CONDENSED INTERIM FINANCIAL STATEMENTS OF
PROBE METALS INC.
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2021
(EXPRESSED IN CANADIAN DOLLARS)
(UNAUDITED)
NOTICE TO READER
The accompanying unaudited condensed interim financial statements of Probe Metals Inc. (the "Company") have been prepared by, and are the responsibility of management. The unaudited condensed interim financial statements have not been reviewed by the Company's auditors.
Probe Metals Inc.
Condensed Interim Statements of Financial Position (Expressed in Canadian Dollars)
(Unaudited)
As at | As at | |||
September 30, | December 31, | |||
2021 | 2020 | |||
ASSETS | ||||
Current assets | $ | 25,375,655 | ||
Cash | $ | 30,739,058 | ||
Trade accounts receivable and other receivables (note 3) | 1,102,656 | 827,983 | ||
Marketable securities (note 4) | 3,318,935 | 3,823,240 | ||
Prepaid expenses | 104,511 | 105,252 | ||
Income tax receivable | - | 862,322 | ||
Total current assets | 29,901,757 | 36,357,855 | ||
Non-current assets | 413,050 | |||
Reclamation bonds (note 5) | 413,050 | |||
Property and equipment (note 6) | 523,182 | 588,870 | ||
Rights-of-use asset (note 7) | 136,940 | 186,239 | ||
Total non-current assets | 1,073,172 | 1,188,159 | ||
Total assets | $ | 30,974,929 | $ | 37,546,014 |
LIABILITIES AND EQUITY | ||||
Current liabilities | $ | 613,891 | ||
Amounts payable and other liabilities (notes 8 and 18) | $ | 981,051 | ||
Current portion of lease liability (note 9) | 82,407 | 60,196 | ||
Flow-through share liability (note 10) | 841,352 | 3,954,139 | ||
Total current liabilities | 1,537,650 | 4,995,386 | ||
Non-current liabilities | 138,431 | |||
Lease liability (note 9) | 203,553 | |||
Restoration liabilities (note 5) | 997,068 | 889,239 | ||
Total non-current liabilities | 1,135,499 | 1,092,792 | ||
Total liabilities | 2,673,149 | 6,088,178 | ||
Equity | 114,436,399 | |||
Share capital (note 11) | 106,772,946 | |||
Warrants (note 12) | 2,275,965 | 2,281,758 | ||
Contributed surplus (notes 13 and 14) | 6,453,181 | 9,222,400 | ||
Accumulated deficit | (94,863,765) | (86,819,268) | ||
Total equity | 28,301,780 | 31,457,836 | ||
Total liabilities and equity | $ | 30,974,929 | $ | 37,546,014 |
The accompanying notes are an integral part of these unaudited condensed interim financial statements.
Nature of operations (note 1)
Commitments (note 19)
Subsequent event (note 21)
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Probe Metals Inc.
Condensed Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars)
(Unaudited)
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Operating expenses | $ | 3,244,803 | $ | 8,276,072 | ||||
Exploration and evaluation expenditures (note 16) | $ | 3,943,916 | $ | 11,512,899 | ||||
General and administrative expenses (note 17) | 1,297,392 | 1,146,514 | 3,803,659 | 4,203,591 | ||||
Operating loss before interest and other income, | ||||||||
accretion expense, premium on flow-through shares, | ||||||||
realized (loss) gain on sale of marketable securities, | ||||||||
and unrealized (loss) gain on marketable securities | (4,542,195) | (5,090,430) | (12,079,731) | (15,716,490) | ||||
Interest and other income | 53,712 | 45,192 | 140,215 | 276,880 | ||||
Accretion expense (notes 5 and 9) | (28,137) | (31,906) | (88,069) | (96,215) | ||||
Premium on flow-through shares (note 10) | 1,091,259 | 1,718,691 | 3,112,787 | 3,966,762 | ||||
Realized (loss) gain on sale of marketable | - | 2,871,131 | ||||||
securities (note 4) | (9,825) | (9,825) | ||||||
Unrealized (loss) gain on marketable | (571,125) | (2,224,457) | ||||||
securities (note 4) | 609,418 | 713,578 | ||||||
Loss and comprehensive loss for the period | $ | (3,996,486) | $ | (2,758,860) | $ | (8,268,124) | $(10,865,310) | |
Basic and diluted loss per share (note 15) | $ | (0.03) | $ | (0.02) | $ | (0.06) | $ | (0.09) |
Weighted average number of common shares | ||||||||
outstanding - basic and diluted | 131,173,287 | 125,791,559 | 130,547,750 | 125,649,934 |
The accompanying notes are an integral part of these unaudited condensed interim financial statements.
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Probe Metals Inc.
