The Keg Royalties Income Fund Announces Second Quarter 2025 Results
VANCOUVER, British Columbia, Aug. 13, 2025 (GLOBE NEWSWIRE) — The Keg Royalties Income Fund (the 'Fund') (TSX: KEG.UN) is pleased to announce its financial results for the three months ended June 30, 2025 (the 'quarter') and the six months ended June 30, 2025 ('YTD').
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Toronto Star
35 minutes ago
- Toronto Star
Cornish Metals Releases Unaudited Financial Statements and Management's Discussion and Analysis for the Six Months Ended 30 June 2025
VANCOUVER, British Columbia, Aug. 14, 2025 (GLOBE NEWSWIRE) — Cornish Metals Inc. (TSX-V/AIM: CUSN) ('Cornish Metals' or the 'Company'), a mineral exploration and development company focused on advancing its wholly owned and permitted South Crofty tin project in Cornwall, United Kingdom, is pleased to announce that it has released its unaudited financial statements and management, discussion and analysis ('MD&A') for the six months ended June 30, 2025. The reports are available under the Company's profile on SEDAR+ ( and on the Company's website (
Toronto Star
35 minutes ago
- Toronto Star
Q2 2025 Financial Results
Reykjavík, Aug. 14, 2025 (GLOBE NEWSWIRE) — ('Amaroq' or the 'Company') Q2 2025 Financial Results Maiden revenue and g ood operational progress across all commissioning activities at Nalunaq gold mine TORONTO, ONTARIO – 14 August 2025 – Amaroq Ltd. (AIM, TSX-V, NASDAQ Iceland: AMRQ, OTCQX: AMRQF), an independent mine development corporation focused on unlocking Greenland's mineral potential, is pleased to announce its Q2 2025 Financial Results. All dollar amounts are expressed in Canadian dollars unless otherwise noted. A remote presentation for analysts and investors will be held later today at 9:30am BST, details of which can be found further down in this announcement. ARTICLE CONTINUES BELOW Eldur Olafsson, CEO of Amaroq, commented: 'I am pleased to report good progress across all of the commissioning activities at our Nalunaq mine, as we continued the trial mining, on-going construction and commissioning of the processing plant, development of essential infrastructure, as well as stabilization of process plant operating activities. By the end of Q2-25, we had reached two significant milestones, with the first shipment and export of gold doré bars and the associated maiden revenue from operations of C$ 3.4 million. In terms of commissionin g progress, I am very encouraged that in Q2-25, we achieved an average of 3.6x more processing throughput versus Q1-25 and mining ore production was 2.6x better in Q2-25 versus Q1-25. I am pleased to note that this trend has continued in the third quarter, with a further 36kg of doré bars in the safe at site, at the time of writing. ' In June 2025, we successfully completed a n oversubscribed and upsized £45 million equity fundraise, following significant reverse interest from international institutional investors. Alongside the fundraise we announced the acquisition of the West Greenland Hub, a new mining province for the Company in Greenland. The West Greenland Hub contains the previously producing Black Angel mine and Kangerluarsuk licences and crystallises our position as the largest acreage holder in Greenland, as well as geographically diversifying our operations into this highly prospective new area in the north west of Greenland. ' With good commissioning progress to date, coupled with the flexibility provided by the enhanced liquidity position following the upsized fundraise; management have decided to bring forward certain construction and commissioning activities for the installation of the flotation recovery (Phase 2) systems, into Q3 and Q4 2025. This will require a period of shut down at the processing facility to accommodate these activities but will enable critical work to be completed before w inter, when operating conditions are more challenging, however mining will continue as normal. Once completed, the processing facility will be calibrated to higher recovery rates, enabling higher cash generation from the facility, which will be further enhanced once it is running at the nameplate throughput of 300 t/d, which remains our target by year end 2025. The additional proposed construction and commissioning activities in Q3 and Q4-25 means we are ta rgeting production for the yea r of approximately 5koz of gold for the full year 2025. ' During the Period, we also completed the planning and scheduling for all o f our seasonal exploration field work activities across the gold and strategic mineral asset base, this includes a comprehensive, multi-rig drilling programme at Nalunaq, targeting continued resource expansion, with up to 3,500 metres of surface drilling and near-continuous underground drilling planned, as well as at Nanoq, the analogous gold prospect east of Nalunaq within the Nanortalik gold belt, with approximately 5,000 metres of core drilling to advance towards a maiden Mineral Resource Estimate, as well as operations to expand our understanding across existing and new satellite gold targets within the Nanortalik gold belt. ' Q2 2025 Corporate Highlights Maiden revenue of $3.4 million in Q2 2025, following the first commercial sale of gold doré bars from the Nalunaq mine. Successfully completed an oversubscribed and upsized equity fundraise in June 2025, raising gross proceeds of approximately £45.0 million. In June 2025, Amaroq announced the proposed acquisitions of the past producing Black Angel mine and Kangerluarsuk licences to create a West Greenland Hub. In May 2025, Amaroq signed a non-binding heads of terms with JLE Group Ltd to establish a special purpose vehicle and create a joint venture company to be called Suliaq ApS, dedicated to the provision of essential services, supplies and supporting assets to Greenland's growing mining sector and wider economy. Amaroq group liquidity of $75.0 million, at period end, consisting of cash balances of $86.0 million, an undrawn revolving credit facility of $8.9 million less trade payables of $19.8 million ($23.4 million as at 31 March 2025). Maiden revenue of $3.4 million in Q2 2025, following the first commercial sale of gold doré bars from the Nalunaq mine. Successfully completed an oversubscribed and upsized equity fundraise in June 2025, raising gross proceeds of approximately £45.0 million. In June 2025, Amaroq announced the proposed acquisitions of the past producing Black Angel mine and Kangerluarsuk licences to create a West Greenland Hub. In May 2025, Amaroq signed a non-binding heads of terms with JLE Group Ltd to establish a special purpose vehicle and create a joint venture company to be called Suliaq ApS, dedicated to the provision of essential services, supplies and supporting assets to Greenland's growing mining sector and wider economy. Amaroq group liquidity of $75.0 million, at period end, consisting of cash balances of $86.0 million, an undrawn revolving credit facility of $8.9 million less trade payables of $19.8 million ($23.4 million as at 31 March 2025). Q2 2025 Operational Highlights Completion of first commercial shipments and export of doré bars containing 808 ounces of gold. Gold doré bars containing 724 ounces of gold were shipped to a refinery facility in Switzerland, and subsequently sold to Auramet for gross proceeds of $[3.4] million. The Company further shipped 84 ounces of gold to a specialised refinery in the UK for further refining and accreditation as Single Mine Origin ('SMO') gold, which will be available for purchase by the local Greenlandic population and jewellery makers. In May 2025, Amaroq announced the results of its successful 2024 exploration results across the Company's strategic minerals portfolio JV, Gardaq AS. Operations at Nalunaq continue to ramp up and remain on track to reach nameplate processing capacity of 300 t/d by the end of the year. Commissioning and Outlook Highlights Significant operational progress throughout Q2-25 has continued into Q3-25. With continued up-time in mine development rates and processing throughput of ~145 t/d in July 2025 on a single shift due to continued construction and commissioning work, the Company continues to target a run rate production of 300 t/d by the end of 2025. Enhanced liquidity post fundraise has enabled the Company to bring forward certain construction and commissioning activities for the installation of flotation recovery (Phase 2) into the third quarter of 2025, which will require a short period of shut down at the processing facility, however mining will continue as normal. Once these activities are completed the processing facility will be calibrated to higher recovery rates, enabling higher cash generation from the facility, which will be further enhanced once it is running at nameplate throughput of 300 t/d. As a result of having the flexibility to bring forward this Phase 2 work, and the subsequent period of shut down, the Company is targeting full year production of approximately 5koz for the full year 2025. Post Period Corporate Highlights On 1 July 2025, Amaroq commenced trading on the OTCQX, enabling higher transparency and trading opportunities for investors