2023 THIRD QUARTER REPORT SEPTEMBER 30, 2023
(Expressed in Canadian dollars)
Unaudited Condensed Interim Consolidated Financial Statements
- Condensed Interim Consolidated Statements of Financial Position
- Condensed Interim Consolidated Statements of Comprehensive Loss
- Condensed Interim Consolidated Statements of Changes in Equity
- Condensed Interim Consolidated Statements of Cash Flows
- Notes to the Condensed Interim Consolidated Financial Statements
NOTICE OF NO AUDITOR REVIEW OF
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The accompanying unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2023 of Endurance Gold Corporation ("the Company") have been prepared by the Company's management and have not been reviewed by the Company's independent auditor.
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ENDURANCE GOLD CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian dollars)
(Unaudited, Prepared by Management)
AS AT
September 30, | December 31, | |||
2023 | 2022 | |||
ASSETS | ||||
Current | ||||
Cash and cash equivalents | $ | 877,331 | $ | 1,862,445 |
Marketable securities (Note 4) | 645,143 | 1,058,940 | ||
Prepaid expenses and deposits | 319,863 | 25,497 | ||
Receivables | 1,059,089 | 1,729,804 | ||
Total current assets | 2,901,426 | 4,676,686 | ||
Non-current | ||||
Exploration and evaluation assets (Note 5) | 9,213,258 | 7,279,937 | ||
Reclamation bond | 130,000 | 37,000 | ||
Total non-current assets | 9,343,258 | 7,316,937 | ||
Total assets | $ | 12,244,684 | $ | 11,993,623 |
LIABILITIES | ||||
Current | ||||
Accounts payable and accrued liabilities | $ | 311,257 | $ | 171,522 |
Total liabilities | 311,257 | 171,522 | ||
EQUITY | ||||
Share capital (Note 6) | 19,661,170 | 18,950,971 | ||
Subscription receivable | 75,920 | - | ||
Reserves (Note 6) | 3,505,177 | 3,407,661 | ||
Deficit | (11,308,840) | (10,536,531) | ||
11,933,427 | 11,822,101 | |||
Total liabilities and equity | $ | 12,244,684 | $ | 11,993,623 |
Nature of operations (Note 1) | ||||
Commitments (Note 12) | ||||
Events after the reporting date (Note 13) |
Approved and authorized on behalf of the Board of Directors on November 20, 2023:
/s/ Robert T. Boyd | /s/ J. Christopher Mitchell | ||
Director | Director | ||
Robert T. Boyd | J. Christopher Mitchell |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
2
ENDURANCE GOLD CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Expressed in Canadian dollars)
(Unaudited, Prepared by Management)
Three months ended Sept. 30, | Nine months ended Sept. 30, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Expenses | ||||||||
Business development and property investigation | $ | 454 | $ | - | $ | 1,734 | $ | 10,994 |
Corporate communications | 32,697 | 42,047 | 201,630 | 176,002 | ||||
Listing and transfer agent fees | 2,705 | 2,417 | 28,032 | 22,355 | ||||
Management fees | 19,500 | 19,500 | 58,500 | 56,500 | ||||
Office and administrative | 25,227 | 28,931 | 69,029 | 67,049 | ||||
Professional fees | 13,223 | 10,477 | 15,417 | 31,229 | ||||
Share-based compensation (Note 6) | 53,550 | 20,631 | 63,355 | 661,341 | ||||
Loss before other items | (147,356) | (124,003) | (437,697) | (1,025,470) | ||||
Other items | ||||||||
Interest income | 7,119 | 8,143 | 47,357 | 19,680 | ||||
Gain (loss) on sale of marketable securities (Note 4) | (23,792) | - | (23,792) | 1,710 | ||||
Unrealized loss on marketable securities (Note 4) | (232,540) | (394,247) | (358,177) | (1,308,014) | ||||
(249,213) | (386,104) | (334,612) | (1,286,624) | |||||
Comprehensive loss for the period | $ | (396,569) | $ | (510,107) | $ | (772,309) | $ | (2,312,094) |
Basic and diluted loss per common share | $ | (0.00) | $ | (0.00) | $ | (0.01) | $ | (0.02) |
Basic and diluted weighted average number of | ||||||||
common shares outstanding | 145,490,212 | 132,786,636 | 145,416,705 | 134,590,827 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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ENDURANCE GOLD CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Expressed in Canadian dollars)
(Unaudited, Prepared by Management)
Share Capital | Subscription | ||||||
No. of Shares | Amount | Receivable | Reserves | Deficit | Total Equity | ||
