MIRASOL RESOURCES LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
September 30, 2023
(Unaudited - Expressed in Canadian Dollars)
NOTICE OF NO AUDITOR REVIEW OF
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
In accordance with National Instrument 51-102 Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these condensed consolidated interim financial statements they must be accompanied by a notice indicating that the condensed consolidated interim financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared by and are the responsibility of the Company's management.
The Company's auditors have not performed a review of these condensed consolidated interim financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.
Mirasol Resources Ltd.
Condensed Consolidated Interim Statements of Financial Position
As of September 30, 2023, and June 30, 2023
(Expressed in Canadian Funds, except where indicated)
ASSETS | September 30, | June 30, | ||
2023 | 2023 | |||
Current Assets | ||||
Cash and cash equivalents (Note 3) | $ | 6,303,703 | $ | 8,123,682 |
Prepaid, receivables and advances (Note 4) | 217,492 | 203,786 | ||
Current portion of lease receivable (Note 7) | 38,064 | 38,064 | ||
Due from JV partner | 23,726 | 16,693 | ||
Marketable securities (Note 5) | 83,024 | 155,669 | ||
Non-Current Assets | 6,666,009 | 8,537,894 | ||
Equipment | 116,198 | 116,596 | ||
Right-of-use assets (Note 6) | 41,159 | 46,966 | ||
Non-current portion of lease receivable (Note 7) | 15,287 | 22,618 | ||
Exploration and evaluation assets (Note 8) | 1,467,378 | 1,467,378 | ||
Total Assets | 1,640,022 | 1,653,558 | ||
$ | 8,306,031 | $ | 10,191,452 | |
LIABILITIES | ||||
Current Liabilities | ||||
Accounts payable and accrued liabilities | $ | 691,804 | $ | 744,547 |
Current portion of lease liabilities (Note 7) | 88,800 | 87,690 | ||
Long-Term Liabilities | 780,604 | 832,237 | ||
Non-current portion of lease liabilities (Note 7) | 35,991 | 53,115 | ||
Total Liabilities | $ | 816,595 | $ | 885,352 |
EQUITY | ||||
Share Capital (Note 10) | $ | 67,592,500 | $ | 67,592,500 |
Reserves | 19,677,813 | 19,578,061 | ||
Accumulated Other Comprehensive Loss | (34,054) | (29,756) | ||
Deficit | (79,746,823) | (77,834,705) | ||
7,489,436 | 9,306,100 | |||
Total Liabilities and Equity | $ | 8,306,031 | $ | 10,191,452 |
Nature of business (Note 1) Commitments (Note 12)
On Behalf of the Board:
- Patrick Evans "
- Nick DeMare "
- Director
- Director
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 3
Mirasol Resources Ltd.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
For the Three Months Ended September 30,
(Expressed in Canadian Funds, except where indicated)
2023 | 2022 | |||
Expenses | $ | |||
Exploration expenditures | 1,490,474 | $ | 837,125 | |
Business development | 62,409 | 45,856 | ||
Marketing and investor communications | 50,452 | 28,103 | ||
Management fees (Note 9a i) | 97,827 | 99,177 | ||
Office and miscellaneous | 60,980 | 40,950 | ||
Professional fees (Note 9b) | 85,691 | 19,158 | ||
Director fees (Note 9a iii) | 25,200 | 25,200 | ||
Travel | 11,878 | 5,556 | ||
Transfer agent and filing fees | 4,521 | 2,040 | ||
Share-basedpayments (Note 9a ii,10b ii,10c) | 99,752 | 91,126 | ||
Depreciation | 14,877 | 16,536 | ||
(2,004,061) | (1,210,827) |
Interest income Interest expense (Note 7) Foreign exchange (loss) gain
Unrealized loss on marketable securities fair value (Note 5) Other income
165,974 169,578
(5,076)(7,218)
(11,474) 270,689
(72,645) (311,338)
15,16413,119
91,943 134,830
Loss for the Period | $ | (1,912,118) | $ | (1,075,997) |
Other Comprehensive Loss | ||||
Items that will not be reclassified to profit and loss: | ||||
Exchange differences on translation of foreign operations | (4,298) | (12,056) | ||
Loss and Comprehensive Loss for the Period | $ | (1,916,416) | $ | (1,088,053) |
Loss per Share (Basic and Diluted) | $ | (0.03) | $ | (0.02) |
Weighted Average Number of Shares Outstanding | ||||
(Basic and Diluted) | 65,650,060 | 54,043,304 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 4
Mirasol Resources Ltd.
Condensed Consolidated Interim Statement of Changes in Equity
As at September 30
(Expressed in Canadian Funds, except where indicated)
Share Capital | Accumulated | ||||||
Number of | Common | Other | Total | ||||
Common | Shares | Comprehensive | |||||
Shares | Amount | Reserves | Loss | Deficit | Equity | ||
Balance - June 30, 2022 | 54,015,043 | $57,502,177 | $18,362,103 | $(24,558) | $(68,037,878) | $7,801,844 | |
Treasury shares repurchased (Note 9) | - | (13,650) | - | - | - | (13,650) | |
Shares issued for stock options exercised | 50,000 | 17,000 | - | - | - | 17,000 | |
Share-based payments (Note 9) | - | - | 91,126 | - | - | 91,126 | |
Foreign currency translation adjustment | - | - | - | (12,056) | - | (12,056) | |
Loss for the period | - | - | - | - | (1,075,997) | (1,075,997) | |
Balance - September 30, 2022 | 54,065,043 | $57,505,527 | $18,453,229 | $(36,614) | $(69,113,875) | $6,808,267 | |
Balance - June 30, 2023 | 65,650,060 | $67,592,500 | $19,578,061 | $(29,756) | $(77,834,705) | $9,306,100 | |
Share-based payments (Note 9) | - | - | 99,752 | - | - | 99,752 | |
Foreign currency translation adjustment | - | - | - | (4,298) | - | (4,298) | |
Loss for the period | - | - | - | - | (1,912,118) | (1,912,118) | |
Balance - September 30, 2023 | 65,650,060 | $67,592,500 | $19,677,813 | $(34,054) | $(79,746,823) | $7,489,436 | |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 5
Mirasol Resources Ltd.
Condensed Consolidated Interim Statement of Changes in Cash Flows
For the Three Months Ended September 30 (Expressed in Canadian Funds, except where indicated)
2023 | 2022 | |||
Operating Activities | ||||
Loss for the period | $ | (1,912,118) | $ | (1,075,997) |
Adjustments for: | ||||
Interest income | (165,974) | (172,703) | ||
Interest expense | 5,076 | 7,218 | ||
Depreciation | 14,877 | 16,536 | ||
Other income (expense) | 204 | 1,528 | ||
Share-based payments | 99,752 | 91,126 | ||
Unrealized loss on marketable securities fair value | 72,645 | 311,338 | ||
Unrealized foreign exchange | 9,584 | (277,151) | ||
Changes in non-cash working capital items: | (1,875,954) | (1,098,105) | ||
Receivables and advances | 37,624 | (15,905) | ||
Accounts payable and accrued liabilities | (52,743) | 73,920 | ||
Advance from joint venture partner | 7,033 | 65,993 | ||
Cash used in operating activities | (1,884,040) | (974,097) | ||
Investing Activities | ||||
Purchase of equipment | (8,672) | - | ||
Interest received | 112,255 | 155,437 | ||
Cash provided by investing activities | 103,583 | 155,437 | ||
Financing Activity | ||||
Lease payments | (11,575) | (11,733) | ||
Stock options exercised | - | 17,000 | ||
Treasury shares repurchased | - | (13,650) | ||
Cash used in operating activities | (11,575) | (8,383) | ||
Effect of Exchange Rate Change on Cash and Cash Equivalents | ||||
(27,947) | 254,841 | |||
Change in Cash and Cash Equivalents | (1,819,979) | (572,202) | ||
Cash and Cash Equivalents - Beginning of the period | 8,123,682 | 5,698,539 | ||
Cash and Cash Equivalents - End of the period | $ | 6,303,703 | $ | 5,126,337 |
Cash and Cash Equivalents Consist of: | ||||
Cash | $ | 1,257,703 | $ | 1,584,937 |
Cash equivalents | $ | 5,046,000 | $ | 3,541,400 |
$ | 6,303,703 | $ | 5,126,337 | |
Supplemental Schedule of Non-Cash Investing and Financing | ||||
Transactions: | ||||
Cash paid during the period for interest | $ | 5,076 | $ | 7,218 |
Cash paid during the period for income taxes | $ | - | $ | - |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 6
Mirasol Resources Ltd.