in the U.S. In July 2025, Amaroq commenced its 2025 exploration campaign, one of the most ambitious and wide-ranging programs in Amaroq's history. On 15 July 2025, the Company changed its name from 'Amaroq Minerals Ltd.' to 'Amaroq Ltd.' At Nanoq, a large multi-rig programme was mobilised post period end, with operations commencing in August 2025. This programme will include the construction of a ~40-person camp. Post period, Amaroq published its inaugural Sustainability Report, highlighting the Company's commitment to responsible development across four key areas: corporate governance, our environment, our people, and our community. The report is available on the Company's website at Services and Renewable Energy business lines Alongside the Company's focus on its two key pillars of mining development and exploration, below is an update on the two mining associated business units: Suliaq ApS - During Q2-25, the Company incorporated a subsidiary entity called Suliaq ApS in order to create a standalone business which will look to take advantage of the increased interest in mining and infrastructure in Greenland, through the provision of Amaroq's equipment and services, generating additional revenue. In addition, on 28 May 2025, the Company signed a non-binding head of terms with JLE, whereby JLE will invest £4.0 million, by way of an equity contribution in exchange for a 10% shareholding in the subsidiary company, with Amaroq holding 90%. JLE has the option to increase its investment up to a total of £12.0 million, structured in additional tranches of £4.0 million, which will result in proportional increases in JLE's equity stake in the company. During the second half of 2025 a Board and management team will be put in place and initial contracts for the rental of equipment and services to third parties and other companies controlled by the Company, will be finalised. Renewable energy generation – Power generation and energy provision are some of the most expensive and polluting cost items within remote mining operations. To de-risk the future life of mine at Nalunaq, whilst at the same time investing in technologies to power the future mines, the Corporation is in advanced plans for the construction of at least one mega watt ('MW') of hydro power, within close proximity of Nalunaq. During the second half of 2025, following the request for the trial pit investigation licence in July 2025, designs will be finalised and tenders for turbine, generator, transformer, powerhouse & penstock will be solicited, ahead of the publication of the prefeasibility report and application for the project to take place within the existing Nalunaq Mine Plan framework by the end of 2025, allowing for construction and power generation in 2026. It is anticipated that by year end 2025, the hydro electric business will be formally incorporated in Greenland, under the name IMEQ ApS. Strategic Acquisitions and West Greenland Hub Further to the announcement on 11 June 2025, the Company has signed the asset purchase agreement for the acquisition of the Kangerluarsuk licences from 80 Mile plc (and Disko Exploration Ltd). Preparations for completion are underway. For the Black Angel transaction with FBC Mining (BA) Limited, which includes the former producing mine and associated infrastructure, the parties are progressing the agreed conditions precedent. On completion, these acquisitions will form the West Greenland Hub as previously outlined. Update on Impact Benefit Agreement Additionally, the Company provides an update on the progress of the Impact Benefit Agreement (IBA). Amaroq has been actively working in collaboration with the Government of Greenland and Kommune Kujalleq to advance the IBA. However, due to the Government of Greenland's need to address competing priorities, and in recognition of these circumstances, an extension of the deadline to 31 December 2025 has been agreed. Amaroq remains fully committed to its collaborative approach to ensure the IBA reflects the shared objectives of all parties. This delay to the formalization of the IBA will not impact current and future operations. Details of conference call A conference call for analysts and investors will be held this morning at 9:30am BST, including a management presentation and Q&A session. To join the meeting, please register at the below link: Financial Results Period ended June 30, 2025 Six months Six months 2025 2024 $ $ Financial Results Revenue 3,445,308 - Cost of Sale (3,874,670) - Selling, refining and royalty costs (196,203) - Gross loss (625,565) - Exploration and evaluation expenses (725,983) (748,040) General and administrative expenses (9,517,159) (8,294,917) Gain on lease modification 30,543 - Foreign exchange gain (loss) 1,718,627 435,012 Interest income 120,243 41,192 Gardaq project management fees 1,257,538 1,214,894 Share of net losses of joint arrangement (714,208) (1,909,817) Unrealised gain (loss) on derivative liability - 5,291,615 Finance costs (1,281,497) (18,132) Net loss and comprehensive loss (10,044,723) (3,988,193) Basic and diluted loss per share (0.025) (0.013) Financial Position As at June 30, 2025 December 31, 2024 $ $ Financial Position Cash 86,010,495 45,193,670 Inventory 15,213,555 10,182,744 Investment in equity-accounted joint arrangement 14,188,105 14,902,313 Total assets 342,020,663 255,976,986 Total current liabilities 60,170,699 46,973,753 Total non-current liabilities 8,075,788 7,845,657 Shareholders' equity 273,774,176 201,157,576 Working capital (before convertible notes liability and loan payable) 99,470,230 47,525,515 Working capital (loan payable included) 59,221,096 18,903,783 Gold business liquidity 75,040,966 50,860,477 Enquiries: Amaroq Ltd. Eldur Olafsson, Executive Director and CEO eo@ Ed Westropp, Head of BD and Corporate Affairs +44 (0)7385755711 ewe@ Eddie Wyvill, Corporate Development +44 (0)7713 126727 ew@ Panmure Liberum Limited (Nominated Adviser and Corporate Broker) Scott Mathieson Nikhil Varghese +44 (0) 20 7886 2500 Canaccord Genuity Limited (Corporate Broker) James Asensio Harry Rees Tel: +44 (0) 20 7523 8000 Camarco (Financial PR) Billy Clegg Elfie Kent Fergus Young +44 (0) 20 3757 4980 amaroq@ For Company updates: Follow @Amaroq X (Formerly known as Twitter) Follow Amaroq Ltd. on LinkedIn Further Information: About Amaroq Amaroq's principal business objectives are the identification, acquisition, exploration, and development of gold and strategic metal properties in South Greenland. The Company's principal asset is a 100% interest in the Nalunaq Gold mine. The Company has a portfolio of gold and strategic metal assets in Southern Greenland covering the two known gold belts in the region as well as advanced exploration projects at Stendalen and the Sava Copper Belt exploring for Strategic metals such as Copper, Nickel, Rare Earths and other minerals. Amaroq is continued under the Business Corporations Act (Ontario) and wholly owns Nalunaq A/S, incorporated under the Greenland Companies Act. 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. Glossary Au gold g grams g/t grams per tonne km kilometres koz thousand ounces m meters MRE3 Mineral Resource Estimate 2022 MRE4 Mineral Resource Estimate 2024 oz ounces t tonnes t/d Tonnes per day t/m3 tonne per cubic meter USD/ozAu US Dollar per ounce of gold Inside Information This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 on Market Abuse ('UK MAR'), as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, and Regulation (EU) No. 596/2014 on Market Abuse ('EU MAR'). Qualified Person Statement The technical information presented in this press release has been approved by James Gilbertson CGeol, VP Exploration for Amaroq Ltd. and a Chartered Geologist with the Geological Society of London, and as such a Qualified Person as defined by NI 43-101. Amaroq Ltd. UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2025 The attached financial statements have been prepared by Management of Amaroq Ltd. and have not been reviewed by the auditor As at June 30, As at December 31, Notes 2025 2024 $ $ ASSETS Current assets Cash 86,010,495 45,193,670 Sales tax receivable 137,327 163,611 Prepaid expenses and others 3 10,203,201 10,223,447 Interest receivable 107,500 114,064 Financial Asset - Related Party 6,18 7,719,717 - Inventory 4 15,213,555 10,182,744 Total current assets 119,391,795 65,877,536 Non-current assets Deposit 178,541 181,871 Escrow account for closure obligations 5 7,298,682 6,799,104 Financial Asset - Related Party 6,18 - 6,699,179 Investment in equity accounted joint arrangement 6 14,188,105 14,902,313 Mineral properties 7 48,683 48,683 Right of use asset 11.1 107,433 621,826 Capital assets 8 200,807,424 160,846,474 Total non-current assets 222,628,868 190,099,450 TOTAL ASSETS 342,020,663 255,976,986 LIABILITIES AND EQUITY Current liabilities Accounts payable and accrued liabilities 9 19,843,329 18,233,113 Loans payable 10 40,249,134 28,621,732 Lease liabilities – current portion 11 78,236 118,908 Total current liabilities 60,170,699 46,973,753 Non-current liabilities Lease liabilities 11 74,609 591,805 Asset retirement obligation 12 8,001,179 7,253,852 Total non-current liabilities 