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Midnight Sun Mining Corp. — Management Reports 2025
Apr 18, 2025
46158_rns_2025-04-17_846260d6-5278-4cde-b82b-5ad077e67c72.pdf
Management Reports
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MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2024
As at April 17, 2025
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
1. INTRODUCTION
The following management's discussion and analysis ("MD&A") of Midnight Sun Mining Corp. has been prepared as of April 17, 2025. This MD&A should be read in conjunction with the consolidated financial statements ("Financial Statements") of Midnight Sun Mining Corp. and the notes thereto for the year ended December 31, 2024, and the audited consolidated financial statements for the year ended December 31, 2023, which have been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS"). The Financial Statements have been prepared using the accrual basis of accounting except for cash flow information. All figures are expressed in Canadian dollars unless otherwise indicated.
Management is responsible for the preparation and integrity of the Financial Statements, including the maintenance of appropriate information systems, procedures, and internal controls. Management is also responsible for ensuring that information disclosed externally, including the financial statements and MD&A, is complete and reliable.
Description of Business
Midnight Sun Mining Corp. (the "Company" or "Midnight Sun") was incorporated on April 11, 2007, pursuant to the Business Corporations Act of British Columbia. The Company's principal business activity is acquiring, exploring, and evaluating mineral properties and joint venturing or developing these properties further or disposing of them when the evaluation is complete. At December 31, 2023, the Company was in the exploration stage of activity on its jointly held exploration licenses in Zambia, and the Financial Statements include the accounts of its subsidiaries Midnight Sun Mining Zambia Limited ("MSM Zambia"), a company incorporated on October 29, 2013 under the laws of Zambia as well as Midnight Sun (BVI) One Corp. and Midnight Sun (BVI) Two Corp., two companies incorporated in 2018 under the laws of the British Virgin Islands. The Company has consolidated the operations of MSM Zambia since its incorporation.
2. HIGHLIGHTS & SUBSEQUENT EVENTS
Corporate and Financial Highlights for the Year Ended December 31, 2024
- On April 23, 2024, the Company announced that it had established a co-operative exploration plan with First Quantum Minerals Ltd. to jointly define potential feed sources for First Quantum's oxide copper circuit at the Kansanshi Mine.
- On May 9, 2024, the Company issued 4,600,000 stock options to certain directors, officers, employees, and consultants of the Company with an exercise price of $0.225. 4,000,000 of the options expire on May 9, 2029, and 600,000 expire on May 9, 2025.
- On May 22, 2024, the Company closed a non-brokered private placement by issuing 45,454,544 units at a price of $0.22 per unit for gross proceeds of $10,000,000. Each unit consists of one common share of the Company and one common share purchase warrant, entitling the holder to purchase one additional common share of the Company at a price of $0.33 per common share for a period of 36 months.
In connection with the offering, the Company paid finders fees of $431,529, issued 1,374,337 finders' warrants with a life of 36-months and exercise price of $0.33, and issued 588,193 finders' warrants with a life of 36-months and exercise price of $0.22.
MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
- On June 19, 2024, the Company announced the appointment of Dr. Kevin Bonel, P. Geo as the Chief Operating Officer, Zambia.
- On June 19, 2024, the Company granted 550,000 stock options to certain consultants of the Company with an exercise price of $0.33 and life of five years.
- On June 26, 2024, the Company extended the exercise period of a total of 5,619,714 share purchase warrants, all of which are exercisable at $0.50 per common share. The warrants were issued pursuant to a private placement which closed on July 2, 2021. The Company extended the expiry dates for these warrants by an additional twelve months to July 2, 2025.
- On September 19, 2024, the Company announced the commencement of Kazhiba exploration program, designed to define near surface oxide copper resources as a potential feed source for First Quantum’s Kansanshi Mine.
- During the year ended December 31, 2024, the Company entered into an earn-in agreement (the “Agreement”) with KoBold Metals Company (“KoBold”), whereby KoBold can earn a 75% interest in specific areas (the “Dumbwa Target”) within its mineral license 30678-HQ-LEL by incurring US$15,000,000 in exploration expenditures and making cumulative cash payments to the Company of US$500,000 over 4.5 years.
Commencement of the earn-in is subject to a number of conditions, including the reassignment of the license within which the Dumbwa Target is located to FAMS. The Agreement provides that if the conditions are not satisfied by June 1, 2024, the Agreement will terminate. During the year ended December 31, 2024, the Company entered into an amendment whereby the termination date was removed and any party could proceed to terminate the agreement with written notice As at the date of this MD&A, satisfaction of the conditions have not been met and the earn-in agreement KoBold has been terminated.
- During the year ended December 31, 2024, an aggregate of 1,255,000 stock options were exercised for proceeds of $250,050.
- During the year ended December 31, 2024, an aggregate of 3,557,233 warrants were exercised for proceeds of $1,040,102.
- Subsequent to the year ended December 31, 2024, an aggregate of 350,000 options were exercised for proceeds of $78,750.
- Subsequent to the year ended December 31, 2024, an aggregate of 6,542,365 warrants were exercised for proceeds of $2,330,670.
- On January 29, 2025 the Company announced that it had intersected significant high grade oxide copper mineralization at its Kazhiba Target. Highlights include:
- MSZ22-028: 21.0m @ 10.69% copper
- MSZ22-020: 26.0m @ 5.60% copper
- MZZ22-012: 15.0m @ 3.01% copper
- MSZ22-030: 7.0m @ 4.66% copper
MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
- On February 27, 2025 the Company announced that the results of its recently completed 2024 geochemical and geophysical exploration programs have defined significant new sulphide and oxide targets at Kazhiba, with exploration drilling set to commence in Q2 2025.
- On April 2nd, 2025 the Company announced the initiation of its 2025 phase one exploration program designed to significantly advance all three of Midnight Sun’s key target areas: Dumba, Kazhiba and Mitu.
