NV GOLD CORPORATION
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
SIX MONTHS ENDED FEBRUARY 29, 2024 and 2023
(Expressed in Canadian Dollars)
NOTICE OF NO AUDITOR REVIEW OF
CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the condensed consolidated interim financial statements, they must be accompanied by a notice indicating that an auditor has not reviewed the financial statements.
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 independent auditor has not performed a review of these condensed consolidated interim financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of condensed consolidated interim financial statements by an entity's auditor.
NV GOLD CORPORATION
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited - Prepared by Management)
(Expressed in Canadian Dollars, unless otherwise specified)
AS AT
February 29, | August 31, | |||||||||
2024 | 2023 | |||||||||
ASSETS | ||||||||||
Current | ||||||||||
Cash | $ | 47,556 | $ | 56,814 | ||||||
Accounts receivable | 4,962 | 85,815 | ||||||||
Prepaid expenses | 44,300 | 143,575 | ||||||||
96,818 | 286,204 | |||||||||
Reclamation bonds (Note 5) | 114,289 | 113,961 | ||||||||
Right of use asset (Note 9) | 35,681 | 53,105 | ||||||||
Exploration advances (Note 6) | 3,257 | 3,161 | ||||||||
Exploration and evaluation assets (Note 6) | 3,309,035 | 3,219,602 | ||||||||
$ | 3,559,080 | $ | 3,676,033 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Current | ||||||||||
Accounts payable and accrued liabilities (Note 7) | $ | 27,947 | $ | 38,062 | ||||||
Due to related parties (Note 10) | 14,623 | 3,000 | ||||||||
Current portion of lease liability (Note 9) | 19,704 | 37,188 | ||||||||
Loans payable to related party (Note 10) | 504,484 | 270,371 | ||||||||
566,758 | 348,621 | |||||||||
Lease liability (Note 9) | 15,977 | 15,917 | ||||||||
582,735 | 364,538 | |||||||||
Shareholders' equity | ||||||||||
Share capital (Note 8) | 23,773,351 | 23,773,351 | ||||||||
Share-based payments reserve (Note 8) | 3,785,619 | 3,785,373 | ||||||||
Deficit | (24,582,625) | (24,247,229) | ||||||||
2,976,345 | 3,311,495 | |||||||||
$ | 3,559,080 | $ | 3,676,033 | |||||||
Nature of operations (Note 1) | ||||||||||
Basis of presentation (Note 2) | ||||||||||
Events subsequent to the reporting period (Note 15) | ||||||||||
Approved on behalf of the Board | ||||||||||
On April 11, 2024 | ||||||||||
"John Watson" | Director | "Alfred Stewart" | Director |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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NV GOLD CORPORATION
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Unaudited - Prepared by Management)
(Expressed in Canadian Dollars, unless otherwise specified)
Three Months | Three Months | Six Months | Six Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
February 29, | February 28, | February 29, | February 28, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
EXPENSES | |||||||||||||||||
Advertising and promotion | $ | 51,812 | $ | 65,635 | $ | 131,714 | $ | 112,703 | |||||||||
Bank charges and interest | 1,094 | 1,354 | 2,348 | 2,976 | |||||||||||||
Consulting (Note 10) | - | 88,721 | - | 178,036 | |||||||||||||
Insurance | 8,345 | 7,753 | 16,691 | 15,507 | |||||||||||||
Loan interest (Note 10) | 12,877 | - | 24,324 | - | |||||||||||||
Office and general | 2,394 | 2,627 | 5,111 | 6,418 | |||||||||||||
Professional fees (Note 10) | 36,354 | 52,865 | 50,497 | 80,160 | |||||||||||||
Property investigation (recovery) (Note 10) | 29,222 | (635) | 42,082 | 455 | |||||||||||||
Registration and filing | 18,769 | 16,034 | 24,307 | 21,296 | |||||||||||||
Shareholder costs | 15,405 | 8,207 | 22,871 | 13,989 | |||||||||||||
Share-based compensation (Notes 8, 10) | - | 9,797 | 246 | 54,528 | |||||||||||||
Transfer agent | 3,698 | 4,040 | 3,886 | 5,271 | |||||||||||||
Travel and related | 6 | 253 | 666 | 7,559 | |||||||||||||
(179,976) | (256,651) | (324,743) | (498,898) | ||||||||||||||
OTHER INCOME (EXPENSES) | |||||||||||||||||
Foreign exchange (loss) gain | (3,784) | 11,482 | (10,723) | 45,480 | |||||||||||||
Interest income | 8 | 3,160 | 70 | 8,355 | |||||||||||||
Other income | - | - | - | 63,850 | |||||||||||||
Gain on recovery of exploration and | |||||||||||||||||
evaluation costs (Note 6) | - | - | - | 12,082 | |||||||||||||
(3,776) | 14,642 | (10,653) | 129,767 | ||||||||||||||
Loss and comprehensive loss for the period | $ | (183,752) | $ | (242,009) | $ | (335,396) | $ | (369,131) | |||||||||
