Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Oct. 28, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Patriot Minefinders Inc. | ' |
Entity Central Index Key | '0001424864 | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Jul-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--07-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | ' | $0 |
Entity Common Stock, Shares Outstanding | ' | 63,400,000 |
Document Fiscal Period Focus | 'FY | ' |
Document Fiscal Year Focus | '2014 | ' |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Current | ' | ' |
Cash | $72 | $10,146 |
Receivables | 766 | 17,113 |
Prepaid expenses | 8,314 | ' |
Total Current Assets | 9,152 | 27,259 |
Assets | 9,152 | 27,259 |
Current | ' | ' |
Accounts payable and accrued liabilities | 658,507 | 518,884 |
Due to related parties | 67,100 | 67,100 |
Total Current Liabilities | 725,607 | 585,984 |
Stockholders' deficit | ' | ' |
Capital stock, $0.001 par value, 1,680,000,000 shares authorized; 63,400,000 shares issued and outstanding | 63,400 | 63,400 |
Additional paid-in-capital | 269,800 | 269,800 |
Deficit accumulated during the exploration stage | -1,049,655 | -891,925 |
Total stockholders' deficit | -716,455 | -558,725 |
Total liabilities and stockholders' deficit | $9,152 | $27,259 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Balance Sheets | ' | ' |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 1,680,000,000 | 1,680,000,000 |
Common Stock, Shares Issued | 63,400,000 | 63,400,000 |
Common Stock, Shares Outstanding | 63,400,000 | 63,400,000 |
STATEMENT_OF_OPERATIONS_AND_CO
STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
EXPENSES | ' | ' |
Bad debt expense | $50,038 | ' |
Consulting | 51,284 | 116,273 |
Filing and regulatory | 9,557 | 23,374 |
Foreign exchange | -28,780 | -10,682 |
Gain on extinguishment of debt | -7,771 | ' |
General and administrative | 28,113 | 65,114 |
Geological, mineral, and prospect costs written off | ' | 364,000 |
Professional fees | 54,650 | 45,509 |
Promotion and shareholder communication | 639 | 76,201 |
Loss and comprehensive loss | ($157,730) | ($679,789) |
Basic and diluted loss per common share | $0 | ($0.01) |
Weighted average number of common shares outstanding | 63,400,000 | 61,998,356 |
STATEMENT_OF_CASH_FLOWS
STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Loss for the year | ($157,730) | ($679,789) |
Items not involving cash | ' | ' |
Bad debt expense | 50,038 | ' |
Geological, mineral, and prospect costs written off | ' | 364,000 |
Unrealized foreign exchange | -28,780 | ' |
Non-cash working capital item changes: | ' | ' |
Receivables | 16,347 | -6,885 |
Prepayments | -8,314 | 19,393 |
Accounts payables and accrued liabilities | 118,365 | 371,497 |
Net cash used in operating activities | -10,074 | 68,216 |
CASH FLOWS FROM INVESTING ACTIVITY | ' | ' |
Mineral exploration | ' | -60,000 |
Net cash provided by investing activities | ' | -60,000 |
Change in cash for the period | -10,074 | 8,216 |
Cash, beginning of period | 10,146 | 1,930 |
Cash, end of period | 72 | 10,146 |
Interest | ' | ' |
Income taxes | ' | ' |
STATEMENT_OF_STOCKHOLDERS_DEFI
STATEMENT OF STOCKHOLDERS' DEFICIT (USD $) | Common Stock | Additional Paid-In Capital | Deficit | Total |
Beginning Balance at Jul. 31, 2012 | $61,800 | ($12,600) | ($212,136) | ($162,936) |
Beginning Balance, in shares at Jul. 31, 2012 | 61,800,000 | ' | ' | ' |
Stock issued for mineral property | 1,600 | 282,400 | ' | 284,000 |
Stock issued for mineral property, in shares | 600,000 | ' | ' | ' |
Loss for the period | ' | ' | -679,789 | -679,789 |
Ending Balance at Jul. 31, 2013 | 63,400 | 269,800 | -891,925 | -558,725 |
Ending Balance, in shares at Jul. 31, 2013 | 63,400,000 | ' | ' | ' |
Loss for the period | ' | ' | -157,730 | -157,730 |
Ending Balance at Jul. 31, 2014 | $63,400 | $269,800 | ($1,049,655) | ($716,455) |
Ending Balance, in shares at Jul. 31, 2014 | 63,400,000 | ' | ' | ' |
NATURE_AND_CONTINUANCE_OF_OPER
NATURE AND CONTINUANCE OF OPERATIONS | 12 Months Ended |
Jul. 31, 2014 | |
Nature And Continuance Of Operations | ' |
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 $157,730 for the year ended July 31, 2014 and has accumulated a deficit during the exploration stage of $1,049,655. 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, 2014, the Company has working capital deficiency of $716,455, which would not be sufficient to fund the current level of operations. |
BASIS_OF_PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Jul. 31, 2014 | |
Basis Of Preparation | ' |
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, 2014 | |
Accounting Policies [Abstract] | ' |
SIGNIFICANT ACCOUNTING POLICIES | ' |
3. SIGNIFICANT ACCOUNTING POLICIES | |
Receivables | |
The Company reviews all receivables that exceed terms and establishes an allowance for doubtful accounts based on management's assessment of the collectability of trade and other receivables. | |
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 liabilities 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, 2014 and 2013, 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. | |
