Cover
Cover | 3 Months Ended |
Nov. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Nov. 30, 2021 |
Current Fiscal Year End Date | --08-31 |
Entity File Number | 001-32500 |
Entity Registrant Name | TANZANIAN GOLD CORPORATION |
Entity Central Index Key | 0001173643 |
Entity Address, Address Line One | 150 King Street West |
Entity Address, Address Line Two | Suite 200 |
Entity Address, Address Line Three | Toronto |
Entity Address, City or Town | Ontario |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M5H 1J9 |
Unaudited Interim Condensed Con
Unaudited Interim Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Current Assets | ||
Cash (Note 5) | $ 7,929 | $ 13,447 |
Amounts receivable (Note 6) | 502 | 460 |
Prepaid and other assets (Note 7) | 150 | 332 |
Inventory (Note 8) | 1,517 | 1,179 |
Current assets | 10,098 | 15,418 |
Mineral property, plant and equipment (Note 9) | 43,870 | 2,482 |
Exploration and evaluation assets and expenditures (Note 10) | 38,618 | |
Assets | 53,968 | 56,518 |
Current Liabilities | ||
Trade, other payables and accrued liabilities (Note 11, 17) | 3,967 | 5,263 |
Derivative warrant liabilities (Note 12) | 1,941 | 2,149 |
Current liabilities | 5,908 | 7,412 |
Asset Retirement Obligation | 2,715 | 2,681 |
Liabilities | 8,623 | 10,093 |
Shareholders’ equity | ||
Share capital (Note 13) | 158,227 | 158,129 |
Share based payment reserve (Note 14) | 6,660 | 5,680 |
Warrants reserve (Note 15) | 1,606 | 1,606 |
Accumulated deficit | (119,479) | (117,457) |
Equity attributable to owners of the Company | 47,014 | 47,958 |
Non-controlling interests (Note 16) | (1,669) | (1,533) |
Total shareholders’ equity | 45,345 | 46,425 |
Total Shareholders’ Equity and Liabilities | $ 53,968 | $ 56,518 |
Unaudited Interim Condensed C_2
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Administrative expenses | ||
General and administrative expense (Note 18) | $ 2,345 | $ 1,173 |
Administrative expenses | (2,345) | (1,173) |
Other income (expenses) | ||
Financial instrument related cost and other (Note 19) | 174 | (508) |
Foreign exchange | 18 | 17 |
Interest, net | (5) | 30 |
Other expense | (1) | |
Net loss and comprehensive loss | (2,158) | (1,635) |
Loss and comprehensive loss attributable to: | ||
Parent | (2,022) | (1,115) |
Non-controlling interests | (136) | (520) |
Net loss | $ (2,158) | $ (1,635) |
Loss per share – basic and diluted attributable to Parent | $ (0.01) | $ (0.01) |
Weighted average number of shares outstanding | 254,983,579 | 200,611,435 |
Unaudited Interim Condensed C_3
Unaudited Interim Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Issued capital [member] | Reserve of share-based payments [member] | Reserve For Warrants [Member] | Accumulated other comprehensive income [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] | Total |
Beginning balance, value at Aug. 31, 2020 | $ 135,100 | $ 2,748 | $ 728 | $ (113,453) | $ 25,123 | $ (254) | $ 24,869 |
Balance, number (in shares) at Aug. 31, 2020 | 199,975,122 | ||||||
IfrsStatementLineItems [Line Items] | |||||||
Issued for settlement of convertible debentures | $ 1,058 | 1,058 | 1,058 | ||||
Issued for settlement of convertible debentures (In Shares) | 1,832,418 | ||||||
Net loss for the period | (1,115) | (1,115) | (520) | (1,635) | |||
Ending balance, value at Nov. 30, 2020 | $ 136,158 | 2,748 | 728 | (114,568) | 25,066 | (774) | 24,292 |
Balance, number (in shares) at Nov. 30, 2020 | 201,807,540 | ||||||
IfrsStatementLineItems [Line Items] | |||||||
Issued for cash, net of share issue costs | $ 23,226 | 23,226 | 23,226 | ||||
Issued for cash, net of share issue costs (In Shares) | 38,477,666 | ||||||
Warrants issued (Note 13) | $ (8,710) | 878 | (7,832) | (7,832) | |||
Share based compensation - common shares | 2,933 | 2,933 | 2,933 | ||||
Issued for settlement of convertible debentures | $ 5,957 | 5,957 | 5,957 | ||||
Issued for settlement of convertible debentures (In Shares) | 10,318,029 | ||||||
Shares issued for settlement of debts related to convertible and gold loans | $ 1,497 | 1,497 | 1,497 | ||||
Shares issued for settlement of debts related to convertible and gold loans (In Shares) | 4,266,321 | ||||||
Options exercised (Note 13) | |||||||
Options exercised (Note 13) (In Shares) | 1,000 | ||||||
Transfer of reserve on exercise of options | $ 1 | (1) | |||||
Net loss for the period | (2,889) | (2,889) | (759) | (3,648) | |||
Ending balance, value at Aug. 31, 2021 | $ 158,129 | 5,680 | 1,606 | (117,457) | 47,958 | (1,533) | 46,425 |
Balance, number (in shares) at Aug. 31, 2021 | 254,870,556 | ||||||
IfrsStatementLineItems [Line Items] | |||||||
Shares issued for settlement of debts | $ 98 | 98 | 98 | ||||
Shares issued for settlement of debts (In Shares) | 165,889 | ||||||
Share based compensation - common shares | 980 | 980 | 980 | ||||
Net loss for the period | (2,022) | (2,022) | (136) | (2,158) | |||
Ending balance, value at Nov. 30, 2021 | $ 158,227 | $ 6,660 | $ 1,606 | $ (119,479) | $ 47,014 | $ (1,669) | $ 45,345 |
Balance, number (in shares) at Nov. 30, 2021 | 255,036,445 |
Unaudited Interim Condensed C_4
Unaudited Interim Condensed Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Operating | ||
Net loss | $ (2,158) | $ (1,635) |
Adjustments to reconcile net loss to cash flow from operating activities: | ||
Non-cash items (Note 24) | 887 | 501 |
Net change in non-cash operating working capital items: | ||
Amounts receivable | (42) | (197) |
Inventory | (338) | (210) |
Prepaid and other assets | 182 | 14 |
Trade, other payables and accrued liabilities | (1,486) | (223) |
Cash used in operating activities | (2,955) | (1,750) |
Investing | ||
Exploration and evaluation assets and expenditures | (2,192) | (1,850) |
Proceeds from gold sales | 535 | 677 |
Purchase of mineral property, plant and equipment | (906) | (43) |
Cash used in investing activities | (2,563) | (1,216) |
Financing | ||
Repayment of leases | (27) | |
Proceeds from issuance of convertible debentures | 1,000 | |
Cash provided by financing activities | 973 | |
Net decrease in cash | (5,518) | (1,993) |
Cash, beginning of period | 13,447 | 4,053 |
Cash, end of period | 7,929 | 2,060 |
Non-cash transactions: | ||
Value of shares issued on conversion of debentures | 1,058 | |
Value of shares issued on settlement of debt | $ 98 |
Nature of Operations and Going
Nature of Operations and Going Concern | 3 Months Ended |
Nov. 30, 2021 | |
Nature Of Operations And Going Concern | |
Nature of Operations and Going Concern | 1. Nature of Operations and Going Concern The Company was originally incorporated under the corporate name “ 424547 Alberta Ltd Business Corporations Act (“TanGold”, “Group” or the “Company”) 400 3 rd The Company’s common shares are listed on the Toronto Stock Exchange in Canada and New York Stock Exchange American in the United States of America. The Company is in the process of exploring, developing, and evaluating its mineral properties. The business of exploring and mining for minerals involves a high degree of risk. The underlying value of the mineral properties is dependent upon the existence and economic recovery of mineral resources and reserves, the ability to raise long-term financing to complete the development of the properties, government policies and regulations, and upon future profitable production or, alternatively, upon the Company’s ability to dispose of its interest on an advantageous basis; all of which are uncertain. The amounts shown as exploration and evaluation assets and expenditures (“E&E assets”) represent costs incurred to date, less amounts amortized and/or written off, and do not necessarily represent present or future values. The underlying value of the E&E assets is entirely dependent on the existence of economically recoverable reserves, securing and maintaining title and beneficial interest, the ability of the Company to obtain the necessary financing to complete development, and future profitable production. The Company reviews its going concern status, via comparisons to budgets, cash flow forecasts, and access to further financing. At the balance sheet date, the Company had $ 7.9 These unaudited interim condensed consolidated financial statements do not give effect to any adjustment which would be necessary should the Company be unable to continue as a going concern and, therefore, be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the unaudited interim condensed consolidated financial statements and such adjustments may be material. |
Basis of Preparation and Signif
Basis of Preparation and Significant Accounting Policies | 3 Months Ended |
Nov. 30, 2021 | |
Basis Of Preparation And Significant Accounting Policies | |
Basis of Preparation and Significant Accounting Policies | 2. Basis of Preparation and Significant Accounting Policies i) Basis of presentation and measurement The unaudited condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and Interpretations of the International Financial Reporting Interpretations Committee which the Canadian Accounting Standards Board has approved for incorporation into Part 1 of the CPA Canada Handbook - Accounting including IAS 34 Interim financial reporting. The condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended August 31, 2021. The consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments which have been measured at fair value. During the year ended August 31, 2021, the Company changed its presentation currency from the Canadian dollar to the US dollar. The Company believes that the change in presentation currency will provide shareholders with a better reflection of the Company’s business activities and enhance the comparability of the Company’s financial information to its peers. For more details, see Note 4 of these unaudited interim condensed consolidated financial statements. Reference herein of $ or USD is to US dollars, C$ or CAD is to Canadian dollars. Balance sheet items are classified as current if receipt or payment is due within twelve months. Otherwise, they are presented as non-current. These condensed interim consolidated financial statements were approved by the Board of Directors for issue on January 14, 2022. ii) Significant accounting policies The accounting policies applied in these condensed interim consolidated financial statements are consistent with those applied in the preparation of the Company’s annual consolidated financial statements for the year ended August 31, 2021 except as noted below. Mineral properties – Construction in progress All expenditures undertaken in the development, construction, installation and/or completion of mine production facilities to extract, treat, gather, transport and store of minerals are capitalized and initially classed as “Construction in progress”. All expenditures related to the construction of mine and obtain access to the orebody are considered to be capital development and are capitalized. Expenses incurred after reaching the orebody are regards as operating development costs and are included in the cost of ore hoisted. Upon the commencement of commercial production, all related assets included in “Construction in progress” are reclassified to “Mineral properties” or “Property, plant and equipment”. Determination of commencement of commercial production is a complex process and requires significant assumptions and estimates. The commencement of commercial production is defined as the date when the mine is capable of operating in the manner intended by management. The Company considers primarily the following factors, among others, when determining the commencement of commercial production: · All major capital expenditures to achieve a consistent level of production and desired capacity have been incurred; · A reasonable period of testing of the mine plant and equipment has been completed; · A predetermined percentage of design capacity of the mine and mill has been reached; and · Required production levels, grades and recoveries have been achieved. iii) New accounting pronouncements In 2020, the IASB issued amendments to IAS 16, Property Plant and Equipment In May 2021, the IASB issued amendments to IAS 12, Income Taxes |
