Note 4 - Notes Receivable

12 Months Ended

Nov. 30, 2020

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE 4 – NOTES RECEIVABLE

The Company has notes receivable from Newmont Corporation (“Newmont”) including a $75,000 note receivable upon the earlier of the completion of a new Galore Creek project pre-feasibility study or July 27, 2021, and a $25,000 note receivable upon the earlier of the completion of a Galore Creek project feasibility study or July 27, 2023. On closing of the Galore Creek sale, management estimated the fair value of the $75,000 and $25,000 notes receivable at $88,398, assuming payments in three and five years, respectively, at a discount rate of 3.6% based on quoted market values for Newmont debt with a similar term. The carrying values of the notes receivable are being accreted to $75,000 and $25,000 over three and five years, respectively. As of November 30, 2020, the carrying value of the notes receivable was $96,016 including $7,618 of accumulated accretion. A contingent note for $75,000 is receivable upon approval of a Galore Creek project construction plan by the owner(s). No value was assigned to the final $75,000 contingent note receivable. Management determined that Galore Creek project construction approval was not probable as of the closing of the Galore Creek sale. Management’s assessment did not change as of November 30, 2020.

Changes in the Company’s Notes Receivable are summarized as follows:

	Years ended November 30,
	2020		2019		2018
Balance – beginning of period	$	92,679	$	89,459	$	—
Fair value of notes receivable		—		—		88,398
Accretion of notes receivable		3,337		3,220		1,061
Balance – end of period	$	96,016	$	92,679	$	89,459

Notes receivable consist of:

	As of November 30,
	2020		2019
Current portion	$	72,611	$	—
Non-current portion		23,405		92,679
	$	96,016	$	92,679