Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 40-F |
Document Annual Report | true |
Document Registration Statement | false |
Document Period End Date | Dec. 31, 2021 |
Entity File Number | 001-40416 |
Entity Registrant Name | Nouveau Monde Graphite Inc. |
Entity Incorporation, State or Country Code | Z4 |
Entity Primary SIC Number | 1090 |
Entity Address, Address Line One | 481 rue Brassard |
Entity Address, City or Town | Saint-Michel-des-Saints |
Entity Address, Postal Zip Code | J0K 3B0 |
Entity Address, Country | CA |
City Area Code | 450 |
Local Phone Number | 757-8905 |
Title of 12(b) Security | Common Shares, no par value |
Trading Symbol | NMG |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Common Stock, Shares Outstanding | 55,118,316 |
Entity Central Index Key | 0001649752 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
ICFR Auditor Attestation Flag | false |
Auditor Name | PricewaterhouseCoopers LLP/s.r.l./s.e.n.c.r.l. |
Auditor Location | Montreal, Quebec |
Auditor Firm ID | 271 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address State Or Province | NY |
Entity Address, Address Line One | System 28 Liberty Street |
Entity Address, City or Town | New York |
Entity Address, Postal Zip Code | 10005 |
City Area Code | 212 |
Local Phone Number | 894-8940 |
Contact Personnel Name | CT Corporation |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT | ||
Cash | $ 62,355 | $ 4,520 |
Grants receivable and other current assets | 3,096 | 829 |
Restricted cash | 158 | |
Sales taxes receivable | 2,002 | 736 |
Tax credits receivable | 3,958 | 3,958 |
Prepaid expenses | 2,768 | 215 |
Total current assets | 74,179 | 10,416 |
NON-CURRENT | ||
Tax credits receivable | 5,509 | 3,802 |
Property, plant and equipment assets | 42,103 | 4,207 |
Intangible assets | 481 | 920 |
Right-of-use assets | 2,254 | 1,067 |
Restricted cash and deposits | 1,823 | 744 |
Total non-current assets | 52,170 | 10,740 |
Total assets | 126,349 | 21,156 |
CURRENT | ||
Accounts payables and accrued liabilities | 15,193 | 6,988 |
Deferred grants | 1,511 | |
Current portion of lease liabilities | 329 | 295 |
Borrowings | 208 | 1,793 |
Total current liabilities | 15,730 | 10,587 |
NON-CURRENT | ||
Asset retirement obligation | 1,009 | 621 |
Borrowings | 1,921 | |
Lease liabilities | 1,994 | 781 |
Convertible bond | 14,505 | |
Total non-current liabilities | 4,924 | 15,907 |
Total liabilities | 20,654 | 26,494 |
EQUITY (DEFICIENCY) | ||
Share capital | 206,483 | 60,537 |
Contributed surplus | 16,102 | 10,761 |
Equity component of convertible bond | 364 | |
Deficit | (116,890) | (77,000) |
Total equity (deficiency) | 105,695 | (5,338) |
Total liabilities and equity (deficiency) | $ 126,349 | $ 21,156 |
CONSOLIDATED STATEMENTS OF LOSS
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
EXPENSES | ||
Exploration and evaluation expenses | $ 8,362 | $ 10,340 |
Battery Material Plant project expenses | 5,976 | 2,911 |
General and administrative expenses | 24,203 | 7,770 |
Other revenues | (57) | |
Net smelter royalty | (4,306) | |
Operating loss | 38,484 | 16,715 |
Net financial costs | 1,006 | 1,263 |
Loss before tax | 39,490 | 17,978 |
Income tax | 400 | 0 |
Net loss and comprehensive loss | $ 39,890 | $ 17,978 |
Net earnings per Share | ||
Loss per share, Basic | $ (0.93) | $ (0.68) |
Loss per share, Diluted | $ (0.93) | $ (0.68) |
Weighted average number of shares outstanding - Basic | 42,971,152 | 26,287,106 |
Weighted average number of shares outstanding - Diluted | 42,971,152 | 26,287,106 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CAD ($) $ in Thousands | Share capital | Contributed surplus | Equity component of convertible bond | Deficit | Total |
Balance at the beginning at Dec. 31, 2019 | $ 56,184 | $ 9,592 | $ 0 | $ (59,022) | $ 6,754 |
Shares issued at the start of the period at Dec. 31, 2019 | 26,178,281 | ||||
Warrants expired | $ 3,574 | (521) | 3,053 | ||
Warrants expired (in shares) | 872,292 | ||||
Options exercised | $ 572 | (132) | 440 | ||
Options exercised (in shares) | 145,000 | ||||
Share-based compensation | $ 208 | 1,822 | 2,030 | ||
Share-based compensation (in shares) | 103,759 | ||||
Share issue costs | $ (1) | (1) | |||
Conversion of convertible bond | 364 | 364 | |||
Net loss and comprehensive loss | (17,978) | (17,978) | |||
Balance at the end at Dec. 31, 2020 | $ 60,537 | 10,761 | 364 | (77,000) | (5,338) |
Shares issued at the end of period at Dec. 31, 2020 | 27,299,332 | ||||
Shares issued from placements | $ 114,242 | 114,242 | |||
Shares issued from placements (in shares) | 11,479,977 | ||||
Warrants exercised | $ 17,825 | (198) | 17,627 | ||
Warrants exercised (in shares) | 7,821,700 | ||||
Options exercised | $ 3,339 | (1,137) | 2,202 | ||
Options exercised (in shares) | 720,201 | ||||
Shares issued for interest payment | $ 2,697 | 2,697 | |||
Shares issued for interest payment (in shares) | 297,106 | ||||
Share-based compensation | 6,676 | 6,676 | |||
Share issue costs | $ (7,170) | (7,170) | |||
Conversion of convertible bond | $ 15,013 | (364) | 14,649 | ||
Conversion of convertible bond (in shares) | 7,500,000 | ||||
Net loss and comprehensive loss | (39,890) | (39,890) | |||
Balance at the end at Dec. 31, 2021 | $ 206,483 | $ 16,102 | $ 0 | $ (116,890) | $ 105,695 |
Shares issued at the end of period at Dec. 31, 2021 | 55,118,316 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | |
OPERATING ACTIVITIES | ||
Net loss | $ (39,890) | $ (17,978) |
Depreciation and amortization | 1,095 | 1,202 |
Unrealized foreign exchange gain | (1,022) | |
Loss on disposal of investment | 22 | |
Loss on asset disposal | 5 | 2 |
Share-based compensation | 6,676 | 2,030 |
Financial costs | 2,053 | 1,114 |
Net smelter royalty | (4,306) | |
Accretion of the rehabilitation obligation | 5 | |
Net change in working capital | (3,247) | (135) |
Cash flows used in operating activities | (34,325) | (18,049) |
INVESTING ACTIVITIES | ||
Additions to property, plant, and equipment assets | (36,984) | (1,269) |
Restricted cash and deposits | (921) | (123) |
Tax credits and grants received | 3,327 | 731 |
Cash flows used in investing activities | (34,578) | (661) |
FINANCING ACTIVITIES | ||
Proceeds from placements | 114,242 | |
Proceeds from convertible bond, net of issue costs | 14,786 | |
Proceeds from borrowings, net of issue costs | 1,189 | 3,781 |
Repayment of borrowings and lease liabilities | (2,408) | (2,906) |
Proceeds from the exercise of warrants | 17,627 | 3,053 |
Proceeds from the exercise of stock options | 2,202 | 440 |
Share issue costs | (7,121) | (1) |
Cash flows from financing activities | 125,731 | 19,153 |
Effect of exchange rate changes on cash | 1,007 | |
Net change in cash | 57,835 | 443 |
Cash at the beginning of the year | 4,520 | 4,077 |
Cash at the end of the year | $ 62,355 | $ 4,520 |
NATURE OF OPERATIONS AND GOING
NATURE OF OPERATIONS AND GOING CONCERN | 12 Months Ended |
Dec. 31, 2021 | |
NATURE OF OPERATIONS AND GOING CONCERN | |
NATURE OF OPERATIONS AND GOING CONCERN | 1. Nouveau Monde Graphite Inc. (the “Company”) was established on December 31, 2012, under the Canada Business Corporations Act The Company’s shares are listed under the symbol NMG on the New York Stock Exchange , NOU on the TSX Venture Exchange (“TSXV”), and NM9A on the Frankfurt Stock Exchange. The Company’s registered office is located at 481 Brassard Street, Saint-Michel-des-Saints, Québec, Canada, J0K 3B0. The Company's consolidated financial statements have been prepared using accounting principles applicable to a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business as they come due. In assessing whether the going concern assumption is appropriate, management considers all available information about the future, which is at least, but not limited to, the next twelve months. Management believes that without additional funding, the Company does not have sufficient liquidity to pursue its planned expenditures over the next twelve months. These circumstances indicate the existence of material uncertainties that cast substantial doubt upon the Company's ability to continue as a going concern and accordingly, the appropriateness of the use of IFRS applicable to a going concern. The Company's ability to continue future operations and fund its development and acquisition activities is dependent on management's ability to secure additional financing in the future, which may be completed in a number of ways including, but not limited to, the issuance of debt or equity instruments, expenditure reductions, or a combination of strategic partnerships, joint venture arrangements, project debt finance, offtake financing, royalty financing and other capital markets alternatives. While management has been successful in securing financing in the past, there can be no assurance it will be able to do so in the future or that these sources of funding or initiatives will be available for the Company or that they will be available on terms which are acceptable to the Company. These consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities, expenses and financial position classifications that would be necessary if the going concern assumption was not appropriate. These adjustments could be significant. |
BASIS OF PREPARATION AND STATEM
BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE | 12 Months Ended |
Dec. 31, 2021 | |
BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE | |
BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE | 2. The Company’s consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”), as published by the International Accounting Standards Board (“IASB”). The accounting policies set out in note 3 were consistently applied to all years presented in these consolidated financial statements. The numbers for the average basic and diluted shares outstanding for all the periods presented in the consolidated statements of loss and comprehensive loss have been adjusted to reflect the effect of the 1 The consolidated financial statements for the year ended December 31, 2021 were approved and authorized for publication by the Board of Directors on March 22, 2022. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 3. POLICIES 3.1 BASIS OF CONSOLIDATION The Company’s consolidated financial statements consolidate those of the parent company and its subsidiaries. The parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary, and could affect those returns through its power over the subsidiary. All transactions and balances between group companies are eliminated upon consolidation, including unrealized gains and losses on transactions between group companies. Amounts reported in the financial statements of the subsidiary have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Company. Profit and loss and other comprehensive income of subsidiaries acquired or sold during the period are recognized from the effective date of the acquisition, or up to the effective date of disposal, as applicable. Subsidiaries Information on the Company’s subsidiaries as at December 31, 2021, all of which are wholly-owned, is as follows: NAME OF SUBSIDIARY PRINCIPAL ACTIVITY COUNTRY OF INCORPORATION YEAR OF INCORPORATION Quartier Nouveau Monde Real estate company Canada 2017 Nouveau Monde Europe LTD Trading company England and Wales 2020 3.2 FUNCTIONAL AND REPORTING CURRENCY The Group’s consolidated financial statements are presented in Canadian dollars, which is also the functional currency of the parent company and its subsidiaries and the presentation currency. Transactions in foreign currencies are initially recorded at their functional currency spot rates at the date the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. All differences are taken to the statement of loss and comprehensive loss. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transaction. 3.3 TAX CREDITS RECEIVABLE The Company is entitled to a refundable tax credit on qualified exploration expenditures incurred, refundable credit on duties for losses under the Mining Tax Act 3.4 GRANTS RECEIVABLE The Company periodically receives grants from different incentive programs. These grants are recognized initially when there is a reasonable assurance that they will be received and when the Company has intentions to comply with the conditions associated with the grant. The financial aid received for expenditures incurred is recognized against these expenditures on a systematic basis and in the same accounting period in which the expenditures are incurred. 3.5 RESEARCH AND DEVELOPMENT COSTS Research costs are expensed during the year in which the expenses are incurred. Development costs are capitalized when they meet the criteria for capitalization in accordance with IAS 38 Intangible Assets 3.6 PROPERTY AND EQUIPMENT Property and equipment are recognized at cost less accumulated depreciation and accumulated impairment losses. The assets are capitalized and amortized on a straight-line basis in the consolidated statement of loss and comprehensive loss. Generally, the depreciation rates are as follows: Buildings 25 Equipment 5-15 Furnitures 3-7 Computers 3 Rolling Stock 5 The residual value, depreciation method and the useful life of each asset are reviewed at least at each financial year-end. Gains or losses arising on the disposal of property and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognized in the statement of loss and comprehensive loss. 3.7 INTANGIBLE ASSETS The intangible assets include software and licenses with a definite useful life. The assets are capitalized and amortized on a straight-line basis in the consolidated statement of loss and comprehensive loss. The intangible assets are assessed for impairment whenever there is an indication that the intangible assets may be impaired. Generally, the depreciation rates are as follows: Software 2 Licences 2-10 3.8 MATAWINIE MINE PROJECT Management has established that effective from the beginning of the second quarter of 2021, the Matawinie mine project is in the development phase. Accordingly, all expenditures related to the development of the mine are capitalized under Mine under construction The costs related to the operation of the Matawinie Demonstration Plant will continue to be expensed as incurred under exploration and evaluation expenses Property, plant and equipment Intangible asset. 3.9 BATTERY MATERIAL PLANT PROJECT Costs incurred in the construction and development of the Company’s Battery Material Plant project are capitalized under Battery Material Demonstration Plant impaired in value. The equipment and building are not yet in use as at December 31, 2021, therefore, the depreciation will begin when the assets are ready for their intended use. The costs related to the operation of the Battery Material Demonstration Plant will continue to be expensed as incurred under Battery Material Plant project expenses Property, plant and equipment Intangible asset. 3.10 IMPAIRMENT OF NON-FINANCIAL ASSETS For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). As a result, some assets are tested individually for impairment, and some are tested at a cash-generating unit level. Whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, an asset or cash-generating unit is reviewed for impairment. An impairment loss is recognized in profit or loss for the amount by which the assets or cash-generating unit’s carrying amount exceeds its recoverable amount. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less cost to sell and its value in use. An impairment charge is reversed if the assets or cash-generating unit’s recoverable amount exceeds its carrying amount. 3.11 INCOME TAXES Income tax is recognized in the 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 taxes Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year-end, adjusted for amendments to income tax payable regarding previous years. ̶ Deferred taxes Deferred tax is provided using the liability method, providing for temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The temporary difference is not provided for if it arises from the initial recognition of goodwill or the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the financial position reporting date and whose implementation is expected over the period in which the deferred tax is realized or recovered. A deferred 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 used. Assets and liabilities are offset where the entity has a legally enforceable right to offset current tax assets and liabilities or deferred tax assets and liabilities, and the respective assets and liabilities relate to income taxes levied by the same taxation authority. 3.12 EQUITY ̶ Share capital Share capital represents the amount received on the issue of shares, less issuance costs, net of any underlying tax benefit from these issuance costs. In addition, if shares were issued as consideration for the acquisition of a mineral property or some other form of non-monetary assets, they are measured at their fair value according to the quoted price on the day of the conclusion of the agreement. ̶ Contributed surplus and warrants Contributed surplus includes charges related to share options not exercised and amounts attributable to expired warrants. 3.13 BASIC AND DILUTED LOSS PER SHARE Basic loss per share is calculated by dividing the loss attributable to common equity holders of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by adjusting loss attributable to common equity holders of the Company, and the weighted average number of common shares outstanding, for the effects of all dilutive potential common shares which include convertible debt, options, broker’s options, and warrants. Dilutive potential common shares arising from option type instruments shall be deemed to have been exercised at the beginning of the period or, if later, at the date of issue of the potential common shares and the proceeds from their exercise used to repurchase common shares at the average market price. The if-converted method is used for convertible bond. 3.14 PROVISION AND CONTINGENT LIABILITIES Provisions are recognized when present legal or constructive obligations as a result of a past event will probably lead to an outflow of economic resources from the Company and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain. Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Provisions are discounted when the time value of money is significant. The Company’s operations are governed by government environment protection legislation. Environmental consequences are difficult to identify in terms of amounts, timetable and impact. As of the reporting date, management believes that the Company’s operations are in compliance with current laws and regulations. An asset retirement provision is recognized when there is constructive commitment that has resulted from past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be measured with sufficient reliability. In those cases where the possible outflow of economic resources as a result of present obligations is considered improbable or remote, no liability is recognized. Such situations are disclosed as contingent liabilities unless the outflow of resources is remote. All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. 3.15 PROVISION FOR ASSET RETIREMENT OBLIGATION Provision for environmental rehabilitation, restructuring costs and legal claims, where applicable, is recognized when: i) The Company has a present legal or constructive obligation as a result of past events; ii) It is probable that an outflow of resources will be required to settle the obligation; iii) The amount can be reliably estimated. The provision is measured at management’s best estimate of the expenditure required to settle the obligation at the end of the reporting period, and is discounted to present value where the effect is material. The increase in the provision due to passage of time is recognized as finance costs. Changes in assumptions or estimates are reflected in the period in which they occur. Provision for environmental rehabilitation represents the legal and constructive obligations associated with the eventual closure of the Company’s property, plant and equipment. These obligations consist of costs associated with reclamation and monitoring of activities and the removal of tangible assets. The discount rate used is based on a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation, excluding the risks for which future cash flow estimates have already been adjusted. 3.16 SHARE-BASED PAYMENTS The Company operates an equity-settled share-based payment plan for its eligible directors, officers, employees and consultants. The Company’s plan does not feature any option for a cash settlement. All goods and services received in exchange for the grant of any share-based payments are measured at their fair values unless that fair value cannot be estimated reliably. If the Company cannot estimate reliably the fair value of the goods or services received, the Company shall measure their value indirectly by reference to the fair value of the equity instruments granted. For the transactions with employees and others providing similar services, the Company measured the fair value of the services rendered by reference to the fair value of the equity instruments granted. All equity-settled share-based payments (except broker’s options) are ultimately recognized as an expense in profit or loss with a corresponding credit to Contributed surplus, in equity. Equity-settled share-based payments to brokers, in respect of an equity financing, are recognized as issuance costs of the equity instruments with a corresponding credit to Contributed surplus, in equity. The expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognized in the current period. No adjustment is made to any expense recognized in a prior period if some vested share options are not ultimately exercised. 3.17 FINANCIAL INSTRUMENTS Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through profit or loss (“FVTPL”), which are measured initially at fair value. The subsequent measurement of financial assets and financial liabilities is described below (and Note 24). Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. A financial liability is derecognized when it is extinguished, discharged, cancelled or expires. Financial assets and financial liabilities are offset, and the net amount is reported in the statement of financial position when there is an unconditional and legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. ̶ Financial assets Financial assets are initially measured at fair value. If the financial asset is not subsequently accounted for at FVTPL, then the initial measurement includes transaction costs that are directly attributable to the asset’s acquisition or origination. On initial recognition, the Company classifies its financial assets in the following measurement categories: ̶ measured subsequently at amortized cost; or ̶ measured subsequently at fair value (either through other comprehensive loss, or through net loss). i) Financial assets measured at amortized cost A financial asset is subsequently measured at amortized cost, using the effective interest method and net of any impairment loss, if: ̶ 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. ii) Financial assets measured at fair value A financial asset shall be measured at fair value through net loss unless it is measured at amortized cost or at fair value through other comprehensive loss. A financial asset shall be measured at fair value through other comprehensive loss if both of the following conditions are met: ̶ 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. For investments in debt instruments, this will thus depend on the business model in which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive loss, in which case, gains and losses will never be reclassified to net loss, and no impairment may be recognized in net loss. Dividends earned from such investments are recognized in net loss, unless the dividend clearly represents a repayment of part of the cost of the investment. ̶ Financial liabilities Financial liabilities are subsequently measured at amortized cost using the effective interest method, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value. Financial instruments – Fair value The fair value of a financial instrument is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s-length transaction. Fair values of financial instruments traded in active markets are determined based on quoted market prices, where available. For financial instruments not traded in an active market, fair values are determined based on appropriate valuation techniques. Such techniques may include discounted cash flow analysis, using recent arm’s-length market transactions, reference to the current fair value of another instrument that is substantially the same, and other valuation models. The Company applies a hierarchy to classify valuation methods used to measure financial instruments carried at fair value. Levels 1 to 3 are defined based on the degree to which fair value inputs are observable and have a significant effect on the recorded fair value, as follows: ̶ Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; ̶ Level 2: Valuation techniques use significant observable inputs, directly or indirectly, or valuations are based on quoted prices for similar instruments; and ̶ Level 3: Valuation techniques use significant inputs that are not based on observable market data (unobservable inputs). ̶ Compound instruments The convertible bond issued by the Company was a compound financial instrument which the principal amount, together with all accrued and unpaid or uncapitalized interest could be converted into a fixed number of common shares of the Company at the option of the holder. The liability component of the compound instrument was established by discounting the contractual cash flow, the remaining balance, net of the issuance cost, was allocated to the equity component of the financial instrument. ̶ Impairment of financial assets The Company assesses on a forward-looking basis the expected credit loss associated with its debt instruments carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. This assumption is used principally for cash and related balances. The Company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. An external rating of investment grade is considered to indicate that a financial instrument that may be considered as having low credit risk. The Company applies the simplified approach permitted by IFRS 9 for trade receivables and contract assets, which requires lifetime expected credit losses to be recognized from initial recognition of the receivables. The Company’s financial instruments consist of the following: FINANCIAL ASSETS CLASSIFICATION Cash Amortized cost Amounts receivable Amortized cost Grant and other receivables Amortized cost Investment Fair value through profit or loss FINANCIAL LIABILITIES CLASSIFICATION Accounts payable and accrued liabilities Amortized cost Borrowings Amortized cost Convertible bond (liability component) Amortized cost 3.18 LEASES Leases are recognized as a right-of-use asset and a corresponding liability in lease liabilities at the date at which the leased asset is available for use by the Company. The lease liability is initially measured at the present value of the future lease payment, including variable lease payment that depends on an index or a rate. The lease liability is discounted using the interest rate implicit in the contract if this rate can be easily determined, otherwise, the lessee must use his marginal borrowing rate. The monthly lease payments are segregated between the principal repayment and the finance cost. The present value of the lease liability is increased to reflect the accretion of interest and decreased by the principal repayment. The accretion of interest is charged to the profit and loss over the lease period. If a change to the lease were to happen, the lease liability would be remeasured to reflect those changes (e.g., changes in the lease term or changes in the lease payment). The right-of-use assets are initially measured at cost, which includes the amount of the initial measurement of the lease liability and any lease payments made at or before the commencement date. The right-of-use assets are amortized on a straight-line basis over the duration of the lease. Rental payments under short-term leases or leases with low-value underlying assets are recorded in operating expenses on a straight-line basis over the duration of the lease. 3.19 SEGMENT DISCLOSURE The Company currently operates in two segments: the Matawinie Mine Project and the Battery Material Plant project. The business segments presented reflect the management structure of the Company and the way in which the Company’s chief operating decision maker reviews business performance. The Matawinie Mine Project and Batterie Material Plant project were identified as separate segments due to their specific nature. Indeed, the nature of the products and services, the production processes, regulatory environment and the targeted customer are very different for each operating segment. The measure of profit or loss for each segment corresponds to the amounts reported for Exploration and evaluation expenses and Battery Material Plant project expenses, respectively, in the consolidated statement of loss and comprehensive loss. All the Company’s activities are conducted in Quebec, Canada. |
ACCOUNTING STANDARDS ISSUED BUT
ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE | |
ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE | 4. The Company has not yet adopted certain standards, interpretations to existing standards and amendments which have been issued but have an effective date later than December 31, 2021. Many of these updates are not expected to have any significant impact on the Company and are therefore not discussed herein Amendments to IAS 16 Property, plant and equipment The IASB has made amendments to IAS 16 Property, plant and equipment |
ESTIMATES, JUDGEMENTS AND ASSUM
ESTIMATES, JUDGEMENTS AND ASSUMPTIONS | 12 Months Ended |
Dec. 31, 2021 | |
ESTIMATES, JUDGEMENTS AND ASSUMPTIONS | |
ESTIMATES, JUDGEMENTS AND ASSUMPTIONS | 5. In preparing its consolidated financial statements, management makes several judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, revenues, and expenses. Information about the significant estimates and assumptions that have the greatest impact on the recognition and measurement of assets, liabilities, revenues, and expenses is presented below. Actual results may differ significantly. Technical Feasibility and Commercial Viability The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors. By its nature, this assessment requires significant judgment. Following the events of the quarter ended March 31, 2021, including the receipt of the Governmental authorisation (“Decree”) for the Matawinie Project, management determined that the technical feasibility and commercial viability for the Matawinie Project was established as at March 31, 2021 and as a result, the project entered the development phase during the second quarter of 2021. Going concern The assessment of the Company’s ability to execute its strategy by funding future working capital requirements involves judgement. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. COVID-19 impact The duration and full financial effect of the COVID-19 pandemic is unknown at this time, as are the measures taken by governments, companies, and others to attempt to reduce the spread of COVID-19. Any estimate of the length and severity of these developments is therefore subject to uncertainty, and accordingly estimates of the extent to which the COVID-19 may materially and adversely affect the Company’s operations, financial results and condition in future periods are also subject to uncertainty. As at December 31, 2020, and 2021 the demonstration plant in Saint-Michel-des-Saints was producing graphite flakes similarly to pre-COVID-19 levels, activities related to the detail engineering of the mine and concentrator continues to advance, and the construction of the Battery Material Demonstration Plant in Bécancour continues to make significant progress. Provision for asset retirement obligation The Company’s exploration activities are subject to several environmental protection laws and regulations. The Company accounts for management’s best estimate of asset retirement obligations in the period in which the obligations arise. Costs actually incurred in future periods could be significantly different from these estimates. In addition, future changes in laws and regulations, timing of estimated cash flows and discount rates may impact the carrying amount of this provision. Share-based payments The Company uses the Black-Scholes option pricing model in determining share-based payments, which requires a number of assumptions to be made, including the risk-free interest rate, expected life, forfeiture rate and expected share price volatility. Tax credits Tax credits for the current and prior periods are measured at the amount that the Company expects to recover, based on its best estimate and judgment at the reporting date. However, uncertainties as to the interpretation of the tax regulations, regarding refundable mining rights credits for loss and refundable tax credits on eligible exploration expenses, as well as regarding amount and timing of recovery of these tax credits. To determine whether the expenses it incurs are eligible for exploration tax credits, the Company must use judgment and resort to complex techniques. As a result, there may be a significant difference between the amount recognized in respect of tax credits and the actual amount of tax credits received because of the tax administrations’ review of matters that were subject to interpretation. In the event of such a difference, an adjustment will be made to the tax credits for mineral prospecting expenses in future periods. It can take a long time for the tax administration to report its decisions on tax issues, thereby extending the tax credit recovery period. Mineral exploration tax credits that the Company expects to recover in more than one year are classified as non-current assets. The amounts recognized in the consolidated financial statements are based on the best estimates of the Company and in its best possible judgment, as noted above. However, given the uncertainty inherent in obtaining the approval of the tax authority concerned, the amount of tax credits that will be recovered and the timing of such recovery may differ materially from accounting estimates and would affect the financial position and cash flow of the Company. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 6. Battery Material Mine under Demonstration Plant Land Buildings Equipment Computers Furniture Rolling stock construction under construction Total $ $ $ $ $ $ $ $ $ COST Balance as at January 1, 2021 507 2,642 — 56 70 24 — 1,206 4,505 Acquisition 1,905 149 163 132 — 29 18,032 17,680 38,090 Write-Off/Disposals — — — (47) (45) — — — (92) Balance as at December 31, 2021 2,412 2,791 163 141 25 53 18,032 18,886 42,503 ACCUMULATED DEPRECIATION Balance as at January 1, 2021 — 219 — 39 32 8 — — 298 Depreciation — 111 19 30 22 7 — — 189 Write-Off/Disposals — — — (44) (43) — — — (87) Balance as at December 31, 2021 — 330 19 25 11 15 — — 400 Net book value as at December 31, 2021 2,412 2,461 144 116 14 38 18,032 18,886 42,103 Battery Material Mine under Demonstration Plant Land Buildings Equipment Computers Furniture Rolling stock construction under construction Total $ $ $ $ $ $ $ $ $ COST Balance as at January 1, 2020 467 2,430 63 47 70 9 — — 3,086 Acquisition 40 212 — 9 — 15 — 1,206 1,482 Write-Off/Disposals — — (63) — — — — — (63) Balance as at December 31, 2020 507 2,642 — 56 70 24 — 1,206 4,505 ACCUMULATED DEPRECIATION Balance as at January 1, 2020 — 118 59 14 19 4 — — 214 Depreciation — 101 2 25 13 4 — — 145 Write-Off/Disposals — — (61) — — — — — (61) Balance as at December 31, 2020 — 219 — 39 32 8 — — 298 Net book value as at December 31, 2020 507 2,423 — 17 38 16 — 1,206 4,207 The Battery Material Demonstration Plant under construction is presented net of grants of $5,483 for the year ended December 31, 2021 (December 31, 2020: $731). During the year ended December 31, 2021, the Company bought back a 1.8% NSR on the Matawinie property for $1.8M that is included in Mine under construction. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 7. In 2019, the Company and Hydro-Quebec (“HQ”) signed a licence agreement by which the Company is allowed to use HQ’s patented technologies for the micronization, spheronization, purification and natural graphite coating to serve the lithium-ion battery market. The Company paid US $2 million ($2,562) for the use of the patents which have different expiry dates between October 24, 2021, to June 7, 2028. The licence was capitalized as an intangible asset and will be amortized over the life of the underlying patents. Software Licenses Total $ $ $ COST Balance as at January 1, 2021 16 2,562 2,578 Write-off of assets (16) (958) (974) Balance as at December 31, 2021 — 1,604 1,604 ACCUMULATED DEPRECIATION Balance as at January 1, 2021 16 1,643 1,659 Amortization — 438 438 Write-off of assets (16) (958) (974) Balance as at December 31, 2021 — 1,123 1,123 Net book value as at December 31, 2021 — 481 481 Software Licenses Total $ $ $ COST Balance as at January 1, 2020 16 2,562 2,578 Balance as at December 31, 2020 16 2,562 2,578 ACCUMULATED DEPRECIATION Balance as at January 1, 2020 7 1,045 1,052 Amortization 9 597 606 Balance as at December 31, 2020 16 1,642 1,658 Net book value as at December 31, 2020 — 920 920 |
