Texas Mineral Resources (TMRC) 10-Q 16 Jul 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	May 31, 2018	Jun. 20, 2018
Document And Entity Information
Entity Registrant Name	Texas Mineral Resources Corp.
Entity Central Index Key	1,445,942
Document Type	10-Q
Document Period End Date	May 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018
Entity Common Stock, Shares Outstanding		44,941,532

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	May 31, 2018	Aug. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 4,956	$ 1,080
Prepaid expenses and other current assets	5,834	6,667
Total current assets	10,790	7,747
Property and equipment, net	922	5,421
Mineral properties	358,594	358,594
Deposits	24,000	24,000
TOTAL ASSETS	394,306	395,762
CURRENT LIABILITIES
Accounts payable and accrued liabilities	1,092,808	916,468
Accounts payable - related party	77,000	87,000
Notes payable - related party	321,415	246,165
Current portion of note payable	260,387	260,387
Total current liabilities	1,751,610	1,510,020
Total liabilities	1,751,610	1,510,020
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' DEFICIT
Common stock, par value $0.01; 100,000,000 shares authorized, 44,941,533 and 44,941,533 shares issued and outstanding as of May 31, 2018 and August 31, 2017, respectively	449,416	449,416
Additional paid-in capital	33,133,834	33,068,309
Accumulated deficit	(34,940,554)	(34,631,983)
Total shareholders' deficit	(1,357,304)	(1,114,258)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$ 394,306	$ 395,762

BALANCE SHEETS (Unaudited) (Par

BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	May 31, 2018	Aug. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 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 value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	44,941,533	44,941,533
Common stock, shares outstanding	44,941,532	44,941,532

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
OPERATING EXPENSES
Exploration costs	$ 792		$ 13,042	$ 9,378
General and administrative expenses	61,955	$ 139,047	226,193	362,199
Total operating expenses	62,747	139,047	239,235	371,577
LOSS FROM OPERATIONS	(62,747)	(139,047)	(239,235)	(371,577)
OTHER INCOME (EXPENSE)
Interest and other income		1		2
Interest and other expense	(22,261)	(13,274)	(69,336)	(37,980)
Total other income (expense)	(22,261)	(13,273)	(69,336)	(37,978)
NET LOSS	$ (85,008)	$ (152,320)	$ (308,571)	$ (409,555)
Net loss per share:
Basic and diluted net loss per share			$ 0.01	$ .01
Weighted average shares outstanding:
Basic and diluted	44,941,533	44,941,533	44,941,533	44,941,533

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	May 31, 2018	May 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (308,571)	$ (409,555)
Adjustments to reconcile net loss to net cash used in operating activities:
Discount on notes payable		23,650
Depreciation expense	4,498	8,256
Cashless compensation for related party advances	53,474
Stock based compensation	12,051	12,285
Changes in current assets and liabilities:
Prepaid expenses and other assets	834	711
Accounts payable and accrued expenses	176,340	79,363
Accounts payable related party	(10,000)	198,452
Net cash used in operating activities	(71,374)	(86,838)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable - related party	75,250	87,500
Net cash provided by financing activities	75,250	87,500
NET CHANGE IN CASH AND CASH EQUIVALENTS	3,876	662
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,080	5,164
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 4,956	$ 5,826

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	May 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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, for the year ended August 31, 2017, dated December 14, 2017 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, 2017 as reported in our annual report on Form 10-K, have been omitted. The financial statements have been prepared on a going concern basis which assumes the Company will not be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses since inception resulting in an accumulated deficit of approximately $34,940,554 as of May 31, 2018 and further losses are anticipated in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and or private placement of common stock. On March 14, 2016, the Company filed a Certificate of Amendment with the Secretary of State of the State of Delaware to amend its Certificate of Incorporation to change the name of the Company from “Texas Rare Earth Resources Corp” to “Texas Mineral Resources Corp”. The amendment was effective at 9:00 am EST on March 21, 2016. The Certificate of Amendment did not make any other amendments to the Company’s Certificate of Incorporation. Reclassification of prior year balances For comparability, certain prior period amounts have been reclassified, where appropriate, to conform to the financial statement presentation as of May 31, 2018.

