2024 Q3 Form 10-Q Financial Statement

#000149315224033164 Filed on August 19, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 Q2 2023 Q4
Revenue $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $2.780M $6.359M
YoY Change 13.15% 83.95%
% of Gross Profit
Research & Development $5.548M $29.87K
YoY Change 16391.56% -56.94%
% of Gross Profit
Depreciation & Amortization 354.6K cads 369.7K cads $78.78K
YoY Change 91.84% 740.17% -17.65%
% of Gross Profit
Operating Expenses 11.24M cads 9.044M cads $3.306M
YoY Change 358.43% 231.17% -17.58%
Operating Profit
YoY Change
Interest Expense 23.95K cads 21.16K cads -$618.7K
YoY Change -102.3% -103.77% 97.51%
% of Operating Profit
Other Income/Expense, Net -$182.0K
YoY Change
Pretax Income -$9.793M -$4.673M
YoY Change 197.48% -111.16%
Income Tax -$524.5K
% Of Pretax Income
Net Earnings -12.00M cads -9.793M cads -$4.149M
YoY Change 243.82% 197.48% -109.91%
Net Earnings / Revenue
Basic Earnings Per Share $0.06 $0.06
Diluted Earnings Per Share $0.06 $0.06 -$0.03
COMMON SHARES
Basic Shares Outstanding 185.7M shares 185.7M
Diluted Shares Outstanding 185.7M shares 155.0M shares

Balance Sheet

Concept 2024 Q3 2024 Q2 2023 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $28.08M $19.25M
YoY Change 29.96% 272.76%
Cash & Equivalents 17.36M cads 28.08M cads $19.25M
Short-Term Investments
Other Short-Term Assets $628.6K $900.3K
YoY Change 29.3% 91.26%
Inventory $1.204M $212.1K
Prepaid Expenses 1.286M cads 628.6K cads $900.3K
Receivables
Other Receivables 826.5K cads 939.3K cads $532.8K
Total Short-Term Assets 20.67M cads 30.85M cads $20.68M
YoY Change 84.02% 34.52% 221.18%
LONG-TERM ASSETS
Property, Plant & Equipment 7.981M cads $55.69M
YoY Change -81.31% 58.13%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets 16.62M cads 16.68M cads $55.69M
YoY Change -67.08% -60.94% 58.13%
TOTAL ASSETS
Total Short-Term Assets 20.67M cads 30.85M cads $20.68M
Total Long-Term Assets 16.62M cads 16.68M cads $55.69M
Total Assets 37.29M cads 47.53M cads $76.37M
YoY Change -39.58% -27.59% 83.33%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable 3.596M cads 2.804M cads $2.383M
YoY Change 78.48% -8.32% -34.89%
Accrued Expenses 1.284M cads 1.300M cads $1.803M
YoY Change 46.44% 451.24% 460.06%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $1.307M $1.611M
YoY Change 2.89% 17.97%
Total Short-Term Liabilities 5.580M cads 5.580M cads $5.891M
YoY Change 10.7% 19.62% -52.73%
LONG-TERM LIABILITIES
Long-Term Debt $18.64M $18.30M
YoY Change 31.86% 1240.01%
Other Long-Term Liabilities $4.649M $1.395M
YoY Change 25.78% 117.72%
Total Long-Term Liabilities 23.99M cads 23.29M cads $19.70M
YoY Change 40.12% 30.6% 881.68%
TOTAL LIABILITIES
Total Short-Term Liabilities 5.580M cads 5.580M cads $5.891M
Total Long-Term Liabilities 23.99M cads 23.29M cads $19.70M
Total Liabilities 29.57M cads 28.87M cads $25.59M
YoY Change 33.43% 28.32% 76.84%
SHAREHOLDERS EQUITY
Retained Earnings -135.7M cads -123.7M cads -$104.6M
YoY Change 44.85%
Common Stock 0.000 cads 0.000 cads $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity 7.719M cads 18.67M cads $50.78M
YoY Change
Total Liabilities & Shareholders Equity 37.29M cads 47.53M cads $76.37M
YoY Change -39.58% -27.59% 83.33%

Cashflow Statement

Concept 2024 Q3 2024 Q2 2023 Q4
OPERATING ACTIVITIES
Net Income -12.00M cads -9.793M cads -$4.149M
YoY Change 243.82% 197.48% -109.91%
Depreciation, Depletion And Amortization 354.6K cads 369.7K cads $78.78K
YoY Change 91.84% 740.17% -17.65%
Cash From Operating Activities -$15.41M -$624.0K
YoY Change 373.88% 34.42%
INVESTING ACTIVITIES
Capital Expenditures -$6.110M $6.849M
YoY Change -242.65% 3.9%
Acquisitions
YoY Change
Other Investing Activities $71.27K
YoY Change
Cash From Investing Activities $6.110M -$6.778M
YoY Change -242.65% 2.81%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $16.14M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 27.66M 18.08M
YoY Change 13.64% 127.78%
NET CHANGE
Cash From Operating Activities -15.41M -624.0K
Cash From Investing Activities 6.110M -6.778M
Cash From Financing Activities 27.66M 18.08M
Net Change In Cash 18.36M 10.68M
YoY Change 9.25% 1113.64%
FREE CASH FLOW
Cash From Operating Activities -$15.41M -$624.0K
Capital Expenditures -$6.110M $6.849M
Free Cash Flow -$9.300M -$7.474M
YoY Change 23.43% 5.9%

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<p id="xdx_804_eus-gaap--NatureOfOperations_zJI9lcpGkrR" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span><span id="xdx_82E_z7JN4vHWNay2">NATURE OF OPERATIONS AND GOING CONCERN</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Premium Nickel Resources Ltd. (TSXV: PNRL) (the “<b>Company</b>” or “<b>PNRL</b>”) was founded upon the closing of a reverse takeover transaction (the “<b>RTO</b>”) whereby Premium Nickel Resources Corporation (“<b>PNRC</b>”) and 1000178269 Ontario Inc. a wholly-owned subsidiary of North American Nickel Inc. (“<b>NAN</b>”), amalgamated by way of a triangular amalgamation under the <i>Business Corporations Act</i> (Ontario) (the “<b>OBCA</b>”) on August 3, 2022. The common shares of PNRL (“<b>Common Shares</b>”) are listed and posted for trading on the TSX Venture Exchange (the “<b>TSXV</b>”) under the symbol “PNRL”.