Condensed Consolidated Financial Statements
For the Period Ended June 30, 2024 and 2023
Notice of No Auditor Review of Interim Financial Statements
Under National Instrument 51-102,"Continuous Disclosure Obligations", part 4 subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial
statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The Corporation's external auditors
have not performed a review of these financial statements.
VULCAN MINERALS INC.
June 30, 2024
Table of Contents
PAGE | |
Condensed Consolidated Statements of Financial Position | 1 |
Condensed Consolidated Statements of Loss | 2 |
Condensed Consolidated Statements of Comprehensive Loss | 3 |
Condensed Consolidated Statements of Changes in Equity | 4 |
Condensed Consolidated Statements of Cash Flows | 5 |
Notes to the Condensed Consolidated Financial Statements | 6 |
VULCAN MINERALS INC.
Condensed Consolidated Statements of Financial Position (Unaudited)
As at
June 30 | December 31 | |
(in Canadian dollars) | 2024 | 2023 |
$ | $ | |
Assets | ||
Current assets | ||
Cash and cash equivalents | 4,193,529 | 4,453,493 |
Guaranteed investment certificate | 2,021,030 | 2,013,485 |
Accounts receivable | 46,890 | 52,426 |
Prepaid expenses | 16,661 | 41,447 |
6,278,110 | 6,560,851 | |
Investments (Note 4) | 228,131 | 244,969 |
Investment in associates (Note 5) | 38,182,779 | 38,572,994 |
Exploration and evaluation assets (Note 6) | 2,138,891 | 2,055,214 |
Capital assets (Note 7) | 25,633 | 15,798 |
Total Assets | 46,853,544 | 47,449,826 |
Liabilities | ||
Current liabilities | ||
Accounts payable and accrued liabilities | 66,991 | 166,617 |
Loan (Note 8) | - | 30,000 |
66,991 | 196,617 | |
Deferred income tax liability | 5,228,452 | 3,586,288 |
Total Liabilities | 5,295,443 | 3,782,905 |
Equity | ||
Shareholders' equity (Note 9) | 41,558,101 | 43,666,921 |
Total Equity | 41,558,101 | 43,666,921 |
Total Liabilities and Equity | 46,853,544 | 47,449,826 |
Contingencies (Note 15) | ||
Approved on Behalf of the Board of Directors | ||
Patrick J. Laracy | Director | |
Carson Noel | Director |
See accompanying notes to the condensed consolidated financial statements
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VULCAN MINERALS INC.
Condensed Consolidated Statements of Loss
(Unaudited) | ||||
Three Months Ended | Six Months Ended | |||
June 30 | June 30 | |||
(in Canadian dollars) | 2024 | 2023 | 2024 | 2023 |
$ | $ | $ | $ | |
Expenses | ||||
General and administrative (Note 11) | (116,638) | (161,048) | (246,947) | (300,094) |
Director's fees | (20,000) | (20,000) | (20,000) | (20,000) |
Depreciation (Note 7) | (2,155) | (1,609) | (6,218) | (3,218) |
Loss from operations | (138,793) | (182,657) | (273,165) | (323,312) |
Other income (expenses) | ||||
Interest income | 70,088 | 62,389 | 145,842 | 117,081 |
Income from option payments (Note 6) | 92,963 | - | 92,963 | 131,399 |
Dilution gain (loss) (Note 5) | 212,045 | (370,252) | 239,655 | 234,795 |
Write-down of mineral exploration and evaluation assets | ||||
(Note 6) | (7,843) | - | (7,843) | - |
Loss from equity accounted investments (Note 5) | (365,735) | (580,272) | (629,870) | (764,070) |
1,518 | (888,135) | (159,253) | (280,795) | |
Loss before taxes | (137,275) | (1,070,792) | (432,418) | (604,107) |
Deferred income tax | (1,800,622) | 291,302 | (1,745,045) | 212,353 |
Net loss | (1,937,897) | (779,490) | (2,177,463) | (391,754) |
Net loss per share - basic and diluted | (0.015) | (0.007) | (0.017) | (0.003) |
Weighted-average number of common shares outstanding - | ||||
basic and diluted | 129,309,265 | 117,039,430 | 129,263,111 | 116,710,895 |
See accompanying notes to the condensed consolidated financial statements
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VULCAN MINERALS INC.
