Panex Resources (DBGF) 10-K 31 Oct 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Aug. 31, 2016	Oct. 31, 2016	Feb. 29, 2016
Document And Entity Information
Entity Registrant Name	Panex Resources Inc.
Entity Central Index Key	1,345,756
Document Type	10-K
Document Period End Date	Aug. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 1,115,636
Entity Common Stock, Shares Outstanding		1,115,636,507
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Aug. 31, 2016	Aug. 31, 2015
Current Assets
Investment	$ 115,830	$ 113,653
Cash	517,172	553,267
Total Current Assets	633,002	666,920
Total Assets	633,002	666,920
Current Liabilities
Accounts payable and accrued expenses	202,234	45,246
Accounts payable and accrued expenses related parties (Notes 4)	7,500	30,000
Total Liabilities (all current)	209,734	75,246
Stockholder's Equity
Common stock Authorized: 2,000,000,000 common shares with par value of $0.001 each Issued and outstanding: 1,115,636,507 (August 31, 2015: 1,125,636,507) common shares	1,115,636	1,125,636
Additional paid-in capital	13,291,725	13,286,725
Donated capital	77,627	77,627
Accumulated deficit during the exploration stage	(14,061,720)	(13,898,314)
Stockholder equity	423,268	591,674
Total liabilities and stockholders' equity	$ 633,002	$ 666,920

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Aug. 31, 2016	Aug. 31, 2015
Balance Sheets Parenthetical
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	1,115,636,507	1,125,636,507
Common stock, shares outstanding	1,115,636,507	1,125,636,507

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Statements Of Operations
Listing and filing fees	$ 2,383	$ 6,085
Investor relation expense		31,686
Professional fees	142,864	102,917
Travel costs		13,734
General and administrative	320,416	241,640
Foreign currency transaction gain	(5,427)	(25,644)
Mineral property and exploration costs	221,602	2,384
Total operating expenses	681,838	372,802
Other income (expense)
Gain (Loss) on sale of investment and investment revaluation	518,432	(131,286)
Total other income (expenses)	518,432	(131,286)
Net Income (Loss)	$ (163,406)	$ (504,088)
Earnings (Loss) Per Share - Basic and Diluted
Weighted average shares outstanding	1,116,294,041	1,380,893,375

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Cash Flows From Operating Activities
(Net loss) income	$ (163,406)	$ (504,088)
Adjustments to reconcile net (loss) Income to cash used in operating activities
Foreign currency transaction gain	(5,427)	(25,644)
Loss (Gain) on sale of investment and investment revaluation	(518,432)	131,286
Increase (decrease) in accounts payable and accrued liabilities	156,986	2,323
Increase (decrease) in amounts due to related parties	(22,500)	(15,523)
Net Cash Used in Operating Activities	(552,779)	(411,646)
Cash Flows From Investing Activities
Cash received from sale of investment	885,507	1,228,728
Cash used for purchase of investment	(369,250)	(122,080)
Net Cash Used in Investing Activities	516,257	1,106,648
Cash Flows From Financing Activities
Loan from related parties		16,400
Common shares repurchased for cash	(5,000)	(189,905)
Net Cash (Used in) Provided by Financing Activities	(5,000)	(224,905)
Effect of Exchange Rates on Cash	5,427	80,646
Increase (decrease) in Cash	(36,095)	550,743
Cash at Beginning of Period	553,267	2,524
Cash at End of Period	$ 517,172	$ 553,267

STATEMENTS OF STOCKHOLDER'S EQU

STATEMENTS OF STOCKHOLDER'S EQUITY (DEFICIENCY) - USD ($)	Common Stock	Additional Paid-In Capital	Advances for Stock Subscriptions	Donated Capital	Accumulated (deficit)	Total
Beginning Balance, Amount at Aug. 31, 2014	$ 1,416,136	$ 13,131,129		$ 77,627	$ (13,394,226)	$ 1,230,666
Beginning Balance, Shares at Aug. 31, 2014	1,416,136,507
Net loss					(504,088)	(504,088)
Common stock issued for settlement, Amount	$ 27,500	27,500				55,000
Common stock issued for settlement, Shares	27,500,000
Common stock repurchased for cash, Amount	$ (318,000)	128,096				(189,904)
Common stock repurchased for cash, Shares	(318,000,000)
Ending Balance, Amount at Aug. 31, 2015	$ 1,125,636	13,286,725		77,627	(13,898,314)	591,674
Ending Balance, Shares at Aug. 31, 2015	1,125,636,507
Net loss					(163,406)	(163,406)
Common stock repurchased for cash, Amount	$ (10,000)	5,000				(5,000)
Common stock repurchased for cash, Shares	(10,000,000)
Ending Balance, Amount at Aug. 31, 2016	$ 1,115,636	$ 13,291,725		$ 77,627	$ (14,061,720)	$ 423,268
Ending Balance, Shares at Aug. 31, 2016	1,115,636,507

