Trilogy Metals (TMQ) 10-Q 8 Jul 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	May 31, 2020	Jul. 07, 2020
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 31, 2020
Document Fiscal Year Focus	2020
Entity Current Reporting Status	Yes
Document Fiscal Period Focus	Q2
Entity Registrant Name	Trilogy Metals Inc.
Entity Central Index Key	0001543418
Current Fiscal Year End Date	--11-30
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Title of 12(b) Security	Common Shares
Trading Symbol	TMQ
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		140,965,583
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false

Interim Consolidated Balance Sh

Interim Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2020	Nov. 30, 2019
Current assets
Cash and cash equivalents	$ 12,343	$ 19,174
Accounts receivable (note 3)	699	264
Deposits and prepaid amounts	473	719
Total Current Assets	13,515	20,157
Equity method investment (note 4)	175,261
Plant and equipment (note 5)	239	715
Mineral properties and development costs (note 6)		30,631
Rent deposit (note 8 (a))		114
Right of use asset (note 8 (a))	529
Total Assets	189,544	51,617
Current liabilities
Accounts payable and accrued liabilities (note 7)	539	2,354
Current portion of lease liability	139
Current liabilities	678	2,354
Long-term portion of lease liability (note 8 (b))	460
Mineral properties purchase option		31,000
Total Liabilities	1,138	33,354
Shareholders' equity
Share capital (note 9) - unlimited common shares authorized, no par value Issued - 140,922,886 (2019 - 140,427,761)	178,650	177,971
Contributed surplus	122	122
Contributed surplus - options (note 9(a))	22,661	21,123
Contributed surplus - units (note 9(b))	1,508	1,759
Deficit	(14,535)	(182,712)
Total Stockholders' Equity	188,406	18,263
Total Liabilities and Stockholders' Equity	$ 189,544	$ 51,617

Interim Consolidated Balance _2

Interim Consolidated Balance Sheets (Parenthetical) - $ / shares	May 31, 2020	Nov. 30, 2019
Interim Consolidated Balance Sheets
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares, Issued	140,922,886	140,427,761

Interim Consolidated Statements

Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Expenses
Amortization	$ 16	$ 38	$ 58	$ 75
Feasibility study	742		742
Foreign exchange (gain) loss	(16)	5	7	(29)
General and administrative	433	436	1,084	928
Investor relations	101	175	227	292
Mineral properties expense (note 6(a))		2,906	1,545	4,441
Professional fees	198	153	866	244
Salaries	226	282	450	563
Salaries - stock-based compensation	770	664	1,966	2,603
Total expenses	2,470	4,659	6,945	9,117
Other items
Gain on derecognition of assets (note 4(a))			(175,770)
Loss on equity investment in Ambler Metals LLC. (note 4(b))	561		739
Interest and other income	(29)	(150)	(91)	(272)
Comprehensive (loss) earnings for the period	$ (3,002)	$ (4,509)	$ 168,177	$ (8,845)
Basic (loss) earnings per common share	$ (0.02)	$ (0.04)	$ 1.20	$ (0.07)
Diluted (loss) earnings per common share	$ (0.02)	$ (0.04)	$ 1.13	$ (0.07)
Basic weighted average number of common shares outstanding	140,785,082	132,095,920	140,701,337	132,007,414
Diluted weighted average number of common shares outstanding	140,785,082	132,095,920	148,705,482	132,007,414

Interim Consolidated Statemen_2

Interim Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Share capital [Member]	Warrants [Member]	Contributed surplus [Member]	Contributed surplus - options [Member]	Contributed surplus - units [Member]	Deficit [Member]	Total
Beginning Balance at Nov. 30, 2018	$ 164,069	$ 2,253	$ 122	$ 19,076	$ 1,489	$ (154,807)	$ 32,202
Beginning Balance (Shares) at Nov. 30, 2018	131,585,612
Exercise of options	$ 28			(28)
Exercise of options (Shares)	44,230
Restricted Share Units	$ 424				(424)
Restricted Share Units (Shares)	412,501
Stock-based compensation				1,586	353		1,939
Earnings (loss) for the period						(4,336)	(4,336)
Ending Balance at Feb. 28, 2019	$ 164,521	2,253	122	20,634	1,418	(159,143)	29,805
Ending Balance (Shares) at Feb. 28, 2019	132,042,343
Beginning Balance at Nov. 30, 2018	$ 164,069	2,253	122	19,076	1,489	(154,807)	32,202
Beginning Balance (Shares) at Nov. 30, 2018	131,585,612
Earnings (loss) for the period							(8,845)
Ending Balance at May. 31, 2019	$ 164,574	2,253	122	20,936	1,727	(163,652)	25,960
Ending Balance (Shares) at May. 31, 2019	132,143,407
Beginning Balance at Nov. 30, 2018	$ 164,069	2,253	122	19,076	1,489	(154,807)	32,202
Beginning Balance (Shares) at Nov. 30, 2018	131,585,612
Ending Balance at Nov. 30, 2019	$ 177,971		122	21,123	1,759	(182,712)	18,263
Ending Balance (Shares) at Nov. 30, 2019	140,427,761
Beginning Balance at Feb. 28, 2019	$ 164,521	2,253	122	20,634	1,418	(159,143)	29,805
Beginning Balance (Shares) at Feb. 28, 2019	132,042,343
Exercise of options	$ 53			(53)
Exercise of options (Shares)	101,064
Stock-based compensation				355	309		664
Earnings (loss) for the period						(4,509)	(4,509)
Ending Balance at May. 31, 2019	$ 164,574	$ 2,253	122	20,936	1,727	(163,652)	25,960
Ending Balance (Shares) at May. 31, 2019	132,143,407
Beginning Balance at Nov. 30, 2019	$ 177,971		122	21,123	1,759	(182,712)	18,263
Beginning Balance (Shares) at Nov. 30, 2019	140,427,761
Exercise of options	$ 6			(6)
Exercise of options (Shares)	19,514
Restricted Share Units	$ 330				(330)
Restricted Share Units (Shares)	212,501
Stock-based compensation				1,155	41		1,196
Earnings (loss) for the period						171,179	171,179
Ending Balance at Feb. 29, 2020	$ 178,307		122	22,272	1,470	(11,533)	190,638
Ending Balance (Shares) at Feb. 29, 2020	140,659,776
Beginning Balance at Nov. 30, 2019	$ 177,971		122	21,123	1,759	(182,712)	18,263
Beginning Balance (Shares) at Nov. 30, 2019	140,427,761
Earnings (loss) for the period							168,177
Ending Balance at May. 31, 2020	$ 178,650		122	22,661	1,508	(14,535)	188,406
Ending Balance (Shares) at May. 31, 2020	140,922,886
Beginning Balance at Feb. 29, 2020	$ 178,307		122	22,272	1,470	(11,533)	190,638
Beginning Balance (Shares) at Feb. 29, 2020	140,659,776
Exercise of options	$ 31			(31)
Exercise of options (Shares)	63,110
Restricted Share Units	$ 312				(312)
Restricted Share Units (Shares)	200,000
Stock-based compensation				420	350		770
Earnings (loss) for the period						(3,002)	(3,002)
Ending Balance at May. 31, 2020	$ 178,650		$ 122	$ 22,661	$ 1,508	$ (14,535)	$ 188,406
Ending Balance (Shares) at May. 31, 2020	140,922,886

