Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2016 | Mar. 15, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 585,409 | $ 950,878 |
Value-added tax receivable, net of allowance for uncollectible taxes of $94,349 and $103,429 respectively (Note 6) | $ 118,798 | 132,207 |
Income tax receivable | 2,596 | |
Other receivables | $ 15,101 | 18,400 |
Prepaid expenses and deposits | 107,841 | $ 135,421 |
Assets held for sale (Note 7) | 37,494 | |
Total Current Assets | 864,643 | $ 1,239,502 |
Office and mining equipment, net (Note 8) | 247,570 | 305,614 |
Property concessions (Note 9) | 5,563,093 | 5,593,263 |
Goodwill (Note 10) | 2,058,031 | 2,058,031 |
TOTAL ASSETS | 8,733,337 | 9,196,410 |
CURRENT LIABILITIES | ||
Accounts payable | 115,812 | 119,371 |
Accrued liabilities and expenses (Note 11) | 281,780 | 282,933 |
Income tax payable | 5,002 | 5,436 |
Total Current Liabilities | $ 402,594 | $ 407,740 |
COMMITMENTS AND CONTINGENCIES (Notes 1, 12 and 16) | ||
STOCKHOLDERS' EQUITY (Notes 12, 13 and 14) | ||
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 | 125,031,324 | 125,025,319 |
Deficit accumulated during exploration stage | (118,512,069) | (118,046,936) |
Other comprehensive income | 220,762 | 219,561 |
Total Stockholders' Equity | 8,330,743 | 8,788,670 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 8,733,337 | $ 9,196,410 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for uncollectible taxes, current | $ 94,349 | $ 103,429 |
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 | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Income Statement [Abstract] | ||
REVENUES | ||
EXPLORATION AND PROPERTY HOLDING COSTS | ||
Exploration and property holding costs | $ 106,593 | $ 272,097 |
Depreciation, asset and property concessions' impairment | 50,503 | 17,632 |
TOTAL EXPLORATION AND PROPERTY HOLDING COSTS | 157,096 | 289,729 |
GENERAL AND ADMINISTRATIVE EXPENSES | ||
Personnel | 105,085 | 154,050 |
Office and administrative | 79,921 | 160,259 |
Professional services | 91,664 | 100,382 |
Directors' fees | 28,130 | 56,043 |
Provision for (recovery of) uncollectible value-added taxes | $ 293 | (250) |
Depreciation | 445 | |
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | $ 305,093 | 470,929 |
LOSS FROM OPERATIONS | (462,189) | (760,658) |
OTHER (EXPENSES) INCOME | ||
Interest and investment income | 291 | $ 258 |
Interest and finance costs (Note 11) | (714) | |
Foreign currency transaction loss | (5,309) | $ (98,762) |
Miscellaneous income | 1,588 | |
TOTAL OTHER EXPENSES | (4,144) | $ (98,504) |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (466,333) | (859,162) |
INCOME TAX (RECOVERY) EXPENSE | (1,200) | 1,571 |
LOSS FROM CONTINUING OPERATIONS | $ (465,133) | (860,733) |
Loss from discontinued operations, net of income taxes (Note 4) | (159,277) | |
Gain on sale of assets of discontinued operations, net of income taxes (Note 4) | 296,369 | |
NET LOSS | $ (465,133) | (723,641) |
OTHER COMPREHENSIVE INCOME | ||
Foreign currency translation adjustments | $ 1,201 | 50,347 |
Realized foreign currency translation gain on sale of assets of discontinued operations (Note 4) | 7,163 | |
TOTAL OTHER COMPREHENSIVE INCOME | $ 1,201 | 57,510 |
COMPREHENSIVE LOSS | $ (463,932) | $ (666,131) |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | ||
Loss from continuing operations | ||
Loss from discontinued operations | ||
Net loss | ||
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 159,072,657 | 159,072,657 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Jan. 31, 2016 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Other Comprehensive Income [Member] | Total |
Balance at Oct. 31, 2015 | $ 1,590,726 | $ 125,025,319 | $ (118,046,936) | $ 219,561 | $ 8,788,670 |
Balance, shares at Oct. 31, 2015 | 159,072,657 | 159,072,657 | |||
Stock option activity as follows: | |||||
Stock based compensation for options issued to officers and employees | $ 6,005 | $ 6,005 | |||
Other comprehensive income | $ 1,201 | 1,201 | |||
Net loss | $ (465,133) | (465,133) | |||
Balance at Jan. 31, 2016 | $ 1,590,726 | $ 125,031,324 | $ (118,512,069) | $ 220,762 | $ 8,330,743 |
Balance, shares at Jan. 31, 2016 | 159,072,657 | 159,072,657 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (465,133) | $ (723,641) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and asset impairment | 50,503 | 21,383 |
Provision for (recovery of) uncollectible value-added taxes | $ 293 | (250) |
Gain on sale of assets of discontinued operations (Note 4) | $ (296,369) | |
Other income | $ 675 | |
Foreign currency transaction loss | 16,793 | $ 172,002 |
Stock options issued for compensation | 6,005 | 31,189 |
Changes in operating assets and liabilities: | ||
Value-added tax receivable | 1,439 | (13,453) |
Income taxes receivable | (569) | (2,003) |
Other receivables | 2,559 | 855 |
Prepaid expenses and deposits | 27,166 | 30,788 |
Accounts payable | (3,553) | (53,119) |
Accrued liabilities and expenses | 5,810 | 71,484 |
Income tax payable | (434) | 2,000 |
Net cash used by operating activities | $ (358,446) | (759,134) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Other assets | $ 80,238 | |
Proceeds from sale of equipment | $ 869 | |
Net proceeds from sale of discontinued operations (Note 4) | $ 1,373,846 | |
Net cash provided by investing activities | $ 869 | $ 1,454,084 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net cash provided by financing activities | ||
Effect of exchange rates on cash and cash equivalents | $ (7,892) | $ (19,724) |
