Document and Entity Information
Document and Entity Information - CAD | 12 Months Ended | ||
Jul. 31, 2017 | Sep. 26, 2017 | Jan. 31, 2017 | |
Document And Entity Information | |||
Entity Registrant Name | QUARTZ MOUNTAIN RESOURCES LTD | ||
Entity Central Index Key | 811,522 | ||
Document Type | 20-F | ||
Document Period End Date | Jul. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --07-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | CAD 0 | ||
Entity Common Stock, Shares Outstanding | 0 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD | Jul. 31, 2017 | Jul. 31, 2016 |
Current assets | ||
Cash and cash equivalents | CAD 225,910 | CAD 306,398 |
Amounts receivable and other assets (note 3) | 6,242 | 6,769 |
Total current assets | 232,152 | 313,167 |
Mineral property interests (note 4) | 1 | 1 |
Total assets | 232,153 | 313,168 |
Current liabilities | ||
Amounts payable and other liabilities (note 6) | 1,323 | 1,107 |
Due to a related party (note 8) | 3,297,165 | 3,178,443 |
Total Liabilities | 3,298,488 | 3,179,550 |
Shareholders' deficiency | ||
Share capital (note 5(a)) | 26,090,118 | 26,090,118 |
Reserves | 592,011 | 592,011 |
Accumulated deficit | (29,748,464) | (29,548,511) |
Total shareholders' deficiency | (3,066,335) | (2,866,382) |
Total liabilities and shareholders' deficiency | CAD 232,153 | CAD 313,168 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - CAD | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Expenses | |||
Exploration and evaluation | CAD 700 | CAD 470 | CAD 14,067 |
Assays and analysis | 180 | 170 | 5,147 |
Geological | 520 | 8,175 | |
Graphics | 145 | ||
Sustainability | 300 | 600 | |
General and administration | 200,381 | 322,135 | 472,773 |
Insurance | 39,534 | 44,075 | 38,170 |
IT Services | 12,000 | 22,000 | 47,500 |
Legal, accounting and audit | 24,778 | 28,421 | 34,775 |
Office and miscellaneous | 1,191 | 619 | 3,678 |
Regulatory, trust and filing | 29,410 | 34,038 | 20,209 |
Salaries and benefits | 89,762 | 189,021 | 317,319 |
Shareholder communications | 3,706 | 3,961 | 11,122 |
Operating expenses | (201,081) | (322,605) | (486,840) |
Impairment of mineral property interest (note 4) | (1) | (891,626) | |
Interest income | 2,112 | 2,971 | 10,750 |
Interest expense | (17,385) | (42,606) | |
Foreign exchange loss | (984) | (2,076) | |
Gain on settlement of debenture (note 7) | 431,645 | ||
Income (loss) and comprehensive income (loss) for the year | CAD (199,953) | CAD 92,549 | CAD (1,410,322) |
Basic and diluted income (loss) per common share | CAD (0.01) | CAD (0.05) | |
Weighted average number of common shares outstanding (basic and dilutive) | 29,299,513 | 29,299,513 | 27,299,513 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Deficiency - CAD | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Shares Capital [Member] | |||
Balance | CAD 26,090,118 | CAD 26,050,118 | CAD 26,050,118 |
Balance, shares | 29,299,513 | 27,299,513 | 27,299,513 |
Loss for the year | |||
Common shares issued for debenture settlement | CAD 40,000 | ||
Common shares issued for debenture settlement, shares | 2,000,000 | ||
Balance | CAD 26,090,118 | CAD 26,090,118 | CAD 26,050,118 |
Balance, shares | 29,299,513 | 29,299,513 | 27,299,513 |
Reserves Equity-settled Share-based Payments | |||
Balance | CAD 592,011 | CAD 592,011 | CAD 592,011 |
Loss for the year | |||
Common shares issued for debenture settlement | |||
Balance | 592,011 | 592,011 | 592,011 |
Accumulated Deficit [Member] | |||
Balance | (29,548,511) | (29,641,060) | (28,230,738) |
Loss for the year | (199,953) | 92,549 | (1,410,322) |
Common shares issued for debenture settlement | |||
Balance | (29,748,464) | (29,548,511) | (29,641,060) |
Balance | (2,866,382) | (2,998,931) | (1,588,609) |
Loss for the year | (199,953) | 92,549 | (1,410,322) |
Common shares issued for debenture settlement | 40,000 | ||
Balance | CAD (3,066,335) | CAD (2,866,382) | CAD (2,998,931) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Cash flows from operating activities: | |||
Income (loss) for the year | CAD (199,953) | CAD 92,549 | CAD (1,410,322) |
Adjusted for: | |||
Impairment of mineral property interest | 1 | 891,626 | |
Interest income | (2,112) | (2,971) | (10,750) |
Interest expense | 17,385 | 42,606 | |
Gain on settlement of debenture | (431,645) | ||
Changes in non-cash working capital items: | |||
Amounts receivable and other assets - current | 527 | 9,650 | (4,915) |
Amounts receivable and other assets - non-current | 8,295 | ||
Amounts payable and other liabilities | 216 | 2 | (871) |
Due to a related party | 118,722 | 205,167 | 16,201 |
Restricted cash | 38,563 | ||
Net cash used in operating activities | (82,600) | (109,862) | (429,567) |
Cash flows from investing activities: | |||
Interest received | 2,112 | 2,971 | 10,750 |
Net cash provided by investing activities | 2,112 | 2,971 | 10,750 |
Cash flows from financing activities: | |||
Principal payment on convertible debenture | (28,355) | (100,000) | |
Interest paid on convertible debenture | (20,342) | (44,517) | |
Net cash used in financing activities | (48,697) | (144,517) | |
Decrease in cash and cash equivalents | (80,488) | (155,588) | (563,334) |
Cash and cash equivalents, beginning of year | 306,398 | 461,986 | 1,025,320 |
Cash and cash equivalents, end of year | 225,910 | 306,398 | 461,986 |
Supplemental cash flow information: | |||
Components of cash | 225,910 | 306,398 | 461,986 |
Components of cash equivalents | |||
Total supplemental cash flow | 225,910 | 306,398 | 461,986 |
Non cash investing and financing activities: | |||
Settlement of debenture paid through issuance of shares | CAD 40,000 |
Nature and Continuance of Opera
Nature and Continuance of Operations | 12 Months Ended |
Jul. 31, 2017 | |
Nature And Continuance Of Operations | |
Nature and Continuance of Operations | 1. Nature and Continuance of Operations Quartz Mountain Resources Ltd. (“Quartz Mountain” or the “Company”) is a Canadian public company incorporated in British Columbia on August 3, 1982. The Company’s corporate office is located at 1040 West Georgia Street, 15th Floor, Vancouver, British Columbia, Canada. The Company is primarily engaged in the acquisition and exploration of mineral properties. These consolidated financial statements (the “Financial Statements”) of the Company as at and for the year ended July 31, 2017 include Quartz Mountain Resources Ltd. and its subsidiaries (together referred to as the “Company”). Quartz Mountain Resources Ltd. is the ultimate parent entity of the group. These Financial Statements have been prepared on a going concern basis, which contemplates the realization of assets and discharge of liabilities in the normal course of business for the foreseeable future. As at July 31, 2017, the Company had cash and cash equivalents of $225,910, a working capital deficit, and negative net assets. The Company’s continuing operations are dependent upon new projects, the ability of the Company to obtain the necessary financing to complete exploration and development of these new projects, the ability to obtain the necessary permits to mine new projects and the future profitable production of any mine. General market conditions for junior exploration companies have resulted in depressed equity prices. These material uncertainties raise substantial doubt on the ability of the Company to continue as a going concern. Substantially all of the Company’s liabilities at July 31, 2017 were payable to Hunter Dickinson Services Inc. ("HDSI"), a related party with whom the Company has reached a debt settlement agreement (note 8(b)). Additional debt or equity financing will be required to fund acquisition and exploration of mineral property interests. There can be no assurance that the Company will be able to obtain additional financial resources or achieve positive cash flows. If the Company is unable to obtain adequate additional financing, it will need to curtail its expenditures further, until additional funds can be raised through financing