REG - Amaroq Minerals Ltd - Q2 Financial Results and Operational Update
25/08/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220825:nRSY1433Xa&default-theme=true
RNS Number : 1433X Amaroq Minerals Ltd 25 August 2022
AMAROQ Minerals - Q2 Financial Results and Operational Update
TORONTO, ONTARIO - August 25(th)- 2022 - Amaroq Minerals Ltd. ("Amaroq" or the
"Company" or the "Corporation") (AIM, TSXV: AMRQ), the independent mining
company with an unrivalled land package of gold and strategic mineral assets
covering an area of 7,866.85 km(2) in Southern Greenland, is pleased to
provide an update on its Q2 financials and operational activities in the first
half of 2022.
H1 2022 highlights
Precious Metals targets
· Nalunaq: Construction of mountain access roads required to
facilitate the 2022 core drilling programme completed ahead of schedule and
under budget.
· Nalunaq: Drilling ahead of schedule with 7,300m of core drilling
out of a scheduled 9,100m completed across the Valley Block with geological
logging and sampling now underway. 2022 drilling focused on providing further
resource confidence with a view to increasing the Mineral Resource Estimate
(MRE) in due course.
· Nalunaq: Preliminary Economic Assessment (PEA) commenced to
assess bulk sample and eventual mine re-opening optionality.
· Vagar Ridge: Exploration aimed at understanding the styles and
geological controls on mineralisation continues, with 65% of planned core
drilling now complete despite unseasonal weather during the period, targeting
both Orogenic gold and Intrusion Related Gold mineralisation.
· Vagar Licence: Further geological mapping and sampling across new
targets identified by the 2021 exploration programme scheduled for later in
the season.
· Nanoq: Contractors are mobilising to conduct an airborne
geophysical survey across the target, and along an interpreted 20km structural
corridor linking the discovery to the Jokum's Shear gold/copper occurrence.
This area is now held by Amaroq under the newly acquired Siku licence securing
access to multiple potential Orogenic gold targets.
Strategic Mineral Targets
· Sava: A 320m maiden scout core drilling programme to test Iron
Oxide, Copper, Gold (IOCG) mineralisation has targeted two areas and samples
are due to be dispatched to ALS Geochemistry imminently.
· North Sava: Contractors are mobilising to conduct an airborne
geophysical survey across North Sava to extend geological understanding from
Sava into the former Orano licence.
· Stendalen: Amaroq is in negotiations to conduct an MT geophysical
survey across this Iron-Vanadium-Titanium layered intrusive with additional
Nickel and Copper potential.
· Regional: Further geological reconnaissance and sampling across
the Eagle's Nest gold target, Kobbermineburgt copper targets and the Paatusoq
Rare Earth target are scheduled for later in the 2022 season.
Operational Update
· Further investment in operational infrastructure and equipment
upgrades. With the 50 person all-weather camp in place at Nalunaq and a
satellite field camp in situ at Vagar Ridge, the Company is now able to
function more efficiently and to shorter operational lead-times. The ALS
on-site Containerised Preparation Laboratory (CPL) has been installed and
commissioned with the first samples being dispatched.
· Operational efficiency across all aspects of the Company's
Greenland assets significantly increased through key longer term contracts
with carefully selected service providers.
Corporate Update
· Significant 3,527.75 km(2) mineral licence area has been acquired
from Orano substantially increasing the Company's exposure to Base and
Strategic Minerals. When coupled with the newly awarded 251 km(2) Siku
licence, takes Amaroq's total land package in South Greenland to
7,866.85km(2).
· Establishment of non-binding Joint Venture agreement with ACAM LP
for the exploration and development of Amaroq's Strategic Mineral assets for a
combined contribution of £36.7 million with initial equity funding of £18
million following completion.
· Cash balance of $19.5 at June 30, 2022.
· Approval of special resolution to change the name of the Company
to Amaroq Minerals Ltd.
Eldur Olafsson, CEO of Amaroq Minerals, commented:
"I am pleased to present an update on our activities for Q2 2022. Our field
season for 2022 is well underway and we are making solid progress with our
drilling programmes at Nalunaq, Vagar Ridge and Sava. We expect to share the
results from this programme with the market in late Q3 to Q4.
We are progressing with our strategic mineral exploration programme in
Southern Greenland with the support of our partners. We remain focused on
accelerating Greenland's contribution to the energy transition as a frontier
jurisdiction at a time when access to these critical minerals for Western
Governments and companies is limited by Chinese and Russian control of supply.
We continue to invest in our highly qualified senior management team, as well
as selecting strong and reliable partners for contract appointments. In
addition, we are now benefitting from considerably upgraded corporate
governance systems and a strengthened Board, which continues to guide the
strategic vision of our business."
Precious Metals 2022 Exploration Programme:
Nalunaq
· The 2022 exploration programme is targeting further resource
development through both infill and strike extension drilling across the
Valley Block, informed by the Dolerite Dyke Model developed and tested in
2021.
· Two new mountain access roads to facilitate the extension
drilling have been completed ahead of schedule and under budget (totalling
$0.74m) and now are being utilised by two core drill rigs.
· To date approximately 7,300m of core (2,600m infill and 4,700m
extension) drilling has been completed and geological logging and sampling is
now underway. A further 1,800m of core drilling is scheduled for 2022.
· ALS has completed the construction and commissioned an on-site
Containerised Preparation Laboratory (CPL) at Nalunaq to oversee the
preparation of all samples ahead of shipment to Ireland for chemical assaying.
· Amaroq geological teams have re-entered the historic mine to
assess the extension opportunities within the Mountain Block and have
identified further surface outcrops of the Main Vein, which they intend to
channel sample during this season to further define this extension area.
· Amaroq has continued to work with SRK to adapt the MRE procedures
to account for the Dolerite Dyke Model and the 2020 and 2021 drilling results
with the aim of providing a further update to the contained resources later in
2022.
· A PEA for the project to assess bulk sample and eventual mine
re-opening optionality has been commenced.
· Subject to results from the 2022 exploration programme, Amaroq
will continue to assess additional underground infrastructure and underground
bulk sample options for 2023, which may include off-site toll treatment,
subject to discussions with the Government of Greenland. This would be used as
a development step to increase resource confidence and de-risk the resource
ahead of potential mine construction in 2024/2025.
· The Corporation remains in discussion with mine development
contractors in order to mitigate programme delays, as the industry average
lead time today is 12 months.
· The Company is in the process of updating its Environmental
Impact Assessment (EIA) and Social Impact Assessment (SIA), which as
previously announced it expects to complete over the course of the next year.
Vagar Ridge
· Following the exploration conducted in 2021, which significantly
increased the Vagar Ridge footprint, Amaroq have commenced an approximately
2,000m core drilling programme across the target to further understand its
scale and geological controls on mineralisation as a necessary step towards
defining potential resources.
· At the time of reporting, approximately 1,300m has been drilled
across four drillholes with geological logging and sampling in progress.
· Geological reconnaissance and mapping is also underway over the
area, and Amaroq aims to supplement the drilling with a chip channel sampling
programme across the southern low grade granite hosted areas of Vagar Ridge.
· Unseasonal low cloud and sea fog in the last month has hampered
helicopter availability, a supply and health and safety requirement for
drilling in this remote location. This has slowed drilling and delayed
completion of the programme. Amaroq is looking to reduce the impact of this by
deploying a remote tented camp on site.
· Amaroq is utilising its experience and strong regional
understanding of South Greenland to progress with drilling and gain a fuller
understanding of the targets, and intends to update the market on developments
in due course.
Vagar Licence Targets
· Due to the unseasonal weather, Amaroq has not yet commenced the
planned regional investigation of the target areas developed following the
interpretation of the 2021 geophysical programme, which defined a significant
deformation zone that extends for more than 50km across the Vagar licence and
into Amaroq's neighbouring licences. This is currently scheduled for later in
September.
Nanoq Gold
· Amaroq's geophysical contractor New Resolution Geophysics (NRG)
began mobilising helicopter and equipment to Southern Greenland on 22(nd)
August and plans to commence an approximately 4,500 line km magnetic,
radiometric and gravity survey over the Nanoq target and the area connecting
this target to Jokum's Shear in the Nanortalik gold belt.
