Premium Nickel Resources Ltd
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
NEXM$1.27+5.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-19.
0001493152-24-033164
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001493152-24-046023
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 155 previous paragraphs and 150 current paragraphs.
64 unchanged; 54 reworded; 31 added; 36 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 26 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
During the third quarter and up to November 10, 2024, the Company has drilled approximately 17,167 metres in 36 holes at Selebi North. Assays for a total of 30,915 metres across 71 completed holes, with 3 more in progress,**** have not been accounted for in the Initial MRE. These assay results will continue to be released as they are received and confirmed by the Company.
Current report
SNUG-24-096-W1: South Limb - deepest intersection drilled to date and located 100 meters down plunge of SNUG-24-089 and outside the resource defined in the Initial MRE:
Current report
SNUG-24-102 extension: N2 outside the resource defined in the Initial MRE:
Current report
SNUG-24-114: South Limb infill drilling and N2 outside the resource defined in the Initial MRE:
Current report
SNUG-24-144: Intersected N2 mineralization outside the resource defined in the Initial MRE. Assay results are pending.
Current report
Notes:
Current report
On August 8, 2024, the Company announced the results of the Initial MRE at the Selebi Mines, prepared in accordance with Canadian requirements, which is summarized in the table below:
Current report
Selebi Mines Mineral Resource Estimate, June 30, 2024
Current report
The key assumptions, parameters, and methods used to estimate the mineral resources are contained in the Selebi Technical Report. Readers are cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.
Current report
A summary of significant intersections at Selebi North as of September 30, 2024, is provided below. For assay results published after September 30, 2024, refer to the Company’s website (https://premiumnickel.com/) (the Company’s website is not incorporated in this Report):
Current report
Notes:
Current report
Further information on the above assay results can be found in the Company’s news releases and the Selebi Technical Report. Assay results are publicly released as they are received and confirmed by the Company. Additional assay results for the Selebi North underground drilling program, confirmed subsequent to September 30, 2024, can be found in the Company’s news releases outlined in the table below, copies of which are available on the Company’s website (https://premiumnickel.com/). The Company’s website is not incorporated in this Report.
Current report
A summary of significant intersections at the Selkirk Mine as of September 30, 2024 is provided below:
Current report
Notes:
Current report
Post Creek Property
Current report
The Company, being in the exploration stage, is subject to risks and challenges similar to companies in a comparable stage of exploration and development. These risks include the challenges of securing adequate capital for exploration and advancement of the Company’s material projects, operational risks inherent in the mining industry, and global economic and metal price volatility, and there is no assurance management will be successful in its endeavors. As at September 30, 2024, the Company had no source of operating cash flows, nor any credit line currently in place.
Current report
Selected Financial Information and Financial Position
Current report
Note:
Current report
Net Loss
Current report
Total assets as at September 30, 2024 decreased by $682,137 from the December 31, 2023 balance. Lower cash balances in the current period and depreciation of property, plant and equipment were largely offset by the purchase of spare parts from BCL.
Current report
Current Liabilities and Non-Current Financial Liabilities
Current report
Net cash used in operating activities YTD 2024 increased by $3,454,621 compared to YTD 2023, a result of a ramp-up in drilling, geophysics, engineering, and other activities at the Mines over the year.
Current report
Net cash provided by financing activities YTD 2024 decreased by $5,287,994 compared to YTD 2023. During the first nine months of 2023, the Company obtained a term loan for gross proceeds of approximately $15.0 million and closed private placements for gross proceeds of approximately $24.0 million, using a portion of those funds to repay a $7.0 million promissory note from Pinnacle Island LP. During the first nine months of 2024, the Company closed private placements for gross proceeds of approximately $27.5 million, and had no additional borrowings.
Current report
Capital Resources
Current report
Financings
Current report
Notes:
Current report
Selebi Mines
Current report
Contingencies
Current report
Key management personnel
Current report
Other related parties
Removed paragraphs (36)
Previous report
PNRL’s global strategy is to identify the best Ni-Cu-Co-PGM projects and to acquire or invest in opportunities that have high prospectivity in mining friendly jurisdictions located in low-risk countries with rule-of-law, supportive foreign investment and resource acts. PNRL sources projects that fit a strict standard that comply with the Company’s values and principles which stand up against the highest acceptable industry standards. PNRL is committed to governance through transparency, accountability, and open communication within PNRL’s team and stakeholders.
Previous report
Assay results included:
Previous report
Early due diligence work in 2019 highlighted an off-hole BHEM anomaly in a 2010 drill hole located down-plunge of the Selebi deposit. The collection of new gyro data confirmed that the off-hole anomaly lies at the downdip edge of the modelled Selebi mineralization which was intersected by a drill hole which reported an estimated true thickness interval of 38.5m averaging 1.58% Ni and 2.44% Cu, including 21.4m of 2.34% Ni and 3.39% Cu. This drill hole intersection is located approximately 300m down plunge of the existing mine workings and approximately 1,200m below surface and provides support to the potential establishment of mineral resources at depth at the Selebi deposit.
Previous report
Selebi North mineralization is also open at depth, and additional potential to establish mineral resources occurs there. Given the basin structure, it is possible that the Selebi North mineralization extends at depth and flattens to the south, while also potentially extending southward.
