Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 07, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Rare Element Resources Ltd | ' |
Entity Central Index Key | '0001419806 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 47,707,216 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $12,887 | $23,902 |
Interest receivable | 0 | 4 |
Accounts receivable | 22 | 29 |
Prepaid expenses | 401 | 402 |
Total Current Assets | 13,310 | 24,337 |
Equipment, net | 391 | 521 |
Land | 980 | 980 |
Mineral properties | 27 | 27 |
Total assets | 14,708 | 25,865 |
Current Liabilities | ' | ' |
Accounts payable and accrued liabilities | 1,049 | 1,528 |
Asset retirement obligation | 210 | 204 |
Total Current Liabilities | 1,259 | 1,732 |
Asset retirement obligation | 222 | 211 |
Total liabilities | 1,481 | 1,943 |
Commitments and contingencies | 0 | 0 |
SHAREHOLDERS' EQUITY | ' | ' |
Common shares, no par value - unlimited shares authorized; shares outstanding September 30, 2014 - 47,707,216, December 31, 2013 - 47,627,245 | 100,652 | 100,513 |
Additional paid in capital | 23,108 | 22,850 |
Accumulated deficit during exploration stage | -110,533 | -99,441 |
Total shareholders' equity | 13,227 | 23,922 |
Total liabilities and shareholders' equity | $14,708 | $25,865 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Statement of Financial Position [Abstract] | ' | ' | ||
Common Stock, Par Value | $0 | $0 | ||
Common Stock, Shares Authorized | 0 | [1] | 0 | [1] |
Common Stock, Shares Outstanding | 47,707,216 | 47,627,245 | ||
[1] | unlimited shares authorized |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | 172 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
Operating income and (expenses): | ' | ' | ' | ' | ' |
Exploration and evaluation | ($2,305) | ($5,565) | ($7,164) | ($10,421) | ($62,369) |
Corporate administration | -1,038 | -1,501 | -3,585 | -4,916 | -45,787 |
Depreciation | -60 | -49 | -163 | -146 | -622 |
Write-down of mineral property | 0 | 0 | 0 | 0 | -2,924 |
Total operating expenses | -3,403 | -7,115 | -10,912 | -15,483 | -111,702 |
Non-operating income (expenses): | ' | ' | ' | ' | ' |
Interest income | 14 | 32 | 65 | 207 | 2,273 |
Gain/(loss) on currency translation | -212 | 267 | -361 | -1,238 | -262 |
Other income/(expense) | 0 | 0 | 0 | -50 | -30 |
Loss on sale of marketable securities | 0 | 0 | 0 | -39 | -57 |
Gain/(loss) on derivatives | 0 | -39 | 116 | 96 | -755 |
Total non-operating income/(expenses) | -198 | 260 | -180 | -1,024 | 1,169 |
Net loss | -3,601 | -6,855 | -11,092 | -16,507 | -110,533 |
Other comprehensive income/(loss) | ' | ' | ' | ' | ' |
Realized loss on available-for-sale securities | 0 | 0 | 0 | 39 | 57 |
Unrealized gain/(loss) on available-for-sale securities | 0 | 0 | 0 | 4 | -57 |
Total other comprehensive income/(loss) | 0 | 0 | 0 | 43 | 0 |
COMPREHENSIVE LOSS | ($3,601) | ($6,855) | ($11,092) | ($16,464) | ($110,533) |
LOSS PER SHARE - BASIC AND DILUTED | ($0.08) | ($0.15) | ($0.23) | ($0.36) | ' |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 47,707,216 | 45,037,175 | 47,706,337 | 45,852,135 | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | 172 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net loss for the period | ($11,092) | ($16,507) | ($110,533) |
Adjustments to reconcile loss for the period to net cash and cash equivalents used in operations: | ' | ' | ' |
Depreciation | 163 | 146 | 622 |
Asset retirement obligation | 17 | 13 | 432 |
Fair value of warrants received pursuant to the sale of mineral properties | 0 | 0 | -15 |
Realized gain on derivatives | -14 | 0 | -164 |
Unrealized (gain)/loss on derivatives | -103 | -96 | 918 |
Write-down of mineral property | 0 | 0 | 1,891 |
Gain on currency translation | 0 | 0 | -17 |
Loss on disposal of marketable securities | 0 | 39 | 57 |
