Document and Entity Information
Document and Entity Information - CAD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Nov. 23, 2020 | Dec. 31, 2019 | |
Details | |||
Registrant CIK | 0001407583 | ||
Fiscal Year End | --06-30 | ||
Registrant Name | Bunker Hill Mining Corp. | ||
SEC Form | 10-K/A | ||
Period End date | Jun. 30, 2020 | ||
Tax Identification Number (TIN) | 32-0196442 | ||
Number of common stock shares outstanding | 143,117,068 | ||
Public Float | $ 41,890,318 | ||
Filer Category | Non-accelerated Filer | ||
Current with reporting | Yes | ||
Interactive Data Current | Yes | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Shell Company | false | ||
Small Business | true | ||
Emerging Growth Company | false | ||
Amendment Description | The purpose of this Amendment is to restate and amend previously issued financial statements. In November 2020, it was determined that the Company has underaccrued for invoices issued by the United States Environmental Protection Agency ('EPA') for excess water treatment costs relating to years ended June 30, 2018, 2019 and 2020, interest payable on the outstanding EPA balance, and for a finder's fee related to the Company's February 2020 private placement, which resulted in an understatement of liabilities for 2019 and 2020, an overstatement of additional paid-in-capital for 2020, an understatement of opening and closing deficit for 2019 and 2020, and an understatement of exploration expenses and net losses for 2019 and 2020. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity File Number | 333-150028 | ||
Entity Address, Address Line One | 82 Richmond Street East | ||
Entity Address, City or Town | Toronto | ||
Entity Address, State or Province | ON | ||
Entity Address, Postal Zip Code | M5C 1P1 | ||
City Area Code | 416 | ||
Local Phone Number | 477-7771 | ||
Amendment Flag | true | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false |
Bunker Hill Mining Corp. Consol
Bunker Hill Mining Corp. Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 61,973 | $ 28,064 |
Accounts receivable | 78,692 | 42,864 |
Prepaid expenses | 102,714 | 35,172 |
Total current assets | 243,379 | 106,100 |
Equipment (note 6) | 207,810 | 52,050 |
Non-current assets | ||
Right-of-use assets (note 7) | 212,755 | 0 |
Long term deposit | 68,939 | 68,939 |
Mining interests (note 8) | 1 | 1 |
Total assets | 732,884 | 227,090 |
Current liabilities | ||
Accounts payable (notes 8 and 17) | 4,389,964 | 3,421,625 |
Accrued liabilities (notes 8 and 15) | 7,216,114 | 2,896,025 |
Other liabilities | 0 | 57,307 |
DSU liability (note 14) | 549,664 | 0 |
Interest payable (notes 9 and 10) | 403,933 | 201,507 |
Convertible loan payable (note 9) | 1,600,000 | 1,744,327 |
Promissory notes payable (note 10) | 836,592 | 0 |
Current portion of lease liability (note 11) | 102,027 | 0 |
Total current liabilities | 15,098,294 | 8,320,791 |
Non-current liabilities | ||
Lease liability (note 11) | 112,712 | 0 |
Derivative warrant liability (notes 9, 10 and 12) | 18,763,797 | 116,809 |
Total liabilities | 33,974,803 | 8,437,600 |
Shareholders' Deficiency | ||
Preferred shares, $0.000001 par value, 10,000,000 preferred shares authorized; No preferred shares issued and outstanding (note 11) | 0 | 0 |
Common shares, $0.000001 par value, 750,000,000 common shares authorized; 79,259,940 and 15,811,396 common shares issued and outstanding, respectively (note 12) | 79 | 16 |
Additional paid-in-capital (note 12) | $ 30,133,058 | $ 24,284,765 |
Shares to be issued | 549,363 | 107,337 |
Deficit accumulated during the exploration stage | $ (63,924,419) | $ (32,602,628) |
Total shareholders' deficiency | (33,241,919) | (8,210,510) |
Total shareholders' deficiency and liabilities | $ 732,884 | $ 227,090 |
Bunker Hill Mining Corp. Cons_2
Bunker Hill Mining Corp. Consolidated Balance Sheets - Parenthetical - $ / shares | Jun. 30, 2020 | Jun. 30, 2019 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.000001 | $ 0.000001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.000001 | $ 0.000001 |
Common Stock, Shares Authorized | 750,000,000 | 750,000,000 |
Common Stock, Shares, Issued | 79,259,940 | 15,811,396 |
Bunker Hill Mining Corp. Cons_3
Bunker Hill Mining Corp. Consolidated Statements of Loss and Comprehensive Loss - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating expenses | ||
Operation and administration (notes 12, 13 and 14) | $ 1,327,059 | $ 1,189,226 |
Exploration | 8,645,431 | 6,416,733 |
Legal and accounting | 268,181 | 240,969 |
Consulting | 553,152 | 266,998 |
Loss from operations | (10,793,823) | (8,113,926) |
Other income or gain (expense or loss) | ||
Change in derivative liability (notes 9, 10 and 12) | (18,843,947) | 1,892,488 |
Accretion expense (notes 9 and 10) | (359,267) | (734,589) |
Financing costs (note 10) | (30,000) | 0 |
Loss on foreign exchange | (26,625) | (15,261) |
Interest expense (notes 9 and 10) | (202,426) | (256,029) |
Loss on sale of equipment | 0 | (10,930) |
Loss on loan extinguishment (note 9) | (9,407) | (1,204,073) |
Loss on debt settlement (note 12) | (1,056,296) | 0 |
Loss before income tax | (31,321,791) | (8,442,320) |
Provision for income taxes | 0 | 0 |
Net loss and comprehensive loss for the year | $ (31,321,791) | $ (8,442,320) |
Net loss per common share - basic and fully diluted | $ (0.47) | $ (2.14) |
Weighted average number of common shares - basic and fully diluted | 67,180,554 | 3,951,072 |
Bunker Hill Mining Corp. Cons_4
Bunker Hill Mining Corp. Consolidated Statements of Changes in Shareholders' Deficit - USD ($) | Common Stock | Additional Paid-in Capital | Warrant | Retained Earnings | Total |
Equity balance, shares at Jun. 30, 2018 | 3,301,372 | ||||
Equity Balance at Jun. 30, 2018 | $ 3 | $ 23,397,259 | $ 0 | $ (24,160,308) | $ (763,046) |
Stock-based compensation | 0 | 43,403 | 0 | 0 | 43,403 |
Shares issued | $ 0 | 549,333 | 0 | 0 | 549,333 |
Shares issued | 160,408 | ||||
Shares issued at $0.57 per share | $ 1 | 365,340 | 0 | 0 | 365,341 |
Shares issued | 645,866 | ||||
Shares issued at $0.04 per share | $ 12 | $ 436,596 | $ 0 | $ 0 | $ 436,608 |
Shares issued | 11,660,000 | ||||
Shares issued | 0 | 268,930 | 0 | 0 | 268,930 |
Shares issued | $ 43,750 | ||||
Issue costs | 0 | $ (55,452) | $ 0 | $ (55,452) | |
Shares to be issued | 0 | 0 | 107,337 | $ 0 | 107,337 |
Warrant valuation | 0 | (720,644) | 0 | 0 | (720,644) |
Net loss for the year | $ 0 | 0 | 0 | (8,442,320) | (8,442,320) |
Equity balance, shares at Jun. 30, 2019 | 15,811,396 | ||||
Equity Balance at Jun. 30, 2019 | $ 16 | 24,284,765 | 107,337 | (32,602,628) | (8,210,510) |
Stock-based compensation | 0 | 497,724 | 0 | 0 | 497,724 |
Shares issued at $0.04 per share | $ 35 | 1,315,691 | (107,337) | 0 | 1,208,389 |
Shares issued | 35,008,956 | ||||
Issue costs | $ 0 | (336,480) | 0 | 0 | (336,480) |
Shares to be issued | 0 | 0 | 549,363 | 0 | 549,363 |
Warrant valuation | 0 | (468,227) | 0 | 0 | (468,227) |
Net loss for the year | 0 | 0 | 0 | (31,321,791) | (31,321,791) |
Units issued for debt settlement | $ 17 | 1,499,034 | 0 | 0 | 1,499,051 |
Shares issued for debt settlement at $0.09 per share | 16,962,846 | ||||
Shares issued for debt settlement | $ 2 | 274,916 | 0 | 0 | 274,918 |
Shares issued | 2,033,998 | ||||
Stock issued additional settlement, value | $ 3 | 1,301,522 | 0 | 0 | 1,301,525 |
Stock issued additional settlement, stock | 3,098,216 | ||||
Shares issued for debt settlement | $ 1 | 299,999 | 0 | 0 | 300,000 |
Shares issued for debt settlement | 696,428 | ||||
Stock issued for finders units, value | $ 3 | 125,177 | 0 | 0 | 125,180 |
Shares issued | 3,315,200 | ||||
Warrants issued for finders | $ 0 | 50,223 | 0 | 0 | 50,223 |
Stock issued for warrants exercised, value | $ 2 | 1,288,714 | 0 | 0 | 1,288,716 |
Stock issued for warrants exercised, stock | 2,332,900 | ||||
Equity balance, shares at Jun. 30, 2020 | 79,259,940 | ||||
Equity Balance at Jun. 30, 2020 | $ 79 | $ 30,133,058 | $ 549,363 | $ (63,924,419) | $ (33,241,919) |
Bunker Hill Mining Corp. Cons_5
Bunker Hill Mining Corp. Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net loss for the year | $ (31,321,791) | $ (8,442,320) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock based compensation | 1,047,388 | 43,403 |
Depreciation expense | 123,956 | 9,897 |
Change in fair value of warrant liability | 18,843,947 | (1,892,488) |
Accretion expense | 359,267 | 734,589 |
Financing costs | 30,000 | 0 |
Loss on sale of equipment | 0 | 10,930 |
Loss on loan extinguishment | 9,407 | 1,204,073 |
Interest expense on lease liability | 27,062 | 0 |
Loss on debt settlement | 1,056,296 | 0 |
Foreign exchange gain on retranslation of lease liability | (10,766) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (35,828) | 186,182 |
Deposit | 0 | 90,248 |
Prepaid expenses | (67,542) | 553,458 |
Long term deposit | 0 | (68,939) |
Accounts payable | 1,479,992 | 2,670,639 |
Accrued liabilities | 4,320,089 | 2,421,011 |
Other liabilities | (11,117) | (110) |
Interest payable | 202,426 | 198,219 |
Net cash used in operating activities | (3,947,214) | (2,281,208) |
Investing activities | ||
Purchase of machinery and equipment | (219,528) | (6,555) |
Proceeds on disposal of equipment | 0 | 10,000 |
Net cash (used in) provided by investing activities | (219,528) | 3,445 |
Financing activities | ||
Proceeds from convertible loan payable | 0 | 500,000 |
Proceeds from issuance of common stock, net of issue costs | 2,428,530 | 1,195,830 |
Proceeds from warrants exercised | 417,006 | 0 |
Shares to be issued | 549,363 | 107,337 |
Lease payments | (120,690) | 0 |
Proceeds from promissory notes | 1,084,536 | 0 |
Repayment of promissory note | (158,094) | 0 |
Net cash provided by financing activities | 4,200,651 | 1,803,167 |
Net change in cash and cash equivalents | 33,909 | (474,596) |
Cash and cash equivalents, beginning of year | 28,064 | 502,660 |
Cash and cash equivalents, end of year | 61,973 | 28,064 |
Non-cash activities: | ||
Stock issued during period value accounts payable and accrued liabilities | 717,673 | 0 |
Common stock issued to settle convertible loan | 300,000 | 100,000 |
Stock issued during period Value settlement of accounts payable | 0 | 20,930 |
Stock options exercised used to settle accrued liabilities | $ 0 | $ 268,930 |
Note 1 - Nature and Continuance
Note 1 - Nature and Continuance of Operations and Going Concern | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 1 - Nature and Continuance of Operations and Going Concern | 1. Nature and continuance of operations and going concern Bunker Hill Mining Corp. (the “Company”) was incorporated under the laws of the state of Nevada, U.S.A on February 20, 2007 under the name Lincoln Mining Corp. Pursuant to a Certificate of Amendment dated February 11, 2010, the Company changed its name to Liberty Silver Corp., and on September 29, 2017 the Company changed its name to Bunker Hill Mining Corp. The Company’s registered office is located at 1802 N. Carson Street, Suite 212, Carson City Nevada 89701, and its head office is located at 401 Bay Street, Suite 2702, Toronto, Ontario, Canada, M5H 2Y4. As of the date of this Form 10-K, the Company had two subsidiaries, Bunker Hill Operating LLC, a Colorado corporation that is currently dormant, and American Zinc Corp., an Idaho corporation created to facilitate the work being conducted at the Bunker Hill Mine in Idaho. The Company was incorporated for the purpose of engaging in mineral exploration activities. It continues to work at developing its project with a view towards putting it into production. These consolidated financial statements have been prepared on a going concern basis. The Company (the "Company") has incurred losses since inception resulting in an accumulated deficit of $63,924,419 (restated) and further losses are anticipated in the development of its business. The Company does not have sufficient working capital needed to meet its current fiscal obligations and commitments. In order to continue to meet its fiscal obligations in the current fiscal year and beyond, the Company must seek additional financing. This raises substantial doubt about the Company’s ability to continue as a going concern. Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management is considering various financing alternatives including, but not limited to, raising capital through the capital markets and debt financing. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. The ability of the Company to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue operations, explore and develop the mineral properties and the discovery, development, and sale of reserves. These financial statements of the Company for the year ended June 30, 2020 were approved and authorized for issue by the Board of Directors of the Company on November 23, 2020. The Company’s operations could be significantly adversely affected by the effects of a widespread global outbreak of a contagious disease, including the recent outbreak of respiratory illness caused by COVID-19. The Company cannot accurately predict the impact COVID-19 will have on its operations and the ability of others to meet their obligations with the Company, including uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could further affect the Company’s operations and ability to finance its operations. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 2 - Basis of Presentation | 2. Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to exploration stage enterprises. The consolidated financial statements are expressed in U.S. dollars, the functional currency. The CompanyÂ’s fiscal year end is June 30. |
Note 3 - Significant Accounting
Note 3 - Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 3 - Significant Accounting Policies | 3. Significant accounting policies The following is a summary of significant accounting policies used in the preparation of these consolidated financial statements. Basis of consolidation These consolidated financial statements include the assets, liabilities and expenses of the Company and its wholly owned subsidiaries, American Zinc Corp. and Bunker Hill Operating LLC. All intercompany transactions and balances have been eliminated on consolidation. Cash and cash equivalents Cash and cash equivalents may include highly liquid investments with original maturities of three months or less. Mineral rights, property and acquisition costs The Company has been in the exploration stage since its formation on February 20, 2007 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. The Company capitalizes acquisition and option costs of mineral rights as intangible assets. Upon commencement of commercial production, the mineral rights will be amortized using the unit-of-production method over the life of the mineral rights. If the Company does not continue with exploration after the completion of the feasibility study, the mineral rights will be expensed at that time. The costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred to develop and expand the capacity of mines, or to develop mine areas in advance of production, are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current exploration or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (FASB ASC) 360-10-35, Impairment or Disposal of Long-Lived Assets. Equipment Equipment is stated at cost less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income or gain (expense or loss). The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful lives of equipment or whether the remaining balance of the equipment should be evaluated for possible impairment. If events and circumstances warrant evaluation, the Company uses an estimate of the related undiscounted cash flows over the remaining life of the equipment in measuring their recoverability. Leases Operating lease right of use assets ("ROU") assets represents the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is included in operation and administration expenses in the consolidated statements of loss and comprehensive loss. The Company is required to make additional payments for certain variable costs. These costs are expensed and included in operation and administration expenses in the consolidated statements of loss and comprehensive loss. Rental income obtained through subleases is recorded as income over the lease term and is offset against operation and administration expenses. Impairment of long-lived assets The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate the related carrying amounts may not be recoverable. The assets are subject to impairment consideration under FASB ASC 360, Property, Plant and Equipment, if events or circumstances indicate that their carrying amount might not be recoverable. When the Company determines that an impairment analysis should be done, the analysis is performed using the rules of FASB ASC 930-360-35, Extractive Activities - Mining, and 360-10-15-3 through 15-5, Impairment or Disposal of Long-Lived Assets. Various factors could impact the Company’s ability to achieve forecasted production schedules. Additionally, commodity prices, capital expenditure requirements and reclamation costs could differ from the assumptions the Company may use in cash flow models used to assess impairment. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material can ultimately be mined economically. Fair value of financial instruments The Company adopted FASB ASC 820-10, Fair Value Measurement. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: · · · The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable excluding HST, accounts payable, accrued liabilities, interest payable, convertible loan payable, promissory notes payable, lease liability, and other liabilities, all of which qualify as financial instruments, are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and current market rate of interest. The Company measured its DSU liability at fair value on recurring basis using level 1 inputs and derivative warrant liabilities at fair value on recurring basis using level 3 inputs. Environmental expenditures The operations of the Company have been, and may in the future, be affected from time to time, in varying degrees, by changes in environmental regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The Company’s policy is to meet, or if possible, surpass standards set by relevant legislation, by application of technically proven and economically feasible measures. Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized and amortized depending on their future economic benefits. Estimated future reclamation and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries. No costs have been recognized by the Company for environmental expenditures. Income taxes The Company accounts for income taxes in accordance with Accounting Standard Codification 740, Income Taxes ("FASB ASC 740"), on a tax jurisdictional basis. The Company files income tax returns in the United States. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax bases of assets and liabilities and the consolidated financial statements reported amounts using enacted tax rates and laws in effect in the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is determined to be more likely than not that the deferred tax asset will not be realized. The Company assesses the likelihood of the consolidated financial statements effect of a tax position that should be recognized when it is more likely than not that the position will be sustained upon examination by a taxing authority based on the technical merits of the tax position, circumstances, and information available as of the reporting date. The Company is subject to examination by taxing authorities in jurisdictions such as the United States. Management does not believe that there are any uncertain tax positions that would result in an asset or liability for taxes being recognized in the accompanying consolidated financial statements. The Company recognizes tax-related interest and penalties, if any, as a component of income tax expense. FSAB ASC 740 prescribes recognition threshold and measurement attributes for the consolidated financial statements recognition and measurement of a tax position taken, or expected to be taken, in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in periods, disclosure and transition. At June 30, 2018 and June 30, 2017, the Company has not taken any tax positions that would require disclosure under FASB ASC 740. Basic and diluted net loss per share The Company computes net loss per share of common stock in accordance with FASB ASC 260, Earnings per Share (“ASC 260”). Under the provisions of FASB ASC 260, basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants and the conversion of convertible loan payable. As of June 30, 2020, 7,580,159 stock options and 37,844,404 warrants were considered in the calculation but not included, as they were anti-dilutive (June 30, 2019 - 287,100 stock options and 13,046,484 warrants). Stock-based compensation In December 2004, the FASB issued FASB ASC 718, Compensation – Stock Compensation, which establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. FASB ASC 718 focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. FASB ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the consolidated financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. The Company accounts for stock-based compensation arrangements with non-employees in accordance with ASU 505-50, Equity-Based Payments to Non-Employees, which requires that such equity instruments are recorded at the value on the grant date based on fair value of the equity or goods and services whichever is more reliable. Restricted share units For Restricted Share Units ("RSUs"), the Company estimates the grant date fair value using the Company's common shares on the Canadian Securities Exchange at the grant date. The Company records the value of the RSUs in paid-in capital. Deferred share units The Company estimates the grant date fair value of the Deferred Share Units ("DSUs") using the trading price of the Company's common shares on the Canadian Securities Exchange on the day of grant. The Company records the value of the DSUs owing to its directors as DSU liability and measures the DSU liability at fair value at each reporting date, with changes in fair value recognized as stock-based compensation in profit (loss). Use of estimates and assumptions Many of the amounts included in the consolidated financial statements require management to make judgments and/or estimates. These judgments and estimates are continuously evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. Actual results may differ from the amounts included in the consolidated financial statements. Areas of significant judgment and estimates affecting the amounts recognized in the consolidated financial statements include: Going concern The assessment of the Company's ability to continue as a going concern involves judgment regarding future funding available for its operations and working capital requirements as discussed note 1. Accrued liabilities The Company has to make estimates to accrue for certain expenditures due to delay in receipt of third party vendor invoices. These accruals are made based on trends, history and knowledge of activities. Actual results may be different. Convertible loans, promissory notes and warrants Estimating the fair value of derivative warrant liability and conversion feature derivative liability requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the issuance. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the warrants and conversion feature derivative liability, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value of warrants and conversion feature derivative liability are disclosed in notes 9, 10 and 12. The fair value estimates may differ from actual fair values and these differences may be significant and could have a material impact on the Company’s balance sheets and the consolidated statements of operations. Assets are reviewed for an indication of impairment at each reporting date. This determination requires significant judgment. Factors that could trigger an impairment review include, but are not limited to, significant negative industry or economic trends, interruptions in exploration activities or a significant drop in precious metal prices. Concentrations of credit risk The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management also routinely assesses the financial strength and credit worthiness of any parties to which it extends funds and as such, it believes that any associated credit risk exposures are limited. Risks and uncertainties The Company operates in the mineralized material exploration industry that is subject to significant risks and uncertainties, including financial, operational, and other risks associated with operating a mineralized material exploration business, including the potential risk of business failure. Foreign currency transactions The Company from time to time will receive invoices from service providers that are presenting their invoices using the Canadian dollar. The Company will use its US dollars to settle the Canadian dollar liabilities and any differences resulting from the exchange transaction are reported as gain or loss on foreign exchange. Segment reporting FASB ASC 280-10, “Disclosures about Segments of an Enterprise and Related Information”, establishes standards for the way that public business enterprises report information about operating segments in the Company’s consolidated financial statements. Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has one operating segment and reporting unit. The Company operates in one reportable business segment and is organized and operated as one business. Management reviews its business as a single operating segment, using financial and other information rendered meaningful only by the fact that such information is presented and reviewed in the aggregate. Convertible loans and promissory notes payable The Company reviews the terms of its convertible loans and promissory notes payable to determine whether there are embedded derivatives, including the embedded conversion option, that are required to be bifurcated and accounted for as individual derivative financial instruments. In circumstances where the convertible debt or the promissory note contains embedded derivatives that are to be separated from the host contracts, the total proceeds received are first allocated to the fair value of the derivative financial instruments determined using the binomial model. The remaining proceeds, if any, are then allocated to the debenture cost contracts, usually resulting in those instruments being recorded at a discount from their principal amount. This discount is accreted over the expected life of the instruments to profit (loss) using the effective interest method. The debenture host contracts are subsequently recorded at amortized cost at each reporting date, using the effective interest method. The embedded derivatives are subsequently recorded at fair value at each reporting date, with changes in fair value recognized in profit (loss). The Company presents its embedded derivatives and related debenture host contracts as separate instruments on the consolidated balance sheets. |
Note 4 - New and Recently Adopt
Note 4 - New and Recently Adopted Technical and Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 4 - New and Recently Adopted Technical and Accounting Pronouncements | 4. New and recently adopted technical and accounting pronouncements The Company adopted ASU 2016-02 effective July 1, 2019. ASU 2016-02 requires lessees to recognize most leases on the balance sheet to reflect the right to use an asset for a period of time and an associated lease liability for payments. The Company has applied ASU 2016-02 in accordance with the modified retrospective approach only to contracts that were previously identified as leases. Contracts that were not identified as leases under previous standards were not reassessed for whether there is a lease. Therefore, the definition of a lease under ASU 2016-02 was applied only to contacts entered into or changed on or after July 1, 2019. There is no change to the comparative periods or transitional adjustments required as a result of the adoption of this standard using the modified retrospective approach. The aggregate lease liability recognized in the statement of financial position at July 1, 2019 and Company's operating lease commitment at July 1, 2019 can be reconciled as follows: Operating lease commitment as at July 1, 2019 370,711 Effect of discounting at the incremental borrowing rate (51,578) Total lease liability as at July 1, 2019 319,133 The weighted average incremental borrowing rate applied to lease liability on July 1, 2019 was 10%. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The pronouncement revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. The guidance is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the potential impact of this guidance on the consolidated financial statements. |
Note 5 - Restatement of previou
Note 5 - Restatement of previously issued financial statements | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 5 - Restatement of previously issued financial statements | 5. Restatement of previously issued financial statements In November 2020, it was determined that the Company has underaccrued for invoices issued by the United States Environmental Protection Agency ("EPA") for excess water treatment costs relating to years ended June 30, 2018, 2019 and 2020, interest payable on the outstanding EPA balance, and for a finder's fee related to the Company's February 2020 private placement, which resulted in an understatement of liabilities for 2019 and 2020, an overstatement of additional paid-in-capital for 2020, an understatement of opening and closing deficit for 2019 and 2020, and an understatement of exploration expenses and net losses for 2019 and 2020. The following table present the impact of the restatement adjustments on the Company's previously issued consolidated financial statements for the years ended June 30, 2019 and 2020. Impact to Consolidated Statements of Loss and Comprehensive Loss Year ended June 30, 2019 As previously reported Adjustment As restated Exploration $ 5,712,238 $ 704,495 $ 6,416,733 Loss from operations $ (7,409,431) $ (704,495) $ (8,113,926) Loss before income tax and net loss and comprehensive loss for the year $ (7,737,825) $ (704,495) $ (8,442,320) Net loss per common share - basic and fully diluted $ (1.96) $ (0.18) $ (2.14) Year ended June 30, 2020 As previously reported Adjustment As restated Exploration $ 7,951,423 $ 694,008 $ 8,645,431 Loss from operations $ (10,099,815) $ (694,008) $ (10,793,823) Loss before income tax and net loss and comprehensive loss for the year $ (30,627,783) $ (694,008) $ (31,321,791) Net loss per common share - basic and fully diluted $ (0.46) $ (0.01) $ (0.47) Impact to Consolidated Balance Sheets As at June 30, 2019 As previously reported Adjustment As restated Accounts payable $ 2,170,398 $ 1,251,227 $ 3,421,625 Total current liabilities $ 7,069,564 $ 1,251,227 $ 8,320,791 Total liabilities $ 7,186,373 $ 1,251,227 $ 8,437,600 Deficit accumulated during exploration stage $ (31,351,401) $ (1,251,227) $ (32,602,628) Total shareholders' deficiency $ (6,959,283) $ (1,251,227) $ (8,210,510) As at June 30, 2020 As previously reported Adjustment As restated Accounts payable $ 3,431,699 $ 958,265 $ 4,389,964 Accrued liabilities $ 6,149,448 $ 1,066,666 $ 7,216,114 Total current liabilities $ 13,073,363 $ 2,024,931 $ 15,098,294 Total liabilities $ 31,949,872 $ 2,024,931 $ 33,974,803 Additional paid-in-capital $ 30,212,754 $ (79,696) $ 30,133,058 Deficit accumulated during exploration stage $ (61,979,184) $ (1,945,235) $ (63,924,419) Total shareholders' deficiency $ (31,216,988) $ (2,024,931) $ (33,241,919) Impact to Consolidated Statements of Cash Flows Year ended June 30, 2019 As previously reported Adjustment As restated Net loss for the year $ (7,737,825) $ (704,495) $ (8,442,320) Changes in operating assets and liabilities: Accounts payable $ 1,966,144 $ 704,495 $ 2,670,639 Year ended June 30, 2020 As previously reported Adjustment As restated Net loss for the year $ (30,627,783) $ (694,008) $ (31,321,791) Changes in operating assets and liabilities: Accounts payable $ 1,852,650 $ (372,658) $ 1,479,992 Accrued liabilities $ 3,253,423 $ 1,066,666 $ 4,320,089 Impact to Consolidated Statements of Changes in Shareholders' Deficiency As previously reported Adjustment As restated Deficit accumulated during the exploration stage, June 30, 2018 $ (23,613,576) $ (546,732) $ (24,160,308) Balance, Total, June 30, 2018 $ (216,314) $ (546,732) $ (763,046) Net loss for the year ended June 30, 2019 $ (7,737,825) $ (704,495) $ (8,442,320) Deficit accumulated during the exploration stage, June 30, 2019 $ (31,351,401) $ (1,251,227) $ (32,602,628) Balance, Total, June 30, 2019 $ (6,959,283) $ (1,251,227) $ (8,210,510) Issue costs $ (256,784) $ (79,696) $ (336,480) Net loss for the year ended June 30, 2020 $ (30,627,783) $ (694,008) $ (31,321,791) Deficit accumulated during the exploration stage, June 30, 2020 $ (61,979,184) $ (1,945,235) $ (63,924,419) Balance, Total, June 30, 2020 $ (31,216,988) $ (2,024,931) $ (33,241,919) The circumstances associated with the adjustments also created errors in each of the previously reported quarters in 2019 and 2020, which have also been restated on a quarterly basis as disclosed in note 20. |
