Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information Line Items | |
Entity Registrant Name | NORTHERN DYNASTY MINERALS LTD. |
Entity Central Index Key | 0001164771 |
Document Type | 40-F |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Entity Common Stock Shares Outstanding | 529,779,388 |
Document Annual Report | true |
Entity File Number | 001-32210 |
Entity Incorporation State Country Code | Z4 |
Entity Address Address Line 1 | 14th Floor, 1040 West Georgia Street |
Entity Address City Or Town | Vancouver |
Entity Address Country | CA |
Entity Address Postal Zip Code | V6E 4H1 |
City Area Code | 604 |
Icfr Auditor Attestation Flag | true |
Auditor Name | Deloitte LLP |
Auditor Location | Vancouver, Canada |
Auditor Firm Id | 1208 |
Local Phone Number | 684-6365 |
Security 12b Title | Common Shares, no par value |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Entity Interactive Data Current | No |
Document Registration Statement | false |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Business Contact [Member] | |
Document Information Line Items | |
Entity Address Address Line 1 | Suite 400 |
Entity Address Address Line 2 | 2711 Centerville Road |
Entity Address City Or Town | Wilmington |
Entity Address State Or Province | DE |
Entity Address Postal Zip Code | 19808 |
City Area Code | 800 |
Local Phone Number | 927-9800 |
Contact Personnel Name | Corporation Service Company |
Consolidated Statements of Fina
Consolidated Statements of Financial Position $ in Thousands | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) |
Non-current assets | ||
Restricted Cash | $ 785,000 | $ 791,000 |
Mineral property, plant and equipment | 134,339,000 | 135,646,000 |
Total non-current assets | 135,124,000 | 136,437,000 |
Current assets | ||
Amounts receivable and prepaid expenses | 1,867,000 | 1,477,000 |
Cash and cash equivalents | 22,291,000 | 42,460,000 |
Total current assets | 24,158,000 | 43,937,000 |
Total Assets | 159,282,000 | 180,374,000 |
Capital and reserves | ||
Share capital | 700,278,000 | 683,039,000 |
Reserves | 106,735,000 | 109,245,000 |
Deficit | (651,520,000) | (619,978,000) |
Total equity | 155,493,000 | 172,306,000 |
Non-current liabilities | ||
Trade and other payables | 1,365,000 | 657,000 |
Total non-current liabilities | 1,365,000 | 657,000 |
Current liabilities | ||
Payables to related parties | 376,000 | 848,000 |
Trade and other payables | 2,048,000 | 6,563,000 |
Total current liabilities | 2,424,000 | 7,411,000 |
Total liabilities | 3,789,000 | 8,068,000 |
Total Equity and Liabilities | $ 159,282,000 | $ 180,374,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses | ||
Exploration and evaluation expenses | $ (12,435) | $ (39,219) |
General and administrative expenses | (9,991) | (11,545) |
Legal, accounting and audit | (5,941) | (2,438) |
Share-based compensation | (2,858) | (9,342) |
Loss from operating activities | 31,225 | 62,544 |
Foreign exchange loss | 456 | 1,545 |
Interest income | (176) | (146) |
Finance expense | (67) | (117) |
Other income | (16) | (392) |
Gain on modification of lease | (16) | |
Gain (loss) on revaluation of warrant liabilities | 204 | |
Loss on disposal of plant and equipment | 2 | |
Net loss | 31,542 | 63,872 |
Items that may be subsequently reclassified to net loss | ||
Foreign exchange translation difference | 903 | 2,704 |
Other comprehensive loss | 903 | 2,704 |
Total comprehensive loss | $ 32,445 | $ 66,576 |
Basic and diluted loss per common share | $ 0.06 | $ 0.13 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | |
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | |
Operating activities | ||
Net loss | $ (31,542,000) | $ (63,872,000) |
Non-cash or non operating items | ||
Depreciation | 329,000 | 533,000 |
Gain on modification of lease | (16,000) | |
Interest on credit facility loans | 9,000 | |
Interest income | 176,000 | 146,000 |
Loss on disposal of plant and equipment | 2,000 | |
Loss on revaluation of warrant liabilities | 204,000 | |
Share-based compensation | 2,858,000 | 9,342,000 |
Unrealized exchange loss (gain) | 44,000 | 1,851,000 |
Changes in working capital items | ||
Amounts receivable and prepaid expenses | (17,000) | (550,000) |
Trade and other payables | (3,483,000) | (6,132,000) |
Payables to related parties | (474,000) | 941,000 |
Net cash used in operating activities | (32,475,000) | (57,820,000) |
Investing activities | ||
Interest received on cash and cash equivalents | 164,000 | 130,000 |
Net cash from investing activities | 164,000 | 130,000 |
Financing activities | ||
Proceeds from issuance of shares | 872,000 | 57,701,000 |
Transaction costs in the issuance of shares | (48,000) | (4,060,000) |
Proceeds from private placement of shares | 24,938,000 | |
Transaction costs for the private placement of shares | (232,000) | |
Proceeds from the exercise of share purchase options and warrants | 11,950,000 | 12,441,000 |
Early lease termination payment | (31,000) | |
Payments of principal portion of lease liabilities | (200,000) | (294,000) |
Repayment of credit facility loans and interest | (2,523,000) | |
Transaction costs on the At-the-Market Offering | (352,000) | |
Net cash from financing activities | 12,191,000 | 87,971,000 |
Net decrease in cash and cash equivalents | (20,120,000) | 30,281,000 |
Effect of exchange rate fluctuations on cash and cash equivalents | (49,000) | (1,859,000) |
Cash and cash equivalents - beginning balance | 42,460,000 | 14,038,000 |
Cash and cash equivalents - ending balance | $ 22,291,000 | $ 42,460,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | CAD ($) | USD ($) | Issued capital [member]CAD ($)shares | Issued capital [member]USD ($)shares | Equity Settled Share-Based Compensation ReserveCAD ($) | Foreign Currency Translation ReserveCAD ($) | Foreign Currency Translation ReserveUSD ($) | Investment Revaluation ReserveCAD ($) | Share Purchase WarrantsCAD ($) | Subscriptions Received for SharesCAD ($) | DeficitCAD ($) |
Balance, shares at Dec. 31, 2019 | shares | 422,942,680 | 422,942,680 | |||||||||
Balance, amount at Dec. 31, 2019 | $ 138,505,000 | $ 587,448,000 | $ 70,150,000 | $ 32,365,000 | $ (17,000) | $ 3,972,000 | $ 693,000 | $ (556,106,000) | |||
Statement [Line Items] | |||||||||||
Net loss | $ (63,872) | ||||||||||
Fair value allocated to shares issued on exercise of broker warrants | 247 | $ 247 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Additional transaction costs for prior year financings | (79,000) | $ 79 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Shares issued on exercise of options per option plan, shares | shares | 3,991,066 | 3,991,066 | |||||||||
Shares issued on exercise of options per option plan, amount | $ 3,936,000 | $ 3,936,000 | 0 | 0 | 0 | 0 | 0 | ||||
Shares issued upon exercise of warrants and options not issued per option plan, shares | shares | 13,634,385 | 13,634,385 | |||||||||
Shares issued upon exercise of warrants and options not issued per option plan, amount | 8,505,000 | $ 8,505,000 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Fair value allocated to shares issued on exercise of options and warrants | 0 | $ 3,863,000 | (2,474,000) | 0 | 0 | (1,389,000) | 0 | 0 | |||
Shares issued, net of transactions costs, shares | shares | 38,525,000 | 38,525,000 | |||||||||
Other comprehensive loss net of tax | (2,704,000) | (2,704,000) | 0 | 0 | 0 | 0 | |||||
Shares issued, net of transactions costs, amount | 53,720,000 | $ 53,720,000 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Shares issued pursuant to private placements, net of transaction costs, shares | shares | 29,953,500 | 29,953,500 | |||||||||
Shares issued pursuant to private placements, net of transaction costs, amount | 24,706,000 | $ 25,399,000 | 0 | 0 | 0 | 0 | (693,000) | 0 | |||
Share-based compensation | 9,342,000 | 0 | 9,342,000 | 0 | 0 | 0 | 0 | 0 | |||
Total comprehensive loss | (66,576,000) | ||||||||||
Balance, amount at Dec. 31, 2020 | 172,306,000 | $ 683,039,000 | 77,018,000 | 29,661,000 | (17,000) | 2,583,000 | 0 | 619,978,000 | |||
Balance, shares at Dec. 31, 2020 | shares | 509,046,631 | 509,046,631 | |||||||||
Statement [Line Items] | |||||||||||
Net loss | (31,542,000) | ||||||||||
Shares issued upon exercise of warrants and options not issued per option plan, shares | shares | 14,435,952 | 14,435,952 | |||||||||
Shares issued upon exercise of warrants and options not issued per option plan, amount | 9,358,000 | $ 9,358,000 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Fair value allocated to shares issued on exercise of options and warrants | 0 | $ 4,465,000 | (2,153,000) | 0 | 0 | (2,312,000) | 0 | 0 | |||
Shares issued, net of transactions costs, shares | shares | 1,212,805 | 1,212,805 | |||||||||
Other comprehensive loss net of tax | (903,000) | $ 903 | |||||||||
Shares issued, net of transactions costs, amount | 824,000 | $ 824,000 | 0 | 0 | 0 | 0 | 0 | ||||
Shares issued upon exercise of options per option plan, shares | shares | 5,084,000 | 5,084,000 | |||||||||
Shares issued upon exercise of options per option plan, amount | 2,592,000 | $ 2,592,000 | 0 | 0 | 0 | 0 | |||||
Share-based compensation | 2,858,000 | 0 | 2,858,000 | 0 | |||||||
Total comprehensive loss | (32,445,000) | ||||||||||
Balance, amount at Dec. 31, 2021 | $ 155,493,000 | $ 700,278,000 | $ 77,723,000 | $ 28,758,000 | $ (17,000) | $ 271,000 | $ 0 | $ (651,520,000) | |||
Balance, shares at Dec. 31, 2021 | shares | 529,779,388 | 529,779,388 |
Nature and Continuance of Opera
Nature and Continuance of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Nature and Continuance of Operations | |
Nature and Continuance of Operations | 1. NATURE AND CONTINUANCE OF OPERATIONS Northern Dynasty Minerals Ltd. (the "Company") is incorporated under the laws of the Province of British Columbia, Canada, and its principal business activity is the exploration of mineral properties. The Company is listed on the Toronto Stock Exchange ("TSX") under the symbol "NDM" and on the NYSE American Exchange ("NYSE American") under the symbol "NAK". The Company’s corporate office is located at 1040 West Georgia Street, 14 th The consolidated financial statements ("Financial Statements") of the Company as at and for the year ended December 31, 2021, include financial information for the Company and its subsidiaries (together referred to as the "Group" and individually as "Group entities"). The Company is the ultimate parent. The Group’s core mineral property interest is the Pebble Copper-Gold-Molybdenum-Silver-Rhenium Project (the "Pebble Project") located in Alaska, United States of America ("USA" or "US"). All US dollar amounts when presented are denoted "US$" and expressed in thousands, unless otherwise stated. The Group is in the process of exploring and developing the Pebble Project and has not yet determined whether the Pebble Project contains mineral reserves that are economically recoverable. The Group’s continuing operations and the underlying value and recoverability of the amounts shown for the Group’s mineral property interests is entirely dependent upon the existence of economically recoverable mineral reserves; the ability of the Group to obtain financing to complete the exploration and development of the Pebble Project; the Group obtaining the necessary permits to mine; and future profitable production or proceeds from the disposition of the Pebble Project. During the year ended December 31, 2021, the Group raised net cash proceeds of $824 from common share issuances (note 6(b)), and received $11,950 from the exercise of share purchase options and warrants (notes 6(c) – (d)). As of December 31, 2021, the Group had $22,291 (2020 – $42,460) in cash and cash equivalents for its operating requirements and working capital of $21,734 (2020 – $36,526). These Financial Statements have been prepared on the basis of a going concern, which assumes that the Group will be able to raise sufficient funds to continue its exploration and development activities and satisfy its obligations as they come due. During the years ended December 31, 2021 and 2020, the Group incurred a net loss of $31,542 and $63,872, respectively, and had a deficit of $651,520 as of December 31, 2021. The Group has prioritized the allocation of its financial resources to meet key corporate and Pebble Project expenditure requirements in the near term, including the funding of the appeal of the Record of Decision (the "ROD") (discussed below) and class action litigation (note 16(a)). Additional financing will be needed to progress any material expenditures at the Pebble Project and for working capital. Additional financing may include any of or a combination of debt, equity and/or contributions from possible new Pebble Project participants. The Group has an At-the-Market Offering Agreement ("ATM Agreement") in place, whereby the Group, at its sole discretion, can sell through the agent, up to US$14.5 million in common shares during the term of the ATM Agreement. During the year ended December 31, 2021, the Group sold common shares for gross proceeds of US$688 ($872) under the ATM Agreement (note 6(b)). There can be no assurances that the Group will be successful in obtaining additional financing when required. If the Group is unable to raise the necessary capital resources and generate sufficient cash flows to meet obligations as they come due, the Group may, at some point, consider reducing or curtailing its operations. As such, there is material uncertainty that raises substantial doubt about the Group’s ability to continue as a going concern. These Financial Statements do not reflect adjustments to the carrying values and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern, and such adjustments could be material. The Group, through the Pebble Limited Partnership ("Pebble Partnership"), initiated federal and state permitting for the Pebble Project under the National Environmental Protection Act ("NEPA") by filing documentation for a Clean Water Act ("CWA") 404 permit with the US Army Corps of Engineers ("USACE") in December 2017. The USACE published a draft Environmental Impact Statement ("EIS") in February 2019 and completed a 120-day public comment period thereon on July 2, 2019. In late July 2019, the US Environmental Protection Agency ("EPA") withdrew the determination initiated under Section 404(c) of the CWA in 2014 for the waters of Bristol Bay ("Proposed Determination"), which attempted to pre-emptively veto the Pebble Project before it received an objective, scientific regulatory review under NEPA. On July 24, 2020, the USACE published the final EIS. On November 25, 2020, the USACE issued a ROD rejecting the Pebble Partnership’s permit application, finding concerns with the proposed compensatory mitigation plan and determining the project would be contrary to the public interest. The ROD rejected the compensatory mitigation plan as "noncompliant" and determined the project would cause "significant degradation" and was contrary to the public interest. Based on this finding, the USACE rejected Pebble Partnership’s permit application under the CWA. On January 19, 2021, the Pebble Partnership submitted its request for appeal of the ROD with the USACE (the "RFA"). On February 24, 2021, the USACE notified the Pebble Partnership that the RFA is "complete and meets the criteria for appeal" and assigned a review officer ("RO") to oversee the administrative appeal process at that time and has since assigned a new RO. While federal regulations suggest the appeal should conclude within 90 days, and no case extend beyond one year, the USACE also indicated that due to the complexity of issues and volume of materials associated with the Pebble Project case, the review will take additional time. On June 1, 2021, the Group announced that the USACE had completed the ‘administrative record’ which will serve as a basis for its official review of the ROD. On October 29, 2021, the court granted the EPA’s motion for remand, and vacated the EPA’s 2019 withdrawal of the Proposed Determination decision, thus reinstating the Proposed Determination. The court declined to impose a schedule on the EPA’s proceedings on remand. The EPA subsequently extended the deadline to either withdraw the Proposed Determination or to prepare a Recommended Determination regarding the Pebble Project until May 31, 2022. The Group will continue to monitor these developments closely to determine the possible impacts to the project and permitting process, as it remains the Group’s position that the withdrawal of the preemptive veto by the EPA was sound and appropriate. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES (a) Statement of Compliance These Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") (b) Basis of Preparation These Financial Statements have been prepared on a historical cost basis using the accrual basis of accounting, except for cash flow information and for financial instruments classified as fair value through other comprehensive income, which are stated at their fair value (refer note 2(e)). The accounting policies set out below have been applied consistently to all periods presented in these Financial Statements unless otherwise stated. (c) Basis of Consolidation These Financial Statements incorporate the financial statements of the Company, the Company’s subsidiaries, and entities controlled by the Company and its subsidiaries listed below: Name of Subsidiary Place of Incorporation Principal Activity Percent owned 3537137 Canada Inc. 1 Canada Holding Company. Wholly-owned subsidiary of the Company. 100% Pebble Services Inc. Nevada, USA Management and services company. Wholly-owned subsidiary of the Company. 100% Northern Dynasty Partnership Alaska, USA Holds 99.9% interest in the Pebble Partnership and 100% of Pebble Mines. 100% (indirect) Pebble Limited Partnership ("Pebble Partnership") Alaska, USA Limited Partnership. Ownership and Exploration of the Pebble Project. 100% (indirect) Pebble Mines Corp. ("Pebble Mines") Delaware, USA General Partner. Holds 0.1% interest in the Pebble Partnership. 100% (indirect) Pebble West Claims Corporation 2 Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) Pebble East Claims Corporation 2 Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) Pebble Pipeline Corporation Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) Pebble Performance Dividend LLC Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) U5 Resources Inc. Nevada, USA Holding Company. Wholly-owned subsidiary of the Company. 100% Cannon Point Resources Ltd. British Columbia, Canada Not active. Wholly-owned subsidiary of the Company. 100% MGL Subco Ltd. ("MGL") British Columbia, Canada Not active. Wholly-owned subsidiary of the Company. 100% Delta Minerals Inc. ("Delta") British Columbia, Canada Not active. Wholly-owned subsidiary of MGL. 100% (indirect) Imperial Gold Corporation ("Imperial Gold") British Columbia, Canada Not active. Wholly-owned subsidiary of Delta. 100% (indirect) Yuma Gold Inc. Nevada, USA Not active. Wholly-owned subsidiary of Imperial Gold. 100% (indirect) Notes: 1. Holds a 20% interest in the Northern Dynasty Partnership. The Company holds the remaining 80% interest. 2. Both entities together hold 1,840 claims comprising the Pebble Project. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Company has power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); exposure, or rights, to variable returns from its involvement with the investee; and the ability to use its power over the investee to affect its returns. Intra-Group balances and transactions, including any unrealized income and expenses arising from intra-Group transactions, are eliminated in preparing the Financial Statements. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. (d) Foreign Currencies The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Group. The functional currency of U5 Resources Inc., Pebble Services Inc., Pebble Mines Corp., the Pebble Partnership and its subsidiaries, and Yuma Gold Inc. is the US dollar and for all other entities within the Group, the functional currency is the Canadian dollar. The functional currency determinations were conducted through an analysis of the factors for consideration identified in IAS 21, The Effects of Changes in Foreign Exchange Rates Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. The results and financial position of entities within the Group which have a functional currency that differs from that of the Group are translated into Canadian dollars as follows: (i) assets and liabilities for each statement of financial position are translated at the closing exchange rate at that date; (ii) income and expenses for each income statement are translated at average exchange rates for the period; and (iii) the resulting exchange differences are included in the foreign currency translation reserve within equity. (e) Financial Instruments On initial recognition, a financial asset is classified as measured at amortized cost; fair value through other comprehensive income ("FVTOCI") (debt / equity investment); or fair value through profit or loss ("FVTPL"). A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition. The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Classification of financial assets Amortized cost For a financial asset to be measured at amortized cost, it needs to meet both of the following conditions and not · it is held within a business model whose objective is to hold assets to collect contractual cash flows; and · its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group’s financial assets at amortized cost consist of restricted cash, amounts receivable, and cash and cash equivalents. Fair value through other comprehensive income ("FVTOCI") For a debt investment to be measured at FVTOCI, it needs to meet both of the following conditions and not · it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and · its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Equity instruments at FVTOCI On initial recognition, the Group may irrevocably elect to present subsequent changes in the instrument’s fair value in other comprehensive income ("OCI") provided it is not held for trading. This election is made on an investment-by-investment basis. Fair Value through profit or loss ("FVTPL") All financial assets not classified as measured at amortised cost or FVTOCI are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVTOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. The following accounting policies apply to the subsequent measurement of financial assets: Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. Financial assets at amortized cost These assets are subsequently measured at amortised cost using the effective interest method. The amortized cost is reduced by impairment losses (see below). Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. Debt investments at FVTOCI These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. Equity investments at FVTOCI These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, the estimated future cash flows of the investments have been impacted. For marketable securities classified as FVTOCI, a significant or prolonged decline in the fair value of the securities below their cost is considered to be objective evidence of impairment. Financial liabilities Non-derivative financial liabilities: The Group’s non-derivative financial liabilities consist of trade and other payables and payables to related parties. All financial liabilities that are not held for trading or designated as at FVTPL are recognized initially at fair value net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using the effective interest method. Derivative financial assets and liabilities: The Group currently has no derivative financial assets and liabilities. The Group had warrants which were derivative financial liabilities that were fully exercised during the year ended December 31, 2020, and which were designated as at FVTPL (note 7). (f) Exploration and Evaluation Expenditure Exploration and evaluation expenditures include the costs of acquiring licenses, costs associated with exploration and evaluation activity, and the acquisition date fair value of exploration and evaluation assets acquired in a business combination or an asset acquisition. Exploration and evaluation expenditures are expensed as incurred except for expenditures associated with the acquisition of exploration and evaluation assets through a business combination or an asset acquisition. Costs incurred before the Group has obtained the legal rights to explore an area are expensed. Acquisition costs, including general and administrative costs, are only capitalized to the extent that these costs can be related directly to operational activities in the relevant area of interest where it is considered likely to be recoverable by future exploitation or sale or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. Exploration and evaluation ("E&E") assets are assessed for impairment only when facts and circumstances suggest that the carrying amount of an E&E asset may exceed its recoverable amount or when the Group has sufficient information to reach a conclusion about technical feasibility and commercial viability. Industry-specific indicators for an impairment review arise typically when one of the following circumstances applies: · Substantive expenditure on further exploration and evaluation activities is neither budgeted nor planned; · title to the asset is compromised; · adverse changes in the taxation and regulatory environment; · adverse changes in variations in commodity prices and markets; and · variations in the exchange rate for the currency of operation Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified to mining property and development assets within property, plant and equipment. Recoverability of the carrying amount of any exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of the respective assets. (g) Mineral property, plant and equipment Mineral property, plant and equipment are carried at cost, less accumulated depreciation and accumulated impairment losses. The cost of mineral property, plant and equipment consists of the acquisition costs transferred from E&E assets, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use, including costs to further delineate the ore body, development and construction costs, removal of overburden to initially expose the ore body, an initial estimate of the costs of dismantling, removing the item and restoring the site on which it is located and, if applicable, borrowing costs. Mineral property acquisition and development costs are not currently depreciated as the Pebble Project is still in the development stage and no saleable minerals are being produced. The cost of an item of plant and equipment consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use, and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Depreciation is provided at rates calculated to write off the cost of plant and equipment, less their estimated residual value, using the declining balance method at various rates ranging from 20% to 30% per annum. An item of equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in profit or loss. Where an item of equipment consists of major components with different useful lives, the components are accounted for as separate items of equipment. Expenditures incurred to replace a component of an item of equipment that is accounted for separately, including major inspection and overhaul expenditures, are capitalized. Residual values and estimated useful lives are reviewed at least annually. (h) Impairment of Non-Financial Assets At the end of each reporting period the carrying amounts of the Group’s non-financial assets are reviewed to determine whether there is any indication that these assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount. This increase in the carrying amount is limited to the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. The Group has not recorded any impairment charges in the years presented. (i) Leases At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less, and leases of low-value assets. For these leases, the Group recognizes the lease payments as an expense in loss on a straight-line basis over the term of the lease. The Group recognizes a lease liability and a right-of-use asset ("ROU Asset") at the lease commencement date. The lease liability is initially measured as the present value of future lease payments discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, using the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The incremental borrowing rate is the rate which the Group would have to pay to borrow, over a similar term and with a similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment. Lease payments included in the measurement of the lease liability comprise the following: · fixed payments, including in-substance fixed payments, less any lease incentives receivable; · variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; · amounts expected to be payable by the Group under residual value guarantees; · the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and · payments of penalties for terminating the lease, if the Group expects to exercise an option to terminate the lease. The lease liability is subsequently measured by: · increasing the carrying amount to reflect interest on the lease liability; · reducing the carrying amount to reflect the lease payments made; and · remeasuring the carrying amount to reflect any reassessment or lease modifications. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. The ROU Asset is initially measured at cost, which comprises the following: · the amount of the initial measurement of the lease liability; · any lease payments made at or before the commencement date, less any lease incentives received; · any initial direct costs incurred by the Group; and · an estimate of costs to be incurred by the Group in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories. The ROU Asset is subsequently measured at cost, less any accumulated depreciation and any accumulated impairment losses, and adjusted for any remeasurement of the lease liability. It is depreciated from the commencement date to the earlier of the end of its useful life or the end of the lease term using either the straight-line or units-of-production method depending on which method more accurately reflects the expected pattern of consumption of the future economic benefits. Each lease payment is allocated between the lease liability and finance cost. The finance cost is charged to loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. On the balance sheet, the ROU Assets are presented in " Mineral property, plant and equipment Trade and other payables (j) Share Capital, Special Warrants, Warrants and Subscriptions for Shares Common shares ("shares"), special warrants, warrants and subscriptions received for shares are classified as equity. Transaction costs directly attributable to the issue of these instruments are recognized as a deduction from equity, net of any tax effects. Where units comprising of shares and warrants are issued the proceeds and any transaction costs are apportioned between the shares and warrants according to their relative fair values. Upon conversion of special warrants and warrants into shares and the issue of shares for subscriptions received, the carrying amount, net of a pro rata share of the transaction costs, is transferred to share capital. (k) Share-based Payment Transactions Equity-settled share-based Option Plan The Group operates an equity-settled share-based option plan for its employees and service providers (note 6(d)). The fair value of share purchase options granted is recognized as an employee or consultant expense with a corresponding increase in the equity-settled share-based payments reserve The fair value is measured at grant date for each tranche, which is expensed on a straight-line basis over the vesting period, with a corresponding increase in the Equity Reserve. The fair value of share purchase options granted is measured using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the share purchase options were granted and forfeiture rates as appropriate. At the end of each reporting period, the amount recognized as an expense is adjusted to reflect the actual number of share purchase options that are expected to vest. Deferred Share Unit ("DSU") Plan The Group has a DSU plan for its non-executive directors. The Group determines whether to account for DSUs as equity-settled or cash-settled based on the terms of the contractual arrangement. The fair value of DSUs granted is recognized as an employee expense with a corresponding increase in the Equity Reserve if deemed equity-settled or a liability if deemed cash-settled at grant date. The fair value is estimated by multiplying the number of DSUs with the TSX quoted market price of the Company’s common shares at grant date, and expensed over the vesting period as share-based compensation in loss until the DSUs are fully vested. If the DSUs are cash-settled, the expense and liability are adjusted each reporting period for changes in the TSX quoted market price of the Company’s common shares. Restricted Share Unit ("RSU") Plan The Group has a RSU plan for its employees, executive directors and eligible consultants of the Group. The Group determines whether to account for the RSUs as equity-settled or cash-settled based on the terms of the contractual arrangement. The fair value of RSUs is recognized as an employee expense with a corresponding increase in the Equity Reserve if deemed equity–settled or a liability if deemed cash-settled at grant date. The fair value is estimated by multiplying the number of RSUs with the TSX quoted market price of the Company’s common shares at the grant date. It is then expensed over the vesting period with the credit recognized in equity in the Equity Reserve. If cash-settled, the expense and liability are adjusted each reporting period for changes in the TSX quoted market price of the Company’s common shares. (l) Income Taxes Income tax on the profit or loss for the years presented consists of current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized in other comprehensive income or loss or directly in equity, in which case it is recognized in other comprehensive income or loss or equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regard to previous years. Deferred tax is provided using the balance sheet liability method, providing for unused tax loss carry forwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and differences relating to investments in subsidiaries, associates, and joint ventures to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the end of the reporting period applicable to the period of expected realization or settlement. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Additional income taxes that arise from the distribution of dividends are recognized at the same time as the liability to pay the related dividend. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. (m) Restoration, Rehabilitation, and Environmental Obligations An obligation to incur restoration, rehabilitation and environmental costs arises when environmental disturbance is caused by the exploration or development of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their net present value, are provided for and capitalized at the start of each project to the carrying amount of the asset, along with a corresponding liability as soon as the obligation to incur such costs arises. The timing of the actual rehabilitation expenditure is dependent on a number of factors such as the life and nature of the asset, the operating license conditions and, when applicable, the environment in which the mine operates. Discount rates using a pre-tax rate that reflects the time value of money are used to calculate the net present value. These costs are charged against profit or loss over the economic life of the related asset, through amortization using either the unit-of-production or the straight line method. The corresponding liability is progressively increased as the effect of discounting unwinds, creating an expense recognized in loss. Decommissioning costs are also adjusted for changes in estimates. Those adjustments are accounted for as a change in the corresponding capitalized cost, except where a reduction in costs is greater than the unamortized capitalized cost of the related assets, in which case the capitalized cost is reduced to nil and the remaining adjustment is recognized in profit or loss. The operations of the Group have been, and may in the future be, affected from time to time in varying degree by changes in environmental regulations, including those for site restoration costs. Both the likelihood of new regulations and their overall effect upon the Group are not predictable. The Group has no material restoration, rehabilitation and environmental obligations as the disturbance to date is not significant. The Group has posted two bonds with the Alaskan regulatory authorities as performance guarantees for any potential reclamation liability incurred as a condition for: (i) the issue of the Miscellaneous Land Use Permit at the Pebble Project (note 5(b)), and (ii) the granting of a pipeline right-of-way (note 16(c)). (n) Loss per Share The Group presents basic and diluted loss per share information for its common shares, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares and any fully prepaid special warrants outstanding during the year. Diluted loss per share does not adjust the loss attributable to common shareholders or the weighted average number of common shares outstanding when the effect is anti-dilutive. (o) Segment Reporting The Group operates in a single reportable operating segment – the acquisition, exploration and development of mineral properties. The Group’s core asset, the Pebble Project, is located in Alaska, USA. (p) Significant Accounting Estimates and Judgements The preparation of these Financial Statements requires management to make certain estimates, judgments and 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. Actual outcomes could differ from these estimates. These Financial Statements include estimates, which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the Financial Statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Sources of estimation uncertainty Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period, that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following: 1. The Group uses the Black-Scholes option pricing model to calculate an estimate of the fair value of share purchase options and warrants granted during the year. In the case of share purchase options, the fair value calculated is used to determine share-based compensation that is included in loss for the year. The fair value calculated for the warrants until they were exercised, was used to value the warrant liabilities on the statement of financial position, with gains or losses being recognized in loss. Inputs used in this model require subjective assumptions, including the expected price volatility from less than one year to five years. Changes in the subjective input assumptions can affect the fair value estimate. The weighted average assumptions applied for prior grants, as there were no grants in the current year, are disclosed in Notes 6(d). 2. Significant assumptions about the future and other sources of estimation uncertainty are made in determining the provision for any deferred income tax expense that is included in the loss for the year and the composition of any deferred income tax liabilities included in the Statement of Financial Position. Critical accounting judgements These include: 1. The Group used judgement in concluding that no impairment indicators exist in relation to the Pebble Project, notwithstanding the receipt of the ROD denial of the permit for the Pebble Project, which may be considered an indicator under IFRS 6, Exploration for and Evaluation of Mineral Resources 2. Pursuant to IAS 21, The Effects of Changes in Foreign Exchange Rates 3. The Group has employed judgement that going concern is an appropriate basis for the preparation of the Financial Statements, as the Group considered existing financial resources in determining that such financial resources are able to meet ke |
