Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2023 shares | |
Registrant CIK | 0001769697 |
Fiscal Year End | --06-30 |
Entity Address, Postal Zip Code | 00000 |
Document Period Start Date | Jul. 01, 2022 |
Document Financial Statement Error Correction | false |
Document Type | 20-F/A |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Jun. 30, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-41085 |
Entity Registrant Name | Snow Lake Resources Ltd. |
Entity Incorporation, State or Country Code | A2 |
Entity Address, Address Line One | 360 Main St 30th Floor |
Entity Address, City or Town | Winnipeg |
Entity Address, Country | CA |
Title of 12(b) Security | Common Shares, no par value |
Trading Symbol | LITM |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 18,185,810 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Business Contact | |
Entity Address, Address Line One | 360 Main St 30th Floor |
Entity Address, City or Town | Winnipeg |
Entity Address, Country | CA |
Contact Personnel Name | Frank Wheatley |
Contact Personnel Email Address | info@snowlakelithium.com |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Current Assets | ||
Cash | $ 3,840,880 | $ 23,792,408 |
Sales tax receivable | 181,197 | 294,164 |
Prepaids and deposits | 883,872 | 932,150 |
Due from related party | 10,287 | 10,287 |
Total Current Assets | 4,916,236 | 25,029,009 |
Exploration and evaluation assets | 21,442,032 | 12,077,584 |
Right-of-use assets | 60,720 | 0 |
Total Assets | 26,418,988 | 37,106,593 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 1,024,134 | 1,182,449 |
Due to related parties | 86,616 | 110,274 |
Loan payable | 0 | 201,157 |
Lease liabilities - current portion | 29,921 | 0 |
Derivative liabilities | 1,922,246 | 286,997 |
Other liabilities | 820,612 | 0 |
Total Current Liabilities | 3,883,529 | 1,780,877 |
Lease liabilities | 31,107 | 0 |
Total Liabilities | 3,914,636 | 1,780,877 |
Shareholders' Equity | ||
Share capital | 40,570,773 | 39,733,633 |
Reserve for restricted share units | 86,638 | 0 |
Reserve for share-based payments | 6,477,565 | 6,067,323 |
Reserve for warrants | 65,099 | 70,295 |
Accumulated deficit | (24,695,723) | (10,545,535) |
Total Shareholders' Equity | 22,504,352 | 35,325,716 |
Total Liabilities and Shareholders' Equity | $ 26,418,988 | $ 37,106,593 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss | 12 Months Ended | |||||
Jun. 30, 2023 $ / shares | Jun. 30, 2023 CAD ($) shares | Jun. 30, 2022 $ / shares | Jun. 30, 2022 CAD ($) shares | Jun. 30, 2021 $ / shares | Jun. 30, 2021 CAD ($) shares | |
Expenses | ||||||
Professional fees | $ 6,971,520 | $ 698,209 | $ 174,211 | |||
Directors' and officers' consulting fees | 3,840,915 | 687,585 | 200,858 | |||
Stock-based compensation | 2,630,249 | 8,035,506 | 0 | |||
Insurance expense | 924,834 | 681,504 | 0 | |||
Consulting fees | 858,517 | 220,890 | 34,399 | |||
General and administrative expenses | 518,824 | 129,415 | 8,254 | |||
Travel expenses | 248,746 | 112,074 | 0 | |||
Transfer agent and regulatory fees | 141,446 | 236,926 | 22,244 | |||
Bank fees and interest | 13,577 | 9,343 | 2,084 | |||
Research expenses | 12,000 | 33,733 | 0 | |||
Depreciation on right-of-use assets | 2,640 | 0 | 0 | |||
Interest on loan and debentures | 1,193 | 167,873 | 140,264 | |||
Amortization of transaction costs | 0 | 56,512 | 13,284 | |||
Accretion expense | 654 | 0 | 0 | |||
Total Expenses | (16,165,115) | (11,069,570) | (595,598) | |||
Other Items | ||||||
(Loss) gain on change in fair value of derivative liabilities | (246,460) | 1,103,839 | 32,676 | |||
Loss on shares-for-debt settlement | (157,502) | 0 | 0 | |||
Grant income | 109,750 | 109,745 | 0 | |||
Recovery of accounts payable | 0 | 0 | 10,740 | |||
Foreign exchange gain (loss) | 996,382 | 409,532 | (254) | |||
Total other income | 702,170 | 1,623,116 | 43,162 | |||
Net Loss and Comprehensive Loss | $ (15,462,945) | $ (9,446,454) | $ (552,436) | |||
Weighted Average Number of Outstanding Shares | ||||||
Basic and diluted (Note 19) | shares | 18,033,851 | 15,884,041 | 13,008,669 | |||
Net Loss per Share | ||||||
Basic and diluted (Note 19) | $ / shares | $ (0.85) | $ (0.6) | $ (0.04) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD ($) | Issued capital | Reserve of share-based payments | Warrants Reserve | Retained earnings | Reserve of change in value of time value of options | Total |
Number of shares outstanding at beginning of period at Jun. 30, 2020 | 13,008,006 | |||||
Equity at beginning of period at Jun. 30, 2020 | $ 5,745,369 | $ 1,154,905 | $ 26,439 | $ (1,719,088) | $ 0 | $ 5,207,625 |
Exercise of Warrants | 2,170 | |||||
Increase (decrease) through exercise of warrants, equity | $ 4,883 | 4,883 | ||||
Increase (decrease) through conversion of convertible instruments, equity | 90,769 | 90,769 | ||||
Issue of convertible instruments | 2,025 | 2,025 | ||||
Net loss for the year | (552,436) | 552,436 | ||||
Net loss for the year | 552,436 | (552,436) | ||||
Number of shares outstanding at end of period at Jun. 30, 2021 | 13,010,176 | |||||
Equity at end of period at Jun. 30, 2021 | $ 5,750,252 | 1,154,905 | 119,233 | (2,271,524) | 0 | 4,752,866 |
Exercise of Warrants | 243,419 | |||||
Increase (decrease) through exercise of warrants, equity | $ 419,946 | (54,833) | 365,113 | |||
Net loss for the year | (9,446,454) | 9,446,454 | ||||
Net loss for the year | 9,446,454 | (9,446,454) | ||||
Number of shares outstanding at end of period at Jun. 30, 2022 | 17,924,758 | |||||
Equity at end of period at Jun. 30, 2022 | $ 39,733,633 | 6,067,323 | 70,295 | (10,545,535) | 0 | 35,325,716 |
Increase (decrease) in number of ordinary shares issued | 3,680,000 | |||||
Increase (decrease) through change in equity of subsidiaries, equity | $ 34,988,520 | 34,988,520 | ||||
Share issue related cost | $ (4,233,129) | (4,233,129) | ||||
Issuance of Conversion of Debentures (in Shares) | 751,163 | |||||
Issuance of Conversion Of Debenture | $ 857,399 | 5,895 | 863,294 | |||
Issuance of Shares on Vesting of RSUs Shares | 240,000 | |||||
Issue of equity | $ 1,950,645 | (1,950,645) | 0 | |||
Increase (decrease) through share-based payment transactions, equity | 6,084,861 | 1,950,645 | 8,035,506 | |||
Cancellation of Stock Options | (1,172,443) | 1,172,443 | 0 | |||
Exercise of Warrants | 21,052 | |||||
Increase (decrease) through exercise of warrants, equity | $ 36,774 | (5,196) | 31,578 | |||
Net loss for the year | (15,462,945) | 15,462,945 | ||||
Net loss for the year | 15,462,945 | (15,462,945) | ||||
Number of shares outstanding at end of period at Jun. 30, 2023 | 18,185,810 | |||||
Equity at end of period at Jun. 30, 2023 | $ 40,570,773 | 6,477,565 | $ 65,099 | (24,695,723) | 86,638 | 22,504,352 |
Issuance of Shares on Vesting of RSUs Shares | 470,000 | |||||
Issue of equity | (209,422) | |||||
Increase (decrease) through share-based payment transactions, equity | 1,722,999 | $ 86,638 | 1,809,637 | |||
Cancellation of Stock Options | $ (1,312,757) | $ 1,312,757 | 0 | |||
Issuance of shares on debt settlement, shares | 240,000 | |||||
Issuance of shares on debt settlement | $ 800,366 | $ 800,366 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities | |||
Net loss for the year | $ (15,462,945) | $ (9,446,454) | $ (552,436) |
Adjustments for non-cash items | |||
Depreciation on right-of-use assets | 2,640 | 0 | 0 |
Interest expenses and accretion | 1,841 | 148,406 | 140,264 |
Amortization of transaction costs | 0 | 56,512 | 13,284 |
Issuance of warrants for investor relations services | 409,495 | 0 | 0 |
Issuance of warrants for claims settlement | 979,294 | 0 | 0 |
Loss (gain) on change in fair value of derivative liabilities | 246,460 | (1,103,839) | (32,676) |
Loss on shares-for-debt settlement | 157,502 | 0 | 0 |
Stock-based compensation | 2,630,249 | 8,035,506 | 0 |
Recovery of accounts payable | 0 | 0 | (10,740) |
Foreign exchange gain | (812) | (14,000) | 0 |
Total adjustments for non-cash items | (11,036,276) | (2,323,869) | (442,304) |
Net change in non-cash working capital items | |||
Sales tax receivable | 112,967 | (283,520) | (47) |
Prepaids and deposits | 66,645 | (864,177) | (67,179) |
Accounts payable and accrued liabilities | 581,531 | 552,249 | 84,360 |
Due to related party | (23,658) | (179,655) | 61,694 |
Cash Flows (used in) Operating Activities | (10,298,791) | (3,098,972) | (363,476) |
Financing Activities | |||
Proceeds from issuance of convertible debentures | 0 | 0 | 805,000 |
Proceeds from issuance of shares on IPO | 0 | 34,988,520 | 0 |
Share issuance costs | 0 | (2,995,448) | 0 |
Proceeds received from loan | 0 | 873,253 | 0 |
Repayment on loan | (201,532) | (679,617) | 0 |
Proceeds from exercise of warrants | 31,578 | 365,114 | 4,883 |
Payments made on lease deposit | (18,367) | 0 | 0 |
Lease payments | (2,986) | 0 | 0 |
Cash Flows provided by (used in) Financing Activities | (191,307) | 32,551,822 | 809,883 |
Investing Activities | |||
Payments for exploration and evaluation assets | (9,461,430) | (5,979,286) | (270,652) |
Cash Flows (used by) Investing Activities | (9,461,430) | (5,979,286) | (270,652) |
(Decrease) increase | (19,951,528) | 23,473,564 | 175,755 |
Cash, beginning of year | 23,792,408 | 318,844 | 143,089 |
Cash, end of year | 3,840,880 | 23,792,408 | 318,844 |
Supplemental Information | |||
Exploration and evaluation assets in accounts payable | $ 388,107 | $ 485,089 | $ 117,015 |
1. Nature of Operations and Goi
1. Nature of Operations and Going Concern | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
1. Nature of Operations and Going Concern | 1. Nature of Operations and Going Concern Snow Lake Resources Ltd., d/b/a Snow Lake Lithium Ltd. (“Snow Lake” or the “Company”) was incorporated in the Province of Manitoba, Canada, under the Corporations Act (Manitoba) th On November 22, 2021, the Company was listed for trading under the NASDAQ Composite under the ticker symbol “LITM”. On November 23, 2021, the Company closed its initial public offering (“IPO”) through the issuance of 3,680,000 common shares, at a price of $9.51 (USD $7.50) per share for gross proceeds of $34,988,520 (USD $27,600,000). Although the Company has taken steps to verify title to the mineral properties in which it has an interest, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title. Property title may be subject to government licensing requirements or regulations, unregistered prior agreements, undetected defects, unregistered claims, native land claims, and non-compliance with regulatory and environmental requirements. For the year ended June 30, 2023, the Company incurred a net loss of $15,462,945 (2022 – $9,446,454; 2021 – $552,436) and negative cash flow from operations of $10,298,791 (2022 – $3,098,972; 2021 – $363,476), and as at June 30, 2023, the Company had an accumulated deficit of $24,695,723 (June 30, 2022 – $10,545,535; June 30, 2021 – accumulated deficit of $2,271,524). The Company has not yet placed any of its mineral properties into production and, as a result, the Company has no source of operating cash flow. The Company’s ability to continue as a going concern is dependent upon the Company achieving profitable operations to generate sufficient cash flows to fund continuing operations, or, in the absence of adequate cash flows from operations, obtaining additional financing to support operations for the foreseeable future. It is not possible to predict whether financing efforts will be successful or if the Company will attain profitable levels of operations. These conditions, and the unpredictability of the mining business, represent material uncertainties which may cast significant doubt upon the Company’s ability to continue as a going concern. These consolidated financial statements have been prepared on the basis that the Company will continue as a going concern, and do not reflect the adjustments to the carrying values of assets and liabilities and the reported revenues and expenses, and classifications of statements of financial position that would be necessary if the Company were unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material. |
2. Restatement of Previously Re
2. Restatement of Previously Reported Consolidated Financial Statements | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
2. Restatement of Previously Reported Consolidated Financial Statements | 2. Restatement of Previously Reported Consolidated Financial Statements Subsequent to the issuance of the previously reported consolidated financial statements for the year ended June 30, 2023 (filed on EDGAR on October 31, 2023), it was determined that the grant of certain restricted share units (“RSUs”) was incorrectly classified under equity as at June 30, 2023. The correct treatment of these RSUs should be a classification as liability on the consolidated statements of financial position, to be measured at fair value at the end of each reporting period (see Note 14 for details). The incorrect classification caused an overstated balance for reserve for RSUs by $735,268, an understated balance for other liabilities by $820,612, and an understated stock-based compensation amount of $85,344, which caused the net loss and comprehensive loss for the year ended June 30, 2023 to be misstated As a result of the corrections, certain balances on the consolidated statement of financial position as at June 30, 2023, and the consolidated statement of loss and comprehensive loss, changes in shareholders’ equity and cash flows for the year ended June 30, 2023 were also affected. 2. Restatement of Previously Reported Consolidated Financial Statements (continued) Line items on the amended and restated consolidated statement of financial position as at June 30, 2023, and the consolidated statement of loss and comprehensive loss, changes in shareholders’ equity and cash flows are as follows: Consolidated Statement of Financial Position and Changes in Shareholders’ Equity Previously reported Adjustments Restated $ $ $ Liabilities Other liabilities - 820,612 820,612 Total Current Liabilities 3,062,917 820,612 3,883,529 Total Liabilities 3,094,024 820,612 3,914,636 Shareholders’ Equity Reserve for restricted share units 821,906 (735,268) 86,638 Accumulated deficit (24,610,379) (85,344) (24,695,723) Total Shareholders’ Equity 23,324,964 (820,612) 22,504,352 Consolidated Statement of Loss and Comprehensive Loss Previously reported Adjustments Restated $ $ $ Expenses Stock-based compensation 2,544,905 85,344 2,630,249 Total Expenses (16,079,771) (85,344) (16,165,115) Net Loss and Comprehensive Loss (15,377,601) (85,344) (15,462,945) Consolidated Statement of Cash Flows Previously reported Adjustments Restated $ $ $ Operating Activities Net loss for the year (15,377,601) (85,344) (15,462,945) Stock-based compensation 2,544,905 85,344 2,630,249 |
3. Basis of Presentation
3. Basis of Presentation | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
3. Basis of Presentation | 3. Basis of Presentation (a) Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The accounting policies set out below were consistently applied to all periods presented unless otherwise noted. These consolidated financial statements were reviewed, approved and authorized for issuance by the Board of Directors (the “Board”) of the Company on March 19, 2024. 3. Basis of Presentation (continued) (b) Basis of Measurement These consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments carried at fair value, as explained in the accounting policies as set out in Note 4. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. (c) Basis of Consolidation Subsidiaries consist of entities over which the Company is exposed to, or has rights to, variable returns as well as the ability to affect those returns through the power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date control is transferred to the Company and are-deconsolidated from the date control ceases. The consolidated financial statements include all the assets, liabilities, revenues, expenses and cash flows of the Company and its subsidiaries after eliminating inter-entity balances and transactions. (d) Functional Currency These consolidated financial statements are presented in Canadian dollars (“$” or “CAD”), which is the Company’s functional currency. The functional currency is the currency of the primary economic environment in which the Company operates. (e) Significant Accounting Judgments and Estimates The preparation of these consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, revenue, and expenses. On an ongoing basis, management evaluates its judgments and estimates in relation to assets, liabilities, revenue, and expenses. Management uses historical experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgments and estimates. Actual outcomes may differ from these estimates under different assumptions and conditions. These estimates are reviewed periodically, and adjustments are made as appropriate in the period they become known. Items for which actual results may differ materially from these estimates are described as follows: Going concern At each reporting period, management exercises judgment in assessing the Company’s ability to continue as a going concern by reviewing the Company’s performance, resources, and future obligations. The conclusion that the Company will be able to continue as a going concern is subject to critical judgments of management with respect to assumptions surrounding the short and long-term operating budgets, expected profitability, investment and financing activities and management’s strategic planning. The assumptions used in management’s going concern assessment are derived from actual operating results along with industry and market trends. Management believes there is sufficient capital to meet the Company’s business obligations for at least the next 12 months, after taking into account expected cash flows and the Company's cash position at year-end. Fair value of financial assets and financial liabilities Fair value of financial assets and financial liabilities on the consolidated statements of financial position that cannot be derived from active markets, are determined using a variety of techniques including the use of valuation models. The inputs to these models are derived from observable market data where possible, but where observable market data are not available, judgment is required to establish fair values. Judgments include, but are not limited to, consideration of model inputs such as volatility, estimated life and discount rates. 