Cover
Cover | 5 Months Ended |
Aug. 29, 2022 | |
Cover [Abstract] | |
Entity Registrant Name | AMARC RESOURCES LTD. |
Entity Central Index Key | 0001175596 |
Document Type | 6-K |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Document Period End Date | Aug. 29, 2022 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2022 |
Entity Ex Transition Period | false |
Entity File Number | 000-49869 |
Entity Address Address Line 1 | 14th Floor – 1040 W. Georgia Street |
Entity Address City Or Town | Vancouver |
Entity Address Postal Zip Code | V6E 4H |
Entity Incorporation State Country Code | Z4 |
Auditor Name | Thomas Wilson |
Condensed Interim Consolidated
Condensed Interim Consolidated Statements of Financial Position - CAD ($) | Jun. 30, 2022 | Mar. 31, 2022 |
Current assets | ||
Cash | $ 2,245,285 | $ 370,784 |
Amounts receivable and other assets | 132,456 | 48,817 |
Marketable securities | 409,817 | 311,293 |
Total Current Assets | 2,787,558 | 730,894 |
Non-current assets | ||
Restricted cash | 473,005 | 178,550 |
Right-of-use asset | 77,339 | 82,384 |
Total assets | 3,337,902 | 991,828 |
Current liabilities | ||
Accounts payable and accrued liabilities | 1,484,165 | 413,278 |
Balance due to related parties | 515,812 | 472,303 |
Director's loan | 250,000 | 0 |
Lease liability | 17,978 | 17,125 |
Total current liabilities | 2,267,955 | 902,706 |
Non-current liabilities | ||
Director's loan | 664,112 | 644,642 |
Lease Liability | 68,041 | 72,903 |
Total liabilities | 3,000,108 | 1,620,251 |
Shareholders' equity | ||
Share capital | 65,228,921 | 65,228,921 |
Reserves | 4,330,842 | 4,094,335 |
Accumulated deficit | (69,221,968) | (69,951,679) |
Stockholders' Equity | 337,795 | (628,423) |
Total liabilities and shareholders' equity | $ 3,337,902 | $ 991,828 |
Condensed Interim Consolidate_2
Condensed Interim Consolidated Statements of (Income) Loss - CAD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Expenses | ||
Exploration and evaluation | $ 1,809,381 | $ 793,568 |
Assays and analysis | 50,756 | 76,967 |
Drilling | 342,027 | 35,772 |
Geological, including geophysical | 198,506 | 160,825 |
Helicopter and fuel | 213,775 | 47,534 |
Property acquisition and assessments costs | 102,418 | 198 |
Site activities | 727,583 | 264,815 |
Socioeconomic | 128,534 | 184,537 |
Technical data | 11,250 | 11,322 |
Travel and accommodation | 34,532 | 11,598 |
Administration | 146,576 | 126,492 |
Legal, accounting and audit | 8,469 | 30,693 |
Office and administration | 67,608 | 76,945 |
Rent | 9,900 | 3,720 |
Shareholder communication | 33,230 | 14,673 |
Travel and accommodation | 4,442 | 0 |
Trust and regulatory | 22,927 | 461 |
Equity-settled share-based compensation | 38,792 | 0 |
Cost recoveries | (2,538,247) | (923,730) |
Loss (income) before other items | (543,498) | (3,670) |
Other items | ||
Finance income | (1,983) | (11,722) |
Interest expense - director's loans | 28,712 | 24,932 |
Accretion expense - office lease | 2,596 | 1,985 |
Other fee income | (239,835) | (52,672) |
Amortization of Right-of-use asset | 5,044 | 3,366 |
Transaction cost - director's loans | 18,661 | 17,197 |
Foreign exchange loss | 593 | (10) |
Net (income) loss | (729,711) | (20,594) |
Other comprehensive (income) loss: | ||
Change in value of marketable securities | (98,524) | 68,163 |
Total other comprehensive (income) loss | $ (828,235) | $ 47,569 |
Basic and diluted (income) loss per share | $ 0 | $ 0 |
Weighted average number of common shares outstanding | 186,602,894 | 180,602,894 |
Condensed Interim Consolidate_3
Condensed Interim Consolidated Statements of Comprehensive Income (Loss) | 3 Months Ended | |||
Jun. 30, 2022 CAD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CAD ($) | Jun. 30, 2021 USD ($) | |
Condensed Interim Consolidated Statements of Comprehensive Income (Loss) | ||||
Net income (loss) | $ 729,711 | $ 20,594 | ||
Other comprehensive income (loss): | ||||
Revaluation of marketable securities | 98,524 | (68,163) | ||
Total other comprehensive income (loss) | $ 98,524 | $ (68,163) | ||
Comprehensive income (loss) | $ 828,235 | $ (47,569) |
Consolidated Statements of Chan
Consolidated Statements of Changes in (Deficiency) Equity - CAD ($) | Total | Number of Common Shares | Share Based Payment Reserve [Member] | Investment Revaluation Reserve [Member] | Share Warrant Reserve [Member] | Retained Earnings (Accumulated Deficit) |
Balance, share at Mar. 31, 2021 | 180,602,894 | |||||
Balance, amount at Mar. 31, 2021 | $ 26,936 | $ 64,744,721 | $ 2,262,652 | $ 13,761 | $ 3,220,107 | $ (69,587,867) |
Statement [Line Items] | ||||||
Net loss for the period | 20,594 | 0 | 0 | 0 | 0 | 20,594 |
Other comprehensive loss for the period | (68,163) | 0 | 0 | (68,163) | 0 | 0 |
Total comprehensive loss | (47,569) | 0 | 0 | (68,163) | 0 | 20,594 |
Balance, amount at Jun. 30, 2021 | (20,633) | $ 64,744,721 | 2,262,652 | (54,402) | 3,220,107 | (69,567,273) |
Balance, share at Jun. 30, 2021 | 180,602,894 | |||||
Balance, share at Mar. 31, 2022 | 186,602,894 | |||||
Balance, amount at Mar. 31, 2022 | (628,423) | $ 65,228,921 | 2,386,230 | (1,327,802) | 3,035,907 | (69,951,679) |
Statement [Line Items] | ||||||
Net loss for the period | 729,711 | 0 | 0 | 0 | 0 | 729,711 |
Other comprehensive loss for the period | 98,524 | 0 | 0 | 98,524 | 0 | 0 |
Total comprehensive loss | 828,235 | 0 | 0 | 98,524 | 0 | 729,711 |
Issuance of share purchase warrants | 99,191 | 0 | 0 | 0 | 99,191 | 0 |
Equity-settled share-based compensation | 38,792 | 0 | 38,792 | 0 | 0 | 0 |
Balance, amount at Jun. 30, 2022 | $ 337,795 | $ 65,228,921 | $ 2,425,022 | $ (1,229,278) | $ 3,135,098 | $ (69,221,968) |
Balance, share at Jun. 30, 2022 | 186,602,894 |
Condensed Interim Consolidate_4
Condensed Interim Consolidated Statements of Cash Flows - CAD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities | ||
Income for the period | $ (729,711) | $ (20,594) |
Adjustments for: | ||
Amortization of right-of-use asset | 5,044 | 3,363 |
Equity-settled share-based compensation | 38,792 | 0 |
Office lease accretion per IFRS 16 | 2,596 | 1,985 |
Office base rent recorded as lease reduction per IFRS 16 | (6,605) | (2,128) |
Interest expense - director's loans | 28,712 | 24,932 |
Transaction cost - director's loans | 18,661 | 17,197 |
Changes in working capital items: | ||
Amounts receivable and other assets | (83,638) | (145,382) |
Restricted cash | (294,455) | (43) |
Accounts payable and accrued liabilities | 1,070,887 | 401,531 |
Balances due to related parties | 14,797 | 52,842 |
Net cash provided by operating activities | 1,524,501 | 374,891 |
Financing activities | ||
Proceeds from director's loans | 350,000 | 0 |
Net cash provided by financing activities | 350,000 | 0 |
Net (decrease) increase in cash | 1,874,501 | 374,891 |
Cash, beginning balance | 370,784 | 308,085 |
Cash, ending balance | $ 2,245,285 | $ 682,976 |
Nature And Continuance Of Opera
Nature And Continuance Of Operations | 3 Months Ended |
Jun. 30, 2022 | |
Nature And Continuance Of Operations | |
Nature And Continuance Of Operations | 1. NATURE AND CONTINUANCE OF OPERATIONS Amarc Resources Ltd. (“Amarc” or the “Company”) is a company incorporated under the laws of the Province of British Columbia (“BC”). Its principal business activity is the acquisition and exploration of mineral properties. The Company’s mineral property interests are located in BC. The address of the Company’s corporate office is 14th Floor, 1040 West Georgia Street, Vancouver, BC, Canada V6E 4H1. The Company is in the process of exploring its mineral property interests and has not yet determined whether its mineral property interests contain economically recoverable mineral reserves. The Company’s continuing operations are entirely dependent upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain the necessary financing to continue the exploration and development of its mineral property interests and to obtain the permits necessary to mine, and the future profitable production from its mineral property interest or proceeds from the disposition of its mineral property interests. These Condensed Consolidated Interim financial statements as at and for the three months ended June 30, 2022 (the “Financial Statements”) have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As at June 30, 2022, the Company had cash of $2,245,285, a working capital of $519,603, and an accumulated deficit of $69,221,968. The Company will need to seek additional financing to meet its exploration and development objectives. The Company has a reasonable expectation that additional funds will be available when necessary to