REG-Q1 2025 Financial Results
14/05/2025 07:00
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Reykjavík, May 14, 2025 (GLOBE NEWSWIRE) -- ("Amaroq" or the "Company")
Q1-2025 Financial Results
TORONTO, ONTARIO – 14 May 2025 – Amaroq Minerals Ltd. (AIM, TSX-V, NASDAQ
Iceland: AMRQ), an independent mining company with a substantial land package
of gold and strategic mineral assets in Southern Greenland, is pleased to
announce its Q1 2025 Financial Results. All dollar amounts are expressed in
Canadian dollars unless otherwise noted.
A remote presentation for analysts and investors will be held later today at
10:00am BST, details of which can be found further down in this announcement.
Eldur Olafsson, CEO of Amaroq, commented:
“As outlined at the time of our full year 2024 results, the pace of
construction and commissioning activities at our Nalunaq plant during the
first quarter of the year was understandably slow, due to the winter
conditions in Greenland. However, I am very pleased to report good progress so
far in the second quarter within our plant commissioning and particularly in
our mining operations. We utilised the winter months to mine the development
tunnels, giving us access to the orebody in the Mountain Block, and I am
pleased to say that towards the end of the Quarter we have been achieving
rates of up to 220t/d of ore, which is being stockpiled. We are now in the
final stages of agreeing mining KPIs with our contractor, Thyssen to support
feeding the plant with enough ore to allow 300t/day processing capacity by the
end of the year. I am also pleased to note steadily improving throughput rates
at our processing facility, although it must be noted that this period is
about testing each component within the facility, so we can then commission
and calibrate Phase One and plan the construction of Phase Two.
“Also during the quarter, we announced a 51% increased Mineral Resource,
including a maiden Indicated resource for Nalunaq with MRE4. Exploration
drilling at Nalunaq from 2022-24 has been a huge success, validated by MRE4
and confirming the exploration upside and mine scale potential, enabling us to
ultimately mine more accurately and increase mine life confidence. MRE4 is
being integrated into our dynamic mine plan, allowing the mining teams to
optimise their efforts. When combined with the updated KPIs set with our
mining contractor, this enables us to deliver the right tonnage and grade to
the processing facility.
“While we remain in the commissioning and construction phase at Nalunaq, I
am encouraged by progress to date and, with conditions continuing to improve
in Southern Greenland as we head into summer, our teams are working hard to
deliver our targeted throughput by the end of the year and a busy exploration
season.”
Q1 2025 Corporate Highlights
* Amaroq group liquidity of $23.4 million as at 31 March 2025, consisting of
cash balances of $16.7 million, undrawn revolving credit facility of $23.7
million, less trade payables of $17 million ($50.5 million as of December 31,
2024).
* Gold business working capital before convertible note liability and loan
payable of $22.2 million that includes prepaid contractors on the Nalunaq
project of $9.0 million as of March 31, 2025 ($47.6 million that includes
prepaid contractors on the Nalunaq project of $10.2 million as of December 31,
2024).
* The Gardaq Strategic Minerals Joint Venture has available liquidity of $4.4
million as of March 31, 2025 ($4.8 million as of December 31, 2024).
1Q 2025 Operational Highlights
* Nalunaq updated Mineral Resource Estimate confirmed a significant 51%
increase in overall contained gold, to 326.3koz at 29.2 g/t Inferred plus a
maiden Indicated Resource of 157.6koz at 32.4 g/t, demonstrating the robust
expansion potential of the Nalunaq deposit. Post period end the updated
off-site, conclusive fire assay results have significantly upgraded the
previously reported underground drilling, confirming stronger intersections
including 78.3 g/t Au over 1.72 m, (see detailed tables at the end of the
release).
* Construction and commissioning of the process plant continued during Q1
2025, following first gold pour at the end of 2024.
* As previously reported, typical commissioning issues while working in
Southern Greenland over the winter months resulted in some delays impacting
the ramp-up pace during Q1-2025.
* During Q1 2025, focus remained on enhancing the efficiency of the mining
teams and ensuring availability of equipment. To improve development rates,
the Company set new KPIs for the on-site mining contractor, involving
increasing the contractor’s staffing levels and fleet size to match the
production profile. In this context, performance-boosting equipment, such as
an electric double boom rig and a single boom rig were deployed to site, along
with a second long hole rig.
* Mining operations successfully focussed on ramp development, while extending
the ore drives into the resource base. Notably, the first stope was
successfully blasted at the beginning of March 2025.
* Meeting these performance criteria will enable mining to supply the
processing plant with sufficient ore to ramp up to full production rates,
concurrently with the completion of construction and full configuration of the
plant’s operational equipment to design capability.
* Good progress at the Hydropower project near Nalunaq, with the
pre-feasibility study finalised showing positive preliminary results. Project
preparation, design and schedule are expected to be complete by the end of
2025 with construction starting in 2026.
* The Company is now planning to proceed with the construction and
installation of Phase 2 in Q4 2025. This will provide additional time for the
commissioning and ramp-up Phase 1, as well as to complete engineering studies
aimed at upgrading the processing throughput capacity from the current
nameplate of 300 t/d to 450 t/d.
Post-period Highlights
* Post period end, good mining process has continued, with the integration of
MRE4 into the mining plan, which when combined with the increased grades from
the fire-assay results allows optimisation of the mining fleet and more
effective operations to target ore body.
* Construction, commissioning and calibration of the processing facilities has
continued into Q2 2025.
* Positive progress has been achieved with increasing average daily processing
rates continuing into Q2 2025, when including stoppages for commissioning,
calibration and rotation, with process capacity regularly reaching 250 t/d.
* Average grades while in the commissioning and trial mining stage of a
project vary, however as we experience more uptime from the processing unit,
grades have been improving and in accordance with the mine plan.
Outlook for 2025
There has been significant operational progress since the conclusion of Q1
2025. With continued up time in mine development rates and processing
throughput. We continue to target a run rate production of 300t/d in Q4 2025.
During this commissioning phase and as a result of promising operational
progress the Company expects full year gold production to be in the range of 5
– 20koz; a wide range at this stage due to the nature of the trial mining
and commissioning year. This for example entails stopping operations while we
install the final automated electrical systems, water system and the phase 2
flotation system. There is however potential to narrow this guidance range as
we progress operations through the remainder of the year. Once full ramp up is
achieved, the Company will provide its outlook for the full year run rate in
2026.
Details of conference call
A conference call for analysts and investors will be held this morning at
10:00 am BST, including a management presentation and Q&A session.
