Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017CAD ($)shares | |
Document And Entity Information | |
Entity Registrant Name | 37 CAPITAL INC |
Entity Central Index Key | 825,171 |
Document Type | 20-F/A |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | true |
Amendment Description | This Amendment No. 1 to the Annual Report on Form 20-F of 37 Capital Inc. amends 37 Capital’s Annual Report on Form 20-F for the year ended December 31, 2017 (the “Original 20-F”), which was filed with the Securities and Exchange Commission on May 11, 2018. 37 Capital is filing this Amendment No. 1 solely to furnish the Interactive Data File disclosed as Exhibit 101 in accordance with Rule 405 of Regulation S-T, which was not included in the Original 20-F. Exhibit 101 includes information in eXtensible Business Reporting Language (XBRL). Except as described above, this Amendment No. 1 does not amend any information set forth in the Original 20-F, and 37 Capital has not updated disclosures included therein to reflect any events that occurred subsequent to May 11, 2018. Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed furnished and not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are otherwise not subject to liability under those sections. |
Current Fiscal Year End Date | --12-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Public Float | $ | $ 844,052 |
Entity Common Stock, Shares Outstanding | shares | 6,492,709 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current | ||
Cash | $ 891 | $ 1,312 |
GST receivable | 2,119 | 4,608 |
Total current assets | 3,010 | 5,920 |
Mineral Property Interests (note 6) | 1 | 1 |
Investment (note 7) | 1 | 1 |
Total Assets | 3,012 | 5,922 |
Current | ||
Accounts payable and accrued liabilities (note 8) | 200,400 | 163,240 |
Due to related parties | 134,287 | 422,648 |
Refundable subscription (note 10) | 10,000 | 10,000 |
Loan payable (note 11) | 103,924 | 103,924 |
Convertible debentures (note 12) | 504,191 | 470,215 |
Total Liabilities | 952,802 | 1,170,027 |
Stockholders' Deficiency | ||
Capital Stock (note 13) | 25,770,450 | 25,372,201 |
Equity Portion of Convertible Debentures Reserve (note 12) | 33,706 | 33,706 |
Reserves | 5,115 | 5,115 |
Deficit | (26,759,061) | (26,575,127) |
Total Stockholders' Deficiency | (949,790) | (1,164,105) |
Total Liabilities and Stockholders' Deficiency | $ 3,012 | $ 5,922 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - CAD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expenses | |||
Office (note 9) | $ 111,434 | $ 108,617 | $ 110,852 |
Finance and interest (notes 9 and 12) | 42,372 | 55,402 | 81,125 |
Management fees (note 9) | 0 | 35,000 | 60,000 |
Legal, accounting and audit | 30,246 | 112,693 | 40,672 |
Rent (note 9) | 28,627 | 28,298 | 29,403 |
Regulatory and transfer fees | 6,051 | 5,207 | 6,521 |
Consulting | 0 | 0 | 4,250 |
Telephone, travel, meals and entertainment | 823 | 1,985 | 2,170 |
Shareholder communication | 758 | 761 | 0 |
Total expenses | (220,311) | (347,963) | (334,993) |
Other Comprehensive Loss | 36,377 | 0 | 0 |
Total Comprehensive Loss | $ (183,934) | $ (347,963) | $ (334,993) |
Basic and Diluted Loss per Common Share | $ (0.07) | $ (0.17) | $ (0.31) |
Weighted Average Number of Common Shares Outstanding | 2,782,996 | 2,056,795 | 1,067,724 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficiency) - CAD ($) | Issued Capital | Equity Portion of Convertible Debentures Reserve | Warrants | Options | Retained Earnings | Total |
Beginning balance, Amount at Dec. 31, 2014 | $ 25,272,401 | $ 5,712 | $ 5,115 | $ 31,236 | $ (25,840,698) | $ (526,234) |
Beginning balance, Shares at Dec. 31, 2014 | 1,067,724 | |||||
Net loss | $ 0 | 0 | 0 | 0 | (334,993) | (334,993) |
Convertible debentures | 0 | 27,994 | 0 | 0 | 0 | 27,994 |
Issue of common shares and warrants, net of share issue costs, Amount | 0 | |||||
Ending balance, Amount at Dec. 31, 2015 | $ 25,272,401 | 33,706 | 5,115 | 31,236 | (26,175,691) | (833,233) |
Ending balance, Shares at Dec. 31, 2015 | 1,067,724 | |||||
Net loss | $ 0 | 0 | 0 | 0 | (347,963) | (347,963) |
Issue of common shares and warrants, net of share issue costs, Amount | $ 99,800 | 0 | 0 | 0 | 0 | 99,800 |
Issue of common shares and warrants, net of share issue costs, Shares | 1,000,000 | |||||
Expiry of options | $ 0 | 0 | 0 | (31,236) | 31,236 | 0 |
Dividend upon redemption of reorganization shares | 0 | 0 | 0 | 0 | (82,709) | (82,709) |
Ending balance, Amount at Dec. 31, 2016 | $ 25,372,201 | 33,706 | 5,115 | 0 | (26,575,127) | (1,164,105) |
Ending balance, Shares at Dec. 31, 2016 | 2,067,724 | |||||
Net loss | $ 0 | 0 | 0 | 0 | (183,934) | (183,934) |
Issue of common shares and warrants, net of share issue costs, Amount | 0 | |||||
Issue of common shares for debt, Amount | $ 398,249 | 0 | 0 | 0 | 0 | 398,249 |
Issue of common shares for debt, Shares | 4,424,985 | |||||
Ending balance, Amount at Dec. 31, 2017 | $ 25,770,450 | $ 33,706 | $ 5,115 | $ 0 | $ (26,759,061) | $ (949,790) |
Ending balance, Shares at Dec. 31, 2017 | 6,492,709 | 6,492,709 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net loss | $ (183,934) | $ (347,963) | $ (334,993) |
Items not involving cash | |||
Interest expense on convertible debentures | 33,976 | 45,571 | 79,513 |
Net loss after items not involving cash | (149,958) | (302,392) | (255,480) |
Changes in non-cash working capital (Note 14) | 149,537 | 203,121 | 5,837 |
Cash Used in Operating Activities | (421) | (99,271) | (249,643) |
Financing Activities | |||
Issue of common shares and warrants, net of share issuance costs | 0 | 99,800 | 0 |
Issue of convertible debentures | 0 | 0 | 250,000 |
Cash Provided by Financing Activities | 0 | 99,800 | 250,000 |
Net Increase (Decrease) in Cash | (421) | 529 | 357 |
Cash, Beginning of Year | 1,312 | 783 | |
Cash, End of Year | $ 891 | $ 1,312 | $ 783 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2017 | |
Nature Of Business | |
NATURE OF BUSINESS | 1. NATURE OF BUSINESS 37 Capital Inc. (“37 Capital” or the “Company”) was incorporated on August 24, 1984 in British Columbia, Canada. The principal business of the Company is the acquisition, exploration and, if warranted, the development of natural resource properties. The shares of the Company trade on the Canadian Securities Exchange under the symbol “JJJ”, and trade on the OTCQB tier of the OTC markets in the United States of America under the symbol “HHHEF”. The Company’s office is located at 400 – 570 Granville Street, Vancouver, British Columbia, Canada, V6C 3P1 and its registered office is located at 1055 West Georgia Street, Suite 1500, PO Box 11117, Vancouver, British Columbia, Canada, V6E 4N7. On February 26, 2015, the Company incorporated two wholly-owned subsidiaries, 27 Red Capital Inc. (“27 Red”) and 4 Touchdowns Capital Inc. (“4 Touchdowns”) in British Columbia, Canada. On April 30, 2015, the Company entered into an arrangement agreement with 27 Red and 4 Touchdowns (the “Arrangement”). The Arrangement was completed on February 12, 2016 (note 5). As a result of the completion of the Arrangement, 27 Red and 4 Touchdowns are independent entities and are no longer subsidiaries of the Company. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2017 | |
Going Concern | |
GOING CONCERN | 2. GOING CONCERN These consolidated financial statements have been prepared on the basis of accounting principles applicable to a "going concern", which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. Several adverse conditions cast substantial doubt on the validity of this assumption. The Company has incurred significant losses over the past three fiscal years (2017 - $183,934; 2016 - $347,963; 2015 - $334,993). As of December 31, 2017, the Company has an accumulated deficit of $26,759,061, a working capital deficiency of $949,792 and is in default of its convertible debentures. As the Company has limited resources and no sources of operating cash flow, there can be no assurances whatsoever that sufficient funding will be available for the Company to continue operations for an extended period of time. The application of the going concern concept is dependent upon the Company’s ability to raise sufficient funding to pay creditors and to satisfy its liabilities as they become due. Management is actively engaged in the review and due diligence on opportunities of merit and is seeking to raise the necessary capital to meet its funding requirements. There can be no assurance whatsoever that management’s plan will be successful. If the going concern assumption were not appropriate for these consolidated financial statements then adjustments may be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. Such adjustments could be material. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2017 | |
Basis Of Presentation | |