meet ongoing exploration and development costs. However, there can be no assurance that the Company will continue to be able to obtain additional financial resources or will achieve profitability or positive cash flows. If the Company is unable to obtain adequate additional financing, the Company will be required to re-evaluate its planned expenditures until additional funding can be raised through financing activities. These factors indicate the existence of a material uncertainty that casts significant doubt about the Company’s ability to continue as a going concern. These Financial Statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern. The current outbreak of COVID-19, and any future emergence and spread of similar pathogens, could have a material adverse effect on global and local economic and business conditions, which may adversely impact Amarc’s business and results of operations and the operations of contractors and service providers. The extent to which the COVID-19 impacts our operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information that may emerge concerning its severity and the actions taken to contain the virus or treat its impact, among others. The adverse effects on the economy, the stock market and Amarc’s share price could adversely impact its ability to raise capital, with the result that our ability to pursue development of the JOY, IKE and DUKE Districts could be adversely impacted, both through delays and through increased costs. Any of these developments, and others, could have a material adverse effect on the Company’s business and results of operation and could delay its plans for development of its districts. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2022 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these Financial Statements are described below. These policies have been consistently applied for all years presented, unless otherwise stated. (a) Statement of compliance These Financial Statements have been prepared in accordance with IAS 34, Interim Financial Reporting (“IAS 34”), as issued by the International Accounting Standards Board (“IASB”) and the interpretations by the IFRS Interpretation Committee (“IFRIC”). These Financial Statements do not include all of the information and footnotes required by International Financial Reporting Standards (“IFRS”) for complete financial statements for year-end reporting purposes. These Financial Statements should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended March 31, 2022. Results for the reporting period ended June 30, 2021 are not necessarily indicative of future results. The accounting policies and methods of computation applied by the Company in these Financial Statements are the same as those applied by the Company in its more recent annual financial statements, which are filed under the Company’s provide on SEDAR at www.sedar.com. The Board of Directors of the Company authorized these Financial Statements for issuance on August 29, 2022. (b) Basis of presentation and consolidation These Financial Statements have been prepared on a historical cost basis, except for certain financial instruments classified as fair value through other comprehensive income, which are reported at fair value. In addition, these Financial Statements have been prepared using the accrual basis of accounting, except for cash flow information. These Financial Statements include the financial statements of the Company and its wholly-owned subsidiary, 1130346 B.C. Ltd. (the “Subco”), incorporated under the laws of BC. The Subco was incorporated for the purposes of entering into an option agreement related to the JOY District. On March 30, 2021, Subco was dissolved, did not have any assets, liabilities, income or expenses, and all intercompany balances and transactions had been eliminated on consolidation. Certain comparative amounts have been reclassified to conform to the presentation adopted in the current period. (c) Significant accounting estimates and judgements The critical estimates and judgements applied in the preparation of these Financial Statements are consistent with those applied in the Company’s audited consolidated financial statements as at and for the year ended March 31, 2022. (d) Operating segments The Company operates as a single reportable segment—the acquisition, exploration and development of mineral properties. All assets are held in Canada. |
Cash
Cash | 3 Months Ended |
Jun. 30, 2022 | |
Cash | |
Cash | 3. CASH The Company’s cash is invested in business and savings accounts, which are available on demand by the Company. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Jun. 30, 2022 | |
Marketable Securities | |
Marketable Securities | 4. MARKETABLE SECURITIES As at June 30, 2022, the fair value of its current holdings was $409,817 (March 31, 2022 - $311,293) and the positive change of fair value adjustment of $98,524 for the period ended June 30, 2022 (June 30, 2021 – negative change of fair value adjustment of $68,163). The marketable securities include 5.5 million units (shares and warrants) of Carlyle Commodities Corp., a Canadian public company listed on TSX-V exchange. As at June 30, 2022, the Company held the following marketable securities: Company Shares/Warrants Held Cost Fair Value Fair Value Increase(Decrease) (#) ($) ($) ($) Carlyle Commodities Corp - Shares 5,500,000 907,500 220,000 (687,500 ) Carlyle Commodities Corp - Warrants 5,500,000 727,000 172,000 (555,000 ) Other 2,275,002 18,356 17,817 (539 ) Total 13,275,002 1,652,856 409,817 (1,243,039 ) |
Restricted Cash
Restricted Cash | 3 Months Ended |
Jun. 30, 2022 | |
Restricted Cash | |
Restricted Cash | 5. RESTRICTED CASH Restricted cash represents amounts held in support of exploration permits. The amounts are refundable subject to the consent of regulatory authorities upon completion of any required reclamation work on the related projects. |
Amounts Receivable and Other As
Amounts Receivable and Other Assets | 3 Months Ended |
Jun. 30, 2022 | |
Amounts Receivable and Other Assets | |
Amounts Receivable and Other Assets | 6. AMOUNTS RECEIVABLE AND OTHER ASSETS June 30, 2022 March 31, 2022 ($) ($) Sales tax refundable 81,333 25,354 Contribution receivable (note 7(b)) - 1 Prepaid 51,123 23,462 132,456 48,817 |
Exploration and Evaluation Expe
Exploration and Evaluation Expenses and Cost Recoveries | 3 Months Ended |
Jun. 30, 2022 | |
Exploration and Evaluation Expenses and Cost Recoveries | |
Exploration and Evaluation Expenses and Cost Recoveries | 7. EXPLORATION AND EVALUATION EXPENSES AND COST RECOVERIES Below is a summary of the Company’s major exploration property interests, together with the material property transactions. (a) IKE District The IKE Property mineral claims (a subset of the IKE District mineral tenure) carry a Net Smelter Return (“NSR”) royalty obligation of 1%, subject to a $2 million cap and with the Company able to purchase the royalty at any time by payment of the same amount. These claims carry an additional NSR royalty of 2%, subject to the Company retaining the right to purchase up to the entire royalty amount by the payment of up to $4 million. The Company has also agreed to make annual advance royalty payments of $50,000 to the holders of the 2% NSR royalty interest and, upon completion of a positive feasibility study, to issue to these same parties 500,000 common shares. The Granite Property mineral claims (a subset of the IKE District mineral tenure) are subject to a 2% NSR royalty which can be purchased for $2 million. In addition, there is an underlying 2.5% NSR royalty on certain mineral claims within the Granite Property, which can be purchased at any time for $1.5 million less any amount of royalty already paid. The entire IKE District is subject to a 1% NSR royalty from mine production capped at a total of $5 million. (b) JOY District In November 2016, the Company entered into a purchase agreement with a private company wholly-owned by one of its directors to purchase 100% of the JOY Property mineral claims (a subset of the JOY District mineral tenure) for the reimbursement of the vendor’s direct acquisition costs of $335,299. This Property is subject to an underlying NSR royalty held by a former owner which is capped at $3.5 million. In addition, the Company concluded agreements with each of Gold Fields Toodoggone Exploration Corporation (“GFTEC”) and Cascadero Copper Corporation (“Cascadero”) in mid-2017 pursuant to which the Company can purchase 100% of the PINE Property mineral claims (a subset of the JOY District Mineral tenure). In October 2018, Amarc