REG - Cornish Metals Inc. - UNAUDITED FINANCIAL STATEMENTS AND MD&A
29/09/2023 07:00
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RNS Number : 0802O Cornish Metals Inc. 29 September 2023
CORNISH METALS RELEASES UNAUDITED FINANCIAL STATEMENTS AND MANAGEMENT'S
DISCUSSION AND ANALYSIS FOR THE SIX MONTHS ENDED 31 JULY 2023
Vancouver, September 28, 2023
Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the "Company"), a
mineral exploration and development company focused on its projects in
Cornwall, United Kingdom, is pleased to announce that it has released its
unaudited financial statements and management, discussion and analysis
("MD&A") for the six months ended July 31, 2023. The reports are available
under the Company's profile on SEDAR (www.sedar.com (http://www.sedar.com) )
and on the Company's website (www.cornishmetals.com
(http://www.cornishmetals.com/) ).
Highlights for the six months ended July 31, 2023 and for the period ending
September 28, 2023
(All figures expressed in Canadian dollars unless otherwise stated)
· Updated JORC (2012) compliant Mineral Resource Estimate for South
Crofty mine released showing a 31.6% increase to contained tin in the
Indicated Mineral Resource category for the Lower Mine (news release dated
September 13, 2023
(https://cornishmetals.com/site/assets/files/5612/2023-09-13_mre_final.pdf) );
· Drill program to collect samples for metallurgical testwork as part
of the South Crofty Feasibility Study completed in June 2023 with assay
results received to date reported (news release dated July 3, 2023
(https://cornishmetals.com/site/assets/files/5597/2023-07-03_drill_results_final.pdf)
)
· Construction of the water treatment plant ("WTP") completed at a
construction cost in the region of £7.0 million ($11.9 million at quarter end
exchange rate);
· Wet commissioning of the WTP commenced with mine dewatering expected
to commence in October 2023 once the WTP is treating water to the required
standards (news release dated September 27, 2023
(https://cornishmetals.com/site/assets/files/5623/2023-09-27_mwtp_wet_commissioning.pdf)
);
· Two submersible pumps installed in New Cook's Kitchen ("NCK") shaft
with the pumps and variable speed drives successfully commissioned in July
2023 (news releases dated June 26, 2023
(https://cornishmetals.com/site/assets/files/5594/2023-06-26_pump_1_installation.pdf)
and July 18, 2023
(https://cornishmetals.com/site/assets/files/5601/2023-07-18_2nd_pump_and_power.pdf)
);
· Fifteen-month power supply contract agreed for the provision of 100%
renewably generated power thereby providing certainty over power costs during
the mine dewatering phase (news release dated July 18, 2023
(https://cornishmetals.com/site/assets/files/5601/2023-07-18_2nd_pump_and_power.pdf)
);
· Two single drum winders ordered for the shaft re-access work, with
both winders expected on site in October 2023 with installation planned
shortly thereafter;
· Remedial work underway on the south headframe above NCK shaft and the
winder building in readiness for the installation of the main winder;
· Commencement of follow-up exploration drill program at the Wide
Formation target in the Carn Brea exploration area (news release dated
September 19, 2023
(https://cornishmetals.com/site/assets/files/5613/2023-09-19_wf_drilling_final.pdf)
); and
· Work on the Feasibility Study continues with completion planned by
the end of 2024.
Richard Williams, CEO of Cornish Metals, stated, "The Cornish Metals team has
made great progress continuing to advance the South Crofty project over the
last quarter with the construction of the water treatment plant and updated
Mineral Resource at South Crofty.
"The recently announced 39% increase in tonnes and the 32% increase in
contained tin confirms management's belief in the potential to continue to
grow the Mineral Resource base at South Crofty.
"Much has been achieved since the beginning of the year and, with
commissioning of the water treatment plant underway, it is pleasing to see
that commencement of dewatering the mine is just round the corner.
Furthermore, there has been a lot of progress made in planning and preparing
for the re-accessing of the mine which will take place in parallel with mine
dewatering.
"Additionally, a successful drill program at the Wide Formation will allow us
to assess the potential to extend both the mine life and increase production
throughput at South Crofty.
"Overall, the last few months have been very busy but also exceptionally
rewarding as we move towards a construction decision for South Crofty. The
Feasibility Study remains on track for completion in 2024. The financial
position of the Company is healthy and we remain focussed on our objective to
complete the dewatering of South Crofty within the next 18 months."
