Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
May 31, 2016 | Sep. 15, 2016 | Nov. 30, 2015 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | May 31, 2016 | ||
Trading Symbol | sggv | ||
Entity Registrant Name | STERLING GROUP VENTURES INC | ||
Entity Central Index Key | 1,175,416 | ||
Current Fiscal Year End Date | --05-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 75,730,341 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Public Float | $ 874,805 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | May 31, 2016 | May 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 907,158 | $ 1,433,109 |
Prepaid expenses and other receivables | 12,620 | 12,762 |
Total current assets | 919,778 | 1,445,871 |
Equipment | 71,422 | 108,309 |
Environmental deposit, net of provision | 1 | 127,393 |
Mineral Properties, net of provision | 1 | 3,148,740 |
Total Assets | 991,202 | 4,830,313 |
Current Liabilities | ||
Accounts payable and other accrued liabilities | 426,566 | 420,973 |
Deferred income tax liability | 0 | 732,687 |
Total Liabilities | 426,566 | 1,153,660 |
Stockholders' Equity | ||
Common Stock : $0.001 Par Value Authorized : 500,000,000 Issued and Outstanding : 75,730,341 (May 31, 2015: 75,730,341) | 75,730 | 75,730 |
Additional Paid In Capital | 10,831,422 | 10,831,422 |
Accumulated Other Comprehensive Loss | (20,854) | (582) |
Accumulated deficit | (10,321,662) | (7,229,917) |
Total Stockholders' Equity | 564,636 | 3,676,653 |
Total Liabilities and Stockholders' Equity | $ 991,202 | $ 4,830,313 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | May 31, 2016 | May 31, 2015 |
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 75,730,341 | 75,730,341 |
Common Stock, Shares, Outstanding | 75,730,341 | 75,730,341 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Expenses | ||
Accounting, audit, legal and professional fees | $ 67,451 | $ 76,334 |
Bank charges | 459 | 636 |
Consulting fees | 20,035 | 22,750 |
Depreciation | 32,138 | 44,777 |
Filing fees and transfer agent | 8,610 | 9,752 |
General and administrative | 1,941 | 1,161 |
Travel and entertainment | 7,163 | 0 |
Mineral property costs | 101,774 | 153,538 |
Shareholder information and investor relations | 6,700 | 8,359 |
Due diligence costs | 295,726 | 0 |
Provision of impairment of mineral properties and deposit | 3,271,005 | 0 |
Project development cost | 23,840 | 0 |
Total Operating Expenses | (3,836,842) | (317,307) |
Other items before tax | ||
Interest income | 10,961 | 21,017 |
Finance expense | 0 | (107,006) |
Foreign exchange gain(loss) | 1,449 | 32,964 |
Total other items before tax | 12,410 | (53,025) |
Operating income (loss) | (3,824,432) | (370,332) |
Current and deferred tax | ||
Deferred tax recovery | 732,687 | 0 |
Net loss and Comprehensive loss for the year | $ (3,091,745) | $ (370,332) |
Basic and diluted loss per share | $ (0.04) | $ 0 |
Weighted average number of shares outstanding | 75,730,341 | 75,730,341 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Deficit Accumulated During the Exploration Stage [Member] | Total |
Beginning Balance at May. 31, 2014 | $ 75,730 | $ 10,724,416 | $ (582) | $ (6,859,585) | $ 3,939,979 |
Beginning Balance (Shares) at May. 31, 2014 | 75,730,341 | ||||
Revaluation of share purchase warrants | 107,006 | 107,006 | |||
Net loss for the year | (370,332) | (370,332) | |||
Ending Balance at May. 31, 2015 | $ 75,730 | 10,831,422 | (582) | (7,229,917) | 3,676,653 |
Ending Balance (Shares) at May. 31, 2015 | 75,730,341 | ||||
Issuance of shares (Shares) | 93,000,000 | ||||
Issuance of shares in escrow (Shares) | (93,000,000) | ||||
Net loss for the year | (3,091,745) | (3,091,745) | |||
Translation adjustment | (20,272) | (20,272) | |||
Ending Balance at May. 31, 2016 | $ 75,730 | $ 10,831,422 | $ (20,854) | $ (10,321,662) | $ 564,636 |
Ending Balance (Shares) at May. 31, 2016 | 75,730,341 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Cash flows from operating activities | ||
Net loss for the year | $ (3,091,745) | $ (370,332) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 32,138 | 44,777 |
Stock based compensation | 0 | 107,006 |
Foreign exchange | (9,276) | (2,388) |
Provision of impairments | 3,271,005 | 0 |
Deferred tax recovery | (732,687) | 0 |
Changes in non-cash working capital items | ||
Prepaid expenses and other receivables | (260) | 16,586 |
Accounts payable and accrued liabilities | 23,576 | (615) |
Net cash used in operating activities | (507,249) | (204,966) |
Cash flows from investing activity | ||
Additions to equipment | (733) | (397) |
Net cash used in investing activity | (733) | (397) |
Cash flows from financing activity | ||
Amounts repaid to a director included in accounts payable and other accrued liabilities | (17,969) | (34,976) |
Net cash used in financing activity | (17,969) | (34,976) |
Net decrease in cash and cash equivalents | (525,951) | (240,339) |
Cash and cash equivalents - beginning of the year | 1,433,109 | 1,673,448 |
Cash and cash equivalents - end of the year | $ 907,158 | $ 1,433,109 |
Nature of Operations and Abilit
Nature of Operations and Ability to Continue as a Going Concern | 12 Months Ended |
May 31, 2016 | |
Nature of Operations and Ability to Continue as a Going Concern [Text Block] | Note 1 Nature of Operations and Ability to Continue as a Going Concern Sterling Group Ventures, Inc. was incorporated in the State of Nevada on September 13, 2001 and its fiscal year-end is May 31. On January 20, 2004, the Company acquired all of the issued and outstanding shares of Micro Express Ltd. (“Micro”), which was incorporated on July 27, 1994. The business combination was accounted for as a reverse acquisition whereby the purchase method of accounting was used with Micro being the accounting acquirer and the Company being the accounting subsidiary. Sterling Group Ventures, Inc. (the “Company”) is in the exploration stage. The Company entered into joint venture agreements to explore and develop mineral properties located in China and has not yet determined whether these properties contain reserves that are economically recoverable. The recoverability of amounts from these properties will be dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain necessary financing to satisfy the expenditure requirements under the joint venture agreements and to complete the development of the properties and upon future profitable production or proceeds from the sale thereof. These consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown as these consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. The Company incurred a net loss of $3,091,745 during the year ended May 31, 2016 and, as at that date, had a cumulative loss of $10,321,662 since its inception and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances; however, there is no assurance of additional funding being available. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2016 | |