8,075,788 7,845,657 Total liabilities 68,246,487 54,819,410 Equity Capital stock 13 373,477,993 291,169,401 Contributed surplus 8,361,946 8,009,215 Accumulated other comprehensive loss (36,772) (36,772) Deficit (108,028,991) (97,984,268) Total equity 273,774,176 201,157,576 TOTAL LIABILITIES AND EQUITY 342,020,663 255,976,986 Subsequent events 21 The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. Three months ended June 30, Six months ended June 30, Notes 2025 2024 2025 2024 $ $ $ $ Revenue Revenue 3,445,308 - 3,445,308 - Cost of Sales (3,874,670) - (3,874,670) - Selling, refining and royalty costs (147,851) - (196,203) - Gross loss (577,213) - (625,565) - Expenses Exploration and evaluation expenses 15 (532,563) 127,173 (725,983) (748,040) General and administrative 16 (4,890,837) (4,335,691) (9,517,158) (8,294,917) Foreign exchange gain 1,127,017 514,521 1,718,627 435,012 Operating loss (4,873,596) (3,693,997) (9,150,079) (8,607,945) Other income (expenses) Interest income 93,937 25,866 120,243 41,192 Gardaq Project management fees 18.1 613,985 578,568 1,257,538 1,214,894 Gain on lease modification - - 30,543 - Loss on liability derecognition (307,263) - (307,263) - Share of net loss of joint arrangement 6 (343,865) (1,263,385) (714,208) (1,909,817) Unrealized gain on derivative liability - 9,591,828 - 5,291,615 Finance costs 17 (829,224) (9,558) (1,281,497) (18,132) Net income (loss) and comprehensive income (loss) (5,646,026) 5,229,322 (10,044,723) (3,988,193) Weighted average number of common shares outstanding – basic 403,008,869 326,825,939 400,371,106 308,700,211 Weighted average number of common shares outstanding – diluted 403,008,869 364,748,474 400,371,106 308,700,211 Basic earning (loss) per common share 19 (0.014) 0.016 (0.025) (0.013) Diluted earning (loss) per common share 19 (0.014) 0.014 (0.025) (0.013) Effect of dilution - 0.002 - - The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. Amaroq Ltd. Consolidated Statements of Changes in Equity (Unaudited, in Canadian Dollars) Notes Number of common shares outstanding Capital Stock Contributed surplus Accumulated other comprehensive loss Deficit Total Equity $ $ $ $ $ Balance at January 1, 2024 263,670,051 132,117,971 6,725,568 (36,772) (74,528,130) 64,278,637 Net loss and comprehensive loss - - - - (3,988,193) (3,988,193) Shares issued under a fundraising 62,724,758 75,574,600 - - - 75,574,600 Shares issuance costs - (1,218,285) - - - (1,218,285) Options exercised, net 1,023,918 728,073 (745,500) - - (17,427) Stock-based compensation - - 736,413 - - 736,413 Balance at June 30, 2024 327,418,727 207,202,359 6,716,481 (36,772) (78,516,323) 135,365,745 Balance at January 1, 2025 397,702,330 291,169,401 8,009,215 (36,772) (97,984,268) 201,157,576 Net loss and comprehensive loss - - - - (10,044,723) (10,044,723) Shares issued under a fundraising 13.2 52,986,036 84,519,844 - - - 84,519,844 Shares issuance costs 13.2 - (3,333,698) - - - (3,333,698) Restricted shares vested 14.2 3,329,704 1,058,191 (1,058,191) - Options exercised, net 14.1 88,583 64,255 (64,255) - - - Stock-based compensation 14 - - 1,475,177 - - 1,475,177 Balance at June 30, 2025 454,106,653 373,477,993 8,361,946 (36,772) (108,028,991) 273,774,176 The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. Six months ended June 30, Notes 2025 2024 $ $ Operating activities Net loss for the period (10,044,723) (3,988,193) Adjustments for: Depreciation 8 422,405 347,881 Amortisation of ROU asset 11.1 39,742 53,340 Stock-based compensation 14 1,475,177 736,413 Accretion of discount on asset retirement obligation 12 586,837 - Unrealized (gain) loss on derivative liability - (5,291,615) Share of net losses of joint arrangement 6 714,208 1,909,817 Gain on lease modification (30,543) - Other expenses - (17,427) Foreign exchange (1,952,216) (667,577) Finance costs 308,353 18,132 (8,480,760) (6,899,229) Changes in non-cash working capital items: Sales tax receivable 26,284 (130,033) Due from related party 6,18 (1,264,292) (1,390,557) Prepaid expenses and others (76,057) (8,015,367) Inventory (5,030,811) - Deposit 3,330 - Accounts payable and accrued liabilities 1,459,638 2,100,537 (4,881,908) (7,435,420) Cash flow used in operating activities (13,362,668) (14,334,649) Investing activities Transfer to escrow account for closure obligations - (5,066,193) Construction in progress and acquisition of capital assets 8 (37,916,356) (45,078,383) Prepayment for acquisition of ROU asset - (5,825) Deposit - (150,000) Cash flow used in investing activities (37,916,356) (50,300,401) Financing activities Proceeds from issuance of shares 13 84,519,844 75,574,600 Proceeds from loan - net of transaction cost 10 10,679,345 - Shares issuance costs 13 (3,333,698) (1,218,285) Lease payments 11 (63,072) (63,932) Cash flow from financing activities 91,802,419 74,292,383 Net change in cash before effects of exchange rate changes on cash during the period 40,523,395 9,657,333 Effects of exchange rate changes on cash 293,430 991,238 Net change in cash during the period 40,816,825 10,648,571 Cash, beginning of period 45,193,670 21,014,633 Cash, end of period 86,010,495 31,663,204 Supplemental cash flow information Borrowing costs capitalised to capital assets 8 2,306,509 2,569,838 ROU assets acquired through lease 11.1 - 155,214 Shares issued as a result of restricted shares vested 1,058,191 - The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. 1. NATURE OF OPERATIONS, BASIS OF PRESENTATION AND GOING CONCERN Amaroq Ltd. (the 'Corporation') (previously known as Amaroq Minerals Ltd.) was incorporated on February 22, 2017, under the Canada Business Corporations Act. As of June 19, 2024, the Corporation completed its continuance from the Canada Business Corporations Act into the Province of Ontario under the Business Corporations Act (Ontario). The Corporation's head office is situated at 100 King Street West, Suite 3400, First Canadian Place, 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'). Since July 2020, the Corporation's shares are also listed on the AIM market of the London Stock Exchange ('AIM') and from November 1, 2022, on Nasdaq First North Growth Market Iceland which were transferred on September 21, 2023 on Nasdaq Main Market Iceland ('Nasdaq') under the AMRQ ticker. Since July 2025, the Corporation's shares trade on the OTCQX ® Best Market ('OTCQX') in the United States of America under the AMRQF ticker. These unaudited condensed interim consolidated financial statements for the six months ended June 30, 2025 ('Financial Statements') were reviewed and authorized for issue by the Board of Directors on August 14, 2025. 1.1 Basis of presentation and consolidation The Financial Statements include the accounts of the Corporation and those of its subsidiary Nalunaq A/S, corporation incorporated under the Greenland Public Companies Act, owned at 100%. The Financial Statements also include the Corporation's 51% equity share of Gardaq A/S, a joint venture with GCAM LP (Note 6). The Financial Statements have been prepared in accordance with International Financial Reporting Standards and International Accounting Standards as issued by the International Accounting Standards Board and interpretations (collectively IFRS Accounting Standards) including International Accounting Standard ('IAS') 34, Interim Financial Reporting. The Financial Statements have been prepared on the historical cost basis, except for financial instruments at fair value. 1.2 Accounting policies The Financial Statements should be read in conjunction with the audited annual financial statements for the year ended December 31, 2024, 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, 2024, except as for the implementation of IFRS 15 during the six months ended June 30, 2025 as a result of the Corporation commencing gold sales. The Corporation recognises revenue from the sale of gold when control of gold has transferred to the customer and the performance obligations are satisfied, which occurs when legal title and the significant risks and rewards of ownership have passed to the customer and the Corporation has no continuing managerial involvement with the goods. 1.3 Going concern The Financial Statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Corporation is transitioning from development to production at its flagship Nalunaq project. While initial commissioning activities have commenced, the Corporation has not yet generated significant revenues and continues to incur development and operating costs. The ability of the Corporation to continue as a going concern is dependent upon the successful ramp-up of production and achievement of positive operating cash flows to fund ongoing operations and capital commitments. 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 past 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, 2024. 