Cover
Cover | 6 Months Ended |
Feb. 28, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Feb. 28, 2022 |
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, City or Town | Toronto |
Entity Address, State or Province | ON |
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 | Feb. 28, 2022 | Aug. 31, 2021 |
Current Assets | ||
Cash | $ 12,939 | $ 13,447 |
Amounts receivable (Note 5) | 540 | 460 |
Prepaid and other assets (Note 6) | 702 | 332 |
Inventory (Note 7) | 1,825 | 1,179 |
Current assets | 16,006 | 15,418 |
Mineral property, plant and equipment (Note 8) | 46,637 | 2,482 |
Exploration and evaluation assets and expenditures (Note 9) | 38,618 | |
Assets | 62,643 | 56,518 |
Current Liabilities | ||
Trade, other payables and accrued liabilities (Note 10) | 5,601 | 5,263 |
Current income tax payable (Note 11) | 151 | |
Derivative warrant liabilities (Note 12) | 4,751 | 2,149 |
Current liabilities | 10,503 | 7,412 |
Asset Retirement Obligation | 2,768 | 2,681 |
Liabilities | 13,271 | 10,093 |
Shareholders’ equity | ||
Share capital (Note 13) | 162,629 | 158,129 |
Share based payment reserve (Note 14) | 7,193 | 5,680 |
Warrants reserve | 1,700 | 1,606 |
Accumulated deficit | (121,437) | (117,457) |
Equity attributable to owners of the Company | 50,085 | 47,958 |
Non-controlling interests (Note 16) | (713) | (1,533) |
Total shareholders’ equity | 49,372 | 46,425 |
Total Shareholders’ Equity and Liabilities | $ 62,643 | $ 56,518 |
Unaudited Interim Condensed C_2
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenues | ||||
Metal sales | $ 3,334 | $ 3,334 | ||
Production costs | (1,050) | (1,050) | ||
Royalty | (268) | (268) | ||
Depreciation | (125) | (125) | ||
Total cost of sales | (1,443) | (1,443) | ||
Gross profit | 1,891 | 1,891 | ||
General and administrative expense (Note 18) | (2,152) | (1,883) | (4,497) | (3,056) |
Financial instrument related cost and other (Note 19) | (427) | 2,525 | (219) | 2,093 |
Accretion on asset retirement obligation | (54) | (35) | (88) | (69) |
Transaction costs on convertible debenture | (641) | (683) | ||
Foreign exchange | (104) | (94) | (86) | (77) |
Interest, net and other expense | (5) | (36) | (10) | (7) |
Net loss before tax | (851) | (164) | (3,009) | (1,799) |
Current income tax expense (Note 11) | (151) | (151) | ||
Net loss and comprehensive loss | (1,002) | (164) | (3,160) | (1,799) |
(Loss) income and comprehensive (loss) income attributable to: | ||||
Parent | (1,958) | 33 | (3,980) | (1,082) |
Non-controlling interests | 956 | (197) | 820 | (717) |
Net loss | $ (1,002) | $ (164) | $ (3,160) | $ (1,799) |
Net (loss) earnings per share attributable to Parent: | ||||
Basic and diluted | $ (0.01) | $ 0 | $ (0.02) | $ (0.01) |
Weighted average number of shares outstanding: | ||||
Basic and diluted | 262,712,781 | 225,250,956 | 258,805,238 | 209,170,350 |
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] | |||||||
Shares issued for cash, net of share issue costs (Note 13) | $ 23,226 | 23,226 | 23,226 | ||||
Issued for cash, net of share issue costs (In Shares) | 38,477,666 | ||||||
Warrants issued | $ (8,710) | 878 | (7,832) | (7,832) | |||
Issued for settlement of convertible debentures | $ 7,015 | 7,015 | 7,015 | ||||
Issued for settlement of convertible debentures (In Shares) | 12,150,447 | ||||||
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 | (1,082) | (1,082) | (717) | (1,799) | |||
Ending balance, value at Feb. 28, 2021 | $ 158,129 | 2,747 | 1,606 | (114,535) | 47,947 | (971) | 46,976 |
Balance, number (in shares) at Feb. 28, 2021 | 254,870,556 | ||||||
IfrsStatementLineItems [Line Items] | |||||||
Share based compensation - common shares (Note 14) | 2,933 | 2,933 | 2,933 | ||||
Net loss for the period | (2,922) | (2,922) | (562) | (3,484) | |||
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(Note 13) | $ 98 | 98 | 98 | ||||
Shares issued for settlement of debts(Note 13) (In Shares) | 165,889 | ||||||
Shares issued for financing (Note 13) | $ 373 | 373 | 373 | ||||
Shares issued for financing (Note 13), (In, Shares) | 909,901 | ||||||
Shares issued for cash, net of share issue costs (Note 13) | $ 3,882 | 3,882 | 3,882 | ||||
Issued for cash, net of share issue costs (In Shares) | 17,948,718 | ||||||
Warrants issued | 94 | 94 | 94 | ||||
Options exercised (Note 13) | $ 147 | 147 | 147 | ||||
Options exercised (Note 13) (In Shares) | 450,000 | ||||||
Share based compensation - common shares (Note 14) | 1,513 | 1,513 | 1,513 | ||||
Net loss for the period | (3,980) | (3,980) | 820 | (3,160) | |||
Ending balance, value at Feb. 28, 2022 | $ 162,629 | $ 7,193 | $ 1,700 | $ (121,437) | $ 50,085 | $ (713) | $ 49,372 |
Balance, number (in shares) at Feb. 28, 2022 | 274,345,064 |
Unaudited Interim Condensed C_4
Unaudited Interim Condensed Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Operating | ||||
Net loss | $ (1,002) | $ (164) | $ (3,160) | $ (1,799) |
Items not involving cash: | ||||
Non-cash items (Note 24) | 786 | (2,445) | 1,673 | (1,944) |
Cost of shares and warrants issuance | 684 | 665 | 684 | 665 |
Changes in non-cash working capital: | ||||
Amounts receivable | (38) | 21 | (80) | (176) |
Inventory | (308) | (80) | (646) | (290) |
Prepaid and other assets | (552) | (75) | (370) | (61) |
Trade, other payables and accrued liabilities | 1,823 | 490 | 337 | 267 |
Current income tax payable | 151 | 151 | ||
Cash provided by (used in) operating activities | 1,544 | (1,588) | (1,411) | (3,338) |
Investing | ||||
Exploration and evaluation assets and expenditures | (1,679) | (2,192) | (3,529) | |
Proceeds from gold sales | 433 | 535 | 1,110 | |
Purchase of mineral property, plant and equipment | (3,109) | (11) | (4,015) | (54) |
Cash used in investing activities | (3,109) | (1,257) | (5,672) | (2,473) |
Financing | ||||
Proceeds from issuance of shares and warrants | 7,147 | 24,400 | 7,147 | 24,400 |
Issue costs | (572) | (1,839) | (572) | (1,839) |
Repayment of leases | (27) | |||
Proceeds from issuance of convertible debentures | 1,000 | |||
Cash provided by financing activities | 6,575 | 22,561 | 6,575 | 23,534 |
Net increase (decrease) in cash | 5,010 | 19,716 | (508) | 17,723 |
Cash, beginning of period | 7,929 | 2,060 | 13,447 | 4,053 |
Cash, end of period | 12,939 | 21,776 | 12,939 | 21,776 |
Non-cash transactions: | ||||
Value of shares issued on conversion of debentures | 5,957 | 7,015 | ||
Value of shares issued on settlement of agent commitment fees | 373 | (80) | 373 | |
Value of shares issued on settlement of debt | $ (75) | $ 98 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Feb. 28, 2022 | |
Nature Of Operations | |
Nature of Operations | 1. Nature of Operations 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, evaluating and producing from its mineral properties. |
Basis of Preparation and Signif
Basis of Preparation and Significant Accounting Policies | 6 Months Ended |
Feb. 28, 2022 | |
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 condensed interim 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 April 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 and clarified 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 a mine and obtaining access to the orebody are considered to be capital development and are capitalized. Expenses incurred after reaching the orebody are regarded as operating development costs and are included in the cost of ore. 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. Amendments to IAS 16, Property Plant and Equipment The Company has early adopted amendments to IAS 16, Property Plant and Equipment Revenue recognition Revenue from the sale of gold is measured based on the agreed gold price related to the spot gold price specified in a contract with a customer. The Company recognizes revenue when the Company transfers control of its gold over to a customer, either in the form of refined gold or gold doré bars, and no further performance obligation is required from the Company. Inventory Inventory classifications include stockpiled ore, in-circuit inventory, finished goods inventory and supplies. The value of all production inventories includes direct production costs and attributable overhead incurred to bring the materials to their current point in the processing cycle. General and administrative costs for the corporate office are not included in any inventories. All inventories are valued at the lower of cost and net realizable value, with net realizable value determined with reference to market prices, less estimated future production costs to convert inventories into saleable form. If carrying value exceeds net realizable value, a write-down is recognized. The write-down may be reversed in a subsequent period if the circumstances which caused the write-down no longer exists. i) Stockpiled ore represents unprocessed ore that has been