Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2015 | Sep. 11, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | SILVER BULL RESOURCES, INC. | |
Entity Central Index Key | 1,031,093 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 159,072,657 | |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,368,494 | $ 1,879,318 |
Value-added tax receivable, net of allowance for uncollectible taxes of $102,098 and $116,274 respectively (Note 6) | $ 132,338 | 163,032 |
Income tax receivable | 2,027 | |
Other receivables | $ 26,455 | 28,637 |
Prepaid expenses and deposits | $ 110,635 | 219,717 |
Assets of discontinued operations held for sale (Note 4) | 1,281,518 | |
Total Current Assets | $ 1,637,922 | 3,574,249 |
Office and mining equipment, net (Note 7) | 316,548 | 363,519 |
Property concessions (Note 8) | 5,593,263 | 5,563,263 |
Goodwill (Note 9) | 18,495,031 | 18,495,031 |
TOTAL ASSETS | 26,042,764 | 27,996,062 |
CURRENT LIABILITIES | ||
Accounts payable | 120,792 | 253,419 |
Accrued liabilities and expenses | 276,308 | 354,792 |
Income tax payable | $ 14,467 | 10,000 |
Liabilities of discontinued operations held for sale (Note 4) | 8,894 | |
Total Current Liabilities | $ 411,567 | $ 627,105 |
COMMITMENTS AND CONTINGENCIES (Notes 1, 10 and 14) | ||
STOCKHOLDERS' EQUITY (Notes 10, 11 and 12) | ||
Common stock, $0.01 par value; 300,000,000 shares authorized, 159,072,657 and 159,072,657 shares issued and outstanding, respectively | $ 1,590,726 | $ 1,590,726 |
Additional paid-in capital | 125,013,945 | 124,921,150 |
Deficit accumulated during exploration stage | (101,192,237) | (99,301,107) |
Other comprehensive income | 218,763 | 158,188 |
Total Stockholders Equity | 25,631,197 | 27,368,957 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 26,042,764 | $ 27,996,062 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Allowance for uncollectible taxes, current | $ 102,098 | $ 116,274 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 159,072,657 | 159,072,657 |
Common stock, shares outstanding | 159,072,657 | 159,072,657 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS [Abstract] | ||||
REVENUES | ||||
EXPLORATION AND PROPERTY HOLDING COSTS | ||||
Exploration and property holding costs | $ 240,496 | $ 300,885 | $ 651,163 | $ 1,025,545 |
Depreciation and asset impairment | 13,479 | 29,524 | 46,060 | 409,812 |
TOTAL EXPLORATION AND PROPERTY HOLDING COSTS | 253,975 | 330,409 | 697,223 | 1,435,357 |
GENERAL AND ADMINISTRATIVE EXPENSES | ||||
Personnel | 125,560 | 145,350 | 410,724 | 478,476 |
Office and administrative | 103,396 | 106,408 | 387,859 | 410,932 |
Professional services | 82,048 | 32,637 | 247,493 | 210,897 |
Directors' fees | 48,104 | 47,517 | 154,664 | 163,305 |
Provision for (recovery of) uncollectible value-added taxes | $ 3,217 | (1,020) | 9,452 | 18,112 |
Depreciation | 717 | 889 | 2,487 | |
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | $ 362,325 | 331,609 | 1,211,081 | 1,284,209 |
LOSS FROM OPERATIONS | (616,300) | (662,018) | (1,908,304) | (2,719,566) |
OTHER (EXPENSES) INCOME | ||||
Interest and investment income | 132 | 3,286 | 772 | 10,035 |
Foreign currency transaction gain (loss) | $ (16,396) | (33,031) | $ (102,395) | (27,654) |
Miscellaneous income | 23,236 | 67,284 | ||
TOTAL OTHER (EXPENSES) INCOME | $ (16,264) | (6,509) | $ (101,623) | 49,665 |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (632,564) | (668,527) | (2,009,927) | (2,669,901) |
INCOME TAX EXPENSE | 1,509 | 6,846 | 6,150 | 17,779 |
LOSS FROM CONTINUING OPERATIONS | $ (634,073) | (675,373) | (2,016,077) | (2,687,680) |
Loss from discontinued operations, net of income taxes (Note 4) | $ (77,198) | (159,277) | $ (411,484) | |
(Loss) gain on sale of assets of discontinued operations, net of income taxes (Note 4) | $ (1,182) | 284,224 | ||
NET LOSS | (635,255) | $ (752,571) | (1,891,130) | $ (3,099,164) |
OTHER COMPREHENSIVE INCOME | ||||
Foreign currency translation adjustments | $ 88 | $ 21,662 | 53,412 | $ 19,996 |
Realized foreign currency translation gain on sale of assets of discontinued operations (Note 4) | 7,163 | |||
TOTAL OTHER COMPREHENSIVE INCOME | $ 88 | $ 21,662 | 60,575 | $ 19,996 |
COMPREHENSIVE LOSS | $ (635,167) | $ (730,909) | $ (1,830,555) | $ (3,079,168) |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | ||||
Loss from continuing operations | $ (0.01) | $ (0.01) | $ (0.02) | |
Loss from discontinued operations | ||||
Net loss | $ (0.01) | $ (0.01) | $ (0.02) | |
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 159,072,657 | 159,072,657 | 159,072,657 | 159,072,657 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Jul. 31, 2015 - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Other Comprehensive Income [Member] | Deficit Accumulated During Exploration Stage [Member] |
Balance at Oct. 31, 2014 | $ 27,368,957 | $ 1,590,726 | $ 124,921,150 | $ 158,188 | $ (99,301,107) |
Balance, shares at Oct. 31, 2014 | 159,072,657 | 159,072,657 | |||
Stock option activity as follows: | |||||
Stock based compensation for options issued to officers, employees, consultants and directors | $ 92,795 | $ 92,795 | |||
Other comprehensive income | 60,575 | $ 60,575 | |||
Net loss | (1,891,130) | $ (1,891,130) | |||
Balance at Jul. 31, 2015 | $ 25,631,197 | $ 1,590,726 | $ 125,013,945 | $ 218,763 | $ (101,192,237) |
Balance, shares at Jul. 31, 2015 | 159,072,657 | 159,072,657 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (1,891,130) | $ (3,099,164) | |
Adjustments to reconcile net loss to net cash used by operating activities: | |||
Depreciation and asset impairment | 50,254 | 611,239 | |
Provision for (recovery of) uncollectible value-added taxes | 9,452 | $ 18,112 | |
Gain on sale of assets of discontinued operations (Note 4) | $ (284,224) | ||
Other income | $ (54,914) | ||
Foreign currency transaction loss | $ 174,485 | 39,017 | |
Stock options issued for compensation | $ 92,795 | 145,413 | |
Changes in operating assets and liabilities: | |||
Restricted cash | (5,937) | ||
Value-added tax receivable | $ (7,313) | $ 113,578 | |
Income taxes receivable | 1,822 | ||
Other receivables | (1,849) | $ 28,459 | |
Prepaid expenses and deposit | 107,508 | 106,412 | |
Accounts payable | (139,531) | (312,850) | |
Accrued liabilities and expenses | (28,135) | (46,694) | |
Income tax payable | 4,509 | 13,258 | |
Net cash used in operating activities | (1,911,357) | (2,444,071) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Other assets | $ 80,238 | (62,772) | |
Equipment purchase | (13,495) | ||
Proceeds from sale of equipment | 101,715 | ||
Acquisition of property concessions | $ (30,000) | $ (377,845) | |
Net proceeds from sale of discontinued operations (Note 4) | 1,361,701 | ||
Net cash provided by (used in) investing activities | $ 1,411,939 | $ (352,397) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net cash provided by financing activities | |||
Effect of exchange rates on cash and cash equivalents | $ (18,257) | $ 4,671 | |
Net decrease in cash and cash equivalents | (517,675) | (2,791,797) | |
Cash and cash equivalents, beginning of period | 1,886,169 | [1] | 5,251,003 |
Cash and cash equivalents end of period | 1,368,494 | 2,459,206 | |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | |||
Income taxes paid | $ 4,261 | $ 12,561 | |
Interest paid | |||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Property concessions capitalized and included in accrued liabilities | |||
[1] | Cash and cash equivalents at October 31, 2014 included $6,851 in assets of discontinued operations held for sale. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | ||
Discontinued operations, cash and cash equivalents | $ 6,851 |
