Analysts and investors who wish to participate in the webcast should register at the link here: https://brrmedia. news/AMRQ_FY23
Eldur Olafsson, CEO of Amaroq, commented:
“Following our successful fundraising in February 2024, we have increased the scope of Nalunaq’s gold allocation progression to reflect the acceleration of the mill’s transition to a nominal capacity of 300 tonnes per day.
“We experienced some operational and supply delays towards the end of 2023 due to adverse weather conditions, which continued into early 2024. This scenario has now advanced significantly and we are making operational progress.
Company Highlights in Fiscal Year 2023
Fourth Quarter 2023 Operational Highlights
Nalunaq Project KPIs
Outlook for 2024
Nalunaq Development Work Plan
Gold Exploration Projects
Strategic Mining (Amaroq 51%)
Amaroq’s financial results
Financial results
Financial situation
Ends
Inquiries: Amaroq Minerals Ltd. Eldur Olafsson, Chief Executive Officer & Chief Executive Officer eo@amaroqminerals. com Eddie Wyvill, Corporate Development (0)7713 126727 ew@amaroqminerals. com Stifel Nicolaus Europe Limited (Designated Advisor & Co-Broker) Callum Stewart Varun Talwar Simon Mensley Ashton Clanfield (0) 20 7710 7600 Panmure Gordon (UK) Limited (Joint Agent) Hugh Rich Dougie McLeod (0) 20 7886 2500 Camarco (Financial Public Relations) Billy Clegg Elfie Kent Charlie Dingwall (0) 20 3757 4980
For information, please contact:
About Amaroq Minerals
Amaroq Minerals’ number one business objectives are the identification, acquisition, exploration and progression of strategic gold and steel homes in Greenland. The Company’s principal asset is a 100 percent interest in the Nalunaq Project, a progression-stage asset with an operating license that includes the previously operated Nalunaq gold mine. The Company owns a portfolio of strategic gold and steel assets in southern Greenland that encompasses the region’s two known gold belts. Amaroq Minerals is incorporated under the Commercial Corporations Act of Canada and owns one hundred per cent of Nalunaq A. /S, incorporated under the Greenland Public Enterprises Act.
Certain statements contained in this press release constitute “forward-looking statements” or “forward-looking data” within the meaning of applicable securities laws. These statements and data involve known and unknown risks, uncertainties and other points that would possibly cause the Company’s effects, functionality or achievements to be materially different from any long-term effects, functionality or achievements, expressed or implied, through such forward-looking statements or data. Such statements may be known by the use of words such as “may,” “could,” “could,” “intends,” “expects,” “believes,” “plans,” “anticipates,” “estimates,” “scheduled,” “forecast,” “predicts” and other terminology, or imply that certain actions, events, or effects “could,” “could,” “could,” “could,” “could,” or “will be taken, occur, or achieved. “These statements reflect the Company’s existing expectations relating to events, functionalities and long-term effects and speak only as of the date of this release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is found in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Glossary
Inside information
This notice is internal information for the purposes of Article 7 of the UK edition of the Market Abuse Regulation (EU) No 596/2014 (“UK MAR”) as it is a bureaucratic component of UK domestic law under the European Union (Withdrawal) 2018 and Regulation (EU) No 596/2014 on Market Abuse (“EU MAR”).
The technical data presented in this press has been approved by James Gilbertson CGeol, Vice President of Exploration at Amaroq Minerals and Registered Geologist of the Geological Society of London, and as such a Qualified Person as explained by NI 43-101.
Amaroq Minerals Ltd.
AUDITED CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2023 and 2022
Approved on behalf of the Governing Body
The accompanying notes form an integral component of these consolidated monetary statements.
The accompanying notes form an integral component of these consolidated monetary statements.
Amaroq Minerals Ltd. (the “Company”) incorporated on February 22, 2017 under the Canada Business Companies Act. The Company’s principal place of business is located at 3400 One First Canadian Place, P. O. P. O. Box 130, Toronto, Ontario, M5X 1A4, Canadá. La Company operates in a commercial sector, i. e. , the acquisition, exploration and progression of mineral housing. It has interests in homes located in Greenland. The Company’s fiscal year ends December 31. Since July 2017, the Company’s shares have been indexed on the TSX Venture Exchange (the “TSX-V”), since July 2020, the Company’s shares have also been indexed on the AIM market of the London Stock Exchange (“AIM”) and, as of November 1, 2022, on the Nasdaq First North Growth Market Iceland which were transferred on September 21, 2023 to the Nasdaq Main Market Iceland (“Nasdaq”) under the symbol AMRQ.
These consolidated monetary statements (“Financial Statements”) were reviewed and finalized by the Board of Directors on March 26, 2024.
2. ADOPTION OF NEW AND REVISED RULES
2. 1 New and Modified Accounting Criteria for the Existing Year
Amendments to IAS 1 Presentation of Financial Statements and Statement of Practice IFRS 2 Making Materiality Judgments – Disclosure of Accounting Policies
The amendments modify the requirements of IAS 1 in relation to accounting policy disclosures. The amendments update the term “significant accounting policies” with “significant accounting policy data. “Accounting policy disclosures are a smokescreen if, when considered in conjunction with other data contained in the Company’s consolidated monetary statements, they can be expected to influence the decisions that primary users of the general monetary statements make on the basis of those monetary statements. IFRS Statement of Practice 2 provides additional voluntary guidance using a systematic four-step procedure. to help companies make meaningful decisions when preparing financial statements.
The Company followed the amendments to IAS 1 by providing disclosures on accounting policies.
2. ADOPTION OF NEW AND REVISED RULES (CONTINUED)
This amendment to IAS 8 replaces the definition of accounting estimate and replaces it with a definition of accounting estimate. Under the new definition, accounting estimates are “monetary amounts in monetary statements that are subject to uncertainty in estimation. “
2. 2 Published accounting criteria still in force
The Company has not yet followed certain criteria, interpretations of existing criteria, and amendments that have been published but have an effective date after January 1, 2023. Many of those updates are not expected to have a significant effect on the Company and are therefore not discussed here.
The Company does not expect the adoption of the criteria indexed above to have a dramatic effect on monetary statements, unless set forth below.
These modifications apply to conditions under which there is a sale or contribution of assets between an investor and its related business or joint venture. Under the amendments, gains or losses resulting from the loss of a subsidiary that does not involve a business in a transaction with an associated business or a joint venture related to an associate are identified in the parent company’s profits or losses only to the extent of the independent investors’ interest in that associate or joint venture. Similarly, gains and losses resulting from the revaluation of an investment retained in a former subsidiary are identified in the profit or loss of the former parent company only to the extent of the interests of unrelated investors in the new associate or joint venture.
The effective date of these amendments has not yet been determined. The Company anticipates that such modifications could have an effect on its consolidated monetary statements in the long-term periods in which such transactions occur.
Amendments to IAS 1 Presentation of Financial Statements – Classification of Current and Non-Current Liabilities
These amendments, published in January 2020, only have an effect on the presentation of liabilities in the monetary position by clarifying that the classification of liabilities as existing or non-existent deserves to be based on the rights existing at the balance sheet date, regardless of the expectations related to the restructuring of the right-to-defer arrangement. In addition, the amendments explain that the rights exist if commitments are fulfilled by the end of the reporting period and describe the arrangement as the transfer of cash, equity instruments and other assets to the counterparty. or services.
2. ADOPTION OF NEW AND REVISED STANDARDS (CONTINUED)
The Companies expect that the application of such amendments is likely to have an effect on the consolidated monetary statements.
Amendments to IAS 1 Presentation of Financial Statements – Non-Current Agreed Liabilities
These amendments, published in October 2022, establish that only agreements that must be complied with until the balance sheet date will have the right to defer the settlement of a liability for at least twelve months after the balance sheet date and must be taken into account. in the valoración. la classification of liabilities as existing or non-existent. The right to defer the agreement does not apply if the agreements are to be fulfilled after the reporting period. However, if the right to defer the settlement of a liability is conditional on the performance of the agreements within twelve months of the reporting period, the data is worth to allow users to perceive the threat that the debts will be repayable within twelve months of the reporting period.
