Cover
Cover | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | Fury Gold Mines Limited |
Entity Central Index Key | 0001514597 |
Document Type | 40-F |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Emerging Growth Company | true |
Entity Current Reporting Status | Yes |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
Entity Ex Transition Period | false |
Entity Common Stock Shares Outstanding | 139,470,950 |
Document Annual Report | true |
Entity File Number | 001-38145 |
Entity Incorporation State Country Code | Z4 |
Entity Address Address Line 1 | Suite 1630 |
Entity Address Address Line 2 | 1177 West Hastings Street |
Entity Address City Or Town | Vancouver |
Entity Address State Or Province | BC |
Entity Address Postal Zip Code | V6E 2K3 |
City Area Code | 778 |
Icfr Auditor Attestation Flag | false |
Local Phone Number | 729-0600 |
Security 12b Title | Common Shares, no par value |
Security Exchange Name | NYSE |
Entity Interactive Data Current | Yes |
Document Registration Statement | false |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Auditor Name | Deloitte LLP |
Auditor Location | Vancouver, Canada |
Auditor Firm Id | 1208 |
Business Contact [Member] | |
Document Information Line Items | |
Entity Address Address Line 1 | Suite 400 |
Entity Address Address Line 2 | 2711 Centerville Road |
Entity Address City Or Town | Wilmington |
Entity Address State Or Province | DE |
Entity Address Postal Zip Code | 19808 |
City Area Code | 800 |
Local Phone Number | 927-9800 |
Contact Personnel Name | Corporation Service Company |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 10,309,000 | $ 3,259,000 |
Marketable securities | 582,000 | 605,000 |
Accounts receivable | 369,000 | 322,000 |
Prepaid expenses and deposits | 602,000 | 502,000 |
Total current assets | 11,862,000 | 4,688,000 |
Non-current assets: | ||
Restricted cash | 144,000 | 130,000 |
Accounts receivable | 0 | 50,000 |
Property and equipment | 931,000 | 1,191,000 |
Prepaid expenses and deposits | 42,000 | 266,000 |
Mineral property interests | 145,190,000 | 160,693,000 |
Investments in associates | 42,430,000 | 0 |
Non Current Assets | 188,737,000 | 162,330,000 |
Total assets | 200,599,000 | 167,018,000 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,148,000 | 1,888,000 |
Lease liability | 160,000 | 104,000 |
Flow-through share premium liability | 0 | 3,124,000 |
Total current liabilities | 1,308,000 | 5,116,000 |
Non-current liabilities: | ||
Lease liability | 227,000 | 357,000 |
Provision for site reclamation and closure | 4,271,000 | 4,190,000 |
Total liabilities | 5,806,000 | 9,663,000 |
Equity: | ||
Share capital | 306,328,000 | 295,464,000 |
Share option and warrant reserve | 20,309,000 | 18,640,000 |
Accumulated other comprehensive loss | 3,000 | 0 |
Deficit | 131,841,000 | 156,749,000 |
Total equity | 194,793,000 | 157,355,000 |
Total liabilities and equity | $ 200,599,000 | $ 167,018,000 |
Consolidated Statements of (Ear
Consolidated Statements of (Earnings) Loss and Comprehensive (Income) Loss $ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 CAD ($) $ / shares | Dec. 31, 2021 CAD ($) $ / shares | |
Operating expenses: | ||
Exploration and evaluation | $ 9,217 | $ 15,355 |
Fees, salaries and other employee benefits | 3,199 | 3,694 |
Insurance | 728 | 637 |
Legal and professional | 804 | 1,983 |
Marketing and investor relations | 809 | 1,093 |
Office and administration | 398 | 606 |
Regulatory and compliance | 218 | 371 |
Other expenses (income) | 15,373 | 23,739 |
Other income, net: | ||
Net gain on disposition of mineral interests | 48,390 | 0 |
Unrealized net loss on marketable securities | 135 | 869 |
Realized net loss on marketable securities | 0 | 311 |
Net loss from associates | 5,880 | 0 |
Amortization of flow-through share premium | 3,124 | 4,520 |
Impairment expense | 5,506 | 42 |
Accretion on provision for site reclamation and closure | 94 | 69 |
Interest expense | 115 | 98 |
Interest income | 228 | 36 |
Foreign exchange loss | 9 | 14 |
Other | (91) | 39 |
Loss From Continuing Operations Before Taxes | (40,094) | (3,114) |
(Earnings) loss before taxes | (24,721) | 20,625 |
Exploration tax credits refunded | (187) | (3,835) |
Net (earnings) loss for the year | (24,908) | 16,790 |
Other comprehensive loss, net of tax | ||
Unrealized currency loss on translation of foreign operations | 3 | 0 |
Total comprehensive (income) loss for the year | $ (24,905) | $ 16,790 |
(Earnings) loss per share: | ||
Basic and diluted (earnings) loss per share | $ / shares | $ (0.18) | $ 0.14 |
Consolidated Statements of Equi
Consolidated Statements of Equity - CAD ($) shares in Thousands, $ in Thousands | Total | Number of Common Shares | Share option and warrant reserve | Accumulated other comprehensive loss | Retained Earnings (Accumulated Deficit) |
Balance, shares at Dec. 31, 2020 | 117,823,857 | ||||
Balance, amount at Dec. 31, 2020 | $ 166,272 | $ 294,710 | $ 11,521 | $ 0 | $ (139,959) |
Statement [Line Items] | |||||
Comprehensive loss for the year | (16,790) | $ 0 | 0 | 0 | (16,790) |
Shares issued pursuant to the purchase of a royalty, net of share issue costs, shares | 328,767 | ||||
Shares issued pursuant to the purchase of a royalty, net of share issue costs, amount | 290 | $ 290 | 0 | 0 | 0 |
Shares issued pursuant to private placement, net of share issue costs, shares | 7,461,450 | ||||
Shares issued pursuant to private placement, net of share issue costs, amount | 5,385 | $ 5,385 | 0 | 0 | 0 |
Share options exercised, shares | 5,834 | ||||
Share options exercised, amount | 5 | $ 6 | (1) | 0 | 0 |
Warrants exercised, shares | 101,042 | ||||
Warrants exercised, amount | 147 | $ 159 | (12) | 0 | 0 |
Fair value of warrants issued | 0 | (5,086) | 5,086 | 0 | 0 |
Share-based compensation | 2,046 | 0 | 2,046 | 0 | 0 |
Balance, amount at Dec. 31, 2021 | 157,355 | $ 295,464 | 18,640 | 0 | (156,749) |
Balance, shares at Dec. 31, 2021 | 125,720,950 | ||||
Statement [Line Items] | |||||
Comprehensive loss for the year | 24,905 | $ 0 | 0 | (3) | 24,908 |
Share-based compensation | 1,669 | $ 0 | 1,669 | 0 | 0 |
Shares issued pursuant to offering, net of share issue costs (note 15b(i)), shares | 13,750,000 | ||||
Shares issued pursuant to offering, net of share issue costs (note 15b(i)), amount | 10,864 | $ 10,864 | 0 | 0 | 0 |
Balance, amount at Dec. 31, 2022 | $ 194,793 | $ 306,328 | $ 20,309 | $ (3) | $ (131,841) |
Balance, shares at Dec. 31, 2022 | 139,470,950 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities: | ||
Earnings (loss) for the year | $ 24,908 | $ (16,790) |
Adjusted for: | ||
Interest income | (228) | (36) |
Items not involving cash: | ||
Net gain on disposition of mineral interests | (48,390) | 0 |
Unrealized net loss on marketable securities | 135 | 869 |
Realized net loss on marketable securities | 0 | 311 |
Depreciation | 341 | 371 |
Impairment expense | 5,506 | 42 |
Net loss from associates | 5,880 | 0 |
Amortization of flow-through share premium | 3,124 | 4,520 |
Accretion of provision for site reclamation and closure | 94 | 69 |
Share-based compensation | 1,669 | 2,046 |
Interest expense | 100 | 98 |
Other | 0 | (1) |
Changes in non-cash working capital | (903) | 266 |
Cash (used in) operating activities | (14,012) | (17,273) |
Investing activities: | ||
Interest income | 228 | 36 |
Acquisition of mineral interests, net of cash acquired | (1,281) | (1,210) |
Option payment received | 310 | 150 |
Acquisition of Homestake Ridge royalty, inclusive of fees | 0 | (110) |
Acquisition of Universal Mineral Services Ltd | (1) | 0 |
Proceeds from disposition of mineral interests, net of transaction costs | (4,479) | 0 |
Proceeds from disposition of investment in associate, net of transaction costs | 6,774 | 0 |
Proceeds from sale of marketable securities | 0 | 1,000 |
Marketable securities additions | (60) | 0 |
Property and equipment additions, net of disposals | 0 | (87) |
Decrease (increase) in restricted cash | (14) | 35 |
Cash provided by (used in) investing activities | 10,435 | (186) |
Financing activities: | ||
Proceeds from issuance of common shares, net of costs | 10,864 | 5,385 |
Lease payments | (235) | (180) |
Proceeds from share option and warrant exercises | 0 | 152 |
Cash provided by financing activities | 10,629 | 5,357 |
Effect of foreign exchange on cash | 2 | 0 |
(Increase) decrease in cash | 7,050 | (12,102) |
Cash, beginning of the year | 3,259 | 15,361 |
Cash, end of the year | $ 10,309 | $ 3,259 |
Nature of operations
Nature of operations | 12 Months Ended |
Dec. 31, 2022 | |
Nature of operations | |
Nature of Operations | Note 1: Nature of operations Fury Gold Mines Limited (the “Company” or “Fury Gold”) was incorporated on June 9, 2008, under the Business Corporations Act The Company’s principal business activity is the acquisition and exploration of resource projects in Canada. At December 31, 2022, the Company had two principal projects: Eau Claire in Quebec and Committee Bay in Nunavut. The Company also holds a 50.022% interest in the Eleonore South Joint Venture (“ESJV”). Sale of Homestake Resources Corporation (“Homestake Resources”) On December 6, 2021, the Company entered into a definitive agreement (the "Purchase Agreement") with Dolly Varden Silver Corporation (“Dolly Varden”) pursuant to which the Company agreed to sell to Dolly Varden a 100% interest in Fury Gold's wholly owned subsidiary, Homestake Resources in exchange for $5,000 in cash and 76,504,590 common shares in Dolly Varden. Homestake Resources is the owner of a 100% interest in the Homestake Ridge gold-silver project which is located adjacent to the Dolly Varden Project owned by Dolly Varden in the Golden Triangle, British Columbia (“the Dolly Varden Transaction”). The Dolly Varden Transaction completed on February 25, 2022. As a result, Fury acquired the 76,504,590 Dolly Varden Shares on February 25, 2022, representing approximately 35.33% of the Dolly Varden Shares outstanding and 32.88% of Dolly Varden on a fully diluted basis as of that date. In connection with the Dolly Varden Transaction and as contemplated in the Purchase Agreement, Dolly Varden and Fury Gold have also entered into an investor rights agreement dated February 25, 2022 (the "Investor Rights Agreement"). Pursuant to its obligations under the Investor Rights Agreement, Dolly Varden has appointed Forrester “Tim” Clark, the Chief Executive Officer (“CEO”) of Fury Gold, and Michael Henrichsen, the Chief Geological Officer of Fury Gold, to the board of directors of Dolly Varden. On October 13, 2022, the Company announced that it had completed a non-brokered sale agreement to sell 17,000,000 common shares of Dolly Varden at $0.40 per share, representing approximately 7.4% of the outstanding common shares (note 11). The net proceeds received by the Company upon close of the transaction was $6,775. As of December 31, 2022, the Company held a 23.5% interest in Dolly Varden. Acquisition of 25% equity interest in Universal Mineral Services Ltd. (“UMS”) On April 1, 2022, the Company purchased a 25% share interest in UMS, a private shared-services provider for nominal consideration (note 11). The remaining 75% of UMS is owned equally by three other junior resource issuers, namely Tier One Silver Inc, Coppernico Metals Inc, and Torq Resources Inc. who share a head office location in Vancouver, BC. Previously, UMS had been privately owned by a director in common, Mr. Ivan Bebek, then subsequently from January 1, 2022, by Mr. Steve Cook, another director in common, until March 31, 2022. UMS is the private company through which its shareholders, including Fury Gold, share geological, financial, and transactional advisory services as well as administrative services on a full, cost recovery basis. Having these services available through UMS, on an as needed basis, allows the Company to maintain a more efficient and cost-effective corporate overhead structure by hiring fewer full-time employees and engaging outside professional advisory firms less frequently. The agreement has an indefinite term and can be terminated by either party upon providing 180 days notice. Many of the Company’s key personnel are now, or will be, directly employed by UMS and seconded to the Company and other members of the group. Increase in ownership interest of ESJV and amended joint venture arrangement On September 12, 2022, the Company and its joint operation partner Newmont Corporation (“Newmont”), through their respective subsidiaries, completed the acquisition of the remaining approximately 23.77% participating interest of Azimut Exploration Inc. in the ESJV, on a pro-rata basis. As a result of the transaction, the 100% ESJV participating interests are now held 50.022% by the Company and 49.978% by Newmont, with Fury Gold remaining operator under an amended and restated joint operating agreement. Response to COVID-19 While the Company continues to monitor developments with regards to COVID-19 and permitted activities, there were no impacts to the Company’s operating activities in 2022 arising from COVID-19. |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2022 | |
Basis of presentation | |
Basis of Presentation | Note 2: Basis of presentation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), effective for the year ended December 31, 2022. IFRS comprises IFRSs, International Accounting Standards (“IASs”), and interpretations issued by the IFRS Interpretations Committee (“IFRICs”), and the former Standing Interpretations Committee (“SICs”). These consolidated financial statements were approved and authorized for issuance by the Board of Directors of the Company on March 24, 2023. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Significant accounting policies | |
Significant Accounting Policies | Note 3: Significant accounting policies a) Basis of measurement These consolidated financial statements have been prepared on a historical cost basis, except for those assets and liabilities that are measured at revalued amounts or fair values at the end of each reporting period. b) Currency of presentation The Company’s presentation currency is the Canadian (“CAD”) dollar. All amounts, with the exception of per share amounts, are expressed in thousands of Canadian dollars, unless otherwise stated. References to US$ are to United States (“US”) dollars. c) Basis of preparation and consolidation These consolidated financial statements include the accounts of the Company and its subsidiaries. Subsidiaries are entities controlled by the Company. Control exists when the Company has power over an investee, when the Company is exposed, or has rights, to variable returns from the investee and when the Company has the ability to affect those returns through its power over the investee. Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition up to the effective date of disposition or loss of control. All intercompany balances and transactions have been eliminated. The subsidiaries (with a beneficial interest of 100%) of the Company at December 31, 2022 were as follows: Subsidiary Place of incorporation Functional currency North Country Gold Corp. (“North Country”) BC, Canada CAD Eastmain Resources Inc. (“Eastmain”) ON, Canada CAD Eastmain Mines Inc. (“Eastmain Mines”) (a) Canada CAD Fury Gold USA Limited (“Fury Gold USA”) (b) Delaware, U.S.A. USD (a) (b) Investments in associates and joint arrangements These interim financial statements also include the following joint arrangements and investments in associates: Associates and joint arrangement Ownership interest Location Classification and accounting method Dolly Varden (a) 23.5% BC, Canada Associate; equity method UMS 25.0% BC, Canada Associate; equity method ESJV (b) 50.022% Quebec, Canada Joint operation (a) (b) d) Foreign currency translation The financial statements of the Company and each of its subsidiaries are prepared in its functional currency determined on the basis of the currency of the primary economic environment in which such entities operate. The presentation and functional currency of the Company and each of its subsidiaries, with the exception of Fury Gold USA, is the Canadian dollar. Fury Gold USA’s functional currency has been determined to be the US dollar. Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing at the transaction dates. At each reporting date, monetary items denominated in foreign currencies are translated into the entity’s functional currency at the then prevailing rates and non-monetary items measured at historical cost are translated into the entity’s functional currency at rates in effect at the date the transaction took place. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are included in the consolidated statements of loss and comprehensive loss for the period in which they arise. e) Cash and cash equivalents Cash and cash equivalents consist of cash and highly liquid short-term investments that are readily convertible to cash and have maturities with terms of less than ninety days and/or with original maturities over ninety days but redeemable on demand without penalty. As at December 31, 2022 and 2021, the Company did not have any cash equivalents. f) Property and equipment Property and equipment are stated at cost less accumulated amortization and impairment losses. Amortization is calculated using the straight-line method over the estimated useful lives as follows: · Computer equipment 3 years · Machinery and equipment 5-10 years · Right-of-use (“ROU”) assets the lease term, unless the transfer of the asset ownership is reasonably certain at the end of the lease term, whereupon depreciation is over the useful life. g) Mineral property interests and exploration expenditures Title to mineral properties involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing historical characteristic of many properties. The Company has investigated title to all of its mineral properties and, to the best of its knowledge, title to all of its properties is in good standing. The Company accounts for mineral property interests in accordance with IFRS 6 – Exploration for and evaluation of mineral properties Costs directly related to acquiring the legal right to explore a mineral property including acquisition of licenses, mineral rights, and similar acquisition costs are recognized and capitalized as mineral property interests. Acquisition costs incurred in obtaining the legal right to explore a mineral property are deferred until the legal right is granted and thereon reclassified to mineral property interests. Transaction costs incurred in acquiring an asset are deferred until the transaction is completed and then included in the purchase price of the asset acquired. Once the legal right to explore a property has been acquired, costs directly related to exploration and evaluation activities including, but not limited to, researching and analyzing existing exploration data, conducting geological studies, exploration drilling and sampling, and payments made to contractors and consultants in connection with the exploration and evaluation of the property, are expensed in the period in which they are incurred as exploration and evaluation costs on the consolidated statements of loss and comprehensive loss. Costs not directly attributable to exploration and evaluation activities, including general administrative overhead costs, are expensed as administrative costs in the period in which they occur. As the Company currently has no operational income, any incidental revenues earned in connection with exploration activities are applied as a reduction to exploration and evaluation costs. When a project is deemed to no longer have commercially viable prospects to the Company, all capitalized acquisition costs in respect of that project are deemed to be impaired. As a result, those costs, in excess of the estimated recoverable amount, are expensed to the consolidated statements of loss and comprehensive loss. The Company assesses mineral property interests for impairment when facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and its value in use. Once the technical feasibility and commercial viability of extracting the mineral resources has been determined, the property is considered to be a mine under development at which point the assets and further related costs no longer fall under the guidance of IFRS 6. (h) Joint arrangement The Company conducts a portion of its business through a joint arrangement where the parties are bound by contractual arrangements establishing joint control with decisions about the relevant activities that significantly affect the returns of the investee