Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Hunt Mining Corp. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 63,588,798 | |
Amendment Flag | false | |
Entity Central Index Key | 1,551,206 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash | $ 667,125 | $ 108,272 |
Accounts receivable | 901,686 | 126,453 |
Prepaid expenses | 8,423 | 17,593 |
Inventory | 581,324 | |
Total Current Assets | 2,158,558 | 252,318 |
NON-CURRENT ASSETS: | ||
Mineral Properties | 438,062 | 438,062 |
Property, plant and equipment | 4,382,212 | 4,934,783 |
Performance bond | 410,716 | 381,355 |
Other deposit | 63,891 | 64,610 |
Total Non-Current Assets: | 5,294,881 | 5,818,810 |
TOTAL ASSETS: | 7,453,439 | 6,071,128 |
CURRENT LIABILITIES: | ||
Bank indebtedness | 50,000 | |
Accounts payable and accrued liabilities | 5,564,071 | 3,087,611 |
Purchase price payable | 1,500,000 | |
Deferred advances | 190,269 | |
Interest payable | 72,243 | 53,293 |
Transaction taxes payable | 129,155 | 118,667 |
Loan payable | 3,373,960 | 3,471,311 |
Total Current Liabilities: | 9,189,429 | 8,421,151 |
NON-CURRENT LIABILITIES: | ||
Asset retirement obligation | 756,619 | 721,695 |
Contingent liability | 250,000 | 250,000 |
Total Non-Current Liabilities: | 1,006,619 | 971,695 |
TOTAL LIABILITIES: | 10,196,048 | 9,392,846 |
STOCKHOLDERS' DEFICIENCY: | ||
Capital stock: Authorized- Unlimited No Par Value Issued and outstanding - 63,588,798 common shares (December 31, 2016 - 63,588,798 common shares) | 24,695,186 | 24,695,186 |
Additional paid in capital | 9,661,992 | 9,661,992 |
Deficit | (37,038,513) | (37,649,570) |
Accumulated other comprehensive loss | (61,274) | (29,326) |
Total Stockholders' Deficiency: | (2,742,609) | (3,321,718) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY: | $ 7,453,439 | $ 6,071,128 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parentheticals) | Jun. 30, 2017shares |
Capital stock: Issued | 63,588,798 |
Capital stock: Outstanding | 63,588,798 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING EXPENSES: | ||||
Professional fees | $ 162,836 | $ 262,832 | $ 281,304 | $ 290,173 |
Directors fees | 751 | 1,504 | ||
Exploration expenses | 282,682 | 598,832 | 372,750 | 704,380 |
Travel expenses | 90,603 | 88,063 | 149,664 | 139,131 |
Administrative and office expenses | 74,316 | 166,713 | 199,755 | 238,022 |
Payroll expenses | 105,106 | 168,141 | 177,722 | 287,927 |
Share based compensation | 256,484 | 256,484 | ||
Interest expense | 131,264 | 39,316 | 188,909 | 48,932 |
Banking charges | 19,730 | 10,757 | 69,488 | 11,352 |
Depreciation | 300,805 | 27,214 | 597,338 | 29,113 |
Total operating expenses: | 1,168,093 | 1,618,352 | 2,038,434 | 2,005,514 |
OTHER INCOME/(EXPENSE): | ||||
Silver recovery | 2,650,650 | 2,859,746 | ||
Interest income | 3,047 | 3,669 | 7,836 | 7,447 |
Miscellaneous expense | 5,217 | 5,217 | ||
Transaction taxes | (17,830) | (20,011) | (17,830) | (35,103) |
Gain (loss) on foreign exchange | (175,586) | (75,008) | (162,805) | (110,888) |
Contingent liability accrual | (7,749) | 58,189 | (7,749) | 3,568 |
Accretion expense | (17,462) | (34,924) | ||
Total other income (expense): | 2,440,287 | (33,161) | 2,649,491 | (134,976) |
NET INCOME (LOSS) FOR THE PERIOD | 1,272,194 | (1,651,513) | 611,057 | (2,140,490) |
Other comprehensive income, net of tax: | ||||
Change in value of performance bond | 34,080 | 31,012 | 29,361 | 70,227 |
Foreign currency translation adjustment | (29,387) | 161,407 | (61,309) | 213,336 |
TOTAL NET INCOME (LOSS) AND COMPREHENSIVE LOSS FOR THE PERIOD: | $ 1,276,887 | $ (1,459,094) | $ 579,109 | $ (1,856,927) |
Weighted average shares outstanding - basic (in Shares) | 63,588,798 | 62,150,298 | 63,588,798 | 63,027,776 |
Weighted average shares outstanding - diluted (in Shares) | 114,963,798 | 62,150,298 | 114,963,798 | 63,027,776 |
NET INCOME (LOSS) PER SHARE - BASIC: (in Dollars per share) | $ 0.02 | $ (0.02) | $ 0.01 | $ (0.03) |
NET INCOME (LOSS) PER SHARE - DILUTED: (in Dollars per share) | $ 0.01 | $ (0.02) | $ 0.01 | $ (0.03) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Deficiency (Unaudited) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Balance | $ (3,321,718) | $ (594,346) | $ (594,346) |
Net Income (Loss) | 611,057 | (2,140,490) | (3,109,074) |
Other comprehensive loss | (31,948) | (118,526) | |
Capital stock issued, net | 243,744 | ||
Share based compensation | 256,484 | ||
Balance | (2,742,609) | (3,321,718) | |
Common Stock [Member] | |||
Balance | 24,695,186 | 24,560,711 | 24,560,711 |
Capital stock issued, net | 243,744 | ||
Portion of units attributable to warrants issued | (109,269) | ||
Balance | 24,695,186 | 24,695,186 | |
Retained Earnings [Member] | |||
Balance | (37,649,570) | (34,540,496) | (34,540,496) |
Net Income (Loss) | 611,057 | (3,109,074) | |
Balance | (37,038,513) | (37,649,570) | |
AOCI Attributable to Parent [Member] | |||
Balance | (29,326) | 89,200 | 89,200 |
Other comprehensive loss | (31,948) | (118,526) | |
Balance | (61,274) | (29,326) | |
Additional Paid-in Capital [Member] | |||
Balance | 9,661,992 | $ 9,296,239 | 9,296,239 |
Portion of units attributable to warrants issued | 109,269 | ||
Share based compensation | 256,484 | ||
Balance | $ 9,661,992 | $ 9,661,992 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 11, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income (loss) | $ 611,057 | $ (2,140,490) | $ (3,109,074) | |||
Items not affecting cash | ||||||
Depreciation | $ 300,805 | $ 27,214 | 597,338 | 29,113 | ||
Gain on foreign exchange | 719 | |||||
Share based compensation | 256,484 | 256,484 | ||||
Accretion | 17,462 | 34,924 | ||||
Net change in non-cash working capital items | ||||||
Increase (decrease) in accounts receivable | (775,233) | 6,648 | ||||
Decrease (increase) in prepaid expenses | 9,468 | (2,445) | ||||
Increase in inventory | (581,324) | |||||
Increase in accounts payable and accrued liabilities | 2,201,129 | 1,293,178 | ||||
Increase in interest payable | 18,950 | |||||
Increase in transaction taxes payable | 10,488 | 23,574 | ||||
2,127,516 | (533,938) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchases of property and equipment | (1,544,767) | (1,069,288) | ||||
Purchases of mineral property | (438,062) | |||||
(1,544,767) | (1,507,350) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Proceeds from bank indebtedness | 50,000 | 19,558 | ||||
Proceeds from loan | $ 500,000 | 2,500,000 | 2,000,000 | |||
Repayment of loan | (511,605) | (2,597,351) | ||||
(47,351) | 2,019,558 | |||||
NET INCREASE (DECREASE) IN CASH: | 535,398 | (21,730) | ||||
EFFECT OF FOREIGN EXCHANGE ON CASH | 23,455 | 214,386 | ||||
CASH, BEGINNING OF PERIOD: | $ 667,125 | 108,272 | 32,683 | 32,683 | ||
CASH, END OF PERIOD: | $ 667,125 | $ 225,339 | 667,125 | 225,339 | $ 108,272 | |
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||
Taxes paid | 0 | 0 | ||||
Interest paid | $ (62,602) | $ (11,806) |
NATURE OF BUSINESS
NATURE OF BUSINESS | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | 1. Nature of Business Hunt Mining Corp. (the "Company" or "Hunt"), is a mineral exploration company incorporated on January 10, 2006 under the laws of Alberta, Canada and, together with its subsidiaries, is engaged in the exploration of mineral properties in Santa Cruz Province, Argentina. Effective November 6, 2013, the Company continued from the Province of Alberta to the Province of British Columbia. The Company's registered office is located at 25th Floor, 700 West Georgia Street, Vancouver, B.C. V7Y 1B3. The Company's head office is located at 23800 E Appleway Avenue, Liberty Lake, Washington, 99019 USA. The consolidated interim financial statements include the accounts of the following subsidiaries after elimination of intercompany transactions and balances: Corporation Incorporation Percentage ownership Business Purpose Cerro Cazador S.A. Argentina 100% Holder of Assets and Exploration Company Ganadera Patagonia SRL Argentina 40% Land Holding Company 1494716 Alberta Ltd. Alberta, Canada 100% Nominee Shareholder Hunt Gold USA LLC Washington, USA 100% Management Company (1) The Company has determined that the subsidiary is a variable interest entity because the Company is the primary beneficiary of the land the subsidiary holds, and therefore consolidates the subsidiary in its interim financial statements. The Company's activities include the exploration of mineral properties in Argentina and the Mina Martha project (Note 8). On the basis of information to date, the Company has not yet determined whether the Exploration properties contain economically recoverable ore reserves. The underlying value of the mineral properties is entirely dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete development and upon future profitable production or a sale of these properties. The Mina Martha project was purchased in the second quarter of 2016 and refurbishing activities began in late 2016. The Company finished all refurbishments to the Mina Martha project in the first quarter of 2017 and began operations and selling concentrate in the second quarter of 2017. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 2. Basis of presentation These consolidated interim financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America ("US GAAP"). These consolidated interim financial statements have been prepared on a historical cost basis except for certain financial instruments measured at fair value. In addition, these consolidated interim financial statements have been prepared using the accrual basis of accounting, except for cash flow information. The Company's presentation currency is the US Dollar. The preparation of the consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. Judgments made by management in the application of US GAAP that have a significant effect on the consolidated interim financial statements and estimates with significant risk of material adjustment in the current and following years are discussed in Note 6. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Substantial Doubt about Going Concern [Text Block] | 3. Going Concern The accompanying consolidated interim financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. During the six months ended June 30, 2017, the Company had net income of $611,057. As at June 30, 2017, the Company had an accumulated deficit of $37,038,513. The Company intends to continue funding operations through operation of the Martha Mine and equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending December 31, 2017. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying interim financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 4. Significant Accounting Policies The significant accounting policies used in the preparation of these consolidated interim financial statements are described below. (a) Basis of measurement The consolidated interim financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial assets and financial liabilities to fair value. (b) Consolidation The Company's consolidated interim financial statements consolidate the accounts of the Company and its subsidiaries. All intercompany transactions, balances and unrealized gains or losses from intercompany transactions are eliminated on consolidation. (c) Foreign currency translation Monetary assets and liabilities, denominated in foreign currencies are translated into the functional currency at the rates of exchange prevailing at the reporting date. Non-monetary assets and liabilities are translated at the exchange rate prevailing at the transaction date. Revenues and expenses are translated at average exchange rates throughout the reporting period. Gains and losses on translation of foreign currencies are included in the consolidated statement of operations. The Company's functional currency is the Canadian dollar. All of the Company's subsidiaries have a US dollar functional currency. Interim financial statements are translated to their US dollar equivalents using the current rate method. Under this method, the statements of operations and comprehensive loss and cash flows for each period have been translated using the average exchange rates prevailing during each period. All assets and liabilities have been translated using the exchange rate prevailing at the balance sheet date. Translation adjustments are recorded as income or losses in other comprehensive income or loss. Transaction gains and losses resulting from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized as incurred in the accompanying consolidated statement of loss and comprehensive loss. (d) Financial instruments The Company measures the fair value of financial assets and liabilities based on US GAAP guidance, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions, which are accounted for at the transferor's carrying amount or exchange amount. Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income. See Note 16 to the Consolidated Interim financial statements for fair value disclosures. (e) Cash and equivalents Cash and equivalents include cash on hand, deposits held with banks and other liquid short-term investments with original maturities of three months or less. The Company has no cash equivalents for all years presented. (f) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of an asset. Repairs and maintenance costs are charged to the consolidated statement of operations and comprehensive loss during the period in which they are incurred. Depreciation is calculated to amortize the cost of the property, plant and equipment over their estimated useful lives using the straight-line method. Plant, buildings, equipment and vehicles are stated at cost and depreciated straight line over an estimated useful life of three to eight years. Depreciation begins once the asset is in the state intended for use by management. The Company allocates the amount initially recognized in respect of an item of property and equipment to its significant parts and depreciates separately each such part. Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. Gains and losses on disposals of property, plant and equipment are determined by comparing the proceeds with the carrying amount of the asset and are included as part of other gains or losses (g) Mineral properties and exploration and evaluation expenditures All exploration expenditures are expensed as incurred. Expenditures to acquire mineral rights, to develop new mines, to define further mineralization in mineral properties which are in the development or operating stage, and to expand the capacity of operating mines, are capitalized and amortized on a straight-line basis over the estimated life of the mine. Should a property be abandoned, its capitalized costs are charged to the consolidated statement of loss and comprehensive loss. The Company charges to the consolidated statement of loss and comprehensive loss the allocable portion of capitalized costs attributable to properties sold. Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area. (h) Long-lived assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted net cash flows related to the long-lived assets. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of their carrying amount or fair value less costs to sell. (i) Asset retirement obligations The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and/or normal use of the long-lived assets. The Company also records a corresponding asset, which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). (j) Income taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the asset and liability method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion or all of the deferred tax asset will not be recognized. (k) Share-based compensation The Company offers a share option plan for its directors, officers, employees and consultants. ASC 718 "Compensation – Stock Compensation" prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the interim financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, "Equity Based Payments to Non-Employees." Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date. (l) Earnings (loss) per share The calculation of earnings (loss) per share ("EPS") is based on the weighted average number of shares outstanding for each year. The basic EPS is calculated by dividing the earnings or loss attributable to the equity owners of the Company by the weighted average number of common shares outstanding during the year. The computation of diluted EPS assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on the earnings per share. The treasury stock method is used to determine the dilutive effect of the warrants and share options. When the Company reports a loss, the diluted net loss per common share is equal to the basic net loss per common share due to the anti-dilutive effect of the outstanding warrants and share options. (m) Silver Recovery Recovery of concentrate and other income is recognized when title and the risks and rewards of ownership to delivered concentrate and commodities pass to the buyer and collection is reasonably assured. (n) Inventories Mineral concentrate and ore stockpiles are physically measured or estimated and valued at the lower of cost or net realizable value. Net realizable value is the estimated future sales price of the product the entity expects to realize when the product is processed and sold, less estimated costs to complete production and bring the product to sale. Where the time value of money is material, these future prices and costs to complete are discounted. If the ore stockpile is not expected to be processed in 12 months after the reporting date, it is included in noncurrent assets and the net realizable value is calculated on a discounted cash flow basis. Cost of silver concentrate and ore stockpiles is determined by using the first in first out method and comprises direct costs and a portion of fixed and variable overhead costs, including depreciation and amortization, incurred in converting materials into concentrate, based on the normal production capacity. Materials and supplies are valued at the lower of cost or net realizable value. Any provision for obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine the extent of any provision for obsolescence. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncement or Change in Accounting Principle, Description [Abstract] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | 5. Recently Issued Accounting Pronouncements Restricted Cash In November 2016, ASU No. 2016-18 was issued related to the inclusion of restricted cash in the statement of cash flows. This new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The adoption of this guidance will result in the inclusion of the restricted cash balances within the overall cash balance and removal of the changes in restricted cash activities, which are currently recognized in other financing activities, on the Statements of Consolidated Cash Flows. Furthermore, an additional reconciliation will be required to reconcile Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to sum to the total shown in the Statements of Consolidated Cash Flows. The Company anticipates adopting this new guidance effective January 1, 2018. Intra-Entity Transfers In October 2016, ASU No. 2016-16 was issued related to the intra-entity transfers of assets other than inventory. This new guidance requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Interim financial statements and disclosures. Statement of Cash Flows In August 2016, ASU No. 2016-15 was issued related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Interim financial statements and disclosures. Stock-based compensation In March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016 and early adoption is permitted. The adoption of this ASU had no material impact on the Company's interim consolidated financial statements. Leases In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the updated guidance. Investments In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is not permitted. The Company is currently evaluating the updated guidance. Inventory In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016 and early adoption is permitted. The adoption of this ASU had no material impact on the Company's interim consolidated financial statements. Revenue recognition In May 2014, ASU No. 2014-09 was issued related to revenue from contracts with customers. This ASU was further amended in August 2015, March 2016, April 2016, May 2016 and December 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 and No. 2016-20, respectively. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017 and will be applied retrospectively. Early adoption is not permitted. The Company is currently evaluating the updated guidance. |
CRITICAL ACCOUNTING JUDGMENTS A
CRITICAL ACCOUNTING JUDGMENTS AND ESTIMATES | 6 Months Ended |
Jun. 30, 2017 | |
Policy Text Block [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | 6. Critical accounting judgments and estimates (a) Significant judgments Preparation of the consolidated interim financial statements requires management to make judgments in applying the Company's accounting policies. Judgments that have the most significant effect on the amounts recognized in these consolidated interim financial statements relate to functional currency; income taxes; provisions and reclamation and closure cost obligations. These judgments have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Functional Currency Management determines the functional currency for each entity. This requires that management assess the primary economic environment in which each of these entities operates. Management's determination of functional currencies affects how the Company translates foreign currency balances and transactions. Determination includes an assessment of various indicators. In determining the functional currency of the Company's operations in Canada (Canadian dollar) and Argentina (U.S. dollar), management considered the indicators of ASC 830. Income Taxes Significant judgment is required in determining the provision for income taxes. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain and subject to judgment. The Company recognizes liabilities and contingencies for anticipated tax audit issues based on the Company's current understanding of the tax law in the various jurisdictions in which it operates. For matters where it is probable that an adjustment will be made, the Company records its best estimate of the tax liability including the related interest and penalties in the current tax provision. Management believes they have adequately provided for the probable outcome of these matters; however, the final outcome may result in a materially different outcome than the amount included in the tax liabilities. Provisions Management makes judgments as to whether an obligation exists and whether an outflow of resources embodying economic benefits of a liability of uncertain timing or amount is probable, not probable or remote. Management considers all available information relevant to each specific matter. Reclamation and closure costs obligations The Argentine mining regulations require that mine property be restored in accordance with specified standards and an approved reclamation plan. Significant reclamation activities include reclaiming refuse and slurry ponds, reclaiming the pit and support acreage at surface mines, and sealing portals at deep mines. The Company accrues for the cost of final mine closure reclamation over the estimated useful mining life of the property. At each period, the Company reviews the entire reclamation liability and makes necessary adjustments for revisions to cost estimates to reflect current experience. The Company has adopted ASC 410, Asset Retirement and Environmental Obligations, which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time that the obligations are incurred. Upon initial recognition of a liability, that cost is capitalized as part of the related long-lived asset and allocated to expense over the useful life of the asset. (b) Estimation uncertainty The preparation of the consolidated interim financial statements in conformity with US GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated interim financial statements and the reported amounts of revenues and expenses during the reporting period. The Company also makes estimates and assumptions concerning the future. The determination of estimates requires the exercise of judgment based on various assumptions and other factors such as historical experience and current and expected economic conditions. Actual results could differ from those estimates. The more significant areas requiring the use of management estimates and assumptions relate to title to mineral property interests; share-based payments, asset retirement obligations and inventories. These estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The Company is also exposed to legal risk. The outcome of currently pending and future proceedings cannot be predicted with certainty. Thus, an adverse decision in a lawsuit could result in additional costs that are not covered, either wholly or partly, under insurance policies and that could significantly influence the business and results of operations. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Title to Mineral Property Interests Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects. Share-based Payment Transactions The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions is done by application of the Black-Scholes option-pricing model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the Black-Scholes option-pricing model, including the expected life of the stock option, forfeiture rate, and volatility based on historical share prices and dividend yield and making assumptions about them. Legal Proceedings In the normal course of business, legal proceedings and other claims brought against the Company expose us to potential losses. Given the nature of these events, in most cases the amounts involved are not reasonably estimable due to uncertainty about the final outcome. In estimating the final outcome of litigation, management makes assumptions about factors including experience with similar matters, past history, precedents, relevant financial, scientific and other evidence, and facts specific to the matter. This determines whether management requires a provision or disclosure in the consolidated interim financial statements. Asset retirement obligation Upon retirement of the Company's mineral properties, retirement costs will be incurred by the Company. Estimates of these costs are subject to uncertainty associated with the method, timing and extent of future decommissioning activities. The liability, the related asset and the expense are affected by estimates with respect to the costs and timing of retiring the assets. Inventories Net realizable value tests are performed at each reporting date and represent the estimated future sales price of the product the Company expects to realize when the product is processed and sold, less estimated costs to complete production and bring the product to sale. Where the time value of money is material, these future prices and costs to complete are discounted. Stockpiles are measured by estimating the number of tones added and removed from the stockpile, the number of contained ore ounces is based on assay data, and the estimated recovery percentage is based on the expected processing method. Stockpile tonnages are verified by periodic surveys. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 7. Inventories June 30, 2017 December 31, 2016 Silver concentrate $ 162,847 $ - Ore stockpiles 373,443 - Materials and supplies 45,034 - $ 581,324 $ - |
MINERAL PROPERTIES
MINERAL PROPERTIES | 6 Months Ended |
Jun. 30, 2017 | |
Mineral Industries Disclosures [Abstract] | |
Mineral Industries Disclosures [Text Block] | 8. Mineral properties (a) Acquisition of Mina Martha project On May 6, 2016, the Company acquired the assets of the Mina Martha project from Coeur Mining Inc. ("Coeur"). The Mina Martha project consists of land, mineral rights, a mine camp, offices, a warehouse, maintenance shop, mining facilities including a flotation mill and a tailings retention facility. The transaction has been accounted for as acquisition of assets. The consideration of $3,000,000 paid by Hunt Mining Corp., and the transaction costs of $129,360 have been allocated to the assets and liabilities acquired based on their relative fair value on the date of acquisition. During the six-month period ended June 30, 2017, the Company paid the remaining purchase price of $1,500,000 outstanding as at December 31, 2016. The following table summarizes the allocation of the purchase price and the related acquisition costs to the fair value of the assets acquired at the date of acquisition. Consideration Paid: Cash consideration paid: $ 3,000,000 Transaction costs incurred: 129,360 $ 3,129,360 Net identifiable assets acquired: Vehicles and Equipment $ 1,155,000 Buildings 117,500 Plant 1,775,536 Land 321,294 Mineral properties 438,062 Asset retirement obligation (678,032 ) $ 3,129,360 (b) Acquisition of La Josefina project In March 2007, the Company acquired the exploration and development rights to the La Josefina project from Fomento Minero de Santa Cruz Sociedad del Estado ("Fomicruz"). In July 2007, the Company entered into an agreement (subsequently amended) with Fomicruz which provides that, in the event that a positive feasibility study is completed on the La Josefina property, a Joint Venture Corporation ("JV Corporation") would be formed by the Company and Fomicruz. The Company would own 81% of the joint venture company and Fomicruz would own the remaining 19%. Fomicruz has the option to earn up to a 49% participating interest in JV Corporation by reimbursing the Company an equivalent amount, up to 49%, of the exploration investment made by the Company. The Company has the right to buy back any increase in Fomicruz's ownership interest in the JV Corporation at a purchase price of USD$200,000 per each percentage interest owned by Fomicruz down to its initial ownership interest of 19%; the Company can also purchase 10% of the Fomicruz's initial 19% JV Corporation ownership interest by negotiating a purchase price with Fomicruz. Under the agreement, the Company has until the end of 2019 to complete cumulative exploration expenditures of $18 million and determine if it will enter into production on the property. (c) Acquisition of La Valenciana project On November 1, 2012, the Company entered into an agreement for the exploration of the La Valenciana project in Santa Cruz province, Argentina. The agreement is for a total of 7 years, expiring on October 31, 2019. The agreement requires the Company to spend $5,000,000 in exploration on the project over 7 years. If the Company elects to exercise its option to bring the La Valenciana project into production it must grant Fomicruz a 9% ownership in a new JV Corporation to be created by the Company to manage the project and the Company will have a 91% ownership interest in the JV Corporation. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | 9. Asset retirement obligation On May 6, 2016, the Company purchased the Mina Martha project (Note 8) that has an estimated life of 8 years. The Company is legally required to perform reclamation on the site to restore it to its original condition at the end of its useful life. In accordance with FASB ASC 410-20, Asset Retirement Obligations, the Company recognized the fair value of a liability for an asset retirement obligation in the amount of $678,032. The total amount of undiscounted cash flows required to settle the estimated obligation is $1,226,817 which has been discounted using a credit-adjusted rate of 10% and an inflation rate of 2%. The Company capitalized that cost as part of the carrying amount of the flotation plant acquired as part of the Mina Martha project, which is depreciated on a straight-line basis over 8 years. The following table describes all of the changes to the Company's asset retirement obligation liability: June 30, 2017 December 31, 2016 Asset retirement obligation at beginning of period $ 721,695 $ - Additions - 678,032 Accretion expense 34,924 43,663 Asset retirement obligation at end of period $ 756,619 $ 721,695 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 10. Property, Plant and Equipment Land Plant Buildings Vehicles and Equipment Total Cost Balance at December 31, 2015 $ 714,103 $ - $ - $ 1,132,837 $ 1,846,940 Additions 321,294 2,631,646 117,500 1,219,385 4,289,825 Balance at December 31, 2016 1,035,397 2,631,646 117,500 2,352,222 6,136,765 Additions - - - 44,767 44,767 Balance at June 30, 2017 $ 1,035,397 $ 2,631,646 $ 117,500 $ 2,396,989 $ 6,181,532 Land Plant Buildings Vehicles and Equipment Total Accumulated amortization Balance at December 31, 2015 $ - $ - $ - $ 1,118,442 $ 1,118,442 Depreciation for the year - - - 83,540 83,540 Balance at December 31, 2016 - - - 1,201,982 1,201,982 Depreciation for the period - 370,252 19,583 207,503 597,338 Balance at June 30, 2017 $ - $ 370,252 $ 19,583 $ 1,409,485 $ 1,799,320 Land Plant Buildings Vehicles and Equipment Total Net book value At December 31, 2016 $ 1,035,397 $ 2,631,646 $ 117,500 $ 1,150,240 $ 4,934,783 At June 30, 2017 $ 1,035,397 $ 2,261,394 $ 97,917 $ 987,504 $ 4,382,212 |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 11. Capital Stock Authorized: Unlimited number of common shares without par value Unlimited number of preferred shares without par value Issued: Common Shares Six months ended Year ended June 30, 2017 December 31, 2016 Number Amount Number Amount Balance, beginning of period 63,588,798 $ 24,695,186 62,150,298 $ 24,560,711 Non-brokered private placements - - 1,313,500 229,433 Exercise of stock options - - 125,000 14,311 Portion of units attributable to warrants issued - - - (109,269 ) Balance, end of period 63,588,798 $ 24,695,186 63,588,798 $ 24,695,186 Warrants Six months ended Year ended June 30, 2017 December 31, 2016 Number Amount Number Amount Balance, beginning of period 48,862,500 $ 735,152 47,500,000 $ 625,883 Portion of units attributable to warrants issued - - 1,362,500 109,269 Balance, end of period 48,862,500 $ 735,152 48,862,500 $ 735,152 Common share issuances: On November 25, 2016, the Company announced the closing of the non-brokered private placement. The Company issued 1,313,500 units at an issue price of CAD $0.25 per unit. Each unit consists of one common share and one common share purchase warrant. Each common share purchase warrant entitles the holder to acquire common shares at an exercise price of CAD $0.40 per common share until November 25, 2018. The non-brokered private placement raised $229,433, net of cash share issuance costs of $14,604 and the issuance of 49,000 broker warrants on the same terms as the warrants included within the units. The fair value of the warrants attached in the units was determined to be $109,269. The $109,269 fair value of the 1,313,500 warrants granted as part of the units was calculated using the Black-Scholes option pricing model and using the following assumptions: November 25, 2016 