acquired a 100% interest in Cascadero’s 49% interest in the PINE Property by completing total cash payments of $1,000,000 and issuing 5,277,778 common shares. In December 2019, the Company amended the GFTEC Agreement to purchase GFTEC’s 51% interest in the PINE Property. Under the terms of the amendment Amarc will purchase outright GFTEC’s 51% interest in the 323 km 2 The PINE Property is subject to a 3% underlying NSR royalty payable to a former owner. The Company has reached an agreement with the former owner to cap the 3% NSR royalty at $5 million payable from production for consideration totaling $100,000 and 300,000 common shares payable in stages through to January 31, 2019 (completed). GFTEC retains a 2.5% net profits interest (“NPI”) royalty on mineral claims comprising approximately 96% of the PINE Property, which are subject to a NSR royalty payable to a former owner (“Underlying NSR”) and a 1% NSR royalty on the balance of the claims that are not subject to the Underlying NSR royalty. The NPI royalty can be reduced to 1.25% at any time through the payment to GFTEC of $2.5 million in cash or shares. The NSR royalty can be reduced to 0.5% through the payment to GFTEC of $2.5 million in cash or shares. In November 2019 Amarc entered into a purchase agreement with two prospectors to acquire 100% of a single mineral claim, called the Paula Property, located internal to the wider JOY District mineral tenure. The claim is subject to a 1% NSR royalty payable from commercial production that is capped at $0.5 million. JOY District Agreement with Freeport On May 11, 2021, the Company and Freeport-McMoRan Mineral Properties Canada Inc. (“Freeport”), a wholly-owned subsidiary of Freeport-McMoRan Inc. (NYSE:FCX) entered into a Mineral Property Earn-in Agreement (the “Agreement”) whereby Freeport may acquire up to a 70% ownership interest of the Company’s JOY porphyry Cu-Au District Property. Under the terms of the Agreement, Freeport has a two-stage option to earn up to a 70% ownership interest in the mineral claims comprising the JOY District, plus other rights and interests, over a 10 year period. To earn an initial 60% interest, Freeport is required to fund $35 million of work expenditures over a 5- year term. During the first year of the earn-in, a $4 million work program was planned in the JOY District. These optional earn-in expenditures can be accelerated by Freeport at its discretion. Amarc will be operator during the initial earn-in period. Once Freeport has acquired such 60% interest, Amarc and Freeport will proceed to operate the JOY District through a jointly owned corporation with Freeport assuming project operatorship. Upon Freeport earning such 60% interest, it can elect, in its sole discretion, to earn an additional 10% interest, for a total 70% interest by sole funding a further $75 million within the following five years. Once Freeport has finalized its earned ownership interest at either the 60% or 70% level, each party will be responsible for funding its own pro-rata share of project costs on a 60:40 or 70:30 basis. During the three month period ended June 30, 2022, the Company incurred eligible and recoverable project costs of $2,538,247 included as expenses in the Consolidated Statements of Loss and Comprehensive Loss. During the three months ended June 30, 2022, the Company also earned a fee of $239,835 as the project operator. (c) DUKE District The DUKE District is located in central BC. In November 2016, the Company entered into a purchase agreement with a private company wholly-owned by one of its directors (note 11(c)) to purchase a 100% interest in the DUKE Property mineral claims (a subset of the DUKE District mineral tenure) for the reimbursement of the vendor’s direct acquisition costs of $168,996. (d) Other property transactions During the comparative year, Amarc operated programs on two exploration properties owned by a related party, Jake and Mack (the “Operated Properties”), for the claim optionee on a cost recovery basis (note 11(c)). During the comparative year, Amarc received a non-refundable payment of US$200,000 (CDN$260,115) pursuant to an option agreement whereby an arms-length third party optionee had the right to earn an initial 51% interest in the Windfall Project, comprised of 25 mineral claims located within the IKE District (note 7(a)), by spending US$4.2 million on exploration by October 21, 2022. On May 25, 2021, this option agreement was terminated by mutual consent of both Amarc and the optionee. On December 16, 2020 (the “Closing Date”), the Company closed the sale of its Newton property (“Newton”) located in south-central British Columbia (“BC”) to Isaac Mining Corp.(“IMC”), an arms- length private company and a wholly-owned subsidiary of Carlyle Commodities Corp. (“Carlyle”) (CSE:CCC, FSE:1OZ, OTC:DLRYF). Amarc has received consideration comprising total cash of $300,000 from IMC and 5.5 million equity units (common share plus warrant) in Carlyle. The 5.5 million warrants are exercisable at $0.50 per warrant with an expiry date of December 8, 2025. The fair value of the 5.5 million shares of Carlyle on the Closing Date was recorded at $907,500, based on a per share value of $0.165, the closing quote of Carlyle’s common shares on December 16, 2020. The fair value of the 5.5 million warrants of Carlyle on the Closing Date is recorded was $727,000 using the Black-Scholes option pricing model. The fair value was calculated based on the following weighted average assumptions: Risk free-interest rate – 0.38%; Dividend yield – 0.00%; Expected volatility – 139.0%; Expected life – 4.98 years. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 3 Months Ended |
Jun. 30, 2022 | |
Accounts Payable and Accrued Liabilities | |
Accounts Payable and Accrued Liabilities | 8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES June 30, 2022 March 31, 2022 ($) ($) Accounts payable 1,228,501 175,850 Accrued liabilities 255,664 237,428 Total 1,484,165 413,278 |
Directors Loans
Directors Loans | 3 Months Ended |
Jun. 30, 2022 | |
Directors Loans | |
Director's Loans | 9. DIRECTOR’S LOAN Three months ended Year ended June 30, 2022 March 31, 2022 ($) ($) Opening balance 644,642 570,000 Principal advances 350,000 - Transaction costs (99,191 ) - Amortization of transaction costs 18,661 74,642 Closing balance 914,112 644,642 Three months ended Year ended June 30, 2022 March 31, 2022 ($) ($) Non-current portion 664,112 644,642 Total 664,112 644,642 Finance expenses For three months ended June 30, 2022 2021 ($) ($) Interest on loan 28,712 24,932 Amortization of transaction costs 18,661 17,197 Total 47,373 42,129 In December 2019, the Company entered into a loan extension and amendment agreement (the “Loan”) with a director and significant shareholder of the Company (the “Lender”), pursuant to which a previous loan agreement with a maturity date of November 26, 2019 was extended for five years or earlier pending the achievement of certain financing milestones. The Loan has a principal sum of $1,000,000, is unsecured and bears interest at a rate of 10% per annum. On December 13, 2021, a total of $160,000 in interest was paid. Pursuant to the Loan, the Company issued to the Lender a loan bonus comprising of 16,000,000 common share purchase warrants (the “Warrants”) with an expiry of five years and an exercise price of $0.05 per share. The Company entered into a Second Loan Amendment Agreement dated May 25, 2022, pursuant to which it has agreed to a $100,000 increase to an existing $ 1 million loan (the “Loan”) with the related party lender disclosed at note 9 (the “Lender”). The Loan is unsecured, will bear interest at a rate of 10% per annum and is repayable on or before the earlier of November 26, 2024, the occurrence of a default or on achievement of financing milestones. In connection with this Loan, Amarc will issue to the Lender a loan bonus in the form of 1,176,470 warrants (the "Bonus Warrants"), each entitling the holder to acquire one common share of Amarc until November 26, 2024 at a price of $0.085 per share. The Bonus Warrants will be subject to a four month hold period commencing from the date of issuance thereof. The Loan and Bonus Warrants are subject to acceptance by the TSX Venture Exchange. The Loan proceeds are being used to pay the initial option requirement of $100,000 for a five BC mineral claims group option dated May 16, 2022, from an arm’s length optionor. Total additional option payments are a further $900,000 at $100,000 per year, payable on or before May 31 of each year (total option payments are $1,000,000). The property is subject to a 2% NSR royalty, of which 1.5% is capped at $10 million. On June 15, a separate 6-month facility 12% interest was included in the Loan Amendment, which can be accessed by the Company upon the determination of the Company’s entitlement to near-term receipt of BCMETC. |
