TIDMAEXG
RNS Number : 7982F
AEX Gold Inc
19 November 2020
("AEX" or the "Corporation")
AEX Gold Inc. Reports Third Quarter Financial Results
TORONTO, ONTARIO - NOVEMBER 19, 2020 - AEX Gold Inc. (AIM: AEXG;
TSXV: AEX), an independent gold company with a portfolio of gold
licences in Greenland, announces its unaudited condensed interim
consolidated financial statements ("Financial Statements") for the
quarter ended September 30, 2020. All figures are in Canadian
dollars unless otherwise noted.
The Financial Statements and the accompanying Management
Discussion and Analysis are available on the Corporation's website
at www.aexgold.com and will be filed under the Corporation's SEDAR
profile at
www.sedar.com later today .
Financial Highlights
-- The Corporation reported a net loss of $4.6 million in Q3
2020 (Q3 2019: $2.6 million), driven by increased exploration and
evaluation activities and corporate activity during the period, as
well as non-cash foreign exchange loss.
-- Exploration and evaluation expenses during the quarter were
$2.9 million (Q3 2019: $1.8 million), driven by increased activity
on the Nalunaq Property and its regional exploration portfolio.
-- General and administrative expenses during the quarter were
$1.1 million (Q3 2019: $0.2 million), with the increase a result of
higher management, consulting and professional fees associated with
its AIM listing and as the Corporation moves towards development at
Nalunaq.
-- On July 31, 2020, the Corporation completed its AIM Admission
in addition to its existing TSX-V listing, with the issue of
94,444,445 common shares at a price of GBP 0.45 ($0.77) per share
for an equity placing raising gross proceeds of $74.6 million.
-- The Corporation had a cash balance of $68.7 million at
September 30, 2020 ($1.5 million at December 31, 2019), with no
debt, and total working capital of $67.5 million ($1.2 million at
December 31, 2019).
Selected Financial Information
The following selected financial data is extracted from the
Financial Statements for the three and nine months ended September
30, 2020.
Financial Results
Three months Nine months
ended September 30, ended September 30,
2020 2019 2020 2019
$ $ $ $
----------- ----------- ----------- -----------
Exploration and evaluation
expenses 2,908,340 1,754,353 4,432,791 2,320,175
General and administrative 1,104,822 227,751 1,986,372 721,547
Net loss and comprehensive
loss (4,609,492) (2,561,629) (8,018,061) (3,636,759)
Basic and diluted loss per
common share (0.03) (0.04) (0.08) (0.06)
----------- ----------- ----------- -----------
Financial Position
As at September 30, As at December 31,
2020 2019
$ $
------------------- ------------------
Cash on hand 68,742,384 1,515,406
Total assets 70,444,243 2,720,473
Total current liabilities 1,840,222 645,933
Shareholders' equity 68,604,021 2,074,540
Working capital 67,475,882 1,157,012
------------------- ------------------
Operational and Corporate Highlights
-- The Corporation successfully managed the mobilization and
demobilization of a small crew based at Nalunaq from August to the
end of October to accomplish key activities at Nalunaq and the
other exploration licenses. The procedure for mitigating the risks
related to COVID-19 proved to be effective, and the local
authorities were very supportive.
-- The 2020 surface drilling program at Nalunaq commenced during
the period in August and was finalized following the end of the
period, in the second half of October, with eleven drill holes for
a total of 2,191 metres drilled. The Main Vein was identified in
six of the eleven holes drilled, with some of the intersects
yielding the thickest interceptions (1.50 meters) ever recorded at
Nalunaq. Initial results from the drilling were announced on
October 21, 2020, and the remaining results will be reported when
received during Q4 2020.
-- Terms of Reference of the environmental impact assessment
("EIA") and social impact assessment ("SIA") have been accepted by
the authorities in October 2020 and will now progress to public
consultation.
-- A business readiness program was continued internally during
the period as the Corporation increases its overall readiness for
transitioning towards project execution, including human resources,
recruiting, environmental and social impact assessment scoping,
organizational structuring, project and cost control, and
accounting.