Significant Accounting Judgment
Significant Accounting Judgments, Estimates and Assumptions | 3 Months Ended |
Nov. 30, 2021 | |
Significant Accounting Judgments Estimates And Assumptions | |
Significant Accounting Judgments, Estimates and Assumptions | 3. Significant Accounting Judgments, Estimates and Assumptions The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and expenses. Estimates and judgments are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The following discusses the most significant accounting policy judgments and accounting estimates that the Company has made in the preparation of the financial statements that could result in a material effect during the current reporting period on the carrying amounts of assets and liabilities: Accounting Policy Judgements The Company made the following critical judgements in applying its accounting policies during the three months ended November 30, 2021: 1) Exploration and Evaluation Assets and Expenditures The application of the Company’s accounting policy for exploration and evaluation assets and expenditures requires judgment to determine whether future economic benefits are likely, from either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable assessment of the existence of reserves, and to determine whether indicators of impairment exist including factors such as, the period for which the Company has the right to explore, expected renewals of exploration rights, whether substantive expenditures on further exploration and evaluation of resource properties are budgeted and evaluation of the results of exploration and evaluation activities up to the reporting date. 2) Determination of Commercial Viability and Technical Feasibility of the Buckreef Gold Project The application of the Company’s accounting policy for mineral property development costs required judgment to determine when technical feasibility and commercial viability of the Buckreef Gold Project was demonstrable. The Company considered the positive NI 43-101 compliant Preliminary Feasibility Study (“PFS”) published in 2018, updated resource in 2020, the results from the 120 tonnes per day “tpd” oxide processing plant constructed for testing purposes which led to a decision to construct a 1,000+ tpd processing plant announced with an expectation of generating a positive long-term return on the Buckreef Gold Project based on a positive Net Present Value generated from a discounted cash flow model. Estimates and Assumptions The preparation of condensed consolidated interim financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities as at the date of the condensed consolidated interim financial statements and the reported amount of revenues and expenses for the reporting period. The main sources of estimation uncertainty and critical judgments by management applicable to these condensed consolidated interim financial statements are the same as those presented in the Company’s consolidated financial statements for the year ended August 31, 2021. 1) Exploration and Evaluation Assets and Expenditures As noted above, during the three months ended November 30, 2021, with the construction decision from the Board of Directors, the Buckreef Gold Project transitioned from an exploration and evaluation asset under IFRS 6 to mineral property, plant and equipment under IAS 16. At the time of the transition from exploration and evaluation to mineral property, plant and equipment, the Company completed an impairment test as required by IFRS 6. The impairment test compared the carrying amount of the Buckreef Gold Project to its recoverable amount. The recoverable amount is higher of the value in use and the fair value less costs of disposal. The Company estimated the recoverable amount using the discounted cash flow model as noted above. The significant assumptions that impacted the resulting fair value include future gold prices, capital cost estimates, operating cost estimates, estimated reserves and resources and the discount rate. Upon completion of the impairment tests, the Company concluded that there was no impairment. 2) COVID-19 While there has been increased economic optimism in the early part of 2021 as the global economy continued to show signs of recovery from the impacts of the COVID-19 pandemic, current market conditions may result in additional uncertainties, risks and complexities in management’s determination of the estimates and assumptions used to prepare the Company’s financial results. As the COVID-19 pandemic continues, management cannot reasonably estimate the length or severity of the impact on the Company. As such, actual results may differ from estimates and the effect of such differences may be material. |
Change in Presentation Currency
Change in Presentation Currency | 3 Months Ended |
Nov. 30, 2021 | |
Change In Presentation Currency | |
Change in Presentation Currency | 4. Change in Presentation Currency Effective September 1, 2020, the Company changed its presentation currency to US dollars from CAD dollars. The Company believes that the change in presentation currency will provide shareholders with a better reflection of the Company’s business activities and enhance the comparability of the Company’s financial information to peers. The change in presentation currency represents a voluntary change in accounting policy, which is accounted for retrospectively. The unaudited interim condensed consolidated financial statements for all periods presented have been translated into the new presentation currency in accordance with IAS 21 – The Effects of Changes in Foreign Exchange Rates. The unaudited interim condensed consolidated financial statements of comprehensive loss and the unaudited interim condensed consolidated statements of cash flows have been translated into the presentation currency using the average exchange rates prevailing during each reporting period. In the unaudited interim condensed consolidated statements of financial position, all assets and liabilities have been translated using the period end exchange rates, and all resulting exchange differences have been recognized in accumulated deficit. Asset and liability amounts previously reported in Canadian dollars have been translated into US dollars as at November 30, 2020, using the period end exchange rates of 1.2977 CAD/USD, and shareholders’ equity balances have been translated using historical rates in effect on the date of the transactions. The change in presentation currency resulted in the following impact on the November 30, 2020 unaudited interim condensed consolidated statement of financial position: Schedule of change in presentation currency As at November 30, 2020 Reported at Presentation Restated at Consolidated statement of financial position Cash 2,673 (613 ) 2,060 Other current assets 2,263 (519 ) 1,744 Non-current assets 44,054 (10,106 ) 33,948 Total assets 48,990 (11,238 ) 37,752 Current liabilities (13,933 ) 3,197 (10,736 ) Long term debt (3,535 ) 811 (2,724 ) Total liabilities (17,468 ) 4,008 (13,460 ) Share capital 179,766 (43,608 ) 136,158 Reserves 4,482 (1,006 ) 3,476 Accumulated deficit and other comprehensive income (151,680 ) 37,112 (114,568 ) Non-controlling interests (1,046 ) 272 (774 ) Total shareholders’ equity 31,521 (7,230 ) 24,292 The change in presentation currency resulted in the following impact on the November 30, 2020 unaudited interim condensed consolidated statement of comprehensive loss: Schedule of consolidated statement of comprehensive loss Reported at Presentation Restated at General and administrative expense (1,544 ) 371 (1,173 ) Other income (expense) (480 ) 18 (462 ) Net loss and comprehensive loss (2,024 ) 389 (1,635 ) Earnings per share – basic and diluted (0.01 ) - (0.01 ) The change in presentation currency resulted in the following impact on the November 30, 2020 unaudited interim condensed consolidated statement of cash flows: Schedule of consolidated statement of cash flows Reported at Presentation Restated at Cash used in operating activities (2,276 ) 526 (1,750 ) Cash used in investing activities (1,617 ) 401 (1,216 ) Cash provided by financing activities 1,272 (299 ) 973 Net decrease in cash (2,621 ) 628 (1,993 ) Cash beginning of period 5,294 (1,241 ) 4,053 Cash end of period 2,673 (613 ) 2,060 |
Cash
Cash | 3 Months Ended |
Nov. 30, 2021 | |
Cash | |
Cash | 5. Cash As at November 30, 2021, cash totalled $ 7.9 13.4 |
Amounts receivable
Amounts receivable | 3 Months Ended |
Nov. 30, 2021 | |
Amounts receivable | 6. Amounts receivable The Company’s amounts receivable arise from two main sources: receivables due from related parties, harmonized services tax (“HST”) and value added tax (“VAT”) receivable from government taxation authorities. These are broken down as follows: Schedule of Summary of Receivables November 30, 2021 August 31, 2021 HST and VAT receivable $ 458 $ 432 Other 44 28 Amounts Receivable $ 502 $ 460 Below is an aged analysis of the Company’s amounts receivable: Schedule of Aged analysis of Receivables November 30, 2021 August 31, 2021 Less than 1 month $ 23 $ 23 1 to 3 months 43 43 Over 3 months 436 394 Total Amounts Receivable $ 502 $ 460 At November 30, 2021, the Company anticipates full recovery of these amounts and therefore no impairment has been recorded against these receivables. The credit risk on the receivables has been further discussed in Note 21. The Company holds no collateral for any receivable amounts outstanding as at November 30, 2021. |
Prepaid and other assets
Prepaid and other assets | 3 Months Ended |
Nov. 30, 2021 | |
Prepaid and other assets | 7. Prepaid and other assets Schedule of Prepaid and Other Assets November 30, 2021 August 31, 2021 Insurance $ 110 $ 54 Listing fees 8 32 Drilling - 200 Legal retainers and other 32 46 Total Prepaid Expenses $ 150 $ 332 |
Inventory
Inventory | 3 Months Ended |
Nov. 30, 2021 | |
Inventory | 8. Inventory Inventory consists of stockpiled ore, work in progress and supplies consumed during the course of exploration development and operations. Cost represents the delivered price of the item. The following is a breakdown of items in inventory: Schedule of Inventory November 30, 2021 August 31, 2021 Stockpiled ore $ 891 $ 712 Work in progress 470 350 Supplies 156 117 Total Inventory $ 1,517 $ 1,179 |
Mineral property, plant and equ
Mineral property, plant and equipment | 3 Months Ended |
Nov. 30, 2021 | |
Mineral Property Plant And Equipment | |
Mineral property, plant and equipment | 9. Mineral property, plant and equipment Schedule of continuity of expenditures on mineral properties Construction Processing Machinery Other Total Cost As at September 1, 2020 $ - $ 2,657 $ 1,220 $ 161 $ 4,038 Additions - 622 437 - 1,059 Disposals - - (703 ) (79 ) (782 ) As at August 31, 2021 $ - $ 3,279 $ 954 $ 82 $ 4,315 Additions - 802 85 19 906 Transfer from E&E assets 40,563 - - - 40,563 As at November 30, 2021 $ 40,563 $ 4,081 $ 1,039 $ 101 $ 45,784 Accumulated depreciation As at September 1, 2020 $ - $ 1,212 $ 1,015 $ 73 $ 2,300 Depreciation expense - 128 144 14 286 Disposals - - (686 ) (67 ) (753 ) As at August 31, 2021 $ - $ 1,340 $ 473 $ 20 $ 1,833 Depreciation expense - 30 49 2 81 As at November 30, 2021 $ - $ 1,370 $ 522 $ 22 $ 1,914 Net book value As at August 31, 2021 $ - $ 1,939 $ 481 $ 62 $ 2,482 As at November 30, 2021 $ 40,563 $ 2,711 $ 517 $ 79 $ 43,870 No depreciation or depletion has been recorded for the Construction in progress assets as they are not ready for use as intended by management. |
Exploration and evaluation asse
