EX-99.2 3 exhibit99-2.htm EXHIBIT 99.2 New Pacific Metals Corp.: Exhibit 99.2 - Filed by newsfilecorp.com

 

 

 

 

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian Dollars)

New Pacific Metals Corp.
Unaudited Condensed Consolidated Interim Statements of Financial Position

(Expressed in Canadian dollars)

 

  Notes   March 31, 2021     June 30, 2020  
ASSETS              
Current Assets              
   Cash and cash equivalents   $ 60,040,843   $ 40,644,346  
   Short-term investments 4   155,194     20,633,772  
   Receivables     364,180     413,594  
   Deposits and prepayments     442,407     222,817  
   Assets held for distribution 3   -     11,849,971  
      61,002,624     73,764,500  
Non-current Assets              
   Other tax receivable 5   2,750,611     2,862,468  
   Equity investments 6   966,080     5,603,591  
   Plant and equipment 8   1,358,653     1,535,923  
   Mineral property interests 9   93,216,183     95,049,576  
TOTAL ASSETS   $ 159,294,151   $ 178,816,058  
               
LIABILITIES AND EQUITY              
Current Liabilities              
   Accounts payable and accrued liabilities   $ 941,775   $ 1,573,474  
   Payable for mineral property acquisition     -     263,120  
   Due to a related party 10   78,111     84,742  
   Liabilities held for distribution 3   -     122,178  
      1,019,886     2,043,514  
Equity              
   Share capital 11   194,700,309     191,563,628  
   Share-based payment reserve     22,231,557     22,057,385  
   Accumulated other comprehensive (loss) income     (367,745 )   6,599,738  
   Deficit     (58,229,568 )   (43,398,714 )
Total equity attributable to the equity holders of the Company     158,334,553     176,822,037  
               
   Non-controlling interests 12   (60,288 )   (49,493 )
Total Equity     158,274,265     176,772,544  
               
TOTAL LIABILITIES AND EQUITY   $ 159,294,151   $ 178,816,058  

 

Approved on behalf of the Board:  
   
(Signed) David Kong  
Director  
   
(Signed) Mark Cruise  
Director  

See accompanying notes to the unaudited condensed consolidated interim financial statements

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New Pacific Metals Corp.
Unaudited Condensed Consolidated Interim Statements of Loss

(Expressed in Canadian dollars)
      Three Months March 31,     Nine Months Ended March 31,  
  Notes   2021     2020     2021     2020  
                           
Operating expense                          
   Project evaluation and corporate development     387,362   $ -   $ 869,530   $ -  
   Depreciation     13,982     3,412     42,547     9,126  
   Filing and listing     93,621     30,352     353,178     238,218  
   Investor relations     121,320     152,995     335,146     593,568  
   Professional fees     67,881     69,360     514,285     282,156  
   Salaries and benefits     663,383     396,764     1,527,029     1,225,321  
   Office and administration     196,917     174,312     642,987     523,798  
   Share-based compensation 11(b)   494,521     705,653     1,408,927     1,294,734  
      2,038,987     1,532,848     5,693,629     4,166,921  
                           
Other income (expense)                          
   Income (loss) from investments 7   84,164     (1,594,956 )   788,628     860,146  
   Loss on disposal of plant and equipment 8   -     -     (2,479 )   -  
   Foreign exchange (loss) gain     (195,675 )   1,390,100     (1,074,454 )   1,243,563  
   Other expense     -     -     (465 )   -  
      (111,511 )   (204,856 )   (288,770 )   2,103,709  
                           
Net loss   $ (2,150,498 ) $ (1,737,704 ) $ (5,982,399 ) $ (2,063,212 )
                           
Attributable to:                          
   Equity holders of the Company   $ (2,147,396 ) $ (1,733,133 ) $ (5,974,587 ) $ (2,047,019 )
   Non-controlling interests 12   (3,102 )   (4,571 )   (7,812 )   (16,193 )
Net loss   $ (2,150,498 ) $ (1,737,704 ) $ (5,982,399 ) $ (2,063,212 )
                           
Loss per share attributable to the equity holders of the Company                          
Basic and diluted loss per share   $ (0.01 ) $ (0.01 ) $ (0.04 ) $ (0.01 )
Weighted average number of common shares - basic and diluted     153,620,966     147,522,980     153,036,665     145,399,888  


See accompanying notes to the unaudited condensed consolidated interim financial statements

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New Pacific Metals Corp.
Unaudited Condensed Consolidated Interim Statements of Comprehensive Income (Loss)

(Expressed in Canadian dollars)
     
      Three Months Ended March 31,     Nine Months Ended March 31,  
  Notes   2021     2020     2021     2020  
Net loss   $ (2,150,498 )   4(1,737,704 ) $ (5,982,399 )   4(2,063,212 )
Other comprehensive (loss) income, net of taxes:                          
Items that may subsequently be reclassified to net income or loss:                          
   Currency translation adjustment, net of tax of $nil     (1,163,709 )   7,901,155     (6,970,466 )   7,080,197  
Other comprehensive (loss) income, net of taxes   $ (1,163,709 ) $ 7,901,155   $ (6,970,466 )   47,080,197  
                           
Attributable to:                          
   Equity holders of the Company   $ (1,153,507 ) $ 7,853,606   $ (6,967,483 ) $ 7,047,098  
   Non-controlling interests 12   (10,202 )   47,549     (2,983 )   33,099  
    $ (1,163,709 ) $ 7,901,155   $ (6,970,466 ) $ 7,080,197  
Other comprehensive (loss) income, net of taxes   $ (3,314,207 ) $ 6,163,451   $ (12,952,865 ) $ 5,016,985  
                           
Attributable to:                          
   Equity holders of the Company   $ (3,300,903 ) $ 6,120,473   $ (12,942,070 ) $ 5,000,079  
   Non-controlling interests     (13,304 )   42,978     (10,795 )   16,906  
Total comprehensive (loss) income, net of taxes   $ (3,314,207 ) $ 6,163,451   $ (12,952,865 ) $ 5,016,985  

 

See accompanying notes to the unaudited condensed consolidated interim financial statements

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New Pacific Metals Corp.
Unaudited Condensed Consolidated Interim Statements of Cash Flows

