Exhibit 99.1
Snow Lake Resources Ltd.
Condensed Consolidated Interim Financial Statements
For the Three and Six months Ended December 31, 2021 and 2020
(Expressed in Canadian Dollars)
(UNAUDITED)
SNOW LAKE RESOURCES LTD.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF
FINANCIAL POSITION
(Expressed in Canadian Dollars)
| December 31, | June 30, | |||||||||||
| Note | 2021 | 2021 | ||||||||||
| $ | $ | |||||||||||
| Assets | ||||||||||||
| Current | ||||||||||||
| Cash | ||||||||||||
| Prepaids and deposits | 5 | |||||||||||
| Sales tax receivable | ||||||||||||
| Non-current | ||||||||||||
| Exploration and evaluation assets | 6 | |||||||||||
| Total assets | ||||||||||||
| Liabilities | ||||||||||||
| Current | ||||||||||||
| Accounts payable | ||||||||||||
| Loan payable | 7 | |||||||||||
| Due to related party | 11 | |||||||||||
| Convertible debentures | 8(a) | |||||||||||
| Derivative liability | 8(d) | |||||||||||
| Shareholders’ Equity | ||||||||||||
| Share capital | 9 | |||||||||||
| Reserves | 9 | |||||||||||
| Deficit | ( | ) | ( | ) | ||||||||
| Total shareholders’ equity | ||||||||||||
| Total liabilities and shareholders’ equity | ||||||||||||
Nature of operations (Note 1)
Commitments and contingencies (Note 14)
Subsequent event (Note 15)
Approved on behalf of the Board of Directors on March 31, 2022:
| “Louie Simens” | “Nachum Labkowski” | |
| Louie Simens, Director | Nachum Labkowski, Director |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
2
SNOW LAKE RESOURCES LTD.
UNAUDITED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(Expressed
in Canadian Dollars)
| Three months | Six months | |||||||||||||||||||
| Periods ended December 31, | Note | 2021 | 2020 | 2021 | 2020 | |||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Expenses | ||||||||||||||||||||
| Bank fees and interest | ||||||||||||||||||||
| Consulting fees | ||||||||||||||||||||
| Director and officer consulting fees | ||||||||||||||||||||
| General and administrative | ||||||||||||||||||||
| Interest expense and accretion on convertible debenture | 8(a) | |||||||||||||||||||
| Other interest and charges | 7 & 11 | |||||||||||||||||||
| Insurance | ||||||||||||||||||||
| Amortization of transaction cost | 8(a) | - | ||||||||||||||||||
| Professional fees | ||||||||||||||||||||
| Share-based compensation | ||||||||||||||||||||
| Transfer agent and regulatory fees | ||||||||||||||||||||
| Travel expenses | ||||||||||||||||||||
| ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
| Other income (loss) | ||||||||||||||||||||
| Foreign currency | ||||||||||||||||||||
| Government grants | 10 | |||||||||||||||||||
| Gain on change in fair value of derivative liability | 8(d) | |||||||||||||||||||
| Loss and comprehensive loss for the period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
| Weighted average number of shares outstanding | ||||||||||||||||||||
| Basic and diluted | ||||||||||||||||||||
| Loss per share | ||||||||||||||||||||
| Basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
3
SNOW LAKE RESOURCES LTD.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Expressed in Canadian Dollars, except number of shares)
| Share Capital | Reserves | |||||||||||||||||||||||||||||||
| Note | Common shares * | Issued capital | Warrant | Stock options | Total Reserves | Accumulated losses | Total shareholders’ equity | |||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Balance at June 30, 2020 | ( | ) | ||||||||||||||||||||||||||||||
| Loss for the period | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Balance at December 31, 2021 | ( | ) | ||||||||||||||||||||||||||||||
| Warrants exercised | ||||||||||||||||||||||||||||||||
| Convertible debenture warrants | - | |||||||||||||||||||||||||||||||
| Convertible debenture finder’s warrants | - | |||||||||||||||||||||||||||||||
| Loss for the period | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Balance at June 30, 2021 | ( | ) | ||||||||||||||||||||||||||||||
| Issued on IPO | ||||||||||||||||||||||||||||||||
| Share issue cost | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Convertible debenture finder’s warrants | - | |||||||||||||||||||||||||||||||
| Warrants exercised | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Shares issued on convertion of convertible debt | ||||||||||||||||||||||||||||||||
| Shared-based payments | - | |||||||||||||||||||||||||||||||
| Loss for the period | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Balance at December 31, 2021 | ( | ) | ||||||||||||||||||||||||||||||
| * | The Company’s completed a 5:1 share consolidation on October 7, 2021. Shares, warrants, and options in the consolidated financial statements are presented on a post-consolidation basis. |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
4
SNOW LAKE RESOURCES LTD.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in Canadian
Dollars)
| Six months ended December 31, | 2021 | 2020 | ||||||
| $ | $ | |||||||
| Cash flows used in operating activities | ||||||||
| Loss for the period | ( | ) | ( | ) | ||||
| Adjustments for items not involving cash: | ||||||||
| Recovery of flow through share liability | ||||||||
| Interest expense and accretion | ||||||||
| Amortization of transaction cost | ||||||||
| Share-based payments | ||||||||
| Gain on change in fair value of derivative liability | ( | ) | ||||||
| Net changes in non-cash working capital: | ||||||||
| Prepaids and deposits | ( | ) | ||||||
| Sales tax receivable | ( | ) | ||||||
| Accounts payable | ( | ) | ||||||
| Due to related party | ( | ) | ||||||
| ( | ) | ( | ) | |||||
| Cash flows used in investing activities | ||||||||
| Payments for exploration and evaluation assets | ( | ) | ( | ) | ||||
| ( | ) | ( | ) | |||||
| Cash flows provided by (used in) financing activities | ||||||||
| Loan from Nova Minerals Limited | ||||||||
| Proceeds from the exercise of warrants | ||||||||
| Issue of loan payable | ||||||||
| Proceeds from private placement | ||||||||
| Transaction costs related to issuance of shares or options | ( | ) | ||||||
| Net increase in cash | ( | ) | ||||||
| Cash, beginning of the period | ||||||||
| Cash, end of the period | ||||||||
| Supplemental disclosure with respect to cash flows (Note 12) | ||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
5
SNOW LAKE RESOURCES LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and six months ended December 31, 2021, and 2020
(Expressed in Canadian Dollars)
(Unaudited)
NOTE 1 – NATURE OF OPERATIONS
Snow Lake Resources Ltd., d/b/a Snow Lake Lithium Ltd. (Nasdaq: LITM) (“Snow Lake” or the “Company”) was incorporated under the Canada Business Corporations Act on May 25, 2018. The corporate and principal place of business is 242 Hargrave St. #1700, Winnipeg, Manitoba, R3C 0V1 Canada. The Company is a Canadian natural resource exploration company engaged in the exploration and development of mineral resources through the subsidiaries:
| i. | Snow Lake Exploration Ltd. (“SLE”) | |
| ii. | Snow Lake (Crowduck) Ltd. (“SLC”) |
| iii. | Thompson Bros Lithium Pty Ltd. (formerly Manitoba Minerals Pty Ltd.) (“Thompson Bros”) (Now dissolved) |
In this report, Snow Lake and the subsidiaries it controls are referred to as “the Group”.
On March 7, 2019, Snow Lake and Nova Minerals
Ltd. (“Nova”), a related party, entered into a share sale agreement (the “Agreement”), whereby Snow Lake acquired
all
On February 9, 2021, Thompson Bros was dissolved.
On November 22, 2021, the Company initiated trading under NASDAQ Composite under the symbol “LITM”
On November 23, 2021, the Company closed its initial
public offering (“IPO”) issuing
These unaudited condensed consolidated interim financial statements were approved by the Board of Directors for issue on March 31, 2022.
NOTE 2 – BASIS OF PRESENTATION
(a) Accounting Policies
The principal accounting policies applied in the preparation of these condensed consolidated interim financial statements are set out below. These policies have been consistently applied in the periods presented, unless otherwise stated. These unaudited condensed consolidated interim financial statements are expressed in Canadian dollars, which is the Company’s presentation and functional currency.
(b) Statement of compliance
The Company applies International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretation issued by the International Financial Reporting Interpretations Committee (“IFRIC”). These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by IASB and interpretations issued by IFRIC.
The policies applied in these unaudited condensed consolidated interim financial statements are based on IFRSs issued and outstanding as of March 31, 2022, the date the Board of Directors approved the statements. The same accounting policies and methods of computation are followed in these unaudited condensed consolidated interim financial statements as compared with the most recent annual consolidated financial statements as at and for the year ended June 30, 2021. Any subsequent changes to IFRS that are given effect in the Company’s annual consolidated financial statements for the year ending June 30, 2022, could result in restatement of these unaudited condensed consolidated interim financial statements.
6
SNOW LAKE RESOURCES LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and six months ended December 31, 2021, and 2020
(Expressed in Canadian Dollars)
(Unaudited)
NOTE 3 – CAPITAL MANAGEMENT
The Company’s objective when managing capital is to safeguard the Company’s ability to continue as a going concern such that it can provide returns for shareholders and benefits for other stakeholders. The management of the capital structure is based on the funds available to the Company in order to support the acquisition, exploration and development of mineral properties and to maintain the Company in good standing with the various regulatory authorities. In order to maintain or adjust its capital structure, the Company may issue new shares, sell assets to settle liabilities, issue debt instruments or return capital to its shareholders. The Company monitors its capital structure and adjusts in light of changes in economic conditions and the risk characteristics of the underlying assets.
NOTE 4 – FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
(a) Classification and measurement changes
As of December 31, 2021, the Company’s financial instruments consist of cash, accounts payable, loan payable, amounts due to related parties and derivative liability. Cash, accounts payable and due to related party are designated as at amortized cost, convertible debentures are initially measured at fair value, then amortized using the effective interest rate method and the derivative liability relating to the conversion feature of the convertible debentures is measured at fair value through profit and loss.
(b) Fair Value of Financial Instruments
IFRS requires disclosures about the inputs to fair value measurements for financial assets and liabilities recorded at fair value, including their classification within a hierarchy that prioritizes the inputs to fair value measurement.
The three levels of hierarchy are:
Level 1 – Quoted prices in active markets for identical assets or liabilities;
Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3 – Inputs for the asset or liability that are not based on observable market data.
As of December 31, 2021, the Company believes that the carrying values of cash, accounts payable, loan payable, convertible debentures, derivative liability – convertible debentures conversion feature and due to related parties approximate their fair values because of their nature and relatively short maturity dates or durations.
(c) Financial Instruments Risk
The Company’s financial instruments are exposed in varying degrees to a variety of financial risks. The Board approves and monitors the risk management processes:
(i) Credit risk:
Credit risk exposure primarily arises with respect to the Company’s cash and receivables. The risk exposure is limited because the Company places its instruments in banks of high credit worthiness within Canada and continuously monitors the collection of other receivables.
(ii) Liquidity risk:
Liquidity risk is the risk that the Company
cannot meet its financial obligations as they become due. The Company’s approach to managing liquidity is to ensure as far as
possible that it will have sufficient liquidity to settle obligations and liabilities when they become due. As of December 31, 2021,
the Company had cash of $
7
SNOW LAKE RESOURCES LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and six months ended December 31, 2021, and 2020
(Expressed in Canadian Dollars)
(Unaudited)
(iii) Market risk:
| a. | Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. A change of 100 basis points in the interest rates would not be material to the financial statements. |
| b. |
| ● | Assuming all other variables constant, an increase or a decrease of 10% of the Australian dollar against the Canadian dollar, the net loss of the Company and the equity for the period ended December 2021 would have varied by approximately $17,000. |
| ● | Assuming all other variables constant, an increase or a decrease of 10% of the United States dollar against the Canadian dollar, the net loss / gain of the Company and the equity for the period ended December 2021 would have varied approximately $3,078,000. |
| c. | The Company had no hedging agreements in place with respect to foreign exchange rates. |
NOTE 5 – PREPAIDS AND DEPOSITS
Included under prepaid expenses are approximately $
NOTE 6 – EXPLORATION AND EVALUATION ASSETS
Changes in the Company’s exploration and evaluation assets between the year ended June 30, 2021, and the six months ended
December 31, 2021 are reconciled as follows:
| As of | December 31, 2021 | June 30, 2021 | ||||||
| Balance beginning of the period | $ | $ | ||||||
| Exploration and evaluation expenditures | ||||||||
| Balance end of the period | $ | $ | ||||||
NOTE 7 – LOAN PAYABLE
On November 29, 2021, the Company entered into
a loan agreement for US$
NOTE 8 – CONVERTIBLE DEBENTURES AND DERIVATIVE LIABILITY
(a) Convertible debentures:
In February 2021, the Company issued convertible debt (the “Debentures”)
for a total of $
The Debentures were sold at a discount of approximately
Under the terms of the Agreement, the
Subscribed Amount plus interest accrued, at a rate which should be the higher of
8
SNOW LAKE RESOURCES LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and six months ended December 31, 2021, and 2020
(Expressed in Canadian Dollars)
(Unaudited)
In the event of a default, interest accrues at the lesser of (i) 24% per annum or (ii) the maximum legally authorized rate. The Company has the right to repay the note prior to maturity at 110% of the then outstanding principal and interest. The Company must provide 30 days’ notice and the Lender shall have the right to convert prior to the 30-day notice expiration.
The remaining undiscounted principal balance outstanding of the Debentures
as of June 30, 2021, was $
The Company determined the fair value of the conversion feature component upon initial recognition was $442,589. The residual $362,411 value of the $805,000 net proceeds received was allocated on a pro-rata basis between the debt component ($271,642) and the warrants component ($90,769) based on their relative fair values. The debt component was discounted at a rate of 20% and 346,104 subscriber warrants were valued using the Black Scholes valuation model, using the following assumptions: expected life: 2.5 years; volatility: 70%; dividend yield: nil; risk-free rate: 0.18% - 0.22%, market price: $1.50; and exercise price of $1.50. The Company recognized $101,565 of accretion expense relating to accreting the debt component of the Debentures up to their principal value and $38,699 of cash interest payable.
The Company incurred $24,507 in transaction costs pursuant to issuing the Debentures, including paying a $15,000 cash commission, issuing 15,000 finder’s warrants exercisable at $1.50 for the earlier of (i) 60 months from the grant date or (ii) 24 months from the Company completing a listing on a Canadian stock exchange and $27 in bank charges. These costs, along with the $45,263 discount, are being amortized over the term of the Debentures. During the year ended June 30, 2021, the Company amortized $13,284 of transaction costs and discount in the statement of loss and comprehensive loss, including $2,025 recorded to the warrants reserve for the value of the finder’s warrants allocated to the warrants component. The 15,000 finder’s warrants were valued using the Black Scholes valuation model, using the following assumption: expected life: 2.5 years; volatility: 70%; dividend yield: nil; risk-free rate: 0.18% - 0.22%, market price: $1.50; and exercise price of $1.50.
During November 2021 all debt holders exercised their conversion rights
at a price of $
9
SNOW LAKE RESOURCES LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and six months ended December 31, 2021, and 2020
(Expressed in Canadian Dollars)
(Unaudited)
The following schedule describes the break-down of the components of the debenture and allocations to each of its components:
| Convertible debenture | Derivative liability - convertible debenture conversion feature | Warrants value recorded to warrants reserve | Interest expenses and accretion | |||||||||||||
| Balance June 30, 2020 | $ | $ | $ | $ | ||||||||||||
| Principal value of convertible debenture | ||||||||||||||||
| Discount on proceeds received | ( | ) | ||||||||||||||
| Cash commission | ( | ) | ||||||||||||||
| Allocation to conversion feature | ( | ) | ||||||||||||||
| Allocation to warrants | ( | ) | ||||||||||||||
| Value at initial recognition | ||||||||||||||||
| Accretion expense | ||||||||||||||||
| Interest expense | ||||||||||||||||
| Amortization of transaction cost | ||||||||||||||||
| Gain on change in fair value of conversion feature derivative liability | ( | ) | ||||||||||||||
| Balance June 30, 2021 | ||||||||||||||||
| Accretion expense | ||||||||||||||||
| Interest expense | ||||||||||||||||
| Amortization of transaction cost | ||||||||||||||||
| Gain on change in fair value of conversion feature derivative liability | ( | ) | ||||||||||||||
| Warrants exercised | ( | ) | ||||||||||||||
| Conversion of convertible debenture | ( | ) | ( | ) | ||||||||||||
| Balance December 31, 2021 | $ | $ | $ | $ | ||||||||||||
(b) Compensation warrants:
As part of the initial IPO that the Company closed
on November 23, 2021,
The Company measures at each reporting period the fair value of its warrants denominated in a currency other that the Company’s functional currency which is the Canadian dollar. All the warrants issued under the IPO were denominated in United States dollars.
All derivatives have been classified as fair value through profit and loss, are included on the balance sheet within other assets, warrants or other liabilities. Gains and losses on re-measurement to fair value of warrants are included in “other gains and losses (net)”.
The fair value of all warrants is determined at each reporting period and at the time they are exercised. The difference between the carrying value and re-measured value is charged to income.
The warrants were valued using the Black Scholes valuation model, assuming a dividend yield as well as the risk-free rate, market price; and exercise price described in the table below:
10
SNOW LAKE RESOURCES LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and six months ended December 31, 2021, and 2020
(Expressed in Canadian Dollars)
(Unaudited)
| Canadian dollars | ||||||||||||||||||||||||||||||||||||
| Valuation date | Number of warrants | Market price of unit USD | Volatility | Risk-free interest rate | Expected life (yrs.) | Foreign exchange rate | Exercise price | Fair value of a unit | Fair value | |||||||||||||||||||||||||||
| November 23, 2021 | $ | % | % | $ | $ | $ | ||||||||||||||||||||||||||||||
| December 31, 2021 | $ | % | % | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Revaluation | $ | ( | ) | |||||||||||||||||||||||||||||||||
c) Gain on change in fair value of derivative liabilities:
The following schedule summarizes the gain (loss) on derivative liabilities for the three and six months ended December 31, 2021:
| Periods ended December 31, 2021 | Three months | Six months | ||||||
| Gain on change in fair value of conversion feature derivative liability | $ | $ | ||||||
| Gain in reevaluation of derivative warrants | ||||||||
| $ | $ | |||||||
NOTE 9 – SHARE CAPITAL AND RESERVES
(a) Authorized
Unlimited number of voting common shares without par value.
Unlimited preferred shares.
(b) Issued Share Capital
The following schedule describes the Company’s capital transactions since June 30, 2020:
| Shares | Issued capital | |||||||
| # | $ | |||||||
| Balance - June 30, 2020 | ||||||||
| Warrants exercised | ||||||||
| Balance – June 30, 2021 | ||||||||
| Shares issued on initial public offering | ||||||||
| Conversion of convertible debt | ||||||||
| Warrants exercised | ||||||||
| Share issue costs | ( | ) | ||||||
| Fair value of warrants exercised | ||||||||
| Balance December 31, 2021 | ||||||||
11
SNOW LAKE RESOURCES LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and six months ended December 31, 2021, and 2020
(Expressed in Canadian Dollars)
(Unaudited)
(c) Common Share Transaction Details
The Company had the following common share transactions during the year ended June 30, 2021, and the six months ended December 31, 2021:
| ● | During March 2021, the Company issued |
| ● | On November 23, 2021, the Company closed its IPO issuing |
| ● | On November 23, 2021, the Company issued |
| ● | During December 2021, the company issued |
| ● | On November 30, 2021, the company issued |
| ● | On December 16, 2021, the company issued |
(d) Warrants
The following tables summarizes common share purchase warrants transactions and outstanding as of December 31, 2021:
| Grant Date | Exercise price | Balance 30-Jun-20 | Issued | Exercised | Balance 31-Dec-21 | Expiry Dates | ||||||||||||||||
| November 29, 2018 | $ | ( | ) | |||||||||||||||||||
| December 3, 2018 | $ | |||||||||||||||||||||
| December 3, 2018 | $ | |||||||||||||||||||||
| December 31, 2018 | $ | |||||||||||||||||||||
| February 8, 2021 | $ | ( | ) | |||||||||||||||||||
| February 8, 2021 | $ | ( | ) | |||||||||||||||||||
| February 22, 2021 | $ | |||||||||||||||||||||
| November 23, 2021 | US 9.375 | |||||||||||||||||||||
| Total | ( | ) | ||||||||||||||||||||
As part of the convertible debentures issued in
February 2021, the Company issued
12
SNOW LAKE RESOURCES LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and six months ended December 31, 2021, and 2020
(Expressed in Canadian Dollars)
(Unaudited)
The Debenture warrants were valued using the Black
Scholes valuation model, using the following assumptions: expected life:
As part of the IPO that the Company closed on
November 23, 2021, the Company issued
(e) Stock Options
The following table summarizes the stock options issued and outstanding as of June 30, 2021 and December 31, 2021:
| Number of stock options | Weighted average exercise price | |||||||
| # | $ | |||||||
| Balance at June 30, 2019 (1) | $ | |||||||
| Option cancelled | ( | ) | ||||||
| Balance June 30, 2020 | ||||||||
| Options cancelled | ( | ) | ||||||
| Options reinstated (2) | ||||||||
| Balance at June 30, 2021 | ||||||||
| Options granted (3) | ||||||||
| Balance at December 31, 2021 | ||||||||
| (1) | |
| (2) | |
| (3) |
On November 18, 2021,
As of December 31, 2021, the weighted average
remaining contractual life of the stock options is
NOTE 10 – GOVERNMENT GRANTS
On December 14, 2021, the Company received a grant
for $
13
SNOW LAKE RESOURCES LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and six months ended December 31, 2021, and 2020
(Expressed in Canadian Dollars)
(Unaudited)
NOTE 11 – RELATED PARTY TRANSACTIONS
(a) Related Party Transactions
During the three and six months ended December 31, 2021 and 2020, the Company made payments to directors and officers, or to companies associated with these individuals, which are classified under the following categories:
| Consulting fees paid to officers & directors: | ||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||
| Periods ended December 31, | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Directors & officers consulting fees | $ | $ | $ | $ | ||||||||||||
| Exploration and evaluation expenditures | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||
Management consulting fees are paid to companies controlled by the Chief Executive Officer (“CEO”), the Chief Financial Officer (“CFO”) and the Chief Operating Officer (“COO”).
Included under Other Interest and Charges there are $
(b) Related Party Balances
All related party balances payable, for services and business expense reimbursements rendered as of December 31, 2021 and
June 30, 2021, are non-interest bearing and payable on demand, and are comprised of the following:
| December 30, | June 30, | |||||
| 2021 | 2021 | |||||
| Payable to Nova Minerals | $ | $ | ||||
| Payable to officers & directors | ||||||
| $ | $ |
NOTE 12 – SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS
Significant non-cash transactions for the six months ended December 31, 2021 and the year ended June 30, 2021 were as follows:
| December 31, 2021 | June 30, 2021 | |||||||
| Exploration and evaluation assets in accounts payable | $ | $ | ||||||
NOTE 13 – SEGMENT INFORMATION
The Company has determined that it has one reportable operating segment, being the acquisition, exploration, and valuation of mineral properties located in Canada. At December 31, 2021, all of the Company’s operating and capital assets are located in Canada.
14
SNOW LAKE RESOURCES LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and six months ended December 31, 2021, and 2020
(Expressed in Canadian Dollars)
(Unaudited)
NOTE 14 – COMMITMENTS AND CONTINGENCIES
| a) | The Company’s only undiscounted liabilities are accounts payable and accrued liabilities and amounts due to related parties, which are due within one year. |
| b) |
NOTE 15 – SUBSEQUENT EVENT
In January 2022, as part of the CEO’s compensation package, the company issued the following RSU to its CEO:
| ● |
| ● |
| ● |
15