Previous report
The three mineral exploration licences (“MEL”), 2011/54, 2012/28 and 2018/21, had sufficient accrued work credits to keep the property in good standing until December 2023, at which time a reduction in the size of 2011/54 and 2012/28 was required. An application for the renewal and reduction of MEL 2012/28 was approved and the licence area has been reduced and renewed to December 31, 2026. The reduction of MEL 2012/28 from 265 km2 to 110.9 km2 has no material impact on potential for discovery of an economic deposit as all known mineral prospects are retained. The application for the reduction of 2011/54 from 2,747 km2 to 2,182 km2 was submitted and approved by the Greenland authority. This reduction has no material impact as all of the high priority mineral occurrences are retained. MEL2011/54 expires in December 31, 2025. MEL 2018/21 and prospecting licence 2020/05 are in effect until December 31, 2024.
Previous report
Po**st Creek Property
Previous report
During the six months ended June 30, 2024, the Company incurred $26,106 in site administration costs related to the Post Creek and, Halcyon properties.
Previous report
The Company is an exploration stage entity and has not yet achieved commercial production on any of its properties or profitable operations. The business of the Company entails significant risks. The recoverability of amounts shown for mineral property costs is dependent upon several factors including environmental risk, legal and political risk, the establishment of economically recoverable mineral reserves, confirmation of the Company’s interests in the underlying mineral claims, the ability of the Company to obtain necessary financing to complete exploration and advancement of its mineral assets and the ability of the Company to attain sufficient net cash flow from future profitable production or disposition proceeds.
Previous report
Selected Financial Information
Previous report
Total assets as at June 30, 2024 increased by $12,284,856 from same 6-month period at the end of Q2 2023. The change is mainly attributable to an increase in cash and spare parts of $ 6,473,625 and $992,311, respectively, as well as an increase in property, plant and equipment of $3,858,824.
Previous report
Investment in Exploration and Evaluation Assets
Previous report
Investment in exploration and evaluation assets in Q2 2024 and Q2 2023 is related to the acquisition of the Selebi Mines and the Selkirk Mine, the cost of which were capitalized, and the exploration and evaluation activities, the costs of which were expensed as incurred as the assets are still in the exploration and pre-development stage. As at June 30, 2024, the recorded amount of investment in the Company’s exploration and evaluation assets, including capitalized and expensed, totaled $61,382,140 compared to $39,583,472 as at June 30, 2023. Principal factors contributing to this change were increased exploration and evaluation activities on the Botswana assets in Q2 2024 relative to Q2 2023.
Previous report
Current and Non-Current Liabilities
Previous report
The Company incurred a net loss of $9,793,192 in Q2 2024, higher by $1,646,285 compared to a net loss of $8,146,907 for Q2 2023.
Previous report
The higher net loss in Q2 2024 was due to higher expenditures in Q2 2024 compared to Q2 2023 as outlined below:
Previous report
The higher loss in Q2 2024 was partially offset by the lower general and administrative expenses in Q2 2024 compared to Q2 2023. General and administrative expenses of $2,390,873 were lower by $66,500 compared to $2,457,373 in Q2 2023.
Previous report
Six Months Ended June 30, 2024 and June 30, 2023
Previous report
The Company incurred a net loss of $19,140,372 during the six-month period ended June 30, 2024 (“YTD 2024”), higher by $4,625,693 compared to a net loss of $14,514,679 for the same period in 2023 (“YTD 2023”).
Previous report
The higher net loss in YTD 2024 was due to higher expenditures in YTD 2024 compared to YTD 2023 as outlined below:
Previous report
The higher loss in YTD 2024 was partially offset by the lower DSU compensation in YTD 2024 compared to YTD 2023. DSU compensation (net of fair value movement) was $244,397 during YTD 2024 and was lower by $62,008 compared to $306,405 during YTD 2023. The decrease is attributed to a fair value movement. The total value of DSUs granted in YTD 2024 was higher than in YTD 2023, due to an increase in the number of directors on the Board of Directors, with the increase partially offset by the drop in the fair value of outstanding DSUs due to a decrease in the Company’s share price.
Previous report
Net cash used in operating activities was $8,239,631 in Q2 2024 compared to $8,761,966 in Q2 2023. The cash used in operations in Q2 2024 decreased by $522,335, mainly driven by an increase in cash operating costs as a result of increasing operating activities in Botswana, which was more than offset by a higher working capital in Q2 2023.
Previous report
Net cash used in operating activities in YTD 2024 was $17,762,086 compared to $14,723,114 in YTD 2023. The increase in net cash used in operating activities during YTD 2024 was mainly driven by an increase in cash operating costs as a result of increasing operational activities in Botswana.
Previous report
Cash flows generated in financing activities amounted to $27,142,286 in Q2 2024 compared to $24,978,176 in Q2 2023. The increase in cash flows in Q2 2024 compared to Q2 2023 was due to higher net proceeds from a non-brokered private placement completed in June 2024 for a total of $27.5 million, compared to net proceeds of $25 million from a financing in June 2023 including the repayment of the Promissory Note in Q2 2023.
Previous report
Cash flows generated in financing activities during YTD 2024 was $26,826,166, lower by $5,390,625 compared to $32,216,791 in YTD 2023. The Company closed two financing during the first six months of 2023, in February and in June 2023, for aggregate proceeds of $40M, compared to $27.5M received in the first six months of 2024 from the non-broker private placement completed in June 2024. The Company repaid the promissory note from Pinnacle Island LP for $7.3M with the proceeds from the financing in YTD 2023.
Previous report
Financial Position
Previous report
The following information regarding the financial position of the Company as at June 30, 2024 and December 31, 2023 is derived from the Company’s unaudited condensed interim consolidated financial statements for the six months ended June 30, 2024 and the audited consolidated financial statements for the year ended December 31, 2023.
Previous report
The Company’s cash balance on June 30, 2024 increased from the amount on December 31, 2023, primarily due to the financing in June 2024 as described in the “Liquidity” section under “Financing”.
