05/17/2021 | Press release | Distributed by Public on 05/17/2021 05:32
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IMPORTANT NOTICE ABOUT INFORMATION IN THIS PROSPECTUS SUPPLEMENT
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| | | | S-4 | | |
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FINANCIAL INFORMATION
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CURRENCY PRESENTATION AND EXCHANGE RATE INFORMATION
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
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CAUTIONARY NOTE TO UNITED STATES INVESTORS REGARDING PRESENTATION OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES
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DOCUMENTS INCORPORATED BY REFERENCE
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DOCUMENTS FILED AS PART OF THE REGISTRATION STATEMENT
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| | | | S-10 | | |
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SUMMARY OF THE OFFERING
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THE COMPANY
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| | | | S-12 | | |
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RISK FACTORS
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CONSOLIDATED CAPITALIZATION
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USE OF PROCEEDS
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PLAN OF DISTRIBUTION
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DESCRIPTION OF SECURITIES BEING DISTRIBUTED
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PRIOR SALES
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TRADING PRICE AND VOLUME
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CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS
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INTEREST OF EXPERTS
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LEGAL MATTERS
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ENFORCEABILITY OF CERTAIN CIVIL LIABILITIES
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| | | | S-29 | | |
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AUDITOR, TRANSFER AGENT AND REGISTRAR
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WHERE YOU CAN FIND ADDITIONAL INFORMATION
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Three months
ended March 31, 2021 |
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Three months
ended March 31, 2020 |
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Year ended
December 31, 2020 |
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Year ended
December 31, 2019 |
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Year ended
December 31, 2018 |
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High
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| | | | 1.2828 | | | | | | 1.4496 | | | | | | 1.4496 | | | | | | 1.3600 | | | | | | 1.3642 | | |
Low
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| | | | 1.2455 | | | | | | 1.2970 | | | | | | 1.2718 | | | | | | 1.2988 | | | | | | 1.2288 | | |
Average
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| | | | 1.2660 | | | | | | 1.3449 | | | | | | 1.3415 | | | | | | 1.3269 | | | | | | 1.2957 | | |
Period End
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| | | | 1.2575 | | | | | | 1.4187 | | | | | | 1.2732 | | | | | | 1.2988 | | | | | | 1.3642 | | |
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Date of Issuance
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Price Per Common Share
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Number of Common Shares
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June 4, 2020(1)
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C$3.40
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14,753
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September 4, 2020(2)
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C$3.86
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10,204,510
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September 16, 2020(3)
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C$2.39
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20,000
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September 16, 2020(3)
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C$3.54
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13,333
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October 2, 2020(3)
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C$2.39
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40,000
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October 8, 2020(4)
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C$3.49
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1,687,401
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January 4, 2021(3)
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C$2.39
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20,000
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January 8, 2021(5)
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C$3.60
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99,848
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January 29, 2021(6)
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C$3.31
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10,253,128
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February 1, 2021(7)
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US$2.14
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2,336,448
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March 3, 2021(7)
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US$2.14
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2,336,448
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March 16, 2021(3)
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C$2.39
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20,000
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April 21, 2021(3)
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C$2.39
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1,100
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April 23, 2021(3)
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C$2.39
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48,900
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Date of Grant
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Number of Options
Granted |
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Exercise Price
(C$) |
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Expiry Date
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June 15, 2020
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120,000
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$3.10
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June 15, 2023
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December 18, 2020
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3,590,000
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$3.88
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December 18, 2023
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Date of Grant
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Number of RSUs/DSUs Granted
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Expiry Date
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June 9, 2020
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154,932 RSUs
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December 31, 2022
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June 30, 2020
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36,834 DSUs
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N/A
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September 30, 2020
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35,852 DSUs
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N/A
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December 31, 2020
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48,835 DSUs
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N/A
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March 31, 2021
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46,726 DSUs
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N/A
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Date of Issuance
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Number of Warrants
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Exercise Price
(C$) |
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Expiry Date
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July 9, 2020
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1,000,000
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$3.50
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July 9, 2022
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Month
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High
(C$) |
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Low
(C$) |
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Total Volume
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May 1, 2021 to May 14, 2021
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| | | $ | 3.02 | | | | | $ | 2.53 | | | | | | 5,578,678 | | |
April 2021
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| | | $ | 2.96 | | | | | $ | 2.64 | | | | | | 4,993,680 | | |
March 2021
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| | | $ | 3.40 | | | | | $ | 2.54 | | | | | | 10,277,995 | | |
February 2021
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| | | $ | 4.03 | | | | | $ | 3.17 | | | | | | 11,330,223 | | |
January 2021
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| | | $ | 4.40 | | | | | $ | 3.09 | | | | | | 12,475,123 | | |
December 2020
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| | | $ | 4.28 | | | | | $ | 3.34 | | | | | | 7,494,348 | | |
November 2020
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| | | $ | 4.00 | | | | | $ | 3.23 | | | | | | 8,212,055 | | |
October 2020
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| | | $ | 3.86 | | | | | $ | 3.23 | | | | | | 9,248,073 | | |
September 2020
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| | | $ | 4.15 | | | | | $ | 3.35 | | | | | | 12,484,523 | | |
August 2020
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| | | $ | 5.12 | | | | | $ | 3.50 | | | | | | 16,153,648 | | |
July 2020
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| | | $ | 4.94 | | | | | $ | 3.25 | | | | | | 22,065,093 | | |
June 2020
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| | | $ | 3.73 | | | | | $ | 2.83 | | | | | | 13,252,486 | | |
May 2020
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| | | $ | 4.00 | | | | | $ | 2.85 | | | | | | 18,287,016 | | |
Month
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High
(US$) |
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Low
(US$) |
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Total Volume
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May 1, 2021 to May 14, 2021
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| | | $ | 2.48 | | | | | $ | 2.08 | | | | | | 799,790 | | |
April 2021
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| | | $ | 2.36 | | | | | $ | 2.14 | | | | | | 1,229,468 | | |
March 2021
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| | | $ | 2.71 | | | | | $ | 2.03 | | | | | | 3,450,159 | | |
February 2021
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| | | $ | 3.21 | | | | | $ | 2.51 | | | | | | 2,575,419 | | |
January 2021
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| | | $ | 3.45 | | | | | $ | 2.42 | | | | | | 2,599,557 | | |
December 2020
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| | | $ | 3.37 | | | | | $ | 2.61 | | | | | | 3,458,481 | | |
November 2020
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| | | $ | 3.07 | | | | | $ | 2.48 | | | | | | 1,944,892 | | |
October 2020
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| | | $ | 2.93 | | | | | $ | 2.42 | | | | | | 1,823,511 | | |
September 2020
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| | | $ | 3.16 | | | | | $ | 2.50 | | | | | | 3,487,003 | | |
August 2020
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| | | $ | 3.90 | | | | | $ | 2.64 | | | | | | 3,816,864 | | |
July 2020
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| | | $ | 3.70 | | | | | $ | 2.39 | | | | | | 4,950,605 | | |
June 2020
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| | | $ | 2.75 | | | | | $ | 2.08 | | | | | | 3,846,245 | | |
May 2020
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| | | $ | 2.89 | | | | | $ | 2.04 | | | | | | 3,666,946 | | |
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CAUTION REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
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| | | | 2 | | |
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CAUTIONARY NOTE TO UNITED STATES INVESTORS REGARDING PRESENTATION OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES
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| | | | 4 | | |
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DOCUMENTS INCORPORATED BY REFERENCE
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| | | | 4 | | |
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DESCRIPTION OF THE BUSINESS
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| | | | 6 | | |
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DESCRIPTION OF SHARE CAPITAL
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| | | | 13 | | |
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DESCRIPTION OF COMMON SHARES
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| | | | 13 | | |
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DESCRIPTION OF SUBSCRIPTION RECEIPTS
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| | | | 13 | | |
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DESCRIPTION OF DEBT SECURITIES
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| | | | 13 | | |
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DESCRIPTION OF WARRANTS
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| | | | 15 | | |
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DESCRIPTION OF UNITS
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| | | | 15 | | |
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EARNINGS COVERAGE RATIOS
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TRADING PRICE AND VOLUME
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CAPITALIZATION
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| | | | 16 | | |
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PRIOR SALES
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| | | | 16 | | |
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USE OF PROCEEDS
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| | | | 16 | | |
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PLAN OF DISTRIBUTION
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| | | | 16 | | |
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SELLING SECURITYHOLDERS
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| | | | 17 | | |
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RISK FACTORS
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| | | | 19 | | |
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CERTAIN INCOME TAX CONSIDERATIONS
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| | | | 24 | | |
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LEGAL MATTERS
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| | | | 24 | | |
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AUDITORS, TRANSFER AGENT AND REGISTRAR
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| | | | 24 | | |
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INTEREST OF EXPERTS
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| | | | 24 | | |
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SERVICE OF PROCESS AND ENFORCEABILITY OF CIVIL LIABILITIES
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| | | | 25 | | |
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DOCUMENTS FILED AS PART OF THE
REGISTRATION STATEMENT |
| | | | 26 | | |
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WHERE TO FIND MORE INFORMATION
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| | | | 26 | | |
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Disclosure in the May 2020 Prospectus Supplement
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Use of Proceeds (as at December 31, 2020)
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The net proceeds from the Offering are expected to be used by the Company for working capital and general corporate purposes and primarily for the exploration, development and/or improvement of the Company's existing mine properties, including those relating to bringing Relief Canyon into commercial production and the operation of the Cosalá Operations.
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The net proceeds of the May 2020 Offering have been used as follows:
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approximately C$19.7 million have been used to advance development at Relief Canyon, including contractor and operating costs, leach pad construction, payroll and benefits, reagent and other operating supplies, equipment lease payments and land payments;
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approximately C$3.3 million have been used for care and maintenance at the Cosalá Operations, including payroll and concession payments; and
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approximately C$4.4 million have been used for working capital and other general corporate purposes.
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Disclosure in the August 2020 Prospectus
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Use of Proceeds (as at December 31, 2020)
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The Company intends to use the net proceeds of the Offering to bring the Relief Canyon mine into commercial production, to resume mining activities and operations at the Cosalá Operations and for working capital and general corporate purposes, as set out in further detail below:
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The net proceeds of the August 2020 Offering have been used as follows:
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approximately C$19.1 million for development costs to achieve commercial production at Relief Canyon;
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approximately C$3.6 million on care and maintenance costs at the Cosalá Operations;
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approximately C$3.5 million on repayment of debt obligation and debt servicing costs;
•
approximately C$1.0 million on general corporate and administrative expenses; and
•
approximately C$6.1 million on other
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| | Use of Proceeds | | |
Amount
(C$ million) |
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Relief Canyon development costs to achieve commercial production...............................
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5.9
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Resumption of mining activities and operations at the Cosalá Operations...........
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9.0
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Payment of suppliers.................................
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3.3
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Mine inspection and rehabilitation............
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1.2
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Working capital.........................................
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4.5
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General corporate and administrative expenses.....................................................
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1.3
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Additional working capital purposes...........
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17.1
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TOTAL.....................................................
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33.3
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Use of Proceeds(1)
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Amount
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(C$ million)
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Working capital purposes at Relief Canyon to proceed towards full production
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| | | | 7.9 | | |
Development and exploration at the Galena Complex
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| | | | 4.0 | | |
Care and maintenance at the Cosalá Operations(2)
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| | | | 2.2 | | |
General corporate and administrative expenses
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| | | | 1.6 | | |
Repayment of outstanding debt obligations
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| | | | 9.3(3) | | |
Working capital purposes
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| | | | 6.9 | | |
TOTAL
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| | | | 31.9 | | |
Net Cash Flows
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Amount
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(Over the 12-Month Period from the date of this Prospectus)
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(C$ million)
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Cash inflows | | | | | | | |
Net proceeds of the January 2021 Offering
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| | | | 31.9(1) | | |
Projected net cash flow from Relief Canyon
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| | | | 44.8 | | |
Total cash inflows
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| | | | 76.7 | | |
Cash outflows | | | | | | | |
Proceeds of the January 2021 Offering to advance Relief Canyon to full production
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| | | | (7.9) | | |
Galena Complex capital, development, exploration
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| | | | (7.9) | | |
Care and maintenance of Cosalá Operations
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| | | | (9.5)(2) | | |
Existing debt obligations and interest
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| | | | (10.3) | | |
General corporate and administrative expenses
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| | | | (5.5) | | |
Working capital purposes
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| | | | (17.0) | | |
Total cash outflows
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| | | | (58.1) | | |
TOTAL NET CASH FLOW
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| | | | 18.6 | | |