The Companies expect that the application of such amendments is likely to have an effect on the consolidated monetary statements.
3. SIGNIFICANT ACCOUNTING POLICIES
3. 1 Basis of accounting
The monetary statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) issued through the International Accounting Standards Board (“IASB”) and interpretations issued through the International Financial Reporting Interpretations Committee. (“IFRIC”).
3. 2 Going concern
The monetary statements have been prepared on the basis of ongoing fear, which contemplates the realisation of assets and the arrangement of liabilities in the course of business.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3. 3 Basis of consolidation
Control is explained as the force to direct a company’s monetary and operational policies in order to offload its activities. The amounts presented in the subsidiary’s consolidated monetary statements have been adjusted, where necessary, to conform to the accounting policies followed throughout the Company.
The gain or loss or any other aggregate loss of subsidiaries created, acquired, or sold during the year are identified from the effective date of acquisition or through the effective date of sale, as applicable. All intercompany transactions, balances, revenues, and expenses are eliminated at the time of consolidation. .
3. 4 Investments in joint ventures
The monetary effects of the Company’s investments in its partnership are included in the Company’s effects under the equity method. Under the equity method, the investment is recorded first at charge and the amount of use is higher or lower to recognize the Company’s percentage. of the comprehensive source of revenue or the overall loss of the joint venture after the date of acquisition. The Company’s profit or loss percentage is identified in the condensed interim period of operations.
3. 5 Functional and Reporting Currency – Foreign Currency Transactions
The Company’s functional and reporting currency is the Canadian dollar (“CAD”). The functional currency of Nalunaq A/S and Gardaq A/S is CAD. The functional currency of Nalunaq A/S and Gardaq A/S is composed of our minds by employing the currency of the main source of economic activity and employing the currency that is maximally representative of the economic effect of the underlying financings, transactions, occasions and conditions.
Foreign currency transactions are translated into the functional currency of the underlying entity at the exchange rates prevailing on the dates of such transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate of the functional currency in effect at the end of each reporting period. Foreign exchange gains and losses resulting from the conclusion of such transactions are identified in net income.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Mineral properties come with rights to mineral properties, paid for or acquired as part of a business combination or asset acquisition, as well as prices related to the initial search for mineral deposits with economic or economic potential. to download more data on existing mineral deposits.
All prices incurred prior to obtaining the legal rights to conduct exploration and evaluation activities of interest are charged to results as incurred.
Mineral rights are recorded at your acquisition charge or at your recoverable amount in the event of a devaluation caused by an impairment loss. Mineral rights and the features to obtain undivided interests in mineral rights are amortized only as those homes are put into advertising production. The sale of mining homes is used at similar attrition prices and any surplus or deficit is identified as a gain or loss in the Consolidated Statement of Comprehensive Income.
Exploration and evaluation expenses (“E Expenses”)
The technical feasibility and advertising feasibility of an exploration and appraisal asset are demonstrated by examining the facts and cases of the asset being valued. These facts and cases include, but are not limited to, the following:
The e
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3. 7 Capital goods
Intangible assets come with software with an explained shelf life. Assets are capitalized and amortized on a straight-line basis in the Consolidated Statement of Comprehensive Income. Intangible assets are tested for impairment if there is an indication that the intangible assets would have possibly been impaired.
Depreciation is calculated to amortize the charge on capital assets minus their residual over their estimated useful life on a straight-line basis and over the following periods across broad categories:
Amortization of capital assets, if similar to exploration activities, is charged to expenses in accordance with the Exploration and Evaluation Expense Policy. For those that are not similar to exploration and appraisal activities, depreciation and amortization expense is directly identified in the Consolidated Statement of Comprehensive Income. Capitalized Assets under structure under construction are not depreciated as they are not yet available for operation.
Residual values, depreciation strategies, and asset life are reviewed and adjusted as needed.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3. 7. 1 Nalunaq Mine Project
Management has decided that as of September 1, 2023, the assignment of Nalunaq is in the progression phase. As a result, all expenses similar to the restart of the Nalunaq mine and the relevant progression of the initial processing plant and surface infrastructure are capitalized in Construction in Progress within capital assets (see note 9). Capitalized expenses will be recorded at charge until the allocation of Nalunaq occurs commercially, is sold, discontinued, or decided by the control of having lost value. The mine and cell equipment, processing plant construction and Nalunaq mine are not yet available for use as planned by control as of December 31, 2023, therefore depreciation has not yet begun.
3. 8 Leases
Lease liability is revalued when certain events occur (e. g. , a replacement in the lease term, a replacement in long-term rents resulting from a replacement in an index or rate used for those payments). This revaluation is sometimes recorded as an adjustment to the asset’s right of use. Leases of “low-value” assets and short-term leases (12 months or less) are recorded on a straight-line basis as expenses in the Consolidated Statement of Comprehensive Income.
3. 9 Borrowing costs
Borrowing prices directly attributable to the acquisition, structure, or production of eligible assets are in addition to the charge on such assets. Eligible assets are assets that take a long time to be in a condition to be used for their intended use. Indebtedness prices, less any source of transitory investment income on such loans, which are directly attributable to the acquisition, structure, or production of an eligible asset, are included in the charge of that asset if they are highly likely to result in long-term economic benefits to the Corporation. And prices can be reliably measured. General-purpose loan prices are allocated to eligible assets by applying a capitalization rate to expenses similar to that asset. The capitalization rate shall be the weighted average of the loan prices applicable to all notable loans of the Company. of the period. Capitalization of debt prices ceases when substantially all mandatory activities are completed to prepare the eligible asset for its intended use or sale.
All other borrowing prices are identified as profit or loss at the time they are incurred.
3. 10 Impairment of non-financial assets
Mining homes and constant assets are subject to an impairment check if there are indications that the amount of wear and tear is possibly not recoverable. Assets under structure are subject to an annual impairment check as they are not yet amortized. Mining housing and capital assets are reviewed through the focus domain. If such an indication is present, the recoverable amount of the asset is estimated to determine whether impairment exists. When the asset does not generate cash flows independent of other assets, the Company estimates the amount recoverable from the property organization to which the asset belongs.
The recoverable amount of an asset is the greater of the fair price minus the disposal prices and the price in use. When assessing the price in use, the estimated long-term coin flows are reduced to provide the price, a pre-tax reduction rate that reflects existing market appreciations. of the temporary price of currencies and the specific dangers of assets for which estimates of long-term currency flows have not been adjusted.
If the recoverable amount of an asset or asset organization is estimated to be less than its usage amount, the usage amount is reduced to the recoverable amount. Impairment is identified without delay in the consolidated comprehensive income. In the event of deterioration, the amount of use will be higher until the revised estimate of the recoverable amount, but only to the extent that the recoverable amount does not exceed the amount of use that we would have decided if there had been no deterioration in the past. A reversal is recorded as a relief from the rate of deterioration of the period.
Provisions are taken when there is an implied legal or legal liability as a result of past occasions where an outflow of resources representing economic benefits is most likely required to extinguish the legal liability, and a reliable estimate of the amount of legal liability. Responsibility can be assumed. The Company is subject to legislation and regulations related to environmental matters, adding land reclamation and hazardous materials disposal and environmental monitoring. The Company would possibly be held liable for damages caused by the former owners and operators of its unproven mining. interests and in relation to interests in the hereafter held through the Company.