Organization, Nature of Busines

Organization, Nature of Business, Going Concern and Management's Plans	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Note 1. Organization, Nature of Business, Going Concern and Management's Plans	Panex Resources Inc. (‘Panex” or the “Company”) was incorporated in the State of Nevada on May 28, 2004. The Company is considered to be an Exploration Stage Company. The Company’s principal business is the acquisition and exploration of mineral resources. Going concern and management’s plans: The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. Since its inception on May 28, 2004, the Company has not generated revenue and has incurred net losses. The Company generated a loss of $163,406 for the year ended August 31, 2016, and a deficit accumulated during the exploration stage of $14,061,720 for the period May 28, 2004 (inception) through August 31, 2016. Accordingly, it has not generated cash flow from operations and has primarily relied upon advances from shareholders and proceeds from equity financings to fund its operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company on July 15, 2015, through the wholly owned subsidiary corporation, Panex Resources WA Pty Ltd. (ACN 607 016 491), entered into an Asset Purchase Agreement with Lazaraus Resources Pty Ltd. The Company purchased Lazaraus Resources’ assets, rights and interests to the Exploration License E80/4675 located approximately 85km SW of Halls Creek in the Kimberley Mineral Field of Western Australia and all data reports and technical information related to E80/4675 including copies of all regulatory reporting; metadata files and databases. The purchase price was approximately US$2,200.00. There have been no exploration activities related to this project. The Company owns no mineral properties and only owns interests in exploration licenses. The Company is currently performing a due diligence of an advanced gold exploration project at Matala, in South Kivu Province, Democratic Republic of Congo. Under this agreement, Panex may acquire up to a 90% direct interest in a mining project located in the Democratic Republic of Congo. The mining interest relates to gold and diamonds. Under the agreement Panex may earn an initial 51% interest in the Tenements by incurring: 1. expenditures totaling US$500,000 (which was started from September 2016 and continues to date); and 2. expenditure totaling a further US$500,000 (Phase 2 Expenditure) during the period of 12 months after the Phase 1 Period (Phase 2 Period). Panex may earn a further 19% interest to take its then aggregate interest to 70% by incurring a further US$3,000,000 in expenditure on the Tenements (Phase 3 Expenditure) during the period ending on the date that is 2 years after Panex has earned the Initial Interest (Phase 3 Period). Panex can earn a further 10% interest (Phase 4 Interest) to take its then aggregate direct interest to 80% by incurring a further US$10,000,000 in expenditure on the Tenements (Phase 4 Expenditure) during the period ending on the date that is 3 years after Panex has earned the Phase 3 Interest (Phase 4 Period). Upon completion of a Definitive Feasiblity Study (“DFS”), Panex shall also have the option to acquire up to a further 10% interest to take its then aggregate interest to 90% by payment to the third party of an amount determined through an independent valuation of the assets. Panex is to fund all exploration to completion of a DFS. At any time after the Phase 1 Period, Panex may terminate the agreement, and Panex shall have no further obligation to make any expenditure in respect of the Tenements. A vendor consideration of 125m shares in Panex and US$20,000 cash payment is due on closing of the transaction. Certain mineral property interests are presently being considered, however it is too early to determine whether they may be considered appropriate for acquisition. During the next 12 months, management’s objective is to recapitalize Panex, continue to raise new capital and to seek new investment opportunities in the mineral sector. Management believes that its worldwide industry contacts will make it possible to identify and assess new projects for acquisition purposes. Panex is seeking a viable business opportunity through acquisition, merger or other suitable business combination method, with a focus on undervalued mineral properties for eventual acquisition. Panex intends to concentrate its acquisition efforts on mineral properties or mineral exploration businesses that management believes to be undervalued or that management believes may realize a substantial benefit from being publicly owned. Panex will continue to identify and assess undervalued mineral properties when capital raisings are completed. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts or classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Note 2. Summary of Significant Accounting Policies	a. Basis of Preparation These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States (US GAAP). The Company’s fiscal year-end is August 31. b. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. c. Basic and Diluted Net Income (Loss) Per Share Earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the reporting period including common stock issued effective the date committed. Common stock issuable is considered outstanding as of the original approval date for the purposes of earnings per share computations. Diluted earnings (loss) per common share is computed by dividing net earnings (loss) by the sum of (a) the basic weighted average number of shares of common stock outstanding during the period and (b) additional shares that would have been issued and potentially dilutive securities. During the reporting periods the diluted earnings (loss) per share was equivalent to the basic earnings (loss) per share because all potentially dilutive securities were anti-dilutive due to the net losses incurred. Potentially dilutive securities consist of stock options outstanding at the end of the reporting period. d. Cash Cash includes deposits in banks, which are unrestricted as to withdrawal or use. e. Investments in Securities The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. At August 31, 2016, investments consist of 1,000,000 shares in NSS Resources Inc, a Canadian listed entity which were acquired in May 2015 and are accounted for as trading securities. f. Mineral Property and Exploration Costs The Company has been in the exploration stage since its formation on May 28, 2004 and has not realized any revenues from its planned operations. It has been primarily engaged in the acquisition and exploration of mining properties. Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations. g. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The Company uses a fair value hierarchy that has three levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value. Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable. As of August 31, 2016, the Company’s investments are classified as Level 1 and there are no level 2 or level 3 assets or liabilities. Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment. Financial instruments, which include cash and accounts payable, were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments. The fair value of amounts due to related parties are not practical to estimate, due to the related party nature of the underlying transactions. The financial risk to the Company’s operations arises from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk. h. Income Taxes The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases, as well as net operating losses. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets or liabilities of a change in tax rates is recognized in the period in which the tax change occurs. A valuation allowance is provided to reduce the deferred tax assets to a level, that more likely than not, will be realized. Management does not believe that the Company has any unrecognized tax positions. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. i. Stock-Based Compensation The Company accounts for share-based payments under the fair value method of accounting for stock-based compensation consistent with US GAAP. Under the fair value method, stock-based compensation cost is measured at the grant date based on the fair value of the award using the Black-Sholes option pricing model and is recognized to expense on a straight-line basis over the requisite service period, which is generally the vesting period. Where upon grant the options vest immediately the stock-based costs are expensed immediately. During the current year there are no options outstanding. j. Foreign Currency Translation and Transactions The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated into the United States dollar using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income. k. Concentration of Credit Risk The Company’s financial instruments that are exposed to concentration of credit risk consist of cash. The Company’s cash is in demand deposit accounts placed with federally insured financial institutions in Canada. l. Recent Accounting Pronouncements In May 2014, FASB issued ASU No. 2014-09 “Revenue from Contracts from Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early adoption not permitted. The Company has no revenue at this time and is not expecting any material impact on its operations and financial statements. In August 2014, FASB issued ASU 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. The amendments in ASU 2014-15 provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The new requirements are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. The Company assessed that they are not expecting any material impact on its financial statement disclosures. In April 2015, FASB issued ASU No. 2015-03 “Update No. 2015-03-Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. To simplify presentation of debt issuance costs, the amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. The amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in ASU 2015-03 is permitted for financial statements that have not been previously issued. The Company assessed that there is no impact to the financial statements on this update. In September 2015, FASB issued ASU No.2015-16 “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. The amendments in ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not been issued. The Company assessed that there is no impact to the financial statements on this update. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in ASU 2015-17 eliminate the current requirement for entities to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is currently evaluating the new standard. The adoption of this standard will not have a significant impact on the Company's financial statements as its net deferred tax assets are fully allowed for. Management has evaluated other recently issued accounting pronouncements to determine their applicability and does not believe that any of these pronouncements will have a significant impact on the Company’s financial statements.

