Texas Mineral Resources (TMRC) 10-Q 13 Jul 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	May 31, 2020	Jul. 08, 2020
Details
Registrant CIK	0001445942
Fiscal Year End	--08-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2020
Document Transition Report	false
Entity File Number	000-53482
Entity Registrant Name	Texas Mineral Resources Corp.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-0294969
Entity Address, Address Line One	539 El Paso Street
Entity Address, City or Town	Sierra Blanca
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79851
Entity Address, Address Description	Address of Principal Executive Offices
City Area Code	915
Local Phone Number	369-2133
Phone Fax Number Description	Registrant’s Telephone Number, including Area Code
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		72,688,854
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	May 31, 2020	Aug. 31, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 1,392,877	$ 1,824,546
Prepaid expenses and other current assets	25,904	4,450
Total current assets	1,418,781	1,828,996
Mineral properties, net	354,234	354,234
TOTAL ASSETS	1,773,015	2,183,230
CURRENT LIABILITIES
Accounts payable and accrued liabilities	716,422	1,118,070
Advances from related party	287,371	190,454
Current portion of note payable	26,875	123,542
Total current liabilities	1,030,668	1,432,066
Total liabilities	1,030,668	1,432,066
SHAREHOLDERS' EQUITY
Preferred Stock, Value	0	0
Common Stock, Value	610,994	562,050
Additional paid-in capital	38,577,229	37,940,809
Accumulated deficit	(38,445,876)	(37,751,695)
Total shareholders' equity	742,347	751,164
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,773,015	$ 2,183,230

BALANCE SHEETS (Unaudited) - Pa

BALANCE SHEETS (Unaudited) - Parenthetical - $ / shares	May 31, 2020	Aug. 31, 2019
Details
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	61,099,449	56,204,994
Common Stock, Shares, Outstanding	61,099,449	56,204,994

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited, May 31 2019 Restated) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
OPERATING EXPENSES
Exploration costs	$ 69,212	$ 18,328	$ 75,399	$ 48,437
General and administrative expenses	226,798	84,599	542,763	490,476
Total operating expenses	296,010	102,927	618,162	538,913
LOSS FROM OPERATIONS	(296,010)	(102,927)	(618,162)	(538,913)
OTHER INCOME (EXPENSE)
Loss on settlement of accrued liability	0	0	(66,335)	0
Interest and other expense	(3,430)	(4,905)	(9,684)	(15,695)
Total other income (expense)	(3,430)	(4,905)	(76,019)	(15,695)
NET LOSS	$ (299,440)	$ (107,832)	$ (694,181)	$ (554,608)
Net loss per share:
Basic and diluted net loss per share	$ (0.01)	$ 0	$ (0.01)	$ (0.01)
Basic and diluted	57,448,168	46,686,252	58,662,191	45,956,600