Summary of Significant Accounting Policies [Text Block] | Note 2 Summary of Significant Accounting Policies The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of consolidated financial statements for a period necessarily involves the use of estimates, which have been made using careful judgement. Actual results may vary from these estimates. The consolidated financial statements have, in management’s opinion, been properly prepared within the framework of the significant accounting policies summarized below: Principles of Consolidation The following subsidiaries were incorporated under the laws of the Territory of the British Virgin Islands on the following dates: Micro Express Holdings Inc. was incorporated on February 25, 2004; Micro Express Ltd. was incorporated on July 27, 1994; Huyana Ventures Limited was incorporated on August 18, 2004; Makaelo Holdings Inc. was incorporated on March 21, 2005, and Makaelo Limited was incorporated on February 14, 2005. Silver Castle Investments Ltd. and Sterling Group Ventures (HK) Limited (formerly Euro Asia Premier Real Estate (HK) Limited) were incorporated in Hong Kong on October 13, 2010, and on October 15, 2014 respectively, and Chenxi County Hongyu Mining Co. Ltd. was incorporated in China on July 4, 2006. These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Micro Express Holdings Inc., Micro Express Ltd., Huyana Ventures Limited, Makaelo Holdings Inc., Makaelo Limited, Sterling Group Ventures (HK) Limited ("Sterling HK"), Silver Castle Investments Ltd. (“Silver Castle”) and its 100% controlled subsidiary, Chenxi County Hongyu Mining Co. Ltd. ("Hongyu"). All inter-company transactions and account balances have been eliminated. Mineral Properties Costs of acquiring mineral properties are capitalized by the project area (Note 3). Costs to maintain mineral rights and leases are expensed as incurred. When a property reaches the production state, the related capitalized costs are amortized using the unit of production method on the basis of annual estimates of ore reserves. Management reviews the carrying value of mineral properties at least annually and will recognize impairment in value based upon current exploration results, and any impairment or subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. Mineral property exploration costs are expensed as incurred. Exploration activities conducted jointly with others are reflected at the Company’s proportionate interest in such activities. As at May 31, 2016 and 2015, the Company did not have proven or probable ore reserves. Impairment of Long-lived Assets In accordance with ASC Topic 360-10, “Property, Plant and Equipment - Overall”, the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. Asset Retirement Obligations The Company recognizes the fair value of a liability for an asset retirement obligation in the year in which it is incurred when a reasonable estimate of fair value can be made. The carrying amount of the related long-lived asset is increased by the same amount as the liability. Changes in the liability for an asset retirement obligation due to the passage of time will be measured by applying an interest method of allocation. The amount will be recognized as an increase in the liability and an accretion expense in the statement of operations. Changes resulting from revisions to the timing or the amount of the original estimate of undiscounted cash flows are recognized as an increase or a decrease in the carrying amount of the liability for an asset retirement obligation and the related asset retirement cost capitalized as part of the carrying amount of the related long-lived asset. No asset retirement obligation was required to be recognized at May 31, 2016 and 2015. Property and Equipment Property and equipment is stated at cost. Depreciation is primarily computed using the straight-line method, by charges to operations in amounts estimated to allocate the cost of the assets over their estimated useful lives, as follows: Asset classification Estimated useful life Computer equipment 3 years Automobile 5 years Office equipment 3 years Machinery 3 to 10 years Income Taxes The Company accounts for income taxes under the provisions of ASC Topic 740, “Income Taxes” ASC Topic 740 contains a two-step approach to recognizing and measuring uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company recognizes interest and penalties accrued on unrecognized tax benefits within general and administrative expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction in general and administrative expenses in the period that such determination is made. The tax returns for fiscal 2012 through 2016 are subject to audit or review by the US tax authority, whereas fiscal 2008 through 2016 are subject to audit or review by the Canadian tax authority. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and judgement by management include: useful lives of long-lived assets, impairment considerations and recoverable analysis on our mineral properties and environmental deposit, deferred taxes and ability to continue as a going concern. While the Company believes that the estimates and assumptions used in the preparation of the consolidation financial statements are appropriate, actual results could differ from those estimates. Fair Value of Financial Instruments The Company applies the provisions of ASC 820, “Fair Value Measurements and Disclosures". ASC 820 defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level I, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company did not have any assets or liabilities stated at fair value utilizing Level 1, Level 2 or Level 3 inputs as at May 31, 2016 or 2015. The Company’s consolidated financial instruments consist of cash, other receivables and accounts payable and accrued liabilities. The carrying values of the Company’s financial instruments approximate fair value due to the short maturity of these instruments. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these consolidated financial instruments. Loss per Share The Company reports basic and diluted loss per share in accordance with the ASC Topic 260-10, “Earnings Per Share - Overall”. Basic loss per share is computed using the weighted average number of shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. In addition, in computing the dilutive effect of convertible securities, the numerator is adjusted to add back any convertible preferred dividend and the after-tax amount of interest in the period associated with any convertible debt. The numerator is also adjusted for any other changes in income or loss that would result from the assumed conversion of these potential common shares. Common share equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company’s net loss position at the calculation date. At May 31, 2016, the Company had 29,770,000 (2015 - 29,770,000) common share equivalents in respect to options and warrants. Because the Company incurred a loss, the dilutive impact of the outstanding options and warrants have been excluded as the impact would be anti-dilutive. Concentration of Credit Risk The Company places its cash and cash equivalents with high credit quality financial institutions in Canada, Hong Kong and China. As of May 31, 2016, the Company’s maximum exposure to credit risk is the carrying value of the Company’s cash, and other receivables. The market in China is monitored by the central government, which could impose taxes or restrictions at any time which would make operations unprofitable and infeasible and cause a write- off of investment in the mineral properties. Other factors include political policy on foreign ownership, political policy to open the doors to foreign investors, and political policy on mineral claims and metal prices. Comprehensive Loss The Company reports comprehensive income (loss) in accordance with ASC Topic 220-10, “Comprehensive Income - Overall”. Comprehensive loss is comprised of foreign currency translation adjustments. Foreign Currency Translation Foreign currency transactions are translated into US dollars, the functional and reporting currency of the Company, by the use of the exchange rate in effect at the date of the transaction, in accordance with ASC Topic 830-20, “Foreign Currency Matters - Foreign Currency Translation”. Assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the period end and capital accounts are translated at historical rates. Income statement accounts are translated at the average rates of exchange prevailing during the period which approximates the exchange rate in effect at the date of the transaction. Translation adjustments from the use of different exchange rates from period to period are included in the Comprehensive Income account in Stockholders’ Equity, if applicable. Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses are included in the Statement of Operations. Stock-based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718-10, Compensation - Stock Compensation – Overall The Company has elected to use the Black-Scholes option pricing model to determine the fair value of the options and the extension of the expiry dates of share purchase warrants previously granted. Recent Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” which changes the presentation of debt issuance costs in the financial statements. Under the ASU, an entity should present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. This new guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015; early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods. The Company is currently evaluating the potential impact of adoption of this guidance on its consolidated financial statements. In August, 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern,” which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the potential impact of adoption of this guidance on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU No. 2015-17”). The guidance eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent amounts in a classified balance sheet. The new standard requires deferred tax assets and liabilities to be classified as noncurrent. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period and may be applied either prospectively or retrospectively to all periods presented. The Company is currently evaluating the potential impact of adoption of this guidance on its consolidated financial statements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ASU No. 2016-02”). The guidance requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The ASU also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. For public companies, the standard will take effect for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2018 with earlier application permitted. The Company is still evaluating the impact of ASU No. 2016-02 on its consolidated financial position and results of operations. In June 2014, the FASB issued Accounting Standard Update (ASU) 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Allow a Performance Target to Be Achieved After the Requisite Service Period,” which requires that a performance target that could be achieved after the requisite service period be treated as a performance condition that affects the vesting of the award. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (i) prospectively to all awards granted or modified after the effective date; or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements. |
Mineral Properties
Mineral Properties | 12 Months Ended |
May 31, 2016 | |
Mineral Properties [Text Block] | Note 3 Mineral Properties A summary of mineral property costs for the cumulative years ended May 31, 2016 and 2015 were incurred and accounted for in the consolidated statement of operations as follows: Gaoping Phosphate Summary of mineral property expenditures Property Balance, May 31, 2014 $ 921,163 Administrative 17,682 Consulting fees 28,307 Engineering 2,181 Mining permit 12,925 Travel & promotion 32,857 Wages and benefits 59,586 Balance, May 31, 2015 $ 1,074,701 Administrative 3,362 Consulting fees 16,323 Mining permit 10,922 Travel & promotion 13,092 Wages and benefits 58,075 Balance, May 31, 2016 $ 1,176,475 Gaoping Phosphate Property During the year ended May 31, 2016, the Company incurred mineral property expenditures of $101,774 (May 31, 2015: $153,538). As of May 31, 2016, the Company has incurred total mineral property costs of $1,176,475 (May 31, 2015: $1,074,701) on this property which have been expensed to the statement of operations as disclosed in the table above. On May 31, 2016, in accordance with its accounting policy, the Company performed an impairment test on the carrying value of the Gaoping Phosphate Property. Due to the prolonged and significant decline in the phosphate price and the lack of planned exploration program on the property, the Company recorded impairment provisions to the mineral properties and its related environmental deposit of $3,147,801 and $123,204, respectively. |
Equipment
Equipment | 12 Months Ended |
May 31, 2016 | |
Equipment [Text Block] | Note 4 Equipment May 31, 2016 May 31, 2015 Accumulated Net Book Accumulated Net Book Cost Depreciation Value Cost Depreciation Value Computer equipment $ 14,742 $ 14,073 $ 669 $ 14,126 $ 13,809 $ 317 Automobile 56,738 47,962 8,776 60,256 38,801 21,455 Office equipment 3,381 3,381 - 3,590 3,590 - Machinery 155,012 93,035 61,977 164,625 78,088 86,537 $ 229,873 $ 158,451 $ 71,422 $ 242,597 $ 134,288 $ 108,309 The depreciation for the year ended May 31, 2016 was $32,138 (May 31, 2015: $44,777). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
May 31, 2016 | |
Related Party Transactions [Text Block] | Note 5 Related Party Transactions The Company was charged consulting fees for administrative, corporate, financial, engineering, and management services during the year ended May 31, 2016 totalling $18,019 (May 31, 2015: $20,728) by companies controlled by a former director and corporate secretary of the Company. Included in accounts payable and accrued liabilities is $397,181 (May 31, 2015: $415,150) which was due to companies controlled by the directors and former directors for their services provided in previous years. These transactions were measured at the amount of consideration established and agreed to by the related parties. |
Capital Stock
Capital Stock | 12 Months Ended |
May 31, 2016 | |