activities. These Financial Statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2017 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies (a) Statement of compliance These Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”) effective for the Company’s fiscal year ended July 31, 2017. The Company’s Board of Directors authorized issuance of these Financial Statements on October 3, 2017. (b) Basis of presentation These Financial Statements have been prepared on a historical cost basis, except for financial instruments measured at fair value. In addition, these Financial Statements have been prepared using the accrual basis of accounting, except for cash flow information. (c) Significant accounting estimates and judgments The preparation of financial statements in conformity with IFRS 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. The impact of such estimates is pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that management believes are reasonable under the circumstances. Changes in the subjective inputs and assumptions can materially affect fair value estimates. Specific areas where significant estimates or judgements exist are: Sources of estimation uncertainty: ● Provisions for income taxes are an estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these provisions at the end of each reporting period. However, it is possible that at some future date a change in tax liabilities or taxes recoverable could result from audits by taxation authorities. Where the outcome of these tax-related matters is different from the amounts that were originally recorded, such differences will affect the tax provisions in the period in which such determination is made. Critical accounting judgments: ● Assessment of the Company’s ability to continue as a going concern; (d) Basis of consolidation These consolidated financial statements include the accounts of the Company and the subsidiaries that it controls. Control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated upon consolidation. At July 31, 2017 and July 31, 2016, the Company held an ownership interest in the following subsidiaries: Name of Subsidiary Place of Incorporation Ownership Interest Principal Activity QZMG Resources Ltd. Nevada 100% Holding company Wavecrest Resources Inc. Delaware 100% Holding company (e) Foreign currency The functional and presentation currency of the Company and its subsidiary, as at July 31, 2017, is the Canadian dollar. Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the period end date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated. Gains and losses arising on translation are included in profit or loss for the period. (f) Financial instruments Financial assets The Company classifies its financial assets into one of the following categories as follows: Fair value through profit or loss - This category comprises derivatives and financial assets acquired principally for the purpose of selling or repurchasing in the near term. They are carried at fair value with changes in fair value recognized in profit or loss. Loans and receivables - These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are carried at amortized cost using the effective interest method less any provision for impairment. Held-to-maturity investments - These assets are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Company’s management has the positive intention and ability to hold to maturity. These assets are measured at amortized cost using the effective interest method less any provision for impairment. If there is objective evidence that the asset is impaired, determined by reference to external credit ratings and other relevant indicators, the financial asset is measured at the present value of estimated future cash flows. Any changes to the carrying amount of the investment, including impairment losses, are recognized in profit or loss. Available-for-sale - Non-derivative financial assets not included in the above categories are classified as available-for-sale. They are carried at fair value with changes in fair value recognized in other comprehensive income (loss). Where a decline in the fair value of an available-for-sale financial asset constitutes objective evidence of impairment, the amount of the loss is removed from accumulated other comprehensive income (loss) and recognized in profit or loss. All financial assets except those measured at fair value through profit or loss are subject to review for impairment at least at each reporting date. Financial assets are impaired when there is objective evidence of impairment as a result of one or more events that have occurred after initial recognition of the asset and that event has an impact on the estimated future cash flows of the financial asset or the group of financial assets. The Company has classified its cash and cash equivalents as fair value through profit or loss and amounts receivable as loans and receivables. Financial liabilities The Company classifies its financial liabilities into one of two categories as follows: Fair value through profit or loss - This category comprises derivatives and financial liabilities incurred principally for the purpose of selling or repurchasing in the near term. They are carried at fair value with changes in fair value recognized in profit or loss. Other financial liabilities: This category consists of liabilities carried at amortized cost using the effective interest method. The Company classified its amounts payable and other liabilities and due to related party balances as other financial liabilities. Impairment of financial assets: Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. Objective evidence of impairment could include: ● significant financial difficulty of the issuer or counterparty; or ● default or delinquency in interest or principal payments; or ● it becoming probable that the borrower will enter bankruptcy or financial re-organization. For certain categories of financial assets, such as amounts receivable, assets that are assessed not to be impaired individually are subsequently assessed for impairment on a collective basis. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of amounts receivable, where the carrying amount is reduced through the use of an allowance account. When an amount receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. (g) Exploration and evaluation expenditures Exploration and evaluation expenditures are expenditures incurred by the Company in connection with the exploration for and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. Exploration and evaluation expenditures are expensed as incurred, except for initial expenditures associated with the acquisition of exploration and evaluation assets through a business combination or an asset acquisition. Exploration and evaluation expenditures include the cash consideration and the estimated fair market value of common shares on the date of issue or as otherwise provided under the relevant agreements. Costs for properties for which the Company does not possess unrestricted ownership and exploration rights, such as option agreements, are expensed in the period incurred or until a feasibility study has determined that the property is capable of commercial production. Administrative expenditures related to exploration activities are expensed in the period incurred. Mineral property interests Expenditures incurred by the Company in connection with a mineral property after the technical feasibility and commercial viability of extracting a mineral resource are demonstrable are capitalized. Such amounts are then amortized over the estimated life of the property following the commencement of commercial production, or are written off if the property is sold, allowed to lapse or abandoned, or when impairment has been determined to have occurred. Mineral property interests, if any, are assessed for impairment if (i) sufficient data exists to determine technical feasibility and commercial viability, and (ii) facts and circumstances suggest that the carrying amount exceeds the recoverable amount. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, mineral property interests attributable to that area of interest are first tested for impairment and then reclassified to mineral property and development assets within property, plant and equipment. Recoverability of the carrying amount of mineral property interests is dependent on successful development and commercial exploitation, or alternatively, a sale of the respective areas of interest. (h) Impairment of non-financial assets At the end of each reporting period the carrying amounts of the Company’s assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the greater of (i) fair value less costs to sell, and (ii) value in use. Fair value is estimated 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 discount rate that reflects current assessments of the Company’s cost of capital 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 an impairment loss is recognized in profit or loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs. Where 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. (i) Share capital Common shares are classified as equity. Transaction costs directly attributable to the issuance of common shares and share purchase options are recognized as a deduction from equity, net of any tax effects. (j) Loss per share Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised and that proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods. For the years presented, there was no impact on loss per share from the potentially dilutive securities. (k) Share-based payments Share-based payments to employees and others providing similar services are measured at the fair value of the instruments at the grant date. The fair value determined at the grant date is charged to operations over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest. The Company revises the estimate on each reporting date and the effect of the change is recognized in profit or loss. Share-based payment transactions with other parties are measured at the fair value of the goods or services received, except where the fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. (l) Rehabilitation provision An obligation to incur rehabilitation and site restoration costs arises when environmental disturbance is caused by the exploration, development or ongoing production of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their net present value, are provided for and capitalized at the start of each project, as soon as the obligation to incur such costs arises. These costs are charged against earnings over the life of the operation. The Company has no material rehabilitation and site restoration costs. (m) Income taxes Income tax on profit or loss for the periods presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in shareholders’ deficiency, in which case it is recognized in shareholders’ deficiency. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year-end, adjusted for amendments to tax payable with regards to previous years. Deferred tax is calculated by providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: ● goodwill not deductible for tax purposes; ● the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and ● differences relating to investments in subsidiaries, associates, and joint ventures to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the end of the reporting period applicable to the period of expected realization or settlement. A deferred tax asset is recognized only 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. (n) Government assistance When the Company is entitled to receive mineral exploration tax credits and other government grants, these amounts are recognized as a cost recovery within exploration and evaluation expenditures when there is reasonable assurance of their recovery. (o) Compound financial instruments Compound financial instruments issued by the Company comprise a convertible debenture that can be converted into a fixed number of the Company’s common shares at the option of the holder. The liability component of a compound financial instrument is recognized initially at the fair value of a similar liability that does not have an equity conversion option. The equity component, if any, is recognized initially as the difference between the estimated fair value of the compound financial instrument as a whole and the estimated fair value of the liability component. Directly attributable transaction costs, if material, are allocated to the liability and equity components in proportion to their initial carrying amounts. (p) Changes in accounting policies and new accounting pronouncements Accounting standards issued but not yet effective: Effective for annual periods beginning on or after January 1, 2018: ● IFRS 9, Financial Instruments ● IFRS 15, Revenue from Contracts with Customers Effective for annual periods beginning on or after January 1, 2019: ● IFRS 16, Leases and revised IAS 17, Leases The Company has not early adopted these new standards or amendments to existing standards and does not expect the impact of these standards on the Company’s financial statements to be material. |
Amounts Receivable and Other As
Amounts Receivable and Other Assets | 12 Months Ended |
Jul. 31, 2017 | |
Amounts Receivable And Other Assets | |
Amounts Receivable and Other Assets | 3. Amounts Receivable and Other Assets July 31, 2017 July 31, 2016 Current: Sales tax receivable $ 1,191 $ 4,525 Prepaid insurance 5,051 2,244 Total $ 6,242 $ 6,769 |
Mineral Property Interests
Mineral Property Interests | 12 Months Ended |
Jul. 31, 2017 | |
Mineral Property Interests | |
Mineral Property Interests | 4. Mineral Property Interests July 31, 2017 July 31,2016 Angel’s Camp royalty $ 1 $ 1 Total $ 1 $ 1 (a) Angel’s Camp Property The Company retains a 1% net smelter return royalty payable to the Company on any production from the Angel’s Camp property located in Lake County, Oregon. The royalty is recorded at a nominal amount of $1. (b) Galaxie Project In August 2012, Quartz Mountain acquired the Galaxie Project from Finsbury Exploration Ltd. (“Finsbury”), a related party with several directors in common with the Company. At July 31, 2015, due to uncertainty in the capital markets prevailing at the time, the Company wrote down its mineral property interest in the Galaxie Project by $891,626 to a nominal value of $1. During the year ended July 31, 2016, pursuant to a debt settlement agreement (note 7), the Company transferred its mineral property interest in the Gnat Property to Bearclaw Capital Corp, a private company from which the Company acquired the Gnat Property in exchange for, among other considerations, its convertible debenture. The Company let all other mineral claims in the Galaxie Project lapse and the nominal value of $1 was written off during the year ended July 31, 2016. (c) ZNT Project At July 31, 2016, the Company held a 100% interest in the ZNT property located in central British Columbia, near the town of Smithers, British Columbia. The property was staked by Quartz Mountain in 2012. During the year ended July 31, 2017, the Company let all other mineral claims in the ZNT Project lapse. |
Capital and Reserves
Capital and Reserves | 12 Months Ended |
Jul. 31, 2017 | |
Capital And Reserves | |
