("Amaroq" or the "Corporation")
Q3 2022 Financial Results and 2023 Objectives
The Financial Statements and the accompanying Management Discussion and Analysis are available on the Corporation's website at www.amaroqminerals.com and will be filed under the Corporation's SEDAR profile at www.sedar.com later today. All figures are in Canadian dollars unless otherwise noted.
Q3 2022 Highlights
- Significant progress across Amaroq's portfolio within
Greenland during the period, with work plans completed on schedule and within budget. - Publication of an updated Nalunaq Mineral Resource Estimate (MRE) with reported Total Inferred Mineral Resource of 355.0Kt @ 28.0g/t Au for 320Koz gold, and confirming the project as falling within the top 2% of deposits in terms of grade globally.
- Commencement of the planning stages of a bulk sampling project at Nalunaq to assess the optimal path forward for mine development, and working towards first cashflow generation.
-
Additional drilling completed across two further projects at
Sava and atVagar Ridge , with results expected in Q4 and follow up exploration and drilling planned for 2023. - Geophysical surveys completed at Nanoq and North Sava, with the results currently being processed with further ground exploration conducted in the Eagle's Nest and Kobberminbugt areas.
C$11m allocated to exploration and development of the Corporation's significant Greenlandic assets in the nine months endedSeptember 30, 2022 .
Post-period Highlights
- Promising discovery of Copper, Molybdenum and Gold at the
Sava licence during the 2022 exploration programme. -
Completion of
£30m Capital Fundraising (circaC$46.4 million ) inLondon andIceland to accelerate development of the Company's precious metals portfolio. -
Signing of final documentation in relation to the ACAM joint venture for the exploration and development of Amaroq's strategic mineral assets and receipt of initial
£18m funding (circaC$28.5 million ) is expected to close in Q1 2023, subject to limited regulatory conditions being satisfied. -
Listing of Icelandic Depository Receipts on the Nasdaq First North Growth Market in
Iceland with the first day of trading beingNovember 1, 2022 .
2023 Precious Metals Objectives
- Focus on progressing Nalunaq to the next phase of development, to underpin the development of the wider portfolio.
- Nalunaq: Extraction of an initial bulk sample to elevate the Inferred Mineral Resources to the Indicated category, provide mining access to the orebody and demonstrate revenue generation potential. Drilling programme to take place, targeting an extension to the Inferred Resources in the Mountain Block and to generate further targets in the Welcome Block.
Vagar Ridge : Following limited drilling during 2022 due to weather conditions, Amaroq will finalize the scout drilling programme to improve the understanding of the geology and mineralisation of the discovery.- Nanoq: Scout drilling programme to take place following geophysical results, targeting surface exposures to improve understanding of the geology and structure.
- Regional: Gold target generation programme will continue across the Vagar licence and the greater area.
2023 Strategic Minerals Objectives
- Accelerate exploration of
Strategic Minerals assets in line with the ACAM Joint Venture agreement. Sava / North Sava: Further scout drilling on 3+ targets as well as infill drilling at Target South and Target West. Systematic surface sampling to expand Target North and define further iron oxide, copper, gold (IOCG) prospectivity.- Stendalen: Airborne geophysical survey and a first strategraphic drill hole through the prospective geological units.
- Paatasoq: Ground-based targeting to take place across Gardar age intrusion targeting Rare Earth mineralisation
- Kobberminebugt: Airborne geophysical survey to assess the location, size and depth of the skarn style mineralisation.
2023 Operational Priorities
- Finalization of ABD Solutions survey to assess the suitability of the Nalunaq site for vehicle automation. Amaroq will continue discussions with ABD Solutions to determine the next steps.
- Amaroq's development programme will require significant equipment and the Company will be evaluating procurement options in 2023 to ensure availability of equipment and services.
-
Amaroq is in dialogue with the Greenlandic government and a team of experts to assess potential for green energy production in
Greenland . The Company's priority focus is to establish how green energy can be sourced to supply Amaroq's sites and how the Company can cooperate with the government to help facilitate the development of green energy withinGreenland .
Eldur Olafsson, CEO of Amaroq, commented:
"Amaroq is now the most active private investor in
"I am also pleased to present our priority objectives for 2023. We have developed an exciting programme to accelerate growth across our portfolio, and I look forward to providing an update on our progress."
Selected Financial Information
The following selected financial data is extracted from the Financial Statements for the three and nine months ended
Financial Results
Three months ended |
Nine months ended | |||
2022$ | 2021$ | 2022$ | 2021$ | |
Exploration and evaluation expenses | 5,567,361 | 4,196,019 | 11,003,192 | 7,441,215 |
General and administrative | 1,859,725 | 3,022,738 | 6,946,432 | 7,061,387 |
Net loss and comprehensive loss | 7,012,481 | 7,008,968 | 17,472,618 | 14,874,983 |
Basic and diluted loss per common share | (0.04) | (0.04) | (0.10) | (0.08) |
Financial Position
As at |
As at | |
2022$ | 2021$ | |
Cash on hand | 11,032,487 | 27,324,459 |
Total assets | 26,028,307 | 42,781,664 |
Total current liabilities | 1,227,741 | 2,100,084 |
Shareholders' equity | 24,124,912 | 39,968,502 |
Working capital | 10,065,234 | 25,542,242 |
Enquiries:
Eldur Olafsson, Executive Director and CEO
+354 665 2003
eo@amaroqminerals.com
+44 (0)7713 126727
ew@amaroqminerals.com
Simon Mensley
+44 (0) 20 7710 7600
+44 (0) 20 7886 2500
SI
+44 (0) 1483 413500
Camarco (Financial PR)
+44 (0) 20 3757 4980
For Company updates:
Follow @Amaroq_minerals on Twitter
Consolidated Statements of Financial Position
(Unaudited, in Canadian Dollars)
As at | As at | ||
Notes | 2022 | 2021 | |
$ | $ | ||
ASSETS | |||
Current assets | |||
Cash | 11,032,487 | 27,324,459 | |
Sales tax receivable | 65,431 | 51,250 | |
Prepaid expenses and others | 195,057 | 266,617 | |
Total current assets | 11,292,975 | 27,642,326 | |
Non-current assets | |||
Deposit | 27,944 | 9,805 | |
Escrow account for environmental monitoring | 396,953 | 424,637 | |
Mineral properties | 3 | 62,244 | 62,244 |
Capital assets | 4 | 14,248,191 | 14,642,652 |
Total non-current assets | 14,735,332 | 15,139,338 | |
TOTAL ASSETS | 26,028,307 | 42,781,664 | |
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Trade and other payables | 1,156,834 | 2,049,249 | |
Lease liabilities - current portion | 5 | 70,907 | 50,835 |
Total current liabilities | 1,227,741 | 2,100,084 | |
Non-current liabilities | |||
Lease liabilities | 5 | 675,654 | 713,078 |
Total non-current liabilities | 675,654 | 713,078 | |
Total liabilities | 1,903,395 | 2,813,162 | |
Equity | |||
Capital stock | 88,726,405 | 88,500,205 | |
Contributed surplus | 4,703,551 | 3,300,723 | |
Accumulated other comprehensive loss | (36,772) | (36,772) | |
Deficit | (69,268,272) | (51,795,654) | |
Total equity | 24,124,912 | 39,968,502 | |
TOTAL LIABILITIES AND EQUITY | 26,028,307 | 42,781,664 | |
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
Consolidated Statements of Comprehensive Loss
(Unaudited, in Canadian Dollars)
Three monthsended | Nine monthsended | ||||
Notes | 2022 | 2021 | 2022 | 2021 | |
Expenses | |||||
Exploration and evaluation expenses | 7 | 5,567,361 | 4,196,019 | 11,003,192 | 7,441,215 |
General and administrative | 8 | 1,859,725 | 3,022,738 | 6,946,432 | 7,061,387 |
Foreign exchange loss (gain) | (391,133) | (185,986) | (417,826) | 461,705 | |
Operating loss | 7,035,953 | 7,032,771 | 17,531,798 | 14,964,307 | |
Other expenses (income) | |||||
Interest income | (32,837) | (33,700) | (87,554) | (119,629) | |
Finance costs | 9,365 | 9,897 | 28,374 | 30,305 | |
Net loss and comprehensive loss | (7,012,481) | (7,008,968) | (17,472,618) | (14,874,983) | |
Weighted average number of common shares outstanding - basic and diluted | 177,341,889 | 177,098,737 | 177,184,305 | 177,098,737 | |
Basic and diluted loss per common share | (0.04) | (0.04) | (0.10) | (0.08) | |
Consolidated Statements of Changes in Equity
(Unaudited, in Canadian Dollars)
Number of common sharesoutstanding | CapitalStock | Contributed surplus | Accumulated other comprehensive loss | Deficit | TotalEquity | ||