-- During the period, the Corporation conducted exploration
activities over the exploration licence areas, as well as its wider
regional portfolio, as part of the 2020 summer work program
announced on August 24, 2020 and the results of these exploration
activities will be announced as soon as received in Q4 2020.
-- On July 27, 2020, the Corporation appointed Sigurbjorn
("Siggi") Thorkelsson as an independent non-executive director of
the Corporation and Chair of the Audit and Risk Committee. Mr.
Thorkelsson brings a wealth of experience in the financial markets,
having worked at major financial institutions throughout his
career.
Post Period-End
-- Early in November 2020, the Corporation was granted an
addendum to the Anoritooq Licence, increasing the size of the
licence to 1,889km(2) .
-- Following the period end, the Corporation was granted one new
Mineral Exploration Licence in South Greenland, namely
Kangerluarsuk, covering an area totalling 335km(2) , taking the
Corporations full license area to 3,870km(2) .
Eldur Olafsson, CEO of AEX, commented:
"I'm pleased to announce our third quarter 2020 financial
results, which demonstrate the significant increase in activity
across our portfolio as our business transitions towards
development.
"Following the successful $72.7 million fundraise and AIM
listing in July 2020, the Company was able to leverage its strong
cash balance and the remaining months of Greenlandic autumn to
front-end surface drilling initially planned for 2021.
"Furthermore, the launch of the request for proposal process for
underground development contractors, and front-end engineering and
surface drilling all provided significant advancement to the
project during Q3 and puts us in an excellent position ahead of our
onsite development activities in 2021.
"We look forward to providing updates to the market on our many
exciting workstreams in due course."
Enquiries:
AEX Gold Inc.
George Fowlie, Director and CFO
1-416-587-9801
gf@aexgold.com
Eldur Olafsson, Director and CEO
+354 665 2003
eo@aexgold.com
Stifel Nicolaus Europe Limited (Nominated Adviser and
Broker)
Callum Stewart
Simon Mensley
Ashton Clanfield
+44 (0) 20 7710 7600
Camarco (Financial PR)
Gordon Poole
Nick Hennis
+44 (0) 20 3757 4980
AEX Gold Inc: Unaudited Condensed Interim Consolidated Financial
Statements for the three and nine Months Ended September 30,
2020
AEX Gold Inc.
Consolidated Statements of Financial Position
( Unaudited, i n Canadian Dollars)
As at As at December
September 30, 31,
Notes 2020 2019
-------------------------------------------- ----- --------------- ---------------
$ $
ASSETS
Current assets
Cash 68,742,384 1,515,406
Escrow account for environmental monitoring - 174,864
Sales tax receivable 98,349 17,792
Prepaid expenses and others 475,371 94,883
Total current assets 69,316,104 1,802,945
Non-current assets
Deferred share issuance costs - 166,348
Deposit 27,944 -
Escrow account for environmental monitoring 461,383 342,132
Mineral properties 3 55,682 41,945
Property and equipment 4 583,130 367,103
Total non-current assets 1,128,139 917,528
-------------------------------------------- ----- --------------- ---------------
TOTAL ASSETS 70,444,243 2,720,473
-------------------------------------------- ----- --------------- ---------------
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 1,840,222 471,069
Environmental monitoring provision - 174,864
-------------------------------------------- ----- --------------- ---------------
Total liabilities 1,840,222 645,933
-------------------------------------------- ----- --------------- ---------------
Equity
Capital stock 5 88,500,205 13,883,611
Warrants 6 - 1,459,604
Contributed surplus 2,925,952 1,535,400
Accumulated other comprehensive loss (36,772) (36,772)
Deficit (22,785,364) (14,767,303)
-------------------------------------------- ----- --------------- ---------------
Total equity 68,604,021 2,074,540
-------------------------------------------- ----- --------------- ---------------
TOTAL LIABILITIES AND EQUITY 70,444,243 2,720,473
-------------------------------------------- ----- --------------- ---------------
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
AEX Gold Inc.
