Fury Gold Mines Ltd 6-K, filed Nov 16, 2020

Fury Gold Mines Ltd (FURY)

6-K 2020-11-16 For: 2020-11-13

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Added on April 10, 2026

About this 6-K

Fury Gold Mines Ltd filed this 6-K on November 16, 2020.

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	Fury Gold Mines Limited

Date: November 13, 2020	By:	/s/ Lynsey Sherry
		Lynsey Sherry
		Chief Financial Officer

Note 1 : Nature of operations		7
Note 2 : Basis of presentation		8
a)	Statement of compliance	8
b)	Basis of preparation and consolidation	9
c)	Critical accounting judgments and estimates	9
Note 3 : Mineral property interests		10
a)	Nunavut exploration projects	10
b)	Homestake Ridge	10
c)	Peruvian exploration projects	10
d)	Costs capitalized as mineral property interests	13
Note 4 : Flow-through share premium liability		13
Note 5 : Bridge loan		13
Note 6 : Provision for site reclamation and closure		15
Note 7 : Exploration and evaluation costs		16
Note 8 : Share capital		17
a)	Authorized	17
b)	Share issuances	18
c)	Share consolidation	18
Note 9 : Share option and warrant reserves		19
a)	Share-based payments	19
b)	Share purchase warrants	20
Note 10 : Related party balances and transactions		20
a)	Related parties	21
b)	Compensation of key management personnel	21
Note 11 : Supplemental cash flow information		22
Note 12 : Segmented information		22
Note 13 : Loss per share		22
Note 14 : Financial instruments		23
Note 15 : Subsequent events		24

	As at September 30,	As at December 31,
	2020	2019
Assets
Current assets:
Cash	$7,645	$660
Marketable securities	385	346
Amounts receivable	779	55
Prepaid expenses and deposits	3,068	651
	11,877	1,712

Non-current assets:
Restricted cash	115	115
Prepaid expenses and deposits	122	149
Mineral property interests (Note 3)	44,236	39,714
Equipment	1,087	1,272
	45,560	41,250
Total assets	$57,437	$42,962


Liabilities and Equity
Liabilities
Current liabilities:
Accounts payable and accrued liabilities	$2,173	$1,067
Flow-through share premium liability (Note 4)	–	7
Bridge loan (Note 5)	–	2,931
	2,173	4,005

Non-current liabilities:
Provision for site reclamation and closure (Note 6)	2,298	2,134
Total liabilities	$4,471	$6,139

Equity:
Share capital	$155,582	$129,413
Share option and warrant reserve	8,728	9,992
Accumulated other comprehensive income	207	22
Deficit	(111,551)	(102,604)
Total equity	$52,966	$36,823
Total liabilities and equity	$57,437	$42,962

	Three months ended September 30,		Nine months ended September 30,
	2020	2019	2020	2019
Operating expenses
Exploration and evaluation costs (Note 7)	$2,164	$3,335	$3,989	$6,535
Fees, salaries and other employee benefits	707	839	2,010	3,240
Insurance	103	76	266	229
Legal and professional fees	138	58	325	230
Marketing and investor relations	176	214	1,034	906
Office and administration	152	85	418	338
Regulatory, transfer agent and shareholder information	168	38	285	182
	3,608	4,645	8,327	11,660

Other expenses (income):
Project investigation costs	16	18	172	104
Accretion of provision for site reclamation and closure (Note 6)	5	10	22	32
Interest and other income	(14)	(14)	(65)	(34)
Finance expense related to loan	10	26	259	26
Amortization of flow-through share premium (Note 4)	–	(733)	(7)	(843)
Gain (loss) on marketable securities	26	13	(40)	(40)
Loss on conversion and amendment of bridge loan (Note 5)	65	–	224	–
Foreign exchange loss	43	7	55	38
	151	(673)	620	(717)
Net loss before income taxes	3,759	3,972	8,947	10,943
Deferred income tax recovery (Note 5)	57	(54)	–	(54)
Loss for the period	$3,816	$3,918	$8,947	$10,889

Other comprehensive loss (income), net of tax
Items that may be reclassified subsequently to profit or loss:
Unrealized currency loss (gain) on translation of foreign operations	19	(47)	(185)	121
Other comprehensive loss (income) for the period	19	(47)	(185)	121
Total comprehensive loss for the period	$3,835	$3,871	$8,762	$11,010
Basic and diluted loss per share (Note 13)	$0.05	$0.06	$0.12	$0.17
Basic and diluted weighted average number of shares outstanding (Note 13)	70,392,736	64,252,771	72,758,821	63,201,950

	Number of common shares	Sharecapital	Share option and warrant reserve	Accumulated other comprehensive income (loss)	Deficit	Total
Balance at December 31, 2018	61,068,264	$121,988	$6,937	$225	$(88,671)	$40,479