To join the meeting, please register at the below link:
https://us06web.zoom.us/j/85302918660
Financial Results
Period ended March 3 1 , 202 5 Three Three
m onths months
202 5 202 4
$ $
Financial Results
Exploration and evaluation expenses (193,420) (875,213)
General and administrative expenses (4,626,321) (3,959,226)
Selling expenses (48,352) -
Gain on lease modification 30,543 -
Foreign exchange gain (loss) 591,610 (79,509)
Interest income 26,306 15,326
Gardaq project management fees 643,553 636,326
Share of net losses of joint arrangement (370,343) (646,432)
Unrealised gain (loss) on derivative liability - (4,300,213)
Finance costs (452,273) (8,574)
Net loss and comprehensive loss (4,398,697) (9,217,515)
Basic and diluted loss per share (0.011) (0.03)
Financial Position
Financial Position As at
March 3 1 , 202 5 December 3 1 , 202 4
$ $
Financial Position
Cash 16,698,642 45,193,670
Investment in equity-accounted joint arrangement 14,531,970 14,902,313
Total assets 252,074,553 255,976,986
Total current liabilities 46,894,778 46,973,753
Total non-current liabilities 7,641,551 7,845,657
Shareholders’ equity 197,538,224 201,157,576
Working capital (before convertible notes liability and loan payable) 22,238,142 47,525,515
Working capital (convertible notes liability and loan payable included) (7,563,780) 18,903,783
Gold business liquidity 23,380,208 50,860,477
Detail of re-assayed results from Nalunaq Drilling
As previously reported in the Company(1), a number of underground drill
results were reported using provisional detectORE assaying method ahead of
being dispatched for offsite traditional fire assaying. These updated fire
assay results have now been received from ALS Geochemistry in Ireland and are
reported here. The new updated assay results provide for a significant upgrade
in intersection grades due to the partial leach properties for the detectORE
assay method. This further highlights the high grade nature of the orebody
present within the Mountain Black at Nalunaq
1 Amaroq presents Nalunaq 2024 Exploration Results, 27,02,2025
2024/5 Underground Drill Locations Reported used detectORE Provision Data
Hole ID Easting Northing Elevation Total Depth (m) Avg. Dip Avg. Azimuth
NAL-UG-2404* 508350 6691601 730 69.8 50 170
NAL-UG-2405* 508350 6691601 730 64.5 75 190
NAL-UG-2501* 508350 6691604 732 65.7 55 215
* logged, sampled and detectORE assays received
Projection WGS 84 UTM zone 23N
All core drilled using NQ diameter
Updated Mineralized Intervals Following Receipt of Fire Assay Results
Hole ID From To Interval (m) True thickness (m) Original Au ppm Repeat Au ppm Delta
NAL-UG-2404 49.9 50.4 0.5 0.5 31.6 56.8 80%
NAL-UG-2404 50.8 52.9 2.12 2.12 23.3 40.6 74%
Including 0.5 57.2 105.5 84%
NAL-UG-2405 49 50.7 1.72 1.61 47.6 78.3 65%
Including 0.5 87.1 192.0 120%
NAL-UG-2501 50.2 51.7 1.49 1.46 23.6 27.9 18%
Including 0.49 48.5 65.5 35%
NAL-UG-2501 54.4 54.9 0.5 0.49 25.8 37.0 43%
Original assaying performed by detectORE™
Repeat assaying performed by fire assay methods
True thickness calculated using Main Vein intersection angles recorded during
geological logging and from 3D modelling in Leapfrog Geo software.
Sampling and QAQC Disclosure
Core Drilling – Fire assaying
Underground drill core undergoes full core sampling without cutting to address
volume variance effects. All drill core samples were placed into thick polymer
bags with a sample ticket. All samples were prepared at ALS Geochemistry’s
containerised preparation laboratory on-site at Nalunaq, before being packaged
and sent to an accredited laboratory, ALS Geochemistry, Loughrea, Ireland, for
analysis.
Sample preparation scheme PREP-31BY was used on all samples. This involves
crushing to 70% under 2 mm, rotary split off 1 kg, and pulverizing the split
to better than 85% passing 75 microns. Samples were then analysed by 50 g fire
assay with method Au-AA26 which has a detection limit of 0.01 ppm Au. Samples
containing visible gold and samples considered to be the Main Vein were
assayed with screen-metallics fire assay technique Au-SCR24 which has a
detection limit of 0.05 ppm Au. This involves screening 1 kg of pulverised
sample to 106 microns followed by a gravimetric assay of the entire plus
fraction and a duplicate 50 g AAS assay of the minus fraction.
Amaroq’s QA/QC program consists of the systematic insertion of certified
reference materials of known gold content, blanks, and quarter core field
duplicates at a rate of 1 in 20 or 5% per QA/QC type. In addition, ALS insert
blanks and standards into the analytical process. The average sample mass was
~4 kg.
Enquiries:
Amaroq Minerals Ltd.
Eldur Olafsson, Executive Director and CEO
eo@amaroqminerals.com
Ed Westropp, Head of BD and Corporate Affairs
+44 (0)7385755711
ewe@amaroqminerals.com
Eddie Wyvill, Corporate Development
+44 (0)7713 126727
ew@amaroqminerals.com
Panmure Liberum Limited (Nominated Adviser and Corporate Broker)
Scott Mathieson
Nikhil Varghese
+44 (0) 20 7886 2500
Canaccord Genuity Limited (Corporate Broker)
James Asensio
Harry Rees
Tel: +44 (0) 20 7523 8000
Camarco (Financial PR)
Billy Clegg
Elfie Kent
Fergus Young
+44 (0) 20 3757 4980
amaroq@camarco.co.uk
For Company updates:
Follow @Amaroq_Minerals on X (Formerly known as Twitter)
Follow Amaroq Minerals Ltd. on LinkedIn
Further Information:
About Amaroq Minerals
Amaroq’s principal business objectives are the identification, acquisition,
exploration, and development of gold and strategic metal properties in South
Greenland. The Company’s principal asset is a 100% interest in the Nalunaq
Gold mine. The Company has a portfolio of gold and strategic metal assets in
Southern Greenland covering the two known gold belts in the region as well as
advanced exploration projects at Stendalen and the Sava Copper Belt exploring
for Strategic metals such as Copper, Nickel, Rare Earths and other minerals.
Amaroq Minerals is continued under the Business Corporations Act (Ontario) and
wholly owns Nalunaq A/S, incorporated under the Greenland Companies Act.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Glossary
Au gold
g grams
g/t grams per tonne
km kilometres
koz thousand ounces
m meters
MRE3 Mineral Resource Estimate 2022
MRE4 Mineral Resource Estimate 2024
oz ounces
t tonnes
t/d Tonnes per day
t/m (3) tonne per cubic meter
USD/ozAu US Dollar per ounce of gold
Inside Information
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No. 596/2014 on Market Abuse ("UK MAR"), as
it forms part of UK domestic law by virtue of the European Union (Withdrawal)
Act 2018, and Regulation (EU) No. 596/2014 on Market Abuse ("EU MAR").
Qualified Person Statement
The technical information presented in this press release has been approved by
James Gilbertson CGeol, VP Exploration for Amaroq Minerals and a Chartered
Geologist with the Geological Society of London, and as such a Qualified
Person as defined by NI 43-101.
Amaroq Minerals Ltd.
UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended March 31, 2025
The attached financial statements have been prepared by Management of Amaroq
Minerals Ltd. and have not been reviewed by the auditor
As at As at
March 31, December 31,
Notes 2025 2024
$ $
ASSETS
Current assets
Cash 16,698,642 45,193,670
Sales tax receivable 113,163 163,611
Prepaid expenses and others 3 8,962,526 10,223,447
Interest receivable 15,938 114,064
Inventory 4 13,540,729 10,182,744
Total current assets 39,330,998 65,877,536
Non-current assets
Deposit 178,088 181,871
Escrow account for closure obligations 5 7,071,246 6,799,104
Financial Asset - Related Party 6,17 7,342,875 6,699,179
Investment in equity accounted joint arrangement 6 14,531,970 14,902,313
Mineral properties 7 48,683 48,683
Right of use asset 11.1 117,470 621,826
Capital assets 8 183,453,223 160,846,474
Total non-current assets 212,743,555 190,099,450
TOTAL ASSETS 252,074,553 255,976,986
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities 9 17,001,214 18,233,113
Loans payable 10 29,801,922 28,621,732
Lease liabilities – current portion 11 91,642 118,908
Total current liabilities 46,894,778 46,973,753
Non-current liabilities
Lease liabilities 11 84,887 591,805
Asset retirement obligation 12 7,556,664 7,253,852
Total non-current liabilities 7,641,551 7,845,657
Total liabilities 54,536,329 54,819,410
Equity
Capital stock 291,213,156 291,169,401
Contributed surplus 8,744,805 8,009,215
Accumulated other comprehensive loss (36,772) (36,772)
Deficit (102,382,965) (97,984,268)
Total equity 197,538,224 201,157,576
TOTAL LIABILITIES AND EQUITY 252,074,553 255,976,986
The accompanying notes are an integral part of these unaudited condensed
interim consolidated financial statements.