Review of activities
Updated Mineral Resource Estimate released for South Crofty mine
An updated Mineral Resource Estimate for South Crofty mine, prepared in
accordance with the requirements of the JORC Code (2012 Edition), was released
on September 13, 2023 ("Updated MRE"). This updates and supersedes the MRE
published on June 9, 2021 ("2021 MRE").
Since the preceding 2021 MRE, the Company's geological team has continued to
digitize and incorporate historic assay data into the Mineral Resource model
for the Lower Mine. Furthermore, confirmation of existing structures at
depth through the recent metallurgical drilling program (as described below)
has been incorporated into the Updated MRE.
The Updated MRE for the Lower Mine area of South Crofty mine reports a:
· 39.0% increase in tonnes and a 31.6% increase in contained tin in the
Indicated Mineral Resource category from the 2021 MRE; and
· 35.6% increase in tonnes and 15.5% increase in contained tin in the
Inferred Mineral Resource category from the 2021 MRE.
The Updated MRE for the tin-only Lower Mine is summarized below:
Summary of South Crofty Lower Mine Area Mineral Resource Estimate at 0.6% Sn
Cut-Off Grade (September 6, 2023)
Classification Mass Grade Contained Tin (t) Increase to Contained Tin from 2021 MRE
(kt) (% Sn) (t / %)
Indicated 2,896 1.50 43,573 10,475 / 31.6%
Inferred 2,626 1.42 37,422 5,026 / 15.5%
The majority of new Mineral Resources are contained within the central part of
the mine in No. 1, No. 2, No. 3, Main, Intermediate, North and Great Lodes
following digitization and modelling of historic data.
The Updated MRE for the Lower Mine area is reported using a 0.6% tin cut-off
grade, the same cut-off grade applied in the MREs prepared in 2016 and 2021.
The Updated MRE was prepared by the Company's geological team and
independently reviewed and verified by AMC Consultants (UK) Ltd.
The Lower Mine area contains tin mineralization within quartz-tourmaline vein
or "lode" structures, which are hosted entirely within granitic rocks. The
major lode structures that comprise the Updated MRE remain open along strike
and to depth.
Mineral Resources for the Upper Mine area of the South Crofty Updated MRE were
reported accounting for a recalculation of tin equivalent grades due to
changes in metal prices since the 2021 MRE was published (refer press release
dated September 13 2023).
Mineral Resources which are not Mineral Reserves do not have demonstrated
economic viability. The estimate of Mineral Resources may be materially
affected by environmental, permitting, legal, title, taxation,
socio-political, marketing or other relevant issues.
The Updated MRE will be incorporated into the mine plan to be included in the
Feasibility Study as described below.
Construction progress of water treatment plant at South Crofty
Construction progress of the WTP at South Crofty involves various enabling
works, including completion of the treated water discharge duct from the WTP,
various roadways and the concrete foundation pad for the WTP itself.
Pipelines carrying water from the submersible pumps in NCK shaft to the WTP
were also laid along with electrical and communication systems.
The WTP comprises nine reaction tanks for altering the chemical properties to
precipitate the various metals out of solution, and six inclined plate
settling tanks (lamella clarifiers) to remove the precipitated solids. All
the tanks and clarifiers were installed by the end of June 2023, as were the
structural steel supports and walkways which provide access to the WTP. At
the back end of the WTP, a sludge storage and thickening system has been
installed, consisting of storage tanks for unthickened and thickened sludge
and a deep cone thickener to thicken the sludge.
Reagent storage, make-up and dosing equipment have been supplied as complete
packages from specialist manufacturers who also assisted with their
installation.
At the mine end, a building housing the high voltage power supply/sub-station
and the variable speed drives required to operate the pumps was completed in
August 2023. The 11kV power supply was also energized in August 2023 with
the new power supply contract (refer below). At the WTP end, a large motor
control center and automation system has been installed in a new building,
which National Grid have connected to their network with another new
substation.
A hydro-turbine has been added ahead of the discharge point that will generate
up to 15% of the electricity required to operate the WTP.
Wet commissioning of the WTP commenced mid-September 2023 with final balancing
of the discharge chemistry to be completed. Dewatering of the mine is
anticipated to commence in October 2023. Only once the plant is fully
operational and performing to the required standards will any treated water be
discharged to the Red River.
Overall, the cost of construction for the WTP is expected to be in the region
of £7.0 million ($11.9 million at quarter end exchange rate) subject to the
length of the commissioning period.
