirement Obligation | $ 2,413 | $ 1,838 | $ 1,366 |
Asset Retirement Obligation, Credit Adjusted Risk Free Rate | 8.34% | ||
Asset Retirement Obligation, Inflation Rate | 2.41% | ||
Long Term Debt Premium Paid | $ 101 | 90 | |
Surety Bond [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 4,921 | 3,612 | |
Bureau of Land Management [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Security Deposit | 1,749 | 1,465 | |
Lahontan Regional Water Quality Control Board [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Security Deposit | 2,450 | 1,869 | |
Regional Board [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Security Deposit | $ 278 | $ 278 |
Share Capital (Details)
Share Capital (Details) - Employee Stock Option [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Options outstanding | 2,600,001 | 1,555,000 |
Shares, Options granted | 1,605,001 | |
Shares, Options forfeited | (75,000) | (166,667) |
Shares, Options expired | (50,000) | (393,333) |
Shares, Options outstanding | 2,475,001 | 2,600,001 |
Weighted Average Exercise Price Per Share, Options outstanding | $ 0.54 | $ 0.85 |
Weighted Average Exercise Price Per Share, Options granted | 0.38 | |
Weighted Average Exercise Price Per Share, Options forfeited | 0.29 | 0.64 |
Weighted Average Exercise Price Per Share, Options expired | 1.16 | 1.13 |
Weighted Average Exercise Price Per Share, Options outstanding | $ 0.53 | $ 0.54 |
Share Capital (Details 1)
Share Capital (Details 1) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (years) | 5 years |
Dividend yield | 0.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Interest rate | 1.70% |
Volatility | 79.17% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Interest rate | 1.18% |
Volatility | 77.29% |
Share Capital (Details 2)
Share Capital (Details 2) - Employee Stock Option [Member] - $ / shares | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Outstanding | 2,475,001 | 2,600,001 | 1,555,000 |
Number Exercisable | 835,000 | ||
Remaining Contractual Life (Years) | 3 years 5 months 19 days | ||
Weighted Average Exercise Price | $ 0.53 | $ 0.54 | $ 0.85 |
September 3, 2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Outstanding | 150,000 | ||
Number Exercisable | 150,000 | ||
Remaining Contractual Life (Years) | 2 months 5 days | ||
Weighted Average Exercise Price | $ 1.59 | ||
September 8, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Outstanding | 430,000 | ||
Number Exercisable | 430,000 | ||
Remaining Contractual Life (Years) | 2 years 2 months 8 days | ||
Weighted Average Exercise Price | $ 0.58 | ||
November 30, 2021 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Outstanding | 365,000 | ||
Number Exercisable | 121,666 | ||
Remaining Contractual Life (Years) | 3 years 5 months 1 day | ||
Weighted Average Exercise Price | $ 0.66 | ||
March 20, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Outstanding | 400,002 | ||
Number Exercisable | 133,334 | ||
Remaining Contractual Life (Years) | 3 years 8 months 19 days | ||
Weighted Average Exercise Price | $ 0.65 | ||
October 20, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Outstanding | 1,129,999 | ||
Number Exercisable | 0 | ||
Remaining Contractual Life (Years) | 4 years 3 months 22 days | ||
Weighted Average Exercise Price | $ 0.29 |
Share Capital (Details 3)
Share Capital (Details 3) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 24,317,700 | 24,317,700 |
Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 24,317,700 | |
Remaining Contractual Life | 2 years 5 months 8 days | |
June 8, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 10,000,000 | |
Remaining Contractual Life | 2 years 2 months 8 days | |
Exercise Price | $ 0.7831 | |
July 25, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 6,317,700 | |
Remaining Contractual Life | 1 year 3 months 25 days | |
Exercise Price | $ 2 | |
November 18, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 8,000,000 | |
Remaining Contractual Life | 3 years 7 months 20 days | |
Exercise Price | $ 0.6650 |
Share Capital (Details Textual)
Share Capital (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jun. 14, 2017 | Mar. 14, 2017 | Feb. 22, 2018 | Mar. 20, 2017 | Jan. 17, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock Issued During Period, Shares, New Issues | 188,952,761 | 100,000 | ||||||||
Stock Issued During Period, Value, New Issues | $ 59 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 0 | $ 0 | $ 0 | |||||||
Allocated Share-based Compensation Expense | 80 | $ 85 | ||||||||
Proceeds from Issuance of Common Stock | $ 25,036 | $ 24,368 | $ 0 | |||||||
