Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 06, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Rare Element Resources Ltd | |
Entity Central Index Key | 1,419,806 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
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 | 52,940,838 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 8,396 | $ 10,139 |
Interest receivable | 23 | 6 |
Accounts receivable | 16 | 21 |
Prepaid expenses | 146 | 315 |
Total Current Assets | 8,581 | 10,481 |
Equipment, net | 269 | 344 |
Land | 980 | 980 |
Mineral properties | 27 | 27 |
Total assets | 9,857 | 11,832 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 498 | 1,098 |
Asset retirement obligation, current portion | 164 | 164 |
Total Current Liabilities | 662 | 1,262 |
Asset retirement obligation, non-current portion | 202 | 202 |
Total liabilities | 864 | 1,464 |
SHAREHOLDERS' EQUITY: | ||
Common shares, no par value - unlimited shares authorized; shares outstanding June 30, 2015 - 52,940,838, December 31, 2014 - 47,707,216 | 103,638 | 100,652 |
Additional paid in capital | 23,397 | 23,186 |
Accumulated deficit | (118,042) | (113,470) |
Total Shareholders' Equity | 8,993 | 10,368 |
Total Liabilities and Shareholders' Equity | $ 9,857 | $ 11,832 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 | |
Statement of Financial Position [Abstract] | |||
Common Stock, Par Value | $ 0 | $ 0 | |
Common Stock, Shares Authorized | [1] | 0 | 0 |
Common Stock, Shares Outstanding | 52,940,838 | 47,707,216 | |
[1] | unlimited shares authorized |
CONSOLIDATED UNAUDITED STATEMEN
CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating income (expenses): | ||||
Exploration and evaluation | $ (1,199) | $ (2,038) | $ (2,317) | $ (4,859) |
Corporate administration | (919) | (1,199) | (1,929) | (2,547) |
Depreciation | (30) | (51) | (75) | (103) |
Total operating expenses | (2,148) | (3,288) | (4,321) | (7,509) |
Non-operating income (expenses): | ||||
Interest income | 9 | 22 | 18 | 51 |
Gain/(loss) on currency translation | 42 | 197 | (269) | (149) |
Gain/(loss) on derivatives | 0 | 9 | 0 | 116 |
Total non-operating income (expense) | 51 | 228 | (251) | 18 |
Net loss | (2,097) | (3,060) | (4,572) | (7,491) |
Other comprehensive loss | ||||
Realized loss on available-for-sale securities | 0 | 0 | 0 | 0 |
Unrealized (gain)/loss on available-for-sale securities | 0 | 0 | 0 | 0 |
Total other comprehensive income/(loss) | 0 | 0 | 0 | 0 |
COMPREHENSIVE LOSS | $ (2,097) | $ (3,060) | $ (4,572) | $ (7,491) |
LOSS PER SHARE - BASIC AND DILUTED | $ (0.04) | $ (0.06) | $ (0.09) | $ (0.16) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 51,272,134 | 47,707,216 | 49,499,523 | 47,705,891 |
CONSOLIDATED UNAUDITED STATEME5
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss for the period | $ (4,572) | $ (7,491) |
Adjustments to reconcile net loss for the period to net cash and cash equivalents used in operating activities: | ||
Depreciation | 75 | 103 |
Asset retirement obligation | 0 | 17 |
Realized gain on derivatives | 0 | (14) |
Unrealized (gain)/loss on derivatives | 0 | (103) |
Stock-based compensation | 121 | 318 |
Changes in non-cash working capital | ||
Accounts receivable | 5 | 2 |
Interest receivable | (17) | 4 |
Prepaid expenses | 169 | 116 |
Accounts payable and accrued liabilities | (600) | (703) |
Net cash and cash equivalents used in operating activities | (4,819) | (7,751) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of equipment | (2) | (33) |
Proceeds from sale of equipment | 2 | 0 |
Net cash and cash equivalents used in investing activities | 0 | (33) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash received for common shares, net of share issuance costs | 3,076 | (42) |
Net cash and cash equivalents used in financing activities | 3,076 | (42) |
Decrease in cash and cash equivalents | (1,743) | (7,826) |
Cash and cash equivalents - beginning of the period | 10,139 | 23,902 |
Cash and cash equivalents - end of the period | $ 8,396 | $ 16,076 |
1. NATURE OF OPERATIONS
1. NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2015 | |
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 several large, disseminated REE deposits and a proposed hydrometallurgical plant to be located near Upton, Wyoming. The Bear Lodge REE Project 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, praseodymium, dysprosium, europium, terbium and yttrium. At present, we are undertaking process confirmation, elemental separation test work, 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 anticipates receiving its permits in the second half of 2016. The Company is working in parallel (with permitting activities) to advance engineering in preparation for the feasibility study, to gain strategic partners and off-take customers, to design and engineer a commercial-scale demonstration plant and to scale up its RE separation test work in pilot plant testing. Subject to the (i) availability of adequate capital, (ii) a positive FS, (iii) securing off-take customers, (iv) obtaining necessary permits, (v) board approval, and (vi) other factors, the Company will be able to begin construction activities on the Project. 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. In addition, development and start-up of the Bear Lodge REE Project are 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 | 6 Months Ended |
Jun. 30, 2015 | |
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, 2014, which were included in our Annual Report on Form 10-K for the period ended December 31, 2014. 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 June 30, 2015, and the results of our operations and cash flows for the six months ended June 30, 2015 and 2014 in conformity with U.S. GAAP. Interim results of operations for the six months ended June 30, 2015 may not be indicative of results that will be realized for the full year ending December 31, 2015. 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 Entitys Ability to Continue as a Going Concern (ASU 2014-15). ASU 2014-15 is intended to define managements responsibility to evaluate whether there is substantial doubt about an organizations 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 that 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 under 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 shareholders 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 entitys financial statements have not yet been issued. The Company made the election to early adopt this amendment effective December 31, 2014 and, as a result, the Company is no longer presenting or disclosing the information previously required under Topic 915. The early adoption was made to reduce data maintenance by removing all incremental financial reporting requirements for the Company. The adoption of this amendment alters the disclosure requirements of the Company, but it does not have any impact on the Companys financial position or results of operations for the current or any prior reporting period. |
3. FAIR VALUE OF FINANCIAL INST
3. FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2015 | |
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. As of June 30, 2015, 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 by 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 June 30, 2015 and December 31, 2014, and indicates the fair value hierarchy: June 30, 2015 December 31, 2014 Level 1 Level 2 Total Level 1 Level 2 Total Assets Cash and cash equivalents $ 8,396 $ - $ 8,396 $ 10,139 $ - $ 10,139 Total financial assets $ 8,396 $ - $ 8,396 $ 10,139 $ - $ 10,139 Liabilities Accounts payable and accrued liabilities $ 498 $ - $ 498 $ 1,098 $ - $ 1,098 Asset retirement obligation - 366 366 - 366 366 Total financial assets and liabilities $ 8,894 $ 366 $ 9,260 $ 11,237 $ 366 $ 11,603 |
4. EQUIPMENT
4. EQUIPMENT | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
EQUIPMENT | June 30, 2015 December 31, 2014 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Computer equipment $ 186 $ 174 $ 12 $ 189 $ 168 $ 21 Furniture 106 68 38 111 64 47 Geological equipment 488 356 132 488 319 169 Vehicles 221 134 87 221 114 107 $ 1,001 $ 732 $ 269 $ 1,009 $ 665 $ 344 |
5. SHAREHOLDERS' EQUITY
5. SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
5. SHAREHOLDERS' EQUITY | Common Shares Number of Shares Issued Common Shares ($000s) As of December 31, 2014 47,707,216 $ 100,652 April 29, 2015 registered direct offering 5,230,770 2,985 Exercise of stock options - fair value 2,852 1 Issued during the six-months ended June 30, 2015 5,233,622 2,986 As of June 30, 2015 52,940,838 $ 103,638 On April 29, 2015, the Company closed its $3,400 offering of common shares and warrants in a registered direct offering in the United States resulting in net proceeds of $3,076 after expenses. The Company sold an aggregate of 5,230,770 common shares and 2,615,385 warrants at a price of $0.65 per unit. Warrants Each outstanding warrant is exercisable for one of the Companys common shares and was issued to investors in connection with registered direct offerings of the Company that closed on September 27, 2013 and April 29, 2015. In addition, the Company issued warrants to a placement agent in connection with each offering, under the same terms as those issued to investors. The exercise price and exercise period are outlined below: Financing Investor Warrants Placement Agent Warrants Total Warrants Exercise Price Expiration Date September 27, 2013 offering 1,338,688 133,869 1,472,557 $4.15 9/27/16 April 29, 2015 offering 2,615,385 261,539 2,876,924 $0.85 4/29/18 Total Warrants Outstanding as of June 30, 2015 4,349,481 The value of the warrants issued to the placement agent (non-employee) for its services in connection with the April 29, 2015 offering was offset against the proceeds of the financing. The Company used a Black-Scholes model with inputs including a market price of the Companys stock of $0.72, an exercise price of $0.85, a 3.0-year term, volatility of 81.0%, a risk-free rate of 0.91% and no assumed dividends. The value of the warrants issued to the placement agent for its services in connection with the April 29, 2015 offering was estimated at $91. |
6. ADDITIONAL PAID IN CAPITAL
6. ADDITIONAL PAID IN CAPITAL | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015, we had 1,290,000 options outstanding under our FSOP, as amended, and 3,298,900 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 six-months ended June 30, 2015 and 2014, using a Black-Scholes model are as follows: June 30, 2015 2014 Risk-free interest rate 1.0% - 1.1% 0.93% - 0.99% Expected volatility 73.4% - 79.7% 74.7% - 79.1% Expected dividend yield Nil Nil Expected term in years 3.4 3.25 3.28 Estimated forfeiture rate 3.4% - 3.6% 3.7% The compensation expense recognized in our consolidated financial statements for the three and six months ended June 30, 2015 for stock option awards was $48 and $121, respectively, and $130 and $318 for the same periods in 2014. As of June 30, 2015, there was $199 of total unrecognized compensation cost related to 995,200 unvested stock options that is expected to be recognized over a weighted-average remaining vesting period of 0.86 years. The following table summarizes our stock option activity for each of the six-month periods ended June 30, 2015 and 2014: 2015 2014 Number of Stock Options Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price Outstanding, beginning of period 4,345,500 $ 5.16 4,700,500 $ 5.51 Granted 999,000 0.45 275,000 1.28 Cancelled/expired (749,600) 3.16 (280,000) 6.74 Exercised (6,000) 0.32 (150,000) 0.52 Outstanding, end of period 4,588,900 $ 4.25 4,545,500 $ 5.31 Exercisable, end of period 3,593,700 $ 5.28 3,852,500 $ 6.01 Weighted-average fair value per share of options granted during period $ 0.24 $ 0.65 |
7. COMMITMENTS AND CONTINGENCIE
7. COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
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 over time. 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. |
3. FAIR VALUE OF FINANCIAL IN13
3. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUE OF INSTRUMENTS | June 30, 2015 December 31, 2014 Level 1 Level 2 Total Level 1 Level 2 Total Assets Cash and cash equivalents $ 8,396 $ - $ 8,396 $ 10,139 $ - $ 10,139 Total financial assets $ 8,396 $ - $ 8,396 $ 10,139 $ - $ 10,139 Liabilities Accounts payable and accrued liabilities $ 498 $ - $ 498 $ 1,098 $ - $ 1,098 Asset retirement obligation - 366 366 - 366 366 Total financial assets and liabilities $ 8,894 $ 366 $ 9,260 $ 11,237 $ 366 $ 11,603 |
4. EQUIPMENT (Tables)
4. EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF EQUIPMENT | June 30, 2015 December 31, 2014 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Computer equipment $ 186 $ 174 $ 12 $ 189 $ 168 $ 21 Furniture 106 68 38 111 64 47 Geological equipment 488 356 132 488 319 169 Vehicles 221 134 87 221 114 107 $ 1,001 $ 732 $ 269 $ 1,009 $ 665 $ 344 |
5. SHAREHOLDERS' EQUITY (Tables
5. SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
SCHEDULE OF OPTION ACTIVITY | Number of Shares Issued Common Shares ($000s) As of December 31, 2014 47,707,216 $ 100,652 April 29, 2015 registered direct offering 5,230,770 2,985 Exercise of stock options - fair value 2,852 1 Issued during the six-months ended June 30, 2015 5,233,622 2,986 As of June 30, 2015 52,940,838 $ 103,638 |
SCHEDULE OF WARRANT ACTIVITY | Financing Investor Warrants Placement Agent Warrants Total Warrants Exercise Price Expiration Date September 27, 2013 offering 1,338,688 133,869 1,472,557 $4.15 9/27/16 April 29, 2015 offering 2,615,385 261,539 2,876,924 $0.85 4/29/18 Total Warrants Outstanding as of June 30, 2015 4,349,481 |
6. ADDITIONAL PAID-IN CAPITAL (
6. ADDITIONAL PAID-IN CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Additional Paid in Capital [Abstract] | |
Fair value assumptions | June 30, 2015 2014 Risk-free interest rate 1.0% - 1.1% 0.93% - 0.99% Expected volatility 73.4% - 79.7% 74.7% - 79.1% Expected dividend yield Nil Nil Expected term in years 3.4 3.25 3.28 Estimated forfeiture rate 3.4% - 3.6% 3.7% |
Stock option activity | 2015 2014 Number of Stock Options Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price Outstanding, beginning of period 4,345,500 $ 5.16 4,700,500 $ 5.51 Granted 999,000 0.45 275,000 1.28 Cancelled/expired (749,600) 3.16 (280,000) 6.74 Exercised (6,000) 0.32 (150,000) 0.52 Outstanding, end of period 4,588,900 $ 4.25 4,545,500 $ 5.31 Exercisable, end of period 3,593,700 $ 5.28 3,852,500 $ 6.01 Weighted-average fair value per share of options granted during period $ 0.24 $ 0.65 |
3. FAIR VALUE OF FINANCIAL IN17
3. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 8,396 | $ 10,139 | $ 16,076 | $ 23,902 |
Total financial assets | 8,396 | 10,139 | ||
Liabilities | ||||
Accounts payable and other accrued liabilities | 498 | 1,098 | ||
Asset retirement obligation | 366 | 366 | ||
Total financial assets and liabilities | 9,260 | 11,603 | ||
Level 1 | ||||
Assets | ||||
Cash and cash equivalents | 8,396 | 10,139 | ||
Total financial assets | 8,396 | 10,139 | ||
Liabilities | ||||
Accounts payable and other accrued liabilities | 498 | 1,098 | ||
Asset retirement obligation | 0 | 0 | ||
Total financial assets and liabilities | 8,894 | 11,237 | ||
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 | 366 | 366 | ||
Total financial assets and liabilities | $ 366 | $ 366 |
4. EQUIPMENT (Details)
4. EQUIPMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Cost | $ 1,001 | $ 1,009 |
Accumulated depreciation | 732 | 665 |
Net book value | 269 | 344 |
Computer equipment | ||
Cost | 186 | 189 |
Accumulated depreciation | 174 | 168 |
Net book value | 12 | 21 |
Furniture | ||
Cost | 106 | 111 |
Accumulated depreciation | 68 | 64 |
Net book value | 38 | 47 |
Geological equipment | ||
Cost | 488 | 488 |
Accumulated depreciation | 356 | 319 |
Net book value | 132 | 169 |
Vehicles | ||
Cost | 221 | 221 |
Accumulated depreciation | 134 | 114 |
Net book value | $ 87 | $ 107 |
5. SHAREHOLDERS' EQUITY (Detail
5. SHAREHOLDERS' EQUITY (Details) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Equity [Abstract] | |
Number of shares issued, beginning | 47,707,216 |
Shares issued amount, beginning | $ 100,652 |
Exercise of stock options - fair value, shares | 2,852 |
Exercise of stock options - fair value, amount | $ 1 |
Shares issued, shares | 5,233,622 |
Shares issued, amount | $ 2,986 |
Number of shares issued, ending | 52,940,838 |
Shares issued amount, ending | $ 103,638 |
6. ADDITIONAL PAID-IN CAPITAL20
6. ADDITIONAL PAID-IN CAPITAL (Details) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Risk free interest rate (min) | 1.00% | 0.93% |
Risk free interest rate (max) | 1.10% | 0.99% |
Expected volatility (min) | 73.40% | 74.70% |
Expected volatility (max) | 79.70% | 79.10% |
Expected dividend yield | 0.00% | 0.00% |
Expected term in years | 3 years 4 months 22 days | |
Estimated forfeiture rate | 3.4% - 3.6% | 3.7% |
Minimum | ||
Expected term in years | 3 years 3 months | |
Maximum | ||
Expected term in years | 3 years 3 months 11 days |
6. ADDITIONAL PAID-IN CAPITAL21
6. ADDITIONAL PAID-IN CAPITAL (Details 1) - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Number of Stock Options | ||
Outstanding, beginning of period | 4,345,500 | 4,700,500 |
Granted | 999,000 | 275,000 |
Cancelled | (749,600) | (280,000) |
Exercised | (6,000) | (150,000) |
Outstanding, end of period | 4,588,900 | 4,545,500 |
Exercisable, end of period | 3,593,700 | 3,852,500 |
Weighted Average Exercise Price | ||
Outstanding, beginning of period | $ 5.16 | $ 5.51 |
Granted | 0.45 | 1.28 |
Cancelled | 3.16 | 6.74 |
Exercised | 0.32 | 0.52 |
Outstanding, end of period | 4.25 | 5.31 |
Exercisable, end of period | 5.28 | 6.01 |
Weighted-average fair value per share of options granted during period | $ 0.24 | $ 0.65 |
6. ADDITIONAL PAID IN CAPITAL (
6. ADDITIONAL PAID IN CAPITAL (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Options outstanding | 4,588,900 | 4,545,500 | 4,588,900 | 4,545,500 | 4,345,500 | 4,700,500 |
Compensation Expense | $ 48 | $ 130 | $ 121 | $ 318 | ||
Unrecognized compensation cost related to unvested stock options | $ 199 | $ 199 | ||||
Unvested stock options | 995,200 | 995,200 | ||||
Unrecognized compensation cost, Period for Recognition | 10 months 10 days | |||||
FSOP | ||||||
Options outstanding | 1,290,000 | 1,290,000 | ||||
RSOP | ||||||
Options outstanding | 3,298,900 | 3,298,900 |