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AEX Gold Inc - Second Quarter Financial Results

RNS Number : 2716X
AEX Gold Inc
27 August 2020
 

 

("AEX" or the "Corporation")

AEX Gold Inc. Reports Second Quarter Financial Results

TORONTO, ONTARIO - AUGUST 27, 2020 - AEX Gold Inc. (AIM: AEXG; TSXV: AEX), an independent gold company with a portfolio of gold licences in Greenland, announces its unaudited condensed interim consolidated financial statements ("Financial Statements") for the quarter ended June 30, 2020. All figures are in Canadian dollars unless otherwise noted.

The Financial Statements and the accompanying Management Discussion and Analysis are available on the Corporation's website at www.aexgold.com and will be filed under the Corporation's SEDAR profile at www.sedar.com later today.

 

Financial Highlights

·   The Corporation reported a net loss of $3.4 million in H1 2020 (H1 2019: $1.1 million), driven by increased exploration and evaluation activities and corporate activity during the period, as well as non-cash stock based compensation. 

·   Exploration and evaluation expenses during the period were $1.5 million (H1 2019: $0.6 million), driven by increased activity on the Nalunaq Property and its regional exploration portfolio.

·    General and administrative expenses during the period were $0.9 million (H1 2020: $0.5 million), with the increase a result of higher management, consulting and professional fees as the Corporation moves towards development at Nalunaq and ahead of its AIM listing.

·   During the period, 11,387,626 warrants were exercised, each entitling the holder to receive one common share of the Corporation, at an exercise price per warrant between $0.45 and $0.50, with the Corporation receiving gross proceeds of $5.1 million.

·    The Corporation granted 2,195,000 options to its directors, officers and consultants, based on an estimated fair value of $0.47 per option, representing a total non-cash cost of $1.0 million in the period.

·    The Corporation had a cash balance of $4.4 million at June 30, 2020 ($1.5 million at December 31, 2019), with no debt, and total working capital of $3.0 million ($1.2 million at December 31, 2019).

·    Post-period end, the Corporation completed an equity placing raising gross proceeds of $72.7 million (£42.5 million).

 

Selected Financial Information

 

The following selected financial data is extracted from the Financial Statements for the six months ended June 30, 2020.


Financial Results

 

 

Three months

ended June 30,

Six months

ended June 30,

 

2020

2019

2020

2019

 

$

$

$

$

Exploration and evaluation expenses

912,676

397,220

1,524,451

565,822

General and administrative

498,639

277,335

881,550

493,796

Net loss and comprehensive loss

(2,442,132)

(673,725)

(3,408,569)

(1,075,130)

Basic and diluted loss per common share

(0.03)

(0.01)

(0.04)

(0.02)

 

Financial Position

 

 

As at June 30, 2020

As at December 31, 2019

 

$

$

Cash on hand

4,441,089

1,515,406

Total assets

6,547,834

2,720,473

Total current liabilities

1,682,113

645,933

Shareholders' equity

4,865,721

2,074,540

Working capital

2,978,497

1,157,012

 

Corporate and Operational Highlights

·    A business readiness program was initiated internally during the period as the Corporation increases its overall readiness for transitioning towards project execution, including human resources, recruiting, environmental and social impact assessment scoping, organizational structuring, project and cost control, and accounting.

·    In June 2020, the Greenlandic COVID Commission approved AEX's mobilization plan and on August 15, 2020 the Corporation successfully and safely mobilized its expatriate and local Greenlandic workforce on site at the Nalunaq Property ahead of the commencement of the 2020 summer work program.   

·   During the period, the Corporation was granted two new Mineral Exploration Licences in South Greenland, namely Saarloq and Anoritooq, covering an area totalling 2,528km2, taking the Corporations full license area to 3,356km2. The Corporation intends to conduct exploration activities over these new licence areas, as well as it's wider regional portfolio, as part of the 2020 summer work program announced on August 24, 2020.

 

Post Period-End

·   On July 27, 2020, the Corporation appointed Sigurbjorn ("Siggi") Thorkelsson as an independent non-executive director of the Corporation and Chair of the Audit and Risk Committee. Mr. Thorkelsson brings a wealth of experience in the financial markets, having worked at major financial institutions throughout his career.

