These factors are not intended to represent a complete list of the general or specific factors that could affect us.
All forward-looking statements speak only as of the date made. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements. Except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
You should not place undue reliance on these forward-looking statements.
Cautionary Note Regarding Exploration Stage Companies
We are an exploration stage company and do not currently have any known reserves and cannot be expected to have reserves unless and until a feasibility study is completed for the Sierra Mojada concessions that shows proven and probable reserves. There can be no assurance that our concessions contain proven and probable reserves and investors may lose their entire investment. See “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2013.
Business Overview
Silver Bull, incorporated in Nevada, is an exploration stage company, engaged in the business of mineral exploration. Our primary objective is to define sufficient mineral reserves on the Sierra Mojada Property to justify the development of a mechanized mining operation. We conduct our operations in Mexico through our wholly-owned Mexican subsidiaries, Minera Metalin S.A. de C.V. (“Minera”) and Contratistas de Sierra Mojada S.A. de C.V. (“Contratistas”), and through Minera’s wholly-owned subsidiary, Minas de Coahuila SBR S.A. de C.V. (“Minas”). However, as noted above, we have not established any reserves at the Sierra Mojada Property, and are in the exploration stage and may never enter the development or production stage.
Our principal offices are located at 925 West Georgia Street, Suite 1908, Vancouver, BC, Canada V6C 3L2, and our telephone number is 604-687-5800.
Properties Concessions and Property Concessions Outlook
Sierra Mojada Property
In January 2014, our Board of Directors approved a calendar-year 2014 budget of $1.8 million for exploration and property holding costs for the Sierra Mojada Property. The focus of the 2014 calendar year program is continuing to progress in securing additional surface rights, maintenance of our property concessions, further studying power and water alternatives and continued metallurgical work.
Metallurgical Studies
We have a metallurgical program to test the recovery of the silver mineralization using the agitation cyanide leach method and recovery of the zinc mineralization using the SART process (sulfidization, acidification, recycling, and thickening).
We have received results for metallurgical testing on samples taken from areas throughout the silver zone and the zinc zone. The test work on the silver zone focused on cyanide leach recovery of the silver using “Bottle Roll” tests to simulate an agitation leach system and to determine the recovery of low grade zinc that occurs in the silver zone and high grade zinc from the zinc zone that had been blended with mineralization from the silver zone to the leach solution. The silver was recovered from the cyanide leach solution using the Merrill Crowe technique and the zinc was recovered from the leach solution using the SART process. The SART Process is a metallurgical process that regenerates and recycles the cyanide used in the leaching process of the silver and zinc and allows for the recovery of zinc that has been leached by the cyanide solution. The results showed an overall average silver recovery of 73.2% with peak values of 89.0% and an overall average zinc recovery of 44% in the silver zone. Floatation test work focused on the zinc zone was completed in 2013 and it does not appear to be a viable way to recover the zinc based on the work done to date.
Mineralized Material Estimate
On December 19, 2013, JDS Energy & Mining Inc. delivered Silver Bull’s amended initial Preliminary Economic Assessment (the “PEA Technical Report”) on the silver and zinc mineralization for the Sierra Mojada Project in accordance with Canadian National Instrument 43-101. The PEA Technical Report includes an update on the silver and zinc mineralization which was estimated from 1,372 diamond drill holes, 25 reverse circulation drill holes, 9,025 channel samples and 2,345 long holes. At a cutoff grade of 25 grams/tonne of silver for mineralized material, the PEA Technical Report indicates mineralized material of 71.1 million tonnes at an average silver grade of 71.5 grams/tonne silver and an average zinc percentage of 1.34%.
“Mineralized material” as used in this Quarterly Report on Form 10-Q, although permissible under the Securities and Exchange Commission’s Industry Guide 7, does not indicate “reserves” by SEC standards. We cannot be certain that any part of the Sierra Mojada Project will ever be confirmed or converted into SEC Industry Guide 7 compliant “reserves.” Investors are cautioned not to assume that all or any part of the mineralized material will ever be confirmed or converted into reserves or that mineralized material can be economically or legally extracted.
Geological Mapping
A regional mapping and prospecting exploration program was completed on the Palamos Negros prospect. The aim of this program is to identify potential future drill targets in this prospect, which lies outside of the silver and zinc zones.