Interim Consolidated Statemen_3

Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	May 31, 2020	May 31, 2019
Cash flows used in operating activities
Earnings (loss) for the period	$ 168,177	$ (8,845)
Items not affecting cash
Amortization	58	75
Right of use asset amortization	86
Loss on working capital written-off upon joint venture formation	18
Gain on derecognition of assets (note 4(a))	(175,770)
Loss on equity investment in Ambler Metals LLC. (note 4(b))	739
Unrealized foreign exchange loss	11	8
Stock-based compensation	1,966	2,603
Operating lease payments	(97)
Net change in non-cash working capital
Increase in accounts receivable	(435)	(148)
Decrease (increase) in deposits and prepaid amounts	246	(894)
Decrease in accounts payable and accrued liabilities	(1,815)	(176)
Net Cash Provided by (Used in) Operating Activities	(6,816)	(7,377)
Cash flows from investing activities
Mineral properties funding		10,200
Net Cash Provided by (Used in) Investing Activities		10,200
(Decrease) increase in cash and cash equivalents	(6,816)	2,823
Effect of exchange rate on cash and cash equivalents	(15)	(8)
Cash and cash equivalents - beginning of year	19,174	22,991
Cash and cash equivalents - end of year	$ 12,343	$ 25,806

Nature of operations

Nature of operations	6 Months Ended
	May 31, 2020
Nature of operations
Nature of operations	1) Nature of operations Trilogy Metals Inc. (“Trilogy” or the “Company”) was incorporated in British Columbia under the Business Corporations Act (BC) on April 27, 2011. The Company is engaged in the exploration and development of mineral properties, through our equity investee (see note 4), with a focus on the Upper Kobuk Mineral Projects (“UKMP”), including the Arctic and Bornite Projects located in Northwest Alaska in the United States of America (“US”).

Summary of significant accounti

Summary of significant accounting policies	6 Months Ended
	May 31, 2020
Summary of significant accounting policies
Summary of significant accounting policies	2) Summary of significant accounting policies Basis of presentation These interim consolidated financial statements have been prepared using accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of Trilogy and its wholly owned subsidiary, NovaCopper US Inc. (dba “Trilogy Metals US”). All significant intercompany transactions are eliminated on consolidation. For variable interest entities (“VIEs”) where Trilogy is not the primary beneficiary, we use the equity method of accounting. All figures are in United States dollars unless otherwise noted. References to CAD$ refer to amounts in Canadian dollars. The unaudited interim consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s financial position as of May 31, 2020 and our results of operations and cash flows for the six months ended May 31, 2020 and May 31, 2019. The results of operations for the six months ended May 31, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending November 30, 2020. As these interim consolidated financial statements do not contain all of the disclosures required by U.S. GAAP for annual financial statements, these unaudited interim consolidated financial statements should be read in conjunction with the annual financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2019, filed with the U.S. Securities and Exchange Commission (“SEC”) and Canadian securities regulatory authorities on February 13, 2020. These interim consolidated financial statements were approved by the Company’s Audit Committee on behalf of the Board of Directors for issue on July 7, 2020. Accounting standards adopted Leases In February 2016, the FASB issued new accounting requirements for accounting for, presentation of, and classification of leases (“ASU 2016-02”) which, together with subsequent amendments, is included in ASC 842, Leases. ASC 842 became effective for the Company as of December 1, 2019. The Company adopted ASC 842 using the modified retrospective transition method by applying the transition provision and recording our cumulative adjustment to opening deficit at the beginning of the period of adoption on December 1, 2019, rather than at the beginning of the comparative period presented. Therefore, in the comparative periods, we continue to apply the legacy guidance in ASC 840, including its disclosure requirements. We elected to apply all of the transition practical expedients available, including: · the package of three practical expedients to (1) not reassess whether any expired or existing contracts are or contain leases, (2) not reassess the lease classification for any expired or existing leases, and (3) not reassess initial direct costs for any existing lease; · the hindsight practical expedient to use hindsight when determining lease term and assessing impairment of right-of-use assets, if any; and · the easements practical expedient to continue applying our current policy for accounting for any land easements expired before or existing as of December 1, 2019. In addition, we elected to apply the short-term lease recognition exemption and elected to apply the practical expedient to not separate lease and non-lease components for all applicable leases on transition. The adoption of this new standard resulted in the recognition of right of use assets and lease liabilities of $786,000 as at December 1, 2019. New accounting policy Investment in affiliates Investments in unconsolidated ventures over which the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method and include the Company’s investment in the Ambler Metals project. We identified Ambler Metals LLC as a VIE as the entity is dependent on funding from its owners. All funding, ownership, voting rights and power to exercise control is shared equally on a 50/50 basis between the owners of the VIE. Therefore, the Company has determined that it is not the primary beneficiary of the VIE. The Company’s maximum exposure to loss is its investment in Ambler Metals LLC. Ambler Metals LLC is a non-publicly traded equity investee holding exploration and development projects. The Company reviews and evaluates its investment in affiliates for other than temporary impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Events that could indicate impairment of an investment in affiliates include a significant decrease in long-term expected commodity prices, a significant increase in expected operating or capital costs, unfavorable exploration results or technical studies, a significant decrease in reserves, a loss of significant mineral claims or a change in the development plan or strategy for the project. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If the underlying assets are not recoverable, an impairment loss is measured and recorded based on the difference between the carrying amount of the investee and its estimated fair value which may be determined using a discounted cash flow model.

Accounts receivable

Accounts receivable	6 Months Ended
	May 31, 2020
Accounts receivable
Accounts receivable	3) Accounts receivable in thousands of dollars May 31, 2020 November 30, 2019 $ $ GST input tax credits 31 42 Recoverable payments — 222 Ambler Metals LLC 668 — Accounts receivable 699 264 The balance due from Ambler Metals LLC (see note 4 below) consists of services rendered by Trilogy and reimbursements for invoices paid by Trilogy on behalf of Ambler Metals LLC per a service agreement. The balance was paid in full by Ambler Metals LLC subsequent to the quarter end.

