ENTREE GOLD INC, 40-F filed on 3/10/2017
Annual Report (foreign private issuer)
Document And Entity Information
12 Months Ended
Dec. 31, 2016
Document Information [Line Items]
 
Entity Registrant Name
ENTREE GOLD INC 
Entity Central Index Key
0001271554 
Trading Symbol
egi 
Current Fiscal Year End Date
--12-31 
Entity Filer Category
Smaller Reporting Company 
Entity Current Reporting Status
Yes 
Entity Voluntary Filers
No 
Entity Well-known Seasoned Issuer
No 
Entity Common Stock, Shares Outstanding (in shares)
153,045,408 
Document Type
40-F 
Document Period End Date
Dec. 31, 2016 
Document Fiscal Year Focus
2016 
Document Fiscal Period Focus
FY 
Amendment Flag
false 
Consolidated Statements of Comprehensive Loss (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Exploration
$ 1,855 
$ 5,139 
$ 9,019 
General and administration
2,115 
4,598 
4,002 
Consultancy and advisory fees
   
125 
831 
Impairment of mineral property interests
   
   
552 
Gain on sale of mineral property interests
   
   
(28)
Stock-based compensation
489 
197 
251 
Foreign exchange loss (gain)
343 
(2,919)
(1,979)
Loss from operations
4,802 
7,140 
12,648 
Interest income
(102)
   
(295)
Interest expense
279 
412 
265 
Loss from equity investee
237 
119 
108 
Loss before income taxes
5,216 
7,671 
12,726 
Income tax (recovery) expense
(553)
160 
(4,057)
Net loss
4,663 
7,831 
8,669 
Foreign currency translation adjustment
(717)
4,928 
3,316 
Comprehensive loss
$ 3,946 
$ 12,759 
$ 11,985 
Net loss per common share
 
 
 
Basic and fully diluted (in dollars per share)
$ (0.03)
$ (0.05)
$ (0.06)
Weighted average shares outstanding (000's)
 
 
 
Basic and fully diluted (in shares)
151,925 
147,037 
146,884 
Total shares issued and outstanding (in shares)
153,045 
147,331 
146,984 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Cash and cash equivalents
$ 13,391 
$ 22,786 
Receivables
35 
98 
Prepaid expenses
275 
311 
Total current assets
13,701 
23,195 
Equipment
68 
109 
Mineral property interests
38,875 
37,714 
Long-term investment
146 
149 
Reclamation deposits and other
490 
495 
Total assets
53,280 
61,662 
Liabilities
 
 
Accounts payable and accrued liabilities
455 
1,350 
Total current liabilities
455 
1,350 
Loan payable to Oyu Tolgoi LLC
7,334 
6,824 
Deferred revenue
22,987 
28,925 
Deferred income tax
3,015 
3,567 
Total liabilities
33,791 
40,666 
Stockholders' equity
 
 
Common stock, no par value, unlimited number authorized, 153,045,408 (December 31, 2015 - 147,330,917) issued and outstanding
178,740 
177,206 
Additional paid-in capital
20,863 
20,517 
Accumulated other comprehensive loss
(7,061)
(7,778)
Subscriptions received in advance
559 
   
Accumulated deficit
(173,612)
(168,949)
Total stockholders' equity
19,489 
20,996 
Total liabilities and stockholders' equity
$ 53,280 
$ 61,662 
Consolidated Balance Sheets (Parentheticals) (USD $)
Dec. 31, 2016
Dec. 31, 2015
Common stock, no par value (in dollars per share)
$ 0 
$ 0 
Common stock, shares issued (in shares)
153,045,408 
147,330,917 
Common stock, shares outstanding (in shares)
153,045,408 
147,330,917 
Consolidated Statement of Stockholders' Equity (USD $)
In Thousands, except Share data
Share Capital [Member]
Additional Paid-in Capital [Member]
AOCI Attributable to Parent [Member]
Subscriptions Received in Advance [Member]
Retained Earnings [Member]
Total
Balance at Dec. 31, 2013
$ 177,065 
$ 20,095 
$ 466 
 
$ (152,449)
$ 45,177 
Balance (in shares) at Dec. 31, 2013
146,734,000 
 
 
 
 
 
Net loss for the year
 
 
 
 
(8,669)
(8,669)
Foreign currency translation
 
 
(3,316)
 
 
(3,316)
Stock-based compensation
 
251 
 
 
 
251 
Issue of share capital - mineral property interests (in shares)
250,000 
 
 
 
 
 
Issue of share capital - mineral property interests
73 
 
 
 
 
73 
Balance at Dec. 31, 2014
177,138 
20,346 
(2,850)
 
(161,118)
33,516 
Balance (in shares) at Dec. 31, 2014
146,984,000 
 
 
 
 
 
Net loss for the year
 
 
 
 
(7,831)
(7,831)
Foreign currency translation
 
 
(4,928)
 
 
(4,928)
Stock-based compensation
 
197 
 
 
 
197 
Issue of share capital - stock options (in shares)
347,000 
 
 
 
 
347,000 
Issue of share capital - stock options
68 
(26)
 
 
 
42 
Balance at Dec. 31, 2015
177,206 
20,517 
(7,778)
 
(168,949)
20,996 
Balance (in shares) at Dec. 31, 2015
147,331,000 
 
 
 
 
 
Net loss for the year
 
 
 
 
(4,663)
(4,663)
Subscriptions received in advance
 
 
 
559 
 
559 
Foreign currency translation
 
 
717 
 
 
717 
Stock-based compensation
 
489 
 
 
 
489 
Issue of share capital - stock options (in shares)
585,000 
 
 
 
 
586,000 
Issue of share capital - stock options
197 
(143)
 
 
 
54 
Issue of share capital - Sandstorm (in shares)
5,129,000 
 
 
 
 
 
Issue of share capital - Sandstorm
1,337 
 
 
 
 
1,337 
Balance at Dec. 31, 2016
$ 178,740 
$ 20,863 
$ (7,061)
$ 559 
$ (173,612)
$ 19,489 
Balance (in shares) at Dec. 31, 2016
153,045,000 
 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Net loss
$ (4,663)
$ (7,831)
$ (8,669)
Items not affecting cash
 
 
 
Depreciation
31 
43 
66 
Stock-based compensation
489 
197 
251 
Loss from equity investee
237 
119 
108 
Interest expense
279 
279 
265 
Deferred income tax expense (recovery)
(553)
160 
(3,933)
Gain on sale of mineral property interests
   
   
(28)
Impairment of mineral property interests
   
   
552 
Gain on release of reclamation deposits
(24)
   
   
Unrealized foreign exchange losses (gains)
324 
(2,988)
(1,966)
Other
12 
38 
(3,877)
(10,009)
(13,316)
Changes in non-cash operating working capital
 
 
 
Decrease (increase) in receivables and prepaids
113 
455 
(121)
Decrease (increase) in other assets
(2)
35 
(Decrease) increase in accounts payable and accruals
(949)
(265)
785 
Deposit on metal credit delivering obligation
(5,500)
   
   
(10,206)
(9,821)
(12,617)
Cash flows from financing activities
 
 
 
Proceeds from issuance of capital stock
53 
41 
   
Subscriptions received in advance
559 
   
   
612 
41 
   
Cash flows from investing activities
 
 
 
Mineral property interests
   
(500)
(100)
Reclamation deposits
24 
(4)
17 
Purchase of equipment
(6)
(12)
(13)
Proceeds from sale of equipment
16 
   
   
Proceeds from sale of mineral property interests
   
   
28 
34 
(516)
(68)
Decrease in cash and cash equivalents
(9,560)
(10,296)
(12,685)
Cash and cash equivalents - beginning of year
22,786 
33,517 
46,701 
Effect of exchange rate changes on cash
165 
(435)
(499)
Cash and cash equivalents - end of year
$ 13,391 
$ 22,786 
$ 33,517 
Note 1 - Nature and Continuance of Operations
Nature of Operations [Text Block]
1
Nature and continuance of operations
Entrée Gold Inc. was incorporated under the laws of the Province of British Columbia on
July
19,
1995
and continued under the laws of the Yukon Territory on
January
22,
2003.
On
May
27,
2005,
Entrée Gold Inc. changed its governing jurisdiction from the Yukon Territory to British Columbia by continuing into British Columbia under the Business Corporations Act (British Columbia). The principal business activity of Entrée Gold Inc., together with its subsidiaries (collectively referred to as the "Company"), is the exploration of mineral property interests. To date, the Company has not generated significant revenues from its operations and is considered to be in the exploration stage.
 
All amounts are expressed in United States dollars, except for certain amounts denoted in Canadian dollars ("C$").
 
These consolidated financial statements have been prepared on the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company currently earns no operating revenues. Continued operations of the Company are dependent upon the Company's ability to secure additional equity capital or receive other financial support, and in the longer term to generate profits from business operations. Management believes that the Company has sufficient working capital to maintain its operations for the next
12
months.
Note 2 - Significant Accounting Policies
Significant Accounting Policies [Text Block]
2
Significant accounting policies
Principles of consolidation
 
These consolidated financial statements have been prepared in conformity with generally accepted accounting principles ("GAAP") in the United States of America and include the accounts of the Company and all of its subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation.
 
Use of estimates
 
The preparation of consolidated financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgements about the other sources. The actual results experienced by the Company
may
differ materially and adversely from the Company's estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected.
 
Cash and cash equivalents
 
Cash and cash equivalents includes cash in banks, money market funds, and certificates of term deposits with maturities of less than
three
months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had
$13.4
million in cash at
December
31,
2016.
 
Long-term investments
 
Long-term investments in companies in which the Company has voting interests of
20%
to
50%
or where the Company has the ability to exercise significant influence, are accounted for using the equity method. Under this method, the Company's share of the investees' earnings and losses is included in operations and its investments therein are adjusted by a like amount. Dividends received are credited to the long-term investment accounts.
 
Equipment
 
Equipment, consisting of office, computer, field equipment and buildings, is recorded at cost less accumulated depreciation. Depreciation is recorded on a declining balance basis at rates ranging from
20%
to
30%
per annum.
 
Mineral property interests
 
Costs of exploration and costs of carrying and retaining unproven properties are expensed as incurred. The Company considers mineral rights to be tangible assets and accordingly, the Company capitalizes certain costs related to the acquisition of mineral rights.
 
Asset retirement obligation
 
The Company records the fair value of the liability for closure and removal costs associated with the legal obligations upon retirement or removal of any tangible long-lived assets where the initial recognition of any liability will be capitalized as part of the asset cost and depreciated over its estimated useful life. To date, the Company has not incurred any significant asset retirement obligations.
 
Impairment of long-lived assets
 
Long-lived assets are continually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may
not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the discounted carrying amount of the assets exceeds the fair value of the assets.
 
Stock-based compensation
 
The Company applies the fair value method of accounting for all stock option awards, whereby the Company recognizes a compensation expense for all stock options awarded to employees, officers and consultants based on the fair value of the options on the date of grant, which is determined using the Black Scholes option pricing model. The options are expensed over the vesting period of the options.
 
Financial instruments
 
The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor's carrying amount or exchange amount.
 
Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income.
 
The Company classifies its financial instruments as follows:
 
Cash and cash equivalents is classified as held for trading, and is measured at fair value using Level
1
inputs. Receivables are classified as loans and receivables, and have a fair value approximating their carrying value, due to their short-term nature. The Company's other financial instruments, accounts payable, and loans payable are classified as other financial liabilities, and are measured at amortized cost.
 
Income taxes
 
The Company follows the asset and liability method of accounting for income taxes whereby deferred income taxes are recognized for the deferred income tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective income tax bases (temporary differences). Deferred income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is included in income in the period in which the change occurs. The amount of deferred income tax assets recognized is limited to the amount that is more likely than not to be realized.
 
Foreign currency translation
 
The functional currency of Entrée Gold Inc. is the Canadian dollar. Accordingly, monetary assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the balance sheet date while non-monetary assets and liabilities denominated in a foreign currency are translated at historical rates. Revenue and expense items denominated in a foreign currency are translated at exchange rates prevailing when such items are recognized in the statement of operations and comprehensive loss. Exchange gains or losses arising on translation of foreign currency items are included in the statement of operations and comprehensive loss. The functional currency of Entrée Gold Inc.'s significant subsidiaries is the United States dollar. Upon translation into Canadian dollars for consolidation, monetary assets and liabilities are translated at the exchange rate in effect at the balance sheet date while non-monetary assets and liabilities are translated at historical rates. Revenue and expense items are translated at exchange rates prevailing when such items are recognized in the statement of operations and comprehensive loss. Exchange gains or losses arising on translation of foreign currency items are included in the statement of operations and comprehensive loss.
 
The Company follows the current rate method of translation with respect to its presentation of these consolidated financial statements in the reporting currency, which is the United States dollar. Accordingly, assets and liabilities are translated into United States dollars at the period-end exchange rates while revenue and expenses are translated at the prevailing exchange rates during the period. Related exchange gains and losses are included in a separate component of stockholders' equity as accumulated other comprehensive income.
 
Net loss per share
 
Basic net loss per share is computed by dividing the net loss for the period attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share takes into consideration shares of common stock outstanding (computed under basic loss per share) and potentially dilutive shares of common stock. Diluted net loss per share is not presented separately from basic net loss per share as the conversion of outstanding stock options and warrants into common shares would be anti-dilutive. At
December
31,
2016,
the total number of potentially dilutive shares of common stock excluded from basic net loss per share was
12,010,000
(December
31,
2015
-
13,208,000;
December
31,
2014
-
13,779,000).
 
Comparative figures
 
Certain comparative figures have been reclassified to conform to the current year's presentation.
 
Recent accounting pronouncements
 
In
January
2016,
the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU)
2016
-
01,
"Financial Instruments - Overall (Subtopic
825
-
10):
Recognition and Measurement of Financial Assets and Financial Liabilities". The amendments in ASU
2016
-
01
address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU
2016
-
09
is effective for fiscal years beginning after
December
15,
2017
including interim periods within those years. The Company's financial instruments generally consist of cash and cash equivalents, receivables, deposits, accounts payable and accrued liabilities and loans payable. The fair value of these instruments approximates their carrying values. Accordingly, the Company expects the adoption of ASU
2016
-
01
will not have a material impact on the Company's financial reporting and disclosures.
 
In
March
2016,
the FASB issued ASU
2016
-
07,
"Investments - Equity Method and Joint Ventures (Topic
323):
Simplifying the Transition to the Equity Method of Accounting". The amendments in ASU
2016
-
07
simplify the transition to the equity method of accounting including eliminating the requirement to retroactively adopt the equity method. ASU-
07
is effective for years beginning after
December
15,
2016
and interim periods within those years. The Company is currently reporting its interest in a joint venture as an equity investment and it does not expect the adoption of ASU
2016
-
07
to have an impact on the Company's financial reporting and disclosures.
Note 3 - Equipment
Property, Plant and Equipment Disclosure [Text Block]
3
Equipment
 
   
2016
 
 
2015
 
 
 
Cost
 
 
Accumulated
depreciation
 
 
Net book
value
 
 
Cost
 
 
Accumulated
depreciation
 
 
Net book
value
 
Office equipment  
$
46
 
 
$
38
 
 
$
8
    $
57
    $
46
    $
11
 
Computer equipment  
 
208
 
 
 
177
 
 
 
31
     
277
     
232
     
45
 
Field equipment  
 
124
 
 
 
99
 
 
 
25
     
182
     
134
     
48
 
Buildings  
 
41
 
 
 
37
 
 
 
4
     
40
     
35
     
5
 
   
$
419
 
 
$
351
 
 
$
68
    $
556
    $
447
    $
109
 
Note 4 - Mineral Property Interests
Mineral Property Interests [Text Block]
4
Mineral property interests
 
   
2016
   
2015
 
Ann Mason Project (a)  
$
37,988
    $
36,853
 
Other (b)  
 
887
     
861
 
   
$
38,875
    $
37,714
 
 
Title to mineral property interests involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristics of many mineral property interests. The Company has investigated title to its mineral property interests and, except as otherwise disclosed below, to the best of its knowledge, title to the mineral property interests remains in good standing.
 
The Company's
two
principal assets are the Ann Mason project (the "Ann Mason Project") in Nevada and its interest in the Entrée/Oyu Tolgoi LLC joint venture property in Mongolia (Note
5).
 
a)
 
   Ann Mason, Nevada, United States
 
The Ann Mason Project is defined by a series of both unpatented lode claims on public land administered by the Bureau of Land Management, and title to patented lode claims. The project area includes the Ann Mason and the Blue Hill deposits, several early-stage copper porphyry targets including the Blackjack IP, Blackjack Oxide, Roulette and Minnesota targets, and the Minnesota and Shamrock copper skarn targets.
 
Certain of the unpatented lode claims peripheral to the Ann Mason and Blue Hill deposits are leased to the Company pursuant to a mining lease and option to purchase agreement ("MLOPA") with a Nevada limited liability company. Under the MLOPA, the Company has the option to purchase the claims for
$500,000,
which, if exercised, will be subject to a
3%
net smelter returns ("NSR") royalty (which
may
be bought down to a
1%
NSR royalty for
$2
million). The MLOPA also provides for annual advance minimum royalty payments of
$27,500
which commenced in
2011
and will continue until the commencement of sustained commercial production. The advance payments will be credited against future royalty payments or the buy down of the royalty.
 