Balance at December 31, 2022 | 145,379,342 | $18,950,971 | $ | - | $ 3,407,661 | $ (10,536,531) | $ 11,822,101 |
Shares issued for: | |||||||
Private placement | 3,400,000 | 748,000 | - | - | - | 748,000 | |
Share issuance costs | - | (37,801) | - | 34,161 | - | (3,640) | |
Share-based compensation | - | - | - | 63,355 | - | 63,355 | |
Subscription receivable | - | - | 75,920 | - | - | 75,920 | |
Comprehensive loss for the | |||||||
period | - | - | - | - | (772,309) | (772,309) |
Balance at September 30, 2023 148,779,342
$19,661,170 | $ 75,920 | $ 3,505,177 | $ (11,308,840) |
$ 11,933,427
Share Capital | Total | ||||
No. of Shares | Amount | Reserves | Deficit | Equity | |
Balance at December 31, 2021 | 127,120,990 | $13,171,719 | $ 2,339,536 | $ (8,214,377) | $ 7,296,878 |
Shares issued for: | |||||
Exploration and evaluation assets | 100,000 | 36,500 | - | - | 36,500 |
Exercise of stock options | 1,700,000 | 113,000 | - | - | 113,000 |
Fair value of options exercised | - | 95,000 | (95,000) | - | - |
Exercise of warrants | 1,124,000 | 281,000 | - | - | 281,000 |
Private placement | 7,637,500 | 3,055,000 | - | - | 3,055,000 |
Share issuance costs | - | (186,965) | 33,132 | - | (153,833) |
Share-based compensation | - | - | 661,341 | - | 661,341 |
Comprehensive loss for the period | - | - | - | (2,312,094) | (2,312,094) |
Balance at September 30, 2022 | 137,682,490 |
$16,565,254 | $ 2,939,009 | $ (10,526,471) |
$ 8,977,792
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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ENDURANCE GOLD CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in Canadian dollars)
(Unaudited, Prepared by Management)
Three months ended Sept. 30, | Nine months ended Sept.30 | |||
2023 | 2022 | 2023 | 2022 |
CASH FLOWS FROM (TO) OPERATING ACTIVITIES
Net income (loss) for the period Add adjustments:
(Gain) on sale of marketable securities Share-based compensation Unrealized loss on marketable securities Interest income
Changes in non-cash working capital items: Prepaid expenses and deposits Receivables
Accounts payable and accrued liabilities Net cash used in operating activities
CASH FLOWS FROM (TO) INVESTING ACTIVITIES
Exploration and evaluation assets Proceeds from sale of marketable securities Reclamation bond
Interest received
Net cash from (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of share capital Subscription receivable
Share issuance costs
Net cash provided by financing activities
Net increase in cash and cash equivalents during the period
Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period
$ | (396,569) | $ | (510,107) | $ | (772,309) | $ | (2,312,094) |
23,792 | - | 23,792 | (1,710) | ||||
53,550 | 20,631 | 63,355 | 661,341 | ||||
232,540 | 394,247 | 358,177 | 1,308,014 | ||||
(7,119) | (8,143) | (47,357) | (19,680) | ||||
(1,047) | 303,604 | (294,366) | 11,785 | ||||
19,130 | (41,407) | 662,408 | (64,204) | ||||
(65,822) | (39,975) | 9,960 | 35,687 | ||||
(141,545) | 118,850 | 3,660 | (380,861) | ||||
(975,813) | (1,558,185) | (1,803,546) | (2,705,753) | ||||
31,828 | - | 31,828 | 5,760 | ||||
- | - | (93,000) | - | ||||
5,506 | 8,143 | 55,664 | 19,680 | ||||
(938,479) | (1,550,042) | (1,809,054) | (2,680,313) | ||||
748,000 | 295,250 | 748,000 | 3,449,000 | ||||
75,920 | - | 75,920 | - | ||||
(3,640) | - | (3,640) | (153,833) | ||||
820,280 | 295,250 | 820,280 | 3,295,167 | ||||
(259,744) | (1,135,942) | (985,114) | 233,993 | ||||
1,137,075 | 1,883,802 | 1,862,445 | 513,867 | ||||
$ | 877,331 | $ | 747,860 | $ | 877,331 | $ | 747,860 |
Supplemental disclosures with respect to cash flows (Note 7)
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
5
ENDURANCE GOLD CORPORATION
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the nine-month period ended September 30, 2023
(Unaudited, Prepared by Management)
-
NATURE OF OPERATIONS
Endurance Gold Corporation (the "Company") was incorporated under the Canada Business Corporations Act on December 16, 2003 and continued into British Columbia on August 16, 2004. The head office and principal address of the Company is at Suite 1212, 666 Burrard Street, Vancouver, British Columbia, Canada V6C 2X8. The Company's registered address and records office is at Suite 1600, 925 West Georgia Street, Vancouver, British Columbia, V6C 3L2.
