TIDMAMRQ
RNS Number : 1433X
Amaroq Minerals Ltd
25 August 2022
AMAROQ Minerals - Q2 Financial Results and Operational
Update
TORONTO, ONTARIO - August 25(th) - 2022 - Amaroq Minerals Ltd.
("Amaroq" or the "Company" or the "Corporation") (AIM, TSXV: AMRQ),
the independent mining company with an unrivalled land package of
gold and strategic mineral assets covering an area of 7,866.85
km(2) in Southern Greenland, is pleased to provide an update on its
Q2 financials and operational activities in the first half of
2022.
H1 2022 highlights
Precious Metals targets
-- Nalunaq: Construction of mountain access roads required to
facilitate the 2022 core drilling programme completed ahead of
schedule and under budget.
-- Nalunaq: Drilling ahead of schedule with 7,300m of core
drilling out of a scheduled 9,100m completed across the Valley
Block with geological logging and sampling now underway. 2022
drilling focused on providing further resource confidence with a
view to increasing the Mineral Resource Estimate (MRE) in due
course.
-- Nalunaq: Preliminary Economic Assessment (PEA) commenced to
assess bulk sample and eventual mine re-opening optionality.
-- Vagar Ridge: Exploration aimed at understanding the styles
and geological controls on mineralisation continues, with 65% of
planned core drilling now complete despite unseasonal weather
during the period, targeting both Orogenic gold and Intrusion
Related Gold mineralisation.
-- Vagar Licence: Further geological mapping and sampling across
new targets identified by the 2021 exploration programme scheduled
for later in the season.
-- Nanoq: Contractors are mobilising to conduct an airborne
geophysical survey across the target, and along an interpreted 20km
structural corridor linking the discovery to the Jokum's Shear
gold/copper occurrence. This area is now held by Amaroq under the
newly acquired Siku licence securing access to multiple potential
Orogenic gold targets.
Strategic Mineral Targets
-- Sava: A 320m maiden scout core drilling programme to test
Iron Oxide, Copper, Gold (IOCG) mineralisation has targeted two
areas and samples are due to be dispatched to ALS Geochemistry
imminently.
-- North Sava: Contractors are mobilising to conduct an airborne
geophysical survey across North Sava to extend geological
understanding from Sava into the former Orano licence.
-- Stendalen: Amaroq is in negotiations to conduct an MT geophysical survey across this Iron-Vanadium-Titanium layered intrusive with additional Nickel and Copper potential.
-- Regional: Further geological reconnaissance and sampling
across the Eagle's Nest gold target, Kobbermineburgt copper targets
and the Paatusoq Rare Earth target are scheduled for later in the
2022 season.
Operational Update
-- Further investment in operational infrastructure and
equipment upgrades. With the 50 person all-weather camp in place at
Nalunaq and a satellite field camp in situ at Vagar Ridge, the
Company is now able to function more efficiently and to shorter
operational lead-times. The ALS on-site Containerised Preparation
Laboratory (CPL) has been installed and commissioned with the first
samples being dispatched.
-- Operational efficiency across all aspects of the Company's
Greenland assets significantly increased through key longer term
contracts with carefully selected service providers.
Corporate Update
-- Significant 3,527.75 km(2) mineral licence area has been
acquired from Orano substantially increasing the Company's exposure
to Base and Strategic Minerals. When coupled with the newly awarded
251 km(2) Siku licence, takes Amaroq's total land package in South
Greenland to 7,866.85km(2) .
-- Establishment of non-binding Joint Venture agreement with
ACAM LP for the exploration and development of Amaroq's Strategic
Mineral assets for a combined contribution of GBP36.7 million with
initial equity funding of GBP18 million following completion.
-- Cash balance of $19.5 at June 30, 2022.
-- Approval of special resolution to change the name of the Company to Amaroq Minerals Ltd.
Eldur Olafsson, CEO of Amaroq Minerals, commented:
"I am pleased to present an update on our activities for Q2
2022. Our field season for 2022 is well underway and we are making
solid progress with our drilling programmes at Nalunaq, Vagar Ridge
and Sava. We expect to share the results from this programme with
the market in late Q3 to Q4.
We are progressing with our strategic mineral exploration
programme in Southern Greenland with the support of our partners.
We remain focused on accelerating Greenland's contribution to the
energy transition as a frontier jurisdiction at a time when access
to these critical minerals for Western Governments and companies is
limited by Chinese and Russian control of supply.
We continue to invest in our highly qualified senior management
team, as well as selecting strong and reliable partners for
contract appointments. In addition, we are now benefitting from
considerably upgraded corporate governance systems and a
strengthened Board, which continues to guide the strategic vision
of our business."
Precious Metals 2022 Exploration Programme:
Nalunaq
-- The 2022 exploration programme is targeting further resource
development through both infill and strike extension drilling
across the Valley Block, informed by the Dolerite Dyke Model
developed and tested in 2021.
-- Two new mountain access roads to facilitate the extension
drilling have been completed ahead of schedule and under budget
(totalling $0.74m) and now are being utilised by two core drill
rigs.
-- To date approximately 7,300m of core (2,600m infill and
4,700m extension) drilling has been completed and geological
logging and sampling is now underway. A further 1,800m of core
drilling is scheduled for 2022.
-- ALS has completed the construction and commissioned an
on-site Containerised Preparation Laboratory (CPL) at Nalunaq to
oversee the preparation of all samples ahead of shipment to Ireland
for chemical assaying.
-- Amaroq geological teams have re-entered the historic mine to
assess the extension opportunities within the Mountain Block and
have identified further surface outcrops of the Main Vein, which
they intend to channel sample during this season to further define
this extension area.
-- Amaroq has continued to work with SRK to adapt the MRE
procedures to account for the Dolerite Dyke Model and the 2020 and
2021 drilling results with the aim of providing a further update to
the contained resources later in 2022.
-- A PEA for the project to assess bulk sample and eventual mine
re-opening optionality has been commenced.
-- Subject to results from the 2022 exploration programme,
Amaroq will continue to assess additional underground
infrastructure and underground bulk sample options for 2023, which
may include off-site toll treatment, subject to discussions with
the Government of Greenland. This would be used as a development
step to increase resource confidence and de-risk the resource ahead
of potential mine construction in 2024/2025.
-- The Corporation remains in discussion with mine development
contractors in order to mitigate programme delays, as the industry
average lead time today is 12 months.
-- The Company is in the process of updating its Environmental
Impact Assessment (EIA) and Social Impact Assessment (SIA), which
as previously announced it expects to complete over the course of
the next year.
Vagar Ridge
-- Following the exploration conducted in 2021, which
significantly increased the Vagar Ridge footprint, Amaroq have
commenced an approximately 2,000m core drilling programme across
the target to further understand its scale and geological controls
on mineralisation as a necessary step towards defining potential
resources.
-- At the time of reporting, approximately 1,300m has been
drilled across four drillholes with geological logging and sampling
in progress.
-- Geological reconnaissance and mapping is also underway over
the area, and Amaroq aims to supplement the drilling with a chip
channel sampling programme across the southern low grade granite
hosted areas of Vagar Ridge.
-- Unseasonal low cloud and sea fog in the last month has
hampered helicopter availability, a supply and health and safety
requirement for drilling in this remote location. This has slowed
drilling and delayed completion of the programme. Amaroq is looking
to reduce the impact of this by deploying a remote tented camp on
site.
-- Amaroq is utilising its experience and strong regional
understanding of South Greenland to progress with drilling and gain
a fuller understanding of the targets, and intends to update the
market on developments in due course.
Vagar Licence Targets
-- Due to the unseasonal weather, Amaroq has not yet commenced
the planned regional investigation of the target areas developed
following the interpretation of the 2021 geophysical programme,
which defined a significant deformation zone that extends for more
than 50km across the Vagar licence and into Amaroq's neighbouring
licences. This is currently scheduled for later in September.
Nanoq Gold
-- Amaroq's geophysical contractor New Resolution Geophysics
(NRG) began mobilising helicopter and equipment to Southern
Greenland on 22(nd) August and plans to commence an approximately
4,500 line km magnetic, radiometric and gravity survey over the
Nanoq target and the area connecting this target to Jokum's Shear
in the Nanortalik gold belt.
-- This area (located within the Corporation's newly awarded
251km(2) Siku mineral licence) hosts an interpreted 20km long
regional structure that could host multiple Orogenic gold
targets.
Eagle's Nest
-- Following an assessment of the 2021 exploration results in
the area, which are still being analysed, the Company intends to
continue its early stage geological reconnaissance mapping and
sampling aimed at making further Orogenic gold discoveries north of
Nalunaq.
-- This field work is provisionally scheduled for mid-September.
Strategic Mineral Targets 2022 Exploration Work Programme :
General
-- Significant 3,527.75 km (2) mineral licence area has been
acquired from Orano, which, with the newly awarded Siku licences,
takes Amaroq's total land package in South Greenland to 7,866.85km
(2) and substantially increasing the Company's exposure to Base and
Strategic Minerals. The acquisition means the Company will become
the largest licence holder in South Greenland, and the third
largest in Greenland, after Anglo American and Greenfields
Exploration.
-- Amaroq's ongoing Mineral System Modelling highlights the
potential of Southern Greenland to host significant strategic metal
deposits. These new licences sit within a n interpreted Laurasian
Mineral Belt connecting Eastern Canada through Greenland to
Scandinavia that hosts World Class mineral deposits such as
Voisey's Bay (Canada), Gardar Province (Greenland), and the Kiruna
IOCG belt (Scandinavia). Work programmes at Sava have illustrated
Iron Ore, Copper, Gold ("IOCG") style signatures across three
target areas.
Sava and North Sava
-- Following the successful 2021 season, which identified three
initial priority targets across the Sava IOCG and Porphyry Copper
licence, Amaroq has completed a 320m scout core drilling programme
over two drillholes on Targets West and Target South.
-- These samples have subsequently been prepared in the ALS CPL
at Nalunaq and are awaiting dispatch to Ireland for chemical
assaying.
-- A further sample has been sent to Durham University for
geological age dating to assess if the observed mineralisation is
related to the Gardar Intrusion suite that host the significant
deposits at Kavanefjeld and Tanbreez.
-- The Amaroq geological team has also conducted further surface
exploration and sampling aimed at expanding the current targets and
defining further targets for future investigation.
-- Building upon previous Orano geological interpretations,
Amaroq intends to conduct a similar geophysical survey to that
completed over Sava across the newly acquired North Sava licence.
This approximately 5,000 line km programme will be conducted by NRG
following completion of the Nanoq survey.
-- Multiple zones of veining and brecciation have been
discovered containing Copper Iron Sulphide mineralisation including
chalcopyrite and bornite mapped at surface at Sava, giving further
evidence of IOCG occurrence.
The Stendalen Iron-Vanadium-Titanium layered intrusive
-- Previously explored by GEUS, Softrock Mineral and NunaMineral
A/S. This intrusive is 8km in diameter and hosts a magnetic layer
up to 20m thick which has provided historical samples yielding
between 1-10.5% Titanium Dioxide (TiO (2) (average of 4.8%) and
226-5,753ppm Vanadium (V) (average 2,335ppm).
-- Stendalen also hosts potential for Nickel (Ni), Copper (Cu)
and Platinum Group Element (PGE) mineralisation with grab samples
proving grades of 0.8% Copper (Cu), 0.5% Nickel (Ni) and 0.1%
Cobalt (Co).
-- The Company is in negotiations to conduct an airborne
geophysical (MT) survey over the intrusion in order to understand
its scale, structure and potential for deep sulphide mineralisation
signatures. This survey will be coupled with a ground assessment of
the reported Ni/Cu sulphide mineralisation in the contact areas of
the intrusion. Finally, the Company will assess drill locations and
site logistics ahead of a core drilling programme in 2023 subject
to results.
The Paatusoq Rare Earth Element, Niobium, Tantalum, Zirconium
project
-- This syenite complex is 20 km in diameter covering an area of
240 km (2) within an unexplored section of the Gardar Province.
-- Amaroq plans to visit this new critical metals target within
the licences acquired from Orano during a regional exploration
programme in September. The aim of this will be to conduct
additional geochemical sampling to test the styles of
mineralisation and its relationship to the wider Gardar Province
that also hosts the Kvanefjeld and Tanbreez rare earth
projects.
Amaroq Minerals Infrastructure support
-- Amaroq has successfully continued the use of its all-weather
50-person camp as well as operating a small satellite tented camp
at Vagar Ridge to facilitate drilling there.
-- Since June, Amaroq has been operating with four drill rigs
across three sites and the Company is now assessing rig
requirements for 2023.
-- The Company has also finalised contracts with ALS
Geochemistry to install the Containerised Preparation Laboratory
(CPL) at Nalunaq, which has been fully installed and
commissioned.
-- Amaroq is experiencing material increases in its operational
efficiency during the 2022 season as a result of partnering with
key, carefully selected, contractors across its Greenland business.
This has resulted in programme objectives being meet ahead of
schedule, increased drilling rates, greater logistical flexibility
and aims to result in quicker return on sample results through the
second half of 2022.
Amaroq Minerals Financial Results
-- The Corporation had a cash balance of $19.5 million at June
30, 2022 ($23.8 million at March 31, 2022), with no debt, and total
working capital of $16.8 million ($22.6 million at March 31,
2022).
-- Exploration and evaluation expenses during the period were
$5.4 million (Q2 2021: $3.2 million), predominantly on the Nalunaq
Property.
-- General and administrative expenses during the period were
$5.1 million (Q2 2021: $4.0 million).
