Fury Gold Mines Ltd 6-K, filed Nov 12, 2024

Fury Gold Mines Ltd (FURY)

6-K 2024-11-12 For: 2024-11-11

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Added on April 10, 2026

About this 6-K

Fury Gold Mines Ltd filed this 6-K on November 12, 2024.

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Fury Gold Mines Limited
Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of Canadian dollars – Unaudited)
			At September 30			At December 31
	Note		2024			2023
Assets
Current assets:
Cash			$	3,336		$	7,313
Marketable securities		3		2,176			1,166
Other investments		4		2,063			-
Accounts receivable				238			374
Prepaid expenses and deposits				560			592
				8,373			9,445
Non-current assets:
Restricted cash				144			144
Prepaid expenses and deposits				100			111
Property and equipment				396			588
Mineral interests		5		145,745			142,639
Investments in associates		6		29,341			36,248
				175,726			179,730
Total assets			$	184,099		$	189,175

Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities			$	623		$	1,034
Lease liability				109			154
Flow-through share premium liability		7		1,159			544
				1,891			1,732
Non-current liabilities:
Lease liability				-			74
Provision for site reclamation and closure				4,682			4,495
Total liabilities			$	6,573		$	6,301

Equity:
Share capital		10	$	312,814		$	310,277
Share option and warrant reserve		11		22,655			21,660
Accumulated other comprehensive loss				(11	)		(9	)
Deficit				(157,932	)		(149,054	)
Total equity			$	177,526		$	182,874
Total liabilities and equity			$	184,099		$	189,175

“Forrester A. Clark”		“Steve Cook”
Chief Executive Officer		Director

Fury Gold Mines Limited
Condensed Interim Consolidated Statements of Loss (Earnings) and Comprehensive Loss (Income)
(Expressed in thousands of Canadian dollars, except per share amounts – Unaudited)
			Three months ended September 30						Nine months ended September 30
	Note		2024			2023			2024			2023
Operating expenses:
Exploration and evaluation		8	$	2,318		$	3,839		$	4,794		$	6,528
Fees, salaries, and other employee benefits				412			445			1,517			1,842
Insurance				124			155			420			493
Legal and Professional				138			365			602			620
Marketing and investor relations				138			168			464			555
Office and administration				98			85			280			285
Regulatory and compliance				36			56			170			235
				3,264			5,113			8,247			10,558

Other expenses (income), net:
Accretion of provision for site reclamation and closure				39			43			111			109
Amortization of flow-through share premium		7		(678	)		(1,609	)		(1,407	)		(2,222	)
Foreign exchange loss				2			2			11			8
Interest expense				6			13			24			50
Interest income				(75	)		(162	)		(240	)		(472	)
Net gain on disposition of mineral interests				-			(468	)		-			(468	)
Net loss from associates		6		1,668			3,200			3,624			5,334
Realized gain on disposal of investments		6		-			-			(538	)		-
Net loss (gain) on marketable securities		3		421			518			(191	)		(309	)
Other income		9		-			-			(566	)		-
				1,383			1,537			828			2,030
Loss before taxes				4,647			6,650			9,075			12,588
Income tax (recovery) expense				(194	)		-			(194	)		18
Net loss				4,453			6,650			8,881			12,606

Other comprehensive loss, net of tax

Unrealized currency loss (gain) on translation of foreign operations				-			(1	)		2			3

Total comprehensive loss			$	4,453		$	6,649		$	8,883		$	12,609

Loss per share:
Basic loss per share		14	$	0.03		$	0.05		$	0.06		$	0.09
Diluted loss per share		14	$	0.03		$	0.05		$	0.06		$	0.09

Fury Gold Mines Limited
Condensed Interim Consolidated Statements of Equity
(Expressed in thousands of Canadian dollars, except share amounts – Unaudited)
	Number of common shares		Share capital		Share option and warrant reserve		Accumulated other comprehensive loss			Deficit			Total
Balance at December 31, 2022		139,470,950	$	306,328	$	20,309	$	(3	)	$	(131,841	)	$	194,793
Total comprehensive loss		-		-		-		(3	)		(12,606	)		(12,609	)
Shares issued pursuant to offering, net of share issue costs and flow-through premium liability		6,076,500		3,949		-		-			-			3,949
Share-based compensation		-		-		1,117		-			-			1,117
Balance at September 30, 2023		145,547,450	$	310,277	$	21,426	$	(6	)	$	(144,447	)	$	187,250