3. PREPAID EXPENSES AND OTHERS As at June 30, 2025 As at December 31, 2024 $ $ Advance payments to suppliers and mining contractors 7,323,324 9,116,763 Other prepayments 2,879,877 1,106,684 Total prepaid expenses and others 10,203,201 10,223,447 The Corporation's prepaid expenses and others mainly consist of downpayments to vendors and contractors involved in the supply of drilling rigs and consumables, process plant equipment, infrastructure and mine development work. 4. INVENTORY As at June 30, 2025 As at December 31, 2024 $ $ Ore stockpile 5,738,649 2,849,035 Gold-in-circuit 3,418,062 - Total precious metals inventory 9,156,711 2,849,035 Supplies and spare parts 4,583,537 2,028,116 Purchases in transit 1,473,307 5,305,593 Total inventory 15,213,555 10,182,744 Purchases in transit include spare parts, consumables and equipment. 5. ESCROW ACCOUNT FOR CLOSURE OBLIGATIONS On behalf of Nalunaq's licence holder, an escrow account has been set up with the holder of the licence as holder of the account and the Government of Greenland as beneficiary. The funds in the escrow account have been provided in favour of the Government of Greenland as security for fulfilling the closure obligations following the closure of the Nalunaq mine after operations are finished (note 12). As at June 30, 2025 As at December 31, 2024 $ $ Balance beginning 6,799,104 598,939 Additions - 6,044,555 Effect of foreign exchange 499,578 155,610 Balance ending 7,298,682 6,799,104 Non-current portion – escrow account for closure obligations (7,298,682) (6,799,104) Current portion – escrow account for closure obligations - - 6. INVESTMENT IN EQUITY ACCOUNTED JOINT ARRANGEMENT As at June 30, 2025 As at December 31, 2024 $ $ Balance at beginning of period 14,902,313 23,492,811 Share of joint venture's net losses (714,208) (8,590,498) Balance at end of period 14,188,105 14,902,313 Original investment in Gardaq ApS 7,422 7,422 Transfer of non-gold strategic minerals licences at cost 36,896 36,896 Investment at conversion of Gardaq ApS to Gardaq A/S 55,344 55,344 Gain on FV recognition of equity accounted investment in joint venture 31,285,536 31,285,536 Investment retained at fair value- 51% share 31,385,198 31,385,198 Share of joint venture's cumulative net losses (17,197,093) (16,482,885) Balance at end of period 14,188,105 14,902,313 6. INVESTMENT IN EQUITY ACCOUNTED JOINT ARRANGEMENT (CONT'D) The following tables summarize the unaudited financial information of Gardaq A/S. As at June 30, 2025 As at December 31, 2024 $ $ Cash and cash equivalent 3,566,275 4,819,296 Prepaid expenses and other 640,894 105,054 Total current assets 4,207,169 4,924,350 Mineral property 117,576 117,576 Total assets 4,324,745 5,041,926 Accounts payable and accrued liabilities 77,883 415,194 Financial liability - related party 7,719,717 6,699,179 Total liabilities 7,797,600 7,114,373 Capital stock 30,246,937 30,246,937 Deficit (33,719,792) (32,319,384) Total equity (3,472,855) (2,072,447) Total liabilities and equity 4,324,745 5,041,926 For the six months ended June 30, 2025 2024 $ $ Exploration and Evaluation expenses (537,507) (2,799,464) Interest income 490 4,640 Foreign exchange gain 410,219 369,405 Operating loss (126,798) (2,425,419) Other expenses (1,273,611) (1,319,319) Net loss and comprehensive loss (1,400,409) (3,744,738) 6. INVESTMENT IN EQUITY ACCOUNTED JOINT ARRANGEMENT (CONT'D) 6.1 Financial Asset – Related Party Subject to a Subscription and Shareholder Agreement dated 13 April 2023, the Corporation undertakes to subscribe to two ordinary shares in Gardaq (the 'Amaroq shares') at a subscription price of GBP 5,000,000 no later than 10 business days after the third anniversary of the completion of the subscription agreement. Amaroq's subscription will be completed by the conversion of Gardaq's related party balance into equity shares. Gardaq's related party payable balance consists of overhead, management, general and administrative expenses payable to the Corporation. In the event that the related party payable balance is less than GBP 5,000,000, the Corporation shall, no later than 10 business days after the third anniversary of Completion: a) subscribe to one Amaroq share by conversion of the amount payable to the Corporation, b) subscribe to one Amaroq share at a subscription price equal to GBP 5,000,000 less the amount payable to the Corporation In the event that the amount payable to the Corporation exceeds GBP 5,000,000, the Corporation shall subscribe to the Amaroq shares at a subscription price equal to GBP 5,000,000 by conversion of GBP 5,000,000 of the amount due from Gardaq. Gardaq shall not be liable to repay any of the balance payable to the Corporation that exceeds GBP 5,000,000 (equivalent to CAD 9,360,450 as at June 30, 2025). During the six months ended June 30, 2025, the Corporation reclassified the financial asset as a current asset since the amount will be settled during April 2026. As a result, an amount of $7,719,717 is classified as a current asset as at June 30, 2025 ($6,699,179 classified as non-current as at December 31, 2024). 7. MINERAL PROPERTIES As at December 31, 2024 Additions As at June 30, 2025 $ $ $ Nalunaq – Au 1 - 1 Tartoq – Au 18,431 - 18,431 Vagar – Au 11,103 - 11,103 Nuna Nutaaq – Au 6,076 - 6,076 Anoritooq – Au 6,389 - 6,389 Siku – Au 6,683 - 6,683 Total mineral properties 48,683 - 48,683 As at December 31, 2023 Transfers As at June 30, 2024 $ $ $ Nalunaq – Au 1 - 1 Tartoq – Au 18,431 - 18,431 Vagar – Au 11,103 - 11,103 Nuna Nutaaq – Au 6,076 - 6,076 Anoritooq – Au 6,389 - 6,389 Siku – Au 6,821 (138) 6,683 Total mineral properties 48,821 (138) 48,683 8. CAPITAL ASSETS Field equipment and infrastructure Vehicles and rolling stock Equipment (including software) Construction in progress Total $ $ $ $ $ Six months ended June 30, 2025 Opening net book value 1,339,006 4,545,572 46,571 154,915,325 160,846,474 Additions - - - 40,383,355 40,383,355 Depreciation (99,187) (301,647) (21,571) - (422,405) Closing net book value 1,239,819 4,243,925 25,000 195,298,680 200,807,424 Field equipment and infrastructure Vehicles and rolling stock Equipment (including software) Construction in progress Total $ $ $ $ $ As at June 30, 2025 Cost 2,351,042 6,197,074 232,231 195,298,680 204,079,027 Accumulated depreciation (1,111,223) (1,953,149) (207,231) - (3,271,603) Closing net book value 1,239,819 4,243,925 25,000 195,298,680 200,807,424 Field equipment and infrastructure Vehicles and rolling stock Equipment (including software) Construction In progress Total $ $ $ $ $ December 31, 2024 Opening net book value 1,537,379 3,312,118 108,822 33,283,240 38,241,559 Additions - 1,941,750 138 121,632,085 123,573,973 Disposals - (149,916) - - (149,916) Depreciation (198,373) (558,380) (62,389) - (819,142) Closing net book value 1,339,006 4,545,572 46,571 154,915,325 160,846,474 Field equipment and infrastructure Vehicles and rolling stock Equipment (including software) Construction In progress Total $ $ $ $ $ As at December 31, 2024 Cost 2,351,042 6,197,074 232,231 154,915,325 163,695,672 Accumulated depreciation (1,012,036) (1,651,502) (185,660) - (2,849,198) Closing net book value 1,339,006 4,545,572 46,571 154,915,325 160,846,474 8. CAPITAL ASSETS (CONT'D) Depreciation of capital assets 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 $51,223 ($316,879 for the six months ended June 30, 2024) was expensed as exploration and evaluation expenses during the six months ended June 30, 2025. During the six months ended June 30, 2025, Buildings, Equipment, Infrastructure and Vehicles and rolling stock depreciation of $349,804 ($nil for the six months ended June 30, 2024) was capitalized to construction in progress. During the first six months of 2025 the Corporation capitalised borrowing costs of $2,306,509 ($2,569,838 for the first six months of 2024) to construction in progress, which are included in additions. Borrowing costs included in the cost of construction in progress arose on the Corporation's convertible note and loan payables. Refer to note 10 for details with respect to the interest rates on these loans. 9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES As at June 30, 2025 As at December 31, 2024 $ $ Suppliers and mining contractors payable 19,222,982 17,176,818 Employee benefits payable 101,963 707,211 Other liabilities 518,384 349,084 Total accounts payable and accrued liabilities 19,843,329 18,233,113 The Corporation's accounts payable and accrued liabilities mainly consist of amounts due to vendors and contractors involved in mine development work as well as process plant construction and commissioning activities. 