3. Basis of Presentation (continued) (e) Significant Accounting Judgments and Estimates (continued) Economic recoverability of future economic benefits of exploration and evaluation assets Management has determined that exploration and evaluation (“E&E”) assets and related costs incurred, which have been recognized on the consolidated statements of financial position, are economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefit including geological data, scoping studies, accessible facilities, and existing and future permits. Technical feasibility and commercial viability Management exercises judgment, in accordance with IFRS 6 – Exploration for and Evaluation of Mineral Resources (“IFRS 6”), to determine an accounting policy specifying which expenditures, if any, are capitalized as E&E assets, and to apply the policy consistently. E&E expenditures not capitalized as E&E assets are expensed as incurred. Once the technical feasibility and commercial viability of extracting a mineral resource are demonstrable, an entity stops recording E&E expenditures for that mineral project, tests capitalized E&E assets (if any) for impairment and reclassifies those E&E assets to other applicable development-stage accounts. An assessment of technical feasibility and commercial viability is conducted on a project-by-project basis with regard to all relevant facts and circumstances. The nature and status of the mineral project is determined on the merits of the mineral project itself. Provisions Provisions recognized in the consolidated financial statements involve judgments on the occurrence of future events, which could result in a material outlay for the Company. In determining whether an outlay will be material, the Company considers the expected future cash flows based on facts, historical experience and probabilities associated with such future events. Uncertainties exist with respect to estimates made by management and as a result, the actual expenditure may differ from amounts currently reported. Income taxes Income taxes and tax exposures recognized in the consolidated financial statements reflect management’s best estimate of the outcome based on facts known at the reporting date. When the Company anticipates a future income tax payment based on its estimates, it recognizes a liability. The difference between the expected amount and the final tax outcome has an impact on current and deferred taxes when the Company becomes aware of this difference. In addition, when the Company incurs losses that cannot be associated with current or past profits, it assesses the probability of taxable profits being available in the future based on its budgeted forecasts. These forecasts are adjusted to take account of certain non-taxable income and expenses and specific rules on the use of unused credits and tax losses. When the forecasts indicate the sufficient future taxable income will be available to deduct the temporary differences, a deferred tax asset is recognized for all deductible temporary differences. Options, restricted share units and warrants Options, RSUs and warrants, including finders’ warrants, are initially recognized at fair value using market-based valuation techniques. The fair value of the market-based and performance-based share awards are determined at the date of grant using generally accepted valuation techniques. Assumptions are made and judgments are used in applying the valuation techniques. These assumptions and judgments include the expected volatility of the share price, expected forfeitures, expected dividend yield, expected term of the warrants or options, and expected risk-free interest rate. Such assumptions and judgments are inherently uncertain. Changes in these assumptions can affect the fair value estimates of stock-based compensation. 3. Basis of Presentation (continued) (e) Significant Accounting Judgments and Estimates (continued) Expected credit losses on financial assets Determining an allowance for expected credit losses (“ECL”) for amounts receivable and all debt financial assets not held at fair value through profit or loss (“FVTPL”) requires management to make assumptions about the historical patterns for the probability of default, the timing of collection and the amount of incurred credit losses, which are adjusted based on management’s judgment about whether economic conditions and credit terms are such that actual losses may be higher or lower than what the historical patterns suggest. Functional currency The functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which they operate. Determination of functional currency involves significant judgments and other entities may make different judgments based on similar facts. Periodically, the Company reconsiders the functional currency of its business if there is a change in the underlying transactions, events or conditions which determine its primary economic environment. Shares issued for non-cash consideration The Company is required to recognize these transactions at fair value which requires judgment in selecting valuation techniques and other factors. |
4. Summary of Significant Accou
4. Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
4. Summary of Significant Accounting Policies | 4. Summary of Significant Accounting Policies (a) Current and Non-Current Classification Assets and liabilities are presented in the consolidated statements of financial position based on current and non-current classification. An asset is classified as current when it is either expected to be realized or intended to be sold or consumed in the normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realized within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when it is either expected to be settled in the normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. (b) Cash Cash in the consolidated statements of financial position comprises cash at a chartered bank in Canada and funds held in trust with the Company’s legal counsels which is available on demand. (c) Exploration and Evaluation Assets Title to E&E assets including mineral properties involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing historical characteristic of many properties. The Company has investigated title to all its mineral properties and, to the best of its knowledge, titles to all its mineral properties are in good standing. 4. Summary of Significant Accounting Policies (continued) (c) Exploration and Evaluation Assets (continued) The Company accounts for E&E assets in accordance with IFRS 6. Once the legal right to explore a property has been acquired, costs directly related to exploration and evaluation are recognized and capitalized, in addition to acquisition costs. These expenditures include but are not limited to acquiring licenses, researching and analyzing existing exploration data, conducting geological studies, exploration drilling and sampling and payments made to contractors and consultants in connection with the exploration and evaluation of the property. Costs not directly attributable to E&E activities, including general administrative overhead costs, are expensed in the period in which they occur. Acquisition costs incurred in obtaining legal right to explore a mineral property are deferred until the legal right is granted and thereon reclassified to mineral properties. Transaction costs incurred in acquiring an asset are deferred until the transaction is completed and then included in the purchase price of the asset acquired. When a project is deemed to no longer have commercially viable prospects to the Company, E&E expenditures in respect of that project are deemed to be impaired. As a result, those E&E expenditure costs, in excess of the estimated recoverable amount, are written off to the consolidated statements of loss and comprehensive loss. The Company assesses E&E assets for impairment when facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to sell (“FVLCS”) and value-in-use (“VIU”). Once the technical feasibility and commercial viability of extracting the mineral resource has been determined, the property is considered a mine under development. E&E assets are also tested for impairment before the assets are transferred to development properties. As the Company currently has no operational income, any incidental revenues earned in connection with exploration activities are applied as a reduction to capitalized exploration costs. (d) Financial Instruments The Company classifies and measures financial instruments in accordance with IFRS 9 – Financial Instruments (“IFRS 9”). A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Classification The Company classifies its financial assets in the following measurement categories: (a) those to be measured subsequently at FVTPL; (b) those to be measured subsequently at fair value through other comprehensive income (loss) (“FVTOCI”); and (c) those to be measured at amortized cost. The classification of financial assets depends on the business model for managing the financial assets and the contractual terms of the cash flows. Financial liabilities are classified as those to be measured at amortized cost unless they are designated as those to be measured subsequently at FVTPL (irrevocable election at the time of recognition). The Company’s financial assets include cash, other receivables excluding any sales tax amounts, and due from related party. The Company’s financial liabilities include its accounts payable, due to related parties, loan payable, lease liabilities, derivative liabilities and other liabilities. 4. Summary of Significant Accounting Policies (continued) (d) Financial Instruments (continued) Classification (continued) Fair value through profit or loss This category includes derivative instruments as well as quoted equity instruments which the Company has not irrevocably elected, at initial recognition or transition, to classify at FVTOCI. This category would also include debt instruments whose cash flow characteristics do not meet the solely payment of principal and interest (“SPPI”) criterion or are not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell. Financial assets in this category are recorded at fair value with changes recognized in the consolidated statements of loss and comprehensive loss. Financial assets at fair value through other comprehensive income Debt and equity instruments that are held for collection of contractual cash flows and for sale, and where the assets’ cash flows represent solely payments of principal and interest, are classified as FVTOCI. Movements in fair values are recognized in other comprehensive income (“OCI”) and accumulated in fair value reserve, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses, which are recognized in profit and loss. When the financial asset is derecognized, the cumulative gain or loss recognized in OCI is reclassified from equity to profit or loss and presented in “other gains and losses”. Interest income from these financial assets is recognized using the effective interest rate method and presented in “interest income”. As at June 30, 2023 and 2022, the Company did not have any financial assets at FVTOCI. Amortized cost Debt and equity instruments that are held for collection of contractual cash flows where those cash flows represent SPPI are measured at amortized cost. Interest income from these financial assets is included in interest income using the effective interest rate method. The Company’s classification of financial assets and financial liabilities is summarized below: Cash FVTPL Due to/from related parties Amortized cost Accounts payable Amortized cost Loan payable Amortized cost Lease liabilities Amortized cost Derivative liabilities FVTPL Other liabilities FVTPL Measurement All financial instruments are required to be measured at fair value on initial recognition, plus, in the case of a financial asset or financial liability not at FVTPL, transaction costs that are directly attributable to the acquisition or issuance of the financial asset or financial liability. Transaction costs of financial assets and financial liabilities carried at FVTPL are expensed in profit or loss. Financial assets and financial liabilities with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. 4. Summary of Significant Accounting Policies (continued) (d) Financial Instruments (continued) Measurement (continued) Financial assets that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortized cost at the end of the subsequent accounting periods. All other financial assets, including equity investments, are measured at their fair values at the end of subsequent accounting periods, with any changes taken through profit and loss or OCI (irrevocable election at the time of recognition). For financial liabilities measured subsequently at FVTPL, changes in fair value due to credit risk are recorded in OCI. Expected credit loss impairment model Under IFRS 9, the Company recognizes a provision for ECL on financial assets that are measured on amortized cost. The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company in full or when the financial asset is more than 90 days past due. The carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts. Derecognition The Company derecognizes financial assets only when the contractual rights to cash flow from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Gains or losses on derecognition are generally recognized in profit or loss. Determination of fair value The determination of fair value requires judgment and is based on market information, where available and appropriate. The Company classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. (e) Impairment of Assets At each reporting date, the Company reviews the carrying amounts of its assets to determine whether there are any indicators of impairment. If any such indicator exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. Where the asset does not generate cash inflows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit (“CGU”) to which the asset belongs. Any intangible asset with an indefinite useful life is tested for impairment annually and whenever there is an indication that the asset may be impaired. An asset’s recoverable amount is the higher of FVLCS and VIU. In assessing VIU, the estimated future cash flows are discounted to their present value, using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted. 4. Summary of Significant Accounting Policies (continued) (e) Impairment of Assets (continued) If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount is reduced to the recoverable amount and an impairment loss is recognized immediately in the consolidated statements of loss and comprehensive loss. Where an impairment subsequently reverses, the carrying amount is increased to the revised estimate of recoverable amount but only to the extent that this does not exceed the carrying value that would have been determined if no impairment had previously been recognized. A reversal of impairment is recognized in the consolidated statements of loss and comprehensive loss. (f) Impairment of Non-Financial Assets Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s FVLCS and VIU. The VIU is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or CGU to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a CGU. (g) Leased Assets The Company is party to a lease of a mining analyzer which is used for its E&E activities. The Company assesses service arrangements to determine if an asset is explicitly or implicitly specified in the agreement and if it has the right to control the use of the identified asset. At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company then recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. The ROU asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The assets are depreciated to the earlier of the end of the useful life of the ROU asset or the lease term using the straight-line method. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. The Company elected to recognize expenses for leases with a term of 12 months or less on a straight-line basis over the lease term and lease of assets of low value, and not to recognize these short-term leases on the consolidated statements of financial position. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Company’s incremental borrowing rate, which was determined to be about 14%. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, if there is a change in future lease payments arising from a change in an index or rate, or if the Company changes its assessment whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured, the amount of the remeasurement is recognized as a corresponding adjustment to the carrying amount of the ROU asset or is recorded in profit or loss if the carrying amount of the ROU asset has been reduced to zero. 4. Summary of Significant Accounting Policies (continued) (h) Provisions A provision is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. (i) Income Taxes Income tax expense consists of current and deferred tax expense. Current and deferred tax are recognized in profit or loss except to the extent that it relates to items recognized directly in equity or OCI. Current income tax is recognized and measured at the amount expected to be recovered from, or payable to, the taxation authorities based on the income tax rates enacted or substantively enacted at the end of the reporting period and includes any adjustment to taxes payable in respect of previous years. Deferred tax is recorded for temporary differences at the date of the consolidated statements of financial position between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of a deferred tax asset is reviewed at the end of the reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at the end of the reporting period and are recognized to the extent that it has become probable that future taxable Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the end of the reporting period. Deferred tax assets and deferred tax liabilities are offset if, and only if, they relate to income taxes levied by the same taxation authority and the Company has the legal rights and intent to offset. Estimates Provisions for taxes are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these provisions at the end of the reporting period. However, it is possible that at some future date an additional liability could result from audits by taxing authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will affect the tax provisions in the period in which such determination is made. (j) Share Capital Common shares are classified as share capital. Costs directly attributable to the issue of common shares are recognized as a deduction from share capital, net of any tax effects. 4. Summary of Significant Accounting Policies (continued) (k) Share-Based Payments Transactions The Company operates a stock option plan (the “Option Plan”). Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received, or at the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured and are recorded at the date the goods or services are received. The fair value of options is determined based on the application of the Black-Scholes valuation model (“Black-Scholes”). The fair value of equity-settled stock-based compensation transactions is recognized as an expense with a corresponding increase in the share-based payments reserve. If share-settled awards are modified, as a minimum an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. Amounts recorded for cancelled or expired unexercised options are transferred to accumulated deficit in the period of which the cancellation or expiry occurs. The Company also operates a RSUs Plan, where RSUs are granted to directors, employees and consultants from time to time. RSUs are measured at the fair value of the date of grant, based on the closing price of the Company’s common shares on the date of grant. The fair value of stock-based compensation on RSUs is recognized as an expense with a corresponding increase in the reserve for RSUs over the vesting period. From time to time, the Company may also grant RSUs with a put right option, which provides the grantee with the right (the “Put Right Option”), but not the obligation to cause the Company to purchase all or a portion of the vested RSUs at a put purchase price (the “Put Purchase Price”). As the grantee has the choice of settlement through cash or in shares, these RSUs with the Put Right Option are considered to be a compound financial instrument that includes both a liability component and an equity component. At the measurement date, the Company accounts for the two components separately i.e. applying the requirements for cash-settled share-based payments to the liability component and applying the requirements for equity-settled share-based payments to the equity component, if that component has a recognized value. Applying the requirements for equity-settled share-based payments, the value of the equity component is not remeasured subsequently. Applying the requirements for cash-settled share-based payments, the liability is remeasured at each reporting date and on settlement date to its fair value. If the grantee chooses cash settlement, then the cash payment settles the liability. Any equity component previously recognized in equity remains in equity. If the grantee employee chooses settlement in equity instruments, then the liability is transferred to equity as consideration for issuing the equity instruments. (l) Warrants Share purchase warrants (each a “Warrant”) are classified as a component of equity. Warrants issued along with shares in an equity unit financing are measured using the residual approach, whereby the fair value of the Warrant is determined after deducting the fair value of the shares from the unit price less applicable financing costs. Warrants issued for broker/financing compensation, are recognized at the fair value using Black-Scholes at the date of issuance. Warrants are initially recorded as a part of the reserves in warrant in equity at the recognized fair value. Upon exercise of the Warrants, the previously recognized fair value of the Warrants exercised is reallocated to share capital from warrants reserve. Proceeds generated from the payment of the exercise price are also allocated to share capital. Amounts recorded for expired unexercised warrants are transferred to accumulated deficit in the period of which the expiry occurs. 4. Summary of Significant Accounting Policies (continued) (m) Flow-Through Shares Proceeds received from the issuance of flow-through shares are restricted to be used only for Canadian resource property exploration expenditures within a two-year period. The portion of the proceeds received but not yet expended at the end of the year is disclosed separately. The issuance of flow-through common shares results in the tax deductibility of the qualifying resource expenditures funded from the proceeds of the sales of such common shares being transferred to the purchasers of the shares. On the issuance of such shares, the Company bifurcates the flow-through shares into a flow-through share premium, equal to the estimated fair value of the premium that investors pay for the flow-through tax feature, which is recognized as a liability, and equity values of share capital and/or warrants. As related exploration expenditures are incurred, the Company derecognizes the premium liability and recognizes the related recovery. (n) Loss Per Share Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted loss per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted (loss) earnings per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. (o) Foreign Currency Translation Monetary assets and liabilities denominated in currencies other than CAD are translated into CAD at the rate of the consolidated financial statements of the Company are prepared in its functional currency, determined on the basis of the primary economic environment in which the entity operates. Given that operations are in Canada, the presentation and functional currency of the Company is the Canadian dollar. Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing at the transaction dates. At each reporting date, monetary items denominated in foreign currencies are translated into the entity’s functional currency at the then prevailing rates and non-monetary items measured at historical cost are translated into the entity’s functional currency at rates in effect at the date the transaction took place. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are included in the consolidated statements of loss and comprehensive loss for the period in which they arise. (p) Related Party Transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. (q) Adoption of New Accounting Standards and Amendments The Company adopted the following amendments, effective July 1, 2022. The changes were made in accordance with the applicable transitional provisions. The Company had assessed that no material impact is expected upon the adoption of the following amendments on its consolidated financial statements: 4. Summary of Significant Accounting Policies (continued) (q) Adoption of New Accounting Standards and Amendments (continued) Amendments to IAS 37 – Provisions, Contingent Liabilities and Contingent Assets (“IAS 37”) In May 2020, the IASB issued amendments to update IAS 37. The amendments specify that in assessing whether a contract is onerous under IAS 37, the cost of fulfilling a contract includes both the incremental costs and an allocation of costs that relate directly to contract activities. The amendments also include examples of costs that do, and do not, relate directly to a contract. Amendments to IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”) In February 2021, the IASB issued Definition of Accounting Estimates |
5. Sales Tax Receivable
5. Sales Tax Receivable | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
5. Sales Tax Receivable | 5. Sales Tax Receivable The Company’s sales tax receivable balance represents amounts due from government taxation authorities in respect of the Good and Services Tax/Harmonized Sales Tax. The Company anticipates full recovery of these amounts and therefore no ECL has been recorded against these receivables, which are due in less than one year. |
6. Prepaid Expenses
6. Prepaid Expenses | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
6. Prepaid Expenses | 6. Prepaid Expenses June 30, 2023 June 30, 2022 June 30, 2021 $ $ $ Prepaid insurance 283,307 483,278 4,796 Advances made to suppliers and deposits 600,565 448,872 63,177 883,872 932,150 67,973 |
7. Exploration and Evaluation A
7. Exploration and Evaluation Assets | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
7. Exploration and Evaluation Assets | 7. Exploration and Evaluation Assets The following summarizes the movement of the Company’s E&E assets for the years ended June 30, 2023, 2022 and 2021: $ Balance, June 30, 2020 5,396,879 Exploration and evaluation expenditures 333,345 Balance, June 30, 2021 5,730,224 Exploration and evaluation expenditures 6,347,360 Balance, June 30, 2022 12,077,584 Exploration and evaluation expenditures 9,364,448 Balance, June 30, 2023 21,442,032 |
7. Right-of-Use Assets
7. Right-of-Use Assets | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
7. Right-of-Use Assets | 8. Right-of-Use Assets Effective June 15, 2023, the Company entered into a lease agreement for mining equipment used in its E&E activities, for a term of two years. As at June 30, 2023, the Company’s ROU assets are as follows: $ Cost Balance, June 30, 2022 and 2021 - Additions for right-of-use assets 63,360 Balance, June 30, 2023 63,360 Accumulated Amortization Balance, June 30, 2022 and 2021 - Depreciation 2,640 Balance, June 30, 2023 2,640 Net Book Value June 30, 2022 and 2021 - June 30, 2023 60,720 |
9. Accounts Payable and Accrued
9. Accounts Payable and Accrued Liabilities Disclosure | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
9. Accounts Payable and Accrued Liabilities Disclosure | 9. Accounts Payable and Accrued Liabilities June 30, 2023 June 30, 2022 June 30, 2021 $ $ $ Trade payables 722,376 568,065 215,640 Accrued liabilities 301,758 614,384 46,485 1,024,134 1,182,449 262,125 Accounts payable of the Company are principally comprised of amounts outstanding for trade purchases incurred in the normal course of business. |
10. Loan Payable
10. Loan Payable | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
10. Loan Payable | 10. Loan Payable On November 29, 2021, the Company entered into a loan agreement for USD $692,970 (CAD $873,253) (the “Loan”). The Loan bears an interest rate of 4.7% and is payable in monthly instalments of USD $78,512. Interest related to the Loan totaled $16,226 and was included in interest on loan and debentures. The Loan matured and was paid off on August 18, 2022. |
11. Convertible Debentures
11. Convertible Debentures | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
11. Convertible Debentures | 11. Convertible Debentures In February 2021, the Company issued convertible debts (the “Debentures”) for a total of $865,263 (the “Subscribed Amount”). The Debentures were sold at a discount of approximately 5% for proceeds of $805,000, net of a $15,000 cash commission. Under the terms of the Agreement, the Subscribed Amount plus interest accrued, at a rate which should be the higher of (i) 12% per annum or (ii) Wall Street Prime Rate + 7%, is convertible, at the option of the Debenture holder, into common shares of the Company at a price that is the lesser of (i) $1.25 per share or (ii) a 20% discount to the price of a Liquidity Transaction (defined below). The conversion feature expires (the “Expiry Date”) on the earlier of 24 months from execution, or the closing of a registered public offering (the “Liquidity Transaction”). In the event of a default, interest accrues at the lesser of (i) 24% per annum or (ii) the maximum legally authorized rate. The Company has the right to repay the note prior to maturity at 110% of the then outstanding principal and interest. The Company must provide 30 days’ notice and the Lender shall have the right to convert prior to the 30-day notice expiration. 11. Convertible Debentures (continued) The Company determined the fair value of the conversion feature component upon initial recognition was $442,589. The residual $362,411 value of the $805,000 net proceeds received was allocated on a pro-rata basis between the debt component ($271,642) and the warrants component ($90,769) based on their relative fair values. The debt component was discounted at a rate of 20% and 346,104 subscriber warrants were valued using Black-Scholes, based on the following assumptions: expected life of 2.5 years, expected volatility of 70%, expected dividend yield of nil, risk-free interest of 0.18% – 0.22%, market price of $1.50, and an exercise price of $1.50. During the year ended June 30, 2022, the Company recognized accretion expense of $91,895 (2021 – $101,565) relating to accreting the debt component of the Debentures up to their principal value, and interest of $34,990 (2021 – $38,699). The Company incurred $24,507 in transaction costs pursuant to the issuance of the Debentures, including paying a $15,000 cash commission, issuing 15,000 finders’ warrants (each a “Finder’s Warrants”) exercisable at $1.50 for the earlier of (i) 60 months from the grant date or (ii) 24 months from the Company completing a listing on a Canadian stock exchange and $27 in bank charges. These costs, along with the $45,263 discount, are being amortized over the term of the Debentures. The 15,000 Finders’ Warrants were valued using Black-Scholes, based on the following assumption: expected life of 2.5 years, expected volatility of 70%, expected dividend yield of nil, risk-free interest rate of 0.18% – 0.22%, market price of $1.50, and an exercise price of $1.50. During the year ended June 30, 2022, the Company amortized $56,512 (2021 – $13,284) of transaction costs and discount in the consolidated statements of loss and comprehensive loss, including $2,025 recorded to warrants reserve for the value of the Finders’ Warrants allocated to the warrants component in 2021. On November 23, 2021, all debt holders exercised their conversion rights at a price of $1.25 per common share. As a result of the conversion, 751,163 common shares were issued. The following table reflects the continuity of the Debentures for the years ended June 30, 2022 and 2021: $ Balance, June 30, 2020 - Principal value of convertible debentures 865,263 Discount on proceeds received (45,263) Cash commission (15,000) Allocation to conversion feature (442,589) Allocation to warrant (90,769) Value at initial recognition 271,642 Accretion expense 101,565 Interest expense 38,699 Amortization of transaction costs 11,233 Balance, June 30, 2021 423,139 Accretion expense 91,895 Interest expense 34,990 Amortization of transaction costs 50,617 Conversion of Debentures (600,641) Balance, June 30, 2022 - |
12. Lease Liabilities
12. Lease Liabilities | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
12. Lease Liabilities | 12. Lease Liabilities The movements and carrying amounts of the Company’s ROU assets under lease as per disclosed in Note 8, are summarized as follows: $ Balance, June 30, 2022 and 2021 - Additions of lease 63,360 Lease payments (2,986) Accretion on lease liabilities 654 Balance, June 30, 2023 61,028 $ Current 29,921 Non-current 31,107 61,028 |
13. Derivative Liabilities
13. Derivative Liabilities | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
13. Derivative Liabilities | 13. Derivative Liabilities Conversion feature of Debentures Upon issuance of the Debentures in February 2021, the Company allocated the conversion feature component valued at $442,589 as a derivative liability. During the year ended June 30, 2021, a gain on change in fair value on the conversion feature of $32,676 was recorded on the consolidated statements of loss and comprehensive loss. During the year ended June 30, 2022, a gain on change in fair value on the conversion feature of $153,155 was recorded on the consolidated statements of loss and comprehensive loss up to the conversion of the Debentures. As a result of the conversion, a fair value of $256,758 was allocated to share capital. IPO Finders’ Warrants In connection with the IPO which closed on November 23, 2021, the Company issued 184,000 Finders’ Warrants exercisable at USD $9.375 before November 19, 2026. The fair value of these Finders’ Warrants was estimated at $1,237,681 using Black-Scholes with the following assumptions: expected volatility of 100% based on comparable companies, expected dividend yield of 0%, risk-free interest rate of 1.58%, and an expected life of five years. As at June 30, 2022, the derivative liability related to the Finders’ Warrants was measured at a fair value of $286,997 using Black-Scholes with the following assumptions: share price of USD $2.40, exercise price of USD $9.375, expected volatility of 100% based on comparable companies, expected dividend yield of 0%, risk-free interest rate of 3.10% and an estimated remaining life of 4.40 years. During the year ended June 30, 2022, the Company recorded a fair value decrease of $950,684 on the derivative liability related to the Finders’ Warrants. As at June 30, 2023, the derivative liability related to the Finders’ Warrants was measured at a fair value of $379,025 using Black-Scholes with the following assumptions: share price of USD $2.27, exercise price of USD $9.375, expected volatility of 146% based on comparable companies, expected dividend yield of 0%, risk-free interest rate of 3.77% and an estimated remaining life of 3.40 years. During the year ended June 30, 2023, the Company recorded a fair value increase of $92,028 on the derivative liability related to the Finders’ Warrants. 13. Derivative Liabilities (continued) Incentive Warrants On February 17, 2023, the Company issued 225,000 incentive warrants (each a “Incentive Warrant”) to a third-party pursuant to an engagement agreement between the parties, whereby each Incentive Warrant is exercisable for a period of two years at an exercise price of: (i) USD $3 for 75,000 Warrants; (ii) USD $4 for 75,000 Warrants; and (iii) USD $5 for 75,000 Warrants. On initial recognition, the fair value of these Incentive Warrants was estimated at $409,496 using Black-Scholes with the following assumptions: expected volatility of 148% based on comparable companies, expected dividend yield of 0%, risk-free interest rate of 4.15%, and an expected life of two years. The fair value of the Incentive Warrants was recorded as consulting fees on the consolidated statements of loss and comprehensive loss. As at June 30, 2023, the derivative liability related to the Incentive Warrants was measured at a fair value of $401,544 using Black-Scholes with the following assumptions: share price of USD $2.27, exercise price ranging from USD $3 to $5, expected volatility of 154% based on comparable companies, expected dividend yield of 0%, risk-free interest rate of 4.54% and an estimated remaining life of 1.64 years. During the year ended June 30, 2023, the Company recorded a fair value decrease of $7,952 on the derivative liability related to the Incentive Warrants. Settlement Warrants On March 31, 2023, the Company issued 500,000 settlement warrants (each a “Settlement Warrant”) to two additional third-parties pursuant to an agreement for release and settlement of claims advanced against the Company, whereby each Settlement Warrant is exercisable for a period of three years at an exercise price of USD $2.50. On initial recognition, the fair value of these Settlement Warrants was estimated at $979,294 using Black-Scholes with the following assumptions: expected volatility of 140% based on comparable companies, expected dividend yield of 0%, risk-free interest rate of 3.51%, and an expected life of three years. The fair value of the Settlement Warrants was recorded as professional fees on the consolidated statements of loss and comprehensive loss. As at June 30, 2023, the derivative liability related to the Settlement Warrants was measured at a fair value of $1,141,677 using Black-Scholes with the following assumptions: share price of USD $2.27, exercise price of USD $2.50, expected volatility of 140% based on comparable companies, expected dividend yield of 0%, risk-free interest rate of 4.21% and an estimated remaining life of 2.75 years. During the year ended June 30, 2023, the Company recorded a fair value increase of $162,383 on the derivative liability related to the Settlement Warrants. The changes to the derivative liabilities for the years ended June 30, 2023, 2022 and 2021 are as follows: $ Balance, June 30, 2020 - Fair value of derivative liability on date of issuance 442,589 Fair value changes of derivative liability – conversion feature (32,676) Balance, June 30, 2021 409,913 Fair value changes of derivative liability – conversion feature (153,155) Fair value allocated on conversion of Debentures (256,758) Fair value of derivative liability – Finders’ Warrants 1,237,681 Fair value changes of derivative liability – Finders’ Warrants (950,684) Balance, June 30, 2022 286,997 Fair value of derivative liabilities on date of issuance 1,388,790 Fair value changes of derivative liability – Finders’ Warrants 92,028 Fair value changes of derivative liability – Incentive Warrants (7,952) Fair value changes of derivative liability – Settlement Warrants 162,383 Balance, June 30, 2023 1,922,246 |