Payment Of Associated Fees | $ 668 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Number | 24,317,700 | 24,317,700 | 24,317,700 | |||||||
March 20, 2018 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 133,334 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Number | 10,000,000 | 10,000,000 | ||||||||
March 20, 2019 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 133,334 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Number | 6,317,700 | 6,317,700 | ||||||||
March 20, 2020 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 133,334 | |||||||||
Stock Compensation Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 7,200,000 | 7,200,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||||||
Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 400,002 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.65 | |||||||||
Allocated Share-based Compensation Expense | $ 35 | $ 52 | ||||||||
Chief Financial Officer [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 393,333 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 146,667 |
General and Administrative Ex50
General and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Audit, legal and professional fees | $ 169 | $ 108 | $ 409 | $ 396 |
Salaries and benefits and director fees | 180 | 140 | 683 | 700 |
Regulatory fees and licenses | 46 | 17 | 125 | 70 |
Insurance | 144 | 114 | 283 | 247 |
Corporate administration | 340 | 333 | 633 | 715 |
Total | $ 879 | $ 712 | $ 2,133 | $ 2,128 |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net income (loss) attributable to the shareholders of the Company - numerator for basic and diluted | $ (632) | $ 962 | $ (6,049) | $ (1,465) |
Denominator: | ||||
Weighted average number of common shares outstanding -basic and diluted | 300,101,444 | 111,148,683 | 244,772,735 | 112,360,179 |
Income (loss) per share – basic and diluted | $ 0 | $ 0.01 | $ (0.02) | $ (0.01) |
Loss Per Share (Details Textual
Loss Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,475,001 | 2,475,001 | 2,600,001 |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 24,317,700 | 24,317,700 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Balance, beginning of the period | $ 30,099 | $ 26,347 |
Interest payable transferred to principal balance | 0 | 2,212 |
Accretion of discount on loans | 994 | 1,940 |
Capitalized financing and legal fees | 0 | (400) |
Accretion of capitalized financing and legal fees | 130 | 0 |
Repayment of loans and interest | (6,711) | 0 |
Balance, end of the period | 24,512 | 30,099 |
Current portion | 24,512 | 7,712 |
Non-current portion | $ 0 | $ 22,387 |
Related Party Transactions (D54
Related Party Transactions (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Related Party Transaction [Line Items] | |||||
Accretion of the November 2017 Loan discount | $ 504 | $ 454 | $ 994 | $ 740 | |
Accretion of capitalized financing and legal fees | 66 | 0 | 130 | 0 | |
Interest expense related to the November 2017 Loan | 695 | 646 | 1,409 | 1,272 | |
Closing and commitment fees related to the Credit Facility | 10 | 0 | 40 | 0 | |
Interest expense related to Komatsu financial loans | [1] | 166 | 150 | 401 | 285 |
Accretion of discount and interest on loan | $ 1,441 | $ 1,250 | $ 2,974 | $ 2,297 | |
[1] | Komatsu is not a related party and has only been included in the above table to reconcile the total interest expense incurred for the period … to the amounts capitalized and expensed. |
Related Party Transactions (D55
Related Party Transactions (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Assets, GQM LLC | $ 160,379 | $ 149,095 |
Liabilities, GQM LLC | (24,130) | (28,024) |
Net assets, GQM LLC | $ 136,249 | $ 121,071 |
Related Party Transactions (D56
Related Party Transactions (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Net and comprehensive (income) loss | $ 1,236 | $ 230 | $ (2,410) | $ (159) |
Subsidiaries [Member] | ||||
Related Party Transaction [Line Items] | ||||
Net and comprehensive (income) loss | $ 2,475 | $ 462 | $ (4,819) | $ (317) |
Non-controlling interest percentage | 50.00% | 50.00% | 50.00% | 50.00% |
Gauss LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Net and comprehensive (income) loss | $ 1,238 | $ 230 | $ (2,410) | $ (159) |
Permanent Non-controlling Interest [Member] | Gauss LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Net and comprehensive (income) loss | 743 | 138 | (1,446) | (95) |
Temporary Non-controlling Interest [Member] | Gauss LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Net and comprehensive (income) loss | $ 495 | $ 92 | $ (964) | $ (64) |
Related Party Transactions (D57
Related Party Transactions (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Carrying value of non-controlling interest, Beginning Balance | $ 36,321 | |||
Capital contribution | 10,000 | |||
Net and comprehensive loss for the period | $ 1,236 | $ 230 | (2,410) | $ (159) |
Carrying value of non-controlling interest, Ending Balance | 44,875 | 44,875 | ||
Gauss LLC [Member] | Permanent Non-controlling Interest [Member] | ||||
Related Party Transaction [Line Items] | ||||
Carrying value of non-controlling interest, Beginning Balance | 36,321 | |||
Capital contribution | 10,000 | |||
Net and comprehensive loss for the period | (1,446) | |||
Carrying value of non-controlling interest, Ending Balance | 44,875 | 44,875 | ||
Gauss LLC [Member] | Temporary Non-controlling Interest [Member] | ||||
Related Party Transaction [Line Items] | ||||
Carrying value of non-controlling interest, Beginning Balance | 24,214 | |||
Capital contribution | 0 | |||
Net and comprehensive loss for the period | (964) | |||
Carrying value of non-controlling interest, Ending Balance | $ 23,250 | $ 23,250 |
Related Party Transactions (D58
Related Party Transactions (Details Textual) - USD ($) $ in Thousands | Nov. 10, 2017 | Jul. 01, 2017 | Nov. 18, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | May 23, 2017 | Jul. 25, 2016 |
Related Party Transaction [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 0 | $ 400 | ||||||||
Payments of Debt Issuance Costs | $ 30 | $ 0 | $ 0 | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 6,317,700 | |||||||||
Line of Credit Facility, Interest Rate During Period | 12.00% | |||||||||
Line of Credit Facility, Commitment Fee Percentage | 1.00% | |||||||||
Long-term Line of Credit | 0 | 0 | 3,000 | |||||||
Salaries, Wages and Officers' Compensation | 104 | $ 78 | 299 | $ 278 | ||||||
Prepaid Closing Fees | 0 | 0 | 38 | |||||||
Amendment Fees And Accrued Interest Payable Current | $ 28 | 28 | 463 | |||||||
Revolving Credit Facility [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Payments of Debt Issuance Costs | $ 30 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | |||||||||
Long-term Line of Credit | $ 3,000 | |||||||||
November 2016 Loan [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt Instrument, Maturity Date | Nov. 21, 2021 | |||||||||
Short-term Debt | $ 31,000 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 8,000,000 | |||||||||
Minimum [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 0.00% | 0.00% | 0.00% | ||||||
Debt Instrument, Periodic Payment, Principal | $ 1,000 | |||||||||
Maximum [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 4.50% | 4.50% | 4.50% | ||||||
Debt Instrument, Periodic Payment, Principal | $ 2,500 | |||||||||
Joint Venture Transaction [Member] | Cash [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Restricted Cash and Cash Equivalents | $ 5,930 | $ 5,930 | $ 2,606 | |||||||
GQM LLC [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | 20.00% | ||||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 2,203 | |||||||||
Secured Debt | $ 4,228 | $ 4,228 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 373 | $ 441 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 373 | 441 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Share Purchase Warrants [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 1 | 2 |
Share Purchase Warrants [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Share Purchase Warrants [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 1 | 2 |
Share Purchase Warrants [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Share Purchase Warrants Related Party [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 372 | 439 |
Share Purchase Warrants Related Party [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Share Purchase Warrants Related Party [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 372 | 439 |
Share Purchase Warrants Related Party [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 0 | $ 0 |
Financial Instruments (Details
Financial Instruments (Details Textual) - 6 months ended Jun. 30, 2018 $ in Thousands, $ in Thousands | USD ($) | CAD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | $ 10,537 | |
Financial Instruments Disclosure 5 | 55.00% | |
Financial Instruments Disclosure 6 | 1.00% | |
Federal Deposit Insurance Corporation [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash, FDIC Insured Amount | $ 250 | |
Canada Deposit Insurance Corporation [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposits | $ 100 |