NORONT RESOURCES LTD. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND MARCH 31, 2020
(EXPRESSED IN CANADIAN DOLLARS)
Notice of No Auditor Review of Interim Financial Statements
The following unaudited condensed consolidated interim financial statements of Noront Resources Ltd. have been prepared by and are the responsibility of management of Noront Resources Ltd. Noront's independent auditor has not reviewed these unaudited condensed consolidated interim financial statements.
Noront Resources Ltd.
Consolidated Statements of Financial Position (Expressed in Canadian dollars)
(Unaudited)
As at | As at | ||||
March 31, | December 31, | ||||
Note | 2021 | 2020 | |||
Assets | |||||
Current Assets | |||||
Cash and cash equivalents | 7 | $ | 762,716 | $ | 1,363,077 |
Taxes and other receivables | 13,549 | 17,515 | |||
Supplies inventory | 28,898 | 28,898 | |||
Prepaid expenses | 28,689 | 27,017 | |||
Total Current Assets | $ | 833,852 | $ | 1,436,507 | |
Non-Current Assets | |||||
Equipment | 8 | 691,597 | 964,849 | ||
Mineral properties | 9 | 25,418,065 | 25,418,065 | ||
Investments | 5 | 315,600 | 290,600 | ||
Right-of-use asset | 10a | 193,869 | 221,380 | ||
Option to lease | 114,396 | 192,163 | |||
Total Non-Current Assets | $ | 26,733,527 | $ | 27,087,057 | |
Total Assets | $ | 27,567,379 | $ | 28,523,564 | |
Liabilities and Shareholders' Deficit | |||||
Current Liabilities | |||||
Accounts payable and accrued liabilities | 11 | $ | 544,090 | $ | 546,251 |
Loan Facilities - due to Resource Capital Funds V L.P. | 12a | 18,019,474 | 17,844,535 | ||
Repayment option | 12b | 7,073,467 | 4,480,106 | ||
Short-term portion of lease obligation | 10b | 140,538 | 137,965 | ||
Total Current Liabilities | $ | 25,777,569 | $ | 23,008,857 | |
Non-Current Liabilities | |||||
Provision for environmental obligations | 13 | 1,891,207 | 2,106,601 | ||
Loan Facilities - due to Resource Capital Funds V L.P. | 12a | - | - | ||
Loan Facilities - due to Franco-Nevada Corporation | 12c | 42,682,036 | 41,647,193 | ||
Long-term portion of lease obligation | 10b | 119,415 | 155,529 | ||
Total Non-Current Liabilities | $ | 44,692,658 | $ | 43,909,323 | |
Total Liabilities | $ | 70,470,227 | $ | 66,918,180 | |
Shareholders' Deficit | |||||
Capital stock | 14b | $ | 219,916,281 | $ | 219,495,789 |
Warrants | 14d | 639,832 | 639,832 | ||
Contributed surplus | 40,632,520 | 40,373,492 | |||
Deficit | (304,091,481) | (298,903,729) | |||
Total Shareholders' Deficit | $ | (42,902,848) | $ | (38,394,616) | |
Total Liabilities and Shareholders' Deficit | $ | 27,567,379 | $ | 28,523,564 |
Nature of Business and Going Concern (Note 1) | ||
Commitments and Contingencies (Note 17) | ||
Approved on behalf of the Board of Directors: | (Signed) "Paul Parisotto" | (Signed) "John Pollesel" |
Director | Director |
The accompanying notes are an integral part of these consolidated financial statements.
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Noront Resources Ltd.
Consolidated Statements of Loss and Comprehensive Loss (Expressed in Canadian dollars)
(Unaudited)
Three Months Ended | |||||||
March 31, | March 31, | ||||||
Note | 2021 | 2020 | |||||
Expenses | |||||||
Development and exploration expenditures | 19a | $ | 320,786 | $ | 1,519,015 | ||
Office and general | 19b | 475,477 | 964,436 | ||||
Amortization | 154,256 | 83,394 | |||||
Share-based compensation | 14c, e | 296,822 | 481,964 | ||||
Loss before finance items and other items | $ | (1,247,341) | $ | (3,048,809) | |||
Interest income and other income | 201,343 | 17,301 | |||||
Finance expense | (1,197,605) | (1,246,424) | |||||
Flow-through share premium | - | 415,019 | |||||
Accretion expense | (1,159,986) | (1,074,617) | |||||
Re-measurement of repayment option | 12b | (2,593,361) | 1,921,307 | ||||
Foreign exchange gain | 762,265 | (5,015,760) | |||||
Net loss | $ | (5,234,685) | $ | (8,031,983) | |||
Other comprehensive income (loss) | |||||||
Changes in fair value of investments | 25,000 | - | |||||
in equity securities | |||||||
Comprehensive loss | $ | (5,209,685) | $ | (8,031,983) | |||
Loss per share - basic and diluted | 16 | $ | (0.01) | $ | (0.02) |
The accompanying notes are an integral part of these consolidated financial statements.