requiring unanimous consent. A joint arrangement is classified as either a joint operation or a joint venture, subject to the terms that govern each investor's rights and obligations in the arrangement. In a joint operation, the investor has rights and obligations to the separate assets and liabilities of the investee, therefore the Company recognizes its share of the assets, liabilities, revenue, and expenses of the joint arrangement. (i) Investments in associates The Company conducts a portion of its business through equity interests in associates. An associate is an entity over which the Company has significant influence and is neither a subsidiary nor a joint venture. The Company has significant influence when it has the power to participate in the financial and operating policy decisions of the associate but does not have control or joint control over those policy decisions. The Company accounts for its investments in associates using the equity method. Under the equity method, the Company’s investment in an associate is initially recognized at cost and subsequently increased or decreased to recognize the Company's share of earnings and losses of the associate, after any adjustments necessary to give effect to uniform accounting policies, and for impairment losses after the initial recognition date. The Company’s share of an associate’s losses that are in excess of its investment in the associate are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. The Company's share of earnings and losses of its associate are recognized in net (earnings)/loss during the period. j) Impairment of non-financial assets At each reporting date, the Company reviews the carrying amounts of its non-financial assets to determine whether there are any indicators of impairment. If any such indicator exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. Where the asset does not generate cash inflows that are independent from other assets, the Company estimates the recoverable amount of the CGU to which the asset belongs. Any intangible asset with an indefinite useful life is tested for impairment annually and whenever there is an indication that the asset may be impaired. An asset’s recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted. If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount is reduced to the recoverable amount and an impairment loss is recognized immediately in the consolidated statements of loss and comprehensive loss. Where an impairment subsequently reverses, the carrying amount is increased to the revised estimate of recoverable amount but only to the extent that this does not exceed the carrying value that would have been determined if no impairment had previously been recognized. A reversal of impairment is recognized in the consolidated statements of loss and comprehensive loss. k) Leases The Company assesses if a contract is or contains a lease at inception of the contract. Control is considered to exist if the contract conveys the right to control the use of an identified asset during the term of the lease. When a lease is identified, a right-of-use asset and a corresponding lease liability are recognized, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognizes the lease payments as an expense in profit or loss on a straight-line basis. Right-of-use assets, which are included in property and equipment, are recognized at cost, which is comprised of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs and decommissioning and restoration costs, less any lease incentives received. Right-of-use assets are depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis, except where ownership is expected to be transferred at the end of the lease, whereby the asset is depreciated over its useful life. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date discounted by using the rate implicit in the lease or the Company’s incremental borrowing rate, if the rate implicit in the lease cannot be determined. Lease payments included in the measurement of the lease liability are: · fixed payments (including in-substance fixed payments), less any lease incentives receivable; · variable payments that depend on an index or rate; · amount expected to be payable by the lessee under residual value guarantees; · exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and · penalties for terminations, unless the Company is reasonably certain the options will not be exercised. l) Provisions Provisions are recorded when a present legal or constructive obligation exists as a result of past events where it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. m) Provision for site reclamation and closure An obligation to incur rehabilitation and site restoration costs arises when an environmental disturbance is caused by the exploration, development, or on-going production of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their net present value, are provided for and capitalized at the start of each project as soon as the obligation to incur such costs arises, as well when changes in estimates occur year over year. These costs are charged to the consolidated statements of loss and comprehensive loss over the life of the operation through amortization and the unwinding of the discount in the provision. n) Flow-through common shares Canadian income tax legislation permits companies to issue flow-through instruments whereby the income tax deductions generated by eligible expenditures of the Company, defined in the Income Tax Act o) (Earnings) Loss per share Basic (earnings) loss per share is calculated by dividing the net (earnings) loss available to common shareholders by the weighted average number of shares outstanding during the reporting period. The diluted loss per share is calculated by dividing the net loss available to common shareholders by the weighted average number of shares outstanding on a diluted basis. The weighted average number of shares outstanding on a diluted basis takes into account the additional shares for the assumed exercise of share options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding share options were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. p) Share-based compensation From time to time, the Company grants share options to employees and non-employees. An individual is classified as an employee, versus a non-employee, when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. The fair value of share options, measured using the Black-Scholes option pricing model at the date of grant, is charged to the consolidated statements of loss and comprehensive loss over the vesting period. Performance vesting conditions and forfeitures are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognized over the vesting period is based on the number of options that eventually vest. Where the terms and conditions of options are modified before they vest, any change in the fair value of the options, measured immediately before and after the modification, is also charged to the consolidated statements of loss and comprehensive loss over the remaining vesting period. Equity instruments granted to non-employees are recorded in the consolidated statements of loss and comprehensive loss at the fair value of the goods or services received, unless they are related to the issuance of shares. Costs related to the issuance of shares are recorded as a reduction of share capital. When the value of goods or services received in exchange for a share-based payment cannot be reliably estimated, the fair value is measured by use of a valuation model. The expected life used in the model is adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioral considerations. All equity-settled share-based payments are recorded in the share option and warrant reserve until exercised. Upon exercise, shares are issued from treasury and the amount previously recorded in share option and warrant reserve is reclassified to share capital along with any consideration paid. q) Income taxes Income tax reported in the consolidated statements of loss and comprehensive loss for the period presented comprises current and deferred income tax. Income tax is recognized in the consolidated statements of loss and comprehensive loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current income tax for each taxable entity in the Company is based on the local taxable income at the local statutory tax rate enacted or, substantively enacted, at the reporting date and includes any adjustments to tax payable or recoverable with regards to previous periods. Deferred income tax is determined using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred income tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using the expected future tax rates enacted or substantively enacted at the reporting date. A deferred income tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred income tax assets and liabilities are offset only when there is a legally enforceable right to set off current tax assets against current tax liabilities, when they relate to income taxes levied by the same taxation authority and the Company intends to settle its tax assets and liabilities on a net basis. r) Financial instruments The Company recognizes financial assets and liabilities on its consolidated statements of financial position when it becomes a party to the contract creating the asset or liability. On initial recognition, all financial assets and liabilities are recorded by the Company at fair value, net of attributable transaction costs, except for financial assets and liabilities classified as fair value through profit or loss for which transaction costs are expensed in the period in which they are incurred. i) Amortized cost Financial assets that meet the following conditions are measured subsequently at amortized cost: · the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and · the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. Interest income is recognized using the effective interest method. The Company's financial assets at amortized cost primarily include cash, restricted cash, accounts receivable, and deposits. ii) Fair value through other comprehensive income (”FVTOCI") Financial assets that meet the following conditions are measured at FVTOCI: · the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and · the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Company does not have any financial assets classified as FVTOCI at December 31, 2022. iii) Financial assets measured subsequently at fair value through profit or loss (“FVTPL”) By default, all other financial assets are measured subsequently at FVTPL. The Company, at initial recognition, may also irrevocably designate a financial asset as measured at FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. Financial assets measured at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or loss to the extent they are not part of a designated hedging relationship. Fair value is determined in the manner described in note 20. iv) Financial liabilities and equity Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements, and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue, or cancellation of the Company’s own equity instruments. Financial liabilities that are not contingent consideration of an acquirer in a business combination, held for trading, or designated as at FVTPL, are measured at amortized cost using the effective interest method. The Company's financial liabilities measured at amortized cost primarily include accounts payable and accrued liabilities. v) Impairment The Company recognizes a loss allowance for expected credit losses on its financial assets. The amount of expected credit losses is updated at each reporting period to reflect changes in credit risk since initial recognition of the respective financial instruments. (s) Other Comprehensive (Income) loss Other comprehensive (income) loss is the change in net assets arising from transactions and other events and circumstances from non-owner sources. Comprehensive (income) loss comprises net (earnings) loss and other comprehensive loss. Foreign currency translation differences arising on translation of subsidiaries with a different functional currency are also included in other comprehensive loss. |
Changes in accounting standards
Changes in accounting standards | 12 Months Ended |
Dec. 31, 2022 | |
Changes in accounting standards | Note 4: Changes in accounting standards Application of new and revised accounting standards: The Company has adopted the following amended accounting standards and policies effective January 1, 2022. There was no impact to the Company’s financial statements for the year ended December 31, 2022 upon adoption. Annual Improvements to IFRSs 2018-2020 Cycle Annual Improvements to IFRS Standards 2018–2020 makes amendments to the following standards: IFRS 1 - First-time Adoption of International Financial Reporting Standards: The amendment permits a subsidiary that applies paragraph D16(a) of IFRS 1 to measure cumulative translation differences using the amounts reported by its parent, based on the parent’s date of transition to IFRSs. IFRS 9 - Financial Instruments: Fees in the ‘10 per cent’ test for derecognition of financial liabilities. The amendment clarifies which fees an entity includes when it applies’ the ‘10 per cent’ test in paragraph B3.3.6 of IFRS 9 in assessing whether to derecognise a financial liability. An entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf. IFRS 16 - Leases: The amendment to Illustrative Example 13 accompanying IFRS 16 removes from the example the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives are illustrated in that example. IAS 41 – Agriculture: The amendment removes the requirement in paragraph 22 of IAS 41 for entities to exclude taxation cash flows when measuring the fair value of a biological asset using a present value technique. This will ensure consistency with the requirements in IFRS 13. Amendments to IAS 16 – Property, Plant and Equipment—Proceeds before Intended Use The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced before that asset is available for use, i.e., proceeds while bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Consequently, an entity recognises such sales proceeds and related costs in profit or loss. The entity measures the cost of those items in accordance with IAS 2 – Inventories The amendments also clarify the meaning of “testing whether an asset is functioning properly”. IAS 16 now specifies this as assessing whether the technical and physical performance of the asset is such that it is capable of being used in the production or supply of goods or services, for rental to others, or for administrative purposes. If not presented separately in the statement of comprehensive income or loss, the financial statements shall disclose the amounts of proceeds and cost included in profit or loss that relate to items produced that are not an output of the entity’s ordinary activities, and which line items in the statement of comprehensive income or loss include such proceeds and cost. The amendments are applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the entity first applies the amendments. The entity shall recognise the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of that earliest period presented. New and amended standards not yet effective: The following new and amended standards, which are not yet effective, have not been applied by the Company in these financial statements. The Company is currently assessing the potential impact(s) on the Company’s financial statements following application. Amendments to IAS 1 – Classification of Liabilities as Current or Non-current The amendments to IAS 1 affect only the presentation of liabilities as current or non-current in the consolidated statements of financial position and not the amount or timing of recognition of any asset, liability, income, or expenses, or the information disclosed about those items. The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period, and introduce a definition of “settlement” to make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets, or services. The amendments are applied retrospectively for annual periods beginning on or after January 1, 2024, with early application permitted. Amendments to IAS 1 – Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements – Disclosure of Accounting Policies The amendments change the requirements in IAS 1 with regard to disclosure of accounting policies. The amendments replace all instances of the term ‘significant accounting policies’ with ‘material accounting policy information’. Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements. The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material. The Board has also developed guidance and examples to explain and demonstrate the application of the ‘four-step materiality process’ described in IFRS Practice Statement 2. The amendments to IAS 1 are effective for annual periods beginning on or after January 1, 2023, with earlier application permitted and are applied prospectively. The amendments to IFRS Practice Statement 2 do not contain an effective date or transition requirements. Amendments to IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors – Definition of Accounting Estimates The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. The definition of a change in accounting estimates was deleted. However, the concept of changes in accounting estimates in the Standard was retained with the following clarifications: · A change in accounting estimate that results from new information or new developments is not the correction of an error; and · The effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors. The amendments are effective for annual periods beginning on or after January 1, 2023 to changes in accounting policies and changes in accounting estimates that occur on or after the beginning of that period, with earlier application permitted. |
Critical accounting estimates a
Critical accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2022 | |
Critical accounting estimates and judgments | Note 5: Critical accounting estimates and judgments The preparation of financial statements in conformity with IFRS requires management to select accounting policies and make estimates and judgments that may have a significant impact on the consolidated financial statements. Estimates are continuously evaluated and are based on management’s experience and expectations of future events that are believed to be reasonable under the circumstances. Actual outcomes may differ from these estimates. Critical accounting judgments exercised in applying accounting policies, apart from those involving estimates, which have the most significant effect on the amounts recognized in these consolidated financial statements are as follows: (a) Functional currency The functional currency for each of the Company’s subsidiaries is the currency of the primary economic environment in which the entity operates. Determination of functional currency may involve certain judgments to determine the primary economic environment and the Company reconsiders the functional currency of its entities if there is a change in events and conditions that determined the primary economic environment. (b) Economic recoverability and probability of future economic benefits of mineral property interests Management has determined that the acquisition of mineral properties and related costs incurred, which have been recognized on the consolidated statements of financial position, are economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefit including geological data, scoping studies, accessible facilities, and existing and future permits. (c) Indications of impairment of assets Assessments of impairment indicators are performed at the Cash Generating Unit (“CGU”) level and judgment is involved in assessing whether there is any indication that an asset or a CGU may be impaired. The assessment of the impairment indicators involves the application of a number of significant judgments and estimates to certain variables, including metal price trends, exploration plans for properties, and the results of exploration and evaluation to date. (d) Income taxes The provision for income taxes and composition of income tax assets and liabilities requires management’s judgment. The application of income tax legislation also requires judgment in order to interpret legislation and to apply those findings to the Company’s transactions. Credit on duties refundable for loss and refundable tax credits for resource investment The Company is entitled to a refundable credit on duties of 12% for eligible losses under the Quebec Mining Duties Act and a refundable resource investment tax credit of 38.75% under the Quebec Income Tax Act. These credits are applicable to qualified exploration expenditures on properties located within the province of Quebec. Application for these credits is subject to verification and, as such, they are recognized only when they are received or when a notice of assessment confirming the amount to be paid is issued. During the year ended December 31, 2022, the Company received a refund of $187 consisting of $166 principal and $21 interest, which was classified as exploration tax credits refunded on the consolidated statements of (earnings) loss and comprehensive (earnings) loss. (e) Asset held for sale The Company applies judgment to determine whether an asset or disposal group is available for immediate sale in its present condition and that its sale is highly probable and therefore should be classified as held for sale at the balance sheet date. Conditions that support a highly probable sale include the following: an appropriate level of management is committed to a plan to sell the asset or disposal group, an active program to locate a buyer and complete the plan has been initiated, the asset or disposal group has been actively marketed for sale at a price that is reasonable in relation to its current fair value, and the sale of the asset or disposal group is expected to qualify for recognition as a completed sale within one year from the date of classification as held for sale. Non-current assets and disposal groups are classified as held for sale from the date these criteria are met and are measured at the lower of the carrying amount and fair value less costs of disposal (“FVLCD”). If the FVLCD is lower than the carrying amount, an impairment loss is recognized in the consolidated statements of (earnings) loss. (f) Determination of control of subsidiaries and joint arrangements Judgement is required to determine when the Company has control of subsidiaries or joint control of joint arrangements. This requires an assessment of the relevant activities of the investee, being those activities that significantly affect the ’investee’s returns (including operating and capital expenditure decision-making, financing of the investee, and the appointment, remuneration, and termination of key management personnel) and when the decisions in relation to those activities are under the control of the Company or require unanimous consent from the investors. (g) Investments in associates The Company conducts a portion of its business through equity interests in associates. An associate is an entity over which the Company has significant influence and is neither a subsidiary nor a joint venture. The Company has significant influence when it has the power to participate in the financial and operating policy decisions of the associate but does not have control or joint control over those policy decisions. The Company accounts for its investments in associates using the equity method. Under the equity method, the Company’s investment in an associate is initially recognized at cost and subsequently increased or decreased to recognize the Company's share of earnings and losses of the associate, after any adjustments necessary to give effect to uniform accounting policies, and for impairment losses after the initial recognition date. The Company’s share of an associate’s losses that are in excess of its investment in the associate are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. The Company's share of earnings and losses of its associate are recognized in net (earnings)/loss during the period. (h) Financial instruments Financial instruments are assessed upon initial recognition to determine whether they meet the definition of a financial asset, financial liability, or equity instrument depending on the substance of the contractual arrangement. Judgement is required in making this determination as the substance of a transaction may differ from its legal form. Once a determination is made, IFRS requires that financial instruments be measured at fair value on initial recognition. For financial instruments that do not have quoted market prices or observable inputs, judgements are made in determining what are appropriate inputs and assumptions to use in calculating the fair value. Key sources of estimation uncertainty that have significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: (i) Reclamation obligations Management assesses its reclamation obligations annually and when circumstances suggest that a material change to the obligations have occurred. Significant estimates and assumptions are made in determining the provision for site reclamation and closure because there are numerous factors that will affect the ultimate liability that becomes payable. These factors include estimates of the extent, the timing, and the cost of reclamation activities, regulatory change, cost increases, and changes in discount rates. Those uncertainties may result in actual expenditures differing from the amounts currently provided. The provision at the reporting date represents management’s best estimate of the present value of the future reclamation costs required. Changes to estimated future costs are recognized in the consolidated statements of financial position by adjusting the reclamation asset and liability. Key assumptions included in the estimate of the reclamation obligations for the Company’s properties in Quebec and Nunavut were as follows: Years ended December 31 2022 2021 Risk-free interest rate 3.28 % 1.68 % Annual inflation 2.5 % 2.5 % (j) Share-based compensation The Company determines the fair value of share options granted using the Black‐Scholes option pricing model. This option pricing model requires the development of market-based subjective inputs, including the risk-free interest rate, expected price volatility, and expected life of the option. Changes in these inputs and the underlying assumption used to develop them can materially affect the fair value estimate. (k) Deferred tax assets and liabilities Management judgment and estimates are required in assessing whether deferred tax assets and deferred tax liabilities are recognized in the consolidated statements of financial position. Judgments are made as to whether future taxable profits will be available in order to recognize deferred tax assets. Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. These depend on estimates of future production and sales volumes, commodity prices, reserves, operating costs, and other capital management transactions. These judgments and assumptions are subject to risk and uncertainty, and changes in circumstances may alter expectations which may impact the amount of deferred tax assets and deferred tax liabilities recognized on the consolidated statements of financial position and the benefit of other tax losses and temporary differences not yet recognized. |
Sale of Homestake Resources
Sale of Homestake Resources | 12 Months Ended |
Dec. 31, 2022 | |
Sale of Homestake Resources | |
Sale of Homestake Resources | Note 6: Sale of Homestake Resources On February 25, 2022, the Company completed the sale of Homestake Resources to Dolly Varden for cash proceeds of $5,000 and 76,504,590 common shares of Dolly Varden (note 1). The Company’s resulting interest in Dolly Varden represented approximately 35.3% of the issued and outstanding common shares of Dolly Varden on February 25, 2022, which has been accounted for using the equity method (note 3i). The Company recognized a gain of $48,390, net of transaction costs of $589, on the date of disposition, calculated as follows: Net assets derecognized: Total Mineral interests $ 16,460 Reclamation bond 68 $ 16,528 Net proceeds: Cash $ 5,000 Working capital adjustment 68 76,504,590 common shares of Dolly Varden 60,439 Transaction costs (589 ) $ 64,918 Net gain on disposition $ 48,390 The fair value of the common shares of Dolly Varden received on date of disposition is based on the market price of the shares at the date of disposition of $0.79. The Company has sufficient non-capital losses as at December 31, 2022 to offset the capital gain arising on disposition of Homestake Resources. As such, there is nil tax payable on the sale of Homestake Resources. |
Cash and Restricted Cash
Cash and Restricted Cash | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Restricted Cash | |
Cash and Restricted Cash | Note 7: Cash and restricted cash At December 31 2022 At December 31 2021 Cash $ 10,309 $ 3,259 Restricted cash 144 130 $ 10,453 $ 3,389 Restricted cash includes an amount of $75 (December 31, 2021 – $75) in connection with an irrevocable standby letter of credit in favor of Kitikmeot Inuit Association in connection with the Company’s Committee Bay project. Restricted cash is classified as a non-current asset and is not available for use within one year of the date of the consolidated statements of financial position. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities | |
Marketable Securities | Note 8: Marketable securities Total Balance at December 31, 2020 $ 2,675 Additions 110 Sale of marketable securities (1,000 ) Realized loss on disposition (311 ) Unrealized net loss (869 ) Balance at December 31, 2021 $ 605 Additions 110 Unrealized net loss (135 ) Balance at December 31, 2022 $ 582 During the year ended December 31, 2022 the Company exercised 500,000 common share warrants of Benz Mining Corp at an exercise price of $0.12. Additionally, the Company received 500,000 common shares in respect of the sale of certain mineral claims in Quebec with a fair value on date of settlement of $50. Purchases and sales of marketable securities are accounted for as of the trade date. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment | |
Property and Equipment | Note 9: Property and equipment Property and equipment are recorded at cost, and at December 31, 2022 and 2021 were comprised as follows: Machinery and equipment Office lease Other Total Cost At December 31, 2020 $ 2,156 $ 236 $ 23 $ 2,415 Additions 35 295 68 398 Disposal of assets - - (25 ) (25 ) Impairment of assets - - (55 ) (55 ) At December 31, 2021 $ 2,191 $ 531 $ 11 $ 2,733 Additions 81 - - 81 At December 31, 2022 $ 2,272 $ 531 $ 11 $ 2,814 Accumulated depreciation At December 31, 2020 $ (1,176 ) $ (17 ) $ - $ (1,193 ) Depreciation for the year (213 ) (133 ) (25 ) (371 ) Disposal of assets - - 9 9 Impairment of assets - - 13 13 At December 31, 2021 $ (1,389 ) $ (150 ) $ (3 ) $ (1,542 ) Depreciation for the year (204 ) (133 ) (4 ) (341 ) At December 31, 2022 $ (1,593 ) $ (283 ) $ (7 ) $ (1,883 ) Net book value At December 31, 2021 $ 802 $ 381 $ 8 $ 1,191 At December 31, 2022 $ 679 $ 248 $ 4 $ 931 |
Mineral Property Interests
Mineral Property Interests | 12 Months Ended |
Dec. 31, 2022 | |
Mineral Property Interests | |
Mineral Property Interests | Note 10: Mineral property interests The Company’s principal resource properties are located in Canada. Quebec The Company maintains interests in 12 properties within the James Bay region of Quebec. The principal projects are: Eau Claire The Company owns a 100% interest in the Eau Claire project located immediately north of the Eastmain reservoir, approximately 10 kilometres (“km”) northeast of Hydro Quebec’s EM-1 hydroelectric power facility, 80 km north of the town of Nemaska, 320 km northeast of the town of Matagami, and 800 km north of Montreal, Quebec. The property consists of map-designated claims totaling approximately 23,000 hectares. Eastmain Mine The Eastmain Mine project hosts the Eastmain Mine gold deposit. The past-producing Eastmain Mine project comprises 152 mineral claims and an industrial lease. Located on the eastern most part of the Upper Eastmain River Greenstone Belt of the James Bay District of northern Quebec, the property covers approximately 80 km 2 In 2019, Benz Mining entered into an option agreement with Eastmain to allow Benz Mining the option to earn a 75% interest in the Eastmain Mine property in return for making option payments of $2,320 between October 2019 and October 2023, and incurring exploration expenditures of $3,500 on the property. The option payments may be settled in both cash and shares. Upon completion of the first option to earn 75%, Benz Mining may acquire the remaining 25% interest upon payment of $1,000 upon closing of project financing, and $1,500 upon commencement of commercial production. This option agreement was subsequently amended in April 2020 to grant Benz Mining the option to earn up to 100% of the Ruby Hill properties located to the west of the Eastmain Mine project. The Company would retain 1-2% net smelter royalties in respect of the properties following completion of the option agreement requirements. Éléonore South Joint Venture The ESJV project consists of two separate blocks of map-designated claims, comprising a total of 282 claims covering approximately 147 km2 of the Opinaca area of James Bay, Quebec. The Éléonore West block consists of 34 mineral claims covering approximately 18 km2, while the Éléonore South block contains 248 claims extending over an area of approximately 130 km2. The project is a joint operation and project ownership is based on participation in the funding of annual exploration programs. At December 31, 2022 the project was held by the partners approximately as follows: Fury Gold 50.022% and Newmont 49.978%. The Company is the operator of the project. Nunavut Committee Bay The Company, through its wholly owned subsidiary North Country, owns a 100% interest in the Committee Bay project located in Nunavut, Canada. The Committee Bay project includes approximately 280,000 hectares situated along the Committee Bay Greenstone Belt located within the Western Churchill province of Nunavut. The Committee Bay project is subject to a 1% Net Smelter Royalty (“NSR”) on gold production, with certain portions subject to an additional 1.5% NSR. The 1.5% NSR is payable on only 7,596 hectares and can be purchased by the Company within two years of commencement of commercial production for $2,000 for each one-third (0.5%) of the 1.5% NSR. Gibson MacQuoid In 2017, the Company acquired a number of prospecting permits and mineral claims along the Gibson MacQuoid Greenstone Belt in Nunavut, Canada. In 2019, the Company staked additional claims, which overlapped the Company’s prospecting claims that expired in February 2020, to maintain a contiguous land package over the Company’s current areas of interest. The Company’s claims, which are located between the Meliadine deposit and Meadowbank mine, cover approximately 120 km of strike length of the prospective greenstone belt and total 51,622 hectares collectively. Quebec Nunavut British Columbia Total Balance at December 31, 2020 $ 125,354 $ 19,358 $ 16,060 $ 160,772 Purchase of Homestake Ridge royalty - - 400 400 Option payment received (260 ) - - (260 ) Disposition (50 ) - - (50 ) Change in estimate of provision for site reclamation and closure 50 (219 ) - (169 ) Balance at December 31, 2021 $ 125,094 $ 19,139 $ 16,460 $ 160,693 Sale of Homestake Resources (note 1) - - (16,460 ) (16,460 ) Acquisition of additional ownership interest in ESJV (note 1) 1,281 - - 1,281 Option payment received (310 ) - - (310 ) Change in estimate of provision for site reclamation and closure (note 13) (409 ) 395 - (14 ) Balance at December 31, 2022 $ 125,656 $ 19,534 $ - $ 145,190 In July 2021, the Company sold certain mineral claims on the Radisson property for $50, payable in 18 months from date of purchase in either cash or common shares, at the election of the purchaser. During the year ended December 31, 2022, the Company received settlement of the sale in common shares of a publicly traded entity. These have been classified as marketable securities (note 7). In October 2022, the Company received an option payment in cash of $310 from Benz Mining in respect of the option agreement for the Eastmain Mine and Ruby Hill properties (year ended December 31, 2021 - $260, comprising of $150 cash and 174,658 shares with a fair value upon date of receipt of $110). |
Investments in associates
Investments in associates | 12 Months Ended |
Dec. 31, 2022 | |
Investments in associates | |
Investments in associates | Note 11: Investments in associates (a) Summarized financial information of the Company’s investments in associates: The carrying amounts of the Company’s investments in associates as at December 31, 2022, were as follows: Dolly Varden UMS Total Carrying amount at December 31, 2021 $ - $ - $ - Acquisition of equity investment 60,439 151 60,590 Disposal (note 1) (12,280 ) - (12,280 ) Company’s share of net loss of associates (5,856 ) (24 ) (5,880 ) Carrying amount at December 31, 2022 $ 42,303 $ 127 $ 42,430 The fair market value of the Company’s interest in Dolly Varden at December 31, 2022 was $53,554 based on the closing share price on that date. On October 13, 2022, the Company completed the sale of 17,000,000 common shares of Dolly Varden, comprising 22.2% of the Company’s equity interest in Dolly Varden acquired as part of the disposition of Homestake Resources (note 1), for total gross proceeds of $6,800. As at September 30, 2022, the sale was considered highly probable; therefore, the partial investment in associate represented by the 17,000,000 common shares was classified as an asset held for sale. The Company remeasured the carrying amount of the shares held for sale as the lower of cost and FVLCD and recognized an impairment expense of $5,506 in respect of the disposal. A reconciliation of the impairment expense is as follows: Carrying amount, investment in Dolly Varden $ 55,265 Equity interest transferred to held for sale 22.2% Carrying amount transferred to asset held for sale 12,280 Less: FVLCD (6,774 ) Impairment expense recognized $ 5,506 For the year ended December 31, 2022, the Company’s equity share of net loss of the Company’s associates on a 100% basis were as follows: Year ended December 31, 2022 Dolly Varden UMS Total Cost recoveries $ - $ (4,412 ) $ (4,412 ) Exploration and evaluation 16,936 1,642 18,578 Marketing 1,057 312 1,369 Share-based compensation 1,786 2,433 4,219 Administrative and other (508 ) 121 (387 ) Net loss of associate, 100% 19,271 96 19,367 Average equity interest for the period 30.4% 25% Company’s share of net loss of associates $ 5,856 $ 24 $ 5,880 The Company’s equity share of net assets of associates at December 31, 2022, is as follows: Dolly Varden UMS Current assets $ 28,914 $ 879 Non-current assets 155,198 2,750 Current liabilities ( ) (1,654 ) Non-current liabilities - (1,467 ) Net assets, 100% 180,012 508 Company’s equity share of net assets of associate $ 42,303 $ 127 (b) Services rendered and balances with UMS Years ended December 31 2022 2021 Exploration and evaluation costs $ 590 $ 215 General and administration 841 384 Total transactions for the period $ 1,431 $ 599 The outstanding balance owing at December 31, 2022, was $240 (December 31, 2021 – $142) which is included in accounts payable. As part of the UMS arrangement, the Company is contractually obliged to pay certain rental expenses in respect of a ten-year office lease entered into by UMS on July 1, 2021. As at December 31, 2022, the Company expects to incur approximately $520 in respect of its share of future rental expense of UMS. The Company issues share options to certain UMS employees, including key management personnel of the Company (note 16). The Company recognized a share-based compensation expense of $483 for the year ended December 31, 2022 in respect of share options issued to UMS employees (December 31, 2021 - $453) |
Flowthrough Share Premium Liabi
Flowthrough Share Premium Liability | 12 Months Ended |
Dec. 31, 2022 | |
Flowthrough Share Premium Liability | |