Net (decrease) increase in cash and cash equivalents | (365,469) | 675,226 |
Cash and cash equivalents beginning of period | 950,878 | 1,886,169 |
Cash and cash equivalents end of period | 585,409 | 2,561,395 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Income taxes paid | 178 | $ 1,541 |
Interest paid | $ 714 |
ORGANIZATION, DESCRIPTION OF BU
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN | 3 Months Ended |
Jan. 31, 2016 | |
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 21, 2011, the Company’s name was changed 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 subsidiary Dome Asia Inc. (“Dome Asia”), which is incorporated in the British Virgin Islands. Dome Asia has a wholly-owned subsidiary 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. 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. Going Concern Since its inception in November 1993, the Company has not generated revenue and has incurred a deficit of $118,512,069. 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 January 31, 2016, the Company had working capital of $462,049 and cash and cash equivalents of $585,409. The Company’s continuation as a going concern is dependent upon several possible financing and strategic options not limited to the following: obtaining adequate equity financing, 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 financing and strategic 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 through the end of the current fiscal year as a going concern. These unaudited interim condensed 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. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Jan. 31, 2016 | |
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, 2015 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, 2015. 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 periods 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 three months ended January 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2016. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jan. 31, 2016 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies are defined in the Company’s Annual Report on Form 10-K for the year ended October 31, 2015 filed on January 19, 2016, except as follows. Recent Accounting Pronouncements Adopted in the Three-Month Period Ended January 31, 2016 Effective November 1, 2015 the Company adopted Accounting Standards Update (“ Recent Accounting Pronouncements Not Yet Adopted In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities,” which (i) requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, (ii) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (iii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and (iv) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes become effective for the Company’s fiscal year beginning November 1, 2018. 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. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. These changes become effective for the Company’s fiscal year beginning November 1, 2017. Early application is permitted. The Company has not determined the effects of this update on the Company’s financial position, and disclosures at this time. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. These changes become effective 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 August 2015, the FASB issued ASU 2015-14, “Deferral of the Effective Date,” which defers the effective date of ASU 2014-09, “Revenue from Contracts with Customers” to become effective for the Company’s fiscal year beginning November 1, 2018. 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 July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which provides a revised, simpler measurement for inventory to be measured at the lower of cost and net realizable value. These changes become effective for the Company’s fiscal year beginning November 1, 2017. 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 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires that debt issuance costs related to a recognized debt liability be presented as a reduction to the carrying amount of that debt liability, not as an asset. 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 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 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 update 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 the Company’s fiscal year and interim periods within those years beginning after November 1, 2017. 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 | 3 Months Ended |
Jan. 31, 2016 | |
DISCONTINUED OPERATIONS [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 4 – DISCONTINUED OPERATIONS On January 23, 2015, the Company closed the sale to BHK Mining Corp. (formerly BHK Resources, Inc.) of 100% of the issued and outstanding securities of the Company’s former subsidiary, Dome International, which holds, indirectly, a 100% interest in the Ndjole concession. Under the terms of the share purchase agreement, the Company received cash consideration of $1,500,000 and reimbursement of certain expenses of $75,000 in cash. In addition, the Company incurred transaction costs of $201,154. As a result of this transaction, the Company realized a gain on the sale of assets of discontinued operations of $296,369, net of income taxes. The following table details selected financial information included in the income from discontinued operations for the three months ended January 31, 2016 and 2015. For the Three Months Ended January 31, 2016 2015 Exploration and property holding costs — 85,542 Depreciation and asset impairment — 3,305 Foreign currency transaction loss — 70,430 Gain on sale of discontinued operations, net of taxes — (296,369 ) Income from discontinued operations, net of income taxes $ — $ (137,092 ) |