In
September
2009,
the Company entered into an agreement whereby the Company
may
acquire an
80%
interest in certain unpatented lode claims to the southwest of the Ann Mason and Blue Hill deposits. In order to acquire its interest, the Company must: (a) incur expenditures of
$1,000,000,
make cash payments of
$140,000
and issue
85,000
common shares of the Company within
three
years (completed); (b) make aggregate advance royalty payments totalling
$375,000
between the
fifth
and
tenth
anniversaries of the agreement
($150,000
of which has been paid); and (c) deliver a bankable feasibility study before the
tenth
anniversary of the agreement.
 
In
February
2013,
the Company entered into an agreement with Sandstorm Gold Ltd. ("Sandstorm") whereby the Company granted Sandstorm a
0.4%
NSR royalty over certain of the unpatented lode claims, including the claims covering the Ann Mason and Blue Hill deposits, in return for an upfront payment of
$5
million (the "Sandstorm NSR Payment") which was recorded as a recovery to acquisition costs.
 
In addition, certain of the patented lode claims peripheral to the Ann Mason and Blue Hill deposits are subject to a
2%
NSR royalty.
 
b)
 
   Other Properties
 
The Company also has interests in other properties in Mongolia (Shivee West), Australia (Blue Rose), the United States (Lordsburg) and Peru (Cañariaco NSR royalty). During fiscal
2014,
the Company recorded an impairment of
$552,095
against these properties.
Note 5 - Long-term Investments
Long-term Investments [Text Block]
5
Long-term investments
Entrée/Oyu Tolgoi JV Property, Mongolia
 
The Company has a carried
20%
joint venture interest in a land package that includes
two
of the Oyu Tolgoi deposits in the South Gobi region of Mongolia (the "Entrée/Oyu Tolgoi JV Property"). The Entrée/Oyu Tolgoi JV Property is comprised of the eastern portion of the Shivee Tolgoi mining licence, which hosts the Hugo North Extension copper-gold deposit, and all of the Javhlant mining licence, which hosts the Heruga copper-gold-molybdenum deposit. The Shivee Tolgoi and Javhlant mining licences were granted by the Mineral Resources Authority of Mongolia in
October
2009.
Title to the
two
licences is held by the Company.
 
In
October
2004,
the Company entered into an arm's-length Equity Participation and Earn-In Agreement (the "Earn In Agreement") with Turquoise Hill Resource Ltd. ("Turquoise Hill"). Under the Earn-In Agreement, Turquoise Hill agreed to purchase equity securities of the Company, and was granted the right to earn an interest in what is now the Entrée/Oyu Tolgoi JV Property. Most of Turquoise Hill's rights and obligations under the Earn-In Agreement were subsequently assigned by Turquoise Hill to what was then its wholly-owned subsidiary, Oyu Tolgoi LLC ("OTLLC"). The Government of Mongolia subsequently acquired a
34%
interest in OTLLC from Turquoise Hill.
 
On
June
30,
2008,
OTLLC gave notice that it had completed its earn-in obligations by expending a total of
$35
million on exploration of the Entrée/Oyu Tolgoi JV Property. OTLLC earned an
80%
interest in all minerals extracted below a sub-surface depth of
560
metres from the Entrée/Oyu Tolgoi JV Property and a
70%
interest in all minerals extracted from surface to a depth of
560
metres from the Entrée/Oyu Tolgoi JV Property. In accordance with the Earn-In Agreement, the Company and OTLLC formed a joint venture (the "Entrée/Oyu Tolgoi JV") on terms annexed to the Earn-In Agreement (the "JVA").
 
The portion of the Shivee Tolgoi mining licence outside of the Entrée/Oyu Tolgoi JV Property, Shivee West, is
100
%
owned by the Company, but is subject to a right of
first
refusal by OTLLC. In
October
2015,
the Company entered into a License Fees Agreement with OTLLC, pursuant to which the parties agreed to negotiate in good faith to amend the JVA to include Shivee West in the definition of Entrée/Oyu Tolgoi JV Property.  The parties also agreed that the annual licence fees for Shivee West would be for the account of each joint venture participant in proportion to their respective interests, with OTLLC contributing the Company's
20%
share charging interest at prime plus
2%
(Note
6).
 
The conversion of the original Shivee Tolgoi and Javhlant exploration licences into mining licences was a condition precedent to the Investment Agreement (the "Oyu Tolgoi Investment Agreement") between Turquoise Hill, OTLLC, the Government of Mongolia and Rio Tinto International Holdings Limited. The licences are part of the contract area covered by the Oyu Tolgoi Investment Agreement, although the Company is not a party to the Oyu Tolgoi Investment Agreement. The Shivee Tolgoi and Javhlant mining licences were each issued for a
30
year term and have rights of renewal for
two
further
20
year terms.
 
As of
December
31,
2016,
the Entrée/Oyu Tolgoi JV had expended approximately
$29.0
million to advance the Entrée/Oyu Tolgoi JV Property. Under the terms of the Entrée/Oyu Tolgoi JV, OTLLC contributed on behalf of the Company its required participation amount charging interest at prime plus
2%
(Note
6).
 
Investment – Entrée/Oyu Tolgoi JV Property
 
The Company accounts for its interest in the Entrée/Oyu Tolgoi JV as a
20%
equity investment. The Company's share of the loss of the joint venture was
$0.2
million for the year ended
December
31,
2016
(2015
-
$0.2
million;
2014
-
$0.1
million) plus accrued interest expense of
$0.3
million for the year ended
December
31,
2016
(2015
-
$0.3
million;
2014
-
$0.3
million).
 
The Entrée/Oyu Tolgoi JV investment carrying value at
December
31,
2016
was
$0.1
million
(2015
-
$0.1
million) and was recorded in long-term investment.
Note 6 - Loans Payable to Oyu Tolgoi
Loan Commitments, Policy [Policy Text Block]
6
Loans payable to Oyu Tolgoi
Under the terms of the Entrée/Oyu Tolgoi JV (Note
5),
OTLLC will contribute funds to approved joint venture programs and budgets on the Company's behalf. Interest on each loan advance shall accrue at an annual rate equal to OTLLC's actual cost of capital or the prime rate of the Royal Bank of Canada, plus
two
percent
(2%)
per annum, whichever is less, as at the date of the advance. The loans will be repayable by the Company monthly from
ninety
percent
(90%)
of the Company's share of available cash flow from the Entrée/Oyu Tolgoi JV. In the absence of available cash flow, the loans will not be repayable. The loans are not expected to be repaid within
one
year.
Note 7 - Deferred Revenue
Deferred Revenue Disclosure [Text Block]
7
Deferred revenue
In
February
2013,
the Company entered into an equity participation and funding agreement (the
"2013
Agreement") with Sandstorm whereby Sandstorm provided an upfront deposit (the "Deposit") of
$40
million. The Company will use future payments that it receives from its mineral property interests to purchase and deliver metal credits to Sandstorm, in amounts that are indexed to the Company's share of gold, silver and copper production from the current Entrée/Oyu Tolgoi JV Property. Upon the delivery of metal credits, Sandstorm will also make the cash payment outlined below. In addition, the
2013
Agreement provided for a partial refund of the Deposit and a pro rata reduction in the number of metal credits deliverable to Sandstorm in the event of a partial expropriation of Entrée's economic interest, contractually or otherwise, in the current Entrée/Oyu Tolgoi JV Property.
 
On
February
23,
2016,
the Company and Sandstorm entered into an Agreement to Amend, whereby the Company refunded
17%
of the Deposit
($6.8
million) (the "Refund") in cash and shares thereby reducing the Deposit to
$33.2
million for a
17%
reduction in the metal credits that the Company is required to deliver to Sandstorm. At closing on
March
1,
2016,
the parties entered into an Amended and Restated Equity Participation and Funding Agreement (the "Amended Sandstorm Agreement"). Under the terms of the Amended Sandstorm Agreement, the Company will purchase and deliver gold, silver and copper credits equivalent to:
 
28.1%
of Entrée's share of gold and silver, and
2.1%
of Entrée's share of copper, produced from the Shivee Tolgoi mining licence (excluding Shivee West); and
 
21.3%
of Entrée's share of gold and silver, and
2.1%
of Entrée's share of copper, produced from the Javhlant mining licence.
 
Upon the delivery of metal credits, Sandstorm will make a cash payment to the Company equal to the lesser of the prevailing market price and
$220
per ounce of gold,
$5
per ounce of silver and
$0.50
per pound of copper (subject to inflation adjustments). After approximately
8.6
million ounces of gold,
40.3
million ounces of silver and
9.1
billion pounds of copper have been produced from the entire current Entrée/Oyu Tolgoi JV Property the cash payment will be increased to the lesser of the prevailing market price and
$500
per ounce of gold,
$10
per ounce of silver and
$1.10
per pound of copper (subject to inflation adjustments). To the extent that the prevailing market price is greater than the amount of the cash payment, the difference between the
two
will be credited against the Deposit (the net amount of the Deposit being the "Unearned Balance").
 