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior to the RTO, PNRC was a private company existing under the OBCA. PNRC was incorporated to evaluate, acquire, improve and reopen, assuming economic feasibility, a combination of certain assets of BCL Limited (“<b>BCL</b>”) and Tati Nickel Mining Company (“<b>TNMC</b>”) that were in liquidation in Botswana.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In connection with the RTO, the Company was continued under the OBCA and changed its name from “North American Nickel Inc.” to “Premium Nickel Resources Ltd.”</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Currently, the Company’s principal business activity is the exploration and evaluation of mineral properties in Botswana through its wholly-owned subsidiaries.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following corporate structure chart sets out details of the direct and indirect ownership of the principal subsidiaries of the Company:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><img alt="" src="form10-q_003.jpg" style="width: 800px"/></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">Notes</span>:</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Premium Nickel Group Proprietary Limited owns the Selkirk Assets (as defined below).</span></td></tr> <tr style="vertical-align: top"> <td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif"> </span></td></tr> <tr style="vertical-align: top"> <td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Premium Nickel Resources Proprietary Limited owns the Selebi Assets (as defined below).</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><img alt="" src="form10-q_002.jpg"/></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to the Unaudited Condensed Interim Consolidated Financial Statements </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and six months ended June 30, 2024</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(Expressed in Canadian dollars)</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s head and registered office is located at One First Canadian Place, 100 King Street West, Suite 3400, Toronto, Ontario, Canada M5X 1A4.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The principal assets of the Company are the Selebi and Selebi North nickel-copper-cobalt (“<b>Ni-Cu-Co</b>”) mines (the “<b>Selebi Mines</b>”) in Botswana and related infrastructure (together, the “<b>Selebi Assets</b>”), as well as the nickel, copper, cobalt, platinum-group elements (“<b>Ni-Cu-Co-PGE</b>”) Selkirk mine (the “<b>Selkirk Mine</b>”) in Botswana, together with associated infrastructure and four surrounding prospecting licenses (collectively, the “<b>Selkirk Assets</b>”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Going Concern</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company, being in the exploration stage, is subject to risks and challenges similar to companies in a comparable stage of exploration and development. These risks include the challenges of securing adequate capital for exploration and advancement of the Company’s material projects, operational risks inherent in the mining industry, and global economic and metal price volatility, and there is no assurance management will be successful in its endeavors. As at June 30, 2024, the Company had no source of operating cash flows, nor any credit line currently in place. The Company incurred a net loss of $<span id="xdx_90C_eus-gaap--NetIncomeLoss_iN_di_c20240101__20240630_z20rBAxvKw6" title="Net loss">19,140,372</span> for the six months ended June 30, 2024. The Company’s committed cash obligations and expected level of expenses will vary depending on its operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These unaudited condensed interim consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. The ability of the Company to continue operations as a going concern is ultimately dependent upon achieving profitable operations and its ability to obtain adequate financing. To date the Company has not generated profitable operations from its resource activities and will need to invest additional funds in carrying out its planned evaluation, development and operational activities. It is not possible to predict whether financing efforts will be successful or if the Company will attain a profitable level of operations. These material uncertainties cast substantial doubt about the Company’s ability to continue as a going concern. These condensed interim consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities and the reported expenses and comprehensive loss that might be necessary should the Company be unable to continue as a going concern. These adjustments could be material.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The properties in which the Company currently has an interest are in pre-revenue stage. As such, the Company is dependent on external financing to fund its activities. In order to carry out the planned development and cover administrative costs, the Company will use its existing working capital and raise additional amounts as needed. Although the Company has been successful in its past fundraising activities, there is no assurance as to the success of future fundraising efforts or as to the sufficiency of funds raised in the future. The Company will continue to assess new properties and seek to acquire interests in additional properties if there is sufficient geologic or economic potential and if adequate financial resources are available to do so. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 22.4pt; text-align: justify; text-indent: -21pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p id="xdx_846_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_zHuPLgTzeYHf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span><span id="xdx_82A_zXEX18C9HcBk">BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES</span></span> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p id="xdx_84D_ecustom--StatementOfCompliancePolicyTextBlock_z2opJbe6Xy2a" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(a)</i></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span><span id="xdx_86B_zNO0pdUL30A6">Statement of Compliance</span></span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These unaudited condensed interim consolidated financial statements were prepared in accordance with US GAAP for interim financial information and in accordance with the instructions in Article 10 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (“<b>SEC</b>”) for financial information. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain information or footnote disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed interim consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><img alt="" src="form10-q_002.jpg"/></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to the Unaudited Condensed Interim Consolidated Financial Statements </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and six months ended June 30, 2024</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(Expressed in Canadian dollars)</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2023. The interim period results do not necessary indicate the results that may be expected for any other interim period or for the full fiscal year.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_z1cYatMvWwd3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(b)</i></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span><span id="xdx_86C_zfjgaYHb0Nxd">Basis of preparation</span></span> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These unaudited condensed interim consolidated financial statements have been prepared on a going concern basis under the historical cost convention, modified by the revaluation of any financial assets and financial liabilities where applicable. The preparation of consolidated financial statements in conformity with US GAAP requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Company’s accounting policies.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The significant accounting policies used in the preparation of these unaudited condensed interim consolidated financial statements are consistent with those used in the preparation of the audited annual consolidated financial statements for the year ended December 31, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating segments are reported in a manner consistent with the internal reporting used for the audited annual consolidated financial statements. The Company determined that it has <span id="xdx_901_eus-gaap--NumberOfReportableSegments_dc_uInteger_c20240101__20240630_ziolAV3ODYJh" title="Number of reportable segments">one</span> reportable operating segment being that of the acquisition, exploration and evaluation of mineral properties in <span id="xdx_907_eus-gaap--NumberOfOperatingSegments_dc_uInteger_c20240101__20240630_zngtLhI0eI08" title="Number of operating segments">three</span> geographic segments, which are Canada, Barbados and Botswana (Note 15).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84C_eus-gaap--ConsolidationPolicyTextBlock_ziTWNxqGuS8h" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(c)</i></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span><span id="xdx_861_zRZrQgvlyH78">Basis of consolidation</span></span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These unaudited condensed interim consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries as summarized in the table below. All intercompany transactions, balances, income and expenses are eliminated upon consolidation.</span></p> <p id="xdx_891_eus-gaap--ConsolidationLessThanWhollyOwnedSubsidiaryParentOwnershipInterestEffectsOfChangesNetTextBlock_zR4yBkZTnYH8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B7_zpi7QmOWTJ6g" style="display: none">SCHEDULE OF ITS WHOLLY-OWNED SUBSIDIARIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif">Name of Entity</span></td><td style="text-align: center; padding-bottom: 1.5pt; vertical-align: bottom"><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif">Place of <br/> Incorporation</span></td><td style="text-align: center; padding-bottom: 1.5pt; vertical-align: bottom"><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif">Percentage Ownership</span></td><td style="text-align: center; padding-bottom: 1.5pt; vertical-align: bottom"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="text-align: center; padding-bottom: 1.5pt; vertical-align: bottom"><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif">Functional <br/> Currency</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif">Premium Nickel Resources Ltd.