Notes to the Condensed Consolidated Interim Financial Statements
For the Three Months Ended September 30, 2023
(Expressed in Canadian Funds, except where indicated)
-
Nature of Business
Mirasol Resources Ltd. ("Mirasol" or the "Company") is incorporated under the laws of the Province of British Columbia, Canada. The Company's corporate registered and records office is located at 400 - 725 Granville Street, Vancouver, British Columbia and the head office is located at 1150-355 Burrard Street, Vancouver, British Columbia.
Mirasol engages in the acquisition and exploration of mineral properties, principally located in Chile and Argentina, with the objective of identifying mineralized deposits economically worthy of subsequent development, mining or sale.
The business of mining and exploration involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The Company has no source of revenue and has significant cash requirements to meet its administrative overhead and maintain its exploration and evaluation assets. The recovery of the Company's exploration and evaluation assets is dependent on the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development of these properties, and future profitable production or proceeds from disposition of exploration and evaluation assets. While the Company has been successful in the past with its financing efforts, there can be no assurance that it will be able to do so in the future.
Recent global issues, including the ongoing COVID-19 pandemic and geo-political conflicts have adversely affected workplaces, economies, supply chains, and financial markets globally. It is not possible for the Company to predict the duration or magnitude of the adverse results of these issues and their effects on the Company's business or results of operations this time.
Management estimates that the Company has sufficient working capital to maintain its operations and activities for at least the next twelve months. - Basis of Presentation Statement of compliance
The condensed consolidated interim financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). These condensed consolidated interim financial statements were prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements. These condensed consolidated interim financial statements should be read in conjunction with the Company's annual consolidated financial statements for the year ended June 30, 2023.
The Board of Directors approved the condensed consolidated interim financial statements on November 28th, 2023.
Basis of measurement
These condensed consolidated interim financial statements have been prepared on a historical cost basis. Financial instruments classified as financial instruments at fair value through profit or loss are stated at their fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting except for the cash flow information.
Page 7
Mirasol Resources Ltd.
Notes to the Condensed Consolidated Interim Financial Statements
For the Three Months Ended September 30, 2023
(Expressed in Canadian Funds, except where indicated)
Significant Accounting Estimates and Judgments
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, profit and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended June 30, 2023.
Recent Accounting Pronouncements and Adoptions
Recently adopted accounting standards
Classification of liabilities as current or non-current (to IAS 1)
The IASB has published Classification of Liabilities as Current or Non-Current(Amendments to IAS 1) which clarified the guidance on whether a liability should be classified as either current or non-current.The amendments:
- Clarify that the classification of liabilities as current or non-current should only be based on rights that are in place "at the end of the reporting period";
- Clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and
- Make clear that settlement includes transfers to the counterparty of cash, equity instruments, other assets or services that result in extinguishment of the liability.
This amendment was effective for annual periods beginning on or after January 1, 2023. The adoption of the amendment did not have a material impact on the Company's financial statements.
Definition of Accounting Estimates (Amendments to IAS 8)
The IASB proposed clarifying the definitions of "accounting policies" and "accounting estimates" in (Amendments to IAS 8), by making those two definitions more distinct and concise. The IASB also proposed clarifying, through additional guidance and examples, how accounting policies and accounting estimates relate to each other and how companies decide whether a change in valuation technique or a change in estimation technique is a change in an accounting estimate.
