Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Jul. 31, 2013 | Oct. 28, 2013 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Patriot Minefinders Inc. | |
Entity Central Index Key | 1424864 | |
Document Type | 10-K | |
Document Period End Date | 31-Jul-13 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -24 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2013 | |
Entity Voluntary Filers | No | |
Entity Well-Known Seasoned Issuer | No | |
Entity Public Float | $0.20 | |
Entity Common Stock Shares Outstanding | 63,800,000 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Current | ||
Cash | $10,146 | $1,930 |
Receivables | 17,113 | 10,228 |
Prepaid expenses | 19,393 | |
Total current assets | 27,259 | 31,551 |
Mineral property (Note 4) | 20,000 | |
Total assets | 27,259 | 51,551 |
Current | ||
Accounts payable and accrued liabilities | 518,884 | 147,387 |
Due to related parties (Note 5) | 67,100 | 67,100 |
Total liabilities | 585,984 | 214,487 |
Stockholders' deficit | ||
Capital stock, $0.001 par value, 1,680,000 shares authorized 63,400,000 shares issued and outstanding (Note 7) | 63,400 | 61,800 |
Additional paid-in-capital (Note 7) | 269,800 | -12,600 |
Deficit accumulated during the exploration stage | -891,925 | -212,136 |
Total stockholders' deficit | -558,725 | -162,936 |
Total liabilities and stockholders' deficit | $27,259 | $51,551 |
BALANCE_SHEETS_Parentheticals
BALANCE SHEETS (Parentheticals) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Balance Sheets [Abstract] | ||
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 1,680,000 | 1,680,000 |
Common Stock, Shares Issued | 63,400,000 | 61,800,000 |
Common Stock, Shares Outstanding | 63,400,000 | 61,800,000 |
STATEMENT_OF_OPERATIONS_AND_CO
STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | 78 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2013 | |
EXPENSES | |||
Consulting | $116,273 | $22,870 | $139,143 |
Filing | 23,374 | 15,995 | 39,369 |
Foreign exchange | -10,682 | -10,682 | |
General and administrative | 65,114 | 21,366 | 112,649 |
Geological, mineral, and prospect costs written off | 364,000 | 376,500 | |
Professional fees | 45,509 | 32,395 | 116,614 |
Promotion | 76,201 | 42,131 | 118,332 |
Loss and comprehensive loss | ($679,789) | ($134,757) | ($891,925) |
Basic and diluted loss per common share | ($0.01) | $0 | |
Weighted average number of common shares outstanding | 61,998,356 | 60,917,486 |
STATEMENT_OF_CASH_FLOWS
STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | 78 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | ($679,789) | ($134,757) | ($891,925) |
Items not involving cash | |||
Geological, mineral, and prospect costs written off | 364,000 | 354,000 | |
Non-cash working capital item changes: | |||
Receivables | -6,885 | -10,228 | -17,113 |
Prepaid expenses | 19,393 | -19,393 | |
Accounts payables and accrued liabilities and due to related parties | 371,497 | 142,237 | 518,884 |
Net cash used in operating activities | 68,216 | -22,141 | -36,154 |
CASH FLOWS FROM INVESTING ACTIVITY | |||
Mineral exploration | -60,000 | -50,000 | |
Net cash used in investing activity | -60,000 | -50,000 | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Common stock issued | 29,200 | ||
Due to related parties | 22,600 | 67,100 | |
Net cash provided by financing activities | 22,600 | 96,300 | |
Change in cash for the year | 8,216 | 459 | 10,146 |
Cash, beginning of year | 1,930 | 1,471 | |
Cash, end of year | 10,146 | 1,930 | 10,146 |
Interest | |||
Income taxes |
STATEMENT_OF_STOCKHOLDERS_DEFI
STATEMENT OF STOCKHOLDERS' DEFICIT (USD $) | Total | Common Stock | Additional Paid-in-Capital | Deficit |
Balance, Amount at Feb. 08, 2007 | ||||
Balance, Number at Feb. 08, 2007 | ||||
Stockholders' Equity | ||||
Private placement, Number | 60,800,000 | |||
Private placement, Amount | 29,200 | 60,800 | -31,600 | |
Loss for the period | -9,059 | -9,059 | ||
Balance, Amount at Jul. 31, 2007 | 20,141 | 60,800 | -31,600 | -9,059 |
Balance, Number at Jul. 31, 2007 | 60,800,000 | |||
Stockholders' Equity | ||||
Loss for the period | -23,857 | -23,857 | ||
Balance, Amount at Jul. 31, 2008 | -3,716 | 60,800 | -31,600 | -32,916 |
Balance, Number at Jul. 31, 2008 | 60,800,000 | |||
Stockholders' Equity | ||||
Loss for the period | -11,552 | -11,552 | ||
Balance, Amount at Jul. 31, 2009 | -15,268 | 60,800 | -31,600 | -44,468 |
Balance, Number at Jul. 31, 2009 | 60,800,000 | |||
Stockholders' Equity | ||||
Loss for the period | -16,911 | -16,911 | ||
Balance, Amount at Jul. 31, 2010 | -32,179 | 60,800 | -31,600 | -61,379 |
Balance, Number at Jul. 31, 2010 | 60,800,000 | |||
Stockholders' Equity | ||||
Loss for the period | -16,000 | -16,000 | ||
Balance, Amount at Jul. 31, 2011 | -48,179 | 60,800 | -31,600 | -77,379 |
Balance, Number at Jul. 31, 2011 | 60,800,000 | |||
Stockholders' Equity | ||||
Stock issued for mineral property, Number | 1,000,000 | |||
Stock issued for mineral property, Amount | 20,000 | 1,000 | 19,000 | |
Loss for the period | -134,757 | -134,757 | ||
Balance, Amount at Jul. 31, 2012 | -162,936 | 61,800 | -12,600 | -212,136 |