</span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_903_ecustom--EntityPlaceOfIncorporation_c20240101__20240630__srt--OwnershipAxis__custom--PremiumNickelResourcesLtdMember_zLNO7vyJndKc" title="Place of Incorporation">Ontario, Canada</span></span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif">CAD</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 36%; text-align: left"><span style="font-family: Times New Roman, Times, Serif">NAN Exploration Inc.</span></td><td style="width: 2%"><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="width: 20%; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_90D_ecustom--EntityPlaceOfIncorporation_c20240101__20240630__srt--OwnershipAxis__custom--NANExplorationIncMember_zK2mLdlSnWSd" title="Place of Incorporation">Ontario, Canada</span></span></td><td style="width: 2%"><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="width: 16%; text-align: right"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_902_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20240630__srt--OwnershipAxis__custom--NANExplorationIncMember_z8keAEk39Uok" title="Percentage Ownership">100</span></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="width: 2%"><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="width: 20%; text-align: center"><span style="font-family: Times New Roman, Times, Serif">CAD</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif">PNR Amalco Ltd.</span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_900_ecustom--EntityPlaceOfIncorporation_c20240101__20240630__srt--OwnershipAxis__custom--PNRAmalcoLtdMember_zWuDDl3g52Nb" title="Place of Incorporation">Ontario, Canada</span></span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_90B_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20240630__srt--OwnershipAxis__custom--PNRAmalcoLtdMember_zQpg0pSrun38" title="Percentage Ownership">100</span></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif">CAD</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif">Premium Nickel Resources International Ltd.</span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_905_ecustom--EntityPlaceOfIncorporation_c20240101__20240630__srt--OwnershipAxis__custom--PremiumNickelResourcesInternationalLtdMember_zfNSCGsVWE33" title="Place of Incorporation">Barbados</span></span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_90C_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20240630__srt--OwnershipAxis__custom--PremiumNickelResourcesInternationalLtdMember_zSQUxpWr16t2" title="Percentage Ownership">100</span></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif">USD</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif">PNR Selkirk Group (Barbados) Limited</span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_902_ecustom--EntityPlaceOfIncorporation_c20240101__20240630__srt--OwnershipAxis__custom--PNRSelkirkGroupBarbadosLimitedMember_z6qVgOWoZcr3" title="Place of Incorporation">Barbados</span></span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20240630__srt--OwnershipAxis__custom--PNRSelkirkGroupBarbadosLimitedMember_zPHfmr0DJQB4" title="Percentage Ownership">100</span></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif">USD</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif">PNR Selebi (Barbados) Limited</span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_903_ecustom--EntityPlaceOfIncorporation_c20240101__20240630__srt--OwnershipAxis__custom--PNRSelebiBarbadosLimitedMember_zDxgeLOL7Ik" title="Place of Incorporation">Barbados</span></span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20240630__srt--OwnershipAxis__custom--PNRSelebiBarbadosLimitedMember_zCVtfAnlSbJ4" title="Percentage Ownership">100</span></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif">USD</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif">Premium Nickel Group Proprietary Limited</span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_907_ecustom--EntityPlaceOfIncorporation_c20240101__20240630__srt--OwnershipAxis__custom--PremiumNickelGroupProprietaryLimitedMember_zvXsCrcPrUQk" title="Place of Incorporation">Botswana</span></span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20240630__srt--OwnershipAxis__custom--PremiumNickelGroupProprietaryLimitedMember_z1UNDC7fnybi" title="Percentage Ownership">100</span></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif">BWP</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif">Premium Nickel Resources Proprietary Limited</span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_905_ecustom--EntityPlaceOfIncorporation_c20240101__20240630__srt--OwnershipAxis__custom--PremiumNickelResourcesProprietaryLimitedMember_za4uMAXqENxc" title="Place