XML 23 R11.htm IDEA: XBRL DOCUMENT v3.7.0.1
Note 5 - Investment in Galore Greek
6 Months Ended
May 31, 2017
Galore Creek [Member]  
Notes to Financial Statements  
Equity Method Investments and Joint Ventures Disclosure [Text Block]
NOTE
5
– INVESTMENT IN GALORE CREEK
 
The Galore Creek project is owned by the Galore Creek Partnership (GCP), a partnership in which Teck and a wholly owned subsidiary of NOVAGOLD each own a
50%
interest. GCP has a management committee comprised of
four
representatives, with
two
representatives selected by Teck and
two
representatives appointed by the Company. All significant decisions related to GCP require the approval of at least a majority of the GCP management committee representatives.
 
GCP prepares its financial statements under International Financial Reporting Standards, as issued by the IASB, and presents its financial statements in Canadian dollars. In accounting for its investment in GCP, the Company converts and presents reported amounts in accordance with US GAAP and in U.S. dollars.
 
Changes in the Company’s investment in GCP are summarized as follows:
 
    Three months ended May 31,   Six months ended May 31,
    2017   2016   2017   2016
Balance – beginning of period   $
244,174
    $
239,732
    $
241,404
    $
242,906
 
Share of losses:                                
Mineral property expenditures    
(30
)    
(74
)    
(41
)    
(133
)
Care and maintenance expense    
(195
)    
(246
)    
(334
)    
(381
)
     
(225
)    
(320
)    
(375
)    
(514
)
Funding    
545
     
244
     
775
     
459
 
Foreign currency translation    
(3,963
)    
7,696
     
(1,273
)    
4,501
 
Balance – end of period   $
240,531
    $
247,352
    $
240,531
    $
247,352
 
 
The following amounts represent the Company’s
50%
share of the assets and liabilities of GCP presented in U.S. dollars and in accordance with US GAAP. As a result of recording the Company’s investment at fair value in
June 2011,
the carrying value of the Company’s
50%
interest is higher than
50%
of the book value of GCP. Therefore, the Company’s investment does
not
equal
50%
of the net assets recorded by GCP:
 
    At
May 31,
2017
  At
November 30,
2016
Current assets: Cash, prepaid expenses and other receivables   $
701
    $
170
 
Non-current assets: Mineral property    
216,290
     
217
,295
 
Current liabilities: Accounts payable and accrued liabilities    
(247
)    
(112
)
Non-current liabilities: Reclamation obligation    
(7,222
)    
(7,260
)
Net assets   $
209,522
    $
210,093