Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Jan. 28, 2021 | Apr. 30, 2020 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Amendment description | EXPLANATORY NOTE Silver Bull Resources, Inc. (the “Company”) is filing this Amendment No. 1 (this “Amendment”) to its Annual Report on Form 10-K for the fiscal year ended October 31, 2020, as filed with the Securities and Exchange Commission (“SEC”) on January 28, 2021 (the “Original Form 10-K”). The purpose of this Amendment is to (i) file Exhibit 10.3 (Joint Venture Agreement, dated as of September 1, 2020, by and between the Company and Copperbelt AG), which was included in the list of exhibits in Item 15 of Part IV of the Original Form 10-K but was inadvertently omitted from the exhibits actually filed with the Original Form 10-K, and (ii) include the interactive data files of Exhibit 101 to the Original Form 10-K, in accordance with Rule 405 of SEC Regulation S-T, that were inadvertently omitted from the Original Form 10-K. In addition, pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), currently dated certifications from the Company’s principal executive officer and principal financial officer are filed herewith as exhibits to this Amendment pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act. Because no financial statements have been included in this Amendment and this Amendment does not contain or amend any disclosure with respect to Items 307 and 308 of SEC Regulation S-K, paragraphs 3, 4, and 5 of such certifications have been omitted. Similarly, because no financial statements have been included in this Amendment, currently dated certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 have been omitted. Except as described above, no changes have been made to the Original Form 10-K, and this Amendment does not amend, update or change any other items or disclosures in the Original Form 10-K. The Original Form 10-K continues to speak as of its original filing date. This Amendment does not reflect subsequent events occurring after the filing date of the Original Form 10-K or modify or update in any way disclosures in the Original Form 10-K. | ||
Document Period End Date | Oct. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SILVER BULL RESOURCES, INC. | ||
Entity Central Index Key | 0001031093 | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 33,484,945 | ||
Entity Public Float | $ 13.7 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Name | NV | ||
Entity File Number | 001-33125 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 1,861,518 | $ 1,431,634 | |
Value-added tax receivable, net of allowance for uncollectible taxes of $345,059 and $327,624, respectively (Note 4) | 219,804 | 255,847 | |
Income tax receivables | 580 | 784 | |
Other receivables | 14,387 | 8,543 | |
Prepaid expenses and deposits | 229,647 | 204,713 | |
Loan receivable (Note 5) | 360,050 | ||
Total Current Assets | 2,685,986 | 1,901,521 | |
Office and mining equipment, net (Note 6) | 239,769 | 226,413 | |
Property concessions (Note 7) | 5,019,927 | 5,019,927 | |
Goodwill (Note 8) | 2,058,031 | 2,058,031 | |
TOTAL ASSETS | 10,003,713 | 9,205,892 | |
CURRENT LIABILITIES | |||
Accounts payable | 499,057 | 328,943 | |
Accrued liabilities and expenses | 383,718 | 305,446 | |
Income tax payable | 5,000 | 1,825 | |
Stock option liability (Note 11) | 4,803 | ||
Total Current Liabilities | 887,775 | 641,017 | |
Loan payable (Note 9) | 30,034 | ||
TOTAL LIABILITIES | 917,809 | 641,017 | |
COMMITMENTS AND CONTINGENCIES (Note 15) | |||
STOCKHOLDERS' EQUITY (Notes 3, 10, 11 and 12) | |||
Common stock, $0.01 par value; 37,500,000 shares authorized, 33,165,945 and 29,541,027 shares issued and outstanding, respectively | [1] | 2,399,518 | 2,363,282 |
Additional paid-in capital | 138,613,286 | 135,902,944 | |
Accumulated deficit | (132,019,148) | (129,793,599) | |
Other comprehensive income | 92,248 | 92,248 | |
Total Stockholders' Equity | 9,085,904 | 8,564,875 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 10,003,713 | $ 9,205,892 | |
[1] | Shares outstanding for prior period have been restated for the one-for-eight reverse stock split. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for uncollectible taxes, current | $ 345,059 | $ 327,624 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 37,500,000 | 37,500,000 |
Common stock, shares issued | 33,165,945 | 29,541,027 |
Common stock, shares outstanding | 33,165,945 | 29,541,027 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | ||
Income Statement [Abstract] | |||
REVENUES | |||
EXPLORATION AND PROPERTY HOLDING COSTS | |||
Exploration and property holding costs | 645,701 | 2,508,602 | |
Depreciation, asset and property concessions' impairment (Notes 6 and 7) | 34,694 | 44,119 | |
TOTAL EXPLORATION AND PROPERTY HOLDING COSTS | 680,395 | 2,552,721 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |||
Personnel | 613,517 | 692,242 | |
Office and administrative | 316,930 | 446,853 | |
Professional services | 398,154 | 245,949 | |
Directors' fees | 144,310 | 201,073 | |
Provision for uncollectible value-added taxes (Note 4) | 49,619 | 222,130 | |
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 1,522,530 | 1,808,247 | |
LOSS FROM OPERATIONS | (2,202,925) | (4,360,968) | |
OTHER (EXPENSES) INCOME | |||
Interest income | 7,689 | 28,443 | |
Foreign currency transaction loss | (22,371) | (15,214) | |
Change in fair value of stock option liability (Note 11) | 21,105 | ||
Change in fair value of warrant derivative liability | 393,374 | ||
TOTAL OTHER (EXPENSES) INCOME | (14,682) | 427,708 | |
LOSS BEFORE INCOME TAXES | (2,217,607) | (3,933,260) | |
INCOME TAX EXPENSE (Note 13) | 7,942 | 5,309 | |
NET AND COMPREHENSIVE LOSS | $ (2,225,549) | $ (3,938,569) | |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | [1] | $ (0.08) | $ (0.13) |
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | [1] | 29,580,786 | 29,485,841 |
[1] | Shares outstanding for prior period have been restated for the one-for-eight reverse stock split. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,225,549) | $ (3,938,569) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation, asset and property concessions' impairment | 34,694 | 44,119 |
Provision for uncollectible value-added taxes | 49,619 | 222,130 |
Foreign currency transaction loss | 15,191 | 145 |
Change in fair value of warrant derivative liability | (393,374) | |
Change in fair value of stock option liability (Note 11) | (21,105) | |
Stock options issued for compensation (Note 11) | 62,417 | 206,756 |
Changes in operating assets and liabilities: | ||
Value-added tax receivable | (39,820) | (288,673) |
Income tax receivables | 123 | (604) |
Other receivables | (6,338) | 3,641 |
Prepaid expenses and deposits | (25,419) | 31,090 |
Accounts payable | 120,273 | 71,476 |
Accrued liabilities and expenses | 53,511 | (143,286) |
Income tax payable | 3,175 | (2,875) |
Net cash used in operating activities | (1,958,123) | (4,209,129) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property concessions | (11,821) | |
Purchase of equipment | (48,050) | (57,224) |
Loan receivable (Note 5) | (360,050) | |
Net cash used in investing activities | (408,100) | (69,045) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Property concessions funding (Note 3) | 1,100,731 | 2,540,810 |
Proceeds from loan financing (Note 9) | 29,531 | |
Proceeds from issuance of common stock, net of offering costs (Note 10) | 1,668,669 | |
Proceeds from exercise of warrants, net of costs (Note 10) | 142,876 | |
Net cash provided by financing activities | 2,798,931 | 2,683,686 |
Effect of exchange rates on cash and cash equivalents | (2,824) | 283 |
Net increase (decrease) in cash and cash equivalents | 429,884 | (1,594,205) |
Cash and cash equivalents beginning of year | 1,431,634 | 3,025,839 |
Cash and cash equivalents end of year | 1,861,518 | 1,431,634 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Income taxes paid | 4,825 | 8,080 |
Interest paid | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Offering costs included in accounts payable and accrued liabilities | $ 90,042 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Other Comprehensive Income [Member] | Total | ||
Balance at Oct. 31, 2018 | $ 2,348,682 | $ 133,015,768 | $ (125,855,030) | $ 92,248 | $ 9,601,668 | ||
Balance, shares at Oct. 31, 2018 | [1] | 29,358,527 | |||||
Issuance of common stock as follows: - Exercise of warrants at a price of $0.13 per share less costs of $210 (Note 10) | $ 14,600 | 128,276 | 142,876 | ||||
Issuance of common stock as follows: - Exercise of warrants at a price of $0.13 per share less costs of $210 (Note 10) (in shares) | [1] | 182,500 | |||||
Issuance of common stock as follows: - South32 option agreement (Note 3) | 2,540,810 | 2,540,810 | |||||
Reclassification to additional paid-in capital of stock option liability (Notes 3 and 11) | 12,126 | 12,126 | |||||
Reclassification of consultants' stock options to liability (Note 11) | (792) | (792) | |||||
Stock option activity as follows: | |||||||
Stock-based compensation for options issued to directors, officers, employees and consultants (Note 11) | 206,756 | 206,756 | |||||
Net loss | (3,938,569) | (3,938,569) | |||||
Balance at Oct. 31, 2019 | $ 2,363,282 | 135,902,944 | (129,793,599) | 92,248 | $ 8,564,875 | ||
Balance, shares at Oct. 31, 2019 | 29,541,027 | [1] | 29,541,027 | ||||
Issuance of common stock as follows: - Fractional share adjustment (Note 10) | |||||||
Issuance of common stock as follows: - Fractional share adjustment (Note 10) (in shares) | [1] | 1,338 | |||||
Issuance of common stock as follows: - for cash at a price of $0.47 per share with attached warrants, less offering costs of $124,456 (Note 10) | $ 36,236 | 1,542,391 | 1,578,627 | ||||
Issuance of common stock as follows: - for cash at a price of $0.47 per share with attached warrants, less offering costs of $124,456 (Note 10) (in shares) | [1] | 3,623,580 | |||||
Issuance of common stock as follows: - South32 option agreement (Note 3) | 1,100,731 | 1,100,731 | |||||
Reclassification to additional paid-in capital of stock option liability (Notes 3 and 11) | 4,803 | 4,803 | |||||
Stock option activity as follows: | |||||||
Stock-based compensation for options issued to directors, officers, employees and consultants (Note 11) | 62,417 | 62,417 | |||||
Net loss | (2,225,549) | (2,225,549) | |||||
Balance at Oct. 31, 2020 | $ 2,399,518 | $ 138,613,286 | $ (132,019,148) | $ 92,248 | $ 9,085,904 | ||
Balance, shares at Oct. 31, 2020 | 33,165,945 | [1] | 33,165,945 | ||||
[1] | Shares outstanding for prior periods have been restated for the one-for-eight reverse stock split. |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - Common Stock Issuance One [Member] - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Equity issuance, price per share | $ 0.47 | $ 0.13 |
Offering costs incurred | $ 124,456 | $ 210 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Oct. 31, 2020 | |
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Silver Bull Resources, Inc. (the “Company”) was incorporated in the State of Nevada on November 8, 1993 as the Cadgie Company for the purpose of acquiring and developing mineral properties. The Cadgie Company was a spin-off from its predecessor, Precious Metal Mines, Inc. On June 28, 1996, the Company’s name was changed to Metalline Mining Company. On April 21, 2011, the Company’s name was changed to Silver Bull Resources, Inc. The Company’s fiscal year-end is October 31. The Company has not realized any revenues from its planned operations and is considered an exploration stage company. The Company has not established any reserves with respect to its exploration projects and may never enter into the development stage with respect to any of its projects. The Company engages in the business of mineral exploration. The Company currently owns 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”), Contratistas de Sierra Mojada S.A. de C.V. (“Contratistas”) and Minas de Coahuila SBR S.A. de C.V. (“Minas”). In addition, the Company has the option to acquire certain property concessions in Kazakhstan. On April 16, 2010, Metalline Mining Delaware, Inc., a wholly-owned subsidiary of the Company incorporated in the State of Delaware, was merged with and into Dome Ventures Corporation (“Dome”), a Delaware corporation. 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 September 18, 2020, the Company completed a one-for-eight reverse stock split of its shares of common stock. All share and per share information in the consolidated financial statements, including references to the number of shares of common stock, stock options and warrants, prices of issued shares, exercise prices of stock options and warrants, and loss per share, have been adjusted to reflect the impact of the reverse stock split. The Company’s efforts and expenditures have been concentrated on the exploration of properties, principally in the Sierra Mojada Property located in Coahuila, Mexico. The Company has not determined whether its exploration properties contain ore reserves that are economically recoverable. The ultimate realization of the Company’s investment in exploration properties is dependent upon the success of future property sales, the existence of economically recoverable reserves, and the ability of the Company to obtain financing or make other arrangements for exploration, development, and future profitable production activities. The ultimate realization of the Company’s investment in exploration properties cannot be determined at this time. Going Concern Since its inception in November 1993, the Company has not generated revenue and has incurred an accumulated deficit of $132,019,148. Accordingly, the Company has not generated cash flows 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 October 31, 2020, the Company had cash and cash equivalents of $1,861,518. Based on the Company’s limited cash and cash equivalents, and history of losses, there is substantial doubt as to whether the Company’s existing cash resources are sufficient to enable the Company to continue its operations for the next 12 months as a going concern. Management plans to pursue possible financing and strategic options including, but not limited to, obtaining additional equity financing. Management has successfully pursued these options previously and believes that they alleviate the substantial doubt that the Company can continue its operations for the next 12 months as a going concern. However, there is no assurance that the Company will be successful in pursuing these plans. The Company’s limited ability to issue shares to raise capital without an increase in the number of authorized shares of common stock is discussed further in the “Risk Factors – Risks Related to our Business” section above |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies is presented to assist in understanding the consolidated financial statements. The consolidated financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. Basis of Presentation The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) using the accrual method of accounting, except for cash flow amounts. All figures are in United States dollars unless otherwise noted. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, after elimination of intercompany accounts and transactions. The wholly owned subsidiaries of the Company are listed in Note 1 to the consolidated financial statements. The Company consolidates entities in which it has a controlling financial interest based on either the variable interest entity (VIE) or voting interest model. Under the VIE model, a VIE is a reporting entity that has (a) the power to direct the activities that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. Currently, the Company manages the mineral exploration program in the property concessions in Mexico through its wholly-owned subsidiary corporations Minera Metalin and Contratistas. The Company has determined Minera Metalin and Contratistas are variable interest entities and the Company is the primary beneficiary. Use of Estimates The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates based on assumptions about future events that affect the amounts reported in the consolidated financial statements and related notes to the consolidated financial statements. Actual results could differ from those estimates. Estimates and assumptions are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and assumptions are accounted for prospectively. Significant areas involving the use of estimates include determining the allowance for uncollectible taxes, evaluating recoverability of property concessions, evaluating impairment of long-lived assets, evaluating impairment of goodwill, establishing a valuation allowance on future use of deferred tax assets, calculating a valuation for stock option liability, calculating a valuation for warrant derivative liability and calculating stock-based compensation. Cash and Cash Equivalents Cash and cash equivalents include all highly-liquid investments with an original maturity of three months or less at the date of purchase. Property Concessions Property concession acquisition costs are capitalized when incurred and will be amortized using the units of production method following the commencement of production. If a property concession is subsequently abandoned or impaired, any capitalized costs will be expensed in the period of abandonment or impairment. To date, no property concessions have reached the production stage. Acquisition costs include cash consideration and the fair market value of shares issued on the acquisition of property concessions. Exploration Costs Exploration costs incurred are expensed to the date of establishing that costs incurred are economically recoverable. Exploration expenditures incurred subsequent to the establishment of economic recoverability are capitalized and included in the carrying amount of the related property. To date, the Company has not established the economic recoverability of its exploration prospects; therefore, all exploration costs are being expensed. Property and Equipment Property and equipment are recorded at cost less accumulated depreciation and impairment losses. Assets under construction are depreciated when they are substantially complete and available for their intended use, over their estimated useful lives. Repairs and maintenance of property and equipment are expensed as incurred. Costs incurred to enhance the service potential of property and equipment are capitalized and depreciated over the remaining useful life of the improved asset. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets as follows: · Mining equipment – five to 10 years · Vehicles – four years · Building and structures – 40 years · Computer equipment and software – three years · Well equipment – 10 to 40 years · Office equipment – three to 10 years Impairment of Long-Lived Assets Management reviews and evaluates its long-lived assets for impairment when events and changes in circumstances indicate that the related carrying amounts of its assets may not be recoverable. Impairment is considered to exist if the future cash flows on an undiscounted basis are less than the carrying amount of the long-lived asset. An impairment loss is measured and recorded based on the difference between book value and fair value of the asset group. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of cash flows from other asset groups. In estimating future cash flows, the Company estimates the price that would be received to sell an asset group in an orderly transaction between market participants at the measurement date. Significant factors that impact this price include the price of silver and zinc, and general market conditions for exploration companies, among other factors. Goodwill Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. The Company tests goodwill for impairment at the reporting unit level at least annually, or more frequently if events or changes in circumstances indicate that the assets may be impaired. Goodwill impairment tests require judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The Company performs its annual goodwill impairment tests on April 30 th Income Taxes The Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law on December 22, 2017. The law includes significant changes to the U.S. corporate income tax system, including a federal corporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. The law did not have a material impact on the Company’s financial position, results of operations or cash flows and disclosures. The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are determined based on temporary differences between the tax basis and accounting basis of the assets and liabilities measured using tax rates enacted at the balance sheet date. The Company recognizes the tax benefit from uncertain tax positions only if it is at least “more likely than not” that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the taxing authorities. This accounting standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods and disclosure. A valuation allowance is recorded against deferred tax assets if management does not believe that the Company has met the “more likely than not” standard imposed by this guidance to allow recognition of such an asset. Management recorded a full valuation allowance at October 31, 2020 and 2019 against the deferred tax assets as it determined that future realization would not meet the “more likely than not” criteria. Warrant Derivative Liability The Company classifies warrants with a Canadian Dollar (“$CDN”) exercise price on its consolidated balance sheets as a derivative liability that 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 fair value the warrants that do not have an acceleration feature and has used the Monte Carlo valuation model to fair value the warrants that do have an acceleration feature. 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 adjusted to reflect the implicit discount to historical volatilities observed in the prices of traded warrants. 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 dividend yield is expected to be none as the Company has not paid dividend nor does the Company anticipate paying any dividend in the foreseeable future. The derivatives warrants are 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. Stock-Based Compensation The Company uses the Black-Scholes pricing model as a method for determining the estimated fair value for all stock options awarded to employees, officers, directors and consultants. The expected term of the options is based upon an evaluation of historical and expected future exercise behavior. 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 options at the valuation date. Volatility is determined based upon historical volatility of the Company’s stock and adjusted if future volatility is expected to vary from historical experience. The dividend yield is assumed to be none as the Company has not paid dividends nor does the Company anticipate paying any dividends in the foreseeable future. The Company uses the graded vesting attribution method to recognize compensation costs over the requisite service period. Stock options granted to consultants when the exercise price is in $CDN are classified as stock option liability on the Company’s consolidated balance sheets upon vesting. The Company classifies cumulative compensation cost associated with options on subsidiary equity as additional paid-in capital until exercise. Loss per Share Basic loss per share includes no dilution and is computed by dividing net loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted loss per share reflects the potential dilution of securities that could share in the earnings of an entity similar to fully diluted loss per share. Although there were stock options and warrants in the aggregate of 3,855,539 shares and 4,019,039 shares outstanding at October 31, 2020 and 2019, respectively, they were not included in the calculation of loss per share because they would have been considered anti-dilutive. Foreign Currency Translation During the years ended October 31, 2020 and 2019, the functional currency of Silver Bull Resources, Inc. and its subsidiaries was the U.S. dollar. During the years ended October 31, 2020 and 2019, the Company’s Mexican operations’ monetary assets and liabilities with foreign source currencies were translated into U.S. dollars at the period-end exchange rate and non-monetary assets and liabilities with foreign source currencies were translated using the historical exchange rate. The Company’s Mexican operations’ revenue and expenses were translated at the average exchange rate during the period except for depreciation of office and mining equipment, costs of office and mining equipment sold and impairment of property concessions, all of which are translated using the historical exchange rate. Foreign currency translation gains and losses of the Company’s Mexican operations are included in the consolidated statement of operations. Accounting for Loss Contingencies and Legal Costs From time to time, the Company is named as a defendant in legal actions arising from its normal business activities. The Company records an accrual for the estimated loss from a loss contingency when information available prior to issuance of its financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Disclosure of a loss contingency is made by the Company if there is at least a reasonable possibility that a loss has been incurred, and either an accrual has not been made or an exposure to loss exists in excess of the amount accrued. In cases where only disclosure of the loss contingency is required, either the estimated loss or a range of estimated loss is disclosed or it is stated that an estimate cannot be made. Legal costs incurred in connection with loss contingencies are considered period costs and accordingly are expensed in the period services are provided. Recent Accounting Pronouncements Adopted in the Year On November 1, 2019, the Company adopted the Financial Accounting Standards Board’s (the “FASB’s”) Accounting Standards Update (“ASU”) 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”, which became effective for fiscal years beginning after December 15, 2018. ASU 2018-07 simplifies the accounting for nonemployee share-based payments, aligning it more closely with the accounting for employee awards. Under the adoption provisions, equity-classified awards for which a measurement date had already been established as of the adoption date, including the Company’s South32 Option Agreement (Note 3), are unaffected by ASU 2018-07. As a result of this adoption, during the year ended October 31, 2020, the Company reclassified $4,803 from stock option liability to additional paid-in capital (Note 11). On November 1, 2019, the Company adopted the FASB’s ASU 2016-02, “Leases (Topic 842),” together with subsequent amendments, which became effective for fiscal years beginning after December 15, 2018. The new standard requires a lessee to recognize on its balance sheet, a liability to make lease payments (the lease liability) and the right-of-use (“ROU”) asset representing the right to the underlying asset for the lease term and allows companies to elect to apply the standard at the effective date. The Company elected the package of practical expedients permitted under the transition guidance, which applies to expired or existing leases and allows the Company not to reassess whether a contract contains a lease, the lease classification, and any initial direct costs incurred. The Company also elected a number of optional practical expedients including the following: the short-term lease recognition exemption whereby ROU assets and lease liabilities will not be recognized for leasing arrangements with terms less than one year; the land easements practical expedient whereby existing land easements are not reassessed under the new standard; the hindsight practical expedient when determining lease term at transition; and the practical expedient not to apply lease accounting to the intangible right to explore for those natural resources, and rights to use the land in which those natural resources are contained. The adoption of this update did not have an impact on the Company’s financial position, results of operations or cash flows and disclosures. Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740),” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020. Early adoption is permitted. At this time, the Company does not expect this standard to affect 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 consolidated financial statements. |