Share Capital and Reserves
Share Capital and Reserves | 3 Months Ended |
Jun. 30, 2022 | |
Share Capital and Reserves | |
Share Capital and Reserves | 10. SHARE CAPITAL AND RESERVES (a) Authorized and outstanding share capital The Company’s authorized share capital consists of an unlimited number of common shares without par value (“Common Shares”) and an unlimited number of preferred shares. All issued Common Shares are fully paid. No preferred shares have been issued. On August 20, 2020, 3,000,000 flow-through shares were issued pursuant to the exercise of warrants for gross proceeds of $150,000. On October 2, 2020, 2,000,000 flow-through shares were issued pursuant to the exercise of warrants for gross proceeds of $100,000. $100 related to flow-through tax filing has been deducted from the gross proceeds as issuance costs. Approximately $167,000 of the flow-through proceeds received were renounced to the shareholder as at December 31, 2020. The Company recognized no flow-through premium in excess of the fair value of these common shares at their dates of issuance. On December 2, 2021, 6,000,000 flow-through shares were issued pursuant to the exercise of warrants for gross proceeds of $300,000. The Company recognized no flow-through premium in excess of the fair value of these common shares at their dates of issuance. As at June 30, 2022, the amount of flow-through proceeds remaining to be expended is approximately $383,000 (March 31, 2022 - $383,000), which in total must be incurred on or before December 31, 2023. The BCMETC cannot be claimed by the Company on mineral exploration expenses related to meeting expenditure commitments pursuant to the issue of flow-through shares; however, the BCMETC itself, once received, may be used for any purpose. As at June 30, 2022, there were 186,602,894 (March 31, 2022 – 186,602,894) Common Shares issued and outstanding. (b) Share purchase options On March 9, 2022, the Company granted 3.48 million incentive stock options to its service providers to acquire an aggregate of 3.48 million common shares at $0.12 per share, for a period of three to five years of which 50% are being granted to insiders. All of the options are subject to required TSXV acceptance and customary vesting provisions over 24 months. The fair value of these warrants at issue was determined to be $366,912 using the Black-Scholes pricing model and based on the following assumptions: risk-free rate of 1.65%; expected volatility of 139%; underlying market price of $0.12; strike price of $0.12; expiry term of 3 - 5 years; and, dividend yield of nil. The following summarizes changes in the Company’s share purchase options (the “Options”): June 30, June 30, 2022 2021 Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Number of Options Outstanding – beginning balance 0.05 2,000,000 0.05 2,000,000 Grant 0.12 3,480,000 - - Outstanding – ending balance 0.09 5,480,000 0.05 2,000,000 The following summarizes information on the options outstanding and exercisable as at June 30, 2022: Options Outstanding Options Exercisable Exercise price Expiry date Weighted Average Remaining Contractual Life (years) Number of Options Weighted Average Remaining Contractual Life (years) Number of Options 0.05 4-Oct-24 2.27 2,000,000 0.00 2,000,000 0.12 9-Mar-25 2.69 2,580,000 2.69 2,580,000 0.12 9-Mar-27 4.69 900,000 0.00 900,000 Total 2.87 5,480,000 2.87 5,480,000 (c) Share purchase warrants The following common share purchase warrants were outstanding at June 30, 2022 and March 31, 2022: June 30, March 31, Exercise price 2022 2022 Issued pursuant to the Loan (note 9) 0.05 16,000,000 16,000,000 Issued pursuant to the Loan (note 9) 0.085 1,176,470 - Exercised (11,000,000 ) (11,000,000 ) Total 6,176,470 5,000,000 (i) 2019 loan bonus warrants In December 2019, 16,000,000 share purchase warrants were issued pursuant to the Loan (note 9). The fair value of these warrants at issue was determined to be $490,449 at $0.03 per warrant using the Black-Scholes pricing model and based on the following assumptions: risk-free rate of 1.57%; expected volatility of 144%; underlying market price of $0.035; strike price of $0.05; expiry term of 5 years; and, dividend yield of nil. (ii) 2022 loan bonus warrants In June 2022, 1,176,470 share purchase warrants were issued pursuant to the Loan (note 9). The fair value of these warrants at issue was determined to be $99,191 at $0.08 per warrant using the Black-Scholes pricing model and based on the following assumptions: risk-free rate of 3.28%; expected volatility of 138%; underlying market price of $0.11; strike price of $0.085; expiry term of 2.45 years; and, dividend yield of nil. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions | |
Related Party Transactions | 11. RELATED PARTY TRANSACTIONS June 30, 2022 March 31, 2022 Balances due to related parties ($) ($) Hunter Dickinson Services Inc. 369,247 345,289 Robert Dickinson (interest payable) 139,972 111,260 United Mineral Services Ltd. 3,443 11,029 Thomas Wilson (CFO fees) 3,150 4,725 Total 515,812 472,303 (a) Transactions with key management personnel Key management personnel (“KMP”) are those persons that have the authority and responsibility for planning, directing, and controlling the activities of the Company, directly and indirectly, and by definition include all the directors of the Company. Note 9 includes the details of a director’s loan. Note 7(b) and 7(c) includes the details of the acquisition of mineral property interests from a private entity wholly-owned by one of the directors of the Company. During the three months ended June 31, 2022 and 2021, the Company’s President, Chief Executive Officer and Director and Corporate Secretary provided services to the Company under a service agreement with Hunter Dickinson Services Inc. (note 11(b)). During the three months ended June 30, 2022, the Company incurred fees totaling $9,000 (2021 -$4,000) in respect of services provided by Chief Financial Officer. During the three months ended June 30, 2022, the Company recorded share-based compensation expense of $12,778 (June 30, 2021 - $nil) in relation to 850,000 (June 30, 2021 - nil) stock options issued to directors and officers of the Company. (b) Hunter Dickinson Services Inc. Hunter Dickinson Inc. (“HDI”) and its wholly-owned subsidiary Hunter Dickinson Services Inc. (“HDSI”) are private companies established by a group of mining professionals. HDSI provides contract services for a number of mineral exploration and development companies, and also to companies that are outside of the mining and mineral development space. Amarc acquires services from a number of related and arms-length contractors, and it is at Amarc’s discretion that HDSI provides certain contract services. The Company has one director in common with HDSI, namely Robert Dickinson. Also, the Company’s President, Chief Executive Officer and Director, and Corporate Secretary are employees of HDSI and are contracted to work for the Company under an employee secondment agreement between the Company and HDSI. Pursuant to an agreement dated July 2, 2010, HDSI provides certain cost effective technical, geological, corporate communications, regulatory compliance, and administrative and management services to the Company, on a non-exclusive basis as needed and as requested by the Company. As a result of this relationship, the Company has ready access to a range of diverse and specialized expertise on a regular basis, without having to engage or hire full-time employees or experts. The Company benefits from the economies of scale created by HDSI which itself serves several clients both within and external to the exploration and mining sector. The Company is not obligated to acquire any minimum amount of services from HDSI. The monetary amount of the services received from HDSI in a given period of time is a function of annually set and agreed charge-out rates for and the time spent by each HDSI employee engaged by the Company. HDSI also incurs third-party costs on behalf of the Company. Such third-party costs include, for example, capital market advisory services, communication services and office supplies. Third-party costs are billed at cost, without markup. There are no ongoing contractual or other commitments resulting from the Company’s transactions with HDSI, other than the payment for services already rendered and billed. The agreement may be terminated upon 60 days’ notice by either the Company or HDSI. The following is a summary of transactions with HDSI that occurred during the reporting period: Three months ended June 30, 2022 2021 (rounded to the nearest thousand CAD) ($) ($) Services received from HDSI and as requested by the Company 186,000 192,000 Information technology – infrastructure and support services 15,000 22,000 Office rent 10,000 2,000 Reimbursement, at cost, of third-party expenses incurred by HDSI on behalf of the Company 36,000 24,000 Total 247,000 240,000 (c) United Mineral Services Ltd. United Mineral Services Ltd. (“UMS”) is a private company wholly-owned by one of the directors of the Company. UMS is engaged in the acquisition and exploration of mineral property interests. There were no transactions with UMS that occurred during the three months ended June 30, 2022 and 2021. |