This arrangement does not require the delivery of actual metal, and the Company
may
use revenue from any of its assets to purchase the requisite amount of metal credits.
 
Under the Amended Sandstorm Agreement, Sandstorm has a right of
first
refusal, subject to certain exceptions, on future production-based funding agreements. The Amended Sandstorm Agreement also contains other customary terms and conditions, including representations, warranties, covenants and events of default. The initial term of the Amended Sandstorm Agreement is
50
years, subject to successive
10
-year extensions at the discretion of Sandstorm.
 
In addition, the Amended Sandstorm Agreement provides that the Company will not be required to make any further refund of the Deposit if Entrée's economic interest is reduced by up to and including
17%.
If there is a reduction of greater than
17%
up to and including
34%,
the Amended Sandstorm Agreement provides the Company with the ability to refund a corresponding portion of the Deposit in cash or common shares of the Company or any combination of the
two
at the Company's election, in which case there would be a further corresponding reduction in deliverable metal credits. If the Company elects to refund Sandstorm with common shares of the Company, the value of each common share shall be equal to the volume weighted average price for the
five
(5)
trading days immediately preceding the
90
th
day after the reduction in Entrée's economic interest. In no case will Sandstorm become a "control person" under the Amended Sandstorm Agreement. In the event an issuance of shares would cause Sandstorm to become a "control person", the maximum number of shares will be issued, and with respect to the value of the remaining shares,
50%
will not be refunded (and there will not be a corresponding reduction in deliverable metal credits) and the remaining
50%
will be refunded by the issuance of shares in tranches over time, such that the number of shares that Sandstorm holds does not reach or exceed
20%.
All shares will be priced in the context of the market at the time they are issued.
 
In the event of a full expropriation, the remainder of the Unearned Balance after the foregoing refunds must be returned in cash. 
 
For accounting purposes, the Deposit is accounted for as deferred revenue on the balance sheet and the original Deposit was recorded at the historical amount of
C$40.0
million. As a result of the Amended Sandstorm Agreement, the deferred revenue amount was adjusted to reflect the
$6.8
million Refund which was recorded at the foreign exchange amount at the date of the Refund resulting in a net balance of
C$30.9
million. This amount is subject to foreign currency fluctuations upon conversion to US dollars at each reporting period.
 
The
$6.8
million Refund was paid with
$5.5
million in cash and the issuance of
$1.3
million of common shares of the Company. On
March
1,
2016,
the Company issued
5,128,604
common shares to Sandstorm at a price of
C$0.3496
per common share pursuant to the Agreement to Amend.
Note 8 - Share Capital
Shareholders' Equity and Share-based Payments [Text Block]
8
Share capital
The Company's authorized share capital consists of unlimited common shares without par value. At
December
31,
2016,
the Company had
153,045,408
(2015
-
147,330,917
)
shares issued and outstanding.
Note 9 - Stock-based Compensation
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
9
Stock-based compensation
The Company provides stock-based compensation to its directors, officers, employees, and consultants through grants of stock options.
 
a)
   Stock options
 
The Company has adopted a stock option plan (the "Plan") to grant options to directors, officers, employees and consultants. Under the Plan, the Company
may
grant options to acquire up to
10%
of the issued and outstanding shares of the Company. Options granted can have a term of up to
ten
years and an exercise price typically not less than the Company's closing stock price on the Toronto Stock Exchange on the last trading day before the date of grant. Vesting is determined at the discretion of the Board of Directors.
 
Under the Plan, an option holder
may
elect to transform an option, in whole or in part, into a share appreciation right by providing written notice to the Company that the option holder wishes to terminate the option, in whole or in part and, in lieu of receiving shares to which the terminated option relates (the "Designated Shares"), receive the number of shares, disregarding fractions, which, when multiplied by the weighted average trading price of the shares on the TSX during the
five
trading days immediately preceding the day of termination (the "Fair Value" per share) of the Designated Shares, has a total dollar value equal to the number of Designated Shares multiplied by the difference between the Fair Value and the exercise price per share of the Designated Shares. 
 
The Company uses the Black-Scholes option pricing model to determine the fair value of stock options granted. For employees, the compensation expense is amortized on a straight-line basis over the requisite service period which approximates the vesting period. Compensation expense for stock options granted to non-employees is recognized over the contract services period or, if none exists, from the date of grant until the options vest. Compensation associated with unvested options granted to non-employees is re-measured on each balance sheet date using the Black-Scholes option pricing model.
 
The Company uses historical data to estimate option exercise, forfeiture and employee termination within the valuation model. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company has not paid and does not anticipate paying dividends on its common stock; therefore, the expected dividend yield is assumed to be
zero.
Companies are required to utilize an estimated forfeiture rate when calculating the expense for the reporting period. Based on the best estimate, management applied the estimated forfeiture rate of Nil in determining the expense recorded in the accompanying Statements of Operations and Comprehensive Loss.
 
Stock option transactions are summarized as follows:
 
   
Number of shares
(000's)
 
 
Weighted average
exercise price CAD
 
Outstanding - January 1, 2014\  
 
14,401
 
 
 
1.22
 
Granted  
 
2,815
 
 
 
0.21
 
Forfeited/Expired  
 
(3,437
)
 
 
1.89
 
Outstanding - December 31, 2014  
 
13,779
 
 
 
0.85
 
Granted  
 
1,670
 
 
 
0.34
 
Exercised  
 
(347
)
 
 
0.22
 
Cancelled  
 
(163
)
 
 
0.25
 
Forfeited/Expired  
 
(1,731
)
 
 
2.43
 
Outstanding - December 31, 2015  
 
13,208
 
 
 
0.60
 
Granted  
 
2,520
 
 
 
0.42
 
Exercised  
 
(586
)
 
 
0.25
 
Cancelled  
 
(664
)
 
 
0.28
 
Forfeited/Expired  
 
(2,468
)
 
 
1.17
 
Outstanding - December 31, 2016  
 
12,010
 
 
 
0.48
 
 
At
December
31,
2016,
the following stock options were outstanding:
 
Number of options (000's)
Vested (000's)
Aggregate intrinsic value CAD (000's)
Price per share CAD
Expiry Date
3,215
3,215
170
0.21
1.25
Jan – Sep 2017
3,530
3,530
145
0.30
0.56
Mar – Dec 2018
2,745
2,745
385
0.21
0.38
Dec 2019 – Dec 2020
100
100
3
 
0.39
 
Mar 2021
2,420
2,420
-
 
0.42
 
Nov 2021
12,010
12,010
703
 
 
   
 
     
December 31, 2016 CAD
 
Weighted average exercise price for exercisable options  
 
0.48
 
Weighted average share price for options exercised  
 
0.25
 
Weighted average years to expiry for exercisable options  
 
2.56
 
 
b)    Stock-based compensation
 
For the year ended
December
31,
2016,
the total stock-based compensation charges related to
2,520,000
options granted and vested to officers, employees, directors and consultants was
$0.5
million
(2015
-
$0.2
million;
2014
-
$0.3
million).
 
 
 
2016
   
2015
   
2014
 
General and administration
 
$
461
    $
175
    $
215
 
Exploration
 
 
28
     
22
     
36
 
 
 
$
489
    $
197
    $
251
 
 
The following weighted-average assumptions were used for the Black-Scholes valuation of stock options granted:
 
 
 
2016
 
 
2015
   
2014
 
Risk-free interest rate
 
 
0.62
%
   
0.77
%    
1.25
%
Expected life of options (years)
 
 
4.6
 
   
4.6
     
4.3
 
Annualized volatility
 
 
73
%
   
75
%    
65
%
Dividend rate
 
 
0.00
%
   
0.00
%    
0.00
%
Fair value per option
 
$
0.18
 
  $
0.15
    $
0.09
 
 
Note 10 - Segmented Information
Segment Reporting Disclosure [Text Block]
10
Segmented information
The Company operates in
one
business segment being the exploration of mineral property interests. The Company's assets are geographically segmented as follows:
 
   
2016
   
2015
 
United States  
$
39,169
    $
38,323
 
Canada  
 
13,327
     
22,501
 
Other  
 
784
     
838
 
   
$
53,280
    $
61,662
 
Note 11 - Exploration Costs
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure [Table Text Block]
11
Exploration costs
 
   
2016
   
2015
   
2014
 
United States  
$
1,366
    $
3,486
    $
7,031
 
Mongolia  
 
372
     
1,488
     
1,672
 
Other  
 
117
     
165
     
316
 
   
$
1,855
    $
5,139
    $
9,019
 
Note 12 - Income Taxes
Income Tax Disclosure [Text Block]
12
Income taxes
 
 
 
2016
 
 
2015
   
2014
 
Loss from the year before income taxes
 
$
(5,216
)
  $
(7,671
)   $
(12,726
)
Statutory rate  
 
26.00
%
   
26.00
%    
26.00
%
Expected income tax recovery  
 
(1,356
)
   
(1,994
)    
(3,309
)
Permanent differences and other  
 
(915
)
   
(46
)    
1,646
 
Difference in foreign tax rates  
 
960
 
   
247
     
1,011
 
Effect of change in future tax rates  
 
(47
)
   
3,397
     
-
 
Effect of dissolution of subsidiaries  
 
-
 
   
6,339
     
(4,066
)
Change in valuation allowance  
 
805
 
   
(7,783
)    
661
 
Total income tax expense (recovery)  
$
(553
)
  $
160
    $
(4,057
)
 
 
 
 
 
2016
 
 
2015
   
2014
 
Current income tax expense (recovery)
 
$
-
 
  $
-
    $
(124
)
Deferred income tax expense (recovery)  
 
(553
)
   
160
     
(3,933
)
Total income taxes  
$
(553
)
  $
160
    $
(4,057
)
 
   
2016
 
 
2015
 
   
 
 
     
Deferred income tax assets:  
 
 
     
Non-capital loss carry forward  
$
15,016
 
  $
13,085
 
Resource expenditures  
 
4,052
 
   
4,611
 
Equipment  
 
146
 
   
131
 
Share issue and legal costs  
 
3
 
   
11
 
Other  
 
1,881
 
   
1,926
 
   
 
21,098
 
   
19,764
 
Valuation allowance  
 
(17,618
)
   
(16,577
)
Net deferred income tax assets  
$
3,480
 
  $
3,187
 
   
 
 
 
       
Deferred income tax liabilities:  
 
 
 
       
Foreign exchange on loan  
$
(150
)
  $
(306
)
Mineral property interests  
 
(6,345
)
   
(6,448
)
Net deferred income tax liabilities  
$
(6,495
)
  $
(6,754
)
   
 
 
 
       
 Net deferred income tax liabilities  
$
(3,015
)
  $
(3,567
)
 
 
   
2016
 
 
2015
 
 
2014
 
   
 
             
Canada  
$
28,000
    $
26,790
    $
36,340
 
China  
 
660
     
660
     
690
 
Mongolia  
 
7,100
     
6,990
     
7,160
 
United States  
 
14,880
     
14,880
     
23,260
 
Australia  
 
30
     
30
     
-
 
Peru  
 
580
     
580
     
520
 
Total non-capital loss carry forward  
$
51,250
    $
49,930
    $
67,970
 
 
The Company has available for deduction against future taxable income non-capital losses of approximately
$30.0
million
(2015:
$26.8
million) in Canada,
$0.6
million
(2015:
$0.7
million) in China,
$5.7
million
(2015:
$7.0
million) in Mongolia,
$18.3
million
(2015:
$14.9
million) in the United States of America,
$0.1
million
(2015:
$0.1
million) in Australia and
$0.7
million
(2015:
$0.6
million) in Peru. These losses, if not utilized, will expire through
2036.
Subject to certain restrictions, the Company also has foreign resource expenditures available to reduce taxable income in future years. Deferred tax benefits which
may
arise as a result of these losses, resource expenditures, equipment, share issue and legal costs have not been recognized in these financial statements.
 
Note 13 - Financial Instruments
Financial Instruments Disclosure [Text Block]
13
Financial instruments
a)
   Financial instruments
 
The Company's financial instruments generally consist of cash and cash equivalents, receivables, deposits, accounts payable and accrued liabilities and loans payable. It is management's opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying values.
 
The Company is exposed to currency risk by incurring certain expenditures in currencies other than the Canadian dollar. In addition, as certain of the Company's consolidated subsidiaries' functional currency is the United States dollar, the Company is exposed to foreign currency translation risk. The Company does not use derivative instruments to reduce this currency risk.
 
b)
   Fair value classification of financial instruments
 
Fair value measurement is based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes
three
levels of inputs that
may
be used to measure fair value which are:
 
Level
1
— Quoted prices that are available in active markets for identical assets or liabilities.
 
Level
2
— Quoted prices in active markets for similar assets that are observable.
 
Level
3
— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
 
At
December
31,
2016,
the Company had Level
1
financial instruments, consisting of cash and cash equivalents, with a fair value of
$13.4
million.
Note 14 - Supplemental Cash Flow Information
Cash Flow, Supplemental Disclosures [Text Block]
14
Supplemental cash flow information
There were no significant non-cash transactions during the years ended
December
31,
2016
and
2015.
The significant non-cash transaction for the year ended
December
31,
2014
consisted of the issuance of
250,000
common shares in payment of mineral property acquisitions valued at
$73,618
which have been capitalized as mineral property interests.
Note 15 - Commitments and Contingencies
Commitments Disclosure [Text Block]
15
Commitments and contingencies
As at
December
31,
2016,
the Company had the following commitments:
 
 
 
Total
 
 
Less than 1 year
 
 
1 - 2 years
 
 
Thereafter
 
Lease commitments   $
98
    $
98
    $
-
    $
-
 
 
Under the terms of the Amended Sandstorm Agreement, the Company
may
be subject to a contingent liability if certain events occur (Note
7).
Note 17 - Subsequent Events
Subsequent Events [Text Block]
17
Subsequent events
On
January
11,
2017,
the Company closed the
first
of
two
tranches of the non-brokered private placement announced on
December
15,
2016
(the "Financing"). The Company issued
17,309,971
units at a price of
C$0.41
per unit for gross proceeds of
C$7.1
million. On
January
13,
2017,
the Company closed the
second
and final tranche of the Financing. The Company issued a further
1,219,513
units at a price of
C$0.41
per unit, for additional gross proceeds of
C$0.5
million. In total, the Company issued
18,529,484
units for aggregate gross proceeds of
C$7.6
million. Each unit consists of
one
common share of the Company and
one
-half of
one
transferable common share purchase warrant. Each whole warrant will entitle the holder to acquire
one
additional common share of the Company at a price of
C$0.65
per share for a period of
5
years.
No
commissions or finders' fees are payable in connection with the Financing. The securities issued in connection with the Financing are subject to a hold period expiring
four
months plus
one
day following the date of issuance.
 
Subsequent to
December
31,
2016,
790,000
stock options with an exercise price of
C$0.21,
790,000
stock options with an exercise price of
C$0.30,
50,000
stock options with an exercise price of
C$0.33,
50,000
stock options with an exercise price of
C$0.42
and
1,005,000
stock options with an exercise price of
C$0.56
were exercised or terminated and transformed into stock appreciation rights (Note
9).
An aggregate
1,228,075
common shares were issued, and the Company received gross proceeds of
C$51,450
from the option exercises.
1,085,000
stock options with an exercise price of
C$1.25
expired.
Significant Accounting Policies (Policies)
Principles of consolidation
 
These consolidated financial statements have been prepared in conformity with generally accepted accounting principles ("GAAP") in the United States of America and include the accounts of the Company and all of its subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation.
Use of estimates
 
The preparation of consolidated financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgements about the other sources. The actual results experienced by the Company
may
differ materially and adversely from the Company's estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected.
Cash and cash equivalents
 
Cash and cash equivalents includes cash in banks, money market funds, and certificates of term deposits with maturities of less than
three
months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had
$13.4
million in cash at
December
31,
2016.
Long-term investments
 
Long-term investments in companies in which the Company has voting interests of
20%
to
50%
or where the Company has the ability to exercise significant influence, are accounted for using the equity method. Under this method, the Company's share of the investees' earnings and losses is included in operations and its investments therein are adjusted by a like amount. Dividends received are credited to the long-term investment accounts.
Equipment
 
Equipment, consisting of office, computer, field equipment and buildings, is recorded at cost less accumulated depreciation. Depreciation is recorded on a declining balance basis at rates ranging from
20%
to
30%
per annum.
Mineral property interests
 
Costs of exploration and costs of carrying and retaining unproven properties are expensed as incurred. The Company considers mineral rights to be tangible assets and accordingly, the Company capitalizes certain costs related to the acquisition of mineral rights.
Asset retirement obligation
 
The Company records the fair value of the liability for closure and removal costs associated with the legal obligations upon retirement or removal of any tangible long-lived assets where the initial recognition of any liability will be capitalized as part of the asset cost and depreciated over its estimated useful life. To date, the Company has not incurred any significant asset retirement obligations.
Impairment of long-lived assets
 
Long-lived assets are continually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may
not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the discounted carrying amount of the assets exceeds the fair value of the assets.
Stock-based compensation
 
The Company applies the fair value method of accounting for all stock option awards, whereby the Company recognizes a compensation expense for all stock options awarded to employees, officers and consultants based on the fair value of the options on the date of grant, which is determined using the Black Scholes option pricing model. The options are expensed over the vesting period of the options.
Financial instruments
 
The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor's carrying amount or exchange amount.
 
Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income.
 
The Company classifies its financial instruments as follows:
 
Cash and cash equivalents is classified as held for trading, and is measured at fair value using Level
1
inputs. Receivables are classified as loans and receivables, and have a fair value approximating their carrying value, due to their short-term nature. The Company's other financial instruments, accounts payable, and loans payable are classified as other financial liabilities, and are measured at amortized cost.
Income taxes
 
The Company follows the asset and liability method of accounting for income taxes whereby deferred income taxes are recognized for the deferred income tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective income tax bases (temporary differences). Deferred income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is included in income in the period in which the change occurs. The amount of deferred income tax assets recognized is limited to the amount that is more likely than not to be realized.
Foreign currency translation
 
The functional currency of Entrée Gold Inc. is the Canadian dollar. Accordingly, monetary assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the balance sheet date while non-monetary assets and liabilities denominated in a foreign currency are translated at historical rates. Revenue and expense items denominated in a foreign currency are translated at exchange rates prevailing when such items are recognized in the statement of operations and comprehensive loss. Exchange gains or losses arising on translation of foreign currency items are included in the statement of operations and comprehensive loss. The functional currency of Entrée Gold Inc.'s significant subsidiaries is the United States dollar. Upon translation into Canadian dollars for consolidation, monetary assets and liabilities are translated at the exchange rate in effect at the balance sheet date while non-monetary assets and liabilities are translated at historical rates. Revenue and expense items are translated at exchange rates prevailing when such items are recognized in the statement of operations and comprehensive loss. Exchange gains or losses arising on translation of foreign currency items are included in the statement of operations and comprehensive loss.
 
The Company follows the current rate method of translation with respect to its presentation of these consolidated financial statements in the reporting currency, which is the United States dollar. Accordingly, assets and liabilities are translated into United States dollars at the period-end exchange rates while revenue and expenses are translated at the prevailing exchange rates during the period. Related exchange gains and losses are included in a separate component of stockholders' equity as accumulated other comprehensive income.
Net loss per share
 
Basic net loss per share is computed by dividing the net loss for the period attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share takes into consideration shares of common stock outstanding (computed under basic loss per share) and potentially dilutive shares of common stock. Diluted net loss per share is not presented separately from basic net loss per share as the conversion of outstanding stock options and warrants into common shares would be anti-dilutive. At
December
31,
2016,
the total number of potentially dilutive shares of common stock excluded from basic net loss per share was
12,010,000
(December
31,
2015
-
13,208,000;
December
31,
2014
-
13,779,000).
Comparative figures
 
Certain comparative figures have been reclassified to conform to the current year's presentation.
Recent accounting pronouncements
 
In
January
2016,
the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU)
2016
-
01,
"Financial Instruments - Overall (Subtopic
825
-
10):
Recognition and Measurement of Financial Assets and Financial Liabilities". The amendments in ASU
2016
-
01
address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU
2016
-
09
is effective for fiscal years beginning after
December
15,
2017
including interim periods within those years. The Company's financial instruments generally consist of cash and cash equivalents, receivables, deposits, accounts payable and accrued liabilities and loans payable. The fair value of these instruments approximates their carrying values. Accordingly, the Company expects the adoption of ASU
2016
-
01
will not have a material impact on the Company's financial reporting and disclosures.
 
In
March
2016,
the FASB issued ASU
2016
-
07,
"Investments - Equity Method and Joint Ventures (Topic
323):
Simplifying the Transition to the Equity Method of Accounting". The amendments in ASU
2016
-
07
simplify the transition to the equity method of accounting including eliminating the requirement to retroactively adopt the equity method. ASU-
07
is effective for years beginning after
December
15,
2016
and interim periods within those years. The Company is currently reporting its interest in a joint venture as an equity investment and it does not expect the adoption of ASU
2016
-
07
to have an impact on the Company's financial reporting and disclosures.
Note 3 - Equipment (Tables)
Property, Plant and Equipment [Table Text Block]
   
2016
 
 
2015
 
 
 
Cost
 
 
Accumulated
depreciation
 
 
Net book
value
 
 
Cost
 
 
Accumulated
depreciation
 
 
Net book
value
 
Office equipment  
$
46
 
 
$
38
 
 
$
8
    $
57
    $
46
    $
11
 
Computer equipment  
 
208
 
 
 
177
 
 
 
31
     
277
     
232
     
45
 
Field equipment  
 
124
 
 
 
99
 
 
 
25
     
182
     
134
     
48
 
Buildings  
 
41
 
 
 
37
 
 
 
4
     
40
     
35
     
5
 
   
$
419
 
 
$
351
 
 
$
68
    $
556
    $
447
    $
109
 
Note 4 - Mineral Property Interests (Tables)
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]
   
2016
   
2015
 
Ann Mason Project (a)  
$
37,988
    $
36,853
 
Other (b)  
 
887
     
861
 
   
$
38,875
    $
37,714
 
Note 9 - Stock-based Compensation (Tables)
   
Number of shares
(000's)
 
 
Weighted average
exercise price CAD
 
Outstanding - January 1, 2014\  
 
14,401
 
 
 
1.22
 
Granted  
 
2,815
 
 
 
0.21
 
Forfeited/Expired  
 
(3,437
)
 
 
1.89
 
Outstanding - December 31, 2014  
 
13,779
 
 
 
0.85
 
Granted  
 
1,670
 
 
 
0.34
 
Exercised  
 
(347
)
 
 
0.22
 
Cancelled  
 
(163
)
 
 
0.25
 
Forfeited/Expired  
 
(1,731
)
 
 
2.43
 
Outstanding - December 31, 2015  
 
13,208
 
 
 
0.60
 
Granted  
 
2,520
 
 
 
0.42
 
Exercised  
 
(586
)
 
 
0.25
 
Cancelled  
 
(664
)
 
 
0.28
 
Forfeited/Expired  
 
(2,468
)
 
 
1.17
 
Outstanding - December 31, 2016  
 
12,010
 
 
 
0.48
 
Number of options (000's)
Vested (000's)
Aggregate intrinsic value CAD (000's)
Price per share CAD
Expiry Date
3,215
3,215
170
0.21
1.25
Jan – Sep 2017
3,530
3,530
145
0.30
0.56
Mar – Dec 2018
2,745
2,745
385
0.21
0.38
Dec 2019 – Dec 2020
100
100
3
 
0.39
 
Mar 2021
2,420
2,420
-
 
0.42
 
Nov 2021
12,010
12,010
703
 
 
   
 
     
December 31, 2016 CAD
 
Weighted average exercise price for exercisable options  
 
0.48
 
Weighted average share price for options exercised  
 
0.25
 
Weighted average years to expiry for exercisable options  
 
2.56
 
 
 
2016
   
2015
   
2014
 
General and administration
 
$
461
    $
175
    $
215
 
Exploration
 
 
28
     
22
     
36
 
 
 
$
489
    $
197
    $
251
 
 
 
2016
 
 
2015
   
2014
 
Risk-free interest rate
 
 
0.62
%
   
0.77
%    
1.25
%
Expected life of options (years)
 
 
4.6
 
   
4.6
     
4.3
 
Annualized volatility
 
 
73
%
   
75
%    
65
%
Dividend rate
 
 
0.00
%
   
0.00
%    
0.00
%
Fair value per option
 
$
0.18
 
  $
0.15
    $
0.09
 
Note 10 - Segmented Information (Tables)
Schedule of Segment Reporting Information, by Segment [Table Text Block]
   
2016
   
2015
 
United States  
$
39,169
    $
38,323
 
Canada  
 
13,327
     
22,501
 
Other  
 
784
     
838
 
   
$
53,280
    $
61,662
 
Note 11 - Exploration Costs (Tables)
Schedule of Exploration Costs Expensed Disclosure [Table Text Block]
   
2016
   
2015
   
2014
 
United States  
$
1,366
    $
3,486
    $
7,031
 
Mongolia  
 
372
     
1,488
     
1,672
 
Other  
 
117
     
165
     
316
 
   
$
1,855
    $
5,139
    $
9,019
 
Note 12 - Income Taxes (Tables)
 
 
2016
 
 
2015
   
2014
 
Loss from the year before income taxes
 
$
(5,216
)
  $
(7,671
)   $
(12,726
)
Statutory rate  
 
26.00
%
   
26.00
%    
26.00
%
Expected income tax recovery  
 
(1,356
)
   