MINERAL PROPERTIES

MINERAL PROPERTIES	9 Months Ended
	May 31, 2018
Mineral Industries Disclosures [Abstract]
MINERAL PROPERTIES	NOTE 2 – 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 (61/4%) 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 September 2, 2015 – 2019 $ 75 $ 67,077 September 2, 2020 – 2024 $ 150 $ 134,155 September 2, 2025 – 2029 $ 200 $ 178,873 In August 2017, 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 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 November 1, 2015 – 2019 $ 75 $ 6,750 November 1, 2020 – 2024 $ 150 $ 13,500 November 1, 2025 – 2029 $ 200 $ 18,000 In October 2017, 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 Wildlife and Range 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. 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. As of the date of this filing the $45,000 payments due in June 2016, 2017 and June 2018 have not been paid; consequently, we have expensed the value of the West Lease during fiscal 2017. We fully intend to continue with the evaluation of the mineral potential of the property, to ultimately mine the property, and to bring the lease current when funds are available. Expensing the value of the West Lease does not restrict our access to the mineral leases. October 2014 Surface Option In October 2014, we executed an agreement 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 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, which have not been paid for 2017 or 2018 as of the date of this filing. The purchase price will be the appraised value of the surface at the time of exercising the option. 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, which have not been paid for 2017 or 2018, as of the date of this filing. 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 Pagnotti Enterprises Inc. Memorandum of Understanding On June 28, 2016 TMRC executed a Memorandum of understanding with Pagnotti Enterprises Inc. (“PEI”) of Wilkes Barre, Pennsylvania, owners of the Jeddo Coal Co., whereby under specified terms TMRC could lease one or more of Jeddo’s deposits located in the anthracite region of northeast Pennsylvania. Research by the Department of Energy (DOE) has shown that these coal deposits and the sandstones and siltstones immediately associated with them contain anomalously high values of rare earth and on particular interest, Scandium. The DOE research to date has indicated that the rare earth can be efficiently extracted from pulverized rock using ammonium sulfate as the lixiviant. TMRC is in the process of preparing an application for a federal grant to design and construct a continuous ion exchange/continuous ion chromatography (CIX/CIC) pilot plant to be delivered to a designated project area in the Appalachian coal province. TMRC and its co-applicants, K-Tech, Inventure Renewables, of Tuscaloosa, Alabama and Penn State University are proposing to plan, develop, design and install the CIX/CIC pilot plant at one of the Jeddo Coal properties. The grant was awarded in March 2017 to the consortium consisting of Inventure Renewables, Penn State, K-Tech and TMRC with Inventure being the principal investigator in the consortium. Funding began in September 2017. Under the terms of the Memorandum of Understanding (MOU) signed 28 June 2016, TMRC had a six-month term to perform the necessary due diligence and to technically and economically evaluate the properties. Upon execution of the MOU TMRC and PEI had six months to draft and execute a formal lease agreement containing all the standard terms of mining lease agreements. Upon execution of a lease, TMRC will be obligated to pay a $5,000 per month rental or a 12% royalty whichever is greater. As of the date of this filing, no lease has been executed.