3. EXPLORATION AND EVALUATION ASSETS
Earn-in Agreement
During the year ended December 31, 2020, the Company entered into an Earn-in Agreement with Rio Tinto Mining and Exploration Limited (“Rio Tinto”), whereby Rio Tinto could earn up to a 75% interest in the Solwezi Licences. See Note 6 to the accompanying consolidated financial statements for terms of the agreement. Rio Tinto completed exploration programs in 2020 and 2021 and terminated the Earn-in Agreement in June 2022 prior to the completion of the initial work program and accordingly, no interest was transferred to Rio Tinto.
60% Option Agreement
Pursuant to an option agreement (the “Option”) dated July 30, 2013, the Company acquired a 60% interest in two mineral prospecting licenses 21509-HQ-LEL and 12124-HQ-LPL, the Solwezi Licenses, which are held by subsidiary of Kam Chuen, Zambian Highlight Mining Investment Limited (“ZHMIL”). To earn the 60% interest in the Solwezi Licences Midnight Sun issued a total of 15,333,333 common shares (issued - valued at $4,106,667) to Kam Chuen and incurred a total of $3,666,667 in qualifying expenditures on the Solwezi Licenses. The Company received the 60% interest in ZHLMIL during the year ended December 31, 2019.
Under the Option, Midnight Sun was the operator responsible for managing all exploration and administration of the Solwezi Licenses and the Company has continued in this role since earning the 60% interest.
On September 22, 2020, the Company increased its ownership share in ZHLMIL to 80.65% by participating in an issuance of 16,022 ZHLMIL ordinary shares at a price of $618.52 with a total value of $9,909,927. Of the total subscription, 5,756 ZHLMIL ordinary shares were fully paid up based on previous expenditures incurred by the Company in the amount of $3,560,020. The remaining 10,266 ZHLMIL ordinary shares in the amount of $6,349,726 were fully paid up by way of exploration expenditures made on behalf of ZHLMIL by the Company or the Company’s former earn-in partner, Rio Tinto during the year ended December 31, 2020. On the acquisition of the additional 20.65% interest in the ZHMIL, the Company recognized a decrease to the non-controlling interest of $1,587,043 with a corresponding reduction in deficit.
MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
On December 7, 2022, the Company increased its ownership share in ZHLMIL to 84.30% by participating in an issuance of 7,187 ZHLMIL ordinary shares at a price of $618.52 with a total value of $4,445,303. The remaining ordinary shares in the amount were fully paid up by way of exploration expenditures made on behalf of ZHLMIL by the Company or the Company's earn-in partner, Rio Tinto. On the acquisition of the additional 3.64% interest in the ZHMIL, the Company recognized a decrease to the non-controlling interest of $343,423 with a corresponding reduction in deficit.
Solwezi Licenses – Zambia
On March 1, 2017, the Acting Chief Registrar of Mining Rights issued the licence 21509-HQ-LEL which was in effect for a period of 4 years with the option for future renewals providing the licence is maintained in accordance with the contained terms and the Mines and Minerals Development Act, 2015. On February 28, 2021, licence 21509-HQ-LEL was renewed for a further 3-year period and during the year ended December 31, 2024, the Company applied for an extension on 21509-HQ-LEL. On January 2, 2025, Zambian Mining Licensing Committee issued an update that the license has been approved. In renewing the claim in February 2021, the Company was required to relinquish 50% of the licence area. The relinquished 50% was granted to Rio Tinto Exploration Zambia Limited as licence 28816-HQ-LEL and was held on behalf of the Company as per the terms of the Earn-In and Joint Venture Agreement between Rio Tinto Mining and Exploration Limited (“Rio Tinto”) and Midnight Sun. During the year ended December 31, 2024, the licence was transferred from Rio Tinto to the Company’s wholly-owned subsidiary, FAMS.
On November 30, 2018, the Zambian Mining Cadastre issued a renewal of prospecting license 12124-HQ-LPL as large-scale exploration license, 12124-HQ-LEL, having an expiration date of December 23, 2021. This renewal was the final renewal period available to ZHLMIL. In accordance with the Mines and Minerals Development Act, 2015, for a period of 12 months, ZHLMIL is precluded from owning the same license area which expired. In order to preserve the license area, Rio Tinto formed a new corporation, Solwezi Metals Exploration Ltd., to apply for a new License over the same area. The relationship between Solwezi Metals Exploration Ltd. and Midnight Sun is governed by the terms of the Earn-In and Joint Venture Agreement between Rio Tinto and Midnight Sun. Solwezi Metals Exploration Ltd.’s application was accepted by the Zambian Mining Cadastre on November 23, 2021, and licence 30678-HQ-LEL was granted on March 27, 2023.
Exploration Property - Expenditures
As at December 30, 2024, the Company had funded the following expenditures on the Solwezi Licenses:
| Site and project expenditures | 31-Dec-23 | Additions | 31-Dec-24 |
|---|---|---|---|
| Acquisition costs | $ 12,957,223 | $ - | $ 12,957,223 |
| Assays | 340,681 | 55,950 | 396,631 |
| Diamond drilling | 4,029,417 | 272,027 | 4,301,444 |
| Field expenses | 1,341,175 | 12,912 | 1,354,087 |
| General & administration | 960,558 | 77,333 | 1,037,891 |
| Geological consulting | 1,811,195 | 261,372 | 2,072,567 |
| License | 268,870 | 13,098 | 281,968 |
| Travel and accommodation | 789,320 | 30,322 | 819,642 |
| Total operations funded | $ 22,498,439 | $ 723,014 | $ 23,221,453 |
MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
The following table presents the Company’s mineral properties on a property-by-property basis for the two most recent financial years.
| Solwezi | |
|---|---|
| Balance, December 31, 2022 | $ 22,219,072 |
| Exploration expenditures | 279,367 |
| Balance, December 31, 2023 | 22,498,439 |
| Exploration expenditures | 723,014 |
| Balance, December 31, 2024 | $ 23,221,453 |
Exploration Property – Activities
The MMA properties comprise 506 km² of prospective geology contiguous to the mine license held by First Quantum Minerals which contains the Kansanshi Mining Complex. The Kansanshi Mine is one of the largest operating copper mines in Africa. The MMA licenses have been sporadically explored by operators prior to 2012 and ensuing exploration activity has generated multiple highly prospective zones for advanced exploration, namely Dumbwa, Kazhiba, Mitu, and Crunch. In addition, significant potential for the exploration and resource development of copper oxides exists across the Company’s licences.