ORGANIZATION, DESCRIPTION OF BU
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN | 9 Months Ended |
Jul. 31, 2015 | |
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN [Abstract] | |
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN | NOTE 1 – ORGANIZATION , DESCRIPTION OF BUSINESS AND GOING CONCERN Silver Bull Resources , Inc. (the “Company” ) was incorporated in the State of Nevada on November 8, 1993 as the Cadgie Company for the purpose of acquiring and developing mineral properties. The Cadgie Company was a spin-off from its predecessor, Precious Metal Mines, Inc. On June 28, 1996, the Company's name was changed to Metalline Mining Company . On April 2 1 , 201 1 , the Company's name was change d to Silver Bull Resources , Inc. The Company's fiscal year-end is October 31. The Company has not realized any revenues from its planned operations and is considered an exploration stage company. The Company has not established any reserves with respect to its exploration projects and may never enter into the development stage with respect to any of its projects. The Company engages in the business of mineral exploration. The Company currently owns or has the option to acquire a number of property concessions in Mexico (collectively known as the “ Sierra Mojada Property” ). The Company conducts its operations in Mexico through its wholly-owned subsidiary corporations, Minera Metalin S.A. de C.V. (“Minera”) and Contratistas de Sierra Mojada S.A. de C.V. (“Contratistas”) and through Minera's wholly-owned subsidiary Minas de Coahuila SBR S.A. de C.V. (“Minas”) . On April 16, 2010, Metalline Mining Delaware, Inc., a wholly-owned subsidiary of the Company, was merged with and into Dome Ventures Corporation (“Dome”). As a result, Dome became a wholly-owned subsidiary of the Company. Dome has a wholly-owned subsidiar y Dome Asia Inc. (“Dome Asia”), which is incorporated in the British Virgin Islands. Dome Asia has a wholly-owned subsidiar y incorporated in Gabon, African Resources SARL Gabon (“African Resources”), as well as a 99.99%-owned subsidiary, Dome Minerals Nigeria Limited, incorporated in Nigeria. In January 2015, the Company completed the sale of its subsidiary Dome International Global Inc. (“Dome International”), including Dome International's wholly-owned subsidiary Dome Ventures SARL Gabon (“Dome Gabon”), which held the Ndjole Prospect in Gabon (Note 4 ). The Company's efforts and expenditures have been concentrated on the exploration of properties, principally in the Sierra Mojada Property located in Coahuila, Mexico. The Company has not determined whether its exploration properties contain ore reserves that are economically recoverable. The ultimate realization of the Company's investment in exploration properties is dependent upon the success of future property sales, the existence of economically recoverable reserves, and the ability of the Company to obtain financing or make other arrangements for exploration, development, and future profitable production activities. The ultimate realization of the Company's investment in exploration properties cannot be determined at this time. Accordingly, no provision for any asset impairment that may result, in the event the Company is not successful in developing or selling these properties, has been made in the accompanying condensed consolidated financial statemen ts, except as disclosed in Notes 4 and 8. Since its inception in November 1993, the Company has not generated revenue and has incurred a deficit of $ 101,192,237 . Accordingly, the Company has not generated cash flow from operations, and since inception the Company has relied primarily upon proceeds from private placements and registered direct offerings of the Company's equity securities and warrant exercises as the primary sources of financing to fund the Company's operations. As of July 31 , 2015 , the Company had working capital of $ 1,226,355 and cash and cash equivalents of $ 1,368,494 . The Company's continuation as a going concern is dependent upon several options not limited to the following: obtaining adequate equity financing which the Company has successfully secured periodically since its inception, joint venture opportunities on the Sierra Mojada property and asset divestitures However, there is no assurance that the Company will be successful in pursuing these options and accordingly, there is substantial doubt as to whether the Company's existing cash resources and working capital are sufficient to enable the Company to continue its operations for the next twelve months. These consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary in the event the Company can no longer continue as a going concern and such adjustment could be material. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jul. 31, 2015 | |
BASIS OF PRESENTATION [Abstract] | |
BASIS OF PRESENTATION | NOTE 2 – BASIS OF PRESENTATION The Company's unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules of the U.S. Securities and Exchange Commission (“SEC”) regarding interim reporting. All intercompany transactions and balances have been eliminated during consolidation. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet at October 31, 2014 was derived from the audited consolidated financial statements. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended October 31, 2014. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, except as disclosed in Note 3. In the opinion of management, the unaudited interim condensed consolidated financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period s presented. Uncertainties with respect to estimates and assumptions are inherent in the preparation of the Company's condensed consolidated financial statements; accordingly, operating results for the nine months ended July 31 , 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2015. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 31, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SIGNIFICANT ACCOUNTING POLIC IES The significant accounting policies are defined in the Company's Annual Report on Recent Accounting Pronouncements Adopted in the Nine Month Period Ended July 31 , 2015 Effective November 1, 2014, the Company adopted Accounting Standards Update (“ASU”) 2013-11, “ Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefi t When a Net Operating Loss Carry F orward , a Similar Tax Loss, or a Tax Credit Carry F orward Exists .” The updated guidance requires an entity to net its unrecognized tax benefits against the deferred tax assets for all same jurisdiction net operating loss carry forwards, similar tax losses, or tax credit carry forwards. A gross presentation will be required only if such carry forwards are not available or would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax provision. The adoption of this update did not have a material impact on the Company's financial position, results of operations or cash flows and disclosures at this time. Effective November 1, 2014, the Company adopted ASU 2013-05, “Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment .” The updated standard clarifies the applicable guidance for a parent company's accounting for the release of the cumulative translation adjustment into net income upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The adoption of this update did not have a material impact on the Company's financial position, results of operations or cash flows and disclosures at this time. Recent Accounting Pronouncements Not Yet Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-03, “Simplifying the Presentation of In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which amends the consolidation requirements in Accounting Standards Codification 810. These changes become effective prospectively for the Company's fiscal year beginning November 1, 2016. The Company has not determined the effects of this update on the Company's financial position, results of operations or cash flows and disclosures at this time. In April 2014, the FASB ASU 2014-08, “ Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ” Under ASU 2014-08 , only disposals of a component or group of components of an entity representing a strategic shift that has (or will have) a major effect on an entity's operations and financial results are presented as discontinued operations. In addition, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide additional information about the assets, liabilities, income, and expenses of discontinued operations. ASU 2014-08 also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company has not determined the effects of this update on the Company's financial position, results of operations or cash flows and disclosures at this time. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The updated guidance provides a five-step approach to be applied to all contracts with customers and requires expanded disclosures about revenue recognition. As discussed in ASU 2015-14, the update is effective for annual periods beginning after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016 . Early application is not permitted. The Company has not determined the effects of this update on the Company's financial position, results of operations or cash flows and disclosures at this time. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity's Ability To Continue as a Going Concern." ASU 2014-15 is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. The u pdate provides guidance to an organization's management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for annual periods beginning after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. The Company has not determined the effects of this update on the Company's financial position, results of operations or cash flows and disclosures at this time. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the SEC did not or are not believed to have a material impact on the Company's present or future consolidated financial statements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Jul. 31, 2015 | |
DISCONTINUED OPERATIONS [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 4 – DISCONTINUED OPERATIONS On January 23, 2015, the Company closed the sale 100 1,500,000 75,000 213,299 187,981 The following table details selected financial information included in the (income) loss from discontinued operations for the three months and nine months ended July 31, 2015 and 2014 For the T hree M onths E nded For the Nine M onths E nded July 31, July 31, 2015 2014 2015 201 4 Exploration and property holding costs $ — $ 51,813 $ 85,542 $ 190,957 Depreciation and asset impairment — 97 3,305 198,940 Foreign currency transaction loss — 25,288 70,430 21,587 Loss (gain) on sale of discontinued operations, net of taxes 1,182 — (284,224 ) — Loss (income) from discontinued operations, net of income taxes $ 1,182 $ 77,198 $ (124,947 ) $ 411,484 The major classes of assets and liabilities of Dome International and its subsidiary Dome Gabon are presented as assets held for sale in the consolidated balance sheets and are as follows: July 31 , October 31 , 201 5 201 4 Assets Cash and cash equivalents $ — $ 6,851 Restricted cash — 1,417 Value-added tax receivable — 8,053 Prepaid expenses and deposits — 6,796 Other assets — 80,238 Office and mining equipment, net — 9,536 Property concession — 1,168,627 Total assets of discontinued operations held for sale $ — $ 1,281,518 Liabilities Accounts payable $ — $ 8,894 Total liabilities of discontinued operations held for sale $ — $ 8,894 |
LOSS PER SHARE
LOSS PER SHARE | 9 Months Ended |
Jul. 31, 2015 | |
LOSS PER SHARE [Abstract] | |
LOSS PER SHARE | NOTE 5 – LOSS PER SHARE The Company ha d stock options and warrants to purchase common stock in the aggregate of 9,807,858 shares and 21,473,978 shares outstanding at July 31, 2015 and July 31 , 201 4 , respectively . T hey were not included in the calculation of loss per share because they would have been anti-dilutive. |
VALUE-ADDED TAX RECEIVABLE
VALUE-ADDED TAX RECEIVABLE | 9 Months Ended |
Jul. 31, 2015 | |
VALUE-ADDED TAX RECEIVABLE [Abstract] | |
VALUE-ADDED TAX RECEIVABLE | NOTE 6 – VALUE-ADDED TAX RECEIVABLE Value-added tax (“VAT”) receivable relates to VAT paid in Mexico and Gabon. T he Company estimates net VAT of $ 132,338 will be received within 12 months of the balance sheet date. The allowance for uncollectible VAT taxes was estimated by management based upon a number of factors including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and Gabon and estimated net recovery after commissions. During the nine months ended July 31, 2015 , a provision for uncollectible VAT of $ 9,452 has been recorded. A summary of the changes in the allowance for uncollectible VAT taxes for the nine month s ended July 31, 201 5 is as follows: Allowance for uncollectible VAT taxes – October 31, 2014 $ 116,274 Provision of uncollectible VAT taxes 9,452 Foreign currency translation adjustment (20,375 ) Write-off VAT receivable (3,253 ) Allowance for uncollectible VAT taxes – July 31, 2015 $ 102,098 |
OFFICE AND MINING EQUIPMENT
OFFICE AND MINING EQUIPMENT | 9 Months Ended |
Jul. 31, 2015 | |
OFFICE AND MINING EQUIPMENT [Abstract] | |
OFFICE AND MINING EQUIPMENT | NOTE 7 – OFFICE AND MINING EQUIPMENT The following is a summary of the Company's office and mining equipment at July 31, 201 5 and October 31, 201 4 , respectively: July 31 , October 31, 201 5 201 4 Mining equipment $ 504,451 $ 504,451 Vehicles 81,261 81,261 Buildings and structures 191,966 191,966 Computer equipment and software 84,989 84,989 Well equipment 39,637 39,637 Office equipment 52,931 52,931 955,235 955,235 Less: Accumulated depreciation (638,687 ) (591,716 Office and mining equipment, net $ 316,548 $ 363,519 |
PROPERTY CONCESSIONS
PROPERTY CONCESSIONS | 9 Months Ended |
Jul. 31, 2015 | |
PROPERTY CONCESSIONS [Abstract] | |
PROPERTY CONCESSIONS | NOTE 8 – PROPERTY CONCESSIO NS The following is a summary of the Company's property concessions in Sierra Mojada, Mexico as at July 31 , 2015 and October 31, 201 4 , respectively: Property concessions - October 31, 2014 $ 5,563,263 Acquisitions 30,000 Property concessions - July 31, 2015 $ 5,593,263 During the nine months ended July 31, 2014, the Company decided not to pursue further work on a concession in Sierra Mojada, Mexico. As a result, the Company has written off the capitalized property concession balance related to this concession of $ 19,632 During the nine months ended July 31, 2014, the Company has written off the capitalized property concession balance related to the Mitzic concession of $ 324,560 |
GOODWILL
GOODWILL | 9 Months Ended |
Jul. 31, 2015 | |
GOODWILL [Abstract] | |
GOODWILL | NOTE 9 – GOODWILL Goodwill represents the excess, at the date of acquisition, of the purchase price of the business acquired over the fair value of the net tangible and intangible assets acquired. Due to the weakness in the mineral commodity business the Company performed a goodwill impairment test at July 31, 2015. The Company did not elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount and therefore performed the two-step goodwill impairment test. Based on this test the Company determined that the fair value of the reporting unit exceeded the carrying amount and no impairment was necessary. The Company performs its annual goodwill impairment tests at April 30th of each fiscal year. The following is a summary of the Company's goodwill balance as at July 31, 2015 and October 31, 2014 , respectively: Goodwill - October 31, 2014 $ 18,495,031 Goodwill - July 31, 2015 $ 18,495,031 |
