Texas Mineral Resources (TMRC) 10-Q 15 Jul 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	May 31, 2021	Jul. 11, 2021
Details
Registrant CIK	0001445942
Fiscal Year End	--08-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2021
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		71,904,028
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3

BALANCE SHEETS

BALANCE SHEETS - USD ($)	May 31, 2021	Aug. 31, 2020
CURRENT ASSETS
Cash and cash equivalents	$ 4,909,383	$ 2,746,451
Prepaid expenses and other current assets	115,850	183,199
Total current assets	5,025,233	2,929,650
Mineral properties, net	164,350	354,234
Deposits	12,620	7,500
TOTAL ASSETS	5,234,783	3,291,384
Property and equipment, net	32,580	0
CURRENT LIABILITIES
Accounts payable and accrued liabilities	144,215	502,427
Advances due to related party	11,000	591,401
Total current liabilities	155,215	1,093,828
Total liabilities	155,215	1,093,828
SHAREHOLDERS' EQUITY
Preferred Stock, Value	0	0
Common Stock, Value	719,040	713,233
Additional paid-in capital	41,150,947	40,376,847
Accumulated deficit	(36,790,419)	(38,892,524)
Total shareholders' equity	5,079,568	2,197,556
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 5,234,783	$ 3,291,384

BALANCE SHEETS - Parenthetical

BALANCE SHEETS - Parenthetical - $ / shares	May 31, 2021	Aug. 31, 2020
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	71,904,028	71,323,278
Common Stock, Shares, Outstanding	71,904,028	71,323,278

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2021	May 31, 2020	May 31, 2021	May 31, 2020
OPERATING EXPENSES
Exploration costs	$ 63,408	$ 69,212	$ 159,755	$ 75,399
General and administrative expenses	345,307	226,798	1,080,184	542,763
Total operating expenses	408,715	296,010	1,239,939	618,162
LOSS FROM OPERATIONS	(408,715)	(296,010)	(1,239,939)	(618,162)
OTHER INCOME (EXPENSE)
Loss on settlement of accrued liability	0	0	0	(66,335)
Gain on sale of interest in mineral properties	3,326,899	0	3,326,899	0
Interest expense	0	(3,430)	0	(9,684)
Grant income, net of grant related expenses	0	0	11,078	0
Other income (expense)	716	0	4,067	0
Total other income (expense)	3,327,615	(3,430)	3,342,044	(76,019)
NET INCOME (LOSS)	$ 2,918,900	$ (299,440)	$ 2,102,105	$ (694,181)
Earnings Per Share, Basic and Diluted
Earnings Per Share, Basic	$ 0.04	$ (0.01)	$ 0.03	$ (0.01)
Earnings Per Share, Diluted	$ 0.04	$ (0.01)	$ 0.03	$ (0.01)
Earnings Per Share, Diluted, Other Disclosures
Weighted Average Number of Shares Outstanding, Basic	71,697,503	57,448,168	71,558,951	58,662,191
Weighted Average Number of Shares Outstanding, Diluted	73,051,883	57,448,168	72,844,871	58,662,191