LOSS PER SHARE
LOSS PER SHARE | 3 Months Ended |
Jan. 31, 2016 | |
LOSS PER SHARE [Abstract] | |
LOSS PER SHARE | NOTE 5 – LOSS PER SHARE The Company had stock options outstanding at January 31, 2016 and January 31, 2015 that upon exercise were issuable into 8,657,858 and 11,288,808 shares of the Company’s common stock, respectively. They 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 | 3 Months Ended |
Jan. 31, 2016 | |
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. The Company estimates net VAT of $118,798 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 tax returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and Gabon and estimated net recovery after commissions. During the three months ended January 31, 2016, a provision for uncollectible VAT of $293 has been recorded. A summary of the changes in the allowance for uncollectible VAT taxes for the three months ended January 31, 2016 is as follows: Allowance for uncollectible VAT taxes – October 31, 2015 $ 103,429 Provision for uncollectible VAT taxes 293 Foreign currency translation adjustment (8,971 ) Write-off VAT receivable (402 ) Allowance for uncollectible VAT taxes – January 31, 2016 $ 94,349 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 3 Months Ended |
Jan. 31, 2016 | |
ASSETS HELD FOR SALE [Abstract] | |
ASSETS HELD FOR SALE | NOTE 7 – ASSETS HELD FOR SALE The Company has classified certain fixed assets as assets held for sale as at January 31, 2016 as these assets were approved for immediate sale in their present condition, the assets were expected to be sold within one year and management has an active program to locate buyers for these assets. As at January 31, 2016, the assets held for sale had a net book value of $37,494. An impairment of $7,554 was recorded on assets held for sale during the three months ended January 31, 2016. |
OFFICE AND MINING EQUIPMENT
OFFICE AND MINING EQUIPMENT | 3 Months Ended |
Jan. 31, 2016 | |
OFFICE AND MINING EQUIPMENT [Abstract] | |
OFFICE AND MINING EQUIPMENT | NOTE 8 – OFFICE AND MINING EQUIPMENT The following is a summary of the Company’s office and mining equipment at January 31, 2016 and October 31, 2015, respectively: January 31, October 31, 2016 2015 Mining equipment $ 246,615 $ 504,451 Vehicles 53,451 81,261 Buildings and structures 182,436 191,966 Computer equipment and software 83,701 83,701 Well equipment 39,637 39,637 Office equipment 52,931 52,931 658,771 953,947 Less: Accumulated depreciation (411,201 ) (648,333 ) Office and mining equipment, net $ 247,570 $ 305,614 |
PROPERTY CONCESSIONS
PROPERTY CONCESSIONS | 3 Months Ended |
Jan. 31, 2016 | |
PROPERTY CONCESSIONS [Abstract] | |
PROPERTY CONCESSIONS | NOTE 9 – PROPERTY CONCESSIONS The following is a summary of the Company’s property concessions in Sierra Mojada, Mexico as at January 31, 2016 and October 31, 2015, respectively: Property concessions – October 31, 2015 $ 5,593,263 Impairment (30,170 ) Property concessions – January 31, 2016 $ 5,563,093 During the three months ended January 31, 2016, the Company decided to reduce the Company’s concession holdings in Sierra Mojada, Mexico. As a result, the Company has written off the capitalized property concession balance related to these concessions of $30,170. |
GOODWILL
GOODWILL | 3 Months Ended |
Jan. 31, 2016 | |
GOODWILL [Abstract] | |
GOODWILL | NOTE 10 – 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 January 31, 2016. 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 30 th of each fiscal year. The following is a summary of the Company’s goodwill balance as at January 31, 2016 and October 31, 2015, respectively: Goodwill – October 31, 2015 $ 2,058,031 Goodwill – January 31, 2016 $ 2,058,031 |
ACCRUED LIABILITIES AND EXPENSE
ACCRUED LIABILITIES AND EXPENSES | 3 Months Ended |
Jan. 31, 2016 | |
ACCRUED LIABILITIES AND EXPENSES [Abstract] | |
ACCRUED LIABILITIES AND EXPENSES | NOTE 11 – ACCRUED LIABILITIES AND EXPENSES The Company financed an insurance premium at an interest rate of 7.99%. The insurance premium finance agreement has a maturity of less than one year and has a balance of $43,500 which is included in accrued liabilities and expenses at January 31, 2016. |
SHAREHOLDER RIGHTS PLAN
SHAREHOLDER RIGHTS PLAN | 3 Months Ended |
Jan. 31, 2016 | |
SHAREHOLDER RIGHTS PLAN [Abstract] | |
SHAREHOLDER RIGHTS PLAN | NOTE 12 – SHAREHOLDER RIGHTS PLAN On June 11, 2007, the board of directors adopted a shareholders’ right plan through the adoption of a Rights Agreement, which became effective immediately. In connection with the adoption of the Rights Agreement, the board of directors declared a distribution of one common stock purchase right (a “Right”) In certain circumstances, in the event that any person acquires beneficial ownership of 20% or more of the outstanding stock of the Company’s common stock, each holder of a Right, other than the acquirer, would be entitled to receive, upon payment of the purchase price, which is initially set at $20 per Right, a number of shares of the Company’s common stock having a value equal to two times such purchase price. The Rights will expire on June 11, 2017. |
COMMON STOCK
COMMON STOCK | 3 Months Ended |
Jan. 31, 2016 | |
COMMON STOCK [Abstract] | |