Exploration and evaluation assets and expenditures | 3 Months Ended |
Nov. 30, 2021 | |
Exploration and evaluation assets and expenditures | 10. Exploration and evaluation assets and expenditures The Company explores or acquires gold or other precious metal concessions through its own efforts or through the efforts of its subsidiaries. All of the Company’s concessions are located in Tanzania. The continuity of expenditures on mineral properties is as follows: Schedule of continuity of expenditures on mineral properties Buckreef Balance, August 31, 2020 $ 30,997 Exploration expenditures: Camp, field supplies and travel 356 License fees and exploration and field overhead 2,809 Geological consulting and field wages 3,150 Trenching and drilling 605 Mine design 1,321 Mining and processing costs 987 Change in estimate of asset retirement obligation (133 ) Gold sales (2,524 ) Payments to STAMICO as per Joint Venture agreement 1,050 Balance, August 31, 2021 $ 38,618 Exploration expenditures: Camp, field supplies and travel 172 License fees and exploration and field overhead 861 Geological consulting and field wages 67 Trenching and drilling 550 Mine design 227 Mining and processing costs 431 Gold sales (535 ) Payments to STAMICO as per Joint Venture agreement 172 Balance, November 30, 2021 $ 40,563 Reclassification to mineral property, plant and equipment (40,563 ) Balance, November 30, 2021 $ - Buckreef Gold Project: At the time of the transition from exploration and evaluation to mineral property, plant and equipment, the Company completed an impairment test as required by IFRS 6. The impairment test compared the carrying amount of the Buckreef Gold Project to its recoverable amount. The recoverable amount is the higher of the value in use and the fair value less costs of disposal. The Company estimated the recoverable amount using the discounted cash flow model as noted above. The significant assumptions that impacted the resulting fair value include future gold prices, capital cost estimates, operating cost estimates, estimated reserves and resources and the discount rate. Upon completion of the impairment tests, the Company concluded that there was no impairment. |
Trade, other payables and accru
Trade, other payables and accrued liabilities | 3 Months Ended |
Nov. 30, 2021 | |
Trade, other payables and accrued liabilities | 11. Trade, other payables and accrued liabilities Trade and other payables of the Company are principally comprised of amounts outstanding for trade purchases relating to exploration activities and payroll liabilities. The usual credit period taken for trade purchases is between 30 to 90 days. The following is an aged analysis of the trade, other payables and accrued liabilities: Schedule of Aged analysis of Trade, Other Payables and Accrued Liabilities November 30, 2021 August 31, 2021 Less than 1 month $ 637 $ 2,161 1 to 3 months 1,533 119 Over 3 months 1,797 2,983 Total Trade, Other Payables and Accrued Liabilities $ 3,967 $ 5,263 |
Derivative warrant liabilities
Derivative warrant liabilities | 3 Months Ended |
Nov. 30, 2021 | |
Derivative Warrant Liabilities | |
Derivative warrant liabilities | 12. Derivative warrant liabilities Private Placement Warrants: During the year ended August 31, 2021, the Company issued warrants for the Company’s common shares pursuant to a financing in December 2020 and February 2021 (Note 15). No warrants were exercised during the period. The balance of the derivative warrant liabilities (level 3) is as follows: Schedule of derivative warrant liabilities August 31, 2021 Balance at August 31, 2020 $ 551 Warrants issued February 11, 2021 (Note 15) 7,830 Fair value adjustment (6,232 ) Balance at August 31, 2021 $ 2,149 Fair value adjustment (208 ) Balance at November 30, 2021 $ 1,941 Derivative warrant liabilities of $ 1.9 Significant assumptions used in determining the fair value of the derivative warrant liabilities are as follows: Schedule of assumptions fair value of derivative warrant liabilities November 30, 2021 August 31, 2021 Share price $ 0.41 0.41 Risk-free interest rate 0.42 - 1.01 0.19 - 0.67 Dividend yield 0 0 Expected volatility 60 60 - 70 Remaining term (in years) 1.7 – 4.2 1.9 – 4.4 The fair value is classified as level 3 as expected volatility is determined using historical volatility and is therefore not an observable input. |
Share capital
Share capital | 3 Months Ended |
Nov. 30, 2021 | |
Share capital | 13. Share capital The Company’s Restated Articles of Incorporation authorize the Company to issue an unlimited number of common shares. Schedule of Share Capital Activity Number of $ (000’s) Balance at August 31, 2020 199,975,122 $ 135,100 Issued for cash, net of share issue costs 38,477,666 23,226 Warrants issued - (8,710 ) Issued for settlement of convertible debentures 12,150,447 7,015 Issued for settlement of debts related to convertible and gold loans 4,266,321 1,497 Options exercised 1,000 - Transfer of reserve on exercise of options - 1 Balance at August 31, 2021 254,870,556 $ 158,129 Issued for settlement of outstanding fees 165,889 98 Balance at November 30, 2021 255,036,445 $ 158,227 Activity during the three-month period ended November 30, 2021: On September 30, 2021, the Company issued 165,889 98 98 Activity during the year ended August 31, 2021: On February 11, 2021, the Company completed the sale of 32,923,078 16,461,539 21.4 The common shares and warrants were issued at $0.65 for each common share and a purchase warrant with the right of each whole warrant to purchase one common share at $0.80 for a period of five years from the issue date. The Company also issued 1,152,307 broker warrants with the same terms and incurred commission and other costs of $1.8 million out of which $0.7 million was allocated to the warrants issued in the unit and expensed in the statement of comprehensive loss. On December 23, 2020, the Company completed the sale of 5,554,588 2,777,268 3.0 0.54 1.50 During the year ended August 31, 2021 $ 7.0 12,150,447 7.0 |
Share based payment reserve
Share based payment reserve | 3 Months Ended |
Nov. 30, 2021 | |
Share based payment reserve | 14. Share based payment reserve Schedule of reserve for share based payments Period/year ended November 30, 2021 August 31, Balance at beginning of period/year $ 5,680 $ 2,748 Share based compensation – Common shares (Note 17) 980 2,933 Transfer of reserve on exercise of options - (1 ) Balance at end of period/year $ 6,660 $ 5,680 Omnibus Equity Incentive Plan Effective June 26, 2019, the Company adopted the Omnibus Equity Incentive Plan dated June 26, 2019 (the “Omnibus Plan”), which Omnibus Plan was approved by the shareholders at a meeting held on August 16, 2019. The purposes of the Omnibus Plan are: (a) to advance the interests of the Company by enhancing the ability of the Company and its subsidiaries to attract, motivate and retain employees, officers, directors, and consultants, which either of directors or officers may be consultants or employees; (b) to reward such persons for their sustained contributions; and (c) to encourage such persons to take into account the long-term corporate performance of the Company. The Omnibus Plan provides for the grant of options, restricted share units, deferred share units and performance share units (collectively, the “Omnibus Plan Awards”), all of which are described in detail in the Form 20-F Annual Report for the year ended August 31, 2021. The Omnibus Plan provides for the grant of other share-based awards to participants (“Other Share-Based Awards”), which awards would include the grant of common shares. All Other Share-Based Awards will be granted by an agreement evidencing the Other Share-Based Awards granted under the Omnibus Plan. Subject to adjustments as provided for under the Omnibus Plan, the maximum number of shares issuable pursuant to Omnibus Plan Awards outstanding at any time under the Omnibus Plan shall not exceed 10% of the aggregate number of common shares outstanding from time to time on a non-diluted basis; provided that the acquisition of common shares by the Company for cancellation shall not constitute non-compliance with the Omnibus Plan for any Omnibus Plan Awards outstanding prior to such purchase of common shares for cancellation. As at November 30, 2021, the Company had 12,529,645 12,513,055 The continuity of outstanding stock options for the three-month period ended November 30, 2021 and year ended August 31, 2021 is as follows: Schedule of continuity of outstanding stock options Number of Weighted average Balance – August 31, 2020 7,352,000 CAD $ 0.41 Options exercised (1,000 ) CAD $ 0.40 Balance – August 31, 2021 and November 30, 2021 7,351,000 CAD $ 0.41 Options to purchase common shares carry exercise prices and terms to maturity as follows: Schedule of Options to purchase common shares carry exercise prices and terms to maturity Remaining Exercise price (1) Number of options Expiry contractual Outstanding $ Outstanding Exercisable Date life (years) (1) CAD $ 0.40 3,719,000 3,719,000 September 29, 2026 4.8 CAD $ 0.43 3,532,000 3,532,000 October 11, 2026 4.9 CAD $ 0.35 100,000 100,000 January 2, 2028 6.1 CAD $ 0.41 7,351,000 7,351,000 4.9 (1) Total represents weighted average. |
Warrants reserve
Warrants reserve | 3 Months Ended |
Nov. 30, 2021 | |
Warrants reserve | 15. Warrants reserve Warrant issuances: Activity during the three-month period ended November 30, 2021: There were no warrant issuances during the three-month period ended November 30, 2021. Activity during the year ended August 31, 2021: During the year ended August 31, 2021, the Company issued 2,777,268 three-year warrants with an exercise price of $ 1.50 16,461,539 five-year warrants with an exercise price of $ 0.80 The 2,777,268 three-year warrants were ascribed a fair value of $ 0.4 0 0.18 69 36 The 16,461,539 five-year warrants were ascribed a fair value of $ 7.8 0 0.46 62 60 The 1,152,307 0.5 0 0.46 62 60 Warrants outstanding: The continuity of outstanding warrants for the three months ended November 30, 2021 and year ended August 31, 2021 is as follows: Schedule of Reserve for warrants Number of Weighted average Balance – August 31, 2020 3,289,938 1.19 Warrants issued 20,391,114 0.89 Balance – August 31, 2021 23,681,052 0.94 Warrants expired (287,901 ) 0.93 Balance – November 30, 2021 23,393,151 0.94 At November 30, 2021, the following warrants and compensation warrants were outstanding: Schedule of warrants and compensation warrants Number of Exercise price Expiry date Convertible debenture warrants - July 27, 2020 3,002,037 $ 1.2125 July 27, 2023 Private placement financing warrants - December 23, 2020 2,777,268 $ 1.50 December 23, 2023 Private placement financing warrants - February 11, 2021 16,461,539 $ 0.80 February 11, 2026 Private placement financing broker warrants - February 11, 2021 1,152,307 $ 0.80 February 11, 2026 Balance, November 30, 2021 23,393,151 - - The outstanding warrants have a weighted average exercise price of $ 0.94 3.6 |
Non-controlling interest
Non-controlling interest | 3 Months Ended |
Nov. 30, 2021 | |
Non-controlling interest | 16. Non-controlling interest The changes to the non-controlling interest for the three-month period ended November 30, 2021 and year ended August 31, 2021 are as follows: Schedule of Changes to the non-controlling interest Year ended November 30, 2021 August 31, Balance at beginning of period/year $ (1,533 ) $ (254 ) Non-controlling interest’s 45% share of Buckreef Gold’s comprehensive loss (136 ) (1,279 ) Balance at end of period/year $ (1,669 ) $ (1,533 ) The following is summarized financial information for Buckreef Gold: Schedule of summarized financial information November 30, 2021 August 31, Current assets $ 1,933 $ 2,920 Long term assets 34,335 33,535 Current liabilities (1,747 ) (2,908 ) Asset retirement obligation (2,715 ) (2,681 ) Advances from parent (36,886 ) (33,728 ) Comprehensive loss for the period/year $ (301 ) $ (2,841 ) |
Related party transactions
Related party transactions | 3 Months Ended |
Nov. 30, 2021 | |
Related party transactions | 17. Related party transactions Related parties include the Board of Directors and officers, extended relatives and enterprises that are controlled by these individuals as well as certain consultants performing similar functions. Remuneration of Directors and key management personnel of the Company was as follows: Schedule of Related Parties Compensation Three months ended November 30, 2021 2020 Remuneration 1 $ 399 $ 210 Share based payments 980 - Total $ 1,379 $ 210 (1) Remuneration includes salaries and benefits for certain key management personnel and director fees. The board of directors do not have employment or service contracts with the Company. Directors are entitled to director fees and share based payments for their services and officers are entitled to cash remuneration and share based payments for their services. As of November 30, 2021, included in trade and other payables is $ 0.5 0.5 During the year ended August 31, 2021, the Company granted common shares upon hiring key management personnel in the aggregate of: a) 1.56 1.1 b) Common shares on the first, second and third anniversary dates of the greater of up to 2.02 3.55 2.82 1.4 2.5 2.0 The common shares had a value of $ 7.0 1.0 0 |
General and administrative expe
General and administrative expense | 3 Months Ended |
Nov. 30, 2021 | |
General and administrative expense | 18. General and administrative expense Schedule of General and Administrative expense Three months ended November 30, 2021 2020 Depreciation (Note 9) $ 81 $ 56 Directors’ fees 73 63 Office and general 230 118 Shareholder information 113 71 Professional fees 152 335 Salaries and benefits 673 509 Share based payments 980 - Travel and accommodation 43 21 Total General and Administrative $ 2,345 $ 1,173 |
Financial instrument related co
Financial instrument related costs and other | 3 Months Ended |
Nov. 30, 2021 | |
Financial Instrument Related Costs And Other | |
Financial instrument related costs and other | 19. Financial instrument related costs and other Schedule of Financial Instrument Related Costs and Other Three months ended November 30, 2021 2020 Gain on derivative warrant liabilities (Note 12) $ 208 $ 237 Change in fair value of convertible debentures - (668 ) Accretion on asset retirement obligation (34 ) (34 ) Transaction costs on convertible debenture - (42 ) Withholding tax costs - (1 ) Total financial instrument related costs and other $ 174 $ (508 ) |
Management of Capital
Management of Capital | 3 Months Ended |
Nov. 30, 2021 | |
Management Of Capital | |
Management of Capital | 20. Management of Capital The Company's objective when managing capital is to obtain adequate levels of funding to support its exploration and development activities, to obtain corporate and administrative functions necessary to support organizational functioning, to obtain sufficient funding to further the identification and development of precious metals deposits, and to develop and construct a low cost open-pit gold mine. The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the exploration and development of mineral properties. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company defines capital to include its shareholders’ equity. In order to carry out the planned exploration and pay for administrative costs, the Company will spend its existing working capital and may raise additional amounts as needed. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There were no changes in the Company's approach to capital management during the three-month period ended November 30, 2021. The Company is not subject to externally imposed capital requirements. The Company considers its capital to be shareholders’ equity, which is comprised of share capital, reserves, and deficit, which as at November 30, 2021 totaled $ 47.0 48.0 The Company raises capital, as necessary, to meet its needs and take advantage of perceived opportunities and, therefore, does not have a numeric target for its capital structure. Funds are primarily secured through equity capital raised by way of private placements, however, debt and other financing alternatives may be utilized as well. There can be no assurance that the Company will be able to continue raising equity capital in this manner. The Company invests all capital that is surplus to its immediate operational needs in short term, liquid and highly rated financial instruments, such as cash, and short-term guarantee deposits, all held with major North American financial institutions and North American treasury deposits. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Nov. 30, 2021 | |
Financial Instruments | 21. Financial Instruments Fair Value of Financial Instruments Cash and derivative warrant liabilities are classified as fair value through profit and loss. Trade and other payables are classified as other financial liabilities, which are measured at amortized cost. Trade and Other Receivables are measured at amortized cost. The carrying value of the Company’s cash, other receivables, trade and other payables approximate their fair value due to the relatively short-term nature of these instruments. Fair value estimates are made at a specific point in time, based on relevant market information and information about financial instruments. These estimates are subject to and involve uncertainties and matters of significant judgment, therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The Company classifies its financial instruments carried at fair value according to a three-level hierarchy that reflects the significance of the inputs used in making the fair value measurements. The three levels of fair value hierarchy are as follows: · Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; · Level 2 - Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly; and · Level 3 – Inputs for assets or liabilities that are not based on observable market data. As of November 30, 2021 and August 31, 2021, cash is recorded at fair value under level 1 within the fair value hierarchy, and derivative warrant liabilities (Note 12) are classified as level 3. The following table shows the valuation techniques used in measuring Level 3 fair values for derivative warrant liabilities, as well as the significant unobservable inputs used. Schedule of derivative warrant liabilities and convertible debentures Type Valuation Technique Key Inputs Inter-relationship between significant inputs and fair value measurement Derivative warrant liabilities The fair value of the warrant liabilities at the year-end has been calculated using a Black-Scholes pricing model combined with a discounted cash flow methodology. Key observable inputs · Share price (November 30, 2021: $0.41, August 31, 2021: $0.41) · Risk-free interest rate (November 30, 2021: 0.42% to 1.01%, August 31, 2021: 0.19% to 0.67%) · Dividend yield (November 30, 2021: 0%, August 31, 2021: 0%) Key unobservable inputs · Expected volatility (November 30, 2021: 60%, August 31, 2021: 60% to 70%) The estimated fair value would increase (decrease) if: · The share price was higher (lower) · The risk-free interest rate was higher (lower) · The dividend yield was lower (higher) · The expected volatility factor was higher (lower) · The credit spread was lower (higher) Convertible debentures The fair value of the convertible debt during the period was calculated using a binomial lattice methodology. Key observable inputs* · Share price (August 31, 2021: $0.623 to $0.828) · Risk-free interest rate (August 31, 2021: 0.10% to 0.16%) · Dividend yield (August 31, 2021: 0%) Key unobservable inputs* · Discount for lack of marketability (DLOM) (August 31, 2021: 5%-15%) The estimated fair value would increase (decrease) if: · The share price was higher (lower) · The risk-free interest rate was higher (lower) · The dividend yield was lower (higher) · The discount for lack of marketability was lower (higher) *The range provided for the year ended August 31, 2021 refers to the range used for each assumption for the fair value at the date of the conversions during the period as the balance is $nil at year end. Sensitivity Analysis For the fair values of derivative warrant liabilities, reasonably possible changes to expected volatility, the significant unobservable input, holding other inputs constant would have the following effects: Schedule of significant unobservable input Derivative Warrant Liabilities November 30, 2021 Comprehensive Loss Increase Decrease Expected volatility (20% movement vs. the model input) $ (653 ) $ 544 A summary of the Company’s risk exposures as they relate to financial instruments are reflected below: Credit Risk Credit risk is the risk of an unexpected loss if a third party to a financial instrument fails to meet its contractual obligations. The Company is subject to credit risk on the cash balances at the bank and accounts and other receivables and the carrying value of those accounts represent the Company’s maximum exposure to credit risk. The amounts receivable consists primarily of amounts due from government taxation authorities. The Company has not recorded an impairment or allowance for credit risk as at November 30, 2021, or August 31, 2021. Liquidity Risk The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at November 30, 2021, the Company had cash of $ 7.9 13.4 10.1 15.4 5.9 7.4 4.2 8.0 1.9 Foreign Currency Risk The Company is exposed to the financial risk related to the fluctuation of foreign exchange rates. The Company has offices in Canada, USA, and Tanzania, but holds cash mainly in Canadian and United States currencies. A significant change in the currency exchange rates between the Canadian dollar relative to US dollar and Tanzanian shillings could have an effect on the Company’s results of operations, financial position, or cash flows. At November 30, 2021, the Company had no hedging agreements in place with respect to foreign exchange rates. As the majority of the transactions of the Company are denominated in US and Tanzanian Shilling currencies, movements in the foreign exchange rates are not expected to have a material impact on the consolidated statements of comprehensive loss. |
Segmented information
Segmented information | 3 Months Ended |
Nov. 30, 2021 | |
Segmented information | 22. Segmented information Operating Segments At November 30, 2021 the Company’s operations comprise of a single reporting operating segment engaged in mineral exploration and development in Tanzania. The Company’s corporate division only earns interest revenue that is considered incidental to the activities of the Company and therefore does not meet the definition of an operating segment as defined in IFRS 8 ‘Operating Segments’ An operating segment is defined as a component of the Company: · that engages in business activities from which it may earn revenues and incur expenses; · whose operating results are reviewed regularly by the entity’s chief operating decision maker; and · for which discrete financial information is available. Geographic Segments The Company is in the business of mineral exploration and production in the country of Tanzania. Information concerning the Company’s geographic locations is as follows: Schedule of operating segments As at November 30, 2021 As at Identifiable assets Canada $ 8,013 $ 12,382 Tanzania 45,955 44,136 $ 53,968 $ 56,518 Non-current assets Canada $ 26 $ 28 Tanzania 43,844 41,072 $ 43,870 $ 41,100 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2021 | |