RIGHT-OF-USE ASSETS
RIGHT-OF-USE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
RIGHT-OF-USE ASSETS. | |
RIGHT-OF-USE ASSETS | 8. The Company has lease contracts for various items of mining equipment, motor vehicles and buildings used in its operations. Leases of mining equipment and rolling stock generally have lease terms two two Set below are the carrying amount of Right-of-use assets and the movement during the years. Buildings Equipment Rolling stocks Total $ $ $ $ COST As at January 1, 2021 1,297 339 273 1,909 New leases 1,612 — — 1,612 End of leases (252) (339) (109) (700) Remeasurement of lease 58 — — 58 As at December 31, 2021 2,715 — 164 2,879 ACCUMULATED DEPRECIATION As at January 1, 2021 386 321 135 842 Depreciation 419 3 46 468 End of leases (252) (324) (109) (685) As at December 31, 2021 553 — 72 625 Net book value as at December 31, 2021 2,162 — 92 2,254 Buildings Equipment Rolling stocks Total $ $ $ $ COST As at January 1, 2020 457 339 158 954 New leases 840 — — 840 Remeasurement of lease — — 115 115 As at December 31, 2020 1,297 339 273 1,909 ACCUMULATED DEPRECIATION As at January 1, 2020 157 167 67 391 Depreciation 229 154 68 451 As at December 31, 2020 386 321 135 842 Net book value as at December 31, 2020 911 18 138 1,067 Included in the depreciation of Right-of-use assets for the period is $213 ($321 in 2020) that have been included under the Evaluation and exploration expenses and $166 ($27 in 2020) under the Battery Material Plant project expenses line in the consolidated statements of loss and comprehensive loss. |
ACCOUNTS PAYABLES AND ACCRUED L
ACCOUNTS PAYABLES AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS PAYABLES AND ACCRUED LIABILITIES | |
ACCOUNTS PAYABLES AND ACCRUED LIABILITIES | 9. December 31, 2021 December 31, 2020 $ $ Trade payables and accrued liabilities 13,284 4,285 Wages and benefits liabilities 1,772 1,767 Other payables 137 139 Interest payable on convertible bond — 797 Accounts payables and accrued liabilities 15,193 6,988 |
GRANTS RECEIVABLE AND OTHER CUR
GRANTS RECEIVABLE AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
GRANTS RECEIVABLE AND OTHER CURRENT ASSETS | |
GRANTS RECEIVABLE AND OTHER CURRENT ASSETS | 10. Grants In August 2019, the Company completed the closing of a federally funded grant with Sustainable Development Technology Canada (“SDTC”) for a total of $4.25 million. The SDTC decided in March 2021 to increase the grant by an additional $223. This grant will help the Company build the Purification Demonstration Plant in Bécancour, Quebec. In February 2020, the Company received the first milestone payment of $2 million. SDTC also increased its initial commitment of $4.25 million to the Company by 5%, representing an additional $213 in grant, because of the COVID-19 impact on Canadian companies. The additional $213 amount was received at the end of March 2020.During the year 2021, the Company received a payment of $1,191. As at December 31, 2021, $1,111 of grant receivable was recorded for eligible expenditures. In addition to the SDTC program, the Company finalized another grant agreement in April 2020 with Transition énergétique Québec (“TEQ”), a Quebec government funded program, in relation to the same project of building the Purification Demonstration Plant in Bécancour. The additional grant of $3 million was secured via TEQ’s Technoclimat program. As at December 31, 2021 $1,463 of grant receivable was recorded for eligible expenditures. As at December 31, 2020, the Company had $1.5 million recorded as deferred grants for both of the above-mentioned programs. The full amount was applied against related eligible expenditures during 2021. The remaining $380 grants receivable as at December 31, 2021 is composed of various smaller grants as there is reasonable assurance that they will be received and when the Company has reasonable assurance that it will continue to comply with the conditions associated with the grants. |
LEASE LIABILITIES
LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
LEASE LIABILITIES. | |
LEASE LIABILITIES | 11. December 31, 2021 December 31, 2020 $ $ Opening balance 1,076 609 New liabilities and modifications of leases 1,670 955 Lease write off (15) — Principal repayment (408) (488) Ending balance 2,323 1,076 Current portion 329 295 Non-current portion 1,994 781 The Company also has certain leases of assets with lease terms of 12 months or less. The Company applies the short-term lease assets recognition exemptions for these leases. The expenses related to short term leases were $339 for the year ended December 31, 2021 (December 31, 2020: $572). |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS. | |
BORROWINGS | 12. December 31, 2021 December 31, 2020 $ $ Opening balance 1,793 4,502 New borrowings 2,281 3,803 Repayments (2,000) (2,419) Issue costs — (21) Accretion of issue costs 9 25 Interest capitalized 46 209 Debts settled in exchange of Royalty — (4,306) Ending balance 2,129 1,793 Current portion 208 1,793 Non-current portion 1,921 — On March 16, 2020, the Company concluded a new financing agreement with Pallinghurst, a related party, for a total of $2,000. This agreement required the reimbursement of the capital plus all accrued interests at the latest on December 31, 2020. The agreement bore interest at 9% annually. On April 29, 2020, the Company closed a financing agreement with Investissement Québec for an aggregate amount received of $1,803 through two loan offers. The conditions also included a 1% issue cost fee calculated on the total aggregate amount. The interest on the loan offer totalling $611 was the current prime rate of 2.45% plus 0.07%, while the interest rate on the loan offer totalling $1,192 was the current prime rate of 2.45%. The capital had to be repaid by no later than June 30, 2021. To secure its obligations set out in the loan offers, the Company had granted two first-ranking mortgages for a total of the loan amount received covering the universality of its present and future receivables, including the universality of its tax credits. On June 30, 2021, the Company fully reimbursed its loan of $1,802 with Investissement Québec, a related party. On August 28, 2020, the Company closed a financing transaction with Pallinghurst where the Company issued a 3.0% royalty over the Matawinie graphite property to Pallinghurst for an aggregate purchase price of $4,306. The purchase price for the royalty was satisfied by setting-off all principal and accrued interest owed by the Company to Pallinghurst under the promissory note dated June 27, 2019 in the principal amount of $2 million, the promissory note dated March 16, 2020 in the principal amount of $2 million, and the accrued interests totaling $306. As the carrying amount of the underlying properties was nil, an amount corresponding to the purchase price has been reported as net smelter royalty in the consolidated statement of loss and comprehensive loss. On January 29, 2021, the Company financed the purchase of a land located in Bécancour, Québec, through a financing agreement with the vendor, for a total of $1,137. The financed portion bears interest at 8% per annum and shall be repaid by December 2025. The Company may pay the balance of principal, in whole or in part, at any time without penalty. During March 2021, the Company received $1,350 as part of a repayable contribution agreement with the Canada Economic Development for Quebec Regions. This contribution agreement bears no interest and will be repayable in 60 equal monthly installments starting September 2023. The loan was measured at the present value of all future payments discounted using a 5.50% interest rate, thus resulting in a loan valued at $1,025. The difference between the carrying value of the contribution and the discounted loan value was recognized as a grant of $325. Also, during December 2021, the Company received the remaining $150, which was measured at the present value using the same interest rate, thus resulting in a loan valued at $119. The difference between the carrying value of the contribution and the discounted loan value was recognized as a grant of $31. During the year ended December 31, 2021, the Company paid out a total of $101 ($123 for the year ended December 31, 2020) of interest to its lenders. |
CONVERTIBLE BOND
CONVERTIBLE BOND | 12 Months Ended |
Dec. 31, 2021 | |
CONVERTIBLE BOND. | |
CONVERTIBLE BOND | 13. December 31, 2021 December 31, 2020 $ $ Opening balance 14,505 — Proceeds — 15,000 Equity component of convertible bond — (364) Issue costs — (214) Conversion (14,649) — Accretion expense 144 83 Ending balance — 14,505 Current portion — — Non-current portion — 14,505 In October 2021, the Company issued 7,500,000 common shares following the conversion of all outstanding convertible bond held by Pallinghurst group, a related party. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended |
Dec. 31, 2021 | |
ASSET RETIREMENT OBLIGATION | |
ASSET RETIREMENT OBLIGATION | 14. December 31, 2021 December 31, 2020 $ $ Opening balance 621 621 New obligations 383 — Accretion expense 5 — Ending balance 1,009 621 The asset retirement obligation that arose during year ended December 31, 2021, represents the present value of the estimated amount of undiscounted cash flows required to satisfy the asset retirement obligation in respect of the Matawinie Mine. The estimation was made using a percentage of completion of the total budgeted cost of rehabilitation. The Company has determined the fair value of its rehabilitation obligation by using a discount rate of 3.62%, assuming reclamation work would be completed in 28 years. The liabilities accrete to their future value until the obligations are due. The estimated rehabilitation obligation will increase as the construction of the Matawinie Mine progresses. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
EQUITY | |
EQUITY | 15. 15.1 SHARE CAPITAL Authorized share capital Unlimited number of common shares voting and participating, with no par value For the year ended December 31, 2021 For the year ended December 31, 2020 Shares issued at the start of the period 27,299,332 26,178,281 Shares issued from placements 11,479,977 — Exercise of warrants 7,821,700 872,291 Exercise of options 720,201 145,000 Shares issued for conversion debt (convertible bond) 7,500,000 — Shares issued for interest payment 297,106 — Share based compensation — 103,760 Shares issued at the end of period 55,118,316 27,299,332 On September 1, 2020, the Company issued an aggregate of 103,759 common shares at a price of $2 per common share, for an aggregate amount of $208 to 31 of its employees in settlement of an unpaid portion of wages resulting from a temporary measure in response to the COVID-19 pandemic. On January 20, 2021, the Company concluded an underwritten public offering agreement for 1,034,500 common shares, at a price of $14.50 per share for gross proceeds of $15M. The buyers exercised their option to purchase an additional 155,175 common shares. The total gross proceeds obtained from this public offering agreement sum up to $17.25M. On February 12, 2021, the Company closed a private placement equity financing totaling $5.8M and the Company issued a total of 396,552 common shares at a price of $14.50 per share. Of this amount, Investissement Québec, acting as mandatory for the government of Québec, subscribed for 317,241 common shares, and Pallinghurst, subscribed for the remainder of the common shares. On June 23, 2021, the Company concluded an underwritten public offering agreement for 7,000,000 common shares, at a price of $9.22 (US$7.50) per share for gross proceeds of $64.5M (US$52.5M). The buyers exercised their option to purchase an additional 915,000 common shares. The total gross proceeds obtained from this public offering agreement sum up to $72.9M (US$59.4M). Of this amount, Pallinghurst purchased 66,666 common shares. On July 23, 2021, the Company closed a private placement equity financing with Investissement Québec, acting as mandatory for the government of Québec, and issued a total of 1,978,750 common shares at a price of $9.25 per share for total proceeds of $18.3M. This financing was complemented in the context of the underwritten public offering agreement closed on June 23, 2021. 15.2 LOSS PER SHARE Basic loss per share is calculated by dividing the net loss for the year by the weighted average number of ordinary shares outstanding during the year. Since the Company reports a loss, the diluted net loss per common share is equal to the basic net loss share as there are no instruments that have a dilutive effect on earnings. 15.3 WARRANTS December 31, 2021 December 31, 2020 Weighted average Weighted average exercise price exercise price Number $ Number $ Opening balance 7,853,439 2.26 2,676,614 3.80 Issued — — 7,500,000 2.20 Exercised (7,821,700) 2.25 (872,291) 3.50 Expired (31,739) 3.50 (1,450,884) 4.00 Ending balance — — 7,853,439 2.26 15.4 SHARE-BASED PAYMENTS The Board of Directors determines the price per common share and the number of common shares which may be allocated to each director, officer, employee and consultant and all other terms and conditions of the option, subject to the rules of the TSXV. The plan has a policy that caps the maximum of total options that can be granted to 10% of the total outstanding shares of the Company. All share-based payments will be settled in equity. The Company has no legal or contractual obligation to repurchase or settle the options in cash. The Company’s share options are as follows for the year ended December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Weighted average Weighted average exercise price exercise price Number $ Number $ Opening balance 2,400,000 3.20 1,582,500 2.80 Granted 735,000 15.95 1,192,500 3.64 Exercised (720,201) 3.06 (145,000) 3.05 Expired (51,300) 7.00 (230,000) 2.66 Forfeited (1,250) 16.84 — — Cancelled (10,000) 16.84 — — Ending balance 2,352,249 7.07 2,400,000 3.20 Options that can be exercised 2,058,500 7.30 2,000,000 3.37 The weighted average share price at the time of exercise for 2021 is $13.45 ($6.24 in 2020). For the year ended December 31, 2021, the Company granted 245,000 options to officers, 375,000 to directors, 105,000 to employees, and 10,000 to consultants. The vesting period on option granted varies from vesting immediately to in four semi-annual tranche. Each option entitles the holder to subscribe to one common share of the Company, at an average price of $15.95 per common share, for a period of 5 years. For the year ended December 31, 2020, the Company granted 505,000 options to officers, 207,500 to directors, 285,000 to employees, and 195,000 to consultants. Options granted have different vesting periods. Each option entitles the holder to subscribe to one common share of the Company, at an average price of $3.64 per common share, for an average period of 4.8 years. The weighted average fair value of the share options granted were estimated using the Black-Scholes option pricing model based on the following average assumptions: 2021 2020 Share price at date of grant $ 15.95 $ 3.64 Expected life 5 years 4.75 years Risk-free interest rate 0.82 % 0.39 % Expected volatility 67.86 % 54.68 % Expected dividend Nil Nil The expected annualized volatility was based on historical data for the Company. The fair value of the share options is amortized over the vesting period, considering expected forfeitures. Share options issued are exercisable at the closing market price of the common shares of the day prior to their grant. December 31, 2021 Weighted average exercise price Expiration date Total number Total exercisable $ Year 2022 115,000 115,000 3.23 Year 2023 375,000 325,000 3.42 Year 2024 312,500 312,500 2.33 Year 2025 826,000 676,000 3.30 Year 2026 723,750 630,000 15.93 Ending balance 2,352,250 2,058,500 7.07 |
EXPLORATION AND EVALUATION EXPE
EXPLORATION AND EVALUATION EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
EXPLORATION AND EVALUATION EXPENSES | |
EXPLORATION AND EVALUATION EXPENSES | 16. December 31, 2021 December 31, 2020 $ $ Wages and benefits 3,637 2,294 Share-based compensation 452 594 Engineering 1,856 3,964 Professional fees 190 506 Materials, consumables, and supplies 1,330 1,447 Subcontracting 1,454 1,706 Geology and drilling 143 389 Utilities 349 388 Amortization 217 320 Other 213 265 Grants (36) (164) Tax credits (1,443) (1,369) Exploration and evaluation expenses 8,362 10,340 The exploration and evaluation expenses relate to the Matawinie Mine in Quebec. The wages and benefits are net of the grant received as part of the Canada Emergency Wage Subsidy program of $473 in 2021 ($892 in 2020). |