Risk free interest rate 0.75% Expected volatility 252.66% Expected life (years) 2 Expected dividend yield 0% Forfeiture rate 0% Stock price $0.26 Stock options Under the Company's share option plan, and in accordance with TSX Venture Exchange requirements, the number of common shares reserved for issuance under the option plan shall not exceed 10% of the issued and outstanding common shares of the Company, have a maximum term of 5 years and vest at the discretion of the Board of Directors. In connection with the foregoing, the number of common shares reserved for issuance to: (a) any individual director or officer will not exceed 5% of the issued and outstanding common shares; and (b) all consultants will not exceed 2% of the issued and outstanding common shares. Range of Exercise prices (CAD) Number outstanding Weighted average life (years) Weighted average exercise price (CAD) Number exercisable on June 30, 2017 Stock options $0.15 - $1.00 4,180,000 3.73 $ 0.21 4,180,000 June 30, 2017 December 31, 2016 Number of options Weighted Average Price (CAD) Number of options Weighted Average Price (CAD) Balance, beginning of period 4,225,000 $ 0.24 434,753 $ 1.59 Granted - $ 0.00 4,000,000 $ 0.15 Forfeiture of stock options - $ 0.00 (35,000 ) $ 1.00 Expiration of stock options (45,000 ) $ 3.00 (49,753 ) $ 3.34 Exercise of stock options - $ 0.00 (125,000 ) $ 0.15 Balance, end of period 4,180,000 $ 0.21 4,225,000 $ 0.24 On February 27, 2017, 45,000 options with an exercise price of CAD $3.00 expired. As at June 30, 2017, the Company's outstanding and exercisable stock options have an aggregate intrinsic value of $164,172 (December 31, 2016 - $374,898) Warrants: Range of Exercise prices (CAD) Number outstanding Weighted average life (years) Weighted average exercise price (CAD) Warrants $0.05 - $0.40 48,862,500 3.13 $ 0.07 June 30, 2017 December 31, 2016 Number of warrants Weighted Average Price (CAD) Number of warrants Weighted Average Price (CAD) Balance, beginning of period 48,862,500 $ 0.07 47,500,000 $ 0.06 Warrants 0 0.00 1,362,500 $ 0.40 Balance, end of period 48,862,500 $ 0.07 48,862,500 $ 0.07 |
PERFORMANCE BOND
PERFORMANCE BOND | 6 Months Ended |
Jun. 30, 2017 | |
Guarantees [Abstract] | |
Guarantees [Text Block] | 12. Performance bond The performance bond, originally required to secure the Company's rights to explore the La Josefina property, is a step-up US dollar denominated 2.5% coupon bond, paying quarterly, issued by the Government of Argentina with a face value of $600,000 and a maturity date of 2035. The bond trades in the secondary market in Argentina. The bond was originally purchased for $247,487. As of the six months ended June 30, 2017, the value of the bond increased to $410,716 (December 31, 2016-$381,355). The change in the face value of the performance bond of $29,361 for the period ended June 30, 2017 (June 30, 2016- $70,227) is recorded as other comprehensive income (loss) in the Company's consolidated statement of loss and comprehensive loss. Since Cerro Cazador S.A. ("CCSA") fulfilled its exploration expenditure requirement mandated by the agreement with Fomento Minero de Santa Cruz Sociedad del Estado ("Fomicruz"), the performance bond was no longer required to secure the La Josefina project. Therefore, in June 2010 the Company used the bond to secure the La Valenciana project, an additional Fomicruz exploration project. |
LOAN PAYABLE
LOAN PAYABLE | 6 Months Ended |
Jun. 30, 2017 | |
Policy Text Block [Abstract] | |
Loan Commitments, Policy [Policy Text Block] | 13. Loan Payable The Following is a summary of all notes payable. June 30, 2017 December 31, 2016 Unsecured loan payable to Timothy Hunt, at 8% interest per annum, due on demand $ 1,873,960 $ 1,972,092 Loan payable to Ocean Partners, repayable in monthly installments of $15,000 per dry metric ton of concentrate, at 6% per annum, secured by concentrate, due 2017 (1) 1,500,000 - Loan payable to Ocean Partners, repayable in monthly installments of $15,000 per dry metric ton of concentrate, at 6% per annum, secured by concentrate, due 2017 - 1,499,219 $ 3,373,960 $ 3,471,311 (1) |
BANK INDEBTEDNESS
BANK INDEBTEDNESS | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 14. Bank indebtedness During the three months ended March 31, 2017, the Company drew the maximum of $50,000 against its secured variable rate line of credit due December 31, 2017. The Company makes monthly interest only payments. Interest is charged at the lender's Index Rate plus 1.0%, with a floor of 4.25%. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 15. Related Party Transactions During the six months ended June 30, 2017, the Company incurred $102,229 (2016- $38,751) in professional fees expense relating to the services of the President of CCSA. Included in accounts payable and accrued liabilities as at June 30, 2017 was $212,255 (December 31, 2016- $180,359) owing to the President of CCSA for professional geological fees. During the six months ended June 30, 2017, the Company incurred $31,692 (December 31, 2016- $10,800) in professional fees expense relating to the accounting services of a director of CCSA. Included in accounts payable and accrued liabilities as at June 30, 2017, the Company had a payable owing to the director of CCSA of $40,603 (December 31, 2016-$39,403). During the six months ended June 30, 2017, the Company incurred $192,493 (December 31, 2016- $10,915) in administrative and office expenses relating to the rental of office space and various administrative services and expenses payable to Hunt Family Limited Partnership, LLC, ("HFLP") an entity controlled by the Company's President, CEO and Executive Chairman. HFLP also advanced $1,586,991 to the Company for general administrative purposes. At June 30, 2017, the Company had a payable owing to HFLP of $3,413,710 (December 31, 2016- $1,576,506). The advances accrue interest at 7% per annum, are unsecured and due on demand. The Company has a loan balance payable to its President, CEO and Executive Chairman of $1,873,960 (December 31, 2016- $1,972,092). During the six months ended June 30, 2017 the Company made payments of $98,132 on the loan principle. During the six months ended June 30, 2017, the President, CEO and Executive Chairman loaned an additional $1,000,000 to the Company which was repaid in full prior to June 30, 2017. The Company incurred interest expense of $65,593 and has $25,916 included in interest payable at June 30, 2017 (December 31, 2016- $53,293). Included in accounts payable and accrued liabilities as at June 30, 2017, are amounts owing to the Company's Chief Financial Officer for consulting fees of $94,957 (December 31, 2016- $50,956). Included in accounts payable and accrued liabilities as at June 30, 2017, are amounts owing to the Company's President for wages of $84,000 (December 31, 2016– $84,000). All related party transactions are in the normal course of business, and were measured at the exchange amount which is the amount of consideration established and agreed to by the related party. Remuneration of directors and key management of the Company The remuneration awarded to directors and to senior key management, including the Executive Chairman and Chief Executive Officer, the Chief Financial Officer, a Director of the Company, the President of CCSA and a Director of CCSA, is as follows: Three months ended June 30, 2017 June 30, 2016 Salaries and benefits $ 58,526 $ 66,853 Professional fees 109,471 49,551 $ 167,997 $ 116,404 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Financial Instruments Disclosure [Text Block] | 16. Financial Instruments The Company's financial instruments consist of cash, accounts receivable, performance bond, bank indebtedness and accounts payable and accrued liabilities, purchase price payable, transaction taxes payable, loan payable and interest payable. The Company characterizes inputs used in determining fair value using a hierarchy that prioritizes inputs depending on the degree to which they are observable. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows: · · · Fair value As at June 30, 2017, there were no changes in the levels in comparison to December 31, 2016. The fair values of financial instruments are summarized as follows: June 30, 2017 June 30, 2016 Carrying amount $ Fair value $ Carrying amount $ Fair value $ Financial Assets FVTPL Cash (Level 1) 667,125 667,125 225,339 225,339 Available for sale Performance bond (Level 1) 410,716 410,716 450,143 450,143 Loans and receivables Accounts receivable 901,686 901,686 79,334 79,334 Financial Liabilities Other financial liabilities Bank indebtedness 50,000 50,000 48,920 48,920 Accounts payable and accrued liabilities 5,564,071 5,564,071 2,833,559 2,833,559 Purchase price payable - - 1,500,000 1,500,000 Transaction taxes payable 129,155 129,155 105,207 105,207 Interest payable 72,243 72,243 - - Loan payable 3,373,960 3,373,960 2,000,000 2,000,000 Cash and performance bond are measured based on Level 1 inputs of the fair value hierarchy on a recurring basis. The carrying value of accounts receivable, bank indebtedness and accounts payable and accrued liabilities, purchase price payable, transaction taxes payable, loan payable and interest payable approximate their fair value because of the short-term nature of these instruments. The Company assessed that there were no indicators of impairment for these financial instruments. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any one institution. Accounts receivable consist of input tax credits receivable and are not considered subject to significant risk. The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. At June 30, 2017, the Company had total cash balances of $667,125 (December 31, 2016- $108,272) at financial institutions, where $0 (zero) (December 31, 2016- $0 (zero)) is in excess of federally insured limits. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 17. Segmented Information All of the Company's operations are in the mineral properties exploration industry with its principal business activity in mineral exploration. The Company conducts its activities primarily in Argentina. All of the Company's long-lived assets are located in Argentina. |
COMMITMENTS AND PROVISION
COMMITMENTS AND PROVISION | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 18. Commitments and Provision a) On March 18, 2011, a lawsuit was filed against the Company and its subsidiaries by a former director and consultant "the Consultant". The lawsuit claimed that the Consultant was an employee of the Company, not a consultant, since 2006. The total value of the claim was US$249,041, including wages, alleged bonus payments, interest and penalties. The consolidated interim financial statements include a provision of $250,000 at June 30, 2017 (December 31, 2016- $250,000). Management intends to defend the Company and its subsidiaries to the fullest extent possible. As of June 30, 2017, the Company has been notified that amounts totaling 1,026,704 pesos ($63,891) ($64,610 as at December 31, 2016) was withheld from its Argentine bank account and placed in escrow with the Court pending the outcome of the lawsuit filed on March 18, 2011 against the Company. b) On October 31, 2011, the Company signed an agreement with the owners of the Piedra Labrada Ranch for the use and lease of facilities on the same premises as the Company's La Josefina facilities. The initial term was for three years beginning November 1, 2011 and ended on October 31, 2014, including annual commitments of $60,000. The Company extended this agreement on April 30, 2015 for three years. |
SILVER RECOVERY
SILVER RECOVERY | 6 Months Ended |
Jun. 30, 2017 | |
Mineral Production And Recovery [Abstract] | |
Mineral Production and Recovery | 19. Silver Recovery Silver recovery includes the sales from concentrate sold during the three months ended June 30, 2017 and the six months ended June 30, 2017 from the Martha Mine project. Sales were $3,756,700 and $4,255,230 respectively. It also includes $190,269 from deferred advances for tailing sales from the Martha Mine project. Silver recovery revenues have been reported net of direct operating expenses of $1,106,050 and $1,585,753 for the three and six months ended June 30, 2017. Accounts receivable include $427,230 for the sales of concentrate. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 1 Months Ended |
Aug. 11, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 20. Subsequent Events Subsequent to June 30, 2017, the Company had sales of concentrate in the amount of $1,025,869 and made principle repayment on the Ocean Partner loan of $511,605. Subsequent to June 30, 2017, the President, CEO and Executive Chairman loaned an additional $500,000 to the Company. The loan is unsecured with interest at 8% per annum and is due on demand. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, and Stockpiles in Progress | June 30, 2017 December 31, 2016 Silver concentrate $ 162,847 $ - Ore stockpiles 373,443 - Materials and supplies 45,034 - $ 581,324 $ - |
MINERAL PROPERTIES (Tables)
MINERAL PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Mineral Industries Disclosures [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Consideration Paid: Cash consideration paid: $ 3,000,000 Transaction costs incurred: 129,360 $ 3,129,360 |
Schedule of Other Current Assets [Table Text Block] | Net identifiable assets acquired: Vehicles and Equipment $ 1,155,000 Buildings 117,500 Plant 1,775,536 Land 321,294 Mineral properties 438,062 Asset retirement obligation (678,032 ) $ 3,129,360 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | June 30, 2017 December 31, 2016 Asset retirement obligation at beginning of period $ 721,695 $ - Additions - 678,032 Accretion expense 34,924 43,663 Asset retirement obligation at end of period $ 756,619 $ 721,695 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Land Plant Buildings Vehicles and Equipment Total Cost Balance at December 31, 2015 $ 714,103 $ - $ - $ 1,132,837 $ 1,846,940 Additions 321,294 2,631,646 117,500 1,219,385 4,289,825 Balance at December 31, 2016 1,035,397 2,631,646 117,500 2,352,222 6,136,765 Additions - - - 44,767 44,767 Balance at June 30, 2017 $ 1,035,397 $ 2,631,646 $ 117,500 $ 2,396,989 $ 6,181,532 |
Servicing Asset at Amortized Cost [Table Text Block] | Land Plant Buildings Vehicles and Equipment Total Accumulated amortization Balance at December 31, 2015 $ - $ - $ - $ 1,118,442 $ 1,118,442 Depreciation for the year - - - 83,540 83,540 Balance at December 31, 2016 - - - 1,201,982 1,201,982 Depreciation for the period - 370,252 19,583 207,503 597,338 Balance at June 30, 2017 $ - $ 370,252 $ 19,583 $ 1,409,485 $ 1,799,320 |
Property, Plant and Equipment [Table Text Block] | Land Plant Buildings Vehicles and Equipment Total Net book value At December 31, 2016 $ 1,035,397 $ 2,631,646 $ 117,500 $ 1,150,240 $ 4,934,783 At June 30, 2017 $ 1,035,397 $ 2,261,394 $ 97,917 $ 987,504 $ 4,382,212 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | Common Shares Six months ended Year ended June 30, 2017 December 31, 2016 Number Amount Number Amount Balance, beginning of period 63,588,798 $ 24,695,186 62,150,298 $ 24,560,711 Non-brokered private placements - - 1,313,500 229,433 Exercise of stock options - - 125,000 14,311 Portion of units attributable to warrants issued - - - (109,269 ) Balance, end of period 63,588,798 $ 24,695,186 63,588,798 $ 24,695,186 |
Schedule Of Warrant Activity | Warrants Six months ended Year ended June 30, 2017 December 31, 2016 Number Amount Number Amount Balance, beginning of period 48,862,500 $ 735,152 47,500,000 $ 625,883 Portion of units attributable to warrants issued - - 1,362,500 109,269 Balance, end of period 48,862,500 $ 735,152 48,862,500 $ 735,152 |
Schedule of Assumptions Used Warrants | November 25, 2016 Risk free interest rate 0.75% Expected volatility 252.66% Expected life (years) 2 Expected dividend yield 0% Forfeiture rate 0% Stock price $0.26 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block] | Range of Exercise prices (CAD) Number outstanding Weighted average life (years) Weighted average exercise price (CAD) Number exercisable on June 30, 2017 Stock options $0.15 - $1.00 4,180,000 3.73 $ 0.21 4,180,000 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | June 30, 2017 December 31, 2016 Number of options Weighted Average Price (CAD) Number of options Weighted Average Price (CAD) Balance, beginning of period 4,225,000 $ 0.24 434,753 $ 1.59 Granted - $ 0.00 4,000,000 $ 0.15 Forfeiture of stock options - $ 0.00 (35,000 ) $ 1.00 Expiration of stock options (45,000 ) $ 3.00 (49,753 ) $ 3.34 Exercise of stock options - $ 0.00 (125,000 ) $ 0.15 Balance, end of period 4,180,000 $ 0.21 4,225,000 $ 0.24 |
Schedule of Warrants, Outstanding | Range of Exercise prices (CAD) Number outstanding Weighted average life (years) Weighted average exercise price (CAD) Warrants $0.05 - $0.40 48,862,500 3.13 $ 0.07 |
Schedule Of Warrant Activity 2 | June 30, 2017 December 31, 2016 Number of warrants Weighted Average Price (CAD) Number of warrants Weighted Average Price (CAD) Balance, beginning of period 48,862,500 $ 0.07 47,500,000 $ 0.06 Warrants 0 0.00 1,362,500 $ 0.40 Balance, end of period 48,862,500 $ 0.07 48,862,500 $ 0.07 |
LOAN PAYABLE (Tables)
