Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2017 | Sep. 12, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | 199,259,967 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jul. 31, 2017 | Oct. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents (Note 14) | $ 1,001,950 | $ 1,467,328 |
Value-added tax receivable, net of allowance for uncollectible taxes of $60,443 and $88,283 respectively (Note 5) | 167,731 | 117,276 |
Other receivables | 5,884 | 4,652 |
Prepaid expenses and deposits | 37,953 | 116,271 |
Assets held for sale (Note 6) | 21,283 | |
Total Current Assets | 1,213,518 | 1,726,810 |
Office and mining equipment, net (Note 7) | 219,537 | 226,301 |
Property concessions (Note 8) | 5,004,386 | 5,004,386 |
Goodwill (Note 9) | 2,058,031 | 2,058,031 |
TOTAL ASSETS | 8,495,472 | 9,015,528 |
CURRENT LIABILITIES | ||
Accounts payable | 200,735 | 133,274 |
Accrued liabilities and expenses | 195,692 | 334,297 |
Income tax payable | 3,239 | 10,623 |
Stock option liability | 341 | |
Warrant derivative liability (Note 13) | 191,002 | |
Total Current Liabilities | 591,009 | 478,194 |
COMMITMENTS AND CONTINGENCIES (Notes 1, 10 and 15) | ||
STOCKHOLDERS' EQUITY (Notes 10, 11, 12 and 13) | ||
Common stock, $0.01 par value; 300,000,000 shares authorized, 196,134,967 and 177,894,967 shares issued and outstanding, respectively | 1,961,349 | 1,778,949 |
Additional paid-in capital | 127,507,492 | 126,820,897 |
Accumulated deficit | (121,656,626) | (120,281,820) |
Other comprehensive income | 92,248 | 219,308 |
Total Stockholders' Equity | 7,904,463 | 8,537,334 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 8,495,472 | $ 9,015,528 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Jul. 31, 2017 | Oct. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for uncollectible taxes, current | $ 60,443 | $ 88,283 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 196,134,967 | 177,894,967 |
Common stock, shares outstanding | 196,134,967 | 177,894,967 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Statement [Abstract] | ||||
REVENUES | ||||
EXPLORATION AND PROPERTY HOLDING COSTS | ||||
Exploration and property holding costs | 117,231 | $ 179,253 | 674,006 | $ 383,836 |
Depreciation, asset and property concessions' impairment (Notes 6 and 8) | 7,384 | 566,510 | 28,047 | 624,640 |
TOTAL EXPLORATION AND PROPERTY HOLDING COSTS | 124,615 | 745,763 | 702,053 | 1,008,476 |
GENERAL AND ADMINISTRATIVE EXPENSES | ||||
Personnel | 119,165 | 113,866 | 390,899 | 329,788 |
Office and administrative | 109,051 | 139,192 | 278,228 | 322,934 |
Professional services | 23,257 | 24,847 | 144,462 | 191,958 |
Directors' fees | 41,044 | 33,411 | 135,021 | 102,162 |
(Recovery of) provision for uncollectible value-added taxes (Note 5) | (32,857) | 1,231 | (82,823) | 1,292 |
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 259,660 | 312,547 | 865,787 | 948,134 |
LOSS FROM OPERATIONS | (384,275) | (1,058,310) | (1,567,840) | (1,956,610) |
OTHER INCOME (EXPENSES) | ||||
Interest income | 870 | 148 | 2,774 | 729 |
Interest and finance costs | (664) | (715) | (2,252) | (2,143) |
Foreign currency transaction gain (loss) | 12,697 | (22,977) | 8,087 | (32,037) |
Change in fair value of stock option liability (Note 12) | 9,322 | 9,322 | ||
Change in fair value of warrant derivative liability (Note 13) | 65,587 | 65,587 | ||
Gain on liquidation of subsidiary (Note 1) | 129,781 | 129,781 | ||
Warrant issuance costs (Note 11) | (24,054) | (24,054) | ||
Miscellaneous income (Note 6) | 4,387 | 5,417 | 133,825 | |
TOTAL OTHER INCOME (EXPENSES) | 193,539 | (19,157) | 194,662 | 100,374 |
LOSS BEFORE INCOME TAXES | (190,736) | (1,077,467) | (1,373,178) | (1,856,236) |
INCOME TAX EXPENSE | 1,509 | 174 | 1,628 | 490 |
NET LOSS | (192,245) | (1,077,641) | (1,374,806) | (1,856,726) |
OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Foreign currency translation adjustments | (354) | 2,582 | 2,367 | (2,314) |
Realized foreign currency translation gain on liquidation of subsidiary | (129,427) | (129,427) | ||
COMPREHENSIVE LOSS | $ (322,026) | $ (1,075,059) | $ (1,501,866) | $ (1,859,040) |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.01) |
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (Note 4) | 182,058,445 | 166,757,070 | 179,298,044 | 161,652,825 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - 9 months ended Jul. 31, 2017 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Other Comprehensive Income [Member] | Total |
Balance at Oct. 31, 2016 | $ 1,778,949 | $ 126,820,897 | $ (120,281,820) | $ 219,308 | $ 8,537,334 |
Balance, shares at Oct. 31, 2016 | 177,894,967 | 177,894,967 | |||
Issuance of common stock as follows: for cash at a price of Canadian dollar ("$CDN") $0.08 per unit with attached warrants less offering costs of $136,307 (Note 11) | $ 182,400 | 644,372 | $ 826,772 | ||
Issuance of common stock as follows: for cash at a price of Canadian dollar ("$CDN") $0.08 per unit with attached warrants less offering costs of $136,307 (Note 11), (in shares) | 18,240,000 | 18,240,000 | |||
Stock option activity as follows: | |||||
Stock-based compensation for options issued to officers, employees and consultants | 117,953 | $ 117,953 | |||
Reclassification of warrants to derivative liability (Note 13) | (66,067) | (66,067) | |||
Reclassification of consultant stock options to liability | (9,663) | (9,663) | |||
Other comprehensive loss | (127,060) | (127,060) | |||
Net loss for the nine month period ended July 31, 2017 | (1,374,806) | (1,374,806) | |||
Balance at Jul. 31, 2017 | $ 1,961,349 | $ 127,507,492 | $ (121,656,626) | $ 92,248 | $ 7,904,463 |
Balance, shares at Jul. 31, 2017 | 196,134,967 | 196,134,967 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - 9 months ended Jul. 31, 2017 - Common Stock Issuance [Member] | USD ($) | CAD / shares |
Equity issuance, amount per share | CAD / shares | CAD 0.08 | |
Offering costs incurred | $ | $ 136,307 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,374,806) | $ (1,856,726) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation, asset and property concession's impairment | 28,047 | 624,640 |
(Recovery of) provision for uncollectible value-added taxes | (82,823) | 1,292 |
Gain on sale of office and mining equipment (Note 6) | (132,912) | |
Other income | (913) | |
Foreign currency transaction (gain) loss | (29,567) | 19,483 |
Change in fair value of warrant derivative liability (Note 13) | (65,587) | |
Change in fair value of stock option liability | (9,322) | |
Stock options issued for compensation | 117,953 | 74,877 |
Warrant issuance costs (Note 11) | 24,054 | |
Gain on liquidation of subsidiary (Note 1) | (129,781) | |
Changes in operating assets and liabilities: | ||
Value-added tax receivable | (12,268) | 4,695 |
Income tax receivable | 2,399 | |
Other receivables | (1,133) | 10,348 |
Prepaid expenses and deposits | 76,181 | 81,360 |
Accounts payable | 17,882 | 54,760 |
Accrued liabilities and expenses | (118,009) | 14,642 |
Income tax payable | (7,240) | (3,436) |
Net cash used in operating activities | (1,566,419) | (1,105,491) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of equipment | 141,285 | |
Net cash provided by investing activities | 141,285 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock and warrants, net of offering costs (Note 11) | 1,057,907 | 1,534,413 |
Net cash provided by financing activities | 1,057,907 | 1,534,413 |
Effect of exchange rates on cash and cash equivalents | 43,134 | (9,913) |
Net (decrease) increase in cash and cash equivalents | (465,378) | 560,294 |
Cash and cash equivalents, beginning of period | 1,467,328 | 950,878 |
Cash and cash equivalents, end of period | 1,001,950 | 1,511,172 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Income taxes paid | 8,642 | 4,848 |
Interest paid | 2,252 | 2,143 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Warrants issued for financing fees (Note 11) | 15,592 | 11,621 |
Offering costs included in accounts payable and accrued liabilities | $ 70,460 |
ORGANIZATION, DESCRIPTION OF BU
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN | 9 Months Ended |
Jul. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [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 21, 2011, the Company’s name was changed to Silver Bull Resources, Inc. 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 Metalin”) and Contratistas de Sierra Mojada S.A. de C.V. (“Contratistas”) and through Minera Metalin’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, Dome Minerals Nigeria Limited, incorporated in Nigeria. On May 15, 2017, the Company liquidated the Company’s Gabonese subsidiary, African Resources SARL Gabon. As a result of this liquidation, the Company recognized a gain on liquidation of subsidiary of $129,781 in the condensed consolidated statements of operations and comprehensive loss for the nine months ended July 31, 2017. The Company’s efforts and expenditures have been concentrated on the exploration of properties, principally 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 $121,656,626. 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, 2017, the Company had working capital of $622,509 and cash and cash equivalents of $1,001,950. 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. Accordingly, These 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. Such adjustments could be material. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jul. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 2 – BASIS OF PRESENTATION The Company’s 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 interim condensed consolidated balance sheet at October 31, 2016 was derived from the audited consolidated financial statements. Accordingly, these 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, 2016. The 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 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 interim condensed consolidated financial statements. Accordingly, operating results for the nine months ended July 31, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2017. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 31, 2017 | |