On initial recognition, the estimated net provision price of a provision is identified as a liability and the corresponding amount is added to the capitalized charge of the applicable non-financial asset or charged to consolidated comprehensive income if the asset has been written off. off. Discount rates that use a pre-tax rate that reflects the time cost of cash and the risk associated with the liability are used to calculate the net supply cost. The provision is evaluated at the end of each reporting period to take into account adjustments to the estimated amount or schedule of agreement of the obligation.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3. 12 Taxes
Current and prior tax assets and liabilities are measured by the amount they deserve to be recovered or paid to the tax authorities. The tax rates and tax laws used to calculate the amount are those that are substantially in effect as of the date of the consolidated statement. of monetary position.
Deferred taxes are recorded on a variable deferral basis due to the differences in time to the date of the Consolidated Statement of Financial Position between the tax bases of assets and liabilities and their amounts in use for monetary reporting purposes.
Deferred source of revenue tax liabilities are recorded for all taxable transient differences, except:
3. 13 Actions
Costs similar to the issuance of shares and warrants are in the year in which they are incurred and are recorded as an unequity deduction in the year in which the shares and warrants are issued.
Costs similar to percentages still issued are identified as deferred percentage issue prices. These prices are deferred until the issuance of the percentages to which they refer, at which point the prices will be charged to the percentage of capital involved or charged to the trades if the percentages are issued.
Proceeds from the Unit Offering are allocated to the Shares and Warrants issued in proportion to their price within the Unit’s pricing model, Black-Scholes.
3. 14 Interest income
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3. 15 Stock-Based Compensation
The Company’s employees and experts would possibly get a portion of their reimbursement in the form of stock-based transactions, in which workers or experts perform in exchange for equity tools (“Settled Stock Transactions”).
Prices for transactions settled with equity instruments with employees and other service providers are measured by reference to the fair price on the date they are allocated.
No expenditure is identified for awards that are ultimately not awarded, with the exception of awards whose award is conditional on a market condition, which are treated as an acquisition regardless of whether the market condition is met or not, provided that all other functions and/or service situations are satisfied.
When the terms of an equity-settled allocation are changed, the minimum spend identified is the expense as if the terms had not been changed. An additional amount is identified on the same basis as the original award amount for any modification that increases the overall fair price of the stock-based payment agreement, or is otherwise favorable to the worker as measured on the date of the change.
3. 16 Loss consistent with participation
The consistent percentage base loss is calculated by dividing the net loss by the weighted average number of non-unusual consistent with notable percentages and consistent with percentage. Diluted loss consistent with percentage reflects the prospective dilution of non-unusual percentage-consistent equivalents, such as notable options, limited by sets of percentages and warrants, in the weighted average number of notable non-unusual percentages for the year, if dilutive. In 2023 and 2022, all non-unusual equivalents of notable percentages were antidilutive.
3. 17 Financial Instruments
Financial assets and monetary liabilities are identified when the Company adheres to the contractual provisions of the monetary instrument.
Financial assets and liabilities are cleared and the net amount is disclosed in the consolidated monetary position when there is an unconditional and legally enforceable right to set off the identified amounts and there is an objective to settle on a net basis or realize the asset and settle the liability. simultaneously.
All monetary tools should be measured at a fair price at the time of initial recognition. The fair price is based on quoted market prices, unless the monetary tools are not traded in an active market. In this case, the fair price is decided by us using valuation techniques. such as the Black-Scholes Options Valuation Model or other valuation techniques.
Financial assets are derecognized when the contractual rights to obtain money flows from the monetary asset have expired, or when the monetary asset and all the really extensive dangers and rewards have been transferred. A monetary liability is derecognized when it is extinguished, extinguished, cancelled, or matured. .
Financial assets are first measured at a fair price. If the monetary asset is not subsequently recorded at a fair price at a loss, then the original measurement includes transaction prices directly attributable to the acquisition or origination of the asset. In the initial recognition, the Company classifies its monetary tools into the following categories depending on the purpose for which the tools were purchased.
Amortized Charge: Amortized Charged Monetary Assets are non-derivative monetary assets whose constant or determinable invoices consist solely of principal and interest bills held under a “hold-to-cash” business model. Amortized charged monetary assets are recorded first at the amount expected to be received, minus a haircut, where material, to reduce the monetary assets to fair value. Subsequently, monetary assets with amortized charges are measured at the effective interest rate minus a provision for expected losses. The Company’s cash, owed through a similar portion and the escrow account for environmental monitoring are classified in this category.
Any gain or loss resulting from derecognition is identified as profit or loss and is presented in other gains/losses as well as foreign exchange gains and losses. Impairment losses are presented on a separate line item in the Consolidated Statement of Comprehensive Income.
3. 17. 2 Financial liabilities and equity
A monetary liability is written off when it is extinguished, liquidated, terminated, cancelled, or matured.
Debt and equity tools are classified as monetary liabilities or equity according to contractual provisions and definitions of monetary liabilities and equity tools.
Financial liabilities measured at amortized charge Financial liabilities are first measured at fair price. Transaction prices directly attributable to the issuance of the monetary liability, other than monetary liabilities measured at fair price through profit or loss, are deducted from the fair price of the monetary liability on initial recognition. Transaction prices directly attributable to the issuance of monetary liabilities at fair price through profit or loss are identified without delay in profit or loss.
An equity tool is a contract that reflects a residual interest in an entity’s assets from its liabilities.
The terms of a convertible note are evaluated to determine whether it comprises a liability component and an equity component. These portions are classified separately as monetary liabilities, monetary assets, or equity tools. A conversion option that will be settled by exchanging a constant amount of money or other monetary asset for a constant number of equity tools of the parent company is an equity instrument.
The fair price of the liability component of the convertible note tool is the estimated market interest rates for similar non-convertible tools. This amount is recorded as a chargeable liability amortized according to the effective interest method until adulthood or the conversion date of the tool.
The price of the conversion option classified as equity is determined by subtracting the fair price from the monetary liability component of the overall composite instrument. The conversion option is then included in the equity and its price is not changed at a later date.
Embedded derivatives Embedded derivatives are part of hybrid contracts. Hybrid contracts involve a non-derivative host and an embedded derivative that have an effect on the combined tool in a similar way to a standalone derivative.
Derivatives incorporated in hybrid contracts where the non-derivative host is not a monetary asset (e. g. , a monetary liability) are accounted for as separate derivatives if they meet the definition of a derivative and their dangers and characteristics are not very similar to those of non-derivative main contracts. Embedded derivatives that are segregated from a main contract of monetary liability are measured at fair price. The residual price of the hybrid contract is then assigned to the main contract of monetary responsibility.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3. 17. 3 Impairment of monetary assets
The expected loss is the difference between the amortized charge of the monetary asset and the offer price of the expected long-term money flows, discounted using the instrument’s original effective interest rate. The amount of attrition on the asset is reduced through this amount directly or through the use of a provision account. Provisions for expected losses are adjusted up or down in the coming periods if the amount of expected loss increases or decreases.
3. 18 Segmented information
The Company operates in a business segment, the acquisition, exploration and evaluation of mineral properties. All of the Company’s activities are carried out in Greenland.
4. CRITICAL ACCOUNTING JUDGMENTS AND ASSUMPTIONS
TRIALS
4. 1 Depreciation of Mineral Properties and Capital Assets
Determining whether there are facts and cases that indicate a loss or reversal of impairment is a subjective procedure that involves judgment and a series of estimates and interpretations in many cases.
4. 1. 2 Depreciation of capital assets
4. CRITICAL ACCOUNTING JUDGMENTS AND ASSUMPTIONS (CONTINUED)
Where there is an indication of impairment or reversal of impairment, the recoverable amount of the individual asset should be estimated. If it is not conceivable to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit will need to determine what the asset belongs to. Identifying cash-generating assemblies requires a great deal of judgement on the control component. By testing the impairment of an individual asset or cash-generating unit and identifying a reversal of the impairment loss, the control estimates the recoverable amount. of the asset or cash-generating unit. This requires the control to make various assumptions about long-term occasions or circumstances. These assumptions and estimates are subject to supersedation if new data become available. The actual effects of impairment losses or reversals of impairment losses may simply differ in such a scenario and curtains replace the Company’s assets and earnings may occur in the coming period.