Consolidated Statements of Comprehensive Loss
( Unaudited, i n Canadian Dollars)
Three months Nine months
ended September 30, ended September 30,
------------------------------------ ----- ----------------------------- -------------------------
Notes 2020 2019 2020 2019
------------------------------------ ----- -------------- ------------- ------------ -----------
$ $ $ $
Expenses
Exploration and evaluation expenses 8 2,908,340 1,754,353 4,432,791 2,320,175
General and administrative 9 1,104,822 227,751 1,986,372 721,547
Stock-based compensation 7 - 578,600 1,031,650 578,600
Foreign exchange loss 717,577 14,696 696,010 32,631
Operating loss 4,730,739 2,575,400 8,146,823 3,652,953
Other expenses (income)
Interest income (25,960) (15,939) (35,875) (23,004)
Finance costs (income) (95,287) 2,168 (92,887) 6,810
------------------------------------ ----- -------------- ------------- ------------ -----------
Net loss and comprehensive loss (4,609,492) (2,561,629) (8,018,061) (3,636,759)
------------------------------------ ----- -------------- ------------- ------------ -----------
Weighted average number of common
shares outstanding - basic and
diluted 146,280,087 70,946,394 100,466,279 62,367,254
Basic and diluted loss per common
share (0.03) (0.04) (0.08) (0.06)
------------------------------------ ----- -------------- ------------- ------------ -----------
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
AEX Gold Inc.
Consolidated Statements of Changes in Equity
( Unaudited, i n Canadian Dollars)
Accumulated
Number of other
common shares Capital Contributed comprehensive
Notes outstanding Stock Warrants surplus loss Deficit Total Equity
-------------- -------- ------------- ---------- --------- ----------- ------------- ------------ ------------
$ $ $ $ $ $
Balance at January 1,
2019 57,788,499 10,058,355 321,788 956,800 (36,772) (9,665,197) 1,634,974
Net loss and
comprehensive
loss - - - - - (3,636,759) (3,636,759)
Share and warrants
issuance
under a private
placement 13,157,895 3,853,718 1,146,282 - - - 5,000,000
Share issuance costs - (28,462) (8,466) - - - (36,928)
Stock-based compensation - - - 578,600 - - 578,600
Balance at September 30,
2019 70,946,394 13,883,611 1,459,604 1,535,400 (36,772) (13,301,956) 3,539,887
------------------------ ------------- ---------- --------- ----------- ------------- ------------ ------------
Balance at January 1, 2020 70,946,394 13,883,611 1,459,604 1,535,400 (36,772) (14,767,303) 2,074,540
Net loss and comprehensive
loss - - - - - (8,018,061) (8,018,061)
Share issuance under a
fundraising 5 94,444,445 74,550,202 - - - - 74,550,202
Share issuance costs 5 (6,312,546) - - - - (6,312,546)
Warrants exercised 6 11,607,898 6,318,938 (1,078,702) - - - 5,240,236
Warrants expired 6 - - (380,902) 380,902 - - -
Options exercised 7 100,000 60,000 - (22,000) - - 38,000
Stock-based compensation 7 - - - 1,031,650 - - 1,031,650
--------------------------- ----------- ----------- ----------- ---------- -------- ------------ -----------
Balance at September 30,
2020 177,098,737 88,500,205 - 2,925,952 (36,772) (22,785,364) 68,604,021
--------------------------- ----------- ----------- ----------- ---------- -------- ------------ -----------
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
AEX Gold Inc.
