Note 11 - Income Taxes

12 Months Ended

May 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

11. INCOME TAXES

A reconciliation of income taxes at statutory rates with the reported taxes is as follows for the years ended

May 31:

	2019			2018
Loss before income taxes	$	(10,858,005	)	$	(9,298,163	)
Statutory Canadian corporate tax rate		26.42	%		26.42	%
Income tax recovery at statutory rates	$	(2,868,322	)	$	(2,456,264	)
Stock-based compensation		431,637			177,846
Effect of tax rate change		(12,432	)		(109,857	)
Difference in tax rates in other jurisdictions		(549,814	)		(522,120	)
Tax benefits not realized		2,998,931			2,910,395
Income tax recovery	$	–		$	–

The significant components of the Company’s deferred income tax assets and liabilities are as follows:

	2019			2018
Deferred income tax assets (liabilities)
Mineral properties	$	21,333,000		$	18,619,000
Property and equipment		12,000			42,000
Share issuance costs		27,000			40,000
Non-capital losses available for future periods		9,763,000			8,378,000
		31,135,000			27,079,000
Valuation allowance		(31,135,000	)		(27,079,000	)
Net deferred tax assets	$	–		$	–

At

May 31, 2019,

the Company has available non-capital tax losses for Canadian income tax purposes of approximately

$13,583,000

and net operating loss for US tax purposes of approximately

$17,930,000

available for carry-forward to reduce future years’ taxable income, if

not

utilized, expiring as follows:

	Canada		United States
2029	$	–	$	1,293,000
2030		–		2,000
2031		379,000		192,000
2032		1,089,000		1,646,000
2033		1,443,000		2,173,000
2034		1,733,000		4,233,000
2035		1,806,000		1,967,000
2036		1,354,000		1,940,000
2037		1,624,000		1,342,000
2038		1,949,000		1,538,000
2039		2,206,000		1,604,000
	$	13,583,000	$	17,930,000

In addition, the Company has available mineral resource expenses that are related to the Company’s exploration activities in the United States of approximately

$67,679,000

and in Canada of approximately

$333,000,

which

may

be deductible for tax purposes. Future tax benefits, which

may

arise as a result of applying these deductions to taxable income, have

not

been recognized in these accounts due to the uncertainty of future taxable income.