Equity method investment

Equity method investment	6 Months Ended
	May 31, 2020
Equity method investment
Equity method investment	4) Equity method investment (a) On February 11, 2020, the Company completed the formation of a 50/50 joint venture named Ambler Metals LLC with South32 Limited (“South32”). As part of the formation of the joint venture, Trilogy contributed all its assets associated with the UKMP, including the Arctic and Bornite Projects, while South32 contributed US$145 million, resulting in each party’s subsidiaries directly owning a 50% interest in Ambler Metals LLC. Ambler Metals LLC is an independently operated company jointly controlled by Trilogy and South32 through a four-member board, of which two members are currently appointed by Trilogy based on its 50% equity interest. All significant decisions related to the UKMP require the approval of both companies. We determined that Ambler Metals LLC is a VIE because it is expected to need additional funding from its owners for its significant activities. However, we concluded that we are not the primary beneficiary of Ambler Metals LLC as the power to direct its activities, through its board, is shared under the Ambler Metals LLC limited liability company agreement. As we have significant influence over Ambler Metals LLC through our representation on its board, we use the equity method of accounting for our investment in Ambler Metals LLC. Our investment in Ambler Metals LLC was initially measured at its fair value of $176 million upon recognition. Our maximum exposure to loss in this entity is limited to the carrying amount of our investment in Ambler Metals LLC, which totaled $176 million, as well as $668 thousand of amounts receivable per a service agreement. The following table summarizes the gain on recognition of the UKMP assets upon transfer to the Ambler Metals LLC joint venture on February 11, 2020. in thousands of dollars $ Fair value ascribed to Ambler Metals LLC interest 176,000 Less: carrying value of contributed /eliminated assets Mineral properties (30,587) Property, plant and equipment (618) Elimination of Fairbanks warehouse right of use asset (93) Elimination of prepaid State of Alaska mining claim fees (303) Add: Demobilization costs of drills 278 Cancellation of Fairbanks warehouse lease liability 93 Fair value of mineral properties purchase option 31,000 Gain on derecognition 175,770 (b) During the six-month period ended May 31, 2020, Trilogy recognized, based on its 50% ownership interest in Ambler Metals LLC, an equity loss equivalent to its pro rata share of Ambler Metals LLC's comprehensive loss of $1.48 million for the period between February 11, 2020 (date of joint venture formation) to May 31, 2020. The carrying value of Trilogy’s 50% investment in Ambler Metals LLC as at May 31, 2020 is summarized on the following table. in thousands of dollars $ February 11, 2020, fair value ascribed to Ambler Metals LLC interest 176,000 Share of loss on equity investment for the six-month period ended May 31, 2020 (739) May 31, 2020, equity method investment 175,261 (c) in thousands of dollars May 31, 2020 $ Current assets: Cash, deposits and prepaid expenses 86,490 Non - current assets: Property, equipment and mineral properties 31,359 Loan receivable from South32 57,876 Current liabilities: Accounts payable and accrued liabilities (917) Non - current liabilities: Lease obligation (79) Net assets 174,729 (d) in thousands of dollars February 11 - May 31, 2020 $ Amortization 50 Mineral properties expense 1,080 General and administrative expense 904 Interest income (557) Comprehensive loss 1,477

Plant and equipment

Plant and equipment	6 Months Ended
	May 31, 2020
Plant and equipment
Plant and equipment	5) Plant and equipment in thousands of dollars May 31, 2020 Accumulated Assets derecognized Cost amortization note 4(a) Net $ $ $ $ British Columbia, Canada Furniture and equipment 63 (36) — 27 Leasehold improvements 253 (43) — 210 Computer hardware and software 115 (113) — 2 Alaska, USA Machinery, and equipment 3,667 (3,049) (618) — Vehicles 348 (348) — — Computer hardware and software 4 (4) — — 4,450 (3,593) (618) 239 in thousands of dollars November 30, 2019 Accumulated Cost amortization Net $ $ $ British Columbia, Canada Furniture and equipment 63 (29) 34 Leasehold improvements 53 (17) 36 Computer hardware and software 115 (112) 3 Alaska, USA Machinery, and equipment 3,667 (3,026) 641 Vehicles 348 (348) — Computer hardware and software 4 (3) 1 4,250 (3,535) 715

Mineral properties and developm

Mineral properties and development costs	6 Months Ended
	May 31, 2020
Mineral properties and development costs
Mineral properties and development costs	6) Mineral properties and development costs in thousands of dollars November 30, 2019 Acquisition costs Assets May 31, 2020 reimbursable derecognized from Ambler note 4(a) Metals LLC $ $ $ Alaska, USA Ambler (a) 26,631 (44) (26,587) — Bornite (b) 4,000 — (4,000) — 30,631 (44) (30,587) — in thousands of dollars November 30, 2018 Acquisition costs November 30, 2019 $ $ $ Alaska, USA Ambler (a) 26,587 44 26,631 Bornite (b) 4,000 — 4,000 30,587 44 30,631 (a) Mineral properties expense The following table summarizes mineral properties expense for the noted periods. In thousands of dollars Three months ended Three months ended Six months ended Six months ended May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019 $ $ $ $ Alaska, USA Community — 146 137 264 Drilling — 173 — 173 Engineering — 303 723 624 Environmental — 136 99 271 Geochemistry and geophysics — 593 12 758 Land and permitting — 174 134 360 Project support — 778 249 1,004 Other income — — — (1) Wages and benefits — 603 191 988 — 2,906 1,545 4,441 No additional mineral properties expenses were incurred during the three-month period ended May 31, 2020, as on February 11, 2020, upon the formation of the joint venture with South 32, all mineral properties previously held by the Company were contributed to Ambler Metals LLC. The Company continues to fund the Arctic Project feasibility study, costs for which were $0.7 million since the formation of the joint venture on February 11, 2020. The table above is for comparison purposes for the respective periods. (b) Derecognition As part of the formation of the joint venture with South32 on February 11, 2020, Trilogy contributed all its assets associated with the UKMP, including the Arctic and Bornite projects. As a result, $0.62 million of machinery and equipment as well as $30.6 million of mineral properties related to the UKMP were derecognized in Trilogy on February 11, 2020.

Accounts payable and accrued li

Accounts payable and accrued liabilities	6 Months Ended
	May 31, 2020
Accounts payable and accrued liabilities
Accounts payable and accrued liabilities	7) Accounts payable and accrued liabilities in thousands of dollars May 31, 2020 November 30, 2019 $ $ Trade accounts payable 232 902 Accrued liabilities 214 721 Accrued salaries and vacation 93 731 Accounts payable and accrued liabilities 539 2,354

Leases

Leases	6 Months Ended
	May 31, 2020
Leases
Leases	8) Leases (a) Right-of-use asset in thousands of dollars $ ASC 842 transition as at December 1, 2019 681 Amortization (86) Lease accretion 27 Derecognition of Fairbanks warehouse lease (93) 529 The pre-transition rent deposit of $114 thousand was transferred to the Right-of-use asset upon adoption of ASC 842 on December 1, 2019 and is included in the opening balance of $681 thousand. (b) Lease liabilities The Company’s lease arrangements primarily consist of an operating lease for our office space ending in June 2024. There are no extension options. Total lease expense recorded within general and administrative expenses was comprised of the following components: in thousands of dollars Six months ended May 31, 2020 $ Operating lease costs 86 Variable lease costs 64 Total lease expense 150 Variable lease costs consist primarily of the Company’s portion of operating costs associated with the office space lease as the Company elected to apply the practical expedient not to separate lease and non-lease components. As of May 31, 2020, the weighted-average remaining lease term was 4.1 years and the weighted-average discount rate is 8%. Significant judgment was used in the determination of the incremental borrowing rate which included estimating the Company’s credit rating. Supplemental cash and non-cash information relating to our leases during the six months ended May 31, 2020 are as follows: · Cash paid for amounts included in the measurement of lease liabilities was $96,842. · No cash was paid upon termination of a lease for office and warehouse space and reassignment to Ambler Metals LLC that resulted in the derecognition of the right-of-use asset of $92,974 and the operating lease liability of $93,006. Future minimum payments relating to the lease recognized in our balance sheet as of May 31, 2020 are as follows: in thousands of dollars May 31, 2020 Fiscal year $ 2020 90 2021 184 2022 173 2023 211 2024 116 Total undiscounted lease payments 774 Effect of discounting (175) Present value of lease payments recognized as lease liability 599