LOAN PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Policy Text Block [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | June 30, 2017 December 31, 2016 Unsecured loan payable to Timothy Hunt, at 8% interest per annum, due on demand $ 1,873,960 $ 1,972,092 Loan payable to Ocean Partners, repayable in monthly installments of $15,000 per dry metric ton of concentrate, at 6% per annum, secured by concentrate, due 2017 (1) 1,500,000 - Loan payable to Ocean Partners, repayable in monthly installments of $15,000 per dry metric ton of concentrate, at 6% per annum, secured by concentrate, due 2017 - 1,499,219 $ 3,373,960 $ 3,471,311 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Three months ended June 30, 2017 June 30, 2016 Salaries and benefits $ 58,526 $ 66,853 Professional fees 109,471 49,551 $ 167,997 $ 116,404 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Table Text Block] | June 30, 2017 June 30, 2016 Carrying amount $ Fair value $ Carrying amount $ Fair value $ Financial Assets FVTPL Cash (Level 1) 667,125 667,125 225,339 225,339 Available for sale Performance bond (Level 1) 410,716 410,716 450,143 450,143 Loans and receivables Accounts receivable 901,686 901,686 79,334 79,334 Financial Liabilities Other financial liabilities Bank indebtedness 50,000 50,000 48,920 48,920 Accounts payable and accrued liabilities 5,564,071 5,564,071 2,833,559 2,833,559 Purchase price payable - - 1,500,000 1,500,000 Transaction taxes payable 129,155 129,155 105,207 105,207 Interest payable 72,243 72,243 - - Loan payable 3,373,960 3,373,960 2,000,000 2,000,000 |
GOING CONCERN (Details)
GOING CONCERN (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net Income (Loss) Attributable to Parent | $ 611,057 | $ (2,140,490) | $ (3,109,074) |
Retained Earnings (Accumulated Deficit) | $ (37,038,513) | $ (37,649,570) |
INVENTORIES (Details) - Invento
INVENTORIES (Details) - Inventories | Jun. 30, 2017USD ($) |
Inventories [Abstract] | |
Silver concentrate | $ 162,847 |
Ore stockpiles | 373,443 |
Materials and supplies | 45,034 |
$ 581,324 |
MINERAL PROPERTIES (Details)
MINERAL PROPERTIES (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2019 | May 06, 2016 | |
Mineral Industries Disclosures [Abstract] | |||
Contractual Obligation | $ 3,000,000 | $ 3,000,000 | |
Acquisition of Mining Asset, Transaction Costs Incurred | (129,360) | $ 129,360 | |
Payments to Acquire Mining Assets | $ 1,500,000 | ||
Exploration Costs, Cumulative | $ 18,000,000 |
MINERAL PROPERTIES (Details) -
MINERAL PROPERTIES (Details) - Allocation of the Purchase Price - USD ($) | Jun. 30, 2017 | May 06, 2016 |
Allocation of the Purchase Price [Abstract] | ||
Cash consideration paid: | $ 3,000,000 | $ 3,000,000 |
Transaction costs incurred: | 129,360 | $ (129,360) |
$ 3,129,360 |
MINERAL PROPERTIES (Details) 39
MINERAL PROPERTIES (Details) - Net Identifiable Assets Acquired - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | May 06, 2016 |
Net Identifiable Assets Acquired [Abstract] | |||
Vehicles and Equipment | $ 1,155,000 | ||
Buildings | 117,500 | ||
Plant | 1,775,536 | ||
Land | 321,294 | ||
Mineral properties | 438,062 | ||
Asset retirement obligation | (678,032) | $ (721,695) | $ (678,032) |
$ 3,129,360 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) | 4 Months Ended | ||
May 06, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset Retirement Obligation | $ 678,032 | $ 678,032 | $ 721,695 |
Asset Retirement Obligation, Revision of Estimate | $ 1,226,817 |
ASSET RETIREMENT OBLIGATIONS 41
ASSET RETIREMENT OBLIGATIONS (Details) - Changes in Asset Retirement Obligation Liability - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Changes in Asset Retirement Obligation Liability [Abstract] | ||
Asset retirement obligation at beginning of period | $ 721,695 | |
Additions | $ 678,032 | |
Accretion expense | 34,924 | 43,663 |
Asset retirement obligation at end of period | $ 756,619 | $ 721,695 |
PROPERTY, PLANT AND EQUIPMENT42
PROPERTY, PLANT AND EQUIPMENT (Details) - Property, Plant and Equipment - Cost - USD ($) | 6 Months Ended | 12 Months Ended | 24 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Cost | |||||
$ 1,544,767 | $ 1,069,288 | ||||
Additions | $ 438,062 | ||||
Plant Cost | |||||
Cost | |||||
2,631,646 | $ 2,631,646 | ||||
Additions | $ 2,631,646 | ||||
Cost Total | |||||
Cost | |||||
6,181,532 | 6,136,765 | $ 1,846,940 | |||
Additions | 44,767 | 4,289,825 | |||
Buildings Cost | |||||
Cost | |||||
117,500 | 117,500 | ||||
Additions | 117,500 | ||||
Vehicles and Equipment Cost | |||||
Cost | |||||
2,396,989 | 2,352,222 | 1,132,837 | |||
Additions | 44,767 | 1,219,385 | |||
Land Cost | |||||
Cost | |||||
$ 1,035,397 | $ 1,035,397 | $ 714,103 | |||
Additions | $ 321,294 |
PROPERTY, PLANT AND EQUIPMENT43
PROPERTY, PLANT AND EQUIPMENT (Details) - Property, Plant and Equipment - Accumulated amortization - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Amortization - Buildings | |||
Accumulated amortization | |||
$ 19,583 | |||
19,583 | |||
Accumulated Amortization - Total | |||
Accumulated amortization | |||
1,799,320 | $ 1,201,982 | $ 1,118,442 | |
597,338 | 83,540 | ||
Accumulated Amortization - Plant | |||
Accumulated amortization | |||
370,252 | |||
370,252 | |||
Accumulated Amortization - Vehicles and Equipment | |||
Accumulated amortization | |||
1,409,485 | 1,201,982 | $ 1,118,442 | |
$ 207,503 | $ 83,540 |
PROPERTY, PLANT AND EQUIPMENT44
PROPERTY, PLANT AND EQUIPMENT (Details) - Property, Plant and Equipment - Net Book Value - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Net book value | ||
At December 31, 2016 | $ 4,934,783 | |
At June 30, 2017 | 4,382,212 | $ 4,934,783 |
Net book value - Plant | ||
Net book value | ||
At December 31, 2016 | 2,631,646 | |
At June 30, 2017 | 2,261,394 | |
Net book value - Vehicles and Equipment | ||
Net book value | ||
At December 31, 2016 | 1,150,240 | |
At June 30, 2017 | 987,504 | |
Net book value - Buildings | ||
Net book value | ||
At December 31, 2016 | 117,500 | |
At June 30, 2017 | 97,917 | |
Net book value - Land | ||
Net book value | ||
At December 31, 2016 | 1,035,397 | |
At June 30, 2017 | 1,035,397 | |
Net book value - Total | ||
Net book value | ||
At December 31, 2016 | $ 4,934,783 | |
At June 30, 2017 | $ 4,382,212 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) | 1 Months Ended | 11 Months Ended | 35 Months Ended | |||
Feb. 27, 2017CAD / sharesshares | Nov. 25, 2016USD ($)shares | Nov. 25, 2018CAD / shares | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 25, 2016CAD / shares | |
Stockholders' Equity Note [Abstract] | ||||||
Units Issued During Period, Units, New Units | 1,313,500 | |||||
Sale of Stock, Price Per Share (in Dollars per share) | CAD / shares | CAD 0.25 | |||||
Investment Warrants, Exercise Price (in Dollars per share) | CAD / shares | CAD 0.40 | |||||
Units Issued During Period Value Of Units New Units | $ 229,433 | |||||
Payments of Stock Issuance Costs | $ 14,604 | |||||
Stock And Warrants Issued During Period Warrants Preferred Stock And Warrants (in Shares) | shares | 49,000 | |||||
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 109,269 | |||||
Warrants Issued During Period, Warrants, Warrants Granted as Part of Units (in Shares) | shares | 1,313,500 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures (in Shares) | shares | 45,000 | |||||
Investment Options, Exercise Price (in Dollars per share) | CAD / shares | CAD 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 164,172 | $ 374,898 |
CAPITAL STOCK (Details) - Commo
CAPITAL STOCK (Details) - Common Stock Activity - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2017 | |
Number | ||
CAPITAL STOCK (Details) - Common Stock Activity [Line Items] | ||
Balance, beginning of period | 62,150,298 | 63,588,798 |
Non-brokered private placements | 1,313,500 | |
Exercise of stock options | 125,000 | |
Balance, end of period | 63,588,798 | 63,588,798 |
Amount | ||
CAPITAL STOCK (Details) - Common Stock Activity [Line Items] | ||
Balance, beginning of period | 24,560,711 | 24,695,186 |
Non-brokered private placements | 229,433 | |
Exercise of stock options | 14,311 | |
Portion of units attributable to warrants issued (in Dollars) | $ (109,269) | |
Balance, end of period | 24,695,186 | 24,695,186 |
CAPITAL STOCK (Details) - Warra
CAPITAL STOCK (Details) - Warrant Activity - shares | Jun. 30, 2017 | Dec. 31, 2016 | Nov. 25, 2016 |
CAPITAL STOCK (Details) - Warrant Activity [Line Items] | |||
Portion of units attributable to warrants issued | 1,313,500 | ||
Number | |||
CAPITAL STOCK (Details) - Warrant Activity [Line Items] | |||
Balance, beginning of period | 48,862,500 | 47,500,000 | |
Portion of units attributable to warrants issued | 1,362,500 | ||
Balance, end of period | 48,862,500 | 48,862,500 | |
Amount | |||
CAPITAL STOCK (Details) - Warrant Activity [Line Items] | |||
Balance, beginning of period | 735,152 | 625,883 | |
Portion of units attributable to warrants issued | 109,269 | ||
Balance, end of period | 735,152 | 735,152 |
CAPITAL STOCK (Details) - Fair
CAPITAL STOCK (Details) - Fair Value of the Warrants at November 25, 2016 | 6 Months Ended |
Jun. 30, 2017CAD / shares | |
