Document and Entity Information
Document and Entity Information - CAD | 12 Months Ended | |
Jul. 31, 2016 | Oct. 27, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Rise Resources Inc. | |
Entity Central Index Key | 1,424,864 | |
Document Type | 10-K | |
Document Period End Date | Jul. 31, 2016 | |
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 | CAD 4,721,032 | |
Entity Common Stock, Shares Outstanding | 33,266,261 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,016 |
BALANCE SHEETS
BALANCE SHEETS - CAD | Jul. 31, 2016 | Jul. 31, 2015 |
Current | ||
Cash | CAD 139,021 | CAD 18,000 |
Receivables | 20,021 | 4,941 |
Prepaid expenses | 9,566 | |
Deferred financing costs | 51,948 | |
Total Current Assets | 168,608 | 74,889 |
Mineral property | 563,031 | 20,000 |
Assets | 731,639 | 94,889 |
Current | ||
Accounts payable and accrued liabilities | 183,996 | 181,784 |
Loan from related parties | 43,214 | 87,105 |
Total Current Liabilities | 227,210 | 268,889 |
Stockholders' deficit | ||
Capital stock, USD $0.001 par value, 400,000,000 shares authorized; 38,297,179 shares issued and outstanding | 32,867 | 38,298 |
Additional paid-in-capital | 2,475,194 | 1,157,868 |
Cumulative translation adjustment | (166,663) | (166,663) |
Deficit | (1,836,969) | (1,203,503) |
Total stockholders' deficit | 504,429 | (174,000) |
Total liabilities and stockholders' deficit | CAD 731,639 | CAD 94,889 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 31, 2016 | Jul. 31, 2015 |
Balance Sheets | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares Issued | 32,866,261 | 38,297,197 |
Common Stock, Shares Outstanding | 32,866,261 | 38,297,197 |
STATEMENT OF OPERATIONS AND COM
STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS - CAD | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
EXPENSES | ||
Bad debt expense | CAD 7,126 | CAD 6,748 |
Consulting | 102,420 | 77,476 |
Filing and regulatory | 30,927 | 26,722 |
Foreign exchange | 1,959 | (90,810) |
Gain on settlement of payables | (41,982) | (9,259) |
General and administrative | 20,839 | 41,049 |
Geological, mineral, and prospect costs written off | 4,801 | |
Professional fees | 107,197 | 73,036 |
Property investigation costs | 10,408 | |
Promotion and shareholder communication | 20,201 | 2,970 |
Salaries | 5,365 | |
Share-based payments | 369,006 | |
Loss and comprehensive loss | (633,466) | (132,733) |
Cumulative impact of foreign exchange | 117,502 | |
Comprehensive loss for the year | CAD (633,466) | CAD (250,235) |
Basic and diluted loss per common share | CAD (0.02) | CAD (0.01) |
Weighted average number of common shares outstanding | 31,556,200 | 15,506,582 |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS - CAD | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Loss for the year | CAD (633,466) | CAD (132,733) |
Items not involving cash | ||
Bad debt expense | 7,126 | 6,748 |
Gain on settlement of payables | (41,982) | (9,259) |
Share-based payments | 369,006 | |
Unrealized foreign exchange | 2,644 | 6,525 |
Non-cash working capital item changes: | ||
Receivables | (22,206) | (4,081) |
Prepayments | (9,566) | 8,836 |
Accounts payables and accrued liabilities and due to related parties | 52,145 | 114,259 |
Net cash used in operating activities | (276,299) | (9,705) |
CASH FLOWS FROM INVESTING ACTIVITY | ||
Loan receivable | (6,748) | |
Mineral property | (80,000) | (20,000) |
Net cash provided by investing activities | (80,000) | (26,748) |
CASH FLOWS FROM FINANCING ACTIVITY | ||
Private placement | 605,000 | 210,000 |
Warrants exercised | 1,925 | |
Share issuance costs | (83,105) | |
Loan repayments | (46,500) | |
Deferred financing costs | (38,124) | |
Net cash provided by financing activity | 477,320 | 171,876 |
Effect of foreign exchange on cash | (117,502) | |
Change in cash for the period | 121,021 | 17,921 |
Cash, beginning of period | 18,000 | 79 |
Cash, end of period | 139,021 | 18,000 |
Interest | ||
Income taxes |
STATEMENT OF STOCKHOLDERS' EQUI
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) - CAD | Common Stock | Additional Paid-In Capital | Cumulative Translation Adjustment | Deficit | Total |
Beginning Balance at Jul. 31, 2014 | CAD 793 | CAD 337,716 | CAD (49,161) | CAD (1,070,770) | CAD (781,422) |
Beginning Balance, in shares at Jul. 31, 2014 | 792,518 | ||||
Shares issued for cash | CAD 6,000 | 204,000 | 210,000 | ||
Shares issued for cash, in shares | 6,000,002 | ||||
Shares issued for debt | CAD 31,505 | 616,152 | 647,657 | ||
Shares issued for debt, in shares | 31,504,677 | ||||
Cumulative translation adjustments | (117,502) | (117,502) | |||
Share-based payments | |||||
Loss for the year | (132,733) | (132,733) | |||
Ending Balance at Jul. 31, 2015 | CAD 38,298 | 1,157,868 | (166,663) | (1,203,503) | (174,000) |
Ending Balance, in shares at Jul. 31, 2015 | 38,297,197 | ||||
