Core Assets : Management Discussion & Analysis for the Nine Months Ended June 30, 2022
08/18/2022 | 01:04pm EDT
Management Discussion & Analysis for the Nine Months Ended June 30, 2022
The following discussion and analysis of the financial position and results of operations for Core Assets Corp. should be read in conjunction with the condensed interim statements for the nine months ended June 30, 2022, which are prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS").
The effective date of this report is August 18, 2022.
All financial figures presented herein are expressed in Canadian Dollars (CDN$) unless otherwise specified.
Nature of Business
Core Assets Corp. ("Core" or the "Company") was incorporated on April 20, 2016, under the Business Corporations Act (British Columbia) and is in the business of acquiring, exploring, developing and evaluating mineral resource properties. The Company is in the exploration stage and has interests in properties located in British Columbia ("BC"), Canada.
The head office, principal address and registered and records office of the Company are located at 1450
789 West Pender, Vancouver, BC, Canada, V6C 1H2. The technical information included in this Management Discussion & Analysis ("MD&A"), unless otherwise stated, has been reviewed by Nicholas Rodway B.SC, P. Geo, who is a Qualified Person under National Instrument 43-101 ("NI 43-101").
On July 8, 2020, the Company received a final receipt from the British Columbia Securities Commission for its Long Form Prospectus dated July 7, 2020. On July 27, 2020, the Company's shares were listed for trading on the Canadian Securities Exchange ("CSE") under the symbol "CC". The Company's shares also trade on the OTCQB under the symbol "CCOOF" and on the Frankfurt Stock Exchange under the symbol "A2QCCU".
On October 6, 2021, the Company announced it has engaged Zimtu Capital Corp. to provide marketing services as part of a cooperative marketing program. In consideration, the Company will pay $12,500 a month for the next twelve months.
On November 1, 2021, the Company announced that its common shares are now eligible for settlement through the Depository Trust Company ("DTC"), a subsidiary of the Depository Trust & Clearing Corp. which manages the electronic clearing and settlement of publicly traded companies in the United States.
On November 29, 2021, the Company announced that it has submitted a permit amendment application to the British Columbia Ministry of Energy, Mines and Low Carbon Innovation for the Blue Property (the "Property"), located in the Atlin Mining District of northwest British Columbia. This amendment requests
for additional helicopter-supported drill sites and the option to complete induced polarization geophysical surveys within a broader area totalling 29,460 ha.
On December 1, 2021, the Company appointed Mr. Andrew Carne to the Board of Directors and accepted the resignation of Ms. Alicia Milne.
On December 21, 2021, the Company announced the findings and interpretations of petrographic examinations completed on 17 samples collected within the 6.6 x 1.8-kilometer mineralized trend at the Blue Property during the 2021 Phase 2 exploration program. The Company has also begun drill tendering for the 2022 exploration season at the Blue Property (the "Property") located in the Atlin Mining District of British Columbia.
On January 21, 2022, the Company completed a non-brokered private placement (the "Offering") of 6,657,752 units (each, a "Unit") at a price of $0.24 per Unit for gross proceeds of $1,597,860. Each Unit is comprised of one common share (each, a "Share") in the capital of the Company and one whole transferable Share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to purchase one additional Share (each, a "Warrant Share") for a period of two years from the closing date (the "Closing Date") at an exercise price of $0.39 per Warrant Share. In connection with the Offering, Crescat Capital LLC ("Crescat Capital") has agreed to make a strategic investment in the Company of $1,275,000 (the "Crescat Capital Investment"). Following the completion of the Crescat Capital Investment, Crescat Capital will have an option to participate in future financings of the Company to maintain its interest in the Company for so long as it holds greater than 3% of the issued and outstanding Common Shares. All securities issued in connection with the Offering will be subject to a four month hold as required under applicable securities laws and, in addition, will be subject to an 18 month hold from the Closing Date split up into 3 releases of one third (1/3) of the securities issued under the Offering every six months from the Closing Date The proceeds of the Offering are anticipated to be used for further exploration programs at the Company's Blue Property and for general working capital purposes. Cash finder's fees of $4,101 were paid to eligible finders in connection with the Offering. Andrew Carne and Sean Charland, directors of the Company, and Jody Bellefleur, the Chief Financial Officer of the Company, were issued 20,800 Units, 85,000 Units and 25,000 Units respectively under the Offering.
