XML 32 R21.htm IDEA: XBRL DOCUMENT
v3.19.1

COMMITMENTS AND CONTINGENCIES | 3 Months Ended
--- | ---
Mar. 31, 2019
COMMITMENTS AND CONTINGENCIES |
COMMITMENTS AND CONTINGENCIES | NOTE 14 COMMITMENTS AND CONTINGENCIES Reclamation Obligations As part of its ongoing business and operations, the Company is required to provide bonding for its environmental reclamation obligations in the United States and Canada. Pursuant to the requirements imposed by the United States Bureau of Land Management (“BLM”), the Company has bonding obligations in Nevada of $19.9 million which primarily pertains to the Tonkin and the Gold Bar properties. Under Canadian regulations, the Company has bonding obligations of $15.4 million (C$20.6 million) with respect to the Black Fox Complex. Furthermore, under Canadian regulations, the Company was required to deposit approximately $0.1 million with respect to its Lexam properties in Timmins, which is recorded as restricted cash in Other assets. Surety Bonds The Company satisfies its reclamation bonding obligations in the United States and Canada through the use of surety bonds. These surety bonds are available for draw down by the beneficiary in the event the Company does not perform its reclamation obligations. If the specific reclamation requirements are met, the beneficiary of the surety bonds will release the instrument to the issuing entity. The Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements, through existing or alternative means, as they arise. As at March 31, 2019, the Company has a surety facility in place to cover all its bonding obligations, which include $20.0 million of bonding in Nevada and $15.4 million (C$20.6 million) of bonding in Canada. The terms of the facility carry an annual financing fee of 2% and no deposit requirements. Streaming Agreement As part of the acquisition of the Black Fox Complex in 2017, the Company assumed a gold purchase agreement (streaming contract) related to production, from certain claims. The Company is obligated to sell 8% of gold production from the Black Fox mine and 6.3% at the adjoining Pike River property (Black Fox Extension) to Sandstorm Gold Ltd. at the lesser of market price or $550 per ounce (with inflation adjustments of up to 2% per year) until 2090. The Company records revenue on these shipments based on the contract price at the time of delivery to the customer. During the three months ended March 31, 2019, the Company recorded revenue of $0.4 million (March 31, 2018 – $0.6 million). Long-term debt During the year ended December 31, 2018, the Company finalized on a $50.0 million term loan that must be used to finance Gold Bar construction and other general corporate purposes. The full amount of the term loan was drawn down in the year ended December 31, 2018, see Note 11 and Note 18 for details. Flow-Through Common Shares The Company raised $14.9 million (C$20.0 million) during 2018 ($10.0 million (C$12.9 million) during 2017) on a Canadian flow-through tax basis. The Company is required to spend this amount on Canadian exploration expenditures and renounce the associated tax benefit before December 31, 2019. The Company expects to meet this commitment. As at March 31, 2019, $0.4 million has been spent (March 31, 2018 – $ 1.2 million).

X
- Definition Represents information on rental expense, commitments and contingencies. + References No definition available. + Details
Name: | mux_RentalExpensesCommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | mux_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration