Exploration and Drilling Activities - PNRL commenced its Phase 2 drill program at the Selebi Mines, drilling a total of 35,246 meters in 92 drill holes as of May 16, 2024[171]. - Assay results included 30.45 meters of 2.88% NiEq and 102.80 meters of 2.23% NiEq reported in early 2024[171]. - The company plans to prepare current mineral resource estimates for the Selebi Mines expected in late Q2 or early Q3, 2024[167]. - The anticipated remaining costs for ongoing drilling and assays at the Selebi Mines are approximately C$1,140,000[173]. - The Selkirk Mine is located approximately 75 kilometers north of the Selebi Mines and is undergoing evaluation for redevelopment as an open pit mine[167]. - The company completed test work in 2023 to evaluate alternative ore processing and tailings management strategies for the Selkirk Mine[168]. - The Selebi Mines are permitted with 10-year mining licenses and benefit from significant local infrastructure[162]. - PNRL's global strategy focuses on acquiring high prospectivity Ni-Cu-Co-PGM projects in mining-friendly jurisdictions[161]. - The historical BCL operations at the Selebi Mines processed concentrates for over 40 years before being placed on care and maintenance in 2016[185]. Financial Performance - The company reported a net loss of $9,347,180 for Q1 2024, an increase of $2,979,408 compared to a net loss of $6,367,772 for Q1 2023[211]. - Total assets as of March 31, 2024, increased by $9,090,680 from Q1 2023, primarily due to increases in cash and property, plant, and equipment[212]. - Investment in exploration and evaluation assets totaled $54,536,402 as of March 31, 2024, compared to $36,332,411 in Q1 2023, reflecting increased exploration activities[213]. - Current liabilities decreased by $7,508,009 from Q1 2023, while non-current liabilities increased by $20,525,390 due to the Term Loan[214]. - General exploration expenses were $5,731,998 in Q1 2024, up by $1,716,157 from $4,015,841 in Q1 2023, driven by increased activities in Botswana[219]. - The company had working capital of $6,759,860 as of March 31, 2024, down from $14,999,619 in FY 2023[208]. - As of March 31, 2024, the company had $9,366,821 in available cash, a decrease from $19,245,628 in FY 2023, indicating a need for additional capital[209]. - The total comprehensive loss for the period was $9,484,417 in Q1 2024, compared to $6,640,109 in Q1 2023[218]. - Net cash used in operating activities increased to $9,522,455 in Q1 2024, up 60% from $5,961,148 in Q1 2023[222]. - Cash flows from financing activities were negative $316,120 in Q1 2024, compared to a positive cash flow of $7,238,615 in Q1 2023[225]. - The accumulated deficit increased to $113,913,996 as of March 31, 2024, compared to $104,566,816 at the end of 2023[231]. - Approximately $10.6 million of the net proceeds from the December Financing had been expended as of March 31, 2024[234]. - The company incurred a loss of $9,347,180 for the three months ended March 31, 2024[231]. Management and Compensation - Key management compensation for the three months ended March 31, 2024, totaled $888,209, compared to $861,256 for the same period in 2023[250]. - Deferred share unit (DSU) compensation was $54,647 in Q1 2024, down 65% from $157,292 in Q1 2023[220]. Assets and Liabilities - The company’s current assets totaled $11,836,415, a decrease from $20,890,908 as of December 31, 2023[253]. - The company’s exploration and evaluation assets in Botswana were valued at $8,495,730 as of March 31, 2024, down from $8,594,798 as of December 31, 2023[253]. - The fully diluted share capital of the Company is 242,997,724, including 185,708,588 common shares and 42,822,508 warrants[255]. - The Financing Parties acquired 16,037,800 common shares, representing approximately 10.7% of the Company’s issued shares, and 6,024,000 warrants with an exercise price of $1.4375[250]. - There are no off-balance sheet arrangements as of March 31, 2024[254]. - Management is not aware of any contingent liabilities that could impact the financial position related to exploration and evaluation assets as of March 31, 2024[251]. Other Financial Obligations - The company has a contingent payment obligation of US$56,750,000 for the Selebi Assets, payable in three instalments[238]. - The Company executed a sales agreement for the Syringa Lodge in Botswana with a total purchase price of $3,213,404, with a deposit of $482,011 paid and the first instalment of $1,365,697 made[245]. - A drilling equipment supply agreement was entered into with Forage Fusion Drilling Ltd. for a total purchase price of $2,942,000, with a deposit of $1,700,000 paid and monthly instalments of $103,500 for the balance[246]. - The Company has paid $10,000 annually on a net smelter return for both Post Creek and Halcyon projects during FY 2022 and FY 2023[247][248].
NexMetals Mining Corp(NEXM) - 2024 Q1 - Quarterly Report