Consolidated Statements of Cash Flows
( Unaudited, i n Canadian Dollars)
Nine months
Notes ended September 30,
-------------------------------------------------- ----- -------------------------
2020 2019
-------------------------------------------------- ----- ------------ -----------
$ $
Operating activities
Net loss for the period (8,018,061) (3,636,759)
Adjustments for:
Depreciation 4 157,513 125,025
Stock-based compensation 7 1,031,650 578,600
Finance costs (income) (92,887) 6,810
Payment from cash held in escrow account for
environmental monitoring (95,102) (28,846)
Escrow account for environmental monitoring 95,102 28,846
Foreign exchange loss 685,401 34,926
-------------------------------------------------- ----- ------------ -----------
(6,236,384) (2,891,398)
Changes in non-cash working capital items:
Sales tax receivable (80,557) (7,287)
Prepaid expenses and others (380,430) (44,916)
Deposit (27,944) -
Trade and other payables 1,377,889 378,013
Payables to shareholders - (13,295)
-------------------------------------------------- ----- ------------ -----------
888,958 312,515
-------------------------------------------------- ----- ------------ -----------
Cash flow used in operating activities (5,347,426) (2,578,883)
-------------------------------------------------- ----- ------------ -----------
Investing activities
Acquisition of mineral properties 3 (13,737) (6,076)
Acquisition of property and equipment 4 (373,540) (133,036)
Cash flow used in investing activities (387,277) (139,112)
-------------------------------------------------- ----- ------------ -----------
Financing activities
Shares and warrants issuance 5 74,550,202 5,000,000
Share issuance costs 5 (6,140,329) (36,928)
Exercise of warrants 6 5,240,236 -
Exercise of stock options 7 38,000 -
Cash flow from financing activities 73,688,109 4,963,072
-------------------------------------------------- ----- ------------ -----------
Net change in cash before effects of exchange
rate changes on cash during the period 67,953,406 2,245,077
Effects of exchange rate changes on cash (726,428) (9,691)
-------------------------------------------------- ----- ------------ -----------
Net change in cash during the period 67,226,978 2,235,386
Cash, beginning of period 1,515,406 963,788
-------------------------------------------------- ----- ------------ -----------
Cash, end of period 68,742,384 3,199,174
-------------------------------------------------- ----- ------------ -----------
Supplemental cash flow information
Interest received 35,875 23,004
S hare issuance costs included in trade and other
payables 126,600 -
Exercise of warrants credited to capital stock 1,078,702 -
Exercise of stock options credited to capital
stock 22,000 -
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
AEX Gold Inc.
Condensed Notes to the interim Consolidated Financial
Statements
Three and nine months ended September 30, 2020 and 2019
( Unaudited, i n Canadian Dollars)
1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION
AEX Gold Inc. (the "Corporation") 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 AEX ticker and since July 2020, the
Corporation's shares are also listed on the AIM market of the
London Stock Exchange ("AIM") under the AEXG ticker (note 5).
These unaudited condensed interim consolidated financial
statements for the three and nine months ended September 30, 2020
("Financial Statements") were approved by the Board of Directors on
November 18, 2020.
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, 2019
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,
2019.
During the first three quarters of 2020, an outbreak of a new
strain of coronavirus (COVID-19) resulted in a major global health
crisis which continues to have impacts on the global economy and
the financial markets at the date of completion of the Financial
Statements. These events may cause significant changes on the
Corporation's ability to complete planned exploration and
evaluation activities in the future, meet its other obligations and
existing commitments for the exploration and evaluation programs or
our ability to obtain debt and equity financing. Following these
events, the Corporation has taken and will continue to take action
to minimize the impact of the COVID-19 pandemic. However, it is
impossible to ultimately determine the financial implications of
these events.
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
historical 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, 2019.
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, 2019 As at
September 30,
Additions 2020
------------------------- -------------- --------- --------------
$ $ $
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
Total mineral properties 41,945 13,737 55,682
------------------------- -------------- --------- --------------
As at December As at December
31, 2018 31,
Additions 2019
------------------------- -------------- --------- --------------
$ $ $
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
Total mineral properties 35,869 6,076 41,945
------------------------- -------------- --------- --------------
4. PROPERTY AND EQUIPMENT
Exploration and evaluation
Field equipment and Vehicles and rolling stock Equipment Total
infrastructure
$ $ $ $
------------------------------- ------------------------------ --------------------------- ---------- ----------
Nine months ended September
30, 2020
Opening net book value 271,977 86,656 8,470 367,103
Additions - 245,734 127,806 373,540
Depreciation (95,164) (59,720) (2,629) (157,513)
------------------------------- ------------------------------ --------------------------- ---------- ----------
Closing net book value 176,813 272,670 133,647 583,130
As at September 30, 2020
Cost 387,323 533,800 138,320 1,059,443
Accumulated depreciation (210,510) (261,130) (4,673) (476,313)
------------------------------- ------------------------------ --------------------------- ---------- ----------
Closing net book value 176,813 272,670 133,647 583,130
------------------------------- ------------------------------ --------------------------- ---------- ----------
Depreciation of property and equipment 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 $43,196 for the three
months ended September 30, 2020 ($157,513 for the nine months ended
September 30, 2020) was expensed as exploration and evaluation
expenses.
5. SHARE CAPITAL
AIM listing
During the quarter ended September 30, 2020, the Corporation
completed the admission of its entire issued share capital to
trading on the AIM market of the London Stock Exchange and trading
commenced on AIM on July 31, 2020 ("Admission") under the ticker
AEXG.
Completion of the fundraising
On July 31, 2020, the Corporation completed the fundraising by
issuing 94,444,445 common shares at a price of $0.77 per share for
subscription made in Canadian dollars and GBP 0.45 per share for
subscriptions made in British pounds sterling, for gross proceeds
to the Corporation of $74,550,202 (the "Fundraising").
The Corporation incurred total issuance costs of $6,312,546 in
relation to this process.
Certain officers and directors of the Corporation purchased an
aggregate of 1,177,581 common shares for $906,737. The officers and
directors of the Corporation subscribed to the Fundraising under
the same terms and conditions as set forth for all subscribers.
6. WARRANTS
6.1 Warrants
Changes in the Corporation's warrants are as follow:
Nine months ended September As at December 31, 2019
30, 2020
------------------- ---------------------------------- ----------------------------------------
Weighted
average Weighted
Number of Carrying exercise Number of Carrying average exercise
warrants Value price warrants Value price
------------------- ------------ --------- --------- ---------- --------- -----------------
$ $ $ $
Balance, beginning 13,157,895 1,137,816 0.45 - - -
Issued - - - 13,157,895 1,137,816 0.45
Exercised (11,272,271) (974,758) 0.45 - - -
Expired (1,885,624) (163,058) 0.45 - - -
---------- --------- -----------------
Balance, end - - - 13,157,895 1,137,816 0.45
------------------- ------------ --------- --------- ---------- --------- -----------------
The Corporation has accelerated the expiry of certain common
share purchase warrants ("Warrants"), bearing an expiration date of
June 28, 2022. The certificate evidencing the Warrants ("Warrant
Certificate") provided for acceleration in certain circumstances,
which were met during the period. From the period February 6, 2020
to March 5, 2020, the daily volume weighted average price of the
Corporation's common shares on the TSX-V was equal to or greater
than $0.50, thus satisfying the acceleration requirements under the
Warrants. Accordingly, Warrant holders were provided with
notification that any Warrants that were not exercised before April
20, 2020, being the 30(th) trading day following the occurrence of
the acceleration event, would expire and be cancelled. Certain
Warrant holders exercised 11,272,271 Warrants, each entitling the
holder to receive one common share of the Corporation, at an
exercise price per warrant of $0.45, representing gross proceeds of
$5,072,522.
6. WARRANTS (CONT'D)
6.2 Agent warrants
Changes in the Corporation's agent and finders warrants are as
follow:
Nine months ended September As at December 31, 2019
30, 2020
------------------- ------------------------------- --------------------------------------
Weighted
average Weighted
Number of Carrying exercise Number of Carrying average exercise
warrants Value price warrants Value price
------------------- --------- --------- --------- --------- -------- -----------------
$ $ $ $
Balance, beginning 1,067,739 321,788 0.49 1,067,739 321,788 0.49
Exercised (335,627) (103,944) 0.50 - - -
Expired (732,112) (217,844) 0.49 - - -
------------------- --------- --------- --------- --------- -------- -----------------
Balance, end - - - 1,067,739 321,788 0.49
------------------- --------- --------- --------- --------- -------- -----------------
7. STOCK OPTIONS
An incentive stock option plan (the "Plan") was approved
initially in 2017 and renewed by shareholders on June 17, 2020. 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 and directors, employees and
consultants. The Board of directors attributes 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 June 17, 2020, the Corporation granted to its directors,
officers and consultants 2,195,000 stock options exercisable at an
exercise price of $0.70, with an expiry date of December 31, 2026.