Gain on disposal of equipment | 0 | 0 | -3 |
Stock-based compensation | 439 | 1,173 | 23,366 |
Changes in non-cash working capital | ' | ' | ' |
Accounts receivable | 7 | -34 | -163 |
Interest receivable | 4 | 299 | -8 |
Prepaid expenses | 1 | -292 | -413 |
Accounts payable and accrued liabilities | -362 | -357 | 1,023 |
Due to related party | 0 | 0 | -28 |
Net cash and cash equivalents used in operating activities | -10,940 | -15,616 | -83,035 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of marketable securities | 0 | 0 | -207 |
Purchases of short-term investments | 0 | -9,823 | -24,941 |
Additions to mineral properties, net of cost recoveries | 0 | 0 | -29 |
Additions to restricted cash | 0 | 0 | -422 |
Release of restricted cash | 0 | 0 | 422 |
Purchases of equipment | -33 | -192 | -1,014 |
Purchases of Land | 0 | -980 | -980 |
Proceeds from sale of marketable securities | 0 | 36 | 186 |
Proceeds from sale of short-term investments | 0 | 24,941 | 24,941 |
Payments received for sale/option of mineral properties | 0 | 0 | 279 |
Net cash and cash equivalents provided by (used in) investing activities | -33 | 13,982 | -1,765 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Advance of promissory note | 0 | 0 | 111 |
Repayment of promissory note | 0 | 0 | -129 |
Cash received for common shares, net of share issuance costs | -42 | 7,518 | 102,274 |
Shares subscribed | 0 | 0 | -4,788 |
Net cash and cash equivalents provided by financing activities | -42 | 7,518 | 97,468 |
Cash acquired in capital transaction | 0 | 0 | 219 |
Increase/(decrease) in cash and cash equivalents | -11,015 | 5,884 | 12,887 |
Cash and cash equivalents - beginning of the period | 23,902 | 24,985 | 0 |
Cash and cash equivalents - end of the period | $12,887 | $30,869 | $12,887 |
1_NATURE_OF_OPERATIONS
1. NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NATURE OF OPERATIONS | ' |
Rare Element Resources Ltd. (collectively, “we,” “Rare Element” or the “Company”) was incorporated under the laws of the Province of British Columbia, Canada, on June 3, 1999. | |
We are focused on advancing the Bear Lodge Rare Earth Element (“REE”) Project located near the town of Sundance in northeast Wyoming. The Bear Lodge REE Project consists of a large disseminated REE deposit and a proposed hydrometallurgical plant to be located near Upton, Wyoming. The REE deposit is one of the highest grade REE deposits identified in North America and one of the highest grade europium deposits in the world. In addition, the Bear Lodge REE Project has a favorable distribution of the remaining critical rare earth elements (“CREEs”), which the Company defines as neodymium, europium, dysprosium, praseodymium, terbium, and yttrium. At present, we are undertaking advanced engineering, process confirmation, geological modeling and technical studies while working toward obtaining the necessary permits and licenses to enable us to develop the Bear Lodge REE Project. Based on review of current permitting timetables and other factors, the Company currently projects project commissioning to begin in mid-2017, subject to permitting, financing, FS finalization and other factors, including, but not limited to, production of marketable products from the larger-scale demonstration project and contractual arrangements with potential off-take customers. In accordance with U.S. GAAP, we are an exploration stage entity. To date, we have no revenue and have an accumulated operating deficit of $110,533 of which $62,369 is attributable to the exploration and evaluation of our mineral interests. | |