Supplementary Information To th
Supplementary Information To the Consolidated Statements of Loss | 3 Months Ended |
Jun. 30, 2022 | |
Supplementary Information To the Consolidated Statements of Loss | |
Supplementary Information To TheConsolidated Statements Of Loss | 12. SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF LOSS (a) Employees’ salaries and benefits The employees’ salaries and benefits included in exploration and evaluation expenses and administration expenses are as follows: Three months ended June 30, 2022 2021 Employee salaries and benefits ($) ($) Exploration an evaluation expenses 508,000 247,000 Administration expenses 53,000 63,000 561,000 310,000 (1) rounded to the nearest thousand dollar (2) includes salaries and benefits included in office and administration expenses (note 12(b)) and other salaries and benefits expenses classified as administration expenses (b) Office and administration expenses Office and administration expenses include the following: Three months ended June 30, 2022 2021 ($) ($) Salaries and Benefits 53,000 56,000 Data processing and retention 4,000 6,000 Insurance 7,000 12,000 Other office expenses 4,000 3,000 68,000 77,000 (1) rounded to the nearest thousand dollar |
Office Lease - Right Of Use Ass
Office Lease - Right Of Use Asset And Lease Liability | 3 Months Ended |
Jun. 30, 2022 | |
Office Lease - Right Of Use Asset And Lease Liability | 13. OFFICE LEASE – RIGHT OF USE ASSET AND LEASE LIABILITY The Company subleases corporate offices in Vancouver, BC from HDSI under a lease agreement dated May 1, 2021, and the lease expires on April 29, 2026. Right-of-use asset A summary of the changes in the right-of-use asset for the three months ended June 30, 2022 and the year ended March 31, 2022 are as follows: Right-of-use-asset ($) Balance at March 31, 2021 - Addition 100,877 Amortization -18,494 Balance at March 31, 2022 82,383 Amortization -5,044 Balance at June 30, 2022 77,339 Lease liability On May 1, 2021, the Company entered into lease agreement, which resulted in the lease liability of $100,877 (undiscounted value of $134,766, discount rate used is 12.00%). This liability represents the monthly lease payment from May 1, 2021 to April 29, 2026, the end of the lease term less abatement granted by HDSI. A summary of changes in the lease liability during the three months ended June 30, 2022 and the year ended March 31, 2022 are as follows: Lease liability ($) Balance at March 31, 2021 - Addition 100,877 Lease payment – base rent portion -21,288 Lease liability – accretion expense 10,438 Balance as at Mach 31, 2022 90,027 Current portion 27,819 Long-term portion 62,208 Balance at March 31, 2022 90,027 Lease payment – base rent portion -6,605 Lease liability – accretion expense 2,596 Balance as at June 30, 2022 86,019 Current portion 17,978 Long-term portion 68,041 The following is a schedule of the Company’s future lease payments (base rent portion) under the lease obligations: Future lease payments (base rent portion only) ($) Fiscal 2023 (July 1, 2022 to March 31, 2023) 20,141 Fiscal 2024 (April 1, 2023 to March 31, 2024) 28,056 Fiscal 2025 (April 1, 2024 to March 31, 2025) 28,165 Fiscal 2026 (April 1, 2025 to March 31, 2026) 28,165 Fiscal 2027 (April 1, 2026 to April 29, 2027) (Note 6) 2,347 Total undiscounted lease payments 106,874 Less: imputed interest -20,855 Lease liability as at June 30, 2022 86,019 |
Financial Risk Management
Financial Risk Management | 3 Months Ended |
Jun. 30, 2022 | |
Financial Risk Management | |
Financial Risk Management | 14. FINANCIAL RISK MANAGEMENT (a) Capital management objectives The Company’s primary objectives when managing capital are to safeguard the Company’s ability to continue as a going concern so that it can continue to provide returns for shareholders, and to have sufficient liquidity available to fund ongoing expenditures and suitable business opportunities as they arise. The Company considers the components of shareholders’ equity as well as its cash as capital. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may issue equity, sell assets, or return capital to shareholders as well as issue or repay debt. The Company’s investment policy is to invest its cash in highly liquid, short-term, interest-bearing investments having maturity dates of three months or less from the date of acquisition, which are readily convertible into known amounts of cash. The Company is not subject to any imposed equity requirements. There were no changes to the Company’s approach to capital management during the three months ended June 30, 2022. (b) Carrying amounts and fair values of financial instruments The Company’s marketable securities are carried at fair value based on quoted prices in active markets. As at June 30, 2022 and March 31, 2022, the carrying values of the Company’s financial assets and financial liabilities approximate their fair values. (c) Financial instrument risk exposure and risk management The Company is exposed in varying degrees to a variety of financial instrument-related risks. The Board of Directors approves and monitors the risk management processes, inclusive of documented treasury policies, counterparty limits, and controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows: Credit risk Credit risk is the risk of potential loss to the Company if a counterparty to a financial instrument fair to meet its contractual obligations. The Company’s credit risk is primarily attributable to its liquid financial assets, including cash, and amounts receivable and other assets. The carrying values of these financial assets represent the Company’s maximum exposure to credit risk. The Company limits the exposure to credit risk by only investing its cash in high-credit quality financial institutions in business and savings accounts, which are available on demand by the Company for its programs. Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. The Company ensures that there is sufficient cash in order to meet its short-term business requirements after taking into account the Company’s holdings of cash. The Company has sufficient cash to meet its commitments associated with its financial liabilities in the near term, other than the amounts payable to related parties. Interest rate risk The Company is subject to interest rate risk with respect to its investments in cash. The Company’s policy is to invest cash at variable rates of interest and cash reserves are to be maintained in cash in order to maintain liquidity, while achieving a satisfactory return for shareholders. Fluctuations in interest rates when cash matures impact interest income earned. As at June 30, 2022 and March 31, 2022, the Company’s exposure to interest rate risk was nominal. Price risk Equity price risk is defined as the potential adverse impact on the Company’s earnings due to movements in individual equity prices or general movements in the level of the stock market. The Company is subject to price risk in respect of its investments in marketable securities. As at June 30, 2022 and March 31, 2022, the Company’s exposure to price risk was not significant in relation to these Financial Statements. |
Events After the Reporting Peri
Events After the Reporting Period | 3 Months Ended |
Jun. 30, 2022 | |
Events After the Reporting Period | |
