Fury Gold Mines Ltd 6-K, filed May 13, 2020

Fury Gold Mines Ltd (FURY)

6-K 2020-05-13 For: 2020-03-31

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Added on April 10, 2026

About this 6-K

Fury Gold Mines Ltd filed this 6-K on May 13, 2020.

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	AURYN RESOURCES INC.

Date: May 13, 2020	By:	/s/ Stacy Rowa
		Stacy Rowa
		Chief Financial Officer

	As at March 31,	As at December 31,
	2020	2019

Assets

Current assets:
Cash	$13,208	$660
Marketable securities	186	346
Amounts receivable	71	55
Prepaid expenses and deposits	833	651

	14,298	1,712

Non-current assets:
Restricted cash	115	115
Prepaid expenses and deposits	151	149
Mineral property interests (note 3)	40,177	39,714
Equipment	1,212	1,272
	41,655	41,250
Total assets	$55,953	$42,962


Liabilities and Equity

Liabilities

Current liabilities:
Accounts payable and accrued liabilities	$713	$1,067
Flow-through share premium liability (note 4)	–	7
Bridge loan (note 5)	2,986	2,931

	3,699	4,005

Non-current liabilities:
Provision for site reclamation and closure (note 6)	2,250	2,134
Total liabilities	$5,949	$6,139

Equity:
Share capital	$144,340	$129,413
Share option and warrant reserve	10,417	9,992
Accumulated other comprehensive income	407	22
Deficit	(105,160)	(102,604)

Total equity	$50,004	$36,823

Total liabilities and equity	$55,953	$42,962

Nature of operations and going concern (note 1)
Subsequent events (note 3(a))

Approved on behalf of the Board of Directors:


"Shawn Wallace"		"Steve Cook"
Chief Executive Officer and Director		Director

	Three months ended March 31,
	2020	2019

Operating expenses
Exploration and evaluation costs (note 7)	$932	$775
Fees, salaries and other employee benefits	454	533
Insurance	81	77
Legal and professional fees	76	67
Marketing and investor relations	398	250
Office and administration	151	120
Regulatory, transfer agent and shareholder information	71	67
	2,163	1,889

Other expenses (income):
Project investigation costs	36	41
Accretion of provision for site reclamation and closure (note 6)	9	11
Interest and other income	(32)	(1)
Finance expense related to loan	124	–
Amortization of flow-through share premium (note 4)	(7)	(32)
Loss on marketable securities	160	–
Loss on derecognition of bridge loan (note 5)	159	–
Foreign exchange loss	1	18
	450	37

Net loss before income taxes	2,613	1,926

Deferred income tax recovery (note 5)	(57)	–
Loss for the period	$2,556	$1,926

Other comprehensive (income) loss, net of tax
Items that may be reclassified subsequently to profit or loss:
Unrealized currency (gain) loss on translation of foreign operations	(385)	74
Other comprehensive (income) loss for the period	(385)	74
Total comprehensive loss for the period	$2,171	$2,000

Basic and diluted loss per share (note 13)	$0.03	$0.02

Basic and diluted weighted average number of shares outstanding (note 13)	100,149,220	90,981,510

				Accumulated other
	Number of		Share option and	comprehensive
	common shares	Share capital	warrant reserve	income (loss)	Deficit	Total

Balance at December 31, 2018	90,387,816	$121,988	$6,937	$225	$(88,671)	$40,479

Comprehensive loss for the period	–	–	–	(74)	(1,926)	(2,000)
Shares issued pursuant to offering, net of share issue costs and flow-through liability	3,284,375	5,122	–	–	–	5,122
Share options exercised (note 8 (b) iv)	835,000	871	(426)	–	–	445
Share-based compensation (note 9 (a))	–	–	209	–	–	209

Balance at March 31, 2019	94,507,191	$127,981	$6,720	$151	$(90,597)	$44,255

Balance at December 31, 2019	95,231,775	$129,413	$9,992	$22	$(102,604)	$36,823

Comprehensive loss for the period	–	–	–	385	(2,556)	(2,171)
Shares issued pursuant to offering, net of share issue costs (note 8 (b) i)	9,375,000	14,771	–	–	–	14,771
Share options exercised (note 8 (b) ii)	75,000	156	(49)	–	–	107
Fair value of conversion feature, net of tax (note 5)	–	–	154	–	–	154
Share-based compensation (note 9 (a))	–	–	320	–	–	320

Balance at March 31, 2020	104,681,775	$144,340	$10,417	$407	$(105,160)	$50,004

Auryn Resources Inc.
Condensed Consolidated Interim Statements of Financial Position

Unaudited (Expressed in thousands of Canadian dollars)

Subsidiary	Place of incorporation	Functional Currency	Beneficial Interest
North Country Gold Corp. (“North Country”)	BC, Canada	CAD	100%
Homestake Resource Corporation (“Homestake”)	BC, Canada	CAD	100%
Corisur Peru, S.A.C. (“Corisur”)	Peru	USD	100%
Sombrero Minerales, S.A.C. (“Sombrero Minerales”)	Peru	USD	100%
Magma Minerals S.A.C. (“Magma”)	Peru	USD	100%
Homestake Royalty Corporation (inactive)	BC, Canada	CAD	100%

Due Dates	Payment & Work Expenditure Status	Property Payments (in ‘000 US$)	Work Expenditures (in ‘000 US$)
Effective Date (June 22, 2018)	Completed	50	-
June 22, 2019*	Deferred*	50	150
June 22, 2020*		100	150
June 22, 2021*		200	500
June 22, 2022*		300	700
June 22, 2023*		900	1,500
Total		1,600	3,000

	Committee Bay & Gibson MacQuoid	Homestake Ridge	Peru	Total
Balance at December 31, 2018	$18,871	$16,060	$4,141	$39,072
Additions	11	-	949	960
Impairment of mineral property interests (note 3 (a))	-	-	(337)	(337)
Change in estimate of provision for site reclamation and closure (note 6)	203	-	-	203
Currency translation adjustment	-	-	(184)	(184)
Balance at December 31, 2019	$19,085	$16,060	$4,569	$39,714
Additions	-	-	1	1
Change in estimate of provision for site reclamation and closure (note 6)	107	-	-	107
Currency translation adjustment	-	-	355	355
Balance at March 31, 2020	$19,192	$16,060	$4,925	$40,177

	Shares issued	Flow-through share price	Premium per flow- through share	Flow-through premium liability
July 11, 2019	633,334	$3.00	$0.88	$557

	Flow-through funding and expenditures
	BC	Nunavut	Total	Flow-through premium liability
Balance at December 31, 2018	$737	$433	$1,170	$317
Flow-through funds raised	-	1,900	1,900	557
Flow-through eligible expenditures	(737)	(2,309)	(3,046)	(867)
Balance at December 31, 2019	$-	$24	$24	$7
Flow-through eligible expenditures	-	(24)	(24)	(7)
Balance at March 31, 2020	$-	$-	$-	$-

	Liability Component	Equity Component	Total

Amended Bridge Loan	$2,912	$211	$3,123
Deferred tax impact	-	(57)	(57)
Impact on statement of financial position	$2,912	$154	$3,066

Carrying value of Bridge Loan to be derecognized	$2,981
Amended Bridge Loan assumed, including transaction costs incurred	$3,140
Loss on derecognition of Bridge Loan	$159

Fair value of Amended Bridge Loan on initial recognition	$2,912
Finance expense	74
Closing balance at March 31, 2020	$2,986

	March 31, 2020	December 31, 2019

Opening balance	$2,134	$1,891
Accretion	9	40
Change in estimate	107	203
Closing balance	$2,250	$2,134

	Committee Bay & Gibson MacQuoid	Homestake Ridge	Peru	Total
Assaying	$10	$2	$4	$16
Exploration Drilling	12	-	-	12
Camp cost, equipment and field supplies	62	8	58	128
Geological consulting services	-	104	67	171
Permitting, environmental and community costs	5	7	91	103
Expediting and mobilization	5	-	5	10
Salaries and wages	89	41	196	326
Fuel and consumables	-	-	2	2
Aircraft and travel	-	2	35	37
Share based compensation	21	11	95	127
Total for the three months ended March 31, 2020	$204	$175	$553	$932

	Committee Bay & Gibson MacQuoid	Homestake Ridge	Peru	Total
Assaying	$7	$8	$14	$29
Camp cost, equipment and field supplies	68	5	72	145
Geological consulting services	-	-	206	206
Permitting, environmental and community costs	6	2	151	159
Expediting and mobilization	-	-	5	5
Salaries and wages	75	26	67	168
Fuel and consumables	-	-	5	5
Aircraft and travel	4	-	10	14
Share based compensation	15	6	23	44
Total for the three months ended March 31, 2019	$175	$47	$553	$775

	Number of share options	Weighted average exercise price
Outstanding, December 31, 2018	6,205,000	$1.85
Granted	3,295,000	1.91
Exercised	(926,250)	0.62
Expired	(230,000)	2.33
Forfeited	(51,250)	1.89
Outstanding, December 31, 2019	8,292,500	$2.00
Exercised	(75,000)	1.42
Expired	(30,000)	1.96
Outstanding, March 31, 2020	8,187,500	$2.01

	Outstanding			Exercisable
Expiry date	Number of options	Exercise price	Remaining contractual life (years)	Number of options	Exercise price	Remaining contractual life (years)
Aug 17, 2020	915,000	$1.30	0.38	915,000	$1.30	0.38
June 20, 2021	2,085,000	2.63	1.22	2,085,000	2.63	1.22
Jan 10, 2022	440,000	3.22	1.78	440,000	3.22	1.78
June 20, 2023	651,875	1.42	3.22	651,875	1.42	3.22
June 26, 2023	900,000	1.42	3.24	900,000	1.42	3.24
Feb 7, 2024	200,625	1.36	3.86	148,125	1.36	3.86
Apr 9, 2024	2,755,000	1.96	4.03	1,721,875	1.96	4.03
Aug 21, 2024	70,000	1.82	4.39	35,000	1.82	4.39
Nov 20, 2024	170,000	1.82	4.64	63,750	1.82	4.64
	8,187,500	$2.00	2.65	6,960,625	$2.02	2.39

	Number of common shares	Impact on share capital
Common shares issued at $1.60 per share	9,375,000	$15,000
Cash share issue costs	-	(229)
Proceeds net of share issue costs	9,375,000	$14,771

	Three months ended
	March 31, 2019
Risk-free interest rate	1.78%
Expected dividend yield	Nil
Share price volatility	64%
Expected forfeiture rate	0%
Expected life in years	4.52

	Warrants outstanding	Exercise price
Outstanding, December 31, 2018	-	$-
Issued	500,000	2.00
Outstanding, December 31, 2019 and March 31, 2020	500,000	$2.00

March 31, 2020	Canada	Peru	Total

Restricted cash and cash equivalents	$115	$-	$115
Prepaid expenses and deposits, non-current	-	151	151
Equipment, net	1,166	46	1,212
Mineral property interests	35,252	4,925	40,177
	$36,533	$5,122	$41,655

December 31, 2019	Canada	Peru	Total

Restricted cash and cash equivalents	$115	$-	$115
Prepaid expenses and deposits, non-current	-	149	149
Equipment, net	1,202	70	1,272
Mineral property interests	35,145	4,569	39,714
	$36,462	$4,788	$41,250

	March 31, 2020	December 31, 2019

Financial assets denominated in foreign currencies	$21	$55
Financial liabilities denominated in foreign currencies	(112)	(80)
Net exposure	$(91)	$(25)

		PAGE
HIGHLIGHTS FOR THE NINE MONTHS ENDED MARCH 31, 2020 AND THE PERIOD UP TOMAY 12, 2020		3
1.1	Date and forward-looking statements	5
1.1.1	Forward-looking statements and risk factors	5
1.2.1	Description of business	6
1.2.2	Peruvian projects	7
Sombrero		7
Curibaya		13
Huilacollo		15
Baños del Indio		15
1.2.3	Committee Bay and Gibson MacQuoid projects	16
Committee Bay		16
Gibson MacQuoid		16
1.2.4	Homestake Ridge project	19
1.2.5	Qualified persons and technical disclosures	20
1.3	Selected annual financial information	22
1.4	Discussion of operations	23
1.5	Summary of quarterly results	25
1.6/1.7	Financial position and liquidity and capital resources	26
1.8	Off-balance sheet arrangements	31
1.9	Transactions with related parties	32
1.10	Subsequent events	32
1.11	Proposed transactions	32
1.12	Critical accounting estimates	32
1.13	Changes in accounting policies including initial adoption	34
1.14	Financial instruments and other instruments	34
1.15	Other requirements	35

Class		Cut off grade (g/t Au)	Tonnes (t)	Gold grade (g/t Au)	Contained Au (oz)
Indicated	Near Surface	3.0	1,760,000	7.72	437,000
	Underground	4.0	310,000	8.57	86,000

			2,070,000	7.85	524,000

Inferred	Near Surface	3.0	590,000	7.56	144,000
	Underground	4.0	2,340,000	7.65	576,000

			2,930,000	7.64	720,000

Net present value (NPV 5%) after tax and mining duties	US$108 million
Internal rate of return (IRR) after tax	23.6%
Pre-production capital costs	US$88 million
After tax payback period	36 months
All in sustaining costs (AISC) per ounce gold	US$670
PEA life of mine (LOM)	13 years
LOM metal production gold equivalent ounces	590,040 AuEq ounces
LOM average diluted head grade	6.42g/t AuEq
Peak year annual production (year three)	88,660 AuEq ounces
Average LOM payable production	45,400 AuEq ounces
LOM mineralized material mined	3.4 Million tonnes
Mining scenario tonnes per day	900 tonnes

		Average Grade				Metal Content
Classification	TonnageMt	Gold g/t	Silverg/t	Copper %	Lead%	Goldoz	Silver Moz	Copper Mlb	LeadMlb
Total Indicated	0.736	7.02	74.8	0.18	0.077	165,993	1.8	2.87	1.25
Total Inferred	5.545	4.58	100.0	0.13	0.142	816,719	17.8	15.87	17.34

		Average Grade				Metal Content
Cut-off g/t AuEq	TonnageMt	Goldg/t	Silverg/t	Copper%	Lead%	Goldoz	SilverMoz	CopperMlb	Lead Mlb
Total Indicated
5.0	0.372	10.99	131.3	0.20	0.120	131,463	1.6	1.7	0.99
4.0	0.465	9.57	111.2	0.20	0.105	142,911	1.7	2.0	1.07
3.0	0.592	8.18	90.5	0.19	0.090	155,730	1.7	2.5	1.18
2.0	0.736	7.02	74.8	0.18	0.077	165,993	1.8	2.9	1.25
1.0	0.862	6.19	65.2	0.17	0.069	171,441	1.8	3.1	1.32
Total Inferred
5.0	2.158	8.25	145.7	0.21	0.216	572,444	10.1	9.8	10.26
4.0	2.972	6.78	133.4	0.18	0.189	648,212	12.8	11.9	12.36
3.0	4.136	5.52	118.6	0.15	0.163	734,275	15.8	14.0	14.84
2.0	5.545	4.58	100.0	0.13	0.142	816,719	17.8	15.9	17.34
1.0	6.448	4.09	90.9	0.12	0.127	847,996	18.9	17.0	18.07

