Business

North Peak Resources : MD&A for the year ended December 31, 2021








Management’s Discussion and Analysis For the Year Ended December 31, 2021 Expressed in Canadian Dollars

The following administration’s dialogue and evaluation (“MD&A“) of the monetary situation and outcomes of operations of North Peak Resources Ltd. (“North Peak, or the “Company“) constitutes administration’s evaluate of the components that affected the Company’s monetary and working efficiency for the 12 months ended December 31th, 2021. This MD&A has been ready in compliance with the necessities of National Instrument 51-102 Continuous Disclosure Obligations. This dialogue ought to be learn along side the audited annual consolidated monetary statements of the Company for the 12 months ended December 31, 2021 along with the notes thereto. Results are reported in Canadian {dollars}, except in any other case famous. Information contained herein is offered as at May 2, 2022 except in any other case indicated.

Description of Business

The Company was included on March 28, 2011 and arranged below the legal guidelines of Alberta, Canada. The registered workplace of the Company is positioned at 1600, 421 – 7 Avenue SW, Calgary, Alberta T2P 4K9. The Company right now is a Canadian based mostly gold exploration and improvement firm that’s listed on the TSX Venture Exchange (the “Exchange“) below the image “NPR”.

The Company‘s enterprise improvement objectives are to amass mineral properties which have the potential to host low value, lengthy life gold manufacturing in politically secure jurisdictions. To this finish the Company holds an choice (the “Kenogami Option“) to amass 100% curiosity in and to the Kenogami Lake Project (previously known as the Mike Leahy Property) positioned 15 kilometres southwest of Kirkland Lake, Ontario consisting of twenty-seven (27) mineral claims totaling roughly 500.3 hectares (the “Leahy Property“).

To additional advance the Company’s belongings in improvement North Peak signed a non-binding Letter of Intent for a possible buy choice on the Black Horse gold property in Nevada (the “Black Horse LOI“). Following due diligence by each parties, North Peak on signed the Black Horse Option Agreement (the “BH Agreement“) on December 6th, 2021 and started the applying for permits which the contemplated property work applications required as described additional under.

The Company’s unique enterprise, beginning in November 2015, was as an enterprise know-how supplier devoted to constructing blockchain applied sciences. The Company was named BTL Group Ltd. after which Interbit Ltd., throughout that time period. The Company obtained numerous patents within the United States and subsequent to the 2020 12 months finish these patents, together with ongoing associated patent purposes in China, had been offered for a $150,000 money fee and a 5% royalty on any income generated by the customer and its associates from any business purposes derived from the patents that such purchaser might develop.

On March 20, 2020 the Company entered into the Kenogami Option settlement whereby the Company has been granted the exploration property Option described above and that it proposed to finish a Change of Business” transaction (the “COB Transaction“) to develop into a Tier 2 mining issuer listed on the Exchange and to be engaged within the exploration and improvement of mineral properties. The Company additionally proposed to vary its title to North Peak Resources Ltd.” and to finish a consolidation of the issued and excellent widespread shares of the Company (the “Common Shares“) on the premise of 1 (1) post-consolidation Common Share for every two (2) pre-consolidation Common Shares (the Consolidation“).

On June 24, 2020 obtained shareholder approval for the proposed COB Transaction, the Consolidation, the proposed title change, and annual assembly issues.

On June 29, 2020, the Company introduced it had accomplished the COB Transaction, the Consolidation and the title change to “North Peak Resources Ltd.”. Current and comparative disclosure has been amended to mirror this Consolidation. In addition, throughout 2020, the Company’s wholly owned subsidiaries Blockchain Tech Ltd. and BTL Dev Ltd. had been wound down and dissolved.

North Peak Resources Ltd. Management’s Discussion and Analysis For the Year Ended December 31, 2021 Expressed in Canadian Dollars

Highlights and Outlook

Two years in the past throughout the second quarter of 2020 the Company accomplished the COB Transaction to develop into engaged within the exploration and improvement of mineral properties, added to its Board of Directors and revamped and redirected its administration workforce and their efforts. The Company decreased its month-to-month overhead and administration has targeted its consideration on the seek for mineral properties that might meet its challenge standards.