STATEMENTS OF SHAREHOLDERS' EQU

STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Equity Balance, Starting at Aug. 31, 2018	$ 0	$ 449,416	$ 33,275,248	$ (35,370,321)	$ (1,645,657)
Shares Outstanding, Starting at Aug. 31, 2018	0	44,941,532
Stock Issued During Period, Value, Issued for Services	$ 0	$ 0	3,311	0	3,311
Stock Issued During Period, Shares, Issued for Services	0	0
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments	$ 0	$ 5,000	100,000	0	105,000
Stock Issued During Period, Shares, Conversion of Convertible Securities	0	500,000
Cash received for unissued common stock, Value	$ 0	$ 0	140,000	0	140,000
Cash received for unissued common stock, Shares	0	0
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	$ 0	256,637	0	256,637
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0	0
Net Income (Loss)	$ 0	$ 0	0	(350,000)	(350,000)
Shares Outstanding, Ending at Nov. 30, 2018	0	45,441,532
Equity Balance, Ending at Nov. 30, 2018	$ 0	$ 454,416	33,775,196	(35,720,321)	(1,490,709)
Stock Issued During Period, Value, Other	$ 0	$ 0	6,692		6,692
Stock Issued During Period, Shares, Other	0	0
Issuance of common stock previously unissued, Value	$ 0	$ 6,460	(6,460)	0	0
Issuance of common stock previously unissued, Shares	0	646,054
Syndication costs, Value	$ 0	$ 5,987	(14,387)	0	(8,400)
Syndication costs, Shares	0	598,666
Net Income (Loss)	$ 0	$ 0	0	(96,776)	(96,776)
Shares Outstanding, Ending at Feb. 28, 2019	0	46,686,252
Equity Balance, Ending at Feb. 28, 2019	$ 0	$ 466,863	33,761,041	(35,817,097)	(1,589,193)
Stock Issued During Period, Value, Issued for Services	$ 0	$ 0	8,570	0	8,570
Stock Issued During Period, Shares, Issued for Services	0	0
Net Income (Loss)	$ 0	$ 0	0	(107,832)	(107,832)
Shares Outstanding, Ending at May. 31, 2019	0	46,686,252
Equity Balance, Ending at May. 31, 2019	$ 0	$ 466,863	33,769,611	(35,924,929)	(1,688,455)
Equity Balance, Starting at Aug. 31, 2019	$ 0	$ 562,050	37,940,809	(37,751,695)	751,164
Shares Outstanding, Starting at Aug. 31, 2019	0	56,204,994
Stock Issued During Period, Value, Issued for Services	$ 0	$ 135	4,865	0	5,000
Stock Issued During Period, Shares, Issued for Services	0	13,514
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments	$ 0	$ 100	(100)	0	0
Stock Issued During Period, Shares, Conversion of Convertible Securities	0	10,000
Net Income (Loss)	$ 0	$ 0	0	(93,622)	(93,622)
Shares Outstanding, Ending at Nov. 30, 2019	0	56,228,508
Equity Balance, Ending at Nov. 30, 2019	$ 0	$ 562,285	37,945,574	(37,845,317)	662,542
Stock Issued During Period, Value, Issued for Services	$ 0	$ 0	37,333	0	37,333
Stock Issued During Period, Shares, Issued for Services	0	0
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments	$ 0	$ 46,362	426,138	0	472,500
Stock Issued During Period, Shares, Conversion of Convertible Securities	0	4,636,375
Stock Issued During Period, Value, Other	$ 0	$ 1,309	110,026	0	111,335
Stock Issued During Period, Shares, Other	0	130,892
Net Income (Loss)	$ 0	$ 0	0	(301,119)	(301,119)
Shares Outstanding, Ending at Feb. 29, 2020	0	60,995,775
Equity Balance, Ending at Feb. 29, 2020	$ 0	$ 609,956	38,519,071	(38,146,436)	982,591
Stock Issued During Period, Value, Issued for Services	$ 0	$ 876	55,125	0	56,001
Stock Issued During Period, Shares, Issued for Services	0	87,501
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments	$ 0	$ 162	(162)	0	0
Stock Issued During Period, Shares, Conversion of Convertible Securities	0	16,173
Cash received for unissued common stock, Value	$ 0	$ 0	3,195	0	3,195
Cash received for unissued common stock, Shares	0	0
Net Income (Loss)	$ 0	$ 0	0	(299,440)	(299,440)
Shares Outstanding, Ending at May. 31, 2020	0	61,099,449
Equity Balance, Ending at May. 31, 2020	$ 0	$ 610,994	$ 38,577,229	$ (38,445,876)	$ 742,347