Installation of submersible pumps and commissioning of variable speed drives
Two submersible pumps manufactured by KSB in Germany have been installed in
NCK shaft for the first stage of the two-stage mine dewatering program. The
pumps are specialist high head, vertical pumps that are controlled by variable
speed drives ("VSDs") to enable the 25,000m3/day pumping rate to the WTP to be
maintained as the water level drops and the pumping head increases. The VSDs
were manufactured by Schneider Electric and supplied by Siemag Tecberg UK.
The first pump was installed in NCK shaft at the end of June 2023 and the
second pump was installed mid-July 2023. Commissioning teams from Siemag
Tecberg UK and Schneider Electric were on-site for the last two weeks of July
2023 testing the pumps and VSDs. The pumps and VSDs were successfully
commissioned and ran through a series of performance tests to demonstrate
their ability to meet the target flow rate to the WTP.
The pumps have been initially lowered to immediately below the 195 fathom
level (360 meters below surface) and suspended from 120 three meter long pipes
that form the temporary rising main. When the water level reaches the 195
fathom level, a permanent set of pumps will be installed at that level. The
submersible pumps will then be lowered to the 400 fathom level (approximately
700 meters below surface) for the second stage of dewatering.
For the purposes of commissioning, the pumps have been pumping mine water from
below the 195 fathom level to the WTP where it has been diverted around the
plant and returned back underground via a specially installed commissioning
loop. Once the WTP is commissioned, the fully treated mine water will be
diverted to the Red River and dewatering of the mine will commence.
Execution of power supply contract for South Crofty
In July 2023, South Crofty entered into a 15-month supply contract with NPower
for the provision of 100% renewably generated power. The supply contract
allows South Crofty to advance through the mine dewatering phase with
certainty over the power costs for the next 15 months. This added certainty
is an important financial consideration given the power price volatility seen
over the last 18 months.
Preparation for re-accessing the New Cook's Kitchen shaft
Two single drum winders have been ordered for the shaft re-access work, with
the main winder being supplied by Siemag Tecberg UK and an emergency egress
winder being provided by Zitrón S.A.. The winders are due on site in October
2023. These winders will enable the NCK shaft to be re-accessed once
dewatering activities are underway. Conveyances and rope attachment packages
for both winders have been ordered.
The south headframe sitting above NCK shaft is being remediated and
strengthened as required. New sheave wheels and associated apparatus have been
ordered to replace the originals which were beyond economic repair. The
building housing the main winder is being remediated with the installation of
new exterior cladding. The secondary egress winder is being housed in a new
temporary winding house to the west of the shaft, which is being erected in
October 2023. The concrete foundations for both winders have been poured in
readiness for their installation in October 2023.
Pump and pipe handling infrastructure has also been installed around the
headframe to facilitate the lowering of the pumps and pipes and subsequent
dewatering activities. The above water timber sets in the shaft have been
inspected down to the water level, with most found to be in good condition.
Where required, timber sets in the shaft are being replaced and any debris
removed.
Metallurgical study drill program at South Crofty
A metallurgical drill program as part of the Feasibility Study was completed
between July 2022 and June 2023. The program was designed to collect samples
for various metallurgical studies, including XRT ore sorting, flowsheet
optimisation and paste backfill studies. This testwork should allow
acceleration of the Feasibility Study in advance of dewatering the mine and
will provide key information for the mineral processing flowsheet.
The program comprised 10,312 meters of diamond drilling with three drill rigs
being contracted from Priority Drilling Limited, under the supervision of the
Company's geological team.
Samples were collected from the North Pool Zone (eastern section of Mineral
Resource), the No. 4 and No. 8 Lodes (central part of the Mineral Resource),
Roskear and Dolcoath South (western part of the Mineral Resource). These
five main lodes / mineralized zones contain the majority of the mineralized
material anticipated to be processed during the first six years of the mine
life.
The metallurgical drill program comprised 14 parent and daughter drill holes
targeting No. 4 and No. 8 Lodes, and 14 parent and daughter holes targeting
the Roskear Lode. Visible tin mineralization was observed in all 28 drill
holes. Three holes from each Lode were assayed for base metals and associated
elements and the rest of the drill intercepts were used for metallurgical
studies. The assay results were reported in the press release dated July 3,
2023.
Four parent and 29 daughter holes targeting the North Pool Zone and the
Dolcoath South Lode, respectively, were also completed. Assay results from
these holes will be released when received.