Our continuing operations and the recoverability of the carrying values of our mineral property interests are dependent upon the development, mining and processing of economic mineral reserves at the Bear Lodge REE Project, our ability to obtain the necessary permits and licenses to mine and process these mineral reserves and on the future profitable production of these mineral reserves. Development and/or start-up of the Bear Lodge REE Project are also dependent upon our ability to obtain the necessary financing to construct and complete the Bear Lodge REE Project. Although we have been successful in raising capital in the past, there can be no assurance that we will be able to do so in the future. | |
2_BASIS_OF_PRESENTATION
2. BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
BASIS OF PRESENTATION | ' |
In accordance with U.S. GAAP for interim financial statements, these consolidated financial statements do not include certain information and note disclosures that are normally included in annual financial statements prepared in conformity with U.S. GAAP. Accordingly, these unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements as of December 31, 2013, which were included in our Annual Report on Form 10-K for the period ended December 31, 2013. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (which are of a normal, recurring nature) necessary to present fairly in all material respects our financial position as of September 30, 2014, and the results of our operations and cash flows for the three and nine months ended September 30, 2014 and 2013 in conformity with U.S. GAAP. Interim results of operations for the three and nine months ended September 30, 2014 may not be indicative of results that will be realized for the full year ending December 31, 2014. | |
Recent Accounting Pronouncements | |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. We are currently assessing the impact the adoption of ASU 2014-15 will have on our financial statements and related disclosures. | |
In June 2014, the FASB issued ASU No. 2014-10, which amended Accounting Standards Codification (ASC) Topic 915 Development Stage Entities. The amendment eliminates certain financial reporting requirements surrounding development stage entities, including an amendment to the variable interest entities guidance in ASC Topic 810, Consolidation. The amendment removes the definition of a development stage entity from the ASC, thereby removing the financial reporting distinction between development stage entities and other entities from U.S. GAAP. Consequently, the amendment eliminates the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose the first year in which the entity is no longer a development stage entity. This amendment is effective for fiscal years beginning after December 15, 2014, and interim periods therein. Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued. We are currently assessing the impact the adoption of ASU 2014-10 will have on our financial statements and related disclosures. |
3_FAIR_VALUE_OF_FINANCIAL_INST
3. FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Fair Value Disclosures [Abstract] | ' | |||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||
Our financial instruments can consist of cash and cash equivalents, marketable securities, accounts receivable, restricted cash, accounts payable and accrued liabilities. Included, at times, within cash and cash equivalents is an enhanced yield deposit account that contains an embedded derivative in the form of a foreign currency option. Due to the short-term nature of the option contract and the relatively low volatility between the U.S. dollar and Canadian dollar, the liability portion of the derivative instrument is de minimis. As of September 30, 2014, the Company had no such deposits. U.S. GAAP defines “fair value” as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a fair-value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority): | ||||||||
· | Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||