On January 24, 2022, the Company announced that it had appointed Ms. Monica Barrington as Vice President of Exploration, Mr. Joel Faltinsky as Director, and Mr. David Gower as a Technical Advisor to the Company. The Company also announced the resignation of Mr. Scott Rose as Director and Corporate Secretary.
On January 24, 2022, the Company announced it has engaged CEO Views to author and publish an overview of the Company and its business and properties. The article is expected to be published in mid- 2022 and will be available solely on CEO Views' website. CEO Views will be paid a cash fee of $9,105 for its services. CEO Views is independent to Core Assets.
On January 31, 2022, the Company announced channel sample results from five outcropping carbonate replacement massive sulphide occurrences at the Jackie Target, part of the 6.6km long by 1.8km wide Silver Lime carbonate replacement deposit ("CRD") prospect. Sawn channel samples were collected as part of the Company's 2021 maiden field campaign at Silver Lime.
On February 14, 2022, the Company announced channel sample results from 10 carbonate replacement and skarn, massive-to-semi massive sulphide occurrences at the Sulphide City and Grizzly Targets during Phase 2 of the 2021 Exploration Program carried out at the Blue Property.
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On February 28, 2022, the Company announced assay results from the remaining rock samples collected during Phase 2 of 2021 and awarded Dorado Drilling the 2022 diamond drilling contract for the Blue Property.
On March 3, 2022, the Company granted stock options to certain directors, officers, employees and consultants of the Company for the purchase of up to 4,500,000 common shares of the Company pursuant to its Stock Option Plan. Each option is exercisable for a period of 4 years at a price of $0.50 per common share, vesting over two years in increments of 25% every 6 months.
On March 14, 2022, the Company announced results from six backpack (25mm diameter) drill holes completed during 2021 Phase 2 exploration efforts at the Sulphide City (Whaleback) and Jackie targets on the Company's Blue Property.
On March 23, 2022, the Company announced the appointment of Mr. Joshua Vann as Vice-President of Business Development and Strategy.
On April 6, 2022, the Company announced the discovery of a mineralized copper occurrence observed during a property accessibility assessment carried out in late March of 2022 at the Laverdiere Project.
On April 22, 2022, the Company announced results and interpretations from the 2021 Versatile Time Domain Electromagnetics (VTEM) Geophysical Survey completed at the Laverdiere Fe-Cu-Au Skarn- Porphyry Project.
On May 17, 2022, the Company announced results and interpretations from the 2021 versatile time- domain electromagnetics (VTEM) geophysical survey completed at the Silver Lime carbonate replacement project on the central Blue property in the Atlin mining district of northwest British Columbia.
On May 31, 2022, the Company announced that it had mobilized crews for the inaugural 5,000 metre diamond drilling campaign at its district scale Blue Property.
On June 6, 2022, the Company announced that the 2022 drilling campaign had begun at the Laverdiere Skarn-Porphyry Project part of the Blue Property.
On June 17, 2022, the Company announced the completion of two diamond drill holes totalling 671 metres at the Laverdiere Skarn-Porphyry Project.
On June 29, 2022, the Company announced the completion of three additional diamond drill holes totalling 784 metres at the South Adit area of the Laverdiere Skarn-Porphyry Project, eastern Blue Property.
On July 7, 2022, the Company announced the completion of its Phase I diamond drilling campaign at the Laverdiere Skarn-Porphyry Project, eastern Blue Property.
On July 19, 2022, the Company announced the completion of 1,299 metres of HQ-sized diamond drilling at the Jackie Ag-Pb-Zn-Cu Carbonate Replacement (CRO) Target, part of the Silver Lime Project, central Blue Property.
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On August 8, 2022, the Company announced assay results from the first two diamond holes completed at the Laverdiere Fe-Cu-AuSkarn-Porphyry Project, eastern Blue Property.
On August 12, 2022, the Company announced the intersection of significant CRD mineralization in every drill hold completed to-date and the discovery of an extensive Mo-Cu-bearing porphyry at the Sulphide City Target, part of the Silver Lime Porphyry-CRD Project, central Blue Property.