Flow-through Share Premium Liability | Note 12: Flow-through share premium liability Flow-through shares are issued at a premium, calculated as the difference between the price of a flow-through share and the price of a common share at that date. Tax deductions generated by eligible expenditures are passed through to the shareholders of the flow-through shares once the eligible expenditures are incurred and renounced. In September 2020, the Company completed an equity financing by raising $23,000 through the issuance of 7,750,000 subscription receipts. Out of the subscription receipts sold, 5,000,000 were flow-through receipts for gross proceeds of $17,500 and were exchanged for Fury Gold common shares designated as flow-through shares, while 2,750,000 subscription receipts were sold as non-flow-through for gross proceeds of $5,500 and exchanged for Fury Gold common shares. The flow-through share funding and expenditures along with the corresponding impact on the flow-through share premium liability were as follows: Expenditures Flow through premium liability Balance at December 31, 2020 $ 18,079 $ 7,644 Flow-through eligible expenditures (10,789 ) (4,520 ) Balance at December 31, 2021 $ 7,290 $ 3,124 Flow-through eligible expenditures (7,290 ) (3,124 ) Balance at December 31, 2022 $ - $ - |
Provision for Site Reclamation
Provision for Site Reclamation and Closure | 12 Months Ended |
Dec. 31, 2022 | |
Provision for Site Reclamation and Closure | |
Provision for Site Reclamation and Closure | Note 13: Provision for site reclamation and closure The Company recognizes a provision for site reclamation and closure, which reflects the present value of the estimated amount of cash flows required to satisfy the asset retirement obligation in respect of the Committee Bay and Quebec properties. The components of this obligation are the removal of equipment currently being used at the site as well as costs associated with the reclamation of the camp housing and work sites on the property. The estimate of future asset retirement obligations is subject to change based on amendments to applicable laws, management’s intentions, and mining lease renewals. The key assumptions used to calculate the present value of the future estimated cash flows of the Company’s projects are as follows: · Undiscounted cash flow obligation for site reclamation of $6,065 (December 31, 2021 – $4,938); · Expected timing of future cash flows which is between the years 2026 and 2041; · Annual inflation rate of 2.5% (December 31, 2021 – 2.5%); and · Risk-free interest rate of 3.28% (December 31, 2021 – 1.68%). The present value of the liability for the site reclamation and closure provision for the Company’s projects was as follows: Quebec Nunavut Total Balance at December 31, 2020 $ 1,854 $ 2,436 $ 4,290 Accretion 30 39 69 Change in estimate 50 (219 ) (169 ) Balance at December 31, 2021 $ 1,934 $ 2,256 $ 4,190 Accretion 42 52 94 Change in estimate (409 ) 396 (13 ) Balance at December 31, 2022 $ 1,567 $ 2,704 $ 4,271 |
Exploration and Evaluation Cost
Exploration and Evaluation Costs | 12 Months Ended |
Dec. 31, 2022 | |
Exploration and Evaluation Costs | |
Exploration and Evaluation Costs | Note 14: Exploration and evaluation costs For the years ended December 31, 2022 and 2021, the Company’s exploration and evaluation costs were as follows: Quebec Nunavut British Columbia Total Assaying $ 1,638 50 $ 2 $ 1,690 Exploration drilling 1,768 - - 1,768 Camp cost, equipment and field supplies 844 193 10 1,047 Geological consulting services 50 13 - 63 Geophysical analysis 127 - - 127 Permitting, environmental and community costs 163 164 - 327 Expediting and mobilization 12 - - 12 Salaries and wages 2,330 45 1 2,376 Fuel and consumables 537 - - 537 Aircraft and travel 768 21 - 789 Share-based compensation 471 9 1 481 Total for year ended December 31, 2022 $ 8,708 $ 495 $ 14 $ 9,217 Quebec Nunavut British Columbia Total Assaying $ 2,502 $ 264 $ 21 $ 2,787 Exploration drilling 3,448 601 125 4,174 Camp cost, equipment and field supplies 1,280 377 124 1,781 Geological consulting services 481 312 3 796 Geophysical analysis 185 - - 185 Permitting, environmental and community costs 186 184 53 423 Expediting and mobilization 79 170 6 255 Salaries and wages 1,921 458 100 2,479 Fuel and consumables 462 30 - 492 Aircraft and travel 429 1,079 2 1,510 Share-based compensation 346 88 39 473 Total for year ended December 31, 2021 $ 11,319 $ 3,563 $ 473 $ 15,355 |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2022 | |
Share Capital | |
Share Capital | Note 15: Share capital (a) Authorized Unlimited common shares without par value. Unlimited preferred shares – nil issued and outstanding. (b) Share issuances During the year ended December 31, 2022: i. The Company closed the “April 2022 Offering”, a non-brokered private equity placement, for gross proceeds of $11,000 and consisted of 13,750,000 common shares priced at $0.80 per share. Proceeds from the Private Placement will be used to fund continued exploration at the Company’s Eau Claire project in Quebec and for general working capital. Share issue costs related to the April 2022 Offering totaled $136. A reconciliation of the impact of the private placement on share capital is as follows: Number of common shares Impact on share capital Common shares issued at $0.80 per share 13,750,000 $ 11,000 Cash share issue costs - (136 ) Proceeds net of share issue costs 13,750,000 $ 10,864 During the year ended December 31, 2021: ii. The Company closed the “October 2021 Offering", a non-brokered private equity placement, for gross proceeds of $5,596 which was closed in two tranches and consisted of 7,461,450 units priced at $0.75 per share. Each unit consisted of one common share of Fury Gold and one warrant entitling the holder to purchase one warrant share at a price of CAD$1.20 for a period of three years. The expiry date of the warrants can be accelerated to 30 days with notice from the Company should the common shares trade after the expiry of the four-month hold period at a price equal to or greater than CAD$1.50 for 20 consecutive trading days. Share issue costs related to the October 2021 Offering totaled $211, which included $68 in commissions and $143 in other issuance costs. A reconciliation of the impact of the private placement on share capital is as follows: Number of common shares Impact on share capital Common shares issued at $0.75 per share 7,461,450 $ 5,596 Cash share issue costs - (211 ) Proceeds net of share issue costs 7,461,450 $ 5,385 iii. 328,767 shares with a fair market value of $300 were issued to purchase a 2% royalty interest on the Homestake Ridge project (note 10). Share issuance costs incurred in respect of the purchase was $10. iv. 5,834 shares were issued as a result of share options being exercised with a weighted average exercise price of $0.86 for gross proceeds of $5. An amount of $1 attributed to these share options was transferred from the equity reserves and recorded against share capital. v. 101,042 shares were issued as a result of share warrants being exercised with a weighted average exercise price of $1.46 for gross proceeds of $147. An amount of $12 attributed to these share warrants was transferred from the equity reserves and recorded against share capital. |
Share Option and Warrant Reserv
Share Option and Warrant Reserves | 12 Months Ended |
Dec. 31, 2022 | |
Share Option and Warrant Reserves | |
Share Option and Warrant Reserves | Note 16: Share option and warrant reserves (a) Share-based compensation expense The Company uses the fair value method of accounting for all share-based payments to directors, officers, employees, and other service providers. During the years ended December 31, 2022, and 2021, the Company recognized share-based compensation expense as follows: Years ended December 31 2022 2021 Recognized in net loss (earnings) and included in: Exploration and evaluation costs $ 481 $ 473 Fees, salaries and other employee benefits 1,188 1,573 Total share-based compensation expense $ 1,669 $ 2,046 During the year ended December 31, 2022, the Company granted 3,430,000 (December 31, 2021 – 1,405,000) share options to directors, officers, employees, and certain consultants who provide certain on-going services to the Company, representative of employee services. The weighted average fair value per option of these share options was calculated as $0.46 (December 31, 2021 – $0.56) using the Black-Scholes option valuation model at the grant date. The fair value of the share-based options granted during the years ended December 31, 2022 and 2021 was estimated using the Black-Scholes option valuation model with the following weighted average assumptions: Years ended December 31 2022 2021 Risk-free interest rate 2.20% 0.91% Expected dividend yield Nil Nil Share price volatility 67% 67% Expected forfeiture rate 2.5% 0% Expected life in years 5.0 4.9 The risk-free interest rate assumption is based on the Government of Canada benchmark bond yields and treasury bills with a remaining term that approximates the expected life of the share-based options. The expected volatility assumption is based on the historical and implied volatility of the Company’s common shares. The expected forfeiture rate and the expected life in years are based on historical trends. (b) Share option plan The Company maintains a rolling share option plan providing for the issuance of share options up to 10% of the Company’s issued and outstanding common shares at the time of the grant. The Company may grant share options from time to time to its directors, officers, employees, and other service providers. The share options typically vest as to 25% on the date of the grant and 12.5% every three months thereafter for a total vesting period of 18 months. The number of share options Issued and outstanding and the weighted average exercise price were as follows: Number of share options Weighted average exercise price ($/option) Outstanding, December 31, 2020 8,141,004 $ 2.67 Granted 1,405,000 1.03 Exercised (5,834 ) 0.86 Expired (1,685,048 ) 3.62 Forfeited (1,103,125 ) 2.04 Outstanding, December 31, 2021 6,751,997 $ 2.00 Granted 3,430,000 1.00 Expired (608,237 ) 4.65 Forfeited (693,436 ) 1.77 Outstanding, December 31, 2022 8,880,324 $ 1.44 As at December 31, 2022, the number of share options outstanding was as follows: Options outstanding Options exercisable Exercise price ($/option) Number of shares Weighted average exercise price ($/option) Weighted average remaining life (years) Number of shares Weighted average exercise price ($/option) Weighted average remaining life (years) $0.56 – $1.00 4,848,330 0.97 3.90 3,031,143 0.95 3.78 $1.00 – $1.95 1,277,639 1.72 1.80 1,262,015 1.72 1.77 $2.05 – $3.26 2,754,355 2.16 2.65 2,754,355 2.16 2.65 8,880,324 1.44 3.21 7,047,513 1.56 2.98 (c) Share purchase warrants The number of share purchase warrants outstanding at December 31, 2022 was as follows: Warrants outstanding Exercise price ($/share) Outstanding at December 31, 2020 1,626,740 $ 1.66 Issued (note 15b) 7,461,450 1.20 Exercised (101,042 ) 1.46 Expired (775,695 ) 1.42 Outstanding at December 31, 2021 8,211,453 $ 1.27 Expired (750,003 ) 1.95 Outstanding at December 31, 2022 7,461,450 $ 1.20 The following table reflects the warrants issued and outstanding as of December 31, 2022: Expiry date Warrants outstanding Exercise price ($/share) October 6, 2024 5,085,670 1.20 October 12, 2024 2,375,780 1.20 Total 7,461,450 1.20 |
Key management personnel
Key management personnel | 12 Months Ended |
Dec. 31, 2022 | |
Share Option and Warrant Reserves | |
Key management personnel | Note 17: Key management personnel Key management personnel include Fury Gold’s board of directors and certain executive officers of the Company, including the CEO and Chief Financial Officer (“CFO”). On April 1, 2022, the Company entered into a shared services agreement with UMS, in which the Company holds a 25% interest (note 1). Under the shared services agreement, the Company’s CFO, Senior Vice President, Exploration, and CGO terminated their direct employment status with the Company, became employed by UMS and then entered into secondment employment arrangements between the Company and UMS. The remuneration of the Company’s key management personnel was as follows: Years ended December 31 2022 2021 Short-term benefits provided to executives (a) $ 1,719 $ 982 Directors’ fees paid to non-executive directors 203 204 Share-based payments 1,059 1,206 Total $ 2,981 $ 2,392 (a) |
Supplemental cash flow informat
Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental cash flow information | |
Supplemental cash flow information | Note 18: Supplemental cash flow information The impact of changes in non-cash working capital was as follows: Years ended December 31 2022 2021 Accounts receivable $ (47 ) $ 505 Prepaid expenses and deposits (94 ) 260 Accounts payable and accrued liabilities (762 ) (499 ) Changes in non-cash working capital $ (903 ) $ 266 Operating activities include the following cash received: Years ended December 31 2022 2021 Income taxes refunded (note 5d) $ 187 $ 3,835 |
(Earnings) loss per share
(Earnings) loss per share | 12 Months Ended |
Dec. 31, 2022 | |
(Earnings) loss per share | |
(Earnings) loss per share | Note 19: (Earnings) loss per share For the years ended December 31, 2022 and 2021, the weighted average number of shares outstanding and (earnings) loss per share were as follows: Years ended December 31 2022 2021 Net loss (earnings) $ (24,908 ) $ 16,790 Weighted average basic number of shares outstanding 139,470,950 119,701,040 Basic loss (earnings) per share $ (0.18 ) $ 0.14 Weighted average diluted number of shares outstanding 139,481,236 119,701,040 Diluted loss (earnings) per share $ (0.18 ) $ 0.14 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments | |
Financial Instruments | Note 20: Financial instruments The Company’s financial instruments as at December 31, 2022, consisted of cash, marketable securities, accounts receivable, deposits, and accounts payable and accrued liabilities. The fair values of these financial instruments approximate their carrying values, unless otherwise noted. (a) Financial assets and liabilities by categories At December 31, 2022 At December 31, 2021 Amortized Cost FVTPL Total Amortized Cost FVTPL Total Cash $ 10,309 $ - $ 10,309 $ 3,259 $ - $ 3,259 Marketable securities - 582 582 - 605 605 Deposits 25 - 25 243 - 243 Accounts receivable 369 - 369 372 - 372 Total financial assets $ 10,703 $ 582 $ 11,285 $ 3,874 605 $ 4,479 Accounts payable and accrued liabilities 1,148 - 1,148 1,888 - 1,888 Total financial liabilities $ 1,148 $ - $ 1,148 $ 1,888 $ - $ 1,888 (b) Financial assets and liabilities measured at fair value The categories of the fair value hierarchy that reflect the significance of inputs used in making fair value measurements are as follows: Level 1 – fair values based on unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 – fair values based on inputs that are observable for the asset or liability, either directly or indirectly; and Level 3 – fair values based on inputs for the asset or liability that are not based on observable market data. The Company’s policy to determine when a transfer occurs between levels is to assess the impact at the date of the event or the change in circumstances that could result in a transfer. No transfers occurred between the levels during the year. The Company’s financial instruments measured at fair value on a recurring basis were as follows: At December 31 2022 2021 Level 1 Level 2 Level 1 Level 2 (a) Marketable securities 582 - 282 323 (a) Marketable securities included in level 2 include warrants that were valued using an option pricing model which utilizes a combination of quoted prices and market-derived inputs, including volatility estimates. During the year ended December 31, 2022, there were no financial assets or financial liabilities measured and recognized on the consolidated statements of financial position at fair value that would be categorized as level 3 in the fair value hierarchy. (c) Financial instruments and related risks The Company’s financial instruments are exposed to liquidity risk, credit risk and market risks, which include currency risk, interest rate risk and price risk. As at December 31, 2022, the primary risks were as follows: Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company proactively manages its capital resources and has in place a budgeting and cash management process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its current exploration plans and achieve its growth objectives. The Company ensures that there is sufficient liquidity available to meet its short-term business requirements, taking into account its anticipated cash outflows from exploration activities, and its holdings of cash and marketable securities. The Company monitors and adjusts, when required, these exploration programs as well as corporate administrative costs to ensure that adequate levels of working capital are maintained. As at December 31, 2022, the Company had unrestricted cash of $10,309 (December 31, 2021 – $3,259), working capital surplus of $10,554 (December 31, 2021 – working capital deficit of $428), which the Company defines as current assets less current liabilities, and an accumulated deficit of $131,841 (December 31, 2021 – $156,749). During the year ended December 31, 2022, Fury Gold earned income of $24,905 (December 31, 2021 – loss of $16,790), arising from the gain upon disposition of Homestake Resources to Dolly Varden. With no source of operating cash flow, there is no assurance that sufficient funding will be available to conduct further exploration of its mineral properties. The Company’s contractual obligations are as follows: Within 1 year 2 to 3 years Over 3 years At December 31 2022 Accounts payable and accrued liabilities $ 1,148 $ - $ - $ 1,148 Undiscounted lease payments 215 253 - 468 Total $ 1,363 $ 253 $ - $ 1,616 The Company also makes certain payments arising on mineral claims and leases on an annual or bi-annual basis to ensure all the Company’s properties remain in good standing. Cash payments of $215 were made during the year ended December 31, 2022, in respect of these mineral claims (December 31, 2021 - $441), with $78 recognized in prepaid expenses as at December 31, 2022 (December 31, 2020 – $144). Credit risk The Company’s cash and accounts receivables are exposed to credit risk, which is the risk that the counterparties to the Company’s financial instruments will cause a loss to the Company by failing to pay their obligations. The amount of credit risk to which the Company is exposed is considered insignificant as the Company’s cash is held with highly rated financial institutions in interest-bearing accounts and the accounts receivable primarily consist of sales tax receivables and a receivable from a reputable supplier of services in Canada. Market risk This is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Significant market risks to which the Company is exposed are as follows: i. Currency risk The Company is exposed to currency risk by having balances and transactions in currencies that are different from the relevant functional currency (the Canadian dollar). The Company’s foreign currency exposure related to its financial assets and liabilities held in US dollars was as follows: Years ended December 31 2022 2021 Financial assets US$ bank accounts $ 1 $ 569 Financial liabilities Accounts payable (61 ) (160 ) $ (60 ) $ 409 A 10% increase or decrease in the US dollar to Canadian dollar exchange rate would not have a material impact on the Company’s net loss. ii. Price risk The Company holds certain investments in marketable securities (note 7) which are measured at fair value, being the closing share price of each equity security at the date of the consolidated statements of financial position. The Company is exposed to changes in share prices which would result in gains and losses being recognized in the loss for the year. A 10% increase or decrease in the Company’s marketable securities’ share prices would not have a material impact on the Company’s net loss. |
Management of Capital
Management of Capital | 12 Months Ended |
Dec. 31, 2022 | |
Management of Capital | |
