• Filing Date: 2020-06-12
  • Form Type: 10-Q
  • Description: Quarterly report
v3.20.1
Document and Entity Information - shares
6 Months Ended
Apr. 30, 2020
Jun. 12, 2020
Document And Entity Information [Abstract]    
Entity Registrant Name SILVER BULL RESOURCES, INC.  
Entity Central Index Key 0001031093  
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Apr. 30, 2020  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
Current Fiscal Year End Date --10-31  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Common Stock, Shares Outstanding   236,328,214
Entity Incorporation State Country Name NV  
Entity File Number 001-33125  
v3.20.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Apr. 30, 2020
Oct. 31, 2019
CURRENT ASSETS    
Cash and cash equivalents $ 1,334,444 $ 1,431,634
Value-added tax receivable, net of allowance for uncollectible taxes of $275,904 and $327,624 respectively (Note 6) 215,961 255,847
Income tax receivables 595 784
Other receivables 8,959 8,543
Prepaid expenses and deposits 153,471 204,713
Total Current Assets 1,713,430 1,901,521
Office and mining equipment, net (Note 7) 208,376 226,413
Property concessions (Note 8) 5,019,927 5,019,927
Goodwill (Note 9) 2,058,031 2,058,031
TOTAL ASSETS 8,999,764 9,205,892
CURRENT LIABILITIES    
Accounts payable 151,519 328,943
Accrued liabilities and expenses 242,473 305,446
Income tax payable 2,500 1,825
Stock option liability (Note 11) 4,803
Total Current Liabilities 396,492 641,017
COMMITMENTS AND CONTINGENCIES (Notes 1 and 14)
STOCKHOLDERS' EQUITY (Notes 4, 10, 11 and 12)    
Common stock, $0.01 par value; 300,000,000 shares authorized, 236,328,214, and 236,328,214 shares issued and outstanding, respectively 2,363,282 2,363,282
Additional paid-in capital 136,987,735 135,902,944
Accumulated deficit (130,839,993) (129,793,599)
Other comprehensive income 92,248 92,248
Total Stockholders' Equity 8,603,272 8,564,875
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,999,764 $ 9,205,892
v3.20.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
Apr. 30, 2020
Oct. 31, 2019
Statement of Financial Position [Abstract]    
Allowance for uncollectible taxes, current $ 275,904 $ 327,624
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 300,000,000 300,000,000
Common stock, shares issued 236,328,214 236,328,214
Common stock, shares outstanding 236,328,214 236,328,214
v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Apr. 30, 2020
Apr. 30, 2019
Apr. 30, 2020
Apr. 30, 2019
Income Statement [Abstract]        
REVENUES
EXPLORATION AND PROPERTY HOLDING COSTS        
Exploration and property holding costs 84,633 356,131 288,163 814,160
Depreciation 8,916 7,381 18,037 14,598
TOTAL EXPLORATION AND PROPERTY HOLDING COSTS 93,549 363,512 306,200 828,758
GENERAL AND ADMINISTRATIVE EXPENSES        
Personnel 136,566 166,160 292,783 339,367
Office and administrative 85,443 154,996 156,871 280,888
Professional services 91,479 71,397 171,800 136,278
Directors' fees 37,289 53,300 74,772 107,765
Provision for uncollectible value-added taxes (Note 6) 5,063 11,639 15,641 20,955
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES 355,840 457,492 711,867 885,253
LOSS FROM OPERATIONS (449,389) (821,004) (1,018,067) (1,714,011)
OTHER (EXPENSES) INCOME        
Interest income 2,108 6,265 7,588 6,384
Foreign currency transaction (loss) gain (26,537) 2,073 (30,539) 7,904
Change in fair value of stock option liability (Note 11) 16,983 18,774
Change in fair value of warrant derivative liability 484,636 370,223
TOTAL OTHER (EXPENSES) INCOME (24,429) 509,957 (22,951) 403,285
LOSS BEFORE INCOME TAXES (473,818) (311,047) (1,041,018) (1,310,726)
INCOME TAX EXPENSE 4,133 3,312 5,376 4,984
NET LOSS AND COMPREHENSIVE LOSS $ (477,951) $ (314,359) $ (1,046,394) $ (1,315,710)
BASIC AND DILUTED NET LOSS PER COMMON SHARE $ (0.01)
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (Note 5) 236,328,214 236,010,911 236,328,214 235,435,436
v3.20.1
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Other Comprehensive Income [Member]
Total
Balance at Oct. 31, 2018 $ 2,348,682 $ 133,015,768 $ (125,855,030) $ 92,248 $ 9,601,668
Balance, shares at Oct. 31, 2018 234,868,214       234,868,214
Issuance of common stock as follows: - Exercise of warrants at a price of Canadian Dollar ("$CDN") 0.13 per share less costs of $210 (Note 10) $ 14,600 128,276 $ 142,876
Issuance of common stock as follows: - Exercise of warrants at a price of Canadian Dollar ("$CDN") 0.13 per share less costs of $210 (Note 10), (in shares) 1,460,000        
Issuance of common stock as follows: - Earn-in option agreement (Note 4) 2,221,380 2,221,380
Reclassification to additional paid-in capital upon exercise of warrants at price of $CDN 0.13 12,126 12,126
Stock option activity as follows:          
Stock-based compensation for options issued to directors, officers, employees and consultants (Note 11) 122,131 122,131
Net loss (1,315,710) (1,315,710)
Balance at Apr. 30, 2019 $ 2,363,282 135,499,681 (127,170,740) 92,248 $ 10,784,471
Balance, shares at Apr. 30, 2019 236,328,214       236,328,214
Balance at Jan. 31, 2019 $ 2,352,682 134,162,059 (126,856,381) 92,248 $ 9,750,608
Balance, shares at Jan. 31, 2019 235,268,214        
Issuance of common stock as follows: - Exercise of warrants at a price of Canadian Dollar ("$CDN") 0.13 per share less costs of $210 (Note 10) $ 10,600 92,928 103,528
Issuance of common stock as follows: - Exercise of warrants at a price of Canadian Dollar ("$CDN") 0.13 per share less costs of $210 (Note 10), (in shares) 1,060,000        
Issuance of common stock as follows: - Earn-in option agreement (Note 4) 1,175,380 1,175,380
Reclassification to additional paid-in capital upon exercise of warrants at price of $CDN 0.13 9,094 9,094
Stock option activity as follows:          
Stock-based compensation for options issued to directors, officers, employees and consultants (Note 11) 60,220 60,220
Net loss (314,359) (314,359)
Balance at Apr. 30, 2019 $ 2,363,282 135,499,681 (127,170,740) 92,248 $ 10,784,471
Balance, shares at Apr. 30, 2019 236,328,214       236,328,214
Balance at Oct. 31, 2019 $ 2,363,282 135,902,944 (129,793,599) 92,248 $ 8,564,875
Balance, shares at Oct. 31, 2019 236,328,214       236,328,214
Issuance of common stock as follows: - Earn-in option agreement (Note 4) 1,042,538 $ 1,042,538
Reclassification to additional paid-in capital of stock option liability (Notes 3 and 11) 4,803 4,803
Stock option activity as follows:          
Stock-based compensation for options issued to directors, officers, employees and consultants (Note 11) 37,450 37,450
Net loss (1,046,394) (1,046,394)
Balance at Apr. 30, 2020 $ 2,363,282 136,987,735 (130,839,993) 92,248 $ 8,603,272
Balance, shares at Apr. 30, 2020 236,328,214       236,328,214
Balance at Jan. 31, 2020 $ 2,363,282 136,821,644 (130,362,042) 92,248 $ 8,915,132
Balance, shares at Jan. 31, 2020 236,328,214       236,328,214
Issuance of common stock as follows: - Earn-in option agreement (Note 4) 147,366 $ 147,366
Stock option activity as follows:          
Stock-based compensation for options issued to directors, officers, employees and consultants (Note 11) 18,725 18,725
Net loss (477,951) (477,951)
Balance at Apr. 30, 2020 $ 2,363,282 $ 136,987,735 $ (130,839,993) $ 92,248 $ 8,603,272
Balance, shares at Apr. 30, 2020 236,328,214       236,328,214
v3.20.1
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical)
3 Months Ended 6 Months Ended
Apr. 30, 2019
USD ($)
Apr. 30, 2019
USD ($)
Apr. 30, 2019
$ / shares
Warrant issuance cost | $   $ 210  
Warrant [Member] | $CDN 0.13 Unit [Member]      
Warrant issuance cost | $ $ 140 $ 210  
Warrant [Member] | $CDN 0.13 Unit [Member] | CDN [Member]      
Equity issuance, price per share | $ / shares     $ 0.13
Warrant One [Member] | $CDN 0.13 Unit [Member] | CDN [Member]      
Equity issuance, price per share | $ / shares     $ 0.13
v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
6 Months Ended
Apr. 30, 2020
Apr. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,046,394) $ (1,315,710)
Adjustments to reconcile net loss to net cash used by operating activities:    
Depreciation 18,037 14,598
Provision for uncollectible value-added taxes 15,641 20,955
Foreign currency transaction loss 27,191 3,157
Change in fair value of warrant derivative liability (370,223)
Change in fair value of stock option liability (18,774)
Stock options issued for compensation 37,450 122,131
Changes in operating assets and liabilities:    
Value-added tax receivable (26,890) (65,670)
Income tax receivable 37 (337)
Other receivables (1,364) 2,171
Prepaid expenses and deposits 50,754 47,517
Accounts payable (177,426) (108,467)
Accrued liabilities and expenses (32,262) (220,096)
Income tax payable 675 (3,200)
Net cash used in operating activities (1,134,551) (1,891,948)
CASH FLOWS FROM INVESTING ACTIVITY:    
Acquisition of property concessions (11,820)
Net cash used in investing activity (11,820)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Property concessions funding (Note 4) 1,042,538 2,221,380
Proceeds from exercise of warrants, net of costs (Note 10) 142,876
Net cash provided by financing activities 1,042,538 2,364,256
Effect of exchange rates on cash and cash equivalents (5,177) 1,067
Net (decrease) increase in cash and cash equivalents (97,190) 461,555
Cash and cash equivalents beginning of period 1,431,634 3,025,839
Cash and cash equivalents end of period 1,334,444 3,487,394
SUPPLEMENTAL CASH FLOW DISCLOSURES:    
Income taxes paid 4,769 3,192
Interest paid
v3.20.1
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN
6 Months Ended
Apr. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