Commitments and Contingencies | 23. Commitments and Contingencies Commitments: In order to maintain existing site mining and exploration licenses, the Company is required to pay annual license fees. As at November 30, 2021 and August 31, 2021 these licenses remained in good standing and the Company is up to date on license payments. Contingencies: The Company is involved in litigation and disputes arising in the normal course of operations. Management is of the opinion that the outcome of any potential litigation will not have a material adverse impact on the Company’s financial position or results of operations. Accordingly, the commitment table does not include any provisions for the settlement of outstanding litigation and potential claims. |
Non-cash items
Non-cash items | 3 Months Ended |
Nov. 30, 2021 | |
Non-cash Items | |
Non-cash items | 24. Non-cash items Schedule of Non-cash items Three months ended November 30, 2021 2020 Depreciation $ 81 $ 56 Gain on derivative warrant liabilities (208 ) (236 ) Change in fair value of convertible debentures - 668 Share based payments 980 - Accretion on asset retirement obligation 34 34 Foreign exchange - 13 Forgiveness of interest - (34 ) Total Non-cash items $ 887 $ 501 |
Basis of Preparation and Sign_2
Basis of Preparation and Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 2021 | |
Basis Of Preparation And Significant Accounting Policies | |
Basis of presentation and measurement | i) Basis of presentation and measurement The unaudited condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and Interpretations of the International Financial Reporting Interpretations Committee which the Canadian Accounting Standards Board has approved for incorporation into Part 1 of the CPA Canada Handbook - Accounting including IAS 34 Interim financial reporting. The condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended August 31, 2021. The consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments which have been measured at fair value. During the year ended August 31, 2021, the Company changed its presentation currency from the Canadian dollar to the US dollar. The Company believes that the change in presentation currency will provide shareholders with a better reflection of the Company’s business activities and enhance the comparability of the Company’s financial information to its peers. For more details, see Note 4 of these unaudited interim condensed consolidated financial statements. Reference herein of $ or USD is to US dollars, C$ or CAD is to Canadian dollars. Balance sheet items are classified as current if receipt or payment is due within twelve months. Otherwise, they are presented as non-current. These condensed interim consolidated financial statements were approved by the Board of Directors for issue on January 14, 2022. |
Significant accounting policies | ii) Significant accounting policies The accounting policies applied in these condensed interim consolidated financial statements are consistent with those applied in the preparation of the Company’s annual consolidated financial statements for the year ended August 31, 2021 except as noted below. Mineral properties – Construction in progress All expenditures undertaken in the development, construction, installation and/or completion of mine production facilities to extract, treat, gather, transport and store of minerals are capitalized and initially classed as “Construction in progress”. All expenditures related to the construction of mine and obtain access to the orebody are considered to be capital development and are capitalized. Expenses incurred after reaching the orebody are regards as operating development costs and are included in the cost of ore hoisted. Upon the commencement of commercial production, all related assets included in “Construction in progress” are reclassified to “Mineral properties” or “Property, plant and equipment”. Determination of commencement of commercial production is a complex process and requires significant assumptions and estimates. The commencement of commercial production is defined as the date when the mine is capable of operating in the manner intended by management. The Company considers primarily the following factors, among others, when determining the commencement of commercial production: · All major capital expenditures to achieve a consistent level of production and desired capacity have been incurred; · A reasonable period of testing of the mine plant and equipment has been completed; · A predetermined percentage of design capacity of the mine and mill has been reached; and · Required production levels, grades and recoveries have been achieved. |
New accounting pronouncements | iii) New accounting pronouncements In 2020, the IASB issued amendments to IAS 16, Property Plant and Equipment In May 2021, the IASB issued amendments to IAS 12, Income Taxes |
Change in Presentation Curren_2
Change in Presentation Currency (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Change In Presentation Currency | |
Schedule of change in presentation currency | Schedule of change in presentation currency As at November 30, 2020 Reported at Presentation Restated at Consolidated statement of financial position Cash 2,673 (613 ) 2,060 Other current assets 2,263 (519 ) 1,744 Non-current assets 44,054 (10,106 ) 33,948 Total assets 48,990 (11,238 ) 37,752 Current liabilities (13,933 ) 3,197 (10,736 ) Long term debt (3,535 ) 811 (2,724 ) Total liabilities (17,468 ) 4,008 (13,460 ) Share capital 179,766 (43,608 ) 136,158 Reserves 4,482 (1,006 ) 3,476 Accumulated deficit and other comprehensive income (151,680 ) 37,112 (114,568 ) Non-controlling interests (1,046 ) 272 (774 ) Total shareholders’ equity 31,521 (7,230 ) 24,292 |
Schedule of consolidated statement of comprehensive loss | Schedule of consolidated statement of comprehensive loss Reported at Presentation Restated at General and administrative expense (1,544 ) 371 (1,173 ) Other income (expense) (480 ) 18 (462 ) Net loss and comprehensive loss (2,024 ) 389 (1,635 ) Earnings per share – basic and diluted (0.01 ) - (0.01 ) |
Schedule of consolidated statement of cash flows | Schedule of consolidated statement of cash flows Reported at Presentation Restated at Cash used in operating activities (2,276 ) 526 (1,750 ) Cash used in investing activities (1,617 ) 401 (1,216 ) Cash provided by financing activities 1,272 (299 ) 973 Net decrease in cash (2,621 ) 628 (1,993 ) Cash beginning of period 5,294 (1,241 ) 4,053 Cash end of period 2,673 (613 ) 2,060 |
Amounts receivable (Tables)
Amounts receivable (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of Summary of Receivables | Schedule of Summary of Receivables November 30, 2021 August 31, 2021 HST and VAT receivable $ 458 $ 432 Other 44 28 Amounts Receivable $ 502 $ 460 |
Schedule of Aged analysis of Receivables | Schedule of Aged analysis of Receivables November 30, 2021 August 31, 2021 Less than 1 month $ 23 $ 23 1 to 3 months 43 43 Over 3 months 436 394 Total Amounts Receivable $ 502 $ 460 |
Prepaid and other assets (Table
Prepaid and other assets (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of Prepaid and Other Assets | Schedule of Prepaid and Other Assets November 30, 2021 August 31, 2021 Insurance $ 110 $ 54 Listing fees 8 32 Drilling - 200 Legal retainers and other 32 46 Total Prepaid Expenses $ 150 $ 332 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of Inventory | Schedule of Inventory November 30, 2021 August 31, 2021 Stockpiled ore $ 891 $ 712 Work in progress 470 350 Supplies 156 117 Total Inventory $ 1,517 $ 1,179 |
Mineral property, plant and e_2
Mineral property, plant and equipment (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Mineral Property Plant And Equipment | |
Schedule of continuity of expenditures on mineral properties | Schedule of continuity of expenditures on mineral properties Construction Processing Machinery Other Total Cost As at September 1, 2020 $ - $ 2,657 $ 1,220 $ 161 $ 4,038 Additions - 622 437 - 1,059 Disposals - - (703 ) (79 ) (782 ) As at August 31, 2021 $ - $ 3,279 $ 954 $ 82 $ 4,315 Additions - 802 85 19 906 Transfer from E&E assets 40,563 - - - 40,563 As at November 30, 2021 $ 40,563 $ 4,081 $ 1,039 $ 101 $ 45,784 Accumulated depreciation As at September 1, 2020 $ - $ 1,212 $ 1,015 $ 73 $ 2,300 Depreciation expense - 128 144 14 286 Disposals - - (686 ) (67 ) (753 ) As at August 31, 2021 $ - $ 1,340 $ 473 $ 20 $ 1,833 Depreciation expense - 30 49 2 81 As at November 30, 2021 $ - $ 1,370 $ 522 $ 22 $ 1,914 Net book value As at August 31, 2021 $ - $ 1,939 $ 481 $ 62 $ 2,482 As at November 30, 2021 $ 40,563 $ 2,711 $ 517 $ 79 $ 43,870 |
Exploration and evaluation as_2
Exploration and evaluation assets and expenditures (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of continuity of expenditures on mineral properties | Schedule of continuity of expenditures on mineral properties Buckreef Balance, August 31, 2020 $ 30,997 Exploration expenditures: Camp, field supplies and travel 356 License fees and exploration and field overhead 2,809 Geological consulting and field wages 3,150 Trenching and drilling 605 Mine design 1,321 Mining and processing costs 987 Change in estimate of asset retirement obligation (133 ) Gold sales (2,524 ) Payments to STAMICO as per Joint Venture agreement 1,050 Balance, August 31, 2021 $ 38,618 Exploration expenditures: Camp, field supplies and travel 172 License fees and exploration and field overhead 861 Geological consulting and field wages 67 Trenching and drilling 550 Mine design 227 Mining and processing costs 431 Gold sales (535 ) Payments to STAMICO as per Joint Venture agreement 172 Balance, November 30, 2021 $ 40,563 Reclassification to mineral property, plant and equipment (40,563 ) Balance, November 30, 2021 $ - |
Trade, other payables and acc_2
Trade, other payables and accrued liabilities (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of Aged analysis of Trade, Other Payables and Accrued Liabilities | Schedule of Aged analysis of Trade, Other Payables and Accrued Liabilities November 30, 2021 August 31, 2021 Less than 1 month $ 637 $ 2,161 1 to 3 months 1,533 119 Over 3 months 1,797 2,983 Total Trade, Other Payables and Accrued Liabilities $ 3,967 $ 5,263 |
Derivative warrant liabilities
Derivative warrant liabilities (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Derivative Warrant Liabilities | |
Schedule of derivative warrant liabilities | Schedule of derivative warrant liabilities August 31, 2021 Balance at August 31, 2020 $ 551 Warrants issued February 11, 2021 (Note 15) 7,830 Fair value adjustment (6,232 ) Balance at August 31, 2021 $ 2,149 Fair value adjustment (208 ) Balance at November 30, 2021 $ 1,941 |
Schedule of assumptions fair value of derivative warrant liabilities | Schedule of assumptions fair value of derivative warrant liabilities November 30, 2021 August 31, 2021 Share price $ 0.41 0.41 Risk-free interest rate 0.42 - 1.01 0.19 - 0.67 Dividend yield 0 0 Expected volatility 60 60 - 70 Remaining term (in years) 1.7 – 4.2 1.9 – 4.4 |
Share capital (Tables)
Share capital (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of Share Capital Activity | Schedule of Share Capital Activity Number of $ (000’s) Balance at August 31, 2020 199,975,122 $ 135,100 Issued for cash, net of share issue costs 38,477,666 23,226 Warrants issued - (8,710 ) Issued for settlement of convertible debentures 12,150,447 7,015 Issued for settlement of debts related to convertible and gold loans 4,266,321 1,497 Options exercised 1,000 - Transfer of reserve on exercise of options - 1 Balance at August 31, 2021 254,870,556 $ 158,129 Issued for settlement of outstanding fees 165,889 98 Balance at November 30, 2021 255,036,445 $ 158,227 |
Share based payment reserve (Ta
Share based payment reserve (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of reserve for share based payments | Schedule of reserve for share based payments Period/year ended November 30, 2021 August 31, Balance at beginning of period/year $ 5,680 $ 2,748 Share based compensation – Common shares (Note 17) 980 2,933 Transfer of reserve on exercise of options - (1 ) Balance at end of period/year $ 6,660 $ 5,680 |