Basic and diluted loss per common share | $ | (0.04) | $ | (0.03) | $ | (0.04) | $ | (0.05) | |||||||||
Weighted average number of shares outstanding | |||||||||||||||||
Basic and diluted | 8,874,546 | 7,993,813 | 8,874,546 | 7,993,813 | |||||||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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NV GOLD CORPORATION
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited - Prepared by Management)
(Expressed in Canadian Dollars, unless otherwise specified)
Share Capital | Share-based | Total | |||||||
Payments | Shareholders' | ||||||||
No. of Shares | Amount | Reserve | Deficit | Equity | |||||
Balance, August 31, 2022 | 7,993,813 | $ | 23,274,276 | $ | 3,655,935 | $ | (21,506,120) | $ | 5,424,091 |
Share-based compensation | - | - | 54,528 | - | 54,528 | ||||
Loss for the period | - | - | - | (369,131) | (369,131) | ||||
Balance, February 28, 2023 | 7,993,813 | $ | 23,274,276 | $ | 3,710,463 | $ | (21,875,251) | $ | 5,109,488 |
Private placement | 880,733 | 528,440 | - | - | 528,440 | ||||
Share issue costs | - | (29,365) | - | - | (29,365) | ||||
Share-based compensation | - | - | 74,910 | - | 74,910 | ||||
Loss for the period | - | - | - | (2,371,978) | (2,371,978) | ||||
Balance, August 31, 2023 | 8,874,546 | $ | 23,773,351 | $ | 3,785,373 | $ | (24,247,229) | $ | 3,311,495 |
Share-based compensation | - | - | 246 | - | 246 | ||||
Loss for the period | - | - | - | (335,396) | (335,396) | ||||
Balance, February 29, 2024 | 8,874,546 | $ | 23,773,351 | $ | 3,785,619 | $ | (24,582,625) | $ | 2,976,345 |
On February 28, 2024, the Company completed a 10 to 1 share consolidation. All references to the number of shares and per share amounts have been retroactively restated to reflect the consolidation.
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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NV GOLD CORPORATION
CONDENSED COSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited - Prepared by Management)
(Expressed in Canadian Dollars, unless otherwise specified)
Six Month | Six Month | |||||||
Period Ended | Period Ended | |||||||
February 29, | February 28, | |||||||
2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Loss for the period | $ | (335,396) | $ | (369,131) | ||||
Items not affecting cash | ||||||||
Foreign exchange on reclamation bonds | (328) | (14,728) | ||||||
Foreign exchange on loans payable | 7,459 | - | ||||||
Share-based compensation | 246 | 54,528 | ||||||
Loan interest | 24,324 | - | ||||||
Change in non-cash working capital items: | ||||||||
Accounts receivable | 80,853 | (4,516) | ||||||
Prepaid expenses | 99,275 | (34,602) | ||||||
Accounts payable and accrued liabilities | (10,115) | (3,360) | ||||||
Due to related parties | 11,623 | (22,310) | ||||||
Net cash provided by (used in) operating activities | 122,059 | (394,119) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Exploration advances | (3,262) | - | ||||||
Exploration and evaluation assets | (67,144) | (411,929) | ||||||
Net cash used in investing activities | (70,406) | (411,929) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Loans payable to related party | 202,330 | - | ||||||
Payments of lease liability | (19,123) | - | ||||||
Net cash provided by financing activities | 183,207 | - | ||||||
Change in cash during the period | (9,258) | (806,048) | ||||||
Cash, beginning of period | 56,814 | 1,291,948 | ||||||
Cash, end of period | $ | 47,556 | $ | 485,900 | ||||
Supplemental disclosures with respect to cash flows (Note 13) |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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NV GOLD CORPORATION
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Prepared by Management)
(Expressed in Canadian Dollars, unless otherwise specified) FEBRUARY 29, 2024
-
NATURE OF OPERATIONS
The Company was incorporated under the laws of the province of British Columbia on May 23, 2007. The Company is engaged in the identification, acquisition and exploration of mineral properties. The Company began trading on the
TSX Venture Exchange ("TSX-V") on November 26, 2009 under the trading symbol NVX. The Company began trading in the United States on May 24, 2018 on the OTC Markets under the symbol NVGLF and on the Frankfurt
Stock Exchange ("FSE") on July 1, 2021 under the symbol 8NV.
On February 28, 2024, the Company completed a 10 to 1 share consolidation. All references to the number of shares and per share amounts have been retroactively restated to reflect the consolidation.
