Note 15 - Income Taxes

12 Months Ended

Dec. 31, 2018

Statement Line Items [Line Items]

Disclosure of income tax [text block]

15. INCOME TAXES

The income taxes recognized in profit or loss is as follows:

		December 31, 2018			December 31, 2017
Deferred tax expense		(796	)		(728	)
Total income tax expense	$	(796	)	$	(728	)

The provision for income taxes reported differs from the amounts computed by applying statutory Canadian federal and provincial tax rates to the loss before tax provision due to the following:

		December 31,  2018			December 31, 2017
Loss for the year before income taxes	$	(5,006	)	$	(5,769	)
Statutory tax rate		27	%		26	%
Recovery of income taxes computed at statutory rates		1,352			1,500
Share based payments		(569	)		(588	)
Mexican inflationary adjustments		(1,002	)		(80	)
Differing effective tax rate on loss in foreign jurisdiction		63			93
Impact of change in statutory tax rates		–			444
Unrecognized deferred tax assets		1,516			(4,671	)
Impact of foreign exchange and other		(2,156	)		2,574
Total income tax expense	$	(796	)	$	(728	)

The approximate tax effect of each item that gives rise to the Company’s unrecognized and recognized deferred tax assets and liabilities as at

December 31, 2018

and

2017

are as follows:

		December 31, 2018			December 31, 2017
Deferred income tax assets
Exploration and evaluation assets	$	1,031		$	1,303
Non-capital losses		1,761			872
Capital losses		551			–
Other		4			35
	$	3,347		$	2,210
Deferred income tax liablities
Exploration and evaluation assets	$	(27	)	$	–
Investment in associate		(3,493	)		(3,429	)
Unrealized capital gain on foreign exchange		(1,940	)		–
Other		–			(98	)
	$	(5,460	)	$	(3,527	)
Net deferred income tax liability	$	(2,113	)	$	(1,317	)

The Company's movement of net deferred tax liabilities is described below:

		December 31,  2018			December 31, 2017
At January 1	$	(1,317	)	$	(589	)
Deferred income tax (expense) recovery through income statement		(796	)		(728	)
At December 31	$	(2,113	)	$	(1,317	)

The Company has the following deductible temporary differences for which

no

deferred tax assets have been recognized:

		December 31,  2018	expiry dates		December 31, 2017
Non-capital losses	$	70,659	2020-2038	$	69,925
Exploration and evaluation assets		17,261	no expiry		21,103
Financing fees		1,737	2039 - 2041		3,657
Other		3,135	no expiry		2,977
Total	$	92,792		$	97,662

At

December 31, 2018,

the Company has non-capital loss carry forwards in Canada aggregating

$37,717

(

December 31, 2017:

$40,373

) which expire over the period between

2026

to

2038,

available to offset future taxable income in Canada, and the Company has capital loss carry forwards in Canada of

$4,081

(

December 31, 2017:

$1,635

) which are available only to offset future capital gains for Canadian tax purposes and

may

be carried forward indefinitely.

At

December 31, 2018,

the Company has tax loss carry forwards in Mexico aggregating

$39,074

(

December 31, 2017:

$32,249

) which expire over the period

2020

to

2028,

available to offset future taxable income in Mexico.

At

December 31, 2018,

the Company has

$187

(

December 31, 2017:

$23

) included in cash that is held by foreign subsidiaries, and hence

not

available to fund domestic operations unless the funds were repatriated. There are

no

taxes payable on the funds should the Company choose to repatriate them, however, the Company does

not

intend to repatriate these funds in the next year.