(Expressed in Canadian dollars)
 
      Three Months Ended March 31,     Nine Months Ended March 31,  
  Notes   2021     2020     2021     2020  
                           
Operating activities                          
Net loss   $ (2,150,498 )   (1,737,704 )   (5,982,399 )   (2,063,212 )
Add (deduct) items not affecting cash:                          
      (Income) loss from investments     (84,164 )   1,594,956     (788,628 )   (860,146 )
      Dividends and interests received     80,621     73,049     296,334     424,034  
      Depreciation     13,982     3,412     42,547     9,126  
      Loss on disposal of plant and equipment     -     -     2,479     -  
      Share-based compensation 11(b)   570,097     705,653     1,529,789     1,294,734  
      Unrealized foreign exchange loss (gain)     195,675     (1,390,100 )   1,074,454     (1,243,563 )
   Changes in non-cash operating working capital 16   (167,622 )   (6,854 )   (1,051,485 )   (302,762 )
Net cash used in operating activities     (1,541,909 )   (757,588 )   (4,876,909 )   (2,741,789 )
                           
Investing activities                          
   Mineral property interest                          
      Capital expenditures     (1,400,427 )   (1,999,153 )   (4,276,654 )   (10,097,546 )
      Acquisition of mineral concession     -     -     -     (2,436,160 )
   Plant and equipment                          
      Additions     (12,883 )   (101,261 )   (56,061 )   (165,637 )
      Proceeds on disposals     -     -     1,808     -  
   Short-term investments                          
      Proceeds on disposals     6,000,000     6,838,198     20,000,000     8,816,648  
   Equity investments                          
      Acquisition 6   -     (247,000 )   -     (5,018,338 )
      Proceeds on disposals 6   -     110,708     5,572,409     6,131,622  
   Changes in other tax receivable     (27,043 )   (114,625 )   (113,052 )   (930,782 )
Net cash provided by (used in) investing activities     4,559,647     4,486,867     21,128,450     (3,700,193 )
                           
Financing activities                          
   Proceeds from issuance of common shares     302,954     517,052     1,005,108     16,588,486  
Net cash provided by financing activities     302,954     517,052     1,005,108     16,588,486  
Effect of exchange rate changes on cash and cash equivalents     (565,357 )   1,196,274     2,139,848     1,066,402  
                           
Increase in cash and cash equivalents     2,755,335     5,442,605     19,396,497     11,212,906  
                           
Cash and cash equivalents, beginning of the period     57,285,508     33,620,262     40,644,346     27,849,961  
Cash and cash equivalents, end of the period   $ 60,040,843   $ 39,062,867   $ 60,040,843   $ 39,062,867  
Supplementary cash flow information 16                        

 

   

See accompanying notes to the unaudited condensed consolidated interim financial statements

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New Pacific Metals Corp.
Unaudited Condensed Consolidated Interim Statements of Change in Equity

(Expressed in Canadian dollars, except for share figures)
      Share capital                       Total equity              
                        Accumulated           attributable              
      Number of           Share-based      other            to the equity     Non-        
      common           payment     comprehensive           holders of     controlling        
  Notes   shares issued     Amount     reserve     income     Deficit     the Company     interests     Total equity  
Balance, July 1, 2019     142,432,812   $ 150,005,738   $ 19,978,062   $ 3,264,901   $ (51,331,013 ) $ 121,917,688   $ (37,685 ) $ 121,880,003  
Options exercised     724,539     1,153,517     (398,564 )   -     -     754,953     -     754,953  
Common shares issued through bought deal financing     4,312,500     15,833,533     -     -     -     15,833,533     -     15,833,533  
Share-based compensation     -     -     2,479,503     -     -     2,479,503     -     2,479,503  
Common shares issued to acquire mineral property interest     291,000     460,144     (460,144 )   -     -     -     -     -  
Net loss     -     -     -     -     (2,047,019 )   (2,047,019 )   (16,193 )   (2,063,212 )
Currency translation adjustment     -     -     -     7,047,095     -     7,047,095     33,099     7,080,194  
Balance, March 31, 2020     147,760,851   $ 167,452,932   $ 21,598,857   $ 10,311,996   $ (53,378,032 ) $ 145,985,753   $ (20,779 ) $ 145,964,974  
Options exercised     163,527     404,560     (126,611 )   -     -     277,949     -     277,949  
Restricted share units vested     136,400     641,080     (641,080 )   -     -     -     -     -  
Common shares issued through bought deal financing     4,238,000     23,065,056     -     -     -     23,065,056     -     23,065,056  
Share-based compensation     -     -     1,226,219     -     -     1,226,219     -     1,226,219  
Net income (loss)     -     -     -     -     9,979,318     9,979,318     (3,219 )   9,976,099  
Currency translation adjustment     -     -     -     (3,712,258 )   -     (3,712,258 )   (25,495 )   (3,737,753 )
Balance, June 30, 2020     152,298,778   $ 191,563,628   $ 22,057,385   $ 6,599,738   $ (43,398,714 ) $ 176,822,037   $ (49,493 ) $ 176,772,544  
Options exercised 11(b)   999,768     1,505,257     (500,149 )   -     -     1,005,108     -     1,005,108  
Restricted share units vested     246,900     1,171,280     (1,171,280 )   -     -     -     -     -  
Share-based compensation 11(b)   -     -     2,305,745     -     -     2,305,745     -     2,305,745  
Common shares issued to acquire mineral property interest 11(c)   291,000     460,144     (460,144 )   -     -     -     -     -  
Spin-out distribution 3   -     -     -     -     (8,856,267 )   (8,856,267 )   -     (8,856,267 )
Net loss     -     -     -     -     (5,974,587 )   (5,974,587 )   (7,812 )   (5,982,399 )
Currency translation adjustment     -     -     -     (6,967,483 )   -     (6,967,483 )   (2,983 )   (6,970,466 )
Balance, March 31, 2021     153,836,446   $ 194,700,309   $ 22,231,557   $ (367,745 ) $ (58,229,568 ) $ 158,334,553   $ (60,288 ) $ 158,274,265  

See accompanying notes to the unaudited condensed consolidated interim financial statements

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New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

1. CORPORATE INFORMATION

New Pacific Metals Corp. along with its subsidiaries (collectively, the "Company" or "New Pacific") is a Canadian mining issuer engaged in exploring and developing mineral properties in Bolivia.  The Company is currently exploring and advancing the development of its mineral properties and has not yet determined if they contain potentially recoverable Mineral Reserves.  The underlying value and the recoverability of the amounts shown for mineral properties are entirely dependent upon the existence of recoverable Mineral Reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of the mineral properties, and future profitable production or proceeds from the disposition of the mineral property interests. 