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited, May 31 2019 Restated) - USD ($)	9 Months Ended
	May 31, 2020	May 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (694,181)	$ (554,608)
Adjustments to reconcile net loss to net cash used in operating activities:
Imputed interest	11,291	0
Stock based compensation	98,334	275,210
Loss on settlement of accrued liabilities	66,335	0
Changes in current assets and liabilities:
Prepaid expenses and other assets	(21,454)	(2,667)
Accounts payable and accrued expenses	(356,648)	143,861
Net cash used in operating activities	(896,323)	(138,204)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash from sale of common stock and exercise of warrants	475,695	140,000
Payment for syndication costs	0	(8,400)
Payments on notes payable	(107,958)	0
Advances from related parties	100,917	0
Payment on advances from related party	(4,000)	(6,000)
Net cash provided by financing activities	464,654	125,600
NET CHANGE IN CASH AND CASH EQUIVALENTS	(431,669)	(12,604)
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	1,824,546	31,591
Cash and Cash Equivalents, at Carrying Value, Ending Balance	1,392,877	18,987
Non-cash Transactions
Warrants issued for syndication costs	0	8,400
SUPPLEMENTAL INFORMATION
Interest paid	0	0
Taxes paid	$ 0	$ 0

NOTE 1 - BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION	9 Months Ended
	May 31, 2020
Notes
NOTE 1 - BASIS OF PRESENTATION	NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited interim financial statements of Texas Mineral Resources Corp. (“we”, “us”, “our”, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in our annual report on Form 10-K/A, for the year ended August 31, 2019, dated June 3, 2020 as filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2019 as reported in our annual report on Form 10-K/A, have been omitted.

NOTE 2 - RESTATEMENT

NOTE 2 - RESTATEMENT	9 Months Ended
	May 31, 2020
Notes
NOTE 2 - RESTATEMENT	NOTE 2 – RESTATEMENT The accompanying statements of operations, shareholders’ equity (deficit) and cashflows for the nine months ended May 31, 2019 have been restated to properly account for the issuance of common stock in connection with a debt modification of a long-term debt agreement with the Rio Grande Valley Foundation. The adjustment reflected in the below table properly recognizes the issuance of common stock valued at $105,000 as a reduction to the outstanding note payable balance in connection with a modification of the note. Previously the Company had accounted for the $105,000 as a consulting fee during the nine months ended May 31, 2019. Nine Months Ended May 31, 2019 Previously Reported Adjustments Restated Operating Expenses Exploration costs $ 48,437 $ - $ 48,437 General and administrative expenses 595,476 (105,000) 490,476 Total operating expenses 643,913 (105,000) 538,913 Loss from operations (643,913) 105,000 (538,913) Other income (expense) Interest and other expense (15,695) - (15,695) Total other income (expense) (15,695) - (15,695) Net loss $ (659,608) $ 105,000 $ (554,608) Net loss per share Basic and diluted loss per share $ (0.01) $ - $ (0.01) Weighted average shares outstanding: Basic and diluted 45,956,600 - 45,956,600 The above adjustments had no impact on total cash flows from operating activities, investing activities or financing activities for the nine months ended May 31, 2019.

