Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Nov. 10, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Hunt Mining Corporation | |
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 | No | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash | $ 147,586 | $ 78,145 |
Accounts receivable | 1,079,496 | 2,144,830 |
Prepaid expenses | 4,552 | 13,750 |
Other deposit | 0 | 55,092 |
Inventory | 1,514,978 | 333,320 |
Total Current Assets | 2,746,612 | 2,625,137 |
NON-CURRENT ASSETS: | ||
Mineral Properties | 438,062 | 438,062 |
Property, plant and equipment | 4,241,383 | 5,033,490 |
Performance bond | 343,214 | 434,639 |
Total Non-Current Assets | 5,022,659 | 5,906,191 |
TOTAL ASSETS | 7,769,271 | 8,531,328 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 6,492,406 | 6,673,319 |
Bank indebtedness | 49,999 | 0 |
Interest payable | 200,594 | 151,024 |
Transaction taxes payable | 15,407 | 47,188 |
Loan payable and current portion of long-term debt | 2,650,664 | 1,062,428 |
Total Current Liabilities | 9,409,070 | 7,933,959 |
NON-CURRENT LIABILITIES: | ||
Long-term debt | 1,065,262 | 1,368,594 |
Asset retirement obligation | 806,554 | 773,436 |
Total Non-Current Liabilities | 1,871,816 | 2,142,030 |
TOTAL LIABILITIES | 11,280,886 | 10,075,989 |
STOCKHOLDERS' DEFICIENCY: | ||
Capital stock: Authorized- Unlimited No Par Value Issued and outstanding - 63,588,798 common shares (December 31, 2017 - 63,588,798 common shares) | 24,695,186 | 24,695,186 |
Additional paid in capital | 9,696,520 | 9,696,520 |
Deficit | (38,062,367) | (35,993,656) |
Accumulated other comprehensive income (loss) | 159,046 | 57,289 |
Total Stockholders' Deficiency | (3,511,615) | (1,544,661) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY | $ 7,769,271 | $ 8,531,328 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Statement of Financial Position [Abstract] | ||
Capital stock: Authorized | Unlimited | Unlimited |
Capital stock: Par Value | $ 0 | $ 0 |
Capital stock: Issued | 63,588,798 | 63,588,798 |
Capital stock: Outstanding | 63,588,798 | 63,588,798 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING EXPENSES: | ||||
Professional fees | $ 214,171 | $ 162,836 | $ 336,264 | $ 281,304 |
Directors fees | 1,589 | 751 | 1,589 | 1,504 |
Exploration expenses | 111,997 | 282,682 | 260,947 | 372,750 |
Travel expenses | 72,043 | 90,603 | 117,510 | 149,664 |
Administrative and office expenses | 26,026 | 74,316 | 93,004 | 199,755 |
Payroll expenses | 93,978 | 105,106 | 201,876 | 177,722 |
Interest expense | 96,068 | 131,264 | 228,828 | 188,909 |
Banking charges | 22,364 | 19,730 | 41,983 | 69,488 |
Depreciation | 403,398 | 300,805 | 805,666 | 597,338 |
Total operating expenses | 1,041,634 | 1,168,093 | 2,087,667 | 2,038,434 |
OTHER INCOME/(EXPENSE): | ||||
Silver and gold recovery, net of expenses | 0 | 2,650,650 | 202,614 | 2,859,746 |
Interest income | 3,197 | 3,047 | 7,538 | 7,836 |
Miscellaneous expense | 0 | 5,217 | 0 | 5,217 |
Transaction taxes | (5,665) | (17,830) | (10,259) | (17,830) |
Gain (loss) on foreign exchange | (161,586) | (175,586) | (143,619) | (162,805) |
Contingent liability recovery | 0 | (7,749) | 0 | (7,749) |
Accretion expense | (18,659) | (17,462) | (37,318) | (34,924) |
Total other income (expense) | (182,713) | 2,440,287 | 18,956 | 2,649,491 |
NET INCOME (LOSS) FOR THE PERIOD | (1,224,347) | 1,272,194 | (2,068,711) | 611,057 |
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: | ||||
Change in value of performance bond | (56,378) | 34,080 | (91,425) | 29,361 |
Foreign currency translation adjustment | 93,356 | (29,387) | 193,182 | (61,309) |
TOTAL NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD | $ (1,187,369) | $ 1,276,887 | $ (1,966,954) | $ 579,109 |
Weighted average shares outstanding - basic and diluted | 63,588,798 | 63,588,798 | 63,588,798 | 63,588,798 |
Weighted average shares outstanding - diluted | 0 | 114,963,798 | 0 | 114,963,798 |
NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED | $ (0.02) | $ 0.02 | $ (0.03) | $ 0.01 |
NET INCOME (LOSS) PER SHARE - DILUTED | $ .00 | $ 0.01 | $ .00 | $ 0.01 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Deficiency) - USD ($) | Common Stock [Member] | Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Additional Paid-in Capital [Member] | Total |
Balance, beginning at Dec. 31, 2016 | $ 24,695,186 | $ (37,649,570) | $ (29,326) | $ 9,661,992 | $ (3,321,718) |
Net income (loss) | 1,655,914 | 1,655,914 | |||
Other comprehensive income | 86,615 | 86,615 | |||
Share based compensation | 34,528 | 34,528 | |||
Balance, ending at Dec. 31, 2017 | 24,695,186 | (35,993,656) | 57,289 | 9,696,520 | (1,544,661) |
Net income (loss) | (2,068,711) | (2,068,711) | |||
Other comprehensive income | 101,757 | 101,757 | |||
Balance, ending at Jun. 30, 2018 | $ 24,695,186 | $ (38,062,367) | $ 159,046 | $ 9,696,520 | $ (3,511,615) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income (loss) | $ (2,068,711) | $ 611,057 | $ 1,655,914 | ||
Items not affecting cash | |||||
Depreciation | $ 403,398 | $ 300,805 | 805,666 | 597,338 | 1,165,592 |
Gain (loss) on foreign exchange | (4,200) | 719 | |||
Accretion | 18,659 | 17,462 | 37,318 | 34,924 | |
Net change in non-cash working capital items | |||||
Decrease (increase) in accounts receivable | 1,065,334 | (775,233) | |||
Decrease in prepaid expenses | 9,717 | 9,468 | |||
Decrease (increase) in inventory | (1,181,658) | (581,324) | |||
Increase (decrease) in accounts payable and accrued liabilities | 189,408 | 2,201,129 | |||
Increase in interest payable | 49,570 | 18,950 | |||
Increase (decrease) in transaction taxes payable | (31,781) | 10,488 | |||
