Equity method investment (Tables)

6 Months Ended

May 31, 2020

Equity method investment

Schedule of gain on transfer of assets

	in thousands of dollars
	$
Fair value ascribed to Ambler Metals LLC interest	176,000
Less: carrying value of contributed /eliminated assets
Mineral properties	(30,587)
Property, plant and equipment	(618)
Elimination of Fairbanks warehouse right of use asset	(93)
Elimination of prepaid State of Alaska mining claim fees	(303)
Add:
Demobilization costs of drills	278
Cancellation of Fairbanks warehouse lease liability	93
Fair value of mineral properties purchase option	31,000
Gain on derecognition	175,770

Schedule of equity investment

The carrying value of Trilogy’s 50% investment in Ambler Metals LLC as at May 31, 2020 is summarized on the following table.

	in thousands of dollars
	$
February 11, 2020, fair value ascribed to Ambler Metals LLC interest	176,000
Share of loss on equity investment for the six-month period ended May 31, 2020	(739)
May 31, 2020, equity method investment	175,261

(c)The following table summarizes Ambler Metals LLC's Balance Sheet as at May 31, 2020.

	in thousands of dollars
	May 31, 2020
	$
Current assets: Cash, deposits and prepaid expenses	86,490
Non - current assets: Property, equipment and mineral properties	31,359
Loan receivable from South32	57,876
Current liabilities: Accounts payable and accrued liabilities	(917)
Non - current liabilities: Lease obligation	(79)
Net assets	174,729

(d)The following table summarizes Ambler Metals LLC's comprehensive loss from the formation of the joint venture on February 11, 2020 to the end of the reporting period on May 31, 2020.

	in thousands of dollars
	February 11 - May 31, 2020
	$
Amortization	50
Mineral properties expense	1,080
General and administrative expense	904
Interest income	(557)
Comprehensive loss	1,477