mined and is available for future processing. Stockpiled ore is measured by estimating the number of tonnes through physical surveys and contained ounces. Stockpiled ore value is based on the costs incurred, including depreciation and applicable mine-site overheads, in bringing the ore to the stockpile. Costs are added to the stockpiled ore based on current mining costs and are removed at the average costs per tonne of ore in the stockpile. ii) In-circuit inventory represents material that is currently being processed to extract the contained gold into a saleable form. The amount of gold in-circuit is determined by assay values and by measure of the various gold bearing materials in the recovery process. The in-circuit gold is valued at the average of the beginning inventory and the costs of material fed into the processing stream plus in-circuit conversion costs including applicable mine-site overheads. iii) Finished goods inventory is saleable gold in the form of doré bars that have been poured. Included in the costs are the direct costs of mining and processing operations as well as direct mine site overheads. iv) Supplies inventories include equipment parts and other consumables required in the mining and ore processing activities and are valued at the lower of average cost and net realizable value. iii) New accounting pronouncements In May 2021, the IASB issued amendments to IAS 12, Income Taxes |
Significant Accounting Judgment
Significant Accounting Judgments, Estimates and Assumptions | 6 Months Ended |
Feb. 28, 2022 | |
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 interim condensed consolidated 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 six months ended February 28, 2022: 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 and interim operation of 360 tpd plant, all of which led to a decision to construct a 1,000+ tpd processing plant 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 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. 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 | 6 Months Ended |
Feb. 28, 2022 | |
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 February 28, 2021, using the period end exchange rates of 1.2733 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 February 28, 2021 unaudited interim condensed consolidated statement of financial position: Schedule of change in presentation currency As at February 28, 2021 Reported at February 28, 2021 in CAD Presentation currency change Restated at February 28, 2021 in USD Consolidated statement of financial position Cash 27,729 (5,953 ) 21,776 Other current assets 2,392 (513 ) 1,879 Non-current assets 45,331 (9,731 ) 35,600 Total assets 75,452 (16,197 ) 59,255 Current liabilities (12,075 ) 2,553 (9,522 ) Long term debt (3,510 ) 753 (2,757 ) Total liabilities (15,585 ) 3,306 (12,279 ) Share capital 207,804 (49,675 ) 158,129 Reserves 5,602 (1,249 ) 4,353 Accumulated deficit and other comprehensive income (152,249 ) 37,714 (114,535 ) Non-controlling interests (1,290 ) 319 (971 ) Total shareholders’ equity 59,867 (12,891 ) 46,976 The change in presentation currency resulted in the following impact on the February 28, 2021 unaudited interim condensed consolidated statement of comprehensive loss: Schedule of consolidated statement of comprehensive loss Reported at February 28, 2021 in CAD Three months Presentation currency change Reported at February 28, 2021 in USD Three months General and administrative expense (2,414 ) 531 (1,883 ) Other income (expense) 2,859 (1,140 ) 1,719 Net loss and comprehensive loss 445 (609 ) (164 ) Earnings per share – basic and diluted 0.01 (0.01 ) (0.00 ) Reported at February 28, 2021 in CAD Six months Presentation currency change Reported at February 28, 2021 in USD Six months General and administrative expense (3,958 ) 902 (3,056 ) Other income (expense) 2,379 (1,122 ) 1,257 Net loss and comprehensive loss (1,579 ) (220 ) (1,799 ) Earnings per share – basic and diluted (0.01 ) - (0.01 ) The change in presentation currency resulted in the following impact on the February 28, 2021 consolidated statement of cash flows: Schedule of consolidated statement of cash flows Reported at February 28, 2021 in CAD Presentation currency change Restated at February 28, 2021 in USD Cash used in operating activities (5,227 ) 1,889 (3,338 ) Cash used in investing activities (3,155 ) 682 (2,473 ) Cash provided by financing activities 30,817 (7,283 ) 23,534 Net increase in cash 22,435 (4,712 ) 17,723 Cash beginning of period 5,294 (1,241 ) 4,053 Cash end of period 27,729 (5,953 ) 21,776 |
Amounts receivable
Amounts receivable | 6 Months Ended |
Feb. 28, 2022 | |
Amounts receivable | 5. Amounts receivable The Company’s amounts receivable arise from two main sources: (i) receivables due from related parties, and (ii) 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 February 28, 2022 August 31, 2021 HST and VAT receivable $ 500 $ 432 Other 40 28 Amounts Receivable $ 540 $ 460 Below is an aged analysis of the Company’s amounts receivable: Schedule of Aged analysis of Receivables February 28, 2022 August 31, 2021 Less than 1 month $ 26 $ 23 1 to 3 months 45 43 Over 3 months 469 394 Total Amounts Receivable $ 540 $ 460 At February 28, 2022, the Company anticipates full recovery of these amounts and therefore no impairment has been recorded against these receivables. The credit risk on the receivables is further discussed in Note 21. The Company holds no collateral for any receivable amounts outstanding as at February 28, 2022. |
Prepaid and other assets
Prepaid and other assets | 6 Months Ended |
Feb. 28, 2022 | |
Prepaid and other assets | 6. Prepaid and other assets Schedule of Prepaid and Other Assets February 28, 2022 August 31, 2021 Insurance $ 48 $ 54 Listing fees 76 32 Drilling - 200 Financing fees 470 - Royalties and other 108 46 Total Prepaid Expenses $ 702 $ 332 |
Inventory
Inventory | 6 Months Ended |
Feb. 28, 2022 | |
Inventory | 7. Inventory Inventory consists of stockpiled ore, work in progress, finished goods and supplies consumed during the course of exploration, development and production from its operations. IAS 2 requires allocation of fixed and variable production overheads that are incurred in converting materials into finished goods. The following is a breakdown of items in inventory: Schedule of Inventory February 28, 2022 August 31, 2021 Stockpiled ore $ 1,309 $ 712 In-circuit 213 350 Finished Goods 112 - Supplies 191 117 Total Inventory $ 1,825 $ 1,179 |
Mineral property, plant and equ
Mineral property, plant and equipment | 6 Months Ended |
Feb. 28, 2022 | |
Mineral Property Plant And Equipment | |
Mineral property, plant and equipment | 8. Mineral property, plant and equipment Schedule of continuity of expenditures on mineral properties Construction in progress Processing plant and related infrastructure Machinery and equipment 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 1 2,493 1,017 187 29 3,727 Transfer from E&E assets 40,563 - - - 40,563 As at February 28, 2022 $ 43,056 $ 4,296 $ 1,141 $ 111 $ 48,605 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 - 84 49 2 135 As at February 28, 2022 $ - $ 1,423 $ 522 $ 22 $ 1,968 Net book value As at August 31, 2021 $ - $ 1,939 $ 481 $ 62 $ 2,482 As at February 28, 2022 $ 43,056 $ 2,873 $ 619 $ 89 $ 46,637 1 Included in Construction in progress is $2.3 million of long-term VAT receivable related to expenditures incurred in developing the Buckreef Gold Project. 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 | 6 Months Ended |
Feb. 28, 2022 | |
Exploration and evaluation assets and expenditures | 9. 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: 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. 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 accru
Trade, other payables and accrued liabilities | 6 Months Ended |
Feb. 28, 2022 | |
Trade, other payables and accrued liabilities | 10. 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 February 28, 2022 August 31, 2021 Less than 1 month $ 2,119 $ 2,161 1 to 3 months 2,120 119 Over 3 months 1,362 2,983 Total Trade, Other Payables and Accrued Liabilities $ 5,601 $ 5,263 |
Income tax
Income tax | 6 Months Ended |
Feb. 28, 2022 | |
Income tax | 11. Income tax Income tax expense is recognized based on management’s estimate of the weighted average annual income tax rate expected for the full financial year. During the three months ended February 28, 2022, the Company recorded net income at its Buckreef Gold Project and recognized a current income tax payable of $ 151 |
Derivative warrant liabilities
Derivative warrant liabilities | 6 Months Ended |
Feb. 28, 2022 | |