Capital Stock [Text Block] | Note 6 Capital Stock a) Capital Stock There were 93,000,000 shares issued in escrow during the year ended May 31, 2016 in connection with the Purchase and Sale Agreement (Note 10). There was no share issuance during the year ended May 31, 2015. b) Stock Options There were no stock options granted during the years ended May 31, 2016 and 2015. At May 31, 2016, there were 5,200,000 stock options (May 31, 2015: 5,200,000) outstanding and exercisable with an exercise price at $0.25 each expiring on February 3, 2019, with an aggregate intrinsic value of $nil (May 31, 2015: $nil) and a weighted average remaining contractual term of 2.68 years (May 31, 2015: 3.68 years). c) Share Purchase Warrants At May 31, 2016, there were 24,570,000 share purchase warrants (May 31, 2015: 24,570,000) outstanding and exercisable with weighted average exercise price at $0.204. Series Number Price Expiry Date "A" 3,817,500 $ 0.50 February 17, 2017 "D" 20,752,500 $ 0.15 February 17, 2017 24,570,000 On February 10, 2015, the Board of Directors of Sterling Group Ventures Inc. ("the Company") approved the extension of 3,817,500 Series "A" Share Purchase Warrants (the "A" Warrants) to the earlier of February 17, 2017 or the close of business on the 30th day after a takeover bid for the Company's issued and outstanding share capital has been made by a third party and approved by the shareholders of the Company. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $11,305 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 183%, risk-free interest rates of 0.25% and expected life of two years, and is included in finance expense in the consolidated statement of operations. The Board of Directors of the Company also approved the extension of the 20,752,500 Series "D" Share Purchase Warrants (the "D" Warrants) to the earlier of February 17, 2017 or the close of business on the 30th day after a takeover bid for the Company's issued and outstanding share capital has been made by a third party and approved by the shareholders of the Company. The exercise price of the "D" Warrants remains unchanged at $0.15 per share. The Series "D" Share Purchase Warrants were originally issued pursuant to a private placement commencing in December 2010. The additional fair value of the 20,752,500 extended life Series “D” Share Purchase Warrants was estimated at $95,701 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 183%, risk-free interest rates of 0.25% and expected life of two years, and is included in Finance expense. |
Foreign Currency Risk
Foreign Currency Risk | 12 Months Ended |
May 31, 2016 | |
Foreign Currency Risk [Text Block] | Note 7 Foreign Currency Risk The Company is exposed to fluctuations in foreign currencies through amounts held in China in RMB: Cash and cash equivalents $30,615 (May 31, 2015 - $465,187). The Company is exposed to fluctuations in foreign currencies through amounts held in Canada in CAD: Cash $15,595 (May 31, 2015 - $3,076). The Company is exposed to fluctuations in foreign currencies through amounts held in Hong Kong in HKD: Cash $76 (May 31, 2015 - $110). |
Segment Information
Segment Information | 12 Months Ended |
May 31, 2016 | |
Segment Information [Text Block] | Note 8 Segment Information The Company operates in one segment and two geographic locations, Canada and China, with operations in the mineral resources sector. The Company’s assets are allocated to each country as follows: May 31, 2016 May 31, 2015 Canada China Total Canada China Total Cash and cash equivalents $ 132,382 $ 774,776 $ 907,158 $ 174,003 $ 1,259,106 $ 1,433,109 Prepaid expense, GST receivable and other receivable 6,438 6,182 12,620 5,638 7,124 12,762 Advance to third party - - - - - - Equipment 154 71,268 71,422 286 108,023 108,309 Environmental deposit - 1 1 - 127,393 127,393 Mineral properties - 1 1 - 3,148,740 3,148,740 $ 138,974 $ 852,228 $ 991,202 $ 179,927 $ 4,650,386 $ 4,830,313 |
Deferred Tax Assets
Deferred Tax Assets | 12 Months Ended |
May 31, 2016 | |
Deferred Tax Assets [Text Block] | Note 9 Deferred Tax Assets The Company's income tax expense/(recovery) for the years ended May 31, 2016 and 2015 differs from the statutory rates as follows: 2016 2015 Statutory tax rate 35% 35% Loss before income taxes $ (3,091,745 ) $ (370,332 ) Statutory rate applied to loss before income taxes (1,082,100 ) (129,600 ) Foreign income taxed at other than US statutory rates 282,200 3,600 Permanent difference - 52,500 Change in valuation allowance 67,213 73,500 Income tax expense/(recovery) $ (732,687 ) $ - The significant components of the Company’s deferred tax assets and liabilities are approximately as follows: 2016 2015 Deferred tax assets Equipment $ 33,500 $ 26,400 Stock based compensation 1,096,800 1,096,800 Mineral property 54,500 - Net operating losses 966,200 961,600 Deferred tax assets 2,151,000 2,084,800 Valuation allowance (2,151,000 ) (2,084,800 ) Net deferred tax asset - - Deferred tax liabilities: Mineral property - (732,687 ) Net deferred tax liability $ - $ (732,687 ) At May 31, 2016, the Company has incurred accumulated net operating losses approximately $2,845,000 (2015: $3,016,000) which are available to reduce taxable income in future taxation years. If not utilized to reduce future taxable income, the Company's net operating loss carryforwards will start to expire in 2024. The amount taken into income as deferred tax assets must reflect that portion of the income tax loss carryforwards that is more likely-than-not to be realized from future operations. The Company has chosen to provide an allowance of 100% against all available income tax loss carryforwards, regardless of their time of expiry. The Company operates in foreign jurisdictions and is subject to audit by taxing authorities. These audits may result in the assessment of amounts different than the amounts recorded in the consolidated financial statements. The Company liaises with the relevant authorities in these jurisdictions in regard to its income tax and other returns. Management believes the Company has adequately provided for any taxes, penalties and interest that may fall due. |
Purchase and Sale Agreement
Purchase and Sale Agreement | 12 Months Ended |
May 31, 2016 | |
Purchase and Sale Agreement [Text Block] | Note 10 Purchase and Sale Agreement On April 9, 2016, the Company signed a Purchase and Sale Agreement ("Agreement") with Chenguo Capital Limited ("Chenguo"). As a result of the transaction, the Company had plans to diversify and become a timeshare exchange provider, a manager of timeshare assets through agreements, and a developer of timeshare assets with fee relationships with other organizations or resorts. Under the terms of the Agreement, the Company issued 85,000,000 shares on April 19, 2016 to Chenguo. Pursuant to an escrow agreement, the 85,000,000 shares are contingently issuable and only released from escrow upon the completion of the transaction and when the timeshare assets are transferred to the Company. In connection with this agreement, the Company also issued 8,000,000 shares, pursuant to an escrow agreement representing a finder's fee to be released on completion of the transaction. The Company also remitted RMB1,895,353 ($295,726) to the other party on April 22, 2016 for the development of the timeshare platform. On September 5, 2016, both parties agreed to terminate the Agreement and the Company agreed to reimburse the parties to the Agreement HK$125,000 ($16,090) on the related expenses incurred. Pursuant to the termination agreement, on September 9, 2016 the Company cancelled the 85,000,000 shares and 8,000,000 shares issued as finder's fees, subject to the escrow agreement. The Company also expensed in project development cost $295,726 funds advanced for the development of timeshare platform and recorded $16,090 and an additional $7,750 for expenses incurred by other parties affiliated with the Chenguo termination in due diligence cost in the consolidated statement of operations. The Company has determined there is a contingent liability related to the cancellation of the 8,000,000 shares related to the finder's fee. Based on the early stage of the claim and evaluation of the facts available at this time, the amount or range of reasonably possible losses to which the Company is exposed cannot be estimated and the ultimate resolution of this matter and the associated financial impact to the Company, if any, remains uncertain at this time. We believe the claim is without merit and intend to defend ourselves vigorously. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2016 | |