With regard to the annual verification of the deterioration of ongoing constructions, the control has decided that the replacement charge technique is the appropriate maximum for calculating the recoverable charge of individual assets under the CIP. The Company conducted the survey based research of the existing market values received from suppliers for each asset in the CIP category, as well as the valuation of the recoverable amount based on general adjustments in the machinery and appliance price index, as well as the values of commercial manufacturers from 2021 to 2023. As a result of this investigation, the replacement charge of the assets under the CIP category produced a recoverable amount that was at least 20% higher than the amount of use of the assets under the CIP category as of December 31, 2023.
4. 2 Determination of the Functional Currency
4. 3 Capitalization of financial costs
The Company makes judgments about the amount of borrowing prices that are attributable to the acquisition of an eligible asset.
4. 4 Technical Feasibility and Commercial Viability (“TFCV”)
Management uses meaningful judgment to determine when TFCV is demonstrable. Technical feasibility refers to the ability to construct and physically operate a mining task in a technically sound manner to produce a saleable mineral product, while viskill advertising refers to the ability to extract the ore. to generate a moderate return on investment. Key considerations used to determine whether TFCV has been achieved included building confidence regarding mineralization, effects and status of the examination, likelihood of obtaining key permits, lifetimes of other barriers that could have an effect on mining operations, and the ability to generate a return on investment, confidence in the prospects of the assignment through the Management and the Board of Directors.
4. CRITICAL ACCOUNTING JUDGMENTS AND ASSUMPTIONS (CONTINUED)
ESTIMATES AND ASSUMPTIONS
4. 5 Environmental Monitoring Costs
Provisions for environmental monitoring prices are based on long-term prices estimated based on data available at the balance sheet date. Determining those legal liabilities requires significant estimates and assumptions because of the many points that have effects on the amount in the end. payable. These items come with estimates of the scope and charge of remediation activities, legislative adjustments, known environmental impacts, the effectiveness of remediation and recovery measures, and adjustments in the rate of reduction. This uncertainty can lead to discrepancies between actual spending and provision. At the date of consolidation of the monetary position, environmental monitoring prices constitute the most productive estimate made by management of the resulting expenditure when the actual legal liability ends.
For the purpose of determining the fair market price of limited percentage unit allocations, a number of assumptions are required to input the measurement model. Determining those assumptions requires a significant estimation point and management’s judgment.
For percentage-settled allocations, we will need to make assumptions on the allocation date. These assumptions include the date of calculation of the award, the projection period, the percentage value at the time of the allocation, the value of the restructuring, the risk-free interest rate, dividends, percentage value volatility, and time frames. Uncertainty in the selection of assumptions would possibly result in differences between the actual cost of the limited percentage awards and their estimated fair cost based on the Monte Carlo simulation. At the date of the consolidated monetary position, the allocation of limited percentage sets and the cost of embedded derivatives constitute management’s most productive estimate of the fair cost of allocations on the measurement dates stipulated in the RAU allocation agreement.
4. 7 Built-in derivative
To calculate the fair market price of the embedded derivative, a number of assumptions must be taken into account in the measurement model. The determination of these assumptions requires a significant point of estimation and judgment from management.
Uncertainty in the selection of assumptions would possibly result in differences between the actual price of the embedded derivative and its estimated fair price based on the Black-Scholes pricing model.
5. PREPAYMENTS AND OTHER FEES
6. ENVIRONMENTAL MONITORING DEPOSIT ACCOUNT
On behalf of the licensee of Nalunaq, an escrow account was opened with the licensee as the account holder and the Government of Greenland as the beneficiary. Funds from the escrow account were provided to the Government of Greenland as collateral to cover environmental monitoring costs following the closure of the Nalunaq mine. This environmental monitoring program ended in 2020.
On June 10, 2022, the Company announced that it had signed a non-binding Memorandum of Understanding (MOU) with CAMA to identify a special purpose vehicle (the “SPV”) and identified a joint venture (the “JV”) for exploration. and development of its strategic mining assets for a combined contribution of $62. 0 million (£36. 7 million). Subject to the final terms of the joint venture, ACAM invested $30. 1 million (£18 million) in exchange for a 49% stake in the SPV. Amaroq owns 51%. Amaroq has provided its strategic non-precious minerals (i. e. non-gold) licences and will be required to make an in-kind contribution over a three-year period, valued at a total of £31. 4 million (£18. 7 million) in the form of on-site logistics and overhead pricing related to the use of its existing infrastructure in southern Greenland for the joint venture operations. The transfer of those licenses was approved through the Government of Greenland on April 13, 2023.
The attrition of strategic non-precious mineral licenses transferred to Gardaq A/S is $36,896 (Note 7).
7. INVESTING IN AN EQUIVALENCE ACCOUNTING POLICY (CONTINUED)
Following the signing of the Subscription and Shareholder Agreement (“SSHA”) on April 13, 2023, the Company ceased Gardaq on that date. As a result of the Company’s loss on the subsidiary:
The Company has decided that it will conduct joint dealings in Gardaq A/S, as decisions related to applicable activities require unanimous approval of shareholders. As of April 13, 2023, the Company’s investment has been accounted for as an equity investment in a joint venture. company. The equity approach consists of recording the initial investment at cost and subsequently adjusting the investment amount based on the percentage of the Company’s net source of income, other comprehensive source of income, and any other adjustments to the net assets of the joint venture. . , such as new investments or dividends. For the year ended December 31, 2023, the Company recorded a 51% portion of Gardaq’s net loss of $7,892,387.
7. INVESTING IN AN EQUIVALENCE ACCOUNTING POLICY (CONTINUED)
The following tables summarize Gardaq A/S monetary data as of December 31, 2023.
8. MINERAL PROPERTIES (CONTINUED)
8. 1 Nalunaq – Au
Nalunaq A/S holds gold mining license number 2003/05 on the Nalunaq property (the “Nalunaq Permit”) located in southwestern Greenland. The license expires in April 2033 with a conceivable extension of up to 20 years.
8. 1. 1 Collaboration Agreement and Project Timeline
In addition, on July 17, 2015, ARC, FBC Mining and AEX Gold Limited (formerly known as FBC Mining (Nalunaq) Limited) (a wholly-owned subsidiary of FBC Mining) signed the Nalunaq Project Schedule (“2015 Project Schedule”), which continued following the signing with Nalunaq A/S on March 31, 2017 of the 2016-2017 Nalunaq Project Schedule (“2016-2017 Project Schedule”) (collectively, the “Project Calendars”).
8. MINERAL PROPERTIES (CONTINUED)
Finally, the situations relating to a processing plant located in the Nalunaq consistent with the contract (“Processing Plant”) and the payment of a royalty were described in the 2015 allocation schedule and formalized in the Processing Plant and Royalties Agreement (“ Processing Plant Agreement and Royalties”). “) signed. on March 31, 2017 and the situations are as follows: a) AEX Gold Limited transfers the processing plant to Nalunaq A/S on the following terms:i) An initial acquisition value of US$1;ii) Deferred attention of US $1,999,999 (“Deferred Consideration”) on a pay-as-you-go basis until the Deferred Consideration is paid in full. If only the processing plant component is used, the deferred care payable will be reduced by an amount to be agreed across the components to reflect the cost of the processing plant component used. iii) Deferred care would likely be reduced to the extent that the processing plant or any component used requires repair, is not in good working order, or is not capable of forming the paints for which it was designed. Arrayiv) Nalunaq A/S may dispose of or otherwise deal with the Processing Plant or any component thereof at its own expense. If disposition proceeds are earned (defined as proceeds realized less disposal processing costs), such disposition proceeds will be paid to AEX Gold Limited and this amount will be considered deferred care. If any income remains after full payment of deferred care, the remaining income will possibly be retained through Nalunaq A/S. b) Nalunaq A/S will pay AEX Gold Limited a royalty of 1% on the income. Nalunaq A/S. net source of income generated in the Nalunaq license (total source of income less production, transportation and refining costs), provided that, for the recently completed maximum calendar year, the additional profit consistent with the ounce of gold exceeds 500 US dollars. over the life of the mine are capped at US$1,000,000.