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	May 31, 2018
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 3 – NOTES PAYABLE As part of our surface lease with the Rio Grande Foundation (formerly referred to as the Southwest Wildlife Foundation), the Company recorded a note payable for an amount for the initial $45,000 due upon signing of lease and the nine (9) future payments due of $45,000 which has been recorded at its present value discounted with an imputed interest rate of 5% for a total note payable of $364,852. As of the date of this filing, we have not paid the June 2016, 2017 or June 2018 installment of our surface lease, in the amount of $45,000 each, to the Southwest Wildlife Foundation. As a result, the full amount of the note payable has been classified as currently due. The note payable balance as of May 31, 2018 is $260,000. The Company has also accrued interest expense as of May 31, 2018 of $44,000. This unpaid interest is included in accrued liabilities. The Foundation has not given notice of default or made any demand for payment as of the date of this filing. However, based upon the Company being in default on the Note Payable there is no guarantee that the Foundation will allow the Company to bring the lease payments current without requiring the Company to provided additional consideration to the Foundation. Consequently, since the Company cannot be guaranteed the ability to utilize the lease due to its current default status, the Company has written off the value of this lease ($1,394,852) as of August 31, 2017. The Company intends to continue with the evaluation of the mineral potential of the property, to ultimately mine the property, and to bring this note payable and its accrued interest current when the funds are available. Related Party Notes Payable and Advances On July 1, 2016 the Company received two loans for $2,500 each from two directors of the Company. The loans are non-interest accruing, unsecured and due upon demand. As additional consideration for the loans, we issued 5,000 common stock purchase warrants to each individual. The warrants have an exercise price of $0.10 and term of five years. The warrants had a fair value of $1,185 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 1.00% (ii) estimated volatility of 185% (iii) dividend yield of 0.00% and (iv) expected life of the warrants of five years. The notes payable balance as of May 31, 2018 and August 31, 2017 was a total of $5,000. The value of the warrants was expensed as interest expense at the time of issuance due to no stated term on the advances. On September 1, 2016, the Company entered into five loans totaling $71,500 from five directors of the Company. The loans were due March 1, 2017, are non-interest bearing, and unsecured. As of this filing the loans are in default and due upon demand. As additional consideration for the loans, we issued in total 147,000 common stock purchase warrants. The warrants have an exercise price of $0.10 and term of five years. The loans have a relative fair value of $57,414 and the warrants have a relative fair value of $14,086 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 1.180% (ii) estimated volatility of 245% (iii) dividend yield of 0.00% and (iv) expected life of the warrants of five years. The notes payable balance as of May 31, 2018 and August 31, 2017 was $71,500. The value of the warrant was amortized to interest expense over the term of the note payable. On November 1, 2016 the Company entered into two loans for $4,000 and $1,000 from two directors of the Company. The loans are non-interest bearing, unsecured and due upon demand. As additional consideration for the loans, we issued 8,000 and 2,000 common stock purchase warrants to each individual. The warrants have an exercise price of $0.10 and term of five years. The warrants had a fair value of $1,057 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 1.30% (ii) estimated volatility of 181% (iii) dividend yield of 0.00% and (iv) expected life of the warrants of five years. The notes payable balance as of May 31, 2018 and August 31, 2017 was $5,000. The value of the warrants was expensed as interest expense at the time of issuance due to no stated term on the advance. On December 12, 2016, the Company entered into a loan for $15,000 a director of the Company. The loan is due June 12, 2017, is non-interest accruing, and unsecured. As of this filing the loan is in default and due upon demand. As additional consideration for the loan, we issued 60,000 common stock purchase warrants to the individual. The warrants have an exercise price of $0.10 and term of five years. The loan has a relative fair value of $10,437 and the warrants have a relative fair value of $4,563 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 1.90% (ii) estimated volatility of 241% (iii) dividend yield of 0.00% and (iv) expected life of the warrants of five years. The notes payable balance as of May 31, 2018 and August 31, 2017 was $15,000. The value of the warrant was amortized to interest expense over the term of the note payable. On January 12, 2017 the Company entered into two loans totaling $20,000 from a director and an officer of the Company. The loans are due July 12, 2017, are non-interest accruing, and unsecured. As of this filing the loans are in default and due upon demand. As additional consideration for the loans, we issued 40,000 common stock purchase warrants to each individual. The warrants have an exercise price of $0.10 and term of five years. The loans have a relative fair value of $13,542 and the warrants have a relative fair value of $6,458 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 1.87% (ii) estimated volatility of 240% (iii) dividend yield of 0.00% and (iv) expected life of the warrants of five years. The notes payable balance as of May 31, 2018 and August 31, 2017 was $20,000. The value of the warrant was amortized to interest expense