COMMON STOCK | NOTE 13 – No common stock was issued during the three months ended January 31, 2016 and January 31, 2015. |
STOCK OPTIONS
STOCK OPTIONS | 3 Months Ended |
Jan. 31, 2016 | |
STOCK OPTIONS [Abstract] | |
STOCK OPTIONS | NOTE 14 – 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 shares of common stock. Under the 2010 Stock Option and Stock Bonus Plan (the “2010 Plan”), the lesser of (i) 30,000,000 shares or (ii) 10% of the total shares outstanding are reserved for issuance upon the exercise of options or the grant of stock bonuses. 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 years. No options were granted or exercised during the three months ended January 31, 2016 and January 31, 2015. The following is a summary of stock option activity for the three months ended January 31, 2016: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at October 31, 2015 8,657,858 $ 0.46 2.36 $ — Outstanding at January 31, 2016 8,657,858 $ 0.46 2.10 $ — Exercisable at January 31, 2016 8,182,859 $ 0.47 2.02 $ — The Company recognized stock-based compensation costs for stock options of $6,005 and $31,189 for the three months ended January 31, 2016 and 2015, respectively. The Company typically does not recognize any tax benefits for stock options due to the Company’s recurring losses. The Company currently expects all 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 January 31, 2016 is as follows: Options Outstanding Options Exercisable Exercise Price Number Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise $ 0.26 2,650,000 3.37 $ 0.26 2,175,001 $ 0.26 0.37 1,785,000 2.40 0.37 1,785,000 0.37 0.44 – 0.70 3,580,000 1.37 0.53 3,580,000 0.53 1.05 – 1.12 600,000 0.04 1.09 600,000 1.09 2.18 42,858 1.97 2.18 42,858 2.18 $ 0.26 - 2.18 8,657,858 2.10 $ 0.46 8,182,859 $ 0.47 As of January 31, 2016, there was $14,012 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 0.33 years. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Jan. 31, 2016 | |
FINANCIAL INSTRUMENTS [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 15 – 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 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 January 31, 2016 and October 31, 2015 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 and $CDN cash deposits held in Canada are insured by the Canada Deposit Insurance Corporation (“CDIC”) for up to $CDN 100,000. 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 January 31, 2016 and October 31, 2015, the Company’s cash and cash equivalent balances held in United States and Canadian financial institutions included $504,463 and $854,979 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 January 31, 2016 and October 31, 2015, the U.S. dollar equivalent balance for these accounts was $9,584 and $19,393, 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 three months ended January 31, 2016, a 1% decrease in interest rates would have resulted in a reduction of approximately $88 in interest income for the period. Foreign Currency Exchange Risk Certain purchases of labor, operating supplies and capital assets are denominated in $CDN, Mexican Pesos (“$MXN”), Central African Francs (“$CFA”) or other currencies. As a result, currency exchange fluctuations may impact the costs of the Company’s 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 January 31, 2016, 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 | 3 Months Ended |
Jan. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 – 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 option 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 (two concessions) Payment Date Payment Amount (1) Monthly payment beginning August 2016 and ending July 2018 $20,000 per month (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 of the Company 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. Royalty The Company has agreed to pay a 2% net smelter return royalty on certain property concessions within the Sierra Mojada property based on revenues generated from production. Total payments under this royalty are limited to $6.875 million (the “Royalty”). Litigation and Claims On May 20, 2014 a local cooperative named Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (“Mineros Norteños”) filed an action (the “Action”) in the Local First Civil Court in the District of Morelos, State of Chihuahua, Mexico, against the Company’s subsidiary, Minera Metalin, claiming that the Company breached an agreement regarding the development of the Sierra Mojada project. On January 19, 2015, the case was moved to the Second District Court (of federal jurisdiction). Mineros Norteños is seeking payment of the Royalty, including interest at a rate of 6% per annum since August 30, 2004, notwithstanding that no revenue has been produced from the applicable mining concessions, and it is also seeking payment of wages to the cooperative’s members since August 30, 2004, notwithstanding that none of the individuals were ever hired or performed work for the Company. The Company and the Company’s Mexican legal counsel believe that this claim is without merit and have asserted all applicable defenses. All necessary testimony and evidence has been produced before the court and the Company expects to receive the final judgment of the court prior to the end of the third quarter. The Company has not accrued any amounts in its unaudited interim condensed consolidated 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-year office lease agreement from April 1, 2012 to March 31, 2017 for the Company’s corporate office in Vancouver, Canada. The monthly lease payment is $CDN 7,743 until March 31, 2016, increasing to $CDN 7,981 on April 1, 2016. The lease payments remaining during fiscal 2016 and during fiscal 2017 are $CDN 71,353 and $CDN 39,905. As of January 31, 2016, one U.S. dollar approximates $CDN 1.40. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Jan. 31, 2016 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | NOTE 17 – 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. Geographic information is approximately For the Three Months Ended January 31, 2016 2015 Mexico $ (162,000 ) $ (287,000 ) Canada (303,000 ) (474,000 ) Gabon — (100,000 ) Loss from Continuing Operations (465,000 ) (861,000 ) Discontinued Operations — 137,000 Net Loss $ (465,000 ) $ (724,000 ) The following table details allocation of assets included in the accompanying balance sheet at January 31, 2016: Canada Mexico Gabon Total Cash and cash equivalents $ 575,000 $ 9,000 $ 1,000 $ 585,000 Value-added tax receivable, net - 119,000 - 119,000 Other receivables 7,000 8,000 - 15,000 Prepaid expenses and deposits 79,000 28,000 1,000 108,000 Assets held for sale - 37,000 - 37,000 Office and mining equipment, net - 248,000 - 248,000 Property concessions - 5,563,000 - 5,563,000 Goodwill - 2,058,000 - 2,058,000 $ 661,000 $ 8,070,000 $ 2,000 $ 8,733,000 The following table details allocation of assets included in the accompanying balance sheet at October 31, 2015: Canada Mexico Gabon Total Cash and cash equivalents $ 932,000 $ 18,000 $ 1,000 $ 951,000 Value-added tax receivable, net - 132,000 - 132,000 Other receivables 10,000 11,000 - 21,000 Prepaid expenses and deposits 104,000 30,000 1,000 135,000 Office and mining equipment, net - 306,000 - 306,000 Property concessions - 5,593,000 - 5,593,000 Goodwill - 2,058,000 - 2,058,000 $ 1,046,000 $ 8,148,000 $ 2,000 $ 9,196,000 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 Three Months Ended January 31, 2016 2015 Exploration and property holding costs for the period Mexico Sierra Mojada $ (157,000 ) $ (273,000 ) Gabon Mitzic — (17,000 ) $ (157,000 ) $ (290,000 ) |
SIGNIFICANT ACCOUNTING POLICI24
SIGNIFICANT ACCOUNTING POLICIES (Policy) | 3 Months Ended |
Jan. 31, 2016 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in the Three-Month Period Ended January 31, 2016 Effective November 1, 2015 the Company adopted Accounting Standards Update (“ Recent Accounting Pronouncements Not Yet Adopted In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities,” which (i) requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, (ii) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (iii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and (iv) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes become effective for the Company’s fiscal year beginning November 1, 2018. 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. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. These changes become effective for the Company’s fiscal year beginning November 1, 2017. Early application is permitted. The Company has not determined the effects of this update on the Company’s financial position, and disclosures at this time. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. These changes become effective 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 August 2015, the FASB issued ASU 2015-14, “Deferral of the Effective Date,” which defers the effective date of ASU 2014-09, “Revenue from Contracts with Customers” to become effective for the Company’s fiscal year beginning November 1, 2018. 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 July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which provides a revised, simpler measurement for inventory to be measured at the lower of cost and net realizable value. These changes become effective for the Company’s fiscal year beginning November 1, 2017. 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 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires that debt issuance costs related to a recognized debt liability be presented as a reduction to the carrying amount of that debt liability, not as an asset. 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 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 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 update 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 the Company’s fiscal year and interim periods within those years beginning after November 1, 2017. 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) | 3 Months Ended |
Jan. 31, 2016 | |
DISCONTINUED OPERATIONS [Abstract] | |
Schedule of Financial Information Included in Income and Balance Sheet from Discontinued Operations | For the Three Months Ended January 31, 2016 2015 Exploration and property holding costs — 85,542 Depreciation and asset impairment — 3,305 Foreign currency transaction loss — 70,430 Gain on sale of discontinued operations, net of taxes — (296,369 ) Income from discontinued operations, net of income taxes $ — $ (137,092 ) |
VALUE-ADDED TAX RECEIVABLE (Tab
VALUE-ADDED TAX RECEIVABLE (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
VALUE-ADDED TAX RECEIVABLE [Abstract] | |
Summary of the Changes in the Allowance for Uncollectible Taxes | Allowance for uncollectible VAT taxes – October 31, 2015 $ 103,429 Provision for uncollectible VAT taxes 293 Foreign currency translation adjustment (8,971 ) Write-off VAT receivable (402 ) Allowance for uncollectible VAT taxes – January 31, 2016 $ 94,349 |
OFFICE AND MINING EQUIPMENT (Ta
OFFICE AND MINING EQUIPMENT (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