Principles of Consolidation [Policy Text Block] | Principles of Consolidation The following subsidiaries were incorporated under the laws of the Territory of the British Virgin Islands on the following dates: Micro Express Holdings Inc. was incorporated on February 25, 2004; Micro Express Ltd. was incorporated on July 27, 1994; Huyana Ventures Limited was incorporated on August 18, 2004; Makaelo Holdings Inc. was incorporated on March 21, 2005, and Makaelo Limited was incorporated on February 14, 2005. Silver Castle Investments Ltd. and Sterling Group Ventures (HK) Limited (formerly Euro Asia Premier Real Estate (HK) Limited) were incorporated in Hong Kong on October 13, 2010, and on October 15, 2014 respectively, and Chenxi County Hongyu Mining Co. Ltd. was incorporated in China on July 4, 2006. These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Micro Express Holdings Inc., Micro Express Ltd., Huyana Ventures Limited, Makaelo Holdings Inc., Makaelo Limited, Sterling Group Ventures (HK) Limited ("Sterling HK"), Silver Castle Investments Ltd. (“Silver Castle”) and its 100% controlled subsidiary, Chenxi County Hongyu Mining Co. Ltd. ("Hongyu"). All inter-company transactions and account balances have been eliminated. |
Mineral Properties [Policy Text Block] | Mineral Properties Costs of acquiring mineral properties are capitalized by the project area (Note 3). Costs to maintain mineral rights and leases are expensed as incurred. When a property reaches the production state, the related capitalized costs are amortized using the unit of production method on the basis of annual estimates of ore reserves. Management reviews the carrying value of mineral properties at least annually and will recognize impairment in value based upon current exploration results, and any impairment or subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. Mineral property exploration costs are expensed as incurred. Exploration activities conducted jointly with others are reflected at the Company’s proportionate interest in such activities. As at May 31, 2016 and 2015, the Company did not have proven or probable ore reserves. |
Impairment of Long-lived Assets [Policy Text Block] | Impairment of Long-lived Assets In accordance with ASC Topic 360-10, “Property, Plant and Equipment - Overall”, the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. |
Asset Retirement Obligations [Policy Text Block] | Asset Retirement Obligations The Company recognizes the fair value of a liability for an asset retirement obligation in the year in which it is incurred when a reasonable estimate of fair value can be made. The carrying amount of the related long-lived asset is increased by the same amount as the liability. Changes in the liability for an asset retirement obligation due to the passage of time will be measured by applying an interest method of allocation. The amount will be recognized as an increase in the liability and an accretion expense in the statement of operations. Changes resulting from revisions to the timing or the amount of the original estimate of undiscounted cash flows are recognized as an increase or a decrease in the carrying amount of the liability for an asset retirement obligation and the related asset retirement cost capitalized as part of the carrying amount of the related long-lived asset. No asset retirement obligation was required to be recognized at May 31, 2016 and 2015. |
Property and Equipment [Policy Text Block] | Property and Equipment Property and equipment is stated at cost. Depreciation is primarily computed using the straight-line method, by charges to operations in amounts estimated to allocate the cost of the assets over their estimated useful lives, as follows: Asset classification Estimated useful life Computer equipment 3 years Automobile 5 years Office equipment 3 years Machinery 3 to 10 years |
Income Taxes [Policy Text Block] | Income Taxes The Company accounts for income taxes under the provisions of ASC Topic 740, “Income Taxes” ASC Topic 740 contains a two-step approach to recognizing and measuring uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company recognizes interest and penalties accrued on unrecognized tax benefits within general and administrative expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction in general and administrative expenses in the period that such determination is made. The tax returns for fiscal 2012 through 2016 are subject to audit or review by the US tax authority, whereas fiscal 2008 through 2016 are subject to audit or review by the Canadian tax authority. |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and judgement by management include: useful lives of long-lived assets, impairment considerations and recoverable analysis on our mineral properties and environmental deposit, deferred taxes and ability to continue as a going concern. While the Company believes that the estimates and assumptions used in the preparation of the consolidation financial statements are appropriate, actual results could differ from those estimates. |
Fair Value of Financial Instruments [Policy Text Block] | Fair Value of Financial Instruments The Company applies the provisions of ASC 820, “Fair Value Measurements and Disclosures". ASC 820 defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level I, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company did not have any assets or liabilities stated at fair value utilizing Level 1, Level 2 or Level 3 inputs as at May 31, 2016 or 2015. The Company’s consolidated financial instruments consist of cash, other receivables and accounts payable and accrued liabilities. The carrying values of the Company’s financial instruments approximate fair value due to the short maturity of these instruments. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these consolidated financial instruments. |
