Form 10-Q - Quarterly report [Sections 13 or 15(d)]

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED July 31, 2023.

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO _________.

Commission File Number: 001-33125

SILVER BULL RESOURCES, INC.

(Exact name of registrant as specified in its charter)

Nevada	91-1766677
State or other jurisdiction of incorporation or organization	(I.R.S. Employer Identification No.)

777 Dunsmuir Street, Suite 1605

Vancouver, B.C., Canada V7Y 1K4

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (604)-687-5800

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Smaller reporting company ☒
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of September 13, 2023, there were 35,680,652 shares of the registrant’s $0.01 par value common stock outstanding, the registrant’s only outstanding class of voting securities.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

TABLE OF CONTENTS

Page

PART I – FINANCIAL INFORMATION	3
ITEM 1. FINANCIAL STATEMENTS.	3
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	21
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	28
ITEM 4. CONTROLS AND PROCEDURES.	28
PART II – OTHER INFORMATION	29
ITEM 1. LEGAL PROCEEDINGS.	29
ITEM 1A. RISK FACTORS.	29
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.	29
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.	29
ITEM 4. MINE SAFETY DISCLOSURES.	29
ITEM 5. OTHER INFORMATION.	29
ITEM 6. EXHIBITS.	30
SIGNATURES	31

[The balance of this page has been intentionally left blank.]

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED BALANCE SHEETS

	July 31, 2023			October 31, 2022
		(Unaudited)			(Audited)
ASSETS

CURRENT ASSETS
Cash and cash equivalents (Notes 1 and 13)	$	241,213		$	886,728
Other receivables		5,153			2,834
Prepaid expenses and deposits		23,497			49,537
Due from related party (Note 5)		2,790			23,196
Total Current Assets		272,653			962,295


Value-added tax receivable, net of allowance for uncollectible taxes of $584,245 and $449,219, respectively (Note 6)		109,714			127,036
Office and mining equipment, net (Note 7)		133,380			143,568
Property concessions (Note 8)		5,004,386			5,019,927
TOTAL ASSETS	$	5,520,133		$	6,252,826

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable	$	332,394		$	159,585
Accrued liabilities and expenses		418,707			179,607
Income tax payable		2,500			3,000
Loan payable (Note 10)		45,534			—
Total Current Liabilities		799,135			342,192

Loan payable (Note 10)		—			43,959
TOTAL LIABILITIES	$	799,135		$	386,151

COMMITMENTS AND CONTINGENCIES (Note 15)

STOCKHOLDERS’ EQUITY (Notes 4, 11, 12 and 13)
Common stock, $0.01 par value; 150,000,000 shares authorized, 35,680,652 and 35,055,652 shares issued and outstanding, respectively		2,424,665			2,418,415
Additional paid-in capital		140,898,524			140,750,310
Accumulated deficit		(138,694,439	)		(137,394,298	)
Other comprehensive income		92,248			92,248
Total Stockholders’ Equity		4,720,998			5,866,675

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,520,133		$	6,252,826

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)

	Three Months Ended July 31,						Nine Months Ended July 31,
	2023			2022			2023			2022

REVENUES	$	—		$	—		$	—		$	—

EXPLORATION AND PROPERTY HOLDING COSTS
Exploration and property holding costs		122,490			104,767			277,955			266,548
Depreciation (Note 7)		2,850			4,923			10,188			15,649
Concession impairment (Note 8)		—			—			15,541			—
Goodwill impairment (Note 9)		—			—			—			2,058,031
TOTAL EXPLORATION AND PROPERTY HOLDING COSTS		125,340			109,690			303,684			2,340,228

GENERAL AND ADMINISTRATIVE EXPENSES
Personnel		47,114			87,959			242,794			367,610
Office and administrative		61,903			60,809			162,334			192,031
Professional services (Note 1)		178,662			18,287			444,909			136,839
Directors’ fees		26,495			37,325			86,645			126,195
Provision for uncollectible value-added taxes (Note 6)		39,098			2,181			49,532			11,483
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES		353,272			206,561			986,214			834,158

LOSS FROM OPERATIONS		(478,612	)		(316,251	)		(1,289,898	)		(3,174,386	)

OTHER INCOME (EXPENSES)
Interest income		3,229			3,608			16,320			3,619
Foreign currency transaction loss		(95	)		(1,772	)		(5,491	)		(20,127	)
Other costs (Note 14)		—			—			(19,355	)		—
Other income		—			1,050			—			1,050
Gain on investment (Note 1)		—			301,493			—			301,493
TOTAL OTHER INCOME (EXPENSES)		3,134			304,379			(8,526	)		286,035

LOSS BEFORE INCOME TAXES		(475,478	)		(11,872	)		(1,298,424	)		(2,888,351	)

INCOME TAX EXPENSE		(1,000	)		(3,020	)		(1,717	)		(4,520	)

NET AND COMPREHENSIVE LOSS		(476,478	)		(14,892	)		(1,300,141	)		(2,892,871	)

BASIC AND DILUTED NET LOSS PER COMMON SHARE	$	(0.01	)	$	(0.00	)	$	(0.04	)	$	(0.08	)
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES (Note 13)		35,680,652			35,055,652			35,385,322			34,852,898

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

	Common Stock
	Number of Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Other Comprehensive Income		Total Stockholders’ Equity

Nine months ended July 31, 2023
Balance, October 31, 2022	35,055,652	$	2,418,415	$	140,750,310	$	(137,394,298	)	$	92,248	$	5,866,675
Issuance of common stock as follows:
- For compensation at $0.14 per share (Note 11)	625,000		6,250		82,161		—			—		88,411
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 12)	—		—		66,053		—			—		66,053
Net loss for the nine-month period ended July 31, 2023	—		—		—		(1,300,141	)		—		(1,300,141	)
Balance, July 31, 2023	35,680,652	$	2,424,665	$	140,898,524	$	(138,694,439	)	$	92,248	$	4,720,998

	Common Stock
	Number of Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Other Comprehensive Income		Total Stockholders’ Equity

Three months ended July 31, 2023
Balance, April 30, 2023	35,055,652	$	2,424,665	$	140,883,647	$	(138,217,961	)	$	92,248	$	5,182,599
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 12)	—		—		14,877		—			—		14,877
Net loss for the three-month period ended July 31, 2023	—		—		—		(476,478	)		—		(476,478	)
Balance, July 31, 2023	35,680,652	$	2,424,665	$	140,898,524	$	(138,694,439	)	$	92,248	$	4,720,998

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (CONTINUED) (Unaudited)

	Common Stock
	Number of Shares		Amount		Additional Paid-in Capital	Accumulated Deficit			Other Comprehensive Income		Total Stockholders’ Equity
Nine months ended July 31, 2022
Balance, October 31, 2021	34,547,838	$	2,413,337	$	139,803,515	(134,226,099		$	92,248	$	8,083,001
Issuance of common stock as follows: - For compensation at $0.25 per share (Note 11)	507,814		5,078		123,016	—			—		128,094
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees and advisors (Note 12)	—		—		251,429	—			—		251,429
Net loss for the nine-month period ended July 31, 2022	—		—		—	(2,892,871			—		(2,892,871	)
Balance, July 31, 2022	35,055,652	$	2,418,415	$	140,177,960	(137,118,970	)	$	92,248	$	5,569,653

	Common Stock
	Number of Shares		Amount		Additional Paid-in Capital	Accumulated Deficit			Other Comprehensive Income		Total Stockholders’ Equity
Three months ended July 31, 2022
Balance, April 30, 2022	35,055,652	$	2,418,415	$	140,123,611	(137,104,078	)	$	92,248	$	5,530,196
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees and advisors (Note 12)	—		—		54,349	—			—		54,349
Net loss for the three-month period ended July 31, 2022	—		—		—	(14,892	)		—		(14,892	)
Balance, July 31, 2022	35,055,652	$	2,418,415	$	140,177,960	(137,118,970	)	$	92,248	$	5,569,653

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Nine Months Ended July 31,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(1,300,141	)	$	(2,892,871	)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation (Note 7)		10,188			15,649
Concessions impairment (Note 8)		15,541			—
Goodwill impairment (Note 9)		—			2,058,031
Provision for uncollectible value-added taxes (Note 6)		49,532			11,483
Foreign currency transaction (income) loss		(204	)		21,893
Stock options issued for compensation (Note 12)		66,053			251,429
Shares of common stock issued for services (Note 11)		88,411			128,094
Realized share of net gain of investment		—			(301,493	)
Changes in operating assets and liabilities:
Value-added tax receivable (Note 6)		(9,954	)		(12,186	)
Other receivables		(2,298	)		4,456
Prepaid expenses and deposits		26,873			170,822
Accounts payable		168,773			(302,712	)
Accrued liabilities and expenses		221,805			(142,256	)
Due from related party (Note 5)		20,406			437
Income tax payable		(500	)		2,000
Net cash used in operating activities		(645,515	)		(987,224	)

CASH FLOWS FROM INVESTING ACTIVITY:
Proceeds from sale of investments, net of costs (Note 1)		—			1,434,113
Net cash provided by investing activity		—			1,434,113

CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash provided by financing activities		—			—

Effect of exchange rates on cash and cash equivalents		—			(4,564	)

Net (decrease) increase in cash and cash equivalents		(645,515	)		442,325

Cash and cash equivalents beginning of period		886,728			189,607

Cash and cash equivalents end of period	$	241,213		$	631,932

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)

	Nine Months Ended July 31,
	2023		2022

SUPPLEMENTAL CASH FLOW DISCLOSURES:

Income taxes paid	$	2,249	$	2,220
Interest paid	$	—	$	—

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

Silver Bull Resources, Inc. (the “Company”) was incorporated in the State of Nevada on November 8, 1993 as the Cadgie Company for the purpose of acquiring and developing mineral properties. The Cadgie Company was a spin-off from its predecessor, Precious Metal Mines, Inc. On June 28, 1996, the Company’s name was changed to Metalline Mining Company. On April 21, 2011, the Company’s name was changed to Silver Bull Resources, Inc. The Company’s fiscal year-end is October 31. The Company has not realized any revenues from its planned operations and is considered an exploration stage company. The Company has not established any reserves with respect to its exploration projects and is not expected to enter into the development stage with respect to any of its projects.

The Company owns a number of property concessions located in Coahuila, Mexico (collectively known as the “Sierra Mojada Property”). The Company conducts its operations in Mexico through its wholly-owned subsidiary corporations, Minera Metalin S.A. de C.V. (“Minera Metalin”) and Minas de Coahuila SBR S.A. de C.V. (“Minas”).

On April 16, 2010, Metalline Mining Delaware, Inc., a wholly-owned subsidiary of the Company incorporated in the State of Delaware, was merged with and into Dome Ventures Corporation (“Dome”), a Delaware corporation. As a result, Dome became a wholly-owned subsidiary of the Company. Dome has a wholly-owned subsidiary Dome Asia Inc., incorporated in the British Virgin Islands.

On April 23, 2023, Nomad Minerals Ltd. (“Nomad Minerals"), a wholly-owned subsidiary of the Company, was incorporated in British Columbia, Canada. On April 28, 2023, Nomad Metals Limited was incorporated at Astana International Financial Centre in Astana, Republic of Kazakhstan, as a wholly-owned subsidiary of Nomad Minerals.

The Company’s efforts and expenditures had been concentrated on the exploration of properties, principally in the Sierra Mojada Property located in Coahuila, Mexico (the “Sierra Mojada Project”). The Company has not determined whether its exploration properties contain ore reserves that are economically recoverable. The ultimate realization of the Company’s investment in exploration properties is dependent upon the success of future property sales, the existence of economically recoverable reserves, and the ability of the Company to obtain financing or make other arrangements for exploration, development, and future profitable production activities. The ultimate realization of the Company’s investment in exploration properties cannot be determined at this time.

The Company is presently pursuing an Arbitration Claim (the “Arbitration” or the “Claim”) against the United Mexican States (“Mexico”). The Arbitration arises from Mexico’s unlawful expropriation and other unlawful treatment of Silver Bull and its investments resulting from the illegal blockade of Silver Bull’s Sierra Mojada Property. The Company is continuing to seek out other exploration projects for potential development and investment.

Illegal Blockade of Sierra Mojada Property and Arbitration

The Company’s efforts and expenditures have been concentrated on the exploration of properties, principally with respect to the Sierra Mojada Property located in Coahuila, Mexico.

On June 1, 2018, the Company and its subsidiaries Minera Metalin and Contratistas de Sierra Mojada S.A. de C.V. entered into an earn-in option agreement (the “South32 Option Agreement”) with South32 International Investment Holdings Pty Ltd (“South32”), a wholly-owned subsidiary of South32 Limited (ASX/JSE/LSE: S32), whereby South32 was able to obtain an option to purchase 70% of the shares of Minera Metalin (the “South32 Option”).

On October 11, 2019, the Company and its subsidiary Minera Metalin issued a notice of force majeure to South32 pursuant to the South32 Option Agreement. Due to an illegal blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (“Mineros Norteños”), the Company halted all work on the Sierra Mojada Property. The notice of force majeure was issued because the Company and its subsidiary Minera Metalin was unable to perform their obligations under the South32 Option Agreement due to the blockade. Pursuant to the South32 Option Agreement, any time period provided for in the South32 Option Agreement was to be generally extended by a period equal to the period of delay caused by the event of force majeure.

On August 31, 2022, due to the ongoing blockade of the site, the South32 Option Agreement was mutually terminated by South32 and the Company.

No portion of the equity value of the Company was classified as temporary equity as the South32 Option had no intrinsic value. South32 paid $518,000 to the Company as a final payment for the exploration costs incurred by the Company during the blockade and the Company released South32 from all of claims as of the date of termination.