Capital and Reserves | 5. Capital and Reserves (a) Authorized share capital At July 31, 2017, the authorized share capital of the Company comprised an unlimited number of common shares without par value and an unlimited number of preferred shares without par value. No preferred shares have been issued to date. All issued common shares are fully paid. (b) Equity-settled share-based payments The Company has a share purchase option plan (the “Plan”) approved by the Company’s shareholders that allows the Board of Directors to grant share purchase options, subject to regulatory terms and approval, to its officers, directors, employees, and service providers. The Plan is based on the maximum number of eligible shares equaling 10% of the Company’s outstanding common shares, calculated from time to time. The exercise price of each share purchase option is set by the Board of Directors at the time of grant but cannot be less than the five-day volume weighted average trading price of the Company's shares calculated on the day prior to the grant. Share purchase options may have a maximum term of up to five years and typically terminate 90 days following the termination of the optionee's employment or engagement, except in the case of retirement or death. The vesting period for share purchase options is at the discretion of the Board of Directors at the time the options are granted. The following summarizes the changes in the Company’s share purchase options: Number of options with an exercise price of $0.45 Year ended July 31 2017 2016 2015 Options outstanding at beginning of year 768,000 828,000 1,587,000 Forfeited during the year – (60,000 ) (36,900 ) Expired during the year (768,000 ) – (722,100 ) Options outstanding and exercisable at the end of year – 768,000 828,000 The weighted average contractual remaining life of the share purchase options outstanding and exercisable at July 31, 2017 was nil (July 31, 2016 – 0.47 years, July 31, 2015 – 1.47 years). |
Amounts Payable and Other Liabi
Amounts Payable and Other Liabilities | 12 Months Ended |
Jul. 31, 2017 | |
Amounts Payable And Other Liabilities | |
Amounts Payable and Other Liabilities | 6. Amounts Payable and Other Liabilities 2017 2016 Amounts payable $ 1,323 $ 1,107 |
Convertible Debenture
Convertible Debenture | 12 Months Ended |
Jul. 31, 2017 | |
Convertible Debenture | |
Convertible Debenture | 7. Convertible debenture Pursuant to the purchase of the Gnat Property (note 4(b)) in fiscal year 2013, the Company issued an unsecured $650,000 convertible debenture (the “Debenture”) with an original maturity date of October 31, 2013, to the vendor, Bearclaw Capital Corp. (“Bearclaw”), as part of the purchase price. From inception to October 1, 2014, a series of amendments to the Debenture agreement were made, and principal payments totalling $100,000 had been paid. In January 2016, the Company reached an agreement with Bearclaw Capital Corp. whereby Bearclaw forgave a convertible debenture with an amount owing of $500,000 in exchange of the following consideration: a) a cash payment of $29,793 (including accrued interest of $1,438); b) 2 million of the Company’s common shares with fair value of $40,000; and c) the transfer of the Gnat Property resulting in a gain on settlement of debenture in the amount of $431,645. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Jul. 31, 2017 | |
Related Party Balances And Transactions - Disclosure Of Information About Outstanding Balances Details | |
Related Party Balances and Transactions | 8. Related Party Balances and Transactions (a) Transactions with Key Management Personnel Key management personnel are those persons that have the authority and responsibility for planning, directing and controlling the activities of the Company, directly and indirectly, and by definition include the directors of the Company. The Company compensated key management personnel as follows: Year ended July 31 2017 2016 2015 Short-term employee benefits, including salaries and directors fees $ 39,000 $ 94,000 $ 160,000 Short-term employee benefits include salaries, director’s fees and amounts paid to HDSI (note 8(b)) for services provided to the Company by certain HDSI personnel who serve as directors or officers of the Company. (b) Entities with Significant Influence over the Company The Company’s management believes that Hunter Dickinson Services Inc. (“HDSI”), a private entity, has the power to participate in the financial or operating policies of the Company. Scott Cousens, Robert Dickinson, and Ronald Thiessen, are directors of both the Company and HDSI. Michael Lee and Trevor Thomas are officers of the Company and are employees of HDSI. Pursuant to a management agreement between the Company and HDSI, dated July 2, 2010, the Company receives geological, engineering, corporate development, administrative, management and shareholder communication services from HDSI. These services are provided based on annually set rates. HDSI also incurs third party costs on behalf of the Company on a full-cost recovery basis. Transactions with HDSI parties were as follows: Year ended July 31 2017 2016 2015 HDSI: Services received based on management services agreement $ 88,000 $ 171,000 $ 252,000 HDSI: Reimbursement of third party expenses paid 35,000 42,000 70,000 Outstanding balances were as follows: July 31, 2017 July 31, 2016 Balance payable to HDSI $ 3,297,165 $ 3,178,443 In January 2016, the Company and HDSI reached an agreement whereby HDSI agreed to forgive the balance due to HDSI in the net amount of $3,086,089 if the Company completes the following: ● make a cash payment of $180,207 to HDSI; and ● issue 6 million shares to HDSI. Completion of the settlement agreement with HDSI has been deferred and will occur at a mutually agreed date. |
Operating Segments
Operating Segments | 12 Months Ended |
Jul. 31, 2017 | |
Disclosure of operating segments [abstract] | |
Operating Segments | 9. Operating Segments The Company operates in a single reportable operating segment – the acquisition, exploration and evaluation of mineral property interests. The Company is currently focused on the acquisition and exploration of mineral property interests in Canada. |
Taxation
Taxation | 12 Months Ended |
Jul. 31, 2017 | |
Major components of tax expense (income) [abstract] | |
Taxation | 10. Taxation (a) Provision for current tax No provision has been made for current income taxes, as the Company has no taxable income. (b) Provision for deferred tax As future taxable profits of the Company are uncertain, no deferred tax asset has been recognized. As at July 31, 2017, the Company had unused non-capital loss carry forwards of approximately $5,441,000 (2016 – $5,236,000) in Canada and $46,000 (2016 – $48,000) in the United States. The Company had approximately $4,334,000 (2016 – $4,358,000) of resource tax pools available, which may be used to shelter certain resource income. Reconciliation of effective tax rate: Year ended July 31 2017 2016 2015 Income (loss) for the year $ (199,953 ) $ 92,549 $ (1,410,322 ) Income tax expense – – – Income (loss) excluding income tax $ (199,953 ) $ 92,549 $ (1,410,322 ) Income tax expense (recovery) using the Company’s domestic tax rate $ (52,000 ) $ 24,000 $ (367,000 ) Non-deductible (deductible) expenses and other 1,000 (2,000 ) 31,000 Change in deferred tax rates – – (2,000 ) Differences in statutory tax rates – – (1,000 ) Changes in unrecognized temporary differences 51,000 (22,000 ) 339,000 $ – $ – $ – The Company’s domestic tax rate during the year ended July 31, 2017 was 26% (2016 – 26%; 2015 – 26%) and the effective tax rate was nil (2016 – nil; 2015 – nil). As at July 31, 2017, the Company had the following balances in respect of which no deferred tax assets had been recognized: Expiry: Tax losses Resource pools Equipment and other Within one year $ – $ – $ – One to five years – – – After five years 5,487,000 – 82,000 No expiry date – 4,334,000 113,000 $ 5,487,000 $ 4,334,000 $ 195,000 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jul. 31, 2017 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments | 11. Financial instruments Financial assets and liabilities are classified in the fair value hierarchy according to the lowest level of input that is significant to the fair value measurement. Assessment of the significance of a particular input to the fair value measurement requires judgement and may affect placement within the fair value hierarchy levels. The hierarchy is as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). The carrying value of cash and cash equivalents, amounts receivable, amounts payable and other liabilities and due to related party approximates fair value due to the short-term nature of the financial instruments. Cash and cash equivalents is classified as fair value through profit or loss and measured at fair value using level 1 inputs. |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Jul. 31, 2017 | |
Financial Risk Management | |
Financial Risk Management | 12. Financial Risk Management The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board approves and monitors the risk management processes, inclusive of documented investment policies, counterparty limits, and controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows: (a) Credit risk Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents and amounts receivable. The Company limits its exposure to credit risk on liquid financial assets by only investing its cash and cash equivalents with high-credit quality financial institutions in business and savings accounts. The carrying value of the Company’s cash and cash equivalents and amounts receivable represent the maximum exposure to credit risk. (b) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations when they become due. The Company does not have sufficient capital in order to meet short-term business requirements, and accordingly is exposed to liquidity risk. The following obligations existed at July 31, 2017: Total Less than 1 year 1-5 years Amounts payable and other liabilities (note 6) $ 1,323 $ 1,323 $ – Due to related party (note 7) 3,294,583 3,294,583 – Total $ 3,295,906 $ 3,295,906 $ – The following obligations existed at July 31, 2016: Total Less than 1 year 1-5 years Amounts payable and other liabilities (note 6) $ 1,107 $ 1,107 $ – Due to related party (note 7) 3,178,443 3,178,443 – Total $ 3,179,550 $ 3,179,550 $ – (c) Interest rate risk The Company’s exposure to interest rate risk arises from the interest rate impact on cash and cash equivalents. The Company’s practice has been to invest cash at floating rates of interest, in order to maintain liquidity, while achieving a satisfactory return for shareholders. There is minimal risk that the Company would recognize any loss because of a decrease in the fair value of any guaranteed bank investment certificates included in cash and cash equivalents as they are generally held with large financial institutions. The Company from time to time has debt instruments and is exposed to risk in the event of interest rate fluctuations. The Company has not entered into any interest rate swaps or other financial arrangements that mitigate the exposure to interest rate fluctuations. (d) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The Company is not subject to significant market risk. (e) Capital management objectives The Company’s primary objectives when managing capital are to safeguard the Company’s ability to continue as a going concern, so that it can continue to potentially provide returns for shareholders, and to have sufficient liquidity available to fund ongoing expenditures and suitable business opportunities as they arise. The Company considers the components of shareholders' deficiency as capital. The Company manages its capital structure and adjusts it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may issue equity, sell assets, or return capital to shareholders as well as issue or repay debt. The Company’s investment policy is to invest its cash in highly liquid short–term interest–bearing investments having maturity dates of three months or less from the date of acquisition and that are readily convertible to known amounts of cash. There were no changes to the Company’s approach to capital management during the year ended July 31, 2017. The Company is not subject to any externally imposed equity requirements. |
Significant Accounting Polici18
Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2017 | |
Significant Accounting Policies | |
Statement of Compliance | (a) Statement of compliance These Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”) effective for the Company’s fiscal year ended July 31, 2017. The Company’s Board of Directors authorized issuance of these Financial Statements on October 3, 2017. |
Basis of Presentation | (b) Basis of presentation These Financial Statements have been prepared on a historical cost basis, except for financial instruments measured at fair value. In addition, these Financial Statements have been prepared using the accrual basis of accounting, except for cash flow information. |
Significant Accounting Estimates and Judgments | (c) Significant accounting estimates and judgments The preparation of financial statements in conformity with IFRS 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. The impact of such estimates is pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that management believes are reasonable under the circumstances. Changes in the subjective inputs and assumptions can materially affect fair value estimates. Specific areas where significant estimates or judgements exist are: Sources of estimation uncertainty: ● Provisions for income taxes are an estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these provisions at the end of each reporting period. However, it is possible that at some future date a change in tax liabilities or taxes recoverable could result from audits by taxation authorities. Where the outcome of these tax-related matters is different from the amounts that were originally recorded, such differences will affect the tax provisions in the period in which such determination is made. Critical accounting judgments: ● Assessment of the Company’s ability to continue as a going concern; |
Basis of Consolidation | (d) Basis of consolidation These consolidated financial statements include the accounts of the Company and the subsidiaries that it controls. Control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated upon consolidation. At July 31, 2017 and July 31, 2016, the Company held an ownership interest in the following subsidiaries: Name of Subsidiary Place of Incorporation Ownership Interest Principal Activity QZMG Resources Ltd. Nevada 100% Holding company Wavecrest Resources Inc. Delaware 100% Holding company |
Foreign Currency | (e) Foreign currency The functional and presentation currency of the Company and its subsidiary, as at July 31, 2017, is the Canadian dollar. Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the period end date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated. Gains and losses arising on translation are included in profit or loss for the period. |
Financial Instruments | (f) Financial instruments Financial assets The Company classifies its financial assets into one of the following categories as follows: Fair value through profit or loss - This category comprises derivatives and financial assets acquired principally for the purpose of selling or repurchasing in the near term. They are carried at fair value with changes in fair value recognized in profit or loss. Loans and receivables - These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are carried at amortized cost using the effective interest method less any provision for impairment. Held-to-maturity investments - These assets are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Company’s management has the positive intention and ability to hold to maturity. These assets are measured at amortized cost using the effective interest method less any provision for impairment. If there is objective evidence that the asset is impaired, determined by reference to external credit ratings and other relevant indicators, the financial asset is measured at the present value of estimated future cash flows. Any changes to the carrying amount of the investment, including impairment losses, are recognized in profit or loss. Available-for-sale - Non-derivative financial assets not included in the above categories are classified as available-for-sale. They are carried at fair value with changes in fair value recognized in other comprehensive income (loss). Where a decline in the fair value of an available-for-sale financial asset constitutes objective evidence of impairment, the amount of the loss is removed from accumulated other comprehensive income (loss) and recognized in profit or loss. All financial assets except those measured at fair value through profit or loss are subject to review for impairment at least at each reporting date. Financial assets are impaired when there is objective evidence of impairment as a result of one or more events that have occurred after initial recognition of the asset and that event has an impact on the estimated future cash flows of the financial asset or the group of financial assets. The Company has classified its cash and cash equivalents as fair value through profit or loss and amounts receivable as loans and receivables. Financial liabilities The Company classifies its financial liabilities into one of two categories as follows: Fair value through profit or loss - This category comprises derivatives and financial liabilities incurred principally for the purpose of selling or repurchasing in the near term. They are carried at fair value with changes in fair value recognized in profit or loss. Other financial liabilities: This category consists of liabilities carried at amortized cost using the effective interest method. The Company classified its amounts payable and other liabilities and due to related party balances as other financial liabilities. Impairment of financial assets: Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. Objective evidence of impairment could include: ● significant financial difficulty of the issuer or counterparty; or ● default or delinquency in interest or principal payments; or ● it becoming probable that the borrower will enter bankruptcy or financial re-organization. For certain categories of financial assets, such as amounts receivable, assets that are assessed not to be impaired individually are subsequently assessed for impairment on a collective basis. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of amounts receivable, where the carrying amount is reduced through the use of an allowance account. When an amount receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. |
Exploration and Evaluation Expenditures | (g) Exploration and evaluation expenditures Exploration and evaluation expenditures are expenditures incurred by the Company in connection with the exploration for and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. Exploration and evaluation expenditures are expensed as incurred, except for initial expenditures associated with the acquisition of exploration and evaluation assets through a business combination or an asset acquisition. Exploration and evaluation expenditures include the cash consideration and the estimated fair market value of common shares on the date of issue or as otherwise provided under the relevant agreements. Costs for properties for which the Company does not possess unrestricted ownership and exploration rights, such as option agreements, are expensed in the period incurred or until a feasibility study has determined that the property is capable of commercial production. Administrative expenditures related to exploration activities are expensed in the period incurred. Mineral property interests Expenditures incurred by the Company in connection with a mineral property after the technical feasibility and commercial viability of extracting a mineral resource are demonstrable are capitalized. Such amounts are then amortized over the estimated life of the property following the commencement of commercial production, or are written off if the property is sold, allowed to lapse or abandoned, or when impairment has been determined to have occurred. Mineral property interests, if any, are assessed for impairment if (i) sufficient data exists to determine technical feasibility and commercial viability, and (ii) facts and circumstances suggest that the carrying amount exceeds the recoverable amount. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, mineral property interests attributable to that area of interest are first tested for impairment and then reclassified to mineral property and development assets within property, plant and equipment. Recoverability of the carrying amount of mineral property interests is dependent on successful development and commercial exploitation, or alternatively, a sale of the respective areas of interest. |
Impairment of Non-financial Assets | (h) Impairment of non-financial assets At the end of each reporting period the carrying amounts of the Company’s assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the greater of (i) fair value less costs to sell, and (ii) value in use. Fair value is estimated 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 discount rate that reflects current assessments of the Company’s cost of capital 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 an impairment loss is recognized in profit or loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs. Where 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. |
Share Capital | (i) Share capital Common shares are classified as equity. Transaction costs directly attributable to the issuance of common shares and share purchase options are recognized as a deduction from equity, net of any tax effects. |
Loss Per Share | (j) Loss per share Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised and that proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods. For the years presented, there was no impact on loss per share from the potentially dilutive securities. |
Share-based Payments | (k) Share-based payments Share-based payments to employees and others providing similar services are measured at the fair value of the instruments at the grant date. The fair value determined at the grant date is charged to operations over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest. The Company revises the estimate on each reporting date and the effect of the change is recognized in profit or loss. Share-based payment transactions with other parties are measured at the fair value of the goods or services received, except where the fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. |
Rehabilitation Provision | (l) Rehabilitation provision An obligation to incur rehabilitation and site restoration costs arises when environmental disturbance is caused by the exploration, development or ongoing production of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their net present value, are provided for and capitalized at the start of each project, as soon as the obligation to incur such costs arises. These costs are charged against earnings over the life of the operation. The Company has no material rehabilitation and site restoration costs. |
Income Taxes | (m) Income taxes Income tax on profit or loss for the periods presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in shareholders’ deficiency, in which case it is recognized in shareholders’ deficiency. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year-end, adjusted for amendments to tax payable with regards to previous years. Deferred tax is calculated by providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: ● goodwill not deductible for tax purposes; ● the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and ● differences relating to investments in subsidiaries, associates, and joint ventures to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the end of the reporting period applicable to the period of expected realization or settlement. A deferred tax asset is recognized only 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. |
Government Assistance | (n) Government assistance When the Company is entitled to receive mineral exploration tax credits and other government grants, these amounts are recognized as a cost recovery within exploration and evaluation expenditures when there is reasonable assurance of their recovery. |
