Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Sep. 26, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Golden Star Resource Corp. | ' |
Entity Central Index Key | '0001375348 | ' |
Document Type | '10-K | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
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 | ' | $0 |
Entity Common Stock, Shares Outstanding | ' | 0 |
Document Fiscal Period Focus | 'FY | ' |
Document Fiscal Year Focus | '2014 | ' |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Current | ' | ' |
Cash | $3 | $28 |
TOTAL ASSETS | 3 | 28 |
Current | ' | ' |
Accounts payable and accrued liabilities | 175,864 | 161,883 |
Loan payable | 170,758 | 147,574 |
Due to related parties | 71,379 | 54,959 |
TOTAL LIABILITIES | 418,001 | 364,416 |
STOCKHOLDERS' (DEFICIENCY) EQUITY | ' | ' |
Capital Stock Authorized: 100,000,000 voting common shares with a par value of $0.00001 per share 100,000,000 preferred shares with a par value of $0.00001 per share, none issued Issued: 7,070,000 common shares at June 30, 2014 and 2013 | 70 | 70 |
Additional paid in capital | 106,990 | 106,990 |
Deficit Accumulated During the Exploration Stage | -525,058 | -471,448 |
TOTAL STOCKHOLDER' (DEFICEINCY) EQUITY | -417,998 | -364,388 |
TOTAL LIABILITIES AND STOCKHOLDERS' ( DEFICIENCY) EQUITY | $3 | $28 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Stockholders Equity | ' | ' |
Common shares Par value | $0.00 | $0.00 |
Common shares Authorized | 100,000,000 | 100,000,000 |
Common shares issued | 7,070,000 | 7,070,000 |
Preferred shares Par value | $0.00 | $0.00 |
Preferred shares Authorized | 100,000,000 | 100,000,000 |
STATEMENTS_OF_OPERATIONS_AND_C
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | 98 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Income Statement [Abstract] | ' | ' | ' |
Revenue | $0 | $0 | $0 |
Expenses | ' | ' | ' |
Professional fees | 15,575 | 16,831 | 178,845 |
Administration | 0 | 13,500 | 49,500 |
Consulting fees | 0 | 22,500 | 98,359 |
Mineral claim maintenance fees | 0 | 3,177 | 13,177 |
Transfer and filing fees | 6,475 | 7,406 | 23,545 |
Office and sundry | 8,338 | 7,640 | 49,342 |
Interest expenses | 15,127 | 15,178 | 45,615 |
Rent | 0 | 1,500 | 18,500 |
Foreign exchange loss | 0 | 239 | -6,206 |
Travel | 8,095 | 37,961 | 54,381 |
TOTAL EXPENSES | 53,610 | 125,932 | 525,058 |
Net Loss and Comprehesive Loss | ($53,610) | ($125,932) | ($525,058) |
Basic and fully diluted loss per share | ($0.01) | ($0.02) | ' |
Weighted average number of common shares outstanding | 7,070,000 | 7,070,000 | ' |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | 98 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Cash flow from Operating Activities: | ' | ' | ' |
Net loss for the period | ($53,610) | ($125,932) | ($525,058) |
Items not affecting cash: | ' | ' | ' |
Accrued interest expense | 15,127 | 15,178 | 45,615 |
Changes in non-cash working capital: | ' | ' | ' |
Prepaid expenses | 0 | 1,500 | 0 |
Accounts payable and accrued liabilities | 13,981 | 31,383 | 175,864 |
Due to a related party | 16,420 | 54,959 | 71,379 |
Net Cash Used in Operating Activities | -8,082 | -22,912 | -232,200 |
Cash flow from financing activities | ' | ' | ' |
Loan payable | 8,057 | 21,390 | 83,989 |
Due to related parties | 0 | 0 | 41,154 |
Issue of share capital | 0 | 0 | 107,060 |
Net Cash Provided by Financing Activities | 8,057 | 21,390 | 232,203 |
Net Increase (Decrease) In Cash | -25 | -1,522 | 3 |
Cash, Beginning Of Year | 28 | 1,550 | 0 |
Cash, (Bank indebtedness) End Of Year | 3 | 28 | 3 |
Supplemental Information of Cash Flow Information | ' | ' | ' |
Interest paid | 0 | 0 | 0 |
Income taxes paid | $0 | $0 | $0 |
STATEMENTS_OF_STOCKHOLDERS_DEF
STATEMENTS OF STOCKHOLDERS' (DEFICIENCY) EQUITY (Unaudited) (USD $) | Common Stock | Additional Paid-In Capital | Deficit Accumulated During the Development Stage | Total |
Beginning Balance, Amount at Jun. 30, 2012 | $70 | $106,990 | ($345,516) | ($238,456) |
Beginning Balance, Shares at Jun. 30, 2012 | 7,070,000 | ' | ' | ' |
Net loss | ' | ' | -125,932 | -125,932 |
Ending Balance, Amount at Jun. 30, 2013 | 70 | 106,990 | -471,448 | -364,388 |
Ending Balance, Shares at Jun. 30, 2013 | 7,070,000 | ' | ' | ' |
Net loss | ' | ' | -53,610 | -53,610 |
Ending Balance, Amount at Jun. 30, 2014 | $70 | $106,990 | ($525,058) | ($417,998) |
Ending Balance, Shares at Jun. 30, 2014 | 7,070,000 | ' | ' | ' |
1_NATURE_OF_OPERATIONS
1. NATURE OF OPERATIONS | 12 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
1. NATURE OF OPERATIONS | ' |
Organization | |
The Company was incorporated in the State of Nevada, U.S.A. on April 21, 2006. | |
Exploration Stage Activities | |
The Company has been in the exploration stage since its formation and is primarily engaged in the acquisition and exploration of mining claims. Upon location of a commercial minable reserve, the Company expects to actively prepare the site for its extraction and enter a development stage. During the fiscal year 2012, the Company entered into an agreement with Mayan Mineral Ltd. to acquire a resource property in Nevada (Note 4). Currently, the Company is actively looking for other mineral properties for its planned business operation. | |
Going Concern | |
These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. | |
The general business strategy of the Company is to acquire and explore mineral properties. The continued operations of the Company and the recoverability of mineral property costs is dependent upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain necessary financing to complete the development of its properties, and upon future profitable production. The Company has not generated any revenues or completed development of any properties to date. Further, the Company has a working capital deficit of $417,998 (2013 - $364,388), has incurred losses of $525,058 since inception, and further significant losses are expected to be incurred in the exploration and development of its mineral properties. The Company will require additional funds to meet its obligations and maintain its operations. There can be no guarantee that the Company will be successful in raising the necessary financing. Management’s plans in this regard are to raise equity financing as required. | |
These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might result from this uncertainty. |
2_SUMMARY_OF_SIGNIFICANT_ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
The financial statements of the Company have been prepared in accordance with US GAAP. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. Actual results may vary from these estimates. The financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below. | |
a) Exploration Stage Enterprise | |
The Company’s financial statements are prepared using the accrual method of accounting and according to the provisions of ASC 915 “Accounting and Reporting for Development Stage Enterprises,” as it devotes substantially all of its efforts to acquiring and exploring mineral properties. Until such properties are acquired and developed, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage. | |
b) Cash | |
The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. There is no cash equivalents as at June 30, 2014 (2013: $Nil). | |
c) Mineral Property Acquisition Payments | |
The Company expenses all costs incurred on mineral properties to which it has secured exploration rights prior to the establishment of proven and probable reserves. If and when proven and probable reserves are determined for a property and a feasibility study prepared with respect to the property, then subsequent exploration and development costs of the property will be capitalized. | |
The Company regularly performs evaluations of any investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable. | |
d) Exploration Expenditures | |
The Company follows a policy of expensing exploration expenditures until a production decision in respect of the project and the Company is reasonably assured that it will receive regulatory approval to permit mining operations, which may include the receipt of a legally binding project approval certificate. | |
e) Asset Retirement Obligations | |
The Company has adopted ASC 410, “Accounting for Asset Retirement Obligations”, which requires that an asset retirement obligation (“ARO”) associated with the retirement of a tangible long-lived asset be recognized as a liability in the period which it is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated asset. | |
The cost of the tangible asset, including the initially recognized ARO, is depleted, such that the cost of the ARO is recognized over the useful life of the asset. The ARO is recorded at fair value, and accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. The fair value of the ARO is measured using expected future cash flow, discounted at the Company’s credit-adjusted risk-free interest rate. To date, no significant asset retirement obligation exists due to the early stage of exploration. Accordingly, no liability has been recorded. | |
f) Use of Estimates and Assumptions | |
The preparation of financial statements in conformity with United States generally accepted accounting principles 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. | |
g) Financial Instruments | |
ASC 820, “Fair Value Measurements and Disclosures” requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | |
Level 1 - Quoted prices in active markets for identical assets or liabilities; | |
Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and | |
Level 3 - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. | |
The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, loan payable and due to a related party. Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of all of the other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. | |
The Company’s operations are in Canada, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company’s operations that arise 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) Environmental Costs | |
Environmental expenditures that relate to current operations are charged to operations or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are charged to operations. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or the Company’s commitments to plan of action based on the then known facts. | |
i) Income Taxes | |
The Company accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” and ASC 740 —Accounting for Uncertainty in Income Taxes, which require the liability method of accounting for income taxes. The liability method requires the recognition of deferred tax assets and liabilities for future tax consequences of temporary differences between the financial statement basis and the tax basis of assets and liabilities. | |
j) Basic and Diluted Net Loss Per Share | |
The Company reports basic loss per share in accordance with ASC 260 – “Earnings Per Share”. Basic loss per share is computed using the weighted average number of common stock outstanding during the period. Diluted loss per share is computed using the weighted average number of common and potentially dilutive common stock outstanding during the period. Diluted loss per share is equal to basic loss per share because there are no potential dilutive securities. | |
k) Foreign Currency Translation | |
The Company’s functional currency is the U.S. dollar. Transactions in foreign currencies are translated into U.S. dollars at the rate of exchange prevailing at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated into U.S. dollars at the rate prevailing at the balance sheet date. Non-monetary items are translated at the historical rate unless such items are carried at market value, in which case they are translated using exchange rates that existed when the value were determined. Any resulting exchange rate differences are recorded in the statement of operations. |
3_RECENT_ACCOUNTING_PRONOUNCEM
3. RECENT ACCOUNTING PRONOUNCEMENTS ADOPTED AND NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Jun. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
3. RECENT ACCOUNTING PRONOUNCEMENTS ADOPTED AND NEW ACCOUNTING PRONOUNCEMENTS | ' |
In July 2013, FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exits.” The FASB’s objective in issuing this ASU is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. This ASU applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction as of the reporting date. ASU No. 2013-11 is effective for public entities for fiscal years beginning after December 15, 2013, and interim periods within those years. Early adoption is permitted. The amendments should be applied to all unrecognized tax benefits that exist as of the effective date. Entities may choose to apply the amendments retrospectively to each prior reporting period presented. We are currently assessing the impact of the adoption of this update on our financial position or results of operations. | |
The Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements. |
4_MINERAL_CLAIM_INTEREST
4. MINERAL CLAIM INTEREST | 12 Months Ended |
Jun. 30, 2014 | |
Extractive Industries [Abstract] | ' |
4. MINERAL CLAIM INTEREST | ' |
On August 15, 2013, the Company entered into a Quitclaim Deed (the “Deed”) with Kee Nez Resources, LLC (“Grantor”), a Utah limited liability company. Pursuant to the Deed, the Grantor, in consideration of $10 and other valuable consideration, remise, release, and forever quitclaim unto the Company all of Grantor’s right, title, and interest in and to the GSR group of unpatented lode mining claims situated in Churchill Country, Nevada. The property consists of two Minerals Lode Claims (“GSR”) totaling 40 acres in the Fairview mining district, Churchill County, Nevada. The property is located 98 air miles southeast of Reno and is accessible by road. It is in the vicinity of the Bell Mountain Mining Project which lies along the Eastern margin of the Walker Lane mineral belt which contains a number of past-producing gold-silver deposits and major mining districts (e.g. Tonopah, Rawhide, Paradise Peak). The Company has obtained title to the GSR claims in August 2013. | |