Silver Bull Resources, Inc. (the “Company”) was incorporated in the State of Nevada on November 8, 1993 as the Cadgie Company for the purpose of acquiring and developing mineral properties. The Cadgie Company was a spin-off from its predecessor, Precious Metal Mines, Inc. On June 28, 1996, the Company’s name was changed to Metalline Mining Company. On April 21, 2011, the Company’s name was changed to Silver Bull Resources, Inc. The Company’s fiscal year-end is October 31. The Company has not realized any revenues from its planned operations and is considered an exploration stage company. The Company has not established any reserves with respect to its exploration projects and may never enter into the development stage with respect to any of its projects.

 

The Company engages in the business of mineral exploration. The Company currently owns a number of property concessions in Mexico (collectively known as the “Sierra Mojada Property”). The Company conducts its operations in Mexico through its wholly-owned subsidiary corporations, Minera Metalin S.A. de C.V. (“Minera Metalin”), Contratistas de Sierra Mojada S.A. de C.V. (“Contratistas”) and Minas de Coahuila SBR S.A. de C.V.

 

On April 16, 2010, Metalline Mining Delaware, Inc., a wholly-owned subsidiary of the Company incorporated in the State of Delaware, was merged with and into Dome Ventures Corporation (“Dome”), a Delaware Corporation. As a result, Dome became a wholly-owned subsidiary of the Company. Dome has a wholly-owned subsidiary, Dome Asia Inc. (“Dome Asia”), which is incorporated in the British Virgin Islands. Dome Asia has a wholly-owned subsidiary, Dome Minerals Nigeria Limited, incorporated in Nigeria.

 

The Company’s efforts and expenditures have been concentrated on the exploration of properties, principally in the Sierra Mojada Property located in Coahuila, Mexico. The Company has not determined whether its exploration properties contain ore reserves that are economically recoverable. The ultimate realization of the Company’s investment in exploration properties is dependent upon the success of future property sales, the existence of economically recoverable reserves, and the ability of the Company to obtain financing or make other arrangements for exploration, development, and future profitable production activities. The ultimate realization of the Company’s investment in exploration properties cannot be determined at this time.

 

Going Concern

 

Since its inception in November 1993, the Company has not generated revenue and has incurred an accumulated deficit of $130,839,993. Accordingly, the Company has not generated cash flows from operations, and since inception the Company has relied primarily upon proceeds from private placements and registered direct offerings of the Company’s equity securities and warrant exercises as the primary sources of financing to fund the Company’s operations. As of April 30, 2020, the Company had cash and cash equivalents of $1,334,444. Based on the Company’s limited cash and cash equivalents, and history of losses, there is substantial doubt as to whether the Company’s existing cash resources are sufficient to enable the Company to continue its operations for the next 12 months as a going concern. Management plans to pursue possible financing and strategic options including, but not limited to obtaining additional equity financing. Management has successfully pursued these options previously and believes that they alleviate the substantial doubt that the Company can continue its operations for the next 12 months as a going concern. However, there is no assurance that the Company will be successful in pursuing these plans.

 

These interim condensed consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary in the event the Company can no longer continue as a going concern. Such adjustments could be material.

v3.20.1
BASIS OF PRESENTATION
6 Months Ended
Apr. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION

NOTE 2 – BASIS OF PRESENTATION

The Company’s interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim reporting. All intercompany transactions and balances have been eliminated during consolidation. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The interim condensed consolidated balance sheet at October 31, 2019 was derived from the audited consolidated financial statements. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended October 31, 2019.

All figures are in United States dollars unless otherwise noted.

The interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, except as disclosed in Note 3. In the opinion of management, the interim condensed consolidated financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim periods presented. Uncertainties with respect to estimates and assumptions are inherent in the preparation of the Company’s interim condensed consolidated financial statements. Accordingly, operating results for the six months ended April 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2020.

v3.20.1
SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Apr. 30, 2020
Accounting Policies [Abstract]  
SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies are defined in the Company’s Annual Report on Form 10-K for the year ended October 31, 2019 filed with the SEC on January 13, 2020, except as follows.

Recent Accounting Pronouncements Adopted in the Six-Month Period Ended April 30, 2020

On November 1, 2019, the Company adopted the Financial Accounting Standards Board’s (the “FASB’s”) Accounting Standards Update (“ASU”) 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”, which became effective for fiscal years beginning after December 15, 2018. ASU 2018-07 simplifies the accounting for nonemployee share-based payments, aligning it more closely with the accounting for employee awards. Under the adoption provisions, equity-classified awards for which a measurement date had already been established as of the adoption date, including the Company’s Earn-In Option Agreement (Note 4), are unaffected by ASU 2018-07. As a result of this adoption, the Company reclassified $4,803 from stock option liability to additional paid-in capital (Note 11).

 

On November 1, 2019, the Company adopted the FASB’s ASU 2016-02, “Leases,” (Topic 842), together with subsequent amendments, which became effective for fiscal years beginning after December 15, 2018. The new standard requires a lessee to recognize on its balance sheet, a liability to make lease payments (the lease liability) and the right-of-use (“ROU”) asset representing the right to the underlying asset for the lease term and allows companies to elect to apply the standard at the effective date. The Company elected the package of practical expedients permitted under the transition guidance, which applies to expired or existing leases and allows the Company not to reassess whether a contract contains a lease, the lease classification, and any initial direct costs incurred.

 

The Company also elected a number of optional practical expedients including the following:

 

  • the short-term lease recognition exemption whereby ROU assets and lease liabilities will not be recognized for leasing arrangements with terms less than one year;
  • the land easements practical expedient whereby existing land easements are not reassessed under the new standard;
  • the hindsight practical expedient when determining lease term at transition; and
  • the practical expedient not to apply lease accounting to the intangible right to explore for those natural resources, and rights to use the land in which those natural resources are contained.

The adoption of this update did not have an impact on the Company’s financial position, results of operations or cash flows and disclosures.