BASIS OF PRESENTATION | 3. BASIS OF PRESENTATION (a) Statement of compliance These consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Reporting interpretation Committee (“IFRIC”). (b) Basis of presentation These consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value. In addition, these consolidated financial statements have been prepared on the accrual basis, except for cash flow information. These consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. (c) Approval of the consolidated financial statements These consolidated financial statements were approved and authorized for issue by the Board of Directors on April 23, 2018. (d) Reclassification Certain prior period amounts in these consolidated financial statements have been reclassified to conform to current period’s presentation. These reclassifications had no net effect on the consolidated results of operations or financial position for any period presented. (e) Use of estimates and judgments The preparation of consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and judgments 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. Accounting estimates will, by definition, seldom equal the actual results. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The key area of judgment applied in the preparation of the consolidated financial statements that could result in a material adjustment to the carrying amounts of assets and liabilities is as follows: • assessment of the Company’s ability to continue as a going concern and whether there are events or conditions that give rise to significant uncertainty. The key estimates applied in the preparation of the consolidated financial statements that could result in a material adjustment to the carrying amounts of assets and liabilities are as follows: • The provision for income taxes and recognition of deferred income tax assets and liabilities; and • The inputs in determining the liability and equity components of the convertible debentures. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies | |
SIGNIFICANT ACCOUNTING POLICIES | 4. SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies of the Company include the following: (a) Principles of consolidation Subsidiaries are entities controlled by the Company. Control exists when the Company has the power to govern the financial and operating policies of a Company so as to obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable are taken into account. The financial statements of the Company’s former wholly-owned subsidiaries, 27 Red and 4 Touchdowns are included in the consolidated financial statements from the date that control commenced to the date that control ceased. Intercompany balances and transactions and any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. (b) Financial instruments i) Financial assets The Company classifies its financial assets in the following categories: financial assets at fair value through profit or loss (“FVTPL”), loans and receivables, held-to-maturity and available for sale (“AFS”). The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets at recognition. Fair value through profit or loss Financial assets are classified as FVTPL when the financial asset is held-for-trading or it is designated as FVTPL. A financial asset is classified as FVTPL when it has been acquired principally for the purpose of selling in the near future; it is a part of an identified portfolio of financial instruments that the company manages and has an actual pattern of short-term profit-taking or if it is a derivative that is not designated and effective as a hedging instrument. Upon initial recognition, attributable transaction costs are recognized in profit or loss when incurred. Financial instruments at FVTPL are measured at fair value, and changes therein are recognized in profit or loss. The Company classifies its cash as FVTPL. Loans and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are initially recognized at the transaction value and subsequently carried at amortized cost less impairment losses. The impairment loss on receivables is based on a review of all outstanding amounts at year-end. Interest income is recognized by applying the effective interest rate method. Held-to-maturity Held-to-maturity financial assets are recognized on a trade-date basis and are initially measured at fair value using the effective interest rate method. Available-for-sale AFS financial assets are non-derivatives that are either designated as AFS or not classified in any of the other financial assets categories. Changes in the fair value of AFS financial assets other than impairment losses are recognized as other comprehensive loss and classified as a component of equity. The Company classifies its investment as AFS. (ii) Financial liabilities The Company classifies its financial liabilities as FVTPL or other financial liabilities. Fair value through profit or loss Financial liabilities classified as FVTPL include financial liabilities held-for-trading and financial liabilities designated upon initial recognition as FVTPL. Fair value changes on financial liabilities classified as FVTPL are recognized in profit or loss. Other financial liabilities Other financial liabilities are non-derivatives and are recognized initially at fair value, net of transaction costs incurred, and are subsequently stated at amortized cost using the effective interest rate method. Any difference between the amounts originally received, net of transaction costs, and the redemption value is recognized in profit or loss over the period to maturity using the effective interest method. Other financial liabilities are classified as current or non-current based on their maturity date. The Company classifies accounts payable and accrued liabilities, due to related parties, and convertible debentures as other financial liabilities. (iii) Impairment The Company assesses at each reporting date whether there is objective evidence that financial assets, other than those designated as FVTPL, are impaired. When impairment has occurred, the cumulative loss is recognized to profit or loss. For financial assets carried at amortized cost, the amount of the impairment loss recognized is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate. When an AFS financial asset is considered to be impaired, cumulative gains or losses previously recognized in other comprehensive income are reclassified to profit or loss in the period the impairment occurred. (c) Mineral property interests Costs directly related to the acquisition, exploration and evaluation of resource properties are capitalized once the legal rights to explore the resource properties are acquired. If it is determined that capitalized acquisition, exploration and evaluation costs are not recoverable, or the property is abandoned or management has determined impairment in value, the property is written down to its recoverable amount. From time to time, the Company acquires or disposes of properties pursuant to the terms of option agreements. Options are exercisable entirely at the discretion of the optionee, and accordingly, are recorded as mineral property costs or recoveries when the payments are made or received. After costs are recovered, the balance of the payments received is recorded as a gain on option or disposition of mineral property. Once the technical feasibility and commercial viability of the extraction of mineral resources are demonstrable, mineral property interests attributable to that area of interest are first tested for impairment and then reclassified to mining property and development assets within property and equipment. To date, none of the Company’s mineral property interests has demonstrated technical feasibility and commercial viability. The recoverability of the carrying amount of any mineral property interests is dependent on successful development and commercial exploitation or, alternatively, sale of the respective areas of interest. (d) Impairment At the end of each reporting period, the Company’s assets are reviewed to determine whether there is any indication that those assets may be impaired. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. (e) Decommissioning liabilities An obligation to incur decommissioning and site rehabilitation costs occurs when environmental disturbance is caused by exploration, evaluation, development or ongoing production. Decommissioning and site rehabilitation costs arising from the installation of plant and other site preparation work, discounted to their net present value, are provided when the obligation to incur such costs arises and are capitalized into the cost of the related asset. These costs are charged against operations through depreciation of the asset and unwinding of the discount on the provision. Depreciation is included in operating costs while the unwinding of the discount is included as a financing cost. Changes in the measurement of a liability relating to the decommissioning or site rehabilitation of plant and other site preparation work are added to, or deducted from, the cost of the related asset. The costs for the restoration of site damage, which arises during production, are provided at their net present values and charged against operations as extraction progresses. Changes in the measurement of a liability, which arise during production, are charged against operating profit. The discount rate used to measure the net present value of the obligations is the pre-tax rate that reflects the current market assessment of the time value of money and the risks specific to the obligation. To date the Company does not have any decommissioning liabilities. (f) Income taxes Income tax expense consisting of current and deferred tax expense is recognized to profit or loss. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period-end, adjusted for amendments to tax payable with regard to previous years. Deferred tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that substantive enactment occurs. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. (g) Share-based payments The Company grants stock options to directors, officers, employees and consultants of the Company. The fair value of share-based payments to employees is measured at grant date, using the Black-Scholes option pricing model, and is recognized over the vesting period using the graded method. Fair value of share-based payments for non-employees is recognized and measured at the date the goods or services are received based on the fair value of the goods or services received. If it is determined that the fair value of goods and services received cannot be reliably measured, the share-based payment is measured at the fair value of the equity instruments issued using the Black-Scholes option pricing model. For both employees and non-employees, the fair value of share-based payments is recognized as either an expense or as mineral property interests with a corresponding increase in option reserves. The amount to be recognized as expense is adjusted to reflect the number of share options expected to vest. Consideration received on the exercise of stock options is recorded in capital stock and the related share-based payment is transferred from the stock option reserve to capital stock. For unexercised options that expire, the recorded value is transferred to deficit. (h) Convertible debentures The liability component of convertible debentures is recognized initially at the fair value of a similar liability that does not have a conversion option. The equity component is recognized initially, as the difference between the fair value of the convertible debenture as a whole and the fair value of the liability component. Transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts. Subsequent to initial recognition, the liability component of the convertible debenture is measured at amortized cost using the effective interest method. The equity component is not re-measured subsequent to initial recognition. (i) Loss per share Loss per share is calculated by dividing net loss attributable to common shares of the Company by the weighted average number of common shares outstanding during the year. The Company uses the treasury stock method for calculating diluted loss per share. Under this method, the dilutive effect on earnings per share is calculated on the use of the proceeds that could be obtained upon exercise of options, warrants and similar instruments. It assumes that the proceeds of such exercise would be used to purchase common shares at the average market price during the period. However, the calculation of diluted loss per share excludes the effects of various conversions and exercise of options and warrants that would be anti-dilutive. (j) Capital stock Proceeds from the exercise of stock options and warrants are recorded as capital stock. The proceeds from the issuance of units of the Company are allocated between common shares and warrants based on the residual value method. Under this method, the proceeds are allocated first to capital stock based on the fair value of the common shares at the time the units are issued and any residual value is allocated to the warrants. When the warrants are exercised, the related value is transferred from the warrant reserve to capital stock. For unexercised warrants that expire, the recorded value is transferred from the warrant reserves to deficit. (k) Foreign currency translation Amounts recorded in foreign currency are translated into Canadian dollars as follows: (i) Monetary assets and liabilities, at the rate of exchange in effect as at the balance sheet date; (ii) Non-monetary assets and liabilities, at the exchange rates prevailing at the time of the acquisition of the assets or assumption of the liabilities; and (iii) Revenues and expenses (excluding amortization, which is translated at the same rate as the related asset), at the rate of exchange on the transaction date. Exchange differences are recognized in profit or loss in the period which they arise. (l) Accounting standards issued but not yet applied At the date of the approval of the financial statements, a number of standards and interpretations were issued but not effective. The Company considers that these new standards and interpretations are either not applicable or are not expected to have a significant impact on the Company’s financial statements. |
PLAN OF ARRANGEMENT
PLAN OF ARRANGEMENT | 12 Months Ended |
Dec. 31, 2017 | |
Plan Of Arrangement | |
PLAN OF ARRANGEMENT | 5. PLAN OF ARRANGEMENT On February 26, 2015, the Company incorporated two wholly-owned private British Columbia subsidiaries, 27 Red Capital Inc. (“27 Red”) and 4 Touchdowns Capital Inc. (“4 Touchdowns”). On April 30, 2015, the Company entered into an arrangement agreement with 27 Red and 4 Touchdowns. In respect to the Arrangement, the Company applied for an Interim Order which was granted on May 6, 2015 by the Supreme Court of British Columbia, and on June 12, 2015 the Company received final court approval for the Arrangement. The Company completed the Arrangement with 27 Red and 4 Touchdowns on February 12, 2016 (“Effective Date”). On the Effective Date, shareholders of the Company received one new common share, one Class 1 Reorganization Share and one Class 2 Reorganization Share of the Company. On the Effective Date, all of the Class 1 Reorganization Shares were transferred by the shareholders of the Company to 27 Red in exchange for 2,067,724 common shares of 27 Red on a pro rata basis (resulting in one common share of 27 Red being issued for every one Class 1 Reorganization Share). Immediately following this, the Company redeemed all of the Class 1 Reorganization Shares held by 27 Red by a cash payment of $20,677 and issuance of a promissory note of $20,677. The promissory note is non-interest bearing, unsecured and due on demand. The redemption of shares was distributed to the shareholders’ of 27 Red as a capital distribution and recorded as a dividend. On the Effective Date, all of the Class 2 Reorganization Shares were transferred by the shareholders of the Company to 4 Touchdowns in exchange for 2,067,724 common shares of 4 Touchdowns on a pro rata basis (resulting in one common share of 4 Touchdowns being issued for every one Class 2 Reorganization Share). Immediately following this, the Company redeemed all of the Class 2 Reorganization Shares held by 4 Touchdowns by a cash payment of $20,677 and issuance of a promissory note of $20,677. The promissory note is non-interest bearing, unsecured and due on demand. The redemption of shares was distributed to the shareholders’ of 4 Touchdowns as a capital distribution and recorded as a dividend. |
MINERAL PROPERTY INTERESTS
MINERAL PROPERTY INTERESTS | 12 Months Ended |
Dec. 31, 2017 | |
Mineral Property Interests | |
MINERAL PROPERTY INTERESTS | 6. MINERAL PROPERTY INTERESTS Extra High Claims The Company holds a 33% interest in the Extra High Claims located in British Columbia. The Extra High Claims expire on December 25, 2019. Ontario Mineral Leases (Lithium) During the year ended December 31, 2008, the Company sold all of its Ontario Mineral Leases (Lithium). In the event that the Ontario Mineral Leases (Lithium) are placed into commercial production, then the Company is entitled to receive a 0.5% gross receipts royalty after six months from the date of commencement of commercial production from the Ontario Mineral Leases (Lithium). |
INVESTMENT
INVESTMENT | 12 Months Ended |
Dec. 31, 2017 | |
Investment | |
INVESTMENT | 7. INVESTMENT In April 2013, the Company entered into an agreement with a Mexican gaming company whereby as at December 31, 2013 the Company invested $800,000 in the Mexican gaming company. As at December 31, 2014, the Company assessed the fair value of its investment in the Mexican gaming company and recorded impairment of $799,999 on the Company’s investment. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Payable And Accrued Liabilities | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 8. ACCOUNTS PAYABLE AND ACCRUED LIABILITES December 31, 2017 December 31, 2016 Trade payables $ 173,647 $ 141,930 Accrued liabilities 26,753 21,310 $ 200,400 $ 163,240 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions [abstract] | |
RELATED PARTY TRANSACTIONS | 9. RELATED PARTY TRANSACTIONS As at December 31, 2017 and 2016, the amounts due to related parties are unsecured, payable on demand which consist of the following: 2017 2016 Advances from directors (interest at prime plus 1%) $ 104,435 $ 45,505 Entities controlled by directors (non-interest-bearing) 29,852 377,143 $ 134,287 $ 422,648 Included in convertible debentures and accrued interest is $339,589 (2016 - $317,089) owing to the Chief Executive Officer and to a former director of the Company (note 12). During the years ended December 31, 2017, 2016 and 2015, the following amounts were charged by related parties. 2017 2016 2015 Interest charged on amounts due to related parties $ 3,301 $ 978 $ 928 Interest on convertible debentures 30,000 30,000 29,589 Rent charged by entities with common directors (note 16) 28,627 28,298 29,403 Office expenses charged by, and other expenses paid on behalf of the Company by a Company with common directors (note 16) 85,186 86,044 86,332 $ 147,114 $ 145,320 $ 146,252 The Company, together with Jackpot Digital Inc. (“Jackpot”), a related company with certain common directors, and Green Arrow Resources Inc. (“Green Arrow”), a formerly related company, had entered into an office lease agreement with an arm’s length party for office space effective as of August 1, 2014 for a one-year period which was extended until July 31, 2016. The office lease agreement was further extended for a period of one year until July 31, 2017. Under the office lease agreement, as of August 1, 2016, the three companies were required to pay a monthly base rent of $7,194 plus property and operating expenses for the leased premises. A lease deposit of $10,000 was made by Jackpot. As of December 1, 2016, Green Arrow is no longer obligated or required to pay its proportionate share of the office rent. The remuneration of directors and key management personnel during the years ended December 31, 2017, 2016 and 2015 is as follows: 2017 2016 2015 Management fees $ — $ 35,000 $ 60,000 The Company had an agreement for management services (the “Management Services Agreement”) with Kalpakian Bros. of B.C. Ltd. (“Kalpakian Bros.”), a private company owned by a director and a former director of the Company. Effective as of August 1, 2016, the Management Services Agreement was terminated by mutual consent. During the year ended December 31, 2017, the Company executed consulting agreements with 27 Red and 4 Touchdowns, entities with common directors, whereby the Company charged $36,377 (2016 - $nil) consulting fees for services provided. The consulting income has been recorded in other income. |