of Incorporation">Botswana</span></span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20240630__srt--OwnershipAxis__custom--PremiumNickelResourcesProprietaryLimitedMember_zJWrXz6U3S0k" title="Percentage Ownership">100</span></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td><td><span style="font-family: Times New Roman, Times, Serif"> </span></td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif">BWP</span></td></tr> </table> <p id="xdx_8A5_zTKM8XxhdC25" style="display: none; margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_848_eus-gaap--UseOfEstimates_zQHFWzC3gfee" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(d)</i></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span><span id="xdx_866_z0IZSzU2YDjj">Use of estimates and judgment</span></span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of the unaudited condensed interim consolidated financial statements in accordance with US GAAP requires management to make judgements, estimates and assumptions that affect the implementation of the accounting policies and the recorded amount of assets and liabilities, income, expenses, and disclosure of contingent liabilities. Actual results may differ from these estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><img alt="" src="form10-q_002.jpg"/></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to the Unaudited Condensed Interim Consolidated Financial Statements </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and six months ended June 30, 2024</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(Expressed in Canadian dollars)</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Judgement</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Information about judgements made in applying accounting policies that have most significant effect on the amounts recognized in these consolidated financial statements are the same as disclosed in Note 3 of the consolidated financial statements for the year ended December 31, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Estimates</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Information about assumptions and estimates uncertainties as at June 30, 2024, that have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities in the next financial year are the same as disclosed in Note 3 of the consolidated financial statement for the year ended December 31, 2023.</span></p> <p id="xdx_857_ze4EyQMFKPn4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 22.4pt; text-align: justify; text-indent: -21pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
us-gaap Net Income Loss
NetIncomeLoss
-19140372 cad
us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 integer
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
3 integer
us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_848_eus-gaap--UseOfEstimates_zQHFWzC3gfee" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(d)</i></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span><span id="xdx_866_z0IZSzU2YDjj">Use of estimates and judgment</span></span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of the unaudited condensed interim consolidated financial statements in accordance with US GAAP requires management to make judgements, estimates and assumptions that affect the implementation of the accounting policies and the recorded amount of assets and liabilities, income, expenses, and disclosure of contingent liabilities. Actual results may differ from these estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><img alt="" src="form10-q_002.jpg"/></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to the Unaudited Condensed Interim Consolidated Financial Statements </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and six months ended June 30, 2024</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(Expressed in Canadian dollars)</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Judgement</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Information about judgements made in applying accounting policies that have most significant effect on the amounts recognized in these consolidated financial statements are the same as disclosed in Note 3 of the consolidated financial statements for the year ended December 31, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Estimates</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Information about assumptions and estimates uncertainties as at June 30, 2024, that have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities in the next financial year are the same as disclosed in Note 3 of the consolidated financial statement for the year ended December 31, 2023.</span></p>
CY2024Q2 PNRLF Harmonized Sales Tax Receivable Current
HarmonizedSalesTaxReceivableCurrent
558806 cad
CY2023Q4 PNRLF Harmonized Sales Tax Receivable Current
HarmonizedSalesTaxReceivableCurrent
301618 cad
CY2024Q2 us-gaap Value Added Tax Receivable Current
ValueAddedTaxReceivableCurrent
373079 cad
CY2023Q4 us-gaap Value Added Tax Receivable Current
ValueAddedTaxReceivableCurrent
223776 cad
CY2024Q2 PNRLF Other Receivables Miscellaneous Current
OtherReceivablesMiscellaneousCurrent