SHAREHOLDER RIGHTS PLAN
SHAREHOLDER RIGHTS PLAN | 9 Months Ended |
Jul. 31, 2015 | |
SHAREHOLDER RIGHTS PLAN [Abstract] | |
SHAREHOLDER RIGHTS PLAN | NOTE 10 – SHAREHOLDER RIGHTS PLAN On June 11, 2007 June 22, 2007 is attached to each share of Company common stock issued since that date. Each Right is attached to the underlying common stock and will remain with the common stock if the stock is sol d or transferred. As of July 31, 2015 , there are 15 9 ,072,657 shares outstanding with Rights attached. In certain circumstances, in the event that any person acquires beneficial ownership of 20 20 The Rights will expire on June 11, 2017. |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Jul. 31, 2015 | |
COMMON STOCK [Abstract] | |
COMMON STOCK | NOTE 1 1 - COMMON STOCK No common stock was issued during the nine months ended July 31 , 2015 and July 31 , 2014 . |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Jul. 31, 2015 | |
STOCK OPTIONS [Abstract] | |
STOCK OPTIONS | NOT E 1 2 - STOCK OPTIONS The Company has two active stock option plans. Under the 2006 Stock Option Plan (the “2006 Plan”) , the Company may grant non-statutory and incentive options to employees, directors and consultants for up to a total of 5,000,000 . Under the 2010 Stock Option and Stock Bonus Plan (the “2010 Plan”), the lesser of (i) 30,000,000 Options are typically granted with an exercise price equal to the closing market price of the Company's stock at the date of grant , have a graded vesting schedule over approximately one to two years and have a contractual term of two to 10 No options were granted or exercised during the nine months ended July 31 , 2015 and July 31, 2014 . The following is a summary of stock option activity for the nine month s ended July 31, 2015 : Options Shares Weighted Average Weighted Contractual Aggregate Outstanding at October 31, 2014 11,422,144 $ 0.50 3.00 — Forfeited or Cancelled (1,614,286 ) 0.58 Outstanding at July 31, 2015 9,807,858 $ 0.49 2.31 $ — Vested or Expected to Vest at July 31,2015 9,807,858 $ 0.49 2.31 $ — Exercisable at July 31, 2015 8,245,357 $ 0.54 2.09 $ — The Company recognized stock-based compensation costs for stock options of $ 92,795 and $ 145,413 for the nine months ended July 31, 2015 and 201 4 , respectively . The Company typically does not recognize any tax benefits for stock options due to the Company's recurring losses . The Company currently expects al l outstanding options to vest. Compensation cost is revised if subsequent information indicates that the actual number of options that will vest is likely to differ from previous estimates. Summarized information about stock options outstanding and exercisable at July 31, 2015 is as follows: Options Outstanding Options Exercisable Exercise Number Weighted Weighted Number Weighted $ 0.26 2,650,000 3.87 $ 0.26 1,087,499 $ 0.26 0.37 1,785,000 2.90 0.37 1,785,000 0.37 0.44 0.73 4,730,000 1.43 0.58 4,730,000 0.58 1.05 1.12 600,000 0.54 1.09 600,000 1.09 2.18 42,858 2.47 2.18 42,858 2.18 $ 0.26 2.18 9,807,858 2.31 $ 0.49 8,245,357 $ 0.54 As of July 31 , 2015 , there was $ 35,171 of total unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the qualified stock option plans. That cost is expected to be recognized over a weighted average period of 0. 48 years . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Jul. 31, 2015 | |
FINANCIAL INSTRUMENTS [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 1 3 – 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 financial assets or the assumption of liabilities carried at amortized cost, in which case the transaction costs adjust the carrying amount. 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; and 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). 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. As of July 31, 2015 and October 31, 2014, the Company had no financial assets or liabilities required to be reported for fair value purposes. The carrying amounts of the Company's financial instruments, including cash and cash equivalents, other receivables, accounts payable and accrued liabilities and expenses approximate fair value at July 31, 2015 and October 31, 2014 due to the short maturities of these financial instruments. 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 that counterparties demonstrate minimum acceptable creditworthiness. The Company maintains its U.S. dollar and Canadian dollar (“$CDN”) cash and cash equivalents in bank and demand deposit 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 $ 250,000 1 0 0,000 . Certain United States and Canadian bank accounts held by the Company exceed these federally insured limits or are uninsured as they related to U.S. dollar deposits held in Canadian financial institutions. As of July 31 , 2015 and October 31, 201 4 , the Company's cash and cash equivalent balances held in United States and Canadian financial institutions included $ 1,276,057 and $ 1,681,759 respectively, which was not 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 and cash equivalents . The Company also maintains cash in bank accounts in Mexico and Gabon. These accounts are denominated in the local currency and are considered uninsured. As of July 31 , 2015 and October 31, 201 4 , the U.S. dollar equivalent balance for these accounts was $ 15,899 and $ 115,686 respectively. Interest Rate Risk The Company holds substantially all of the Company's cash and cash equivalents in bank and demand deposit accounts with major financial institutions. The interest rates received on these balances may fluctuate with changes in economic conditions. Based on the average cash and cash equivalent balances during the nine months ended July 31 , 2015, a 1% decrease in interest rates would have resulted in a reduction of approximately $ 414 in interest income for the period. Foreign Currency Exchange Risk Certain purchases of labor, operating supplies and capital assets are denominated in $CDN, Mexican Peso (“$MXN”), Central African Francs (“$CFA”) or other currencies. As a result, currency exchange fluctuations may impact the costs of our operations. Specifically, the appreciation of the $ MXN, $CDN or $CFA against the U . S . dollar may result in an increase in operating expenses and capital costs in U . S . dollar terms. As of July 31 , 2015 , the Company maintained the majority of its cash balance in U . S . dollars. The Company currently does not engage in any currency hedging activities. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14 - COMMITMENTS AND CONTINGENCIES Compliance with Environmental Regulations The Company's 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 project, and cause changes or delays in the Company's activities. Property Concessions in Mexico To properly maintain property concessions in Mexico, the Company is required to pay a semi-annual fee to the Mexican government and complete annual assessment work. In addition two of the concessions in the Sierra Mojada project are subject to options to purchase from existing third party concession owners. Pursuant to the op tion purchase agreements, the Company is required to make certain payments over the terms of these contracts to obtain full ownership of these concessions as set forth in the table below: Nuevo Dulces Nombres (Centenario) and Yolanda III (2 concessions) Payment Date Payment Amount Monthly payment beginning August $ 20,000 2016 and ending July 2018 (1) Until July 2018, the Company has the option of acquiring Nuevo Dulces Nombres (100% interest) for $ 4 2 If a change of control occurs prior to May 30, 2016 the Company is required to make a payment of $ 200,000 Royalty The Company has agreed to pay a 2 6.875 Litigation and Claims In July 2014 a local cooperative named Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (“Mineros Norteños”) filed an action before the First Court in Civil Matters in Chihuahua City, Mexico against the Company's subsidiary , Minera Metalin, claiming that the Company breached an agreement regarding the development of the Sierra Mojada Project. Mineros Norteños is seeking payment of the R oyalty, including interest at a rate of 6 notwithstanding that no revenue has been produced from the applicable mining concessions. Mineros Norteños med work for the Company . The Company and the Company's Mexican legal counsel believe that this claim is without merit and have ass erted all applicable defenses. The Company has not accrued any amounts in the financial statements with respect to this claim. From time to time, the Company is involved in other disputes, claims, proceedings and legal actions arising in the ordinary course of business. The Company intends to vigorously defend all claims against the Company, and pursue its full legal rights in cases where the Company has been harmed. Although the ultimate outcome of these proceedings cannot be accurately predicted due to the inherent uncertainty of litigation, in the opinion of management, based upon current information, no other currently pending or overtly threatened proceeding is expected to have a material adverse effect on the Company's business, financial condition or results of operations. Office Lease Commitment The Company entered into a five March 31, 2017 7,743 7,981 , 2015, one U.S. dollar approximates $ CDN 1.31 . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jul. 31, 2015 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | NOTE 15 – SEGMENT INFORMATION The Company operates in a single reportable segment : the exploration of mineral property interests. The Company has mineral property interests in Sierra Mojada, Mexico and Gabon, Africa. Approximate financial information by geography is as follows: For the T hree M onths E nded For the Nine M onths E nded July 31, July 31, 201 5 2014 201 5 2014 Net (loss) income for the period Mexico $ (270,000 $ (281,000 $ (725,000 $ (985,000 Canada (364,000 (339,000 (1,197,000 (1,276,000 Gabon - (56,000 (94,000 (427,000 Loss from Continuing Operations (634,000 (676,000 (2,016,000) (2,688,000 (Loss) Income from Discontinued Operations (1,000 (77,000 125,000 (411,000 Net Loss $ (635,000 $ (753,000 $ (1,891,000 $ (3,099,000 The following table details allocation of assets included in the accompanying balance sheet at July 31, 2015 : Canada Mexico Gabon Total Cash and cash equivalents $ 1,353,000 $ 1,000 $ 15,000 $ 1,369,000 Value-added tax receivable, net - 130,000 2,000 132,000 Other receivables 8,000 18,000 - 26,000 Prepaid expenses and deposits 37,000 73,000 1,000 111,000 Office and mining equipment, net - 317,000 - 317,000 Property concessions - 5,593,000 - 5,593,000 Goodwill - 18,495,000 - 18,495,000 $ 1,398,000 $ 24,627,000 $ 18,000 $ 26,043,000 The following table details allocation of assets included in the accompanying balance sheet at October 31 , 201 4 : Canada Mexico Gabon Total Cash and cash equivalents $ 1,770,000 $ 96,000 $ 13,000 $ 1,879,000 Value-added tax receivable, net - 160,000 3,000 163,000 Other receivables 5,000 25,000 - 30,000 Prepaid expenses and deposits 140,000 79,000 1,000 220,000 Assets of discontinued operations held for sale - - 1,282,000 1,282,000 Office and mining equipment, net 1,000 363,000 - 364,000 Property concessions - 5,563,000 - 5,563,000 Goodwill - 18,495,000 - 18,495,000 $ 1,916,000 $ 24,781,000 $ 1,299,000 $ 27,996,000 The Company has significant assets in Coahuila, Mexico. Although Mexico is generally considered economically stable, it is always possible that unanticipated events in Mexico could disrupt the Company's operations. Neither the Mexican government nor the Gabonese government requires foreign entities to maintain cash reserves in its respective country. The following table details allocation of exploration and property holding costs for the exploration properties : For the T hree M onths E nded For the Nine M onths E nded July 31, July 31, 201 5 2014 2015 2014 Exploration and property holding costs for the period Mexico Sierra Mojada $ (254,000 $ (308,000 $ (685,000 $ (1,035,000 Gabon Mitzic - (22,000 (12,000 (400,000 $ (254,000 $ (330,000 $ (697,000 $ (1,435,000 |
SIGNIFICANT ACCOUNTING POLICI23
SIGNIFICANT ACCOUNTING POLICIES (Policy) | 9 Months Ended |
Jul. 31, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in the Nine Month Period Ended July 31 , 2015 Effective November 1, 2014, the Company adopted Accounting Standards Update (“ASU”) 2013-11, “ Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefi t When a Net Operating Loss Carry F orward , a Similar Tax Loss, or a Tax Credit Carry F orward Exists .” The updated guidance requires an entity to net its unrecognized tax benefits against the deferred tax assets for all same jurisdiction net operating loss carry forwards, similar tax losses, or tax credit carry forwards. A gross presentation will be required only if such carry forwards are not available or would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax provision. The adoption of this update did not have a material impact on the Company's financial position, results of operations or cash flows and disclosures at this time. Effective November 1, 2014, the Company adopted ASU 2013-05, “Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment .” The updated standard clarifies the applicable guidance for a parent company's accounting for the release of the cumulative translation adjustment into net income upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The adoption of this update did not have a material impact on the Company's financial position, results of operations or cash flows and disclosures at this time. Recent Accounting Pronouncements Not Yet Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-03, “Simplifying the Presentation of In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which amends the consolidation requirements in Accounting Standards Codification 810. These changes become effective prospectively for the Company's fiscal year beginning November 1, 2016. The Company has not determined the effects of this update on the Company's financial position, results of operations or cash flows and disclosures at this time. In April 2014, the FASB ASU 2014-08, “ Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ” Under ASU 2014-08 , only disposals of a component or group of components of an entity representing a strategic shift that has (or will have) a major effect on an entity's operations and financial results are presented as discontinued operations. In addition, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide additional information about the assets, liabilities, income, and expenses of discontinued operations. ASU 2014-08 also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company has not determined the effects of this update on the Company's financial position, results of operations or cash flows and disclosures at this time. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The updated guidance provides a five-step approach to be applied to all contracts with customers and requires expanded disclosures about revenue recognition. As discussed in ASU 2015-14, the update is effective for annual periods beginning after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016 . Early application is not permitted. The Company has not determined the effects of this update on the Company's financial position, results of operations or cash flows and disclosures at this time. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity's Ability To Continue as a Going Concern." ASU 2014-15 is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. The u pdate provides guidance to an organization's management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for annual periods beginning after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. The Company has not determined the effects of this update on the Company's financial position, results of operations or cash flows and disclosures at this time. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the SEC did not or are not believed to have a material impact on the Company's present or future consolidated financial statements. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