over the term of the note payable. During the three months ended May 31, 2017 the Company entered into eight loans totaling $47,500 from two directors of the Company. The loans are non-interest accruing, unsecured and due upon demand. As additional consideration for the loans, we issued in total 190,000 common stock purchase warrants. The warrants have an exercise price of $0.17 - $0.21 and a term of five years. The warrants had a fair value of $39,557 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 1.75% (ii) estimated volatility of 234% (iii) dividend yield of 0.00% and (iv) expected life of the warrants of five years. The notes payable balance as of May 31, 2018 and August 31, 2017 was $47,500. The value of the warrants was expensed as interest expense at the time of issuance due to no stated term on the advance. During the three months ended August 31, 2017 the Company entered into seven loans totaling $82,165 from two directors of the Company. The loans are non-interest accruing, unsecured and due upon demand. As additional consideration for the loans, we issued in total 328,660 common stock purchase warrants. The warrants have an exercise price of $0.20 - $0.23 and a term of five years. The warrants have a fair value of $65,137 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 1.75% (ii) estimated volatility of 169% (iii) dividend yield of 0.00% and (iv) expected life of the warrants of five years. The notes payable balance as of May 31, 2018 and August 31, 2017 was $82,165. The value of the warrants was expensed as interest expense at the time of issuance due to no stated term on the advance. During the three months ended November 30, 2017 the Company received two advances totaling $16,750 from a director and an officer of the Company. The loans are non-interest accruing, unsecured and due upon demand. As additional consideration for the loans, we issued a total of 67,000 common stock purchase warrants. The warrants have an exercise price of $0.21 - 0.22 and a term of five years. The warrants have a fair value of $12,518 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 2.88% (ii) estimated volatility of 122% (iii) dividend yield of 0.00% and (iv) expected life of the warrants of five years. The note payable balance as of May 31, 2018 was $16,750. The value of the warrants was expensed as interest expense at the time of issuance due to no stated term on the advance. During the three months ended February 28, 2018 the Company received five advances totaling $34,500 from two directors, one of whom is also an officer of the Company. The loans are non-interest accruing, unsecured and due upon demand. As additional consideration for the loans, we issued a total of 138,000 common stock purchase warrants. The warrants have an exercise price of $0.15 - 0.21 and a term of five years. The warrants have a fair value of $24,520 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 2.88% (ii) estimated volatility of 122% (iii) dividend yield of 0.00% and (iv) expected life of the warrants of five years. The note payable balance as of May 31, 2018 was $34,500. The value of the warrants was expensed as interest expense at the time of issuance due to no stated term on the advance. During the three months ended May 31, 2018 the Company received four advances totaling $24,000 from a director. The loans are non-interest accruing, unsecured and due upon demand. As additional consideration for the loans, we issued a total of 96,000 common stock purchase warrants. The warrants have an exercise price of $0.17 - 0.19 and a term of five years. The warrants have a fair value of $16,436 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 2.88% (ii) estimated volatility of 224% (iii) dividend yield of 0.00% and (iv) expected life of the warrants of five years. The note payable balance as of May 31, 2018 was $24,000. The value of the warrants was expensed as interest expense at the time of issuance due to no stated term on the advance.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	May 31, 2018
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 4 – 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. During the nine months ended May 31, 2018, we recognized approximately $12,051 in stock compensation expense for 90,000 stock options issued to outside consultants for services and approximately $53,000 in interest expense for warrants issued to directors related to advances, one of whom is also an officer of the Company. We had 44,941,533 shares of our common stock outstanding as of May 31, 2018.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	May 31, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 5 – RELATED PARTY TRANSACTIONS The Company has received advances from certain Directors and Officers. The advances totaled approximately $321,400 as of May 31, 2018. The Company rents office space on a month to month basis of $1,600 from a former director. This space is currently subleased to a tenant. The Company has historically paid the CEO of a consulting company a monthly consulting fee and stock option grants of 10,000 options per month. As of May 31, 2018 the Company owes the consulting firm $77,000. During the nine months ended May 31, 2018, we recognized approximately $12,051 in stock compensation expense for 90,000 stock options issued to outside consultants for services and approximately $53,000 in interest expense for warrants issued to directors related to advances, one of whom is also an officer of the Company.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	May 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 6 – SUBSEQUENT EVENTS In June, 2018, Mr. Mathers, our CFO, was granted 500,000 options to purchase the Registrant’s shares of common stock, vesting immediately with a term of 10 years and at an exercise price of $0.19. These options will be valued using the Black-Scholes pricing model in the quarter ending August 31, 2018.

