ESKAY MINING CORP. ESKAY MINING CORP.
CONDENSED INTERIM FINANCIAL STATEMENTS
THREE AND NINE MONTHS ENDED
NOVEMBER 30, 2022 AND 2021
(EXPRESSED IN CANADIAN DOLLARS)
(UNAUDITED)
Notice to Reader
The accompanying unaudited condensed interim financial statements of Eskay Mining Corp. (the "Company") have been prepared by and are the responsibility of management. The unaudited condensed interim financial statements have not been reviewed by the Company's auditors.
Eskay Mining Corp.
Condensed Interim Statements of Financial Position (Expressed in Canadian Dollars)
(Unaudited)
As at | As at | |||
November 30, | February 28, | |||
2022 | 2022 | |||
ASSETS | ||||
Current assets | $ | 3,827,462 | ||
Cash and cash equivalents | $ | 876,222 | ||
Amounts receivable (note 6) | 537,642 | 842,063 | ||
Prepaid expenses and other deposits (note 3) | 353,997 | 464,840 | ||
Total current assets | 4,719,101 | 2,183,125 | ||
Non-current assets | 94,303 | |||
Deposits (note 4) | 94,303 | |||
Investment in associate (note 11) | 5,645,337 | 6,091,409 | ||
Equipment (note 5) | 182,985 | 112,135 | ||
Total assets | $ | 10,641,726 | $ | 8,480,972 |
SHAREHOLDERS' EQUITY AND LIABILITIES | ||||
Current liabilities | $ | 519,771 | ||
Amounts payable and other liabilities (note 8) | $ | 454,349 | ||
Seabridge loan (note 10) | 2,752,073 | 2,470,802 | ||
Total current liabilities | 3,271,844 | 2,925,151 | ||
Non-current liabilities | 107,906 | |||
Provision for reclamation (note 7) | 66,310 | |||
Total liabilities | 3,379,750 | 2,991,461 | ||
Shareholders' equity | 111,790,974 | |||
Share capital (note 12) | 95,982,395 | |||
Reserves | 14,380,913 | 12,083,662 | ||
Accumulated deficit | (118,909,911) | (102,576,546) | ||
Total shareholders' equity | 7,261,976 | 5,489,511 | ||
Total shareholders' equity and liabilities | $ | 10,641,726 | $ | 8,480,972 |
Nature of operations and going concern (note 1)
Commitments and contingencies (note 18)
Approved on behalf of the Board of Directors: "Hugh M. (Mac) Balkam", Director
"J. Gordon McMehen", Director
The accompanying notes to the unaudited condensed interim financial statements are an integral part of these statements.
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Eskay Mining Corp.
Condensed Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian dollars)
(Unaudited)
Three Months | Nine Months | |||||||
Ended | Ended | |||||||
November 30, | November 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Operating expenses | $ | 3,827,601 | $ | 13,397,401 | ||||
Exploration and evaluation expenditures (note 4) | $ | 4,425,553 | $ | 13,080,304 | ||||
General and administrative (note 16) | 262,692 | 369,508 | 4,607,300 | 1,427,012 | ||||
Total operating expenses | (4,090,293) | (4,795,061) | (18,004,701) | (14,507,316) | ||||
Other items | 18,101 | 46,935 | ||||||
Interest income | 1,358 | 17,253 | ||||||
Amortization (note 5) | (7,970) | (3,988) | (23,700) | (11,882) | ||||
Accretion (note 10) | (93,757) | - | (281,271) | - | ||||
Flow-through share liability recovery | - | 1,242,266 | 1,902,223 | 3,857,983 | ||||
Fair value adjustment on investment (note 11) | - | (3,081,480) | - | (5,330,153) | ||||
Loss from investment in associate (note 11) | (506,749) | - | (634,302) | - | ||||
Gain on dilution of investment in associate (note 11) | 9,823 | - | 188,230 | - | ||||
Income tax recovery | 44,082 | - | 44,082 | - | ||||
Net loss and comprehensive loss for the period | $ | (4,626,763) | $ | (6,636,905) | $ | (16,762,504) | $ | (15,974,115) |
Net loss per share - Basic and Diluted (note 15) | $ | (0.03) | $ | (0.04) | $ | (0.10) | $ | (0.10) |
Weighted average number of common | ||||||||
shares outstanding - Basic and Diluted (note 15) | 183,492,123 | 162,891,251 | 175,457,535 | 162,342,673 |
The accompanying notes to the unaudited condensed interim financial statements are an integral part of these statements.
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Eskay Mining Corp.
Condensed Interim Statements of Cash Flows (Expressed in Canadian Dollars)
(Unaudited)
Nine Months | |||
Ended | |||
November 30, | |||
2022 | 2021 | ||
Operating activities | $ | (16,762,504) | |
Net loss for the period | $ (15,974,115) | ||
Adjustments for: | 3,425,349 | ||
Share-based payments (note 13) | 662,047 | ||
Amortization (note 5) | 23,700 | 11,882 | |
Accretion (note 7 and 10) | 322,867 | 1,257 | |
Flow-through share liability recovery | (1,902,223) | (3,857,983) | |
Loss from investment in associate (note 11) | 634,302 | - | |
Gain on dilution of investment in associate (note 11) | (188,230) | - | |
Fair value adjustment on investment (note 11) | - | 5,330,153 | |
Changes in non-cash working capital items: | 304,421 | ||
Amounts receivable | (539,472) | ||
Prepaid expenses and other deposits | 110,843 | 768,428 | |
Amounts payable and other liabilities | 65,422 | (541,655) | |
Amounts due to related parties | - | (86,640) | |
Net cash (used in) operating activities | (13,966,053) | (14,226,098) | |
Investing activity | (94,550) | ||
Purchase of equipment | (1,635) | ||
Net cash (used in) investing activities | (94,550) | (1,635) | |
Financing activities | 7,000,002 | ||
Proceeds from charity flow through (note 12) | - | ||
Share issue costs | (114,124) | - | |
Proceeds from exercise of stock options | 765,100 | 28,000 | |
Proceeds from exercise of warrants | 9,360,865 | 1,272,338 | |
Net cash provided by financing activities | 17,011,843 | 1,300,338 | |
Net change in cash and cash equivalents | 2,951,240 | (12,927,395) | |
Cash and cash equivalents, beginning of period | 876,222 | 14,473,006 | |
Cash and cash equivalents, end of period | $ | 3,827,462 | $ 1,545,611 |
Supplemental information | $ | - | |
Units issued for acquisition of Garibaldi Resources Corp. (note 12(b)(i)) | $ 10,782,001 |
The accompanying notes to the unaudited condensed interim financial statements are an integral part of these statements.
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Eskay Mining Corp.
Condensed Interim Statements of Changes in Shareholders' Equity (Expressed in Canadian Dollars)
(Unaudited)
Equity attributable to shareholders | |||||||
Share | Accumulated | ||||||
capital | Reserves | deficit | Total | ||||
Balance, February 28, 2021 | $ | 82,905,744 | $ | 11,413,593 | $ (83,685,477) | $ | 10,633,860 |
Units issued for investment (note 12(b)(i)) | 10,782,001 | - | - | 10,782,001 | |||
Exercise of stock options (note 12(b)(ii)) | 52,850 | (24,850) | - | 28,000 | |||
Exercise of warrants (note 12(b)(ii)) | 1,647,247 | (374,909) | - | 1,272,338 | |||
Share-based payments (note 13) | - | 662,047 | - | 662,047 | |||
Net loss for the period | - | - | (15,974,115) | (15,974,115) | |||
Balance, November 30, 2021 | $ | 95,387,842 | $ | 11,675,881 | $ (99,659,592) | $ | 7,404,131 |
Balance, February 28, 2022 | $ | 95,982,395 | $ | 12,083,662 | $(102,576,546) | $ | 5,489,511 |
Units issued for charity flow-through (note 12(b)(iv)) | 7,000,002 | - | - | 7,000,002 | |||
Share issue costs - cash | (114,124) | - | - | (114,124) | |||
Flow-through share premium (note 9) | (1,902,223) | - | - | (1,902,223) | |||
Exercise of stock options (note 12(b)(v)) | 1,464,059 | (698,959) | - | 765,100 | |||
Expiry of stock options | - | (429,139) | 429,139 | - | |||
Exercise of warrants (note 12(b)(vi)) | 9,360,865 | - | - | 9,360,865 | |||
Share-based payments (note 13) | - | 3,425,349 | - | 3,425,349 | |||
Net loss for the period | - | - | (16,762,504) | (16,762,504) | |||
Balance, November 30, 2022 | $111,790,974 | $ | 14,380,913 | $ (118,909,911) | $ | 7,261,976 |
The accompanying notes to the unaudited condensed interim financial statements are an integral part of these statements.
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Eskay Mining Corporation published this content on 02 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 June 2023 14:32:09 UTC.