The Company’s administration workforce and Directors have earlier expertise in figuring out and buying low value and lengthy life mining initiatives in politically secure jurisdictions after which constructing these belongings into profitable Companies. Similar search standards will information North Peak administration because it evaluates alternatives with a selected emphasis on “brownfield” initiatives, that are former working mines that ceased operation both just lately or nicely previously. Such brownfield initiatives can typically have business benefits over “greenfield” initiatives – that are exploration stage properties which have by no means been in manufacturing. These benefits can embrace shorter time to re-start manufacturing, easier allowing timelines and infrequently are positioned the place a labor drive and suppliers of key mining supplies exist close by.

During the 12 months ending December 30th 2021, the Company’s administration workforce narrowed its seek for mining alternatives to North American and examined challenge alternatives in Nevada. In this search course of the Company was launched to the Black Horse gold property the place it entered into negotiations and on December 6th signed the Nevada Option settlement to amass a non-binding choice for its buy.

The Black Horse is a former producing gold property and has inside its boundaries the historic Black Horse and San Pedro gold mines, which had been mined from 1905 to circa 1913. The Black Horse property is positioned 50 miles east of Ely Nevada in White Pine County Nevada and was acquired by Minex in 1997. Minex carried out exploration applications in 1997 and 1998 Minex the place it drilled greater than 300 holes into the floor oxide close to floor and outlined a strike size of mineralization that seems to strike greater than 2 miles. A historic floor based mostly useful resource for gold and silver for the Black Horse property had been outlined in a Nov. 2016 technical report for Minex.

The business phrases of the Nevada Option settlement to Minex will probably be an preliminary fee of US $1.5 million (by way of a mixture of shares and money), two choice funds and a manufacturing royalty schedule. Option fee #1 will probably be for USD$10 mln due 18 months after the December 6th, 2021 signing of the BH Agreement inside which period the Company will perform confirmatory exploration applications. Option fee #2 is for a further USD$10 mln and is due 12 months later and with this second fee the Company will purchase 50% of the Black Horse property. The Company will purchase the remaining 50% upon acquiring the important permits required for manufacturing.

Regarding the Kenogami Option and efforts to maintain it in good standing, the Company is required to make whole money funds of $35,000, subject a complete of 100,000 Common Shares (earlier than the Consolidation) and incur exploration expenditures of at least $250,000, as follows:

(a)paying the optionor $35,000 upon issuance of a National Instrument 43-101 Technical Report on the Property (paid in 2020);

Management’s Discussion and Analysis For the Year Ended December 31, 2021 Expressed in Canadian Dollars

  • (b) issuing to the optionor 25,000 Common Shares (post-Consolidation) efficient upon issuance of the Technical Report (issued July 2, 2020, and ascribed a good worth of $19,500);

  • (c) incurring $100,000 of exploration expenditures on the Property on or earlier than the second anniversary of the closing of the COB Transaction (accomplished), and issuing to the optionor 50,000 Common Shares as soon as such $100,000 of exploration expenditures have been incurred(Issued November 10, 2021); and

  • (d) incurring $150,000 of exploration expenditures on the Property on or earlier than the fourth anniversary of the deadline of the COB Transaction.

Further to its exploration expenditure obligations, the Company commenced a restricted drilling program on the Leahy property after 12 months finish nonetheless this was delayed on account of native floor situations. Drilling was accomplished in Q3 2021, with a single 602 metre drill gap from the shore of Kenogami Lake. It intersected a significant construction alongside what’s interpreted to be the identical Main Break construction as that internet hosting the ore zones of Kirkland Lake positioned 8 km SE. The main construction is a 3.8 metre (m) clay gouge fault with completely different rock varieties on both facet of it. It is preceded by a 102m robust shear zone of intense sericite alteration (10%) and with ~10-15% quartz-ankerite veining, and regionally as much as 15% pyrite over 0.5m locally-all inside Archean mafic volcanic rock. Assays weren’t significant- with highs of 0.3 grams per tonne (g/t) Au over 1.0 metres (m), and 0.2 g/t over 1.0m- however that’s the nature of the Kirkland Lake ore (all or nothing, with a change in grade occurring rapidly). This marketing campaign completes the requirement of incurring $100,000 of exploration expenditures earlier than the second anniversary and thus an additional 50,000 widespread shares will now be issued to the optionor.

On June 24, 2020, Mike Sutton and Gordon Chmilar had been appointed to the Board of Directors of the Company.

As at December 30th, 2021, the Company reported a money place of $5,115,374 and dealing capital of $5,182,580.

On January 8th, 2021, the Company closed a non-brokered non-public placement of two,299,999 widespread shares at a difficulty worth of $0.48 per share, for combination gross proceeds of $1,104,000. Cash prices of subject amounted to $67,890 in combination.

On March 14th, 2022, the Company closed a non-brokered non-public placement of two,499,996 widespread shares at a difficulty worth of $2.30 for gross proceeds of $5,750,000. Cash prices of subject amounted to $225,422 in combination.

Year Ended Dec. 31, 2021

($)

Year Ended Dec. 31, 2020

($)

Year Ended Dec. 31, 2019

($)

Total belongings

5,115,374

7,065,059

6,561,824

Total liabilities

147,695

127,828

481,832

Working capital

5,182,580

6,882,731

6,079,992

Expenses

1,567,475

1,596,161

5,358,578

Net loss

(1,567,475

(1,596,161)

(5,358,578)

Net loss per share, fundamental and diluted

(0.08)

(0.10)

(0.45)

North Peak Resources Ltd. Management’s Discussion and Analysis For the Year Ended December 31, 2021 Expressed in Canadian Dollars

The firm continues to guage additional mining properties, which fulfil its key standards of focusing on historic mining belongings with strategic exploration potential at an acceptable acquisition worth.

Selected Annual Information

The Company reported a web lack of $1,567,475 for the 12 months ended December 31, 2021, in contrast with a loss for the 12 months ended December 31, 2020 of $1,596,161.

The reported loss consists primarily of the next:

  • Contractor charges of $117,007 for the 12 months ended December 31, 2021, rising from $41,274 throughout within the comparative 12 months ended December 31, 2020, with the variance attributable to the wind down of software program improvement initiatives within the comparative interval, and the engagement of operational consultants throughout the 12 months ended December 31, 2021.

  • Travel bills declined to $56,926 throughout the 12 months ended December 31, 2021, down from $94,326 throughout the 12 months ended December 31, 2020. Travel bills consisted of selling and govt journey, which declined initially throughout the COVID19 international pandemic and have begun to extend as journey restrictions ease.

  • Professional charges had been $156,188 throughout the 12 months ended December 31, 2021, down from $324,917 for the 12 months ended December 31, 2020, representing authorized prices related to basic company issues whereas the comparative interval included authorized prices related to the repositioning of the enterprise.

  • During the 12 months ended December 31, 2021, the Company incurred exploration bills of $218,759, consisting of $1,890 in geological charges, $1,613 in environmental charges, assay prices of $3,407 and drilling prices of $115,610 associated to the Leahy property (12 months ended December 31, 2020 preliminary geological bills of $13,982). The Company additionally incurred exploration bills of $21,777 on the Black Horse Project, consisting of $17,674 in mapping charges, $2,683 in environmental charges, and challenge administration charges of $1,420 (12 months ended December 31, 2020 $nil). Additionally, the Company incurred $74,462 in prices associated to the investigation of potential properties (12 months ended December 31, 2020 – $95,186).

  • Stock-based compensation elevated to $542,620 for the 12 months ended December 31, 2021 from $407,755 within the comparative interval. The variance over the comparative interval is pushed by the termination of sure staff and consultants, leading to a credit score to inventory based mostly compensation of $197,014 in fiscal 2020, representing the worth of the unvested portion of the expired choices. This was partially offset by the graded vesting of an choice grant to administrators, officers and consultants in July 2020. During fiscal 2021, the Company issued 505,000 choices (12 months ended December 31, 2020 1,350,000), with fiscal 2021 seeing elevated market pricing of the Company inventory, leading to a larger worth being assigned to every choice relative to the comparative 12 months.