Initial metallurgical studies have commenced and are expected to be
substantially completed by the end of 2023 for inclusion in the Feasibility
Study with completion planned by the end of 2024 as described below.
Preparation of Feasibility Study
Work on the South Crofty Feasibility Study has been underway since June
2022. In addition to the metallurgical testwork program and Updated MRE
noted above, the Feasibility Study continues to advance with the following
activities:
· Wardell Armstrong has completed Phase 1 of the metallurgical testwork
program, including ore sorting testwork, and is now progressing through
flowsheet verification;
· Fairport Engineering has completed concept and optimization design
studies and is underway with the feasibility level engineering of the mineral
processing plant;
· A site investigation for the mineral processing plant has been
completed by AGS Ground Solutions;
· Concept numerical modelling of the proposed underground mining methods
and stope designs, including back analysis, has been completed by MiningOne;
· Geotechnical televiewing has been completed on the five primary mining
areas by Robertson Geo, validating previously known structural data;
· The program for geotechnical rock testing has been completed with the
results confirming known historic testwork;
· Paterson & Cooke (UK) has completed concept engineering and
sighter testwork on paste backfill options;
· Life of Mine underground ventilation design options have been
completed and are being reviewed;
· Entech Mining and RSV Group have completed the refurbishment and
recommissioning study of NCK and Roskear shafts, and preliminary designs for
the material handling infrastructure in the Upper Mine have been completed;
· Underground stope optimization is underway, which will include the
new central mining areas from the Updated MRE noted above;
· AMC Consultants (UK) has been commissioned to review and provide
overall Feasibility Study sign-off;
· CRU Group has been engaged for the market study section of the
Feasibility Study;
· Piteau Associates has completed the mine hydrogeological studies; and
· SLR Consulting is underway with the environmental and social sections
of the Feasibility Study.
It is planned that the Feasibility Study will be completed by the end of 2024.
Commencement of exploration drill program at Carn Brea South
A 9,000 meter exploration drill program commenced at the Wide Formation target
in the Carn Brea South exploration area (refer news release dated September
19, 2023). The drill program is designed to test the geometry and the
continuity of tin mineralization within the recently discovered Wide Formation
target (refer news release dated January 10, 2023).
The alteration style in the Wide Formation, comprising pervasive tourmaline
and quartz (termed 'blue peach'), is similar in character to that associated
with No. 8 Lode, one of the most prolific tin producing lodes in the latter
years of operation of the South Crofty mine. The drill programme will test
an area measuring 2,500 meters along strike (northeast to southwest) and 500
meters downdip (north to south).
Financial highlights for the six months ended July 31, 2023 and July 31, 2022
Six months ended (unaudited)
July 31, 2023 July 31, 2022
(Expressed in Canadian dollars)
Total operating expenses $2,041,551 $1,888,943
Loss for the period $887,399 $3,250,557
Net cash (used in) operating activities ($1,312,999) ($1,836,464)
Net cash (used in) investing activities ($15,622,535) ($2,552,626)
Net cash provided by (used in) financing activities ($723) $61,256,694
Cash at end of the period $39,897,599 $61,629,169
· Increase in operating costs impacted by higher insurance costs
attributable to more site-based activities primarily relating to the
construction of the WTP and related dewatering work;
· Expenditure of $8.8 million incurred during the period on the
construction of the WTP and related dewatering equipment, as well as new or
replacement equipment for the mine;
· Other project related costs of $6.1 million incurred during the
period relating to the advancement of South Crofty to a potential construction
decision, primarily for the metallurgical drill program and planning
activities for dewatering and shaft re-access;
· Interest income of $807,294 arising from increased interest rates
being received on higher cash balance following the Offering; and
· Recognition of foreign currency translation gain of $2.6 million for
those assets located in the UK when translated into Canadian dollars for
presentational purposes.
Outlook
As described above, the proceeds raised from the Offering completed in May
2022 are being used to advance the South Crofty tin project to a potential
construction decision within 30 months from closing of the Offering (December
2024).
Within 30 months from the closing of the Offering, the Company's plans are as
follows:
· Commence dewatering and thereafter complete the dewatering of the
mine within 18 months;
· Complete a Feasibility Study using all reasonable commercial efforts
by the end of 2024; and
· Commence basic and detailed engineering studies, construction of the
processing plant, refurbishment of underground facilities and other on-site
early works.
The follow up exploration drill program at the Wide Formation target at Carn
Brea South will also continue subject to the receipt of satisfactory drill
results.