10. LOANS PAYABLE As at June 30, 2025 As at December 31, 2024 $ $ Balance, beginning 28,621,732 - Gross proceeds from issue - 25,087,636 Recognition of loan after note conversion - 1,286,785 Transaction costs (1,172,510) (693,272) Accretion of discount 682,164 318,238 Accrued interest 1,922,301 1,010,823 Foreign exchange gain (1,656,408) 1,611,522 Settlement of loans under cancelled facilities (27,893,960) - Proceeds from loans under new facilities 39,745,815 - Balance, ending 40,249,134 28,621,732 Non-current portion - - Current portion 40,249,134 28,621,732 10. LOANS PAYABLE (CONT'D) 10.1 Revolving Credit Facility A $25 million (US$18.5 million) Revolving Credit Facility ('RCF') was entered into with Landsbankinn hf. and Fossar Investment Bank on September 1, 2023, with a two-year term expiring on September 1, 2025 and priced at the Secured Overnight Financing Rate ('SOFR') plus 950bps. Interest is capitalized and payable at the end of the term. The RCF is denominated in US Dollars and the SOFR interest rate is determined with reference to the CME Term SOFR Rates published by CME Group Inc. The RCF carries (i) a commitment fee of 0.40% per annum calculated on the undrawn facility amount and (ii) an arrangement fee of 2.00% on the facility amount where 1.5% has been paid on the closing date of the facility and 0.50% was paid at the first draw down. The facility is not convertible into any securities of the Corporation. The facility is secured by (i) a bank account pledge from the Corporation and Nalunaq A/S, (ii) share pledges over all current and future acquired shares in Nalunaq A/S and Gardaq A/S held by the Corporation pursuant to the terms of share pledge agreements, (iii) a proceeds loan assignment agreement, (iv) a pledge agreement in respect of owner's mortgage deeds and (v) a licence transfer agreement. During May 2025, this facility was cancelled and replaced by the new facilities concluded in December 2024 (note 10.3). 10.2 Cost Overrun Facility $13.5 million (US$10 million) Revolving Cost Overrun Facility was entered into with JLE Property Ltd. on September 1, 2023, on the same terms as the Bank Revolving Credit Facility. The Overrun Facility is denominated in US Dollars with a two-year term, expiring on September 1, 2025, and will bear interest at the CME Term SOFR Rates by CME Group Inc. and have a margin of 9.5% per annum. The Overrun Facility carries a stand-by fee of 2.5% on the amount of committed funds. The Overrun Facility is not convertible into any securities of the Corporation. The Overrun Facility will be secured by (i) bank account pledge agreements from the Corporation and Nalunaq A/S, (ii) share pledges over all current and future acquired shares in Nalunaq A/S and Gardaq A/S held by the Corporation pursuant to the terms of share pledge agreements, (iii) a proceeds loan assignment agreement, (iv) a pledge agreement in respect of owner's mortgage deeds and (v) a licence transfer agreement. During May 2025, this facility was cancelled and replaced by the new facilities concluded in December 2024 (note 10.3). 10. LOANS PAYABLE (CONT'D) 10.3 US$35 million Revolving Credit Facility Heads of Terms On December 30, 2024, the Corporation closed a US$35 million debt financing package with Landsbankinn hf. in three Revolving Credit Facilities, securing a substantial increase and extension to its existing debt facilities. The financing package, upon its utilization, will replace the existing credit and cost overrun facilities. The US$35 million debt financing package with Landsbankinn consists of: US$18.5 million Facility A with a margin of 9.5% per annum, reduced to 7.5% once Facility C has become available. US$10 million Facility B with a margin of 9.5% per annum, reduced to 7.5% once Facility C has become available US $6.5 million Facility C with a margin of 7.5%, which becomes available once all other facilities have been fully drawn and the Corporation's cumulative EBITDA over the preceding three-month period exceeds CAD 6 million Facility A will be utilized to refinance the Corporation's existing revolving credit facilities entered into on 1 September 2023 (note 10.1) Facilities B and C will be applied towards working capital and general corporate purposes. These facilities involve covenants relating to EBITDA and the Corporation's equity ratio. The new facilities will have a 1.5% arrangement fee, a 0.4% commitment fee on unutilised amounts, and a termination date of December 1, 2026. The facilities are secured by a combination of a property and operational equipment mortgage, share pledge over subsidiaries, certain bank account pledges and a license transfer agreement. The financing package, upon its utilization, will replace the existing credit and cost overrun facilities. The US$35 million debt financing package with Landsbankinn consists of: US$18.5 million Facility A with a margin of 9.5% per annum, reduced to 7.5% once Facility C has become available. US$10 million Facility B with a margin of 9.5% per annum, reduced to 7.5% once Facility C has become available US $6.5 million Facility C with a margin of 7.5%, which becomes available once all other facilities have been fully drawn and the Corporation's cumulative EBITDA over the preceding three-month period exceeds CAD 6 million Facility A will be utilized to refinance the Corporation's existing revolving credit facilities entered into on 1 September 2023 (note 10.1) Facilities B and C will be applied towards working capital and general corporate purposes. These facilities involve covenants relating to EBITDA and the Corporation's equity ratio. The new facilities will have a 1.5% arrangement fee, a 0.4% commitment fee on unutilised amounts, and a termination date of December 1, 2026. The facilities are secured by a combination of a property and operational equipment mortgage, share pledge over subsidiaries, certain bank account pledges and a license transfer agreement. The use of this debt financing package is conditional upon the Corporation fulfilling certain conditions including providing security that is appropriate to the lender, discharging its existing debt under the Revolving Credit Facility (note 10.1) and cancelling its Cost Overrun Facility (note 10.2). During the month of May 2025, these facilities replaced the old 2023 facilities (note 10.1 and 10.2) and the amount of loans to be repaid as of June 30, 2025 amounts to $40,249,134. 11. LEASE LIABILITIES As at June 30, 2025 As at December 31, 2024 $ $ Balance beginning 710,713 657,440 Lease additions - 155,214 Lease payment (63,071) (138,356) Interest 10,397 36,415 Lease modification (505,194) - Balance ending 152,845 710,713 Non-current portion – lease liabilities (74,609) (591,805) Current portion – lease liabilities 78,236 118,908 The Corporation has two leases for its offices. In October 2020, the Corporation started a lease for five years and five months including five free rent months during this period. The monthly rent is $8,825 until March 2024 and $9,070 for the balance of the lease. The Corporation has the option to renew the lease for an additional five-year period at $9,070 monthly rent indexed annually to the increase of the consumer price index of the previous year for the Montreal area. During February 2025, management determined that they will not renew the lease when it expires on February 28, 2026. Furthermore, the Corporation agreed to reduce the leased area of the Montreal office lease and as a result monthly rent was reduced to $5,018 per month for the remainder of the lease term and a lease modification of $505,194 was recognized during the six-month period ended June 30, 2025. In March 2024, the Corporation started a new lease for a two-year term with the option to extend for two more years. The monthly rent is $5,825 until March 2025 after which the monthly rent may increase as per the lease terms. 11. LEASE LIABILITIES (CONT'D) 11.1 Right of use asset As at June 30, 2025 As at December 31, 2024 $ $ Opening net book value 621,826 574,856 Additions - 161,039 Amortisation (39,742) (114,069) Impact of Lease Modification (474,651) - Closing net book value 107,433 621,826 Cost 161,039 997,239 Accumulated amortisation (53,606) (375,413) Closing net book value 107,433 621,826 Amortisation of right-of-use assets is being recorded in general and administrative expenses in the consolidated statement of comprehensive loss, under depreciation. 12. ASSET RETIREMENT OBLIGATION As at June 30, 2025 As at December 31, 2024 $ $ Balance beginning 7,253,852 - Additions 160,490 6,833,213 Accretion 586,837 420,639 Total asset retirement obligation 8,001,179 7,253,852 The asset retirement obligation represents the present value of the costs associated with the Corporation's mine decommissioning, cleanup, removal, de-contamination and closure plan ('the closure plan'). The closure plan has been developed in accordance with the guidelines of Section 43(2) of the Mineral Resources Act of Greenland. This obligation will be settled towards the end of the mine's life, which is estimated to be during the year 2035. The Corporation has set up an escrow account with the Government of Greenland as beneficiary as security for fulfilling the closure obligations (note 5). The Corporation has determined that the obligation's costs will be incurred mainly in Danish Krone (DKK) and has utilized DKK foreign exchange rates and risk-free rates on government bonds to measure the obligation. Accretion of discount for the three and six months ended June 30, 2025 of $284,025 and $586,837 respectively ($nil for the three and six months ended June 30, 2024) includes both the foreign exchange impact and accretion of the obligation as they both affect estimated future cash flows. 13. SHARE CAPITAL 13.1 Share Capital The Corporation is authorized to issue an unlimited number of common voting shares and an unlimited number of preferred shares issuable in series, all without par value. 