Net cash used in operating activities | (1,129,337) | 2,127,516 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Purchases of property plant and equipment | (161,609) | (1,544,767) | |||
Net cash used in investing activities | (161,609) | (1,544,767) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Change in bank line of credit (net) | 49,999 | 50,000 | |||
Proceeds from loan | 2,345,000 | 2,500,000 | |||
Repayment of loan | (1,060,096) | (2,597,351) | |||
Net cash from financing activities | 1,334,903 | (47,351) | |||
NET INCREASE IN CASH | 43,957 | 535,398 | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 25,484 | 23,455 | |||
CASH, BEGINNING OF PERIOD | 78,145 | 108,272 | 108,272 | ||
CASH, END OF PERIOD | 147,586 | 667,125 | 147,586 | 667,125 | $ 78,145 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||||
Taxes paid | 16,546 | 0 | |||
Interest paid | 0 | (62,602) | |||
SUPPLEMENTAL NON-CASH INFORMATION | |||||
Change in value of performance bond | $ (56,378) | $ 34,080 | (91,425) | 29,361 | |
PP&E included in AP | $ 16,450 | $ 0 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Nature of Business | Hunt Mining Corp. (the "Company" or "Hunt Mining"), is a mineral exploration and processing 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 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. ("CCSA") Argentina 100% Holder of Assets and Exploration Company Ganadera Patagonia (1) Argentina 40% Land Holding Company 1494716 Alberta Ltd. Alberta 100% Nominee Shareholder Hunt Gold USA LLC Washington, USA 100% Management Company (1) The Company's activities include the exploration and processing of minerals from properties in Argentina including 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 selling concentrate in the second quarter of 2017. Despite the sale of concentrate, the Mina Martha project remains in the exploration stage because management has not established proven or probable ore reserves required to be classified in either the development or production stage. As such, the sales of concentrate are classified as silver and gold recovery, net of expenses in profit and loss. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Basis of presentation | These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America ("US GAAP"). These consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments measured at fair value. In addition, these consolidated 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 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 financial statements and estimates with significant risk of material adjustment in the current and following periods are discussed in Note 6. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Going Concern | The accompanying consolidated 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, 2018, the Company had net loss of $2,068,711. As at June 30, 2018, the Company had an accumulated deficit of $38,062,367. The Company intends to continue funding operations through operation of the Martha Mine, La Josefina 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, 2018. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying 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, 2018 | |
Disclosure Text Block [Abstract] | |
Significant Accounting Policies | The significant accounting policies used in the preparation of these consolidated financial statements are described below. (a) Basis of measurement The consolidated 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 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. 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 17 to the Consolidated 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 periods 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 units-of-production basis over proven and probable reserves. 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 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 period. 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 period. 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 and gold 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. Sale of concentrate is classified as silver and gold recovery, net of expenses in profit and loss because the Company has not established proven or probable ore reserves and remains in the exploration stage as defined by Industry guide 7. Not all Mina Martha costs are applied against Silver Recovery. Since the Company has no reserves, the Company is treated as an exploration company and as such, only direct mining and milling costs are applied against Silver Recovery. Other administrative, office, professional fees, and travel are disclosed separately. From time to time, some of the Company's sales of concentrate are made under provisional pricing arrangements where the final sale prices are determined by quoted market prices in a period subsequent to the date of sale. In these circumstances, sales are recorded at period end based on latest information about prices and quantities available to management for the expected date of final settlement. Under such arrangements, the Company's receivable changes as the underlying commodity market price varies, this component of the contract is an embedded derivative which is recognized at fair value with changes in fair value recognized in profit and loss and receivables. Subsequent variations in prices and metal quantities are recognized as they occur. (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, 2018 | |
Disclosure Text Block [Abstract] | |
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 adoption of this ASU had no material impact on the Company's consolidated financial statements. 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 adoption of this ASU had no material impact on the Company's consolidated financial statements. 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 adoption of this ASU had no material impact on the Company's 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 adoption of this ASU had no material impact on the Company's 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 adoption of this ASU had no material impact on the Company's consolidated financial statements. |
CRITICAL ACCOUNTING JUDGMENT AN
CRITICAL ACCOUNTING JUDGMENT AND ESTIMATES | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Critical accounting judgments and estimates | (a) Significant judgments Preparation of the consolidated 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 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 and value-added taxes receivable 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. The Company has receivables due from the Argentinean government for value-added taxes. Significant estimates and judgments are involved in the assessment of recoverability of these receivables. Changes in management's impairment assumptions may result in an additional impairment provision, or a reduction to any previously recorded impairment provision, with the impact recorded in profit and loss. 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. 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. (b) Estimation uncertainty The preparation of the consolidated 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 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. 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 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. Silver and gold recovery From time to time, some of the Company's sales of concentrate are made under provisional pricing arrangements where the final sale prices are determined by quoted market prices in a period subsequent to the date of sale. In these circumstances, sales are recorded at period end based on latest information about prices and quantities available to management for the expected date of final settlement. |
INVENTORY
INVENTORY | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Inventory | June 30, 2018 December 31, 2017 Silver concentrate $ 1,425,920 $ 128,894 Ore stockpiles - 98,210 Materials and supplies 89,058 106,216 $ 1,514,978 $ 333,320 |
MINERAL PROPERTIES
MINERAL PROPERTIES | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
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. (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. As at June 30, 2018 this project has a carrying amount of $Nil (2017 - $Nil) on the consolidated balance sheet. (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. As at June 30, 2018 this project has a carrying amount of $Nil (2017 - $Nil) on the consolidated balance sheet |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
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% (2017 – 10%) and an inflation rate of 2% (2017 – 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 estimated life of 8 years was determined for the Martha plant and equipment because it is the Company's intention to continue using these assets to process future mineral extraction from the La Josefina property. As the distance between the two properties is relatively minor, the floatation plant and mining equipment will serve both projects. The following table describes all of the changes to the Company's asset retirement obligation liability: June 30, December 31, 2018 2017 Asset retirement obligation at beginning of year $ 773,436 $ 721,695 Foreign exchange (4,200 ) (16,327 ) Accretion expense 37,318 68,068 Asset retirement obligation at end of period $ 806,554 $ 773,436 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Property, Plant and Equipment | Land Plant Buildings Vehicles and Equipment Total Cost Balance at December 31, 2016 $ 1,035,397 $ 2,631,646 $ 117,500 $ 2,352,222 $ 6,136,765 Additions - 792,055 - 472,244 1,264,299 Balance at December 31, 2017 1,035,397 3,423,701 117,500 2,824,466 7,401,064 Additions - - - 13,559 13,559 Balance at June 30, 2018 $ 1,035,397 $ 3,423,701 $ 117,500 $ 2,838,025 $ 7,414,623 Accumulated amortization Balance at December 31, 2016 $ - $ - $ - $ 1,201,982 $ 1,201,982 Depreciation for the year - 753,391 29,375 382,826 1,165,592 Balance at December 31, 2017 - 753,391 29,375 1,584,808 2,367,574 Depreciation for the year - 502,261 19,583 283,822 805,666 Balance at June 30, 2018 $ - $ 1,255,652 $ 48,958 $ 1,868,630 $ 3,173,240 Net book value At December 31, 2017 $ 1,035,397 $ 2,670,310 $ 88,125 $ 1,239,658 $ 5,033,490 At June 30, 2018 $ 1,035,397 $ 2,168,049 $ 68,542 $ 969,395 $ 4,241,383 |
PERFORMANCE BOND
PERFORMANCE BOND | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
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, 2018, the value of the bond decreased to $343,214 (December 31, 2017 - $434,639). The change in the face value of the performance bond of $91,425 for the six months ended June 30, 2018 (December 31, 2017- $53,284) is recorded as other comprehensive loss in the Company's consolidated statement of operations 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 September 2010 the Company used the bond to secure the La Valenciana project, an additional Fomicruz exploration project. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Accounts receivable | June 30, December 31, 2018 2017 Receivable from sale of concentrate $ 91,772 $ 1,144,710 Value added tax ("VAT") recoverable 987,724 1,000,120 Total accounts receivable $ 1,079,496 $ 2,144,830 |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Accounts payable | Note June 30, December 31, 2018 2017 Accounts payables due to related parties 16 $ 4,984,655 $ 4,410,894 Trade accounts payable and accrued liabilities 1,507,751 2,262,425 Total accounts payable and accrued liabilities $ 6,492,406 $ 6,673,319 |