MINERAL PROPERTIES (Tables)

MINERAL PROPERTIES (Tables)	9 Months Ended
	May 31, 2018
Mineral Industries Disclosures [Abstract]
Schedule of future minimum lease payments	September 2011 Lease 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 September 2, 2015 – 2019 $ 75 $ 67,077 September 2, 2020 – 2024 $ 150 $ 134,155 September 2, 2025 – 2029 $ 200 $ 178,873 November 2011 Lease 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 November 1, 2015 – 2019 $ 75 $ 6,750 November 1, 2020 – 2024 $ 150 $ 13,500 November 1, 2025 – 2029 $ 200 $ 18,000

BASIS OF PRESENTATION (Details

BASIS OF PRESENTATION (Details Narrative) - USD ($)	May 31, 2018	Aug. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ (34,940,554)	$ (34,631,983)

MINERAL PROPERTIES (Details Nar

MINERAL PROPERTIES (Details Narrative)	Sep. 02, 2011USD ($)a	Oct. 31, 2017USD ($)	Aug. 31, 2017USD ($)	Jun. 28, 2016USD ($)	Oct. 31, 2014USD ($)aMiles$ / gal	Mar. 06, 2013USD ($)ashares	Nov. 01, 2011USD ($)a	Jun. 01, 2018USD ($)	Jun. 01, 2017USD ($)	Jun. 01, 2016USD ($)
Pagnotti Enterprises - MOU [Member]
Periodic lease payment				$ 5,000
Royalty percentage				12.00%
Texas General Land Office - Hudspeth County, TX [Member] | September 2011 Mineral Properties Lease [Member]
Mining lease - acres | a	860
Lease bonus	$ 142,518
Lease bonus paid	44,718
Lease bonus due upon filing of supplemental plan of operations to conduct mining	97,800
Minimum advance royalty due upon sale of minerals	$ 500,000
Production royalty of market value of uranium and other fissionable materials removed	8.00%
Production royalty of market value of other minerals removed	6.25%
Payment of delay rental			$ 67,077
Texas General Land Office - Hudspeth County, TX [Member] | October 2014 Surface Option - Water Lease [Member]
Ground water lease - acres | a					13,120
Distance from project mine | Miles					4
Annual minimum production payment					$ 5,000
Production payment, amount per thousand gallons | $ / gal					0.95
Production payment, annual amount					$ 20,000
Texas General Land Office - Hudspeth County, TX [Member] | October 2014 Surface Option [Member]
Surface rights - acres | a					5,670
Periodic option annual payment due					$ 10,000
State of Texas - Hudspeth County, TX [Member] | November 2011 Mineral Properties Lease [Member]
Mining lease - acres | a							90
Lease bonus paid							$ 20,700
Minimum advance royalty due upon sale of minerals							$ 50,000
Production royalty of market value of uranium and other fissionable materials removed							8.00%
Production royalty of market value of other minerals removed							6.25%
Payment of delay rental		$ 6,750
Southwest Range and Wildlife Foundation, Inc. [Member] | March 2013 Surface Lease [Member]
Surface rights - acres | a						54,990
Periodic payment for conservation efforts						$ 45,000
Term of periodic payment for conservation efforts						10 years
Cash paid for lease assignment						$ 500,000
Shares issued for lease | shares						1,063,830
Lease payments payable								$ 45,000	$ 45,000	$ 45,000

MINERAL PROPERTIES (Details)

MINERAL PROPERTIES (Details)	Aug. 31, 2017USD ($)
September 2, 2015 - 2019 [Member]
Per Acre Amount	$ 75
Total Lease Amount	67,077
September 2, 2020 - 2024 [Member]
Per Acre Amount	150
Total Lease Amount	134,155
September 2, 2025 - 2029 [Member]
Per Acre Amount	200
Total Lease Amount	178,873
November 1, 2015 - 2019 [Member]
Per Acre Amount	75
Total Lease Amount	6,750
November 1, 2020 - 2024 [Member]
Per Acre Amount	150
Total Lease Amount	13,500
November 1, 2025 - 2029 [Member]
Per Acre Amount	200
Total Lease Amount	$ 18,000

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative)

Jan. 12, 2017USD ($)$ / sharesshares

Dec. 12, 2016USD ($)$ / sharesshares

Nov. 01, 2016USD ($)$ / sharesshares

Sep. 02, 2016USD ($)$ / sharesshares

Jul. 01, 2016USD ($)$ / sharesshares

Mar. 06, 2013USD ($)Number

May 31, 2018USD ($)$ / sharesshares

Feb. 28, 2018USD ($)$ / sharesshares

Nov. 30, 2017USD ($)$ / sharesshares

Aug. 31, 2017USD ($)$ / sharesshares

May 31, 2017USD ($)$ / sharesshares

May 31, 2017USD ($)$ / shares

Aug. 31, 2017USD ($)$ / shares

Debt Instrument [Line Items]

Current portion of note payable

$ 260,387

$ 260,387

$ 260,387

Amortization of debt discount

$ 23,650

Impairment of mineral properties

1,394,852

Foundation Lease Note Payable [Member]