SOUTH32 OPTION AGREEMENT
SOUTH32 OPTION AGREEMENT | 12 Months Ended |
Oct. 31, 2020 | |
Other Commitments [Abstract] | |
SOUTH32 OPTION AGREEMENT | NOTE 3 – SOUTH32 OPTION AGREEMENT On June 1, 2018, the Company and its subsidiaries Minera Metalin and Contratistas entered into an earn-in option agreement (the “South32 Option Agreement”) with South32 International Investment Holdings Pty Ltd (“South32”), a wholly-owned subsidiary of South32 Limited (ASX/JSE/LSE: S32), whereby South32 is able to obtain an option to purchase 70% of the shares of Minera Metalin and Contratistas (the “South32 Option”). Minera Metalin owns the Sierra Mojada Property located in Coahuila, Mexico (the “Sierra Mojada Project”), and Contratistas supplies labor for the Sierra Mojada Project. Under the South32 Option Agreement, South32 earns into the South32 Option by funding a collaborative exploration program on the Sierra Mojada Project. Upon the terms and subject to the conditions set forth in the South32 Option Agreement, in order for South32 to earn and maintain its four-year option, South32 must have contributed to Minera Metalin for exploration of the Sierra Mojada Project at least $3 million by the end of Year 1, $6 million by the end of Year 2, $8 million by the end of Year 3 and $10 million by the end of Year 4 (the “Initial Funding”). Funding is made on a quarterly basis based on the subsequent quarter’s exploration budget. South32 may exercise the South32 Option by contributing $100 million to Minera Metalin (the “Subscription Payment”), less the amount of Initial Funding previously contributed by South32. The issuance of shares upon notice of exercise of the South32 Option by South32 is subject to antitrust approval by the Mexican government. If the full amount of the Subscription Payment is advanced by South32 and the South32 Option becomes exercisable and is exercised, the Company and South32 will be obligated to contribute funding to Minera Metalin on a 30/70 pro rata basis. If South32 elects not to continue with the South32 Option during the four-year option period, the Sierra Mojada Project will remain 100% owned by the Company. The exploration program will be initially managed by the Company, with South32 being able to approve the exploration program funded by it. The Company received funding of $3,144,163 from South32 for Year 1 of the South32 Option Agreement. In April 2019, the Company received a notice from South32 to maintain the South32 Option Agreement for Year 2 by providing cumulative funding of $6 million by the end of such period. As of October 31, 2020, the Company had received funding of $1,420,161, which included a $319,430 received during the year ended October 31, 2019, from South32 for Year 2 of the South32 Option Agreement, the time period for which has been extended by an event of force majeure described in more detail below. In November 2020, the Company received a payment of $60,286 for the extended Year 2 time period. If the South32 Option Agreement is terminated by South32 without cause or if South32 is unable to obtain antitrust authorization from the Mexican government, the Company is under no obligation to reimburse South32 for amounts contributed under the South32 Option Agreement. Upon exercise of the South32 Option, Minera Metalin and Contratistas are required to issue common shares to South32. Pursuant to the South32 Option Agreement, following exercise and until a decision has been made by the board of directors of Minera Metalin to develop and construct a mine on the Sierra Mojada Project, each shareholder holding greater than or equal to 10% of the shares may withdraw as an owner in exchange for a 2% net smelter royalty on products produced and sold from the Sierra Mojada Project. Any shareholder whose holdings are reduced to less than 10% must surrender its interest in exchange for a 2% net smelter royalty. The Company has determined that Minera Metalin and Contratistas are variable interest entities and that the South32 Option Agreement has not resulted in the transfer of control of the Sierra Mojada Project to South32. The Company has also determined that the South32 Option Agreement represents non-employee share-based compensation associated with the collaborative exploration program undertaken by the parties. The compensation cost is expensed when the associated exploration activity occurs. The share-based payments have been classified as equity instruments and valued based on the fair value of the cash consideration received, as it is more reliably measurable than the fair value of the equity interest. If the South32 Option is exercised and shares are issued prior to a decision to develop a mine, such shares would be classified as temporary equity as they would be contingently redeemable in exchange for a net smelter royalty under circumstances that are not wholly in control of the Company or South32 and are not currently probable. No portion of the equity value has been classified as temporary equity as the South32 Option has no intrinsic value. On October 11, 2019, the Company and its subsidiary Minera Metalin issued a notice of force majeure to South32 pursuant to the South32 Option Agreement. Due to a blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (“Mineros Norteños”), the Company has temporarily halted all work on the Sierra Mojada Property. The notice of force majeure was issued because of the blockade’s impact on the ability of the Company and its subsidiary Minera Metalin to perform their obligations under the South32 Option Agreement. Pursuant to the South32 Option Agreement, any time period provided for in the South32 Option Agreement will generally be extended by a period equal to the period of delay caused by the event of force majeure. As of January 28, 2021, the blockade by Mineros Norteños at, on and around the Sierra Mojada Property is ongoing. The combined carrying amount of the assets and liabilities of Minera Metalin and Contratistas (consolidated with their wholly-owned subsidiary) are as follows at October 31, 2020: Assets: Mexico Cash and cash equivalents $ 9,000 Value-added tax receivable, net 220,000 Other receivables 4,000 Income tax receivable 1,000 Prepaid expenses and deposits 100,000 Office and mining equipment, net 192,000 Property concessions 5,020,000 Total assets $ 5,546,000 Liabilities: Accounts payable 51,000 Accrued liabilities and expenses 187,000 Payable to Silver Bull Resources, Inc. to be converted to equity upon exercise of the South 32 Option 3,621,000 Total liabilities $ 3,859,000 Net advances and investment in the Company’s Mexican subsidiaries $ 1,687,000 In addition, at October 31, 2020, Silver Bull Resources, Inc. held $nil of cash received from South32, which is to be contributed to the capital of the Mexican subsidiaries as required for exploration. Cash received from South32 is required to be used to further exploration at the Sierra Mojada Property. The Company’s maximum exposure to loss at October 31, 2020 is $5,308,000, which includes the carrying value of the VIEs’ net assets, excluding the payable to Silver Bull Resources, Inc. |
VALUE-ADDED TAX RECEIVABLE
VALUE-ADDED TAX RECEIVABLE | 12 Months Ended |
Oct. 31, 2020 | |
Receivables [Abstract] | |
VALUE-ADDED TAX RECEIVABLE | NOTE 4 – VALUE-ADDED TAX RECEIVABLE Value-added tax (“VAT”) receivable relates to VAT paid in Mexico. The Company estimates net VAT of $219,804 will be received within 12 months of the balance sheet date. The allowance for uncollectible VAT 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. A summary of the changes in the allowance for uncollectible VAT for the fiscal years ended October 31, 2020 and 2019 is as follows: Allowance for uncollectible VAT – October 31, 2018 $ 98,414 Provision for uncollectible VAT 222,130 Foreign currency translation adjustment 7,080 Allowance for uncollectible VAT – October 31, 2019 327,624 Provision for uncollectible VAT 49,619 Foreign currency translation adjustment (32,184 ) Allowance for uncollectible VAT – October 31, 2020 $ 345,059 |
LOAN RECEIVABLE
LOAN RECEIVABLE | 12 Months Ended |
Oct. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOAN RECEIVABLE | NOTE 5 – LOAN RECEIVABLE On August 24, 2020, the Company loaned $360,000 to Ekidos Minerals LLP, an unrelated third-party Kazakh entity, relating to the acquisition of mineral property concessions in Kazakhstan. The loan is interest free and is to be repaid on January 31, 2021. |
OFFICE AND MINING EQUIPMENT
OFFICE AND MINING EQUIPMENT | 12 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
OFFICE AND MINING EQUIPMENT | NOTE 6 – OFFICE AND MINING EQUIPMENT The following is a summary of the Company’s office and mining equipment at October 31, 2020 and October 31, 2019: October 31, October 31, 2020 2019 Mining equipment $ 444,202 $ 396,152 Vehicles 92,873 92,873 Buildings and structures 185,724 185,724 Computer equipment and software 74,236 74,236 Well equipment 39,637 39,637 Office equipment 47,597 47,597 884,269 836,219 Less: Accumulated depreciation (644,500 ) (609,806 ) Office and mining equipment, net $ 239,769 $ 226,413 |
PROPERTY CONCESSIONS
PROPERTY CONCESSIONS | 12 Months Ended |
Oct. 31, 2020 | |
PROPERTY CONCESSIONS [Abstract] | |
PROPERTY CONCESSIONS | NOTE 7 – PROPERTY CONCESSIONS The following is a summary of the Company’s property concessions in Sierra Mojada, Mexico as at October 31, 2020 and 2019: Property Concessions – October 31, 2018 $ 5,019,927 Acquisitions 11,821 Impairment (11,821 ) Property Concessions – October 31, 2020 and 2019 $ 5,019,927 |
GOODWILL
GOODWILL | 12 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 8 – GOODWILL Goodwill represents the excess, at the date of acquisition, of the purchase price of the business acquired over the fair value of the net tangible and intangible assets acquired. The following is a summary of the Company’s goodwill balance as at October 31, 2020 and 2019: Goodwill – October 31, 2020 and 2019 $ 2,058,031 |
LOAN PAYABLE
LOAN PAYABLE | 12 Months Ended |
Oct. 31, 2020 | |
Loan Payable | |
LOAN PAYABLE | NOTE 9 – LOAN PAYABLE In June 2020, the Company received $29,531 ($CDN 40,000) in the form of a Canada Emergency Business Account (“CEBA”) loan. CEBA is part of the economic assistance program launched by the Government of Canada to ensure that businesses have access to capital during the COVID-19 pandemic that can only be used to pay non-deferrable operating expenses. During the period from receipt of the CEBA loan to December 31, 2022 (the “Initial Term”), no interest will be charged on the principal amount outstanding. If at least $CDN 30,000 is repaid on or before the end of the Initial Term, the remaining $CDN 10,000 of principal will be forgiven pursuant to the terms of the CEBA loan. During the period from January 1, 2023 to December 31, 2025 (the “Extended Term”), if any portion of the loan remains outstanding, interest will be payable monthly at a rate of 5% per annum on the outstanding principal balance. The balance of the CEBA loan is fully repayable on or before the end of the Extended Term, if not repaid on or before the end of the Initial Term. Loan payable – October 31, 2019 $ — Loan payable received – June 2020 29,531 Foreign currency translation adjustment 503 Loan payable – October 31, 2020 $ 30,034 |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Oct. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | NOTE 10 – COMMON STOCK On September 18, 2020, the Company completed a one-for-eight reverse stock split of its shares of common stock. As a result of the reverse stock split, every eight pre-split shares of issued and outstanding common stock of the Company were combined and reclassified into one post-split share of common stock of the Company. No fractional shares were issued in connection with the reverse stock split. Any fractional share that otherwise would have been issued as a result of the reverse stock split was rounded up to the nearest whole share. In connection with the reverse stock split, the 300,000,000 pre-split authorized shares of common stock were proportionately reduced to 37,500,000 post-split authorized shares of Company common stock. The $0.01 par value per share of common stock and other terms of the common stock were not affected by the reverse stock split. The Company’s outstanding shares of common stock and shares underlying the Company’s options and warrants entitling the holders to purchase shares of common stock have been adjusted as a result of the reverse stock split, as required by the terms of these securities. In addition, the number of shares reserved for issuance under the Company existing 2019 Stock Option and Stock Bonus Plan were reduced proportionately based on the split ratio. The current financial statements as well as prior period financial statements have been retroactively adjusted to reflect the impact of the reverse stock split. On October 27, 2020, the Company completed the initial tranche of a two-tranche private placement (the “Private Placement”) for 3,623,580 units (each, a “Unit”) at a purchase price of $0.47 per Unit for gross proceeds of $1,703,083. Each Unit consists of one share of the Company’s common stock and one half of one transferable common stock purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one share of common stock at a price of $0.59 until October 27, 2025. The Company paid a 4% finder’s fee totaling $26,000 to an agent with respect to certain purchasers who were introduced by the agent. The Company incurred other offering costs associated with the initial tranche of the Private Placement of $98,456. Subscribers of the initial tranche of the Private Placement included management and directors for a total 840,000 units and gross proceeds of $394,800. No options to acquire shares of common stock were exercised during the year ended October 31, 2020. On March 6, 2019, 57,500 warrants to acquire 57,500 shares of common stock were exercised at an exercise price of $CDN 1.04 per share of common stock for aggregate gross proceeds of $44,560 ($CDN 59,800). On February 21, 2019, 75,000 warrants to acquire 75,000 shares of common stock were exercised at an exercise price of $CDN 1.04 per share of common stock for aggregate gross proceeds of $59,109 ($CDN 78,000). On January 30, 2019, 50,000 warrants to acquire 50,000 shares of common stock were exercised at an exercise price of $CDN 1.04 per share of common stock for aggregate gross proceeds of $39,418 ($CDN 52,000). The Company incurred costs of $210 related to warrant exercises in the year ended October 31, 2019. |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | NOTE 11 – STOCK OPTIONS The Company has one stock option plan under which equity securities are authorized for issuance to officers, directors, employees and consultants: the 2019 Stock Option and Stock Bonus Plan (the “2019 Plan”). Under the 2019 Plan, the lesser of (i) 3,750,000 shares or (ii) 10% of the total shares outstanding are reserved for issuance upon the exercise of options or the grant of stock bonuses. The term of the Company’s 2010 Stock Option and Stock Bonus Plan, as amended, expired on or around December 22, 2019. 