Previous report
Other current assets increased by $1,127,135 due to the purchase of critical spare parts during Q2 2024 and trade payables and accrued liabilities slightly decreased by $7,203 as at June 30, 2024 compared to the amounts as at December 31, 2023.
Previous report
The slight decrease in exploration and evaluation assets was primarily due to foreign currency exchange fluctuation. Property, plant and equipment decreased by $507,342 as of June 30, 2024 compared to $8,488,499 as at December 31, 2023 as a result of depreciation.
Previous report
The Company’s lease liabilities were $1,306,906 as at June 30, 2024, lower by $304,237 compared to $1,611,143 as at December 31, 2023, due to lease payments made in Q2 2024.
Previous report
The increase in the Term Loan by $492,044 was attributed to the accretion of the value of the warrants issued in connection with the Term Loan. The increase in paid-in capital by $27,804,798 is mainly driven by the financings that closed on June 14, 2024 and June 21, 2024.
Previous report
Ca**pital Resources
Previous report
F**inancings
Previous report
Selebi Assets
Previous report
Related party transactions are summarized below and include transactions with the following individuals or entities:
Previous report
Contingent Liabilities
Reworded paragraphs (54)
Previous wording
The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and the notes to those financial statements appearing elsewhere in this Report. This discussion and analysis below includes forward-looking statements that are subject to risks, uncertainties and other factors described in the “Risk Factors” section set forth in the 2023 Form 10-K that could cause actual results to differ materially from those anticipated in these forward-looking statements as a result of various factors. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future. We caution you to read the “Cautionary Note Regarding Forward-Looking Statements” section of this Report.
Current wording
The following management’s discussion and analysis (this “MD&A”) of our financial condition and results of operation should be read in conjunction with the unaudited condensed interim consolidated financial statements of the Company and accompanying notes thereto for the quarters ended September 30, 2024 and 2023 (the “Quarterly Financial Statements”) appearing elsewhere in this Report. This discussion and analysis below includes forward-looking statements that are subject to risks, uncertainties and other factors described in the “Risk Factors” section set forth in the 2023 Form 10-K that could cause actual results to differ materially from those anticipated in these forward-looking statements as a result of various factors. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future. We caution you to read the “Cautionary Note Regarding Forward-Looking Statements” section of this Report.
Previous wording
The following management’s discussion and analysis (this “MD&A”) should be read in conjunction with the unaudited condensed interim consolidated financial statements of the Company and accompanying notes thereto for the quarters ended June 30, 2024 and 2023 (the “Quarterly Financial Statements”). This MD&A is intended to assist the reader to assess material changes in the financial condition of the Company during the quarter ended June 30, 2024, and the results of operations of the Company for the three-month and six-month periods ended June 30, 2024 and June 30, 2023. The Quarterly Financial Statements and the financial information contained in this MD&A were prepared in accordance with US GAAP and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission.
Current wording
This MD&A is intended to assist the reader to assess material changes in the financial condition of the Company during the quarter ended September 30, 2024, and the results of operations of the Company for the three-month and nine-month periods ended September 30, 2024 and September 30, 2023. The Quarterly Financial Statements and the financial information contained in this MD&A were prepared in accordance with US GAAP and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission.
Previous wording
PNRL is a mineral exploration company focused on the discovery and advancement of high-quality nickel-copper-cobalt-platinum group metals (“Ni-Cu-Co-PGM”) resources. The principal assets of the Company are the Selebi and Selebi North nickel-copper-cobalt (“Ni-Cu-Co”) mines (together, the “Selebi Mines”) in Botswana and related infrastructure (together, the “Selebi Assets”), as well as the nickel, copper, cobalt, platinum-group elements (“Ni-Cu-Co-PGE”) Selkirk mine (the “Selkirk Mine”) in Botswana, together with associated infrastructure and four surrounding prospecting licenses (collectively, the “Selkirk Assets”).
Current wording
PNRL is a mineral exploration and evaluation company focused on the discovery and advancement of high-quality nickel-copper-cobalt-platinum group metals (“Ni-Cu-Co-PGM”) resources. The principal assets of the Company are the Selebi and Selebi North nickel-copper-cobalt (“Ni-Cu-Co”) mines in Botswana and related infrastructure (together, the “Selebi Mines”), as well as the nickel, copper, cobalt, platinum-group elements (“Ni-Cu-Co-PGE”) Selkirk mine in Botswana, together with associated infrastructure and four surrounding prospecting licenses (collectively, the “Selkirk Mine” and together with the Selebi Mines, the “Mines”). PNRL is committed to governance through transparency, accountability, and open communication within PNRL’s team and stakeholders.
Previous wording
The Company’s principal business activity is the exploration and evaluation of PNRL’s flagship asset, the Selebi Mines and, separately, the Company’s Selkirk Mine, each located Botswana.
Current wording
The Company’s principal business activity is the exploration and evaluation of the Mines.
Previous wording
The Selebi Mines and the Selkirk Mine are permitted with 10-year mining licences and benefit from significant local infrastructure. The Company’s flagship Selebi Mines includes two operational shafts, the Selebi and Selebi North shafts, and related infrastructure such as rail, power and roads.
Current wording
The Mines are permitted with 10-year mining licences and benefit from significant local infrastructure. The Company’s flagship Selebi Mines includes two operational shafts, the Selebi and Selebi North shafts, and related infrastructure such as rail, power and roads.