 

Recent Accounting Pronouncements Not Yet Adopted

In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its financial position, results of operations or cash flows and disclosures.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the SEC did not or are not expected to have a material impact on the Company’s present or future consolidated financial statements.

v3.20.1
EARN-IN OPTION AGREEMENT
6 Months Ended
Apr. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]  
EARN-IN OPTION AGREEMENT

NOTE 4 – EARN-IN OPTION AGREEMENT

On June 1, 2018, the Company and its subsidiaries Minera Metalin and Contratistas entered into an Earn-In Option Agreement (the “Option Agreement”) with South32 International Investment Holdings Pty Ltd (“South32”), a wholly-owned subsidiary of South32 Limited (ASX/JSE/LSE: S32), whereby South32 is able to obtain an option to purchase 70% of the shares of Minera Metalin and Contratistas (the “Option”). Minera Metalin owns the Sierra Mojada Property located in Coahuila, Mexico (the “Sierra Mojada Project”), and Contratistas supplies labor for the Sierra Mojada Project. Under the Option Agreement, South32 earns into the Option by funding a collaborative exploration program on the Sierra Mojada Project. Upon the terms and subject to the conditions set forth in the Option Agreement, in order for South32 to earn and maintain its four-year Option, South32 must have contributed to Minera Metalin for exploration of the Sierra Mojada Project at least $3 million by the end of Year 1, $6 million by the end of Year 2, $8 million by the end of Year 3 and $10 million by the end of Year 4 (the “Initial Funding”). Funding is made on a quarterly basis based on the subsequent quarter’s exploration budget. South32 may exercise the Option by contributing $100 million to Minera Metalin (the “Subscription Payment”), less the amount of Initial Funding previously contributed by South32. The issuance of shares upon notice of exercise of the Option by South32 is subject to antitrust approval by the Mexican government. If the full amount of the Subscription Payment is advanced by South32 and the Option becomes exercisable and is exercised, the Company and South32 will be obligated to contribute funding to Minera Metalin on a 30/70 pro rata basis. If South32 elects not to continue with the Option during the four-year option period, the Sierra Mojada Project will remain 100% owned by the Company. The exploration program will be initially managed by the Company, with South32 being able to approve the exploration program funded by it. The Company received funding of $3,144,163 from South32 for Year 1 of the Option Agreement. In April 2019, the Company received a notice from South32 to maintain the Option Agreement for Year 2 by providing cumulative funding of $6 million by the end of such period. The Company has received funding of $1,361,968 from South32 for Year 2 of the Option Agreement as of April 30, 2020. In June 2020, the Company received a payment of $52,734 for Year 2 of the Option Agreement from South32, which time period has been extended by an event of force majeure described in more detail below. If the Option Agreement is terminated by South32 without cause or if South32 is unable to obtain antitrust authorization from the Mexican government, the Company is under no obligation to reimburse South32 for amounts contributed under the Option Agreement.

Upon exercise of the Option, Minera Metalin and Contratistas are required to issue common shares to South32. Pursuant to the Option Agreement, following exercise and until a decision has been made by the board of directors of Minera Metalin to develop and construct a mine on the Sierra Mojada Project, each shareholder holding greater than or equal to 10% of the shares may withdraw as an owner in exchange for a 2% net smelter royalty on products produced and sold from the Sierra Mojada Project. Any shareholder whose holdings are reduced to less than 10% must surrender its interest in exchange for a 2% net smelter royalty.

The Company has determined that Minera Metalin and Contratistas are variable interest entities and that the Option Agreement has not resulted in the transfer of control of the Sierra Mojada Project to South32. The Company has also determined that the Option Agreement represents non-employee share-based compensation associated with the collaborative exploration program undertaken by the parties. The compensation cost is expensed when the associated exploration activity occurs. The share-based payments have been classified as equity instruments and valued based on the fair value of the cash consideration received, as it is more reliably measurable than the fair value of the equity interest. If the Option is exercised and shares are issued prior to a decision to develop a mine, such shares would be classified as temporary equity as they would be contingently redeemable in exchange for a net smelter royalty under circumstances that are not wholly in control of the Company or South32 and are not currently probable.

No portion of the equity value has been classified as temporary equity as the Option has no intrinsic value.

 

On October 11, 2019, the Company and its subsidiary Minera Metalin issued a notice of force majeure to South32 pursuant to the Option Agreement. Due to a blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (“Mineros Norteños”), the Company has temporarily halted all work on the Sierra Mojada Property. The notice of force majeure was issued because of the blockade’s impact on the ability of the Company and its subsidiary Minera Metalin to perform their obligations under the Option Agreement. Pursuant to the Option Agreement, any time period provided for in the Option Agreement will generally be extended by a period equal to the period of delay caused by the event of force majeure. As of June 12, 2020, the blockade by Mineros Norteños at, on and around the Sierra Mojada Property is ongoing.

 

The combined approximate carrying amount of the assets and liabilities of Contratistas and Minera Metalin (consolidated with their wholly-owned subsidiary) are as follows at April 30, 2020:

 

 

Assets:  Mexico
Cash and cash equivalents  $17,000 
Value-added tax receivable, net   216,000 
Other receivables   4,000 
Income tax receivable   1,000 
Prepaid expenses and deposits   100,000 
Office and mining equipment, net   208,000 
Property concessions   5,020,000 
Total assets  $5,566,000 

 

 

Liabilities:   
Accounts payable  $51,000 
Accrued liabilities and expenses   116,000 
Payable to Silver Bull Resources, Inc. to be converted to equity upon exercise of the Option   3,348,000 
Total liabilities  $3,515,000 
      
Net advances and investment in the Company’s Mexican subsidiaries  $2,051,000 

 

In addition, at April 30, 2020, Silver Bull Resources, Inc. held $49,000 of cash received from South32, which is to be contributed to the capital of the Mexican subsidiaries as required for exploration. Cash received from South32 is required to be used to further exploration at the Sierra Mojada Property.

 

The Company’s maximum exposure to loss at April 30, 2020 is $5,399,000, which includes the carrying value of the Mexican subsidiaries’ net assets excluding the payable to Silver Bull Resources, Inc.

v3.20.1
NET LOSS PER SHARE
6 Months Ended
Apr. 30, 2020
Earnings Per Share [Abstract]  
NET LOSS PER SHARE

NOTE 5 – NET LOSS PER SHARE

The Company had stock options and warrants outstanding at April 30, 2020 and 2019 that upon exercise were issuable into 32,152,305 and 53,515,230 shares of the Company’s common stock, respectively. They were not included in the calculation of loss per share because they would have been anti-dilutive.

v3.20.1
VALUE-ADDED TAX RECEIVABLE
6 Months Ended
Apr. 30, 2020
VALUE-ADDED TAX RECEIVABLE [Abstract]  
VALUE-ADDED TAX RECEIVABLE

NOTE 6 – VALUE-ADDED TAX RECEIVABLE

Value-added tax (“VAT”) receivable relates to VAT paid in Mexico. The Company estimates that net VAT of $215,961 will be received within 12 months of the balance sheet date. The allowance for uncollectible VAT was estimated by management based upon a number of factors, including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and estimated net recovery after commissions.

A summary of the changes in the allowance for uncollectible VAT for the six months ended April 30, 2020 is as follows:

Allowance for uncollectible VAT – October 31, 2019  $327,624 
Provision for VAT receivable allowance   15,641 
Foreign currency translation adjustment   (67,361)
Allowance for uncollectible VAT – April 30, 2020  $275,904 
v3.20.1
OFFICE AND MINING EQUIPMENT
6 Months Ended
Apr. 30, 2020
Property, Plant and Equipment [Abstract]  
OFFICE AND MINING EQUIPMENT

NOTE 7 – OFFICE AND MINING EQUIPMENT

The following is a summary of the Company’s office and mining equipment at April 30, 2020 and October 31, 2019, respectively:

   April 30,  October 31,
   2020  2019
       
Mining equipment  $396,152   $396,152 
Vehicles   92,873    92,873 
Buildings and structures   185,724    185,724 
Computer equipment and software   74,236    74,236 
Well equipment   39,637    39,637 
Office equipment   47,597    47,597 
    836,219    836,219 
Less:  Accumulated depreciation   (627,843)   (609,806)
Office and mining equipment, net  $208,376   $226,413 
v3.20.1
PROPERTY CONCESSIONS
6 Months Ended
Apr. 30, 2020
PROPERTY CONCESSIONS [Abstract]  
PROPERTY CONCESSIONS

NOTE 8 – PROPERTY CONCESSIONS

The following is a summary of the Company’s property concessions for the Sierra Mojada Property as at April 30, 2020 and October 31, 2019:

 Property concessions – April 30, 2020 and October 31, 2019   $5,019,927 
v3.20.1
GOODWILL
6 Months Ended
Apr. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL

NOTE 9 – GOODWILL

Goodwill represents the excess, at the date of acquisition, of the purchase price of the business acquired over the fair value of the net tangible and intangible assets acquired. On April 30, 2020, the Company elected to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Based on this assessment, management determined it is not more likely than not that the fair value of the reporting unit is less than its carrying amount.