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, 2016 filed on January 19, 2017, except as follows. Warrant Derivative liability The Company classified warrants on its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance as the functional currency of Silver Bull is the U.S. Dollar and the exercise price of the warrants is the $CDN. The Company has used the Black-Scholes pricing model to value the warrants adjusted for the liquidity of the Company’s common stock, resale restrictions on shares to be received on exercise of the warrants and the acceleration feature for certain warrants whose expiry may be accelerated (Note 11). Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates used may cause the value to be higher or lower than that reported. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, is based on the historical volatility of the Company and the historical volatility of silver. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The derivative is not traded in an active market and the fair value is determined using valuation techniques. The estimates may be significantly different from those recorded in the consolidated financial statements because of the use of judgment and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market. All changes in the fair value are recorded in the consolidated statement of operations and comprehensive loss each reporting period. Recent Accounting Pronouncements Adopted in the Nine-Month Period Ended July 31, 2017 Effective February 1, 2017, the Company adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ Effective November 1, 2016, the Company adopted the FASB’s 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. Effective November 1, 2016 the Company adopted the FASB’s 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. Effective November 1, 2016 the Company adopted the FASB’s ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which amends the consolidation requirements in Accounting Standards Codification 810. Recent Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which clarifies the definition of a business to assist entities in the evaluation of acquisitions and disposals of assets or businesses. These changes become effective for the Company’s fiscal year beginning November 1, 2018. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which will require entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. These changes become effective for the Company’s fiscal year beginning November 1, 2018. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on the presentation and classification of certain cash receipts and payments in the statement of cash flows. These changes become effective for the Company’s fiscal year beginning November 1, 2018. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends several aspects of the accounting for share-based payment transactions, including income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. These changes become effective for the Company’s fiscal year beginning November 1, 2017. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases,” which will require lessees to recognize assets and liabilities for the rights and obligations created by most leases on the balance sheet. These changes become effective for the Company’s fiscal year beginning November 1, 2019. Modified retrospective adoption for all leases existing at, or entered into after, the date of initial application, is required with an option to use certain transition relief. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. In January 2016, the 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. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. 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. At this time, the Company has not determined the effects of this update on the Company’s financial position, and disclosures. 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. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the SEC did not or are not expected to have a material impact on the Company’s present or future interim condensed consolidated financial statements. |
LOSS PER SHARE
LOSS PER SHARE | 9 Months Ended |
Jul. 31, 2017 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 4 – LOSS PER SHARE The Company had stock options and warrants outstanding at July 31, 2017 and 2016 that upon exercise were issuable into 38,353,986 and 27,320,568 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 | 9 Months Ended |
Jul. 31, 2017 | |
VALUE-ADDED TAX RECEIVABLE [Abstract] | |
VALUE-ADDED TAX RECEIVABLE | NOTE 5 – VALUE-ADDED TAX RECEIVABLE Value-added tax (“VAT”) receivable relates to VAT paid in Mexico. The Company estimates net VAT of $167,731 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 estimated net recovery after commissions. During the nine months ended July 31, 2017, a recovery of VAT originating from Gabon of $52,951 and Mexico of $29,872 has been recorded in the condensed consolidated statements of operations and comprehensive loss. The allowance for uncollectible VAT taxes relates to Mexico. A summary of the changes in the allowance for uncollectible VAT taxes for the nine months ended July 31, 2017 is as follows: Allowance for uncollectible VAT taxes – October 31, 2016 $ 88,283 Recovery of VAT receivable allowance (29,872 ) Foreign currency translation adjustment 5,663 Write-off VAT receivable (3,631 ) Allowance for uncollectible VAT taxes – July 31, 2017 $ 60,443 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 9 Months Ended |
Jul. 31, 2017 | |
Asset Impairment Charges [Abstract] | |
ASSETS HELD FOR SALE | NOTE 6 – ASSETS HELD FOR SALE The Company classified certain office and mining equipment as assets held for sale as at October 31, 2016 as these assets were ready for immediate sale in their present condition, the assets were expected to be sold within one year and management had an active program to locate buyers for these assets. As at July 31, 2017, the Company reclassified $11,656 from assets held for sale to office and mining equipment as management no longer expected to sell these assets within one year. Impairments included in depreciation, asset and property concessions’ impairment of $4,354 and $7,554 were recorded on assets held for sale during the nine months ended July 31, 2017 and 2016, respectively. During the nine months ended July 31, 2017 and 2016, the Company recorded a gain on sale of office and mining equipment of $nil and $132,912, respectively, which is included in miscellaneous income in the condensed consolidated statements of operations and comprehensive loss. |
OFFICE AND MINING EQUIPMENT
OFFICE AND MINING EQUIPMENT | 9 Months Ended |
Jul. 31, 2017 | |
Property, Plant and 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, 2017 and October 31, 2016, respectively: July 31, October 31, 2017 2016 Mining equipment $ 358,515 $ 291,529 Vehicles 53,451 53,451 Buildings and structures 185,724 182,436 Computer equipment and software 74,236 83,701 Well equipment 39,637 39,637 Office equipment 47,597 52,931 759,160 703,685 Less: Accumulated depreciation (539,623 ) (477,384 ) Office and mining equipment, net $ 219,537 $ 226,301 |
PROPERTY CONCESSIONS
PROPERTY CONCESSIONS | 9 Months Ended |
Jul. 31, 2017 | |
PROPERTY CONCESSIONS [Abstract] | |
PROPERTY CONCESSIONS | NOTE 8 – PROPERTY CONCESSIONS The following is a summary of the Company’s property concessions for the Sierra Mojada Property as at July 31, 2017 and October 31, 2016: Property concessions – July 31, 2017 and October 31, 2016 $ 5,004,386 During the nine months ended July 31, 2016, the Company decided to reduce the Company’s concession holdings in the Sierra Mojada Property. As a result, the Company wrote off the capitalized property concession balance related to these concessions of $588,877. |
GOODWILL
GOODWILL | 9 Months Ended |
Jul. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 9 – GOODWILL Goodwill represents the excess, at the date of acquisition, of the purchase price of a business acquired over the fair value of the net tangible and intangible assets acquired. fair value of the reporting unit is less than its carrying amount. 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, 2017 and October 31, 2016: Goodwill – July 31, 2017 and October 31, 2016 $ 2,058,031 |
SHAREHOLDER RIGHTS PLAN
SHAREHOLDER RIGHTS PLAN | 9 Months Ended |
Jul. 31, 2017 | |
SHAREHOLDER RIGHTS PLAN [Abstract] | |