·    On July 31, 2020, the Corporation completed its AIM Admission in addition to its existing TSX-V listing, with the issue of 94,444,445 common shares at a price of GBP 0.45 (C$0.77) per share.

·    The Corporation has progressed a number of discussions with non-equity financing providers, as detailed at the time of the fundraise in July 2020. The Board believes a modest non-equity facility offers an attractive opportunity to access additional capital to expand value creation activities across its portfolio without the dilution or costs of further equity. The Corporation is committed to securing the most attractive source of funding, and will provide an update on these discussions once a committed facility is secured.

Eldur Olafsson, CEO of AEX, commented:

"I'm pleased to announce our H1 2020 financial results, which demonstrate the significant increase in activity across our portfolio as our business transitions towards development.

"Following the successful $72.7 million fundraise and AIM listing in July 2020, the Company is in a very strong position and we are now funded for our planned work program at Nalunaq, where we are progressing well with the exploration and pre-development work on the asset. In addition to this, we are undergoing additional exploration work across our wider portfolio in Southern Greenland where we believe there is significant upside for investors in what is a materially undeveloped region.

"We look forward to providing updates to the market on these exciting workstreams in due course."

"As stated at the time of the fundraise, we are looking to secure additional non-equity funding in the form of a modest working capital facility, vendor financing or similar, to accelerate exploration activities across our material portfolio of gold assets in South Greenland. Whilst we will look to execute on this facility as soon as possible, we are in a very strong position post-fundraise and will take time to ensure that any facility we enter into offers the best terms to our company and shareholders, and look forward to updating the market at the appropriate time."

 

Enquiries:

AEX Gold Inc.

George Fowlie, Director and CFO
1-416-587-9801

gf@aexgold.com

Eldur Olafsson, Director and CEO
+354 665 2003

eo@aexgold.com

 

Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)

Callum Stewart

Simon Mensley

Ashton Clanfield

+44 (0) 20 7710 7600

 

Camarco (Financial PR)

Gordon Poole

Nick Hennis

+44 (0) 20 3757 4980

 

 

AEX Gold Inc: Unaudited Condensed Interim Consolidated Financial Statements for the Six Months Ended June 30, 2020

Consolidated Statements of Financial Position  

(Unaudited, in Canadian Dollars)

 

 

 

As at

June 30,

As at December 31,

 

Notes

2020

2019

 

 

$

$

ASSETS

 

 

 

Current assets

 

 

 

Cash

 

4,441,089

1,515,406

Escrow account for environmental monitoring

 

186,282

174,864

Sales tax receivable

 

31,859

17,792

Prepaid expenses and others

 

1,380

94,883

Total current assets

 

4,660,610

1,802,945

 

 

 

 

Non-current assets

 

 

 

Deferred share issuance costs

9

1,221,138

166,348

Escrow account for environmental monitoring

 

357,618

342,132

Mineral properties

3

55,682

41,945

Property and equipment

4

252,786

367,103

Total non-current assets

 

1,887,224

917,528

TOTAL ASSETS

 

6,547,834

2,720,473

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities

 

 

 

Trade and other payables

 

1,495,831

471,069

Environmental monitoring provision

 

186,282

174,864

 

 

 

 

Total liabilities

 

1,682,113

645,933

 

 

 

 

Equity

 

 

 

Capital stock

 

20,084,129

13,883,611

Warrants

5

238,749

1,459,604

Contributed surplus

 

2,755,487

1,535,400

Accumulated other comprehensive loss

 

(36.772)

(36,772)

Deficit

 

(18,175,872)

(14,767,303)

Total equity

 

4,865,721

2,074,540

TOTAL LIABILITIES AND EQUITY

 

6,547,834

2,720,473

 

 

 

 

Going concern

1

 

 

Subsequent events

9

 

 

 

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

  

 

 

Consolidated Statements of Comprehensive Loss

(Unaudited, in Canadian Dollars)

 

 

 