8. 1. 2 Greenland Government Fee
8. 1. 3 Exploration commitments and development milestones
Following the filing of Nalunaq A/S expense statements for the 2017 and 2018 licenses, the MLSA approved the transition of Nalunaq A/S to the next era (Subperiod 4) by reinvesting the unspent amount.
The Government of Greenland demonstrated this through Annex No. March 5, 2020, which was signed through the Government of Greenland and entered into force on March thirteen, 2020, to extend the dates required to carry out the following tasks. Until December 31, 2022, the operator must prepare an Environmental Impact Statement, make a Social Impact Statement and sign an Impact and Benefit Agreement. The deadline for the start of operations is January 1, 2023. After these deadlines had passed, the Government of Greenland finalized Annex No. 6.
8. MINERAL PROPERTIES (CONTINUED)
On September 21, 2023 and October 13, 2023, the Company signed Schedule 7 to the Nalunaq license which modified some of the steps similar to the license, adding the preparation of an Environmental Impact Assessment (EIA) and a Social Impact Assessment (EIS) until June 30, 2024. The addendum entered into force on 6 November 2023, when it was signed by the Government of Greenland. Failure to comply with any of the situations set forth in the Nalunaq License Addendum could result in revocation through the MLSA of the Nalunaq License without notice.
8. 2 Tartoq-Au
8. 2. 1 Purchasing the Tartoq License
On July 6, 2016, Nalunaq A/S entered into a sale and acquisition agreement to acquire Nanoq Resources Ltd. Tartoq exploration licence number 2015/17 located in south-west Greenland, for a total of $7,221. The license first expired on December 31, 2024 with the right to a 5-year extension. The renewal for a period of five years was reflected in Addendum No. February 3, 2020, which was signed through Nalunaq A/S on February 13, 2020 and entered into force in March. On December 13, 2020, when it was signed through the Government of Greenland. In reaction to the COVID-19 pandemic, the Greenland government extended the license duration for all exploration permits by two years. Therefore, the license expires on December 31, 2026.
For the exploration permit, Nalunaq A/S’s legal liability for 2023 amounts to DKK 2,031,600 of exploration activities in 2023, which, in combination with the permit liability transferred to 2022 of DKK 742,143, will result in DKK 2,773,743 ($543,942 using the exchange rate of December 31, 2023). 2023) exploration legal liability in 2023 prior to approval of expenses incurred in 2023 to through MLSA. For the purpose of crediting expenses to the amounts specified in the Tartoq license, the actual expenses are multiplied by something between 1. 5 and 3, depending on the type of expenses incurred. If those legal responsibilities are not met, certain moves could be made by the licensee to the situation, adding to trim the license domain in proportion to the spending deficit or postponing exploration. Commitment to the next era is subject to MLSA approval. Nalunaq A/S will submit 2023 Tartoq exploration permit expense statements to MLSA by April 1, 2024.
8. 3 Vágar – A
8. 3. 1 Purchase of the Vagar License
Nalunaq A/S entered into a sale and acquisition agreement with NunaMinerals A/S, acting through its bankrupt servicer, on 6 February 2017 to obtain Vagar Exploration Licence Number 2006/10 (“Vagar Licence”) located in West Greenland, adjacent to the mineral exploration and mining pipeline, Vagar licence maps and reports, studies and reports, with an acquisition value of $9,465 (DKK 50,000). After obtaining approval from the government of Greenland on October 30, 2017, Nalunaq A/S signed the documents to finalize the license transfer, which came into effect when the government of Greenland signed the document on January 18, 2018. The license originally expired on December 31, 2021 with a possible 6-year extension. In reaction to the COVID-19 pandemic, the Greenland government extended the license period for all exploration permits to two years, so the license expired on December 31, 2023.
The company has applied for an additional three-year extension and permit waiver for a total domain of 197 km2 and is awaiting final government documentation.
8. 3. 2 Exploration commitments
For the exploration permit, Nalunaq A/S will conduct exploration activities worth DKK 16,353,000 in 2023. The carry-forward balance for 2022 was DKK 5,716,001, which will result in a statutory exploration liability of DKK 22,069,001 ($4,327,819 using the exchange rate of 31 December 2023). in 2023 prior to approval of 2023 expenditures incurred through MLSA. To credit expenses to the amounts specified in the Vagar license, actual expenses are multiplied by a value between 1. 5 and 3, depending on the type of expenses incurred. If those legal responsibilities are not met, the licensee may take certain steps to the situation, adding the license domain cut in proportion to the expense shortfall or deferring the exploration commitment to the next generation subject to MLSA approval. Nalunaq A/S will submit its 2023 Vagar Exploration Permit expense statements to the MLSA by April 1, 2024.
8. 4 Nuna Nutaaq – Au
The Company acquired the right to conduct exploration activities on approximately 244 km2 of land in an Itillersuaq domain near Narsaq in southern Greenland. The exploration rights were granted to the Company under a new separate exploration license 2019/113 Nuna Nutaaq. The license application was approved and all required documents were signed through the Company on September 13, 2019 and the license came into effect on September 26, 2019 when it was signed through the Government of Greenland. The license originally expired on December 31, 2023 with the right to a five-year extension. In reaction to the COVID-19 pandemic, the Greenland government extended the license term for all exploration permits by two years. The license expires on December 31, 2025.
8. 4. 2 Exploration Commitments
In 2023, Nalunaq A/S will conduct exploration activities worth DKK 2,637,920, obtained an exploration expenditure approval of DKK 3,832,527 for 2022 and advance allocations for 2022 of DKK 2,344,489, resulting in total credits of DKK 3,229,826 for 2023 ($633,382 credits using the exchange rate as of December 31, 2023), therefore, there is no legal liability to explore in 2023, which has been demonstrated through the MLSA. In order to prove expenses opposite to the amounts indicated in the Nuna Nutaaq permit, the actual expenses are multiplied. through an element between 1. 5 and 3, depending on the type of expenses incurred. If those legal responsibilities are not met, certain moves may be made by the licensee to the situation, adding the cut of the license domain in proportion to the expense shortfall or deferring the exploration commitment to the next generation theme until MLSA approval. Nalunaq A/S will submit to MLSA the expense statements for the Nuna Nutaaq exploration permit for the year 2023 through April 1, 2024.
8. MINERAL PROPERTIES (CONTINUED)
8. 5. 1 Purchase of the Anoritooq License
The Company acquired the right to conduct exploration activities on approximately 1,185 km2 of land in the Anoritooq and Kangerluluk areas in southern Greenland. The exploration rights were granted to the Company under a new separate exploration license 2020/36, named Anoritooq. The license application was approved and all required documents were signed through the Company on June 11, 2020 and the license became effective on June 24, 2020 when it was signed through the Government of Greenland. In October 2020, the Company received an amendment to the Anoritooq permit, extending the domain of the permit to 1,889 km2 and it came into effect on November 6, 2020 when it was signed by the Government of Greenland. The license initially expired on December 31, 2024 with a possible 5-year extension. In reaction to the COVID-19 pandemic, the Greenland government extended the license term for all exploration permits by two years. Therefore, the license expires on December 31, 2026.
8. 5. 2 Exploration commitments
In 2023, Nalunaq A/S will conduct exploration activities worth DKK 3,421,080, obtain a 2022 exploration expenditure approval of DKK 969,834 and advance 2022 allocations of DKK 738,610, resulting in a total of DKK 2,682,470 ($526,043 using the December 31 exchange rate). ). , 2023) exploration legal liability in 2023 prior to approval of 2023 expenditures through MLSA. For the purpose of crediting expenses to the amounts specified in the Anoritooq license, the actual expenses are multiplied by a thing between 1. 5 and 3, depending on the type of expense incurred. If those legal responsibilities are not met, the licensee may take certain steps to the situation, adding the cut of the license domain in proportion to the spending shortfall or deferring the exploration commitment to the next generation issue to MLSA approval. Nalunaq A/S will submit its 2023 Anoritooq Exploration Permit Expense Statements to the MLSA by April 1, 2024.
