Amaroq Minerals Ltd. birtir uppgjör fyrir þriðja ársfjórðung 2024 og kynnir nýjustu áfanga í rekstri félagsins

Reykjavík, Nov. 14, 2024 (GLOBE NEWSWIRE) -- (“Amaroq” or the “Corporation” or the “Company”)

Amaroq Minerals Ltd. birtir uppgjör fyrir þriðja ársfjórðung 2024 og kynnir nýjustu áfanga í rekstri félagsins

TORONTO, ONTARIO – 14. nóvember 2024 – Amaroq Minerals Ltd. (AIM, TSX-V, NASDAQ Iceland: AMRQ), birtir í dag uppgjör þriðja ársfjórðungs (Q3) 2024. Allar upphæðir í dollurum tákna kanadíska dollara, nema annað sé tekið fram. Uppgjörið fylgir hér með á ensku.

Fjarfundur fyrir greiningaraðila og fjárfesta verður haldinn á morgun, 15. nóvember 2024, kl. 08:30 GMT. Upplýsingar um fundinn má finna neðar í þessari tilkynningu.

Eldur Ólafsson, forstjóri Amaroq:

„Við erum nú við það að hefja vinnslu á gulli úr Nalunaq, sem er afar stór áfangi fyrir félagið og mun skila tekjuflæði samhliða því sem við vinnum okkur upp í fulla framleiðslu.

„Við náðum verulegum framförum í uppbyggingu í Nalunaq á þriðja ársfjórðungi. Við settum upp og tengdum flest af þeim mikilvægu tækjum og íhlutum sem þarf til að hefja framleiðslu í vinnslustöðinni. Við höfum einnig haldið áfram þróun námunnar innan Mountain Block og safnað saman bergi fyrir fyrstu gullframleiðslu, sem hefst á þessum ársfjórðungi. Rannsóknir og boranir í fjórðungnum hafa aukið skilning okkar enn frekar á gullæðinni með borunum á Target Block svæðinu og í gegnum 75-æðina. Við væntum þess að niðurstöður þessara rannsókna, sem og úr Mountain Block, liggi fyrir fljótlega. Við teljum að þessar niðurstöður, til viðbótar við niðurstöður úr rannsóknarborunum síðustu tveggja ára, muni leiða til uppfærðs auðlindamats (MRE4) fyrir Nalunaq snemma á næsta ári.

„Félagið stundaði viðamiklar rannsóknir á þriðja ársfjórðungi og er ég afar stoltur af því sem rannsóknarteymi okkar hefur áorkað á þessu ári. Auk Nalunaq boruðum við fyrstu tvær holurnar í Nanoq-gullleyfinu sem og Target North í Sava, starfræktum þrjá borpalla í Stendalen og tókst einnig að bora tvær tilraunaholur í hinni sögufrægu Josva koparnámu. Við reiknum með niðurstöðum úr öllum þessum verkefnum á næstu mánuðum. Þessi vinna hefur lagt traustan grunn að frekari rannsóknum á gulli, kopar og nikkel á næsta ári og stuðlar að því að við raungerum verðmæti eignasafns okkar á Grænlandi."

Q3 2024 Corporate Highlights

• Amaroq group liquidity of $26.0 million consisting of cash balances, undrawn revolving credit overrun facility less trade payables ($62.2 million as of June 30, 2024).
• Gold business working capital before convertible note liability and loan payable of $37.9 million that includes prepaid contractors on the Nalunaq project of $17.8 million as of September 30, 2024 ($50.5 million that includes prepaid contractors on the Nalunaq project of $19.6 million as of June 30, 2024)
• The Gardaq Joint Venture that comprises the Strategic Minerals business has available liquidity of $8.3 million as of September 30, 2024 ($13.5 million as of June 30, 2024).
• In July 2024, the Company agreed heads of terms, subject to final documentation, with Landsbankinn for US$35 million in three Revolving Credit Facilities, securing a substantial increase and extension to its current debt facilities. Final documentation is currently in progress.
• Post period on 4 October, Amaroq entered into an agreement with the holders of its US$22.4 million convertible notes to convert the notes’ outstanding balance into new common shares. That measure serves to simplify Amaroq’s capital structure, reduces cash interest costs and increases future financial flexibility.
• Amaroq continues to develop opportunities in Servicing and Hydro to enhance local procurement options and support the transition towards cleaner energy sources.

