FPX Nickel : Third Quarter Report for the year ended September 30, 2021

FPX NICKEL CORP.

Condensed Consolidated Interim Financial Statements

September 30, 2021 & 2020

(Unaudited)

(Stated in Canadian Dollars)

FPX NICKEL CORP.

Condensed Consolidated Interim Statements of Financial Position

(Unaudited)

(Stated in Canadian Dollars)

			Sep. 30		Dec. 31
			2021	2020
		$	$
	ASSETS
Current
Cash and cash equivalents (note 3)	15,453,516	5,835,074
Amounts receivable (note 4)	241,515	57,930
Prepaid expenses (note 5)		754,671		24,390
Total Current Assets	16,449,702	5,917,394
Reclamation deposits (note 6)	133,597	133,288
Right of use asset - office lease (note 9)	256,885	50,663
Exploration and evaluation assets (note 7)		13,937,680		10,222,912
Total Assets	30,777,864	16,324,257
LIABILITIES
Current
Accounts payable and accrued liabilities (note 8)	157,564	117,363
Lease liability - current portion (note 9)	82,087	33,992
Interest payable (note 10)		-		63,660
Total Current Liabilities	239,651	215,015
Lease liability - non-current portion (note 9)	175,568	21,549
Loan payable (note 10)	-	3,371,582
CEBA loan payable (note 14)		-		40,000
Total Liabilities	415,219	3,648,146
	EQUITY
Share capital (note 11)	62,456,465	44,188,865
Other equity reserve (note 11)	9,503,382	6,884,555
Deficit		(41,597,202)		(38,397,309)
Total Shareholders' Equity	30,362,645	12,676,111
Total Liabilities and Shareholders' Equity
30,777,864	16,324,257
Nature and continuance of operations (note 1)
Commitments (note 14)
Approved and authorized by the Board of Directors:
/s/ Peter M. D. Bradshaw	/s/ James S. Gilbert
Peter M.D. Bradshaw, Director	James S. Gilbert, Director

See notes to the condensed consolidated interim financial statements

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FPX NICKEL CORP.

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss

(Unaudited)

(Stated in Canadian dollars)

	Three Months	Nine Months
	Ended September 30	Ended September 30
	2021	2020		2021	2020
	$	$		$	$
EXPENSES
Accounting, legal and audit	14,818	922		35,607	3,217
Depreciation (note 9)	12,672	7,999		28,671	23,998
Foreign exchange loss (gain)	(65)	(75,923)		(7,029)	116,242
General exploration	17,331	16		22,234	1,315
Insurance	4,740	3,444		12,627	10,024
Interest expense (notes 9 and 10)	2,124	139,463		30,666	418,861
Management fees and salaries (note 13)	128,695	64,918		393,009	212,624
Office and administration	20,540	3,298		35,060	13,585
Share-based compensation (notes 11 and 13)	94,507	95,149		2,276,855	531,086
Travel, promotion & communications	184,254	86,918		397,774	198,113
Trust and filing fees	34,138		4,547		77,243		24,759
Loss before other items	(513,754)	(330,751)		(3,302,717)	(1,553,824)
OTHER ITEMS
Loss on sale of marketable securities	-	-		-	(37,131)
Gain on settlement of CEBA loan
(note 14)	-	-		20,000	-
Gain on lease modification	4,118	-		4,118	-
Interest income	32,836		3,129		78,706		15,773
	36,954		3,129	102,824	(21,358)
Net loss for the period	(476,800)		(327,622)		(3,199,893)		(1,575,182)
Other comprehensive loss
Items that may be reclassified to income:
Unrealized gain (loss) on marketable
securities	-		-		-		(6,521)
Comprehensive loss for the period	(476,800)	(327,622)		(3,199,893)	(1,581,703)
Basic and diluted loss per share (note 12)	(0.002)	(0.002)		(0.016)	(0.010)
Weighted average number of
common shares outstanding	213,557,863	163,767,439		203,202,081	161,247,162

See notes to the condensed consolidated interim financial statements

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FPX NICKEL CORP.

Condensed Consolidated Interim Statements of Changes in Equity

(Unaudited)

(Stated in Canadian dollars)

					Accumulated
	Share Capital	Other		Other
	Number		Equity		Comprehensive
	of Shares	Amount	Reserve	Deficit	Loss	Total
	#	$	$	$	$	$
Balance, December 31, 2019	154,728,672	33,476,916	6,446,378	(36,586,200)	(29,044)	3,308,050
Private placement	8,333,332	1,500,000	-	-	-	1,500,000
Share issue costs	-	(31,906)	-	-	-	(31,906)
Options exercised	1,200,000	237,910	(92,910)	-	-	145,000
Share-based compensation	-	-	531,086	-	-	531,086
Adjustment on sale of marketable
securities	-	-	-	-	35,565	35,565
Net loss for the period	-	-	-	(1,575,182)	-	(1,575,182)
Other comprehensive loss	-	-	-	-	(6,521)	(6,521)
Balance, September 30, 2020	164,262,004	35,182,920	6,884,555	(38,161,382)	-	3,906,092
Private placement	8,963,636	4,930,000	-	-	-	4,930,000
Share issue costs	-	(186,576)	-	-	-	(186,576)
Options exercised	-	-	-	-	-	-
Shares issued in debt settlement	7,750,037	4,262,521	-	-	-	4,262,521
Net loss for the period	-	-	-	(235,927)	-	(235,927)
Balance, December 31, 2020	180,975,677	44,188,865	6,884,555	(38,397,309)	-	12,676,111
Public offering	24,769,800	16,100,370	-	-	-	16,100,370
Shares issued in debt settlement	5,312,386	3,453,051	-	-	-	3,453,051
Share issue costs	-	(1,848,521)	567,172	-	-	(1,281,349)
Options exercised	2,500,000	562,700	(225,200)	-	-	337,500
Share-based compensation	-	-	2,276,855	-	-	2,276,855
Net loss for the period	-	-	-	(3,199,893)	-	(3,199,893)
Balance, September 30, 2021	213,557,863	62,456,465	9,503,382	(41,597,202)	-	30,362,645

See notes to the condensed consolidated interim financial statement

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FPX NICKEL CORP.

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited)

(Stated in Canadian dollars)

		Three Months		Nine Months
		Ended September 30		Ended September 30
		2021	2020		2021	2020
		$	$	$	$
Cash provided by (used for):
Operating activities
Net loss for the period	(476,800)	(327,622)	(3,199,893)	(1,575,182)
Add items not involving cash:
Depreciation	12,672	7,999	28,671	23,998
Share-based compensation	94,507	95,149	2,276,855	531,086
Accrued interest included in loan payable	-	65,198	26,713	268,429
Loss on sale of marketable securities	-	-	-	37,131
Loss on settlement of loan payable	-	-	2,759	-
Foreign exchange loss (gain) on loan payable	-	(82,047)	(11,663)	147,062
Gain on lease modification	(4,118)	-	(4,118)	-
Gain on settlement of CEBA loan	-		-		(20,000)		-
		(373,739)	(241,323)	(900,676)	(567,476)
Changes in non-cash working capital components:
Amounts receivable	(128,961)	(15,542)	(186,454)	(26,425)
Prepaid expenses	21,809	34,510	(45,598)	22,967
Accounts payable and accrued liabilities	(5,114)	7,723	625	25,289
Current portion of lease liability	-	(1,389)	-	(4,673)
Interest payable	-		(1,447)		-		1,750
		(486,005)	(217,468)	(1,132,103)	(548,568)
Financing activities *
Cash proceeds from shares issued	-	120,000	16,437,870	1,645,000
Share issue costs	-	-	(1,281,349)	(31,906)
Repayment of lease liability	(12,285)	(7,577)	(28,661)	(21,384)
Proceeds from CEBA loan	-	-	20,000	-
Repayment of CEBA loan	-	-	(40,000)	-
Loan payments	-	-	-	(724,743)
Proceeds from sale of marketable securities	-		-		-		19,693
		(12,285)	112,423	15,107,860	886,660
Investing activities *
Reclamation deposit	(207)	(444)	(309)	(547)
Exploration and evaluation expenditures	(2,593,861)	(274,340)	(3,672,323)	(672,960)
Advance payment to mining consultants	(436,945)		-		(684,683)		-
		(3,031,013)		(274,784)		(4,357,315)		(673,507)
Net cash provided (used) during period	(3,529,303)	(379,829)	9,618,442	(335,415)
Cash - beginning of period	18,982,819		1,772,859		5,835,074		1,728,445
Cash - end of period		15,453,516		1,393,030		15,453,516		1,393,030

• Supplemental disclosure of non-cash financing and investing activities

Interest received		32,998	3,479	78,823	15,954
Accounts payable related to mineral properties	71,031	22,304	71,031	22,304
BC mineral exploration tax credits receivable	37,386	-	37,386	-
included in exploration and evaluation assests
Also see Notes 9 and 10.	See notes to the condensed consolidated interim financial statements

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