LOAN PAYABLE AND LONG-TERM DEBT
LOAN PAYABLE AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Loan Payable and long-term debt | The Following is a summary of all loans. June 30, December 31, 2018 2017 Unsecured loan payable to related party at 8% interest per annum, due 2022 1 $ 1,615,445 $ 1,731,022 Unsecured loan payable to related party at 8% interest per annum, due on demand (Note 16) 999,861 700,000 Loan payable, repayable in monthly installments of $15,000 per dry metric ton of concentrate, with interest at 6% per annum, secured by concentrate, due 2018 2 400,620 - Loan payable, repayable in monthly installments ranging between $3,000 and $15,000 per dry metric ton of concentrate, with interest at 6% per annum, secured by concentrate, due 2018 700,000 - $ 3,715,926 $ 2,431,022 Less current portion (2,650,664 ) (1,062,428 ) Long-term debt $ 1,065,262 $ 1,368,594 Principal payments on long-term debt are due as follows: Year ending December 31, 2018 $ 362,428 2019 $ 375,510 2020 $ 394,590 2021 $ 414,910 2022 $ 68,007 1 2 |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
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, 2018 December 31, 2017 Number Amount Number Amount Balance, beginning of period 63,588,798 $ 24,695,186 63,588,798 $ 24,695,186 Balance, end of period 63,588,798 $ 24,695,186 63,588,798 $ 24,695,186 Warrants Six months ended Year ended June 30, 2018 December 31, 2017 Number Amount Number Amount Balance, beginning of period 48,862,500 $ 735,152 48,862,500 $ 735,152 Balance, end of period 48,862,500 $ 735,152 48,862,500 $ 735,152 Common share issuances: No common shares were issued during the six months ended June 30, 2018 (December 31, 2017 – None). 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, 2018 Stock options $ 0.15 - $1.00 4,360,000 2.80 $ 0.21 4,360,000 June 30, 2018 December 31, 2017 Number of options Weighted Average Price (CAD) Number of options Weighted Average Price (CAD) Balance, beginning of period 4,380,000 $ 0.21 4,225,000 $ 0.24 Granted - $ 0.00 200,000 $ 0.20 Expiration of stock options (20,000 ) $ 1.00 (45,000 ) $ 3.00 Balance, end of period 4,360,000 $ 0.21 4,380,000 $ 0.24 On June 14, 2017, 200,000 stock options were granted to the Company's controller with an exercise price of $CAD 0.20 and expiry date of June 14, 2022. The $34,528 fair value of the options granted were calculated using the Black-Scholes option pricing model and using the following assumptions: Year ended December 31, 2017 2017 Expected volatility 235.10 % Expected life (years) 5 Expected dividend yield 0 % Forfeiture rate 0 % Stock price $CAD 0.23 On February 27, 2017, 45,000 options with an exercise price of CAD 3.00 expired. On April 23, 208, 20,000 options with an exercise price of CAD 1.000 expired. As at June 30, 2018, the Company's outstanding and exercisable stock options had an aggregate intrinsic value of $395,922 (December 31, 2017 - $316,717). 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 2.13 $ 0.07 June 30, 2018 December 31, 2017 Number of warrants Weighted Average Price (CAD) Number of warrants Weighted Average Price (CAD) Balance, beginning of period 48,862,500 $ 0.07 48,862,500 $ 0.07 Warrants - - - $ 0.00 Balance, end of period 48,862,500 $ 0.07 48,862,500 $ 0.07 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Related Party Transactions | During the six months ended June 30, 2018, the Company incurred $93,700 (2017- $102,229) in professional fees expense from a key managerial person of CCSA and $12,000 (2017 -$Nil) relating to property rental recorded in silver and gold recovery. Included in accounts payable and accrued liabilities as at June 30, 2018 was $266,089 (December 31, 2017- $254,089) owing to the President of CCSA for professional geological fees and property rental. During the six months ended June 30, 2018, the Company incurred $34,848 (2017- $31,692) in professional fees expense relating to the accounting services of a key managerial person of CCSA. Included in accounts payable and accrued liabilities as at June 30, 2018, the Company had a payable owing to the director of CCSA of $Nil (December 31, 2017- $15,810). During the six months ended June 30, 2018, the Company incurred $109,643 (2017- $192,493) in administrative and office expenses relating to the rental of office space and various administrative services and expenses payable to an entity controlled by a director of the Company. During the period ended June 30, 2018, this entity advanced funds to the Company of $856,650 (2017- $1,586,991) for general administrative purposes. The advances accrue interest at 7% per annum compounding on a monthly basis and are unsecured. During the six months ended June 30, 2018, the Company incurred $137,447 (2017 - $101,610) in interest expense on these advances. As at June 30, 2018, the combined balance of payables for services, advances, and interest due to this entity was $4,688,938 (December 31, 2017 - $3,658,431), which is included in accounts payable and accrued liabilities. The Company has a loan balance to a director of the Company of $1,615,445 (December 31, 2017- $1,731,022). During the six months ended June 30, 2018 the Company made payments of $115,577 (2017 -$98,132) on the loan principle. During the year ended December 31, 2017, this director modified the repayment terms of the loan and subsequently this loan was reclassified to long-term (see note 14). During the six months ended June 30, 2018, the Company incurred interest expense of $70,180 (2017- $65,593) of which $26,051 is included in interest payable at June 30, 2018 (December 31, 2017- $151,024). The Company has a loan balance to a director of the Company of $994,861 (December 31, 2017- $700,000). During the six months ended June 30, 2018 the Company received advances of $300,000 (2017- $1,000,000) and made payments of $5,139 (2017 -$1,000,000) on the loan principle. During the six months ended June 30, 2018, the Company incurred interest expense of $34,498 (2017- $5,699) of which $21,882 is included in interest payable at June 30, 2018 (December 31, 2017- $2,282). Included in accounts payable and accrued liabilities as at June 30, 2018, are amounts owing to a key managerial person of the Company for consulting fees of $79,613 (December 31, 2017- $98,549). Included in accounts payable and accrued liabilities as at June 30, 2018, are amounts owing to a director of the Company for compensation of $84,000 (December 31, 2017– $84,000). 