Indigenous Roots (IRCC) 10-K 23 Oct 15 2012 FY Annual report Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Aug. 31, 2012USD ($)shares
Document and Entity Information:
Entity Registrant Name	AMERICAN PARAMOUNT GOLD CORP.
Entity Central Index Key	1,373,690
Document Type	10-K
Document Period End Date	Aug. 31, 2012
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Entity Filer Category	Smaller Reporting Company
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	No
Public Float | $	$ 96,000
Entity Common Stock, Shares Outstanding	1,612,500
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,012

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Aug. 31, 2012	Aug. 31, 2011
CURRENT ASSETS
Cash		$ 71,552
Excise tax receivable	$ 977	35,176
Prepaids and deposits		39,629
Total current assets	$ 977	146,357
Mining claims		250,000
Website		14,618
Equipment		1,075
Total Assets	$ 977	412,050
CURRENT LIABILITIES
Bank overdraft	5,529	21,882
Accounts payable and accrued liabilities	429,131	122,740
Convertible loans payable - related party	975,652	779,877
Total current liabilities	1,410,312	924,499
Total Liabilities	1,410,312	924,499
STOCKHOLDERS' DEFICIT
Common stock 3,750,000 authorized shares, par value $0.001 1,612,500 shares issued and outstanding as at August 31, 2012 and 2011	1,613	1,613
Additional paid-in capital	3,291,370	3,291,370
Stock payable	476,191	476,191
Deficit	(5,178,509)	(4,281,623)
Total Stockholders' Deficit	(1,409,335)	(512,449)
Total Liabilities and Stockholders' Deficit	$ 977	$ 412,050

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Aug. 31, 2012	Aug. 31, 2011
Balance Sheets
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	3,750,000	3,750,000
Common Stock, shares issued	1,612,500	1,612,500
Common Stock, shares outstanding	1,612,500	1,612,500

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Operating expenses
Consulting	$ 44,953	$ 2,774,909
Exploration	432,281	216,344
General and administrative	$ 47,473	174,362
Rent - related party		36,153
Management fees		162,389
Professional fees	$ 11,544	59,042
Total operating expenses	536,251	3,423,199
Net loss from operations	(536,251)	$ (3,423,199)
OTHER EXPENSES
Impairment of mining claims	250,000
Impairment of capital assets	15,693
Amortization of debt discount	1,719	$ 9,072
Interest	93,223	68,505
Total other expenses	360,635	77,577
Net loss	$ (896,886)	$ (3,500,776)
BASIC EARNINGS PER COMMON SHARE	$ (0.56)	$ (2.18)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC	1,612,500	1,604,281

STATEMENT OF STOCKHOLDERS_ EQUI

STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($)	Common Stock	Additional Paid-In Capital	Stock Payable	Deficit Accumulated	Total
Beginning Balance, Shares at Aug. 31, 2010	1,600,000
Beginning Balance, Amount at Aug. 31, 2010	$ 1,600	$ 620,433		$ (780,847)	$ (158,814)
Issued for cash at $0.10 per share, net of issuance cost			$ 476,191		476,191
Issued to settle debt, Shares	12,500
Issued to settle debt, Amount	$ 13	67,487			67,500
Share based compensation		2,603,450			2,603,450
Net loss				$ (3,500,776)	(3,500,776)
Ending Balance, Shares at Aug. 31, 2011	1,612,500
Ending Balance, Amount at Aug. 31, 2011	$ 1,613	$ 3,291,370	$ 476,191	(4,281,623)	(512,449)
Net loss				(896,886)	(896,886)
Ending Balance, Shares at Aug. 31, 2012	1,612,500
Ending Balance, Amount at Aug. 31, 2012	$ 1,613	$ 3,291,370	$ 476,191	$ (5,178,509)	$ (1,409,335)

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Statements Of Cash Flows
Net loss	$ (896,886)	$ (3,500,776)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment of mining claims	250,000
Impairment of capital assets	$ 15,693
Amortization of website		$ 8,771
Depreciation of equipment		215
Share based compensation		2,603,450
Shares issued to settle debt		67,500
Amortized debt discount	$ 1,719	9,072
Interest expense	93,223	68,505
Changes in operating assets and liabilities:
Decrease (increase) in excise tax receivable	34,199	(35,176)
Decrease in prepaids	39,629	31,094
Increase (decrease) in accounts payable and accrued liabilities	$ 213,168	(21,788)
Decrease in accounts payable - related parties		(1,000)
NET CASH FLOWS USED IN OPERATING ACTIVITIES	$ (249,255)	(770,133)
CASH FLOW FROM INVESTING ACTIVITIES
Mining claims		(125,000)
Equipment		(1,290)
NET CASH FLOWS USED IN INVESTING ACTIVITIES		(126,290)
CASH FLOW FROM FINANCING ACTIVITIES
Bank overdraft advances (repayments)	$ (16,353)	21,882
Convertible loan proceeds - related party	$ 194,056	530,663
Notes payable		(62,907)
Proceeds on sale of common stock		476,191
NET CASH FLOWS FROM FINANCING ACTIVITIES	$ 177,703	965,829
Net change in Cash	(71,552)	69,406
CASH, BEGINNING OF THE PERIOD	$ 71,552	2,146
CASH, END OF THE PERIOD		71,552
NON CASH FINANCING ACTIVITIES
Shares issued to settle accounts payable		$ 67,500