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). During the quarter ended February 28, 2022, the Company issued warrants for the Company’s common shares pursuant to a financing in January 2022 (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 Warrants issued January 26, 2022 (Note 15) 2,665 Fair value adjustment (63 ) Balance at February 28, 2022 $ 4,751 Derivative warrant liabilities of $ 4.8 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 February 28, 2022 August 31, 2021 Share price $ 0.41 0.41 Risk-free interest rate 1.18 1.70 0.19 0.67 Dividend yield 0 % 0 % Expected volatility 52 56 60 70 Remaining term (in years) 1.4 4.9 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 | 6 Months Ended |
Feb. 28, 2022 | |
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 shares $ (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 Issued for exercising of stock option 450,000 147 Issued for equity line of credit 909,901 373 Issued for financing, net of share issue costs 17,948,718 3,882 Balance at February 28, 2022 274,345,064 $ 162,629 Activity during the six-month period ended February 28, 2022: On September 30, 2021, the Company issued 165,889 common shares at a fair value of $ 98 98 On January 20, 2022, the Company entered into a purchase agreement, where the Company, in its sole discretion, will have the right from time to time over a 36-month period to sell up to $ 10 909,901 373 On January 26, 2022, the Company completed the sale of 17,948,718 common shares together with warrants to purchase 17,948,718 common shares for $7.0 million. The common shares and warrants were issued at $0.39 for each common share and a purchase warrant with the right of each whole warrant to purchase one common share at $0.44 for a period of five years from the issue date. The Company also issued 628,205 placement agent warrants with the same terms and incurred commission and other costs of $0.7 million out of which $0.09 million was allocated to the warrants and expensed in the consolidated statement of comprehensive loss. The warrants issued with the common shares are classified as a liability (Note 12). The placement agent warrants are considered an equity-settled share-based payment transaction and are measured at their fair value and classified as equity. 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 and expensed in the statement of comprehensive loss. On December 23, 2020, the Company completed the sale of 5,554,588 2,777,268 0.54 1.50 During the year ended August 31, 2021 $ 7.0 million of Tranche A Convertible Debentures, representing the entire outstanding balance, were converted and retired resulting in the issuance of 12,150,447 common shares of the Company. The fair value of the convertible debentures at the dates of conversion was in aggregate of $ 7.0 million. |
Share based payment reserve
Share based payment reserve | 6 Months Ended |
Feb. 28, 2022 | |
Share based payment reserve | 14. Share based payment reserve Schedule of reserve for share based payments Period/year ended February 28, 2022 August 31, 2021 Balance at beginning of period/year $ 5,680 $ 2,748 Share based compensation – Common shares (Note 17) 1,513 2,933 Transfer of reserve on exercise of options - (1 ) Balance at end of period/year $ 7,193 $ 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 on August 16, 2019, subsequently updated and approved by the shareholders on February 25, 2022. 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 February 28, 2022, the Company had 14,910,506 12,513,055 The continuity of outstanding stock options for the six-month period ended February 28, 2022 and year ended August 31, 2021 is as follows: Schedule of continuity of outstanding stock options Number of stock options Weighted average Balance – August 31, 2020 7,352,000 CAD $ 0.41 Options exercised (1,000 ) CAD $ 0.40 Balance – August 31, 2021 7,351,000 CAD $ 0.41 Options exercised (450,000 ) CAD $ 0.42 Balance – February 28, 2022 6,901,000 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 3,519,000 3,519,000 October 11, 2026 4.6 CAD $ 0.43 3,282,000 3,282,000 September 29, 2026 4.6 CAD $ 0.35 100,000 100,000 January 2, 2027 4.8 CAD $ 0.41 6,901,000 6,901,000 4.6 (1) Total represents weighted average. |
Warrants reserve
Warrants reserve | 6 Months Ended |
Feb. 28, 2022 | |
Warrants reserve | 15. Warrants reserve Warrant issuances: Activity during the six-month period ended February 28, 2022: During the six-month period ended February 28, 2022, the Company issued 17,948,718 0.44 The 17,948,718 2.67 0 1.65 52 60 The 628,205 0.09 0 1.65 52 60 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 0.4 0 0.18 69 36 The 16,461,539 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 six months ended February 28, 2022 and year ended August 31, 2021 is as follows: Schedule of Reserve for warrants Number of warrants 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 issued 18,576,923 0.44 Warrants expired (287,901 ) 0.93 Balance – February 28, 2022 41,970,074 0.72 At February 28, 2022, the following warrants and compensation warrants were outstanding: Schedule of warrants and compensation warrants Number of Warrants 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 Private placement financing warrants – January 26, 2022 17,948,718 $ 0.44 January 26, 2027 Private placement financing placement agent warrants – January 26, 2022 628,205 $ 0.44 January 26, 2027 Balance, February 28, 2022 41,970,074 - - The outstanding warrants have a weighted average exercise price of $ 0.72 4.1 |
Non-controlling interest
Non-controlling interest | 6 Months Ended |
Feb. 28, 2022 | |
Non-controlling interest | 16. Non-controlling interest The changes to the non-controlling interest for the six-month period ended February 28, 2022 and year ended August 31, 2021 are as follows: Schedule of Changes to the non-controlling interest Year ended February 28, 2022 August 31, 2021 Balance at beginning of period/year $ (1,533 ) $ (254 ) Non-controlling interest’s 45% share of Buckreef Gold’s comprehensive income (loss) 820 (1,279 ) Balance at end of period/year $ (713 ) $ (1,533 ) The following is summarized financial information for Buckreef Gold: Schedule of summarized financial information February 28, 2022 August 31, 2021 Current assets $ 2,961 $ 2,920 Long term assets 46,528 40,353 Current liabilities (2,951 ) (2,908 ) Asset retirement obligation (2,768 ) (2,681 ) Advances from parent (37,490 ) (33,728 ) Revenue 3,334 - Comprehensive gain (loss) for the period/year $ 1,735 $ (2,841 ) |
Related party transactions
Related party transactions | 6 Months Ended |
Feb. 28, 2022 | |
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 February 28, Three months February 28, 2021 Six months ended 2022 Six months ended February 28, 2021 Remuneration 1 $ (429 ) $ (705 ) $ (828 ) $ (915 ) Share based payments (533 ) - (1,513 ) - Total $ (962 ) $ (705 ) $ (2,341 ) $ (915 ) (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 February 28, 2022, included in trade and other payables is $ 0.3 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 1.5 |
General and administrative expe
General and administrative expense | 6 Months Ended |
Feb. 28, 2022 | |
General and administrative expense | 18. General and administrative expense Schedule of General and Administrative expense Three months February 28, 2022 Three months February 28, 2021 Six months ended February 28, 2022 Six months ended February 28, 2021 Directors’ fees $ (114 ) $ (53 ) $ (187 ) $ (116 ) Office and general (203 ) (210 ) (514 ) (384 ) Shareholder information (184 ) (128 ) (297 ) (199 ) Professional fees (163 ) (231 ) (315 ) (566 ) Salaries, benefits and consulting (648 ) (1,194 ) (1,321 ) (1,703 ) Severance (241 ) - (241 ) - Share based payments (Note 17) (533 ) - (1,513 ) - Travel and accommodation (61 ) (67 ) (104 ) (88 ) Field, camp and exploration costs (5 ) - (5 ) - General and administrative expense $ (2,152 ) $ (1,883 ) $ (4,497 ) $ (3,056 ) |
Financial instrument related co
Financial instrument related costs and other | 6 Months Ended |
Feb. 28, 2022 | |
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 February 28, 2022 Three months ended February 28, 2021 Six months ended February 28, 2022 Six months ended February 28, 2021 (Loss) gain on derivative warrant liabilities $ (145 ) $ 3,425 $ 63 $ 3,662 Transaction costs on derivative warrant liabilities (282 ) (655 ) (282 ) (655 ) Change in fair value of convertible debentures - (236 ) - (904 ) Withholding tax costs - (9 ) - (10 ) Total financial instrument related costs and other $ (427 ) $ 2,525 $ (219 ) $ 2,093 |
Management of Capital
Management of Capital | 6 Months Ended |
Feb. 28, 2022 | |
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 six-month period ended February 28, 2022. 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 February 28, 2022 totaled $ 50.0 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 | 6 Months Ended |
Feb. 28, 2022 | |