This amendment was effective for annual periods beginning on or after January 1, 2023. The adoption of the amendment did not have a material impact on the Company's financial statements.
Insurance contracts IFRS 17
IFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts.
IFRS 17 supersedes IFRS 4 and applies to annual reporting periods beginning on or after 1 January 2023. The adoption of the amendment did not have a material impact on the Company's financial statements.
Page 8
Mirasol Resources Ltd.
Notes to the Condensed Consolidated Interim Financial Statements
For the Three Months Ended September 30, 2023
(Expressed in Canadian Funds, except where indicated)
3. Cash and Cash Equivalents
Cash and cash equivalents comprise of cash and short-term redeemable Guaranteed Investment Certificates ("GIC") placed with major Canadian financial institutions. Maturity dates of these GIC's are within one year.
4. Prepaid expenses, Receivables and Advances | September 30, | June 30, | |||
2023 | 2023 | ||||
Goods and services tax receivable | $ | 6,695 | $ | 6,848 | |
Interest receivable | 69,658 | 18,123 | |||
Other receivable and advances | 123,970 | ||||
Prepaid expenses | 141,139 | 54,845 | |||
$ | 217,492 | $ | 203,786 | ||
5. Marketable Securities | |||
Common shares: | |||
Balance June 30, 2022 and 2023 | 1,037,794 | ||
Additions | - | ||
Balance September 30, 2023 | 1,037,794 | ||
Fair value change: | |||
At June 30, 2022 | $ | 726,456 | |
Additions | - | ||
Fair value change | (570,787) | ||
At June 30, 2023 | $ | 155,669 | |
Additions | - | ||
Fair value change | (72,645) | ||
At September 30, 2023 | $ | 83,024 |
The Company holds 1,037,794 common shares (June 30, 2023 - 10,377,943) from Silver Sands Resources Corp. ("SS") that were received as partial consideration on an option agreement. In September 2023, SS completed a consolidation of 10 old shares for one new share.
As at September 30, 2023, the market price of the shares was $0.08 per share (September 30, 2022 - $0.04). Accordingly, the Company recorded an unrealized fair value loss of $72,645 (2022 - $311,338) in the condensed consolidated interim financial statements.
Page 9
Mirasol Resources Ltd.
Notes to the Condensed Consolidated Interim Financial Statements
For the Three Months Ended September 30, 2023
(Expressed in Canadian Funds, except where indicated)
6. Right of Use of Assets and Lease Liabilities Right of Use Assets
Cost: | ||
At June 30, 2022 and 2023 | $ | 220,739 |
Additions | - | |
At September 30, 2023 | $ | 220,739 |
Depreciation: | ||
At June 30, 2022 | $ | 150,545 |
Charge for the year | 23,228 | |
At June 30, 2023 | 173,773 | |
Charge for the period | 5,807 | |
At September 30, 2023 | $ | 179,580 |
Net Book Value: | ||
At June 30, 2023 | $ | 46,966 |
At September 30, 2023 | $ | 41,159 |
Depreciation of right-of-use assets is calculated using the straight-line method of the remaining lease term.
7. Lease Liabilities and Lease Receivable Lease liabilities
September 30, | June 30, | |||
2023 | 2023 | |||
Beginning balance | $ | 140,805 | $ | 197,188 |
Lease payments made | (21,091) | (82,141) | ||
Interest expense | 5,077 | 25,758 | ||
$ | 124,791 | $ | 140,805 | |
Less: current portion | (88,800) | (87,690) | ||
Non-current portion | $ | 35,991 | $ | 53,115 |
The following are the minimum lease payments for the remaining of the lease:
Period
In 1 year
Second year
Amount
$88,800
$51,800
Page 10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Mirasol Resources Ltd. published this content on 28 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 November 2023 03:59:17 UTC.