Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Entity Addresses [Line Items] | ||
Document Type | 40-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-39966 | |
Entity Registrant Name | New Found Gold Corp. | |
Entity Incorporation, State or Country Code | A1 | |
Entity Primary SIC Number | 1040 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 1600 - 595 Burrard Street | |
Entity Address, City or Town | Vancouver | |
Entity Address, State or Province | BC | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | V7X 1L4 | |
City Area Code | 604 | |
Local Phone Number | 612-2111 | |
Title of 12(b) Security | Common Shares, no par value | |
Trading Symbol | NFGC | |
Security Exchange Name | NYSEAMER | |
Annual Information Form | true | |
Audited Annual Financial Statements | true | |
Entity Common Stock, Shares Outstanding | 186,873,012 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
ICFR Auditor Attestation Flag | false | |
Document Financial Statement Error Correction | false | |
Entity Central Index Key | 0001840616 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Auditor Name | KPMG LLP | Crowe MacKay LLP |
Auditor Firm ID | 85 | 1462 |
Auditor Location | Vancouver, British Columbia, Canada | Vancouver, British Columbia, Canada |
Business Contact | ||
Entity Addresses [Line Items] | ||
Contact Personnel Name | C T Corporation System | |
Entity Address, Address Line One | 28 Liberty Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10005 | |
City Area Code | 212 | |
Local Phone Number | 894-8940 |
Statements of Financial Positio
Statements of Financial Position - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash | $ 53,884,809 | $ 82,165,273 |
Investments | 3,596,592 | 7,501,155 |
Prepaid expenses and deposits | 1,519,157 | 1,445,711 |
Sales taxes recoverable | 3,299,646 | 3,144,288 |
Interest receivable | 75,322 | |
Other assets | 76,303 | |
Total current assets | 62,375,526 | 94,332,730 |
Non-current assets | ||
Exploration and evaluation assets | 9,093,187 | 8,936,609 |
Investment in Kirkland Lake Discoveries Corp. | 2,861,250 | |
Property and equipment | 7,638,608 | 7,267,014 |
Secured notes | 2,454,300 | |
Right-of-use assets | 156,622 | 151,159 |
Total non-current assets | 22,203,967 | 16,354,782 |
Total Assets | 84,579,493 | 110,687,512 |
Current liabilities | ||
Accounts payable and accrued liabilities | 6,492,354 | 7,000,035 |
Flow-through share premium | 12,426,322 | 20,063,350 |
Lease liabilities | 88,958 | 81,388 |
Total current liabilities | 19,007,634 | 27,144,773 |
Lease liabilities | 68,839 | 68,839 |
Total non-current liabilities | 68,839 | 68,839 |
Total liabilities | 19,076,473 | 27,213,612 |
EQUITY | ||
Share capital | 290,244,029 | 229,632,005 |
Reserves | 34,755,069 | 33,447,210 |
Deficit | (259,496,078) | (179,605,315) |
Total equity | 65,503,020 | 83,473,900 |
Total Liabilities and Equity | $ 84,579,493 | $ 110,687,512 |
Statements of Loss and Comprehe
Statements of Loss and Comprehensive Loss - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Expenses | ||
Corporate development and investor relations | $ 1,274,632 | $ 1,151,797 |
Depreciation | 940,208 | 880,396 |
Exploration and evaluation expenditures | 94,038,277 | 71,420,546 |
Office and sundry | 798,198 | 1,213,903 |
Professional fees | 1,652,312 | 1,629,038 |
Salaries and consulting | 2,499,578 | 2,893,203 |
Share-based compensation | 1,410,563 | 8,489,387 |
Transfer agent and regulatory fees | 635,848 | 644,252 |
Travel | 217,954 | 394,371 |
Loss from operating activities | (103,467,570) | (88,716,893) |
Other income (expenses) | ||
Settlement of flow-through share premium | 22,932,528 | 17,165,846 |
Foreign exchange gain (loss) | 101,959 | (43,054) |
Gain on sale of exploration and evaluation assets | 4,217,935 | 12,161 |
Gain on lease derecognition | 2,027 | |
Loss from equity investment | (795,995) | |
Impairment of equity investment | (1,000,237) | |
Loss on disposal of property and equipment | (5,928) | |
Part XII.6 tax | (584,120) | |
Revaluation of secured notes | 33,599 | |
Impairment of exploration and evaluation assets | (8,000) | |
Interest expense | (27,119) | (15,988) |
Interest income | 2,791,248 | 1,220,279 |
Realized losses on disposal of investments | (4,675,084) | |
Unrealized losses on investments | (4,079,063) | (14,938,953) |
Total | 23,576,807 | (1,272,766) |
Loss and comprehensive loss for the year | $ (79,890,763) | $ (89,989,659) |
Loss per share - basic | $ (0.45) | $ (0.54) |
Loss per share - diluted | $ (0.45) | $ (0.54) |
Weighted average number of common shares outstanding - basic | 178,363,103 | 166,858,136 |
Weighted average number of common shares outstanding - diluted | 178,363,103 | 166,858,136 |
Statements of Cash Flows
Statements of Cash Flows - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Loss for the year | $ (79,890,763) | $ (89,989,659) |
Adjustments for: | ||
Depreciation | 940,208 | 880,396 |
Gain on sale of exploration and evaluation assets | (4,123,183) | (12,161) |
Gain on lease derecognition | (2,027) | |
Loss from equity investment | 795,995 | |
Impairment of equity investment | 1,000,237 | |
Loss on disposal of property and equipment | 5,928 | |
Impairment of exploration and evaluation assets | 8,000 | |
Revaluation of secured notes | (33,599) | |
Foreign exchange loss on secured notes | 43,299 | |
Interest expense | 27,119 | 15,988 |
Settlement of flow-through share premium | (22,932,528) | (17,165,846) |
Share-based compensation | 1,410,563 | 8,489,387 |
Realized losses on disposal of investments | 4,675,084 | |
Unrealized losses on investments | 4,079,063 | 14,938,953 |
Total adjustments to reconcile profit (loss) | (98,669,661) | (78,169,885) |
Change in non-cash working capital items: | ||
(Increase) decrease in prepaid expenses and deposits | (97,103) | 757,003 |
(Increase) decrease in other assets | (106,179) | 38,008 |
(Increase) in sales taxes recoverable | (155,358) | (1,337,106) |
(Increase) in interest receivable | (75,322) | |
(Decrease) increase in accounts payable and accrued liabilities | (170,689) | 4,331,483 |
Net cash used in operating activities | (99,274,312) | (74,380,497) |
Cash flows used in investing activities | ||
Expenditures on claims staking and mineral license renewals | (16,565) | (16,294) |
Purchases of exploration and evaluation assets | (208,034) | (200,000) |
Transaction costs on sale of exploration and evaluation assets | (94,752) | |
Proceeds on sale of exploration and evaluation assets | 12,161 | |
Proceeds on disposal of investments | 4,827,266 | |
Proceeds on disposal of property and equipment | 9,084 | |
Purchases of property and equipment | (1,487,150) | (5,361,007) |
Purchase of secured notes | (2,464,000) | |
Purchase of investments | (174,500) | |
Net cash used in investing activities | (4,435,917) | (737,874) |
Cash flows from financing activities | ||
Issuance of common shares in prospectus offering | 78,986,588 | 52,549,677 |
Share issue costs | (3,517,377) | (3,333,880) |
Stock options exercised | 131,630 | 7,649,906 |
Warrants exercised | 55,140 | |
Lease payments | (171,076) | (121,775) |
Net cash generated from financing activities | 75,429,765 | 56,799,068 |
Net decrease in cash | (28,280,464) | (18,319,303) |
Cash at beginning of year | 82,165,273 | 100,484,576 |
Cash at end of year | $ 53,884,809 | $ 82,165,273 |
Statements of Changes in Equity
Statements of Changes in Equity - CAD ($) | Share capital | Reserves - Equity settled share-based payments | Reserves - Warrants | Deficit | Total |
Balance at beginning of period at Dec. 31, 2021 | $ 181,795,493 | $ 30,455,739 | $ 19,025 | $ (89,615,656) | $ 122,654,601 |
Balance at beginning (in shares) at Dec. 31, 2021 | 164,205,700 | ||||
Issued pursuant to acquisition of exploration and evaluation assets | $ 194,834 | 194,834 | |||
Issued pursuant to acquisition of exploration and evaluation assets (in shares) | 39,762 | ||||
Issued in prospectus offering | $ 52,549,677 | 52,549,677 | |||
Issued in prospectus offering (in shares) | 6,750,229 | ||||
Flow-through share premium | $ (14,500,000) | (14,500,000) | |||
Share issue costs | (3,629,986) | (3,629,986) | |||
Share-based compensation | 8,489,387 | 8,489,387 | |||
Stock options exercised | $ 13,151,740 | (5,501,834) | 7,649,906 | ||
Stock options exercised (in shares) | 4,341,875 | ||||
Warrants exercised | $ 70,247 | (15,107) | 55,140 | ||
Warrants exercised (in shares) | 39,960 | ||||
Net loss and comprehensive loss for the period | (89,989,659) | (89,989,659) | |||
Balance at end of period at Dec. 31, 2022 | $ 229,632,005 | 33,443,292 | 3,918 | (179,605,315) | 83,473,900 |
Balance at ending (in shares) at Dec. 31, 2022 | 175,377,526 | ||||
Issued pursuant to acquisition of exploration and evaluation assets | $ 203,979 | 203,979 | |||
Issued pursuant to acquisition of exploration and evaluation assets (in shares) | 39,762 | ||||
Issued in prospectus offering | $ 78,986,588 | 78,986,588 | |||
Issued in prospectus offering (in shares) | 11,277,224 | ||||
Flow-through share premium | $ (15,295,500) | (15,295,500) | |||
Share issue costs | (3,517,377) | (3,517,377) | |||
Share-based compensation | 1,410,563 | 1,410,563 | |||
Stock options exercised | $ 234,334 | (102,704) | 131,630 | ||
Stock options exercised (in shares) | 178,500 | ||||
Net loss and comprehensive loss for the period | (79,890,763) | (79,890,763) | |||
Balance at end of period at Dec. 31, 2023 | $ 290,244,029 | $ 34,751,151 | $ 3,918 | $ (259,496,078) | $ 65,503,020 |
Balance at ending (in shares) at Dec. 31, 2023 | 186,873,012 |
NATURE OF OPERATIONS AND GOING
NATURE OF OPERATIONS AND GOING CONCERN | 12 Months Ended |
Dec. 31, 2023 | |
NATURE OF OPERATIONS AND GOING CONCERN | |
NATURE OF OPERATIONS AND GOING CONCERN | 1. NATURE OF OPERATIONS AND GOING CONCERN New Found Gold Corp. (the “Company”) was incorporated on January 6, 2016, under the Business Corporations Act in the Province of Ontario. On June 23, 2020, the Company continued as a British Columbia corporation under the Business Corporations Act in the Province of British Columbia. The Company’s registered office is located at Suite 3500, The Stack, 1133 Melville Street, Vancouver, British Columbia V6E 4E5. The Company is a mineral exploration company engaged in the acquisition, exploration and evaluation of resource properties with a focus on gold properties located in Newfoundland and Labrador, Canada. The Company’s exploration and evaluation assets presently have no proven or probable reserves, and on the basis of information to date, it has not yet determined whether these properties contain economically recoverable resources. The recoverability of amounts shown for exploration and evaluation assets are dependent upon the existence of economically recoverable reserves or the Company’s ability to recover the value of exploration and evaluation assets through their sale, the ability of the Company to obtain necessary financing to complete the development of those reserves and upon future profitable production. These financial statements have been prepared assuming the Company will continue on a going-concern basis and do not include adjustments to amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue operations. The ability of the Company to continue as a going concern depends upon its ability to develop profitable operations and to continue to raise adequate financing. As at December 31, 2023, the Company had an accumulated deficit of $259,496,078 and shareholders’ equity of $65,503,020. In addition, the Company has a working capital surplus, calculated as current assets less current liabilities, of $43,367,892, consisting primarily of cash, and negative cash flow from operating activities of $99,274,312 for the year ended December 31, 2023. Management is actively targeting sources of additional financing through alliances with financial, exploration and mining entities, or other business and financial transactions which would assure continuation of the Company’s operations and exploration programs. In order for the Company to meet its liabilities as they come due and to continue its operations, the Company is solely dependent upon its ability to generate such financing. These items give rise to material uncertainties that cast significant doubt as to the Company’s ability to continue as a going concern. These financial statements were approved by the Board of Directors of the Company on March 21, 2024. |
MATERIAL ACCOUNTING POLICY INFO
MATERIAL ACCOUNTING POLICY INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
MATERIAL ACCOUNTING POLICY INFORMATION. | |
MATERIAL ACCOUNTING POLICY INFORMATION | 2. MATERIAL ACCOUNTING POLICY INFORMATION The principal accounting policies applied in the preparation of these financial statements are set out below. a) Statement of compliance The Company’s financial statements, including comparatives, have been prepared in accordance with and using accounting policies in compliance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”), effective for the Company’s reporting for the years ended December 31, 2023 and 2022. b) Basis of presentation These financial statements have been prepared on a historical cost basis except for financial instruments classified as subsequently measured at fair value. In addition, these financial statements have been prepared using the accrual basis of accounting, except for cash flow information. c) Exploration, evaluation and development expenditures Costs incurred before the Company has obtained the legal right to explore are expensed as incurred. Once the legal right to explore has been acquired, the Company capitalizes the costs of acquiring rights or licenses, including those purchased from other parties or staked directly by the Company, until such time as the lease expires, it is abandoned, sold or considered impaired in value. Indirect administrative costs and costs of surveying, exploratory drilling, sampling, materials, fuel, equipment rentals or payments to contractors are expensed as incurred. Once the technical feasibility and commercial viability of extracting a mineral resource are demonstrable and economically recoverable reserves are developed, any direct exploration costs of the related property are capitalized as development costs. Exploration and evaluation properties are not amortized during the exploration and evaluation stage. The Company does not have revenue from mining operations. The Company recognizes gains or losses on the sale of exploration and evaluation assets in accordance with the terms of the purchase and sale agreements. Gains or losses are recognized when a mining option is executed and the cost is derecognized in accordance with the percentage interest sold. At each reporting date the carrying amounts of the Company’s exploration and evaluation assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash generating units (“CGU”) to which the exploration activity relates. Each of the Company’s properties is considered to be a separate CGU. Where an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) d) Decommissioning liabilities The Company recognizes liabilities for statutory, contractual, constructive or legal obligations associated with the retirement of exploration and evaluation assets and equipment when those obligations result from the acquisition, construction, development or normal operation of assets. The net present value of future reclamation costs is expensed as part of exploration and evaluation expenditures up until the point it is concluded that the technical feasibility and commercial viability of extracting a mineral resource from a particular project are demonstrable and economically recoverable reserves are developed, after which any such costs are capitalized as development costs with a corresponding increase in the reclamation provision in the period incurred. Pre-tax discount rates that reflect the time value of money are used to calculate the net present value. The Company’s estimates of reclamation costs could change as a result of changes in regulatory requirements, discount rates and assumptions regarding the amount and timing of the future expenditures. These changes are recorded directly to exploration and evaluation expenditures or exploration and evaluation assets and the reclamation provision. The Company’s estimates are reviewed annually for changes in regulatory requirements, discount rates, effects of inflation and changes in estimates. Changes in the net present value, excluding changes in the Company’s estimates of reclamation costs, are charged to profit or loss for the period. e) Property, plant and equipment Property, plant and equipment is recorded at cost less accumulated depreciation calculated using the straight-line method over the estimated useful lives as follows: Property and Buildings 10-25 years Geological Equipment and Other Facilities 2-20 years Computer Equipment 2-5 years Office Furniture and Equipment 5 years Vehicles 3 years Depreciation of an asset begins once it is available for use. Long-lived assets are comprised of property and equipment. At the end of each reporting period the carrying amounts of the Company’s long-lived assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained by the sale of the asset in any arm’s length transaction between knowledgeable and willing parties. Fair value of mineral assets is generally determined as the present value of the estimated cash flows expected to arise from the continued use of the asset, including an expansion project. Value in use is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and from its ultimate disposal. Impairment is assessed at the CGU level, which is identified as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets. Non-financial assets that have been impaired are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed. When a reversal of a previous impairment is recorded, the reversal amount is adjusted for depreciation that would have been recorded had the impairment not taken place. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) f) Share-based payment transactions 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 the goods or services received or 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 amount recognized as an expense is adjusted to reflect the number of awards expected to vest. The offset to the recorded cost is to equity settled share-based payments reserve. Consideration received on the exercise of stock options is recorded as share capital and the related equity settled share-based payments reserve is transferred to share capital. Charges for options that are forfeited/cancelled before vesting are transferred from equity settled share-based payment reserve to deficit. Charges for options that are expired remain in equity settled share-based payment reserve. Where the terms and conditions of options are modified before they vest, the changes in fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. g) Valuation of equity units issued in private placements The Company follows the pro-rata allocation method with respect to the measurement of shares and warrants issued as private placement units. This values each component at fair value and allocates total proceeds received between shares and warrants based on the pro rata relative values of the components. The fair value of the common shares is based on the closing quoted bid price on the issue date and the fair value of the common share purchase warrants is determined at the issue date using the Black- Scholes pricing model. In the event of a modification in warrants issued as private placement units, no re-measurement adjustment is recognized within equity. h) Financial instruments Financial assets and liabilities are recognized when the entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the rights to receive cash flows have expired or substantially all risks and rewards of ownership have been transferred. Gains and losses on derecognition are generally recognized in profit and loss. Financial liabilities are derecognized when the Company’s obligation has been discharged, cancelled or expired. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) h) Financial instruments (continued) Financial assets are classified and measured either at amortized cost, fair value through other comprehensive income (“FVOCI”) or fair value through profit or loss (“FVTPL”) based on the business model in which they are held and the characteristics of their contractual cash flows. 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 are measured at amortized cost at the end of the subsequent accounting periods. All other financial assets including equity investments and secured notes are measured at their fair values at the end of subsequent accounting periods, with any change taken through profit or loss or other comprehensive income. Financial liabilities include accounts payable and lease liabilities, which are measured at amortized cost. All financial instruments are initially recognized at fair value on the statement of financial position. Subsequent measurement of financial instruments is based on their classification. Financial assets and liabilities classified at FVTPL are measured at fair value with changes in those fair values recognized in profit or loss or other comprehensive income for the period. Financial assets and liabilities classified at amortized cost are measured at amortized cost using the effective interest method. The following table sets out the classifications of the Company’s financial assets and liabilities: Financial assets/liabilities Classification under IFRS 9 Cash Amortized cost Investments FVTPL Deposits Amortized cost Secured notes FVTPL Accounts payables and accrued liabilities Amortized cost Lease liabilities Amortized cost IFRS requires an expected credit loss model for calculating the impairment of financial assets. The expected credit loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in initial recognition. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods, if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods, if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. i) Investments Purchases and sales of investments are recognized on the settlement date. Realized gains and losses on disposal of investments and unrealized gains and losses in the fair value of investments are reflected in the statement of loss and comprehensive loss. Upon disposal of an investment, previously recognized unrealized gains or losses are reversed so as to recognize the full realized gain or loss in the period of disposition. All transaction costs associated with the acquisition and disposition of investments are expensed to the statement of loss and comprehensive loss as incurred. Interest income and other income are recorded on an accrual basis. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) i) Investments (continued) The fair value of investments is determined as follows: (a) Securities that are traded in an active market and for which no sales restrictions apply, are presented at fair value based on quoted closing trade prices at the date of statement of financial position. If there were no trades on the date of the statement of financial position, these securities are presented at the closing price on the last date the security traded. These investments are included in Level 1 of the fair value hierarchy. (b) Securities that are traded in an active market, but which are escrowed or otherwise restricted as to their sale or transfer, are recorded at amounts discounted from market value to a maximum of 10% . In determining the discount for such investments, the Company considers the nature and length of the restriction. These investments are included in Level 2 of the fair value hierarchy. (c) Securities that are not traded in an active market or are valued based on unobservable market inputs are included in the Level 3 of the fair value hierarchy. See Note 5 for details of investments held by the Company as at December 31, 2023 and 2022. j) Investment in an associate k) Flow-through shares The Company will from time to time issue flow-through common shares to finance a significant portion of its exploration program. Pursuant to the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company bifurcates the flow-through share into i) a flow-through share premium, equal to the estimated premium, if any, investors pay for the flow-through feature, which is recognized as a liability, and ii) share capital. Upon expenditures being incurred, the Company derecognizes the liability and recognizes a deferred tax liability for the amount of tax reduction renounced to the shareholders. The premium is recognized as recovery of flow-through premium liability and the related deferred tax is recognized as a tax provision. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) k) Flow-through shares (continued) The Company is subject to the flow-through share rules under the Income Tax Act of Canada. Proceeds received from the issuance of flow-through shares are required to be used only for Canadian resource property exploration expenditures within a specified time. The Company may also be subject to Part XII.6 tax on flow through proceeds renounced but not spent under the Look-Back Rules. When applicable, this tax is accrued as an expense. l) Income taxes Income tax on the profit or loss for the years presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years. Deferred tax is provided using the statement of financial position liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at year end applicable to the period of expected realization or settlement. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. m) Significant accounting estimates The preparation of these financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. These financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates may be pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant assumptions about the future and other sources of estimation uncertainty that management has made at year end that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to the following: 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) m) Significant accounting estimates and judgments (i) Critical accounting estimates Valuation of Secured Notes The fair value of secured notes at the issue date and the period end date is determined using the Hull-White model of interest rate uncertainty within a FINCAD Callable / Puttable Bond Model. The model involves various inputs to determine the fair value of the secured notes, including coupon rate, credit spread, mean reversion, rate volatility, riskless rates and redemption prices. Certain of the inputs are estimates that involve considerable judgment and are, or could be, affected by significant factors that are out of the Company’s control. These estimates impact the value of the secured notes recognized in the statement of financial position and revaluation adjustments recognized in the statement of loss and comprehensive loss during the period. Valuation of Options Granted and Warrants Issued The fair value of common share purchase options granted and warrants issued is determined at the issue date using the Black-Scholes option pricing model. The Black-Scholes model involves six key inputs to determine the fair value of an option, which are: risk-free interest rate, exercise price, market price at the grant date, expected dividend yield, expected life, and expected volatility. Certain of the inputs are estimates that involve considerable judgment and are, or could be, affected by significant factors that are out of the Company’s control. The Company is also required to estimate the future forfeiture rate of options based on historical information in its calculation of share-based payments expense. These estimates impact the values of stock-based compensation expense, share capital, and reserves. Fair Value of Financial Derivatives Investments in warrants that are not traded on a recognized securities exchange do not have a readily available market value. When there are sufficient and reliable market inputs, a Black-Scholes option pricing model is used. The Black-Scholes model involves six key inputs to determine the fair value of a warrant, which include: risk-free interest rate, exercise price, market price at the grant date, expected dividend yield, expected life, and expected volatility. Certain of the inputs are estimates that involve considerable judgment and are or could be affected by significant factors that are out of the Company’s control. The absence of the occurrence of any of these events, any significant change in trends in general market conditions, or any significant change in share performance of comparable publicly-traded companies indicates generally that the fair value of the investment has not materially changed. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) m) Significant accounting estimates and judgments (continued) (i) Critical accounting estimates (continued Computation of Income Taxes The determination of tax expense for the period and deferred tax assets and liabilities involves significant estimation and judgment by management. In determining these amounts, management interprets tax legislation in a variety of jurisdictions and make estimates of the expected timing of the reversal of deferred tax assets and liabilities. Management also makes estimates of future earnings which affect the extent to which potential future tax benefits may be used. The Company is subject to assessments by taxation authorities, which may interpret legislation differently. These differences may affect the final amount or the timing of the payment of taxes. We provide for such differences where known based on our best estimate of the probable outcome of these matters. Shares Issued to Acquire Exploration and Evaluation Assets From time to time, the Company issues common shares in the course of acquiring exploration and evaluation assets. When shares are issued without cash consideration, the transaction is recognized at the fair value of the assets received. In the event that the fair value of the assets cannot be reliably determined, the Company will recognize the transaction at the fair value of the shares issued. These estimates impact the value of share capital and exploration and evaluation assets. Valuation of flow-through premium The determination of the valuation of flow-through premium is subject to significant judgment and estimates. The flow-through premium is valued as the estimated premium that investors pay for the flow-through feature, being the portion in excess of the market value of shares without the flow-through feature. Reclamation provision The valuation of any reclamation provision is subject to significant judgement and estimates. Assumptions, based on the current economic environment, are made to estimate the future liability recognized in Note 10. These estimates take into account any material changes to the assumptions that occur when reviewed regularly by management and are based on current regulatory requirements. Significant changes in estimates of discount rate, contamination, restoration standards and techniques will result in changes to the provision from period to period. Actual reclamation and closure costs will ultimately depend on future market prices for the costs which will reflect the market condition at the time the expenditures are actually incurred. The final cost of the reclamation provision currently recognized may be higher or lower than currently provided for. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) m) Significant accounting estimates (continued) (ii) Critical accounting judgments Impairment of Exploration and Evaluation Assets Management is required to assess impairment in respect to the Company’s mineral property interests. The triggering events are defined in IFRS 6. In making the assessment, management is required to make judgments on the status of each project and the future plans towards finding commercial reserves. The carrying value of each exploration and evaluation asset is reviewed regularly for conditions that may suggest impairment.This review requires significant judgment. Factors considered in the assessment of asset impairment include, but are not limited to, whether there has been a significant adverse change in the legal, regulatory, accessibility, title, environmental or political factors that could affect the property’s value; whether there has been an accumulation of costs significantly in excess of the amounts originally expected for the property’s acquisition, development or cost of holding; and whether exploration activities produced results that are not promising such that no more work is being planned in the foreseeable future. If impairment is determined to exist, a formal estimate of the recoverable amount is performed and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount. Management has determined that there were indicators of impairment as at June 30, 2023 and has impaired $8,000 (December 31, 2022 - $Nil) in exploration and evaluation assets. There were no indicators of impairment at December 31, 2023 or 2022. Refer to Note 3(ii) for further information. Determination of whether the Company has significant influence over investees Significant influence is presumed to exist where the Company has between 20% and 50% of the voting rights, but can also arise where the Company has less than 20%, if the Company has the power to participate in the financial and operating policy decisions affecting the entity. Determination of whether the Company has significant influence over investees requires an assessment of the activities of the investee that significantly affect the investee's returns, including strategic, operational and financing decision-making, appointment, remuneration and termination of the key management personnel and when decisions related to those activities can be influenced by the Company. Based on assessments of the relevant facts and circumstances, primarily, the Company's ownership interests, board representation and ability to influence operating, strategic and financing decisions, the Company concluded that it has significant influence over Kirkland Lake Discoveries Corp. described in Note 7. Impairment assessment for investment in associates At each balance sheet date, management considers whether there is objective evidence of impairment in associates, including one or more loss events that would evidence a significant or prolonged decline in the fair value of the investment in associates below the carrying value. The net investment in an associate is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the net investment and that loss event or events have a negative impact on the estimated future cash flows from the net investment that can be reliably estimated. If there is such evidence, management determines the amount of impairment to record, if any, in relation to the associate. The Company had significant influence over Kirkland Lake Discoveries Corp. during the period from May 25, 2023 to December 31, 2023 and as a result has accounted for it as an investment in an associate during this period. Management has determined that there were indicators of impairment as at December 31, 2023 and has impaired $1,000,237 in its investment in Kirkland Lake Discoveries Corp. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) m) Significant accounting estimates (continued) (ii) Critical accounting judgments Presentation of financial statements as a going concern Presentation of the financial statements as a going concern which assumes that the Company will continue in operation for the foreseeable future, obtain additional financing as required, and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due involves significant judgment by management. n) Initial application of standards, interpretations and amendments to standards and interpretations in the reporting period The IASB issued certain new accounting standards or amendments that are mandatory for accounting periods on or after January 1, 2023. The effect of such new accounting standards or amendments did not have a material impact on the Company and therefore the Company did not record any adjustments to the financial statements. As part of the new amendments, the Company adopted Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) from January 1, 2023. Although the amendments did not result in any changes to the accounting policies themselves, they impacted the accounting policy information disclosed in the financial statements. The amendments require the disclosure of ‘material’, rather than ‘significant’, accounting policies. The amendments also provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity-specific accounting policy information that users need to understand other information in the financial statements. Management reviewed the accounting policies and made updates to the information disclosed in Note 2 Material accounting policies (2022: Significant accounting policies) in certain instances in line with the amendments. o) Certain new accounting standards or interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards and interpretations are not expected to have a material impact on the Company’s financial statements. |
EXPLORATION AND EVALUATION ASSE
EXPLORATION AND EVALUATION ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
EXPLORATION AND EVALUATION ASSETS | |
EXPLORATION AND EVALUATION ASSETS | 3. EXPLORATION The schedules below summarize the carrying costs of acquisition costs and exploration expenditures incurred to date for each exploration and evaluation asset that the Company is continuing to explore as at December 31, 2023 and 2022: Newfoundland Queensway (i) Other Ontario (ii) Total Year ended December 31, 2023 $ $ $ $ Exploration and evaluation assets Balance as at December 31, 2022 8,616,693 47,916 272,000 8,936,609 Additions Acquisition costs 381,220 30,793 — 412,013 Claim staking and license renewal costs 16,565 — — 16,565 Disposals Disposal of exploration and evaluation assets — — (264,000) (264,000) Impairment of exploration and evaluation assets — — (8,000) (8,000) Balance as at December 31, 2023 9,014,478 78,709 — 9,093,187 Exploration and evaluation expenditures Cumulative exploration expense – December 31, 2022 121,302,318 539,998 3,428,034 125,270,350 Assays 16,102,874 14,515 — 16,117,389 Drilling 41,121,168 — — 41,121,168 Environmental studies 1,280,147 — — 1,280,147 Geochemistry 857,555 — — 857,555 Geophysics 814,877 — — 814,877 Imagery and mapping 644,205 9,932 — 654,137 Metallurgy 950,855 — — 950,855 Office and general 855,902 — 144 856,046 Other 590,575 — — 590,575 Permitting 225,162 — — 225,162 Property taxes, mining leases and rent 143,010 — 5,915 148,925 Reclamation 2,122,598 — — 2,122,598 Salaries and consulting 13,243,577 10,103 13,850 13,267,530 Seismic survey 8,118,668 — — 8,118,668 Supplies and equipment 4,438,579 — 480 4,439,059 Technical reports 55,025 — — 55,025 Travel and accommodations 1,481,399 309 155 1,481,863 Trenching 982,148 — — 982,148 Exploration cost recovery (45,450) — — (45,450) 93,982,874 34,859 20,544 94,038,277 Cumulative exploration expense – December 31, 2023 215,285,192 574,857 3,448,578 219,308,627 3. EXPLORATION AND EVALUATION ASSETS Newfoundland Queensway (i) Other Ontario (ii) Total Year ended December 31, 2022 $ $ $ Exploration and evaluation assets Balance as at December 31, 2021 8,236,181 17,700 271,600 8,525,481 Additions Acquisition costs 364,738 30,096 — 394,834 Claim staking and license renewal costs 15,774 120 400 16,294 Balance as at December 31, 2022 8,616,693 47,916 272,000 8,936,609 Exploration and evaluation expenditures Cumulative exploration expense – December 31, 2021 51,439,957 59,646 2,350,201 53,849,804 Assays 9,741,609 12,545 233,314 9,987,468 Drilling 36,118,624 352,056 449,063 36,919,743 Environmental studies 537,234 — — 537,234 Geochemistry 48,116 — — 48,116 Geophysics 1,894,010 — 177,916 2,071,926 Imagery and mapping 95,893 — — 95,893 Metallurgy 65,644 — — 65,644 Office and general 672,019 50 4,811 676,880 Property taxes, mining leases and rent 103,750 — 3,205 106,955 Petrography 9,372 — — 9,372 Reclamation 2,464,985 — — 2,464,985 Salaries and consulting 11,166,116 43,866 155,729 11,365,711 Supplies and equipment 5,204,988 71,187 35,182 5,311,357 Technical reports 458,439 — 9,567 468,006 Travel and accommodations 1,341,562 648 9,046 1,351,256 Exploration cost recovery (60,000) — — (60,000) 69,862,361 480,352 1,077,833 71,420,546 Cumulative exploration expense – December 31, 2022 121,302,318 539,998 3,428,034 125,270,350 (i) Queensway Project – Gander, Newfoundland As at December 31, 2023, the Company owns a 100% interest in 96 (December 31, 2022 – 94) mineral licenses including 6,659 (December 31, 2022 – 6,649) claims comprising 166,475 (December 31, 2022 – 166,225) hectares of land located in Gander, Newfoundland. The project rights were acquired by map staking mineral licenses and making staged payments in cash and common shares of the Company from 2016 through 2022 under ten separate option agreements, of which nine are completed. The Queensway Project carries various net smelter return (“NSR”) royalties ranging from 0.4% to 2.5% and include buy-back provisions that allows the Company, at its option, to reduce the NSR by making lump-sum payments ranging from $250,000 to $1,000,000 to the holders of the royalties.The total cost of the NSR’s if the Company were to exercise all of its buy-back rights is $5,250,000 resulting in NSR’s ranging from 0.4% to 1.5% for the mineral licenses subsect to an NSR royalty. 3. EXPLORATION AND EVALUATION ASSETS (continued) (i) Queensway Project – Gander, Newfoundland On November 2, 2022, the Company entered into a definitive property option agreement to acquire a 100% interest in five mineral licenses located in Gander, Newfoundland. Under the terms of this agreement, the Company may exercise the option by issuing an aggregate of 487,078 common shares in the capital of the Company and making aggregate cash payments of $2,350,000 to the optionors as follows: ● $200,000 (paid) and 39,762 common shares (issued) on the later of (i) staking confirmation date as defined in the Option Agreement and (ii) the receipt of the TSX-Venture Exchange’s approval; ● $200,000 (paid) and 39,762 common shares on or before November 2, 2023 (issued); ● $250,000 and 69,583 common shares on or before November 2, 2024; ● $300,000 and 89,463 common shares on or before November 2, 2025; ● $600,000 and 129,224 common shares on or before November 2, 2026; and ● $800,000 and 119,284 common shares on or before November 2, 2027. (ii) Ontario Projects Disposal of Lucky Strike During the year ended December 31, 2023, the Company recognized a gain on disposal of its Lucky Strike project in Kirkland Lake, Ontario of $4,217,935. The Company received total non-cash consideration having a fair value of $4,657,482 consisting of 28,612,500 common shares of Kirkland Lake Discoveries Corp. and a 1.0% net smelter return royalty on future production from the mineral claims. The Company recognized $175,547 of professional fees in connection with the transaction and derecognized the Lucky Strike project at its carrying value of $264,000. Refer to Note 7 for further information. As at December 31, 2022, the Company owned a 100% interest in the Lucky Strike project in Kirkland Lake, Ontario comprising 11,684 hectares, as well as a portfolio of mining and royalty interests throughout northeastern Ontario. The project rights were acquired by map staking mineral licenses and making staged payments in cash and common shares of the Company from 2016 through 2019 under a fully executed option agreement. The optioned lands carried an NSR ranging from 1% to 2%. Impairment of Ontario Properties During the year ended December 31, 2023, the Company recorded an impairment of $8,000 (December 31, 2023 - $Nil) in acquisition costs related to projects no longer being explored. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 4. PROPERTY AND EQUIPMENT Geological Office Property Equipment Furniture and Computer and Other and Buildings Equipment Facilities Vehicles Equipment Total $ $ $ $ $ $ Cost Balance at January 1, 2022 2,127,485 32,392 823,122 531,240 — 3,514,239 Additions 4,065,427 61,106 724,332 248,648 30,148 5,129,661 Balance at December 31, 2022 6,192,912 93,498 1,547,454 779,888 30,148 8,643,900 Additions 172,344 46,395 763,576 190,230 8,205 1,180,750 Disposals — (3,401) — (34,795) — (38,196) Balance at December 31, 2023 6,365,256 136,492 2,311,030 935,323 38,353 9,786,454 Accumulated Depreciation Balance at January 1, 2022 53,654 17,107 333,474 195,545 — 599,780 Depreciation 87,872 26,682 454,124 208,016 412 777,106 Balance at December 31, 2022 141,526 43,789 787,598 403,561 412 1,376,886 Depreciation 271,505 42,327 228,621 244,312 7,379 794,144 Disposals — (567) — (22,617) — (23,184) Balance at December 31, 2023 413,031 85,549 1,016,219 625,256 7,791 2,147,846 Carrying Amount At December 31, 2022 6,051,386 49,709 759,856 376,327 29,736 7,267,014 At December 31, 2023 5,952,225 50,943 1,294,811 310,067 30,562 7,638,608 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENTS | |
INVESTMENTS | 5. INVESTMENTS The Company classifies its investments at FVTPL. Realized gains and losses on disposal of investments and unrealized gains and losses in the fair value of investments are reflected in the statement of loss and comprehensive loss in the period in which they occur. Investments consisted of the following as at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 $ $ Equities held (i) 3,408,092 7,474,287 Warrants held (ii) 188,500 26,868 Total Investments 3,596,592 7,501,155 5. INVESTMENTS (continued) (i) Equities held The Company held the following equities as at December 31, 2023: Fair Value December 31, Cost 2023 Quantity $ $ Exploits Discovery Corp. 13,229,466 8,462,704 1,587,536 Labrador Gold Corp. 12,555,556 8,850,000 1,820,556 Long Range Exploration Corporation 5,000,000 500,000 — Total Equities 17,812,704 3,408,092 The Company held the following equities as at December 31, 2022: Fair Value December 31, Cost 2022 Quantity $ $ Exploits Discovery Corp. 13,229,466 8,462,704 3,770,398 Labrador Gold Corp. 12,555,556 8,850,000 3,703,889 Long Range Exploration Corporation 5,000,000 500,000 — Total Equities 17,812,704 7,474,287 Investments in Exploits Discovery Corp. and Labrador Gold Corp. represent investments in public companies that are quoted on an active exchange and are measured using the quoted market price of these companies. Long Range Exploration Corporation is a private company without observable market prices for its common shares and is measured at its estimated fair value based on valuation techniques that use inputs derived by management and is considered Level 3 in the fair value hierarchy (Note 18). (ii) Warrants held The Company held the following warrants as at December 31, 2023: Fair Value December 31, Cost 2023 Quantity $ $ Maritime Resources Corp. (1) 15,324,571 174,500 188,500 Total Warrants 174,500 188,500 (1) Each warrant is exercisable into one common share of Maritime Resources Corp. at a price of $0.07 per warrant until August 14, 2025, subject to extension to August 14, 2026 in the event that the Initial Maturity Date of the notes is extended to the Extended Maturity Date as defined in Note 8. 5. INVESTMENTS (continued) (ii) Warrants held (continued) The Company held the following warrants as at December 31, 2022: Fair Value December 31, Cost 2022 Quantity $ $ Exploits Discovery Corp. 6,666,667 — 10,331 Labrador Gold Corp. 6,277,778 — 16,537 Total Warrants — 26,868 Warrants that do not have a quoted market price are valued using a Black-Scholes option pricing model using assumptions including risk free interest rate, expected dividend yield, expected volatility, and expected remaining life of the warrant, which are supported by observable market conditions. An analysis of investments including related gains and losses for the years ended December 31, 2023 and 2022 is as follows: Year ended December 31, 2023 2022 $ $ Investments, beginning of year 7,501,155 31,942,458 Purchases of investments 174,500 — Proceeds on disposal of investments — (4,827,266) Realized losses on investments — (4,675,084) Unrealized losses on investments (4,079,063) (14,938,953) Investments, end of year 3,596,592 7,501,155 |