Mineral Property, Plant and Equ
Mineral Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Mineral Property, Plant and Equipment | |
Mineral Property, Plant and Equipment | 3. MINERAL PROPERTY, PLANT AND EQUIPMENT The Group’s exploration and evaluation assets are comprised of the following: Year ended December 31, 2021 Mineral Property interest 1 Plant and equipment 2 Total Cost Beginning Balance $ 112,541 $ 3,018 $ 115,559 Addition – 277 277 Disposal 2 – (29 ) (29 ) Modification of lease terms – (237 ) (237 ) Ending balance 112,541 3,029 115,570 Accumulated depreciation Beginning Balance – (2,148 ) (2,148 ) Depreciation charge for the year 3 – (329 ) (329 ) Derecognition on disposal 2 – 23 23 Ending balance – (2,454 ) (2,454 ) Foreign currency translation difference Beginning Balance 22,083 152 22,235 Movement for period (1,004 ) (8 ) (1,012 ) Ending balance 21,079 144 21,223 Net carrying value – December 31, 2021 $ 133,620 $ 719 $ 134,339 Year ended December 31, 2020 Mineral Property interest 1 Plant and equipment 2 Total Cost Beginning balance and Ending balance $ 112,541 $ 3,018 $ 115,559 Accumulated depreciation Beginning balance – (1,615 ) (1,615 ) Depreciation charge for the year 3 – (533 ) (533 ) Ending balance – (2,148 ) (2,148 ) Foreign currency translation difference Beginning balance 24,766 157 24,923 Movement for the year (2,683 ) (5 ) (2,688 ) Ending balance 22,083 152 22,235 Net carrying value –December 31, 2020 $ 134,624 $ 1,022 $ 135,646 Notes to tables: 1. Comprises the Pebble Project, a contiguous block of 1,840 mineral claims covering approximately 274 square miles located in southwest Alaska, 17 miles (30 kilometers) from the villages of Iliamna and Newhalen, and approximately 200 miles (320 kilometers) southwest of the city of Anchorage. 2. Includes Right-of-use assets ("ROU Assets"), which relate to the use of office space, a copier, hangers, yard storage and one vehicle, which was disposed of in February 2021. The following comprises ROU Assets: Year ended December 31, 2021 Land and Buildings Equipment Total Cost Beginning balance $ 1,591 $ 53 $ 1,644 Addition 277 – 277 Disposal – (21 ) (21 ) Modification of lease terms (237 ) – (237 ) Ending balance 1,631 32 1,663 Accumulated depreciation Beginning balance (723 ) (26 ) (749 ) Depreciation charge for the year 3 (224 ) (11 ) (235 ) Derecognition on disposal – 17 17 Ending balance (947 ) (20 ) (967 ) Foreign currency translation difference Beginning balance (69 ) (1 ) (70 ) Movement for year (7 ) – (7 ) Ending balance (76 ) (1 ) (77 ) Net carrying value – December 31, 2021 $ 608 $ 11 $ 619 Year ended December 31, 2020 Land and Buildings Equipment Total Cost Beginning and Ending balance $ 1,591 $ 53 $ 1,644 Accumulated depreciation Beginning balance (411 ) (9 ) (420 ) Depreciation (312 ) (17 ) (329 ) Ending balance (723 ) (26 ) (749 ) Foreign currency translation difference Beginning balance (63 ) (1 ) (64 ) Movement for year (6 ) – (6 ) Ending Balance (69 ) (1 ) (70 ) Net carrying value – December 31, 2020 $ 799 $ 26 $ 825 3. For the year ended December 31, 2021, ROU Asset depreciation of $192 (2020 – $235) is included in general and administrative expenses for the year ended December 31, 2021. The remainder is included in exploration and evaluation expenses. |
Amounts Receivable and Prepaid
Amounts Receivable and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Amounts Receivable and Prepaid Expenses | |
Amounts Receivable and Prepaid Expenses | 4. AMOUNTS RECEIVABLE AND PREPAID EXPENSES December 31 December 31 2021 2020 Sales tax receivable $ 79 $ 67 Deferred At-the-Market Offering costs 1 352 – Interest, refundable deposits and other receivables 85 587 Prepaid expenses 2 1,351 823 Total $ 1,867 $ 1,477 Notes 1. These costs are allocated to equity based on the dollar amount issued as a percentage of the total amount available under the offering (note 6(b)). 2. Includes prepaid insurance, which is amortized over the insurance term. |
Cash and Cash Equivalents and R
Cash and Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents and Restricted Cash | |
Cash and Cash Equivalents and Restricted Cash | 5. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (a) Cash and cash equivalents The Group’s cash and cash equivalents at December 31, 2021 and December 31, 2020, consisted of cash on hand and was invested in business and savings accounts. (b) Restricted cash The Group has cash deposited with a United States financial institution that has been pledged as collateral to the surety provider for a US$2,000 surety bond that was placed with the Alaskan regulatory authorities for a performance guarantee related to any potential reclamation liability as a condition of the Miscellaneous Land Use Permit granted to the Pebble Partnership for its ongoing activities on the Pebble Project. The cash deposit will be released once any reclamation work required has been performed and assessed by the Alaskan regulatory authorities. The cash is invested in a money market fund. For the year ended December 31, 2021, nominal income was recognized (2020 – $2 respectively), which was re-invested. |
Capital and Reserves
Capital and Reserves | 12 Months Ended |
Dec. 31, 2021 | |
Capital and Reserves | |
Capital and Reserves | 6. CAPITAL AND RESERVES (a) Authorized Share Capital At December 31, 2021 and 2020, authorized share capital consisted of an unlimited number of common shares ("shares") with no par value. At December 31, 2021, 529,779,388 (2020 – 509,046,631) shares were issued and fully paid. (b) Financings June 2021 At-The-Market Offering In June 2021, the Group entered into an At-the-Market Offering Agreement (the "ATM Agreement") with H.C. Wainwright & Co. (the "Agent") whereby the Group is able to sell, at its discretion and from time-to-time during the term of the ATM Agreement, through the Agent as sales agent, shares of the Company having an aggregate gross sales price of up to US$14.5 million (the "ATM Facility"). Sales of the shares will be made directly on the NYSE American or on any other existing trading market in the US. No offers or sales of shares will be made under the ATM Facility in Canada on the TSX or other trading markets in Canada. The Group will determine, at its sole discretion, the date, price and number of shares to be sold under the ATM Facility. The shares will be distributed at market prices or prices related to prevailing market prices from time to time. The Group is not required to sell any shares at any time during the term of the ATM Facility, and there are no fees for having established the ATM Facility. The ATM Agreement does not restrict the Group from conducting other financings. As at December 31 2021, the Group has sold 1,212,805 shares under the ATM Facility at an average share price of US$0.567 for gross proceeds of US$688 ($872). The Group paid Agent fees of US$17 ($22). After transaction costs of $48, net proceeds to the Group were $824. Subsequent to the reporting date to the date of issuance of these Financial Statements, no further sales under the ATM Facility have been completed. August and July 2020 Private Placement The Group completed a non-brokered private placement in two tranches of 5,807,534 shares and 100,000 shares on July 30, 2020, and August 6, 2020, respectively, at a price of US$1.46 per share for gross proceeds of US$8,625 ($11,679). No commission or finder’s fee were payable. After transaction costs of $106, net proceeds to the Group were $11,573. Bought Deal In July 2020, the Group completed an underwritten public offering of 24,150,000 shares at US$1.46 per share for gross proceeds of US$35,259 ($47,638). The Group paid the underwriters a 5% cash commission. After transaction costs of $3,038, net proceeds to the Group were $44,600. May 2020 Bought Deal In May 2020, the Group completed an underwritten public offering of 14,375,000 shares at $0.70 per share for gross proceeds of approximately $10,063. The Group paid the underwriters a 5% cash commission. After transaction costs of $943, net proceeds to the Group were $9,120. Private Placement In May 2020, the Group also completed a non-brokered private placement of 10,357,143 common shares at $0.70 per share for gross proceeds of $7,250. No commission or finder’s fee were payable. After transaction costs of $16, net proceeds to the Group were $7,234. January 2020 Private Placements In January 2020, the Group completed private placements 13,688,823 shares for gross proceeds of approximately $6,708 (US$5,065). The Group received $699 of the proceeds in December 2019 and $6,009 of the proceeds in January 2020. After transaction costs of $116 (of which $6 was incurred in 2019), net proceeds to the Group were $6,592 (of which $693 was recognized in December 2019). (c) Share Purchase Warrants and Options not Issued under the Group’s Incentive Plan The following reconciles outstanding warrants and non-employee options (options that were not issued under the Group’s incentive plan (see below)), each exercisable to acquire one share, for the year ended December 31, 2021 and 2020 respectively: Continuity Cannon Point options 1 Mission Gold warrants 1 Other warrants 2 Broker warrants 3 Total Balance January 1, 2020 223,250 3,764,626 27,541,065 244,000 31,772,941 Exercised (11,750 ) (3,550,835 ) (9,827,800 ) (244,000 ) (13,634,385 ) Expired – (213,791 ) – – (213,791 ) Balance December 31, 2020 211,500 – 17,713,265 – 17,924,765 Exercised (117,500 ) – (14,318,452 ) – (14,435,952 ) Expired – – (3,394,813 ) – (3,394,813 ) Balance December 31, 2021 94,000 – – – 94,000 Weighted averages per option/warrant Cannon Point options Other warrants Total 2021 Exercise price $ 0.36 – $ 0.36 Remaining life in years 1.74 – 1.74 2020 Exercise price $ 0.37 $ 0.65 $ 0.65 Remaining life in years 1.46 0.45 0.46 Notes to tables: 1. The Group issued options and warrants in exchange for those which were outstanding in Cannon Point Resources Ltd. ("Cannon Point") and Mission Gold Ltd. ("Mission Gold") on the acquisition of these companies in October 2015 and December 2015, respectively. The Mission Gold warrants had an exercise price of $0.55 per warrant. 2. Warrants were issued pursuant to the June 2016 prospectus financing, July 2016 private placement and the 2019 non-revolving term loan credit facility agreement (the "Credit Facility") (note 8). 3. The Broker Warrants were issued to the underwriters pursuant to the June 2019 prospectus financing and had an exercise price of US$0.41 per warrant. (d) Share Purchase Option Compensation Plan The Group has a share purchase option plan approved by the Group’s shareholders that allows the Board of Directors to grant share purchase options, subject to regulatory terms and approval, to its officers, directors, employees, and service providers. The share purchase option plan (the "2021 Rolling Option Plan") is based on the maximum number of eligible shares (including any issuances from the Group’s RSU and DSU plans ) equaling a rolling percentage of up to 8% of the Company's outstanding Shares, calculated from time to time. Pursuant to the 2021 Rolling Option Plan, if outstanding share purchase options ("options") are exercised and the number of issued and outstanding shares of the Company increases, then the options available to grant under the plan increase proportionately (assuming there are no issuances under the RSU and DSU plans). The exercise price of each option is set by the Board of Directors at the time of grant but cannot be less than the market price, being the 5-day volume weighted average trading price calculated the day before the grant. Options can have a maximum term of five years and typically terminate 90 days following the termination of the optionee’s employment or engagement. In the case of death or retirement, any outstanding vested options will expire the earlier of the expiry date or one year from date of death or retirement. The vesting period for options is at the discretion of the Board of Directors at the time the options are granted. The following reconciles the Group’s share purchase options ("options") issued and outstanding pursuant to the Group’s incentive plan for the year ended December 31, 2021 and 2020: Continuity of options Number of options Weighted average exercise price ($/option) Balance January 1, 2020 25,752,266 0.96 Cancelled (22,000 ) 1.16 Exercised (3,991,066 ) 0.99 Expired (24,200 ) 1.75 Forfeited (16,500 ) 1.36 Granted 1 6,783,000 2.01 Balance December 31, 2020 28,481,500 1.20 Exercised (5,084,000 ) 0.51 Expired (2,572,000 ) 0.61 Balance December 31, 2021 20,825,500 1.45 Note 1. The weighted average fair value for options granted was estimated at $1.58 per option, which was based on the Black-Scholes option pricing model using the following weighted average assumptions: risk free rate of 0.35%, expected volatility of 94.7% (which is based on the historical and implied volatility of the Company’s share price on the TSX), expected life of 4.98 years, share price of $2.18 and dividend yield of nil. For the year ended December 31, 2021, the Group recognized share-based compensation ("SBC") of $2,858 (2020 – $9,342) for options. The following table summarizes information on options outstanding as at the reported dates: December 31, 2021 December 31, 2020 Exercise prices ($) Number of options outstanding Number of options exercisable Weighted Average Remaining contractual life (years) Number of options outstanding Number of options exercisable Weighted Average Remaining contractual life (years) 0.48 – – – 200,000 200,000 0.20 0.49 – – – 4,455,000 4,455,000 0.53 0.501 – – – 1,520,000 1,520,000 0.12 0.76 3,300,000 3,300,000 1.61 4,761,000 4,761,000 2.08 0.99 6,368,500 6,368,500 2.74 6,388,500 6,388,500 3.74 1.75 4,386,000 4,386,000 0.57 4,386,000 4,386,000 1.57 2.01 6,696,000 6,696,000 3.55 6,696,000 3,348,000 4.55 2.34 75,000 75,000 1.58 75,000 75,000 2.58 Total 20,825,500 20,825,500 28,481,500 25,133,500 Note: 1. These options were set to expire on October 10, 2020, but were extended pursuant to certain provisions of the options plan. The weighted average contractual life for options outstanding, which were all exercisable, was 2.36 (2020 – for options outstanding, 2.59, and 2.33 for options exercisable) years per option. The weighted average exercise price for exercisable options as at December 31, 2021 was $1.45 (2020 – $1.10) per option. Details of options exercised were as follows: Year ended December 31, 2021 Month Number of options Weighted average exercise price ($/option) Weighted average market share price on exercise ($/option) January 2021 405,000 0.50 0.82 February 2021 2,494,000 0.53 0.89 March 2021 150,000 0.48 0.89 June 2021 590,000 0.49 0.64 July 2021 1,445,000 0.49 0.58 Total 5,084,000 0.51 0.76 Year ended December 31, 2020 Month Number of options Weighted average exercise price ($/option) Weighted average market share price on exercise ($/option) May 2020 388,000 0.71 1.33 June 2020 1,162,900 0.84 1.82 July 2020 908,500 1.46 2.34 August 2020 1,165,000 0.97 2.00 September 2020 210,000 0.69 1.48 October 2020 156,666 0.50 1.38 Total 3,991,066 0.99 1.90 (e) Deferred Share Units ("DSUs") The Group has a DSU plan approved by the Group’s shareholders, which allows the Board, at its discretion, to award DSUs to non-executive directors for services rendered to the Group and also provides that non-executive directors may elect to receive up to 100% of their annual compensation in DSUs. The aggregate number of DSUs outstanding pursuant to the DSU plan may not exceed 1% of the issued and outstanding shares from time to time provided the total does not result in the total shares issuable under all the Group’s share-based compensation plans (i.e. including the Group’s option and restricted share unit plans) exceeding 8% of the total number of issued outstanding shares. DSUs are payable when the non-executive director ceases to be a director including in the event of death. DSUs may be settled in shares issued from treasury, by the delivery to the former director of shares purchased by the Group in the open market, payment in cash, or any combination thereof, at the discretion of the Group. The following reconciles DSUs outstanding for the year ended December 31, 2021 and 2020: Continuity of DSUs Number of DSUs Weighted average fair value ($/DSU) Balance January 1, 2020 and December 31, 2020 458,129 0.69 Granted 1 19,582 0.60 Balance December 31, 2021 477,711 0.69 Note 1. On grant date, the Group recognized the aggregate market value of $12, as share-based compensation in the statement of loss with a corresponding increase in the equity-settled share payment reserve in equity. (f) Foreign Currency Translation Reserve Continuity Balance January 1, 2020 $ 32,365 Loss on translation of foreign subsidiaries (2,704 ) Balance December 31, 2020 29,661 Loss on translation of foreign subsidiaries (903 ) Balance December 31, 2021 $ 28,758 The foreign currency translation reserve represents accumulated exchange differences arising on the translation, into the Group’s presentation currency (the Canadian dollar), of the results of operations and net assets of the Group’s subsidiaries with a US dollar functional currency. |
Warrant Liabilities
Warrant Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Warrant Liabilities | |
Warrant Liabilities | 7. WARRANT LIABILITIES The Group issued warrants to the underwriters pursuant to the June 2019 prospectus financing with a US dollar exercise price, and which were treated as cash-settled warrant liabilities. Accordingly, they were recognized at fair value on date of issue as a financing cost with subsequent changes in fair value being recognized in loss. For the year ended December 31, 2020, the Group recognized a loss of $204 on the revaluation of the warrant liabilities. The Group transferred $247 to the equity-settled SBC reserve on exercise of the warrants, which were fully exercised by December 31, 2020. |
Loans Payable
Loans Payable | 12 Months Ended |
Dec. 31, 2021 | |
Loans Payable | |
Loans Payable | 8. LOANS PAYABLE In November 2019 and January 2020, the Group received $2,317 and $183 in loans respectively, pursuant to an unsecured non-revolving term loan credit facility agreement (the "Credit Facility") with a syndicate of lenders (the "Lenders"), two of whom are related parties. The loans earned interest at 10% per annum, payable on repayment of the loans. The loans including accrued interest were repaid to the Lenders in January and February 2020. For the year ended December 31, 2021, as the loans were repaid in 2020, the loans balance was $nil and finance expenses included $nil interest (2020 – As consideration for entering into the Credit Facility, the Group issued to the Lenders, on a pro rata basis, 466,666 share purchase warrants, of which 153,333 warrants were issued to the two related parties, each warrant exercisable for one share at the exercise price of $0.75 per share until December 2, 2021. During the year ended December 31, 2021, 66,667 (2020 – 200,000) warrants were exercised. The balance of 199,999 warrants expired unexercised (note6(c)). |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Balances and Transactions | |