Schedule of continuity of outstanding stock options | Schedule of continuity of outstanding stock options Number of Weighted average Balance – August 31, 2020 7,352,000 CAD $ 0.41 Options exercised (1,000 ) CAD $ 0.40 Balance – August 31, 2021 and November 30, 2021 7,351,000 CAD $ 0.41 |
Schedule of Options to purchase common shares carry exercise prices and terms to maturity | Schedule of Options to purchase common shares carry exercise prices and terms to maturity Remaining Exercise price (1) Number of options Expiry contractual Outstanding $ Outstanding Exercisable Date life (years) (1) CAD $ 0.40 3,719,000 3,719,000 September 29, 2026 4.8 CAD $ 0.43 3,532,000 3,532,000 October 11, 2026 4.9 CAD $ 0.35 100,000 100,000 January 2, 2028 6.1 CAD $ 0.41 7,351,000 7,351,000 4.9 (1) Total represents weighted average. |
Warrants reserve (Tables)
Warrants reserve (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of Reserve for warrants | Schedule of Reserve for warrants Number of Weighted average Balance – August 31, 2020 3,289,938 1.19 Warrants issued 20,391,114 0.89 Balance – August 31, 2021 23,681,052 0.94 Warrants expired (287,901 ) 0.93 Balance – November 30, 2021 23,393,151 0.94 |
Schedule of warrants and compensation warrants | Schedule of warrants and compensation warrants Number of Exercise price Expiry date Convertible debenture warrants - July 27, 2020 3,002,037 $ 1.2125 July 27, 2023 Private placement financing warrants - December 23, 2020 2,777,268 $ 1.50 December 23, 2023 Private placement financing warrants - February 11, 2021 16,461,539 $ 0.80 February 11, 2026 Private placement financing broker warrants - February 11, 2021 1,152,307 $ 0.80 February 11, 2026 Balance, November 30, 2021 23,393,151 - - |
Non-controlling interest (Table
Non-controlling interest (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of Changes to the non-controlling interest | Schedule of Changes to the non-controlling interest Year ended November 30, 2021 August 31, Balance at beginning of period/year $ (1,533 ) $ (254 ) Non-controlling interest’s 45% share of Buckreef Gold’s comprehensive loss (136 ) (1,279 ) Balance at end of period/year $ (1,669 ) $ (1,533 ) |
Schedule of summarized financial information | Schedule of summarized financial information November 30, 2021 August 31, Current assets $ 1,933 $ 2,920 Long term assets 34,335 33,535 Current liabilities (1,747 ) (2,908 ) Asset retirement obligation (2,715 ) (2,681 ) Advances from parent (36,886 ) (33,728 ) Comprehensive loss for the period/year $ (301 ) $ (2,841 ) |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of Related Parties Compensation | Schedule of Related Parties Compensation Three months ended November 30, 2021 2020 Remuneration 1 $ 399 $ 210 Share based payments 980 - Total $ 1,379 $ 210 (1) Remuneration includes salaries and benefits for certain key management personnel and director fees. The board of directors do not have employment or service contracts with the Company. Directors are entitled to director fees and share based payments for their services and officers are entitled to cash remuneration and share based payments for their services. |
General and administrative ex_2
General and administrative expense (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of General and Administrative expense | Schedule of General and Administrative expense Three months ended November 30, 2021 2020 Depreciation (Note 9) $ 81 $ 56 Directors’ fees 73 63 Office and general 230 118 Shareholder information 113 71 Professional fees 152 335 Salaries and benefits 673 509 Share based payments 980 - Travel and accommodation 43 21 Total General and Administrative $ 2,345 $ 1,173 |
Financial instrument related _2
Financial instrument related costs and other (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Financial Instrument Related Costs And Other | |
Schedule of Financial Instrument Related Costs and Other | Schedule of Financial Instrument Related Costs and Other Three months ended November 30, 2021 2020 Gain on derivative warrant liabilities (Note 12) $ 208 $ 237 Change in fair value of convertible debentures - (668 ) Accretion on asset retirement obligation (34 ) (34 ) Transaction costs on convertible debenture - (42 ) Withholding tax costs - (1 ) Total financial instrument related costs and other $ 174 $ (508 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of derivative warrant liabilities and convertible debentures | Schedule of derivative warrant liabilities and convertible debentures Type Valuation Technique Key Inputs Inter-relationship between significant inputs and fair value measurement Derivative warrant liabilities The fair value of the warrant liabilities at the year-end has been calculated using a Black-Scholes pricing model combined with a discounted cash flow methodology. Key observable inputs · Share price (November 30, 2021: $0.41, August 31, 2021: $0.41) · Risk-free interest rate (November 30, 2021: 0.42% to 1.01%, August 31, 2021: 0.19% to 0.67%) · Dividend yield (November 30, 2021: 0%, August 31, 2021: 0%) Key unobservable inputs · Expected volatility (November 30, 2021: 60%, August 31, 2021: 60% to 70%) The estimated fair value would increase (decrease) if: · The share price was higher (lower) · The risk-free interest rate was higher (lower) · The dividend yield was lower (higher) · The expected volatility factor was higher (lower) · The credit spread was lower (higher) Convertible debentures The fair value of the convertible debt during the period was calculated using a binomial lattice methodology. Key observable inputs* · Share price (August 31, 2021: $0.623 to $0.828) · Risk-free interest rate (August 31, 2021: 0.10% to 0.16%) · Dividend yield (August 31, 2021: 0%) Key unobservable inputs* · Discount for lack of marketability (DLOM) (August 31, 2021: 5%-15%) The estimated fair value would increase (decrease) if: · The share price was higher (lower) · The risk-free interest rate was higher (lower) · The dividend yield was lower (higher) · The discount for lack of marketability was lower (higher) *The range provided for the year ended August 31, 2021 refers to the range used for each assumption for the fair value at the date of the conversions during the period as the balance is $nil at year end. |
Schedule of significant unobservable input | Schedule of significant unobservable input Derivative Warrant Liabilities November 30, 2021 Comprehensive Loss Increase Decrease Expected volatility (20% movement vs. the model input) $ (653 ) $ 544 |
Segmented information (Tables)
Segmented information (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of operating segments | Schedule of operating segments As at November 30, 2021 As at Identifiable assets Canada $ 8,013 $ 12,382 Tanzania 45,955 44,136 $ 53,968 $ 56,518 Non-current assets Canada $ 26 $ 28 Tanzania 43,844 41,072 $ 43,870 $ 41,100 |
Non-cash items (Tables)
Non-cash items (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Non-cash Items | |
Schedule of Non-cash items | Schedule of Non-cash items Three months ended November 30, 2021 2020 Depreciation $ 81 $ 56 Gain on derivative warrant liabilities (208 ) (236 ) Change in fair value of convertible debentures - 668 Share based payments 980 - Accretion on asset retirement obligation 34 34 Foreign exchange - 13 Forgiveness of interest - (34 ) Total Non-cash items $ 887 $ 501 |
Nature of Operations and Goin_2
Nature of Operations and Going Concern (Details Narrative) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Nature Of Operations And Going Concern | ||
Cash | $ 7,929 | $ 13,447 |
Change in Presentation Curren_3
Change in Presentation Currency (Details) $ in Thousands, $ in Thousands | Nov. 30, 2021USD ($) | Aug. 31, 2021USD ($) | Aug. 31, 2021CAD ($) | Nov. 30, 2020USD ($) | Nov. 30, 2020CAD ($) | Aug. 31, 2020USD ($) |
IfrsStatementLineItems [Line Items] | ||||||
Cash | $ 7,929 | $ 13,447 | ||||
Non-current assets | 43,870 | 41,100 | ||||
Total assets | 53,968 | 56,518 | ||||
Current liabilities | 5,908 | 7,412 | ||||
Share capital | 158,227 | 158,129 | ||||
Reserves | 6,660 | 5,680 | ||||
Non-controlling interests (Note 21) | (1,669) | (1,533) | ||||
Total shareholders' equity | $ 45,345 | 46,425 | $ 24,292 | $ 24,869 | ||
Previously stated [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Cash | $ 5,294 | $ 2,673 | ||||
Other current assets | 2,263 | |||||
Non-current assets | 44,054 | |||||
Total assets | 48,990 | |||||
Current liabilities | (13,933) | |||||
Long term debt | (3,535) | |||||
Total liabilities | (17,468) | |||||
Share capital | 179,766 | |||||
Reserves | 4,482 | |||||
Accumulated deficit and other comprehensive income | (151,680) | |||||
Non-controlling interests (Note 21) | (1,046) | |||||
Total shareholders' equity | $ 31,521 | |||||
Presentation Currency Change [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Cash | (1,241) | (613) | ||||
Other current assets | (519) | |||||
Non-current assets | (10,106) | |||||
Total assets | (11,238) | |||||
Current liabilities | 3,197 | |||||
Long term debt | 811 | |||||
Total liabilities | 4,008 | |||||
Share capital | (43,608) | |||||
Reserves | (1,006) | |||||
Accumulated deficit and other comprehensive income | 37,112 | |||||
Non-controlling interests (Note 21) | 272 | |||||
Total shareholders' equity | (7,230) | |||||
Restateds [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Cash | $ 4,053 | 2,060 | ||||
Other current assets | 1,744 | |||||
Non-current assets | 33,948 | |||||
Total assets | 37,752 | |||||
Current liabilities | (10,736) | |||||
Long term debt | (2,724) | |||||
Total liabilities | (13,460) | |||||
Share capital | 136,158 | |||||
Reserves | 3,476 | |||||
Accumulated deficit and other comprehensive income | (114,568) | |||||
Non-controlling interests (Note 21) | (774) | |||||
Total shareholders' equity | $ 24,292 |
Change in Presentation Curren_4
Change in Presentation Currency (Details 1) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | 3 Months Ended | ||
Nov. 30, 2021USD ($)$ / shares | Nov. 30, 2020USD ($)$ / shares | Nov. 30, 2020CAD ($)$ / shares | |
IfrsStatementLineItems [Line Items] | |||
General and administrative expense (Note 27) | $ 2,345 | $ 1,173 | |
Net loss and comprehensive loss | $ 2,158 | $ 1,635 | |
Earnings per share - basic and diluted | $ / shares | $ (0.01) | $ (0.01) | |
Previously stated [member] | |||
IfrsStatementLineItems [Line Items] | |||
General and administrative expense (Note 27) | $ (1,544) | ||
Other income (expenses) | (480) | ||
Net loss and comprehensive loss | $ (2,024) | ||
Earnings per share - basic and diluted | $ / shares | $ (0.01) | ||
Presentation Currency Change [Member] | |||
IfrsStatementLineItems [Line Items] | |||
General and administrative expense (Note 27) | $ 371 | ||
Other income (expenses) | 18 | ||
Net loss and comprehensive loss | $ 389 | ||
Earnings per share - basic and diluted | $ / shares | |||
Restateds [Member] | |||
IfrsStatementLineItems [Line Items] | |||
General and administrative expense (Note 27) | $ (1,173) | ||
Other income (expenses) | (462) | ||
Net loss and comprehensive loss | $ (1,635) | ||
Earnings per share - basic and diluted | $ / shares | $ (0.01) |
Change in Presentation Curren_5
Change in Presentation Currency (Details 2) $ in Thousands, $ in Thousands | 3 Months Ended | ||||||
Nov. 30, 2021USD ($) | Nov. 30, 2020USD ($) | Nov. 30, 2020CAD ($) | Aug. 31, 2021USD ($) | Aug. 31, 2021CAD ($) | Nov. 30, 2020CAD ($) | Aug. 31, 2020USD ($) | |
IfrsStatementLineItems [Line Items] | |||||||
Cash used in operating activities | $ (2,955) | $ (1,750) | |||||
Cash used in investing activities | (2,563) | (1,216) | |||||
Cash provided by financing activities | 973 | ||||||
