Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2020 |
Entity Registrant Name | SCANDIUM INTERNATIONAL MINING CORP. |
Entity Central Index Key | 0001408146 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 312,482,595 |
Entity Current Reporting Status | Yes |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Entity Shell Company | false |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | A1 |
Entity File Number | 000-54416 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current | ||
Cash | $ 145,825 | $ 115,568 |
Prepaid expenses and receivables | 14,952 | 45,763 |
Total current assets | 160,777 | 161,331 |
Reclamation bond (Note 4) | 11,444 | 11,444 |
Equipment (Note 3) | 5,237 | 6,967 |
Mineral property interests (Note 4) | 704,053 | 704,053 |
Total assets | 881,511 | 883,795 |
Current | ||
Accounts payable and accrued liabilities | 380,745 | 269,059 |
Accounts payable with related parties (Note 5) | 578,353 | 269,165 |
Total liabilities | 959,098 | 538,224 |
Equity | ||
Capital stock (Note 6) (authorized: unlimited number of common shares; issued and outstanding: 312,482,595 (2019 - 312,482,595) | 109,375,661 | 109,375,661 |
Treasury stock (Note 7) (1,033,333 common shares) (2019 - 1,033,333) | (1,264,194) | (1,264,194) |
Additional paid in capital (Note 6) | 6,194,450 | 5,936,074 |
Accumulated other comprehensive loss | (853,400) | (853,400) |
Deficit | (113,530,104) | (112,848,570) |
Total equity (deficiency) | (77,587) | 345,571 |
Total liabilities and equity (deficiency) | $ 881,511 | $ 883,795 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Statement of Financial Position [Abstract] | ||
Common stock, authorized | Unlimited | Unlimited |
Common stock, issued | 312,482,595 | 312,482,595 |
Common stock, outstanding | 312,482,595 | 312,482,595 |
Treasury stock | 1,033,333 | 1,033,333 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
EXPENSES | ||||
Amortization (Note 3) | $ 576 | $ 576 | $ 1,730 | $ 1,730 |
Consulting | 40,499 | 98,159 | 103,064 | 297,580 |
Exploration | 19,694 | 46,828 | 48,875 | 93,983 |
General and administrative | 69,802 | 126,118 | 223,985 | 333,235 |
Insurance | 8,048 | 7,808 | 24,321 | 23,111 |
Professional fees | 7,235 | 7,353 | 44,095 | 57,616 |
Salaries and benefits | 116,139 | 114,823 | 344,549 | 343,958 |
Stock-based compensation (Note 5 & 6) | 0 | 4,844 | 258,376 | 427,480 |
Travel and entertainment | 234 | 32,550 | 3,892 | 58,712 |
Loss from operations | (262,227) | (439,059) | (1,052,887) | (1,637,405) |
Foreign exchange gain (loss) | (2,830) | (4,367) | (11,077) | 1,279 |
Sale of royalty (Note 9) | 0 | 0 | 382,430 | 0 |
Loss and comprehensive loss for the period | $ (265,007) | $ (443,426) | $ (681,534) | $ (1,636,126) |
Basic and diluted loss per common share | $ .00 | $ .00 | $ .00 | $ (.01) |
Weighted average number of common shares outstanding - basic and diluted | 312,482,595 | 311,926,082 | 312,482,595 | 309,914,357 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Loss for the period | $ (681,534) | $ (1,636,126) |
Items not affecting cash: | ||
Amortization | 1,730 | 1,730 |
Stock-based compensation | 258,376 | 427,480 |
Changes in non-cash working capital items: | ||
Decrease in prepaid expenses and receivables | 30,811 | 24,198 |
(Decrease) increase in accounts payable, accrued liabilities and accounts payable with related parties | 420,874 | 156,626 |
Net cash provided by (used in) operating activities | 30,257 | (1,026,092) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Common shares issued | 0 | 799,483 |
Options exercised for common shares | 0 | 160,996 |
Net cash provided by used in financing activities | 0 | 960,479 |
Change in cash during the period | 30,257 | (65,613) |
Cash, beginning of period | 115,568 | 284,757 |
Cash, end of period | 145,825 | 219,144 |
Cash paid during the period for interest | 0 | 0 |
Cash paid during the period for taxes | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Capital Stock | Additional Paid in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Deficit | Total |
Beginning balance, shares at Dec. 31, 2018 | 304,781,294 | |||||
Beginning balance, amount at Dec. 31, 2018 | $ 108,244,311 | $ 5,675,812 | $ (1,264,194) | $ (853,400) | $ (110,900,636) | $ 901,893 |
Private placement, shares | 5,926,301 | |||||
Private placement, amount | $ 799,483 | 799,483 | ||||
Options exercised, shares | 1,075,000 | |||||
Options exercised, amount | $ 197,778 | (101,098) | 96,680 | |||
