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Restatement of Financial Statements
 12 Months Ended
Dec. 31, 2012
Restatement of Financial Statements [Text Block]
16.

Restatement
   
 

On March 28, 2013, the Company filed its restated December 31, 2011, consolidated financial statements to expense certain costs previously capitalized as construction in progress as described in Note 15 d). Subsequent to March 28, 2013, the Company further determined that its capitalization of certain additional expenditures was not fully in accordance with the U.S. GAAP. As a result, the Company further amended and restated its consolidated financial statements for the years ended December 31, 2012 and 2011, to reflect a cumulative adjustment to mineral property expenditures of $21,292,618 up to December 31, 2012 ($9,754,067 up to December 31, 2011). The details of these restatements are outlined in the tables below. These adjustments to mineral property expenditures were previously capitalized as construction in progress and property and equipment.

   
 

The following tables reflect the adjustment and restated amounts:

  Consolidated Balance Sheet   December 31, 2012  
      As Reported     Adjustment     As Restated  
      $      $      $   
                     
  ASSETS                  
  Property and Equipment   1,711,553     (1,119,952 )   591,601  
  Construction in Progress   20,172,666     (20,172,666 )   –  
  Total Assets   32,846,112     (21,292,618 )   11,553,494  
  STOCKHOLDER’S EQUITY                  
  Deficit Accumulated During the Exploration Stage   (115,998,598 )   (21,292,618 )   (137,291,216 )
  Total Stockholders’ Equity   29,500,593     (21,292,618 )   8,207,975  
  Total Equity   29,622,961     (21,292,618 )   8,330,343  
  Total Liabilities and Stockholders’ Equity   32,846,112     (21,292,618 )   11,553,494  

  Consolidated Statement of Operations   Year Ended December 31, 2012  
      As Reported     Adjustment     As Restated  
      $      $      $   
                     
  Mineral property expenditures   8,328,468     14,472,908     22,801,376  
  Total Operating Expenses   14,916,836     14,472,908     29,389,744  
  Loss from continuing operations   (14,874,429 )   (14,472,908 )   (29,347,337 )
  Net Loss and comprehensive loss   (14,874,429 )   (14,472,908 )   (29,347,337 )
  Net loss Attributable to the Company   (14,501,543 )   (14,472,908 )   (28,974,449 )
  Net Loss Per Share – Basic and Diluted   (0.19 )   (0.19 )   (0.38 )

  Consolidated Statement of Operations   From Inception to December 31, 2012  
      As Reported     Adjustment     As Restated  
      $      $      $   
                     
  Mineral property expenditures   64,385,374     21,292,618     85,677,992  
  Total Operating Expenses   122,344,399     21,292,618     143,637,017  
  Loss from continuing operations   (120,183,462 )   (21,292,618 )   (141,476,080 )
  Net Loss and comprehensive loss   (119,232,485 )   (21,292,618 )   (140,525,103 )
  Net loss Attributable to the Company   (115,998,598 )   (21,292,618 )   (137,291,216 )

 

  Consolidated Statement of Cash Flows   Year Ended December 31, 2012  
      As Reported     Adjustment     As Restated  
      $      $      $   
                     
  Operating Activities                  
                     
  Net Loss and comprehensive loss   (14,874,429 )   (14,472,908 )   (29,347,337 )
  Depreciation   397,109     (155,499 )   241,610  
  Increase in asset retirement obligation liability   –     682,380     682,380  
  Stock-based compensation   1,334,971     113,423     1,448,394  
  Accounts payable and accrued liabilities   (376,916 )   (169,399 )   (546,315 )
  Net Cash Used in Operating Activities   (13,666,266 )   (14,002,003 )   (27,668,269 )
  Investing Activities                  
  Investment in property and equipment   (14,416,401 )   14,002,003     (414,398 )
  Net Cash Used in Investing Activities   (14,441,693 )   14,002,003     (439,690 )

  Consolidated Statement of Cash Flows   From Inception to December 31, 2012  
      As Reported     Adjustment     As Restated  
      $      $      $   
                     