Three months
ended March 31,
Notes 2025 2024
$ $
Expenses
Exploration and evaluation expenses 14 (193,420) (875,213)
General and administrative 15 (4,626,321) (3,959,226)
Selling expenses (48,352) -
Gain on lease modification 30,543 -
Foreign exchange gain (loss) 591,610 (79,509)
Operating loss (4,245,940) (4,913,948)
Other income (expenses)
Interest income 26,306 15,326
Gardaq Project management fees 643,553 636,326
Share of net loss of joint arrangement 6 (370,343) (646,432)
Unrealized gain (loss) on derivative liability - (4,300,213)
Finance costs 16 (452,273) (8,574)
Net loss and comprehensive loss (4,398,697) (9,217,515)
Weighted average number of common shares outstanding – basic and diluted 397,704,035 290,574,484
Basic and diluted loss per common share 18 (0.011) (0.03)
The accompanying notes are an integral part of these unaudited condensed
interim consolidated financial statements.
Amaroq Minerals Ltd.
Consolidated Statements of Changes in Equity
(Unaudited, in Canadian Dollars)
Notes Number of common shares outstanding Capital Stock Contributed surplus Accumulated other comprehensive Deficit Total Equity
loss
$ $ $ $ $
Balance at January 1, 2024 263,670,051 132,117,971 6,725,568 (36,772) (74,528,130) 64,278,637
Net loss and comprehensive loss - - - - (9,217,515) (9,217,515)
Shares issued under a fundraising 62,724,758 75,574,600 - - - 75,574,600
Shares issuance costs - (1,047,098) - - - (1,047,098)
Options exercised, net 60,637 53,073 (70,500) - - (17,427)
Stock-based compensation - - 712,306 - - 712,306
Balance at March 31, 2024 326,455,446 206,698,546 7,367,374 (36,772) (83,745,645) 130,283,503
Balance at January 1, 2025 397,702,330 291,169,401 8,009,215 (36,772) (97,984,268) 201,157,576
Net loss and comprehensive loss - - - - (4,398,697) (4,398,697)
Options exercised, net 13.1 29,885 43,755 (43,755) - - -
Stock-based compensation 13 - - 779,345 - - 779,345
Balance at March 31, 2025 397,732,215 291,213,156 8,744,805 (36,772) (102,382,965) 197,538,224
The accompanying notes are an integral part of these unaudited condensed
interim consolidated financial statements.
Three months ended
March 31,
Notes 2025 2024
$ $
Operating activities
Net loss for the period (4,398,697) (9,217,515)
Adjustments for:
Depreciation 8 216,022 172,763
Amortisation of ROU asset 11.1 29,705 19,997
Stock-based compensation 13 779,345 712,306
Accretion of discount on asset retirement obligation 12 302,812 -
Unrealized (gain) loss on derivative liability - 4,300,213
Share of net losses of joint arrangement 6 370,343 646,432
Gardaq Project management fees - (636,326)
Gain on lease modification (30,543) -
Foreign exchange (846,768) (195,812)
Finance costs 149,461 -
(3,428,320) (4,197,942)
Changes in non-cash working capital items:
Sales tax receivable 50,448 (74,352)
Due from related party 6, 17 (643,734) -
Prepaid expenses and others 1,430,552 (988,735)
Inventory (3,357,985) -
Deposit 3,783 -
Accounts payable and accrued liabilities (1,289,278) 955,992
(3,806,214) (107,095)
Cash flow used in operating activities (7,234,534) (4,305,037)
Investing activities
Transfer to escrow account for closure obligations - (5,066,194)
Construction in progress and acquisition of capital assets 8 (21,814,454) (21,476,951)
Prepayment for acquisition of ROU asset - (5,825)
Cash flow used in investing activities (21,814,454) (26,548,970)
Financing activities
Proceeds from issuance of shares - 75,574,600
Shares issuance costs - (1,047,098)
Lease payments 11 (37,412) (18,145)
Cash flow from (used) financing activities (37,412) 74,509,357
Net change in cash before effects of exchange rate changes on cash during the period (29,086,400) 43,655,350
Effects of exchange rate changes on cash 591,372 416,868
Net change in cash during the period (28,495,028) 44,072,218
Cash, beginning of period 45,193,670 21,014,633
Cash, end of period 16,698,642 65,086,851
Supplemental cash flow information
Borrowing costs capitalised to capital assets 8 1,008,317 1,223,021
ROU assets acquired through lease 11.1 - 155,214
The accompanying notes are an integral part of these unaudited condensed
interim consolidated financial statements.
1. NATURE OF OPERATIONS, BASIS OF PRESENTATION AND GOING CONCERN
Amaroq Minerals Ltd. (the “Corporation”) was incorporated on February 22,
2017, under the Canada Business Corporations Act. As of June 19, 2024, the
Corporation completed its continuance from the Canada Business Corporations
Act into the Province of Ontario under the Business Corporations Act
(Ontario). The Corporation’s head office is situated at 100 King Street
West, Suite 3400, First Canadian Place, Toronto, Ontario, M5X 1A4, Canada. The
Corporation operates in one industry segment, being the acquisition,
exploration and development of mineral properties. It owns interests in
properties located in Greenland. The Corporation’s financial year ends on
December 31. Since July 2017, the Corporation’s shares are listed on the TSX
Venture Exchange (the “TSX-V”). Since July 2020, the Corporation’s
shares are also listed on the AIM market of the London Stock Exchange
(“AIM”) and from November 1, 2022, on Nasdaq First North Growth Market
Iceland which were transferred on September 21, 2023 on Nasdaq Main Market
Iceland (“Nasdaq”) under the AMRQ ticker.
These unaudited condensed interim consolidated financial statements for the
three months ended March 31, 2025 (“Financial Statements”) were reviewed
and authorized for issue by the Board of Directors on May 14, 2025.
1.1 Basis of presentation and consolidation
The Financial Statements include the accounts of the Corporation and those of
its subsidiary Nalunaq A/S, corporation incorporated under the Greenland
Public Companies Act, owned at 100%. The Financial Statements also include the
Corporation’s 51% equity share of Gardaq A/S, a joint venture with GCAM LP
(Note 6).
The Financial Statements have been prepared in accordance with International
Financial Reporting Standards and International Accounting Standards as issued
by the International Accounting Standards Board and interpretations
(collectively IFRS Accounting Standards) including International Accounting
Standard (“IAS”) 34, Interim Financial Reporting. The Financial Statements
have been prepared on the historical cost basis, except for financial
instruments at fair value.
The Financial Statements should be read in conjunction with the audited annual
financial statements for the year ended December 31, 2024, which have been
prepared in accordance with IFRS as issued by the IASB. The accounting
policies, methods of computation and presentation applied in these Financial
Statements are consistent with those of the previous financial year ended
December 31, 2024.