Related Party Balances and Transactions | 9. RELATED PARTY BALANCES AND TRANSACTIONS The components of transactions to related parties is as follows: December 31 December 31 Payables to related parties 2021 2020 Key management personnel ("KMP")(a) $ 35 $ 34 Hunter Dickinson Services Inc. ("HDSI")(b) 341 814 Total payables to related parties $ 376 $ 848 Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation. Details between the Group and other related parties are disclosed below. (a) Transactions and Balances with Key Management Personnel The aggregate value of transactions with KMP, being the Group’s directors, including Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO"), Company Secretary, Executive Vice President ("EVP"), Environment and Sustainability, Vice President ("VP"), Corporate Communications, VP, Engineering and VP, Public Affairs (until August 31, 2021), and Pebble Partnership ("PLP") senior management including the Interim PLP CEO and Chair of Pebble Mines Corp ("PMC Chair"), Executive VP ("EVP"), Public Affairs, Senior VP ("SVP"), Corporate Affairs, SVP Engineering (until February 28, 2021), VP, Permitting, and Chief of Staff (until February 19, 2021), was as follows for the year ended December 31, 2021 and 2020: Transaction 2021 2020 Compensation Amounts paid and payable to HDSI for services of KMP employed by HDSI 1 $ 2,882 $ 2,408 Amounts paid and payable to KMP 2 2,624 4,525 Bonuses paid to KMP 3 – 1,216 Interest payable on loans from KMP 4 – 5 5,506 8,154 Share-based compensation 5 1,854 6,207 Total compensation $ 7,360 $ 14,361 Notes to table: 1. The Group’s CEO, CFO, Board Chair and senior management, other than disclosed in note 2 below, are employed by the Group through HDSI (refer (b)). 2. Represents short-term employee benefits, including director’s fees paid to the Group’s independent directors, and salaries paid and payable to the Interim PLP CEO (2020 – included the former PLP CEO) and PMC Chair, PLP EVP, SVPs, VP and Chief of Staff. The SVP Engineering was employed by the Group through a wholly-owned US subsidiary of HDSI ("HDUS") until the end of February 2021. The Group reimbursed HDUS for costs incurred. 3. In 2020, incentive bonuses were paid to the former PLP CEO, SVP, Corporate Affairs and Chief of Staff. 4. In January 2020, the Group repaid loans totalling $1,150 advanced by the Group’s Board Chair and CEO pursuant to the Credit Facility (note 8). $9 in interest was paid on the loans of which $5 was accrued in January 2020. The following reconciles loans repaid: Total loans including interest payable at January 1, 2020 $ 971 Additional loans provided 183 Interest accrued 5 Loans repaid (1,159 ) Balance December 31, 2020 $ – 5. Consists of the expense recognized for share purchase options issued and/or vesting and the grant of DSUs (note 6(e)) during the respective periods. Options Exercised During the year ended December 31, 2021, KMP exercised 3,717,000 (2020 – 1,440,000) options at a weighted average exercise price of $0.49 (2020 – $0.56) per option, and a weighted average market price on exercise of $0.73 (2020 – $1.83) per option for proceeds to the Group of $1,824 (2020 – $807). (b) Transactions and Balances with other Related Parties HDSI is a private company that provides geological, engineering, environmental, corporate development, financial, administrative and management services to the Group and its subsidiaries at annually set rates pursuant to a management services agreement. The annually set rates also include a component of overhead costs such as office rent, information technology services and general administrative support services. HDSI also incurs third party costs on behalf of the Group, which are reimbursed by the Group at cost. Several directors and other key management personnel of HDSI, who are close business associates, are also key management personnel of the Group. For the year ended December 31, 2021 and 2020, transactions with HDSI were as follows: Transactions 2021 2020 Services rendered by HDSI Technical 1 Engineering $ 735 $ 904 Environmental 434 245 Socioeconomic 285 486 Other technical services 154 307 1,608 1,942 General and administrative Management, consulting, corporate communications, secretarial, financial and administration 3,029 3,011 Shareholder communication 721 614 3,750 3,625 Total for services rendered 5,358 5,567 Reimbursement of third party expenses Conferences and travel 49 119 Insurance 71 53 Office supplies and information technology 2 502 418 Total reimbursed 622 590 Total $ 5,980 $ 6,157 Notes to table 1. Included in exploration and evaluation expenses. 2. Includes payments made for the use of offices and shared space of $106 (2020 - $7) for the year ended December 31, 2021. In April 2021, the Company signed an office use agreement effective May 1, 2021, for a five-year term ending April 29, 2026. As of December 31, 2021, the remaining undiscounted commitment was $431 (note 16(e)). Pursuant to an addendum to the management services agreement between HDSI and the Company, following a change of control, the Company is subject to termination payments if the management services agreement is terminated. The Company will be required to pay HDSI $2,800 and an aggregate amount equal to six months of annual salaries payable to certain individual service providers under the management services agreement and their respective employment agreements with HDSI. |
Trade and Other Payables
Trade and Other Payables | 12 Months Ended |
Dec. 31, 2021 | |
Trade and Other Payables | |
Trade and Other Payables | 10. TRADE AND OTHER PAYABLES December 31 December 31 Current liabilities 2021 2020 Falling due within the year Trade 1 $ 1,922 $ 6,304 Lease liabilities 2 126 259 Total $ 2,048 $ 6,563 Non-current liabilities Trade 1 $ 804 $ – Lease liabilities 2 561 657 Total $ 1,365 $ 657 Notes to table: 1. At December 31, 2021, Non-current trade liabilities includes fees due to legal counsel of US$635 payable on completion of a partnering transaction. At December 31, 2020, those fees were included in current liabilities. 2. Lease liabilities relate to lease of offices, a copier and yard storage, which have remaining lease terms of 12 to 101 months and interest rates of 9.5% – 12% over the term of the leases. The following summarizes lease liabilities for the year ended December 31, 2021 and 2020: Lease liabilities 2021 2020 Beginning balance $ 916 $ 1,220 Interest expense 67 108 Effect of modification to lease term (284 ) – Lease payments (267 ) (402 ) Lease recognition 268 – Lease settlement (5 ) – Foreign currency translation difference (8 ) (10 ) Ending balance 687 916 Current portion 126 259 Non-current portion 561 657 Total $ 687 $ 916 The following table provides the schedule of undiscounted lease liabilities as at December 31, 2021: Total Less than one year $ 190 One to five years 550 Later than 5 years 186 Total undiscounted lease liabilities $ 926 The Group had short-term lease commitments of less than a year relating to a property lease totaling $90 as of January 1, 2021. During the year ended December 31, 2021, the Group incurred short-term lease commitments of $147 (2020 – $257), and expensed $190 (2020 – $256). |
EXPLORATION AND EVALUATION AND
EXPLORATION AND EVALUATION AND GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
EXPLORATION AND EVALUATION AND GENERAL AND ADMINISTRATIVE EXPENSES | |
EXPLORATION AND EVALUATION AND GENERAL AND ADMINISTRATIVE EXPENSES | 11. EXPLORATION AND EVALUATION AND GENERAL AND ADMINISTRATIVE EXPENSES (a) Exploration and Evaluation Expenses ("E&E") For the year ended December 31, 2021 and 2020, E&E consisted of the following: E&E 2021 2020 Engineering $ 3,860 $ 9,171 Environmental 2,237 11,782 Property fees 1,150 2,104 Site activities 2,089 3,438 Socio-economic 2,403 10,451 Transportation 523 1,919 Other activities and travel 173 354 Total $ 12,435 $ 39,219 (b) General and Administrative Expenses ("G&A") For the year ended December 31, 2021 and 2020, G&A consisted of the following: G&A 2021 2020 Conference and travel $ 131 $ 179 Consulting 1,902 2,346 Depreciation of right-of-use assets 192 235 Insurance 1,502 848 Office costs, including information technology 815 1,132 Management and administration 3,891 5,419 Shareholder communication 1,309 1,039 Trust and filing 249 347 Total $ 9,991 $ 11,545 |
Employment Costs
Employment Costs | 12 Months Ended |
Dec. 31, 2021 | |
Employment Costs | |
Employment Costs | 12. EMPLOYMENT COSTS During the year ended December 31, 2021, the Group recorded the following: 2021 2020 Exploration and evaluation Salaries and benefits $ 2,907 $ 5,086 Amounts paid for services by HDSI personnel (note 9(b)) 1,508 1,327 4,415 6,413 General and administrative Salaries and benefits 1,418 3,038 Amounts paid for services by HDSI personnel (note 9(b)) 2,764 2,817 4,182 5,855 Share-based payments 2,858 9,342 $ 11,455 $ 21,610 |
Basic and Diluted Loss Per Shar
Basic and Diluted Loss Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Basic and Diluted Loss Per Share | |
Basic and Diluted Loss Per Share | 13. BASIC AND DILUTED LOSS PER SHARE The calculation of basic and diluted loss per share for the year ended December 31, 2021 and 2020 was based on the following: 2021 2020 Loss attributable to shareholders $ 31,542 $ 63,872 Weighted average number of shares outstanding (000s) 521,459 473,668 For the year ended December 31, 2021 and 2020, basic and diluted loss per share does not include the effect of employee share purchase options outstanding (2021 –20,825,500, 2020 – 28,481,500), non-employee share purchase options and warrants (2021 – 94,000, 2020 – 17,924,765) and DSUs (2021 – 477,711, 2020 – 458,129), as they were anti-dilutive. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax | |
Income Tax | 14. INCOME TAX Year ended December 31 Reconciliation of effective tax rate 2021 2020 Net loss $ (31,542 ) $ (63,872 ) Total income tax (recovery) expense – – Loss excluding income tax (31,542 ) (63,872 ) Income tax recovery using the Company's domestic tax rate (8,516 ) (17,245 ) Non-deductible expenses and other 764 1,393 Change in tax rates – – Deferred income tax assets not recognized 7,752 15,852 $ – $ – The Company's domestic tax rate for the year was 27% (2020 – 27%). December 31 December 31 Deferred income tax assets (liabilities) 2021 2020 Tax losses $ 2,451 $ 2,421 Net deferred income tax assets 2,451 2,421 Resource property/investment in Pebble Partnership (2,451 ) (2,421 ) Equipment – – Net deferred income tax liability $ – $ – The Group had the following temporary differences at December 31, 2021, in respect of which no deferred tax asset has been recognized: Resource Expiry Tax losses pools Other Within one year $ – $ – $ – One to five years – – 4,955 After five years 297,507 – – No expiry date 33,742 92,812 190 Total $ 331,249 $ 92,812 $ 5,145 The Group has taxable temporary differences in relation to investments in foreign subsidiaries or branches of $8.6 million (2020 – $8.5 million) which has not been recognized because the Group controls the reversal of liabilities and it is expected it will not reverse in the foreseeable future. |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Dec. 31, 2021 | |
Financial Risk Management | |
Financial Risk Management | 15. FINANCIAL RISK MANAGEMENT The Group is exposed in varying degrees to a variety of financial instrument related risks. The Board approves and monitors the risk management processes, inclusive of documented investment policies, counterparty limits, and controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows: (a) Credit Risk Credit risk is the risk of potential loss to the Group if a counterparty to a financial instrument fails to meet its contractual obligations. The Group’s credit risk is primarily attributable to its liquid financial assets, including cash and cash equivalents, restricted cash and amounts receivable. The Group limits the exposure to credit risk by only investing its cash and cash equivalents and restricted cash with high-credit quality financial institutions in business and saving accounts, guaranteed investment certificates, in government treasury bills, low risk corporate bonds and money market funds which are available on demand by the Group when required. Amounts receivable in the table below exclude receivable balances with government agencies (note 4). The Group’s maximum exposure was as follows: December 31 December 31 Exposure 2021 2020 Amounts receivable $ 85 $ 587 Restricted cash 785 791 Cash and cash equivalents 22,291 42,460 Total exposure $ 23,161 $ 43,838 (b) Liquidity Risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations when they become due. The Group ensures, as far as reasonably possible, it will have sufficient capital in order to meet short to medium term business requirements, after taking into account cash flows from operations and the Group’s holdings of cash and cash equivalents and restricted cash, where applicable. However, the Group has noted material uncertainty that raises substantial doubt about the Group’s ability to continue as a going concern notwithstanding the Group having positive working capital (note 1) as demands may exceed existing resources, and that it has been successful in the past in raising funds when needed. The Group’s cash and cash equivalents at the reporting date were invested in business and savings accounts (note 5(a)). The Group’s financial liabilities are comprised of current trade and other payables (note 10) and payables to related parties (note 9), which are due for payment within 12 months from the reporting date, and non-current trade payables, which are due for payment more than 12 months from the reporting date. The carrying amounts of the Group’s financial liabilities represent the Group’s contractual obligations. (c) Foreign Exchange Risk The Company is subject to both currency transaction risk and currency translation risk: the Pebble Partnership, Pebble Services Inc. and U5 Resources Inc. have the US dollar as functional currency, and certain of the Company’s corporate expenses are incurred in US dollars. The operating results and financial position of the Group are reported in Canadian dollars in these Financial Statements. As a result, the fluctuation of the US dollar in relation to the Canadian dollar will have an impact upon the losses incurred by the Group as well as the value of the Group’s assets and the amount of shareholders’ equity. The Group has not entered into any agreements or purchased any instruments to hedge possible currency risks. The exposure of the Group's US dollar-denominated financial assets and liabilities to foreign exchange risk was as follows: December 31 December 31 2021 2020 Financial assets Amounts receivable $ 168 $ 649 Cash and cash equivalents and restricted cash 5,433 23,624 5,601 24,273 Financial liabilities Non-current trade payables (1,365 ) (657 ) Current trade and other payables (1,670 ) (6,170 ) Payables to related parties (190 ) (650 ) (3,225 ) (7,477 ) Net financial assets exposed to foreign currency risk $ 2,376 $ 16,796 Based on the above net exposures and assuming that all other variables remain constant, a 10% change in the value of the Canadian dollar relative to the US dollar would result in a gain or loss of $238 (2020 – $1,680) in the reported period. This sensitivity analysis includes only outstanding foreign currency denominated monetary items. (d) Interest Rate Risk The Group is subject to interest rate cash flow risk with respect to its investments in cash and cash equivalents. The Group’s policy is to invest cash at fixed rates of interest and cash reserves are to be maintained in cash and cash equivalents or short-term low risk investments in order to maintain liquidity, while achieving a satisfactory return for shareholders. Fluctuations in interest rates when cash and cash equivalents mature impact interest income earned. Assuming that all other variables remain constant, a 100 basis points change representing a 1% increase or decrease in interest rates would have resulted in a decrease or increase in loss of $324 (2020 – $282). (e) Capital Management The Group's policy is to maintain a strong capital base to maintain investor and creditor confidence and to sustain future development of the business. The capital structure of the Group consists of equity, comprising share capital and reserves, net of accumulated deficit. There were no changes in the Group's approach to capital management during the period. The Group is not subject to any externally imposed capital requirements. (f) Fair Value The fair value of the Group’s financial assets and liabilities approximates the carrying amount. Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and • Level 3 – Inputs that are not based on observable market data. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. Fair value measurements, which are determined by using valuation techniques, are classified in their entirety as either Level 2 or Level 3 based on the lowest level input that is significant to the measurement. The fair value measurement of the warrant liabilities until their exercise in 2020 (note 7) was categorized within Level 2 of the hierarchy as it was exposed to market risk as they employed the quoted market price of shares and foreign exchange rates. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Capital and Reserves | |
Commitments and Contingencies | 16. COMMITMENTS AND CONTINGENCIES (a) Legal Proceedings Class Action Litigation Relating to the USACE’s Record of Decision On December 4 and December 17, 2020, separate putative shareholder class action lawsuits were filed against the Company and certain of its current and former officers and directors in the U.S. District Court for the Eastern District of New York (Brooklyn) regarding the drop in the price of the Company’s stock following the ROD by the USACE regarding the Pebble Project. These cases are captioned Darish v. Northern Dynasty Minerals Ltd. et al Hymowitz v. Northern Dynasty Minerals Ltd. et al. On December 3, 2020, a putative shareholder class action lawsuit was filed against the Company, certain of its current and former officers and directors, and one of its underwriters in the Supreme Court of British Columbia regarding the decrease in the price of the Company’s stock following the USACE’s November 25, 2020, decision regarding the Pebble Project. The case is captioned Haddad v. Northern Dynasty Minerals Ltd. et al., On February 17, 2021, a putative shareholder class action lawsuit was filed against the Company, certain of its current and former officers and directors, and certain of its underwriters in the Supreme Court of British Columbia regarding the decrease in the price of the Company’s stock following (i) the USACE’s August 24, 2020 announcement that the Pebble Project could not be permitted as proposed, and (ii) the USACE’s November 25, 2020 decision regarding the Pebble Project. The case is captioned Woo v. Northern Dynasty Minerals Ltd. et al. On March 5, 2021, a putative shareholder class action lawsuit was filed against the Company, certain of its current and former officers and directors, and certain of its underwriters in the Ontario Superior Court of Justice regarding the decrease in the price of the Company’s stock following the USACE’s November 25, 2020 decision regarding the Pebble Project. The case is captioned Pirzada v. Northern Dynasty Minerals Ltd. et al. Given the nature of the claims, it is not currently possible for the Company to predict the outcome nor practical to determine their possible financial effect. Grand Jury Subpoena On February 5, Indemnification Obligations The Company is subject to certain indemnification obligations to both present and former officers and directors, including the Pebble Partnership’s former CEO, in respect to the legal proceedings described above. These indemnification obligations will be subject to limitations prescribed by law and the articles of the Company, and may also be subject to contractual limitations. (b) Short-term Lease Commitments As of December 31, 2021, the Group has a short-term lease commitment of $50 with a fixed monthly payment over the remaining term. (c) Pipeline Right-of-Way Bond Commitment The Group has a bond of US$300 with the Alaskan regulatory authorities for a performance guarantee related to any potential reclamation liability as a condition for a pipeline right-of-way to a subsidiary of the Pebble Partnership, the Pebble Pipeline Corporation. The Group is liable to the surety provider for any funds drawn by the Alaskan regulatory authorities. (d) Pebble Performance Dividend Commitment The Group has a future commitment beginning at the outset of project construction at the Pebble Project to distribute cash generated from a 3% net profits royalty interest in the Pebble Project to adult residents of Bristol Bay villages that have subscribed as participants, with a guaranteed minimum aggregate annual payment of US$3,000 each year the Pebble mine operates. (e) Office Use Commitment The Company has an office use agreement with HDSI (note 9(b)) ending April 29, 2026, for a total remaining undiscounted commitment of $431. This commitment is a flow through cost at market rates. The following table summarizes the commitment schedule: Total Less than one year $ 95 One to five years 336 Total $ 431 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Statement of Compliance | These Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") |
Basis of Preparation | These Financial Statements have been prepared on a historical cost basis using the accrual basis of accounting, except for cash flow information and for financial instruments classified as fair value through other comprehensive income, which are stated at their fair value (refer note 2(e)). The accounting policies set out below have been applied consistently to all periods presented in these Financial Statements unless otherwise stated. |
Basis of Consolidation | These Financial Statements incorporate the financial statements of the Company, the Company’s subsidiaries, and entities controlled by the Company and its subsidiaries listed below: Name of Subsidiary Place of Incorporation Principal Activity Percent owned 3537137 Canada Inc. 1 Canada Holding Company. Wholly-owned subsidiary of the Company. 100% Pebble Services Inc. Nevada, USA Management and services company. Wholly-owned subsidiary of the Company. 100% Northern Dynasty Partnership Alaska, USA Holds 99.9% interest in the Pebble Partnership and 100% of Pebble Mines. 100% (indirect) Pebble Limited Partnership ("Pebble Partnership") Alaska, USA Limited Partnership. Ownership and Exploration of the Pebble Project. 100% (indirect) Pebble Mines Corp. ("Pebble Mines") Delaware, USA General Partner. Holds 0.1% interest in the Pebble Partnership. 100% (indirect) Pebble West Claims Corporation 2 Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) Pebble East Claims Corporation 2 Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) Pebble Pipeline Corporation Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) Pebble Performance Dividend LLC Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) U5 Resources Inc. Nevada, USA Holding Company. Wholly-owned subsidiary of the Company. 100% Cannon Point Resources Ltd. British Columbia, Canada Not active. Wholly-owned subsidiary of the Company. 100% MGL Subco Ltd. ("MGL") British Columbia, Canada Not active. Wholly-owned subsidiary of the Company. 100% Delta Minerals Inc. ("Delta") British Columbia, Canada Not active. Wholly-owned subsidiary of MGL. 100% (indirect) Imperial Gold Corporation ("Imperial Gold") British Columbia, Canada Not active. Wholly-owned subsidiary of Delta. 100% (indirect) Yuma Gold Inc. Nevada, USA Not active. Wholly-owned subsidiary of Imperial Gold. 100% (indirect) Notes: 1. Holds a 20% interest in the Northern Dynasty Partnership. The Company holds the remaining 80% interest. 2. Both entities together hold 1,840 claims comprising the Pebble Project. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Company has power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); exposure, or rights, to variable returns from its involvement with the investee; and the ability to use its power over the investee to affect its returns. Intra-Group balances and transactions, including any unrealized income and expenses arising from intra-Group transactions, are eliminated in preparing the Financial Statements. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. |
Foreign Currencies | The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Group. The functional currency of U5 Resources Inc., Pebble Services Inc., Pebble Mines Corp., the Pebble Partnership and its subsidiaries, and Yuma Gold Inc. is the US dollar and for all other entities within the Group, the functional currency is the Canadian dollar. The functional currency determinations were conducted through an analysis of the factors for consideration identified in IAS 21, The Effects of Changes in Foreign Exchange Rates Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. The results and financial position of entities within the Group which have a functional currency that differs from that of the Group are translated into Canadian dollars as follows: (i) assets and liabilities for each statement of financial position are translated at the closing exchange rate at that date; (ii) income and expenses for each income statement are translated at average exchange rates for the period; and (iii) the resulting exchange differences are included in the foreign currency translation reserve within equity. |
Financial Instruments | On initial recognition, a financial asset is classified as measured at amortized cost; fair value through other comprehensive income ("FVTOCI") (debt / equity investment); or fair value through profit or loss ("FVTPL"). A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition. The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Classification of financial assets Amortized cost For a financial asset to be measured at amortized cost, it needs to meet both of the following conditions and not · it is held within a business model whose objective is to hold assets to collect contractual cash flows; and · its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group’s financial assets at amortized cost consist of restricted cash, amounts receivable, and cash and cash equivalents. Fair value through other comprehensive income ("FVTOCI") For a debt investment to be measured at FVTOCI, it needs to meet both of the following conditions and not · it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and · its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Equity instruments at FVTOCI On initial recognition, the Group may irrevocably elect to present subsequent changes in the instrument’s fair value in other comprehensive income ("OCI") provided it is not held for trading. This election is made on an investment-by-investment basis. Fair Value through profit or loss ("FVTPL") All financial assets not classified as measured at amortised cost or FVTOCI are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVTOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. The following accounting policies apply to the subsequent measurement of financial assets: Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. Financial assets at amortized cost These assets are subsequently measured at amortised cost using the effective interest method. The amortized cost is reduced by impairment losses (see below). Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. Debt investments at FVTOCI These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. Equity investments at FVTOCI These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, the estimated future cash flows of the investments have been impacted. For marketable securities classified as FVTOCI, a significant or prolonged decline in the fair value of the securities below their cost is considered to be objective evidence of impairment. Financial liabilities Non-derivative financial liabilities: The Group’s non-derivative financial liabilities consist of trade and other payables and payables to related parties. All financial liabilities that are not held for trading or designated as at FVTPL are recognized initially at fair value net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using the effective interest method. Derivative financial assets and liabilities: The Group currently has no derivative financial assets and liabilities. The Group had warrants which were derivative financial liabilities that were fully exercised during the year ended December 31, 2020, and which were designated as at FVTPL (note 7). |
Exploration and Evaluation Expenditure | Exploration and evaluation expenditures include the costs of acquiring licenses, costs associated with exploration and evaluation activity, and the acquisition date fair value of exploration and evaluation assets acquired in a business combination or an asset acquisition. Exploration and evaluation expenditures are expensed as incurred except for expenditures associated with the acquisition of exploration and evaluation assets through a business combination or an asset acquisition. Costs incurred before the Group has obtained the legal rights to explore an area are expensed. Acquisition costs, including general and administrative costs, are only capitalized to the extent that these costs can be related directly to operational activities in the relevant area of interest where it is considered likely to be recoverable by future exploitation or sale or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. Exploration and evaluation ("E&E") assets are assessed for impairment only when facts and circumstances suggest that the carrying amount of an E&E asset may exceed its recoverable amount or when the Group has sufficient information to reach a conclusion about technical feasibility and commercial viability. Industry-specific indicators for an impairment review arise typically when one of the following circumstances applies: · Substantive expenditure on further exploration and evaluation activities is neither budgeted nor planned; · title to the asset is compromised; · adverse changes in the taxation and regulatory environment; · adverse changes in variations in commodity prices and markets; and · variations in the exchange rate for the currency of operation Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified to mining property and development assets within property, plant and equipment. Recoverability of the carrying amount of any exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of the respective assets. |
Mineral Property, Plant and Equipment | Mineral property, plant and equipment are carried at cost, less accumulated depreciation and accumulated impairment losses. The cost of mineral property, plant and equipment consists of the acquisition costs transferred from E&E assets, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use, including costs to further delineate the ore body, development and construction costs, removal of overburden to initially expose the ore body, an initial estimate of the costs of dismantling, removing the item and restoring the site on which it is located and, if applicable, borrowing costs. Mineral property acquisition and development costs are not currently depreciated as the Pebble Project is still in the development stage and no saleable minerals are being produced. The cost of an item of plant and equipment consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use, and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Depreciation is provided at rates calculated to write off the cost of plant and equipment, less their estimated residual value, using the declining balance method at various rates ranging from 20% to 30% per annum. An item of equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in profit or loss. Where an item of equipment consists of major components with different useful lives, the components are accounted for as separate items of equipment. Expenditures incurred to replace a component of an item of equipment that is accounted for separately, including major inspection and overhaul expenditures, are capitalized. Residual values and estimated useful lives are reviewed at least annually. |
Impairment of Non-Financial Assets | At the end of each reporting period the carrying amounts of the Group’s non-financial assets are reviewed to determine whether there is any indication that these assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount. This increase in the carrying amount is limited to the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. The Group has not recorded any impairment charges in the years presented. |
Leases | At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less, and leases of low-value assets. For these leases, the Group recognizes the lease payments as an expense in loss on a straight-line basis over the term of the lease. The Group recognizes a lease liability and a right-of-use asset ("ROU Asset") at the lease commencement date. The lease liability is initially measured as the present value of future lease payments discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, using the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The incremental borrowing rate is the rate which the Group would have to pay to borrow, over a similar term and with a similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment. Lease payments included in the measurement of the lease liability comprise the following: · fixed payments, including in-substance fixed payments, less any lease incentives receivable; · variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; · amounts expected to be payable by the Group under residual value guarantees; · the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and · payments of penalties for terminating the lease, if the Group expects to exercise an option to terminate the lease. The lease liability is subsequently measured by: · increasing the carrying amount to reflect interest on the lease liability; · reducing the carrying amount to reflect the lease payments made; and · remeasuring the carrying amount to reflect any reassessment or lease modifications. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. The ROU Asset is initially measured at cost, which comprises the following: · the amount of the initial measurement of the lease liability; · any lease payments made at or before the commencement date, less any lease incentives received; · any initial direct costs incurred by the Group; and · an estimate of costs to be incurred by the Group in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories. The ROU Asset is subsequently measured at cost, less any accumulated depreciation and any accumulated impairment losses, and adjusted for any remeasurement of the lease liability. It is depreciated from the commencement date to the earlier of the end of its useful life or the end of the lease term using either the straight-line or units-of-production method depending on which method more accurately reflects the expected pattern of consumption of the future economic benefits. Each lease payment is allocated between the lease liability and finance cost. The finance cost is charged to loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. On the balance sheet, the ROU Assets are presented in " Mineral property, plant and equipment Trade and other payables |
Share Capital, Special Warrants, Warrants and Subscriptions for Shares | Common shares ("shares"), special warrants, warrants and subscriptions received for shares are classified as equity. Transaction costs directly attributable to the issue of these instruments are recognized as a deduction from equity, net of any tax effects. Where units comprising of shares and warrants are issued the proceeds and any transaction costs are apportioned between the shares and warrants according to their relative fair values. Upon conversion of special warrants and warrants into shares and the issue of shares for subscriptions received, the carrying amount, net of a pro rata share of the transaction costs, is transferred to share capital. |
Share-based Payment Transactions | Equity-settled share-based Option Plan The Group operates an equity-settled share-based option plan for its employees and service providers (note 6(d)). The fair value of share purchase options granted is recognized as an employee or consultant expense with a corresponding increase in the equity-settled share-based payments reserve The fair value is measured at grant date for each tranche, which is expensed on a straight-line basis over the vesting period, with a corresponding increase in the Equity Reserve. The fair value of share purchase options granted is measured using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the share purchase options were granted and forfeiture rates as appropriate. At the end of each reporting period, the amount recognized as an expense is adjusted to reflect the actual number of share purchase options that are expected to vest. Deferred Share Unit ("DSU") Plan The Group has a DSU plan for its non-executive directors. The Group determines whether to account for DSUs as equity-settled or cash-settled based on the terms of the contractual arrangement. The fair value of DSUs granted is recognized as an employee expense with a corresponding increase in the Equity Reserve if deemed equity-settled or a liability if deemed cash-settled at grant date. The fair value is estimated by multiplying the number of DSUs with the TSX quoted market price of the Company’s common shares at grant date, and expensed over the vesting period as share-based compensation in loss until the DSUs are fully vested. If the DSUs are cash-settled, the expense and liability are adjusted each reporting period for changes in the TSX quoted market price of the Company’s common shares. Restricted Share Unit ("RSU") Plan The Group has a RSU plan for its employees, executive directors and eligible consultants of the Group. The Group determines whether to account for the RSUs as equity-settled or cash-settled based on the terms of the contractual arrangement. The fair value of RSUs is recognized as an employee expense with a corresponding increase in the Equity Reserve if deemed equity–settled or a liability if deemed cash-settled at grant date. The fair value is estimated by multiplying the number of RSUs with the TSX quoted market price of the Company’s common shares at the grant date. It is then expensed over the vesting period with the credit recognized in equity in the Equity Reserve. If cash-settled, the expense and liability are adjusted each reporting period for changes in the TSX quoted market price of the Company’s common shares. |
Income Taxes | Income tax on the profit or loss for the years presented consists of current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized in other comprehensive income or loss or directly in equity, in which case it is recognized in other comprehensive income or loss or equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regard to previous years. Deferred tax is provided using the balance sheet liability method, providing for unused tax loss carry forwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and differences relating to investments in subsidiaries, associates, and joint ventures to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the end of the reporting period applicable to the period of expected realization or settlement. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Additional income taxes that arise from the distribution of dividends are recognized at the same time as the liability to pay the related dividend. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. |
Restoration, Rehabilitation, and Environmental Obligations | An obligation to incur restoration, rehabilitation and environmental costs arises when environmental disturbance is caused by the exploration or development of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their net present value, are provided for and capitalized at the start of each project to the carrying amount of the asset, along with a corresponding liability as soon as the obligation to incur such costs arises. The timing of the actual rehabilitation expenditure is dependent on a number of factors such as the life and nature of the asset, the operating license conditions and, when applicable, the environment in which the mine operates. Discount rates using a pre-tax rate that reflects the time value of money are used to calculate the net present value. These costs are charged against profit or loss over the economic life of the related asset, through amortization using either the unit-of-production or the straight line method. The corresponding liability is progressively increased as the effect of discounting unwinds, creating an expense recognized in loss. Decommissioning costs are also adjusted for changes in estimates. Those adjustments are accounted for as a change in the corresponding capitalized cost, except where a reduction in costs is greater than the unamortized capitalized cost of the related assets, in which case the capitalized cost is reduced to nil and the remaining adjustment is recognized in profit or loss. The operations of the Group have been, and may in the future be, affected from time to time in varying degree by changes in environmental regulations, including those for site restoration costs. Both the likelihood of new regulations and their overall effect upon the Group are not predictable. The Group has no material restoration, rehabilitation and environmental obligations as the disturbance to date is not significant. The Group has posted two bonds with the Alaskan regulatory authorities as performance guarantees for any potential reclamation liability incurred as a condition for: (i) the issue of the Miscellaneous Land Use Permit at the Pebble Project (note 5(b)), and (ii) the granting of a pipeline right-of-way (note 16(c)). |
Loss Per Share | The Group presents basic and diluted loss per share information for its common shares, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares and any fully prepaid special warrants outstanding during the year. Diluted loss per share does not adjust the loss attributable to common shareholders or the weighted average number of common shares outstanding when the effect is anti-dilutive. |
Segment Reporting | The Group operates in a single reportable operating segment – the acquisition, exploration and development of mineral properties. The Group’s core asset, the Pebble Project, is located in Alaska, USA. |
Significant Accounting Estimates and Judgements | The preparation of these Financial Statements requires management to make certain estimates, judgments and 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. Actual outcomes could differ from these estimates. These Financial Statements include estimates, which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the Financial Statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Sources of estimation uncertainty Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period, that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following: 1. The Group uses the Black-Scholes option pricing model to calculate an estimate of the fair value of share purchase options and warrants granted during the year. In the case of share purchase options, the fair value calculated is used to determine share-based compensation that is included in loss for the year. The fair value calculated for the warrants until they were exercised, was used to value the warrant liabilities on the statement of financial position, with gains or losses being recognized in loss. Inputs used in this model require subjective assumptions, including the expected price volatility from less than one year to five years. Changes in the subjective input assumptions can affect the fair value estimate. The weighted average assumptions applied for prior grants, as there were no grants in the current year, are disclosed in Notes 6(d). 2. Significant assumptions about the future and other sources of estimation uncertainty are made in determining the provision for any deferred income tax expense that is included in the loss for the year and the composition of any deferred income tax liabilities included in the Statement of Financial Position. Critical accounting judgements These include: 1. The Group used judgement in concluding that no impairment indicators exist in relation to the Pebble Project, notwithstanding the receipt of the ROD denial of the permit for the Pebble Project, which may be considered an indicator under IFRS 6, Exploration for and Evaluation of Mineral Resources 2. Pursuant to IAS 21, The Effects of Changes in Foreign Exchange Rates 3. The Group has employed judgement that going concern is an appropriate basis for the preparation of the Financial Statements, as the Group considered existing financial resources in determining that such financial resources are able to meet key corporate and Pebble Project expenditure requirements for at least the next twelve months (note 1). 4. The Group used judgement in terms of accounting for leases in accordance with IFRS 16. IFRS 16 applies a control model to the identification of leases and the determination of whether a contract contains a lease on the basis of whether the customer has the right to control the use of an identified asset for a fixed period of time. In determining the appropriate term for a lease, the Group considered the right of either the lessee or lessor to terminate the lease without permission from the other party with no more than an insignificant penalty as well as whether the Group is reasonably certain to exercise the extension options on the contract. |
Recent Accounting Pronouncements | Amendments to IAS 16, Property, Plant and Equipment The amendments clarify the accounting for the net proceeds from selling any items produced while bringing an item of property, plant and equipment ("PPE") to the location and condition necessary for it to be capable of operating in the manner intended by management. The amendments prohibit entities from deducting amounts received from selling items produced from the cost of PPE while the Group is preparing the asset for its intended use. Instead, sales proceeds and the cost of producing these items will be recognized in profit or loss. The amendments are effective for annual reporting periods beginning on or after January 1, 2022, with earlier application permitted. The amendments apply retrospectively, but only to assets brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the Group first applies the amendments. The Group does not expect any material impact on the Group’s financial statements on adoption of these amendments. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Schedule of Subsidiaries Consolidated Financial Statements | Name of Subsidiary Place of Incorporation Principal Activity Percent owned 3537137 Canada Inc. 1 Canada Holding Company. Wholly-owned subsidiary of the Company. 100% Pebble Services Inc. Nevada, USA Management and services company. Wholly-owned subsidiary of the Company. 100% Northern Dynasty Partnership Alaska, USA Holds 99.9% interest in the Pebble Partnership and 100% of Pebble Mines. 100% (indirect) Pebble Limited Partnership ("Pebble Partnership") Alaska, USA Limited Partnership. Ownership and Exploration of the Pebble Project. 100% (indirect) Pebble Mines Corp. ("Pebble Mines") Delaware, USA General Partner. Holds 0.1% interest in the Pebble Partnership. 100% (indirect) Pebble West Claims Corporation 2 Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) Pebble East Claims Corporation 2 Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) Pebble Pipeline Corporation Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) Pebble Performance Dividend LLC Alaska, USA Holding Company. Subsidiary of the Pebble Partnership. 100% (indirect) U5 Resources Inc. Nevada, USA Holding Company. Wholly-owned subsidiary of the Company. 100% Cannon Point Resources Ltd. British Columbia, Canada Not active. Wholly-owned subsidiary of the Company. 100% MGL Subco Ltd. ("MGL") British Columbia, Canada Not active. Wholly-owned subsidiary of the Company. 100% Delta Minerals Inc. ("Delta") British Columbia, Canada Not active. Wholly-owned subsidiary of MGL. 100% (indirect) Imperial Gold Corporation ("Imperial Gold") British Columbia, Canada Not active. Wholly-owned subsidiary of Delta. 100% (indirect) Yuma Gold Inc. Nevada, USA Not active. Wholly-owned subsidiary of Imperial Gold. 100% (indirect) |
Mineral Property, Plant and E_2
Mineral Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Mineral Property, Plant and Equipment | |
Schedule of Exploration and Evaluation Assets | The Group’s exploration and evaluation assets are comprised of the following: Year ended December 31, 2021 Mineral Property interest 1 Plant and equipment 2 Total Cost Beginning Balance $ 112,541 $ 3,018 $ 115,559 Addition – 277 277 Disposal 2 – (29 ) (29 ) Modification of lease terms – (237 ) (237 ) Ending balance 112,541 3,029 115,570 Accumulated depreciation Beginning Balance – (2,148 ) (2,148 ) Depreciation charge for the year 3 – (329 ) (329 ) Derecognition on disposal 2 – 23 23 Ending balance – (2,454 ) (2,454 ) Foreign currency translation difference Beginning Balance 22,083 152 22,235 Movement for period (1,004 ) (8 ) (1,012 ) Ending balance 21,079 144 21,223 Net carrying value – December 31, 2021 $ 133,620 $ 719 $ 134,339 Year ended December 31, 2020 Mineral Property interest 1 Plant and equipment 2 Total Cost Beginning balance and Ending balance $ 112,541 $ 3,018 $ 115,559 Accumulated depreciation Beginning balance – (1,615 ) (1,615 ) Depreciation charge for the year 3 – (533 ) (533 ) Ending balance – (2,148 ) (2,148 ) Foreign currency translation difference Beginning balance 24,766 157 24,923 Movement for the year (2,683 ) (5 ) (2,688 ) Ending balance 22,083 152 22,235 Net carrying value –December 31, 2020 $ 134,624 $ 1,022 $ 135,646 Notes to tables: 1. Comprises the Pebble Project, a contiguous block of 1,840 mineral claims covering approximately 274 square miles located in southwest Alaska, 17 miles (30 kilometers) from the villages of Iliamna and Newhalen, and approximately 200 miles (320 kilometers) southwest of the city of Anchorage. 2. Includes Right-of-use assets ("ROU Assets"), which relate to the use of office space, a copier, hangers, yard storage and one vehicle, which was disposed of in February 2021. The following comprises ROU Assets: Year ended December 31, 2021 Land and Buildings Equipment Total Cost Beginning balance $ 1,591 $ 53 $ 1,644 Addition 277 – 277 Disposal – (21 ) (21 ) Modification of lease terms (237 ) – (237 ) Ending balance 1,631 32 1,663 Accumulated depreciation Beginning balance (723 ) (26 ) (749 ) Depreciation charge for the year 3 (224 ) (11 ) (235 ) Derecognition on disposal – 17 17 Ending balance (947 ) (20 ) (967 ) Foreign currency translation difference Beginning balance (69 ) (1 ) (70 ) Movement for year (7 ) – (7 ) Ending balance (76 ) (1 ) (77 ) Net carrying value – December 31, 2021 $ 608 $ 11 $ 619 Year ended December 31, 2020 Land and Buildings Equipment Total Cost Beginning and Ending balance $ 1,591 $ 53 $ 1,644 Accumulated depreciation Beginning balance (411 ) (9 ) (420 ) Depreciation (312 ) (17 ) (329 ) Ending balance (723 ) (26 ) (749 ) Foreign currency translation difference Beginning balance (63 ) (1 ) (64 ) Movement for year (6 ) – (6 ) Ending Balance (69 ) (1 ) (70 ) Net carrying value – December 31, 2020 $ 799 $ 26 $ 825 3. For the year ended December 31, 2021, ROU Asset depreciation of $192 (2020 – $235) is included in general and administrative expenses for the year ended December 31, 2021. The remainder is included in exploration and evaluation expenses. |
Amounts Receivable and Prepai_2
Amounts Receivable and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Amounts Receivable and Prepaid Expenses | |
Schedule of Amounts Receivable and Prepaid Expenses | December 31 December 31 2021 2020 Sales tax receivable $ 79 $ 67 Deferred At-the-Market Offering costs 1 352 – Interest, refundable deposits and other receivables 85 587 Prepaid expenses 2 1,351 823 Total $ 1,867 $ 1,477 |
Capital and Reserves (Tables)
Capital and Reserves (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Capital and Reserves | |
Schedule of Share Purchase Warrants and Options Not Issued Under the Group's Incentive Plan | Continuity Cannon Point options 1 Mission Gold warrants 1 Other warrants 2 Broker warrants 3 Total Balance January 1, 2020 223,250 3,764,626 27,541,065 244,000 31,772,941 Exercised (11,750 ) (3,550,835 ) (9,827,800 ) (244,000 ) (13,634,385 ) Expired – (213,791 ) – – (213,791 ) Balance December 31, 2020 211,500 – 17,713,265 – 17,924,765 Exercised (117,500 ) – (14,318,452 ) – (14,435,952 ) Expired – – (3,394,813 ) – (3,394,813 ) Balance December 31, 2021 94,000 – – – 94,000 Weighted averages per option/warrant Cannon Point options Other warrants Total 2021 Exercise price $ 0.36 – $ 0.36 Remaining life in years 1.74 – 1.74 2020 Exercise price $ 0.37 $ 0.65 $ 0.65 Remaining life in years 1.46 0.45 0.46 Notes to tables: 1. The Group issued options and warrants in exchange for those which were outstanding in Cannon Point Resources Ltd. ("Cannon Point") and Mission Gold Ltd. ("Mission Gold") on the acquisition of these companies in October 2015 and December 2015, respectively. The Mission Gold warrants had an exercise price of $0.55 per warrant. 2. Warrants were issued pursuant to the June 2016 prospectus financing, July 2016 private placement and the 2019 non-revolving term loan credit facility agreement (the "Credit Facility") (note 8). 3. The Broker Warrants were issued to the underwriters pursuant to the June 2019 prospectus financing and had an exercise price of US$0.41 per warrant. |
Summary of Options Outstanding | Continuity of options Number of options Weighted average exercise price ($/option) Balance January 1, 2020 25,752,266 0.96 Cancelled (22,000 ) 1.16 Exercised (3,991,066 ) 0.99 Expired (24,200 ) 1.75 Forfeited (16,500 ) 1.36 Granted 1 6,783,000 2.01 Balance December 31, 2020 28,481,500 1.20 Exercised (5,084,000 ) 0.51 Expired (2,572,000 ) 0.61 Balance December 31, 2021 20,825,500 1.45 |
Schedule of Options Outstanding and Exercisable | December 31, 2021 December 31, 2020 Exercise prices ($) Number of options outstanding Number of options exercisable Weighted Average Remaining contractual life (years) Number of options outstanding Number of options exercisable Weighted Average Remaining contractual life (years) 0.48 – – – 200,000 200,000 0.20 0.49 – – – 4,455,000 4,455,000 0.53 0.501 – – – 1,520,000 1,520,000 0.12 0.76 3,300,000 3,300,000 1.61 4,761,000 4,761,000 2.08 0.99 6,368,500 6,368,500 2.74 6,388,500 6,388,500 3.74 1.75 4,386,000 4,386,000 0.57 4,386,000 4,386,000 1.57 2.01 6,696,000 6,696,000 3.55 6,696,000 3,348,000 4.55 2.34 75,000 75,000 1.58 75,000 75,000 2.58 Total 20,825,500 20,825,500 28,481,500 25,133,500 Note: 1. These options were set to expire on October 10, 2020, but were extended pursuant to certain provisions of the options plan. |
Schedule of Options Exercised | Year ended December 31, 2021 Month Number of options Weighted average exercise price ($/option) Weighted average market share price on exercise ($/option) January 2021 405,000 0.50 0.82 February 2021 2,494,000 0.53 0.89 March 2021 150,000 0.48 0.89 June 2021 590,000 0.49 0.64 July 2021 1,445,000 0.49 0.58 Total 5,084,000 0.51 0.76 Year ended December 31, 2020 Month Number of options Weighted average exercise price ($/option) Weighted average market share price on exercise ($/option) May 2020 388,000 0.71 1.33 June 2020 1,162,900 0.84 1.82 July 2020 908,500 1.46 2.34 August 2020 1,165,000 0.97 2.00 September 2020 210,000 0.69 1.48 October 2020 156,666 0.50 1.38 Total 3,991,066 0.99 1.90 |
Schedule of Restricted Share Units Outstanding | Continuity of DSUs Number of DSUs Weighted average fair value ($/DSU) Balance January 1, 2020 and December 31, 2020 458,129 0.69 Granted 1 19,582 0.60 Balance December 31, 2021 477,711 0.69 |
Schedule of Foreign Currency Translation Reserve | Continuity Balance January 1, 2020 $ 32,365 Loss on translation of foreign subsidiaries (2,704 ) Balance December 31, 2020 29,661 Loss on translation of foreign subsidiaries (903 ) Balance December 31, 2021 $ 28,758 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and Other Payables | |
Schedule of Trade and Other Payables | December 31 December 31 Current liabilities 2021 2020 Falling due within the year Trade 1 $ 1,922 $ 6,304 Lease liabilities 2 126 259 Total $ 2,048 $ 6,563 Non-current liabilities Trade 1 $ 804 $ – Lease liabilities 2 561 657 Total $ 1,365 $ 657 Notes to table: 1. At December 31, 2021, Non-current trade liabilities includes fees due to legal counsel of US$635 payable on completion of a partnering transaction. At December 31, 2020, those fees were included in current liabilities. 2. Lease liabilities relate to lease of offices, a copier and yard storage, which have remaining lease terms of 12 to 101 months and interest rates of 9.5% – 12% over the term of the leases. The following summarizes lease liabilities for the year ended December 31, 2021 and 2020: Lease liabilities 2021 2020 Beginning balance $ 916 $ 1,220 Interest expense 67 108 Effect of modification to lease term (284 ) – Lease payments (267 ) (402 ) Lease recognition 268 – Lease settlement (5 ) – Foreign currency translation difference (8 ) (10 ) Ending balance 687 916 Current portion 126 259 Non-current portion 561 657 Total $ 687 $ 916 |
Schedule of Undiscounted Lease Liabilities | Total Less than one year $ 190 One to five years 550 Later than 5 years 186 Total undiscounted lease liabilities $ 926 |
Exploration and Evaluation an_2
Exploration and Evaluation and General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and Other Payables | |
Schedule of Exploration and Evaluation Expenses | E&E 2021 2020 Engineering $ 3,860 $ 9,171 Environmental 2,237 11,782 Property fees 1,150 2,104 Site activities 2,089 3,438 Socio-economic 2,403 10,451 Transportation 523 1,919 Other activities and travel 173 354 Total $ 12,435 $ 39,219 |
Schedule of General and Administrative Expenses | G&A 2021 2020 Conference and travel $ 131 $ 179 Consulting 1,902 2,346 Depreciation of right-of-use assets 192 235 Insurance 1,502 848 Office costs, including information technology 815 1,132 Management and administration 3,891 5,419 Shareholder communication 1,309 1,039 Trust and filing 249 347 Total $ 9,991 $ 11,545 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Statement [Line Items] | |
Schedule of Related Party Balances and Transactions | December 31 December 31 Payables to related parties 2021 2020 Key management personnel ("KMP")(a) $ 35 $ 34 Hunter Dickinson Services Inc. ("HDSI")(b) 341 814 Total payables to related parties $ 376 $ 848 |
Key Management Personnel | |
Statement [Line Items] | |
Schedule of Outstanding Balances | Transaction 2021 2020 Compensation Amounts paid and payable to HDSI for services of KMP employed by HDSI 1 $ 2,882 $ 2,408 Amounts paid and payable to KMP 2 2,624 4,525 Bonuses paid to KMP 3 – 1,216 Interest payable on loans from KMP 4 – 5 5,506 8,154 Share-based compensation 5 1,854 6,207 Total compensation $ 7,360 $ 14,361 Notes to table: 1. The Group’s CEO, CFO, Board Chair and senior management, other than disclosed in note 2 below, are employed by the Group through HDSI (refer (b)). 2. Represents short-term employee benefits, including director’s fees paid to the Group’s independent directors, and salaries paid and payable to the Interim PLP CEO (2020 – included the former PLP CEO) and PMC Chair, PLP EVP, SVPs, VP and Chief of Staff. The SVP Engineering was employed by the Group through a wholly-owned US subsidiary of HDSI ("HDUS") until the end of February 2021. The Group reimbursed HDUS for costs incurred. 3. In 2020, incentive bonuses were paid to the former PLP CEO, SVP, Corporate Affairs and Chief of Staff. 4. In January 2020, the Group repaid loans totalling $1,150 advanced by the Group’s Board Chair and CEO pursuant to the Credit Facility (note 8). $9 in interest was paid on the loans of which $5 was accrued in January 2020. The following reconciles loans repaid: Total loans including interest payable at January 1, 2020 $ 971 Additional loans provided 183 Interest accrued 5 Loans repaid (1,159 ) Balance December 31, 2020 $ – 5. Consists of the expense recognized for share purchase options issued and/or vesting and the grant of DSUs (note 6(e)) during the respective periods. Transactions 2021 2020 Services rendered by HDSI Technical 1 Engineering $ 735 $ 904 Environmental 434 245 Socioeconomic 285 486 Other technical services 154 307 1,608 1,942 General and administrative Management, consulting, corporate communications, secretarial, financial and administration 3,029 3,011 Shareholder communication 721 614 3,750 3,625 Total for services rendered 5,358 5,567 Reimbursement of third party expenses Conferences and travel 49 119 Insurance 71 53 Office supplies and information technology 2 502 418 Total reimbursed 622 590 Total $ 5,980 $ 6,157 |
Basic and Diluted Loss Per Sh_2
Basic and Diluted Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Loss | |
Schedule of Basic and Diluted Loss Per Share | 2021 2020 Loss attributable to shareholders $ 31,542 $ 63,872 Weighted average number of shares outstanding (000s) 521,459 473,668 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax | |
Schedule of Reconciliation of Effective Tax Rate | Year ended December 31 Reconciliation of effective tax rate 2021 2020 Net loss $ (31,542 ) $ (63,872 ) Total income tax (recovery) expense – – Loss excluding income tax (31,542 ) (63,872 ) Income tax recovery using the Company's domestic tax rate (8,516 ) (17,245 ) Non-deductible expenses and other 764 1,393 Change in tax rates – – Deferred income tax assets not recognized 7,752 15,852 $ – $ – |
Schedule of Deferred Income Tax Assets (Liabilities) | December 31 December 31 Deferred income tax assets (liabilities) 2021 2020 Tax losses $ 2,451 $ 2,421 Net deferred income tax assets 2,451 2,421 Resource property/investment in Pebble Partnership (2,451 ) (2,421 ) Equipment – – Net deferred income tax liability $ – $ – |
Schedule of Taxable Temporary Differences | Resource Expiry Tax losses pools Other Within one year $ – $ – $ – One to five years – – 4,955 After five years 297,507 – – No expiry date 33,742 92,812 190 Total $ 331,249 $ 92,812 $ 5,145 |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Risk Management | |
Schedule of Financial Assets and Liabilities | December 31 December 31 Exposure 2021 2020 Amounts receivable $ 85 $ 587 Restricted cash 785 791 Cash and cash equivalents 22,291 42,460 Total exposure $ 23,161 $ 43,838 December 31 December 31 2021 2020 Financial assets Amounts receivable $ 168 $ 649 Cash and cash equivalents and restricted cash 5,433 23,624 5,601 24,273 Financial liabilities Non-current trade payables (1,365 ) (657 ) Current trade and other payables (1,670 ) (6,170 ) Payables to related parties (190 ) (650 ) (3,225 ) (7,477 ) Net financial assets exposed to foreign currency risk $ 2,376 $ 16,796 |
Commitment and contingencies (T
Commitment and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Capital and Reserves | |
Schedule of Commitments | Total Less than one year $ 95 One to five years 336 Total $ 431 |
NATURE AND CONTINUANCE OF OPE_2
NATURE AND CONTINUANCE OF OPERATIONS (Details Narrative) | 12 Months Ended | ||||||
Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | |
Nature and Continuance of Operations | |||||||
Proceeds from sale of shares | $ 824,000 | ||||||
Proceeds from exercise of warrants | $ 11,950 | ||||||
Cash and cash equivalents | 22,291,000 | $ 42,460,000 | $ 14,038,000 | ||||
Working capital (deficiency) | (21,734,000) | 36,526,000 | |||||
Net loss | (31,542,000) | $ (63,872,000) | $ (63,872) | $ 31,542 | |||
Deficit | (651,520,000) | $ (619,978,000) | |||||
Gross proceeds | $ 688,000 | $ 872 | |||||
Common shares soldout | $ 14,500,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Northern Dynasty Partnership | |
Statement [Line Items] | |
Place of Incorporation | Alaska, USA |
Principal Activity | Holds 99.9% interest in the Pebble Partnership and 100% of Pebble Mines. |
Percent Owned | 100.00% |
Pebble Limited Partnership | |
Statement [Line Items] | |
Place of Incorporation | Alaska, USA |
Principal Activity | Limited Partnership. Ownership and Exploration of the Pebble Project. |
Percent Owned | 100.00% |
Pebble Mines Corp. | |
Statement [Line Items] | |
Place of Incorporation | Delaware, USA |
Principal Activity | General Partner. Holds 0.1% interest in the Pebble Partnership. |
Percent Owned | 100.00% |
Pebble West Claims Corporation | |
Statement [Line Items] | |
Place of Incorporation | Alaska, USA |
Principal Activity | Holding Company. Subsidiary of the Pebble Partnership. |
Percent Owned | 100.00% |
U5 Resources Inc. | |
Statement [Line Items] | |
Place of Incorporation | Nevada, USA |
Principal Activity | Holding Company. Wholly-owned subsidiary of the Company. |
Percent Owned | 100.00% |
Cannon Point Resources Ltd. | |
Statement [Line Items] | |
Place of Incorporation | British Columbia, Canada |
Principal Activity | Not active. Wholly-owned subsidiary of the Company. |
Percent Owned | 100.00% |
MGL Subco Ltd. (" MGL") | |
Statement [Line Items] | |
Place of Incorporation | British Columbia, Canada |
Principal Activity | Not active. Wholly-owned subsidiary of the Company. |
Percent Owned | 100.00% |
Delta Minerals Inc. ("Delta") | |
Statement [Line Items] | |
Place of Incorporation | British Columbia, Canada |
Principal Activity | Not active. Wholly-owned subsidiary of MGL. |
Percent Owned | 100.00% |
Imperial Gold Corporation ("Imperial Gold") | |
Statement [Line Items] | |
Place of Incorporation | British Columbia, Canada |
Principal Activity | Not active. Wholly-owned subsidiary of Delta. |
Percent Owned | 100.00% |
Yuma Gold Inc. | |
Statement [Line Items] | |
Place of Incorporation | Nevada, USA |
Principal Activity | Not active. Wholly-owned subsidiary of Imperial Gold. |
Percent Owned | 100.00% |
Canada Inc | |
Statement [Line Items] | |
Place of Incorporation | Canada |
Principal Activity | Holding Company. Wholly-owned subsidiary of the Company. |
Percent Owned | 100.00% |
Pebble East Claims Corporation | |
Statement [Line Items] | |
Place of Incorporation | Alaska, USA |
Principal Activity | Holding Company. Subsidiary of the Pebble Partnership. |
Percent Owned | 100.00% |
Pebble Pipeline Corporation | |
Statement [Line Items] | |
Place of Incorporation | Alaska, USA |
Principal Activity | Holding Company. Subsidiary of the Pebble Partnership. |
Percent Owned | 100.00% |
Pebble Performance Dividend LLC | |
Statement [Line Items] | |
Place of Incorporation | Alaska, USA |
Principal Activity | Holding Company. Subsidiary of the Pebble Partnership. |
Percent Owned | 100.00% |
Pebble Services Inc. | |
Statement [Line Items] | |
Place of Incorporation | Nevada, USA |
Principal Activity | Management and services company. Wholly-owned subsidiary of the Company. |
Percent Owned | 100.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 11 Months Ended | 12 Months Ended |
Dec. 12, 2021 | Dec. 31, 2021 | |
Statement [Line Items] | ||
Description of lease | lease term of 12 months or less | |
Description of claims | Both entities together hold 1,840 claims comprising | |
Holding interest | 20.00% | |
Remaining interest | 80.00% | |
Up [Member] | ||
Statement [Line Items] | ||
Remaining interest | 12.00% | |
Percent Owned | 30.00% | |
Bottom [Member] | ||
Statement [Line Items] | ||
Remaining interest | 9.50% | |
Percent Owned | 20.00% |
Mineral Property Plant and Equi
Mineral Property Plant and Equipment (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | ||
Property, plant, and equipment, beginning | $ 135,646,000 | |
Property, plant, and equipment, ending | 134,339,000 | $ 135,646,000 |
ROU Assets[member] | ||
Statement [Line Items] | ||
Depreciation | 192,000 | 235,000 |
Cost | ||
Statement [Line Items] | ||
Property, plant, and equipment, beginning | 115,559,000 | |
Additions | 277,000 | |
Disposal | (29,000) | |
Modification of lease terms | (237,000) | |
Property, plant, and equipment, ending | 115,570,000 | 115,559,000 |
Cost | ROU Assets[member] | ||
Statement [Line Items] | ||
Property, plant, and equipment, beginning | 1,644,000 | |
Additions | 277,000 | |
Disposal | (21,000) | |
Modification of lease terms | (237,000) | |
Property, plant, and equipment, ending | 1,663,000 | 1,644,000 |
Cost | Mineral Property Interest | ||
Statement [Line Items] | ||
Property, plant, and equipment, beginning | 112,541,000 | |
Additions | 0 | |
Disposal | 0 | |
Modification of lease terms | 0 | |
Property, plant, and equipment, ending | 112,541,000 | 112,541,000 |
Cost | Plant and Equipment | ||
Statement [Line Items] | ||
Property, plant, and equipment, beginning | 3,018,000 | |
Additions | 277,000 | |
Disposal | (29,000) | |
Modification of lease terms | (237,000) | |
Property, plant, and equipment, ending | 3,029,000 | 3,018,000 |
Cost | Equipment | ||
Statement [Line Items] | ||
Property, plant, and equipment, beginning | 53,000 | |
Additions | 0 | |
Disposal | (21,000) | |
Modification of lease terms | 0 | |
Property, plant, and equipment, ending | 32,000 | 53,000 |
Cost | Lands and Buildings [Member] | ||
Statement [Line Items] | ||
Property, plant, and equipment, beginning | 1,591,000 | |
Additions | 277,000 | |
Modification of lease terms | (237,000) | |
Property, plant, and equipment, ending | 1,631,000 | 1,591,000 |
Accumulated Depreciation | ||
Statement [Line Items] | ||
Accumulated depreciation, beginning | (2,148,000) | (1,615,000) |
Depreciation | 329,000 | 533,000 |
Derecognition on disposal | 23,000 | |
Accumulated depreciation, ending | (2,454,000) | (2,148,000) |
Accumulated Depreciation | ROU Assets[member] | ||
Statement [Line Items] | ||
Accumulated depreciation, beginning | (749,000) | (420,000) |
Depreciation | 235,000 | 329,000 |
Derecognition on disposal | 17,000 | |
Accumulated depreciation, ending | (967,000) | (749,000) |
Accumulated Depreciation | Mineral Property Interest | ||
Statement [Line Items] | ||
Accumulated depreciation, beginning | 0 | 0 |
Depreciation | 0 | 0 |
Derecognition on disposal | 0 | |
Accumulated depreciation, ending | 0 | 0 |
Accumulated Depreciation | Plant and Equipment | ||
Statement [Line Items] | ||
Accumulated depreciation, beginning | (2,148,000) | (1,615,000) |
Depreciation | 329,000 | 533,000 |
Derecognition on disposal | 23,000 | |
Accumulated depreciation, ending | (2,454,000) | (2,148,000) |
Accumulated Depreciation | Equipment | ||
Statement [Line Items] | ||
Accumulated depreciation, beginning | (26,000) | (9,000) |
Depreciation | 11,000 | 17,000 |
Derecognition on disposal | 17,000 | |
Accumulated depreciation, ending | (20,000) | (26,000) |
Accumulated Depreciation | Lands and Buildings [Member] | ||
Statement [Line Items] | ||
Accumulated depreciation, beginning | (723,000) | (411,000) |
Depreciation | 224,000 | 312,000 |
Derecognition on disposal | 0 | |
Accumulated depreciation, ending | (947,000) | (723,000) |
Foreign Currency Translation Difference | ||
Statement [Line Items] | ||
Foreign currency translation difference beginning balance | 22,235,000 | 24,923,000 |
Foreign currency translation difference ending balacne | 21,223,000 | 22,235,000 |
Net carrying value | 134,339,000 | 135,646,000 |
Movement for the year | (1,012,000) | (2,688,000) |
Foreign Currency Translation Difference | ROU Assets[member] | ||
Statement [Line Items] | ||
Foreign currency translation difference beginning balance | (70,000) | (64,000) |
Foreign currency translation difference ending balacne | (77,000) | (70,000) |
Net carrying value | 619,000 | 825,000 |
Movement for the year | (7,000) | (6,000) |
Foreign Currency Translation Difference | Mineral Property Interest | ||
Statement [Line Items] | ||
Foreign currency translation difference beginning balance | 22,083,000 | 24,766,000 |
Movement for the year | (1,004,000) | (2,683,000) |
Foreign currency translation difference ending balacne | 21,079,000 | 22,083,000 |
Net carrying value | 133,620,000 | 134,624,000 |
Foreign Currency Translation Difference | Plant and Equipment | ||
Statement [Line Items] | ||
Foreign currency translation difference beginning balance | 152,000 | 157,000 |
Movement for the year | (8,000) | (5,000) |
Foreign currency translation difference ending balacne | 144,000 | 152,000 |
Net carrying value | 719,000 | 1,022,000 |
Foreign Currency Translation Difference | Equipment | ||
Statement [Line Items] | ||
Foreign currency translation difference beginning balance | (1,000) | (1,000) |
Foreign currency translation difference ending balacne | (1,000) | (1,000) |
Net carrying value | 11,000 | 26,000 |
Movement for the year | 0 | 0 |
Foreign Currency Translation Difference | Lands and Buildings [Member] | ||
Statement [Line Items] | ||
Foreign currency translation difference beginning balance | (69,000) | (63,000) |
Foreign currency translation difference ending balacne | (76,000) | (69,000) |
Net carrying value | 608,000 | 799,000 |
Movement for the year | $ (7,000) | $ (6,000) |
Mineral Property Plant and Eq_2
Mineral Property Plant and Equipment (Details Narrative) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
ROU Assets[member] | ||
Statement [Line Items] | ||
Depreciation | $ 192 | $ 235 |
AMOUNTS RECEIVABLE AND PREPAI_3
AMOUNTS RECEIVABLE AND PREPAID EXPENSES (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) |
Amounts Receivable and Prepaid Expenses | ||||
Sales tax receivable | $ 79 | $ 67 | ||
Deferred At-the-Market Offering costs | $ 352 | $ 0 | ||
Interest, refundable deposits and other receivables | 85 | 587 | ||
Prepaid expenses | 1,351 | 823 | ||
Total | $ 1,867 | $ 1,477 |
CASH AND CASH EQUIVALENTS AND_2
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021CAD ($) | |
Amounts Receivable and Prepaid Expenses | |||
Nominal income | $ 2 | $ 2 | |
Surety bond | $ 2,000 |
CAPITAL AND RESERVES (Details)
CAPITAL AND RESERVES (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | ||
Beginning Balance | 17,924,765 | 31,772,941 |
Exercised | (14,435,952) | (13,634,385) |
Expired | 3,394,813 | (213,791) |
Ending Balance | 94,000 | 17,924,765 |
Cannon Point | ||
Statement [Line Items] | ||
Beginning Balance | 211,500 | 223,250 |
Exercised | (117,500) | (11,750) |
Expired | 0 | 0 |
Ending Balance | 94,000 | 211,500 |
Mission Gold | ||
Statement [Line Items] | ||
Beginning Balance | 0 | 3,764,626 |
Exercised | 0 | (3,550,835) |
Expired | 0 | (213,791) |
Ending Balance | 0 | 0 |
Other | ||
Statement [Line Items] | ||
Beginning Balance | 17,713,265 | 27,541,065 |
Exercised | (14,318,452) | (9,827,800) |
Expired | 3,394,813 | 0 |
Ending Balance | 0 | 17,713,265 |
Broker Warrants | ||
Statement [Line Items] | ||
Beginning Balance | 0 | 244,000 |
Exercised | 0 | (244,000) |
Expired | 0 | 0 |
Ending Balance | 0 | 0 |
CAPITAL AND RESERVES (Details 1
CAPITAL AND RESERVES (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | ||
Options and warrant Issued, Exercise Price | $ 0.36 | $ 0.65 |
Options and warrant Issued, Remaining life in years | 1 year 8 months 26 days | 5 months 15 days |
Cannon Point | ||
Statement [Line Items] | ||
Options and warrant Issued, Exercise Price | $ 0.36 | $ 0.37 |
Options and warrant Issued, Remaining life in years | 1 year 8 months 26 days | 1 year 5 months 15 days |
Other | ||
Statement [Line Items] | ||
Options and warrant Issued, Exercise Price | $ 0 | $ 0.65 |
Options and warrant Issued, Remaining life in years | 0 years | 5 months 12 days |
CAPITAL AND RESERVES (Details 2
CAPITAL AND RESERVES (Details 2) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Capital and Reserves | ||
Number of options, Beginning Balance | 28,481,500 | 25,752,266 |
Number of options, Cancelled | (22,000) | |
Number of options, Exercised | (5,084,000) | (3,991,066) |
Number of options, Expired | (2,572,000) | (24,200) |
Number of options, Forfeited | (16,500) | |
Number of options, Granted | 6,783,000 | |
Number of options, Ending Balance | 20,825,500 | 28,481,500 |
Weighted average exercise price, Beginning Balance | $ 1.20 | $ 0.96 |
Weighted average exercise price, Cancelled | 1.16 | |
Weighted average exercise price, Exercised | 0.51 | 0.99 |
Weighted average exercise price, Expired | 0.61 | 1.75 |
Weighted average exercise price, Forfeited | 1.36 | |
Weighted average exercise price, Granted | 2.01 | |
Weighted average exercise price, Ending Balance | $ 1.45 | $ 1.20 |
CAPITAL AND RESERVES (Details 3
CAPITAL AND RESERVES (Details 3) | 12 Months Ended | |
Dec. 31, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares | |
Statement [Line Items] | ||
Options outstanding, Number outstanding | 20,825,500 | 28,481,500 |
Options outstanding, Options exercisable | 20,825,500 | 25,133,500 |
Exercise Price Range 1 | ||
Statement [Line Items] | ||
Options outstanding, Number outstanding | 0 | 200,000 |
Options outstanding, Options exercisable | 0 | 200,000 |
Options outstanding, Exercise prices | $ / shares | $ 0.48 | $ 0.48 |
Options outstanding, Weighted average remaining contractual life (years) | 2 months 12 days | |
Exercise Price Range 2 | ||
Statement [Line Items] | ||
Options outstanding, Number outstanding | 0 | 4,455,000 |
Options outstanding, Options exercisable | 0 | 4,455,000 |
Options outstanding, Weighted average remaining contractual life (years) | 6 months 10 days | |
Options outstanding, Exercise prices | $ / shares | $ 0.49 | $ 0.49 |
Exercise Price Range 3 | ||
Statement [Line Items] | ||
Options outstanding, Number outstanding | 0 | 1,520,000 |
Options outstanding, Options exercisable | 0 | 1,520,000 |
Options outstanding, Exercise prices | $ / shares | $ 0.501 | $ 0.501 |
Options outstanding, Weighted average remaining contractual life (years) | 1 month 13 days | |
Exercise Price Range 4 | ||
Statement [Line Items] | ||
Options outstanding, Number outstanding | 3,300,000 | 4,761,000 |
Options outstanding, Options exercisable | 3,300,000 | 4,761,000 |
Options outstanding, Exercise prices | $ / shares | $ 0.76 | $ 0.76 |
Options outstanding, Weighted average remaining contractual life (years) | 1 year 7 months 9 days | 2 years 29 days |
Exercise Price Range 5 | ||
Statement [Line Items] | ||
Options outstanding, Number outstanding | 6,368,500 | 6,388,500 |
Options outstanding, Options exercisable | 6,368,500 | 6,388,500 |
Options outstanding, Exercise prices | $ / shares | $ 0.99 | $ 0.99 |
Options outstanding, Weighted average remaining contractual life (years) | 2 years 8 months 26 days | 3 years 8 months 26 days |
Exercise Price Range 6 | ||
Statement [Line Items] | ||
Options outstanding, Number outstanding | 4,386,000 | 4,386,000 |
Options outstanding, Options exercisable | 4,386,000 | 4,386,000 |
Options outstanding, Exercise prices | $ / shares | $ 1.75 | $ 1.75 |
Options outstanding, Weighted average remaining contractual life (years) | 6 months 25 days | 1 year 6 months 25 days |
Exercise Price Range 7 | ||
Statement [Line Items] | ||
Options outstanding, Number outstanding | 6,696,000 | 6,696,000 |
Options outstanding, Options exercisable | 6,696,000 | 3,348,000 |
Options outstanding, Exercise prices | $ / shares | $ 2.01 | $ 2.01 |
Options outstanding, Weighted average remaining contractual life (years) | 3 years 6 months 18 days | 4 years 6 months 18 days |
Exercise Price Range 8 | ||
Statement [Line Items] | ||
Options outstanding, Number outstanding | 75,000 | 75,000 |
Options outstanding, Options exercisable | 75,000 | 75,000 |
Options outstanding, Exercise prices | $ / shares | $ 2.34 | $ 2.34 |
Options outstanding, Weighted average remaining contractual life (years) | 1 year 6 months 29 days | 2 years 6 months 29 days |
CAPITAL AND RESERVES (Details 4
CAPITAL AND RESERVES (Details 4) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | ||
Number of options | 5,084,000 | 3,991,066 |
Weighted average exercise price | $ 0.51 | $ 0.99 |
Weighted average market share price on exercise | $ 0.76 | $ 1.90 |
May 2020 | ||
Statement [Line Items] | ||
Number of options | 388,000 | |
Weighted average exercise price | $ 0.71 | |
Weighted average market share price on exercise | $ 1.33 | |
June 2020 | ||
Statement [Line Items] | ||
Number of options | 1,162,900 | |
Weighted average exercise price | $ 0.84 | |
Weighted average market share price on exercise | $ 1.82 | |
July 2020 | ||
Statement [Line Items] | ||
Number of options | 908,500 | |
Weighted average exercise price | $ 1.46 | |
Weighted average market share price on exercise | $ 2.34 | |
August 2020 | ||
Statement [Line Items] | ||
Number of options | 1,165,000 | |
Weighted average exercise price | $ 0.97 | |
Weighted average market share price on exercise | $ 2 | |
September 2020 | ||
Statement [Line Items] | ||
Number of options | 210,000 | |