SHAREHOLDER RIGHTS PLAN | NOTE 10 – SHAREHOLDER RIGHTS PLAN On June 11, 2007, the board of directors adopted a shareholders’ rights 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 share of common stock purchase right (a “Right”) |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Jul. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | NOTE 11 – COMMON STOCK On July 10, 2017, the Company completed an initial tranche of a two tranche private placement for 18,240,000 units at a purchase price of $CDN 0.08 per unit (the “$CDN 0.08 Unit”) for gross proceeds of $1,132,216 ($CDN 1,459,200). Each $CDN 0.08 Unit consists of one share of the Company’s common stock and one warrant (the “$CDN 0.08 Warrant”). Each $CDN 0.08 Warrant entitles the holder thereof to acquire one share of common stock at a price of $CDN 0.13 for a period of 24 months from the closing of the private placement. The Company paid a 7% finder’s fee totaling $78,169 to agents with respect to certain purchasers who were introduced by these agents. In addition, the agents received 1,259,300 non-transferable warrants (the “2017 Agent’s Warrants”). Each 2017 Agent’s Warrant entitles the agents to acquire one share of common stock at a price of $CDN 0.10 for a period of 24 months from the closing of the private placement. The fair value of the 2017 Agent’s Warrants was determined to be $15,592 (Note 13), and the Company incurred other offering costs of $66,600. Of these costs $24,054 is included in warrant issuance costs in the condensed consolidated statements of operations and comprehensive loss. On May 19, 2016, June 3, 2016 and June 29, 2016, the Company completed a three tranche private placement for an aggregate of 11,362,310 units at a purchase price of $CDN 0.13 per unit (the “$CDN 0.13 Unit”) for aggregate gross proceeds of $1,137,643 ($CDN 1,477,100). Each $CDN 0.13 Unit consists of one share of the Company’s common stock and one warrant (the “$CDN 0.13 Warrant”). Each $CDN 0.13 Warrant entitles the holder thereof to acquire one share of common stock at a price of $CDN 0.16 for a period of 12 months from the closing of the tranche of the private placement. If the closing price of the common stock of the Company on the OTCQB Venture Marketplace is $0.18 or higher for five consecutive trading days, then the $CDN 0.13 Warrant will expire 30 trading days from such fifth consecutive day. The Company paid an 8% finder’s fee totaling $19,644 to certain agents with respect to certain purchasers who were introduced by these agents. The Company incurred other costs of $36,843 related to this private placement. On July 20, 2016, the Company completed a private placement of an aggregate of 4,340,000 units at a purchase price of $CDN 0.15 per unit (the “$CDN 0.15 Unit”) for aggregate gross proceeds of $504,729 ($CDN 651,000). Each $CDN 0.15 Unit consists of one share of the Company’s common stock and one warrant (the “$CDN 0.15 Warrant”). Each $CDN 0.15 Warrant entitles the holder thereof to acquire one share of common stock at a price of $CDN 0.16 for a period of 36 months from the closing of the private placement. If, commencing on the date that is four months after the closing of the private placement, the closing price of the common stock on the TSX is higher than $CDN 0.30 for 20 consecutive trading days, then on the 20th consecutive trading day (the “Acceleration Trigger Date”) the expiry date of the $CDN 0.15 Warrants may be accelerated to the 20th trading day after the Acceleration Trigger Date by the issuance, within three trading days of the Acceleration Trigger Date, of a news release announcing such acceleration. The Company paid a 6% finder’s fee totaling $23,326 to a placement agent with respect to certain purchasers who were introduced by this agent. In addition, the placement agent received 200,400 non-transferable warrants (the “Placement Agent’s Warrants”) . Each Placement Agent’s Warrant entitles the placement agent to acquire one share of common stock at a price of $CDN 0.205 for a period of 24 months from the closing of the private placement, subject to the acceleration provision noted above. The fair value of the Placement Agent’s Warrants was determined to be $11,621 (Note 13), and the Company incurred other offering costs of $28,146. |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Jul. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK OPTIONS | NOTE 12 – STOCK OPTIONS The Company has one active stock option plan, the 2010 Stock Option and Stock Bonus Plan, as amended (the “2010 Plan”). Under 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. Under the 2006 Stock Option Plan (the “2006 Plan”), the Company was permitted to grant non-statutory and incentive options to employees, directors and consultants for up to a total of 5,000,000 shares of common stock. However, as of May 1, 2016, no additional options may be issued under the 2006 Plan. 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. A summary of the range of assumptions used to value stock options granted for the nine months ended July 31, 2017 and 2016 are as follows: Nine Months Ended July 31, Options 2017 2016 Expected volatility 78% – 87% 65% – 70% Risk-free interest rate 1.35% – 1.56% 0.83% – 0.98% Dividend yield — — Expected term (in years) 2.50 – 3.50 2.50 – 3.50 During the nine months ended July 31, 2017, the Company granted options to acquire 4,075,000 shares of common stock with a weighted-average grant-date fair value of $0.05 per share and an exercise price of Canadian dollar (“$CDN”) 0.125 per share. No options were exercised during the nine months ended July 31, 2017. During the nine months ended July 31, 2016, the Company granted options to acquire 4,075,000 shares of common stock with a weighted-average grant-date fair value of $0.02 per share and an exercise price of $CDN 0.075 per share. No options were exercised during the nine months ended July 31, 2016. Certain of the Company’s stock options have been issued in $CDN. Of these, a portion have been classified as a stock option liability which is revalued at each reporting date. During the nine months ended July 31, 2017, the Company recognized a gain on change in fair value of stock option liability of $9,322 in the condensed consolidated statements of operations and comprehensive loss related to the revaluation of stock options classified as a stock option liability. The following is a summary of stock option activity for the nine months ended July 31, 2017: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at October 31, 2016 11,517,858 $ 0.28 2.66 $ 227,891 Granted 4,075,000 0.09 Expired (1,250,000 ) 0.53 Cancelled (28,572 ) 2.18 Outstanding at July 31, 2017 14,314,286 $ 0.20 2.90 $ 81,598 Exercisable at July 31, 2017 10,039,286 $ 0.25 2.32 $ 54,399 The Company recognized stock-based compensation costs for stock options of $117,953 and $74,877 for the nine months ended July 31, 2017 and 2016, respectively. As of July 31, 2017, there was $112,006 of total unrecognized compensation expense, which is expected to be recognized over a weighted average period of 0.63 years. Summarized information about stock options outstanding and exercisable at July 31, 2017 is as follows: Options Outstanding Options Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.06 4,075,000 3.57 $ 0.06 2,716,666 $ 0.06 0.10 4,075,000 4.68 0.10 1,358,334 0.10 0.20 – 0.26 2,625,000 2.30 0.25 2,425,000 0.26 0.37 1,705,000 0.90 0.37 1,705,000 0.37 0.50 1,820,000 0.22 0.50 1,820,000 0.50 2.18 14,286 0.47 2.18 14,286 2.18 $ 0.06 – 2.18 14,314,286 2.90 $ 0.20 10,039,286 $ 0.25 The following is a summary of the Company’s stock option liability at July 31, 2017 and October 31, 2016: Stock option liability at October 31, 2016: $ — Reclassification from additional paid-in capital 9,663 Change in fair value of stock option liability (9,322 ) Stock option liability at July 31, 2017 $ 341 |
WARRANTS
WARRANTS | 9 Months Ended |
Jul. 31, 2017 | |
Warrants and Rights Note Disclosure [Abstract] | |
WARRANTS | NOTE 13 – WARRANTS A summary of warrant activity for the nine months ended July 31, 2017 is as follows: Warrants Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding and exercisable at October 31, 2016 4,540,400 $ 0.12 2.67 $ — Issued in the $CDN 0.08 Unit private placement (Note 11) 18,240,000 $ 0.10 Agent’s Warrants (Note 11) 1,259,300 $ 0.08 Outstanding and exercisable at July 31, 2017 24,039,700 $ 0.11 1.94 $ — During the nine months ended July 31, 2017, the Company issued 18,240,000 warrants with an exercise price of $CDN 0.13 in connection with the $CDN 0.08 Unit private placement and issued 1,259,300 compensation warrants to agents with an exercise price of $CDN 0.10 (Note 11). The fair value of the warrants issued in the $CDN 0.08 Unit private placement was determined to be $169,136 based on the Black-Scholes pricing model using a risk-free interest rate of 1.4%, expected volatility of 59%, dividend yield of 0%, and a contractual term of two years adjusted for the liquidity of the Company’s common stock and resale restrictions on the shares to be received on exercise of the warrants. using a risk-free interest rate of 1.4%, expected volatility of 59%, dividend yield of 0%, and a contractual term of two years adjusted for the liquidity of the Company’s common stock and resale restrictions on the shares to be received on exercise of the warrants. None of these warrants were exercised during the nine months ended July 31, 2017. During the nine months ended July 31, 2016, the Company issued 11,362,310 warrants with an exercise price of $CDN 0.16 in connection with the $CDN 0.13 Unit private placement (Note 11). On August 5, 2016, the warrant expiry acceleration clause contained in the $CDN 0.13 Warrants was triggered following a period of five consecutive trading days in which the closing price of the common shares of the Company on the OTCQB Venture Marketplace was $0.18 or higher. In total, 11,362,310 $CDN 0.13 Warrants were accelerated with a new expiration date of September 19, 2016. On September 15, 2016, 2,500,000 warrants to acquire 2,500,000 shares