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 February 28, 2022 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 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 (February 28, 2022: $0.41, August 31, 2021: $0.41) · Risk-free interest rate (February 28, 2022: 0.42% to 1.01%, August 31, 2021: 0.19% to 0.67%) · Dividend yield (February 28, 2022: 0%, August 31, 2021: 0%) Key unobservable inputs · Expected volatility (February 28, 2022: 60%, August 31, 2021: 60% to 70%) 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 February 28, 2022 Comprehensive Loss Increase Decrease Expected volatility (20% movement vs. the model input) $ 1,120 $ (1,143 ) 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 February 28, 2022, 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 February 28, 2022, the Company had cash of $12.9 million, current assets of $16.0 million and current liabilities of $10.5 million. Current working capital of the Company is $ 5.5 4.8 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 February 28, 2022, 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 | 6 Months Ended |
Feb. 28, 2022 | |
Segmented information | 22. Segmented information Operating Segments At February 22, 2022 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. During the three and six months ended February 28, 2022, revenue from one customer amounted to $1.0 million (three and six months 2021 - $nil). Information concerning the Company’s geographic locations is as follows: Schedule of operating segments Three and six months ended Three and six months ended Revenue Canada $ - $ - Tanzania 3,334 - $ 3,334 $ - As at February 28, 2022 As at August 31, 2021 Non-current assets Canada $ 26 $ 28 Tanzania 46,611 41,072 $ 46,637 $ 41,100 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Feb. 28, 2022 | |
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 February 28, 2022 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, no provisions for the settlement of outstanding litigation and potential claims have been accrued. |
Non-cash items
Non-cash items | 6 Months Ended |
Feb. 28, 2022 | |
Non-cash Items | |
Non-cash items | 24. Non-cash items Schedule of Non-cash items Three months Three months ended February 28, 2021 Six months ended February 28, 2022 Six months ended February 28, 2021 Depreciation $ (54 ) $ (68 ) $ (135 ) $ (124 ) (Loss) gain on derivative warrant liabilities (145 ) 2,771 63 3,007 Change in fair value of convertible debentures - (236 ) - (904 ) Share based payments (533 ) - (1,513 ) - Accretion on asset retirement obligation (54 ) (35 ) (88 ) (69 ) Foreign exchange - 13 - - Forgiveness of interest - - - 34 Total Non-cash items $ (786 ) $ 2,445 $ (1,673 ) $ 1,944 |
Basis of Preparation and Sign_2
Basis of Preparation and Significant Accounting Policies (Policies) | 6 Months Ended |
Feb. 28, 2022 | |
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 condensed interim 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 April 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 and clarified 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 a mine and obtaining access to the orebody are considered to be capital development and are capitalized. Expenses incurred after reaching the orebody are regarded as operating development costs and are included in the cost of ore. 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. Amendments to IAS 16, Property Plant and Equipment The Company has early adopted amendments to IAS 16, Property Plant and Equipment Revenue recognition Revenue from the sale of gold is measured based on the agreed gold price related to the spot gold price specified in a contract with a customer. The Company recognizes revenue when the Company transfers control of its gold over to a customer, either in the form of refined gold or gold doré bars, and no further performance obligation is required from the Company. Inventory Inventory classifications include stockpiled ore, in-circuit inventory, finished goods inventory and supplies. The value of all production inventories includes direct production costs and attributable overhead incurred to bring the materials to their current point in the processing cycle. General and administrative costs for the corporate office are not included in any inventories. All inventories are valued at the lower of cost and net realizable value, with net realizable value determined with reference to market prices, less estimated future production costs to convert inventories into saleable form. If carrying value exceeds net realizable value, a write-down is recognized. The write-down may be reversed in a subsequent period if the circumstances which caused the write-down no longer exists. i) Stockpiled ore represents unprocessed ore that has been mined and is available for future processing. Stockpiled ore is measured by estimating the number of tonnes through physical surveys and contained ounces. Stockpiled ore value is based on the costs incurred, including depreciation and applicable mine-site overheads, in bringing the ore to the stockpile. Costs are added to the stockpiled ore based on current mining costs and are removed at the average costs per tonne of ore in the stockpile. ii) In-circuit inventory represents material that is currently being processed to extract the contained gold into a saleable form. The amount of gold in-circuit is determined by assay values and by measure of the various gold bearing materials in the recovery process. The in-circuit gold is valued at the average of the beginning inventory and the costs of material fed into the processing stream plus in-circuit conversion costs including applicable mine-site overheads. iii) Finished goods inventory is saleable gold in the form of doré bars that have been poured. Included in the costs are the direct costs of mining and processing operations as well as direct mine site overheads. iv) Supplies inventories include equipment parts and other consumables required in the mining and ore processing activities and are valued at the lower of average cost and net realizable value. |
New accounting pronouncements | iii) New accounting pronouncements In May 2021, the IASB issued amendments to IAS 12, Income Taxes |
Change in Presentation Curren_2
Change in Presentation Currency (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Change In Presentation Currency | |
Schedule of change in presentation currency | Schedule of change in presentation currency As at February 28, 2021 Reported at February 28, 2021 in CAD Presentation currency change Restated at February 28, 2021 in USD Consolidated statement of financial position Cash 27,729 (5,953 ) 21,776 Other current assets 2,392 (513 ) 1,879 Non-current assets 45,331 (9,731 ) 35,600 Total assets 75,452 (16,197 ) 59,255 Current liabilities (12,075 ) 2,553 (9,522 ) Long term debt (3,510 ) 753 (2,757 ) Total liabilities (15,585 ) 3,306 (12,279 ) Share capital 207,804 (49,675 ) 158,129 Reserves 5,602 (1,249 ) 4,353 Accumulated deficit and other comprehensive income (152,249 ) 37,714 (114,535 ) Non-controlling interests (1,290 ) 319 (971 ) Total shareholders’ equity 59,867 (12,891 ) 46,976 |
Schedule of consolidated statement of comprehensive loss | Schedule of consolidated statement of comprehensive loss Reported at February 28, 2021 in CAD Three months Presentation currency change Reported at February 28, 2021 in USD Three months General and administrative expense (2,414 ) 531 (1,883 ) Other income (expense) 2,859 (1,140 ) 1,719 Net loss and comprehensive loss 445 (609 ) (164 ) Earnings per share – basic and diluted 0.01 (0.01 ) (0.00 ) Reported at February 28, 2021 in CAD Six months Presentation currency change Reported at February 28, 2021 in USD Six months General and administrative expense (3,958 ) 902 (3,056 ) Other income (expense) 2,379 (1,122 ) 1,257 Net loss and comprehensive loss (1,579 ) (220 ) (1,799 ) 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 February 28, 2021 in CAD Presentation currency change Restated at February 28, 2021 in USD Cash used in operating activities (5,227 ) 1,889 (3,338 ) Cash used in investing activities (3,155 ) 682 (2,473 ) Cash provided by financing activities 30,817 (7,283 ) 23,534 Net increase in cash 22,435 (4,712 ) 17,723 Cash beginning of period 5,294 (1,241 ) 4,053 Cash end of period 27,729 (5,953 ) 21,776 |
Amounts receivable (Tables)
Amounts receivable (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of Summary of Receivables | Schedule of Summary of Receivables February 28, 2022 August 31, 2021 HST and VAT receivable $ 500 $ 432 Other 40 28 Amounts Receivable $ 540 $ 460 |
Schedule of Aged analysis of Receivables | Schedule of Aged analysis of Receivables February 28, 2022 August 31, 2021 Less than 1 month $ 26 $ 23 1 to 3 months 45 43 Over 3 months 469 394 Total Amounts Receivable $ 540 $ 460 |
Prepaid and other assets (Table
Prepaid and other assets (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of Prepaid and Other Assets | Schedule of Prepaid and Other Assets February 28, 2022 August 31, 2021 Insurance $ 48 $ 54 Listing fees 76 32 Drilling - 200 Financing fees 470 - Royalties and other 108 46 Total Prepaid Expenses $ 702 $ 332 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of Inventory | Schedule of Inventory February 28, 2022 August 31, 2021 Stockpiled ore $ 1,309 $ 712 In-circuit 213 350 Finished Goods 112 - Supplies 191 117 Total Inventory $ 1,825 $ 1,179 |
Mineral property, plant and e_2
Mineral property, plant and equipment (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Mineral Property Plant And Equipment | |
Schedule of continuity of expenditures on mineral properties | Schedule of continuity of expenditures on mineral properties Construction in progress Processing plant and related infrastructure Machinery and equipment 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 1 2,493 1,017 187 29 3,727 Transfer from E&E assets 40,563 - - - 40,563 As at February 28, 2022 $ 43,056 $ 4,296 $ 1,141 $ 111 $ 48,605 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 - 84 49 2 135 As at February 28, 2022 $ - $ 1,423 $ 522 $ 22 $ 1,968 Net book value As at August 31, 2021 $ - $ 1,939 $ 481 $ 62 $ 2,482 As at February 28, 2022 $ 43,056 $ 2,873 $ 619 $ 89 $ 46,637 |
Exploration and evaluation as_2
Exploration and evaluation assets and expenditures (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
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) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of Aged analysis of Trade, Other Payables and Accrued Liabilities | Schedule of Aged analysis of Trade, Other Payables and Accrued Liabilities February 28, 2022 August 31, 2021 Less than 1 month $ 2,119 $ 2,161 1 to 3 months 2,120 119 Over 3 months 1,362 2,983 Total Trade, Other Payables and Accrued Liabilities $ 5,601 $ 5,263 |
Derivative warrant liabilities
Derivative warrant liabilities (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
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 Warrants issued January 26, 2022 (Note 15) 2,665 Fair value adjustment (63 ) Balance at February 28, 2022 $ 4,751 |
Schedule of assumptions fair value of derivative warrant liabilities | Schedule of assumptions fair value of derivative warrant liabilities February 28, 2022 August 31, 2021 Share price $ 0.41 0.41 Risk-free interest rate 1.18 1.70 0.19 0.67 Dividend yield 0 % 0 % Expected volatility 52 56 60 70 Remaining term (in years) 1.4 4.9 1.9 4.4 |
Share capital (Tables)
Share capital (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of Share Capital Activity | Schedule of Share Capital Activity Number of shares $ (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 Issued for exercising of stock option 450,000 147 Issued for equity line of credit 909,901 373 Issued for financing, net of share issue costs 17,948,718 3,882 Balance at February 28, 2022 274,345,064 $ 162,629 |
Share based payment reserve (Ta
Share based payment reserve (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of reserve for share based payments | Schedule of reserve for share based payments Period/year ended February 28, 2022 August 31, 2021 Balance at beginning of period/year $ 5,680 $ 2,748 Share based compensation – Common shares (Note 17) 1,513 2,933 Transfer of reserve on exercise of options - (1 ) Balance at end of period/year $ 7,193 $ 5,680 |
Schedule of continuity of outstanding stock options | Schedule of continuity of outstanding stock options Number of stock options Weighted average Balance – August 31, 2020 7,352,000 CAD $ 0.41 Options exercised (1,000 ) CAD $ 0.40 Balance – August 31, 2021 7,351,000 CAD $ 0.41 Options exercised (450,000 ) CAD $ 0.42 Balance – February 28, 2022 6,901,000 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 3,519,000 3,519,000 October 11, 2026 4.6 CAD $ 0.43 3,282,000 3,282,000 September 29, 2026 4.6 CAD $ 0.35 100,000 100,000 January 2, 2027 4.8 CAD $ 0.41 6,901,000 6,901,000 4.6 (1) Total represents weighted average. |
Warrants reserve (Tables)
Warrants reserve (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of Reserve for warrants | Schedule of Reserve for warrants Number of warrants 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 issued 18,576,923 0.44 Warrants expired (287,901 ) 0.93 Balance – February 28, 2022 41,970,074 0.72 |
Schedule of warrants and compensation warrants | Schedule of warrants and compensation warrants Number of Warrants 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 Private placement financing warrants – January 26, 2022 17,948,718 $ 0.44 January 26, 2027 Private placement financing placement agent warrants – January 26, 2022 628,205 $ 0.44 January 26, 2027 Balance, February 28, 2022 41,970,074 - - |
Non-controlling interest (Table
Non-controlling interest (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of Changes to the non-controlling interest | Schedule of Changes to the non-controlling interest Year ended February 28, 2022 August 31, 2021 Balance at beginning of period/year $ (1,533 ) $ (254 ) Non-controlling interest’s 45% share of Buckreef Gold’s comprehensive income (loss) 820 (1,279 ) Balance at end of period/year $ (713 ) $ (1,533 ) |
Schedule of summarized financial information | Schedule of summarized financial information February 28, 2022 August 31, 2021 Current assets $ 2,961 $ 2,920 Long term assets 46,528 40,353 Current liabilities (2,951 ) (2,908 ) Asset retirement obligation (2,768 ) (2,681 ) Advances from parent (37,490 ) (33,728 ) Revenue 3,334 - Comprehensive gain (loss) for the period/year $ 1,735 $ (2,841 ) |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of Related Parties Compensation | Schedule of Related Parties Compensation Three months February 28, Three months February 28, 2021 Six months ended 2022 Six months ended February 28, 2021 Remuneration 1 $ (429 ) $ (705 ) $ (828 ) $ (915 ) Share based payments (533 ) - (1,513 ) - Total $ (962 ) $ (705 ) $ (2,341 ) $ (915 ) |
General and administrative ex_2
General and administrative expense (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of General and Administrative expense | Schedule of General and Administrative expense Three months February 28, 2022 Three months February 28, 2021 Six months ended February 28, 2022 Six months ended February 28, 2021 Directors’ fees $ (114 ) $ (53 ) $ (187 ) $ (116 ) Office and general (203 ) (210 ) (514 ) (384 ) Shareholder information (184 ) (128 ) (297 ) (199 ) Professional fees (163 ) (231 ) (315 ) (566 ) Salaries, benefits and consulting (648 ) (1,194 ) (1,321 ) (1,703 ) Severance (241 ) - (241 ) - Share based payments (Note 17) (533 ) - (1,513 ) - Travel and accommodation (61 ) (67 ) (104 ) (88 ) Field, camp and exploration costs (5 ) - (5 ) - General and administrative expense $ (2,152 ) $ (1,883 ) $ (4,497 ) $ (3,056 ) |
Financial instrument related _2
Financial instrument related costs and other (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
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 February 28, 2022 Three months ended February 28, 2021 Six months ended February 28, 2022 Six months ended February 28, 2021 (Loss) gain on derivative warrant liabilities $ (145 ) $ 3,425 $ 63 $ 3,662 Transaction costs on derivative warrant liabilities (282 ) (655 ) (282 ) (655 ) Change in fair value of convertible debentures - (236 ) - (904 ) Withholding tax costs - (9 ) - (10 ) Total financial instrument related costs and other $ (427 ) $ 2,525 $ (219 ) $ 2,093 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of derivative warrant liabilities and convertible debentures | Schedule of derivative warrant liabilities and convertible debentures Type Valuation Technique Key Inputs 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 (February 28, 2022: $0.41, August 31, 2021: $0.41) · Risk-free interest rate (February 28, 2022: 0.42% to 1.01%, August 31, 2021: 0.19% to 0.67%) · Dividend yield (February 28, 2022: 0%, August 31, 2021: 0%) Key unobservable inputs · Expected volatility (February 28, 2022: 60%, August 31, 2021: 60% to 70%) |
Schedule of significant unobservable input | Schedule of significant unobservable input Derivative Warrant Liabilities February 28, 2022 Comprehensive Loss Increase Decrease Expected volatility (20% movement vs. the model input) $ 1,120 $ (1,143 ) |
Segmented information (Tables)
Segmented information (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Schedule of operating segments | Schedule of operating segments Three and six months ended Three and six months ended Revenue Canada $ - $ - Tanzania 3,334 - $ 3,334 $ - As at February 28, 2022 As at August 31, 2021 Non-current assets Canada $ 26 $ 28 Tanzania 46,611 41,072 $ 46,637 $ 41,100 |