Share capital

Share capital	6 Months Ended
	May 31, 2020
Share capital
Share capital	9) Share capital Authorized: unlimited common shares, no par value in thousands of dollars, except share amounts Number of shares Ascribed value $ November 30, 2018 131,585,612 164,069 Exercise of options 1,725,776 1,123 Restricted Share Units 412,501 424 Deferred Share Units 182,132 189 Exercise of warrants 6,521,740 12,166 November 30, 2019 140,427,761 177,971 Exercise of options 82,624 38 Restricted Share Units 412,501 642 May 31, 2020, issued and outstanding 140,922,886 178,651 On April 30, 2012, under the NovaGold Arrangement, Trilogy committed to issue common shares to satisfy holders of NovaGold deferred share units (“NovaGold DSUs”) on record as of the close of business April 27, 2012. When vested, Trilogy committed to deliver one common share to the holder for every six shares of NovaGold the holder is entitled to receive, rounded down to the nearest whole number. As of May 31, 2020, 11,927 NovaGold DSUs remained outstanding representing a right to receive 1,988 common shares in Trilogy, which will settle upon certain directors retiring from NovaGold’s board. (a) Stock options During the period ended May 31, 2020, the Company granted 2,325,000 options (2019 - 2,527,500 options) at a weighted-average exercise price of CAD$2.93 (2019 - CAD$2.96) to employees, consultants and directors exercisable for a period of five years with various vesting terms from immediate vesting to vesting over a two-year period. The weighted-average fair value attributable to options granted in the period was $0.96 (2019 - $1.08). For the period ended May 31, 2020, Trilogy recognized a stock-based compensation charge of $1.58 million (2019 – $1.94 million) for options granted to directors, employees and service providers, net of estimated forfeitures. The fair value of the stock options recognized in the period has been estimated using the Black-Scholes option pricing model. Assumptions used in the pricing model for the period are as provided below. May 31, 2020 Risk-free interest rates 1.50 % Exercise price CAD$3.07 Expected life 3.0 years Expected volatility 63.3 % Expected dividends Nil As of May 31, 2020, there were 1,453,338 non-vested options outstanding with a weighted average exercise price of $2.15; the non-vested stock option expense not yet recognized was $0.71 million. This expense is expected to be recognized over the next two years. A summary of the Company’s stock option plan and changes during the period ended May 31, 2020 is as follows: May 31, 2020 Weighted average exercise price Number of options $ Balance – beginning of the period 9,205,600 1.05 Granted 2,325,000 2.13 Exercised (151,667) 0.56 Forfeited (260,000) 2.15 Balance – end of period 11,118,933 1.25 The following table summarizes information about the stock options outstanding at May 31, 2020. Outstanding Exercisable Unvested Weighted Weighted Number of Weighted average Number of average Number of outstanding average years exercise price exercisable exercise price unvested Range of price options to expiry $ options $ options $0.32 to $0.50 3,901,433 0.81 0.40 3,901,433 0.81 — $0.51 to $1.00 1,845,000 2.48 0.73 1,845,000 2.48 — $1.01 to $1.50 225,000 2.87 1.29 175,000 2.83 50,000 $1.51 to $2.00 915,000 4.41 1.72 898,333 4.43 16,667 $2.01 to $2.54 4,232,500 4.03 2.17 2,895,829 3.92 1,336,671 11,118,933 2.65 1.25 9,715,595 2.43 1,403,338 The aggregate intrinsic value of vested share options (the market value less the exercise price) at May 31, 2020 was $8.3 million (2019 - $17.6 million) and the aggregate intrinsic value of exercised options for the three months ended May 31, 2020 was $0.18 million (2019 - $0.30 million). (b) Restricted Share Units and Deferred Share Units The Company has a Restricted Share Unit Plan (“RSU Plan”) and a Non-Executive Director Deferred Share Unit Plan (“DSU Plan”) to provide long-term incentives to employees, officers and directors. Awards under the RSU Plan and DSU Plan may be settled in cash and/or common shares of the Company at the Company’s election with each restricted share unit (“RSU”) and deferred share unit (“DSU”) entitling the holder to receive one common share of the Company or equivalent value. All units are accounted for as equity-settled awards. A summary of the Company’s unit plans and changes during the period ended May 31, 2020 is as follows: Number of RSUs Number of DSUs Balance – beginning of the period 212,501 1,137,488 Granted 200,000 44,903 Vested/paid (412,501) — Balance – end of period — 1,182,391 For the period ended May 31, 2020, Trilogy recognized a stock-based compensation charge of $0.39 million (2019- $0.66 million), net of estimated forfeitures. The 200,000 RSUs granted and fully vested during the period were settled on April 16, 2020 through the issuance of 200,000 common shares. The 225,000 RSUs granted for the annual incentive payout for the 2018 fiscal year vested half on the grant date and half on the first anniversary of the grant date. RSUs vesting in December 2019 were settled on December 17, 2019 through the issuance of 212,501 common shares.

Financial instruments

Financial instruments	6 Months Ended
	May 31, 2020
Financial instruments
Financial instruments	10) Financial instruments The Company is exposed to a variety of risks arising from financial instruments. These risks and management’s objectives, policies and procedures for managing these risks are disclosed as follows. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, deposits, and accounts payable and accrued liabilities. The fair value of the Company’s financial instruments approximates their carrying value due to the short-term nature of their maturity. The Company’s financial instruments initially measured at fair value and then held at amortized cost include cash and cash equivalents, accounts receivable, deposits, and accounts payable and accrued liabilities. Financial risk management The Company’s activities expose it to certain financial risks, including currency risk, credit risk, liquidity risk, interest risk and price risk. (a) Currency risk Currency risk is the risk of a fluctuation in financial asset and liability settlement amounts due to a change in foreign exchange rates. The Company operates in the United States and Canada. The Company’s exposure to currency risk at May 31, 2020 is limited to the Canadian dollar balances consisting of cash of CDN$87,000, accounts receivable of CDN$42,000 and accounts payable of CDN$347,000. Based on a 10% change in the US-Canadian exchange rate, assuming all other variables remain constant, the Company’s net loss would change by approximately $16,000. (b) Credit risk Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company holds cash and cash equivalents with Canadian Chartered financial institutions. The Company’s accounts receivable consists of Canadian Goods and Services Tax receivable from the Federal Government of Canada and other receivables for recoverable expenses. The Company’s exposure to credit risk is equal to the balance of cash and cash equivalents and accounts receivable as recorded in the financial statements. (c) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulties raising funds to meet its financial obligations as they fall due. The Company is in the exploration stage and does not have cash inflows from operations; therefore, the Company manages liquidity risk through the management of its capital structure and financial leverage. Contractually obligated cash flow requirements as at May 31, 2020 are as follows: in thousands of dollars Total < 1 Year 1–2 Years 2–5 Years Thereafter $ $ $ $ $ Accounts payable and accrued liabilities 539 539 — — — 539 539 — — — (d) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk with respect to interest earned on cash and cash equivalents. Based on balances as at May 31, 2020, a 1% change in interest rates would result in a change in net loss of $0.1 million, assuming all other variables remain constant.

Commitment

Commitment	6 Months Ended
	May 31, 2020
Commitment
Commitment	11) Commitment The Company has commitments with respect to an office lease requiring future minimum lease payments as summarized in note 8(b) above.