 

The following is a summary of the Company’s goodwill balance as at April 30, 2020 and October 31, 2019:

 

 Goodwill – April 30, 2020 and October 31, 2019   $2,058,031 
v3.20.1
COMMON STOCK
6 Months Ended
Apr. 30, 2020
Stockholders' Equity Note [Abstract]  
COMMON STOCK

NOTE 10 – COMMON STOCK

No shares of common stock were issued during the six months ended April 30, 2020.

On March 6, 2019, 460,000 warrants to acquire 460,000 shares of common stock were exercised at an exercise price of $CDN 0.13 per share of common stock for aggregate gross proceeds of $44,560 ($CDN 59,800).

On February 21, 2019, 600,000 warrants to acquire 600,000 shares of common stock were exercised at an exercise price of $CDN 0.13 per share of common stock for aggregate gross proceeds of $59,109 ($CDN 78,000).

On January 30, 2019, 400,000 warrants to acquire 400,000 shares of common stock were exercised at an exercise price of $CDN 0.13 per share of common stock for aggregate gross proceeds of $39,418 ($CDN 52,000).

The Company incurred costs of $210 related to warrant exercises in the six months ended April 30, 2019.

v3.20.1
STOCK OPTIONS
6 Months Ended
Apr. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCK OPTIONS

NOTE 11 – STOCK OPTIONS

The Company has two stock option plans, the 2010 Stock Option and Stock Bonus Plan, as amended (the “2010 Plan”) and the 2019 Stock Option and Stock Bonus Plan (the “2019 Plan”). Under each of the 2010 Plan and the 2019 Plan, the lesser of (i) 30,000,000 shares or (ii) 10% of the total shares outstanding are reserved for issuance upon the exercise of options or the grant of stock bonuses. 

 

Options are typically granted with an exercise price equal to the closing market price of the Company’s stock at the date of grant, have a graded vesting schedule over two years and have a contractual term of five years.

 

No options were granted or exercised during the six months ended April 30, 2020 and April 30, 2019.

 

The following is a summary of stock option activity for the six months ended April 30, 2020:

 

Options  Shares  Weighted Average Exercise Price  Weighted Average Remaining Contractual Life (Years)  Aggregate Intrinsic Value
             
 Outstanding at October 31, 2019    16,350,000   $0.09    2.83   $46,448 
 Outstanding at April 30, 2020    16,350,000   $0.09    2.33   $14,648 
 Exercisable at April 30, 2020    13,833,333   $0.08    2.14   $14,648 

 

The Company recognized stock-based compensation costs for stock options of $37,450 and $122,131 for the six months ended April 30, 2020 and 2019, respectively. As of April 30, 2020, there was $24,968 of total unrecognized compensation expense, which is expected to be recognized over a weighted average period of 0.21 years.

Summarized information about stock options outstanding and exercisable at April 30, 2020 is as follows:

 Options Outstanding     Options Exercisable  
 Exercise Price     

Number

Outstanding

     Weighted Average Remaining Contractual Life (Years)    Weighted Average Exercise Price    Number Exercisable     

Weighted Average Exercise

Price

 
$0.05    4,075,000    0.82   $0.05    4,075,000   $0.05 
 0.09    11,625,000    2.87    0.09    9,108,333    0.09 
 0.15    350,000    2.81    0.15    350,000    0.15 
 0.18    300,000    1.26    0.18    300,000    0.18 
$  0.05 – 0.18    16,350,000    2.33   $0.09    13,833,333   $0.08 
                            

 

Prior to the adoption of ASU 2018-07 on November 1, 2019, stock options granted to consultants with a $CDN exercise price were classified as a stock option liability on the Company’s consolidated balance sheets upon vesting. On adoption of ASU 2018-07, the classification of stock options granted to consultants with a $CDN exercise price is only reassessed if the award is modified after it vests and the consultant is no longer providing services, rather than once performance is complete and the award vests. ASU 2018-07 requires liability-classified awards that have not been settled as of the adoption date to be remeasured based on their adoption-date fair value. As a result, the Company reclassified $4,803 from stock option liability to additional paid-in capital on adoption of ASU 2018-07 (Note 3). The following is a summary of the Company’s stock option liability at April 30, 2020 and October 31, 2019:

 

Stock option liability at October 31, 2019:     $4,803 
Reclassification to additional paid-in capital    (4,803)
 Stock option liability at April 30, 2020   $—   
v3.20.1
WARRANTS
6 Months Ended
Apr. 30, 2020
Warrants and Rights Note Disclosure [Abstract]  
WARRANTS

NOTE 12 WARRANTS

A summary of warrant activity for the six months ended April 30, 2020 is as follows:

 

Warrants  Shares  Weighted Average Exercise Price  Weighted Average Remaining Contractual Life (Years)  Aggregate Intrinsic Value
             
Outstanding and exercisable at October 31, 2019   15,802,305   $0.16    0.75   $—   
Outstanding and exercisable at April 30, 2020   15,802,305   $0.16    0.25   $—   

 

No warrants were issued or exercised during the six months ended April 30, 2020.

 

No warrants were issued during the six months ended April 30, 2019.

 

Warrants exercised during the six months ended April 30, 2019 are discussed in Note 10.

 

The warrants exercised during the six months ended April 30, 2019 had an intrinsic value of $12,126.

Summarized information about warrants outstanding and exercisable at April 30, 2020 is as follows:

 

 

 Warrants Outstanding and Exercisable
 Exercise Price     

Number

Outstanding

     Weighted Average Remaining Contractual Life (Years)    Weighted Average Exercise Price 
$0.14    1,231,374    0.25   $0.14 
 0.16    14,570,931    0.25    0.16 
$0.14 – 0.16    15,802,305    0.25   $0.16 

 

v3.20.1
FINANCIAL INSTRUMENTS
6 Months Ended
Apr. 30, 2020
Fair Value Disclosures [Abstract]  
FINANCIAL INSTRUMENTS

NOTE 13 – FINANCIAL INSTRUMENTS

Fair Value Measurements

All financial assets and financial liabilities are recorded at fair value on initial recognition. Transaction costs are expensed when they are incurred, unless they are directly attributable to the acquisition of financial assets or the assumption of liabilities carried at amortized cost, in which case the transaction costs adjust the carrying amount.

The three levels of the fair value hierarchy are as follows:

  Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
  Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
  Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

 

Under fair value accounting, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The Company’s financial instruments consist of cash and cash equivalents, accounts payable and stock option liability.

The carrying amounts of cash and cash equivalents and accounts payable approximate fair value at April 30, 2020 and October 31, 2019 due to the short maturities of these financial instruments.

Derivative liability

The Company classified warrants with a $CDN exercise price as a derivative liability, which was fair valued at each reporting period subsequent to the initial issuance as the functional currency of Silver Bull is the U.S. dollar. The Company used the Black-Scholes pricing model to determine the fair value of these warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, was based on the historical volatility adjusted to reflect the implicit discount to historical volatilities observed in the prices of traded warrants. The risk-free interest rate was based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants was assumed to be equivalent to their remaining contractual term. The dividend yield was expected to be none as the Company has not paid dividends nor does the Company anticipate paying a dividend in the foreseeable future. All changes in fair value were recorded in the interim Condensed Consolidated Statements of Operations and Comprehensive Loss each reporting period.

 

Credit Risk

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. To mitigate exposure to credit risk on financial assets, the Company has established policies to ensure liquidity of funds and ensure that counterparties demonstrate acceptable levels of creditworthiness.

The Company maintains its U.S. dollar and Canadian dollar cash and cash equivalents in bank and demand deposit accounts with major financial institutions with high credit standings. Cash deposits held in Canada are insured by the Canada Deposit Insurance Corporation (“CDIC”) for up to $CDN 100,000. Certain Canadian bank accounts held by the Company exceed these federally insured limits or are uninsured as they relate to U.S. dollar deposits held in Canadian financial institutions. As of April 30, 2020, and October 31, 2019, the Company’s cash and cash equivalent balances held in Canadian financial institutions included $1,295,087 and $1,296,115, respectively, which was not insured by the CDIC. The Company has not experienced any losses on such accounts, and management believes that using major financial institutions with high credit ratings mitigates the credit risk to cash and cash equivalents.

The Company also maintains cash in bank accounts in Mexico. These accounts are denominated in the local currency and are considered uninsured. As of April 30, 2020, and October 31, 2019, the U.S. dollar equivalent balance for these accounts was $17,162 and $62,024, respectively.

Interest Rate Risk

The Company holds substantially all of its cash and cash equivalents in bank and demand deposit accounts with major financial institutions. The interest rates received on these balances may fluctuate with changes in economic conditions. Based on the average cash and cash equivalent balances during the six months ended April 30, 2020, a 1% decrease in interest rates would have resulted in a reduction of approximately $5,618 in interest income for the period.

Foreign Currency Exchange Risk

The Company is not subject to any significant market risk related to foreign currency exchange rate fluctuations.

v3.20.1
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Apr. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 14 – COMMITMENTS AND CONTINGENCIES

Compliance with Environmental Regulations

The Company’s exploration activities are subject to laws and regulations controlling not only the exploration and mining of mineral properties but also the effect of such activities on the environment. Compliance with such laws and regulations may necessitate additional capital outlays or affect the economics of a project, and cause changes or delays in the Company’s activities.

Property Concessions in Mexico

To properly maintain property concessions in Mexico, the Company is required to pay a semi-annual fee to the Mexican government and complete annual assessment work.

Royalty

The Company has agreed to pay a 2% net smelter return royalty on certain property concessions within the Sierra Mojada Property based on the revenue generated from production. Total payments under this royalty are limited to $6.875 million (the “Royalty”). To date, no royalties have been paid.

Litigation and Claims

On May 20, 2014, Mineros Norteños filed an action in the Local First Civil Court in the District of Morelos, State of Chihuahua, Mexico, against the Company’s subsidiary, Minera Metalin, claiming that Minera Metalin breached an agreement regarding the development of the Sierra Mojada Property. Mineros Norteños sought payment of the Royalty, including interest at a rate of 6% per annum since August 30, 2004, even though no revenue has been produced from the applicable mining concessions. It also sought payment of wages to the cooperative’s members since August 30, 2004, even though none of the individuals were hired or performed work for Minera Metalin under this agreement and Minera Metalin did not commit to hiring them. On January 19, 2015, the case was moved to the Third District Court (of federal jurisdiction). On October 4, 2017, the court ruled that Mineros Norteños was time barred from bringing the case. On October 19, 2017, Mineros Norteños appealed this ruling. On July 31, 2019, the Federal Appeal Court held the original ruling. This ruling has been subsequently challenged by Mineros Norteños and on January 24, 2020, the Federal Circuit Court ruled that the Federal Appeal Court must consider additional factors in its ruling. In March 2020, the Federal Appeals Court held the original ruling after considering these additional factors. Mineros Norteños may challenge this ruling at the Federal Circuit Court. The Company and the Company’s Mexican legal counsel believe that it is unlikely that the court’s ruling will be overturned. The Company has not accrued any amounts in its interim condensed consolidated financial statements with respect to this claim.

From time to time, the Company is involved in other disputes, claims, proceedings and legal actions arising in the ordinary course of business. The Company intends to vigorously defend all claims against the Company and pursue its full legal rights in cases where the Company has been harmed. Although the ultimate outcome of these proceedings cannot be accurately predicted due to the inherent uncertainty of litigation, in the opinion of management, based upon current information, no other currently pending or overtly threatened proceeding is expected to have a material adverse effect on the Company’s business, financial condition or results of operations.

v3.20.1
SEGMENT INFORMATION
6 Months Ended
Apr. 30, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 15 – SEGMENT INFORMATION

The Company operates in a single reportable segment: the exploration of mineral property interests. The Company has mineral property interests in Sierra Mojada, Mexico.

Geographic information is approximately as follows:

   For the Three Months Ended  For the Six Months Ended
   April 30,  April 30,
   2020  2019  2020  2019
             
Mexico          (117,000)  $(377,000)  $(314,000)  $(846,000)
Canada       (361,000)   63,000    (732,000)   (470,000)
 Net Loss    (478,000)  $(314,000)  $(1,046,000)  $(1,316,000)
                     

 

The following table details the allocation of assets included in the accompanying balance sheet at April 30, 2020:

   Canada  Mexico  Total
Cash and cash equivalents  $1,317,000   $17,000   $1,334,000 
Value-added tax receivable, net   —      216,000    216,000 
Other receivables   5,000    5,000    10,000 
Prepaid expenses and deposits   54,000    100,000    154,000 
Office and mining equipment, net   —      208,000    208,000 
Property concessions   —      5,020,000    5,020,000 
Goodwill   —      2,058,000    2,058,000 
   $1,376,000   $7,624,000   $9,000,000 

 

The following table details the allocation of assets included in the accompanying balance sheet at October 31, 2019:

   Canada  Mexico  Total
Cash and cash equivalents  $1,370,000   $62,000   $1,432,000 
Value-added tax receivable, net   —      256,000    256,000 
Other receivables   4,000    5,000    9,000 
Prepaid expenses and deposits   103,000    102,000    205,000 
Office and mining equipment, net   —      226,000    226,000 
Property concessions   —      5,020,000    5,020,000 
Goodwill   —      2,058,000    2,058,000 
   $1,477,000   $7,729,000   $9,206,000 

 

The Company has significant assets in Coahuila, Mexico. Although Mexico is generally considered economically stable, it is always possible that unanticipated events in Mexico could disrupt the Company’s operations. The Mexican government does not require foreign entities to maintain cash reserves in Mexico.

 

v3.20.1
SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Apr. 30, 2020
Accounting Policies [Abstract]  
Recent Accounting Pronouncements Adopted in the Six-Month Period Ended April 30, 2020

Recent Accounting Pronouncements Adopted in the Six-Month Period Ended April 30, 2020

On November 1, 2019, the Company adopted the Financial Accounting Standards Board’s (the “FASB’s”) Accounting Standards Update (“ASU”) 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”, which became effective for fiscal years beginning after December 15, 2018. ASU 2018-07 simplifies the accounting for nonemployee share-based payments, aligning it more closely with the accounting for employee awards. Under the adoption provisions, equity-classified awards for which a measurement date had already been established as of the adoption date, including the Company’s Earn-In Option Agreement (Note 4), are unaffected by ASU 2018-07. As a result of this adoption, the Company reclassified $4,803 from stock option liability to additional paid-in capital (Note 11).

 

On November 1, 2019, the Company adopted the FASB’s ASU 2016-02, “Leases,” (Topic 842), together with subsequent amendments, which became effective for fiscal years beginning after December 15, 2018. The new standard requires a lessee to recognize on its balance sheet, a liability to make lease payments (the lease liability) and the right-of-use (“ROU”) asset representing the right to the underlying asset for the lease term and allows companies to elect to apply the standard at the effective date. The Company elected the package of practical expedients permitted under the transition guidance, which applies to expired or existing leases and allows the Company not to reassess whether a contract contains a lease, the lease classification, and any initial direct costs incurred.

 

The Company also elected a number of optional practical expedients including the following:

 

  • the short-term lease recognition exemption whereby ROU assets and lease liabilities will not be recognized for leasing arrangements with terms less than one year;
  • the land easements practical expedient whereby existing land easements are not reassessed under the new standard;
  • the hindsight practical expedient when determining lease term at transition; and
  • the practical expedient not to apply lease accounting to the intangible right to explore for those natural resources, and rights to use the land in which those natural resources are contained.