Condensed Consolidated Statements of Comprehensive Loss (Unaudited)
Three Months Ended | Six Months Ended | |||
June 30 | June 30 | |||
(in Canadian dollars) | 2024 | 2023 | 2024 | 2023 |
$ | $ | $ | $ | |
Net loss | (1,937,897) | (779,490) | (2,177,463) | (391,754) |
Other comprehensive loss: | ||||
Items that may subsequently be reclassified to profit or loss | ||||
Change in fair value on investments classified as FVOCI, | ||||
net of taxes (Note 4) | (48,772) | (177,779) | 16,447 | (187,258) |
(48,772) | (177,779) | 16,447 | (187,258) | |
Comprehensive loss | (1,986,669) | (957,269) | (2,161,016) | (579,012) |
See accompanying notes to the condensed consolidated financial statements
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VULCAN MINERALS INC.
Condensed Consolidated Statements of Changes in Equity (Unaudited)
Accumulated Other | Total | |||||
Contributed | Comprehensive | Retained | Shareholders' | |||
(in Canadian dollars) | Share Capital | Warrants | Surplus | Loss | Earnings | Equity |
$ | $ | $ | $ | $ | $ | |
(Note 9) | (Note 9) | (Note 9) | ||||
Balance December 31, 2022 | 24,659,813 | 2,187,253 | 3,949,212 | (993,047) | 13,806,169 | 43,609,400 |
Net income and comprehensive income | ||||||
January 1, 2023 - June 30, 2023 | - | - | - | (187,258) | (391,754) | (579,012) |
Exercise of options | 3,725 | - | (1,225) | - | - | 2,500 |
Exercise of warrants | 278,594 | (53,594) | - | - | - | 225,000 |
Share issuance costs, net of taxes | (5,437) | - | - | - | - | (5,437) |
Balance June 30, 2023 | 24,936,695 | 2,133,659 | 3,947,987 | (1,180,305) | 13,414,415 | 43,252,451 |
Net loss and comprehensive loss | ||||||
July 1, 2023 - December 31, 2023 | - | - | - | (226,968) | (383,126) | (610,094) |
Exercise of options | - | - | - | - | - | - |
Exercise of warrants | 1,275,339 | (245,339) | - | - | - | 1,030,000 |
Share issuance costs, net of taxes | (5,436) | - | - | - | - | (5,436) |
Expiry of warrants | - | (1,885,299) | 1,885,299 | - | - | - |
Balance December 31, 2023 | 26,206,598 | 3,021 | 5,833,286 | (1,407,273) | 13,031,289 | 43,666,921 |
Net loss and comprehensive loss | ||||||
January 1, 2024 - June 30, 2024 | - | - | - | 16,447 | (2,177,463) | (2,161,016) |
Exercise of warrants | 60,336 | (2,736) | - | - | - | 57,600 |
Share issuance costs, net of taxes | (5,404) | - | - | - | - | (5,404) |
Expiry of warrants | - | (285) | 285 | - | - | - |
Balance June 30, 2024 | 26,261,530 | - | 5,833,571 | (1,390,826) | 10,853,826 | 41,558,101 |
See accompanying notes to the condensed consolidated financial statements
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VULCAN MINERALS INC.
Condensed Consolidated Statements of Cash Flows Period Ended
(Unaudited)
June 30 | December 31 | |
(in Canadian dollars) | 2024 | 2023 |
$ | ||
Operating Activities | ||
Net loss | (2,177,463) | (774,880) |
Adjustment for non cash items: | ||
Dilution gain (Note 5) | (239,655) | (760,126) |
Loss from equity accounted investments (Note 5) | 629,870 | 1,642,557 |
Deferred option payments and investment in unrelated companies (Note 6) | (75,000) | (81,400) |
Write-down of mineral exploration and evaluation assets (Note 6) | 7,843 | - |
Income from guaranteed investment certificate | (52,104) | (13,485) |
Deferred income tax liability | 1,745,045 | (308,606) |
Depreciation (Note 7) | 6,218 | 6,435 |
(155,246) | (289,505) | |
Changes in non-cash working capital | ||
Accounts receivable | 5,536 | 101,704 |
Prepaid expenses | 24,786 | (30,832) |
Accounts payable and accrued liabilities | (99,626) | 28,636 |
Cash used in operating activities | (224,550) | (189,997) |
Financing Activities | ||
Cash received upon exercise of options (Note 9) | - | 2,500 |
Cash received upon exercise of warrants (Note 9) | 57,600 | 1,255,000 |
Repayment of loan (Note 8) | (30,000) | - |
Cash from financing activities | 27,600 | 1,257,500 |
Investing Activities | ||
Exploration and evaluation expenditures (Note 6) | (91,520) | (774,136) |
Refunds on exploration and evaluation assets (Note 6) | - | 12,650 |
Purchase of guaranteed investment certificate | (2,000,000) | (2,000,000) |
Redemption of guaranteed investment certificate | 2,044,559 | - |
Purchase of capital assets (Note 7) | (16,053) | (1,286) |
Cash used in investing activities | (63,014) | (2,762,772) |
Net change in cash and cash equivalents for the period | (259,964) | (1,695,269) |
Cash and cash equivalents, beginning of period | 4,453,493 | 6,148,762 |
Cash and cash equivalents, end of period | 4,193,529 | 4,453,493 |
See accompanying notes to the condensed consolidated financial statements
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VULCAN MINERALS INC.
