White Mountain Titanium (WMTM) 10-Q 21 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 21, 2016
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Trading Symbol	wmtm
Entity Registrant Name	WHITE MOUNTAIN TITANIUM CORP
Entity Central Index Key	1,284,766
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		96,114,442
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Condensed Consolidated Interim

Condensed Consolidated Interim Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current
Cash	$ 677,985	$ 396,878
Prepaid expenses	51,147	196,924
Receivables	106,507	2,203
Total Current Assets	835,639	596,005
Property and Equipment	168,506	286,416
Mineral Properties	651,950	651,950
Total Assets	1,656,095	1,534,371
Current Liabilities
Accounts payable and accrued liabilities	171,256	135,354
Long Term Liabilities
Convertible Note	1,014,167	0
Derivative Liability	676,251	0
Total Long Term Liabilities	1,690,418	0
Total Liabilities	1,861,674	135,354
Stockholders' Equity
Preferred Stock and Paid-in Capital in Excess of $0.001 Par Value 100,000,000 shares authorized 100 (2015 - Nil) shares issued and outstanding	0	0
Common Stock and Paid-in Capital in Excess of $0.001 Par Value 500,000,000 shares authorized 96,114,442 (2015 - 96,114,442) shares issued and outstanding	61,587,285	61,052,678
Accumulated Deficit	(61,792,864)	(59,653,661)
Total Stockholders' Equity (Deficit)	(205,579)	1,399,017
Total Liabilities and Stockholders' Equity (Deficit)	$ 1,656,095	$ 1,534,371

Condensed Consolidated Interim3

Condensed Consolidated Interim Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	100	0
Preferred Stock, shares outstanding	100	0
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, shares authorized	500,000,000	500,000,000
Common Stock, shares issued	96,114,442	96,114,442
Common Stock, shares outstanding	96,114,442	96,114,442

Condensed Consolidated Interim4

Condensed Consolidated Interim Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Expenses
Advertising and promotion	$ 4,832	$ 30,291	$ 31,740	$ 275,637
Amortization	18,413	19,497	54,008	60,894
Bank charges and interest	137,896	3,664	279,069	13,237
Consulting fees	(50,152)	227,679	133,556	466,815
Consulting fees - directors and officers	49,250	201,500	278,250	794,127
Exploration	220,094	108,539	643,817	786,604
Filing fees	1,715	2,557	16,792	20,509
Insurance	19,899	7,857	50,193	28,765
Investor relations	0	680	286	33,073
Licenses and taxes, net	54	231	6,812	2,408
Management fees	111,057	9,074	129,007	133,519
Office	16,776	14,969	54,203	47,465
Professional fees	98,695	79,703	262,341	272,856
Rent	52,825	52,932	149,461	163,282
Staff salaries and benefits	11,830	22,676	46,843	58,522
Telephone	3,650	7,434	12,110	20,052
Transfer agent fees	8,290	1,340	13,897	4,587
Travel and vehicle	32,300	65,852	81,974	188,383
Loss Before Other Items	(737,424)	(856,475)	(2,244,359)	(3,370,735)
Gain on Derivative Liability	122,087	0	169,558	0
Foreign Exchange	(5,936)	35,185	456	(41,267)
Interest Income	0	68	0	67
Loss on Disposal of Assets	(64,858)	0	(64,858)	0
Net Loss and Comprehensive Loss for Period	$ (686,131)	$ (821,222)	$ (2,139,203)	$ (3,411,935)
Basic and Diluted Loss Per Common Share	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.04)
Weighted Average Number of Shares of Common Stock Outstanding	96,114,442	94,508,653	96,114,442	90,451,637

Condensed Consolidated Interim5

Condensed Consolidated Interim Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Activities
Net loss for period	$ (2,139,203)	$ (3,411,936)
Items not involving cash
Amortization	54,008	60,894
Stock-based compensation	129,007	451,369
Common stock issued for services	0	135,000
Interest accretion on convertible note	265,576	0
Loss on disposal of assets	64,858	0
Gain on derivative liability	(169,558)	0
Changes in non-cash working capital
Prepaid expenses	145,777	(148,749)
Receivables	(104,304)	20,811
Accounts payable and accrued liabilities	35,902	(90,090)
Cash Used in Operating Activities	(1,717,937)	(2,982,701)
Investing Activities
Additions to property and equipment	(956)	(1,025)
Cash Used in Investing Activities	(956)	(1,025)
Financing Activities
Cash received from issuance of convertible note	2,000,000	0
Issuance of common stock for cash	0	3,255,000
Cash Provided by Financing Activities	2,000,000	3,255,000
Inflow (outflow) of Cash	281,107	271,274
Cash, Beginning of Period	396,878	949,806
Cash, End of Period	677,985	1,221,080
Supplemental Cash Flow Information
Income tax paid	0	0
Interest paid	$ 0	$ 0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Interim Stockholders Equity - 9 months ended Sep. 30, 2016 - USD ($)	Shares of Common Stock	Common Stock and Paid-In Capital in Excess of Par Value [Member]	Shares of Preferred Stock	Accumulated Deficit [Member]	Total
Beginning Balance at Dec. 31, 2015	$ 96,114,442	$ 61,052,678		$ (59,653,661)	$ 1,399,017
Stock-based compensation		129,007			$ 129,007
Preferred shares issued			$ 100
Preferred shares issued (in shares)					100
Equity component of convertible note		405,600			$ 405,600
Net loss for the period				(2,139,203)	(2,139,203)
Ending Balance at Sep. 30, 2016	$ 96,114,442	$ 61,587,285	$ 100	$ (61,792,864)	$ (205,579)