STATEMENTS OF SHAREHOLDERS' EQU

STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
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, Conversion of Convertible Securities, Net of Adjustments	$ 0	$ 100	(100)	0	0
Stock Issued During Period, Shares, Conversion of Convertible Securities	0	10,000
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
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, 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, Issued for Services	$ 0	$ 1,309	147,359	0	148,668
Stock Issued During Period, Shares, Issued for Services	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
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	$ 876	55,125	0	56,001
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0	87,501
Stock Issued During Period, Value, Stock Options Exercised	$ 0	$ 162	(162)	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	167,173
Cash received for unissued shares	$ 0	$ 0	3,195	0	3,195
Net Income (Loss)	$ 0	$ 0	0	(299,440)	(299,440)
Shares Outstanding, Ending at May. 31, 2020	0	61,250,449
Equity Balance, Ending at May. 31, 2020	$ 0	$ 610,994	38,577,229	(38,445,876)	742,347
Equity Balance, Starting at Aug. 31, 2020	$ 0	$ 713,233	40,376,847	(38,892,524)	2,197,556
Shares Outstanding, Starting at Aug. 31, 2020	0	71,323,278
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	$ 0	190,367	0	$ 190,367
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0	0			53,500
Common stock issued as payment of accrued director’s fees, Value		$ 619	91,881	0	$ 92,500
Common stock issued as payment of accrued director’s fees, Shares		61,936
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments	$ 0	$ 0	24,500	0	24,500
Stock Issued During Period, Shares, Conversion of Convertible Securities	0	0
Net Income (Loss)	$ 0	$ 0	0	(339,683)	(339,683)
Shares Outstanding, Ending at Nov. 30, 2020	0	71,385,214
Equity Balance, Ending at Nov. 30, 2020	$ 0	$ 713,852	40,683,595	(39,232,207)	2,165,240
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	$ 400	203,922	0	204,322
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0	40,042
Common stock issued as payment of accrued director’s fees, Shares		70,000
Stock Issued During Period, Value, Stock Options Exercised	$ 0	$ 1,696	(1,696)	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	169,506
Stock Issued During Period, Value, New Issues	$ 0	$ 700	(700)	0	0
Stock Issued During Period, Shares, New Issues	0
Net Income (Loss)	$ 0	$ 0	0	(477,112)	(477,112)
Shares Outstanding, Ending at Feb. 28, 2021	0	71,664,762
Equity Balance, Ending at Feb. 28, 2021	$ 0	$ 716,648	40,885,121	(39,709,319)	1,892,450
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	$ 132	211,286	0	$ 211,418
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0	13,266			53,500
Stock Issued During Period, Value, Stock Options Exercised	$ 0	$ 2,260	54,540	0	$ 56,800
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	226,000
Net Income (Loss)	$ 0	$ 0	0	2,918,900	2,918,900
Shares Outstanding, Ending at May. 31, 2021	0	71,904,028
Equity Balance, Ending at May. 31, 2021	$ 0	$ 719,040	$ 41,150,947	$ (36,790,419)	$ 5,079,568

STATEMENTS OF CASHFLOWS

STATEMENTS OF CASHFLOWS - USD ($)	9 Months Ended
	May 31, 2021	May 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 2,102,105	$ (694,181)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Discount accretion on note payable	0	11,291
Stock based compensation	606,107	98,334
Gain on sale of interest in mineral properties	(3,326,899)	0
Loss on settlement of accrued liability	0	66,335
Depreciation expense	2,327	0
Changes in current assets and liabilities:
Prepaid expenses and other current assets	67,349	(21,454)
Accounts payable and accrued liabilities	(265,712)	(356,648)
Net cash used in operating activities	(814,723)	(896,323)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of interest in mineral properties	3,000,000	0
Purchases of property and equipment	(34,907)	0
Purchases of mineral properties	(212,444)	0
Payment of deposit	(5,120)	0
Net cash used in investing activities	2,747,529	0
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on note payable	0	(107,958)
Payments on advances due to related party	0	(4,000)
Advances from related parties	148,826	100,917
Proceeds from exercise of common stock warrants and options	81,300	475,695
Net cash provided by financing activities	230,126	464,654
NET CHANGE IN CASH AND CASH EQUIVALENTS	2,162,932	(431,669)
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	2,746,451	1,824,546
Cash and Cash Equivalents, at Carrying Value, Ending Balance	4,909,383	1,392,877
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	0	0
Taxes paid	0	0
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued as payment of accrued expenses	92,500	0
Advances from related parties assumed in sale of interest in mineral properties	$ 729,227	$ 0

NOTE 1 - GENERAL

NOTE 1 - GENERAL	9 Months Ended
	May 31, 2021
Notes
NOTE 1 - GENERAL	NOTE 1 – GENERAL 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, for the year ended August 31, 2020, dated November 30, 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 interim financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2020 as reported in our annual report on Form 10-K, have been omitted. Grant Income Grants received from government and other agencies in advance of a specific project are deferred and recognized as other income in the statements of operations in the period they are earned and the related project costs are incurred. For the nine and three months ended May 31, 2021, the Company recognized $150,000 and $0, respectively, of grant income which is presented in other income net of grant related expenses totaling $138,922 and $0, respectively. Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt – Debit with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.

NOTE 2 - MINERAL PROPERTIES AND

NOTE 2 - MINERAL PROPERTIES AND PARTICIPATION IN SUCH MINERAL PROPERTIES	9 Months Ended
	May 31, 2021
Notes
NOTE 2 - MINERAL PROPERTIES AND PARTICIPATION IN SUCH MINERAL PROPERTIES	NOTE 2 – MINERAL PROPERTIES AND PARTICIPATION IN SUCH MINERAL PROPERTIES We are a mining company and substantially all of our business consists of owning and holding a 20% membership interest (being a certificate of interest or participation) in Round Top Mountain Development Company, LLC, a Delaware limited liability company (“Round Top”), the entity that owns the mineral leases and mineral assets. In August 2018, the Company and Morzev Pty. Ltd. (“Morzev”) entered into an agreement (the “2018 Option Agreement”) whereby Morzev was granted the exclusive right to earn and acquire a 70% interest in the Company’s Round Top Project (“Project” or “Round Top” or “Round Top Project”) by financing $10 million of expenditures in connection with the Project, increasable to an 80% interest for an additional $3 million payment to the Company. Morzev began operating as USA Rare Earth, LLC (“USARE”) and in May 2019 notified the Company that it was nominating USARE as the optionee under the terms of the 2018 Option Agreement. In August 2019, the Company and USARE entered into an amended and restated option agreement as further amended on June 29, 2020 (the “2019 Option Agreement” and collectively with the 2018 Option Agreement, the “Option Agreement”), whereby the Company restated its agreement to grant USARE the exclusive right to earn and acquire a 70% interest, increasable to an 80% interest, in the Round Top Project. The 2019 Option Agreement has substantially similar terms to the 2018 Option Agreement. On May 17, 2021, and in accordance with the terms of the Option Agreement, the Company and USARE entered into a contribution agreement (“Contribution Agreement”) whereby the Company and USARE contributed assets to Round Top, a wholly-owned subsidiary of the Company, in exchange for their ownership interests in Round Top, of which the Company now owns membership interests equating to 20% of Round Top and USARE owns membership interests equating to 80% of Round Top. Concurrently therewith, the Company and USARE as the two members entered into a limited liability company agreement (“Operating Agreement”) governing the operations of Round Top which contains customary and industry standard terms as contemplated by the OptionAgreement. USARE will serve as manager of Round Top and Mr. Gorski, on behalf of the Company, will serve as one of the three members of the management committee. In connection with USARE meeting its obligations to acquire a 70% interest in Round Top and exercising its right to an additional 10% interest, the Company received total consideration of approximately $3,728,000, consisting of the $3 million upon exercise of the option and an assumption of approximately $728,000 in advances from related parties, and derecognized 80% of the carrying amount of mineral properties, or approximately $402,000. The resulting gain on sale of interest in mineral properties in the amount of approximately $3,326,000 is included as its own line item in other income (expense). Upon entry into the Contribution Agreement, the Company assigned the following contracts and assets to Round Top in exchange for its 20% membership interest in Round Top: · · · · · and USARE assigned the following assets to Round Top (or the Company, as applicable) for its 80% membership interest in Round Top: · · · · The Operating Agreement provides for the following: Interests Cash Calls multiplied by divided by Management Management Committee Meetings · · · · · · · · · Manager Each member has the right to elect not to contribute fully or not to contribute at all to an adopted Budget. If a member does not contribute fully or at all, the other member has the right to make up some or all of the shortfall. In either case, the ownership interests of the members are recalculated and the non-contributing member is “diluted” on a straight-line basis. The same process is applied if the manager proposes to amend an adopted Budget by more than 15% and the proposal is approved. Distributions