        Three months

ended June 30,

Six months

ended June 30,

 

Notes

2020

2019

2020

2019

 

 

$

$

$

$

 

 

 

 

 

 

Expenses

 

 

 

 

 

Exploration and evaluation expenses

7

912,676

397,220

1,524,451

565,822

General and administrative

8

498,639

277,335

881,550

493,796

Stock-based compensation

6

1,031,650

-

1,031,650

-

Foreign exchange loss (gain)

 

3,830

1,773

(21,567)

17,935

Operating loss

 

2,446,795

676,328

3,416,084

1,077,553

 

Other expenses (income)

 

 

 

 

 

Interest income

 

(4,873)

(4,765)

(9,915)

(7,065)

Finance costs

 

210

2,162

2,400

4,642

 

 

 

 

 

 

Net loss and comprehensive loss

 

(2,442,132)

(673,725)

(3,408,569)

(1,075,130)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares     outstanding - basic and diluted

 

81,176,725

58,222,276

77,307,646

58,006,586

Basic and diluted loss per common share

 

(0.03)

(0.01)

(0.04)

(0.02)

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

 

Consolidated Statements of Changes in Equity

(Unaudited, in Canadian Dollars)

 

 

 

Notes

Number of common shares

outstanding

Capital

Stock

Warrants

Contributed surplus

Accumulated other comprehensive loss

Deficit

Total

Equity

 

 

$

$

$

$

$

$

Balance at January 1, 2019

 

57,788,499

10,058,355

321,788

956,800

(36,772)

(9,665,197)

1,634,974

Net loss and comprehensive loss

 

-

-

-

-

-

(1,075,130)

(1,075,130)

 

 

 

 

 

 

 

 

 

Shares and warrants issuance under private placements

 

13,157,895

3,853,718

1,146,282

-

-

-

5,000,000

Share issuance costs

 

-

(28,462)

(8,466)

-

-

-

(36,928)

Balance at June 30, 2019

 

70,946,394

13,883,611

1,459,604

956,800

(36,772)

(10,740,327)

5,522,916

 

Notes

 

 

 

 

 

 

 

Balance at January 1, 2020

 

70,946,394

13,883,611

1,459,604

1,535,400

(36,772)

(14,767,303)

2,074,540

Net loss and comprehensive loss

 

-

-

-

-

-

(3,408,569)

(3,408,569)

 

 

 

 

 

 

 

 

 

Warrants exercised

5

11,387,626

6,140,518

(1,010,418)

-

-

-

5,130,100

Warrants expired

5

-

-

(210,437)

210,437

-

   -

-

Options exercised

6

100,000

60,000

-

(22,000)

-

-

38,000

Stock-based compensation

6

-

-

-

1,031,650

-

-

1,031,650

Balance at June 30, 2020

 

82,434,020

20,084,129

238,749

2,755,487

(36,772)

(18,175,872)

4,865,721

 

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

Consolidated Statements of Cash Flows

(Unaudited, in Canadian Dollars)

 

 

Notes

Six months

 ended June 30,

 

 

2020

2019

 

 

$

$

 

 

 

 

Operating activities

 

 

 

Net loss for the period

 

(3,408,569)

(1,075,130)

Adjustments for:

 

 

 

    Depreciation

4

114,317

82,863

    Stock-based compensation

6

1,031,650

-

    Finance costs

 

2,400

4,642

    Payment from cash held in escrow account for environmental monitoring

 

-

(28,846)

    Escrow account for environmental monitoring

 

-

28,846

    Foreign exchange loss (gain)

 

(19,112)

19,380

 

 

(2,279,314)

(968,245)

Changes in non-cash working capital items:

 

 

 

    Sales tax receivable

 

(14,067)

(13,215)

    Prepaid expenses and others

 

93,561

1,467

    Trade and other payables

 

293,916

271,621

    Payables to shareholders

 

-

4,762

 

 

373,410

264,635

Cash flow used in operating activities

 

(1,905,904)

(703,610)

 

 

 

 

Investing activities

 

 

 

Acquisition of mineral properties

3

(13,737)

-

Acquisition of property and equipment

 

