Note 12 - Sale of Subsidiary

12 Months Ended

Jan. 31, 2018

Statement Line Items [Line Items]

Disclosure of subsidiaries [text block]

11. SALE OF SUBSIDIARY

During the

year ended

January 31, 2017,

the Company completed a sale of its

100%

interest in Dorato Peru S.A.C. (“Dorato”) for

$38,668

(US

$30,000

). The Company paid Peruvian tax of

$11,570.

The Company anticipates this amount will be refunded, accordingly the amount is included in accounts receivable as at DJanuary

31,

2018.

As a result of the sale, the Company recognized a gain on sale of subsidiary of

$277,276

comprised of the following:

i) $15,916 relating to a foreign exchange gain on accounts payable held in US dollars.

ii) gain on sale of subsidiary $261,360, arising from the derecognition of net liabilities associated with Dorato of $222,692, plus proceeds of $38,668.

As the cash flows related to the operations of Dorato Peru S.A.C. are clearly distinguished, both operationally, geographically and for financial reporting purposes from the rest of the entity, the financial performance within Dorato for the comparative periods has been reclassified and presented separately as discontinued operations in the consolidated statements of comprehensive loss and cash flows.

The reported net income (loss) from discontinued operations is comprised of the following:

For the year ended January 31	201 8		2017		2016
Exploration and evaluation costs	$	-	$	-	$	(12,263	)
Foreign exchange gain (loss)		-		15,916		133,041
Gain on sale of subsidiary		-		261,360		-
Net income for the year from discontinued operations	$	-	$	277,276	$	120,778

There were

no

income tax effects related to discontinued operations for any of the years ended

January 31, 2018,

2017

or

2016.

The reported cash flows from discontinued operations are as follows:

For the year ended January 31	201 8		2017			2016
Net income (loss) for the year from discontinued operations, net of tax	$	-	$	277,276		$	120,778
Foreign exchange gain (loss)		-		(15,916	)		(133,041	)
Gain on sale of subsidiary		-		(261,360	)		-
Accounts payable and accrued liabilities		-		-			50,870
Operating cash flows from discontinued operations	$	-	$	-		$	38,607