Previous wording
In 2023, PNRL commenced its Phase 2 drill program undertaking a combination of resource and continued exploration drilling at the Selebi Mines to demonstrate the size potential of the Selebi Mines mineral system, with the aim of establishing an initial mineral resource estimate (the “InitialMRE”) on the Selebi Mines that will serve as the basis forfuture engineering studies. The resource drilling at the Selebi Mines commenced underground from the Selebi North infrastructure in August 2023 and is currently ongoing with three drills turning. Assay results for completed holes are released as they are received and confirmed by the Company. The Company sees significant potential for expanding the 2016 historic estimate.
Current wording
In 2023, PNRL commenced its Phase 2 drill program undertaking a combination of resource and continued exploration drilling at the Selebi Mines to demonstrate the size potential of the Selebi Mines mineral system, with the aim of establishing an initial mineral resource estimate (“MRE”) on the Selebi Mines (the “Initial MRE”) that will serve as the basis for future engineering studies. The resource drilling at the Selebi Mines commenced underground from the Selebi North infrastructure in August 2023 and is currently ongoing with three drills turning. Assay results for completed holes are released as they are received and confirmed by the Company.
Previous wording
The Company reported results of the Initial MRE on August 8, 2024 for the Selebi Mines in accordance with Canadian standards. The Initial MRE reflects a significant expansion of the 2016 historic estimate. During the second quarter and up to August 13, the Company has drilled approximately 18,982 metres in 39 holes at Selebi North, which have not been accounted for in the Initial MRE and for which assays are still pending, or recently received and pending imminent disclosure.
Current wording
On September 20, 2024, the Company filed the Initial MRE for its Selebi Mines in accordance with Canadian standards. The Initial MRE reflects a significant expansion of the 2016 historic estimate.
Previous wording
PNRL plans to continue its work at the Selkirk Mine and its surrounding prospecting licences, which is the Company’s second asset in Botswana, located approximately 75 kilometres north of the Selebi Mines. The focus of this work will be to understand the legacy work done by previous owners, which had advanced the Selkirk Mine to a bankable feasibility study for re-development as an open pit mine.
Current wording
The Company plans to continue its work at the Selkirk Mine and its surrounding prospecting licences, which is the Company’s second asset in Botswana, located approximately 75 kilometres north of the Selebi Mines. The focus of this work will be to understand the legacy work done by previous owners, which had advanced the Selkirk Mine to a bankable feasibility study for re-development as an open pit mine.
Previous wording
The Company plans to include drilling, geoscience and metallurgical work to support a MRE in respect of the Selkirk Mine, anticipated to be delivered in Q4 2024. In 2023, the Company completed test work to evaluate an alternative ore processing and tailings management strategy to those used in previous economic studies, the results of which are set forth in the Selkirk Technical Report (as defined herein).
Current wording
The Company’s Q3 2024 activities included a re-sampling program of historical drill core to support a MRE in respect of the Selkirk Mine, anticipated to be delivered in Q4 2024. In 2023, the Company completed test work to evaluate an alternative ore processing and tailings management strategy to those used in previous economic studies, the results of which are set forth in the Selkirk Technical Report (as defined herein).
Previous wording
For more information relating to the exploration and evaluation activities conducted on the Selebi Mines and Selkirk Mine, please see*“Exploration and Evaluation Activities”*below.
Current wording
For more information relating to the contemplated activities and milestones for the Mines, please see*“Exploration and Evaluation Activities”*below.
Previous wording
The following table outlines the key milestones, estimated timing and costs of each of the Company’s material projects, the Selebi Mines and the Selkirk Mine, based on the Company’s reasonable expectations and intended courses of action and current assumptions and judgement, with information based as of June 30, 2024.
Current wording
The following table outlines for the balance of 2024 key milestones, estimated timing and costs related to each of the Company’s material projects, the Selebi Mines and the Selkirk Mine, based on the Company’s reasonable expectations, intended courses of action and current assumptions and judgement, with information based as of September 30, 2024.
Previous wording
Readers are cautioned that the above represents the opinions, assumptions and estimates of management considered reasonable at the date the statements are made and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those described above.
Current wording
Readers are cautioned that the above represents the opinions, assumptions and estimates of management considered reasonable at the date the statements are made and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those described above. See*“Cautionary Note Regarding Forward Looking Statements”*.
Previous wording
The information relating to the Selebi Mines is derived from, and in some instances is an extract from, the technical report summary entitled*“Technical Report Summary on the Selebi Mines, Central District, Republic of Botswana”* dated June 27, 2024 (with an effective date of May 31, 2024) prepared for the Company by SLR (as defined herein) (the “Selebi Technical Report”), prepared in compliance with the SEC’s Modernization of Property Disclosures for Mining Registrants set forth in subpart 1300 of Regulation S-K (the “SEC Mining Rules”).
Current wording
The information relating to the Selebi Mines is derived from, and in some instances is an extract from, the technical report entitled*“NI 43-101 Technical Report, Selebi Mines, Central District, Republic of Botswana”* dated September 30, 2024 (with an effective date of June 30, 2024), which was prepared for the Company by SLR Consulting (Canada) Ltd. (“SLR”) (the “Selebi Technical Report”), and in accordance with Canadian standards.
Previous wording
The information relating to the Selkirk Mine is derived from, and in some instances is an extract from, the technical report summary entitled*“Technical Report Summary on the Selkirk Nickel Project, North East District, Republic of Botswana”* dated June 27, 2024 (with an effective date of May 31, 2024) prepared for the Company by SLR (the “Selkirk Technical Report”), prepared in compliance with the SEC Mining Rules.
Current wording
The information relating to the Selkirk Mine is derived from, and in some instances is an extract from, the technical report summary entitled*“Technical Report Summary on the Selkirk Nickel Project, North East District, Republic of Botswana”* dated June 27, 2024 (with an effective date of May 31, 2024) prepared for the Company by SLR (the**“Selkirk Technical Report**”), prepared in compliance with the SEC’s Modernization of Property Disclosures for Mining Registrants set forth in subpart 1300 of Regulation S-K.