14. Other Liabilities
14. Other Liabilities | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
14. Other Liabilities | 14. Other Liabilities On January 30, 2023, the Company granted 470,000 RSUs to various directors, of which 400,000 RSUs contained the Put Right Option where the directors can elect to settle in cash or in equity. These RSUs vest at various stages pending conditions of certain milestones. These RSUs with the Put Right Option are classified as other liabilities on the consolidated statements of financial position. As at June 30, 2023, these RSUs were measured at a fair value of $820,612 based on a put right exercise price (the “Put Right Exercise Price”) of USD $2.50. During the year ended June 30, 2023, the fair value of these RSUs was recorded as stock-based compensation on the consolidated statements of loss and comprehensive loss. |
15. Share Capital
15. Share Capital | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
15. Share Capital | 15. Share Capital Authorized share capital The Company is authorized to issue an unlimited number of common shares without par value. Common shares issued and outstanding as at June 30, 2023, 2022 and 2021 are as follows: Number of common shares Amount # $ Balance, June 30, 2020 13,008,006 5,745,369 Shares issued from exercise of warrants (a) 2,170 4,883 Balance, June 30, 2021 13,010,176 5,750,252 Shares issued on initial public offering (b) 3,680,000 34,988,520 Shares issue costs (b) - (4,233,129) Shares issued on conversion of debentures (c) 751,163 857,399 Shares issued on vesting of restricted share units (d) 240,000 1,950,645 Shares issued from exercise of warrants (e) 243,419 419,946 Balance, June 30, 2022 17,924,758 39,733,633 Shares issued on debt settlement (f) 240,000 800,366 Shares issued from exercises of warrants (g) 21,052 36,774 Balance, June 30, 2023 18,185,810 40,570,773 Share capital transactions for the year ended June 30, 2021 (a) Share capital transactions for the year ended June 30, 2022 (b) 15. Share Capital (continued) Share capital transactions for the year ended June 30, 2022 (c) (d) (e) Share capital transactions for the year ended June 30, 2023 (f) (g) |
16. Reserve for RSUs
16. Reserve for RSUs | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
16. Reserve for RSUs | 16. Reserve for RSUs On January 9, 2022, the Company granted 240,000 RSUs to a former officer, which vested immediately. The RSUs were settled and immediately converted into common shares. Stock-based compensation of $1,950,645 in connection with the vesting of these RSUs was recorded during the year ended June 30, 2022. On January 30, 2023, the Company granted 470,000 RSUs to various directors. 70,000 of these RSUs vest on January 30, 2024. The grant date fair value attributable to these 70,000 RSUs was $209,422, of which $86,638 was recorded as stock-based compensation in connection with the vesting of these RSUs during the year ended June 30, 2023. The other RSUs vest at various stages pending conditions of certain milestones and are classified under other liabilities (see Note 14 for details). As at June 30, 2023, the Company had 470,000 RSUs outstanding (June 30, 2022 and 2021 – nil). |
17. Reserve for Share-Based Pay
17. Reserve for Share-Based Payments | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
17. Reserve for Share-Based Payments | 17. Reserve for Share-Based Payments The Company maintains the Option Plan whereby certain key officers, directors and consultants may be granted stock options for common shares of the Company. The maximum number of common shares that are issuable under the Option Plan is limited to 2,406,732 common shares. Under the Option Plan, the exercise price of each option may not be lower than the greater of the closing price of the Company’s shares on the trading day prior to the grant date or the grant date itself, whichever is higher. Vesting of options is determined at the discretion of the Board. As at June 30, 2023, the Company had 944,325 common shares available for issuance under the Option Plan. 17. Reserve for Share-Based Payments (continued) The following summarizes the stock option activity for the years ended June 30, 2023, 2022 and 2021: 2023 2022 2021 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price # $ # $ # $ Outstanding, beginning of year 1,620,489 7.23 820,000 2.50 820,000 0.50 Granted 350,000 USD 2.50 1,269,386 USD 7.50 - - Cancelled (360,000) 2.50 (300,000) 2.50 (160,000) (1) 2.50 Cancelled (148,082) USD 7.50 (168,897) USD 7.50 - - Reinstated - - - - 160,000 (1) 2.50 Outstanding, end of year 1,462,407 7.53 1,620,489 7.23 820,000 2.50 Exercisable, end of year 1,462,407 7.53 1,070,246 6.08 820,000 2.50 (1) Option activities for the year ended June 30, 2021 No options were granted during the year ended June 30, 2021. Option activities for the year ended June 30, 2022 On November 18, 2021, the Company granted 1,269,386 options to various officers and directors at an exercise price of USD $7.50, expiring on November 18, 2026. The options vest in equal increments after three months, six months, nine months and 12 months until fully vested. The options were valued using Black-Scholes with the following assumptions: expected volatility of 100% based on comparable companies, expected dividend yield of 0%, risk-free interest rate of 1.47%, forfeiture rate of 20% and an expected life of five years. The grant date fair value attributable to these options was $7,167,552, of which $848,520 was recorded as stock-based compensation in connection with the vesting of these options during the year ended June 30, 2023 (2022 – $6,084,861). On June 29, 2022, 168,897 of these options were cancelled. As a result of these cancellations, an amount of $1,172,443 was reallocated from share-based payments reserve to accumulated deficit. Option activities for the year ended June 30, 2023 On January 30, 2023, the Company granted 350,000 options to various directors. The options are exercisable at a price of USD $2.50 per common share for a period of five years and vested immediately on grant. The options were valued using Black-Scholes with the following assumptions: expected volatility of 113% based on comparable companies, expected dividend yield of 0%, risk-free interest rate of 3.04%, forfeiture rate of 20% and an expected life of five years. The grant date fair value attributable to these options of $666,746 was recorded as stock-based compensation in connection with the vesting of these options during the year ended June 30, 2023. On May 17, 2023, the Board extended the date of expiry of the remaining 160,000 options previously granted in May 25, 2019, from May 24, 2023 to May 24, 2029. The extension constituted a modification in accordance with the guidance of IFRS 2 – Share-Based Payments. As the modification increases the fair value of the options, measured immediately before and after the modification, the Company recorded the incremental fair value, the difference between the fair value of the modified options and that of the original grant. As a result, the Company recorded an additional stock-based compensation of $207,733, which is included in share-based payments reserve. 17. Reserve for Share-Based Payments (continued) Option activities for the year ended June 30, 2023 (continued) During the year ended June 30, 2023, 148,082 options exercisable at USD $7.50 and 360,000 options exercisable at $2.50, were cancelled. As a result of these cancellations, an amount of $1,312,757 was reallocated from share-based payments reserve to accumulated deficit. The following table summarizes information of stock options outstanding and exercisable as at June 30, 2023: Date of expiry Number of options outstanding Number of options exercisable Exercise price Weighted average remaining contractual life # # $ Years November 18, 2026 952,407 952,407 USD 7.50 3.39 January 30, 2028 350,000 350,000 USD 2.50 4.59 May 24, 2029 160,000 160,000 USD 2.50 5.90 1,462,407 1,462,407 7.53 3.95 |
18. Reserve for Warrants
18. Reserve for Warrants | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
18. Reserve for Warrants | 18. Reserve for Warrants The following summarizes the warrant activity for the years ended June 30, 2023, 2022 and 2021: 2023 2022 2021 Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price Number of warrants Weighted Average exercise price # $ # $ # $ Outstanding, beginning of year 821,106 3.93 880,525 1.55 551,929 1.59 Issued from debentures financing - - - - 361,098 1.50 Issued as Finders’ Warrants from IPO - - 184,000 USD 9.375 - - Issued as Incentive Warrants 75,000 USD 3.00 - - - - Issued as Incentive Warrants 75,000 USD 4.00 - - - - Issued as Incentive Warrants 75,000 USD 5.00 - - - - Issued as Settlement Warrants 500,000 USD 2.50 - - - - Exercised (21,052) 1.50 (243,419) 1.50 (2,170) 2.25 Expired - - - - (30,332) 2.25 Outstanding, end of year 1,525,054 4.00 821,106 3.93 880,525 1.55 Warrant issuances for the year ended June 30, 2021 As part of the Debentures issuance in February 2021, the Company issued 346,108 Warrants to subscribers of the Debentures. Debenture holders were eligible to receive such number of Warrants equal to half of the number of common shares issuable upon conversion of the Debentures at the conversion price of $1.25. Each Warrant is exercisable into one common share at an exercise price of $1.50 per Warrant until the earlier of (i) 60 months from the grant date or (ii) 24 months from the Company completing a listing on a Canadian stock exchange. These Warrants were valued at $90,769, recorded to the warrants reserve after allocating, on a pro-rata basis, the $362,411 residual value of the Debentures between the debt and warrants components after the initial allocation of $442,589 of the $805,000 net proceeds received to the conversion feature. 18. Reserve for Warrants (continued) Warrant issuances for the year ended June 30, 2021 (continued) The Debenture Warrants were valued using Black-Scholes based on the following assumptions: expected life of 2.5 years, expected volatility of 70%, expected dividend yield of nil, risk-free interest rate of 0.18% - 0.22%, market price of $1.50, and an exercise price of $1.50. $2,025 of Debenture transaction costs was recorded to warrants reserve in amortizing the value of transaction costs allocated to the warrants component of the Debentures. 15,000 Debenture Finders’ Warrants exercisable on the same terms as the Debenture Warrants were also issued, and they were valued at $9,480 using Black-Scholes based on the following assumptions: expected life of 2.5 years, expected volatility of 70%, expected dividend yield of nil, risk-free interest rate of 0.18%, market price of $1.50, and an exercise price of $1.50. The value of these warrants allocated to loan liability transaction costs is being amortized in the statement of loss and comprehensive loss in accreting up the carrying value of the Debenture loan liability to its principal balance and the value allocated to Debenture warrants transaction costs is being amortized to the warrants reserve over the term of the Debentures. Warrant issuances for the year ended June 30, 2022 As part of the IPO which closed on November 23, 2021, the Company issued 184,000 Finders’ Warrants exercisable at USD $9.375 before November 19, 2026. As these Finders’ Warrants are denominated in USD, they are considered derivative liabilities hence classified as such (see Note 13 for details). Warrant issuances for the year ended June 30, 2023 As part of an engagement agreement, the Company issued 225,000 Incentive Warrants exercisable at USD $3, $4 and $5, respectively, up to February 17, 2025, and as part of settlement 500,000 Settlement Warrants exercisable at USD $2.50 up to March 31, 2026. As the Incentive Warrants and Settlement Warrants are denominated in USD, they are considered derivative liabilities hence classified as such (see Note 13 for details). The following table summarizes information of warrants outstanding as at June 30, 2023: Date of expiry Number of warrants outstanding Exercise price Weighted average remaining contractual life # $ Years November 19, 2023 32,000 1.25 0.39 November 19, 2023 512,627 1.50 0.39 November 19, 2023 71,427 2.25 0.39 February 17, 2025 75,000 USD 3.00 1.64 February 17, 2025 75,000 USD 4.00 1.64 February 17, 2025 75,000 USD 5.00 1.64 March 31, 2026 500,000 USD 2.50 2.75 November 19, 2026 184,000 USD 9.375 3.40 1,525,054 4.00 1.71 |
19. Basic and Diluted Loss per
19. Basic and Diluted Loss per Share | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
19. Basic and Diluted Loss per Share | 19. Basic and Diluted Loss per Share The calculations of basic and diluted loss per share for the year ended June 30, 2023 were based on the net loss of $15,462,945 (2022 – net loss of $9,446,454; 2021 – net loss of $552,436) and the weighted average number of basic and diluted common shares outstanding of 18,033,851 (2022 – 15,884,041; 2021 – 13,008,669). The details of the computation of basic and diluted loss per share are as follows: 2023 2022 2021 $ $ $ Net Loss (15,462,945) (9,446,454) (552,436) # # # Basic weighted-average number of shares outstanding 18,033,851 15,884,041 13,008,669 Assumed conversion of dilutive stock options and warrants - - - Diluted weighted-average number of shares outstanding 18,033,851 15,884,041 13,008,669 $ $ $ Basic and diluted loss per share (0.85) (0.60) (0.04) |
20. Related Party Transactions
20. Related Party Transactions | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
20. Related Party Transactions | 20. Related Party Transactions In accordance with IAS 24 – Related Party Disclosures, key management personnel, including companies controlled by them, are those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly, including any directors (executive and non-executive) of the Company. The remuneration of directors and key executives is determined by the compensation committee of the Board. The remuneration of directors and other members of key management personnel during the years ended June 30, 2023, 2022 and 2021 were as follows: 2023 2022 2021 $ $ $ Directors’ and officers’ consulting fees 951,347 687,585 200,858 Cash payment 334,738 - - Exploration and evaluation expenditures 415,325 220,765 48,000 Addendum payments 2,554,830 - - 4,256,240 908,350 248,858 Directors’ and officers’ consulting fees During the year ended June 30, 2023, fees of $492,377 (2022 – $585,615; 2021 – $200,858) included in directors’ and officers’ consulting fees had been paid to companies controlled by all former and current officers of the Company. Cash payment During the year ended June 30, 2023, a payment of USD $250,000 ($334,738) (2022 and 2021 – $nil) had been paid to a director of the Company. Exploration and evaluation expenditures During the year ended June 30, 2023, fees of $415,325 (2022 – $220,765; 2021 – $48,000) for services rendered by the Company’s former VP of Resources Development, and the VP of Exploration, had been capitalized as E&E assets on the consolidated statements of financial position. 20. Related Party Transactions (continued) Addendum payments On November 1, 2022, the Company purported to amend the consulting agreements with the entities controlled by the former Chief Executive Officer and the former Chief Operating Officer of Snow Lake, with an addendum which amended the termination clause of their respective agreements. As a result of the addendum, the Company recorded fees of $1,672,988 (USD $1,224,040) and $881,842 (USD $648,020), respectively, which are included in directors’ and officers’ consulting fees during the year ended June 30, 2023. On December 5, 2022, payout was made to the respective entities controlled by the former CEO and COO. As of June 30, 2023, the Company has made a claim against these former officers (see Note 25 for more details). Share-based compensation During the year ended June 30, 2023, the Company had granted certain RSUs and options to various directors and officers. Total stock-based compensation of $2,422,516 (2022 – $8,035,506; 2021 – nil) was recorded in connection with the vesting of these securities. Other related party transactions On January 25, 2023, the Company issued 240,000 common shares from the Shares-for-Debt Settlement as disclosed in Note 15(f). As a result of the Shares-for-Debt Settlement, the Company recorded a loss on settlement of $157,502 on the consolidated statements of loss and comprehensive loss. Related party balances All related party balances payable, for services and business expense reimbursements rendered as at June 30, 2023, 2022 and 2021, are non-interest bearing and payable on demand, and are comprised of the following: 2023 2022 2021 $ $ $ Payable to officers and directors 86,616 110,274 236,402 (Receivable) payable to Nova Minerals Ltd. (10,287) (10,287) 43,240 76,329 99,987 279,642 |
21. Income Taxes
21. Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