  • Office and basic bills remained constant at $658,219 for the 12 months ended December 31, 2021, from $681,528 for the 12 months ended December 31, 2020.

  • Interest revenue declined to $33,261 within the 12 months ended December 31, 2021 from $55,905 for the 12 months ended December 31, 2020, representing curiosity earned from declining rates of interest and invested balances on the Company’s money accounts.

  • On February 24, 2021, the Company offered 4 (4) United States issued patents, ongoing associated patent purposes in China and associated improvement work to Helix Applications Inc. (“Helix“). The Company ready and utilized for these patents previous to its present standing as a mining exploration firm, as a part of a broader utility for the know-how it was creating on the time inside the blockchain sector. As a part of the transaction, North Peak acquired $150,000 and a 5% royalty on any income generated by Helix and its associates from any business purposes

North Peak Resources Ltd. Management’s Discussion and Analysis For the Year Ended December 31, 2021 Expressed in Canadian Dollars

derived from the patents that Helix might develop because it seeks to guage the rising curiosity within the networks of digital token economics. Accordingly, the Company has acknowledged a acquire on disposition of patents of $150,000 on its condensed interim consolidated assertion of loss and complete loss for the 12 months ended December 31, 2021. There had been no such tendencies within the comparative interval.

Summary of Quarterly Results

For the Period Ended

Revenue

($)

Net (Loss) Income

Total belongings

($)

Total ($)

Basic and diluted earnings per share

($)

2021 December 31

Nil

(765,727)

(0.04)

8,982,068

2021 September 30

Nil

(348,612)

(0.02)

6,983,024

2021 June 30

Nil

(265,532)

(0.01)

7,294,293

2021 March 31

Nil

(187,604)

(0.01)

7,521,168

2020 December 31

Nil

(468,082)

(0.03)

7,065,059

2020 September 30

Nil

(750,854)

(0.04)

6,855,530

2020 June 30

Nil

(401,724)

(0.03)

7,178,571

2020 March 31

Nil

24,499

(0.00)

7,609,757

Three Months Ended December 31, 2021 vs Three Months Ended December 31, 2020

The Company reported a web lack of $765,727 for the three months ended September 30, 2021, in contrast with a loss for the three months ended December 31, 2020 of $468,082.

The reported loss consists primarily of the next:

  • Contractor charges of $101,844 for the three months ended December 31, 2021, in comparison with a restoration of $9,582, throughout within the comparative three months ended December 31, 2020. The variance attributable to the wind down of software program improvement initiatives within the comparative interval, and the engagement of operational consultants throughout the 12 months ended December 31, 2021.

  • Travel bills elevated to $37,711 throughout the three months ended December 31, 2021, up from $6,385 throughout the three months ended December 31, 2020. Travel bills consisted of selling and govt journey, which declined throughout the COVID19 international pandemic, recovering as journey restrictions eased.

  • Professional charges had been $53,730 throughout the three months ended December 31, 2021, down from $8,600 for the three months ended December 31, 2020, representing authorized prices related to basic company issues whereas the comparative interval included authorized prices related to the repositioning of the enterprise.

  • During the three months ended December 31, 2021, the Company incurred exploration bills of $28,320, consisting of $6,544 in drilling prices associated to the Leahy property (three months ended

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Disclaimer

North Peak Resources Ltd. printed this content material on 03 May 2022 and is solely accountable for the knowledge contained therein. Distributed by Public, unedited and unaltered, on 03 May 2022 19:54:07 UTC.

Publicnow 2022

All information about NORTH PEAK RESOURCES LTD.

Sales 2020

Net revenue 2020 -1,60 M
-1,24 M
-1,24 M
Net money 2020 6,85 M
5,33 M
5,33 M
P/E ratio 2020 -5,71x
Yield 2020
Capitalization 37,2 M
29,0 M
29,0 M
EV / Sales 2019
EV / Sales 2020
Nbr of Employees
Free-Float 90,5%

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