As of September 13, 2023, the blockade by Mineros Norteños at, on and around the Sierra Mojada Property is ongoing, and the Company remains unable to access the Sierra Mojada Property.

On March 2, 2023, the Company filed a Notice of Intent with Mexico’s Directorate General of Foreign Investment to initiate a legacy NAFTA claim under Annex 14-C of the United States-Mexico-Canada Agreement to recover economic damages resulting from the illegal blockade of the Sierra Mojada Property by Mineros Norteños (“NAFTA Notice of Intent”). The Company has been unable to access the project since the illegal blockade commenced in September 2019. Despite numerous demands and requests for action by the Company, Mexican governmental agencies have allowed this unlawful behaviour to continue and, as such, failed to protect the Company’s investment.

On June 29, 2023, the Company filed the request for arbitration (the “Request”) in the legacy NAFTA claim at the International Centre for Settlement of Investment Dispute (the “ICSID”) and commenced international arbitration proceedings against Mexico under the Agreement between the United States of America, Mexico, and Canada (the “USMCA”) and the NAFTA.

Arras Minerals Corp. Spin-Off

On August 12, 2020, the Company entered into an option agreement (the “Beskauga Option Agreement”) with Copperbelt AG, a corporation existing under the laws of Switzerland (“Copperbelt Parent”), and Dostyk LLP, an entity existing under the laws of Kazakhstan and a wholly-owned subsidiary of Copperbelt (the “Copperbelt Sub,” and together with Copperbelt Parent, “Copperbelt”), pursuant to which the Company has the exclusive right and option to acquire Copperbelt’s right, title and 100% interest in the Beskauga property located in Kazakhstan (the “Beskauga Property”), which consists of the Beskauga Main project (the “Beskauga Main Project”) and the Beskauga South project (the “Beskauga South Project,” and together the Beskauga Main Project, the “Beskauga Project”). The transaction contemplated by the Beskauga Option Agreement closed on January 26, 2021.

On February 5, 2021, Arras Minerals Corp. (“Arras”) was incorporated in British Columbia, Canada, as a wholly-owned subsidiary of the Company. On March 19, 2021, pursuant to an asset purchase agreement with Arras, the Company transferred its right, title and interest in and to the Beskauga Option Agreement, among other things, to Arras in exchange for 36,000,000 common shares of Arras. On September 24, 2021, the Company distributed to its shareholders one Arras common share for each Silver Bull share held by such shareholders, or 34,547,838 Arras shares in total. Upon completion of the distribution, the Company retained 1,452,162 Arras common shares as a strategic investment and Arras became a stand-alone company.

In December 2021 and June 2022, the Company sold 600,000 and 852,262 common shares of Arras at a price of $CDN 1.00 and $CDN 1.50 per shares, respectively. The Company has no interest in Arras as of July 31, 2023.

Exploration Stage

The Company has established the existence of mineral resources for the Sierra Mojada Project. The Company has not established proven or probable reserves, as defined by the United States Securities and the U.S. Securities and Exchange Commission (the “SEC”) subpart 1300 of Regulation S-K (“S-K 1300”), through the completion of a “final” or “bankable” feasibility study for Sierra Mojada Project. Furthermore, the Company has no plans to establish proven or probable reserves for Sierra Mojada Project. As a result, and despite the fact that the Company commenced extraction of mineral resources at the Sierra Mojada Property, the Company remains an exploration stage company, as defined by the SEC.

Beginning with the Company’s annual report on Form 10-K for the year ended October 31, 2022, the Company reports its mineral resources in accordance with S-K 1300.

Going Concern

Since its inception in November 1993, the Company has yet to generate revenue and has incurred an accumulated deficit of $138,694,000. Accordingly, the Company has not generated cash flows from operations. Since inception, the Company has relied primarily upon proceeds from private placements and registered direct offerings of the Company’s equity securities, sales of investments and warrant exercises as the primary sources of financing to fund the Company’s operations. As of July 31, 2023, the Company had cash and cash equivalents of approximately $241,000. With respect to the anticipated costs associated with the aforementioned arbitration, as of September 5, 2023, the Company has secured third-party arbitration finance from Bench Walk Advisors LLC (“Bench Walk” or the “Funder”) in an amount of up to $9.5 million. The funding has been completed as purchase of a contingent entitlement to damages in the event that a damages award is recovered from Mexico (Note 16).

Despite the arbitration finance in place, based on the Company’s limited cash and cash equivalents which are less than the Company’s liabilities at July 31, 2023, as well as the history of losses, there remains substantial doubt as to whether the Company’s existing cash resources are sufficient to enable the Company to continue its operations for the next 12 months as a going concern. Management plans to pursue possible financing and strategic options, including, but not limited to, obtaining additional equity financing, and the exercising of warrants by warrantholders. However, there is no assurance that the Company will be successful in pursuing these plans.

These interim condensed consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary in the event the Company can no longer continue as a going concern. Such adjustments could be material.

NOTE 2 – BASIS OF PRESENTATION

The Company’s interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules of the SEC regarding interim reporting. All intercompany transactions and balances have been eliminated during consolidation. Certain information and note disclosures typically included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet at October 31, 2022, was derived from the audited consolidated financial statements. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended October 31, 2022.

All figures are in United States dollars unless otherwise noted.

The interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, the interim condensed consolidated financial statements furnished herein include all adjustments, all of which are of a routine recurring nature, necessary for a fair statement of the results for the interim periods presented. Uncertainties with respect to estimates and assumptions are inherent in the preparation of the Company’s interim condensed consolidated financial statements. Accordingly, operating results for the nine months ended July 31, 2023, are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2023, or any future period.

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies are defined in the Company’s Annual Report on Form 10-K for the year ended October 31, 2022 filed with the SEC on January 26, 2023.

Other recent accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) (including its Emerging Issues Task Force) and the SEC did not or are not expected to have a significant impact on the Company’s present or future consolidated financial statements.

NOTE 4 – NET LOSS PER SHARE

The Company had stock options and warrants outstanding at July 31, 2023 and 2022 that upon exercise were issuable into 4,371,289 and 5,165,039 shares of the Company’s common stock, respectively. They were not included in the calculation of loss per share because they would have been anti-dilutive.

NOTE 5 – DUE FROM RELATED PARTY

As of July 31, 2023, due from related party consists of $2,790 (October 31, 2022 - $23,196) due from Arras for shared employees’ salaries and office expenses. This amount is non-interest bearing and is to be repaid on demand.

NOTE 6 – VALUE-ADDED TAX RECEIVABLE

Value-added tax (“VAT”) receivable relates to VAT paid in Mexico. The Company estimates a net VAT of $109,714 (October 31, 2022 - $127,036) will be received and believes that it remains legally entitled to be refunded the full amount of the VAT receivable and intends to rigorously continue its VAT recovery efforts. While the Company continues to pursue recovery from the Mexican government, the outcomes and process for recovering VAT can be lengthy and unpredictable based on the continued failure to recover the VAT receivable and a recent preliminary unfavorable ruling from the Mexican tax authority, which the Company is in the process of challenging. The allowance for uncollectible VAT was estimated by management based upon several factors, including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and estimated net recovery after commissions.

A summary of the changes in the allowance for uncollectible VAT for the nine months ended July 31, 2023, is as follows:

Allowance for uncollectible VAT – October 31, 2022	$	449,219
Provision for VAT receivable allowance		49,532
Foreign currency translation adjustment		85,494
Allowance for uncollectible VAT – July 31, 2023	$	584,245

NOTE 7 – OFFICE AND MINING EQUIPMENT

The following is a summary of the Company’s office and mining equipment at July 31, 2023 and October 31, 2022, respectively:

	July 31,			October 31,
	2023			2022

Mining equipment	$	396,153		$	396,153
Vehicles		92,873			92,873
Buildings and structures		185,724			185,724
Computer equipment and software		74,236			74,236
Well equipment		39,637			39,637
Office equipment		47,597			47,597
		836,220			836,220
Less: Accumulated depreciation		(702,840	)		(692,652	)
Office and mining equipment, net	$	133,380		$	143,568

NOTE 8 – PROPERTY CONCESSIONS

The following is a summary of the Company’s property concessions for the Sierra Mojada Property as at July 31, 2023 and October 31, 2022:

Property concessions – October 31, 2022	$	5,019,927
Impairment		(15,541	)
Property concessions – July 31, 2023	$	5,004,386

During the nine months ended July 31, 2023, the Company decided to withdraw certain concession applications in Sierra Mojada, Mexico. As a result, the Company no longer has the right to these property concessions and the value in use is $nil. Accordingly, the Company has written off the capitalized property concession balance related to these concessions of $15,541 in accordance with level 3 of the fair value hierarchy.

If the blockade at Sierra Mojada Property continues, further impairment of property concessions is possible.

NOTE 9 – GOODWILL

Goodwill represents the excess, at the date of acquisition, of the purchase price of the business acquired over the fair value of the net tangible and intangible assets acquired. The Company’s inability to advance the Sierra Mojada Project due to the ongoing blockade has resulted in a sustained decrease in the value of the Company’s common stock. As such, the Company concluded that this constituted an indication of impairment of goodwill. On April 30, 2022, the Company elected to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Based on this assessment, management determined it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company recorded a goodwill impairment of $2,058,031 during the nine months period ended July 31, 2022. If the blockade at Sierra Mojada Project continues then further impairment of other long-lived assets is possible.

The following is a summary of the Company’s goodwill balance as of July 31, 2022 and October 31, 2021:

Goodwill – October 31, 2021	$	2,058,031
Impairment		(2,058,031	)
Goodwill – April 30, 2022	$	—

NOTE 10 – LOAN PAYABLE

In June 2020, the Company received $29,531 ($CDN 40,000) in the form of a Canada Emergency Business Account (“CEBA”) loan. CEBA is part of the economic assistance program launched by the Government of Canada to ensure that businesses have access to capital during the COVID-19 pandemic that can only be used to pay non-deferrable operating expenses. During the period from receipt of the CEBA loan to December 31, 2022 (the “Initial Term”), no interest will be charged on the principal amount outstanding. If at least $CDN 30,000 is repaid on or before the end of the Initial Term, the remaining $CDN 10,000 of principal will be forgiven pursuant to the terms of the CEBA loan. During the period from January 1, 2023 to December 31, 2025 (the “Extended Term”), if any portion of the loan remains outstanding, interest will be payable monthly at a rate of 5% per annum on the outstanding principal balance.

In January 2021, the Company received an additional $15,615 ($CDN 20,000) CEBA loan. Fifty percent (50%) of the additional loan is forgivable if repaid by December 31, 2022. The loan accrues no interest before the end of the Initial Term, and thereafter converts to a three-year term loan with a 5% annual interest rate. Any portion of the loan is repayable without penalty at any time prior to December 31, 2025. The total CEBA loan amount stands at $CDN 60,000 with $CDN 20,000 forgivable if repaid by December 31, 2022. In January 2022, the repayment deadline for the CEBA loan to qualify for loan forgiveness was extended to December 31, 2023.

The balance of the CEBA loan is fully repayable on or before the end of the Extended Term, if not repaid on or before the end of the Initial Term. The Company anticipates repaying the CEBA loan prior to the Initial Term date. An income will be recognized in the period when the CEBA loan is forgiven.

Loan payable – October 31, 2022	$	43,959
Foreign currency translation adjustment		1,575
Loan payable – July 31, 2023	$	45,534

NOTE 11– COMMON STOCK

On March 9, 2023, the Company issued 625,000 shares of common stock at an average of $0.14 per share of common stock as payment of accrued management bonuses in the amount of $88,411 ($CDN121,875).

On February 17, 2022, the Company issued 507,814 shares of common stock at an average of $0.25 per share of common stock as payment of accrued management bonuses in the amount of $128,094 ($CDN162,500).

NOTE 12 – STOCK OPTIONS

The Company has one stock option plan under which equity securities are authorized for issuance to officers, directors, employees and advisors: the 2019 Stock Option and Stock Bonus Plan (the “2019 Plan”). The 2019 Plan was amended on April 19, 2022 (the “Amended 2019 Plan”). Under the Amended 2019 Plan, 10% of the total shares outstanding are reserved for issuance upon the exercise of options or the grant of stock bonuses, to a maximum of 15,000,000 shares.

Options are typically granted with an exercise price equal to the closing market price of the Company’s stock at the date of grant, have a graded vesting schedule over two years and have a contractual term of five years.

During the nine months period ended July 31, 2023, the Company granted options to acquire 150,000 shares of common stock with a weighted-average grant-date fair value of $0.07 per share.

No options were exercised during the nine months ended July 31, 2023.

During the nine months period ended July 31, 2022, the Company granted options to acquire 3,300,000 shares of common stock with a weighted-average grant-date fair value of $0.14 per share.

No options were exercised during the nine months ended July 31, 2022.

A summary of the range of assumptions used to value stock options granted for the nine months ended July 31, 2023 and 2022 are as follows:

	Nine Months Ended July 31,
Options	2023	2022

Expected volatility	74% – 81%	81% – 87%
Risk-free interest rate	3.83% – 3.96%	1.60% – 1.74%
Dividend yield	—	—
Expected term (in years)	2.50 – 3.50	2.50 – 3.50

The expected volatility assumption is based on the historical of common stock price. The risk-free interest rate assumption is based on yield curves on government zero-coupon bonds with a remaining term equal to the stock options’ expected life. The Company has not paid and does not anticipate paying dividends on its common stock. Companies are required to utilize an estimated forfeiture rate when calculating the expense for the reporting period. Based on the best estimate, the Company applied the estimated forfeiture rate of 0% in determining the expense recorded in the accompanying statements of comprehensive loss.

The following is a summary of stock option activity for the nine months ended July 31, 2023:

Options		Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value

	Outstanding at October 31, 2022		3,193,750		$	0.25		4.25	$	—
	Granted		150,000			0.14
	Cancelled		(300,000	)		0.24
	Expired		(643,750	)		1.27
	Outstanding at July 31, 2023		2,400,000			0.23		3.62		—
	Exercisable at July 31, 2023		1,550,000		$	0.23		2.59	$	—

The Company recognized stock-based compensation costs for stock options of $66,053 and $251,429 for the nine months ended July 31, 2023 and 2022, respectively. As of July 31, 2023, there was $32,552 of total unrecognized compensation expense.

Summarized information about stock options outstanding and exercisable at July 31, 2023 is as follows:

	Options Outstanding					Options Exercisable
	Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price	Number Exercisable		Weighted Average Exercise Price
$	0.24	2,250,000	3.56	$	0.24	1,500,000	$	0.24
	0.14	150,000	4.62		0.14	50,000		0.14

NOTE 13 – WARRANTS

A summary of warrant activity for the nine months ended July 31, 2023 is as follows:

Warrants	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value

Outstanding and exercisable at October 31, 2022		1,971,289	$	0.59		2.99	$	—
Outstanding and exercisable at July 31, 2023*		1,971,289		0.59		2.25		—

* Pursuant to the terms of the Separation and Distribution Agreement, dated as of August 31, 2021, between Silver Bull and Arras entered into in connection with the Distribution (Note 1), 1,971,289 warrants with a weighted average exercise price of $0.59 are exercisable into one share of common stock of the Company and one common share of Arras. The Company will receive $0.34 of the proceeds from the exercise of each of these warrants and the remaining proceeds will be paid to Arras.

No warrants were issued or exercised during the nine months ended July 31, 2023 or 2022.

Summarized information about warrants outstanding and exercisable at July 31, 2023 is as follows:

Warrants Outstanding and Exercisable

Exercise Price

Number

Outstanding

Weighted Average Remaining Contractual Life (Years)

Weighted Average Exercise Price

0.59

1,971,289

2.25

0.59

NOTE 14 – FINANCIAL INSTRUMENTS

Fair Value Measurements

All financial assets and financial liabilities are recorded at fair value on initial recognition. Transaction costs are expensed when incurred, unless they are directly attributable to the acquisition of financial assets or the assumption of liabilities carried at amortized cost, in which case the transaction costs adjust the carrying amount.

The three levels of the fair value hierarchy are as follows:

	Level 1	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
	Level 2	Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
	Level 3	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Under fair value accounting, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of cash and cash equivalents, accounts payable, due from related party and loan payable.

The carrying amounts of cash and cash equivalents, accounts payable and due from related party approximate fair value at July 31, 2023 and October 31, 2022 due to the short maturities of these financial instruments. Loan payable is classified as Level 2 in the fair value hierarchy.

Credit Risk

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. To mitigate exposure to credit risk on financial assets, the Company has established policies to ensure the liquidity of funds and ensure that counterparties demonstrate acceptable levels of creditworthiness.

The Company maintains its U.S. dollar and Canadian dollar cash and cash equivalents in bank and demand deposit accounts with major financial institutions with high credit standings. Cash deposits held in Canada are insured by the Canada Deposit Insurance Corporation (“CDIC”) for up to $CDN 100,000. Certain Canadian bank accounts held by the Company exceed these federally insured limits or are uninsured as they relate to U.S. dollar deposits held in Canadian financial institutions. As of July 31, 2023, and October 31, 2022, the Company’s cash and cash equivalent balances held in Canadian financial institutions included $165,144 and $802,761, respectively, which was not insured by the CDIC. The Company has not experienced any losses on such accounts, and management believes that using major financial institutions with high credit ratings mitigates the credit risk to cash and cash equivalents.

In February 2023, a cash balance of $19,355 ($MXN 349,884) was subject to seizure by the Mexican government due to a dispute over certain years’ VAT and corporate tax. As a result, the Company does not maintain cash in bank accounts in Mexico as of July 31, 2023. These accounts were denominated in the local currency and are considered uninsured. As of July 31, 2023 and October 31, 2022, the U.S. dollar equivalent balance for these accounts was $nil and $10,702, respectively.

As at July 31, 2023 and October 31, 2022, cash and cash equivalents consist of guaranteed investment certificates of $139,637 and $369,551, respectively, held in bank accounts.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying its financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows from operations and anticipating investing and financing activities. As at July 31, 2023, the Company had working capital deficiency of $526,482 and cash and cash equivalents of $241,213 and is exposed to significant liquidity risk at this time. Furthermore, as the Company is in the exploration stage, it will periodically have to raise funds to continue operations and intends to raise further financing through equity offerings.

Accounts payable and accrued liabilities are non-interest-bearing and are typically settled on 30-day terms.

Interest Rate Risk

The Company holds substantially all of its 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 nine months ended July 31, 2023, a 1% decrease in interest rates would have resulted in a reduction of approximately $3,437 in interest income for the period.

Foreign Currency Exchange Risk

Certain purchases of labor, operating supplies and capital assets are denominated in $CDN, $MXN or other currencies. As a result, currency exchange fluctuations may impact the costs of the Company’s operations. Specifically, the appreciation of the $MXN or $CDN against the U.S. dollar may result in an increase in operating expenses and capital costs in U.S. dollar terms. The Company currently does not engage in any currency hedging activities.

Based on the net exposures as at July 31, 2023, a 5% depreciation or appreciation of the $CDN and $MXN against the US dollar would result in an increase and decrease, respectively, of approximately $25,000 in the Company’s net income.

NOTE 15 – COMMITMENTS AND CONTINGENCIES

Compliance with Environmental Regulations

The Company’s exploration activities are subject to laws and regulations controlling not only the exploration and mining of mineral properties but also the effect of such activities on the environment. Compliance with such laws and regulations may necessitate additional capital outlays or affect the economics of a project, and cause changes or delays in the Company’s activities.

Property Concessions in Mexico

To properly maintain property concessions in Mexico, the Company is required to pay a semi-annual fee to the Mexican government and complete annual assessment work.

Royalty

The Company has agreed to pay a 2% net smelter return royalty on certain property concessions within the Sierra Mojada Property based on the revenue generated from production. Total payments under this royalty are limited to $6.875 million (the “Royalty”). To date, no royalties have been paid.

Litigation and Claims

Mineros Norteños Case

On May 20, 2014, Mineros Norteños filed an action in the Local First Civil Court in the District of Morelos, State of Chihuahua, Mexico, against the Company’s subsidiary, Minera Metalin, claiming that Minera Metalin breached an agreement regarding the development of the Sierra Mojada Property. Mineros Norteños sought payment of the Royalty, including interest at a rate of 6% per annum since August 30, 2004, even though no revenue has been produced from the applicable mining concessions. It also sought payment of wages to the cooperative’s members since August 30, 2004, even though none of the individuals were hired or performed work for Minera Metalin under this agreement and Minera Metalin did not commit to hiring them. On January 19, 2015, the case was moved to the Third District Court (of federal jurisdiction). On October 4, 2017, the court ruled that Mineros Norteños was time barred from bringing the case. On October 19, 2017, Mineros Norteños appealed this ruling. On July 31, 2019, the Federal Appeals Court upheld the original ruling. This ruling was subsequently challenged by Mineros Norteños and on January 24, 2020, the Federal Circuit Court ruled that the Federal Appeals Court must consider additional factors in its ruling. In March 2020, the Federal Appeals Court upheld the original ruling after considering these additional factors. In August 2020, Mineros Norteños appealed this ruling, which appeal the Company timely responded and objected to on October 5, 2020. On March 26, 2021, the Federal Circuit Court issued a final and conclusive resolution, affirming the Federal Appeals Court decision. Despite the judgments in favour of the Company, Mineros Norteños has continued to block access to the facilities at Sierra Mojada since September 2019. The Company has filed criminal complaints with the State of Coahuila, federal and state authorities have been contacted to intervene and terminate the blockade, and the Company has attempted to negotiate with Mineros Norteños, without resolution to date. The Company has not accrued any amounts in its condensed interim consolidated financial statements with respect to this claim.

Legacy Investment Claim Under the North American Free Trade Agreement (“NAFTA”)

On March 2, 2023, the Company filed a Notice of Intent with Mexico’s Directorate General of Foreign Investment to initiate a legacy NAFTA claim under Annex 14-C of the United States-Mexico-Canada Agreement to recover economic damages resulting from the illegal blockade of the Sierra Mojada Property by Mineros Norteños (Note 1). On May 30, 2023, the Company attended a meeting with Mexican government officials in Mexico City, no settlement had been reached and the Request in the legacy NAFTA claim was filed with the ICSID on June 29, 2023.

The Company has engaged Boies Schiller Flexner (UK) LLP as its legal advisers on the legacy NAFTA claim. To support the legacy NAFTA claim, the Company engaged an arbitration consultant, who, upon a successful arbitration ruling, is to receive an arbitration fee amounting to 6% of the net amount of the award by ICSID less all associated direct costs incurred by the Company.

Valdez Case

On February 15, 2016, Messrs. Jaime Valdez Farias and Maria Asuncion Perez Alonso (collectively, “Valdez”) filed an action before the Local First Civil Court of Torreon, State of Coahuila, Mexico, against the Company’s subsidiary, Minera Metalin, claiming that Minera Metalin had breached an agreement regarding the development of the Sierra Mojada Property. Valdez sought payment in the amount of $5.9 million for the alleged breach of the agreement. On April 28, 2016, Minera Metalin filed its response to the complaint, asserting various defenses, including that Minera Metalin terminated the agreement before the payment obligations arose and that certain conditions precedent to such payment obligations were never satisfied by Valdez. The Company and the Company’s Mexican legal counsel asserted all applicable defenses. In May 2017, a final judgment was entered finding for the Company, the defendant, acquitting the Company of all of the plaintiff’s claims and demands. However, due to a technicality in an early procedural act, Valdez was allowed to, and did, challenge the judgment before a local Appeals Court. On October 1, 2020, the Appeals Court entered a resolution overturning the previous judgment and entering a resolution in favor of Valdez in the amount of $5 million, plus court costs. In November 2020, the judgment of the Appeals Court was timely challenged by the Company by means of an “Amparo” lawsuit (Constitutional protection) before a Federal Circuit Court. In June 2021, the Federal Circuit Court ruled in favour of the plaintiff. The Company believes these judgments are contrary to applicable law. The plaintiff initiated proceedings to enforce the Appeals Court resolution, and the Company has offered a mining concession as payment in full to terminate this controversy definitively. The Company believes the likelihood of the plaintiff succeeding in collecting any amount on this claim is remote, as such the Company has not accrued any amounts in its condensed interim consolidated financial statements with respect to this claim.

From time to time, the Company is involved in other disputes, claims, proceedings and legal actions arising in the ordinary course of business. The Company intends to vigorously defend all claims against the Company and pursue its full legal rights in cases where the Company has been harmed. Although the ultimate outcome of these proceedings cannot be accurately predicted due to the inherent uncertainty of litigation, in the opinion of management, based upon current information, no other currently pending or overtly threatened proceeding is expected to have a material adverse effect on the Company’s business, financial condition or results of operations.

NOTE 16 – SEGMENT INFORMATION

The Company operates in a single reportable segment: the exploration of mineral property interests. The Company has mineral property interests in Sierra Mojada, Mexico.

Geographic information is approximately as follows:

	For the Three Months Ended						For the Nine Months Ended
	July 31,						July 31,
	2023			2022			2023			2022

Mexico	$	(161,000	)	$	(110,000	)	$	(372,000	)	$	(2,344,000	)
Kazakhstan		(3,000	)		—			(3,000	)		—
Canada		(313,000	)		95,000			(925,000	)		(549,000	)
Net Loss	$	(477,000	)	$	(15,000	)	$	(1,300,000	)	$	(2,893,000	)

The following table details the allocation of assets included in the accompanying balance sheet at July 31, 2023:

	Canada		Mexico		Total
Cash and cash equivalents	$	241,000	$	—	$	241,000
Other receivables		5,000		—		5,000
Prepaid expenses and deposits		19,000		5,000		24,000
Due from related party		3,000		—		3,000
Value-added tax receivable, net		—		110,000		110,000
Office and mining equipment, net		—		133,000		133,000
Property concessions		—		5,004,000		5,004,000
	$	268,000	$	5,252,000	$	5,520,000

The following table details the allocation of assets included in the accompanying balance sheet at October 31, 2022:

	Canada		Mexico		Total
Cash and cash equivalents	$	876,000	$	11,000	$	887,000
Value-added tax receivable, net		—		127,000		127,000
Other receivables		3,000		—		3,000
Prepaid expenses and deposits		45,000		4,000		49,000
Due from related party		23,000		—		23,000
Office and mining equipment, net		—		144,000		144,000
Property concessions		—		5,020,000		5,020,000
	$	947,000	$	5,306,000	$	6,253,000

The Company has significant assets in Coahuila, Mexico. Although Mexico is generally considered economically stable, unanticipated events in Mexico, such as the blockade, can, and may in the future, disrupt the Company’s operations. The Mexican government does not require foreign entities to maintain cash reserves in Mexico.

NOTE 17 – SUBSEQUENT EVENT

On September 5, 2023, the Company entered into a litigation funding agreement (the “LFA”) with Bench Walk, a third party, who specialize in funding commercial litigation and arbitration claims. Under the terms of the LFA, Bench Walk has agreed to fund the Company with up to $9.5 million to cover the Company's legal, tribunal and external expert costs and defined corporate operating expenses associated with the Claim in relation to the international arbitration proceedings as a purchase of a contingent entitlement to damages. The Company continues to have complete control over the conduct of the international arbitration proceedings, insofar as the proceedings relate to the Company's claims, and continues to have the right to settle with the respondent, discontinue proceedings, pursue the proceedings to trial and take any action the Company considers appropriate to enforce judgment.