The Company did not incur further expenditures on the property during the year ended June 30, 2014 (2013: $3,177) due to lack of cash. |
5_CAPITAL_STOCK
5. CAPITAL STOCK | 12 Months Ended | ||
Jun. 30, 2014 | |||
Equity [Abstract] | ' | ||
5. CAPITAL STOCK | ' | ||
a) | On April 24, 2006, the Company issued 6,000,000 common shares at $0.00001 per share to two founding shareholders. | ||
b) | On March 28, 2007, the Company closed its public offering and issued additional 1,070,000 common shares at $0.10. | ||
c) | The Company has not issued any shares during the years ended June 30, 2014 and 2013 and it has no stock option plan, warrants or other dilutive securities. | ||
6_DUE_TO_RELATED_PARTY
6. DUE TO RELATED PARTY | 12 Months Ended | ||
Jun. 30, 2014 | |||
Notes to Financial Statements | ' | ||
6. DUE TO RELATED PARTY | ' | ||
As of June 30, 2014, due to related parties balance of $71,379 (2013: $54,959) represents the combination of the following: | |||
a) | $55,379 (2013: $54,959) owed to a company controlled by a former director and principal shareholder of the Company, for the amount of office, transfer agent and travel expenses paid by the related party on behalf of the Company. The amount is unsecured, non-interest bearing and due on demand; and | ||
b) | $16,000 (2013: $nil) owed to a director of the Company, for the amount of office, travel and telephone expenses paid by the related party on behalf of the Company. The amount is unsecured, non-interest bearing and due on demand. | ||
7_LOAN_PAYABLE
7. LOAN PAYABLE | 12 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
7. LOAN PAYABLE | ' |
Loan payable consists of followings: | |
$137,595 (2013: $125,486) was payable to 0787129 B.C. Ltd. (a non-related party) of which $51,272 and $34,827 were the result of the assignment and transfer from loan payable to ATP Corporate Services Corp. (a non-related party) and Bobcat Development, respectively. The loan amount is unsecured, interest-bearing at 12% per annual and due on demand. During the year, the Company incurred and accrued interest expense of $12,109 (2013: $11,160). | |
$30,264 (2013: $19,489) was payable to Bobcat Development. The loan amount is unsecured, interest-bears at 12% per annual and due on demand. During the year, the Company incurred and accrued interest expenses of $2,627 (2013: $865). | |
$2,899 (2013: $2,600) was payable to Dimac Capital (a related party). The loan amount is unsecured, interest-bears at 12% per annual and due on demand. During the year, the Company incurred and accrued interest expenses of $300 (2013: $99). | |
8_INCOME_TAXES
8. INCOME TAXES | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
8. INCOME TAXES | ' | ||||||||
a) | A reconciliation of income tax expense to the amount computed at the statutory rate is as follows: | ||||||||
2014 | 2013 | ||||||||
Net loss for the year | $ | (53,610 | ) | $ | (125,932 | ) | |||
Statutory tax rate | 34 | % | 35 | % | |||||
Computed expected (benefit) income taxes | (18,228 | ) | (44,076 | ) | |||||
Change in enacted tax rate | 4,705 | - | |||||||
Income tax benefit not recognized | 13,523 | 44,076 | |||||||
$ | - | $ | - | ||||||
b) | Significant components of deferred income tax assets are as follows: | ||||||||
2014 | 2013 | ||||||||
Operating losses carried forward | $ | 178,000 | $ | 165,000 | |||||
Valuation allowance | (178,000 | ) | (165,000 | ) | |||||
$ | - | $ | - | ||||||
c) | The Company has incurred operating losses of approximately $525,000 which, if unutilized, will expire through to 2034. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, and have been offset by a valuation allowance. The following table lists the fiscal year in which the loss was incurred and the expiration date of the operating loss carry forwards: | ||||||||
INCOME TAX OPERATING | |||||||||
LOSS CARRY FORWARDS | |||||||||
EXPIRATION | |||||||||
AMOUNT | DATE | ||||||||
$ | 54,000 | 2034 | |||||||
126,000 | 2033 | ||||||||
107,000 | 2032 | ||||||||
88,000 | 2031 | ||||||||
13,000 | 2030 | ||||||||
22,000 | 2029 | ||||||||
68,000 | 2028 | ||||||||
37,000 | 2027 | ||||||||
10,000 | 2026 | ||||||||
Total income tax operating loss carry forward | $ | 525,000 |
9_CONTRACTUAL_OBLIGATIONS_AND_
9. CONTRACTUAL OBLIGATIONS AND COMMITMENTS | 12 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
9. CONTRACTUAL OBLIGATIONS AND COMMITMENTS | ' |
On July 1, 2010, the Company entered into a consulting agreement for services relating to corporate and financial affairs with a non-related party for a term of 24 months, unless terminated earlier, for a consideration of $30,000 a year and payable $2,500 per month. The agreement will automatically renew for a further 24 months unless one of the party gives a notice of nonrenewal. During the fiscal year 2014, the Company incurred and accrued a total consulting fee of $Nil (2013: $22,500) in connection with the consulting agreement as the agreement was terminated on March 31, 2013. | |