13. SHARE CAPITAL (CONT'D) 13.2 Fundraising June 30, 2025 On June 30, 2025, the Corporation closed its fundraising pursuant to which it raised gross proceeds of approximately GBP 45.0 million (CAD $83.2 million, ISK 7.6 billion) through a placing of 42,221,080 common shares of the Corporation pursuant to the UK Placing, 8,550,810 common shares of the Corporation pursuant to the Icelandic Placing, and 2,214,146 common shares of the Corporation pursuant to the Direct Private Placement Subscription, which have been issued at a price of 85 pence (CAD $1.57, ISK 144 at the closing exchange rate on June 10, 2025) per new common share and will be admitted to trading on AIM, Nasdaq Iceland's main market, and the TSX-V. A total of 52,986,036 new common shares have been placed as part of the Fundraising. 14. STOCK-BASED COMPENSATION 14.1 Stock options An incentive stock option plan (the 'Plan') was approved initially in 2017 and renewed by shareholders on June 13, 2025. 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, directors, employees and consultants. The Board of directors attributes that 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 March and April 2025, an employee of the Corporation exercised his options. As a result, 154,592 options were exercised which resulted in the employee receiving 88,583 shares net of applicable withholdings. Changes in stock options are as follows: Six months ended June 30, 2025 December 31, 2024 Number of options Weighted average exercise price Number of options Weighted average exercise price $ $ Balance, beginning 7,220,075 0.59 9,188,365 0.59 Granted - - 22,988 1.30 Exercised (154,592) 0.68 (1,991,278) 0.61 Balance, end 7,065,483 0.59 7,220,075 0.59 Balance, end exercisable 7,065,483 0.59 7,220,075 0.59 From the options exercised during the six months ended June 30, 2025, 66,009 shares (948,347 for the year ended December 31, 2024) were withheld to cover the stock option grant price and related taxes. 14. STOCK-BASED COMPENSATION (CONT'D) Stock options outstanding and exercisable as at June 30, 2025 are as follows: Number of options outstanding Number of options exercisable Exercise price Expiry date $ 1,660,000 1,660,000 0.38 December 31, 2025 100,000 100,000 0.50 September 13, 2026 1,195,000 1,195,000 0.70 December 31, 2026 2,650,000 2,650,000 0.60 January 17, 2027 73,333 73,333 0.75 April 20, 2027 39,062 39,062 0.64 July 14, 2027 1,280,000 1,280,000 0.70 December 30, 2027 45,100 45,100 1.09 December 20, 2028 11,538 11,538 1.30 May 14, 2029 11,450 11,450 1.31 June 3, 2029 7,065,483 7,065,483 14.2 Restricted Share Unit 14.2.1 Description Conditional awards were made in 2022 that give participants the opportunity to earn restricted share unit awards under the Corporation's Restricted Share Unit Plan ('RSU Plan') subject to the generation of shareholder value over a four-year performance period. The awards are designed to align the interests of the Corporation's employees and shareholders by incentivising the delivery of exceptional shareholder returns over the long-term. Participants receive a 10% share of a pool which is defined by the total shareholder value created above a 10% per annum compound hurdle. The awards comprise three tranches, based on performance measured from January 1, 2022, to the following three measurement dates: First Measurement Date: December 31, 2023; Second Measurement Date: December 31, 2024; and Third Measurement Date: December 31, 2025. Restricted share unit awards granted under the RSU Plan as a result of achievement of the total shareholder return performance conditions are subject to continued service, with vesting as follows: Awards granted after the First Measurement Date - 50% vest after one year, 50% vest after three years. Awards granted after the Second Measurement Date - 50% vest after one year, 50% vest after two years. Awards granted after the Third Measurement Date - 100% vest after one year. The maximum term of the awards is therefore four years from grant. 14. STOCK-BASED COMPENSATION (CONT'D) The Corporation's starting market capitalization is based on a fixed share price of $0.552. Value created by share price growth and dividends paid at each measurement date will be calculated with reference to the average closing share price over the three months ending on that date. After December 31, 2023, 100% of the pool value at the First Measurement Date is delivered as restricted share units under the RSU Plan, subject to the maximum number of shares that can be allotted not being exceeded. After December 31, 2024, the pool value at the Second Measurement Date is reduced by the pool value from the First Measurement Date (increased in line with share price movements between the First and Second Measurement Dates). 100% of the remaining pool value, if any, is delivered as restricted share units under the RSU Plan. After December 31, 2025, the pool value at the Third Measurement Date is reduced by the pool value from the Second Measurement Date (increased in line with share price movements between the Second and Third Measurement Dates), and then further reduced by the pool value from the First Measurement Date (increased in line with share price movements between the First Measurement Date and the Third Measurement Date). 100% of the remaining pool value, if any, is delivered as restricted share units under the RSU Plan. On August 14, 2024, the Corporation granted a new conditional award under a separate RSU plan to the Corporation's newly appointed Chief Financial Officer. This award entitles the participant to receive a 12% share of a pool defined by the total shareholder value created above a 10% per annum compound hurdle rate. Performance is measured from August 6, 2024, to the measurement date on December 31, 2025 (note 14.2.4). On December 19, 2024, the Corporation granted new RSUs to its employees. The awards will vest on December 19, 2025, the one-year anniversary of the grant, with all other terms governed by the RSU Plan. On April 11, 2025, 3,329,704 restricted shares vested and were converted to common shares and transferred to capital stock. 14.2.2 RSU Plan Amendment The RSU Plan was amended by the Annual General Shareholders' meeting on June 14, 2024. The approved amendments to the RSU Plan indicated that Investor Relations Service Providers (as defined in the RSU Plan) cannot be granted any RSUs. In addition, as the RSU Plan is a 'rolling' plan, under Policy 4.4 of the TSXV, a listed company on the TSXV is required to obtain the approval of its Shareholders for a 'rolling' plan at each annual meeting of Shareholders. 14.2.3 Conditional Award under RSU Plan 2023 On October 13, 2023, Amaroq made an award (the 'Award') under the RSU Plan as detailed below. The Award consists of a conditional right to receive value if the future performance targets, applicable to the Award, are met. Any value to which the participants are eligible in respect of the Award will be granted as Restricted Share Units (each an 'RSU'), with each RSU entitling a participant to receive common shares in the Corporation. Each RSU will be granted under, and governed in accordance with, the rules of the Corporation's Restricted Share Unit Plan. 14. STOCK-BASED COMPENSATION (CONT'D) Award Date October 13, 2023 Initial Price CAD 0.552 Hurdle Rate 10% p.a. above the Initial Price Total Pool 10% of the growth in value above the Hurdle rate, not exceeding 10% of the Corporation's share capital. The number of shares will be determined at the Measurement Dates. Participant proportion Edward Wyvill, Corporate Development, 10% Performance Period January 1, 2022 to December 31, 2025 (inclusive) Normal Measurement Dates First Measurement Date: December 31, 2023, 50% vesting on the first anniversary of grant, with the remaining 50% vesting on the third anniversary of grant. Second Measurement Date: December 31, 2024, 50% vesting on the first anniversary of grant, with the remaining 50% vesting on the second anniversary of grant. Third Measurement Date: December 31, 2025, vesting on the first anniversary of grant. 14.2.4 Conditional Award under RSU Plan 2024 On August 14, 2024, Amaroq made an award (the 'Award') under the RSU Plan as detailed below. The Award consists of a conditional right to receive value if the future performance targets, applicable to the Award, are met. Any value to which the participants are eligible in respect of the Award will be granted as Restricted Share Units (each an 'RSU'), with each RSU entitling a participant to receive common shares in the Corporation. Each RSU will be granted under, and governed in accordance with, the rules of the Corporation's Restricted Share Unit Plan. Award Date August 14, 2024 Initial Price CAD 1.04 Hurdle Rate 10% p.a. above the Initial Price Total Pool 10% of the growth in value above the Hurdle rate, not exceeding 10% of the Corporation's share capital. The number of shares will be determined at the Measurement Date. Participant proportion Ellert Arnarson, Chief Financial Officer, 12% Performance Period August 6, 2024, to December 31, 2025 (inclusive) Measurement Date December 31, 2025, vesting on the first anniversary of grant. RSU Grant Date First quarter of 2026 RSU Vesting Date 100% of the shares will vest on the first anniversary of grant (first quarter of 2027) 14.2.5 Valuation The fair value of the award granted in December 2022 and modified June 2023, in addition to the award granted October 13, 2023, increased to $7,378,000 based on 90% of the available pool being awarded. During June 2024, some of the awards were forfeited due to the departure of Jaco Crouse, CFO of the Corporation, effective June 3, 2024. As a result of the departure, previously recognised RSU award vesting charges of $566,875 were reversed and the percentage of the pool that was allocated was reduced to 70%. During August 2024, new awards granted to the CFO increased the percentage of the pool that was allocated to 82%. A charge of $695,832 and $1,475,177 was recorded during the three and six months ended June 30, 2025, (a charge of $449,000 and $898,000 was recorded during the three and six months ended June 30, 2024). 