Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document Information [Line Items] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | Entree Resources Ltd. |
Entity Central Index Key | 1,271,554 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Smaller Reporting Company |
Trading Symbol | EGI |
Entity Common Stock, Shares Outstanding | 174,372,449 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Gain - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Expenses | ||||
Exploration | $ 26 | $ 109 | $ 96 | $ 178 |
General and administrative | 221 | 660 | 685 | 1,375 |
Restructuring costs | 0 | 0 | 0 | 195 |
Depreciation | 6 | 9 | 12 | 7 |
Other | 11 | (52) | (13) | (52) |
Operating loss | 264 | 726 | 780 | 1,703 |
Unrealized loss on held-for-trading investments | 69 | 0 | 69 | 0 |
Foreign exchange loss (gain) | 88 | (100) | 223 | (57) |
Interest income | (27) | (46) | (52) | (69) |
Interest expense | 76 | 84 | 151 | 142 |
Loss from equity investee | 62 | 55 | 75 | 103 |
Operating loss before income taxes | 532 | 719 | 1,246 | 1,822 |
Income tax recovery | 0 | (72) | 0 | (72) |
Net loss from continuing operations | 532 | 647 | 1,246 | 1,750 |
Gain on sale of asset | (370) | 0 | (370) | 0 |
Net loss from discontinued operations | 0 | 23 | 0 | 176 |
Net loss | 162 | 670 | 876 | 1,926 |
Foreign currency translation adjustment | (505) | 1,708 | (1,212) | 1,612 |
Net loss and comprehensive (gain) loss | $ (343) | $ 2,378 | $ (336) | $ 3,538 |
Net loss per common share | ||||
Basic and fully diluted - continuing operations | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Basic and fully diluted - discontinued operations | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average shares outstanding | ||||
Basic and fully diluted (000's) | 174,310 | 172,865 | 174,185 | 171,102 |
Total shares issued and outstanding (000's) | 174,372 | 172,903 | 174,372 | 172,903 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 6,226 | $ 7,068 |
Investments | 903 | 0 |
Receivables | 254 | 263 |
Prepaid expenses | 77 | 119 |
Total Current assets | 7,460 | 7,450 |
Property, plant and equipment | 98 | 112 |
Mineral property interests | 0 | 532 |
Long-term investment | 84 | 151 |
Reclamation deposits and other | 12 | 12 |
Total assets | 7,654 | 8,257 |
Current liabilities | ||
Accounts payable and accrued liabilities | 157 | 192 |
Total current liabilities | 157 | 192 |
Other deferred liabilities | 55 | 55 |
Loan payable to Oyu Tolgoi LLC | 8,002 | 7,841 |
Deferred revenue | 23,440 | 24,658 |
Total liabilities | 31,654 | 32,746 |
Stockholders' deficiency | ||
Common stock, no par value, unlimited number authorized, 174,372,449 (December 31, 2017 – 173,573,572) issued and outstanding | 140,209 | 139,689 |
Additional paid-in capital | 21,808 | 22,175 |
Accumulated other comprehensive income | 6,442 | 5,230 |
Accumulated deficit | (192,459) | (191,583) |
Total stockholders' deficiency | (24,000) | (24,489) |
Total liabilities and stockholders' deficiency | $ 7,654 | $ 8,257 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands, $ / shares in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares, Issued | 174,372,449 | 173,573,572 |
Common Stock, Shares, Outstanding | 174,372,449 | 173,573,572 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands | Total | Share capital | Additional paid in capital | Other comprehensive income (loss) | Deficit |
Balance at Dec. 31, 2016 | $ 19,489 | $ 179,299 | $ 20,863 | $ (7,061) | $ (173,612) |
Balance (in shares) at Dec. 31, 2016 | 153,045 | ||||
Net loss for the period | (1,926) | $ 0 | 0 | 0 | (1,926) |
Foreign currency translation | (1,612) | 0 | 0 | (1,612) | 0 |
Stock-based compensation | 188 | 0 | 188 | 0 | 0 |
Transfer of net assets to Mason | (44,214) | (44,214) | 0 | 14,772 | (14,772) |
Issuance of share capital – inducement bonus shares | 37 | $ 37 | 0 | 0 | 0 |
Issuance of share capital – inducement bonus shares(in shares) | 100 | ||||
Issuance of share capital - private placement | 5,048 | $ 3,919 | 1,129 | 0 | 0 |
Issuance of share capital - private placement (in shares) | 18,529 | ||||
Issuance of share capital - stock options | 40 | $ 383 | (343) | 0 | 0 |
Issuance of share capital - stock options (in shares) | 1,229 | ||||
Balance at Jun. 30, 2017 | (22,950) | $ 139,424 | 21,837 | 6,099 | (190,310) |
Balance (in shares) at Jun. 30, 2017 | 172,903 | ||||
Balance at Dec. 31, 2017 | (24,489) | $ 139,689 | 22,175 | 5,230 | (191,583) |
Balance (in shares) at Dec. 31, 2017 | 173,574 | ||||
Net loss for the period | (876) | $ 0 | 0 | 0 | (876) |
Foreign currency translation | 1,212 | 0 | 0 | 1,212 | 0 |
Stock-based compensation | 23 | 0 | 23 | 0 | 0 |
Issuance of share capital - stock options | 130 | $ 520 | (390) | 0 | 0 |
Issuance of share capital - stock options (in shares) | 799 | ||||
Balance at Jun. 30, 2018 | $ (24,000) | $ 140,209 | $ 21,808 | $ 6,442 | $ (192,459) |
Balance (in shares) at Jun. 30, 2018 | 174,373 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Cash flows from operating activities | ||
Net loss | $ (876) | $ (1,926) |
Items not affecting cash: | ||
Depreciation | 12 | 7 |
Stock-based compensation | 23 | 235 |
Loss from equity investee | 75 | 103 |
Interest expense | 151 | 142 |
Gain on sale of asset | (370) | 0 |
Unrealized loss on held-for-trading investments | 69 | 0 |
Unrealized foreign exchange losses (gains) | 161 | (804) |
Other | 0 | 11 |
Cash flows used in operating activities before change in non-cash operating working capital | (755) | (2,232) |
Change in non-cash operating working capital: | ||
Decrease (increase) in receivables and prepaid expenses | 50 | (442) |
(Decrease) increase in accounts payable and accruals | (37) | 252 |
Increase in other assets | 0 | (10) |
Discontinued operations | 0 | 475 |
Net Cash Used In Operating Activities | (742) | (1,957) |
Cash flows from investing activities | ||
Purchase of equipment | (3) | (94) |
Net cash outflow on sale of asset | (103) | 0 |
Cash paid in connection with the Arrangement | 0 | (8,843) |
Net Cash Used In Investing Activities | (106) | (8,937) |
Cash flows from financing activities | ||
Proceeds from issuance of capital stock – private placement | 0 | 5,038 |
Proceeds from issuance of capital stock – stock options | 130 | 39 |
Net Cash Provided By Financing Activities | 130 | 5,077 |
Decrease in cash and cash equivalents | (718) | (5,817) |
Cash and cash equivalents - beginning of period | 7,068 | 13,391 |
Effect of exchange rate changes on cash | (124) | 192 |
Cash and cash equivalents - end of period | $ 6,226 | $ 7,766 |
Nature and continuance of opera
Nature and continuance of operations | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | 1 Nature and continuance of operations Entrée Resources Ltd. was incorporated under the laws of the Province of British Columbia on July 19, 1995 and continued under the laws of the Yukon Territory on January 22, 2003. On May 27, 2005, the Company changed its governing jurisdiction from the Yukon Territory to British Columbia by continuing into British Columbia under the Business Corporations Act (British Columbia) (the "BCBCA"). On May 9, 2017, the Company changed its name from Entrée Gold Inc. to Entrée Resources Ltd. The principal business activity of Entrée Resources Ltd., together with its subsidiaries (collectively referred to as the "Company" or "Entrée"), is the exploration and development of mineral property interests. To date, the Company has not generated significant revenues from its operations and is considered to be in the development stage. All amounts are expressed in United States dollars, except for certain amounts denoted in Canadian dollars ("C$"). These interim consolidated financial statements have been prepared on the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company currently earns no operating revenues. Continued operations of the Company are dependent upon the Company’s ability to secure additional equity capital or receive other financial support, and in the longer term to generate profits from business operations. Management believes that the Company has sufficient working capital to maintain its operations for the next 12 months. |