NOTE 3 - MINERAL PROPERTIES

NOTE 3 - MINERAL PROPERTIES	9 Months Ended
	May 31, 2020
Notes
NOTE 3 - MINERAL PROPERTIES	NOTE 3 – MINERAL PROPERTIES September 2011 Lease On September 2, 2011, we entered into a new mining lease with the Texas General Land Office covering Sections 7 and 18 of Township 7, Block 71 and Section 12 of Block 72, covering approximately 860 acres at Round Top Mountain in Hudspeth County, Texas. The mining lease issued by the Texas General Land Office gives us the right to explore, produce, develop, mine, extract, mill, remove, and market beryllium, uranium, rare earth elements, all other base and precious metals, industrial minerals and construction materials and all other minerals excluding oil, gas, coal, lignite, sulfur, salt, and potash. The term of the lease is nineteen years so long as minerals are produced in paying quantities. Under the lease, we will pay the State of Texas a lease bonus of $142,518; $44,718 of which was paid upon the execution of the lease, and $97,800 which will be due when we submit a supplemental plan of operations to conduct mining. Upon the sale of minerals removed from Round Top, we will pay the State of Texas a $500,000 minimum advance royalty. Thereafter, we will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals removed and sold from Round Top. Assuming production of paying quantities has not been obtained, we may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule: Per Acre Total Amount Amount September 2, 2015 – 2019 $ 75 $ 67,077 September 2, 2020 – 2024 150 134,155 September 2, 2025 – 2029 200 178,873 In August 2019, we paid a delay rental to the State of Texas in the amount of $67,077. November 2011 Lease On November 1, 2011, we entered into a mining lease with the State of Texas covering 90 acres, more or less, of land that is adjacent to the land we purchased in September 2011 near our Round Top site. The deed was recorded with Hudspeth County on September 16, 2011. Under the lease, we paid the State of Texas a lease bonus of $20,700 which was paid upon the execution of the lease. Upon the sale of minerals removed from Round Top, we will pay the State of Texas a $50,000 minimum advance royalty. Thereafter, we will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals sold from Round Top. Assuming production of paying quantities has not been obtained, we may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule: Per Acre Total Amount Amount November 1, 2015 – 2019 $ 75 $ 6,750 November 1, 2020 – 2024 150 13,500 November 1, 2025 – 2029 200 18,000 In August 2019, we paid a delay rental to the State of Texas of $6,750. March 2013 Lease On March 6, 2013, we purchased the surface lease at the Round Top Project, known as the West Lease, from the Southwest Range & Wildlife Foundation, since renamed the Rio Grande Foundation (the “Foundation”) for $500,000 cash and 1,063,830 shares of our common stock. We also agreed to support the Foundation through an annual payment of $45,000 for ten years to support conservation efforts within the Rio Grande Basin and in particular engaging in stewardship of Lake Amistad, a large and well-known fishing lake near Del Rio, Texas. This commitment was treated as a note payable because it was in connection with obtaining the lease, see Note 4. The West Lease comprises approximately 54,990 acres. Most importantly, the purchase of the surface lease gave us unrestricted surface access for the potential development and mining of our Round Top Project. We are currently paying $13,235 monthly until the balance owed to the Foundation has been fully paid. October 2014 Surface Option and Water Lease On October 29, 2014, we announced that we had executed agreements with the Texas General Land Office securing the option to purchase the surface rights covering the potential Round Top project mine and plant areas and, separately, a lease to develop the water that we believe will be necessary for the potential Round Top project mine operations. The option to purchase the surface rights covers approximately 5,670 acres over the mining lease and the additional acreage adequate to site all potential heap leaching and processing operations as currently anticipated by the Company. We may exercise the option for all or part of the option acreage at any time during the sixteen-year primary term of the mineral lease. The option can be kept current by an annual payment of $10,000. The purchase price will be the appraised value of the surface at the time of exercising the option. All annual payments have been made as of the date of this filing. The ground water lease secures our right to develop the ground water within a 13,120 acre lease area located approximately 4 miles from the Round Top deposit. The lease area contains five existing water wells. It is anticipated that all potential water needs for the Round Top project mine operations would be satisfied by the existing wells covered by this water lease. This lease has an annual minimum production payment of $5,000 prior to production of water for the operation. After initiation of production we will pay $0.95 per thousand gallons or $20,000 annually, whichever is greater. This lease remains effective as long as the mineral lease is in effect. The minimum production payment for all the fiscal years have been made as of the date of this filing.

NOTE 4 - NOTE PAYABLE

NOTE 4 - NOTE PAYABLE	9 Months Ended
	May 31, 2020
Notes
NOTE 4 - NOTE PAYABLE	NOTE 4 – NOTE PAYABLE In relation to the Foundation lease discussed in Note 3, the Company recorded a note payable for an amount for the initial $45,000 due upon signing of the lease and the nine (9) future payments due of $45,000 which was recorded at its present value discounted with an imputed interest rate of 5% for a total note payable of $364,852. The Company made payments of approximately $100,000 and was unable to pay as agreed and in January 2019 the Company entered into a settlement agreement with the Foundation and agreed to pay $225,000 in monthly installments of approximately $13,000, with the final payment to occur in July 2020. The Company recognized accretion of the discount through interest expense of $11,291 and $11,250 for the nine months ended May 31, 2020 and May 31, 2019, respectively. As of May 31, 2020, the note payable balance is $26,875.