Note 6 - Equipment
Note 6 - Equipment | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 6 - Equipment | 6. Equipment Equipment consists of the following: June 30, 2020 June 30, 2019 Leasehold improvements $ - 59,947 Equipment 228,578 9,050 228,578 68,997 Less accumulated depreciation (20,768) (16,947) Equipment, net $ 207,810 $ 52,050 |
Note 7 - Right-of-use asset
Note 7 - Right-of-use asset | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 7 - Right-of-use asset | 7. Right-of-use asset Right-of-use asset consists of the following: June 30, 2020 June 30, 2019 Office lease $ 319,133 - Less accumulated depreciation (106,378) - Right-of-use asset, net $ 212,755 $ - |
Note 8 - Mining Interests
Note 8 - Mining Interests | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 8 - Mining Interests | 8. Mining interests (restated) Bunker Hill Mine Complex On November 27, 2016, the Company entered into a non-binding letter of intent with Placer Mining Corp. (“Placer Mining”), which letter of intent was further amended on March 29, 2017, to acquire the Bunker Hill Mine in Idaho and its associated milling facility located in Kellogg, Idaho, in the Coeur d’Alene Basin (the “Letter of Intent”). Pursuant to the terms and conditions of the Letter of Intent, the acquisition, which was subject to due diligence, would include all mining claims, surface rights, fee parcels, mineral interests, existing infrastructure, machinery and buildings at the Kellogg Tunnel portal in Milo Gulch, or anywhere underground at the Bunker Hill Mine Complex. The acquisition would also include all current and historic data relating to the Bunker Hill Mine Complex, such as drill logs, reports, maps, and similar information located at the mine site or any other location. During the year ended June 30, 2017, the Company made payments totaling $300,000 as part of this Letter of Intent. These amounts were initially capitalized and subsequently written off during fiscal 2018 and were included in exploration expenses. On August 28, 2017, the Company announced that it signed a definitive agreement (the “Agreement”) for the lease and option to purchase the Bunker Hill Mine assets (the “Bunker Assets”). Under the terms of the Agreement, the Company was required to make a $1 million bonus payment to Placer Mining no later than October 31, 2017, which payment was made, along with two additional $500,000 bonus payments in December 2017. The 24-month lease commences November 1, 2017 and continues until October 31, 2019. The lease period can be extended by a further 12 months at the Company’s discretion. During the term of the lease, the Company must make $100,000 monthly mining lease payments, paid quarterly. The Company had an option to purchase the Bunker Assets at any time before the end of the lease and any extension for a purchase price of $45 million with purchase payments to be made over a ten-year period to Placer Mining. Under terms of the agreement, there is a 3% net smelter return royalty (“NSR”) on sales during the Lease and a 1.5% NSR on the sales after the purchase option is exercised, which post-acquisition NSR is capped at $60 million. On October 2, 2018, the Company announced that it was in default of its Lease with Option to Purchase Agreement with Placer Mining. The default arose as a result of missed lease and operating cost payments, totaling $400,000, which were due at the end of September and on October 1, 2018. As per the Agreement, the Company had 15 days, from the date notice of default was provided (September 28, 2018), to remediate the default by making the outstanding payment. While Management worked with urgency to resolve this matter, Management was ultimately unsuccessful in remedying the default, resulting in the lease being terminated. On November 13, 2018, the Company announced that it was successful in renewing the lease, effectively with the original Agreement intact, except that monthly payments are reduced to $60,000 per month for 12 months, with the accumulated reduction in payments of $140,000 per month (“deferred payments”) being accrued. As at June 30, 2020, the Company has accrued for a total of $1,847,300 (June 30, 2019 - $1,373,000), which is included in accounts payable. These deferred payments will be waived should the Company choose to exercise its option. On October 22, 2019, the Company signed a further amendment to the Agreement. The key terms of this amended agreement are as follows: · · · In addition to the payments to Placer Mining, and pursuant to an agreement with the United States Environmental Protection Agency (“EPA”) whereby for so long as Bunker leases, owns and/or occupies the Bunker Hill Mine, the Company will make payments to the EPA on behalf of the current owner in satisfaction of the EPA’s claim for cost recovery. These payments, if all are made, will total $20 million. The agreement calls for payments starting with $1 million 30 days after a fully ratified agreement was signed followed by a payment schedule detailed below: Date Amount Action Within 30 days of the effective date $1,000,000 Paid November 1, 2018 $2,000,000 Not paid November 1, 2019 $3,000,000 Not paid November 1, 2020 $3,000,000 November 1, 2021 $3,000,000 November 1, 2022 $3,000,000 November 1, 2023 $3,000,000 November 1, 2024 $2,000,000 In addition to these cost recovery payments, the Company is to make semi-annual payments of $480,000 on June 1 and December 1 of each year, to cover the EPA’s costs of operating and maintaining the water treatment facility that treats the water being discharged from the Bunker Hill Mine. Of these, the December 1, 2018, and June 1, 2019 semi-annual water treatment payments were not made, totaling $960,000 outstanding as at June 30, 2020 (June 30, 2019 - $560,000). The Company also has received invoices from the EPA for water treatment charges for the periods from December 2017 to October 2019. This was for a total of $3,749,388, with $2,229,408 outstanding as at June 30, 2020 (June 30, 2019 - $1,209,530). The Company is having discussions with the EPA to review and, where appropriate, have the additional water treatment charges amended. The unpaid EPA balance is subject to interest at the rate specified for interest on investments of the EPA Hazardous Substance Superfund. As at June 30, 2020, the interest accrued on the unpaid EPA balance is $89,180 (June 30, 2019 - $13,061). For 2020, the Company has accrued an estimate for additional water treatment charges based on invoices for 2018 and 2019 received from the EPA, for a total of an additional semi-annual accrual of $799,998. The Company has included all unpaid and accrued EPA payments and accrued interest in accounts payable and accrued liabilities amounting to $7,905,235 (June 30, 2019 - $3,811,227). |
Note 9 - Convertible Loan Payab
Note 9 - Convertible Loan Payable | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 9 - Convertible Loan Payable | 9. Convertible loan payable On June 13, 2018, the Company entered into a loan and warrant agreement with Hummingbird Resources PLC (“Hummingbird”), an arm’s length investor, for an unsecured convertible loan in the aggregate sum of $1,500,000, bearing interest at 10% per annum, maturing in one year. Contemporaneously, the Company agreed to issue 229,464 share purchase warrants, entitling the lender to acquire 229,464 common shares of the Company, at a price of C$8.50 per share, for two years. Under the terms of the loan agreement, the lender may, at any time prior to maturity, convert any or all of the principal amount of the loan and accrued interest thereon, into common shares of the Company at a price per share equal to C$8.50. In the event that a notice of conversion would result in the lender holding 10% or more of the Company’s issued and outstanding shares, then, in the alternative, and under certain circumstances, the Company would be required to pay cash to the lender in an amount equal C$8.50 multiplied by the number of shares intended to be issued upon conversion. Further, in the event that the lender holds more than 5% of the issued and outstanding shares of the Company subsequent to the exercise of any of its convertible securities held under this placement, it shall have the right to appoint one director to the board of the Company. Lastly, among other things, the loan agreement further provides that for as long as any amount is outstanding under the convertible loan, the investor retains a right of first refusal on any Company financing or joint venture/strategic partnership/disposal of assets. In August 2018, the amount of the Hummingbird convertible loan payable was increased to $2 million from its original $1.5 million loan, net of $45,824 of debt issue costs. An additional 116,714 warrants with each warrant exercisable at C$4.50 were issued. Under the terms of the Amended and Restated Loan Agreement, Hummingbird may, at any time prior to maturity, convert any or all of the principal amount of the loan and accrued interest thereon, into common shares of Bunker as follows: (i) $1,500,000, being the original principal amount (“Principal Amount”), the Principal Amount may be converted at a price per share equal to C$8.50; (ii) 229,464 common shares may be acquired upon exercise of warrants at a price of C$8.50 per warrant for a period of two years from the date of issuance; (iii) $500,000, being the additional principal amount (“Additional Amount”), may be converted at a price per share equal to C$4.50; and (iv) 116,714 common shares may be acquired upon exercise of warrants at a price of C$4.50 per warrant for a period of two years from the date issuance. In the event that Hummingbird would acquire common shares in excess of 9.999% through the conversion of the Principal Amount or Additional Amount, including interest accruing thereon, or on exercise of the warrants as disclosed herein, the Company shall pay to Hummingbird a cash amount equal to the common shares exercised in excess of 9.999%, multiplied by the conversion price. During the year ended June 30, 2019, Hummingbird agreed to extend the scheduled maturity date of the loan to June 30, 2020. This was accounted for as a loan extinguishment which resulted in the recording of a net loss on loan extinguishment of $1,195,880. In June 2019, the Company settled $100,000 of the Additional Amount by issuing 2,660,000 shares, which resulted in the recording of a net loss on loan extinguishment of $8,193. In February 2020, the Company settled $300,000 of the Additional Amount by issuing 696,428 shares, which resulted in the recording of a net loss on loan extinguishment of $9,407. In June 2020, Hummingbird agreed to extend the scheduled maturity date of the loan to July 31, 2020. An extension of the loan is being negotiated and the loan has not been repaid. The Company has accounted for the conversion features and warrants in accordance with ASC Topic 815. The conversion features and warrants are considered derivative financial liabilities as they are convertible into common shares at a conversion price denominated in a currency other than the Company’s functional currency of the US dollar. The estimated fair value of the conversion features and warrants was determined on the date of issuance and marks to market at each financial reporting period. At June 30, 2020, the fair value of the conversion features were estimated using the Binomial model to determine the fair value of conversion features using the following assumptions: Principal Amount June 30, 2019 June 30, 2020 Expected life 365 days 31 days Volatility 100% 100% Risk free interest rate 1.75% 1.52% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $0 $0 Change in derivative liability $0 Additional Amount June 30, 2019 June 30, 2020 Expected life 365 days 31 days Volatility 100% 100% Risk free interest rate 1.75% 1.23% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $0 $0 Change in derivative liability $0 The fair value of the warrants were estimated using the Binomial model to determine the fair value of the derivative warrant liabilities using the following assumptions: Principal Amount June 30, 2019 June 30, 2020 Expected life 349 days Expired Volatility 100% Risk free interest rate 1.95% Dividend yield 0% Share price $0.05 Fair value $0 $0 Change in derivative liability $0 Additional Amount June 30, 2019 June 30, 2020 Expected life 405 days 40 days Volatility 100% 100% Risk free interest rate 1.84% 1.49% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $0 $0 Change in derivative liability $0 Accretion expense for the year ended June 30, 2020 was $146,266 (year ended June 30, 2019 - $734,589) based on effective interest rate of 16% after the loan extension. Interest expense for the year ended June 30, 2020 was $179,726 (year ended June 30, 2019 - $198,219). As at June 30, 2020, the Company has an outstanding interest payable of $381,233 (June 30, 2019 - $201,507). Amount Balance, June 30, 2018 $ 70,820 Proceeds on issuance 500,000 Debt issue costs (238,455) Conversion feature valuation (205,444) Warrant valuation (221,256) Accretion expense 734,589 Loss on loan extinguishment 1,204,073 Partial extinguishment (100,000) Balance, June 30, 2019 $ 1,744,327 Accretion expense 146,266 Loss on loan extinguishment 9,407 Partial extinguishment (300,000) Balance, June 30, 2020 $ 1,600,000 |
Note 10 - Promissory Notes Paya
Note 10 - Promissory Notes Payable | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 10 - Promissory Notes Payable | 10. Promissory notes payable (i) On November 13, 2019, the Company issued a promissory note in the amount of $300,000. The note is unsecured, bears interest of 1% monthly, and is due on demand after 90 days from issuance. In consideration for the loan, the Company issued 400,000 common share purchase warrants to the lender. Each whole warrant entitles the lender to acquire one common share of the Company at a price of C$0.80 per share for a period of two years. On April 24, 2020, the Company extended the maturity date of the promissory note payable to August 1, 2020. In consideration, the Company issued 400,000 common share purchase warrants to the lender at an exercise price of C$0.50. The warrants expire on November 13, 2021. This was accounted for as a loan modification. The Company has accounted for the warrants in accordance with ASC Topic 815. The warrants are considered derivative financial liabilities as they are convertible into common shares at a conversion price denominated in a currency other than the CompanyÂ’s functional currency of the US dollar. The estimated fair value of the warrants was determined on the date of issuance and marks to market at each financial reporting period. The fair value of the warrants were estimated using the Binomial model to determine the fair value of the derivative warrant liabilities using the following assumptions: November 2019 issuance November 14, 2019 June 30, 2020 Expected life 731 days 501 days Volatility 100% 100% Risk free interest rate 1.53% 0.94% Dividend yield 0% 0% Share price $0.53 $0.73 Fair value $106,622 $150,161 Change in derivative liability $(43,539) April 2020 issuance April 24, 2020 June 30, 2020 Expected life 568 days 501 days Volatility 100% 100% Risk free interest rate 0.33% 0.30% Dividend yield 0% 0% Share price $0.46 $0.73 Fair value $99,901 $186,410 Change in derivative liability $(86,509) Accretion expense for the year ended June 30, 2020 was $155,001 (year ended June 30, 2019 - $-nil) based on effective interest rate of 11% after the loan extension. Interest expense for the year ended June 30, 2020 was $22,700 (year ended June 30, 2019 - $-nil). As at June 30, 2020, the Company has an outstanding interest payable of $22,700 (June 30, 2019 - $nil). Amount Balance, June 30, 2019 $ - Proceeds on issuance 300,000 Warrant valuation (206,523) Accretion expense 155,001 Balance, June 30, 2020 $ 248,478 (ii) On December 31, 2019, the Company issued a promissory note in the amount of $82,367 (C$107,000). The note bears no interest and is due on demand. This promissory note has been repaid. (iii) On January 29, 2020, the Company issued a promissory note in the amount of $75,727 (C$100,000). The note bears no interest and is due on demand. This promissory note has been repaid. (iv) On May 12, 2020, the Company issued a promissory note in the amount of $362,650 (C$500,000), net of $89,190 of debt issue costs. The note bears no interest is due on demand after 90 days after the issue date. Subsequent to June 30, 2020, C$288,000 was settled by shares and the remaining balance was repaid in full. Accretion expense for the year ended June 30, 2020 was $41,453 (year ended June 30, 2019 - $nil) based on effective interest rate of 7%. (v) On May 12, 2020, the Company issued a promissory note in the amount of $141,704 (C$200,000), net of $35,676 of debt issue costs. The note bears no interest is due on demand after 90 days after the issue date. The promissory note was settled in full by shares issued subsequent to June 30, 2020 (see note 19). Accretion expense for the year ended June 30, 2020 was $16,547 (year ended June 30, 2019 - $nil) based on effective interest rate of 8%. (vi) On June 30, 2020, the Company issued a promissory note in the amount of $75,000 ($103,988), net of $15,000 of debt issue costs. The note bears no interest and is due on demand. The promissory note was repaid in full subsequent to June 30, 2020. Financing cost for the year ended June 30, 2020 was $15,000 (year ended June 30, 2019 - $nil). (vii) On June 30, 2020, the Company issued a promissory note in the amount of $75,000 ($103,988) to a director of the Company. The note bears no interest and is due on demand. The promissory note was repaid in full subsequent to June 30, 2020. Financing cost for the year ended June 30, 2020 was $15,000 (year ended June 30, 2019 - $nil). |