Balance, Number at Jul. 31, 2012 | 61,800,000 | |||
Stockholders' Equity | ||||
Stock issued for mineral property, Number | 1,600,000 | |||
Stock issued for mineral property, Amount | 284,000 | 1,600 | 282,400 | |
Loss for the period | -679,789 | -679,789 | ||
Balance, Amount at Jul. 31, 2013 | ($558,725) | $63,400 | $269,800 | ($891,925) |
Balance, Number at Jul. 31, 2013 | 63,400,000 |
NATURE_AND_CONTINUANCE_OF_OPER
NATURE AND CONTINUANCE OF OPERATIONS | 12 Months Ended |
Jul. 31, 2013 | |
Nature and Continuance of Operations [Abstract] | |
NATURE AND CONTINUANCE OF OPERATIONS | 1 |
NATURE AND CONTINUANCE OF OPERATIONS | |
Atlantic Resources Inc. was incorporated in the State of Nevada on February 9, 2007 and is in the exploration stage. On March 29, 2012, Atlantic Resources Inc. merged with and into our wholly-owned subsidiary Patriot Minefinders Inc. (the “Company”), a Nevada corporation, to effect a name change from Atlantic Resources Inc. to Patriot Minefinders Inc. The Company was formed solely for the change of name. The Company acquired a mineral property claim located in the Province of British Columbia, Canada, but allowed the claim to lapse on October 6, 2010. | |
The Company is in the early stages of exploration and as is common with any exploration company, it raises financing for its exploration and acquisition activities. These financial statements have been prepared on a going concern basis, which presumes that the Company will continue operation for the foreseeable future and will be able to realize assets and discharge liabilities in the normal course of business. The Company has incurred a loss of $679,789 for the year ended July 31, 2013 and has accumulated a deficit during the exploration stage of $891,925. This raises substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan, which is typical for junior exploration companies. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. | |
Management of the Company (“Management”) is of the opinion that sufficient financing will be obtained from external financing and further share issuances to meet the Company’s obligations. At July 31, 2013, the Company has working capital deficiency of $558,725, which would not be sufficient to fund the current level of operations. |
BASIS_OF_PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Jul. 31, 2013 | |
Basis of Preparation [Abstract] | |
BASIS OF PREPARATION | 2 |
BASIS OF PREPARATION | |
Generally accepted accounting principles | |
These financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America (“US GAAP”) for financial information with the instructions to Form 10-K and Regulation S-K. Results are not necessarily indicative of results which may be achieved in the future. | |
Use of Estimates | |
The preparation of these financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant areas requiring the use of estimates include the carrying value and recoverability of mineral properties and the recognition of deferred tax assets based on the change in unrecognized deductible temporary tax differences. Actual results could differ from those estimates, and would impact future results of operations and cash flows. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jul. 31, 2013 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 3 |
SIGNIFICANT ACCOUNTING POLICIES | |
Receivables | |
No allowance for doubtful accounts has been provided. Management has evaluated all receivables and believes they are collectible. | |
Mineral property | |
The costs of acquiring mineral rights are capitalized at the date of acquisition. After acquisition, various factors can affect the recoverability of the capitalized costs. If, after review, management concludes that the carrying amount of a mineral property is impaired, it will be written down to estimated fair value. Exploration costs incurred on mineral properties are expensed as incurred. Development costs incurred on proven and probable reserves will be capitalized. Upon commencement of production, capitalized costs will be amortized using the unit-of-production method over the estimated life of the ore body based on proven and probable reserves (which exclude non-recoverable reserves and anticipated processing losses). When the Company receives an option payment related to a property, the proceeds of the payment are applied to reduce the carrying value of the exploration asset. | |
Long-lived assets | |
Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted net cash flows related to the long-lived assets. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | |
Asset retirement obligations | |
The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and/or normal use of the long-lived assets. The Company also records a corresponding asset which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). | |
Loss per share | |
Basic loss per common share is computed using the weighted average number of common shares outstanding during the year. To calculate diluted loss per share, the Company uses the treasury stock method and the if converted method. | |