· This area (located within the Corporation's newly awarded
251km(2) Siku mineral licence) hosts an interpreted 20km long regional
structure that could host multiple Orogenic gold targets.
Eagle's Nest
· Following an assessment of the 2021 exploration results in the
area, which are still being analysed, the Company intends to continue its
early stage geological reconnaissance mapping and sampling aimed at making
further Orogenic gold discoveries north of Nalunaq.
· This field work is provisionally scheduled for mid-September.
Strategic Mineral Targets 2022 Exploration Work Programme:
General
· Significant 3,527.75 km(2) mineral licence area has been acquired
from Orano, which, with the newly awarded Siku licences, takes Amaroq's total
land package in South Greenland to 7,866.85km(2) and substantially increasing
the Company's exposure to Base and Strategic Minerals. The acquisition means
the Company will become the largest licence holder in South Greenland, and the
third largest in Greenland, after Anglo American and Greenfields Exploration.
· Amaroq's ongoing Mineral System Modelling highlights the
potential of Southern Greenland to host significant strategic metal deposits.
These new licences sit within an interpreted Laurasian Mineral Belt connecting
Eastern Canada through Greenland to Scandinavia that hosts World Class mineral
deposits such as Voisey's Bay (Canada), Gardar Province (Greenland), and the
Kiruna IOCG belt (Scandinavia). Work programmes at Sava have illustrated Iron
Ore, Copper, Gold ("IOCG") style signatures across three target areas.
Sava and North Sava
· Following the successful 2021 season, which identified three
initial priority targets across the Sava IOCG and Porphyry Copper licence,
Amaroq has completed a 320m scout core drilling programme over two drillholes
on Targets West and Target South.
· These samples have subsequently been prepared in the ALS CPL at
Nalunaq and are awaiting dispatch to Ireland for chemical assaying.
· A further sample has been sent to Durham University for
geological age dating to assess if the observed mineralisation is related to
the Gardar Intrusion suite that host the significant deposits at Kavanefjeld
and Tanbreez.
· The Amaroq geological team has also conducted further surface
exploration and sampling aimed at expanding the current targets and defining
further targets for future investigation.
· Building upon previous Orano geological interpretations, Amaroq
intends to conduct a similar geophysical survey to that completed over Sava
across the newly acquired North Sava licence. This approximately 5,000 line km
programme will be conducted by NRG following completion of the Nanoq survey.
· Multiple zones of veining and brecciation have been discovered
containing Copper Iron Sulphide mineralisation including chalcopyrite and
bornite mapped at surface at Sava, giving further evidence of IOCG occurrence.
The Stendalen Iron-Vanadium-Titanium layered intrusive
· Previously explored by GEUS, Softrock Mineral and NunaMineral
A/S. This intrusive is 8km in diameter and hosts a magnetic layer up to 20m
thick which has provided historical samples yielding between 1-10.5% Titanium
Dioxide (TiO(2)) (average of 4.8%) and 226-5,753ppm Vanadium (V) (average
2,335ppm).
· Stendalen also hosts potential for Nickel (Ni), Copper (Cu) and
Platinum Group Element (PGE) mineralisation with grab samples proving grades
of 0.8% Copper (Cu), 0.5% Nickel (Ni) and 0.1% Cobalt (Co).
· The Company is in negotiations to conduct an airborne geophysical
(MT) survey over the intrusion in order to understand its scale, structure and
potential for deep sulphide mineralisation signatures. This survey will be
coupled with a ground assessment of the reported Ni/Cu sulphide mineralisation
in the contact areas of the intrusion. Finally, the Company will assess drill
locations and site logistics ahead of a core drilling programme in 2023
subject to results.
The Paatusoq Rare Earth Element, Niobium, Tantalum, Zirconium project
· This syenite complex is 20 km in diameter covering an area of
~240 km(2) within an unexplored section of the Gardar Province.
· Amaroq plans to visit this new critical metals target within the
licences acquired from Orano during a regional exploration programme in
September. The aim of this will be to conduct additional geochemical sampling
to test the styles of mineralisation and its relationship to the wider Gardar
Province that also hosts the Kvanefjeld and Tanbreez rare earth projects.
