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Capital Stock
12 Months Ended
Dec. 31, 2019
Stockholders' Equity Note [Abstract]  
Capital Stock

8.

 Capital Stock


a)

Common Stock


During the year ended December 31, 2019, the Company issued 6,667,149 shares of common stock to companies controlled by officers and directors as compensation for service in prior years. This compensation was recorded in prior years at a fair value ranging from $0.05 to $0.10 per share. Additionally, 1,000,000 shares of common stock were issued to a company controlled by the CEO amounting to $96,225 at a fair value of $0.05, and 1,000,000 shares of common stock were issued to a company controlled by the CFO amounting to $50,000, at a fair value of $0.05. Both amounts are recorded as compensation in the current year.


A further 8,300,000 shares of common stock were issued at a fair value ranging from $0.15 to $0.20  per share in the acquisition of mineral rights for a total of $1,340,000.

  

During the year ended December 31, 2019, the Company issued 75,590 shares of common stock to third parties under the S-1 registration filed with the SEC. The total value of stock issued was $11,339.


During the year December 31, 2018, the Company issued no shares of common stock.  


b)

Stock To Be Issued


As of December 31, 2019, the Company has yet to issue 5,971,577 shares of common stock at the fair values ranging from $0.05 to $0.15 per share for a total of $1,688,834. Of these, 2,400,000 shares of common stock became issuable during the year for acquisition of mineral rights at the fair values ranging from $0.15 to $0.20 per share.  In addition, 1,576,534 shares of common stock are issuable to directors for services recorded in prior years. An additional 1,995,043 shares of common stock are yet to be issued for debt settlements from prior years.  


For the year ended December 31, 2018, 3,000,000 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 $150,000 within shares to be issued. A further 75,590 Flow-Through shares are to be issued valued at $11,338 related to S-1 offering.


Including the above noted items as at December 31, 2018, a further 10,314,316 shares have yet to be issued for prior transactions, including services, compensation and mineral property acquisitions, at the fair values ranging from $0.05 to $0.15 per share for a total of $1,793,530.


c)

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.


As of December 31, 2019, the Company has dividends payable of $359,862 (2018 - $305,329). As at December 31, 2019 and 2018, the Company was in arrears in the dividends on preferred shares.


Preferred dividends for the years ended December 31, 2019 and 2018 had an effect of $0.00 and $0.00, respectively on loss per share available to common stockholders.


d)

Stock-Based Compensation


The Company incurred stock-based compensation expense in connection with its compensation agreements for its directors, management, and employees. 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 and is recorded at the time the stock becomes owing to the individual. Stock issued to a director, manager, or employee is 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 year ended December 31, 2019, the Company issued 2,000,000 (2018 - 3,000,000) shares of common stock related to stock-based compensation in connection with stock-based compensation arrangements with the CEO and CFO of the Company. At the time of grant, the fair value of the related shares ranged from $0.05 - $0.16 per share and resulted in compensation expense and stock to be issued in the amount of $192,450 in the year ended December 31, 2019 and $150,000 in the year ended December 31, 2018. These fees were recorded as a component of consulting fees on the statements of operations and comprehensive loss.