Q3 2024 Operational Highlights

• Permitting: The Company is working with stakeholders on the Impact Benefit Agreement (IBA), which it aims to have in place by the end of the year.
• Contracting and Procurement: Procurement of all key contract packages is 100% complete and all of the critical path items have been procured and have arrived on site already.
• Engineering: Process plant detail design and engineering is 98% complete with all packages issued to the market and manufactured.
• Construction: Plant pad earthworks and civil construction at Nalunaq is 100% complete. The plant building structural steel is complete and cladding is 98% complete. Mechanical installation of the crushing circuit is 68% complete and installation of the civil foundations for the retaining walls, stockpile reclaimer and stacker conveyor were completed in August 2024. The installation of the grinding and gold room section started in July 2024 and was completed post-period. The trackless mining machines and light vehicle workshop construction is complete and in operation. The grinding circuit structural and mechanical installations are complete and electrical installation is in progress. The reclaim feeder has been cleared for use. The thickener tank structure, mechanical and pipework is complete, and electrical installation is also complete. Cable tray installation is complete, and installation of power and control cabling has commenced and is 92% complete. A new wing was installed at the camp to accommodate up to 120 people on site.
• Mining: Amaroq continues to focus on optimising mine development in the Mountain Block. The ramp has been completed to 742 level and ore development continued on 732 level. Both MineArc refuge stations have been commissioned, and the leaky feeder communication system was installed from 300 to the 720 level. Construction of the underground main heating system is progressing at the 300 level portal, and preparations have been made for heating of the ramp. The exhaust raise fan for Target Block was commissioned in preparation for the development of an exploration drift for diamond drilling and resource expansion, and another portal is planned on 742 level to support further development in Mountain Block. The Company is looking to improve its development rates and increase availability of mining fleet with its contractor Thyssen. Amaroq is also reviewing adding further mining equipment to optimise operations going forward. Finally, the Company has started employing its own mining team personnel.
• Gold and Strategic Minerals Exploration: Post period, Amaroq announced the completion of the 2024 exploration programme, including over 8,600 metres of core drilling across the gold and strategic metals portfolio. Results for the programme are expected over the coming months.

Nalunaq Project KPIs

Metric	Q2 2024	Q3 2024	Change
Total hours worked	103,680 hours	129,516 hours	+25%
Daily average of people working on site	96 people	107 people	+12%
Ratio of Greenlandic personnel	51%	43%	-8%

Outlook

• Activities at Nalunaq remain on track to deliver first gold in Q4 2024.
• Exploration results from gold, copper and nickel exploration expected at various intervals in Q4 2024 and Q1 2025.
• Updated measured resource statement for Nalunaq Gold mine expected to be published in Q1 2025.
  
  
  
  

Exploration activities overview

Gold projects:

• Nalunaq
  • All additional 75 Vein sampling from historical core housed at Nalunaq has been completed. A total of 2,895 meters of core drilling has been completed across the Target Block Extension zone to the west of the historical mining areas.
  • In parallel to this, a programme of surface samples along the outcropping Main Vein and 75 Vein to the west was completed with mountaineering specialists.
  • A Mineral Resource Estimate update for Nalunaq has been initiated with a Qualified Person’s site visit conducted by Mining Plus.
  • The Company is now awaiting the assay results before conducting a detailed review of the Target Block Extension zone and conducting further planning to address its 2025 exploration priorities.
    
    
    
    
• Nanoq
  
  
  
  
  • A 130-meter scout drilling programme was completed at Nanoq across previous channel sampling results with core geologically assessed and sampled at Nalunaq. These cores will be geologically logged and sampled results will then be used to guide objectives for the 2025 season.