OFFICE AND MINING EQUIPMENT [Abstract] | |
Summary of Office and Mining Equipment | January 31, October 31, 2016 2015 Mining equipment $ 246,615 $ 504,451 Vehicles 53,451 81,261 Buildings and structures 182,436 191,966 Computer equipment and software 83,701 83,701 Well equipment 39,637 39,637 Office equipment 52,931 52,931 658,771 953,947 Less: Accumulated depreciation (411,201 ) (648,333 ) Office and mining equipment, net $ 247,570 $ 305,614 |
PROPERTY CONCESSIONS (Tables)
PROPERTY CONCESSIONS (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
PROPERTY CONCESSIONS [Abstract] | |
Summary of Property Concessions | Property concessions – October 31, 2015 $ 5,593,263 Impairment (30,170 ) Property concessions – January 31, 2016 $ 5,563,093 |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
GOODWILL [Abstract] | |
Summary of the Goodwill Balance | Goodwill – October 31, 2015 $ 2,058,031 Goodwill – January 31, 2016 $ 2,058,031 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
STOCK OPTIONS [Abstract] | |
Schedule of Stock Option Activity | Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at October 31, 2015 8,657,858 $ 0.46 2.10 $ — Outstanding at January 31, 2016 8,657,858 $ 0.46 2.10 $ — Exercisable at January 31, 2016 8,182,859 $ 0.47 2.02 $ — |
Schedule of Stock Options Outstanding and Exercisable by Exercise Price Range | Options Outstanding Options Exercisable Exercise Price Number Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise $ 0.26 2,650,000 3.37 $ 0.26 2,175,001 $ 0.26 0.37 1,785,000 2.40 0.37 1,785,000 0.37 0.44 – 0.70 3,580,000 1.37 0.53 3,580,000 0.53 1.05 – 1.12 600,000 0.04 1.09 600,000 1.09 2.18 42,858 1.97 2.18 42,858 2.18 $ 0.26 - 2.18 8,657,858 2.10 $ 0.46 8,182,859 $ 0.47 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of Payments Required to Obtain Full Ownership of Property Concessions | Nuevo Dulces Nombres (Centenario) and Yolanda III (two concessions) Payment Date Payment Amount (1) Monthly payment beginning August 2016 and ending July 2018 $20,000 per month (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 of the Company 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 (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
SEGMENT INFORMATION [Abstract] | |
Schedule of Net Income (Loss) by Segment | For the Three Months Ended January 31, 2016 2015 Mexico $ (162,000 ) $ (287,000 ) Canada (303,000 ) (474,000 ) Gabon — (100,000 ) Loss from Continuing Operations (465,000 ) (861,000 ) Discontinued Operations — 137,000 Net Loss $ (465,000 ) $ (724,000 ) |
Schedule of the Allocation of Assets by Segment | The following table details allocation of assets included in the accompanying balance sheet at January 31, 2016: Canada Mexico Gabon Total Cash and cash equivalents $ 575,000 $ 9,000 $ 1,000 $ 585,000 Value-added tax receivable, net - 119,000 - 119,000 Other receivables 7,000 8,000 - 15,000 Prepaid expenses and deposits 79,000 28,000 1,000 108,000 Assets held for sale - 37,000 - 37,000 Office and mining equipment, net - 248,000 - 248,000 Property concessions - 5,563,000 - 5,563,000 Goodwill - 2,058,000 - 2,058,000 $ 661,000 $ 8,070,000 $ 2,000 $ 8,733,000 The following table details allocation of assets included in the accompanying balance sheet at October 31, 2015: Canada Mexico Gabon Total Cash and cash equivalents $ 932,000 $ 18,000 $ 1,000 $ 951,000 Value-added tax receivable, net - 132,000 - 132,000 Other receivables 10,000 11,000 - 21,000 Prepaid expenses and deposits 104,000 30,000 1,000 135,000 Office and mining equipment, net - 306,000 - 306,000 Property concessions - 5,593,000 - 5,593,000 Goodwill - 2,058,000 - 2,058,000 $ 1,046,000 $ 8,148,000 $ 2,000 $ 9,196,000 |
Schedule of Exploration and Property Holding Costs by Segment | For the Three Months Ended January 31, 2016 2015 Exploration and property holding costs for the period Mexico Sierra Mojada $ (157,000 ) $ (273,000 ) Gabon Mitzic — (17,000 ) $ (157,000 ) $ (290,000 ) |
ORGANIZATION, DESCRIPTION OF 33
ORGANIZATION, DESCRIPTION OF BUSINESS AND LIQUIDITY (Details) - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
Accumulated Deficit | $ 118,512,069 | $ 118,046,936 |
Working capital | 462,049 | |
Cash and cash equivalents | $ 585,409 | $ 950,878 |
DISCONTINUED OPERATIONS (Narrat
DISCONTINUED OPERATIONS (Narrative) (Details) | Jan. 23, 2015USD ($) |
DISCONTINUED OPERATIONS [Abstract] | |
Ownership percentage held by entity | 100.00% |
Cash consideration | $ 1,500,000 |
Reimbursement expenses | 75,000 |
Transaction costs | $ 201,154 |
DISCONTINUED OPERATIONS (Schedu
DISCONTINUED OPERATIONS (Schedule of Financial Information Included in Income from Discontinued Operations) (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
DISCONTINUED OPERATIONS [Abstract] | ||
Exploration and property holding costs | $ 85,542 | |
Depreciation and asset impairment | 3,305 | |
Foreign currency transaction loss | 70,430 | |
Gain on sale of discontinued operations, net of taxes | (296,369) | |
Income from discontinued operations, net of income taxes | $ (137,092) |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - shares | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
LOSS PER SHARE [Abstract] | ||
Anti-dilutive shares, stock options and warrants | 8,657,858 | 11,288,808 |
VALUE-ADDED TAX RECEIVABLE (Nar
VALUE-ADDED TAX RECEIVABLE (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | |
VALUE-ADDED TAX RECEIVABLE [Abstract] | |||
Value-added tax receivable, current | $ 118,798 | $ 132,207 | |