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: Six months ended June 30, 2018 June 30, 2017 Salaries and benefits $ 137,430 $ 58,526 Professional fees 141,689 109,471 $ 279,119 $ 167,997 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Financial Instruments | The Company's financial instruments consist of cash, accounts receivable, performance bond, accounts payable and accrued liabilities, transaction taxes payable, loan payable, interest payable, and long-term debt. 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: · Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an ongoing basis. · Level 2: inputs, other than quoted prices, that are observable, either directly or indirectly. Level 2 valuations are based on inputs, including quoted forward prices for commodities, market interest rates, and volatility factors, which can be observed or corroborated in the market place. · Level 3: inputs are less observable, unavoidable or where the observable data does not support the majority of the instruments' fair value. Fair value As at June 30, 2017, there were no changes in the levels in comparison to December 31, 2017. The fair values of financial instruments are summarized as follows: June 30, 2018 June 30, 2017 Carrying amount Fair value Carrying amount Fair value $ $ $ $ Financial Assets FVTPL Cash (Level 1) 147,586 147,586 138,921 138,921 Available for sale Performance bond (Level 1) 343,214 343,214 376,636 376,636 Loans and receivables Accounts receivable 1,079,496 1,079,496 792,611 792,611 Financial Liabilities Other financial liabilities Bank indebtedness 49,999 49,999 50,000 - Accounts payable and accrued liabilities 6,492,406 6,492,406 4,790,859 4,790,859 Purchase price payable - - 1,500,000 1,500,000 Transaction taxes payable 15,407 15,407 124,641 124,641 Interest payable 200,594 200,594 66,349 66,349 Loan payable 2,650,664 2,650,664 3,431,892 3,431,892 Long-term debt 1,615,445 1,615,445 - - 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, accounts payable and accrued liabilities, transaction taxes payable, loan payable, interest payable, and long-term debt approximate their fair value because of the short-term nature of these instruments and because long-term debt approximates a market rate of interest. 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 trade receivables and VAT recoverable and are not considered subject to significant risk, because the amounts are due from a government and a customer who is considered credit worthy. The Company has concentrations of credit risk with respect to its trade receivables, the majority of which are concentrated geographically in Argentina amongst a small number of customers. As at June 30, 2018, the Company had one customer whose trade receivable of $91,772 (December 31, 2017 – $1,144,710) accounted for greater than 10% of the total trade receivables. The Company controls credit risk through monitoring procedures, and by performing credit evaluations of its customers, but generally does not require collateral to secure accounts receivable. The Company has concentrations in the volume of sales it made to customers. For the period ended June 30, 2017, the Company made sales of $913,454 to one customer which accounted for greater than 10% of the total silver and gold recovery, net of expenses (2017 - $498,529). 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 $147,586 (December 31, 2017- $78,145) at financial institutions, where $Nil (December 31, 2017- $Nil) is in excess of federally insured limits. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
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. All of the Company's silver and gold recovery arose from sales made in Argentina. |
COMMITMENTS AND PROVISION
COMMITMENTS AND PROVISION | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Commitments and Provision | 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 with an option to renew for a second three-year term. |
SILVER RECOVERY
SILVER RECOVERY | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Silver Recovery | Silver recovery includes the sales from concentrate sold during the six months ended June 30, 2018 from the Martha Mine project of $913,454 (2017 - $4,255,230) Silver recovery revenues have been reported net of direct operating expenses of $523,459 for the six months ended June 30, 2018 (2017 -$1,106,050). Accounts receivable include $91,772 (December 31, 2017 -$1,144,710) for the sales of concentrate. |
BANK INDEBTEDNESS