Net increase in cash | (5,518) | (1,993) | |||||
Cash, end of year | 7,929 | $ 13,447 | |||||
Cash, end of year | $ 7,929 | 2,060 | 13,447 | $ 4,053 | |||
Previously stated [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Cash used in operating activities | $ (2,276) | ||||||
Cash used in investing activities | (1,617) | ||||||
Cash provided by financing activities | 1,272 | ||||||
Net increase in cash | $ (2,621) | ||||||
Cash, end of year | $ 5,294 | $ 2,673 | |||||
Cash, end of year | $ 2,673 | ||||||
Presentation Currency Change [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Cash used in operating activities | 526 | ||||||
Cash used in investing activities | 401 | ||||||
Cash provided by financing activities | (299) | ||||||
Net increase in cash | 628 | ||||||
Cash, end of year | (613) | (1,241) | |||||
Cash, end of year | (613) | ||||||
Restateds [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Cash used in operating activities | (1,750) | ||||||
Cash used in investing activities | (1,216) | ||||||
Cash provided by financing activities | 973 | ||||||
Net increase in cash | (1,993) | ||||||
Cash, end of year | $ 2,060 | 4,053 | |||||
Cash, end of year | $ 2,060 |
Cash (Details Narrative)
Cash (Details Narrative) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Cash | ||
Cash | $ 7,929 | $ 13,447 |
Amounts receivable (Details)
Amounts receivable (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
HST and VAT receivable | $ 458 | $ 432 |
Other | 44 | 28 |
Amounts Receivable | $ 502 | $ 460 |
Amounts receivable (Details 1)
Amounts receivable (Details 1) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Other receivables | $ 502 | $ 460 |
Later than three months and not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 23 | 23 |
Not later than one month [member] | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 43 | 43 |
Later than one month and not later than three months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | $ 436 | $ 394 |
Prepaid and Other Assets (Detai
Prepaid and Other Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Insurance | $ 110 | $ 54 |
Listing fees | 8 | 32 |
Drilling | 200 | |
Legal retainers and other | 32 | 46 |
Total Prepaid Expenses | $ 150 | $ 332 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Stockpiled ore | $ 891 | $ 712 |
Work in progress | 470 | 350 |
Supplies | 156 | 117 |
Total Inventory | $ 1,517 | $ 1,179 |
Mineral Properties and Deferred
Mineral Properties and Deferred Exploration (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2021 | Aug. 31, 2021 | ||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | $ 2,482 | ||
Ending balance | 43,870 | $ 2,482 | |
Net book value | 43,870 | 2,482 | |
Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | |||
Ending balance | 40,563 | ||
Net book value | 40,563 | ||
Processing plant [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 1,939 | ||
Ending balance | 2,711 | 1,939 | |
Net book value | 2,711 | 1,939 | |
Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 481 | ||
Ending balance | 517 | 481 | |
Net book value | 517 | 481 | |
Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 62 | ||
Ending balance | 79 | 62 | |
Net book value | 79 | 62 | |
Gross carrying amount [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 4,315 | 4,038 | |
Additions | 906 | 1,059 | |
Disposals | (782) | ||
Transfer from E&E assets | 40,563 | ||
Ending balance | 45,784 | 4,315 | |
Net book value | 45,784 | 4,315 | |
Gross carrying amount [member] | Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | |||
Additions | |||
Disposals | |||
Transfer from E&E assets | 40,563 | ||
Ending balance | 40,563 | ||
Net book value | 40,563 | ||
Gross carrying amount [member] | Processing plant [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 3,279 | 2,657 | |
Additions | 802 | 622 | |
Disposals | |||
Transfer from E&E assets | |||
Ending balance | 4,081 | 3,279 | |
Net book value | 4,081 | 3,279 | |
Gross carrying amount [member] | Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 954 | 1,220 | |
Additions | 85 | 437 | |
Disposals | (703) | ||
Transfer from E&E assets | |||
Ending balance | 1,039 | 954 | |
Net book value | 1,039 | 954 | |
Gross carrying amount [member] | Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 82 | 161 | |
Additions | 19 | ||
Disposals | (79) | ||
Transfer from E&E assets | |||
Ending balance | 101 | 82 | |
Net book value | 101 | 82 | |
Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 1,833 | 2,300 | |
Disposals | [1] | (753) | |
Ending balance | 1,914 | 1,833 | |
Depreciation, property, plant and equipment | 81 | 286 | |
Net book value | 1,914 | 1,833 | |
Accumulated depreciation and amortisation [member] | Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | |||
Disposals | [1] | ||
Ending balance | |||
Depreciation, property, plant and equipment | |||
Net book value | |||
Accumulated depreciation and amortisation [member] | Processing plant [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 1,340 | 1,212 | |
Disposals | [1] | ||
Ending balance | 1,370 | 1,340 | |
Depreciation, property, plant and equipment | 30 | 128 | |
Net book value | 1,370 | 1,340 | |
Accumulated depreciation and amortisation [member] | Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 473 | 1,015 | |
Disposals | [1] | (686) | |
Ending balance | 522 | 473 | |
Depreciation, property, plant and equipment | 49 | 144 | |
Net book value | 522 | 473 | |
Accumulated depreciation and amortisation [member] | Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 20 | 73 | |
Disposals | [1] | (67) | |
Ending balance | 22 | 20 | |
Depreciation, property, plant and equipment | 2 | 14 | |
Net book value | $ 22 | $ 20 | |
[1] | Total represents weighted average. |
Exploration and evaluation as_3
Exploration and evaluation assets and expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance | $ 38,618 | |
Ending balance | $ 38,618 | |
Buckreef Gold Project [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 38,618 | 30,997 |
Camp, field supplies and travel | 172 | 356 |
License fees and exploration and field overhead | 861 | 2,809 |
Geological consulting and field wages | 67 | 3,150 |
Trenching and drilling | 550 | 605 |
Mine design | 227 | 1,321 |
Mining and processing costs | 431 | 987 |
Change in estimate of asset retirement obligation | (133) | |
Gold sales | (535) | (2,524) |
Payments to STAMICO as per Joint Venture agreement | 172 | 1,050 |
Reclassification to mineral property, plant and equipment | (40,563) | |
Ending balance | $ 38,618 |
Trade, Other Payables and Acc_3
Trade, Other Payables and Accrued Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Total Trade, Other Payables and Accrued Liabilities | $ 3,967 | $ 5,263 |
Not later than one month [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Trade, Other Payables and Accrued Liabilities | 637 | 2,161 |
Later than one month and not later than three months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Trade, Other Payables and Accrued Liabilities | 1,533 | 119 |
Later than three months and not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Trade, Other Payables and Accrued Liabilities | $ 1,797 | $ 2,983 |
Derivative warrant liabilitie_2
Derivative warrant liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance at derivative warrant liabilities | $ 1,900 | |
Ending balance at derivative warrant liabilities | $ 1,900 | |
Derivative Warrant Liabilities [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance at derivative warrant liabilities | 2,149 | 551 |
Warrants issued | 7,830 | |
Fair value adjustment | (208) | (6,232) |
Ending balance at derivative warrant liabilities | $ 1,941 | $ 2,149 |
Derivative warrant liabilitie_3
Derivative warrant liabilities (Details 1) - Derivative Warrant Liabilities [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Share price | $ 0.41 | $ 0.41 |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 60.00% | |
Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Risk-free interest rate | 0.42% | 0.19% |
Expected volatility | 60.00% | |
Remaining term (in years) | 1 year 8 months 12 days | 1 year 10 months 24 days |
Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Risk-free interest rate | 1.01% | 0.67% |
Expected volatility | 70.00% | |
Remaining term (in years) | 4 years 2 months 12 days | 4 years 4 months 24 days |
Derivative warrant liabilitie_4
Derivative warrant liabilities (Details Narrative) $ in Thousands | Aug. 31, 2021USD ($) |
Derivative Warrant Liabilities | |
Derivative warrant liabilities | $ 1,900 |
Share capital (Details)
Share capital (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance, value | $ 46,425 | $ 24,869 |
Ending balance, value | $ 45,345 | $ 46,425 |
Issued capital [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance, number (in shares) | 254,870,556 | 199,975,122 |
Beginning balance, value | $ 158,129 | $ 135,100 |
Issued for cash, net of share issue costs, shares | 38,477,666 | |
Issued for cash, net of share issue costs | $ 23,226 | |
Warrants issued, shares | ||
Warrants issued | $ (8,710) | |
Issued for settlement of convertible debentures, shares | 12,150,447 | |
Issued for settlement of convertible debentures | $ 7,015 | |
Issued for settlement of debts related to convertible and gold loans, shares | 4,266,321 | |
Issued for settlement of debts related to convertible and gold loans | $ 1,497 | |
Options exercised, shares | 1,000 | |
Options exercised | ||
Transfer of reserve on exercise of options, shares | ||
Transfer of reserve on exercise of options | $ 1 | |
Issued for settlement of outstanding fees, shares | 165,889 | |
Issued for settlement of outstanding fees | $ 98 | |
Balance, number (in shares) | 255,036,445 | 254,870,556 |
Ending balance, value | $ 158,227 | $ 158,129 |
Share capital (Details Narrativ
Share capital (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Feb. 11, 2021 | Dec. 23, 2020 | Nov. 30, 2021 | Aug. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||||
Sale of stock | 32,923,078 | 5,554,588 | 165,889 | |
Fair value of outstanding liability | $ 98 | |||
Outstanding fees settled | $ 98 | |||
Purchase of warrants | 16,461,539 | 2,777,268 | ||
Aggregate of net proceeds | $ 21,400 | $ 3,000 | ||
Description of shares and warrants | The common shares and warrants were issued at $0.65 for each common share and a purchase warrant with the right of each whole warrant to purchase one common share at $0.80 for a period of five years from the issue date. The Company also issued 1,152,307 broker warrants with the same terms and incurred commission and other costs of $1.8 million out of which $0.7 million was allocated to the warrants issued in the unit and expensed in the statement of comprehensive loss. | |||
Price per share | $ 0.54 | |||
Warrants [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Price per share | $ 1.50 | |||
Tranche A Convertible Debentures [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Outstanding balance | $ 7,000 | |||
Converted to shares | 12,150,447 | |||
Aggregate of value | $ 7,000 |
Share based payment reserve (De
Share based payment reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance, value | $ 46,425 | $ 24,869 |
Ending balance, value | 45,345 | 46,425 |
Reserve of share-based payments [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance, value | 5,680 | 2,748 |
Share based compensation - Common shares | 980 | 2,933 |
Transfer of reserve on exercise of options | (1) | |
Ending balance, value | $ 6,660 | $ 5,680 |
Share based payment reserve (_2
Share based payment reserve (Details 1) - Stock Options [member] | 12 Months Ended |
Aug. 31, 2021shares$ / shares | |
IfrsStatementLineItems [Line Items] | |
Beginning balance | shares | 7,352,000 |
Beginning balance, weighted average exercise price | $ / shares | $ 0.41 |
