MONTERO MINING AND EXPLORATION LTD.
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Three Months Ended March 31, 2024 and 2023
Expressed in Canadian Dollars
(Unaudited)
NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The accompanying unaudited condensed interim consolidated financial statements of Montero Mining and Exploration Ltd. (the "Company") have been prepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of condensed interim consolidated financial statements by an entity's auditor.
MONTERO MINING AND EXPLORATION LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited - Expressed in Canadian dollars)
As at March 31, As at December 31, | |||
Notes | 2024 | 2023 | |
$ | $ | ||
ASSETS | |||
Current assets | |||
Cash | 292,484 | 9,641 | |
Other receivables | 4,114 | 3,207 | |
Prepaid expenses and deposits | 26,896 | 29,889 | |
Total current assets | 323,494 | 42,737 | |
Non-current assets | |||
Plant and equipment | 4 | 398 | 431 |
Exploration and evaluation assets | 5 | 864,010 | 819,541 |
Total non-current assets | 864,408 | 819,972 | |
TOTAL ASSETS | 1,187,902 | 862,709 | |
LIABILITIES | |||
Current liabilities | |||
Trade and other payables | 6,8,9 | 864,205 | 1,356,969 |
Loans payable | 7,9 | 269,261 | 266,120 |
Total current liabilities | 1,133,466 | 1,623,089 | |
SHAREHOLDERS' EQUITY (DEFICIT) | |||
Share capital | 6,8,9 | 19,112,094 | 18,116,063 |
Share based payment reserve | 8 | 8,836,549 | 8,836,549 |
Foreign currency translation reserve | 1,047,560 | 1,047,560 | |
Accumulated deficit | (28,941,767) | (28,760,552) | |
Total shareholders' equity (deficit) | 54,436 | (760,380) | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | 1,187,902 | 862,709 |
Note 1 - Nature and continuance of operations
On behalf of the Board:
"Antony Harwood" | "Andrew Thomson" | |
Antony Harwood, Director | Andrew Thomson, Director |
See accompanying notes to the condensed interim consolidated financial statements.
4
MONTERO MINING AND EXPLORATION LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited - Expressed in Canadian dollars)
Three Months | Three Months | ||
ended | ended | ||
Notes | March 31, | March 31, | |
2024 | 2023 | ||
$ | $ | ||
EXPENSES | |||
Consulting, administrative and management fee | 9 | 53,939 | 61,105 |
Director's fee | - | 9,875 | |
Depreciation | 4 | 33 | 48 |
General and administrative | 9 | 39,199 | 36,936 |
Professional fees | 12,447 | 14,428 | |
Project investigation costs | 6,813 | - | |
Shareholder and regulatory | 7,569 | 5,227 | |
OPERATING EXPENSES | (120,000) | (127,619) | |
OTHER ITEMS | |||
Interest expense | 7 | (3,141) | (825) |
Loss on settlement of debt | 6,8 | (51,839) | - |
Foreign exchange gain (loss) | (6,235) | 8,291 | |
TOTAL OTHER ITEMS | (61,215) | 7,466 | |
NET AND COMPREHENSIVE LOSS | (181,215) | (120,153) | |
Loss per share, basic and diluted | 8 | (0.00) | (0.00) |
Weighted average number of shares outstanding | 43,441,637 | 38,647,485 |
See accompanying notes to the condensed interim consolidated financial statements
5
MONTERO MINING AND EXPLORATION LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) (Unaudited - Expressed in Canadian dollars)
Share Capital | Share Based | Foreign Currency | Accumulated | Total Equity | ||
Number of shares | Amount | Payment Reserve | Translation Reserve | Deficit | (Deficit) | |
$ | $ | $ | $ | $ | ||
Balance, December 31, 2022 | 38,647,485 | 18,116,063 | 8,836,549 | 1,047,560 | (28,161,006) | (160,834) |
Net loss and comprehensive loss | - | - | - | - | (120,153) | (120,153) |
Balance, March 31, 2023 | 38,647,485 | 18,116,063 | 8,836,549 | 1,047,560 | (28,281,159) | (280,987) |
Net loss and comprehensive loss | - | - | - | - | (479,393) | (479,393) |
Balance, December 31, 2023 | 38,647,485 | 18,116,063 | 8,836,549 | 1,047,560 | (28,760,552) | (760,380) |
Shares issued for cash | 5,332,997 | 799,950 | - | - | - | 799,950 |
Share issue costs | - | (55,758) | - | - | - | (55,758) |
Shares issued for debt | 1,300,813 | 251,839 | - | - | - | 251,839 |
Net loss and comprehensive loss | - | - | - | - | (181,215) | (181,215) |
Balance, March 31, 2024 | 45,281,295 | 19,112,094 | 8,836,549 | 1,047,560 | (28,941,767) | 54,436 |
See accompanying notes to the condensed interim consolidated financial statements.
6
MONTERO MINING AND EXPLORATION LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - Expressed in Canadian dollars)
Three Months | Three Months | |
ended | ended | |
March 31, | March 31, | |
2024 | 2023 | |
$ | $ | |
OPERATING ACTIVITIES | ||
Net loss for the period | (181,215) | (120,151) |
Adjustments for non-cash items: | ||
Depreciation | 33 | 48 |
Loss on settlement of debt | 51,839 | - |
Interest expense | 3,141 | 825 |
Net changes in non-cash working capital items: | ||
Other receivables | (907) | (1,378) |
Prepaid expenses and deposits | 2,993 | 9,486 |
Trade and other payables | (306,300) | 40,239 |
Net cash used in operating activities | (430,416) | (70,931) |
INVESTING ACTIVITIES | ||
Expenditures on exploration and evaluation assets | (44,469) | (24,413) |
Net cash used in investing activities | (44,469) | (24,413) |
FINANCING ACTIVITIES | ||
Advance from related party | - | 94,407 |
Proceeds from issue of shares, net of share issue costs | 757,728 | - |
Net cash provided by financing activities | 757,728 | 94,407 |
NET INCREASE (DECREASE) IN CASH | 282,843 | (937) |
CASH, BEGINNING OF THE PERIOD | 9,641 | 4,718 |
CASH, END OF THE PERIOD | 292,484 | 3,781 |
Note 12 - Supplemental cash flow information.
See accompanying notes to the condensed interim consolidated financial statements.
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MONTERO MINING AND EXPLORATION LTD.
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2024 AND 2023
(Unaudited - Expressed in Canadian dollars)
-
NATURE AND CONTINUANCE OF OPERATIONS
Montero Mining and Exploration Ltd ("Montero" or the "Company") was incorporated on October 5, 2006, under the laws of British Columbia, Canada. Montero is engaged in the acquisition and exploration of mineral properties.
Montero is a publicly listed company with its shares listed on the TSX Venture Exchange ("TSX-V"). The Company's registered office is located at 1040 West Georgia Street, Suite 1900, Vancouver, BC, V6E 4H3 and its head office address is 750 West Pender Street, Suite 401, Vancouver, BC V6C 2T7.
Going Concern
These condensed interim consolidated financial statements have been prepared using International Financial Reporting Standards ("IFRS") applicable to a going concern, which assume that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. Different bases of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. As at March 31, 2024, the Company had not advanced its exploration and evaluation assets to commercial production and is not able to finance day to day activities through operations. The Company's continuation as a going concern is dependent upon the successful results from its mineral property exploration activities and its ability to attain profitable operations and generate funds there from and/or raise equity capital or borrowings sufficient to meet current and future obligations. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. When further funds are required, they will be financed through a private placement of common shares or by debt instruments. - BASIS OF PREPARATION Statement of Compliance
These condensed interim consolidated financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting under International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB"). These condensed interim consolidated financial statements follow the same accounting policies and methods of application as the most recent annual consolidated financial statements of the Company. These condensed interim consolidated financial statements do not contain all of the information required for full annual consolidated financial statements. Accordingly, these condensed interim consolidated financial statements should be read in conjunction with the Company's most recent annual consolidated financial statements for the year ended December 31, 2023, which were prepared in accordance with IFRS as issued by the IASB.
The preparation of condensed interim consolidated financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies. The areas involving a higher degree of judgment of complexity, or areas where assumptions and estimates are significant to the condensed interim consolidated financial statements are disclosed in Note 3.
The condensed interim consolidated financial statements for the three months ended March 31, 2024 were authorized for issue on May 30, 2024 by the Audit Committee of the Company.
Basis of Measurement
These condensed interim consolidated financial statements have been prepared on an accrual basis and are based on the historical cost basis as modified by any revaluation of financial assets measured at fair value. The condensed interim consolidated financial statements are presented in Canadian dollars ("CAD"), which is also the Company's functional currency.
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MONTERO MINING AND EXPLORATION LTD.
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2024 AND 2023
(Unaudited - Expressed in Canadian dollars)
-
BASIS OF PREPARATION (continued) Basis of Consolidation
The condensed interim consolidated financial statements include the accounts of Montero, the parent company, and its controlled subsidiaries, after the elimination of all intercompany balances and transactions. Control is achieved when the Company has the power to govern the financial and operating policies of an entity to obtain benefits from its activities. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date that such control ceased. The condensed interim financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. - MATERIAL ACCOUNTING POLICY INFORMATION
The preparation of these condensed interim financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed interim consolidated financial statements and reported amounts of expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on managements' experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. Areas requiring a significant degree of estimation relate to the recoverability of deferred tax assets, fair value measurements of financial instruments and share- based payments. - PLANT AND EQUIPMENT
Field | Furniture and | ||
Equipment | Fixtures | TOTAL | |
$ | $ | $ | |
Cost: | |||
Balance, March 31, 2024 and December 31, 2023 | 39,994 | 3,086 | 43,080 |
Accumulated Depreciation: | |||
Balance, December 31, 2023 | 39,576 | 3,073 | 42,649 |
Depreciation | 31 | 2 | 33 |
Balance, March 31, 2024 | 39,607 | 3,075 | 42,682 |
Net Book Value | |||
Balance, December 31, 2023 | 418 | 13 | 431 |
Balance, March 31, 2024 | 387 | 11 | 398 |
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MONTERO MINING AND EXPLORATION LTD.