14. STOCK-BASED COMPENSATION (CONT'D) The fair value was obtained through the use of a Monte Carlo simulation model which calculates a fair value based on a large number of randomly generated projections of the Corporation's share price. Assumption Value Grant date December 30, 2022 Amendment date June 15, 2023 Additional award date October 13, 2023 Forfeiture of 20% of the awards date June 3, 2024 Additional award date August 14, 2024 Expected life (years) 1.38 – 3.00 Share price at grant date $0.70 - $1.02 Exercise price N/A Dividend yield 0% Risk-free rate 3.44% - 4.71% Volatility 49.5% - 72% Total fair value of awards (82% of pool) $6,556,600 Expected volatility was determined from the daily share price volatility over a historical period prior to the date of grant with length commensurate with the expected life. A zero-dividend yield has been used based on the dividend yield as at the date of grant. 14.2.6 Awards under Restricted Share Unit Plan (the 'RSU') Based on the results of the performance period ending on the First Measurement Date pertaining to the 2022 and 2023 conditional RSU awards granted, and in alignment with the RSU Plan dated 15 June 2023 (note 14.2), the Corporation granted an award (the 'Award') on February 23, 2024 to directors and employees of the Corporation as listed below. Award Date February 23, 2024 Initial Price CAD 0.552 Hurdle Rate 10% p.a. above the Initial Price Total Pool 10% of the growth in value above the Hurdle rate, not exceeding 10% of the Corporation's share capital The number of shares is determined at the Measurement Dates Participant proportions and Number of shares subject to RSU Eldur Olafsson, CEO 40% 3,805,377 shares Jaco Crouse1, CFO 20% 1,902,688 shares Joan Plant, Executive VP 10% 951,344 shares James Gilbertson, VP Exploration 10% 951,344 shares Edward Wyvill, Corporate Development 10% 951,344 shares First Measurement Date: 31 December 2023 50% of the Shares will vest on the first anniversary of grant, with the remaining 50% vesting on the third anniversary of grant. 1The shares awarded under the RSU to Jaco Crouse, CFO, have been forfeited as a result of his departure effective June 3, 2024. 14. STOCK-BASED COMPENSATION (CONT'D) Based on the results of the performance period ending on the Second Measurement Date, pertaining to the 2022 and 2023 conditional RSU awards granted, and in alignment with the RSU Plan dated June 14, 2024 (note 14.2), the Corporation granted an award (the 'Award') on February 12, 2025, to directors and employees of the Corporation as listed below. Award Date February 12, 2025 Initial Price CAD 0.552 Hurdle Rate 10% p.a. above the Initial Price Total Pool 10% of the growth in value above the Hurdle rate, not exceeding 10% of the Corporation's share capital The number of shares is determined at the Measurement Dates Participant proportions and Number of shares subject to RSU Eldur Olafsson, CEO 40% 2,048,268 shares Joan Plant, Executive VP 10% 512,067 shares James Gilbertson, VP Exploration 10% 512,067 shares Edward Wyvill, Corporate Development 10% 512,067 shares First Measurement Date: 31 December 2024 50% of the Shares will vest on the first anniversary of grant, with the remaining 50% vesting on the third anniversary of grant. 15. EXPLORATION AND EVALUATION EXPENSES Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 $ $ $ $ Geology 264,248 119,346 267,521 133,343 Lodging and on-site support 16,013 (184,469) 17,686 - Drilling 143,015 - 243,571 - Analysis - 127,877 38,348 132,910 Transport 4,559 8,112 18,696 4,909 Supplies and equipment 12,274 75,586 13,942 110,511 Helicopter charter 51,882 - 51,882 - Maintenance infrastructure - (463,922) 229 16,832 Government fees 14,961 30,873 22,885 32,849 Exploration and evaluation expenses before depreciation 506,952 (286,597) 674,760 431,354 Depreciation 25,611 159,424 51,223 316,686 Exploration and evaluation expenses 532,563 (127,173) 725,983 748,040 16. GENERAL AND ADMINISTRATION Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 $ $ $ $ Salaries and benefits 1,249,955 2,121,857 2,387,012 2,991,272 Director's fees 154,897 159,000 313,897 318,000 Professional fees 1,323,188 912,159 2,566,483 1,851,968 Marketing and investor relations 178,673 147,134 376,091 313,171 Insurance 63,314 93,917 172,219 172,833 Travel and other expenses 943,676 639,947 1,444,919 1,244,459 Regulatory fees 265,387 188,726 720,240 582,459 General and administration before following elements 4,179,090 4,262,740 7,980,861 7,474,162 Stock-based compensation (note 14) 695,832 24,107 1,475,177 736,413 Depreciation 15,915 48,844 61,120 84,342 General and administration 4,890,837 4,335,691 9,517,158 8,294,917 17. FINANCE COSTS Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 $ $ $ $ Lease interest 1,975 9,558 10,397 18,132 Accretion of discount on asset retirement obligation 284,025 - 586,837 - Other finance costs 543,224 - 684,263 - 829,224 9,558 1,281,497 18,132 18. RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT COMPENSATION 18.1 Gardaq Joint Venture Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 $ $ $ $ Gardaq management fees and allocated cost 613,985 578,568 1,257,538 1,214,894 Other allocated costs 6,573 139,765 6,214 175,663 Foreign exchange revaluation (243,716) 56,710 (243,214) 62,927 376,842 775,043 1,020,538 1,453,484 As at June 30, 2025, the balance receivable from Gardaq amounted to $7,719,717 ($6,699,179 as at December 31, 2024). This receivable balance represents allocated overhead and general administration costs to manage the exploration work programmes and day-to-day activities of the joint venture. This balance will be converted to shares in Gardaq within 10 business days after the third anniversary of the completion of the Subscription and Shareholder Agreement dated April 13, 2023 (See note 6.1). 18. RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT COMPENSATION (CONT'D) 18.2 Key Management Compensation The Corporation's key management are the members of the board of directors, the President and Chief Executive Officer, the Chief Financial Officer, the Executive Vice President, the Head of Business Development and Corporate Affairs and the Vice President Explorations. Key management compensation is as follows: Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 $ $ $ $ Short-term benefits Salaries and benefits 799,294 394,843 1,250,514 840,566 Director's fees 154,897 159,000 313,897 318,000 Long-term benefits Stock-based compensation - 806 - 1,612 Stock-based compensation - RSU 302,825 (153,250) 605,650 398,250 Total compensation 1,257,016 401,399 2,170,061 1,558,428 18.3 Receivable from Key Management As at June 30, 2025, the balance receivable from key management amounted $297,728 ($nil as of December 31, 2024). This receivable balance represents an advance intended to cover the withholding tax on shares received by the Vice President Exploration. This balance was repaid to the Corporation on July 2, 2025. 19. NET EARNINGS (LOSS) PER COMMON SHARE The calculation of loss per share is shown in the table below. As a result of the loss incurred during the periods presented, all potentially dilutive common shares are deemed to be antidilutive and thus diluted loss per share is equal to the basic loss per share for these periods. Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 $ $ $ $ Net income (loss) and comprehensive income (loss) (5,646,026) 5,229,322 (10,044,723) (3,988,193) Weighted average number of common shares outstanding - basic 403,008,869 326,825,939 400,371,106 308,700,211 Weighted average number of common shares outstanding – diluted 403,008,869 364,748,474 400,371,106 308,700,211 Basic earning (loss) per share (0.014) 0.016 (0.025) (0.013) Diluted earning (loss) per common share (0.014) 0.014 (0.025) (0.013) 20. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT The Corporation is exposed to various risks through its financial instruments. The following analysis provides a summary of the Corporation's exposure to and concentrations of risk at June 30, 2025: 20.1 Credit Risk Credit risk is the risk that one party to a financial instrument will cause financial loss for the other party by failing to discharge an obligation. The Corporation's main credit risk relates to its prepaid amounts to suppliers for placing orders, manufacturing and delivery of process plant equipment, as well as an advance payment to a mining contractor. The Corporation performed expected credit loss assessment and assessed the amounts to be fully recoverable. 