of common stock were exercised at an exercise price of $CDN 0.16 per share of common stock for aggregate gross proceeds of $303,951 ($CDN 400,000). On September 19, 2016, 620,000 warrants to acquire 620,000 shares of common stock were exercised at an exercise price of $CDN 0.16 per common stock for aggregate gross proceeds of $75,112 ($CDN 99,200). During the nine months ended July 31, 2016, the Company issued 4,340,000 warrants with an exercise price of $CDN 0.16 in connection with the $CDN 0.15 Unit private placement and issued 200,400 compensation warrants to a placement agent with an exercise price of $CDN 0.205 (Note 11). The fair value of the warrants issued in the $CDN 0.16 Unit private placement is $54,446 using a risk-free interest rate of 0.86%, expected volatility of 52%, dividend yield of 0%, and a contractual term of three years adjusted for the liquidity of the Company’s common stock, resale restrictions on the shares to be received on exercise of the warrants and the acceleration feature of these warrants. using a risk-free interest rate of 0.73%, expected volatility of 89%, dividend yield of 0%, and a contractual term of two years. None of these warrants were exercised during the nine months ended July 31, 2016. The Company’s warrants have been recognized as a derivative liability. Summarized information about warrants outstanding and exercisable at July 31, 2017 is as follows: Warrants Outstanding and Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $ 0.08 1,259,300 1.95 $ 0.08 0.10 18,240,000 1.95 0.10 0.13 4,340,000 1.97 0.13 0.16 200,400 0.97 0.16 $ 0.08 – 0.16 24,039,700 1.94 $ 0.11 If the closing price of the common stock on the TSX is higher than $CDN 0.30 for 20 consecutive trading days, then on the 20th consecutive trading day (the "Acceleration Trigger Date") the expiry date of the above $0.13 and $0.16 warrants may be accelerated to the 20th trading day after the Acceleration Trigger Date by the issuance, within three trading days of the Acceleration Trigger Date, of a news release announcing such acceleration. The following is a summary of the Company’s warrant derivative liability at July 31, 2017 and October 31, 2016: Warrant derivative liability at October 31, 2016: $ — Reclassification from additional paid-in capital 66,067 Warrants issued in $CDN 0.08 Unit private placement 169,136 Agent’s warrants issued in $CDN 0.08 Unit private placement 15,592 Change in fair value of warrant derivative liability (65,587 ) Foreign currency translation adjustment 5,794 Warrant derivative liability at July 31, 2017 $ 191,002 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Jul. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 14 – FINANCIAL INSTRUMENTS Fair Value Measurements All financial assets and financial liabilities are recorded at fair value on initial recognition. Transaction costs are expensed when they are incurred, unless they are directly attributable to the acquisition of 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 cash and cash equivalents, and accounts payable approximate fair value at July 31, 2017 and October 31, 2016 due to the short maturities of these financial instruments. Derivative liability The Company classified warrants on its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance as the functional currency of Silver Bull is the U.S. Dollar and the exercise price of the warrants is the $CDN. The Company has used the Black-Scholes pricing model to value the warrants adjusted for the liquidity of the Company’s common stock, resale restrictions on shares to be received on exercise of the warrants and the acceleration feature for certain warrants whose expiry may be accelerated (Note 11). Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates used may cause the value to be higher or lower than that reported. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, is based on the historical volatility of the Company and the historical volatility of silver. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The derivative is not traded in an active market and the fair value is determined using valuation techniques. The estimates may be significantly different from those recorded in the consolidated financial statements because of the use of judgment and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market. All changes in the fair value are recorded in the consolidated statement of operations and comprehensive loss each reporting period. This is considered to be a Level 3 financial instrument. The Company has the following liabilities under the fair value hierarchy: July 31, 2017 Liability Level 1 Level 2 Level 3 Stock option liability $ — $ — $ 341 Warrant derivative liability $ — $ — $ 191,002 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 acceptable levels of creditworthiness. The Company maintains its U.S. dollar and Canadian dollar 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 Canadian dollar 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 relate to U.S. dollar deposits held in Canadian financial institutions. As of July 31, 2017, and October 31, 2016, the Company’s cash and cash equivalent balances held in United States and Canadian financial institutions included $915,398 and $1,375,673, respectively, which was not insured by the FDIC or CDIC, respectively. 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 to cash and cash equivalents. The Company also maintains cash in bank accounts in Mexico. These accounts are denominated in the local currency and are considered uninsured. As of July 31, 2017 and October 31, 2016, the U.S. dollar equivalent balance for these accounts was $6,362 and $17,010, respectively. Interest Rate Risk The Company holds substantially all of its 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, 2017, a 1% decrease in interest rates would have resulted in a reduction of approximately $1,514 in interest income for the period. Foreign Currency Exchange Risk The Company is not subject to any material market risk related to foreign currency exchange rate fluctuations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 – 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. Royalty The Company has agreed to pay a 2% net smelter return royalty on certain property concessions within the Sierra Mojada Property based on the revenue 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 in the Local First Civil Court in the District of Morelos, State of Chihuahua, Mexico, against the Company’s subsidiary, Minera Metalin, claiming that Minera Metalin breached an agreement regarding the development of the Sierra Mojada Property. On January 19, 2015, the case was moved to the Third 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, even though no revenue has been produced from the applicable mining concessions. It is also seeking payment of wages to the cooperative’s members since August 30, 2004, even though none of the individuals were ever hired or performed work for Minera Metalin under this agreement and Minera Metalin never committed to hiring them. 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 a final judgment by the trial court in Chihuahua by the fourth calendar quarter of 2017. consolidated financial statements with respect to this claim. On February 15, 2016, Messrs. Jaime Valdez Farias and Maria Asuncion Perez Alonso (collectively, “Valdez”) filed an action before the Local First Civil Court of Torreon, State of Coahuila, Mexico, against the Company’s subsidiary, Minera Metalin, claiming that Minera Metalin had breached an agreement regarding the development of the Sierra Mojada Property. Valdez sought payment in the amount of $5.9 million for the alleged breach of the agreement. On April 28, 2016, Minera Metalin filed its response to the complaint, asserting various defenses, including that Minera Metalin terminated the agreement before the payment obligations arose and that certain conditions precedent to such payment obligations were never satisfied by Valdez. All means of evidence were submitted to the Court. , a final judgment was entered finding for us, the defendant, acquitting us of all of the plaintiff’s claims and demands. The Company did not accrue any amounts in its 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jul. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 16 – 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 For the Nine Months Ended July 31, July 31, 2017 2016 2017 2016 Mexico $ (86,000 ) $ (755,000 ) $ (693,000 ) $ (880,000 ) Canada (233,000 ) (323,000 ) (895,000 ) (968,000 ) Gabon 127,000 - 213,000 (9,000 ) Net Loss $ (192,000 ) $ (1,078,000 ) $ (1,375,000 ) $ (1,857,000 ) The following table details the allocation of assets included in the accompanying balance sheet at July 31, 2017: Canada Mexico Total Cash and cash equivalents $ 996,000 $ 6,000 $ 1,002,000 Value-added tax receivable, net - 167,000 167,000 Other receivables 4,000 2,000 6,000 Prepaid expenses and deposits 20,000 18,000 38,000 Office and mining equipment, net - 220,000 220,000 Property concessions - 5,004,000 5,004,000 Goodwill - 2,058,000 2,058,000 $ 1,020,000 $ 7,475,000 $ 8,495,000 The following table details the allocation of assets included in the accompanying balance sheet at October 31, 2016: Canada Mexico Total Cash and cash equivalents $ 1,450,000 $ 17,000 $ 1,467,000 Value-added tax receivable, net - 117,000 117,000 Other receivables 3,000 2,000 5,000 Prepaid expenses and deposits 93,000 23,000 116,000 Assets held for sale - 21,000 21,000 Office and mining equipment, net - 226,000 226,000 Property concessions - 5,005,000 5,005,000 Goodwill - 2,058,000 2,058,000 $ 1,546,000 $ 7,469,000 $ 9,015,000 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. The Mexican government does not require foreign entities to maintain cash reserves in Mexico. The following table details the allocation of exploration and property holding costs for the exploration properties: For the Three Months Ended For the Nine Months Ended July 31, July 31, 2017 2016 2017 2016 Exploration and property holding (costs) recovery for the period Mexico Sierra Mojada $ (123,000 ) $ (746,000 ) $ (733,000 ) $ (998,000 ) Gabon Mitzic (2,000 ) - 31,000 (10,000 ) $ (125,000 ) $ (746,000 ) $ (702,000 ) $ (1,008,000 ) |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Jul. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 17 – SUBSEQUENT EVENT On August 3, 2017, the Company completed a second and final tranche of the $CDN 0.08 Unit (Note 11) private placement for 3,125,000 units for gross proceeds of $198,760 ($CDN 250,000). |