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2024 AND 2023
(Unaudited - Expressed in Canadian dollars)
5. EXPLORATION AND EVALUATION PROJECTS
Details of the Company's exploration and evaluation activity for the three months ended March 31, 2024 and year ended December 31,2023 are as follows:
Avispa Copper | ||||
Molybdenum Project | ||||
$ | ||||
Balance, December 31, 2023 | 819,541 | |||
Costs incurred during the period | ||||
Consultants | 21,964 | |||
Field and camp costs | 238 | |||
Licenses and claims | 14,881 | |||
Project and administration | 7,386 | |||
Total costs | 44,469 | |||
Balance, March 31, 2024 | 864,010 | |||
Isabella Gold/Silver | Avispa Copper | Total | ||
Project | Molybdenum Project | |||
$ | $ | $ | ||
Balance, December 31, 2022 | 97,917 | 461,777 | 559,694 | |
Costs incurred during the year | ||||
Assays | - | 13,211 | 13,211 | |
Consultants | - | 83,010 | 83,010 | |
Field and camp costs | - | 7,660 | 7,660 | |
Licenses and claims | - | 230,776 | 230,776 | |
Project and administration | - | 22,227 | 22,227 | |
Travel and accommodation | - | 880 | 880 | |
Total costs | - | 357,764 | 357,764 | |
Impairment | (97,917) | - | (97,917) | |
Balance, December 31, 2023 | - | 819,541 | 819,541 |
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MONTERO MINING AND EXPLORATION LTD.
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2024 AND 2023
(Unaudited - Expressed in Canadian dollars)
5. EXPLORATION AND EVALUATION PROJECTS (continued)
-
CHILE
Isabella Gold Silver Project
On August 5, 2020, the Company signed a Binding Purchase and Sale Agreement to acquire a 100% interest in a private Chilean company Minera Joy SpA ("ChileCo"). At that time ChileCo directly held 100% of the mineral rights to 38 mineral exploration concessions and had two subsidiaries with additional minerals rights. The 38 mineral exploration concessions were not renewed and have been allowed to lapse.
The Company, through ChileCo, held an 85% equity interest in Subsidiary 1 which held 16 exploration mining concessions ("Isabelle West Concessions") which due to poor exploration results have not been renewed and have been allowed to lapse.
Due to poor drilling results, during the year ended December 31, 2022, the Company recorded an impairment of $294,965 relating to costs incurred on the Isabella West exploration mining concessions that were allowed to lapse.
The Company, through ChileCo, holds 100% interest in Subsidiary 2 (Minera Joy East SpA) which was earning an 85% interest in 151 exploration mining concessions ("Isabella East Concessions") held by a local party, by making cash payments totaling US $450,000 by August 2022.
Due to poor drilling results on the Isabella East Concessions the Company elected to terminate the earn-in option agreement and rights to the Isabella East concessions on August 31, 2021 resulting in an impairment of $1,018,964. ChileCo now only holds 6 exploration mining concessions (the "Roy Claims") which are located east of the Isabella east concessions. The carrying value of the Isabella Gold Silver Project at December 31, 2023 and 2022 consists of costs relating to the Roy Claims.
During year end 2023, the Company recorded an impairment of $97,917 relating to costs incurred on the Isabella Gold Silver project as management does not expect to renew the Roy Claims.
Avispa Copper Molybdenum Project
The Company applied for exploration mining concessions in northern Atacama in October 2019 to explore for copper and molybdenum and these were awarded in October 4, 2020. The Company submitted further applications in April 2021 and on March 14, 2022, and was awarded further exploration concessions that includes the original Avispa and recently awarded and adjacent Abeja exploration concessions.
During the three months ended March 31, 2024, the Company capitalized $44,469 (December 31,2023 - $357,764) in costs related to the Avispa Copper Molybdenum Project. - TANZANIA
Montero's Wigu Hill Rare Earth Element Retention License was expropriated by the Tanzanian government in 2018 when the Mining (Local Content) Regulations 2018, published on January 10, 2018, cancelled all previously issued Retention Licenses. The Company commenced exploration activities on the project in March 2008 under a prospecting license, before obtaining a five-year Retention License for the property in 2015. On January 10, 2018 the Government of Tanzania cancelled all Retention Licenses at which point they ceased to have any legal effect.
The Company is seeking damages from the Tanzanian government over the expropriation of the Retention Licenses before the International Centre for Settlement of Investment Disputes, part of the World Bank group. An arbitration process is underway, but the outcome remains uncertain at this time (Note 11).
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Montero Mining and Exploration Ltd. published this content on 31 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2024 07:38:04 UTC.