The Dumbwa Target features a high-grade copper-in-soil anomaly which extends for over 20 kilometres along strike and +1 kilometre in width with peak observed values up to 0.73% copper. Work to date has identified the potential for multiple stacked mineralized horizons which are interpreted to be analogous to Barrick’s Lumwana Mine located approximately 40 kilometres to the west of the target area. Exploration work, which includes the geochemical sampling and geophysical surveys, suggest that systematic drilling guided by structural controls is the next step towards establishing continuity, size, and scale of an underlying system.
During the year ended December 31, 2024, the Company entered into an earn-in agreement with Kobold Metals Company which allows Kobold to earn a 75% interest in the Dumbwa target by incurring US $15 million in exploration expenditures and making cumulative cash payments to the Company of US $500,000. Subsequent to year end, the earn-in was terminated prior to any field work by Kobold and the Company now retains 100% ownership of its flagship Dumbwa Target.
The Kazhiba Dome Target is located less than 10 kilometres from the Kansanshi Mine Complex. Multiple drill intercepts in work completed to date have identified a high-grade copper oxide blanket, the source of which is yet to be found.
On September 19, 2024, the Company announced the start of exploration work at Kazhiba as part of the previously announced Cooperative Exploration Plan in place with First Quantum Minerals. This program, designed to define near surface oxide copper resources as a potential feed source for First Quantum’s Kansanshi Mine, includes 3,000 metres of reverse circulation drilling, partial ionic leach soil sampling and an induced polarization survey over a previously untested anomaly at Kazhiba.
On January 8th the Company announced the completion of the Kazhiba exploration program with a total of 2,005 metres of RC Drilling within 54 holes as well as wide spaced IP Surveying of additional targets at Kazhiba and a partial ionic leach geochemical survey.
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MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
On January 29th, 2025 the Company announced that it had intersected high-grade oxide copper in the recently completed Kazhiba exploration program. Drill highlights include:
- MSZ22-028: 21.0m @ 10.69% copper
- MSZ22-020: 26.0m @ 5.60% copper
- MZZ22-012: 15.0m @ 3.01% copper
- MSZ22-030: 7.0m @ 4.66% copper
In addition, on February 27th 2025 the Company announced that the 2024 geochemical and geophysical exploration programs have defined significant new sulphide and oxide targets on Kazhiba
The Mitu Trend targets lie west of the Dumbwa target and were developed based on the interpretation of airborne magnetic data which highlighted a corridor of intense deformation, about 8 – 10 kilometres wide. In the 2022 field season, Midnight Sun completed seven holes on the Mitu Trend target area to test the continuity of the historic intercept in hole MDD-17-15 which measured 3.44% copper, 0.07% cobalt and 0.06% nickel over 11.6m (see the Company’s news release dated July 4, 2017). Initial results on the Mitu trend were announced on November 7, 2022.
Copper mineralisation intercepted at Mitu is associated with cobalt, nickel, and anomalous gold. This suite of metals is comparable in mineralization style and grade to those at First Quantum’s Sentinel Mine, located approximately 120 kilometres west of Midnight Sun’s Solwezi Project.
2022 Mitu Drill Highlights Include:
- MTDD044: 11.50m @ 1.41% copper, 0.11% cobalt, and 0.03% nickel
- Incl. 4.15m @ 1.29% copper, 0.13% cobalt, and 0.09% nickel; and
- Incl. 5.80m @ 1.86% copper, 0.07% cobalt, and 0.02% nickel
- MTDD045: 7.30m @ 0.58% copper, 0.02% cobalt, and 0.02% nickel
- MTDD047: 26.10m @ 0.32% copper, 0.07% cobalt, and 0.05% nickel
- MTDD048: 22.25m @ 0.23% copper, 0.01% cobalt, and 0.03% nickel
The Crunch Target is situated between the Kazhiba Dome in the northwest and the Solwezi Dome in the southeast. An analysis of a VTEM electromagnetic survey over the target area suggests that a northeast trending wedge of the Copperbelt strata is crunched between the two domes with apparent interference fold patterns. Ten holes were drilled at the Crunch Zone target area to test a Kansanshi-style target model that resulted in significant geological information.
On April 2nd, 2025 the Company announced the initiation of exploration across the Solwezi project. This phase of exploration includes an IP survey at the Dumbwa Target, Kazhiba oxide and sulphide drill testing and a Mitu Target partial ionic leach sampling program. The program is designed to advance the scale of known oxide copper mineralization, test a large, brand new target for sulphide copper mineralization, and advance the Mitu and Dumba Targets towards drill testing.
Darin Labrenz, P.Geo., a Qualified Person under NI 43-101, has reviewed the technical information contained herein.