Loss per Share [Policy Text Block] | Loss per Share The Company reports basic and diluted loss per share in accordance with the ASC Topic 260-10, “Earnings Per Share - Overall”. Basic loss per share is computed using the weighted average number of shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. In addition, in computing the dilutive effect of convertible securities, the numerator is adjusted to add back any convertible preferred dividend and the after-tax amount of interest in the period associated with any convertible debt. The numerator is also adjusted for any other changes in income or loss that would result from the assumed conversion of these potential common shares. Common share equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company’s net loss position at the calculation date. At May 31, 2016, the Company had 29,770,000 (2015 - 29,770,000) common share equivalents in respect to options and warrants. Because the Company incurred a loss, the dilutive impact of the outstanding options and warrants have been excluded as the impact would be anti-dilutive. |
Concentration of Credit Risk [Policy Text Block] | Concentration of Credit Risk The Company places its cash and cash equivalents with high credit quality financial institutions in Canada, Hong Kong and China. As of May 31, 2016, the Company’s maximum exposure to credit risk is the carrying value of the Company’s cash, and other receivables. The market in China is monitored by the central government, which could impose taxes or restrictions at any time which would make operations unprofitable and infeasible and cause a write- off of investment in the mineral properties. Other factors include political policy on foreign ownership, political policy to open the doors to foreign investors, and political policy on mineral claims and metal prices. |
Comprehensive Loss [Policy Text Block] | Comprehensive Loss The Company reports comprehensive income (loss) in accordance with ASC Topic 220-10, “Comprehensive Income - Overall”. Comprehensive loss is comprised of foreign currency translation adjustments. |
Foreign Currency Translation [Policy Text Block] | Foreign Currency Translation Foreign currency transactions are translated into US dollars, the functional and reporting currency of the Company, by the use of the exchange rate in effect at the date of the transaction, in accordance with ASC Topic 830-20, “Foreign Currency Matters - Foreign Currency Translation”. Assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the period end and capital accounts are translated at historical rates. Income statement accounts are translated at the average rates of exchange prevailing during the period which approximates the exchange rate in effect at the date of the transaction. Translation adjustments from the use of different exchange rates from period to period are included in the Comprehensive Income account in Stockholders’ Equity, if applicable. Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses are included in the Statement of Operations. |
Stock-based Compensation [Policy Text Block] | Stock-based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718-10, Compensation - Stock Compensation – Overall The Company has elected to use the Black-Scholes option pricing model to determine the fair value of the options and the extension of the expiry dates of share purchase warrants previously granted. |
Recent Accounting Pronouncements [Policy Text Block] | Recent Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” which changes the presentation of debt issuance costs in the financial statements. Under the ASU, an entity should present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. This new guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015; early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods. The Company is currently evaluating the potential impact of adoption of this guidance on its consolidated financial statements. In August, 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern,” which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the potential impact of adoption of this guidance on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU No. 2015-17”). The guidance eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent amounts in a classified balance sheet. The new standard requires deferred tax assets and liabilities to be classified as noncurrent. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period and may be applied either prospectively or retrospectively to all periods presented. The Company is currently evaluating the potential impact of adoption of this guidance on its consolidated financial statements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ASU No. 2016-02”). The guidance requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The ASU also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. For public companies, the standard will take effect for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2018 with earlier application permitted. The Company is still evaluating the impact of ASU No. 2016-02 on its consolidated financial position and results of operations. In June 2014, the FASB issued Accounting Standard Update (ASU) 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Allow a Performance Target to Be Achieved After the Requisite Service Period,” which requires that a performance target that could be achieved after the requisite service period be treated as a performance condition that affects the vesting of the award. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (i) prospectively to all awards granted or modified after the effective date; or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2016 | |
Property and Equipment Useful Life [Table Text Block] | Asset classification Estimated useful life Computer equipment 3 years Automobile 5 years Office equipment 3 years Machinery 3 to 10 years |
Mineral Properties (Tables)
Mineral Properties (Tables) | 12 Months Ended |
May 31, 2016 | |
Summary of Mineral Property Expenditures [Table Text Block] | Gaoping Phosphate Summary of mineral property expenditures Property Balance, May 31, 2014 $ 921,163 Administrative 17,682 Consulting fees 28,307 Engineering 2,181 Mining permit 12,925 Travel & promotion 32,857 Wages and benefits 59,586 Balance, May 31, 2015 $ 1,074,701 Administrative 3,362 Consulting fees 16,323 Mining permit 10,922 Travel & promotion 13,092 Wages and benefits 58,075 Balance, May 31, 2016 $ 1,176,475 |
Equipment (Tables)
Equipment (Tables) | 12 Months Ended |
May 31, 2016 | |
Property, Plant and Equipment [Table Text Block] | May 31, 2016 May 31, 2015 Accumulated Net Book Accumulated Net Book Cost Depreciation Value Cost Depreciation Value Computer equipment $ 14,742 $ 14,073 $ 669 $ 14,126 $ 13,809 $ 317 Automobile 56,738 47,962 8,776 60,256 38,801 21,455 Office equipment 3,381 3,381 - 3,590 3,590 - Machinery 155,012 93,035 61,977 164,625 78,088 86,537 $ 229,873 $ 158,451 $ 71,422 $ 242,597 $ 134,288 $ 108,309 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
May 31, 2016 | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Series Number Price Expiry Date "A" 3,817,500 $ 0.50 February 17, 2017 "D" 20,752,500 $ 0.15 February 17, 2017 24,570,000 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
May 31, 2016 | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | May 31, 2016 May 31, 2015 Canada China Total Canada China Total Cash and cash equivalents $ 132,382 $ 774,776 $ 907,158 $ 174,003 $ 1,259,106 $ 1,433,109 Prepaid expense, GST receivable and other receivable 6,438 6,182 12,620 5,638 7,124 12,762 Advance to third party - - - - - - Equipment 154 71,268 71,422 286 108,023 108,309 Environmental deposit - 1 1 - 127,393 127,393 Mineral properties - 1 1 - 3,148,740 3,148,740 $ 138,974 $ 852,228 $ 991,202 $ 179,927 $ 4,650,386 $ 4,830,313 |
Deferred Tax Assets (Tables)
Deferred Tax Assets (Tables) | 12 Months Ended |
May 31, 2016 | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2016 2015 Statutory tax rate 35% 35% Loss before income taxes $ (3,091,745 ) $ (370,332 ) Statutory rate applied to loss before income taxes (1,082,100 ) (129,600 ) Foreign income taxed at other than US statutory rates 282,200 3,600 Permanent difference - 52,500 Change in valuation allowance 67,213 73,500 Income tax expense/(recovery) $ (732,687 ) $ - |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2016 2015 Deferred tax assets Equipment $ 33,500 $ 26,400 Stock based compensation 1,096,800 1,096,800 Mineral property 54,500 - Net operating losses 966,200 961,600 Deferred tax assets 2,151,000 2,084,800 Valuation allowance (2,151,000 ) (2,084,800 ) Net deferred tax asset - - Deferred tax liabilities: Mineral property - (732,687 ) Net deferred tax liability $ - $ (732,687 ) |
Nature of Operations and Abil24
Nature of Operations and Ability to Continue as a Going Concern (Narrative) (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Nature Of Operations And Ability To Continue As A Going Concern 1 | $ 3,091,745 |
Nature Of Operations And Ability To Continue As A Going Concern 2 | $ 10,321,662 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended |
May 31, 2016mo | |
Summary Of Significant Accounting Policies 1 | 100.00% |
Summary Of Significant Accounting Policies 2 | 50.00% |
Summary Of Significant Accounting Policies 3 | 29,770,000 |
Summary Of Significant Accounting Policies 4 | 29,770,000 |
Summary Of Significant Accounting Policies 5 | 12 |
Mineral Properties (Narrative)
Mineral Properties (Narrative) (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Mineral Properties 1 | $ 101,774 |
Mineral Properties 2 | 153,538 |
Mineral Properties 3 | 1,176,475 |
Mineral Properties 4 | 1,074,701 |
Mineral Properties 5 | 3,147,801 |
Mineral Properties 6 | $ 123,204 |
Equipment (Narrative) (Details)
Equipment (Narrative) (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Equipment 1 | $ 32,138 |
Equipment 2 | $ 44,777 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Related Party Transactions 1 | $ 18,019 |
Related Party Transactions 2 | 20,728 |
Related Party Transactions 3 | 397,181 |
Related Party Transactions 4 | $ 415,150 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) | 12 Months Ended |
May 31, 2016USD ($)yr$ / sharesshares | |
Capital Stock 1 | shares | 93,000,000 |
Capital Stock 2 | shares | 5,200,000 |
Capital Stock 3 | 5,200,000 |
Capital Stock 4 | $ 0.25 |
Capital Stock 5 | 0 |
Capital Stock 6 | $ 0 |
Capital Stock 7 | yr | 2.68 |
Capital Stock 8 | yr | 3.68 |
Capital Stock 9 | 24,570,000 |
Capital Stock 10 | 24,570,000 |
Capital Stock 11 | $ 0.204 |
Capital Stock 12 | 3,817,500 |
Capital Stock 13 | 3,817,500 |
Capital Stock 14 | $ 11,305 |
Capital Stock 15 | 0.00% |
Capital Stock 16 | 183.00% |
Capital Stock 17 | 0.25% |
Capital Stock 18 | 20,752,500 |
Capital Stock 19 | $ / shares | $ 0.15 |
Capital Stock 20 | 20,752,500 |
Capital Stock 21 | $ 95,701 |
Capital Stock 22 | 0.00% |
Capital Stock 23 | 183.00% |
Capital Stock 24 | 0.25% |
Foreign Currency Risk (Narrativ
Foreign Currency Risk (Narrative) (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Foreign Currency Risk 1 | $ 30,615 |
Foreign Currency Risk 2 | 465,187 |
Foreign Currency Risk 3 | 15,595 |
Foreign Currency Risk 4 | 3,076 |
Foreign Currency Risk 5 | 76 |
Foreign Currency Risk 6 | $ 110 |
Deferred Tax Assets (Narrative)
Deferred Tax Assets (Narrative) (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Deferred Tax Assets 1 | $ 2,845,000 |
Deferred Tax Assets 2 | $ 3,016,000 |
Deferred Tax Assets 3 | 100.00% |
Purchase and Sale Agreement (Na
Purchase and Sale Agreement (Narrative) (Details) | 12 Months Ended | |
May 31, 2016USD ($)shares | May 31, 2016CNY (¥)shares | |
Purchase And Sale Agreement 1 | shares | 85,000,000 | 85,000,000 |
Purchase And Sale Agreement 2 | shares | 85,000,000 | 85,000,000 |
Purchase And Sale Agreement 3 | shares | 8,000,000 | 8,000,000 |
Purchase And Sale Agreement 4 | ¥ | ¥ 1,895,353 | |
Purchase And Sale Agreement 5 | $ | $ 295,726 | |
Purchase And Sale Agreement 6 | $ | 125,000 | |
Purchase And Sale Agreement 7 | $ | $ 16,090 | |
Purchase And Sale Agreement 8 | shares | 85,000,000 | 85,000,000 |
Purchase And Sale Agreement 9 | shares | 8,000,000 | 8,000,000 |
Purchase And Sale Agreement 10 | $ | $ 295,726 | |
Purchase And Sale Agreement 11 | $ | 16,090 | |
Purchase And Sale Agreement 12 | $ | $ 7,750 | |
Purchase And Sale Agreement 13 | shares | 8,000,000 | 8,000,000 |
Property and Equipment Useful L
Property and Equipment Useful Life (Details) | 12 Months Ended |
May 31, 2016yr | |
Summary Of Significant Accounting Policies Property And Equipment Useful Life 1 | 3 |
Summary Of Significant Accounting Policies Property And Equipment Useful Life 2 | 5 |
Summary Of Significant Accounting Policies Property And Equipment Useful Life 3 | 3 |
Summary Of Significant Accounting Policies Property And Equipment Useful Life 4 | 3 |
Summary Of Significant Accounting Policies Property And Equipment Useful Life 5 | 10 |
Summary of Mineral Property Exp
Summary of Mineral Property Expenditures (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Mineral Properties Summary Of Mineral Property Expenditures 1 | $ 921,163 |
Mineral Properties Summary Of Mineral Property Expenditures 2 | 17,682 |
Mineral Properties Summary Of Mineral Property Expenditures 3 | 28,307 |
Mineral Properties Summary Of Mineral Property Expenditures 4 | 2,181 |
Mineral Properties Summary Of Mineral Property Expenditures 5 | 12,925 |
Mineral Properties Summary Of Mineral Property Expenditures 6 | 32,857 |
Mineral Properties Summary Of Mineral Property Expenditures 7 | 59,586 |
Mineral Properties Summary Of Mineral Property Expenditures 8 | 1,074,701 |
Mineral Properties Summary Of Mineral Property Expenditures 9 | 3,362 |
Mineral Properties Summary Of Mineral Property Expenditures 10 | 16,323 |
Mineral Properties Summary Of Mineral Property Expenditures 11 | 10,922 |
Mineral Properties Summary Of Mineral Property Expenditures 12 | 13,092 |
Mineral Properties Summary Of Mineral Property Expenditures 13 | 58,075 |
Mineral Properties Summary Of Mineral Property Expenditures 14 | $ 1,176,475 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Equipment Property, Plant And Equipment 1 | $ 14,742 |
Equipment Property, Plant And Equipment 2 | 14,073 |
Equipment Property, Plant And Equipment 3 | 669 |
Equipment Property, Plant And Equipment 4 | 14,126 |
Equipment Property, Plant And Equipment 5 | 13,809 |
Equipment Property, Plant And Equipment 6 | 317 |
Equipment Property, Plant And Equipment 7 | 56,738 |
Equipment Property, Plant And Equipment 8 | 47,962 |
Equipment Property, Plant And Equipment 9 | 8,776 |
Equipment Property, Plant And Equipment 10 | 60,256 |
Equipment Property, Plant And Equipment 11 | 38,801 |
Equipment Property, Plant And Equipment 12 | 21,455 |
Equipment Property, Plant And Equipment 13 | 3,381 |
Equipment Property, Plant And Equipment 14 | 3,381 |
Equipment Property, Plant And Equipment 15 | 0 |