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 five years. No options were granted or exercised during the year ended October 31, 2020 and October 31, 2019. The following is a summary of stock option activity for the fiscal years ended October 31, 2020 and 2019: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at October 31, 2018 2,368,750 $ 0.88 3.48 $ 429,158 Expired (325,000 ) 1.92 Outstanding at October 31, 2019 2,043,750 0.72 2.83 46,448 Outstanding at October 31, 2020 2,043,750 0.72 1.83 53,546 Exercisable at October 31, 2020 2,043,750 $ 0.72 1.83 $ 53,546 The Company recognized stock-based compensation costs for stock options of $62,417 and $206,756 for the fiscal years ended October 31, 2020 and 2019, respectively. As of October 31, 2020, there remains $nil of total unrecognized compensation expense, which is expected to be recognized over a weighted average period of nil years. Summarized information about stock options outstanding and exercisable at October 31, 2020 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 $ 0.45 509,375 0.31 $ 0.45 509,375 $ 0.45 0.75 509,375 1.43 0.75 509,375 0.75 0.78 943,750 2.88 0.78 943,750 0.78 1.29 43,750 2.30 1.29 43,750 1.29 1.53 37,500 0.76 1.53 37,500 1.53 $ 0.45 – 1.53 2,043,750 1.83 $ 0.72 2,043,750 $ 0.72 Stock options granted to consultants with a $CDN exercise price were previously classified as a stock option liability on the Company’s consolidated balance sheets upon vesting. During the year ended October 31, 2020, the stock option liability was reclassified to additional paid-in capital upon adoption of ASU 2018-07, “ Compensation - Stock Compensation (Topic 718).” Stock option liability at October 31, 2018 $ 25,116 Reclassification from additional paid-in capital 792 Change in fair value of stock option liability (21,105 ) Stock option liability at October 31, 2019 $ 4,803 Reclassification from additional paid-in capital (4,803 ) Stock option liability at October 31, 2020 $ — |
WARRANTS
WARRANTS | 12 Months Ended |
Oct. 31, 2020 | |
Warrants and Rights Note Disclosure [Abstract] | |
WARRANTS | NOTE 12 – WARRANTS A summary of warrant activity for the fiscal years ended October 31, 2020 and 2019 is as follows: Warrants Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at October 31, 2018 4,537,530 $ 1.04 1.16 $ 254,068 Exercised (182,500 ) 0.80 Expired (2,379,741 ) 0.80 Outstanding and exercisable at October 31, 2019 1,975,289 $ 1.28 0.75 $ — Issued in the initial tranche of the Private Placement (Note 10) 1,811,789 0.59 Expired (1,975,289 ) 1.28 Outstanding and exercisable at October 31, 2020 1,811,789 $ 0.59 4.99 $ 18,118 During the year ended October 31, 2020, the Company issued 1,811,789 warrants with an exercise price of $0.59 in connection with the Private Placement. No warrants were exercised during the year ended October 31, 2020. Warrants The warrants exercised during the years end October 31, 2019 had an intrinsic value of $12,126. Summarized information about warrants outstanding and exercisable at October 31, 2020 is as follows: Warrants Outstanding and Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $ 0.59 1,811,789 4.99 $ 0.59 |
TAX REFORM AND INCOME TAXES
TAX REFORM AND INCOME TAXES | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
TAX REFORM AND INCOME TAXES | NOTE 13 – TAX REFORM AND INCOME TAXES Provision for Taxes The Tax Act was signed into law on December 22, 2017. The law includes significant changes to the U.S. corporate income tax system, including a federal corporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. The Tax Act required the Company to use a statutory tax rate of 21% for the year ended October 31, 2020 and 2019. The Company files a United States federal income tax return and a Canadian branch return on a fiscal year-end basis and files Mexican income tax returns for its three Mexican subsidiaries on a calendar year-end basis. The Company and two of its wholly-owned subsidiaries, Minera Metalin and Minas, have not generated taxable income since inception. Contratistas, another wholly-owned Mexican subsidiary, has historically generated taxable income based upon intercompany fees billed to Minera Metalin on the services it provides. On April 16, 2010, a wholly-owned subsidiary of the Company was merged with and into Dome, resulting in Dome becoming a wholly-owned subsidiary of the Company. Dome, a Delaware corporation, files a tax return in the United States as part of the Company’s consolidated tax return. The components of loss before income taxes were as follows: For the year ended October 31, 2020 2019 United States $ (1,695,000 ) $ (1,155,000 ) Foreign (523,000 ) (2,778,000 ) Loss before income taxes $ (2,218,000 ) $ (3,933,000 ) The components of the provision for income taxes are as follows: For the year ended October 31, 2020 2019 Current tax expense $ 7,942 $ 5,309 Deferred tax expense — — $ 7,942 $ 5,309 The Company’s provision for income taxes for the fiscal year ended October 31, 2020 consisted of a tax expense of $7,942 related to a provision for income taxes for the Silver Bull and Dome Canadian branch return for the fiscal year ended October 31, 2020. The reconciliation of the provision for income taxes computed at the U.S. statutory rate to the provision for income tax as shown in the statement of operations and comprehensive loss is as follows: For the year ended October 31, 2020 2019 Income tax benefit calculated at U.S. federal income tax rate $ (466,000 ) $ (826,000 ) Differences arising from: Other permanent differences 116,000 81,000 Differences due to foreign income tax rates (47,000 ) (244,000 ) Adjustment to prior year taxes (22,000 ) (28,000 ) Inflation adjustment foreign net operating loss (174,000 ) (258,000 ) Foreign currency fluctuations 638,000 (344,000 ) Decrease in valuation allowance (565,000 ) (403,000 ) Net operation loss carry forwards expiration - United States 159,000 154,000 Net capital loss carry forwards expiration - United States 62,000 — Net operation loss carry forwards expiration - Mexico 307,000 1,873,000 Net income tax provision $ 8,000 $ 5,000 The components of the deferred tax assets at October 31, 2020 and 2019 were as follows: October 31, 2020 2019 Deferred tax assets: Net operating loss carry forwards – U.S. $ 7,502,000 $ 7,359,000 Net capital loss carry forwards – U.S. — 62,000 Net operating loss carry forwards – Mexico 6,080,000 6,656,000 Stock-based compensation – U.S. 8,000 8,000 Exploration costs 777,000 830,000 Other – United States 19,000 30,000 Other – Mexico 23,000 29,000 Total net deferred tax assets 14,409,000 14,974,000 Less: valuation allowance (14,409,000 ) (14,974,000 ) Net deferred tax asset $ — $ — At October 31, 2020, the Company has U.S. net operating loss carry-forwards of approximately $31 million that expire in the years 2021 through 2037 and $4 million which will be carried forward indefinitely. The Company has approximately $20 million of net operating loss carry-forwards in Mexico that expire in the years 2021 through 2030. The valuation allowance for deferred tax assets of $14.4 and $15.0 million at October 31, 2020 and 2019, respectively, relates principally to the uncertainty of the utilization of certain deferred tax assets, primarily net operating loss carry forwards in various tax jurisdictions. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that the deferred tax assets can be realized prior to their expiration. Based on the Company’s assessment, it has determined that the deferred tax assets are not currently realizable. Net Operating Loss Carry Forward Limitation The Tax Reform Act of 1986 contains provisions that limit the utilization of net operating loss and tax credit carry forwards if there has been a change in ownership as described in Section 382 of the Internal Revenue Code. As a result of the Dome merger in April 2010, substantial changes in the Company’s ownership have occurred that may limit or reduce the amount of net operating loss carry forwards that the Company could utilize in the future to offset taxable income. The Company has not completed a detailed Section 382 study at this time to determine what impact, if any, that ownership change may have had on its operating loss carry forwards. In each period since its inception, the Company has recorded a valuation allowance for the full amount of its deferred tax assets, as the realization of the deferred tax asset is uncertain. As a result, the Company has not recognized any federal or state income tax benefit in its consolidated statement of operations and comprehensive loss. Accounting for Uncertainty in Income Taxes During the fiscal years ended October 31, 2020 and 2019, the Company has not identified any unrecognized tax benefits or had any additions or reductions in tax positions and therefore a reconciliation of the beginning and ending amount of unrecognized tax benefits is not presented. The Company does not have any unrecognized tax benefits as of October 31, 2020, and accordingly the Company’s effective tax rate will not be materially affected by unrecognized tax benefits. The following tax years remain open to examination by the Company’s principal tax jurisdictions: United States: 2016 and all following years Mexico: 2015 and all following years Canada: 2016 and all following years The Company has not identified any uncertain tax position for which it is reasonably possible that the total amount of unrecognized tax benefit will significantly increase or decrease within the next 12 months. The Company’s policy is to classify tax related interest and penalties as income tax expense. There is no interest or penalties estimated on the underpayment of income taxes as a result of unrecognized tax benefits. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Oct. 31, 2020 | |
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 measurement. The Company’s financial instruments consist of cash and cash equivalents, accounts payable, stock option liability and warrant derivative liability. The carrying amounts of cash and cash equivalents and accounts payable approximate fair value at October 31, 2020 and 2019 due to the short maturities of these financial instruments. Derivative liability The Company classified warrants with a $CDN exercise price as a derivative liability, which was fair valued at each reporting period subsequent to the initial issuance as the functional currency of Silver Bull is the U.S. dollar. The Company used the Black-Scholes pricing model to determine the fair value of these warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, was based on the historical volatility adjusted to reflect the implicit discount to historical volatilities observed in the prices of traded warrants. The risk-free interest rate was 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 was assumed to be equivalent to their remaining contractual term. The dividend yield was expected to be none as the Company has not paid dividends nor does the Company anticipate paying a dividend in the foreseeable future. All changes in fair value were recorded in the interim Condensed Consolidated Statements of Operations and Comprehensive Loss each reporting period. As of October 31, 2020, the warrants with a $CDN exercise price had been exercised or had expired. The Company reclassified stock options granted to consultants with a $CDN exercise price on its consolidated balance sheets upon vesting as a stock option liability that is fair valued at each reporting period subsequent to reclassification as the functional currency of Silver Bull is the U.S. dollar. The Company has used the Black-Scholes pricing model to fair value these stock options. Determining the appropriate fair-value model and calculating the fair value of these stock options 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 reclassification, and at each subsequent reporting period, is based on the historical volatility of the Company’s common stock and adjusted if future volatility is expected to vary from historical experience. 