Fury Gold Mines Ltd 6-K, filed Aug 15, 2023

Fury Gold Mines Ltd (FURY)

6-K 2023-08-15 For: 2023-08-15

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Added on April 10, 2026

About this 6-K

Fury Gold Mines Ltd filed this 6-K on August 15, 2023.

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Exhibit 99.1		Condensed Interim Consolidated Financial Statements

Exhibit 99.2		Management’s Discussion And Analysis

Exhibit 99.3		CEO certification of interim filings

Exhibit 99.4		CFO certification of interim filings

	Fury Gold Mines Limited

Date: August 15, 2023	By:	/s/ Lynsey Sherry
		Lynsey Sherry
		Chief Financial Officer

Fury Gold Mines Limited
Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of Canadian dollars – Unaudited)
			At June 30			At December 31
	Note		2023			2022
Assets
Current assets:
Cash			$	14,030		$	10,309
Marketable securities		3		2,034			582
Accounts receivable				332			369
Prepaid expenses and deposits				517			602
				16,913			11,862
Non-current assets:
Restricted cash				144			144
Prepaid expenses and deposits				100			42
Property and equipment				759			931
Mineral interests		4		144,551			145,190
Investments in associates		5		40,296			42,430
				185,850			188,737
Total assets			$	202,763		$	200,599

Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities			$	1,020		$	1,148
Lease liability				146			160
Flow-through share premium liability		6		3,276			-
				4,442			1,308
Non-current liabilities:
Lease liability				150			227
Provision for site reclamation and closure				4,374			4,271
Total liabilities			$	8,966		$	5,806

Equity:
Share capital		8	$	310,365		$	306,328
Share option and warrant reserve		9		21,235			20,309
Accumulated other comprehensive loss				(7	)		(3	)
Deficit				(137,796	)		(131,841	)
Total equity			$	193,797		$	194,793
Total liabilities and equity			$	202,763		$	200,599

“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 June 30						Six months ended June 30
	Note		2023			2022			2023			2022
Operating expenses:
Exploration and evaluation		7	$	1,826		$	2,814		$	2,688		$	4,086
Fees, salaries, and other employee benefits				517			984			1,397			1,742
Insurance				170			193			338			386
Legal and Professional				152			378			255			614
Marketing and investor relations				218			338			388			556
Office and administration				119			76			200			212
Regulatory and compliance				113			87			178			156
				3,115			4,870			5,444			7,752

Other expense (income), net:
Accretion of provision for site reclamation and closure				32			23			66			40
Amortization of flow-through share premium		6		(613	)		(1,011	)		(613	)		(1,414	)
Foreign exchange loss				1			2			5			4
Interest expense				15			48			37			69
Interest income				(188	)		(45	)		(309	)		(49	)
Net gain on disposition of mineral interests				-			-			-			(48,390	)
Net loss from associates		5		1,552			1,441			2,134			1,890
Unrealized net (gain) loss on marketable securities		3		(639	)		271			(827	)		226
				160			729			493			(47,624	)
Loss (earnings) before taxes				3,275			5,599			5,937			(39,872	)
Income tax expense (recovery)				18			(22	)		18			(187	)
Net loss (earnings)				3,293			5,577			5,955			(40,059	)

Other comprehensive loss, net of tax

Unrealized currency loss on translation of foreign operations				3			-			4			-

Total comprehensive loss (income)			$	3,296		$	5,577		$	5,959		$	(40,059	)

Loss (earnings) per share:
Basic loss (earnings) per share		12	$	0.02		$	0.04		$	0.04		$	(0.31	)
Diluted loss (earnings) per share		12	$	0.02		$	0.04		$	0.04		$	(0.29	)

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

Associates and joint arrangement	Ownership interest	Location	Classification and accounting method
Dolly Varden	23.5%	BC, Canada	Associate; equity method
UMS	25.0%	BC, Canada	Associate; equity method
ESJV	50.022%	Quebec, Canada	Joint operation


	Total
Balance at December 31, 2021	$	605
Additions		110
Unrealized net loss		(135	)
Balance at December 31, 2022	$	582
Additions		625
Unrealized net gain		827
Balance at June 30, 2023	$	2,034