• Nalunaq Satellite Targets
  • Following the discovery of an outcropping vein above historical high grade float results, a small surface sampling programme was completed at Eagle’s Nest with mountaineering specialists. The Company is now awaiting the results of the surface sampling, which will be used to help direct further work programmes.
  • Amaroq continues to assess the viability of other surrounding projects to become potential satellite feeds to Nalunaq.
    
    
    
    

Strategic Minerals:

• Stendalen
  • A new surface geophysical programme was completed ahead of commencing the 2024 drilling programme.
  • A total of 4,733 meters of exploration drilling was completed at Stendalen with the aim of providing greater geological understanding to the mineralisation style and geometry. Demobilisation of equipment from Stendalen is underway to ensure operational readiness for 2025.
  • Assay and downhole geophysical results, once received, will be used in conjunction with the University of Leicester to assess the mineral system present and produce targeting models. Environmental samples will also be analysed to commence the environmental baseline data for the project.

• Copper Belt (Sava/North Sava, Kobberminebugt)
  • The geological field team has completed a programme of mapping and sampling across the copper belt area, assessing both potential porphyry and magmatic Cu-Ni targets.
  • The team has been supplemented by external support from copper subject matter expert.
  • Following this work, a 212-meter scout drilling programme was completed at Josva copper skarn target within the Kobberminebugt licence as well as 501 meters of scout drilling within the epithermal copper/gold target at Target North within the Sava licence.

• Nunarsuit
  • The Company is reviewing the geological maps and results received from prospecting across the Nunarsuit licence.

Details of conference call

A conference call for analysts and investors will be held tomorrow, 15 November, at 08:30am GMT BST, including a management presentation and Q&A session.

To join the meeting, please register at the below link:

Amaroq Financial Results

The following selected financial data is extracted from the Financial Statements for the six months ended June 30, 2024.

Financial Results

	Nine months ended Sep 30
	2024 $	2023 $
Exploration and evaluation expenses	(5,172,947)	(5,737,257)
Site development costs	-	-
General and administrative	(11,831,157)	(8,015,379)
Gain on loss of control of subsidiary	-	31,340,880
Share of 9-months loss of an equity-accounted joint arrangement	(6,698,550)	(5,021,231)
Unrealized gain on derivative liability	1,636,567	273,780
Net (loss) income and comprehensive (loss) income	(18,001,712)	13,425,594
Basic and diluted (loss) income per common share	(0.057)	0.05

Financial Position

	As at Sep 30	As at June 30
	2024 $	2024 $
Cash on hand	25,937,983	31,663,204
Total assets	199,102,439	177,950,773
Total current liabilities (before convertible notes liability and loan payable)	13,596,239	8,490,107
Total current liabilities (including convertible notes liability and loan payable)	76,516,905	41,932,965
Shareholders’ equity	121,963,411	135,365,745
Working capital - gold business (before convertible notes liability and loan payable)	37,937,316	50,734,743
Working capital - gold business (after convertible notes liability and loan payable)	(24,983,350)	17,291,885
Gold business liquidity (excluding $8.3 and $13.5M ring-fenced for strategic mineral exploration as of September 30, 2024 and June 30, 2024, respectively)	25,958,581	61,787,888

Enquiries:

Amaroq Minerals Ltd. 

Eldur Olafsson, Executive Director and CEO

 

Eddie Wyvill, Corporate Development

+44 (0)7713 126727

Panmure Liberum (UK) Limited (Nominated Adviser and Corporate Broker)

Scott Mathieson

Kieron Hodgson

+44 (0) 20 7886 2500

Canaccord Genuity Limited (Corporate Broker)

James Asensio

Harry Rees

Tel: +44 (0) 20 7523 8000

Camarco (Financial PR)

Billy Clegg

Elfie Kent

Fergus Young

+44 (0) 20 3757 4980 

For Company updates:

Follow @Amaroq_minerals on X (Formerly known as Twitter)

Follow Amaroq Minerals Ltd on LinkedIn

Further Information: 

About Amaroq Minerals 

Amaroq Minerals' principal business objectives are the identification, acquisition, exploration, and development of gold and strategic metal properties in South Greenland. The Company's principal asset is a 100% interest in the past producing Nalunaq Gold mine which is due to go into production towards the end of 2024. The Company has a portfolio of gold and strategic metal assets in Southern Greenland covering the two known gold belts in the region as well as advanced exploration projects at Stendalen and the Sava Copper Belt exploring for Strategic metals such as Copper, Nickel, Rare Earths and other minerals. Amaroq Minerals is continued under the Business Corporations Act (Ontario) and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

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.

Glossary

Ag	silver
Au	gold
Bt	Billion tonnes
Cu	copper
g	grams
g/t	grams per tonne
km	kilometers
Koz	thousand ounces
m	meters
Mo	molybdenum
MRE	Mineral Resource Estimate
MT	Magnetotelluric data
Nb	niobium
Ni	nickel
oz	ounces
REE	Rare Earth Elements
t	tonnes
Ti	Titanium
t/m3	tonne per cubic meter
U	uranium
USD/ozAu	US Dollar per ounce of gold
V	Vanadium
Zn	zinc

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.

Amaroq Minerals Ltd.

UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2024

The attached financial statements have been prepared by Management of Amaroq Minerals Ltd. and have not been reviewed by the auditor

		As at September 30,	As at December 31,
	Notes	2024	2023
		$	$
ASSETS
Current assets
Cash		25,937,983	21,014,633
Sales tax receivable		72,087	69,756
Prepaid expenses and others		17,812,986	18,681,568
Interest receivable		876,478	-
Inventory		6,834,021	680,358
Total current assets		51,533,555	40,446,315
Non-current assets
Deposit		177,944	27,944
Escrow account for environmental rehabilitation		6,872,073	598,939
Financial Asset - Related Party	3,13	5,762,187	3,521,938
Investment in equity accounted joint arrangement	3	16,794,261	23,492,811
Mineral properties	4	48,683	48,821
Right of use asset	7	652,190	574,856
Capital assets	5	117,261,546	38,241,559
Total non-current assets		147,568,884	66,506,868
TOTAL ASSETS		199,102,439	106,953,183
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities		13,479,402	6,273,979
Convertible notes	6	38,395,349	35,743,127
Loan payable	6.1	24,525,317	-
Lease liabilities – current portion	7	116,837	80,206
Total current liabilities		76,516,905	42,097,312
Non-current liabilities
Lease liabilities	7	622,123	577,234
Total non-current liabilities		622,123	577,234
Total liabilities		77,139,028	42,674,546
Equity
Capital stock	8	207,202,359	132,117,971
Contributed surplus		7,327,666	6,725,568
Accumulated other comprehensive loss		(36,772)	(36,772)
Deficit		(92,529,842)	(74,528,130)
Total equity		121,963,411	64,278,637
TOTAL LIABILITIES AND EQUITY		199,102,439	106,953,183
Subsequent events	16

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

		Three months ended September 30,		Nine months ended September 30,
	Notes	2024	2023	2024	2023
		$	$	$	$
Expenses
Exploration and evaluation expenses	10	(4,424,907)	(2,277,540)	(5,172,947)	(5,737,257)
Site development costs		-	1,825,564	-	-
General and administrative	11	(3,536,240)	(2,632,041)	(11,831,157)	(8,015,379)
Loss on disposal of capital assets	5	(149,917)	-	(149,917)	(37,791)
Foreign exchange gain (loss)		1,040,420	(83,882)	1,475,432	(58,707)
Operating loss		(7,070,644)	(3,167,899)	(15,678,589)	(13,849,134)
Other income (expenses)
Interest income		901,831	141,443	943,023	613,031
Gardaq management income and allocated cost		608,392	601,461	1,823,286	1,108,101
Gain on loss of control of subsidiary	3	-	-	-	31,340,880
Share of net loss of joint arrangement	3	(4,788,733)	(3,381,749)	(6,698,550)	(5,021,231)
Unrealized gain (loss) on derivative liability	6	(3,655,048)	273,780	1,636,567	273,780
Finance costs	12	(9,317)	(1,022,258)	(27,449)	(1,039,833)
Net income (loss) and comprehensive income (loss)		(14,013,519)	(6,555,222)	(18,001,712)	13,425,594
Weighted average number of common shares outstanding - basic		327,418,727	263,579,331	314,985,260	263,356,034
Weighted average number of common shares outstanding – diluted		327,418,727	306,335,274	314,985,260	306,111,977
Basic earnings (loss) per share	14	(0.043)	(0.02)	(0.057)	0.05
Diluted earnings (loss) per common share	14	(0.043)	(0.02)	(0.057)	0.04
Effect of dilution		-	-	-	0.01
Share options		7,261,353	9,126,875	7,261,353	9,126,875
Restricted shares		6,659,409	-	6,659,409	-

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

Amaroq Minerals Ltd.

Consolidated Statements of Changes in Equity

(Unaudited, in Canadian Dollars)

	Notes	Number of common shares outstanding	Capital Stock	Contributed surplus	Accumulated other comprehensive loss	Deficit	Total Equity
			$	$	$	$	$
Balance at January 1, 2023		263,073,022	131,708,387	5,250,865	(36,772)	(73,694,581)	63,227,899
Net income and comprehensive income		-	-	-	-	13,425,594	13,425,594
Options exercised, net		597,029	409,584	(433,600)	-	-	(24,016)
Stock-based compensation	9	-	-	1,353,042	-	-	1,353,042
Balance at September 30, 2023		263,670,051	132,117,971	6,170,307	(36,772)	(60,268,987)	77,982,519
Balance at January 1, 2024		263,670,051	132,117,971	6,725,568	(36,772)	(74,528,130)	64,278,637
Net loss and comprehensive loss		-	-	-	-	(18,001,712)	(18,001,712)
Shares issued under a fundraising	8	62,724,758	75,574,600	-	-	-	75,574,600
Shares issuance costs	8	-	(1,218,285)	-	-	-	(1,218,285)
Options exercised – net	9.1	1,023,918	728,073	(745,500)	-	-	(17,427)
Stock-based compensation	9	-	-	1,347,598	-	-	1,347,598
Balance at September 30, 2024		327,418,727	207,202,359	7,327,666	(36,772)	(92,529,842)	121,963,411

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

	Notes	Nine months ended September 30,
		2024	2023
		$	$
Operating activities
Net (loss) income for the period		(18,001,712)	13,425,594
Adjustments for:
Depreciation	5	603,135	525,518
Amortisation of ROU asset	7	83,704	59,991
Stock-based compensation	9	1,347,598	1,353,042
Gain on loss of control of subsidiary	3	-	(31,340,880)
Unrealized gain on derivative liability	6	(1,636,567)	(273,780)
Embedded derivate related transaction costs		-	641,526
Loss on disposal of capital assets		149,916	37,791
Share of net losses of joint arrangement	3	6,698,550	5,021,231
Gardaq management income and allocated cost	3,13	(1,823,286)	(1,108,101)
Interest income		(943,023)	(613,031)
Other expenses		(17,427)	-
Foreign exchange		(1,624,654)	(1,114,277)
Finance costs		27,449	-
		(15,136,317)	(13,385,376)
Changes in non-cash working capital items:
Sales tax receivable		(2,331)	30,178
Due from related party	3,13	(388,400)	(52,304)
Prepaid expenses and others		(5,154,320)	(5,808,291)
Accounts payable and accrued liabilities		7,203,774	1,179,419
		1,658,723	(4,650,998)
Cash flow used in operating activities		(13,477,594)	(18,036,374)
Investing activities
Transfer to escrow account for environmental rehabilitation		(6,044,556)	(165,946)
Construction in progress and acquisition of capital assets	5	(75,508,967)	(9,409,183)
Prepayment for acquisition of ROU asset		(5,825)	-
Deposit		(150,000)	-
Cash flow used in investing activities		(81,709,348)	(9,575,129)
Financing activities
Proceeds from issuance of shares	8	75,574,600	-
Proceeds from convertible notes, net of issue costs	6	-	29,427,152
Proceeds from loan, net of transaction cost	6	24,394,364	-
Shares issuance costs	8	(1,218,285)	-
Lease payments	7	(101,143)	(53,583)
Interest received		66,545	613,031
Cash flow from financing activities		98,716,081	29,986,600
Net change in cash before effects of exchange rate changes on cash during the period		3,529,139	2,375,097
Effects of exchange rate changes on cash		1,394,211	1,143,288
Net change in cash during the period		4,923,350	3,518,385
Cash, beginning of period		21,014,633	50,137,569
Cash, end of period		25,937,983	53,655,954
Supplemental cash flow information
Borrowing costs capitalised to capital assets	5	4,263,933	-
ROU assets acquired through lease	7	155,214	-
Shares issued as a result of options exercised - net	9.1	728,073	-

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

  1.    NATURE OF OPERATIONS, BASIS OF PRESENTATION

Amaroq Minerals Ltd. (the “Corporation”) was incorporated on February 22, 2017, under the Canada Business Corporations Act. As of June 19, 2024, the Corporation completed its continuance from the Canada Business Corporations Act into the Province of Ontario under the Business Corporations Act (Ontario). The Corporation’s head office is situated at 100 King Street West, Suite 3400, First Canadian Place, 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”). Since July 2020, the Corporation’s shares are also listed on the AIM market of the London Stock Exchange (“AIM”) and from November 1, 2022, on Nasdaq First North Growth Market Iceland which were transferred on September 21, 2023 on Nasdaq Main Market Iceland (“Nasdaq”) under the AMRQ ticker.

These unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2024 (“Financial Statements”) were approved by the Board of Directors on November 14, 2024.

1.1    Basis of presentation and consolidation

The Financial Statements include the accounts of the Corporation and those of its 100% owned subsidiary Nalunaq A/S, company incorporated under the Greenland Public Companies Act. The Financial Statements also include the Corporation’s 51% equity share of Gardaq A/S, a joint venture with GCAM LP (Note 3).

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 audited annual financial statements for the year ended December 31, 2023, 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, 2023.

  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, 2023.

3.        INVESTMENT IN AN ASSOCIATE OR JOINT VENTURE CORPORATION

	As at September 30, 2024	As at     December 31, 2023
	$	$
Balance at beginning of period	23,492,811	-
Original investment in Gardaq ApS	-	7,422
Transfer of non-gold strategic minerals licences at cost	-	36,896
Investment at conversion of Gardaq ApS to Gardaq A/S	-	55,344
Gain on FV recognition of equity accounted investment in joint venture	-	31,285,536
Share of joint venture’s net losses	(6,698,550)	(7,892,387)
Balance at end of period	16,794,261	23,492,811

Original investment in Gardaq ApS	7,422	7,422
Transfer of non-gold strategic minerals licences at cost	36,896	36,896
Investment at conversion of Gardaq ApS to Gardaq A/S	55,344	55,344
Gain on FV recognition of equity accounted investment in joint venture	31,285,536	31,285,536
Investment retained at fair value- 51% share	31,385,198	31,385,198
Share of joint venture’s cumulative net losses	(14,590,937)	(7,892,387)
Balance at end of period	16,794,261	23,492,811

The following tables summarize the unaudited financial information of Gardaq A/S.

	As at September 30, 2024	As at    December 31, 2023
	$	$
Cash and cash equivalent	8,325,045	18,377,850
Prepaid expenses and other	560,579	351,752
Total current assets	8,885,624	18,729,602
Mineral property	117,576	92,239
Total assets	9,003,200	18,821,841
Accounts payable and accrued liabilities	1,603,757	528,235
Financial liability - related party	5,762,187	3,521,938
Total liabilities	7,365,944	4,050,173
Capital stock	30,246,937	30,246,937
Deficit	(28,609,681)	(15,475,269)
Total equity	1,637,256	14,771,668
Total liabilities and equity	9,003,200	18,821,841