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	12 Months Ended
	Aug. 31, 2012
Notes to Financial Statements
Note 1 - ORGANIZATION AND NATURE OF BUSINESS	American Paramount Gold Corp., a Nevada corporation, (the "Company") was incorporated in the State of Nevada on July 20, 2006. The Company was formed to engage in the acquisition, exploration and development of natural resource properties.

BASIS OF PRESENTATION AND GOING

BASIS OF PRESENTATION AND GOING CONCERN	12 Months Ended
	Aug. 31, 2012
Notes to Financial Statements
Note 2 - BASIS OF PRESENTATION AND GOING CONCERN	Basis of presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of American and are presented in US dollars. Going concern The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As of August 31, 2012 and 2011, the Company has not achieved profitable operations and has incurred net losses of $896,886 and $3,500,776. At August 31, 2012 the Company had a deficit accumulated of $5,178,509. Continuation as a going concern is dependent upon the ability of the Company to obtain the necessary financing to meet obligations and pay its liabilities arising from normal business operations when they come due and ultimately upon its ability to achieve profitable operations. The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will be able to continue as a going concern. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Aug. 31, 2012
Notes to Financial Statements
Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Accounting estimates The preparation of these consolidated 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. Fair value of financial instruments The Company measures the fair value of financial assets and liabilities based on GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under GAAP, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is also established, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 – Inputs that are unobservable (for example cash flow modelling inputs based on assumptions). The Company’s financial instruments include cash, bank overdraft, accounts payable, and the convertible loan payable to a related party. The fair values of these financial instruments approximate their carrying values due to their short maturities. Income taxes Income tax expense is based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, 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 and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Long-lived assets In accordance with ASC 360, “Property, Plant, and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount exceeds fair value. Net loss per common share Basic net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive. These stock equivalents were not included as their effect was anti-dilutive for the periods presented. Stock-based compensation The Company applies the fair value method for accounting for stock option awards, whereby the Company recognizes a compensation expense for all stock options awarded to employees, officers and consultants based on the fair value of the options on the date of grant, which is determined using the Black-Scholes Option Pricing Model. The options are expensed over the vesting period of the options on a graded vesting basis. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration for other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services. Recent Accounting Pronouncements The following are recent FASB accounting pronouncements, which may have an impact on the Company's future consolidated financial statements: "Income Taxes (ASC Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exists" ("ASU 2013-11") was issued during July 2013. FASB issued guidance on how to present an unrecognized tax benefit. The guidance is effective for annual periods beginning after December 15, 2013 for public companies. The Company has adopted this pronouncement. The adoption of ASC Topic 740 did not have a significant impact on the Company's results of operations, financial performance or cash flows. In June 2014, the FASB issued ASU No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation.” In August 2014, the 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.”

MINERAL PROPERTIES

MINERAL PROPERTIES	12 Months Ended
	Aug. 31, 2012
Notes to Financial Statements
Note 4 - MINERAL PROPERTIES	On April 16, 2010, the Company entered into an option agreement to acquire a 100% long-term lease interest in mining claims situated in the Walker Lane Structural Belt in Nye County, Nevada (the "Cap Gold Project"). During the year ended August 31, 2012, the Company decided not to continue with its planned drill program at the Cap Gold Project, and as a result, wrote off capitalized costs of $250,000 to operations.

WEBSITE DEVELOPMENT AND EQUIPME

WEBSITE DEVELOPMENT AND EQUIPMENT	12 Months Ended
	Aug. 31, 2012
Notes to Financial Statements
Note 5 - WEBSITE DEVELOPMENT AND EQUIPMENT	As at August 31, 2011, the Company had $14,618 and $1,075 of capitalized website development costs and equipment, respectively. During the year ended August 31, 2012, the Company concluded that these costs were not recoverable, and recorded an impairment of $15,693 in the statement of operations.