The Company is publicly listed on the Toronto Stock Exchange ("TSX") under the symbol "NUAG" and on the OTCQX Best Market in the United States under the symbol "NUPMF".  The head office and the registered and records offices of the Company are located at 1066 West Hastings Street, Suite 1750, Vancouver, British Columbia, Canada, V6E 3X1.

2. SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of Compliance and Basis of Preparation

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") of the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").  These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended June 30, 2020.  These unaudited condensed consolidated interim financial statements follow the same significant accounting policies set out in Note 2 to the audited consolidated financial statements for the year ended June 30, 2020.

These unaudited condensed consolidated interim financial statements have been prepared on a going concern basis. 

The unaudited condensed consolidated interim financial statements of the Company as at and for the three and nine months ended March 31, 2021 was authorized for issue in accordance with a resolution of the Company's board of directors (the "Board") dated on May 13, 2021.

(b) Basis of Consolidation

These consolidated financial statements include the accounts of the Company and its wholly or partially owned subsidiaries.

Subsidiaries are consolidated from the date on which the Company obtains control up to the date of the disposition of control.  Control is achieved when the Company has power over the subsidiary, is exposed or has rights to variable returns from its involvement with the subsidiary, and has the ability to use its power to affect its returns.  For non-wholly-owned subsidiaries over which the Company has control, the net assets attributable to outside equity shareholders are presented as "non-controlling interests" in the equity section of the consolidated statements of financial position.  Net income for the period that is attributable to the non-controlling interests is calculated based on the ownership of the non-controlling interest shareholders in the subsidiary.

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New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

Balances, transactions, income and expenses between the Company and its subsidiaries are eliminated on consolidation.

Details of the Company's significant subsidiaries which are consolidated are as follows:

 

 

Proportion of ownership interest held

 

 

Country of

March 31,

June 30,

Mineral

Name of subsidiaries

Principal activity

incorporation

2021

2020

properties

New Pacific Offshore Inc.

Holding company

BVI (i)

100%

100%

 

SKN Nickel & Platinum Ltd.

Holding company

BVI

100%

100%

 

Glory Metals Investment Corp. Limited

Holding company

Hong Kong

100%

100%

 

New Pacific Investment Corp. Limited

Holding company

Hong Kong

100%

100%

 

New Pacific Andes Corp. Limited

Holding company

Hong Kong

100%

100%

 

Fortress Mining Inc.

Holding company

BVI

100%

100%

 

Minera Alcira S.A.

Mining company

Bolivia

100%

100%

Silver Sand

NPM Minerales S.A.

Mining company

Bolivia

100%

100%

 

Colquehuasi S.R.L.

Mining company

Bolivia

100%

100%

Silverstrike

Qinghai Found Mining Co., Ltd.

Mining company

China

82%

82%

RZY

Whitehorse Gold Corp.

Mining company

Canada

0%

100%

 

Tagish Lake Gold Corp.

Mining company

Canada

0%

100%

TLG

(i) British Virgin Islands ("BVI")

3. WHITEHORSE GOLD CORP. SPIN-OUT TRANSACTION

During Fiscal 2020, the Company performed a strategic review on the Tagish Lake Gold Project ("TLG Project") located in the Yukon Territory, Canada and established Whitehorse Gold Corp. ("Whitehorse Gold") to acquire the TLG Project from the Company for a cash consideration of $3,000,000 plus 20,000,000 Whitehorse Gold common shares ("spin-out shares"). 

On November 18, 2020, the Company distributed all of the spin-out shares held by it to the Company's shareholders on a pro rata basis by way of a plan of arrangement under the Business Corporations Act (British Columbia).  The spin-out shares were valued at $8,856,267 upon distribution.  Assets and liabilities of Whitehorse Gold and TLG Project which were classified as held for distribution as at June 30, 2020 in the amount of $11,849,971 and $122,178, respectively, were disposed upon completion of the spin-out. 

4. SHORT-TERM INVESTMENTS

Short-term investments consist of the following:

    March 31, 2021     June 30, 2020  
Guaranteed Investment Certificates $ -   $ 20,003,028  
Bonds   155,194     630,744  
  $ 155,194   $ 20,633,772  

5. OTHER TAX RECEIVABLE

Other tax receivable is comprised of value-added tax ("VAT") imposed by the Bolivian government.  The Company had VAT inputs through its exploration costs and general expenses incurred in Bolivia.  These VAT inputs are deductible against potential future VAT outputs that will be generated through mining production sales.

Page | 7

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

6. EQUITY INVESTMENTS

Equity investments represent equity interests of other publicly traded or privately-held companies that the Company has acquired on the open market or through private placements.  These equity interests consist of common shares, preferred shares, and warrants.  Equity investments are classified as fair value through profit or loss ("FVTPL") and are measured at fair value on initial recognition and subsequent measurement.  The fair value of warrants was determined using the Black-Scholes pricing model as at the acquisition date as well as at each period end.