Amaroq Minerals Infrastructure support
· Amaroq has successfully continued the use of its all-weather
50-person camp as well as operating a small satellite tented camp at Vagar
Ridge to facilitate drilling there.
· Since June, Amaroq has been operating with four drill rigs across
three sites and the Company is now assessing rig requirements for 2023.
· The Company has also finalised contracts with ALS Geochemistry to
install the Containerised Preparation Laboratory (CPL) at Nalunaq, which has
been fully installed and commissioned.
· Amaroq is experiencing material increases in its operational
efficiency during the 2022 season as a result of partnering with key,
carefully selected, contractors across its Greenland business. This has
resulted in programme objectives being meet ahead of schedule, increased
drilling rates, greater logistical flexibility and aims to result in quicker
return on sample results through the second half of 2022.
Amaroq Minerals Financial Results
· The Corporation had a cash balance of $19.5 million at June 30,
2022 ($23.8 million at March 31, 2022), with no debt, and total working
capital of $16.8 million ($22.6 million at March 31, 2022).
· Exploration and evaluation expenses during the period were $5.4
million (Q2 2021: $3.2 million), predominantly on the Nalunaq Property.
· General and administrative expenses during the period were $5.1
million (Q2 2021: $4.0 million).
Selected Financial Information
The following selected financial data is extracted from the Financial
Statements for the six months ended June 30, 2022.
Financial Results
Six months
ended June 30,
2022 2021
$ $
Exploration and evaluation expenses 5,435,831 3,245,196
General and administrative 5,086,708 4,038,649
Net loss and comprehensive loss (10,460,137) (7,866,015)
Basic and diluted loss per common share (0.06) (0.04)
Financial Position
As at June 30, 2022 As at December 31, 2021
$ $
Cash on hand 19,494,000 27,324,459
Total assets 34,618,121 42,781,664
Total current liabilities 2,880,555 2,100,084
Shareholders' equity 31,043,925 39,968,502
Working capital 16,678,108 25,542,242
Enquiries:
Amaroq Minerals ltd.
Eldur Olafsson, Director and CEO
+354 665 2003
eo@amaroqminerals.com (mailto:eo@amaroqminerals.com)
Eddie Wyvill, Investor Relations
+44 (0) 7713 126727
ew@amaroqminerals.com (mailto:ew@amaroqminerals.com)
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)
Callum Stewart
Simon Mensley
Ashton Clanfield
+44 (0) 20 7710 7600
Panmure Gordon (UK) Limited (Joint Broker)
John Prior
Hugh Rich
Dougie Mcleod
+44 (0) 20 7886 2500
SI Capital Limited (Joint Broker)
Nick Emerson
Charlie Stephenson
+44 (0) 1483 413500
Camarco (Financial PR)
Billy Clegg
Elfie Kent
Charlie Dingwall
+44 (0) 20 3757 4980
For Company updates:
Follow @Amaroqminerals on Twitter
Follow Amaroq Minerals Inc. on LinkedIn
Amaroq Minerals Ltd: Unaudited Condensed Interim Consolidated Financial
Statements for the Three Months Ended June 30, 2022
Consolidated Statements of Financial Position
(Unaudited, in Canadian Dollars)
As at As at December 31,
June 30,
Notes 2022 2021
$ $
ASSETS
Current assets
Cash 19,494,000 27,324,459
Sales tax receivable 84,429 51,250
Prepaid expenses and others 84,234 266,617
Total current assets 19,662,663 27,642,326
Non-current assets
Deposit 27,944 9,805
Escrow account for environmental monitoring 397,115 424,637
Mineral properties 3 62,244 62,244
Capital assets 4 14,468,155 14,642,652
Total non-current assets 14,955,458 15,139,338
TOTAL ASSETS 34,618,121 42,781,664
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 2,810,526 2,049,249
Lease liabilities - current portion 5 70,029 50,835
Total current liabilities 2,880,555 2,100,084
Non-current liabilities
Lease liabilities 5 693,641 713,078
Total non-current liabilities 693,641 713,078
Total liabilities 3,574,196 2,813,162
Equity
Capital stock 88,595,905 88,500,205
Contributed surplus 4,740,583 3,300,723
Accumulated other comprehensive loss (36,772) (36,772)
Deficit (62,255,791) (51,795,654)
Total equity 31,043,925 39,968,502
TOTAL LIABILITIES AND EQUITY 34,618,121 42,781,664
The accompanying notes are an integral part of these unaudited condensed
interim consolidated financial statements.
Consolidated Statements of Comprehensive Loss
(Unaudited, in Canadian Dollars)
Three months Six months
ended June 30, ended June 30,
Notes 2022 2021 2022 2021
Expenses
Exploration and evaluation expenses 7 4,425,501 1,998,049 5,435,831 3,245,196
General and administrative 8 2,097,937 2,453,578 5,086,708 4,038,649
Foreign exchange loss (gain) (173,880) 157,092 (26,693) 647,691
Operating loss 6,349,558 4,608,719 10,495,846 7,931,536
Other expenses (income)
Interest income (34,392) (41,859) (54,717) (85,929)
Finance costs 9,473 10,103 19,008 20,408
Net loss and comprehensive loss (6,324,639) (4,576,963) (10,460,137) (7,866,015)
Weighted average number of common shares outstanding - basic and 177,109,616 177,098,737 177,104,206 177,098,737
diluted
Basic and diluted loss per common share (0.04) (0.03) (0.06) (0.04)
The accompanying notes are an integral part of these unaudited condensed
interim consolidated financial statements.
Consolidated Statements of Changes in Equity
(Unaudited, in Canadian Dollars)
Number of common shares Capital Contributed surplus Accumulated other comprehensive loss Deficit Total
outstanding Stock Equity
$ $ $ $ $
Balance at January 1, 2021 177,098,737 88,500,205 2,925,952 (36,772) (27,106,415) 64,282,970
Net loss and comprehensive loss - - - - (7,866,015) (7,866,015)
Stock-based compensation - - 360,000 - - 360,000
Balance at June 30, 2021 177,098,737 88,500,205 3,285,952 (36,772) (34,972,430) 56,776,955
Balance at January 1, 2022 177,098,737 88,500,205 3,300,723 (36,772) (51,795,654) 39,968,502
Net loss and comprehensive loss - - - - (10,460,137) (10,460,137)
Options exercised 110,000 95,700 (40,700) - - 55,000
Stock-based compensation - - 1,480,560 - - 1,480,560
Balance at June 30, 2022 177,208,737 88,595,905 4,740,583 (36,772) (62,255,791) 31,043,925
The accompanying notes are an integral part of these unaudited condensed
interim consolidated financial statements.
Consolidated Statements of Cash Flows
(Unaudited, in Canadian Dollars)
Notes Six months
ended June 30,
2022 2021
$ $
Operating activities
Net loss for the period (10,460,137) (7,866,015)
Adjustments for:
Depreciation 4 418,075 143,723
Stock-based compensation 1,480,560 360,000
Other expenses (income) 9,048 -
Foreign exchange (13,571) 644,430
(8,566,025) (6,717,862)
Changes in non-cash working capital items:
Sales tax receivable (33,179) (1,732)
Prepaid expenses and others 182,383 280,536
Trade and other payables 815,210 231,188
964,414 509,992
Cash flow used in operating activities (7,601,611) (6,207,870)
Investing activities
Acquisition of capital assets 4 (301,958) (2,084,161)
Deposit on order - (3,474,030)
Cash flow used in investing activities (301,958) (5,558,191)
Financing activities
Principal repayment - lease liabilities 5 (22,551) (32,539)
Exercise of stock options 55,000 -
Cash flow from financing activities 32,449 (32,539)
Net change in cash before effects of exchange rate changes on cash (7,871,120) (11,798,600)
during the period
Effects of exchange rate changes on cash 40,661 (482,763)
Net change in cash during the period (7,830,459) (12,281,363)
Cash, beginning of period 27,324,459 61,874,999
Cash, end of period 19,494,000 49,593,636
Supplemental cash flow information
Interest received 54,717 85,929
Exercise of stock options credited to capital stock 40,700 -
The accompanying notes are an integral part of these unaudited condensed
interim consolidated financial statements.
Condensed Notes to the interim Consolidated Financial Statements
Three and six months ended June 30, 2022 and 2021
(Unaudited, in Canadian Dollars)
NATURE OF OPERATIONS, BASIS OF PRESENTATION
Amaroq Minerals Ltd. (the "Corporation") (previously known as AEX Gold Inc.)
was incorporated on February 22, 2017, under the Canada Business Corporations
Act. The Corporation's head office is situated at 3400, One First Canadian
Place, P.O. Box 130, 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") under the AMRQ ticker and since July 2020, the Corporation's shares
are also listed on the AIM market of the London Stock Exchange ("AIM") under
the AMRQ ticker.
These unaudited condensed interim consolidated financial statements for the
three and six months ended June 30, 2022 ("Financial Statements") were
approved by the Board of Directors on August 24, 2022.
1.1 Basis of presentation
The Financial Statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") as issued by the International
Accounting Standards Board ("IASB") including International Accounting
Standard ("IAS") 34, Interim Financial Reporting. The Financial Statements
have been prepared under the historical cost convention.
The Financial Statements should be read in conjunction with the annual
financial statements for the year ended December 31, 2021 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, 2021.
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.
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, 2021. Estimates and assumptions are continually evaluated and are based
on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
3. MINERAL PROPERTIES
As at December 31, 2021 Additions As at
June 30,
2022
$ $ $
Nalunaq 1 - 1
Tartoq 18,431 - 18,431
Vagar 11,103 - 11,103
Naalagaaffiup Portornga 6,334 - 6,334
Nuna Nutaaq 6,076 - 6,076
Saarloq 7,348 - 7,348
Anoritooq 6,389 - 6,389
Sava 6,562 - 6,562
Total mineral properties 62,244 - 62,244
As at December 31, 2020 Additions As at
December 31,
2021
$ $ $
Nalunaq 1 - 1
Tartoq 18,431 - 18,431
Vagar 11,103 - 11,103
Naalagaaffiup Portornga 6,334 - 6,334
Nuna Nutaaq 6,076 - 6,076
Saarloq 7,348 - 7,348
Anoritooq 6,389 - 6,389
Sava 6,562 - 6,562
Total mineral properties 62,244 - 62,244
4. CAPITAL ASSETS
Field equipment and infrastruc- ture Vehicles and rolling stock Equipment (including software) Construc-tion In Progress Right-of-use assets Total
$ $ $ $ $ $
Six months ended June 30, 2022
Opening net book value 1,989,114 4,304,709 156,011 7,452,668 740,150 14,642,652
Additions - - 179,041 69,417 - 248,458
Adjustment - - - - (4,880) (4,880)
Depreciation (129,183) (219,223) (29,895) - (39,774) (418,075)
Closing net book value 1,859,931 4,085,486 305,157 7,522,085 695,496 14,468,155
As at June 30, 2022
Cost 2,351,041 4,605,320 364,919 7,522,085 836,200 15,679,565
Accumulated depreciation (491,110) (519,834) (59,762) - (140,704) (1,211,410)
Closing net book value 1,859,931 4,085,486 305,157 7,522,085 695,496 14,468,155
4. 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 $363,461 ($98,632 for the six months ended June 30, 2021) was expensed as
exploration and evaluation expenses during the six months ended June 30, 2022.
As at June 30, 2022, the Corporation had capital asset purchase commitments,
net of deposit on order, of $nil ($6,030,167 as at June 30, 2021). These
commitments related to purchases of equipment, infrastructure and vehicles.
As of June 30, 2022, the amount of $7,522,085 of construction in progress is
related to equipment and infrastructure received or in storage and which will
be installed at the appropriate time. Equipment and infrastructure include
process plant components that are not yet available for use.
5. LEASE LIABILITIES
As at
June 30
2022
$
Balance beginning 763,913
Principal repayment (22,551)
Adjustment 22,308
Balance ending 763,670
Non-current portion - lease liabilities (693,641)
Current portion - lease liabilities 70,029
6. STOCK OPTIONS
An incentive stock option plan (the "Plan") was approved initially in 2017 and
renewed by shareholders on June 16, 2022. 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 grants 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 January 17, 2022, the Corporation granted its officers, employees and
consultant 4,100,000 stock options with an exercise price of $0.60 and expiry
date of January 17, 2027. The stock options vested 100% at the grant date.