Events After the Reporting Period | 15. EVENTS AFTER THE REPORTING PERIOD On July 8, 2022, the Company announced that it had engaged Kin Communications Inc. (“Kin”) to assist with its investor relations activities. Under the terms of the Investor Relations Agreement, Kin agreed to assist Amarc with investor relations, including communicating with and marketing to potential investors, shareholders and media contacts for a period of twelve months and on a month-to-month basis thereafter. In consideration for the services, the Company has agreed to pay Kin $12,500 per month for the initial 12-month period. In addition, the Company has granted Kin stock options entitling it to purchase 1,000,000 of the Company’s common shares at a price of $0.11 per share with a five-year term, vesting in three instalments of 33%, 33% and 34%, with the first instalment vesting 90 days after the Effective Date of the Investor Relations Agreement. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2022 | |
Significant Accounting Policies | |
Statement of Compliance | These Financial Statements have been prepared in accordance with IAS 34, Interim Financial Reporting (“IAS 34”), as issued by the International Accounting Standards Board (“IASB”) and the interpretations by the IFRS Interpretation Committee (“IFRIC”). These Financial Statements do not include all of the information and footnotes required by International Financial Reporting Standards (“IFRS”) for complete financial statements for year-end reporting purposes. These Financial Statements should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended March 31, 2022. Results for the reporting period ended June 30, 2021 are not necessarily indicative of future results. The accounting policies and methods of computation applied by the Company in these Financial Statements are the same as those applied by the Company in its more recent annual financial statements, which are filed under the Company’s provide on SEDAR at www.sedar.com. The Board of Directors of the Company authorized these Financial Statements for issuance on August 29, 2022. |
Basis of Presentation and Consolidation | These Financial Statements have been prepared on a historical cost basis, except for certain financial instruments classified as fair value through other comprehensive income, which are reported at fair value. In addition, these Financial Statements have been prepared using the accrual basis of accounting, except for cash flow information. These Financial Statements include the financial statements of the Company and its wholly-owned subsidiary, 1130346 B.C. Ltd. (the “Subco”), incorporated under the laws of BC. The Subco was incorporated for the purposes of entering into an option agreement related to the JOY District. On March 30, 2021, Subco was dissolved, did not have any assets, liabilities, income or expenses, and all intercompany balances and transactions had been eliminated on consolidation. Certain comparative amounts have been reclassified to conform to the presentation adopted in the current period. |
Significant Accounting Estimates and Judgments | The critical estimates and judgements applied in the preparation of these Financial Statements are consistent with those applied in the Company’s audited consolidated financial statements as at and for the year ended March 31, 2022. |
Operating Segments | The Company operates as a single reportable segment—the acquisition, exploration and development of mineral properties. All assets are held in Canada. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Marketable Securities | |
Marketable securities | Company Shares/Warrants Held Cost Fair Value Fair Value Increase(Decrease) (#) ($) ($) ($) Carlyle Commodities Corp - Shares 5,500,000 907,500 220,000 (687,500 ) Carlyle Commodities Corp - Warrants 5,500,000 727,000 172,000 (555,000 ) Other 2,275,002 18,356 17,817 (539 ) Total 13,275,002 1,652,856 409,817 (1,243,039 ) |
Amounts Receivable and Other _2
Amounts Receivable and Other Assets (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Amounts Receivable and Other Assets | |
Schedule of amounts receivable and other assets | June 30, 2022 March 31, 2022 ($) ($) Sales tax refundable 81,333 25,354 Contribution receivable (note 7(b)) - 1 Prepaid 51,123 23,462 132,456 48,817 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Accounts Payable and Accrued Liabilities | |
Schedule of accounts payable and accrued liabilities | June 30, 2022 March 31, 2022 ($) ($) Accounts payable 1,228,501 175,850 Accrued liabilities 255,664 237,428 Total 1,484,165 413,278 |
Directors Loans (Tables)
Directors Loans (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Directors Loans | |
Schedule of unsecured loans payable | Three months ended Year ended June 30, 2022 March 31, 2022 ($) ($) Opening balance 644,642 570,000 Principal advances 350,000 - Transaction costs (99,191 ) - Amortization of transaction costs 18,661 74,642 Closing balance 914,112 644,642 |
Schedule of Non-Current Portion | Three months ended Year ended June 30, 2022 March 31, 2022 ($) ($) Non-current portion 664,112 644,642 Total 664,112 644,642 |
Schedule of Finance Expenses | Finance expenses For three months ended June 30, 2022 2021 ($) ($) Interest on loan 28,712 24,932 Amortization of transaction costs 18,661 17,197 Total 47,373 42,129 |
Share Capital and Reserves (Tab
Share Capital and Reserves (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Share Capital and Reserves | |
Schedule of purchase options | June 30, June 30, 2022 2021 Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Number of Options Outstanding – beginning balance 0.05 2,000,000 0.05 2,000,000 Grant 0.12 3,480,000 - - Outstanding – ending balance 0.09 5,480,000 0.05 2,000,000 |
Schedule of options outstanding | Options Outstanding Options Exercisable Exercise price Expiry date Weighted Average Remaining Contractual Life (years) Number of Options Weighted Average Remaining Contractual Life (years) Number of Options 0.05 4-Oct-24 2.27 2,000,000 0.00 2,000,000 0.12 9-Mar-25 2.69 2,580,000 2.69 2,580,000 0.12 9-Mar-27 4.69 900,000 0.00 900,000 Total 2.87 5,480,000 2.87 5,480,000 |
Schedule of share purchase warrants | June 30, March 31, Exercise price 2022 2022 Issued pursuant to the Loan (note 9) 0.05 16,000,000 16,000,000 Issued pursuant to the Loan (note 9) 0.085 1,176,470 - Exercised (11,000,000 ) (11,000,000 ) Total 6,176,470 5,000,000 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Disclosure of transactions between related parties [line items] | |
Schedule of balances due to related parties | June 30, 2022 March 31, 2022 Balances due to related parties ($) ($) Hunter Dickinson Services Inc. 369,247 345,289 Robert Dickinson (interest payable) 139,972 111,260 United Mineral Services Ltd. 3,443 11,029 Thomas Wilson (CFO fees) 3,150 4,725 Total 515,812 472,303 |
Hunter Dickinson Services Inc. | |
Disclosure of transactions between related parties [line items] | |
Schedule of related party transactions | Three months ended June 30, 2022 2021 (rounded to the nearest thousand CAD) ($) ($) Services received from HDSI and as requested by the Company 186,000 192,000 Information technology – infrastructure and support services 15,000 22,000 Office rent 10,000 2,000 Reimbursement, at cost, of third-party expenses incurred by HDSI on behalf of the Company 36,000 24,000 Total 247,000 240,000 |
Supplementary Information To _2
Supplementary Information To The Consolidated Statements Of Loss (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Schedule Of Employees Salaries and Benefits | Three months ended June 30, 2022 2021 Employee salaries and benefits ($) ($) Exploration an evaluation expenses 508,000 247,000 Administration expenses 53,000 63,000 561,000 310,000 |
Schedule of Office And Administration Expenses | Three months ended June 30, 2022 2021 ($) ($) Salaries and Benefits 53,000 56,000 Data processing and retention 4,000 6,000 Insurance 7,000 12,000 Other office expenses 4,000 3,000 68,000 77,000 |
Office Lease-Right Of Use Asset
Office Lease-Right Of Use Asset And lease liability (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Schedule Of Right -Of-Use Asset | Right-of-use-asset ($) Balance at March 31, 2021 - Addition 100,877 Amortization -18,494 Balance at March 31, 2022 82,383 Amortization -5,044 Balance at June 30, 2022 77,339 |
Summary of Changes In The Lease Liability | Lease liability ($) Balance at March 31, 2021 - Addition 100,877 Lease payment – base rent portion -21,288 Lease liability – accretion expense 10,438 Balance as at Mach 31, 2022 90,027 Current portion 27,819 Long-term portion 62,208 Balance at March 31, 2022 90,027 Lease payment – base rent portion -6,605 Lease liability – accretion expense 2,596 Balance as at June 30, 2022 86,019 Current portion 17,978 Long-term portion 68,041 |
Summary Of Company Future Lease Payments | Future lease payments (base rent portion only) ($) Fiscal 2023 (July 1, 2022 to March 31, 2023) 20,141 Fiscal 2024 (April 1, 2023 to March 31, 2024) 28,056 Fiscal 2025 (April 1, 2024 to March 31, 2025) 28,165 Fiscal 2026 (April 1, 2025 to March 31, 2026) 28,165 Fiscal 2027 (April 1, 2026 to April 29, 2027) (Note 6) 2,347 Total undiscounted lease payments 106,874 Less: imputed interest -20,855 Lease liability as at June 30, 2022 86,019 |
NATURE AND CONTINUANCE OF OPE_2
NATURE AND CONTINUANCE OF OPERATIONS (Details Narrative) - CAD ($) | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 |
NATURE AND CONTINUANCE OF OPERATIONS (Details Narrative) | ||||
Cash | $ 2,245,285 | $ 370,784 | $ 682,976 | $ 308,085 |
Working capital | (519,603) | |||
Accumulated deficit | $ (69,221,968) | $ (69,951,679) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended |
Jun. 30, 2022 | |
Significant Accounting Policies | |
Reportable segment, description | The Company operates as a single reportable segment |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - CAD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement [Line Items] | ||
Shares/Warrants held | 13,275,002 | |
Cost | $ 1,652,856 | |
Fair value | 409,817 | |
Fair value increase/decrease | (1,243,039) | |
Fair value increase/decrease | $ 98,524 | $ (68,163) |
Carlyle Commodities Corp. Shares | ||
Statement [Line Items] | ||
Shares/Warrants held | 5,500,000 | |
Cost | $ 907,500 | |
Fair value | 220,000 | |
Fair value increase/decrease | $ (687,500) | |
Carlyle Commodities Corp. Warrants | ||
Statement [Line Items] | ||
Shares/Warrants held | 5,500,000 | |
Cost | $ 727,000 | |
Fair value | 172,000 | |
Fair value increase/decrease | $ (555,000) | |
Other | ||
Statement [Line Items] | ||
Shares/Warrants held | 2,275,002 | |
Cost | $ 18,356 | |
Fair value | 17,817 | |
Fair value increase/decrease | $ (539) |
MARKETABLE SECURITIES (Details
MARKETABLE SECURITIES (Details Narrative) - Carlyle Commodities Corp. Shares | 3 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 CAD ($) | Mar. 31, 2021 CAD ($) | |
Statement [Line Items] | ||||
Fair value increase/decrease | $ 98,524 | $ 68,163 | ||
Fair value | $ 409,817 | $ 311,293 |
AMOUNTS RECEIVABLE AND OTHER _3
AMOUNTS RECEIVABLE AND OTHER ASSETS (Details) - CAD ($) | Jun. 30, 2022 | Mar. 31, 2022 |
Amounts Receivable and Other Assets | ||
Sales tax refundable | $ 81,333 | $ 25,354 |
Contributions receivable (note 7 (b)) | 0 | 1 |
Prepaid insurance and expense | 51,123 | 23,462 |
Total | $ 132,456 | $ 48,817 |
EXPLORATION AND EVALUATION EX_2
EXPLORATION AND EVALUATION EXPENSES AND COST RECOVERIES (Details Narrative) - CAD ($) | 1 Months Ended | 3 Months Ended | |||||
May 11, 2021 | Dec. 31, 2019 | Nov. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Nov. 30, 2016 | Jun. 30, 2022 | |
Statement [Line Items] | |||||||
Project costs | $ 2,538,247 | ||||||
Earned fee | $ 239,835 | ||||||
GFTECAgreement [Member] | |||||||
Statement [Line Items] | |||||||
Common shares issue | 5,000,000 | ||||||
Owenership percentage | 100% | ||||||
Percentage of property purchase | 51% | ||||||
Description of retains profits interest | GFTEC retains a 2.5% net profits interest (“NPI”) royalty on mineral claims comprising approximately 96% of the PINE Property, which are subject to a NSR royalty payable to a former owner (“Underlying NSR”) and a 1% NSR royalty on the balance of the claims that are not subject to the Underlying NSR royalty. The NPI royalty can be reduced to 1.25% at any time through the payment to GFTEC of $2.5 million in cash or shares. The NSR royalty can be reduced to 0.5% through the payment to GFTEC of $2.5 million in cash or shares. | ||||||
JOY District Agreement with Freeport [Member] | |||||||
Statement [Line Items] | |||||||
Owenership percentage | 100% | ||||||
Earning description | Upon Freeport earning such 60% interest, it can elect, in its sole discretion, to earn an additional 10% interest, for a total 70% interest by sole funding a further $75 million within the following five years. | ||||||
Initial interest | 60% | ||||||
Required fund | $ 35,000,000 | ||||||
Work expenditures term | 5 years | ||||||
First yeaar earning amount | $ 4,000,000 | ||||||
IKE Property [Member] | |||||||
Statement [Line Items] | |||||||
Royalty obligation | $ 2,000,000 | ||||||
Royalty interest | 1% | ||||||
Additional royalty interest | 2% | ||||||
Royalty amount payment | $ 4,000,000 | ||||||
Common shares issue | 500,000 | ||||||
Advance royalty payments | $ 50,000 | ||||||
Garanite Property [Member] | |||||||
Statement [Line Items] | |||||||
Royalty obligation | $ 2,000,000 | ||||||
Royalty interest | 1% | 2% | |||||
Additional royalty interest | 2.50% | ||||||
Royalty amount payment | $ 1,500,000 | ||||||
Common shares issue | 300,000 | 5,277,778 | |||||
Owenership percentage | 70% | 100% | |||||
Direct acquisition costs | $ 335,299 | ||||||
Percentage of property purchase | 100% | ||||||
Cash payments | $ 100,000 | $ 1,000,000 | |||||
Aquired percentage | 100% | 100% | |||||
Acquisition costs | $ 168,996 | ||||||
Other Property Transactions [Member] | |||||||
Statement [Line Items] | |||||||
Royalty obligation | $ 500,000 | $ 500,000,000,000 | |||||
Additional royalty interest | 1% | ||||||
Aquired percentage | 100% | ||||||
Non-refundable payment | $ 200,000 | ||||||
Risk free-interest rate | 0.38% | ||||||
Expected volatility | 139% | ||||||
Expected life | 4 years 11 months 23 days | ||||||
Earning description | earn an initial 51% interest in the Windfall Project, comprised of 25 mineral claims located within the IKE District (note 7(a)), by spending US$4.2 million on exploration by October 21, 2022. On May 25, 2021, this option agreement was terminated by mutual consent of both Amarc and the optionee. | ||||||
Description of consideration comprising | Amarc has received consideration comprising total cash of $300,000 from IMC and 5.5 million equity units (common share plus warrant) in Carlyle. The 5.5 million warrants are exercisable at $0.50 per warrant with an expiry date of December 8, 2025. The fair value of the 5.5 million shares of Carlyle on the Closing Date was recorded at $907,500, based on a per share value of $0.165, the closing quote of Carlyle’s common shares on December 16, 2020. The fair value of the 5.5 million warrants of Carlyle on the Closing Date is recorded was $727,000 using the Black-Scholes option pricing model. |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - CAD ($) | Jun. 30, 2022 | Mar. 31, 2022 |
Accounts Payable and Accrued Liabilities | ||
Accounts payable | $ 1,228,501 | $ 175,850 |
Accrued liabilities | 255,664 | 237,428 |
Total | $ 1,484,165 | $ 413,278 |
DIRECTORS LOAN (Details)
DIRECTORS LOAN (Details) - CAD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | |
Directors Loans | |||
Opening balance | $ 644,642 | $ 570,000 | $ 570,000 |
Principal repayments | (350,000) | 0 | |
Transaction costs | (99,191) | 0 | |
Amortization of transaction costs | 18,661 | $ 17,197 | 74,642 |
Closing balance | $ 914,112 | $ 644,642 |
DIRECTORS LOAN (Details 1)
DIRECTORS LOAN (Details 1) - CAD ($) | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Directors Loans | |||
Non-current portion | $ 664,112 | $ 644,642 | $ 644,642 |
Total | $ 664,112 | $ 644,642 |
DIRECTORS LOAN (Details 2)
DIRECTORS LOAN (Details 2) - CAD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | |
Directors Loans | |||
Interest on loan | $ 28,712 | $ 24,932 | |
Amortization of transaction costs | 18,661 | 17,197 | $ 74,642 |
Total | $ 47,373 | $ 42,129 |
DIRECTORS LOAN (Details Narrati
DIRECTORS LOAN (Details Narrative) - CAD ($) | 3 Months Ended | ||||
Dec. 13, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2019 | |
Directors Loans | |||||
Principal balance | $ 914,112 | $ 644,642 | $ 570,000 | $ 1,000,000 | |
Interest rate | 10% | ||||
Interest paid | $ 160,000 | ||||
Loan bonus share issued, share | 16,000,000 | ||||
Loan bonus share expiration | five years | ||||
Exercise price | $ 0.05 | ||||
Loan Amendment Agreement | $ 100,000 | ||||
Loan | $ 1,176,470 | ||||
Bonus warrant exercise price | $ 0.085 | ||||
Increase loan amount to related parties | $ 1,000,000 | ||||
Amount of loan proceed used to pay intial option | 100,000 | ||||
Additional option payment | 900,000 | ||||
Total option payment | $ 100,000 | ||||
Percent of NSR royality | 2% | ||||
Capped interest rate | 1.50% | ||||
Capped amount | $ 10,000,000 |
SHARE CAPITAL AND RESERVES (Det
SHARE CAPITAL AND RESERVES (Details) | 3 Months Ended | |
Jun. 30, 2022 $ / shares | Jun. 30, 2021 $ / shares | |
Share Capital and Reserves | ||
Number of options outstanding, beginning | 2,000,000 | 2,000,000 |
Number of options Granted | 3,480,000 | 0 |
Number of options outstanding, ending | 5,480,000 | 2,000,000 |
Weighted average exercise price outstanding, beginning | $ 0.05 | $ 0.05 |
Weighted average exercise price Granted | 0.12 | 0 |
Weighted average exercise price outstanding, ending | $ 0.09 | $ 0.05 |
SHARE CAPITAL AND RESERVES (D_2
SHARE CAPITAL AND RESERVES (Details 1) | 3 Months Ended | ||
Jun. 30, 2022 $ / shares | Mar. 31, 2022 $ / shares | Mar. 31, 2021 $ / shares | |
Statement [Line Items] | |||
Number of options outstanding, beginning | 5,480,000 | 2,000,000 | 2,000,000 |
Weighted average remaining contractual life outstanding (years) | 2 years 10 months 13 days | ||
Number of options exercisable | 5,480,000 | ||
Weighted average remaining contractual life exercisable (years) | 2 years 10 months 13 days | ||
Weighted average exercise price outstanding, beginning | $ 0.05 | $ 0.05 | |
Exercise Price 1 | |||
Statement [Line Items] | |||
Number of options outstanding, beginning | 2,000,000 | ||
Weighted average remaining contractual life outstanding (years) | 2 years 3 months 7 days | ||
Number of options exercisable | 2,000,000 | ||
Weighted average remaining contractual life exercisable (years) | 0 years | ||
Weighted average exercise price outstanding, beginning | $ 0.05 | ||
Exercise Price 2 | |||
Statement [Line Items] | |||
Number of options outstanding, beginning | 2,580,000 | ||
Weighted average remaining contractual life outstanding (years) | 2 years 8 months 8 days | ||
Number of options exercisable | 2,580,000 | ||
Weighted average remaining contractual life exercisable (years) | 2 years 8 months 8 days | ||
Weighted average exercise price outstanding, beginning | $ 0.12 | ||
Exercise Price 3 | |||
Statement [Line Items] | |||
Number of options outstanding, beginning | 900,000 | ||
Weighted average remaining contractual life outstanding (years) | 4 years 8 months 8 days | ||
Number of options exercisable | 900,000 | ||
Weighted average remaining contractual life exercisable (years) | 0 years | ||
Weighted average exercise price outstanding, beginning | $ 0.12 |
SHARE CAPITAL AND RESERVES (D_3
SHARE CAPITAL AND RESERVES (Details 2) | Jun. 30, 2022 USD ($) $ / shares | Mar. 31, 2022 USD ($) $ / shares |
Statement [Line Items] | ||
Share purchase warrants outstanding | 6,176,470 | 5,000,000 |
Exercise Price 1 | ||
Statement [Line Items] | ||
Share purchase warrants outstanding | 16,000,000 | 16,000,000 |
Exercise price | $ 0.05 | $ 0 |
Exercise Price 2 | ||
Statement [Line Items] | ||
Share purchase warrants outstanding | 1,176,470 | 0 |
Exercise price | $ 0.085 | $ 0 |
Exercise Price 3 | ||
Statement [Line Items] | ||
Exercised | $ | $ (11,000,000) | $ (11,000,000) |
SHARE CAPITAL AND RESERVES (D_4
SHARE CAPITAL AND RESERVES (Details Narrative) | 1 Months Ended | 12 Months Ended | |||||
Mar. 09, 2022 USD ($) $ / shares shares | Dec. 02, 2021 CAD ($) shares | Oct. 02, 2020 CAD ($) shares | Aug. 20, 2020 CAD ($) shares | Dec. 31, 2020 CAD ($) | Jun. 30, 2022 CAD ($) | Mar. 31, 2022 CAD ($) | |
Statement [Line Items] | |||||||
Stock issued to exercise of warrants, shares | shares | 6,000,000 | 2,000,000 | 3,000,000 | ||||
Stock issued to exercise of warrants, proceeds | $ 300,000 | $ 100,000 | $ 150,000 | ||||
Stock issaunce costs | $ 100 | ||||||
Renounced to shareholder | $ 167,000 | ||||||
Flow-through proceeds outstanding | $ 383,000 | $ 383,000 | |||||
Share Purchase Option | |||||||
Statement [Line Items] | |||||||
Stock option granted | shares | 34,800 | ||||||
Aggregate common shares acquire | shares | 34,800 | ||||||
Share price | $ / shares | $ 0.12 | ||||||
Stock granted term dscription | three to five years | ||||||
Stock granted to insiders | 50% | ||||||
Fair value of warrants | $ 366,912 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - CAD ($) | Jun. 30, 2022 | Mar. 31, 2022 |
Statement [Line Items] | ||
Balances due to related parties | $ 515,812 | $ 472,303 |
Hunter Dickinson Services Inc. | ||
Statement [Line Items] | ||
Balances due to related parties | 369,247 | 345,289 |
Thomas Wilson (CFO Fees) [Member] | ||
Statement [Line Items] | ||
Balances due to related parties | 3,150 | 4,725 |
Robert Dickinson (Interest Payable) | ||
Statement [Line Items] | ||
Balances due to related parties | 139,972 | 111,260 |
United Mineral Services Ltd. | ||
Statement [Line Items] | ||
Balances due to related parties | $ 3,443 | $ 11,029 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details 1) - Hunter Dickinson Services Inc. - CAD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement [Line Items] | ||
Services received as requested by the Company | $ 186,000 | $ 192,000 |
Information technology-infrastructure and support services | 15,000 | 22,000 |
Office rent | 10,000 | 2,000 |
Reimbursement, at cost, of third-party expenses incurred by HDSI on behalf of the Company | 36,000 | 24,000 |
Transactions with related party | $ 247,000 | $ 240,000 |
RELATED PARTY TRANSACTIONS (D_3
RELATED PARTY TRANSACTIONS (Details Narrative) - CAD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Directors and Officers | ||
Statement [Line Items] | ||
Stock options issued | 850,000 | 0 |
Share-based compensation expense | $ 12,778 | $ 0 |
Chief Financial Officer | ||
Statement [Line Items] | ||
Company incurred fees | $ 9,000 | $ 4,000 |
Supplementary Information to _3
Supplementary Information to the Consolidated Statements of Loss (Details) - CAD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement [Line Items] | ||
Exploration and evaluation | $ 1,809,381 | $ 793,568 |
Administration | 146,576 | 126,492 |
Employees [Member] | ||
Statement [Line Items] | ||
Exploration and evaluation | 508,000 | 247,000 |
Administration | 53,000 | 63,000 |
Total | $ 561,000 | $ 310,000 |
SUPPLEMENTARY INFORMATION TO _4
SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF LOSS (Details 1) - CAD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Supplementary Information to the Consolidated Statements of Loss (Details) | ||
Salaries and benefits | $ 53,000 | $ 56,000 |
Data processing and retention | 4,000 | 6,000 |
Insurance | 7,000 | 12,000 |
Other office expenses | 4,000 | 3,000 |
Total | $ 68,000 | $ 77,000 |
OFFICE LEASE RIGHT OF USE ASSET
OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details) - CAD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Mar. 31, 2022 | |
OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details) | ||
Addition | $ 100,877 | |
Amortization | $ (5,044) | (18,494) |
Ending period Right Of Use Of Assets | $ 77,339 | $ 82,383 |
OFFICE LEASE RIGHT OF USE ASS_2
OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details 1) - CAD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Mar. 31, 2022 | |
OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details) | ||
Beginning period of lease liability | $ 90,027 | $ 0 |
Addition | 100,877 | |
Lease payment- base rent portion | (6,605) | (21,288) |
Lease liability - accretion expense | 2,596 | 10,438 |
Ending period of lease liability | 86,019 | 90,027 |
Current portion | 17,978 | 27,819 |
Long term portion | $ 68,041 | $ 62,208 |
OFFICE LEASE RIGHT OF USE ASS_3
OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details 2) - CAD ($) | 3 Months Ended | |
May 01, 2021 | Jun. 30, 2022 | |
OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details) | ||
2023 | $ 20,141 | |
2024 | 28,056 | |
2025 | 28,165 | |
2026 | 28,165 | |
2027 | 2,347 | |
Total undiscounted lease payments | 106,874 | |
Less: inputed interest | (20,855) | |
Lease liability | $ 100,877 | $ 86,019 |
OFFICE LEASE RIGHT OF USE ASS_4
OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details Narrative) - CAD ($) | 3 Months Ended | |
May 01, 2021 | Jun. 30, 2022 | |
OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details) | ||
Lease liability | $ 100,877 | $ 86,019 |
Undiscounted value | $ 134,766 | |
Discount rate | 12% | |
Description pf lease payments | lease payment from May 1, 2021 to April 29, 2026, the end of the lease term less abatement granted by HDSI |
EVENTS AFTER THE REPORTING PE_2
EVENTS AFTER THE REPORTING PERIOD (Details Narrative) - Jul. 08, 2022 - Kin - Events After Reporting Period | CAD ($) shares | $ / shares |
Statement [Line Items] | ||
Servise fees payment | $ | $ 12,500 | |
Stock options grant | shares | 1,000,000 | |
Stock price | $ / shares | $ 0.11 | |
Vesting term | five-year | |
Description of stock option | vesting in three instalments of 33%, 33% and 34%, with the first instalment vesting 90 days after the Effective Date of the Investor Relations Agreement. |