Debt Instrument [Line Items]

Periodic payment

$ 45,000

Number of payments | Number

9

Imputed interest rate

5.00%

Note payable face amount

$ 364,852

Current portion of note payable

260,000

Accrued interest payable

44,000

Amount of lease payment in default

45,000

Director Loans 7/1/2016 [Member]

Debt Instrument [Line Items]

Number of loans

2

Number of directors

2

Note payable face amount

$ 2,500

Notes payable - related party, net of discounts

5,000

5,000

5,000

Common stock warrants granted | shares

5,000

Warrants, exercise price | $ / shares

$ 0.10

Warrant term

5 years

Fair value of warrants

$ 1,185

Expected life

5 years

Expected volatility

185.00%

Risk-free interest rate

1.00%

Expected dividend yield

0.00%

Director Loans 9/1/2016 [Member]

Debt Instrument [Line Items]

Number of loans

5

Number of directors

5

Note payable face amount

$ 71,500

Notes payable - related party, net of discounts

71,500

71,500

71,500

Common stock warrants granted | shares

147,000

Warrants, exercise price | $ / shares

$ 0.10

Warrant term

5 years

Fair value of debt

$ 57,414

Fair value of warrants

$ 14,086

Expected life

5 years

Expected volatility

245.00%

Risk-free interest rate

1.18%

Expected dividend yield

0.00%

Director Loan 11/1/2016 #1 [Member]

Debt Instrument [Line Items]

Note payable face amount

$ 4,000

Common stock warrants granted | shares

8,000

Director Loan 11/1/2016 #2 [Member]

Debt Instrument [Line Items]

Note payable face amount

$ 1,000

Common stock warrants granted | shares

2,000

Director Loans 11/1/2016 [Member]

Debt Instrument [Line Items]

Number of loans

2

Number of directors

2

Notes payable - related party, net of discounts

5,000

5,000

5,000

Warrants, exercise price | $ / shares

$ 0.10

Warrant term

5 years

Fair value of warrants

$ 1,057

Expected life

5 years

Expected volatility

181.00%

Risk-free interest rate

1.30%

Expected dividend yield

0.00%

Director Loan 12/12/2016 [Member]

Debt Instrument [Line Items]

Note payable face amount

$ 15,000

Notes payable - related party, net of discounts

15,000

15,000

15,000

Maturity date

Jun. 12, 2017

Common stock warrants granted | shares

60,000

Warrants, exercise price | $ / shares

$ 0.10

Warrant term

5 years

Fair value of debt

$ 10,467

Fair value of warrants

$ 4,563

Expected life

5 years

Expected volatility

241.00%

Risk-free interest rate

1.90%

Expected dividend yield

0.00%

Director and Officer Loans 1/12/2017 [Member]

Debt Instrument [Line Items]

Number of loans

2

Note payable face amount

$ 20,000

Notes payable - related party, net of discounts

20,000

20,000

20,000

Maturity date

Jul. 12, 2017

Common stock warrants granted | shares

40,000

Warrants, exercise price | $ / shares

$ 0.10

Warrant term

5 years

Fair value of debt

$ 13,542

Fair value of warrants

$ 6,458

Expected life

5 years

Expected volatility

240.00%

Risk-free interest rate

1.87%

Expected dividend yield

0.00%

Director Loans Qtr 5/31/2017 [Member]

Debt Instrument [Line Items]

Number of loans

8

8

Number of directors

2

2

Note payable face amount

$ 47,500

$ 47,500

Notes payable - related party, net of discounts

47,500

$ 47,500

$ 47,500

Common stock warrants granted | shares

190,000

Warrant term

5 years

Fair value of warrants

$ 39,557

$ 39,557

Expected life

5 years

Expected volatility

234.00%

Risk-free interest rate

1.75%

Expected dividend yield

0.00%

Director Loans Qtr 5/31/2017 [Member] | Lower Range [Member]

Debt Instrument [Line Items]

Warrants, exercise price | $ / shares

$ 0.17

$ 0.17

Director Loans Qtr 5/31/2017 [Member] | Upper Range [Member]

Debt Instrument [Line Items]

Warrants, exercise price | $ / shares

$ 0.21

$ 0.21

Director Loans Qtr 8/31/2017 [Member]