8. 6. 1 Purchase of the Siku License
The Company acquired the right to conduct exploration activities on approximately 251 km2 of land in a domain between the Nanoq and Jokum’s Shear projects on the east coast of southern Greenland. The exploration rights were granted to the Company under a new separate exploration license for 2022/08, called Siku. The license application was approved and all required documents were signed through the Company on May 10, 2022 and the license became effective on June 3, 2022 when signed through the Government of Greenland. The license expires on December 31, 2026 with an imaginable 5-year extension.
8. 6. 2 Exploration commitments
For the exploration permit, Nalunaq A/S will have to conduct exploration activities worth DKK 603,720 in 2023 and advance DKK 296,595 from 2022, resulting in a total bond balance of DKK 900,315 ($176,555 at the exchange rate of December 31, 2023). . For the purpose of crediting expenses to the amounts specified in the Siku license, the actual expenses are multiplied by a value between 1. 5 and 3, depending on the type of expense incurred. If these obligations are not met, certain moves could be taken. through the licensee to the situation, adding the reduction of the license domain in proportion to the expense shortfall or deferring the exploration commitment to the next era issue for MLSA approval. Nalunaq A/S will submit its 2023 Siku Exploration Permit expense statements to MLSA through April 1, 2024.
8. 7 Gender
On September 26, 2019, Nalunaq A/S was granted Exploration License Number 2019/146 covering eastern Greenland, in this context explained as the spaces south of 75ºN and east of 44ºW. It is valid for a five-year era until December 31, 2023. . Nalunaq A/S intends to reapply for an exploration license in East Greenland. Nalunaq A/S is not obligated to incur any exploration expenses with respect to this license domain in this era.
On October 28, 2022, Nalunaq A/S was granted an exploration license number 2022/77 covering western Greenland, in this context explained as the spaces south of 78ºN and west of 44ºW. It is valid for five years until December 31. 2027. Nalunaq A/S is not obligated to incur any exploration expenses with respect to this license domain in this era.
9. CAPITAL
9. Capital Goods (CONTINUED)
Amortization of capital assets similar to exploration and appraisal homes is recorded under exploration and appraisal expenses in the Consolidated Statement of Comprehensive Income under depreciation and amortization. Amortization of $635,773 ($721,072 – 2022) is accounted for as exploration and appraisal expenses in 2023.
As of December 31, 2023, the amount of $33,283,240 ($7,522,085 as of December 31, 2022) of ongoing structure is similar to earned or garage appliances and infrastructure that will be installed at the appropriate time. The apparatus and infrastructure come with procedural plant parts that are still available.
As of December 31, 2023, the Company had capital commitments of $56,681,735. These commitments come with the advancement of the Nalunaq project, the rehabilitation of the Nalunaq mine, the structure of a processing plant, the acquisition of cellular devices and the surface installation. infrastructure.
10. CONVERTIBLE NOTES
10. 1 Revolving Line of Credit
A $25 million (US$18. 5 million) revolving credit facility (“RCF”) provided through Landsbankinn hf. and Fossar Investment Bank, with a two-year maturity and a value of SOFR plus 950 basis points. Interest is capitalized and paid at the end of the term.
The credit facility is denominated in U. S. dollars and the SOFR interest rate is determined by reference to CME SOFR forward rates published through CME Group Inc. Landsbankinn hf. et the Fossar revolving credit line has (i) a payment commitment of 0. 40% per annum calculated on the amount of the undrawn credit line and (ii) an agreement payment of 2. 00% on the amount of the credit line, 1. 5% to be paid on or before the Closing Date and 0. 50% to be paid at most in the first direct debit. The line is not convertible into securities of the Company.
10. CONVERTIBLE BANKNOTES (CONTINUED)
10. 2 Convertible Securities
The Convertible Notes consist of notes for $30. 4 million (USD 22. 4 million) issued to ECAM LP (USD 16 million), JLE Proconsistent withty Ltd. ($4 million) and Livermore Partners LLC ($2. 4 million) with a four-year term and a constant rate. interest rate at 5%. The conversion value of $0. 90 per common percentage is the final value of Amaraq’s constant percentages in the Canadian market the day before the last day of debt financing.
The convertible notes are denominated in US dollars and will mature on September 30, 2027, 4 years after the final date of the convertible note offering. The principal amount of the Convertible Notes will be convertible, in whole or in part, at any time one month after issuance in percentages consistent with the Company (“Ordinary Shares”) at a conversion value of $0. 90 (£0. 52five) according to is not unusual consistent with the percentage. for a total of up to 33,812,401 according to usual percentages. The Company may pay the convertible notes and the accrued interest at any time, in cash, subject to giving a period of 30 days to the affected noteholders, said noteholders having the option to convert said convertible notes into common percentages in the moment of conversion. up to five days before the refund date. If the Company elects to repurchase some, but not all, of the notable Convertible Notes, the Company will repurchase a pro rata percentage of each Noteholder’s holding of Convertible Notes. The Company will pay the holders of the convertible notes a commitment payment in the aggregate amount of $5. 511,293 (US$4,484,032), which will be paid pro rata to each holder’s holding of convertible notes. The commitment payment is payable on the earlier of: (a) the date that falls 20 business days after all notable amounts under the Bank’s revolving credit facility have been repaid in full, but not earlier than the date which falls 24 months after the factor date of the notes; and (b) the date corresponding to 30 (thirty) months following the date of the Bond subscription contract, regardless of whether or not the Bonds have been exchanged on said date or have been amortized.
Convertible notes are hybrid monetary tools that incorporate derivatives that require separation. The principal debt portion (the “host”) of the tool is classified at amortized cost, while all conversion and redemption features (the “embedded derivatives”) are classified at fair value via profit. or loss (JVPL).
The original fair price of the convertible notes was recorded at $30. 4 million (US$22. 4 million) and the embedded derivative component was $19. 4 million (US$14. 3 million). unobservable data (note 22. 4). As of December 31, 2023, the Company knew the fair price of the embedded derivative related to the early conversion option at $24. 0 million. The replacement in the fair price of the embedded derivative for the era of September 1, 2023 to December 31, 2023 was identified in the source of income (loss) and the integral source of income. The original host’s liability component, before deducting transaction prices, was accounted for to constitute the remaining amount of $10. 9 million (US$8. 1 million), which is then measured on a buffered charge. The transaction prices incurred on the issuance of the convertible note amounted to $1,004,030, of which $362,502 was allocated and deducted from the host liability component, and $641,528 was allocated to the host liability component. derivative implied and charged to the net source of income.
10. CONVERTIBLE BANKNOTES (CONTINUED)
10. 3 Ease of Cost Overruns
The surplus credit facility is denominated in U. S. dollars with a two-year term and will accrue interest at CME Group Inc. ‘s SOFR term rates. and will have a margin of 9. 5% per annum. The cost overrun line has a standby payment of 2. 5% on the amount of the committed budget. The cost overrun line is convertible into company securities.
The excess credit will be secured through (i) bank account pledge agreements between the Company and Nalunaq A/S, (ii) pledges of percentages on all existing and long-term acquired percentages of Nalunaq A/S and Gardaq A/S held through the Company. Pursuant to the terms of the percentage pledge agreements, (iii) a product loan assignment agreement, (iv) a pledge agreement relating to the owner’s loan deeds, and (v) a license transfer agreement. The Company has not yet used this facility.