CONVERTIBLE LOAN - RELATED PART

CONVERTIBLE LOAN - RELATED PARTY	12 Months Ended
	Aug. 31, 2012
Notes to Financial Statements
Note 6 - CONVERTIBLE LOAN - RELATED PARTY	On December 17, 2010, the Company entered into an agreement with Monaco Capital Inc., majority shareholder, for a principal amount of up to $5,000,000. The loan is unsecured and bears interest at the rate of 10% per annum. The Company may at any time during the term of the loan prepay any sum up to the full amount of the loan and accrued interest then outstanding at any time for an additional 10% of such amount. The loan (including accrued interest) is convertible into securities of the Company at a conversion price calculated as the mean volume weighted average price for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. At any time after the advancement date, if the Company has not paid the loan and accrued interest in full, the Lender may, by providing written notice to the Company, exercise its rights of conversion in respect of either a portion of the total outstanding amount of the loan as of that date into shares of the Company. As at August 31, 2012, Monaco Capital Inc. has advanced to the Company $975,652 (2011 - $779,877). As at August 31, 2012, $140,092 (2011 - $47,258) of accrued interest is owing and included in accounts payable and accrued liabilities. When the loan was received, an initial beneficial conversion feature was recorded of $16,833. As at August 31, 2012, $Nil (2011 - $1,719) was unamortized, and included in the convertible loan balance on the balance sheet. During the year ended August 31, 2012, $1,719 (2011 - $9,072) of the beneficial conversion feature was amortized into the statement of operations. Accrued interest as at August 31, 2012 is $140,092 (2011 - $46,869) and is included in accounts payable and accrued liabilities.

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	12 Months Ended
	Aug. 31, 2012
Notes to Financial Statements
Note 7 - STOCKHOLDERS' EQUITY (DEFICIT)	On March 28, 2011 and April 19, 2011, the Company collected net proceeds $476,191 for an aggregate of 5,000,000 common shares of the Company under the Private Placement Offering. As at August 31, 2012, these shares have not issued to the shareholders and are recorded as Stock Payable. On April 11, 2011, the Company issued 500,000 restricted common shares of the Company, valued at $67,500, in full satisfaction of debt owed to Investors Resource Group ("IRG") in the amount of $180,000 for consulting services.