Plan of arrangement and discont
Plan of arrangement and discontinued operations | 6 Months Ended |
Jun. 30, 2018 | |
Plan of Arrangement and Discontinued Operations [Abstract] | |
Plan of Arrangement and Discontinued Operations [Text Block] | 2 Plan of arrangement and discontinued operations On May 9, 2017, the Company completed a plan of arrangement (the "Arrangement") under Section 288 of the BCBCA pursuant to which Entrée transferred its wholly owned subsidiaries that directly or indirectly hold the Ann Mason Project in Nevada and the Lordsburg property in New Mexico including $8,843,232 in cash and cash equivalents to Mason Resources Corp. ("Mason Resources") in exchange for 77,804,786 common shares of Mason Resources (the "Mason Common Shares"). Mason Resources commenced trading on the Toronto Stock Exchange ("TSX") on May 12, 2017 under the symbol "MNR" and on the OTCQB Venture Market on November 9, 2017 under the symbol "MSSNF". As part of the Arrangement, Entrée then distributed its 77,805,786 Mason Common Shares to Entrée shareholders by way of a share exchange, pursuant to which each existing share of Entrée was exchanged for one "new" share of Entrée and 0.45 of a Mason Common Share. Optionholders and warrantholders of Entrée received replacement options and warrants of Entrée and options and warrants of Mason Resources which were proportionate to, and reflective of the terms of, their existing options and warrants of Entrée. The assets and liabilities that were transferred to Mason Resources were classified as discontinued operations and classified on the balance sheet as assets / liabilities held for spin-off ("Spin-off"). The discontinued operations include three entities transferred to Mason Resources pursuant to the Arrangement: Mason U.S. Holdings Inc. (formerly Entrée U.S. Holdings Inc.); Mason Resources (US) Inc. (formerly Entrée Gold (US) Inc.); and M.I.M. (U.S.A.) Inc. The Spin-off distribution was accounted for at the carrying amount, without gain or loss, and resulted in a reduction of stockholders’ deficiency of $44.2 million. |
Basis of presentation and funct
Basis of presentation and functional currency translation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 3 Basis of presentation and functional currency translation The interim period financial statements have been prepared by the Company in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). The preparation of financial data is based on accounting principles and practices consistent with those used in the preparation of annual financial statements, and in the opinion of management these financial statements contain all adjustments necessary (consisting of normally recurring adjustments) to present fairly the financial information contained therein. Certain information and footnote disclosure normally included in the financial statements prepared in conformity with US GAAP have been condensed or omitted. These interim period financial statements should be read together with the most recent audited financial statements and the accompanying notes for the year ended December 31, 2017. The results of operations for the six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. The functional currency of Entrée Resources Ltd. is the Canadian dollar. Accordingly, monetary assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the balance sheet date while non-monetary assets and liabilities denominated in a foreign currency are translated at historical rates. Revenue and expense items denominated in a foreign currency are translated at exchange rates prevailing when such items are recognized in the statement of comprehensive loss. Exchange gains or losses arising on translation of foreign currency items are included in the statement of comprehensive gain / loss. The functional currency of Entrée Resources Ltd.’s significant subsidiaries is the United States dollar. Upon translation into Canadian dollars for consolidation, monetary assets and liabilities are translated at the exchange rate in effect at the balance sheet date while non-monetary assets and liabilities are translated at historical rates. Revenue and expense items are translated at exchange rates prevailing when such items are recognized in the statement of comprehensive gain / loss. Exchange gains or losses arising on translation of foreign currency items are included in the statement of comprehensive gain / loss. The Company follows the current rate method of translation with respect to its presentation of these interim consolidated financial statements in the reporting currency, which is the United States dollar. Accordingly, assets and liabilities are translated into United States dollars at the period-end exchange rates while revenue and expenses are translated at the prevailing exchange rates during the period. Related exchange gains and losses are included in a separate component of stockholders’ deficiency as accumulated other comprehensive income (loss). Certain amounts reported in prior periods have been reclassified to conform to the current period’s presentation. |
Significant accounting policies
Significant accounting policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 4 Significant accounting policies These interim consolidated financial statements follow the same significant accounting principles as those outlined in the notes to the audited consolidated financial statements for the year ended December 31, 2017 (the "2017 Notes"). The following provides further elaboration of the existing accounting principles which were outlined in the 2017 Notes. Exploration and development Costs of exploration and costs of carrying and retaining unproven properties are expensed as incurred. Exploration costs are charged to operations in the period incurred until such time as it has been determined that a property has economically recoverable reserves, in which case subsequent exploration costs and the costs incurred to develop a property are capitalized. Exploration costs include value-added taxes incurred in foreign jurisdictions when recoverability of those taxes is uncertain. The Company considers mineral rights to be tangible assets and accordingly, the Company capitalizes certain costs related to the acquisition of mineral rights in the period incurred. Property, plant and equipment Property, plant and equipment are carried at cost (including development and preproduction costs, capitalized interest, other capitalized financing costs and all direct administrative support costs incurred during the construction period, net of cost recoveries and incidental revenues), less accumulated depletion and depreciation including write-downs. Following the construction period, interest, other financing costs and administrative costs are expensed as incurred. On the commencement of commercial production, depletion of each mining property is provided on the units-of-production basis, using estimated proven and probable reserves as the depletion basis. Property, plant and equipment are depreciated, following the commencement of commercial production, over their expected economic lives using either the units-of-production method or the straight-line method (over one to twenty years). Depreciation is recorded on a declining balance basis at rates ranging from 20% to 30% per annum. Capital works in progress are not depreciated until the capital asset has been put into operation. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 5 Investments On June 8, 2018, the Company acquired 478,951 common shares of Anglo Pacific Group PLC ("Anglo Pacific"), a public company listed on the London Stock Exchange and the TSX through the sale of the Cañariaco Project Royalty (Note 8). The common shares have been designated as held-for-trading financial assets and any revaluation gains and losses in fair value are included in the Statement of Comprehensive Gain. The fair value of the common shares is determined based on the closing price at each period end. During the six months ended June 30, 2018, the Company recorded an unrealized loss on the common shares of $0.1 million. |
Property, plant and equipment
Property, plant and equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 6 Property, plant and equipment June 30, 2018 December 31, 2017 Cost Accumulated Net book Cost Accumulated Net book Office equipment $ 54 $ 12 $ 42 $ 55 $ 8 $ 47 Computer equipment 145 128 17 149 130 19 Field equipment 37 33 4 39 33 6 Buildings 44 9 35 45 5 40 $ 280 $ 182 $ 98 $ 288 $ 176 $ 112 |
Long-term investments
Long-term investments | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Investments [Abstract] | |
Investment Holdings [Text Block] | 7 Long-term investments Entrée/Oyu Tolgoi JV Property, Mongolia The Company has a carried 20% participating joint venture interest in a large, prospective land package that includes two of the Oyu Tolgoi porphyry deposits in the South Gobi region of Mongolia (the "Entrée/Oyu Tolgoi JV Property"). The Entrée/Oyu Tolgoi JV Property is comprised of the eastern portion of the Shivee Tolgoi mining licence, which hosts the Hugo North Extension copper-gold deposit, and all of the Javhlant mining licence, which hosts the majority of the Heruga copper-gold-molybdenum deposit. The Shivee Tolgoi and Javhlant mining licences were granted by the Mineral Resources Authority of Mongolia in October 2009. Title to the two licences is held by the Company. The Company is entitled to 20% or 30% of the mineralization extracted from the Entrée/Oyu Tolgoi JV Property, depending on the depth of mineralization. In October 2004, the Company entered into an arm’s-length Equity Participation and Earn-In Agreement (the "Earn-In Agreement") with Turquoise Hill Resources Ltd. ("Turquoise Hill"). Under the Earn-In Agreement, Turquoise Hill agreed to purchase equity securities of the Company, and was granted the right to earn an interest in what is now the Entrée/Oyu Tolgoi JV Property. Most of Turquoise Hill’s rights and obligations under the Earn-In Agreement were subsequently assigned by Turquoise Hill to what was then its wholly-owned subsidiary, Oyu Tolgoi LLC ("OTLLC"). The Government of Mongolia subsequently acquired a 34% interest in OTLLC from Turquoise Hill. On June 30, 2008, OTLLC gave notice that it had completed its earn-in obligations by expending a total of $35 million on exploration of the Entrée/Oyu Tolgoi JV Property. OTLLC earned an 80% interest in all minerals extracted below a sub-surface depth of 560 metres from the Entrée/Oyu Tolgoi JV Property and a 70% interest in all minerals extracted from surface to a depth of 560 metres from the Entrée/Oyu Tolgoi JV Property. In accordance with the Earn-In Agreement, the Company and OTLLC formed a joint venture (the "Entrée/Oyu Tolgoi JV") on terms annexed to the Earn-In Agreement (the "JVA"). The portion of the Shivee Tolgoi mining licence outside of the Entrée/Oyu Tolgoi JV Property, the Shivee West Property, is 100% owned by the Company, but is subject to a right of first refusal by OTLLC. In October 2015, the Company entered into a License Fees Agreement with OTLLC, pursuant to which the parties agreed to negotiate in good faith to amend the JVA to include the Shivee West Property in the definition of Entrée/Oyu Tolgoi JV Property. The parties also agreed that the annual licence fees for the Shivee West Property would be for the account of each joint venture participant in proportion to their respective interests, with OTLLC contributing the Company’s 20% share charging interest at prime plus 2% (Note 9). The conversion of the original Shivee Tolgoi and Javhlant exploration licences into mining licences was a condition precedent to the Investment Agreement (the "Oyu Tolgoi Investment Agreement") between Turquoise Hill, OTLLC, the Government of Mongolia and Rio Tinto International Holdings Limited. The licences are part of the contract area covered by the Oyu Tolgoi Investment Agreement, although the Company is not a party to the Oyu Tolgoi Investment Agreement. The Shivee Tolgoi and Javhlant mining licences were each issued for a 30-year term and have rights of renewal for two further 20-year terms. As of June 30, 2018, the Entrée/Oyu Tolgoi JV had expended approximately $30.1 million to advance the Entrée/Oyu Tolgoi JV Property. Under the terms of the Entrée/Oyu Tolgoi JV, OTLLC contributed on behalf of the Company its required participation amount charging interest at prime plus 2% (Note 9). Investment – Entrée/Oyu Tolgoi JV Property The Company accounts for its interest in the Entrée/Oyu Tolgoi JV as a 20% equity investment. Historically, all Company expenditures related to the interest in the Entrée/Oyu Tolgoi JV have been expensed as incurred through the statement of comprehensive gain / loss or recognized as part of the Company’s share of the loss of the joint venture. The Company’s share of the loss of the joint venture was $0.1 million for the six month period ended June 30, 2018 (2017 - $0.1 million) plus accrued interest expense of $0.2 million for the six-month period ended June 30, 2018 (2017 - $0.1 million). The Entrée/Oyu Tolgoi JV investment carrying value at June 30, 2018 was $0.1 million (December 31, 2017 - $0.2 million) and was recorded in long-term investment. This amount is related to certain prepaid license fees which are capitalized beginning January 1, 2018 in accordance with the Company’s accounting policy relating to exploration and development (Note 4). |
Mineral property interests
Mineral property interests | 6 Months Ended |
Jun. 30, 2018 | |
Mineral Property Interests [Abstract] | |