11. RENTAL RESPONSIBILITIES
Maturity Analysis:
11. 1 Right to Use the Asset
The Corporation has a lease for its office. In October 2020, the Company commenced the lease for a period of five years and five months, adding five months of free rent in this period. Monthly rent is $8,825 through March 2024 and $9,070 for the remainder of the lease. option to renew the lease for an additional five-year period with a monthly rent of $9,070 indexed annually to last year’s consumer price index for the Montreal region.
A right-of-use amount of $841,080 and an equivalent long-term lease liability were recorded as of October 1, 2020, with a differential borrowing ratio of 5% and assuming the renewal option was exercised. Amortization of the right of use Expenses are identified as general and administrative expenses in the Consolidated Statement of Comprehensive Income under depreciation and amortization. Amortization of $80,207 ($80,207 in 2022) accounted for as general and administrative expenses in 2023.
12. SHARE CAPITAL
The Company has the right to factor in an unlimited number of non-unusual voting shares and an unlimited number of preference shares issued in series, all of which have no par value.
12. 2 Nasdaq listing on the Icelandic market
Following approval by the Central Bank of Iceland (the “FSA”) and the satisfaction of all needs of the Nasdaq Main Market, the Company transferred all depository receipts from the Nasdaq First North Growth Market to the Nasdaq Main Market with the first trading day on September 21, 2023. The motherboard’s directory in Iceland does not include shares traded on AIM or TSX-V.
13. STOCK-BASED COMPENSATION
First, an incentive inventory option plan (the “Plan”) was approved in 2017 and renewed through shareholders on June 15, 2023. The plan is a “continuous” plan under which a maximum of 10% of inventories issued at that time of allocation are reserved for issuance under the plan to officers, directors, workers, and experts. The Board of Directors shall award inventory characteristics and the restructuring value of the characteristics shall not be less than the final value of the last trading day prior to the concession date. The options have a maximum term of ten years. Features granted under the Plan will be granted and exercisable at such time or times as the Board may determine, for features granted to experts offering investor relations activities to be granted in stages throughout an era. of 12 months with a maximum of one quarter. Functions conferred within a three-month period. The Company has no legal or implied liability to redeem or settle the cash features.
On January 17, 2022, the Company granted its officers, workers and former employees 4,100,000 inventory characteristics with a restructuring value of $0. 60 and an expiration date of January 17, 2027. Inventory characteristics grant one hundred percent on the date of grant. The characteristics were granted with a restructuring value equivalent to the final value of the inventories on the day before the concession. Total inventory-based reimbursement costs are $1,435,000 at an estimated fair cost of $0. 35 consistent with the option.
On April 20, 2022, the Company granted 73,333 inventory characteristics with a restructuring value of $0. 75 and an expiration date of April 20, 2027 to a senior executive. Inventory characteristics grant one hundred percent on the date of grant. granted with a restructuring value equivalent to the final value of the inventories on the day before the concession. Total inventory-based reimbursement costs are $32,267 at an estimated fair cost of $0. 44 consistent with the option. The fair cost of the features granted was estimated in the Black-Scholes Style with an expected dividend yield with no expected return, an expected volatility of 68. 9%, a risk-free interest rate of 2. 7%, and a five-year term. Expected lifetime and expected volatility were estimated by comparing comparable corporations with the Company.
On July 14, 2022, the Company granted one worker 39,062 inventory features with a restructuring value of $0. 64 and an expiration date of July 14, 2027. Inventory characteristics grant one hundred percent on the date of grant. The features were awarded at a repair value price equivalent to the final value of the inventories the day before the grant. Total inventory-based reimbursement costs are $14,844 at an estimated fair cost of $0. 38 consistent with the option. The fair cost of the features granted was estimated in Black-Scholes style with no expected dividend yield, expected volatility of 69%, a risk-free interest rate of 3. 1%, and a five-year term. Expected life and expected volatility were estimated by comparing comparable corporations to the Company.
On July 24, 2023, the Company granted a hiring incentive inventory option concession to a new senior Amaroq worker. The feature grant entitles the worker to earn up to 19,480, not unusual, consistent with percentages under the Company’s inventory option plan. Restructuring value of $0. 77 according to percentage and acquired on October 24, 2023. The option will expire if it is restructured five years after the grant date.
13. STOCK-BASED COMPENSATION (CONTINUED)
On December 20, 2023, the Company granted its workers 61,490 inventory characteristics with a restructuring value of $1. 09 and an expiration date of December 20, 2028. Inventory characteristics grant one hundred percent consistent with the grant date. The characteristics were awarded at a solution value equivalent to the final value of the inventories the day before the grant. Total inventory-based reimbursement costs are $36,894 at an estimated fair cost of $0. 60 consistent with the option.
The fair cost of each option granted was estimated at the time of grant using the Black-Scholes option pricing model. Black-Scholes is a valuation style used for the fair value or notional cost of a call or put option based on the following assumptions at the valuation date:
The evolution of the inventory is as follows:
Of the functions performed during the period ended December 31, 2023, 1,012,971 shares were retained to cover the value of the grant of stock options and similar taxes.
13. STOCK-BASED COMPENSATION (CONTINUED)
The notable and exercisable characteristics of the inventory as of December 31, 2023 are as follows:
Conditionally grant USR
13. 2. 1 Description
Conditional awards were awarded in 2022 providing participants with the opportunity to download limited percentage unit prizes under the Company’s limited percentage unit plan (“RSU Plan”), subject to percentage price generation over a four-year period.
The awards are designed to align the interests of the Company’s employees and shareholders, fostering the production of exceptional long-term returns. Participants get 10% of a pool explained through the overall pool created above a composite threshold. 10% per annum.
Restricted share unit awards granted under the IAU Plan as a result of compliance with the general shareholder return functionality conditions are subject to ongoing service and are awarded as follows:
The maximum duration of the scholarships is 4 years from the date of award.
13. STOCK-BASED COMPENSATION (CONTINUED)
The Company’s initial market capitalization is based on a constant percentage value of $0. 552. The cost created through the expansion of the percentage value and dividends paid on the valuation date will be calculated with reference to the average ending value of the 3 months ended on that date. .
The MSW plan was amended through a general meeting of shareholders on June 15, 2023. As a result of the amendment, the number of percentages that would likely be issued under the MSW plan to satisfy conditional and other percentage awards has been increased to 10%. from a constant capital of 177,098,740 percentages to 10% of the percentage capital at the time of grant, or 10% of 263,073,022 percentages minus the number of noteworthy characteristics on each calculation date. As a result, an additional rate is set based on the difference between The fair price of contingent awards before and after replacement will be identified over the lifetime. The incremental fair price was decided and included in the valuation in 12. 2. 2.
13. 2. 3 New Conditional Assignment of the MSW Plan
On October 13, 2023, Amaroq awarded an award (the “Assignment”) under the MSW Plan as detailed below. Attribution is a conditional right to obtain a price if the long-term performance objectives applicable to the award are met. Any price for which Players are eligible with respect to the prize to be allocated in the form of limited percentage sets (an “RSU”), and the RSUs entitle the player to obtain non-unusual percentages from the Corporation. Each RSU will be granted and governed in accordance with the Company’s Restricted Stock Unit Plan regulations.
13. STOCK-BASED COMPENSATION (CONTINUED)
The fair price of the award granted in December 2022 and amended in June 2023, in addition to the award granted on October 13, 2023, greater than $7,378,000 based on 90% of the pool to be assigned. An expenditure of $1,856,000 was recorded for the year ended December 31, 2023 (none for the year ended December 31, 2022).
The fair price received through the use of a Monte Carlo simulation style that calculates a fair price based on a giant number of randomly generated projections of the Company’s percentage price.
The expected volatility was determined from the daily volatility of the percentage value during an era prior to the allocation date with a duration proportional to the expected useful life. A dividend yield of 0 was used based on the dividend yield on the grant date.
