Sale of Sunward Investments Ltd

12 Months Ended

Nov. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Sale of Sunward Investments Ltd [Text Block]

7 Sale of Sunward Investments Ltd

On September 1, 2016, Trilogy completed the sale of all of the issued and outstanding shares of Sunward Investments to GMI for consideration of 5,000,000 common shares of GMI valued at $7.8 million and 1,000,000 warrants, with each warrant exercisable into one common share of GMI for a period of two years at an exercise price of CDN$3.50, valued at $0.3 million, for total consideration of $8.1 million. Sunward Investments, through a subsidiary, owned 100% of the Titiribi gold-copper exploration project. Trilogy acquired Sunward Investments and the Titiribi project as part of its acquisition of Sunward in a business combination which closed on June 19, 2015 (note 8).

 

The Company recognized a gain on the sale of Sunward Investments of $4.4 million as of September 1, 2016 as outlined below.

 

in thousands of dollars
	$
Consideration received	8,102
Cash reimbursement from GMI	51
Net assets sold	(3,545)
Transaction costs	(160)
Gain on sale of Sunward Investments	4,448

The fair value of the common shares received was determined based on the closing price of GMI of $1.56 (CDN$2.04) at the date of completion.

 

The common shares and warrants received have been designated as held-for-trading financial assets (note 3).

Following the announcement, the Company classified the operations of Sunward Investments as discontinued operations, retrospectively. The following expenses comprise the discontinued operations of Sunward Investments and substantially the entire Colombian segment of the Company for the periods of ownership noted.

in thousands of dollars

	December 1, 2015 - September 1, 2016 $		June 19, 2015 – November 30, 2015 $
Amortization		95		63
Foreign exchange loss		4		23
General and administrative		5		3
Mineral properties expense		460		309
Professional fees		34		-
Discontinued operations expense for the year		598		398
Gain on sale of Sunward Investments Ltd.		(4,448)		-
(Income)/loss from discontinued operations for the year		(3,850)		398