The adoption of this update did not have an impact on the Company’s financial position, results of operations or cash flows and disclosures.

Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its financial position, results of operations or cash flows and disclosures.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the SEC did not or are not expected to have a material impact on the Company’s present or future consolidated financial statements.

v3.20.1
EARN-IN OPTION AGREEMENT (Tables)
6 Months Ended
Apr. 30, 2020
Other Commitments [Abstract]  
Schedule of Consolidated Assets and Liabilities of Subsidiaries

The combined approximate carrying amount of the assets and liabilities of Contratistas and Minera Metalin (consolidated with their wholly-owned subsidiary) are as follows at April 30, 2020:

 

 

Assets:  Mexico
Cash and cash equivalents  $17,000 
Value-added tax receivable, net   216,000 
Other receivables   4,000 
Income tax receivable   1,000 
Prepaid expenses and deposits   100,000 
Office and mining equipment, net   208,000 
Property concessions   5,020,000 
Total assets  $5,566,000 

 

 

Liabilities:   
Accounts payable  $51,000 
Accrued liabilities and expenses   116,000 
Payable to Silver Bull Resources, Inc. to be converted to equity upon exercise of the Option   3,348,000 
Total liabilities  $3,515,000 
      
Net advances and investment in the Company’s Mexican subsidiaries  $2,051,000 
v3.20.1
VALUE-ADDED TAX RECEIVABLE (Tables)
6 Months Ended
Apr. 30, 2020
VALUE-ADDED TAX RECEIVABLE [Abstract]  
Summary of the Changes in the Allowance for Uncollectible Taxes

A summary of the changes in the allowance for uncollectible VAT for the six months ended April 30, 2020 is as follows:

Allowance for uncollectible VAT – October 31, 2019  $327,624 
Provision for VAT receivable allowance   15,641 
Foreign currency translation adjustment   (67,361)
Allowance for uncollectible VAT – April 30, 2020  $275,904 
v3.20.1
OFFICE AND MINING EQUIPMENT (Tables)
6 Months Ended
Apr. 30, 2020
Property, Plant and Equipment [Abstract]  
Summary of Office and Mining Equipment

The following is a summary of the Company’s office and mining equipment at April 30, 2020 and October 31, 2019, respectively:

   April 30,  October 31,
   2020  2019
       
Mining equipment  $396,152   $396,152 
Vehicles   92,873    92,873 
Buildings and structures   185,724    185,724 
Computer equipment and software   74,236    74,236 
Well equipment   39,637    39,637 
Office equipment   47,597    47,597 
    836,219    836,219 
Less:  Accumulated depreciation   (627,843)   (609,806)
Office and mining equipment, net  $208,376   $226,413 
v3.20.1
PROPERTY CONCESSIONS (Tables)
6 Months Ended
Apr. 30, 2020
PROPERTY CONCESSIONS [Abstract]  
Summary of Property Concessions

The following is a summary of the Company’s property concessions for the Sierra Mojada Property as at April 30, 2020 and October 31, 2019:

 Property concessions – April 30, 2020 and October 31, 2019   $5,019,927 
v3.20.1
GOODWILL (Tables)
6 Months Ended
Apr. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of the Goodwill Balance

The following is a summary of the Company’s goodwill balance as at April 30, 2020 and October 31, 2019:

 

 Goodwill – April 30, 2020 and October 31, 2019   $2,058,031 
v3.20.1
STOCK OPTIONS (Tables)
6 Months Ended
Apr. 30, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Stock Option Activity

The following is a summary of stock option activity for the six months ended April 30, 2020:

 

Options  Shares  Weighted Average Exercise Price  Weighted Average Remaining Contractual Life (Years)  Aggregate Intrinsic Value
             
 Outstanding at October 31, 2019    16,350,000   $0.09    2.83   $46,448 
 Outstanding at April 30, 2020    16,350,000   $0.09    2.33   $14,648 
 Exercisable at April 30, 2020    13,833,333   $0.08    2.14   $14,648 
Schedule of Stock Options Outstanding and Exercisable by Exercise Price Range

Summarized information about stock options outstanding and exercisable at April 30, 2020 is as follows:

 Options Outstanding     Options Exercisable  
 Exercise Price     

Number

Outstanding

     Weighted Average Remaining Contractual Life (Years)    Weighted Average Exercise Price    Number Exercisable     

Weighted Average Exercise

Price

 
$0.05    4,075,000    0.82   $0.05    4,075,000   $0.05 
 0.09    11,625,000    2.87    0.09    9,108,333    0.09 
 0.15    350,000    2.81    0.15    350,000    0.15 
 0.18    300,000    1.26    0.18    300,000    0.18 
$  0.05 – 0.18    16,350,000    2.33   $0.09    13,833,333   $0.08 
Summary of Stock Option Liability

The following is a summary of the Company’s stock option liability at April 30, 2020 and October 31, 2019:

 

Stock option liability at October 31, 2019:     $4,803 
Reclassification to additional paid-in capital    (4,803)
 Stock option liability at April 30, 2020   $—   
v3.20.1
WARRANTS (Tables)
6 Months Ended
Apr. 30, 2020
Warrants and Rights Note Disclosure [Abstract]  
Summary of Warrants Activity

A summary of warrant activity for the six months ended April 30, 2020 is as follows:

 

Warrants  Shares  Weighted Average Exercise Price  Weighted Average Remaining Contractual Life (Years)  Aggregate Intrinsic Value
             
Outstanding and exercisable at October 31, 2019   15,802,305   $0.16    0.75   $—   
Outstanding and exercisable at April 30, 2020   15,802,305   $0.16    0.25   $—   
Summary of Warrants Outstanding and Exercisable by Price Range

Summarized information about warrants outstanding and exercisable at April 30, 2020 is as follows:

 

 

 Warrants Outstanding and Exercisable
 Exercise Price     

Number

Outstanding

     Weighted Average Remaining Contractual Life (Years)    Weighted Average Exercise Price 
$0.14    1,231,374    0.25   $0.14 
 0.16    14,570,931    0.25    0.16 
$0.14 – 0.16    15,802,305    0.25   $0.16 
v3.20.1
SEGMENT INFORMATION (Tables)
6 Months Ended
Apr. 30, 2020
Segment Reporting [Abstract]  
Schedule of Net Income (Loss) by Segment

Geographic information is approximately as follows:

   For the Three Months Ended  For the Six Months Ended
   April 30,  April 30,
   2020  2019  2020  2019
             
Mexico          (117,000)  $(377,000)  $(314,000)  $(846,000)
Canada       (361,000)   63,000    (732,000)   (470,000)
 Net Loss    (478,000)  $(314,000)  $(1,046,000)  $(1,316,000)
Schedule of the Allocation of Assets by Segment

The following table details the allocation of assets included in the accompanying balance sheet at April 30, 2020:

   Canada  Mexico  Total
Cash and cash equivalents  $1,317,000   $17,000   $1,334,000 
Value-added tax receivable, net   —      216,000    216,000 
Other receivables   5,000    5,000    10,000 
Prepaid expenses and deposits   54,000    100,000    154,000 
Office and mining equipment, net   —      208,000    208,000 
Property concessions   —      5,020,000    5,020,000 
Goodwill   —      2,058,000    2,058,000 
   $1,376,000   $7,624,000   $9,000,000 

 

The following table details the allocation of assets included in the accompanying balance sheet at October 31, 2019:

   Canada  Mexico  Total
Cash and cash equivalents  $1,370,000   $62,000   $1,432,000 
Value-added tax receivable, net   —      256,000    256,000 
Other receivables   4,000    5,000    9,000 
Prepaid expenses and deposits   103,000    102,000    205,000 
Office and mining equipment, net   —      226,000    226,000 
Property concessions   —      5,020,000    5,020,000 
Goodwill   —      2,058,000    2,058,000 
   $1,477,000   $7,729,000   $9,206,000 
v3.20.1
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN (Narrative) (Details) - USD ($)
Apr. 30, 2020
Oct. 31, 2019
Apr. 30, 2019
Oct. 31, 2018
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN [Abstract]        
Accumulated deficit $ 130,839,993 $ 129,793,599    
Cash and cash equivalents $ 1,334,444 $ 1,431,634 $ 3,487,394 $ 3,025,839
v3.20.1
SIGNIFICANT ACCOUNTING POLICIES (Details)
6 Months Ended
Apr. 30, 2020
USD ($)
Accounting Standards Update 2018-07 [Member]  
Amount reclassified from stock option liability to additional paid-in capital $ 4,803
v3.20.1
EARN-IN OPTION AGREEMENT (Narrative) (Details) - USD ($)
1 Months Ended 6 Months Ended
Jun. 01, 2018
Jun. 30, 2020
Apr. 30, 2020
Apr. 30, 2019
Property concessions funding     $ 1,042,538 $ 2,221,380
South32 Limited [Member]        
Option period 4 years      
Percentage of owned 100.00%      
Payment received       $ 6,000,000
Cash to be contributed to the capital of the Mexican subsidiaries as required for exploration     49,000  
Mexican subsidiaries maximum loss exposure     5,399,000  
South32 Limited [Member] | 1 year [Member]        
Contribution of minimum exploration fund $ 3,000,000      
Property concessions funding 3,144,163      
South32 Limited [Member] | 2 year [Member]        
Contribution of minimum exploration fund 6,000,000      
Property concessions funding     $ 1,361,968  
South32 Limited [Member] | 2 year [Member] | Subsequent Event [Member]        
Property concessions funding   $ 52,734    
South32 Limited [Member] | 3 year [Member]        
Contribution of minimum exploration fund 8,000,000      
South32 Limited [Member] | 4 year [Member]        
Contribution of minimum exploration fund 10,000,000      
Minera Metalin [Member]        
Contribution to acquired shares $ 100,000,000      
Percentage of owned 70.00%      
v3.20.1
EARN-IN OPTION AGREEMENT (Schedule of Consolidated Assets and Liabilities of Subsidiaries) (Details) - USD ($)
Apr. 30, 2020
Jan. 31, 2020
Oct. 31, 2019
Apr. 30, 2019
Jan. 31, 2019
Oct. 31, 2018
Assets:            
Cash and cash equivalents $ 1,334,444   $ 1,431,634 $ 3,487,394   $ 3,025,839
Value-added tax receivable, net 215,961   255,847      
Other receivables 8,959   8,543      
Income tax receivable 595   784      
Prepaid expenses and deposits 153,471   204,713      
Office and mining equipment, net 208,376   226,413      
Property concessions 5,019,927   5,019,927      
TOTAL ASSETS 8,999,764   9,205,892      
Liabilities:            
Accounts payable 151,519   328,943      
Accrued liabilities and expenses 242,473   305,446      
Net advances and investment in the Company's Mexican subsidiaries (8,603,272) $ (8,915,132) $ (8,564,875) $ (10,784,471) $ (9,750,608) $ (9,601,668)
Minera Metalin and Contratistas [Member]            
Assets:            
Cash and cash equivalents 17,000          
Value-added tax receivable, net 216,000          
Other receivables 4,000          
Income tax receivable 1,000          
Prepaid expenses and deposits 100,000          
Office and mining equipment, net 208,000          
Property concessions 5,020,000          
TOTAL ASSETS 5,566,000          
Liabilities:            
Accounts payable 51,000          
Accrued liabilities and expenses 116,000          
Payable to Silver Bull Resources, Inc. to be converted to equity upon exercise of the Option 3,348,000          
Total liabilities 3,515,000          
Net advances and investment in the Company's Mexican subsidiaries $ 2,051,000          
v3.20.1
NET LOSS PER SHARE (Details) - shares
6 Months Ended
Apr. 30, 2020
Apr. 30, 2019
Earnings Per Share [Abstract]    
Anti-dilutive shares, stock options and warrants 32,152,305 53,515,230
v3.20.1
VALUE-ADDED TAX RECEIVABLE (Narrative) (Details) - USD ($)
Apr. 30, 2020
Oct. 31, 2019
VALUE-ADDED TAX RECEIVABLE [Abstract]    
Value-added tax receivable, current $ 215,961 $ 255,847
v3.20.1
VALUE-ADDED TAX RECEIVABLE (Summary of the Changes in the Allowance for Uncollectible Taxes) (Details)
6 Months Ended
Apr. 30, 2020
USD ($)
VALUE-ADDED TAX RECEIVABLE [Abstract]  
Allowance for uncollectible VAT - October 31, 2019 $ 327,624
Provision for VAT receivable allowance 15,641
Foreign currency translation adjustment (67,361)
Allowance for uncollectible VAT - April 30, 2020 $ 275,904
v3.20.1
OFFICE AND MINING EQUIPMENT (Details) - USD ($)
Apr. 30, 2020
Oct. 31, 2019
Property, Plant and Equipment [Line Items]    
Office and mining equipment, gross $ 836,219 $ 836,219
Less: Accumulated depreciation (627,843) (609,806)
Office and mining equipment, net 208,376 226,413
Mining equipment [Member]    
Property, Plant and Equipment [Line Items]    
Office and mining equipment, gross 396,152 396,152
Vehicles [Member]    
Property, Plant and Equipment [Line Items]    
Office and mining equipment, gross 92,873 92,873
Building and structures [Member]    
Property, Plant and Equipment [Line Items]    
Office and mining equipment, gross 185,724 185,724
Computer equipment and software [Member]    
Property, Plant and Equipment [Line Items]    
Office and mining equipment, gross 74,236 74,236
Well equipment [Member]    
Property, Plant and Equipment [Line Items]    
Office and mining equipment, gross 39,637 39,637
Office equipment [Member]    
Property, Plant and Equipment [Line Items]    
Office and mining equipment, gross $ 47,597 $ 47,597
v3.20.1
PROPERTY CONCESSIONS (Details) - USD ($)
Apr. 30, 2020
Oct. 31, 2019
PROPERTY CONCESSIONS [Abstract]    
Property concessions - April 30, 2020 and October 31, 2019 $ 5,019,927 $ 5,019,927
v3.20.1
GOODWILL (Summary of the Goodwill Balance) (Details) - USD ($)
Apr. 30, 2020
Oct. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill - April 30, 2020 and October 31, 2019 $ 2,058,031 $ 2,058,031
v3.20.1
COMMON STOCK (Details)
1 Months Ended 6 Months Ended
Mar. 06, 2019
USD ($)
shares
Mar. 06, 2019
CAD ($)
$ / shares
shares
Feb. 21, 2019
USD ($)
shares
Feb. 21, 2019
CAD ($)
$ / shares
shares
Jan. 30, 2019
USD ($)
shares
Jan. 30, 2019
CAD ($)
$ / shares
shares
Apr. 30, 2019
USD ($)
Class of Stock [Line Items]              
Warrant issuance cost             $ 210
$CDN 0.13 Unit [Member]              
Class of Stock [Line Items]              
Stock issued during period, shares | shares 460,000 460,000 600,000 600,000 400,000 400,000  
Proceeds from issuance of common stock $ 44,560   $ 59,109   $ 39,418    
Warrant Acquired | shares   460,000   600,000   400,000  
$CDN 0.13 Unit [Member] | CDN [Member]              
Class of Stock [Line Items]              
Equity issuance, price per share | $ / shares   $ 0.13   $ 0.13   $ 0.13  
Proceeds from issuance of common stock   $ 59,800   $ 78,000   $ 52,000  
v3.20.1
STOCK OPTIONS (Narrative) (Details) - USD ($)
6 Months Ended
Apr. 30, 2020
Apr. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation costs recognized during the period $ 37,450 $ 122,131
Total unrecognized compensation costs related to non-vested share based compensation arrangements granted under qualified stock option plans $ 24,968  
Weighted-average period for remaining compensation costs to be recognized 2 months 16 days  
2019 Plan [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