14. CAPITAL MANAGEMENT
The Company’s objectives are to maintain the Company’s ability to continue its operations in order to continue its acquisition, exploration and evaluation activities and with a flexible capital design that optimizes capital pricing in the face of appropriate risk. The Company manages capital design and makes changes in light of changes in economic situations and the risk characteristics of the underlying assets. As the Company has no cash flows from operations or adjusts the design of capital, the Company would possibly attempt to factor new stocks, factor debt securities, earnings or dispose of assets or adjust the amount of money. In order to maximize ongoing progression efforts and continue operations, the Company does not pay dividends. The Company is not subject to externally imposed capital restrictions.
15. EMPLOYEE COMPENSATION
Wages
16. EXPLORATION AND EVALUATION EXPENSES
16. EXPLORATION AND APPRAISAL EXPENDITURES (CONTINUED)
Exploration and appraisal expenses for the twelve-month period ended December 31, 2023 are net of $1,353,993 of exploration and evaluation expenses incurred through Nalunaq A/S during the period June 9, 2022 through April 13, 2023 for the six strategic non-gold minerals. . licenses that were transferred from Nalunaq A/S to Gardaq A/S (Note 21. 1).
17. GENERAL AND ADMINISTRATIVE
18. FINANCIAL COSTS
The source of the income tax expense differs from the amount calculated by applying the combined Canadian and Greenland source tax rates applicable to the Company to the loss before source income taxes for the following reasons:
19. INCOME TAXES (CONTINUED)
The analysis of the Company’s deferred tax assets and liabilities as of December 31, 2023 and 2022 is as follows:
The Company recognizes deferred tax assets to the extent that it is most likely that sufficient taxable source of income will be earned in the carryforward era to utilize such net taxable assets over the long term.
As the Company holds a mining license, non-equity losses in Greenland have an expiration date.
20. NET LOSS PER SHARE
The calculation of the fundamental and diluted net loss consistent with the consistent percentage for the year ended December 31, 2023 was based on the net loss attributable to consistent percentage holders of $833,513 ($21,898,963 for the year ended December 31, 2022) and the weighted average number of non-unusual consistent with the outstanding percentages for the year ended December 31, 2023, 272,623,548 (191,575,781 for the year ended December 31, 2022). As a result of the net loss for the years ended December 31, 2023 and 2022, all potentially non-unusual dilutive percentages are considered antidilutive and diluted net loss consistent with the consistent percentage is equivalent to the fundamental net loss consistent with the consistent percentage for those consistent with the periods.
21. TRANSACTIONS WITH RELATED PARTIES AND REMUNERATION OF MANAGEMENT KEYS
As of December 31, 2023, Gardaq’s receivable balance is $3,521,938 (zero as of December 31, 2022). This receivable balance represents the existing balance of allocation control fees and exploration and appraisal expenses incurred through the Company for six strategic mining leases transferred from Nalunaq A/S to Gardaq A/S. Exploration and appraisal expenses incurred through the Company are transferred to Gardaq A/S from Nalunaq A/S in accordance with the respective terms of the SSHA (Note 16).
21. 2 Key Executive Compensation
The Company’s principal officers are the members of the Board of Directors, the President and Chief Executive Officer, the Chief Financial Officer, the Vice President of Exploration and the Corporate Secretary. The compensation of key executives is as follows:
21. RELATED-PARTY TRANSACTIONS AND REMUNERATION OF MANAGEMENT KEYS (CONTINUED)
The remuneration of the employee is as follows:
(a) Short-term benefits include salary, directors’ fees if applicable, annual bonus, and pension.
During 2023, certain directors acquired additional shares (net of retained shares) through the exercise of their options. During 2022, administrators participated in the November 3, 2022 fundraiser in the amount of $2,700,132. The participation of the administrators is as follows:
During 2024, a director of the Company participated in the fundraising on February 13, 2024 and thus acquired another 2,700,000 new non-unusual shares of the Company (note 23).
The Company is exposed to monetary hazards arising from its operations and investment activities. The Directorate manages monetary hazards. The Company does not engage in contracts for monetary instruments, nor does it aggregate derivative monetary instruments, for speculative purposes. The Company’s key currency risks and monetary policies are described below.
22. 1 Credit Risk
Credit threat is the threat that one party to a monetary tool will result in a monetary loss to the other party by failing to meet an obligation. The Environmental Monitoring Corporation’s money and escrow account are exposed to the threat of credit. The management believes that the threat of money credits and escrow accounts for environmental monitoring is low, as the counterparties are licensed banks from Canada and Greenland.
22. 2 Liquidity Risk
The following table summarizes the usage amounts and contractual maturities of monetary liabilities:
22. FINANCIAL INSTRUMENTS (CONTINUED)
22. 3 External risk
As of December 31, 2023 and 2022, a portion of the Company’s transactions are denominated in DKK, Euros, U. S. Dollars and British Pounds (GBP) to the extent those currencies are distinct from the functional currency of the applicable organization entities.
Based on exposures prior to December 31, 2023, and assuming all other variables remain constant, a 10% appreciation or depreciation of the Canadian dollar against the Danish krone, euro, U. S. dollar, and British pound of 10% would decrease/increase earnings. or a loss of $2,003,823.
Based on exposures prior to December 31, 2022, and assuming all other variables remain constant, a 10% appreciation or depreciation of the Canadian dollar against the Danish krone, euro, U. S. dollar, and British pound of 10% would decrease/increase earnings. or a loss of $1,798,162.
22. 4 Fair Value
Financial assets and liabilities recorded or presented at fair price are classified in the fair price hierarchy based on the nature of the knowledge used to determine the fair price. The grades of the fair price hierarchy are:
22. FINANCIAL INSTRUMENTS (CONTINUED)
The following table summarizes the wear and tear of the Company’s monetary instruments:
Due to the short-term maturities of cash, industry and other receivables, as well as accounts payable and accrued liabilities, the amount spent on such monetary tools is close to just the right amount on the respective balance sheet date.
The amount of use of the convertible notes tool is close to its fair price in adulthood and includes the embedded derivative related to the early conversion option and the host liability at amortized cost. The embedded derivatives valuation style uses old volatility as an estimate of the market’s expected returns. Volatilidad. La volatility is an unobservable metric and adjustments to the volatility estimate have an effect on the fair price of the implied derivative and earnings. The following table presents the sensitivity of the fair price of the embedded derivative to adjustments in the volatility estimate. until December 31, 2023:
23. SUBSEQUENT EVENTS
23. 1 Fundraising
On February 13, 2024, the Company announced the successful finishing touch of its oversubscribed fundraising, which resulted in the conditional offering of a total of 62,724,758 new common percentages to new and existing institutional investors at an offering value of 74 pence (C$1. 25 at the final exchange rate). The value of the placement represents a premium of 5. 7% over the final percentage value on February 9, 2024 on the AIM stock exchange. The fundraiser will consist of:
As a result of the subscription, net proceeds of approximately £44 million (C$75 million) were raised, exceeding the original target amount of £30 million. The percentages subscribed, after issuance, will be credited as fully paid and will be equivalent in all respects to the Company’s existing usual percentages. After the admission of the subscribed percentages, the overall issued percentage capital of Amaroq will consist of 326,455,446 usual percentages.
The fundraiser closed on February 23, 2024.
23. 1. 1 Related Party Transaction
Amaroq’s director, Sigurbjorn Throkelsson, participated in the Canadian underwriting by acquiring a total of 2,700,000 new common shares for gross proceeds of C$3. 4 million (£2. 0 million) through Klettar LP (of which he is the sole beneficiary).
23. SUBSEQUENT EVENTS (CONTINUED)
On February 23, 2024, in accordance with the Company’s RSU plan dated June 15, 2023, the Company assigned an allowance (the “Allowance”) to the Company’s directors and workers as set forth in the table below.
Conditional awards were issued to participants on December 30, 2022 and October 13, 2023. The functionality runs from January 1, 2022 to December 31, 2025 with valuation dates of December 31, 2023, December 31, 2024, and December 31, 2025.
The main points of the award are as follows: