MARKETABLE SECURITIES

9 Months Ended

May 31, 2022

Investments, Debt and Equity Securities [Abstract]

4. MARKETABLE SECURITIES

On May 4, 2022 ("Closing Date"), the Company announced the sale of its Clayton Valley unpatented mining claims to Cypress Development Corporation ("Cypress") and as a result of this transaction received 3,000,000 shares of Cypress along with $1,100,000 in cash. The 3,000,000 shares have been restricted for trade, the Company may trade 1,000,000 of these shares four months and one day after the Closing Date and thereafter may trade 1,000,000 shares in each three-month period following the Closing Date. Given the lock up conditions, the Company believes that there is a Lack of Marketability ("LOM") of these shares and thus recorded the shares using a discounting factor, the discounting factor was also used in fair valuing the shares as at the period ended date of May 31, 2022. Marketable securities as at May 31, 2022 consist of the Company's investment in 3,000,000 shares of Cypress.

As at May 31, 2022, the movement in the Company's marketable securities is as follows:

Balance, August 31, 2020	24,354
Additions	17,705
Proceeds from disposals	(21,385	)
Unrealized Gain	(5,680	)
Balance, August 31, 2021	14,994
Additions ¹	3,432,382
Unrealized gain/(loss)	(666,862	)
Proceeds from disposal	(10,064	)
Loss on disposal	(7,641	)
Balance, May 31, 2022	2,762,809

¹ Company recorded the 3,000,000 shares received from Cypress on May 4, 2022 as an investment and valued the investment using the closing rate of CAD1.63 per share and a discount rate of 10% due to LOM. The shares were subsequently revalued as at the period ended date of May 31, 2022 using the closing rate of CAD1.28 per share and discounting rate of 9%, with the resulting changes in fair value being recorded as part of other profit or loss.