Mineral Property Interests [Text Block] | 8 Mineral property interests Cañariaco Project Royalty, Peru In August 2015, the Company acquired from Candente Copper Corp. (TSX:DNT) ("Candente") a 0.5% net smelter returns royalty (the "Royalty") on Candente's 100% owned Cañariaco project in Peru for a purchase price of $500,000. On June 8, 2018, the Company sold the Royalty to Anglo Pacific, whereby the Company transferred all the issued and outstanding shares of its subsidiaries that directly or indirectly held the Royalty to Anglo Pacific in return for consideration of $1.0 million, payable by the issuance of 478,951 Anglo Pacific common shares. In addition, Entrée retains the right to a portion of any future royalty income received by Anglo Pacific in relation to the Royalty ("Royalty Pass-Through Payments") as follows: · 20% of any royalty payment received for any calendar quarter up to and including December 31, 2029; · 15% of any royalty payment received for any calendar quarter commencing January 1, 2030 up to and including the quarter ending December 31, 2034; and · 10% of any royalty payment received for any calendar quarter commencing January 1, 2035 up to and including the quarter ending December 31, 2039. In accordance with US GAAP, the Company has attributed a value of $ nil to the Royalty Pass-Through Payment since realization of the proceeds is contingent upon several uncertain future events not wholly within the control of the Company. The Company recognized a gain on the sale of the Royalty of $0.4 million as of June 8, 2018 as outlined below. Consideration received $ 1,000 Mineral property interest cost - Cañariaco Copper Royalty (514 ) Transaction costs (116 ) Gain on sale $ 370 The fair value of the common shares received was determined based on the volume weighted average price for the thirty (30) trading days immediately preceding June 5, 2018 at GBP1.57 ($2.09) per common share. The common shares received have been designated as held-for-trading financial assets (Note 5). Other Properties The Company also has interests in other properties in Mongolia (Shivee West Property) and Australia (Blue Rose joint venture). During fiscal 2014, the Company recorded an impairment against the property in Australia and, as a result, there was $nil recognized as an asset on the balance sheet. |
Loan payable to Oyu Tolgoi LLC
Loan payable to Oyu Tolgoi LLC | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 9 Loan payable to Oyu Tolgoi LLC Under the terms of the Entrée/Oyu Tolgoi JV (Note 7), OTLLC will contribute funds to approved joint venture programs and budgets on the Company’s behalf. Interest on each loan advance shall accrue at an annual rate equal to OTLLC’s actual cost of capital or the prime rate of the Royal Bank of Canada, plus two percent (2%) per annum, whichever is less, as at the date of the advance. The loan will be repayable by the Company monthly from ninety percent (90%) of the Company’s share of available cash flow from the Entrée/Oyu Tolgoi JV. In the absence of available cash flow, the loan will not be repayable. The loan is not expected to be repaid within one year. |
Deferred revenue
Deferred revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue Disclosure [Text Block] | 10 Deferred revenue In February 2013, the Company entered into an equity participation and funding agreement (the "2013 Agreement") with Sandstorm Gold Ltd. ("Sandstorm") whereby Sandstorm provided an upfront deposit (the "Deposit") of $40 million. The Company will use future payments that it receives from its mineral property interests to purchase and deliver metal credits to Sandstorm, in amounts that are indexed to the Company’s share of gold, silver and copper production from the current Entrée/Oyu Tolgoi JV Property. Upon the delivery of metal credits, Sandstorm will also make the cash payment outlined below. In addition, the 2013 Agreement provided for a partial refund of the Deposit and a pro rata reduction in the number of metal credits deliverable to Sandstorm in the event of a partial expropriation of Entrée’s economic interest, contractually or otherwise, in the current Entrée/Oyu Tolgoi JV Property. On February 23, 2016, the Company and Sandstorm entered into an Agreement to Amend, whereby the Company refunded 17% of the Deposit ($6.8 million) (the "Refund") in cash and shares thereby reducing the Deposit to $33.2 million for a 17% reduction in the metal credits that the Company is required to deliver to Sandstorm. At closing on March 1, 2016, the parties entered into an Amended and Restated Equity Participation and Funding Agreement (the "Amended Sandstorm Agreement"). Under the terms of the Amended Sandstorm Agreement, the Company will purchase and deliver gold, silver and copper credits equivalent to: 28.1% of Entrée’s share of gold and silver, and 2.1% of Entrée’s share of copper, produced from the Shivee Tolgoi mining licence (excluding the Shivee West Property); and 21.3% of Entrée’s share of gold and silver, and 2.1% of Entrée’s share of copper, produced from the Javhlant mining licence. Upon the delivery of metal credits, Sandstorm will make a cash payment to the Company equal to the lesser of the prevailing market price and $220 per ounce of gold, $5 per ounce of silver and $0.50 per pound of copper (subject to inflation adjustments). After approximately 8.6 million ounces of gold, 40.3 million ounces of silver and 9.1 billion pounds of copper have been produced from the entire current Entrée/Oyu Tolgoi JV Property the cash payment will be increased to the lesser of the prevailing market price and $500 per ounce of gold, $10 per ounce of silver and $1.10 per pound of copper (subject to inflation adjustments). To the extent that the prevailing market price is greater than the amount of the cash payment, the difference between the two will be credited against the Deposit (the net amount of the Deposit being the "Unearned Balance"). This arrangement does not require the delivery of actual metal, and the Company may use revenue from any of its assets to purchase the requisite amount of metal credits. Under the Amended Sandstorm Agreement, Sandstorm has a right of first refusal, subject to certain exceptions, on future production-based funding agreements. The Amended Sandstorm Agreement also contains other customary terms and conditions, including representations, warranties, covenants and events of default. The initial term of the Amended Sandstorm Agreement is 50 years, subject to successive 10-year extensions at the discretion of Sandstorm. In addition, the Amended Sandstorm Agreement provides that the Company will not be required to make any further refund of the Deposit if Entrée’s economic interest is reduced by up to and including 17%. If there is a reduction of greater than 17% up to and including 34%, the Amended Sandstorm Agreement provides the Company with the ability to refund a corresponding portion of the Deposit in cash or common shares of the Company or any combination of the two at the Company’s election, in which case there would be a further corresponding reduction in deliverable metal credits. If the Company elects to refund Sandstorm with common shares of the Company, the value of each common share shall be equal to the volume weighted average price for the five (5) trading days immediately preceding the 90 th In the event of a full expropriation, the remainder of the Unearned Balance after the foregoing refunds must be returned in cash. For accounting purposes, the Deposit is accounted for as deferred revenue on the balance sheet and the original Deposit was recorded at the historical amount of C$40.0 million. As a result of the Amended Sandstorm Agreement, the deferred revenue amount was adjusted to reflect the $6.8 million Refund which was recorded at the foreign exchange amount at the date of the Refund resulting in a net balance of C$30.9 million. This amount is subject to foreign currency fluctuations upon conversion to U.S. dollars at each reporting period. The $6.8 million Refund was paid with $5.5 million in cash and the issuance of $1.3 million of common shares of the Company. On March 1, 2016, the Company issued 5,128,604 common shares to Sandstorm at a price of C$0.3496 per common share pursuant to the Agreement to Amend. |