BANK INDEBTEDNESS | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Bank Indebtedness | The Company has a variable rate line of credit available for $50,000 with interest charged at the lender's Index Rate plus 1.0%, with a floor of 4.25%. As at June 30, 2018 the balance of bank indebtedness was $49,999 (December 31, 2017- $Nil). |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Subsequent Events | Subsequent to June 30, 2018, the Company had sales of silver concentrate of approximately $580,000. Funds from this shipment were used to repay $400,620 of loan payable (Note 14). |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | June 30, 2018 December 31, 2017 Silver concentrate $ 1,425,920 $ 128,894 Ore stockpiles - 98,210 Materials and supplies 89,058 106,216 $ 1,514,978 $ 333,320 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of change in asset retirement obligation | June 30, December 31, 2018 2017 Asset retirement obligation at beginning of year $ 773,436 $ 721,695 Foreign exchange (4,200 ) (16,327 ) Accretion expense 37,318 68,068 Asset retirement obligation at end of period $ 806,554 $ 773,436 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, plant, and equipment | Land Plant Buildings Vehicles and Equipment Total Cost Balance at December 31, 2016 $ 1,035,397 $ 2,631,646 $ 117,500 $ 2,352,222 $ 6,136,765 Additions - 792,055 - 472,244 1,264,299 Balance at December 31, 2017 1,035,397 3,423,701 117,500 2,824,466 7,401,064 Additions - - - 13,559 13,559 Balance at June 30, 2018 $ 1,035,397 $ 3,423,701 $ 117,500 $ 2,838,025 $ 7,414,623 Accumulated amortization Balance at December 31, 2016 $ - $ - $ - $ 1,201,982 $ 1,201,982 Depreciation for the year - 753,391 29,375 382,826 1,165,592 Balance at December 31, 2017 - 753,391 29,375 1,584,808 2,367,574 Depreciation for the year - 502,261 19,583 283,822 805,666 Balance at June 30, 2018 $ - $ 1,255,652 $ 48,958 $ 1,868,630 $ 3,173,240 Net book value At December 31, 2017 $ 1,035,397 $ 2,670,310 $ 88,125 $ 1,239,658 $ 5,033,490 At June 30, 2018 $ 1,035,397 $ 2,168,049 $ 68,542 $ 969,395 $ 4,241,383 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounts Receivable, Net [Abstract] | |
Schedule of receivables | June 30, December 31, 2018 2017 Receivable from sale of concentrate $ 91,772 $ 1,144,710 Value added tax ("VAT") recoverable 987,724 1,000,120 Total accounts receivable $ 1,079,496 $ 2,144,830 |
ACCOUNTS PAYABLE (Tables)
ACCOUNTS PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounts Payable | |
Schedule of payables | Note June 30, December 31, 2018 2017 Accounts payables due to related parties 16 $ 4,984,655 $ 4,410,894 Trade accounts payable and accrued liabilities 1,507,751 2,262,425 Total accounts payable and accrued liabilities $ 6,492,406 $ 6,673,319 |
LOAN PAYABLE AND LONG-TERM DE34
LOAN PAYABLE AND LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans Payable [Abstract] | |
Summary of all loans | June 30, December 31, 2018 2017 Unsecured loan payable to related party at 8% interest per annum, due 2022 1 $ 1,615,445 $ 1,731,022 Unsecured loan payable to related party at 8% interest per annum, due on demand (Note 16) 999,861 700,000 Loan payable, repayable in monthly installments of $15,000 per dry metric ton of concentrate, with interest at 6% per annum, secured by concentrate, due 2018 2 400,620 - Loan payable, repayable in monthly installments ranging between $3,000 and $15,000 per dry metric ton of concentrate, with interest at 6% per annum, secured by concentrate, due 2018 700,000 - $ 3,715,926 $ 2,431,022 Less current portion (2,650,664 ) (1,062,428 ) Long-term debt $ 1,065,262 $ 1,368,594 |
Principal payments on long-term debt | Year ending December 31, 2018 $ 362,428 2019 $ 375,510 2020 $ 394,590 2021 $ 414,910 2022 $ 68,007 1 2 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of common stock outstanding | Common Shares Six months ended Year ended June 30, 2018 December 31, 2017 Number Amount Number Amount Balance, beginning of period 63,588,798 $ 24,695,186 63,588,798 $ 24,695,186 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, 2018 December 31, 2017 Number Amount Number Amount Balance, beginning of period 48,862,500 $ 735,152 48,862,500 $ 735,152 Balance, end of period 48,862,500 $ 735,152 48,862,500 $ 735,152 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding | Range of Exercise prices (CAD) Number outstanding Weighted average life (years) Weighted average exercise price (CAD) Number exercisable on June 30, 2018 Stock options $ 0.15 - $1.00 4,360,000 2.80 $ 0.21 4,360,000 |
Schedule of Share-based Compensation, Stock Options, Activity | June 30, 2018 December 31, 2017 Number of options Weighted Average Price (CAD) Number of options Weighted Average Price (CAD) Balance, beginning of period 4,380,000 $ 0.21 4,225,000 $ 0.24 Granted - $ 0.00 200,000 $ 0.20 Expiration of stock options (20,000 ) $ 1.00 (45,000 ) $ 3.00 Balance, end of period 4,360,000 $ 0.21 4,380,000 $ 0.24 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Year ended December 31, 2017 2017 Expected volatility 235.10 % Expected life (years) 5 Expected dividend yield 0 % Forfeiture rate 0 % Stock price $CAD 0.23 |
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 2.13 $ 0.07 |
Schedule of Warrant Activity 2 | June 30, 2018 December 31, 2017 Number of warrants Weighted Average Price (CAD) Number of warrants Weighted Average Price (CAD) Balance, beginning of period 48,862,500 $ 0.07 48,862,500 $ 0.07 Warrants - - - $ 0.00 Balance, end of period 48,862,500 $ 0.07 48,862,500 $ 0.07 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Six months ended June 30, 2018 June 30, 2017 Salaries and benefits $ 137,430 $ 58,526 Professional fees 141,689 109,471 $ 279,119 $ 167,997 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement | June 30, 2018 June 30, 2017 Carrying amount Fair value Carrying amount Fair value $ $ $ $ Financial Assets FVTPL Cash (Level 1) 147,586 147,586 138,921 138,921 Available for sale Performance bond (Level 1) 343,214 343,214 376,636 376,636 Loans and receivables Accounts receivable 1,079,496 1,079,496 792,611 792,611 Financial Liabilities Other financial liabilities Bank indebtedness 49,999 49,999 50,000 - Accounts payable and accrued liabilities 6,492,406 6,492,406 4,790,859 4,790,859 Purchase price payable - - 1,500,000 1,500,000 Transaction taxes payable 15,407 15,407 124,641 124,641 Interest payable 200,594 200,594 66,349 66,349 Loan payable 2,650,664 2,650,664 3,431,892 3,431,892 Long-term debt 1,615,445 1,615,445 - - |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net loss | $ (2,068,711) | $ 611,057 | $ 1,655,914 |