Shares issued for cash | CAD 6,069 | 600,856 | 606,925 | ||
Shares issued for cash, in shares | 6,069,250 | ||||
Shares surrender and cancellation | CAD (13,000) | 13,000 | |||
Shares surrender and cancellation, in shares | (13,000,186) | ||||
Shares issued for mineral property | CAD 1,500 | 238,500 | 240,000 | ||
Shares issued for mineral property, in shares | 1,500,000 | ||||
Cumulative translation adjustments | |||||
Warrants issued for mineral property | 223,031 | 223,031 | |||
Share issuance costs | (127,067) | (127,067) | |||
Share-based payments | 369,006 | 369,006 | |||
Loss for the year | (633,466) | (633,466) | |||
Ending Balance at Jul. 31, 2016 | CAD 32,867 | CAD 2,475,194 | CAD (166,663) | CAD (1,836,969) | CAD 504,429 |
Ending Balance, in shares at Jul. 31, 2016 | 32,866,261 |
NATURE AND CONTINUANCE OF OPERA
NATURE AND CONTINUANCE OF OPERATIONS | 12 Months Ended |
Jul. 31, 2016 | |
Nature And Continuance Of Operations | |
NATURE AND CONTINUANCE OF OPERATIONS | 1. NATURE AND CONTINUANCE OF OPERATIONS Atlantic Resources Inc. (the “Company”) was incorporated in the State of Nevada on February 9, 2007 and is in the exploration stage. On January 14, 2015, the Company merged its wholly-owned subsidiary, Rise Resources Inc., a Nevada corporation, in and to the Company to effect a name change from Patriot Minefinders Inc. to Rise Resources Inc. Rise Resources Inc. was formed solely for the purpose of effecting the change of name. On February 16, 2015, the Company increased its authorized capital from 21,000,000 shares to 400,000,000 shares. On January 29, 2016, the Company completed an initial public offering in Canada and began trading on the Canadian Securities Exchange (“CSE”) on February 1, 2016. The Company is in the early stages of exploration and as is common with any exploration company, it raises financing for its acquisition activities. The accompanying financial statements have been prepared on the going concern basis, which presumes that the Company will continue operations 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 $633,466 for the year ended July 31, 2016 and has accumulated a deficit of $1,836,969. 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 a start-up company. 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 required from external financing and further share issuances to meet the Company’s obligations. At July 31, 2016, the Company had working capital deficiency of $58,602. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Jul. 31, 2016 | |
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. Change in Functional and Presentation Currency The Company’s expenses and overheads are now primarily being incurred in Canadian Dollars (“CAD”) and it is anticipated that cash flows will continue to be primarily in CAD. Accordingly, the Company determined that effective August 1, 2015, the functional currency of the Company would change from the United States Dollar (“USD”) to CAD. Effective August 1, 2015, the Company also changed its presentation currency from USD to CAD. As a result of changing the presentation currency, all the comparative assets and liabilities were translated using the closing rate at the balance sheet date, comparative equity were translated at the exchange rates at the dates of transaction and the statements of loss were translated at the average exchange rate for the period covered. All resulting change differences are recognized in the accumulated deficit in the balance sheets’ shareholders’ equity (deficiency) section. A change in presentation currency is accounted for as a change in accounting policy and is applied retrospectively, as if the new presentation currency had always been the presentation currency. Consequently, the comparatives for the year ended July 31, 2015 and as at July 31, 2015 have been restated to be presented in CAD. The exchange rates applied for translation purposes were as follows: Date or period Exchange rate As at July 31, 2015 1 CAD = 0.7703 USD For the year ended July 31, 2015 1 CAD = 0.8403 USD 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. Restatement Certain prior year balances within equity have been restated to comply with the Company’s accounting policies. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jul. 31, 2016 | |