On August 16, 2022, the Company announced that it intends to undertake a non-brokered private placement offering (the "Offering") of up to 2,459,016 units (each, a "Unit") at a price of $0.61 per Unit for gross proceeds of up to $1,500,000. Each Unit will be comprised of one common share (each, a "Share") in the capital of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one additional Share (a "Warrant Share") for a period of two years from the closing date of the Offering at a price of $0.85 per Warrant Share. All securities issued in connection with the Offering will be issued pursuant to one or more prospectus exemptions available to the Company and will be subject to a hold period of four months and one day from the date of issuance as required under applicable securities laws. The Offering is expected to close on or about August 25, 2022, or such other earlier or later date as may be determined by the Company. Closing of the Offering will be subject to customary closing conditions including applicable CSE approval. The net proceeds of the Offering are anticipated to be used for further exploration programs at the Company's Blue Property and for general working capital purposes. Insiders of the Company may participate in the Offering. The Company does not anticipate paying any finder's fees in connection with the Offering at this time.
Selected Annual Information
The following is a summary of the financial data of the Company for the last three completed fiscal year ends and are derived from the audited annual financial statements of the Company:
For the years ended September 30,
Loss from continuing operations
Loss from continuing operations (per share, basic and diluted)
Net loss (per share, basic and diluted)
Net comprehensive loss for the year
Total long-term financial liabilities
Cash dividend declared per share
The Company has recorded losses in each of its three most recently completed fiscal years and expects to continue to record losses until such time as an economic resource is identified, developed, and brought into profitable commercial operation on one or more of the Company's properties or otherwise disposed of at a profit.
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Business of the Company
The principal business carried on and intended to be carried on by the Company is the exploration of mineral resources on the Company's principal property, being the Blue Property, which is in the exploration stage.
To date, the Company has raised $6,359,905 through the sale of common shares.
Property Acquisition Details
On December 10, 2018, the Company signed an agreement with Zimtu Capital Corp. ("Zimtu"), a related party, whereby the Company can earn a 100% interest in and to the Blue Property, in British Columbia. For its participation in the transaction, the Company will pay $100,000 (paid) and issue 3,000,000 common shares of the Company in staged payments (1,000,000 shares with a fair value of $50,000 issued during the year ended September 30, 2019, and 2,000,000 with a fair value of $225,000 were issued during the year ended September 30, 2021). Zimtu will retain a 2% Net Smelter Return (NSR) royalty. The Company has the right to buy back 1% of the NSR within 5 years of the agreement by paying $1,000,000. The original agreement was amended June 10, 2021, to change the date of the final payment from December 10, 2021 to June 15, 2021. On January 7, 2022, the Company and Zimtu signed an agreement to remove the 2% NSR royalty from the original and amended agreements.
In August 2020, the Company acquired 8 additional claims in and around the Company's Blue and Silver Lime properties from Zimtu. The cost to acquire the claims amounted to the cost of staking paid by Zimtu ($23,025). Zimtu will retain a 2% NSR royalty, of which the Company shall have the right to buy back 1% within 5 years of the agreement by paying $1,000,000. The addition of these claims expanded and consolidated the Blue Property and the Silver Lime Property into one contiguous property that will continue to be called the Blue Property. On January 7, 2022, the Company and Zimtu signed an agreement to remove the 2% NSR royalty from the original and amended agreements.
In June 2021, the Company acquired 6 additional claims in and around the Company's Blue and Silver Lime properties from Zimtu. The cost to acquire the claims amounted to the cost of staking paid by Zimtu of $26,095 plus 20% interest for a total of $31,314.
During the year ended September 30, 2021, the Company staked an additional 82,257 ha of land, increasing its land package to approximately 108,337 ha. The cost of the staking was $140,950.
On April 6, 2022, the Company acquired a 100% interest in two mineral tenures, consisting of approximately 3,311 Ha, known as the Atlin Lake Claims, at a cost of $10,000 (paid) from an individual. The two tenures cover the western side of the Willison glacier which is thought to potentially be the extension of the causative intrusion at the Silver Lime Project.
On August 12, 2022, the Company announced the intersection of significant CRD mineralization in every drill hole completed to-date and the discovery of an extensive Mo-Cu-bearing porphyry at the Sulphide City Target, part of the Silver Lime Porphyry-CRD Project. Diamond drilling at the Sulphide City Target also intersected a Mo-Cu-bearing porphyry believed to be the source feeding the >250 high-grade carbonate
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Core Assets Corp. published this content on 18 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2022 17:03:05 UTC.