Comprehensive loss for the period	–	–	–	(121)	(10,889)	(11,010)
Shares issued pursuant to offering, net of share issue costs and flow-through liability	2,646,902	6,350	–	–	–	6,350
Share options exercised (Note 8b) iv)	592,439	959	(457)	-	-	502
Fair value of warrants issued, net of tax	-	-	144	-	-	144
	–	–	2,843	–	–	2,843
	64,307,605	$129,297	$9,467	$104	$(99,560)	$39,308
	64,340,963	$129,413	$9,992	$22	$(102,604)	$36,823
	–	–	–	185	(8,947)	(8,762)
Shares issued pursuant to offering, net of share issue costs (Note 8b) iii)	6,333,984	14,753	–	–	–	14,753
Shares issued upon conversion of Amended Bridge Loan (Note 8b) ii)	1,318,877	3,334	–	–	–	3,334
Shares issued pursuant to Alturas option (Note 8b) i)	743,187	3,036	–	–	–	3,036
Share options exercised (Note 8b) iv)	1,428,525	5,046	(1,917)	–	–	3,129
Share-based compensation (Note 9a)	–	–	653	–	–	653
Balance at September 30, 2020	74,165,536	$155,582	$8,728	$207	$(111,551)	$52,966

Fury Gold Mines Limited
Condensed Consolidated Interim Statements of Financial Position
Unaudited (Expressed in thousands of Canadian dollars)

	Three months ended September 30,		Nine months ended September 30,
	2020	2019	2020	2019
Cash (used in) provided by:
Operating activities:
Loss for the period	$(3,816)	$(3,918)	$(8,947)	$(10,889)
Items not involving cash:
Interest and other income	(14)	(14)	(65)	(34)
Accretion of provision for site reclamation and closure (Note 6)	5	10	22	32
Finance expense related to loan	10	26	259	26
Gain (loss) on marketable securities	26	13	(40)	(40)
Loss on conversion and amendment of bridge loan (Note 5)	65	–	224	–
Amortization of flow-through share premium (Note 4)	–	(733)	(7)	(843)
Unrealized foreign exchange loss (gain)	25	–	30	(3)
Share-based compensation (Note 9a)	116	744	653	2,843
Depreciation of fixed assets	61	62	185	189
Deferred income tax recovery (Note 5)	57	(54)	–	(54)
Changes in non-cash working capital:
Amounts receivable	(520)	(52)	(722)	(85)
Prepaid expenses and deposits	(1,132)	(119)	(1,114)	(121)
Accounts payable and accrued liabilities	(184)	623	(161)	784
Cash used in operating activities	(5,301)	(3,412)	(9,683)	(8,195)

Investing activities:
Interest received	14	14	65	34
Mineral property acquisition costs	(1,208)	(480)	(1,210)	(842)
Cash used in investing activities	(1,194)	(466)	(1,145)	(808)

Financing activities:
Proceeds from issuance of common shares,
net of cash share issuance costs	(51)	1,863	14,753	6,983
Proceeds from loan, net of transaction costs	–	2,979	(5)	2,979
Interest paid	(64)	–	(64)	–
Proceeds from share option and warrant exercises (Note 8b) iv)	2,957	17	3,129	502
Cash provided by financing activities	2,842	4,859	17,813	10,464
Effect of foreign exchange rate changes on cash	(3)	2	-	(5)
Decrease (increase) in cash	(3,656)	983	6,985	1,456
Cash, beginning of the period	11,301	2,126	660	1,653
Cash, end of the period	$7,645	$3,109	$7,645	$3,109

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”)	Peru	USD	100%
Magma Minerals S.A.C. (“Magma”)	Peru	USD	100%
Homestake Royalty Corporation (inactive)	BC, Canada	CAD	100%
Tier One Metals Inc. (shell company)	BC, Canada	CAD	100%
Sombrero Resources Inc. (shell company)	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*	Deferred*	100	150
June 22, 2021*		200	500
June 22, 2022*		300	700
June 22, 2023*		900	1,500
Total		1,600	3,000

$’000	Committee Bay & Gibson MacQuoid	Homestake Ridge	Peru1	Total
Balance at December 31, 2018	$ 18,871	$ 16,060	$ 4,141	$ 39,072
Additions	11	-	949	960
Impairment of mineral property interests	-	-	(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	-	-	4,246	4,246
Change in estimate of provision for site reclamation and closure (Note 6)	142	-	-	142
Currency translation adjustment	-	-	134	134
Balance at September 30, 2020	$ 19,227	$ 16,060	$ 8,949	$ 44,236