The options were granted at an exercise price equal to the closing market
price of the shares the day prior to the grant. Total stock-based compensation
costs amount to $1,435,000 for an estimated fair value of $0.35 per option.
The fair value of the options granted was estimated using the Black-Scholes
model with no expected dividend yield, 69.38% expected volatility, 1.51%
risk-free interest rate and a 5-year term. The expected life and expected
volatility were estimated by benchmarking comparable companies to the
Corporation.
6. STOCK OPTIONS (CONT'D)
On April 20, 2022, the Corporation granted a senior employee 73,333 stock
options with an exercise price of $0.75 and expiry date of April 20, 2027.
The stock options vested 100% at the grant date. The options were granted with
an exercise price equal to the closing market price of the shares the day
prior to the grant. Total stock-based compensation costs amount to $32,267 for
an estimated fair value of $0.44 per option. The fair value of the options
granted was estimated using the Black-Scholes model with no expected dividend
yield, 68.9% expected volatility, 2.7% risk-free interest rate and a 5-year
term. The expected life and expected volatility were estimated by benchmarking
comparable companies to the Corporation.
Changes in stock options are as follows:
Six months ended
June 30, 2022
Number of options Weighted average exercise price
$
Balance, beginning 6,935,000 0.51
Granted 4,173,333 0.60
Exercised (110,000) 0.50
Balance, end 10,998,333 0.55
Balance, end exercisable 10,865,000 0.55
Stock options outstanding and exercisable as at June 30, 2022 are as follows:
Number of options outstanding Number of options exercisable Exercise Expiry date
price
$
1,050,000 1,050,000 0.50 July 13, 2022 (expired)
1,360,000 1,360,000 0.45 August 22, 2023
1,820,000 1,820,000 0.38 December 31, 2025
100,000 33,333 0.50 July 5, 2026
100,000 33,333 0.50 September 13, 2026
1,495,000 1,495,000 0.70 December 31, 2026
4,100,000 4,100,000 0.60 January 17, 2027
900,000 900,000 0.59 December 31, 2027
73,333 73,333 0.75 April 20, 2027
10,998,333 10,864,999
7. EXPLORATION AND EVALUATION EXPENSES
Three months Six months
ended June 30, ended June 30,
2022 2021 2022 2021
$ $ $ $
Geology 651,211 562,416 805.632 705,954
Lodging and on-site support 35,255 64,523 35,255 64,523
Underground work - 18,588 - 18,589
Drilling 1,250,066 287,760 1,290,527 287,760
Analysis - 5,362 141,382 84,581
Transport 54,076 21,455 143,215 22,413
Supplies and equipment 360,158 - 360,158 -
Helicopter charter 442,824 109,024 442,824 109,024
Logistic support 90,356 64,913 102,108 86,114
Insurance (13,200) 45 - 8,707
Maintenance infrastructure 1,373,127 - 1,743,375 -
Project Engineering costs - 804,267 - 1,736,133
Government fees - 10,380 7,894 22,766
Depreciation 181,628 49,316 363,461 98,632
Exploration and evaluation expenses 4,425,501 1,998,049 5,435,831 3,245,196
8. GENERAL AND ADMINISTRATION
Three months Six months
ended June 30, ended June 30,
2022 2021 2022 2021
$ $ $ $
Salaries and benefits 601,769 667,453 1,241,768 1,054,961
Stock-based compensation 36,698 360,000 1,480,560 360,000
Director's fees 157,000 116,879 314,000 236,379
Professional fees 748,904 690,594 1,024,612 1,246,949
Marketing and industry involvement 133,811 190,609 302,678 356,332
Insurance 104,651 148,377 205,670 266,342
Travel and other expenses 238,656 172,156 384,571 302,365
Regulatory fees 43,971 84,965 78,235 170,230
Depreciation 32,477 22,545 54,614 45,091
General and administration 2,097,937 2,453,578 5,086,708 4,038,649
9. SUBSEQUENT EVENTS
9.1 Options granted
On July 14, 2022, the Corporation granted an employee 39,062 stock options
with an exercise price of $0.64 and expiry date of July 14, 2027. The stock
options vested 100% at the grant date. The options were granted with an
exercise price equal to the closing market price of the shares the day prior
to the grant.