1.2 Going concern
The Financial Statements have been prepared on a going concern basis, which
contemplates the realization of assets and the satisfaction of liabilities in
the normal course of business. The Corporation is transitioning from
development to production at its flagship Nalunaq project. While initial
commissioning activities have commenced, the Corporation has not yet generated
significant revenues and continues to incur development and operating costs.
The ability of the Corporation to continue as a going concern is dependent
upon the successful ramp-up of production and achievement of positive
operating cash flows to fund ongoing operations and capital commitments.
2. CRITICAL ACCOUNTING JUDGMENTS AND ASSUMPTIONS
The preparation of the Financial Statements requires Management to make
judgments and form 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. On an ongoing basis, Management
evaluates its judgments in relation to assets, liabilities and expenses.
Management uses past experience and various other factors it believes to be
reasonable under the given circumstances as the basis for its judgments.
Actual outcomes may differ from these estimates under different assumptions
and conditions.
2. CRITICAL ACCOUNTING JUDGMENTS AND ASSUMPTIONS (CONT’D)
In preparing the Financial Statements, the significant judgements made by
Management in applying the Corporation accounting policies and the key sources
of estimation uncertainty were the same as those that applied to the
Corporation’s audited annual financial statements for the year ended
December 31, 2024.
3. PREPAID EXPENSES AND OTHERS
As at As at December 31, 2024
March 31,
2025
$ $
Advance payments to suppliers and mining contractors 7,465,536 9,116,763
Other prepayments 1,496,990 1,106,684
Total prepaid expenses and others 8,962,526 10,223,447
The Corporation’s prepaid expenses and others mainly consist of downpayments
to vendors and contractors involved in the supply of drilling rigs and
consumables, process plant equipment, infrastructure and mine development
work.
4. INVENTORY
As at As at December 31, 2024
March 31,
2025
$ $
Ore stockpile 4,055,545 2,849,035
Gold-in-circuit 3,537,416 -
Dore bars 248,875 -
Supplies and spare parts 3,959,417 2,028,116
Purchases in transit 1,739,476 5,305,593
Total inventory 13,540,729 10,182,744
Purchases in transit include spare parts, consumables and equipment.
5. ESCROW ACCOUNT FOR CLOSURE OBLIGATIONS
On behalf of Nalunaq’s licence holder, an escrow account has been set up
with the holder of the licence as holder of the account and the Government of
Greenland as beneficiary. The funds in the escrow account have been provided
in favour of the Government of Greenland as security for fulfilling the
closure obligations following the closure of the Nalunaq mine after operations
are finished (note 12).
As at March 31, 2025 As at December 31, 2024
$ $
Balance beginning 6,799,104 598,939
Additions - 6,044,555
Effect of foreign exchange 272,142 155,610
Balance ending 7,071,246 6,799,104
Non-current portion – escrow account for closure obligations (7,071,246) (6,799,104)
Current portion – escrow account for closure obligations - -
6. INVESTMENT IN EQUITY ACCOUNTED JOINT ARRANGEMENT
As at As at
March 31, December 31,
2025 2024
$ $
Balance at beginning of period 14,902,313 23,492,811
Share of joint venture’s net losses (370,343) (8,590,498)
Balance at end of period 14,531,970 14,902,313
Original investment in Gardaq ApS 7,422 7,422
Transfer of non-gold strategic minerals licences at cost 36,896 36,896
Investment at conversion of Gardaq ApS to Gardaq A/S 55,344 55,344
Gain on FV recognition of equity accounted investment in joint venture 31,285,536 31,285,536
Investment retained at fair value- 51% share 31,385,198 31,385,198
Share of joint venture’s cumulative net losses (16,853,228) (16,482,885)
Balance at end of period 14,531,970 14,902,313
The following tables summarize the unaudited financial information of Gardaq
A/S.
As at As at
March 31, December 31,
2025 2024
$ $
Cash and cash equivalent 4,414,559 4,819,296
Prepaid expenses and other 105,737 105,054
Total current assets 4,520,296 4,924,350
Mineral property 117,576 117,576
Total assets 4,637,872 5,041,926
Accounts payable and accrued liabilities 93,606 415,194
Financial liability - related party 7,342,875 6,699,179
Total liabilities 7,436,481 7,114,373
Capital stock 30,246,937 30,246,937
Deficit (33,045,546) (32,319,384)
Total equity (2,798,609) (2,072,447)
Total liabilities and equity 4,637,872 5,041,926
For the three months ended For the three months ended
March 31, March 31,
2025 2024
$ $
Exploration and Evaluation expenses (209,175) (842,840)
Interest income 427 2,928
Foreign exchange gain 129,029 177,623
Operating loss (79,719) (662,289)
Other expenses (646,443) (605,225)
Net loss and comprehensive loss (726,162) (1,267,514)
6. INVESTMENT IN EQUITY ACCOUNTED JOINT ARRANGEMENT (CONT’D)
6.1 Financial Asset – Related Party
Subject to a Subscription and Shareholder Agreement dated 13 April 2023, the
Corporation undertakes to subscribe to two ordinary shares in Gardaq (the
“Amaroq shares”) at a subscription price of GBP 5,000,000 no later than 10
business days after the third anniversary of the completion of the
subscription agreement.
Amaroq’s subscription will be completed by the conversion of Gardaq’s
related party balance into equity shares. Gardaq’s related party payable
balance consists of overhead, management, general and administrative expenses
payable to the Corporation. In the event that the related party payable
balance is less than GBP 5,000,000, the Corporation shall, no later than 10
business days after the third anniversary of Completion:
a) subscribe to one Amaroq share by conversion of the amount payable to
the Corporation,
b) subscribe to one Amaroq share at a subscription price equal to GBP
5,000,000 less the amount payable to the Corporation
In the event that the amount payable to the Corporation exceeds GBP 5,000,000,
the Corporation shall subscribe to the Amaroq shares at a subscription price
equal to GBP 5,000,000 by conversion of GBP 5,000,000 of the amount due from
Gardaq. Gardaq shall not be liable to repay any of the balance payable to the
Corporation that exceeds GBP 5,000,000 (equivalent to CAD 9,282,650 as at
March 31, 2025).
During the three months ended March 31, 2025, the Corporation classified the
financial asset should be classified as a non-current asset since the amount
will be settled during April 2026. As a result, an amount of $7,342,875 is
classified as a non-current asset as at March 31, 2025 ($6,699,179
reclassified as at December 31, 2024).