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Noront Resources Ltd.
Consolidated Statements of Changes in Equity
(Expressed in Canadian dollars, unless otherwise indicated) (Unaudited)
Common | Capital Stock | Warrants | Contributed | Deficit | Total | ||||||
Shares | Surplus | ||||||||||
Balance, December 31, 2019 | 407,059,728 | $ | 217,826,449 | $ | 2,038,767 | $ | 38,196,321 | $ | (285,006,559) | $ | (26,945,022) |
Issuance of interest shares | 2,598,991 | 391,668 | - | - | - | 391,668 | |||||
Share-based compensation | - | - | - | 481,964 | - | 481,964 | |||||
Exercise of RSU | 165,375 | 40,646 | - | (40,646) | - | - | |||||
Net loss for the period | - | - | - | - | (8,031,983) | (8,031,983) | |||||
Balance, March 31, 2020 | 409,824,094 | $ | 218,258,763 | $ | 2,038,767 | $ | 38,637,639 | $ | (293,038,542) | (34,103,373) | |
Common | Capital Stock | Warrants | Contributed | Deficit | Total | ||||||
Shares | Surplus | ||||||||||
Balance, December 31, 2020 | 417,512,534 | $ | 219,495,789 | $ | 639,832 | $ | 40,373,492 | $ | (298,903,729) | $ | (38,394,616) |
Opening balance adjustment | 21,933 | 21,933 | |||||||||
Issuance of interest shares (Note 12(a),14(b) | 1,994,257 | 382,698 | - | - | - | 382,698 | |||||
Share-based compensation (Note 14c,e) | 296,822 | 296,822 | |||||||||
Exercise of RSU | 236,210 | 37,794 | - | (37,794) | - | - | |||||
Net loss for the period | (5,234,685) | (5,234,685) | |||||||||
Other comprehensive income (loss) | 25,000 | 25,000 | |||||||||
Balance, March 31, 2021 | 419,743,001 | $ | 219,916,281 | $ | 639,832 | $ | 40,632,520 | $ | (304,091,481) | $ | (42,902,848) |
The accompanying notes are an integral part of these consolidated financial statements.
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Noront Resources Ltd.
Consolidated Statements of Cash Flows (Expressed in Canadian dollars) (Unaudited)
Three Months Ended | |||||
March 31, | March 31, | ||||
Note | 2021 | 2020 | |||
Operating activities | |||||
Net loss for the period | $ | (5,234,685) | $ | (8,031,983) | |
Amortization | 154,256 | 83,394 | |||
Share-based compensation | 14c, e | 296,822 | 481,964 | ||
Accretion expense | 1,159,986 | 1,074,617 | |||
Flow-through share premium | - | (415,019) | |||
Issuance of interest shares | 382,698 | 391,668 | |||
Re-measurement of repayment option | 2,593,361 | (1,921,307) | |||
Accrued interest on long term debt | 12c | 821,118 | 813,812 | ||
Unrealized foreign exchange (gain) loss | (762,365) | 5,015,044 | |||
Net change in non-cash working capital: | |||||
Taxes and other receivables | 3,966 | (17,709) | |||
Supplies inventory | - | 37,712 | |||
Prepaid expenses | (1,672) | (263,490) | |||
Accounts payable and accrued liabilities | 19,771 | 679,006 | |||
Net cash used in operating activities | $ | (566,744) | $ | (2,072,291) | |
Financing activities | |||||
Lease payments | (33,541) | (29,946) | |||
Net cash provided by (used in) financing activities | $ | (33,541) | $ | (29,946) | |
Change in cash and cash equivalents | (600,285) | (2,102,237) | |||
Effect of foreign exchange rates on cash and cash equivalents | (76) | 197 | |||
Cash and cash equivalents, beginning of period | 1,363,077 | 7,331,777 | |||
Cash and cash equivalents, end of period | $ | 762,716 | $ | 5,229,737 | |
The accompanying notes are an integral part of these consolidated financial statements.
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Noront Resources Ltd. published this content on 27 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 June 2021 19:37:05 UTC.