	Quebec			Nunavut		British Columbia			Total
Balance at December 31, 2021	$	125,094		$	19,139	$	16,460		$	160,693
Sale of Homestake Resources Corporation		-			-		(16,460	)		(16,460	)
Acquisition of additional ownership interest in ESJV		1,281			-		-			1,281
Option payment received		(310	)		-		-			(310	)
Change in estimate of provision for site reclamation and closure		(409	)		395		-			(14	)
Balance at December 31, 2022	$	125,656		$	19,534	$	-		$	145,190
Option payment received		(675	)		-		-			(675	)
Change in estimate of provision for site reclamation and closure		19			17		-			36
Balance at June 30, 2023	$	125,000		$	19,551	$	-		$	144,551

(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.

(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. Certain of the Company’s key personnel are directly employed by UMS and seconded to the Company.


	Dolly Varden			UMS			Total
Carrying amount at December 31, 2021	$	-		$	-		$	-
Acquisition of equity investment		60,439			151			60,590
Disposal		(12,280	)		-			(12,280	)
Company’s share of net loss of associates		(5,856	)		(24	)		(5,880	)
Carrying amount at December 31, 2022	$	42,303		$	127		$	42,430
Company’s share of net loss of associates		(2,116	)		(18	)		(2,134	)
Carrying amount at June 30, 2023	$	40,187		$	109		$	40,296


Three months ended June 30, 2023	Dolly Varden			UMS
Cost recoveries	$	-		$	(1,665	)
Exploration and evaluation		6,498			676
Marketing		339			-
Share-based compensation		485			-
Administrative and other		(714	)		1,022
Net loss of associate, 100%		6,608			33
Company’s share of net loss of associates	$	1,543		$	8


Six months ended June 30, 2023	Dolly Varden		UMS
Cost recoveries	$	-	$	(3,220	)
Exploration and evaluation		7,297		1,167
Marketing		747		-
Share-based compensation		904		-
Administrative and other		97		2,124
Net loss of associate, 100%		9,046		71
Company’s share of net loss of associates	$	2,116	$	18


	Dolly Varden			UMS
Current assets	$	23,783		$	782
Non-current assets		154,750			2,609
Current liabilities		(6,426	)		(1,546	)
Non-current liabilities		-			(1,409	)
Net assets, 100%		172,107			436
Company’s equity share of net assets of associate	$	40,187		$	109


Quebec	Flow-through funding and expenditures			Flow-through Premium liability
Balance at December 31, 2021	$	7,290		$	3,124
Flow-through eligible expenditures		(7,290	)		(3,124	)
Balance at December 31, 2022	$	-		$	-
Flow-through share issuance (note 8)		8,750			3,889
Flow-through eligible expenditures		(1,380	)		(613	)
Balance at June 30, 2023	$	7,370		$	3,276


	Quebec		Nunavut		Total
Assaying	$	267	$	10	$	277
Exploration drilling		699		-		699
Camp cost, equipment, and field supplies		319		39		358
Geological consulting services		30		2		32
Geophysical analysis		7		-		7
Permitting, environmental and community costs		63		60		123
Expediting and mobilization		4		-		4
Salaries and wages		768		20		788
Fuel and consumables		187		-		187
Aircraft and travel		144		-		144
Share-based compensation		190		5		195
Three months ended June 30, 2022	$	2,678	$	136	$	2,814


	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		-		(824	)
Proceeds net of share issue costs		6,076,500		7,926
Less: flow-through share premium liability (note 6)		-		(3,889	)
Total allocated to share capital		6,076,500	$	4,037


	Number of share options			Weighted average exercise price ($/option)
Outstanding, December 31, 2021		6,751,997		$	2.00
Granted		3,430,000			1.00
Expired		(608,237	)		4.65
Forfeited		(693,436	)		1.77
Outstanding, December 31, 2022		8,880,324		$	1.44
Granted		2,978,800			0.92
Expired		(952,796	)		1.63
Forfeited		(386,522	)		0.89
Outstanding, June 30, 2023		10,519,806		$	1.26


	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)
$0.56 – $1.00		7,117,284		0.92		3.93		4,658,690		0.95		3.73
$1.00 – $1.95		1,011,688		1.80		1.59		1,011,688		1.80		1.59
$2.05 – $3.26		2,390,834		2.05		2.30		2,390,834		2.05		2.30
		10,519,806		1.26		3.34		8,061,212		1.38		3.04