-

(10,514)

Cash flow used in investing activities

 

(13,737)

(10,514)

 

 

 

 

Financing activities

 

 

 

Shares and warrants issuance

 

-

5,000,000

Share issuance costs

 

-

(750)

Exercise of warrants

5

5,130,100

-

Exercise of stock options

6

38,000

-

Deferred share issuance costs

9

(324,293)

-

Cash flow from financing activities

 

4,843,807

4,999,250

 

 

 

 

Net change in cash before effects of exchange rate changes on cash     during the period

 

2,924,166

4,285,126

Effects of exchange rate changes on cash

 

1,517

(3,447)

Net change in cash during the period

 

2,925,683

4,281,679

Cash, beginning of period

 

1,515,406

963,788

Cash, end of period

 

4,441,089

5,245,467

 

 

 

 

Supplemental cash flow information

 

 

 

Interest received

 

9,915

7,065

Share issuance costs included in trade and other payables

 

-

36,178

Acquisition of mineral properties included in trade and other payables

 

-

-

Exercise of warrants credited to capital stock

 

1,010,418

-

Exercise of stock options credited to capital stock

 

22,000

-

Deferred share issuance costs included in trade and other payables

 

851,228

-

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

 

Condensed Notes to the interim Consolidated Financial Statements

Six months ended June 30, 2020 and 2019

(Unaudited, in Canadian Dollars)

 

1.   NATURE OF OPERATIONS, BASIS OF PRESENTATION AND GOING CONCERN

 

AEX Gold Inc. (the "Corporation") was incorporated on February 22, 2017 under the Canada Business Corporations Act. The Corporation's head office is situated at 3400, One First Canadian Place, P.O. Box 130, Toronto, Ontario, M5X 1A4, Canada. The Corporation operates in one industry segment, being the acquisition, exploration and development of mineral properties. It owns interests in properties located in Greenland. The Corporation's financial year ends on December 31. Since July 2017, the Corporation's shares are listed on the TSX Venture Exchange (the "TSX-V") under the AEX ticker and since July 2020, the Corporation's shares are also listed on the AIM market of the London Stock Exchange ("AIM") under the AEXG ticker (note 9).

 

These unaudited condensed interim consolidated financial statements for the six months ended June 30, 2020 ("Financial Statements") were approved by the Board of Directors on August 26, 2020.

 

1.1   Basis of presentation

 

The Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") including International Accounting Standard ("IAS") 34, Interim Financial Reporting. The Financial Statements have been prepared under the historical cost convention.

 

The Financial Statements should be read in conjunction with the annual financial statements for the year ended December 31, 2019 which have been prepared in accordance with IFRS as issued by the IASB. The accounting policies, methods of computation and presentation applied in these Financial Statements are consistent with those of the previous financial year ended December 31, 2019.

 

1.2   Going concern

 

The Financial Statements were prepared using IFRS applicable to a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business as they come due. In assessing whether the going concern assumption is appropriate, senior management of the Corporation ("Management") takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. Management is aware in making its assessment of material uncertainties related to events and conditions that lend a significant doubt upon the Corporation' ability to continue as a going concern and accordingly, the appropriateness of the use of IFRS applicable to a going concern, as described in the following paragraph. The Financial Statements do not reflect the adjustment to the carrying values of assets and liabilities, expenses and financial position classifications that would be necessary if the going concern assumption would not be appropriate. These adjustments could be material.

 

The Corporation recorded a loss of $3,408,569 for the six months ended June 30, 2020 and has an accumulated deficit of $18,175,872 as at June 30, 2020. In addition to ongoing working capital requirements, the Corporation must secure sufficient funding to meet its other obligations, existing commitments for the exploration and evaluation programs and pay general and administration costs. As at June 30, 2020, the Corporation had working capital of $2,978,497. These conditions indicate the existence of material uncertainties that may cast a significant doubt regarding the Corporation' ability to continue as a going concern.