Fair Value of the Warrants at November 25, 2016 [Abstract] | |
Risk free interest rate | 0.75% |
Expected volatility | 252.66% |
Expected life (years) | 2.00% |
Expected dividend yield | 0.00% |
Forfeiture rate | 0.00% |
Stock price (in Dollars per share) | CAD 0.26 |
CAPITAL STOCK (Details) - Stock
CAPITAL STOCK (Details) - Stock Options | 6 Months Ended |
Jun. 30, 2017CAD / sharesshares | |
Number Exercisable | |
CAPITAL STOCK (Details) - Stock Options [Line Items] | |
Stock options (in Shares) | shares | 4,180,000 |
Weighted Average Life Years | |
CAPITAL STOCK (Details) - Stock Options [Line Items] | |
Stock options | 3 years 266 days |
Number Outstanding | |
CAPITAL STOCK (Details) - Stock Options [Line Items] | |
Stock options (in Shares) | shares | 4,180,000 |
Range of Exercise Price CAD | |
CAPITAL STOCK (Details) - Stock Options [Line Items] | |
Stock options | CAD 0.15 |
Stock options | 1 |
Weighted Average Exercise Price | |
CAPITAL STOCK (Details) - Stock Options [Line Items] | |
Stock options | CAD 0.21 |
CAPITAL STOCK (Details) - Sto50
CAPITAL STOCK (Details) - Stock Options Activity - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Number Of Options | ||
CAPITAL STOCK (Details) - Stock Options Activity [Line Items] | ||
Balance, beginning of period | 4,225,000 | 434,753 |
Granted | 4,000,000 | |
Forfeiture of stock options | (35,000) | |
Expiration of stock options | (45,000) | (49,753) |
Exercise of stock options | (125,000) | |
Balance, end of period | 4,180,000 | 4,225,000 |
Weighted Average Price CAD | ||
CAPITAL STOCK (Details) - Stock Options Activity [Line Items] | ||
Balance, beginning of period | 0.24 | 1.59 |
Granted | 0 | 0.15 |
Forfeiture of stock options | 0 | 1 |
Expiration of stock options | 3 | 3.34 |
Exercise of stock options | 0 | 0.15 |
Balance, end of period | 0.21 | 0.24 |
CAPITAL STOCK (Details) - War51
CAPITAL STOCK (Details) - Warrants | 6 Months Ended |
Jun. 30, 2017CADCAD / sharesshares | |
Weighted Average Life Years | |
CAPITAL STOCK (Details) - Warrants [Line Items] | |
Warrants | 3 years 47 days |
Number Outstanding | |
CAPITAL STOCK (Details) - Warrants [Line Items] | |
Warrants (in Shares) | shares | 48,862,500 |
Range of Exercise Price CAD | |
CAPITAL STOCK (Details) - Warrants [Line Items] | |
Warrants | CAD 0.05 |
Warrants | CAD 0.40 |
Weighted Average Exercise Price | |
CAPITAL STOCK (Details) - Warrants [Line Items] | |
Warrants (in Dollars) | CAD | CAD 0.07 |
CAPITAL STOCK (Details) - War52
CAPITAL STOCK (Details) - Warrant Activity - shares | Jun. 30, 2017 | Dec. 31, 2016 | Nov. 25, 2016 |
CAPITAL STOCK (Details) - Warrant Activity [Line Items] | |||
Warrants | 1,313,500 | ||
Weighted Average Price | |||
CAPITAL STOCK (Details) - Warrant Activity [Line Items] | |||
Balance, beginning of period | 0.07 | 0.06 | |
Warrants | 0 | 0.40 | |
Balance, end of period | 0.07 | 0.07 | |
Number of Warrants | |||
CAPITAL STOCK (Details) - Warrant Activity [Line Items] | |||
Balance, beginning of period | 48,862,500 | 47,500,000 | |
Warrants | 0 | 1,362,500 | |
Balance, end of period | 48,862,500 | 48,862,500 |
PERFORMANCE BOND (Details)
PERFORMANCE BOND (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Guarantees [Abstract] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 600,000 | |||
Guarantor Obligations Purchase Price | $ 247,487 | |||
Guarantor Obligations, Liquidation Proceeds, Monetary Amount | $ 410,716 | $ 381,355 | ||
Guarantor Obligations, Current Carrying Value | $ 29,361 | $ 70,227 |
LOAN PAYABLE (Details)
LOAN PAYABLE (Details) - USD ($) | 1 Months Ended | 6 Months Ended |
Aug. 11, 2017 | Jun. 30, 2017 | |
Policy Text Block [Abstract] | ||
Repayments of Notes Payable | $ 511,605 | $ 2,597,351 |
LOAN PAYABLE (Details) - Notes
LOAN PAYABLE (Details) - Notes Payable - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Notes Payable [Abstract] | ||
Unsecured loan payable to Timothy Hunt, at 8% interest per annum, due on demand | $ 1,873,960 | $ 1,972,092 |
Loan payable to Ocean Partners, repayable in monthly installments of $15,000 per dry metric ton of concentrate, at 6% per annum, secured by concentrate, due 2017 (1) | 1,500,000 | |
Loan payable to Ocean Partners, repayable in monthly installments of $15,000 per dry metric ton of concentrate, at 6% per annum, secured by concentrate, due 2017 | 1,499,219 | |
$ 3,373,960 | $ 3,471,311 |
BANK INDEBTEDNESS (Details)
BANK INDEBTEDNESS (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Debt Disclosure [Abstract] | ||
Proceeds from Lines of Credit | $ 50,000 | $ 19,558 |
Line of Credit Facility, Interest Rate at Period End | 1.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | ||||
Professional and Contract Service Expense, Due to Officer or Stockholder | $ 109,471 | $ 49,551 | $ 102,229 | $ 38,751 |
Accounts Payable, Related Parties, Current | 212,255 | 212,255 | 180,359 | |
Professional Fees Due To Officer or Stockholder | 31,692 | 31,692 | 10,800 | |
Due to Other Related Parties | 40,603 | 40,603 | 39,403 | |
Due to Related Parties | 192,493 | 192,493 | 10,915 | |
Due to Other Related Parties, Current | 1,586,991 | 1,586,991 | ||
Accounts Payable Other Related Parties Current | 3,413,710 | 3,413,710 | $ 1,576,506 | |
Debt Instrument, Interest Rate, Effective Percentage | 7.00% | |||
Proceeds from Related Party Debt | 1,873,960 | $ 1,972,092 | ||
Payments for Loans | 98,132 | |||
Interest Expense, Related Party | 65,593 | |||
Interest Payable, Current | 25,916 | 25,916 | 53,293 | |
Accrued Salaries Related Party Other | 94,957 | 94,957 | 50,956 | |
Accrued Salaries Related Party | $ 84,000 | $ 84,000 | $ 84,000 |
RELATED PARTY TRANSACTIONS (D58
RELATED PARTY TRANSACTIONS (Details) - Related Party Transactions - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | ||||
Salaries and benefits | $ 58,526 | $ 66,853 | ||
Professional fees | 109,471 | 49,551 | $ 102,229 | $ 38,751 |
$ 167,997 | $ 116,404 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Disclosure Text Block Supplement [Abstract] | ||
Cash | $ 667,125 | $ 108,272 |
FINANCIAL INSTRUMENTS (Detail60
FINANCIAL INSTRUMENTS (Details) - Fair Value of Financial Instruments - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
FVTPL | |||
Cash (Level 1) | $ 667,125 | $ 108,272 | |
Other financial liabilities | |||
Bank indebtedness | 50,000 | ||
Purchase price payable | 1,500,000 | ||
Interest payable | 72,243 | $ 53,293 | |
Fair Value | |||
FVTPL | |||
Cash (Level 1) | 667,125 | $ 225,339 | |
Available for sale | |||
Performance bond (Level 1) | 410,716 | 450,143 | |
Loans and receivables | |||
Accounts receivable | 901,686 | 79,334 | |
Other financial liabilities | |||
Bank indebtedness | 50,000 | 48,920 | |
Accounts payable and accrued liabilities | 5,564,071 | 2,833,559 | |
Purchase price payable | 1,500,000 | ||
Transaction taxes payable | 129,155 | 105,207 | |
Interest payable | 72,243 | ||
Loan payable | 3,373,960 | 2,000,000 | |
Carrying Amount | |||
FVTPL | |||
Cash (Level 1) | 667,125 | 225,339 | |
Available for sale | |||
Performance bond (Level 1) | 410,716 | 450,143 | |
Loans and receivables | |||
Accounts receivable | 901,686 | 79,334 | |
Other financial liabilities | |||
Bank indebtedness | 50,000 | 48,920 | |
Accounts payable and accrued liabilities | 5,564,071 | 2,833,559 | |
Purchase price payable | 1,500,000 | ||
Transaction taxes payable | 129,155 | 105,207 | |
Interest payable | 72,243 | ||
Loan payable | $ 3,373,960 | $ 2,000,000 |
COMMITMENTS AND PROVISION (Deta
COMMITMENTS AND PROVISION (Details) | 3 Months Ended | 36 Months Ended | |||
Mar. 18, 2011 | Apr. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017ARS | Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Loss Contingency, Damages Sought | $ 249,041 | ||||
Loss Contingency, Estimate of Possible Loss | $ 250,000 | $ 250,000 | |||
Loss Contingency Estimate Of Possible Loss Held By Court | $ 63,891 | ARS 1,026,704 | $ 64,610 | ||
Occupancy, Net | $ 60,000 |
SILVER RECOVERY (Details)
SILVER RECOVERY (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 18 Months Ended |
Aug. 11, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | |
Mineral Production And Recovery [Abstract] | ||||
Revenue Mineral Sales | $ 1,025,869 | $ 3,756,700 | $ 4,255,230 | |
Increase (Decrease) in Deferred Revenue and Customer Advances and Deposits | 190,269 | |||
Operating Costs and Expenses | $ 1,106,050 | 1,585,753 | ||
Accounts Receivable, Net | $ 427,230 | $ 427,230 | $ 427,230 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 18 Months Ended | |
Aug. 11, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | |
Subsequent Events [Abstract] | ||||
Revenue Mineral Sales | $ 1,025,869 | $ 3,756,700 | $ 4,255,230 | |
Repayments of Notes Payable | 511,605 | 2,597,351 | ||
Proceeds from Loans | $ 500,000 | $ 2,500,000 | $ 2,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |