METALLICA METALS CORP.
CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
For The Years Ended April 30, 2022 and 2021
S H I M
SHIM & Associates LLP
Chartered Professional Accountants
Suite 970 - 777 Hornby Street
Vancouver, B.C. V6Z 1S4
- 604 559 3511 | F: 604 559 3501
INDEPENDENT AUDITOR'S REPORT
To the Shareholders of Metallica Metals Corp.
Opinion
We have audited the accompanying consolidated financial statements of Metallica Metals Corp. (the "Company"), which comprise the consolidated statements of financial position as at April 30, 2022 and 2021, and the consolidated statements of operations and comprehensive loss, cash flows and shareholders' equity for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at April 30, 2022 and 2021, and its consolidated financial performance and cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS").
Basis for Opinion
We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 of the consolidated financial statements, which indicates that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Other Information
Management is responsible for the other information. The other information comprises the information, other than the consolidated financial statements and our auditors' report thereon, included in Management's Discussion and Analysis report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, and in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
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SHIM & Associates LLP
Chartered Professional Accountants
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
The engagement partner on the audit resulting in this independent auditor's report is Dong H. Shim.
"SHIM & Associates LLP"
CHARTERED PROFESSIONAL ACCOUNTANTS
Vancouver, Canada
August 29, 2022
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METALLICA METALS CORP.
Consolidated Statements of Financial Position
(Expressed in Canadian Dollars)
As at April 30, 2022 and 2021
April 30, | April 30, | |||||||
Notes | 2022 | 2021 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 867,073 | $ | 1,833,823 | ||||
Loans receivable | 5 | 54,953 | - | |||||
Receivables | 6 | 156,865 | 107,315 | |||||
Prepaid expenses | 7 | 51,498 | 20,470 | |||||
Total current assets | 1,130,389 | 1,961,608 | ||||||
Non-current assets | ||||||||
Property, plant and equipment | 9 | - | 1,023,897 | |||||
Reclamation bond | 8 | - | 730,467 | |||||
Exploration and evaluation assets | 10 | 7,863,852 | 6,745,693 | |||||
TOTAL ASSETS | $ | 8,994,241 | $ | 10,461,665 | ||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Trade payables and accrued liabilities | 11 | $ | 101,646 | $ | 352,646 | |||
Due to related parties | 14 | 14,131 | 11,131 | |||||
Flow-through shares premium liability | 15 | 6,772 | 140,893 | |||||
Loans payable | 12 | 38,440 | 35,800 | |||||
Total current liabilities | 160,989 | 540,470 | ||||||
Non-current liabilities | ||||||||
Decommissioning obligations | 13 | - | 1,365,891 | |||||
TOTAL LIABILITIES | 160,989 | 1,906,361 | ||||||
EQUITY | ||||||||
Share capital | 15 | 44,418,008 | 41,679,159 | |||||
Reserves | 15 | 3,023,111 | 2,152,879 | |||||
Deficit | (38,607,867) | (35,276,734) | ||||||
TOTAL EQUITY | 8,833,252 | 8,555,304 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 8,994,241 | $ | 10,461,665 | ||||
Nature and continuance of operations (Note 1) | ||||||||
Contingency (Note 21) | ||||||||
Subsequent events (Note 23) | ||||||||
Approved by the Board of Directors on August 29, 2022 | ||||||||
"Paul Ténière" | "Sandy Noyes" | |||||||
Director | Director |
.
The accompanying notes are an integral part of these consolidated financial statements
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METALLICA METALS CORP.
Consolidated Statements of Operations and Comprehensive Loss
For the Years Ended April 30, 2022 and 2021
(Expressed in Canadian Dollars)
April 30, | April 30, | ||||
Notes | 2022 | 2021 | |||
EXPENSES | |||||
Accretion on decommissioning obligations | $ | 4,004 | $ | - | |
Consulting and management fees | 14 | 787,316 | 415,528 | ||
Filing and transfer agent fees | 39,711 | 41,999 | |||
Marketing | 193,368 | 172,526 | |||
Office and miscellaneous | 20,278 | 23,607 | |||
Professional fees | 119,112 | 121,338 | |||
Project evaluation costs | 30,465 | 57,500 | |||
Share-based payments | 15 | 828,737 | 210,868 | ||
Travel and promotion | 2,616 | 1,671 | |||
Total expenses | (2,025,607) | (1,045,037) | |||
OTHER ITEMS | |||||
Impairment of exploration and evaluation assets | 10 | (1,363,466) | (288,734) | ||
Impairment of property, plant and equipment | 9 | - | (1,659,191) | ||
Interest income | 5 | 5,176 | 28,047 | ||
Finance expenses | (20,610) | (16,642) | |||
Flow-through share premium recovery | 15 | 245,822 | - | ||
Foreign exchange loss | (510) | (8) | |||
Loss on disposition of subsidiary | 4 | (231,686) | - | ||
Recovery of impaired exploration and evaluation assets | 59,948 | - | |||
Write off of accounts payable | 11 | 2,500 | 65,619 | ||
Write off of accounts receivable | 6 | (2,700) | - | ||
Total other items | (1,305,526) | (1,870,909) | |||
Net and comprehensive loss for the year | $ | (3,331,133) | $(2,915,946) | ||
Loss per common share - basic and diluted | $ | (0.05) | $ | (0.10) | |
Weighted average number of common shares | |||||
outstanding - basic and diluted | 65,190,655 | 29,260,378 |
.
The accompanying notes are an integral part of these consolidated financial statements
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Metallica Metals Corp. published this content on 30 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2022 10:28:09 UTC.