Mexican Tax Reform
On December 11, 2013, the Mexican tax reform package was published in the official gazette and became applicable on January 1, 2014. There are a number of significant changes in the Mexican tax reform package. The planned corporate tax rate reductions to 29% in 2014 and 28% thereafter have been repealed and the corporate tax rate will remain at 30%. The business flat tax (IETU) has been repealed. A special mining royalty of 7.5% will apply to net profits derived by a property concession holder from the sale or transfer of extraction related activities. Net profits for the purpose of this royalty will be determined in a manner similar to the calculation of general taxable income with certain deductions not available including for investment in fixed assets and interest. In addition, owners of property concessions will be required to pay a 0.5% tax on gross income derived from the sale of gold, silver and platinum. Further, a 10% withholding tax on dividend distributions has been introduced but will not supercede treaty rates. The Company has not determined the effects of these reforms at this time.
Gabon Property
On December 13, 2013, we entered into a binding letter of agreement, and on May 21, 2014 we executed a share purchase agreement (the “Transaction”) with BHK Resources, Inc. (“BHK”) to sell all of the issued and outstanding securities of our subsidiary, Dome International, which holds, indirectly, a 100% interest in and to the Ndjole manganese and gold license through its wholly-owned subsidiary, Dome Ventures SARL Gabon (“Dome Gabon”), for cash consideration of $1,500,000. The Transaction is expected to be completed in the three months ended July 31, 2014.
The proposed Transaction is subject to the completion of a financing by BHK generating minimum proceeds of $CDN 4.0 million from the sale of its securities (condition may be waived at the option of BHK) and the approval of the TSX-V and other applicable regulatory authorities. Silver Bull was paid a $25,000 non-refundable deposit upon the signing of the binding letter of agreement. Prior to the closing of the transaction, we will transfer all of the issued and outstanding securities of African Resources SARL Gabon from Dome International to another of our subsidiaries.
Results of Operations
Three Months Ended April 30, 2014 and April 30, 2013
For the three months ended April 30, 2014, we experienced a net loss of $1,269,000, or approximately $0.01 per share, compared to a net loss of $2,211,000, or approximately $0.01 per share, during the comparable period last year. The $942,000 decrease in net loss was primarily due to a $844,000 decrease in exploration and property holding costs and a $246,000 decrease in general and administrative expenses which was partially offset by a $201,000 increase in loss from discontinued operations, net of income tax expense.
Exploration and Property Holding Costs
Exploration and property holding costs decreased $844,000 to $588,000 for the three months ended April 30, 2014, compared to $1,432,000 for the comparable period last year. This decrease was mainly the result of not having a drilling program during the three months ended April 30, 2014, whereas in the comparable period last year we had a small underground drill program. In addition, we had a significantly reduced metallurgical program in the three months ended April 30, 2014 compared to the previous period. As a result of the reduced exploration program we reduced our work force at the Sierra Mojada Property, and therefore our staffing and consultants costs were lower in the three months ended April 30, 2014 compared to the comparable period last year. In addition, our exploration and property holding cost included a $325,000 concession impairment in the three months ended April 30, 2014 compared to a $633,000 concession impairment in the comparable period last year.
General and Administrative Costs
We recorded a general and administrative expense of $427,000 for the three months ended April 30, 2014 as compared to $673,000 for the comparable period last year. The $246,000 decrease was mainly the result of a $41,000 decrease in personal cost and a $208,000 decrease in office and administrative cost.
Stock-based compensation was a factor in the fluctuations in general and administrative expenses. Overall stock-based compensation included in general and administrative expense decreased to $35,000 for the three months ended April 30, 2014 from $67,000 for the comparable period last year. This was mainly due to stock options vesting in the three months ended April 30, 2014 having a lower fair value than stock options vesting in the comparable period last year.
Personnel costs decreased $41,000 to $152,000 for the three months ended April 30, 2014 as compared to $193,000 for the same period last year. This decrease was mainly due to a decrease in stock-based compensation expense to $22,000 in the three months ended April 30, 2014 from $46,000 in the comparable period last year.