Subsequent events

Subsequent events	6 Months Ended
	May 31, 2020
Subsequent event
Subsequent event	12) Subsequent event Subsequent to the end of the second quarter, on June 1, 2020, the newly appointed CEO was granted a one-time stock option grant, per his employment agreement, of 1.6 million stock options vesting equally in thirds on the grant date, the first anniversary of the grant date, and the second anniversary of the grant date. In addition to this grant, the new CEO was also granted 170,000 stock options in lieu of salary for the June 1, 2020 to September 30, 2020 employment period. These options fully vest on September 30, 2020.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	6 Months Ended
	May 31, 2020
Summary of significant accounting policies
Basis of presentation	Basis of presentation These interim consolidated financial statements have been prepared using accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of Trilogy and its wholly owned subsidiary, NovaCopper US Inc. (dba “Trilogy Metals US”). All significant intercompany transactions are eliminated on consolidation. For variable interest entities (“VIEs”) where Trilogy is not the primary beneficiary, we use the equity method of accounting. All figures are in United States dollars unless otherwise noted. References to CAD$ refer to amounts in Canadian dollars. The unaudited interim consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s financial position as of May 31, 2020 and our results of operations and cash flows for the six months ended May 31, 2020 and May 31, 2019. The results of operations for the six months ended May 31, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending November 30, 2020. As these interim consolidated financial statements do not contain all of the disclosures required by U.S. GAAP for annual financial statements, these unaudited interim consolidated financial statements should be read in conjunction with the annual financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2019, filed with the U.S. Securities and Exchange Commission (“SEC”) and Canadian securities regulatory authorities on February 13, 2020. These interim consolidated financial statements were approved by the Company’s Audit Committee on behalf of the Board of Directors for issue on July 7, 2020.
Accounting standards adopted	Accounting standards adopted Leases In February 2016, the FASB issued new accounting requirements for accounting for, presentation of, and classification of leases (“ASU 2016-02”) which, together with subsequent amendments, is included in ASC 842, Leases. ASC 842 became effective for the Company as of December 1, 2019. The Company adopted ASC 842 using the modified retrospective transition method by applying the transition provision and recording our cumulative adjustment to opening deficit at the beginning of the period of adoption on December 1, 2019, rather than at the beginning of the comparative period presented. Therefore, in the comparative periods, we continue to apply the legacy guidance in ASC 840, including its disclosure requirements. We elected to apply all of the transition practical expedients available, including: · the package of three practical expedients to (1) not reassess whether any expired or existing contracts are or contain leases, (2) not reassess the lease classification for any expired or existing leases, and (3) not reassess initial direct costs for any existing lease; · the hindsight practical expedient to use hindsight when determining lease term and assessing impairment of right-of-use assets, if any; and · the easements practical expedient to continue applying our current policy for accounting for any land easements expired before or existing as of December 1, 2019. In addition, we elected to apply the short-term lease recognition exemption and elected to apply the practical expedient to not separate lease and non-lease components for all applicable leases on transition. The adoption of this new standard resulted in the recognition of right of use assets and lease liabilities of $786,000 as at December 1, 2019.
New accounting policy	New accounting policy Investment in affiliates Investments in unconsolidated ventures over which the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method and include the Company’s investment in the Ambler Metals project. We identified Ambler Metals LLC as a VIE as the entity is dependent on funding from its owners. All funding, ownership, voting rights and power to exercise control is shared equally on a 50/50 basis between the owners of the VIE. Therefore, the Company has determined that it is not the primary beneficiary of the VIE. The Company’s maximum exposure to loss is its investment in Ambler Metals LLC. Ambler Metals LLC is a non-publicly traded equity investee holding exploration and development projects. The Company reviews and evaluates its investment in affiliates for other than temporary impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Events that could indicate impairment of an investment in affiliates include a significant decrease in long-term expected commodity prices, a significant increase in expected operating or capital costs, unfavorable exploration results or technical studies, a significant decrease in reserves, a loss of significant mineral claims or a change in the development plan or strategy for the project. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If the underlying assets are not recoverable, an impairment loss is measured and recorded based on the difference between the carrying amount of the investee and its estimated fair value which may be determined using a discounted cash flow model.

Accounts receivable (Tables)

Accounts receivable (Tables)	6 Months Ended
	May 31, 2020
Accounts receivable
Schedule of account receivable	in thousands of dollars May 31, 2020 November 30, 2019 $ $ GST input tax credits 31 42 Recoverable payments — 222 Ambler Metals LLC 668 — Accounts receivable 699 264

Equity method investment (Table

Equity method investment (Tables)	6 Months Ended
	May 31, 2020
Equity method investment
Schedule of gain on transfer of assets	in thousands of dollars $ Fair value ascribed to Ambler Metals LLC interest 176,000 Less: carrying value of contributed /eliminated assets Mineral properties (30,587) Property, plant and equipment (618) Elimination of Fairbanks warehouse right of use asset (93) Elimination of prepaid State of Alaska mining claim fees (303) Add: Demobilization costs of drills 278 Cancellation of Fairbanks warehouse lease liability 93 Fair value of mineral properties purchase option 31,000 Gain on derecognition 175,770
Schedule of equity investment	The carrying value of Trilogy’s 50% investment in Ambler Metals LLC as at May 31, 2020 is summarized on the following table. in thousands of dollars $ February 11, 2020, fair value ascribed to Ambler Metals LLC interest 176,000 Share of loss on equity investment for the six-month period ended May 31, 2020 (739) May 31, 2020, equity method investment 175,261 (c) in thousands of dollars May 31, 2020 $ Current assets: Cash, deposits and prepaid expenses 86,490 Non - current assets: Property, equipment and mineral properties 31,359 Loan receivable from South32 57,876 Current liabilities: Accounts payable and accrued liabilities (917) Non - current liabilities: Lease obligation (79) Net assets 174,729 (d) in thousands of dollars February 11 - May 31, 2020 $ Amortization 50 Mineral properties expense 1,080 General and administrative expense 904 Interest income (557) Comprehensive loss 1,477

Plant and equipment (Tables)

Plant and equipment (Tables)	6 Months Ended
	May 31, 2020
Plant and equipment
Schedule of plant and equipment	in thousands of dollars May 31, 2020 Accumulated Assets derecognized Cost amortization note 4(a) Net $ $ $ $ British Columbia, Canada Furniture and equipment 63 (36) — 27 Leasehold improvements 253 (43) — 210 Computer hardware and software 115 (113) — 2 Alaska, USA Machinery, and equipment 3,667 (3,049) (618) — Vehicles 348 (348) — — Computer hardware and software 4 (4) — — 4,450 (3,593) (618) 239 in thousands of dollars November 30, 2019 Accumulated Cost amortization Net $ $ $ British Columbia, Canada Furniture and equipment 63 (29) 34 Leasehold improvements 53 (17) 36 Computer hardware and software 115 (112) 3 Alaska, USA Machinery, and equipment 3,667 (3,026) 641 Vehicles 348 (348) — Computer hardware and software 4 (3) 1 4,250 (3,535) 715

Mineral properties and develo_2

Mineral properties and development costs (Tables)	6 Months Ended
	May 31, 2020
Mineral properties and development costs
Schedule of mineral properties and development costs	in thousands of dollars November 30, 2019 Acquisition costs Assets May 31, 2020 reimbursable derecognized from Ambler note 4(a) Metals LLC $ $ $ Alaska, USA Ambler (a) 26,631 (44) (26,587) — Bornite (b) 4,000 — (4,000) — 30,631 (44) (30,587) — in thousands of dollars November 30, 2018 Acquisition costs November 30, 2019 $ $ $ Alaska, USA Ambler (a) 26,587 44 26,631 Bornite (b) 4,000 — 4,000 30,587 44 30,631
Schedule of mineral property expenses	In thousands of dollars Three months ended Three months ended Six months ended Six months ended May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019 $ $ $ $ Alaska, USA Community — 146 137 264 Drilling — 173 — 173 Engineering — 303 723 624 Environmental — 136 99 271 Geochemistry and geophysics — 593 12 758 Land and permitting — 174 134 360 Project support — 778 249 1,004 Other income — — — (1) Wages and benefits — 603 191 988 — 2,906 1,545 4,441