Note 11 - Lease liability
Note 11 - Lease liability | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 11 - Lease liability | 11. Lease liability The Company has an operating lease for office space that expires in 2022. Below is a summary of the Company's lease liability as of June 30, 2020: Office lease Balance, June 30, 2019 $ - Addition 319,133 Interest expense 27,062 Lease payments (120,690) Foreign exchange gain (10,766) Balance, June 30, 2020 214,739 Less: current portion (102,027) Long-term lease liability $ 112,712 In addition to the minimum monthly lease payments of C$13,504, the Company is required to make additional payments amounting to C$12,505 for certain variable costs. The schedule below represents the Company's obligations under the lease agreement in Canadian dollars. Less than 1 year 1-2 years 2-3 years Total Base rent $ 162,048 $ 148,544 $ - $ 310,592 Additional rent 150,060 137,555 - 287,615 $312,108 $ 286,099 $ - $ 598,207 The monthly rental expenses are offset by rental income obtained through a series of subleases held by the Company. |
Note 12 - Capital Stock, Warran
Note 12 - Capital Stock, Warrants and Stock Options | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 12 - Capital Stock, Warrants and Stock Options | 12. Capital stock, warrants and stock options Authorized The total authorized capital is as follows: · · On May 23, 2019, the Company affected a consolidation of its issued and outstanding share capital on the basis of one (1) post-consolidation share for each ten (10) pre-consolidation common shares, which has been retrospectively applied in these consolidated financial statements. On July 19, 2019, the Company amended its articles of incorporation to change the total authorized capital and the par values, which have been retrospectively applied in these consolidated financial statements. Issued and outstanding In August 2018, the Company closed a private placement, issuing 160,408 Units to Gemstone 102 Ltd. (“Gemstone”) at a price of C$4.50 per Unit, for gross proceeds of C$721,834 ($549,333) and incurring financing costs of $25,750. Each Unit entitles Gemstone to acquire one common share (“Unit Share”) and one common share purchase warrant (“Unit Warrant”), with each Unit Warrant entitling Gemstone to acquire one common share of the Company at a price of C$4.50 for a period of three years. Prior to the issuance of the Units, Gemstone held 400,000 common shares of the Company and 200,000 warrants (“Prior Warrants”) exercisable at a price of C$20.00 per share. Immediately prior to closing, the Prior Warrants were early terminated by mutual agreement of the Company and Gemstone. Upon issuance of the 160,408 Units to Gemstone, Gemstone beneficially owns or exercises control or direction over 560,408 common shares of the Company. Assuming exercise of the Unit Warrants, Gemstone would hold 720,816 of the outstanding common shares of the Company. Gemstone’s participation in the Offering constitutes a "related party transaction" under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Given the urgent need to secure financing to meet the new lease obligations, Bunker’s Board approved an equity private placement of Units to be sold at C$0.75 per Unit with each Unit consisting of one common share and one common share purchase warrant. On November 28, 2018, the Company closed on a total of 645,866 Units for gross proceeds of C$484,400 ($365,341) and incurring financing costs of $10,062, with each purchase warrant exercisable into a Common Share at C$1.00 per Common Share for a period of thirty-six months. On June 27, 2019, the Company closed the first tranche ("First Tranche") of a non-brokered private placement, issuing 11,660,000 units ("June 2019 Unit") at a price of C$0.05 per June 2019 Unit for gross proceeds of C$583,000 ($436,608) and incurring financing costs of $19,640. Each June 2019 Unit consists of one common share of the Company and one common share purchase warrant ("June 2019 Warrant"). Each whole June 2019 Warrant entitles the holder to acquire one common share at a price of C$0.25 per common share for a period of two years. As a part of the First Tranche, Hummingbird Resources PLC ("Hummingbird") has acquired 2,660,000 June 2019 Units for C$133,000 ($100,000) which was applied to reduction of the principal amount owing under the convertible loan facility (see note 9). On August 1, 2019, the Company closed the second and final tranche ("Tranche Two") of the non-brokered private placement, issuing 6,042,954 units ("August 2019 Units") at C$0.05 per August 2019 Unit for gross proceeds of C$302,148 ($228,202) and incurring financing costs of $36,468. Each August 2019 Unit consists of one common share of the Company and one common share purchase warrant, which entitles the holder to acquire one common share at a price of C$0.25 per common share for a period of two years. The Company also issued 16,962,846 August 2019 Units to settle $640,556 of debt at a deemed price of C$0.09 based on the fair value of the shares issued. As a result, the Company recorded resulting in loss on debt settlement of $858,495. On August 23, 2019, the Company closed the first tranche (the "First Tranche") of the non-brokered private placement, issuing 27,966,002 common shares of the Company at C$0.05 per share for gross proceeds of C$1,398,300 ($1,049,974) and incurring financing costs of $28,847. The Company also issued 2,033,998 common shares to settle $77,117 of debt at a deemed price of C$0.18 based on the fair value of the shares issued. As a result, the Company recorded a loss on debt settlement of $197,800. On August 30, 2019, the Company closed the second and final tranche (the "Second Tranche") of the non-brokered private placement, issuing 1,000,000 common shares at C$0.05 per share for gross proceeds of C$50,000 ($37,550). On February 26, 2020, the Company closed a non-brokered private placement, issuing 2,991,073 common shares of the Company at C$0.56 per share for gross proceeds of C$1,675,000 ($1,256,854) and incurring financing costs of $95,763 (restated) and 239,284 broker warrants. Each broker warrant entitles the holder to acquire one common share at a price of C$0.70 per common share for a period of two years. The Company also issued 696,428 common shares for $300,000 which was applied to reduce the principal amount owing under the convertible loan facility (see note 9). On May 12, 2020, the Company closed a non-brokered private placement, issuing 107,143 common shares of the Company at C$0.56 per share for gross proceeds of C$60,000 ($44,671). During the year ended June 30, 2020, the Company issued 1,403,200 June 2019 Units and 1,912,000 August 2019 Units at a deemed price of C$0.05 as finder's fees with a total value of C$165,760 ($125,180) to a shareholder of the Company. As at June 30, 2020, the Company received cash proceeds of $549,363 for a private placement that closed subsequent to June 30, 2020 (see note 19). For each financing, the Company has accounted for the warrants in accordance with ASC Topic 815. The warrants are considered derivative instruments as they were issued in a currency other than the Company’s functional currency of the US dollar. The estimated fair value of warrants accounted for as liabilities was determined on the date of issue and marks to market at each financial reporting period. The change in fair value of the warrant is recorded in the consolidated statement of operations and comprehensive loss as a gain or loss and is estimated using the Binomial model. The fair value of the warrant liabilities related to the various tranches of warrants issued during the period were estimated using the Binomial model to determine the fair value using the following assumptions on the day of issuance and as at June 30, 2020: August 2019 issuance August 1, 2019 June 30, 2020 Expected life 731 days 397 days Volatility 100% 100% Risk free interest rate 1.59% 1.11% Dividend yield 0% 0% Share price $0.07 $0.73 Fair value $468,227 $11,631,921 Change in derivative liability $(11,163,694) The warrant liabilities as a result of the December 2017, August 2018, November 2018, and June 2019 private placements were revalued as at June 30, 2020 and June 30, 2019 using the Binomial model and the following assumptions: December 2017 issuance June 30, 2019 June 30, 2020 Expected life 532 days 166 days Volatility 100% 100% Risk free interest rate 1.66% 0.69% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $0 $0 Change in derivative liability $0 August 2018 issuance June 30, 2019 June 30, 2020 Expected life 771 days 405 days Volatility 100% 100% Risk free interest rate 1.59% 1.20% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $0 $6,132 Change in derivative liability $(6,132) November 2018 issuance June 30, 2019 June 30, 2020 Expected life 882 days 516 days Volatility 100% 100% Risk free interest rate 1.47% 1.34% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $1,875 $206,253 Change in derivative liability $(204,378) June 2019 issuance June 30, 2019 June 30, 2020 Expected life 727 days 363 days Volatility 100% 100% Risk free interest rate 1.47% 1.15% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $114,934 $6,582,920 Change in derivative liability $(6,467,986) Warrants Number of warrants Weighted average exercise price (C$) Weighted average Grant date Value ($) Balance, June 30, 2018 663,496 $ 16.02 $ 6.13 Issued 12,582,988 0.38 0.07 Cancelled (200,000) 20.00 7.50 Balance, June 30, 2019 13,046,484 $ 0.88 $ 0.27 Issued 27,360,284 0.27 0.03 Expired (229,464) 8.50 3.54 Exercised (i) (2,332,900) 0.25 0.02 Balance, June 30, 2020 37,844,404 $ 0.43 $ 0.09 (i) During the year ended June 30, 2020, 2,332,900 warrants were exercised at C$0.25 per warrant for gross proceeds of C$583,225 ($417,006). In conjunction with the exercise of warrants, the Company recognized a change in derivative liability of $871,710. Expiry date Exercise price (C$) Number of warrants Number of warrants exercisable December 5, 2020 20.00 227,032 227,032 December 13, 2020 20.00 7,000 7,000 August 9, 2021 4.50 116,714 116,714 August 9, 2021 4.50 160,408 160,408 November 28, 2021 1.00 645,866 645,866 June 27, 2021 0.25 11,660,000 11,660,000 August 1, 2021 0.25 20,672,900 20,672,900 November 13, 2021 0.80 400,000 400,000 November 13, 2021 0.50 400,000 400,000 August 1, 2021 0.25 763,200 763,200 August 26, 2021 0.05 1,912,000 1,912,000 February 7, 2022 0.25 640,000 640,000 February 26, 2022 0.70 239,284 239,284 37,844,404 37,844,404 Stock options The following table summarizes the stock option activity during the years ended June 30, 2020: Number of stock options Weighted average exercise price (C$) Balance, June 30, 2018 287,100 $ 7.50 Granted (i) 43,750 8.00 Exercised (43,750) 8.00 Balance, June 30, 2019 287,100 $ 7.50 Granted (ii) 7,532,659 0.56 Forfeited (239,600) 9.78 Balance, June 30, 2020 7,580,159 $ 0.62 (i) On September 27, 2018, 43,750 fully-vested stock options were issued to a consultant to whom C$350,000 was due and payable and reflected in accrued liabilities at September 30, 2018. These options had a 5-year life and were exercisable at C$8.00 per share. On October 3, 2018, these options were exercised in full, with consideration received being the liability already on the Company’s books, extinguishing the liability in full. The grant date fair value of the options was estimated at $43,893. The vesting of these options resulted in stock-based compensation of $nil for the year ended June 30, 2020 (year ended June 30, 2019 - $43,893), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss. (ii) On October 24, 2019, 1,575,000 stock options were issued to directors and officers of the Company. These options have a 5-year life and are exercisable at C$0.60 per share. The grant date fair value of the stock options was estimated at $435,069. The vesting of these options resulted in stock-based compensation of $309,211 for the year ended June 30, 2020 (year ended June 30, 2019 - $nil), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss. (iii) On April 20, 2020, 5,957,659 stock options were issued to certain directors of the Company. Each stock option entitles the holder to acquire one common share of the Company at an exercise price of C$0.55. The stock options vest in one fourth increments upon each anniversary of the grant date and expire in 5 years. The grant date fair value of the stock topions were estimated at $1,536,764. The vesting of these options results in stock-based compensation of $162,855 (year ended June 30, 2019 - $nil), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss. The fair value of these stock options was determined on the date of grant using the Black-Scholes valuation model, and using the following underlying assumptions: Risk free interest rate Dividend yield Volatility Stock price Weighted average life (i) 2.32% 0% 100% C$2.30 5 years (ii) 1.54% 0% 100% C$0.50 5 years (iii) 0.44% 0% 100% C$0.50 5 years The following table reflects the actual stock options issued and outstanding as of June 30, 2020: Exercise price (C$) Weighted average remaining contractual life (years) Number of options outstanding Number of options vested (exercisable) Grant date fair value ($) 10.00 1.84 40,000 40,000 217,274 16.50 2.44 7,500 7,500 40,739 0.60 4.32 1,575,000 675,000 435,069 0.55 4.81 5,957,659 - 1,536,764 7,580,159 722,500 2,229,846 |
Note 13 - Restricted share unit
Note 13 - Restricted share units | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 13 - Restricted share units | 13. Restricted share units Effective March 25, 2020, the Board of Directors approved a Restricted Share Unit ("RSU") Plan to grant RSUs to its officers, directors, key employees and consultants. The following table summarizes the RSU activity during the years ended June 30, 2020: Number of shares Weighted average grant date fair value per share (C$) Unvested as at June 30, 2018 and June 30, 2019 - $ - Granted (i)(ii) 600,000 0.40 Unvested as at June 30, 2020 600,000 $ 0.40 (i) On April 20, 2020, the Company granted 400,000 RSUs to a certain officer of the Company. The RSUs vest in one fourth increments upon each anniversary of the grant date and expire in 5 years. The vesting of these RSUs results in stock-based compensation of $17,384 (year ended June 30, 2019 - $nil), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss. (ii) On April 20, 2020, the Company granted 200,000 RSUs to a certain director of the Company. The RSUs vest in one fourth increments upon each anniversary of the grant date and expire in 5 years. The vesting of these RSUs results in stock-based compensation of $8,274 (year ended June 30, 2019 - $nil), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss. |
Note 14 - Deferred share units
