EQUITY-ACCOUNTED INVESTMENT

12 Months Ended

Jul. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 8: EQUITY-ACCOUNTED INVESTMENT

In July 2017, we acquired 2,000,000 common shares of URC by paying $151,676 in cash through a private placement. In addition, one officer of the Company was appointed as a member of the board of directors of URC.

At July 31, 2018, we owned an 11.3% interest and certain officers of the Company collectively owned an additional 9% (July 31, 2017: 22.2% and 13.3%, respectively) interest in URC. As a result, our ability to exercise significant influence over URC’s operating and financial policies continued to exist as at July 31, 2018, and in accordance with ASC 323: Investments – Equity Method and Joint Ventures, the investment in URC is accounted for as an equity investment. The reduction in our Company’s ownership percentage of URC from 22.2% at July 31, 2017 to 11.3% at July 31, 2018 has resulted in a gain on ownership interest dilution totaling $394,656 on our consolidated financial statements.

During Fiscal 2018, the change in fair value of the investment in URC is summarized as below:

Balance, July 31, 2017	$	151,676
Share of gain from URC		29,001
Gain on ownership interest dilution		394,656
Share of other comprehensive income from URC		118,169
Balance, July 31, 2018	$	693,502

Subsequent to July 31, 2018, we entered into a royalty purchase agreement (the "Royalty Purchase Agreement") with URC in connection with the proposed purchase by URC from the Company of a one percent (1%) net smelter return royalty (the "Royalties") for uranium only (the "Royalties Sale") on the Company's Slick Rock Project, the Workman Creek Project and the Anderson Project,

Subject to the terms and conditions of the Royalty Purchase Agreement, including the completion of certain customary conditions precedent prior to the closing of the Royalties Sale, the Company has agreed to sell the Royalties to URC for 12,000,000 common shares of URC.