Financial instruments | |
The Company’s financial instruments consist of cash, receivables, accounts payable and accrued liabilities, and due to related parties. It is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from its financial instruments. The fair values of these financial instruments approximate their carrying values unless otherwise noted. | |
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 rate 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. | |
The following indicates the fair value hierarchy of the valuation techniques the Company utilizes to determine the fair value of financial assets that are measured at fair value on a recurring basis. | |
Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities; | |
Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and | |
Level 3 – Inputs that are not based on observable market data. | |
Financial instruments, including due from related parties, and accounts payable and accrued liability are classified as other financial liabilities and are carried at cost, which management believes approximates fair value due to the short term nature of these instruments. | |
Concentration of credit risk | |
The financial instrument which potentially subjects the Company to concentration of credit risk is cash. The Company maintains cash in bank accounts that, at times, may exceed federally insured limits. As of July 31, 2013 and 2012, the Company has not exceeded the federally insured limit. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. | |
Stock-based compensation | |
The Company accounts for share-based compensation under the provisions of ASC 718, “Compensation-Stock Compensation”. Under the fair value recognition provisions, stock-based compensation expense is measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measured. Grant date for all stock-based awards to employees and directors and is recognized as an expense over the requisite service period, which is generally the vesting period. The Black-Scholes option valuation model is used to calculate fair value. | |
The Company accounts for stock compensation arrangements with non-employees in accordance with ASC 718 which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of stock- based compensation is subject to periodic adjustment as the underlying equity instruments vest. Non-employee stock-based compensation charges are amortized over the vesting period on a straight-line basis. For stock options granted to employees, directors, and non-employees, the fair value of the stock options is estimated using a Black-Scholes valuation model. | |
Income taxes | |
The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the asset and liability method the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion or all of the deferred tax asset will not be recognized. | |
Foreign exchange | |
The Company’s functional currency is the U.S. dollar. Any monetary assets and liabilities that are in a currency other than the U.S. dollar are translated at the rate prevailing at year end. Revenue and expenses in a foreign currency are translated at rates that approximate those in effect at the time of translation. Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations. | |
Exploration Stage Company | |
As an exploration stage Company, it is a type of development stage company as defined in Financial Accounting Standard Board ("FASB") Accounting Standards Codification (“ASC”) 205-915. Accordingly, the Company devotes substantially all of its present efforts to establish its business and its planned principal operations have not commenced. All losses accumulated since inception have been considered as part of the Company’s development stage activities. | |
Recent accounting pronouncements | |
Reporting of Amounts reclassified out of Accumulated Other Comprehensive Income | |
In February 2013, ASC guidance was issued related to items reclassified from Accumulated Other Comprehensive Income. The new standard requires either in a single note or parenthetically on the face of the financial statements:(i) the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and (ii) the income statement line items affected by the reclassification. The update is effective for the Company’s fiscal year beginning January 1, 2013 with early adoption permitted. The Company does not expect the updated guidance to have a significant impact on the consolidated financial position, results of operations or cash flows. | |
Disclosures about Offsetting Assets and Liabilities | |
In November 2011, ASC guidance was issued related to disclosures about offsetting assets and liabilities. The new standard requires disclosures to allow investors to better compare financial statements prepared under U.S. GAAP with financial statements prepared under IFRS. The update is effective for the Company’s fiscal year beginning January 1, 2013, and interim periods within those annual periods. Retrospective application is required. | |
In January 2013, ASC guidance was issued to clarify that the disclosure requirements are limited to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (i) offset in the financial statements or (ii) subject to an enforceable master netting arrangement or similar agreement. The Company does not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows. |
MINERAL_PROPERTY_OPTION
MINERAL PROPERTY OPTION | 12 Months Ended | |||
Jul. 31, 2013 | ||||
Mineral Property Option [Abstract] | ||||
MINERAL PROPERTY OPTION | 4 | |||
MINERAL PROPERTY OPTION | ||||
Title to mineral properties | ||||
Title to mineral properties involves certain inherent risks due to the difficulties of determining the validity of certain mineral titles as well as the potential for problems arising from the frequently ambiguous conveying history characteristic of many mineral properties. As at July 31, 2013, the Company does not hold titles to any mineral properties. | ||||
La Buena, Mexico | ||||
The Company entered in to an assignment agreement with Skanderbeg Capital Partners Inc. (“Skanderbeg”) whereby the Company can earn a 50% interest in the La Buena mineral claims located in Mexico. | ||||
Skanderbeg entered in to an option agreement with San Marco Resources Inc. (“San Marco”) dated February 28, 2012, wherein Skanderbeg had an option to acquire from San Marco a 50% interest in the La Buena mineral claims. Skanderbeg assigned its interest in the Option to the Company for $100,000, which consists of the costs paid by Skanderbeg to date to San Marco as part of the option agreement. | ||||
Under the option agreement the Company assumed all of Skanderbeg’s obligations and agreed to issue up to 2,500,000 (1,000,000 issued) restricted shares of common stock to San Marco, in periodic installments to December 31, 2014; make aggregate cash payments totaling $300,000 to San Marco, with the next payment of $100,000 due December 31, 2012, and then an additional $100,000 due on each of December 31, 2013 and 2014 respectively; and to incur aggregate exploration expenditures of $6,000,000, with $1,000,000 to be incurred by December 31, 2012, $500,000 to be incurred by December 31, 2013, and the balance of $4,500,000 to be incurred by December 31, 2014. | ||||
During the year ended July 31, 2013, the Company decided not to move forward with the La Buena project and issued 400,000 restricted common shares valued at $92,000 and paid $10,000 in lieu of any future obligations as stated above. | ||||
KM 66, Mexico | ||||
During the year ended July 31, 2013, the Company entered in to a definitive agreement (“Agreement”) with Bearing Resources Ltd. (“Bearing”) whereby the Company could earn a 75% interest in the KM 66 Property in Mexico. In order for the Company to earn its interest, the Company must pay $9,075,000 ($50,000 paid), complete $1,300,000 in exploration expenditures, issue 1,200,000 common shares (issued) of the Company, and pay the estimated land taxes over a four year period. | ||||
The Company must keep the property in good standing and complete a bankable feasibility study by the eighth anniversary of the Effective Date. Should the Company complete the above but not complete the bankable feasibility study, the Company will have earned a 65% interest in the KM 66 project. During the year ended July 31, 2013, the Company decided not to move forward with the KM 66 project. | ||||
Acquisition costs | KM 66 | La Buena | Total | |
Balance, July 31, 2011 | - | - | - | |
Shares issued | - | 20,000 | 20,000 | |
Balance, July 31, 2012 | - | 20,000 | 20,000 | |
Additions | ||||
Cash payments | 50,000 | 10,000 | 60,000 | |
Shares issued | 192,000 | 92,000 | 284,000 | |
Written-off | (242,000) | (122,000) | (364,000) | |
Ending balance, July 31, 2013 | - | - | - |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jul. 31, 2013 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 5 |
RELATED PARTY TRANSACTIONS | |
Key management personnel comprise of the Chief Executive Officer, Chief Financial Officer, and the Directors of the Company. The remuneration of the key management personnel is as follows: | |
a) | |
Consulting fees of $60,000 (2012 - $15,000) to a company with a common director of the Company, $700 (2012 - $Nil) to the former CEO of the Company, $20,000 (2012 - $Nil) to a company controlled by the current CEO, and $7,800 (2012 - $Nil) to a director of the Company. | |
As at July 31, 2013, included in due to related parties is $67,100 (2012 - $67,100) representing advances made by a former director. The advances are due on demand without interest. | |
As at July 31, 2013, including in due to related parties is $398,323 (2012 - $40,041) in accounts payable and accrued liabilities to current and former officers and companies controlled by directors and officers of the Company. Of this amount, $287,431 (2012 - $23,241) represents advances made by Skanderbeg, a company that advises the Company’s management and does promotional work for the Company. Skanderbeg has made payments on behalf of the Company until such time as the Company is able to complete a financing. | |
Rent included in general and administration of $11,476 (2012 - $2,585) and consulting fees of $26,391 (2012 - $7,870) to Skanderbeg. | |
In addition, the Company entered into an assignment agreement (Note 4) and bridge loan agreement (Note 6) in the year ended July 31, 2012. |
NOTE_PAYABLE
NOTE PAYABLE | 12 Months Ended |
Jul. 31, 2013 | |
Note Payable [Abstract] | |
NOTE PAYABLE | 6 |
NOTE PAYABLE | |
On March 19, 2012, the Company entered into a bridge loan agreement with Skanderbeg. Under the terms of the bridge loan agreement, Skanderbeg agreed to loan the Company up to $25,000 to facilitate the assignment to the Company of Skanderbeg’s interest in an option agreement related to the La Buena, Mexico project. Upon signing of the assignment agreement with Skanderbeg, the loan was forgiven and was applied against expenditures for which the funds lent were related to. |
CAPITAL_STOCK_AND_ADDITIONAL_P
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL | 12 Months Ended |
Jul. 31, 2013 | |
Capital Stock and Additional Paid-In-Capital [Abstract] | |
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL | 7 |
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL | |
During the year ended July 31, 2012, the board of directors authorized a 24-for-1 forward stock split. Prior to the approval of the forward split, the Company had authorized 70,000,000 common shares with the par value of $0.001 per common share. On the effective date of the forward split, the total authorized capital is 1,680,000,000 common shares with the par value of $0.001 per common share. | |
Subsequent to the forward stock split, the Company cancelled 52,000,000 restricted common shares. The effect of these transactions has been retroactively applied to the financial statements. | |
During the year ended July 31, 2013, the Company issued 1,200,000 restricted common shares with a value of $192,000 to Bearing as part of the KM 66 option agreement (Note 4). | |
During the year ended July 31, 2013, the Company issued 400,000 restricted common shares with a value of $92,000 to San Marco (Note 4). | |
During the year ended July 31, 2012, the Company issued 1,000,000 restricted common shares with a value of $20,000 to San Marco as part of the La Buena option agreement (Note 4). |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||
Jul. 31, 2013 | |||
Income taxes [Abstract] | |||
INCOME TAXES | 8 | ||
INCOME TAXES | |||
As of July 31, 2013, the Company had no accrued interest and penalties related to uncertain tax positions. The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rates of 34% to pre-tax income from continuing operations for the years ended July 31, 2013 and 2012 is noted below. As management cannot determine that is more likely than not that the Company will realize the benefit of the net deferred tax asset, a valuation allowance equal to the net deferred tax asset has been recorded. | |||
A reconciliation of income taxes (recovery) at statutory rates with the reported taxes is as follows: | |||
2013 | 2012 | ||
Loss before income taxes | $ | $ | |
-679,789 | -134,757 | ||
Expected income tax (recovery) at statutory tax rates | $ | $ | |
-231,000 | -46,000 | ||
Valuation allowance | 231,000 | 46,000 | |
Income tax recovery | $ | $ | |
- | - | ||
Significant components of deductible temporary differences, unused tax losses, and unused tax credits that have not been included on the balance sheet are as follows: | |||
2013 | 2012 | ||
Deferred tax assets: | |||
Net operating loss carry-forwards | 303,000 | 72,000 | |
Unrecognized deferred tax assets | $ | $ | |
303,000 | 72,000 | ||
The Company has approximately $892,000 in net operating losses which may be carried forward and applied against taxable income in future years. Net operating loss carry-forwards, if not utilized, start to expire in 2027. The benefits of these losses and other tax assets have not been recognized in these financial statements. | |||
Tax attributes are subject to review and potential adjustments by tax authorities. |
SUPPLEMENTAL_DISCLOSURE_WITH_R
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | 12 Months Ended |
Jul. 31, 2013 | |
Supplemental Disclosure with Respect to Cash Flows [Abstract] | |
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | 9 |
SUPPLEMENTAL DISCLSOURE WITH RESPECT TO CASH FLOWS | |
During the year ended July 31, 2013, the Company: | |
a) | |
issued 1,600,000 common shares with a fair value of $284,000 for two mineral property options. | |
During the year ended July 31, 2012, the Company: | |
a) | |
issued 1,000,000 common shares with a fair value of $20,000 for a mineral property option. |
SEGMENTD_INFORMATION
SEGMENTD INFORMATION | 12 Months Ended |
Jul. 31, 2013 | |
Segment Information [Abstract] | |
SEGMENTD INFORMATION | 10 |
SEGMENTED INFORMATION | |
The Company has one reportable segment, being the exploration and development of resource properties. All assets are held in Canada with the exception of mineral property assets in the prior year which are held in Mexico. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Jul. 31, 2013 | |
Significant Accounting Policies [Abstract] | |