7441 cad
CY2023Q4 PNRLF Other Receivables Miscellaneous Current
OtherReceivablesMiscellaneousCurrent
7441 cad
CY2024Q2 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
939326 cad
CY2023Q4 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
532835 cad
CY2022Q4 us-gaap Mineral Properties Net
MineralPropertiesNet
8578627 cad
CY2023 PNRLF Mining Properties Additions Through Acquisitions
MiningPropertiesAdditionsThroughAcquisitions
483883 cad
CY2023 PNRLF Mining Properties Increase Decreases From Foreign Currency Translation Adjustments
MiningPropertiesIncreaseDecreasesFromForeignCurrencyTranslationAdjustments
467712 cad
CY2023Q4 us-gaap Mineral Properties Net
MineralPropertiesNet
8594798 cad
PNRLF Mining Properties Increase Decreases From Foreign Currency Translation Adjustments
MiningPropertiesIncreaseDecreasesFromForeignCurrencyTranslationAdjustments
-104287 cad
CY2024Q2 us-gaap Mineral Properties Net
MineralPropertiesNet
8699085 cad
CY2022Q3 PNRLF Percentage Of Interest To Be Acquired In Two Additional Deposits
PercentageOfInterestToBeAcquiredInTwoAdditionalDeposits
1 pure
CY2023Q3 PNRLF Acquisition Cost Of Additional Properties
AcquisitionCostOfAdditionalProperties
1000000 usd
PNRLF Asset Acquisition Description
AssetAcquisitionDescription
In addition, the Company agreed to additional work commitments of USD5,000,000 in the aggregate over the next four years. As a result of the extension of the Selebi Mining License, the remaining asset purchase obligations of the Company outlined in the original Selebi Mines asset purchase agreement with the Liquidator will each increase by 10%, $7,436,000 (USD 5,500,000) in total, while the trigger events remain unchanged. The existing 2% net smelter royalty (“NSR”) held by the Liquidator with respect to production from the Selebi Mining License will also apply to production from these additional deposits, subject to the Company’s existing buy-back right for 50% of the NSR (Note 10). The acquisition of the Phikwe South and the Southeast Extension deposits has not yet closed as at June 30, 2024
us-gaap Exploration Expense
ExplorationExpense
11279762 cad
us-gaap Exploration Expense
ExplorationExpense
8922345 cad
CY2023Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
9331274 cad
us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
128277 cad
PNRLF Property Plant And Equipment Foreign Currency Translation
PropertyPlantAndEquipmentForeignCurrencyTranslation
118526 cad
CY2024Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
9578077 cad
CY2023Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
842775 cad
us-gaap Depreciation
Depreciation
733902 cad
PNRLF Accumulated Depreciation And Amortization On Property Plant And Equipment Foreign Currency Translation
AccumulatedDepreciationAndAmortizationOnPropertyPlantAndEquipmentForeignCurrencyTranslation
20243 cad
CY2024Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
1596920 cad
CY2023Q4 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
8488499 cad
CY2023Q4 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
8488499 cad
CY2024Q2 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
7981157 cad
CY2024Q2 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
7981157 cad
CY2022Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
3491213 cad
CY2022Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
3491213 cad
CY2023 us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
6061525 cad
CY2023 us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
6061525 cad
CY2023 PNRLF Property Plant And Equipment Foreign Currency Translation
PropertyPlantAndEquipmentForeignCurrencyTranslation
-221464 cad
CY2023 PNRLF Property Plant And Equipment Foreign Currency Translation
PropertyPlantAndEquipmentForeignCurrencyTranslation
-221464 cad
CY2023Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
9331274 cad
CY2023Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
9331274 cad
CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
96543 cad
CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
96543 cad
CY2023 us-gaap Depreciation
Depreciation
744783 cad
CY2023 us-gaap Depreciation
Depreciation
744783 cad
CY2023 PNRLF Accumulated Depreciation And Amortization On Property Plant And Equipment Foreign Currency Translation
AccumulatedDepreciationAndAmortizationOnPropertyPlantAndEquipmentForeignCurrencyTranslation
1449 cad
CY2023 PNRLF Accumulated Depreciation And Amortization On Property Plant And Equipment Foreign Currency Translation
AccumulatedDepreciationAndAmortizationOnPropertyPlantAndEquipmentForeignCurrencyTranslation
1449 cad
CY2023Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
842775 cad
CY2023Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
842775 cad
CY2022Q4 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
3394670 cad
CY2022Q4 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
3394670 cad
CY2023Q4 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
8488499 cad
CY2023Q4 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
8488499 cad
CY2024Q2 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
169667 cad
CY2023Q4 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