The equity investments are summarized as follows:

    March 31, 2021     June 30, 2020  
Common or preferred shares            
                          Public companies $ 745,100   $ 4,795,960  
Warrants            
                          Public companies   220,980     807,631  
  $ 966,080   $ 5,603,591  

The fair value of the warrants was estimated using the Black Scholes options pricing model with the following assumptions:

    March 31, 2021     June 30, 2020  
Risk free interest rate   0.99%     0.36%  
Expected volatility   117%     122%  
Expected life of warrants in years   0.44     1.20  

The continuity of equity investments is summarized as follows:

          Accumulated mark-to-  
          market gain included  
    Fair value     in net income  
Balance, July 1, 2019 $ 5,110,893   $ 3,035,483  
Acquisition   5,018,338     -  
Proceeds on disposal   (6,131,622 )   -  
Change in fair value   1,605,982     1,605,982  
Balance, June 30, 2020 $ 5,603,591   $ 4,641,465  
Proceeds on disposal   (5,572,409 )      
Change in fair value   934,898     934,898  
Balance, March 31, 2021 $ 966,080   $ 5,576,363  

 

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New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

7. INCOME (LOSS) FROM INVESTMENTS

Income (loss) from investments consist of:

    Three Months Ended March 31,     Nine Months Ended March 31,  
    2021     2020     2021     2020  
Fair value change on equity investments $ 36,753   $ (1,424,696 ) $ 934,898   $ 901,109  
Fair value change on bonds   (2,161 )   (243,309 )   (440,779 )   (131,789 )
Dividend income   -     68,255     141,429     68,255  
Interest income   49,572     4,794     153,080     22,571  
Income (loss) from investments $ 84,164   $ (1,594,956 ) $ 788,628   $ 860,146  

8. PLANT AND EQUIPMENT

                      Office              
    Land and           Motor     equipment and     Computer        
Cost   building     Machinery     vehicles     furniture     software     Total  
Balance, July 1, 2019 $ 1,715,235   $ 1,381,268   $ 350,934   $ 229,366   $ 126,257   $ 3,803,060  
Additions   -     52,734     40,296     77,566     137,696     308,292  
Reclassified to assets held for distribution   -     -     -     -     (13,883 )   (13,883 )
Foreign currency translation impact   34,083     9,253     11,566     4,296     4     59,202  
Balance, June 30, 2020 $ 1,749,318   $ 1,443,255   $ 402,796   $ 311,228   $ 250,074   $ 4,156,671  
Additions   -     2,903     -     53,158     -     56,061  
Disposals   -     -     -     (38,646 )   -     (38,646 )
Foreign currency translation impact   (66,339 )   (20,584 )   (24,203 )   (10,103 )   (2 )   (121,231 )
Balance, March 31, 2021 $ 1,682,979   $ 1,425,574   $ 378,593   $ 315,637   $ 250,072   $ 4,052,855  
                                     
Accumulated depreciation and amortization                                    
Balance, July 1, 2019 $ (890,754 ) $ (1,149,255 ) $ (141,238 ) $ (184,800 ) $ (126,210 ) $ (2,492,257 )
Depreciation and amortization   -   $ (30,607 ) $ (54,118 ) $ (35,093 ) $ (1,941 ) $ (121,759 )
Reclassified to assets held for distribution   -   $ -   $ -   $ -   $ 46   $ 46  
Foreign currency translation impact   -   $ (1,693 ) $ (3,360 ) $ (1,722 ) $ (3 ) $ (6,778 )
Balance, June 30, 2020 $ (890,754 ) $ (1,181,555 ) $ (198,716 ) $ (221,615 ) $ (128,108 ) $ (2,620,748 )
Depreciation and amortization   -     (24,872 )   (44,733 )   (35,425 )   (22,859 )   (127,889 )
Disposals   -     -     -     34,359     -     34,359  
Foreign currency translation impact   -     5,569     10,558     3,948     1     20,076  
Balance, March 31, 2021 $ (890,754 ) $ (1,200,858 ) $ (232,891 ) $ (218,733 ) $ (150,966 ) $ (2,694,202 )
                                     
Carrying amount                                    
Balance, June 30, 2020 $ 858,564   $ 261,700   $ 204,080   $ 89,613   $ 121,966   $ 1,535,923  
Balance, March 31, 2021 $ 792,225   $ 224,716   $ 145,702   $ 96,904   $ 99,106   $ 1,358,653  

During the three and nine months ended March 31, 2021, certain plant and equipment were disposed for proceeds of $nil and $1,808, respectively (three and nine months ended March 31, 2020 - $nil and $nil, respectively) and loss of $nil and $2,479, respectively (three and nine months ended March 31, 2020 - $nil and $nil, respectively).

Page | 9

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

9. MINERAL PROPERTY INTERESTS

(a) Silver Sand Project

On July 20, 2017, the Company acquired the Silver Sand Project.  The Silver Sand Project is located in the Colavi District of the Potosí Department, in Southwestern Bolivia, 25 kilometres ("km") northwest of Potosí City, the department capital.  The Silver Sand Project covers an area of approximately 5.42 km2 at an elevation of 4,072 metres ("m") above sea level. 

The Company has carried out extensive exploration and resource definition drill programs on the Project since its acquisition in 2017.  From 2017 to 2019, the Company completed a total of 97,619 m of drilling in 386 diamond core drillholes. 

Advanced studies have commenced on the Project, and the Company selected CSA Global Consultants Canada Ltd. (an ERM Group company), Knight Piésold Consultores S.A., and Wood plc to lead the Preliminary Economic Assessment, Environmental baseline study, and Social baseline studies, respectively.

For the three and nine months ended March 31, 2021, total expenditures of $1,120,001 and $2,901,939, respectively (three and nine months ended March 31, 2020 - $2,395,286 and $10,932,321, respectively) were capitalized under the project.

In July 2018, the Company entered into an agreement with third party private vendors to acquire their 100% interest in Autorización Transitoria Especial ("ATE") located to the north of the Silver Sand Project by cash payments of $1,315,600 (US$1,000,000) and issuance of 832,000 common shares to the vendors (see note 11(c)).  During Fiscal 2019 and Fiscal 2020, cash payments of $1,052,480 (US$800,000) were paid and 541,000 common shares were issued to the vendors.  During the nine months ended March 31, 2021, the final payment of $263,120 (US$200,000) cash and 291,000 common shares were paid and issued to the vendors. 

(b) Silverstrike Project

In December 2019, the Company acquired a 98% interest in the Silverstrike Project from an arm's length private Bolivian corporation by making a one-time cash payment of $1,782,270 (US$1,350,000). 

The Silverstrike Project covers an area of approximately 13 km2 and is located approximately 140 km southwest of the city of La Paz, Bolivia. The Project shares many similarities with the Silver Sand Project pre-discovery drilling, namely: sandstone hosted structurally controlled silver-polymetallic mineralization centered on a historic mining district - the Berenguela District, presence of felsic Tertiary intrusive rocks with corresponding multiple silver rich occurrences associated with sercitic alteration.  The area is largely underexplored with limited modern exploration applied. 

For the three and nine months ended March 31, 2021, total expenditures of $539,911 and $1,821,588, respectively (three and nine months ended March 31, 2020 - $421,925 and $427,127, respectively) were capitalized under the project.

Page | 10

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

(c) Carangas Project

Subsequent to March 31, 2021, the Company signed an agreement with a private Bolivian company (the "Vendor") to acquire a 98% contractual interest in the Carangas silver project. 

The Carangas Project is located approximately 180 km southwest of the city of Oruro and within the 50 km from Bolivia's border with Chile.  The Vendor is owned 100% by Bolivian nationals and holds title to the two exploration licenses (covering an area of 6.25 km2) that comprise the Carangas Project. Under the agreement, the Company is required to cover 100% of the future expenditures on exploration, mining, development, and production activities.  The agreement has a term of 30 years and is renewable for an additional 15 years.  An initial discovery diamond drill program is planned to commence upon receipt of the required permits from AJAM.

(d) Tagish Lake Gold Project

The TLG Project, covering an area of approximately 170 km2, is located in Yukon Territory, Canada, and consists of 1,051 mining claims hosting three identified gold and gold-silver mineral deposits: Skukum Creek, Goddell Gully and Mount Skukum.  On November 18, 2020, the Whitehorse Gold spin-out transaction was completed and, as a result, the Company no longer holds an interest in the TLG Project (see note 3).

For the three and nine months ended March 31, 2021, total expenditures of $nil and $400,838, respectively (three and nine months ended March 31, 2020 - $nil and $nil, respectively) were capitalized under the TLG Project.

The project's carrying value of $12,220,838 (including $11,820,000 classified as part of the assets held for distribution balance as at June 30, 2020) was disposed upon the completion of the Whitehorse Gold spin-out transaction.   

(e) RZY Project

The RZY Project, located in Qinghai, China is an early stage silver-lead-zinc exploration project.  The RZY Project is located approximately 237 km from the city of Yushu Tibetan Autonomous Prefecture.  In 2016, the Qinghai Government issued a moratorium which suspended exploration for 26 mining projects in the region, including the RZY Project, and classified the region as a National Nature Reserve Area.   

During Fiscal 2020, the Company's subsidiary, Qinghai Found Mining Co., Ltd. ("Qinghai Found"), reached a compensation agreement with the Qinghai Government for the RZY Project.  Pursuant to the agreement, Qinghai Found will surrender its title to the RZY Project to the Qinghai Government after completing certain reclamation works for one-time cash compensation of $3.8 million (RMB ¥20 million).  As of March 31, 2021, the process was under review and subject to approval by the Qinghai Government.

Page | 11

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

The continuity schedule of mineral property acquisition costs and deferred exploration and development costs are summarized as follows:

Cost   Silver Sand     Silverstrike     Tagish Lake     RZY Project     Total  
Balance, July 1, 2019 $ 73,281,418   $ -   $ -   $ 3,534,664   $ 76,816,082  
Capitalized exploration expenditures                              
   Reporting and assessment   601,466     976     -     -     602,442  
   Drilling and assaying   6,521,210     2,237     -     -     6,523,447  
   Project management and support   4,546,717     586,052     -     -     5,132,769  
   Camp service   661,514     50,837     -     -     712,351  
   Camp construction   32,406     -     -     -     32,406  
   Permitting   51,358     -     105,056     -     156,414  
   Acquisition of Silverstrike Project   -     1,782,270     -     -     1,782,270  
   Acquisition of mineral concessions   290,220     -     -     -     290,220  
   Other   26,854     -     -     -     26,854  
   Impairment recovery   -     -     11,714,944     -     11,714,944  
   Reclassified to assets held for distribution   -     -     (11,820,000 )   -     (11,820,000 )
   Foreign currency impact   2,979,031     59,546     -     40,800     3,079,377  
Balance, June 30, 2020 $ 88,992,194   $ 2,481,918   $ -   $ 3,575,464   $ 95,049,576  
Capitalized exploration expenditures                              
   Reporting and assessment   450,181     5,229     60,959     -     516,369  
   Drilling and assaying   59,595     219,917     -     -     279,512  
   Project management and support   2,110,946     1,449,526     -     -     3,560,472  
   Camp service   204,419     132,736     -     -     337,155  
   Camp construction   59,669     -     275,999     -     335,668  
   Permitting   16,729     14,180     63,880     -     94,789  
   Disposal upon spin-out distribution   -     -     (400,838 )         (400,838 )
   Foreign currency impact   (6,371,060 )   (168,770 )   -     (16,690 )   (6,556,520 )
Balance, March 31, 2021 $ 85,522,673   $ 4,134,736   $ -   $ 3,558,774   $ 93,216,183  

10. RELATED PARTY TRANSACTIONS

Related party transactions are made on terms agreed upon with the related parties.  The balances with related parties are unsecured, non-interest bearing, and due on demand.  Related party transactions not disclosed elsewhere in the condensed consolidated interim financial statements are as follows:

Due to a related party   March 31, 2021     June 30, 2020  
Silvercorp Metals Inc. $ 78,111   $ 84,742  

(a) Silvercorp Metals Inc. ("Silvercorp") has two directors and one officer in common with the Company.  Silvercorp and the Company share office space and Silvercorp provides various general and administrative services to the Company.  Expenses in services rendered and incurred by Silvercorp on behalf of the Company for the three and nine months ended March 31, 2021 were $203,356 and $599,771, respectively (three and nine months ended March 31, 2020 - $151,288 and $575,635, respectively).

Page | 12

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

(b) Compensation of key management personnel

The remuneration of directors and other members of key management personnel for the three and nine months ended March 31, 2021 and 2020 are as follows:

      Three months ended March 31,     Nine months ended March 31,  
      2021     2020     2021     2020  
Director's cash compensation   $ 262,500   $ 17,500   $ 327,500   $ 57,500  
Director's share-based compensation     749,800     -     749,800     599,720  
Key management's cash compensation     483,845     624,027     942,206     985,655  
Key management's share-based compensation     1,758,820     -     1,818,220     2,961,000  
    $ 3,254,965   $ 641,527   $ 3,837,726   $ 4,603,875  

11. SHARE CAPITAL

(a)  Share Capital - authorized share capital

The Company's authorized share capital consists of an unlimited number of common shares without par value.