Non-cash items (Tables)
Non-cash items (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Non-cash Items | |
Schedule of Non-cash items | Schedule of Non-cash items Three months Three months ended February 28, 2021 Six months ended February 28, 2022 Six months ended February 28, 2021 Depreciation $ (54 ) $ (68 ) $ (135 ) $ (124 ) (Loss) gain on derivative warrant liabilities (145 ) 2,771 63 3,007 Change in fair value of convertible debentures - (236 ) - (904 ) Share based payments (533 ) - (1,513 ) - Accretion on asset retirement obligation (54 ) (35 ) (88 ) (69 ) Foreign exchange - 13 - - Forgiveness of interest - - - 34 Total Non-cash items $ (786 ) $ 2,445 $ (1,673 ) $ 1,944 |
Change in Presentation Curren_3
Change in Presentation Currency (Details) $ in Thousands, $ in Thousands | Feb. 28, 2022USD ($) | Nov. 30, 2021USD ($) | Aug. 31, 2021USD ($) | Feb. 28, 2021USD ($) | Feb. 28, 2021CAD ($) | Nov. 30, 2020USD ($) | Aug. 31, 2020USD ($) | Aug. 31, 2020CAD ($) |
IfrsStatementLineItems [Line Items] | ||||||||
Cash | $ 12,939 | $ 7,929 | $ 13,447 | $ 2,060 | $ 4,053 | |||
Non-current assets | 46,637 | 41,100 | ||||||
Total assets | 62,643 | 56,518 | ||||||
Current liabilities | 10,503 | 7,412 | ||||||
Share capital | 162,629 | 158,129 | ||||||
Reserves | 7,193 | 5,680 | ||||||
Non-controlling interests (Note 21) | (713) | (1,533) | ||||||
Total shareholders' equity | $ 49,372 | $ 46,425 | $ 46,976 | 24,869 | ||||
Previously Reported [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Cash | $ 27,729 | $ 5,294 | ||||||
Other current assets | 2,392 | |||||||
Non-current assets | 45,331 | |||||||
Total assets | 75,452 | |||||||
Current liabilities | (12,075) | |||||||
Long term debt | (3,510) | |||||||
Total liabilities | (15,585) | |||||||
Share capital | 207,804 | |||||||
Reserves | 5,602 | |||||||
Accumulated deficit and other comprehensive income | (152,249) | |||||||
Non-controlling interests (Note 21) | (1,290) | |||||||
Total shareholders' equity | $ 59,867 | |||||||
Presentation Currency Change [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Cash | (5,953) | (1,241) | ||||||
Other current assets | (513) | |||||||
Non-current assets | (9,731) | |||||||
Total assets | (16,197) | |||||||
Current liabilities | 2,553 | |||||||
Long term debt | 753 | |||||||
Total liabilities | 3,306 | |||||||
Share capital | (49,675) | |||||||
Reserves | (1,249) | |||||||
Accumulated deficit and other comprehensive income | 37,714 | |||||||
Non-controlling interests (Note 21) | 319 | |||||||
Total shareholders' equity | (12,891) | |||||||
Restateds [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Cash | 21,776 | $ 4,053 | ||||||
Other current assets | 1,879 | |||||||
Non-current assets | 35,600 | |||||||
Total assets | 59,255 | |||||||
Current liabilities | (9,522) | |||||||
Long term debt | (2,757) | |||||||
Total liabilities | (12,279) | |||||||
Share capital | 158,129 | |||||||
Reserves | 4,353 | |||||||
Accumulated deficit and other comprehensive income | (114,535) | |||||||
Non-controlling interests (Note 21) | (971) | |||||||
Total shareholders' equity | $ 46,976 |
Change in Presentation Curren_4
Change in Presentation Currency (Details 1) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2022USD ($) | Feb. 28, 2021USD ($)$ / shares | Feb. 28, 2021CAD ($)$ / shares | Feb. 28, 2022USD ($) | Feb. 28, 2021USD ($)$ / shares | Feb. 28, 2021CAD ($)$ / shares | |
IfrsStatementLineItems [Line Items] | ||||||
General and administrative expense | $ (2,152) | $ (1,883) | $ (4,497) | $ (3,056) | ||
Net loss and comprehensive loss | $ (851) | (164) | $ (3,009) | (1,799) | ||
Previously Reported [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
General and administrative expense | $ (2,414) | $ (3,958) | ||||
Other income (expenses) | 2,859 | 2,379 | ||||
Net loss and comprehensive loss | $ 445 | $ (1,579) | ||||
Earnings per share - basic and diluted | $ / shares | $ 0.01 | $ (0.01) | ||||
Presentation Currency Change [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
General and administrative expense | 531 | 902 | ||||
Other income (expenses) | (1,140) | (1,122) | ||||
Net loss and comprehensive loss | $ (609) | $ (220) | ||||
Earnings per share - basic and diluted | $ / shares | $ (0.01) | |||||
Restateds [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
General and administrative expense | $ (1,883) | $ (3,056) | ||||
Other income (expenses) | 1,719 | 1,257 | ||||
Net loss and comprehensive loss | $ (164) | $ (1,799) | ||||
Earnings per share - basic and diluted | $ / shares | $ 0 | $ (0.01) |
Change in Presentation Curren_5
Change in Presentation Currency (Details 2) $ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2022USD ($) | Feb. 28, 2021USD ($) | Feb. 28, 2022USD ($) | Feb. 28, 2021USD ($) | Feb. 28, 2021CAD ($) | |
IfrsStatementLineItems [Line Items] | |||||
Cash used in operating activities | $ 1,544 | $ (1,588) | $ (1,411) | $ (3,338) | |
Cash used in investing activities | (3,109) | (1,257) | (5,672) | (2,473) | |
Cash provided by financing activities | 6,575 | 22,561 | 6,575 | 23,534 | |
Net increase in cash | 5,010 | 19,716 | (508) | 17,723 | |
Cash, beginning of period | 7,929 | 2,060 | 13,447 | 4,053 | |
Cash, end of year | $ 12,939 | $ 12,939 | |||
Previously Reported [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash used in operating activities | $ (5,227) | ||||
Cash used in investing activities | (3,155) | ||||
Cash provided by financing activities | 30,817 | ||||
Net increase in cash | 22,435 | ||||
Cash, beginning of period | 5,294 | ||||
Cash, end of year | $ 27,729 | ||||
Presentation Currency Change [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash used in operating activities | 1,889 | ||||
Cash used in investing activities | 682 | ||||
Cash provided by financing activities | (7,283) | ||||
Net increase in cash | (4,712) | ||||
Cash, beginning of period | (1,241) | ||||
Cash, end of year | (5,953) | (5,953) | |||
Restateds [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash used in operating activities | (3,338) | ||||
Cash used in investing activities | (2,473) | ||||
Cash provided by financing activities | 23,534 | ||||
Net increase in cash | 17,723 | ||||
Cash, beginning of period | 4,053 | ||||
Cash, end of year | $ 21,776 | $ 21,776 |
Amounts receivable (Details)
Amounts receivable (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
HST and VAT receivable | $ 500 | $ 432 |
Other | 40 | 28 |
Amounts Receivable | $ 540 | $ 460 |
Amounts receivable (Details 1)
Amounts receivable (Details 1) - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Other receivables | $ 540 | $ 460 |
Not later than one month [member] | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 26 | 23 |
Later than one month and not later than three months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 45 | 394 |
Later than three months and not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | $ 469 | $ 43 |
Prepaid and Other Assets (Detai
Prepaid and Other Assets (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
Insurance | $ 48 | $ 54 |
Listing fees | 76 | 32 |
Drilling | 200 | |
Financing fees | 470 | |
Royalties and other | 108 | 46 |
Total Prepaid Expenses | $ 702 | $ 332 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
Stockpiled ore | $ 1,309 | $ 712 |
In-circuit | 213 | 350 |
Finished Goods | 112 | |
Supplies | 191 | 117 |
Total Inventory | $ 1,825 | $ 1,179 |
Mineral Properties and Deferred
Mineral Properties and Deferred Exploration (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2022 | Aug. 31, 2021 | ||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | $ 2,482 | ||
Ending balance | 46,637 | $ 2,482 | |
Net book value | 46,637 | 2,482 | |
Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | |||
Ending balance | 43,056 | ||
Net book value | 43,056 | ||
Processing plant [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 1,939 | ||
Ending balance | 2,873 | 1,939 | |
Net book value | 2,873 | 1,939 | |
Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 481 | ||
Ending balance | 619 | 481 | |
Net book value | 619 | 481 | |
Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 62 | ||
Ending balance | 89 | 62 | |
Net book value | 89 | 62 | |
Gross carrying amount [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 4,315 | 4,038 | |
Additions | 3,727 | [1] | 1,059 |
Disposals | (782) | ||
Transfer from E&E assets | 40,563 | ||
Ending balance | 48,605 | 4,315 | |
Net book value | 48,605 | 4,315 | |
Gross carrying amount [member] | Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | |||
Additions | 2,493 | [1] | |
Disposals | |||
Transfer from E&E assets | 40,563 | ||
Ending balance | 43,056 | ||
Net book value | 43,056 | ||