The Company agreed that the Funder shall be entitled to receive a share of any proceeds arising from the Claim (the “Claim Proceeds”) of up to 3.5x the Funder’s capital outlay (or, if greater, a return of 1.0x the Funder’s capital outlay plus 30% of Claim Proceeds). The actual return to the Funder may be lower than the foregoing amounts depending on how quickly the Claim is resolved.

As security for the Funder’s entitlement to receive a share of the Claim Proceeds under the LFA, the Company granted to the Funder a security interest in the Claim Proceeds, the Claim, all documents of title pertaining to the Claim, rights under any appeal bond or similar instrument posted by any of the defendants in the Claim, and all proceeds of any of the foregoing.

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

When using the terms “Silver Bull,” or the “Company,” management is referring to Silver Bull Resources, Inc. and its subsidiaries, unless the context otherwise requires. Management has included technical terms important to an understanding of the Company’s business under “Glossary of Common Terms” in its Annual Report on Form 10-K for the fiscal year ended October 31, 2022.

Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the U.S. Private Securities Litigation Reform Act of 1995, and “forward-looking information” within the meaning of applicable Canadian securities legislation. Management uses words such as “anticipate,” “continue,” “likely,” “estimate,” “expect,” “may,” “will,” “projection,” “should,” “believe,” “potential,” “could,” or similar words suggesting future outcomes (including negative and grammatical variations) to identify forward-looking statements. Forward-looking statements include statements the Company makes regarding:

The sufficiency of the Company’s existing cash resources to enable it to continue operations for the next 12 months as a going concern;
The prospects of a claim process, or award, under NAFTA;
The Litigation Funding Agreement;
Prospects of entering the development or production stage with respect to any of the Company’s projects;
Plans at the Sierra Mojada Project in 2023 and beyond;
Whether any part of the Sierra Mojada Project will ever be confirmed or converted into “proven or probable mineral reserves” as defined under Item 1300 of Regulation S-K;
The requirement of additional power supplies for the Sierra Mojada Project if a mining operation is determined to be feasible;
The Company’s ability to obtain and hold additional concessions in the Sierra Mojada Project areas;
Whether the Company will be required to obtain additional surface rights if a mining operation is determined to be feasible;
The possible impact on the Company’s operations of the blockade by a cooperative of miners on the Sierra Mojada Property;
The potential acquisition of additional mineral properties or property concessions;
Testing of the impact of the fine bubble flotation test work on the recovery of minerals and initial rough concentrate grade;
The impact of recent accounting pronouncements on financial position, results of operations or cash flows and disclosures;
The impact of changes to current state or federal laws and regulations on estimated capital expenditures, the economics of a particular project and/or activities;
The ability to raise additional capital and/or pursue additional strategic options, and the potential impact on the business, financial condition and results of operations of doing so or not;
The impact of changing foreign currency exchange rates on the Company’s financial condition;
The impairment of concessions and likelihood of further impairment of other long-lived assets;

Whether using major financial institutions with high credit ratings mitigates credit risk;
The impact of changing economic conditions on interest rates;
Expectations regarding future recovery of value-added taxes (“VAT”) paid in Mexico; and
The merits of any claims in connection with, and the expected timing of any, ongoing legal proceedings.

These statements are based on certain assumptions and analyses made by us in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, and the actual results could differ from those expressed or implied in these forward-looking statements as a result of the factors described under “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2022, including without limitation, risks associated with the following:

The ability to obtain additional financial resources on acceptable terms to (i) fund the Company’s legacy NAFTA claim (ii) maintain its property concessions in Mexico and (iii) maintain general and administrative expenditures at acceptable levels;
The ability to acquire additional mineral properties or property concessions;
The ability of the Company to maintain its assets in Mexico given the performance of the Mexican government at various levels, including those described in PART II, ITEM 1A RISK FACTORS;
Worldwide economic and political events affecting (i) the market prices for silver, zinc, lead, copper and other minerals that may be found on the Company’s exploration properties (ii) interest rates and (iii) foreign currency exchange rates;
The amount and nature of future capital and exploration expenditures;
Volatility in the Company’s stock price;
The inability to obtain required permits;
Competitive factors, including exploration-related competition;
Timing of receipt and maintenance of government approvals;
Unanticipated title issues;
Changes in tax laws;
Changes in regulatory frameworks or regulations affecting our activities;
The ability to retain key management, consultants and experts necessary to successfully operate and grow the business; and
Political and economic instability in Mexico and other countries in which the Company conducts its business, and future potential actions of the governments in such countries with respect to nationalization of natural resources or other changes in mining or taxation policies.

These factors are not intended to represent a complete list of the general or specific factors that could affect the Company.

All forward-looking statements speak only as of the date made. All subsequent written and oral forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements. Except as required by law, management undertakes 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. Readers should not place undue reliance on these forward-looking statements.

Cautionary Note Regarding Exploration Stage Companies

Silver Bull is an exploration stage company and does 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 these concessions contain proven and probable reserves, and investors may lose their entire investment. See the sections titled “Risk Factors” in this Form 10-Q and in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022.

Business Overview

Silver Bull, incorporated in Nevada, is an exploration stage company, engaged in the business of mineral exploration, and its primary objective is to define sufficient mineral reserves on the Sierra Mojada Property to justify the development of a mechanized mining operation. The Company conducts its operations in Mexico through its wholly-owned Mexican subsidiaries, Minera Metalin S.A. de C.V. (“Minera Metalin”) and Minas de Coahuila SBR S.A. de C.V. On August 26, 2021, the wholly-owned Mexican subsidiary, Contratistas de Sierra Mojada S.A. de C.V. merged with and into Minera Metalin. As noted above, the Company has not established any reserves at the Sierra Mojada Property, and it is in the exploration stage, and may never enter the development or production stage.

On August 12, 2020, the Company entered into an option agreement (the “Beskauga Option Agreement”) with Copperbelt AG, a corporation existing under the laws of Switzerland (“Copperbelt Parent”), and Dostyk LLP, an entity existing under the laws of Kazakhstan and a wholly-owned subsidiary of Copperbelt Parent (the “Copperbelt Sub,” and together with Copperbelt Parent, “Copperbelt”), pursuant to which it had the exclusive right and option (the “Beskauga Option”) to acquire Copperbelt’s right, title and 100% interest in the Beskauga property located in Kazakhstan (the “Beskauga Property”), which consists of the Beskauga Main project (the “Beskauga Main Project”) and the Beskauga South project (the “Beskauga South Project,” and together the Beskauga Main Project, the “Beskauga Project”). The transaction contemplated by the Beskauga Option Agreement closed on January 26, 2021.

On February 5, 2021, Arras Minerals Corp. (“Arras”) was incorporated in British Columbia, Canada, as a wholly-owned subsidiary of Silver Bull. On March 19, 2021, pursuant to an asset purchase agreement with Arras, the Company transferred its right, title and interest in and to the Beskauga Option Agreement, among other things, to Arras in exchange for 36,000,000 common shares of Arras. On September 24, 2021, Silver Bull distributed to its shareholders one Arras common share for each Silver Bull share held by such shareholders, or 34,547,838 Arras common shares in total (the “Distribution”), and Arras became a stand-alone company. Upon completion of the distribution, the Company retained 1,452,162 Arras common shares as a strategic investment, and Arras became a stand-alone company.

On June 29, 2023, the Company filed a request for arbitration before the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) against the United Mexican States (“Mexico”) pursuant to the provisions of international bilateral investment protection treaties which the Mexican Government has the request for arbitration (the “Request”) in the legacy NAFTA claim at the ICSID and commenced international arbitration proceedings against Mexico under the Agreement between the United States of America, Mexico, and Canada (the “USMCA”) and the NAFTA.

Since the Arbitration request, the ICSID Arbitration has become the Company’s core focus. The ICSID Arbitration seeks compensation for all of the loss and damage resulting from the Mexican State’s wrongful conduct and its breaches of the Treaties’ protections, including expropriation, unfair and inequitable treatment, discrimination, and other unlawful treatment in respect of the Mierra Mojada Property.

If the Company is successful in proving both liability and damages in such compensation claims, the Company will take appropriate steps to enforce and recover such an arbitral award (“Award”) and to defend any annulment proceedings brought by Mexico. The execution and enforcement of an Award may present material challenges and take a number of years.

Silver Bull’s principal office is located at 777 Dunsmuir Street, Suite 1605 Vancouver, BC, Canada V7Y 1K4, and the telephone number is 604-687-5800.

Recent Developments

Commencement of the Legacy NAFTA Claim

On March 2, 2023, the Company filed the NAFTA Notice of Intent. The Company has been unable to access the project since the illegal blockade commenced in September 2019. Despite numerous demands and requests for action by the Company, Mexican governmental agencies have allowed this unlawful behaviour to continue and, as such, failed to protect the Company’s investment. Silver Bull will be seeking to recover no less than US$178 million in damages that it has suffered as a result of Mexico’s breach of its NAFTA obligations.

On May 30, 2023, the Company attended a meeting with Mexican government officials in Mexico City, no settlement had been reached and the Request in the legacy NAFTA claim was filed with the ICSID on June 29, 2023.

On September 5, 2023, the Company entered into a litigation funding agreement with Bench Walk Advisors LLC (“Bench Walk”) for up to $9.5 million as a purchase of a contingent entitlement to damages.

Properties Concessions and Outlook

Sierra Mojada Property

The focus of the Company for the remainder of the 2023 calendar year is to continue the legacy NAFTA claim process in relation to the blockade at the Sierra Mojada Property.

Management and Board Changes

On April 25, 2023, Mr. Darren Klinck ceased serving as a President of the Company. Mr. Tim Barry (the Company’s Chief Executive Officer) was appointed the Company’s President, replacing Mr. Klinck.

On March 2, 2023, Mr. William Matlack was appointed to the Board of Directors as an independent director. Mr. Matlack is a veteran geologist with over a 20-year career in the mining industry, working primarily with Santa Fe Pacific Gold Corp. (now Newmont Mining) and Gold Fields. Mr. Matlack was involved in the exploration and development of several world-class gold discoveries in Nevada and California. Later, he was an equity research analyst in metals & mining with Citigroup and BMO Capital Markets, and an investment banker in metals & mining with Scarsdale Equities. Mr. Matlack was interim CEO of Klondex Mines Limited (“Klondex”) in 2012 and from 2012 to 2018, he was a director of Klondex during its transformation from an explorer to gold producer in Nevada. Mr. Matlack has served as a director of Timberline Resources Corp. since October 2019.

Results of Operations

Three Months Ended July 31, 2023 and July 31, 2022

For the three months ended July 31, 2023, the Company had a net loss of $477,000, or approximately $0.01 per share, compared to a net loss of $15,000, or approximately $nil per share, during the comparable period last year. The $462,000 increase in net loss was primarily due to a $15,000 increase in exploration and property holding costs, a $146,000 increase in administrative expenses and a $301,000 decrease in other income compared to the comparable period last year as described below.

Exploration and Property Holding Costs

Exploration and property holding costs increased $15,000 to $125,000 for the three months ended July 31, 2023, compared to $110,000 for the comparable period last year. This increase was mainly the result of the appreciation of the Mexican peso and $3,000 exploration costs incurred in Kazakhstan for the three months ended July 31, 2023.

General and Administrative Expenses

The Company recorded general and administrative expenses of $353,000 for the three months ended July 31, 2023 as compared to $207,000 for the comparable period last year. The $146,000 increase was mainly the result of a $161,000 increase in professional services and a $37,000 increase in provision for uncollectible VAT, which was partially offset by a $41,000 decrease in personnel costs and a $11,000 decrease in directors’ fees as described below.

Stock-based compensation was a factor in the fluctuations in general and administrative expenses. Overall stock-based compensation included in general and administrative expenses decreased to $14,000 for the three months ended July 31, 2023 from $53,000 for the comparable period last year as the result of stock options granted to our employees, directors and advisors in the three months ended July 31, 2022.

Personnel costs decreased $41,000 to $47,000 for the three months ended July 31 2023 as compared to $88,000 for the comparable period last year. This decrease was mainly due to a decrease in stock-based compensation expenses in the three months ended July 31, 2023 from $41,000 in the comparable period last year to $10,000 as a result of stock options vesting in the three months ended July 31, 2023 having a lower fair value than stock options vesting in the comparable period last year and a $9,000 decrease in salary as the result of the resignation of the Company’s President in April 2023.

Office and administrative costs of $62,000 for the three months ended July 31, 2023 were similar to the $61,000 in such costs for the comparable period last year.

Professional fees increased $161,000 to $179,000 for the three months ended July 31, 2023 compared to $18,000 for the comparable period last year. This increase is mainly due to arbitration related costs incurred in relation to the legacy NAFTA claim (as described in the “Recent Developments” section).

Directors’ fees decreased $11,000 to $26,000 for the three months ended July 31, 2023 as compared to $37,000 for the comparable period last year. This decrease was primarily due to a decrease in the stock-based compensation expense compared to the comparable period last year as a result of stock options vesting in the three months ended July 31, 2023 having a lower fair value than stock options vesting in the comparable period last year.

A provision for uncollectible VAT in the amount of $39,000 was recorded for the three months ended July 31, 2023 as compared to $2,000 in such costs for 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 estimated net recovery after commissions.

Other Income

Other income decreased $301,000 to $3,000 for the three months ended July 31, 2023 compared to $304,000 other income for the comparable period last year. The significant factor contributing to other income was $3,000 interest income for the three months ended July 31, 2023. The significant factor contributing to other income was a $301,000 gain from selling Arras shares and interest income of $4,000 for the comparable period last year.