Accumulated deficit | $ (38,062,367) | $ (35,993,656) |
INVENTORY (Details)
INVENTORY (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Inventories | $ 1,514,978 | $ 333,320 |
Silver concentrate | ||
Inventories | 1,425,920 | 128,894 |
Ore stockpiles | ||
Inventories | 0 | 98,210 |
Materials and supplies | ||
Inventories | $ 89,058 | $ 106,216 |
ASSET RETIREMENT OBLIGATION (De
ASSET RETIREMENT OBLIGATION (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation at beginning of year | $ 773,436 | $ 721,695 |
Foreign exchange | (4,200) | (16,327) |
Accretion expense | 37,318 | 68,068 |
Asset retirement obligation at end of year | $ 806,554 | $ 773,436 |
PROPERTY, PLANT AND EQUIPMENT41
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Property, plant, and equipment, cost, beginning | $ 7,401,064 | $ 6,136,765 | $ 6,136,765 | ||
Additions | 13,559 | 1,264,299 | |||
Property, plant, and equipment, cost, ending | $ 7,414,623 | 7,414,623 | 7,401,064 | ||
Accumulated amortization, beginning | 2,367,574 | 1,201,982 | 1,201,982 | ||
Depreciation for the year | 403,398 | $ 300,805 | 805,666 | 597,338 | 1,165,592 |
Accumulated amortization, ending | 3,173,240 | 3,173,240 | 2,367,574 | ||
Net book value | 4,241,383 | 4,241,383 | 5,033,490 | ||
Land | |||||
Property, plant, and equipment, cost, beginning | 1,035,397 | 1,035,397 | 1,035,397 | ||
Additions | 0 | 0 | |||
Property, plant, and equipment, cost, ending | 1,035,397 | 1,035,397 | 1,035,397 | ||
Accumulated amortization, beginning | 0 | 0 | 0 | ||
Depreciation for the year | 0 | 0 | |||
Accumulated amortization, ending | 0 | 0 | 0 | ||
Net book value | 1,035,397 | 1,035,397 | 1,035,397 | ||
Plant | |||||
Property, plant, and equipment, cost, beginning | 3,423,701 | 2,631,646 | 2,631,646 | ||
Additions | 0 | 792,055 | |||
Property, plant, and equipment, cost, ending | 3,423,701 | 3,423,701 | 3,423,701 | ||
Accumulated amortization, beginning | 753,391 | 0 | 0 | ||
Depreciation for the year | 502,261 | 753,391 | |||
Accumulated amortization, ending | 1,255,652 | 1,255,652 | 753,391 | ||
Net book value | 2,168,049 | 2,168,049 | 2,670,310 | ||
Buildings | |||||
Property, plant, and equipment, cost, beginning | 117,500 | 117,500 | 117,500 | ||
Additions | 0 | 0 | |||
Property, plant, and equipment, cost, ending | 117,500 | 117,500 | 117,500 | ||
Accumulated amortization, beginning | 29,375 | 0 | 0 | ||
Depreciation for the year | 19,583 | 29,375 | |||
Accumulated amortization, ending | 48,958 | 48,958 | 29,375 | ||
Net book value | 68,542 | 68,542 | 88,125 | ||
Vehicles and Equipment | |||||
Property, plant, and equipment, cost, beginning | 2,824,466 | 2,352,222 | 2,352,222 | ||
Additions | 13,559 | 472,244 | |||
Property, plant, and equipment, cost, ending | 2,838,025 | 2,838,025 | 2,824,466 | ||
Accumulated amortization, beginning | 1,584,808 | $ 1,201,982 | 1,201,982 | ||
Depreciation for the year | 283,822 | 382,826 | |||
Accumulated amortization, ending | 1,868,630 | 1,868,630 | 1,584,808 | ||
Net book value | $ 969,395 | $ 969,395 | $ 1,239,658 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts receivable | $ 1,079,496 | $ 2,144,830 |
Receivable from sale of concentrate | ||
Accounts receivable | 91,772 | 1,144,710 |
Value added tax ("VAT") recoverable | ||
Accounts receivable | $ 987,724 | $ 1,000,120 |
ACCOUNTS PAYABLE (Details)
ACCOUNTS PAYABLE (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts Receivable Details Abstract | ||
Accounts payables due to related parties | $ 4,984,655 | $ 4,410,894 |
Trade accounts payable and accrued liabilities | 1,507,751 | 2,262,425 |
Accounts payable | $ 6,492,406 | $ 6,673,319 |
LOAN PAYABLE AND LONG-TERM DE44
LOAN PAYABLE AND LONG-TERM DEBT (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | |
Loans Payable [Abstract] | |||
Unsecured loan payable to related party at 8% interest per annum, due 20221 (Note 16) | [1] | $ 1,615,445 | $ 1,731,022 |
Unsecured loan payable to related party at 8% interest per annum, due on demand (Note 16) | 999,861 | 700,000 | |
Loan payable, repayable in monthly installments of $15,000 per dry metric ton of concentrate, with interest at 6% per annum, secured by concentrate, due 2018 (Note 22) | [2] | 400,620 | 0 |
Loan payable, repayable in monthly installments ranging between $3,000 and $15,000 per dry metric ton of concentrate, with interest at 6% per annum, secured by concentrate, due 2018 | 700,000 | 0 | |
Loans | 3,715,926 | 2,431,022 | |
Less current portion | (2,650,664) | (1,062,428) | |
Long-term debt | $ 1,065,262 | $ 1,368,594 | |
[1] | During the year ended December 31, 2017, the maturity date of the loan payable was extended to May 9, 2022. The modification of the loan payable did not result in an extinguishment in accordance with ASC 470-50. During the year ended December 31, 2017 loan payable was re-classified as long-term debt. | ||
[2] | Subsequent to June 30, 2018, loan was repaid. (Note 22) |
LOAN PAYABLE AND LONG-TERM DE45
LOAN PAYABLE AND LONG-TERM DEBT (Details 1) | Jun. 30, 2018USD ($) |
Loans Payable [Abstract] | |
2,018 | $ 362,428 |
2,019 | 375,510 |
2,020 | 394,590 |
2,021 | 414,910 |
2,022 | $ 68,007 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Stockholders' Equity Note [Abstract] | ||