Previous wording
The Selebi Mines infrastructure includes two mines, currently on care and maintenance, Selebi (#2 Shaft) and Selebi North (#4 Shaft), and associated surface infrastructure.
Current wording
The Selebi Mines infrastructure includes two mines that are currently on care and maintenance, Selebi (#2 Shaft) and Selebi North (#4 Shaft), and associated surface infrastructure.
Previous wording
In August 2023, an underground drilling program at Selebi North was initiated, and is currently active with three drills turning. As of August 13, 2024, a total of 49,271 metres has been completed in 121 holes, with 3 of those holes currently in progress. The core is sampled and sent to ALS Chemex in Johannesburg for analysis. Assay results are reported as they are received. All holes are surveyed with a gyro instrument and selected holes are surveyed with borehole EM. To date, a total of 35 underground holes have been surveyed. On August 8, the Company published summary results for the Initial MRE prepared in accordance with Canadian standards at the Selebi Mines.
Current wording
In August 2023, an underground drilling program at Selebi North was initiated, which is currently active with three drills turning. As of November 10, 2024, a total of 60,899 metres has been completed in 156 holes from eight underground drill bays, with three of those holes currently in progress. This new drilling is a combination of infill and exploration drilling to follow the extension of the mineralization down dip and down plunge. The core is sampled and sent to ALS Chemex in Johannesburg for analysis. Assay results are reported as they are received. All holes are surveyed with a gyro instrument and selected holes are surveyed with borehole electromagnetics. To date, a total of 59 underground holes have been surveyed.
Previous wording
The Selkirk Mine consists of a single mining licence covering an area of 1,458 hectares (14.58 km2) and four prospecting licences covering a total of 12,670 hectares (126.7 km2). The mining licence, 2022/7L, is centred approximately at 21°19’13” S and 27°44’17” E and is held by PNGPL, a subsidiary of PNRL. The mining licence was renewed for ten years commencing on May 27, 2022, ending on May 26, 2032. The four prospecting licences (PL050/2010, PL051/2010, PL210/2010, and PL071/2011) are valid for a period of two years effective from October 1, 2022.
Current wording
The Selkirk Mine consists of a single mining licence covering an area of 1,458 hectares (14.58 km2) and four prospecting licences covering a total of 12,670 hectares (126.7 km2). The mining licence, 2022/7L, is centred approximately at 21°19’13” S and 27°44’17” E and is held by PNGPL, a subsidiary of PNRL. The mining licence was renewed for ten years commencing on May 27, 2022, ending on May 26, 2032. The four prospecting licences (PL050/2010, PL051/2010, PL210/2010, and PL071/2011) are currently being renewed and are expected to be valid to September 30, 2026.
Previous wording
Exploration work completed by PNRL to date has consisted of the sourcing and digitization of existing historical information, confirming collar location information on selected historical holes, re-logging selected drill core, sampling mineralized drill core found untouched on surface, and submitting a number of samples for proof-of-concept metallurgical testing. PNRL has engaged SLR to complete a MRE. Following the data verification exercise, the Company has resampled core from 14 holes with the intention of reporting an updated MRE at the Selkirk Mine in the future. Exploration programs have also been ongoing at the Prospecting Licences located adjacent to the Selkirk Mining Licence, with a differential Global Positioning System of seven historical drillhole collars and two surface electromagnetics surveys completed in Q2 2024.
Current wording
Exploration work completed by PNRL to date has consisted of the sourcing and digitization of existing historical information, confirming collar location information on selected historical holes, re-logging selected drill core, sampling mineralized drill core found untouched on surface, and submitting a number of samples for proof-of-concept metallurgical testing. PNRL has engaged SLR to complete an MRE. Following the data verification exercise, the Company has resampled core in from 17 holes to obtain additional PGM analyses to be used in the MRE at the Selkirk Mine. Re-sampled core was sent to ALS Chemex in Johannesburg for analysis.
Previous wording
The Maniitsoq project is centred on the 75 kilometre by 15 kilometre Greenland Norite Belt which hosts numerous high-grade nickel-copper sulphide occurrences associated with mafic and ultramafic intrusions. The property is located 100 kilometres north of Nuuk, the capital of Greenland, and is accessible year-round either by helicopter or by boat from Nuuk or Maniitsoq, the latter located on the coast approximately 15 kilometres to the west. The Company acquired the Maniitsoq project in 2011 due to its potential for the discovery of significant magmatic sulfide deposits in a camp-scale belt. The Maniitsoq property consists of three exploration licences, Sulussagut No. 2011/54 and Ininngui No. 2012/28 comprising 2,689 and 296 square kilometres, respectively, and the Carbonatite property No. 2018/21 (63 square kilometres), and a prospecting licence, No. 2020/05, for West Greenland. The Greenland properties have no mineral resources or reserves.
Current wording
The Maniitsoq project is centred on the 75 kilometre by 15 kilometre Greenland Norite Belt which hosts numerous high-grade nickel-copper sulphide occurrences associated with mafic and ultramafic intrusions. The property is located 100 kilometres north of Nuuk, the capital of Greenland, and is accessible year-round either by helicopter or by boat from Nuuk or Maniitsoq, the latter located on the coast approximately 15 kilometres to the west. The Company acquired the Maniitsoq project in 2011 due to its potential for the discovery of significant magmatic sulfide deposits in a camp-scale belt. The Maniitsoq property consists of three exploration licences, Sulussagut No. 2011/54 and Ininngui No. 2012/28, comprising 2,182 and 110.9 square kilometres, respectively, and the Carbonatite property No. 2018/21 (63 square kilometres), and a prospecting licence, No. 2020/05, for West Greenland. The Greenland properties have no mineral resources or reserves. Mineral exploration licence (“MEL”) 2018/21 and prospecting licence 2020/05 are in effect until December 31, 2024. MEL 2011/54 expires December 31, 2025, while MEL 2012/28 expires December 31, 2026.
