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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Silver Bull Resources Inc (QB) | USOTC:SVBL | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.0084 | 8.12% | 0.1119 | 0.0865 | 0.116 | 0.1119 | 0.10 | 0.10005 | 1,903 | 21:00:01 |
R
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED
October 31, 2018
|
£
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD OF _________ TO _________.
|
Nevada
|
91-1766677
|
State or other jurisdiction of incorporation or organization
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
☐
|
Accelerated filer
☐
|
|
Non-accelerated filer
☐
|
Smaller reporting company
R
|
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Emerging growth company
☐
|
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Page
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PART I
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Items 1 and 2.
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BUSINESS AND PROPERTIES
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7
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Items 1A.
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RISK FACTORS
|
14
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Items 1B.
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UNRESOLVED STAFF COMMENTS
|
20
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Items 3.
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LEGAL PROCEEDINGS
|
20
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Items 4.
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MINE SAFETY DISCLOSURES
|
20
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PART II
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Item 5.
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MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
21
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Item 6.
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SELECTED FINANCIAL DATA
|
22
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Item 7.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
23
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Item 7A.
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QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
31
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Item 8.
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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
31
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Item 9.
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CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
31
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Item 9A.
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CONTROLS AND PROCEDURES
|
31
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PART III
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|||
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Item 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
33
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Item 11.
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EXECUTIVE COMPENSATION
|
33
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|
Item 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
33
|
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Item 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
33
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Item 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
33
|
|
|
|
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PART IV
|
|
|
|
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Item 15.
|
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
|
34
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|
|
SIGNATURES | 36 |
· |
Future payments that may be made by South32 under the terms of the Earn-In Option Agreement
;
|
· |
Prospects of entering the development or production stage with respect to any of our projects;
|
· |
Our planned activities at the Sierra Mojada Project in 2019 and beyond, including with respect to exploration and drilling, metallurgical studies, surveys and other testing activities, and expenditures;
|
· |
Whether any part of the Sierra Mojada Project will ever be confirmed or converted into SEC Industry Guide 7 – compliant "reserves";
|
· |
The Sierra Mojada Project will require additional power supplies if a mining operation is determined to be feasible;
|
· |
Our ability to obtain and hold additional concessions in the Sierra Mojada Project area;
|
· |
Whether we will be required to obtain additional surface rights if a mining operation is determined to be feasible;
|
· |
The impact of the fine bubble flotation test work on the recovery of minerals and initial rough concentrate grade;
|
· |
The possible advantages of zinc mineralization at the Sierra Mojada Property;
|
· |
The impact of recent accounting pronouncements on our financial position, results of operations or cash flows and disclosures;
|
· |
The impact of changes to current state or federal laws and regulations on estimated capital expenditures, the economics of a particular project and/or our activities;
|
· |
Our ability to raise additional capital and/or pursue additional strategic options, and the potential impact on our business, financial condition and results of operations of doing so or not;
|
· |
The impact of changing foreign currency exchange rates on our financial condition;
|
· |
Our expectations regarding future recovery of value-added taxes ("VAT") paid in Mexico; and
|
· |
The merits of any claims in connection with, and the expected timing of any, ongoing legal proceedings.
|
· |
The continued funding by South32 of amounts required under the Earn-In Option Agreement;
|
· |
Our ability to obtain additional financial resources on acceptable terms to (i) conduct our exploration activities and (ii) maintain our general and administrative expenditures at acceptable levels;
|
· |
Results of future exploration at our Sierra Mojada Project;
|
· |
Worldwide economic and political events affecting (i) the market prices for silver, zinc, lead, copper and other minerals that may be found on our exploration properties (ii) interest rates and (iii) currency exchange rates;
|
· |
The amount and nature of future capital and exploration expenditures;
|
· |
Volatility in our stock price;
|
· |
Our inability to obtain required permits;
|
· |
Competitive factors, including exploration-related competition;
|
· |
Timing of receipt and maintenance of government approvals;
|
· |
Unanticipated title issues;
|
· |
Changes in tax laws;
|
· |
Changes in regulatory frameworks or regulations affecting our activities;
|
· |
Our ability to retain key management, consultants and experts necessary to successfully operate and grow our business; and
|
· |
Political and economic instability in Mexico and other countries in which we conduct our business, and future potential actions of the governments in such countries with respect to nationalization of natural resources or other changes in mining or taxation policies.
|
Concession
|
A grant of a tract of land made by a government or other controlling authority in return for stipulated services or a promise that the land will be used for a specific purpose.
|
|
Exploration Stage
|
A prospect that is not yet in either the development or production stage.