Recent accounting pronouncements | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. This ASU does the following, among other things: a) eliminates the requirement to present inception-to-date information on the statements of income, cash flows, and shareholders' equity, b) eliminates the need to label the financial statements as those of a development stage entity, c) eliminates the need to disclose a description of the development stage activities in which the entity is engaged, and d) amends FASB ASC 275, “Risks and Uncertainties”, to clarify that information on risks and uncertainties for entities that have not commenced planned principal operations is required. The amendments in ASU No. 2014-10 related to the elimination of Topic 915 disclosures and the additional disclosure for Topic 275 are effective for public companies for annual and interim reporting periods beginning after December 15, 2014, with early adoption permitted. The Company has evaluated this ASU and early adopted beginning with the year ended July 31, 2014. | |
In August 2014, FASB also issued 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”. This ASU provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about [the] entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of adoption of this standard. |
MINERAL_PROPERTY_OPTION
MINERAL PROPERTY OPTION | 12 Months Ended | |||
Jul. 31, 2014 | ||||
Extractive Industries [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, 2014, the Company does not hold titles to any mineral properties. | ||||
La Buena, Mexico | ||||
The Company entered into 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. | ||||
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. | ||||
During the year ended July 31, 2014, the Company decided not to move forward with the KM 66 project. | ||||
Acquisition costs | KM 66 | La Buena | Total | |
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) | |
Balance, July 31, 2013 and 2014 | - | - | - | |
LONGTERM_RECEIVABLE_AND_CONTIN
LONG-TERM RECEIVABLE AND CONTINGENCY | 12 Months Ended |
Jul. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
LONG-TERM RECEIVABLE AND CONTINGENCY | ' |
5. LONG-TERM RECEIVABLE AND CONTINGENCY | |
During the year ended July 31, 2014, the Company entered in to a binding letter of intent (“LOI”) with Wundr Software Inc. (“Wundr”). Under the terms of the LOI, the Company would acquire 100% of the issued and outstanding common shares of Wundr. Due to unforeseen circumstances, the Company did not go through with the LOI, which the Company announced was expired on January 10, 2014. | |
During the year ended July 31, 2014, the Company advanced $50,038 to Wundr as a loan, due on demand without interest. Management has assessed the collectability of the loan and recorded an allowance for doubtful accounts of $50,038 for the year ended July 31, 2014. | |
On September 17, 2014, the Company learned that it was the subject, along with a number of additional defendants, of a notice of civil claim (the “Claim”) filed in the Supreme Court of British Columbia by Wundr, under which Wundr is seeking general damages from the Company as well as damages for conspiracy to cause economic harm. None of the allegations contained in the Claim have been proven in court. Management has determined that the probability of the Claim resulting in an unfavourable outcome and financial loss to the Company is unlikely. |
SHARE_EXCHANGE_AGREEMENT
SHARE EXCHANGE AGREEMENT | 12 Months Ended |
Jul. 31, 2014 | |
Notes to Financial Statements | ' |
SHARE EXCHANGE AGREEMENT | ' |
6. SHARE EXCHANGE AGREEMENT | |
On May 23, 2014, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with Juliet Press Inc., a private British Columbia, Canada corporation (“Juliet”), and the stockholders of Juliet (the “Juliet stockholders”), to acquire 100% of the issued and outstanding common stock of Juliet (the “Juliet Stock”). Pursuant to the Share Exchange Agreement, the Company was expected to issue 14,000,000 shares of common stock to Juliet stockholders in consideration for Juliet Shares, resulting in Juliet becoming a wholly owned subsidiary of the Company. | |
Subsequent to July 31, 2014, on September 25, 2014, the Company, Juliet and Juliet stockholders mutually agreed in writing to terminate the Share Exchange Agreement. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jul. 31, 2014 | |
Related Party Transactions | ' |
RELATED PARTY TRANSACTIONS | ' |
7. 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 $33,636 (2013 - $60,000) to a company with a common former director of the Company, $Nil (2013 - $700) to the former CEO of the Company, $8,629 (2013 - $20,000) to a company controlled by the former CEO, and $Nil (2013 - $7,800) to the CFO of the Company. | |
As at July 31, 2014, the Company has recorded loans from related parties of $67,100 (2013 - $67,100) representing advances made by a two former directors and officers. The advances are due on demand without interest. | |
As at July 31, 2014, including in due to related parties is $545,494 (2013 - $398,323) in accounts payable and accrued liabilities to current and former officers and companies controlled by directors and officers of the Company. Of this amount, $325,643 (2013 - $287,431) 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. | |
Included in general and administration expenses for the year ended July 31, 2014 is rent of $1,725 (2013 - $11,476) and consulting fees of $966 (2013 - $26,391) paid to Skanderbeg. |
CAPITAL_STOCK_AND_ADDITIONAL_P
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL | 12 Months Ended |
Jul. 31, 2014 | |
Capital Stock And Additional Paid-in-capital | ' |
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL | ' |
8. CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL | |
There were no transactions during the year ended July 31, 2014. | |
During the year ended July 31, 2013, the Company issued 1,600,000 restricted common shares with a value of $284,000 to two companies the Company entered in to mineral property option agreements with. During the year ended July 31, 2013, both agreements were dropped and the value of the restricted common shares was written off to the statement of operations and comprehensive loss. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||
Jul. 31, 2014 | |||
Income Tax Disclosure [Abstract] | ' | ||
INCOME TAXES | ' | ||
9. INCOME TAXES | |||
As of July 31, 2014, 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, 2014 and 2013 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: | |||
2014 | 2013 | ||
Loss before income taxes | ($157,730) | ($679,789) | |
Expected income tax (recovery) at statutory tax rates | ($54,000) | ($231,000) | |
Permanent differences | -2,000 | - | |
Valuation allowance | 56,000 | 231,000 | |
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: | |||
2014 | 2013 | ||
Deferred tax assets: | |||
Net operating loss carry-forwards | 359,000 | 303,000 | |
Unrecognized deferred tax assets | $359,000 | $303,000 | |
The Company has approximately $1,057,000 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, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ' |
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | ' |
10. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | |
There were no significant non-cash transactions during the year ended July 31, 2014. | |
During the year ended July 31, 2013, the Company issued 1,600,000 common shares with a fair value of $284,000 for two mineral property options. |
SEGMENTED_INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Jul. 31, 2014 | |
Segmented Information | ' |
SEGMENTED INFORMATION | ' |
11. SEGMENTED INFORMATION | |
The Company has one reportable segment, being the search for a suitable business opportunity. |
BASIS_OF_PREPARATION_Policies
BASIS OF PREPARATION (Policies) | 12 Months Ended |
Jul. 31, 2014 | |
Basis Of Preparation Policies | ' |
Generally accepted accounting principles | ' |
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 | ' |
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_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jul. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Receivables | ' |
Receivables | |
The Company reviews all receivables that exceed terms and establishes an allowance for doubtful accounts based on management's assessment of the collectability of trade and other receivables. | |
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 liabilities 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, 2014 and 2013, 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. | |
Recent accounting pronouncements | ' |
Recent accounting pronouncements | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. This ASU does the following, among other things: a) eliminates the requirement to present inception-to-date information on the statements of income, cash flows, and shareholders' equity, b) eliminates the need to label the financial statements as those of a development stage entity, c) eliminates the need to disclose a description of the development stage activities in which the entity is engaged, and d) amends FASB ASC 275, “Risks and Uncertainties”, to clarify that information on risks and uncertainties for entities that have not commenced planned principal operations is required. The amendments in ASU No. 2014-10 related to the elimination of Topic 915 disclosures and the additional disclosure for Topic 275 are effective for public companies for annual and interim reporting periods beginning after December 15, 2014, with early adoption permitted. The Company has evaluated this ASU and early adopted beginning with the year ended July 31, 2014. | |
In August 2014, FASB also issued 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”. This ASU provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about [the] entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of adoption of this standard. |
MINERAL_PROPERTY_OPTION_Tables
MINERAL PROPERTY OPTION (Tables) | 12 Months Ended | |||
Jul. 31, 2014 | ||||
Extractive Industries [Abstract] | ' | |||
Schedule of Mineral Property | ' | |||
Acquisition costs | KM 66 | La Buena | Total | |
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) | |
Balance, July 31, 2013 and 2014 | - | - | - |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||
Jul. 31, 2014 | |||
Income Tax Disclosure [Abstract] | ' | ||
Schedule of Income taxes statutory rates | ' | ||
2014 | 2013 | ||
Loss before income taxes | ($157,730) | ($679,789) | |
Expected income tax (recovery) at statutory tax rates | ($54,000) | ($231,000) | |
Permanent differences | -2,000 | - | |
Valuation allowance | 56,000 | 231,000 | |
Income tax recovery | $- | $- | |
Schedule of Deferred Tax Assets | ' | ||
2014 | 2013 | ||
Deferred tax assets: | |||
Net operating loss carry-forwards | 359,000 | 303,000 | |
Unrecognized deferred tax assets | $359,000 | $303,000 |
NATURE_AND_CONTINUANCE_OF_OPER1
NATURE AND CONTINUANCE OF OPERATIONS (Details Narrative) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Nature and Continuance of Operations (Textual) [Abstract] | ' | ' |
Loss for the period | $157,730 | $679,789 |
Deficit accumulated during exploration stage | 1,049,655 | 891,925 |
Working capital deficiency | $716,455 | ' |
MINERAL_PROPERTY_OPTION_Detail
MINERAL PROPERTY OPTION (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Business Acquisition [Line Items] | ' | ' |
Balance, Begining | ' | $20,000 |
Additions | ' | ' |
Cash payment | ' | 60,000 |
Shares issued | ' | 284,000 |
Write-down of mineral properties | ' | -364,000 |
Balance, Ending | ' | ' |
La Buena [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Balance, Begining | ' | 20,000 |
Additions | ' | ' |
Cash payment | ' | 10,000 |
Shares issued | ' | 92,000 |
Write-down of mineral properties | ' | -122,000 |
Balance, Ending | ' | ' |
KM 66 [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Balance, Begining | ' | ' |
Additions | ' | ' |
Cash payment | ' | 50,000 |
Shares issued | ' | 192,000 |
Write-down of mineral properties | ' | -242,000 |
Balance, Ending | ' | ' |
MINERAL_PROPERTY_OPTION_Detail1
MINERAL PROPERTY OPTION (Details Narrative) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Restricted Common Stock | 63,400,000 | 63,400,000 |
Restricted Common Stock value | $63,400 | $63,400 |
La Buena [Member] | ' | ' |
Restricted Common Stock | ' | 400,000 |
Restricted Common Stock value | ' | 92,000 |
Payment Made in lieu of any future obligations | ' | $10,000 |
LONGTERM_RECEIVABLE_AND_CONTIN1
LONG-TERM RECEIVABLE AND CONTINGENCY (Details Narrative) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Bad debt expense | $50,038 | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Formar Ceo [Member] | ' | ' |
Related Party Transactions (Textual) [Abstract] | ' | ' |
Consulting fees | $0 | $700 |
Chief Executive Officer [Member] | ' | ' |
Related Party Transactions (Textual) [Abstract] | ' | ' |
Consulting fees | 8,629 | 20,000 |
Director [Member] | ' | ' |
Related Party Transactions (Textual) [Abstract] | ' | ' |
Consulting fees | 0 | 7,800 |
Skanderbeg [Member] | ' | ' |
Related Party Transactions (Textual) [Abstract] | ' | ' |
Due to related parties | 325,643 | 287,431 |
Consulting fees | 966 | 26,391 |
Rent | 1,725 | 11,476 |
Common Director [Member] | ' | ' |
Related Party Transactions (Textual) [Abstract] | ' | ' |
Consulting fees | 33,636 | 60,000 |
Former Director [Member] | ' | ' |
Related Party Transactions (Textual) [Abstract] | ' | ' |
Due to related parties | 67,100 | 67,100 |
Management [Member] | ' | ' |
Related Party Transactions (Textual) [Abstract] | ' | ' |
Due to related parties | $545,494 | $398,323 |
CAPITAL_STOCK_AND_ADDITIONAL_P1
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL (Details Narrative) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Capital Stock And Additional Paid-in-capital Details Narrative | ' | ' |
Restricted shares of common stock issues, in shares | ' | 1,600,000 |
Restricted shares of common stock issues | ' | $284,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Loss before income taxes | ($157,730) | ($679,789) |
Expected income tax (recovery) at statutory tax rates | -54,000 | -231,000 |
Permanent differences | -2,000 | ' |
Valuation allowance | 56,000 | 231,000 |
Income tax recovery | ' | ' |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Net operating loss carry-forwards | $359,000 | $303,000 |
Unrecognized deferred tax assets | $359,000 | $303,000 |
INCOME_TAXES_Details_Narrative
INCOME TAXES (Details Narrative) (USD $) | 12 Months Ended |
Jul. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Operating Loss | $1,057,000 |
SUPPLEMENTAL_DISCLOSURE_WITH_R1
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Details Narrative) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Shares Issued | 63,400,000 | 63,400,000 |
Fair value of Shares Issued | $63,400 | $63,400 |
Mineral Property Options [Member] | ' | ' |
Shares Issued | ' | 1,600,000 |
Fair value of Shares Issued | ' | $284,000 |