3.        INVESTMENT IN AN ASSOCIATE OR JOINT VENTURE CORPORATION (CONT’d)

	As at September 30, 2024	As at September 30, 2023
	$	$
Exploration and Evaluation expenses	12,144,276	8,565,658
Interest expense (income)	(5,985)	-
Foreign exchange loss (gain)	(858,925)	171,792
Operating loss	11,279,366	8,737,450
Other expenses	1,855,047	1,108,101
Net loss and comprehensive loss	13,134,413	9,845,551

3.1 Financial Asset – Related Party

Subject to a Subscription and Shareholder Agreement dated 13 April 2023, the Corporation undertakes to subscribe to two ordinary shares in Gardaq (the “Amaroq shares”) at a subscription price of GBP 5,000,000 no later than 10 business days after the third anniversary of the completion of the subscription agreement.

Amaroq’s subscription will be completed by the conversion of Gardaq’s related party balance into equity shares. Gardaq’s related party payable balance consists of overhead, management, general and administrative expenses payable to the Corporation. In the event that the related party payable balance is less than GBP 5,000,000, the Corporation shall, no later than 10 business days after the third anniversary of Completion:

(a)   subscribe to one Amaroq share by conversion of the amount payable to the Corporation,

(b)   subscribe to one Amaroq share at a subscription price equal to GBP 5,000,000 less the amount payable to the Corporation

In the event that the amount payable to the Corporation exceeds GBP 5,000,000, the Corporation shall subscribe to the Amaroq shares at a subscription price equal to GBP 5,000,000 by conversion of GBP 5,000,000 of the amount due from Gardaq. Gardaq shall not be liable to repay any of the balance payable to the Corporation that exceeds GBP 5,000,000 (equivalent to CAD 9,048,791 as at 30 September 2024). See note 13.1.

During the nine-month period ended 30 September 2024, the Corporation determined that the financial asset should be reclassified to the non-current asset category since the amount will be settled during April 2026. As a result, an amount of $5,762,187 has been reclassified to non-current assets as at 30 September 2024 ($3,521,938 reclassified as at 31 December 2023).

  4.    MINERAL PROPERTIES

	As at December 31, 2023	Transfer	As at September 30, 2024
	$	$	$
Nalunaq – Au	1	-	1
Tartoq – Au	18,431	-	18,431
Vagar – Au	11,103	-	11,103
Nuna Nutaaq – Au	6,076	-	6,076
Anoritooq – Au	6,389	-	6,389
Siku – Au	6,821	(138)	6,683
Total mineral properties	48,821	(138)	48,683

  4.   MINERAL PROPERTIES (CONT’d)

	As at December 31, 2022	Transfers	As at September 30, 2023
	$	$	$
Nalunaq - Au	1	-	1
Tartoq - Au	18,431	-	18,431
Vagar - Au	11,103	-	11,103
Nuna Nutaaq - Au	6,076	-	6,076
Anoritooq - Au	6,389	-	6,389
Siku - Au	6,821	-	6,821
Naalagaaffiup Portornga - Strategic Minerals	6,334	(6,334)	-
Saarloq - Strategic Minerals	7,348	(7,348)	-
Sava - Strategic Minerals	6,562	(6,562)	-
Kobberminebugt - Strategic Minerals	6,840	(6,840)	-
Stendalen - Strategic Minerals	4,837	(4,837)	-
North Sava - Strategic Minerals	4,837	(4,837)	-
Total mineral properties	85,579	(36,758)	48,821

  5.   CAPITAL ASSETS

	Field equipment and infrastructure	Vehicles and rolling stock	Equipment (including software)		Construction in progress		Total
	$	$	$		$		$
Nine months ended September 30, 2024
Opening net book value	1,537,379	3,312,118	108,822		33,283,240		38,241,559
Additions	-	1,941,750	138		77,831,150		79,773,038
Disposals	-	(149,916)	-		-		(149,916)
Depreciation	(148,780)	(407,563)	(46,792)		-		(603,135)
Closing net book value	1,388,599	4,696,389	62,168		111,114,390		117,261,546
	Field equipment and infrastructure	Vehicles and rolling stock		Equipment (including software)	Construction in progress	Total
	$	$		$	$	$
As at September 30, 2024
Cost	2,351,042	6,197,074		232,231	111,114,390	119,894,737
Accumulated depreciation	(962,443)	(1,500,685)		(170,063)	-	(2,633,191)
Closing net book value	1,388,599	4,696,389		62,168	111,114,390	117,261,546