Previous wording
No exploration work was carried out in Greenland in 2023 or to date in 2024. Remaining targets were reviewed and prioritized in preparation for a potential field program in 2023, which was deferred. A quote was received in Q2 2023 for computer assisted target generation.
Current wording
Remaining targets were reviewed and prioritized in preparation for a potential field program in 2023, which was deferred. No exploration work was carried out in Greenland to date in 2024.
Previous wording
During the six months ended June 30, 2024, the Company incurred $69,610 in site administration on the Maniitsoq property, which is comprised of the Sulussugut, Ininngui, Carbonatite and 2020/05 licences. These expenditures were recorded as general exploration expense in the consolidated statements of comprehensive loss. No material expenditures or activities are contemplated on the Maniitsoq property at this time.
Current wording
No material expenditures or activities are contemplated on the Maniitsoq property at this time.
Previous wording
The Quetico property is located within the Thunder Bay Mining District of Ontario and consists of 99 claim cells in two blocks. Cells were acquired to assess: (a) the Quetico Sub-province corridor, which hosts intrusions with Ni-Cu-Co-PGM mineralization related to a late 2690 Ma Archean magmatic event; and (b) the Neoproterozoic (1100 Ma MCR) magmatic event and related intrusions.
Current wording
The Quetico property is located within the Thunder Bay Mining District of Ontario and in January 2024 consisted of 99 claim cells in two blocks. Cells were acquired to assess: (a) the Quetico Sub-province corridor, which hosts intrusions with Ni-Cu-Co-PGM mineralization related to a late 2690 Ma Archean magmatic event; and (b) the Neoproterozoic (1100 Ma MCR) magmatic event and related intrusions.
Previous wording
No work was carried out on the Quetico property to date in 2024. The last remaining claims expired on April 26, 2024.
Current wording
No work was carried out on the Quetico property in 2024. The last remaining claims expired on April 26, 2024.
Previous wording
As at June 30, 2024, the Company had working capital of $ 25,273,813 (FY 2023 – $14,999,619) and reported an accumulated deficit of $123,707,188 (FY 2023 – $104,566,816).
Current wording
As at September 30, 2024, the Company had working capital (calculated as total current assets less total current liabilities) of $15,092,693 (December 31, 2023 – $14,999,619) and reported an accumulated deficit of $135,712,148 (December 31, 2023 – $104,566,816).
Previous wording
As at June 30, 2024, the Company had $28,081,517 in available cash (FY 2023 – $19,245,628). There are no sources of operating cash flows. Given the Company’s current financial position and the ongoing exploration and evaluation expenditures, the Company will need to raise additional capital through the issuance of equity or other available financing alternatives to continue funding its operating, exploration and evaluation activities, and re-development of the mineral properties. Although the Company has been successful in its past fund-raising activities, there is no assurance as to the success of future fundraising efforts or as to the sufficiency of funds raised in the future.
Current wording
As at September 30, 2024, the Company had $17,358,377 in available cash (December 31, 2023 – $19,245,628). There are no sources of operating cash flows. The properties in which the Company currently has an interest are in the pre-revenue stage. As such, the Company is dependent on external financing to fund its activities. In order to carry out the planned development and cover administrative costs, the Company will need to use its existing working capital and raise additional amounts as needed. Subject to any changes in the Company’s operational plan, the Company has the funds to complete its planned mineral resource estimate for the Selkirk Mine, and to advance underground exploration drilling and studies at the Selebi Mines into the first half of 2025. Although the Company has been successful in its past fundraising activities, there is no assurance as to the success of future fundraising efforts or as to the sufficiency of funds raised in the future.
Previous wording
The net loss of $19,140,372 in Q2 2024 was higher by $4,625,693 compared to the same period in 2023 with a net loss of $14,514,679. The greater loss in Q2 2024 was largely due to increased exploration activities relating to the Botswana assets, the interest expense of the Term Loanand an increase in share-based payments.
Current wording
The net loss of $31,145,332 for the nine months ended September 30, 2024 was higher by $8,945,819 compared to the prior year comparable period net loss of $22,199,513 largely due to increased exploration activities relating to the Botswana assets, the interest expense on a three-year term loan (the “Term Loan”) with Cymbria Corporation (“Cymbria”), and an increase in share-based payments.
Previous wording
Current liabilities as at June 30, 2024 increased by $740,579 from Q2 2023 due to an increase in trade payables and accrued liabilities. Non-current liabilities as at June 30, 2024 increased by $5,403,547 from Q2 2023 as a result of the additional principal amount of the Term Loan.
Current wording
Current liabilities as at September 30, 2024 decreased by $311,473 from December 31, 2023 due to a decrease in lease liabilities resulting from the repayment of interest and principal on the Syringa Lodge lease. Non-current financial liabilities as at September 30, 2024 increased by $798,200 from December 31, 2023 as a result of the accretion of costs associated with the Term Loan.