7. MINERAL PROPERTIES
As at December 31, Additions As at
2024 March 31,
2025
$ $ $
Nalunaq – Au 1 - 1
Tartoq – Au 18,431 - 18,431
Vagar – Au 11,103 - 11,103
Nuna Nutaaq – Au 6,076 - 6,076
Anoritooq – Au 6,389 - 6,389
Siku – Au 6,683 - 6,683
Total mineral properties 48,683 - 48,683
As at December 31, Transfers As at
2023 March 31, 2024
$ $ $
Nalunaq – Au 1 - 1
Tartoq – Au 18,431 - 18,431
Vagar – Au 11,103 - 11,103
Nuna Nutaaq – Au 6,076 - 6,076
Anoritooq – Au 6,389 - 6,389
Siku – Au 6,821 (138) 6,683
Total mineral properties 48,821 (138) 48,683
8. CAPITAL ASSETS
Field equipment and Vehicles and rolling stock Equipment (including software) Construction in progress Total
infrastructure
$ $ $ $ $
Three months ended March 31, 2025
Opening net book value 1,339,006 4,545,572 46,571 154,915,325 160,846,474
Additions - - - 22,822,771 22,822,771
Depreciation (49,594) (150,830) (15,598) - (216,022)
Closing net book value 1,289,412 4,394,742 30,973 177,738,096 183,453,223
Field equipment and Vehicles and rolling stock Equipment (including software) Construc tion in progress Total
infrastructure
$ $ $ $ $
As at March 31, 2025
Cost 2,351,042 6,197,074 232,231 177,738,096 186,518,443
Accumulated depreciation (1,061,630) (1,802,332) (201,258) - (3,065,220)
Closing net book value 1,289,412 4,394,742 30,973 177,738,096 183,453,223
Field equipment and Vehicles and rolling stock Equipment (including software) Construc tion In progress Total
infrastruc ture
$ $ $ $ $
December 31, 2024
Opening net book value 1,537,379 3,312,118 108,822 33,283,240 38,241,559
Additions - 1,941,750 138 121,632,085 123,573,973
Disposals - (149,916) - - (149,916)
Depreciation (198,373) (558,380) (62,389) - (819,142)
Closing net book value 1,339,006 4,545,572 46,571 154,915,325 160,846,474
Field equipment and Vehicles and rolling stock Equipment (including software) Construc tion In progress Total
infrastruc ture
$ $ $ $ $
As at December 31, 2024
Cost 2,351,042 6,197,074 232,231 154,915,325 163,695,672
Accumulated depreciation (1,012,036) (1,651,502) (185,660) - (2,849,198)
Closing net book value 1,339,006 4,545,572 46,571 154,915,325 160,846,474
8. CAPITAL ASSETS (CONT’D)
Depreciation of capital assets related to exploration and evaluation
properties is being recorded in exploration and evaluation expenses in the
consolidated statement of comprehensive loss, under depreciation. Depreciation
of $25,612 ($157,262 for the three months ended March 31, 2024) was expensed
as exploration and evaluation expenses during the three months ended
March 31, 2025. During the three months ended March 31, 2025, Buildings,
Equipment, Infrastructure and Vehicles and rolling stock depreciation of
$174,909 ($nil for the three months ended March 31, 2024) was capitalized to
construction in progress.
As at March 31, 2025, the Corporation had capital commitments, of $33,181,956
($16,232,290 as at December 31, 2024). These commitments relate to the
continued development of the mine, construction and commissioning of the
processing plant, purchases of mobile equipment and establishment of surface
infrastructure.
During the first three months of 2025 the Corporation capitalised borrowing
costs of $1,008,317 ($1,223,021 for the first three months of 2024) to
construction in progress, which are included in additions. Borrowing costs
included in the cost of construction in progress arose on the Corporation’s
convertible note and loan payables. Refer to note 10 for details with respect
to the interest rates on these loans.
9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
As at As at December 31, 2024
March 31,
2025
$ $
Suppliers and mining contractors payable 16,379,058 17,176,818
Employee benefits payable 80,596 707,211
Other liabilities 541,560 349,084
Total accounts payable and accrued liabilities 17,001,214 18,233,113
The Corporation’s accounts payable and accrued liabilities mainly consist of
amounts due to vendors and contractors involved in mine development work as
well as process plant construction and commissioning activities.
10. LOANS PAYABLE
As at As at
March 31, December 31,
2025 2024
$ $
Balance, beginning 28,621,732 -
Gross proceeds from issue - 25,087,636
Recognition of loan after note conversion - 1,286,785
Transaction costs - (693,272)
Accretion of discount 308,058 318,238
Accrued interest 841,298 1,010,823
Foreign exchange gain 30,834 1,611,522
Balance, ending 29,801,922 28,621,732
Non-current portion - -
Current portion 29,801,922 28,621,732
10. LOANS PAYABLE (CONT’D)
10.1 Revolving Credit Facility
A $25 million (US$18.5 million) Revolving Credit Facility (“RCF”) was
entered into with Landsbankinn hf. and Fossar Investment Bank on September 1,
2023, with a two-year term expiring on September 1, 2025 and priced at the
Secured Overnight Financing Rate (“SOFR”) plus 950bps. Interest is
capitalized and payable at the end of the term.
The RCF is denominated in US Dollars and the SOFR interest rate is determined
with reference to the CME Term SOFR Rates published by CME Group Inc. The RCF
carries (i) a commitment fee of 0.40% per annum calculated on the undrawn
facility amount and (ii) an arrangement fee of 2.00% on the facility amount
where 1.5% has been paid on the closing date of the facility and 0.50% was
paid at the first draw down. The facility is not convertible into any
securities of the Corporation.
The facility is secured by (i) a bank account pledge from the Corporation and
Nalunaq A/S, (ii) share pledges over all current and future acquired shares in
Nalunaq A/S and Gardaq A/S held by the Corporation pursuant to the terms of
share pledge agreements, (iii) a proceeds loan assignment agreement, (iv) a
pledge agreement in respect of owner’s mortgage deeds and (v) a licence
transfer agreement. During September 2024, the Corporation has drawn on this
facility and the loan payable amount as of March 31, 2025, is $29,801,922.
10.2 Cost Overrun Facility
$13.5 million (US$10 million) Revolving Cost Overrun Facility was entered into
with JLE Property Ltd. on September 1, 2023, on the same terms as the Bank
Revolving Credit Facility.
The Overrun Facility is denominated in US Dollars with a two-year term,
expiring on September 1, 2025, and will bear interest at the CME Term SOFR
Rates by CME Group Inc. and have a margin of 9.5% per annum. The Overrun
Facility carries a stand-by fee of 2.5% on the amount of committed funds. The
Overrun Facility is not convertible into any securities of the Corporation.
The Overrun Facility will be secured by (i) bank account pledge agreements
from the Corporation and Nalunaq A/S, (ii) share pledges over all current and
future acquired shares in Nalunaq A/S and Gardaq A/S held by the Corporation
pursuant to the terms of share pledge agreements, (iii) a proceeds loan
assignment agreement, (iv) a pledge agreement in respect of owner’s mortgage
deeds and (v) a licence transfer agreement. The Corporation has not yet drawn
on this facility.
10. LOANS PAYABLE (CONT’D)
10.3 US$35 million Revolving Credit Facility Heads of Terms
On December 30, 2024, the Corporation closed a US$35 million debt financing
package with Landsbankinn hf. in three Revolving Credit Facilities, securing a
substantial increase and extension to its existing debt facilities.
* The financing package, upon its utilization, will replace the existing
credit and cost overrun facilities.
* The US$35 million debt financing package with Landsbankinn consists of: *
US$18.5 million Facility A with a margin of 9.5% per annum, reduced to 7.5%
once Facility C has become available.
* US$10 million Facility B with a margin of 9.5% per annum, reduced to 7.5%
once Facility C has become available
* US $6.5 million Facility C with a margin of 7.5%, which becomes available
once all other facilities have been fully drawn and the Corporation’s
cumulative EBITDA over the preceding three-month period exceeds CAD 6 million
* Facility A will be utilized to refinance the Corporation’s existing
revolving credit facilities entered into on 1 September 2023 (note 10.1)
* Facilities B and C will be applied towards working capital and general
corporate purposes. These facilities involve covenants relating to EBITDA and
the Corporation’s equity ratio.