	Warrants outstanding			Weighted average exercise price ($/share)
Outstanding at December 31, 2021		8,211,453		$	1.27
Expired		(750,003	)		1.95
Outstanding at December 31, 2022 and June 30, 2023		7,461,450		$	1.20


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 June 30, 2023						At December 31, 2022
	Amortized Cost		FVTPL		Total		Amortized Cost		FVTPL		Total
Cash	$	14,030	$	-	$	14,030	$	10,309	$	-	$	10,309
Marketable securities		-		2,034		2,034		-		582		582
Deposits		84		-		84		25		-		25
Accounts receivable		332		-		332		369		-		369
Total financial assets		14,446		2,034		16,480		10,703		582		11,285
Accounts payable and accrued liabilities		1,020		-		1,020		1,148		-		1,148
Undiscounted lease payments		188		159		346		468				468
Total financial liabilities	$	1,208	$	159	$	1,366	$	1,616	$	-	$	1,616


	Within 1 year		2 to 3 years		Over 3 years		At June 30 2023		At December 31 2022
Accounts payable and accrued liabilities	$	1,020	$	-	$	-	$	1,020	$	1,148
Quebec flow-through expenditure requirements		-		7,370		-		7,370		-
Undiscounted lease payments		188		159		-		346		468
Total	$	1,208	$	7,529	$	-	$	8,736	$	1,616


	At June 30 2023			At December 31 2022
Financial assets
US$ bank accounts	$	27		$	1
Financial liabilities
Accounts payable		(6	)		(61	)
	$	21		$	(60	)

SECTION 1: FORWARD-LOOKING STATEMENTS AND RISK FACTORS	2

SECTION 2: BUSINESS OVERVIEW	4

SECTION 3: Q2 2023 HIGHLIGHTS AND SUBSEQUENT EVENTS	5

SECTION 4: PROJECTS OVERVIEW	6

SECTION 5: REVIEW OF QUARTERLY FINANCIAL INFORMATION	9

SECTION 6: FINANCIAL POSITION, LIQUIDITY, AND CAPITAL RESOURCES	11

SECTION 7: FINANCIAL RISK SUMMARY	14

SECTION 8: RELATED PARTY TRANSACTIONS AND BALANCES	15

SECTION 9: CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS	16

SECTION 10: CONTROLS AND PROCEDURES	17

	·	On June 30, 2023, the Company announced the voting results from its Annual General Meeting (“Meeting”) of Shareholders held on June 29, 2023. The Company confirmed that each director nominee listed in the Company’s management information circular (“Circular”) dated May 18, 2023 in connection with the Meeting and as filed on SEDAR on May 23, 2023, were re-elected as directors of the Company and Deloitte LLP, was re-appointed as the Company’s auditor. The adoption of a new long-term equity based management incentive plan was also approved the detailed terms of which are fully described in the information circular filed on SEDAR in connection with the Meeting.

	·	On May 31, 2023, the Company announced that Dr Lynsey Sherry, Chief Financial Officer (“CFO”), had given notice that effective June 23, 2023, she would be pursuing other professional opportunities; Mr. Phil Van Staden, previously Fury’s Corporate Controller, was appointed Interim CFO effective that date.

	·	On May 16, 2023, the Company announced that Mr. Brian Christie had been appointed as Board Chair and that Mr. Jeffrey Mason will continue to serve as independent Director. The Company also announced that Mr. Michael Henrichsen, Chief Geological Officer, (CGO), had retired from his role and will remain a consultant to Fury. There are no plans to continue with the office of the CGO at this time and the Senior VP Exploration will assume any responsibilities related to the CGO role.

	·	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 for staff, executives and directors.

Three months ended:	Interest income		Net loss (earnings)			Comprehensive loss (income)			Loss (earnings) per share ($/share)
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
September 30, 2022		67		12,280			12,282			0.09
June 30, 2022		45		5,577			5,577			0.04
March 31, 2022		4		(45,636	)		(45,636	)		(0.36	)
December 31, 2021		3		298			298			0.00
September 30, 2021		4		7,507			7,507			0.06

·	Exploration and evaluation costs decreased to $1,826 for the three months ended June 30, 2023 compared to $2,814 for the three months ended June 30, 2022. The decrease resulted from exploration activity being limited to by the fire evacuation order that shutdown all activity at site for most of June 2023, as compared to 2022 when there was a geophysical survey undertaken as well as 2022 drill program planning and completion of the 2021 drill program data analysis.