SIGNIFICANT ACCOUNTING POLICI25
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jul. 31, 2017 | |
Accounting Policies [Abstract] | |
Warrant Derivative liability | Warrant Derivative liability The Company classified warrants on its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance as the functional currency of Silver Bull is the U.S. Dollar and the exercise price of the warrants is the $CDN. The Company has used the Black-Scholes pricing model to value the warrants adjusted for the liquidity of the Company’s common stock, resale restrictions on shares to be received on exercise of the warrants and the acceleration feature for certain warrants whose expiry may be accelerated (Note 11). Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates used may cause the value to be higher or lower than that reported. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, is based on the historical volatility of the Company and the historical volatility of silver. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The derivative is not traded in an active market and the fair value is determined using valuation techniques. The estimates may be significantly different from those recorded in the consolidated financial statements because of the use of judgment and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market. All changes in the fair value are recorded in the consolidated statement of operations and comprehensive loss each reporting period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in the Nine-Month Period Ended July 31, 2017 Effective February 1, 2017, the Company adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ Effective November 1, 2016, the Company adopted the FASB’s 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. Effective November 1, 2016 the Company adopted the FASB’s 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. Effective November 1, 2016 the Company adopted the FASB’s ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which amends the consolidation requirements in Accounting Standards Codification 810. Recent Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which clarifies the definition of a business to assist entities in the evaluation of acquisitions and disposals of assets or businesses. These changes become effective for the Company’s fiscal year beginning November 1, 2018. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which will require entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. These changes become effective for the Company’s fiscal year beginning November 1, 2018. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on the presentation and classification of certain cash receipts and payments in the statement of cash flows. These changes become effective for the Company’s fiscal year beginning November 1, 2018. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends several aspects of the accounting for share-based payment transactions, including income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. These changes become effective for the Company’s fiscal year beginning November 1, 2017. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases,” which will require lessees to recognize assets and liabilities for the rights and obligations created by most leases on the balance sheet. These changes become effective for the Company’s fiscal year beginning November 1, 2019. Modified retrospective adoption for all leases existing at, or entered into after, the date of initial application, is required with an option to use certain transition relief. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. In January 2016, the 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. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. 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. At this time, the Company has not determined the effects of this update on the Company’s financial position, and disclosures. 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. At this time, the Company has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the SEC did not or are not expected to have a material impact on the Company’s present or future interim condensed consolidated financial statements. |
VALUE-ADDED TAX RECEIVABLE (Tab
VALUE-ADDED TAX RECEIVABLE (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
VALUE-ADDED TAX RECEIVABLE [Abstract] | |
Summary of the Changes in the Allowance for Uncollectible Taxes | A summary of the changes in the allowance for uncollectible VAT taxes for the nine months ended July 31, 2017 is as follows: Allowance for uncollectible VAT taxes – October 31, 2016 $ 88,283 Recovery of VAT receivable allowance (29,872 ) Foreign currency translation adjustment 5,663 Write-off VAT receivable (3,631 ) Allowance for uncollectible VAT taxes – July 31, 2017 $ 60,443 |
OFFICE AND MINING EQUIPMENT (Ta
OFFICE AND MINING EQUIPMENT (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Office and Mining Equipment | The following is a summary of the Company’s office and mining equipment at July 31, 2017 and October 31, 2016, respectively: July 31, October 31, 2017 2016 Mining equipment $ 358,515 $ 291,529 Vehicles 53,451 53,451 Buildings and structures 185,724 182,436 Computer equipment and software 74,236 83,701 Well equipment 39,637 39,637 Office equipment 47,597 52,931 759,160 703,685 Less: Accumulated depreciation (539,623 ) (477,384 ) Office and mining equipment, net $ 219,537 $ 226,301 |
PROPERTY CONCESSIONS (Tables)
PROPERTY CONCESSIONS (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
PROPERTY CONCESSIONS [Abstract] | |
Summary of Property Concessions | The following is a summary of the Company’s property concessions for the Sierra Mojada Property as at July 31, 2017 and October 31, 2016: Property concessions – July 31, 2017 and October 31, 2016 $ 5,004,386 |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Goodwill Balance | The following is a summary of the Company’s goodwill balance as at July 31, 2017 and October 31, 2016: Goodwill – July 31, 2017 and October 31, 2016 $ 2,058,031 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Assumptions Used to Value Stock Options Granted | A summary of the range of assumptions used to value stock options granted for the nine months ended July 31, 2017 and 2016 are as follows: Nine Months Ended July 31, Options 2017 2016 Expected volatility 78% – 87% 65% – 70% Risk-free interest rate 1.35% – 1.56% 0.83% – 0.98% Dividend yield — — Expected term (in years) 2.50 – 3.50 2.50 – 3.50 |
Schedule of Stock Option Activity | The following is a summary of stock option activity for the nine months ended July 31, 2017: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at October 31, 2016 11,517,858 $ 0.28 2.66 $ 227,891 Granted 4,075,000 0.09 Expired (1,250,000 ) 0.53 Cancelled (28,572 ) 2.18 Outstanding at July 31, 2017 14,314,286 $ 0.20 2.90 $ 81,598 Exercisable at July 31, 2017 10,039,286 $ 0.25 2.32 $ 54,399 |
Schedule of Stock Options Outstanding and Exercisable by Exercise Price Range | Summarized information about stock options outstanding and exercisable at July 31, 2017 is as follows: Options Outstanding Options Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.06 4,075,000 3.57 $ 0.06 2,716,666 $ 0.06 0.10 4,075,000 4.68 0.10 1,358,334 0.10 0.20 – 0.26 2,625,000 2.30 0.25 2,425,000 0.26 0.37 1,705,000 0.90 0.37 1,705,000 0.37 0.50 1,820,000 0.22 0.50 1,820,000 0.50 2.18 14,286 0.47 2.18 14,286 2.18 $ 0.06 – 2.18 14,314,286 2.90 $ 0.20 10,039,286 $ 0.25 |
Summary of Stock Option Liability | The following is a summary of the Company’s stock option liability at July 31, 2017 and October 31, 2016: Stock option liability at October 31, 2016: $ — Reclassification from additional paid-in capital 9,663 Change in fair value of stock option liability (9,322 ) Stock option liability at July 31, 2017 $ 341 |
WARRANTS (Tables)
WARRANTS (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Warrants and Rights Note Disclosure [Abstract] | |
Summary of Warrants Activity | A summary of warrant activity for the nine months ended July 31, 2017 is as follows: Warrants Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding and exercisable at October 31, 2016 4,540,400 $ 0.12 2.67 $ — Issued in the $CDN 0.08 Unit private placement (Note 11) 18,240,000 $ 0.10 Agent’s Warrants (Note 11) 1,259,300 $ 0.08 Outstanding and exercisable at July 31, 2017 24,039,700 $ 0.11 1.94 $ — |