(1,994
)    
(3,309
)
Permanent differences and other  
 
(915
)
   
(46
)    
1,646
 
Difference in foreign tax rates  
 
960
 
   
247
     
1,011
 
Effect of change in future tax rates  
 
(47
)
   
3,397
     
-
 
Effect of dissolution of subsidiaries  
 
-
 
   
6,339
     
(4,066
)
Change in valuation allowance  
 
805
 
   
(7,783
)    
661
 
Total income tax expense (recovery)  
$
(553
)
  $
160
    $
(4,057
)
 
 
2016
 
 
2015
   
2014
 
Current income tax expense (recovery)
 
$
-
 
  $
-
    $
(124
)
Deferred income tax expense (recovery)  
 
(553
)
   
160
     
(3,933
)
Total income taxes  
$
(553
)
  $
160
    $
(4,057
)
   
2016
 
 
2015
 
   
 
 
     
Deferred income tax assets:  
 
 
     
Non-capital loss carry forward  
$
15,016
 
  $
13,085
 
Resource expenditures  
 
4,052
 
   
4,611
 
Equipment  
 
146
 
   
131
 
Share issue and legal costs  
 
3
 
   
11
 
Other  
 
1,881
 
   
1,926
 
   
 
21,098
 
   
19,764
 
Valuation allowance  
 
(17,618
)
   
(16,577
)
Net deferred income tax assets  
$
3,480
 
  $
3,187
 
   
 
 
 
       
Deferred income tax liabilities:  
 
 
 
       
Foreign exchange on loan  
$
(150
)
  $
(306
)
Mineral property interests  
 
(6,345
)
   
(6,448
)
Net deferred income tax liabilities  
$
(6,495
)
  $
(6,754
)
   
 
 
 
       
 Net deferred income tax liabilities  
$
(3,015
)
  $
(3,567
)
Note 15 - Commitments and Contingencies (Tables)
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
 
 
Total
 
 
Less than 1 year
 
 
1 - 2 years
 
 
Thereafter
 
Lease commitments   $
98
    $
98
    $
-
    $
-
 
Note 2 - Significant Accounting Policies (Details Textual) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash
$ 13.4 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
12,010,000 
13,208,000 
13,779,000 
Minimum [Member]
 
 
 
Equipment, Declining Balance Depreciation, Rate
20.00% 
 
 
Maximum [Member]
 
 
 
Equipment, Declining Balance Depreciation, Rate
30.00% 
 
 
Note 3 - Equipment - Equipment (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Cost
$ 419 
$ 556 
Accumulated depreciation
351 
447 
Net book value
68 
109 
Office Equipment [Member]
 
 
Cost
46 
57 
Accumulated depreciation
38 
46 
Net book value
11 
Computer Equipment [Member]
 
 
Cost
208 
277 
Accumulated depreciation
177 
232 
Net book value
31 
45 
Field Equipment [Member]
 
 
Cost
124 
182 
Accumulated depreciation
99 
134 
Net book value
25 
48 
Building [Member]
 
 
Cost
41 
40 
Accumulated depreciation
37 
35 
Net book value
$ 4 
$ 5 
Note 4 - Mineral Property Interests (Details Textual) (USD $)
12 Months Ended 1 Months Ended 12 Months Ended 72 Months Ended 1 Months Ended 91 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Feb. 28, 2013
Sandstorm [Member]
Dec. 31, 2016
Certain Unpatented Lode Claims Peripheral to the Ann Mason and Blue Hill Deposits [Member]
MLOPA [Member]
Dec. 31, 2016
Certain Unpatented Lode Claims Peripheral to the Ann Mason and Blue Hill Deposits [Member]
MLOPA [Member]
Dec. 31, 2016
Certain Unpatented Lode Claims Peripheral to the Ann Mason and Blue Hill Deposits [Member]
MLOPA [Member]
Maximum [Member]
Dec. 31, 2016
Certain Unpatented Lode Claims Peripheral to the Ann Mason and Blue Hill Deposits [Member]
MLOPA [Member]
Minimum [Member]
Sep. 30, 2009
Certain Unpatented Lode Claims to the Southwest of the Ann Mason and Blue Hill Deposits [Member]
Agreement Whereby the Company May Acquire an Interest in Mineral Properties [Member]
Dec. 31, 2016
Certain Unpatented Lode Claims to the Southwest of the Ann Mason and Blue Hill Deposits [Member]
Agreement Whereby the Company May Acquire an Interest in Mineral Properties [Member]
Dec. 31, 2016
Certain Patented Lode Claims Peripheral to the Ann Mason and Blue Hill Deposits [Member]
Dec. 31, 2014
Other Properties [Member]
Mineral Property Interests, Option to Purchase
 
 
 
 
$ 500,000 
$ 500,000 
 
 
 
 
 
 
Mineral Property Interests, Option to Purchase, Net Smelter Returns Royalty Rate
 
 
 
 
 
 
3.00% 
1.00% 
 
 
 
 
Mineral Property Interests, Option to Purchase, Net Smelter Returns Royalty Rate, Payment Required to Bring Down the Rate to the Minimum
 
 
 
 
2,000,000 
 
 
 
 
 
 
 
Mineral Property Interests, Option to Purchase, Net Smelter Returns Royalty, Annual Advance Minimum Royalty Payments
 
 
 
 
 
27,500 
 
 
 
 
 
 
Mineral Property Interests, Option to Acquire, Percentage
 
 
 
 
 
 
 
 
 
80.00% 
 
 
Mineral Property Interests, Option to Acquire, Expenditures Required to Incur Within Three Years
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
Mineral Property Interests, Option to Acquire, Cash Payments Required Within Three Years
 
 
 
 
 
 
 
 
140,000 
 
 
 
Mineral Property Interests, Option to Acquire, Common Shares Required to Issue Within Three Years
 
 
 
 
 
 
 
 
85,000 
 
 
 
Mineral Property Interests, Option to Acquire, Aggregate Advance Royalty Payments Required Between the Fifth and Tenth Anniversaries of the Agreement
 
 
 
 
 
 
 
 
375,000 
 
 
 
Mineral Property Interests, Option to Acquire, Aggregate Advance Royalty Payments, Actual
 
 
 
 
 
 
 
 
 
150,000 
 
 
Mineral Property Interests Agreement, NSR Royalty
 
 
 
0.40% 
 
 
 
 
 
 
 
 
Mineral Property Interests, NSR Royalty, Upfront Payment Recorded as a Recovery to Acquisition Costs
 
 
 
5,000,000 
 
 
 
 
 
 
 
 
Mineral Property Interests, NSR Royalty Rate
 
 
 
 
 
 
 
 
 
 
2.00% 
 
Asset Impairment Charges
    
    
$ 552,000 
 
 
 
 
 
 
 
 
$ 552,095 
Note 4 - Mineral Property Interests (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Capitalized mineral property acquisition cost
$ 38,875 
$ 37,714 
Ann Mason [Member]
 
 
Capitalized mineral property acquisition cost
37,988 
36,853 
Other [Member]
 
 
Capitalized mineral property acquisition cost
$ 887 
$ 861 
Note 5 - Long-term Investments (Details Textual) (USD $)
12 Months Ended 1 Months Ended 12 Months Ended 45 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Shivee Tolgoi and Javhlant [Member]
Dec. 31, 2016
Shivee Tolgoi [Member]
Oct. 30, 2015
OTLLC [Member]
Prime Rate [Member]
Dec. 31, 2016
OTLLC [Member]
Prime Rate [Member]
Dec. 31, 2016
Entree/Oyu Tolgoi JV Property [Member]
Dec. 31, 2015
Entree/Oyu Tolgoi JV Property [Member]
Dec. 31, 2014
Entree/Oyu Tolgoi JV Property [Member]
Dec. 31, 2016
Entree/Oyu Tolgoi JV Property [Member]
Long-term Investment [Member]
Dec. 31, 2015
Entree/Oyu Tolgoi JV Property [Member]
Long-term Investment [Member]
Jun. 30, 2008
Entree/Oyu Tolgoi JV Property [Member]
OTLLC [Member]
Oct. 31, 2004
OTLLC [Member]
The Government of Mongolia [Member]
Equity Method Investment, Ownership Percentage
 
 
 
 
 
 
 
20.00% 
 
 
 
 
 
34.00% 
Exploration Expense, Mining
 
 
 
 
 
 
 
 
 
 
 
 
$ 35,000,000 
 
Percentage Interest Owned in All Minerals Extracted Below a Sub-surface Depth of 560 Metres
 
 
 
 
 
 
 
 
 
 
 
 
80.00% 
 
Percentage Interest Owned in All Minerals Extracted from Surface to a Depth of 560 Metres
 
 
 
 
 
 
 
 
 
 
 