20.2 Fair Value Financial assets and liabilities recognized or disclosed at fair value are classified in the fair value hierarchy based upon the nature of the inputs used in the determination of fair value. The levels of the fair value hierarchy are: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices) Level 3 - Inputs for the asset or liability that are not based on observable market data (i.e., unobservable inputs) The following table summarizes the carrying value of the Corporation's financial instruments: June 30, 2025 December 31, 2024 $ $ Cash 86,010,495 45,193,670 Deposit 178,541 181,871 Interest receivable 107,500 114,064 Financial Asset – Related Party 7,719,717 6,699,179 Accounts payable and accrued liabilities (19,843,329) (18,233,113) Loans payable (40,249,134) (28,621,732) Lease liabilities (152,845) (710,713) Due to the short-term maturities of cash, financial asset – related party, and accounts payable and accrued liabilities, the carrying amounts of these financial instruments approximate fair value at the respective balance sheet date. The carrying value of the loans payable approximate its fair value as the loans were entered into towards the end of the financial year. The carrying value of lease liabilities approximate its fair value based upon a discounted cash flows method using a discount rate that reflects the Corporation's borrowing rate at the end of the period. 20.3 Liquidity Risk Liquidity risk is the risk that the Corporation will encounter difficulty in meeting obligations associated with financial liabilities. The Corporation seeks to ensure that it has sufficient capital to meet short-term financial obligations after taking into account its exploration and operating obligations and cash on hand. On December 30, 2024, the Corporation closed a new US$35 million revolving credit facility with Landsbankinn that refinanced its existing loans payable, fund general and administrative costs, exploration and evaluation costs and Nalunaq project development costs (note 10.3). The Corporation's options to enhance liquidity include the issuance of new equity instruments or debt. 20. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONT'D) The following table summarizes the carrying amounts and contractual maturities of financial liabilities: As at June 30, 2025 As at December 31, 2024 Accounts payable and accrued liabilities Loan payable Lease liabilities Accounts payable and accrued liabilities Loan payable Lease liabilities $ $ $ $ $ $ Within 1 year 19,843,329 40,249,134 83,410 18,233,113 28,621,732 150,850 1 to 5 years - - 77,631 - - 535,028 5 to 10 years - - - - - 126,975 Total 19,843,329 40,249,134 161,041 18,233,113 28,621,732 812,853 The Corporation has assessed that it is not exposed to significant liquidity risk due to its cash balance in the amount of $86,010,495 and the availability of undrawn credit facilities at the end of the period. 21. SUBSEQUENT EVENTS 21.1 Strategic Acquisitions As part of the Corporation's strategy to expand its Greenlandic footprint and diversify its commodity exposure, on June 11, 2025 Amaroq announced the acquisition of the entire issued share capital of Black Angel Mining A/S ('Black Angel') from FBC Mining (BA) Limited ('FBC Mining'), as well as the proposed acquisition of the Kangerluarsuk licences from 80 Mile plc ('80 Mile') to create the West Greenland Hub. The Corporation entered into a binding, conditional share sale and purchase agreement with FBC Mining, with a consideration of US$10 million, for the Black Angel acquisition; and a binding, conditional memorandum of understanding with 80 Mile and Disko Exploration Ltd, with an initial consideration of US$0.5 million and a potential deferred consideration of US$1.5 million (subject to the delineation of a mineral resource in the licence areas that could support the commencement of a formal Preliminary Economic Assessment, scoping study, or equivalent, which indicates the potential for economic extraction), for the acquisition of the Kangerluarsuk licences. The initial consideration for both strategic acquisitions and the potential deferred consideration (if any) will be satisfied by the issue of Amaroq shares at prices to be determined with reference to the market price of the Corporation's common shares prior to closing of each of the strategic acquisitions. Amaroq shares will be issued to satisfy the initial consideration and the deferred consideration, respectively, for the transaction with 80 Mile. Completion of each of the strategic acquisitions are subject to the satisfaction of certain customary conditions precedent (and, in the case of 80 Mile, the negotiation of definitive documentation), including the approval of the TSX-V and the approval of direct and indirect transfers of mineral exploration licences by the Government of Greenland. The acquisition of Black Angel is a related party transaction.
Toronto Star
an hour ago
- Toronto Star
US Firm Achieves Second Thorium Breakthrough at Idaho National Lab's Reactor
The glowing blue core of the Advanced Test Reactor at Idaho National Laboratory. CHICAGO, Aug. 14, 2025 (GLOBE NEWSWIRE) — Clean Core Thorium Energy (CCTE) announces the second major milestone for its patented Advanced Nuclear Energy for Enriched Life (ANEEL™) fuel, which has now reached a burnup level of over 45 gigawatt-days per metric ton (GWd/MTU) in the Advanced Test Reactor (ATR) at the U.S. Department of Energy's Idaho National Laboratory (INL). This achievement outpaces the capabilities of conventional nuclear fuels used in Pressurized Heavy Water Reactors (PHWRs) and CANDU reactors. In May 2024, twelve ANEEL™ fuel rodlets were loaded into the ATR for irradiation to achieve three burnup level targets. The first successful irradiation of four rodlets surpassed 20 GWd/MTU last year. CCTE is excited to report that the second set of four rodlets have exceeded 45 GWd/MTU—six to seven times the average discharge burnup for PHWR/CANDU reactors that are designed to use natural uranium fuel. The newly irradiated rodlets are currently cooling in the ATR water pool and will soon be transferred to INL's Materials and Fuels Complex (MFC) for detailed post-irradiation examination. The final four rodlets will remain in the ATR for continued irradiation, with expected burnup levels exceeding 60 GWd/MTU. ARTICLE CONTINUES BELOW These results underscore ANEEL™ fuel's potential to redefine performance and sustainability standards in the nuclear industry. Developed by CCTE, the fuel uniquely combines thorium with High-Assay Low-Enriched Uranium (HALEU) to offer a safer, more efficient, and proliferation-resistant alternative for existing and future PHWR and other CANDU reactor fleets worldwide. Mehul Shah, Founder and CEO of CCTE Thorium Energy, said: 'This second burnup milestone is a transformative moment for CCTE and for the future of nuclear energy. ANEEL™ fuel is not just demonstrating superior technical performance—it's proving that thorium-based solutions can meaningfully address global challenges of energy security, nuclear waste, and proliferation. Our successful partnership with INL is helping unlock a new era for advanced nuclear fuels.' Dr. Koroush Shirvan, Head of Fuel Design at CCTE and Professor at MIT, added: 'The collection of this data positions ANEEL™ fuel as a prime candidate for near-term deployment in PHWRs' Dr. Michael Worrall, Technical Lead for the CCTE ATR Irradiation at INL, noted: 'ANEEL's performance in the ATR is a strong indicator of the promise thorium-based fuels hold in supporting future energy goals and diversifying the nuclear fuel landscape.' Dr. Daniel Wachs, National Technical Director for the DOE Advanced Fuels Campaign (AFC) and Nuclear Fuels and Materials Directorate Fellow at INL, said: 'The partnership between INL and CCTE is a great example of how the INL and private sector innovators can collaborate to rapidly develop advanced nuclear technologies with the potential to impact the marketplace worldwide.' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Gamma scanning of ANEEL irradiated capsules at the INL's hot cell facility. About Clean Core Thorium Energy Clean Core Thorium Energy is a U.S.-based nuclear innovation company developing advanced nuclear fuel solutions using thorium and HALEU. Its patented ANEEL™ fuel is designed to enhance the safety, economics, and nonproliferation profile of PHWRs and CANDU reactors while drastically reducing nuclear waste. Learn more at Follow us on LinkedIn and X. About Idaho National Laboratory Managed by Battelle Energy Alliance for the U.S. Department of Energy's Office of Nuclear Energy, INL is the nation's leading center for nuclear energy research and development. INL is celebrating 75 years of scientific leadership in energy, security, and environmental innovation. Learn more at Follow INL on Facebook, Instagram, LinkedIn, and X. Media Contact: Milan Shah Email: info@ Photos accompanying this announcement are available at