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 options at the valuation date. The expected life of the options is based upon historical and expected future exercise behavior. The dividend yield is expected to be none as the Company has not paid dividends nor does the Company anticipate paying any dividend in the foreseeable future. During the year ended October 31, 2020, the Company adopted ASU 2018-07, “ Compensation - Stock Compensation (Topic 718),” Credit Risk Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. To mitigate exposure to credit risk on financial assets, the Company has established policies to ensure liquidity of funds and ensure that counterparties demonstrate minimum acceptable credit worthiness. The Company maintains its U.S. dollar and $CDN cash and cash equivalents in bank and demand deposit accounts with major financial institutions with high credit standings. Cash deposits held in Canada are insured by the Canada Deposit Insurance Corporation (“CDIC”) for up to $CDN 100,000. Certain Canadian bank accounts held by the Company exceed these federally insured limits or are uninsured as they related to U.S. dollar deposits held in Canadian financial institutions. As of October 31, 2020 and 2019, the Company’s cash and cash equivalent balances held in Canadian financial institutions included $1,793,270 and $1,296,115, respectively, which was not insured by the CDIC. The Company has not experienced any losses on such accounts and management believes that using major financial institutions with high credit ratings mitigates the credit risk in cash and cash equivalents. The Company also maintains cash in bank accounts in Mexico. These accounts are denominated in the local currency and are considered uninsured. As of October 31, 2020 and 2019, the U.S. dollar equivalent balance for these accounts was $8,739 and $62,024, respectively. Interest Rate Risk The Company holds substantially all of the Company’s cash and cash equivalents in bank and demand deposit accounts with major financial institutions. The interest rates received on these balances may fluctuate with changes in economic conditions. Based on the average cash and cash equivalent balances during the fiscal year ended October 31, 2020, a 1% decrease in interest rates would have resulted in a reduction in interest income for the period of approximately $5,969. 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 | 12 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 – COMMITMENTS AND CONTINGENCIES Compliance with Environmental Regulations The Company’s exploration 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 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”). To date, no royalties have been paid. Litigation and Claims On May 20, 2014, 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. Mineros Norteños sought 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 also sought payment of wages to the cooperative’s members since August 30, 2004, even though none of the individuals were hired or performed work for Minera Metalin under this agreement and Minera Metalin did not commit to hiring them. On January 19, 2015, the case was moved to the Third District Court (of federal jurisdiction). On October 4, 2017, the court ruled that Mineros Norteños was time barred from bringing the case. On October 19, 2017, Mineros Norteños appealed this ruling. On July 31, 2019, the Federal Appeals Court upheld the original ruling. This ruling was subsequently challenged by Mineros Norteños and on January 24, 2020, the Federal Circuit Court ruled that the Federal Appeals Court must consider additional factors in its ruling. In March 2020, the Federal Appeals Court upheld the original ruling after considering these additional factors. In August 2020, Mineros Norteños appealed this ruling, which appeal the Company timely responded and objected to on October 5, 2020. The Company and the Company’s Mexican legal counsel believe that it is unlikely that the court’s ruling will be overturned. The Company has not accrued any amounts in its 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. COVID-19 Global outbreaks of contagious diseases, including the December 2019 outbreak of a novel strain of coronavirus (COVID-19), have the potential to significantly and adversely impact our operations and business. On March 11, 2020, the World Health Organization recognized COVID-19 as a global pandemic. Pandemics or disease outbreaks such as the currently ongoing COVID-19 outbreak may have a variety of adverse effects on our business, including by depressing commodity prices and the market value of our securities and limiting the ability of our management to meet with potential financing sources. The spread of COVID-19 has had, and continues to have, a negative impact on the financial markets, which may impact our ability to obtain additional financing in the near term. A prolonged downturn in the financial markets could have an adverse effect on our business, results of operations and ability to raise capital. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Oct. 31, 2020 | |
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 as follows: For the Year Ended October 31, 2020 2019 Net loss Mexico $ (552,000 ) $ (2,784,000 ) Canada (1,465,000 ) (1,155,000 ) Other (209,000 ) — Net Loss $ (2,226,000 ) $ (3,939,000 ) The following table details allocation of assets included in the accompanying consolidated balance sheets at October 31, 2020: Canada Mexico Total Cash and cash equivalents $ 1,853,000 $ 9,000 $ 1,862,000 Value-added tax receivable, net — 220,000 220,000 Other receivables 10,000 4,000 14,000 Prepaid expenses and deposits 130,000 100,000 230,000 Loan receivable 360,000 — 360,000 Office and mining equipment, net 48,000 192,000 240,000 Property concessions — 5,020,000 5,020,000 Goodwill — 2,058,000 2,058,000 $ 2,401,000 $ 7,603,000 $ 10,004,000 The following table details the allocation of assets included in the accompanying consolidated balance sheet at October 31, 2019: Canada Mexico Total Cash and cash equivalents $ 1,370,000 $ 62,000 $ 1,432,000 Value-added tax receivable, net — 256,000 256,000 Other receivables 4,000 5,000 9,000 Prepaid expenses and deposits 103,000 102,000 205,000 Office and mining equipment, net — 226,000 226,000 Property concessions — 5,020,000 5,020,000 Goodwill — 2,058,000 2,058,000 $ 1,477,000 $ 7,729,000 $ 9,206,000 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 Year Ended October 31, 2020 2019 Exploration and property holding costs for the year Mexico $ (477,000 ) $ (2,553,000 ) Other (203,000 ) — $ (680,000 ) $ (2,553,000 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 – SUBSEQUENT EVENTS On November 9, 2020, the Company completed the second and final tranche of the Private Placement for 319,000 Units for gross proceeds of $149,930 The Company incurred other offering costs associated with the second and final tranche of the Private Placement of $152. Subscribers of the second and final tranche of the Private Placement included management for a total 319,000 units and gross proceeds of $149,930. On December 21, 2020, the Company loaned an additional $400,000 to Ekidos Minerals LLP relating to the acquisition of mineral property concessions in Kazakhstan. This loan is interest free and is to be repaid by June 30, 2021. On August 12, 2020, the Company entered into the Beskauga Option Agreement (the “Beskauga Option Agreement”) with Copperbelt AG (“Copperbelt”) pursuant to which it has the exclusive right and option to acquire Copperbelt’s right, title and 100% interest in the Beskauga property located in Kazakhstan. Upon execution of the Beskauga Option Agreement, the Company paid Copperbelt $30,000. Upon completion of the Company’s due diligence on January 26, 2021, the Beskauga Option Agreement was finalized and the Company paid Copperbelt $40,000. As per the Beskauga Option Agreement, to maintain the effectiveness of the option, the Company must incur the following exploration expenditures: Date Amount (USD $) Within 1 year from Closing Date $2 million Within 2 years from Closing Date $3 million Within 3 years from Closing Date $5 million Within 4 years from Closing Date $5 million The Beskauga Option Agreement also provides that subject to its terms and conditions, after the Company has incurred the above noted exploration expenditures, it may exercise the option and acquire the Beskauga property by paying Copperbelt up to $15,000,000. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) using the accrual method of accounting, except for cash flow amounts. All figures are in United States dollars unless otherwise noted. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, after elimination of intercompany accounts and transactions. The wholly owned subsidiaries of the Company are listed in Note 1 to the consolidated financial statements. The Company consolidates entities in which it has a controlling financial interest based on either the variable interest entity (VIE) or voting interest model. Under the VIE model, a VIE is a reporting entity that has (a) the power to direct the activities that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. Currently, the Company manages the mineral exploration program in the property concessions in Mexico through its wholly-owned subsidiary corporations Minera Metalin and Contratistas. The Company has determined Minera Metalin and Contratistas are variable interest entities and the Company is the primary beneficiary. |
Use of Estimates | Use of Estimates The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates based on assumptions about future events that affect the amounts reported in the consolidated financial statements and related notes to the consolidated financial statements. Actual results could differ from those estimates. Estimates and assumptions are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and assumptions are accounted for prospectively. Significant areas involving the use of estimates include determining the allowance for uncollectible taxes, evaluating recoverability of property concessions, evaluating impairment of long-lived assets, evaluating impairment of goodwill, establishing a valuation allowance on future use of deferred tax assets, calculating a valuation for stock option liability, calculating a valuation for warrant derivative liability and calculating stock-based compensation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly-liquid investments with an original maturity of three months or less at the date of purchase. |
Property Concessions | Property Concessions Property concession acquisition costs are capitalized when incurred and will be amortized using the units of production method following the commencement of production. If a property concession is subsequently abandoned or impaired, any capitalized costs will be expensed in the period of abandonment or impairment. To date, no property concessions have reached the production stage. Acquisition costs include cash consideration and the fair market value of shares issued on the acquisition of property concessions. |
Exploration Costs | Exploration Costs Exploration costs incurred are expensed to the date of establishing that costs incurred are economically recoverable. Exploration expenditures incurred subsequent to the establishment of economic recoverability are capitalized and included in the carrying amount of the related property. To date, the Company has not established the economic recoverability of its exploration prospects; therefore, all exploration costs are being expensed. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost less accumulated depreciation and impairment losses. Assets under construction are depreciated when they are substantially complete and available for their intended use, over their estimated useful lives. Repairs and maintenance of property and equipment are expensed as incurred. Costs incurred to enhance the service potential of property and equipment are capitalized and depreciated over the remaining useful life of the improved asset. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets as follows: · Mining equipment – five to 10 years · Vehicles – four years · Building and structures – 40 years · Computer equipment and software – three years · Well equipment – 10 to 40 years · Office equipment – three to 10 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Management reviews and evaluates its long-lived assets for impairment when events and changes in circumstances indicate that the related carrying amounts of its assets may not be recoverable. Impairment is considered to exist if the future cash flows on an undiscounted basis are less than the carrying amount of the long-lived asset. An impairment loss is measured and recorded based on the difference between book value and fair value of the asset group. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of cash flows from other asset groups. In estimating future cash flows, the Company estimates the price that would be received to sell an asset group in an orderly transaction between market participants at the measurement date. Significant factors that impact this price include the price of silver and zinc, and general market conditions for exploration companies, among other factors. |
Goodwill | Goodwill Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. The Company tests goodwill for impairment at the reporting unit level at least annually, or more frequently if events or changes in circumstances indicate that the assets may be impaired. Goodwill impairment tests require judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The Company performs its annual goodwill impairment tests on April 30 th |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law on December 22, 2017. The law includes significant changes to the U.S. corporate income tax system, including a federal corporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. The law did not have a material impact on the Company’s financial position, results of operations or cash flows and disclosures. The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are determined based on temporary differences between the tax basis and accounting basis of the assets and liabilities measured using tax rates enacted at the balance sheet date. The Company recognizes the tax benefit from uncertain tax positions only if it is at least “more likely than not” that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the taxing authorities. This accounting standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods and disclosure. A valuation allowance is recorded against deferred tax assets if management does not believe that the Company has met the “more likely than not” standard imposed by this guidance to allow recognition of such an asset. Management recorded a full valuation allowance at October 31, 2020 and 2019 against the deferred tax assets as it determined that future realization would not meet the “more likely than not” criteria. |