* The new facilities will have a 1.5% arrangement fee, a 0.4% commitment fee
on unutilised amounts, and a termination date of December 1, 2026.
* The facilities are secured by a combination of a property and operational
equipment mortgage, share pledge over subsidiaries, certain bank account
pledges and a license transfer agreement.
* The use of this debt financing package is conditional upon the Corporation
fulfilling certain conditions including providing security that is appropriate
to the lender, discharging its existing debt under the Revolving Credit
Facility (note 10.1) and cancelling its Cost Overrun Facility (note 10.2) As
of March 31, 2025 the Corporation’s undrawn US$10.0 million debt facilities
dated September 1, 2023, has not been cancelled and so this debt financing
package is not yet available for use by the Corporation.
11. LEASE LIABILITIES
As at As at
March 31, December 31,
2025 2024
$ $
Balance beginning 710,713 657,440
Lease additions - 155,214
Lease payment (37,412) (138,356)
Interest 8,422 36,415
Lease modification (505,194) -
Balance ending 176,529 710,713
Non-current portion – lease liabilities (84,887) (591,805)
Current portion – lease liabilities 91,642 118,908
The Corporation has two leases for its offices. In October 2020, the
Corporation started a lease for five years and five months including five free
rent months during this period. The monthly rent is $8,825 until March 2024
and $9,070 for the balance of the lease. The Corporation has the option to
renew the lease for an additional five-year period at $9,070 monthly rent
indexed annually to the increase of the consumer price index of the previous
year for the Montreal area. During February 2025, management determined that
they will not renew the lease when it expires on February 28, 2026.
Furthermore, the Corporation agreed to reduce the leased area of the Montreal
office lease and as a result monthly rent was reduced to $5,018 per month for
the remainder of the lease term and a lease modification of $505,194 was
recognized during the three-month period ended March 31, 2025. In March 2024,
the Corporation started a new lease for a two-year term with the option to
extend for two more years. The monthly rent is $5,825 until March 2025 after
which the monthly rent may increase as per the lease terms.
11. LEASE LIABILITIES (CONT’D)
11.1 Right of use asset
As at As at
March 31, December 31,
2025 2024
$ $
Opening net book value 621,826 574,856
Additions - 161,039
Amortisation (29,705) (114,069)
Impact of Lease Modification (474,651) -
Closing net book value 117,470 621,826
Cost 161,039 997,239
Accumulated amortisation (43,569) (375,413)
Closing net book value 117,470 621,826
Amortisation of right-of-use assets is being recorded in general and
administrative expenses in the consolidated statement of comprehensive loss,
under depreciation.
12. ASSET RETIREMENT OBLIGATION
As at As at
March 31, December 31,
2025 2024
$ $
Balance beginning 7,253,852 -
Additions - 6,833,213
Accretion 302,812 420,639
Total asset retirement obligation 7,556,664 7,253,852
The asset retirement obligation represents the present value of the costs
associated with the Corporation’s mine decommissioning, cleanup, removal,
de-contamination and closure plan (“the closure plan”). The closure plan
has been developed in accordance with the guidelines of Section 43(2) of the
Mineral Resources Act of Greenland. This obligation will be settled towards
the end of the mine’s life, which is estimated to be during the year 2032.
The Corporation has set up an escrow account with the Government of Greenland
as beneficiary as security for fulfilling the closure obligations (note 5).
The Corporation has determined that the obligation’s costs will be incurred
mainly in Danish Krone (DKK) and has utilized DKK foreign exchange rates and
risk-free rates on government bonds to measure the obligation. Accretion of
discount for the three months ended March 31, 2025 of $302,812 ($nil for the
three months ended March 31, 2024) includes both the foreign exchange impact
and accretion of the obligation as they both affect estimated future cash
flows.
13. STOCK-BASED COMPENSATION
13.1 Stock options
An incentive stock option plan (the “Plan”) was approved initially in 2017
and renewed by shareholders on June 14, 2024. The Plan is a “rolling”
plan whereby a maximum of 10% of the issued shares at the time of the grant
are reserved for issue under the Plan to executive officers, directors,
employees and consultants. The Board of directors attributes that the stock
options and the exercise price of the options shall not be less than the
closing price on the last trading day, preceding the grant date. The options
have a maximum term of ten years. Options granted pursuant to the Plan shall
vest and become exercisable at such time or times as may be determined by the
Board, except options granted to consultants providing investor relations
activities shall vest in stages over a 12-month period with a maximum of
one-quarter of the options vesting in any three-month period. The Corporation
has no legal or constructive obligation to repurchase or settle the options in
cash.
On March 2025, an employee of the Corporation exercised his options. As a
result, 104,592 options were exercised which resulted in the employee
receiving 29,885 shares net of applicable withholdings.
Changes in stock options are as follows:
Three months ended March 31, 2025 December 31, 2024
Number of options Weighted average exercise price Number of options Weighted average exercise price
$ $
Balance, beginning 7,220,075 0.59 9,188,365 0.59
Granted - - 22,988 1.30
Exercised (104,592) 0.67 (1,991,278) 0.61
Balance, end 7,115,483 0.59 7,220,075 0.59
Balance, end exercisable 7,115,483 0.59 7,220,075 0.59
From the options exercised during the three months ended March 31, 2025,
40,829 shares (948,347 for the year ended December 31, 2024) were withheld to
cover the stock option grant price and related taxes.
Stock options outstanding and exercisable as at March 31, 2025 are as follows:
Number of options outstanding Number of options exercisable Exercise price Expiry date
$
1,660,000 1,660,000 0.38 December 31, 2025
100,000 100,000 0.50 September 13, 2026
1,195,000 1,195,000 0.70 December 31, 2026
2,650,000 2,650,000 0.60 January 17, 2027
73,333 73,333 0.75 April 20, 2027
39,062 39,062 0.64 July 14, 2027
1,330,000 1,330,000 0.70 December 30, 2027
45,100 45,100 1.09 December 20, 2028
11,538 11,538 1.30 May 14, 2029
11,450 11,450 1.31 June 3, 2029
7,115,483 7,115,483
13. STOCK-BASED COMPENSATION (CONT’D)
13.2 Restricted Share Unit
13.2.1 Description
Conditional awards were made in 2022 that give participants the opportunity to
earn restricted share unit awards under the Corporation’s Restricted Share
Unit Plan (“RSU Plan”) subject to the generation of shareholder value over
a four-year performance period.
The awards are designed to align the interests of the Corporation’s
employees and shareholders by incentivising the delivery of exceptional
shareholder returns over the long-term. Participants receive a 10% share of a
pool which is defined by the total shareholder value created above a 10% per
annum compound hurdle.
The awards comprise three tranches, based on performance measured from
January 1, 2022, to the following three measurement dates:
* First Measurement Date: December 31, 2023;
* Second Measurement Date: December 31, 2024; and
* Third Measurement Date: December 31, 2025.
Restricted share unit awards granted under the RSU Plan as a result of
achievement of the total shareholder return performance conditions are subject
to continued service, with vesting as follows:
* Awards granted after the First Measurement Date - 50% vest after one year,
50% vest after three years.
* Awards granted after the Second Measurement Date - 50% vest after one year,
50% vest after two years.
* Awards granted after the Third Measurement Date - 100% vest after one year.
The maximum term of the awards is therefore four years from grant.
The Corporation’s starting market capitalization is based on a fixed share
price of $0.552. Value created by share price growth and dividends paid at
each measurement date will be calculated with reference to the average closing
share price over the three months ending on that date.