Equipment Property, Plant And Equipment 16 | 3,590 |
Equipment Property, Plant And Equipment 17 | 3,590 |
Equipment Property, Plant And Equipment 18 | 0 |
Equipment Property, Plant And Equipment 19 | 155,012 |
Equipment Property, Plant And Equipment 20 | 93,035 |
Equipment Property, Plant And Equipment 21 | 61,977 |
Equipment Property, Plant And Equipment 22 | 164,625 |
Equipment Property, Plant And Equipment 23 | 78,088 |
Equipment Property, Plant And Equipment 24 | 86,537 |
Equipment Property, Plant And Equipment 25 | 229,873 |
Equipment Property, Plant And Equipment 26 | 158,451 |
Equipment Property, Plant And Equipment 27 | 71,422 |
Equipment Property, Plant And Equipment 28 | 242,597 |
Equipment Property, Plant And Equipment 29 | 134,288 |
Equipment Property, Plant And Equipment 30 | $ 108,309 |
Schedule of Stockholders' Equit
Schedule of Stockholders' Equity Note, Warrants or Rights (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights 1 | $ 3,817,500 |
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights 2 | 0.50 |
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights 3 | $ 20,752,500 |
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights 4 | 0.15 |
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights 5 | $ 24,570,000 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information, by Segment (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Segment Information Schedule Of Segment Reporting Information, By Segment 1 | $ 132,382 |
Segment Information Schedule Of Segment Reporting Information, By Segment 2 | 774,776 |
Segment Information Schedule Of Segment Reporting Information, By Segment 3 | 907,158 |
Segment Information Schedule Of Segment Reporting Information, By Segment 4 | 174,003 |
Segment Information Schedule Of Segment Reporting Information, By Segment 5 | 1,259,106 |
Segment Information Schedule Of Segment Reporting Information, By Segment 6 | 1,433,109 |
Segment Information Schedule Of Segment Reporting Information, By Segment 7 | 6,438 |
Segment Information Schedule Of Segment Reporting Information, By Segment 8 | 6,182 |
Segment Information Schedule Of Segment Reporting Information, By Segment 9 | 12,620 |
Segment Information Schedule Of Segment Reporting Information, By Segment 10 | 5,638 |
Segment Information Schedule Of Segment Reporting Information, By Segment 11 | 7,124 |
Segment Information Schedule Of Segment Reporting Information, By Segment 12 | 12,762 |
Segment Information Schedule Of Segment Reporting Information, By Segment 13 | 0 |
Segment Information Schedule Of Segment Reporting Information, By Segment 14 | 0 |
Segment Information Schedule Of Segment Reporting Information, By Segment 15 | 0 |
Segment Information Schedule Of Segment Reporting Information, By Segment 16 | 0 |
Segment Information Schedule Of Segment Reporting Information, By Segment 17 | 0 |
Segment Information Schedule Of Segment Reporting Information, By Segment 18 | 0 |
Segment Information Schedule Of Segment Reporting Information, By Segment 19 | 154 |
Segment Information Schedule Of Segment Reporting Information, By Segment 20 | 71,268 |
Segment Information Schedule Of Segment Reporting Information, By Segment 21 | 71,422 |
Segment Information Schedule Of Segment Reporting Information, By Segment 22 | 286 |
Segment Information Schedule Of Segment Reporting Information, By Segment 23 | 108,023 |
Segment Information Schedule Of Segment Reporting Information, By Segment 24 | 108,309 |
Segment Information Schedule Of Segment Reporting Information, By Segment 25 | 0 |
Segment Information Schedule Of Segment Reporting Information, By Segment 26 | 1 |
Segment Information Schedule Of Segment Reporting Information, By Segment 27 | 1 |
Segment Information Schedule Of Segment Reporting Information, By Segment 28 | 0 |
Segment Information Schedule Of Segment Reporting Information, By Segment 29 | 127,393 |
Segment Information Schedule Of Segment Reporting Information, By Segment 30 | 127,393 |
Segment Information Schedule Of Segment Reporting Information, By Segment 31 | 0 |
Segment Information Schedule Of Segment Reporting Information, By Segment 32 | 1 |
Segment Information Schedule Of Segment Reporting Information, By Segment 33 | 1 |
Segment Information Schedule Of Segment Reporting Information, By Segment 34 | 0 |
Segment Information Schedule Of Segment Reporting Information, By Segment 35 | 3,148,740 |
Segment Information Schedule Of Segment Reporting Information, By Segment 36 | 3,148,740 |
Segment Information Schedule Of Segment Reporting Information, By Segment 37 | 138,974 |
Segment Information Schedule Of Segment Reporting Information, By Segment 38 | 852,228 |
Segment Information Schedule Of Segment Reporting Information, By Segment 39 | 991,202 |
Segment Information Schedule Of Segment Reporting Information, By Segment 40 | 179,927 |
Segment Information Schedule Of Segment Reporting Information, By Segment 41 | 4,650,386 |
Segment Information Schedule Of Segment Reporting Information, By Segment 42 | $ 4,830,313 |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 1 | 35.00% |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 2 | 35.00% |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 3 | $ (3,091,745) |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 4 | (370,332) |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 5 | (1,082,100) |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 6 | (129,600) |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 7 | 282,200 |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 8 | 3,600 |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 9 | 0 |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 10 | 52,500 |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 11 | 67,213 |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 12 | 73,500 |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 13 | (732,687) |
Deferred Tax Assets Schedule Of Components Of Income Tax Expense (benefit) 14 | $ 0 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) | 12 Months Ended |
May 31, 2016USD ($) | |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 1 | $ 33,500 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 2 | 26,400 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 3 | 1,096,800 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 4 | 1,096,800 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 5 | 54,500 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 6 | 0 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 7 | 966,200 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 8 | 961,600 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 9 | 2,151,000 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 10 | 2,084,800 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 11 | (2,151,000) |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 12 | (2,084,800) |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 13 | 0 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 14 | 0 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 15 | 0 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 16 | (732,687) |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 17 | 0 |
Deferred Tax Assets Schedule Of Deferred Tax Assets And Liabilities 18 | $ (732,687) |