The Company is engaged in the exploration and development of mineral properties in North America and has not yet determined whether its properties contain ore reserves that are economically recoverable. The Company has not generated revenue from operations and will need to seek additional financing to meet its exploration and development objectives. The mineral property exploration business involves a high degree of risk. The recoverability of the amounts expended on mineral interests by the Company is dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of its mineral properties and upon future profitable production or proceeds from the disposition of its property interests. These unaudited condensed interim consolidated financial statements ("Condensed Interim FS") do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.
For the nine months ended September 30, 2023, the Company reported a net loss of $772,309 and as of that date the Company's deficit was $11,308,840. The Company's net working capital position at September 30, 2023 was $2,590,169, inclusive of marketable securities with a fair value of $645,143. If the Company does not or cannot sell a portion or all of the marketable securities at current market values, it may have to raise additional funds to continue operations and to complete its future exploration programs. While the Company has been successful in the past in raising capital, there is no assurance that such financing will be available on a timely basis and under terms acceptable to the Company. - BASIS OF PREPARATION Statement of Compliance
These unaudited Condensed Interim FS have been prepared in accordance with International Financial Reporting
Standards ("IFRS") applicable to the preparation of interim financial statements, including International Accounting Standard 34 ("IAS 34") Interim Financial Reporting. These unaudited Condensed Interim FS include the financial statements of the Company and its wholly-owned subsidiary.
These unaudited Condensed Interim FS were authorized for issue by the Audit Committee and Board of Directors on November 20, 2023 and should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2022. - SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in these unaudited Condensed Interim FS are consistent with the accounting policies disclosed in Notes 2 and 3 of the Company's audited consolidated financial statements for the year ended December
31, 2022.
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ENDURANCE GOLD CORPORATION
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the nine-month period ended September 30, 2023
(Unaudited, Prepared by Management)
4. MARKETABLE SECURITIES
Marketable securities consist of equity securities of an entity or entities over which the Company does not have control or significant influence.
Sept. 30, 2023 | Dec. 31, 2022 | ||||
Fair value, beginning of the period | $ | 1,058,940 | $ | 2,243,285 | |
Proceeds from sales, net of commission | (31,828) | (5,760) | |||
Gain (loss) on sale of marketable securities | (23,792) | 1,710 | |||
Unrealized gain (loss) on marketable securities | (358,177) | (1,180,295) | |||
$ | 645,143 | $ | 1,058,940 |
With its main business focus being mineral exploration, the Company does not generally intend to hold its investments in marketable securities for long-term periods, and accordingly these are classified as current assets. All of the Company's investments in marketable securities are also classified as fair value through profit and loss ("FVTPL").
5. EXPLORATION AND EVALUATION ASSETS
As at September 30, 2023, the Company's exploration and evaluation assets are located in North America. Expenditures incurred on exploration and evaluation assets for that period were as follows:
Reliance, | Bandito, | Elephant | McCord, | |||
BC, | Yukon, | Mountain, | Alaska | TOTAL | ||
CANADA | CANADA | Alaska, USA | USA | |||
Acquisition 12/31/22 | $ 611,815 | $ | - | $ 467,703 | $ 19,850 | $ 1,099,368 |
Additions: | ||||||
Option payment | 5,000 | - | - | - | 5,000 | |
5,000 | - | - | - | 5,000 | ||
Acquisition 9/30/23 | 616,815 | - | 467,703 | 19,850 | 1,104,368 | |
Deferred exploration 12/31/22 | 4,383,860 | 31,906 | 1,620,726 | 144,077 | 6,180,569 | |
Additions: | ||||||
Drilling | 832,482 | - | - | - | 832,482 | |
Field expenses | 589,372 | - | - | - | 589,372 | |
Geochemistry | 84,856 | - | - | - | 84,856 | |
Geological and miscellaneous | 378,091 | 18,871 | 2,010 | - | 398,972 | |
Geophysics | 22,500 | - | - | - | 22,500 | |
Land and recording fees | 139 | - | - | - | 139 | |
1,907,440 | 18,871 | 2,010 | - | 1,928,321 | ||
Deferred exploration 9/30/23 | 6,291,300 | 50,777 | 1,622,736 | 144,077 | 8,108,890 | |
Total exploration and evaluation | $ 6,908,115 | $ 50,777 | $ 2,090,439 | $ 163,927 | $ 9,213,258 | |
assets 9/30/23 | ||||||
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ENDURANCE GOLD CORPORATION
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the nine-month period ended September 30, 2023
(Unaudited, Prepared by Management)
5. EXPLORATION AND EVALUATION ASSETS - continued
Expenditures incurred on these property interests for the year ended December 31, 2022 were as follows:
Reliance, | Bandito, | Elephant | McCord, | |||||
BC, | Yukon, | Mountain, | Alaska | Other | TOTAL | |||
CANADA | CANADA | Alaska, USA | USA | |||||
Acquisition 12/31/21 | $ 280,632 | $ | - | $ 362,428 | $ 13,005 | $ | - | $ 656,065 |
Additions: | ||||||||
Legal and related expenses | 5,683 | - | 50 | - | 5,733 | |||
Option payments | 325,500 | - | 105,225 | 6,845 | 6,845 | 444,415 | ||
331,183 | - | 105,275 | 6,845 | 6,845 | 450,148 | |||
Acquisition 12/31/22 | 611,815 | - | 467,703 | 19,850 | 6,845 | 1,106,213 | ||
Deferred exploration 12/31/21 | 1,827,173 | - | 1,562,423 | 123,359 | - | 3,512,955 | ||
Additions: | ||||||||
Drilling | 1,821,147 | - | - | - | - | 1,821,147 | ||
Field expenses | 1,095,865 | - | 323 | - | - | 1,096,188 | ||
Geochemistry | 267,979 | - | - | - | - | 267,979 | ||
Geological and miscellaneous | 364,824 | 22,493 | 4,915 | 2,668 | - | 394,900 | ||
Geophysics | - | 23,800 | - | - | - | 23,800 | ||
Land and recording fees | 764 | - | 53,065 | 18,050 | - | 71,879 | ||
3,550,579 | 46,293 | 58,303 | 20,718 | - | 3,675,893 | |||
Deferred exploration 12/31/22 | 5,377,752 | 46,293 | 1,620,726 | 144,077 | - | 7,188,848 | ||
B.C. mining exploration tax credit | (993,892) | - | - | - | - | (993,892) | ||
Yukon mineral exploration Program | - | (14,387) | - | - | (14,387) | |||
Write-off | - | - | - | - | (6,845) | (6,845) | ||
Total exploration and evaluation | $4,995,675 | $ 31,906 | $2,088,429 | $163,927 | $ | - | $7,279,937 | |
assets 12/31/22 | ||||||||
Reliance Gold Project, British Columbia, CANADA (Option to earn 100%)
- Reliance Gold Property
In June 2020, the Company finalized an option agreement (the "Reliance Gold Option Agreement") with two private vendors (collectively, the "Optionors") which replaced a letter agreement signed in September 2019. Under the terms of the Reliance Gold Option Agreement, the Company can earn a 100% interest in the Reliance Gold Property located near Gold Bridge, British Columbia, for cash consideration in the aggregate amount of $300,000 ($100,000 paid to date), the completion of exploration expenditures in the aggregate amount of $3,000,000 (incurred) by December 31, 2024, and the issuance of up to 4,000,000 common shares in stages (1,500,000 common shares issued at a value of $364,500) by December 31, 2025. The option is subject to a 2.5% Net Smelter Return ("NSR") royalty, three-fifths of which (1.5% NSR) can be purchased by the Company at any time for $1,000,000. In addition, the Company issued 200,000 common shares with a value of $19,000 to PI Financial Corp. for introducing the Optionors to the Company.