 

The Corporation' ability to continue as a going concern is dependent upon its ability to raise additional financing to further explore its mineral properties. The completion of the fundraising in July 2020 discussed in subsequent events (note 9), contributed to such financing. While Management has secured financing in the past, there can be no assurance it will be able to do so in the future or that these sources of funding or initiatives will be available for the Corporation or that they will be available on terms which are acceptable to the Corporation. If Management is unable to obtain new funding, the Corporation may be unable to continue its operations, and amounts realized for assets might be less than amounts reflected in these Financial Statements and this could have a significant impact on the financial position of the Corporation, its financial performance and its cash flows.

 

The measurement of certain assets and liabilities is dependent on future events; therefore the preparation of these Financial Statements requires the use of estimates, which may vary from actual results. The success of the Corporation' exploration and evaluation activities is influenced by significant financial risks, legal and political risks, commodity prices, and the ability of the Corporation to discover economically recoverable reserves.

 

During the first half of 2020, an outbreak of a new strain of coronavirus (COVID-19) resulted in a major global health crisis which continues to have impacts on the global economy and the financial markets at the date of completion of the Financial Statements. These events may cause significant changes on the Corporation's ability to complete planned exploration and evaluation activities in the future, meet its other obligations and existing commitments for the exploration and evaluation programs or our ability to obtain debt and equity financing. Following these events, the Corporation has taken and will continue to take action to minimize the impact of the COVID-19 pandemic. However, it is impossible to ultimately determine the financial implications of these events.

 

2.    CRITICAL ACCOUNTING JUDGMENTS AND ASSUMPTIONS

 

The preparation of the Financial Statements requires Management to make judgments and form assumptions that affect the reported amounts of assets and liabilities at the date of the Financial Statements and reported amounts of expenses during the reporting period. On an ongoing basis, Management evaluates its judgments in relation to assets, liabilities and expenses. Management uses historical experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgments. Actual outcomes may differ from these estimates under different assumptions and conditions.

 

In preparing the Financial Statements, the significant judgements made by Management in applying the Corporation accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Corporation's audited annual financial statements for the year ended December 31, 2019. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

 

3.    MINERAL PROPERTIES 

 

 

As at December 31, 2019

Additions

As at

June 30,

2020

 

$

$

$

Nalunaq

-

Tartoq

-

Vagar

-

Naalagaaffiup Portornga

-

Nuna Nutaaq

-

Saarloq

7,348

Anoritooq

6,389

Total mineral properties

41,945

13,737

55,682

  

 

 

As at December 31, 2018

Additions

As at      December 31,

2019

 

$

$

$

Nalunaq

1

-

1

Tartoq

18,431

-

18,431

Vagar

11,103

-

11,103

Naalagaaffiup Portornga

6,334

-

6,334

Nuna Nutaaq

-

6,076

6,076

Total mineral properties

35,869

6,076

41,945

 

4.    PROPERTY AND EQUIPMENT

 

 

Exploration and evaluation

 

 

Field equipment and infrastructure

Vehicles and rolling stock

Equipment

Total

 

$

$

$

$

 

 

 

 

 

Six months ended June 30, 2020

 

 

 

 

Opening net book value

271,977

86,656

8,470

367,103

Additions

-

-

-

-

Depreciation

(64,554)

(48,011)

(1,752)

(114,317)

Closing net book value

207,423

38,645

6,718

252,786

 

 

 

 

 

As at June 30, 2020

 

 

 

 

Cost

387,323

288,066

10,514

685,903

Accumulated depreciation

(179,900)

(249,421)

(3,796)

(433,117)

Closing net book value

207,423

38,645

6,718

252,786

           

 

Depreciation of property and equipment related to exploration and evaluation properties is being recorded in exploration and evaluation expenses in the consolidated statement of comprehensive loss, under depreciation. Depreciation of $114,317 was expensed as exploration and evaluation expenses during the six months ended June 30, 2020.