· | Level 2 — Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. | |||||||
· | Level 3 — Prices or valuation techniques requiring inputs that are both significant to the fair-value measurement and unobservable. | |||||||
The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. Periodically throughout the year, the Company has maintained balances in various U.S. operating accounts in excess of U.S. federally insured limits. | ||||||||
The following table presents information about financial instruments recognized at fair value on a recurring basis as of September 30, 2014 and December 31, 2013, and indicates the fair value hierarchy: | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||
Assets | ||||||||
Cash and cash equivalents | $12,887 | $ - | $12,887 | $23,902 | $ - | $23,902 | ||
Total financial assets | $12,887 | $ - | $12,887 | $23,902 | $ - | $23,902 | ||
Liabilities | ||||||||
Accounts payable and other accrued liabilities | $ 1,049 | $ - | $ 1,049 | $ 1,425 | $ - | $ 1,425 | ||
Asset retirement obligation | - | 432 | 432 | - | 415 | 415 | ||
Derivative liabilities | - | - | - | - | 103 | 103 | ||
Total financial assets and liabilities | $13,936 | $ 432 | $14,368 | $25,327 | $ 518 | $25,845 |
4_EQUIPMENT
4. EQUIPMENT | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
EQUIPMENT | ' | |||||||
September 30, 2014 | December 31, 2013 | |||||||
Cost | Accumulated depreciation | Net book value | Cost | Accumulated depreciation | Net book value | |||
Computer equipment | $ 189 | $ 160 | $ 29 | $ 169 | $ 118 | $ 51 | ||
Furniture | 111 | 60 | 51 | 111 | 48 | 63 | ||
Geological equipment | 488 | 294 | 194 | 488 | 217 | 271 | ||
Vehicles | 221 | 104 | 117 | 208 | 72 | 136 | ||
$ 1,009 | $ 618 | $ 391 | $ 976 | $ 455 | $ 521 |
5_SHAREHOLDERS_EQUITY
5. SHAREHOLDERS' EQUITY | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Equity [Abstract] | ' | ||||
5. SHAREHOLDERS' EQUITY | ' | ||||
Common Shares | |||||
Number of shares issued | Common shares ($) | ||||
As of December 31, 2013 | 47,627,245 | $ 100,513 | |||
Exercise of stock options - cash | - | - | |||
Exercise of stock options - fair value | 79,971 | 139 | |||
Issued during the nine-months ended September 30, 2014 | - | - | |||
As of September 30, 2014 | 47,707,216 | $ 100,652 | |||
On January 2, 2014, a cashless exercise was made resulting in the issuance of 79,971 shares. Due to the nature of the cashless exercise, no cash was received by the Company and share issuance costs of $42 were incurred. | |||||
Warrants | |||||
Outstanding warrants include 1,338,688 warrants, each exercisable for one of the Company’s common shares, issued to investors in connection with the September 27, 2013 registered direct offering. The exercise price and exercise period of each warrant are $4.15 and three years, respectively. | |||||
In addition, the Company issued to an agent in connection with the September 27, 2013 offering 133,869 warrants, under the same terms as those issued to investors. | |||||
6_ADDITIONAL_PAID_IN_CAPITAL
6. ADDITIONAL PAID IN CAPITAL | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Additional Paid in Capital [Abstract] | ' | ||||||||
ADDITIONAL PAID IN CAPITAL | ' | ||||||||
Stock-based compensation | |||||||||
We have options outstanding and exercisable that were issued under two plans, the Fixed Stock Option Plan (“FSOP”) and the 10% Rolling Stock Option Plan (“RSOP”). | |||||||||
The FSOP was originally approved by shareholders on December 11, 2002, and subsequently approved by shareholders on December 7, 2009, following certain amendments to the FSOP. The FSOP expired upon the adoption of the RSOP that was approved by shareholders on December 2, 2011, and as such, we may no longer grant options under the FSOP. However, the terms of the FSOP continue to govern all prior awards granted under such plan until such awards have been cancelled, forfeited or exercised in accordance with the terms thereof. As of September 30, 2014, we had 1,915,000 options outstanding under our FSOP, as amended, and 2,430,500 options outstanding under our RSOP. | |||||||||