Warrant Derivative Liability | Warrant Derivative Liability The Company classifies warrants with a Canadian Dollar (“$CDN”) exercise price on its consolidated balance sheets as a derivative liability that 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 fair value the warrants that do not have an acceleration feature and has used the Monte Carlo valuation model to fair value the warrants that do have an acceleration feature. 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 adjusted to reflect the implicit discount to historical volatilities observed in the prices of traded warrants. 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 dividend yield is expected to be none as the Company has not paid dividend nor does the Company anticipate paying any dividend in the foreseeable future. The derivatives warrants are 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. |
Stock-Based Compensation | Stock-Based Compensation The Company uses the Black-Scholes pricing model as a method for determining the estimated fair value for all stock options awarded to employees, officers, directors and consultants. The expected term of the options is based upon an evaluation of historical and expected future exercise behavior. 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 options at the valuation date. Volatility is determined based upon historical volatility of the Company’s stock and adjusted if future volatility is expected to vary from historical experience. The dividend yield is assumed to be none as the Company has not paid dividends nor does the Company anticipate paying any dividends in the foreseeable future. The Company uses the graded vesting attribution method to recognize compensation costs over the requisite service period. Stock options granted to consultants when the exercise price is in $CDN are classified as stock option liability on the Company’s consolidated balance sheets upon vesting. The Company classifies cumulative compensation cost associated with options on subsidiary equity as additional paid-in capital until exercise. |
Loss per Share | Loss per Share Basic loss per share includes no dilution and is computed by dividing net loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted loss per share reflects the potential dilution of securities that could share in the earnings of an entity similar to fully diluted loss per share. Although there were stock options and warrants in the aggregate of 3,855,539 shares and 4,019,039 shares outstanding at October 31, 2020 and 2019, respectively, they were not included in the calculation of loss per share because they would have been considered anti-dilutive. |
Foreign Currency Translation | Foreign Currency Translation During the years ended October 31, 2020 and 2019, the functional currency of Silver Bull Resources, Inc. and its subsidiaries was the U.S. dollar. During the years ended October 31, 2020 and 2019, the Company’s Mexican operations’ monetary assets and liabilities with foreign source currencies were translated into U.S. dollars at the period-end exchange rate and non-monetary assets and liabilities with foreign source currencies were translated using the historical exchange rate. The Company’s Mexican operations’ revenue and expenses were translated at the average exchange rate during the period except for depreciation of office and mining equipment, costs of office and mining equipment sold and impairment of property concessions, all of which are translated using the historical exchange rate. Foreign currency translation gains and losses of the Company’s Mexican operations are included in the consolidated statement of operations. |
Accounting for Loss Contingencies and Legal Costs | Accounting for Loss Contingencies and Legal Costs From time to time, the Company is named as a defendant in legal actions arising from its normal business activities. The Company records an accrual for the estimated loss from a loss contingency when information available prior to issuance of its financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Disclosure of a loss contingency is made by the Company if there is at least a reasonable possibility that a loss has been incurred, and either an accrual has not been made or an exposure to loss exists in excess of the amount accrued. In cases where only disclosure of the loss contingency is required, either the estimated loss or a range of estimated loss is disclosed or it is stated that an estimate cannot be made. Legal costs incurred in connection with loss contingencies are considered period costs and accordingly are expensed in the period services are provided. |
Recent Accounting Pronouncements Adopted in the Year | Recent Accounting Pronouncements Adopted in the Year On November 1, 2019, the Company adopted the Financial Accounting Standards Board’s (the “FASB’s”) Accounting Standards Update (“ASU”) 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”, which became effective for fiscal years beginning after December 15, 2018. ASU 2018-07 simplifies the accounting for nonemployee share-based payments, aligning it more closely with the accounting for employee awards. Under the adoption provisions, equity-classified awards for which a measurement date had already been established as of the adoption date, including the Company’s South32 Option Agreement (Note 3), are unaffected by ASU 2018-07. As a result of this adoption, during the year ended October 31, 2020, the Company reclassified $4,803 from stock option liability to additional paid-in capital (Note 11). On November 1, 2019, the Company adopted the FASB’s ASU 2016-02, “Leases (Topic 842),” together with subsequent amendments, which became effective for fiscal years beginning after December 15, 2018. The new standard requires a lessee to recognize on its balance sheet, a liability to make lease payments (the lease liability) and the right-of-use (“ROU”) asset representing the right to the underlying asset for the lease term and allows companies to elect to apply the standard at the effective date. The Company elected the package of practical expedients permitted under the transition guidance, which applies to expired or existing leases and allows the Company not to reassess whether a contract contains a lease, the lease classification, and any initial direct costs incurred. The Company also elected a number of optional practical expedients including the following: the short-term lease recognition exemption whereby ROU assets and lease liabilities will not be recognized for leasing arrangements with terms less than one year; the land easements practical expedient whereby existing land easements are not reassessed under the new standard; the hindsight practical expedient when determining lease term at transition; and the practical expedient not to apply lease accounting to the intangible right to explore for those natural resources, and rights to use the land in which those natural resources are contained. The adoption of this update did not have an impact on the Company’s financial position, results of operations or cash flows and disclosures. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740),” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020. Early adoption is permitted. At this time, the Company does not expect this standard to affect 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 consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Estimated Useful Lives | Property and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets as follows: · Mining equipment – five to 10 years · Vehicles – four years · Building and structures – 40 years · Computer equipment and software – three years · Well equipment – 10 to 40 years · Office equipment – three to 10 years |
SOUTH32 OPTION AGREEMENT (Table
SOUTH32 OPTION AGREEMENT (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Other Commitments [Abstract] | |
Schedule of Consolidated Assets and Liabilities of Subsidiaries | The combined carrying amount of the assets and liabilities of Minera Metalin and Contratistas (consolidated with their wholly-owned subsidiary) are as follows at October 31, 2020: Assets: Mexico Cash and cash equivalents $ 9,000 Value-added tax receivable, net 220,000 Other receivables 4,000 Income tax receivable 1,000 Prepaid expenses and deposits 100,000 Office and mining equipment, net 192,000 Property concessions 5,020,000 Total assets $ 5,546,000 Liabilities: Accounts payable 51,000 Accrued liabilities and expenses 187,000 Payable to Silver Bull Resources, Inc. to be converted to equity upon exercise of the South 32 Option 3,621,000 Total liabilities $ 3,859,000 Net advances and investment in the Company’s Mexican subsidiaries $ 1,687,000 |
VALUE-ADDED TAX RECEIVABLE (Tab
VALUE-ADDED TAX RECEIVABLE (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Receivables [Abstract] | |
Summary of the Changes in the Allowance for Uncollectible Taxes | A summary of the changes in the allowance for uncollectible VAT for the fiscal years ended October 31, 2020 and 2019 is as follows: Allowance for uncollectible VAT – October 31, 2018 $ 98,414 Provision for uncollectible VAT 222,130 Foreign currency translation adjustment 7,080 Allowance for uncollectible VAT – October 31, 2019 327,624 Provision for uncollectible VAT 49,619 Foreign currency translation adjustment (32,184 ) Allowance for uncollectible VAT – October 31, 2020 $ 345,059 |
OFFICE AND MINING EQUIPMENT (Ta
OFFICE AND MINING EQUIPMENT (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
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 October 31, 2020 and October 31, 2019: October 31, October 31, 2020 2019 Mining equipment $ 444,202 $ 396,152 Vehicles 92,873 92,873 Buildings and structures 185,724 185,724 Computer equipment and software 74,236 74,236 Well equipment 39,637 39,637 Office equipment 47,597 47,597 884,269 836,219 Less: Accumulated depreciation (644,500 ) (609,806 ) Office and mining equipment, net $ 239,769 $ 226,413 |
PROPERTY CONCESSIONS (Tables)
PROPERTY CONCESSIONS (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
PROPERTY CONCESSIONS [Abstract] | |
Summary of Property Concessions | The following is a summary of the Company’s property concessions in Sierra Mojada, Mexico as at October 31, 2020 and 2019: Property Concessions – October 31, 2018 $ 5,019,927 Acquisitions 11,821 Impairment (11,821 ) Property Concessions – October 31, 2020 and 2019 $ 5,019,927 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Goodwill Balance | The following is a summary of the Company’s goodwill balance as at October 31, 2020 and 2019: Goodwill – October 31, 2020 and 2019 $ 2,058,031 |
LOAN PAYABLE (Tables)
LOAN PAYABLE (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Loan Payable | |
Schedule of Loan Payable | Loan payable – October 31, 2019 $ — Loan payable received – June 2020 29,531 Foreign currency translation adjustment 503 Loan payable – October 31, 2020 $ 30,034 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following is a summary of stock option activity for the fiscal years ended October 31, 2020 and 2019: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at October 31, 2018 2,368,750 $ 0.88 3.48 $ 429,158 Expired (325,000 ) 1.92 Outstanding at October 31, 2019 2,043,750 0.72 2.83 46,448 Outstanding at October 31, 2020 2,043,750 0.72 1.83 53,546 Exercisable at October 31, 2020 2,043,750 $ 0.72 1.83 $ 53,546 |
Schedule of Stock Options Outstanding and Exercisable by Exercise Price Range | Summarized information about stock options outstanding and exercisable at October 31, 2020 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 $ 0.45 509,375 0.31 $ 0.45 509,375 $ 0.45 0.75 509,375 1.43 0.75 509,375 0.75 0.78 943,750 2.88 0.78 943,750 0.78 1.29 43,750 2.30 1.29 43,750 1.29 1.53 37,500 0.76 1.53 37,500 1.53 $ 0.45 – 1.53 2,043,750 1.83 $ 0.72 2,043,750 $ 0.72 |
Summary of Stock Option Liability | The following is a summary of the Company’s stock option liability at October 31, 2020 and October 31, 2019: Stock option liability at October 31, 2018 $ 25,116 Reclassification from additional paid-in capital 792 Change in fair value of stock option liability (21,105 ) Stock option liability at October 31, 2019 $ 4,803 Reclassification from additional paid-in capital (4,803 ) Stock option liability at October 31, 2020 $ — |
WARRANTS (Tables)
WARRANTS (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Warrants and Rights Note Disclosure [Abstract] | |
Schedule of Warrant Activity | A summary of warrant activity for the fiscal years ended October 31, 2020 and 2019 is as follows: Warrants Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at October 31, 2018 4,537,530 $ 1.04 1.16 $ 254,068 Exercised (182,500 ) 0.80 Expired (2,379,741 ) 0.80 Outstanding and exercisable at October 31, 2019 1,975,289 $ 1.28 0.75 $ — Issued in the initial tranche of the Private Placement (Note 10) 1,811,789 0.59 Expired (1,975,289 ) 1.28 Outstanding and exercisable at October 31, 2020 1,811,789 $ 0.59 4.99 $ 18,118 |
Schedule of Warrants by Exercise Price Range | Summarized information about warrants outstanding and exercisable at October 31, 2020 is as follows: Warrants Outstanding and Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $ 0.59 1,811,789 4.99 $ 0.59 |
TAX REFORM AND INCOME TAXES (Ta
TAX REFORM AND INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Loss before Income Taxes, by Tax Jurisdiction | The components of loss before income taxes were as follows: For the year ended October 31, 2020 2019 United States $ (1,695,000 ) $ (1,155,000 ) Foreign (523,000 ) (2,778,000 ) Loss before income taxes $ (2,218,000 ) $ (3,933,000 ) |
Schedule of Components of the Provision for Income Taxes | The components of the provision for income taxes are as follows: For the year ended October 31, 2020 2019 Current tax expense $ 7,942 $ 5,309 Deferred tax expense — — $ 7,942 $ 5,309 |