Summary of Warrants Outstanding and Exercisable by Price Range | Summarized information about warrants outstanding and exercisable at July 31, 2017 is as follows: Warrants Outstanding and Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $ 0.08 1,259,300 1.95 $ 0.08 0.10 18,240,000 1.95 0.10 0.13 4,340,000 1.97 0.13 0.16 200,400 0.97 0.16 $ 0.08 – 0.16 24,039,700 1.94 $ 0.11 |
Summary of warrant derivative liability | The following is a summary of the Company’s warrant derivative liability at July 31, 2017 and October 31, 2016: Warrant derivative liability at October 31, 2016: $ — Reclassification from additional paid-in capital 66,067 Warrants issued in $CDN 0.08 Unit private placement 169,136 Agent’s warrants issued in $CDN 0.08 Unit private placement 15,592 Change in fair value of warrant derivative liability (65,587 ) Foreign currency translation adjustment 5,794 Warrant derivative liability at July 31, 2017 $ 191,002 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Financial Instruments Tables | |
Summary of derivative liability under fair value | The Company has the following liabilities under the fair value hierarchy: July 31, 2017 Liability Level 1 Level 2 Level 3 Stock option liability $ — $ — $ 341 Warrant derivative liability $ — $ — $ 191,002 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Net Income (Loss) by Segment | Geographic information is approximately For the Three Months Ended For the Nine Months Ended July 31, July 31, 2017 2016 2017 2016 Mexico $ (86,000 ) $ (755,000 ) $ (693,000 ) $ (880,000 ) Canada (233,000 ) (323,000 ) (895,000 ) (968,000 ) Gabon 127,000 - 213,000 (9,000 ) Net Loss $ (192,000 ) $ (1,078,000 ) $ (1,375,000 ) $ (1,857,000 ) |
Schedule of the Allocation of Assets by Segment | The following table details the allocation of assets included in the accompanying balance sheet at July 31, 2017: Canada Mexico Total Cash and cash equivalents $ 996,000 $ 6,000 $ 1,002,000 Value-added tax receivable, net - 167,000 167,000 Other receivables 4,000 2,000 6,000 Prepaid expenses and deposits 20,000 18,000 38,000 Office and mining equipment, net - 220,000 220,000 Property concessions - 5,004,000 5,004,000 Goodwill - 2,058,000 2,058,000 $ 1,020,000 $ 7,475,000 $ 8,495,000 The following table details the allocation of assets included in the accompanying balance sheet at October 31, 2016: Canada Mexico Total Cash and cash equivalents $ 1,450,000 $ 17,000 $ 1,467,000 Value-added tax receivable, net - 117,000 117,000 Other receivables 3,000 2,000 5,000 Prepaid expenses and deposits 93,000 23,000 116,000 Assets held for sale - 21,000 21,000 Office and mining equipment, net - 226,000 226,000 Property concessions - 5,005,000 5,005,000 Goodwill - 2,058,000 2,058,000 $ 1,546,000 $ 7,469,000 $ 9,015,000 |
Schedule of Exploration and Property Holding Costs by Segment | The following table details the allocation of exploration and property holding costs for the exploration properties: For the Three Months Ended For the Nine Months Ended July 31, July 31, 2017 2016 2017 2016 Exploration and property holding (costs) recovery for the period Mexico Sierra Mojada $ (123,000 ) $ (746,000 ) $ (733,000 ) $ (998,000 ) Gabon Mitzic (2,000 ) - 31,000 (10,000 ) $ (125,000 ) $ (746,000 ) $ (702,000 ) $ (1,008,000 ) |
ORGANIZATION, DESCRIPTION OF 34
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Accumulated Deficit | $ 121,656,626 | $ 121,656,626 | $ 120,281,820 | ||
Working capital | 622,509 | 622,509 | |||
Cash and cash equivalents | 1,001,950 | 1,001,950 | $ 1,467,328 | ||
Gain on liquidation of subsidiary | $ 129,781 | $ 129,781 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - shares | 9 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares, stock options and warrants | 38,353,986 | 27,320,568 |
VALUE-ADDED TAX RECEIVABLE (Nar
VALUE-ADDED TAX RECEIVABLE (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Value-added tax receivable, current | $ 167,731 | $ 110,550 | $ 167,731 | $ 110,550 | $ 117,276 |
(Recovery of) provision for uncollectible value-added taxes | (32,857) | $ 1,231 | (82,823) | $ 1,292 | |
Gabon [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
(Recovery of) provision for uncollectible value-added taxes | (52,951) | ||||
Mexico [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Value-added tax receivable, current | $ 167,000 | 167,000 | $ 117,000 | ||
(Recovery of) provision for uncollectible value-added taxes | $ (29,872) |
VALUE-ADDED TAX RECEIVABLE (Sum
VALUE-ADDED TAX RECEIVABLE (Summary of the Changes in the Allowance for Uncollectible Taxes) (Details) | 9 Months Ended |
Jul. 31, 2017USD ($) | |
VALUE-ADDED TAX RECEIVABLE [Abstract] | |
Allowance for uncollectible VAT taxes - October 31, 2016 | $ 88,283 |
Recovery of VAT receivable allowance | (29,872) |
Foreign currency translation adjustment | 5,663 |
Write-off VAT receivable | (3,631) |
Allowance for uncollectible VAT taxes - July 31, 2017 | $ 60,443 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Asset Impairment Charges [Abstract] | ||
Amount of assets held for sale reclassified to office and mining equipment | $ 11,656 | |
Impairment of assets held for sale | 4,354 | $ 7,554 |
Gain on sale of office and mining equipment | $ 132,912 |
OFFICE AND MINING EQUIPMENT (De
OFFICE AND MINING EQUIPMENT (Details) - USD ($) | Jul. 31, 2017 | Oct. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | $ 759,160 | $ 703,685 |
Less: Accumulated depreciation | (539,623) | (477,384) |
Office and mining equipment, net | 219,537 | 226,301 |
Mining equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 358,515 | 291,529 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 53,451 | 53,451 |
Building and structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 185,724 | 182,436 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 74,236 | 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 | $ 47,597 | $ 52,931 |
PROPERTY CONCESSIONS (Details)
PROPERTY CONCESSIONS (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2017 | Oct. 31, 2016 | |
PROPERTY CONCESSIONS [Abstract] | ||
Property concessions - July 31, 2017 and October 31, 2016 | $ 5,004,386 | $ 5,004,386 |
Property concession impairment | $ 588,877 |
GOODWILL (Summary of the Goodwi
GOODWILL (Summary of the Goodwill Balance) (Details) - USD ($) | Jul. 31, 2017 | Oct. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill - July 31, 2017 and October 31, 2016 | $ 2,058,031 | $ 2,058,031 |
SHAREHOLDER RIGHTS PLAN (Detail
SHAREHOLDER RIGHTS PLAN (Details) - Stock Appreciation Rights (SARs) [Member] | 9 Months Ended |
Jul. 31, 2017 | |
Class of Warrant or Right [Line Items] | |
Shareholder Rights, record date | Jun. 22, 2007 |
Expiration date of Shareholders Rights | Jun. 11, 2017 |
COMMON STOCK (Details)
COMMON STOCK (Details) | Jul. 10, 2017USD ($)shares | Oct. 31, 2016USD ($)shares | Jun. 29, 2016USD ($)$ / sharesshares | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Oct. 31, 2016USD ($)shares | Jul. 10, 2017CAD / shares | Jul. 20, 2016CAD / shares | Jun. 29, 2016CAD / shares |
Class of Stock [Line Items] | |||||||||
Proceeds from issuance of units | $ 1,057,907 | $ 1,534,413 | |||||||
Placement Agent's Warrants [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Description of units | Each 2017 Agent’s Warrant entitles the agents to acquire one share of common stock at a price of $CDN 0.10 for a period of 24 months from the closing of the private placement. | ||||||||
Number of warrants issued | shares | 1,259,300 | ||||||||
Fair value of warrants issued | $ 15,592 | $ 11,621 | $ 11,621 | ||||||
Warrant issuance cost | 24,054 | ||||||||
CDN [Member] | Placement Agent's Warrants [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Equity issuance, price per share | CAD / shares | CAD 0.10 | ||||||||
$CDN 0.13 Unit [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Units issued during period | shares | 11,362,310 | ||||||||
Equity issuance, price per share | $ / shares | $ 0.13 | ||||||||
Proceeds from issuance of units | $ 1,137,643 | ||||||||
Description of units | Each $CDN 0.13 Unit consists of one share of the Company's common stock and one warrant (the "$CDN 0.13 Warrant"). Each $CDN 0.13 Warrant entitles the holder thereof to acquire one share of common stock at a price of $CDN 0.16 for a period of 12 months from the closing of the tranche of the private placement. If the closing price of the common stock of the Company on the OTCQB Venture Marketplace is $0.18 or higher for five consecutive trading days then the $CDN 0.13 Warrant will expire 30 trading days from such fifth consecutive day. | ||||||||
Finders fee percentage rate paid to agents | 8.00% | ||||||||
Aggregate finders fee costs incurred | $ 19,644 | ||||||||
Offering costs incurred | $ 36,843 | ||||||||
$CDN 0.13 Unit [Member] | CDN [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Equity issuance, price per share | CAD / shares | CAD 0.13 | ||||||||
Proceeds from issuance of units | $ 1,459,200 | 651,000 | $ 1,477,100 | ||||||
$CDN 0.15 Unit [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Equity issuance, price per share | CAD / shares | CAD 0.15 | ||||||||
Proceeds from issuance of units | $ 504,729 | ||||||||
Description of units | Each $CDN 0.15 Warrant entitles the holder thereof to acquire one share of common stock at a price of $CDN 0.16 for a period of 36 months from the closing of the private placement. If, commencing on the date that is four months after the closing of the private placement, the closing price of the common stock on the TSX is higher than $CDN 0.30 for 20 consecutive trading days, then on the 20th consecutive trading day (the “Acceleration Trigger Date”) the expiry date of the $CDN 0.15 Warrants may be accelerated to the 20th trading day after the Acceleration Trigger Date by the issuance, within three trading days of the Acceleration Trigger Date, of a news release announcing such acceleration. | ||||||||