The fair value of each employee stock option award is estimated at the grant date using a Black-Scholes option pricing model and the price of our common shares on the date of grant. The significant assumptions used to estimate the fair value of stock options awarded during the nine-months ended September 30, 2014 and 2013 using a Black-Scholes model are as follows: | |||||||||
Nine-months ended September 30, | |||||||||
2014 | 2013 | ||||||||
Risk-free interest rate | 0.93% - 0.99% | 0.35% - 0.59% | |||||||
Expected volatility | 74.7% - 79.1% | 80.0% - 84.0% | |||||||
Expected dividend yield | Nil | Nil | |||||||
Expected term in years | 3.25 – 3.28 | 3 | |||||||
Estimated forfeiture rate | 3.68% - 3.72% | 3.90% | |||||||
The compensation expense recognized in our consolidated financial statements for the three and nine months ended September 30, 2014 for stock option awards was $121 and $439, respectively, and $219 and $1,173 for the same periods in 2013. As of September 30, 2014, there was $159 of total unrecognized compensation cost related to 572,500 unvested stock options that is expected to be recognized over a weighted-average remaining vesting period of 0.67 years. | |||||||||
The following table summarizes our stock option activity for each of the nine-month periods ended September 30: | |||||||||
2014 | 2013 | ||||||||
Number of Stock Options | Weighted Average Exercise Price | Number of Stock Options | Weighted Average Exercise Price | ||||||
Outstanding, beginning of period | 4,700,500 | $ 5.51 | 4,331,000 | $ 6.42 | |||||
Granted | 275,000 | 1.28 | 185,000 | 2.04 | |||||
Cancelled | -480,000 | 4.73 | -248,000 | 6.63 | |||||
Exercised | (150,000) | 0.52 | - | - | |||||
Outstanding, end of period | 4,345,500 | $ 5.29 | 4,268,000 | $ 6.06 | |||||
Exercisable, end of period | 3,773,000 | $ 5.88 | 3,786,000 | $ 6.41 | |||||
Weighted-average fair value per share of options granted during period | $ 0.65 | $ 1.07 |
7_COMMITMENTS_AND_CONTINGENCIE
7. COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
Our commitments and contingencies include the following items: | |
Potential environmental contingency | |
Our mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment and believes its operations are materially in compliance with all applicable laws and regulations. We have made, and expect to make in the future, expenditures to comply with such laws and regulations. The ultimate amount of reclamation and other future site-restoration costs to be incurred for existing mining interests is uncertain. |
8_SUPPLEMENTAL_DISCLOSURE_WITH
8. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | 9 Months Ended |
Sep. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ' |
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | ' |
For the nine-months ended September 30, 2014 and 2013, supplemental cash flow items consisted of interest received of $65 and $515, respectively. |
3_FAIR_VALUE_OF_FINANCIAL_INST1
3. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Fair Value Disclosures [Abstract] | ' | |||||||
SCHEDULE OF FAIR VALUE OF INSTRUMENTS | ' | |||||||
30-Sep-14 | 31-Dec-13 | |||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||
Assets | ||||||||
Cash and cash equivalents | $12,887 | $ - | $12,887 | $23,902 | $ - | $23,902 | ||
Total financial assets | $12,887 | $ - | $12,887 | $23,902 | $ - | $23,902 | ||
Liabilities | ||||||||
Accounts payable and other accrued liabilities | $ 1,049 | $ - | $ 1,049 | $ 1,425 | $ - | $ 1,425 | ||
Asset retirement obligation | - | 432 | 432 | - | 415 | 415 | ||
Derivative liabilities | - | - | - | - | 103 | 103 | ||
Total financial assets and liabilities | $13,936 | $ 432 | $14,368 | $25,327 | $ 518 | $25,845 |
4_EQUIPMENT_AND_LANDTables
4. EQUIPMENT AND LAND(Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
SCHEDULE OF EQUIPMENT AND LAND | ' | |||||||
September 30, 2014 | December 31, 2013 | |||||||
Cost | Accumulated depreciation | Net book value | Cost | Accumulated depreciation | Net book value | |||
Computer equipment | $ 189 | $ 160 | $ 29 | $ 169 | $ 118 | $ 51 | ||
Furniture | 111 | 60 | 51 | 111 | 48 | 63 | ||
Geological equipment | 488 | 294 | 194 | 488 | 217 | 271 | ||
Vehicles | 221 | 104 | 117 | 208 | 72 | 136 | ||
$ 1,009 | $ 618 | $ 391 | $ 976 | $ 455 | $ 521 |
5_SHAREHOLDERS_EQUITY_Tables
5. SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Equity [Abstract] | ' | ||||
SCHEDULE OF SHARES ACTIVITY | ' | ||||
Number of shares issued | Common shares ($) | ||||
As of December 31, 2013 | 47,627,245 | $ 100,513 | |||
Exercise of stock options - cash | - | - | |||
Exercise of stock options - fair value | 79,971 | 139 | |||
Issued during the nine-months ended September 30, 2014 | - | - | |||
As of September 30, 2014 | 47,707,216 | $ 100,652 |
6_ADDITIONAL_PAIDIN_CAPITAL_Ta
6. ADDITIONAL PAID-IN CAPITAL (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Additional Paid in Capital [Abstract] | ' | ||||||||
Fair value assumptions | ' | ||||||||
Nine-months ended September 30, | |||||||||
2014 | 2013 | ||||||||
Risk-free interest rate | 0.93% - 0.99% | 0.35% - 0.59% | |||||||
Expected volatility | 74.7% - 79.1% | 80.0% - 84.0% | |||||||
Expected dividend yield | Nil | Nil | |||||||
Expected term in years | 3.25 – 3.28 | 3 | |||||||
Estimated forfeiture rate | 3.68% - 3.72% | 3.90% | |||||||
Stock option activity | ' | ||||||||
2014 | 2013 | ||||||||
Number of Stock Options | Weighted Average Exercise Price | Number of Stock Options | Weighted Average Exercise Price | ||||||
Outstanding, beginning of period | 4,700,500 | $ 5.51 | 4,331,000 | $ 6.42 | |||||
Granted | 275,000 | 1.28 | 185,000 | 2.04 | |||||
Cancelled | -480,000 | 4.73 | -248,000 | 6.63 | |||||
Exercised | (150,000) | 0.52 | - | - | |||||
Outstanding, end of period | 4,345,500 | $ 5.29 | 4,268,000 | $ 6.06 | |||||
Exercisable, end of period | 3,773,000 | $ 5.88 | 3,786,000 | $ 6.41 | |||||
Weighted-average fair value per share of options granted during period | $ 0.65 | $ 1.07 |
1_NATURE_OF_OPERATIONS_Details
1. NATURE OF OPERATIONS (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | 172 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' | ' |
Accumulated Operating Deficit | ($3,601) | ($6,855) | ($11,092) | ($16,507) | ($110,533) |
Accumulated operating deficit attributable to the exploration of our mineral interests | $62,369 | ' | $62,369 | ' | $62,369 |
3_FAIR_VALUE_OF_FINANCIAL_INST2
3. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 02, 2000 |
In Thousands, unless otherwise specified | |||||
Assets | ' | ' | ' | ' | ' |
Cash and cash equivalents | $12,887 | $23,902 | $30,869 | $24,985 | $0 |
Total financial assets | 12,887 | 23,902 | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' |
Accounts payable and other accrued liabilities | 1,049 | 1,425 | ' | ' | ' |
Asset retirement obligation | 432 | 415 | ' | ' | ' |
Derivative liabilities | 0 | 103 | ' | ' | ' |
Total financial assets and liabilities | 14,368 | 25,845 | ' | ' | ' |
Level 1 | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' |
Cash and cash equivalents | 12,887 | 23,902 | ' | ' | ' |
Total financial assets | 12,887 | 23,902 | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' |
Accounts payable and other accrued liabilities | 1,049 | 1,425 | ' | ' | ' |
Asset retirement obligation | 0 | 0 | ' | ' | ' |
Derivative liabilities | 0 | 0 | ' | ' | ' |
Total financial assets and liabilities | 13,936 | 25,327 | ' | ' | ' |
Level 2 | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' | ' | ' |
Total financial assets | 0 | 0 | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' |
Accounts payable and other accrued liabilities | 0 | 0 | ' | ' | ' |
Asset retirement obligation | 432 | 415 | ' | ' | ' |
Derivative liabilities | 0 | 103 | ' | ' | ' |
Total financial assets and liabilities | $432 | $518 | ' | ' | ' |
4_EQUIPMENT_AND_LAND_Details
4. EQUIPMENT AND LAND (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cost | $1,009 | $976 |
Accumulated depreciation | 618 | 455 |
Net book value | 391 | 521 |
Computer equipment | ' | ' |
Cost | 189 | 169 |
Accumulated depreciation | 160 | 118 |
Net book value | 29 | 51 |
Furniture | ' | ' |
Cost | 111 | 111 |
Accumulated depreciation | 60 | 48 |
Net book value | 51 | 63 |
Geological equipment | ' | ' |
Cost | 488 | 488 |
Accumulated depreciation | 294 | 217 |
Net book value | 194 | 271 |
Vehicles | ' | ' |
Cost | 221 | 208 |
Accumulated depreciation | 104 | 72 |
Net book value | $117 | $136 |
5_SHAREHOLDERS_EQUITY_Details
5. SHAREHOLDERS' EQUITY (Details) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 |
Shareholders Equity Details | ' |
Number of shares issued, beginning | 47,627,245 |
Shares issued amount, beginning | $100,513 |
Exercise of stock options - fair value, shares | 79,971 |
Exercise of stock options - fair value, amount | 139 |
Shares issued, shares | 0 |
Shares issued, amount | 0 |
Number of shares issued, ending | 47,707,216 |
Shares issued amount, ending | $100,652 |
6_ADDITIONAL_PAIDIN_CAPITAL_De
6. ADDITIONAL PAID-IN CAPITAL (Details) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' |
Risk free interest rate, minimum | 0.93% | 0.35% |
Risk free interest rate, maximum | 0.99% | 0.59% |
Expected volatiility, minimum | 74.70% | 80.00% |
Expected volatiility, maximum | 79.10% | 84.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected term in years, min | '3 years 3 months | '3 years |
Expected term in years, max | '3 years 3 months 11 days | ' |
Estimated forfeiture rate, min | 3.68% | 3.90% |
Estimated forfeiture rate, max | 3.72% | ' |
6_ADDITIONAL_PAIDIN_CAPITAL_De1
6. ADDITIONAL PAID-IN CAPITAL (Details 1) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Number of Options | ' | ' |
Number of Options Outstanding, Beginning | 4,700,500 | 4,331,000 |
Number of Options Granted | 275,000 | 185,000 |
Number of Options Cancelled | -480,000 | -248,000 |
Number of Options Exercised | -150,000 | 0 |
Number of Options Outstanding, Ending | 4,345,500 | 4,268,000 |
Number of Options Exercisable | 3,773,000 | 3,786,000 |
Weighted Average Exercise Price | ' | ' |
Weighted Average Exercise Price Outstanding, Beginning | $5.51 | $6.42 |
Weighted Average Exercise Price Granted | $1.28 | $2.04 |
Weighted Average Exercise Price Cancelled | $4.73 | $6.63 |
Weighted Average Exercise Price Exercised | $0.52 | $0 |
Weighted Average Exercise Price Outstanding, Ending | $5.29 | $6.06 |
Weighted Average Exercise Price Exercisable | $5.88 | $6.41 |
Weighted-average fair value per share of options granted during the period | $0.65 | $1.07 |
6_ADDITIONAL_PAID_IN_CAPITAL_D
6. ADDITIONAL PAID IN CAPITAL (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | 172 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
Additional Paid in Capital [Abstract] | ' | ' | ' | ' | ' |
Compensation Expense | $121 | $219 | $439 | $1,173 | $23,366 |
Unrecognized compensation cost related to unvested stock options | $159 | ' | $159 | ' | $159 |
8_SUPPLEMENTAL_DISCLOSURE_WITH1
8. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Details Narrative) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Interest received | $65 | $515 |