Expenditure	Initial (US$M)	Sustaining (US$M)
Mining Equipment	$3.0	$2.1
Surface mobile equipment	$3.5	$2.5
Capitalized Underground Development		$66.4
Tailings	$8.4
Site Development – Roads, Airport	$6.3
Camp Facilities	$3.2
Site Infrastructure	$3.5
Power Supply	$8.4
Process Plant	$26.2
Access Upgrades – barge landing and roads	$2.1
EPCM costs – 15% of directs	$8.7
Owner Costs – 10% of directs	$5.8
Reclamation – tailings		$3.5
Closure		$3.5
Water Treatment		$1.4
Environmental Permits/Baseline Data	$0.6
End of Life Salvage		$(3.5)

Area	Unit Cost (US$)	Life-of-Mine (US$)
Mining ($/t mined)	$63.50	$182.9 million
Processing ($/t milled)	$21.00	$71.9 million
General and Administration ($/t)	$14.00	$48.0 million
Environmental/Water Treatment	$0.82	$2.8 million
Community/Social	$0.17	$0.6 million
Total Operating Costs ($/t milled)	$89.39	$306.2 million

	NPV at 0% (US$M)	NPV at 5% (US$M)	NPV at 7% (US$M)	IRR	Payback (Mo)
Before Tax	$278	$170	$140	30.1%	26
After Tax	$184	$108	$87	23.6%	36

	Gold Price (US$/oz)	Silver Price (US$/oz)	NPV at 0% (US$M)	NPV at 5% (US$M)	IRR	Payback (Mo)
	$1,890	$16.80	$373	$239	39.4%	31
	$1,755	$15.60	$326	$206	35.8%	32
	$1,620	$14.40	$278	$173	32.0%	33
	$1,485	$13.20	$231	$141	28.0%	34
Base Case	$1,350	$12.00	$184	$108	23.6%	36
	$1,215	$10.80	$137	$75	18.8%	40
	$1,080	$9.60	$90	$42	13.2%	46
	$945	$8.40	$39	$6	6.4%	75

	Year ended	Year ended	Year ended
	December 31, 2019	December 31, 2018	December 31, 2017
			(Restated1)
Comprehensive loss for the period	$14,136	$17,389	$36,578
Net loss for the period	$13,933	$17,674	$36,500
Basic and diluted loss per share	$0.15	$0.21	$0.48
Total assets	$42,962	$43,523	$43,759
Total long-term liabilities	$2,134	$1,891	$1,662

Three months ended	Interest income	Net loss	Comprehensive loss	Loss per share
In thousands of Canadian dollars except per share amounts
	$	$	$	$
March 31, 2020	32	2,556	2,171	0.03
December 31, 2019	10	2,990	3,072	0.03
September 30, 2019	14	3,918	3,871	0.04
June 30, 2019	19	5,045	5,139	0.05
March 31, 2019	1	1,926	2,000	0.02
December 31, 2018	33	2,351	2,166	0.03
September 30, 2018	31	7,488	7,545	0.08
June 30, 2018	34	4,372	4,281	0.05

	March 31, 2020	December 31, 2019
Cash and restricted cash and cash equivalents	$13,323	$775
Mineral property interests	$40,177	$39,714
Current liabilities	$3,699	$4,005
Non-current liabilities	$2,250	$2,134

Contractual Obligations as of March 31, 2020	Payment terms	Amount
Accounts payable and accrued liabilities	Immediately	$713
Bridge loan and interest payable	By Sep 12, 2020	3,146
Total		$3,859

	Number of common shares	Impact on share capital
Common shares issued at $3.00 per share	633,334	$ 1,900
Cash share issue costs	-	(44)
Proceeds net of share issue costs	633,334	$1,856
Flow-through share premium liability	-	(557)
	633,334	$1,299