The stock options vested 100% at the grant date. Those options were
granted at an exercise price equal to the closing market value of
the shares the previous day of the grant. Total stock-based
compensation costs amount to $1,031,650 for an estimated fair value
of $0.47 per option. The fair value of the options granted was
estimated using the Black-Scholes model with no expected dividend
yield, 76.41% expected volatility, 0.41% risk-free interest rate
and 6.5 years options expected life. The expected life and expected
volatility were estimated by benchmarking comparable companies to
the Corporation.
Changes in stock options are as follow:
Nine months ended
September 30, 2020 As at December 31,2019
------------------- ---------------------------- ----------------------------
Weighted Weighted
Number of average exercise Number of average exercise
options price options price
------------------- --------- ----------------- --------- -----------------
$ $
Balance, beginning 5,650,000 0.43 3,020,000 0.47
Granted 2,195,000 0.70 2,630,000 0.38
Exercised (100,000) 0.38 - -
Balance, end 7,745,000 0.51 5,650,000 0.43
------------------- --------- ----------------- --------- -----------------
7. STOCK OPTIONS (CONT'D)
Stock options outstanding and exercisable as at September 30,
2020 are as follows:
Number of options
outstanding and Exercise
exercisable price Expiry date
----------------- -------- -----------------
$
1,360,000 0.50 July 13, 2022
1,660,000 0.45 August 22, 2023
2,530,000 0.38 December 31, 2025
2,195,000 0.70 December 31, 2026
----------------- -------- -----------------
7,745,000
----------------- -------- -----------------
8. EXPLORATION AND EVALUATION EXPENSES
Three months Nine months ended
ended September 30, September 30,
---------------------------- ------------------------- ----------------------
2020 2019 2020 2019
---------------------------- ------------ ----------- ---------- ----------
$ $ $ $
Geology 936,988 379,524 1,732,412 741,252
Lodging and on-site support 182,783 194,895 186,446 194,895
Underground works 19,440 - 65,287 -
Drilling 134,913 83,023 168,227 83,023
Safety and environment 14,045 27,787 20,613 27,787
Analysis 132,211 4,057 199,280 18,637
Transport 330,084 228,391 400,740 234,116
Helicopter Charter 70,167 27,898 70,167 27,898
Logistic support 215,281 108,418 377,991 188,307
Insurance 29,260 18,301 33,773 18,301
Maintenance infrastructure 790,631 630,877 977,928 630,877
Government fees 9,341 9,020 42,414 30,057
Depreciation 43,196 42,162 157,513 125,025
---------------------------- ------------ ----------- ---------- ----------
Exploration and evaluation
expenses 2,908,340 1,754,353 4,432,791 2,320,175
---------------------------- ------------ ----------- ---------- ----------
9. GENERAL AND ADMINISTRATION
Three months Nine months
ended September 30, ended September 30,
--------------------------- ----------------------- -----------------------
2020 2019 2020 2019
--------------------------- ------------ --------- ------------ ---------
$ $ $ $
Salaries and benefits 62,380 - 64,832 -
Management and consulting
fees 353,231 79,224 633,220 219,024
Director's fees 85,833 18,750 135,833 37,500
Professional fees 318,897 67,502 637,001 254,207
Marketing and industry
involvement 152,044 34,739 299,025 96,560
Insurance 51,402 10,561 72,524 30,741
Travel and other expenses 30,306 13,115 61,486 61,380
Regulatory fees 50,729 3,860 82,451 22,135
--------------------------- ------------ --------- ------------ ---------
General and administration 1,104,822 227,751 1,986,372 721,547
--------------------------- ------------ --------- ------------ ---------
Further Information:
About AEX
AEX's principal business objectives are the identification,
acquisition, exploration and development of gold properties in
Greenland. The Corporation'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 assets covering
3,870km(2) , the largest portfolio of gold assets in Southern
Greenland covering the two known gold belts in the region. AEX 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 Corporation's current expectations regarding future events and
the future growth of the Corporation'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 Corporation'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 Corporation'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 Corporation and speaks only as of the date on which it is made.
Except as required by applicable securities laws, the Corporation
assumes no obligation to update or revise any forward-looking
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(END) Dow Jones Newswires
November 19, 2020 02:00 ET (07:00 GMT)
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