$ | $ | $ | $ | $ | |||
Balance at | 177,098,737 | 88,500,205 | 2,925,952 | (36,772) | (27,106,415) | 64,282,970 | |
Net loss and comprehensive loss | - | - | - | - | (14,874,983) | (14,874,983) | |
Stock-based compensation | - | - | 360,000 | - | - | 360,000 | |
Balance at | 177,098,737 | 88,500,205 | 3,285,952 | (36,772) | (41,981,398) | 49,767,987 | |
Balance at | 177,098,737 | 88,500,205 | 3,300,723 | (36,772) | (51,795,654) | 39,968,502 | |
Net loss and comprehensive loss | - | - | - | - | (17,472,618) | (17,472,618) | |
Options exercised | 260,000 | 226,200 | (96,200) | - | - | 130,000 | |
Stock-based compensation | - | - | 1,499,028 | - | - | 1,499,028 | |
Balance at | 177,358,737 | 88,726,405 | 4,703,551 | (36,772) | (69,268,272) | 24,124,912 |
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
Consolidated Statements of Cash Flows
(Unaudited, in Canadian Dollars)
Notes | Nine months ended | ||
2022 | 2021 | ||
$ | $ | ||
Operating activities | |||
Net loss for the period | (17,472,618) | (14,874,983) | |
Adjustments for: | |||
Depreciation | 4 | 638,039 | 190,309 |
Stock-based compensation | 1,499,028 | 360,000 | |
Other expenses | 9,048 | - | |
Foreign exchange | (413,443) | 403,826 | |
(15,739,946) | (13,920,848) | ||
Changes in non-cash working capital items: | |||
Sales tax receivable | (14,181) | 7,338 | |
Prepaid expenses and others | 71,561 | (30,975) | |
Trade and other payables | (843,483) | 2,273,639 | |
(786,103) | 2,250,002 | ||
Cash flow used in operating activities | (16,526,049) | (11,670,846) | |
Investing activities | |||
Acquisition of capital assets | 4 | (301,958) | (5,415,805) |
Deposit on order | - | (6,610,868) | |
Cash flow used in investing activities | (301,958) | (12,026,673) | |
Financing activities | |||
Principal repayment - lease liabilities | 5 | (39,659) | (49,115) |
Exercise of stock options | 130,000 | - | |
Cash flow from financing activities | 90,341 | (49,115) | |
Net change in cash before effects of exchange rate changes on cash during the period | (16,737,666) | (23,746,634) | |
Effects of exchange rate changes on cash | 445,694 | (276,137) | |
Net change in cash during the period | (16,291,972) | (24,022,771) | |
Cash, beginning of period | 27,324,459 | 61,874,999 | |
Cash, end of period | 11,032,487 | 37,852,228 | |
Supplemental cash flow information | |||
Interest received | 87,554 | 119,629 | |
Additions in capital assets included in trade and other payables | - | 551,762 | |
Exercise of stock options credited to capital stock | 96,200 | - | |
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
Condensed Notes to the interim Consolidated Financial Statements
Three and nine months ended
(Unaudited, in Canadian Dollars)
1. NATURE OF OPERATIONS, BASIS OF PRESENTATION
These unaudited condensed interim consolidated financial statements for the three and nine months ended
1.1 Basis of presentation
The Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the
The Financial Statements should be read in conjunction with the annual financial statements for the year ended
2. CRITICAL ACCOUNTING JUDGMENTS AND ASSUMPTIONS
The preparation of the Financial Statements requires Management to make judgments and form assumptions that affect the reported amounts of assets and liabilities at the date of the Financial Statements and reported amounts of expenses during the reporting period. On an ongoing basis, Management evaluates its judgments in relation to assets, liabilities and expenses. Management uses past experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgments. Actual outcomes may differ from these estimates under different assumptions and conditions.