Note 14 - Deferred share units | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 14 - Deferred share units | 14. Deferred share units Effective April 21, 2020, the Board of Directors approved a Deferred Share Unit ("DSU") Plan to grant DSUs to its directors. The DSU Plan permits the eligible directors to defer receipt of all or a portion of their retainer or compensation until termination of their services and to receive such fees in the form of cash at that time. Upon vesting of the DSUs or termination of service as a director, the director will be able to redeem DSUs based upon the then market price of the Company's common share on the date of redemption in exchange for cash. The following table summarizes the DSU activity during the years ended June 30, 2020: Number of shares Weighted average grant date fair value per share (C$) Unvested as at June 30, 2018 and June 30, 2019 - $ - Granted (i) 7,500,000 0.65 Unvested as at June 30, 2020 7,500,000 $ 0.65 (i) On April 21, 2020, the Company granted 7,500,000 DSUs. The DSUs vest in one fourth increments upon each anniversary of the grant date and expire in 5 years. The vesting of these DSUs results in stock-based compensation of $549,664 (year ended June 30, 2019 - $nil), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss. |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 15 - Commitments and Contingencies | 15. Commitments and contingencies (restated) As stipulated by the agreements with Placer Mining as described in note 8, the Company is required to make monthly payment of $60,000 for care and maintenance and a lease extension fee of $60,000. Including the previously accrued payments, a total of $1,847,300 is payable until the Company decides to acquire the mine at which time these payments will be waived. As stipulated in the agreement with the EPA and as described in note 8, the company is required to make two payments to the EPA, one for cost-recovery, and the other for water treatment. As at June 30, 2020, $7,905,235 payable to the EPA has been included in accounts payable and accrued liabilities. The Company is now engaged with the EPA to amend and defer these payments. The Company has entered into a lease agreement which expires in May 2022. Monthly rental expenses are approximately C$26,000 and are offset by rental income obtained through a series of subleases held by the Company. See note 11. |
Note 16 - Income Taxes
Note 16 - Income Taxes | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 16 - Income Taxes | 16. Income taxes (restated) As at June 30, 2020 and 2019, the Company had no accrued interest and penalties related to uncertain tax positions. The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rates of 26.9% (2019 - 26.9%) to pretax loss from operations for the years ended June 30, 2020 and 2019 due to the following: Year Ended June 30, 2020 Year Ended June 30, 2019 Loss before income taxes, (as restated) $ 31,321,791 $ 8,442,320 Expected income tax recovery (8,425,600) (2,271,000) Other permanent difference 673,000 563,070 Change in valuation allowance 7,752,600 1,707,930 Total $ - $ - Deferred tax assets and the valuation account are as follows: June 30, 2020 June 30, 2019 Deferred tax asset: Net operating loss carry forward $ 6,374,700 $ 4,285,020 Other deferred tax assets 8,916,350 3,392,290 Valuation allowance (15,304,180) (7,687,200) Unrealized foreign exchange loss 13,130 8,870 Equipment - 1,020 Total $ - $ - June 30, 2020 June 30, 2019 Deferred tax asset: Non-capital losses carried forward $ 10,050 $ 1,530,460 Lease liabilities 57,120 - Deferred tax liabilities: Convertible debt - (1,530,460) Equipment (10,050) - Right of use assets and lease obligations (57,120) - Net deferred tax asset $ - $ - The potential income tax benefit of these losses has been offset by a full valuation allowance. As of June 30, 2020, and 2019, the Company has an unused net operating loss carry-forward balance of $25,680,750 and $22,094,056, respectively, that is available to offset future taxable income. The US non-capital loss carryforwards generated before 2018 expire between 2031 and 2037. The losses generated after 2018 do not expire. The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended June 30, 2020, 2019, 2018, 2017, 2016, 2015, 2014, and 2013. |
Note 17 - Related Party Transac
Note 17 - Related Party Transactions | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 17 - Related Party Transactions | 17. Related party transactions During the year ended June 30, 2020, John Ryan (Director and former CEO) billed $51,500, Wayne Parsons (Director and CFO) billed $136,045, Hugh Aird (Director) billed $9,774, Richard Williams (Director and Executive Chairman) billed $134,927, and Sam Ash (President and CEO) billed $60,000 for services to the Company. At June 30, 2020, $121,161 is owed to Mr. Williams and $60,000 is owed to Mr. Ash with all amounts included in accounts payable and accrued liabilities. During the year ended June 30, 2020, the Company issued 1,403,200 June 2019 Units and 1,912,000 August 2019 Units at a deemed price of C$0.05 as finder's fees with a total value of C$165,760 ($125,180) to a shareholder of the Company. |
Note 18 - Financial instruments
Note 18 - Financial instruments | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 18 - Financial instruments | 18. Financial instruments Fair values The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable excluding HST, accounts payable, accrued liabilities, interest payable, convertible loan payable, promissory notes payable, lease liability, and other liabilities, all of which qualify as financial instruments, are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and current market rate of interest. The Company measured its DSU liability at fair value on recurring basis using level 1 inputs and derivative warrant liabilities at fair value on recurring basis using level 3 inputs. There were no transfers of financial instruments between levels 1, 2, and 3 during the years ended June 30, 2020 and 2019. Foreign currency risk Foreign currency risk is the risk that changes the rates of exchange on foreign currencies will impact the financial position of cash flows of the Company. The Company is exposed to foreign currency risks in relation to certain activities that are to be settled in Canadian dollar. Management monitors its foreign currency exposure regularly to minimize the risk of an adverse impact on its cash flows. Concentration of credit risk Concentration of credit risk is the risk of loss in the event that certain counterparties are unable to fulfill its obligations to the Company. The CompanyÂ’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The CompanyÂ’s management also routinely assesses the financial strength and credit worthiness of any parties to which it extends funds and as such, it believes that any associated credit risk exposures are limited. Liquidity risk Liquidity risk is the risk that the Company's consolidated cash flows from operations will not be sufficient for the Company to continue operating and discharge its liabilities. The Company is exposed to liquidity risk as its continued operation is dependent upon its ability to obtain financing, either in the form of debt or equity, or achieving profitable operations in order to satisfy its liabilities as they come due. |
Note 19 - Subsequent Events
Note 19 - Subsequent Events | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 19 - Subsequent Events | 19. Subsequent events (restated) On July 15, 2020, the Company has entered into a loan agreement with an arm’s length third party for an unsecured loan facility of $1,200,000 (the “July 2020 Loan”) due August 31, 2020. As consideration for the July 2020 Loan, the Company has agreed to pay the lender a one-time origination fee of $360,000. The Company repaid the July 2020 Loan in full on maturity. On August 12, 2020, the Company announced that it has extended the lease with Placer Mining for further 18 months for a $150,000 extension fee, in addition to the 6 month extension available for a $60,000 extension fee (see note 7). This extension expires on August 1, 2022. On August 14, 2020, the Company closed the first tranche of the brokered private placement of units of the Company ("August 2020 Offering"), issuing 35,212,142 units of the Company (“August 2020 Units”) at C$0.35 per August 2020 Unit for gross proceeds of $9,301,321 (C$12,324,250). Each August 2020 Unit consisted of one common share of the Company and one common share purchase warrant of the Company (“August 2020 Warrant”), which entitles the holder to acquire a common share of the Company at C$0.50 per common share of the Company until August 31, 2023. In connection with the first tranche, the Company incurred financing costs of $641,493 (C$739,455) and issued 2,112,729 compensation options ("August 2020 Compensation Options"). Each compensation option is exercisable into one August 2020 Unit at an exercise price of C$0.35 until August 31, 2023. On August 25, 2020, the Company closed the second tranche of the August 2020 Offering, issuing 20,866,292 August 2020 Units at C$0.35 per August 2020 Unit for gross proceeds of $5,497,453 (C$7,303,202). In connection with the second tranche, the Company incurred financing costs of $292,377 (C$386,376) and issued 1,127,178 August 2020 Compensation Options. The Company also issued 2,205,714 August 2020 Units to settle $585,115 (C$772,000) of debt. On September 30, 2020, 200,000 stock options were issued to a consultant. Each stock option entitles the holder to acquire one common share of the Company at an exercise price of C$0.60. The stock options vest 50% at 6 months and 50% at 12 months from the grant date and expire in 3 years. On October 9, 2020, the Company settled the full balance of the convertible loan payable to Hummingbird by issuing 5,572,980 shares of the Company. |
Note 20 - Quarterly financial d
Note 20 - Quarterly financial data (unaudited) | 12 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 20 - Quarterly financial data (unaudited) | 20. Quarterly financial data (unaudited) The Company restated its consolidated financial statements as of and for the quarterly periods ended September 30, 2019 and 2018, December 31, 2019 and 2018, and March 31, 2020 and 2019 to correct misstatements, as discussed in note 5 describing the restatement of annual periods. The following tables summarize the impact of the restatement on the Company's unaudited condensed interim consolidated financial statements. Impact to Condensed Interim Consolidated Statements of Loss and Comprehensive Loss Three months ended September 30, 2018 As previously reported Adjustment As restated Exploration $ 810,265 $ 216,622 $ 1,026,887 Total operating expense and loss from operations $ (1,611,333) $ (216,622) $ (1,827,955) Loss before income tax and net loss and comprehensive loss for the period $ (636,490) $ (216,622) $ (853,112) Net loss per common share - basic and fully diluted (*) $ (0.19) $ (0.06) $ (0.25) (*) Adjusted for 10-to-1 share consolidation on May 23, 2019. Three months ended December 31, 2018 As previously reported Adjustment As restated Exploration $ 3,003,911 $ 184,947 $ 3,188,858 Total operating expense and loss from operations $ (3,393,071) $ (184,947) (3,578,018) Loss before income tax and net loss and comprehensive loss for the period $ (3,290,293) $ (184,947) $ (3,475,240) Net loss per common share - basic and fully diluted (*) $ (0.88) $ (0.05) $ (0.93) (*) Adjusted for 10-to-1 share consolidation on May 23, 2019. Six months ended December 31, 2018 As previously reported Adjustment As restated Exploration $ 3,814,176 $ 401,569 $ 4,215,745 Total operating expense and loss from operations $ (5,004,404) $ (401,569) $ (5,405,973) Loss before income tax and net loss and comprehensive loss for the period $ (3,926,783) $ (401,569) $ (4,328,352) Net loss per common share - basic and fully diluted (*) $ (1.10) $ (0.11) $ (1.21) (*) Adjusted for 10-to-1 share consolidation on May 23, 2019. Three months ended March 31, 2019 As previously reported Adjustment As restated Exploration $ 999,602 $ 151,018 $ 1,150,620 Total operating expense and loss from operations $ (1,239,839) $ (151,018) $ (1,390,857) Loss before income tax and net loss and comprehensive loss for the period $ (1,826,405) $ (151,018) $ (1,977,423) Net loss per common share - basic and fully diluted (*) $ (0.44) $ (0.04) $ (0.48) (*) Adjusted for 10-to-1 share consolidation on May 23, 2019. Nine months ended March 31, 2019 As previously reported Adjustment As restated Exploration $ 4,813,778 $ 552,587 $ 5,366,365 Total operating expense and loss from operations $ (6,244,243) $ (552,587) $ (6,796,830) Loss before income tax and net loss and comprehensive loss for the period $ (5,753,188) $ (552,587) $ (6,305,775) Net loss per common share - basic and fully diluted (*) $ (1.53) $ (0.15) $ (1.68) (*) Adjusted for 10-to-1 share consolidation on May 23, 2019. Three months ended September 30, 2019 As previously reported Adjustment As restated Exploration $ 958,804 $ 150,411 $ 1,109,215 Loss from operations $ (1,135,650) $ (150,411) $ (1,286,061) Loss before income tax and net loss and comprehensive loss for the period $ (4,086,289) $ (150,411) $ (4,236,700) Net loss per common share - basic and fully diluted $ (0.09) $ (0.01) $ (0.10) Three months ended December 31, 2019 As previously reported Adjustment As restated Exploration $ 3,985,959 $ 173,133 $ 4,159,092 Loss from operations $ (4,382,308) $ (173,133) $ (4,555,441) Loss before income tax and net loss and comprehensive loss for the period $ (13,330,980) $ (173,133) $ (13,504,113) Net loss per common share - basic and fully diluted $ (0.19) $ - $ (0.19) Six months ended December 31, 2019 As previously reported Adjustment As restated Exploration $ 4,944,763 $ 323,544 $ 5,268,307 Loss from operations $ (5,517,958) $ (323,544) $ (5,841,502) Loss before income tax and net loss and comprehensive loss for the period $ (17,417,269) $ (323,544) $ (17,740,813) Net loss per common share - basic and fully diluted $ (0.31) $ - $ (0.31) Three months ended March 31, 2020 As previously reported Adjustment As restated Exploration $ 730,334 $ 185,407 $ 915,741 Loss from operations $ (1,177,553) $ (185,407) $ (1,362,960) Income (loss) before income tax and net income (loss) and comprehensive income (loss) for the period $ 9,487,004 $ (185,407) $ 9,301,597 Net income (loss) per common share - basic and fully diluted $ 0.13 $ - $ 0.13 Nine months ended March 31, 2020 As previously reported Adjustment As restated Exploration $ 5,675,097 $ 508,951 $ 6,184,048 Loss from operations $ (6,695,511) $ (508,951) $ (7,204,462) Income (loss) before income tax and net income (loss)and comprehensive income (loss) for the period $ (7,930,265) $ (508,951) $ (8,439,216) Net loss per common share - basic and fully diluted $ (0.12) $ (0.01) $ (0.13) Impact to Condensed Interim Consolidated Balance Sheets As at September 30, 2018 As previously reported Adjustment As restated Accounts payable $237,781 $763,354 $1,001,135 Total current liabilities $1,170,752 $763,354 $1,934,106 Total liabilities $1,430,374 $763,354 $2,193,728 Deficit accumulated during exploration stage $(24,250,066) $(763,354) $(25,013,420) Total shareholders' equity (deficiency) $(641,462) (763,354) $(1,404,816) As at December 31, 2018 As previously reported Adjustment As restated Accounts payable $ 975,401 $ 948,301 $ 1,923,702 Total current liabilities $ 3,975,689 $ 948,301 $ 4,923,990 Total liabilities $ 4,101,195 $ 948,301 $ 5,049,496 Deficit accumulated during exploration stage $ (27,540,359) $ (948,301) $ (28,488,660) Total shareholders' deficiency $ (3,572,758) $ (948,301) $ (4,521,059) As at March 31, 2019 As previously reported Adjustment As restated Accounts payable $ 1,785,489 $ 1,099,319 $ 2,884,808 Total current liabilities $ 5,618,921 $ 1,099,319 $ 6,718,240 Total liabilities $ 5,744,427 $ 1,099,319 $ 6,843,746 Deficit accumulated during exploration stage $ (29,366,764) $ (1,099,319) $ (30,466,083) Total shareholders' deficiency $ (5,399,163) $ (1,099,319) $ (6,498,482) As at September 30, 2019 As previously reported Adjustment As restated Accounts payable $ 2,027,170 $ 1,401,638 $ 3,428,808 Total current liabilities $ 7,033,719 $ 1,401,638 $ 8,435,357 Total liabilities $ 9,629,628 $ 1,401,638 $ 11,031,266 Deficit accumulated during exploration stage $ (35,437,690) $ (1,401,638) $ (36,839,328) Total shareholders' deficiency $ (8,596,756) $ (1,401,638) $ (9,998,394) As at December 31, 2019 As previously reported Adjustment As restated Accounts payable $ 2,382,993 $ 1,308,105 $ 3,691,098 Accrued liabilities $ 5,842,809 $ 266,666 $ 6,109,475 Total current liabilities $ 10,756,375 $ 1,574,771 $ 12,331,146 Total liabilities $ 22,250,278 $ 1,574,771 $ 23,825,049 Deficit accumulated during exploration stage $ (48,768,670) $ (1,574,771) $ (50,343,441) Total shareholders' deficiency $ (21,759,966) $ (1,574,771) $ (23,334,737) As at March 31, 2020 As previously reported Adjustment As restated Accounts payable $ 2,346,314 $ 1,173,208 $ 3,519,522 Accrued liabilities $ 5,919,951 $ 666,666 $ 6,586,617 Total current liabilities $ 10,616,583 $ 1,839,874 $ 12,456,457 Total liabilities $ 11,187,555 $ 1,839,874 $ 13,027,429 Additional paid-in-capital $ 28,635,306 $ (79,696) $ 28,555,610 Deficit accumulated during exploration stage $ (39,281,666) $ (1,760,178) $ (41,041,844) Total shareholders' deficiency $ (10,559,438) $ (1,839,874) $ (12,399,312) Impact to Condensed Interim Consolidated Statements of Cash Flows Three months ended September 30, 2018 As previously reported Adjustment As restated Net loss for the period $ (636,490) $ (216,622) $ (853,112) Changes in operating assets and liabilities: Accounts payable $ 12,597 $ 216,622 $ 229,219 Six months ended December 31, 2018 As previously reported Adjustment As restated Net loss for the period $ (3,926,783) $ (401,569) $ (4,328,352) Changes in operating assets and liabilities: Accounts payable $ 770,563 $ 401,569 $ 1,172,132 Nine months ended March 31, 2019 As previously reported Adjustment As restated Net loss for the period $ (5,753,188) $ (552,587) $ (6,305,775) Changes in operating assets and liabilities: Accounts payable $ 1,581,235 $ 552,587 $ 2,133,822 Three months ended September 30, 2019 As previously reported Adjustment As restated Net loss for the period $ (4,086,289) $ (150,411) $ (4,236,700) Changes in operating assets and liabilities: Accounts payable $ 329,138 $ 150,411 $ 479,549 Six months ended December 31, 2019 As previously reported Adjustment As restated Net loss for the period $ (17,417,269) $ (323,544) $ (17,740,813) Changes in operating assets and liabilities: Accounts payable $ 670,380 $ 56,878 $ 727,258 Accrued liabilities $ 3,192,282 $ 266,666 $ 3,458,948 Nine months ended March 31, 2020 As previously reported Adjustment As restated Net loss for the period $ (7,930,265) $ (508,951) $ (8,439,216) Changes in operating assets and liabilities: Accounts payable $ 633,701 $ (157,715) $ 475,986 Accrued liabilities $ 3,269,424 $ 666,666 $ 3,936,090 |