  5.   CAPITAL ASSETS (CONT’d)

	Field equipment and infrastructure	Vehicles and rolling stock	Equipment (including software)	Construction In progress	Total
	$	$	$	$	$
December 31, 2023
Opening net book value	1,735,752	3,742,384	216,385	7,522,085	13,216,606
Additions	-	-	-	25,761,155	25,761,155
Disposals	-	-	(80,983)	-	(80,983)
Adjustment	-	-	43,054	-	43,054
Depreciation	(198,373)	(430,266)	(69,634)	-	(698,273)
Closing net book value	1,537,379	3,312,118	108,822	33,283,240	38,241,559
	Field equipment and infrastructure	Vehicles and rolling stock	Equipment (including software)	Construction In progress	Total
	$	$	$	$	$
As at December 31, 2023
Cost	2,351,041	4,466,971	232,231	33,283,240	40,333,483
Accumulated depreciation	(813,662)	(1,154,853)	(123,409)	-	(2,091,924)
Closing net book value	1,537,379	3,312,118	108,822	33,283,240	38,241,559

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 $556,632 ($478,519 for the nine months ended September 30, 2023) was expensed as exploration and evaluation expenses during the nine months ended September 30, 2024.

As at September 30, 2024, the Corporation had capital commitments, of $25,532,115. These commitments relate to the development of Nalunaq Project, rehabilitation of the Nalunaq mine, construction of processing plant, purchases of mobile equipment and establishment of surface infrastructure.

During the first nine months of 2024 the Corporation capitalised borrowing costs of $4,263,933 to construction in progress, which are included in additions.

  6.   CONVERTIBLE NOTES AND LOAN PAYABLE

CONVERTIBLE NOTES	Convertible notes loan	Embedded Derivatives at FVTPL	Total
	$	$	$
Balance as at December 31, 2023	11,763,053	23,980,074	35,743,127
Accretion of discount	2,910,769	-	2,910,769
Accrued interest	1,142,212	-	1,142,212
Fair value change	-	(1,636,567)	(1,636,567)
Foreign exchange loss	235,808	-	235,808
Balance as at September 30, 2024	16,051,842	22,343,507	38,395,349
Non-current portion	-	-	-
Current portion	16,051,842	22,343,507	38,395,349

6. CONVERTIBLE NOTES AND LOAN PAYABLE (CONT’d)

CONVERTIBLE NOTES	Convertible notes loan	Embedded Derivatives at FVTPL	Total
	$	$	$
Balance as at December 31, 2022	-	-	-
Gross proceeds from issue	30,431,180	-	30,431,180
Embedded derivative component	(19,443,663)	19,443,663	-
Transaction costs	(362,502)	-	(362,502)
Accretion of discount	949,062	-	949,062
Accrued interest	508,576	-	508,576
Fair value change	-	4,536,411	4,536,411
Foreign exchange gain	(319,600)	-	(319,600)
Balance as at December 31, 2023	11,763,053	23,980,074	35,743,127
Non-current portion	-	-	-
Current portion	11,763,053	23,980,074	35,743,127

LOAN PAYABLE	As at September 30, 2024	As at December 31, 2023
	$	$
Balance as at December 31, 2023	-	-
Gross proceeds from issue	25,087,636	-
Transaction costs	(693,272)	-
Accretion of discount	32,973	-
Accrued interest	177,979	-
Foreign exchange gain	(79,999)	-
Balance as at September 30, 2023	24,525,317	-
Non-current portion	-	-
Current portion	24,525,317	-

6.1 Revolving Credit Facility

A $25 million (US$18.5 million) Revolving Credit Facility (“RCF”) was entered into with Landsbankinn hf. and Fossar Investment Bank on September 1, 2023, with a two-year term expi