Balance at December 31, 2023		145,744,795	$	310,277	$	21,660	$	(9	)	$	(149,054	)	$	182,874
Total comprehensive loss		-		-		-		(2	)		(8,881	)		(8,883	)
Shares issued pursuant to offering, net of share issue costs and flow-through premium liability (note 10)		5,320,000		2,537		-		-			-			2,537
Share-based compensation (note 11(a))		441,278		-		995		-			-			995
Balance at September 30, 2024		151,506,073	$	312,814	$	22,655	$	(11	)	$	(157,935	)	$	177,523

Fury Gold Mines Limited
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in thousands of Canadian dollars – Unaudited)
			Three months ended September 30						Nine months ended September 30
	Note		2024			2023			2024			2023
Operating activities:
Net loss			$	(4,453	)	$	(6,650	)	$	(8,881	)	$	(12,606	)
Adjusted for:
Interest income				(75	)		(162	)		(240	)		(472	)
Items not involving cash:
Net gain on disposition of mineral interests				-			(468	)		-			(468	)
Realized gain on disposal of investments		6		-			-			(538	)		-
Net loss (gain) on marketable securities		3		421			518			(191	)		(309	)
Depreciation				69			85			227			258
Net loss from associates		6		1,668			3,200			3,624			5,334
Amortization of flow-through share premium		7		(678	)		(1,609	)		(1,407	)		(2,222	)
Accretion of provision for site reclamation and closure				39			43			111			109
Share-based compensation		11		179			191			831			1,117
Interest expense				6			13			24			50
Changes in non-cash working capital		13		(524	)		558			(67	)		488
Cash used in operating activities				(3,348	)		(4,281	)		(6,507	)		(8,721	)
Investing activities:
Interest received				75			162			240			472
Acquisition of mineral interests, inclusive of transaction fees				-			-			(3,030	)		50
Proceeds from disposal of marketable securities				237			310			481			310
Marketable securities additions		3		-			-			(1,300	)		-
Other investments additions		4		(2,063	)		-			(2,063	)		-
Equipment additions				(35	)		-			(35	)		-
Proceeds from disposition of investment in associate, net of transaction costs		6a		-			-			3,820			-
Cash provided by (used in) investing activities				(1,786	)		472			(1,887	)		832
Financing activities:
Lease payments				(48	)		(46	)		(142	)		(167	)
Proceeds from issuance of flow-through shares, net of issuance costs		10		(4	)		(88	)		4,560			7,838
Cash (used in) provided by financing activities				(52	)		(134	)		4,418			7,671
Effect of foreign exchange on cash				-			1			(2	)		(3	)
Decrease in cash				(5,186	)		(3,942	)		(3,977	)		(221	)
Cash, beginning of the period				8,522			14,030			7,313			10,309
Cash, end of the period			$	3,336		$	10,088		$	3,336		$	10,088

Subsidiary	Place of incorporation	Functional currency
Eastmain Mines Inc. (“Eastmain Mines”) ^(a)	Canada	CAD
Eastmain Resources Inc. (“Eastmain”)	ON, Canada	CAD
Fury Gold USA Limited (“Fury Gold USA”) ^(b)	Delaware, U.S.A.	USD
North Country Gold Corp. (“North Country”)	BC, Canada	CAD

	Total
Balance at December 31, 2022	$	582
Additions		1,619
Proceeds from disposal of marketable securities		(381	)
Realized gain on disposition		293
Unrealized net loss		(947	)
Balance at December 31, 2023	$	1,166
Additions		1,300
Proceeds from disposal of marketable securities		(481	)
Realized loss on disposition		(60	)
Unrealized net gain		251
Balance at September 30, 2024	$	2,176