Options exercised | shares | (1,000) |
Options excersied, weighted average exercise price | $ / shares | $ 0.40 |
Ending balance | shares | 7,351,000 |
Ending balance, weighted average exercise price | $ / shares | $ 0.41 |
Share based payment reserve (_3
Share based payment reserve (Details 2) | 3 Months Ended | |
Nov. 30, 2021shares$ / shares | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.41 | [1] |
Number of options outstanding | 7,351,000 | |
Number of options exercisable | 7,351,000 | |
Remaining contractual life | 4 years 10 months 24 days | [1] |
Range 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.40 | [1] |
Number of options outstanding | 3,719,000 | |
Number of options exercisable | 3,719,000 | |
Expiry date | Sep. 29, 2026 | |
Remaining contractual life | 4 years 9 months 18 days | [1] |
Range 2 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.43 | [1] |
Number of options outstanding | 3,532,000 | |
Number of options exercisable | 3,532,000 | |
Expiry date | Oct. 11, 2026 | |
Remaining contractual life | 4 years 10 months 24 days | [1] |
Range 3 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.35 | [1] |
Number of options outstanding | 100,000 | |
Number of options exercisable | 100,000 | |
Expiry date | Jan. 2, 2028 | |
Remaining contractual life | 6 years 1 month 6 days | [1] |
[1] | Total represents weighted average. |
Share based payment reserve (_4
Share based payment reserve (Details Narrative) - shares | Nov. 30, 2021 | Aug. 31, 2021 |
Omnibus Plan [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Stock options | 12,529,645 | 12,513,055 |
Warrants reserve (Details)
Warrants reserve (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2021 | |
Openning balance, Number of stock options | 23,681,052 | 3,289,938 |
Openning balance, Weighted average exercise price per share | $ 0.94 | $ 1.19 |
Warrants issued. Number of stock options | 20,391,114 | |
Warrants issued, Weighted average exercise price per share | $ 0.89 | |
Warrants expired, Number of stock options | (287,901) | |
Warrants expired, Weighted average exercise price per share | 0.93 | |
Ending balance, Number of stock options | 23,393,151 | 23,681,052 |
Ending balance, Weighted average exercise price per share | $ 0.94 | $ 0.94 |
Warrants reserve (Details 1)
Warrants reserve (Details 1) | 3 Months Ended |
Nov. 30, 2021$ / sharesshares | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 23,393,151 |
Convertible Debenture Warrants [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 3,002,037 |
Exercise price | $ / shares | $ 1.2125 |
Expiry date | Jul. 27, 2023 |
Private Placement Financing Agent Warrants Dated December 232020 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 2,777,268 |
Exercise price | $ / shares | $ 1.50 |
Expiry date | Dec. 23, 2023 |
Private Placement Financing Agent Warrants Dated Feburary 112021 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 16,461,539 |
Exercise price | $ / shares | $ 0.80 |
Expiry date | Feb. 11, 2026 |
Private Placement Financing Broker Warrants February 112021 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 1,152,307 |
Exercise price | $ / shares | $ 0.80 |
Expiry date | Feb. 11, 2026 |
Warrants reserve (Details Narra
Warrants reserve (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2021 | Aug. 31, 2021 | Aug. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Weighted average exercise price | $ 0.94 | $ 0.94 | $ 1.19 |
Weighted average remaining contractual life of outstanding share options | 3 years 7 months 6 days | ||
Three Year Warrants [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Issaunce of warrants | 2,777,268 | ||
Warrants exercise price | $ 1.50 | ||
Fair value of warrants | $ 400 | ||
Dividend yield | 0.00% | ||
Risk free interest | 0.18% | ||
Volatility | 69.00% | ||
Expected life | 36 months | ||
Five Year Warrants [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Issaunce of warrants | 16,461,539 | ||
Warrants exercise price | $ 0.80 | ||
Fair value of warrants | $ 7,800 | ||
Dividend yield | 0.00% | ||
Risk free interest | 0.46% | ||
Volatility | 62.00% | ||
Expected life | 60 months | ||
Five Year Warrants One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Issaunce of warrants | 1,152,307 | ||
Fair value of warrants | $ 500 | ||
Dividend yield | 0.00% | ||
Risk free interest | 0.46% | ||
Volatility | 62.00% | ||
Expected life | 60 months |
Non-controlling interest (Detai
Non-controlling interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Balance at beginning of period/year | $ (1,533) | |
Balance at end of period/year | (1,669) | |
Non-controlling interests [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at beginning of period/year | (1,533) | $ (254) |
Non-controlling interests | (136) | $ (1,279) |
Balance at end of period/year | $ (1,669) |
Non-Controlling Interest (Det_2
Non-Controlling Interest (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Current assets | $ 10,098 | $ 15,418 | |
Long term assets | 43,870 | 41,100 | |
Current liabilities | 5,908 | 7,412 | |
Asset retirement obligation | 2,715 | 2,681 | |
Comprehensive loss for the period/year | (2,158) | $ (1,635) | |
Non-controlling interests [member] | Buckreef [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Current assets | 1,933 | 2,920 | |
Long term assets | 34,335 | 33,535 | |
Current liabilities | (1,747) | (2,908) | |
Asset retirement obligation | (2,715) | (2,681) | |
Advances from parent | (36,886) | (33,728) | |
Comprehensive loss for the period/year | $ (301) | $ (2,841) |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | May 18, 2021 | ||
IfrsStatementLineItems [Line Items] | ||||
Remuneration | $ 1,100 | |||
Total | $ 1,379 | $ 210 | ||
Directors [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Remuneration | [1] | 399 | 210 | |
Share based payments | 980 | |||
Key management personnel of entity or parent [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Remuneration | [1] | 399 | 210 | |
Share based payments | $ 980 | |||
[1] | Remuneration includes salaries and benefits for certain key management personnel and director fees. The board of directors do not have employment or service contracts with the Company. Directors are entitled to director fees and share based payments for their services and officers are entitled to cash remuneration and share based payments for their services. |
General and Administrative ex_3
General and Administrative expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Depreciation (Note 9) | $ 81 | $ 56 |
Directors’ fees | 73 | 63 |
Office and general | 230 | 118 |
Shareholder information | 113 | 71 |
Professional fees | 152 | 335 |
Salaries and benefits | 673 | 509 |
Share based payments | 980 | |
Travel and accommodation | 43 | 21 |
Total General and Administrative | $ 2,345 | $ 1,173 |
Related party transactions (D_2
Related party transactions (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2021 | Nov. 30, 2020 | May 18, 2021 | Aug. 31, 2021 | Feb. 11, 2021 | Dec. 23, 2020 | |
IfrsStatementLineItems [Line Items] | ||||||
Due to related parties | $ 500 | $ 500 | ||||
Fair market value of shares | 1,560,000 | |||||
Key Management | $ 1,100 | |||||
Shares issued | 165,889 | 32,923,078 | 5,554,588 | |||
Stock value | $ 7,000 | |||||
Recognized amount | $ 1,000 | $ 0 | ||||
First Date Of Common Shares [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Shares issued | 2,020,000 | |||||
Fair market value | $ 1,400 | |||||
Second Date Of Common Shares [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Shares issued | 3,550,000 | |||||
Fair market value | $ 2,500 | |||||
Third Date Of Common Shares [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Shares issued | 2,820,000 | |||||
Fair market value | $ 2,000 |
Financial Instrument Related _3
Financial Instrument Related Costs and Other (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Financial Instrument Related Costs And Other | ||
Gain on derivative warrant liabilities (Note 12) | $ 208 | $ 237 |
Change in fair value of convertible debentures | 668 | |
Accretion on asset retirement obligation | (34) | (34) |
Transaction costs on convertible debenture | (42) | |
Withholding tax costs | (1) | |
Total financial instrument related costs and other | $ 174 | $ (508) |
Management of Capital (Details
Management of Capital (Details Narrative) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Management Of Capital | ||
Total equity attributable to owners of parent | $ 47,000 | $ 48,000 |
Financial Instruments (Details)
Financial Instruments (Details) | 3 Months Ended |
Nov. 30, 2021 | |
Derivative Warrant Liabilities [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation Technique | The fair value of the warrant liabilities at the year-end has been calculated using a Black-Scholes pricing model combined with a discounted cash flow methodology. |
Key Inputs | Key observable inputs · Share price (November 30, 2021: $0.41, August 31, 2021: $0.41) · Risk-free interest rate (November 30, 2021: 0.42% to 1.01%, August 31, 2021: 0.19% to 0.67%) · Dividend yield (November 30, 2021: 0%, August 31, 2021: 0%) Key unobservable inputs · Expected volatility (November 30, 2021: 60%, August 31, 2021: 60% to 70%) |
Inter-relationship between significant inputs and fair value measurement | The estimated fair value would increase (decrease) if: · The share price was higher (lower) · The risk-free interest rate was higher (lower) · The dividend yield was lower (higher) · The expected volatility factor was higher (lower) · The credit spread was lower (higher) |
Convertible Debentures [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation Technique | The fair value of the convertible debt during the period was calculated using a binomial lattice methodology. |
Key Inputs | Key observable inputs* · Share price (August 31, 2021: $0.623 to $0.828) · Risk-free interest rate (August 31, 2021: 0.10% to 0.16%) · Dividend yield (August 31, 2021: 0%) Key unobservable inputs* · Discount for lack of marketability (DLOM) (August 31, 2021: 5%-15%) |
Inter-relationship between significant inputs and fair value measurement | The estimated fair value would increase (decrease) if: · The share price was higher (lower) · The risk-free interest rate was higher (lower) · The dividend yield was lower (higher) · The discount for lack of marketability was lower (higher) |
Financial Instruments (Details
Financial Instruments (Details 1) $ in Thousands | 3 Months Ended |
Nov. 30, 2021USD ($) | |
Increase in comprehensive loss volatility | $ (653) |
Decrease in comprehensive loss volatility | $ 544 |
Financial Instruments (Detail_2
Financial Instruments (Details Narrative) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Cash | $ 7,929 | $ 13,447 |
Current Assets | 10,098 | 15,418 |
Current liabilities | 5,908 | 7,412 |
Working capital deficiency | 4,200 | $ 8,000 |
Derivative liabilities | $ 1,900 |
Segmented Information (Details)
Segmented Information (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Reserve Quantities [Line Items] | ||
Identifiable assets | $ 53,968 | $ 56,518 |
Non-current assets | 43,870 | 41,100 |
Canada [Member] | ||
Reserve Quantities [Line Items] | ||
Identifiable assets | 8,013 | 12,382 |
Non-current assets | 26 | 28 |
Tanzania [Member] | ||
Reserve Quantities [Line Items] | ||
Identifiable assets | 45,955 | 44,136 |
Non-current assets | $ 43,844 | $ 41,072 |
Non-cash items (Details)
Non-cash items (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Non-cash Items | ||
Depreciation | $ 81 | $ 56 |
Gain on derivative warrant liabilities | (208) | (236) |
Change in fair value of convertible debentures | 668 | |
Share based payments | 980 | |
Accretion on asset retirement obligation | 34 | 34 |
Foreign exchange | 13 | |
Forgiveness of interest | (34) | |
Total Non-cash items | $ 887 | $ 501 |