MIDNIGHT SUN
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MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
4. SELECTED ANNUAL INFORMATION
The following table summarizes selected financial information for the Company for each of its most recently completed financial years. The information set forth below should be read in conjunction with the Financial Statements. All information was prepared in accordance with IFRS.
| Year ended Dec 31 2024$ | Year ended Dec 31 2023$ | Year ended Dec 31 2022$ | |
|---|---|---|---|
| Total revenue | Nil | Nil | Nil |
| Net loss | (3,348,941) | (1,537,206) | (3,179,880) |
| Basic and fully diluted loss per share | (0.02) | (0.01) | (0.03) |
| Total assets | 21,992,049 | 13,958,231 | 13,690,639 |
| Total non-current liabilities | 244,895 | 314,090 | 40,000 |
| Dividends declared | Nil | Nil | Nil |
Factors which have caused period to period variations in total asset include the availability of equity funding, which is directly linked to working capital items. The Company incurred $723,014 in property expenditures during the year ended December 31, 2024, and $279,367 during the year ended December 31, 2023.
The net loss for the year ended December 31, 2024 of $3,348,941 was primarily comprised of accounting and audit fees of $162,289 (2023 - $131,451), consulting fees of $122,186 (2023 - $72,749), exploration cost of $723,014 (2023 - $279,367), wages and benefits of $782,237 (2023 - $394,239), office and miscellaneous of $62,248 (2023 - $71,566), investor and shareholder relations of $588,049 (2023 - $261,502), legal fees of $163,852 (2023 - $30,808), share-based payments of $847,636 (2023 - $525,725), allowance for doubtful accounts recovery of $nil (2023 - $346,135) and gain on investments of $175,000 (2023 - $nil).
MIDNIGHT SUN
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MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
5. SUMMARY OF QUARTERLY RESULTS
The tables below present's selected financial data for the Company's eight most recently completed quarters, all information was prepared in accordance with IFRS.
| Dec 31 | Sept 30 | June 30 | Mar 31 | |
|---|---|---|---|---|
| 2024 | 2024 | 2024 | 2024 | |
| $ | $ | $ | $ | |
| Financial results | ||||
| Net loss for period | 1,044,913 | 608,776 | 1,301,444 | 393,808 |
| Basic & diluted loss per share | 0.01 | 0.00 | 0.00 | 0.00 |
| Exploration expenditures | 468,429 | 155,831 | 64,511 | 34,243 |
| Statement of Financial Position | ||||
| Cash | 5,310,552 | 2,676,390 | 3,533,058 | 40,663 |
| Exploration & evaluation assets | 12,957,223 | 12,957,223 | 12,957,223 | 12,957,223 |
| Total assets | 21,992,049 | 22,073,818 | 22,594,093 | 13,973,463 |
| Shareholders' equity | 21,535,559 | 21,632,421 | 22,082,857 | 13,034,909 |
| Dec 31 | Sept 30 | June 30 | Mar 31 | |
| 2023 | 2023 | 2023 | 2023 | |
| $ | $ | $ | $ | |
| Financial results | ||||
| Net loss for period | 156,497 | 125,782 | 360,467 | 894,460 |
| Basic & diluted loss per share | 0.00 | 0.00 | 0.00 | 0.01 |
| Exploration expenditures | 41,705 | 40,783 | 76,941 | 119,938 |
| Statement of Financial Position | ||||
| Cash | 23,883 | 18,552 | 46,691 | 322,370 |
| Exploration & evaluation assets | 12,957,223 | 12,957,223 | 12,957,223 | 12,957,223 |
| Total assets | 13,958,231 | 13,569,271 | 13,610,009 | 13,845,003 |
| Shareholders' equity | 13,227,087 | 13,383,584 | 13,450,998 | 13,673,851 |
Factors which have caused period to period variations in total asset include the availability of equity funding, which is directly linked to working capital items. The Company incurred $723,014 in property expenditures during the year ended December 31, 2024, and $279,367 during the year ended December 31, 2023.
6. DISCUSSION OF OPERATIONS
The following discussions address some of the reasons for variations in the quarterly numbers, but as is typical with junior exploration and mining companies there can be significant fluctuation from quarter to quarter. Quarterly results can vary greatly depending on whether the Company is in an active exploration phase or has granted stock options. Activity levels are primarily dependent on the success of the Company's ongoing exploration and evaluation work and the Company's ability to raise funds through equity issuances. The granting of stock options can cause a material variation in net loss on a quarterly basis due to the resulting share-based payment charges which can be significant.
MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
Overall Performance & Results of Operations
Three Month Period Ended December 31, 2024.
The Company’s loss for the three months ended December 31, 2024, was $1,044,913, or $0.01 per share, as compared to a loss of $156,497, or $0.00 per share for the three months ended December 31, 2023. The increase was primarily a result of increased investor relations expenditures and exploration expenditures on a drill program completed during the period.
Significant expenses during the three-month period ended December 31, 2024, consisted of accounting and audit fees, $36,000 (2023 - $28,500), consulting fees, $56,682 (2023 - $9,000), exploration costs, $468,429 (2023 - $41,705), investor and shareholder relations, $218,571 (2023 - $129,656), legal fees, $57,060 (2023 - $5,642), office services and miscellaneous, $45,772 (2023 - $7,248), regulatory and transfer agent fees, $2,472 (2023 - $6,262), share-based payments, $9,482 (2023 - $nil), and wages and benefits, $131,983 (2023 - $107,912).
Twelve Month Period Ended December 31, 2024.
The Company’s loss for the twelve months ended December 31, 2024, was $3,348,941, or $0.02 per share, as compared to a loss of $1,537,206, or $0.01 per share for the twelve months ended December 31, 2023. The change was primarily related to an increase in investor relations fees resulting from a dynamic investor relations campaign implemented by the Company’s Director of Marketing and Communications, increased legal fees associated with the since terminated Kobold earn-in agreement, bonuses paid included within benefits and wages, higher exploration costs related to a drill program, and share-based payments related to options granted and vested during the period.