Finders fee percentage rate paid to agents | 6.00% | ||||||||
Aggregate finders fee costs incurred | $ 23,326 | ||||||||
Offering costs incurred | $ 28,146 | ||||||||
Number of warrants issued | shares | 4,340,000 | ||||||||
Fair value of warrants issued | 54,446 | ||||||||
$CDN 0.15 Unit [Member] | Placement Agent's Warrants [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of warrants issued | shares | 200,400 | ||||||||
Fair value of warrants issued | $ 11,621 | ||||||||
$CDN 0.08 Unit [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Units issued during period | shares | 18,240,000 | ||||||||
Equity issuance, price per share | CAD / shares | CAD 0.08 | ||||||||
Proceeds from issuance of units | $ 1,132,216 | ||||||||
Description of units | Each $CDN 0.08 Warrant entitles the holder thereof to acquire one share of common stock at a price of $CDN 0.13 for a period of 24 months from the closing of the private placement. | ||||||||
Finders fee percentage rate paid to agents | 7.00% | ||||||||
Aggregate finders fee costs incurred | $ 78,169 | ||||||||
Offering costs incurred | $ 66,600 | ||||||||
Fair value of warrants issued | 169,136 | ||||||||
$CDN 0.08 Unit [Member] | Placement Agent's Warrants [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Fair value of warrants issued | $ 15,592 |
STOCK OPTIONS (Narrative) (Deta
STOCK OPTIONS (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2017USD ($)shares | Jul. 31, 2016USD ($) | Jul. 31, 2017USD ($)$ / sharesshares | Jul. 31, 2017USD ($)CAD / sharesshares | Jul. 31, 2016USD ($)$ / sharesshares | Jul. 31, 2016CAD / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total options granted during the period | 4,075,000 | |||||
Stock-based compensation costs recognized during the period | $ | $ 117,953 | $ 74,877 | ||||
Total unrecognized compensation costs related to non-vested share based compensation arrangements granted under qualified stock option plans | $ | $ 112,006 | $ 112,006 | $ 112,006 | |||
Weighted-average period for remaining compensation costs to be recognized | 7 months 17 days | |||||
Exercise price of options granted | $ / shares | $ 0.09 | |||||
Change in fair value of stock option liability (Note 12) | $ | $ 9,322 | $ 9,322 | ||||
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 | 30,000,000 | 30,000,000 | |||
Shares outstanding reserved for issuance upon the exercise of options or the grant of stock bonuses percentage | 10.00% | 10.00% | 10.00% | |||
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 | 5,000,000 | 5,000,000 | |||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total options granted during the period | 4,075,000 | 4,075,000 | ||||
Weighted-average grant date fair value of options granted during period | $ / shares | $ 0.05 | $ 0.02 | ||||
Exercise price of options granted | CAD / shares | $ 0.125 | CAD 0.075 | ||||
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 (Schedule of Assu
STOCK OPTIONS (Schedule of Assumptions Used to Value Stock Options Granted) (Details) | 9 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 78.00% | 65.00% |
Expected volatility, maximum | 87.00% | 70.00% |
Risk-free interest rate, minimum | 1.35% | 0.83% |
Risk-free interest rate, maximum | 1.56% | 0.98% |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term | 2 years 6 months | 2 years 6 months |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term | 3 years 6 months | 3 years 6 months |
STOCK OPTIONS (Summary of Stock
STOCK OPTIONS (Summary of Stock Option Activity) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Jul. 31, 2017 | Oct. 31, 2016 | |
Shares | ||
Outstanding at October 31, 2016 | 11,517,858 | |
Granted | 4,075,000 | |
Expired | (1,250,000) | |
Cancelled | (28,572) | |
Outstanding at July 31, 2017 | 14,314,286 | 11,517,858 |
Outstanding at July 31, 2017 | 10,039,286 | |
Weighted Average Exercise Price | ||
Outstanding at October 31, 2016 | $ 0.28 | |
Granted | 0.09 | |
Expired | 0.53 | |
Cancelled | 2.18 | |
Outstanding at July 31, 2017 | 0.20 | $ 0.28 |
Outstanding at July 31, 2017 | $ 0.25 | |
Weighted average remaining contractual life, Outstanding | 2 years 10 months 25 days | 2 years 7 months 28 days |
Weighted average remaining contractual life, Exercisable | 2 years 3 months 26 days | |
Aggregate intrinsic value at October 31, 2016 | $ 227,981 | |
Aggregate intrinsic value at July 31, 2017 | 81,598 | $ 227,981 |
Aggregate intrinsic value, Exercisable | $ 54,399 |
STOCK OPTIONS (Summarized Infor
STOCK OPTIONS (Summarized Information of Stock Options Outstanding and Exercisable) (Details) | 9 Months Ended |
Jul. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Minimum exercise price | $ 0.06 |
Maximum exercise price | $ 2.18 |
Number of options outstanding | shares | 14,314,286 |
Weighted Average Remaining Contractual Life (Years) | 2 years 10 months 25 days |
Weighted Average Exercise Price | $ 0.20 |
Number Exercisable | shares | 10,039,286 |
Options Exercisable - Weighted Average Exercise Price | $ 0.25 |
0.06 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price | $ 0.06 |
Number of options outstanding | shares | 4,075,000 |
Weighted Average Remaining Contractual Life (Years) | 3 years 6 months 25 days |
Weighted Average Exercise Price | $ 0.06 |
Number Exercisable | shares | 2,716,666 |
Options Exercisable - Weighted Average Exercise Price | $ 0.06 |
0.10 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price | $ 0.10 |
Number of options outstanding | shares | 4,075,000 |
Weighted Average Remaining Contractual Life (Years) | 4 years 8 months 5 days |
Weighted Average Exercise Price | $ 0.10 |
Number Exercisable | shares | 1,358,334 |
Options Exercisable - Weighted Average Exercise Price | $ 0.10 |
0.20 - 0.26 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Minimum exercise price | 0.20 |
Maximum exercise price | $ 0.26 |
Number of options outstanding | shares | 2,625,000 |
Weighted Average Remaining Contractual Life (Years) | 2 years 3 months 19 days |
Weighted Average Exercise Price | $ 0.25 |
Number Exercisable | shares | 2,425,000 |
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] | |
Exercise Price | $ 0.37 |
Number of options outstanding | shares | 1,705,000 |
Weighted Average Remaining Contractual Life (Years) | 1 year 1 month 24 days |
Weighted Average Exercise Price | $ 0.37 |
Number Exercisable | shares | 1,705,000 |
Options Exercisable - Weighted Average Exercise Price | $ 0.37 |
0.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price | $ 0.50 |
Number of options outstanding | shares | 1,820,000 |
Weighted Average Remaining Contractual Life (Years) | 2 months 19 days |
Weighted Average Exercise Price | $ 0.50 |
Number Exercisable | shares | 1,820,000 |
Options Exercisable - Weighted Average Exercise Price | $ 0.50 |
2.18 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price | $ 2.18 |
Number of options outstanding | shares | 14,286 |
Weighted Average Remaining Contractual Life (Years) | 5 months 20 days |
Weighted Average Exercise Price | $ 2.18 |
Number Exercisable | shares | 14,286 |
Options Exercisable - Weighted Average Exercise Price | $ 2.18 |
STOCK OPTIONS (Summary of Sto48
STOCK OPTIONS (Summary of Stock Option Liability) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock option liability | ||||
Reclassification from additional paid-in capital | 9,663 | |||
Change in fair value of stock option liability | $ (9,322) | (9,322) | ||
Stock option liability | $ 341 | $ 341 |
WARRANTS (Narrative) (Details)
WARRANTS (Narrative) (Details) | Jul. 10, 2017USD ($)shares | Sep. 19, 2016USD ($)shares | Sep. 19, 2016CADCAD / sharesshares | Sep. 15, 2016USD ($)shares | Sep. 15, 2016CADCAD / sharesshares | Oct. 31, 2016USD ($)shares | Aug. 05, 2016shares | Jul. 31, 2017USD ($)shares | Jul. 31, 2016USD ($) | Oct. 31, 2016USD ($)shares | Jul. 31, 2017CAD / shares | Jul. 10, 2017CAD / shares | Jul. 20, 2016CAD / shares |
Class of Warrant or Right [Line Items] | |||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||
Common shares issued | shares | 18,240,000 | ||||||||||||
Proceeds from issuance of equity | $ 1,057,907 | $ 1,534,413 | |||||||||||
Warrant [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Equity issuance, amount per share | CAD / shares | CAD 0.16 | CAD 0.16 | |||||||||||
Warrants exercised | shares | 620,000 | 620,000 | 2,500,000 | 2,500,000 | |||||||||
Common shares issued | shares | 620,000 | 620,000 | 2,500,000 | 2,500,000 | |||||||||
Proceeds from issuance of equity | $ 75,112 | $ 303,951 | |||||||||||
Warrant [Member] | CDN [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Equity issuance, amount per share | CAD / shares | CAD 0.08 | ||||||||||||
Proceeds from issuance of equity | CAD | CAD 99,200 | CAD 400,000 | |||||||||||
$CDN 0.13 Warrant [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Number of warrants issued | shares | 11,362,310 | ||||||||||||
Warrant Expiration date | Sep. 19, 2016 | ||||||||||||
Placement Agent's Warrants [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Number of warrants issued | shares | 1,259,300 | ||||||||||||
Fair value of warrants issued | $ 15,592 | $ 11,621 | $ 11,621 | ||||||||||
Placement Agent's Warrants [Member] | CDN [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Equity issuance, amount per share | CAD / shares | CAD 0.10 | ||||||||||||