Share capital
Share capital | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 11 Share capital The Company’s authorized share capital consists of unlimited common shares without par value. At June 30, 2018, the Company had 174,372,449 (December 31, 2017 – 173,573,572) shares issued and outstanding. Share purchase warrants At June 30, 2018, the following share purchase warrants were outstanding: Number of share purchase warrants (000’s) Exercise price per share C$ Expiry date 8,655 0.55 January 10, 2022 610 0.55 January 12, 2022 The fair value per share purchase warrant was determined to be C$0.37 based on the following weighted average assumptions using the Black Scholes option pricing model: Share price C$ 0.55 Risk-free interest rate 1.01 % Dividend rate 0.00 % Expected life 5 years Annualized volatility 72 % |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 12 Stock-based compensation The Company provides stock-based compensation to its directors, officers, employees, and consultants through grants of stock options. Stock options The Company has adopted a stock option plan (the "Plan") to grant options to directors, officers, employees and consultants. Under the Plan, the Company may grant options to acquire up to 10% of the issued and outstanding shares of the Company. Options granted can have a term of up to ten years and an exercise price typically not less than the Company's closing stock price on the Toronto Stock Exchange (the "TSX") on the last trading day before the date of grant. Vesting is determined at the discretion of the Board of Directors. Under the Plan, an option holder may elect to terminate an option, in whole or in part and, in lieu of receiving shares to which the terminated option relates (the "Designated Shares"), receive the number of shares, disregarding fractions, which, when multiplied by the weighted average trading price of the shares on the TSX during the five trading days immediately preceding the day of termination (the "Fair Value" per share) of the Designated Shares, has a total dollar value equal to the number of Designated Shares multiplied by the difference between the Fair Value and the exercise price per share of the Designated Shares. Stock option transactions during the six months ended June 30, 2018 are summarized as follows: Number of shares (000’s) Weighted average exercise price C$ Outstanding – beginning of period 9,175 0.38 Granted 100 0.63 Exercised (799 ) 0.45 Cancelled (1,271 ) 0.45 Forfeited/expired - - Outstanding – end of period 7,205 0.36 At June 30, 2018, the following stock options were outstanding: Number of shares (000`s) Vested (000`s) Aggregate intrinsic value C$ (000’s) Exercise price per share C$ Expiry date 785 785 233 0.26 – 0.36 Sept – Dec 2018 860 860 335 0.18 Dec 2019 1,320 1,320 369 0.28 – 0.32 July – Dec 2020 2,240 2,240 473 0.33 – 0.36 Mar – Nov 2021 1,900 1,900 92 0.52 – 0.62 May – Oct 2022 100 50 - 0.63 Feb 2023 7,205 7,155 1,502 During the six months ended June 30, 2018, 345,000 stock options with an exercise price of C$0.47 were exercised and the Company received gross proceeds of C$162,150. In addition, stock options to purchase 1,725,000 Designated Shares with exercise prices ranging from C$0.27 to C$0.47 were terminated and an aggregate of 453,877 common shares were issued. |
Segmented information
Segmented information | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Segment Reporting Disclosure [Text Block] | 13 Segmented information The Company operates in one business segment being the exploration and development of mineral property interests. The Company’s assets are geographically segmented as follows: June 30, 2018 December 31, 2017 Canada $ 6,367 $ 7,226 Other 1,287 1,031 $ 7,654 $ 8,257 |
Exploration costs
Exploration costs | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | 14 Exploration costs Three months ended June 30 Six months ended June 30 2018 2017 2018 2017 Mongolia $ 33 $ 45 $ 65 $ 90 Other (7 ) 64 31 88 $ 26 $ 109 $ 96 $ 178 |
Financial instruments
Financial instruments | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Financial Instruments Disclosure [Text Block] | 15 Financial instruments a) Financial instruments The Company's financial instruments generally consist of cash and cash equivalents, investments, receivables, deposits, accounts payable and accrued liabilities, and loan payable. It is management's opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying values. The Company’s investments are held for trading and are marked-to-market at each period end with changes in fair value recorded to the statement of . The Company is exposed to currency risk by incurring certain expenditures in currencies other than the Canadian dollar. In addition, as certain of the Company’s consolidated subsidiaries’ functional currency is the United States dollar, the Company is exposed to foreign currency translation risk. The Company does not use derivative instruments to reduce this currency risk. b) Fair value classification of financial instruments Fair value measurement is based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value which are: Level 1 — Quoted prices that are available in active markets for identical assets or liabilities. Level 2 — Quoted prices in active markets for similar assets that are observable. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. At June 30, 2018, the Company had Level 1 financial instruments, consisting of cash and cash equivalents and investments, with a fair value of $7.1 million (December 31, 2017 - $7.1 million). |
Supplemental cash flow informat
Supplemental cash flow information | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | 16 Supplemental cash flow information Six months ended June 30 Note 2018 2017 Non-cash investing activities Acquisition of investments from the sale of asset 8 $ 1,000 $ - |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Commitments Disclosure [Text Block] | 17 Commitments and contingencies As at June 30, 2018, the Company had the following commitments: Total Less than 1 year 1 - 3 years 3 - 5 years More than 5 years Lease commitments $ 518 $ 109 $ 344 $ 65 $ - Under the terms of the Amended Sandstorm Agreement, the Company may be subject to a contingent liability if certain events occur (Note 10). |
Administrative Services Agreeme
Administrative Services Agreement | 6 Months Ended |
Jun. 30, 2018 | |
Administrative Agreement Abstract [Abstract] | |
Administrative Agreement [Text Block] | 18 Administrative Services Agreement On May 9, 2017, Mason Resources entered into an Administrative Services Agreement with Entrée whereby Entrée will provide office space, furnishings and equipment, communications facilities and personnel necessary for Mason Resources to fulfill its basic day-to-day head office and executive responsibilities on a pro-rata cost-recovery basis. The total amount charged to Mason Resources for the six months ended June 30, 2018 was $0.4 million (2017 - $0.1 million). |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 19 Related party transactions Other than those described in Note 18, the Company did not enter into any transactions with related parties during the six months ended June 30, 2018. |
Significant accounting polici26
Significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Exploration And Development [Policy Text Block] | Exploration and development Costs of exploration and costs of carrying and retaining unproven properties are expensed as incurred. Exploration costs are charged to operations in the period incurred until such time as it has been determined that a property has economically recoverable reserves, in which case subsequent exploration costs and the costs incurred to develop a property are capitalized. Exploration costs include value-added taxes incurred in foreign jurisdictions when recoverability of those taxes is uncertain. The Company considers mineral rights to be tangible assets and accordingly, the Company capitalizes certain costs related to the acquisition of mineral rights in the period incurred. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, plant and equipment Property, plant and equipment are carried at cost (including development and preproduction costs, capitalized interest, other capitalized financing costs and all direct administrative support costs incurred during the construction period, net of cost recoveries and incidental revenues), less accumulated depletion and depreciation including write-downs. Following the construction period, interest, other financing costs and administrative costs are expensed as incurred. On the commencement of commercial production, depletion of each mining property is provided on the units-of-production basis, using estimated proven and probable reserves as the depletion basis. Property, plant and equipment are depreciated, following the commencement of commercial production, over their expected economic lives using either the units-of-production method or the straight-line method (over one to twenty years). Depreciation is recorded on a declining balance basis at rates ranging from 20% to 30% per annum. Capital works in progress are not depreciated until the capital asset has been put into operation. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | June 30, 2018 December 31, 2017 Cost Accumulated Net book Cost Accumulated Net book Office equipment $ 54 $ 12 $ 42 $ 55 $ 8 $ 47 Computer equipment 145 128 17 149 130 19 Field equipment 37 33 4 39 33 6 Buildings 44 9 35 45 5 40 $ 280 $ 182 $ 98 $ 288 $ 176 $ 112 |
Mineral property interests (Tab
Mineral property interests (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Mineral Property Interests [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The Company recognized a gain on the sale of the Royalty of $0.4 million as of June 8, 2018 as outlined below. Consideration received $ 1,000 Mineral property interest cost - Cañariaco Copper Royalty (514 ) Transaction costs (116 ) Gain on sale $ 370 |
Share capital (Tables)
Share capital (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | At June 30, 2018, the following share purchase warrants were outstanding: Number of share purchase warrants (000’s) Exercise price per share C$ Expiry date 8,655 0.55 January 10, 2022 610 0.55 January 12, 2022 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | The fair value per share purchase warrant was determined to be C$0.37 based on the following weighted average assumptions using the Black Scholes option pricing model: Share price C$ 0.55 Risk-free interest rate 1.01 % Dividend rate 0.00 % Expected life 5 years Annualized volatility 72 % |
Stock-based compensation (Table
Stock-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock option transactions during the six months ended June 30, 2018 are summarized as follows: Number of shares (000’s) Weighted average exercise price C$ Outstanding – beginning of period 9,175 0.38 Granted 100 0.63 Exercised (799 ) 0.45 Cancelled (1,271 ) 0.45 Forfeited/expired - - Outstanding – end of period 7,205 0.36 |
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity [Table Text Block] | At June 30, 2018, the following stock options were outstanding: Number of shares (000`s) Vested (000`s) Aggregate intrinsic value C$ (000’s) Exercise price per share C$ Expiry date 785 785 233 0.26 – 0.36 Sept – Dec 2018 860 860 335 0.18 Dec 2019 1,320 1,320 369 0.28 – 0.32 July – Dec 2020 2,240 2,240 473 0.33 – 0.36 Mar – Nov 2021 1,900 1,900 92 0.52 – 0.62 May – Oct 2022 100 50 - 0.63 Feb 2023 7,205 7,155 1,502 |
Segmented information (Tables)
Segmented information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company operates in one business segment being the exploration and development of mineral property interests. The Company’s assets are geographically segmented as follows: June 30, 2018 December 31, 2017 Canada $ 6,367 $ 7,226 Other 1,287 1,031 $ 7,654 $ 8,257 |
Exploration costs (Tables)
Exploration costs (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Schedule of Exploration Costs Expensed Disclosure [Table Text Block] | Three months ended June 30 Six months ended June 30 2018 2017 2018 2017 Mongolia $ 33 $ 45 $ 65 $ 90 Other (7 ) 64 31 88 $ 26 $ 109 $ 96 $ 178 |
Supplemental cash flow inform33
Supplemental cash flow information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Six months ended June 30 Note 2018 2017 Non-cash investing activities Acquisition of investments from the sale of asset 8 $ 1,000 $ - |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As at June 30, 2018, the Company had the following commitments: Total Less than 1 year 1 - 3 years 3 - 5 years More than 5 years Lease commitments $ 518 $ 109 $ 344 $ 65 $ - |
Nature and continuance of ope35
Nature and continuance of operations (Details Textual) | 6 Months Ended |
Jun. 30, 2018 | |
Entity Information Date To Change Former Legal Or Registered Name | May 9, 2017 |
Plan of arrangement and disco36
Plan of arrangement and discontinued operations (Details Textual) - USD ($) | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | May 09, 2017 | Dec. 31, 2016 | Mar. 01, 2016 | |
Cash and Cash Equivalents, at Carrying Value | $ 6,226,000 | $ 7,766,000 | $ 7,068,000 | $ 13,391,000 | ||
Common Stock Shares Exchanged | 77,805,786 | |||||
Share Price | $ 0.3496 | |||||
Net Assets Transferred Value | $ (44,214,000) | |||||
Mason Resources Corp [Member] | ||||||
Cash and Cash Equivalents, at Carrying Value | $ 8,843,232 | |||||
Common Stock Shares Exchanged | 77,804,786 | |||||
Share Price | $ 0.45 | |||||
Net Assets Transferred Value | $ 44,200,000 |
Significant accounting polici37
Significant accounting policies (Details Textual) | 6 Months Ended |
Jun. 30, 2018 | |
Description About Basis Of Depreciation On Property Plant and Equipment | Depreciation is recorded on a declining balance basis at rates ranging from 20% to 30% per annum |
Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 20 years |
Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 1 year |
Investments (Details Textual)
Investments (Details Textual) - Common Stock [Member] - USD ($) $ in Millions | Jun. 08, 2018 | Jun. 30, 2018 |
Number of Shares Acquired | 478,951 | |
Unrealised Loss On Shares | $ 0.1 |
Property, plant and equipment39
Property, plant and equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Cost | $ 280 | $ 288 |
Accumulated Depreciation | 182 | 176 |
Net book value | 98 | 112 |
Office Equipment [Member] | ||
Cost | 54 | 55 |
Accumulated Depreciation | 12 | 8 |
Net book value | 42 | 47 |
Computer Equipment [Member] | ||
Cost | 145 | 149 |
Accumulated Depreciation | 128 | 130 |
Net book value | 17 | 19 |
Field Equipment [Member] | ||
Cost | 37 | 39 |
Accumulated Depreciation | 33 | 33 |
Net book value | 4 | 6 |
Building [Member] | ||
Cost | 44 | 45 |
Accumulated Depreciation | 9 | 5 |
Net book value | $ 35 | $ 40 |
Long-term investments (Details
Long-term investments (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Oct. 31, 2015 | Jun. 30, 2008 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Oct. 31, 2004 | |