BATTERY MATERIAL PLANT PROJECT
BATTERY MATERIAL PLANT PROJECT EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
BATTERY MATERIAL PLANT PROJECT EXPENSES | |
BATTERY MATERIAL PLANT PROJECT EXPENSES | 17. December 31, 2021 December 31, 2020 $ $ Wages and benefits 754 768 Share-based compensation — 112 Engineering 4,136 2,399 Professional fees 898 866 Materials, consumables, and supplies 686 130 Subcontracting 268 475 Amortization 177 27 Other 39 43 Grants (718) (1,678) Tax credits (264) (231) Battery Material Plant project expenses 5,976 2,911 The battery material plant project expenses relate to the costs incurred in anticipation of the development of advanced materials plant in Bécancour, Québec. The wages and benefits are net of the grant received as part of the Canada Emergency Wage Subsidy program of $81 in 2021 ($189 in 2020). |
GENERAL AND ADMINISTRATIVE EXPE
GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
GENERAL AND ADMINISTRATIVE EXPENSES. | |
GENERAL AND ADMINISTRATIVE EXPENSES | 18. December 31, 2021 December 31, 2020 $ $ Wages and benefits 4,883 2,920 Share-based compensation 6,224 1,323 Professional fees 2,635 1,168 Consulting fees 1,476 220 Travelling, representation and convention 627 397 Office and administration 6,747 727 Stock exchange, authorities, and communication 872 111 Depreciation and amortization 699 854 Loss on asset disposal 5 2 Other financial fees 35 48 General and administrative expenses 24,203 7,770 Included in the office and administration expenses are $1.2M in connection with the settlement of a litigation in September 2021. |
NET FINANCIAL COSTS
NET FINANCIAL COSTS | 12 Months Ended |
Dec. 31, 2021 | |
NET FINANCIAL COSTS | |
NET FINANCIAL COSTS | 19. December 31, 2021 December 31, 2020 $ $ Foreign exchange loss (gain) (985) 15 Interest income (327) (40) Interest expense on lease liabilities 113 28 Accretion and interest on borrowings and bond 2,196 1,213 Accretion of issue costs 9 25 Loss of fair value on investment — 22 Net financial costs 1,006 1,263 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 20. The income tax expense attributable to earnings differs from the amounts computed by applying the combined federal and provincial statutory income tax rate of 26.5% (26.5% in 2020) to loss before income taxes as a result of the following: December 31, 2021 December 31, 2020 $ $ Loss before income taxes (39,490) (17,978) Tax recovery computed at applicable statutory tax rate 26.50 % 26.50 % Tax expense at combined statutory rate (10,465) (4,617) Increase (decrease) in income taxes resulting from: Temporary difference not recorded 8,937 4,268 Share-based payments 1,769 538 Non-deductible expenses 406 — Non-taxable mining duties (219) (217) Other (28) 28 Income tax 400 — Composition of deferred income taxes in the income statement: Taxes payable 400 — Income tax 400 — As at December 31, 2021 and 2020, temporary differences and unused tax losses for which the Company has not recognized deferred tax assets are as follows: December 31, 2021 December 31, 2020 $ $ FEDERAL Exploration and evaluation expenses 37,787 24,034 Property and equipment 2,253 3,898 Equity investment 646 646 Asset retirement obligation 1,009 621 Share issue expenses 5,990 629 Research and development expenses 16,700 12,946 Non-capital losses 46,371 16 Other 74 30,747 110,830 73,537 PROVINCIAL Exploration and evaluation expenses 35,058 22,296 Property and equipment 2,253 3,881 Equity investment 646 646 Asset retirement obligation 1,009 621 Share issue expenses 293 629 Research and development expenses 19,447 14,427 Non-capital losses 45,943 16 Other 74 30,791 104,723 73,307 The ability to realize the tax benefits is dependent upon several factors, including the future profitability of operations. Deferred tax assets are recognized only to the extent that it is probable that sufficient taxable profits will be available to allow the asset to be recovered. As at December 31, 2021, the Company’s accumulated non-capital losses for tax purposes which can be used to reduce taxable income in future years as follows: Year incurred Expiration date Federal Provincial 2021 2040 18,535 18,515 2020 2040 10,836 10,546 2019 2039 5,381 5,457 2018 2038 4,137 4,044 2017 2037 2,526 2,578 2016 2036 1,447 1,361 2015 2035 873 844 2014 2034 662 644 2013 2033 747 738 2012 2032 765 757 2011 2031 61 59 The Company has investment tax credit carryovers of $2,693 ($1,915 in 2020) that expire between 2036 and 2040, which are available to reduce income taxes payables in future years. |
ADDITIONAL CASH FLOW INFORMATIO
ADDITIONAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
ADDITIONAL CASH FLOW INFORMATION | |
ADDITIONAL CASH FLOW INFORMATION | 21. December 31, 2021 December 31, 2020 $ Grants receivable and other current assets 10 (111) (596) Deferred grants 10 (1,511) 1,511 Mining tax credits (1,707) (1,406) Sales taxes receivable (1,266) (68) Prepaid expenses (2,553) 85 Accounts payable and accrued liabilities 9 3,901 339 Total net change in working capital (3,247) (135) Items not affecting cash Property and equipment included in accounts payable and accrued liabilities. 5,068 944 Share issue costs included in accounts payables and accrued liabilities 49 — Shares issued for interest payment 2,697 — |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 22. December 31, 2021 December 31, 2020 $ $ Key management personnel of the Company Employee benefit expenses 1,158 1,238 Share-based payments 3,435 398 Directors of the Company Board fees 643 91 Share-based payments 2,333 305 In addition to transactions with Pallinghurst disclosed elsewhere in the financial statements and in accordance with IAS 24 Related Party Disclosures As at December 31, 2021, Pallinghurst owns 20,94% In 2021, the Company issued 297,106 shares in repayment of accrued interests of $2,697 on the convertible bond due to Pallinghurst. Pallinghurst purchased 237,932 common shares as part of the financing closed on January 20,2021, 79,311 common shares as part of the financing closed on February 12,2021 and 66,666 common shares as part of the financing closed on June 23, 2021 (see note 15.1). In October 2021, the Company issued 7,500,000 common shares following the conversion of all outstanding convertible bond held by Pallinghurst group, a related party. In addition, and pursuant to the terms of the convertible bond, the Company has elected to settle the accrued and unpaid interest of $1,900 by issuing an additional 220,471 common shares at $8.62 per share. Investissement Québec, acting as mandatory for the Government of Quebec, purchased 317,241 common shares as part of the financing closed on February 12, 2021 and purchased all of the 1,978,750 common shares issued as part of the financing closed on July 23, 2021. Severance The Company has commitments under certain management contracts with key executives. Minimum commitments under these contracts are approximately $1,554. These contracts require additional minimum payments of approximately $3,139 to be made upon the occurrence of certain events, such as a change of control. As a triggering event has not taken place, the contingent payments have not been reflected in these consolidated financial statements. |
INFORMATION DISCLOSURE ABOUT CA
INFORMATION DISCLOSURE ABOUT CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
INFORMATION DISCLOSURE ABOUT CAPITAL MANAGEMENT | |
INFORMATION DISCLOSURE ABOUT CAPITAL MANAGEMENT | 23. The Company monitors capital based on the carrying amount of equity, borrowings, leases and convertible bond which totals $110,147 as at December 31, 2021 ($12,036 as at December 31, 2020). The objective of the Company’s capital management is to preserve its ability to continue its operations and its program of acquisition, exploration, evaluation and development of mineral properties and the value-added product plant. It manages its capital structure and adjusts based on economic conditions and risk characteristics of underlying assets. The Company is not subject to externally imposed capital requirements. Changes in capital are described in the consolidated statements of changes in equity and notes 11 and 12. The properties in which the Company currently has an interest are in the development stage; as such, the Company is dependent on external financing to fund its activities. To carry out the planned development and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 24. CLASSIFICATION AND CARRYING AMOUNT OF FINANCIAL INSTRUMENTS The Company’s financial instruments as at December 31, 2021 and 2020 consist of the following: At fair value through As at December 31, 2021 profit or loss Amortized cost Total $ $ $ FINANCIAL ASSETS Cash — 62,355 62,355 Grants receivable and other current assets 10 — 3,096 3,096 Total financial assets — 65,451 65,451 FINANCIAL LIABILITIES Account payables and accrued liabilities 9 — 15,193 15,193 Borrowings 12 — 2,129 2,129 Total financial liabilities — 17,322 17,322 At fair value through As at December 31, 2020 profit or loss Amortized cost Total $ $ $ FINANCIAL ASSETS Cash — 4,520 4,520 Grants receivable and other current assets 10 — 829 829 Total financial assets — 5,349 5,349 FINANCIAL LIABILITIES Account payables and accrued liabilities 9 — 6,988 6,988 Borrowings 12 — 1,793 1,793 Convertible bond 13 — 14,505 14,505 Total financial liabilities — 23,286 23,286 FAIR VALUE Certain of the Company’s accounting policies and disclosures require the determination of fair value. Fair value represents the amount at which a financial instrument could be exchanged between willing parties, based on current markets for instruments with the same risk, principal and remaining maturity. Fair value estimates are based on quoted market values and other valuation methods. Fair values have been determined for measurement and/or disclosure purposes based on the fair value hierarchy contained in the Company’s financial instrument accounting policy. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. For all other financial assets and liabilities, their net carrying amount is a reasonable approximation of fair value given their relatively short maturities. FINANCIAL RISKS The Company is exposed to various financial risks resulting from its operations. The Company does not enter into derivative financial instruments for speculative purposes. The main financial risks to which the Company is exposed as well as its policies for managing such risk are detailed below: Liquidity risk Liquidity risk is the risk that the Company encounters difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company manages its liquidity risk by using budgets that enable it to determine the amounts required to fund its exploration, evaluation, and development expenditure programs. The Company’s liquidity and operating results may be adversely affected if the Company’s access to the capital markets or other alternative forms of financing is hindered, whether because of a downturn in stock market conditions generally or related to matters specific to the Company. The Company has historically generated cash flow primarily from its financing activities. Management believes that without additional funding, the Company does not have sufficient liquidity to pursue its planned expenditures over the next twelve months. These circumstances indicate the existence of material uncertainties that cast substantial doubt upon the Company’s ability to continue as a going concern and accordingly, the appropriateness of the use of IFRS applicable to a going concern (see note 1). As at December 31, 2021, all of the Company’s short-term liabilities totalled $15,730 ($10,587 as at December 31, 2020), have contractual maturities of less than one year and are subject to normal trade terms. The Company regularly evaluates its cash position to ensure preservation and security of capital as well as maintenance of liquidity. As at December 31, 2021 Carrying Contractual 0 to 12 12 to 24 more than amount cash flow months months 24 months Account payables and accrued liabilities 15,193 15,193 15,193 — — Lease liabilities 2,323 2,795 428 413 1,954 Borrowings 2,129 2,607 276 1,777 554 The Company has one variable lease agreement that is indexed to the consumer price index, on March 31 of each year. Credit risk Credit risk results from the possibility that a loss may occur from the failure of another party to perform according to the terms of the contract. The Company’s credit risk is primarily related to receivables and cash. The receivables consist mainly of the refund of the goods and services tax receivable from the governments of Canada and Quebec, as well as tax credits receivable from the Government of Quebec. The Company mitigates credit risk by maintaining cash with Canadian chartered banks. Currency risk Foreign currency risk is the risk that the Company’s financial performance could be affected by fluctuations in the exchange rates between currencies. Some of the Company’s expenditures are denominated in U.S dollars and since August 2021, the Company holds balances in cash denominated in U.S dollars. As such, the Company is exposed to gains or losses on foreign exchange. Currently, the Company has no hedging contracts in place and therefore has exposure to the foreign exchange rate fluctuations. The strengthening of the U.S. dollar would positively impact the Company’s net income and cash flows while the strengthening of the Canadian dollar would reduce its net income and cash flows. As at December 31, 2021 and 2020, the balances in U.S. dollars held by the Company were as follows: As at December 31, 2021 As at December 31, 2020 $ $ Cash in US dollar 11,435 — Canadian dollar equivalents 14,497 — Accounts payables in US dollar 1,044 — Canadian dollar equivalents 1,322 — Based on the balances as at December 31, 2021 2021 Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate as a result of changes in market interest rates. The Company’s interest rate risk on financial assets is primarily related to cash, which bear interest at variable rates. However, as these investments come to maturity within a short period of time, the impact would likely be not significant. Financial liabilities are not exposed to interest rate risk since they are non-interest-bearing liabilities or bear interest at a fixed rate. |
ADDITIONAL SEGMENT INFORMATION
ADDITIONAL SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
ADDITIONAL SEGMENT INFORMATION | |
ADDITIONAL SEGMENT INFORMATION | 25. Matawinie Mine Battery Material December 31, 2021 Project Plant project Corporate Total Total property, plant and equipment 18,032 18,886 5,185 42,103 Total liabilities 7,570 6,320 6,764 20,654 Matawinie Mine Battery Material December 31, 2020 Project Plant project Corporate Total Total property, plant and equipment — 1,206 3,001 4,207 Total liabilities 2,397 2,689 21,408 26,494 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS | |
COMMITMENTS | 26. In the normal course of business, the Company enters into contracts that give rise to commitments. As at December 31, 2021, the Company had issued $3,024 of purchase orders for the acquisition of assets and $2,936 in relation to the operations. Royalty The Company issued a 3% net smelter royalty over the Matawinie graphite property to Pallinghurst for an aggregate purchase price of $4,306 . For a period of three years following issuance thereof, the royalty is subject to a 1% buy back right in favour of the Company for a buy-back price of $1,306 plus an amount equal to interest accrual at a rate of 9% per annum from and after the closing of the royalty transaction up to the buyback date. Matawinie Property A large part of the property is subject to a 0.10% NSR, which can be purchased by the Company for $200. Collaboration and sharing of benefits. On January 23, 2020, the Company signed a benefit-sharing agreement with the municipality of Saint-Michel-des-Saints as part of the Matawinie mining project. Through this agreement and throughout the mine’s commercial operating life, the Company will contribute up to 2% of its net future positive cash flow after taxes to the municipality, subject to a minimum payment of $400, annually. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 27. On January 21, 2022 the Company filed a prospectus supplement establishing a new at-the-market equity offering ("ATM Offering"). The ATM Offering will allow the Company to offer for sale and issue up to US$75 million (or the equivalent in Canadian dollars) of common shares of the Company from time to time, at the Company’s discretion. The Common Shares will be distributed at the market prices prevailing at the time of the sale. From January 1, 2022 to the issuance of the financial statement, the Company granted 225,000 options to officers, 40,000 to employees, and 175,000 to consultants. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF CONSOLIDATION | 3.1 BASIS OF CONSOLIDATION The Company’s consolidated financial statements consolidate those of the parent company and its subsidiaries. The parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary, and could affect those returns through its power over the subsidiary. All transactions and balances between group companies are eliminated upon consolidation, including unrealized gains and losses on transactions between group companies. Amounts reported in the financial statements of the subsidiary have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Company. Profit and loss and other comprehensive income of subsidiaries acquired or sold during the period are recognized from the effective date of the acquisition, or up to the effective date of disposal, as applicable. Subsidiaries Information on the Company’s subsidiaries as at December 31, 2021, all of which are wholly-owned, is as follows: NAME OF SUBSIDIARY PRINCIPAL ACTIVITY COUNTRY OF INCORPORATION YEAR OF INCORPORATION Quartier Nouveau Monde Real estate company Canada 2017 Nouveau Monde Europe LTD Trading company England and Wales 2020 |