$CDN 0.08 Unit [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Equity issuance, amount per share | CAD / shares | CAD 0.08 | ||||||||||||
Fair value of warrants issued | $ 169,136 | ||||||||||||
Risk free interest rate | 1.40% | ||||||||||||
Expected volatility rate | 59.00% | ||||||||||||
Dividend yield | 0.00% | ||||||||||||
Expected term | 2 years | ||||||||||||
Proceeds from issuance of equity | $ 1,132,216 | ||||||||||||
$CDN 0.08 Unit [Member] | Placement Agent's Warrants [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Fair value of warrants issued | $ 15,592 | ||||||||||||
Risk free interest rate | 1.40% | ||||||||||||
Expected volatility rate | 59.00% | ||||||||||||
Dividend yield | 0.00% | ||||||||||||
Expected term | 2 years | ||||||||||||
$CDN 0.15 Unit [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Number of warrants issued | shares | 4,340,000 | ||||||||||||
Equity issuance, amount per share | CAD / shares | CAD 0.15 | ||||||||||||
Fair value of warrants issued | $ 54,446 | ||||||||||||
Risk free interest rate | 0.86% | ||||||||||||
Expected volatility rate | 52.00% | ||||||||||||
Dividend yield | 0.00% | ||||||||||||
Expected term | 3 years | ||||||||||||
Proceeds from issuance of equity | $ 504,729 | ||||||||||||
$CDN 0.15 Unit [Member] | Placement Agent's Warrants [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Number of warrants issued | shares | 200,400 | ||||||||||||
Fair value of warrants issued | $ 11,621 | ||||||||||||
Risk free interest rate | 0.73% | ||||||||||||
Expected volatility rate | 89.00% | ||||||||||||
Dividend yield | 0.00% | ||||||||||||
Expected term | 2 years |
WARRANTS (Summary of Warrants A
WARRANTS (Summary of Warrants Activity) (Details) - Warrant [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Jul. 31, 2017 | Oct. 31, 2016 | |
Warrant activity, number of shares: | ||
Warrants outstanding at October 31, 2016 | 4,540,400 | |
Issued in the $CDN 0.08 Unit private placement (Note 11) | 18,240,000 | |
Agent's Warrants (Note 11) | 1,259,300 | |
Warrants outstanding and exercisable at July 31, 2017 | 24,039,700 | 4,540,400 |
Warrant activity, weighted average exercise price: | ||
Warrants outstanding at October 31, 2016 | $ 0.12 | |
Issued in the $CDN 0.08 Unit private placement (Note 11), weighted average exercise price | 0.10 | |
Agent's Warrants (Note 11), weighted average exercise price | 0.08 | |
Warrants outstanding and exercisable at July 31, 2017 | $ 0.11 | $ 0.12 |
Weighted average remaining contractual life | 1 year 11 months 8 days | 2 years 8 months 2 days |
Aggregate intrinsic value |
WARRANTS (Summary of Warrants O
WARRANTS (Summary of Warrants Outstanding and Exercisable by Price Range) (Details) | 9 Months Ended |
Jul. 31, 2017$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Range of exercise price, lower limit | $ 0.08 |
Range of exercise price, upper limit | $ 0.16 |
Warrants and Exercisable outstanding | shares | 24,039,700 |
Weighted Remaining Average Contractual Life (Years) | 1 year 11 months 8 days |
Weighted average exercise price, outstanding | $ 0.11 |
Warrant Exercise Price Range One [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise price | $ 0.08 |
Warrants and Exercisable outstanding | shares | 1,259,300 |
Weighted Remaining Average Contractual Life (Years) | 1 year 11 months 12 days |
Weighted average exercise price, outstanding | $ 0.08 |
Warrant Exercise Price Range Two [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise price | $ 0.10 |
Warrants and Exercisable outstanding | shares | 18,240,000 |
Weighted Remaining Average Contractual Life (Years) | 1 year 11 months 12 days |
Weighted average exercise price, outstanding | $ 0.10 |
Warrant Exercise Price Range Three [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise price | $ 0.13 |
Warrants and Exercisable outstanding | shares | 4,340,000 |
Weighted Remaining Average Contractual Life (Years) | 1 year 11 months 19 days |
Weighted average exercise price, outstanding | $ 0.13 |
Warrant Exercise Price Range Four [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise price | $ 0.16 |
Warrants and Exercisable outstanding | shares | 200,400 |
Weighted Remaining Average Contractual Life (Years) | 1 year 11 months 19 days |
Weighted average exercise price, outstanding | $ 0.16 |
WARRANTS (Summary of Warrants D
WARRANTS (Summary of Warrants Derivative Liability) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Warrants and Rights Note Disclosure [Abstract] | ||||
Warrant derivative liability October 31, 2016: | ||||
Reclassification from additional paid-in capital | 66,067 | |||
Warrants issued in $CDN 0.08 Unit private placement | 169,136 | |||
Agent’s warrants issued in $CDN 0.08 Unit private placement | 15,592 | |||
Change in fair value of warrant derivative liability | $ (65,587) | (65,587) | ||
Foreign currency translation adjustment | 5,794 | |||
Warrant derivative liability July 31, 2017 | $ 191,002 | $ 191,002 |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2017 | Oct. 31, 2016 | |
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 | 6,362 | $ 17,010 |
Effect of a 1% decrease in interest rates on interest income | 1,514 | |
United States and Canadian financial institutions [Member] | ||
Cash balances not insured | $ 915,398 | $ 1,375,673 |
FINANCIAL INSTRUMENTS (Schedule
FINANCIAL INSTRUMENTS (Schedule of Fair Value of Derivative Liability) (Details) | Jul. 31, 2017USD ($) |
Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Stock option liability | |
Warrant derivative liability | |
Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Stock option liability | |
Warrant derivative liability | |
Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Stock option liability | 341 |
Warrant derivative liability | $ 191,002 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Royalty) (Details) - Sierra Mojada Property Concession [Member] | Jul. 31, 2017USD ($) |
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 |
COMMITMENTS AND CONTINGENCIES56
COMMITMENTS AND CONTINGENCIES (Litigation and Claims) (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2017USD ($) | |
Litigation and Claims: | |
Interest rate sought on the Royalty | 6.00% |
Damages sought in litigation matter | $ 5.9 |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Segment Net Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net Loss | $ (192,245) | $ (1,077,641) | $ (1,374,806) | $ (1,856,726) |
Mexico [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Loss from Continuing Operations | (86,000) | (755,000) | (693,000) | (880,000) |
Canada [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Loss from Continuing Operations | (233,000) | (323,000) | (895,000) | (968,000) |
Gabon [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Loss from Continuing Operations | $ 127,000 | $ 213,000 | $ 9,000 |
SEGMENT INFORMATION (Schedule58
SEGMENT INFORMATION (Schedule of Segment Assets) (Details) - USD ($) | Jul. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 |
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | $ 1,001,950 | $ 1,467,328 | |
Value-added tax receivable, net | 167,731 | 117,276 | $ 110,550 |
Other receivables | 5,884 | 4,652 | |
Prepaid expenses and deposits | 37,953 | 116,271 | |
Assets held for sale | 21,283 | ||
Office and mining equipment, net | 219,537 | 226,301 | |
Property concessions | 5,004,386 | 5,004,386 | |
Goodwill | 2,058,031 | 2,058,031 | |
TOTAL ASSETS | 8,495,472 | 9,015,528 | |
Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 996,000 | 1,450,000 | |
Value-added tax receivable, net | |||
Other receivables | 4,000 | 3,000 | |
Prepaid expenses and deposits | 20,000 | 93,000 | |
Assets held for sale | |||
Office and mining equipment, net | |||
Property concessions | |||
Goodwill | |||
TOTAL ASSETS | 1,020,000 | 1,546,000 | |
Mexico [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 6,000 | 17,000 | |
Value-added tax receivable, net | 167,000 | 117,000 | |
Other receivables | 2,000 | 2,000 | |
Prepaid expenses and deposits | 18,000 | 23,000 | |
Assets held for sale | 21,000 | ||
Office and mining equipment, net | 220,000 | 226,000 | |
Property concessions | 5,004,000 | 5,005,000 | |
Goodwill | 2,058,000 | 2,058,000 | |
TOTAL ASSETS | $ 7,475,000 | $ 7,469,000 |
SEGMENT INFORMATION (Schedule59
SEGMENT INFORMATION (Schedule of Segment Exploration and Property Holding Costs) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Exploration and property holding (costs) recovery for the period | $ (124,615) | $ (745,763) | $ (702,053) | $ (1,008,476) |
Mexico [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Exploration and property holding (costs) recovery for the period | (123,000) | (733,000) | (998,000) | |
Mitzic, Gabon [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Exploration and property holding (costs) recovery for the period | $ (2,000) | $ 31,000 | $ (10,000) |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) | Aug. 03, 2017USD ($)shares | Aug. 03, 2017CADCAD / sharesshares | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) |
Subsequent Event [Line Items] | ||||
Proceeds from issuance of units | $ 1,057,907 | $ 1,534,413 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Units issued during period | shares | 3,125,000 | 3,125,000 | ||
Equity issuance, price per share | CAD / shares | CAD .08 | |||
Proceeds from issuance of units | $ 198,760 | |||
Subsequent Event [Member] | CDN [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from issuance of units | CAD | CAD 250,000 |