Subject to the availability of financing, consideration will also be given to
continuing with the Company's exploration program at United Downs and
evaluating other high potential, exploration targets within transport distance
of the planned processing plant site at South Crofty.
ABOUT CORNISH METALS
Cornish Metals is a dual-listed company (AIM and TSX-V: CUSN) focused on
advancing the South Crofty high-grade, underground tin Project through to
delivery of a Feasibility Study, as well as exploring its additional mineral
rights, all located in Cornwall, United Kingdom. The former producing South
Crofty tin mine is located beneath the towns of Pool and Camborne, and closed
in 1998 following over 400 years of continuous production.
TECHNICAL INFORMATION
The technical information in this news release has been compiled by Mr. Owen
Mihalop. Mr. Mihalop has reviewed and takes responsibility for the data and
geological interpretation. Mr. Owen Mihalop (MCSM, BSc (Hons), MSc, FGS,
MIMMM, CEng) is Chief Operating Officer for Cornish Metals Inc. and has
sufficient experience relevant to the style of mineralization and type of
deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined under the JORC Code (2012) and as a
Qualified Person under NI 43-101. Mr. Mihalop consents to the inclusion in
this announcement of the matters based on his information in the form and
context in which it appears.
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams, P.Geo
For additional information please contact:
In North America: Irene Dorsman at (604) 200 6664 or by e-mail at
irene@cornishmetals.com (mailto:irene@cornishmetals.com)
SP Angel Corporate Finance LLP Richard Morrison Tel: +44 203 470 0470
(Nominated Adviser & Joint Broker) Charlie Bouverat
Grant Barker
Hannam & Partners Matthew Hasson Tel: +44 207 907 8500
(Joint Broker) Andrew Chubb email: cornish@hannam.partners (mailto:cornish@hannam.partners)
Jay Ashfield
BlytheRay Tim Blythe Tel: +44 207 138 3204
(Financial PR/IR-London) Megan Ray email: tim.blythe@blytheray.com (mailto:tim.blythe@blytheray.com)
megan.ray@blytheray.com
(mailto:megan.ray@blytheray.com)
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Caution regarding forward looking statements
This news release contains "forward-looking statements" including, but not
limited to, statements in connection with the expected use of proceeds of the
Offering, including in respect of certain work programs, expected
construction, including in respect of the WTP, and the potential completion of
a Feasibility Study on the South Crofty mine and the timing thereof, the
exploration program at United Downs and other exploration opportunities
surrounding the South Crofty tin project, expected recruitment of various
personnel, and expectations respecting tin pricing and other economic
factors. Forward-looking statements, while based on management's best
estimates and assumptions at the time such statements are made, are subject to
risks and uncertainties that may cause actual results to be materially
different from those expressed or implied by such forward-looking statements,
including but not limited to: risks related to receipt of regulatory
approvals, risks related to general economic and market conditions; risks
related to the COVID-19 global pandemic and any variants of COVID-19 which may
arise; risks related to the availability of financing when required and on
terms acceptable to the Company and the potential consequences if the Company
fails to obtain any such financing, such as a potential disruption of the
Company's exploration program(s); the timing and content of upcoming work
programs; actual results of proposed exploration activities; possible
variations in Mineral Resources or grade; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes, title
disputes, claims and limitations on insurance coverage and other risks of the
mining industry; changes in national and local government regulation of mining
operations, tax rules and regulations.