Previous wording
As at the date of this Report, the Company has not earned revenue nor proved the economic viability of its projects. The Company’s expenses are not subject to seasonal fluctuations or general trends other than factors affecting costs such as inflation and input prices. The Company’s expenses and cash requirements will fluctuate from period to period depending on the level of activity at the projects based on factors related to raising capital to fund expenditures. Comparisons of activity made between periods should be viewed with this in mind. The Company’s quarterly results may be affected by many factors such as timing of exploration activity, share-based payment costs, capital raised, marketing activities and other factors that affect the Company’s exploration, evaluation and re-development activities.
Current wording
As at the date of this Report, the Company has not earned revenue nor proved the economic viability of its projects. The Company’s expenses are not subject to seasonal fluctuations or general trends other than factors affecting costs such as inflation and input prices. The Company’s expenses and cash requirements will fluctuate from period to period depending on the level of activity at the projects, which may be influenced by the Company’s ability to raise capital to fund these activities. Comparisons of activity made between periods should be viewed with this in mind. The Company’s quarterly results may be affected by many factors such as timing of exploration activity, share-based payment costs, capital raised, marketing activities and other factors that affect the Company’s exploration, evaluation and re-development activities.
Previous wording
The following table summarizes the Company’s Statement of Comprehensive Loss for the three- and six-month periods ended June 30, 2024 and June 30, 2023.
Current wording
The following table summarizes the Company’s Operations for the three-month and nine-month periods ended September 30, 2024 and September 30, 2023:
Previous wording
The following table summarizes the cash flows:
Current wording
The following table summarizes the Company’s cash flows:
Previous wording
Key investing activities relate to the acquisition of property, plant and equipment. During Q2 2024, investing activities totaled $43,181 compared to $391,031 in Q2 2023. In YTD 2024, investing activities totaled $128,277 compared to $1,391,031 in YTD 2023, lower by $1,262,754. The higher spending in Q2 2023 and YTD 2023 was related to the purchase of tools and parts for the three drills which were leased in 2023.
Current wording
Key investing activities relate to the acquisition of property, plant and equipment. Net cash used in investing activities YTD 2024 decreased by $3,231,309 compared to YTD 2023. The higher spending in YTD 2023 was related to the upfront purchase of tools and parts for the three drills which were leased in 2023.
Previous wording
As at June 30, 2024, the Company had $ 28,081,517 in available cash (FY 2023 – $19,245,628). There are no sources of operating cash flows. Given the Company’s current financial position and the ongoing exploration and evaluation expenditures, the Company will need to raise additional capital through the issuance of equity or other available financing alternatives to continue funding its operating, exploration and evaluation activities, and re-development of the mineral properties. Although the Company has been successful in its past fund-raising activities, there is no assurance as to the success of future fundraising efforts or as to the sufficiency of funds raised in the future.
Current wording
As at September 30, 2024, the Company had $17,358,377 in available cash (December 31, 2023 – $19,245,628). The Company has no sources of operating cash flows. Subject to any changes in the Company’s operational plan, the Company has the funds to complete its planned mineral resource estimate for the Selkirk Mine, and to advance underground exploration drilling and studies at the Selebi Mines into the first half of 2025. Given the Company’s current financial position and the ongoing exploration and evaluation expenditures, the Company will need to raise additional capital through the issuance of equity or other available financing alternatives to continue funding its operating, exploration and evaluation activities, and re-development of its mineral properties. Although the Company has been successful in its past fund-raising activities, there is no assurance as to the success of future fundraising efforts or as to the sufficiency of funds raised in the future.
Previous wording
For the three months ended June 30, 2024, the Company incurred a loss of $9,793,192 and reported an accumulated deficit of $123,707,188 as at June 30, 2024 (FY 2023 – $104,566,816). At the end of Q2 2024, the Company required additional funds to continue its planned operations and meet its future obligations, commitments and forecasted expenditures through June 30, 2025. Management is aware, in making its assessment, of material uncertainties related to events and conditions that may cast a substantial doubt upon the Company’s ability to continue as a going concern, and accordingly, the appropriateness of the use of accounting principles applicable to a going concern. The accompanying Financial Statements do not reflect the adjustments to the carrying values of assets and liabilities, expenses and financial position classifications that would be necessary if the going concern assumption was not appropriate. These adjustments could be material. In assessing whether a going concern assumption is appropriate, management considers all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period.
Current wording
For the three months ended September 30, 2024, the Company incurred a loss of $12,004,960 and reported an accumulated deficit of $135,712,148 as at September 30, 2024 (December 31, 2023 – $104,566,816). At the end of Q3 2024, the Company required additional funds to continue its planned operations and meet its future obligations, commitments and forecasted expenditures through September 30, 2025. Management is aware, in making its assessment, of material uncertainties related to events and conditions that may cast a substantial doubt upon the Company’s ability to continue as a going concern, and accordingly, the appropriateness of the use of accounting principles applicable to a going concern. The accompanying Financial Statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities, and the reported expenses and comprehensive loss that might be necessary should the Company be unable to continue as a going concern. These adjustments could be material. In assessing whether a going concern assumption is appropriate, management considers all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period.
Previous wording
During the six months ended June 30, 2024, the Company completed the following financing transactions:
Current wording
During the nine months ended September 30, 2024, the Company completed the following financing transactions:
Previous wording
On June 14, 2024, the Company closed the first tranche of a non-brokered private placement offering (the “June 2024 Financing”), pursuant to which the Company issued an aggregate 19,234,614 units of the Company (the “Units”) at a price of $0.78 per Unit (the “Issue Price”) for aggregate gross proceeds of $15,002,999. Each Unit is comprised of one common share of the Company (each, a “Common Share”) and one common share purchase warrant of the Company (each, a “Warrant”).