Stock Options

Stock Options	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Note 3. Stock Options	The Company has no stock options outstanding.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Note 4. Related Party Transactions	a. The Company incurred $62,691 (including $nil of management fees) respectively in total for management, exploration and contractor expenses during the fiscal year ended August 31, 2016 (August 31, 2015: $185,322 (including $99,141 of management fees). This amount is a combination of exploration contracting services paid to the CEO, Non Executive Director and former CFO (up to his resignation) of the Company. b. During May 2015 a consulting agreement was entered into with Mark Gasson and Ross Doyle for up to USD15,000 and USD10,000 per month. Amounts will be charged on a need basis and it is not expected the full amount will be incurred. At end of year there was an accrued liability of $7,500 payable to Mark Gasson. c. In July 2014, Coresco AG (a company in which the CEO and a former CFO has a beneficial interest) loaned the Company $44,000, with no specified interest or due date. The parties may agree to settle the borrowing through repayment or issuance of equity. In August 2014, the Company repaid $9,000 of the loan. In September and October 2014 a further $15,000 and $1,400 respectively was loaned to the Company. The full loan was repaid in October 2014.

Loans and Borrowings

Loans and Borrowings	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Note 5. Loans and Borrowings	In July 2014, Coresco loaned the Company $44,000, with no specified interest or due date. The parties may agree to settle the borrowing through repayment or issuance of equity. In August 2014, the Company repaid $9,000 of the loan. In September and October 2014 a further $15,000 and $1,400 respectively was loaned to the Company. The full loan was repaid in October 2014. There is no loan subsequent to this.

Material Contingencies and Comm

Material Contingencies and Commitments	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Note 6. Material Contingencies and Commitments	Panex has no material contingencies or long-term commitments. While Panex has raised capital to meet its working capital and financing needs in the past, additional financing is required in order to fully complete its plan of operation and launch its business operations. Panex is seeking financing in the form of equity in order to provide the necessary working capital. Panex currently has no commitments for financing. There are no assurances Panex will be completely successful in raising the funds required.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Note 7. Stockholders' Equity	Common Stock and Financing Activities During September 2015, the Company entered into some share repurchase agreements for a total of 10,000,000 shares for USD$5,000. During August 2015, the Company entered into some share repurchase agreements for a total of 318,000,000 shares for USD$189,904. During June 2015, the Company entered into debt settlement agreements with creditors in consideration for the issuance of the Company’s common stock, par value $0.001, at a per share price of $0.001 per share. As a result, the Company extinguished certain liabilities with creditors via debt settlement agreements for a total of $55,000, for a total of 27,500,000 shares at a price of $0.001 per share.

Income Taxes

Income Taxes	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Note 8. Income Taxes	The components of the Company’s net deferred tax asset as of August 31, 2016 and 2015, rate and the valuation allowance are as follows: 2016 2015 Net operating losses 7,662,163 7,576,471 Loan loss reserves 6,100,000 6,100,000 13,762,163 13,676,559 Statutory tax rate 35 % 35 % Deferred tax asset 4,816,757 4,786,796 Valuation allowance (4,816,757 ) (4,786,796 ) Net deferred tax asset - - The Company has net operating loss carry-forwards for tax purposes of approximately $7,662,163, which begin expiring in 2031. The utilization of the net operating loss carry-forwards cannot be assured. Deferred income tax reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company provided a valuation allowance of 100% of its net deferred tax asset due to the uncertainty of generating future profits that would allow for the realization of such deferred tax assets.

