Insurance K92 MINING INC.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENT
S
June 30, 2017
(Presented in United States Dollars - unaudited)
4
3. INVENTORY
Inventory of $1,496,186 as of
June 30, 2017 (December 31, 2016
- $931,160) consists of min
e supplies, consumables
and fuel.
4. PREPAYMENTS
Prepayments of $864,179 as of June 30, 2017 (December 31, 2016
- $266,427) consists of prepaid insurance and
investor relations.
5. EXPLORATION AND
EVALUATION ASSETS
Title to mineral properties
Title to mineral properties invol
ves certain inherent risks due
to the difficulties of determining the validity of certain
mineral titles as well as the potential for problems arising fr
om the frequently ambiguous conveyancing history
characteristic of many mineral properties.
Mining Lease 150 (“ML 150”)
The Company holds the mining rights to ML 150 until June 13, 20
24.
As a requirement of the mining lease, the Company must commenc
e mining operations on the Kora deposit located on
ML 150 on or before June 30, 2018.
The Company began capitalizing costs associated with ML 150 to
Mineral Properties under Development within
Property, Plant and Equipment a
fter technical feasibility and c
ommercial viability was r
eached December 1, 2016.
Exploration Licenses (“EL”) 470, 693, and 1341
The Company holds certain exploration licenses adjacent to the
Company’s ML 150. The Company has not assigned
any value to these licenses.