Office and administrative costs decreased $208,000 to $128,000 for the three months ended April 30, 2014 as compared to $336,000 for the same period last year. The decrease was mainly the result of the Company having significant investor relations activities and corporate travel related to the February 2013 equity financing in the three months ended April 30, 2013.
Professional fees decreased $13,000 to $78,000 for the three months ended April 30, 2014 compared to $91,000 for the comparable period last year. This decrease is mainly due to a decrease in legal fees in the three months ended April 30, 2014.
Directors’ fees decreased $12,000 to $57,000 for the three months ended April 30, 2014 as compared to $69,000 for the comparable period last year. The decrease was primarily due to a $7,000 decrease in stock-based compensation as a result of stock options vesting in the three months ended April 30, 2014 having a lower fair value than stock options vesting in the comparable period last year.
We recorded a provision of $11,000 for uncollectible value-added taxes (“VAT”) for the three months ended April 30, 2014 compared to a recovery of $17,000 in the comparable period last year. The allowance for uncollectible taxes was estimated by management based upon a number of factors including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and Gabon and estimated net recovery after commissions.
Other Income (Expenses)
We recorded other income of $26,000 for the three months ended April 30, 2014 as compared to other expense of $4,000 for the comparable period last year. The significant factor was a $21,000 foreign currency transaction gain in the three months ended April 30, 2014 compared to a foreign currency transaction loss of $11,000 for the comparable period last year.
The foreign currency transaction gain in the three months ended April 30, 2014 was primarily the result of the appreciation of the Central African Franc and the resulting impact on the intercompany loans between Silver Bull and our Gabonese subsidiaries. The foreign currency transaction loss in the comparable period last year was primarily the result of the depreciation of the Central African Franc and the resulting impact on the intercompany loans between Silver Bull and our Gabonese subsidiaries.
Results of Discontinued Operations
Subject to the contingencies previously discussed, the Company expects to close the sale of its interest in Dome International and its wholly-owned subsidiary, Dome Gabon. Pursuant to generally accepted accounting principles in the United States of America, Dome International and Dome Gabon have been reported in discontinued operations for the three months ended April 30, 2014 and April 30, 2013 and the period from inception to date as described in the “Critical Accounting Policies” section. Loss from discontinued operations, net of income tax expense for the three months ended April 30, 2014 was $272,000, which is mainly a result of a $192,000 concession impairment related to the Ndjole concession and $86,000 for exploration and property holding costs, as compared to a loss from discontinued operations, net of income tax expense for the three months ended April 30, 2013 of $71,000 which is mainly the result of $38,000 of exploration and property holding costs.
Six Months Ended April 30, 2014 and April 30, 2013
For the six months ended April 30, 2014, we experienced a net loss of $2,347,000, or approximately $0.01 per share, compared to a net loss of $4,315,000, or approximately $0.03 per share, during the comparable period last year. The $1,968,000 decrease in the net loss was primarily due to a $1,653,000 decrease in exploration and property holding costs and a $498,000 decrease in general and administrative expenses as described below.
Exploration and Property Holding Costs
Exploration and property holding costs decreased $1,653,000 to $1,105,000 for the six months ended April 30, 2014 compared to $2,758,000 for the comparable period last year. This decrease was mainly the result of not having a drilling program during the six months ended April 30, 2014, whereas in the comparable period last year we had a small underground drill program. In addition, we had a significantly reduced metallurgical program in the six months ended April 30, 2014 compared to the previous period. As a result of the reduced exploration program we reduced our work force at the Sierra Mojada Property, and therefore our staffing and consultants costs were lower in the six months ended April 30, 2014 compared to the comparable period last year. In addition, our exploration and property holding costs included a $334,000 concession impairment in the six months ended April 30, 2014 compared to a $709,000 concession impairment in the comparable period last year.
General and Administrative Costs
General and administrative expenses decreased $498,000 to $953,000 for the six months ended April 30, 2014 as compared to $1,451,000 for the comparable period last year. This decrease was mainly the result of a $93,000 decrease in personal cost, a $323,000 decrease in office and administrative cost, a $55,000 decrease in professional costs and a $47,000 decrease in directors’ fees.
