Property, Plant and Equipment

12 Months Ended

Aug. 31, 2018

Statement [Line Items]

Property, Plant and Equipment [Text Block]

7. Property, Plant and Equipment

		Nechalacho				Computer
		REE Project				and Office			Land and		Exploration		Leasehold
		(a)		Airstrip		Equipment			Building		Equipment		Improvements		Total
Cost
As at September 1, 2016	$	103,420,326	$	646,860	$	301,556		$	74,455	$	680,884	$	94,594	$	105,218,675
Additions		198,342		-		36,603			-		2,975		-		237,920
Disposals		-		-		(120,069	)		-		-		-		(120,069	)
As at August 31, 2017		103,618,668		646,860		218,090			74,455		683,859		94,594		105,336,526
Additions		259,681		-		1,958			16,450		11,673		-		289,762
Disposals		-		-		-			-		-		-		-
As at August 31, 2018	$	103,878,349	$	646,860	$	220,048		$	90,905	$	695,532	$	94,594	$	105,626,288
Accumulated Depreciation
As at September 1, 2016	$	-	$	218,663	$	248,802		$	3,760	$	595,859	$	90,651	$	1,157,735
Depreciation expense		-		24,366		32,715			3,223		26,747		3,943		90,994
Disposals		-		-		(120,069	)		-		-		-		(120,069	)
As at August 31, 2017		-		243,029		161,448			6,983		622,606		94,594		1,128,660
Depreciation expense		-		22,417		18,538			3,384		20,579		-		64,918
Disposals		-		-		-			-		-		-		-
As at August 31, 2018	$	-	$	265,446	$	179,986		$	10,367	$	643,185	$	94,594	$	1,193,578
Net Book Value
As at August 31, 2017	$	103,618,668	$	403,831	$	56,642		$	67,472	$	61,253	$	-	$	104,207,866
As at August 31, 2018	$	103,878,349	$	381,414	$	40,062		$	80,538	$	52,347	$	-	$	104,432,710

a) Nechalacho REE Project, Northwest Territories

During the year ended August 31, 2005, the Company acquired a 100% interest in five mining leases covering the Nechalacho rare earth elements deposit (“Nechalacho Deposit”) located at Thor Lake in the Mackenzie Mining District of the Northwest Territories. In addition, three mineral claims were staked in 2009 to cover favorable geology to the west of the mining leases which are in the process of being converted into mining leases.

The property is subject to an underlying 2.5% net smelter returns (“NSR”) royalty agreement. which can be bought back at the principal amount of $150,000 compounded annually at the average Canadian prime rate from May 2, 1982 to the buyback date, and which currently approximates $1.46 million.

During the year ended August 31, 2012, the Company entered into an accommodation agreement (the “Accommodation Agreement”) with the Deninu K’ue First Nation (“DKFN”). The DKFN is one of three Akaitcho bands who have used, occupied and have constitutionally protected aboriginal rights with respect to the lands on which the Nechalacho Deposit in the Northwest Territories is located.

The Accommodation Agreement provides for business and employment opportunities for the DKFN related to the Nechalacho Deposit and associated facilities in the Northwest Territories and contains measures to mitigate environmental and cultural impacts that may result from the project development. The Accommodation Agreement also commits the DKFN to supporting timely completion of the environmental assessment, permitting and development processes of the Nechalacho REE Project, and provides for the DKFN to participate in the project economics.

In conjunction with the Accommodation Agreement, the Company had issued 10,000 common shares of the Company in August 2012 and granted an aggregate of 50,000 non-transferrable common share purchase warrants of the Company to the DKFN since signing the Accommodation Agreement until August 31, 2016 (of which 10,000 warrants were granted during the year ended August 31, 2016). The common shares are subject to certain contractual restrictions on transfer pending receipt of certain regulatory permits and approvals for the Nechalacho REE Project.