Reconciliation of U.S. Statutory Tax Rate to the Provision for Income Tax | The reconciliation of the provision for income taxes computed at the U.S. statutory rate to the provision for income tax as shown in the statement of operations and comprehensive loss is as follows: For the year ended October 31, 2020 2019 Income tax benefit calculated at U.S. federal income tax rate $ (466,000 ) $ (826,000 ) Differences arising from: Other permanent differences 116,000 81,000 Differences due to foreign income tax rates (47,000 ) (244,000 ) Adjustment to prior year taxes (22,000 ) (28,000 ) Inflation adjustment foreign net operating loss (174,000 ) (258,000 ) Foreign currency fluctuations 638,000 (344,000 ) Decrease in valuation allowance (565,000 ) (403,000 ) Net operation loss carry forwards expiration - United States 159,000 154,000 Net capital loss carry forwards expiration - United States 62,000 — Net operation loss carry forwards expiration - Mexico 307,000 1,873,000 Net income tax provision $ 8,000 $ 5,000 |
Schedule of the Components of Deferred Tax Assets | The components of the deferred tax assets at October 31, 2020 and 2019 were as follows: October 31, 2020 2019 Deferred tax assets: Net operating loss carry forwards – U.S. $ 7,502,000 $ 7,359,000 Net capital loss carry forwards – U.S. — 62,000 Net operating loss carry forwards – Mexico 6,080,000 6,656,000 Stock-based compensation – U.S. 8,000 8,000 Exploration costs 777,000 830,000 Other – United States 19,000 30,000 Other – Mexico 23,000 29,000 Total net deferred tax assets 14,409,000 14,974,000 Less: valuation allowance (14,409,000 ) (14,974,000 ) Net deferred tax asset $ — $ — |
Schedule of Open Tax Years | The following tax years remain open to examination by the Company’s principal tax jurisdictions: United States: 2016 and all following years Mexico: 2015 and all following years Canada: 2016 and all following years |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Net Income (Loss) by Segment | Geographic information is approximately as follows: For the Year Ended October 31, 2020 2019 Net loss Mexico $ (552,000 ) $ (2,784,000 ) Canada (1,465,000 ) (1,155,000 ) Other (209,000 ) — Net Loss $ (2,226,000 ) $ (3,939,000 ) |
Schedule of the Allocation of Assets by Segment | The following table details allocation of assets included in the accompanying consolidated balance sheets at October 31, 2020: Canada Mexico Total Cash and cash equivalents $ 1,853,000 $ 9,000 $ 1,862,000 Value-added tax receivable, net — 220,000 220,000 Other receivables 10,000 4,000 14,000 Prepaid expenses and deposits 130,000 100,000 230,000 Loan receivable 360,000 — 360,000 Office and mining equipment, net 48,000 192,000 240,000 Property concessions — 5,020,000 5,020,000 Goodwill — 2,058,000 2,058,000 $ 2,401,000 $ 7,603,000 $ 10,004,000 The following table details the allocation of assets included in the accompanying consolidated balance sheet at October 31, 2019: Canada Mexico Total Cash and cash equivalents $ 1,370,000 $ 62,000 $ 1,432,000 Value-added tax receivable, net — 256,000 256,000 Other receivables 4,000 5,000 9,000 Prepaid expenses and deposits 103,000 102,000 205,000 Office and mining equipment, net — 226,000 226,000 Property concessions — 5,020,000 5,020,000 Goodwill — 2,058,000 2,058,000 $ 1,477,000 $ 7,729,000 $ 9,206,000 |
Schedule of Allocation of Exploration and Property Holding Costs for Exploration Properties | The following table details the allocation of exploration and property holding costs for the exploration properties: For the Year Ended October 31, 2020 2019 Exploration and property holding costs for the year Mexico $ (477,000 ) $ (2,553,000 ) Other (203,000 ) — $ (680,000 ) $ (2,553,000 ) |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Subsequent Events [Abstract] | |
Schedule of Exploration Expenditures to Maintain Effectiveness of Option Agreement | As per the Beskauga Option Agreement, to maintain the effectiveness of the option, the Company must incur the following exploration expenditures: Date Amount (USD $) Within 1 year from Closing Date $2 million Within 2 years from Closing Date $3 million Within 3 years from Closing Date $5 million Within 4 years from Closing Date $5 million |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN [Abstract] | |||
Accumulated deficit | $ 132,019,148 | $ 129,793,599 | |
Cash and cash equivalents | $ 1,861,518 | $ 1,431,634 | $ 3,025,839 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Anti-dilutive shares, stock options and warrants outstanding | 3,855,539 | 4,019,039 |
Reduce Corporate tax rate | 21.00% | 35.00% |
Accounting Standards Update 2018-07 [Member] | ||
Amount reclassified from stock option liability to additional paid-in capital | $ 4,803 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Oct. 31, 2020 | |
Mining equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Mining equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 4 years |
Buildings and structures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 40 years |
Computer equipment and software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Well equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
Well equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 40 years |
Office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
SOUTH32 OPTION AGREEMENT (Narra
SOUTH32 OPTION AGREEMENT (Narrative) (Details) - USD ($) | Jun. 01, 2018 | Nov. 30, 2020 | Apr. 30, 2019 | Oct. 31, 2020 | Oct. 31, 2019 |
Property concessions funding | $ 1,100,731 | $ 2,540,810 | |||
South32 Limited [Member] | |||||
Option period | 4 years | ||||
Percentage of owned | 100.00% | ||||
Property concessions funding | $ 3,144,163 | 319,430 | |||
Payment received | $ 6,000,000 | ||||
Cash to be contributed to the capital of the Mexican subsidiaries as required for exploration | |||||
Mexican subsidiaries maximum loss exposure | 5,308,000 | ||||
South32 Limited [Member] | 2 year [Member] | |||||
Contribution of minimum exploration fund | 6,000,000 | ||||
Property concessions funding, amount remaining | $ 1,420,161 | ||||
South32 Limited [Member] | 2 year [Member] | Subsequent Event [Member] | |||||
Payment received | $ 60,286 | ||||
South32 Limited [Member] | 1 year [Member] | |||||
Contribution of minimum exploration fund | 3,000,000 | ||||
South32 Limited [Member] | 3 year [Member] | |||||
Contribution of minimum exploration fund | 8,000,000 | ||||
South32 Limited [Member] | 4 year [Member] | |||||
Contribution of minimum exploration fund | 10,000,000 | ||||
Minera Metalin [Member] | |||||
Contribution to acquired shares | $ 100,000,000 | ||||
Percentage of owned | 70.00% |
SOUTH32 OPTION AGREEMENT (Sched
SOUTH32 OPTION AGREEMENT (Schedule of Consolidated Assets and Liabilities of Subsidiaries) (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Assets: | |||
Cash and cash equivalents | $ 1,861,518 | $ 1,431,634 | $ 3,025,839 |
Value-added tax receivable, net | 219,804 | 255,847 | |
Other receivables | 14,387 | 8,543 | |
Prepaid expenses and deposits | 229,647 | 204,713 | |
Office and mining equipment, net | 239,769 | 226,413 | |
Property concessions | 5,019,927 | 5,019,927 | 5,019,927 |
TOTAL ASSETS | 10,003,713 | 9,205,892 | |
Liabilities: | |||
Accounts payable | 499,057 | 328,943 | |
Accrued liabilities and expenses | 383,718 | 305,446 | |
TOTAL LIABILITIES | 917,809 | 641,017 | |
Net advances and investment in the Company's Mexican subsidiaries | 9,085,904 | $ 8,564,875 | $ 9,601,668 |
Minera Metalin and Contratistas [Member] | |||
Assets: | |||
Cash and cash equivalents | 9,000 | ||
Value-added tax receivable, net | 220,000 | ||
Other receivables | 4,000 | ||
Income tax receivable | 1,000 | ||
Prepaid expenses and deposits | 100,000 | ||
Office and mining equipment, net | 192,000 | ||
Property concessions | 5,020,000 | ||
TOTAL ASSETS | 5,546,000 | ||
Liabilities: | |||
Accounts payable | 51,000 | ||
Accrued liabilities and expenses | 187,000 | ||
Payable to Silver Bull Resources, Inc. to be converted to equity upon exercise of the South 32 Option | 3,621,000 | ||
TOTAL LIABILITIES | 3,859,000 | ||
Net advances and investment in the Company's Mexican subsidiaries | $ 1,687,000 |
VALUE-ADDED TAX RECEIVABLE (Nar
VALUE-ADDED TAX RECEIVABLE (Narrative) (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Receivables [Abstract] | ||
Value-added tax receivable, current | $ 219,804 | $ 255,847 |
VALUE-ADDED TAX RECEIVABLE (Sum
VALUE-ADDED TAX RECEIVABLE (Summary of the Changes in the Allowance for Uncollectible Taxes) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Receivables [Abstract] | ||
Allowance for uncollectible VAT, beginning balance | $ 327,624 | $ 98,414 |
Provision for uncollectible VAT | 49,619 | 222,130 |
Foreign currency translation adjustment | (32,184) | 7,080 |
Allowance for uncollectible VAT, ending balance | $ 345,059 | $ 327,624 |
LOAN RECEIVABLE (Details)
LOAN RECEIVABLE (Details) | Aug. 24, 2020USD ($) |
Ekidos Minerals LLP [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans receivable | $ 360,000 |
OFFICE AND MINING EQUIPMENT (Su
OFFICE AND MINING EQUIPMENT (Summary of Office and Mining Equipment) (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | $ 884,269 | $ 836,219 |
Less: Accumulated depreciation | (644,500) | (609,806) |
Office and mining equipment, net | 239,769 | 226,413 |
Mining equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 444,202 | 396,152 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 92,873 | 92,873 |
Buildings and structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 185,724 | 185,724 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office and mining equipment, gross | 74,236 | 74,236 |
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 | $ 47,597 |
PROPERTY CONCESSIONS (Summary o
PROPERTY CONCESSIONS (Summary of Property Concessions) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
PROPERTY CONCESSIONS [Abstract] | ||
Property Concessions, beginning balance | $ 5,019,927 | $ 5,019,927 |
Acquisitions | 11,821 | |
Impairment | (11,821) | |
Property Concessions, ending balance | $ 5,019,927 | $ 5,019,927 |
GOODWILL (Summary of the Goodwi
GOODWILL (Summary of the Goodwill Balance) (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill - October 31, 2020 and 2019 | $ 2,058,031 | $ 2,058,031 |
LOAN PAYABLE (Narrative) (Detai
LOAN PAYABLE (Narrative) (Details) - Canada Emergency Business Account Loan [Member] | 12 Months Ended | ||
Oct. 31, 2020CAD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020CAD ($) | |
Debt Instrument [Line Items] | |||
Loan received | $ 29,531 | ||
Maturity date | Dec. 31, 2022 | ||
Extended term | January 1, 2023 to December 31, 2025 | ||
Interest rate | 5.00% | ||
CDN [Member] | |||
Debt Instrument [Line Items] | |||
Loan received | $ 40,000 | ||
Repayment under initial term | $ 30,000 | ||
Principal amount forgiven | $ 10,000 |
LOAN PAYABLE (Schedule of Loan
LOAN PAYABLE (Schedule of Loan Payable) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Loan Payable | ||
Loan payable - October 31, 2019 | ||
Loan payable received - June 2020 | 29,531 | |
Foreign currency translation adjustment | 503 | |
Loan payable - October 31, 2020 | $ 30,034 |
COMMON STOCK (Details)
COMMON STOCK (Details) | Mar. 06, 2019USD ($)shares | Mar. 06, 2019CAD ($)$ / sharesshares | Oct. 27, 2020USD ($)shares | Sep. 18, 2020$ / sharesshares | Feb. 21, 2019USD ($)shares | Feb. 21, 2019CAD ($)$ / sharesshares | Jan. 30, 2019USD ($)shares | Jan. 30, 2019CAD ($)$ / sharesshares | Oct. 31, 2020USD ($)$ / sharesshares | Oct. 31, 2019USD ($)$ / sharesshares |
Class of Stock [Line Items] | ||||||||||
Reverse stock split | one-for-eight | |||||||||
Equity stock split | Every eight pre-split shares of issued and outstanding common stock of the Company were combined and reclassified into one post-split share of common stock of the Company. | |||||||||
Common stock, shares authorized | shares | 37,500,000 | 37,500,000 | ||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Proceeds from issuance of common stock | $ 1,668,669 | |||||||||
Warrant issuance cost | $ 210 | |||||||||
Management and Directors [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Units issued during period | shares | 840,000 | |||||||||
Proceeds from issuance of units | $ 394,800 | |||||||||
Placement Agent's Warrants [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Offering costs incurred | $ 98,456 | |||||||||
Pre-split [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized | shares | 300,000,000 | |||||||||
Post-split [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized | shares | 37,500,000 | |||||||||
$0.47 Unit [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Units issued during period | shares | 3,623,580 | |||||||||
Proceeds from issuance of units | $ 1,703,083 | |||||||||
Description of units | Each Warrant entitles the holder thereof to acquire one share of common stock at a price of $0.59 until October 27, 2025. | |||||||||
Finders fee percentage rate paid to agents | 4.00% | |||||||||
Aggregate finders fee costs incurred | $ 26,000 | |||||||||
$CDN 1.04 Unit [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock issued during period, shares | shares | 57,500 | 57,500 | 75,000 | 75,000 | 50,000 | 50,000 | ||||
Proceeds from issuance of common stock | $ 44,560 | $ 59,109 | $ 39,418 | |||||||
Warrant Acquired | shares | 57,500 | 75,000 | 50,000 | |||||||
$CDN 1.04 Unit [Member] | CDN [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Equity issuance, price per share | $ / shares | $ 1.04 | $ 1.04 | $ 1.04 | |||||||
Proceeds from issuance of common stock | $ 59,800 | $ 78,000 | $ 52,000 |
STOCK OPTIONS (Narrative) (Deta
STOCK OPTIONS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation costs recognized during the period | $ 62,417 | $ 206,756 |
Total unrecognized compensation costs related to non-vested share based compensation arrangements granted under qualified stock option plans | ||
Weighted-average period for remaining compensation costs to be recognized | 0 years | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term for options | 5 years | |
Employee Stock Option [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for plan | 1 year | |
Employee Stock Option [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for plan | 2 years | |
2019 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
The number of shares authorized under the plan | 3,750,000 | |