Quebec				Nunavut		Total
Balance at December 31, 2022	$	125,656		$	19,534	$	145,190
Option payment received		(880	)		-		(880	)
Disposition		(1,746	)		-		(1,746	)
Change in estimate of provision for site reclamation and closure		(52	)		127		75
Balance at December 31, 2023	$	122,978		$	19,661	$	142,639
Additions ⁽¹⁾		3,030			-		3,030
Change in estimate of provision for site reclamation and closure		27			49		76
Balance at September 30, 2024	$	126,035		$	19,710	$	145,745

	(i)	On February 25, 2022, the Company completed the sale of Homestake Resources Corporation to Dolly Varden for cash proceeds of $5,000 and 76,504,590 common shares of Dolly Varden. The Company’s resulting interest in Dolly Varden represented approximately 35.3% of the issued and outstanding common shares of Dolly Varden on February 25, 2022, which has been accounted for using the equity method. The Company recognized a gain of $48,390, net of transaction costs of $589, on the date of disposition. On October 13, 2022, the Company completed the sale of 17,000,000 common shares of Dolly Varden for total gross proceeds of $6,800. On March 13, 2024, the Company sold a further 5,450,000 common shares of Dolly Varden for gross proceeds of $4,006 to decrease its holdings to 20.02% as at March 13, 2024, recognizing a gain of $538 and incurring $185 in costs to complete the transaction.

	(ii)	On April 1, 2022, the Company purchased a 25% share interest in UMS, a private shared-services provider for nominal consideration. The Company funded, in addition to its nominal investment in UMS, a cash deposit of $150 which is held by UMS for the purposes of general working capital, and which will be returned to the Company upon termination of the UMS Canada arrangement, net of any residual unfulfilled obligations. UMS is the private company through which its shareholders, including Fury Gold, share geological, financial, and transactional advisory services as well as administrative services on a full, cost recovery basis.

	Dolly Varden			UMS			Total
Carrying amount at December 31, 2022	$	42,303		$	127		$	42,430
Company’s share of net loss of associates		(6,177	)		(5	)		(6,182	)
Carrying amount at December 31, 2023	$	36,126		$	122		$	36,248
Company’s share of net loss of associates		(3,592	)		(32	)		(3,624	)
Disposition⁽¹⁾		(3,283	)		-			(3,283	)
Carrying amount at September 30, 2024	$	29,251		$	90		$	29,341

Three months ended September 30, 2024	Dolly Varden			UMS			Total
Cost recoveries	$	-		$	(1,016	)	$	(1,016	)
Exploration and evaluation		9,269			481			9,750
Marketing		561			20			581
Share-based compensation		555			-			555
Administrative and other		(1,399	)		557			(842	)
Net loss of associate, 100%		8,986			42			9,028
Company’s share of net loss of associates	$	1,657		$	11		$	1,668

Three months ended September 30, 2023	Dolly Varden			UMS			Total
Cost recoveries	$	-		$	(1,056	)	$	(1,056	)
Exploration and evaluation		14,814			362			15,176
Marketing		352			110			462
Share-based compensation		469			-			469
Administrative and other		(1,948	)		592			(1,356	)
Net loss of associate, 100%		13,687			8			13,695
Company’s share of net loss of associates	$	3,198		$	2		$	3,200

Nine months ended September 30, 2024	Dolly Varden			UMS			Total
Cost recoveries	$	-		$	(2,797	)	$	(2,797	)
Exploration and evaluation		16,502			1,014			17,516
Marketing		1,245			131			1,376
Share-based compensation		2,049			-			2,049
Administrative and other		(660	)		1,780			1,120
Net loss of associate, 100%		19,136			128			19,264
Company’s share of net loss of associates	$	3,618		$	32		$	3,650

Nine months ended September 30, 2023	Dolly Varden			UMS			Total
Cost recoveries	$	-		$	(4,277	)	$	(4,277	)
Exploration and evaluation		22,111			1,529			23,640
Marketing		1,100			369			1,469
Share-based compensation		1,373			-			1,373
Administrative and other		(1,851	)		2,457			606
Net loss of associate, 100%		22,733			78			22,811
Company’s share of net loss of associates	$	5,314		$	20		$	5,334