* After December 31, 2023, 100% of the pool value at the First Measurement
Date is delivered as restricted share units under the RSU Plan, subject to the
maximum number of shares that can be allotted not being exceeded.
* After December 31, 2024, the pool value at the Second Measurement Date is
reduced by the pool value from the First Measurement Date (increased in line
with share price movements between the First and Second Measurement Dates).
100% of the remaining pool value, if any, is delivered as restricted share
units under the RSU Plan.
* After December 31, 2025, the pool value at the Third Measurement Date is
reduced by the pool value from the Second Measurement Date (increased in line
with share price movements between the Second and Third Measurement Dates),
and then further reduced by the pool value from the First Measurement Date
(increased in line with share price movements between the First Measurement
Date and the Third Measurement Date). 100% of the remaining pool value, if
any, is delivered as restricted share units under the RSU Plan.
On August 14, 2024, the Corporation granted a new conditional award under a
separate RSU plan to the Corporation's newly appointed Chief Financial
Officer. This award entitles the participant to receive a 12% share of a pool
defined by the total shareholder value created above a 10% per annum compound
hurdle rate. Performance is measured from August 6, 2024, to the measurement
date on December 31, 2025 (note 13.2.4).
On December 19, 2024, the Corporation granted new RSUs to its employees. The
awards will vest on December 19, 2025, the one-year anniversary of the grant,
with all other terms governed by the RSU Plan.
13. STOCK-BASED COMPENSATION (CONT’D)
13.2.2 RSU Plan Amendment
The RSU Plan was amended by the Annual General Shareholders’ meeting on June
14, 2024. The approved amendments to the RSU Plan indicated that Investor
Relations Service Providers (as defined in the RSU Plan) cannot be granted any
RSUs. In addition, as the RSU Plan is a "rolling" plan, under Policy 4.4 of
the TSXV, a listed company on the TSXV is required to obtain the approval of
its Shareholders for a "rolling" plan at each annual meeting of Shareholders.
13.2.3 Conditional Award under RSU Plan 2023
On October 13, 2023, Amaroq made an award (the “Award”) under the RSU Plan
as detailed below. The Award consists of a conditional right to receive value
if the future performance targets, applicable to the Award, are met. Any value
to which the participants are eligible in respect of the Award will be granted
as Restricted Share Units (each an “RSU”), with each RSU entitling a
participant to receive common shares in the Corporation. Each RSU will be
granted under, and governed in accordance with, the rules of the Corporation's
Restricted Share Unit Plan.
Award Date October 13, 2023
Initial Price CAD 0.552
Hurdle Rate 10% p.a. above the Initial Price
Total Pool 10% of the growth in value above the Hurdle rate, not exceeding 10% of the Corporation’s share capital.
The number of shares will be determined at the Measurement Dates.
Participant proportion Edward Wyvill, Corporate Development, 10%
Performance Period January 1, 2022 to December 31, 2025 (inclusive)
Normal Measurement Dates First Measurement Date: December 31, 2023, 50% vesting on the first anniversary of grant, with the remaining 50% vesting on the third anniversary of grant.
Second Measurement Date: December 31, 2024, 50% vesting on the first anniversary of grant, with the remaining 50% vesting on the second anniversary of grant.
Third Measurement Date: December 31, 2025, vesting on the first anniversary of grant.
13.2.4 Conditional Award under RSU Plan 2024
On August 14, 2024, Amaroq made an award (the “Award”) under the RSU Plan
as detailed below. The Award consists of a conditional right to receive value
if the future performance targets, applicable to the Award, are met. Any value
to which the participants are eligible in respect of the Award will be granted
as Restricted Share Units (each an “RSU”), with each RSU entitling a
participant to receive common shares in the Corporation. Each RSU will be
granted under, and governed in accordance with, the rules of the Corporation's
Restricted Share Unit Plan.
13. STOCK-BASED COMPENSATION (CONT’D)
Award Date August 14, 2024
Initial Price CAD 1.04
Hurdle Rate 10% p.a. above the Initial Price
Total Pool 10% of the growth in value above the Hurdle rate, not exceeding 10% of the Corporation’s share capital.
The number of shares will be determined at the Measurement Date.
Participant proportion Ellert Arnarson, Chief Financial Officer, 12%
Performance Period August 6, 2024, to December 31, 2025 (inclusive)
Measurement Date December 31, 2025, vesting on the first anniversary of grant.
RSU Grant Date First quarter of 2026
RSU Vesting Date 100% of the shares will vest on the first anniversary of grant (first quarter of 2027)
13.2.5 Valuation
The fair value of the award granted in December 2022 and modified June 2023,
in addition to the award granted October 13, 2023, increased to $7,378,000
based on 90% of the available pool being awarded.
During June 2024, some of the awards were forfeited due to the departure of
Jaco Crouse, CFO of the Corporation, effective June 3, 2024. As a result of
the departure, previously recognised RSU award vesting charges of $566,875
were reversed and the percentage of the pool that was allocated was reduced to
70%.
During August 2024, new awards granted to the CFO increased the percentage of
the pool that was allocated to 82%.
A charge of $779,345 was recorded during the three months ended March 31,
2025, (a charge of $711,500 was recorded during the three months ended March
31, 2024).
The fair value was obtained through the use of a Monte Carlo simulation model
which calculates a fair value based on a large number of randomly generated
projections of the Corporation’s share price.
Assumption Value
Grant date December 30, 2022
Amendment date June 15, 2023
Additional award date October 13, 2023
Forfeiture of 20% of the awards date June 3, 2024
Additional award date August 14, 2024
Expected life (years) 1.38 – 3.00
Share price at grant date $0.70 - $1.02
Exercise price N/A
Dividend yield 0%
Risk-free rate 3.44% - 4.71%
Volatility 49.5% - 72%
Total fair value of awards (82% of pool) $6, 161 ,238
Expected volatility was determined from the daily share price volatility over
a historical period prior to the date of grant with length commensurate with
the expected life. A zero-dividend yield has been used based on the dividend
yield as at the date of grant.
13. STOCK-BASED COMPENSATION (CONT’D)
13.2.6 Awards under Restricted Share Unit Plan (the “RSU”)
Based on the results of the performance period ending on the First Measurement
Date pertaining to the 2022 and 2023 conditional RSU awards granted, and in
alignment with the RSU Plan dated 15 June 2023 (note 13.2), the Corporation
granted an award (the “Award”) on February 23, 2024 to directors and
employees of the Corporation as listed below.
Award Date February 23, 2024
Initial Price CAD 0.552
Hurdle Rate 10% p.a. above the Initial Price
Total Pool 10% of the growth in value above the Hurdle rate, not exceeding 10% of the Corporation’s share capital
The number of shares is determined at the Measurement Dates
Participant proportions and Number of shares Eldur Olafsson, CEO 40% 3,805,377 shares
subject to RSU
Jaco Crouse (1), CFO 20% 1,902,688 shares
Joan Plant, Executive VP 10% 951,344 shares
James Gilbertson, VP Exploration 10% 951,344 shares
Edward Wyvill, Corporate Development 10% 951,344 shares
First Measurement Date: 31 December 2023
50% of the Shares will vest on the first anniversary of grant, with the remaining 50% vesting on the third anniversary of grant.
(1)The shares awarded under the RSU to Jaco Crouse, CFO, have been forfeited
as a result of his departure effective June 3, 2024.