Selected Financial Information
The following selected financial data is extracted from the
Financial Statements for the six months ended June 30, 2022.
Financial Results
Six months
ended June 30,
2022 2021
------------
$ $
------------ -----------
Exploration and evaluation
expenses 5,435,831 3,245,196
General and administrative 5,086,708 4,038,649
Net loss and comprehensive
loss (10,460,137) (7,866,015)
Basic and diluted loss per
common share (0.06) (0.04)
------------ -----------
Financial Position
As at June 30, 2022 As at December 31,
2021
$ $
------------------- ------------------
Cash on hand 19,494,000 27,324,459
Total assets 34,618,121 42,781,664
Total current liabilities 2,880,555 2,100,084
Shareholders' equity 31,043,925 39,968,502
Working capital 16,678,108 25,542,242
------------------- ------------------
Enquiries:
Amaroq Minerals ltd.
Eldur Olafsson, Director and CEO
+354 665 2003
eo@amaroqminerals.com
Eddie Wyvill, Investor Relations
+44 (0) 7713 126727
ew@amaroqminerals.com
Stifel Nicolaus Europe Limited (Nominated Adviser and
Broker)
Callum Stewart
Simon Mensley
Ashton Clanfield
+44 (0) 20 7710 7600
Panmure Gordon (UK) Limited (Joint Broker)
John Prior
Hugh Rich
Dougie Mcleod
+44 (0) 20 7886 2500
SI Capital Limited (Joint Broker)
Nick Emerson
Charlie Stephenson
+44 (0) 1483 413500
Camarco (Financial PR)
Billy Clegg
Elfie Kent
Charlie Dingwall
+44 (0) 20 3757 4980
For Company updates:
Follow @Amaroqminerals on Twitter
Follow Amaroq Minerals Inc. on LinkedIn
Amaroq Minerals Ltd: Unaudited Condensed Interim Consolidated
Financial Statements for the Three Months Ended June 30, 2022
Consolidated Statements of Financial Position
(Unaudited, in Canadian Dollars)
As at As at December
June 30, 31,
Notes 2022 2021
--------------------------------------------------- ------------ ---------------
$ $
ASSETS
Current assets
Cash 19,494,000 27,324,459
Sales tax receivable 84,429 51,250
Prepaid expenses and others 84,234 266,617
Total current assets 19,662,663 27,642,326
Non-current assets
Deposit 27,944 9,805
Escrow account for environmental monitoring 397,115 424,637
Mineral properties 3 62,244 62,244
Capital assets 4 14,468,155 14,642,652
Total non-current assets 14,955,458 15,139,338
---------------------------------------------------- ------------ ---------------
TOTAL ASSETS 34,618,121 42,781,664
---------------------------------------------------- ------------ ---------------
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 2,810,526 2,049,249
Lease liabilities - current portion 5 70,029 50,835
-------------------------------------------- ------ ------------ ---------------
Total current liabilities 2,880,555 2,100,084
Non-current liabilities
Lease liabilities 5 693,641 713,078
Total non-current liabilities 693,641 713,078
Total liabilities 3,574,196 2,813,162
Equity
Capital stock 88,595,905 88,500,205
Contributed surplus 4,740,583 3,300,723
Accumulated other comprehensive loss (36,772) (36,772)
Deficit (62,255,791) (51,795,654)
---------------------------------------------------- ------------ ---------------
Total equity 31,043,925 39,968,502
---------------------------------------------------- ------------ ---------------
TOTAL LIABILITIES AND EQUITY 34,618,121 42,781,664
---------------------------------------------------- ------------ ---------------
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
Consolidated Statements of Comprehensive Loss
(Unaudited, in Canadian Dollars)
Three months Six months
ended June 30, ended June 30,
----------------------------- ------ ------------------------ -------------------------
Notes 2022 2021 2022 2021
------------------------------------ ----------- ----------- ------------ -----------
Expenses
Exploration and evaluation
expenses 7 4,425,501 1,998,049 5,435,831 3,245,196
General and administrative 8 2,097,937 2,453,578 5,086,708 4,038,649
Foreign exchange loss (gain) (173,880) 157,092 (26,693) 647,691
----------- ----------- ------------ -----------
Operating loss 6,349,558 4,608,719 10,495,846 7,931,536
Other expenses (income)
Interest income (34,392) (41,859) (54,717) (85,929)
Finance costs 9,473 10,103 19,008 20,408
------------------------------------- ----------- ----------- ------------ -----------
Net loss and comprehensive
loss (6,324,639) (4,576,963) (10,460,137) (7,866,015)
------------------------------------- ----------- ----------- ------------ -----------
Weighted average number of
common shares outstanding
- basic and diluted 177,109,616 177,098,737 177,104,206 177,098,737
Basic and diluted loss per
common share (0.04) (0.03) (0.06) (0.04)
------------------------------------- ----------- ----------- ------------ -----------
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
Consolidated Statements of Changes in Equity
(Unaudited, in Canadian Dollars)
Number of 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 - - - - (7,866,015) (7,866,015)
Stock-based compensation - - 360,000 - - 360,000
------------------------- -------------- ---------- ----------- -------------------- ------------ ------------
Balance at June 30, 2021 177,098,737 88,500,205 3,285,952 (36,772) (34,972,430) 56,776,955
------------------------- -------------- ---------- ----------- -------------------- ------------ ------------
Balance at January 1,
2022 177,098,737 88,500,205 3,300,723 (36,772) (51,795,654) 39,968,502
Net loss and
comprehensive
loss - - - - (10,460,137) (10,460,137)
Options exercised 110,000 95,700 (40,700) - - 55,000
Stock-based compensation - - 1,480,560 - - 1, 480,560
------------------------- -------------- ---------- ----------- -------------------- ------------ ------------
Balance at June 30, 2022 177,208,737 88,595,905 4,740,583 (36,772) (62,255,791) 31,043,925
------------------------- -------------- ---------- ----------- -------------------- ------------ ------------
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
Consolidated Statements of Cash Flows
(Unaudited, in Canadian Dollars)
Six months
Notes ended June 30,
---------------------------------------------- ------ --------------------------
2022 2021
----------------------------------------------------- ------------ ------------
$ $
Operating activities
Net loss for the period (10,460,137) (7,866,015)
Adjustments for:
Depreciation 4 418,075 143,723
Stock-based compensation 1,480,560 360,000
Other expenses (income) 9,048 -
Foreign exchange (13,571) 644,430
------------------------------------------------------ ------------ ------------
(8,566,025) (6,717,862)
Changes in non-cash working capital items:
Sales tax receivable (33,179) (1,732)
Prepaid expenses and others 182,383 280,536
Trade and other payables 815,210 231,188
------------------------------------------------------ ------------ ------------
964,414 509,992
----------------------------------------------------- ------------ ------------
Cash flow used in operating activities (7,601,611) (6,207,870)
------------------------------------------------------ ------------ ------------
Investing activities
Acquisition of capital assets 4 (301,958) (2,084,161)
Deposit on order - (3,474,030)
Cash flow used in investing activities (301,958) (5,558,191)
------------------------------------------------------ ------------ ------------
Financing activities
Principal repayment - lease liabilities 5 (22,551) (32,539)
Exercise of stock options 55,000 -
Cash flow from financing activities 32,449 (32,539)
------------------------------------------------------ ------------ ------------
Net change in cash before effects of exchange
rate changes on cash during the period (7,871,120) (11,798,600)
Effects of exchange rate changes on cash 40,661 (482,763)
------------------------------------------------------ ------------ ------------
Net change in cash during the period (7,830,459) (12,281,363)
Cash, beginning of period 27,324,459 61,874,999
------------------------------------------------------ ------------ ------------
Cash, end of period 19,494,000 49,593,636
------------------------------------------------------ ------------ ------------
Supplemental cash flow information
Interest received 54,717 85,929
Exercise of stock options credited to capital
stock 40,700 -
The accompanying notes are an integral part of these unaudited
condensed interim consolidated financial statements.
Condensed Notes to the interim Consolidated Financial
Statements
Three and six months ended June 30, 2022 and 2021
(Unaudited, in Canadian Dollars)
NATURE OF OPERATIONS, BASIS OF PRESENTATION
Amaroq Minerals Ltd. (the "Corporation") (previously known as
AEX Gold Inc.) was incorporated on February 22, 2017, under the
Canada Business Corporations Act. The Corporation's head office is
situated at 3400, One First Canadian Place, P.O. Box 130, Toronto,
Ontario, M5X 1A4, Canada. The Corporation operates in one industry
segment, being the acquisition, exploration and development of
mineral properties. It owns interests in properties located in
Greenland. The Corporation's financial year ends on December 31.
Since July 2017, the Corporation's shares are listed on the TSX
Venture Exchange (the "TSX-V") under the AMRQ ticker and since July
2020, the Corporation's shares are also listed on the AIM market of
the London Stock Exchange ("AIM") under the AMRQ ticker.
These unaudited condensed interim consolidated financial
statements for the three and six months ended June 30, 2022
("Financial Statements") were approved by the Board of Directors on
August 24, 2022.
1.1 Basis of presentation
The Financial Statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS") as issued by
the International Accounting Standards Board ("IASB") including
International Accounting Standard ("IAS") 34, Interim Financial
Reporting. The Financial Statements have been prepared under the
historical cost convention.
The Financial Statements should be read in conjunction with the
annual financial statements for the year ended December 31, 2021
which have been prepared in accordance with IFRS as issued by the
IASB. The accounting policies, methods of computation and
presentation applied in these Financial Statements are consistent
with those of the previous financial year ended December 31,
2021.
2. CRITICAL ACCOUNTING JUDGMENTS AND ASSUMPTIONS
The preparation of the Financial Statements requires Management
to make judgments and form assumptions that affect the reported
amounts of assets and liabilities at the date of the Financial
Statements and reported amounts of expenses during the reporting
period. On an ongoing basis, Management evaluates its judgments in
relation to assets, liabilities and expenses. Management uses past
experience and various other factors it believes to be reasonable
under the given circumstances as the basis for its judgments.
Actual outcomes may differ from these estimates under different
assumptions and conditions.
In preparing the Financial Statements, the significant
judgements made by Management in applying the Corporation
accounting policies and the key sources of estimation uncertainty
were the same as those that applied to the Corporation's audited
annual financial statements for the year ended December 31, 2021.
Estimates and assumptions are continually evaluated and are based
on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances.
3. MINERAL PROPERTIES
As at December
31, 2021 As at
June 30,
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 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 6,562 - 6,562
Total mineral properties 62,244 - 62,244
------------------------- --------------- ---------- --------------
4. CAPITAL ASSETS
Field Vehicles Equipment Construc-tion Right-of-use Total
equipment and rolling (including In Progress assets
and infrastruc- stock software)
ture
$ $ $ $ $ $
------------------------- ----------------- ------------- ------------ -------------- ------------- ------------
Six months ended
June 30, 2022
Opening net book
value 1,989,114 4,304,709 156,011 7,452,668 740,150 14,642,652
Additions - - 179,041 69,417 - 248,458
Adjustment - - - - (4,880) (4,880)
Depreciation (129,183) (219,223) (29,895) - (39,774) (418,075)
------------------------- ----------------- ------------- ------------ -------------- ------------- ------------
Closing net book
value 1,859,931 4,085,486 305,157 7,522,085 695,496 14,468,155
------------------------- ----------------- ------------- ------------ -------------- ------------- ------------
As at June 30,
2022
Cost 2,351,041 4,605,320 364,919 7,522,085 836,200 15,679,565
Accumulated depreciation (491,110) (519,834) (59,762) - (140,704) (1,211,410)
------------------------- ----------------- ------------- ------------ -------------- ------------- ------------
Closing net book
value 1,859,931 4,085,486 305,157 7,522,085 695,496 14,468,155
------------------------- ----------------- ------------- ------------ -------------- ------------- ------------
4. CAPITAL ASSETS (CONT'D)
Depreciation of capital assets related to exploration and
evaluation properties is being recorded in exploration and
evaluation expenses in the consolidated statement of comprehensive
loss, under depreciation. Depreciation of $363,461 ($98,632 for the
six months ended June 30, 2021) was expensed as exploration and
evaluation expenses during the six months ended June 30, 2022.
As at June 30, 2022, the Corporation had capital asset purchase
commitments, net of deposit on order, of $nil ($6,030,167 as at
June 30, 2021). These commitments related to purchases of
equipment, infrastructure and vehicles.
As of June 30, 2022, the amount of $7,522,085 of construction in
progress is related to equipment and infrastructure received or in
storage and which will be installed at the appropriate time.
Equipment and infrastructure include process plant components that
are not yet available for use.
5. LEASE LIABILITIES
As at
June 30
2022
---------------------------------------- ------------
$
Balance beginning 763,913
Principal repayment (22,551)
Adjustment 22,308
---------------------------------------- ------------
Balance ending 763,670
Non-current portion - lease liabilities (693,641)
Current portion - lease liabilities 70,029
---------------------------------------- ------------
6. STOCK OPTIONS
An incentive stock option plan (the "Plan") was approved
initially in 2017 and renewed by shareholders on June 16, 2022. The
Plan is a "rolling" plan whereby a maximum of 10% of the issued
shares at the time of the grant are reserved for issue under the
Plan to executive officers, directors, employees and consultants.