or expense to the Company, and the monthly cash call or monthly cash calls will be recovered by USARE solely out of the Company’s proportional interest in such products when sold. Involuntary Resignation – Elimination of Interest August 2010 Mineral Lease On August 17, 2010, the Company executed a mineral 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 mineral lease issued by the Texas General Land Office gives the Company 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 terms of the mineral lease, the Company will pay the State of Texas a total lease bonus of $142,518. The Company paid $44,718 upon the execution of the lease and will pay the remaining $97,800 upon submission of a supplemental plan of operations to conduct mining. Upon sale of any minerals removed from Round Top, the Company will pay the State of Texas a $500,000 minimum advance royalty. Thereafter, if paying quantities of minerals are obtained, the Company 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. If paying quantities have not been obtained, the Company 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 Amount Total Amount September 2, 2020 – 2024 $ 150 $ 134,155 September 2, 2025 – 2029 200 178,873 In August 2020, the Company paid a delay rental to the State of Texas in the amount of $134,155. November 2011 Mineral Lease On November 1, 2011, the Company executed a mineral lease with the State of Texas covering approximately 90 acres of land that is adjacent to the August 2010 Lease. Under the lease, the Company paid the State of Texas a lease bonus of $20,700 upon the execution of the lease. Upon the sale of minerals removed from Round Top, the Company will pay the State of Texas a $50,000 minimum advance royalty. Thereafter, if paying quantities of minerals are obtained, the Company 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. If paying quantities have not been obtained, the Company 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 Amount Total Amount November 1, 2020 – 2024 $ 150 $ 13,500 November 1, 2025 – 2029 200 18,000 In August 2020, the Company paid a delay rental to the State of Texas of $13,500. March 2013 Surface Lease On March 6, 2013, the Company purchased the surface lease at the Round Top Project, known as the West Lease, from the Southwest Wildlife and Range Foundation (since renamed the Rio Grande Foundation) for $500,000 cash and 1,063,830 shares of common stock valued at $500,000. The Company 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, particularly Lake Amistad, a large and well-known fishing lake near Del Rio, Texas. In connection with the January 2019 settlement with the Foundation, the balance was paid off as of August, 2020. The West Lease comprises approximately 54,990 acres. Most importantly, the purchase of the surface lease provides the Company unrestricted surface access for the potential development and mining of the Round Top Project. October 2014 Surface Option and Water Lease On October 29, 2014, the Company announced the execution of 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 necessary for the potential Round Top project mining 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. The Company may exercise the option for all or part of the option acreage at any time during the remaining sixteen-year primary term of the mineral lease. The option can be maintained through annual payments of $10,000. The purchase price will be the appraised value of the surface at the time of option exercise. All annual payments have been made as of the date of this filing. The ground water lease secures the 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 terms include an annual minimum production payment of $5,000 prior to production of water for the operation. After initiation of production, the Company will pay $0.95 per thousand gallons or $20,000 annually, whichever is greater. This lease remains in effect so long as the mineral lease is in effect. The minimum production payment for all fiscal years have been made as of the date of this filing. Assignment of Leases to Round Top In May 2021, these leases, including the rights and payment obligations, were assigned to Round Top.