Stock-based compensation | 13,116 | 13,116 | ||||
Loss for the three months | (332,766) | (332,766) | ||||
Ending balance, shares at Mar. 31, 2019 | 311,782,595 | |||||
Ending balance, amount at Mar. 31, 2019 | $ 109,241,572 | 5,587,830 | (1,264,194) | (853,400) | (111,233,402) | 1,478,406 |
Beginning balance, shares at Dec. 31, 2018 | 304,781,294 | |||||
Beginning balance, amount at Dec. 31, 2018 | $ 108,244,311 | 5,675,812 | (1,264,194) | (853,400) | (110,900,636) | 901,893 |
Stock-based compensation | 427,480 | |||||
Ending balance, shares at Sep. 30, 2019 | 312,482,595 | |||||
Ending balance, amount at Sep. 30, 2019 | $ 109,375,661 | 5,932,421 | (1,264,194) | (853,400) | (112,536,762) | 653,726 |
Beginning balance, shares at Mar. 31, 2019 | 311,782,595 | |||||
Beginning balance, amount at Mar. 31, 2019 | $ 109,241,572 | 5,587,830 | (1,264,194) | (853,400) | (111,233,402) | 1,478,406 |
Stock-based compensation | 409,520 | 409,520 | ||||
Loss for the three months | (859,934) | (859,934) | ||||
Ending balance, shares at Jun. 30, 2019 | 311,782,595 | |||||
Ending balance, amount at Jun. 30, 2019 | $ 109,241,572 | 5,997,350 | (1,264,194) | (853,400) | (112,093,336) | 1,027,992 |
Options exercised, shares | 700,000 | |||||
Options exercised, amount | $ 134,089 | (69,773) | 64,316 | |||
Stock-based compensation | 4,844 | 4,844 | ||||
Loss for the three months | (443,426) | (443,426) | ||||
Ending balance, shares at Sep. 30, 2019 | 312,482,595 | |||||
Ending balance, amount at Sep. 30, 2019 | $ 109,375,661 | 5,932,421 | (1,264,194) | (853,400) | (112,536,762) | 653,726 |
Stock-based compensation | 3,653 | 3,653 | ||||
Loss for the three months | (311,808) | (311,808) | ||||
Ending balance, shares at Dec. 31, 2019 | 312,482,595 | |||||
Ending balance, amount at Dec. 31, 2019 | $ 109,375,661 | 5,936,074 | (1,264,194) | (853,400) | (112,848,570) | 345,571 |
Stock-based compensation | 254,760 | 254,760 | ||||
Loss for the three months | (146,014) | (146,014) | ||||
Ending balance, shares at Mar. 31, 2020 | 312,482,595 | |||||
Ending balance, amount at Mar. 31, 2020 | $ 109,375,661 | 6,190,834 | (1,264,194) | (853,400) | (112,994,584) | 454,317 |
Beginning balance, shares at Dec. 31, 2019 | 312,482,595 | |||||
Beginning balance, amount at Dec. 31, 2019 | $ 109,375,661 | 5,936,074 | (1,264,194) | (853,400) | (112,848,570) | 345,571 |
Stock-based compensation | 258,376 | |||||
Ending balance, shares at Sep. 30, 2020 | 312,482,595 | |||||
Ending balance, amount at Sep. 30, 2020 | $ 109,375,661 | 6,194,450 | (1,264,194) | (853,400) | (113,530,104) | (77,587) |
Beginning balance, shares at Mar. 31, 2020 | 312,482,595 | |||||
Beginning balance, amount at Mar. 31, 2020 | $ 109,375,661 | 6,190,834 | (1,264,194) | (853,400) | (112,994,584) | 454,317 |
Stock-based compensation | 3,616 | 3,616 | ||||
Loss for the three months | (270,463) | (270,463) | ||||
Ending balance, shares at Jun. 30, 2020 | 312,482,595 | |||||
Ending balance, amount at Jun. 30, 2020 | $ 109,375,661 | 6,194,450 | (1,264,194) | (853,400) | (113,265,047) | 187,470 |
Stock-based compensation | 0 | |||||
Loss for the three months | (265,057) | (265,057) | ||||
Ending balance, shares at Sep. 30, 2020 | 312,482,595 | |||||
Ending balance, amount at Sep. 30, 2020 | $ 109,375,661 | $ 6,194,450 | $ (1,264,194) | $ (853,400) | $ (113,530,104) | $ (77,587) |
NATURE AND CONTINUANCE OF OPERA
NATURE AND CONTINUANCE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE AND CONTINUANCE OF OPERATIONS | Scandium International Mining Corp. (the “Company”) is a specialty metals and alloys company focusing on scandium and other specialty metals. The Company was incorporated under the laws of the Province of British Columbia, Canada in 2006. The Company currently trades on the Toronto Stock Exchange under the symbol “SCY”. The Company’s focus is on the exploration and evaluation of its specialty metals assets, specifically the Nyngan scandium deposit located in New South Wales, Australia. The Company is an exploration stage company and anticipates incurring significant additional expenditures prior to production at any and all of its properties. These condensed consolidated financial statements have been prepared on a going concern basis that contemplates the realization of assets and discharge of liabilities at their carrying values in the normal course of business for the foreseeable future. These financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. The Company currently earns no operating revenues and will require additional capital in order to advance the Nyngan property. The Company’s ability to continue as a going concern is uncertain and is dependent upon the generation of profits from mineral properties, obtaining additional financing and maintaining continued support from its shareholders and creditors. These are material uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern. In the event that additional financial support is not received, or operating profits are not generated, the carrying values of the Company’s assets may be adversely affected. In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and related adverse public health developments, have adversely affected workforces, economies, and financial markets globally, leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or ability to raise funds. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | Basis of presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The interim condensed consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries with all significant intercompany transactions eliminated. In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods have been made. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019 and with our Annual Report on Form 10-K filed with the SEC on February 28, 2020. Operating results for the nine-month period ended September 30, 2020 may not necessarily be indicative of the results for the year ending December 31, 2020. These unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, EMC Metals USA Inc., Scandium International Mining Corp., Norway AS, SCY Exploration Finland Oy, and EMC Metals Australia Pty Ltd. (“EMC-A”). Use of estimates The preparation of unaudited interim condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuations, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected. The Company considers itself to be an exploration stage company and will consider the transition to development stage after it receives funding to begin mine construction, and board approval. Fair value of financial assets and liabilities The Company measures the fair value of financial assets and liabilities based on US GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount. Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income. Financial instruments, including receivables, accounts payable and accrued liabilities, and accounts payable with related parties are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company has no leases with a term of greater than 12 months. Short term lease expenses totaled $14,766 during the nine months ended September 30, 2020 and $13,932 during the nine months ended September 30, 2019. The following table presents information about the assets that are measured at fair value on a recurring basis as at September 30, 2020 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: September 30, 2020 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 145,825 $ 145,825 $ $ Total $ 145,825 $ 145,825 $ $ Recently Adopted and Recently Issued Accounting Standards Accounting Standards Update 2019-12 – Income Taxes (Topic 740) The Financial Accounting Standards Board (“Board”) is issuing this Update as part of its initiative to reduce complexity in accounting standards. This standard is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial statements. Accounting Standards Update 2019-01 – Leases (Topic 842) Codification Improvements - Issue 3 Transition Disclosures Related to Topic 250, Accounting Changes and Error Corrections. The amendments in this Update clarify the Board’s original intent by explicitly providing an exception to the paragraph 250-10-50-3 interim disclosure requirements in the Topic 842 transition disclosure requirements. Accounting Standards Update 2020-05 – Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) changed the effective date for Leases (Topic 842) to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company has evaluated that this guidance will have little or no impact on its financial statements. Accounting Standards Update 2018-13 – Fair Value Measurement (Topic 840) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company has adopted this policy which has no material effect on the consolidated financial statements. |
EQUIPMENT
EQUIPMENT | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