NOTE 5 - ADVANCES FROM RELATED

NOTE 5 - ADVANCES FROM RELATED PARTIES	9 Months Ended
	May 31, 2020
Notes
NOTE 5 - ADVANCES FROM RELATED PARTIES	NOTE 5 – ADVANCES FROM RELATED PARTIES During the nine months ended May 31, 2020, the Company received advances from its joint venture partner in the Round Top Project totaling approximately $101,000 which was primarily used to make monthly payments on the note payable discussed in Note 4. At May 31, 2020, total advances received from the joint venture partner were approximately $287,000.

NOTE 6 - SHAREHOLDERS' EQUITY

NOTE 6 - SHAREHOLDERS' EQUITY	9 Months Ended
	May 31, 2020
Notes
NOTE 6 - SHAREHOLDERS' EQUITY	NOTE 6 – SHAREHOLDERS’ EQUITY Capital Stock Our authorized capital stock consists of 100,000,000 shares of common stock, with a par value of $0.01 per share, and 10,000,000 preferred shares with a par value of $0.001 per share. All shares of common stock have equal voting rights and, when validly issued and outstanding, are entitled to one non-cumulative vote per share in all matters to be voted upon by shareholders. The shares of common stock have no pre-emptive, subscription, conversion or redemption rights and may be issued only as fully paid and non-assessable shares. Holders of the common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by our Board of Directors (our “Board”) out of funds legally available. In the event of a liquidation, dissolution or winding up of the affairs of the Corporation, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment or provision for all liabilities and any preferential liquidation rights of any preferred stock then outstanding. On September 16, 2019, the holder of 10,000 of our common stock warrants converted these warrants into 10,000 shares of our common stock. On October 29, 2019, we issued 13,514 shares of our common stock to a new Advisory Board Member. In December 2019, we announced the extension of the expiration date of the Class A and Class B warrants to December 7, 2020. As of May 1, 2020, there are issued and outstanding Class A warrants to purchase an aggregate of 1,556,507 shares of Company common stock at an exercise price of $0.35 per share, and Class B warrants to purchase an aggregate of 1,579,225 shares of Company common stock at an exercise price of $0.50 per share. In December 2019, 700,000 common stock options were exercised on a cashless basis by a consultant for 500,000 shares of our common stock. In December 2019, 500,000 common stock options were exercised on a cashless basis by our chief financial officer for 410,377 shares of our common stock. In January 2020, 130,892 shares of common stock valued at $111,335 was issued to settle accrued compensation payable to an ex-employee in the amount of $45,000, resulting in a loss on settlement of $66,335. The loss represents the difference in the carrying amount of the liability and the fair value of the stock issued. In January and February 2020, 1,350,000 common stock warrants were exercised by investors at an exercise price of $0.35 per warrant for cash totaling $472,500. In January and February 2020, 4,147,279 common stock warrants were exercised by investors on a cashless basis into 2,375,998 shares of our common stock. In January 2020, we entered into three consulting agreements whereby the consideration was 699,999 shares of common stock (233,333 per agreement) that vest ratably over a 24-month period. At May 31, 2020, 116,664 shares had vested, 29,165 of which were unissued. We recognized $93,333 during the period related to these shares and included in general and administrative expenses. Subsequent to February 2020, the consultants have requested that we hold the remaining shares issuable over the contract period in trust or at a time sooner during the contract period whereby the contractors can request their shares in accordance with the agreements. During May 2020, 28,000 common stock warrants were exercised by investors on a cashless basis for 16,173 shares of our common stock. During the third quarter, we issued 30,000 options to a consultant valued at $8,570. We had 61,099,449 shares of our common stock outstanding as of May 31, 2020.