Compound Financial Instruments | (o) Compound financial instruments Compound financial instruments issued by the Company comprise a convertible debenture that can be converted into a fixed number of the Company’s common shares at the option of the holder. The liability component of a compound financial instrument is recognized initially at the fair value of a similar liability that does not have an equity conversion option. The equity component, if any, is recognized initially as the difference between the estimated fair value of the compound financial instrument as a whole and the estimated fair value of the liability component. Directly attributable transaction costs, if material, are allocated to the liability and equity components in proportion to their initial carrying amounts. |
Changes in Accounting Policies and New Accounting Pronouncements | (p) Changes in accounting policies and new accounting pronouncements Accounting standards issued but not yet effective: Effective for annual periods beginning on or after January 1, 2018: ● IFRS 9, Financial Instruments ● IFRS 15, Revenue from Contracts with Customers Effective for annual periods beginning on or after January 1, 2019: ● IFRS 16, Leases and revised IAS 17, Leases The Company has not early adopted these new standards or amendments to existing standards and does not expect the impact of these standards on the Company’s financial statements to be material. |
Significant Accounting Polici19
Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Significant Accounting Policies | |
Disclosure of Information About Company Held an Ownership Interest in Subsidiaries | At July 31, 2017 and July 31, 2016, the Company held an ownership interest in the following subsidiaries: Name of Subsidiary Place of Incorporation Ownership Interest Principal Activity QZMG Resources Ltd. Nevada 100% Holding company Wavecrest Resources Inc. Delaware 100% Holding company |
Amounts Receivable and Other 20
Amounts Receivable and Other Assets (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Amounts Receivable And Other Assets | |
Disclosure of Information About Amounts Receivable and Other Assets | July 31, 2017 July 31, 2016 Current: Sales tax receivable $ 1,191 $ 4,525 Prepaid insurance 5,051 2,244 Total $ 6,242 $ 6,769 |
Mineral Property Interests (Tab
Mineral Property Interests (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Mineral Property Interests | |
Disclosure of Information About Mineral Property Interests | July 31, 2017 July 31,2016 Angel’s Camp royalty $ 1 $ 1 Total $ 1 $ 1 |
Capital and Reserves (Tables)
Capital and Reserves (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Information About Stock Option Activity | The following summarizes the changes in the Company’s share purchase options: Number of options with an exercise price of $0.45 Year ended July 31 2017 2016 2015 Options outstanding at beginning of year 768,000 828,000 1,587,000 Forfeited during the year – (60,000 ) (36,900 ) Expired during the year (768,000 ) – (722,100 ) Options outstanding and exercisable at the end of year – 768,000 828,000 |
Amounts Payable and Other Lia23
Amounts Payable and Other Liabilities (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Amounts Payable And Other Liabilities | |
Disclosure of Information About Amounts Payable | 2017 2016 Amounts payable $ 1,323 $ 1,107 |
Related Party Balances and Tr24
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Related Party Balances And Transactions - Disclosure Of Information About Outstanding Balances Details | |
Disclosure of Information About Key Management Personnel | The Company compensated key management personnel as follows: Year ended July 31 2017 2016 2015 Short-term employee benefits, including salaries and directors fees $ 39,000 $ 94,000 $ 160,000 |
Disclosure of Information About Transactions with HDSI Parties | Transactions with HDSI parties were as follows: Year ended July 31 2017 2016 2015 HDSI: Services received based on management services agreement $ 88,000 $ 171,000 $ 252,000 HDSI: Reimbursement of third party expenses paid 35,000 42,000 70,000 |
Disclosure of Information About Outstanding Balances | Outstanding balances were as follows: July 31, 2017 July 31, 2016 Balance payable to HDSI $ 3,297,165 $ 3,178,443 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Major components of tax expense (income) [abstract] | |
Disclosure of Information About Income Reconciliation of Effective Tax Rate | Reconciliation of effective tax rate: Year ended July 31 2017 2016 2015 Income (loss) for the year $ (199,953 ) $ 92,549 $ (1,410,322 ) Income tax expense – – – Income (loss) excluding income tax $ (199,953 ) $ 92,549 $ (1,410,322 ) Income tax expense (recovery) using the Company’s domestic tax rate $ (52,000 ) $ 24,000 $ (367,000 ) Non-deductible (deductible) expenses and other 1,000 (2,000 ) 31,000 Change in deferred tax rates – – (2,000 ) Differences in statutory tax rates – – (1,000 ) Changes in unrecognized temporary differences 51,000 (22,000 ) 339,000 $ – $ – $ – |
Disclosure of Information About Provision for Deferred Tax Assets | As at July 31, 2017, the Company had the following balances in respect of which no deferred tax assets had been recognized: Expiry: Tax losses Resource pools Equipment and other Within one year $ – $ – $ – One to five years – – – After five years 5,487,000 – 82,000 No expiry date – 4,334,000 113,000 $ 5,487,000 $ 4,334,000 $ 195,000 |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Financial Risk Management | |
Disclosure of Information About Liquidity Risk Obligations | The following obligations existed at July 31, 2017: Total Less than 1 year 1-5 years Amounts payable and other liabilities (note 6) $ 1,323 $ 1,323 $ – Due to related party (note 7) 3,294,583 3,294,583 – Total $ 3,295,906 $ 3,295,906 $ – The following obligations existed at July 31, 2016: Total Less than 1 year 1-5 years Amounts payable and other liabilities (note 6) $ 1,107 $ 1,107 $ – Due to related party (note 7) 3,178,443 3,178,443 – Total $ 3,179,550 $ 3,179,550 $ – |
Nature and Continuance of Ope27
Nature and Continuance of Operations (Details Narrative) - CAD | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Nature And Continuance Of Operations | ||||
Cash and cash equivalents | CAD 225,910 | CAD 306,398 | CAD 461,986 | CAD 1,025,320 |
Significant Accounting Polici28
Significant Accounting Policies - Disclosure of Information About Company Held an Ownership Interest in Subsidiaries (Details) | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
QZMG Resources Ltd [Member] | ||
DisclosureOfSignificantAccountingPoliciesLineItems [Line Items] | ||
Name of subsidiary | QZMG Resources Ltd | QZMG Resources Ltd |
Place of incorporation | Nevada | Nevada |
Ownership interest | 100.00% | 100.00% |
Principal activity | Holding company | Holding company |
Wavecrest Resources Inc [Member] | ||
DisclosureOfSignificantAccountingPoliciesLineItems [Line Items] | ||
Name of subsidiary | Wavecrest Resources Inc | Wavecrest Resources Inc |
Place of incorporation | Delaware | Delaware |
Ownership interest | 100.00% | 100.00% |
Principal activity | Holding company | Holding company |
Amounts Receivable and Other 29
Amounts Receivable and Other Assets - Disclosure of Information About Amounts Receivable and Other Assets (Details) - CAD | Jul. 31, 2017 | Jul. 31, 2016 |
Amounts Receivable And Other Assets | ||
Sales tax receivable, current | CAD 1,191 | CAD 4,525 |
Prepaid insurance, current | 5,051 | 2,244 |
Total | CAD 6,242 | CAD 6,769 |
Mineral Property Interests (Det
Mineral Property Interests (Details Narrative) - CAD | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Angel's Camp Property [Member] | |||
DisclosureOfMineralPropertyInterestsLineItems [Line Items] | |||
Return royalty payable percentage | 1.00% | ||
Nominal amount from royalty | CAD 1 | ||
Galaxie Project [Member] | |||
DisclosureOfMineralPropertyInterestsLineItems [Line Items] | |||
Payment of mineral property interest | CAD 891,626 | ||
