CANADA NICKEL COMPANY INC. Canada Nickel Company Inc.
Condensed Interim Consolidated Financial Statements
For the Three and Six Months Ended April 30, 2021 and 2020
(Expressed in Canadian Dollars, unless otherwise noted)
Notice of No Auditor Review of Interim Financial Statements
Under National Instrument 51-102, Part 4, subsubsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying condensed interim consolidated financial statements of the company have been prepared by and are the responsibility of the company's management. The company's independent auditor has not performed an audit or review of these condensed interim consolidated financial statements in accordance with standards established by the Canadian Institute of Chartered Professional Accountants.
Canada Nickel Company Inc.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in Canadian Dollars)
Unaudited
April 30 | October 31 | |||
Note | 2021 | 2020 | ||
ASSETS | $ | $ | ||
Current assets | 7,180,048 | 11,167,265 | ||
Cash and cash equivalents | ||||
Accounts receivable | 2,287,026 | 1,223,397 | ||
Loan receivable | 4 | - | 160,224 | |
Prepaid expenses | 728,924 | 274,843 | ||
Total current assets | 10,195,998 | 12,825,729 | ||
Non-current assets | 29,673,958 | 20,288,628 | ||
Exploration and evaluation assets | 5 | |||
Property, plant and equipment | 517,730 | 35,161 | ||
Total assets | 40,387,686 | 33,149,518 |
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities
Accounts payable and accrued liabilities Flow-through share premium
Total liabilities
Shareholders' equity
Share capital
Share-based compensation and warrant reserves Deficit
Total shareholders' equity
Total liabilities and shareholders' equity
12 | 2,654,823 | 1,475,542 | |
6(a) | - | 282,027 | |
2,654,823 | 1,757,569 | ||
6 | 41,181,282 | 30,729,738 | |
7,8,9 | 3,051,607 | 3,739,483 | |
(6,500,026) | (3,077,272) | ||
37,732,863 | 31,391,949 | ||
40,387,686 | 33,149,518 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
Nature of operations and going concern (Note 1)
Commitments and contingencies (Note 12)
Signed on behalf of the Board: | |
"Mark Selby" | "David Smith" |
Mark Selby, Director | David Smith, Director |
1
Canada Nickel Company Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars)
Unaudited
For the three and six months ended April 30
For the three months | For the six months | ||||
ended April 30 | ended April 30 | ||||
Note | 2021 | 2020 | 2021 | 2020 | |
Expenses | $ | $ | $ | $ | |
211,762 | 353,322 | ||||
Salaries and management fees | 60,000 | 112,935 | |||
General and administrative costs | 22,550 | 91,790 | 246,409 | 108,742 | |
Professional fees | 143,480 | 15,170 | 251,130 | 30,395 | |
Consulting and advisory | 310,628 | 210,967 | 615,592 | 211,286 | |
Promotion and communication | 117,576 | 83,793 | 252,568 | 238,876 | |
Investor relations and marketing | 73,025 | 175,824 | 138,348 | 287,354 | |
Share-based compensation | 8,9 | 1,155,705 | 126,381 | 1,841,991 | 148,622 |
Travel and other | 11 | 5,166 | 5,421 | 60,182 | |
2,034,737 | 769,091 | 3,704,781 | 1,198,392 | ||
Flow-through share premium | 6(a) | - | - | (282,027) | - |
Net loss and comprehensive loss | 2,034,737 | 769,091 | 3,422,754 | 1,198,392 | |
Loss per share - basic and diluted | 10 | $0.02 | $0.01 | $0.04 | $0.03 |
Weighted average number of shares | 82,120,009 | 51,739,757 | 81,092,195 | 39,936,058 | |
outstanding |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
2
Canada Nickel Company Inc.
Condensed Interim Consolidated Statements of Cash Flow
(Expressed in Canadian Dollars)
Unaudited
For the six months ended April 30
Note | 2021 | 2020 | |
Operating activities | $ | $ | |
(3,422,754) | |||
Net loss | (1,198,392) | ||
Adjustments for non-cash items: | 1,841,991 | ||
Share-based compensation | 148,622 | ||
Flow-through share premium | (282,027) | - | |
Changes in non-cash working capital items: | (1,063,629) | ||
Accounts receivable | (552,589) | ||
Prepaid expenses | (279,081) | (69,106) | |
Accounts payable and accrued liabilities | 15,555 | 2,252,167 | |
Net cash used in operating activities | (3,189,945) | 580,702 | |
Investing activities | (7,306,274) | ||
Exploration and evaluation expenditures | 5 | (6,203,664) | |
Purchase of property, plant and equipment | (133,655) | - | |
Loan receivable, net of repayments | 4 | - | (650,000) |
Net cash used in investing activities | (7,439,929) | (6,853,664) | |
Financing activities | (115,000) | ||
Proceeds from share issuances, net of issuance costs | 6 | 6,510,092 | |
Proceeds from exercise of warrants, compensation | 6,757,657 | ||
options and stock options | 7,8 | - | |
Net cash provided from (used in) financing activities | 6,642,657 | 6,510,092 | |
Cash and cash equivalents, beginning of year | 11,167,265 | - | |
Net change in cash and cash equivalents | (3,987,217) | 237,130 | |
Cash and cash equivalents, end of year | 7,180,048 | 237,130 | |
Supplementary disclosure | |||
Value of shares issued for acquisitions | 5 | 829,520 | 8,000,000 |
Value of shares issued for settlement of accounts | 759,250 | ||
payable | 6 | 137,500 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
3
Canada Nickel Company Inc.
Condensed Interim Consolidated Statement of Changes in Shareholders' Equity
(Expressed in Canadian Dollars)
Unaudited
Note | Number of | Share-based | |||||
common | compensation | Warrants | |||||
shares | Share capital | reserve | reserve | Deficit | Total | ||
# | $ | $ | $ | $ | $ | ||
Balance, October 31, 2019 | 6 | 1 | - | - | - | - | - |
Share issuance - private placements, net | 24,999,999 | 6,510,092 | - | - | - | 6,510,092 | |
Flow-through share premium | 6 | - | (550,683) | - | - | - | (550,683) |
Share issuance - acquisitions | 5 | 32,000,000 | 8,000,000 | - | - | - | 8,000,000 |
Shares issued to settle accounts payable | 275,000 | 137,500 | - | - | - | 137,500 | |
Fair value of share-based compensation | 8,9 | - | - | 148,622 | - | - | 148,622 |
Net loss for the year | - | - | - | - | (1,198,392) | (1,198,392) | |
Balance, April 30, 2020 | 57,275,000 | 14,096,909 | 148,622 | - | (1,198,392) | 13,047,139 | |
Balance, October 31, 2020 | 7 | 79,939,316 | 30,729,738 | 1,165,057 | 2,574,426 | (3,077,272) | 31,391,949 |
Share issuance - warrants exercised | 3,189,224 | 8,017,177 | - | (1,884,111) | - | 6,133,066 | |
Share issuance - compensation options exercised | 346,950 | 855,958 | - | (335,533) | - | 520,425 | |
Fair value of share-based compensation | 8,9 | - | - | 1,841,991 | - | - | 1,841,991 |
Share issuance - stock options exercised | 8 | 416,664 | 178,926 | (74,760) | - | - | 104,166 |
Share issuance - restricted share units exercised | 9 | 328,750 | 170,950 | (170,950) | - | - | - |
Share issuance - acquisitions | 5 | 248,000 | 829,520 | - | - | - | 829,520 |
Shares issued to settle 2020 accounts payable | 242,781 | 45,000 | - | - | - | 45,000 | |
Shares issued to settle 2021 accounts payable | 105,000 | 289,500 | - | - | - | 289,500 | |
Shares to be issued to settle accounts payable | - | 64,513 | - | (64,513) | - | - | |
Net loss for the year | - | - | - | - | (3,422,754) | (3,422,754) | |
Balance, April 30, 2021 | 84,816,685 | 41,181,282 | 2,761,338 | 290,269 | (6,500,026) | 37,732,863 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Canada Nickel Company Inc. published this content on 16 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 June 2021 03:53:00 UTC.