Management of capital | Note 21: Management of capital The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue exploration of resource properties and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may issue new shares or debt, acquire or dispose of assets, or adjust the amount of cash and investments. In order to maximize ongoing exploration efforts, the Company does not pay out dividends, does not have any long-term debt, and is not subject to any externally imposed capital requirements. The capital of the Company was determined as follows: Years ended December 31 2022 2021 Equity $ 194,793 $ 157,355 Less: cash (10,309 ) (3,259 ) $ 184,484 $ 154,096 The Company expects its capital resources to support its current forecasted project expenditures at the Eau Claire project and other corporate activities. While the Company has been successful at raising capital in the past, there can be no assurance that the Company will have sufficient financing to meet its future capital requirements or that additional financing will be available on terms acceptable to the Company in the future. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Tax | Note 22: Income taxes Income tax recovery provision The reconciliation of the income tax recovery computed at statutory rates to the reported income tax recovery is: Years ended December 31 2022 2021 (Earnings) Loss before income taxes $ (24,908 ) $ 16,790 Canadian federal and provincial income tax rates 27% 27% Expected income tax expense (recovery) 6,725 (4,533 ) Increase (decrease) in income tax recovery resulting from: Share-based compensation 448 552 Share issuance costs (37 ) (60 ) Adjustment to tax estimates 114 1,170 Amortization of flow-through share premium (844 ) (1,220 ) Flow-through expenditures renunciation 1,934 2,856 Difference in future and foreign tax rates 81 (172 ) Sale of Homestake Resource Corporation (3,021 ) - Other 634 (149 ) Increase in unrecognized tax asset (6,034 ) 1,556 Income tax expense (recovery) $ - $ - Significant components of deferred tax asset and liabilities are: December 31 2021 Net loss December 31 2022 Deferred income tax assets Non-capital losses carried forward $ 21,032 $ (7,397 ) $ 13,635 Capital losses carried forward 183 (110 ) 73 Share issuance costs and CEC 552 (235 ) 317 Investments 18 4 22 Investments in associates - 633 633 Site reclamation obligations 1,121 24 1,145 Property and equipment 376 51 427 Mineral property interests 5,001 (28 ) 4,973 Capital lease obligation 124 (20 ) 104 Other 63 (63 ) - 28,470 (7,141 ) 21,329 Deferred income tax liabilities Property and equipment (86 ) 33 (53 ) Mineral property interests (1,606 ) (1,061 ) (545 ) Investments (42 ) 14 (28 ) Net deferred tax assets 26,736 (6,034 ) 20,702 Unrecognized deferred tax assets (26,736 ) 6,034 (20,702 ) Net deferred tax balance $ - $ - $ - December 31 2020 Net loss December 31 2021 Deferred income tax assets Non-capital losses carried forward $ 19,846 $ 1,186 $ 21,032 Capital losses carried forward 82 101 183 Share issuance costs and CEC 833 (281 ) 552 Investments 44 (26 ) 18 Site reclamation obligations 1,137 (16 ) 1,121 Property and equipment 312 64 376 Mineral property interests 3,985 1,016 5,001 Capital lease obligation 66 58 124 Other - 63 63 26,305 2,165 28,470 Deferred income tax liabilities Property and equipment (52 ) (34 ) (86 ) Mineral property interests (877 ) (729 ) (1,606 ) Investments (196 ) 154 (42 ) Net deferred tax assets 25,180 1,556 26,736 Unrecognized deferred tax assets (25,180 ) (1,556 ) (26,736 ) Net deferred tax balance $ - $ - $ - The Company has accumulated non-capital losses of approximately $51,335 (December 31, 2021 – $79,718) in Canada, which may be carried forward to reduce taxable income of future years. The non-capital losses will, if unused, expire between 2025 and 2042. The Company has not recognized any deferred tax assets at December 31, 2022, in respect of these non-capital losses due to the uncertainty that future operations will generate sufficient taxable income to utilize these non-capital losses. The Company has $247 accumulated capital losses (December 31, 2021 – $1,312) in Canada which may be carried forward indefinitely and used to reduce capital gains in future years. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent events | |
Subsequent events | Note 23: Subsequent events (a) On December 12, 2022, the Company entered into an Option Agreement (“the Agreement”), pursuant to which Ophir Gold Corp. (the “Optionee”) would acquire a 100% interest in the Radis Property through payment of certain cash and common shares over a three year period, payments of which may be accelerated by the Optionee. The Company shall retain a 2% NSR on the property, three-quarters of which may be purchased by the Optionee for $1,500. The Agreement was subject to certain closing conditions, which were met on January 19, 2023. (b) On January 17, 2023, the company issued 2,712,800 share options to directors, officers, and employees. The share options were issued in accordance with the Company’s share option plan (note 16b), with an exercise price of $0.82, and will vest over 18 months with an expiry term of five years. Of those issued, 983,800 share options were issued to UMS employees, including those employed as Key Management Personnel of the Company (note 17). (c) On March 23, 2023, the Company announced the closing of the previously announced bought deal private placement financing. At the close of the financing, the Company issued 6,076,500 common shares of the Company that qualify as ‘flow-through shares’ as defined under subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Québec) “FT Shares”) at a price of C$1.44 per FT Share to be sold on a charitable flow-through basis, representing total gross proceeds to the Company of C$8,750. The proceeds of the financing will be used to advance the Company’s 2023 exploration programs in Quebec. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Significant accounting policies | |
Basis of measurement | These consolidated financial statements have been prepared on a historical cost basis, except for those assets and liabilities that are measured at revalued amounts or fair values at the end of each reporting period. |
Currency of presentation | The Company’s presentation currency is the Canadian (“CAD”) dollar. All amounts, with the exception of per share amounts, are expressed in thousands of Canadian dollars, unless otherwise stated. References to US$ are to United States (“US”) dollars. |
Basis of preparation and consolidation | These consolidated financial statements include the accounts of the Company and its subsidiaries. Subsidiaries are entities controlled by the Company. Control exists when the Company has power over an investee, when the Company is exposed, or has rights, to variable returns from the investee and when the Company has the ability to affect those returns through its power over the investee. Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition up to the effective date of disposition or loss of control. All intercompany balances and transactions have been eliminated. The subsidiaries (with a beneficial interest of 100%) of the Company at December 31, 2022 were as follows: Subsidiary Place of incorporation Functional currency North Country Gold Corp. (“North Country”) BC, Canada CAD Eastmain Resources Inc. (“Eastmain”) ON, Canada CAD Eastmain Mines Inc. (“Eastmain Mines”) (a) Canada CAD Fury Gold USA Limited (“Fury Gold USA”) (b) Delaware, U.S.A. USD (a) (b) Investments in associates and joint arrangements These interim financial statements also include the following joint arrangements and investments in associates: Associates and joint arrangement Ownership interest Location Classification and accounting method Dolly Varden (a) 23.5% BC, Canada Associate; equity method UMS 25.0% BC, Canada Associate; equity method ESJV (b) 50.022% Quebec, Canada Joint operation (a) (b) |
Foreign currency translation | The financial statements of the Company and each of its subsidiaries are prepared in its functional currency determined on the basis of the currency of the primary economic environment in which such entities operate. The presentation and functional currency of the Company and each of its subsidiaries, with the exception of Fury Gold USA, is the Canadian dollar. Fury Gold USA’s functional currency has been determined to be the US dollar. Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing at the transaction dates. At each reporting date, monetary items denominated in foreign currencies are translated into the entity’s functional currency at the then prevailing rates and non-monetary items measured at historical cost are translated into the entity’s functional currency at rates in effect at the date the transaction took place. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are included in the consolidated statements of loss and comprehensive loss for the period in which they arise. |
Cash and cash equivalents | Cash and cash equivalents consist of cash and highly liquid short-term investments that are readily convertible to cash and have maturities with terms of less than ninety days and/or with original maturities over ninety days but redeemable on demand without penalty. As at December 31, 2022 and 2021, the Company did not have any cash equivalents. |
Property and equipment | Property and equipment are stated at cost less accumulated amortization and impairment losses. Amortization is calculated using the straight-line method over the estimated useful lives as follows: · Computer equipment 3 years · Machinery and equipment 5-10 years · Right-of-use (“ROU”) assets the lease term, unless the transfer of the asset ownership is reasonably certain at the end of the lease term, whereupon depreciation is over the useful life. |
Mineral property interests and exploration expenditures | Title to mineral properties involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing historical characteristic of many properties. The Company has investigated title to all of its mineral properties and, to the best of its knowledge, title to all of its properties is in good standing. The Company accounts for mineral property interests in accordance with IFRS 6 – Exploration for and evaluation of mineral properties Costs directly related to acquiring the legal right to explore a mineral property including acquisition of licenses, mineral rights, and similar acquisition costs are recognized and capitalized as mineral property interests. Acquisition costs incurred in obtaining the legal right to explore a mineral property are deferred until the legal right is granted and thereon reclassified to mineral property interests. Transaction costs incurred in acquiring an asset are deferred until the transaction is completed and then included in the purchase price of the asset acquired. Once the legal right to explore a property has been acquired, costs directly related to exploration and evaluation activities including, but not limited to, researching and analyzing existing exploration data, conducting geological studies, exploration drilling and sampling, and payments made to contractors and consultants in connection with the exploration and evaluation of the property, are expensed in the period in which they are incurred as exploration and evaluation costs on the consolidated statements of loss and comprehensive loss. Costs not directly attributable to exploration and evaluation activities, including general administrative overhead costs, are expensed as administrative costs in the period in which they occur. As the Company currently has no operational income, any incidental revenues earned in connection with exploration activities are applied as a reduction to exploration and evaluation costs. When a project is deemed to no longer have commercially viable prospects to the Company, all capitalized acquisition costs in respect of that project are deemed to be impaired. As a result, those costs, in excess of the estimated recoverable amount, are expensed to the consolidated statements of loss and comprehensive loss. The Company assesses mineral property interests for impairment when facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and its value in use. Once the technical feasibility and commercial viability of extracting the mineral resources has been determined, the property is considered to be a mine under development at which point the assets and further related costs no longer fall under the guidance of IFRS 6. |
Joint arrangement | The Company conducts a portion of its business through a joint arrangement where the parties are bound by contractual arrangements establishing joint control with decisions about the relevant activities that significantly affect the returns of the investee requiring unanimous consent. A joint arrangement is classified as either a joint operation or a joint venture, subject to the terms that govern each investor's rights and obligations in the arrangement. In a joint operation, the investor has rights and obligations to the separate assets and liabilities of the investee, therefore the Company recognizes its share of the assets, liabilities, revenue, and expenses of the joint arrangement. |
Investments in associates | The Company conducts a portion of its business through equity interests in associates. An associate is an entity over which the Company has significant influence and is neither a subsidiary nor a joint venture. The Company has significant influence when it has the power to participate in the financial and operating policy decisions of the associate but does not have control or joint control over those policy decisions. The Company accounts for its investments in associates using the equity method. Under the equity method, the Company’s investment in an associate is initially recognized at cost and subsequently increased or decreased to recognize the Company's share of earnings and losses of the associate, after any adjustments necessary to give effect to uniform accounting policies, and for impairment losses after the initial recognition date. The Company’s share of an associate’s losses that are in excess of its investment in the associate are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. The Company's share of earnings and losses of its associate are recognized in net (earnings)/loss during the period. |
Impairment of non-financial assets | At each reporting date, the Company reviews the carrying amounts of its non-financial assets to determine whether there are any indicators of impairment. If any such indicator exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. Where the asset does not generate cash inflows that are independent from other assets, the Company estimates the recoverable amount of the CGU to which the asset belongs. Any intangible asset with an indefinite useful life is tested for impairment annually and whenever there is an indication that the asset may be impaired. An asset’s recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted. If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount is reduced to the recoverable amount and an impairment loss is recognized immediately in the consolidated statements of loss and comprehensive loss. Where an impairment subsequently reverses, the carrying amount is increased to the revised estimate of recoverable amount but only to the extent that this does not exceed the carrying value that would have been determined if no impairment had previously been recognized. A reversal of impairment is recognized in the consolidated statements of loss and comprehensive loss. |
Leases | The Company assesses if a contract is or contains a lease at inception of the contract. Control is considered to exist if the contract conveys the right to control the use of an identified asset during the term of the lease. When a lease is identified, a right-of-use asset and a corresponding lease liability are recognized, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognizes the lease payments as an expense in profit or loss on a straight-line basis. Right-of-use assets, which are included in property and equipment, are recognized at cost, which is comprised of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs and decommissioning and restoration costs, less any lease incentives received. Right-of-use assets are depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis, except where ownership is expected to be transferred at the end of the lease, whereby the asset is depreciated over its useful life. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date discounted by using the rate implicit in the lease or the Company’s incremental borrowing rate, if the rate implicit in the lease cannot be determined. Lease payments included in the measurement of the lease liability are: · fixed payments (including in-substance fixed payments), less any lease incentives receivable; · variable payments that depend on an index or rate; · amount expected to be payable by the lessee under residual value guarantees; · exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and · penalties for terminations, unless the Company is reasonably certain the options will not be exercised. |
Provisions | Provisions are recorded when a present legal or constructive obligation exists as a result of past events where it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. |
Provision for site reclamation and closure | An obligation to incur rehabilitation and site restoration costs arises when an environmental disturbance is caused by the exploration, development, or on-going production of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their net present value, are provided for and capitalized at the start of each project as soon as the obligation to incur such costs arises, as well when changes in estimates occur year over year. These costs are charged to the consolidated statements of loss and comprehensive loss over the life of the operation through amortization and the unwinding of the discount in the provision. |
Flow-through common shares | Canadian income tax legislation permits companies to issue flow-through instruments whereby the income tax deductions generated by eligible expenditures of the Company, defined in the Income Tax Act |
(Earnings) Loss per share | Basic (earnings) loss per share is calculated by dividing the net (earnings) loss available to common shareholders by the weighted average number of shares outstanding during the reporting period. The diluted loss per share is calculated by dividing the net loss available to common shareholders by the weighted average number of shares outstanding on a diluted basis. The weighted average number of shares outstanding on a diluted basis takes into account the additional shares for the assumed exercise of share options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding share options were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. |
Share-based compensation | From time to time, the Company grants share options to employees and non-employees. An individual is classified as an employee, versus a non-employee, when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. The fair value of share options, measured using the Black-Scholes option pricing model at the date of grant, is charged to the consolidated statements of loss and comprehensive loss over the vesting period. Performance vesting conditions and forfeitures are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognized over the vesting period is based on the number of options that eventually vest. Where the terms and conditions of options are modified before they vest, any change in the fair value of the options, measured immediately before and after the modification, is also charged to the consolidated statements of loss and comprehensive loss over the remaining vesting period. Equity instruments granted to non-employees are recorded in the consolidated statements of loss and comprehensive loss at the fair value of the goods or services received, unless they are related to the issuance of shares. Costs related to the issuance of shares are recorded as a reduction of share capital. When the value of goods or services received in exchange for a share-based payment cannot be reliably estimated, the fair value is measured by use of a valuation model. The expected life used in the model is adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioral considerations. All equity-settled share-based payments are recorded in the share option and warrant reserve until exercised. Upon exercise, shares are issued from treasury and the amount previously recorded in share option and warrant reserve is reclassified to share capital along with any consideration paid. |
Income taxes | Income tax reported in the consolidated statements of loss and comprehensive loss for the period presented comprises current and deferred income tax. Income tax is recognized in the consolidated statements of loss and comprehensive loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current income tax for each taxable entity in the Company is based on the local taxable income at the local statutory tax rate enacted or, substantively enacted, at the reporting date and includes any adjustments to tax payable or recoverable with regards to previous periods. Deferred income tax is determined using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred income tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using the expected future tax rates enacted or substantively enacted at the reporting date. A deferred income tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred income tax assets and liabilities are offset only when there is a legally enforceable right to set off current tax assets against current tax liabilities, when they relate to income taxes levied by the same taxation authority and the Company intends to settle its tax assets and liabilities on a net basis. |