Nine Months Ended July 31, 2023 and July 31, 2022

For the nine months ended July 31, 2023, the Company had a net loss of $1,300,000, or approximately $0.04 per share, compared to a net loss of $2,893,000, or approximately $0.08 per share, during the comparable period last year. The $1,593,000 decrease in net loss was primarily due to a $2,058,000 goodwill impairment in exploration and property holding costs in the comparable period last year, which was partially offset by a $152,000 increase in administrative expenses and $9,000 in other income for the three months ended July 31, 2023, compared to $304,000 in other income in the comparable period last year as described below.

Exploration and Property Holding Costs

Exploration and property holding costs decreased $2,036,000 to $304,000 for the nine months ended July 31, 2023, compared to $2,340,000 for the comparable period last year. This decrease was mainly the result of a $2,058,000 goodwill impairment in the comparable period last year, which was offset by a $16,000 concession impairment for the nine months ended July 31, 2023.

General and Administrative Expenses

The Company recorded general and administrative expenses of $986,000 for the nine months ended July 31, 2023 as compared to $834,000 for the comparable period last year. The $152,000 increase was mainly the result of a $308,000 increase in professional services and a $39,000 increase in provision for uncollectible VAT, which were partially offset by a $125,000 decrease in personnel costs, a $30,000 decrease in office and administrative costs and a $39,000 decrease in directors’ fees as described below.

Stock-based compensation was a factor in the fluctuations in general and administrative expenses. Overall stock-based compensation included in general and administrative expenses decreased to $63,000 for the nine months ended July 31, 2023 from $244,000 for the comparable period last year. This was mainly due to stock options granted to our employees, directors and advisors in the comparable period last year.

Personnel costs decreased $125,000 to $243,000 for the nine months ended July 31, 2023 as compared to $368,000 for the comparable period last year. This decrease was mainly due to a $142,000 decrease in stock-based compensation expenses in the nine months ended July 31, 2023 from $183,000 in the comparable period last year as a result of stock options vesting in the nine months ended July 31, 2022 having a higher fair value than stock options vesting in the comparable period last year, which were partially offset by a $16,000 increase in employees’ salaries and bonus.

Office and administrative costs decreased $30,000 to $162,000 for the nine months ended July 31, 2023 as compared to $192,000 for the comparable period last year. This decrease was primarily due to decreased investor relations activities and insurance, which were partially offset by a $13,000 increase in travel costs.

Professional fees increased $308,000 to $445,000 for the nine months ended July 31, 2023 compared to $137,000 for the comparable period last year. This increase was mainly due to arbitration related costs incurred in relation to the legacy NAFTA claim (as described in the “Recent Developments” section).

Directors’ fees decreased $39,000 to $87,000 for the nine months ended July 31, 2023 as compared to $126,000 for the comparable period last year. This decrease was primarily due to a $39,000 decrease the stock-based compensation expense to $21,000 in the nine months ended July 31, 2023 from $60,000 in the comparable period last year as a result of stock options vesting in the nine months ended July 31, 2023 having a lower fair value than stock options vesting in the comparable period last year.

The Company recorded a $50,000 provision for uncollectible VAT for the nine months ended July 31, 2023 as compared to a $11,000 provision for uncollectible VAT 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 estimated net recovery after commissions.

Other Income (Expense)

Other expenses of $9,000 were incurred for the nine months ended July 31, 2023 as compared to other income of $286,000 for the comparable period last year. The significant factor contributing to other expenses was $19,000 other costs related to the certain years’ VAT and corporate taxes disputes with Mexican tax authorities and a $5,000 foreign currency transaction loss for the nine months ended July 31, 2023, which was offset by $16,000 in interest income. The significant factor contributing to other income for the comparable period last year was a $301,000 gain from selling Arras shares and interest income of $4,000.

Material Changes in Financial Condition; Liquidity and Capital Resources

Cash Flows

During the nine months ended July 31, 2023, cash and cash equivalents were primarily utilized to fund general and administrative expenses and exploration activities at the Sierra Mojada Property. As a result of the exploration activities and general and administrative expenses, cash and cash equivalents decreased from $887,000 at October 31, 2022 to $241,000 at July 31, 2023.

Cash flows used in operating activities for the nine months ended July 31, 2023 were $646,000, as compared to $987,000 for the comparable period in 2022. This decrease was mainly due to the timing of certain payments.

Cash flows provided by investing activities for the nine months ended July 31, 2023 were $nil. Cash flows provided by investing activities for the nine months ended July 31, 2022 were proceeds of $1,434,000 from the sale of 600,000 Arras common shares at a price of $CDN 1.00 per share and 852,262 Arras common shares at a price of $CDN 1.50 per share.

Cash flows provided by financing activities for the nine months ended July 31, 2023 and 2022 were $nil.

Capital Resources

As of July 31, 2023, the Company had cash and cash equivalents of $241,000, as compared to cash and cash equivalents of $887,000 as of October 31, 2022. The decrease in liquidity and working capital were primarily the result of the exploration activities at the Sierra Mojada Property and general and administrative expenses.

Since the Company’s inception in November 1993, it has not generated revenue and has incurred an accumulated deficit of $138,694,000. Accordingly, Silver Bull has not generated cash flows from operations, and since inception has relied primarily upon proceeds from private placements and registered direct offerings of the Company’s equity securities, warrant exercises, sale of investments, and funding from South32 as the primary sources of financing to fund our operations. With respect to the anticipated costs associated with the aforementioned arbitration, as of September 5, 2023, the Company has secured third-party arbitration finance from Bench Walk in an amount of up to $9.5 million. The funding has been completed as purchase of a contingent entitlement to damages in the event that a damages award is recovered from Mexico.

Despite the arbitration finance in place, based on the Company’s limited cash and cash equivalents which are less than the Company’s liabilities at July 31, 2023, as well as the history of losses, there remains substantial doubt as to whether its existing cash resources are sufficient to enable it to continue operations for the next 12 months as a going concern. Management plans to pursue possible financing and strategic options, including, but not limited to, obtaining additional equity financing, and the exercise of warrants by warrantholders. However, there is no assurance that the Company will be successful in pursuing these plans.

Any future additional financing in the near term will likely be in the form of the issuance of equity securities, which will result in dilution to Silver Bull’s existing shareholders. Moreover, the Company may incur significant fees and expenses in the pursuit of a financing or other strategic transaction, which will increase the rate at which its cash and cash equivalents are depleted.

Capital Requirements and Liquidity; Need for Additional Funding

The Company’s management and board of directors monitor overall costs, expenses, and financial resources and, if necessary, will adjust planned operational expenditures in an attempt to ensure that the Company has sufficient operating capital. Management continues to evaluate the Company’s costs and planned expenditures, including for the Sierra Mojada Property, as discussed below.

The aforementioned legacy NAFTA claim process will require the Company to incur significant expense and devote significant resources. Outcomes in legacy NAFTA claim and the process for recovering funds, even if there is a successful outcome in legacy NAFTA claim, can be lengthy and unpredictable.

In January 2023, Silver Bull’s board of directors approved a calendar year 2023 budget of $0.3 million for the Sierra Mojada Property and $0.7 million for general and administrative expenses for calendar year 2023. As of August 31, 2023, the Company had approximately $0.2 million in cash and cash equivalents. The Company has arbitration financing from Bench Walk in place to meet its anticipated corporate overheads and expenditures in relation to the arbitration process; however, to relieve its existing liabilities and other future plans, the Company may ultimately be required to raise additional capital, or identify other sources of funding.

Management will continue to evaluate the Company’s ability to obtain additional financial resources and will attempt to reduce or limit expenditures if determined that additional financial resources are unavailable or available on terms that management determine are unacceptable. However, it may not be possible to reduce costs, and even if management is successful in reducing costs, the Company still may not be able to continue operations for the next 12 months as a going concern. If the Company is unable to fund future operations by obtaining additional financial resources, including an equity offering or other strategic transaction, management does not expect to have sufficient available cash and cash equivalents to continue the Company’s operations for the next 12 months as a going concern.

Critical Accounting Policies

The critical accounting policies are defined in the Company’s Annual Report on Form 10-K for the year ended October 31, 2022 filed with the SEC on January 26, 2023.

Other recent accounting pronouncements issued by the Financial Accounting Standards Board (including its Emerging Issues Task Force) and the SEC did not or are not expected to have a material impact on the Company’s present or future consolidated financial statements.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

ITEM 4.

CONTROLS AND PROCEDURES.

(a)

Evaluation of Disclosure Controls and Procedures.

Under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, management has carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of April 30, 2023. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective as of July 31, 2023.

The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed in its reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in its reports filed or submitted under the Exchange Act is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

(b)

Changes in Internal Control over Financial Reporting

During the quarter ended July 31, 2023, 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.

See Note 15 – Commitments and Contingencies to the Company’s financial statements (Part I, Item 1 of this Quarterly Report on Form 10-Q) for information regarding legal proceedings in which it is involved.

ITEM 1A.

RISK FACTORS.

The risk factor outlined below should be considered along with the risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended October 31, 2022.

The Company has litigation risk with respect to its legacy NAFTA claim under the United States-Mexico-Canada Agreement and other possible proceedings.

The Company is currently, and may in the future become, subject to litigation, arbitration or proceedings with other parties. On March 2, 2023, the Company filed a Notice of Intent with Mexico’s Directorate General of Foreign Investment to initiate a legacy NAFTA claim under Annex 14-C of the United States-Mexico-Canada Agreement to recover economic damages resulting from the illegal blockade of the Sierra Mojada Project by Mineros Norteños. On June 29, 2023, the Company filed the Request in the legacy NAFTA claim with the ICSID. If decided adversely to us, these legal proceedings, or others that could be brought against the Company in the future, could have a material adverse effect on our financial position or prospects. While the Company believes its legacy NAFTA claim is valid, litigation matters are inherently uncertain and there is no guarantee that the Company will be successful in its assessment, or that the likely outcome of this matter will be consistent with the ultimate resolution of the matter. The legacy NAFTA claim process will require the Company to incur significant expense, devote significant resources, and may generate adverse publicity, which could materially, and possibly adversely, affect its business. The Company’s inability to enforce its rights and the enforcement of rights on a prejudicial basis by foreign courts or international arbitral tribunals could have an adverse effect on the Company’s outlook. Outcomes in the legacy NAFTA claim and the process for recovering funds even if there is a successful outcome in the legacy NAFTA claim can be lengthy and unpredictable. Furthermore, there is a risk that the Company will be unable to secure the necessary funding to advance its claim.

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.

Incorporated by Reference

Exhibit Number

Exhibit Description

Form

Date

Exhibit

Filed/ Furnished Herewith

31.1

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

31.2

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

32.1

Certification of CEO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

Certification of CFO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*

XBRL Instance Document

101.SCH*

XBRL Schema Document

101.CAL*

XBRL Calculation Linkbase Document

101.DEF*

XBRL Definition Linkbase Document

101.LAB*

XBRL Labels Linkbase Document

104

The Cover Page Interactive Data File, formatted in Inline XBRL (included in Exhibit 101).

Filed herewith

Furnished herewith

Indicates a management contract or compensatory plan, contract or arrangement.

The following financial information from Silver Bull Resources, Inc.’s Quarterly Report on Form 10-Q for the nine months ended July 31, 2023, is formatted in XBRL (Extensible Business Reporting Language): Interim Condensed Consolidated Balance Sheets, Interim Condensed Consolidated Statements of Operations and Comprehensive Loss, Interim Condensed Consolidated Statements of Stockholders’ Equity, Interim Condensed Consolidated Statements of Cash Flows.

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: September 13, 2023	By:	/s/ Timothy Barry
		Timothy Barry
		President and Chief Executive Officer
		(Principal Executive Officer)
Dated: September 13, 2023	By:	/s/ Christopher Richards
		Christopher Richards
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

Exhibit 31.1

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

I, Timothy Barry, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Silver Bull Resources, Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: September 13, 2023

By:

/s/ Timothy Barry

Timothy Barry, Chief Executive Officer

(Principal Executive Officer)

Exhibit 31.2

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

I, Christopher Richards, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Silver Bull Resources, Inc.;

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: September 13, 2023

By:

/s/ Christopher Richards

Christopher Richards, Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

Exhibit 32.1

CERTIFICATION OF CEO PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Silver Bull Resources, Inc. (the “Company”) does hereby certify with respect to the Quarterly Report of the Company on Form 10-Q for the quarterly period ended July 31, 2023 (the “Report”) that:

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



Dated: September 13, 2023	By:	/s/ Timothy Barry
		Timothy Barry, Chief Executive Officer (Principal Executive Officer)

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code). It shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (15 U.S.C. Section 78r) or otherwise subject to the liability of that section. It shall also not be deemed incorporated by reference into any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except to the extent that the Company specifically incorporates it by reference.

Exhibit 32.2

CERTIFICATION OF CFO PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



Dated: September 13, 2023	By:	/s/ Christopher Richards
		Christopher Richards, Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Jul. 31, 2023	Sep. 13, 2023
Document Information Line Items
Entity Registrant Name	SILVER BULL RESOURCES, INC.
Document Type	10-Q
Current Fiscal Year End Date	--10-31
Entity Common Stock, Shares Outstanding		35,680,652
Amendment Flag	false
Entity Central Index Key	0001031093
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Jul. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-33125
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	91-1766677
Entity Address, Address Line One	777 Dunsmuir Street
Entity Address, Address Line Two	Suite 1605
Entity Address, City or Town	Vancouver, B.C.
Entity Address, Country	CA
Entity Address, Postal Zip Code	V7Y 1K4
City Area Code	(604)
Local Phone Number	-687-5800
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jul. 31, 2023	Oct. 31, 2022
CURRENT ASSETS
Cash and cash equivalents (Notes 1 and 13)	$ 241,213	$ 886,728
Other receivables	5,153	2,834
Prepaid expenses and deposits	23,497	49,537
Due from related party (Note 5)	2,790	23,196
Total Current Assets	272,653	962,295
Value-added tax receivable, net of allowance for uncollectible taxes of $584,245 and $449,219, respectively (Note 6)	109,714	127,036
Office and mining equipment, net (Note 7)	133,380	143,568
Property concessions (Note 8)	5,004,386	5,019,927
TOTAL ASSETS	5,520,133	6,252,826
CURRENT LIABILITIES
Accounts payable	332,394	159,585
Accrued liabilities and expenses	418,707	179,607
Income tax payable	2,500	3,000
Loan payable (Note 10)	45,534
Total Current Liabilities	799,135	342,192
Loan payable (Note 10)		43,959
TOTAL LIABILITIES	799,135	386,151
COMMITMENTS AND CONTINGENCIES (Note 15)
STOCKHOLDERS’ EQUITY (Notes 4, 11, 12 and 13)
Common stock, $0.01 par value; 150,000,000 shares authorized, 35,680,652 and 35,055,652 shares issued and outstanding, respectively	2,424,665	2,418,415
Additional paid-in capital	140,898,524	140,750,310
Accumulated deficit	(138,694,439)	(137,394,298)
Other comprehensive income	92,248	92,248
Total Stockholders’ Equity	4,720,998	5,866,675
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 5,520,133	$ 6,252,826

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Jul. 31, 2023	Oct. 31, 2022
Statement of Financial Position [Abstract]
Net of allowance for uncollectible taxes (in Dollars)	$ 584,245	$ 449,219
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	35,680,652	35,055,652
Common stock, shares outstanding	35,680,652	35,055,652

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Income Statement [Abstract]
REVENUES
EXPLORATION AND PROPERTY HOLDING COSTS
Exploration and property holding costs	122,490	104,767	277,955	266,548
Depreciation (Note 7)	2,850	4,923	10,188	15,649
Concession impairment (Note 8)			15,541
Goodwill impairment (Note 9)				2,058,031
TOTAL EXPLORATION AND PROPERTY HOLDING COSTS	125,340	109,690	303,684	2,340,228
GENERAL AND ADMINISTRATIVE EXPENSES
Personnel	47,114	87,959	242,794	367,610
Office and administrative	61,903	60,809	162,334	192,031
Professional services (Note 1)	178,662	18,287	444,909	136,839
Directors’ fees	26,495	37,325	86,645	126,195
Provision for uncollectible value-added taxes (Note 6)	39,098	2,181	49,532	11,483
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES	353,272	206,561	986,214	834,158
LOSS FROM OPERATIONS	(478,612)	(316,251)	(1,289,898)	(3,174,386)
OTHER INCOME (EXPENSES)
Interest income	3,229	3,608	16,320	3,619
Foreign currency transaction loss	(95)	(1,772)	(5,491)	(20,127)
Other costs (Note 14)			(19,355)
Other income		1,050		1,050
Gain on investment (Note 1)		301,493		301,493
TOTAL OTHER INCOME (EXPENSES)	3,134	304,379	(8,526)	286,035
LOSS BEFORE INCOME TAXES	(475,478)	(11,872)	(1,298,424)	(2,888,351)
INCOME TAX EXPENSE	(1,000)	(3,020)	(1,717)	(4,520)
NET AND COMPREHENSIVE LOSS	$ (476,478)	$ (14,892)	$ (1,300,141)	$ (2,892,871)
BASIC AND DILUTED NET LOSS PER COMMON SHARE (in Dollars per share)	$ (0.01)	$ 0	$ (0.04)	$ (0.08)
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES (Note 13) (in Shares)	35,680,652	35,055,652	35,385,322	34,852,898

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Income Statement [Abstract]
DILUTED NET LOSS PER COMMON SHARE	$ (0.01)	$ 0.00	$ (0.04)	$ (0.08)
DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING	35,680,652	35,055,652	35,385,322	34,852,898

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Other Comprehensive Income	Total
Balance at Oct. 31, 2021	$ 2,413,337	$ 139,803,515	$ 134,226,099	$ 92,248	$ 8,083,001
Balance (in Shares) at Oct. 31, 2021	34,547,838
Issuance of common stock as follows:
- For compensation	$ 5,078	123,016			128,094
- For compensation (in Shares)	507,814
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 12)		251,429			251,429
Net loss			2,892,871		(2,892,871)
Balance at Jul. 31, 2022	$ 2,418,415	140,177,960	(137,118,970)	92,248	5,569,653
Balance (in Shares) at Jul. 31, 2022	35,055,652
Balance at Apr. 30, 2022	$ 2,418,415	140,123,611	(137,104,078)	92,248	5,530,196
Balance (in Shares) at Apr. 30, 2022	35,055,652
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 12)		54,349			54,349
Net loss			(14,892)		(14,892)
Balance at Jul. 31, 2022	$ 2,418,415	140,177,960	(137,118,970)	92,248	5,569,653
Balance (in Shares) at Jul. 31, 2022	35,055,652
Balance at Oct. 31, 2022	$ 2,418,415	140,750,310	(137,394,298)	92,248	5,866,675
Balance (in Shares) at Oct. 31, 2022	35,055,652
Issuance of common stock as follows:
- For compensation	$ 6,250	82,161			88,411
- For compensation (in Shares)	625,000
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 12)		66,053			66,053
Net loss			(1,300,141)		(1,300,141)
Balance at Jul. 31, 2023	$ 2,424,665	140,898,524	(138,694,439)	92,248	4,720,998
Balance (in Shares) at Jul. 31, 2023	35,680,652
Balance at Apr. 30, 2023	$ 2,424,665	140,883,647	(138,217,961)	92,248	5,182,599
Balance (in Shares) at Apr. 30, 2023	35,055,652
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 12)		14,877			14,877
Net loss			(476,478)		(476,478)
Balance at Jul. 31, 2023	$ 2,424,665	$ 140,898,524	$ (138,694,439)	$ 92,248	$ 4,720,998
Balance (in Shares) at Jul. 31, 2023	35,680,652

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (Parentheticals) - $ / shares	Jul. 31, 2023	Jul. 31, 2022
Statement of Stockholders' Equity [Abstract]
Issuance of common stock compensation	$ 0.14	$ 0.25

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,300,141)	$ (2,892,871)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation (Note 7)	10,188	15,649
Concessions impairment (Note 8)	15,541
Goodwill impairment (Note 9)		2,058,031
Provision for uncollectible value-added taxes (Note 6)	49,532	11,483
Foreign currency transaction (income) loss	(204)	21,893
Stock options issued for compensation (Note 12)	66,053	251,429
Shares of common stock issued for services (Note 11)	88,411	128,094
Realized share of net gain of investment		(301,493)
Changes in operating assets and liabilities:
Value-added tax receivable (Note 6)	(9,954)	(12,186)
Other receivables	(2,298)	4,456
Prepaid expenses and deposits	26,873	170,822
Accounts payable	168,773	(302,712)
Accrued liabilities and expenses	221,805	(142,256)
Due from related party (Note 5)	20,406	437
Income tax payable	(500)	2,000
Net cash used in operating activities	(645,515)	(987,224)
CASH FLOWS FROM INVESTING ACTIVITY:
Proceeds from sale of investments, net of costs (Note 1)		1,434,113
Net cash provided by investing activity		1,434,113
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash provided by financing activities
Effect of exchange rates on cash and cash equivalents		(4,564)
Net (decrease) increase in cash and cash equivalents	(645,515)	442,325
Cash and cash equivalents beginning of period	886,728	189,607
Cash and cash equivalents end of period	241,213	631,932
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Income taxes paid	2,249	2,220
Interest paid

ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

9 Months Ended

Jul. 31, 2023

Organization, Description of Business and Going Concern [Abstract]

ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

Illegal Blockade of Sierra Mojada Property and Arbitration

The Company’s efforts and expenditures have been concentrated on the exploration of properties, principally with respect to the Sierra Mojada Property located in Coahuila, Mexico.

On August 31, 2022, due to the ongoing blockade of the site, the South32 Option Agreement was mutually terminated by South32 and the Company.

As of September 13, 2023, the blockade by Mineros Norteños at, on and around the Sierra Mojada Property is ongoing, and the Company remains unable to access the Sierra Mojada Property.

Arras Minerals Corp. Spin-Off

Exploration Stage

Beginning with the Company’s annual report on Form 10-K for the year ended October 31, 2022, the Company reports its mineral resources in accordance with S-K 1300.

Going Concern

BASIS OF PRESENTATION

9 Months Ended

Jul. 31, 2023

Basis of Presentation [Abstract]

BASIS OF PRESENTATION

NOTE 2 – BASIS OF PRESENTATION

All figures are in United States dollars unless otherwise noted.

SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jul. 31, 2023

Significant Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies are defined in the Company’s Annual Report on Form 10-K for the year ended October 31, 2022 filed with the SEC on January 26, 2023.

NET LOSS PER SHARE

9 Months Ended

Jul. 31, 2023

Net Loss Per Share [Abstract]

NET LOSS PER SHARE

NOTE 4 – NET LOSS PER SHARE

DUE FROM RELATED PARTY

9 Months Ended

Jul. 31, 2023

Due from Related Party [Abstract]

DUE FROM RELATED PARTY

NOTE 5 – DUE FROM RELATED PARTY

VALUE-ADDED TAX RECEIVABLE

9 Months Ended

Jul. 31, 2023

Value-Added Tax Receivable [Abstract]

VALUE-ADDED TAX RECEIVABLE

NOTE 6 – VALUE-ADDED TAX RECEIVABLE

A summary of the changes in the allowance for uncollectible VAT for the nine months ended July 31, 2023, is as follows:

Allowance for uncollectible VAT – October 31, 2022	$	449,219
Provision for VAT receivable allowance		49,532
Foreign currency translation adjustment		85,494
Allowance for uncollectible VAT – July 31, 2023	$	584,245

OFFICE AND MINING EQUIPMENT

9 Months Ended

Jul. 31, 2023

Office and Mining Equipment [Abstract]

OFFICE AND MINING EQUIPMENT

NOTE 7 – OFFICE AND MINING EQUIPMENT

The following is a summary of the Company’s office and mining equipment at July 31, 2023 and October 31, 2022, respectively:

	July 31,			October 31,
	2023			2022

Mining equipment	$	396,153		$	396,153
Vehicles		92,873			92,873
Buildings and structures		185,724			185,724
Computer equipment and software		74,236			74,236
Well equipment		39,637			39,637
Office equipment		47,597			47,597
		836,220			836,220
Less: Accumulated depreciation		(702,840	)		(692,652	)
Office and mining equipment, net	$	133,380		$	143,568

PROPERTY CONCESSIONS

9 Months Ended

Jul. 31, 2023

Property Concessions [Abstract]

PROPERTY CONCESSIONS

NOTE 8 – PROPERTY CONCESSIONS

The following is a summary of the Company’s property concessions for the Sierra Mojada Property as at July 31, 2023 and October 31, 2022:

Property concessions – October 31, 2022	$	5,019,927
Impairment		(15,541	)
Property concessions – July 31, 2023	$	5,004,386

If the blockade at Sierra Mojada Property continues, further impairment of property concessions is possible.

GOODWILL

9 Months Ended

Jul. 31, 2023

Goodwill [Abstract]

GOODWILL

NOTE 9 – GOODWILL

The following is a summary of the Company’s goodwill balance as of July 31, 2022 and October 31, 2021:

Goodwill – October 31, 2021	$	2,058,031
Impairment		(2,058,031	)
Goodwill – April 30, 2022	$	—

LOAN PAYABLE

9 Months Ended

Jul. 31, 2023

Loan Payable [Abstract]

LOAN PAYABLE

NOTE 10 – LOAN PAYABLE

Loan payable – October 31, 2022	$	43,959
Foreign currency translation adjustment		1,575
Loan payable – July 31, 2023	$	45,534

COMMON STOCK

9 Months Ended

Jul. 31, 2023

Common Stock [Abstract]

COMMON STOCK

NOTE 11– COMMON STOCK

On March 9, 2023, the Company issued 625,000 shares of common stock at an average of $0.14 per share of common stock as payment of accrued management bonuses in the amount of $88,411 ($CDN121,875).

STOCK OPTIONS

9 Months Ended

Jul. 31, 2023

STOCK OPTIONS [Abstract]

STOCK OPTIONS

NOTE 12 – STOCK OPTIONS

During the nine months period ended July 31, 2023, the Company granted options to acquire 150,000 shares of common stock with a weighted-average grant-date fair value of $0.07 per share.

No options were exercised during the nine months ended July 31, 2023.

During the nine months period ended July 31, 2022, the Company granted options to acquire 3,300,000 shares of common stock with a weighted-average grant-date fair value of $0.14 per share.

No options were exercised during the nine months ended July 31, 2022.

A summary of the range of assumptions used to value stock options granted for the nine months ended July 31, 2023 and 2022 are as follows:

	Nine Months Ended July 31,
Options	2023	2022

Expected volatility	74% – 81%	81% – 87%
Risk-free interest rate	3.83% – 3.96%	1.60% – 1.74%
Dividend yield	—	—
Expected term (in years)	2.50 – 3.50	2.50 – 3.50

The following is a summary of stock option activity for the nine months ended July 31, 2023:

Options		Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value

	Outstanding at October 31, 2022		3,193,750		$	0.25		4.25	$	—
	Granted		150,000			0.14
	Cancelled		(300,000	)		0.24
	Expired		(643,750	)		1.27
	Outstanding at July 31, 2023		2,400,000			0.23		3.62		—
	Exercisable at July 31, 2023		1,550,000		$	0.23		2.59	$	—

Summarized information about stock options outstanding and exercisable at July 31, 2023 is as follows:

	Options Outstanding					Options Exercisable
	Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price	Number Exercisable		Weighted Average Exercise Price
$	0.24	2,250,000	3.56	$	0.24	1,500,000	$	0.24
	0.14	150,000	4.62		0.14	50,000		0.14

WARRANTS

9 Months Ended

Jul. 31, 2023

Warrants [Abstract]

WARRANTS

NOTE 13 – WARRANTS

A summary of warrant activity for the nine months ended July 31, 2023 is as follows:

Warrants	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value

Outstanding and exercisable at October 31, 2022		1,971,289	$	0.59		2.99	$	—
Outstanding and exercisable at July 31, 2023*		1,971,289		0.59		2.25		—

No warrants were issued or exercised during the nine months ended July 31, 2023 or 2022.