REFUNDABLE SUBSCRIPTION
REFUNDABLE SUBSCRIPTION | 12 Months Ended |
Dec. 31, 2017 | |
Refundable Subscription | |
REFUNDABLE SUBSCRIPTION | 10. REFUNDABLE SUBSCRIPTION During the year ended December 31, 2016, the Company cancelled subscription agreements of a non-brokered private placement totalling $45,000 and the Company refunded $35,000. As of December 31, 2017 the remaining $10,000 (2016 - $10,000) is owing. |
LOAN PAYABLE
LOAN PAYABLE | 12 Months Ended |
Dec. 31, 2017 | |
Loan Payable | |
LOAN PAYABLE | 11. LOAN PAYABLE During the year ended December 31, 2016, the Company entered into an agreement with an arm’s length party whereby the party would pay certain debts owed by the Company. The loan is non-interest bearing, unsecured and due on demand. As of December 31, 2017, the balance payable is $103,924 (2016 - $103,924). |
CONVERTIBLE DEBENTURES FINANCIN
CONVERTIBLE DEBENTURES FINANCING | 12 Months Ended |
Dec. 31, 2017 | |
Convertible Debentures Financing | |
CONVERTIBLE DEBENTURES FINANCING | 12. CONVERTIBLE DEBENTURES FINANCING Convertible Debentures Financing 2015 On January 6, 2015, the Company closed a convertible debenture financing with two directors of the Company for the amount of $250,000. The convertible debentures matured on January 6, 2016, and bear interest at the rate of 12% per annum payable on a quarterly basis. The convertible debentures are convertible into common shares of the Company at a conversion price of $0.30 per share. The liability component of the convertible debentures was recognized initially at the fair value of a similar liability with no equity conversion option, which was calculated based on the application of a market interest rate of 25%. On the initial recognition of the convertible debentures, the amount of $222,006 was recorded under convertible debentures and the amount of $27,994 has been recorded under the equity portion of convertible debenture reserve. As of December 31, 2017, the convertible debentures are in default; however, the Company has not been served with a default notice. Convertible Debentures Financing 2013 During the year ended December 31, 2013, the Company issued several convertible debentures for a total amount of $975,000. The convertible debentures have a maturity date of 18 months from the date of closing, and bear interest at the rate of 15% per annum payable on a quarterly basis. The convertible debentures are convertible into common shares of the Company at a conversion price of $1.50 per share. The liability component of the convertible debenture was recognized initially at the fair value of a similar liability with no equity conversion option, which was calculated based on the application of a market interest rate of 20%. The difference between the $975,000 face value of the debentures and the fair value of the liability component was recognized in equity. On the initial recognition of the convertible debentures, the amount of $913,072 has been recorded under convertible debentures and the amount of $61,928 has been recorded under the equity portion of convertible debentures. Pursuant to the financing, the Company has made cash payments of $48,000 and issued 2,000 common shares of the Company and 3,333 agent warrants of the Company with fair value of $8,115 as finders’ fees. Each warrant entitles the holder to purchase one additional common share of the Company at a price of $1.50 per share until July 23, 2018. The amount of transaction costs directly attributable to the financing of $56,115 were allocated to the liability and equity components of the debenture proportionately at $52,551 and $3,564, respectively. The discount on the debentures is being accreted such that the liability component will equal the face value of the debentures at maturity plus accrued interest. On September 4, 2013, the amount of $858,118 which comprised of certain convertible debentures and their corresponding accrued interest was converted into 610,724 common shares of the Company. The equity portion of the convertible debentures was reduced in the amount of $52,562. As of December 31, 2017, one convertible debenture is in default and another convertible debenture has been extended indefinitely, however, the Company has not been served with a default notice. The following table reconciles the fair value of the debentures to the carrying amount. Liability Component Equity Component Total Balance, December 31, 2014 $ 123,125 $ 5,712 $ 128,837 Gross proceeds to allocate 222,006 27,994 250,000 Accretion of discount 34,924 — 34,924 Interest accrued 44,589 — 44,589 Balance, December 31, 2015 424,644 33,706 458,350 Accretion of discount 571 — 571 Interest accrued 45,000 — 45,000 Balance, December 31, 2016 470,215 33,706 503,921 Accretion of discount (adjustment) (11,024 ) — (11,024 ) Interest accrued 45,000 — 45,000 Balance, December 31, 2017 $ 504,191 $ 33,706 $ 537,897 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2017 | |
Capital Stock | |
CAPITAL STOCK | 13. CAPITAL STOCK (a) Authorized Unlimited number of common and preferred shares without par value. As of December 31, 2017, there are no preferred shares issued. (b) Issued As of December 31, 2017, there are 6,492,709 common shares issued and outstanding. During the year ended December 31, 2017, the Company completed the following transaction: • The Company entered into debt settlement agreements with Jackpot, and with Kalpakian Bros., companies related to 37 Capital by certain common directors and shareholders. The Company has issued 4,249,985 units of the Company to Jackpot at the price of $0.09 per unit in settlement of the Company’s outstanding debt to Jackpot for the total amount of $382,499 for shared office rent, office support services and miscellaneous office expenses provided by Jackpot to the Company from August 1, 2014 up to September 30, 2017. In respect to the Company’s outstanding debt to Kalpakian Bros. for the total amount of $15,750, the Company has issued 175,000 units of the Company at the price of $0.09 per unit in settlement of the Company’s outstanding debt owed to Kalpakian Bros. for unpaid management fees from May 1, 2016 up to July 30, 2016. Each unit consists of one common share and one share purchase warrant. Each warrant is exercisable at the price of $0.12 per share until November 2, 2022. As a result of the debt settlement agreement with Jackpot, 4,249,985 common shares representing 65.45% of the Company’s current issued and outstanding common shares are owned by Jackpot. During the year ended December 31, 2016, the Company completed the following financing: • On January 4, 2016, the Company closed a non-brokered private placement issuing 1,000,000 units at $0.10 per unit for gross proceeds to the Company of $100,000. Each unit consists of one common share of the Company and one share purchase warrant exercisable for one additional common share of the Company at an exercise price of $0.135 per common share until January 4, 2021. There were no shares issued during the year ended December 31, 2015. (c) Warrants Warrants activity is as follows: Number of Warrants Weighted Average Exercise Price Balance, January 1, 2015 270,835 $ 1.50 Expired (267,502 ) $ 1.50 Issued 1,000,000 $ 0.135 Balance, December 31, 2016 1,003,333 $ 0.14 Expired — — Issued 4,424,985 $ 0.12 Balance, December, 2017 5,428,318 $ 0.12 As of December 31, 2017, the following warrants were outstanding: Expiry Date Exercise Price Number of Warrants Outstanding July 23, 2018 1.50 3,333 January 4, 2021 0.135 1,000,000 November 2, 2022 0.12 4,424,985 5,428,318 The weighted average remaining contractual life for warrants outstanding at December 31, 2017 is 4.50 years. (d) Stock options The Company’s 2015 Stock Option Plan provides that the Board of Directors of the Company may grant to directors, officers, employees and consultants of the Company options to acquire up to 20% of the issued and outstanding common shares of the Company calculated from time to time on a rolling basis. The terms of the options are determined at the date of grant. Options activity is as follows: Number of Options Weighted Average Exercise Price Balance, December 31, 2015 33,334 $ 1.20 Expired (33,334 ) $ 1.20 Balance, December 31, 2016 and 2017 — $ 0.00 As of December 31, 2017, there were no stock options outstanding. |
CHANGES IN NON-CASH WORKING CAP
CHANGES IN NON-CASH WORKING CAPITAL | 12 Months Ended |
Dec. 31, 2017 | |
Changes In Non-cash Working Capital | |
CHANGES IN NON-CASH WORKING CAPITAL | 14. CHANGES IN NON-CASH WORKING CAPITAL 2017 2016 2015 GST receivable $ 2,489 $ (2,116 ) $ 610 Accounts payable and accrued liabilities 435,409 112,924 27,659 Due to related parties (288,361 ) 92,313 (22,432 ) $ 149,537 $ 203,121 $ 5,837 Supplemental information Non-cash items Interest expense included in convertible debt $ 33,976 $ 45,571 $ 79,513 Interest expense included in due to related parties $ 3,301 $ 978 $ 928 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | |
INCOME TAXES | 15. INCOME TAXES Income tax expense differs from the amount that would be computed by applying the Canadian statutory income tax rate of 26.00% to income before income taxes. 2017 2016 2015 Loss before income taxes $ 183,934 $ 347,963 $ 334,993 Statutory income tax rate 26.00 % 26.00 % 26.00 % Expected income tax benefit 47,823 90,470 87,098 Items not deductible for income tax purposes — — (81 ) Underprovided in prior years (18,429 ) 783 57,063 Unrecognized benefit of deferred tax assets (29,394 ) (89,688 ) (144,080 ) Income tax expense $ — $ — $ — The Company recognizes tax benefits on losses or other deductible amounts where it is probable the Company will generate sufficient taxable income to utilize deferred tax assets. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts: 2017 2016 Excess of unused exploration expenditures over carrying value of mineral property interests $ 2,656,167 $ 2,656,167 Excess of undepreciated capital cost over carrying value of fixed assets 650,381 650,381 Non-refundable mining investment tax credits 988 988 Long-term investment 400,000 400,000 Share issue cost — 9,600 Non-capital losses carried forward 3,786,737 3,664,085 Capital losses carried forward 993,649 993,649 Unrecognized deductible temporary differences $ 8,487,922 $ 8,374,870 The Company’s unrecognized unused non-capital tax losses have the following expiry dates: 2027 $ 590,000 $ 590,000 2028 306,000 306,000 2029 487,000 487,000 2030 454,000 454,000 2031 336,000 333,000 2032 122,000 163,000 2033 213,000 172,000 2034 457,000 457,000 2035 344,000 344,000 2036 284,000 358,000 2037 194,000 — $ 3,787,000 $ 3,664,000 The Company has available approximate net capital losses of $994,000 that may be carried forward indefinitely. The Company has available resource-related deductions of approximately $2,656,000 that may be carried forward indefinitely. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Commitments | |
COMMITMENTS | 16. COMMITMENTS a) During April 2017, the Company together with Jackpot entered into an office lease agreement with an arm’s length party (the “Lease”). The Lease has a three-year term with a commencement date of August 1, 2017. The annual basic rent is $121,396 plus estimated annual operating costs of approximately $88,000. The Company’s share of the office basic rent and operating costs is $28,800 plus applicable taxes per annum. b) The Company has an agreement for office support services with Jackpot, a company with common directors. Under the agreement, the Company is entitled to receive office support services from Jackpot at a monthly rate of $7,000 plus applicable taxes. The agreement expires on April 30, 2018. The agreement can be terminated by either party upon giving three months’ written notice. |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2017 | |
Capital Management | |
CAPITAL MANAGEMENT | 17. CAPITAL MANAGEMENT The Company considers its capital to be comprised of stockholders’ deficiency and convertible debenture. The Company’s objective when managing capital is to maintain adequate levels of funding to support the acquisition, exploration and, if warranted, the development of mineral properties, to invest in non-mining related projects and to maintain the necessary corporate and administrative functions to facilitate these activities. This is done primarily through equity and debt financing. Future financings are dependent on market conditions and there can be no assurance that the Company will be able to raise funds in the future. There were no changes to the Company’s approach to capital management during the year ended December 31, 2017. The Company is not subject to externally imposed capital requirements. |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments And Risk Management | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 18. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (a) Risk management overview The Company's activities expose it to a variety of financial risks including credit risk, liquidity risk and market risk. This note presents information about the Company's exposure to each of the above risks, the Company's objectives, policies and processes for measuring and managing risk, and the Company's management of capital. The Company employs risk management strategies and policies to ensure that any exposure to risk is in compliance with the Company's business objectives and risk tolerance levels. While the Board of Directors has the overall responsibility for the Company's risk management framework, the Company's management has the responsibility to administer and monitor these risks. (b) Fair value of financial instruments The fair values of cash, accounts payable and accrued liabilities and due to related parties approximate their carrying values due to the short-term maturity of these instruments. (c) Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The financial instruments that potentially subject the Company to a significant concentration of credit risk consist of cash. The Company mitigates its exposure to credit loss associated with cash by placing its cash with a major financial institution. (d) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they are due. The Company's approach to managing liquidity is to ensure that it will have sufficient liquidity to meet its liabilities when due. At December 31, 2017, the Company had cash of $891 (2016 - $1,312) available to apply against short-term business requirements and current liabilities of $952,802 (2016 - $1,170,027). All of the current liabilities, are due within 90 days. Amounts due to related parties are due on demand. (e) Market risk Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates, will affect the Company's net earnings or the value of financial instruments. As at December 31, 2017, the Company is not exposed to significant interest rate risk, currency risk or other price risk on its financial assets and liabilities due to the short term maturity of its financial liabilities and fixed interest rate on the convertible debentures. |
EVENT AFTER REPORTING PERIOD
EVENT AFTER REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2017 | |
Event After Reporting Period | |
SUBSEQUENT EVENTS | 19. EVENT AFTER REPORTING PERIOD (a) A total of 500,000 share purchase warrants at $0.135 per share have been exercised for total proceeds to the Company of $67,500. |
SIGNIFICANT ACCOUNTING POLICI25
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies | |
Principles of consolidation | (a) Principles of consolidation Subsidiaries are entities controlled by the Company. Control exists when the Company has the power to govern the financial and operating policies of a Company so as to obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable are taken into account. The financial statements of the Company’s former wholly-owned subsidiaries, 27 Red and 4 Touchdowns are included in the consolidated financial statements from the date that control commenced to the date that control ceased. Intercompany balances and transactions and any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. |
Financial instruments | (b) Financial instruments i) Financial assets The Company classifies its financial assets in the following categories: financial assets at fair value through profit or loss (“FVTPL”), loans and receivables, held-to-maturity and available for sale (“AFS”). The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets at recognition. Fair value through profit or loss Financial assets are classified as FVTPL when the financial asset is held-for-trading or it is designated as FVTPL. A financial asset is classified as FVTPL when it has been acquired principally for the purpose of selling in the near future; it is a part of an identified portfolio of financial instruments that the company manages and has an actual pattern of short-term profit-taking or if it is a derivative that is not designated and effective as a hedging instrument. Upon initial recognition, attributable transaction costs are recognized in profit or loss when incurred. Financial instruments at FVTPL are measured at fair value, and changes therein are recognized in profit or loss. The Company classifies its cash as FVTPL. Loans and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are initially recognized at the transaction value and subsequently carried at amortized cost less impairment losses. The impairment loss on receivables is based on a review of all outstanding amounts at year-end. Interest income is recognized by applying the effective interest rate method Held-to-maturity Held-to-maturity financial assets are recognized on a trade-date basis and are initially measured at fair value using the effective interest rate method. Available-for-sale AFS financial assets are non-derivatives that are either designated as AFS or not classified in any of the other financial assets categories. Changes in the fair value of AFS financial assets other than impairment losses are recognized as other comprehensive loss and classified as a component of equity. The Company classifies its investment as AFS. (ii) Financial liabilities The Company classifies its financial liabilities as FVTPL or other financial liabilities. Fair value through profit or loss Financial liabilities classified as FVTPL include financial liabilities held-for-trading and financial liabilities designated upon initial recognition as FVTPL. Fair value changes on financial liabilities classified as FVTPL are recognized in profit or loss. Other financial liabilities Other financial liabilities are non-derivatives and are recognized initially at fair value, net of transaction costs incurred, and are subsequently stated at amortized cost using the effective interest rate method. Any difference between the amounts originally received, net of transaction costs, and the redemption value is recognized in profit or loss over the period to maturity using the effective interest method. Other financial liabilities are classified as current or non-current based on their maturity date. The Company classifies accounts payable and accrued liabilities, due to related parties, and convertible debentures as other financial liabilities. (iii) Impairment The Company assesses at each reporting date whether there is objective evidence that financial assets, other than those designated as FVTPL, are impaired. When impairment has occurred, the cumulative loss is recognized to profit or loss. For financial assets carried at amortized cost, the amount of the impairment loss recognized is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate. When an AFS financial asset is considered to be impaired, cumulative gains or losses previously recognized in other comprehensive income are reclassified to profit or loss in the period the impairment occurred. |
Mineral property interests | (c) Mineral property interests Costs directly related to the acquisition, exploration and evaluation of resource properties are capitalized once the legal rights to explore the resource properties are acquired. If it is determined that capitalized acquisition, exploration and evaluation costs are not recoverable, or the property is abandoned or management has determined impairment in value, the property is written down to its recoverable amount. From time to time, the Company acquires or disposes of properties pursuant to the terms of option agreements. Options are exercisable entirely at the discretion of the optionee, and accordingly, are recorded as mineral property costs or recoveries when the payments are made or received. After costs are recovered, the balance of the payments received is recorded as a gain on option or disposition of mineral property. Once the technical feasibility and commercial viability of the extraction of mineral resources are demonstrable, mineral property interests attributable to that area of interest are first tested for impairment and then reclassified to mining property and development assets within property and equipment. To date, none of the Company’s mineral property interests has demonstrated technical feasibility and commercial viability. The recoverability of the carrying amount of any mineral property interests is dependent on successful development and commercial exploitation or, alternatively, sale of the respective areas of interest. |
Impairment | (d) Impairment At the end of each reporting period, the Company’s assets are reviewed to determine whether there is any indication that those assets may be impaired. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. |
Decommissioning liabilities | (e) Decommissioning liabilities An obligation to incur decommissioning and site rehabilitation costs occurs when environmental disturbance is caused by exploration, evaluation, development or ongoing production. Decommissioning and site rehabilitation costs arising from the installation of plant and other site preparation work, discounted to their net present value, are provided when the obligation to incur such costs arises and are capitalized into the cost of the related asset. These costs are charged against operations through depreciation of the asset and unwinding of the discount on the provision. Depreciation is included in operating costs while the unwinding of the discount is included as a financing cost. Changes in the measurement of a liability relating to the decommissioning or site rehabilitation of plant and other site preparation work are added to, or deducted from, the cost of the related asset. The costs for the restoration of site damage, which arises during production, are provided at their net present values and charged against operations as extraction progresses. Changes in the measurement of a liability, which arise during production, are charged against operating profit. The discount rate used to measure the net present value of the obligations is the pre-tax rate that reflects the current market assessment of the time value of money and the risks specific to the obligation. To date the Company does not have any decommissioning liabilities. |
Income taxes | (f) Income taxes Income tax expense consisting of current and deferred tax expense is recognized to profit or loss. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period-end, adjusted for amendments to tax payable with regard to previous years. Deferred tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that substantive enactment occurs. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. |
Share-based payments | (g) Share-based payments The Company grants stock options to directors, officers, employees and consultants of the Company. The fair value of share-based payments to employees is measured at grant date, using the Black-Scholes option pricing model, and is recognized over the vesting period using the graded method. Fair value of share-based payments for non-employees is recognized and measured at the date the goods or services are received based on the fair value of the goods or services received. If it is determined that the fair value of goods and services received cannot be reliably measured, the share-based payment is measured at the fair value of the equity instruments issued using the Black-Scholes option pricing model. For both employees and non-employees, the fair value of share-based payments is recognized as either an expense or as mineral property interests with a corresponding increase in option reserves. The amount to be recognized as expense is adjusted to reflect the number of share options expected to vest. Consideration received on the exercise of stock options is recorded in capital stock and the related share-based payment is transferred from the stock option reserve to capital stock. For unexercised options that expire, the recorded value is transferred to deficit. |
Convertible debentures | (h) Convertible debentures The liability component of convertible debentures is recognized initially at the fair value of a similar liability that does not have a conversion option. The equity component is recognized initially, as the difference between the fair value of the convertible debenture as a whole and the fair value of the liability component. Transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts. Subsequent to initial recognition, the liability component of the convertible debenture is measured at amortized cost using the effective interest method. The equity component is not re-measured subsequent to initial recognition. |
Loss per share | (i) Loss per share Loss per share is calculated by dividing net loss attributable to common shares of the Company by the weighted average number of common shares outstanding during the year. The Company uses the treasury stock method for calculating diluted loss per share. Under this method, the dilutive effect on earnings per share is calculated on the use of the proceeds that could be obtained upon exercise of options, warrants and similar instruments. It assumes that the proceeds of such exercise would be used to purchase common shares at the average market price during the period. However, the calculation of diluted loss per share excludes the effects of various conversions and exercise of options and warrants that would be anti-dilutive. |
Capital stock | (j) Capital stock Proceeds from the exercise of stock options and warrants are recorded as capital stock. The proceeds from the issuance of units of the Company are allocated between common shares and warrants based on the residual value method. Under this method, the proceeds are allocated first to capital stock based on the fair value of the common shares at the time the units are issued and any residual value is allocated to the warrants. When the warrants are exercised, the related value is transferred from the warrant reserve to capital stock. For unexercised warrants that expire, the recorded value is transferred from the warrant reserves to deficit. |
Foreign currency translation | (k) Foreign currency translation Amounts recorded in foreign currency are translated into Canadian dollars as follows: (i) Monetary assets and liabilities, at the rate of exchange in effect as at the balance sheet date; (ii) Non-monetary assets and liabilities, at the exchange rates prevailing at the time of the acquisition of the assets or assumption of the liabilities; and (iii) Revenues and expenses (excluding amortization, which is translated at the same rate as the related asset), at the rate of exchange on the transaction date. Exchange differences are recognized in profit or loss in the period which they arise. |
Accounting standards issued but not yet applied | (l) Accounting standards issued but not yet applied At the date of the approval of the financial statements, a number of standards and interpretations were issued but not effective. The Company considers that these new standards and interpretations are either not applicable or are not expected to have a significant impact on the Company’s financial statements. |
ACCOUNTS PAYABLE AND ACCRUED 26
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Payable And Accrued Liabilities | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | December 31, 2017 December 31, 2016 Trade payables $ 173,647 $ 141,930 Accrued liabilities 26,753 21,310 $ 200,400 $ 163,240 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions [abstract] | |
Amounts due to related parties | As at December 31, 2017 and 2016, the amounts due to related parties are unsecured, payable on demand which consist of the following: 2017 2016 Advances from directors (interest at prime plus 1%) $ 104,435 $ 45,505 Entities controlled by directors (non-interest-bearing) 29,852 377,143 $ 134,287 $ 422,648 |
Amounts charged by related parties | During the years ended December 31, 2017, 2016 and 2015, the following amounts were charged by related parties. 2017 2016 2015 Interest charged on amounts due to related parties $ 3,301 $ 978 $ 928 Interest on convertible debentures 30,000 30,000 29,589 Rent charged by entities with common directors (note 16) 28,627 28,298 29,403 Office expenses charged by, and other expenses paid on behalf of the Company by a Company with common directors (note 16) 85,186 86,044 86,332 |
Remuneration of directors and key management personnel | The remuneration of directors and key management personnel during the years ended December 31, 2017, 2016 and 2015 is as follows: 2017 2016 2015 Management fees $ — $ 35,000 $ 60,000 |
CONVERTIBLE DEBENTURES FINANC28
CONVERTIBLE DEBENTURES FINANCING (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Convertible Debentures Financing | |
Reconciles of fair value of debentures to carrying amount | The following table reconciles the fair value of the debentures to the carrying amount. Liability Component Equity Component Total Balance, December 31, 2014 $ 123,125 $ 5,712 $ 128,837 Gross proceeds to allocate 222,006 27,994 250,000 Accretion of discount 34,924 — 34,924 Interest accrued 44,589 — 44,589 Balance, December 31, 2015 424,644 33,706 458,350 Accretion of discount 571 — 571 Interest accrued 45,000 — 45,000 Balance, December 31, 2016 470,215 33,706 503,921 Accretion of discount (adjustment) (11,024 ) — (11,024 ) Interest accrued 45,000 — 45,000 Balance, December 31, 2017 $ 504,191 $ 33,706 $ 537,897 |
CAPITAL STOCK (Table)
CAPITAL STOCK (Table) | 12 Months Ended |
Dec. 31, 2017 | |
Capital Stock Table | |
Warrants activity | Warrants activity is as follows: Number of Warrants Weighted Average Exercise Price Balance, January 1, 2015 270,835 $ 1.50 Expired (267,502 ) $ 1.50 Issued 1,000,000 $ 0.135 Balance, December 31, 2016 1,003,333 $ 0.14 Expired — — Issued 4,424,985 $ 0.12 Balance, December, 2017 5,428,318 $ 0.12 |
Warrants outstanding | As of December 31, 2017, the following warrants were outstanding: Expiry Date Exercise Price Number of Warrants Outstanding July 23, 2018 1.50 3,333 January 4, 2021 0.135 1,000,000 November 2, 2022 0.12 4,424,985 5,428,318 |
Schedule of Options activity | Options activity is as follows: Number of Options Weighted Average Exercise Price Balance, December 31, 2015 33,334 $ 1.20 Expired (33,334 ) $ 1.20 Balance, December 31, 2016 and 2017 — $ 0.00 |
CHANGES IN NON-CASH WORKING C30
CHANGES IN NON-CASH WORKING CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Changes In Non-cash Working Capital | |
Schedule Of Changes in noncash working capital | 2017 2016 2015 GST receivable $ 2,489 $ (2,116 ) $ 610 Accounts payable and accrued liabilities 435,409 112,924 27,659 Due to related parties (288,361 ) 92,313 (22,432 ) $ 149,537 $ 203,121 $ 5,837 Supplemental information Non-cash items Interest expense included in convertible debt $ 33,976 $ 45,571 $ 79,513 Interest expense included in due to related parties $ 3,301 $ 978 $ 928 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes Tables | |
Schedule of income tax expenses | Income tax expense differs from the amount that would be computed by applying the Canadian statutory income tax rate of 26.00% to income before income taxes. 2017 2016 2015 Loss before income taxes $ 183,934 $ 347,963 $ 334,993 Statutory income tax rate 26.00 % 26.00 % 26.00 % Expected income tax benefit 47,823 90,470 87,098 Items not deductible for income tax purposes — — (81 ) Underprovided in prior years (18,429 ) 783 57,063 Unrecognized benefit of deferred tax assets (29,394 ) (89,688 ) (144,080 ) Income tax expense $ — $ — $ — |
Schedule of unrecognized deductible temporary differences and unused tax losses | The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts: 2017 2016 Excess of unused exploration expenditures over carrying value of mineral property interests $ 2,656,167 $ 2,656,167 Excess of undepreciated capital cost over carrying value of fixed assets 650,381 650,381 Non-refundable mining investment tax credits 988 988 Long-term investment 400,000 400,000 Share issue cost — 9,600 Non-capital losses carried forward 3,786,737 3,664,085 Capital losses carried forward 993,649 993,649 Unrecognized deductible temporary differences $ 8,487,922 $ 8,374,870 |
Schedule of unrecognized unused non-capital tax losses | The Company’s unrecognized unused non-capital tax losses have the following expiry dates: 2027 $ 590,000 $ 590,000 2028 306,000 306,000 2029 487,000 487,000 2030 454,000 454,000 2031 336,000 333,000 2032 122,000 163,000 2033 213,000 172,000 2034 457,000 457,000 2035 344,000 344,000 2036 284,000 358,000 2037 194,000 — $ 3,787,000 $ 3,664,000 |
NATURE OF BUSINESS (Details Nar
NATURE OF BUSINESS (Details Narrative) | 12 Months Ended |
Dec. 31, 2017 | |
Nature Of Business | |
Entity Incorporation, Date of Incorporation | Aug. 24, 1984 |
Entity Incorporation, State Country Name | British Columbia |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Going Concern | |||
Operating losses | $ (183,934) | $ (347,963) | $ (334,993) |
Accumulated deficit | (26,759,061) | $ (26,575,127) | |
Working capital deficiency | $ (1,164,107) |
PLAN OF ARRANGEMENT (Details Na
PLAN OF ARRANGEMENT (Details Narrative) - CAD ($) | Feb. 12, 2017 | Dec. 31, 2017 |
Plan Of Arrangement | ||
Common stock exchange to share holders | 2,067,724 | 6,492,709 |
Cash payment | $ 20,677 | |
Issuance of promissory note | $ 20,677 |
MINERAL PROPERTY INTERESTS (Det
MINERAL PROPERTY INTERESTS (Details Narrative) | 12 Months Ended |
Dec. 31, 2017 | |
InvestmentPropertyExplanatoryLineItems [Line Items] | |
Mineral property expire date | Dec. 25, 2019 |
Extra High Claims | |
InvestmentPropertyExplanatoryLineItems [Line Items] | |
Percentage of holding | 33.00% |
INVESTMENT (Details Narrative)
INVESTMENT (Details Narrative) - CAD ($) | 1 Months Ended | 12 Months Ended |
Apr. 30, 2013 | Dec. 31, 2014 | |
Investment | ||
Royalty revenue | $ 800,000 | |
Impairment on investment | $ 799,999 |
ACCOUNTS PAYABLE AND ACCRUED 37
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - CAD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Payable And Accrued Liabilities | ||
Trade payables | $ 173,647 | $ 141,930 |
Accrued liabilities | 26,753 | 21,310 |
Accounts payable and accrued liabilities | $ 200,400 | $ 163,240 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - CAD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Related party transactions [abstract] | ||
Advances from directors (interest at prime plus 1%) | $ 104,435 | $ 45,505 |
Entities controlled by directors (non-interest-bearing) | 29,852 | 377,143 |
Due to related parties | $ 134,287 | $ 422,648 |
RELATED PARTY TRANSACTIONS (D39
RELATED PARTY TRANSACTIONS (Details 1) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related party transactions [abstract] | |||
Interest charged on amounts due to related parties | $ 3,301 | $ 978 | $ 928 |
Interest on convertible debentures | 30,000 | 30,000 | 29,589 |
Rent charged by entities with common directors (note 16) | 28,627 | 28,298 | 29,403 |
Office expenses charged by, and other expenses paid on behalf of the Company by a Company with common directors (note 16) | 85,186 | 86,044 | 86,332 |
Total expenses | $ 147,114 | $ 145,320 | $ 146,252 |
RELATED PARTY TRANSACTIONS (D40
RELATED PARTY TRANSACTIONS (Details 2) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related party transactions [abstract] | |||
Management fees | $ 0 | $ 35,000 | $ 60,000 |
RELATED PARTY TRANSACTIONS (D41
RELATED PARTY TRANSACTIONS (Details Narrative) - CAD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | ||
Consulting fees | $ 36,377 | $ 0 |
Chief Executive Officer | ||
Disclosure of transactions between related parties [line items] | ||
Convertible debentures and accrued interest | $ 339,589 | $ 317,089 |
REFUNDABLE SUBSCRIPTION (Detail
REFUNDABLE SUBSCRIPTION (Details Narrative) - CAD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Refundable Subscription | ||
Cancellation of non-brokered private placement | $ 45,000 | |