(b)  Share-based compensation

The Company has a share-based compensation plan (the "Plan") which consists of stock options and restricted share units ("RSUs").  The maximum number of common shares to be reserved for issuance on any share-based compensation under the Plan is a rolling 10% of the issued and outstanding common shares from time to time.   

For the three and nine months ended March 31, 2021, a total of $494,521 and $1,408,927, respectively (three and nine months ended March 31, 2020 - $705,653 and $1,294,734, respectively) were recorded as share-based compensation expense. 

For the three and nine months ended March 31, 2021, a total of $75,576 and $120,862, respectively (three and nine months ended March 31, 2020 - $nil and $nil, respectively) were included in the project evaluation and corporate development expense.

For the three and nine months ended March 31, 2021, a total of $245,864 and $775,956, respectively (three and nine months ended March 31, 2020 - $791,318 and $1,184,768, respectively) were capitalized under mineral property interests.

Page | 13

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

(i) Stock Options

The continuity schedule of stock options, as at December 31, 2020, is as follows:

          Weighted average  
    Number of options     exercise price  
Balance, July 1, 2019   5,905,000     1.36  
Options exercised   (888,066 )   1.16  
Options cancelled   (354,167 )   1.91  
Balance, June 30, 2020   4,662,767     1.36  
Options exercised   (999,768 )   1.07  
Options cancelled   (150,000 )   2.15  
Balance, March 31, 2021   3,512,999     1.49  

Option pricing model requires the input of subjective assumptions including the expected volatility.  Changes in the assumptions can materially affect the fair value estimate and therefore, the existing models do not necessarily provide a reliable estimate of the fair value of the Company's stock options.  The Company's expected volatility is based on the historical volatility of the Company's share price on the TSX.

The following table summarizes information about stock options outstanding as at March 31, 2021:

        Number of options     Weighted     Number of options     Weighted  
  Exercise     outstanding as at     average remaining     exercisable as at     average  
  prices     2021-03-31      contractual life (years)     2021-03-31     exercise price  
$ 0.55     695,000     0.59     695,000   $ 0.55  
  1.15     1,105,000     1.33     1,105,000   $ 1.15  
  1.57     200,000     1.69     200,000   $ 1.57  
  2.15     1,512,999     2.90     911,336   $ 2.15  
  0.55 - 2.15     3,512,999     1.88     2,911,336   $ 1.35  

Subsequent to March 31, 2021, a total of 32,000 stock options with an exercise price of $1.15 were exercised for proceeds of $36,800.

Page | 14

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

(ii) RSUs

The continuity schedule of RSUs, as at March 31, 2021, is as follows:

          Weighted average  
          grant date closing  
    Number of shares     price per share $CAD  
Balance, July 1, 2019   -   $ -  
Granted   1,064,600     4.70  
Cancelled   (3,000 )   -  
Distributed   (136,400 )   -  
Balance, June 30, 2020   925,200   $ 4.70  
Granted   360,500     6.46  
Cancelled   (26,250 )   4.80  
Distributed   (246,900 )   4.74  
Balance, March 31, 2021   1,012,550   $ 5.31  

(c)  Common Shares Issued for Mineral Property Interest

As partial consideration for the acquisition of ATEs located north to the Silver Sand Property (see note 9(a)), the Company agreed to issue a total of 832,000 common shares to the vendors valued at $1,315,600 (US$1,000,000) in the year ended June 30, 2019.  During the nine months ended March 31, 2021, 291,000 common shares valued at $460,144 (nine months ended March 31, 2020 - 291,000 common shares valued at $460,144) were issued and recorded under share capital. 

12. NON-CONTROLLING INTEREST

    Qinghai Found  
Balance, July 1, 2019 $ (37,685 )
Share of net loss   (19,412 )
Share of other comprehensive income   7,604  
Balance, June 30, 2020 $ (49,493 )
Share of net loss   (7,812 )
Share of other comprehensive loss   (2,983 )
Balance, March 31, 2021 $ (60,288 )

As at March 31, 2021 and June 30, 2020, the non-controlling interest in the Company's subsidiary Qinghai Found was 18%.

13. FINANCIAL INSTRUMENTS

The Company manages its exposure to financial risks, including liquidity risk, foreign exchange rate risk, interest rate risk, credit risk, and equity price risk in accordance with its risk management framework.  The Board has overall responsibility for the establishment and oversight of the Company's risk management framework and reviews the Company's policies on an ongoing basis.

Page | 15

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

(a) Fair Value

The Company classifies its fair value measurements within a fair value hierarchy, which reflects the significance of inputs used in making the measurements as defined in IFRS 13 - Fair Value Measurement ("IFRS 13").

Level 1 - Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets.

Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Unobservable inputs which are supported by little or no market activity.

The following table sets forth the Company's financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy as at March 31, 2021 and June 30, 2020 that are not otherwise disclosed.  As required by IFRS 13, financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

    Fair value as at March 31, 2021  
Recurring measurements   Level 1     Level 2     Level 3     Total  
Financial Assets                        
      Cash and cash equivalents $ 60,040,843   $ -   $ -   $ 60,040,843  
      Short-term investments - bonds   155,194     -     -     155,194  
      Common or preferred shares   430,653     -     -     430,653  
      Warrants   -     535,427     -     535,427  
                         
       
    Fair value as at June 30, 2020  
Recurring measurements   Level 1     Level 2     Level 3     Total  
Financial Assets                        
      Cash and cash equivalents $ 40,644,346   $ -   $ -   $ 40,644,346  
      Short-term investments - bonds   630,744     -     -     630,744  
      Common or preferred shares   4,795,960     -     -     4,795,960  
      Warrants   -     807,631     -     807,631  

Fair value of other financial instruments excluded from the table above approximates their carrying amount as of March 31, 2021 and June 30, 2020, respectively.

There were no transfers into or out of Level 3 during the three and nine months ended March 31, 2021.

(b) Liquidity Risk

The Company has a history of losses and no operating revenues from its operations.  Liquidity risk is the risk that the Company will not be able to meet its short term business requirements.  As at March 31, 2021, the Company had a working capital position of $59,982,738 and sufficient cash resources to meet the Company's short-term financial liabilities and its planned exploration expenditures on various projects in Bolivia, but not limited to, the next 12 months.

Page | 16

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

In the normal course of business, the Company enters into contracts that give rise to commitments for future minimum payments.  The following summarizes the remaining contractual maturities of the Company's financial liabilities:

    March 31, 2021     June 30, 2020  
    Due within a year     Total     Total  
Trade and other payables $ 941,775   $ 941,775   $ 1,573,474  
Due to a related party   78,111     78,111     84,742  
Payable for mineral property acquisition   -     -     263,120  
  $ 1,019,886   $ 1,019,886   $ 1,921,336  

(c) Foreign Exchange Risk

The Company is exposed to foreign exchange risk when it undertakes transactions and holds assets and liabilities denominated in foreign currencies other than its functional currencies.  The Company's functional currency is the Canadian dollar.  The Company currently does not engage in foreign exchange currency hedging.  The Company's exposure to foreign exchange risk is summarized as follows:

The amounts are expressed in CAD equivalents   March 31, 2021     June 30, 2020  
United States dollars $ 14,992,712   $ 15,206,715  
Bolivianos   628,713     404,952  
Chinese RMB   274,669     218,216  
Financial assets in foreign currency $ 15,896,094   $ 15,829,883  
             
United States dollars $ 291,115   $ 589,986  
Chinese RMB   233,005     137,725  
Financial liabilities in foreign currency $ 524,120   $ 727,711  

As at March 31, 2021, with other variables unchanged, a 1% strengthening (weakening) of the US dollar against the CAD would have increased (decreased) net income by approximately $147,000.

As at March 31, 2021, with other variables unchanged, a 1% strengthening (weakening) of the Bolivianos against the CAD would have increased (decreased) net income by approximately $6,000.

As at March 31, 2021, with other variables unchanged, a 1% strengthening (weakening) of the Chinese RMB against the CAD would have increased (decreased) net income by approximately $500.

(d) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates.  The Company's cash and cash equivalents primarily include highly liquid investments that earn interest at market rates that are fixed to maturity.  The Company also holds a portion of cash and cash equivalents in bank accounts that earn variable interest rates.  Due to the short-term nature of these financial instruments, fluctuations in market rates do not have significant impact on the fair values of the financial instruments as of March 31, 2021.  The Company, from time to time, also owns GICs and bonds that earn interest payments at fixed rates to maturity.  Fluctuation in market interest rates usually will have an impact on bond's fair value.  An increase in market interest rates will generally reduce bond's fair value while a decrease in market interest rates will generally increase it.  The Company monitors market interest rate fluctuations closely and adjusts the investment portfolio accordingly. 

Page | 17

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

(e) Credit Risk

Credit risk is the risk of financial loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations.  The Company's exposure to credit risk is primarily associated with cash and cash equivalents, bonds, and receivables.  The carrying amount of financial assets included on the statement of financial position represents the maximum credit exposure.

The Company has deposits of cash equivalents that meet minimum requirements for quality and liquidity as stipulated by the Board.  Management believes the risk of loss to be remote, as majority of its cash and cash equivalents are held with major financial institutions.  Bonds by nature are exposed to more credit risk than cash.  The Company manages its risk associated with bonds by only investing in large globally recognized corporations from diversified industries.  As at March 31, 2021, the Company had a receivables balance of $364,180 (June 30, 2020 - $413,594).

(f) Equity Price Risk

The Company holds certain marketable securities that will fluctuate in value as a result of trading on global financial markets.  Based upon the Company's portfolio at March 31, 2021, a 10% increase (decrease) in the market price of the securities held, ignoring any foreign exchange effects would have resulted in an increase (decrease) to net income of approximately $97,000.

14. CAPITAL MANAGEMENT

The objectives of the capital management policy are to safeguard the Company's ability to support exploration and operating requirements on an ongoing basis, continue the investment in high quality assets along with safeguarding the value of its mineral properties, and support any expansionary plans.

The capital of the Company consists of the items included in equity less cash and cash equivalents and bonds.  Risk and capital management are primarily the responsibility of the Company's corporate finance function and is monitored by the Board. The Company manages the capital structure and makes adjustments depending on economic conditions. Significant risks are monitored and actions are taken, when necessary, according to the Company's approved policies.

In addition, the current COVID-19 pandemic has caused significant disruption to global economic conditions which may adversely impact the Company's results. 

15. SEGMENTED INFORMATION

The Company operates in four reportable operating segments, one being the corporate segment; the others being the exploration and development segments focused on safeguarding the value of its mineral properties in relevant geographical jurisdictions.  These reporting segments are components of the Company where separate financial information is available that is evaluated regularly by the Company's Chief Executive Officer, the chief operating decision maker.

Page | 18

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

(a) Segment information for assets and liabilities are as follows:

              March 31, 2021          
      Corporate       Exploration and Development       Total  
      Canada and BVI       Bolivia     Canada     China    
   
Cash and cash equivalents   $ 59,566,482     $ 394,895   $ -   $ 79,466     $ 60,040,843  
Short-term investments     155,194       -     -     -       155,194  
Equity investments     966,080       -     -     -       966,080  
Plant and equipment     156,488       1,183,826     -     18,339       1,358,653  
Mineral property interests     -       89,657,409     -     3,558,774       93,216,183  
Other assets     350,824       3,002,818     -     203,556       3,557,198  
Total Assets   $ 61,195,068     $ 94,238,948   $ -   $ 3,860,135     $ 159,294,151  
                                     
Total Liabilities   $ (495,765 )   $ (291,116 ) $ -   $ (233,005 )   $ (1,019,886 )
                                     
              June 30, 2020          
      Corporate       Exploration and Development       Total  
      Canada and BVI       Bolivia     Canada     China    
   
Cash and cash equivalents   $ 40,007,801     $ 180,406   $ 419,860   $ 36,279     $ 40,644,346  
Short-term investments     20,633,772       -     -     -       20,633,772  
Equity investments     5,603,591       -     -     -       5,603,591  
Plant and equipment     187,979       1,325,228     -     22,716       1,535,923  
Mineral property interests     -       91,474,112     -     3,575,464       95,049,576  
Assets held for distribution     -       -     11,849,971     -       11,849,971  
Other assets     161,893       3,146,646     -     190,340       3,498,879  
Total Assets   $ 66,595,036     $ 96,126,392   $ 12,269,831   $ 3,824,799     $ 178,816,058  
                                     
Total Liabilities   $ (1,193,625 )   $ (589,987 ) $ (122,178 ) $ (137,724 )   $ (2,043,514 )

 

Page | 19

New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)

(b) Segment information for operating results are as follows:

      Three months ended March 31, 2021  
      Exploration and Development       Total  
      Canada and BVI       Bolivia     Canada     China    
Project evaluation and corporate development   $ 230,328     $ 157,034   $ -   $ -     $ 387,362  
Salaries and benefits     651,878       -     -     11,505       663,383  
Share-based compensation     494,521       -     -     -       494,521  
Other operating expenses     461,207       26,725     -     5,789       493,721  
Total operating expense     1,837,934       183,759     -     17,294       2,038,987  
                                     
Income from investments     84,102       -     -     62       84,164  
Foreign exchange loss     (195,675 )     -     -     -       (195,675 )
Net loss   $ (1,949,507 )   $ (183,759 ) $ -   $ (17,232 )   $ (2,150,498 )
                                     
Attributed to:                                    
Equity holders of the Company   $ (1,949,507 )   $ (183,759 ) $ -   $ (14,130 )   $ (2,147,396 )
Non-controlling interests     -       -     -     (3,102 )     (3,102 )
Net loss   $ (1,949,507 )   $ (183,759 ) $ -   $ (17,232 )   $ (2,150,498 )

 

              Three months ended March 31, 2020          
      Corporate       Exploration and Development       Total  
      Canada and BVI       Bolivia     Canada     China    
Salaries and benefits   $ 365,257     $ -   $ 14,676   $ 16,831     $ 396,764  
Share-based compensation     705,653       -     -     -       705,653  
Other operating expenses     406,596       -     15,226     8,609       430,431  
Total operating expense     1,477,506       -     29,902     25,440       1,532,848  
                                     
(Loss) income from investments     (1,595,002 )     -     -     46       (1,594,956 )
Foreign exchange gain     1,390,043       -     56     1       1,390,100  
Other income (expense)     15,000       -     (15,000 )   -       -  
Net loss   $ (1,667,465 )   $ -   $ (44,846 ) $ (25,393 )   $ (1,737,704 )
                                     
Attributed to:                                    
Equity holders of the Company   $ (1,667,465 )   $ -   $ (44,846 ) $ (20,822 )   $ (1,733,133 )
Non-controlling interests     -       -     -     (4,571 )     (4,571 )
Net loss   $ (1,667,465 )   $ -   $ (44,846 ) $ (25,393 )   $ (1,737,704 )

 

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New Pacific Metals Corp.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2021 and 2020

(Expressed in Canadian dollars, except for share figures)
    Nine months ended March 31, 2021  
    Corporate       Exploration and Development       Total  
    Canada and BVI       Bolivia     Canada     China    
Project evaluation and corporate development $ 294,598     $ 574,932   $ -   $ -     $ 869,530  
Salaries and benefits   1,578,420       -     (84,600 )   33,209       1,527,029  
Share-based compensation   1,408,927       -     -     -       1,408,927  
Other operating expenses   2,172,498       27,763     (319,461 )   7,343       1,888,143  
Total operating expense   5,454,443       602,695     (404,061 )   40,552       5,693,629  
                                   
Income from investments   788,503       -     -     125       788,628  
Loss on disposal of plant and equipment   -       -     -     (2,479 )     (2,479 )
Foreign exchange loss   (1,074,063 )     -     (391 )   -       (1,074,454 )
Other expense   -       -     -     (465 )     (465 )
Net loss $ (5,740,003 )   $ (602,695 ) $ 403,670   $ (43,371 )   $ (5,982,399 )
                                   
Attributed to:                                  
Equity holders of the Company $ (5,740,003 )   $ (602,695 ) $ 403,670   $ (35,559 )   $ (5,974,587 )
Non-controlling interests   -       -     -     (7,812 )     (7,812 )
Net loss $ (5,740,003 )   $ (602,695 ) $ 403,670   $ (43,371 )   $ (5,982,399 )

 

    Nine months ended March 31, 2020  
    Corporate       Exploration and Development       Total  
    Canada       Bolivia     Canada     China    
Salaries and benefits $ 1,160,595     $ -   $ 14,676   $ 50,050     $ 1,225,321  
Share-based compensation   1,294,734       -     -     -       1,294,734  
Other operating expenses   1,479,191       -     127,456     40,219       1,646,866  
Total operating expense   3,934,520       -     142,132     90,269       4,166,921  
                                   
Income from investments   859,968       -     -     178       860,146  
Foreign exchange gain   1,243,374       -     56     133       1,243,563  
Other income (expense)   45,000       -     (45,000 )   -       -  
Net loss $ (1,786,178 )   $ -   $ (187,076 ) $ (89,958 )   $ (2,063,212 )
                                   
Attributed to:                                  
Equity holders of the Company $ (1,786,178 )   $ -   $ (187,076 ) $ (73,765 )   $ (2,047,019 )
Non-controlling interests   -       -     -     (16,193 )   $ (16,193 )
Net loss $ (1,786,178 )   $ -   $ (187,076 ) $ (89,958 )   $ (2,063,212 )

16. SUPPLEMENTARY CASH FLOW INFORMATION

Changes in non-cash operating working capital:   Three Months Ended March 31,       Nine Months Ended March 31,  
    2021     2020       2021     2020  
Receivables $ (48,761 ) $ 7,695     $ 39,002   $ (117,160 )
Deposits and prepayments   49,142     20,668       (228,874 )   (36,691 )
Accounts payable and accrued liabilities   (132,805 )   (43,924 )     (854,982 )   (192,461 )
Due to a related party   (35,198 )   8,707       (6,631 )   43,550  
  $ (167,622 ) $ (6,854 )   $ (1,051,485 ) $ (302,762 )

 

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