Capital Stock

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Capital Stock

6.

Capital Stock

a)

Common Stock

For the six months June 30, 2018, the Company issued no shares of common stock.

Stock To Be Issued

For the six months ended June 30, 2018, 1,000,000 shares became issuable to directors and officers of the Company for services rendered. These transactions have been recorded as stock-based compensation having a total value of $50,000 within shares to be issued.

As at June 30, 2018 a further 7,238,725 have yet to be issued for services at the transaction price ranging from $0.05 to $0.15 per share for a total of $1,657,192. Of these 1,628,376 were for settlement of shareholder loans owed by the Company totaling $81,418, 500,000 were for acquisition of mineral rights totaling $50,000 and 3,637,039 were due to Directors and Officers of the Company services totaling $181,851 with the balance yet to be issued have been recorded in the current and prior periods.

b)

Preferred Stock

The Company has authorized Class A preferred stock available to be issued for $1.00 per share, are non-participating and non-voting and accrue cumulative dividends at the rate of 10% per annum. The Company may retract the stock at any time upon the payment of $1.00 per share plus any unpaid dividends. In the event of any wind-up of the Company, the Class A preferred stock has a priority distribution of $1.00 per share plus any unpaid dividends before any distribution to the common stockholders.

c)

Dividends

As at June 30, 2018, the Company was in arrears in dividends on preferred shares. The balance of dividends payable of $255,754 (2017 - $255,754) includes dividends of $176,400 (2017 - $158,400) and accrued interest of $52,285 (2017 -  $52,285), accrued at 10.0% interest compounded annually.

Preferred dividends for the six months ended June 30, 2018 had an effect of $0.00 and $0.00, respectively on loss per share available to common stockholders.

d)

Warrants

The Company has no warrants outstanding as of June 30, 2018.

e)

Stock-Based Compensation

The Company incurred stock-based compensation expense in connection with its compensation agreements for its directors and officers. Under these agreements, common stock may be issued as a signing bonus or at certain benchmark dates within an individual’s period of service. Stock-based compensation is calculated as the fair value of the stock issued or to be issued to an individual at the time the employment contract was signed  and is recorded at the time becomes owing to the individual. Stock issued to a director, manager, or employee may be deferred in the event that their contract requires the individual to remain employed with the Company for a specified time period after issuance.

For the six months ended June 30, 2018, the Company’s 1,000,000 shares became issuable in connection with stock-based compensation arrangements.

These shares were valued at $0.05 per share and resulted in compensation expense of $50,000. These fees were recorded as a component of consulting fees in the amount of $50,000 on the statements of operations and comprehensive loss.