On July 1, 2010, the Company entered into an administrative services agreement with ATP Corporate Services for providing administration services over a term of 24 months for a consideration of $1,500 per month. Pursuant to the administrative services agreement, ATP Corporate Services is also entitled for reimbursement of office and rent expenses incurred. During the year 2014, the Company incurred and accrued a total of $Nil and $Nil (2013: $13,500 and $4,500 in total) for the administrative expense and telephone expense, respectively, since the agreement was terminated on March 31, 2013. |
2_SUMMARY_OF_SIGNIFICANT_ACCOU1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
a) Exploration Stage Enterprise | ' |
The Company’s financial statements are prepared using the accrual method of accounting and according to the provisions of ASC 915 “Accounting and Reporting for Development Stage Enterprises,” as it devotes substantially all of its efforts to acquiring and exploring mineral properties. Until such properties are acquired and developed, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage. | |
b) Cash | ' |
The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. There is no cash equivalents as at June 30, 2014 (2013: $Nil). | |
c) Mineral Property Acquisition Payments | ' |
The Company expenses all costs incurred on mineral properties to which it has secured exploration rights prior to the establishment of proven and probable reserves. If and when proven and probable reserves are determined for a property and a feasibility study prepared with respect to the property, then subsequent exploration and development costs of the property will be capitalized. | |
The Company regularly performs evaluations of any investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable. | |
d) Exploration Expenditures | ' |
The Company follows a policy of expensing exploration expenditures until a production decision in respect of the project and the Company is reasonably assured that it will receive regulatory approval to permit mining operations, which may include the receipt of a legally binding project approval certificate. | |
e) Asset Retirement Obligations | ' |
The Company has adopted ASC 410, “Accounting for Asset Retirement Obligations”, which requires that an asset retirement obligation (“ARO”) associated with the retirement of a tangible long-lived asset be recognized as a liability in the period which it is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated asset. | |
The cost of the tangible asset, including the initially recognized ARO, is depleted, such that the cost of the ARO is recognized over the useful life of the asset. The ARO is recorded at fair value, and accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. The fair value of the ARO is measured using expected future cash flow, discounted at the Company’s credit-adjusted risk-free interest rate. To date, no significant asset retirement obligation exists due to the early stage of exploration. Accordingly, no liability has been recorded. | |
f) Use of Estimates and Assumptions | ' |
The preparation of financial statements in conformity with United States generally accepted accounting principles 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. | |
g) Financial Instruments | ' |
ASC 820, “Fair Value Measurements and Disclosures” requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | |
Level 1 - Quoted prices in active markets for identical assets or liabilities; | |
Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and | |
Level 3 - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. | |
The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, loan payable and due to a related party. Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of all of the other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. | |
The Company’s operations are in Canada, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company’s operations that arise 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) Environmental Costs | ' |
Environmental expenditures that relate to current operations are charged to operations or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are charged to operations. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or the Company’s commitments to plan of action based on the then known facts. | |
i) Income Taxes | ' |