Gross carrying amount [member] | Processing plant [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 3,279 | 2,657 | |
Additions | 1,017 | [1] | 622 |
Disposals | |||
Transfer from E&E assets | |||
Ending balance | 4,296 | 3,279 | |
Net book value | 4,296 | 3,279 | |
Gross carrying amount [member] | Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 954 | 1,220 | |
Additions | 187 | [1] | 437 |
Disposals | (703) | ||
Transfer from E&E assets | |||
Ending balance | 1,141 | 954 | |
Net book value | 1,141 | 954 | |
Gross carrying amount [member] | Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 82 | 161 | |
Additions | 29 | [1] | |
Disposals | (79) | ||
Transfer from E&E assets | |||
Ending balance | 111 | 82 | |
Net book value | 111 | 82 | |
Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 1,833 | 2,300 | |
Disposals | (753) | ||
Ending balance | 1,968 | 1,833 | |
Depreciation, property, plant and equipment | 135 | 286 | |
Net book value | 1,968 | 1,833 | |
Accumulated depreciation and amortisation [member] | Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | |||
Disposals | |||
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 | |||
Ending balance | 1,423 | 1,340 | |
Depreciation, property, plant and equipment | 84 | 128 | |
Net book value | 1,423 | 1,340 | |
Accumulated depreciation and amortisation [member] | Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 473 | 1,015 | |
Disposals | (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 | (67) | ||
Ending balance | 22 | 20 | |
Depreciation, property, plant and equipment | 2 | 14 | |
Net book value | $ 22 | $ 20 | |
[1] | Included in Construction in progress is $2.3 million of long-term VAT receivable related to expenditures incurred in developing the Buckreef Gold Project. |
Exploration and evaluation as_3
Exploration and evaluation assets and expenditures (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Feb. 28, 2022 | 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 | Feb. 28, 2022 | Aug. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Total Trade, Other Payables and Accrued Liabilities | $ 5,601 | $ 5,263 |
Not later than one month [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Trade, Other Payables and Accrued Liabilities | 2,119 | 2,161 |
Later than one month and not later than three months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Trade, Other Payables and Accrued Liabilities | 2,120 | 119 |
Later than three months and not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Trade, Other Payables and Accrued Liabilities | $ 1,362 | $ 2,983 |
Income tax (Details Narrative)
Income tax (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Current income tax payable | $ 151 | $ 151 |
Derivative warrant liabilitie_2
Derivative warrant liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Feb. 28, 2022 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance at derivative warrant liabilities | $ 4,800 | |
Ending balance at derivative warrant liabilities | $ 4,800 | |
Derivative Warrant Liabilities [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance at derivative warrant liabilities | 2,149 | 551 |
Warrants issued | 2,665 | 7,830 |
Fair value adjustment | (63) | (6,232) |
Ending balance at derivative warrant liabilities | $ 4,751 | $ 2,149 |
Derivative warrant liabilitie_3
Derivative warrant liabilities (Details 1) - Derivative Warrant Liabilities [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Feb. 28, 2022 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Share price | $ 0.41 | $ 0.41 |
Dividend yield | 0.00% | 0.00% |
Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Risk-free interest rate | 1.18% | 0.19% |
Expected volatility | 52.00% | 60.00% |
Remaining term (in years) | 1 year 4 months 24 days | 1 year 10 months 24 days |
Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Risk-free interest rate | 1.70% | 0.67% |
Expected volatility | 56.00% | 70.00% |
Remaining term (in years) | 4 years 10 months 24 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 | $ 4,800 |
Share capital (Details)
Share capital (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2022 | Aug. 31, 2021 | Feb. 28, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Beginning balance, value | $ 46,425 | $ 24,869 | |
Ending balance, value | $ 49,372 | $ 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 | ||
Issued for exercising of stock option, shares | 450,000 | ||
Issued for exercising of stock option | $ 147 | ||
Issued for equity line of credit, Shares | 909,901 | ||
Issued for equity line of credit | $ 373 | ||
Issued for financing, net of share issue costs, Shares | 17,948,718 | ||
Issued for financing, net of share issue costs | $ 3,882 | ||
Balance, number (in shares) | 274,345,064 | 254,870,556 | 254,870,556 |
Ending balance, value | $ 162,629 | $ 158,129 |
Share capital (Details Narrativ
Share capital (Details Narrative) - USD ($) | Feb. 11, 2021 | Jan. 26, 2022 | Jan. 20, 2022 | Dec. 23, 2020 | Feb. 28, 2022 | Aug. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||||||
Sale of stock | 32,923,078 | 17,948,718 | 10,000,000 | 5,554,588 | 165,889 | |
Fair value of outstanding liability | $ 98,000 | |||||
Outstanding fees settled | $ 373 | $ 98,000 | ||||
Share issued | 909,901 | |||||
Purchase of warrants | 16,461,539 | 17,948,718 | 2,777,268 | |||
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 and expensed in the statement of comprehensive loss. | The common shares and warrants were issued at $0.39 for each common share and a purchase warrant with the right of each whole warrant to purchase one common share at $0.44 for a period of five years from the issue date. The Company also issued 628,205 placement agent warrants with the same terms and incurred commission and other costs of $0.7 million out of which $0.09 million was allocated to the warrants and expensed in the consolidated statement of comprehensive loss. | ||||
Aggregate of net proceeds | $ 21,400,000 | |||||
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 | $ 7,000,000 | |||||
Converted to shares | 12,150,447 | |||||
Issue of convertible instruments | $ 7,000,000 |
Share based payment reserve (De
Share based payment reserve (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Feb. 28, 2022 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance, value | $ 46,425 | $ 24,869 |
Ending balance, value | 49,372 | 46,425 |
Reserve of share-based payments [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance, value | 5,680 | 2,748 |
Share based compensation - Common shares | 1,513 | 2,933 |
Transfer of reserve on exercise of options | (1) | |
Ending balance, value | $ 7,193 | $ 5,680 |
Share based payment reserve (_2
Share based payment reserve (Details 1) | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2022shares$ / shares | Aug. 31, 2021shares$ / shares | ||
IfrsStatementLineItems [Line Items] | |||
Ending balance | shares | 6,901,000 | ||
Exercise price | $ / shares | [1] | $ 0.41 | |
Stock Options [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | shares | 7,351,000 | 7,352,000 | |
Beginning balance, weighted average exercise price | $ / shares | $ 0.41 | $ 0.41 | |
Options exercised | shares | (450,000) | (1,000) | |
Options excersied, weighted average exercise price | $ / shares | $ 0.42 | $ 0.40 | |
Ending balance | shares | 6,901,000 | 7,351,000 | |
Exercise price | $ / shares | $ 0.41 | $ 0.41 | |
[1] | Total represents weighted average. |
Share based payment reserve (_3
Share based payment reserve (Details 2) | 6 Months Ended | |
Feb. 28, 2022shares$ / shares | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.41 | [1] |
Number of options outstanding | 6,901,000 | |
Number of options exercisable | 6,901,000 | |
Remaining contractual life | 4 years 7 months 6 days | |
Range 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.40 | [1] |
Number of options outstanding | 3,519,000 | |
Number of options exercisable | 3,519,000 | |
Expiry date | Jan. 2, 2027 | |
Remaining contractual life | 4 years 9 months 18 days | |
Range 2 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.43 | [1] |
Number of options outstanding | 3,282,000 | |
Number of options exercisable | 3,282,000 | |
Expiry date | Oct. 11, 2026 | |
Remaining contractual life | 4 years 7 months 6 days | |
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 | Sep. 29, 2026 | |
Remaining contractual life | 4 years 7 months 6 days | |
[1] | Total represents weighted average. |
Share based payment reserve (_4
Share based payment reserve (Details Narrative) - shares | Feb. 28, 2022 | Aug. 31, 2021 |
Omnibus Plan [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Stock options | 14,910,506 | 12,513,055 |
Warrants reserve (Details)
Warrants reserve (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Feb. 28, 2022 | 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 | 18,576,923 | 20,391,114 |
Warrants issued, Weighted average exercise price per share | $ 0.44 | $ 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 | 41,970,074 | 23,681,052 |
Ending balance, Weighted average exercise price per share | $ 0.72 | $ 0.94 |
Warrants reserve (Details 1)
Warrants reserve (Details 1) | 6 Months Ended |
Feb. 28, 2022$ / sharesshares | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | shares | 41,970,074 |
Exercise price | $ / shares | |
Convertible Debenture Warrants [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | shares | 3,002,037 |
Exercise price | $ / shares | $ 1.2125 |
Expiry date | Jul. 27, 2023 |
Private Placement Financing Warrants December 232020 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | shares | 2,777,268 |
Exercise price | $ / shares | $ 1.50 |
Expiry date | Dec. 23, 2023 |
Private Placement Financing Warrants February 112021 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | shares | 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 | shares | 1,152,307 |
Exercise price | $ / shares | $ 0.80 |
Expiry date | Feb. 11, 2026 |
Private Placement Financing Warrants January 262022 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | shares | 17,948,718 |
Exercise price | $ / shares | $ 0.44 |
Expiry date | Jan. 26, 2027 |
Private Placement Financing Placement Agent Warrants January 262022 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | shares | 628,205 |
Exercise price | $ / shares | $ 0.44 |
Expiry date | Jan. 26, 2027 |
Warrants reserve (Details Narra
Warrants reserve (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Weighted average exercise price | $ 0.72 | $ 0.94 | $ 1.19 |
Weighted average remaining contractual life of outstanding share options | 4 years 1 month 6 days | ||
Five Year Warrants [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Issaunce of warrants | 17,948,718 | 16,461,539 | |
Warrants exercise price | $ 0.44 | $ 0.80 | |
Five Year Warrants One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Issaunce of warrants | 17,948,718 | 16,461,539 | |
Fair value of warrants | $ 2,670 | $ 7,800 | |
Dividend yield | 0.00% | 0.00% | |
Risk free interest | 1.65% | 0.46% | |
Volatility | 52.00% | 62.00% | |
Expected life | 60 months | 60 months | |
Five Year Warrants Two [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Issaunce of warrants | 628,205 | 1,152,307 | |
Fair value of warrants | $ 90 | $ 500 | |
Dividend yield | 0.00% | 0.00% | |
Risk free interest | 1.65% | 0.46% | |
Volatility | 52.00% | 62.00% | |
Expected life | 60 months | 60 months | |
Three Year Warrants [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Issaunce of warrants | 2,777,268 | ||
Warrants exercise price | $ 1.50 | ||
Three Year Warrants One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Issaunce of warrants | 2,777,268 | ||
Fair value of warrants | $ 400 | ||
Dividend yield | 0.00% | ||
Risk free interest | 0.18% | ||
Volatility | 69.00% | ||
Expected life | 36 months |
Non-controlling interest (Detai
Non-controlling interest (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Balance at beginning of period/year | $ (1,533) | |
Balance at end of period/year | (713) | |
Non-controlling interests [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at beginning of period/year | (1,533) | $ (254) |
Non-controlling interests | 820 | (1,279) |
Balance at end of period/year | $ (713) | $ (1,533) |
Non-Controlling Interest (Det_2
Non-Controlling Interest (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||||
Current assets | $ 16,006 | $ 16,006 | $ 15,418 | ||
Long term assets | 46,637 | 46,637 | 41,100 | ||
Current liabilities | 10,503 | 10,503 | 7,412 | ||
Asset retirement obligation | 2,768 | 2,768 | 2,681 | ||
Revenue | 3,334 | ||||
Comprehensive loss for the period/year | (1,002) | $ (164) | (3,160) | $ (1,799) | |
Non-controlling interests [member] | Buckreef [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Current assets | 2,961 | 2,961 | 2,920 | ||
Long term assets | 46,528 | 46,528 | 40,353 | ||
Current liabilities | (2,951) | (2,951) | (2,908) | ||
Asset retirement obligation | (2,768) | (2,768) | (2,681) | ||
Advances from parent | $ (37,490) | (37,490) | (33,728) | ||
Revenue | 3,334 | ||||
Comprehensive loss for the period/year | $ 1,735 | $ (2,841) |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | May 18, 2021 | Feb. 28, 2021 | Jan. 26, 2022 | Jan. 20, 2022 | Feb. 11, 2021 | Dec. 23, 2020 | ||
IfrsStatementLineItems [Line Items] | ||||||||||
Key Management | $ 1,100 | |||||||||
Total | $ (962) | $ (705) | $ (2,341) | $ (915) | ||||||
Fair market value of shares | 1,560 | |||||||||
Shares issued | 165,889 | 165,889 | 17,948,718 | 10,000,000 | 32,923,078 | 5,554,588 | ||||
First Date Of Common Shares [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Shares issued | 2,020,000 | 2,020,000 | ||||||||
Fair market value | $ 1,400 | |||||||||
Second Date Of Common Shares [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Shares issued | 3,550,000 | 3,550,000 | ||||||||
Fair market value | $ 2,500 | |||||||||
Third Date Of Common Shares [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Shares issued | 2,820,000 | 2,820,000 | ||||||||
Fair market value | $ 2,000 | |||||||||
Key management personnel of entity or parent [member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Key Management | [1] | $ (429) | (705) | (828) | (915) | |||||
Share based payments | $ (533) | $ (1,513) | ||||||||
[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 | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Directors’ fees | $ (114) | $ (53) | $ (187) | $ (116) |
Office and general | (203) | (210) | (514) | (384) |
Shareholder information | (184) | (128) | (297) | (199) |
Professional fees | (163) | (231) | (315) | (566) |
Salaries, benefits and consulting | (648) | (1,194) | (1,321) | (1,703) |
Severance | (241) | (241) | ||
Share based payments (Note 17) | (533) | (1,513) | ||
Travel and accommodation | (61) | (67) | (104) | (88) |
Field, camp and exploration costs | (5) | (5) | ||
General and administrative expense | $ (2,152) | $ (1,883) | $ (4,497) | $ (3,056) |
Related party transactions (D_2
Related party transactions (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2022 | Aug. 31, 2021 | |
Due to related parties | $ 300 | $ 500 |
Stock value | 7,000 | |
Recognized amount | $ 1,500 |
Financial Instrument Related _3
Financial Instrument Related Costs and Other (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Financial Instrument Related Costs And Other | ||||
(Loss) gain on derivative warrant liabilities | $ (145) | $ 3,425 | $ 63 | $ 3,662 |
Transaction costs on derivative warrant liabilities | (282) | (655) | (282) | (655) |
Change in fair value of convertible debentures | 236 | 904 | ||
Withholding tax costs | (9) | (10) | ||
Total financial instrument related costs and other | $ (427) | $ 2,525 | $ (219) | $ 2,093 |
Management of Capital (Details
Management of Capital (Details Narrative) - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
Management Of Capital | ||
Total equity attributable to owners of parent | $ 50,000 | $ 48,000 |
Financial Instruments (Details)
Financial Instruments (Details) - Derivative Warrant Liabilities [Member] | 6 Months Ended |
Feb. 28, 2022 | |
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 |
Financial Instruments (Details
Financial Instruments (Details 1) $ in Thousands | 6 Months Ended |
Feb. 28, 2022USD ($) | |
Increase in comprehensive loss volatility | $ 1,120 |
Decrease in comprehensive loss volatility | $ (1,143) |
Financial Instruments (Detail_2
Financial Instruments (Details Narrative) $ in Thousands | Feb. 28, 2022USD ($) |
Working capital deficiency | $ 5,500 |
Derivative liabilities | $ 4,800 |
Segmented Information (Details)
Segmented Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Aug. 31, 2021 | |
Reserve Quantities [Line Items] | |||
Revenue | $ 3,334 | ||
Non-current assets | 46,637 | $ 41,100 | |
Canada [Member] | |||
Reserve Quantities [Line Items] | |||
Revenue | |||
Non-current assets | 26 | 28 | |
Tanzania [Member] | |||
Reserve Quantities [Line Items] | |||
Revenue | 3,334 | ||
Non-current assets | $ 46,611 | $ 41,072 |
Non-cash items (Details)
Non-cash items (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Non-cash Items | ||||
Depreciation | $ (54) | $ (68) | $ (135) | $ (124) |
(Loss) gain on derivative warrant liabilities | (145) | 2,771 | 63 | 3,007 |
Change in fair value of convertible debentures | (236) | (904) | ||
Share based payments | (533) | (1,513) | ||
Accretion on asset retirement obligation | (54) | (35) | (88) | (69) |
Foreign exchange | 13 | |||
Forgiveness of interest | 34 | |||
Total Non-cash items | $ (786) | $ 2,445 | $ (1,673) | $ 1,944 |