Financial instruments | The Company recognizes financial assets and liabilities on its consolidated statements of financial position when it becomes a party to the contract creating the asset or liability. On initial recognition, all financial assets and liabilities are recorded by the Company at fair value, net of attributable transaction costs, except for financial assets and liabilities classified as fair value through profit or loss for which transaction costs are expensed in the period in which they are incurred. i) Amortized cost Financial assets that meet the following conditions are measured subsequently at amortized cost: · the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and · the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. Interest income is recognized using the effective interest method. The Company's financial assets at amortized cost primarily include cash, restricted cash, accounts receivable, and deposits. ii) Fair value through other comprehensive income (”FVTOCI") Financial assets that meet the following conditions are measured at FVTOCI: · the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and · the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Company does not have any financial assets classified as FVTOCI at December 31, 2022. iii) Financial assets measured subsequently at fair value through profit or loss (“FVTPL”) By default, all other financial assets are measured subsequently at FVTPL. The Company, at initial recognition, may also irrevocably designate a financial asset as measured at FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. Financial assets measured at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or loss to the extent they are not part of a designated hedging relationship. Fair value is determined in the manner described in note 20. iv) Financial liabilities and equity Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements, and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue, or cancellation of the Company’s own equity instruments. Financial liabilities that are not contingent consideration of an acquirer in a business combination, held for trading, or designated as at FVTPL, are measured at amortized cost using the effective interest method. The Company's financial liabilities measured at amortized cost primarily include accounts payable and accrued liabilities. v) Impairment The Company recognizes a loss allowance for expected credit losses on its financial assets. The amount of expected credit losses is updated at each reporting period to reflect changes in credit risk since initial recognition of the respective financial instruments. |
Other Comprehensive loss | Other comprehensive (income) loss is the change in net assets arising from transactions and other events and circumstances from non-owner sources. Comprehensive (income) loss comprises net (earnings) loss and other comprehensive loss. Foreign currency translation differences arising on translation of subsidiaries with a different functional currency are also included in other comprehensive loss. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant accounting policies | |
Disclosure of subsidaries | Subsidiary Place of incorporation Functional currency North Country Gold Corp. (“North Country”) BC, Canada CAD Eastmain Resources Inc. (“Eastmain”) ON, Canada CAD Eastmain Mines Inc. (“Eastmain Mines”) (a) Canada CAD Fury Gold USA Limited (“Fury Gold USA”) (b) Delaware, U.S.A. USD |
Disclosure of joint arrangements and investments in associates | Associates and joint arrangement Ownership interest Location Classification and accounting method Dolly Varden (a) 23.5% BC, Canada Associate; equity method UMS 25.0% BC, Canada Associate; equity method ESJV (b) 50.022% Quebec, Canada Joint operation |
Disclosure of estimated useful lives of property, plant and equipment | · Computer equipment 3 years · Machinery and equipment 5-10 years · Right-of-use (“ROU”) assets the lease term, unless the transfer of the asset ownership is reasonably certain at the end of the lease term, whereupon depreciation is over the useful life. |
Critical accounting estimates_2
Critical accounting estimates and judgments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Estimate of the reclamation obligations | Years ended December 31 2022 2021 Risk-free interest rate 3.28 % 1.68 % Annual inflation 2.5 % 2.5 % |
Sale of Homestake Resources (Ta
Sale of Homestake Resources (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Sale of Homestake Resources | |
Sale of Homestake Resources | Net assets derecognized: Total Mineral interests $ 16,460 Reclamation bond 68 $ 16,528 Net proceeds: Cash $ 5,000 Working capital adjustment 68 76,504,590 common shares of Dolly Varden 60,439 Transaction costs (589 ) $ 64,918 Net gain on disposition $ 48,390 |
Cash and Restricted Cash (Table
Cash and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Restricted Cash | |
Cash and restricted cash | At December 31 2022 At December 31 2021 Cash $ 10,309 $ 3,259 Restricted cash 144 130 $ 10,453 $ 3,389 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities | |
Marketable Securities | Total Balance at December 31, 2020 $ 2,675 Additions 110 Sale of marketable securities (1,000 ) Realized loss on disposition (311 ) Unrealized net loss (869 ) Balance at December 31, 2021 $ 605 Additions 110 Unrealized net loss (135 ) Balance at December 31, 2022 $ 582 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment | |
Property and Equipment | Machinery and equipment Office lease Other Total Cost At December 31, 2020 $ 2,156 $ 236 $ 23 $ 2,415 Additions 35 295 68 398 Disposal of assets - - (25 ) (25 ) Impairment of assets - - (55 ) (55 ) At December 31, 2021 $ 2,191 $ 531 $ 11 $ 2,733 Additions 81 - - 81 At December 31, 2022 $ 2,272 $ 531 $ 11 $ 2,814 Accumulated depreciation At December 31, 2020 $ (1,176 ) $ (17 ) $ - $ (1,193 ) Depreciation for the year (213 ) (133 ) (25 ) (371 ) Disposal of assets - - 9 9 Impairment of assets - - 13 13 At December 31, 2021 $ (1,389 ) $ (150 ) $ (3 ) $ (1,542 ) Depreciation for the year (204 ) (133 ) (4 ) (341 ) At December 31, 2022 $ (1,593 ) $ (283 ) $ (7 ) $ (1,883 ) Net book value At December 31, 2021 $ 802 $ 381 $ 8 $ 1,191 At December 31, 2022 $ 679 $ 248 $ 4 $ 931 |
Mineral Property Interests (Tab
Mineral Property Interests (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Mineral Property Interests | |
Disclosure of work expenditures and cash payments for acquisition of mineral property rights | Quebec Nunavut British Columbia Total Balance at December 31, 2020 $ 125,354 $ 19,358 $ 16,060 $ 160,772 Purchase of Homestake Ridge royalty - - 400 400 Option payment received (260 ) - - (260 ) Disposition (50 ) - - (50 ) Change in estimate of provision for site reclamation and closure 50 (219 ) - (169 ) Balance at December 31, 2021 $ 125,094 $ 19,139 $ 16,460 $ 160,693 Sale of Homestake Resources (note 1) - - (16,460 ) (16,460 ) Acquisition of additional ownership interest in ESJV (note 1) 1,281 - - 1,281 Option payment received (310 ) - - (310 ) Change in estimate of provision for site reclamation and closure (note 13) (409 ) 395 - (14 ) Balance at December 31, 2022 $ 125,656 $ 19,534 $ - $ 145,190 |
Investments in associates (Tabl
Investments in associates (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments in associates | |
Company's investments in associates | Dolly Varden UMS Total Carrying amount at December 31, 2021 $ - $ - $ - Acquisition of equity investment 60,439 151 60,590 Disposal (note 1) (12,280 ) - (12,280 ) Company’s share of net loss of associates (5,856 ) (24 ) (5,880 ) Carrying amount at December 31, 2022 $ 42,303 $ 127 $ 42,430 |
Reconcillation of impairment expense | Carrying amount, investment in Dolly Varden $ 55,265 Equity interest transferred to held for sale 22.2% Carrying amount transferred to asset held for sale 12,280 Less: FVLCD (6,774 ) Impairment expense recognized $ 5,506 |
Company's share of net loss of associates | Year ended December 31, 2022 Dolly Varden UMS Total Cost recoveries $ - $ (4,412 ) $ (4,412 ) Exploration and evaluation 16,936 1,642 18,578 Marketing 1,057 312 1,369 Share-based compensation 1,786 2,433 4,219 Administrative and other (508 ) 121 (387 ) Net loss of associate, 100% 19,271 96 19,367 Average equity interest for the period 30.4% 25% Company’s share of net loss of associates $ 5,856 $ 24 $ 5,880 |
Company's equity share of net assets of associate | Dolly Varden UMS Current assets $ 28,914 $ 879 Non-current assets 155,198 2,750 Current liabilities ( ) (1,654 ) Non-current liabilities - (1,467 ) Net assets, 100% 180,012 508 Company’s equity share of net assets of associate $ 42,303 $ 127 |
Total transactions for the period | Years ended December 31 2022 2021 Exploration and evaluation costs $ 590 $ 215 General and administration 841 384 Total transactions for the period $ 1,431 $ 599 |
Flowthrough Share Premium Lia_2
Flowthrough Share Premium Liability (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Flowthrough Share Premium Liability | |
Summary of the flow-through financings and the related flow-through share premium liability | Expenditures Flow through premium liability Balance at December 31, 2020 $ 18,079 $ 7,644 Flow-through eligible expenditures (10,789 ) (4,520 ) Balance at December 31, 2021 $ 7,290 $ 3,124 Flow-through eligible expenditures (7,290 ) (3,124 ) Balance at December 31, 2022 $ - $ - |
Provision for Site Reclamatio_2
Provision for Site Reclamation and Closure (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provision for Site Reclamation and Closure | |
Disclosure of other provisions | Quebec Nunavut Total Balance at December 31, 2020 $ 1,854 $ 2,436 $ 4,290 Accretion 30 39 69 Change in estimate 50 (219 ) (169 ) Balance at December 31, 2021 $ 1,934 $ 2,256 $ 4,190 Accretion 42 52 94 Change in estimate (409 ) 396 (13 ) Balance at December 31, 2022 $ 1,567 $ 2,704 $ 4,271 |
Exploration and Evaluation Co_2
Exploration and Evaluation Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Exploration and Evaluation Costs | |
Company's exploration and evaluation costs | Quebec Nunavut British Columbia Total Assaying $ 1,638 50 $ 2 $ 1,690 Exploration drilling 1,768 - - 1,768 Camp cost, equipment and field supplies 844 193 10 1,047 Geological consulting services 50 13 - 63 Geophysical analysis 127 - - 127 Permitting, environmental and community costs 163 164 - 327 Expediting and mobilization 12 - - 12 Salaries and wages 2,330 45 1 2,376 Fuel and consumables 537 - - 537 Aircraft and travel 768 21 - 789 Share-based compensation 471 9 1 481 Total for year ended December 31, 2022 $ 8,708 $ 495 $ 14 $ 9,217 Quebec Nunavut British Columbia Total Assaying $ 2,502 $ 264 $ 21 $ 2,787 Exploration drilling 3,448 601 125 4,174 Camp cost, equipment and field supplies 1,280 377 124 1,781 Geological consulting services 481 312 3 796 Geophysical analysis 185 - - 185 Permitting, environmental and community costs 186 184 53 423 Expediting and mobilization 79 170 6 255 Salaries and wages 1,921 458 100 2,479 Fuel and consumables 462 30 - 492 Aircraft and travel 429 1,079 2 1,510 Share-based compensation 346 88 39 473 Total for year ended December 31, 2021 $ 11,319 $ 3,563 $ 473 $ 15,355 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share Capital | |
Disclosure of classes of share capital | Number of common shares Impact on share capital Common shares issued at $0.80 per share 13,750,000 $ 11,000 Cash share issue costs - (136 ) Proceeds net of share issue costs 13,750,000 $ 10,864 |
Disclosure of share issue costs | Number of common shares Impact on share capital Common shares issued at $0.75 per share 7,461,450 $ 5,596 Cash share issue costs - (211 ) Proceeds net of share issue costs 7,461,450 $ 5,385 |
Share Option and Warrant Rese_2
Share Option and Warrant Reserves (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share Option and Warrant Reserves | |
Disclosure of share based compensation expense | Years ended December 31 2022 2021 Recognized in net loss (earnings) and included in: Exploration and evaluation costs $ 481 $ 473 Fees, salaries and other employee benefits 1,188 1,573 Total share-based compensation expense $ 1,669 $ 2,046 |
Disclosure of fair value of the share based options granted | Years ended December 31 2022 2021 Risk-free interest rate 2.20% 0.91% Expected dividend yield Nil Nil Share price volatility 67% 67% Expected forfeiture rate 2.5% 0% Expected life in years 5.0 4.9 |
Disclosure of share options issued and outstanding and the weighted average exercise price | Number of share options Weighted average exercise price ($/option) Outstanding, December 31, 2020 8,141,004 $ 2.67 Granted 1,405,000 1.03 Exercised (5,834 ) 0.86 Expired (1,685,048 ) 3.62 Forfeited (1,103,125 ) 2.04 Outstanding, December 31, 2021 6,751,997 $ 2.00 Granted 3,430,000 1.00 Expired (608,237 ) 4.65 Forfeited (693,436 ) 1.77 Outstanding, December 31, 2022 8,880,324 $ 1.44 |
Disclosure of Share option outstanding | Options outstanding Options exercisable Exercise price ($/option) Number of shares Weighted average exercise price ($/option) Weighted average remaining life (years) Number of shares Weighted average exercise price ($/option) Weighted average remaining life (years) $0.56 – $1.00 4,848,330 0.97 3.90 3,031,143 0.95 3.78 $1.00 – $1.95 1,277,639 1.72 1.80 1,262,015 1.72 1.77 $2.05 – $3.26 2,754,355 2.16 2.65 2,754,355 2.16 2.65 8,880,324 1.44 3.21 7,047,513 1.56 2.98 |
Disclosure of warrant activity | Warrants outstanding Exercise price ($/share) Outstanding at December 31, 2020 1,626,740 $ 1.66 Issued (note 15b) 7,461,450 1.20 Exercised (101,042 ) 1.46 Expired (775,695 ) 1.42 Outstanding at December 31, 2021 8,211,453 $ 1.27 Expired (750,003 ) 1.95 Outstanding at December 31, 2022 7,461,450 $ 1.20 Expiry date Warrants outstanding Exercise price ($/share) October 6, 2024 5,085,670 1.20 October 12, 2024 2,375,780 1.20 Total 7,461,450 1.20 |
Key management personnel (Table
Key management personnel (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share Option and Warrant Reserves | |
Remuneration of the Company's key management personnel | Years ended December 31 2022 2021 Short-term benefits provided to executives (a) $ 1,719 $ 982 Directors’ fees paid to non-executive directors 203 204 Share-based payments 1,059 1,206 Total $ 2,981 $ 2,392 |
Supplemental cash flow inform_2
Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental cash flow information | |
Changes in non cash working capital | Years ended December 31 2022 2021 Accounts receivable $ (47 ) $ 505 Prepaid expenses and deposits (94 ) 260 Accounts payable and accrued liabilities (762 ) (499 ) Changes in non-cash working capital $ (903 ) $ 266 |
Cash received in operating activities | Years ended December 31 2022 2021 Income taxes refunded (note 5d) $ 187 $ 3,835 |
(Earnings) loss per share (Tabl
(Earnings) loss per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
(Earnings) loss per share | |
(Earnings) loss per share | Years ended December 31 2022 2021 Net loss (earnings) $ (24,908 ) $ 16,790 Weighted average basic number of shares outstanding 139,470,950 119,701,040 Basic loss (earnings) per share $ (0.18 ) $ 0.14 Weighted average diluted number of shares outstanding 139,481,236 119,701,040 Diluted loss (earnings) per share $ (0.18 ) $ 0.14 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments | |
Financial assets and liabilities by categories | At December 31, 2022 At December 31, 2021 Amortized Cost FVTPL Total Amortized Cost FVTPL Total Cash $ 10,309 $ - $ 10,309 $ 3,259 $ - $ 3,259 Marketable securities - 582 582 - 605 605 Deposits 25 - 25 243 - 243 Accounts receivable 369 - 369 372 - 372 Total financial assets $ 10,703 $ 582 $ 11,285 $ 3,874 605 $ 4,479 Accounts payable and accrued liabilities 1,148 - 1,148 1,888 - 1,888 Total financial liabilities $ 1,148 $ - $ 1,148 $ 1,888 $ - $ 1,888 |
Financial instrument at fair value | At December 31 2022 2021 Level 1 Level 2 Level 1 Level 2 (a) Marketable securities 582 - 282 323 |
Company's contractual obligations | Within 1 year 2 to 3 years Over 3 years At December 31 2022 Accounts payable and accrued liabilities $ 1,148 $ - $ - $ 1,148 Undiscounted lease payments 215 253 - 468 Total $ 1,363 $ 253 $ - $ 1,616 |
Foreign currency exposure related to its financial assets and liabilities | Years ended December 31 2022 2021 Financial assets US$ bank accounts $ 1 $ 569 Financial liabilities Accounts payable (61 ) (160 ) $ (60 ) $ 409 |
Management of Capital (Tables)
Management of Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Management of Capital | |
Disclosure of capital | Years ended December 31 2022 2021 Equity $ 194,793 $ 157,355 Less: cash (10,309 ) (3,259 ) $ 184,484 $ 154,096 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reconcillation of income tax recovery | Years ended December 31 2022 2021 (Earnings) Loss before income taxes $ (24,908 ) $ 16,790 Canadian federal and provincial income tax rates 27% 27% Expected income tax expense (recovery) 6,725 (4,533 ) Increase (decrease) in income tax recovery resulting from: Share-based compensation 448 552 Share issuance costs (37 ) (60 ) Adjustment to tax estimates 114 1,170 Amortization of flow-through share premium (844 ) (1,220 ) Flow-through expenditures renunciation 1,934 2,856 Difference in future and foreign tax rates 81 (172 ) Sale of Homestake Resource Corporation (3,021 ) - Other 634 (149 ) Increase in unrecognized tax asset (6,034 ) 1,556 Income tax expense (recovery) $ - $ - |
Deferred tax asset and liabilities | December 31 2021 Net loss December 31 2022 Deferred income tax assets Non-capital losses carried forward $ 21,032 $ (7,397 ) $ 13,635 Capital losses carried forward 183 (110 ) 73 Share issuance costs and CEC 552 (235 ) 317 Investments 18 4 22 Investments in associates - 633 633 Site reclamation obligations 1,121 24 1,145 Property and equipment 376 51 427 Mineral property interests 5,001 (28 ) 4,973 Capital lease obligation 124 (20 ) 104 Other 63 (63 ) - 28,470 (7,141 ) 21,329 Deferred income tax liabilities Property and equipment (86 ) 33 (53 ) Mineral property interests (1,606 ) (1,061 ) (545 ) Investments (42 ) 14 (28 ) Net deferred tax assets 26,736 (6,034 ) 20,702 Unrecognized deferred tax assets (26,736 ) 6,034 (20,702 ) Net deferred tax balance $ - $ - $ - December 31 2020 Net loss December 31 2021 Deferred income tax assets Non-capital losses carried forward $ 19,846 $ 1,186 $ 21,032 Capital losses carried forward 82 101 183 Share issuance costs and CEC 833 (281 ) 552 Investments 44 (26 ) 18 Site reclamation obligations 1,137 (16 ) 1,121 Property and equipment 312 64 376 Mineral property interests 3,985 1,016 5,001 Capital lease obligation 66 58 124 Other - 63 63 26,305 2,165 28,470 Deferred income tax liabilities Property and equipment (52 ) (34 ) (86 ) Mineral property interests (877 ) (729 ) (1,606 ) Investments (196 ) 154 (42 ) Net deferred tax assets 25,180 1,556 26,736 Unrecognized deferred tax assets (25,180 ) (1,556 ) (26,736 ) Net deferred tax balance $ - $ - $ - |
Nature of operations (Details N
Nature of operations (Details Narrative) | 12 Months Ended | ||||||
Oct. 13, 2022 CAD ($) $ / shares shares | Sep. 12, 2022 | Dec. 06, 2021 CAD ($) shares | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2022 $ / shares | Apr. 01, 2022 | |
Statement [Line Items] | |||||||
Non-brokered sale agreement | shares | 17,000,000 | ||||||
Share price | (per share) | $ 0.40 | $ 0.80 | |||||
Share of interest purchased | 7.40% | ||||||
Cash of acquisition | $ 5,000 | ||||||
Proceed from issuance of common stock | $ 10,864,000 | $ 5,385,000 | |||||
Dolly Varden [Member] | |||||||
Statement [Line Items] | |||||||
Share of interest purchased | 23.50% | ||||||
Share issued | $ 76,504,590 | ||||||
Proceed from issuance of common stock | $ 6,775 | ||||||
Shares acquired | shares | 76,504,590 | ||||||
Share outstanding percentage | 35.33% | ||||||
Fully diluted basis | 32.88% | ||||||
Homestake Ridge Gold Silver [Member] | |||||||
Statement [Line Items] | |||||||
Homestake resources owner ship percentage | 100% | ||||||
UMS [Member] | |||||||