Stock based compensation was a factor in the fluctuations in general and administration expenses. Overall stock based compensation included in general and administrative expense decreased to $88,000 for the six months ended April 30, 2014 from $195,000 for the six months ended April 30, 2013. This was mainly due to stock options vesting in the six months ended April 30, 2014 having a lower fair value than stock options vesting in the comparable period last year.
Personnel costs decreased $93,000 to $333,000 for the six months ended April 30, 2014 as compared to $426,000 for the same period last year. This decrease was mainly due to a decrease in stock based compensation expense to $61,000 in the six months ended April, 30, 2014 from $125,000 in the comparable period last year.
Office and administrative expenses decreased $323,000 to $305,000 for the six months ended April 30, 2014 as compared to $628,000 for the comparable period last year. The decrease was mainly the result of the Company having significant investor relations activities and corporate travel related to the February 2013 equity financing in the six months ended April 30, 2013.
Professional services decreased $55,000 to $178,000 for the six months ended April 30, 2014 as compared to $233,000 for the comparable period last year. The decrease was primarily due to a decrease in legal and accounting fees in the six months ended April 30, 2014 from the comparable period last year.
Directors’ fees decreased $47,000 to $116,000 for the six months ended April 30, 2014 as compared to $163,000 for the comparable period last year. This decrease was primarily due to a $41,000 decrease in stock based compensation as a result of stock options vesting in the six months ended April 30, 2014 having a lower fair value than stock options vesting in the comparable period last year.
We recorded a provision of $19,000 for the six months ended April 30, 2014 for uncollectible VAT compared to a recovery of $1,000 in the comparable period last year. The allowance for uncollectible taxes was estimated by management based upon a number of factors including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and Gabon and estimated net recovery after commissions.
Other Income (Expenses)
Other income increased $12,000 to $56,000 for the six months ended April 30, 2014 as compared to $44,000 for the comparable period last year. The significant factors were a $5,000 foreign currency transaction gain and a $44,000 miscellaneous income in the six months ended April 30, 2014 as compared to a $33,000 foreign currency transaction gain and a $4,000 miscellaneous income for the comparable period last year.
The foreign currency transaction gain in the six months ended April 30, 2014 and 2013 was primarily the result of the appreciation of the Central African Franc and the resulting impact on the intercompany loans between Silver Bull and our Gabonese subsidiaries. The miscellaneous income in the six months ended April 30, 2014 was primarily the result of a $41,000 gain on the sale of a piece of mining equipment at the Sierra Mojada Property.
Results of Discontinued Operations
Subject to the contingencies previously discussed, the Company expects to close the sale of its interest in Dome International and its wholly-owned subsidiary, Dome Gabon. Pursuant to generally accepted accounting principles in the United States of America, Dome International and Dome Gabon have been reported in discontinued operations for the six months ended April 30, 2014, and April 30, 2013 and the period from inception to date as described in the “Critical Accounting Policies” section. Loss from discontinued operations, net of income tax expense for the six months ended April 30, 2014 was $334,000 which is mainly a result of a $192,000 concession impairment related to the Ndjole concession and $139,000 for exploration and property holding costs, as compared to a loss from discontinued operations, net of income tax expense for the six months ended April 30, 2013 of $110,000 which is the result of $113,000 of exploration and property holding costs.
Material Changes in Financial Condition; Liquidity and Capital Resources
Cash Flows
During the six months ended April 30, 2014, we primarily utilized cash and cash equivalents to fund exploration activities at the Sierra Mojada Property and for general and administrative expenses. As a result of the exploration activities and general and administrative expenses, cash and cash equivalents decreased from $5,206,000 at October 31, 2013 to $3,095,000 at April 30, 2014.
Cash flows used in operations for the six months ended April 30, 2014 was $1,975,000 as compared to $3,362,000 for the comparable period in 2013. This decrease was mainly due to the decreased exploration work at the Sierra Mojada Property and decreased general and administrative expenses.
Cash flows used in investing activity for the six months ended April 30, 2014 was $162,000 as compared to $217,000 for the comparable period in 2013. This decrease was mainly due to proceeds from sale of equipment of $86,000 in the six months ended April 30, 2014.
Cash flows provided by financing activities for the six months ended April 30, 2014 was $nil as compared to cash flows provided by financing activities of $8,127,000 for the comparable period last year. The majority of the cash flow provided by financing activities in the comparable period last year was due to the February 2013 equity financing.