PREPAID EXPENSES AND DEPOSITS
PREPAID EXPENSES AND DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
PREPAID EXPENSES AND DEPOSITS | |
PREPAID EXPENSES AND DEPOSITS | 6. PREPAID EXPENSES AND DEPOSITS December 31, December 31, 2023 2022 $ $ Prepaid expenses 1,296,217 1,218,184 Mineral license deposits 222,940 227,527 Prepaid expenses and deposits, end of year 1,519,157 1,445,711 |
INVESTMENT IN KIRKLAND LAKE DIS
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP | |
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP | 7. INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP. On May 25, 2023, the Company disposed of its Lucky Strike project to Kirkland Lake Discoveries Corp. (TSXV: KLDC) for total non-cash consideration comprised of 28,612,500 common shares of KLDC and a 1.0% net smelter return royalty on future production from the mineral claims. The investment represents 32.29% of the issued and outstanding common shares of Kirkland Lake Discoveries Corp. at the time of closing and as at December 31, 2023. The companies have a director and officer in common, being Denis Laviolette, Director and President, who was appointed to the board of KLDC at the time of closing. The Company also exercised its right to nominate two additional directors to the board of directors of Kirkland Lake Discoveries Corp. Based on assessments of the relevant facts and circumstances, primarily, the Company's ownership interests, board representation and ability to influence operating, strategic and financing decisions, the Company concluded that it has significant influence over Kirkland Lake Discoveries Corp. for the period from May 25, 2023 to December 31, 2023 and has accounted for its investment in Kirkland Lake Discoveries Corp. as an investment in an associate. The following table illustrates the summarised financial information of the Company’s investment in Kirkland Lake Discoveries Corp. as at December 31, 2023 on a 100% basis and reflecting adjustments made by the Company, including fair value adjustments made at the time of acquisition and adjustments for differences due to accounting policies: December 31, 2023 $ Summarised Statement of Financial Position Current assets 4,601,136 Non-current assets 4,583,769 Current liabilities (322,453) Non-current liabilities — Net Assets 8,862,452 The Company’s ownership interest 32.29 % Share of Kirkland Lake Discoveries Corp.’s net assets 2,861,250 Summarised Statement of Loss and Comprehensive Loss Net loss and comprehensive loss for the period (2,465,518) Share of Kirkland Lake Discoveries Corp.’s loss for the period from May 25, 2023 to December 31, 2023 (795,995) The Company performs an impairment indicator assessment on its investment in Kirkland Lake Discoveries Corp. at each period end. The assessment is based on the review of recent share price history, industry statistics and assessment of the current market conditions. As at December 31, 2023, management has determined that there are indicators of impairment of the Company’s investment in Kirkland Lake Discoveries Corp. and has recognized an impairment of its equity investment of $1,000,237 for the year ended December 31, 2023. The following table illustrates the movement in investment in associate for the period from May 25, 2023 to December 31, 2023: Net Carrying amount – May 25, 2023 $ 4,657,482 Share of loss from operations of associate during the period (795,995) Impairment of equity investment (1,000,237) Net Carrying amount – December 31, 2023 $ 2,861,250 The estimated fair value of the Company’s investment in Kirkland Lake Discoveries Corp.’s is $2,861,250 as at December 31, 2023 based on the quoted market price of its common shares on the TSX Venture exchange. |
SECURED NOTES
SECURED NOTES | 12 Months Ended |
Dec. 31, 2023 | |
SECURED NOTES | |
SECURED NOTES | 8. SECURED NOTES On August 14, 2023, the Company participated in a brokered note offering completed by Maritime Resources Corp. (“Maritime”) consisting of the issuance of non‐convertible senior secured notes (the “Notes”) and common share purchase warrants. The Notes mature on August 14, 2025 (the “Initial Maturity Date”). The Company subscribed for 2,000 notes with a face value of US$1,000 each. The Notes were issued at a 2.0% original issue discount on the principal amount of the Notes for a gross investment of US$1,960,000 (CAD$2,638,500). The Notes bear interest at a rate equal to the Secured Overnight Financing Rate (“SOFR”) plus 6% per annum, payable quarterly in arrears. The Initial Maturity Date of the Notes can be extended to August 14, 2026 (the “Extended Maturity Date”) at the election of Maritime subject to the approval of holders of at least 65% of the principal amount of the Notes then outstanding. In the event of such an extension, Maritime will pay an extension fee to note holders equal to 3% of the aggregate principal amount of the Notes then outstanding (the “Extension Fee”) and the interest rate on the Notes will increase to SOFR plus 9% until the Extended Maturity Date. Maritime may elect to pay the Extension Fee by issuing Maritime’s common shares at the market price on the trading day prior to the maturity date, subject to the approval of the TSX Venture exchange. Pursuant to certain conditions set out in the Note indenture, including the approval of Noteholders holding at least 65% of the principal amount of the Notes then outstanding, Maritime has the option to satisfy interest payments under the Notes by issuing shares (“Interest Shares”) having a deemed value equal to 90% of the market price as of the date of a news release announcing Maritime’s intention to issue the Interest Shares, subject to the approval of the exchange. The indebtedness under the Notes may be redeemed in whole or in part at the option of Maritime for cash consideration equal to 113% of the aggregate amount of indebtedness if the Notes are redeemed on or prior to August 14, 2024, or 100% of the aggregate amount of indebtedness if redeemed after the date that is 12 months after the issuance date. The Notes are secured by a general security interest over Maritime and rank senior to all existing and future indebtedness of Maritime. Based on the business model in which the secured notes are held and the characteristics of their contractual cash flows, the secured notes are classified as a financial instrument at fair value through profit and loss ("FVTPL") in accordance with IFRS 9 “Financial Instruments”. The issuance of the Notes included a 40% warrant coverage resulting in the Company receiving 15,324,571 warrants (“Warrants”). These warrants were classified by the Company as investments at FVTPL (Note 5). The Company has allocated the gross investment of US$1,960,000 (CAD$2,638,500) to the Notes and warrants based on their respective fair values at initial recognition using valuation techniques applied by the Company as described in Note 2(m)(i). At the time of issuance, the fair value of the Notes was CAD$2,464,000 (US$1,830,300) and the fair value of the warrants was CAD$174,500 (US$129,700). 8. SECURED NOTES (continued) The following table illustrates the movement in the Company’s secured notes for the period from August 14, 2023 to December 31, 2023: Period ended December 31, 2023 $ Secured notes, beginning of year — Purchase of secured notes 2,464,000 Revaluation of secured notes 33,599 Foreign exchange loss (43,299) Secured notes, end of year 2,454,300 During the period ended December 31, 2023, the Company recognized $114,434 of interest income on the secured notes, of which $75,322 was included in interest receivable at December 31, 2023 and collected subsequent to December 31, 2023. |
FLOW-THROUGH SHARE PREMIUM
FLOW-THROUGH SHARE PREMIUM | 12 Months Ended |
Dec. 31, 2023 | |
FLOW-THROUGH SHARE PREMIUM | |
FLOW-THROUGH SHARE PREMIUM | 9. FLOW-THROUGH SHARE PREMIUM Issued Issued Issued Issued August 24, November 25, December 14, November 6, 2021 2021 2022 2023 Total $ $ $ $ $ Balance at December 31, 2021 10,129,196 12,600,000 — — 22,729,196 Liability incurred on flow-through shares issued — — 14,500,000 — 14,500,000 Settlement of flow-through share premium on expenditures incurred (10,129,196) (7,036,650) — — (17,165,846) Balance at December 31, 2022 — 5,563,350 14,500,000 — 20,063,350 Liability incurred on flow-through shares issued — — — 15,295,500 15,295,500 Settlement of flow-through share premium on expenditures incurred — (5,563,350) (14,500,000) (2,869,178) (22,932,528) Balance at December 31, 2023 — — — 12,426,322 12,426,322 Flow-through share arrangements entitle the holder of the flow-through share to a 100% tax deduction in respect of qualifying Canadian exploration expenses as defined in the Income Tax Act, Canada (“Qualifying CEE”). During the year ended December 31, 2023, the Company incurred $81,699,542 (2022 – $66,727,234) in Qualifying CEE and amortized a total of $22,932,528 (2022 - $17,165,846) of its flow-through liabilities. The flow-through premium liability does not represent a cash liability to the Company and is to be fully amortized to the statement of loss and comprehensive loss pro-rata with the amount of qualifying expenditures that will be incurred. During the year ended December 31, 2023, the Company incurred $584,120 (2022 - $Nil) in Part XII.6 tax in respect of unspent flow-through proceeds renounced in year 1 under the Look-Back Rule, in accordance with the Income Tax Act of Canada. As at December 31, 2023, the Company must spend another $45,500,423 of Qualifying CEE by December 31, 2024 to satisfy its remaining current flow-through liability of $12,426,322. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES December 31, 2023 December 31, 2022 $ $ Accounts payable and accrued liabilities 5,207,323 5,588,742 Reclamation provision (1) 1,285,031 1,411,293 Accounts payable and accrued liabilities, end of year 6,492,354 7,000,035 (1) Provincial laws and regulations concerning environmental protection affect the Company’s exploration and operations. Under current regulations, the Company is required to meet performance standards to minimize the environmental impact from its activities and to perform site restoration and other reclamation activities. The Company’s reclamation provision is based on known requirements. The breakdown of the Company’s reclamation provision is as follows: December 31, 2023 December 31, 2022 $ $ Balance, beginning of year 1,411,293 — Additions to reclamation provision 1,327,278 1,411,293 Change in estimate 2,687 — Reclamation costs incurred (1,456,227) — Balance, end of year 1,285,031 1,411,293 The Company has estimated that the reclamation obligations are current costs and as such considers the present value of the provision at December 31, 2023 to be equal to the total future undiscounted cash flows to settle the provision for reclamation, being $1,285,031 (December 31, 2022 - $1,411,293). Additions to the reclamation provision are included in the total amount of exploration and evaluation expenditures in the statement of loss and comprehensive loss. |
SHARE CAPITAL AND RESERVES
SHARE CAPITAL AND RESERVES | 12 Months Ended |
Dec. 31, 2023 | |
SHARE CAPITAL AND RESERVES | |
SHARE CAPITAL AND RESERVES | 11. SHARE CAPITAL AND RESERVES Authorized Share Capital At December 31, 2023, the authorized share capital comprised an unlimited number of common shares. The common shares do not have a par value. All issued shares are fully paid. Details of Common Shares Issued in 2023 Year ended Year ended December 31, 2023 December 31, 2022 Gross Gross Number of shares proceeds Number of shares proceeds ATM program 3,552,224 $ 22,980,338 500,229 $ 2,549,677 Total 3,552,224 $ 22,980,338 500,229 $ 2,549,677 In August 2022, the Company filed a prospectus supplement to its short form base shelf prospectus, pursuant to which the Company may, at its discretion and from time-to-time, sell common shares of the Company for aggregate gross proceeds of up to US$100,000,000. The sale of common shares is to be made through “at-the-market distributions” (“ATM”), as defined in the Canadian Securities Administrators’ National Instrument 44-102 Shelf Distributions, directly on the TSX Venture Exchange and the NYSE American stock exchange. During the year ended December 31, 2023, the Company sold 3,552,224 (2022 – 500,229) common shares of the Company under the ATM program at an average price of $6.47 (2022 – $5.10) for gross proceeds of $22,980,338 (2022 - $2,549,677) or net proceeds of $22,440,215 (2022 - $2,489,754), and paid an aggregate commission of $540,123 (2022 - $59,923). At December 31, 2023, the Company completed $25,530,015 of the ATM program. On November 6, 2023, the Company completed a bought-deal prospectus offering of 7,725,000 flow-through common shares at a price of $7.25 per common share for gross proceeds of $56,006,250. The Company paid share issuance costs of $2,977,254 in cash of which $2,357,908 was paid to the underwriters. The premium received on the flow-through shares issued was determined to be $15,295,500. On November 2, 2023, the Company issued 39,762 common shares with a value of $203,979 pursuant to the acquisition of exploration and evaluation assets in accordance with the terms of certain property option agreements (Note 3). During the year ended December 31, 2023, 178,500 stock options were exercised at a weighted average exercise price of $0.74 per share for gross proceeds of $131,630. On December 14, 2022, the Company completed a bought-deal prospectus offering of 6,250,000 flow-through common shares at a price of $8.00 per common share for gross proceeds of $50,000,000. The Company paid share issuance costs of $2,717,627 in cash of which $2,104,250 was paid to the underwriters. The premium received on the flow-through shares issued was determined to be $14,500,000. On November 16, 2022, the Company issued 39,762 common shares with a value of $194,834 pursuant to the acquisition of exploration and evaluation assets in accordance with the terms of certain property option agreements (Note 3). During the year ended December 31, 2022, 4,341,875 stock options were exercised at a weighted average exercise price of $1.76 per share for gross proceeds of $7,649,906. During the year ended December 31, 2022, 39,960 warrants were exercised at a weighted average exercise price of $1.38 per share for gross proceeds of $55,140. 11. SHARE CAPITAL AND RESERVES Share Purchase Option Compensation Plan The Company has a share purchase option plan (the “Plan”) approved by the Company’s shareholders that allows it to grant share purchase options, subject to regulatory terms and approval, to its officers, directors, employees and service providers. The Plan is based on the maximum number of eligible shares not exceeding 10% in the aggregate and 5% with respect to any one optionee of the Company’s outstanding common shares in any twelve-month period. If outstanding share purchase options are exercised or expire, and/or the number of issued and outstanding common shares of the Company increases, then the share purchase options available to grant under the Plan increase proportionately. The exercise price and vesting terms of each share purchase option is set by the Board of Directors at the time of grant. Share purchase options granted are subject to a four-month hold period and exercisable for a period determined by the Board of Directors which cannot exceed ten years. The continuity of share purchase options for the year ended December 31, 2023 is as follows: Outstanding Cancelled/ Outstanding Exercisable Exercise December Forfeited/ December December Expiry date Price 31, 2022 Granted Exercised Expired 31, 2023 31, 2023 September 30, 2023 $ 0.40 150,000 — (150,000) — — — December 17, 2024 $ 0.50 1,725,000 — — — 1,725,000 1,725,000 April 18, 2025 $ 1.00 100,000 — — — 100,000 100,000 May 23, 2025 $ 1.075 75,000 — — — 75,000 75,000 August 11, 2025 $ 1.40 1,125,000 — — — 1,125,000 1,125,000 September 3, 2025 $ 2.07 75,000 — (25,000) — 50,000 50,000 October 1, 2025 $ 2.15 25,000 — — — 25,000 25,000 December 31, 2025 $ 4.10 5,305,000 — — — 5,305,000 5,305,000 April 29, 2026 $ 6.79 1,258,625 — — (295,750) 962,875 940,000 May 17, 2026 $ 8.62 200,000 — — — 200,000 200,000 September 27, 2026 $ 8.70 125,000 — — — 125,000 87,500 November 26, 2026 $ 8.04 55,000 — — (7,500) 47,500 33,250 January 4, 2027 $ 8.98 24,375 — — (1,875) 22,500 12,375 August 19, 2027 $ 5.75 340,000 — — — 340,000 226,000 September 8, 2027 $ 5.00 20,000 — — — 20,000 20,000 December 27, 2027 $ 5.68 2,257,500 — (3,500) (97,750) 2,156,250 1,938,750 12,860,500 — (178,500) (402,875) 12,279,125 11,862,875 Weighted average exercise price $ 4.01 — 0.74 6.55 3.97 3.89 Weighted average contractual remaining life (years) 3.24 — — — 2.25 2.20 11. SHARE CAPITAL AND RESERVES The continuity of share purchase options for the year ended December 31, 2022 is as follows: Outstanding Cancelled/ Outstanding Exercisable December Forfeited/ December December Expiry date Exercise Price 31, 2021 Granted Exercised Expired 31, 2022 31, 2022 September 30, 2023 $ 0.40 150,000 — — — 150,000 150,000 December 17, 2024 $ 0.50 1,925,000 — (200,000) — 1,725,000 1,725,000 April 18, 2025 $ 1.00 1,450,000 — (1,350,000) — 100,000 100,000 May 23, 2025 $ 1.075 200,000 — (125,000) — 75,000 75,000 August 11, 2025 $ 1.40 2,900,000 — (1,775,000) — 1,125,000 1,125,000 September 3, 2025 $ 2.07 115,000 — (40,000) — 75,000 75,000 October 1, 2025 $ 2.15 25,000 — — — 25,000 25,000 December 31, 2025 $ 4.10 6,155,000 — (850,000) — 5,305,000 5,305,000 April 29, 2026 $ 6.79 1,294,250 — (1,875) (33,750) 1,258,625 1,168,625 May 17, 2026 $ 8.62 200,000 — — — 200,000 200,000 September 27, 2026 $ 8.70 125,000 — — — 125,000 50,000 November 26, 2026 $ 8.04 55,750 — — (750) 55,000 22,000 January 4, 2027 $ 8.98 — 30,000 — (5,625) 24,375 7,500 August 19, 2027 $ 5.75 — 340,000 — — 340,000 169,000 September 8, 2027 $ 5.00 — 20,000 — — 20,000 10,000 December 27, 2027 $ 5.68 — 2,257,500 — — 2,257,500 1,834,500 14,595,000 2,647,500 (4,341,875) (40,125) 12,860,500 12,041,625 Weighted average exercise price $ 3.01 5.72 1.76 7.12 4.01 3.85 Weighted average contractual remaining life (years) 3.71 4.93 — — 3.24 3.15 The table below summarizes the weighted average fair value of share purchase options granted and exercised: Year ended December 31, 2023 2022 Weighted average: Fair value of share purchase options granted — $ 3.72 Fair value of share purchase options exercised $ 0.58 $ 1.27 Closing share price at the date of exercise $ 5.75 $ 6.36 Options were priced based on the Black-Scholes option pricing model using the following weighted average assumptions to estimate the fair value of options granted: Year ended December 31, 2023 2022 Risk-free interest rate — 3.21 % Expected option life in years — 5.0 Expected share price volatility (i) — 88.06 % Grant date share price — $ 5.39 Expected forfeiture rate — — Expected dividend yield — Nil (i) The expected share price volatility is based on the average historical share price of comparable companies over the life of the option. 11. SHARE CAPITAL AND RESERVES Warrants The Company did not have any warrants outstanding as at December 31, 2023 and 2022. The continuity of warrants for the year ended December 31, 2022 is as follows: Outstanding Outstanding Exercise December Cancelled/ December 31, Expiry Date Price 31, 2021 Issued Exercised Expired 2022 May 12, 2022 $ 1.30 25,154 — (24,000) (1,154) — May 13, 2022 $ 1.50 8,372 — — (8,372) — June 4, 2022 $ 1.50 15,960 — (15,960) — — 49,486 — (39,960) (9,526) — Weighted average exercise price $ 1.40 — 1.38 1.48 — Weighted average contractual remaining life (years) 0.38 — — — — The table below summarizes the weighted average fair value of warrants exercised: Year ended December 31, 2023 2022 Weighted average: Fair value of warrants exercised — $ 0.38 Closing share price at the date of exercise — $ 8.39 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
RELATED PARTY BALANCES AND TRANSACTIONS | 12. RELATED PARTY BALANCES AND TRANSACTIONS All transactions with related parties have occurred in the normal course of operations and on terms and conditions that are similar to those of transactions with unrelated parties and are measured at the amount of consideration paid or received. A summary of the Company’s related party transactions with corporations having similar directors and officers is as follows: Year ended December 31, 2023 2022 $ $ Amounts paid to EarthLabs Inc. (i) for exploration and evaluation 18,000 266,737 Amounts paid to DigiGeoData Inc. (i) for corporate development and investor relations — 1,800 Amounts paid to Notz Capital Corp. (ii) for corporate development and investor relations 104,637 — (i) EarthLabs Inc. is a related entity having the following common director and officer to the Company: Denis Laviolette, Director and President. DigiGeoData Inc. is a subsidiary of EarthLabs Inc. (ii) Notz Capital Corp. is a related entity of the Executive Chairman and Chief Executive Officer. There are no ongoing contractual commitments resulting from these transactions with related parties. Key management personnel compensation Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of executive and non-executive members of the Company’s Board of Directors and corporate officers. Year ended Salaries and Share-based December 31, Consulting compensation Bonus 2023 $ $ $ $ Executive Chairman and Chief Executive Officer 388,800 — 129,600 518,400 President 272,160 — 90,720 362,880 Chief Financial Officer 116,640 — 38,880 155,520 Chief Operating Officer 252,720 — 84,240 336,960 Chief Development Officer 336,960 235,560 112,320 684,840 Non-executive directors 216,000 — — 216,000 Total 1,583,280 235,560 455,760 2,274,600 Year ended Salaries and Share-based December 31, Consulting compensation Bonus 2022 $ $ $ $ Executive Chairman and Chief Executive Officer 360,000 1,844,584 180,000 2,384,584 Former Chief Executive Officer 105,000 — — 105,000 President 252,000 1,291,209 126,000 1,669,209 Chief Financial Officer 108,000 507,261 54,000 669,261 Chief Operating Officer 234,000 461,146 117,000 812,146 Chief Development Officer 182,000 391,207 78,000 651,207 Non-executive directors 113,110 1,390,778 — 1,503,888 Total 1,354,110 5,886,185 555,000 7,795,295 12. RELATED PARTY BALANCES AND TRANSACTIONS (continued) As at December 31, 2023, there was $18,888 payable to key management personnel in respect of key management compensation and expense reimbursements included in accounts payable and accrued liabilities (December 31, 2022 - $276,016). The amounts are unsecured, non-interest bearing and without fixed terms of repayment. Under the terms of their management agreements, certain officers of the Company are entitled to 18 months of base pay in the event of their agreements being terminated without cause. |