The number of shares authorized under the plan 30,000,000  
Shares outstanding reserved for issuance upon the exercise of options or the grant of stock bonuses percentage 10.00%  
Employee Stock Option [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period for plan 2 years  
Contractual term for options 5 years  
v3.20.1
STOCK OPTIONS (Summary of Stock Option Activity) (Details) - USD ($)
6 Months Ended 12 Months Ended
Apr. 30, 2020
Oct. 31, 2019
Shares    
Outstanding 16,350,000 16,350,000
Exercisable at April 30, 2020 13,833,333  
Weighted Average Exercise Price    
Outstanding $ 0.09 $ 0.09
Exercisable at April 30, 2020 $ 0.08  
Weighted Average Remaining Contractual Life (Years), Outstanding 2 years 3 months 29 days 2 years 9 months 29 days
Weighted Average Remaining Contractual Life (Years), Exercisable at April 30, 2020 2 years 1 month 20 days  
Aggregate intrinsic value, Outstanding $ 14,648 $ 46,448
Aggregate intrinsic value, Exercisable at April 30, 2020 $ 14,648  
v3.20.1
STOCK OPTIONS (Summarized Information of Stock Options Outstanding and Exercisable) (Details)
6 Months Ended
Apr. 30, 2020
$ / shares
shares
0.05 [Member]  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Exercise Price $ 0.05
Number of options outstanding | shares 4,075,000
Weighted Average Remaining Contractual Life (Years) 9 months 25 days
Weighted Average Exercise Price $ 0.05
Number Exercisable | shares 4,075,000
Options Exercisable - Weighted Average Exercise Price $ 0.05
0.09 [Member]  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Exercise Price $ 0.09
Number of options outstanding | shares 11,625,000
Weighted Average Remaining Contractual Life (Years) 2 years 10 months 14 days
Weighted Average Exercise Price $ 0.09
Number Exercisable | shares 9,108,333
Options Exercisable - Weighted Average Exercise Price $ 0.09
0.15 [Member]  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Exercise Price $ 0.15
Number of options outstanding | shares 350,000
Weighted Average Remaining Contractual Life (Years) 2 years 9 months 22 days
Weighted Average Exercise Price $ 0.15
Number Exercisable | shares 350,000
Options Exercisable - Weighted Average Exercise Price $ 0.15
0.18 [Member]  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Exercise Price $ 0.18
Number of options outstanding | shares 300,000
Weighted Average Remaining Contractual Life (Years) 1 year 3 months 4 days
Weighted Average Exercise Price $ 0.18
Number Exercisable | shares 300,000
Options Exercisable - Weighted Average Exercise Price $ 0.18
0.05 - 0.18 [Member]  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Minimum exercise price 0.05
Maximum exercise price $ 0.18
Number of options outstanding | shares 16,350,000
Weighted Average Remaining Contractual Life (Years) 2 years 3 months 29 days
Weighted Average Exercise Price $ 0.09
Number Exercisable | shares 13,833,333
Options Exercisable - Weighted Average Exercise Price $ 0.08
v3.20.1
STOCK OPTIONS (Summary of Stock Option Liability) (Details)
6 Months Ended
Apr. 30, 2020
USD ($)
Share-based Payment Arrangement [Abstract]  
Stock option liability at October 31, 2019 $ 4,803
Reclassification to additional paid-in capital (4,803)
Stock option liability at April 30, 2020
v3.20.1
WARRANTS (Narrative) (Details)
6 Months Ended
Apr. 30, 2019
USD ($)
Warrant [Member]  
Class of Warrant or Right [Line Items]  
Warrant Intrinsic value of Exercise $ 12,126
v3.20.1
WARRANTS (Summary of Warrant Activity) (Details) - USD ($)
6 Months Ended 12 Months Ended
Apr. 30, 2020
Oct. 31, 2019
Weighted Average Exercise Price    
Weighted Average Remaining Contractual Life (Years), Outstanding and Exercisable 2 years 1 month 20 days  
Warrant [Member]    
Shares    
Outstanding and exercisable 15,802,305 15,802,305
Weighted Average Exercise Price    
Outstanding and exercisable $ 0.16 $ 0.16
Weighted Average Remaining Contractual Life (Years), Outstanding and Exercisable 2 months 30 days 9 months
Aggregate intrinsic value
v3.20.1
WARRANTS (Summary of Warrants Outstanding and Exercisable by Price Range) (Details)
6 Months Ended
Apr. 30, 2020
$ / shares
shares
Class of Warrant or Right [Line Items]  
Range of exercise price, lower limit $ 0.14
Range of exercise price, upper limit $ 0.16
Warrants and Exercisable outstanding | shares 15,802,305
Weighted Remaining Average Contractual Life (Years) 2 months 30 days
Weighted average exercise price, outstanding $ 0.16
Warrant Exercise Price Range One [Member]  
Class of Warrant or Right [Line Items]  
Exercise price $ 0.14
Warrants and Exercisable outstanding | shares 1,231,374
Weighted Remaining Average Contractual Life (Years) 2 months 30 days
Weighted average exercise price, outstanding $ 0.14
Warrant Exercise Price Range Two [Member]  
Class of Warrant or Right [Line Items]  
Exercise price $ 0.16
Warrants and Exercisable outstanding | shares 14,570,931
Weighted Remaining Average Contractual Life (Years) 2 months 30 days
Weighted average exercise price, outstanding $ 0.16
v3.20.1
FINANCIAL INSTRUMENTS (Narrative) (Details)
6 Months Ended
Apr. 30, 2020
USD ($)
Apr. 30, 2020
CAD ($)
Oct. 31, 2019
USD ($)
Cash balance insured by CDIC per financial institution   $ 100,000  
Value of total cash accounts held in Mexico and Gabon $ 17,162   $ 62,024
Effect of a 1% decrease in interest rates on interest income 5,618    
CDN [Member]      
Cash balances not insured $ 1,295,087   $ 1,296,115
v3.20.1
COMMITMENTS AND CONTINGENCIES (Royalty) (Details) - Sierra Mojada Property Concession [Member]
Apr. 30, 2020
USD ($)
Property Concessions By Location Of Concessions [Line Items]  
Percentage rate of net smelter return royalties 2.00%
The maximum net smelter return royalties that can be paid $ 6,875,000
v3.20.1
COMMITMENTS AND CONTINGENCIES (Litigation and Claims) (Details)
6 Months Ended
Apr. 30, 2020
Litigation and Claims:  
Interest rate sought on the Royalty 6.00%
v3.20.1
SEGMENT INFORMATION (Schedule of Segment Net Loss) (Details) - USD ($)
3 Months Ended 6 Months Ended
Apr. 30, 2020
Apr. 30, 2019
Apr. 30, 2020
Apr. 30, 2019
Segment Reporting Information [Line Items]        
Net Loss $ (477,951) $ (314,359) $ (1,046,394) $ (1,315,710)
Mexico [Member]        
Segment Reporting Information [Line Items]        
Net Loss (117,000) (377,000) (314,000) (846,000)
Canada [Member]        
Segment Reporting Information [Line Items]        
Net Loss $ (361,000) $ 63,000 $ (732,000) $ (470,000)
v3.20.1
SEGMENT INFORMATION (Schedule of Segment Assets) (Details) - USD ($)
Apr. 30, 2020
Oct. 31, 2019
Segment Reporting Information [Line Items]    
Cash and cash equivalents $ 1,334,000 $ 1,432,000
Value-added tax receivable, net 215,961 255,847
Other receivables 8,959 8,543
Prepaid expenses and deposits 153,471 204,713
Office and mining equipment, net 208,376 226,413
Property concessions 5,019,927 5,019,927
Goodwill 2,058,031 2,058,031
TOTAL ASSETS 8,999,764 9,205,892
Canada [Member]    
Segment Reporting Information [Line Items]    
Cash and cash equivalents 1,317,000 1,370,000
Value-added tax receivable, net
Other receivables 5,000 4,000
Prepaid expenses and deposits 54,000 103,000
Office and mining equipment, net
Property concessions
Goodwill
TOTAL ASSETS 1,376,000 1,477,000
Mexico [Member]    
Segment Reporting Information [Line Items]    
Cash and cash equivalents 17,000 62,000
Value-added tax receivable, net 216,000 256,000
Other receivables 5,000 5,000
Prepaid expenses and deposits 100,000 102,000
Office and mining equipment, net 208,000 226,000
Property concessions 5,020,000 5,020,000
Goodwill 2,058,000 2,058,000
TOTAL ASSETS $ 7,624,000 $ 7,729,000