Accounts payable and accrued _2

Accounts payable and accrued liabilities (Tables)	6 Months Ended
	May 31, 2020
Accounts payable and accrued liabilities
Schedule of accounts payable and accrued liabilities	in thousands of dollars May 31, 2020 November 30, 2019 $ $ Trade accounts payable 232 902 Accrued liabilities 214 721 Accrued salaries and vacation 93 731 Accounts payable and accrued liabilities 539 2,354

Leases (Tables)

Leases (Tables)	6 Months Ended
	May 31, 2020
Leases
Schedule of right-of-use asset	in thousands of dollars $ ASC 842 transition as at December 1, 2019 681 Amortization (86) Lease accretion 27 Derecognition of Fairbanks warehouse lease (93) 529
Schedule of lease expenses	in thousands of dollars Six months ended May 31, 2020 $ Operating lease costs 86 Variable lease costs 64 Total lease expense 150
Schedule of future minimum payments	in thousands of dollars May 31, 2020 Fiscal year $ 2020 90 2021 184 2022 173 2023 211 2024 116 Total undiscounted lease payments 774 Effect of discounting (175) Present value of lease payments recognized as lease liability 599

Share capital (Tables)

Share capital (Tables)	6 Months Ended
	May 31, 2020
Share capital
Schedule of common stock outstanding roll forward	in thousands of dollars, except share amounts Number of shares Ascribed value $ November 30, 2018 131,585,612 164,069 Exercise of options 1,725,776 1,123 Restricted Share Units 412,501 424 Deferred Share Units 182,132 189 Exercise of warrants 6,521,740 12,166 November 30, 2019 140,427,761 177,971 Exercise of options 82,624 38 Restricted Share Units 412,501 642 May 31, 2020, issued and outstanding 140,922,886 178,651
Schedule of assumptions used in the pricing model	May 31, 2020 Risk-free interest rates 1.50 % Exercise price CAD$3.07 Expected life 3.0 years Expected volatility 63.3 % Expected dividends Nil
Summary of the company's stock option plan	May 31, 2020 Weighted average exercise price Number of options $ Balance – beginning of the period 9,205,600 1.05 Granted 2,325,000 2.13 Exercised (151,667) 0.56 Forfeited (260,000) 2.15 Balance – end of period 11,118,933 1.25
Summary of information about stock options	Outstanding Exercisable Unvested Weighted Weighted Number of Weighted average Number of average Number of outstanding average years exercise price exercisable exercise price unvested Range of price options to expiry $ options $ options $0.32 to $0.50 3,901,433 0.81 0.40 3,901,433 0.81 — $0.51 to $1.00 1,845,000 2.48 0.73 1,845,000 2.48 — $1.01 to $1.50 225,000 2.87 1.29 175,000 2.83 50,000 $1.51 to $2.00 915,000 4.41 1.72 898,333 4.43 16,667 $2.01 to $2.54 4,232,500 4.03 2.17 2,895,829 3.92 1,336,671 11,118,933 2.65 1.25 9,715,595 2.43 1,403,338
Schedule of restricted share Units and deferred share units plans	Number of RSUs Number of DSUs Balance – beginning of the period 212,501 1,137,488 Granted 200,000 44,903 Vested/paid (412,501) — Balance – end of period — 1,182,391

Financial instruments (Tables)

Financial instruments (Tables)	6 Months Ended
	May 31, 2020
Financial instruments
Schedule of contractually obligated cash flow requirements	in thousands of dollars Total < 1 Year 1–2 Years 2–5 Years Thereafter $ $ $ $ $ Accounts payable and accrued liabilities 539 539 — — — 539 539 — — —

Summary of significant accoun_3

Summary of significant accounting policies (Narrative) (Details) - USD ($)	6 Months Ended
	May 31, 2020	Dec. 01, 2019
Likelihood Of Tax Benefit Being Realized Upon Settlement	50.00%
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	true
Lease, Practical Expedient, Land Easement [true false]	true
Operating Lease, Right-of-Use Asset	$ 529,000	$ 681,000
Operating Lease, Liability	$ 93,006
ASU 2016-02 [Member]
Operating Lease, Right-of-Use Asset		681,000
ASU 2016-02 [Member] | Restatement Adjustment [Member]
Operating Lease, Right-of-Use Asset		786,000
Operating Lease, Liability		$ 786,000

Accounts receivable (Details)

Accounts receivable (Details) - USD ($) $ in Thousands	May 31, 2020	Nov. 30, 2019
Accounts receivable
GST input tax credits	$ 31	$ 42
Recoverable Payments		222
Ambler Metals LLC	668
Accounts Receivable, Net, Current, Total	$ 699	$ 264

Equity method investment (Detai

Equity method investment (Details) - USD ($) $ in Thousands	Feb. 11, 2020	May 31, 2020	Feb. 10, 2020
Table summarizes the gain on recognition of the UKMP assets upon transfer to the Ambler Metals joint venture
Fair value ascribed to Ambler Metals LLC interest		$ 175,261
Less: carrying value of contributed /eliminated assets
Property, plant and equipment		(618)
Add:
Gain on derecognition		175,770
Ambler Metals LLC
Table summarizes the gain on recognition of the UKMP assets upon transfer to the Ambler Metals joint venture
Fair value ascribed to Ambler Metals LLC interest	$ 176,000	175,261	$ 176,000
Less: carrying value of contributed /eliminated assets
Mineral properties	(30,587)
Property, plant and equipment	(618)
Elimination of Fairbanks warehouse right of use asset	(93)
Elimination of prepaid State of Alaska mining claim fees	(303)
Add:
Demobilization costs of drills	278
Cancellation of Fairbanks warehouse lease liability	93
Fair value of mineral properties purchase option	31,000
Gain on derecognition	$ 175,770
South32
Schedule of Equity Method Investments [Line Items]
Equity method investment service agreement		668,000
South32 | Ambler Metals LLC
Schedule of Equity Method Investments [Line Items]
Equity method investment fair value		$ 176,000
Upper Kobuk Mineral Projects | South32
Schedule of Equity Method Investments [Line Items]
Percentage of ownership	50.00%
Upper Kobuk Mineral Projects | South32 | Ambler Metals LLC
Schedule of Equity Method Investments [Line Items]
Equity method investment contribution	$ 145,000