|
|
Feasibility Study
|
An engineering study designed to define the technical, economic, and legal viability of a mining project with a high degree of reliability.
|
|
Formation
|
A distinct layer of sedimentary rock of similar composition.
|
|
Mineralized Material
|
Mineral bearing material such as zinc, silver, gold, lead or copper that has been physically delineated by one or more of a number of methods, including drilling, underground work, surface trenching and other types of sampling. This material has been found to contain a sufficient amount of mineralization of an average grade of metal or metals to have economic potential that warrants further exploration evaluation. While this material is not currently or may never be classified as reserves, it is reported as mineralized material only if the potential exists for reclassification into the reserves category. This material cannot be classified in the reserves category until final technical, economic and legal factors have been determined. Under the U.S. Securities and Exchange Commission's standards, a mineral deposit does not qualify as a reserve unless the recoveries from the deposit are expected to be sufficient to recover total cash and non-cash costs for the mine and related facilities and make a profit.
|
|
Mining
|
The process of extraction and beneficiation of mineral reserves to produce a marketable metal or mineral product. Exploration continues during the mining process and, in many cases, mineral reserves are expanded during the life of the mine operations as the exploration potential of the deposit is realized.
|
|
Ore, Ore Reserve, or Mineable Ore Body
|
The part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination.
|
|
Reserves
|
Estimated remaining quantities of mineral deposit and related substances anticipated to be recoverable from known accumulations, from a given date forward, based on:
(a) analysis of drilling, geological, geophysical and engineering data;
(b) the use of established technology;
(c) specified economic conditions, which are generally accepted as being reasonable, and which are disclosed; and
(d) whether they are permitted and financed for development.
|
|
Resources
|
Those quantities of mineral deposit estimated to exist originally in naturally occurring accumulations.
Resources are, therefore, those quantities estimated on a particular date to be remaining in known accumulations plus those quantities already produced from known accumulations plus those quantities in accumulations yet to be discovered. Resources are divided into:
(a) discovered resources, which are limited to known accumulations; and
(b) undiscovered resources.
|
|
Tonne
|
A metric ton which is equivalent to 2,204.6 pounds.
|
Name and Residence
|
Age
|
Position
|
|||
Brian Edgar
Vancouver, BC
|
69
|
Chairman
|
|||
Timothy Barry
Vancouver, BC
|
43
|
President, Chief Executive Officer and Director
|
|||
Sean Fallis
Vancouver, BC
|
39
|
Chief Financial Officer
|
Silver
(per troy ounce)
|
||||||||
Year
|
High
|
Low
|
||||||
2011
|
$
|
48.70
|
$
|
26.16
|
||||
2012
|
$
|
37.23
|
$
|
26.67
|
||||
2013
|
$
|
32.23
|
$
|
18.61
|
||||
2014
|
$
|
22.05
|
$
|
15.28
|
||||
2015
|
$
|
18.23
|
$
|
13.71
|
||||
2016
|
$
|
20.71
|
$
|
13.58
|
||||
2017
|
$
|
18.56
|
$
|
15.22
|
||||
2018
|
$
|
17.52
|
$
|
13.97
|
Zinc
(per tonne)
|
||||||||
Year
|
High
|
Low
|
||||||
2011
|
$
|
2,473
|
$
|
1,871
|
||||
2012
|
$
|
2,040
|
$
|
1,816
|
||||
2013
|
$
|
2,129
|
$
|
1,831
|
||||
2014
|
$
|
2,327
|
$
|
2,008
|
||||
2015
|
$
|
2,281
|
$
|
1,528
|
||||
2016
|
$
|
2,566
|
$
|
1,520
|
||||
2017
|
$
|
3,264
|
$
|
2,573
|
||||
2018
|
$
|
3,533
|
$
|
2,434
|
· |
geological and engineering estimates that have inherent uncertainties;
|
· |
the assumed effects of regulation by governmental agencies;
|
· |
the judgment of the engineers preparing the estimate;
|
· |
estimates of future metals prices and operating costs;
|
· |
the quality and quantity of available data;
|
· |
the interpretation of that data; and
|
· |
the accuracy of various mandated economic assumptions, all of which may vary considerably from actual results.
|
· |
we are subject to competition from a large number of companies, many of which are significantly larger than we are, in the acquisition, exploration, and development of mining properties;
|
· |
we might not be able raise enough money to pay the fees and taxes and perform the labor necessary to maintain our concessions in good status;
|
· |
exploration for minerals is highly speculative, involves substantial risks and is frequently unproductive, even when conducted on properties known to contain significant quantities of mineralization, and our exploration projects may not result in the discovery of commercially mineable deposits of ore;
|
· |
the probability of an individual prospect ever having reserves that meet the requirements for reporting under SEC Industry Guide 7 is remote, and any funds spent on exploration may be lost;
|
· |
our operations are subject to a variety of existing laws and regulations relating to exploration and development, permitting procedures, safety precautions, property reclamation, employee health and safety, air quality standards, pollution and other environmental protection controls, and we may not be able to comply with these regulations and controls; and
|
· |
a large number of factors beyond our control, including fluctuations in metal prices, inflation, and other economic conditions, will affect the economic feasibility of mining.
|
· |
global or regional consumption patterns;
|
· |
supply of, and demand for, silver, zinc, lead, copper and other metals;
|
· |
speculative activities and producer hedging activities;
|
· |
expectations for inflation;
|
· |
political and economic conditions; and
|
· |
supply of, and demand for, consumables required for production.
|
· |
volatility in metal prices;
|
· |
political developments in the foreign countries in which our properties
are located; and
|
· |
news reports relating to trends in our industry or general economic conditions.
|
OTCQB
(SVBL)
|
Toronto
Stock Exchange
(SVB)
|
|||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||
($)
|
(CDN$)
|
|||||||||||||||
2019
|
||||||||||||||||
First Quarter (ending January 15, 2019)
|
$
|
0.13
|
0.09
|
0.17
|
0.12
|
|||||||||||
2018
|
||||||||||||||||
Fourth Quarter ended October 31, 2018
|
$
|
0.13
|
0.09
|
0.16
|
0.11
|
|||||||||||
Third Quarter ended July 31, 2018
|
0.16
|
0.11
|
0.21
|
0.14
|
||||||||||||
Second Quarter ended April 30, 2018
|
0.20
|
0.10
|
0.27
|
0.18
|
||||||||||||
First Quarter ended January 31, 2018
|
0.23
|
0.08
|
0.29
|
0.10
|
||||||||||||
2017
|
||||||||||||||||
Fourth Quarter ended October 31, 2017
|
$
|
0.13
|
0.06
|
0.16
|
0.09
|
|||||||||||
Third Quarter ended July 31, 2017
|
0.10
|
0.06
|
0.13
|
0.08
|
||||||||||||
Second Quarter ended April 30, 2017
|
0.14
|
0.08
|
0.19
|
0.10
|
||||||||||||
First Quarter ended January 31, 2017
|
0.16
|
0.09
|
0.21
|
0.12
|
||||||||||||
Plan Category
|
Number of securities to be issued upon exercise of outstanding options, warrants
and rights
|
Weighted average exercise
price of outstanding
options, warrants and rights
|
Number of securities
remaining available for
future issuance
|
|||
Equity compensation
plans approved by
security holders
|
18,950,000
(1)
|
$0.11
|
3,860,155
(2)
|
|||
Total
|
18,950,000
|
$0.11
|
3,860,155
|
(1) |
Includes options to acquire 18,950,000 shares of common stock under the 2010 Plan.
|
(2) |
Includes 3,860,155 shares of common stock available for issuance under the 2010 Plan.
|
· |
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
|
· |
provide reasonable assurance that transactions are recorded as necessary to permit the preparation of financial statements in accordance with U.S. generally accepted accounting principles and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
|
· |
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.
|
Incorporated by Reference
|
||||||||||
Exhibit Number
|
Exhibit Description
|
Form
|
Date of Report
|
Exhibit
|
Filed Herewith
|
|||||
|
||||||||||
|
||||||||||
10.14 | 8-K | 6/7/2018 | 10.1 | |||||||
10.15 | 8-K | 7/27/2018 | 10.1 | |||||||
10.16 | 8-K | 8/21/2018 | 10.1 | |||||||
10.17+ | 8-K | 8/29/2018 | 10.1 | |||||||
10.18+ | 8-K | 8/29/2018 | 10.2 | |||||||
10.19+ | 8-K | 8/29/2018 | 10.3 | |||||||
X
|
||||||||||
X
|
||||||||||
X
|
||||||||||
X
|
||||||||||
X
|
||||||||||
X
|
||||||||||
X
|
||||||||||
101.INS*
|
XBRL Instance Document
|
X
|
||||||||
101.SCH*
|
XBRL Schema Document
|
X
|
||||||||
101.CAL*
|
XBRL Calculation Linkbase Document
|
X
|
||||||||
101.DEF*
|
XBRL Definition Linkbase Document
|
X
|
||||||||
101.LAB*
|
XBRL Labels Linkbase Document
|
X
|
||||||||
101.PRE*
|
XBRL Presentation Linkbase Document
|
X
|
||||||||
99.1
|
Sierra Mojada location map (1)
|
X
|
||||||||
SILVER BULL RESOURCES, INC.
|
|||
Date: January 16, 2019
|
By:
|
/s/ Timothy Barry
|
|
Timothy Barry,
|
|||
President and Chief Executive Officer
|
|||
(Principal Executive Officer)
|
|||
Date: January 16, 2019
|
By:
|
/s/ Sean Fallis
|
|
Sean Fallis,
|
|||
Chief Financial Officer
|
|||
(Principal Financial Officer and Principal Accounting Officer)
|
Date: January 16, 2019
|
By:
|
/s/ Timothy Barry
|
|
Timothy Barry,
|
|||
President and Chief Executive Officer and Director
|
|||
Date: January 16, 2019
|
By:
|
/s/ Brian Edgar
|
|
Brian Edgar,
|
|||
Director
|
|||
Date: January 16, 2019
|
By:
|
/s/ Daniel Kunz
|
|
Daniel Kunz,
|
|||
Director
|
|||
Date: January 16, 2019
|
By:
|
/s/ John McClintock
|
|
John McClintock,
|
|||
Director
|
PAGE NO.
|
||
Report of Independent Registered Public Accounting Firm
|
F-2
|
|
Consolidated Financial Statements:
|
||
Consolidated Balance Sheets
|
F-4
|
|
Consolidated Statements of Operations and Comprehensive Loss
|
F-5
|
|
Consolidated Statements of Cash Flows
|
F-6 – F-7
|
|
Consolidated Statement of Changes in Stockholders' Equity
|
F-8
|
|
Notes to Consolidated Financial Statements
|
F-9 – F-24
|
Years Ended October 31,
|
||||||||
2018
|
2017
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net loss
|
$
|
(3,519,666
|
)
|
$
|
(2,053,544
|
)
|
||
Adjustments to reconcile net loss to net cash used by operating activities:
|
||||||||
Depreciation, asset and property concessions' impairment
|
27,105
|
38,829
|
||||||
Provision for (recovery of) uncollectible value-added taxes
|
37,457
|
(69,981
|
)
|
|||||
Foreign currency transaction gain
|
(4,132
|
)
|
(25,448
|
)
|
||||
Change in fair value of warrant derivative liability (Note 10)
|
510,968
|
100,020
|
||||||
Change in fair value of stock option liability (Note 9)
|
(8,189
|
)
|
(6,921
|
)
|
||||
Stock options issued for compensation (Note 9)
|
245,629
|
152,349
|
||||||
Warrant issuance costs (Note 8)
|
—
|
18,819
|
||||||
Gain on liquidation of subsidiary (Note 1)
|
—
|
(129,781
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Value-added tax receivable
|
(64,635
|
)
|
(26,983
|
)
|
||||
Income tax receivables
|
(170
|
)
|
—
|
|||||
Other receivables
|
(6,865
|
)
|
(614
|
)
|
||||
Prepaid expenses and deposits
|
(121,499
|
)
|
(3,394
|
)
|
||||
Accounts payable
|
121,484
|
(37,753
|
)
|
|||||
Accrued liabilities and expenses
|
135,216
|
25,831
|
||||||
Income tax payable
|
(80
|
)
|
(5,450
|
)
|
||||
Net cash used in operating activities
|
(2,647,377
|
)
|
(2,024,021
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Acquisition of property concessions
|
(15,541
|
)
|
—
|
|||||
Purchase of equipment
|
(19,836
|
)
|
—
|
|||||
Net cash used in investing activities
|
(35,377
|
)
|
—
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Property concessions funding (Note 3)
|
922,783
|
—
|
||||||
Proceeds from exercise of warrants, net of costs (Note 8)
|
633,908
|
—
|
||||||
Proceeds from issuance of common stock, net of offering costs (Note 8)
|
3,469,657
|
1,230,504
|
||||||
Net cash provided by financing activities
|
5,026,348
|
1,230,504
|
||||||
Effect of exchange rates on cash and cash equivalents
|
469
|
7,965
|
||||||
Net increase (decrease) in cash and cash equivalents
|
2,344,063
|
(785,552
|
)
|
|||||
Cash and cash equivalents beginning of year
|
681,776
|
1,467,328
|
||||||
Cash and cash equivalents end of year
|
$
|
3,025,839
|
$
|
681,776
|
Common Stock
|
Additional Paid-in | Accumulated | Other Comprehensive | |||||||||||||||||||||
Number of Shares
|
Amount
|
Capital
|
Deficit
|
Income
|
Total
|
|||||||||||||||||||
Balance, November 1, 2016
|
177,894,967
|
$
|
1,778,949
|
$
|
126,820,897
|
$
|
(120,281,820
|
)
|
$
|
219,308
|
$
|
8,537,334
|
||||||||||||
Issuance of common stock as follows: | ||||||||||||||||||||||||
- for cash at a price of Canadian dollar ("$CDN") $0.08 per share with attached warrants, less offering costs of $165,227 (Note 8)
|
21,365,000
|
213,650
|
812,676
|
—
|
—
|
1,026,326
|
||||||||||||||||||
Stock option activity as follows: | ||||||||||||||||||||||||
- Stock-based compensation for options issued to directors, officers, employees and consultants
|
—
|
—
|
152,349
|
—
|
—
|
152,349
|
||||||||||||||||||
Reclassification of warrants to derivative liability (Note 10)
|
—
|
—
|
(94,143
|
)
|
—
|
—
|
(94,143
|
)
|
||||||||||||||||
Reclassification of consultant stock options to liability (Note 9)
|
—
|
—
|
(12,115
|
)
|
—
|
—
|
(12,115
|
)
|
||||||||||||||||
Other comprehensive loss – Realized foreign currency translation gain on liquidation of subsidiary
|
—
|
—
|
—
|
—
|
(129,427
|
)
|
(129,427
|
)
|
||||||||||||||||
Other comprehensive gain – Foreign currency translation adjustments
|
—
|
—
|
—
|
—
|
2,367
|
2,367
|
||||||||||||||||||
Net loss for the year ended October 31, 2017
|
—
|
—
|
—
|
(2,053,544
|
)
|
—
|
(2,053,544
|
)
|
||||||||||||||||
Balance, October 31, 2017
|
199,259,967
|
$
|
1,992,599
|
$
|
127,679,664
|
$
|
(122,335,364
|
)
|
$
|
92,248
|
$
|
7,429,147
|
||||||||||||
Issuance of common stock as follows: | ||||||||||||||||||||||||
- for cash at a price of $0.13 per share with attached warrants, less offering costs of $343,816 (Note 8)
|
29,141,872
|
291,419
|
3,153,208
|
—
|
—
|
3,444,627
|
||||||||||||||||||
- exercise of warrants at a price of $CDN 0.13 per share, less costs of $795 (Note 8)
|
5,565,000
|
55,650
|
508,689
|
—
|
—
|
564,339
|
||||||||||||||||||
- exercise of agent warrants at a price of $CDN 0.10 per share, less costs of $333 (Note 8)
|
901,375
|
9,014
|
60,556
|
—
|
—
|
69,570
|
||||||||||||||||||
Earn-In Option Agreement (Note 3)
|
—
|
—
|
922,783
|
—
|
—
|
922,783
|
||||||||||||||||||
Stock-based compensation for options issued to directors, officers, employees and consultants
|
—
|
—
|
245,629
|
—
|
—
|
245,629
|
||||||||||||||||||
Fair value of warrants issued to agents in connection with the $0.13 per share private placement (Notes 8 and 10)
|
—
|
—
|
26,165
|
—
|
—
|
26,165
|
||||||||||||||||||
Reclassification of consultants' stock options to liability (Note 9)
|
—
|
—
|
(28,111
|
)
|
—
|
—
|
(28,111
|
)
|
||||||||||||||||
Reclassification to additional paid-in capital upon exercise of warrants at price of $CDN 0.13 (Note 10)
|
—
|
—
|
385,738
|
—
|
—
|
385,738
|
||||||||||||||||||
Reclassification to additional paid-in capital upon exercise of warrants at price of $CDN 0.10 (Note 10)
|
—
|
—
|
61,447
|
—
|
—
|
61,447
|
||||||||||||||||||
Net loss for the year ended October 31, 2018
|
—
|
—
|
—
|
(3,519,666
|
)
|
—
|
(3,519,666
|
)
|
||||||||||||||||
Balance, October 31, 2018
|
234,868,214
|
$
|
2,348,682
|
$
|
133,015,768
|
$
|
(125,855,030
|
)
|
$
|
92,248
|
$
|
9,601,668
|
· |
Mining equipment – five to 10 years
|
· |
Vehicles – four years
|
· |
Building and structures – 40 years
|
· |
Computer equipment and software – three years
|
· |
Well equipment – 10 to 40 years
|
· |
Office equipment – three to 10 years
|
Assets:
|
Mexico
|
|||
Cash and cash equivalents
|
$
|
33,000
|
||
Value-added tax receivable, net
|
175,000
|
|||
Other receivables
|
1,000
|
|||
Prepaid expenses and deposits
|
11,000
|
|||
Office and mining equipment, net
|
201,000
|
|||
Property concessions
|
5,020,000
|
|||
Total assets
|
$
|
5,441,000
|
Liabilities:
|
||||
Accounts payable
|
4,000
|
|||
Accrued liabilities and expenses
|
319,000
|
|||
Payable to Silver Bull Resources, Inc. to be converted to equity upon exercise of the Option
|
3,640,000
|
|||
Total liabilities
|
$
|
3,963,000
|
||
Net advances and investment in the Company's Mexican subsidiaries
|
$
|
1,478,000
|
Allowance for uncollectible VAT taxes – October 31, 2016
|
$
|
88,283
|
||
Recovery of uncollectible VAT Taxes
|
(17,030
|
)
|
||
Write-off VAT receivable
|
(2,312
|
)
|
||
Foreign currency translation adjustment
|
(1,212
|
)
|
||
Allowance for uncollectible VAT taxes – October 31, 2017
|
67,729
|
|||
Provision for uncollectible VAT Taxes | 37,457 | |||
Write-off VAT receivable
|
(3,440 | ) | ||
Foreign currency translation adjustment
|
(3,332
|
)
|
||
Allowance for uncollectible VAT taxes – October 31, 2018
|
$
|
98,414
|
October 31,
|
October 31,
|
|||||||
2018
|
2017
|
|||||||
Mining equipment
|
$
|
358,513
|
$
|
358,513
|
||||
Vehicles
|
73,287
|
53,451
|
||||||
Buildings and structures
|
185,724
|
185,724
|
||||||
Computer equipment and software
|
74,236
|
74,236
|
||||||
Well equipment
|
39,637
|
39,637
|
||||||
Office equipment
|
47,597
|
47,597
|
||||||
778,994
|
759,158
|
|||||||
Less: Accumulated depreciation
|
(577,508
|
)
|
(550,403
|
)
|
||||
Office and mining equipment, net
|
$
|
201,486
|
$
|
208,755
|
Property Concessions – October 31, 2017
|
$
|
5,004,386
|
||
Acquisitions
|
15,541
|
|||
Property Concessions – October 31, 2018
|
$
|
5,019,927
|
Goodwill – October 31, 2018 and 2017
|
|
$
|
2,058,031
|
Year Ended
October 31,
|
|||||
Options
|
2018
|
2017
|
|||
Expected volatility
|
40% – 87%
|
78% – 87%
|
|||
Risk-free interest rate
|
1.94% – 2.60%
|
1.35% – 1.56%
|
|||
Dividend yield
|
—
|
—
|
|||
Expected term (in years)
|
2.50 – 5.00
|
2.50 – 3.50
|
Options
|
Shares
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Life (Years)
|
Aggregate Intrinsic Value
|
||||||||||||
Outstanding at October 31, 2016
|
11,517,858
|
0.28
|
2.66
|
$
|
227,891
|
|||||||||||
Granted
|
4,075,000
|
0.09
|
||||||||||||||
Expired
|
(2,770,000
|
)
|
0.52
|
|||||||||||||
Cancelled
|
(28,572
|
)
|
2.18
|
|||||||||||||
Outstanding at October 31, 2017
|
12,794,286
|
0.16
|
2.98
|
$
|
110,622
|
|||||||||||
Granted
|
8,175,000
|
0.10
|
||||||||||||||
Expired
|
(2,019,286
|
)
|
0.40
|
|||||||||||||
Outstanding at October 31, 2018
|
18,950,000
|
$
|
0.11
|
3.48
|
$
|
429,158
|
||||||||||
Exercisable at October 31, 2018
|
12,375,000
|
$
|
0.12
|
3.24
|
$
|
323,930
|
Options Outstanding
|
Options Exercisable | |||||||||||||||||||||
Exercise Price
|
Number Outstanding
|
Weighted Average Remaining Contractual Life (Years)
|
Weighted Average Exercise Price
|
Number Exercisable
|
Weighted Average Exercise Price
|
|||||||||||||||||
$
|
0.06
|
4,075,000
|
2.32
|
$
|
0.06
|
4,075,000
|
$
|
0.06
|
||||||||||||||
0.10
|
11,900,000
|
4.39
|
0.10
|
5,325,000
|
0.10
|
|||||||||||||||||
0.16
|
350,000
|
4.30
|
0.16
|
350,000
|
0.16
|
|||||||||||||||||
0.19 – 0.26
|
2,625,000
|
1.06
|
0.25
|
2,625,000
|
0.25
|
|||||||||||||||||
$
|
0.06 – 0.26
|
18,950,000
|
3.48
|
$
|
0.11
|
12,375,000
|
$
|
0.12
|
Stock option liability at October 31, 2016
|
$
|
—
|
||
Reclassification from additional paid-in capital
|
12,115
|
|||
Change in fair value of stock option liability
|
(6,921
|
)
|
||
Stock option liability at October 31, 2017
|
$
|
5,194
|
||
Reclassification from additional paid-in capital
|
28,111
|
|||
Change in fair value of stock option liability
|
(8,189
|
)
|
||
Stock option liability at October 31, 2018
|
$
|
25,116
|
Warrants
|
Shares
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Life (Years)
|
Aggregate Intrinsic Value
|
||||||||||||
Outstanding at October 31, 2016
|
4,540,400
|
$
|
0.12
|
2.67
|
$
|
—
|
||||||||||
Issued in the $CDN 0.08 Unit private placement (Note 8)
|
21,365,000
|
$
|
0.10
|
|||||||||||||
Agent's Warrants (Note 8)
|
1,259,300
|
0.08
|
||||||||||||||
Outstanding and exercisable at October 31, 2017
|
27,164,700
|
$
|
0.10
|
1.70
|
$
|
9,769
|
||||||||||
Issued in the $0.13 Unit private placement (Note 8)
|
14,570,931
|
$
|
0.16
|
|||||||||||||
Agent's Warrants (Note 8)
|
1,231,374
|
$
|
0.14
|
|||||||||||||
Expired
|
(200,400
|
)
|
$
|
0.15
|
||||||||||||
Exercised
|
(6,466,375
|
)
|
$
|
0.10
|
||||||||||||
Outstanding and exercisable at October 31, 2018
|
36,300,230
|
$
|
0.13
|
1.16
|
$
|
254,068
|
Warrants Outstanding and Exercisable
|
||||||||||||||
Exercise Price
|
Number
Outstanding
|
Weighted Average Remaining Contractual Life (Years)
|
Weighted Average Exercise Price
|
|||||||||||
$
|
0.08
|
357,925
|
0.69
|
$
|
0.08
|
|||||||||
0.10
|
15,800,000
|
0.70
|
0.10
|
|||||||||||
0.12
|
4,340,000
|
0.72
|
0.12
|
|||||||||||
0.14
|
1,231,374
|
1.75
|
0.14
|
|||||||||||
0.16
|
14,570,931
|
1.75
|
0.16
|
|||||||||||
$
|
0.08 – 0.16
|
36,300,230
|
1.16
|
$
|
0.13
|
Warrant derivative liability at October 31, 2016
|
$
|
—
|
||
Reclassification from additional paid-in capital
|
94,143
|
|||
Warrants issued in $CDN 0.08 Unit private placement
|
139,423
|
|||
Agent's warrants issued in $CDN 0.08 Unit private placement
|
12,967
|
|||
Change in fair value of warrant derivative liability
|
100,020
|
|||
Foreign currency translation adjustment
|
(4,836
|
)
|
||
Warrant derivative liability at October 31, 2017
|
$
|
341,717
|
||
Change in fair value of warrant derivative liability
|
510,968
|
|||
Reclassification to additional paid-in capital upon exercise of warrants
|
(447,185
|
)
|
||
Warrant derivative liability at October 31, 2018
|
$
|
405,500
|
For the year ended
|
||||||||
October 31,
|
||||||||
2018
|
2017
|
|||||||
United States
|
$
|
(2,228,000
|
)
|
$
|
(1,339,000
|
)
|
||
Foreign
|
(1,288,000
|
)
|
(713,000
|
)
|
||||
Loss before income taxes
|
$
|
(3,516,000
|
)
|
$
|
(2,052,000
|
)
|
For the year ended
|
||||||||
October 31,
|
||||||||
2018
|
2017
|
|||||||
Current tax expense
|
$
|
3,718
|
$
|
1,867
|
||||
Deferred tax expense
|
—
|
—
|
||||||
$
|
3,718
|
$
|
1,867
|
For the year ended
|
||||||||
October 31,
|
||||||||
|
2018
|
2017
|
||||||
|
||||||||
Income tax benefit calculated at U.S. federal income tax rate
|
$
|
(808,000
|
)
|
$
|
(718,000
|
)
|
||
|
||||||||
Differences arising from:
|
||||||||
Other permanent differences
|
207,000
|
130,000
|
||||||
Differences due to foreign income tax rates
|
(81,000
|
)
|
43,000
|
|||||
Adjustment to prior year taxes
|
68,000
|
(77,000
|
)
|
|||||
Inflation adjustment foreign net operating loss
|
(375,000
|
)
|
(422,000
|
)
|
||||
Foreign currency fluctuations
|
417,000
|
115,000
|
||||||
(Decrease) increase in valuation allowance
|
(4,810,000
|
)
|
353,000
|
|||||
Re-measurement of deferred tax assets at 21%
|
4,767,000
|
—
|
||||||
Net operation loss carry forwards expiration - United States
|
99,000
|
—
|
||||||
Net operation loss carry forwards expiration - Mexico
|
520,000
|
565,000
|
||||||
Other
|
—
|
13,000
|
||||||
Net income tax provision
|
$
|
4,000
|
$
|
2,000
|
October 31,
|
||||||||
|
2018
|
2017
|
||||||
Deferred tax assets:
|
||||||||
Net operating loss carry forwards – U.S.
|
$
|
7,232,000
|
$
|
11,766,000
|
||||
Net capital loss carry forwards – U.S.
|
62,000
|
103,000
|
||||||
Net operating loss carry forwards – Mexico
|
7,736,000
|
8,111,000
|
||||||
Stock-based compensation – U.S.
|
7,000
|
11,000
|
||||||
Exploration costs
|
295,000
|
122,000
|
||||||
Other – United States
|
26,000
|
36,000
|
||||||
Other – Mexico
|
19,000
|
38,000
|
||||||
Total net deferred tax assets
|
15,377,000
|
20,187,000
|
||||||
Less: valuation allowance
|
(15,377,000
|
)
|
(20,187,000
|
)
|
||||
Net deferred tax asset
|
$
|
—
|
$
|
—
|
|
United States:
|
2014 and all following years
|
|
|
|
Mexico:
|
2013 and all following years
|
|
|
|
Canada:
|
2014 and all following years
|
|
Level 1
|
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
|
Level 2
|
Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
|
Level 3
|
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
|
October 31, 2018
|
||||||||||||
Liability
|
Level 1
|
Level 2
|
Level 3
|
|||||||||
Stock option liability
|
$
|
—
|
$
|
—
|
$
|
25,116
|
||||||
Warrant derivative liability
|
$
|
—
|
$
|
—
|
$
|
405,500
|
For the Year Ended
|
||||||||
October 31,
|
||||||||
2018
|
2017
|
|||||||
Net loss
|
||||||||
Mexico
|
$
|
(1,292,000
|
)
|
$
|
(928,000
|
)
|
||
Canada
|
(2,228,000
|
)
|
(1,339,000
|
)
|
||||
Gabon
|
-
|
213,000
|
||||||
Net Loss
|
$
|
(3,520,000
|
)
|
$
|
(2,054,000
|
)
|
|
Canada
|
Mexico
|
Total
|
|||||||||
Cash and cash equivalents
|
$
|
2,993,000
|
$
|
33,000
|
$
|
3,026,000
|
||||||
Value-added tax receivable, net
|
-
|
175,000
|
175,000
|
|||||||||
Other receivables
|
11,000
|
1,000
|
12,000
|
|||||||||
Prepaid expenses and deposits
|
226,000
|
11,000
|
237,000
|
|||||||||
Office and mining equipment, net
|
-
|
202,000
|
202,000
|
|||||||||
Property concessions
|
-
|
5,020,000
|
5,020,000
|
|||||||||
Goodwill
|
-
|
2,058,000
|
2,058,000
|
|||||||||
|
$
|
3,230,000
|
$
|
7,500,000
|
$
|
10,730,000
|
|
Canada
|
Mexico
|
Total
|
|
|||||||||
Cash and cash equivalents
|
$
|
657,000
|
$
|
25,000
|
$
|
682,000
|
|||||||
Value-added tax receivable, net
|
-
|
157,000
|
157,000
|
||||||||||
Other receivables
|
4,000
|
1,000
|
5,000
|
||||||||||
Prepaid expenses and deposits
|
102,000
|
15,000
|
117,000
|
||||||||||
Office and mining equipment, net
|
-
|
209,000
|
209,000
|
||||||||||
Property concessions
|
-
|
5,004,000
|
5,004,000
|
||||||||||
Goodwill
|
-
|
2,058,000
|
2,058,000
|
||||||||||
|
$
|
763,000
|
$
|
7,469,000
|
$
|
8,232,000
|
For the Year Ended
October 31,
|
||||||||
Exploration and property holding costs for the year
|
2018
|
2017
|
||||||
Mexico Sierra Mojada
|
$
|
(1,241,000
|
)
|
$
|
(944,000
|
)
|
||
Gabon Mitzic
|
-
|
31,000
|
||||||
|
$
|
(1,241,000
|
)
|
$
|
(913,000
|
)
|
1 Year Silver Bull Resources (QB) Chart |
1 Month Silver Bull Resources (QB) Chart |
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