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 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 disclosuresabout 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 loan 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, 2016 and 2015, 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 Canadian dollar. Any monetary assets and liabilities that are in a currency other than the Canadian 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 Canadian dollars are included in current results of operations. Recently adopted and recently issued accounting standards In August 2014, the FASB 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. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. This ASU eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent amounts in a classified balance sheet and replaces it with a noncurrent classification of deferred tax assets and liabilities. The ASU applies to all entities and is effective for annual periods beginning after December 15, 2017, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of adoption of this standard. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities”. This ASU amendment addresses aspects of recognition, measurement, presentation and disclosure of financial instruments. It affects investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value, and simplifies the impairment assessment of equity investments without a readily determinable fair value by requiring a qualitative assessment. The ASU applies to all entities and is effective for annual periods beginning after December 15, 2017, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of adoption of this standard. Other than the above, the Company has determined that other significant newly issued accounting pronouncements and are either not applicable to the Company’s business or that no material effect is expected on the financial statements as a result of future adoption. |
MINERAL PROPERTY OPTION
MINERAL PROPERTY OPTION | 12 Months Ended |
Jul. 31, 2016 | |
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, 2016, the Company does not hold titles to any mineral properties. Indata, British Columbia On May 18, 2015, the Company entered into an option agreement with Eastfield Resources Ltd., (“Eastfield”), pursuant to which Eastfield granted the Company the exclusive and irrevocable right to acquire up to a 75% interest in and to certain claims in the Indata property located in the Omineca Mining Division in British Columbia, Canada. In order to earn the initial 60% interest, the Company is required to pay Eastfield an aggregate of $350,000 ($50,000 paid to date; $30,000 paid in the current year) in cash and incur a minimum of $2,000,000 in aggregate exploration expenditures on the property by April 3, 2019. In order to earn the additional 15% interest, the Company is required to pay Eastfield $100,000 cash within 90 days of earning the 60% interest and incur a further $500,000 in aggregate annual exploration expenditures on the property until such time as the Company is able to complete a feasibility study on the property. As at July 31, 2016, the Company has incurred cumulative exploration expenditures of $4,035 on the Indata property. Klondike, British Columbia On May 26, 2016, the Company entered into an agreement with Klondike Gold Corp. (“Klondike”) regarding the purchase of a portfolio of seven gold and base metal properties in southeast British Columbia. Under the agreement, within 60 days of signing, the Company paid Klondike $50,000 in cash, issued 1,500,000 shares of the Company’s common stock valued at $240,000, and issued 1,500,000 warrants valued at $223,031 (discount rate – 0.49%, volatility – 200.64%, expected life – 2 years, dividend yield – 0%), exercisable at $0.227 per share until July 13, 2018. On the one year anniversary of the first closing, the Company will pay Klondike $150,000 in cash, issue 2,000,000 shares of the Company’s common stock, and issue 1,000,000 warrants. Klondike will retain a 2% net smelter return royalty (“NSR”) and the Company will have the right to purchase 50% of the NSR for $1,000,000 at any time after the first closing. Each of the warrants is exercisable for a period of two years into one share of the Company’s common stock at a price that is a 20% premium to the 10-day volume-weighted average price of the stock on the CSE immediately prior to the date of issuance. As at July 31, 2016, the Company has incurred cumulative exploration expenditures of $10,408 on the Klondike properties. |
CONTINGENCY
CONTINGENCY | 12 Months Ended |
Jul. 31, 2016 | |
Debt Disclosure [Abstract] | |
CONTINGENCY | 5. CONTINGENCY During the year ended July 31, 2014, the Company entered into 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 complete the transactions contemplated in the LOI, which the Company announced had expired on January 10, 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. |
BAD DEBT EXPENSE
BAD DEBT EXPENSE | 12 Months Ended |
Jul. 31, 2016 | |
Notes to Financial Statements | |
BAD DEBT EXPENSE | 6. BAD DEBT EXPENSE During the year ended July 31, 2016, the Company advanced to Skanderbeg Capital Partners Inc. a total of $7,126, which had been recorded in prepaid expenses to be applied to future rent expense (Note 7). As the Company moved its premises during the year ended July 31, 2016, management has assessed the recoverability of the amount and recorded an allowance for doubtful accounts of $7,126 for the year ended July 31, 2016. During the year ended July 31, 2015, the Company advanced $6,748 (US$6,106) to Juliet Press Inc. (“Juliet”) as a loan, due on demand without interest. In fiscal 2014, the Company had entered into a share exchange agreement with Juliet to acquire 100% of the issued and outstanding common stock of Juliet in exchange for 175,000 common shares of the Company. On September 25, 2014, the Company, Juliet and Juliet stockholders mutually agreed in writing to terminate the Share Exchange Agreement. Management has assessed the collectability of the loan and recorded an allowance for doubtful accounts of $6,748 for the year ended July 31, 2015. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jul. 31, 2016 | |
Related Party Transactions | |
RELATED PARTY TRANSACTIONS | 7. RELATED PARTY TRANSACTIONS Key management personnel consist 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) Salaries of $5,000 (2015 - $Nil) to the CEO of the Company. b) Consulting fees of $30,000 (2015 - $19,203) to the former CEO of the Company. c) Consulting fees of $18,000 (2015 - $Nil) to the CFO of the Company. d) Share-based payments of $246,004 (2015 - $Nil) to the former CEO, CFO, and a director of the Company. As at July 31, 2016, the Company has recorded loans from related parties of $43,214 (US$33,099) (2015 - $87,105 or US$67,100) representing advances made by a director and a former director and officer. The advances are due on demand without interest. During the year ended July 31, 2016, $51,132 (US$36,600) of these loans were assigned to a company controlled by a director of the Company and $46,500 (US$34,001) was repaid. As at July 31, 2016, included in due to related parties is $25,494 (2015 - $11,313) in accounts and advances payable and accrued liabilities to current and former officers and companies controlled by directors and officers of the Company. Of this amount, $nil (2015 - $604) represents advances made by Skanderbeg Capital Partners Inc. (“Skanderbeg”), a company that advises the Company’s management and does promotional work for the Company. Skanderbeg made payments on behalf of the Company until such time as the Company was able to complete a financing. Included in general and administration expenses for the period ended July 31, 2016 is rent of $7,128 (2015 - $5,042) paid to Skanderbeg. A total of $7,126 advanced to Skanderbeg for future rent expense was assessed as non-recoverable during the year ended July 31, 2016 (Note 6). |
CAPITAL STOCK AND ADDITIONAL PA
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL | 12 Months Ended |
Jul. 31, 2016 | |
Capital Stock And Additional Paid-in-capital | |
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL | 8. CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL Issued Capital Stock On February 11, 2015, the Company entered into debt conversion agreements with five investors pursuant to which such investors agreed to convert an aggregate of $400,000 in debt into 20,000,000 shares of the Company’s common stock at a price of $0.02 per share. On March 31, 2015, the Company entered into debt conversion agreements with 13 investors pursuant to which such investors agreed to convert an aggregate of $206,675 in debt into 10,333,771 shares of the Company’s common stock at a price of $0.02 per share. These shares were formally issued on April 9, 2015. On April 23, 2015, the Company entered into debt conversion agreements with two investors pursuant to which such investors agreed to convert an aggregate of $40,982 in debt into 1,170,906 shares of the Company’s common stock at a price of $0.035 per share. On April 23, 2015, the Company completed a non-brokered private placement, issuing an aggregate of 6,000,002 shares of common stock to six investors at a price of $0.035 per share for gross proceeds of $210,000. On October 28, 2015, pursuant to a share surrender and cancellation agreement, the Company cancelled 13,000,186 shares of common stock surrendered to the Company, originally issued through the debt conversion agreements on February 11, 2015 and March 31, 2015. On January 29, 2016, the Company completed an initial public offering in Canada, issuing an aggregate of 6,050,000 shares of common stock at a price of $0.10 per share for gross proceeds of $605,000. In connection with the offering, the Company paid a cash commission of $48,400 and issued 484,000 agent warrants valued at $42,248 (discount rate – 0.43%, volatility – 215.3%, expected life – 2 years, dividend yield – 0%), exercisable at $0.10 per share for period of 24 months. The Company also paid the agent a corporate finance fee of $25,000 and incurred other share issuance costs of $53,667. On June 3, 2016, the Company issued 19,250 