Statement [Line Items] | |||||||
Share of interest purchased | 25% | 75% | |||||
Notice period for terminating agreement | 180 days | ||||||
ESJV [Member] | |||||||
Statement [Line Items] | |||||||
Description of amended joint venture arrangement | through their respective subsidiaries, completed the acquisition of the remaining approximately 23.77% participating interest of Azimut Exploration Inc. in the ESJV, on a pro-rata basis. As a result of the transaction, the 100% ESJV participating interests are now held 50.022% by the Company and 49.978% by Newmont, with Fury Gold remaining operator under an amended and restated joint operating agreement |
Significant accounting polici_4
Significant accounting policies (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Statement [Line Items] | |
Beneficial interest | 100% |
Fury Gold USA Limited | |
Statement [Line Items] | |
Beneficial interest | 100% |
Place of incorporations, Subsidiary | Delaware, U.S.A. |
Functional currency | USD |
Eastmain Resources Inc. | |
Statement [Line Items] | |
Beneficial interest | 100% |
Place of incorporations, Subsidiary | CAD |
Functional currency | ON, Canada |
Eastmain Mines Inc. | |
Statement [Line Items] | |
Beneficial interest | 100% |
Place of incorporations, Subsidiary | Canada |
Functional currency | CAD |
Standby Letter of Credit | |
Statement [Line Items] | |
Beneficial interest | 100% |
Place of incorporations, Subsidiary | BC, Canada |
Functional currency | CAD |
Significant accounting polici_5
Significant accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2022 | |
Dolly Varden [Member] | |
Statement [Line Items] | |
Beneficial interest | 23.50% |
Place of incorporation, Associates | BC, Canada |
UMS [Member] | |
Statement [Line Items] | |
Beneficial interest | 25% |
Place of incorporation, Associates | BC, Canada |
ESJV [Member] | |
Statement [Line Items] | |
Beneficial interest | 50.022% |
Place of incorporation, Joint arrangement | Quebec, Canada |
Significant accounting polici_6
Significant accounting policies (Details Narrative) - CAD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Beneficial interest | 100% | |
Basis of presentation description | On October 13, 2022, the Company sold 17,000,000 common shares of Dolly Varden, reducing its investment in Dolly Varden to 25.8% (note 1). Dolly Varden also closed a financing on December 22, 2022 that further diluted the Company’s interest to 23.5%. | |
Computer equipment [Member] | ||
Statement [Line Items] | ||
Estimated useful life | 3 | |
Right Of Use [Member] | ||
Statement [Line Items] | ||
Estimated useful life | assets the lease term, unless the transfer of the asset ownership is reasonably certain at the end of the lease term, whereupon depreciation is over the useful life | |
Machinery and equipment [Member] | ||
Statement [Line Items] | ||
Estimated useful life | 5-10 |
Critical accounting estimates_3
Critical accounting estimates and judgments (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Risk-free interest rate | 3.28% | 1.68% |
Annual inflation | 2.50% | 2.50% |
Critical accounting estimates_4
Critical accounting estimates and judgments (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
Principal amount | $ 166 |
Net refund amount | 187 |
Interest amount | $ 21 |
Sale of Homestake Resources (De
Sale of Homestake Resources (Details ) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
Sale of Homestake Resources | |
Mineral interests | $ 16,460 |
Reclamation bond | 68 |
Net assets | 16,528 |
Net proceeds: | |
Cash | 5,000 |
Working capital adjustment | 68 |
76,504,590 common shares of Dolly Varden | 60,439 |
Transaction costs | (589) |
Net proceeds | 64,918 |
Net assets derecognized | |
Net gain on disposition | $ 48,390 |
Sale of Homestake Resources (_2
Sale of Homestake Resources (Details Narrative) - Dolly Varden [Member] | 1 Months Ended |
Feb. 25, 2022 CAD ($) $ / shares shares | |
Statement [Line Items] | |
Cash proceeds | $ 5,000 |
Share issued during period for acquisition | shares | 76,504,590 |
Recognized a gain | $ 48,390 |
Market price of the shares | $ / shares | $ 0.79 |
Acquisition cost | $ 589 |
Cash and Restricted Cash (Detai
Cash and Restricted Cash (Details) - CAD ($) | Dec. 31, 2022 | Oct. 31, 2022 | Dec. 31, 2021 |
Cash and Restricted Cash | |||
Cash | $ 10,309,000 | $ 50,000 | $ 3,259,000 |
Restricted cash | 144,000 | 130,000 | |
Cash and restricted cash | $ 10,453,000 | $ 3,389,000 |
Cash and Restricted Cash (Det_2
Cash and Restricted Cash (Details Narrative) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Restricted Cash | ||
Restricted cash | $ 75 | $ 75 |
Marketable Securities (Details)
Marketable Securities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Marketable Securities | ||
Marketable securities, beginning | $ 605 | $ 2,675 |
Additions | 110 | 110 |
Sale of marketable securities | (1,000) | |
Realized loss on disposition | (311) | |
Unrealized net loss | (135) | (869) |
Marketable securities, ending | $ 582 | $ 605 |
Marketable Securities (Details
Marketable Securities (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 CAD ($) $ / shares shares | |
Benz Mining Corp [Member] | |
Statement [Line Items] | |
Common shares sold | 500,000 |
Exercise price | $ / shares | $ 0.12 |
Quebec | |
Statement [Line Items] | |
Common shares sold | 500,000 |
Fair value of common share | $ | $ 50 |
Property and Equipment (Details
Property and Equipment (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | |||
Net book value | $ 1,191,000 | $ 931,000 | |
Balance, beginning of the year | 1,191,000 | ||
Impairment of assets | 5,506,000 | 42,000 | |
Balance, end of the year | 931,000 | 1,191,000 | |
Accumulated depreciation and amortisation | |||
Statement [Line Items] | |||
Balance, beginning of the year | (1,883,000) | (1,542,000) | $ (1,193,000) |
Disposal of assets | (9,000) | ||
Impairment of assets | 13,000 | ||
Balance, end of the year | (1,883,000) | (1,542,000) | |
Depreciation | (341,000) | (371,000) | |
Gross carrying amount | |||
Statement [Line Items] | |||
Balance, beginning of the year | 2,814,000 | 2,733,000 | 2,415,000 |
Additions | 81,000 | 398,000 | |
Disposal of assets | 25,000 | ||
Impairment of assets | (55,000) | ||
Balance, end of the year | 2,814,000 | 2,733,000 | |
Gross carrying amount | Office Leases | |||
Statement [Line Items] | |||
Balance, beginning of the year | 531,000 | 531,000 | 236,000 |
Additions | 0 | 295,000 | |
Disposal of assets | 0 | 0 | |
Impairment of assets | 0 | ||
Balance, end of the year | 531,000 | 531,000 | |
Other | |||
Statement [Line Items] | |||
Net book value | 4,000 | 8,000 | |
Other | Accumulated depreciation and amortisation | |||
Statement [Line Items] | |||
Balance, beginning of the year | (7,000) | (3,000) | |
Disposal of assets | (9,000) | ||
Impairment of assets | 13,000 | ||
Balance, end of the year | (7,000) | (3,000) | |
Depreciation | (4,000) | (25,000) | |
Other | Gross carrying amount | |||
Statement [Line Items] | |||
Balance, beginning of the year | 11,000 | 11,000 | 23,000 |
Additions | 0 | 68,000 | |
Disposal of assets | 0 | 25,000 | |
Impairment of assets | (55,000) | ||
Balance, end of the year | 11,000 | 11,000 | |
Machinery and Equipment | |||
Statement [Line Items] | |||
Net book value | 679,000 | 802,000 | |
Machinery and Equipment | Accumulated depreciation and amortisation | |||
Statement [Line Items] | |||
Balance, beginning of the year | (1,593,000) | (1,389,000) | (1,176,000) |
Disposal of assets | 0 | ||
Impairment of assets | 0 | ||
Balance, end of the year | (1,593,000) | (1,389,000) | |
Depreciation | (204,000) | (213,000) | (17,000) |
Machinery and Equipment | Gross carrying amount | |||
Statement [Line Items] | |||
Balance, beginning of the year | 2,272,000 | 2,191,000 | 2,156,000 |
Additions | 81,000 | 35,000 | 35,000 |
Disposal of assets | 0 | ||
Impairment of assets | 0 | ||
Balance, end of the year | 2,272,000 | 2,191,000 | |
Office Lease | |||
Statement [Line Items] | |||
Net book value | 248,000 | 381,000 | |
Office Lease | Accumulated depreciation and amortisation | |||
Statement [Line Items] | |||
Balance, beginning of the year | (283,000) | (150,000) | (17,000) |
Disposal of assets | 0 | ||
Balance, end of the year | (283,000) | $ (150,000) | |
Depreciation | $ (133,000) | $ (133,000) |
Mineral Property Interests (Det
Mineral Property Interests (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | ||
Balance, beginning of the year | $ 160,693,000 | $ 160,772,000 |
Purchase of Homestake Ridge royalty | 400,000 | |
Sale of Homestake Resources | (16,460,000) | |
Dispositions | (50,000) | |
Acquisition of additional ownership interest in ESJV | 1,281,000 | |
Option payment received | (310,000) | (260,000) |
Change in estimate of provision for site reclamation and closure | (14,000) | (169,000) |
Balance, end of the year | 145,190,000 | 160,693,000 |
Quebec | ||
Statement [Line Items] | ||
Balance, beginning of the year | 125,094,000 | 125,354,000 |
Purchase of Homestake Ridge royalty | 0 | |
Sale of Homestake Resources | 0 | |
Dispositions | (50,000) | |
Acquisition of additional ownership interest in ESJV | 1,281,000 | |
Option payment received | (310,000) | (260,000) |
Change in estimate of provision for site reclamation and closure | (409,000) | 50,000 |
Balance, end of the year | 125,656,000 | 125,094,000 |
Nunavut | ||
Statement [Line Items] | ||
Balance, beginning of the year | 19,139,000 | 19,358,000 |
Purchase of Homestake Ridge royalty | 0 | |
Sale of Homestake Resources | 0 | |
Dispositions | 0 | |
Acquisition of additional ownership interest in ESJV | 0 | |
Option payment received | 0 | 0 |
Change in estimate of provision for site reclamation and closure | 395,000 | (219,000) |
Balance, end of the year | 19,534,000 | 19,139,000 |
British Columbia | ||
Statement [Line Items] | ||
Balance, beginning of the year | 16,460,000 | 16,060,000 |
Purchase of Homestake Ridge royalty | 400,000 | |
Sale of Homestake Resources | (16,460,000) | |
Dispositions | 0 | |
Acquisition of additional ownership interest in ESJV | 0 | |
Option payment received | 0 | 0 |
Change in estimate of provision for site reclamation and closure | 0 | 0 |
Balance, end of the year | $ 0 | $ 16,460,000 |
Mineral Property Interests (D_2
Mineral Property Interests (Details Narrative) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) shares | Oct. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) shares | Jul. 31, 2021 CAD ($) | |
Statement [Line Items] | |||||
Exploration expenditures | $ 3,500,000 | ||||
Interest paid | 1,000,000 | ||||
Commencement of commercial production | $ 1,500,000 | ||||
Net Smelter Royalty Description | The Committee Bay project is subject to a 1% Net Smelter Royalty (“NSR”) on gold production, with certain portions subject to an additional 1.5% NSR. The 1.5% NSR is payable on only 7,596 hectares and can be purchased by the Company within two years of commencement of commercial production for $2,000 for each one-third (0.5%) of the 1.5% NSR | ||||
Non-current accounts receivable | $ 0 | $ 50,000 | $ 50,000 | ||
Cash | 10,309,000 | 3,259,000 | $ 50,000 | ||
Option payment received | $ 310,000 | $ 150,000 | |||
Benz | |||||
Statement [Line Items] | |||||
Cash | $ 310,000 | ||||
Ruby Hill Properties | |||||
Statement [Line Items] | |||||
Cash | $ 260 | ||||
Common stock shares | shares | 174,658 | 174,658 | |||
Common stock fair value | $ 110 |
Investment in associates (Detai
Investment in associates (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
Statement [Line Items] | |
Beginning Balance, Carrying amount | $ 0 |
Ending Balance, Carrying amount | 42,430 |
Acquisition of equity investment | 60,590 |
Disposal (note 1) | (12,280) |
Company's share of net loss of associates | 5,880 |
Dolly Varden [Member] | |
Statement [Line Items] | |
Beginning Balance, Carrying amount | 0 |
Ending Balance, Carrying amount | 42,303 |
Acquisition of equity investment | 60,439 |
Disposal (note 1) | (12,280) |
Company's share of net loss of associates | 5,856 |
UMS [Member] | |
Statement [Line Items] | |
Beginning Balance, Carrying amount | 0 |
Ending Balance, Carrying amount | 127 |
Acquisition of equity investment | 151 |
Disposal (note 1) | 0 |
Company's share of net loss of associates | $ 24 |
Investment in associates (Det_2
Investment in associates (Details 1) - Dolly Varden [Member] $ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | |
Statement [Line Items] | |||
Carrying amount, investment | $ 55,265 | ||
Equity interest transferred to held for sale | 22.20% | ||
Carrying amount transferred to asset held for sale | $ 12,280 | ||
Less: FVLCD | (6,774) | ||
Impairment expense recognized | $ 5,506 | $ 5,506,000 | $ 5,506 |
Investment in associates (Det_3
Investment in associates (Details 2) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
Statement [Line Items] | |
Exploration and evaluation | $ 18,578 |
Marketing | 1,369 |
Share-based compensation | 4,219 |
Administrative and other | (387) |
Net loss of associate, 100% | 19,367 |
Company's share of net loss of associates | 5,880 |
Cost recoveries | (4,412) |
Dolly Varden [Member] | |
Statement [Line Items] | |
Exploration and evaluation | 16,936 |
Marketing | 1,057 |
Share-based compensation | 1,786 |
Administrative and other | (508) |
Net loss of associate, 100% | 19,271 |
Company's share of net loss of associates | 5,856 |
Cost recoveries | $ 0 |
Average equity interest for the period | 30.40% |
UMS [Member] | |
Statement [Line Items] | |
Exploration and evaluation | $ 1,642 |
Marketing | 312 |
Share-based compensation | 2,433 |
Administrative and other | 121 |
Net loss of associate, 100% | 96 |
Company's share of net loss of associates | 24 |
Cost recoveries | $ (4,412) |
Average equity interest for the period | 25% |
Investments in associates (Deta
Investments in associates (Details 3) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement [Line Items] | ||
Current Assets | $ 11,862 | $ 4,688 |
non current assets | 188,737 | 162,330 |
Current liabilities | 1,308 | 5,116 |
Net assets | 200,599 | $ 167,018 |
Dolly Varden [Member] | ||
Statement [Line Items] | ||
Current Assets | 28,914 | |
non current assets | 155,198 | |
Current liabilities | (4,100) | |
Non-current liabilities | 0 | |
Net assets | 180,012 | |
Company's equity share of net assets of associate | 42,303 | |
UMS [Member] | ||
Statement [Line Items] | ||
Current Assets | 879 | |
non current assets | 2,750 | |
Current liabilities | (1,654) | |
Non-current liabilities | 1,467 | |
Net assets | 508 | |
Company's equity share of net assets of associate | $ 127 |
Investments in associates (De_2
Investments in associates (Details 4) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments in associates | ||
Exploration and evaluation costs | $ 590 | $ 215 |
General and administration | 841 | 384 |
Total transactions for the period | $ 1,431 | $ 599 |
Investment in associates (Det_4
Investment in associates (Details Narrative) | 1 Months Ended | 12 Months Ended | |||||
Oct. 13, 2022 USD ($) shares | Sep. 30, 2022 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2022 CAD ($) shares | |
Statement [Line Items] | |||||||
Proceeds from euity interests | $ 0 | $ 152,000 | |||||
Share-based compensation expense | 1,059,000 | $ 1,206,000 | |||||
Dolly Varden [Member] | |||||||
Statement [Line Items] | |||||||
Common shares sold | shares | 17,000,000 | ||||||
Proceeds from euity interests | $ 6,800 | ||||||
Investment in shares classified as an asset held for sale | shares | 17,000,000 | ||||||
Impairment expense | $ 5,506 | $ 5,506,000 | 5,506,000 | ||||
Fair market value | $ 53,554 | ||||||
Equity interest | 22.20% | ||||||
UMS [Member] | |||||||
Statement [Line Items] | |||||||
Outstanding balance | $ 240 | 142 | |||||
Future rental expense | shares | 520 | 520 | |||||
Share-based compensation expense | $ 483 | $ 453 |
Flowthrough Share Premium Lia_3
Flowthrough Share Premium Liability (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Flow Through premium Liability [Member] | ||
Statement [Line Items] | ||
Balance, beginning of the year | $ 3,124 | $ 7,644 |
Flow-through eligible expenditures | (3,124) | (4,520) |
Balance, end of the year | 0 | 3,124 |
EXpenditures [Member] | ||
Statement [Line Items] | ||
Balance, beginning of the year | 7,290 | 18,079 |
Flow-through eligible expenditures | (7,290) | (10,789) |
Balance, end of the year | $ 0 | $ 7,290 |
Flowthrough Share Premium Lia_4
Flowthrough Share Premium Liability (Details Narrative) $ in Thousands | 1 Months Ended |
Sep. 30, 2020 USD ($) shares | |
Flowthrough Share Premium Liability | |
Equity financing | $ | $ 23,000 |
Subscription receipts | shares | 7,750,000 |
Subscription receipts sold | shares | 5,000,000 |
Flow-through receipts for gross proceeds | $ | $ 17,500 |
Flow-through shares subscription receipts sold | shares | 2,750,000 |
Non flow through gross proceeds | $ | $ 5,500 |
Provision for Site Reclamatio_3
Provision for Site Reclamation and Closure (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | ||
Balance, beginning of the year | $ 4,190,000 | $ 4,290,000 |
Accretion | 94,000 | 69,000 |
Change in estimate | (13,000) | (169,000) |
Balance, end of the year | 4,271,000 | 4,190,000 |
Quebec | ||
Statement [Line Items] | ||
Balance, beginning of the year | 1,934,000 | 1,854,000 |
Accretion | 42,000 | 30,000 |
Change in estimate | (409,000) | 50,000 |
Balance, end of the year | 1,567,000 | 1,934,000 |
Nunavut | ||
Statement [Line Items] | ||
Balance, beginning of the year | 2,256,000 | 2,436,000 |
Accretion | 52,000 | 39,000 |
Change in estimate | 396,000 | (219,000) |
Balance, end of the year | $ 2,704,000 | $ 2,256,000 |
Provision for Site Reclamatio_4
Provision for Site Reclamation and Closure (Details Narrative) - Provision for Decommissioning, Restoration and Rehabilitation Costs $ in Thousands, $ in Thousands | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) |
Statement [Line Items] | ||
Other provisions, undiscounted cash flows | $ 6,065 | $ 4,938 |
Major assumptions made concerning future events, other provisions, inflation rate | 2.50% | 2.50% |
Major assumptions made concerning future events, other provisions, discount rate | 3.28% | 1.68% |
Exploration and Evaluation Co_3
Exploration and Evaluation Costs (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 USD ($) | |
Statement [Line Items] | |||
Exploration and evaluation costs | $ 9,217 | $ 15,355 | $ 15,355 |
Nunavut | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 495 | 3,563 | |
Nunavut | Geophysical Analysis | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 0 | |
Nunavut | Fuel and Consumables | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 30 | |
Nunavut | Aircraft and Travel | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 21 | 1,079 | |
Nunavut | Exploration Drilling | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 601 | |
Nunavut | Expediting and Mobilization | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 170 | |
Nunavut | Assaying | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 50 | 264 | |
Nunavut | Camp Cost, Equipment and Field Supplies | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 193 | 377 | |
Nunavut | Geological Consulting Services | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 13 | 312 | |
Nunavut | Permitting, Environmental and Community Costs | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 164 | 184 | |
Nunavut | Salaries and Wages | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 45 | 458 | |
Nunavut | Share Based Compensation | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 9 | 88 | |
British Columbia | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 14 | 473 | |
British Columbia | Geophysical Analysis | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 0 | |
British Columbia | Fuel and Consumables | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 0 | |
British Columbia | Aircraft and Travel | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 2 | |
British Columbia | Exploration Drilling | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 125 | |
British Columbia | Expediting and Mobilization | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 6 | |
British Columbia | Assaying | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 2 | 21 | |
British Columbia | Camp Cost, Equipment and Field Supplies | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 10 | 124 | |
British Columbia | Geological Consulting Services | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 3 | |
British Columbia | Permitting, Environmental and Community Costs | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 0 | 53 | |