NOTE 3 - SHAREHOLDERS' EQUITY

NOTE 3 - SHAREHOLDERS' EQUITY	9 Months Ended
	May 31, 2021
Notes
NOTE 3 - SHAREHOLDERS' EQUITY	NOTE 3 – 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 Company, 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. In January 2020, the Company entered into three separate consulting agreements for total consideration of 699,999 shares of common stock (233,333 per agreement). The common stock underlying the agreements had a total value of $448,000, based on the $0.64 quoted market price of the common stock on the date the consulting agreements were reached. The right to receive the common stock is subject to ratable vesting over a 24-month period and at May 31, 2021, 495,833 shares had vested and 87,501 had been issued. The Company recognized approximately $168,000 and $56,000 of compensation expense under these consulting agreements during the nine and three months ended May 31, 2021 and included the expense in general and administrative expenses. The consultants have requested that the Company hold the remaining shares issuable under the consulting agreements in trust to allow the consultants to request their shares as they vest. In October 2020, the Company issued 61,936 shares of common stock to Directors as payment for accrued fees totaling $92,500 earned in June through August 2020. During the quarter ended November 30, 2020, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $52,899 for director’s fees earned during the quarter. The Company issued the related 40,042 shares of common stock in December 2020. During the quarter ended November 30, 2020, the Company granted a total of 53,500 stock options with a fair value of $81,468 on the date of grant to a consultant. The fair value of the options was determined using the Black-Scholes option-pricing model. The weighted average assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.28% (ii) estimated volatility of 208.05% (iii) dividend yield of 0.00% and (iv) expected life of all options of 4.6 years. The Company recognized the full $81,468 as compensation expense during the three months ended November 30, 2020. During the three months ended November 30, 2020, the holders of 70,000 common stock warrants with an exercise price of $0.35 per share, exercised such warrants for total consideration of $24,500. The shares of common stock underlying the warrants were issued to the holders in December 2020. During the three months ended February 28, 2021, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $41,500 for director’s fees earned during the quarter. The Company issued the related 13,266 In December 2020, the Company issued 33,064 shares of common stock to a consultant under a cashless option exercise. In January 2021, the Company issued 136,442 shares of common stock to a former director under a cashless warrant exercise. During the quarter ended February 28, 2021, the Company granted a total of 53,500 stock options with a fair value of $106,821 on the date of grant to a consultant. The fair value of the options was determined using the Black-Scholes option-pricing model. The weighted average assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.28% (ii) estimated volatility of 205.28% (iii) dividend yield of 0.00% and (iv) expected life of all options of 4 years. The Company recognized the full $106,821 as compensation expense during the three months ended February 28, 2021. In April 2021, 120,000 common stock options were exercised by a consultant at an exercise price of $0.30 per option for cash totaling $36,000. In May 2021, 100,000 common stock options and 4,000 common stock warrants were exercised by an investor at exercise prices ranging from $0.10 - $0.20 per option/warrant for cash totaling $20,800. During the quarter ended May 31, 2021, the Company granted a total of 43,500 stock options with a fair value of $105,918 on the date of grant to a consultant. The fair value of the options was determined using the Black-Scholes option-pricing model. The weighted average assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.28% (ii) estimated volatility of 208.05% (iii) dividend yield of 0.00% and (iv) expected life of all options of 4 years. The Company recognized the full $105,918 as compensation expense during the three months ended May 31, 2021. During the three months ended May 31, 2021, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $49,500 for director’s fees earned during the quarter. The Company issued the related 30,037shares of common stock in June 2021. The Company had 71,904,028 shares of common stock outstanding as of May 31, 2021.

NOTE 4 - EARNINGS (LOSS) PER SH

NOTE 4 - EARNINGS (LOSS) PER SHARE	9 Months Ended
	May 31, 2021
Notes
NOTE 4 - EARNINGS (LOSS) PER SHARE	NOTE 4 – EARNINGS (LOSS) PER SHARE Basic and diluted earnings per share for the nine and three months ended May 31, 2021 were calculated as follows: Nine Months Ended Three Months Ended Numerator for both basic and diluted earnings per share: Net income $ 2,102,105 $ 2,918,900 Denominator: Weighted average shares outstanding – basic 71,558,951 71,697,503 Effect of dilutive securities: Options and warrants 1,285,920 1,354,380 Weighted average shares outstanding - diluted 72,844,871 73,051,883 Basic earnings per share $ 0.03 $ 0.04 Diluted earnings per share $ 0.03 $ 0.04 For the nine and three months ended May 31, 2020, all potential shares were anti-dilutive and thus excluded from the diluted loss per share calculation.

NOTE 5 - SUBSEQUENT EVENTS

NOTE 5 - SUBSEQUENT EVENTS	9 Months Ended
	May 31, 2021
Notes
NOTE 5 - SUBSEQUENT EVENTS	NOTE 5 – SUBSEQUENT EVENTS None.

NOTE 1 - GENERAL_ Basis of Pres

NOTE 1 - GENERAL: Basis of Presentation (Policies)	9 Months Ended
	May 31, 2021
Policies
Basis of Presentation	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, for the year ended August 31, 2020, dated November 30, 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 interim financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2020 as reported in our annual report on Form 10-K, have been omitted.

NOTE 1 - GENERAL_ Grant Income

NOTE 1 - GENERAL: Grant Income (Policies)	9 Months Ended
	May 31, 2021
Policies
Grant Income	Grant Income Grants received from government and other agencies in advance of a specific project are deferred and recognized as other income in the statements of operations in the period they are earned and the related project costs are incurred. For the nine and three months ended May 31, 2021, the Company recognized $150,000 and $0, respectively, of grant income which is presented in other income net of grant related expenses totaling $138,922 and $0, respectively.

NOTE 1 - GENERAL_ Recent Accoun

NOTE 1 - GENERAL: Recent Accounting Pronouncements (Policies)	9 Months Ended
	May 31, 2021
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt – Debit with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.

NOTE 4 - EARNINGS (LOSS) PER _2

NOTE 4 - EARNINGS (LOSS) PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Tables)	9 Months Ended
	May 31, 2021
Tables/Schedules
Schedule of Earnings Per Share, Basic and Diluted	Nine Months Ended Three Months Ended Numerator for both basic and diluted earnings per share: Net income $ 2,102,105 $ 2,918,900 Denominator: Weighted average shares outstanding – basic 71,558,951 71,697,503 Effect of dilutive securities: Options and warrants 1,285,920 1,354,380 Weighted average shares outstanding - diluted 72,844,871 73,051,883 Basic earnings per share $ 0.03 $ 0.04 Diluted earnings per share $ 0.03 $ 0.04

NOTE 3 - SHAREHOLDERS' EQUITY (

NOTE 3 - SHAREHOLDERS' EQUITY (Details) - USD ($)	1 Months Ended		3 Months Ended
	Jan. 31, 2021	Dec. 31, 2020	May 31, 2021	Nov. 30, 2020	Aug. 31, 2020
Details
Common Stock, Shares Authorized			100,000,000		100,000,000
Common Stock, Par or Stated Value Per Share			$ 0.01		$ 0.01
Preferred Stock, Shares Authorized			10,000,000		10,000,000
Preferred Stock, Par or Stated Value Per Share			$ 0.001		$ 0.001
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures			53,500	53,500
Fair value of options				$ 81,468
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used				Black-Scholes option-pricing model
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate				0.28%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate				208.05%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate				0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term				4 years 7 months 6 days
Stock Issued During Period, Shares, New Issues	136,442	33,064
Common Stock, Shares, Outstanding			71,904,028		71,323,278

NOTE 4 - EARNINGS (LOSS) PER _3

NOTE 4 - EARNINGS (LOSS) PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2021	May 31, 2020	May 31, 2021	May 31, 2020
Details
NET INCOME (LOSS)	$ 2,918,900	$ (299,440)	$ 2,102,105	$ (694,181)
Weighted Average Number of Shares Outstanding, Basic	71,697,503	57,448,168	71,558,951	58,662,191
Options and warrants	$ 1,354,380		$ 1,285,920
Weighted Average Number of Shares Outstanding, Diluted	73,051,883	57,448,168	72,844,871	58,662,191
Earnings Per Share, Basic	$ 0.04	$ (0.01)	$ 0.03	$ (0.01)
Earnings Per Share, Diluted	$ 0.04	$ (0.01)	$ 0.03	$ (0.01)