Recovery of uncollectible value-added taxes | $ 293 | $ (250) |
VALUE-ADDED TAX RECEIVABLE (Sum
VALUE-ADDED TAX RECEIVABLE (Summary of the Changes in the Allowance for Uncollectible Taxes) (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
VALUE-ADDED TAX RECEIVABLE [Abstract] | ||
Allowance for uncollectible VAT taxes, beginning balance | $ 103,429 | $ 116,274 |
Provision for uncollectible VAT Taxes | 293 | (250) |
Foreign currency translation adjustment | (8,971) | |
Write-off VAT receivable | (402) | |
Allowance for uncollectible VAT taxes, ending balance | $ 94,349 | $ 106,077 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Oct. 31, 2015 | |
ASSETS HELD FOR SALE [Abstract] | ||
Assets held for sale | $ 37,494 | |
Impairment of assets held for sale | $ 7,554 |
OFFICE AND MINING EQUIPMENT (De
OFFICE AND MINING EQUIPMENT (Details) - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | $ 658,771 | $ 953,947 |
Less: Accumulated depreciation | (411,201) | (648,333) |
Office and mining equipment, net | 247,570 | 305,614 |
Mining equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 246,615 | 504,451 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 53,451 | 81,261 |
Building and structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 182,436 | 191,966 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 83,701 | 83,701 |
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) | 3 Months Ended |
Jan. 31, 2016USD ($) | |
PROPERTY CONCESSIONS [Abstract] | |
Property Concessions, beginning balance | $ 5,593,263 |
Impairment | (30,170) |
Property Concessions, ending balance | $ 5,563,093 |
GOODWILL (Narrative) (Details)
GOODWILL (Narrative) (Details) | 3 Months Ended |
Jan. 31, 2016USD ($) | |
GOODWILL [Abstract] | |
Goodwill impairment loss | $ 0 |
GOODWILL (Summary of the Goodwi
GOODWILL (Summary of the Goodwill Balance) (Details) - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
GOODWILL [Abstract] | ||
Goodwill | $ 2,058,031 | $ 2,058,031 |
ACCRUED LIABILITIES AND EXPEN44
ACCRUED LIABILITIES AND EXPENSES (Details) $ in Thousands | 3 Months Ended |
Jan. 31, 2016USD ($) | |
ACCRUED LIABILITIES AND EXPENSES [Abstract] | |
Insurance premium interest rate | 7.99% |
Insurance premium maturity period | 1 year |
Accrued liabilities and expenses | $ 435,000 |
SHAREHOLDER RIGHTS PLAN (Detail
SHAREHOLDER RIGHTS PLAN (Details) - $ / shares | 3 Months Ended | |
Jan. 31, 2016 | Oct. 31, 2015 | |
Class of Warrant or Right [Line Items] | ||
Common stock, shares outstanding | 159,072,657 | 159,072,657 |
Stock Appreciation Rights (SARs) [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, 2017 | |
Minimum purchase of ownership percentage to activate Rights | 20.00% | |
Purchase price per Right | $ 20 |
COMMON STOCK (Details)
COMMON STOCK (Details) - shares | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
COMMON STOCK [Abstract] | ||
Stock issued during period, shares | 0 | 0 |
STOCK OPTIONS (Narrative) (Deta
STOCK OPTIONS (Narrative) (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation costs recognized during the period | $ 6,005 | $ 31,189 |
Total unrecognized compensation costs related to non-vested share based compensation arrangements granted under qualified stock option plans | $ 14,012 | |
2006 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 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
The number of shares authorized under the plan | 30,000,000 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average period for remaining compensation costs to be recognized | 3 months 29 days | |
Employee Stock Option [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for plan | 1 year | |
Contractual term for options | 2 years | |
Employee Stock Option [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for plan | 2 years | |
Contractual term for options | 10 years |
STOCK OPTIONS (Summary of Stock
STOCK OPTIONS (Summary of Stock Option Activity) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jan. 31, 2016 | Oct. 31, 2015 | |
Shares | ||
Outstanding, beginning | 8,657,858 | |
Outstanding, ending | 8,657,858 | 8,657,858 |
Weighted Average Exercise Price | ||
Outstanding, beginning | $ 0.46 | |
Outstanding, ending | $ 0.46 | $ 0.46 |
Weighted average remaining contractual life, Outstanding | 2 years 1 month 6 days | 2 years 4 months 10 days |
Aggregate intrinsic value, Outstanding | ||
Exercisable | ||
Shares | 8,182,859 | |
Weighted average exercise price | $ 0.47 | |
Weighted average remaining contractual life, Exercisable | 2 years 7 days | |
Aggregate intrinsic value, Exercisable |
STOCK OPTIONS (Summarized Infor
STOCK OPTIONS (Summarized Information of Stock Options Outstanding and Exercisable) (Details) | 3 Months Ended |
Jan. 31, 2016$ / sharesshares | |
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 | shares | 8,657,858 |
Weighted Average Remaining Contractual Life (Years) | 2 years 1 month 6 days |
Weighted Average Exercise Price | $ 0.46 |
Number Exercisable | shares | 8,182,859 |
Options Exercisable - Weighted Average Exercise Price | $ 0.47 |
0.26 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | shares | 2,650,000 |
Weighted Average Remaining Contractual Life (Years) | 3 years 4 months 13 days |
Weighted Average Exercise Price | $ 0.26 |
Number Exercisable | shares | 2,175,001 |
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 | shares | 1,785,000 |
Weighted Average Remaining Contractual Life (Years) | 2 years 4 months 24 days |
Weighted Average Exercise Price | $ 0.37 |
Number Exercisable | shares | 1,785,000 |
