MD&ACapital Resources
On September 5, 2024, the Company completed a non-brokered private placement by issuing 10,000,000 units (“Unit”) at a price of $0.035 per Unit for gross proceeds of $350,000. Each Unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share of the Company at an exercise price of $0.10 per common share until September 5, 2027. The Company incurred $29,628 share issue costs in connection with the financing. The proceeds from the issuance of the Units will be used by the Company to fund drilling and exploration programs in Finland, to fund ongoing operations in Portugal and Kosovo, and for general corporate purposes. The Company is aware of the current conditions in the financial markets and has planned accordingly.
The Company’s current treasury and the future cash flows from warrants and options, along with the planned developments within the Company as well as with its JV partner might not be sufficient to carry out its activities throughout 2024. The Company might have to raise additional financing under difficult financial conditions. If the market conditions prevail or improve, the Company will make adjustment to budgets accordingly.
Liquidity As at September 30, 2024, the Company had a working capital of $233,559 (December 31, 2023 – $132,571). With respect to working capital, $292,386 was held in cash (December 31, 2023 - $121,745). The increase in cash was due to (a) net proceeds from share issuance of $333,872; while being offset by (b) the general administrative expenses and exploration work expenses totaling $64,465; (c) advance to Akkerman Finland OY of $98,156; and (d) purchase of equipment of $610.