British Columbia | Salaries and Wages | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 1 | 100 | |
British Columbia | Share Based Compensation | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 1 | 39 | |
Quebec | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 8,708 | 11,319 | |
Quebec | Geophysical Analysis | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 127 | 185 | |
Quebec | Fuel and Consumables | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 537 | 462 | |
Quebec | Aircraft and Travel | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 768 | 429 | |
Quebec | Exploration Drilling | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 1,768 | 3,448 | |
Quebec | Expediting and Mobilization | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 12 | 79 | |
Quebec | Assaying | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 1,638 | 2,502 | |
Quebec | Camp Cost, Equipment and Field Supplies | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 844 | 1,280 | |
Quebec | Geological Consulting Services | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 50 | 481 | |
Quebec | Permitting, Environmental and Community Costs | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 163 | 186 | |
Quebec | Salaries and Wages | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 2,330 | 1,921 | |
Quebec | Share Based Compensation | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 471 | 346 | |
Total | Geophysical Analysis | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 127 | 185 | |
Total | Fuel and Consumables | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 537 | 492 | |
Total | Aircraft and Travel | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 789 | 1,510 | |
Total | Exploration Drilling | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 1,768 | 4,174 | |
Total | Expediting and Mobilization | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 12 | 255 | |
Total | Assaying | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 1,690 | 2,787 | |
Total | Camp Cost, Equipment and Field Supplies | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 1,047 | 1,781 | |
Total | Geological Consulting Services | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 63 | 796 | |
Total | Permitting, Environmental and Community Costs | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 327 | 423 | |
Total | Salaries and Wages | |||
Statement [Line Items] | |||
Exploration and evaluation costs | 2,376 | 2,479 | |
Total | Share Based Compensation | |||
Statement [Line Items] | |||
Exploration and evaluation costs | $ 481 | $ 473 |
Share Capital (Details)
Share Capital (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 CAD ($) shares | |
October 2021 Offering | |
Statement [Line Items] | |
Number of common shares issued | shares | 7,461,450 |
Common shares issued, impact on share capital | $ 5,596 |
Cash share issue costs, impact on share capital | $ (211) |
Proceeds net of share issue costs | shares | 7,461,450 |
Proceeds net of share issue costs, impact on share capital | $ 5,385 |
April 2022 Offering | |
Statement [Line Items] | |
Number of common shares issued | shares | 13,750,000 |
Common shares issued, impact on share capital | $ 11,000 |
Cash share issue costs, impact on share capital | $ (136) |
Proceeds net of share issue costs | shares | 13,750,000 |
Proceeds net of share issue costs, impact on share capital | $ 10,864 |
Share Capital (Details Narrativ
Share Capital (Details Narrative) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 CAD ($) shares | Dec. 31, 2021 CAD ($) shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2022 $ / shares | Oct. 13, 2022 $ / shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Statement [Line Items] | ||||||
Private equity placement for gross proceeds | $ 11,000 | |||||
Common stock shares | shares | 13,750,000 | |||||
Share price per unit | (per share) | $ 0.80 | $ 0.40 | ||||
Share issue costs | $ 136 | |||||
Equity reserves share capital | $ 20,309 | $ 18,640 | ||||
Warrants | ||||||
Statement [Line Items] | ||||||
Gross proceeds | $ 147 | |||||
Shares issued | shares | 101,042 | 101,042 | ||||
Weighted average exercise price | $ / shares | $ 1.46 | |||||
Equity reserves share capital | $ 12 | |||||
Options | ||||||
Statement [Line Items] | ||||||
Gross proceeds | $ 5 | |||||
Shares issued | shares | 5,834 | 5,834 | ||||
Weighted average exercise price | $ / shares | $ 0.86 | |||||
Equity reserves share capital | $ 1 | |||||
October 2021 Offering | ||||||
Statement [Line Items] | ||||||
Common stock shares | shares | 7,461,450 | 7,461,450 | ||||
Share price per unit | $ / shares | $ 0.75 | |||||
Share issue costs | $ 211 | |||||
Gross proceeds | $ 5,596 | |||||
Warrant share price per unit | $ / shares | $ 1.20 | |||||
Share issuances description | The expiry date of the warrants can be accelerated to 30 days with notice from the Company should the common shares trade after the expiry of the four-month hold period at a price equal to or greater than CAD$1.50 for 20 consecutive trading days | The expiry date of the warrants can be accelerated to 30 days with notice from the Company should the common shares trade after the expiry of the four-month hold period at a price equal to or greater than CAD$1.50 for 20 consecutive trading days | ||||
Commissions | $ 68 | |||||
Other issuance costs | $ 143 | |||||
Homestake Ridge | ||||||
Statement [Line Items] | ||||||
Share issue costs | $ 10 | |||||
Shares issued | shares | 328,767 | 328,767 | ||||
Fair market value of shares issued | $ 300 | |||||
Royalty percentage | 2% | 2% |
Share Option and Warrant Rese_3
Share Option and Warrant Reserves (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Option and Warrant Reserves | ||
Exploration and evaluation costs | $ 481 | $ 473 |
Fees, salaries and other employee benefits | 1,188 | 1,573 |
Total share-based compensation expense | $ 1,669 | $ 2,046 |
Share Option and Warrant Rese_4
Share Option and Warrant Reserves (Details 1) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Option and Warrant Reserves | ||
Risk-free interest rate | 2.20% | 0.91% |
Expected dividend yield | 0% | 0% |
Share price volatility | 67% | 67% |
Expected forfeiture rate | 2.50% | 0% |
Expected life (in years - weighted average) | 5 years | 4 years 10 months 24 days |
Share Option and Warrant Rese_5
Share Option and Warrant Reserves (Details 2) | 12 Months Ended | |
Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | |
Share Option and Warrant Reserves | ||
Number of share options outstanding Beginning of the year | 6,751,997 | 8,141,004 |
Number of share options granted | 3,430,000 | 1,405,000 |
Number of share options exercised | 5,834 | |
Number of share options expired | 608,237 | 1,685,048 |
Number of share options forfeited | 693,436 | 1,103,125 |
Number of share options outstanding end of the year | 8,880,324 | 6,751,997 |
Weighted average exercise price outstanding Beginning of the year | $ 2 | $ 2.67 |
Weighted average exercise price granted | 1 | 1.03 |
Weighted average exercise price exercised | 0.86 | |
Weighted average exercise price expired | 4.65 | 3.62 |
Weighted average exercise price forfeited | 1.77 | 2.04 |
Weighted average exercise price outstanding end of the year | $ 1.44 | $ 2 |
Share Option and Warrant Rese_6
Share Option and Warrant Reserves (Details 3) | 12 Months Ended | ||
Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | Dec. 31, 2020 $ / shares | |
Statement [Line Items] | |||
Number of share options outstanding beginning of the year | 8,880,324 | 6,751,997 | 8,141,004 |
Weighted average exercise price outstanding beginning of the year | $ 1.44 | $ 2 | $ 2.67 |
Options outstanding, remaining contractual life | 3 years 2 months 15 days | ||
Number of options exercisable | 7,047,513 | ||
Options exercisable, exercise price | $ 1.56 | ||
Options exercisable, remaining contractual life | 2 years 11 months 23 days | ||
Exercise Price Range 1 | |||
Statement [Line Items] | |||
Number of share options outstanding beginning of the year | 4,848,330 | ||
Weighted average exercise price outstanding beginning of the year | $ 0.97 | ||
Options outstanding, remaining contractual life | 3 years 10 months 24 days | ||
Number of options exercisable | 3,031,143 | ||
Options exercisable, exercise price | $ 0.95 | ||
Options exercisable, remaining contractual life | 3 years 9 months 10 days | ||
Exercise Price Range 2 | |||
Statement [Line Items] | |||
Number of share options outstanding beginning of the year | 1,277,639 | ||
Weighted average exercise price outstanding beginning of the year | $ 1.72 | ||
Options outstanding, remaining contractual life | 1 year 9 months 18 days | ||
Number of options exercisable | 1,262,015 | ||
Options exercisable, exercise price | $ 1.72 | ||
Options exercisable, remaining contractual life | 1 year 9 months 7 days | ||
Exercise Price Range 3 | |||
Statement [Line Items] | |||
Number of share options outstanding beginning of the year | 2,754,355 | ||
Weighted average exercise price outstanding beginning of the year | $ 2.16 | ||
Options outstanding, remaining contractual life | 2 years 7 months 24 days | ||
Number of options exercisable | 2,754,355 | ||
Options exercisable, exercise price | $ 2.16 | ||
Options exercisable, remaining contractual life | 2 years 7 months 24 days |
Share Option and Warrant Rese_7
Share Option and Warrant Reserves (Details 4) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Option and Warrant Reserves | ||
Outstanding warrants Beginning of the year | 8,211,453 | 1,626,740 |
Warrants issued | 7,461,450 | |
Warrants exercised | 101,042 | |
Warrants expired | (750,003) | (775,695) |
Outstanding warrants end of the year | 7,461,450 | 8,211,453 |
Outstanding warrants, exercise price Brginning of the year | $ 1.27 | $ 1.66 |
Warrants issued, exercise price | 1.20 | |
Warrants exercised, exercise price | 1.46 | |
Warrants expired, exercise price | 1.95 | 1.42 |
Outstanding warrants, exercise price end of the year | $ 1.20 | $ 1.27 |
Share Option and Warrant Rese_8
Share Option and Warrant Reserves (Details 5) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement [Line Items] | |||
Outstanding warrants beginning of the year | 7,461,450 | 8,211,453 | 1,626,740 |
Outstanding warrants, exercise price beginning of the year | $ 1.20 | $ 1.27 | $ 1.66 |
Exercise Price Range 1 | |||
Statement [Line Items] | |||
Outstanding warrants beginning of the year | 5,085,670 | ||
Outstanding warrants, exercise price beginning of the year | $ 1.20 | ||
Exercise Price Range 2 | |||
Statement [Line Items] | |||
Outstanding warrants beginning of the year | 2,375,780 | ||
Outstanding warrants, exercise price beginning of the year | $ 1.20 |
Share Option and Warrant Rese_9
Share Option and Warrant Reserves (Details Narratives) | 12 Months Ended | |
Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | |
Share Option and Warrant Reserves | ||
Number of share options granted | 3,430,000 | 1,405,000 |
Weighted average exercise price granted | $ 0.46 | $ 0.56 |
Key management personnel (Detai
Key management personnel (Details ) $ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) | |
Share Option and Warrant Reserves | ||
Short-term benefits provided to executives | $ 1,719 | $ 982 |
Directors fees paid to non-executive directors | 203 | 204 |
Share-based payments | 1,059 | 1,206 |
Key management personnel compensation | $ 2,981 | $ 2,392 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) | |
Supplemental cash flow information | ||
Amounts receivable | $ (47) | $ 505 |
Prepaid expenses and deposits | (94) | 260 |
Accounts payable and accrued liabilities | (762) | (499) |
Changes in non-cash working capital | $ (903) | $ 266 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental cash flow information | ||
Income taxes refunded | $ 187 | $ 3,835 |
Loss Per Share (Details)
Loss Per Share (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
(Earnings) loss per share | ||
Net loss (earnings) | $ (24,908) | $ 16,790 |
Weighted average basic number of shares outstanding | 139,470,950 | 119,701,040 |
Basic loss (earnings) per share | $ (0.18) | $ 0.14 |
Weighted average diluted number of shares outstanding | 139,481,236 | 119,701,040 |
Diluted loss (earnings) per share | $ (0.18) | $ 0.14 |
Financial Instruments (Details)
Financial Instruments (Details) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement [Line Items] | |||
Financial assets, amortized cost | $ 10,703 | $ 3,874 | |
Financial assets, FVTPL | 582 | 605 | $ 2,675 |
Financial assets, total | 11,285 | 4,479 | |
Financial liabilities, amortized cost | 1,148 | 1,888 | |
Financial liabilities, FVTPL | 0 | 0 | |
Financial liabilities, total | 1,148 | 1,888 | |
Accounts Receivable | |||
Statement [Line Items] | |||
Financial assets, amortized cost | 369 | 372 | |
Financial assets, FVTPL | 0 | 0 | |
Financial assets, total | 369 | 372 | |
Cash | |||
Statement [Line Items] | |||
Financial assets, amortized cost | 10,309 | 3,259 | |
Financial assets, FVTPL | 0 | 0 | |
Financial assets, total | 10,309 | 3,259 | |
Marketable Securities | |||
Statement [Line Items] | |||
Financial assets, amortized cost | 0 | 0 | |
Financial assets, FVTPL | 582 | 605 | |
Financial assets, total | 582 | 605 | |
Deposits | |||
Statement [Line Items] | |||
Financial assets, amortized cost | 25 | 243 | |
Financial assets, FVTPL | 0 | 0 | |
Financial assets, total | 25 | 243 | |
Accounts Payable and Accrued Liabilities | |||
Statement [Line Items] | |||
Financial liabilities, amortized cost | 1,148 | 1,888 | |
Financial liabilities, FVTPL | 0 | 0 | |
Financial liabilities, total | $ 1,148 | $ 1,888 |
Financial Instruments (Details
Financial Instruments (Details 1) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement [Line Items] | |||
Marketable securities | $ 582 | $ 605 | $ 2,675 |
Level 1 | |||
Statement [Line Items] | |||
Marketable securities | 582 | 282 | |
Level 2 | |||
Statement [Line Items] | |||
Marketable securities | $ 0 | $ 323 |
Financial Instruments (Detail_2
Financial Instruments (Details 2) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement [Line Items] | ||
Accounts payable and accrued liabilities | $ 1,148 | $ 1,888 |
Undiscounted lease payments | 468 | |
Total | 1,616 | |
Over 3 Years | ||
Statement [Line Items] | ||
Accounts payable and accrued liabilities | 0 | |
Undiscounted lease payments | 0 | |
Total | 0 | |
2 to 3 Years | ||
Statement [Line Items] | ||
Accounts payable and accrued liabilities | 0 | |
Undiscounted lease payments | 253 | |
Total | 253 | |
Within 1 Year | ||
Statement [Line Items] | ||
Accounts payable and accrued liabilities | 1,148 | |
Undiscounted lease payments | 215 | |
Total | $ 1,363 |
Financial Instruments (Detail_3
Financial Instruments (Details 3) - CAD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Liabilities Denominated in Foreign Currencies | ||
Statement [Line Items] | ||
Net exposure | $ (61,000) | $ (160,000) |
Financial Assets Denominated in Foreign Currencies | ||
Statement [Line Items] | ||
Net exposure | 1,000 | 569,000 |
Currency risk | ||
Statement [Line Items] | ||
Net exposure | $ (60) | $ 409,000 |
Financial Instruments (Detail_4
Financial Instruments (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Instruments | |||
Gold incurred a loss | $ 24,905,000 | $ 16,790,000 | |
Unrestricted cash | 10,309 | 3,259 | |
Working capital deficit | 428,000 | ||
Accumulated deficit | (131,841,000) | (156,749) | |
Working capital Surplus | 10,554 | ||
Cash payments | 215 | $ 441 | |
Recognized in prepaid expenses | $ 78 | $ 144 |
Management of Capital (Details)
Management of Capital (Details) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Management of Capital | ||
Equity | $ 194,793 | $ 157,355 |
Less cash | 10,309 | 3,259 |
Capital | $ 184,484 | $ 154,096 |
Income Taxes (Details)
Income Taxes (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | ||
Loss before income taxes | $ (24,908) | $ (16,790) |
Canadian federal and provincial income tax rates | 27% | 27% |
Expected income tax recovery | $ 6,725 | $ (4,533) |
Increase (decrease) in income tax recovery resulting from: | ||
Share-based compensation | 448 | 552 |
Share issuance costs | (37) | (60) |
Adjustment to tax estimates | 114 | 1,170 |
Amortization of flow-through share premium | (844) | (1,220) |
Flow-through expenditures renunciation | 1,934 | 2,856 |
Difference in future and foreign tax rates | 81 | (172) |
Sale of Homestake Resource Corporation | (3,021) | 0 |
Other | 634 | (149) |
Increase in unrecognized tax asset | (6,034) | 1,556 |
Income tax recovery | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | |||
Net loss | $ 0 | $ 0 | $ 0 |
Equity | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 |
Non-capital losses | |||
Statement [Line Items] | |||
Net loss | (7,397,000) | 1,186,000 | |
Equity | 0 | 0 | |
Balance, end of period | 13,635,000 | 21,032,000 | 19,846,000 |
Capital losses carried forward | |||
Statement [Line Items] | |||
Net loss | (110,000) | 101,000 | |
Equity | 0 | 0 | |
Balance, end of period | 73,000 | 183,000 | 82,000 |
Share issuance costs & CEC | |||
Statement [Line Items] | |||
Net loss | (235,000) | (281,000) | |
Equity | 0 | 0 | |
Balance, end of period | 317,000 | 552,000 | 833,000 |
Investments | |||
Statement [Line Items] | |||
Net loss | (26,000) | 4,000 | |
Equity | 0 | 0 | |
Balance, end of period | 22,000 | 18,000 | 44,000 |
Site reclamation obligations | |||
Statement [Line Items] | |||
Net loss | 24,000 | (16,000) | |
Equity | 0 | 0 | |
Balance, end of period | 1,145,000 | 1,121,000 | 1,137,000 |
Property and equipment | |||
Statement [Line Items] | |||
Net loss | 51,000 | 64,000 | |
Equity | 0 | 0 | |
Balance, end of period | 427,000 | 376,000 | 312,000 |
Deferred tax assets, mineral property interests | |||
Statement [Line Items] | |||
Net loss | 1,016,000 | (28,000) | |
Balance, end of period | 4,973,000 | 5,001,000 | 3,985,000 |
Capital Lease Obligation | |||
Statement [Line Items] | |||
Net loss | (20,000) | 58,000 | |
Equity | 0 | 0 | |
Balance, end of period | 104,000 | 124,000 | 66,000 |
Total deferred tax assets | |||
Statement [Line Items] | |||
Net loss | (7,141,000) | 2,165,000 | |
Equity | 0 | ||
Balance, end of period | 21,329,000 | 28,470,000 | 26,305,000 |
Deferred tax liabilities, property and equipment | |||
Statement [Line Items] | |||
Net loss | 33,000 | (34,000) | |
Equity | 0 | 0 | |
Balance, end of period | (53,000) | (86,000) | (52,000) |
Deferred tax liabilities, mineral property interests | |||
Statement [Line Items] | |||
Net loss | (1,061,000) | (729,000) | |
Equity | 0 | 0 | |
Balance, end of period | (545,000) | (1,606,000) | (877,000) |
Deferred tax liabilities, investement | |||
Statement [Line Items] | |||
Net loss | 14,000 | 154,000 | |
Equity | 0 | 0 | |
Balance, end of period | 28,000 | (42,000) | (196,000) |
Total net deferred tax assets (liabilities) | |||
Statement [Line Items] | |||
Net loss | (6,034,000) | 1,556,000 | |
Equity | 0 | 0 | |
Balance, end of period | 20,702,000 | 26,736,000 | 25,180,000 |
Unrecogonized deferred tax assets | |||
Statement [Line Items] | |||
Net loss | 6,034,000 | (1,556,000) | |
Equity | 0 | 0 | |
Balance, end of period | (20,702,000) | (25,180,000) | (25,180,000) |
Other | |||
Statement [Line Items] | |||
Net loss | (63,000) | 63,000 | |
Equity | 0 | 0 | |
Balance, end of period | $ 0 | $ 63,000 | $ 63,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes | ||
Accumulated non-capital losses | $ 51,335 | $ 79,718 |
Unused tax losses for which no deferred tax asset recognised | $ 247 | $ 1,312 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - CAD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | |||
Dec. 12, 2022 | Mar. 23, 2023 | Jan. 17, 2023 | Dec. 31, 2022 | |
Statement [Line Items] | ||||
Description of option agreement | acquire a 100% interest in the Radis Property through payment of certain cash and common shares over a three year period, payments of which may be accelerated by the Optionee. The Company shall retain a 2% NSR on the property, three-quarters of which may be purchased by the Optionee for $1,500 | |||
Share Options | ||||
Statement [Line Items] | ||||
Shares issued | 2,712,800 | |||
Exercise price | $ 0.82 | |||
Description of share option | will vest over 18 months with an expiry term of five years | |||
Share issued to ums employees | 983,800 | |||
Private Placement Finanacing | ||||
Statement [Line Items] | ||||
Shares issued | 2,712,800 | |||
FT price per share | $ 1.44 | |||
Gross proceeds | $ 8,750 |