Condensed Interim Statements of Cash Flows (Expressed in Canadian Dollars)
(Unaudited)
Nine months ended | |||
September 30, | |||
2021 | 2020 | ||
Operating activities: | $ | (8,268,124) | |
Net loss for the period | $ (10,865,310) | ||
Adjustments for: | 1,890,997 | ||
Share-based payments (notes 13 and 14) | 2,518,131 | ||
Depreciation (notes 6 and 7) | 118,766 | 106,241 | |
Accrued interest receivable | 12,369 | 13,843 | |
Realized (gain) loss on sale of marketable securities (note 4) | (2,871,131) | 9,825 | |
Shares issued to acquire mineral property (note 16(i)(iii)(iv)) | 55,976 | 1,632,847 | |
Unrealized loss (gain) on marketable securities (note 4) | 2,224,457 | (713,578) | |
Premium on flow-through share (note 10) | (3,112,787) | (3,966,762) | |
Accretion expense (notes 5 and 9) | 88,069 | 96,215 | |
Restoration fees (note 5) | 98,244 | 874,548 | |
RSUs reclassified to liability (note 14) | (873,705) | - | |
Changes in non-cash working capital items: | (287,042) | ||
Trade accounts receivable and other receivables | (564,010) | ||
Prepaid expenses | 741 | (19,822) | |
Income tax receivable | 862,322 | 68,598 | |
Amounts payable and other liabilities | (367,160) | 467,474 | |
Net cash used in operating activities | (10,428,008) | (10,341,760) | |
Investing activities: | (3,264,551) | ||
Marketable securities acquisition through statutory plan of arrangement (note 4(i)) | - | ||
Proceeds from sale of marketable securities | 4,415,530 | 56,775 | |
Purchase of property and equipment (note 6) | (3,779) | (145,042) | |
Purchase of reclamation bonds | - | (389,358) | |
Net cash provided by (used in) investing activities | 1,147,200 | (477,625) | |
Financing activities: | - | ||
Share issue costs | (34,963) | ||
Exercise of warrants | 33,800 | - | |
Exercise of stock options | 4,005,000 | 846,000 | |
Lease payments (note 9) | (121,395) | (119,025) | |
Net cash provided by financing activities | 3,917,405 | 692,012 | |
Net change in cash | (5,363,403) | (10,127,373) | |
Cash, beginning of period | 30,739,058 | 34,697,148 | |
Cash, end of period | $ | 25,375,655 | $ 24,569,775 |
The accompanying notes are an integral part of these unaudited condensed interim financial statements.
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Probe Metals Inc.
Condensed Interim Statements of Changes in Shareholders' Equity (Expressed in Canadian Dollars)
(Unaudited)
Equity attributable to shareholders | |||||||||
Share | Contributed | Accumulated | |||||||
capital | Warrants | surplus | deficit | Total | |||||
Balance, December 31, 2019 | $ | 98,195,843 | $ | 3,689,463 | $ | 7,084,983 | $ (74,768,684) | $ | 34,201,605 |
Shares issued to acquire mineral property (note 16(i)(iii)(iv)) | 1,632,847 | - | - | - | 1,632,847 | ||||
Share issue costs | (34,963) | - | - | - | (34,963) | ||||
RSUs vested (note 14) | 29,822 | - | (29,822) | - | - | ||||
Exercise of stock options | 1,618,563 | - | (772,563) | - | 846,000 | ||||
Warrants expired | - | (2,481,664) | - | 2,481,664 | - | ||||
Share-based payments (notes 13 and 14) | - | - | 2,518,131 | - | 2,518,131 | ||||
Loss and comprehensive loss | - | - | - | (10,865,310) | (10,865,310) | ||||
Balance, September 30, 2020 | $101,442,112 | $ | 1,207,799 | $ | 8,800,729 | $ (83,152,330) | $ | 28,298,310 | |
Balance, December 31, 2020 | $106,772,946 | $ | 2,281,758 | $ | 9,222,400 | $ (86,819,268) | $ | 31,457,836 | |
Shares issued to acquire mineral property (note 16(iv)) | 55,976 | - | - | - | 55,976 | ||||
RSUs vested (note 14) | 378,810 | - | (378,810) | - | - | ||||
RSUs reclassified to liability (note 14) | - | - | (873,705) | - | (873,705) | ||||
Exercise of warrants | 39,593 | (5,793) | - | - | 33,800 | ||||
Exercise of stock options | 7,189,074 | - | (3,184,074) | - | 4,005,000 | ||||
Stock options expired | - | - | (223,627) | 223,627 | - | ||||
Share-based payments (notes 13 and 14) | - | - | 1,890,997 | - | 1,890,997 | ||||
Loss and comprehensive loss | - | - | - | (8,268,124) | (8,268,124) | ||||
Balance, September 30, 2021 | $114,436,399 | $ | 2,275,965 | $ | 6,453,181 | $ (94,863,765) | $ | 28,301,780 |
The accompanying notes are an integral part of these unaudited condensed interim financial statements.
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Probe Metals Inc. published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 12:20:03 UTC.