Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.19.2
Subsequent Events
3 Months Ended
Jul. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

NOTE 11 — SUBSEQUENT EVENTS

 

Between August 1, 2019 and September 12, 2019, the Company issued an aggregate of 387,718 shares of the Company’s common stock in exchange for the conversion of total 221 shares of the Company’s Series F Preferred Stock. As of September 12, 2019, 855 of the 1,250 shares of Series F Preferred Stock that were originally issued had been converted.

 

On September 10, 2019, the Company, 2637262 Ontario Inc., a corporation incorporated under the laws of the Providence of Ontario (“NumberCo”), and all of the shareholders of NumberCo (the “NumberCo Shareholders”), entered into a Share Exchange Agreement (the “Share Exchange Agreement”), pursuant to which, among other things, the Company agreed to issue to the NumberCo Shareholders 2,000,000 shares of the Company’s common stock in exchange for all of the issued and outstanding shares of NumberCo, with NumberCo becoming a wholly owned subsidiary of the Company.

 

NumberCo, through its wholly owned subsidiary Orevada Metals Inc. (“Orevada”), is party to an Exploration Earn-In Agreement (the “Agreement”) which provides Orevada an exclusive right and option to earn-in and acquire up to 50% undivided interest in a property located in Eureka County, Nevada by completing $4.5 million in exploration and development expenditures over a seven-year period (“Initial Earn-in”) and payment to the grantor of $250,000. The Company may also elect, within 60 days of making the $250,000 payment, to increase its interest by an additional 20% (total interest of 70%) by producing a feasibility study by the end of the ninth year of the Option Agreement. 

 

The Company is currently analyzing the accounting literature under ASC 805-10-55-4 as well as ASU 2017-01 to determine the proper recording of this acquisition as either a business acquisition or asset acquisition. Upon this determination, the Company will ensure that any regulatory filings, should any be necessary, be completed.