Based on the results of the performance period ending on the Second
Measurement Date, pertaining to the 2022 and 2023 conditional RSU awards
granted, and in alignment with the RSU Plan dated June 14, 2024 (note 13.2),
the Corporation granted an award (the “Award”) on February 12, 2025, to
directors and employees of the Corporation as listed below.
Award Date February 12, 2025
Initial Price CAD 0.552
Hurdle Rate 10% p.a. above the Initial Price
Total Pool 10% of the growth in value above the Hurdle rate, not exceeding 10% of the Corporation’s share capital
The number of shares is determined at the Measurement Dates
Participant proportions and Number of shares Eldur Olafsson, CEO 40% 2,048,268 shares
subject to RSU
Joan Plant, Executive VP 10% 512,067 shares
James Gilbertson, VP Exploration 10% 512,067 shares
Edward Wyvill, Corporate Development 10% 512,067 shares
First Measurement Date: 31 December 2024
50% of the Shares will vest on the first anniversary of grant, with the remaining 50% vesting on the third anniversary of grant.
14. EXPLORATION AND EVALUATION EXPENSES
Three months ended March 31,
2025 2024
$ $
Geology 3,273 13,997
Lodging and on-site support 1,673 184,469
Drilling 100,556 -
Analysis 38,348 5,033
Transport 14,137 -
Supplies and equipment 1,668 31,722
Maintenance infrastructure 229 480,754
Government fees 7,924 1,976
Exploration and evaluation expenses before depreciation 167,808 717,951
Depreciation 25,612 157,262
Exploration and evaluation expenses 193,420 875,213
15. GENERAL AND ADMINISTRATION
Three months ended March 31,
2025 2024
$ $
Salaries and benefits 1,137,057 869,415
Director’s fees 159,000 159,000
Professional fees 1,243,295 939,809
Marketing and investor relations 197,418 166,037
Insurance 108,905 78,916
Travel and other expenses 501,243 604,512
Regulatory fees 454,853 393,733
General and administration before following elements 3,801,771 3,211,422
Stock-based compensation (note 13) 779,345 712,306
Depreciation 45,205 35,498
General and administration 4,626,321 3,959,226
16. FINANCE COSTS
Three months ended March 31,
2025 2024
$ $
Lease interest 8,422 8,574
Accretion of discount on asset retirement obligation 302,812 -
Other finance costs 141,039 -
452,273 8,574
17. RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT COMPENSATION
17.1 Gardaq Joint Venture
Three months
ended March 31,
2025 2024
$ $
Gardaq management fees and allocated cost 643,553 636,326
Other allocated costs (359) 35,898
Foreign exchange revaluation 502 6,217
643,696 678,441
As at March 31, 2025, the balance receivable from Gardaq amounted to
$7,342,875 ($6,699,179 as at December 31, 2024). This receivable balance
represents allocated overhead and general administration costs to manage the
exploration work programmes and day-to-day activities of the joint venture.
This balance will be converted to shares in Gardaq within 10 business days
after the third anniversary of the completion of the Subscription and
Shareholder Agreement dated April 13, 2023 (See note 6.1).
17.2 Key Management Compensation
The Corporation’s key management are the members of the board of directors,
the President and Chief Executive Officer, the Chief Financial Officer, the
Vice President Exploration, and the Executive Vice President. Key management
compensation is as follows:
Three months
ended March 31,
2025 2024
$ $
Short-term benefits
Salaries and benefits 451,219 445,723
Director’s fees 159,000 159,000
Long-term benefits
Stock-based compensation - 806
Stock-based compensation - RSU 302,825 551,500
Total compensation 913,044 1,157,029
18. LOSS PER SHARE
The calculation of loss per share is shown in the table below. As a result of
the loss incurred during the periods presented, all potentially dilutive
common shares are deemed to be antidilutive and thus diluted loss per share is
equal to the basic loss per share for these periods.
Three months
ended March 31,
2025 2024
$ $
Net loss and comprehensive loss (4,398,697) (9,217,515)
Weighted average number of common shares outstanding - basic 397,704,035 290,574,484
Weighted average number of common shares outstanding – diluted 397,704,035 290,574,484
Basic loss per share (0.011) (0.03)
Diluted loss per common share (0.011) (0.03)
19. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Corporation is exposed to various risks through its financial instruments.
The following analysis provides a summary of the Corporation's exposure to and
concentrations of risk at March 31, 2025:
19.1 Credit Risk
Credit risk is the risk that one party to a financial instrument will cause
financial loss for the other party by failing to discharge an obligation. The
Corporation’s main credit risk relates to its prepaid amounts to suppliers
for placing orders, manufacturing and delivery of process plant equipment, as
well as an advance payment to a mining contractor. The Corporation performed
expected credit loss assessment and assessed the amounts to be fully
recoverable.
19.2 Fair Value
Financial assets and liabilities recognized or disclosed at fair value are
classified in the fair value hierarchy based upon the nature of the inputs
used in the determination of fair value. The levels of the fair value
hierarchy are:
* Level 1 - Quoted prices (unadjusted) in active markets for identical assets
or liabilities
* Level 2 - Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices)
* Level 3 - Inputs for the asset or liability that are not based on observable
market data (i.e., unobservable inputs)
The following table summarizes the carrying value of the Corporation’s
financial instruments:
March 31, December 31, 2024
2025
$ $
Cash 16,698,642 45,193,670
Deposit 178,088 181,871
Interest receivable 15,938 114,064
Financial Asset – Related Party 7,342,875 6,699,179
Accounts payable and accrued liabilities (17,001,214) (18,233,113)
Loans payable (29,801,922) (28,621,732)
Lease liabilities (176,529) (710,713)
Due to the short-term maturities of cash, financial asset – related party,
and accounts payable and accrued liabilities, the carrying amounts of these
financial instruments approximate fair value at the respective balance sheet
date.
The carrying value of the loans payable approximate its fair value as the
loans were entered into towards the end of the financial year.
The carrying value of lease liabilities approximate its fair value based upon
a discounted cash flows method using a discount rate that reflects the
Corporation’s borrowing rate at the end of the period.
19.3 Liquidity Risk
Liquidity risk is the risk that the Corporation will encounter difficulty in
meeting obligations associated with financial liabilities. The Corporation
seeks to ensure that it has sufficient capital to meet short-term financial
obligations after taking into account its exploration and operating
obligations and cash on hand. On December 30, 2024, the Corporation closed a
new USD$35 million revolving credit facility with Landsbankinn that will
eventually refinance its existing loans payable, fund general and
administrative costs, exploration and evaluation costs and Nalunaq project
development costs (note 10.3). The Corporation’s options to enhance
liquidity include the issuance of new equity instruments or debt.
19. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONT’D)
The following table summarizes the carrying amounts and contractual maturities
of financial liabilities:
As at March 31, 2025 As at December 31, 2024
Accounts payable and accrued liabilities Loan payable Lease liabilities Accounts payable and accrued liabilities Loan payable Lease liabilities
$ $ $ $ $ $
Within 1 year 17,001,214 29,801,922 97,829 18,233,113 28,621,732 150,850
1 to 5 years - - 88,870 - - 535,028
5 to 10 years - - - - - 126,975
Total 17,001,214 29,801,922 186,699 18,233,113 28,621,732 812,853
The Corporation has assessed that it is not exposed to significant liquidity
risk due to its cash balance in the amount of $16,698,642 and the availability
of undrawn credit facilities at the end of the periodRecent news on Amaroq Minerals
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