NATURE OF BUSINESS, BASIS OF PR

NATURE OF BUSINESS, BASIS OF PRESENTATION AND GOING CONCERN	9 Months Ended
	Sep. 30, 2016
NATURE OF BUSINESS, BASIS OF PRESENTATION AND GOING CONCERN [Text Block]	1. NATURE OF BUSINESS, BASIS OF PRESENTATION AND GOING CONCERN White Mountain Titanium Corporation, through its subsidiaries, (collectively, the “Company”) is in the business of exploring for titanium deposits or reserves on its Cerro Blanco mining concessions. The Company is an exploration stage company and its principal business is to advance exploration and development activities on the Cerro Blanco rutile (titanium dioxide) Property (“Cerro Blanco”) located in Region III of northern Chile. The accompanying condensed consolidated interim financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at September 30, 2016 and for the period then ended have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States (“US”) accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. These unaudited condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s December 31, 2015, Annual Report on Form 10-K filed with the US Securities and Exchange Commission (“SEC”) on March 28, 2016. The organization and business of the Company, accounting policies followed by the Company, other than the recently adopted accounting pronouncements discussed below and other information are contained in the notes to the Company’s audited consolidated financial statements for the year ended December 31, 2015 filed as part of the Company’s December 31, 2015 Annual Report on Form 10-K. The results of operations for the period ended September 30, 2016 are not necessarily indicative of the operating results for the full year. These condensed consolidated interim financial statements have been prepared by management on the basis of US GAAP applicable to a going concern, which assumes the Company will continue to operate for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. The Company has an accumulated deficit of $61,792,864 at September 30, 2016 (December 31, 2015 - $59,653,661), has not yet commenced revenue-producing operations, and has significant expenditure requirements to continue to advance its exploration and development activities on the Cerro Blanco property. Management intends to raise additional capital through stock issuance to finance operations. However, there is no assurance that management will be successful in its future financing activities.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
SIGNIFICANT ACCOUNTING POLICIES [Text Block]	2. SIGNIFICANT ACCOUNTING POLICIES Convertible debentures Convertible debentures and warrants are bifurcated between debt component and equity component based on the relative fair values of the debt and warrants, the conversion component of the debt component is then fair valued and accounted for as additional discount to the debt component and is treated as a derivative liability and fair valued every balance sheet date, the resulting discount to the debt component is amortized over the term of the debt using the effective interest rate method. The following accounting pronouncements were adopted by the Company: During the period, the Company adopted update No. 2015-02 Consolidation (Topic 810) Amendments to the Consolidated Analysis. 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities 2. Eliminate the presumption that a general partner should consolidate a limited partnership 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 The amendments in this Update are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this standard had no effects on the Company’s condensed consolidated interim financial statements. During the current year, the Company adopted FASB Update No. 2014-12— Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In April 2015, the FASB issued ASU No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Prior to the issuance of the standard, debt issuance costs were required to be presented in the balance sheet as an asset. ASU 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The adoption of this standard had no effects on the Company’s condensed consolidated interim financial statements. In August 2014, the FASB issued Update No. 2014-15— Presentation of Financial Statements— Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. The core principle of the standard is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The Company will be required to adopt the new standard in the first quarter of 2019. The Company is currently evaluating the impact this new standard will have on its financial statements.