$’000	Flow-through funding and expenditures			Flow-through premium liability
	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 September 30, 2020	$ -	$ -	$ -	$ -

$’000	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	209
Finance expense paid in cash	(64)
Closing balance at July 7, 2020	$ 3,057

Carrying value of Bridge Loan to be derecognized	$ 3,057
Loss on extinguishment of Amended Bridge Loan	$ 65

$’000	Committee Bay & Gibson MacQuoid	Homestake Ridge	Peru1	Total
Assaying	$ 87	$ 8	$ 6	$ 101
Camp cost, equipment and field supplies	71	8	248	327
Geological consulting services	-	20	198	218
Geophysical analysis	-	-	174	174
Permitting, environmental and community costs	13	12	1,063	1,088
Expediting and mobilization	-	-	5	5
Salaries and wages	87	25	89	201
Fuel and consumables	-	-	7	7
Aircraft and travel	-	-	4	4
Share based compensation	7	2	30	39
Total for the three months ended September 30, 2020	$ 265	$ 75	$ 1,824	$ 2,164

$’000	Committee Bay & Gibson MacQuoid	Homestake Ridge	Peru1	Total
Assaying	$ 134	$ 32	$ 17	$ 183
Exploration drilling	232	-	-	232
Camp cost, equipment and field supplies	141	126	59	326
Geological consulting services	113	67	59	239
Geophysical analysis	143	169	-	312
Permitting, environmental and community costs	43	5	196	244
Expediting and mobilization	90	24	5	119
Salaries and wages	387	83	67	537
Fuel and consumables	29	40	5	74
Aircraft and travel	638	182	18	838
Share based compensation	80	38	113	231
Total for the three months ended September 30, 2019	$ 2,030	766	$ 539	$ 3,335

$’000	Committee Bay & Gibson MacQuoid	Homestake Ridge	Peru1	Total
Assaying	$ 107	$ 24	$ 16	$ 147
Exploration Drilling	26	-	-	26
Camp cost, equipment and field supplies	194	24	340	558
Geological consulting services	2	193	291	486
Geological analysis	-	-	174	174
Permitting, environmental and community costs	38	19	1,372	1,429
Expediting and mobilization	5	-	10	15
Salaries and wages	282	106	465	853
Fuel and consumables	-	-	9	9
Aircraft and travel	-	2	53	55
Share based compensation	45	18	174	237
Total for the nine months ended September 30, 2020	$ 699	$ 386	$ 2,904	$ 3,989

$’000	Committee Bay & Gibson MacQuoid	Homestake Ridge	Peru	Total
Assaying	$ 154	$ 43	$ 66	263
Exploration drilling	353	-	-	353
Camp cost, equipment and field supplies	273	136	223	632
Geological consulting services	144	79	479	702
Geophysical analysis	143	169	-	312
Permitting, environmental and community costs	52	9	1,069	1,130
Expediting and mobilization	102	26	24	152
Salaries and wages	576	146	299	1,021
Fuel and consumables	36	40	20	96
Aircraft and travel	701	186	91	978
Share based compensation	201	100	595	896
Total for the nine months ended September 30, 2019	$ 2,735	$ 934	$ 2,866	$ 6,535

$’000	September 30, 2020	December 31, 2019
Opening balance	$ 2,134	$ 1,891
Accretion	22	40
Change in estimate	142	203
Closing balance	$ 2,298	$ 2,134

	Number of common shares	Impact on share capital
Common shares issued at $2.37 per share	6,333,984	$ 15,000
Cash share issue costs	-	(247)
Proceeds net of share issue costs	6,333,984	$ 14,753

	Number of share options	Weighted average exercise price
Outstanding, December 31, 2018	4,192,253	$ 2.74
Granted	2,226,184	2.83
Exercised	(625,798)	0.92
Expired	(155,394)	3.45
Forfeited	(34,626)	2.80
Outstanding, December 31, 2019	5,602,619	$ 2.96
Granted	50,672	2.71
Exercised	(1,428,525)	2.19
Expired	(20,269)	2.90
Forfeited	(8,868)	2.90
Outstanding, September 30, 2020	4,195,629	$ 3.27

	Outstanding				Exercisable
Expiry date	Number of options	Exercise price	Remaining contractual life (years)	Number of options		Exercise price	Remaining contractual life (years)
June 20, 2021	1,398,544	$3.89	0.72	1,398,544		$3.89	0.72
Jan 10, 2022	297,275	4.77	1.28	297,275		4.77	1.28
June 20, 2023	292,553	2.10	2.72	292,553		2.10	2.72
June 26, 2023	405,375	2.10	2.74	405,375		2.10	2.74
Feb 7, 2024	124,991	2.01	3.36	124,991		2.01	3.36
Apr 9, 2024	1,621,500	2.90	3.53	1,397,699		2.90	3.53
Aug 21, 2024	47,294	2.69	3.89	35,470		2.69	3.89
Nov 20, 2024	57,428	2.69	4.14	14,357		2.69	4.14
June 1, 2025	50,672	2.71	4.67	19,002		2.71	4.67
	4,195,632	$ 3.21	2.34	3,885,266		$ 3.24	2.23