Capital Resources
As of April 30, 2014, we had cash and cash equivalents of $3,095,000 and working capital of $4,059,000 as compared to cash and cash equivalents of $5,206,000 and working capital of $6,218,000 as of October 31, 2013. The decrease in our liquidity and working capital were primarily the result of the exploration activities at the Sierra Mojada Property and general and administrative expense.
Since inception, we have relied primarily upon proceeds from sales of our equity securities and warrant exercises as our primary sources of financing to fund our operations. We anticipate that we will continue to rely on sales of our securities in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing stockholders. There is no assurance that we will be able to complete any additional sales of our equity securities or that we will be able to arrange for other acceptable financing to fund our planned business activities.
Capital Requirements and Liquidity; Need for Subsequent Funding
Our management and Board of Directors monitor our overall costs, expenses, and financial resources and, if necessary, will adjust our planned operational expenditures in an attempt to ensure we have sufficient operating capital.
We continue to evaluate our costs and planned expenditures including for our Sierra Mojada Property as discussed below.
The continued exploration of the Sierra Mojada Property will require significant amounts of additional capital. In January 2014, our Board of Directors approved a calendar year 2014 budget of $1.8 million for the Sierra Mojada Property and a $1.8 million budget for general and administration expense. As of May 31, 2014, we had approximately $2.9 million of cash on hand, which does not include the expected gross proceeds less deposit received of $1.5 million from the sale of Dome International as discussed in the “Properties Concessions and Property Concessions Outlook” section. We anticipate that we will be able to satisfy our remaining calendar year 2014 budget with cash on hand. We will continue to evaluate our ability to raise additional capital, and we will reduce expenditures on the Sierra Mojada Property if we determine that additional capital is unavailable or available on terms that we determine are unacceptable. Also, the continued exploration and if warranted, development, of the Sierra Mojada Property ultimately will require us to raise additional capital, identify other sources of funding or identify another strategic transaction. The on-going uncertainty and volatility in the global financial and capital markets have limited the availability of funding. Debt or equity financing may not be available to us on acceptable terms, if at all. Equity financing, if available, will likely result in substantial dilution to existing stockholders. If we are unable to fund future operations by way of financing, including public or private offerings of equity or debt securities, our business, financial condition and results of operations will be adversely impacted.
Contractual Obligations
During the six months ended April 30, 2014, we amended the Poder de Dios, Anexas a Poder de Dios and Ampliacion a Poder de Dios concession option purchase agreement (the “Poder de Dios Agreement”).
Under the previous terms of the Poder de dios Agreement, an option payment of $300,000 was due in April 2014. As a result of amending the Poder de Dios Agreement, the April 2014 option payment was reduced to $10,000.
Off Balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.
Critical Accounting Policies
The critical accounting policies are defined in our Form 10-K for the year ended October 31, 2013 filed on January 13, 2014 except as follows.
Reclassifications
Certain reclassifications of prior year balances have been made to conform to the current year presentation. We reclassified the Dome International consolidated balance sheet amounts and consolidated statements of operations from historical presentation to assets and liabilities of operations held for sale on the consolidated balance sheets and to loss from discontinued operations in the consolidated statements of operations for all periods presented. The consolidated statements of cash flow have not been adjusted to reflect assets held for sale and discontinued operations for all periods presented.
Recent Accounting Pronouncements Adopted in the Six Month Period Ended April 30, 2014
Effective November 1, 2013, we adopted Accounting Standards Update (“ASU”) 2011-11,
"Balance Sheet (Topic 201): Disclosures about Offsetting Assets and Liabilities."
This ASU added certain additional disclosure requirements about financial instruments and derivative instruments that are subject to netting arrangements. The adoption of this guidance did not have a material impact on the disclosure requirements for our consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted
In July 2013, the Financial Accounting Standard Board (“FASB”) issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry Forward, a Similar Tax Loss, or a Tax Credit Carry Forward Exists.” The updated guidance requires an entity to net its unrecognized tax benefits against the deferred tax assets for all same jurisdiction net operating loss carry forwards, a similar tax loss, or tax credit carry forwards. A gross presentation will be required only if such carry forwards are not available or would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax provision. The update is effective prospectively for our fiscal year beginning November 1, 2014. We do not believe the adoption of this update will have a material impact on our financial position, results of operations or cash flows, and the disclosure requirements for our consolidated financial statements.