FINANCIAL INSTRUMENTS AND RISKS

FINANCIAL INSTRUMENTS AND RISKS	9 Months Ended
	Sep. 30, 2016
FINANCIAL INSTRUMENTS AND RISKS [Text Block]	3. FINANCIAL INSTRUMENTS AND RISKS (a) The Company has classified its financial instruments as follows: Cash – as held-for-trading The carrying amounts of the Company’s cash, receivables and accounts payables and accrued liabilities approximate their respective fair values due to the short maturities of these instruments. The Company’s Convertible Note is classified as other financial liabilities and is carried at amortized cost. The fair value of the Convertible Note approximates its face value. The three levels of the fair value hierarchy are described below: • Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and • Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs). The following table summarizes the fair value by level at September 30, 2016 and December 31, 2015 for assets and liabilities measured at fair value on a recurring basis: September 30, 2016 Level 1 Level 2 Level 3 Total Cash $ 677,985 $ - $ - $ 677,985 Derivative Instruments $ - $ 676,251 $ - $ 676,251 December 31, 2015 Level 1 Level 2 Level 3 Total Cash $ 396,878 $ - $ - $ 396,878 (b) Credit risk: Credit risk is the risk that a counterparty to a financial instrument will fail to discharge its contractual obligations. The Company mitigates credit risk by maintaining its cash with high credit quality US, Chilean and Chinese financial institutions. (c) Liquidity risk: Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required for operations and anticipated investing and financing activities. The Company’s cash at September 30, 2016 and December 31, 2015 totaled $677,985 and $396,878, respectively. At September 30, 2016 and December 31, 2015, the Company had accounts payable and accrued liabilities of $171,256, and $135,354, respectively, all of which fall due in the next fiscal quarter. The Company has a Convertible Note for principal amount of $2,000,000 which is due on March 16, 2018 (Note 6). (d) Market risk: Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk. (i) Interest rate risk (a) To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk. The Company’s Convertible Note is not exposed to interest rate cash flow risk as it bears a fixed interest rate. (b) To the extent that changes in prevailing market interest rates differ from the interest rate in the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk. The Company’s cash consists of cash held in bank accounts. Due to the short-term nature of this financial instrument, fluctuations in market interest rates do not have a significant impact on estimated fair values and on cash flows associated with the interest income. The convertible notes have a fixed rate of 7% (note 6). The Company is not exposed to interest cash-flow risk as fluctuations on market rates do not impact the Company’s cash-flows. (ii) Foreign currency risk The Company is exposed to foreign currency risk to the extent expenditures incurred or funds received and balances maintained by the Company are denominated in currencies other than the US dollar (primarily Chilean pesos (“CLP”), Chinese yuan (“RMB”), and Hong Kong dollars (“HKD”)). As at September 30, 2016, the Company has net monetary liabilities of $9,454 (December 31, 2015 - net monetary liabilities of $44,693) denominated in CLP, net monetary assets of $1,100 (December 31, 2015 - $7,678) denominated in HKD, and net monetary assets of $77,204 (December 31, 2015 - $152,095) denominated in RMB. As at September 30, 2016, the Company’s sensitivity analysis suggests that a change in the absolute rate of exchange in CLP, RMB and HKD by 10% will not have a material effect on the Company’s business, financial condition and results of operations. The Company has not entered into any foreign currency contracts to mitigate this risk. (iii) Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk. The Company is not exposed to other price risk.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2016
PROPERTY AND EQUIPMENT [Text Block]	4. PROPERTY AND EQUIPMENT September 30, 2016 Accumulated Cost Amortization Net Land held for future development $ 146,636 $ - $ 146,636 Vehicles 129,439 128,790 649 Office furniture and fixtures 69,621 63,608 6,013 Office equipment 33,574 26,358 7,216 Computer equipment 7,553 7,553 - Computer software 69,175 68,995 180 Field equipment 154,926 147,114 7,812 $ 610,924 $ 442,418 $ 168,506 December 31, 2015 Accumulated Cost Amortization Net Land held for future development $ 146,636 $ - $ 146,636 Vehicles 129,439 117,590 11,849 Office furniture and fixtures 175,048 81,779 93,269 Office equipment 33,574 22,818 10,756 Computer equipment 7,553 7,553 - Computer software 68,995 68,995 - Field equipment 154,150 130,244 23,906 $ 715,395 $ 428,979 $ 286,416

MINERAL PROPERTIES

MINERAL PROPERTIES	9 Months Ended
	Sep. 30, 2016
MINERAL PROPERTIES [Text Block]	5. MINERAL PROPERTIES Cerro Blanco On September 5, 2003, the Company, through its wholly-owned Chilean subsidiary, White Mountain Chile, entered into a purchase agreement with Compañía Contractual Mineral Ojos del Salado (“Ojos del Salado”), a wholly-owned Chilean subsidiary of Phelps Dodge Corporation, to acquire a 100% interest in nine exploration mining concessions, collectively known as Cerro Blanco. Cerro Blanco is located in Region III of northern Chile, approximately 39 kilometers, or 24 miles, west of the city of Vallenar. Consideration for the purchase, including legal fees, was $651,950. The purchase agreement covering Cerro Blanco was originally entered into between Ojos del Salado and Dorado Mineral Resources NL (“Dorado”) on March 17, 2000. Under that agreement, Dorado purchased the mining exploitation concessions from Ojos del Salado for $1,000,000, of which $350,000 was paid. A first mortgage and prohibitions against entering into other contracts regarding mining concessions without the prior written consent of Ojos del Salado had also been established in favor of Ojos del Salado. On September 5, 2003, White Mountain Chile assumed Dorado’s obligations under the purchase agreement, including the mortgage and prohibitions, with payment terms as described above. La Martina As a result of regional exploration carried out in January 2013, a new rutile prospect named La Martina has been discovered and staked in the Atacama, or Region III, geographic region of northern Chile. La Martina, which is located approximately 45 kilometres southwest of the city of Vallenar and 17 kilometres southwest of the Cerro Blanco project, consists of six registered exploration concessions. Concession fees and other costs incurred in staking the property have been expensed. Ownership in mineral properties involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyance history characteristic of mineral properties. The Company has investigated ownership of its mineral properties, and to the best of its knowledge, ownership of its interests is in good standing. At present, the Company has determined that it has no material asset retirement obligations (“AROs”). Exploration expenditures incurred by the Company during the nine months ended September 30, 2016 and 2015 were as follows: 2016 2015 Assaying $ 690 $ - Concession fees 87,269 76,612 Environmental - 241,356 Equipment rental 6,523 9,409 Geological consulting fees 98,871 35,790 Site costs 444,042 402,889 Transportation 6,422 20,548 Exploration expenditures for period $ 643,817 $ 786,604