Summarized information about warrants outstanding and exercisable at July 31, 2023 is as follows:

Warrants Outstanding and Exercisable

Exercise Price

Number

Outstanding

Weighted Average Remaining Contractual Life (Years)

Weighted Average Exercise Price

0.59

1,971,289

2.25

0.59

FINANCIAL INSTRUMENTS

9 Months Ended

Jul. 31, 2023

Financial Instruments [Abstract]

FINANCIAL INSTRUMENTS

NOTE 14 – FINANCIAL INSTRUMENTS

Fair Value Measurements

The three levels of the fair value hierarchy are as follows:

	Level 1	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
	Level 2	Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
	Level 3	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Credit Risk

As at July 31, 2023 and October 31, 2022, cash and cash equivalents consist of guaranteed investment certificates of $139,637 and $369,551, respectively, held in bank accounts.

Liquidity Risk

Accounts payable and accrued liabilities are non-interest-bearing and are typically settled on 30-day terms.

Interest Rate Risk

Foreign Currency Exchange Risk

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jul. 31, 2023

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 15 – COMMITMENTS AND CONTINGENCIES

Compliance with Environmental Regulations

Property Concessions in Mexico

To properly maintain property concessions in Mexico, the Company is required to pay a semi-annual fee to the Mexican government and complete annual assessment work.

Royalty

Litigation and Claims

Mineros Norteños Case

Legacy Investment Claim Under the North American Free Trade Agreement (“NAFTA”)

On March 2, 2023, the Company filed a Notice of Intent with Mexico’s Directorate General of Foreign Investment to initiate a legacy NAFTA claim under Annex 14-C of the United States-Mexico-Canada Agreement to recover economic damages resulting from the illegal blockade of the Sierra Mojada Property by Mineros Norteños (Note 1). On May 30, 2023, the Company attended a meeting with Mexican government officials in Mexico City, no settlement had been reached and the Request in the legacy NAFTA claim was filed with the ICSID on June 29, 2023.

Valdez Case

SEGMENT INFORMATION

9 Months Ended

Jul. 31, 2023

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 16 – SEGMENT INFORMATION

The Company operates in a single reportable segment: the exploration of mineral property interests. The Company has mineral property interests in Sierra Mojada, Mexico.

Geographic information is approximately as follows:

	For the Three Months Ended						For the Nine Months Ended
	July 31,						July 31,
	2023			2022			2023			2022

Mexico	$	(161,000	)	$	(110,000	)	$	(372,000	)	$	(2,344,000	)
Kazakhstan		(3,000	)		—			(3,000	)		—
Canada		(313,000	)		95,000			(925,000	)		(549,000	)
Net Loss	$	(477,000	)	$	(15,000	)	$	(1,300,000	)	$	(2,893,000	)

The following table details the allocation of assets included in the accompanying balance sheet at July 31, 2023:

	Canada		Mexico		Total
Cash and cash equivalents	$	241,000	$	—	$	241,000
Other receivables		5,000		—		5,000
Prepaid expenses and deposits		19,000		5,000		24,000
Due from related party		3,000		—		3,000
Value-added tax receivable, net		—		110,000		110,000
Office and mining equipment, net		—		133,000		133,000
Property concessions		—		5,004,000		5,004,000
	$	268,000	$	5,252,000	$	5,520,000

The following table details the allocation of assets included in the accompanying balance sheet at October 31, 2022:

	Canada		Mexico		Total
Cash and cash equivalents	$	876,000	$	11,000	$	887,000
Value-added tax receivable, net		—		127,000		127,000
Other receivables		3,000		—		3,000
Prepaid expenses and deposits		45,000		4,000		49,000
Due from related party		23,000		—		23,000
Office and mining equipment, net		—		144,000		144,000
Property concessions		—		5,020,000		5,020,000
	$	947,000	$	5,306,000	$	6,253,000

SUBSEQUENT EVENT

9 Months Ended

Jul. 31, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENT

NOTE 17 – SUBSEQUENT EVENT

VALUE-ADDED TAX RECEIVABLE (Tables)

9 Months Ended

Jul. 31, 2023

Value-Added Tax Receivable [Abstract]

Schedule of the Changes in the Allowance for Uncollectible VAT

A summary of the changes in the allowance for uncollectible VAT for the nine months ended July 31, 2023, is as follows:

Allowance for uncollectible VAT – October 31, 2022	$	449,219
Provision for VAT receivable allowance		49,532
Foreign currency translation adjustment		85,494
Allowance for uncollectible VAT – July 31, 2023	$	584,245

OFFICE AND MINING EQUIPMENT (Tables)

9 Months Ended

Jul. 31, 2023

Office and Mining Equipment [Abstract]

Schedule of Office and Mining Equipment

The following is a summary of the Company’s office and mining equipment at July 31, 2023 and October 31, 2022, respectively:

	July 31,			October 31,
	2023			2022

Mining equipment	$	396,153		$	396,153
Vehicles		92,873			92,873
Buildings and structures		185,724			185,724
Computer equipment and software		74,236			74,236
Well equipment		39,637			39,637
Office equipment		47,597			47,597
		836,220			836,220
Less: Accumulated depreciation		(702,840	)		(692,652	)
Office and mining equipment, net	$	133,380		$	143,568

PROPERTY CONCESSIONS (Tables)

9 Months Ended

Jul. 31, 2023

Schedule of property concessions [Abstract]

Schedule of Property Concessions

The following is a summary of the Company’s property concessions for the Sierra Mojada Property as at July 31, 2023 and October 31, 2022:

Property concessions – October 31, 2022	$	5,019,927
Impairment		(15,541	)
Property concessions – July 31, 2023	$	5,004,386

GOODWILL (Tables)

9 Months Ended

Jul. 31, 2023

Goodwill [Abstract]

Schedule of Goodwill Balance

The following is a summary of the Company’s goodwill balance as of July 31, 2022 and October 31, 2021:

Goodwill – October 31, 2021	$	2,058,031
Impairment		(2,058,031	)
Goodwill – April 30, 2022	$	—

LOAN PAYABLE (Tables)

9 Months Ended

Jul. 31, 2023

Loan Payable [Abstract]

Schedule of Loan Payable

The Company anticipates repaying the CEBA loan prior to the Initial Term date. An income will be recognized in the period when the CEBA loan is forgiven.

Loan payable – October 31, 2022	$	43,959
Foreign currency translation adjustment		1,575
Loan payable – July 31, 2023	$	45,534

STOCK OPTIONS (Tables)

9 Months Ended

Jul. 31, 2023

STOCK OPTIONS [Abstract]

Schedule of Summary of the Range of Assumptions Used to Value Stock Options Granted

A summary of the range of assumptions used to value stock options granted for the nine months ended July 31, 2023 and 2022 are as follows:

	Nine Months Ended July 31,
Options	2023	2022

Expected volatility	74% – 81%	81% – 87%
Risk-free interest rate	3.83% – 3.96%	1.60% – 1.74%
Dividend yield	—	—
Expected term (in years)	2.50 – 3.50	2.50 – 3.50

Schedule of Summary of Stock Option Activity

The following is a summary of stock option activity for the nine months ended July 31, 2023:

Options		Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value

	Outstanding at October 31, 2022		3,193,750		$	0.25		4.25	$	—
	Granted		150,000			0.14
	Cancelled		(300,000	)		0.24
	Expired		(643,750	)		1.27
	Outstanding at July 31, 2023		2,400,000			0.23		3.62		—
	Exercisable at July 31, 2023		1,550,000		$	0.23		2.59	$	—

Schedule of Summarized Information About Stock Options Outstanding and Exercisable

Summarized information about stock options outstanding and exercisable at July 31, 2023 is as follows:

	Options Outstanding					Options Exercisable
	Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price	Number Exercisable		Weighted Average Exercise Price
$	0.24	2,250,000	3.56	$	0.24	1,500,000	$	0.24
	0.14	150,000	4.62		0.14	50,000		0.14

WARRANTS (Tables)

9 Months Ended

Jul. 31, 2023

WARRANTS [Abstract]

Schedule of Warrant Activity

A summary of warrant activity for the nine months ended July 31, 2023 is as follows:

Warrants	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value

Outstanding and exercisable at October 31, 2022		1,971,289	$	0.59		2.99	$	—
Outstanding and exercisable at July 31, 2023*		1,971,289		0.59		2.25		—

Schedule of Warrants Outstanding and Exercisable

Summarized information about warrants outstanding and exercisable at July 31, 2023 is as follows:

Warrants Outstanding and Exercisable

Exercise Price

Number

Outstanding

Weighted Average Remaining Contractual Life (Years)

Weighted Average Exercise Price

0.59

1,971,289

2.25

0.59

SEGMENT INFORMATION (Tables)

9 Months Ended

Jul. 31, 2023

Segment Information [Abstract]

Schedule of Geographic Information

Geographic information is approximately as follows:

	For the Three Months Ended						For the Nine Months Ended
	July 31,						July 31,
	2023			2022			2023			2022

Mexico	$	(161,000	)	$	(110,000	)	$	(372,000	)	$	(2,344,000	)
Kazakhstan		(3,000	)		—			(3,000	)		—
Canada		(313,000	)		95,000			(925,000	)		(549,000	)
Net Loss	$	(477,000	)	$	(15,000	)	$	(1,300,000	)	$	(2,893,000	)

Schedule of the Allocation of Assets by Segment

The following table details the allocation of assets included in the accompanying balance sheet at July 31, 2023:

	Canada		Mexico		Total
Cash and cash equivalents	$	241,000	$	—	$	241,000
Other receivables		5,000		—		5,000
Prepaid expenses and deposits		19,000		5,000		24,000
Due from related party		3,000		—		3,000
Value-added tax receivable, net		—		110,000		110,000
Office and mining equipment, net		—		133,000		133,000
Property concessions		—		5,004,000		5,004,000
	$	268,000	$	5,252,000	$	5,520,000

	Canada		Mexico		Total
Cash and cash equivalents	$	876,000	$	11,000	$	887,000
Value-added tax receivable, net		—		127,000		127,000
Other receivables		3,000		—		3,000
Prepaid expenses and deposits		45,000		4,000		49,000
Due from related party		23,000		—		23,000
Office and mining equipment, net		—		144,000		144,000
Property concessions		—		5,020,000		5,020,000
	$	947,000	$	5,306,000	$	6,253,000

ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN (Details)				1 Months Ended	9 Months Ended
	Sep. 05, 2023 USD ($)	Oct. 31, 2022 USD ($)	Jan. 01, 2018	Sep. 24, 2021 shares	Jul. 31, 2023 USD ($) shares	Jul. 31, 2022 shares	Mar. 09, 2023 shares	Jun. 30, 2022 $ / shares shares	Feb. 17, 2022 shares	Dec. 31, 2021 $ / shares shares	Aug. 12, 2020
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN (Details) [Line Items]
Percentage of purchase shares			70.00%
Payment amount (in Dollars) \| $					$ 518,000
Common shares							625,000		507,814
Common shares of Arras at a price \| (per share)								$ 1.5		$ 1
Accumulated deficit (in Dollars) \| $					138,694,000
Cash and cash equivalents (in Dollars) \| $					241,000
Third-party finance amount (in Dollars) \| $	$ 9,500,000	$ 23,196			$ 2,790
Common Stock [Member]
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN (Details) [Line Items]
Stock issued during period, shares					625,000	507,814
Common shares								852,262		600,000
Beskauga Property [Member]
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN (Details) [Line Items]
Ownership interest acquired											100.00%
Stock issued during period, shares				36,000,000
Arras [Member]
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN (Details) [Line Items]
Stock issued during period, shares				34,547,838
Company Retained [Member]
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN (Details) [Line Items]
Stock issued during period, shares				1,452,162

NET LOSS PER SHARE (Details) - shares	Jul. 31, 2023	Jul. 31, 2022
Net Loss Per Share [Abstract]
Shares exercise	4,371,289	5,165,039

DUE FROM RELATED PARTY (Details) - USD ($)			9 Months Ended
DUE FROM RELATED PARTY (Details) - USD ($)	Sep. 05, 2023	Oct. 31, 2022	Jul. 31, 2023
Due from Related Party [Abstract]
Due from related party	$ 9,500,000	$ 23,196	$ 2,790

VALUE-ADDED TAX RECEIVABLE (Details) - USD ($)	Jul. 31, 2023	Oct. 31, 2022
Mexico [Member]
VALUE-ADDED TAX RECEIVABLE (Details) [Line Items]
Value-added tax	$ 109,714	$ 127,036

VALUE-ADDED TAX RECEIVABLE (Details) - Schedule of the Changes in the Allowance for Uncollectible VAT	9 Months Ended
	Jul. 31, 2023 USD ($)
Schedule of the changes in the allowance for uncollectible VAT [Abstract]
Allowance for uncollectible VAT, Beginning	$ 449,219
Provision for VAT receivable allowance	49,532
Foreign currency translation adjustment	85,494
Allowance for uncollectible VAT, Ending	$ 584,245

OFFICE AND MINING EQUIPMENT (Details) - Schedule of Office and Mining Equipment - USD ($)	Jul. 31, 2023	Oct. 31, 2022
Property, Plant and Equipment [Line Items]
Office and mining equipment, gross	$ 836,220	$ 836,220
Less: Accumulated depreciation	(702,840)	(692,652)
Office and mining equipment, net	133,380	143,568
Mining equipment [Member]
Property, Plant and Equipment [Line Items]
Office and mining equipment, gross	396,153	396,153
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Office and mining equipment, gross	92,873	92,873
Buildings and structures [Member]
Property, Plant and Equipment [Line Items]
Office and mining equipment, gross	185,724	185,724
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Office and mining equipment, gross	74,236	74,236
Well equipment [Member]
Property, Plant and Equipment [Line Items]
Office and mining equipment, gross	39,637	39,637
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Office and mining equipment, gross	$ 47,597	$ 47,597

PROPERTY CONCESSIONS (Details)	9 Months Ended
PROPERTY CONCESSIONS (Details)	Jul. 31, 2023 USD ($)
Property Concessions [Abstract]
Property concessions
Capitalized property	$ 15,541

PROPERTY CONCESSIONS (Details) - Schedule of Property Concessions	9 Months Ended
	Jul. 31, 2023 USD ($)
Schedule of Property Concessions [Abstract]
Property concessions – October 31, 2022	$ 5,019,927
Impairment	(15,541)
Property concessions – April 30, 2023	$ 5,004,386

GOODWILL (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
GOODWILL (Details) - USD ($)	Jul. 31, 2023	Jul. 31, 2022	Apr. 30, 2022	Jul. 31, 2023	Jul. 31, 2022
Goodwill [Abstract]
Goodwill impairment amount			$ 2,058,031		$ 2,058,031

GOODWILL (Details) - Schedule of Goodwill Balance - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Apr. 30, 2022	Jul. 31, 2023	Jul. 31, 2022
Schedule of Goodwill Balance [Abstract]
Goodwill – October 31, 2021			$ 2,058,031		$ 2,058,031
Impairment			(2,058,031)		$ (2,058,031)
Goodwill – April 30, 2022

LOAN PAYABLE (Details)			1 Months Ended
LOAN PAYABLE (Details)	Jan. 31, 2022	Jan. 31, 2021 CAD ($)	Jun. 30, 2020 CAD ($)	Jan. 31, 2021 USD ($)	Jan. 31, 2021 CAD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2020 CAD ($)
LOAN PAYABLE (Details) [Line Items]
Loan received				$ 15,615		$ 29,531
CEBA [Member]
LOAN PAYABLE (Details) [Line Items]
Loan received					$ 20,000		$ 40,000
Maturity date	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2022
Repayment under initial term		$ 60,000	$ 30,000
Principal amount forgiven		$ 20,000	$ 10,000
Interest rate		5.00%	5.00%
Additional loan				50.00%	50.00%
CEBA [Member] \| Minimum [Member]
LOAN PAYABLE (Details) [Line Items]
Maturity date			Jan. 01, 2023
CEBA [Member] \| Maximum [Member]
LOAN PAYABLE (Details) [Line Items]
Maturity date			Dec. 31, 2025
Additional Loan Forgivable [Member] \| CEBA [Member]
LOAN PAYABLE (Details) [Line Items]
Maturity date		Dec. 31, 2025

LOAN PAYABLE (Details) - Schedule of Loan Payable	9 Months Ended
LOAN PAYABLE (Details) - Schedule of Loan Payable	Jul. 31, 2023 USD ($)
Schedule of Loan Payable [Abstract]
Loan payable beginning balance	$ 43,959
Foreign currency translation adjustment	1,575
Loan payable ending balance	$ 45,534

COMMON STOCK (Details)	Jul. 31, 2023 $ / shares	Mar. 09, 2023 USD ($) $ / shares shares	Mar. 09, 2023 CAD ($) shares	Oct. 31, 2022 $ / shares	Feb. 17, 2022 USD ($) $ / shares shares	Feb. 17, 2022 CAD ($) shares
Common Stock [Line Items]
Shares of common stock \| shares		625,000	625,000		507,814	507,814
Common stock per share \| $ / shares	$ 0.01	$ 0.14		$ 0.01	$ 0.25
Payment of accrued management bonuses		$ 88,411	$ 121,875		$ 128,094	$ 162,500

STOCK OPTIONS (Details) - USD ($)	9 Months Ended
STOCK OPTIONS (Details) - USD ($)	Jul. 31, 2023	Jul. 31, 2022
STOCK OPTIONS (Details) [Line Items]
Contractual term	5 years
Granted options to acquire	150,000
Weighted-average grant-date fair value	$ 0.07
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period	3,300,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 0.14
Forfeiture rate	0.00%
Recognized stock based compensation costs	$ 66,053	$ 251,429
Unrecognized compensation expense	$ 32,552
2019 Plan [Member]
STOCK OPTIONS (Details) [Line Items]
Total shares outstanding, percentage	10.00%
Grant of stock bonuses shares	15,000,000
Minimum [Member]
STOCK OPTIONS (Details) [Line Items]
Vesting period	2 years

STOCK OPTIONS (Details) - Schedule of Summary of the Range of Assumptions Used to Value Stock Options Granted	9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Schedule of Summary of the Range of Assumptions Used to Value Stock Options Granted [Abstract]
Dividend yield
Minimum [Member]
Schedule of Summary of the Range of Assumptions Used to Value Stock Options Granted [Abstract]
Expected volatility	74.00%	81.00%
Risk-free interest rate	3.83%	1.60%
Expected term (in years)	2 years 6 months	2 years 6 months
Maximum [Member]
Schedule of Summary of the Range of Assumptions Used to Value Stock Options Granted [Abstract]
Expected volatility	81.00%	87.00%
Risk-free interest rate	3.96%	1.74%
Expected term (in years)	3 years 6 months	3 years 6 months

STOCK OPTIONS (Details) - Schedule of Summary of Stock Option Activity	9 Months Ended
	Jul. 31, 2023 USD ($) $ / shares shares
Schedule of Summary of Stock Option Activity [Abstract]
Shares, Outstanding beginning Balance \| shares	3,193,750
Weighted Average Exercise Price, Outstanding beginning Balance \| $ / shares	$ 0.25
Weighted Average Remaining Contractual Life (Years), Outstanding beginning Balance	4 years 3 months
Aggregate Intrinsic Value, Outstanding beginning Balance \| $
Shares, Granted \| shares	150,000
Weighted Average Exercise Price, Granted \| $ / shares	$ 0.14
Shares, Cancelled \| shares	(300,000)
Weighted Average Exercise Price, Cancelled \| $ / shares	$ 0.24
Shares, Expired \| shares	(643,750)
Weighted Average Exercise Price, Expired \| $ / shares	$ 1.27
Shares, Outstanding closing balance \| shares	2,400,000
Weighted Average Exercise Price, Outstanding closing balance \| $ / shares	$ 0.23
Weighted Average Remaining Contractual Life (Years), Outstanding closing balance	3 years 7 months 13 days
Aggregate Intrinsic Value, Outstanding closing balance \| $
Shares, Exercisable \| shares	1,550,000
Weighted Average Exercise Price, Exercisable \| $ / shares	$ 0.23
Weighted Average Remaining Contractual Life (Years), Exercisable	2 years 7 months 2 days
Aggregate Intrinsic Value, Exercisable \| $

STOCK OPTIONS (Details) - Schedule of Summarized Information About Stock Options Outstanding and Exercisable	9 Months Ended
	Jul. 31, 2023 $ / shares shares
Options Outstanding [Member] \| Stock Options [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price	$ 0.24
Number Outstanding (in Shares) \| shares	2,250,000
Weighted Average Remaining Contractual Life (Years)	3 years 6 months 21 days
Weighted Average Exercise Price	$ 0.24
Options Outstanding [Member] \| Stock Options One [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price	$ 0.14
Number Outstanding (in Shares) \| shares	150,000
Weighted Average Remaining Contractual Life (Years)	4 years 7 months 13 days
Weighted Average Exercise Price	$ 0.14
Options Exercisable [Member] \| Stock Options [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number Exercisable (in Shares) \| shares	1,500,000
Weighted Average Exercise Price	$ 0.24
Options Exercisable [Member] \| Stock Options One [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number Exercisable (in Shares) \| shares	50,000
Weighted Average Exercise Price	$ 0.14

WARRANTS (Details)	1 Months Ended
WARRANTS (Details)	Aug. 31, 2022 $ / shares shares
WARRANTS (Details) [Line Items]
Weighted average exercise price	$ 0.59
Private Placement [Member]
WARRANTS (Details) [Line Items]
Number of warrants issued (in Shares) \| shares	1,971,289
Warrant [Member]
WARRANTS (Details) [Line Items]
Weighted average exercise price	$ 0.34

WARRANTS (Details) - Schedule of Warrant Activity - Warrant [Member] - USD ($)

9 Months Ended

12 Months Ended

Jul. 31, 2023

^[1]

Oct. 31, 2022

Schedule of Warrant Activity [Abstract]

1,971,289

Weighted Average Exercise Price

$ 0.59

Weighted Average Remaining Contractual Life (Years)

2 years 3 months

2 years 11 months 26 days

Aggregate Intrinsic Value

[1]

Pursuant to the terms of the Separation and Distribution Agreement, dated as of August 31, 2021, between Silver Bull and Arras entered into in connection with the Distribution (Note 1), 1,971,289 warrants with a weighted average exercise price of $0.59 are exercisable into one share of common stock of the Company and one common share of Arras. The Company will receive $0.34 of the proceeds from the exercise of each of these warrants and the remaining proceeds will be paid to Arras.

WARRANTS (Details) - Schedule of Warrants Outstanding and Exercisable	9 Months Ended
	Jul. 31, 2023 $ / shares shares
Schedule of Warrants Outstanding and Exercisable [Abstract]
Exercise Price	$ 0.59
Number Outstanding (in Shares) \| shares	1,971,289
Weighted Average Remaining Contractual Life (Years)	2 years 3 months
Weighted Average Exercise Price	$ 0.59

FINANCIAL INSTRUMENTS (Details)	9 Months Ended
FINANCIAL INSTRUMENTS (Details)	Jul. 31, 2023 USD ($)	Jul. 31, 2023 CAD ($)	Feb. 28, 2023 USD ($)	Feb. 28, 2023 MXN ($)	Oct. 31, 2022 USD ($)
FINANCIAL INSTRUMENTS (Details) [Line Items]
Canada deposit insurance corporation amount (in Dollars)		$ 100,000
Cash balances not insured					$ 10,702
Cash balance			$ 19,355	$ 349,884
Cash and cash equivalents	139,637				369,551
Working capital	526,482
Cash and cash equivalents	$ 241,213				886,728
Interest rate	1.00%
Reduction interest income amount	$ 3,437
Depreciation percentage	5.00%	5.00%
Depreciation value	$ 25,000
CDN [Member]
FINANCIAL INSTRUMENTS (Details) [Line Items]
Cash balances not insured	$ 165,144				$ 802,761

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2023	Oct. 01, 2020	Feb. 15, 2016	May 20, 2014
Commitments and Contingencies [Abstract]
Net smelter return royalty	2.00%
Total payments	$ 6,875
Interest rate per annum				6.00%
Net amount percentage	6.00%
Agreement payment amount		$ 5,000	$ 5,900

SEGMENT INFORMATION (Details) - Schedule of Geographic Information - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
SEGMENT INFORMATION (Details) - Schedule of Geographic Information [Line Items]
Net Loss	$ (477,000)	$ (15,000)	$ (1,300,000)	$ (2,893,000)
Mexico [Member]
SEGMENT INFORMATION (Details) - Schedule of Geographic Information [Line Items]
Net Loss	(161,000)	(110,000)	(372,000)	(2,344,000)
Kazakhstan [Member]
SEGMENT INFORMATION (Details) - Schedule of Geographic Information [Line Items]
Net Loss	(3,000)		(3,000)
Canada [Member]
SEGMENT INFORMATION (Details) - Schedule of Geographic Information [Line Items]
Net Loss	$ (313,000)	$ 95,000	$ (925,000)	$ (549,000)

SEGMENT INFORMATION (Details) - Schedule of the Allocation of Assets by Segment - USD ($)	Jul. 31, 2023	Oct. 31, 2022
Segment Reporting, Asset Reconciling Item [Line Items]
Cash and cash equivalents	$ 241,000	$ 887,000
Other receivables	5,000	3,000
Prepaid expenses and deposits	24,000	49,000
Due from related party	3,000	23,000
Value-added tax receivable, net	110,000	127,000
Office and mining equipment, net	133,000	144,000
Property concessions	5,004,000	5,020,000
Total	5,520,000	6,253,000
Canada [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Cash and cash equivalents	241,000	876,000
Other receivables	5,000	3,000
Prepaid expenses and deposits	19,000	45,000
Due from related party	3,000	23,000
Value-added tax receivable, net
Office and mining equipment, net
Property concessions
Total	268,000	947,000
Mexico [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Cash and cash equivalents		11,000
Other receivables
Prepaid expenses and deposits	5,000	4,000
Due from related party
Value-added tax receivable, net	110,000	127,000
Office and mining equipment, net	133,000	144,000
Property concessions	5,004,000	5,020,000
Total	$ 5,252,000	$ 5,306,000

SUBSEQUENT EVENT (Details) - USD ($) $ in Millions		9 Months Ended
SUBSEQUENT EVENT (Details) - USD ($) $ in Millions	Sep. 05, 2023	Jul. 31, 2023
SUBSEQUENT EVENT (Details) [Line Items]
Funder’s capital outlay percentage		30.00%
Subsequent Event [Member]
SUBSEQUENT EVENT (Details) [Line Items]
Operating expenses	$ 9.5