Equity method investment - Fina

Equity method investment - Financail information (Details) - USD ($) $ in Thousands	3 Months Ended				4 Months Ended	6 Months Ended
	May 31, 2020	Feb. 29, 2020	May 31, 2019	Feb. 28, 2019	May 31, 2020	May 31, 2020	May 31, 2019
Schedule of Equity Method Investments [Line Items]
Comprehensive loss	$ (3,002)	$ 171,179	$ (4,509)	$ (4,336)		$ 168,177	$ (8,845)
Summarizes on Equity Method Investment
Share of loss on equity investment for the six-month period ended May 31, 2020	(561)					(739)
May 31, 2020, equity method investment	175,261				$ 175,261	175,261
Summarized Financial Information, Income Statement
Amortization						58	75
General and administrative expense	433		$ 436			1,084	$ 928
Ambler Metals LLC
Schedule of Equity Method Investments [Line Items]
Comprehensive loss					1,480
Summarizes on Equity Method Investment
February 11, 2020, fair value ascribed to Ambler Metals LLC interest					176,000
Share of loss on equity investment for the six-month period ended May 31, 2020					(739)
May 31, 2020, equity method investment	175,261				175,261	175,261
Summarized Financial Information, Balance Sheet
Current assets: Cash, deposits and prepaid expenses	86,490				86,490	86,490
Non - current assets: Property, equipment and mineral properties	31,359				31,359	31,359
Loan receivable from South32	57,876				57,876	57,876
Current liabilities: Accounts payable and accrued liabilities	(917)				(917)	(917)
Non - current liabilities: Lease obligation	(79)				(79)	(79)
Net assets	$ 174,729				174,729	$ 174,729
Summarized Financial Information, Income Statement
Amortization					50
Mineral properties expense					1,080
General and administrative expense					904
Interest income					(557)
Comprehensive loss					$ 1,477

Plant and equipment (Details)

Plant and equipment (Details) - USD ($) $ in Thousands	May 31, 2020	Nov. 30, 2019
Cost	$ 4,450	$ 4,250
Accumulated amortization	(3,593)	(3,535)
Assets derecognized	(618)
Net	239	715
Furniture and equipment [Member] | British Columbia, Canada [Member]
Cost	63	63
Accumulated amortization	(36)	(29)
Net	27	34
Leasehold improvements [Member] | British Columbia, Canada [Member]
Cost	253	53
Accumulated amortization	(43)	(17)
Net	210	36
Machinery and equipment[Member] | Alaska, USA [Member]
Cost	3,667	3,667
Accumulated amortization	(3,049)	(3,026)
Assets derecognized	(618)
Net		641
Vehicles [Member] | Alaska, USA [Member]
Cost	348	348
Accumulated amortization	(348)	(348)
Computer hardware and software [Member] | British Columbia, Canada [Member]
Cost	115	115
Accumulated amortization	(113)	(112)
Net	2	3
Computer hardware and software [Member] | Alaska, USA [Member]
Cost	4	4
Accumulated amortization	$ (4)	(3)
Net		$ 1

Mineral properties and develo_3

Mineral properties and development costs - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended	4 Months Ended	6 Months Ended
	May 31, 2020	May 31, 2020	May 31, 2020	Feb. 11, 2020
Feasibility study	$ 742		$ 742
Derecognition on machinery and equipment	618	$ 618	$ 618
South32
Payments for mineral property	$ 0
Feasibility study		$ 700
Upper Kobuk Mineral Projects
Derecognition on machinery and equipment				$ 620
Derecognition of mineral properties				$ 30,600

Mineral Properties and develo_4

Mineral Properties and development costs (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	May 31, 2020	Nov. 30, 2019	Nov. 30, 2018
Mineral properties and development costs		$ 30,631
Alaska, USA [Member]
Reimbursable Acquisition Costs	$ (44)
Acquisition costs		44
Mineral properties and development costs		30,631	$ 30,587
Assets derecognized	(30,587)
Ambler Properties [Member] | Alaska, USA [Member]
Reimbursable Acquisition Costs	(44)
Acquisition costs		44
Mineral properties and development costs		26,631	26,587
Assets derecognized	(26,587)
Bornite Properties [Member] | Alaska, USA [Member]
Mineral properties and development costs		$ 4,000	$ 4,000
Assets derecognized	$ (4,000)

Mineral properties and develo_5

Mineral properties and development costs - Mineral property expenses (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	May 31, 2019	May 31, 2020	May 31, 2019
Mineral property expense	$ 2,906	$ 1,545	$ 4,441
Alaska, USA [Member]
Community	146	137	264
Drilling	173		173
Engineering	303	723	624
Environmental	136	99	271
Geochemistry and geophysics	593	12	758
Land and permitting	174	134	360
Project support	778	249	1,004
Other income			(1)
Wages and benefits	603	191	988
Mineral property expense	$ 2,906	$ 1,545	$ 4,441

Accounts payable and accrued _3

Accounts payable and accrued liabilities (Details) - USD ($) $ in Thousands	May 31, 2020	Nov. 30, 2019
Accounts payable and accrued liabilities
Trade accounts payable	$ 232	$ 902
Accrued liabilities	214	721
Accrued salaries and vacation	93	731
Accounts payable and accrued liabilities	$ 539	$ 2,354

Leases - Additional information

Leases - Additional information (Details) - USD ($)	6 Months Ended
	May 31, 2020	May 31, 2020	Dec. 01, 2019	Nov. 30, 2019
Rent deposit				$ 114,000
Right-of-use asset	$ 529,000	$ 529,000	$ 681,000
Weighted-average remaining lease term	4 years 1 month 6 days	4 years 1 month 6 days
Weighted-average discount rate	8.00%	8.00%
Cash paid for amounts included in the measurement of lease liabilities		$ 97,000
Derecognition of right of use asset	$ (93,000)	92,974
Operating Lease, Liability	$ 93,006	$ 93,006
ASU 2016-02 [Member]
Right-of-use asset			$ 681,000

Leases - Right of use asset (De

Leases - Right of use asset (Details) - USD ($)	6 Months Ended
	May 31, 2020	May 31, 2020
Leases
ASC 842 transition as at December 1, 2019	$ 681,000
Amortization	(86,000)	$ (86,000)
Lease accretion	27,000
Derecognition of Fairbanks warehouse lease	(93,000)	92,974
Right of use asset as at February 29, 2020	$ 529,000	$ 529,000

Leases - Lease liabilities (Det

Leases - Lease liabilities (Details) $ in Thousands	6 Months Ended
	May 31, 2020USD ($)
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 86
Variable lease costs	64
Total lease expense	$ 150
Office Space [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Existence of Option to Extend [true false]	false

Leases - Future minimum payment

Leases - Future minimum payments (Details) $ in Thousands	May 31, 2020USD ($)
Future minimum payments
2020	$ 90
2021	184
2022	173
2023	211
2024	116
Total undiscounted lease payments	774
Effect of discounting	(175)
Present value of lease payments recognized as lease liability	$ 599