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2016
NOTES PAYABLE [Text Block]	6. NOTES PAYABLE On March 16, 2016, the Company and its wholly-owned subsidiary Sociedad Contractual Minera White Mountain Titanium Corporation entered into a loan agreement and issued a 7% Senior Convertible Promissory Note to the lender for a total of $2,000,000 (the “Convertible Note”). The Convertible Note has a maturity date of March 16, 2018 and bears simple interest of 7% per annum on the unpaid principal amount until the principal amount is repaid in full. The Convertible Note is convertible into shares of the Company’s Series A Preferred Stock (“Series A Shares”) at the rate of $0.12 per share, par value of $0.001 per share. Except for the right to elect one director, the Series A Shares have the same voting rights as Common Stockholders and are convertible into Common Stock at conversion price of $0.12 per share. The Convertible Note will automatically convert into Series A Preferred Stock if the Company successfully raises an additional $8,000,000, the proceeds of which are allocated for certain qualified milestones relating to the Cerro Blanco project, or if the Company secures a water off-take agreement for its proposed desalination plant with volume and price components that are mutually satisfactory to both the Company and the lender. In addition, the Company issued to the lender 100 shares of Series A Preferred Stock with a $0.001 par value and warrants to purchase 8,333,333 shares of Common Stock at price of $0.30 per share until March 16, 2019. An amount of $12 was recognized for the preferred share issuance which has been recognized as a derivative liability. In the event of default, the interest rate increases to 25% per annum. Subject to certain exceptions, the Convertible Note is senior to any other indebtedness of the Company. The fair value of the liability component was determined using present value of expected cash-flows. The conversion component of the Convertible Note was classified as a derivative liability. The estimated fair value of the derivative liability component was valued using the Black-Scholes option model using the following assumptions: volatility of 145.14%, expected term of 2 years, discount rate of 1.13% and dividend yield of 0%. The warrants were classified as equity and were recorded as additional paid in capital at their estimated fair value using the Black-Scholes option model using the following assumptions: volatility of 131.93%, expected term of 3 years, discount rate of 1.13% and dividend yield of 0%. Based on the valuation of the instruments, the proportionate allocation of fair values of the Convertible Note on initial recognition was allocated to the debt component as $748,591, the derivative liability component as $845,809 and the warrants component as $405,600. The derivative component was further revalued at September 30, 2016 resulting in a gain on derivative liability of $169,558 and an ending balance of $676,251. The derivative liability component was revalued using the following assumptions: volatility of 161.54%, expected term of 1.46 years, discount rate of 1.13% and dividend yield of 0%. $265,576 of accretion expense was recognized using the effective interest rate method during the nine months ended September 30, 2016. The debt component as at September 30, 2016 is $1,014,167.

CAPITAL STOCK

CAPITAL STOCK	9 Months Ended
	Sep. 30, 2016
CAPITAL STOCK [Text Block]	7. CAPITAL STOCK (a) Common stock During the nine months ended September 30, 2016, no common stock was issued. (b) Preferred stock During the period ended September 30, 2016, the Company designated 19,000,100 shares of Series A preferred stock with a par value of $0.001 per share. Each share of preferred stock is convertible into one common share at any time at the holder’s option, at a conversion of $0.12 per share subject to the adjustments to the conversion ratio. The adjustment to the conversion price of these preferred shares is based on the lowest of the share price of any common shares issued, the exercise price of any options granted or repriced, or any common shares issued after the issuance of these preferred shares. The preferred stock is unlisted, non-retractable and non-redeemable. The preferred stockholders are entitled to the number of votes equal to the number of whole shares of common stock into which the preferred stock is convertible. The preferred stockholders are further entitled to the same dividends and distributions as the common stockholders. In connection with the issuance of the Convertible Note ( Note 6 (c) Stock options The Company has a stock option plan, adopted in 2005, and a stock option/stock issuance plan, adopted in 2010, which has been replaced by a stock incentive plan adopted in June 2015 (individually, the “2005 Plan”, the “2010 Plan”, and the “2015 Plan”, respectively, and, collectively, the “Plans”). Under the Plans, the Company is authorized to grant options to executive officers and directors, employees and consultants of the Company. The 2005 Plan was originally authorized to grant 3,140,000 shares, and the 2015 Plan was originally authorized to grant 4,641,040 shares, which amount is increased at the end of each year to represent 10% of the total number of shares of Common Stock outstanding on the last trading day in December of the immediately preceding calendar year, less 3,949,500 shares. Effective January 1, 2016, the 2015 Plan authorized shares automatically increased to 5,661,944 shares. The terms of any stock options granted under the 2005 Plan may not exceed five years and the exercise price of any stock option granted may not be discounted below the maximum discount permitted under the policies of the Toronto Stock Exchange. The terms of any stock options granted under the 2015 Plan may not exceed ten years and the exercise price of any stock option plan is fixed by the plan administrator. The Company originally also adopted a management compensation pool for the benefit of officers, directors and employees of the Company. The pool consists of 1% of the outstanding shares at the end of each year. The shares granted under the compensation pool program are issued under the 2015 Plan. The following table represents service-based stock option activity during the nine months ended September 30, 2016 and the year ended December 31, 2015: September 30, 2016 December 31, 2015 Number of Weighted Average Number of Weighted Average Shares Exercise Price Shares Exercise Price Outstanding - beginning of period 1,375,000 $ 0.45 1,225,000 $ 0.55 Granted - $ - 300,000 $ 0.45 Expired /Cancelled (700,000 ) $ 0.45 (150,000 ) $ 1.30 Outstanding and exercisable – end of period 675,000 $ 0.45 1,375,000 $ 0.45 As at September 30, 2016 and December 31, 2015, the following stock options were outstanding: Exercise September 30, December 31, Expiry Date Price 2016 2015 October 2, 2017 $ 0.45 375,000 375,000 December 31, 2017 $ 0.45 300,000 1,000,000 675,000 1,375,000 The shares under option at September 30, 2016 had an intrinsic value of $nil (December 31, 2015 - $nil) and a weighted average remaining contractual life of 1.12 (December 31, 2015 – 1.94) years. (d) Stock-based compensation During the nine months ended September 30, 2016, $129,007 (2015 - $451,369) was recognized as stock-based compensation for shares of common stock issuable upon the market performance of the Company’s stock. (e) Warrants On March 16, 2016, the Company issued warrants to purchase 8,333,333 shares of Common Stock, in connection with the issuance of Convertible Promissory Note ( Note 6 Stock purchase warrant activity for the period ended September 30, 2016 and the year ended December 31, 2015 is as follows: September 30, 2016 December 31, 2015 Number Weighted Number Weighted of Warrants Average of Warrants Average Exercise Price Exercise Price Outstanding - beginning of year 35,362,585 $ 0.34 21,487,585 $ 0.55 Issued 8,333,333 0.30 13,875,000 0.35 Expired (5,048,299 ) 0.30 - Outstanding 38,647,619 $ 0.34 35,362,585 $ 0.34 As at September 30, 2016 and December 31, 2015, the following warrants were outstanding: September30 December 31, Expiry Date Exercise Price 2016 2015 April 30, 2016 $ 0.30 - 1,770,328 April 30, 2016 $ 0.30 - 910,534 April 30, 2016 $ 0.30 - 2,367,437 December 31, 2017 $ 0.30 5,714,286 5,714,286 December 31, 2017 $ 0.65 600,000 600,000 December 31, 2018 $ 0.35 4,500,000 4,500,000 December 31, 2018 $ 0.35 5,625,000 5,625,000 December 31, 2018 $ 0.35 13,875,000 13,875,000 March 16, 2019 $ 0.30 8,333,333 - 38,647,619 35,362,585

LOSS PER SHARE

LOSS PER SHARE	9 Months Ended
	Sep. 30, 2016
LOSS PER SHARE [Text Block]	8. LOSS PER SHARE Potentially dilutive securities not included in diluted weighted average shares outstanding include shares underlying 675,000 in outstanding options and 38,647,619 in outstanding warrants.

COMMITMENTS

COMMITMENTS	9 Months Ended
	Sep. 30, 2016
COMMITMENTS [Text Block]	9. COMMITMENTS The Company entered into a lease agreement for office premises in China that commenced July 1, 2014 with an expiration date of June 30, 2021. The total lease payment pursuant to the agreement is $584,018, of which the remaining balance at September 30, 2016 is $375,440. In June 2016, the Company reached an agreement with the landlord and terminated the lease on August 2, 2016 with a loss of a deposit of $14,000. The Company entered into a lease agreement for office premises in China that commenced September 1, 2016 and expires August 31, 2018. The total lease payment pursuant to the agreement is $54,710, of which the remaining balance at September 30, 2016 is $52,430.

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Convertible debentures [Policy Text Block]	Convertible debentures Convertible debentures and warrants are bifurcated between debt component and equity component based on the relative fair values of the debt and warrants, the conversion component of the debt component is then fair valued and accounted for as additional discount to the debt component and is treated as a derivative liability and fair valued every balance sheet date, the resulting discount to the debt component is amortized over the term of the debt using the effective interest rate method. The following accounting pronouncements were adopted by the Company: During the period, the Company adopted update No. 2015-02 Consolidation (Topic 810) Amendments to the Consolidated Analysis. 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities 2. Eliminate the presumption that a general partner should consolidate a limited partnership 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 The amendments in this Update are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this standard had no effects on the Company’s condensed consolidated interim financial statements. During the current year, the Company adopted FASB Update No. 2014-12— Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In April 2015, the FASB issued ASU No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Prior to the issuance of the standard, debt issuance costs were required to be presented in the balance sheet as an asset. ASU 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The adoption of this standard had no effects on the Company’s condensed consolidated interim financial statements. In August 2014, the FASB issued Update No. 2014-15— Presentation of Financial Statements— Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. The core principle of the standard is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The Company will be required to adopt the new standard in the first quarter of 2019. The Company is currently evaluating the impact this new standard will have on its financial statements.

FINANCIAL INSTRUMENTS AND RIS17

FINANCIAL INSTRUMENTS AND RISKS (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Schedule of Summary of Fair Value Measurement by Level for Assets and Liabilities Measured at Fair Value on Recurring Basis [Table Text Block]	September 30, 2016 Level 1 Level 2 Level 3 Total Cash $ 677,985 $ - $ - $ 677,985 Derivative Instruments $ - $ 676,251 $ - $ 676,251	December 31, 2015 Level 1 Level 2 Level 3 Total Cash $ 396,878 $ - $ - $ 396,878

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Property and Equipment [Table Text Block]	September 30, 2016 Accumulated Cost Amortization Net Land held for future development $ 146,636 $ - $ 146,636 Vehicles 129,439 128,790 649 Office furniture and fixtures 69,621 63,608 6,013 Office equipment 33,574 26,358 7,216 Computer equipment 7,553 7,553 - Computer software 69,175 68,995 180 Field equipment 154,926 147,114 7,812 $ 610,924 $ 442,418 $ 168,506	December 31, 2015 Accumulated Cost Amortization Net Land held for future development $ 146,636 $ - $ 146,636 Vehicles 129,439 117,590 11,849 Office furniture and fixtures 175,048 81,779 93,269 Office equipment 33,574 22,818 10,756 Computer equipment 7,553 7,553 - Computer software 68,995 68,995 - Field equipment 154,150 130,244 23,906 $ 715,395 $ 428,979 $ 286,416

MINERAL PROPERTIES (Tables)

MINERAL PROPERTIES (Tables)	9 Months Ended
	Sep. 30, 2016
Exploration Expenditures Incurred [Table Text Block]	2016 2015 Assaying $ 690 $ - Concession fees 87,269 76,612 Environmental - 241,356 Equipment rental 6,523 9,409 Geological consulting fees 98,871 35,790 Site costs 444,042 402,889 Transportation 6,422 20,548 Exploration expenditures for period $ 643,817 $ 786,604

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	9 Months Ended
	Sep. 30, 2016
Service-Based Stock Option Activity [Table Text Block]	September 30, 2016 December 31, 2015 Number of Weighted Average Number of Weighted Average Shares Exercise Price Shares Exercise Price Outstanding - beginning of period 1,375,000 $ 0.45 1,225,000 $ 0.55 Granted - $ - 300,000 $ 0.45 Expired /Cancelled (700,000 ) $ 0.45 (150,000 ) $ 1.30 Outstanding and exercisable – end of period 675,000 $ 0.45 1,375,000 $ 0.45
Stock Options Outstanding [Table Text Block]	Exercise September 30, December 31, Expiry Date Price 2016 2015 October 2, 2017 $ 0.45 375,000 375,000 December 31, 2017 $ 0.45 300,000 1,000,000 675,000 1,375,000
Stock Purchase Warrant Activity [Table Text Block]	September 30, 2016 December 31, 2015 Number Weighted Number Weighted of Warrants Average of Warrants Average Exercise Price Exercise Price Outstanding - beginning of year 35,362,585 $ 0.34 21,487,585 $ 0.55 Issued 8,333,333 0.30 13,875,000 0.35 Expired (5,048,299 ) 0.30 - Outstanding 38,647,619 $ 0.34 35,362,585 $ 0.34
Share Purchase Warrants Outstanding [Table Text Block]	September30 December 31, Expiry Date Exercise Price 2016 2015 April 30, 2016 $ 0.30 - 1,770,328 April 30, 2016 $ 0.30 - 910,534 April 30, 2016 $ 0.30 - 2,367,437 December 31, 2017 $ 0.30 5,714,286 5,714,286 December 31, 2017 $ 0.65 600,000 600,000 December 31, 2018 $ 0.35 4,500,000 4,500,000 December 31, 2018 $ 0.35 5,625,000 5,625,000 December 31, 2018 $ 0.35 13,875,000 13,875,000 March 16, 2019 $ 0.30 8,333,333 - 38,647,619 35,362,585

NATURE OF BUSINESS, BASIS OF 21

NATURE OF BUSINESS, BASIS OF PRESENTATION AND GOING CONCERN (Narrative) (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Accumulated deficit	$ 61,792,864	$ 59,653,661

FINANCIAL INSTRUMENTS AND RIS22

FINANCIAL INSTRUMENTS AND RISKS (Narrative) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Cash	$ 677,985	$ 1,221,080	$ 396,878	$ 949,806
Accounts payable and accrued liabilities	171,256		135,354
Convertible Note	$ 2,000,000	$ 0
Debt Instrument, Interest Rate, Stated Percentage	7.00%
Chilean Pesos [Member]
Net monetary liabilities	$ 9,454		44,693
Chinese Yuan [Member]
Net monetary assets	77,204		152,095
Hong Kong Dollar [Member]
Net monetary assets	$ 1,100		$ 7,678
Chilean Peso, Chinese Yuan and Hong Kong Dollar [Member]
Change in exchange rate	10.00%

MINERAL PROPERTIES (Narrative)

MINERAL PROPERTIES (Narrative) (Details) - USD ($)	Sep. 05, 2003	Mar. 17, 2000
Purchase of mining exploration, total amount		$ 1,000,000
Purchase of mining exploration, cash paid		$ 350,000
Subsidiaries [Member]
Acquired interest rate percentage	100.00%
Number of exploration mining concessions	9
Purchase consideration including legal fee	$ 651,950

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Convertible Note			$ 2,000,000	$ 0
Debt Instrument, Interest Rate, Stated Percentage	7.00%		7.00%
Debt Instrument, Convertible, Conversion Price	$ 0.12		$ 0.12
Preferred shares issued (in shares)			100
Proceeds from Conversion of Convertible Securities			$ 8,000,000
Preferred Stock, Par Value	$ 0.001		$ 0.001		$ 0.001
Number of warrants, Issued			8,333,333		13,875,000
Warrants Issued During Period, Per Warrant Amount			$ 0.30
Proceeds from Issuance of Convertible Preferred Stock			$ 12
Convertible Debt	$ 748,591		748,591
Derivative Liability	845,809		845,809
Warrants Liability	405,600		405,600
Gain on Derivative Liability	122,087	$ 0	169,558	0
Derivative Liability	676,251		676,251		$ 0
Interest accretion on convertible note			265,576	$ 0
Convertible Note	$ 1,014,167		$ 1,014,167		$ 0
Maximum [Member]
Debt Instrument, Interest Rate, Stated Percentage	25.00%		25.00%
Liability [Member]
Volitility			145.14%
Expected term			2 years
Discount rate			1.13%
Dividend yield			0.00%
Warrant [Member]
Volitility			131.93%
Expected term			3 years
Discount rate			1.13%
Dividend yield			0.00%
Derivative Liability [Member]
Volitility			161.54%
Expected term			1 year 5 months 16 days
Discount rate			1.13%
Dividend yield			0.00%
Series A Preferred Stock
Debt Instrument, Convertible, Conversion Price	$ 0.12		$ 0.12
Preferred shares issued (in shares)			100
Preferred Stock, Par Value	$ 0.001		$ 0.001
7% Senior Convertible Promissory Note [Member]
Convertible Note			$ 2,000,000
Debt Instrument, Interest Rate, Stated Percentage	7.00%		7.00%

CAPITAL STOCK (Narrative) (Deta

CAPITAL STOCK (Narrative) (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Share-Based Compensation [Member]
Stock-based compensation	$ 129,007		$ 451,369
Common Stock, Shares Authorized	500,000,000		500,000,000
Preferred Stock, Shares Authorized	100,000,000		100,000,000
Preferred stock, shares issued	100		0
Preferred shares issued (in shares)	100
Preferred stock designated, par value	$ 0.001		$ 0.001
Exercise Price	$ 0.45		$ 0.45	$ 0.55
Stock-based compensation	$ 129,007	$ 451,369
Warrants, exercise price	$ 0.30
Shares to be issued upon exercise of warrants	8,333,333		13,875,000
Weighted average remaining contractual life	1 year 1 month 13 days		1 year 11 months 8 days
Intrinsic value	$ 0		$ 0
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized	19,000,100
Preferred shares issued (in shares)	100
Preferred stock designated, par value	$ 0.001
Preferred stock convertible into common shares	$ 0.12
Stock Option [Member]
Percentage of outstanding shares at the end of each year, pool	1.00%
2005 Plan [Member]
Stock option authorized to grant	3,140,000
2015 Plan [Member]
Common Stock, Shares Authorized	5,661,944
Stock option authorized to grant	4,641,040
Increase in stock option authorized to grant as a percentage of total outstanding shares at year-end	10.00%
Shares reduction amount	3,949,500

LOSS PER SHARE (Narrative) (Det

LOSS PER SHARE (Narrative) (Details)	9 Months Ended
	Sep. 30, 2016shares
Warrant [Member]
Potentially dilutive securities not included in diluted weighted average shares outstanding	38,647,619
Stock Option [Member]
Potentially dilutive securities not included in diluted weighted average shares outstanding	675,000

COMMITMENTS (Narrative) (Detail

COMMITMENTS (Narrative) (Details) - USD ($)	Sep. 30, 2016	Sep. 01, 2016	Jun. 30, 2016	Jul. 01, 2014
July 1, 2014 Lease Agreement [Member]
Contractual Obligation	$ 375,440			$ 584,018
Deposits Assets			$ 14,000
September 1, 2016 Lease Agreement [Member]
Contractual Obligation	$ 52,430	$ 54,710

Schedule of Summary of Fair Val

Schedule of Summary of Fair Value Measurement by Level for Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Cash	$ 677,985	$ 396,878
Derivative Instruments	676,251	0
Level 1 [Member]
Cash	677,985	396,878
Derivative Instruments	0
Level 2 [Member]
Cash	0	0
Derivative Instruments	676,251
Level 3 [Member]
Cash	0	$ 0
Derivative Instruments	$ 0

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Cost	$ 610,924	$ 715,395
Accumulated Amortization	442,418	428,979
Net	168,506	286,416
Vehicles [Member]
Cost	129,439	129,439
Accumulated Amortization	128,790	117,590
Net	649	11,849
Office furniture [Member]
Cost	69,621	175,048
Accumulated Amortization	63,608	81,779
Net	6,013	93,269
Office equipment [Member]
Cost	33,574	33,574
Accumulated Amortization	26,358	22,818
Net	7,216	10,756
Computer equipment [Member]
Cost	7,553	7,553
Accumulated Amortization	7,553	7,553
Net	0	0
Computer software [Member]
Cost	69,175	68,995
Accumulated Amortization	68,995	68,995
Net	180	0
Field equipment [Member]
Cost	154,926	154,150
Accumulated Amortization	147,114	130,244
Net	7,812	23,906
Land held for future development
Cost	146,636	146,636
Accumulated Amortization	0	0
Net	$ 146,636	$ 146,636

Exploration Expenditures Incurr

Exploration Expenditures Incurred (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Exploration expenditures	$ 643,817	$ 786,604
Assaying [Member]
Exploration expenditures	690	0
Concession fees [Member]
Exploration expenditures	87,269	76,612
Environmental [Member]
Exploration expenditures	0	241,356
Equipment rental [Member]
Exploration expenditures	6,523	9,409
Geological consulting fees [Member]
Exploration expenditures	98,871	35,790
Site costs [Member]
Exploration expenditures	444,042	402,889
Transportation [Member]
Exploration expenditures	$ 6,422	$ 20,548

Service-Based Stock Option Acti

Service-Based Stock Option Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Number of Shares
Outstanding - beginning of year	1,375,000	1,225,000
Number of Shares, Granted	0	300,000
Number of Shares, Expired	(700,000)	(150,000)
Number of Shares, Outstanding - end of period	675,000	1,375,000
Weighted Average Exercise Price
Weighted Average Exercise Price, Outstanding - beginning of period	$ 0.45	$ 0.55
Weighted Average Exercise Price, Granted	0	0.45
Weighted Average Exercise Price, Expired	0.45	1.30
Weighted Average Exercise Price, Outstanding - end of period	$ 0.45	$ 0.45

Stock Options Outstanding (Deta

Stock Options Outstanding (Details)	Sep. 30, 2016$ / sharesshares
Exercise Price | $ / shares	$ 0.45
Stock option, Outstanding | shares	675,000
October 2, 2017
Exercise Price | $ / shares	$ 0.45
Stock option, Outstanding | shares	375,000
December 31, 2017
Exercise Price | $ / shares	$ 0.45
Stock option, Outstanding | shares	300,000

Stock Purchase Warrant Activity

Stock Purchase Warrant Activity (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2016$ / unitshares	Dec. 31, 2015$ / shares$ / unitshares	Dec. 31, 2014$ / shares
Number of warrants
Number of warrants, Outstanding at the Beginning of the Period	35,362,585	21,487,585
Number of warrants, Outstanding Weighted Average Exercise Price | $ / shares		$ 0.34	$ 0.55
Shares to be issued upon exercise of warrants	8,333,333	13,875,000
Number of warrants, Expired	(5,048,299)	0
Number of warrants, Outstanding End of the Period	38,647,619	35,362,585
Weighted Average Exercise Price
Weighted Average Exercise Price, Issued | $ / unit	0.30	0.35
Weighted Average Exercise Price, Expired | $ / unit	0.30
Weighted Average Exercise Price, Outstanding at End of Period | $ / unit	0.34	0.34

Share Purchase Warrants Outstan

Share Purchase Warrants Outstanding (Details) - $ / shares	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Number of warrants, Outstanding	38,647,619	35,362,585
Expiry Date, April 30, 2016 [Member]
Warrant, exercise price per warrant	$ 0.30
Number of warrants, Outstanding	0	1,770,328
Expiry Date, April 30, 2016 [Member]
Warrant, exercise price per warrant	$ 0.30
Number of warrants, Outstanding	0	910,534
Expiry Date, April 30, 2016 [Member]
Warrant, exercise price per warrant	$ 0.30
Number of warrants, Outstanding	0	2,367,437
Expiry Date, December 31, 2017 [Member]
Warrant, exercise price per warrant	$ 0.65
Number of warrants, Outstanding	600,000	600,000
Expiry Date, December 31, 2017 [Member]
Warrant, exercise price per warrant	$ 0.30
Number of warrants, Outstanding	5,714,286	5,714,286
Expiry Date, December 31, 2018 [Member]
Warrant, exercise price per warrant	$ 0.35
Number of warrants, Outstanding	4,500,000	4,500,000
Expiry Date, December 31, 2018 [Member]
Warrant, exercise price per warrant	$ 0.35
Number of warrants, Outstanding	5,625,000	5,625,000
Expiry Date, December 31, 2018 [Member]
Warrant, exercise price per warrant	$ 0.35
Number of warrants, Outstanding	13,875,000	13,875,000
Expiry Date, March 16, 2019 [Member]
Warrant, exercise price per warrant	$ 0.30
Number of warrants, Outstanding	8,333,333	0