Shares outstanding reserved for issuance upon the exercise of options or the grant of stock bonuses percentage | 10.00% |
STOCK OPTIONS (Summary of Stock
STOCK OPTIONS (Summary of Stock Option Activity) (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Shares | |||
Outstanding, beginning | 2,043,750 | 2,368,750 | |
Expired | (325,000) | ||
Outstanding, ending | 2,043,750 | 2,043,750 | 2,368,750 |
Exercisable, ending | 2,043,750 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning | $ 0.72 | $ 0.88 | |
Expired | 1.92 | ||
Outstanding, ending | 0.72 | 0.72 | $ 0.88 |
Exercisable, ending | $ 0.72 | $ 0.09 | |
Weighted average remaining contractual life, Outstanding | 1 year 9 months 29 days | 2 years 9 months 29 days | 3 years 5 months 23 days |
Weighted average remaining contractual life, Exercisable | 1 year 9 months 29 days | ||
Aggregate intrinsic value, Outstanding | $ 53,546 | $ 46,448 | $ 429,158 |
Exercisable | |||
Aggregate intrinsic value, exercisable | $ 53,546 |
STOCK OPTIONS (Summarized Infor
STOCK OPTIONS (Summarized Information of Stock Options Outstanding and Exercisable) (Details) | 12 Months Ended |
Oct. 31, 2020$ / sharesshares | |
0.45 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Minimum exercise price | $ 0.45 |
Number of options outstanding | shares | 509,375 |
Weighted Average Remaining Contractual Life (Years) | 3 months 22 days |
Options Outstanding - Weighted Average Exercise Price | $ 0.45 |
Number Exercisable | shares | 509,375 |
Options Exercisable - Weighted Average Exercise Price | $ 0.45 |
0.75 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Minimum exercise price | $ 0.75 |
Number of options outstanding | shares | 509,375 |
Weighted Average Remaining Contractual Life (Years) | 1 year 5 months 5 days |
Options Outstanding - Weighted Average Exercise Price | $ 0.75 |
Number Exercisable | shares | 509,375 |
Options Exercisable - Weighted Average Exercise Price | $ 0.75 |
0.78 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Minimum exercise price | $ 0.78 |
Number of options outstanding | shares | 943,750 |
Weighted Average Remaining Contractual Life (Years) | 2 years 10 months 17 days |
Options Outstanding - Weighted Average Exercise Price | $ 0.78 |
Number Exercisable | shares | 943,750 |
Options Exercisable - Weighted Average Exercise Price | $ 0.78 |
1.29 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Minimum exercise price | $ 1.29 |
Number of options outstanding | shares | 43,750 |
Weighted Average Remaining Contractual Life (Years) | 2 years 3 months 19 days |
Options Outstanding - Weighted Average Exercise Price | $ 1.29 |
Number Exercisable | shares | 43,750 |
Options Exercisable - Weighted Average Exercise Price | $ 1.29 |
1.53 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Minimum exercise price | $ 1.53 |
Number of options outstanding | shares | 37,500 |
Weighted Average Remaining Contractual Life (Years) | 9 months 3 days |
Options Outstanding - Weighted Average Exercise Price | $ 1.53 |
Number Exercisable | shares | 37,500 |
Options Exercisable - Weighted Average Exercise Price | $ 1.53 |
0.45 - 1.53 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Minimum exercise price | 0.45 |
Maximum exercise price | $ 1.53 |
Number of options outstanding | shares | 2,043,750 |
Weighted Average Remaining Contractual Life (Years) | 1 year 9 months 29 days |
Options Outstanding - Weighted Average Exercise Price | $ 0.72 |
Number Exercisable | shares | 2,043,750 |
Options Exercisable - Weighted Average Exercise Price | $ 0.72 |
STOCK OPTIONS (Summary of Sto_2
STOCK OPTIONS (Summary of Stock Option Liability) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Stock option liability | $ 4,803 | $ 25,116 |
Reclassification from additional paid-in capital | (4,803) | 792 |
Change in fair value of stock option liability | (21,105) | |
Stock option liability | $ 4,803 |
WARRANTS (Narrative) (Details)
WARRANTS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Warrant [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant Intrinsic value of Exercise | $ 12,126 | |
Private Placement [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants issued | 1,811,789 | |
Exercise price of warrants | $ 0.59 |
WARRANTS (Summary of Warrant Ac
WARRANTS (Summary of Warrant Activity) (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Shares | |||
Expired | (325,000) | ||
Weighted Average Exercise Price | |||
Expired, weighted average exercise price | $ 1.92 | ||
Weighted Average Remaining Contractual Life (Years) | 1 year 9 months 29 days | 2 years 9 months 29 days | 3 years 5 months 23 days |
Weighted Average Remaining Contractual Life Years, Exercisable | 1 year 9 months 29 days | ||
Warrant [Member] | |||
Shares | |||
Outstanding and exercisable | 1,975,289 | 4,537,530 | |
Issued in thei initial tranche of the Private Placement (Note 10) | 1,811,789 | ||
Exercised | (182,500) | ||
Expired | (1,975,289) | (2,379,741) | |
Outstanding and exercisable | 1,811,789 | 1,975,289 | 4,537,530 |
Weighted Average Exercise Price | |||
Outstanding and exercisable | $ 1.28 | $ 1.04 | |
Issued in thei initial tranche of the Private Placement (Note 10), weighted average exercise price | 0.59 | ||
Exercised, weighted average exercise price | 0.80 | ||
Expired, weighted average exercise price | 1.28 | 0.80 | |
Outstanding and exercisable | $ 0.59 | $ 1.28 | $ 1.04 |
Weighted Average Remaining Contractual Life (Years) | 1 year 8 months 12 days | ||
Weighted Average Remaining Contractual Life Years, Exercisable | 4 years 11 months 26 days | 9 months | |
Aggregate intrinsic value | $ 18,118 | $ 254,068 |
WARRANTS (Summary of Warrants O
WARRANTS (Summary of Warrants Outstanding and Exercisable by Price Range) (Details) | 12 Months Ended |
Oct. 31, 2020$ / sharesshares | |
Warrants and Rights Note Disclosure [Abstract] | |
Exercise price | $ 0.59 |
Warrants and Exercisable outstanding | shares | 1,811,789 |
Weighted Remaining Average Contractual Life (Years) | 4 years 11 months 26 days |
Weighted average exercise price, outstanding | $ 0.59 |
TAX REFORM AND INCOME TAXES (Na
TAX REFORM AND INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||
Corporate tax rate | 21.00% | 35.00% |
Statutory tax rate | 21.00% | 21.00% |
Internal Revenue Service (IRS) [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carry forwards | $ 31 | |
Internal Revenue Service (IRS) [Member] | Carried forward indefinitely [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carry forwards | $ 4 | |
Internal Revenue Service (IRS) [Member] | Minimum [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carry forwards, expiration dates | Dec. 31, 2021 | |
Internal Revenue Service (IRS) [Member] | Maximum [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carry forwards, expiration dates | Dec. 31, 2037 | |
Mexican Tax Authority [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carry forwards | $ 20 | |
Mexican Tax Authority [Member] | Minimum [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carry forwards, expiration dates | Dec. 31, 2021 | |
Mexican Tax Authority [Member] | Maximum [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carry forwards, expiration dates | Dec. 31, 2030 |
TAX REFORM AND INCOME TAXES (Sc
TAX REFORM AND INCOME TAXES (Schedule of Components of Loss before Income Taxes, by Tax Jurisdiction) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Loss before income taxes | $ (2,217,607) | $ (3,933,260) |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Loss before income taxes | (1,695,000) | (1,155,000) |
Foreign [Member] | ||
Segment Reporting Information [Line Items] | ||
Loss before income taxes | $ (523,000) | $ (2,778,000) |
TAX REFORM AND INCOME TAXES (Co
TAX REFORM AND INCOME TAXES (Components of the Provision for Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current tax expense | $ 7,942 | $ 5,309 |
Deferred tax expense | ||
Net income tax provision | $ 7,942 | $ 5,309 |
TAX REFORM AND INCOME TAXES (Re
TAX REFORM AND INCOME TAXES (Reconciliation of the Provision For Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit calculated at U.S. Federal Income tax rate | $ (466,000) | $ (826,000) |
Differences arising from: | ||
Other permanent differences | 116,000 | 81,000 |
Differences due to foreign income tax rates | (47,000) | (244,000) |
Adjustment to prior year taxes | (22,000) | (28,000) |
Inflation adjustment foreign net operating loss | (174,000) | (258,000) |
Foreign currency fluctuations | 638,000 | (344,000) |
Decrease in valuation allowance | (565,000) | (403,000) |
Net operation loss carry forwards expiration - United States | 159,000 | 154,000 |
Net capital loss carry forwards expiration - United States | 62,000 | |
Net operation loss carry forwards expiration - Mexico | 307,000 | 1,873,000 |
Net income tax provision | $ 8,000 | $ 5,000 |
TAX REFORM AND INCOME TAXES (_2
TAX REFORM AND INCOME TAXES (Components of Deferred Tax Assets) (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carry forwards - U.S. | $ 7,502,000 | $ 7,359,000 |
Net capital loss carry forwards - U.S. | 62,000 | |
Net operating loss carry forwards - Mexico | 6,080,000 | 6,656,000 |
Stock-based compensation - U.S. | 8,000 | 8,000 |
Exploration costs | 777,000 | 830,000 |
Other - United States | 19,000 | 30,000 |
Other - Mexico | 23,000 | 29,000 |
Total net deferred tax assets | 14,409,000 | 14,974,000 |
Less: valuation allowance | (14,409,000) | (14,974,000) |
Net deferred tax asset |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Value of total cash accounts held in Mexico and Gabon | $ 8,739 | $ 62,024 |
Effect of a 1% decrease in interest rates on interest income | 5,969 | |
CDN [Member] | ||
Cash balance insured by CDIC per financial institution | 100,000 | |
Cash balances not insured | $ 1,793,270 | $ 1,296,115 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Royalty) (Details) - Sierra Mojada [Member] | Oct. 31, 2020USD ($) |
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 CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Litigation and Claims) (Details) | 12 Months Ended |
Oct. 31, 2020 | |
Litigation and Claims: | |
Interest rate sought on the Royalty | 6.00% |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Segment Net Loss) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Loss from Continuing Operations | $ (2,226,000) | $ (3,939,000) |
Mexico [Member] | ||
Segment Reporting Information [Line Items] | ||
Loss from Continuing Operations | (552,000) | (2,784,000) |
Canada [Member] | ||
Segment Reporting Information [Line Items] | ||
Loss from Continuing Operations | (1,465,000) | (1,155,000) |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Loss from Continuing Operations | $ (209,000) |
SEGMENT INFORMATION (Schedule_2
SEGMENT INFORMATION (Schedule of Segment Assets) (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | $ 1,862,000 | $ 1,432,000 | |
Value-added tax receivable, net | 219,804 | 255,847 | |
Other receivables | 14,387 | 8,543 | |
Prepaid expenses and deposits | 229,647 | 204,713 | |
Loan receivable | 360,050 | ||
Office and mining equipment, net | 239,769 | 226,413 | |
Property concessions | 5,019,927 | 5,019,927 | $ 5,019,927 |
Goodwill | 2,058,031 | 2,058,031 | |
TOTAL ASSETS | 10,003,713 | 9,205,892 | |
Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 1,853,000 | 1,370,000 | |
Value-added tax receivable, net | |||
Other receivables | 10,000 | 4,000 | |
Prepaid expenses and deposits | 130,000 | 103,000 | |
Loan receivable | 360,000 | ||
Office and mining equipment, net | 48,000 | ||
Property concessions | |||
Goodwill | |||
TOTAL ASSETS | 2,401,000 | 1,477,000 | |
Mexico [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 9,000 | 62,000 | |
Value-added tax receivable, net | 220,000 | 256,000 | |
Other receivables | 4,000 | 5,000 | |
Prepaid expenses and deposits | 100,000 | 102,000 | |
Loan receivable | |||
Office and mining equipment, net | 192,000 | 226,000 | |
Property concessions | 5,020,000 | 5,020,000 | |
Goodwill | 2,058,000 | 2,058,000 | |
TOTAL ASSETS | $ 7,603,000 | $ 7,729,000 |
SEGMENT INFORMATION (Schedule_3
SEGMENT INFORMATION (Schedule of Allocation of Exploration and Property Holding Costs for Exploration Properties) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Exploration and property holding costs for the period | $ 680,395 | $ 2,552,721 |
Mexico [Member] | ||
Segment Reporting Information [Line Items] | ||
Exploration and property holding costs for the period | (477,000) | (2,553,000) |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Exploration and property holding costs for the period | $ (203,000) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Jan. 26, 2021 | Nov. 09, 2020 | Aug. 12, 2020 | Oct. 27, 2020 | Dec. 21, 2020 | Aug. 24, 2020 |
Subsequent Event [Line Items] | ||||||
Amount paid upon execution of the Beskauga Option Agreement | $ 30,000 | |||||
Within 1 year from Closing Date | 2,000,000 | |||||
Within 2 years from Closing Date | 3,000,000 | |||||
Within 3 years from Closing Date | 5,000,000 | |||||
Within 4 years from Closing Date | 5,000,000 | |||||
Amount that can be paid to acquire the Beskauga property after all exploration expenditures are paid | $ 15,000,000 | |||||
Ekidos Minerals LLP [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Loans receivable | $ 360,000 | |||||
Management and Directors [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Units issued during period | 840,000 | |||||
Proceeds from issuance of units | $ 394,800 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Amount paid upon the finalization of the Beskauga Option Agreement | $ 40,000 | |||||
Subsequent Event [Member] | Ekidos Minerals LLP [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Loans receivable | $ 400,000 | |||||
Subsequent Event [Member] | Private Placement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Units issued during period | 319,000 | |||||
Proceeds from issuance of units | $ 149,930 | |||||
Offering costs incurred | $ 152 | |||||
Subsequent Event [Member] | Private Placement [Member] | Management and Directors [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Units issued during period | 319,000 | |||||
Proceeds from issuance of units | $ 149,930 |