shares of common stock upon the exercise of agent warrants at a price of $0.10 per share. On July 18, 2016, the Company issued 1,500,000 shares of common stock at a price of $0.16 per share to Klondike pursuant to the Klondike properties purchase agreement (Note 4). Stock Options During the year ended July 31, 2016, the Company granted 2,700,000 stock options, exercisable at a price of $0.15 per share for a period of five years, to directors and consultants. The following incentive stock options were outstanding at July 31, 2016: Number of Shares Exercise Price Expiry Date 2,700,000 $ 0.15 January 31, 2021 Warrants During the year ended July 31, 2016, the Company: a) Issued 484,000 agent warrants pursuant to the initial public offering in January 2016 (Note 8), of which a total of 19,250 warrants were exercised during the current year, and b) Issued 1,500,000 warrants pursuant to the Klondike properties purchase agreement (Note 4). The following warrants were outstanding at July 31, 2016: Number Exercise Expiry Date 464,750 $ 0.10 January 29, 2018 1,500,000 0.227 July 13, 2018 1,964,750 $ 0.20 Share-Based Payments The Company has a stock option plan under which it is authorized to grant options to executive officers, directors, employees and consultants enabling them to acquire up to 10% of the issued and outstanding common stock of the Company. Under the plan the exercise price of each option equals the market price of the Company’s stock, less any applicable discount, as calculated on the date of grant. The options can be granted for a maximum term of 5 years with vesting determined by the board of directors. During the period ended July 31, 2016, the Company granted 2,700,000 (2015 – Nil) stock options with a weighted average fair value of $0.14 (2015 - $Nil). The Company recognized share-based payments expense of $369,006 (2015 - $Nil). The following weighted average assumptions were used for the Black-Scholes option-pricing model valuation of stock options granted during the year: 2016 2015 Risk-free interest rate 0.64 % N/A Expected life of options 5.00 years N/A Expected annualized volatility 151.50 % N/A Dividend — N/A Forfeiture rate — N/A |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES As of July 31, 2016, 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, 2016 and 2015 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: 2016 2015 Loss before income taxes $ (633,466 ) $ (132,733 ) Expected income tax (recovery) at statutory tax rates $ (215,000 ) $ (45,000 ) Permanent differences 186,000 (4,000 ) Valuation allowance 29,000 49,000 Income tax recovery $ — $ — Significant components of deferred tax assets (liabilities) that have not been included on the Company’s balance sheet are as follows: 2016 2015 Deferred tax assets (liabilities): Mineral properties (72,000 ) — Net operating loss carry-forwards 632,000 476,000 Unrecognized deferred tax assets $ 560,000 $ 476,000 The Company has approximately $1,859,000 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 RE
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | 12 Months Ended |
Jul. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | 10. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS During the year ended July 31, 2016, the Company: a) Issued 1,500,000 shares of common stock at $0.16 per share, valued at $240,000 for mineral properties (Note 4). b) Issued 484,000 agent warrants valued at $42,248 (Note 8). c) Issued 1,500,000 warrants valued at $223,031 for mineral properties (Note 4). d) Cancelled 13,000,186 shares of common stock valued at $13,000, pursuant to a share surrender and cancellation agreement (Note 8) e) Accrued $2,664 in share issuance costs through accounts payable and accrued liabilities. During the year ended July 31, 2015, the Company: a) Issued 31,504,677 shares of common stock to settle debt of $647,657 and accrued deferred financing costs of $13,824 through accounts payable and accrued liabilities. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Jul. 31, 2016 | |
Segmented Information | |
SEGMENTED INFORMATION | 11. SEGMENTED INFORMATION The Company has one reportable segment, being the acquisition of exploration and evaluation assets located in British Columbia, Canada. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Jul. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 12. SUBSEQUENT EVENTS Subsequent to July 31, 2016: a) On August 1, 2016, the Company appointed Benjamin Mossman as the Chief Executive Officer and a director of the Company; in connection with the appointment, the Company issued 400,000 shares of common stock and granted 586,600 stock options exercisable at $0.20 until August 8, 2021. b) On August 30, 2016, the Company entered into an option agreement with three parties to purchase a 100% interest in and to certain lands and surface rights in the United States. Upon execution of the option agreement, the Company paid the vendors a non-refundable cash deposit in the amount of US$25,000; an additional cash payment of US$2,000,000 required to exercise the option. c) On October 6, 2016, the Company announced a non-brokered private placement of up to 17,500,000 units at a price of $0.20 per unit for gross proceeds of up to $3,500,000. Each unit will consist of one share of the Company’s common stock and one-half of a transferable share purchase warrant, with each whole warrant exercisable into one share of common stock at a price of $0.40 for a period of two years from the date of issuance. |
BASIS OF PREPARATION (Policies)
BASIS OF PREPARATION (Policies) | 12 Months Ended |
Jul. 31, 2016 | |
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. |
Change in Functional and Presentation Currency | Change in Functional and Presentation Currency The Company’s expenses and overheads are now primarily being incurred in Canadian Dollars (“CAD”) and it is anticipated that cash flows will continue to be primarily in CAD. Accordingly, the Company determined that effective August 1, 2015, the functional currency of the Company would change from the United States Dollar (“USD”) to CAD. Effective August 1, 2015, the Company also changed its presentation currency from USD to CAD. As a result of changing the presentation currency, all the comparative assets and liabilities were translated using the closing rate at the balance sheet date, comparative equity were translated at the exchange rates at the dates of transaction and the statements of loss were translated at the average exchange rate for the period covered. All resulting change differences are recognized in the accumulated deficit in the balance sheets’ shareholders’ equity (deficiency) section. A change in presentation currency is accounted for as a change in accounting policy and is applied retrospectively, as if the new presentation currency had always been the presentation currency. Consequently, the comparatives for the year ended July 31, 2015 and as at July 31, 2015 have been restated to be presented in CAD. The exchange rates applied for translation purposes were as follows: Date or period Exchange rate As at July 31, 2015 1 CAD = 0.7703 USD For the year ended July 31, 2015 1 CAD = 0.8403 USD |
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. |
Restatement | Restatement Certain prior year balances within equity have been restated to comply with the Company’s accounting policies. |
SIGNIFICANT ACCOUNTING POLICI20
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jul. 31, 2016 | |
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 |
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 loan 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, 2016 and 2015, 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 Canadian dollar. Any monetary assets and liabilities that are in a currency other than the Canadian 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 Canadian dollars are included in current results of operations. |
Recent accounting pronouncements | Recently adopted and recently issued accounting standards In August 2014, the FASB 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. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. This ASU eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent amounts in a classified balance sheet and replaces it with a noncurrent classification of deferred tax assets and liabilities. The ASU applies to all entities and is effective for annual periods beginning after December 15, 2017, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of adoption of this standard. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities”. This ASU amendment addresses aspects of recognition, measurement, presentation and disclosure of financial instruments. It affects investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value, and simplifies the impairment assessment of equity investments without a readily determinable fair value by requiring a qualitative assessment. The ASU applies to all entities and is effective for annual periods beginning after December 15, 2017, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of adoption of this standard. Other than the above, the Company has determined that other significant newly issued accounting pronouncements and are either not applicable to the Company’s business or that no material effect is expected on the financial statements as a result of future adoption. |
BASIS OF PREPARATION (Tables)
BASIS OF PREPARATION (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Basis Of Preparation Tables | |
Exchange rates used for foreign currency translation | Date or period Exchange rate As at July 31, 2015 1 CAD = 0.7703 USD For the year ended July 31, 2015 1 CAD = 0.8403 USD |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income taxes statutory rates | 2016 2015 Loss before income taxes $ (633,466 ) $ (132,733 ) Expected income tax (recovery) at statutory tax rates $ (215,000 ) $ (45,000 ) Permanent differences 186,000 (4,000 ) Valuation allowance 29,000 49,000 Income tax recovery $ — $ — |
Schedule of Deferred Tax Assets | 2016 2015 Deferred tax assets (liabilities): Mineral properties (72,000 ) — Net operating loss carry-forwards 632,000 476,000 Unrecognized deferred tax assets $ 560,000 $ 476,000 |
CAPITAL STOCK AND ADDITIONAL 23
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Capital Stock And Additional Paid-in-capital Tables | |
Schedule of Stock Option Outstanding | Number of Shares Exercise Price Expiry Date 2,700,000 $ 0.15 January 31, 2021 |
Schedule of Stock Warrants Outstanding | Number Exercise Expiry Date 464,750 $ 0.10 January 29, 2018 1,500,000 0.227 July 13, 2018 1,964,750 $ 0.20 |
Schedule of stock option granted during the year | 2016 2015 Risk-free interest rate 0.64 % N/A Expected life of options 5.00 years N/A Expected annualized volatility 151.50 % N/A Dividend — N/A Forfeiture rate — N/A |
NATURE AND CONTINUANCE OF OPE24
NATURE AND CONTINUANCE OF OPERATIONS (Details Narrative) - CAD | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Feb. 16, 2015 | |
Nature And Continuance Of Operations Details Narrative | |||
Loss for the period | CAD 633,466 | CAD 132,733 | |
Accumulated Deficit | 1,836,969 | CAD 1,203,503 | |
Working capital deficiency | CAD 58,602 | ||
Authorized Capital of Company | 400,000,000 | 400,000,000 | 400,000,000 |
BASIS OF PREPARATION (Details)
BASIS OF PREPARATION (Details) | Jul. 31, 2016 |
Year Ended CAD : USD Exchange Rate [Member] | |
Exchange Rate | 0.8403 |
As on CAD : USD Exchange Rate [Member] | |
Exchange Rate | 0.7703 |
BAD DEBT EXPENSE (Details Narra
BAD DEBT EXPENSE (Details Narrative) - CAD | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Bad debt expense | CAD 7,126 | CAD 6,748 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - CAD | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Related Party Transactions (Textual) [Abstract] | ||
Salaries | CAD 5,365 | |
Share Based Compensation | 369,006 | |
Chief Executive Officer [Member] | ||
Related Party Transactions (Textual) [Abstract] | ||
Salaries | 5,000 | 0 |
Formar Ceo [Member] | ||
Related Party Transactions (Textual) [Abstract] | ||
Consulting fees | 30,000 | 19,203 |
Chief Financial Officer [Member] | ||
Related Party Transactions (Textual) [Abstract] | ||
Consulting fees | 18,000 | 0 |
Former CEO, CFO and Director [Member] | ||
Related Party Transactions (Textual) [Abstract] | ||
Share Based Compensation | CAD 246,004 | CAD 0 |
CAPITAL STOCK AND ADDITIONAL 28
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL (Details) | 12 Months Ended |
Jul. 31, 2016CAD / sharesshares | |
Stock Option [Member] | |
Number of Shares | shares | 2,700,000 |
Exercise Price | CAD / shares | CAD 0.15 |
Expiry Date | Jan. 31, 2021 |
Warrant One [Member] | |
Number of Shares | shares | 464,750 |
Exercise Price | CAD / shares | CAD 0.10 |
Expiry Date | Jan. 29, 2018 |
Warrant Two [Member] | |
Number of Shares | shares | 1,500,000 |
Exercise Price | CAD / shares | CAD 0.227 |
Expiry Date | Jul. 13, 2018 |
Warrant [Member] | |
Number of Shares | shares | 1,964,750 |
Exercise Price | CAD / shares | CAD 0.20 |
CAPITAL STOCK AND ADDITIONAL 29
CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL (Details 2) - Stock Option [Member] | 12 Months Ended |
Jul. 31, 2016 | |
Risk-free interest rate | 0.64% |
Expected life of options | 5 years |
Expected annualized volatility | 151.50% |
INCOME TAXES (Details)
INCOME TAXES (Details) - CAD | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Loss before income taxes | CAD (633,466) | CAD (132,733) |
Expected income tax (recovery) at statutory tax rates | (215,000) | (45,000) |
Permanent differences | 186,000 | (4,000) |
Valuation allowance | 29,000 | 49,000 |
Income tax recovery |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - CAD | Jul. 31, 2016 | Jul. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Mineral properties | CAD (72,000) | |
Net operating loss carry-forwards | 632,000 | 476,000 |
Unrecognized deferred tax assets | CAD 560,000 | CAD 476,000 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Jul. 31, 2016CAD | |
Income Tax Disclosure [Abstract] | |
Operating Loss | CAD 1,859,000 |
SUPPLEMENTAL DISCLOSURE WITH 33
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Details Narrative) - CAD | Jul. 31, 2016 | Jul. 31, 2015 |
Shares Issued | 32,866,261 | 38,297,197 |
Fair value of Shares Issued | CAD 32,867 | CAD 38,298 |
Mineral Property Options [Member] | ||
Shares Issued | 31,504,677 | |
Fair value of Shares Issued | CAD 515,954 |