Nominal value | CAD 1 | CAD 1 | |
ZNT Property [Member] | |||
DisclosureOfMineralPropertyInterestsLineItems [Line Items] | |||
Property interest percentage | 100.00% |
Mineral Property Interests - Di
Mineral Property Interests - Disclosure of Information About Mineral Property Interests (Details) - CAD | Jul. 31, 2017 | Jul. 31, 2016 |
MineralPropertyInterestsLineItems [Line Items] | ||
Mineral property interests | CAD 1 | CAD 1 |
Angel's Camp Royalty [Member] | ||
MineralPropertyInterestsLineItems [Line Items] | ||
Mineral property interests | CAD 1 | CAD 1 |
Capital and Reserves (Details N
Capital and Reserves (Details Narrative) - Share Purchase Option Plan [Member] | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
DisclosureOfCapitalAndReservesLineItems [Line Items] | |||
Maximum number outstanding common shares, percentage | 10.00% | ||
weighted average contractual remaining life | 0 years | 5 months 20 days | 1 year 5 months 20 days |
Top of range [Member] | |||
DisclosureOfCapitalAndReservesLineItems [Line Items] | |||
Share purchase options, description | Share purchase options may have a maximum term of up to five years and typically terminate 90 days following the termination of the optionee's employment or engagement, except in the case of retirement or death. |
Capital and Reserves - Disclosu
Capital and Reserves - Disclosure of Information About Stock Option Activity (Details) - shares | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Capital And Reserves | |||
Options outstanding at beginning of year | 768,000 | 828,000 | 1,587,000 |
Forfeited during the year | (60,000) | (36,900) | |
Expired during the year | (768,000) | (722,100) | |
Options outstanding and exercisable at the end of year | 768,000 | 828,000 |
Capital and Reserves - Disclo34
Capital and Reserves - Disclosure of Information About Stock Option Activity (Details) (Parenthetical) - CAD / shares | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 |
Capital And Reserves | |||
Number of options with an exercise price | CAD 0.45 | CAD 0.45 | CAD 0.45 |
Amounts Payable and Other Lia35
Amounts Payable and Other Liabilities - Disclosure of Information About Amounts Payable (Details) - CAD | Jul. 31, 2017 | Jul. 31, 2016 |
Amounts Payable And Other Liabilities | ||
Amounts payable | CAD 1,323 | CAD 1,107 |
Convertible Debenture (Details
Convertible Debenture (Details Narrative) - CAD | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2013 | Oct. 01, 2014 | |
DisclosureOfConvertibleDebentureLineItems [Line Items] | ||||
Convertible debenture forgiveness amount | CAD 500,000 | |||
Bearclaw Capital Corp. [Member] | ||||
DisclosureOfConvertibleDebentureLineItems [Line Items] | ||||
Issuance of unsecured convertible debenture | CAD 650,000 | |||
Original maturity date | Oct. 31, 2013 | |||
Principal payments | CAD 100,000 | |||
Cash payment | CAD 29,793 | |||
Accrued interest | CAD 1,438 | |||
Number of common shares | 2,000,000 | |||
Fair value of common shares | CAD 40,000 | |||
Gain on settlement of debt | CAD 431,645 |
Related Party Balances and Tr37
Related Party Balances and Transactions (Details Narrative) - HDSI [Member] | 1 Months Ended |
Jan. 31, 2016CADshares | |
DisclosureOfRelatedPartyTransactionsAbstractLineItems [Line Items] | |
Repayment of related party debt | CAD 3,086,089 |
Cash payment | CAD 180,207 |
Number of common shares | shares | 6,000,000 |
Related Party Balances and Tr38
Related Party Balances and Transactions - Disclosure of Information About Key Management Personnel (Details) - CAD | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Related Party Balances And Transactions - Disclosure Of Information About Outstanding Balances Details | |||
Short-term employee benefits, including salaries and directors fees | CAD 39,000 | CAD 94,000 | CAD 160,000 |
Related Party Balances and Tr39
Related Party Balances and Transactions Disclosure of Information About Transactions with HDSI Parties (Details) - HDSI [Member] - CAD | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
DisclosureOfRelatedPartyTransactionsLineItems [Line Items] | |||
Services received based on management services agreement | CAD 88,000 | CAD 171,000 | CAD 252,000 |
Reimbursement of third party expenses paid | CAD 35,000 | CAD 42,000 | CAD 70,000 |
Related Party Balances and Tr40
Related Party Balances and Transactions - Disclosure of Information About Outstanding Balances (Details) - CAD | Jul. 31, 2017 | Jul. 31, 2016 |
Related Party Balances And Transactions - Disclosure Of Information About Outstanding Balances Details | ||
Balance payable to HDSI | CAD 3,297,165 | CAD 3,178,443 |
Operating Segments (Details Nar
Operating Segments (Details Narrative) | 12 Months Ended |
Jul. 31, 2017Integer | |
Disclosure of operating segments [abstract] | |
Number of operating segments | 1 |
Taxation (Details Narrative)
Taxation (Details Narrative) - CAD | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
MajorComponentsOfTaxExpenseIncomeAbstractLineItems [Line Items] | |||
Resource tax pools | CAD 4,334,000 | CAD 4,358,000 | |
Domestic tax rate | 26.00% | 26.00% | 26.00% |
Effective tax rate | 0.00% | 0.00% | |
Canada [Member] | |||
MajorComponentsOfTaxExpenseIncomeAbstractLineItems [Line Items] | |||
Unused non-capital loss carry forwards | CAD 5,441,000 | CAD 5,236,000 | |
United States [Member] | |||
MajorComponentsOfTaxExpenseIncomeAbstractLineItems [Line Items] | |||
Unused non-capital loss carry forwards | CAD 48,000 | CAD 46,000 |
Taxation - Disclosure of Inform
Taxation - Disclosure of Information About Income Reconciliation of Effective Tax Rate (Details) - CAD | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Major components of tax expense (income) [abstract] | |||
Income (loss) for the year | CAD (199,953) | CAD 92,549 | CAD (1,410,322) |
Income tax expense | |||
Income (loss) excluding income tax | (199,953) | 92,549 | (1,410,322) |
Income tax expense (recovery) using the Company's domestic tax rate | (52,000) | 24,000 | (367,000) |
Non-deductible (deductible) expenses and other | 1,000 | (2,000) | 31,000 |
Change in deferred tax rates | (2,000) | ||
Differences in statutory tax rates | (1,000) | ||
Changes in unrecognized temporary differences | 51,000 | (22,000) | 339,000 |
Reconciliation of effective tax rate (Total) |
Taxation - Disclosure of Info44
Taxation - Disclosure of Information About Provision for Deferred Tax Assets (Details) | Jul. 31, 2017CAD |
MajorComponentsOfTaxExpenseIncomeLineItems [Line Items] | |
Tax losses | CAD 5,487,000 |
Resource pools | 4,334,000 |
Equipment and other | 195,000 |
Within one year [Member] | |
MajorComponentsOfTaxExpenseIncomeLineItems [Line Items] | |
Tax losses | |
Resource pools | |
Equipment and other | |
One to five years [Member] | |
MajorComponentsOfTaxExpenseIncomeLineItems [Line Items] | |
Tax losses | |
Resource pools | |
Equipment and other | |
After five years [Member] | |
MajorComponentsOfTaxExpenseIncomeLineItems [Line Items] | |
Tax losses | 5,487,000 |
Resource pools | |
Equipment and other | 82,000 |
No expiry date [Member] | |
MajorComponentsOfTaxExpenseIncomeLineItems [Line Items] | |
Tax losses | |
Resource pools | 4,334,000 |
Equipment and other | CAD 113,000 |
Financial Risk Management - Dis
Financial Risk Management - Disclosure of Information About Liquidity Risk Obligations (Details) - CAD | Jul. 31, 2017 | Jul. 31, 2016 |
FinancialRiskDisclosureLineItems [Line Items] | ||
Amounts payable and other liabilities (note 6) | CAD 1,323 | CAD 1,107 |
Due to related party (note 7) | 3,297,165 | 3,178,443 |
Total | 3,295,906 | 3,179,550 |
Within one year [Member] | ||
FinancialRiskDisclosureLineItems [Line Items] | ||
Amounts payable and other liabilities (note 6) | 1,323 | 1,107 |
Due to related party (note 7) | 3,294,583 | 3,178,443 |
Total | 3,295,906 | 3,179,550 |
One to five years [Member] | ||
FinancialRiskDisclosureLineItems [Line Items] | ||
Amounts payable and other liabilities (note 6) | ||
Due to related party (note 7) | ||
Total |