Subsequent Events

Subsequent Events	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Note 9. Subsequent Events	Continued due diligence work is being performed at the Matala gold site and no decision has yet to be made. Otherwise than as disclosed above and within the financial statements there are no other subsequent events.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Aug. 31, 2016
Summary Of Significant Accounting Policies Policies
Basis of Preparation	These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States (US GAAP). The Company’s fiscal year-end is August 31.
Use of Estimates	The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Basic and Diluted Net Income (Loss) Per Share	Earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the reporting period including common stock issued effective the date committed. Common stock issuable is considered outstanding as of the original approval date for the purposes of earnings per share computations. Diluted earnings (loss) per common share is computed by dividing net earnings (loss) by the sum of (a) the basic weighted average number of shares of common stock outstanding during the period and (b) additional shares that would have been issued and potentially dilutive securities. During the reporting periods the diluted earnings (loss) per share was equivalent to the basic earnings (loss) per share because all potentially dilutive securities were anti-dilutive due to the net losses incurred. Potentially dilutive securities consist of stock options outstanding at the end of the reporting period.
Cash	Cash includes deposits in banks, which are unrestricted as to withdrawal or use.
Investments in Securities	The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. At August 31, 2016, investments consist of 1,000,000 shares in NSS Resources Inc, a Canadian listed entity which were acquired in May 2015 and are accounted for as trading securities.
Mineral Property and Exploration Costs	The Company has been in the exploration stage since its formation on May 28, 2004 and has not realized any revenues from its planned operations. It has been primarily engaged in the acquisition and exploration of mining properties. Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations.
Fair Value Measurements	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The Company uses a fair value hierarchy that has three levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value. Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable. As of August 31, 2016, the Company’s investments are classified as Level 1 and there are no level 2 or level 3 assets or liabilities. Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment. Financial instruments, which include cash and accounts payable, were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments. The fair value of amounts due to related parties are not practical to estimate, due to the related party nature of the underlying transactions. The financial risk to the Company’s operations arises from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.
Income Taxes	The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases, as well as net operating losses. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets or liabilities of a change in tax rates is recognized in the period in which the tax change occurs. A valuation allowance is provided to reduce the deferred tax assets to a level, that more likely than not, will be realized. Management does not believe that the Company has any unrecognized tax positions. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense.
Stock-Based Compensation	The Company accounts for share-based payments under the fair value method of accounting for stock-based compensation consistent with US GAAP. Under the fair value method, stock-based compensation cost is measured at the grant date based on the fair value of the award using the Black-Sholes option pricing model and is recognized to expense on a straight-line basis over the requisite service period, which is generally the vesting period. Where upon grant the options vest immediately the stock-based costs are expensed immediately. During the current year there are no options outstanding.
Foreign Currency Translation and Transactions	The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated into the United States dollar using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income.
Concentration of Credit Risk	The Company’s financial instruments that are exposed to concentration of credit risk consist of cash. The Company’s cash is in demand deposit accounts placed with federally insured financial institutions in Canada.
Recent Accounting Pronouncements	In May 2014, FASB issued ASU No. 2014-09 “Revenue from Contracts from Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early adoption not permitted. The Company has no revenue at this time and is not expecting any material impact on its operations and financial statements. In August 2014, FASB issued ASU 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. The amendments in ASU 2014-15 provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The new requirements are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. The Company assessed that they are not expecting any material impact on its financial statement disclosures. In April 2015, FASB issued ASU No. 2015-03 “Update No. 2015-03-Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. To simplify presentation of debt issuance costs, the amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. The amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in ASU 2015-03 is permitted for financial statements that have not been previously issued. The Company assessed that there is no impact to the financial statements on this update. In September 2015, FASB issued ASU No.2015-16 “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. The amendments in ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not been issued. The Company assessed that there is no impact to the financial statements on this update. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in ASU 2015-17 eliminate the current requirement for entities to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is currently evaluating the new standard. The adoption of this standard will not have a significant impact on the Company's financial statements as its net deferred tax assets are fully allowed for. Management has evaluated other recently issued accounting pronouncements to determine their applicability and does not believe that any of these pronouncements will have a significant impact on the Company’s financial statements.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Aug. 31, 2016
Income Taxes Tables
Deferred tax asset	2016 2015 Net operating losses 7,662,163 7,576,471 Loan loss reserves 6,100,000 6,100,000 13,762,163 13,676,559 Statutory tax rate 35 % 35 % Deferred tax asset 4,816,757 4,786,796 Valuation allowance (4,816,757 ) (4,786,796 ) Net deferred tax asset - -

Organization, Nature of Busin18

Organization, Nature of Business, Going Concern and Management's Plans (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Organization Nature Of Business Going Concern And Managements Plans Details Narrative
Net income	$ (163,406)	$ (504,088)
Accumulated deficit during the exploration stage	$ (14,061,720)	$ (13,898,314)

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Details Narrative)	Aug. 31, 2016shares
NSS Resources Inc [Member]
Marketable securities, owned	100,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Related Party Transactions Details Narrative
Management fees		$ 99,141
Accrued liability	$ 62,691	$ 185,322

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Income Taxes Details
Net operating losses	$ 7,662,163	$ 7,576,471
Loan loss reserves	6,100,000	6,100,000
Total	$ 13,762,163	$ 13,676,559
Statutory tax rate	35.00%	35.00%
Deferred tax asset	$ 4,816,757	$ 4,786,796
Valuation allowance	(4,816,757)	(4,786,796)
Net deferred tax asset