The Board of directors grants the stock options and the exercise
price of the options shall not be less than the closing price on
the last trading day, preceding the grant date. The options have a
maximum term of ten years. Options granted pursuant to the Plan
shall vest and become exercisable at such time or times as may be
determined by the Board, except options granted to consultants
providing investor relations activities shall vest in stages over a
12-month period with a maximum of one-quarter of the options
vesting in any three-month period. The Corporation has no legal or
constructive obligation to repurchase or settle the options in
cash.
On January 17, 2022, the Corporation granted its officers,
employees and consultant 4,100,000 stock options with an exercise
price of $0.60 and expiry date of January 17, 2027. The stock
options vested 100% at the grant date. The options were granted at
an exercise price equal to the closing market price of the shares
the day prior to the grant. Total stock-based compensation costs
amount to $1,435,000 for an estimated fair value of $0.35 per
option. The fair value of the options granted was estimated using
the Black-Scholes model with no expected dividend yield, 69.38%
expected volatility, 1.51% risk-free interest rate and a 5-year
term. The expected life and expected volatility were estimated by
benchmarking comparable companies to the Corporation.
6. STOCK OPTIONS (CONT'D)
On April 20, 2022, the Corporation granted a senior employee
73,333 stock options with an exercise price of $0.75 and expiry
date of April 20, 2027. The stock options vested 100% at the grant
date. The options were granted with an exercise price equal to the
closing market price of the shares the day prior to the grant.
Total stock-based compensation costs amount to $32,267 for an
estimated fair value of $0.44 per option. The fair value of the
options granted was estimated using the Black-Scholes model with no
expected dividend yield, 68.9% expected volatility, 2.7% risk-free
interest rate and a 5-year term. The expected life and expected
volatility were estimated by benchmarking comparable companies to
the Corporation.
Changes in stock options are as follows:
Six months ended
June 30, 2022
------------------------- -----------------------------
Weighted
Number of average exercise
options price
------------------------- ---------- -----------------
$
Balance, beginning 6,935,000 0.51
Granted 4,173,333 0.60
Exercised (110,000) 0.50
Balance, end 10,998,333 0.55
------------------------- ---------- -----------------
Balance, end exercisable 10,865,000 0.55
------------------------- ---------- -----------------
Stock options outstanding and exercisable as at June 30, 2022
are as follows:
Number of options Number of options Exercise
outstanding exercisable price Expiry date
----------------- ----------------- -------- -----------------------
$
1,050,000 1,050,000 0.50 July 13, 2022 (expired)
1,360,000 1,360,000 0.45 August 22, 2023
1,820,000 1,820,000 0.38 December 31, 2025
100,000 33,333 0.50 July 5, 2026
100,000 33,333 0.50 September 13 , 2026
1,495,000 1,495,000 0.70 December 31, 2026
4,100,000 4,100,000 0.60 January 17, 2027
900,000 900,000 0.59 December 31, 2027
73,333 73,333 0.75 April 20, 2027
10,998,333 10,864,999
----------------- ----------------- -------- -----------------------
7. EXPLORATION AND EVALUATION EXPENSES
Three months Six months
ended June 30, ended June 30,
---------------------------- -------------------- --------------------
2022 2021 2022 2021
---------------------------- --------- --------- --------- ---------
$ $ $ $
Geology 651,211 562,416 805.632 705,954
Lodging and on-site support 35,255 64,523 35,255 64,523
Underground work - 18,588 - 18,589
Drilling 1,250,066 287,760 1,290,527 287,760
Analysis - 5,362 141,382 84,581
Transport 54,076 21,455 143,215 22,413
Supplies and equipment 360,158 - 360,158 -
Helicopter charter 442,824 109,024 442,824 109,024
Logistic support 90,356 64,913 102,108 86,114
Insurance (13,200) 45 - 8,707
Maintenance infrastructure 1,373,127 - 1,743,375 -
Project Engineering costs - 804,267 - 1,736,133
Government fees - 10,380 7,894 22,766
Depreciation 181,628 49,316 363,461 98,632
---------------------------- --------- --------- --------- ---------
Exploration and evaluation
expenses 4,425,501 1,998,049 5,435,831 3,245,196
---------------------------- --------- --------- --------- ---------
8. GENERAL AND ADMINISTRATION
Three months Six months
ended June 30, ended June 30,
----------------------------------- -------------------- --------------------
2022 2021 2022 2021
----------------------------------- --------- --------- --------- ---------
$ $ $ $
Salaries and benefits 601,769 667,453 1,241,768 1,054,961
Stock-based compensation 36,698 360,000 1,480,560 360,000
Director's fees 157,000 116,879 314,000 236,379
Professional fees 748,904 690,594 1,024,612 1,246,949
Marketing and industry involvement 133,811 190,609 302,678 356,332
Insurance 104,651 148,377 205,670 266,342
Travel and other expenses 238,656 172,156 384,571 302,365
Regulatory fees 43,971 84,965 78,235 170,230
Depreciation 32,477 22,545 54,614 45,091
General and administration 2,097,937 2,453,578 5,086,708 4,038,649
----------------------------------- --------- --------- --------- ---------
9. SUBSEQUENT EVENTS
9.1 Options granted
On July 14, 2022, the Corporation granted an employee 39,062
stock options with an exercise price of $0.64 and expiry date of
July 14, 2027. The stock options vested 100% at the grant date. The
options were granted with an exercise price equal to the closing
market price of the shares the day prior to the grant.
9.2 Acquisition of Significant Strategic Mineral Land Package in South Greenland
On May 12, 2022, the Corporation announced that it has acquired
mineral exploration licences No. 2020-41 and 2021-11 (the
"Licences") covering areas in South Greenland from Orano Group
("Orano") for zero upfront consideration but in exchange for a 0.5%
contractual, gross revenue royalty (GRR), based on potential future
sales of minerals exploited on the licences. The GRR is paid
annually and capped at US$10 million ("Royalties Cap"). The
Royalties Cap is subject to an annual inflation adjustment, with an
ultimate cap limited to the current market capitalisation of the
Corporation. Orano has a right of first refusal on any sales or
transfer of licenses. The acquisition is subject to approval from
the Greenland Government.
9.3 ACAM LP To Invest Upfront Capital in Strategic Mineral Asset Joint Venture with Amaroq
On June 10, 2022, the Corporation announced that it has now
signed a non-binding head of terms with ACAM LP ("ACAM") to
establish a special purpose vehicle (the "SPV") and create a joint
venture (the "JV") for the exploration and development of its
Strategic Mineral assets for a combined contribution of GBP36.7
million (circa $58.0 million). Subject to negotiation of the final
terms of the JV, ACAM will invest GBP18.0 million (circa $28.5
million) in exchange for a 49% shareholding in the SPV, with Amaroq
holding 51%. Amaroq is expected to contribute its Strategic
non-precious Mineral (i.e. non-gold) licences as well as a
contribution in kind, valued, in aggregate, at GBP18.7 million
(circa $29.5 million) in the form of site support, logistics and
overhead costs associated with utilizing its existing
infrastructure in Southern Greenland to support the JV's
activities. The transfer of these licences is subject to approval
from the Greenland Government. An option for further future funding
of GBP10.0 million (circa $16.0 million) is to be available on the
achievement of agreed milestones.
Further Information:
About Amaroq Minerals
Amaroq Minerals' principal business objectives are the
identification, acquisition, exploration, and development of gold
and strategic metal properties in Greenland. The Company's
principal asset is a 100% interest in the Nalunaq Project, an
advanced exploration stage property with an exploitation license
including the previously operating Nalunaq gold mine. The
Corporation has a portfolio of gold and strategic metal assets
covering 7,615.85km(2) , the largest mineral portfolio in Southern
Greenland covering the two known gold belts in the region. Amaroq
Minerals is incorporated under the Canada Business Corporations Act
and wholly owns Nalunaq A/S, incorporated under the Greenland
Public Companies Act.
Forward-Looking Information
This press release contains forward-looking information within
the meaning of applicable securities legislation, which reflects
the Company's current expectations regarding future events and the
future growth of the Company's business. In this press release
there is forward-looking information based on a number of
assumptions and subject to a number of risks and uncertainties,
many of which are beyond the Company's control, that could cause
actual results and events to differ materially from those that are
disclosed in or implied by such forward-looking information. Such
risks and uncertainties include but are not limited to the factors
discussed under "Risk Factors" in the Final Prospectus available
under the Company's profile on SEDAR at www.sedar.com. Any
forward-looking information included in this press release is based
only on information currently available to the Company and speaks
only as of the date on which it is made. Except as required by
applicable securities laws, the Company assumes no obligation to
update or revise any forward-looking information to reflect new
circumstances or events. No securities regulatory authority has
either approved or disapproved of the contents of this press
release. Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Inside Information
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No. 596/2014 on
Market Abuse ("UK MAR"), as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018, and Regulation
(EU) No. 596/2014 on Market Abuse ("EU MAR").
Qualified Person Statement
The technical information presented in this press release has
been approved by James Gilbertson CGeol, VP Exploration for Amaroq
Minerals and a Chartered Geologist with the Geological Society of
London, and as such a Qualified Person as defined by NI 43-101.
This information is provided by RNS, the news service of the
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END
UPDBKQBBFBKDCFB
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August 25, 2022 02:00 ET (06:00 GMT)
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