In preparing the Financial Statements, the significant judgements made by Management in applying the Corporation accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Corporation's audited annual financial statements for the year ended
3. MINERAL PROPERTIES
As at | Additions | As at | |
$ | $ | $ | |
Nalunaq - Au | 1 | - | 1 |
Tartoq - Au | 18,431 | - | 18,431 |
Vagar - Au | 11,103 | - | 11,103 |
Nuna Nutaaq - Au | 6,076 | - | 6,076 |
Anoritooq - Au | 6,389 | - | 6,389 |
Naalagaaffiup Portornga - | 6,334 | - | 6,334 |
Saarloq - | 7,348 | - | 7,348 |
6,562 | - | 6,562 | |
Total mineral properties | 62,244 | - | 62,244 |
As at | Additions | As at | |
$ | $ | $ | |
Nalunaq | 1 | - | 1 |
Tartoq | 18,431 | - | 18,431 |
Vagar | 11,103 | - | 11,103 |
Nuna Nutaaq | 6,076 | - | 6,076 |
Anoritooq | 6,389 | - | 6,389 |
Naalagaaffiup Portornga | 6,334 | - | 6,334 |
Saarloq | 7,348 | - | 7,348 |
6,562 | - | 6,562 | |
Total mineral properties | 62,244 | - | 62,244 |
4. CAPITAL ASSETS
Field equipment and infrastruc- ture | Vehicles and rolling stock | Equipment (including software) | Construc-tion In Progress | Right-of-use assets | Total | |
$ | $ | $ | $ | $ | $ | |
Nine months ended | ||||||
Opening net book value | 1,989,114 | 4,304,709 | 156,011 | 7,452,668 | 740,150 | 14,642,652 |
Additions | - | - | 179,041 | 69,417 | - | 248,458 |
Adjustment | - | - | - | - | (4,880) | (4,880) |
Depreciation | (193,772) | (330,247) | (54,030) | - | (59,990) | (638,039) |
Closing net book value | 1,795,342 | 3,974,462 | 281,022 | 7,522,085 | 675,280 | 14,248,191 |
As at | ||||||
Cost | 2,351,041 | 4,605,320 | 364,919 | 7,522,085 | 836,200 | 15,679,565 |
Accumulated depreciation | (555,699) | (630,858) | (83,897) | - | (160,920) | (1,431,374) |
Closing net book value | 1,795,342 | 3,974,462 | 281,022 | 7,522,085 | 675,280 | 14,248,191 |
4. CAPITAL ASSETS (CONT'D)
Depreciation of capital assets related to exploration and evaluation properties is being recorded in exploration and evaluation expenses in the consolidated statement of comprehensive loss, under depreciation. Depreciation of
As at
As of
5. LEASE LIABILITIES
As at | |
$ | |
Balance beginning | 763,913 |
Principal repayment | (39,659) |
Adjustment | 22,307 |
Balance ending | 746,561 |
Non-current portion - lease liabilities | (675,654) |
Current portion - lease liabilities | 70,907 |
The Corporation has one lease for its office. In
6. STOCK OPTIONS
An incentive stock option plan (the "Plan") was approved initially in 2017 and renewed by shareholders on
On
On
On
Changes in stock options are as follows:
Nine months ended | ||||
Number of options | Weighted average exercise price | |||
$ | ||||
Balance, beginning | 6,935,000 | 0.51 | ||
Granted | 4,212,395 | 0.60 | ||
Exercised | (260,000) | 0.50 | ||
Expired | (1,450,000) | 0.53 | ||
Balance, end | 9,437,395 | 0.55 | ||
Balance, end exercisable | 9,404,062 | 0.55 |
Stock options outstanding and exercisable as at
Number of options outstanding | Number of options exercisable | ExercisePrice | Expiry date |
$ | |||
1,360,000 | 1,360,000 | 0.45 | |
1,820,000 | 1,820,000 | 0.38 | |
100,000 | 66,667 | 0.50 | |
1,495,000 | 1,495,000 | 0.70 | |
3,650,000 | 3,650,000 | 0.60 | |
73,333 | 73,333 | 0.75 | |
39,062 | 39,062 | 0.64 | |
900,000 | 900,000 | 0.59 | |
9,437,395 | 9,404,062 |
7. EXPLORATION AND EVALUATION EXPENSES[SM1]
Three monthsended | Nine monthsended | |||
2022 | 2021 | 2022 | 2021 | |
$ | $ | $ | $ | |
Geochemistry | - | 517,772 | - | 517,772 |
Geology | 148,959 | 1,381,518 | 954,591 | 2,087,472 |
Lodging and on-site support | 177,655 | 167,332 | 212,910 | 231,855 |
Underground work | - | 29,929 | - | 48,518 |
Drilling | 2,427,592 | 870,296 | 3,718,119 | 1,158,056 |