EQUIPMENT | December 31, 2019 Net Book Value Additions (disposals) (write-offs) Amortization September 30, 2020 Net Book Value Computer equipment $ 6,967 $ $ (1,730 ) $ 5,237 December 31, 2018 Net Book Value Additions (disposals) (write-offs) Amortization December 31, 2019 Net Book Value Computer equipment $ 9,274 $ $ (2,307 ) $ 6,967 |
MINERAL PROPERTY INTERESTS
MINERAL PROPERTY INTERESTS | 9 Months Ended |
Sep. 30, 2020 | |
Extractive Industries [Abstract] | |
MINERAL PROPERTY INTERESTS | September 30, 2020 Scandium and other Balance, September 30, 2020, December 31, 2019 $ 704,053 Title to mineral property interests involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristic of many mineral property interests. The Company has investigated title to all of its mineral property interests and, to the best of its knowledge, title to all of its properties is in good standing. SCANDIUM PROPERTIES Nyngan, New South Wales Property The Company holds a 100% interest in the Nyngan property in New South Wales, Australia (NSW). A definitive feasibility study was completed on the property in 2016. In April 2019, the Company received notice from the New South Wales Department of Planning and Environment (the “Department”) that, due to a procedural issue within the Department, the Company’s Mine Lease Grant (“ML 1763”) pertaining to the Nyngan Scandium Project, previously issued by the Department, is invalid. On September 10, 2020, the Company announced receipt of a Final Determination letter from the Deputy Secretary, Mining, Exploration and Geoscience resolving the outstanding objection filed by the landowner in 2016. This Final Determination will allow all measured and indicated resources included in the Nyngan Scandium Project Definitive Feasibility Study (“DFS”) to be reinstated in a Mining Lease grant. In May 2019, the Company filed a new mine lease application with the Department, related to the Nyngan Scandium Project to compensate for the procedural issue. On July 24, 2019, the Company announced that a new mine lease (“ML 1792”) had been granted. Royalties attached to the Nyngan property include a 0.7% royalty on gross mineral sales on the property, a 1.5% Net Profits Interest royalty to private parties involved with the early exploration on the property, and a 1.7% Net Smelter Returns royalty payable for 12 years after production commences. Another revenue royalty is payable to private interests of 0.2%, subject to a $370,000 cap. A NSW minerals royalty will also be levied on the project, subject to negotiation, currently 4% on revenue. Honeybugle property, Australia The Company holds a 100% interest in the Honeybugle property. Kiviniemi Scandium Property Finland In August 2018, the Company was granted an Exploration License for the Kiviniemi Scandium Property in central Finland from the Finnish regulatory body governing mineral exploration and mining in Finland. As of June 30, 2020, no funds have been capitalized for this property. During fiscal 2018, a reclamation bond of $11,444 (€10,000) was placed. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | During the 9-month period ended September 30, 2020, the Company expensed $196,551 for stock-based compensation for stock options issued to Company directors. During the 9-month period ended September 30, 2019, the Company expensed $314,104 for stock-based compensation for stock options issued to Company directors. During the 9-month period ended September 30, 2020, the Company expensed a consulting fee of $76,500 to one of its directors. During the 9-month period ended September 30, 2019, the Company expensed a consulting fee of $76,500 to one of its directors. As of September 30, 2020, the Company owed $578,353 to various directors and officers of the Company. (December 31, 2019 - $269,165) |
CAPITAL STOCK AND ADDITIONAL PA
CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL | 9 Months Ended |
Sep. 30, 2020 | |
Equity | |
CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL | Private placements On March 21, 2019, the Company issued 5,926,301 common shares at a value of C$0.18 per common share for total proceeds of C$1,066,734 ($799,483). Stock Options The Company established a stock option plan (the “Plan”) under which it is authorized to grant options to executive officers and directors, employees and consultants and the number of options granted under the Plan shall not exceed 15% of the shares outstanding. Under the Plan, the exercise period of the options may not exceed ten years from the date of grant and vesting is determined by the Board of Directors. Stock option transactions are summarized as follows: Stock Options Number Weighted average exercise price in Canadian $ Outstanding, December 31, 2018 29,065,000 $ 0.19 Granted 9,860,000 0.15 Exercised (1,775,000 ) 0.12 Expired (2,540,000 ) 0.16 Outstanding, December 31, 2019 34,610,000 0.188 Granted 8,525,000 0.065 Expired (8,885,000 ) 0.159 Outstanding, September 30, 2020 34,250,000 $ 0.165 Number currently exercisable 34,250,000 $ 0.165 As at September 30, 2020, incentive stock options were outstanding as follows: Number of Options Outstanding Number of Options Exercisable Exercise Price in Canadian $ Expiry Date Options 4,300,000 4,300,000 0.100 November 5, 2020* 4,850,000 4,850,000 0.130 February 8, 2021 400,000 400,000 0.370 August 19, 2021 400,000 400,000 0.225 August 19, 2021 400,000 400,000 0.150 August 19, 2021 400,000 400,000 0.065 August 19, 2021 4,400,000 4,400,000 0.370 February 21, 2022 250,000 250,000 0.300 October 6, 2022 5,700,000 5,700,000 0.225 January 19, 2023 350,000 350,000 0.185 August 30, 2023 4,625,000 4,625,000 0.150 May 9, 2024 50,000 50,000 0.130 June 24, 2024 8,025,000 8,025,000 0.065 March 19, 2025 100,000 100,000 0.075 May 22, 2025 34,250,000 34,250,000 * 800,000 of these options were exercised in early November for proceeds of C$80,000 (US$60,344). 3,500,000 options expired unexercised November 5, 2020. As at September 30, 2020 the Company’s outstanding and exercisable stock options have an aggregate intrinsic value of $414,412 (December 31, 2019 - $Nil). Stock-based compensation During the 9-month period ended September 30, 2020, the Company recognized stock-based compensation of $258,376 (September 30, 2019 - $427,280) in the statement of operations and comprehensive loss. There were 8,525,000 stock options granted during the 9-month period ended September 30, 2020 (September 30, 2019 – 9,860,000). The weighted average fair value of the options granted in the 9-month period was C$0.065 (September 30, 2019 – C$0.09). The fair value of all compensatory options granted is estimated on grant date using the Black-Scholes option pricing model. The weighted average assumptions used in calculating the fair values of stock options granted in the 9-month period ended September 30 are as follows: 2020 2019 Risk-free interest rate 1.31 % 2.31 % Expected life 5 years 5 years Volatility 86.26 % 90.40 % Forfeiture rate N/A N/A Dividend rate N/A N/A |
TREASURY STOCK
TREASURY STOCK | 9 Months Ended |
Sep. 30, 2020 | |
Treasury Stock, Shares [Abstract] | |
TREASURY STOCK | Number Amount Treasury shares, September 30, 2020, and December 31 2019 $ 1,033,333 1,264,194 Treasury shares comprise shares of the Company which cannot be sold without the prior approval of the TSX. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENTED INFORMATION | The Company’s mineral properties are located in Australia. The Company’s capital assets’ geographic information is as follows: September 30, 2020 Australia United States Total Equipment $ $ 5,237 $ 5,237 Mineral property interests 704,053 704,053 $ 704,053 $ 5,237 $ 709,290 December 31, 2019 Australia United States Total Equipment $ $ 6,967 $ 6,967 Mineral property interests 704,053 704,053 $ 704,053 $ 6,967 $ 711,020 |
SALE OF ROYALTY
SALE OF ROYALTY | 9 Months Ended |
Sep. 30, 2020 | |
Sale Of Royalty | |
SALE OF ROYALTY | On January 16, 2020, the Company received net proceeds of $382,430 (C$500,000) from completion of a royalty buyback agreement. The Company’s royalty interest was related to the Windfall Lake gold property in Quebec, Canada, and was carried at zero value on the balance sheet. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The interim condensed consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries with all significant intercompany transactions eliminated. In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods have been made. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019 and with our Annual Report on Form 10-K filed with the SEC on February 28, 2020. Operating results for the nine-month period ended September 30, 2020 may not necessarily be indicative of the results for the year ending December 31, 2020. These unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, EMC Metals USA Inc., Scandium International Mining Corp., Norway AS, SCY Exploration Finland Oy, and EMC Metals Australia Pty Ltd. (“EMC-A”). |