21. Income Taxes | 21. Income Taxes The reconciliation of the combined Canadian federal and provincial statutory income tax rate of 27% (2022 – 27%) to the effective tax rate is as follows: 2023 2022 2021 $ $ $ Net loss before income tax (15,462,945) (9,446,454) (552,436) Combined federal and provincial statutory income tax rates 27% 27% 27% Expected income tax recovery at statutory rates 4,174,995 2,550,543 149,158 Non-deductible differences (225,472) (1,102,753) (7,310) Change in unrecognized deductible temporary differences (3,949,523) (1,447,790) (141,848) Total income tax recovery - - - 21. Income Taxes (continued) Unrecognized deductible temporary differences The income tax benefit of the following deductible temporary differences has not been recorded in these financial statements because of the uncertainly of their recovery: 2023 2022 2021 $ $ $ Non-capital losses carried forward 5,226,507 1,110,151 300,805 Exploration and evaluation assets (100,081) (100,058) (109,447) Other items 493,493 660,396 15,278 5,619,919 1,670,489 206,636 Non-capital losses carried forward The Company has non-capital tax losses available to reduce taxes in future years of approximately $19,357,000 (2022 – $4,112,000; 2021 – $1,114,000). These losses have expiry dates between 2038 and 2042. Tax attributes are subject to review, and potential adjustment, by tax authorities |
22. Capital Management
22. Capital Management | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
22. Capital Management | 22. Capital Management The Company’s objective when managing capital is to safeguard its ability to continue as a going concern such that it can provide returns for shareholders and benefits for other stakeholders. The management of the capital structure is based on the funds available to the Company in order to support the acquisition, exploration and development of mineral properties and to maintain the Company in good standing with the various regulatory authorities. In order to maintain or adjust its capital structure, the Company may issue new shares, sell assets to settle liabilities, issue debt instruments or return capital to its shareholders. The Company monitors its capital structure and makes adjustments in light of changes in economic conditions and the risk characteristics of the underlying assets. |
21. Financial Risks
21. Financial Risks | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
21. Financial Risks | 23. Financial Risks The Company is exposed to various risks as it relates to financial instruments. Management, in conjunction with the Board, mitigates these risks by assessing, monitoring and approving the Company’s risk management process. There have not been any changes in the nature of these risks or the process of managing these risks from the previous reporting periods. Credit risk Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash, other receivable (excluding sales tax receivable), and due from related party, which expose the Company to credit risk should the borrower default on maturity of the instruments. Cash is held with reputable chartered bank in Canada, which is closely monitored by management. Management believes that the credit risk concentration with respect to financial instruments included in cash, other receivables, and due from related party is minimal. Liquidity risk Liquidity risk is the risk that the Company will not have sufficient cash resources to meet its financial obligations as they come due. The Company’s liquidity and operating results may be adversely affected if the Company’s access to the capital market is hindered, whether as a result of a downturn in stock market conditions generally or related to matters specific to the Company. The Company generates cash flow primarily from its financing and investing activities. 23. Financial Risks (continued) Liquidity risk (continued) As at June 30, 2023, the Company had a cash balance of $3,840,880 (June 30, 2022 – $23,792,408; June 30, 2021 – $318,844), to settle current liabilities of $3,883,529 (June 30, 2022 – $1,780,877; June 30, 2021 – $1,374,819). As at June 30, 2023, the Company had the following contractual obligations: Less than 1 year 1 to 3 years 3 to 5 years Total $ $ $ $ Accounts payable and accrued liabilities 1,024,134 - - 1,024,134 Due to related parties 86,616 - - 86,616 Lease liabilities 29,921 31,107 - 61,028 Derivative liabilities 1,922,246 - - 1,922,246 Other liabilities 820,612 - - 820,612 Total 3,883,529 31,107 - 3,914,636 The Company manages liquidity risk by maintaining adequate cash reserves and by continuously monitoring forecasts and actual cash flows for a rolling period of 12 months to identify financial requirements. Where insufficient liquidity may exist, the Company may pursue various debt and equity instruments for short or long-term financing of its operations. Management believes there is sufficient capital to meet short-term business obligations, after taking into account cash flow requirements from operations and the Company’s cash position as at June 30, 2023. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s loans payable and convertible debentures have fixed interest rates. As at June 30, 2023, the Company had no hedging agreements in place with respect to floating interest rates. Management believes that the interest rate risk concentration with respect to financial instruments is minimal. Foreign exchange risk Foreign exchange risk is the risk that the Company will be subject to foreign currency fluctuations in satisfying obligations related to its foreign activities. The Company has from time to time, financial instruments and transactions denominated in foreign currencies, notably in USD. The Company’s primary exposure to foreign exchange risk is that transactions denominated in foreign currency may expose the Company to the risk of exchange rate fluctuations. Based on its current operations, management believes that the foreign exchange risk remains minimal. Fair value Fair value estimates of financial instruments are made at a specific point in time based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values. As at June 30, 2023, the Company’s financial instruments consisted of cash, other receivables (excluding sales tax recoverable), due from related party, accounts payable, due to related parties, lease liabilities, derivative liabilities and other liabilities. The fair value of other receivables (excluding sales tax recoverable), due from related party, accounts payable and due to related parties are approximately equal to their carrying value due to their short-term nature. The fair values of the lease liabilities approximate their carrying amounts as they were measured taking into consideration comparable instruments with similar risks in determining the rates at which to discount their amount in applying their respective measurement models. 23. Financial Risks (continued) Fair value (continued) The Company classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: · · · Level 1 Level 2 Level 3 Total $ $ $ $ Cash 3,480,880 - - 3,480,880 Derivative liabilities - (1,922,246) - (1,922,246) Other liabilities - (820,612) - (820,612) As at June 30, 2023, the Company’s financial instruments carried at fair value consisted of its cash, which is classified as Level 1, and its derivative liabilities and other liabilities, which have been classified as Level 2, respectively. There were no transfers between Levels 2 and 3 for recurring fair value measurements during the years ended June 30, 2023, 2022 and 2021. |
22. Grant Income
22. Grant Income | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
22. Grant Income | 24. Grant Income During the year ended June 30, 2023, the Company received a grant for $109,750 (2022 – $109,745; 2021 – $nil) from the Manitoba Minerals Development Fund, for the purposes of supporting strategic projects that contribute to sustainable economic growth in the Province of Manitoba. |
23. Contingencies
23. Contingencies | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
23. Contingencies | 25. Contingencies The Company’s E&E activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. As at June 30, 2023, the Company believes its operations are materially in compliance with all applicable laws and regulations. The Company expects to make future expenditures to comply with such laws and regulations. As of June 30, 2023, Snow Lake has also made a claim against certain former directors of the Company and their holding companies for, among other things, breach of fiduciary duty as a result of, amongst other matters, of those directors approving changes to the consulting agreements between the former CEO and COO and their holding companies, for termination payments of USD $1,392,000 (to USD $1,872,000) during a time where it was clear that a change of control of the Company was imminent and increased the range of instances where they would be eligible for those payments. The Company takes the position that the amendments are void and that the former CEO and COO were not entitled to any payments under their consulting agreements. Snow Lake seeks to recover the payments made to the former CEO and COO. As of the date of approval of these consolidated financial statements, all defendants have now filed Statements of Defence. All defendants have made counterclaims seeking indemnification for legal fees incurred in responding to this claim in relation to directors’ indemnity agreements they have with the Company. The Company takes the position that the defendants are not eligible for indemnity payments as a result of their breaches of fiduciary duties. The next step will be for the Company to file its Replies and Defences to Counterclaims, and then proceed to discovery. As at June 30, 2023, as the outcome of the claims remains uncertain, the Company had not recognized any contingent assets on the consolidated statements of financial position. |
24. Subsequent Events
24. Subsequent Events | 12 Months Ended |
Jun. 30, 2023 | |
Notes | |
24. Subsequent Events | 26. Subsequent Events On July 13, 2023, the Company filed an application against its former Manitoba law firm seeking to assess for reasonableness certain invoices of the law firm rendered between May 2022 and January 2023, as well as the repayment of any fees paid to the law firm which the Court finds to be unreasonable. This application is at the early stages. On July 17, 2023, the Company granted 250,000 options and 200,000 RSUs to its new CEO. 25% of the options will vest six months from the grant date, 25% will vest 12 months from the grant date, with the remainder to vest 18 months from the grant date. The RSUs, on the other hand, will vest at various stages depending on the Company’s volume weighted average price exceeding certain thresholds. On July 29, 2023, a former director resigned from the Company, resulting in 50,000 options and 10,000 RSUs being cancelled. On September 21, 2023, the Company closed its best-efforts flow-through financing through the issuance of 2,133,979 common shares at a price of $3.6117 (USD $2.67) per common share, for g ross proceeds of $7,707,292 (the “Offering”) On September 21, 2023, the Company also issued 21,276 common shares to a third-party pursuant to a letter agreement between the parties. As of August 9, 2023 160,000 RSUs out of the 470,000 RSUs awarded on January 30, 2023 had met the milestones required to vest. On September 26, 2023, the Company paid $546,476 (USD $400,000) to redeem 160,000 of the vested RSUs at USD $2.50 each. On October 20, 2023, the Company issued 40,000 common shares to a third-party pursuant to a marketing services agreement (the “Marketing Agreement”) between the parties for a term of six months from October 2, 2023 to April 2, 2024. Upon execution of the agreement, the Company also paid a cash payment of USD $62,500 upon execution, The Company also issued 300,000 Warrants to the third-party pursuant to the Marketing Agreement, whereby each Warrant is exercisable for a period of 12 months at an exercise price of: (i) USD $2 for 100,000 Warrants; (ii) USD $2.50 for 100,000 Warrants; and (iii) USD $3 for 100,000 Warrants. |
4. Summary of Significant Acc_2
4. Summary of Significant Accounting Policies: (a) Current and Non-Current Classification (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(a) Current and Non-Current Classification | (a) Current and Non-Current Classification Assets and liabilities are presented in the consolidated statements of financial position based on current and non-current classification. An asset is classified as current when it is either expected to be realized or intended to be sold or consumed in the normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realized within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when it is either expected to be settled in the normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. |
4. Summary of Significant Acc_3
4. Summary of Significant Accounting Policies: (b) Cash (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(b) Cash | (b) Cash Cash in the consolidated statements of financial position comprises cash at a chartered bank in Canada and funds held in trust with the Company’s legal counsels which is available on demand. |
4. Summary of Significant Acc_4
4. Summary of Significant Accounting Policies: (c) Exploration and Evaluation Assets (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(c) Exploration and Evaluation Assets | (c) Exploration and Evaluation Assets Title to E&E assets including mineral properties involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing historical characteristic of many properties. The Company has investigated title to all its mineral properties and, to the best of its knowledge, titles to all its mineral properties are in good standing. 4. Summary of Significant Accounting Policies (continued) (c) Exploration and Evaluation Assets (continued) The Company accounts for E&E assets in accordance with IFRS 6. Once the legal right to explore a property has been acquired, costs directly related to exploration and evaluation are recognized and capitalized, in addition to acquisition costs. These expenditures include but are not limited to acquiring licenses, researching and analyzing existing exploration data, conducting geological studies, exploration drilling and sampling and payments made to contractors and consultants in connection with the exploration and evaluation of the property. Costs not directly attributable to E&E activities, including general administrative overhead costs, are expensed in the period in which they occur. Acquisition costs incurred in obtaining legal right to explore a mineral property are deferred until the legal right is granted and thereon reclassified to mineral properties. Transaction costs incurred in acquiring an asset are deferred until the transaction is completed and then included in the purchase price of the asset acquired. When a project is deemed to no longer have commercially viable prospects to the Company, E&E expenditures in respect of that project are deemed to be impaired. As a result, those E&E expenditure costs, in excess of the estimated recoverable amount, are written off to the consolidated statements of loss and comprehensive loss. The Company assesses E&E assets for impairment when facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to sell (“FVLCS”) and value-in-use (“VIU”). Once the technical feasibility and commercial viability of extracting the mineral resource has been determined, the property is considered a mine under development. E&E assets are also tested for impairment before the assets are transferred to development properties. As the Company currently has no operational income, any incidental revenues earned in connection with exploration activities are applied as a reduction to capitalized exploration costs. |
4. Summary of Significant Acc_5
4. Summary of Significant Accounting Policies: (d) Financial Instruments (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(d) Financial Instruments | (d) Financial Instruments The Company classifies and measures financial instruments in accordance with IFRS 9 – Financial Instruments (“IFRS 9”). A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Classification The Company classifies its financial assets in the following measurement categories: (a) those to be measured subsequently at FVTPL; (b) those to be measured subsequently at fair value through other comprehensive income (loss) (“FVTOCI”); and (c) those to be measured at amortized cost. The classification of financial assets depends on the business model for managing the financial assets and the contractual terms of the cash flows. Financial liabilities are classified as those to be measured at amortized cost unless they are designated as those to be measured subsequently at FVTPL (irrevocable election at the time of recognition). The Company’s financial assets include cash, other receivables excluding any sales tax amounts, and due from related party. The Company’s financial liabilities include its accounts payable, due to related parties, loan payable, lease liabilities, derivative liabilities and other liabilities. 4. Summary of Significant Accounting Policies (continued) (d) Financial Instruments (continued) Classification (continued) Fair value through profit or loss This category includes derivative instruments as well as quoted equity instruments which the Company has not irrevocably elected, at initial recognition or transition, to classify at FVTOCI. This category would also include debt instruments whose cash flow characteristics do not meet the solely payment of principal and interest (“SPPI”) criterion or are not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell. Financial assets in this category are recorded at fair value with changes recognized in the consolidated statements of loss and comprehensive loss. Financial assets at fair value through other comprehensive income Debt and equity instruments that are held for collection of contractual cash flows and for sale, and where the assets’ cash flows represent solely payments of principal and interest, are classified as FVTOCI. Movements in fair values are recognized in other comprehensive income (“OCI”) and accumulated in fair value reserve, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses, which are recognized in profit and loss. When the financial asset is derecognized, the cumulative gain or loss recognized in OCI is reclassified from equity to profit or loss and presented in “other gains and losses”. Interest income from these financial assets is recognized using the effective interest rate method and presented in “interest income”. As at June 30, 2023 and 2022, the Company did not have any financial assets at FVTOCI. Amortized cost Debt and equity instruments that are held for collection of contractual cash flows where those cash flows represent SPPI are measured at amortized cost. Interest income from these financial assets is included in interest income using the effective interest rate method. The Company’s classification of financial assets and financial liabilities is summarized below: Cash FVTPL Due to/from related parties Amortized cost Accounts payable Amortized cost Loan payable Amortized cost Lease liabilities Amortized cost Derivative liabilities FVTPL Other liabilities FVTPL Measurement All financial instruments are required to be measured at fair value on initial recognition, plus, in the case of a financial asset or financial liability not at FVTPL, transaction costs that are directly attributable to the acquisition or issuance of the financial asset or financial liability. Transaction costs of financial assets and financial liabilities carried at FVTPL are expensed in profit or loss. Financial assets and financial liabilities with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. 4. Summary of Significant Accounting Policies (continued) (d) Financial Instruments (continued) Measurement (continued) Financial assets that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortized cost at the end of the subsequent accounting periods. All other financial assets, including equity investments, are measured at their fair values at the end of subsequent accounting periods, with any changes taken through profit and loss or OCI (irrevocable election at the time of recognition). For financial liabilities measured subsequently at FVTPL, changes in fair value due to credit risk are recorded in OCI. Expected credit loss impairment model Under IFRS 9, the Company recognizes a provision for ECL on financial assets that are measured on amortized cost. The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company in full or when the financial asset is more than 90 days past due. The carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts. Derecognition The Company derecognizes financial assets only when the contractual rights to cash flow from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Gains or losses on derecognition are generally recognized in profit or loss. Determination of fair value The determination of fair value requires judgment and is based on market information, where available and appropriate. The Company classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. |