BASIC AND DILUTED LOSS PER COMM
BASIC AND DILUTED LOSS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2023 | |
BASIC AND DILUTED LOSS PER COMMON SHARE | |
BASIC AND DILUTED LOSS PER COMMON SHARE | 13. BASIC AND DILUTED LOSS PER COMMON SHARE Year ended December 31, 2023 2022 Loss attributable to common shareholders ($) 79,890,763 89,989,659 Weighted average number of common shares outstanding 178,363,103 166,858,136 Loss per share attributed to common shareholders $ 0.45 $ 0.54 Diluted loss per share did not include the effect of 12,279,125 (2022 – 12,860,500) share purchase options as they are anti-dilutive. |
SUPPLEMENTAL DISCLOSURE WITH RE
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | 12 Months Ended |
Dec. 31, 2023 | |
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | |
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | 14. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS Year ended December 31, 2023 2022 $ $ Non-cash investing and financing activities: Consideration received for disposal of Lucky Strike project (Note 3(ii)) 4,657,482 — Shares issued pursuant to acquisition of exploration and evaluation assets 203,979 194,834 Right-of-use assets and liabilities 151,527 152,501 Property and equipment included in accounts payable and accrued liabilities — 306,400 Share issuance costs included in accounts payable and accrued liabilities 9,850 296,106 Cash paid for income taxes — — Cash paid for interest — — Cash received for interest 2,715,926 1,220,279 |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENTED INFORMATION | |
SEGMENTED INFORMATION | 15. SEGMENTED INFORMATION The Company’s operations are limited to a single reportable segment, being mineral exploration and evaluation. All of the Company’s evaluation and exploration assets are located in Canada. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 16. INCOME TAXES The recovery of income taxes shown in the statements of loss and comprehensive loss differs from the amounts obtained by applying statutory rates to the loss before provision for income taxes due to the following: 2023 2022 $ $ (Loss) before income taxes (79,890,763) (89,989,659) Statutory tax rate 27.00 % 27.00 % Income tax (recovery) at statutory rate (21,571,000) (24,297,000) Flow-through shares and other non-deductible differences 16,107,000 17,468,000 Change in unrecognized deductible temporary differences 5,464,000 6,829,000 Income tax expense (recovery) — — The significant components of the Company’s deductible temporary differences, unused tax credits and unused tax losses that have not been included on the statement of financial position are as follows: 2023 2022 $ $ Investments 16,166,000 10,291,000 Exploration and evaluation assets 20,296,000 14,290,000 Non-capital tax losses carryforward 28,328,000 18,416,000 Net capital losses carryforward 11,528,000 11,528,000 Capital assets 2,276,000 1,362,000 Reclamation provision 1,285,000 1,411,000 Other 7,688,000 7,096,000 Total 87,567,000 64,394,000 As at December 31, 2023, the Company has Canadian non-capital loss carry forwards of approximately $28,328,000 that may be available for tax purposes. The Company’s non-capital losses expire as follows: Expiry Date $ 2040 791,000 2041 7,661,000 2042 9,964,000 2043 9,912,000 28,328,000 As at December 31, 2023, the Company also has capital loss carry forwards of approximately $11,528,000 that may be available for tax purposes. These losses can be carried forward indefinitely. |
CONTINGENCY
CONTINGENCY | 12 Months Ended |
Dec. 31, 2023 | |
CONTINGENCY | |
CONTINGENCY | 17. CONTINGENCY Claims and Legal Proceedings On November 15, 2019, ThreeD Capital Inc. (“ThreeD”) and 1313366 Ontario Inc. (“131” and together with ThreeD, the “Plaintiffs”) each entered into share purchase agreements (the “Share Purchase Agreements”) with Palisades Goldcorp Ltd. (“Palisades”) under which Palisades agreed to purchase the 13,500,000 common shares of the Company owned by ThreeD and the 4,000,000 common shares of the Company owned by 131 for $0.08 per common share. The transactions closed on November 20, 2019. As a private company with restrictions on the transfer of its common shares, the Company had to approve the proposed transfer, which it did by a consent resolution of the Board. On March 10, 2020, ThreeD Capital Inc. and 131 filed a statement of claim in the Ontario Superior Court of Justice against Collin Kettell, Palisades and the Company (the “ThreeD Claim”). Pursuant to the ThreeD Claim, the Plaintiffs are challenging the validity of the sale of 17,500,000 common shares by the Plaintiffs to Palisades on November 20, 2019. ThreeD and 131 claim that at the time of negotiation and execution of the Share Purchase Agreements, Palisades and Mr. Kettell were aware of positive drill results from the Company’s 2019 Drill Program and the results were not disclosed to ThreeD and 131 to their detriment. Palisades and Mr. Kettell strongly deny ThreeD and 131’s allegations. ThreeD and 131 have made specific claims for (a) recission of the Share Purchase Agreements on the basis of oppression or unfair prejudice; (b) or alternatively, damages in the amount of $21,000,000 for the alleged improper actions by ThreeD and 131, (c) a declaration that Palisades and Collin Kettell, as shareholder or director and/or officer of the Company, have had acted in a manner that is oppressive, unfairly prejudicial or unfairly disregarded their interests, (d) a declaration that Palisades and Collin Kettell engaged in insider trading contrary to section 138 of the Securities Act The Company filed a statement of defence in response to the ThreeD Claim on June 12, 2020, pursuant to which, among other things, the Company denies that it is a proper party to the ThreeD Claim and the allegations against it therein, including because no relief is claimed against the Company in paragraph 1 of the ThreeD Claim. The action has now progressed through the production of documents and oral examinations for discovery stages. In early 2022, the Plaintiffs formally amended their statement of claim to increase the amount claimed to $229,000,000 and to advance a direct claim of oppressive conduct against the Company. While continuing to deny any and all liability to the Plaintiffs, the Company has amended its defence to include specific denials of the new allegations of oppressive conduct against it. The parties completed an additional round of examinations for discovery in January 2023, following which the plaintiffs set the action down for trial. The parties had a mediation meeting on October 3, 2023, but were unable to settle the case. A trial date has been set for January 2025. The outcome of this claim cannot be determined at this time and therefore no amount has been accrued for. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | 18. FINANCIAL INSTRUMENTS The Company thoroughly examines the various financial instrument risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk, currency risk, and interest rate risk. Where material, these risks are reviewed and monitored by the Board of Directors. (a) Fair Values Financial assets and liabilities measured at fair value are recognized according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy are as follows: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The Company’s financial instruments measured at fair value are its investments, which include equities, warrants and Notes held. The fair value of equities held is determined using closing prices at the statement of financial position date with any unrealized gain or loss recognized in profit or loss. The Company’s warrants and Notes are classified within level 2 of the fair value hierarchy. Warrants are not traded on an active exchange and are valued using the Black-Scholes option pricing model using assumptions including risk-free interest rate, expected dividend yield, expected volatility and expected remaining life of the warrant which are supported by observable market conditions. The Notes are not traded on an active exchange and are valued using the Hull-White valuation model using assumptions including coupon rate, credit spread, mean reversion, rate volatility, riskless rate curve and redemption prices. The carrying values of other financial instruments, including cash, deposits, interest receivable, accounts payable and accrued liabilities, and lease liabilities approximate their fair values due to the short-term maturity of these financial instruments. The Company’s financial instruments according to the fair value hierarchy are as follows as at December 31, 2023: Level 1 Level 2 Level 3 Total $ $ $ $ Recurring measurements Carrying amount Fair value Investments 3,596,592 3,408,092 188,500 — 3,596,592 Secured notes 2,454,300 — 2,454,300 — 2,454,300 The Company’s financial instruments according to the fair value hierarchy are as follows as at December 31, 2022: Level 1 Level 2 Level 3 Total $ $ $ $ Recurring measurements Carrying amount Fair value Investments 7,501,155 7,474,287 26,868 — 7,501,155 There was no movement between levels during the year ended December 31, 2023. 18. FINANCIAL INSTRUMENTS (a) Fair Values The following table represents the changes in fair value measurements of financial instruments classified as Level 3. Within Level 3, the Company includes private company investments which are not quoted on an active exchange. These financial instruments are measured at fair value utilizing non-observable market inputs. Balance at Net Unrealized Balance at January 1 Additions Gains/(Losses) December 31 $ $ $ $ 2023 — — — — 2022 500,000 — (500,000) — The balance at December 31, 2023 and 2022 relates to the investment in shares of Long Range Exploration Corporation (Note 5(i)). Long Range Exploration Corporation is a private company without observable market prices for its common shares and is measured at its estimated fair value based on valuation techniques that use inputs derived by management. The key assumptions used in the valuation of this investment include, but are not limited to, the value at which a recent financing was completed by the investee, company-specific information, review of adjusted net book values, liquidation analysis, trends in general market conditions, share performance of comparable publicly-traded companies and a strategic review. The fair value of this investment has been estimated to be $Nil (b) Financial Instrument Risk Exposure Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company is subject to the credit through its investment in Maritime secured notes, in which case the maximum exposure to the credit risk is the full value of the secured notes of $2,454,300 at December 31, 2023. Interest receivable on Maritime secured notes is collected quarterly. Sales taxes recoverable are due from the Canada Revenue Agency and the Company places its cash with financial institutions with high credit ratings, therefore in management’s judgment, credit risk related to sales taxes recoverable and cash is low. There have been no changes in management’s methods for managing credit risk during the years ended December 31, 2023 and 2022. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has in place a planning and budgeting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company has historically relied on issuance of shares to fund exploration programs and may require doing so again in the future. As at December 31, 2023, the Company has total liabilities of $19,076,473 and cash of $53,884,809 which is available to discharge these liabilities (December 31, 2022 – total liabilities of $27,213,612 and cash of $82,165,273). As at December 31, 2023, the Company must spend another $45,500,423 of Qualifying CEE by December 31, 2024 to satisfy its remaining current flow-through liability of $12,426,322. There have been no changes in management’s methods for managing credit risk during the years ended December 31, 2023 and 2022. 18. FINANCIAL INSTRUMENTS (b) Financial Instrument Risk Exposure (continued) Market risk Market risk is the risk that changes in market prices, such as commodity prices, interest rates and foreign exchange rates will affect the Company’s net earnings or the value of financial instruments. The objective of the Company is to manage and mitigate market risk exposures within acceptable limits, while maximizing returns. (i) Currency risk Financial instruments that impact the Company’s net earnings or other comprehensive income due to currency fluctuation include cash accounts, secured notes, interest receivable, investments and accounts payable and accrued liabilities denominated in US dollars. The sensitivity of the Company’s net loss to changes in the exchange rate between the US dollar and the Canadian dollar at December 31, 2023 would change the Company’s net loss by $334,274 as a result of a 10% change in the exchange rate. (ii) Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market interest rates. As the Company deposits its cash into demand accounts with minimal interest rates, the interest rate risk is not significant. Interest receivable on secured notes is determined based on a floating interest rate and therefore subject to interest rate fluctuations, the interest rate risk is not material. (iii) Commodity price risk Commodity price risk is defined as the potential adverse impact on earnings and economic value due to commodity price movements and volatilities. The Company’s property has exposure to predominantly gold. Commodity prices, especially gold, greatly affect the value of the Company and the potential value of its property and investments. (iv) Equity price risk Equity price risk is the risk that the fair value of or future cash flows from the Company’s financial instruments will significantly fluctuate because of changes in market prices. The Company is exposed to market risk in trading its investments in unfavorable market conditions which could result in dispositions of investments at less than favorable prices. Additionally, the Company adjusts its investments to fair value at the end of each reporting period. This process could result in write-downs of the Company’s investments over one or more reporting periods, particularly during periods of overall market instability. The sensitivity of the Company’s net loss to changes in market prices at December 31, 2023 would change the Company’s net loss change There have been no changes in management’s methods for managing market risks during the years ended December 31, 2023 and 2022. |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2023 | |
CAPITAL MANAGEMENT | |
CAPITAL MANAGEMENT | 19. CAPITAL MANAGEMENT The Company’s objectives when managing capital are: ● To safeguard our ability to continue as a going concern in order to develop and operate our current projects; ● Pursue strategic growth initiatives; and ● To maintain a flexible capital structure which lowers the cost of capital. In assessing our capital structure, we include in our assessment the components of equity consisting of common shares, stock options and warrants, and deficit that as at December 31, 2023 totalled $65,503,020 (December 31, 2022 - $83,473,900). In order to facilitate the management of capital requirements, the Company prepares annual expenditure budgets and continuously monitors and reviews actual and forecasted cash flows. The annual and updated budgets are monitored and approved by the Board of Directors. To maintain or adjust the capital structure, the Company may, from time to time, issue new shares, issue new debt, repay debt or dispose of non-core assets. The Company’s current capital resources are sufficient to carry out our exploration plans and support operations through the current operating period. The Company is not subject to any capital requirements imposed by a regulator. There were no changes in the Company’s approach to capital management during the years ended December 31, 2023 and 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENTS ATM Sales Subsequent to December 31, 2023, the Company sold 2,217,353 common shares of the Company under the ATM program at an average price of $4.63 per share for gross proceeds of $10,262,236 or net proceeds of $10,021,027, and paid an aggregate commission of $241,209. Stock Options Expired Subsequent to December 31, 2023, 6,375 stock options with an exercise price of $ 6.79 per share and 5,000 stock options with an exercise price of $5.68 per share expired. |
MATERIAL ACCOUNTING POLICY IN_2
MATERIAL ACCOUNTING POLICY INFORMATION (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
MATERIAL ACCOUNTING POLICY INFORMATION. | |
Statement of compliance | a) Statement of compliance The Company’s financial statements, including comparatives, have been prepared in accordance with and using accounting policies in compliance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”), effective for the Company’s reporting for the years ended December 31, 2023 and 2022. |
Basis of presentation | b) Basis of presentation These financial statements have been prepared on a historical cost basis except for financial instruments classified as subsequently measured at fair value. In addition, these financial statements have been prepared using the accrual basis of accounting, except for cash flow information. |
Exploration, evaluation and development expenditures | c) Exploration, evaluation and development expenditures Costs incurred before the Company has obtained the legal right to explore are expensed as incurred. Once the legal right to explore has been acquired, the Company capitalizes the costs of acquiring rights or licenses, including those purchased from other parties or staked directly by the Company, until such time as the lease expires, it is abandoned, sold or considered impaired in value. Indirect administrative costs and costs of surveying, exploratory drilling, sampling, materials, fuel, equipment rentals or payments to contractors are expensed as incurred. Once the technical feasibility and commercial viability of extracting a mineral resource are demonstrable and economically recoverable reserves are developed, any direct exploration costs of the related property are capitalized as development costs. Exploration and evaluation properties are not amortized during the exploration and evaluation stage. The Company does not have revenue from mining operations. The Company recognizes gains or losses on the sale of exploration and evaluation assets in accordance with the terms of the purchase and sale agreements. Gains or losses are recognized when a mining option is executed and the cost is derecognized in accordance with the percentage interest sold. At each reporting date the carrying amounts of the Company’s exploration and evaluation assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash generating units (“CGU”) to which the exploration activity relates. Each of the Company’s properties is considered to be a separate CGU. Where an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. |
Decommissioning liabilities | d) Decommissioning liabilities The Company recognizes liabilities for statutory, contractual, constructive or legal obligations associated with the retirement of exploration and evaluation assets and equipment when those obligations result from the acquisition, construction, development or normal operation of assets. The net present value of future reclamation costs is expensed as part of exploration and evaluation expenditures up until the point it is concluded that the technical feasibility and commercial viability of extracting a mineral resource from a particular project are demonstrable and economically recoverable reserves are developed, after which any such costs are capitalized as development costs with a corresponding increase in the reclamation provision in the period incurred. Pre-tax discount rates that reflect the time value of money are used to calculate the net present value. The Company’s estimates of reclamation costs could change as a result of changes in regulatory requirements, discount rates and assumptions regarding the amount and timing of the future expenditures. These changes are recorded directly to exploration and evaluation expenditures or exploration and evaluation assets and the reclamation provision. The Company’s estimates are reviewed annually for changes in regulatory requirements, discount rates, effects of inflation and changes in estimates. Changes in the net present value, excluding changes in the Company’s estimates of reclamation costs, are charged to profit or loss for the period. |
Property, plant and equipment | e) Property, plant and equipment Property, plant and equipment is recorded at cost less accumulated depreciation calculated using the straight-line method over the estimated useful lives as follows: Property and Buildings 10-25 years Geological Equipment and Other Facilities 2-20 years Computer Equipment 2-5 years Office Furniture and Equipment 5 years Vehicles 3 years Depreciation of an asset begins once it is available for use. Long-lived assets are comprised of property and equipment. At the end of each reporting period the carrying amounts of the Company’s long-lived assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained by the sale of the asset in any arm’s length transaction between knowledgeable and willing parties. Fair value of mineral assets is generally determined as the present value of the estimated cash flows expected to arise from the continued use of the asset, including an expansion project. Value in use is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and from its ultimate disposal. Impairment is assessed at the CGU level, which is identified as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets. Non-financial assets that have been impaired are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed. When a reversal of a previous impairment is recorded, the reversal amount is adjusted for depreciation that would have been recorded had the impairment not taken place. |
Share-based payment transactions | f) Share-based payment transactions 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 the goods or services received or 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 amount recognized as an expense is adjusted to reflect the number of awards expected to vest. The offset to the recorded cost is to equity settled share-based payments reserve. Consideration received on the exercise of stock options is recorded as share capital and the related equity settled share-based payments reserve is transferred to share capital. Charges for options that are forfeited/cancelled before vesting are transferred from equity settled share-based payment reserve to deficit. Charges for options that are expired remain in equity settled share-based payment reserve. Where the terms and conditions of options are modified before they vest, the changes in fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. |