8
ENDURANCE GOLD CORPORATION
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the nine-month period ended September 30, 2023
(Unaudited, Prepared by Management)
5. EXPLORATION AND EVALUATION ASSETS - continued
- Olympic Property
In October 2022, the Company finalized an option agreement (the "Avino Option Agreement") with Avino Silver & Gold Mines Limited ("Avino") which replaced a letter agreement signed in April 2022. Under the terms of the Avino Option Agreement, the Company has an option to earn a 100% interest in the Olympic Property located immediately adjoining and contiguous with the Company's Reliance Gold Property in southern British Columbia for aggregate consideration of $100,000 in cash payments ($25,000 paid), the issuance of 1,500,000 common shares of the Company (200,000 issued at a value of $72,000) and the completion of $300,000 in exploration expenditures on or before December 31, 2024. The option is subject to a 2.0% NSR royalty, one-half of which (1% NSR) can be purchased by the Company for $750,000, and the remaining balance purchased for $1,000,000, at any time prior to the commencement of Commercial Production.
As part of the final requirement to earn its interest, the Company has agreed to grant Avino 750,000 share purchase warrants by December 31, 2024 (the "Warrants Payment"), subject to future Exchange acceptance. In addition, if the Company is successful in defining a National Instrument 43-101-compliant mineral resource of at least 500,000 gold-equivalent ounces on the Olympic Property by December 31, 2024, the Company will pay Avino a $1,000,000 discovery bonus. Any shares or Warrants issued will be subject to a four-month hold period from the date of issuance in accordance with the policies of the Exchange.
- Sanchez Claims
In October 2022, the Company entered into a letter agreement (the "Sanchez Agreement") with a private vendor whereby the Company has an option to earn a 100% interest in the Sanchez claims, which adjoin the eastern boundary of the Company's Reliance Gold Property aggregate consideration of $10,000 in cash payments by January 31, 2023 (paid) and the issuance of 300,000 common shares of the Company on or before December 31, 2025 (40,000 issued at a value of $16,000).
Elephant Mountain Project, Alaska, USA
- Elephant Property (100% owned)
In December 2020, the Company acquired a 100% interest in the Elephant Property located in the Manley Hot Springs placer gold mining district in Alaska by completing all of the obligations to earn its interest, including incurred exploration expenditures of US$200,000, issued to the vendor 400,000 common shares of the Company with a value of $24,125 and paid cumulative cash payments totaling US$200,000. The property interest is subject to a 2% NSR, one-half of which can be purchased by the Company at any time for US$750,000.
- Trout and Wolverine Property (Option to earn 100%)
In April 2018, the Company entered into an option agreement (the "Trout-Wolverine Option Agreement") with Frantz LLC, replacing the letter agreement signed in March 2017. Pursuant to the terms of the Trout-Wolverine Option Agreement, the Company can earn a 100% interest in the Trout-Wolverine Property, located immediately northeast of the Company's Elephant Property, by completing a total of US$200,000 (incurred) in exploration expenditures, cash payment of US$180,000 (US$80,000 paid to date) in stages until December 31, 2024, and issuing to the vendor 300,000 common shares (issued at a value of $83,375) of the Company by December 31, 2022. The option is subject to a 2% NSR interest, one-half of which can be purchased by the Company at any time for US$500,000.
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Endurance Gold Corporation published this content on 20 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 00:43:04 UTC.