Use of Estimates | The preparation of unaudited interim condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuations, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected. The Company considers itself to be an exploration stage company and will consider the transition to development stage after it receives funding to begin mine construction, and board approval. |
Fair Value of Financial Assets and Liabilities | The Company measures the fair value of financial assets and liabilities based on US GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount. Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income. Financial instruments, including receivables, accounts payable and accrued liabilities, and accounts payable with related parties are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company has no leases with a term of greater than 12 months. Short term lease expenses totaled $14,766 during the nine months ended September 30, 2020 and $13,932 during the nine months ended September 30, 2019. The following table presents information about the assets that are measured at fair value on a recurring basis as at September 30, 2020 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: September 30, 2020 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 145,825 $ 145,825 $ $ Total $ 145,825 $ 145,825 $ $ |
Recently Adopted and Recently Issued Accounting Standards | Accounting Standards Update 2019-12 – Income Taxes (Topic 740) The Financial Accounting Standards Board (“Board”) is issuing this Update as part of its initiative to reduce complexity in accounting standards. This standard is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial statements. Accounting Standards Update 2019-01 – Leases (Topic 842) Codification Improvements - Issue 3 Transition Disclosures Related to Topic 250, Accounting Changes and Error Corrections. The amendments in this Update clarify the Board’s original intent by explicitly providing an exception to the paragraph 250-10-50-3 interim disclosure requirements in the Topic 842 transition disclosure requirements. Accounting Standards Update 2020-05 – Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) changed the effective date for Leases (Topic 842) to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company has evaluated that this guidance will have little or no impact on its financial statements. Accounting Standards Update 2018-13 – Fair Value Measurement (Topic 840) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company has adopted this policy which has no material effect on the consolidated financial statements. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of fair value, by balance sheet grouping | September 30, 2020 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 145,825 $ 145,825 $ $ Total $ 145,825 $ 145,825 $ $ |
EQUIPMENT (Tables)
EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | December 31, 2019 Net Book Value Additions (disposals) (write-offs) Amortization September 30, 2020 Net Book Value Computer equipment $ 6,967 $ $ (1,730 ) $ 5,237 December 31, 2018 Net Book Value Additions (disposals) (write-offs) Amortization December 31, 2019 Net Book Value Computer equipment $ 9,274 $ $ (2,307 ) $ 6,967 |
MINERAL PROPERTY INTERESTS (Tab
MINERAL PROPERTY INTERESTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Extractive Industries [Abstract] | |
Schedule of mineral interests | September 30, 2020 Scandium and other Balance, September 30, 2020, December 31, 2019 $ 704,053 |
CAPITAL STOCK AND ADDITIONAL _2
CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity | |
Schedule of stock option activity | Stock Options Number Weighted average exercise price in Canadian $ Outstanding, December 31, 2018 29,065,000 $ 0.19 Granted 9,860,000 0.15 Exercised (1,775,000 ) 0.12 Expired (2,540,000 ) 0.16 Outstanding, December 31, 2019 34,610,000 0.188 Granted 8,525,000 0.065 Expired (8,885,000 ) 0.159 Outstanding, September 30, 2020 34,250,000 $ 0.165 Number currently exercisable 34,250,000 $ 0.165 |
Schedule of stock options outstanding | Number of Options Outstanding Number of Options Exercisable Exercise Price in Canadian $ Expiry Date Options 4,300,000 4,300,000 0.100 November 5, 2020* 4,850,000 4,850,000 0.130 February 8, 2021 400,000 400,000 0.370 August 19, 2021 400,000 400,000 0.225 August 19, 2021 400,000 400,000 0.150 August 19, 2021 400,000 400,000 0.065 August 19, 2021 4,400,000 4,400,000 0.370 February 21, 2022 250,000 250,000 0.300 October 6, 2022 5,700,000 5,700,000 0.225 January 19, 2023 350,000 350,000 0.185 August 30, 2023 4,625,000 4,625,000 0.150 May 9, 2024 50,000 50,000 0.130 June 24, 2024 8,025,000 8,025,000 0.065 March 19, 2025 100,000 100,000 0.075 May 22, 2025 34,250,000 34,250,000 * 800,000 of these options were exercised in early November for proceeds of C$80,000 (US$60,344). 3,500,000 options expired unexercised November 5, 2020. |
Schedule of weighted average assumptions for fair values | 2020 2019 Risk-free interest rate 1.31 % 2.31 % Expected life 5 years 5 years Volatility 86.26 % 90.40 % Forfeiture rate N/A N/A Dividend rate N/A N/A |
TREASURY STOCK (Tables)
TREASURY STOCK (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Treasury Stock, Shares [Abstract] | |
Schedule of treasury stock | Number Amount Treasury shares, September 30, 2020, and December 31 2019 $ 1,033,333 1,264,194 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segmented information | September 30, 2020 Australia United States Total Equipment $ — $ 5,237 $ 5,237 Mineral property interests 704,053 — 704,053 $ 704,053 $ 5,237 $ 709,290 December 31, 2019 Australia United States Total Equipment $ — $ 6,967 $ 6,967 Mineral property interests 704,053 — 704,053 $ 704,053 $ 6,967 $ 711,020 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Cash | $ 145,825 | $ 115,568 | $ 219,144 | $ 284,757 |
Total | 145,825 | |||
Quoted Prices in Active Markets (Level 1) | ||||
Cash | 145,825 | |||
Total | 145,825 | |||
Significant Other Observable Inputs (Level 2) | ||||
Cash | 0 | |||
Total | 0 | |||
Significant Unobservable Inputs (Level 3) | ||||
Cash | 0 | |||
Total | $ 0 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Short-term lease expense | $ 14,766 | $ 13,932 |
EQUIPMENT (Details)
EQUIPMENT (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Net book value, beginning of period | $ 5,813 | $ 8,120 | $ 6,967 | $ 9,274 | $ 9,274 |
Additions (disposals) (write-offs) | 0 | 0 | 0 | 0 | |
Amortization | (576) | (576) | (1,730) | (1,730) | |
Net book value, end of period | 5,237 | $ 7,544 | 5,237 | 7,544 | 6,967 |
Computer Equipment | |||||
Net book value, beginning of period | 6,967 | $ 9,274 | 9,274 | ||
Additions (disposals) (write-offs) | 0 | 0 | |||
Amortization | (1,730) | (2,307) | |||
Net book value, end of period | $ 5,237 | $ 5,237 | $ 6,967 |
MINERAL PROPERTY INTERESTS (Det
MINERAL PROPERTY INTERESTS (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Extractive Industries [Abstract] | ||
Mineral property interests | $ 704,053 | $ 704,053 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||
Option expense | $ 196,551 | $ 314,104 | |
Related party transaction, amounts of transaction | 76,500 | $ 76,500 | |
Due to directors and officers or stockholders | $ 578,353 | $ 269,165 |
CAPITAL STOCK AND ADDITIONAL _3
CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2018 | |
Equity | |||||
Number of stock options outstanding, beginning | 34,610,000 | 29,065,000 | 29,065,000 | ||
Number of stock options granted | 8,525,000 | 9,860,000 | 9,860,000 | ||
Number of stock options exercised | (1,775,000) | (1,775,000) | |||
Number of stock options expired | (8,885,000) | (300,000) | (2,540,000) | ||
Number of stock options outstanding, ending | 34,250,000 | 34,910,000 | 34,610,000 | ||
Number of stock options exercisable | 34,250,000 | 29,900,000 | 29,650,000 | 34,250,000 | 28,130,000 |
Weighted average exercise price of stock options outstanding, beginning | $ .188 | $ .190 | $ .190 | ||
Weighted average exercise price of stock options granted | .065 | .150 | .150 | ||
Weighted average exercise price of stock options exercised | .120 | .120 | |||
Weighted average exercise price of stock options expired | 0.159 | .160 | .160 | ||
Weighted average exercise price of stock options outstanding, ending | .165 | .188 | $ .188 | ||
Weighted average exercise price of stock options exercisable | $ .165 | $ .193 |
CAPITAL STOCK AND ADDITIONAL _4
CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (Details 1) - $ / shares | 9 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | ||
Number of options outstanding | 34,250,000 | 34,250,000 | 34,610,000 | 34,910,000 | 29,065,000 | |
Number of options exercisable | 34,250,000 | 34,250,000 | 29,650,000 | 29,900,000 | 28,130,000 | |