Valuation of equity units issued in private placements | g) Valuation of equity units issued in private placements The Company follows the pro-rata allocation method with respect to the measurement of shares and warrants issued as private placement units. This values each component at fair value and allocates total proceeds received between shares and warrants based on the pro rata relative values of the components. The fair value of the common shares is based on the closing quoted bid price on the issue date and the fair value of the common share purchase warrants is determined at the issue date using the Black- Scholes pricing model. In the event of a modification in warrants issued as private placement units, no re-measurement adjustment is recognized within equity. |
Financial instruments | h) Financial instruments Financial assets and liabilities are recognized when the entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the rights to receive cash flows have expired or substantially all risks and rewards of ownership have been transferred. Gains and losses on derecognition are generally recognized in profit and loss. Financial liabilities are derecognized when the Company’s obligation has been discharged, cancelled or expired. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) h) Financial instruments (continued) Financial assets are classified and measured either at amortized cost, fair value through other comprehensive income (“FVOCI”) or fair value through profit or loss (“FVTPL”) based on the business model in which they are held and the characteristics of their contractual cash flows. 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 are measured at amortized cost at the end of the subsequent accounting periods. All other financial assets including equity investments and secured notes are measured at their fair values at the end of subsequent accounting periods, with any change taken through profit or loss or other comprehensive income. Financial liabilities include accounts payable and lease liabilities, which are measured at amortized cost. All financial instruments are initially recognized at fair value on the statement of financial position. Subsequent measurement of financial instruments is based on their classification. Financial assets and liabilities classified at FVTPL are measured at fair value with changes in those fair values recognized in profit or loss or other comprehensive income for the period. Financial assets and liabilities classified at amortized cost are measured at amortized cost using the effective interest method. The following table sets out the classifications of the Company’s financial assets and liabilities: Financial assets/liabilities Classification under IFRS 9 Cash Amortized cost Investments FVTPL Deposits Amortized cost Secured notes FVTPL Accounts payables and accrued liabilities Amortized cost Lease liabilities Amortized cost IFRS requires an expected credit loss model for calculating the impairment of financial assets. The expected credit loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in initial recognition. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods, if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods, if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. |
Investments | i) Investments Purchases and sales of investments are recognized on the settlement date. Realized gains and losses on disposal of investments and unrealized gains and losses in the fair value of investments are reflected in the statement of loss and comprehensive loss. Upon disposal of an investment, previously recognized unrealized gains or losses are reversed so as to recognize the full realized gain or loss in the period of disposition. All transaction costs associated with the acquisition and disposition of investments are expensed to the statement of loss and comprehensive loss as incurred. Interest income and other income are recorded on an accrual basis. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) i) Investments (continued) The fair value of investments is determined as follows: (a) Securities that are traded in an active market and for which no sales restrictions apply, are presented at fair value based on quoted closing trade prices at the date of statement of financial position. If there were no trades on the date of the statement of financial position, these securities are presented at the closing price on the last date the security traded. These investments are included in Level 1 of the fair value hierarchy. (b) Securities that are traded in an active market, but which are escrowed or otherwise restricted as to their sale or transfer, are recorded at amounts discounted from market value to a maximum of 10% . In determining the discount for such investments, the Company considers the nature and length of the restriction. These investments are included in Level 2 of the fair value hierarchy. (c) Securities that are not traded in an active market or are valued based on unobservable market inputs are included in the Level 3 of the fair value hierarchy. See Note 5 for details of investments held by the Company as at December 31, 2023 and 2022. |
Investment in an associate | j) Investment in an associate |
Flow-through shares | k) Flow-through shares The Company will from time to time issue flow-through common shares to finance a significant portion of its exploration program. Pursuant to the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company bifurcates the flow-through share into i) a flow-through share premium, equal to the estimated premium, if any, investors pay for the flow-through feature, which is recognized as a liability, and ii) share capital. Upon expenditures being incurred, the Company derecognizes the liability and recognizes a deferred tax liability for the amount of tax reduction renounced to the shareholders. The premium is recognized as recovery of flow-through premium liability and the related deferred tax is recognized as a tax provision. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) k) Flow-through shares (continued) |
Income taxes | l) Income taxes Income tax on the profit or loss for the years presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years. Deferred tax is provided using the statement of financial position liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at year end applicable to the period of expected realization or settlement. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. |
Significant accounting estimates and judgments | m) Significant accounting estimates The preparation of these financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. These financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates may be pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant assumptions about the future and other sources of estimation uncertainty that management has made at year end that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to the following: 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) m) Significant accounting estimates and judgments (i) Critical accounting estimates Valuation of Secured Notes The fair value of secured notes at the issue date and the period end date is determined using the Hull-White model of interest rate uncertainty within a FINCAD Callable / Puttable Bond Model. The model involves various inputs to determine the fair value of the secured notes, including coupon rate, credit spread, mean reversion, rate volatility, riskless rates and redemption prices. Certain of the inputs are estimates that involve considerable judgment and are, or could be, affected by significant factors that are out of the Company’s control. These estimates impact the value of the secured notes recognized in the statement of financial position and revaluation adjustments recognized in the statement of loss and comprehensive loss during the period. Valuation of Options Granted and Warrants Issued The fair value of common share purchase options granted and warrants issued is determined at the issue date using the Black-Scholes option pricing model. The Black-Scholes model involves six key inputs to determine the fair value of an option, which are: risk-free interest rate, exercise price, market price at the grant date, expected dividend yield, expected life, and expected volatility. Certain of the inputs are estimates that involve considerable judgment and are, or could be, affected by significant factors that are out of the Company’s control. The Company is also required to estimate the future forfeiture rate of options based on historical information in its calculation of share-based payments expense. These estimates impact the values of stock-based compensation expense, share capital, and reserves. Fair Value of Financial Derivatives Investments in warrants that are not traded on a recognized securities exchange do not have a readily available market value. When there are sufficient and reliable market inputs, a Black-Scholes option pricing model is used. The Black-Scholes model involves six key inputs to determine the fair value of a warrant, which include: risk-free interest rate, exercise price, market price at the grant date, expected dividend yield, expected life, and expected volatility. Certain of the inputs are estimates that involve considerable judgment and are or could be affected by significant factors that are out of the Company’s control. The absence of the occurrence of any of these events, any significant change in trends in general market conditions, or any significant change in share performance of comparable publicly-traded companies indicates generally that the fair value of the investment has not materially changed. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) m) Significant accounting estimates and judgments (continued) (i) Critical accounting estimates (continued Computation of Income Taxes The determination of tax expense for the period and deferred tax assets and liabilities involves significant estimation and judgment by management. In determining these amounts, management interprets tax legislation in a variety of jurisdictions and make estimates of the expected timing of the reversal of deferred tax assets and liabilities. Management also makes estimates of future earnings which affect the extent to which potential future tax benefits may be used. The Company is subject to assessments by taxation authorities, which may interpret legislation differently. These differences may affect the final amount or the timing of the payment of taxes. We provide for such differences where known based on our best estimate of the probable outcome of these matters. Shares Issued to Acquire Exploration and Evaluation Assets From time to time, the Company issues common shares in the course of acquiring exploration and evaluation assets. When shares are issued without cash consideration, the transaction is recognized at the fair value of the assets received. In the event that the fair value of the assets cannot be reliably determined, the Company will recognize the transaction at the fair value of the shares issued. These estimates impact the value of share capital and exploration and evaluation assets. Valuation of flow-through premium The determination of the valuation of flow-through premium is subject to significant judgment and estimates. The flow-through premium is valued as the estimated premium that investors pay for the flow-through feature, being the portion in excess of the market value of shares without the flow-through feature. Reclamation provision The valuation of any reclamation provision is subject to significant judgement and estimates. Assumptions, based on the current economic environment, are made to estimate the future liability recognized in Note 10. These estimates take into account any material changes to the assumptions that occur when reviewed regularly by management and are based on current regulatory requirements. Significant changes in estimates of discount rate, contamination, restoration standards and techniques will result in changes to the provision from period to period. Actual reclamation and closure costs will ultimately depend on future market prices for the costs which will reflect the market condition at the time the expenditures are actually incurred. The final cost of the reclamation provision currently recognized may be higher or lower than currently provided for. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) m) Significant accounting estimates (continued) (ii) Critical accounting judgments Impairment of Exploration and Evaluation Assets Management is required to assess impairment in respect to the Company’s mineral property interests. The triggering events are defined in IFRS 6. In making the assessment, management is required to make judgments on the status of each project and the future plans towards finding commercial reserves. The carrying value of each exploration and evaluation asset is reviewed regularly for conditions that may suggest impairment.This review requires significant judgment. Factors considered in the assessment of asset impairment include, but are not limited to, whether there has been a significant adverse change in the legal, regulatory, accessibility, title, environmental or political factors that could affect the property’s value; whether there has been an accumulation of costs significantly in excess of the amounts originally expected for the property’s acquisition, development or cost of holding; and whether exploration activities produced results that are not promising such that no more work is being planned in the foreseeable future. If impairment is determined to exist, a formal estimate of the recoverable amount is performed and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount. Management has determined that there were indicators of impairment as at June 30, 2023 and has impaired $8,000 (December 31, 2022 - $Nil) in exploration and evaluation assets. There were no indicators of impairment at December 31, 2023 or 2022. Refer to Note 3(ii) for further information. Determination of whether the Company has significant influence over investees Significant influence is presumed to exist where the Company has between 20% and 50% of the voting rights, but can also arise where the Company has less than 20%, if the Company has the power to participate in the financial and operating policy decisions affecting the entity. Determination of whether the Company has significant influence over investees requires an assessment of the activities of the investee that significantly affect the investee's returns, including strategic, operational and financing decision-making, appointment, remuneration and termination of the key management personnel and when decisions related to those activities can be influenced by the Company. Based on assessments of the relevant facts and circumstances, primarily, the Company's ownership interests, board representation and ability to influence operating, strategic and financing decisions, the Company concluded that it has significant influence over Kirkland Lake Discoveries Corp. described in Note 7. Impairment assessment for investment in associates At each balance sheet date, management considers whether there is objective evidence of impairment in associates, including one or more loss events that would evidence a significant or prolonged decline in the fair value of the investment in associates below the carrying value. The net investment in an associate is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the net investment and that loss event or events have a negative impact on the estimated future cash flows from the net investment that can be reliably estimated. If there is such evidence, management determines the amount of impairment to record, if any, in relation to the associate. The Company had significant influence over Kirkland Lake Discoveries Corp. during the period from May 25, 2023 to December 31, 2023 and as a result has accounted for it as an investment in an associate during this period. Management has determined that there were indicators of impairment as at December 31, 2023 and has impaired $1,000,237 in its investment in Kirkland Lake Discoveries Corp. 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) m) Significant accounting estimates (continued) (ii) Critical accounting judgments Presentation of financial statements as a going concern Presentation of the financial statements as a going concern which assumes that the Company will continue in operation for the foreseeable future, obtain additional financing as required, and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due involves significant judgment by management. |
Initial application of standards, interpretations and amendments to standards and interpretations in the reporting period | n) Initial application of standards, interpretations and amendments to standards and interpretations in the reporting period The IASB issued certain new accounting standards or amendments that are mandatory for accounting periods on or after January 1, 2023. The effect of such new accounting standards or amendments did not have a material impact on the Company and therefore the Company did not record any adjustments to the financial statements. |
New and amended IFRS standards not yet effective | o) Certain new accounting standards or interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards and interpretations are not expected to have a material impact on the Company’s financial statements. |
MATERIAL ACCOUNTING POLICY IN_3
MATERIAL ACCOUNTING POLICY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
MATERIAL ACCOUNTING POLICY INFORMATION. | |
Summary of estimated useful lives of property, plant and equipment | Property and Buildings 10-25 years Geological Equipment and Other Facilities 2-20 years Computer Equipment 2-5 years Office Furniture and Equipment 5 years Vehicles 3 years |
Schedule of classifications of the Company's financial assets and liabilities | Financial assets/liabilities Classification under IFRS 9 Cash Amortized cost Investments FVTPL Deposits Amortized cost Secured notes FVTPL Accounts payables and accrued liabilities Amortized cost Lease liabilities Amortized cost |
EXPLORATION AND EVALUATION AS_2
EXPLORATION AND EVALUATION ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EXPLORATION AND EVALUATION ASSETS | |
Schedule of summary of the carrying costs of acquisition costs and exploration expenditures incurred to date for each exploration and evaluation asset | Newfoundland Queensway (i) Other Ontario (ii) Total Year ended December 31, 2023 $ $ $ $ Exploration and evaluation assets Balance as at December 31, 2022 8,616,693 47,916 272,000 8,936,609 Additions Acquisition costs 381,220 30,793 — 412,013 Claim staking and license renewal costs 16,565 — — 16,565 Disposals Disposal of exploration and evaluation assets — — (264,000) (264,000) Impairment of exploration and evaluation assets — — (8,000) (8,000) Balance as at December 31, 2023 9,014,478 78,709 — 9,093,187 Exploration and evaluation expenditures Cumulative exploration expense – December 31, 2022 121,302,318 539,998 3,428,034 125,270,350 Assays 16,102,874 14,515 — 16,117,389 Drilling 41,121,168 — — 41,121,168 Environmental studies 1,280,147 — — 1,280,147 Geochemistry 857,555 — — 857,555 Geophysics 814,877 — — 814,877 Imagery and mapping 644,205 9,932 — 654,137 Metallurgy 950,855 — — 950,855 Office and general 855,902 — 144 856,046 Other 590,575 — — 590,575 Permitting 225,162 — — 225,162 Property taxes, mining leases and rent 143,010 — 5,915 148,925 Reclamation 2,122,598 — — 2,122,598 Salaries and consulting 13,243,577 10,103 13,850 13,267,530 Seismic survey 8,118,668 — — 8,118,668 Supplies and equipment 4,438,579 — 480 4,439,059 Technical reports 55,025 — — 55,025 Travel and accommodations 1,481,399 309 155 1,481,863 Trenching 982,148 — — 982,148 Exploration cost recovery (45,450) — — (45,450) 93,982,874 34,859 20,544 94,038,277 Cumulative exploration expense – December 31, 2023 215,285,192 574,857 3,448,578 219,308,627 Newfoundland Queensway (i) Other Ontario (ii) Total Year ended December 31, 2022 $ $ $ Exploration and evaluation assets Balance as at December 31, 2021 8,236,181 17,700 271,600 8,525,481 Additions Acquisition costs 364,738 30,096 — 394,834 Claim staking and license renewal costs 15,774 120 400 16,294 Balance as at December 31, 2022 8,616,693 47,916 272,000 8,936,609 Exploration and evaluation expenditures Cumulative exploration expense – December 31, 2021 51,439,957 59,646 2,350,201 53,849,804 Assays 9,741,609 12,545 233,314 9,987,468 Drilling 36,118,624 352,056 449,063 36,919,743 Environmental studies 537,234 — — 537,234 Geochemistry 48,116 — — 48,116 Geophysics 1,894,010 — 177,916 2,071,926 Imagery and mapping 95,893 — — 95,893 Metallurgy 65,644 — — 65,644 Office and general 672,019 50 4,811 676,880 Property taxes, mining leases and rent 103,750 — 3,205 106,955 Petrography 9,372 — — 9,372 Reclamation 2,464,985 — — 2,464,985 Salaries and consulting 11,166,116 43,866 155,729 11,365,711 Supplies and equipment 5,204,988 71,187 35,182 5,311,357 Technical reports 458,439 — 9,567 468,006 Travel and accommodations 1,341,562 648 9,046 1,351,256 Exploration cost recovery (60,000) — — (60,000) 69,862,361 480,352 1,077,833 71,420,546 Cumulative exploration expense – December 31, 2022 121,302,318 539,998 3,428,034 125,270,350 (i) Queensway Project – Gander, Newfoundland As at December 31, 2023, the Company owns a 100% interest in 96 (December 31, 2022 – 94) mineral licenses including 6,659 (December 31, 2022 – 6,649) claims comprising 166,475 (December 31, 2022 – 166,225) hectares of land located in Gander, Newfoundland. The project rights were acquired by map staking mineral licenses and making staged payments in cash and common shares of the Company from 2016 through 2022 under ten separate option agreements, of which nine are completed. The Queensway Project carries various net smelter return (“NSR”) royalties ranging from 0.4% to 2.5% and include buy-back provisions that allows the Company, at its option, to reduce the NSR by making lump-sum payments ranging from $250,000 to $1,000,000 to the holders of the royalties.The total cost of the NSR’s if the Company were to exercise all of its buy-back rights is $5,250,000 resulting in NSR’s ranging from 0.4% to 1.5% for the mineral licenses subsect to an NSR royalty. 3. EXPLORATION AND EVALUATION ASSETS (continued) (i) Queensway Project – Gander, Newfoundland On November 2, 2022, the Company entered into a definitive property option agreement to acquire a 100% interest in five mineral licenses located in Gander, Newfoundland. Under the terms of this agreement, the Company may exercise the option by issuing an aggregate of 487,078 common shares in the capital of the Company and making aggregate cash payments of $2,350,000 to the optionors as follows: ● $200,000 (paid) and 39,762 common shares (issued) on the later of (i) staking confirmation date as defined in the Option Agreement and (ii) the receipt of the TSX-Venture Exchange’s approval; ● $200,000 (paid) and 39,762 common shares on or before November 2, 2023 (issued); ● $250,000 and 69,583 common shares on or before November 2, 2024; ● $300,000 and 89,463 common shares on or before November 2, 2025; ● $600,000 and 129,224 common shares on or before November 2, 2026; and ● $800,000 and 119,284 common shares on or before November 2, 2027. (ii) Ontario Projects Disposal of Lucky Strike During the year ended December 31, 2023, the Company recognized a gain on disposal of its Lucky Strike project in Kirkland Lake, Ontario of $4,217,935. The Company received total non-cash consideration having a fair value of $4,657,482 consisting of 28,612,500 common shares of Kirkland Lake Discoveries Corp. and a 1.0% net smelter return royalty on future production from the mineral claims. The Company recognized $175,547 of professional fees in connection with the transaction and derecognized the Lucky Strike project at its carrying value of $264,000. Refer to Note 7 for further information. As at December 31, 2022, the Company owned a 100% interest in the Lucky Strike project in Kirkland Lake, Ontario comprising 11,684 hectares, as well as a portfolio of mining and royalty interests throughout northeastern Ontario. The project rights were acquired by map staking mineral licenses and making staged payments in cash and common shares of the Company from 2016 through 2019 under a fully executed option agreement. The optioned lands carried an NSR ranging from 1% to 2%. Impairment of Ontario Properties During the year ended December 31, 2023, the Company recorded an impairment of $8,000 (December 31, 2023 - $Nil) in acquisition costs related to projects no longer being explored. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT | |
Schedule of property and equipment | Geological Office Property Equipment Furniture and Computer and Other and Buildings Equipment Facilities Vehicles Equipment Total $ $ $ $ $ $ Cost Balance at January 1, 2022 2,127,485 32,392 823,122 531,240 — 3,514,239 Additions 4,065,427 61,106 724,332 248,648 30,148 5,129,661 Balance at December 31, 2022 6,192,912 93,498 1,547,454 779,888 30,148 8,643,900 Additions 172,344 46,395 763,576 190,230 8,205 1,180,750 Disposals — (3,401) — (34,795) — (38,196) Balance at December 31, 2023 6,365,256 136,492 2,311,030 935,323 38,353 9,786,454 Accumulated Depreciation Balance at January 1, 2022 53,654 17,107 333,474 195,545 — 599,780 Depreciation 87,872 26,682 454,124 208,016 412 777,106 Balance at December 31, 2022 141,526 43,789 787,598 403,561 412 1,376,886 Depreciation 271,505 42,327 228,621 244,312 7,379 794,144 Disposals — (567) — (22,617) — (23,184) Balance at December 31, 2023 413,031 85,549 1,016,219 625,256 7,791 2,147,846 Carrying Amount At December 31, 2022 6,051,386 49,709 759,856 376,327 29,736 7,267,014 At December 31, 2023 5,952,225 50,943 1,294,811 310,067 30,562 7,638,608 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENTS | |
Summary of investments | December 31, 2023 December 31, 2022 $ $ Equities held (i) 3,408,092 7,474,287 Warrants held (ii) 188,500 26,868 Total Investments 3,596,592 7,501,155 |
Summary of equities | The Company held the following equities as at December 31, 2023: Fair Value December 31, Cost 2023 Quantity $ $ Exploits Discovery Corp. 13,229,466 8,462,704 1,587,536 Labrador Gold Corp. 12,555,556 8,850,000 1,820,556 Long Range Exploration Corporation 5,000,000 500,000 — Total Equities 17,812,704 3,408,092 Fair Value December 31, Cost 2022 Quantity $ $ Exploits Discovery Corp. 13,229,466 8,462,704 3,770,398 Labrador Gold Corp. 12,555,556 8,850,000 3,703,889 Long Range Exploration Corporation 5,000,000 500,000 — Total Equities 17,812,704 7,474,287 |
Summary of warrants | Fair Value December 31, Cost 2023 Quantity $ $ Maritime Resources Corp. (1) 15,324,571 174,500 188,500 Total Warrants 174,500 188,500 (1) Each warrant is exercisable into one common share of Maritime Resources Corp. at a price of $0.07 per warrant until August 14, 2025, subject to extension to August 14, 2026 in the event that the Initial Maturity Date of the notes is extended to the Extended Maturity Date as defined in Note 8. Fair Value December 31, Cost 2022 Quantity $ $ Exploits Discovery Corp. 6,666,667 — 10,331 Labrador Gold Corp. 6,277,778 — 16,537 Total Warrants — 26,868 |
Summary of analysis of investments including related gains and losses | Year ended December 31, 2023 2022 $ $ Investments, beginning of year 7,501,155 31,942,458 Purchases of investments 174,500 — Proceeds on disposal of investments — (4,827,266) Realized losses on investments — (4,675,084) Unrealized losses on investments (4,079,063) (14,938,953) Investments, end of year 3,596,592 7,501,155 |
PREPAID EXPENSES AND DEPOSITS (
PREPAID EXPENSES AND DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREPAID EXPENSES AND DEPOSITS | |
Schedule of prepaid expenses and deposits | December 31, December 31, 2023 2022 $ $ Prepaid expenses 1,296,217 1,218,184 Mineral license deposits 222,940 227,527 Prepaid expenses and deposits, end of year 1,519,157 1,445,711 |
INVESTMENT IN KIRKLAND LAKE D_2
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP | |
Schedule of summarised financial information of the company's investment in associates | December 31, 2023 $ Summarised Statement of Financial Position Current assets 4,601,136 Non-current assets 4,583,769 Current liabilities (322,453) Non-current liabilities — Net Assets 8,862,452 The Company’s ownership interest 32.29 % Share of Kirkland Lake Discoveries Corp.’s net assets 2,861,250 Summarised Statement of Loss and Comprehensive Loss Net loss and comprehensive loss for the period (2,465,518) Share of Kirkland Lake Discoveries Corp.’s loss for the period from May 25, 2023 to December 31, 2023 (795,995) |
Schedule of movement in investment in associates | Net Carrying amount – May 25, 2023 $ 4,657,482 Share of loss from operations of associate during the period (795,995) Impairment of equity investment (1,000,237) Net Carrying amount – December 31, 2023 $ 2,861,250 |
SECURED NOTES (Tables)
SECURED NOTES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SECURED NOTES | |
Schedule of movement in the company's secured notes | Period ended December 31, 2023 $ Secured notes, beginning of year — Purchase of secured notes 2,464,000 Revaluation of secured notes 33,599 Foreign exchange loss (43,299) Secured notes, end of year 2,454,300 |
FLOW-THROUGH SHARE PREMIUM (Tab
FLOW-THROUGH SHARE PREMIUM (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FLOW-THROUGH SHARE PREMIUM | |
Schedule of flow-through share premium | Issued Issued Issued Issued August 24, November 25, December 14, November 6, 2021 2021 2022 2023 Total $ $ $ $ $ Balance at December 31, 2021 10,129,196 12,600,000 — — 22,729,196 Liability incurred on flow-through shares issued — — 14,500,000 — 14,500,000 Settlement of flow-through share premium on expenditures incurred (10,129,196) (7,036,650) — — (17,165,846) Balance at December 31, 2022 — 5,563,350 14,500,000 — 20,063,350 Liability incurred on flow-through shares issued — — — 15,295,500 15,295,500 Settlement of flow-through share premium on expenditures incurred — (5,563,350) (14,500,000) (2,869,178) (22,932,528) Balance at December 31, 2023 — — — 12,426,322 12,426,322 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Schedule of accounts payable and accrued liabilities | December 31, 2023 December 31, 2022 $ $ Accounts payable and accrued liabilities 5,207,323 5,588,742 Reclamation provision (1) 1,285,031 1,411,293 Accounts payable and accrued liabilities, end of year 6,492,354 7,000,035 (1) Provincial laws and regulations concerning environmental protection affect the Company’s exploration and operations. Under current regulations, the Company is required to meet performance standards to minimize the environmental impact from its activities and to perform site restoration and other reclamation activities. The Company’s reclamation provision is based on known requirements. |
Schedule of company's reclamation provision | December 31, 2023 December 31, 2022 $ $ Balance, beginning of year 1,411,293 — Additions to reclamation provision 1,327,278 1,411,293 Change in estimate 2,687 — Reclamation costs incurred (1,456,227) — Balance, end of year 1,285,031 1,411,293 |
SHARE CAPITAL AND RESERVES (Tab
SHARE CAPITAL AND RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHARE CAPITAL AND RESERVES | |
Schedule of common shares issued | Year ended Year ended December 31, 2023 December 31, 2022 Gross Gross Number of shares proceeds Number of shares proceeds ATM program 3,552,224 $ 22,980,338 500,229 $ 2,549,677 Total 3,552,224 $ 22,980,338 500,229 $ 2,549,677 |
Summary of continuity of share purchase options | Outstanding Cancelled/ Outstanding Exercisable Exercise December Forfeited/ December December Expiry date Price 31, 2022 Granted Exercised Expired 31, 2023 31, 2023 September 30, 2023 $ 0.40 150,000 — (150,000) — — — December 17, 2024 $ 0.50 1,725,000 — — — 1,725,000 1,725,000 April 18, 2025 $ 1.00 100,000 — — — 100,000 100,000 May 23, 2025 $ 1.075 75,000 — — — 75,000 75,000 August 11, 2025 $ 1.40 1,125,000 — — — 1,125,000 1,125,000 September 3, 2025 $ 2.07 75,000 — (25,000) — 50,000 50,000 October 1, 2025 $ 2.15 25,000 — — — 25,000 25,000 December 31, 2025 $ 4.10 5,305,000 — — — 5,305,000 5,305,000 April 29, 2026 $ 6.79 1,258,625 — — (295,750) 962,875 940,000 May 17, 2026 $ 8.62 200,000 — — — 200,000 200,000 September 27, 2026 $ 8.70 125,000 — — — 125,000 87,500 November 26, 2026 $ 8.04 55,000 — — (7,500) 47,500 33,250 January 4, 2027 $ 8.98 24,375 — — (1,875) 22,500 12,375 August 19, 2027 $ 5.75 340,000 — — — 340,000 226,000 September 8, 2027 $ 5.00 20,000 — — — 20,000 20,000 December 27, 2027 $ 5.68 2,257,500 — (3,500) (97,750) 2,156,250 1,938,750 12,860,500 — (178,500) (402,875) 12,279,125 11,862,875 Weighted average exercise price $ 4.01 — 0.74 6.55 3.97 3.89 Weighted average contractual remaining life (years) 3.24 — — — 2.25 2.20 Outstanding Cancelled/ Outstanding Exercisable December Forfeited/ December December Expiry date Exercise Price 31, 2021 Granted Exercised Expired 31, 2022 31, 2022 September 30, 2023 $ 0.40 150,000 — — — 150,000 150,000 December 17, 2024 $ 0.50 1,925,000 — (200,000) — 1,725,000 1,725,000 April 18, 2025 $ 1.00 1,450,000 — (1,350,000) — 100,000 100,000 May 23, 2025 $ 1.075 200,000 — (125,000) — 75,000 75,000 August 11, 2025 $ 1.40 2,900,000 — (1,775,000) — 1,125,000 1,125,000 September 3, 2025 $ 2.07 115,000 — (40,000) — 75,000 75,000 October 1, 2025 $ 2.15 25,000 — — — 25,000 25,000 December 31, 2025 $ 4.10 6,155,000 — (850,000) — 5,305,000 5,305,000 April 29, 2026 $ 6.79 1,294,250 — (1,875) (33,750) 1,258,625 1,168,625 May 17, 2026 $ 8.62 200,000 — — — 200,000 200,000 September 27, 2026 $ 8.70 125,000 — — — 125,000 50,000 November 26, 2026 $ 8.04 55,750 — — (750) 55,000 22,000 January 4, 2027 $ 8.98 — 30,000 — (5,625) 24,375 7,500 August 19, 2027 $ 5.75 — 340,000 — — 340,000 169,000 September 8, 2027 $ 5.00 — 20,000 — — 20,000 10,000 December 27, 2027 $ 5.68 — 2,257,500 — — 2,257,500 1,834,500 14,595,000 2,647,500 (4,341,875) (40,125) 12,860,500 12,041,625 Weighted average exercise price $ 3.01 5.72 1.76 7.12 4.01 3.85 Weighted average contractual remaining life (years) 3.71 4.93 — — 3.24 3.15 |
Schedule of weighted average fair value of share purchase options granted and exercised | Year ended December 31, 2023 2022 Weighted average: Fair value of share purchase options granted — $ 3.72 Fair value of share purchase options exercised $ 0.58 $ 1.27 Closing share price at the date of exercise $ 5.75 $ 6.36 |
Summary of weighted average assumptions used to estimate the fair value of options granted | Year ended December 31, 2023 2022 Risk-free interest rate — 3.21 % Expected option life in years — 5.0 Expected share price volatility (i) — 88.06 % Grant date share price — $ 5.39 Expected forfeiture rate — — Expected dividend yield — Nil (i) The expected share price volatility is based on the average historical share price of comparable companies over the life of the option. |
Summary of continuity of warrants | Outstanding Outstanding Exercise December Cancelled/ December 31, Expiry Date Price 31, 2021 Issued Exercised Expired 2022 May 12, 2022 $ 1.30 25,154 — (24,000) (1,154) — May 13, 2022 $ 1.50 8,372 — — (8,372) — June 4, 2022 $ 1.50 15,960 — (15,960) — — 49,486 — (39,960) (9,526) — Weighted average exercise price $ 1.40 — 1.38 1.48 — Weighted average contractual remaining life (years) 0.38 — — — — |
Schedule of weighted average fair value of warrants exercised | Year ended December 31, 2023 2022 Weighted average: Fair value of warrants exercised — $ 0.38 Closing share price at the date of exercise — $ 8.39 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
Summary of the related party transactions | Year ended December 31, 2023 2022 $ $ Amounts paid to EarthLabs Inc. (i) for exploration and evaluation 18,000 266,737 Amounts paid to DigiGeoData Inc. (i) for corporate development and investor relations — 1,800 Amounts paid to Notz Capital Corp. (ii) for corporate development and investor relations 104,637 — (i) EarthLabs Inc. is a related entity having the following common director and officer to the Company: Denis Laviolette, Director and President. DigiGeoData Inc. is a subsidiary of EarthLabs Inc. (ii) Notz Capital Corp. is a related entity of the Executive Chairman and Chief Executive Officer. |
Summary of key management personnel compensation | Year ended Salaries and Share-based December 31, Consulting compensation Bonus 2023 $ $ $ $ Executive Chairman and Chief Executive Officer 388,800 — 129,600 518,400 President 272,160 — 90,720 362,880 Chief Financial Officer 116,640 — 38,880 155,520 Chief Operating Officer 252,720 — 84,240 336,960 Chief Development Officer 336,960 235,560 112,320 684,840 Non-executive directors 216,000 — — 216,000 Total 1,583,280 235,560 455,760 2,274,600 Year ended Salaries and Share-based December 31, Consulting compensation Bonus 2022 $ $ $ $ Executive Chairman and Chief Executive Officer 360,000 1,844,584 180,000 2,384,584 Former Chief Executive Officer 105,000 — — 105,000 President 252,000 1,291,209 126,000 1,669,209 Chief Financial Officer 108,000 507,261 54,000 669,261 Chief Operating Officer 234,000 461,146 117,000 812,146 Chief Development Officer 182,000 391,207 78,000 651,207 Non-executive directors 113,110 1,390,778 — 1,503,888 Total 1,354,110 5,886,185 555,000 7,795,295 |
BASIC AND DILUTED LOSS PER CO_2
BASIC AND DILUTED LOSS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BASIC AND DILUTED LOSS PER COMMON SHARE | |
Schedule of basic and diluted loss per common share | Year ended December 31, 2023 2022 Loss attributable to common shareholders ($) 79,890,763 89,989,659 Weighted average number of common shares outstanding 178,363,103 166,858,136 Loss per share attributed to common shareholders $ 0.45 $ 0.54 |
SUPPLEMENTAL DISCLOSURE WITH _2
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | |
Schedule of supplemental disclosure with respect to cash flows | Year ended December 31, 2023 2022 $ $ Non-cash investing and financing activities: Consideration received for disposal of Lucky Strike project (Note 3(ii)) 4,657,482 — Shares issued pursuant to acquisition of exploration and evaluation assets 203,979 194,834 Right-of-use assets and liabilities 151,527 152,501 Property and equipment included in accounts payable and accrued liabilities — 306,400 Share issuance costs included in accounts payable and accrued liabilities 9,850 296,106 Cash paid for income taxes — — Cash paid for interest — — Cash received for interest 2,715,926 1,220,279 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of statutory rates to the loss before provision for income taxes | 2023 2022 $ $ (Loss) before income taxes (79,890,763) (89,989,659) Statutory tax rate 27.00 % 27.00 % Income tax (recovery) at statutory rate (21,571,000) (24,297,000) Flow-through shares and other non-deductible differences 16,107,000 17,468,000 Change in unrecognized deductible temporary differences 5,464,000 6,829,000 Income tax expense (recovery) — — |
Schedule of components of the deferred tax assets and liabilities | 2023 2022 $ $ Investments 16,166,000 10,291,000 Exploration and evaluation assets 20,296,000 14,290,000 Non-capital tax losses carryforward 28,328,000 18,416,000 Net capital losses carryforward 11,528,000 11,528,000 Capital assets 2,276,000 1,362,000 Reclamation provision 1,285,000 1,411,000 Other 7,688,000 7,096,000 Total 87,567,000 64,394,000 |
Schedule of non-capital losses expire | Expiry Date $ 2040 791,000 2041 7,661,000 2042 9,964,000 2043 9,912,000 28,328,000 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS | |
Schedule of company's financial instruments at fair value hierarchy | Level 1 Level 2 Level 3 Total $ $ $ $ Recurring measurements Carrying amount Fair value Investments 3,596,592 3,408,092 188,500 — 3,596,592 Secured notes 2,454,300 — 2,454,300 — 2,454,300 Level 1 Level 2 Level 3 Total $ $ $ $ Recurring measurements Carrying amount Fair value Investments 7,501,155 7,474,287 26,868 — 7,501,155 |
Schedule of changes in fair value measurements of financial instruments classified as Level 3 | Balance at Net Unrealized Balance at January 1 Additions Gains/(Losses) December 31 $ $ $ $ 2023 — — — — 2022 500,000 — (500,000) — |
NATURE OF OPERATIONS AND GOIN_2
NATURE OF OPERATIONS AND GOING CONCERN (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
NATURE OF OPERATIONS AND GOING CONCERN | |||
Accumulated deficit | $ 259,496,078 | $ 179,605,315 | |
Shareholders' equity | 65,503,020 | 83,473,900 | $ 122,654,601 |
Working Capital | 43,367,892 | ||
Negative cash flow from operating activities | $ 99,274,312 | $ 74,380,497 |
MATERIAL ACCOUNTING POLICY IN_4
MATERIAL ACCOUNTING POLICY INFORMATION - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Property & Buildings | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 10 years |
Property & Buildings | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 25 years |
Geological Equipment | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 2 years |
Geological Equipment | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 20 years |
Computer Equipment | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 2 years |
Computer Equipment | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 5 years |
Office Furniture and Equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 5 years |
Vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 3 years |
MATERIAL ACCOUNTING POLICY IN_5
MATERIAL ACCOUNTING POLICY INFORMATION - Additional Information (Details) | 12 Months Ended | ||
Jun. 30, 2023 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | |
Significant Accounting Policies [Line Items] | |||
Maximum discount rate from market value of securities escrowed or restricted sale or transfer | 10 | ||
Impairment loss recognised in profit or loss | $ 1,000,237 | ||
Kirkland Lake Discoveries Corp | |||
Significant Accounting Policies [Line Items] | |||
Impairment loss recognised in profit or loss | 1,000,237 | ||
Exploration and evaluation assets | |||
Significant Accounting Policies [Line Items] | |||
Impairment loss recognised in profit or loss | $ 8,000 | $ 0 | $ 0 |
EXPLORATION AND EVALUATION AS_3
EXPLORATION AND EVALUATION ASSETS (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Exploration and evaluation assets | ||
Exploration and evaluation assets at beginning of the year | $ 8,936,609 | $ 8,525,481 |
Additions | ||
Acquisition costs | 412,013 | 394,834 |
Claim staking and license renewal costs | 16,565 | 16,294 |
Disposals | ||
Disposal of exploration and evaluation assets | 264,000 | |
Impairment of exploration and evaluation assets | (8,000) | |
Exploration and evaluation assets at end of the year | 9,093,187 | 8,936,609 |
Cumulative exploration expense at beginning of the year | 125,270,350 | 53,849,804 |
Assays | 16,117,389 | 9,987,468 |
Drilling | 41,121,168 | 36,919,743 |
Environmental studies | 1,280,147 | 537,234 |
Geochemistry | 857,555 | 48,116 |
Geophysics | 814,877 | 2,071,926 |
Imagery and mapping | 654,137 | 95,893 |
Metallurgy | 950,855 | 65,644 |
Office and general | 856,046 | 676,880 |
Other | 590,575 | |
Permitting | 225,162 | |
Property taxes, mining leases and rent | 148,925 | 106,955 |
Petrography | 9,372 | |
Reclamation | 2,122,598 | 2,464,985 |
Salaries and consulting | 13,267,530 | 11,365,711 |
Seismic survey | 8,118,668 | |
Supplies and equipment | 4,439,059 | 5,311,357 |
Technical reports | 55,025 | 468,006 |
Travel and accommodations | 1,481,863 | 1,351,256 |
Trenching | 982,148 | |
Exploration cost recovery | (45,450) | (60,000) |
Cumulative exploration expense | 94,038,277 | 71,420,546 |
Cumulative exploration expense at end of the year | 219,308,627 | 125,270,350 |
Queensway | ||
Exploration and evaluation assets | ||
Exploration and evaluation assets at beginning of the year | 8,616,693 | 8,236,181 |
Additions | ||
Acquisition costs | 381,220 | 364,738 |
Claim staking and license renewal costs | 16,565 | 15,774 |
Disposals | ||
Exploration and evaluation assets at end of the year | 9,014,478 | 8,616,693 |
Cumulative exploration expense at beginning of the year | 121,302,318 | 51,439,957 |
Assays | 16,102,874 | 9,741,609 |
Drilling | 41,121,168 | 36,118,624 |
Environmental studies | 1,280,147 | 537,234 |
Geochemistry | 857,555 | 48,116 |
Geophysics | 814,877 | 1,894,010 |
Imagery and mapping | 644,205 | 95,893 |
Metallurgy | 950,855 | 65,644 |
Office and general | 855,902 | 672,019 |
Other | 590,575 | |
Permitting | 225,162 | |
Property taxes, mining leases and rent | 143,010 | 103,750 |
Petrography | 9,372 | |
Reclamation | 2,122,598 | 2,464,985 |
Salaries and consulting | 13,243,577 | 11,166,116 |
Seismic survey | 8,118,668 | |
Supplies and equipment | 4,438,579 | 5,204,988 |
Technical reports | 55,025 | 458,439 |
Travel and accommodations | 1,481,399 | 1,341,562 |
Trenching | 982,148 | |
Exploration cost recovery | (45,450) | (60,000) |
Cumulative exploration expense | 93,982,874 | 69,862,361 |
Cumulative exploration expense at end of the year | 215,285,192 | 121,302,318 |
Other | ||
Exploration and evaluation assets | ||
Exploration and evaluation assets at beginning of the year | 47,916 | 17,700 |
Additions | ||
Acquisition costs | 30,793 | 30,096 |
Claim staking and license renewal costs | 120 | |
Disposals | ||
Exploration and evaluation assets at end of the year | 78,709 | 47,916 |
Cumulative exploration expense at beginning of the year | 539,998 | 59,646 |
Assays | 14,515 | 12,545 |
Drilling | 352,056 | |
Imagery and mapping | 9,932 | |
Office and general | 50 | |
Salaries and consulting | 10,103 | 43,866 |
Supplies and equipment | 71,187 | |
Travel and accommodations | 309 | 648 |
Cumulative exploration expense | 34,859 | 480,352 |
Cumulative exploration expense at end of the year | 574,857 | 539,998 |
Ontario | ||
Exploration and evaluation assets | ||
Exploration and evaluation assets at beginning of the year | 272,000 | 271,600 |
Additions | ||
Claim staking and license renewal costs | 400 | |
Disposals | ||
Disposal of exploration and evaluation assets | 264,000 | |
Impairment of exploration and evaluation assets | (8,000) | |
Exploration and evaluation assets at end of the year | 272,000 | |
Cumulative exploration expense at beginning of the year | 3,428,034 | 2,350,201 |
Assays | 233,314 | |
Drilling | 449,063 | |
Geophysics | 177,916 | |
Office and general | 144 | 4,811 |
Property taxes, mining leases and rent | 5,915 | 3,205 |
Salaries and consulting | 13,850 | 155,729 |
Supplies and equipment | 480 | 35,182 |
Technical reports | 9,567 | |
Travel and accommodations | 155 | 9,046 |
Cumulative exploration expense | 20,544 | 1,077,833 |
Cumulative exploration expense at end of the year | $ 3,448,578 | $ 3,428,034 |
EXPLORATION AND EVALUATION AS_4
EXPLORATION AND EVALUATION ASSETS - Queensway Project - Gander, Newfoundland (Details) | 12 Months Ended | ||
Nov. 02, 2022 CAD ($) | Dec. 31, 2023 CAD ($) ha item claim | Dec. 31, 2022 ha item claim | |
Newfoundland | |||
EXPLORATION AND EVALUATION ASSETS | |||
Number of mineral licenses | 5 | ||
Payments of net smelter return royalties to the optionors | $ 250,000 | ||
Queensway | |||
EXPLORATION AND EVALUATION ASSETS | |||
