Exploration and Drilling Activities - The Company has drilled approximately 17,167 metres in 36 holes at Selebi North during Q3 2024, with a total of 30,915 metres across 71 completed holes[179]. - The Company has reported assay results from a total of 80 drill holes at the Selebi Mines since January 1, 2024, with significant intersections reported[183]. - The Company announced strong assay results from re-sampling historic drill core at the Selkirk Mine, which will contribute to the upcoming mineral resource estimate[189]. - The Company has completed a total of 60,899 metres in 156 drill holes at Selebi North as of November 10, 2024[183]. - Significant intersections include 17.55 metres of 1.98% Cu and 2.07% Ni in hole SNUG-24-089, and 35.60 metres of 1.38% Cu and 1.54% Ni in hole SNUG-24-105[200]. - As of September 30, 2024, significant intersections at the Selkirk Mine include a drill hole (DSLK012) with a length of 139.00m and copper equivalent (CuEq) of 1.55%[214]. - The highest CuEq value reported was 5.78% over a length of 16.70m in drill hole DSLK219[214]. - Exploration work has included re-logging selected drill core and submitting samples for proof-of-concept metallurgical testing[212]. - Exploration programs adjacent to the Selkirk mining licence included two surface electromagnetic surveys completed in Q2 2024, with no significant results in nickel, copper, or PGEs[216]. Mineral Resource Estimates - The Initial Mineral Resource Estimate (MRE) for the Selebi Mines reflects a significant expansion from the 2016 historic estimate, with a total inferred resource of 24.72 million tonnes at an average grade of 1.50% Cu and 0.92% Ni[196]. - The Company plans to deliver a mineral resource estimate for the Selkirk Mine in Q4 2024, with ongoing costs estimated at $150,000[181]. - The company has engaged SLR to complete a Mineral Resource Estimate (MRE) following data verification exercises[212]. - The estimated true thickness of mineralization is derived from the MRE wireframe, with CuEq calculated using Cu + 2.06*Ni[201]. Financial Performance and Funding - The Company reported a net loss of $31,145,332 for the nine months, an increase of $8,945,819 compared to the prior year[236]. - The Company had working capital of $15,092,693 as of September 30, 2024, slightly up from $14,999,619 at the end of 2023[231]. - Total assets decreased by $682,137 to $37,292,068 as of September 30, 2024, primarily due to lower cash balances and depreciation[237]. - The Company had $17,358,377 in available cash as of September 30, 2024, down from $19,245,628 at the end of 2023[232]. - General exploration expenses increased by $5,345,605 for the nine months ended September 30, 2024, reflecting a ramp-up in activities[241]. - The Company closed private placements for gross proceeds of approximately $27.5 million during the first nine months of 2024[246]. - Net cash used in operating activities increased by $3,454,621 year-to-date 2024 compared to 2023, driven by increased exploration activities[243]. - The accumulated deficit reached $135,712,148 as of September 30, 2024, up from $104,566,816 at the end of 2023[248]. - The Company plans to use proceeds from the June 2024 Financing to advance exploration and development of its Mines in Botswana[252]. - Non-current financial liabilities increased by $798,200 to $18,990,747 as of September 30, 2024, due to costs associated with a Term Loan[239]. - The Company closed the December 2023 Financing, raising gross proceeds of $15,760,040 by issuing 13,133,367 Common Shares at $1.20 each[254]. - The principal amount of the Term Loan increased from $15,000,000 to $20,882,353, with an original issue discount of approximately 15%[254]. - As of September 30, 2024, the net proceeds of the December 2023 Financing were fully expended, primarily for exploration and evaluation of the Mines[254]. - The total estimated use of proceeds from the June 2024 Financing is $27,300,000, with $9,059,000 expended as of September 30, 2024[256]. Project Developments and Future Plans - Ongoing costs for the Selebi Mines are estimated at $2 million for drilling and assays, $4 million for operating costs, and $2 million for engineering and development, all to be incurred by December 2024[185]. - The Company received an extension of the Study Phase for the Selebi Mines project until February 1, 2026, allowing additional time to complete an economic study[189]. - The Company is focused on advancing key activities that will support an economic study for the Selebi Mines, including resource characterization drilling and underground development[187]. - The Company has a total purchase obligation of USD 56,750,000 for the Selebi Mines, payable in three installments, with conditions for cancellation if deemed uneconomical[261]. - The acquisition of Phikwe South and the Southeast Extension deposits is expected to close in Q4 2024, with an upfront cost of USD 1,000,000 and additional work commitments of USD 5,000,000 over four years[263][264]. Shareholder Information - As of September 30, 2024, the Company had 185,708,588 Common Shares outstanding, with a fully diluted share capital of 248,465,641[280]. - The Financing Parties acquired 16,037,800 Common Shares, representing approximately 10.7% of the Company's issued shares, as part of the EdgePoint Transactions[275]. - Key management compensation totaled $4,019,610 for the nine months ended September 30, 2024, compared to $3,237,974 for the same period in 2023[274]. Property Overview - The Selkirk Mine covers an area of 1,458 hectares and has four prospecting licences covering a total of 12,670 hectares[211]. - The Maniitsoq project in Greenland covers an area of 2,182 square kilometers and has no mineral resources or reserves as of now[220]. - The Post Creek property consists of 73 unpatented mining claim cells covering a total area of 912 hectares, with no exploration work completed in 2024[222]. - The Halcyon property, adjacent to the Post Creek property, consists of 63 unpatented mining cells and has not seen exploration work in 2024[226]. - The Quetico property, located in the Thunder Bay Mining District, consisted of 99 claim cells as of January 2024, but no work was carried out in 2024[228]. - The company holds a 100% interest in both the Post Creek and Halcyon properties, with obligations for annual net smelter return payments[222][226]. - No material expenditures or activities are planned for the Maniitsoq, Post Creek, Halcyon, and Quetico properties at this time[221][225][227][229].
NexMetals Mining Corp(NEXM) - 2024 Q3 - Quarterly Report