 
70.00% 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
2.00% 
2.00% 
 
 
 
 
 
 
 
Mining Licenses, Term
 
 
 
30 years 
 
 
 
 
 
 
 
 
 
 
Mining Licenses, Number of Renewal Rights
 
 
 
 
 
 
 
 
 
 
 
 
 
Mining Licenses, Renewal Rights, Renewal Term
 
 
 
20 years 
 
 
 
 
 
 
 
 
 
 
Joint Venture Property, Cumulative Expenditures
 
 
 
 
 
 
 
29,000,000 
 
 
 
 
 
 
Income (Loss) from Equity Method Investments
(237,000)
(119,000)
(108,000)
 
 
 
 
(200,000)
(200,000)
(100,000)
 
 
 
 
Accrued Interest Expense
 
 
 
 
 
 
 
300,000 
300,000 
300,000 
 
 
 
 
Equity Method Investments
 
 
 
 
 
 
 
 
 
 
$ 100,000 
$ 100,000 
 
 
Ownership in Mining License
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
Note 6 - Loans Payable to Oyu Tolgoi (Details Textual) (OTLLC [Member])
1 Months Ended 12 Months Ended
Oct. 30, 2015
Dec. 31, 2016
Financing Arrangements Related to Licenses, Monthly Repayments of Loans, Percentage of Available Cash Flow from Joint Venture
 
90.00% 
Prime Rate [Member]
 
 
Debt Instrument, Basis Spread on Variable Rate
2.00% 
2.00% 
Note 7 - Deferred Revenue (Details Textual)
0 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Feb. 28, 2013
Sandstorm [Member]
The 2013 Agreement [Member]
CAD ($)
Mar. 1, 2016
Sandstorm [Member]
Equity Participation and Funding Agreement, Agreement to Amend [Member]
Feb. 23, 2016
Sandstorm [Member]
Equity Participation and Funding Agreement, Agreement to Amend [Member]
USD ($)
Mar. 1, 2016
Sandstorm [Member]
Equity Participation and Funding Agreement, Agreement to Amend [Member]
CAD ($)
Feb. 23, 2016
Sandstorm [Member]
Equity Participation and Funding Agreement, Agreement to Amend [Member]
USD ($)
Feb. 23, 2016
Sandstorm [Member]
Equity Participation and Funding Agreement, Agreement to Amend [Member]
CAD ($)
Mar. 1, 2016
Sandstorm [Member]
Amended Sandstorm Agreement [Member]
Mar. 1, 2016
Sandstorm [Member]
Amended Sandstorm Agreement [Member]
Mar. 1, 2016
Sandstorm [Member]
Amended Sandstorm Agreement [Member]
Maximum [Member]
USD ($)
Mar. 1, 2016
Sandstorm [Member]
Amended Sandstorm Agreement [Member]
Shivee Tolgoi Mining License, Excluding Shivee West [Member]
Mar. 1, 2016
Sandstorm [Member]
Amended Sandstorm Agreement [Member]
Javhlant Mining License [Member]
Deferred Revenue
$ 22,987,000 
$ 28,925,000 
$ 40,000,000 
 
 
 
$ 33,200,000 
$ 30,900,000 
 
 
 
 
 
Equity Participation and Funding Agreement, Percentage of Deposit Refunded
 
 
 
 
17 years 
 
 
 
 
 
 
 
 
Equity Participation and Funding Agreement, Deposit Refunded During Period
 
 
 
 
6,800,000 
 
 
 
 
 
 
 
 
Equity Participation and Funding Agreement, Percentage Reduction in the Metal Credits Required to Deliver to Counterparty
 
 
 
 
17.00% 
 
 
 
 
 
 
 
 
Equity Participation and Funding Agreement, Percentage of Gold and Silver Agreed to Purchase and Deliver
 
 
 
 
 
 
 
 
 
 
 
28.10% 
21.30% 
Equity Participation and Funding Agreement, Percentage of Copper Agreed to Purchase and Deliver
 
 
 
 
 
 
 
 
 
 
 
2.10% 
2.10% 
Equity Participation and Funding Agreement, Cash Payments to Be Received from Counterparty Per Ounce of Gold
 
 
 
 
 
 
 
 
 
 
220 
 
 
Equity Participation and Funding Agreement, Cash Payments to Be Received from Counterparty Per Ounce of Silver
 
 
 
 
 
 
 
 
 
 
 
 
Equity Participation and Funding Agreement, Cash Payments to Be Received from Counterparty Per Pound of Copper
 
 
 
 
 
 
 
 
 
 
0.50 
 
 
Equity Participation and Funding Agreement, Threshold, Number of Ounces of Gold to Be Produced Before the Cash Payments from Counterparty Will Be Increased
 
 
 
 
 
 
 
 
 
 
8,600,000 
 
 
Equity Participation and Funding Agreement, Threshold, Number of Ounces of Silver to Be Produced Before the Cash Payments from Counterparty Will Be Increased
 
 
 
 
 
 
 
 
 
 
40,300,000 
 
 
Equity Participation and Funding Agreement, Threshold, Number of Pounds of Copper to Be Produced Before the Cash Payments from Counterparty Will Be Increased
 
 
 
 
 
 
 
 
 
 
9,100,000 
 
 
Equity Participation and Funding Agreement, Cash Payments to Be Received from Counterparty Per Ounce of Gold, Beyond Threshold
 
 
 
 
 
 
 
 
 
 
500 
 
 
Equity Participation and Funding Agreement, Cash Payments to Be Received from Counterparty Per Ounce of Silver, Beyond Threshold
 
 
 
 
 
 
 
 
 
 
10 
 
 
Equity Participation and Funding Agreement, Cash Payments to Be Received from Counterparty Per Pound of Copper, Beyond Threshold
 
 
 
 
 
 
 
 
 
 
1.10 
 
 
Equity Participation and Funding Agreement, Initial Term
 
 
 
 
 
 
 
 
50 years 
 
 
 
 
Equity Participation and Funding Agreement, Term of Extensions
 
 
 
 
 
 
 
 
10 years 
 
 
 
 
Equity Participation and Funding Agreement, Entity's Economic Interest Below Which No Further Refund of Deposit Will Be Required
 
 
 
 
 
 
 
 
 
17.00% 
 
 
 
Equity Participation and Funding Agreement, Entity's Economic Interest Above Which the Entity May Refund a Corresponding Portion of the Deposit it Cash or Common Shares
 
 
 
 
 
 
 
 
 
17.00% 
 
 
 
Equity Participation and Funding Agreement, Entity's Economic Interest Below Which the Entity May Refund a Corresponding Portion of the Deposit it Cash or Common Shares
 
 
 
 
 
 
 
 
 
34.00% 
 
 
 
Equity Participation and Funding Agreement, Determination of the Value of Each Common Share, Number of Trading Days
 
 
 
 
 
 
 
 
 
 
 
 
Equity Participation and Funding Agreement, Determination of the Value of Each Common Share, Number of Days After the Reduction in Economic Interest At Which Time Determination Will Be Made
 
 
 
 
 
 
 
 
90 
 
 
 
 
Equity Participation and Funding Agreement, Percentage of Remaining Shares to Not Be Refunded If Counterparty Becomes a Control Person
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
Equity Participation and Funding Agreement, Percentage of Remaining Shares to Be Refunded If Counterparty Becomes a Control Person
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
Equity Participation and Funding Agreement, Maximum Share Ownership Percentage of Counterparty
 
 
 
 
 
 
 
 
 
20.00% 
 
 
 
Equity Participation and Funding Agreement, Deposit Refunded During Period, Cash Portion
 
 
 
 
5,500,000 
 
 
 
 
 
 
 
 
Equity Participation and Funding Agreement, Deposit Refunded During Period, Equity Portion
 
 
 
 
$ 1,300,000 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, New Issues
 
 
 
5,128,604 
 
 
 
 
 
 
 
 
 
Share Price
 
 
 
 
 
$ 0.3496 
 
 
 
 
 
 
 
Note 8 - Share Capital (Details Textual)
Dec. 31, 2016
Dec. 31, 2015
Common Stock, Shares, Issued
153,045,408 
147,330,917 
Common Stock, Shares, Outstanding
153,045,408 
147,330,917 
Note 9 - Stock-based Compensation (Details Textual) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Transformation of Options to Share Appreciation Rights, Computation, Number of Trading Days Over Which Weighted Average Trading Price is Determined
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate
0.00% 
0.00% 
0.00% 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross
2,520,000 
1,670,000 
2,815,000 
Allocated Share-based Compensation Expense
$ 489 
$ 197 
$ 251 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares
2,520,000 
 
 
Employee Stock Option [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum
10.00% 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period
10 years 
 
 
Note 9 - Stock-based Compensation - Stock Option Transactions (Details) (CAD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014