	Dolly Varden			UMS
Current assets	$	39,273		$	786
Non-current assets		127,420			2,218
Current liabilities		(8,093	)		(1,340	)
Non-current liabilities		-			(1,303	)
Net assets, 100%		158,600			361
Company’s equity share of net assets of associate	$	29,251		$	90

Quebec	Flow-through funding and expenditures			Flow-through Premium liability
Balance at December 31, 2022	$	-		$	-
Flow-through funds raised ⁽¹⁾		8,750			3,889
Flow-through eligible expenditures		(7,527	)		(3,345	)
Balance at December 31, 2023	$	1,223		$	544
Flow-through eligible expenditures		(1,223	)		(544	)
Flow-through funds raised ⁽²⁾		5,001			2,022
Flow-through eligible expenditures		(2,135	)		(863	)
Balance at September 30, 2024	$	2,866		$	1,159

	Number of common shares		Impact on share capital
Flow-through shares issued at $0.94 per share		5,320,000	$	5,001
Cash share issue costs		-		(442	)
Proceeds net of share issue costs		5,320,000		4,559
Less: flow-through share premium liability (note 7)		-		(2,022	)
Total allocated to share capital		5,320,000	$	2,537

	Number of common shares		Impact on share capital
Flow-through shares issued at $1.44 per share		6,076,500	$	8,750
Cash share issue costs		-		(912	)
Proceeds net of share issue costs		6,076,500		7,838
Less: flow-through share premium liability (note 7)		-		(3,889	)
Total allocated to share capital		6,076,500	$	3,949

	Number of share options			Weighted average exercise price ($/option)
Outstanding, December 31, 2022		8,880,324		$	1.44
Granted		3,134,800			0.80
Expired		(1,672,087	)		1.58
Forfeited		(391,435	)		0.95
Outstanding, December 31, 2023		9,951,602		$	1.23
Granted		245,000			0.56
Expired		(1,112,384	)		1.63
Forfeited		(320,612	)		1.64
Outstanding, September 30, 2024		8,763,606		$	1.15

	Options outstanding						Options exercisable
Exercise price ($/option)	Number of shares		Weighted average exercise price ($/option)		Weighted average remaining life (years)		Number of shares		Weighted average exercise price ($/option)		Weighted average remaining life (years)
$0.53 – $1.00		4,050,506		0.82		3.25		3,715,881		0.83		3.17
$1.00 – $1.85		3,083,100		1.10		2.51		2,858,100		1.11		2.49
$2.05		1,630,000		2.05		1.31		1,520,000		2.05		1.31
		8,763,606		1.15		2.63		8,093,981		1.16		2.58

	Number of RSU’s			Weighted average vesting price ($/ share)
Outstanding, December 31, 2022		-		$	-
Granted		197,345			0.60
Settled		(197,345	)		(0.60	)
Outstanding, December 31, 2023		-		$	-
Granted		1,827,245			0.72
Forfeited		(189,687	)		0.79
Settled		(441,278	)		0.60
Outstanding, September 30, 2024		1,196,280		$	0.79

Expiry date	Warrants outstanding		Exercise price ($/share)
October 6, 2024		5,085,670	$	1.20
October 12, 2024		2,375,780		1.20
Total		7,461,450	$	1.20

	At September 30, 2024						At December 31, 2023
	Amortized Cost		FVTPL		Total		Amortized Cost		FVTPL		Total
Cash	$	3,336	$	-	$	3,336	$	7,313	$	-	$	7,313
Marketable securities		-		2,176		2,176		-		1,166		1,166
Other investments		-		2,063		2,063		-		-		-
Deposits		94		-		94		100		-		100
Accounts receivable		238		-		238		374		-		374
Total financial assets		3,668		4,239		7,907		7,787		1,166		8,953
Accounts payable and accrued liabilities		623		-		623		1,034		-		1,034
Total financial liabilities	$	623	$	-	$	623	$	1,034	$	-	$	1,034