Percentage of interest in mineral licenses | 100% | 100% | |
Number of mineral licenses | item | 96 | 94 | |
Number of claims | claim | 6,659 | 6,649 | |
Area of hectares of land | ha | 166,475 | 166,225 | |
Number of separate, fully executed option agreements | item | 9 | 10 | |
Payments of net smelter return royalties to the optionors | $ 1,000,000 | ||
Total cost of NSR'S that may be purchased at entity's discretion | $ 5,250,000 | ||
Queensway | Minimum | |||
EXPLORATION AND EVALUATION ASSETS | |||
Net smelter return ("NSR") royalties (as a percent) | 0.40% | ||
Percentage of NSR royalty | 0.40% | ||
Queensway | Maximum | |||
EXPLORATION AND EVALUATION ASSETS | |||
Net smelter return ("NSR") royalties (as a percent) | 2.50% | ||
Percentage of NSR royalty | 1.50% |
EXPLORATION AND EVALUATION AS_5
EXPLORATION AND EVALUATION ASSETS - Other Projects - Newfoundland (Details) | 12 Months Ended | ||
Nov. 02, 2022 CAD ($) shares | Dec. 31, 2023 item | Dec. 31, 2022 item | |
Queensway | |||
EXPLORATION AND EVALUATION ASSETS | |||
Percentage of interest in mineral licenses | 100% | 100% | |
Number of mineral licenses | item | 96 | 94 | |
Number of shares issued for acquiring mineral licenses | shares | 487,078 | ||
Aggregate cash payments | $ 2,350,000 | ||
Queensway | Common shares on or before November 2, 2023 | |||
EXPLORATION AND EVALUATION ASSETS | |||
Number of shares issued for acquiring mineral licenses | shares | 39,762 | ||
Aggregate cash payments | $ 200,000 | ||
Queensway | Common shares on or before November 2, 2024 | |||
EXPLORATION AND EVALUATION ASSETS | |||
Number of shares issued for acquiring mineral licenses | shares | 69,583 | ||
Aggregate cash payments | $ 250,000 | ||
Queensway | Common shares on or before November 2, 2025 | |||
EXPLORATION AND EVALUATION ASSETS | |||
Number of shares issued for acquiring mineral licenses | shares | 89,463 | ||
Aggregate cash payments | $ 300,000 | ||
Queensway | Common shares on or before November 2, 2026 | |||
EXPLORATION AND EVALUATION ASSETS | |||
Number of shares issued for acquiring mineral licenses | shares | 129,224 | ||
Aggregate cash payments | $ 600,000 | ||
Queensway | Common shares on or before November 2, 2027 | |||
EXPLORATION AND EVALUATION ASSETS | |||
Number of shares issued for acquiring mineral licenses | shares | 119,284 | ||
Aggregate cash payments | $ 800,000 | ||
Newfoundland | |||
EXPLORATION AND EVALUATION ASSETS | |||
Number of mineral licenses | 5 | ||
Number of shares issued for acquiring mineral licenses | shares | 39,762 | ||
Aggregate cash payments | $ 200,000 |
EXPLORATION AND EVALUATION AS_6
EXPLORATION AND EVALUATION ASSETS - Ontario Projects (Details) | 12 Months Ended | ||
Dec. 31, 2023 CAD ($) shares | Dec. 31, 2022 CAD ($) ha | May 25, 2023 shares | |
EXPLORATION AND EVALUATION ASSETS | |||
Gain on sale of exploration and evaluation assets | $ 4,217,935 | $ 12,161 | |
Fair value of shares received as non-cash consideration on sale of project | 4,657,482 | ||
Professional fees | 1,652,312 | $ 1,629,038 | |
Disposal of exploration and evaluation assets | (264,000) | ||
Impairment of exploration and evaluation assets | 8,000 | ||
Kirkland Lake Discoveries Corp | |||
EXPLORATION AND EVALUATION ASSETS | |||
Total non-cash consideration (in shares) | shares | 28,612,500 | ||
Consideration in net smelter return royalty (as a percent) | 1% | ||
Ontario | |||
EXPLORATION AND EVALUATION ASSETS | |||
Disposal of exploration and evaluation assets | (264,000) | ||
Impairment of exploration and evaluation assets | 8,000 | ||
Lucky Strike project in Kirkland Lake, Ontario | |||
EXPLORATION AND EVALUATION ASSETS | |||
Gain on sale of exploration and evaluation assets | 4,217,935 | ||
Professional fees | 175,547 | ||
Disposal of exploration and evaluation assets | 264,000 | ||
Percentage of interest in mineral licenses | 100% | ||
Area of hectares of land | ha | 11,684 | ||
Impairment of exploration and evaluation assets | 8,000 | ||
Lucky Strike project in Kirkland Lake, Ontario | Kirkland Lake Discoveries Corp | |||
EXPLORATION AND EVALUATION ASSETS | |||
Fair value of shares received as non-cash consideration on sale of project | $ 4,657,482 | ||
Total non-cash consideration (in shares) | shares | 28,612,500 | ||
Consideration in net smelter return royalty (as a percent) | 1% | ||
Lucky Strike project in Kirkland Lake, Ontario | Minimum | |||
EXPLORATION AND EVALUATION ASSETS | |||
Net smelter return ("NSR") royalties (as a percent) | 1% | ||
Lucky Strike project in Kirkland Lake, Ontario | Maximum | |||
EXPLORATION AND EVALUATION ASSETS | |||
Net smelter return ("NSR") royalties (as a percent) | 2% |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | $ 7,267,014 | |
Balance at the end of the year | 7,638,608 | $ 7,267,014 |
Accumulated Depreciation | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | (1,376,886) | (599,780) |
Depreciation | 794,144 | 777,106 |
Disposals | 23,184 | |
Balance at the end of the year | (2,147,846) | (1,376,886) |
Carrying Amount | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 7,267,014 | |
Balance at the end of the year | 7,638,608 | 7,267,014 |
Cost | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 8,643,900 | 3,514,239 |
Additions | 1,180,750 | 5,129,661 |
Disposals | (38,196) | |
Balance at the end of the year | 9,786,454 | 8,643,900 |
Property and Buildings | Accumulated Depreciation | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | (141,526) | (53,654) |
Depreciation | 271,505 | 87,872 |
Balance at the end of the year | (413,031) | (141,526) |
Property and Buildings | Carrying Amount | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 6,051,386 | |
Balance at the end of the year | 5,952,225 | 6,051,386 |
Property and Buildings | Cost | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 6,192,912 | 2,127,485 |
Additions | 172,344 | 4,065,427 |
Balance at the end of the year | 6,365,256 | 6,192,912 |
Computer Equipment | Accumulated Depreciation | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | (43,789) | (17,107) |
Depreciation | 42,327 | 26,682 |
Disposals | 567 | |
Balance at the end of the year | (85,549) | (43,789) |
Computer Equipment | Carrying Amount | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 49,709 | |
Balance at the end of the year | 50,943 | 49,709 |
Computer Equipment | Cost | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 93,498 | 32,392 |
Additions | 46,395 | 61,106 |
Disposals | (3,401) | |
Balance at the end of the year | 136,492 | 93,498 |
Geological Equipment and Other Facilities | Accumulated Depreciation | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | (787,598) | (333,474) |
Depreciation | 228,621 | 454,124 |
Balance at the end of the year | (1,016,219) | (787,598) |
Geological Equipment and Other Facilities | Carrying Amount | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 759,856 | |
Balance at the end of the year | 1,294,811 | 759,856 |
Geological Equipment and Other Facilities | Cost | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 1,547,454 | 823,122 |
Additions | 763,576 | 724,332 |
Balance at the end of the year | 2,311,030 | 1,547,454 |
Vehicles | Accumulated Depreciation | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | (403,561) | (195,545) |
Depreciation | 244,312 | 208,016 |
Disposals | 22,617 | |
Balance at the end of the year | (625,256) | (403,561) |
Vehicles | Carrying Amount | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 376,327 | |
Balance at the end of the year | 310,067 | 376,327 |
Vehicles | Cost | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 779,888 | 531,240 |
Additions | 190,230 | 248,648 |
Disposals | (34,795) | |
Balance at the end of the year | 935,323 | 779,888 |
Office Furniture and Equipment | Accumulated Depreciation | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | (412) | |
Depreciation | 7,379 | 412 |
Balance at the end of the year | (7,791) | (412) |
Office Furniture and Equipment | Carrying Amount | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 29,736 | |
Balance at the end of the year | 30,562 | 29,736 |
Office Furniture and Equipment | Cost | ||
Reconciliation of changes in property, plant and equipment | ||
Balance at the beginning of the year | 30,148 | |
Additions | 8,205 | 30,148 |
Balance at the end of the year | $ 38,353 | $ 30,148 |
INVESTMENTS (Details)
INVESTMENTS (Details) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
INVESTMENTS | |||
Equities held | $ 3,408,092 | $ 7,474,287 | |
Warrants held | 188,500 | 26,868 | |
Total Investments | $ 3,596,592 | $ 7,501,155 | $ 31,942,458 |
INVESTMENTS - Equities (Details
INVESTMENTS - Equities (Details) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
INVESTMENTS | ||
Equities held, Cost | $ 17,812,704 | $ 17,812,704 |
Equities held, Fair Value | $ 3,408,092 | $ 7,474,287 |
Exploits Discovery Corp. | ||
INVESTMENTS | ||
Equities held, Quantity | 13,229,466 | 13,229,466 |
Equities held, Cost | $ 8,462,704 | $ 8,462,704 |
Equities held, Fair Value | $ 1,587,536 | $ 3,770,398 |
Labrador Gold Corp. | ||
INVESTMENTS | ||
Equities held, Quantity | 12,555,556 | 12,555,556 |
Equities held, Cost | $ 8,850,000 | $ 8,850,000 |
Equities held, Fair Value | $ 1,820,556 | $ 3,703,889 |
Long Range Exploration Corporation | ||
INVESTMENTS | ||
Equities held, Quantity | 5,000,000 | 5,000,000 |
Equities held, Cost | $ 500,000 | $ 500,000 |
INVESTMENTS - Warrants (Details
INVESTMENTS - Warrants (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INVESTMENTS | ||
Warrants held, Cost | $ 174,500 | |
Warrant or Right Held, At Fair Value | $ 188,500 | $ 26,868 |
Warrants Exercise Price Per Share | $ 0.07 | |
Exploits Discovery Corp. | ||
INVESTMENTS | ||
Warrants held, Quantity | 6,666,667 | |
Warrant or Right Held, At Fair Value | $ 10,331 | |
Labrador Gold Corp. | ||
INVESTMENTS | ||
Warrants held, Quantity | 6,277,778 | |
Warrant or Right Held, At Fair Value | $ 16,537 | |
Maritime Resources Corp | ||
INVESTMENTS | ||
Warrants held, Quantity | 15,324,571 | |
Warrants held, Cost | $ 174,500 | |
Warrant or Right Held, At Fair Value | $ 188,500 |
INVESTMENTS - Analysis of inves
INVESTMENTS - Analysis of investments including related gains and losses (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INVESTMENTS | ||
Investments, beginning of year | $ 7,501,155 | $ 31,942,458 |
Purchases of investments | 174,500 | |
Proceeds on disposal of investments | 4,827,266 | |
Realized losses on investments | (4,675,084) | |
Unrealized losses on investments | (4,079,063) | (14,938,953) |
Investments, end of year | $ 3,596,592 | $ 7,501,155 |
PREPAID EXPENSES AND DEPOSITS_2
PREPAID EXPENSES AND DEPOSITS (Details) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
PREPAID EXPENSES AND DEPOSITS | ||
Prepaid expenses | $ 1,296,217 | $ 1,218,184 |
Mineral license deposits | 222,940 | 227,527 |
Prepaid expenses and deposits, end of year | $ 1,519,157 | $ 1,445,711 |
INVESTMENT IN KIRKLAND LAKE D_3
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP (Details) - Kirkland Lake Discoveries Corp | 7 Months Ended | |
Dec. 31, 2023 director shares | May 25, 2023 shares | |
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP | ||
Total non-cash consideration (in shares) | 28,612,500 | |
Consideration in net smelter return royalty (as a percent) | 1% | |
The Company's ownership interest | 32.29% | |
Number of additional directors nominated as board of directors | director | 2 | |
Percentage of investment | 100% | |
Lucky strike project | ||
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP | ||
Total non-cash consideration (in shares) | 28,612,500 | |
Consideration in net smelter return royalty (as a percent) | 1% |
INVESTMENT IN KIRKLAND LAKE D_4
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP - Summarised financial information (Details) - CAD ($) | 7 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | May 25, 2023 | |
Summarised Statement of Financial Position | |||||
Current assets | $ 62,375,526 | $ 62,375,526 | $ 62,375,526 | $ 94,332,730 | |
Non-current assets | 22,203,967 | 22,203,967 | 22,203,967 | 16,354,782 | |
Current liabilities | (19,007,634) | (19,007,634) | (19,007,634) | (27,144,773) | |
Non-current liabilities | 68,839 | 68,839 | 68,839 | 68,839 | |
Share of Kirkland Lake Discoveries Corp.'s net assets | 2,861,250 | 2,861,250 | 2,861,250 | ||
Summarised Statement of Loss and Comprehensive Loss | |||||
Net loss and comprehensive loss for the period | (79,890,763) | $ (89,989,659) | |||
Share of loss from operations of associate during the period | (795,995) | ||||
Kirkland Lake Discoveries Corp | |||||
Summarised Statement of Financial Position | |||||
Current assets | 4,601,136 | 4,601,136 | 4,601,136 | ||
Non-current assets | 4,583,769 | 4,583,769 | 4,583,769 | ||
Current liabilities | (322,453) | (322,453) | (322,453) | ||
Net Assets | $ 8,862,452 | 8,862,452 | 8,862,452 | ||
The Company's ownership interest | 32.29% | ||||
Share of Kirkland Lake Discoveries Corp.'s net assets | $ 2,861,250 | 2,861,250 | 2,861,250 | $ 4,657,482 | |
Summarised Statement of Loss and Comprehensive Loss | |||||
Net loss and comprehensive loss for the period | (2,465,518) | ||||
Share of loss from operations of associate during the period | (795,995) | (795,995) | |||
Estimated fair value based on the market price of the shares | 2,861,250 | 2,861,250 | $ 2,861,250 | ||
Impairment of equity investment | $ (1,000,237) | $ (1,000,237) |
INVESTMENT IN KIRKLAND LAKE D_5
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP - Movement in investment (Details) | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2023 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 CAD ($) | |
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP | |||
Share of loss from operations of associate during the period | $ (795,995) | ||
Net Carrying amount - December 31, 2023 | $ 2,861,250 | $ 2,861,250 | 2,861,250 |
Kirkland Lake Discoveries Corp | |||
INVESTMENT IN KIRKLAND LAKE DISCOVERIES CORP | |||
Net Carrying amount - May 25, 2023 | 4,657,482 | ||
Share of loss from operations of associate during the period | (795,995) | (795,995) | |
Impairment of equity investment | (1,000,237) | (1,000,237) | |
Net Carrying amount - December 31, 2023 | 2,861,250 | 2,861,250 | 2,861,250 |
Estimated fair value based on the market price of the shares | $ 2,861,250 | $ 2,861,250 | $ 2,861,250 |
SECURED NOTES (Details)
SECURED NOTES (Details) | Dec. 31, 2023 CAD ($) | Aug. 14, 2023 CAD ($) shares | Aug. 14, 2023 USD ($) shares | Dec. 31, 2022 CAD ($) | Aug. 14, 2014 $ / NotesSeries shares |
SECURED NOTES | |||||
Warrants held, Fair Value | $ | $ 188,500 | $ 26,868 | |||
Maritime Resources Corp | |||||
SECURED NOTES | |||||
Notes subscribed | shares | 2,000 | ||||
Notes face value | $ / NotesSeries | 1,000 | ||||
Original issue discount | 2% | 2% | |||
Gross investment | $ 2,638,500 | $ 1,960,000 | |||
Spread on interest at a rate equal to the Secured Overnight Financing Rate | 6% | 6% | |||
Percentage of noteholders approval for notes maturity extension | 65% | 65% | |||
Extension fees | 3% | 3% | |||
Spread on increase interest rate at a rate equal to the Secured Overnight Financing Rate | 9% | 9% | |||
Percentage of noteholders approval for option to satisfy interest payments under the Notes by issuing shares | 65% | 65% | |||
Interest shares issued by note issuer as deemed value of market price | 90% | 90% | |||
Warrants coverage percentage | 40% | 40% | |||
Number of warrants received | shares | 15,324,571 | 15,324,571 | |||
Warrants held, Fair Value | $ | $ 188,500 | ||||
Notes are redeemed on or prior to August 14, 2024 | Maritime Resources Corp | |||||
SECURED NOTES | |||||
Notes redemption percentage | 113% | 113% | |||
Notes redeemed after the date that is 12 months after the issuance date | Maritime Resources Corp | |||||
SECURED NOTES | |||||
Notes redemption percentage | 100% | 100% | |||
Secured notes | |||||
SECURED NOTES | |||||
Gross investment | $ 2,638,500 | $ 1,960,000 | |||
Fair value of notes | 2,464,000 | 1,830,300 | |||
Common share purchase warrants | |||||
SECURED NOTES | |||||
Fair value of notes | $ 174,500 | $ 129,700 |
SECURED NOTES- Movement in the
SECURED NOTES- Movement in the Company's secured notes (Details) - CAD ($) | 5 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Dec. 31, 2023 | |
SECURED NOTES | ||
Purchase of secured notes | $ 2,464,000 | |
Revaluation of secured notes | 33,599 | |
Secured notes, end of year | $ 2,454,300 | 2,454,300 |
Secured notes | ||
SECURED NOTES | ||
Purchase of secured notes | 2,464,000 | |
Revaluation of secured notes | 33,599 | |
Foreign exchange loss | (43,299) | |
Secured notes, end of year | $ 2,454,300 | $ 2,454,300 |
SECURED NOTES- Narratives (Deta
SECURED NOTES- Narratives (Details) | 12 Months Ended |
Dec. 31, 2023 CAD ($) | |
SECURED NOTES | |
Interest receivable on the secured notes | $ 75,322 |
Secured notes | |
SECURED NOTES | |
Interest income on the secured notes | 114,434 |
Interest receivable on the secured notes | $ 75,322 |
FLOW-THROUGH SHARE PREMIUM (Det
FLOW-THROUGH SHARE PREMIUM (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
FLOW-THROUGH SHARE PREMIUM | ||
Flow-through share premium at beginning of the year | $ 20,063,350 | $ 22,729,196 |
Liability incurred on flow-through shares issued | 15,295,500 | 14,500,000 |
Settlement of flow-through share premium on expenditures incurred | (22,932,528) | (17,165,846) |
Flow-through share premium at end of the year | 12,426,322 | 20,063,350 |
Issued August 24, 2021 | ||
FLOW-THROUGH SHARE PREMIUM | ||
Flow-through share premium at beginning of the year | 10,129,196 | |
Settlement of flow-through share premium on expenditures incurred | (10,129,196) | |
Issued November 25, 2021 | ||
FLOW-THROUGH SHARE PREMIUM | ||
Flow-through share premium at beginning of the year | 5,563,350 | 12,600,000 |
Settlement of flow-through share premium on expenditures incurred | (5,563,350) | (7,036,650) |
Flow-through share premium at end of the year | 5,563,350 | |
Issued December 14, 2022 | ||
FLOW-THROUGH SHARE PREMIUM | ||
Flow-through share premium at beginning of the year | 14,500,000 | |
Liability incurred on flow-through shares issued | 14,500,000 | |
Settlement of flow-through share premium on expenditures incurred | (14,500,000) | |
Flow-through share premium at end of the year | $ 14,500,000 | |
Issued November 6, 2023 | ||
FLOW-THROUGH SHARE PREMIUM | ||
Liability incurred on flow-through shares issued | 15,295,500 | |
Settlement of flow-through share premium on expenditures incurred | (2,869,178) | |
Flow-through share premium at end of the year | $ 12,426,322 |
FLOW THROUGH SHARE PREMIUM - Ad
FLOW THROUGH SHARE PREMIUM - Additional information (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
FLOW-THROUGH SHARE PREMIUM | |||
Tax deduction | 100% | ||
Expenditure incurred in qualifying CEE | $ 81,699,542 | $ 66,727,234 | |
Amortization of flow-through liabilities | 22,932,528 | 17,165,846 | |
Flow-through share premium | 12,426,322 | $ 20,063,350 | $ 22,729,196 |
Part XII.6 tax | 584,120 | ||
Less than one year | |||
FLOW-THROUGH SHARE PREMIUM | |||
Spend for satisfy remaining flow-through obligations | 45,500,423 | ||
Flow-through share premium | 12,426,322 | ||
Part XII.6 tax | $ 584,120 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||
Accounts payable and accrued liabilities | $ 5,207,323 | $ 5,588,742 |
Reclamation provision | 1,285,031 | 1,411,293 |
Accounts payable and accrued liabilities, end of year | $ 6,492,354 | $ 7,000,035 |
ACCOUNTS PAYABLE AND ACCRUED _4
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Reclamation provision (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||
Balance, beginning of year | $ 1,411,293 | |
Additions to reclamation provision | 1,327,278 | $ 1,411,293 |
Change in estimate | 2,687 | |
Reclamation costs incurred | (1,456,227) | |
Balance, end of year | $ 1,285,031 | $ 1,411,293 |
ACCOUNTS PAYABLE AND ACCRUED _5
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Additional information (Details) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||
Provision for reclamation costs undiscounted cash flows | $ 1,285,031 | $ 1,411,293 |
SHARE CAPITAL AND RESERVES (Det
SHARE CAPITAL AND RESERVES (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||
Nov. 06, 2023 CAD ($) $ / shares shares | Nov. 02, 2023 CAD ($) shares | Dec. 14, 2022 CAD ($) $ / shares shares | Nov. 16, 2022 CAD ($) shares | Aug. 31, 2022 CAD ($) | Dec. 31, 2023 CAD ($) shares | Dec. 31, 2023 CAD ($) shares | Dec. 31, 2023 CAD ($) $ / shares shares | Dec. 31, 2023 CAD ($) Options shares | Dec. 31, 2022 CAD ($) shares | Dec. 31, 2022 shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2022 shares | Dec. 31, 2022 Options shares | |
Disclosure of classes of share capital [line items] | ||||||||||||||
Gross proceeds from issuance of shares | $ 50,000,000 | $ 78,986,588 | $ 52,549,677 | |||||||||||
Maximum aggregate gross proceeds | $ 100,000,000 | |||||||||||||
Price per share | $ / shares | $ 8 | |||||||||||||
Net proceeds | 22,440,215 | 2,489,754 | ||||||||||||
Professional fees | 1,652,312 | 1,629,038 | ||||||||||||
Gross proceeds on exercise of warrants | 55,140 | |||||||||||||
Weighted average exercise price of stock option exercised | $ / shares | $ 0.74 | $ 1.76 | ||||||||||||
Gross proceeds from stock options exercised | 131,630 | 7,649,906 | ||||||||||||
Warrants exercised | 39,960 | 39,960 | ||||||||||||
Weighted average exercise price of warrants exercised | $ / shares | 1.38 | |||||||||||||
Share issuance costs paid | $ 3,517,377 | $ 3,333,880 | ||||||||||||
Weighted average exercise price of stock option exercised | $ / shares | $ 0.74 | $ 1.76 | ||||||||||||
Number of stock options exercised | 178,500 | 178,500 | 4,341,875 | 4,341,875 | ||||||||||
Exploration and evaluation assets | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
common shares issued | shares | 39,762 | 6,250,000 | 39,762 | |||||||||||
Value of shares issued during the period | $ 203,979 | $ 194,834 | ||||||||||||
Prospectus supplement | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares issued | shares | 3,552,224 | 3,552,224 | 3,552,224 | 3,552,224 | 500,229 | 500,229 | 500,229 | 500,229 | 500,229 | |||||
Gross proceeds from issuance of shares | $ 22,980,338 | $ 2,549,677 | ||||||||||||
ATM program | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares issued | shares | 3,552,224 | 3,552,224 | 3,552,224 | 3,552,224 | 500,229 | 500,229 | 500,229 | 500,229 | 500,229 | |||||
Gross proceeds from issuance of shares | $ 22,980,338 | $ 2,549,677 | ||||||||||||
Total proceeds from issuance of shares | 25,530,015 | $ 25,530,015 | $ 25,530,015 | $ 25,530,015 | ||||||||||
Price per share | $ / shares | $ 6.47 | $ 5.10 | ||||||||||||
Aggregate commission | $ 540,123 | $ 59,923 | ||||||||||||
Bought-deal prospectus offering | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Gross proceeds from issuance of shares | $ 56,006,250 | |||||||||||||
Price per share | $ / shares | $ 7.25 | |||||||||||||
Shares issued (in shares) | shares | 7,725,000 | |||||||||||||
Amount paid to underwriters | $ 2,357,908 | $ 2,104,250 | ||||||||||||
Premium received on flow-through shares issued | 15,295,500 | 14,500,000 | ||||||||||||
Share issuance costs paid | $ 2,977,254 | $ 2,717,627 |
SHARE CAPITAL AND RESERVES - Sh
SHARE CAPITAL AND RESERVES - Share purchase option compensation plan (Details) - Share purchase option plan | 12 Months Ended |
Dec. 31, 2023 | |
SHARE CAPITAL AND RESERVES | |
Percentage of maximum number of eligible shares in aggregate | 10% |