FUNCTIONAL AND REPORTING CURRENCY | 3.2 FUNCTIONAL AND REPORTING CURRENCY The Group’s consolidated financial statements are presented in Canadian dollars, which is also the functional currency of the parent company and its subsidiaries and the presentation currency. Transactions in foreign currencies are initially recorded at their functional currency spot rates at the date the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. All differences are taken to the statement of loss and comprehensive loss. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transaction. |
TAX CREDITS RECEIVABLE | 3.3 TAX CREDITS RECEIVABLE The Company is entitled to a refundable tax credit on qualified exploration expenditures incurred, refundable credit on duties for losses under the Mining Tax Act |
GRANTS RECEIVABLE | 3.4 GRANTS RECEIVABLE The Company periodically receives grants from different incentive programs. These grants are recognized initially when there is a reasonable assurance that they will be received and when the Company has intentions to comply with the conditions associated with the grant. The financial aid received for expenditures incurred is recognized against these expenditures on a systematic basis and in the same accounting period in which the expenditures are incurred. |
RESEARCH AND DEVELOPMENT COST | 3.5 RESEARCH AND DEVELOPMENT COSTS Research costs are expensed during the year in which the expenses are incurred. Development costs are capitalized when they meet the criteria for capitalization in accordance with IAS 38 Intangible Assets |
PROPERTY AND EQUIPMENT | 3.6 PROPERTY AND EQUIPMENT Property and equipment are recognized at cost less accumulated depreciation and accumulated impairment losses. The assets are capitalized and amortized on a straight-line basis in the consolidated statement of loss and comprehensive loss. Generally, the depreciation rates are as follows: Buildings 25 Equipment 5-15 Furnitures 3-7 Computers 3 Rolling Stock 5 The residual value, depreciation method and the useful life of each asset are reviewed at least at each financial year-end. Gains or losses arising on the disposal of property and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognized in the statement of loss and comprehensive loss. |
INTANGIBLE ASSETS | 3.7 INTANGIBLE ASSETS The intangible assets include software and licenses with a definite useful life. The assets are capitalized and amortized on a straight-line basis in the consolidated statement of loss and comprehensive loss. The intangible assets are assessed for impairment whenever there is an indication that the intangible assets may be impaired. Generally, the depreciation rates are as follows: Software 2 Licences 2-10 |
MATAWINIE MINE PROJECT | 3.8 MATAWINIE MINE PROJECT Management has established that effective from the beginning of the second quarter of 2021, the Matawinie mine project is in the development phase. Accordingly, all expenditures related to the development of the mine are capitalized under Mine under construction The costs related to the operation of the Matawinie Demonstration Plant will continue to be expensed as incurred under exploration and evaluation expenses Property, plant and equipment Intangible asset. |
BATTERY MATERIAL PLANT PROJECT | 3.9 BATTERY MATERIAL PLANT PROJECT Costs incurred in the construction and development of the Company’s Battery Material Plant project are capitalized under Battery Material Demonstration Plant impaired in value. The equipment and building are not yet in use as at December 31, 2021, therefore, the depreciation will begin when the assets are ready for their intended use. The costs related to the operation of the Battery Material Demonstration Plant will continue to be expensed as incurred under Battery Material Plant project expenses Property, plant and equipment Intangible asset. |
IMPAIRMENT OF NON-FINANCIAL ASSETS | 3.10 IMPAIRMENT OF NON-FINANCIAL ASSETS For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). As a result, some assets are tested individually for impairment, and some are tested at a cash-generating unit level. Whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, an asset or cash-generating unit is reviewed for impairment. An impairment loss is recognized in profit or loss for the amount by which the assets or cash-generating unit’s carrying amount exceeds its recoverable amount. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less cost to sell and its value in use. An impairment charge is reversed if the assets or cash-generating unit’s recoverable amount exceeds its carrying amount. |
INCOME TAXES | 3.11 INCOME TAXES Income tax is recognized in the 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 taxes Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year-end, adjusted for amendments to income tax payable regarding previous years. ̶ Deferred taxes Deferred tax is provided using the liability method, providing for temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The temporary difference is not provided for if it arises from the initial recognition of goodwill or the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the financial position reporting date and whose implementation is expected over the period in which the deferred tax is realized or recovered. A deferred 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 used. Assets and liabilities are offset where the entity has a legally enforceable right to offset current tax assets and liabilities or deferred tax assets and liabilities, and the respective assets and liabilities relate to income taxes levied by the same taxation authority. |
EQUITY | 3.12 EQUITY ̶ Share capital Share capital represents the amount received on the issue of shares, less issuance costs, net of any underlying tax benefit from these issuance costs. In addition, if shares were issued as consideration for the acquisition of a mineral property or some other form of non-monetary assets, they are measured at their fair value according to the quoted price on the day of the conclusion of the agreement. ̶ Contributed surplus and warrants Contributed surplus includes charges related to share options not exercised and amounts attributable to expired warrants. |
BASIC AND DILUTED LOSS PER SHARE | 3.13 BASIC AND DILUTED LOSS PER SHARE Basic loss per share is calculated by dividing the loss attributable to common equity holders of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by adjusting loss attributable to common equity holders of the Company, and the weighted average number of common shares outstanding, for the effects of all dilutive potential common shares which include convertible debt, options, broker’s options, and warrants. Dilutive potential common shares arising from option type instruments shall be deemed to have been exercised at the beginning of the period or, if later, at the date of issue of the potential common shares and the proceeds from their exercise used to repurchase common shares at the average market price. The if-converted method is used for convertible bond. |
PROVISION AND CONTINGENT LIABILITIES | 3.14 PROVISION AND CONTINGENT LIABILITIES Provisions are recognized when present legal or constructive obligations as a result of a past event will probably lead to an outflow of economic resources from the Company and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain. Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Provisions are discounted when the time value of money is significant. The Company’s operations are governed by government environment protection legislation. Environmental consequences are difficult to identify in terms of amounts, timetable and impact. As of the reporting date, management believes that the Company’s operations are in compliance with current laws and regulations. An asset retirement provision is recognized when there is constructive commitment that has resulted from past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be measured with sufficient reliability. In those cases where the possible outflow of economic resources as a result of present obligations is considered improbable or remote, no liability is recognized. Such situations are disclosed as contingent liabilities unless the outflow of resources is remote. All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. |
PROVISION FOR ASSET RETIREMENT OBLIGATION | 3.15 PROVISION FOR ASSET RETIREMENT OBLIGATION Provision for environmental rehabilitation, restructuring costs and legal claims, where applicable, is recognized when: i) The Company has a present legal or constructive obligation as a result of past events; ii) It is probable that an outflow of resources will be required to settle the obligation; iii) The amount can be reliably estimated. The provision is measured at management’s best estimate of the expenditure required to settle the obligation at the end of the reporting period, and is discounted to present value where the effect is material. The increase in the provision due to passage of time is recognized as finance costs. Changes in assumptions or estimates are reflected in the period in which they occur. Provision for environmental rehabilitation represents the legal and constructive obligations associated with the eventual closure of the Company’s property, plant and equipment. These obligations consist of costs associated with reclamation and monitoring of activities and the removal of tangible assets. The discount rate used is based on a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation, excluding the risks for which future cash flow estimates have already been adjusted. |
SHARE-BASED PAYMENTS | 3.16 SHARE-BASED PAYMENTS The Company operates an equity-settled share-based payment plan for its eligible directors, officers, employees and consultants. The Company’s plan does not feature any option for a cash settlement. All goods and services received in exchange for the grant of any share-based payments are measured at their fair values unless that fair value cannot be estimated reliably. If the Company cannot estimate reliably the fair value of the goods or services received, the Company shall measure their value indirectly by reference to the fair value of the equity instruments granted. For the transactions with employees and others providing similar services, the Company measured the fair value of the services rendered by reference to the fair value of the equity instruments granted. All equity-settled share-based payments (except broker’s options) are ultimately recognized as an expense in profit or loss with a corresponding credit to Contributed surplus, in equity. Equity-settled share-based payments to brokers, in respect of an equity financing, are recognized as issuance costs of the equity instruments with a corresponding credit to Contributed surplus, in equity. The expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognized in the current period. No adjustment is made to any expense recognized in a prior period if some vested share options are not ultimately exercised. |
FINANCIAL INSTRUMENTS | 3.17 FINANCIAL INSTRUMENTS Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through profit or loss (“FVTPL”), which are measured initially at fair value. The subsequent measurement of financial assets and financial liabilities is described below (and Note 24). Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. A financial liability is derecognized when it is extinguished, discharged, cancelled or expires. Financial assets and financial liabilities are offset, and the net amount is reported in the statement of financial position when there is an unconditional and legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. ̶ Financial assets Financial assets are initially measured at fair value. If the financial asset is not subsequently accounted for at FVTPL, then the initial measurement includes transaction costs that are directly attributable to the asset’s acquisition or origination. On initial recognition, the Company classifies its financial assets in the following measurement categories: ̶ measured subsequently at amortized cost; or ̶ measured subsequently at fair value (either through other comprehensive loss, or through net loss). i) Financial assets measured at amortized cost A financial asset is subsequently measured at amortized cost, using the effective interest method and net of any impairment loss, if: ̶ 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. ii) Financial assets measured at fair value A financial asset shall be measured at fair value through net loss unless it is measured at amortized cost or at fair value through other comprehensive loss. A financial asset shall be measured at fair value through other comprehensive loss if both of the following conditions are met: ̶ 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. For investments in debt instruments, this will thus depend on the business model in which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive loss, in which case, gains and losses will never be reclassified to net loss, and no impairment may be recognized in net loss. Dividends earned from such investments are recognized in net loss, unless the dividend clearly represents a repayment of part of the cost of the investment. ̶ Financial liabilities Financial liabilities are subsequently measured at amortized cost using the effective interest method, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value. Financial instruments – Fair value The fair value of a financial instrument is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s-length transaction. Fair values of financial instruments traded in active markets are determined based on quoted market prices, where available. For financial instruments not traded in an active market, fair values are determined based on appropriate valuation techniques. Such techniques may include discounted cash flow analysis, using recent arm’s-length market transactions, reference to the current fair value of another instrument that is substantially the same, and other valuation models. The Company applies a hierarchy to classify valuation methods used to measure financial instruments carried at fair value. Levels 1 to 3 are defined based on the degree to which fair value inputs are observable and have a significant effect on the recorded fair value, as follows: ̶ Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; ̶ Level 2: Valuation techniques use significant observable inputs, directly or indirectly, or valuations are based on quoted prices for similar instruments; and ̶ Level 3: Valuation techniques use significant inputs that are not based on observable market data (unobservable inputs). ̶ Compound instruments The convertible bond issued by the Company was a compound financial instrument which the principal amount, together with all accrued and unpaid or uncapitalized interest could be converted into a fixed number of common shares of the Company at the option of the holder. The liability component of the compound instrument was established by discounting the contractual cash flow, the remaining balance, net of the issuance cost, was allocated to the equity component of the financial instrument. ̶ Impairment of financial assets The Company assesses on a forward-looking basis the expected credit loss associated with its debt instruments carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. This assumption is used principally for cash and related balances. The Company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. An external rating of investment grade is considered to indicate that a financial instrument that may be considered as having low credit risk. The Company applies the simplified approach permitted by IFRS 9 for trade receivables and contract assets, which requires lifetime expected credit losses to be recognized from initial recognition of the receivables. The Company’s financial instruments consist of the following: FINANCIAL ASSETS CLASSIFICATION Cash Amortized cost Amounts receivable Amortized cost Grant and other receivables Amortized cost Investment Fair value through profit or loss FINANCIAL LIABILITIES CLASSIFICATION Accounts payable and accrued liabilities Amortized cost Borrowings Amortized cost Convertible bond (liability component) Amortized cost |
LEASES | 3.18 LEASES Leases are recognized as a right-of-use asset and a corresponding liability in lease liabilities at the date at which the leased asset is available for use by the Company. The lease liability is initially measured at the present value of the future lease payment, including variable lease payment that depends on an index or a rate. The lease liability is discounted using the interest rate implicit in the contract if this rate can be easily determined, otherwise, the lessee must use his marginal borrowing rate. The monthly lease payments are segregated between the principal repayment and the finance cost. The present value of the lease liability is increased to reflect the accretion of interest and decreased by the principal repayment. The accretion of interest is charged to the profit and loss over the lease period. If a change to the lease were to happen, the lease liability would be remeasured to reflect those changes (e.g., changes in the lease term or changes in the lease payment). The right-of-use assets are initially measured at cost, which includes the amount of the initial measurement of the lease liability and any lease payments made at or before the commencement date. The right-of-use assets are amortized on a straight-line basis over the duration of the lease. Rental payments under short-term leases or leases with low-value underlying assets are recorded in operating expenses on a straight-line basis over the duration of the lease. |