STOCK OPTIONS

STOCK OPTIONS	12 Months Ended
	Aug. 31, 2012
Notes to Financial Statements
Note 8 - STOCK OPTIONS	The Company has adopted a stock option plan (the “2010 Plan”) which permits the Company to issue up to 6,500,000 shares of common stock to directors, officers, employees and consultants of the Company upon the exercise of stock options granted under the 2010 Plan. At the time of the grant of the option, the plan administrator shall designate the expiration date of the option, which date shall not be later than five (5) years from the date of grant. The vesting schedule for each option shall be specified by the plan administrator at the time of grant of the option. Effective September 29, 2010 the 2010 Plan provides for an exercise price to be established based on the fair market value of a common share of the Company being the average of the high and low sales prices (or bid and ask prices, if sales prices are not reported) for the common stock for the last trading day immediately preceding the date with respect to which fair market value is being determined, as reported for the principal trading market for the common stock. In April 2014, the company issued 1,000,000 stock options exercisable at $1.00 per option to the president, CEO, and CFO of the Company. On October 4, 2010 the exercise price of these options was amended to $0.68, with an expiry date of October 6, 2015. In connection with this modification the Company recorded stock-based compensation of $276,000. Also on October 6, 2010, an additional 4,400,000 stock options at an exercise price of $.68 per share. Of the aggregate 5,400,000 stock options, 400,000 options are exercisable until October 5, 2012 and 5,000,000 options are exercisable until October 6, 2015. These options all vest immediately. The fair value of the 5,400,000 options using the Black-Scholes Option Pricing Model with the following weighted average assumptions and including the $276,000 modification was recorded in the statement of operations as consulting expenses at a value of $2,480,800: Risk Free Interest Rate 0.38% and 1.16% respectively Expected life 730 days and 1825 days respectively Expected volatility 85.4 % Dividend per share $Nil On March 2, 2011, the Company cancelled 5,400,000 stock options previously granted on October 6, 2010. The Company concurrently reissued 5,150,000 stock options at an exercise price of $0.12 per share. Of the 5,150,000 stock options, 150,000 options are exercisable until March 2, 2013 and 5,000,000 options are exercisable until March 2, 2016. These stock options all vested immediately. In connection with this modification the Company recorded stock-based compensation of $122,650. A summary of the status of the Company’s stock option plan as of August 31, 2012 and 2011 and changes during the years is presented below: 2012 2011 Weighted Weighted Number of average Number of average Shares exercise price Shares exercise price # $ # $ Outstanding at beginning of year 5,150,000 0.12 1,000,000 1.00 Granted - - 10,550,000 0.41 Forfeited or cancelled - - (6,400,000 ) (0.73 ) Outstanding at end of year 5,150,000 0.12 5,150,000 0.12 Exercisable 5,150,000 0.12 5,150,000 0.12 The weighted average remaining life of the options outstanding as at August 31, 2012 is 3.42 years.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Aug. 31, 2012
Notes to Financial Statements
Note 9 - INCOME TAXES	The reported income taxes differ from the amounts obtained by applying statutory rates to the loss before income taxes as follows: August 31, 2012 August 31, 2011 Net loss $ (896,886 ) $ (3,500,776 ) Statutory tax rate 35.0 % 35.0 % Expected income tax recovery (314,000 ) (1,225,000 ) Permanent differences - 911,000 Other 34,000 - Change in valuation allowance 280,000 314,000 Income tax recovery $ - $ - The Company’s tax-effected future tax assets and liabilities are estimated as follows: August 31, 2012 August 31, 2011 Deferred tax assets Net operating loss carry forwards $ 591,000 $ 404,000 Capital assets 5,000 Mineral properties 88,000 - Total deferred tax assets 684,000 404,000 Less: Valuation allowance (684,000 ) (404,000 ) Net deferred income tax assets $ - $ - At August 31, 2012, the Company has a deferred tax asset. A full valuation allowance has been established; as management believes it is more likely that not that the deferred tax asset will not be realized. As at August 31, 2012, the Company has net operating loss carry forwards of approximately $1,690,000 (2011: $1,152,973) to reduce future federal and state taxable income. These losses expire between 2020 and 2032. The Company is not currently subject to any income tax examinations by any tax authority. Should a tax examination be opened, management does not anticipate any tax adjustments, if accepted, that would result in a material change to its financial position. Tax attributes are subject to review, and potential adjustment by tax authorities.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Aug. 31, 2012
Notes to Financial Statements
Note 10- RELATED PARTY TRANSACTIONS	During the year ended August 31, 2012, the Company incurred consulting fees of $35,453 and $9,500 to the President and a director of the Company, respectively. During the year ended August 31 2011, the company paid American Lithium Minerals Inc., whose President and Director is Hugh H. Aird (who was the President, CEO, and a director of the Company during the year ended August 31, 2011) CND$5,000 per month for office rent, supplies, and administrative support. At August 31, 2012, Monaco Capital Inc., a majority shareholder has advanced $975,652 (2011 - $781,597) with terms as discussed in Note 6.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Aug. 31, 2012
Summary Of Significant Accounting Policies Policies
Accounting estimates	The preparation of these consolidated 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.
Fair value of financial instruments	The Company measures the fair value of financial assets and liabilities based on GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under GAAP, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is also established, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 – Inputs that are unobservable (for example cash flow modelling inputs based on assumptions). The Company’s financial instruments include cash, bank overdraft, accounts payable, and the convertible loan payable to a related party. The fair values of these financial instruments approximate their carrying values due to their short maturities.
Income taxes	Income tax expense is based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, 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 and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Long-lived assets	In accordance with ASC 360, “Property, Plant, and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount exceeds fair value.
Net loss per common share	Basic net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive. These stock equivalents were not included as their effect was anti-dilutive for the periods presented.
Stock-based compensation	The Company applies the fair value method for accounting for stock option awards, whereby the Company recognizes a compensation expense for all stock options awarded to employees, officers and consultants based on the fair value of the options on the date of grant, which is determined using the Black-Scholes Option Pricing Model. The options are expensed over the vesting period of the options on a graded vesting basis. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration for other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services.
Recent Accounting Pronouncements	The following are recent FASB accounting pronouncements, which may have an impact on the Company's future consolidated financial statements: "Income Taxes (ASC Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exists" ("ASU 2013-11") was issued during July 2013. FASB issued guidance on how to present an unrecognized tax benefit. The guidance is effective for annual periods beginning after December 15, 2013 for public companies. The Company has adopted this pronouncement. The adoption of ASC Topic 740 did not have a significant impact on the Company's results of operations, financial performance or cash flows. In June 2014, the FASB issued ASU No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation.” In August 2014, the 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.”

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	12 Months Ended
	Aug. 31, 2012
Stock Options Tables
Valuation of stock options	Risk Free Interest Rate 0.38% and 1.16% respectively Expected life 730 days and 1825 days respectively Expected volatility 85.4 % Dividend per share $Nil
A summary of the status of the Company's stock option plan	2012 2011 Weighted Weighted Number of average Number of average Shares exercise price Shares exercise price # $ # $ Outstanding at beginning of year 5,150,000 0.12 1,000,000 1.00 Granted - - 10,550,000 0.41 Forfeited or cancelled - - (6,400,000 ) (0.73 ) Outstanding at end of year 5,150,000 0.12 5,150,000 0.12 Exercisable 5,150,000 0.12 5,150,000 0.12

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Aug. 31, 2012
Income Taxes Tables
Schedule of Components of Income Tax Expense	August 31, 2012 August 31, 2011 Net loss $ (896,886 ) $ (3,500,776 ) Statutory tax rate 35.0 % 35.0 % Expected income tax recovery (314,000 ) (1,225,000 ) Permanent differences - 911,000 Other 34,000 - Change in valuation allowance 280,000 314,000 Income tax recovery $ - $ -
Schedule of Deferred Tax Assets	August 31, 2012 August 31, 2011 Deferred tax assets Net operating loss carry forwards $ 591,000 $ 404,000 Capital assets 5,000 Mineral properties 88,000 - Total deferred tax assets 684,000 404,000 Less: Valuation allowance (684,000 ) (404,000 ) Net deferred income tax assets $ - $ -

BASIS OF PRESENTATION AND GOI20

BASIS OF PRESENTATION AND GOING CONCERN (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Basis Of Presentation And Going Concern Details Narrative
Net loss	$ (896,886)	$ (3,500,776)
Deficit accumulated	$ (5,178,509)	$ (4,281,623)

MINERAL PROPERTIES (Details Nar

MINERAL PROPERTIES (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Mineral Properties Details Narrative
Impairment of mining claims	$ 250,000

WEBSITE DEVELOPMENT AND EQUIP22

WEBSITE DEVELOPMENT AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Website Development And Equipment Details Narrative
Website development costs		$ 14,618
Equipment		$ 1,075
Impairment of capital assets	$ 15,693

CONVERTIBLE LOAN - RELATED PA23

CONVERTIBLE LOAN - RELATED PARTY (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Convertible Loan - Related Party Details Narrative
Convertible loans payable - related party	$ 975,652	$ 779,877
Owing interest included in accounts payable	140,092	47,258
Amortization of debt discount	$ 1,719	9,072
Unamortized debt discount		1,719
Accrued interest	$ 140,092	$ 46,869

STOCK OPTIONS (Details)

STOCK OPTIONS (Details)	12 Months Ended
	Aug. 31, 2012$ / shares
Expected volatility	85.40%
Dividend per share
Minimum [Member]
Risk Free Interest Rate	0.38%
Expected life	730 days
Maximum [Member]
Risk Free Interest Rate	1.16%
Expected life	1825 days

STOCK OPTIONS (Details 1)

STOCK OPTIONS (Details 1) - $ / shares	12 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Number of Shares
Outstanding at beginning of year	5,150,000	1,000,000
Granted		10,550,000
Forfeited or cancelled		(6,400,000)
Outstanding at end of year	5,150,000	5,150,000
Exercisable	5,150,000	5,150,000
Weighted average exercise price
Outstanding at beginning of year	$ 0.12	$ 1
Granted		0.41
Forfeited or cancelled		(0.73)
Outstanding at end of year	$ 0.12	0.12
Exercisable	$ 0.12	$ 0.12

STOCK OPTIONS (Details Narrativ

STOCK OPTIONS (Details Narrative)	12 Months Ended
	Aug. 31, 2012
Stock Options Details Narrative
Weighted average remaining life of the options	3 years 5 months 1 day

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Income Taxes Details
Net loss	$ (896,886)	$ (3,500,776)
Statutory tax rate	35.00%	35.00%
Expected income tax recovery	$ (314,000)	$ (1,225,000)
Permanent differences		$ 911,000
Other	$ 34,000
Change in valuation allowance	$ 280,000	$ 314,000
Income tax recovery

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	Aug. 31, 2012	Aug. 31, 2011
Deferred tax assets
Net operating loss carry forwards	$ 591,000	$ 404,000
Capital assets	5,000
Mineral properties	88,000
Total deferred tax assets	684,000	$ 404,000
Less: Valuation allowance	$ (684,000)	$ (404,000)
Net deferred income tax assets

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Income Taxes Details Narrative
Net operating loss carry forwards	$ 1,690,000	$ 1,152,973
Net operating loss carry forwards expire	between 2020 and 2032

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Shareholder advanced	$ 975,652	$ 781,597
President [Member]
Consulting fees	35,453
Director [Member]
Consulting fees	$ 9,500