Entity information:
7.
INCOME TAXES
 
A reconciliation of income taxes at statutory rates with the reported taxes is as follows for the years ended December 31, 2017 and 2016:
 
 
 
December 31,
2017
 
December 31,
2016
 
Loss before income taxes
 
$
(6,432,057)
 
$
(7,190,628)
 
Statutory Canadian corporate tax rate
 
 
26.00
%
 
25.00
%
 
 
 
 
 
 
 
 
Expected income tax (recovery)
 
$
(1,672,335)
 
$
(1,797,657)
 
Share-based payments
 
 
115,324
 
 
27,132
 
Difference in tax rates in other jurisdictions
 
 
(805,662)
 
 
(1,073,449)
 
Effect of change in tax rate
 
 
26,455,632
 
 
-
 
Derecognition of derivative liability
 
 
(1,824,065)
 
 
-
 
Share issue cost
 
 
(14,540)
 
 
173,684
 
Adjustment to prior years provision versus statutory tax returns
 
 
(1,509,364)
 
 
-
 
Expiry of donations
 
 
64,554
 
 
-
 
Expiry of losses
 
 
20,280
 
 
-
 
Change in unrecognized deductible temporary differences
 
 
(20,829,824)
 
 
2,670,290
 
Total income tax expense (recovery)
 
$
-
 
$
-
 
 
The significant components of the Company’s deferred tax assets are as follows:
 
 
 
December 31,
2017
 
December 31,
2016
 
Deferred income tax assets (liabilities):
 
 
 
 
 
 
 
Mineral properties
 
$
23,391,666
 
$
57,243,323
 
Derivative liability
 
 
-
 
 
(1,824,065)
 
Donations
 
 
-
 
 
92,160
 
Property and equipment
 
 
6,448
 
 
9,828
 
Share issue costs
 
 
36,483
 
 
31,830
 
Marketable securities
 
 
54,073
 
 
45,754
 
Losses available for future periods
 
 
47,278,286
 
 
35,997,950
 
 
 
 
70,766,956
 
 
91,596,780
 
Valuation allowance
 
 
(70,766,956)
 
 
(91,596,780)
 
Net deferred tax asset
 
$
-
 
$
-
 
 
At December 31, 2017, the Company has available net operating losses for Canadian income tax purposes of approximately $20,576,000 and net operating losses for US income tax purposes of approximately $137,245,000 available for carry-forward to reduce future years’ taxable income, if not utilized, expiring as follows:
 
 
 
Canada
 
United States
 
 
 
 
 
 
 
 
 
2037
 
$
1,394,000
 
$
8,892,000
 
2036
 
 
1,383,000
 
 
8,798,000
 
2035
 
 
406,000
 
 
10,703,000
 
2034
 
 
1,694,000
 
 
12,587,000
 
2033
 
 
1,827,000
 
 
14,208,000
 
2032
 
 
2,629,000
 
 
16,798,000
 
2031
 
 
4,180,000
 
 
40,825,000
 
2030
 
 
2,829,000
 
 
18,765,000
 
2029
 
 
2,074,000
 
 
2,973,000
 
2028
 
 
1,253,000
 
 
1,412,000
 
2027
 
 
907,000
 
 
1,284,000
 
 
 
 
20,576,000
 
 
137,245,000
 
   
The Company also has available mineral resource expenses that are related to the Company’s exploration activities in the United States of approximately $132,150,000 which may be deductible for U.S. 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.