Although Cornish Metals has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Cornish Metals undertakes no obligation or responsibility to
update forward-looking statements, except as required by law.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Expressed in Canadian dollars)
July 31, 2023 January 31, 2023
ASSETS
Current
Cash $ 39,897,599 $ 55,495,232
Marketable securities 2,764,572 2,718,936
Receivables 955,271 656,407
Prepaid expenses 286,601 371,977
43,904,043 59,242,552
Deposits 85,047 54,165
Property, plant and equipment 18,805,363 9,721,352
Exploration and evaluation assets 41,514,247 33,088,129
$ 104,308,700 $ 102,106,198
LIABILITIES
Current
Accounts payable and accrued liabilities $ 3,048,640 $ 2,494,642
Lease liability - 642
3,048,640 2,495,284
NSR liability 9,031,233 9,149,804
12,079,873 11,645,088
SHAREHOLDERS' EQUITY
Capital stock 128,394,652 128,377,152
Share subscriptions received in advance - 17,500
Capital contribution 2,007,665 2,007,665
Share-based payment reserve 410,307 384,758
Foreign currency translation reserve 1,980,605 (648,962)
Deficit (40,564,402) (39,677,003)
92,228,827 90,461,110
$ 104,308,700 $ 102,106,198
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(Unaudited)
(Expressed in Canadian dollars)
Six months ended
July 31, 2023 July 31, 2022
EXPENSES
Travel and marketing $ 246,060 $ 269,075
Depreciation - 443
Insurance 347,056 66,716
Office, miscellaneous and rent 108,040 55,516
Professional fees 536,314 359,845
Generative exploration costs 5,233 56,081
Regulatory and filing fees 55,422 98,718
Share-based compensation 25,549 -
Salaries, directors' fees and benefits 717,877 982,549
Total operating expenses (2,041,551) (1,888,943)
Interest income 807,294 15,223
Foreign exchange gain (loss) 381,878 (2,237,188)
Gain on the disposal of royalty - 318,147
Unrealized gain on marketable securities (35,020) 542,204
Loss for the period (887,399) (3,250,557)
Foreign currency translation 2,629,567 (2,098,402)
Total comprehensive income (loss) for the period $ 1,742,168 $ (5,348,959)
Basic and diluted income (loss) per share $ 0.00 $ (0.01)
Weighted average number of common shares outstanding: 535,267,950 378,614,227
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
(Expressed in Canadian dollars)
For the six months ended
July 31, 2023 July 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period $ (887,399) $ (3,250,557)
Items not involving cash:
Depreciation - 443
Share-based compensation 25,549 -
Gain on the disposal of royalty - (318,147)
Unrealized loss (gain) on marketable securities 35,020 (542,204)
Foreign exchange loss (gain) (381,878) 2,237,188
Changes in non-cash working capital items:
Increase in receivables (298,864) (35,101)
Decrease (increase) in prepaid expenses 66,214 (2,185)
Increase in accounts payable and accrued liabilities 128,359 74,099
Net cash used in operating activities (1,312,999) (1,836,464)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment (8,032,282) (388,283)
Acquisition of exploration and evaluation assets (7,561,503) (2,155,493)
Increase in deposits (28,750) (8,850)
Net cash used in investing activities (15,622,535) (2,552,626)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the Offering - 65,135,746
Proceeds from option and warrant exercises - 7,000
Share issue costs - (3,947,087)
Proceeds from the disposal of royalty - 63,147
Lease payments (723) (2,112)
Net cash provided by (used in) financing activities (723) 61,256,694
Impact of foreign exchange on cash 1,338,624 (2,161,139)
Change in cash during the period (15,597,633) 54,706,465
Cash, beginning of the period 55,495,232 6,922,704
Cash, end of the period $ 39,897,599 $ 61,629,169
Cash paid during the period for interest $ - $ -
Cash paid during the period for income taxes $ - $ -
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS'
EQUITY
(Unaudited)
(Expressed in Canadian dollars)
Share Foreign
Capital stock subscriptions Share-based currency
Number of received in Capital payment translation Shareholders'
shares Amount advance contribution reserve reserve Deficit equity - total
Balance at January 31, 2022 285,850,157 $ 56,846,350 $ - $ 2,007,665 $ 630,265 $ (174,123) $ (38,599,036) $ 20,711,121
Share issuance pursuant to the Offering 225,000,000 65,135,746 - - - - - 65,135,746
Share issue costs - (3,964,332) - - - - - (3,964,332)
Warrant exercises 100,000 7,000 - - - - - 7,000
Shares issued pursuant to property option agreement 20,298,333 9,844,692 - - - - - 9,844,692
Foreign currency translation - - - - - (2,098,402) - (2,098,402)
Loss for the period - - - - - - (3,250,557) (3,250,557)
Balance at July 31, 2022 531,248,490 $ 127,869,456 $ - $ 2,007,665 $ 630,265 $(2,272,525) $ (41,849,593) $ 86,385,268
Balance at January 31, 2023 535,020,712 $128,377,152 $ 17,500 $ 2,007,665 $ 384,758 $ (648,962) $ (39,677,003) $ 90,461,110
Warrant exercises 250,000 17,500 (17,500) - - - - -
Foreign currency translation - - - - - 2,629,567 - 2,629,567
Share-based compensation - - - - 25,549 - - 25,549
Loss for the period - - - - - - (887,399) (887,399)
Balance at July 31, 2023 535,270,712 $128,394,652 $ - $ 2,007,665 $ 410,307 $1,980,605 $ (40,564,402) $ 92,228,827
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