Major expenses during the year ended December 31, 2024 consisted of accounting and audit fees of $162,289 (2023 - $131,451), consulting fees of $122,186 (2023 - $72,749), exploration cost of $723,014 (2023 - $279,367), wages and benefits of $782,237 (2023 - $394,239), office and miscellaneous of $62,248 (2023 - $61,566), investor and shareholder relations $588,049 (2023 - $261,502), legal fees of $163,852 (2023 - $30,808), regulatory and transfer agent fees $37,618 (2023 - $45,214), share-based payments of $847,636 (2023 - $525,725), and recovery on allowance for doubtful accounts of $nil (2023 - $346,135).
7. LIQUIDITY AND CAPITAL RESOURCES
As at December 31, 2024, the Company had $5,310,552 in cash and held a $2,500,000 six-month locked GIC maturing June 10, 2025, which had a value of $2,504,555 inclusive of interest as at December 31, 2024. The Company does not have cash flow from operations due to it being an exploration stage company; therefore, financings have been the sole source of funds. At December 31, 2024, the Company had a working capital of $7,829,510. In the opinion of management this working capital is sufficient to support the Company’s continuing general administrative and corporate operating requirements as well as any planned exploration activities.
MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
Liquidity Outlook
In order to finance the Company’s exploration programs and to cover administrative and overhead expenses, the Company raises money through the sale of equity, from the exercise of convertible securities and from optioning its exploration and evaluation assets. Many factors influence the Company’s ability to raise funds, including the health of the resource market, the climate for mineral exploration investment, the Company’s track record, and the experience and calibre of its management. Actual funding requirements may vary from those planned due to several factors, including the progress of exploration activities.
During the year ended December 31, 2024, the Company closed a $10M private placement and has evaluated that it has sufficient cash to meet its needs over the next fiscal year. Accordingly, the Company does not have any current plans to seek additional funding by way of equity financing.
Capital Resources
The Company has sufficient capital to cover its administrative overhead expenses along with any planned exploration activities for the next twelve months.
Use of Proceeds
Since entering into the Earn-in agreement for the Solwezi property, the Company completed the following financings:
- In November 2013, the Company raised $0.70 million through a private placement
- In May 2014, the Company raised $0.34 million through a private placement
- In October 2015, the Company raised $0.29 million through a private placement.
- In January 2016, the Company raised $0.40 million through a private placement.
- In December 2016, the Company raised $1.31 million through a private placement.
- In November 2017, the Company raised $2.70 million through a private placement.
- In May 2018, the Company raised $1.1 million through a private placement.
- In December 2018, the Company raised $1.00 million through a private placement.
- In August 2019, the Company raised $0.33 million through a private placement.
- In May 2020, the Company raised $1.07 million through a private placement.
- In July 2021, the Company raised $1.97 million through a private placement.
- In January 2023, the Company raised $0.93 million through a private placement.
- In May 2024, the Company raised $10.00 million through a private placement.
The following table sets out a comparison of how the Company used the proceeds following the closing date, an explanation of the variances and the impact of the variance on the ability of the Company to achieve its business objectives and milestones.
MIDNIGHT SUN
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MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
| Intended Use of Proceeds | Actual Use of Proceeds |
|---|---|
| To advance the Company’s properties and for general and administrative purposes. | To February 28, 2025, the Company incurred a total of $12,957,223 in mineral property acquisition costs for the Solwezi property, of which $4,106,667 was share-based. The Company has also accumulated a total of $10,264,230 in exploration costs on the project. The remaining funds are to be spent on general operating and administrative costs. |
| Explanation of variances and the impact of variances on the ability of the Company to achieve its business objectives and milestones | No material variances are identifiable to the Company. Proceeds have been used as intended and to further acquisition and exploration of the Company’s Solwezi licenses while meeting administrative requirements. |
8. TRANSACTIONS WITH RELATED PARTIES
The Company’s related parties at December 31, 2024, consist of 7 officers and directors (and their related companies).
| Name of Related Party | Position at December 31, 2024 | Nature of transaction |
|---|---|---|
| Allan J. Fabbro | Director & CEO | Director |
| Fengjie Huang | Former Director of Zambian subsidiary – resigned 2024 | Management services |
| Mathew Mackenzie | Secretary | Corporate secretary |
| Richard J. Mazur | Director | Director |
| Wayne Moorhouse | Director | Director |
| Brett Richards | Director | Director |
| Robert A. Sibthorpe | VP Exploration & Director | Management services |
| Alastair Brownlow / Red Fern Consulting Ltd. | CFO | Management services |
As at December 31, 2024, $6,963 (2023 - $81,383) is due to officers, directors, or companies with a director in common for cash advances, unpaid geological consulting fees, unpaid wages and bonuses and unpaid expenses.
During the year ended December 31, 2024, the Company charged rent of $36,000 (2023 - $18,000) to a company (2023 – two companies) related by common directors and officers. During the year ended December 31, 2024, the Company recognized an allowance for doubtful accounts of $9,000 related to rent recognized during the year ended December 31, 2023. As at December 31, 2024, $nil (2023 - $12,600) is included within receivables from related parties.
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MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
Non-current Investments
During the year ended December 31, 2020, the Company purchased 2,500,000 common shares of Red Sea Resources Ltd. ("Red Sea") at a price of $0.01 per common share for a total of $25,000. Red Sea, a private company, has common officers and directors as the Company and is in the process of identifying and acquiring exploration and evaluation properties in Egypt. During the year ended December 31, 2020, the Company was granted an additional 800,000 common shares of Red Sea valued at $0.05 per share for a total of $40,000 as a financing fee on the issuance of a US$650,000 loan. During the year ended December 31, 2021, the Company was granted an additional 200,000 common shares of Red Sea, valued at $0.10 per common share on the advance of an additional US$100,000 loan.
As at December 31, 2024, the investments were valued at $0.20 (2023 - $0.15) per common share for a total value of $700,000 (2023 - $525,000), based on the valuation of recently closed private placements by Red Sea. During the year ended December 31, 2024, the Company recognized an unrealized gain on investments of $175,000 (2023 - $nil).
Loans and Debenture Receivable
During the year ended December 31, 2020, the Company issued a promissory note to Red Sea in the amount of US$650,000 without interest, payable on demand. During the year ended December 31, 2021, the Company extended an additional US$108,990 to Red Sea, resulting in a total loan of US$758,990 outstanding ($962,248).
During the year ended December 31, 2022, the Company entered into an agreement whereby it increased the amount advanced to $1,331,129 and renegotiated the instrument as a convertible debenture denominated in Canadian dollars, maturing on January 11, 2023, and convertible at $0.15 per common share. The convertible debenture includes interest of $63,030 owing at the time of repayment.
As at December 31, 2024, the Company had taken an allowance for doubtful accounts of $981,129 (2023 - $981,129) on the Red Sea loans. During the year ended December 31, 2024, a total of $nil (2023 - $350,000) was repaid on the loans and reversed against the allowance for doubtful accounts. As at December 31, 2024, a total of $981,129 (2023 - $981,129) was owing.
During the year ended December 31, 2021, the Company issued loans to officers of the Company in the amount of $173,333. The loans are unsecured, bear interest at 3% per annum, and mature on February 9, 2022. During the year ended December 31, 2022, the Company entered into an amending agreement to extend the maturity of these loans to December 31, 2022. During the year ended December 31, 2023, the Company recognized interest income of $2,482 on the loans and received repayments of $120,552.
A reconciliation of the Company's loans and debentures receivable as at December 31, 2024, and December 31, 2023:
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Opening balance | - | $ 119,969 |
| Interest accrued | - | 2,482 |
| Change in allowance for bad debt | - | 346,135 |
| Repayments | - | (470,552) |
| Foreign Exchange | - | 1,966 |
| $ | - | $ - |
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MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
Loans payable
During the year ended December 31, 2023, the Company received an aggregate of $13,000 in unsecured loans from two officers of the Company. The loans are non-interest bearing and are repayable on demand. During the year ended December 31, 2024, the Company received additional $73,750 from the two officers under the same terms. During the year ended December 31, 2024, these loans were repaid in full.
- KEY MANAGEMENT COMPENSATION
Compensation paid or accrued to key management and/or their related companies during the year ended December 31, 2024, and 2023 is as follows:
| Nature of Expenditure | For the Year Ended December 31, | |
|---|---|---|
| 2024 | 2023 | |
| Wages and benefits: | ||
| Allan Fabbro | $ 287,000 | $ 132,000 |
| Matthew Mackenzie | 221,500 | 108,000 |
| Richard J. Mazur | 30,750 | 12,000 |
| Wayne Moorhouse | 12,000 | 12,000 |
| Brett Richards | 12,000 | 12,000 |
| Robert A. Sibthorpe | 38,000 | 38,000 |
| 601,250 | 314,000 | |
| Accounting fees: | ||
| Alastair Brownlow¹ | 103,000 | 78,000 |
| 103,000 | 78,000 | |
| Consulting fees | ||
| Robert A. Sibthorpe | 47,500 | 21,500 |
| Fengjie Huang | 4,409 | 36,749 |
| 51,909 | 58,249 | |
| Share-based payments | 393,710 | 392,989 |
| Total | $ 1,149,869 | $ 843,238 |
- Paid to Red Fern Consulting Ltd, a company of which Mr. Brownlow is an associate.
Key management consists of those individuals having authority and responsibility for, directly or indirectly, planning, directing, and controlling the activities of the Company. Wages are paid to the Company’s CEO, Corporate Secretary and Directors and Consulting fees are amounts paid to the consulting firm of which the Company’s CFO is an associate.
All the above payments and accruals were made in the normal course of operations and have been valued here and in the Financial Statements at the exchange amount, which is the amount of consideration established and agreed to by the related parties.
- OFF-BALANCE SHEET ARRANGEMENTS
The Company has no off-balance sheet arrangements.
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MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
11. PROPOSED TRANSACTIONS
The Company does not currently have any proposed transactions other than the transactions discussed in this MD&A however, the Company will continue to review potential property acquisitions in addition to conducting exploration work on its properties.
12. CHANGES IN ACCOUNTING POLICY
In the current year, the Company has applied the below amendment to IFRS Standards and Interpretations issued by the IASB that was effective for annual periods that begin on or after January 1, 2024.
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgments—Disclosure of Accounting Policies
The amendments change the requirements in IAS 1 with regard to disclosure of accounting policies. The amendments replace all instances of the term "significant accounting policies" with "material accounting policy information." Accounting policy information is material if, when considered together with other information included in an entity's financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements.
The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed.
Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material. The International Accounting Standards Board ("IASB") has also developed guidance and examples to explain and demonstrate the application of the 'four-step materiality process' described in IFRS Practice Statement 2.
The amendment was applied effective January 1, 2024 and did not have a material impact on the Company's financial statements.
New accounting standards issued but not yet effective:
IFRS 18, Presentation and Disclosure in Financial Statements ("IFRS 18"), which will replace IAS 1, Presentation of Financial Statements aims to improve how companies communicate in their financial statements, with a focus on information about financial performance in the statements of loss and comprehensive loss, in particular additional defined subtotals, disclosures about management-defined performance measures and new principles for aggregation and disaggregation of information. IFRS 18 is effective from January 1, 2027. Companies are permitted to apply IFRS 18 before that date. The Company has not yet determined the impact of this amendment on its financial statements
13. FINANCIAL INSTRUMENTS AND RELATED RISKS
The Board, through the Audit Committee, is responsible for identifying the principal risks facing the Company and ensuring that appropriate risk management systems are developed and implemented. The Company manages its exposure to financial risks, including liquidity risk, foreign exchange rate risk, interest rate risk and credit risk in accordance with its risk management framework.