DISCONTINUED OPERATIONS [Abstract] | |
Schedule of Financial Information Included in (Income) Loss and Balance Sheet from Discontinued Operations | For the T hree M onths E nded For the Nine M onths E nded July 31, July 31, 2015 2014 2015 201 4 Exploration and property holding costs $ — $ 51,813 $ 85,542 $ 190,957 Depreciation and asset impairment — 97 3,305 198,940 Foreign currency transaction loss — 25,288 70,430 21,587 Loss (gain) on sale of discontinued operations, net of taxes 1,182 — (284,224 ) — Loss (income) from discontinued operations, net of income taxes $ 1,182 $ 77,198 $ (124,947 ) $ 411,484 July 31 , October 31 , 201 5 201 4 Assets Cash and cash equivalents $ — $ 6,851 Restricted cash — 1,417 Value-added tax receivable — 8,053 Prepaid expenses and deposits — 6,796 Other assets — 80,238 Office and mining equipment, net — 9,536 Property concession — 1,168,627 Total assets of discontinued operations held for sale $ — $ 1,281,518 Liabilities Accounts payable $ — $ 8,894 Total liabilities of discontinued operations held for sale $ — $ 8,894 |
VALUE-ADDED TAX RECEIVABLE (Tab
VALUE-ADDED TAX RECEIVABLE (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
VALUE-ADDED TAX RECEIVABLE [Abstract] | |
Summary of the Changes in the Allowance for Uncollectible Taxes | Allowance for uncollectible VAT taxes – October 31, 2014 $ 116,274 Provision of uncollectible VAT taxes 9,452 Foreign currency translation adjustment (20,375 ) Write-off VAT receivable (3,253 ) Allowance for uncollectible VAT taxes – July 31, 2015 $ 102,098 |
OFFICE AND MINING EQUIPMENT (Ta
OFFICE AND MINING EQUIPMENT (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
OFFICE AND MINING EQUIPMENT [Abstract] | |
Summary of Office and Mining Equipment | July 31 , October 31, 201 5 201 4 Mining equipment $ 504,451 $ 504,451 Vehicles 81,261 81,261 Buildings and structures 191,966 191,966 Computer equipment and software 84,989 84,989 Well equipment 39,637 39,637 Office equipment 52,931 52,931 955,235 955,235 Less: Accumulated depreciation (638,687 ) (591,716 Office and mining equipment, net $ 316,548 $ 363,519 |
PROPERTY CONCESSIONS (Tables)
PROPERTY CONCESSIONS (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
PROPERTY CONCESSIONS [Abstract] | |
Summary of Property Concessions | Property concessions - October 31, 2014 $ 5,563,263 Acquisitions 30,000 Property concessions - July 31, 2015 $ 5,593,263 |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
GOODWILL [Abstract] | |
Summary of the Goodwill Balance | Goodwill - October 31, 2014 $ 18,495,031 Goodwill - July 31, 2015 $ 18,495,031 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
STOCK OPTIONS [Abstract] | |
Schedule of Stock Option Activity | Options Shares Weighted Average Weighted Contractual Aggregate Outstanding at October 31, 2014 11,422,144 $ 0.50 3.00 — Forfeited or Cancelled (1,614,286 ) 0.58 Outstanding at July 31, 2015 9,807,858 $ 0.49 2.31 $ — Vested or Expected to Vest at July 31,2015 9,807,858 $ 0.49 2.31 $ — Exercisable at July 31, 2015 8,245,357 $ 0.54 2.09 $ — |
Schedule of Stock Options Outstanding and Exercisable by Exercise Price Range | Options Outstanding Options Exercisable Exercise Number Weighted Weighted Number Weighted $ 0.26 2,650,000 3.87 $ 0.26 1,087,499 $ 0.26 0.37 1,785,000 2.90 0.37 1,785,000 0.37 0.44 0.73 4,730,000 1.43 0.58 4,730,000 0.58 1.05 1.12 600,000 0.54 1.09 600,000 1.09 2.18 42,858 2.47 2.18 42,858 2.18 $ 0.26 2.18 9,807,858 2.31 $ 0.49 8,245,357 $ 0.54 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of Payments Required to Obtain Full Ownership of Property Concessions | Nuevo Dulces Nombres (Centenario) and Yolanda III (2 concessions) Payment Date Payment Amount Monthly payment beginning August $ 20,000 2016 and ending July 2018 (1) Until July 2018, the Company has the option of acquiring Nuevo Dulces Nombres (100% interest) for $ 4 2 If a change of control occurs prior to May 30, 2016 the Company is required to make a payment of $ 200,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
SEGMENT INFORMATION [Abstract] | |
Schedule of Net Income (Loss) by Segment | For the T hree M onths E nded For the Nine M onths E nded July 31, July 31, 201 5 2014 201 5 2014 Net (loss) income for the period Mexico $ (270,000 $ (281,000 $ (725,000 $ (985,000 Canada (364,000 (339,000 (1,197,000 (1,276,000 Gabon - (56,000 (94,000 (427,000 Loss from Continuing Operations (634,000 (676,000 (2,016,000) (2,688,000 (Loss) Income from Discontinued Operations (1,000 (77,000 125,000 (411,000 Net Loss $ (635,000 $ (753,000 $ (1,891,000 $ (3,099,000 |
Schedule of the Allocation of Assets by Segment | Canada Mexico Gabon Total Cash and cash equivalents $ 1,353,000 $ 1,000 $ 15,000 $ 1,369,000 Value-added tax receivable, net - 130,000 2,000 132,000 Other receivables 8,000 18,000 - 26,000 Prepaid expenses and deposits 37,000 73,000 1,000 111,000 Office and mining equipment, net - 317,000 - 317,000 Property concessions - 5,593,000 - 5,593,000 Goodwill - 18,495,000 - 18,495,000 $ 1,398,000 $ 24,627,000 $ 18,000 $ 26,043,000 Canada Mexico Gabon Total Cash and cash equivalents $ 1,770,000 $ 96,000 $ 13,000 $ 1,879,000 Value-added tax receivable, net - 160,000 3,000 163,000 Other receivables 5,000 25,000 - 30,000 Prepaid expenses and deposits 140,000 79,000 1,000 220,000 Assets of discontinued operations held for sale - - 1,282,000 1,282,000 Office and mining equipment, net 1,000 363,000 - 364,000 Property concessions - 5,563,000 - 5,563,000 Goodwill - 18,495,000 - 18,495,000 $ 1,916,000 $ 24,781,000 $ 1,299,000 $ 27,996,000 |
Schedule of Exploration and Property Holding Costs by Segment | For the T hree M onths E nded For the Nine M onths E nded July 31, July 31, 201 5 2014 2015 2014 Exploration and property holding costs for the period Mexico Sierra Mojada $ (254,000 $ (308,000 $ (685,000 $ (1,035,000 Gabon Mitzic - (22,000 (12,000 (400,000 $ (254,000 $ (330,000 $ (697,000 $ (1,435,000 |
ORGANIZATION, DESCRIPTION OF 32
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2015 | Oct. 31, 2014 | |
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN [Abstract] | ||
Accumulated Deficit | $ 101,192,237 | $ 99,301,107 |
Working capital | 1,226,355 | |
Cash and cash equivalents | $ 1,368,494 | $ 1,879,318 |
Period in which cash resources and working capital sufficient to enable continue operations | 12 months |
DISCONTINUED OPERATIONS (Narrat
DISCONTINUED OPERATIONS (Narrative) (Details) - USD ($) | Jan. 23, 2015 | Jul. 31, 2014 |
DISCONTINUED OPERATIONS [Abstract] | ||