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” Under ASU 2014-08, only disposals representing a strategic shift in operations are presented as discontinued operations. In addition, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide additional information about the assets, liabilities, income, and expenses of discontinued operations. ASU 2014-08 also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014. We have not determined the effects of this update on our financial position, result of operations or cash flows and disclosures at this time.
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the SEC did not or are not believed to have a material impact on our present or future consolidated financial statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Interest Rate Risk
We hold substantially all of our cash and cash equivalents in bank and demand deposit accounts with major financial institutions. The interest rates received on these balances may fluctuate with changes in economic conditions. Based on the average cash and cash equivalent balances during the six months ended April 30, 2014, a 1% decrease in interest rates would have resulted in a reduction in interest income for the period of approximately $2,594.
Foreign Currency Exchange Risk
Certain purchases of labor, operating supplies and capital assets are denominated in $CDN, Mexican Pesos (“$MXN”), Central African Francs (“$CFA”) or other currencies. As a result, currency exchange fluctuations may impact the costs of our operations. Specifically, the appreciation of the $MXN, $CDN or $CFA against the U.S. dollar may result in an increase in operating expenses and capital costs in US dollar terms. As of April 30, 2014, we maintained the majority of our cash balance in U.S. dollars. We currently do not engage in any currency hedging activities.
Commodity Price Risk
Our primary business activity is the exploration of properties containing silver, zinc, lead, gold, copper, manganese and other minerals. As a result, decreases in the price of any of these metals have the potential to negatively impact our ability to establish reserves and continue our exploration plans. None of our properties are in production and we do not currently hold any commodity derivative positions.
ITEM 4. CONTROLS AND PROCEDURES.
(a)
Evaluation of Disclosure Controls and Procedures.
As of April 30, 2014, we have carried out an evaluation under the supervision of, and with the participation of our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on the evaluation as of April 30, 2014, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e)) under the Exchange Act) were effective.
Our disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
(b) Changes in
Internal Control Over Financial Reporting
During the quarter ended April 30, 2014 there have not been any changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II – OTHER INFORMATION.
Item 1. LEGAL PROCEEDINGS.
None.
Item 1A. RISK FACTORS.
There were no material changes from the risk factors included in our Form 10-K for the year ended October 31, 2013.
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
Recent Sales of Unregistered Securities
No sales of unregistered equity securities occurred during the period covered by this report.
Purchases of Equity Securities by the Company and Affiliated Purchasers
No purchases of equity securities were made by or on behalf of Silver Bull or any “affiliated purchaser” within the meaning of Rule 10b-18 under the Exchange Act during the period covered by this report.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
None.
Item 4. MINE SAFETY DISCLOSURES.
Not applicable.
Item 5. OTHER INFORMATION.
None.
Item 6. EXHIBITS.
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Incorporated by Reference
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Exhibit Number
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Exhibit Description
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Form
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Date
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Exhibit
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Filed Herewith
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31.1
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Certification of CEO Pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
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31.2
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Certification of CFO Pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
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32.1
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Certification of CEO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
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32.2
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Certification of CFO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
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101.INS*
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XBRL Instance Document
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101.SCH*
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XBRL Schema Document
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101.CAL*
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XBRL Calculation Linkbase Document
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101.DEF*
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XBRL Definition Linkbase Document
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101.LAB*
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XBRL Labels Linkbase Document
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101.PRE*
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XBRL Presentation Linkbase Document
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In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act, is deemed not filed for purposes of section 18 of the Exchange Act, and otherwise is not subject to liability under these sections.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SILVER BULL RESOURCES, INC.
Dated: June 06, 2014
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By
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/s/ Timothy Barry
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Timothy Barry
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President and Chief Executive Officer
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(Principal Executive Officer)
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Dated: June 06, 2014
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By
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/s/ Sean Fallis
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Sean Fallis
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Chief Financial Officer
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(Principal Financial Officer and Principal Accounting Officer)
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