4. Summary of Significant Acc_6
4. Summary of Significant Accounting Policies: (e) Impairment of Assets (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(e) Impairment of Assets | (e) Impairment of Assets At each reporting date, the Company reviews the carrying amounts of its assets to determine whether there are any indicators of impairment. If any such indicator exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. Where the asset does not generate cash inflows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit (“CGU”) to which the asset belongs. Any intangible asset with an indefinite useful life is tested for impairment annually and whenever there is an indication that the asset may be impaired. An asset’s recoverable amount is the higher of FVLCS and VIU. In assessing VIU, the estimated future cash flows are discounted to their present value, using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted. 4. Summary of Significant Accounting Policies (continued) (e) Impairment of Assets (continued) If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount is reduced to the recoverable amount and an impairment loss is recognized immediately in the consolidated statements of loss and comprehensive loss. Where an impairment subsequently reverses, the carrying amount is increased to the revised estimate of recoverable amount but only to the extent that this does not exceed the carrying value that would have been determined if no impairment had previously been recognized. A reversal of impairment is recognized in the consolidated statements of loss and comprehensive loss. |
4. Summary of Significant Acc_7
4. Summary of Significant Accounting Policies: (f) Impairment of Non-Financial Assets (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(f) Impairment of Non-Financial Assets | (f) Impairment of Non-Financial Assets Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s FVLCS and VIU. The VIU is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or CGU to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a CGU. |
4. Summary of Significant Acc_8
4. Summary of Significant Accounting Policies: (g) Leased Assets (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(g) Leased Assets | (g) Leased Assets The Company is party to a lease of a mining analyzer which is used for its E&E activities. The Company assesses service arrangements to determine if an asset is explicitly or implicitly specified in the agreement and if it has the right to control the use of the identified asset. At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company then recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. The ROU asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The assets are depreciated to the earlier of the end of the useful life of the ROU asset or the lease term using the straight-line method. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. The Company elected to recognize expenses for leases with a term of 12 months or less on a straight-line basis over the lease term and lease of assets of low value, and not to recognize these short-term leases on the consolidated statements of financial position. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Company’s incremental borrowing rate, which was determined to be about 14%. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, if there is a change in future lease payments arising from a change in an index or rate, or if the Company changes its assessment whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured, the amount of the remeasurement is recognized as a corresponding adjustment to the carrying amount of the ROU asset or is recorded in profit or loss if the carrying amount of the ROU asset has been reduced to zero. |
4. Summary of Significant Acc_9
4. Summary of Significant Accounting Policies: (h) Provisions (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(h) Provisions | (h) Provisions A provision is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. |
4. Summary of Significant Ac_10
4. Summary of Significant Accounting Policies: (i) Income Taxes (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(i) Income Taxes | (i) Income Taxes Income tax expense consists of current and deferred tax expense. Current and deferred tax are recognized in profit or loss except to the extent that it relates to items recognized directly in equity or OCI. Current income tax is recognized and measured at the amount expected to be recovered from, or payable to, the taxation authorities based on the income tax rates enacted or substantively enacted at the end of the reporting period and includes any adjustment to taxes payable in respect of previous years. Deferred tax is recorded for temporary differences at the date of the consolidated statements of financial position between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of a deferred tax asset is reviewed at the end of the reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at the end of the reporting period and are recognized to the extent that it has become probable that future taxable Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the end of the reporting period. Deferred tax assets and deferred tax liabilities are offset if, and only if, they relate to income taxes levied by the same taxation authority and the Company has the legal rights and intent to offset. Estimates Provisions for taxes are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these provisions at the end of the reporting period. However, it is possible that at some future date an additional liability could result from audits by taxing authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will affect the tax provisions in the period in which such determination is made. |
4. Summary of Significant Ac_11
4. Summary of Significant Accounting Policies: (j) Share Capital (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(j) Share Capital | (j) Share Capital Common shares are classified as share capital. Costs directly attributable to the issue of common shares are recognized as a deduction from share capital, net of any tax effects. |
4. Summary of Significant Ac_12
4. Summary of Significant Accounting Policies: (k) Share-Based Payments Transactions (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(k) Share-Based Payments Transactions | (k) Share-Based Payments Transactions The Company operates a stock option plan (the “Option Plan”). Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received, or at the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured and are recorded at the date the goods or services are received. The fair value of options is determined based on the application of the Black-Scholes valuation model (“Black-Scholes”). The fair value of equity-settled stock-based compensation transactions is recognized as an expense with a corresponding increase in the share-based payments reserve. If share-settled awards are modified, as a minimum an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. Amounts recorded for cancelled or expired unexercised options are transferred to accumulated deficit in the period of which the cancellation or expiry occurs. The Company also operates a RSUs Plan, where RSUs are granted to directors, employees and consultants from time to time. RSUs are measured at the fair value of the date of grant, based on the closing price of the Company’s common shares on the date of grant. The fair value of stock-based compensation on RSUs is recognized as an expense with a corresponding increase in the reserve for RSUs over the vesting period. From time to time, the Company may also grant RSUs with a put right option, which provides the grantee with the right (the “Put Right Option”), but not the obligation to cause the Company to purchase all or a portion of the vested RSUs at a put purchase price (the “Put Purchase Price”). As the grantee has the choice of settlement through cash or in shares, these RSUs with the Put Right Option are considered to be a compound financial instrument that includes both a liability component and an equity component. At the measurement date, the Company accounts for the two components separately i.e. applying the requirements for cash-settled share-based payments to the liability component and applying the requirements for equity-settled share-based payments to the equity component, if that component has a recognized value. Applying the requirements for equity-settled share-based payments, the value of the equity component is not remeasured subsequently. Applying the requirements for cash-settled share-based payments, the liability is remeasured at each reporting date and on settlement date to its fair value. If the grantee chooses cash settlement, then the cash payment settles the liability. Any equity component previously recognized in equity remains in equity. If the grantee employee chooses settlement in equity instruments, then the liability is transferred to equity as consideration for issuing the equity instruments. |
4. Summary of Significant Ac_13
4. Summary of Significant Accounting Policies: (l) Warrants (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(l) Warrants | (l) Warrants Share purchase warrants (each a “Warrant”) are classified as a component of equity. Warrants issued along with shares in an equity unit financing are measured using the residual approach, whereby the fair value of the Warrant is determined after deducting the fair value of the shares from the unit price less applicable financing costs. Warrants issued for broker/financing compensation, are recognized at the fair value using Black-Scholes at the date of issuance. Warrants are initially recorded as a part of the reserves in warrant in equity at the recognized fair value. Upon exercise of the Warrants, the previously recognized fair value of the Warrants exercised is reallocated to share capital from warrants reserve. Proceeds generated from the payment of the exercise price are also allocated to share capital. Amounts recorded for expired unexercised warrants are transferred to accumulated deficit in the period of which the expiry occurs. |
4. Summary of Significant Ac_14
4. Summary of Significant Accounting Policies: (m) Flow-Through Shares (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(m) Flow-Through Shares | (m) Flow-Through Shares Proceeds received from the issuance of flow-through shares are restricted to be used only for Canadian resource property exploration expenditures within a two-year period. The portion of the proceeds received but not yet expended at the end of the year is disclosed separately. The issuance of flow-through common shares results in the tax deductibility of the qualifying resource expenditures funded from the proceeds of the sales of such common shares being transferred to the purchasers of the shares. On the issuance of such shares, the Company bifurcates the flow-through shares into a flow-through share premium, equal to the estimated fair value of the premium that investors pay for the flow-through tax feature, which is recognized as a liability, and equity values of share capital and/or warrants. As related exploration expenditures are incurred, the Company derecognizes the premium liability and recognizes the related recovery. |
4. Summary of Significant Ac_15
4. Summary of Significant Accounting Policies: (n) Loss Per Share (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(n) Loss Per Share | (n) Loss Per Share Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted loss per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted (loss) earnings per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. |
4. Summary of Significant Ac_16
4. Summary of Significant Accounting Policies: (o) Foreign Currency Translation (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(o) Foreign Currency Translation | (o) Foreign Currency Translation Monetary assets and liabilities denominated in currencies other than CAD are translated into CAD at the rate of the consolidated financial statements of the Company are prepared in its functional currency, determined on the basis of the primary economic environment in which the entity operates. Given that operations are in Canada, the presentation and functional currency of the Company is the Canadian dollar. Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing at the transaction dates. At each reporting date, monetary items denominated in foreign currencies are translated into the entity’s functional currency at the then prevailing rates and non-monetary items measured at historical cost are translated into the entity’s functional currency at rates in effect at the date the transaction took place. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are included in the consolidated statements of loss and comprehensive loss for the period in which they arise. |
4. Summary of Significant Ac_17
4. Summary of Significant Accounting Policies: (p) Related Party Transactions (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(p) Related Party Transactions | (p) Related Party Transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. |
4. Summary of Significant Ac_18
4. Summary of Significant Accounting Policies: (q) Adoption of New Accounting Standards and Amendments (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Policies | |
(q) Adoption of New Accounting Standards and Amendments | (q) Adoption of New Accounting Standards and Amendments The Company adopted the following amendments, effective July 1, 2022. The changes were made in accordance with the applicable transitional provisions. The Company had assessed that no material impact is expected upon the adoption of the following amendments on its consolidated financial statements: 4. Summary of Significant Accounting Policies (continued) (q) Adoption of New Accounting Standards and Amendments (continued) Amendments to IAS 37 – Provisions, Contingent Liabilities and Contingent Assets (“IAS 37”) In May 2020, the IASB issued amendments to update IAS 37. The amendments specify that in assessing whether a contract is onerous under IAS 37, the cost of fulfilling a contract includes both the incremental costs and an allocation of costs that relate directly to contract activities. The amendments also include examples of costs that do, and do not, relate directly to a contract. Amendments to IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”) In February 2021, the IASB issued Definition of Accounting Estimates |
2. Restatement of Previously _2
2. Restatement of Previously Reported Consolidated Financial Statements: Schedule of Consolidated Statement of Financial Position and Changes in Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Consolidated Statement of Financial Position and Changes in Shareholders' Equity | Consolidated Statement of Financial Position and Changes in Shareholders’ Equity Previously reported Adjustments Restated $ $ $ Liabilities Other liabilities - 820,612 820,612 Total Current Liabilities 3,062,917 820,612 3,883,529 Total Liabilities 3,094,024 820,612 3,914,636 Shareholders’ Equity Reserve for restricted share units 821,906 (735,268) 86,638 Accumulated deficit (24,610,379) (85,344) (24,695,723) Total Shareholders’ Equity 23,324,964 (820,612) 22,504,352 Consolidated Statement of Loss and Comprehensive Loss Previously reported Adjustments Restated $ $ $ Expenses Stock-based compensation 2,544,905 85,344 2,630,249 Total Expenses (16,079,771) (85,344) (16,165,115) Net Loss and Comprehensive Loss (15,377,601) (85,344) (15,462,945) Consolidated Statement of Cash Flows Previously reported Adjustments Restated $ $ $ Operating Activities Net loss for the year (15,377,601) (85,344) (15,462,945) Stock-based compensation 2,544,905 85,344 2,630,249 |
4. Summary of Significant Ac_19
4. Summary of Significant Accounting Policies: (d) Financial Instruments: Schedule of Financial Assets and Financial Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Financial Assets and Financial Liabilities | Cash FVTPL Due to/from related parties Amortized cost Accounts payable Amortized cost Loan payable Amortized cost Lease liabilities Amortized cost Derivative liabilities FVTPL Other liabilities FVTPL |
6. Prepaid Expenses_ Schedule o
6. Prepaid Expenses: Schedule of prepaid expenses (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of prepaid expenses | June 30, 2023 June 30, 2022 June 30, 2021 $ $ $ Prepaid insurance 283,307 483,278 4,796 Advances made to suppliers and deposits 600,565 448,872 63,177 883,872 932,150 67,973 |
7. Exploration and Evaluation_2
7. Exploration and Evaluation Assets: Schedule of Movement Of The Company's EE Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Movement Of The Company's EE Assets | $ Balance, June 30, 2020 5,396,879 Exploration and evaluation expenditures 333,345 Balance, June 30, 2021 5,730,224 Exploration and evaluation expenditures 6,347,360 Balance, June 30, 2022 12,077,584 Exploration and evaluation expenditures 9,364,448 Balance, June 30, 2023 21,442,032 |
7. Right-of-Use Assets_ Schedul
7. Right-of-Use Assets: Schedule of Right of Use Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Right of Use Assets | $ Cost Balance, June 30, 2022 and 2021 - Additions for right-of-use assets 63,360 Balance, June 30, 2023 63,360 Accumulated Amortization Balance, June 30, 2022 and 2021 - Depreciation 2,640 Balance, June 30, 2023 2,640 Net Book Value June 30, 2022 and 2021 - June 30, 2023 60,720 |
9. Accounts Payable and Accru_2
9. Accounts Payable and Accrued Liabilities Disclosure: Schedule of Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Accounts Payable and Accrued Liabilities | June 30, 2023 June 30, 2022 June 30, 2021 $ $ $ Trade payables 722,376 568,065 215,640 Accrued liabilities 301,758 614,384 46,485 1,024,134 1,182,449 262,125 |
11. Convertible Debentures_ Dis
11. Convertible Debentures: Disclosure of Debentures (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Disclosure of Debentures | $ Balance, June 30, 2020 - Principal value of convertible debentures 865,263 Discount on proceeds received (45,263) Cash commission (15,000) Allocation to conversion feature (442,589) Allocation to warrant (90,769) Value at initial recognition 271,642 Accretion expense 101,565 Interest expense 38,699 Amortization of transaction costs 11,233 Balance, June 30, 2021 423,139 Accretion expense 91,895 Interest expense 34,990 Amortization of transaction costs 50,617 Conversion of Debentures (600,641) Balance, June 30, 2022 - |
12. Lease Liabilities_ Schedule
12. Lease Liabilities: Schedule of Lease Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Lease Liabilities | $ Balance, June 30, 2022 and 2021 - Additions of lease 63,360 Lease payments (2,986) Accretion on lease liabilities 654 Balance, June 30, 2023 61,028 $ Current 29,921 Non-current 31,107 61,028 |
13. Derivative Liabilities_ Sch
13. Derivative Liabilities: Schedule of Changes to Derivative Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Changes to Derivative Liabilities | $ Balance, June 30, 2020 - Fair value of derivative liability on date of issuance 442,589 Fair value changes of derivative liability – conversion feature (32,676) Balance, June 30, 2021 409,913 Fair value changes of derivative liability – conversion feature (153,155) Fair value allocated on conversion of Debentures (256,758) Fair value of derivative liability – Finders’ Warrants 1,237,681 Fair value changes of derivative liability – Finders’ Warrants (950,684) Balance, June 30, 2022 286,997 Fair value of derivative liabilities on date of issuance 1,388,790 Fair value changes of derivative liability – Finders’ Warrants 92,028 Fair value changes of derivative liability – Incentive Warrants (7,952) Fair value changes of derivative liability – Settlement Warrants 162,383 Balance, June 30, 2023 1,922,246 |
15. Share Capital_ Schedule of
15. Share Capital: Schedule of common shares issued and outstanding (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of common shares issued and outstanding | Number of common shares Amount # $ Balance, June 30, 2020 13,008,006 5,745,369 Shares issued from exercise of warrants (a) 2,170 4,883 Balance, June 30, 2021 13,010,176 5,750,252 Shares issued on initial public offering (b) 3,680,000 34,988,520 Shares issue costs (b) - (4,233,129) Shares issued on conversion of debentures (c) 751,163 857,399 Shares issued on vesting of restricted share units (d) 240,000 1,950,645 Shares issued from exercise of warrants (e) 243,419 419,946 Balance, June 30, 2022 17,924,758 39,733,633 Shares issued on debt settlement (f) 240,000 800,366 Shares issued from exercises of warrants (g) 21,052 36,774 Balance, June 30, 2023 18,185,810 40,570,773 |
17. Reserve for Share-Based P_2
17. Reserve for Share-Based Payments: Schedule of Stock Option Activity Table (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Stock Option Activity Table | 2023 2022 2021 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price # $ # $ # $ Outstanding, beginning of year 1,620,489 7.23 820,000 2.50 820,000 0.50 Granted 350,000 USD 2.50 1,269,386 USD 7.50 - - Cancelled (360,000) 2.50 (300,000) 2.50 (160,000) (1) 2.50 Cancelled (148,082) USD 7.50 (168,897) USD 7.50 - - Reinstated - - - - 160,000 (1) 2.50 Outstanding, end of year 1,462,407 7.53 1,620,489 7.23 820,000 2.50 Exercisable, end of year 1,462,407 7.53 1,070,246 6.08 820,000 2.50 (1) |
17. Reserve for Share-Based P_3
17. Reserve for Share-Based Payments: Schedule of Information of Stock Options Outstanding Table (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Information of Stock Options Outstanding Table | Date of expiry Number of options outstanding Number of options exercisable Exercise price Weighted average remaining contractual life # # $ Years November 18, 2026 952,407 952,407 USD 7.50 3.39 January 30, 2028 350,000 350,000 USD 2.50 4.59 May 24, 2029 160,000 160,000 USD 2.50 5.90 1,462,407 1,462,407 7.53 3.95 |
18. Reserve for Warrants_ Sched
18. Reserve for Warrants: Schedule Summarizes the Warrant Activity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule Summarizes the Warrant Activity | 2023 2022 2021 Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price Number of warrants Weighted Average exercise price # $ # $ # $ Outstanding, beginning of year 821,106 3.93 880,525 1.55 551,929 1.59 Issued from debentures financing - - - - 361,098 1.50 Issued as Finders’ Warrants from IPO - - 184,000 USD 9.375 - - Issued as Incentive Warrants 75,000 USD 3.00 - - - - Issued as Incentive Warrants 75,000 USD 4.00 - - - - Issued as Incentive Warrants 75,000 USD 5.00 - - - - Issued as Settlement Warrants 500,000 USD 2.50 - - - - Exercised (21,052) 1.50 (243,419) 1.50 (2,170) 2.25 Expired - - - - (30,332) 2.25 Outstanding, end of year 1,525,054 4.00 821,106 3.93 880,525 1.55 |
18. Reserve for Warrants_ Sch_2
18. Reserve for Warrants: Schedule of information of warrants outstanding (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of information of warrants outstanding | Date of expiry Number of warrants outstanding Exercise price Weighted average remaining contractual life # $ Years November 19, 2023 32,000 1.25 0.39 November 19, 2023 512,627 1.50 0.39 November 19, 2023 71,427 2.25 0.39 February 17, 2025 75,000 USD 3.00 1.64 February 17, 2025 75,000 USD 4.00 1.64 February 17, 2025 75,000 USD 5.00 1.64 March 31, 2026 500,000 USD 2.50 2.75 November 19, 2026 184,000 USD 9.375 3.40 1,525,054 4.00 1.71 |
19. Basic and Diluted Loss pe_2
19. Basic and Diluted Loss per Share: Earnings per share (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Earnings per share | 2023 2022 2021 $ $ $ Net Loss (15,462,945) (9,446,454) (552,436) # # # Basic weighted-average number of shares outstanding 18,033,851 15,884,041 13,008,669 Assumed conversion of dilutive stock options and warrants - - - Diluted weighted-average number of shares outstanding 18,033,851 15,884,041 13,008,669 $ $ $ Basic and diluted loss per share (0.85) (0.60) (0.04) |
20. Related Party Transactions_
20. Related Party Transactions: Schedule Of Remuneration Of Directors And Other Members Of Key Management Personnel (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule Of Remuneration Of Directors And Other Members Of Key Management Personnel | 2023 2022 2021 $ $ $ Directors’ and officers’ consulting fees 951,347 687,585 200,858 Cash payment 334,738 - - Exploration and evaluation expenditures 415,325 220,765 48,000 Addendum payments 2,554,830 - - 4,256,240 908,350 248,858 |
20. Related Party Transaction_2
20. Related Party Transactions: Schedule Of All Related Party Balances Payable For Services And Business Expense Reimbursements Rendered (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule Of All Related Party Balances Payable For Services And Business Expense Reimbursements Rendered | All related party balances payable, for services and business expense reimbursements rendered as at June 30, 2023, 2022 and 2021, are non-interest bearing and payable on demand, and are comprised of the following: 2023 2022 2021 $ $ $ Payable to officers and directors 86,616 110,274 236,402 (Receivable) payable to Nova Minerals Ltd. (10,287) (10,287) 43,240 76,329 99,987 279,642 |
21. Income Taxes_ Schedule of C
21. Income Taxes: Schedule of Combined Canadian Federal and Provincial Statutory Income Tax Rate (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Combined Canadian Federal and Provincial Statutory Income Tax Rate | 2023 2022 2021 $ $ $ Net loss before income tax (15,462,945) (9,446,454) (552,436) Combined federal and provincial statutory income tax rates 27% 27% 27% Expected income tax recovery at statutory rates 4,174,995 2,550,543 149,158 Non-deductible differences (225,472) (1,102,753) (7,310) Change in unrecognized deductible temporary differences (3,949,523) (1,447,790) (141,848) Total income tax recovery - - - |
21. Income Taxes_ Schedule of D
21. Income Taxes: Schedule of Deductible Temporary Differences (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Deductible Temporary Differences | 2023 2022 2021 $ $ $ Non-capital losses carried forward 5,226,507 1,110,151 300,805 Exploration and evaluation assets (100,081) (100,058) (109,447) Other items 493,493 660,396 15,278 5,619,919 1,670,489 206,636 |
21. Financial Risks_ Schedule o
21. Financial Risks: Schedule of contractual obligations (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of contractual obligations | Less than 1 year 1 to 3 years 3 to 5 years Total $ $ $ $ Accounts payable and accrued liabilities 1,024,134 - - 1,024,134 Due to related parties 86,616 - - 86,616 Lease liabilities 29,921 31,107 - 61,028 Derivative liabilities 1,922,246 - - 1,922,246 Other liabilities 820,612 - - 820,612 Total 3,883,529 31,107 - 3,914,636 |
21. Financial Risks_ Schedule_2
21. Financial Risks: Schedule of Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Tables/Schedules | |
Schedule of Fair Value Measurements | Level 1 Level 2 Level 3 Total $ $ $ $ Cash 3,480,880 - - 3,480,880 Derivative liabilities - (1,922,246) - (1,922,246) Other liabilities - (820,612) - (820,612) |
1. Nature of Operations and G_2
1. Nature of Operations and Going Concern (Details) | 12 Months Ended | ||||
Nov. 23, 2021 USD ($) $ / shares shares | Nov. 23, 2021 CAD ($) | Jun. 30, 2023 CAD ($) | Jun. 30, 2022 CAD ($) | Jun. 30, 2021 CAD ($) | |
Details | |||||
Common shares issued (in shares) | shares | 3,680,000 | ||||
Weighted average share price | $ / shares | $ 9.51 | ||||
Weighted Average Share Price 2019 - USD | $ / shares | $ 7.5 | ||||
Gross Proceeds | $ 34,988,520 | $ 0 | $ 34,988,520 | $ 0 | |
Gross Proceeds | $ 27,600,000 | ||||
Net loss for the year | 15,462,945 | 9,446,454 | 552,436 | ||
Cash Flows (used in) Operating Activities | 10,298,791 | 3,098,972 | 363,476 | ||
Accumulated deficit | $ 24,695,723 | $ 10,545,535 | $ 2,271,524 |
2. Restatement of Previously _3
2. Restatement of Previously Reported Consolidated Financial Statements: Schedule of Consolidated Statement of Financial Position and Changes in Shareholders' Equity (Details) - CAD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other liabilities | $ 820,612 | $ 0 | ||
Total Current Liabilities | 3,883,529 | 1,780,877 | $ 1,374,819 | |
Total Liabilities | 3,914,636 | 1,780,877 | ||
Reserve for restricted share units | 86,638 | 0 | ||
Accumulated deficit | (24,695,723) | (10,545,535) | (2,271,524) | |
Total Shareholders' Equity | 22,504,352 | 35,325,716 | 4,752,866 | $ 5,207,625 |
Stock-based compensation | 2,630,249 | 8,035,506 | 0 | |
Total Expenses | (16,165,115) | (11,069,570) | (595,598) | |
Net Loss and Comprehensive Loss | (15,462,945) | (9,446,454) | (552,436) | |
Net loss for the year | (15,462,945) | (9,446,454) | (552,436) | |
Stock-based compensation | 2,630,249 | $ 8,035,506 | $ 0 | |
Previously Reported | ||||
Other liabilities | 0 | |||
Total Current Liabilities | 3,062,917 | |||
Total Liabilities | 3,094,024 | |||
Reserve for restricted share units | 821,906 | |||
Accumulated deficit | (24,610,379) | |||
Total Shareholders' Equity | 23,324,964 | |||
Stock-based compensation | 2,544,905 | |||
Total Expenses | (16,079,771) | |||
Net Loss and Comprehensive Loss | (15,377,601) | |||
Net loss for the year | (15,377,601) | |||
Stock-based compensation | 2,544,905 | |||
Revision of Prior Period, Adjustment | ||||
Other liabilities | 820,612 | |||
Total Current Liabilities | 820,612 | |||
Total Liabilities | 820,612 | |||
Reserve for restricted share units | (735,268) | |||
Accumulated deficit | (85,344) | |||
Total Shareholders' Equity | (820,612) | |||
Stock-based compensation | 85,344 | |||
Total Expenses | (85,344) | |||
Net Loss and Comprehensive Loss | (85,344) | |||
Net loss for the year | (85,344) | |||
Stock-based compensation | $ 85,344 |
4. Summary of Significant Ac_20
4. Summary of Significant Accounting Policies: (d) Financial Instruments: Schedule of Financial Assets and Financial Liabilities (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Cash | |
Financial Assets And Financial Liabilities | FVTPL |
Due to/from Related Parties | |
Financial Assets And Financial Liabilities | Amortized cost |
Accounts Payable | |
Financial Assets And Financial Liabilities | Amortized cost |
Loan Payable | |
Financial Assets And Financial Liabilities | Amortized cost |
Lease Liabilities | |
Financial Assets And Financial Liabilities | Amortized cost |
Derivative Liability | |
Financial Assets And Financial Liabilities | FVTPL |
6. Prepaid Expenses_ Schedule_2
6. Prepaid Expenses: Schedule of prepaid expenses (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Details | |||
Prepaid insurance | $ 283,307 | $ 483,278 | $ 4,796 |
Advances made to suppliers and deposits | 600,565 | 448,872 | 63,177 |
Prepaids and deposits | $ 883,872 | $ 932,150 | $ 67,973 |
7. Exploration and Evaluation_3
7. Exploration and Evaluation Assets: Schedule of Movement Of The Company's EE Assets (Details) - CAD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Details | ||||
Intangible exploration and evaluation assets | $ 21,442,032 | $ 12,077,584 | $ 5,730,224 | $ 5,396,879 |
Exploration and evaluation expenditures | $ 9,364,448 | $ 6,347,360 | $ 333,345 |
7. Right-of-Use Assets_ Sched_2
7. Right-of-Use Assets: Schedule of Right of Use Assets (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Details | |||
Additions to right-of-use assets | $ 63,360 | ||
Depreciation on right-of-use assets | 2,640 | $ 0 | $ 0 |
Right-of-use assets | $ 60,720 | $ 0 |
9. Accounts Payable and Accru_3
9. Accounts Payable and Accrued Liabilities Disclosure: Schedule of Accounts Payable and Accrued Liabilities (Details) - CAD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Details | |||
Trade payables | $ 722,376 | $ 568,065 | $ 215,640 |
Accrued liabilities | 301,758 | 614,384 | 46,485 |
Accounts payable and accrued liabilities | $ 1,024,134 | $ 1,182,449 | $ 262,125 |
10. Loan Payable (Details)
10. Loan Payable (Details) | Nov. 29, 2021 USD ($) | Nov. 29, 2021 CAD ($) |
Details | ||
Loan Agreement - USD | $ 692,970 | |
Loan Agreement | $ 873,253 | |
Borrowings, interest rate basis | 4.7% | 4.7% |
Monthly Installments Payable | $ 78,512 | |
Gross loan commitments | $ 16,226 |
11. Convertible Debentures (Det
11. Convertible Debentures (Details) | 1 Months Ended | 12 Months Ended | |||
Nov. 23, 2021 $ / shares shares | Feb. 28, 2021 CAD ($) | Jun. 30, 2023 | Jun. 30, 2022 CAD ($) | Jun. 30, 2021 CAD ($) | |
Details | |||||
Convertible Debt Issue | $ 865,263 | ||||
Debentures discount percentage | 5% | ||||
Proceeds Value | $ 805,000 | ||||
Cash Commission Amount | $ 15,000 | ||||
Interest Accrued Description | (i) 12% per annum or (ii) Wall Street Prime Rate + 7%, is convertible, at the option of the Debenture holder, into common shares of the Company at a price that is the lesser of (i) $1.25 per share or (ii) a 20% discount to the price of a Liquidity Transaction (defined below). The conversion feature expires (the “Expiry Date”) on the earlier of 24 months from execution, or the closing of a registered public offering (the “Liquidity Transaction”) | ||||
Interest Accrues Lesser Description | In the event of a default, interest accrues at the lesser of (i) 24% per annum or (ii) the maximum legally authorized rate. The Company has the right to repay the note prior to maturity at 110% of the then outstanding principal and interest. The Company must provide 30 days’ notice and the Lender shall have the right to convert prior to the 30-day notice expiration | ||||
Fair Value Conversion Feature Description | The Company determined the fair value of the conversion feature component upon initial recognition was $442,589. The residual $362,411 value of the $805,000 net proceeds received was allocated on a pro-rata basis between the debt component ($271,642) and the warrants component ($90,769) based on their relative fair values. The debt component was discounted at a rate of 20% and 346,104 subscriber warrants were valued using Black-Scholes, based on the following assumptions: expected life of 2.5 years, expected volatility of 70%, expected dividend yield of nil, risk-free interest of 0.18% – 0.22%, market price of $1.50, and an exercise price of $1.50. During the year ended June 30, 2022, the Company recognized accretion expense of $91,895 (2021 – $101,565) relating to accreting the debt component of the Debentures up to their principal value, and interest of $34,990 (2021 – $38,699) | ||||
Transaction cost descriptions | The Company incurred $24,507 in transaction costs pursuant to the issuance of the Debentures, including paying a $15,000 cash commission, issuing 15,000 finders’ warrants (each a “Finder’s Warrants”) exercisable at $1.50 for the earlier of (i) 60 months from the grant date or (ii) 24 months from the Company completing a listing on a Canadian stock exchange and $27 in bank charges. These costs, along with the $45,263 discount, are being amortized over the term of the Debentures. The 15,000 Finders’ Warrants were valued using Black-Scholes, based on the following assumption: expected life of 2.5 years, expected volatility of 70%, expected dividend yield of nil, risk-free interest rate of 0.18% – 0.22%, market price of $1.50, and an exercise price of $1.50 | ||||
Amortized Transaction Cost | $ 56,512 | $ 13,284 | |||
Warrants Reserve Value | $ 2,025 | ||||
Common per share (in CAD per share) | $ / shares | $ 1.25 | ||||
Issuance of Conversion of Debentures (in Shares) | shares | 751,163 |
11. Convertible Debentures_ D_2
11. Convertible Debentures: Disclosure of Debentures (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Details | |||
Convertible Debentures and Derivative Liability | $ 423,139 | $ 0 | |
Principal Value of Convertible Debentures | 865,263 | ||
Discount on proceeds received | (45,263) | ||
Cash commission | (15,000) | ||
Allocation to conversion feature | (442,589) | ||
Allocation to warrant | (90,769) | ||
Value at initial recognition | 271,642 | ||
Accretion expense | $ 91,895 | 101,565 | |
Interest expense | 34,990 | 38,699 | |
Amortization of transaction costs | 50,617 | $ 11,233 | |
Conversion of Debentures | $ (600,641) |
12. Lease Liabilities_ Schedu_2
12. Lease Liabilities: Schedule of Lease Liabilities (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Details | |||
Lease liabilities | $ 61,028 | $ 0 | |
Additions to right-of-use assets | 63,360 | ||
Lease payments | (2,986) | 0 | $ 0 |
Accretion expense | 654 | 0 | $ 0 |
Lease liabilities - current portion | 29,921 | 0 | |
Lease liabilities | $ 31,107 | $ 0 |
13. Derivative Liabilities (Det
13. Derivative Liabilities (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Feb. 28, 2021 | |
Details | |||
Derivative financial liabilities | $ 442,589 | ||
Gains on change in fair value of derivatives | $ 153,155 | $ 32,676 | |
Allocated to Share Capital | $ 256,758 |
13. Derivative Liabilities_ S_2
13. Derivative Liabilities: Schedule of Changes to Derivative Liabilities (Details) - CAD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Details | ||||
Intangible assets other than goodwill | $ 1,922,246 | $ 286,997 | $ 409,913 | $ 0 |
Fair value of derivative liability on date of issuance | 1,388,790 | 442,589 | ||
Fair value changes of derivative liability –conversion feature | (153,155) | $ (32,676) | ||
Fair value allocated on conversion of Debentures | (256,758) | |||
Fair value of derivative liability - Finders' Warrants | 1,237,681 | |||
Fair value changes of derivative liability –Finders’ Warrants | 92,028 | $ (950,684) | ||
Fair value changes of derivative liability - Incentive Warrants | (7,952) | |||
Fair value changes of derivative liability - Settlement Warrants | $ 162,383 |
14. Other Liabilities (Details)
14. Other Liabilities (Details) - CAD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Details | ||
Other liabilities | $ 820,612 | $ 0 |
15. Share Capital_ Schedule o_2
15. Share Capital: Schedule of common shares issued and outstanding (Details) - CAD ($) | 12 Months Ended | ||||
Nov. 23, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total Shareholders' Equity | $ 22,504,352 | $ 35,325,716 | $ 4,752,866 | $ 5,207,625 | |
Increase (decrease) through exercise of warrants, equity | 31,578 | 365,113 | $ 4,883 | ||
Increase (decrease) through change in equity of subsidiaries, equity | 34,988,520 | ||||
Share issue related cost | (4,233,129) | ||||
Issuance of Conversion of Debentures (in Shares) | 751,163 | ||||
Issuance of Conversion Of Debenture | 863,294 | ||||
Issue of equity | $ 0 | ||||
Issuance of shares on debt settlement | $ 800,366 | ||||
Issued capital | |||||
Number of shares outstanding | 18,185,810 | 17,924,758 | 13,010,176 | 13,008,006 | |
Total Shareholders' Equity | $ 40,570,773 | $ 39,733,633 | $ 5,750,252 | $ 5,745,369 | |
Exercise of Warrants | 21,052 | 243,419 | 2,170 | ||
Increase (decrease) through exercise of warrants, equity | $ 36,774 | $ 419,946 | $ 4,883 | ||
Increase (decrease) in number of ordinary shares issued | 3,680,000 | ||||
Increase (decrease) through change in equity of subsidiaries, equity | $ 34,988,520 | ||||
Share issue related cost | $ (4,233,129) | ||||
Issuance of Conversion of Debentures (in Shares) | 751,163 | ||||
Issuance of Conversion Of Debenture | $ 857,399 | ||||
Issuance of Shares on Vesting of RSUs Shares | 470,000 | 240,000 | |||
Issue of equity | $ 1,950,645 | ||||
Issuance of shares on debt settlement, shares | 240,000 | ||||
Issuance of shares on debt settlement | $ 800,366 |
16. Reserve for RSUs (Details)
16. Reserve for RSUs (Details) - CAD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Issue of equity | $ 0 | |
Increase (decrease) through share-based payment transactions, equity | $ 1,809,637 | 8,035,506 |
Reserve of change in value of time value of options | ||
Issue of equity | 209,422 | 1,950,645 |
Increase (decrease) through share-based payment transactions, equity | $ 86,638 | $ 1,950,645 |
Issued capital | ||
Issuance of Shares on Vesting of RSUs Shares | 470,000 | 240,000 |
Issue of equity | $ (1,950,645) |
17. Reserve for Share-Based P_4
17. Reserve for Share-Based Payments: Schedule of Stock Option Activity Table (Details) - $ / shares | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Options cancelled and reinstated as a result of the resignation and reincorporation of a director | 160,000 | |||
Stock Options | ||||
Number Of Options Outstanding | 1,462,407 | 1,620,489 | 820,000 | 820,000 |
Weighted Average Exercise Price Outstanding | $ 7.53 | $ 7.23 | $ 2.5 | $ 0.5 |
Number Of Options Granted | 350,000 | 1,269,386 | 0 | |
Weighted Average Exercise Price Granted | $ 2.5 | $ 7.5 | $ 0 | |
Number Of Options Cancelled Beginning | (360,000) | (300,000) | (160,000) | |
Weighted Average Exercise Price Cancelled Beginning | $ 2.5 | $ 2.5 | $ 2.5 | |
Number Of Options Cancelled Ending | (148,082) | (168,897) | 0 | |
Weighted Average Exercises Price Cancelled | $ 7.5 | $ 7.5 | $ 0 | |
Number Of Option Reinstatedin Dollars | 0 | 0 | 160,000 | |
Number Of Options Exercisable End Of Year | 1,462,407 | 1,070,246 | 820,000 | |
Weighted Average Exercise Price Exercisable End Of Year | $ 7.53 | $ 6.08 | $ 2.5 |
17. Reserve for Share-Based P_5
17. Reserve for Share-Based Payments (Details) | 12 Months Ended | ||||
Jun. 29, 2022 CAD ($) | Nov. 18, 2021 CAD ($) shares | Jun. 30, 2023 CAD ($) | Jun. 30, 2022 CAD ($) | Nov. 18, 2021 $ / shares | |
Options Granted Shares | shares | 1,269,386 | ||||
Exercise price of outstanding share options | $ / shares | $ 7.5 | ||||
Expected volatility, share options granted | 100% | ||||
Expected dividend as percentage, share options granted | 0% | ||||
Risk free interest rate, share options granted | 1.47% | ||||
Tax rate effect from change in tax rate | 20% | ||||
Expected Life | 5 years | ||||
Fair Value Attributable | $ 7,167,552 | ||||
Stockbased Compensations | $ 168,897 | $ 848,520 | |||
Cancellation of Stock Options | $ 0 | $ 0 | |||
Retained earnings | |||||
Cancellation of Stock Options | $ 1,312,757 | $ 1,172,443 |
17. Reserve for Share-Based P_6
17. Reserve for Share-Based Payments: Schedule of Information of Stock Options Outstanding Table (Details) - Stock Options - $ / shares | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Number Of Options Outstanding | 1,462,407 | 1,620,489 | 820,000 | 820,000 |
Number Of Options Exercisable | 1,462,407 | |||
Exercise Price | $ 7.53 | |||
Weighted Averages Remaining Contractual Lif | 3 years 11 months 12 days | |||
November 18, 2026 | ||||
Number Of Options Outstanding | 952,407 | |||
Number Of Options Exercisable | 952,407 | |||
Exercise Price | $ 7.5 | |||
Weighted Averages Remaining Contractual Lif | 3 years 4 months 20 days | |||
January 30, 2028 | ||||
Number Of Options Outstanding | 350,000 | |||
Number Of Options Exercisable | 350,000 | |||
Exercise Price | $ 2.5 | |||
Weighted Averages Remaining Contractual Lif | 4 years 7 months 2 days | |||
May 24, 2029 | ||||
Number Of Options Outstanding | 160,000 | |||
Number Of Options Exercisable | 160,000 | |||
Exercise Price | $ 2.5 | |||
Weighted Averages Remaining Contractual Lif | 5 years 10 months 24 days |
18. Reserve for Warrants_ Sch_3
18. Reserve for Warrants: Schedule Summarizes the Warrant Activity (Details) - Warrants - $ / shares | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Number of Warrants Outstanding | 1,525,054 | 821,106 | 880,525 | 551,929 |
Weighted Average Exercise Price Outstanding | $ 4 | $ 3.93 | $ 1.55 | $ 1.59 |
Number Of Warrant Issued From Debentures Financing | 0 | 0 | 361,098 | |
Issued from debentures financing, per share | $ 1.5 | |||
Number Of Warrant Issued Of Finders Warrants From IPO | 0 | 184,000 | 0 | |
Issued as Finders' Warrants from IPO, per share | $ 9.375 | |||
Number of Issued as Incentive Warrants | 75,000 | |||
Issued as Incentive Warrants - per share | $ 3 | |||
Number of Issued as Incentive Warrants 2 | 75,000 | |||
Issued as Incentive Warrants - per share 2 | $ 4 | |||
Number of Issued as Incentive Warrants 3 | 75,000 | |||
Issued as Incentive Warrants - per share 3 | $ 5 | |||
Number of Issued as Settlement Warrants | 500,000 | |||
Issued as Settlement Warrants - per share | $ 2.5 | |||
Number Of Warrants Exercised | (21,052) | (243,419) | (2,170) | |
Number of Warrants Exercised, per share | $ 1.5 | $ 1.5 | $ 2.25 | |
Number of Warrants Expired | (30,332) | |||
Number of Warrants Expired, per share | $ 2.25 |
18. Reserve for Warrants (Detai
18. Reserve for Warrants (Details) | 12 Months Ended | ||
Jun. 30, 2023 CAD ($) | Jun. 30, 2022 USD ($) | Nov. 23, 2021 shares | |
Description of Warrant Issuances | the Company issued 346,108 Warrants to subscribers of the Debentures. Debenture holders were eligible to receive such number of Warrants equal to half of the number of common shares issuable upon conversion of the Debentures at the conversion price of $1.25. Each Warrant is exercisable into one common share at an exercise price of $1.50 per Warrant until the earlier of (i) 60 months from the grant date or (ii) 24 months from the Company completing a listing on a Canadian stock exchange. These Warrants were valued at $90,769, recorded to the warrants reserve after allocating, on a pro-rata basis, the $362,411 residual value of the Debentures between the debt and warrants components after the initial allocation of $442,589 of the $805,000 net proceeds received to the conversion feature | ||
Debenture Transaction Costs | $ 2,025 | ||
Proceeds from exercise of warrants | $ 9.375 | ||
Warrants | |||
Number of shares issued | shares | 184,000 |
18. Reserve for Warrants_ Sch_4
18. Reserve for Warrants: Schedule of information of warrants outstanding (Details) - Warrants | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number Of Options Outstanding | shares | 1,525,054 |
Exercise Price | $ / shares | $ 4 |
Weighted Averages Remaining Contractual Lif | 1 year 8 months 15 days |
November 19, 2023 | |
Number Of Options Outstanding | shares | 32,000 |
Exercise Price | $ / shares | $ 1.25 |
Weighted Averages Remaining Contractual Lif | 4 months 20 days |
November 19, 2023 - 2 | |
Number Of Options Outstanding | shares | 512,627 |
Exercise Price | $ / shares | $ 1.5 |
Weighted Averages Remaining Contractual Lif | 4 months 20 days |
November 19, 2023 - 3 | |
Number Of Options Outstanding | shares | 71,427 |
Exercise Price | $ / shares | $ 2.25 |
Weighted Averages Remaining Contractual Lif | 4 months 20 days |
February 17, 2025 | |
Number Of Options Outstanding | shares | 75,000 |
Exercise Price | $ / shares | $ 3 |
Weighted Averages Remaining Contractual Lif | 1 year 7 months 20 days |
February 17, 2025 - 2 | |
Number Of Options Outstanding | shares | 75,000 |
Exercise Price | $ / shares | $ 4 |
Weighted Averages Remaining Contractual Lif | 1 year 7 months 20 days |
February 17, 2025 - 3 | |
Number Of Options Outstanding | shares | 75,000 |
Exercise Price | $ / shares | $ 5 |
Weighted Averages Remaining Contractual Lif | 1 year 7 months 20 days |
March 31, 2026 | |
Number Of Options Outstanding | shares | 500,000 |
Exercise Price | $ / shares | $ 2.5 |
Weighted Averages Remaining Contractual Lif | 2 years 9 months |
November 19, 2026 | |
Number Of Options Outstanding | shares | 184,000 |
Exercise Price | $ / shares | $ 9.375 |
Weighted Averages Remaining Contractual Lif | 3 years 4 months 24 days |
19. Basic and Diluted Loss pe_3
19. Basic and Diluted Loss per Share (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Details | |||
Profit (loss), attributable to owners of parent | $ 15,462,945 | $ 9,446,454 | $ 552,436 |
Diluted weighted-average number of shares outstanding | 18,033,851 | 15,884,041 | 13,008,669 |
19. Basic and Diluted Loss pe_4
19. Basic and Diluted Loss per Share: Earnings per share (Details) | 12 Months Ended | |||||
Jun. 30, 2023 $ / shares | Jun. 30, 2023 CAD ($) shares | Jun. 30, 2022 $ / shares | Jun. 30, 2022 CAD ($) shares | Jun. 30, 2021 $ / shares | Jun. 30, 2021 CAD ($) shares | |
Details | ||||||
Net Loss | $ | $ (15,462,945) | $ (9,446,454) | $ (552,436) | |||
Basic weighted-average number of shares outstanding | 18,033,851 | 15,884,041 | 13,008,669 | |||
Assumed conversion of dilutive stock options and warrants | 0 | 0 | 0 | |||
Diluted weighted-average number of shares outstanding | 18,033,851 | 15,884,041 | 13,008,669 | |||
Basic and diluted loss per share | $ / shares | $ (0.85) | $ (0.6) | $ (0.04) |
20. Related Party Transaction_3
20. Related Party Transactions: Schedule Of Remuneration Of Directors And Other Members Of Key Management Personnel (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Details | |||
Directors' and officers' consulting fees | $ 951,347 | $ 687,585 | $ 200,858 |
Cash payment | 334,738 | 0 | 0 |
Exploration and evaluation expenditures | 415,325 | 220,765 | 48,000 |
Addendum payments | 2,554,830 | 0 | 0 |
Total | $ 4,256,240 | $ 908,350 | $ 248,858 |
20. Related Party Transactions
20. Related Party Transactions (Details) | 12 Months Ended | |||||
Jun. 30, 2023 USD ($) shares | Jun. 30, 2023 CAD ($) shares | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CAD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2021 CAD ($) | |
Revenue from rendering of information technology consulting services | $ 492,377 | $ 585,615 | $ 200,858 | |||
Payment to Director of the Company | $ 250,000 | $ 334,738 | $ 0 | |||
Tangible exploration and evaluation assets | 415,325 | 220,765 | 48,000 | |||
Addendum Payments - fees | 1,672,988 | 881,842 | ||||
Addendum Payments - fees - USD | $ 1,224,040 | $ 648,020 | ||||
Stock Based Compensations | 2,422,516 | 8,035,506 | 0 | |||
Loss on shares-for-debt settlement | $ 157,502 | $ 0 | $ 0 | |||
Issued capital | ||||||
Issuance of shares on debt settlement, shares | shares | 240,000 | 240,000 |
20. Related Party Transaction_4
20. Related Party Transactions: Schedule Of All Related Party Balances Payable For Services And Business Expense Reimbursements Rendered (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Details | |||
Payable to officers and directors | $ 86,616 | $ 110,274 | $ 236,402 |
(Receivable) payable to Nova Minerals Ltd | (10,287) | (10,287) | 43,240 |
Amounts payable, related party transactions | $ 76,329 | $ 99,987 | $ 279,642 |
21. Income Taxes_ Schedule of_2
21. Income Taxes: Schedule of Combined Canadian Federal and Provincial Statutory Income Tax Rate (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Details | |||
Net loss before income tax | $ (15,462,945) | $ (9,446,454) | $ (552,436) |
Combined federal and provincial statutory income tax rates | 27% | 27% | 27% |
Expected income tax recovery at statutory rates | $ 4,174,995 | $ 2,550,543 | $ 149,158 |
Non-deductible differences | (225,472) | (1,102,753) | (7,310) |
Change in unrecognized deductible temporary differences | (3,949,523) | (1,447,790) | (141,848) |
Total income tax recovery | $ 0 | $ 0 | $ 0 |
21. Income Taxes_ Schedule of_3
21. Income Taxes: Schedule of Deductible Temporary Differences (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Details | |||
Non-capital losses carried forward | $ 5,226,507 | $ 1,110,151 | $ 300,805 |
Exploration and evaluation assets | (100,081) | (100,058) | (109,447) |
Other items | 493,493 | 660,396 | 15,278 |
Other comprehensive income, before tax | $ 5,619,919 | $ 1,670,489 | $ 206,636 |
21. Income Taxes (Details)
21. Income Taxes (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Details | |||
Tax effect of tax losses | $ 19,357,000 | $ 4,112,000 | $ 1,114,000 |
21. Financial Risks (Details)
21. Financial Risks (Details) - CAD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Details | |||
Cash | $ 3,840,880 | $ 23,792,408 | $ 318,844 |
Total Current Liabilities | $ 3,883,529 | $ 1,780,877 | $ 1,374,819 |
21. Financial Risks_ Schedule_3
21. Financial Risks: Schedule of contractual obligations (Details) - CAD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Not later than one year | |||
Accounts payable and accrued liabilities | $ 1,024,134 | ||
Payables to related parties | 86,616 | ||
Loans payable in default | 29,921 | ||
Non-current derivative financial liabilities | 1,922,246 | ||
Financial liabilities | 820,612 | ||
Later than one year and not later than three years | |||
Accounts payable and accrued liabilities | 0 | ||
Payables to related parties | 0 | ||
Loans payable in default | 31,107 | ||
Non-current derivative financial liabilities | 0 | ||
Financial liabilities | 0 | ||
Later than three years and not later than five years | |||
Accounts payable and accrued liabilities | 0 | ||
Payables to related parties | 0 | ||
Loans payable in default | 0 | ||
Non-current derivative financial liabilities | 0 | ||
Financial liabilities | 0 | ||
Accounts payable and accrued liabilities | 1,024,134 | $ 1,182,449 | $ 262,125 |
Payables to related parties | 86,616 | ||
Loans payable in default | 61,028 | ||
Non-current derivative financial liabilities | 1,922,246 | ||
Financial liabilities | $ 820,612 |
21. Financial Risks_ Schedule_4
21. Financial Risks: Schedule of Fair Value Measurements (Details) | Jun. 30, 2023 CAD ($) |
Level 1 of fair value hierarchy | |
Other cash and cash equivalents | $ 3,480,880 |
Non-current derivative financial liabilities | 0 |
Level 2 of fair value hierarchy | |
Other cash and cash equivalents | 0 |
Non-current derivative financial liabilities | (1,922,246) |
Level 3 of fair value hierarchy | |
Other cash and cash equivalents | 0 |
Non-current derivative financial liabilities | 0 |
Other cash and cash equivalents | 3,480,880 |
Non-current derivative financial liabilities | $ (1,922,246) |
22. Grant Income (Details)
22. Grant Income (Details) - CAD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Details | |||
Grant income | $ 109,750 | $ 109,745 | $ 0 |
23. Contingencies (Details)
23. Contingencies (Details) | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Minimum | |
Changes made to Consulting Agreements | $ 1,392,000 |
Maximum | |
Changes made to Consulting Agreements | $ 1,872,000 |