SEGMENT DISCLOSURE | 3.19 SEGMENT DISCLOSURE The Company currently operates in two segments: the Matawinie Mine Project and the Battery Material Plant project. The business segments presented reflect the management structure of the Company and the way in which the Company’s chief operating decision maker reviews business performance. The Matawinie Mine Project and Batterie Material Plant project were identified as separate segments due to their specific nature. Indeed, the nature of the products and services, the production processes, regulatory environment and the targeted customer are very different for each operating segment. The measure of profit or loss for each segment corresponds to the amounts reported for Exploration and evaluation expenses and Battery Material Plant project expenses, respectively, in the consolidated statement of loss and comprehensive loss. All the Company’s activities are conducted in Quebec, Canada. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of subsidiaries | Information on the Company’s subsidiaries as at December 31, 2021, all of which are wholly-owned, is as follows: NAME OF SUBSIDIARY PRINCIPAL ACTIVITY COUNTRY OF INCORPORATION YEAR OF INCORPORATION Quartier Nouveau Monde Real estate company Canada 2017 Nouveau Monde Europe LTD Trading company England and Wales 2020 |
Schedule of depreciation rates of property and equipment | Buildings 25 Equipment 5-15 Furnitures 3-7 Computers 3 Rolling Stock 5 |
Schedule of depreciation rates of intangible assets | Generally, the depreciation rates are as follows: Software 2 Licences 2-10 |
Schedule of financial instruments | FINANCIAL ASSETS CLASSIFICATION Cash Amortized cost Amounts receivable Amortized cost Grant and other receivables Amortized cost Investment Fair value through profit or loss FINANCIAL LIABILITIES CLASSIFICATION Accounts payable and accrued liabilities Amortized cost Borrowings Amortized cost Convertible bond (liability component) Amortized cost |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property and equipment | Battery Material Mine under Demonstration Plant Land Buildings Equipment Computers Furniture Rolling stock construction under construction Total $ $ $ $ $ $ $ $ $ COST Balance as at January 1, 2021 507 2,642 — 56 70 24 — 1,206 4,505 Acquisition 1,905 149 163 132 — 29 18,032 17,680 38,090 Write-Off/Disposals — — — (47) (45) — — — (92) Balance as at December 31, 2021 2,412 2,791 163 141 25 53 18,032 18,886 42,503 ACCUMULATED DEPRECIATION Balance as at January 1, 2021 — 219 — 39 32 8 — — 298 Depreciation — 111 19 30 22 7 — — 189 Write-Off/Disposals — — — (44) (43) — — — (87) Balance as at December 31, 2021 — 330 19 25 11 15 — — 400 Net book value as at December 31, 2021 2,412 2,461 144 116 14 38 18,032 18,886 42,103 Battery Material Mine under Demonstration Plant Land Buildings Equipment Computers Furniture Rolling stock construction under construction Total $ $ $ $ $ $ $ $ $ COST Balance as at January 1, 2020 467 2,430 63 47 70 9 — — 3,086 Acquisition 40 212 — 9 — 15 — 1,206 1,482 Write-Off/Disposals — — (63) — — — — — (63) Balance as at December 31, 2020 507 2,642 — 56 70 24 — 1,206 4,505 ACCUMULATED DEPRECIATION Balance as at January 1, 2020 — 118 59 14 19 4 — — 214 Depreciation — 101 2 25 13 4 — — 145 Write-Off/Disposals — — (61) — — — — — (61) Balance as at December 31, 2020 — 219 — 39 32 8 — — 298 Net book value as at December 31, 2020 507 2,423 — 17 38 16 — 1,206 4,207 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets | Software Licenses Total $ $ $ COST Balance as at January 1, 2021 16 2,562 2,578 Write-off of assets (16) (958) (974) Balance as at December 31, 2021 — 1,604 1,604 ACCUMULATED DEPRECIATION Balance as at January 1, 2021 16 1,643 1,659 Amortization — 438 438 Write-off of assets (16) (958) (974) Balance as at December 31, 2021 — 1,123 1,123 Net book value as at December 31, 2021 — 481 481 Software Licenses Total $ $ $ COST Balance as at January 1, 2020 16 2,562 2,578 Balance as at December 31, 2020 16 2,562 2,578 ACCUMULATED DEPRECIATION Balance as at January 1, 2020 7 1,045 1,052 Amortization 9 597 606 Balance as at December 31, 2020 16 1,642 1,658 Net book value as at December 31, 2020 — 920 920 |
RIGHT-OF-USE ASSETS (Tables)
RIGHT-OF-USE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RIGHT-OF-USE ASSETS. | |
Schedule of carrying amount of Right-of-use assets and the movement | Buildings Equipment Rolling stocks Total $ $ $ $ COST As at January 1, 2021 1,297 339 273 1,909 New leases 1,612 — — 1,612 End of leases (252) (339) (109) (700) Remeasurement of lease 58 — — 58 As at December 31, 2021 2,715 — 164 2,879 ACCUMULATED DEPRECIATION As at January 1, 2021 386 321 135 842 Depreciation 419 3 46 468 End of leases (252) (324) (109) (685) As at December 31, 2021 553 — 72 625 Net book value as at December 31, 2021 2,162 — 92 2,254 Buildings Equipment Rolling stocks Total $ $ $ $ COST As at January 1, 2020 457 339 158 954 New leases 840 — — 840 Remeasurement of lease — — 115 115 As at December 31, 2020 1,297 339 273 1,909 ACCUMULATED DEPRECIATION As at January 1, 2020 157 167 67 391 Depreciation 229 154 68 451 As at December 31, 2020 386 321 135 842 Net book value as at December 31, 2020 911 18 138 1,067 |
ACCOUNTS PAYABLES AND ACCRUED_2
ACCOUNTS PAYABLES AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS PAYABLES AND ACCRUED LIABILITIES | |
Schedule of accounts payable and accrued liabilities | December 31, 2021 December 31, 2020 $ $ Trade payables and accrued liabilities 13,284 4,285 Wages and benefits liabilities 1,772 1,767 Other payables 137 139 Interest payable on convertible bond — 797 Accounts payables and accrued liabilities 15,193 6,988 |
LEASE LIABILITIES (Tables)
LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LEASE LIABILITIES. | |
Schedule of lease liabilities | December 31, 2021 December 31, 2020 $ $ Opening balance 1,076 609 New liabilities and modifications of leases 1,670 955 Lease write off (15) — Principal repayment (408) (488) Ending balance 2,323 1,076 Current portion 329 295 Non-current portion 1,994 781 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS. | |
Schedule of borrowings | December 31, 2021 December 31, 2020 $ $ Opening balance 1,793 4,502 New borrowings 2,281 3,803 Repayments (2,000) (2,419) Issue costs — (21) Accretion of issue costs 9 25 Interest capitalized 46 209 Debts settled in exchange of Royalty — (4,306) Ending balance 2,129 1,793 Current portion 208 1,793 Non-current portion 1,921 — |
CONVERTIBLE BOND (Tables)
CONVERTIBLE BOND (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CONVERTIBLE BOND. | |
Schedule of convertible bond | December 31, 2021 December 31, 2020 $ $ Opening balance 14,505 — Proceeds — 15,000 Equity component of convertible bond — (364) Issue costs — (214) Conversion (14,649) — Accretion expense 144 83 Ending balance — 14,505 Current portion — — Non-current portion — 14,505 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ASSET RETIREMENT OBLIGATION | |
Schedule of asset retirement obligation | December 31, 2021 December 31, 2020 $ $ Opening balance 621 621 New obligations 383 — Accretion expense 5 — Ending balance 1,009 621 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EQUITY | |
Schedule of shares | For the year ended December 31, 2021 For the year ended December 31, 2020 Shares issued at the start of the period 27,299,332 26,178,281 Shares issued from placements 11,479,977 — Exercise of warrants 7,821,700 872,291 Exercise of options 720,201 145,000 Shares issued for conversion debt (convertible bond) 7,500,000 — Shares issued for interest payment 297,106 — Share based compensation — 103,760 Shares issued at the end of period 55,118,316 27,299,332 |
Schedule of warrants | December 31, 2021 December 31, 2020 Weighted average Weighted average exercise price exercise price Number $ Number $ Opening balance 7,853,439 2.26 2,676,614 3.80 Issued — — 7,500,000 2.20 Exercised (7,821,700) 2.25 (872,291) 3.50 Expired (31,739) 3.50 (1,450,884) 4.00 Ending balance — — 7,853,439 2.26 |
Schedule of share options | The Company’s share options are as follows for the year ended December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Weighted average Weighted average exercise price exercise price Number $ Number $ Opening balance 2,400,000 3.20 1,582,500 2.80 Granted 735,000 15.95 1,192,500 3.64 Exercised (720,201) 3.06 (145,000) 3.05 Expired (51,300) 7.00 (230,000) 2.66 Forfeited (1,250) 16.84 — — Cancelled (10,000) 16.84 — — Ending balance 2,352,249 7.07 2,400,000 3.20 Options that can be exercised 2,058,500 7.30 2,000,000 3.37 |
Schedule of the weighted average fair value of the share options granted were estimated using the Black-Scholes option pricing model | 2021 2020 Share price at date of grant $ 15.95 $ 3.64 Expected life 5 years 4.75 years Risk-free interest rate 0.82 % 0.39 % Expected volatility 67.86 % 54.68 % Expected dividend Nil Nil |
Schedule of share options issued are exercisable at the closing market price of the common shares on the day prior to their grant | December 31, 2021 Weighted average exercise price Expiration date Total number Total exercisable $ Year 2022 115,000 115,000 3.23 Year 2023 375,000 325,000 3.42 Year 2024 312,500 312,500 2.33 Year 2025 826,000 676,000 3.30 Year 2026 723,750 630,000 15.93 Ending balance 2,352,250 2,058,500 7.07 |
EXPLORATION AND EVALUATION EX_2
EXPLORATION AND EVALUATION EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EXPLORATION AND EVALUATION EXPENSES | |
Schedule of Exploration And Evaluation Expenses | December 31, 2021 December 31, 2020 $ $ Wages and benefits 3,637 2,294 Share-based compensation 452 594 Engineering 1,856 3,964 Professional fees 190 506 Materials, consumables, and supplies 1,330 1,447 Subcontracting 1,454 1,706 Geology and drilling 143 389 Utilities 349 388 Amortization 217 320 Other 213 265 Grants (36) (164) Tax credits (1,443) (1,369) Exploration and evaluation expenses 8,362 10,340 |
BATTERY MATERIAL PLANT PROJEC_2
BATTERY MATERIAL PLANT PROJECT EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BATTERY MATERIAL PLANT PROJECT EXPENSES | |
Schedule of battery material plant project expenses | December 31, 2021 December 31, 2020 $ $ Wages and benefits 754 768 Share-based compensation — 112 Engineering 4,136 2,399 Professional fees 898 866 Materials, consumables, and supplies 686 130 Subcontracting 268 475 Amortization 177 27 Other 39 43 Grants (718) (1,678) Tax credits (264) (231) Battery Material Plant project expenses 5,976 2,911 |
GENERAL AND ADMINISTRATIVE EX_2
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
GENERAL AND ADMINISTRATIVE EXPENSES. | |
Schedule of general and administrative expenses | December 31, 2021 December 31, 2020 $ $ Wages and benefits 4,883 2,920 Share-based compensation 6,224 1,323 Professional fees 2,635 1,168 Consulting fees 1,476 220 Travelling, representation and convention 627 397 Office and administration 6,747 727 Stock exchange, authorities, and communication 872 111 Depreciation and amortization 699 854 Loss on asset disposal 5 2 Other financial fees 35 48 General and administrative expenses 24,203 7,770 |
NET FINANCIAL COSTS (Tables)
NET FINANCIAL COSTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
NET FINANCIAL COSTS | |
Schedule of net financial costs | December 31, 2021 December 31, 2020 $ $ Foreign exchange loss (gain) (985) 15 Interest income (327) (40) Interest expense on lease liabilities 113 28 Accretion and interest on borrowings and bond 2,196 1,213 Accretion of issue costs 9 25 Loss of fair value on investment — 22 Net financial costs 1,006 1,263 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
Schedule of income tax expense attributable to earnings differs from the amounts computed by applying the combined federal and provincial statutory income tax rate to loss before income taxes | December 31, 2021 December 31, 2020 $ $ Loss before income taxes (39,490) (17,978) Tax recovery computed at applicable statutory tax rate 26.50 % 26.50 % Tax expense at combined statutory rate (10,465) (4,617) Increase (decrease) in income taxes resulting from: Temporary difference not recorded 8,937 4,268 Share-based payments 1,769 538 Non-deductible expenses 406 — Non-taxable mining duties (219) (217) Other (28) 28 Income tax 400 — Composition of deferred income taxes in the income statement: Taxes payable 400 — Income tax 400 — |
Schedule of temporary differences and unused tax losses for which the Company has not recognized deferred tax assets | As at December 31, 2021 and 2020, temporary differences and unused tax losses for which the Company has not recognized deferred tax assets are as follows: December 31, 2021 December 31, 2020 $ $ FEDERAL Exploration and evaluation expenses 37,787 24,034 Property and equipment 2,253 3,898 Equity investment 646 646 Asset retirement obligation 1,009 621 Share issue expenses 5,990 629 Research and development expenses 16,700 12,946 Non-capital losses 46,371 16 Other 74 30,747 110,830 73,537 PROVINCIAL Exploration and evaluation expenses 35,058 22,296 Property and equipment 2,253 3,881 Equity investment 646 646 Asset retirement obligation 1,009 621 Share issue expenses 293 629 Research and development expenses 19,447 14,427 Non-capital losses 45,943 16 Other 74 30,791 104,723 73,307 |
Schedule of accumulated non-capital losses for tax purposes which can be used to reduce taxable income in future years | As at December 31, 2021, the Company’s accumulated non-capital losses for tax purposes which can be used to reduce taxable income in future years as follows: Year incurred Expiration date Federal Provincial 2021 2040 18,535 18,515 2020 2040 10,836 10,546 2019 2039 5,381 5,457 2018 2038 4,137 4,044 2017 2037 2,526 2,578 2016 2036 1,447 1,361 2015 2035 873 844 2014 2034 662 644 2013 2033 747 738 2012 2032 765 757 2011 2031 61 59 |
ADDITIONAL CASH FLOW INFORMAT_2
ADDITIONAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ADDITIONAL CASH FLOW INFORMATION | |
Schedule of additional ash flow information | December 31, 2021 December 31, 2020 $ Grants receivable and other current assets 10 (111) (596) Deferred grants 10 (1,511) 1,511 Mining tax credits (1,707) (1,406) Sales taxes receivable (1,266) (68) Prepaid expenses (2,553) 85 Accounts payable and accrued liabilities 9 3,901 339 Total net change in working capital (3,247) (135) Items not affecting cash Property and equipment included in accounts payable and accrued liabilities. 5,068 944 Share issue costs included in accounts payables and accrued liabilities 49 — Shares issued for interest payment 2,697 — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
Schedule of directors remuneration | December 31, 2021 December 31, 2020 $ $ Key management personnel of the Company Employee benefit expenses 1,158 1,238 Share-based payments 3,435 398 Directors of the Company Board fees 643 91 Share-based payments 2,333 305 |
FINANCIAL INSTRUMENTS AND RIS_2
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | |
Schedule of financial instruments | The Company’s financial instruments as at December 31, 2021 and 2020 consist of the following: At fair value through As at December 31, 2021 profit or loss Amortized cost Total $ $ $ FINANCIAL ASSETS Cash — 62,355 62,355 Grants receivable and other current assets 10 — 3,096 3,096 Total financial assets — 65,451 65,451 FINANCIAL LIABILITIES Account payables and accrued liabilities 9 — 15,193 15,193 Borrowings 12 — 2,129 2,129 Total financial liabilities — 17,322 17,322 At fair value through As at December 31, 2020 profit or loss Amortized cost Total $ $ $ FINANCIAL ASSETS Cash — 4,520 4,520 Grants receivable and other current assets 10 — 829 829 Total financial assets — 5,349 5,349 FINANCIAL LIABILITIES Account payables and accrued liabilities 9 — 6,988 6,988 Borrowings 12 — 1,793 1,793 Convertible bond 13 — 14,505 14,505 Total financial liabilities — 23,286 23,286 |
Schedule of liquidity risk | As at December 31, 2021 Carrying Contractual 0 to 12 12 to 24 more than amount cash flow months months 24 months Account payables and accrued liabilities 15,193 15,193 15,193 — — Lease liabilities 2,323 2,795 428 413 1,954 Borrowings 2,129 2,607 276 1,777 554 |
Schedule of balances in U.S. . dollars held by entities having the Canadian dollar as their functional currency | As at December 31, 2021 and 2020, the balances in U.S. dollars held by the Company were as follows: As at December 31, 2021 As at December 31, 2020 $ $ Cash in US dollar 11,435 — Canadian dollar equivalents 14,497 — Accounts payables in US dollar 1,044 — Canadian dollar equivalents 1,322 — |
ADDITIONAL SEGMENT INFORMATION
ADDITIONAL SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ADDITIONAL SEGMENT INFORMATION | |
Schedule of segment information | Matawinie Mine Battery Material December 31, 2021 Project Plant project Corporate Total Total property, plant and equipment 18,032 18,886 5,185 42,103 Total liabilities 7,570 6,320 6,764 20,654 Matawinie Mine Battery Material December 31, 2020 Project Plant project Corporate Total Total property, plant and equipment — 1,206 3,001 4,207 Total liabilities 2,397 2,689 21,408 26,494 |
NATURE OF OPERATIONS AND GOIN_2
NATURE OF OPERATIONS AND GOING CONCERN (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
NATURE OF OPERATIONS AND GOING CONCERN | ||
Accumulated deficit | $ (116,890) | $ (77,000) |
Net loss | (39,890) | (17,978) |
Current tax credits receivable | 3,958 | 3,958 |
Cash | $ 62,355 | $ 4,520 |
BASIS OF PREPARATION AND STAT_2
BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE (Details) | Mar. 24, 2021$ / shares |
BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE | |
Average shares basic and diluted | $ 0.10 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Property and equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings | |
Property and equipment | |
Useful life (in years) | 25 years |
Equipment | Minimum | |
Property and equipment | |
Useful life (in years) | 5 years |
Equipment | Maximum | |
Property and equipment | |
Useful life (in years) | 15 years |
Furnitures | Minimum | |
Property and equipment | |
Useful life (in years) | 3 years |
Furnitures | Maximum | |
Property and equipment | |
Useful life (in years) | 7 years |
Computers | |
Property and equipment | |
Useful life (in years) | 3 years |
Rolling stocks | |
Property and equipment | |
Useful life (in years) | 5 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Software | |
INTANGIBLE ASSETS | |
Useful life (in years) | 2 years |
Licenses | Minimum | |
INTANGIBLE ASSETS | |
Useful life (in years) | 2 years |
Licenses | Maximum | |
INTANGIBLE ASSETS | |
Useful life (in years) | 10 years |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property and equipment | ||
Balance as at beginning of year | $ 4,207 | |
Balance as at ending of year | 42,103 | $ 4,207 |
Net book value | 4,207 | |
COST | ||
Property and equipment | ||
Balance as at beginning of year | 4,505 | 3,086 |
Acquisition | 38,090 | 1,482 |
Write-Off/Disposals | 92 | 63 |
Balance as at ending of year | 42,503 | 4,505 |
ACCUMULATED DEPRECIATION | ||
Property and equipment | ||
Balance as at beginning of year | (298) | (214) |
Depreciation | 189 | 145 |
Write-Off/Disposals | (87) | (61) |
Balance as at ending of year | (400) | (298) |
Land | ||
Property and equipment | ||
Balance as at ending of year | 2,412 | |
Net book value | 507 | |
Land | COST | ||
Property and equipment | ||
Balance as at beginning of year | 507 | 467 |
Acquisition | 1,905 | 40 |
Balance as at ending of year | 2,412 | 507 |
Buildings | ||
Property and equipment | ||
Balance as at ending of year | 2,461 | |
Net book value | 2,423 | |
Buildings | COST | ||
Property and equipment | ||
Balance as at beginning of year | 2,642 | 2,430 |
Acquisition | 149 | 212 |
Balance as at ending of year | 2,791 | 2,642 |
Buildings | ACCUMULATED DEPRECIATION | ||
Property and equipment | ||
Balance as at beginning of year | (219) | (118) |
Depreciation | 111 | 101 |
Balance as at ending of year | (330) | (219) |
Equipment | ||
Property and equipment | ||
Balance as at ending of year | 144 | |
Equipment | COST | ||
Property and equipment | ||
Balance as at beginning of year | 63 | |
Acquisition | 163 | |
Write-Off/Disposals | 63 | |
Balance as at ending of year | 163 | |
Equipment | ACCUMULATED DEPRECIATION | ||
Property and equipment | ||
Balance as at beginning of year | (59) | |
Depreciation | 19 | 2 |
Write-Off/Disposals | (61) | |
Balance as at ending of year | (19) | |
Computers | ||
Property and equipment | ||
Balance as at ending of year | 116 | |
Net book value | 17 | |
Computers | COST | ||
Property and equipment | ||
Balance as at beginning of year | 56 | 47 |
Acquisition | 132 | 9 |
Write-Off/Disposals | 47 | |
Balance as at ending of year | 141 | 56 |
Computers | ACCUMULATED DEPRECIATION | ||
Property and equipment | ||
Balance as at beginning of year | (39) | (14) |
Depreciation | 30 | 25 |
Write-Off/Disposals | (44) | |
Balance as at ending of year | (25) | (39) |
Furnitures | ||
Property and equipment | ||
Balance as at ending of year | 14 | |
Net book value | 38 | |
Furnitures | COST | ||
Property and equipment | ||
Balance as at beginning of year | 70 | 70 |
Write-Off/Disposals | 45 | |
Balance as at ending of year | 25 | 70 |
Furnitures | ACCUMULATED DEPRECIATION | ||
Property and equipment | ||
Balance as at beginning of year | (32) | (19) |
Depreciation | 22 | 13 |
Write-Off/Disposals | (43) | |
Balance as at ending of year | (11) | (32) |
Rolling stocks | ||
Property and equipment | ||
Balance as at ending of year | 38 | |
Net book value | 16 | |
Rolling stocks | COST | ||
Property and equipment | ||
Balance as at beginning of year | 24 | 9 |
Acquisition | 29 | 15 |
Balance as at ending of year | 53 | 24 |
Rolling stocks | ACCUMULATED DEPRECIATION | ||
Property and equipment | ||
Balance as at beginning of year | (8) | (4) |
Depreciation | 7 | 4 |
Balance as at ending of year | (15) | (8) |
Mine under construction | ||
Property and equipment | ||
Balance as at ending of year | 18,032 | |
Mine under construction | COST | ||
Property and equipment | ||
Acquisition | 18,032 | |
Balance as at ending of year | 18,032 | |
Battery Material Demonstration Plant under construction | ||
Property and equipment | ||
Balance as at ending of year | 18,886 | |
Net book value | 1,206 | |
Battery Material Demonstration Plant under construction | COST | ||
Property and equipment | ||
Balance as at beginning of year | 1,206 | |
Acquisition | 17,680 | 1,206 |
Balance as at ending of year | $ 18,886 | $ 1,206 |
PROPERTY, PLANT AND EQUIPMENT-
PROPERTY, PLANT AND EQUIPMENT- Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | ||
Amount of PPE net of grants received | $ 5,483 | $ 731 |
Percentage of NSR bought back | 1.80% | |
Amount of NSR bought back | $ 1,800 | |
Purchase of property | $ 36,984 | $ 1,269 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | |
INTANGIBLE ASSETS | ||||
Payments for the use of patents | $ 2,562 | $ 2 | ||
Reconciliation of intangible assets | ||||
Balance as at beginning of year | $ 920 | |||
Balance as at ending of year | 481 | $ 920 | ||
COST | ||||
Reconciliation of intangible assets | ||||
Balance as at beginning of year | 2,578 | 2,578 | ||
Write-off of assets | 974 | |||
Balance as at ending of year | 1,604 | 2,578 | 2,578 | |
ACCUMULATED DEPRECIATION | ||||
Reconciliation of intangible assets | ||||
Balance as at beginning of year | (1,658) | (1,052) | ||
Amortization | (438) | (606) | ||
Write-off of assets | (974) | |||
Balance as at ending of year | (1,123) | (1,658) | (1,052) | |
Software | COST | ||||
Reconciliation of intangible assets | ||||
Balance as at beginning of year | 16 | 16 | ||
Write-off of assets | 16 | |||
Balance as at ending of year | 16 | 16 | ||
Software | ACCUMULATED DEPRECIATION | ||||
Reconciliation of intangible assets | ||||
Balance as at beginning of year | (16) | (7) | ||
Amortization | (9) | |||
Write-off of assets | (16) | |||
Balance as at ending of year | (16) | (7) | ||
Licenses | ||||
Reconciliation of intangible assets | ||||
Balance as at beginning of year | 920 | |||
Balance as at ending of year | 481 | 920 | ||
Licenses | COST | ||||
Reconciliation of intangible assets | ||||
Balance as at beginning of year | 2,562 | 2,562 | ||
Write-off of assets | 958 | |||
Balance as at ending of year | 1,604 | 2,562 | 2,562 | |
Licenses | ACCUMULATED DEPRECIATION | ||||
Reconciliation of intangible assets | ||||
Balance as at beginning of year | (1,642) | (1,045) | ||
Amortization | (438) | (597) | ||
Write-off of assets | (958) | |||
Balance as at ending of year | $ (1,123) | $ (1,642) | $ (1,045) |
RIGHT-OF-USE ASSETS (Details)
RIGHT-OF-USE ASSETS (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
RIGHT-OF-USE ASSETS | ||
As at beginning of year | $ 1,067 | |
Depreciation | 213 | $ 321 |
As at ending of year | 2,254 | 1,067 |
COST | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | 1,909 | 954 |
New leases | 1,612 | 840 |
End of leases | (700) | |
Remeasurement of lease | 58 | 115 |
As at ending of year | 2,879 | 1,909 |
ACCUMULATED DEPRECIATION | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | (842) | (391) |
Depreciation | (468) | (451) |
End of leases | (685) | |
As at ending of year | (625) | (842) |
Buildings | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | 911 | |
As at ending of year | 2,162 | 911 |
Buildings | COST | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | 1,297 | 457 |
New leases | 1,612 | 840 |
End of leases | (252) | |
Remeasurement of lease | 58 | |
As at ending of year | 2,715 | 1,297 |
Buildings | ACCUMULATED DEPRECIATION | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | (386) | (157) |
Depreciation | (419) | (229) |
End of leases | (252) | |
As at ending of year | $ (553) | (386) |
Buildings | Minimum | ||
RIGHT-OF-USE ASSETS | ||
Lease term (in years) | 2 years | |
Buildings | Maximum | ||
RIGHT-OF-USE ASSETS | ||
Lease term (in years) | 5 years | |
Equipment | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | $ 18 | |
As at ending of year | 18 | |
Equipment | COST | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | 339 | 339 |
End of leases | (339) | |
As at ending of year | 339 | |
Equipment | ACCUMULATED DEPRECIATION | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | (321) | (167) |
Depreciation | (3) | (154) |
End of leases | $ (324) | |
As at ending of year | (321) | |
Equipment | Minimum | ||
RIGHT-OF-USE ASSETS | ||
Lease term (in years) | 2 years | |
Equipment | Maximum | ||
RIGHT-OF-USE ASSETS | ||
Lease term (in years) | 3 years | |
Rolling stocks | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | $ 138 | |
As at ending of year | 92 | 138 |
Rolling stocks | COST | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | 273 | 158 |
End of leases | (109) | |
Remeasurement of lease | 115 | |
As at ending of year | 164 | 273 |
Rolling stocks | ACCUMULATED DEPRECIATION | ||
RIGHT-OF-USE ASSETS | ||
As at beginning of year | (135) | (67) |
Depreciation | (46) | (68) |
End of leases | (109) | |
As at ending of year | $ (72) | $ (135) |
Rolling stocks | Minimum | ||
RIGHT-OF-USE ASSETS | ||
Lease term (in years) | 2 years | |
Rolling stocks | Maximum | ||
RIGHT-OF-USE ASSETS | ||
Lease term (in years) | 3 years |
RIGHT-OF-USE ASSETS - Additiona
RIGHT-OF-USE ASSETS - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
RIGHT-OF-USE ASSETS | ||
Depreciation | $ 213 | $ 321 |
Battery Material Plant project expenses | ||
RIGHT-OF-USE ASSETS | ||
Depreciation | $ 166 | $ 27 |
ACCOUNTS PAYABLES AND ACCRUED_3
ACCOUNTS PAYABLES AND ACCRUED LIABILITIES (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ACCOUNTS PAYABLES AND ACCRUED LIABILITIES | ||
Trade payables and accrued liabilities | $ 13,284 | $ 4,285 |
Wages and benefits liabilities | 1,772 | 1,767 |
Other payables | 137 | 139 |
Interest payable on convertible bond | 797 | |
Accounts payables and accrued liabilities | $ 15,193 | $ 6,988 |
GRANTS RECEIVABLE AND OTHER C_2
GRANTS RECEIVABLE AND OTHER CURRENT ASSETS (Details) - CAD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021 | Feb. 29, 2020 | Aug. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | |
GRANTS | |||||||
Amount of payments received | $ 1,500 | ||||||
Deferred grants | $ 1,463 | $ 3,000 | $ 213 | ||||
Grants with reasonable assurance | 380 | ||||||
Sustainable Development Technology Canada [Member] | |||||||
GRANTS | |||||||
Government grants secured | $ 4,250 | $ 4,250 | |||||
Additional grant receivables | $ 223 | ||||||
Amount of payments received | $ 2,000 | 1,191 | |||||
Increase in initial commitment (in percent) | 5.00% | ||||||
Deferred grants | $ 213 | $ 1,111 |
LEASE LIABILITIES (Details)
LEASE LIABILITIES (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
LEASE LIABILITIES. | ||
Opening balance | $ 1,076 | $ 609 |
New liabilities and modifications of leases | 1,670 | 955 |
Lease write off | (15) | |
Principal repayment | (408) | (488) |
Ending balance | 2,323 | 1,076 |
Current portion | 329 | 295 |
Non-current portion | 1,994 | 781 |
Expenses related to short term leases | $ 339 | $ 572 |
Lease Of Assets Term | 12 months |
BORROWINGS (Details)
BORROWINGS (Details) - CAD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
BORROWINGS. | |||
Opening balance | $ 1,793 | $ 4,502 | |
New borrowing | 2,281 | 3,803 | |
Repayment | $ (1,802) | (2,000) | (2,419) |
Issue costs | (21) | ||
Accretion of issue costs | 9 | 25 | |
Interest capitalized | 46 | 209 | |
Debts settled in exchange of Royalty | (4,306) | ||
Ending balance | 2,129 | 1,793 | |
Current portion | 208 | $ 1,793 | |
Non-current portion | $ 1,921 |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Details) $ in Thousands | Jun. 30, 2021CAD ($) | Aug. 28, 2020CAD ($) | Apr. 29, 2020CAD ($) | Mar. 16, 2020CAD ($) | Mar. 31, 2021CAD ($)installment | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Jan. 29, 2021CAD ($) | Jun. 27, 2019CAD ($) |
BORROWINGS | |||||||||
Interest rate (in percent) | 2.45% | ||||||||
Amount received as part of repayable contribution agreement | $ 1,803 | ||||||||
Loan value | $ 1,192 | $ 119 | |||||||
Amount of grant | 31 | ||||||||
Amount of loan reimbursed | $ 1,802 | 2,000 | $ 2,419 | ||||||
Amount of interest paid | 150 | $ 123 | |||||||
Percentage of cost of issue of loans | 1.00% | ||||||||
Prime rate | |||||||||
BORROWINGS | |||||||||
Interest rate (in percent) | 2.45% | ||||||||
Loan value | $ 611 | ||||||||
Borrowings variable interest rate | 0.07% | ||||||||
Vendor [Member] | |||||||||
BORROWINGS | |||||||||
Agreement with vendor | $ 1,137 | ||||||||
Interest rate (in percent) | 8.00% | ||||||||
Sustainable Development Technology Canada [Member] | |||||||||
BORROWINGS | |||||||||
Interest rate (in percent) | 0.00% | ||||||||
Amount received as part of repayable contribution agreement | $ 1,350 | ||||||||
Number of installments | installment | 60 | ||||||||
Discounted interest rate (in percent) | 5.50% | ||||||||
Loan value | 1,025 | ||||||||
Amount of grant | 325 | ||||||||
Pallinghurst | |||||||||
BORROWINGS | |||||||||
Percentage of royalty issued | 3.00% | ||||||||
Aggregate purchase price of royalty issued | $ 4,306 | ||||||||
Amount of promissory note | $ 2,000 | $ 2,000 | |||||||
Accrued interest | 306 | ||||||||
Interest rate (in percent) | 9.00% | ||||||||
Amount of loan reimbursed | $ 2,000 | ||||||||
Investissement Quebec | |||||||||
BORROWINGS | |||||||||
Amount of interest paid | $ 101 |
CONVERTIBLE BOND (Details)
CONVERTIBLE BOND (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONVERTIBLE BOND. | ||
Opening balance | $ 14,505 | |
Proceeds | $ 15,000 | |
Equity component of convertible bond | (364) | |
Issue costs | (214) | |
Conversion | (14,649) | |
Accretion expense | $ 144 | 83 |
Ending balance | 14,505 | |
Non-current portion | $ 14,505 |
CONVERTIBLE BOND - Additional I
CONVERTIBLE BOND - Additional Information (Details) $ / shares in Units, $ in Thousands | Jun. 23, 2021$ / shares | Jun. 23, 2021$ / shares | Feb. 12, 2021$ / shares | Jan. 20, 2021$ / shares | Sep. 01, 2020$ / shares | Oct. 31, 2021shares | Dec. 31, 2021CAD ($) |
Disclosure of classes of share capital [line items] | |||||||
Share price per share | (per share) | $ 9.22 | $ 7.50 | $ 14.50 | $ 14.50 | $ 2 | ||
Pallinghurst | |||||||
Disclosure of classes of share capital [line items] | |||||||
Shares issued for conversion debt (convertible bond) | shares | 7,500,000 | ||||||
Accrued and unpaid interest | $ | $ 306 |
ASSET RETIREMENT OBLIGATION (De
ASSET RETIREMENT OBLIGATION (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
ASSET RETIREMENT OBLIGATION | |
Opening balance | $ 621 |
New obligations | 383 |
Accretion expense | 5 |
Ending balance | $ 1,009 |
Discount rate used (in percent) | 3.62% |
Term of completion of reclamation work (in years) | 28 years |
EQUITY - Share capital (Details
EQUITY - Share capital (Details) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Millions | Jul. 23, 2021CAD ($)$ / sharesshares | Jun. 23, 2021CAD ($)$ / sharesshares | Jun. 23, 2021USD ($)$ / sharesshares | Feb. 12, 2021CAD ($)$ / sharesshares | Jan. 20, 2021CAD ($)$ / sharesshares | Sep. 01, 2020CAD ($)employee$ / sharesshares | Oct. 31, 2021shares | Jan. 31, 2021shares | Dec. 31, 2021CAD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares |
Shares issued | ||||||||||
Number of shares issued | 7,000,000 | 7,000,000 | 396,552 | 1,034,500 | 103,759 | |||||
Share price per share | (per share) | $ 9.22 | $ 7.50 | $ 14.50 | $ 14.50 | $ 2 | |||||
Number of additional shares issued | 915,000 | 915,000 | 155,175 | |||||||
Proceeds from issuance of shares | $ 64,500 | $ 52.5 | $ 5,800 | $ 15,000 | $ 208 | $ 114,242 | ||||
IFRS Number of Employees | employee | 31 | |||||||||
Gross proceeds from public offering | $ 72,900 | $ 59.4 | $ 17,250 | |||||||
Authorized share capital | ||||||||||
Share capital | ||||||||||
Par value | $ / shares | $ 0 | $ 0 | ||||||||
Shares issued | ||||||||||
Shares issued at the start of the period | 27,299,332 | 27,299,332 | 26,178,281 | |||||||
Shares issued from placements | 11,479,977 | |||||||||
Exercise of warrants | 7,821,700 | 872,291 | ||||||||
Exercise of options | 720,201 | 145,000 | ||||||||
Shares issued for conversion debt (convertible bond) | 7,500,000 | |||||||||
Shares issued for interest payment | 297,106 | |||||||||
Share based compensation | 103,760 | |||||||||
Shares issued at the end of period | 55,118,316 | 27,299,332 | ||||||||
Pallinghurst | ||||||||||
Shares issued | ||||||||||
Shares issued for interest payment | 220,471 | 297,106 | ||||||||
Number of shares issued | 66,666 | 66,666 | 79,311 | 237,932 | 7,500,000 | |||||
Investissement Quebec | ||||||||||
Shares issued | ||||||||||
Number of shares issued | 1,978,750 | 317,241 | ||||||||
Share price per share | $ / shares | $ 9.25 | |||||||||
Proceeds from issuance of shares | $ | $ 18,300 |
EQUITY - Warrants (Details)
EQUITY - Warrants (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number | ||
Opening balance | 7,853,439 | 2,676,614 |
Issued | 0 | 7,500,000 |
Exercised | (7,821,700) | (872,291) |
Expired | (31,739) | (1,450,884) |
Ending balance | 0 | 7,853,439 |
Weighted average exercise price | ||
Opening balance (in dollars per share) | $ 2.26 | $ 3.80 |
Issued (in dollars per share) | 0 | 2.20 |
Exercised (in dollars per share) | 2.25 | 3.50 |
Expired (in dollars per share) | 3.50 | 4 |
Ending balance (in dollars per share) | $ 0 | $ 2.26 |
EQUITY - Share-based payments (
EQUITY - Share-based payments (Details) | 12 Months Ended | |
Dec. 31, 2021CAD ($)YOptionstranche$ / sharesshares | Dec. 31, 2020CAD ($)OptionsY$ / sharesshares | |
Number of Options | ||
Opening balance | 2,400,000 | 1,582,500 |
Granted | 735,000 | 1,192,500 |
Exercised | (720,201) | (145,000) |
Expired | (51,300) | (230,000) |
Forfeited | (1,250) | |
Cancelled | (10,000) | |
Ending balance | 2,352,250 | 2,400,000 |
Options that can be exercised | 2,058,500 | 2,000,000 |
Weighted average exercise price | ||
Opening balance (in dollars per share) | $ / shares | $ 3.20 | $ 2.80 |
Granted (in dollars per share) | $ / shares | 15.95 | 3.64 |
Exercised (in dollars per share) | $ / shares | 3.06 | 3.05 |
Expired (in dollars per share) | $ / shares | 7 | 2.66 |
Forfeited (in dollars per share) | $ / shares | 16.84 | |
Cancelled (in dollars per share) | $ / shares | 16.84 | |
Ending balance (in dollars per share) | $ / shares | 7.07 | 3.20 |
Options that can be exercised (in dollars per share) | $ / shares | 7.30 | 3.37 |
Weighted average price at the time of exercise | $ / shares | $ 13.45 | $ 6.24 |
Number of tranches | tranche | 4 | |
Number of shares subscribed for each option | shares | 1 | 1 |
Average period (in years) | 5 years | 4 years 9 months 18 days |
Share price at date of grant | $ / shares | $ 15.95 | $ 3.64 |
Expected life | Y | 5 | 4.75 |
Risk-free interest rate | 0.82% | 0.39% |
Expected volatility | 67.86% | 54.68% |
Expected dividend | $ | ||
Total options to be granted | 10 | |
Year 2022 | ||
Number of Options | ||
Opening balance | ||
Ending balance | 115,000 | |
Options that can be exercised | 115,000 | |
Weighted average exercise price | ||
Opening balance (in dollars per share) | $ / shares | ||
Ending balance (in dollars per share) | $ / shares | $ 3.23 | |
12 to 24 months | ||
Number of Options | ||
Opening balance | ||
Ending balance | 375,000 | |
Options that can be exercised | 325,000 | |
Weighted average exercise price | ||
Opening balance (in dollars per share) | $ / shares | ||
Ending balance (in dollars per share) | $ / shares | $ 3.42 | |
Year 2024 | ||
Number of Options | ||
Opening balance | ||
Ending balance | 312,500 | |
Options that can be exercised | 312,500 | |
Weighted average exercise price | ||
Opening balance (in dollars per share) | $ / shares | ||
Ending balance (in dollars per share) | $ / shares | $ 2.33 | |
Year 2025 | ||
Number of Options | ||
Opening balance | ||
Ending balance | 826,000 | |
Options that can be exercised | 676,000 | |
Weighted average exercise price | ||
Opening balance (in dollars per share) | $ / shares | ||
Ending balance (in dollars per share) | $ / shares | $ 3.30 | |
Year 2026 | ||
Number of Options | ||
Opening balance | ||
Ending balance | 723,750 | |
Options that can be exercised | 630,000 | |
Weighted average exercise price | ||
Opening balance (in dollars per share) | $ / shares | ||
Ending balance (in dollars per share) | $ / shares | $ 15.93 | |
Officers | ||
Number of Options | ||
Granted | 245,000 | 505,000 |
Directors | ||
Number of Options | ||
Granted | 375,000 | 207,500 |
Employees | ||
Number of Options | ||
Granted | 105,000 | 285,000 |
Consultants | ||
Number of Options | ||
Granted | 10,000 | 195,000 |
EXPLORATION AND EVALUATION EX_3
EXPLORATION AND EVALUATION EXPENSES (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of attribution of expenses by nature to their function | ||
Exploration and evaluation expenses | $ 8,362 | $ 10,340 |
Exploration and evaluation expenses | ||
Disclosure of attribution of expenses by nature to their function | ||
Wages and benefits | 3,637 | 2,294 |
Share-based compensation | 452 | 594 |
Engineering | 1,856 | 3,964 |
Professional fees | 190 | 506 |
Materials, consumables, and supplies | 1,330 | 1,447 |
Subcontracting | 1,454 | 1,706 |
Geology and drilling | 143 | 389 |
Utilities | 349 | 388 |
Amortization | 217 | 320 |
Other | 213 | 265 |
Grants | (36) | (164) |
Tax credits | (1,443) | (1,369) |
Exploration and evaluation expenses | 8,362 | 10,340 |
Wages and subsidies net of grant | $ 473 | $ 892 |
BATTERY MATERIAL PLANT PROJEC_3
BATTERY MATERIAL PLANT PROJECT EXPENSES (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of attribution of expenses by nature to their function | ||
Battery Material Plant project expenses | $ 5,976 | $ 2,911 |
Battery Material Plant project expenses | ||
Disclosure of attribution of expenses by nature to their function | ||
Wages and benefits | 754 | 768 |
Share-based compensation | 112 | |
Engineering | 4,136 | 2,399 |
Professional fees | 898 | 866 |
Materials, consumables, and supplies | 686 | 130 |
Subcontracting | 268 | 475 |
Amortization | 177 | 27 |
Other | 39 | 43 |
Grants | (718) | (1,678) |
Tax credits | (264) | (231) |
Battery Material Plant project expenses | 5,976 | 2,911 |
Wages and subsidies net of grant | $ 81 | $ 189 |
GENERAL AND ADMINISTRATIVE EX_3
GENERAL AND ADMINISTRATIVE EXPENSES (Details) - CAD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of attribution of expenses by nature to their function | |||
General and administrative expenses | $ 24,203 | $ 7,770 | |
General and administrative expenses | |||
Disclosure of attribution of expenses by nature to their function | |||
Wages and benefits | 4,883 | 2,920 | |
Share-based compensation | 6,224 | 1,323 | |
Professional fees | 2,635 | 1,168 | |
Consulting fees | 1,476 | 220 | |
Travelling, representation and convention | 627 | 397 | |
Office and administration | 6,747 | 727 | |
Stock exchange, authorities, and communication | 872 | 111 | |
Depreciation and amortization | 699 | 854 | |
Loss/(gain) on asset disposal | 5 | 2 | |
Other financial fees | 35 | 48 | |
General and administrative expenses | $ 24,203 | $ 7,770 | |
Amount of settlement of litigation | $ 1,200 |
NET FINANCIAL COSTS (Details)
NET FINANCIAL COSTS (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
NET FINANCIAL COSTS | ||
Foreign exchange loss (gain) | $ (985) | $ 15 |
Interest income | (327) | (40) |
Interest expense on lease liabilities | 113 | 28 |
Accretion and interest on borrowings and bond | 2,196 | 1,213 |
Accretion of issue costs | 9 | 25 |
Loss of fair value on investment | 22 | |
Net financial costs | $ 1,006 | $ 1,263 |
INCOME TAXES - Income tax recon
INCOME TAXES - Income tax reconciliation (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | ||
Loss before income taxes | $ (39,490) | $ (17,978) |
Tax recovery computed at applicable statutory tax rate | 26.50% | 26.50% |
Tax expense at combined statutory rate | $ (10,465) | $ (4,617) |
Increase (decrease) in income taxes resulting from: | ||
Temporary difference not recorded | 8,937 | 4,268 |
Share-based payments | 1,769 | 538 |
Tax effect of renounced flow-through expenditures | 406 | |
Non-taxable mining duties | (219) | (217) |
Other | (28) | 28 |
Income tax | 400 | 0 |
Composition of deferred income taxes in the income statement: | ||
Taxes payable | 400 | |
Income tax | $ 400 | $ 0 |
FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Tax recovery computed at applicable statutory tax rate | 26.50% | |
PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Tax recovery computed at applicable statutory tax rate | 26.50% |
INCOME TAXES - Temporary differ
INCOME TAXES - Temporary differences and unused tax losses for which the Company has not recognized deferred tax assets (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
FEDERAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | $ 110,830 | $ 73,537 |
PROVINCIAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 104,723 | 73,307 |
Exploration and evaluation expenses | FEDERAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 37,787 | 24,034 |
Exploration and evaluation expenses | PROVINCIAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 35,058 | 22,296 |
Property and equipment. | FEDERAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 2,253 | 3,898 |
Property and equipment. | PROVINCIAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 2,253 | 3,881 |
Equity investment | FEDERAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 646 | 646 |
Equity investment | PROVINCIAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 646 | 646 |
Asset retirement obligation | FEDERAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 1,009 | 621 |
Asset retirement obligation | PROVINCIAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 1,009 | 621 |
Share issue expenses | FEDERAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 5,990 | 629 |
Share issue expenses | PROVINCIAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 293 | 629 |
Research and development expenses | FEDERAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 16,700 | 12,946 |
Research and development expenses | PROVINCIAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 19,447 | 14,427 |
Non-capital losses | FEDERAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 46,371 | 16 |
Non-capital losses | PROVINCIAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 45,943 | 16 |
Other | FEDERAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | 74 | 30,747 |
Other | PROVINCIAL | ||
Significant components of the unrecognized deferred tax assets and liabilities | ||
Temporary differences and unused tax losses that have not been included on the consolidated statement of financial position | $ 74 | $ 30,791 |
INCOME TAXES - accumulated non-
INCOME TAXES - accumulated non-capital losses for tax purposes (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Line Items] | ||
Investment tax credit carryovers | $ 2,693 | $ 1,915 |
2021 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 18,535 | |
2021 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 18,515 | |
2020 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 10,836 | |
2020 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 10,546 | |
2019 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 5,381 | |
2019 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 5,457 | |
2018 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 4,137 | |
2018 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 4,044 | |
2017 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 2,526 | |
2017 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 2,578 | |
2016 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 1,447 | |
2016 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 1,361 | |
2015 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 873 | |
2015 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 844 | |
2014 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 662 | |
2014 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 644 | |
2013 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 747 | |
2013 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 738 | |
2012 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 765 | |
2012 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 757 | |
2011 | FEDERAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | 61 | |
2011 | PROVINCIAL | ||
Income Tax Disclosure [Line Items] | ||
Accumulated non-capital losses | $ 59 |
ADDITIONAL CASH FLOW INFORMAT_3
ADDITIONAL CASH FLOW INFORMATION (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
ADDITIONAL CASH FLOW INFORMATION | ||
Grants receivable and other current assets | $ (111) | $ (596) |
Deferred grants | (1,511) | 1,511 |
Mining tax credits | (1,707) | (1,406) |
Sales taxes receivable | (1,266) | (68) |
Prepaid expenses | (2,553) | 85 |
Accounts payable and accrued liabilities | 3,901 | 339 |
Total net change in working capital | (3,247) | (135) |
Items not affecting cash | ||
Property and equipment included in accounts payable and accrued liabilities. | 5,068 | $ 944 |
Share issue costs included in accounts payables and accrued liabilities | 49 | |
Shares issued for interest payment | $ 2,697 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Key management personnel of the Company | ||
Employee benefit expenses | $ 1,158 | $ 1,238 |
Share-based payments | 3,435 | 398 |
Directors of the Company | ||
Board fees | 643 | 91 |
Share-based payments | $ 2,333 | $ 305 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - CAD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 23, 2021 | Jun. 23, 2021 | Feb. 12, 2021 | Jan. 20, 2021 | Sep. 01, 2020 | |
RELATED PARTY TRANSACTIONS | |||||||||
Number of shares issued | 7,000,000 | 396,552 | 1,034,500 | 103,759 | |||||
Minimum commitments under the contracts | $ 1,554 | ||||||||
Amount of additional minimum required payments to be made | $ 3,139 | ||||||||
Pallinghurst | |||||||||
RELATED PARTY TRANSACTIONS | |||||||||
Percentage of interest on issued and outstanding common shares | 20.94% | 19.18% | |||||||
Shares issued for interest payment (in shares) | 220,471 | 297,106 | |||||||
Shares issued for interest payment (price per share) | $ 8.62 | ||||||||
Accrued interest payable | $ 1,900 | $ 2,697 | |||||||
Number of shares issued | 7,500,000 | 66,666 | 79,311 | 237,932 | |||||
Investissement Quebec | |||||||||
RELATED PARTY TRANSACTIONS | |||||||||
Number of shares issued | 1,978,750 | 317,241 |
INFORMATION DISCLOSURE ABOUT _2
INFORMATION DISCLOSURE ABOUT CAPITAL MANAGEMENT - Additional Information (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
INFORMATION DISCLOSURE ABOUT CAPITAL MANAGEMENT | ||
Carrying amount of equity, borrowings, leases and convertible loans | $ 110,147 | $ 12,036 |
FINANCIAL INSTRUMENTS AND RIS_3
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Financial instruments (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
FINANCIAL ASSETS | ||
At fair value through profit or loss | $ 0 | $ 0 |
Amortized cost | 65,451 | 5,349 |
Total | 65,451 | 5,349 |
FINANCIAL LIABILITIES | ||
At fair value through profit or loss | 0 | 0 |
Amortized cost | 17,322 | 23,286 |
Total | 17,322 | 23,286 |
Account payables and accrued liabilities | ||
FINANCIAL LIABILITIES | ||
At fair value through profit or loss | 0 | 0 |
Amortized cost | 15,193 | 6,988 |
Total | 15,193 | 6,988 |
Borrowings [Member] | ||
FINANCIAL LIABILITIES | ||
At fair value through profit or loss | 0 | 0 |
Amortized cost | 2,129 | 1,793 |
Total | 2,129 | 1,793 |
Convertible Bond. | ||
FINANCIAL LIABILITIES | ||
At fair value through profit or loss | 0 | |
Amortized cost | 14,505 | |
Total | 14,505 | |
Cash. | ||
FINANCIAL ASSETS | ||
At fair value through profit or loss | 0 | 0 |
Amortized cost | 62,355 | 4,520 |
Total | 62,355 | 4,520 |
Grants receivable and other current assets | ||
FINANCIAL ASSETS | ||
At fair value through profit or loss | 0 | 0 |
Amortized cost | 3,096 | 829 |
Total | $ 3,096 | $ 829 |
FINANCIAL INSTRUMENTS AND RIS_4
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Liquidity risk (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Liquidity risk | |||
Short-term liabilities | $ 15,730 | $ 10,587 | |
Accounts payables and accrued liabilities | 15,193 | 6,988 | |
Lease liabilities | 2,323 | 1,076 | $ 609 |
Borrowings | 2,129 | $ 1,793 | $ 4,502 |
Account payables and accrued liabilities, contractual cash flows | 15,193 | ||
Lease liabilities, contractual cash flows | 2,795 | ||
Borrowings, contractual cash flows | 2,607 | ||
0 to 12 months | |||
Liquidity risk | |||
Accounts payables and accrued liabilities | 15,193 | ||
Lease liabilities | 428 | ||
Borrowings | 276 | ||
12 to 24 months | |||
Liquidity risk | |||
Lease liabilities | 413 | ||
Borrowings | 1,777 | ||
more than 24 months | |||
Liquidity risk | |||
Lease liabilities | 1,954 | ||
Borrowings | $ 554 |
FINANCIAL INSTRUMENTS AND RIS_5
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Currency risk (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Currency risk | |||
Cash | $ 62,355 | $ 4,520 | $ 4,077 |
Accounts payables | $ 15,193 | 6,988 | |
Currency risk | |||
Currency risk | |||
Percentage of increase in risk assumption | 5.00% | ||
Increase (decrease) in net earnings due possible increase in risk assumption | $ 659 | ||
Percentage of decrease in risk assumption | 5.00% | ||
Increase (decrease) in net earnings due possible decrease in risk assumption | $ 725 | ||
Currency risk | US dollar | |||
Currency risk | |||
Cash | 11,435 | 0 | |
Accounts payables | 1,044 | 0 | |
Currency risk | Canadian dollar | |||
Currency risk | |||
Cash | 14,497 | 0 | |
Accounts payables | $ 1,322 | $ 0 |
ADDITIONAL SEGMENT INFORMATIO_2
ADDITIONAL SEGMENT INFORMATION (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ADDITIONAL SEGMENT INFORMATION | ||
Total property, plant and equipment | $ 42,103 | $ 4,207 |
Total liabilities | 20,654 | 26,494 |
Exploration and evaluation expenses | ||
ADDITIONAL SEGMENT INFORMATION | ||
Total property, plant and equipment | 18,032 | |
Total liabilities | 7,570 | 2,397 |
Battery Material Plant project expenses | ||
ADDITIONAL SEGMENT INFORMATION | ||
Total property, plant and equipment | 18,886 | 1,206 |
Total liabilities | 6,320 | 2,689 |
Operating segments | ||
ADDITIONAL SEGMENT INFORMATION | ||
Total property, plant and equipment | 42,103 | 4,207 |
Total liabilities | 20,654 | 26,494 |
Corporate | ||
ADDITIONAL SEGMENT INFORMATION | ||
Total property, plant and equipment | 5,185 | 3,001 |
Total liabilities | $ 6,764 | $ 21,408 |
COMMITMENTS (Details)
COMMITMENTS (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 23, 2021 | Jan. 23, 2020 | |
COMMITMENTS | |||
Period of royalty for subject to 1% royalty buy back right | 3 years | ||
Percentage of royalty buy back right | 3.00% | ||
Price of royalty buy back right | $ 4,306,000 | ||
Percentage of royalty interest rate | 1.00% | ||
Percentage of NSR | 0.10% | ||
Amount of purchase price of tranche | $ 200 | ||
Amount of commitments related to the construction of the graphite purification demonstration plant | 1,306,000 | ||
Percentage of contribution of net future positive cash flow after taxes to the municipality | $ 2 | ||
Minimum payment | $ 400,000 | ||
Amount of purchase orders for the acquisition of PPE | 3,024,000 | ||
Amount of purchase order for operations | $ 2,936,000 | ||
Percentage of Interest Accrual | 9.00% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Jan. 01, 2022CAD ($) | Dec. 31, 2021Options | Dec. 31, 2020Options | Jan. 21, 2022USD ($) |
SUBSEQUENT EVENTS | ||||
Granted | Options | 735,000 | 1,192,500 | ||
Officers | ||||
SUBSEQUENT EVENTS | ||||
Granted | Options | 245,000 | 505,000 | ||
Employees | ||||
SUBSEQUENT EVENTS | ||||
Granted | Options | 105,000 | 285,000 | ||
Consultants | ||||
SUBSEQUENT EVENTS | ||||
Granted | Options | 10,000 | 195,000 | ||
Major ordinary share transactions | ||||
SUBSEQUENT EVENTS | ||||
Maximum amount of offer and sale of shares under ATM offering | $ | $ 75 | |||
Major ordinary share transactions | Officers | ||||
SUBSEQUENT EVENTS | ||||
Granted | $ | 225,000 | |||
Major ordinary share transactions | Employees | ||||
SUBSEQUENT EVENTS | ||||
Granted | $ | 40,000 | |||
Major ordinary share transactions | Consultants | ||||
SUBSEQUENT EVENTS | ||||
Granted | $ | 175,000 |
NET EARNINGS PER SHARE (Details
NET EARNINGS PER SHARE (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Dilutive effect under: | ||
Weighted average number of shares outstanding - Basic | 42,971,152 | 26,287,106 |
Dilutive effect under: | ||
Weighted average number of shares outstanding - Diluted | 42,971,152 | 26,287,106 |