9.2 Acquisition of Significant Strategic Mineral Land Package in South
Greenland
On May 12, 2022, the Corporation announced that it has acquired mineral
exploration licences No. 2020-41 and 2021-11 (the "Licences") covering areas
in South Greenland from Orano Group ("Orano") for zero upfront consideration
but in exchange for a 0.5% contractual, gross revenue royalty (GRR), based on
potential future sales of minerals exploited on the licences. The GRR is paid
annually and capped at US$10 million ("Royalties Cap"). The Royalties Cap is
subject to an annual inflation adjustment, with an ultimate cap limited to the
current market capitalisation of the Corporation. Orano has a right of first
refusal on any sales or transfer of licenses. The acquisition is subject to
approval from the Greenland Government.
9.3 ACAM LP To Invest Upfront Capital in Strategic Mineral Asset Joint
Venture with Amaroq
On June 10, 2022, the Corporation announced that it has now signed a
non-binding head of terms with ACAM LP ("ACAM") to establish a special purpose
vehicle (the "SPV") and create a joint venture (the "JV") for the exploration
and development of its Strategic Mineral assets for a combined contribution of
GBP36.7 million (circa $58.0 million). Subject to negotiation of the final
terms of the JV, ACAM will invest GBP18.0 million (circa $28.5 million) in
exchange for a 49% shareholding in the SPV, with Amaroq holding 51%. Amaroq is
expected to contribute its Strategic non-precious Mineral (i.e. non-gold)
licences as well as a contribution in kind, valued, in aggregate, at GBP18.7
million (circa $29.5 million) in the form of site support, logistics and
overhead costs associated with utilizing its existing infrastructure in
Southern Greenland to support the JV's activities. The transfer of these
licences is subject to approval from the Greenland Government. An option for
further future funding of GBP10.0 million (circa $16.0 million) is to be
available on the achievement of agreed milestones.
Further Information:
About Amaroq Minerals
Amaroq Minerals' principal business objectives are the identification,
acquisition, exploration, and development of gold and strategic metal
properties in Greenland. The Company's principal asset is a 100% interest in
the Nalunaq Project, an advanced exploration stage property with an
exploitation license including the previously operating Nalunaq gold mine. The
Corporation has a portfolio of gold and strategic metal assets
covering 7,615.85km(2), the largest mineral portfolio in Southern Greenland
covering the two known gold belts in the region. Amaroq Minerals is
incorporated under the Canada Business Corporations Act and wholly owns
Nalunaq A/S, incorporated under the Greenland Public Companies Act.
Forward-Looking Information
This press release contains forward-looking information within the meaning of
applicable securities legislation, which reflects the Company's current
expectations regarding future events and the future growth of the Company's
business. In this press release there is forward-looking information based on
a number of assumptions and subject to a number of risks and uncertainties,
many of which are beyond the Company's control, that could cause actual
results and events to differ materially from those that are disclosed in or
implied by such forward-looking information. Such risks and uncertainties
include but are not limited to the factors discussed under "Risk Factors" in
the Final Prospectus available under the Company's profile on SEDAR at
www.sedar.com. Any forward-looking information included in this press release
is based only on information currently available to the Company and speaks
only as of the date on which it is made. Except as required by applicable
securities laws, the Company assumes no obligation to update or revise any
forward-looking information to reflect new circumstances or events. No
securities regulatory authority has either approved or disapproved of the
contents of this press release. 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.
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END UPDBKQBBFBKDCFBRecent news on Amaroq Minerals
See all newsREG-Update on Market Making Arrangements
AnnouncementREG-Block Listing Six Monthly Return and Holding(s) in Company
AnnouncementREG - AIM - AIM Notice - 14/04/2025
AnnouncementRCS - Amaroq Minerals Ltd - New Episode of South Greenland Mining Documentary
AnnouncementREG - AIM - AIM Notice - 17/12/2024
Announcement