Refunded of non-brokered private placement | 35,000 | |
Refundable Subscription | $ 10,000 | $ 10,000 |
LOAN PAYABLE (Details Narrative
LOAN PAYABLE (Details Narrative) - CAD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Loan Payable | ||
Loan payable | $ 103,924 | $ 103,924 |
CONVERTIBLE DEBENTURES FINANC44
CONVERTIBLE DEBENTURES FINANCING (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
ConvertibleDebenturesFinancingLineItemLineItems [Line Items] | |||
Opening Balance | $ 503,921 | $ 458,350 | $ 128,837 |
Gross proceeds to allocate | 250,000 | ||
Accretion of discount | (11,024) | 571 | 34,924 |
Interest accrued | 45,000 | 45,000 | 44,589 |
Ending Balance | 537,897 | 503,921 | 458,350 |
Liability Component | |||
ConvertibleDebenturesFinancingLineItemLineItems [Line Items] | |||
Opening Balance | 470,215 | 424,644 | 123,125 |
Gross proceeds to allocate | 222,006 | ||
Accretion of discount | (11,024) | 571 | 34,924 |
Interest accrued | 45,000 | 45,000 | 44,589 |
Ending Balance | 504,191 | 470,215 | 424,644 |
Equity Component | |||
ConvertibleDebenturesFinancingLineItemLineItems [Line Items] | |||
Opening Balance | 33,706 | 33,706 | 5,712 |
Gross proceeds to allocate | 27,994 | ||
Accretion of discount | 0 | 0 | 0 |
Interest accrued | 0 | 0 | 0 |
Ending Balance | $ 33,706 | $ 33,706 | $ 33,706 |
CONVERTIBLE DEBENTURES FINANC45
CONVERTIBLE DEBENTURES FINANCING (Details Narrative) - CAD ($) | Jun. 06, 2015 | Sep. 04, 2013 | Dec. 31, 2013 | Jan. 04, 2016 |
ConvertibleDebenturesFinancingLineItems [Line Items] | ||||
Share Price | $ 0.10 | |||
Convertible Debentures | ||||
ConvertibleDebenturesFinancingLineItems [Line Items] | ||||
Convertible debenture financing, Amount | $ 250,000 | |||
Maturity date | Jan. 6, 2016 | |||
Conversion price | $ 0.30 | |||
Interest rate | 20.00% | |||
Convertible debentures, Amount | $ 222,006 | |||
Equity portion of convertible debenture | $ 27,994 | |||
Convertible Debentures Two | ||||
ConvertibleDebenturesFinancingLineItems [Line Items] | ||||
Convertible debenture financing, Amount | $ 975,000 | |||
Maturity date | Jul. 23, 2018 | |||
Conversion price | $ 1.50 | |||
Interest rate | 15.00% | |||
Convertible debentures, Amount | $ 913,072 | |||
Equity portion of convertible debenture | $ 52,562 | 61,928 | ||
Cash payments | $ 48,000 | |||
Common stock issued | 2,000 | |||
Share Price | $ 1.50 | |||
Financing transaction costs | $ 56,115 | |||
Convertible debentures converted into common stock, Value | $ 858,118 | |||
Convertible debentures converted into common stock, Share | 610,724 | |||
Warrants Agent | ||||
ConvertibleDebenturesFinancingLineItems [Line Items] | ||||
Common stock issued | 3,333 | |||
Fair value of warrants | $ 8,115 | |||
Liability Component | ||||
ConvertibleDebenturesFinancingLineItems [Line Items] | ||||
Financing transaction costs | 52,551 | |||
Equity Component | ||||
ConvertibleDebenturesFinancingLineItems [Line Items] | ||||
Financing transaction costs | $ 3,564 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Stock Details | ||
Warrant Opening Balance | 1,003,333 | 270,835 |
Warrant Expired | 0 | (267,502) |
Warrant Issued | 4,424,985 | 1,000,000 |
Warrant Ending Balance | 5,428,318 | 1,003,333 |
Weighted Average Exercise Price, Warrant Opening Balance | $ 0.14 | $ 1.5 |
Weighted Average Exercise Price, Warrant Expired | 0 | 1.5 |
Weighted Average Exercise Price, Warrant Issued | 0.12 | 0.135 |
Weighted Average Exercise Price, Warrant Ending Balance | $ 0.12 | $ 0.14 |
CAPITAL STOCK (Details 1)
CAPITAL STOCK (Details 1) - $ / shares | Jan. 04, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
DisclosureOfIssuedCapitalExplanatoryLineItems [Line Items] | ||||
Expiry Date | Jan. 4, 2021 | |||
Exercise Price | $ 0.135 | |||
Number of Warrants Outstanding | 5,428,318 | 1,003,333 | 270,835 | |
Warrant One | ||||
DisclosureOfIssuedCapitalExplanatoryLineItems [Line Items] | ||||
Expiry Date | Jul. 23, 2018 | |||
Exercise Price | $ 1.50 | |||
Number of Warrants Outstanding | 3,333 | |||
Warrant Two | ||||
DisclosureOfIssuedCapitalExplanatoryLineItems [Line Items] | ||||
Expiry Date | Jan. 4, 2021 | |||
Exercise Price | $ 0.135 | |||
Number of Warrants Outstanding | 1,000,000 | |||
Warrant Three | ||||
DisclosureOfIssuedCapitalExplanatoryLineItems [Line Items] | ||||
Expiry Date | Nov. 2, 2022 | |||
Exercise Price | $ 0.12 | |||
Number of Warrants Outstanding | 4,424,985 |
CAPITAL STOCK (Details 2)
CAPITAL STOCK (Details 2) | 12 Months Ended |
Dec. 31, 2016shares$ / shares | |
Number of Options | |
Outstanding at beginning of year | shares | 33,334 |
Expired | shares | (33,334) |
Outstanding at end of year | shares | 0 |
Weighted Average Exercise Price | |
Outstanding at beginning of year | $ / shares | $ 1.20 |
Expired | $ / shares | 1.20 |
Outstanding at end of year | $ / shares | $ 0 |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - CAD ($) | Jan. 04, 2016 | Sep. 30, 2017 | Dec. 31, 2017 | Feb. 12, 2017 |
IssuedCapitalLineItems [Line Items] | ||||
Preferred shares issued | 0 | |||
Common shares issued | 6,492,709 | 2,067,724 | ||
Common shares outstanding | 6,492,709 | |||
Non-brokered private placement shares issued | 1,000,000 | |||
Share price | $ 0.10 | |||
Gross proceeds from issue of shares | $ 100,000 | |||
Warrant exercise price | $ 0.135 | |||
Warrant expire date | Jan. 4, 2021 | |||
Weighted average remaining contractual life of warrants | 4 years 6 months | |||
Option outstanding | 0 | |||
Shares issued | 0 | |||
Kalpakian Bros | ||||
IssuedCapitalLineItems [Line Items] | ||||
Common shares issued | 4,249,985 | |||
Debt | $ 15,750 | |||
Common stock issued for settlement of debt | 175,000 | |||
Value of stock issued for settlement of debt | $ 15,750 | |||
Share price | $ 0.09 | |||
Warrant exercise price | $ 0.12 | |||
Warrant expire date | Nov. 2, 2022 | |||
Jackpot | ||||
IssuedCapitalLineItems [Line Items] | ||||
Common shares issued | 4,249,985 | |||
Office rent, office support services and miscellaneous office expenses | $ 382,499 |
CHANGES IN NON-CASH WORKING C50
CHANGES IN NON-CASH WORKING CAPITAL (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes In Non-cash Working Capital | |||
GST receivable | $ 2,489 | $ (2,116) | $ 610 |
Accounts payable and accrued liabilities | 435,409 | 112,924 | 27,659 |
Due to related parties | (288,361) | 92,313 | (22,432) |
Changes in non-cash working capital | 149,537 | 203,121 | 5,837 |
Supplemental information | |||
Interest expense included in convertible debt | 33,976 | 45,571 | 79,513 |
Interest expense included in due to related parties | $ 3,301 | $ 978 | $ 928 |
INCOME TAXES (Details)
INCOME TAXES (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes Details | |||
Loss before income taxes | $ 183,934 | $ 347,963 | $ 334,993 |
Statutory income tax rate | 26.00% | 26.00% | 26.00% |
Expected income tax benefit | $ 47,823 | $ 90,470 | $ 87,098 |
Items not deductible for income tax purposes | 0 | 0 | (81) |
Change in timing differences | (18,429) | 783 | 57,063 |
Underprovided in prior years | (29,394) | (89,688) | (144,080) |
Unrecognized benefit of deferred tax assets | 0 | 0 | 0 |
Income tax expense | $ 0 | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - CAD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes Details 1 | ||
Excess of unused exploration expenditures over carrying value of mineral property interests | $ 2,656,167 | $ 2,656,167 |
Excess of undepreciated capital cost over carrying value of fixed assets | 650,381 | 650,381 |
Non-refundable mining investment tax credits | 988 | 988 |
Long-term investment | 400,000 | 400,000 |
Share issue cost | 0 | 9,600 |
Non-capital losses carried forward | 3,786,737 | 3,664,085 |
Capital losses carried forward | 993,649 | 993,649 |
Unrecognized deductible temporary differences | $ 8,487,922 | $ 8,374,870 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - CAD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes Details 2 | ||
2,027 | $ 590,000 | $ 590,000 |
2,028 | 306,000 | 306,000 |
2,029 | 487,000 | 487,000 |
2,030 | 454,000 | 454,000 |
2,031 | 336,000 | 333,000 |
2,032 | 122,000 | 163,000 |
2,033 | 213,000 | 172,000 |
2,034 | 457,000 | 457,000 |
2,035 | 344,000 | 344,000 |
2,036 | 284,000 | 358,000 |
2,037 | 194,000 | 0 |
Unrecognized unused non-capital tax losses | $ 3,787,000 | $ 3,664,000 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes Details Narrative | |||
Statutory income tax rate | 26.00% | 26.00% | 26.00% |
Net capital losses carried forward | $ 994,000 | ||
Available resource-related deductions carried forward | $ 2,656,000 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) - CAD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments | ||||
Base Rent | $ 121,396 | |||
Lease Term | 3 years | |||
Annual operating costs | $ 88,000 | $ 220,311 | $ 347,963 | $ 334,993 |
Lease expire date | Apr. 30, 2017 | |||
Office basic rent and operating costs | $ 28,800 | |||
Office support services expenses | $ 7,000 |
FINANCIAL INSTRUMENTS AND RIS56
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details Narrative) - CAD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments And Risk Management | |||
Cash | $ 891 | $ 1,312 | $ 783 |
Current liabilities | $ 952,802 | $ 1,170,027 |
EVENT AFTER REPORTING PERIOD (D
EVENT AFTER REPORTING PERIOD (Details Narrative) | 12 Months Ended |
Dec. 31, 2017CAD ($)$ / sharesshares | |
Event After Reporting Period | |
Warrants purchase, Share | shares | 500,000 |
Exercise Price | $ / shares | $ 0.135 |
Proceed from warrants | $ | $ 67,500 |