Options Exercisable - Weighted Average Exercise Price | $ 0.37 |
0.44 - 0.70 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Minimum exercise price | 0.44 |
Maximum exercise price | $ 0.7 |
Number of options outstanding | shares | 3,580,000 |
Weighted Average Remaining Contractual Life (Years) | 1 year 4 months 13 days |
Weighted Average Exercise Price | $ 0.53 |
Number Exercisable | shares | 3,580,000 |
Options Exercisable - Weighted Average Exercise Price | $ 0.53 |
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 | shares | 600,000 |
Weighted Average Remaining Contractual Life (Years) | 15 days |
Weighted Average Exercise Price | $ 1.09 |
Number Exercisable | shares | 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 | shares | 42,858 |
Weighted Average Remaining Contractual Life (Years) | 1 year 11 months 19 days |
Weighted Average Exercise Price | $ 2.18 |
Number Exercisable | shares | 42,858 |
Options Exercisable - Weighted Average Exercise Price | $ 2.18 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Oct. 31, 2015 | |
Cash balance insured by FDIC per financial institution | $ 250,000 | |
Cash balance insured by CDIC per financial institution | 100,000 | |
Value of total cash accounts held in Mexico and Gabon | 9,584 | $ 19,393 |
Effect of a 1% decrease in interest rates on interest income | 88 | |
Canadian Dollars [Member] | ||
Cash balances not insured | 504,463 | 854,979 |
US Dollars [Member] | ||
Cash balances not insured | $ 504,463 | $ 854,979 |
COMMITMENTS AND CONTINGENCIES51
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 3 Months Ended |
Jan. 31, 2016CAD | |
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 | 1.4 |
Lease payment due in remainder of fiscal year 2016 | CAD 71,353 |
Lease payment due in fiscal year 2017 | CAD 39,905 |
Lease expiration | Mar. 31, 2017 |
Litigation and Claims: | |
Interest rate sought on the Royalty | 6.00% |
COMMITMENTS AND CONTINGENCIES52
COMMITMENTS AND CONTINGENCIES (Property Concessions) (Details) | 3 Months Ended |
Jan. 31, 2016USD ($) | |
Property Concessions By Location Of Concessions [Line Items] | |
Foreign currency exchange rate translation | 1.4 |
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 | $ 20,000 |
Payment required to obtain full ownership of property concessions, payment one | 30,000 |
Half yearly payment required to maintain acquisition option of concessions | $ 200,000 |
Payment date of first property concession payment | Aug. 1, 2016 |
Date the property acquisition option expires | Jul. 31, 2018 |
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 Property Concession [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 |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Segment Net Loss) (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Loss from Continuing Operations | $ (465,133) | $ (860,733) |
Discontinued Operations | 137,092 | |
Net loss | $ (465,133) | (723,641) |
Mexico [Member] | ||
Segment Reporting Information [Line Items] | ||
Loss from Continuing Operations | (162,000) | (287,000) |
Canada [Member] | ||
Segment Reporting Information [Line Items] | ||
Loss from Continuing Operations | $ (303,000) | (474,000) |
Gabon [Member] | ||
Segment Reporting Information [Line Items] | ||
Loss from Continuing Operations | $ (100,000) |
SEGMENT INFORMATION (Schedule54
SEGMENT INFORMATION (Schedule of Segment Assets) (Details) - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents | $ 585,409 | $ 950,878 |
Value-added tax receivable, current | 118,798 | 132,207 |
Other receivables | 15,101 | 18,400 |
Prepaid expenses and deposits | 107,841 | $ 135,421 |
Assets held for sale | 37,494 | |
Office and mining equipment, net | 247,570 | $ 305,614 |
Property concessions | 5,563,093 | 5,593,263 |
Goodwill | 2,058,031 | 2,058,031 |
TOTAL ASSETS | 8,733,337 | 9,196,410 |
Canada [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents | $ 575,000 | $ 932,000 |
Value-added tax receivable, current | ||
Other receivables | $ 7,000 | $ 10,000 |
Prepaid expenses and deposits | $ 79,000 | $ 140,000 |
Assets held for sale | ||
Office and mining equipment, net | ||
Property concessions | ||
Goodwill | ||
TOTAL ASSETS | $ 661,000 | $ 1,046,000 |
Mexico [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents | 9,000 | 18,000 |
Value-added tax receivable, current | 119,000 | 132,000 |
Other receivables | 8,000 | 11,000 |
Prepaid expenses and deposits | 28,000 | $ 30,000 |
Assets held for sale | 37,000 | |
Office and mining equipment, net | 248,000 | $ 306,000 |
Property concessions | 5,563,000 | 5,593,000 |
Goodwill | 2,058,000 | 2,058,000 |
TOTAL ASSETS | 8,070,000 | 8,148,000 |
Gabon [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents | $ 1,000 | $ 1,000 |
Value-added tax receivable, current | ||
Other receivables | ||
Prepaid expenses and deposits | $ 1,000 | $ 1,000 |
Assets held for sale | ||
Office and mining equipment, net | ||
Property concessions | ||
Goodwill | ||
TOTAL ASSETS | $ 2,000 | $ 2,000 |
SEGMENT INFORMATION (Schedule55
SEGMENT INFORMATION (Schedule of Segment Exploration and Property Holding Costs) (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Exploration and property holding costs for the period | $ (157,096) | $ (289,729) |
Mexico [Member] | ||
Segment Reporting Information [Line Items] | ||
Exploration and property holding costs for the period | $ (157,000) | (273,000) |
Mitzic, Gabon [Member] | ||
Segment Reporting Information [Line Items] | ||
Exploration and property holding costs for the period | $ (17,000) |