·	Fees, salaries, and other employment benefits decreased to $517 for the three months ended June 30, 2023 compared to $984 for the three months ended June 30, 2022. The decrease in costs resulted from higher share-based compensation expense which was $433 for the three months ended June 30, 2022 as compared to only $149 for the comparative period as well as a lower headcount;

·	Legal and professional fees decreased to $152 for the three months ended June 30, 2023 compared to $378 for the three months ended June 30, 2022. The higher costs in the comparative period were primarily due to preparation costs incurred in respect of a cancelled public financing in the first quarter of 2022 in favour of financing via a non-brokered private placement; and

·	Marketing and investor relations costs decreased to $218 for the three months ended June 30, 2023 compared to $338 for the three months ended June 30, 2022. The decrease in costs was due to a reduction in consulting and advertising activities during the second quarter of 2023 as compared to the comparative period of 2022.

·	Net loss from associates of $1,552 primarily comprising the Company’s share of net losses of Dolly Varden, compared to $1,441 for the three months ended June 30, 2022; and

·	Amortization of flow-through share premium decreased to $613 for the three months ended June 30, 2023 as a result of the shutdown caused by the fire evacuation order in June 2023, compared to $1,011 for the three months ended June 30, 2022.

	·	A net gain of $nil, compared to a net gain of $48,390 recognized on the sale of Homestake Resources to Dolly Varden for the six months ended June 30, 2022. The gain recognized was comprised of cash proceeds of $5,000 and the fair value of the 76,504,590 common shares of Dolly Varden, calculated based on the market value of the common shares on date of closing, net of transaction costs;

	·	Net loss from associates of $2,134 comprising the Company’s share of net losses of Dolly Varden and UMS compared to $1,890 for the six months ended June 30, 2022; and

	·	Amortization of flow-through share premium of $613 for the six months ended June 30, 2023 as compared to $1,414 for the six months ended June 30, 2022, reflecting the lower exploration activity at Eau Claire in addition to new flow-through shares only being issued at the end of the first quarter of 2023.

	June 30 2023		December 31 2022
Cash	$	14,030	$	10,309
Restricted cash		144		144
Marketable securities		2,034		582
Other assets		1,708		1,944
Mineral property interests		144,551		145,190
Investments in associates		40,296		42,430
Current liabilities		4,442		1,308
Non-current liabilities		4,524		4,498
Working capital surplus ⁽¹⁾		12,471		10,554
Accumulated deficit		137,796		131,841

Cash flows from continuing operations:	Three months ended June 30						Six months ended June 30
	2023			2022			2023			2022
Cash (used in) operating activities		(2,637	)		(3,393	)		(4,438	)		(6,091	)
Cash (used in) provided by investing activities		188			(45	)		359			4,438
Cash (used in) provided by financing activities		(59	)		10,801			7,804			10,755

	·	During the three months ended June 30, 2023, the Company used cash of $2,637 in operating activities compared to $3,393 in 2022. The cash outflow for the current period was lower primarily due to the lower exploration activity and lower legal and professional expense.

	·	During the six months ended June 30, 2023, the Company used cash of $4,438 in operating activities compared to $6,091 during the six months ended June 30, 2022. The cash outflow was lower in 2023 due to the temporary pause on drilling in June 2023, and a reduction in corporate costs throughout with a lower headcount and lower spend on marketing and professional fees.

	·	For the three months ended June 30, 2023, the Company used cash through financing activities of $59, primarily due to lease payments made. For the three months ended June 30, 2022, cash provided by financing activities of $10,801 primarily represented the net proceeds received in respect of the April 2022 financing

	·	For the six months ended June 30, 2023, cash provided by financing activities of $7,804, primarily represented the net proceeds received in respect of a flow through common share (section 6.4) offering which was completed in March 2023. For the six months ended June 30, 2022, cash provided by financing activities of $10,755, primarily represented the net proceeds received in respect of the April 2022 financing.