Notes to the Condensed Consolidated Financial Statements
June 30, 2024
1. NATURE OF OPERATIONS
Vulcan Minerals Inc. is engaged in the evaluation, acquisition and exploration of mineral properties in Newfoundland and Labrador. The Company plans to ultimately develop the properties as joint ventures, bring them into production, option or lease properties to third parties, or sell the properties outright. The Company is in the exploration stage on most of its projects. The Company is a publicly traded company, incorporated under the laws of the
Province of Alberta, Canada. Its registered address is 333 Duckworth Street, St. John's, NL
A1C 1G9.
2. BASIS OF PRESENTATION
The Company prepares its condensed consolidated financial statements with Canadian generally accepted accounting principles ("GAAP") as set out in the Canadian Professional Accountants of Canada Handbook - Accounting - Part I ("CPA Canada Handbook") which incorporates International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), and interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC").
These condensed consolidated financial statements have been prepared on an historical cost basis, except for investments which are measured at fair value and investment in associates which is measured using the equity method.
In addition to the Company, the condensed consolidated financial statements include all subsidiaries. Subsidiaries are all corporations, over which the Company is able, directly or indirectly, to control financial and operating policies, which is the authority usually connected with holding majority voting rights. Subsidiaries are fully consolidated from the date on which control is acquired by the Company. Intercompany transactions and balances are eliminated upon consolidation. They are deconsolidated from the date that control by the Company ceases. Any retained interest is measured to its fair value with the change in carrying amount recognized in income or loss. The fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate or joint venture. The Company has two subsidiaries which are both inactive.
These unaudited interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") applicable to the preparation of interim
financial statements, including IAS 34, Interim Financial Reporting. The accounting policies
used in preparing these unaudited interim condensed consolidated financial statements are consistent with those used in the preparation of the Company's annual financial statements. A summary of the Company's material accounting policies under IFRS is presented in Note 4 to
the year-end financial statements, December 31, 2023.
These condensed consolidated financial statements were approved and authorized for issuance by the Board of Directors on August 23, 2024.
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VULCAN MINERALS INC.
Notes to the Condensed Consolidated Financial Statements
June 30, 2024
3. NEW AND AMENDED IFRS STANDARDS AND INTERPRETATIONS
For the period ended June 30, 2024, there have been no new or amended accounting
pronouncements by the IASB that would have a material impact on the Company's financial
results or position.
4. INVESTMENTS
June 30 | December 31 | |
2024 | 2023 | |
$ | $ | |
Investments | 228,131 | 244,969 |
Investments classified as fair value through other comprehensive income consist of: shares in public companies received as consideration for option payments on mineral claims with an initial value of $1,158,303 (December 31, 2023 - $1,083,303). Shares were also received as consideration for the sale of mineral claims with an initial value of $960,000 (December 31, 2023 - $960,000).
At June 30, 2024, the market value of the shares is $228,131 (December 31, 2023 - $244,969).
5. INVESTMENT IN ASSOCIATES | ||
June 30 | December 31 | |
2024 | 2023 | |
$ | $ | |
Investment in Atlas Salt Inc. | 37,846,944 | 38,169,833 |
Investment In Triple Point Resources Ltd. | 335,835 | 403,161 |
38,182,779 | 38,572,994 |
Atlas Salt Inc.
Atlas is incorporated under the laws of the Province of British Columbia. Atlas Salt's head office is in St. John's, Newfoundland and Labrador.
Management has determined that its investment in the common shares of Atlas Salt gives it significant influence over Atlas Salt. As a result, the Company applied the equity method of accounting for its investment in Atlas Salt.
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