Shares issued | 63,588,798 | 63,588,798 |
Value of shares issued | $ 24,695,186 | $ 24,695,186 |
CAPITAL STOCK (Details 1)
CAPITAL STOCK (Details 1) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Stockholders' Equity Note [Abstract] | ||
Warrants issued | 48,862,500 | 48,862,500 |
Value of warrants issued | $ 735,152 | $ 735,152 |
CAPITAL STOCK (Details 2)
CAPITAL STOCK (Details 2) - Stock options - $ / shares | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Range of exercise prices (CAD) | $0.15 - $1.00 | ||
Number oustanding | 4,360,000 | 4,380,000 | 4,225,000 |
Weighted average life (years) | 2 years 9 months 18 days | ||
Weighted average exercise price (CAD) | $ .21 | $ 0.24 | $ 0.24 |
Number exercisable on June 30, 2018 | 4,360,000 |
CAPITAL STOCK (Details 3)
CAPITAL STOCK (Details 3) - Stock options - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Number of options outstanding, beginning | 4,380,000 | 4,225,000 |
Number of options granted | 0 | 200,000 |
Number of options expired | (20,000) | (45,000) |
Number of options outstanding, ending | 4,360,000 | 4,380,000 |
Weighted average exercise price outstanding, beginning | $ 0.24 | $ 0.24 |
Weighted average exercise price granted | .00 | 0.20 |
Weighted average exercise price expired | 1 | 3 |
Weighted average exercise price outstanding, ending | $ .21 | $ 0.24 |
CAPITAL STOCK (Details 4)
CAPITAL STOCK (Details 4) | 12 Months Ended |
Dec. 31, 2017$ / shares | |
Stockholders' Equity Note [Abstract] | |
Expected volatility | 235.10% |
Expected life (years) | 5 years |
Expected dividend yield | 0.00% |
Forfeiture rate | 0.00% |
Stock price | $ 0.23 |
CAPITAL STOCK (Details 5)
CAPITAL STOCK (Details 5) - Warrants - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Range of exercise prices (CAD) | $0.05 - $0.40 | |
Number outstanding | 48,862,500 | 48,862,500 |
Weighted average life (years) | 2 years 1 month 17 days | |
Weighted average exercise price | $ .07 | $ .07 |
CAPITAL STOCK (Details 6)
CAPITAL STOCK (Details 6) - Warrants - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Number of warrants outstanding | 48,862,500 | 48,862,500 |
Weighted average exercise price outstanding | $ .07 | $ .07 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transactions [Abstract] | ||
Salaries and benefits | $ 137,430 | $ 58,526 |
Professional fees | 141,689 | 109,471 |
Total | $ 279,119 | $ 167,997 |
RELATED PARTY TRANSACTIONS (D54
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||
Related Party Transactions [Abstract] | ||||
Professional fees, due to officer or stockholder | $ 93,700 | $ 102,229 | ||
Professional fees, property rental | 12,000 | 0 | ||
Professional and contract service expense, due to officer or stockholder | 266,089 | 254,089 | ||
Professional fees, accounting services | 34,848 | 31,692 | ||
Accounts payable, related parties | 0 | $ 15,810 | ||
Administrative expenses | 109,643 | 192,493 | ||
Advances from related party | 856,650 | 1,586,991 | ||
Interest expense, advances | 137,447 | 101,610 | ||
Loans payable, related party | [1] | 1,615,445 | 1,731,022 | |
Repayment of loans payable | 115,577 | 98,132 | ||
Interest expense, loans payable | 70,180 | 65,593 | ||
Due to director | 994,861 | 700,000 | ||
Advances from director | 300,000 | 1,000,000 | ||
Repayment of advances | 5,139 | 1,000,000 | ||
Interest expense, director advances | 34,498 | $ 5,699 | ||
Accrued salaries, related party, other | 79,613 | 98,549 | ||
Accrued salaries, related party | $ 84,000 | $ 84,000 | ||
[1] | During the year ended December 31, 2017, the maturity date of the loan payable was extended to May 9, 2022. The modification of the loan payable did not result in an extinguishment in accordance with ASC 470-50. During the year ended December 31, 2017 loan payable was re-classified as long-term debt. |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Other financial liabilities | ||||
Interest payable | $ 200,594 | $ 151,024 | ||
Loan payable | [1] | 1,615,445 | 1,731,022 | |
Long-term debt | 2,650,664 | $ 1,062,428 | ||
Fair Value [Member] | ||||
Financial Assets | ||||
Cash (Level 1) | 147,586 | $ 138,921 | ||
Available for sale | ||||
Performance bond (Level 1) | 343,214 | 376,636 | ||
Loans and receivables | ||||
Accounts receivable | 1,079,496 | 792,611 | ||
Other financial liabilities | ||||
Bank indebtedness | 49,999 | 0 | ||
Accounts payable and accrued liabilities | 6,492,406 | 4,790,859 | ||
Purchase price payable | 0 | 1,500,000 | ||
Transaction taxes payable | 15,407 | 124,641 | ||
Interest payable | 200,594 | 66,349 | ||
Loan payable | 2,650,664 | 3,431,892 | ||
Long-term debt | 1,615,445 | 0 | ||
Carrying Amount [Member] | ||||
Financial Assets | ||||
Cash (Level 1) | 147,586 | 138,921 | ||
Available for sale | ||||
Performance bond (Level 1) | 343,214 | 376,636 | ||
Loans and receivables | ||||
Accounts receivable | 1,079,496 | 792,611 | ||
Other financial liabilities | ||||
Bank indebtedness | 49,999 | 50,000 | ||
Accounts payable and accrued liabilities | 6,492,406 | 4,790,859 | ||
Purchase price payable | 0 | 1,500,000 | ||
Transaction taxes payable | 15,407 | 124,641 | ||
Interest payable | 200,594 | 66,349 | ||
Loan payable | 2,650,664 | 3,431,892 | ||
Long-term debt | $ 1,615,445 | $ 0 | ||
[1] | During the year ended December 31, 2017, the maturity date of the loan payable was extended to May 9, 2022. The modification of the loan payable did not result in an extinguishment in accordance with ASC 470-50. During the year ended December 31, 2017 loan payable was re-classified as long-term debt. |
FINANCIAL INSTRUMENTS (Details
FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Instruments, Owned, at Fair Value [Abstract] | ||
Cash | $ 147,586 | $ 78,145 |