  Operating Activities                  
                     
  Net Loss and comprehensive loss   (119,232,485 )   (21,292,618 )   (140,525,103 )
  Depreciation   1,190,534     (155,499 )   1,035,035  
  Increase in asset retirement obligation liability   –     1,019,426     1,019,426  
  Stock-based compensation   27,999,497     218,542     28,218,039  
  Accounts payable and accrued liabilities   912,038     1,355,403     2,267,441  
  Net Cash Used in Operating Activities   (70,989,949 )   (18,854,746 )   (89,844,695 )
  Investing Activities                  
  Investment in property and equipment   (20,382,966 )   18,854,746     (1,528,220 )
  Net Cash Used in Investing Activities   (21,429,692 )   18,854,746     (2,574,946 )

 

  Consolidated Balance Sheet   December 31, 2011  
      As Reported     Adjustment     As Restated  
      $      $      $   
                     
  ASSETS                  
                     
  Property and Equipment   944,254     (474,320 )   469,934  
  Construction in Progress   6,345,390     (6,345,390 )   –  
  Total Assets   45,714,186     (6,819,710 )   38,894,476  
  STOCKHOLDER’S EQUITY                  
  Deficit Accumulated During the Exploration Stage   (101,497,057 )   (6,819,710 )   (108,316,767 )
  Total Stockholders’ Equity   42,456,856     (6,819,710 )   35,637,146  
  Total Equity   42,569,072     (6,819,710 )   35,749,362  
  Total Liabilities and Stockholders’ Equity   45,714,186     (6,819,710 )   38,894,476  

  Consolidated Statement of Operations   Year Ended December 31, 2011  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Mineral property expenditures   5,439,981     6,819,710     12,259,691  
  Total Operating Expenses   18,703,511     6,819,710     25,523,221  
  Loss from continuing operations   (18,624,346 )   (6,819,710 )   (25,444,056 )
  Net Loss and comprehensive loss   (18,624,346 )   (6,819,710 )   (25,444,056 )
  Net loss Attributable to the Company   (18,053,923 )   (6,819,710 )   (24,873,633 )
  Net Loss Per Share – Basic and Diluted   (0.24 )   (0.09 )   (0.33 )

  Consolidated Statement of Cash Flows   Year Ended December 31, 2011        
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Operating Activities                  
                     
  Net Loss and comprehensive loss   (18,624,346 )   (6,819,710 )   (25,444,056 )
  Increase in asset retirement obligation liability   –     337,046     337,046  
  Stock-based compensation   6,299,188     105,119     6,404,307  
  Accounts payable and accrued liabilities   447,987     1,524,802     1,972,789  
  Net Cash Used in Operating Activities   (11,699,586 )   (4,852,743 )   (16,552,329 )
  Investing Activities                  
  Investment in property and equipment   (4,984,167 )   4,852,743     (131,424 )
  Net Cash Used in Investing Activities   (5,007,553 )   4,852,743     (154,810 )

 

   
 

The Company has also restated the March 31, 2012, June 30, 2012 and September 30, 2012, interim consolidated financial statements to expense certain costs previously capitalized as construction in progress. The Company has determined that its capitalization of these expenditures was not fully in accordance with the U. S. GAAP. As a result, the Company amended and restated the interim consolidated balance sheet as at March 31, 2012, June 30, 2012 and September 30, 2012 to reflect $15,882,088, $22,701,685 and $26,640,070 of costs previously capitalized as construction in progress to exploration expenses. The interim consolidated statements of operations for the three month periods ended March 31, 2012, June 30, 2012 and September 30, 2012 were amended and restated to reflect $6,128,020, $6,819,598 and $3,938,385, respectively, of costs previously capitalized as construction in progress, to exploration expenses. The interim consolidated statement of operations for the six month period ended June 30, 2012 and the nine month periods ended September 30, 2012 were amended and restated to reflect $12,947,618 and $16,886,003, respectively, of costs previously capitalized as construction in progress, to exploration expenses. Corresponding changes were made to the interim consolidated statement of operations and the interim consolidated statements of cash flows for the periods from inception and the interim consolidated statements of cash flows for the three months ended March 31, 2012, the six months ended June 30, 2012, and the nine months ended September 30, 2012.