Note 3 - Significant Accounti_2
Note 3 - Significant Accounting Policies: Basis of Consolidation (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Basis of Consolidation | Basis of consolidation These consolidated financial statements include the assets, liabilities and expenses of the Company and its wholly owned subsidiaries, American Zinc Corp. and Bunker Hill Operating LLC. All intercompany transactions and balances have been eliminated on consolidation. |
Note 3 - Significant Accounti_3
Note 3 - Significant Accounting Policies: Cash and cash equivalents (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents may include highly liquid investments with original maturities of three months or less. |
Note 3 - Significant Accounti_4
Note 3 - Significant Accounting Policies: Mineral Rights, Property and Acquisition Costs (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Mineral Rights, Property and Acquisition Costs | Mineral rights, property and acquisition costs The Company has been in the exploration stage since its formation on February 20, 2007 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. The Company capitalizes acquisition and option costs of mineral rights as intangible assets. Upon commencement of commercial production, the mineral rights will be amortized using the unit-of-production method over the life of the mineral rights. If the Company does not continue with exploration after the completion of the feasibility study, the mineral rights will be expensed at that time. The costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred to develop and expand the capacity of mines, or to develop mine areas in advance of production, are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current exploration or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with Accounting Standards Codification (FASB ASC) 360-10-35, Impairment or Disposal of Long-Lived Assets. |
Note 3 - Significant Accounti_5
Note 3 - Significant Accounting Policies: Equipment (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Equipment | Equipment Equipment is stated at cost less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income or gain (expense or loss). The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful lives of equipment or whether the remaining balance of the equipment should be evaluated for possible impairment. If events and circumstances warrant evaluation, the Company uses an estimate of the related undiscounted cash flows over the remaining life of the equipment in measuring their recoverability. |
Note 3 - Significant Accounti_6
Note 3 - Significant Accounting Policies: Lessee, Leases (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Lessee, Leases | Leases Operating lease right of use assets ("ROU") assets represents the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is included in operation and administration expenses in the consolidated statements of loss and comprehensive loss. The Company is required to make additional payments for certain variable costs. These costs are expensed and included in operation and administration expenses in the consolidated statements of loss and comprehensive loss. Rental income obtained through subleases is recorded as income over the lease term and is offset against operation and administration expenses. |
Note 3 - Significant Accounti_7
Note 3 - Significant Accounting Policies: Impairment of Long-lived Assets (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Impairment of Long-lived Assets | Impairment of long-lived assets The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate the related carrying amounts may not be recoverable. The assets are subject to impairment consideration under FASB ASC 360, Property, Plant and Equipment, if events or circumstances indicate that their carrying amount might not be recoverable. When the Company determines that an impairment analysis should be done, the analysis is performed using the rules of FASB ASC 930-360-35, Extractive Activities - Mining, and 360-10-15-3 through 15-5, Impairment or Disposal of Long-Lived Assets. Various factors could impact the CompanyÂ’s ability to achieve forecasted production schedules. Additionally, commodity prices, capital expenditure requirements and reclamation costs could differ from the assumptions the Company may use in cash flow models used to assess impairment. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material can ultimately be mined economically. |
Note 3 - Significant Accounti_8
Note 3 - Significant Accounting Policies: Fair Value of Financial instruments (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Fair Value of Financial instruments | Fair value of financial instruments The Company adopted FASB ASC 820-10, Fair Value Measurement. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: · · · The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable excluding HST, accounts payable, accrued liabilities, interest payable, convertible loan payable, promissory notes payable, lease liability, and other liabilities, all of which qualify as financial instruments, are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and current market rate of interest. The Company measured its DSU liability at fair value on recurring basis using level 1 inputs and derivative warrant liabilities at fair value on recurring basis using level 3 inputs. |
Note 3 - Significant Accounti_9
Note 3 - Significant Accounting Policies: Environmental expentures (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Environmental expentures | Environmental expenditures The operations of the Company have been, and may in the future, be affected from time to time, in varying degrees, by changes in environmental regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The CompanyÂ’s policy is to meet, or if possible, surpass standards set by relevant legislation, by application of technically proven and economically feasible measures. Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized and amortized depending on their future economic benefits. Estimated future reclamation and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries. No costs have been recognized by the Company for environmental expenditures. |
Note 3 - Significant Account_10
Note 3 - Significant Accounting Policies: Income taxes (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Income taxes | Income taxes The Company accounts for income taxes in accordance with Accounting Standard Codification 740, Income Taxes ("FASB ASC 740"), on a tax jurisdictional basis. The Company files income tax returns in the United States. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax bases of assets and liabilities and the consolidated financial statements reported amounts using enacted tax rates and laws in effect in the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is determined to be more likely than not that the deferred tax asset will not be realized. The Company assesses the likelihood of the consolidated financial statements effect of a tax position that should be recognized when it is more likely than not that the position will be sustained upon examination by a taxing authority based on the technical merits of the tax position, circumstances, and information available as of the reporting date. The Company is subject to examination by taxing authorities in jurisdictions such as the United States. Management does not believe that there are any uncertain tax positions that would result in an asset or liability for taxes being recognized in the accompanying consolidated financial statements. The Company recognizes tax-related interest and penalties, if any, as a component of income tax expense. FSAB ASC 740 prescribes recognition threshold and measurement attributes for the consolidated financial statements recognition and measurement of a tax position taken, or expected to be taken, in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in periods, disclosure and transition. At June 30, 2018 and June 30, 2017, the Company has not taken any tax positions that would require disclosure under FASB ASC 740. |
Note 3 - Significant Account_11
Note 3 - Significant Accounting Policies: Basic and diluted net loss per share (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Basic and diluted net loss per share | Basic and diluted net loss per share The Company computes net loss per share of common stock in accordance with FASB ASC 260, Earnings per Share (“ASC 260”). Under the provisions of FASB ASC 260, basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants and the conversion of convertible loan payable. As of June 30, 2020, 7,580,159 stock options and 37,844,404 warrants were considered in the calculation but not included, as they were anti-dilutive (June 30, 2019 - 287,100 stock options and 13,046,484 warrants). |
Note 3 - Significant Account_12
Note 3 - Significant Accounting Policies: Stock-Based compensation (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Stock-Based compensation | Stock-based compensation In December 2004, the FASB issued FASB ASC 718, Compensation – Stock Compensation, which establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. FASB ASC 718 focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. FASB ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the consolidated financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. The Company accounts for stock-based compensation arrangements with non-employees in accordance with ASU 505-50, Equity-Based Payments to Non-Employees, which requires that such equity instruments are recorded at the value on the grant date based on fair value of the equity or goods and services whichever is more reliable. |
Note 3 - Significant Account_13
Note 3 - Significant Accounting Policies: Restricted share units policy (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Restricted share units policy | Restricted share units For Restricted Share Units ("RSUs"), the Company estimates the grant date fair value using the Company's common shares on the Canadian Securities Exchange at the grant date. The Company records the value of the RSUs in paid-in capital. |
Note 3 - Significant Account_14
Note 3 - Significant Accounting Policies: Deferred share units policy (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Deferred share units policy | Deferred share units The Company estimates the grant date fair value of the Deferred Share Units ("DSUs") using the trading price of the Company's common shares on the Canadian Securities Exchange on the day of grant. The Company records the value of the DSUs owing to its directors as DSU liability and measures the DSU liability at fair value at each reporting date, with changes in fair value recognized as stock-based compensation in profit (loss). |
Note 3 - Significant Account_15
Note 3 - Significant Accounting Policies: Use of Estimates and Assumptions (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Use of Estimates and Assumptions | Use of estimates and assumptions Many of the amounts included in the consolidated financial statements require management to make judgments and/or estimates. These judgments and estimates are continuously evaluated and are based on managementÂ’s experience and knowledge of the relevant facts and circumstances. Actual results may differ from the amounts included in the consolidated financial statements. Areas of significant judgment and estimates affecting the amounts recognized in the consolidated financial statements include: Going concern The assessment of the Company's ability to continue as a going concern involves judgment regarding future funding available for its operations and working capital requirements as discussed note 1. Accrued liabilities The Company has to make estimates to accrue for certain expenditures due to delay in receipt of third party vendor invoices. These accruals are made based on trends, history and knowledge of activities. Actual results may be different. Convertible loans, promissory notes and warrants Estimating the fair value of derivative warrant liability and conversion feature derivative liability requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the issuance. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the warrants and conversion feature derivative liability, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value of warrants and conversion feature derivative liability are disclosed in notes 9, 10 and 12. The fair value estimates may differ from actual fair values and these differences may be significant and could have a material impact on the CompanyÂ’s balance sheets and the consolidated statements of operations. Assets are reviewed for an indication of impairment at each reporting date. This determination requires significant judgment. Factors that could trigger an impairment review include, but are not limited to, significant negative industry or economic trends, interruptions in exploration activities or a significant drop in precious metal prices. |
Note 3 - Significant Account_16
Note 3 - Significant Accounting Policies: Concentrations of Credit Risk (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Concentrations of Credit Risk | Concentrations of credit risk The CompanyÂ’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The CompanyÂ’s management also routinely assesses the financial strength and credit worthiness of any parties to which it extends funds and as such, it believes that any associated credit risk exposures are limited. |
Note 3 - Significant Account_17
Note 3 - Significant Accounting Policies: Risks and Uncertainties (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Risks and Uncertainties | Risks and uncertainties The Company operates in the mineralized material exploration industry that is subject to significant risks and uncertainties, including financial, operational, and other risks associated with operating a mineralized material exploration business, including the potential risk of business failure. |
Note 3 - Significant Account_18
Note 3 - Significant Accounting Policies: Foreign Currency Transactions (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Foreign Currency Transactions | Foreign currency transactions The Company from time to time will receive invoices from service providers that are presenting their invoices using the Canadian dollar. The Company will use its US dollars to settle the Canadian dollar liabilities and any differences resulting from the exchange transaction are reported as gain or loss on foreign exchange. |
Note 3 - Significant Account_19
Note 3 - Significant Accounting Policies: Segment Reporting (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Segment Reporting | Segment reporting FASB ASC 280-10, “Disclosures about Segments of an Enterprise and Related Information”, establishes standards for the way that public business enterprises report information about operating segments in the Company’s consolidated financial statements. Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has one operating segment and reporting unit. The Company operates in one reportable business segment and is organized and operated as one business. Management reviews its business as a single operating segment, using financial and other information rendered meaningful only by the fact that such information is presented and reviewed in the aggregate. |
Note 3 - Significant Account_20
Note 3 - Significant Accounting Policies: Convertible Loan Payable (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Policies | |
Convertible Loan Payable | Convertible loans and promissory notes payable The Company reviews the terms of its convertible loans and promissory notes payable to determine whether there are embedded derivatives, including the embedded conversion option, that are required to be bifurcated and accounted for as individual derivative financial instruments. In circumstances where the convertible debt or the promissory note contains embedded derivatives that are to be separated from the host contracts, the total proceeds received are first allocated to the fair value of the derivative financial instruments determined using the binomial model. The remaining proceeds, if any, are then allocated to the debenture cost contracts, usually resulting in those instruments being recorded at a discount from their principal amount. This discount is accreted over the expected life of the instruments to profit (loss) using the effective interest method. The debenture host contracts are subsequently recorded at amortized cost at each reporting date, using the effective interest method. The embedded derivatives are subsequently recorded at fair value at each reporting date, with changes in fair value recognized in profit (loss). The Company presents its embedded derivatives and related debenture host contracts as separate instruments on the consolidated balance sheets. |
Note 4 - New and Recently Ado_2
Note 4 - New and Recently Adopted Technical and Accounting Pronouncements: Operating lease commitment (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Operating lease commitment | Operating lease commitment as at July 1, 2019 370,711 Effect of discounting at the incremental borrowing rate (51,578) Total lease liability as at July 1, 2019 319,133 |
Note 5 - Restatement of previ_2
Note 5 - Restatement of previously issued financial statements: Restatement to Prior Year Income (Tables) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Tables/Schedules | ||
Restatement to Prior Year Income | Year ended June 30, 2020 As previously reported Adjustment As restated Exploration $ 7,951,423 $ 694,008 $ 8,645,431 Loss from operations $ (10,099,815) $ (694,008) $ (10,793,823) Loss before income tax and net loss and comprehensive loss for the year $ (30,627,783) $ (694,008) $ (31,321,791) Net loss per common share - basic and fully diluted $ (0.46) $ (0.01) $ (0.47) | Year ended June 30, 2019 As previously reported Adjustment As restated Exploration $ 5,712,238 $ 704,495 $ 6,416,733 Loss from operations $ (7,409,431) $ (704,495) $ (8,113,926) Loss before income tax and net loss and comprehensive loss for the year $ (7,737,825) $ (704,495) $ (8,442,320) Net loss per common share - basic and fully diluted $ (1.96) $ (0.18) $ (2.14) |
Note 5 - Restatement of previ_3
Note 5 - Restatement of previously issued financial statements: Restatement to Prior Year Balance Sheet (Tables) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Tables/Schedules | ||
Restatement to Prior Year Balance Sheet | As at June 30, 2019 As previously reported Adjustment As restated Accounts payable $ 2,170,398 $ 1,251,227 $ 3,421,625 Total current liabilities $ 7,069,564 $ 1,251,227 $ 8,320,791 Total liabilities $ 7,186,373 $ 1,251,227 $ 8,437,600 Deficit accumulated during exploration stage $ (31,351,401) $ (1,251,227) $ (32,602,628) Total shareholders' deficiency $ (6,959,283) $ (1,251,227) $ (8,210,510) | As at June 30, 2020 As previously reported Adjustment As restated Accounts payable $ 3,431,699 $ 958,265 $ 4,389,964 Accrued liabilities $ 6,149,448 $ 1,066,666 $ 7,216,114 Total current liabilities $ 13,073,363 $ 2,024,931 $ 15,098,294 Total liabilities $ 31,949,872 $ 2,024,931 $ 33,974,803 Additional paid-in-capital $ 30,212,754 $ (79,696) $ 30,133,058 Deficit accumulated during exploration stage $ (61,979,184) $ (1,945,235) $ (63,924,419) Total shareholders' deficiency $ (31,216,988) $ (2,024,931) $ (33,241,919) |
Note 5 - Restatement of previ_4
Note 5 - Restatement of previously issued financial statements: Restatement to Prior Year Cash Flow (Tables) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Tables/Schedules | ||
Restatement to Prior Year Cash Flow | Year ended June 30, 2020 As previously reported Adjustment As restated Net loss for the year $ (30,627,783) $ (694,008) $ (31,321,791) Changes in operating assets and liabilities: Accounts payable $ 1,852,650 $ (372,658) $ 1,479,992 Accrued liabilities $ 3,253,423 $ 1,066,666 $ 4,320,089 | Year ended June 30, 2019 As previously reported Adjustment As restated Net loss for the year $ (7,737,825) $ (704,495) $ (8,442,320) Changes in operating assets and liabilities: Accounts payable $ 1,966,144 $ 704,495 $ 2,670,639 |
Note 5 - Restatement of previ_5
Note 5 - Restatement of previously issued financial statements: Restatement to Prior Year Stockholders Equity (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Restatement to Prior Year Stockholders Equity | As previously reported Adjustment As restated Deficit accumulated during the exploration stage, June 30, 2018 $ (23,613,576) $ (546,732) $ (24,160,308) Balance, Total, June 30, 2018 $ (216,314) $ (546,732) $ (763,046) Net loss for the year ended June 30, 2019 $ (7,737,825) $ (704,495) $ (8,442,320) Deficit accumulated during the exploration stage, June 30, 2019 $ (31,351,401) $ (1,251,227) $ (32,602,628) Balance, Total, June 30, 2019 $ (6,959,283) $ (1,251,227) $ (8,210,510) Issue costs $ (256,784) $ (79,696) $ (336,480) Net loss for the year ended June 30, 2020 $ (30,627,783) $ (694,008) $ (31,321,791) Deficit accumulated during the exploration stage, June 30, 2020 $ (61,979,184) $ (1,945,235) $ (63,924,419) Balance, Total, June 30, 2020 $ (31,216,988) $ (2,024,931) $ (33,241,919) |
Note 6 - Equipment_ Property, P
Note 6 - Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Property, Plant and Equipment | June 30, 2020 June 30, 2019 Leasehold improvements $ - 59,947 Equipment 228,578 9,050 228,578 68,997 Less accumulated depreciation (20,768) (16,947) Equipment, net $ 207,810 $ 52,050 |
Note 7 - Right-of-use asset_ Sc
Note 7 - Right-of-use asset: Schedule of right of use assets (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of right of use assets | June 30, 2020 June 30, 2019 Office lease $ 319,133 - Less accumulated depreciation (106,378) - Right-of-use asset, net $ 212,755 $ - |
Note 8 - Mining Interests_ Paym
Note 8 - Mining Interests: Payment schedule (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Payment schedule | Date Amount Action Within 30 days of the effective date $1,000,000 Paid November 1, 2018 $2,000,000 Not paid November 1, 2019 $3,000,000 Not paid November 1, 2020 $3,000,000 November 1, 2021 $3,000,000 November 1, 2022 $3,000,000 November 1, 2023 $3,000,000 November 1, 2024 $2,000,000 |
Note 9 - Convertible Loan Pay_2
Note 9 - Convertible Loan Payable: Assumptions applied to fair value of the conversion feature (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Hummingbird | |
Assumptions applied to fair value of the conversion feature | Principal Amount June 30, 2019 June 30, 2020 Expected life 365 days 31 days Volatility 100% 100% Risk free interest rate 1.75% 1.52% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $0 $0 Change in derivative liability $0 Additional Amount June 30, 2019 June 30, 2020 Expected life 365 days 31 days Volatility 100% 100% Risk free interest rate 1.75% 1.23% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $0 $0 Change in derivative liability $0 |
Note 9 - Convertible Loan Pay_3
Note 9 - Convertible Loan Payable: Assumptions applied to fair value of the warrants (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Hummingbird | |
Assumptions applied to fair value of the warrants | Principal Amount June 30, 2019 June 30, 2020 Expected life 349 days Expired Volatility 100% Risk free interest rate 1.95% Dividend yield 0% Share price $0.05 Fair value $0 $0 Change in derivative liability $0 Additional Amount June 30, 2019 June 30, 2020 Expected life 405 days 40 days Volatility 100% 100% Risk free interest rate 1.84% 1.49% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $0 $0 Change in derivative liability $0 |
Note 9 - Convertible Loan Pay_4
Note 9 - Convertible Loan Payable: Schedule of Debt (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Debt | Amount Balance, June 30, 2018 $ 70,820 Proceeds on issuance 500,000 Debt issue costs (238,455) Conversion feature valuation (205,444) Warrant valuation (221,256) Accretion expense 734,589 Loss on loan extinguishment 1,204,073 Partial extinguishment (100,000) Balance, June 30, 2019 $ 1,744,327 Accretion expense 146,266 Loss on loan extinguishment 9,407 Partial extinguishment (300,000) Balance, June 30, 2020 $ 1,600,000 |
Note 10 - Promissory Notes Pa_2
Note 10 - Promissory Notes Payable: Assumptions applied to fair value of the warrants (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Promissory notes | |
Assumptions applied to fair value of the warrants | November 2019 issuance November 14, 2019 June 30, 2020 Expected life 731 days 501 days Volatility 100% 100% Risk free interest rate 1.53% 0.94% Dividend yield 0% 0% Share price $0.53 $0.73 Fair value $106,622 $150,161 Change in derivative liability $(43,539) April 2020 issuance April 24, 2020 June 30, 2020 Expected life 568 days 501 days Volatility 100% 100% Risk free interest rate 0.33% 0.30% Dividend yield 0% 0% Share price $0.46 $0.73 Fair value $99,901 $186,410 Change in derivative liability $(86,509) |
Note 10 - Promissory Notes Pa_3
Note 10 - Promissory Notes Payable: Schedule of Debt (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Schedule of Debt | Amount Balance, June 30, 2018 $ 70,820 Proceeds on issuance 500,000 Debt issue costs (238,455) Conversion feature valuation (205,444) Warrant valuation (221,256) Accretion expense 734,589 Loss on loan extinguishment 1,204,073 Partial extinguishment (100,000) Balance, June 30, 2019 $ 1,744,327 Accretion expense 146,266 Loss on loan extinguishment 9,407 Partial extinguishment (300,000) Balance, June 30, 2020 $ 1,600,000 |
Promissory notes | |
Schedule of Debt | Amount Balance, June 30, 2019 $ - Proceeds on issuance 300,000 Warrant valuation (206,523) Accretion expense 155,001 Balance, June 30, 2020 $ 248,478 |
Note 11 - Lease liability_ Sche
Note 11 - Lease liability: Schedule of Capital Leased Assets (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Capital Leased Assets | Office lease Balance, June 30, 2019 $ - Addition 319,133 Interest expense 27,062 Lease payments (120,690) Foreign exchange gain (10,766) Balance, June 30, 2020 214,739 Less: current portion (102,027) Long-term lease liability $ 112,712 |
Note 11 - Lease liability_ Leas
Note 11 - Lease liability: Lease Obligations in Canadian Dollars (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Lease Obligations in Canadian Dollars | Less than 1 year 1-2 years 2-3 years Total Base rent $ 162,048 $ 148,544 $ - $ 310,592 Additional rent 150,060 137,555 - 287,615 $312,108 $ 286,099 $ - $ 598,207 |
Note 12 - Capital Stock, Warr_2
Note 12 - Capital Stock, Warrants and Stock Options: Assumptions applied to fair value of the conversion feature (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Warrant | |
Assumptions applied to fair value of the conversion feature | August 2019 issuance August 1, 2019 June 30, 2020 Expected life 731 days 397 days Volatility 100% 100% Risk free interest rate 1.59% 1.11% Dividend yield 0% 0% Share price $0.07 $0.73 Fair value $468,227 $11,631,921 Change in derivative liability $(11,163,694) |
Revalued | |
Assumptions applied to fair value of the conversion feature | December 2017 issuance June 30, 2019 June 30, 2020 Expected life 532 days 166 days Volatility 100% 100% Risk free interest rate 1.66% 0.69% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $0 $0 Change in derivative liability $0 August 2018 issuance June 30, 2019 June 30, 2020 Expected life 771 days 405 days Volatility 100% 100% Risk free interest rate 1.59% 1.20% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $0 $6,132 Change in derivative liability $(6,132) November 2018 issuance June 30, 2019 June 30, 2020 Expected life 882 days 516 days Volatility 100% 100% Risk free interest rate 1.47% 1.34% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $1,875 $206,253 Change in derivative liability $(204,378) June 2019 issuance June 30, 2019 June 30, 2020 Expected life 727 days 363 days Volatility 100% 100% Risk free interest rate 1.47% 1.15% Dividend yield 0% 0% Share price $0.05 $0.73 Fair value $114,934 $6,582,920 Change in derivative liability $(6,467,986) |
Note 12 - Capital Stock, Warr_3
Note 12 - Capital Stock, Warrants and Stock Options: Schedule of Warrants Activity Table Text Block (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Warrants Activity Table Text Block | Number of warrants Weighted average exercise price (C$) Weighted average Grant date Value ($) Balance, June 30, 2018 663,496 $ 16.02 $ 6.13 Issued 12,582,988 0.38 0.07 Cancelled (200,000) 20.00 7.50 Balance, June 30, 2019 13,046,484 $ 0.88 $ 0.27 Issued 27,360,284 0.27 0.03 Expired (229,464) 8.50 3.54 Exercised (i) (2,332,900) 0.25 0.02 Balance, June 30, 2020 37,844,404 $ 0.43 $ 0.09 |
Note 12 - Capital Stock, Warr_4
Note 12 - Capital Stock, Warrants and Stock Options: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Stockholders' Equity Note, Warrants or Rights | Expiry date Exercise price (C$) Number of warrants Number of warrants exercisable December 5, 2020 20.00 227,032 227,032 December 13, 2020 20.00 7,000 7,000 August 9, 2021 4.50 116,714 116,714 August 9, 2021 4.50 160,408 160,408 November 28, 2021 1.00 645,866 645,866 June 27, 2021 0.25 11,660,000 11,660,000 August 1, 2021 0.25 20,672,900 20,672,900 November 13, 2021 0.80 400,000 400,000 November 13, 2021 0.50 400,000 400,000 August 1, 2021 0.25 763,200 763,200 August 26, 2021 0.05 1,912,000 1,912,000 February 7, 2022 0.25 640,000 640,000 February 26, 2022 0.70 239,284 239,284 37,844,404 37,844,404 |
Note 12 - Capital Stock, Warr_5
Note 12 - Capital Stock, Warrants and Stock Options: Schedule of Stock Options Activity Table Text Block (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Stock Options Activity Table Text Block | Number of stock options Weighted average exercise price (C$) Balance, June 30, 2018 287,100 $ 7.50 Granted (i) 43,750 8.00 Exercised (43,750) 8.00 Balance, June 30, 2019 287,100 $ 7.50 Granted (ii) 7,532,659 0.56 Forfeited (239,600) 9.78 Balance, June 30, 2020 7,580,159 $ 0.62 |
Note 12 - Capital Stock, Warr_6
Note 12 - Capital Stock, Warrants and Stock Options: Schedule of Fair Value Assumptions Stock Options (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Fair Value Assumptions Stock Options | Risk free interest rate Dividend yield Volatility Stock price Weighted average life (i) 2.32% 0% 100% C$2.30 5 years (ii) 1.54% 0% 100% C$0.50 5 years (iii) 0.44% 0% 100% C$0.50 5 years |
Note 12 - Capital Stock, Warr_7
Note 12 - Capital Stock, Warrants and Stock Options: Information on stock options outstanding (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Information on stock options outstanding | Exercise price (C$) Weighted average remaining contractual life (years) Number of options outstanding Number of options vested (exercisable) Grant date fair value ($) 10.00 1.84 40,000 40,000 217,274 16.50 2.44 7,500 7,500 40,739 0.60 4.32 1,575,000 675,000 435,069 0.55 4.81 5,957,659 - 1,536,764 7,580,159 722,500 2,229,846 |
Note 13 - Restricted share un_2
Note 13 - Restricted share units: Share-based Payment Arrangement, Restricted Stock Unit, Activity (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | Number of shares Weighted average grant date fair value per share (C$) Unvested as at June 30, 2018 and June 30, 2019 - $ - Granted (i)(ii) 600,000 0.40 Unvested as at June 30, 2020 600,000 $ 0.40 |
Note 14 - Deferred share units_
Note 14 - Deferred share units: Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments | Number of shares Weighted average grant date fair value per share (C$) Unvested as at June 30, 2018 and June 30, 2019 - $ - Granted (i) 7,500,000 0.65 Unvested as at June 30, 2020 7,500,000 $ 0.65 |
Note 16 - Income Taxes_ Schedul
Note 16 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | Year Ended June 30, 2020 Year Ended June 30, 2019 Loss before income taxes, (as restated) $ 31,321,791 $ 8,442,320 Expected income tax recovery (8,425,600) (2,271,000) Other permanent difference 673,000 563,070 Change in valuation allowance 7,752,600 1,707,930 Total $ - $ - |
Note 16 - Income Taxes_ Sched_2
Note 16 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | June 30, 2020 June 30, 2019 Deferred tax asset: Net operating loss carry forward $ 6,374,700 $ 4,285,020 Other deferred tax assets 8,916,350 3,392,290 Valuation allowance (15,304,180) (7,687,200) Unrealized foreign exchange loss 13,130 8,870 Equipment - 1,020 Total $ - $ - |
Note 16 - Income Taxes_ Sched_3
Note 16 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | June 30, 2020 June 30, 2019 Deferred tax asset: Non-capital losses carried forward $ 10,050 $ 1,530,460 Lease liabilities 57,120 - Deferred tax liabilities: Convertible debt - (1,530,460) Equipment (10,050) - Right of use assets and lease obligations (57,120) - Net deferred tax asset $ - $ - |
Note 1 - Nature and Continuan_2
Note 1 - Nature and Continuance of Operations and Going Concern (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||
Substantial Doubt about Going Concern | These consolidated financial statements have been prepared on a going concern basis. The Company (the "Company") has incurred losses since inception resulting in an accumulated deficit of $63,924,419 (restated) and further losses are anticipated in the development of its business. The Company does not have sufficient working capital needed to meet its current fiscal obligations and commitments. In order to continue to meet its fiscal obligations in the current fiscal year and beyond, the Company must seek additional financing. This raises substantial doubt about the Company’s ability to continue as a going concern. Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
Deficit accumulated during the exploration stage | $ 63,924,419 | $ 32,602,628 |
Substantial Doubt about Going Concern, Management's Evaluation | Management is considering various financing alternatives including, but not limited to, raising capital through the capital markets and debt financing. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. |
Note 3 - Significant Account_21
Note 3 - Significant Accounting Policies: Basic and diluted net loss per share (Details) - shares | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||
Stock options | 7,580,159 | 287,100 |
Warrants | 37,844,404 | 13,046,484 |
Note 4 - New and Recently Ado_3
Note 4 - New and Recently Adopted Technical and Accounting Pronouncements: Operating lease commitment (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2019 |
Details | |||
Operating Lease, Expense | $ 319,133 | $ 0 | $ 319,133 |
Note 4 - New and Recently Ado_4
Note 4 - New and Recently Adopted Technical and Accounting Pronouncements (Details) | Jun. 30, 2019 |
Details | |
Debt, Weighted Average Interest Rate | 10.00% |
Note 6 - Equipment_ Property,_2
Note 6 - Equipment: Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Details | ||
Leasehold improvements | $ 0 | $ 59,947 |
Equipment | 228,578 | 9,050 |
Less accumulated depreciation | (20,768) | (16,947) |
Equipment, net | $ 207,810 | $ 52,050 |
Note 7 - Right-of-use asset_ _2
Note 7 - Right-of-use asset: Schedule of right of use assets (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2019 |
Details | |||
Office lease | $ 319,133 | $ 0 | $ 319,133 |
Depreciation expense lease | (106,378) | 0 | |
Right-of-use asset, net | $ 212,755 | $ 0 | $ 0 |
Note 8 - Mining Interests (Deta
Note 8 - Mining Interests (Details) - Epa - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Instrument, Periodic Payment | $ 960,000 | $ 560,000 |
EPA Water Treatment Charges | 2,229,408 | 1,209,530 |
Debt Instrument, Periodic Payment, Interest | 89,180 | 13,061 |
Accounts Payable and Other Accrued Liabilities | $ 7,905,235 | $ 3,811,227 |
Note 9 - Convertible Loan Pay_5
Note 9 - Convertible Loan Payable (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Accretion expense | $ 359,267 | $ 734,589 |
Hummingbird | ||
Accretion expense | 146,266 | 734,589 |
Interest expense | $ 179,726 | $ 198,219 |
Note 9 - Convertible Loan Pay_6
Note 9 - Convertible Loan Payable: Schedule of Debt (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||
Balance | $ 70,820 | |
Proceeds on issuance | 500,000 | |
Debt issue costs | (238,455) | |
Conversion feature valuation | (205,444) | |
Warrant valuation debt | (221,256) | |
Accretion expense debt | $ 146,266 | 734,589 |
Loss on loan extinguishment | 1,204,073 | |
Partial extinguishment | (100,000) | |
Convertible debt | 1,600,000 | 1,744,327 |
Loss on loan extinguishment | 9,407 | $ 1,204,073 |
Partial extinguishment | $ (300,000) |
Note 10 - Promissory Notes Pa_4
Note 10 - Promissory Notes Payable (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Proceeds from promissory notes | $ 1,084,536 | $ 0 |
Accretion expense debt | 146,266 | 734,589 |
Interest Expense | 202,426 | 256,029 |
Promissory notes | ||
Proceeds from promissory notes | 300,000 | |
Warrants issued to lender | 400,000 | |
Accretion expense debt | 155,001 | 0 |
Interest Expense | $ 22,700 | $ 0 |
Note 11 - Lease liability_ Sc_2
Note 11 - Lease liability: Schedule of Capital Leased Assets (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Details | ||||
Office lease | $ 319,133 | $ 0 | $ 319,133 | |
Interest expense on lease liability | $ 27,062 | 0 | ||
Lease payments | (120,690) | 0 | ||
Foreign exchange gain on retranslation of lease liability | (10,766) | 0 | ||
Operating Lease, Liability | 214,739 | 214,739 | ||
Current portion of lease liability (note 11) | (102,027) | 0 | (102,027) | 0 |
Lease liability (note 11) | $ 112,712 | $ 0 | $ 112,712 | $ 0 |
Note 12 - Capital Stock, Warr_8
Note 12 - Capital Stock, Warrants and Stock Options (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Common Stock, Shares Authorized | 750,000,000 | 750,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.000001 | $ 0.000001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.000001 | $ 0.000001 |
Stock issued for finders units, value | $ 125,180 | |
Gemstone | ||
Private placement units issued | 160,408 | |
Proceeds from Issuance of Private Placement | $ 549,333 | |
Private placement financing costs | 25,750 | |
Private equity | ||
Private placement units issued | 107,143 | 645,866 |
Proceeds from Issuance of Private Placement | $ 365,341 | |
Private placement financing costs | 10,062 | |
Stock issued for finders units, value | $ 44,671 | |
Nonbrokered privte placement | ||
Private placement units issued | 2,991,073 | 11,660,000 |
Proceeds from Issuance of Private Placement | $ 1,256,854 | $ 436,608 |
Private placement financing costs | 95,763 | 19,640 |
Nonbrokered privte placement tranche two | ||
Private placement units issued | 6,042,954 | |
Proceeds from Issuance of Private Placement | $ 228,202 | |
Private placement financing costs | 36,468 | |
Second nonbrokered privte placement | ||
Private placement units issued | 27,966,002 | |
Proceeds from Issuance of Private Placement | $ 1,049,974 | |
Private placement financing costs | 28,847 | |
Second nonbrokered privte placement tranche two | ||
Private placement units issued | 1,000,000 | |
Proceeds from Issuance of Private Placement | $ 37,550 | |
June units issued | ||
Private placement units issued | 1,403,200 | |
August units issued | ||
Private placement units issued | 1,912,000 | |
Units issued | ||
Proceeds from Issuance of Private Placement | $ 125,180 |
Note 12 - Capital Stock, Warr_9
Note 12 - Capital Stock, Warrants and Stock Options: Schedule of Warrants Activity Table Text Block (Details) - shares | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 |
Details | ||||
Warrants outstanding | 13,046,484 | 663,496 | 37,844,404 | |
Warrants issued | 27,360,284 | 12,582,988 | ||
Warrants cancelled | (229,464) | (200,000) | ||
Warrants exercised | (2,332,900) |
Note 12 - Capital Stock, War_10
Note 12 - Capital Stock, Warrants and Stock Options: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) | Jun. 30, 2020shares |
Details | |
Number of warrants outstanding | 37,844,404 |
Note 12 - Capital Stock, War_11
Note 12 - Capital Stock, Warrants and Stock Options: Schedule of Stock Options Activity Table Text Block (Details) - shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Details | |||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 7,580,159 | 287,100 | 287,100 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 7,532,659 | 43,750 | |
Options exercised | (43,750) | ||
Options exercised | (239,600) |
Note 12 - Capital Stock, War_12
Note 12 - Capital Stock, Warrants and Stock Options: Information on stock options outstanding (Details) - shares | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||
Stock options | 7,580,159 | 287,100 |
Note 13 - Restricted share un_3
Note 13 - Restricted share units: Share-based Payment Arrangement, Restricted Stock Unit, Activity (Details) | Jun. 30, 2019shares |
Details | |
Restricted Shared Units Outstanding | 600,000 |
Note 14 - Deferred share unit_2
Note 14 - Deferred share units: Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments (Details) | Jun. 30, 2019shares |
Details | |
Deferred Shared Units Outstanding | 7,500,000 |
Note 15 - Commitments and Con_2
Note 15 - Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Placer | ||
Other Commitments, Description | As stipulated by the agreements with Placer Mining as described in note 8, the Company is required to make monthly payment of $60,000 for care and maintenance and a lease extension fee of $60,000. Including the previously accrued payments, a total of $1,847,300 is payable until the Company decides to acquire the mine at which time these payments will be waived. | |
Epa | ||
Other Commitments, Description | As stipulated in the agreement with the EPA and as described in note 8, the company is required to make two payments to the EPA, one for cost-recovery, and the other for water treatment. As at June 30, 2020, $7,905,235 payable to the EPA has been included in accounts payable and accrued liabilities. The Company is now engaged with the EPA to amend and defer these payments. | |
Accounts Payable and Other Accrued Liabilities | $ 7,905,235 | $ 3,811,227 |
Lease Agreement | ||
Other Commitments, Description | The Company has entered into a lease agreement which expires in May 2022. Monthly rental expenses are approximately C$26,000 and are offset by rental income obtained through a series of subleases held by the Company. See note 11. |
Note 16 - Income Taxes (Details
Note 16 - Income Taxes (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 26.90% | 26.90% |
Operating Loss Carryforwards | $ 25,680,750 | $ 22,094,056 |
Note 16 - Income Taxes_ Sched_4
Note 16 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||
Loss before income taxes | $ 31,321,791 | $ 8,442,320 |
Expected income tax recovery | (8,425,600) | (2,271,000) |
Other permanent difference | 673,000 | 563,070 |
Change in valuation allowance | 7,752,600 | 1,707,930 |
Total | $ 0 | $ 0 |
Note 16 - Income Taxes_ Sched_5
Note 16 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||
Net operating loss carry forward | $ 6,374,700 | $ 4,285,020 |
Other deferred tax assets | 8,916,350 | 3,392,290 |
Valuation allowance | (15,304,180) | (7,687,200) |
Unrealized foreign exchange loss | 13,130 | 8,870 |
Equipment | 0 | 1,020 |
Total | $ 0 | $ 0 |
Note 16 - Income Taxes_ Sched_6
Note 16 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Deferred tax asset: | ||
Total | $ 10,050 | $ 1,530,460 |
Lease liabilities | 57,120 | 0 |
Deferred tax liabilities: | ||
Equipment | 0 | (1,530,460) |
Equipment | (10,050) | 0 |
Right of use assets and lease obligations | (57,120) | 0 |
Net deferred tax asset | $ 0 | $ 0 |
Note 17 - Related Party Trans_2
Note 17 - Related Party Transactions (Details) | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) |
Stock issued for finders units, value | $ 125,180 | |
Parsons | ||
Accounts payable related party | $ 136,045 | 136,045 |
Aird | ||
Accounts payable related party | 9,774 | 9,774 |
Williams | ||
Accounts payable related party | 134,927 | 134,927 |
Accounts payable related party detail | 121,161 | 121,161 |
Ash | ||
Accounts payable related party detail | 60,000 | 60,000 |
Shareholder | ||
Stock issued for finders units, value | 125,180 | |
Ryan | ||
Accounts payable related party | $ 51,500 | $ 51,500 |
Note 18 - Financial instrumen_2
Note 18 - Financial instruments (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Details | |
Fair Value Transfer, Policy | The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable excluding HST, accounts payable, accrued liabilities, interest payable, convertible loan payable, promissory notes payable, lease liability, and other liabilities, all of which qualify as financial instruments, are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and current market rate of interest. The Company measured its DSU liability at fair value on recurring basis using level 1 inputs and derivative warrant liabilities at fair value on recurring basis using level 3 inputs. There were no transfers of financial instruments between levels 1, 2, and 3 during the years ended June 30, 2020 and 2019. |
Discussion of Foreign Currency Derivative Risk Management Policy | Foreign currency risk is the risk that changes the rates of exchange on foreign currencies will impact the financial position of cash flows of the Company. The Company is exposed to foreign currency risks in relation to certain activities that are to be settled in Canadian dollar. Management monitors its foreign currency exposure regularly to minimize the risk of an adverse impact on its cash flows. |
Concentration of credit risk | Concentration of credit risk is the risk of loss in the event that certain counterparties are unable to fulfill its obligations to the Company. The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management also routinely assesses the financial strength and credit worthiness of any parties to which it extends funds and as such, it believes that any associated credit risk exposures are limited. |
Liquidity risk | Liquidity risk is the risk that the Company's consolidated cash flows from operations will not be sufficient for the Company to continue operating and discharge its liabilities. The Company is exposed to liquidity risk as its continued operation is dependent upon its ability to obtain financing, either in the form of debt or equity, or achieving profitable operations in order to satisfy its liabilities as they come due. |
Note 19 - Subsequent Events (De
Note 19 - Subsequent Events (Details) | Oct. 09, 2020 | Sep. 30, 2020 | Aug. 30, 2020 | Aug. 25, 2020 | Aug. 14, 2020 | Aug. 12, 2020 | Jul. 15, 2020 |
Details | |||||||
Subsequent Event, Description | On October 9, 2020, the Company settled the full balance of the convertible loan payable to Hummingbird by issuing 5,572,980 shares of the Company. | On September 30, 2020, 200,000 stock options were issued to a consultant. | The Company also issued 2,205,714 August 2020 Units to settle $585,115 (C$772,000) of debt. | On August 25, 2020, the Company closed the second tranche of the August 2020 Offering, issuing 20,866,292 August 2020 Units at C$0.35 per August 2020 Unit for gross proceeds of $5,497,453 (C$7,303,202). | On August 14, 2020, the Company closed the first tranche of the brokered private placement of units of the Company ('August 2020 Offering'), issuing 35,212,142 units of the Company (“August 2020 Units”) at C$0.35 per August 2020 Unit for gross proceeds of $9,301,321 (C$12,324,250). | On August 12, 2020, the Company announced that it has extended the lease with Placer | On July 15, 2020, the Company has entered into a loan agreement with an arm’s length third party for an unsecured loan facility of $1,200,000 (the “July 2020 Loan”) due August 31, 2020 |