Exercise price | $ .165 | $ .188 | $ .188 | $ .190 | ||
Option 1 | ||||||
Number of options outstanding | 4,300,000 | |||||
Number of options exercisable | 4,300,000 | |||||
Exercise price | $ .100 | |||||
Expiration date | [1] | Nov. 5, 2020 | ||||
Option 2 | ||||||
Number of options outstanding | 4,850,000 | |||||
Number of options exercisable | 4,850,000 | |||||
Exercise price | $ .130 | |||||
Expiration date | Feb. 8, 2021 | |||||
Option 3 | ||||||
Number of options outstanding | 400,000 | |||||
Number of options exercisable | 400,000 | |||||
Exercise price | $ .370 | |||||
Expiration date | Aug. 19, 2021 | |||||
Option 4 | ||||||
Number of options outstanding | 400,000 | |||||
Number of options exercisable | 400,000 | |||||
Exercise price | $ .225 | |||||
Expiration date | Aug. 19, 2021 | |||||
Option 5 | ||||||
Number of options outstanding | 400,000 | |||||
Number of options exercisable | 400,000 | |||||
Exercise price | $ .150 | |||||
Expiration date | Aug. 19, 2021 | |||||
Option 6 | ||||||
Number of options outstanding | 400,000 | |||||
Number of options exercisable | 400,000 | |||||
Exercise price | $ .065 | |||||
Expiration date | Aug. 19, 2021 | |||||
Option 7 | ||||||
Number of options outstanding | 4,400,000 | |||||
Number of options exercisable | 4,400,000 | |||||
Exercise price | $ .370 | |||||
Expiration date | Feb. 21, 2022 | |||||
Option 8 | ||||||
Number of options outstanding | 250,000 | |||||
Number of options exercisable | 250,000 | |||||
Exercise price | $ .300 | |||||
Expiration date | Oct. 6, 2022 | |||||
Option 9 | ||||||
Number of options outstanding | 5,700,000 | |||||
Number of options exercisable | 5,700,000 | |||||
Exercise price | $ .225 | |||||
Expiration date | Jan. 19, 2023 | |||||
Option 10 | ||||||
Number of options outstanding | 350,000 | |||||
Number of options exercisable | 350,000 | |||||
Exercise price | $ .185 | |||||
Expiration date | Aug. 30, 2023 | |||||
Option 11 | ||||||
Number of options outstanding | 4,625,000 | |||||
Number of options exercisable | 4,625,000 | |||||
Exercise price | $ .150 | |||||
Expiration date | May 9, 2024 | |||||
Option 12 | ||||||
Number of options outstanding | 50,000 | |||||
Number of options exercisable | 50,000 | |||||
Exercise price | $ .130 | |||||
Expiration date | Jun. 24, 2024 | |||||
Option 13 | ||||||
Number of options outstanding | 8,025,000 | |||||
Number of options exercisable | 8,025,000 | |||||
Exercise price | $ .065 | |||||
Expiration date | Mar. 19, 2025 | |||||
Option 14 | ||||||
Number of options outstanding | 100,000 | |||||
Number of options exercisable | 100,000 | |||||
Exercise price | $ .075 | |||||
Expiration date | May 22, 2025 | |||||
[1] | 800,000 of these options were exercised in early November for proceeds of C$80,000 (US$60,344). 3,500,000 options expired unexercised November 5, 2020. |
CAPITAL STOCK AND ADDITIONAL _5
CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (Details 2) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Equity | ||
Risk-free interest rate | 1.31% | 2.31% |
Expected life | 5 years | 5 years |
Volatility | 86.26% | 90.40% |
Forfeiture rate | 0.00% | 0.00% |
Dividend rate | 0.00% | 0.00% |
CAPITAL STOCK AND ADDITIONAL _6
CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)shares | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($)shares | Sep. 30, 2019$ / shares | Dec. 31, 2019USD ($)shares | |
Equity | ||||||||||||
Aggregate intrinsic value of outstanding and exercisable stock options | $ 414,412 | $ 0 | $ 414,412 | $ 414,412 | $ 0 | |||||||
Stock-based compensation | $ 0 | $ 3,616 | $ 254,760 | $ 3,653 | $ 4,844 | $ 409,520 | $ 13,116 | $ 258,376 | $ 427,480 | |||
Stock options granted | shares | 8,525,000 | 9,860,000 | 9,860,000 | |||||||||
Weighted average fair value of stock options granted | $ / shares | $ .065 | $ .090 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Treasury Stock, Shares [Abstract] | ||
Treasury shares, number | 1,033,333 | 1,033,333 |
Treasury shares, amount | $ 1,264,194 | $ 1,264,194 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Equipment | $ 5,237 | $ 6,967 |
Mineral property interests | 704,053 | 704,053 |
Capital assets | 709,290 | 711,020 |
Australia | ||
Equipment | 0 | 0 |
Mineral property interests | 704,053 | 704,053 |
Capital assets | 704,053 | 704,053 |
United States | ||
Equipment | 5,237 | 6,967 |
Mineral property interests | 0 | 0 |
Capital assets | $ 5,237 | $ 6,967 |