SPHINX RESOURCES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS
Quarterly Highlights
Three months ended May 31, 2021
SPHINX RESOURCES LTD.
Management's Discussion and Analysis - Quarterly Highlights
Three months ended May 31, 2021
This Management's Discussion and Analysis - Quarterly Highlights ("MD&A Highlights") of the financial position and results of operations reviews the activities, results of operations and financial position of Sphinx Resources Ltd. ("Sphinx" or the "Corporation") for the three months ended May 31, 2021 ("Q1-22"), together with certain trends and factors that are expected to have an impact in the future. This MD&A Highlights should be read in conjunction with the Corporation's condensed interim financial statements as at May 31, 2021 prepared in accordance with the International Financial Reporting Standards ("IFRS"), as well as with the management discussion and analysis for the year ended February 29, 2021. All dollar amounts are expressed in Canadian dollars, the functional currency of the Corporation, unless otherwise stated.
Further information regarding the Corporation and its operations are filed electronically on the System for Electronic Document Analysis and Retrieval (SEDAR) in Canada and can be found on www.sedar.com. The following abbreviations are used to describe the periods under review throughout this MD&A Highlights:
Abbreviation | Period |
Fiscal 2021 | March 1, 2020 - February 28, 2021 |
Q1-21 | March 1, 2020 - May 31, 2020 |
Q2-21 | June 1, 2020- August 31, 2020 |
Q3-21 | September 1, 2020 - November 30, 2020 |
Q4-21 | December 1, 2020 - February 29, 2021 |
Fiscal 2022 | March 1, 2021 - February 29, 2022 |
Q1-22 | March 1, 2021 - May 31, 2021 |
Q2-22 | June 1, 2021- August 31, 2021 |
Q3-22 | September 1, 2021 - November 30, 2021 |
Q4-22 | December 1, 2021 - February 29, 2022 |
Fiscal 2023 | March 1, 2022 - February 29, 2023 |
The technical information contained in this MD&A has been reviewed and verified by Sphinx's Director and interim CFO, Pierre-André Viens, P.Eng., CFA, MBA, M.Sc. who is a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
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NATURE OF ACTIVITIES
Sphinx was incorporated on June 28, 2005 and is governed by the Canada Business Corporations Act. The Corporation is a reporting issuer in Alberta, British Columbia, Ontario and Québec and its shares are listed on the TSX Venture Exchange (the "Exchange") under the symbol SFX. The Corporation is engaged in the acquisition, exploration and development of mineral projects in Québec, Canada. - OVERVIEW AND HIGHLIGHTS
Sphinx is a mineral exploration company that focuses its activities in southwestern Quebec in search of deposits of precious metals (palladium, platinum, gold and silver) and base metals (zinc, copper, lead). Sphinx is particularly active in the MRC Pontiac where its President and Chief Executive Officer resides. It has a strong local shareholding that contributes towards social acceptability.
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SPHINX RESOURCES LTD.
Management's Discussion and Analysis - Quarterly Highlights
Three months ended May 31, 2021
3. EXPLORATION PROJECTS
For mineral exploration projects that have not reached technical feasibility, exploration and evaluation expenditures are charged to operations as they are incurred. The Corporation's exploration and evaluation expenditures incurred are as follows:
Q1-22 | Q1-21 | |
Calumet-Sud | $ | $ |
Geology | 9,602 | 7,133 |
Recharge to partner | (188) | (1,754) |
Tax credits | (2,401) | (1,506) |
7,013 | 3,873 | |
Calumet-Nord | ||
Project acquisition and maintenance | 469 | 171 |
Geology | 131 | 368 |
Tax credits | (37) | (103) |
Green Palladium | 563 | 436 |
Geology | 425 | - |
Tax credits | (119) | |
New Calumet Mine project | 306 | - |
Project acquisition and maintenance | 716 | - |
Share issuance | 150,000 | - |
Geology | 3,263 | - |
Tax credits | (913) | - |
Soufflot | 153,066 | - |
Project acquisition and maintenance | - | 363 |
Geology | - | 333 |
Tax credits | - | (93) |
- | 603 | |
Total | ||
Project acquisition and maintenance | 1,185 | 534 |
Share issuance | 150,000 | - |
Geology | 13,421 | 7,834 |
Recharge to partner | (188) | (1,754) |
Tax credits | (3,470) | (1,702) |
Total exploration and evaluation expenditures | 160,948 | 4,912 |
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SPHINX RESOURCES LTD.
Management's Discussion and Analysis - Quarterly Highlights
Three months ended May 31, 2021
3. EXPLORATION PROJECTS (CONT'D)
3.1 New Calumet Mine project
On March 8, 2021, the Corporation signed an agreement with Golden Calumet Exploration Ltd and Geotest Corporation, to acquire 100% of 14 claims in Pontiac District, for consideration consisting of 7,500,000 common shares (valued at $150,000) and a 1% NSR royalty, subject to a buyback option for $1,000,000. The buyback option will be indexed for cost of living starting January 1, 2022.
4. RESULTS OF OPERATIONS
In Q1-22, the Corporation reported a loss of $231,100 ($61,764 in Q1-21). See Section 3.1 which explains the main variance in loss, following the issuance of 7,500,000 valued at $150,000.
General and administration expenses details are as follows:
Q1-22 | Q1-21 | |
$ | $ | |
Directors' fees | 8,500 | 14,000 |
Filing and transfer agent fees | 5,279 | 2,155 |
Management fees | 18,713 | 18,113 |
Office and miscellaneous | 1,244 | 6,238 |
Professional fees | 16,931 | 5,480 |
Promotion | 1,528 | 7,487 |
Salaries and benefit | 24,977 | 23,769 |
Governmental grants | (11,104) | (4,166) |
Share-based payments | 2,704 | 4,554 |
Travel | - | 744 |
General and administration | 68,772 | 78,374 |
July 22, 2021 | ||
(s) Jeremie Ryan | (s) Pierre-André Viens | |
Jeremie Ryan | Pierre-André Viens | |
Chief Executive Officer | Chief Financial Officer |
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Sphinx Resources Ltd. published this content on 22 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2021 13:31:06 UTC.