	Within 1 year		2 to 3 years		Over 3 years		At September 30 2024		At December 31 2023
Accounts payable and accrued liabilities	$	623	$	-	$	-	$	623	$	1,034
Quebec flow-through expenditure requirements		2,866		-		-		2,866		1,223
Undiscounted lease payments		111		-		-		111		253
Total	$	3,600	$	-	$	-	$	3,600	$	2,510

	At September 30 2024			At December 31 2023
Financial assets
US$ bank accounts	$	5		$	1
Financial liabilities

Accounts payable		(7	)		(7	)
	$	(2	)	$	(6	)

	·	On October 4, 2024, the Company sold 3,000,000 shares of Dolly Varden for gross proceeds of $3,221 and, as a result, reduced its holdings to 16.25%.

	·	All 7,461,450 warrants that was outstanding at September 30, 2024 expired on October 6 and 12, 2024.

SECTION 1: FORWARD-LOOKING STATEMENTS AND RISK FACTORS		2
SECTION 2: BUSINESS OVERVIEW		4
SECTION 3: Q3 2024 HIGHLIGHTS AND SUBSEQUENT EVENTS		5
SECTION 4: PROJECTS OVERVIEW		6
SECTION 5: REVIEW OF QUARTERLY FINANCIAL INFORMATION		10
SECTION 6: FINANCIAL POSITION, LIQUIDITY, AND CAPITAL RESOURCES		12
SECTION 7: FINANCIAL RISK SUMMARY		16
SECTION 8: RELATED PARTY TRANSACTIONS AND BALANCES		17
SECTION 9: CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS		18
SECTION 10: CONTROLS AND PROCEDURES		19

	■	On June 27, 2024, the Company announced the voting results from its Annual General Meeting (“Meeting”) of Shareholders held on June 26, 2024. The Company confirmed that each director nominee listed in the Company’s management information circular (“Circular”) dated May 14, 2024 in connection with the Meeting, were re-elected as directors of the Company and Deloitte LLP, was re-appointed as the Company’s auditor.

	■	On June 13, 2024, the Company announced the closing of $5 Million financing announced on May 23, 2024. The Company issued 5,320,000 common shares of the Company that qualify as “flow-through shares” as defined under subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Québec) (the “FT Shares”) at a price of C$0.94 per FT Share (the “Issue Price”) for total gross proceeds to the Company of C$5,000,800 (the “June 2024 Offering”).

	o	Three Bluffs Shear, where drilling in 2021 intercepted 13.93 g/t Au over 10 metres (m) (see news release dated December 1, 2021);

	o	Raven Shear where 7 rock samples have averaged 16.12 g/t gold; and

	o	Burro West where a 300 by 300 m discrete >90th percentile gold in till anomaly has been defined with a peak value of 50 ppb gold.

	■	On October 7, 2024, the Company announced the discovery of high-grade lithium outcrop on the western claim block of its 100% owned Eleonore South project in the Eeyou Istchee Territory in the James Bay region of Quebec. The outcrop sampling program targeted the historical Fliszar showing lepidolite bearing pegmatite as well as new rock exposures over an area of approximately 1000 x 500 metres (m) resulting in the collection of 34 samples. Seven samples returned high-grade values above 1.75% lithium oxide (Li2O) with a peak value of 4.67% Li2O. The Company’s focus remains on the gold prospectivity of the Eleonore South project. However, the announced lithium results provide additional exploration targets as the overall project is advanced.

	■	On September 9, 2024, the Company announced results from the diamond drilling program at the greenfield Serendipity Prospect on its wholly owned Eau Claire project in the Eeyou Istchee Territory in the James Bay region of Quebec. The Serendipity Prospect lies within the same prospective geological setting as the Company’s Percival Deposit. In total 3,871 metres (m) were drilled in 10 holes across five distinct targets at Serendipity. Drill hole 24SD-009 targeted a biogeochemical anomaly overlying the easterly extension of the structure controlling the mineralization at Serendipity and intercepted 12.16 g/t gold over 3.0 m (Figures 1 and 2, Table 1). Drill hole 24SD-002 targeted a biogeochemical anomaly at the hinge of an interpreted fold within volcanic stratigraphy and intercepted 5.27 g/t gold over 1.0 m. The two noted intercepts above are separated by over 2 kilometres (km) indicating the potential for a large mineralizing system at Serendipity. The Company is in the process of planning follow-up drilling at Serendipity for 2025.