Analysis | 23,246 | 21,365 | 164,628 | 105,946 |
Geophysics survey | 412,624 | - | 412,624 | - |
Transport | 168,180 | 12,863 | 311,395 | 35,276 |
Supplies and equipment | 143,489 | 1,997 | 503,647 | 1,997 |
Helicopter charter | 484,135 | 602,189 | 926,959 | 711,214 |
Logistic support | 689,739 | 477,654 | 791,847 | 563,769 |
Insurance | - | 32,490 | - | 41,197 |
Maintenance infrastructure | 706,700 | - | 2,450,075 | - |
Project Engineering costs | - | 56,573 | - | 1,792,705 |
Government fees | 2,584 | - | 10,478 | 22,766 |
Exploration and evaluation expenses before depreciation | 5,384,903 | 4,171,978 | 10,457,273 | 7,318,543 |
Depreciation | 182,458 | 24,041 | 545,919 | 122,672 |
Exploration and evaluation expenses | 5,567,361 | 4,196,019 | 11,003,192 | 7,441,215 |
8. GENERAL AND ADMINISTRATION
Three monthsended | Nine monthsended | |||
2022 | 2021 | 2022 | 2021 | |
$ | $ | $ | $ | |
Salaries and benefits | 557,721 | 700,186 | 1,799,488 | 1,755,147 |
Director's fees | 157,000 | 235,273 | 471,000 | 471,652 |
Professional fees | 783,765 | 731,888 | 1,808,377 | 1,978,837 |
Marketing and industry involvement | 112,174 | 220,622 | 414,852 | 576,954 |
Insurance | 68,784 | 169,437 | 274,455 | 435,779 |
Travel and other expenses | 97,019 | 847,998 | 481,589 | 1,150,363 |
Regulatory fees | 27,288 | 94,788 | 105,523 | 265,018 |
General and administration before following elements | 1,803,751 | 3,000,192 | 5,355,284 | 6,633,750 |
Stock-based compensation | 18,468 | - | 1,499,028 | 360,000 |
Depreciation | 37,506 | 22,546 | 92,120 | 67,637 |
General and administration | 1,859,725 | 3,022,738 | 6,946,432 | 7,061,387 |
9. SUBSEQUENT EVENTS
- Acquisition of Significant Strategic Mineral Land Package in
South Greenland
- Acquisition of Significant Strategic Mineral Land Package in
On
ACAM LP Joint Venture
On
- Fundraising and First North Listing
On
The Fundraising is complemented by the joint venture between the Corporation and ACAM, announced on
Certain officers and directors of the Corporation purchased an aggregate of 4,972,871 common shares for gross proceeds of
Further Information:
About
Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events and the future growth of the Company's business. In this press release there is forward-looking information based on a number of assumptions and subject to a number of risks and uncertainties, many of which are beyond the Company's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include but are not limited to the factors discussed under "Risk Factors" in the Final Prospectus available under the Company's profile on SEDAR at www.sedar.com. Any forward-looking information included in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable securities laws, the Company assumes no obligation to update or revise any forward-looking information to reflect new circumstances or events. No securities regulatory authority has either approved or disapproved of the contents of this press release. Neither
Glossary
Ag | silver |
Au | gold |
Bt | Billion tonnes |
Cu | copper |
g | grams |
g/t | grams per tonne |
km | kilometers |
Koz | thousand ounces |
m | meters |
Mo | molybdenum |
MRE | Mineral Resource Estimate |
Nb | niobium |
oz | ounces |
t | tonnes |
t/m3 | tonne per cubic meter |
U | uranium |
USD/ozAu | US Dollar per ounce of gold |
Zn | zinc |
Inside Information
This announcement contains inside information for the purposes of Article 7 of the
Qualified Person Statement
The Mineral Resource Estimate was prepared by Dr
The technical information presented in this press release has been approved by James Gilbertson CGeol, VP Exploration for
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