Receivables | Receivables |
No allowance for doubtful accounts has been provided. Management has evaluated all receivables and believes they are collectible. | |
Mineral property | Mineral property |
The costs of acquiring mineral rights are capitalized at the date of acquisition. After acquisition, various factors can affect the recoverability of the capitalized costs. If, after review, management concludes that the carrying amount of a mineral property is impaired, it will be written down to estimated fair value. Exploration costs incurred on mineral properties are expensed as incurred. Development costs incurred on proven and probable reserves will be capitalized. Upon commencement of production, capitalized costs will be amortized using the unit-of-production method over the estimated life of the ore body based on proven and probable reserves (which exclude non-recoverable reserves and anticipated processing losses). When the Company receives an option payment related to a property, the proceeds of the payment are applied to reduce the carrying value of the exploration asset. | |
Long-lived assets | Long-lived assets |
Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted net cash flows related to the long-lived assets. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | |
Asset retirement obligations | Asset retirement obligations |
The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and/or normal use of the long-lived assets. The Company also records a corresponding asset which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). | |
Loss per share | Loss per share |
Basic loss per common share is computed using the weighted average number of common shares outstanding during the year. To calculate diluted loss per share, the Company uses the treasury stock method and the if converted method. | |
Financial instruments | Financial instruments |
The Company’s financial instruments consist of cash, receivables, accounts payable and accrued liabilities, and due to related parties. It is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from its financial instruments. The fair values of these financial instruments approximate their carrying values unless otherwise noted. | |
Fair value of financial assets and liabilities | 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 rate 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. | |
The following indicates the fair value hierarchy of the valuation techniques the Company utilizes to determine the fair value of financial assets that are measured at fair value on a recurring basis. | |
Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities; | |
Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and | |
Level 3 – Inputs that are not based on observable market data. | |
Financial instruments, including due from related parties, and accounts payable and accrued liability are classified as other financial liabilities and are carried at cost, which management believes approximates fair value due to the short term nature of these instruments. | |
Concentration of credit risk | Concentration of credit risk |
The financial instrument which potentially subjects the Company to concentration of credit risk is cash. The Company maintains cash in bank accounts that, at times, may exceed federally insured limits. As of July 31, 2013 and 2012, the Company has not exceeded the federally insured limit. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. | |
Stock-based compensation | Stock-based compensation |
The Company accounts for share-based compensation under the provisions of ASC 718, “Compensation-Stock Compensation”. Under the fair value recognition provisions, stock-based compensation expense is measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measured. Grant date for all stock-based awards to employees and directors and is recognized as an expense over the requisite service period, which is generally the vesting period. The Black-Scholes option valuation model is used to calculate fair value. | |
The Company accounts for stock compensation arrangements with non-employees in accordance with ASC 718 which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of stock- based compensation is subject to periodic adjustment as the underlying equity instruments vest. Non-employee stock-based compensation charges are amortized over the vesting period on a straight-line basis. For stock options granted to employees, directors, and non-employees, the fair value of the stock options is estimated using a Black-Scholes valuation model. | |
Income taxes | Income taxes |
The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the asset and liability method the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion or all of the deferred tax asset will not be recognized. | |
Foreign exchange | Foreign exchange |
The Company’s functional currency is the U.S. dollar. Any monetary assets and liabilities that are in a currency other than the U.S. dollar are translated at the rate prevailing at year end. Revenue and expenses in a foreign currency are translated at rates that approximate those in effect at the time of translation. Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations. | |
Exploration Stage Company | Exploration Stage Company |
As an exploration stage Company, it is a type of development stage company as defined in Financial Accounting Standard Board ("FASB") Accounting Standards Codification (“ASC”) 205-915. Accordingly, the Company devotes substantially all of its present efforts to establish its business and its planned principal operations have not commenced. All losses accumulated since inception have been considered as part of the Company’s development stage activities. | |
Recent accounting pronouncements | Recent accounting pronouncements |
Reporting of Amounts reclassified out of Accumulated Other Comprehensive Income | |
In February 2013, ASC guidance was issued related to items reclassified from Accumulated Other Comprehensive Income. The new standard requires either in a single note or parenthetically on the face of the financial statements:(i) the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and (ii) the income statement line items affected by the reclassification. The update is effective for the Company’s fiscal year beginning January 1, 2013 with early adoption permitted. The Company does not expect the updated guidance to have a significant impact on the consolidated financial position, results of operations or cash flows. | |
Disclosures about Offsetting Assets and Liabilities | |
In November 2011, ASC guidance was issued related to disclosures about offsetting assets and liabilities. The new standard requires disclosures to allow investors to better compare financial statements prepared under U.S. GAAP with financial statements prepared under IFRS. The update is effective for the Company’s fiscal year beginning January 1, 2013, and interim periods within those annual periods. Retrospective application is required. | |
In January 2013, ASC guidance was issued to clarify that the disclosure requirements are limited to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (i) offset in the financial statements or (ii) subject to an enforceable master netting arrangement or similar agreement. The Company does not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows. |
MINERAL_PROPERTY_OPTION_Tables
MINERAL PROPERTY OPTION (Tables) | 12 Months Ended | |||
Jul. 31, 2013 | ||||
Mineral Property Option [Abstract] | ||||
Acquisition costs | ||||
Acquisition costs | KM 66 | La Buena | Total | |
Balance, July 31, 2011 | - | - | - | |
Shares issued | - | 20,000 | 20,000 | |
Balance, July 31, 2012 | - | 20,000 | 20,000 | |
Additions | ||||
Cash payments | 50,000 | 10,000 | 60,000 | |
Shares issued | 192,000 | 92,000 | 284,000 | |
Written-off | (242,000) | (122,000) | (364,000) | |
Ending balance, July 31, 2013 | - | - | - |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||
Jul. 31, 2013 | |||
Income taxes [Abstract] | |||
Reconciliation of income taxes at statutory rates | A reconciliation of income taxes (recovery) at statutory rates with the reported taxes is as follows: | ||
2013 | 2012 | ||
Loss before income taxes | $ | $ | |
-679,789 | -134,757 | ||
Expected income tax (recovery) at statutory tax rates | $ | $ | |
-231,000 | -46,000 | ||
Valuation allowance | 231,000 | 46,000 | |
Income tax recovery | $ | $ | |
- | - | ||
Significant components of deductible temporary differences | Significant components of deductible temporary differences, unused tax losses, and unused tax credits that have not been included on the balance sheet are as follows: | ||
2013 | 2012 | ||
Deferred tax assets: | |||
Net operating loss carry-forwards | 303,000 | 72,000 | |
Unrecognized deferred tax assets | $ | $ | |
303,000 | 72,000 | ||
NATURE_AND_CONTINUANCE_OF_OPER1
NATURE AND CONTINUANCE OF OPERATIONS (Textual) (Details) (USD $) | 6 Months Ended | 12 Months Ended | 78 Months Ended | |||||
Jul. 31, 2007 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2010 | Jul. 31, 2009 | Jul. 31, 2008 | Jul. 31, 2013 | |
Nature and Continuance of Operations (Textual) [Abstract] | ||||||||
Loss for the period | $9,059 | $679,789 | $134,757 | $16,000 | $16,911 | $11,552 | $23,857 | $891,925 |
Deficit accumulated during exploration stage | 891,925 | 212,136 | 891,925 | |||||
Working capital deficiency | $558,725 | $558,725 |
MINERAL_PROPERTY_OPTION_Textua
MINERAL PROPERTY OPTION (Textual) (Details) (USD $) | 12 Months Ended | |||
Jul. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Mineral Property Option (Textual) [Abstract] | ||||
Interest in the La Buena mineral claims | 50.00% | |||
Minaral Property Option (Additional Textual) [Abstract] | ||||
Interest in KM 66 Property | 65.00% | |||
La Buena, Mexico [Member] | ||||
Mineral Property Option (Textual) [Abstract] | ||||
Interest in the La Buena mineral claims | 50.00% | |||
Interest in the Option consists of the costs paid by Skanderbeg | $100,000 | |||
Agreed to issue restricted shares of common stock to San Marco | 2,500,000 | |||
Issued restricted shares of common stock to San Marco | 1,000,000 | |||