	■	On June 28, 2024, the Company announced the filing of a NI43-101 Technical Report for the Increased Mineral Resource Estimate for the high-grade Eau Claire deposit as well as a Maiden Mineral Resource Estimate for the Percival deposit located in the Eeyou Istchee Territory of the James Bay region of Quebec. The Eau Claire project now contains a combined mineral resource of 1.16Moz gold (Au) at a grade of 5.64 g/t Au in the Measured and Indicated category as well as an additional 723koz gold at a grade of 4.13 g/t Au in the Inferred Category. Gold mineralization remains open for expansion in all directions at both the Eau Claire and Percival deposits through additional drilling.

	■	the provision of jobs and training programs
	■	contracting opportunities
	■	capacity funding for Indigenous engagement
	■	sponsorship of community events
	■	supporting professional development opportunities, building cultural and community intelligence capacity.

Three months ended:	Interest income		Net loss		Comprehensive loss		Loss per share ($/share)
September 30, 2024	$	75	$	4,453	$	4,453	$	0.03
June 30, 2024		82		3,496		3,497		0.02
March 31, 2024		82		934		935		0.01
December 31, 2023		119		4,609		4,612		0.03
September 30, 2023		162		6,650		6,649		0.05
June 30, 2023		188		3,293		3,296		0.02
March 31, 2023		121		2,661		2,662		0.02
December 31, 2022		112		2,871		2,872		0.03

■	Exploration and evaluation costs decreased to $2,318 for the three months ended September 30, 2024 compared to $3,839 for the three months ended September 30, 2023. The decrease resulted from a shorter drill program than in 2023, finishing the 2024 program in mid-August compared to the 2023 program that was still ongoing at the end of September 2023.

■	Fees, salaries, and other employment benefits decreased to $412 for the three months ended September 30, 2024 compared to $445 for the three months ended September 30, 2023. The decrease in costs resulted from a lower headcount and lower overall average salaries compared to 2023;

■	Legal and professional fees decreased to $138 for the three months ended September 30, 2024 compared to $365 for the three months ended September 30, 2023. The higher costs in 2023 were due to the various preparation and professional fees associated with the base shelf prospectus which wasn’t necessary to repeat in 2024;

■	Marketing and investor relations costs decreased to $138 for the three months ended September 30, 2024 compared to $168 for the three months ended September 30, 2023. The decrease in costs was due to a reduction in consulting and advertising activities during the third quarter of 2024 as compared to the comparative period of 2023.

■	Net loss from associates of $1,668 primarily comprising the Company’s share of net losses of Dolly Varden, compared to $3,200 for the three months ended September 30, 2023; and

■	Amortization of flow-through share premium decreased to $678 for the three months ended September 30, 2024 as a result of the extinguishment of the flow-through liability at the end of April 2024, and only raising further flow-through funds during June 2024 with a smaller program running in 2024, compared to $1,609 for the three months ended September 30, 2023.

■	The other income of $566 in 2024, compared to $nil in 2023 due to the sale of fuel as it was a one off transaction;

■	Net loss from associates of $3,624 comprising the Company’s share of net losses of Dolly Varden and UMS compared to $5,334 for the nine months ended September 30, 2023. The decrease are due to Dolly Varden having lower exploration activities over the comparative periods, combined with a lower percentage holdings in Dolly Varden compared to 2023; and

■	Amortization of flow-through share premium of $1,407 for the nine months ended September 30, 2024 as compared to $2,222 for the nine months ended September 30, 2023, reflecting the smaller program at Eau Claire and Elenor South compared to 2023.