September 30, 2020	Canada	Peru1	Total
Restricted cash and cash equivalents	$ 115	$ -	$ 115
Prepaid expenses and deposits, non-current	-	122	122
Equipment, net	1,053	34	1,087
Mineral property interests	35,287	8,949	44,236
	$ 36,455	$ 9,105	$ 45,560

Section 1: Highlights For The Nine Months Ended September 30, 2020 And The Period Up To November 12, 2020		3
1.1	Creation of Fury Gold	3
1.2	Other corporate highlights	3
1.3	Operational highlights - Canada	4
1.4	Operational highlights - Peru	5
Section 2: Date and forward-looking statements		5
2.1	Forward-looking statements and risk factors	6
Section 3: Description of business		7
3.1	Impacts of COVID-19	7
3.2	Committee Bay and Gibson MacQuoid projects	8
3.2.1	Committee Bay	8
3.2.2	Gibson MacQuoid	10
3.3	Homestake Ridge project	10
3.4	Peruvian projects	17
3.4.1	Sombrero	17
3.4.2	Curibaya	18
3.4.3	Huilacollo	18
3.5	Qualified persons and technical disclosures	19
Section 4: Selected annual financial information		22
Section 5: Discussion of operations		22
Section 6: Summary of Quarterly Results		25
Section 7: Financial position and liquidity and capital resources		25
Section 8: Off-balance sheet arrangements		28
Section 9: Transactions with related parties		28
Section 10: Subsequent events		28
Section 11: Critical accounting estimates		29
Section 12: Changes in accounting policies including initial adoption		30
Section 13: Financial instruments and other instruments		31
Section 14: Other required disclosure		31

Class		Cut off grade (g/t Au)	Tonnes (t)	Gold grade (g/t Au)	Contained Au (oz)
Indicated	Near Surface Underground	3.0 4.0	1,760,000 310,000	7.72 8.57	437,000 86,000
			2,070,000	7.85	524,000
Inferred	Near Surface Underground	3.0 4.0	590,000 2,340,000	7.56 7.65	144,000 576,000
			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)
40%	$1,890	$16.80	$373	$239	39.4%	31
30%	$1,755	$15.60	$326	$206	35.8%	32
20%	$1,620	$14.40	$278	$173	32.0%	33
10%	$1,485	$13.20	$231	$141	28.0%	34
Base Case	$1,350	$12.00	$184	$108	23.6%	36
-10%	$1,215	$10.80	$137	$75	18.8%	40
-20%	$1,080	$9.60	$90	$42	13.2%	46
-30%	$945	$8.40	$39	$6	6.4%	75

$’000	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

$’000 Three months ended	Interest income	Net loss	Comprehensive loss	Loss per share
	$	$	$	$ per share
September 30, 2020	14	3,659	3,675	0.03
June 30, 2020	19	2,575	2,756	0.03
March 31, 2020	32	2,556	2,171	0.04
December 31, 2019	10	2,990	3,072	0.04
September 30, 2019	14	3,918	3,871	0.06
June 30, 2019	19	5,045	5,139	0.07
March 31, 2019	1	1,926	2,000	0.03
December 31, 2018	33	2,351	2,166	0.04

Contractual Obligations as of September 30, 2020 (in $’000s)	Due	Amount
Accounts payable and accrued liabilities	Invoice terms	$ 1,128
Total		$ 1,128

	Number of common shares	Impact on share capital (in $’000s)
Common shares issued at $2.37 per share	6,333,984	$ 15,000
Cash share issue costs	-	(247)
Proceeds net of share issue costs	6,333,984	$ 14,753

Expiry date	Number of warrants	Exercise price	Remaining contractual life (years)
Sep 12, 2022	337,812	$ 2.96	1.95

	Three months ended September 30,		Nine months ended September 30,
	2020	2019	2020	2019
Universal Mineral Services Ltd.
Exploration and evaluation costs:
Committee Bay and Gibson MacQuoid	$ 69	$ 97	$ 186	$ 264
Homestake	34	71	98	124
Peru	54	34	146	163
Fees, salaries and other employee benefits	55	63	188	254
Legal and professional fees	1	-	12	-
Marketing and investor relations	31	21	92	61
Office and administration	116	65	303	265
Project investigation costs	135	7	170	22
Total transaction for the periods	$ 495	$ 358	$ 1,195	$ 1,153