The Company accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” and ASC 740 —Accounting for Uncertainty in Income Taxes, which require the liability method of accounting for income taxes. The liability method requires the recognition of deferred tax assets and liabilities for future tax consequences of temporary differences between the financial statement basis and the tax basis of assets and liabilities. | |
j) Basic and Diluted Net Loss Per Share | ' |
The Company reports basic loss per share in accordance with ASC 260 – “Earnings Per Share”. Basic loss per share is computed using the weighted average number of common stock outstanding during the period. Diluted loss per share is computed using the weighted average number of common and potentially dilutive common stock outstanding during the period. Diluted loss per share is equal to basic loss per share because there are no potential dilutive securities. | |
k) Foreign Currency Translation | ' |
The Company’s functional currency is the U.S. dollar. Transactions in foreign currencies are translated into U.S. dollars at the rate of exchange prevailing at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated into U.S. dollars at the rate prevailing at the balance sheet date. Non-monetary items are translated at the historical rate unless such items are carried at market value, in which case they are translated using exchange rates that existed when the value were determined. Any resulting exchange rate differences are recorded in the statement of operations. |
8_INCOME_TAXES_Tables
8. INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Reconciliation of income tax expense | ' | ||||||||
2014 | 2013 | ||||||||
Net loss for the year | $ | (53,610 | ) | $ | (125,932 | ) | |||
Statutory tax rate | 34 | % | 35 | % | |||||
Computed expected (benefit) income taxes | (18,228 | ) | (44,076 | ) | |||||
Change in enacted tax rate | 4,705 | - | |||||||
Income tax benefit not recognized | 13,523 | 44,076 | |||||||
$ | - | $ | - | ||||||
Components of deferred income tax assets | ' | ||||||||
2014 | 2013 | ||||||||
Operating losses carried forward | $ | 178,000 | $ | 165,000 | |||||
Valuation allowance | (178,000 | ) | (165,000 | ) | |||||
$ | - | $ | - | ||||||
Summary of Operating Loss Carryforwards | ' | ||||||||
INCOME TAX OPERATING | |||||||||
LOSS CARRY FORWARDS | |||||||||
EXPIRATION | |||||||||
AMOUNT | DATE | ||||||||
$ | 54,000 | 2034 | |||||||
126,000 | 2033 | ||||||||
107,000 | 2032 | ||||||||
88,000 | 2031 | ||||||||
13,000 | 2030 | ||||||||
22,000 | 2029 | ||||||||
68,000 | 2028 | ||||||||
37,000 | 2027 | ||||||||
10,000 | 2026 | ||||||||
Total income tax operating loss carry forward | $ | 525,000 |
1_NATURE_OF_OPERATIONS_Details
1. NATURE OF OPERATIONS (Details Narrative) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Nature Of Operations Details Narrative | ' | ' |
Working capital deficit | $417,998 | $364,388 |
Deficit Accumulated During the Exploration Stage | ($525,058) | ($471,448) |
4_MINERAL_CLAIM_INTEREST_Detai
4. MINERAL CLAIM INTEREST (Details Narrative) (USD $) | 12 Months Ended | 98 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Mineral Claim Interest Details Narrative | ' | ' | ' |
Mineral claim payment | $0 | $3,177 | $13,177 |
6_DUE_TO_A_RELATED_PARTY_Detai
6. DUE TO A RELATED PARTY (Details Narrative) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Due to related parties | $71,379 | $54,959 |
Company controlled by a former director and principal shareholder of the Company | ' | ' |
Due to related parties | $71,379 | $54,959 |
8_INCOME_TAXES_Details
8. INCOME TAXES (Details) (USD $) | 12 Months Ended | 98 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Net loss for the year | ($53,610) | ($125,932) | ($525,058) |
Statutory tax rate | 34.00% | 35.00% | ' |
Computed expected (benefit) income taxes | -18,228 | -44,076 | ' |
Change in enacted tax rate | 4,705 | 0 | ' |
Income tax benefit not recognized | 13,523 | 44,076 | ' |
Net income tax expense | $0 | $0 | ' |
8_INCOME_TAXES_Details_1
8. INCOME TAXES (Details 1) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Operating losses carried forward | $178,000 | $165,000 |
Valuation allowance | -178,000 | -165,000 |
Net deferred income tax assets | $0 | $0 |
8_INCOME_TAXES_Details_2
8. INCOME TAXES (Details 2) (USD $) | Jun. 30, 2014 |
EXPIRATION DATE | ' |
2034 | $54,000 |
2033 | 126,000 |
2032 | 107,000 |
2031 | 88,000 |
2030 | 13,000 |
2029 | 22,000 |
2028 | 68,000 |
2027 | 37,000 |
2026 | 10,000 |
Total income tax operating loss carry forward | $525,000 |
9_CONTRACTUAL_OBLIGATIONS_AND_1
9. CONTRACTUAL OBLIGATIONS AND COMMITMENTS (Details Narrative) (USD $) | 12 Months Ended | 98 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Contractual Obligations And Commitments Details Narrative | ' | ' | ' |
Consulting fees | $0 | $22,500 | $98,359 |
Administrative expense | $0 | $13,500 | $49,500 |