Income (Loss) from Equity Method Investments | $ (62) | $ (55) | $ (75) | $ (103) | ||||
Entree/Oyu Tolgoi JV Property [Member] | ||||||||
Income (Loss) from Equity Method Investments | 100 | 100 | ||||||
Joint Venture Property, Cumulative Expenditures | $ 30,100 | 30,100 | $ 30,100 | |||||
Accrued Interest Expense | $ 200 | $ 100 | ||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | ||||||
Equity Method Investment, Description of Principal Activities | The Company is entitled to 20% or 30% of the mineralization extracted from the Entrée/Oyu Tolgoi JV Property, depending on the depth of mineralization | |||||||
Entree/Oyu Tolgoi JV Property [Member] | Long-term Investment [Member] | ||||||||
Equity Method Investments | $ 100 | $ 100 | $ 200 | |||||
OTLLC [Member] | The Government of Mongolia [Member] | ||||||||
Equity Method Investment, Ownership Percentage | 34.00% | |||||||
OTLLC [Member] | Entree/Oyu Tolgoi JV Property [Member] | ||||||||
Percentage Interest Owned in All Minerals Extracted Below a Sub-surface Depth of 560 Meters | 80.00% | |||||||
Percentage Interest Owned in All Minerals Extracted from Surface to a Depth of 560 Meters | 70.00% | |||||||
OTLLC [Member] | Entree/Oyu Tolgoi JV Property [Member] | Mineral, Exploration [Member] | ||||||||
Cost of Goods and Services Sold | $ 35,000 | |||||||
OTLLC [Member] | Prime Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | 2.00% | ||||||
Shivee Tolgoi and Javhlant [Member] | ||||||||
Mining Licenses, Term | 30 years | |||||||
Mining Licenses, Renewal Rights, Renewal Term | 20 years | |||||||
Shivee Tolgoi [Member] | ||||||||
Ownership in Mining License | 100.00% | 100.00% |
Mineral property interests (Det
Mineral property interests (Details) - USD ($) $ in Thousands | Jun. 08, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Consideration received | $ 1,000 | ||||
Mineral property interest cost - Cañariaco Copper Royalty | (514) | ||||
Transaction costs | (116) | ||||
Gain on sale | $ 400 | $ 370 | $ 0 | $ 370 | $ 0 |
Mineral property interests (D42
Mineral property interests (Details Textual) | Jun. 08, 2018USD ($)shares | Aug. 31, 2015USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 05, 2018$ / shares | Jun. 05, 2018£ / shares |
Disposal Group, Including Discontinued Operation, Consideration | $ 1,000,000 | |||||||
Acquired Shares As Consideration | shares | 478,951 | |||||||
Royalty Received For Any Calendar Quarter Up To And Including December 31 2029 | 20.00% | |||||||
Royalty Received For Any Calendar Quarter Commencing January 1 2030 Up To And Including The Quarter Ending December 31 2034 | 15.00% | |||||||
Royalty Received For Any Calendar Quarter Commencing January 1 2035 Up To And Including The Quarter Ending December 31 2039 | 10.00% | |||||||
Fair Value Of Royalty PassThrough Payments | $ 0 | |||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 400,000 | $ 370,000 | $ 0 | $ 370,000 | $ 0 | |||
Volume Weighted Average Price | (per share) | $ 2.09 | £ 1.57 | ||||||
Candente Agreement [Member] | ||||||||
Business Acquisition Royalty Rate | 0.50% | |||||||
Payments to Acquire Royalty Interests in Mining Properties | $ 500,000 | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Loan payable to Oyu Tolgoi LLC
Loan payable to Oyu Tolgoi LLC (Details Textual) | 6 Months Ended |
Jun. 30, 2018 | |
Financing Arrangements Related To Licenses Monthly Repayments Of Loans Percentage Of Available Cash Flow From Joint Ventures | 90.00% |
Pime Rate [Member] | |
Debt nstrument Basis Spread On Variable Rate1 | 2.00% |
Deferred revenue (Details Textu
Deferred revenue (Details Textual) $ / shares in Units, $ in Millions | Mar. 01, 2016USD ($)Number$ / sharesshares | Feb. 23, 2016USD ($) | Feb. 23, 2016CAD ($) | Jun. 30, 2017shares | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 28, 2013USD ($) | Feb. 28, 2013CAD ($) |
Deferred Revenue | $ 33,200,000 | $ 23,440,000 | $ 24,658,000 | |||||
Equity Participation And Funding Agreement Deposit Refunded During Period | $ 6,800,000 | |||||||
Equity Participation And Funding Agreement Percentage Reduction In The Metal Credits Required To Deliver To Counterparty | 17.00% | 17.00% | ||||||
Equity Participation And Funding Agreement Deposit Refunded During Period Cash Portion | $ 5,500,000 | |||||||
Equity Participation And Funding Agreement Deposit Refunded During Period Equity Portion | 1,300,000 | |||||||
Share Price | $ / shares | $ 0.3496 | |||||||
Equity Participation And Funding Agreement Entity's Economic Interest Below Which No Further Refund Of Deposit Will Be Required | 17.00% | |||||||
Equity Participation And Funding Agreement Entity's Economic Interest Above Which The Entity May Refund A Corresponding Portion Of The Deposit It Cash Or Common Shares | 17.00% | |||||||
Equity Participation And Funding Agreement Entity's Economic Interest Below Which The Entity May Refund A Corresponding Portion Of The Deposit It Cash Or Common Shares | 34.00% | |||||||
Equity Participation And Funding Agreement Determination Of The Value Of Each Common Share Number Of Days After The Reduction In Economic Interest At Which Time Determination Will Be Made | 90 days | |||||||
Equity Participation And Funding Agreement Percentage Of Remaining Shares To Not Be Refunded If Counterparty Becomes A Control Person | 50.00% | |||||||
Equity Participation And Funding Agreement Percentage Of Remaining Shares To Be Refunded If Counterparty Becomes A Control Person | 50.00% | |||||||
Equity Participation And Funding Agreement Maximum Share Ownership Percentage Of Counterparty | 20.00% | |||||||
Equity Participation And Funding Agreement Cash Payments To Be Received From Counterparty Per Ounce Of Gold | $ 220 | |||||||
Equity Participation And Funding Agreement Cash Payments To Be Received From Counterparty Per Ounce Of Silver | 5 | |||||||
Equity Participation And Funding Agreement Cash Payments To Be Received From Counterparty Per Pound Of Copper | 0.50 | |||||||
Equity Participation And Funding Agreement Cash Payments To Be Received From Counterparty Per Ounce Of Gold Beyond Threshold | 500 | |||||||
Equity Participation And Funding Agreement Cash Payments To Be Received From Counterparty Per Ounce Of Silver Beyond Threshold | 10 | |||||||
Equity Participation And Funding Agreement Cash Payments To Be Received From Counterparty Per Pound Of Copper Beyond Threshold | $ 1.10 | |||||||
Share Capital [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | shares | 18,529,000 | |||||||
Sandstorm [Member] | The 2013 Agreement [Member] | ||||||||
Deferred Revenue | $ 40,000,000 | $ 40 | ||||||
Sandstorm [Member] | Equity Participation And Funding Agreement, Agreement To Amend [Member] | ||||||||
Equity Participation And Funding Agreement Deposit Refunded During Period | $ 6,800,000 | $ 30.9 | ||||||
Sandstorm [Member] | Amended Sandstorm Agreement [Member] | ||||||||
Equity Participation And Funding Agreement Initial Term | 50 years | |||||||
Equity Participation And Funding Agreement Term Of Extensions | 10 years | |||||||
Sandstorm [Member] | Amended Sandstorm Agreement [Member] | Share Capital [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | shares | 5,128,604 | |||||||
Sandstorm [Member] | Amended Sandstorm Agreement [Member] | Shivee Tolgoi Mining License Excluding Shivee West [Member] | ||||||||
Equity Participation And Funding Agreement Percentage Of Gold And Silver Credits Agreed To Purchase And Deliver | 28.10% | |||||||
Equity Participation And Funding Agreement Percentage Of Copper Agreed To Purchase And Deliver | 2.10% | |||||||
Sandstorm [Member] | Amended Sandstorm Agreement [Member] | Javhlant Mining License [Member] | ||||||||
Equity Participation And Funding Agreement Percentage Of Gold And Silver Credits Agreed To Purchase And Deliver | 21.30% | |||||||
Equity Participation And Funding Agreement Percentage Of Copper Agreed To Purchase And Deliver | 2.10% | |||||||
Sandstorm [Member] | Amended Sandstorm Agreement [Member] | Maximum [Member] | ||||||||
Equity Participation And Funding Agreement Threshold Number Of Ounces Of Gold To Be Produced Before The Cash Payments From Counterparty Will Be Increased | Number | 8,600,000 | |||||||
Equity Participation And Funding Agreement Threshold Number Of Ounces Of Silver To Be Produced Before The Cash Payments From Counterparty Will Be Increased | Number | 40,300,000 | |||||||
Equity Participation And Funding Agreement Threshold Number Of Pounds Of Copper To Be Produced Before The Cash Payments From Counterparty Will Be Increased | Number | 9,100,000,000 |
Share capital (Details)
Share capital (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Warrants Expiring on January 10, 2022 [Member] | |
Number of share purchase warrants | shares | 8,655 |
Exercise price per share C$ | $ / shares | $ 0.55 |
Expiry date | Jan. 10, 2022 |
Warrants Expiring on January 12, 2022 [Member] | |
Number of share purchase warrants | shares | 610 |
Exercise price per share C$ | $ / shares | $ 0.55 |
Expiry date | Jan. 12, 2022 |
Share capital (Details 1)
Share capital (Details 1) - Warrant [Member] | 6 Months Ended |
Jun. 30, 2018$ / shares | |
Measurement Input, Exercise Price [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Share price | $ 0.55 |
Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Risk-free interest rate | 1.01% |
Measurement Input, Expected Dividend Rate [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Dividend rate | 0.00% |
Measurement Input, Expected Term [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Expected life | 5 years |
Measurement Input, Price Volatility [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Annualized volatility | 72.00% |
Share capital (Details Textual)
Share capital (Details Textual) - $ / shares shares in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Common Stock, Shares, Issued | 174,372,449 | 173,573,572 |
Warrant [Member] | Measurement Input, Exercise Price [Member] | ||
Fair Values Assumptions Exercise Price | $ 0.37 |
Stock-based compensation (Detai
Stock-based compensation (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Weighted average exercise price, Exercised | $ 0.47 |
Stock options [Member] | |
Number of shares, Outstanding - beginning of period | shares | 9,175 |
Number of shares, Granted | shares | 100 |
Number of shares, Exercised | shares | (799) |
Number of shares, Cancelled | shares | (1,271) |
Number of shares, Forfeited/expired | shares | 0 |
Number of shares, Outstanding - end of period | shares | 7,205 |
Weighted average exercise price, Outstanding - beginning of period | $ 0.38 |
Weighted average exercise price, Granted | 0.63 |
Weighted average exercise price, Exercised | 0.45 |
Weighted average exercise price, Cancelled | 0.45 |
Weighted average exercise price, Forfeited/expired | 0 |
Weighted average exercise price, Outstanding - end of period | $ 0.36 |
Stock-based compensation (Det49
Stock-based compensation (Details 1) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2018CAD ($)$ / sharesshares | |
Number of shares (in shares) | 7,205 |
Vested (in shares) | 7,155 |
Aggregate intrinsic value | $ | $ 1,502 |
Range One [Member] | |
Number of shares (in shares) | 785 |
Vested (in shares) | 785 |
Aggregate intrinsic value | $ | $ 233 |
Exercise price per share, lower range limit | $ / shares | $ 0.26 |
Exercise price per share, upper range limit | $ / shares | $ 0.36 |
Expiry Date | Sept – Dec 2018 |
Range Two [Member] | |
Number of shares (in shares) | 860 |
Vested (in shares) | 860 |
Aggregate intrinsic value | $ | $ 335 |
Exercise price per share | $ / shares | $ 0.18 |
Expiry Date | Dec 2,019 |
Range Three [Member] | |
Number of shares (in shares) | 1,320 |
Vested (in shares) | 1,320 |
Aggregate intrinsic value | $ | $ 369 |
Exercise price per share, lower range limit | $ / shares | $ 0.28 |
Exercise price per share, upper range limit | $ / shares | $ 0.32 |
Expiry Date | July – Dec 2020 |
Range Four [Member] | |
Number of shares (in shares) | 2,240 |
Vested (in shares) | 2,240 |
Aggregate intrinsic value | $ | $ 473 |
Exercise price per share, lower range limit | $ / shares | $ 0.33 |
Exercise price per share, upper range limit | $ / shares | $ 0.36 |
Expiry Date | Mar – Nov 2021 |
Range Five [Member] | |
Number of shares (in shares) | 1,900 |
Vested (in shares) | 1,900 |
Aggregate intrinsic value | $ | $ 92 |
Exercise price per share, lower range limit | $ / shares | $ 0.52 |
Exercise price per share, upper range limit | $ / shares | $ 0.62 |
Expiry Date | May – Oct 2022 |
Range Six [Member] | |
Number of shares (in shares) | 100 |
Vested (in shares) | 50 |
Aggregate intrinsic value | $ | $ 0 |
Exercise price per share | $ / shares | $ 0.63 |
Expiry Date | Feb 2,023 |
Stock-based compensation (Det50
Stock-based compensation (Details Textual) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018USD ($)shares | Jun. 30, 2018CAD ($)$ / sharesshares | Jun. 30, 2017USD ($) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0.47 | ||
Proceeds from Stock Options Exercised | $ 130 | $ 162,150 | $ 39 |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 1,725,000 | 1,725,000 | |
Maximum [Member] | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0.47 | ||
Minimum [Member] | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0.27 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares | 345,000 | 345,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0.45 | ||
Stock Issued During Period, Shares, New Issues | shares | 453,877 | 453,877 |
Segmented information (Details)
Segmented information (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | $ 7,654 | $ 8,257 |
Canada [Member] | ||
Assets | 6,367 | 7,226 |
Other [Member] | ||
Assets | $ 1,287 | $ 1,031 |
Exploration costs (Details)
Exploration costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Exploration Expense | $ 26 | $ 109 | $ 96 | $ 178 |
Mongolia | ||||
Exploration Expense | 33 | 45 | 65 | 90 |
Other | ||||
Exploration Expense | $ (7) | $ 64 | $ 31 | $ 88 |
Financial instruments (Details
Financial instruments (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents At Carrying Value | $ 6,226 | $ 7,068 | $ 7,766 | $ 13,391 |
Fair Value, Inputs, Level 1 [Member] | ||||
Cash And Cash Equivalents At Carrying Value | $ 7,100 | $ 7,100 |
Supplemental cash flow inform54
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Non-cash investing activities [Abstract] | ||
Acquisition of investments from the sale of asset | $ 1,000 | $ 0 |
Commitments and contingencies55
Commitments and contingencies (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Lease commitments, total | $ 518 |
Lease commitments, less than 1 year | 109 |
Lease commitments, 1-3 Years | 344 |
Lease commitments, 3- 5 years | 65 |
Lease commitments, More than 5 years | $ 0 |
Administrative Services Agree56
Administrative Services Agreement (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Mason Resource [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | $ 0.4 | $ 0.1 |