Current wording
On June 14, 2024, the Company closed the first tranche of the June 2024 Financing, pursuant to which the Company issued an aggregate 19,234,614 Units at a price of $0.78 per Unit (the “Issue Price”) for aggregate gross proceeds of $15,002,999. Each Unit is comprised of one common share of the Company (each, a “Common Share”) and one common share purchase warrant of the Company (each, a “Warrant”).
Previous wording
Each Warrant entitles the holder thereof to acquire one Common Share at any time prior to 5:00 p.m. (Eastern Standard Time) for a period expiring 60 months following the date of issuance (the “Expiry Date”) at a price of $1.10 per Common Share, subject to acceleration as described herein. If, at any time prior to the Expiry Date, the volume-weighted average trading price of the Common Shares on the TSXV (or such other principal exchange or market where the Common Shares are then listed or quoted for trading) is at least $2.00 per Common Share for a period of 20 trading days, the Company may, at its option, elect to accelerate the Expiry Date to a date (the “Accelerated Expiry Date”) that is not less than 30 days following the date that the Company provides written notice to the holders of the Warrants of the Accelerated Expiry Date.
Current wording
Each Warrant entitles the holder thereof to acquire one Common Share for a period expiring 60 months following the date of issuance (the “Expiry Date”) at a price of $1.10 per Common Share. If, at any time prior to the Expiry Date, the volume-weighted average trading price of the Common Shares is at least $2.00 per Common Share for a period of 20 trading days, the Company may, at its option, accelerate the Expiry Date with 30 days’ notice to the Warrant holders.
Previous wording
The net proceeds of the June 2024 Financing will be used by the Company to advance the exploration and development of its past-producing Ni-Cu-Co sulphide assets in Botswana and for general corporate and working capital purposes. See “Use of Proceeds “ for more details.
Current wording
The net proceeds of the June 2024 Financing will be used by the Company to advance the exploration and development of the Mines in Botswana and for general corporate and working capital purposes. See “Use of Proceeds” for more details.
Previous wording
On December 14, 2023, the Company closed a financing (the “December Financing”), comprised of a brokered private placement of units (the “Private Placement”) and an amended Term Loan. The Private Placement was completed in accordance with the terms of an agency agreement dated December 14, 2023 and entered into by the Company with Cormark Securities Inc. and BMO Capital Markets, as co-lead agents, and Canaccord Genuity Corp., Fort Capital Securities Ltd. and Paradigm Capital Inc. Pursuant to the Private Placement, the Company issued an aggregate of 13,133,367 Common Shares at a price of $1.20 per Common Share for aggregate gross proceeds of $15,760,040. The principal amount of the Term Loan has been increased by $5,882,353 (the “Additional Principal Amount”) from $15,000,000 to $20,882,353. The Additional Principal Amount was subject to an original issue discount of approximately 15% and was advanced by Cymbria Corporation (“Cymbria”) to the Company as a single advance of $5,000,000. The net proceeds from the December Financing were $19,743,845 after fees and expenses, which are being used to advance the exploration and evaluation of the Selebi Mines and the Selkirk Mine and for general corporate and working capital purposes. As at June 30, 2024, nearly all of the net proceeds of the December Financing have been used as contemplated. See “Use of Proceeds” for more details.
Current wording
On December 14, 2023, the Company closed a financing (the “December 2023 Financing”) comprised of a brokered private placement of units (the “Private Placement”) and an amended Term Loan. The Private Placement was entered into by the Company with Cormark Securities Inc. and BMO Capital Markets, as co-lead agents, and Canaccord Genuity Corp., Fort Capital Securities Ltd. and Paradigm Capital Inc. Under the Private Placement, the Company issued an aggregate of 13,133,367 Common Shares at a price of $1.20 per Common Share for aggregate gross proceeds of $15,760,040. The principal amount of the Term Loan was increased by $5,882,353 (the “Additional Principal Amount”) from $15,000,000 to $20,882,353. The Additional Principal Amount was subject to an original issue discount of approximately 15% and was advanced by Cymbria to the Company as a single advance of $5,000,000. The net proceeds from the December 2023 Financing were $19,743,845 after fees and expenses, which are being used to advance the exploration and evaluation of the Mines and for general corporate and working capital purposes. As at September 30, 2024, all of the net proceeds of the December 2023 Financing had been expended as planned.
Previous wording
The following table provides a summary of the principal use of proceeds of the June 2024 Financing and December Financing.
Current wording
The following table provides a summary of the principal use of proceeds of the June 2024 Financing and the December 2023 Financing.
Previous wording
As at June 30, 2024, the Company had a positive working capital of $25,273,813 (December 31, 2023 – $14,999,619), calculated as total current assets less total current liabilities. The increase in working capital is mainly due to an increase in cash, as well as in spare parts, and a decrease in lease liabilities. See*“Liquidity”*for more details.
Current wording
As at September 30, 2024, the Company had a positive working capital of $15,092,693 (December 31, 2023 – $14,999,619). The marginal increase in working capital is mainly due to an increase in spare parts inventory, partially offset by a decrease in lease liabilities.
Showing the first 40 of 54 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Exploration programs have also been ongoing at the prospecting licences located adjacent to the Selkirk mining licence, with a differential Global Positioning System of seven historical drillhole collars and two surface electromagnetics surveys completed in Q2 2024. The strongest electromagnetic anomaly occurs over the Rooikoppie Prospect, a gossan that was targeted by BCL drill holes. These five holes were located, Differential Global Positioning System coordinates collected, and two holes, DRKP001 and 002, were sampled in Q3 2024. Assays showed no significant results in Ni, Cu, or PGEs.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Three Months Ended June 30, 2024 and June 30, 2023