Note 15 - Discontinued Operations

12 Months Ended

Nov. 30, 2020

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 15 – DISCONTINUED OPERATIONS

Galore Creek transaction

On July 27, 2018, the Company completed the sale of its 50% interest in the Galore Creek assets to Newmont. The Company received $100,000 on closing; a note for $75,000 receivable upon the earlier of the completion of a new Galore Creek project pre-feasibility study or July 27, 2021; a note for $25,000 receivable upon the earlier of the completion of a Galore Creek project feasibility study or July 27, 2023; and an additional note for $75,000 is receivable upon the approval of a Galore Creek project construction plan by the owner(s). The Company has no remaining interest in Galore Creek.

The details of our Net loss from discontinued operations, net of tax for the year ended November 30, 2018 are set forth below:

Equity loss – Galore Creek	$	(1,203	)
Income tax expense		—
Galore Creek operations, net of tax		(1,203	)
Loss on sale of Galore Creek, net of tax		(80,096	)
	$	(81,299	)

For the year ended November 30, 2018, the Company recognized a Loss on sale of Galore Creek, net of tax, calculated as follows:

Cash consideration received on closing	$	100,000
Refund of reclamation deposits		4,897
Less closing costs		(721	)
		104,176
Fair value of notes receivable (Note 5)		88,398
Net proceeds		192,574
Less book values:
Investment in GCP		(248,367	)
Copper Canyon mineral property		(44,577	)
Reclamation deposits		(4,967	)
Reclassification of cumulative foreign currency translation adjustments		13,776
Deferred income tax recovery		11,465
	$	(80,096	)

Other comprehensive income (loss) for the year ended November 30, 2018 was not impacted by discontinued operations as Galore Creek did not have any Other comprehensive income (loss).

The details of our Net cash provided from (used in) investing activities of discontinued operations for the year ended November 30, 2018 are set forth below:

Funding of Galore Creek Partnership	$	(1,475	)
Net cash proceeds received		99,279
Reclamation deposits		4,644
	$	102,448