Weighted average exercise price | $ 0.69 | |
Weighted average market share price on exercise | $ 1.48 | |
October 2020 | ||
Statement [Line Items] | ||
Number of options | 156,666 | |
Weighted average exercise price | $ 0.50 | |
Weighted average market share price on exercise | $ 1.38 | |
January 2021 | ||
Statement [Line Items] | ||
Number of options | 405,000 | |
Weighted average exercise price | $ 0.50 | |
Weighted average market share price on exercise | $ 0.82 | |
February 2021 | ||
Statement [Line Items] | ||
Number of options | 2,494,000 | |
Weighted average exercise price | $ 0.89 | |
Weighted average market share price on exercise | $ 0.53 | |
March 2021 | ||
Statement [Line Items] | ||
Number of options | 150,000 | |
Weighted average exercise price | $ 0.48 | |
Weighted average market share price on exercise | $ 0.89 | |
June 2021 | ||
Statement [Line Items] | ||
Number of options | 590,000 | |
Weighted average exercise price | $ 0.49 | |
Weighted average market share price on exercise | $ 0.64 | |
July 2021 | ||
Statement [Line Items] | ||
Number of options | 1,445,000 | |
Weighted average exercise price | $ 0.49 | |
Weighted average market share price on exercise | $ 0.58 |
CAPITAL AND RESERVES (Details 5
CAPITAL AND RESERVES (Details 5) - $ / shares | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Capital and Reserves | |||
Number of DSUs, Beginning Balance | 458,129 | 458,129 | |
Number of DSUs, Granted | 19,582 | 19,582 | |
Number of DSUs, Ending Balance | 477,711 | 477,711 | |
Weighted average fair value (DSUs), Beginning Balance | $ 0.69 | ||
Weighted average fair value (DSUs), Granted | $ 0.60 | 0.60 | |
Weighted average fair value (DSUs), Ending Balance | $ 0.69 | $ 0.69 |
CAPITAL AND RESERVES (Details 6
CAPITAL AND RESERVES (Details 6) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | |
Capital and Reserves | |||
Beginning balance | $ 29,661,000 | $ 29,661 | $ 32,365 |
Loss on translation of foreign subsidiaries | $ (903) | (2,704) | |
Ending Balance | $ 28,758,000 | $ 29,661 |
CAPITAL AND RESERVES (Details N
CAPITAL AND RESERVES (Details Narrative) $ / shares in Units, $ in Thousands | Aug. 06, 2020$ / sharesshares | Jul. 30, 2020$ / sharesshares | Jun. 30, 2021USD ($) | Jul. 31, 2020CAD ($)shares | Jul. 31, 2020USD ($)$ / sharesshares | May 31, 2020CAD ($)shares | May 31, 2020$ / sharesshares | Jan. 31, 2020CAD ($)shares | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CAD ($)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CAD ($) | Dec. 31, 2019$ / shares |
Statement [Line Items] | ||||||||||||||
Number of shares issued and fully paid | shares | 529,779,388 | 509,046,631 | 509,046,631 | |||||||||||
Aggregate market value, recognized | $ 12,000 | |||||||||||||
Proceeds from issuance of shares | 872,000 | $ 57,701,000 | ||||||||||||
Share-based compensation expense | 2,858,000 | 9,342,000 | ||||||||||||
Mission Gold | ||||||||||||||
Statement [Line Items] | ||||||||||||||
Warrants, weighted-averrage exercise price | $ / shares | $ 0.55 | |||||||||||||
Broker Warrants | ||||||||||||||
Statement [Line Items] | ||||||||||||||
Warrants, weighted-averrage exercise price | $ / shares | $ 0.41 | |||||||||||||
June, 2021 - ATM Agreement | ||||||||||||||
Statement [Line Items] | ||||||||||||||
Aggregate gross sales price | $ 14,500 | |||||||||||||
Number of shares issued | shares | 1,212,805 | |||||||||||||
Proceeds from issuance of shares | $ 688 | |||||||||||||
Agent fees | $ 17 | |||||||||||||
Transaction costs | 48,000 | |||||||||||||
Net proceeds from issuance of shares | $ 824,000 | |||||||||||||
Weighted average share price | $ / shares | $ 0.567 | |||||||||||||
July and August, 2021 - Underwritten Public Offering | ||||||||||||||
Statement [Line Items] | ||||||||||||||
Number of shares issued | shares | 24,150,000 | 24,150,000 | ||||||||||||
Proceeds from issuance of shares | $ 35,259 | |||||||||||||
Transaction costs | $ 3,038,000 | |||||||||||||
Net proceeds from issuance of shares | $ 44,600,000 | |||||||||||||
Weighted average share price | $ / shares | $ 1.46 | |||||||||||||
Cash commission, percentage | 5.00% | 5.00% | ||||||||||||
July and August, 2020 - Private Placement | ||||||||||||||
Statement [Line Items] | ||||||||||||||
Number of shares issued | shares | 100,000 | 5,807,534 | ||||||||||||
Proceeds from issuance of shares | $ 8,625 | |||||||||||||
Transaction costs | 106,000 | |||||||||||||
Net proceeds from issuance of shares | 11,573,000 | |||||||||||||
Weighted average share price | $ / shares | $ 1.46 | $ 1.46 | ||||||||||||
May, 2020 - Underwritten Public Offering | ||||||||||||||
Statement [Line Items] | ||||||||||||||
Number of shares issued | shares | 14,375,000 | 14,375,000 | ||||||||||||
Proceeds from issuance of shares | $ 10,063,000 | |||||||||||||
Transaction costs | 943,000 | |||||||||||||
Net proceeds from issuance of shares | $ 9,120,000 | |||||||||||||
Weighted average share price | $ / shares | $ 0.70 | |||||||||||||
Underwriter costs, percentage | 5.00% | 5.00% | ||||||||||||
May, 2020 - Private Placement | ||||||||||||||
Statement [Line Items] | ||||||||||||||
Number of shares issued | shares | 10,357,143 | 10,357,143 | ||||||||||||
Proceeds from issuance of shares | $ 7,250,000 | |||||||||||||
Transaction costs | 16,000 | |||||||||||||
Net proceeds from issuance of shares | $ 7,234,000 | |||||||||||||
Weighted average share price | $ / shares | $ 0.70 | |||||||||||||
Share Purchase Option Compensation Plan | ||||||||||||||
Statement [Line Items] | ||||||||||||||
Expected life | 4 years 11 months 23 days | 4 years 11 months 23 days | ||||||||||||
Options granted in period, weighted-average fair value per share | $ / shares | $ 1.58 | |||||||||||||
Risk-free rate | 0.35% | 0.35% | ||||||||||||
Expected volatility | 94.70% | 94.70% | ||||||||||||
Share price | $ / shares | $ 2.18 | |||||||||||||
Share-based compensation expense | $ 2,858,000 | $ 9,342,000 | ||||||||||||
Options outstanding, weighted-average contractual life | 2 years 4 months 10 days | 2 years 4 months 10 days | 2 years 7 months 2 days | 2 years 7 months 2 days | ||||||||||
Options exercisable, weighted-average contractual life | 2 years 4 months 9 days | 2 years 4 months 9 days | 2 years 3 months 29 days | 2 years 3 months 29 days | ||||||||||
Options exercisable, weighted-average exercise price | $ / shares | $ 1.45 | $ 1.10 | ||||||||||||
January, 2020 - Private Placement | ||||||||||||||
Statement [Line Items] | ||||||||||||||
Number of shares issued | shares | 13,688,823 | |||||||||||||
Proceeds from issuance of shares | $ 6,009,000 | $ 6,708,000 | $ 699,000 | |||||||||||
Transaction costs | 116,000 | 6,000 | ||||||||||||
Net proceeds from issuance of shares | $ 6,592,000 | $ 693,000 |
WARRANT LIABILITIES (Details Na
WARRANT LIABILITIES (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
Warrant Liabilities | |
Loss (gain) on revaluation of warrant liabilities | $ 204 |
Fair value transferred to share capital on exercise | $ 247 |
LOANS PAYABLE (Details Narrativ
LOANS PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2020 | Jan. 30, 2020 | Nov. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans Payable | |||||
Loans received | $ 183,000 | $ 2,317,000 | |||
Interest | $ 5,000 | $ 9,000 | |||
Interest paid | $ 5,000 | ||||
Share purchase warrants | 466,666 | ||||
Warrants issued | 153,333 | ||||
Warrant exercise price | $ 0.75 | ||||
Warrants exercised | 66,667 | 200,000 | |||
Warrants expired | 199,999 | ||||
Loans earned interest rate | 10.00% |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS (Details) | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) |
Statement [Line Items] | |||
Payables to related parties | $ 376,000 | $ 848,000 | $ 848,000 |
Pebble Services Inc. | |||
Statement [Line Items] | |||
Payables to related parties | 183,000 | ||
Key Management Personnel | |||
Statement [Line Items] | |||
Payables to related parties | 35,000 | 34,000 | |
Total loans including interest payable | |||
Statement [Line Items] | |||
Payables to related parties | 0 | $ 0 | |
Hunter Dickinson Services Inc. | |||
Statement [Line Items] | |||
Payables to related parties | $ 341,000 | 814,000 | |
Loans Payable | |||
Statement [Line Items] | |||
Payables to related parties | 971,000 | ||
Accrued Interest | |||
Statement [Line Items] | |||
Payables to related parties | 5,000 | ||
Repayment of Loans | |||
Statement [Line Items] | |||
Payables to related parties | (1,159,000) | ||
Additional Loans Provided | |||
Statement [Line Items] | |||
Payables to related parties | $ 183,000 |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS (Details 1) | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | |
Related Party Balances and Transactions | ||||
Amounts paid and payable to HDSI for services of KMP employed by HDSI | $ 2,882,000 | $ 2,408,000 | ||
Amounts paid and payable to KMP | 2,624,000 | 4,525,000 | ||
Bonuses paid to KMP | 0 | 1,216,000 | ||
Interest payable on loans received from KMP | 0 | 5,000 | ||
Compensation gross | 5,506,000 | 8,154,000 | ||
Share-based compensation | 1,854,000 | 6,207,000 | ||
Total compensation | 7,360,000 | 14,361,000 | ||
Engineering | 735,000 | 904,000 | ||
Environmental | 434,000 | 245,000 | ||
Socioeconomic | 285,000 | 486,000 | ||
Other technical services | 154,000 | 307,000 | ||
Services rendered by HDSI | 1,608,000 | 1,942,000 | ||
Management, corporate communications, secretarial, financial and administration | 3,029,000 | 3,011,000 | ||
Shareholder communication | 721,000 | 614,000 | ||
Total General and administrative | $ 3,750 | $ 3,625 | ||
Total for services rendered | 5,358,000 | 5,567,000 | ||
Conferences and travel | 49,000 | 119,000 | ||
Insurance | 71,000 | 53,000 | ||
Office supplies and information technology | 502,000 | 418,000 | ||
Total reimbursed | 622,000 | 590,000 | ||
Total value of transactions with HDSI | $ 5,980,000 | $ 6,157,000 |
RELATED PARTY BALANCES AND TR_5
RELATED PARTY BALANCES AND TRANSACTIONS (Details Narrative) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2020USD ($) | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2020CAD ($) | |
Statement [Line Items] | |||||
Repayment of loan | $ 1,150,000 | $ 2,523 | |||
Loan accrued | 5,000 | $ 9,000 | |||
Interst paid on loan | $ 9,000 | ||||
Offices expenses | $ 106,000 | 7,000 | |||
Description of agreement term | Company signed an office use agreement effective May 1, 2021, for a five-year term ending April 29, 2026. | Company signed an office use agreement effective May 1, 2021, for a five-year term ending April 29, 2026. | |||
Option for proceeds | $ 1,824,000 | $ 807,000 | |||
Undiscounted commitment | $ 431,000 | ||||
Annual salary | $ 1,418 | $ 3,038 | |||
Key Management Personnel | |||||
Statement [Line Items] | |||||
Number of options exercised | 3,717,000 | 3,717,000 | 1,440,000 | 1,440,000 | |
Exercise price | $ / shares | $ 0.49 | $ 0.56 | |||
Weighted average market price on exercise | $ / shares | $ 0.73 | $ 1.83 | |||
HDSI | |||||
Statement [Line Items] | |||||
Annual salary | $ 2,800 |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Trade and Other Payables | ||
Trade, current | $ 1,922,000 | $ 6,304,000 |
Lease liabilities, current | 126,000 | 259,000 |
Trade and other payables | 2,048,000 | 6,563,000 |
Trade, noncurrent | 804,000 | 0 |
Lease liabilities, noncurrent | 561,000 | 657,000 |
Total, noncurrent | $ 1,365,000 | $ 657,000 |
TRADE AND OTHER PAYABLES (Det_2
TRADE AND OTHER PAYABLES (Details 1) | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | |
Trade and Other Payables | ||||
Beginning balance | $ 916,000 | $ 1,220,000 | ||
Interest expense | 67,000 | 108,000 | ||
Effect of modification to lease term | (284,000) | 0 | ||
Lease payments | (267,000) | (402,000) | ||
Lease recognition | 268,000 | 0 | ||
Lease settlement | (5,000) | 0 | ||
Foreign currency translation difference | (8,000) | 0 | ||
Ending balance | 687,000 | 916,000 | ||
Current portion | 126,000 | 259,000 | ||
Non-current portion | $ 561 | $ 657 | ||
Total | $ 687,000 | $ 916,000 |
TRADE AND OTHER PAYABLES (Det_3
TRADE AND OTHER PAYABLES (Details 2) $ in Thousands | Dec. 31, 2021CAD ($) |
Trade and Other Payables | |
Less than one year | $ 190 |
One to five years | 550 |
Later than 5 years | 186 |
Total undiscounted lease liabilities | $ 926 |
TRADE AND OTHER PAYABLES (Det_4
TRADE AND OTHER PAYABLES (Details Narrative) $ in Thousands, $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Dec. 12, 2021 | Dec. 31, 2021CAD ($) | Jan. 01, 2021USD ($) | Dec. 31, 2020CAD ($) | |
Statement [Line Items] | ||||
Short-term lease commitments | $ 147 | $ 90 | $ 257 | |
Lease expense | 190 | $ 256 | ||
Legal fees | $ 635 | |||
Interest rates | 80.00% | |||
Up [Member] | ||||
Statement [Line Items] | ||||
Interest rates | 12.00% | |||
Lease terms | 101 years | |||
Bottom [Member] | ||||
Statement [Line Items] | ||||
Interest rates | 9.50% | |||
Lease terms | 12 years |
EXPLORATION AND EVALUATION AN_3
EXPLORATION AND EVALUATION AND GENERAL AND ADMINISTRATIVE EXPENSES (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pebble Services Inc. | ||
Statement [Line Items] | ||
Environmental | $ 2,237 | $ 11,782 |
Property fees | 1,150 | 2,104 |
Site activities | 2,089 | 3,438 |
Socio-economic | 2,403 | 10,451 |
Transportation | 523 | 1,919 |
Other activities and travel | 173 | 354 |
Total | 12,435 | 39,219 |
E & E | ||
Statement [Line Items] | ||
Engineering | $ 3,860 | $ 9,171 |
EXPLORATION AND EVALUATION AN_4
EXPLORATION AND EVALUATION AND GENERAL AND ADMINISTRATIVE EXPENSES (Details 1) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | ||
Insurance | $ 71 | $ 53 |
Shareholder communication | 721 | 614 |
G & A | ||
Statement [Line Items] | ||
Conference and travel | 131 | 179 |
Consulting | 1,902 | 2,346 |
Depreciation of right-of-use assets | 192 | 235 |
Insurance | 1,502 | 848 |
Office costs, including information technology | 815 | 1,132 |
Management and administration | 3,891 | 5,419 |
Shareholder communication | 1,309 | 1,039 |
Trust and filing | 249 | 347 |
Total | $ 9,991 | $ 11,545 |
EMPLOYMENT COSTS (Details)
EMPLOYMENT COSTS (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | |
Statement [Line Items] | ||||
Salaries and benefits | $ 1,418 | $ 3,038 | ||
Amounts paid for services by HDSI personnel (note 9(b)) | $ 2,764 | $ 2,817 | ||
Total General and administrative | 4,182 | 5,855 | ||
General and administrative | ||||
Share-based payments | 2,858 | 9,342 | ||
Total of Share Based Payments | 11,455 | 21,610 | ||
Pebble Services Inc. | ||||
Statement [Line Items] | ||||
Amounts paid for services by HDSI personnel (note 9(b)) | 1,508 | |||
Exploration and evaluation | ||||
Total Exploration and evaluation | 4,415 | |||
Hunter Dickinson Services Inc. | ||||
Statement [Line Items] | ||||
Salaries and benefits | $ 2,907 | $ 5,086 | ||
Amounts paid for services by HDSI personnel (note 9(b)) | 1,508 | 1,327 | ||
Exploration and evaluation | ||||
Total Exploration and evaluation | $ 4,415 | $ 6,413 |
BASIC AND DILUTED LOSS PER SH_3
BASIC AND DILUTED LOSS PER SHARE (Details) - CAD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive Loss | ||
Loss attributable to common shareholders | $ 31,542 | $ 63,872 |
Weighted average number of common shares outstanding | 521,459 | 473,668 |
BASIC AND DILUTED LOSS PER SH_4
BASIC AND DILUTED LOSS PER SHARE (Details Narrative) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Share Purchase Options | ||
Statement [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted loss per share | 20,825,500 | 28,481,500 |
Non-Employee Share Purchase Options | ||
Statement [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted loss per share | 94,000 | 17,924,765 |
Deferred Share Units | ||
Statement [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted loss per share | 477,711 | 458,129 |
INCOME TAX (Details)
INCOME TAX (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | |
Income Tax | |||
Net loss | $ (31,542,000) | $ (63,872) | |
Total income tax (recovery) expense | 0 | $ 0 | |
Loss excluding income tax | 31,542,000 | (63,872,000) | |
Income tax recovery using the Company's domestic tax rate | (8,516,000) | (17,245,000) | |
Non-deductible expenses and other | 764,000 | 1,393,000 | |
Change in tax rates | 0 | 0 | |
Deferred income tax assets not recognized | 7,752,000 | 15,852,000 | |
Deferred income tax (recovery) expense | $ 0 | $ 0 |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax | ||
Tax losses | $ 2,451,000 | $ 2,421,000 |
Net deferred income tax assets | 2,451,000 | 2,421,000 |
Resource property/investment in Pebble Partnership | (2,451,000) | (2,421,000) |
Equipment | 0 | 0 |
Net deferred income tax liability | $ 0 | $ 0 |
INCOME TAX (Details 2)
INCOME TAX (Details 2) | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Pebble Services Inc. | |
Statement [Line Items] | |
Tax losses | $ 331,249,000 |
Resource pools | 92,812,000 |
Other | 5,145,000 |
Within one year | |
Statement [Line Items] | |
Tax losses | 0 |
Resource pools | 0 |
Other | 0 |
One to Five Years | |
Statement [Line Items] | |
Tax losses | 0 |
Resource pools | 0 |
Other | 4,955,000 |
After Five Years | |
Statement [Line Items] | |
Tax losses | 297,507,000 |
Resource pools | 0 |
Other | 0 |
No Expiry Date | |
Statement [Line Items] | |
Tax losses | 33,742,000 |
Resource pools | 92,812,000 |
Other | $ 190,000 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax | ||
Domestic tax rate, percent | 27.00% | 27.00% |
Investments in foreign subsidiaries | $ 8.6 | $ 8.5 |
FINANCIAL RISK MANAGEMENT (Deta
FINANCIAL RISK MANAGEMENT (Details) $ in Thousands | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) |
Statement [Line Items] | ||||
Restricted cash | $ 785,000 | $ 791,000 | ||
Cash and cash equivalents | 22,291,000 | 42,460,000 | $ 14,038,000 | |
Non-current trade payables | 1,365,000 | 657,000 | ||
Current trade and other payables | 2,048,000 | 6,563,000 | ||
Payables to related parties | 376,000 | 848,000 | $ 848 | |
Credit risk | ||||
Statement [Line Items] | ||||
Amounts receivable | 85,000 | 587,000 | ||
Restricted cash | 785,000 | 791,000 | ||
Cash and cash equivalents | 22,291,000 | 42,460,000 | ||
Total exposure | 23,161,000 | 43,838,000 | ||
Foreign Exchange Risk | ||||
Statement [Line Items] | ||||
Amounts receivable | 168,000 | 649,000 | ||
Cash and cash equivalents and restricted cash | 5,433,000 | 23,624,000 | ||
Total Financial assets | 5,601,000 | 24,273,000 | ||
Non-current trade payables | (1,365,000) | (657,000) | ||
Current trade and other payables | (1,670,000) | (6,170,000) | ||
Payables to related parties | (190,000) | (650,000) | ||
Total Financial liabilities | (3,225,000) | (7,477,000) | ||
Net financial assets exposed to foreign currency risk | $ 2,376,000 | $ 16,796,000 |
FINANCIAL RISK MANAGEMENT (De_2
FINANCIAL RISK MANAGEMENT (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | |
Financial Risk Management | |||
Foreign exchange risk, percent | 10.00% | 10.00% | 10.00% |
Increase or decrease in interest rates | 1.00% | 1.00% | 1.00% |
Expected gain (loss) on foreign exchange movement | $ 238 | $ 1,680 | |
Decrease or increase in loss | $ 324 | $ 282 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2021CAD ($) |
Statement [Line Items] | |
Less than one year | $ 190 |
One to five years | 550 |
Commitments And Contingencies | |
Statement [Line Items] | |
Less than one year | 95 |
One to five years | 336 |
Total commitment | $ 431 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - 12 months ended Dec. 31, 2021 | CAD ($) | USD ($) |
Statement [Line Items] | ||
Short-term lease commitment | $ 50,000 | |
Net profits royalty interest | 3.00% | 3.00% |
Aggregate annual payment | $ 3,000,000 | |
Undiscounted commitment | $ 431,000 | |
Pebble Services Inc. | ||
Statement [Line Items] | ||
Undiscounted commitment | $ 431,000 | |
Pipeline Right Of Way Bond Commitment | ||
Statement [Line Items] | ||
Bond | $ 300 | |
Office Use Commitment | ||
Statement [Line Items] | ||
Agreement end date | April 29, 2026 | April 29, 2026 |
Uncategorized Items - _IXDS
Label | Element | Value |
Pebble Services Inc. | ||
[Profit (loss)] | ifrs-full_ProfitLoss | $ (63,872) |