The address of the Company's corporate office is located at Suite 250 - 750 West Pender Street, Vancouver, British Columbia, Canada, V6C 2T7. The registered office is located at 10th Floor, 595 Howe Street, Vancouver, British Columbia, Canada, V6C 2T5. - BASIS OF PRESENTATION
- Statement of Compliance
The condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting under International Financial Reporting Standards ("IFRS"), as issued by International Accounting Standards Board ("IASB").
These condensed consolidated interim financial statements follow the same accounting policies and methods of application as the Company's most recent annual financial statements but do not contain all of the information required for full annual financial statements. Accordingly, these condensed consolidated interim financial statements should be read in conjunction with the Company's annual financial statements for the year ended August 31, 2023.
b) Basis of Measurement
These condensed consolidated interim financial statements have been prepared on a historical cost basis except for financial instruments classified as financial instruments at fair value through profit or loss, which are stated at their fair value. In addition, these condensed consolidated interim financial statements have been prepared using the accrual basis of accounting, except for cash flow information.
These condensed consolidated interim financial statements are presented in Canadian dollars, which is also the functional currency of the Company and its subsidiaries.
- Going Concern of Operations
The Company has not generated revenue from operations. The Company incurred a loss of $335,396 during the six month period ended February 29, 2024 and, as of that date the Company's deficit was $24,582,625. As the Company is in the exploration stage, the recoverability of the costs incurred to date on exploration properties 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 properties and upon future profitable production or proceeds from the disposition of the properties. The Company will periodically have to raise funds to continue operations and, although it has been successful in doing so in the past, there is no assurance it will be able to do so in the future. These material uncertainties may cast significant doubt about the Company's ability to continue as a going concern.
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NV GOLD CORPORATION
NOTES TO THE CONSENDED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Prepared by Management)
(Expressed in Canadian Dollars, unless otherwise specified) FEBRUARY 29, 2024
2. BASIS OF PRESENTATION (cont'd…)
- Going Concern of Operations (cont'd…)
February 29, | August 31, | |||
2024 | 2023 | |||
Working capital deficiency | $ | (469,940) | $ | (62,417) |
Deficit | (24,582,625) | (24,247,229) |
d) Reclassification
Certain comparative balances have been restated to conform to the current period's presentation.
3. SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation
These consolidated financial statements include the financial statements of the parent company, NV Gold Corporation, and its subsidiaries listed below:
Equity Interest
Nature of | February | August | ||
29, | 31, | |||
Jurisdiction | Operations | 2024 | 2023 | |
NV Gold Corporation (USA) Inc. ("NV Gold USA") | Nevada, USA | Exploration | 100% | 100% |
SwissGold Exploration AG ("SwissGold") | Switzerland | Exploration | 100% | 100% |
The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All inter-company balances and transactions have been eliminated upon consolidation.
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NV GOLD CORPORATION
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Prepared by Management)
(Expressed in Canadian Dollars, unless otherwise specified) FEBRUARY 29, 2024
3. SIGNIFICANT ACCOUNTING POLICIES (cont'd…)
Financial instruments Classification
The Company determines the classification of its financial instruments at initial recognition. Upon initial recognition, a financial asset is classified as measured at: amortized cost, fair value through profit and loss ("FVTPL"), or fair value through other comprehensive income (loss) ("FVOCI"). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial liability is classified as measured at amortized cost or FVTPL.
A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as
FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as FVTPL:
- it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
An equity investment that is held for trading is measured at FVTPL. For other equity investments that are not held for trading, the Company may irrevocably elect to designate them as FVOCI. This election is made on an investment-by- investment basis.
All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has elected to measure them at FVTPL.
The following table shows the classification of the Company's financial instruments:
Asset or Liability | Classification |
Cash | Amortized cost |
Accounts receivable | Amortized cost |
Accounts payable and accrued liabilities | Amortized cost |
Lease liability | Amortized cost |
Due to related parties | Amortized cost |
Loans payable to related party | Amortized cost |
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NV GOLD CORPORATION
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Prepared by Management)
(Expressed in Canadian Dollars, unless otherwise specified) FEBRUARY 29, 2024
3. SIGNIFICANT ACCOUNTING POLICIES (cont'd…)
Financial instruments (cont'd…)
Measurement Initial measurement
On initial recognition, all financial assets and financial liabilities are measured at fair value adjusted for directly attributable transaction costs except for financial assets and liabilities classified as FVTPL, in which case the transaction costs are expensed as incurred.
Subsequent measurement
The following accounting policies apply to the subsequent measurement of financial instruments:
Financial assets at FVTPL
These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.
Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income is calculated using the effective interest rate method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
Impairment of financial instruments
Impairment of financial assets at amortized cost: The Company assesses all information available, including on a forward-looking basis, the expected credit losses associated with its assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as the reporting date, with the risk of default as at the date of initial recognition, based on all information available, and reasonable and supportive forward-looking information
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NV Gold Corporation published this content on 11 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 20:15:38 UTC.