Aggregate cash payments totaling | 300,000 | |||
Next payment due to San Marco | 100,000 | |||
Additional Due | 100,000 | 100,000 | ||
Aggregate exploration expenditures | 6,000,000 | 4,500,000 | 500,000 | 1,000,000 |
Issued restricted shares of common stock, La Buena project | 400,000 | |||
Payment lieu of future obligations | 10,000 | |||
Restricted common shares, Value | 92,000 | |||
KM 66, Mexico [Member] | ||||
Minaral Property Option (Additional Textual) [Abstract] | ||||
Interest in KM 66 Property | 75.00% | |||
Definitive agreement payment | 9,075,000 | |||
Definitive agreement amount paid | 50,000 | |||
Exploration Expenditures | $1,300,000 | |||
Common stock shares issued | 1,200,000 |
MINERAL_PROPERTY_OPTION_Acquis
MINERAL PROPERTY OPTION (Acquisition costs) (Details) (USD $) | 12 Months Ended | 78 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2013 | |
Business Acquisition, Cost of Acquired Entity [Abstract] | |||
Balance, Begining | $20,000 | ||
Additions | |||
Cash payment | 60,000 | ||
Shares issued | 284,000 | 20,000 | |
Write-down of mineral properties | -364,000 | -354,000 | |
Balance, Ending | 20,000 | ||
La Buena, Mexico [Member] | |||
Business Acquisition, Cost of Acquired Entity [Abstract] | |||
Balance, Begining | 20,000 | ||
Additions | |||
Cash payment | 10,000 | ||
Shares issued | 92,000 | 20,000 | |
Write-down of mineral properties | -122,000 | ||
Balance, Ending | 20,000 | ||
KM 66, Mexico [Member] | |||
Business Acquisition, Cost of Acquired Entity [Abstract] | |||
Balance, Begining | |||
Additions | |||
Cash payment | 50,000 | ||
Shares issued | 192,000 | ||
Write-down of mineral properties | -242,000 | ||
Balance, Ending |
RELATED_PARTY_TRANSACTIONS_Tex
RELATED PARTY TRANSACTIONS (Textual) (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | |
Common director [Member] | ||
Related Party Transactions (Textual) [Abstract] | ||
Consulting fees | $60,000 | $15,000 |
Former CEO [Member] | ||
Related Party Transactions (Textual) [Abstract] | ||
Consulting fees | 700 | |
Current CEO [Member] | ||
Related Party Transactions (Textual) [Abstract] | ||
Consulting fees | 20,000 | |
Director [Member] | ||
Related Party Transactions (Textual) [Abstract] | ||
Consulting fees | 7,800 | |
Skanderbeg [Member] | ||
Related Party Transactions (Textual) [Abstract] | ||
Due to related parties | 287,431 | 23,241 |
Consulting fees | 26,391 | 7,870 |
Rent | 11,476 | 2,585 |
Current and former officers & directors | ||
Related Party Transactions (Textual) [Abstract] | ||
Due to related parties | 398,323 | 40,041 |
Former director [Member] | ||
Related Party Transactions (Textual) [Abstract] | ||
Due to related parties | $67,100 | $67,100 |
NOTE_PAYABLE_Textual_Details
NOTE PAYABLE (Textual) (Details) (USD $) | Mar. 19, 2012 |
Note Payable (Textual) [Abstract] | |
Bridge loan agreement with Skanderbeg | $25,000 |
CAPITAL_STOCK_AND_ADDITIONAL_P1
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL (Textual) (Details) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2012 | Jul. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2012 |
Prior Forward Split [Member] | After Forward Split [Member] | KM 66, Mexico [Member] | San marco [Member] | La Buena, Mexico [Member] | |||
Capital Stock and Additional Paid-In-Capital (Textual) [Abstract] | |||||||
Authorized common shares | 70,000,000 | 1,680,000,000 | |||||
Common Stock, Par Value | $0.00 | $0.00 | $0.00 | $0.00 | |||
Cancelled restricted common shares | 52,000,000 | ||||||
Forward stock split, description | The board of directors authorized a 24-for-1 forward stock split. | ||||||
Issued restricted shares of common stock | 1,600,000 | 1,000,000 | 1,200,000 | 400,000 | 1,000,000 | ||
Restricted Common shares, fair value | $284,000 | $20,000 | $192,000 | $92,000 | $20,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | |
Reconciliation of income taxes at statutory rates | ||
Loss before income taxes | ($679,789) | ($134,757) |
Expected income tax (recovery) at statutory tax rates | -231,000 | -46,000 |
Valuation allowance | 231,000 | 46,000 |
Income tax recovery | ||
Deferred tax assets: | ||
Net operating loss carry-forwards | 303,000 | 72,000 |
Unrecognized deferred tax assets | 303,000 | 72,000 |
Income Taxes (Textual) [Abstract] | ||
U.S. federal and state income tax rates | 34.00% | 34.00% |
Net operating losses, carried forward | $892,000 | |
Operating loss carryforwards, expiration details | Net operating loss carry-forwards, if not utilized, start to expire in 2027. |
SUPPLEMENTAL_DISCLOSURE_WITH_R1
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Textual) (Details) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Supplemental Disclosure with Respect to Cash Flows [Abstract] | ||
Issued restricted shares of common stock | 1,600,000 | 1,000,000 |
Restricted Common shares, fair value | $284,000 | $20,000 |
SEGMENTD_INFORMATION_Textual_D
SEGMENTD INFORMATION (Textual) (Details) | 12 Months Ended |
Jul. 31, 2013 | |
Segments | |
Segment Information (Textual) [Abstract] | |
Number of reportable segments | 2 |