NOTE 7 - UNCERTAINTIES

NOTE 7 - UNCERTAINTIES	9 Months Ended
	May 31, 2020
Notes
NOTE 7 - UNCERTAINTIES	NOTE 7 – UNCERTAINTIES In March 2020, the World Health Organization designated the new coronavirus (“COVID-19”) as a global pandemic. Federal, state and local governments have mandated orders to slow the transmission of the virus, including but not limited to shelter-in-place orders, quarantines, restrictions on travel, and work restrictions that prohibit many employees from going to work. Uncertainty with respect to the economic effects of the pandemic has resulted in significant volatility in the financial markets. The restrictions put in place by federal, state and local governments could delay our exploration and development plans related to the Round Top Project. We continue to move forward on the project in an effort to obtain a bank feasibility study; however, restrictions on the number of personnel that can gather in a single location and work restrictions on vendor businesses may delay aspects of the project until such restrictions are lifted. Furthermore, the impact of the pandemic on the global economy could also negatively impact the availability and cost of future borrowings should the need arise.

NOTE 8 - SUBSEQUENT EVENTS

NOTE 8 - SUBSEQUENT EVENTS	9 Months Ended
	May 31, 2020
Notes
NOTE 8 - SUBSEQUENT EVENTS	NOTE 8 – SUBSEQUENT EVENTS During June 2020, warrants to purchase 4,200,000 shares of common stock were exercised by investors at an exercise price of $0.35 per warrant for cash totaling $1,470,000. During June 2020, an option to purchase 70,000 shares of common stock was exercised by a consultant at an exercise price of $0.30 per option for cash totaling $21,000. During June 2020, options to purchase 2,210,000 shares of common stock were exercised by certain directors on a cashless basis into 2,055,408 shares of our common stock. During June 2020, warrants to purchase 2,574,190 shares of common stock were exercised by certain directors and officers on a cashless basis for 2,251,922 shares of our common stock. During June 2020, warrants to purchase 2,871,314 shares of common stock were exercised by investors on a cashless basis.

NOTE 2 - RESTATEMENT_ Restateme

NOTE 2 - RESTATEMENT: Restatement of Statement of Operatioins (Policies)	9 Months Ended
	May 31, 2020
Policies
Restatement of Statement of Operatioins	Nine Months Ended May 31, 2019 Previously Reported Adjustments Restated Operating Expenses Exploration costs $ 48,437 $ - $ 48,437 General and administrative expenses 595,476 (105,000) 490,476 Total operating expenses 643,913 (105,000) 538,913 Loss from operations (643,913) 105,000 (538,913) Other income (expense) Interest and other expense (15,695) - (15,695) Total other income (expense) (15,695) - (15,695) Net loss $ (659,608) $ 105,000 $ (554,608) Net loss per share Basic and diluted loss per share $ (0.01) $ - $ (0.01) Weighted average shares outstanding: Basic and diluted 45,956,600 - 45,956,600

NOTE 3 - MINERAL PROPERTIES_ Sc

NOTE 3 - MINERAL PROPERTIES: Schedule of September 2011 Lease (Tables)	9 Months Ended
	May 31, 2020
Tables/Schedules
Schedule of September 2011 Lease	Per Acre Total Amount Amount September 2, 2015 – 2019 $ 75 $ 67,077 September 2, 2020 – 2024 150 134,155 September 2, 2025 – 2029 200 178,873

NOTE 3 - MINERAL PROPERTIES_ _2

NOTE 3 - MINERAL PROPERTIES: Schedule of November 2011 Lease (Tables)	9 Months Ended
	May 31, 2020
Tables/Schedules
Schedule of November 2011 Lease	Per Acre Total Amount Amount November 1, 2015 – 2019 $ 75 $ 6,750 November 1, 2020 – 2024 150 13,500 November 1, 2025 – 2029 200 18,000

NOTE 2 - RESTATEMENT_ Restate_2

NOTE 2 - RESTATEMENT: Restatement of Statement of Operatioins (Details)	9 Months Ended
	May 31, 2020USD ($)$ / sharesshares
Reported
OPERATING EXPENSES
Exploration costs	$ 48,437
General and administrative expenses	595,476
Total operating expenses	643,913
LOSS FROM OPERATIONS	(643,913)
OTHER INCOME (EXPENSE)
Interest and other expense	(15,695)
Total other income (expense)	(15,695)
NET LOSS	$ (659,608)
Basic and diluted net loss per share | $ / shares	$ (0.01)
Basic and diluted | shares	45,956,600
Scenario, Adjustment
OPERATING EXPENSES
Exploration costs	$ 0
General and administrative expenses	(105,000)
Total operating expenses	(105,000)
LOSS FROM OPERATIONS	105,000
OTHER INCOME (EXPENSE)
Interest and other expense	0
Total other income (expense)	0
NET LOSS	$ 105,000
Basic and diluted net loss per share | $ / shares	$ 0
Basic and diluted | shares	0
As Restated
OPERATING EXPENSES
Exploration costs	$ 48,437
General and administrative expenses	490,476
Total operating expenses	538,913
LOSS FROM OPERATIONS	(538,913)
OTHER INCOME (EXPENSE)
Interest and other expense	(15,695)
Total other income (expense)	(15,695)
NET LOSS	$ (554,608)
Basic and diluted net loss per share | $ / shares	$ (0.01)
Basic and diluted | shares	45,956,600

NOTE 4 - NOTE PAYABLE (Details)

NOTE 4 - NOTE PAYABLE (Details) - USD ($)	9 Months Ended
	May 31, 2020	May 31, 2019
Details
Debt Instrument, Description	Company recorded a note payable
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Face Amount	$ 364,852
Amortization of Debt Issuance Costs and Discounts	11,291	$ 11,250
Long-term Debt, Gross	$ 26,875

NOTE 6 - SHAREHOLDERS' EQUITY (

NOTE 6 - SHAREHOLDERS' EQUITY (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019	Aug. 31, 2019
Common Stock, Shares Authorized	100,000,000		100,000,000		100,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01		$ 0.01		$ 0.01
Preferred Stock, Shares Authorized	10,000,000		10,000,000		10,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001		$ 0.001		$ 0.001
Loss on settlement of accrued liability	$ 0	$ 0	$ (66,335)	$ 0
Common Stock, Shares, Outstanding	61,099,449		61,099,449		56,204,994
Transaction #1
Sale of Stock, Transaction Date			Sep. 16, 2019
Sale of Stock, Description of Transaction			the holder of 10,000 of our common stock warrants converted these warrants into 10,000 shares of our common stock
Transaction #2
Sale of Stock, Transaction Date			Oct. 29, 2019
Sale of Stock, Description of Transaction			we issued 13,514 shares of our common stock
Stock Issued During Period, Shares, New Issues			13,514
Transaction #3
Sale of Stock, Description of Transaction			700,000 common stock options were exercised
Transaction #4
Sale of Stock, Description of Transaction			500,000 common stock options were exercised
Transaction #5
Sale of Stock, Description of Transaction			130,892 shares of common stock valued at $111,335 was issued to settle accrued compensation payable
Stock Issued During Period, Shares, New Issues			130,892
Stock Issued			$ 45,000
Loss on settlement of accrued liability	$ (66,335)
Transaction #6
Sale of Stock, Description of Transaction			1,350,000 common stock warrants were exercised by investors
Transaction #7
Sale of Stock, Description of Transaction			4,147,279 common stock warrants were exercised by investors
Transaction #8
Sale of Stock, Description of Transaction			28,000 common stock warrants were exercised by investors
Transaction #9
Sale of Stock, Description of Transaction			we issued 30,000 options to a consultant

NOTE 8 - SUBSEQUENT EVENTS (Det

NOTE 8 - SUBSEQUENT EVENTS (Details)	9 Months Ended
	May 31, 2020
Event #1
Subsequent Event, Description	warrants to purchase 4,200,000 shares of common stock were exercised by investors
Event #2
Subsequent Event, Description	an option to purchase 70,000 shares of common stock was exercised by a consultant
Event #3
Subsequent Event, Description	options to purchase 2,210,000 shares of common stock were exercised by certain directors
Event #4
Subsequent Event, Description	warrants to purchase 2,574,190 shares of common stock were exercised by certain directors and officers
Event #5
Subsequent Event, Description	warrants to purchase 2,871,314 shares of common stock were exercised by investors