Debt Instrument [Line Items]

Number of loans

7

7

Number of directors

2

2

Note payable face amount

$ 82,165

$ 82,165

Notes payable - related party, net of discounts

$ 82,165

$ 82,165

82,165

Common stock warrants granted | shares

328,660

Warrant term

5 years

Fair value of warrants

$ 65,137

$ 65,137

Expected life

5 years

Expected volatility

169.00%

Risk-free interest rate

1.75%

Expected dividend yield

0.00%

Director Loans Qtr 8/31/2017 [Member] | Lower Range [Member]

Debt Instrument [Line Items]

Warrants, exercise price | $ / shares

$ 0.20

$ 0.20

Director Loans Qtr 8/31/2017 [Member] | Upper Range [Member]

Debt Instrument [Line Items]

Warrants, exercise price | $ / shares

$ 0.23

$ 0.23

Advances - Director and Officer [Member]

Debt Instrument [Line Items]

Number of loans

5

Number of directors

2

Note payable face amount

$ 34,500

Notes payable - related party, net of discounts

34,500

Common stock warrants granted | shares

138,000

Warrant term

5 years

Expected life

5 years

Expected volatility

122.00%

Risk-free interest rate

2.88%

Expected dividend yield

0.00%

Advances - Director and Officer [Member] | Lower Range [Member]

Debt Instrument [Line Items]

Warrants, exercise price | $ / shares

$ 0.15

Fair value of warrants

$ 24,520

Advances - Director and Officer [Member] | Upper Range [Member]

Debt Instrument [Line Items]

Warrants, exercise price | $ / shares

$ .21

Advances - Director and Officer [Member]

Debt Instrument [Line Items]

Number of loans

2

Note payable face amount

$ 16,750

Notes payable - related party, net of discounts

$ 16,750

$ 16,750

Common stock warrants granted | shares

67,000

Warrant term

5 years

Fair value of warrants

$ 12,518

Expected life

5 years

Expected volatility

122.00%

Risk-free interest rate

2.88%

Expected dividend yield

0.00%

Advances - Director and Officer [Member] | Lower Range [Member]

Debt Instrument [Line Items]

Warrants, exercise price | $ / shares

$ 0.21

Advances - Director and Officer [Member] | Upper Range [Member]

Debt Instrument [Line Items]

Warrants, exercise price | $ / shares

$ 0.22

Advances - Director [Member]

Debt Instrument [Line Items]

Number of loans

4

Note payable face amount

$ 24,000

Notes payable - related party, net of discounts

$ 24,000

Common stock warrants granted | shares

96,000

Warrant term

5 years

Fair value of warrants

$ 16,436

Expected life

5 years

Expected volatility

224.00%

Risk-free interest rate

2.88%

Expected dividend yield

0.00%

Advances - Director [Member] | Lower Range [Member]

Debt Instrument [Line Items]

Warrants, exercise price | $ / shares

$ .17

Advances - Director [Member] | Upper Range [Member]

Debt Instrument [Line Items]

Warrants, exercise price | $ / shares

$ .19

SHAREHOLDERS' EQUITY (Details N

SHAREHOLDERS' EQUITY (Details Narrative) - USD ($)	9 Months Ended
	May 31, 2018	May 31, 2017	Aug. 31, 2017
Common stock, shares authorized	100,000,000		100,000,000
Common stock, par value	$ 0.01		$ 0.01
Preferred stock, shares authorized	10,000,000		10,000,000
Preferred stock, par value	$ 0.001		$ 0.001
Common stock, shares outstanding	44,941,532		44,941,532
Stock based compensation - options	$ 12,051	$ 12,285
Interest expense - related party	53,000
Consultant [Member]
Stock based compensation - options	$ 12,051
Stock options issued to outside consultant (shares)	90,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	May 31, 2018	May 31, 2018	Aug. 31, 2017
Advances - related party	$ 321,415	$ 321,415	$ 246,165
Director [Member]
Monthly rent paid to director		1,600
Chief Executive Officer of Consulting Company [Member]
Stock options granted (shares)	10,000
Due to related party	$ 77,000	$ 77,000

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Chief Financial Officer [Member]	1 Months Ended
	Jun. 30, 2018$ / sharesshares
Stock options granted (shares) | shares	500,000
Term of stock options	10 years
Exercise price of stock options | $ / shares	$ .19