 

 

5.    WARRANTS

 

5.1   Warrants

 

Changes in the Corporation's warrants are as follow:

 

 

Six months ended June 30, 2020

2019

 

Number of warrants

Carrying Value

Weighted average exercise price

Number of warrants

Carrying Value

Weighted average exercise price

 

 

$

$

 

$

$

Balance, beginning

13,157,895

1,137,816

0.45

-

-

-

Issued

-

-

-

13,157,895

1,137,816

0.45

Exercised

(11,272,271)

(974,758)

0.45

-

-

-

Expired

(1,885,624)

(163,058)

0.45

-

-

-

Balance, end

-

-

-

13,157,895

1,137,816

0.45

 

The Corporation has accelerated the expiry of certain common share purchase warrants ("Warrants"), bearing an expiration date of June 28, 2022. The certificate evidencing the Warrants ("Warrant Certificate") provided for acceleration in certain circumstances, which were met during the period. From the period February 6, 2020 to March 5, 2020, the daily volume weighted average price of the Corporation's common shares on the TSX-V was equal to or greater than $0.50, thus satisfying the acceleration requirements under the Warrants. Accordingly, Warrant holders were provided with notification that any Warrants that were not exercised before April 20, 2020, being the 30th trading day following the occurrence of the acceleration event, would expire and be cancelled. Certain Warrant holders exercised 11,272,271 Warrants, each entitling the holder to receive one common share of the Corporation, at an exercise price per warrant of $0.45, representing gross proceeds of $5,072,522.

 

5.2   Agent warrants

 

Changes in the Corporation's agent and finders warrants are as follow:

 

 

Six months ended June 30, 2020

2019

 

Number of warrants

Carrying Value

Weighted average exercise price

Number of warrants

Carrying Value

Weighted average exercise price

 

 

$

$

$

$

$

Balance, beginning

1,067,739

321,788

0.49

1,067,739

321,788

0.49

Exercised

(115,355)

(35,660)

0.50

-

-

-

Expired

(182,227)

(47,379)

0.45

-

-

-

Balance, end

770,157

238,749

0.50

1,067,739

321,788

0.49

 

Agent and finders warrants outstanding and exercisable as at June 30, 2020 are as follows:

 

Number of warrants outstanding and exercisable

Exercise price

Expiry date

 

$

 

770,157

0.50

July 13, 2020

 

 

6.    STOCK OPTIONS

 

An incentive stock option plan (the "Plan") was approved initially in 2017 and renewed by shareholders on June 17, 2020. The Plan is a "rolling" plan whereby a maximum of 10% of the issued shares at the time of the grant are reserved for issue under the Plan to executive officers and directors, employees and consultants.  The Board of directors attributes the stock options and the exercise price of the options shall not be less than the closing price on the last trading day preceding the grant date. The options have a maximum term of ten years. Options granted pursuant to the Plan shall vest and become exercisable at such time or times as may be determined by the Board, except options granted to consultants providing investor relations activities shall vest in stages over a 12 month period with a maximum of one-quarter of the options vesting in any three-month period. The Corporation has no legal or constructive obligation to repurchase or settle the options in cash.

 

On June 17, 2020, the Corporation granted to its directors, officers and consultants 2,195,000 stock options exercisable at an exercise price of $0.70, with an expiry date of December 31, 2026. The stock options vested 100% at the grant date. Those options were granted at an exercise price equal the closing market value of the shares the previous day of the grant. Total stock-based compensation costs amount to $1,031,650 for an estimated fair value of $0.47 per option. The fair value of the options granted was estimated using the Black-Scholes model with no expected dividend yield, 76.41% expected volatility, 0.41% risk-free interest rate and 6.5 years options expected life. The expected life and expected volatility were estimated by benchmarking comparable companies to the Corporation.

 

Changes in stock options are as follow:

 

 

Six months ended

June 30, 2020

2019

 

Number of options

Weighted average exercise price

Number of options

Weighted average exercise price

 

 

$

 

$

Balance, beginning

5,650,000

0.43

3,020,000

0.47

Granted

2,195,000

0.70

2,630,000

0.38

Exercised

(100,000)

0.38

-

-

Balance, end

7,745,000

0.51

5,650,000

0.43

 

Stock options outstanding and exercisable as at June 30, 2020 are as follows:

 

Number of options outstanding and exercisable

Exercise

price

Expiry date

 

$

 

 

 

 