Ownership percentage held by entity | 100.00% | |
Cash consideration | $ 1,500,000 | |
Reimbursement expenses | 75,000 | |
Transaction costs | $ 213,299 | |
Impairment loss | $ 187,981 |
DISCONTINUED OPERATIONS (Schedu
DISCONTINUED OPERATIONS (Schedule of Financial Information Included in (Income) Loss from Discontinued Operations) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
DISCONTINUED OPERATIONS [Abstract] | ||||
Exploration and property holding costs | $ 51,813 | $ 85,542 | $ 190,957 | |
Depreciation and asset impairment | 97 | 3,305 | 198,940 | |
Foreign currency transaction loss | $ 25,288 | 70,430 | $ 21,587 | |
Loss (gain) on sale of discontinued operations, net of taxes | $ 1,182 | (284,224) | ||
Loss (income) from discontinued operations, net of income taxes | $ 1,182 | $ 77,198 | $ (124,947) | $ 411,484 |
DISCONTINUED OPERATIONS (Sche35
DISCONTINUED OPERATIONS (Schedule of Major Classes of Assets and Liabilities Held for Sale in Balance Sheet) (Details) - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 6,851 | |
Restricted cash | 1,417 | |
Value-added tax receivable | 8,053 | |
Prepaid expenses and deposits | 6,796 | |
Other assets | 80,238 | |
Office and mining equipment, net | 9,536 | |
Property concession | 1,168,627 | |
Total assets of discontinued operations held for sale | 1,281,518 | |
Liabilities | ||
Accounts payable | 8,894 | |
Total liabilities of discontinued operations held for sale | $ 8,894 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - shares | 9 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
LOSS PER SHARE [Abstract] | ||
Anti-dilutive shares, stock options and warrants | 9,807,858 | 21,473,978 |
VALUE-ADDED TAX RECEIVABLE (Nar
VALUE-ADDED TAX RECEIVABLE (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Oct. 31, 2014 | |
Income Tax Examination [Line Items] | |||||
Value-added tax receivable, current | $ 132,338 | $ 132,338 | $ 163,032 | ||
Provision for uncollectible value-added taxes | $ 3,217 | $ (1,020) | $ 9,452 | $ 18,112 |
VALUE-ADDED TAX RECEIVABLE (Sum
VALUE-ADDED TAX RECEIVABLE (Summary of the Changes in the Allowance for Uncollectible Taxes) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
VALUE-ADDED TAX RECEIVABLE [Abstract] | ||||
Allowance for uncollectible VAT taxes, beginning balance | $ 116,274 | |||
Provision of uncollectible VAT taxes | $ 3,217 | $ (1,020) | 9,452 | $ 18,112 |
Foreign currency translation adjustment | (20,375) | |||
Write-off VAT receivable | (3,253) | |||
Allowance for uncollectible VAT taxes, ending balance | $ 102,098 | $ 102,098 |
OFFICE AND MINING EQUIPMENT (De
OFFICE AND MINING EQUIPMENT (Details) - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | $ 955,235 | $ 955,235 |
Less: Accumulated depreciation | (638,687) | (591,716) |
Office and mining equipment, net | 316,548 | 363,519 |
Mining equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 504,451 | 504,451 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 81,261 | 81,261 |
Building and structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 191,966 | 191,966 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 84,989 | 84,989 |
Well equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 39,637 | 39,637 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | $ 52,931 | $ 52,931 |
PROPERTY CONCESSIONS (Details)
PROPERTY CONCESSIONS (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Property Concessions [Line Items] | ||
Property concessions, beginning balance | $ 5,563,263 | |
Acquisitions | 30,000 | |
Property concessions, ending balance | $ 5,593,263 | |
Mexico, Sierra Mojada [Member] | ||
Property Concessions [Line Items] | ||
Capitalized property concessions write-off | $ 19,632 | |
Mitzic, Gabon [Member] | ||
Property Concessions [Line Items] | ||
Capitalized property concessions write-off | $ 324,560 |
GOODWILL (Narrative) (Details)
GOODWILL (Narrative) (Details) | 9 Months Ended |
Jul. 31, 2015USD ($) | |
GOODWILL [Abstract] | |
Goodwill impairment loss | $ 0 |
GOODWILL (Summary of the Goodwi
GOODWILL (Summary of the Goodwill Balance) (Details) - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
GOODWILL [Abstract] | ||
Goodwill | $ 18,495,031 | $ 18,495,031 |
SHAREHOLDER RIGHTS PLAN (Detail
SHAREHOLDER RIGHTS PLAN (Details) - $ / shares | 9 Months Ended | |
Jul. 31, 2015 | Oct. 31, 2014 | |
Class of Warrant or Right [Line Items] | ||
Common stock, shares outstanding | 159,072,657 | 159,072,657 |
Shareholder Rights [Member] | ||
Class of Warrant or Right [Line Items] | ||
Shareholder Rights, record date | Jun. 22, 2007 | |
Common stock, shares outstanding | 159,072,657 | |
Expiration date of Shareholders Rights | Jun. 11, 2007 | |
Minimum purchase of ownership percentage to activate Rights | 20.00% | |
Purchase price per Right | $ 20 |
COMMON STOCK (Details)
COMMON STOCK (Details) - shares | 9 Months Ended | |
Jul. 31, 2015 | Apr. 30, 2014 | |
Stockholders Equity Note [Line Items] | ||
Stock issued during period, shares | 0 | 0 |
STOCK OPTIONS (Narrative) (Deta
STOCK OPTIONS (Narrative) (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation costs recognized during the period | $ 92,795 | $ 145,413 |
Total unrecognized compensation costs related to non-vested share-based compensation arrangements granted under qualified stock option plans | $ 35,171 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average period for remaining compensation costs to be recognized | 5 months 23 days | |
Minimum [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for plan | 1 year | |
Contractual term for options | 2 years | |
Maximum [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for plan | 2 years | |
Contractual term for options | 10 years | |
2006 Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
The number of shares authorized under the plan | 5,000,000 | |
2010 Stock Option and Stock Bonus Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
The number of shares authorized under the plan | 30,000,000 |
STOCK OPTIONS (Schedule of Assu
STOCK OPTIONS (Schedule of Assumptions Used to Value Stock Options Granted) (Details) | 9 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term | ||
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term |
STOCK OPTIONS (Summary of Stock
STOCK OPTIONS (Summary of Stock Option Activity) (Details) - USD ($) None in scaling factor is -9223372036854775296 | 9 Months Ended | 12 Months Ended |
Jul. 31, 2015 | Oct. 31, 2014 | |
Shares | ||
Outstanding, beginning | 11,422,144 | |
Forfeited or Cancelled | (1,614,286) | |
Outstanding, ending | 9,807,858 | 11,422,144 |
Weighted Average Exercise Price | ||
Outstanding, beginning | $ 0.50 | |
Forfeited or Cancelled | 0.58 | |
Outstanding, ending | $ 0.49 | $ 0.50 |
Weighted average remaining contractual life, Outstanding | 2 years 3 months 22 days | 3 years |
Aggregate intrinsic value, Outstanding | ||
Vested or Expected to Vest: | ||
Shares | 9,807,858 | |
Weighted average exercise price | $ 0.49 | |
Weighted average remaining contractual life | 2 years 3 months 22 days | |
Aggregate intrinsic value | ||
Exercisable | ||
Shares | 8,245,357 | |
Weighted average exercise price | $ 0.54 | |
Weighted average remaining contractual life, Exercisable | 2 years 1 month 2 days | |
Aggregate intrinsic value, Exercisable |
STOCK OPTIONS (Summarized Infor
STOCK OPTIONS (Summarized Information of Stock Options Outstanding and Exercisable) (Details) - Jul. 31, 2015 - $ / shares | Total |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Minimum exercise price | $ 0.26 |
Maximum exercise price | $ 2.18 |
Number of options outstanding | 9,807,858 |
Weighted Average Remaining Contractual Life (Years) | 2 years 3 months 22 days |
Weighted Average Exercise Price | $ 0.49 |
Number Exercisable | 8,245,357 |
Options Exercisable - Weighted Average Exercise Price | $ 0.54 |
0.26 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 2,650,000 |
Weighted Average Remaining Contractual Life (Years) | 3 years 10 months 13 days |
Weighted Average Exercise Price | $ 0.26 |
Number Exercisable | 1,087,499 |
Options Exercisable - Weighted Average Exercise Price | $ 0.26 |
0.37 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 1,785,000 |
Weighted Average Remaining Contractual Life (Years) | 2 years 10 months 24 days |
Weighted Average Exercise Price | $ 0.37 |
Number Exercisable | 1,785,000 |
Options Exercisable - Weighted Average Exercise Price | $ 0.37 |
0.44 - 0.73 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Minimum exercise price | 0.44 |
Maximum exercise price | $ 0.73 |
Number of options outstanding | 4,730,000 |
Weighted Average Remaining Contractual Life (Years) | 1 year 5 months 5 days |
Weighted Average Exercise Price | $ 0.58 |
Number Exercisable | 4,730,000 |
Options Exercisable - Weighted Average Exercise Price | $ 0.58 |
1.05 - 1.12 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Minimum exercise price | 1.05 |
Maximum exercise price | $ 1.12 |
Number of options outstanding | 600,000 |
Weighted Average Remaining Contractual Life (Years) | 6 months 14 days |
Weighted Average Exercise Price | $ 1.09 |
Number Exercisable | 600,000 |
Options Exercisable - Weighted Average Exercise Price | $ 1.09 |
2.18 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 42,858 |
Weighted Average Remaining Contractual Life (Years) | 2 years 5 months 19 days |
Weighted Average Exercise Price | $ 2.18 |
Number Exercisable | 42,858 |
Options Exercisable - Weighted Average Exercise Price | $ 2.18 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) | 9 Months Ended | ||
Jul. 31, 2015USD ($) | Jul. 31, 2015CAD | Oct. 31, 2014USD ($) | |
FINANCIAL INSTRUMENTS [Abstract] | |||
Cash balance insured by FDIC per financial institution | $ 250,000 | ||
Cash balance insured by CDIC per financial institution | CAD | CAD 100,000 | ||
Total uninsured cash balances held with U.S. and Canadien financial institutions | 1,276,057 | $ 1,681,759 | |
Value of total cash accounts held in Mexico and Gabon | 15,899 | $ 115,686 | |
Effect of a 1% decrease in interest rates on interest income | $ 414 |
COMMITMENTS AND CONTINGENCIES50
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - Jul. 31, 2015 | CAD |
Office Lease Commitment: | |
Monthly rental payment due from lease inception through year two | CAD 7,743 |
Monthly rental payment due from year two through year four | CAD 7,981 |
Lease term | 5 years |
Foreign currency exchange rate translation | 1.31 |
Lease expiration | Mar. 31, 2017 |
Litigation and Claims: | |
Interest rate sought on the Royalty | 6.00% |
COMMITMENTS AND CONTINGENCIES51
COMMITMENTS AND CONTINGENCIES (Property Concessions) (Details) - Jul. 31, 2015 - USD ($) | Total | |
Property Concessions By Location Of Concessions [Line Items] | ||
Foreign currency exchange rate translation | 1.31 | |
Nuevo Dulces Nombres (Centenario) and Yolanda III [Member] | ||
Property Concessions By Location Of Concessions [Line Items] | ||
Monthly payment through 48 months after the initial payment date to obtain full ownership of concession | [1] | $ 20,000 |
Half yearly payment required to maintain acquisition option of concessions | 200,000 | |
Nuevo Dulces Nombres [Member] | ||
Property Concessions By Location Of Concessions [Line Items] | ||
Purchase price for the acquisition of 100% of the concession | 4,000,000 | |
Yolanda III [Member] | ||
Property Concessions By Location Of Concessions [Line Items] | ||
Purchase price for the acquisition of 100% of the concession | $ 2,000,000 | |
Sierra Mojada [Member] | ||
Property Concessions By Location Of Concessions [Line Items] | ||
Percentage rate of net smelter return royalties | 2.00% | |
The maximum net smelter return royalties that can be paid | $ 6,875,000 | |
[1] | Until July 2018, the Company has the option of acquiring Nuevo Dulces Nombres (100% interest) for $4 million and Yolanda III (100% interest) for $2 million plus a lump sum payment equal to any remaining monthly payments. If a change of control occurs prior to May 30, 2016 the Company is required to make a payment of $200,000 within 20 days of the change of control. |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Segment Net Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Loss from Continuing Operations | $ (634,073) | $ (675,373) | $ (2,016,077) | $ (2,687,680) |
(Loss) Income from Discontinued Operations | (1,182) | (77,198) | 124,947 | (411,484) |
Net Loss | (635,255) | (752,571) | (1,891,130) | (3,099,164) |
Mexico [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Loss from Continuing Operations | (270,000) | (281,000) | (725,000) | (985,000) |
Canada [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Loss from Continuing Operations | $ (364,000) | (339,000) | (1,197,000) | (1,276,000) |
Gabon [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Loss from Continuing Operations | $ (56,000) | $ (94,000) | $ (427,000) |
SEGMENT INFORMATION (Schedule53
SEGMENT INFORMATION (Schedule of Segment Assets) (Details) - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents | $ 1,368,494 | $ 1,879,318 |
Value-added tax receivable, net | 132,338 | 163,032 |
Other receivables | 26,455 | 28,637 |
Prepaid expenses and deposits | $ 110,635 | 219,717 |
Assets of discontinued operations held for sale | 1,281,518 | |
Office and mining equipment, net | $ 316,548 | 363,519 |
Property concessions | 5,593,263 | 5,563,263 |
Goodwill | 18,495,031 | 18,495,031 |
TOTAL ASSETS | 26,042,764 | 27,996,062 |
Canada [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents | $ 1,353,000 | $ 1,770,000 |
Value-added tax receivable, net | ||
Other receivables | $ 8,000 | $ 5,000 |
Prepaid expenses and deposits | $ 37,000 | $ 140,000 |
Assets of discontinued operations held for sale | ||
Office and mining equipment, net | $ 1,000 | |
Property concessions | ||
Goodwill | ||
TOTAL ASSETS | $ 1,398,000 | $ 1,916,000 |
Mexico [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents | 1,000 | 96,000 |
Value-added tax receivable, net | 130,000 | 160,000 |
Other receivables | 18,000 | 25,000 |
Prepaid expenses and deposits | 73,000 | $ 79,000 |
Assets of discontinued operations held for sale | ||
Office and mining equipment, net | 317,000 | $ 363,000 |
Property concessions | 5,593,000 | 5,563,000 |
Goodwill | 18,495,000 | 18,495,000 |
TOTAL ASSETS | 24,627,000 | 24,781,000 |
Gabon [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents | 15,000 | 13,000 |
Value-added tax receivable, net | $ 2,000 | $ 3,000 |
Other receivables | ||
Prepaid expenses and deposits | $ 1,000 | $ 1,000 |
Assets of discontinued operations held for sale | $ 1,282,000 | |
Office and mining equipment, net | ||
Property concessions | ||
Goodwill | ||
TOTAL ASSETS | $ 18,000 | $ 1,299,000 |
SEGMENT INFORMATION (Schedule54
SEGMENT INFORMATION (Schedule of Segment Exploration and Property Holding Costs) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Exploration and property holding costs for the period | $ (253,975) | $ (330,409) | $ (697,223) | $ (1,435,357) |
Mexico, Sierra Mojada [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Exploration and property holding costs for the period | $ (254,000) | (308,000) | (685,000) | (1,035,000) |
Mitzic, Gabon [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Exploration and property holding costs for the period | $ (22,000) | $ (12,000) | $ (400,000) |