TIDMAEXG
RNS Number : 1649N
AEX Gold Inc
30 May 2022
AEX Gold - 2022 Objectives and First Quarter Financial
Results
TORONTO, ONTARIO - May 30(th) - 2022 - AEX Gold Inc. ("AEX" or
the "Company" or the "Corporation") (AIM: AEXG; TSXV: AEX), the
independent mining company with an unrivalled land package of gold
and strategic mineral assets covering an area of 7,615.85 km(2) in
Southern Greenland, is pleased to outline its 2022 objectives and
Q1 Financial Results.
AEX Gold's strategy remains to bring the Nalunaq gold project
back into production and use that base as a platform to discover
and develop other world class gold and strategic mineral assets
both directly and through partnerships to be found in the under
explored OECD jurisdiction that is Greenland.
2022 activity highlights
-- Nalunaq: Core drilling from up to four rigs within and
extension to the Valley Block aimed at increasing resources and
confidence and to prepare the ground for potential new
infrastructure development and bulk sample.
-- Vagar Ridge: New core drilling programme using two rigs aimed
at quantifying the scale of the discovery as well as the depth
potential.
-- Vagar Licence: Further geological mapping and sampling across
five new targets identified by the 2021 exploration programme.
-- Nanoq: Subject to the 2021 exploration results, expected to
be released imminently, the Company's intent is to prepare for
airborne geophysical survey across the target and along a 20km long
structural corridor linking the discovery to the Jokum's Shear
gold/copper occurrence.
-- Sava and North Sava: Maiden scout core drilling programme to
test IOCG mineralisation style identified within three target areas
identified in 2021 as well as an extended airborne geophysical
survey and geochemical sampling programme across North Sava.
-- Stendalen: Airborne geophysical surveys and geological
reconnaissance on recorded Ni/Cu sulphide mineralisation to define
best drilling locations for a 2023 core drilling programme.
-- Regional: further geological reconnaissance and sampling
across Eagle's Nest gold target and Kobbermineburgt copper targets
as well as sampling across Paatusoq Rare Earth target in
preparation for more detailed exploration in 2023.
-- Operational readiness: One of AEX's key regional
differentiators, its all-weather exploration camp remains open with
Geological and drill personnel inbound to commence 2022 field
season; contracts being finalised with ALS Geochemistry for the
installation of an onsite sample preparation laboratory; and most
key contracts in place with service providers and equipment
including four drill rigs, helicopters and boat charters and
geological supplies.
-- Cash balance of $23.8M at March 31, 2022.
Eldur Olafsson, CEO of AEX Gold, commented:
"After a very positive year of drilling and exploration in 2021
where amongst other things we confirmed a new high grade resource
block at Nalunaq and a much larger scale to the Vagar Ridge
discovery than we had imagined, we plan to build on this success in
2022 with an active drilling and geological programme across our
ever-growing portfolio to test the size and prospectivity. We
expect this programme to evolve as the season goes forward as we
are still expecting results from our Nanoq Licence, which are due
imminently, from regional assets and results from our Nørrearm
Graphite samples, expected in H2.
"We have also made great strides within our strategic mineral
and rare earths business, where Greenland is fast becoming the last
frontier for Western developed nations to secure these valuable
minerals which will play such an important role in the energy
transition. In recognition of this potential, the Company has
announced its intention to change its name from AEX Gold to Amaroq
Minerals post the AGM on 16(th) June 2022."
Precious Metals 2022 Exploration Work Programme:
Nalunaq
-- The 2022 exploration programme intends to provide further
resource development through both infill and strike extension
drilling across the Valley Block, informed by the Dolerite Dyke
Model. To facilitate this program the Company will develop up to
two new drill access roads from the existing mountain surface
infrastructure .
-- The programme will also include the underground assessment of
extensions to the Target and Mountain Blocks, including the
footwall vein, in order to further refine the Company's geological
model and resource growth target areas.
-- Subject to drill results, the 2022 exploration programme will
provide AEX with the optionality of investigating additional
underground infrastructure and an underground bulk sample in 2023
with an option for toll treatment off-site 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 possible mine construction in 2024/2025, subject
to permitting and funding.
-- The Company has started discussion with mine contractors in
order to mitigate delays, as the lead time is on average 12 months
in the industry today.
-- 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
-- The 2021 exploration results have significantly increased the
Vagar Ridge footprint, confirming its potential to be a
multi-million ounce prospect, adding to AEX's substantial portfolio
of prospective gold assets.
-- AEX believes that Vagar Ridge may host up to four Orogenic
gold veins with new rock chip samples giving up to 86.7 g/t
gold.
-- 2022 activity: AEX intends to mobilise two helicopter
supported drill rigs to conduct the first core drilling on the
discovery since 2013. This programme will aim to test the scale of
the discovery and prepare it for more resource focused drilling. It
will also aim to develop more evidence of Intrusion Related Gold
mineralisation style across the target.
Vagar Licence Targets
-- The 2021 Vagar Licence exploration programme included
hyperspectral imaging, reconnaissance sampling and a 385 km(2) high
resolution airborne magnetic survey, interpreted by SRK
Consulting.
-- These results has defined a significant deformation zone that
extends for more than 50 km across the Vagar licence and into AEX's
neighbouring licences, highlighting five further high priority
targets similar to Vagar Ridge
-- 2022 activity: These five targets will be further
investigated and sampled this year with a view to providing
potential further drill targets in the next few years, depending
upon results.
Nanoq Gold
-- 2022 activity: Subject to the 2021 Nanoq exploration results
which are currently being analysed and are expected to be released
imminently, the Company intends to prepare for an airborne
geophysical survey across the Nanoq discovery and across an
interpreted structural corridor linking it to the Jokum's Shear
target 20km to the south.
Eagle's Nest (Anoritooq licence)
-- 2022 activity: Subject to the assessment of the 2021
exploration results in the area which are still being analysed, the
Company intend to continue its early-stage geological
reconnaissance mapping and sampling aimed at making further
Orogenic gold discoveries north of Nalunaq.
Strategic Mineral Targets 2022 Exploration Work Programme:
General
-- Significant 3,527.75 km (2) mineral licence area has been
acquired from Orano, taking AEX's total land package in South
Greenland to 7,615.85km (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.
-- AEX's ongoing Mineral System Modelling highlights the
potential of Southern Greenland to host significant strategic metal
deposits. These new licences sit within a 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
-- 2021 Work programs at Sava have identified a IOCG (Iron
Oxide, Copper Gold) and Porphyry Copper belt situated in close
proximity to the international airport at Narsarsaq. North Sava has
provided historical grab samples up to 382 g/t Gold (Au), 3.4%
Copper (Cu), 3.7% Zinc (Zn), 100 g/t Silver (Ag), 19% Niobium (Nb),
2.2% Zirconium (Zr).
-- 2022 activity: at Sava a maiden scout core drilling programme
will test the mineralisation and alteration assemblage at the three
targets developed during the course of 2021. These targets will
also be further extended by additional geochemical sampling across
the licence area. At North Sava, the Company will build upon the
interpretations of Orano and conduct a remote sensing programme and
airborne geophysical survey that will provide coverage across both
licences and it is hoped that this will indicate further high
priority targets for 2023.
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 host the 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).
-- 2022 activity: the Company intend to conduct an airborne
geophysical (ZTEM) survey over the intrusion in order to understand
its scale, structure and potential for deep sulphide mineralisation
signatures. This 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.
Kobberminebugt
-- 2022 activity: The Company intend to conduct further
geological reconnaissance mapping and sampling in and around the
former producing Josva copper mine in order to understand the style
of mineralisation and extent potential. Further occurrences will
also be explored further along the granite / sediment contact
zone.
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.
-- 2022 activity: This new critical metals target within the
licences acquired from Orano shall be visited during the 2022 field
programme 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.
In addition to these named programmes, the Company intends to
assess numerous other gold targets within the Nanortalik gold belt
and several identified graphite targets similar to that already
being explored by AEX at Nørrearm and GreenRoc at the Amitsoq
Project.
AEX Infrastructure support
-- The new all-weather 50-person camp remains open and the first
field crew is already on site preparing for the 2022 field
season.
-- The Company have a drilling contract in place with two rigs
already on site with a further two rigs inbound.
-- The Company is also finalising contracts with ALS
Geochemistry to install a Containerised Preparation Laboratory
(CPL) at Nalunaq to service the company's requirements through 2022
and beyond. This laboratory will allow the Company to provide more
regular samples for full chemical assay and provide shorter
assaying lead-times that are significantly stretched globally.
AEX Gold Financial Results
-- The Corporation had a cash balance of $23.8 million at March
31, 2022 ($27.3 million at December 31, 2021), with no debt, and
total working capital of $22.6 million ($25.2 million at December
31, 2021).
-- Exploration and evaluation expenses during the period were
$1.0 million (Q1 2021: $1.2 million), predominantly on the Nalunaq
Property.
-- General and administrative expenses during the period were
$3.0 million (Q1 2021: $1.6 million), with the increase as a result
of share-based compensation granted to it s officer s , employees
and consultants .
Selected Financial Information
The following selected financial data is extracted from the
Financial Statements for the three months ended March 31, 2022.
Financial Results
Three months
ended March 31,
2022 2021
------------
$ $
------------ ------------
Exploration and evaluation
expenses 1,010,330 1,247,147
General and administrative 2,988,769 1,585,071
Net loss and comprehensive
loss (4,135,498) (3,289,052)
Basic and diluted loss per
common share (0.02) (0.02)
------------ ------------
Financial Position
As at March 31, As at December
2022 31, 2021
$ $
---------------- ---------------
Cash on hand 23,823,441 27,324,459
Total assets 39,195,469 42,781,664
Total current liabilities 1,207,103 2,100,084
Shareholders' equity 37,276,866 39,968,502
Working capital 22,812,025 25,542,242
---------------- ---------------
Enquiries:
AEX Gold Inc.
Eldur Olafsson, Director and CEO
+354 665 2003
eo@aexgold.com
Eddie Wyvill, Investor Relations
+44 (0) 7713 126727
ew@aexgold.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
Emily Hall
Charlie Dingwall+44 (0) 20 3757 4980
For Company updates:
Follow @AexGold on Twitter
Follow AEX Gold Inc. on LinkedIn
AEX Gold Inc: Unaudited Condensed Interim Consolidated Financial
Statements for the Three Months Ended March 31, 2022
AEX Gold Inc.
Consolidated Statements of Financial Position
(Unaudited, in Canadian Dollars)
As at As at December
March 31, 31,
Notes 2022 2021
--------------------------------------------------- ------------ ---------------
$ $
ASSETS
Current assets
Cash 23,823,441 27,324,459
Sales tax receivable 36,054 51,250
Prepaid expenses and others 159,633 266,617
Total current assets 24,019,128 27,642,326
Non-current assets
Deposit 27,944 9,805
Escrow account for environmental monitoring 409,727 424,637
Mineral properties 3 62,244 62,244
Capital assets 4 14,676,426 14,642,652
Total non-current assets 15,176,341 15,139,338
---------------------------------------------------- ------------ ---------------
TOTAL ASSETS 39,195,469 42,781,664
---------------------------------------------------- ------------ ---------------
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 1,137,933 2,049,249
Lease liabilities - current portion 5 69,170 50,835
-------------------------------------------- ------ ------------ ---------------
Total current liabilities 1,207,103 2,100,084
Non-current liabilities
Lease liabilities 5 711,500 713,078
Total non-current liabilities 711,500 713,078
Total liabilities 1,918,603 2,813,162
Equity
Capital stock 88,500,205 88,500,205
Contributed surplus 4,744,585 3,300,723
Accumulated other comprehensive loss (36,772) (36,772)
Deficit (55,931,152) (51,795,654)
---------------------------------------------------- ------------ ---------------
Total equity 37,276,866 39,968,502
---------------------------------------------------- ------------ ---------------
TOTAL LIABILITIES AND EQUITY 39,195,469 42,781,664
---------------------------------------------------- ------------ ---------------
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
Three months
ended March 31,
----------------------------------------- ------ --- ------------------------
Notes 2022 2021
----------- --------------------------------------- ----------- -----------
$ $
Expenses
Exploration and evaluation expenses 7 1,010,330 1,247,147
General and administrative 8 2,988,769 1,585,071
Foreign exchange loss 147,188 490,599
Operating loss 4,146,287 3,322,817
Other expenses (income)
Interest income (20,325) (44,070)
Finance costs 9,536 10,305
------------------------------------------------------ ----------- -----------
Net loss and comprehensive loss (4,135,498) (3,289,052)
------------------------------------------------------ ----------- -----------
Weighted average number of common shares
outstanding - basic and diluted 177,098,737 177,098,737
Basic and diluted loss per common share (0.02) (0.02)
------------------------------------------------------ ----------- -----------
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
Number of Accumulated
common shares Capital Contributed other comprehensive Total
outstanding Stock surplus loss Deficit 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 - - - - (3,289,052) (3,289,052)
-------------------------- -------------- ---------- ----------- -------------------- ------------ -----------
Balance at March 31, 2021 177,098,737 88,500,205 2,925,952 (36,772) (30,395,467) 60,993,918
-------------------------- -------------- ---------- ----------- -------------------- ------------ -----------
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 - - - - (4,135,498) (4,135,498)
Stock-based compensation - - 1,443,862 - - 1, 443 ,862
-------------------------- -------------- ---------- ----------- -------------------- ------------ -----------
Balance at March 31, 2022 177,098,737 88,500,205 4,744,585 (36,772) (55,931,152) 37,276,866
-------------------------- -------------- ---------- ----------- -------------------- ------------ -----------
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
Three months
Notes ended March 31,
---------------------------------------------- ------ ------------------------
2022 2021
----------------------------------------------------- ----------- -----------
$ $
Operating activities
Net loss for the period (4,135,498) (3,289,052)
Adjustments for:
Depreciation 4 203,970 71,862
Stock-based compensation 1,443,862 -
Other expenses (income) 9,048 -
Foreign exchange loss 145,361 504,799
------------------------------------------------------ ----------- -----------
(2,333,257) (2,712,391)
Changes in non-cash working capital items:
Sales tax receivable 15,196 (5,004)
Prepaid expenses and others 106,984 23,580
Trade and other payables (905,619) 96,077
------------------------------------------------------ ----------- -----------
(783,439) 114,653
----------------------------------------------------- ----------- -----------
Cash flow used in operating activities (3,116,696) (2,597,738)
------------------------------------------------------ ----------- -----------
Investing activities
Acquisition of capital assets 4 (247,834) (594,722)
Deposit on order - (3,306,586)
Cash flow used in investing activities (247,834) (3,901,308)
------------------------------------------------------ ----------- -----------
Financing activities
Principal repayment - lease liabilities 5 (5,550) (16,168)
Cash flow from financing activities (5,550) (16,168)
------------------------------------------------------ ----------- -----------
Net change in cash before effects of exchange
rate changes on cash during the period (3,370,080) (6,515,214)
Effects of exchange rate changes on cash (130,938) (346,875)
------------------------------------------------------ ----------- -----------
Net change in cash during the period (3,501,018) (6,862,089)
Cash, beginning of period 27,324,459 61,874,999
------------------------------------------------------ ----------- -----------
Cash, end of period 23,823,441 55,012,910
------------------------------------------------------ ----------- -----------
Supplemental cash flow information
Interest received 20,325 44,070
Additions in capital assets included in trade
and other payables 48,290 -
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
1. NATURE OF OPERATIONS, 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.
These unaudited condensed interim consolidated financial
statements for the three months ended March 31, 2022 ("Financial
Statements") were approved by the Board of Directors on May 27,
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 As at
March 31,
Additions 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 (previously called Kangerluarsuk) 6,562 - 6,562
Total mineral properties 62,244 - 62,244
--------------------------------------- --------------- ---------- -----------
As at December
31, 2020 As at
December 31,
Additions 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 (previously called Kangerluarsuk) 6,562 - 6,562
Total mineral properties 62,244 - 62,244
--------------------------------------- --------------- ---------- --------------
4. CAPITAL ASSETS
Field Vehicles Equipment (including Construc-tion Right-of-use Total
equipment and rolling software) In Progress assets
and infrastruc- stock
ture
$ $ $ $ $ $
----------------- ---------------- ------------- --------------------- --------------- ------------- -----------
Three months
ended March 31,
2022
Opening net book
value 1,989,114 4,304,709 156,011 7,452,668 740,150 14,642,652
Additions - - 173,207 69,417 - 242,624
Adjustment - - - - (4,880) (4,880)
Depreciation (64,592) (109,614) (9,987) - (19,777) (203,970)
----------------- ---------------- ------------- --------------------- --------------- ------------- -----------
Closing net book
value 1,924,522 4,195,095 319,231 7,522,085 715,493 14,676,426
----------------- ---------------- ------------- --------------------- --------------- ------------- -----------
As at March 31,
2022
Cost 2,351,041 4,605,320 359,085 7,522,085 836,200 15,673,731
Accumulated
depreciation (426,519) (410,225) (39,854) - (120,707) (997,305)
----------------- ---------------- ------------- --------------------- --------------- ------------- -----------
Closing net book
value 1,924,522 4,195,095 319,231 7,522,085 715,493 14,676,426
----------------- ---------------- ------------- --------------------- --------------- ------------- -----------
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 $181,833 ($49,316 for the
three months ended March 31, 2021) was expensed as exploration and
evaluation expenses during the three months ended March 31,
2022.
As at March 31, 2022, the Corporation had capital asset purchase
commitments, net of deposit on order, of $nil ($6,597,326 as at
March 31, 2021). These commitments related to purchases of
equipment, infrastructure and vehicles.
As of March 31, 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
March 31
2022
---------------------------------------- -------------
$
Balance beginning 763,913
Principal repayment (5,550)
Adjustment 22,307
---------------------------------------- -------------
Balance ending 780,670
Non-current portion - lease liabilities (711,500)
Current portion - lease liabilities 69,170
---------------------------------------- -------------
6. STOCK OPTIONS
An incentive stock option plan (the "Plan") was approved
initially in 2017 and renewed by shareholders on June 9, 2021. 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 to 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)
Changes in stock options are as follows:
Three months ended
March 31, 2022
------------------------- -----------------------------
Weighted
Number of average exercise
options price
------------------------- ---------- -----------------
$
Balance, beginning 6,935,000 0.51
Granted 4,100,000 0.60
Expired - -
Balance, end 11,035,000 0.55
------------------------- ---------- -----------------
Balance, end exercisable 10,901,666 0.55
------------------------- ---------- -----------------
Stock options outstanding and exercisable as at March 31, 2022
are as follows:
Number of options Number of options Exercise
outstanding exercisable price Expiry date
----------------- ----------------- -------- -------------------
$
1,160,000 1,160,000 0.50 July 13, 2022
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
11,035,000 10,901,666
----------------- ----------------- -------- -------------------
7. EXPLORATION AND EVALUATION EXPENSES
Three months
ended March 31,
------------------------------------ --- ---------------------
2022 2021
--------------------------------------- ---------- ---------
$ $
Geology 154,421 143,538
Drilling 40,462 -
Analysis 141,382 79,219
Transport 89,139 957
Logistic support 11,752 21,202
Insurance 13,200 8,663
Maintenance infrastructure 370,247 -
Project Engineering costs - 931,866
Government fees 7,894 12,386
Depreciation 181,833 49,316
----------------------------------------- ---------- ---------
Exploration and evaluation expenses 1,010,330 1,247,147
----------------------------------------- ---------- ---------
8. GENERAL AND ADMINISTRATION
Three months
ended March 31,
--------------------------------- --- --------------------
2022 2021
------------------------------------ --------- ---------
$ $
Salaries and benefits 639,999 387,508
Stock-based compensation 1,443,862 -
Director's fees 157,000 119,500
Professional fees 275,708 556,355
Marketing and investor relations 168,867 165,723
Insurance 101,019 117,965
Travel and other expenses 145,913 130,209
Regulatory fees 34,264 85,265
Depreciation 22,137 22,546
-------------------------------------- --------- ---------
General and administration 2,988,769 1,585,071
-------------------------------------- --------- ---------
9. SUBSEQUENT EVENTS
9.1 Options granted
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.
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 these licenses. The acquisition is subject to approval
from the Greenland Government.
Further Information:
About AEX
AEX's principal business objectives are the identification,
acquisition, exploration and development of gold properties in
Greenland. The Company's principal asset is a 100% interest in the
Nalunaq Project, an advanced exploration stage property with an
exploitation licence including the previously operating Nalunaq
gold mine. The Company has a portfolio of gold assets covering
7,615.85km(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 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 AEX
Gold and a Chartered Geologist with the Geological Society of
London, and as such a Qualified Person as defined by NI 43-101
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END
FR SEDEFUEESESI
(END) Dow Jones Newswires
May 30, 2022 02:01 ET (06:01 GMT)
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