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MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
Financial Instruments
Financial assets
The Company classified its financial assets in the following categories: at fair value through profit and loss ("FVTPL"), at fair value through other comprehensive income (FVTOCI"), or at amortized cost. The determination of the classification of financial assets is made at initial recognition. Equity instruments that are held for trading (including all equity derivative instruments) are classified as FVTPL; for other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI.
The Company’s accounting policy for each of the categories is as follows:
Financial assets at FVTPL: Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the statement of (loss) income. Realized and unrealized gains and losses arising from changes in the fair value of financial assets held at FVTPL are included in the statement of operations and comprehensive loss in the period.
Financial assets at FVTOCI: Financial assets carried at FVTOCI are recorded at fair value and transaction costs are expensed in the statement of operations and comprehensive loss. Realized and unrealized gains and losses arising from changes in fair value of the financial assets held at FVTOCI are included in other comprehensive (loss) income in the period.
Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive (loss) income as they arise.
Financial assets at amortized cost: A financial asset is measured at amortized cost if the objective of the business model is to hold the financial asset for the collection of contractual cash flows, and the asset’s contractual cash flows are comprised solely of payments of principal and interest. They are classified as current assets or non-current assets based on their maturity date and are initially recognized at fair value and subsequently carried at amortized cost less any impairment.
Impairment of financial assets at amortized cost: The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost.
The following table shows the classification of the Company’s financial assets under IFRS 9:
| Financial asset | IFRS 9 Classification |
|---|---|
| Cash | Amortized cost |
| Advances and deposits | Amortized cost |
| Short-term investments | FVTPL |
| Loan receivable | Amortized cost |
| Receivables | Amortized cost |
Financial liabilities
The Company classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was incurred. The Company's accounting policy for each category is as follows:
Fair value through profit or loss – This category comprises derivatives or liabilities acquired or incurred principally for the purpose of selling or repurchasing in the near term. They are carried in the statement of
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MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
financial position at fair value with changes in fair value recognized in the statement of operations and comprehensive loss.
Other financial liabilities - This category includes accounts payable and accrued liabilities which are recognized at amortized cost using the effective interest method.
Transaction costs in respect of financial instruments at fair value through profit or loss are recognized in the statement of operations and comprehensive losses immediately, while transaction costs associated with all other financial instruments are included in the initial measurement of the financial instrument.
The following table shows the classification of the Company’s financial liabilities under IFRS 9:
| Financial liability | IFRS 9 Classification |
|---|---|
| Accounts payable and accrued liabilities | Other financial liabilities |
| Due to related parties | Other financial liabilities |
| Loan payable | Other financial liabilities |
The carrying value of receivables, loan receivable, short-term investments, accounts payable and accrued liabilities, loan payable, and amounts due to related parties approximated their fair value because of the short-term nature of these instruments.
Related Risks
Interest rate risk
The Company has non-material exposure at December 31, 2024 and December 31, 2023 to interest rate risk through its financial instruments.
Currency Risk
Throughout the year ended December 31, 2024, the majority of the Company’s cash was held in Canadian dollars, the Company’s functional and reporting currency. The Company is exposed to currency risk due to accounts payable denominated in US Dollars. A 1% change in the foreign exchange rate between the Canadian and US Dollar would not result in a material fluctuation in the loss for the period.
Credit risk
The Company has some cash balances and no interest-bearing debt. The Company’s current policy is to invest excess cash in investment-grade short-term deposit certificates issued by Canadian financial institutions with which it keeps its bank accounts and management believes the risk of loss to be remote. At December 31, 2024, the Company had a $2,500,000 six-month locked guaranteed interest certificate with a major Canadian financial institution recognized within short-term investments and valued at $2,504,555 inclusive of accrued interest, for which Management believes the risk of loss to be remote. The Company also has $58,430 held with a major financial institution in Zambia. Management believes the risk of loss to be remote.
Receivables consist of goods and services tax due from the Government of Canada in the amount of $11,028. The Company considers credit risk associated with these amounts to be low.
Liquidity Risk
The Company attempts to manage liquidity risk by maintaining sufficient cash balances. Liquidity requirements are managed based on expected cash flows to ensure that there is sufficient capital in order to meet short-term obligations. As at December 31, 2024, the Company had $5,310,552 cash (2023 - $23,883) and current liabilities of $211,595 (2023 - $417,054).
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MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
Finance Risk
The Company has no source of operating cash flow and no assurance that additional funding will be available to it for further exploration and development of its projects when required. Although the Company has been successful in the past in obtaining financing through the sale of equity securities or joint ventures, there can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain such additional financing could result in the delay or indefinite postponement of further exploration and development of its properties.
Price Risk
The Company is exposed to price risk with respect to commodity prices. The Company closely monitors commodity prices to determine the appropriate course of action to be taken by the Company.
14. RISKS AND UNCERTAINTIES
The Company has no history of profitable operations, and its present business is at an early stage. As such, the Company is subject to many risks common to such enterprises, including under-capitalization, cash shortages and limitations with respect to personnel, financial and other resources and the lack of revenues. There is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations.
The risks and uncertainties described in this section are not inclusive of all risks and uncertainties to which the Company may be subject.
Early Stage – Need for Additional Funds
The Company has no history of profitable operations, and its present business is at an early stage. As such, the Company is subject to many risks common to such enterprises, including under-capitalization, cash shortages and limitations with respect to personnel, financial and other resources, and the lack of revenues. There is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations.
Political Risk
The Company's operations and investments may be affected by local political and economic developments including: expropriation; nationalization; invalidation of governmental orders; permits or agreements pertaining to property rights; failure to enforce existing laws; failure to uphold property rights; political unrest; labour disputes; limitations on repatriation of earnings; limitations on foreign ownership; inability to obtain or delays in obtaining necessary mining permits; opposition to mining from local, environmental or other non-governmental organizations; government participation; royalties, duties, rates of exchange, high rates of inflation, price controls, exchange controls, currency fluctuations; taxation and changes in laws, regulations or policies; as well as by laws and policies of Canada affecting foreign trade, investment and taxation.
Location Risk
The Company's property interests are located in remote, undeveloped areas and the availability of infrastructure such as surface access, skilled labour, fuel and power at an economic cost, cannot be assured. These are integral requirements for exploration, development and production facilities on exploration and evaluation assets.
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MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
Discovery Risk
Resource property acquisition, exploration, development, and operation is a highly speculative business that involves significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. While the discovery of precious metals and other minerals may result in substantial rewards, few properties that are explored are ultimately developed into producing mines. Major expenses may be required to locate and establish economically viable mineral deposits, to develop metallurgical processes and to construct mining and processing facilities at a particular site. It is impossible to ensure that the acquisition, exploration, or development programs planned by the Company will result in a profitable commercial mining operation. The potential for any project to eventually become an economically viable operation depends on numerous factors including: the quantity and quality of the minerals discovered if any, the proximity to infrastructure, metal, and mineral prices (which vary considerably over time) and government regulations. The exact effect these factors can have on any given exploration property cannot accurately be predicted but the effect can be materially adverse.
Environmental Risk
Environmental laws and regulations may affect the operations of Midnight Sun. These laws and regulations set various standards regulating certain aspects of health and environmental quality. They provide for penalties and other liabilities for the violation of such standards and establish, in certain circumstances, obligations to rehabilitate current and former facilities and locations where operations are or were conducted. Furthermore, the permission to operate could be withdrawn temporarily where there is evidence of serious breaches of health and safety, or even permanently in the case of extreme breaches. Significant liabilities could be imposed on the Company for damages, clean-up costs or penalties in the event of certain discharges into the environment, environmental damages caused by previous owners of acquired properties or non-compliance with environmental laws or regulations. The Company intends to minimize these risks by taking steps to ensure compliance with environmental, health and safety laws and regulations and operating to international environmental standards.
Price Risk
The market price of precious metals and other minerals is volatile and cannot be controlled.
Conflicts
The Company’s directors and officers serve as directors or officers or may be associated with other reporting companies or have significant shareholdings in other public companies. To the extent that such other companies may participate in business or asset acquisitions, dispositions, or ventures in which the Company may participate, the directors and officers of the Company may have a conflict of interest in negotiating and concluding terms respecting the transaction.
Dependence on Key Personnel
The Company is very dependent upon the personal efforts and commitment of its existing management. To the extent that management's services would be unavailable for any reason, a disruption to the operations of the Company could result, and other persons would be required to manage and operate the Company.
Competitive Risk
The mineral industry is intensely competitive in all its phases. The Company competes with many other mineral exploration companies who have greater financial resources and technical capacity.
15. COMMITMENTS
Other than obligations disclosed in the Financial Statements and elsewhere this MD&A the Company does not have any commitments.
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MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
16. NATURE OF SECURITIES
The purchase of the Company’s securities involves a high degree of risk and should be undertaken only by investors whose financial resources are sufficient to enable them to assume such risks. The Company’s securities should not be purchased by persons who cannot afford the possibility of the loss of their entire investment. Furthermore, an investment in the Company’s securities should not constitute a major portion of an investor's portfolio.
17. DISCLOSURE OF OUTSTANDING SHARE DATA
The table below presents the Company’s common share data as of April 17, 2025.
| Price | Expiry date | April 17, 2025 | |
|---|---|---|---|
| Common shares issued and outstanding | 175,740,156 | ||
| Securities convertible into common shares: | |||
| Stock Options | $0.135 | May 6, 2025 | 1,830,000 |
| $0.31 | April 28, 2026 | 200,000 | |
| $0.165 | August 12, 2027 | 2,950,000 | |
| $0.21 | March 10, 2028 | 2,265,000 | |
| $0.225 | May 9, 2029 | 4,000,000 | |
| $0.225 | May 9, 2025 | 250,000 | |
| $0.33 | June 19, 2029 | 550,000 | |
| Total Options | 12,045,000 | ||
| Warrants | $0.50 | July 2, 2024 | 4,137,714 |
| $0.33 | May 22, 2027 | 42,433,454 | |
| $0.33 | May 22, 2027 | 1,343,822 | |
| Total Warrants | 47,914,990 | ||
| Total options & warrants outstanding | 59,959,990 |
18. ADDITIONAL DISCLOSURE FOR VENTURE ISSUERS
Additional disclosure concerning Midnight Sun’s general and administrative expenses and exploration and evaluation assets expenditures is provided in the Company’s Financial Statements. These Financial Statements are available on SEDAR+ at www.sedarplus.com.
19. APPROVAL
The Board of Directors oversees management’s responsibility for financial reporting and internal control systems through an Audit Committee. This Committee meets periodically with management and annually with the independent auditors to review the scope and results of the annual audit and to review the financial statements and related financial reporting and internal control matters before the financial statements are approved by the Board of Directors and submitted to the shareholders of the Company. The Board of Directors of Midnight Sun have approved the financial statements, and the disclosure contained in this MD&A. A copy of this MD&A will be provided to anyone who requests it.
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MIDNIGHT SUN
MIDNIGHT SUN MINING CORP.
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2024
20. FORWARD LOOKING INFORMATION
Forward-looking statements relate to future events or future performance and reflect management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of operations, environmental risks, permitting risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements which are filed and available for review on SEDAR+ at www.sedarplus.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
21. ADDITIONAL INFORMATION
Additional information is available on SEDAR+ at www.sedarplus.com.
MIDNIGHT SUN
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