93795 cad
CY2024Q2 us-gaap Accounts Payable Current
AccountsPayableCurrent
2803781 cad
CY2023Q4 us-gaap Accounts Payable Current
AccountsPayableCurrent
2383196 cad
CY2024Q2 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
1299765 cad
CY2023Q4 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
1803155 cad
CY2024Q2 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
4273213 cad
CY2023Q4 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
4280146 cad
CY2023Q2 PNRLF Proceeds From Financing Transactions Gross
ProceedsFromFinancingTransactionsGross
33999200 cad
CY2023Q2 PNRLF Number Of Transactions In Financing
NumberOfTransactionsInFinancing
3 integer
CY2023Q2 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
16249200 cad
CY2023Q2 us-gaap Debt Instrument Term
DebtInstrumentTerm
P3Y
CY2023Q2 PNRLF Proceeds From Net Smelter Royalty Option
ProceedsFromNetSmelterRoyaltyOption
2750000 cad
CY2023Q2 PNRLF Debt Instrument Interest Rate Stated Percentage Upon Occurrence Of Default
DebtInstrumentInterestRateStatedPercentageUponOccurrenceOfDefault
0.15 pure
CY2023Q2 PNRLF Debt Instrument Principal Minimum Repayment Amount
DebtInstrumentPrincipalMinimumRepaymentAmount
500000 cad
CY2023Q2 PNRLF Debt Instrument Principal Minimum Repayment Integral Multiple Amount
DebtInstrumentPrincipalMinimumRepaymentIntegralMultipleAmount
100000 cad
CY2023Q2 PNRLF Debt Instrument Prepayment Term
DebtInstrumentPrepaymentTerm
P1Y
CY2023Q2 PNRLF Debt Instrument Percent Of Prepayment Fee
DebtInstrumentPercentOfPrepaymentFee
0.10 pure
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CY2024Q2 us-gaap Contractual Obligation Due In Next Twelve Months
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CY2024Q2 PNRLF Contractual Obligation To Be Paid Year Three To Five
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CY2024Q2 us-gaap Contractual Obligation
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CY2024Q2 us-gaap Assets Current
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CY2024Q2 us-gaap Property Plant And Equipment Net
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CY2024Q2 us-gaap Property Plant And Equipment Net
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us-gaap Loss Contingency Disclosures
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<p id="xdx_80D_eus-gaap--LossContingencyDisclosures_zFHJGQCKFJrl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>16.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_82A_zQDIxrDC11ck">CONTINGENT LIABILITIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There are no environmental liabilities associated with the Selebi Assets and the Selkirk Assets as at the acquisition dates as all liabilities prior to the acquisitions are the responsibility of the sellers, BCL and TNMC, respectively. The Company has an obligation for the rehabilitation costs arising subsequent to the acquisitions. As of June 30, 2024, management is not aware of or anticipating any contingent liabilities that could impact the financial position or performance of the Company related to its exploration and evaluation assets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s exploration and evaluation assets are affected by the laws and environmental regulations that exist in the various jurisdictions in which the Company operates. It is not possible to estimate the future contingent liabilities and the impact on the Company’s operating results due to future changes in Company’s exploration and development of its projects or future changes in such laws and environmental regulations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 21pt; text-align: justify; text-indent: -21pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
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AdvisoryAndConsultancyExpenses
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PNRLF Advisory And Consultancy Expenses
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PNRLF Consulting Fees
ConsultingFees
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PNRLF Consulting Fees
ConsultingFees
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PNRLF Filing Fees
FilingFees
270702 cad
PNRLF Filing Fees
FilingFees
231551 cad
PNRLF General Office Expenses
GeneralOfficeExpenses
724180 cad
PNRLF General Office Expenses
GeneralOfficeExpenses
556623 cad
us-gaap General Insurance Expense
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us-gaap General Insurance Expense
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us-gaap Management Fee Expense
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CY2023Q4 us-gaap Other Inventories Spare Parts
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PNRLF Other Inventories Spare Parts Additions
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PNRLF Other Inventories Spare Parts Utilization
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CY2024Q2 us-gaap Other Inventories Spare Parts
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ecd Rule10b51 Arr Adopted Flag
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Files In Submission

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