Percentage of maximum number of eligible shares in with respect to any one optionee | 5% |
Hold period of option granted | 4 months |
Exercisable term | 10 years |
SHARE CAPITAL AND RESERVES - Th
SHARE CAPITAL AND RESERVES - The continuity of share purchase options (Details) | 12 Months Ended | |||||||||
Jan. 01, 2024 Options $ / shares | Dec. 31, 2023 $ / shares | Dec. 31, 2023 shares $ / shares | Dec. 31, 2023 $ / shares | Dec. 31, 2023 Options $ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2022 Options $ / shares | Dec. 31, 2021 Options $ / shares | |
SHARE CAPITAL AND RESERVES | ||||||||||
Option outstanding at the beginning | 12,279,125 | 12,860,500 | 14,595,000 | |||||||
Option granted | 2,647,500 | |||||||||
Option exercised | (178,500) | (178,500) | (4,341,875) | (4,341,875) | ||||||
Option cancelled/ forfeited/ expired | (402,875) | (40,125) | ||||||||
Option outstanding at the end | 12,279,125 | 12,860,500 | 14,595,000 | |||||||
Option exercisable at the end | 11,862,875 | 12,041,625 | ||||||||
Weighted average exercise price, option outstanding at the beginning | $ / shares | $ 3.97 | $ 4.01 | $ 3.01 | |||||||
Weighted average exercise price, option granted | $ / shares | 5.72 | |||||||||
Weighted average exercise price of stock option exercised | $ / shares | 0.74 | 1.76 | ||||||||
Weighted average exercise price, option cancelled/ forfeited/ expired | $ / shares | 6.55 | 7.12 | ||||||||
Weighted average exercise price, option outstanding at the end | $ / shares | 3.97 | 4.01 | $ 3.01 | |||||||
Weighted average exercise price, option exercisable at the end | $ / shares | 3.89 | 3.85 | ||||||||
Weighted average contractual remaining life (years) | 2 years 3 months | 3 years 2 months 26 days | 3 years 8 months 15 days | |||||||
Weighted average contractual remaining life, option granted | 4 years 11 months 4 days | |||||||||
Weighted average contractual remaining life, option exercisable at the end | 2 years 2 months 12 days | 3 years 1 month 24 days | ||||||||
Exercise price of $0.4 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | $ 0.40 | $ 0.40 | 0.40 | $ 0.40 | $ 0.40 | 0.40 | $ 0.40 | $ 0.40 | ||
Option outstanding at the beginning | 150,000 | 150,000 | ||||||||
Option exercised | (150,000) | |||||||||
Option outstanding at the end | 150,000 | 150,000 | ||||||||
Option exercisable at the end | 150,000 | |||||||||
Exercise price of $0.5 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 0.50 | 0.50 | 0.50 | $ 0.50 | 0.50 | 0.50 | 0.50 | $ 0.50 | ||
Option outstanding at the beginning | 1,725,000 | 1,725,000 | 1,925,000 | |||||||
Option exercised | (200,000) | |||||||||
Option outstanding at the end | 1,725,000 | 1,725,000 | 1,925,000 | |||||||
Option exercisable at the end | 1,725,000 | 1,725,000 | ||||||||
Exercise price of $1 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 1 | 1 | 1 | $ 1 | 1 | 1 | 1 | $ 1 | ||
Option outstanding at the beginning | 100,000 | 100,000 | 1,450,000 | |||||||
Option exercised | (1,350,000) | |||||||||
Option outstanding at the end | 100,000 | 100,000 | 1,450,000 | |||||||
Option exercisable at the end | 100,000 | 100,000 | ||||||||
Exercise price of $1.075 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 1.075 | 1.075 | 1.075 | $ 1.075 | 1.075 | 1.075 | 1.075 | $ 1.075 | ||
Option outstanding at the beginning | 75,000 | 75,000 | 200,000 | |||||||
Option exercised | (125,000) | |||||||||
Option outstanding at the end | 75,000 | 75,000 | 200,000 | |||||||
Option exercisable at the end | 75,000 | 75,000 | ||||||||
Exercise price of $1.4 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 1.40 | 1.40 | 1.40 | $ 1.40 | 1.40 | 1.40 | 1.40 | $ 1.40 | ||
Option outstanding at the beginning | 1,125,000 | 1,125,000 | 2,900,000 | |||||||
Option exercised | (1,775,000) | |||||||||
Option outstanding at the end | 1,125,000 | 1,125,000 | 2,900,000 | |||||||
Option exercisable at the end | 1,125,000 | 1,125,000 | ||||||||
Exercise price of $2.07 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 2.07 | 2.07 | 2.07 | $ 2.07 | 2.07 | 2.07 | 2.07 | $ 2.07 | ||
Option outstanding at the beginning | 50,000 | 75,000 | 115,000 | |||||||
Option exercised | (25,000) | (40,000) | ||||||||
Option outstanding at the end | 50,000 | 75,000 | 115,000 | |||||||
Option exercisable at the end | 50,000 | 75,000 | ||||||||
Exercise price of $2.15 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 2.15 | 2.15 | 2.15 | $ 2.15 | 2.15 | 2.15 | 2.15 | $ 2.15 | ||
Option outstanding at the beginning | 25,000 | 25,000 | 25,000 | |||||||
Option outstanding at the end | 25,000 | 25,000 | 25,000 | |||||||
Option exercisable at the end | 25,000 | 25,000 | ||||||||
Exercise price of $4.1 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 4.10 | 4.10 | 4.10 | $ 4.10 | 4.10 | 4.10 | 4.10 | $ 4.10 | ||
Option outstanding at the beginning | 5,305,000 | 5,305,000 | 6,155,000 | |||||||
Option exercised | (850,000) | |||||||||
Option outstanding at the end | 5,305,000 | 5,305,000 | 6,155,000 | |||||||
Option exercisable at the end | 5,305,000 | 5,305,000 | ||||||||
Exercise price of $6.79 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 6.79 | 6.79 | 6.79 | $ 6.79 | 6.79 | 6.79 | 6.79 | $ 6.79 | ||
Option outstanding at the beginning | 962,875 | 1,258,625 | 1,294,250 | |||||||
Option exercised | (1,875) | |||||||||
Option cancelled/ forfeited/ expired | (295,750) | (33,750) | ||||||||
Option outstanding at the end | 962,875 | 1,258,625 | 1,294,250 | |||||||
Option exercisable at the end | 940,000 | 1,168,625 | ||||||||
Exercise price of $8.62 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 8.62 | 8.62 | 8.62 | $ 8.62 | 8.62 | 8.62 | 8.62 | $ 8.62 | ||
Option outstanding at the beginning | 200,000 | 200,000 | 200,000 | |||||||
Option outstanding at the end | 200,000 | 200,000 | 200,000 | |||||||
Option exercisable at the end | 200,000 | 200,000 | ||||||||
Exercise price of $8.7 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 8.70 | 8.70 | 8.70 | $ 8.70 | 8.70 | 8.70 | 8.70 | $ 8.70 | ||
Option outstanding at the beginning | 125,000 | 125,000 | 125,000 | |||||||
Option outstanding at the end | 125,000 | 125,000 | 125,000 | |||||||
Option exercisable at the end | 87,500 | 50,000 | ||||||||
Exercise price of $8.04 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 8.04 | 8.04 | 8.04 | $ 8.04 | 8.04 | 8.04 | 8.04 | $ 8.04 | ||
Option outstanding at the beginning | 47,500 | 55,000 | 55,750 | |||||||
Option cancelled/ forfeited/ expired | (7,500) | (750) | ||||||||
Option outstanding at the end | 47,500 | 55,000 | 55,750 | |||||||
Option exercisable at the end | 33,250 | 22,000 | ||||||||
Exercise Price of $8.98 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 8.98 | 8.98 | 8.98 | $ 8.98 | 8.98 | 8.98 | 8.98 | $ 8.98 | ||
Option outstanding at the beginning | 22,500 | 24,375 | ||||||||
Option granted | 30,000 | |||||||||
Option cancelled/ forfeited/ expired | (1,875) | (5,625) | ||||||||
Option outstanding at the end | 22,500 | 24,375 | ||||||||
Option exercisable at the end | 12,375 | 7,500 | ||||||||
Exercise Price of $5.75 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 5.75 | 5.75 | 5.75 | $ 5.75 | 5.75 | 5.75 | 5.75 | $ 5.75 | ||
Option outstanding at the beginning | 340,000 | 340,000 | ||||||||
Option granted | 340,000 | |||||||||
Option outstanding at the end | 340,000 | 340,000 | ||||||||
Option exercisable at the end | 226,000 | 169,000 | ||||||||
Exercise Price of $5 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | 5 | 5 | 5 | $ 5 | 5 | 5 | 5 | $ 5 | ||
Option outstanding at the beginning | 20,000 | 20,000 | ||||||||
Option granted | 20,000 | |||||||||
Option outstanding at the end | 20,000 | 20,000 | ||||||||
Option exercisable at the end | 20,000 | 10,000 | ||||||||
Exercise Price of $5.68 | ||||||||||
SHARE CAPITAL AND RESERVES | ||||||||||
Exercise price | $ / shares | $ 5.68 | $ 5.68 | $ 5.68 | $ 5.68 | $ 5.68 | $ 5.68 | $ 5.68 | $ 5.68 | ||
Option outstanding at the beginning | 2,156,250 | 2,257,500 | ||||||||
Option granted | 2,257,500 | |||||||||
Option exercised | (3,500) | |||||||||
Option cancelled/ forfeited/ expired | (97,750) | |||||||||
Option outstanding at the end | 2,156,250 | 2,257,500 | ||||||||
Option exercisable at the end | 1,938,750 | 1,834,500 |
SHARE CAPITAL AND RESERVES - Bl
SHARE CAPITAL AND RESERVES - Black-Scholes option pricing model (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
SHARE CAPITAL AND RESERVES | |
Risk-free interest rate | 3.21% |
Expected option life in years | 5 |
Expected share price volatility | 88.06% |
Grant date share price | $ 5.39 |
Expected dividend yield | 0% |
SHARE CAPITAL AND RESERVES - _2
SHARE CAPITAL AND RESERVES - The continuity of warrants (Details) | 12 Months Ended | |||||
Dec. 31, 2022 Options | Dec. 31, 2022 $ / shares | Dec. 31, 2022 EquityInstruments | Dec. 31, 2022 shares | Dec. 31, 2021 EquityInstruments shares $ / shares | Dec. 31, 2023 $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Warrants outstanding at the beginning | shares | 49,486 | |||||
Warrants exercised | (39,960) | (39,960) | ||||
Warrants cancelled/ expired | shares | (9,526) | |||||
Warrants outstanding at the end | shares | 49,486 | |||||
Weighted average exercise price, warrants outstanding at the beginning | $ / shares | $ 1.40 | |||||
Weighted average exercise price, warrants exercised | $ / shares | $ 1.38 | |||||
Weighted average exercise price, warrants Cancelled | $ / shares | $ 1.48 | |||||
Weighted average exercise price, warrants outstanding at the end | $ / shares | $ 1.40 | |||||
Weighted average contractual remaining life | 4 months 17 days | |||||
Exercise price of $1.30 with May 12, 2022 expiry date | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Warrants, exercise Price | $ / shares | $ 1.30 | |||||
Warrants outstanding at the beginning | 25,154 | |||||
Warrants exercised | (24,000) | |||||
Warrants cancelled/ expired | (1,154) | |||||
Warrants outstanding at the end | 25,154 | |||||
Exercise price of $1.50 with May 13, 2022 expiry date | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Warrants, exercise Price | $ / shares | 1.50 | |||||
Warrants outstanding at the beginning | 8,372 | |||||
Warrants cancelled/ expired | (8,372) | |||||
Warrants outstanding at the end | 8,372 | |||||
Exercise price of $1.50 with June 4, 2022 expiry date | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Warrants, exercise Price | $ / shares | $ 1.50 | |||||
Warrants outstanding at the beginning | 15,960 | |||||
Warrants exercised | (15,960) | |||||
Warrants outstanding at the end | 15,960 |
SHARE CAPITAL AND RESERVES- Wei
SHARE CAPITAL AND RESERVES- Weighted average fair value purchase options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SHARE CAPITAL AND RESERVES | |||
Weighted average exercise price, option outstanding at the end | $ 3.97 | $ 4.01 | $ 3.01 |
Warrants | |||
SHARE CAPITAL AND RESERVES | |||
Weighted average fair value of share purchase options exercised | 0.38 | ||
Weighted average exercise price, option outstanding at the end | 8.39 | ||
options | |||
SHARE CAPITAL AND RESERVES | |||
Weighted average fair value of share purchase options granted | 3.72 | ||
Weighted average fair value of share purchase options exercised | 0.58 | 1.27 | |
Weighted average exercise price, option outstanding at the end | $ 5.75 | $ 6.36 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of transactions between related parties [line items] | ||
Contractual commitments with related parties | $ 0 | |
EarthLabs Inc. | ||
Disclosure of transactions between related parties [line items] | ||
Administration, exploration and evaluation | 18,000 | $ 266,737 |
DigiGeoData Inc. | ||
Disclosure of transactions between related parties [line items] | ||
Corporate development and investor relations | $ 104,637 | $ 1,800 |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS - Key management personnel compensation (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of transactions between related parties [line items] | ||
Salaries and Consulting | $ 1,583,280 | $ 1,354,110 |
Share-based compensation | 235,560 | 5,886,185 |
Bonus | 455,760 | 555,000 |
Key management personnel compensation | 2,274,600 | 7,795,295 |
Amount payable, key management personnel compensation | 18,888 | 276,016 |
Executive Chairman and Chief Executive Officer | ||
Disclosure of transactions between related parties [line items] | ||
Salaries and Consulting | 388,800 | 360,000 |
Share-based compensation | 1,844,584 | |
Bonus | 129,600 | 180,000 |
Key management personnel compensation | 518,400 | 2,384,584 |
Former Chief Executive Officer | ||
Disclosure of transactions between related parties [line items] | ||
Salaries and Consulting | 105,000 | |
Key management personnel compensation | 105,000 | |
President | ||
Disclosure of transactions between related parties [line items] | ||
Salaries and Consulting | 272,160 | 252,000 |
Share-based compensation | 1,291,209 | |
Bonus | 90,720 | 126,000 |
Key management personnel compensation | 362,880 | 1,669,209 |
Chief Financial Officer | ||
Disclosure of transactions between related parties [line items] | ||
Salaries and Consulting | 116,640 | 108,000 |
Share-based compensation | 507,261 | |
Bonus | 38,880 | 54,000 |
Key management personnel compensation | 155,520 | 669,261 |
Chief Operating Officer | ||
Disclosure of transactions between related parties [line items] | ||
Salaries and Consulting | 252,720 | 234,000 |
Share-based compensation | 461,146 | |
Bonus | 84,240 | 117,000 |
Key management personnel compensation | 336,960 | 812,146 |
Chief Development Officer | ||
Disclosure of transactions between related parties [line items] | ||
Salaries and Consulting | 336,960 | 182,000 |
Share-based compensation | 235,560 | 391,207 |
Bonus | 112,320 | 78,000 |
Key management personnel compensation | 684,840 | 651,207 |
Non-executive directors | ||
Disclosure of transactions between related parties [line items] | ||
Salaries and Consulting | 216,000 | 113,110 |
Share-based compensation | 1,390,778 | |
Key management personnel compensation | $ 216,000 | $ 1,503,888 |
BASIC AND DILUTED LOSS PER CO_3
BASIC AND DILUTED LOSS PER COMMON SHARE (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
BASIC AND DILUTED LOSS PER COMMON SHARE | ||
Loss attributable to common shareholders | $ 79,890,763 | $ 89,989,659 |
Weighted average number of common shares outstanding - basic | 178,363,103 | 166,858,136 |
Weighted average number of common shares outstanding - diluted | 178,363,103 | 166,858,136 |
Loss per share attributed to common shareholders - basic | $ (0.45) | $ (0.54) |
Loss per share attributed to common shareholders - diluted | $ (0.45) | $ (0.54) |
BASIC AND DILUTED LOSS PER CO_4
BASIC AND DILUTED LOSS PER COMMON SHARE - Additional information - (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share purchase options | ||
Earnings per share [line items] | ||
Anti-dilutive excluded from the diluted weighted-average number of ordinary shares | 12,279,125 | 12,860,500 |
SUPPLEMENTAL DISCLOSURE WITH _3
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Line Items] | ||
Consideration received for disposal of Lucky Strike project (Note 3(ii)) | $ 4,657,482 | |
Shares issued pursuant to acquisition of exploration and evaluation assets | 203,979 | $ 194,834 |
Right-of-use assets and liabilities | 151,527 | 152,501 |
Property and equipment included in accounts payable and accrued liabilities | 306,400 | |
Share issuance costs included in accounts payable and accrued liabilities | 9,850 | 296,106 |
Cash received for interest | $ 2,715,926 | $ 1,220,279 |
INCOME TAXES (Details)
INCOME TAXES (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INCOME TAXES | ||
(Loss) before income taxes | $ (79,890,763) | $ (89,989,659) |
Statutory tax rate | 27% | 27% |
Income tax (recovery) expense at statutory rate | $ (21,571,000) | $ (24,297,000) |
Flow-through shares and other non-deductible differences | 16,107,000 | 17,468,000 |
Change in unrecognized deductible temporary differences | 5,464,000 | 6,829,000 |
Income tax expense (recovery) | $ 0 | $ 0 |
INCOME TAXES - Significant comp
INCOME TAXES - Significant components of the Company's deferred tax assets and liabilities (Details) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 87,567,000 | $ 64,394,000 |
Investments | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 16,166,000 | 10,291,000 |
Exploration and evaluation assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 20,296,000 | 14,290,000 |
Non-capital tax losses carryforward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 28,328,000 | 18,416,000 |
Net capital losses carryforward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 11,528,000 | 11,528,000 |
Capital assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 2,276,000 | 1,362,000 |
Reclamation provision | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 1,285,000 | 1,411,000 |
Other | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 7,688,000 | $ 7,096,000 |
INCOME TAXES - Non-capital loss
INCOME TAXES - Non-capital loss carry forwards (Details) | Dec. 31, 2023 CAD ($) |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Non-capital loss carry forwards | $ 28,328,000 |
Capital loss carry forwards | 11,528,000 |
2040 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Non-capital loss carry forwards | 791,000 |
2041 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Non-capital loss carry forwards | 7,661,000 |
2042 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Non-capital loss carry forwards | 9,964,000 |
2043 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Non-capital loss carry forwards | $ 9,912,000 |
CONTINGENCY - Lease Obligations
CONTINGENCY - Lease Obligations (Details) - CAD ($) | 12 Months Ended | |||
Dec. 14, 2022 | Nov. 15, 2019 | Dec. 31, 2023 | Nov. 20, 2019 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Price per share | $ 8 | |||
Number of shares under claim | 17,500,000 | |||
Damages awarded value | $ 21,000,000 | |||
Amount claimed | 229,000,000 | |||
Accrued amount | $ 0 | |||
Three D | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Common shares owned | 13,500,000 | |||
131 | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Common shares owned | 4,000,000 | |||
Palisades | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Price per share | $ 0.08 |
FINANCIAL INSTRUMENTS - Company
FINANCIAL INSTRUMENTS - Company's financial instruments according to the fair value hierarchy (Details) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets fair value | $ 0 | |
Investments | Recurring fair value measurement | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,596,592 | $ 7,501,155 |
Financial assets fair value | 3,596,592 | 7,501,155 |
Secured notes | Recurring fair value measurement | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,454,300 | |
Financial assets fair value | 2,454,300 | |
Level 1 | Investments | Recurring fair value measurement | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets fair value | 3,408,092 | 7,474,287 |
Level 2 | Investments | Recurring fair value measurement | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets fair value | 188,500 | $ 26,868 |
Level 2 | Secured notes | Recurring fair value measurement | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets fair value | $ 2,454,300 |
FINANCIAL INSTRUMENTS - Changes
FINANCIAL INSTRUMENTS - Changes in fair value measurements of financial instruments classified as Level 3 (Details) | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
Disclosure of detailed information about financial instruments [line items] | |
Balance at December 31 | $ 110,687,512 |
Investments. | Level 3 | |
Disclosure of detailed information about financial instruments [line items] | |
Balance at January 1 | 500,000 |
Net Unrealized Gains/(Losses) | $ (500,000) |
FINANCIAL INSTRUMENTS - Estimat
FINANCIAL INSTRUMENTS - Estimated Fair Value (Details) | Dec. 31, 2023 CAD ($) |
Investments. | |
Disclosure of detailed information about financial instruments [line items] | |
Estimated fair value | $ 0 |
FINANCIAL INSTRUMENTS - Risk Ex
FINANCIAL INSTRUMENTS - Risk Exposure (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [line items] | |||
Secured notes | $ 2,454,300 | ||
Flow-through share premium | 12,426,322 | $ 20,063,350 | $ 22,729,196 |
Liabilities | 19,076,473 | 27,213,612 | |
Cash | 53,884,809 | $ 82,165,273 | $ 100,484,576 |
Less than one year | |||
Disclosure of detailed information about financial instruments [line items] | |||
Spend for satisfy remaining flow-through obligations | 45,500,423 | ||
Flow-through share premium | $ 12,426,322 |
FINANCIAL INSTRUMENTS - Market
FINANCIAL INSTRUMENTS - Market Risk (Details) | Dec. 31, 2023 CAD ($) |
FINANCIAL INSTRUMENTS | |
Effect on net income (loss), increase in market price | $ 359,659 |
Effect on net income (loss), decrease in market price | $ 359,659 |
Increase in market price (in percent) | 10% |
Decrease in market price (in percent) | 10% |
CAPITAL MANAGEMENT (Details)
CAPITAL MANAGEMENT (Details) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
CAPITAL MANAGEMENT | |||
Components of equity consisting of common shares, stock options and warrants, and deficit | $ 65,503,020 | $ 83,473,900 | $ 122,654,601 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 12 Months Ended | |||||||||
Jan. 01, 2024 CAD ($) shares $ / shares | Dec. 14, 2022 CAD ($) $ / shares | Dec. 31, 2023 CAD ($) shares | Dec. 31, 2023 shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2023 Options shares | Dec. 31, 2022 CAD ($) shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2022 shares | Dec. 31, 2022 Options shares | |
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Ifrs Share Price | $ / shares | $ 8 | |||||||||
Proceeds from issue of ordinary shares | $ | $ 50,000,000 | $ 78,986,588 | $ 52,549,677 | |||||||
Proceeds from issuing shares | $ | $ 22,440,215 | $ 2,489,754 | ||||||||
Number of stock options exercised | 178,500 | 178,500 | 4,341,875 | 4,341,875 | ||||||
Weighted average exercise price of stock option exercised | $ / shares | $ 0.74 | $ 1.76 | ||||||||
Number of share options expired in share-based payment arrangement | Options | 402,875 | 40,125 | ||||||||
Weighted average exercise price of share options expired in share-based payment arrangement | $ / shares | $ 6.55 | $ 7.12 | ||||||||
At Market Program [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Number of shares issued and fully paid | shares | 3,552,224 | 3,552,224 | 3,552,224 | 3,552,224 | 500,229 | 500,229 | 500,229 | 500,229 | ||
Ifrs Share Price | $ / shares | $ 6.47 | $ 5.10 | ||||||||
Proceeds from issue of ordinary shares | $ | $ 22,980,338 | $ 2,549,677 | ||||||||
Other fee and commission expense | $ | $ 540,123 | $ 59,923 | ||||||||
Sale of stock | At Market Program [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Number of shares issued and fully paid | shares | 2,217,353 | |||||||||
Ifrs Share Price | $ / shares | $ 4.63 | |||||||||
Proceeds from issue of ordinary shares | $ | $ 10,262,236 | |||||||||
Proceeds from issuing shares | $ | 10,021,027 | |||||||||
Other fee and commission expense | $ | $ 241,209 | |||||||||
Stock options expired | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Number of stock options exercised | shares | 6,375 | |||||||||
Weighted average exercise price of stock option exercised | $ / shares | $ 6.79 | |||||||||
Number of share options expired in share-based payment arrangement | shares | 5,000 | |||||||||
Weighted average exercise price of share options expired in share-based payment arrangement | $ / shares | $ 5.68 |