Share capital - Additional info

Share capital - Additional information (Details) $ / shares in Units, $ in Thousands	Apr. 16, 2020shares	Feb. 29, 2020shares	May 31, 2020USD ($)$ / sharesshares	Feb. 29, 2020USD ($)	May 31, 2019USD ($)	Feb. 28, 2019USD ($)	May 31, 2020USD ($)$ / shares$ / sharesshares	May 31, 2020USD ($)$ / sharesshares	May 31, 2019USD ($)$ / shares	May 31, 2019USD ($)$ / sharesshares	Nov. 30, 2019USD ($)	Nov. 30, 2018shares
Stock options granted, weighted average exercise price | $ / shares							$ 2.93		$ 2.96
Stock options granted, weighted average fair value | $ / shares								$ 0.96		$ 1.08
Stock-based compensation | $			$ (770)	$ (1,196)	$ (664)	$ (1,939)
Non-vested stock options outstanding			11,118,933				11,118,933	11,118,933
Weighted average exercise price options outstanding | $ / shares			$ 1.25				$ 1.25	$ 1.25
Aggregate intrinsic value, vested options | $			$ 8,300		$ 17,600		$ 8,300	$ 8,300	$ 17,600	$ 17,600
Aggregate intrinsic value, options exercised | $								180		$ 300
Stock option expense not yet recognized | $			$ 710				$ 710	$ 710
Period for recognition of stock compensation expense								2 years
Minimum [Member]
Vesting period										2 years
Nonvested Options [Member]
Non-vested stock options outstanding			1,453,338				1,453,338	1,453,338
Weighted average exercise price options outstanding | $ / shares			$ 2.15				$ 2.15	$ 2.15
Number of DSU's [Member]
Common stock committed for issuance			11,927				11,927	11,927
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			1,988				1,988	1,988
Stock Compensation Plan [Member]
Stock-based compensation | $								$ 390		$ 660
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	200,000	212,501
Granted units								200,000				225,000
New Employees [Member]
Stock options granted								2,325,000		2,527,500
Directors, Employees and Services Providers [Member]
Stock-based compensation | $								$ 1,580			$ 1,940

Share capital - Common shares i

Share capital - Common shares issued and outstanding (Details) - Share capital [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	May 31, 2020	Nov. 30, 2019
Number of shares	140,427,761	131,585,612
Ascribed value	$ 177,971	$ 164,069
Exercise of options (shares)	82,624	1,725,776
Exercise of options	$ 38	$ 1,123
Restricted share units (Shares)	412,501	412,501
Restricted share units	$ 642	$ 424
Deferred share units (Shares)		182,132
Deferred share units		189,000
Exercise of warrants		$ 12,166
Exercise of warrants (Shares)		6,521,740
Number of shares	140,922,886	140,427,761
Ascribed value	$ 178,651	$ 177,971

Share capital - Assumptions use

Share capital - Assumptions used in the pricing model (Details)	6 Months Ended
	May 31, 2020$ / shares
Share capital
Risk-free interest rates	1.50%
Exercise price	$ 3.07
Expected life	3 years
Expected volatility	63.30%
Expected dividends

Share capital - Stock options p

Share capital - Stock options plans and changes (Details)	6 Months Ended
	May 31, 2020$ / sharesshares	May 31, 2020$ / sharesshares	May 31, 2019$ / shares
Weighted average exercise price, Granted	$ 2.93		$ 2.96
Balance - End of Period, Number of stock options | shares	11,118,933	11,118,933
Balance - End of Period, Weighted average exercise price		$ 1.25
Stock option [Member]
Balance - beginning of the year, Number of stock Options | shares	9,205,600	9,205,600
Balance - beginning of the year, Weighted average exercise price		$ 1.05
Number of options, Granted | shares	2,325,000	2,325,000
Weighted average exercise price, Granted		$ 2.13
Number of options, Exercised | shares	(151,667)	(151,667)
Weighted average exercise price, Exercised		$ 0.56
Number of options, Forfeited | shares	(260,000)	(260,000)
Weighted average exercise price, Forfeited		$ 2.15
Balance - End of Period, Number of stock options | shares	11,118,933	11,118,933
Balance - End of Period, Weighted average exercise price		$ 1.25

Share capital - Stock options o

Share capital - Stock options outstanding (Details)	6 Months Ended
	May 31, 2020$ / sharesshares
Number of outstanding options | shares	11,118,933
Weighted average years to expiry	2 years 7 months 24 days
Weighted average exercise price options outstanding	$ 1.25
Number of exercisable options | shares	9,715,595
Weighted average exercise price exercisable	$ 2.43
Number of unvested options | shares	1,403,338
Range 1 [Member]
Exercise price lower range limit	$ 0.32
Exercise price upper range limit	$ 0.50
Number of outstanding options | shares	3,901,433
Weighted average years to expiry	9 months 22 days
Weighted average exercise price options outstanding	$ 0.40
Number of exercisable options | shares	3,901,433
Weighted average exercise price exercisable	$ 0.81
Number of unvested options | shares	0
Range 2 [Member]
Exercise price lower range limit	$ 0.51
Exercise price upper range limit	$ 1
Number of outstanding options | shares	1,845,000
Weighted average years to expiry	2 years 5 months 23 days
Weighted average exercise price options outstanding	$ 0.73
Number of exercisable options | shares	1,845,000
Weighted average exercise price exercisable	$ 2.48
Number of unvested options | shares	0
Range 3 [Member]
Exercise price lower range limit	$ 1.01
Exercise price upper range limit	$ 1.50
Number of outstanding options | shares	225,000
Weighted average years to expiry	2 years 10 months 13 days
Weighted average exercise price options outstanding	$ 1.29
Number of exercisable options | shares	175,000
Weighted average exercise price exercisable	$ 2.83
Number of unvested options | shares	50,000
Range 4 [Member]
Exercise price lower range limit	$ 1.51
Exercise price upper range limit	$ 2
Number of outstanding options | shares	915,000
Weighted average years to expiry	4 years 4 months 28 days
Weighted average exercise price options outstanding	$ 1.72
Number of exercisable options | shares	898,333
Weighted average exercise price exercisable	$ 4.43
Number of unvested options | shares	16,667
Range 5 [Member]
Exercise price lower range limit	$ 2.01
Exercise price upper range limit	$ 2.54
Number of outstanding options | shares	4,232,500
Weighted average years to expiry	4 years 11 days
Weighted average exercise price options outstanding	$ 2.17
Number of exercisable options | shares	2,895,829
Weighted average exercise price exercisable	$ 3.92
Number of unvested options | shares	1,336,671

Share capital - Stock units pla

Share capital - Stock units plans and changes (Details)	6 Months Ended
	May 31, 2020shares
Number of RSU's [Member]
Balance - beginning of the year	212,501
Granted	200,000
Vested/paid	412,501
Number of DSU's [Member]
Balance - beginning of the year	1,137,488
Granted	44,903
Balance - end of period	1,182,391

Financial instruments - Additio

Financial instruments - Additional information (Details)	6 Months Ended
	May 31, 2020USD ($)	May 31, 2020CAD ($)	May 31, 2020USD ($)	Nov. 30, 2019USD ($)
Accounts receivable			$ 699,000	$ 264,000
Interest rate loss	$ 100,000
Canadian Limit Due to Currency Risk [Member]
Cash		$ 87,000
Accounts receivable		42,000
Accounts payable		$ 347,000
Change in foreign exchange rate		10.00%	10.00%
Foreign exchange (gain) loss	$ 16,000
Change in interest rate	1.00%

Financial instruments - Contrac

Financial instruments - Contractually obligated cash flow requirements (Details) $ in Thousands	May 31, 2020USD ($)
Total	$ 539
Within 1 Year	539
1 - 2 Years	0
2 - 5 Years	0
Thereafter	0
Accounts payable and accrued liabilities [Member]
Total	539
Within 1 Year	539
1 - 2 Years	0
2 - 5 Years	0
Thereafter	$ 0

Subsequent events (Details)

Subsequent events (Details) - shares	Jun. 01, 2020	May 31, 2020	Nov. 30, 2018
RSUs [Member]
Subsequent Event [Line Items]
Stock options granted in lieu of salary		200,000	225,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Granted (in shares)	1,600,000
Stock options granted in lieu of salary	170,000