1,360,000

0.50

July 13, 2022

1,660,000

0.45

August 22, 2023

2,530,000

0.38

December 31, 2025

2,195,000

0.70

December 31, 2026

7,745,000

 

 

 

 

7.    EXPLORATION AND EVALUATION EXPENSES

 

 

Three months

ended June 30,

Six months

ended June 30,

 

2020

2019

2020

2019

 

$

$

$

$

Geology

524,863

262,113

795,423

361,727

Lodging and on-site support

3,663

-

3,663

-

Underground works

23,040

-

45,847

-

Drilling

33,950

-

33,315

-

Safety and environment

6,568

-

6,568

-

Analysis

43,205

12,088

67,068

14,580

Transport

9,923

5,725

70,656

5,725

Logistic support

84,223

60,939

162,710

79,889

Insurance

3,287

-

4,513

-

Maintenance infrastructure

102,442

-

187,297

-

Government fees

20,353

14,778

33,074

21,038

Depreciation

57,159

41,577

114,317

82,863

Exploration and evaluation expenses

912,676

397,220

1,524,451

565,822

 

 

 

8.    GENERAL AND ADMINISTRATION

 

 

Three months

ended June 30,

Six months

ended June 30,

 

2020

2019

2020

2019

 

$

$

$

$

Management and consulting fees

166,369

70,427

282,441

139,800

Director's fees

25,000

18,750

50,000

18,750

Professional fees

194,349

104,405

318,104

186,705

Marketing and industry involvement

60,606

33,503

146,981

61,821

Insurance

10,561

10,088

21,122

20,180

Travel and other expenses

16,606

30,840

31,180

48,265

Regulatory fees

25,148

9,322

31,722

18,275

General and administration

498,639

277,335

881,550

493,796

 

 

9.    SUBSEQUENT EVENTS

 

AIM listing

 

As of June 30, 2020, the Corporation was considering an additional listing on the AIM market of the London Stock Exchange, alongside its current listing on the TSX-V. As at June 30, 2020, the Corporation had incurred deferred share issuance costs of $1,221,138 as part of this process.

 

The admission of its entire issued share capital to trading on the AIM market occurred and dealings commenced on AIM on July 31, 2020 ("Admission") under the ticker AEXG.

 

Completion of the fundraising

 

On July 31, 2020, the Corporation completed the fundraising by issuing 94,444,445 common shares at a price of $0.77 (GBP 0.45) per share, for gross proceeds to the Corporation of $72,722,223 (GBP 42,500,000) ("Fundraising").

 

Stifel Nicolaus Europe Limited ("Stifel") acted as nominated adviser, broker and bookrunner to the Corporation in connection with the Fundraising and Admission. Cormark Securities Inc. and Paradigm Capital Inc. acted as co-managers in connection with the Fundraising (the "Agents").

 

 

 

 

Further Information:

About AEX

AEX's principal business objectives are the identification, acquisition, exploration and development of gold properties in Greenland. The Corporation's principal asset is a 100% interest in the Nalunaq Project, an advanced exploration stage property with an exploitation license including the previously operating Nalunaq gold mine. The Corporation has a portfolio of gold assets covering 3,356km2, the largest portfolio of gold assets in Southern Greenland covering the two known gold belts in the region. AEX is incorporated under the Canada Business Corporations Act and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the Corporation's current expectations regarding future events and the future growth of the Corporation's business. In this press release there is forward-looking information based on a number of assumptions and subject to a number of risks and uncertainties, many of which are beyond the Corporation's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to the factors discussed under "Risk Factors" in the Final Prospectus available under the Corporation's profile on SEDAR at www.sedar.com. Any forward-looking information included in this press release is based only on information currently available to the Corporation and speaks only as of the date on which it is made. Except as required by applicable securities laws, the Corporation assumes no obligation to update or revise any forward-looking information to reflect new circumstances or events. No securities regulatory authority has either approved or disapproved of the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Inside Information

This announcement contains inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
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Price: 48.5

Market: AIM
Market Cap: £85.89 m
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AEX Gold 'stepping up a gear' as it moves on the ground in Greenland...

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