  Consolidated Balance Sheet   March 31, 2012  
      As Reported     Adjustment     As Restated  
      $      $      $   
                     
  ASSETS                  
                     
  Construction in Progress   15,882,088     (15,882,088 )   –  
  Total Assets   47,941,664     (15,882,088 )   32,059,576  
  STOCKHOLDER’S EQUITY                  
  Deficit Accumulated During the Exploration Stage   (100,209,594 )   (15,882,088 )   (116,091,682 )
  Total Stockholders’ Equity   43,887,855     (15,882,088 )   28,005,767  
  Total Equity   43,940,045     (15,882,088 )   28,057,957  
  Total Liabilities and Stockholders’ Equity   47,941,664     (15,882,088 )   32,059,576  

  Consolidated Statement of Operations   Three Months Ended March 31, 2012  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Mineral property expenditures   237,787     6,128,020     6,365,807  
  Total Operating Expenses   1,723,054     6,128,020     7,851,074  
  Loss from continuing operations   (1,706,920 )   (6,128,020 )   (7,834,940 )
  Net Loss and comprehensive loss   (1,706,920 )   (6,128,020 )   (7,834,940 )
  Net loss Attributable to the Company   (1,646,894 )   (6,128,020 )   (7,774,914 )
  Net Loss Per Share – Basic and Diluted   (0.02 )   (0.08 )   (0.10 )

 

  Consolidated Statement of Operations   From inception to March 31, 2012  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Mineral property expenditures   53,360,338     15,882,088     69,242,426  
  Total Operating Expenses   106,216,260     15,882,088     122,098,348  
  Loss from continuing operations   (104,081,596 )   (15,882,088 )   (119,963,684 )
  Net Loss and comprehensive loss   (103,130,619 )   (15,882,088 )   (119,012,707 )
  Net loss Attributable to the Company   (100,209,594 )   (15,882,088 )   (116,091,682 )

  Consolidated Statement of Cash Flows   Three Months Ended March 31, 2012  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Operating Activities                  
                     
  Net Loss and comprehensive loss   (1,706,920 )   (6,128,020 )   (7,834,940 )
  Increase in asset retirement obligation liability   –     311,352     311,352  
  Accounts payable and accrued liabilities   (348,082 )   964,769     616,687  
  Net Cash Used in Operating Activities   (2,035,366 )   (4,851,899 )   (6,887,265 )
  Investing Activities                  
  Investment in property and equipment   (5,093,328 )   4,851,899     (241,429 )
  Net Cash Used in Investing Activities   (5,093,328 )   4,851,899     (241,429 )

  Consolidated Statement of Cash Flows   From Inception to March 31, 2012  
      As Reported       Adjustment     As Restated  
      $     $      $   
                     
  Operating Activities                  
                     
  Net Loss and comprehensive loss   (103,130,619 )   (15,882,088 )   (119,012,707 )
  Increase in asset retirement obligation liability   –     648,398     648,398  
  Stock-based compensation   26,746,703     105,119     26,851,822  
  Accounts payable and accrued liabilities   940,872     2,489,572     3,430,444  
  Net Cash Used in Operating Activities   (56,424,692 )   (12,638,999 )   (69,063,691 )
  Investing Activities                  
  Investment in property and equipment   (13,994,250 )   12,638,999     (1,355,251 )
  Net Cash Used in Investing Activities   (15,015,684 )   12,638,999     (2,376,685 )

 

  Consolidated Balance Sheet   June 30, 2012  
      As Reported     Adjustment     As Restated  
      $      $      $   
                     
  ASSETS                  
                     
  Construction in Progress   22,701,685     (22,701,685 )   –  
  Total Assets   46,245,896     (22,701,685 )   23,544,211  
  STOCKHOLDER’S EQUITY                  
  Deficit Accumulated During the Exploration Stage   (101,842,227 )   (22,701,685 )   (124,543,912 )
  Total Stockholders’ Equity   42,339,999     (22,701,685 )   19,638,314  
  Total Equity   42,493,400     (22,701,685 )   19,791,715  
  Total Liabilities and Stockholders’ Equity   46,245,896     (22,701,685 )   23,544,211  

  Consolidated Statement of Operations   Three Months Ended June 30, 2012  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Mineral property expenditures   450,324     6,819,598     7,269,922  
  Total Operating Expenses   1,770,941     6,819,598     8,590,539  
  Loss from continuing operations   (1,758,379 )   (6,819,598 )   (8,577,977 )
  Net Loss and comprehensive loss   (1,758,379 )   (6,819,598 )   (8,577,977 )
  Net loss Attributable to the Company   (1,632,633 )   (6,819,598 )   (8,452,231 )
  Net Loss Per Share – Basic and Diluted   (0.02 )   (0.09 )   (0.11 )

  Consolidated Statement of Operations   Six Months Ended June 30, 2012  
      As Reported     Adjustment     As Restated  
      $      $      $   
                     
  Mineral property expenditures   688,111     12,947,618     13,635,729  
  Total Operating Expenses   3,493,995     12,947,618     16,441,613  
  Loss from continuing operations   (3,465,299 )   (12,947,618 )   (16,412,917 )
  Net Loss and comprehensive loss   (3,465,299 )   (12,947,618 )   (16,412,917 )
  Net loss Attributable to the Company   (3,279,527 )   (12,947,618 )   (16,227,145 )
  Net Loss Per Share – Basic and Diluted   (0.04 )   (0.17 )   (0.21 )

 

  Consolidated Statement of Operations   From inception to June 30, 2012  
      As Reported       Adjustment     As Restated  
       $     $      $   
                     
  Mineral property expenditures   53,810,662     22,701,685     76,512,347  
  Total Operating Expenses   107,987,201     22,701,685     130,688,886  
  Loss from continuing operations   (105,839,975 )   (22,701,685 )   (128,541,660 )
  Net Loss and comprehensive loss   (104,888,998 )   (22,701,685 )   (127,590,683 )
  Net loss Attributable to the Company   (101,842,227 )   (22,701,685 )   (124,543,912 )

  Consolidated Statement of Cash Flows   Six Months Ended June 30, 2012  
      As Reported       Adjustment     As Restated  
       $     $      $   
                     
  Operating Activities                  
                     
  Net Loss and comprehensive loss   (3,465,299 )   (12,947,618 )   (16,412,917 )
  Increase in asset retirement obligation liability   –     413,428     413,428  
  Accounts payable and accrued liabilities   (622,386 )   888,374     265,988  
  Net Cash Used in Operating Activities   (3,683,326 )   (11,645,816 )   (15,329,142 )
  Investing Activities                  
  Investment in property and equipment   (11,999,412 )   11,645,816     (353,596 )
  Net Cash Used in Investing Activities   (11,999,412 )   11,645,816     (353,596 )

  Consolidated Statement of Cash Flows   From Inception to June 30, 2012  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Operating Activities                  
                     
  Net Loss and comprehensive loss   (104,888,998 )   (22,701,685 )   (127,590,683 )
  Increase in asset retirement obligation liability   –     750,474     750,474  
  Stock-based compensation   26,828,880     105,119     26,933,999  
  Accounts payable and accrued liabilities   666,568     2,413,176     3,079,744  
  Net Cash Used in Operating Activities   (58,072,652 )   (19,432,916 )   (77,505,568 )
  Investing Activities                  
  Investment in property and equipment   (20,900,334 )   19,432,916     (1,467,418 )
  Net Cash Used in Investing Activities   (21,921,768 )   19,432,916     (2,488,852 )

 

  Consolidated Balance Sheet   September 30, 2012  
      As Reported     Adjustment     As Restated  
      $      $      $   
                     
  ASSETS                  
                     
  Construction in Progress   26,640,070     (26,640,070 )   –  
  Total Assets   43,139,934     (26,640,070 )   16,499,864  
                     
  STOCKHOLDER’S EQUITY                  
  Deficit Accumulated During the Exploration Stage   (103,511,137 )   (26,640,070 )   (130,151,207 )
  Total Stockholders’ Equity   40,784,169     (26,640,070 )   14,144,099  
  Total Equity   40,966,572     (26,640,070 )   14,326,502  
  Total Liabilities and Stockholders’ Equity   43,139,934     (26,640,070 )   16,499,864  

  Consolidated Statement of Operations   Three Months Ended September 30, 2012  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Mineral property expenditures   543,222     3,938,385     4,481,607  
  Total Operating Expenses   1,806,465     3,938,385     5,744,850  
  Loss from continuing operations   (1,795,991 )   (3,938,385 )   (5,734,376 )
  Net Loss and comprehensive loss   (1,795,991 )   (3,938,385 )   (5,734,376 )
  Net loss Attributable to the Company   (1,668,910 )   (3,938,385 )   (5,607,295 )
  Net Loss Per Share – Basic and Diluted   (0.02 )   (0.05 )   (0.07 )

  Consolidated Statement of Operations   Nine Months Ended September 30, 2012  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Mineral property expenditures   1,231,333     16,886,003     18,117,336  
  Total Operating Expenses   5,300,460     16,886,003     22,186,463  
  Loss from continuing operations   (5,261,290 )   (16,886,003 )   (22,147,293 )
  Net Loss and comprehensive loss   (5,261,290 )   (16,886,003 )   (22,147,293 )
  Net loss Attributable to the Company   (4,948,437 )   (16,886,003 )   (21,834,440 )
  Net Loss Per Share – Basic and Diluted   (0.06 )   (0.22 )   (0.28 )

 

  Consolidated Statement of Operations   From inception to September 30, 2012  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Mineral property expenditures   54,353,884     26,640,070     80,993,954  
  Total Operating Expenses   109,793,666     26,640,070     136,433,736  
  Loss from continuing operations   (107,635,966 )   (26,640,070 )   (134,276,036 )
  Net Loss and comprehensive loss   (106,684,989 )   (26,640,070 )   (133,325,059 )
  Net loss Attributable to the Company   (103,511,137 )   (26,640,070 )   (130,151,207 )

  Consolidated Statement of Cash Flows   Nine Months Ended September 30, 2012  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Operating Activities                  
                     
  Net Loss and comprehensive loss   (5,261,290 )   (16,886,003 )   (22,147,293 )
  Increase in asset retirement obligation liability   –     573,088     573,088  
  Accounts payable and accrued liabilities   (822,249 )   (655,176 )   (1,477,425 )
  Net Cash Used in Operating Activities   (6,008,211 )   (16,968,091 )   (22,976,302 )
  Investing Activities                  
  Investment in property and equipment   (17,328,761 )   16,968,091     (360,670 )
  Net Cash Used in Investing Activities   (17,329,054 )   16,968,091     (360,963 )

  Consolidated Statement of Cash Flows   From Inception to September 30, 2012  
      As Reported       Adjustment     As Restated  
      $      $      $   
                     
  Operating Activities                  
                     
  Net Loss and comprehensive loss   (106,684,989 )   (26,640,070 )   (133,325,059 )
  Increase in asset retirement obligation liability   –     910,134     910,134  
  Stock-based compensation   26,911,960     105,119     27,017,079  
  Accounts payable and accrued liabilities   466,705     869,626     1,336,331  
  Net Cash Used in Operating Activities   (60,397,537 )   (24,755,191 )   (85,152,728 )
  Investing Activities                  
  Investment in property and equipment   (26,229,683 )   24,755,191     (1,474,492 )
  Net Cash Used in Investing Activities   (27,251,410 )   24,755,191     (2,496,219 )