CDN MAVERICK CAPITAL CORP. CDN MAVERICK CAPITAL CORP.
Management's Discussion and Analysis
Six Months Ended June 30, 2022
August 29, 2022
CDN MAVERICK CAPITAL CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the six months ended June 30, 2022
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CDN MAVERICK CAPITAL CORP.
Management's Discussion and Analysis
Six Months Ended June 30, 2022
August 29, 2022
CDN Maverick Capital Corp. (the "Company" or "Maverick") was incorporated in British Columbia under the Business Corporations Act (British Columbia) and is engaged in the acquisition, exploration and development of resource properties. At market open on November 4, 2019, the Company listed on the Canadian Securities Exchange ("CSE") on the Frankfurt Exchange under the symbol A117RU, and on the OTCQB under the symbol AXVEF. At market open on November 4, 2020, the Company completed a share consolidation at a ratio of one new, post- consolidated share for every two old, pre-consolidated shares and concurrently changed its name to CDN Maverick Capital Corp. All share amounts in this management's discussion and analysis ("MD&A") are reflected on a post- consolidated basis.
These consolidated financial statements include the accounts of the Company and its 100% wholly owned subsidiaries Midas Capital Inc. ("Midas") and Acrex Minerals (U.S.) Inc. ("Acrex US"). Midas was incorporated in the Province of British Columbia and Acrex US was incorporated in the State of Nevada. Inter-company balances and transactions, including unrealized income and expenses arising from inter-company transactions, are eliminated on consolidation.
This MD&A reports on the operating results and financial condition of the Company for the six months ended June 30, 2022 and is prepared as of August 29, 2022. The MD&A should be read in conjunction with the Company's unaudited interim consolidated financial statements for the six months ended June 30, 2022 and the audited annual consolidated financial statements for the years ended December 31, 2021 and December 31, 2020, and the notes thereto which were prepared in accordance with International Financial Reporting Standards ("IFRS").
All dollar amounts referred to in this MD&A are expressed in Canadian dollars except where indicated otherwise.
Cautionary Note Regarding Forward-Looking Information
This document may contain "forward-looking information" within the meaning of Canadian securities legislation ("forward-looking statements"). These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation.
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, the Company and its operations, its planned exploration activities, the adequacy of its financial resources and statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental 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. In this document, certain forward-looking statements are identified by words including "may", "future", "expected", "intends" and "estimates". 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 consolidated financial statements and management's discussion and analysis of those statements, all of which are filed and available for review under the Company's profile on SEDAR at www.sedar.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. The Company provides 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.
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CDN MAVERICK CAPITAL CORP.
Management's Discussion and Analysis
Six Months Ended June 30, 2022
August 29, 2022
Description of Business
CDN Maverick Capital Corp. is an exploration stage company engaged in the acquisition, exploration and development of resource properties. As at June 30, 2022, the Company has interests in the following resource properties:
1. Inferno Silver Property, British Columbia, Canada
On October 12, 2021, the Company entered into a Property Option Agreement ("Agreement") to acquire
100% interest in the Inferno Silver Property, located in British Columbia, Canada, comprising of four (4) contiguous mineral claims.
The Company can acquire 100% interest for the following consideration:
- 100,000 common shares within three (3) days of the signing of the Agreement (issued); and
- incur $150,000 in exploration expenditures before December 31, 2021 (paid).
During the six months ended June 30, 2022, the Company incurred $Nil (2021 - $154,200) in exploration expenditures on the Inferno Silver Property.
2. Rainbow Canyon, Nevada - By an agreement dated March 25, 2011, the Company purchased non-patented mineral claims and staked additional claims during the same year, in Washoe County, Nevada, USA. The purchase price for the claims was US$125,000 (CAN$123,719). A 3% Net Smelter Return ("NSR") is reserved to the vendor subject to the Company's right to purchase back up to a 2% NSR by the payment of $500,000 for each 1% NSR interest purchased.
On February 8, 2017, the Company entered into an option agreement with Kingman Minerals Ltd.
("Kingman") to sell 100% interest in the Rainbow Canyon gold property. To complete the exercise of the option, Kingman must pay an aggregate of $80,000 cash by March 1, 2018. $60,000 was received from Kingman during the year ended December 31, 2017 and an impairment of $106,573 was recognized.
During the year ended December 31, 2018, this option agreement became in default as Kingman was unable to fulfill its commitment. The agreement was mutually terminated.
During the year ended December 31, 2019, the Company filed a Notice of Intent with the BLM for its Rainbow Canyon Property to include additional drilling, which would follow up on the RCR-03 gold intercept with 3-5 RC drill holes.
On January 7, 2021, the Company acquired all of the outstanding share capital of Midas Capital Inc. ("Midas") which holds a 100% interest in 25 mineral claims known as the Olinghouse Property, which is adjacent to the Company's Rainbow Canyon property in Nevada and is considered part of the Rainbow Canyon property.
Pursuant to the Share Exchange Agreement, the Company acquired all the issued and outstanding shares of Midas (1,500,000 common shares), and in consideration for which, the Company paid cash of US$50,000 and issued 700,000 common shares to the shareholders of Midas. As a result of this transaction, Midas became a wholly owned subsidiary of the Company.
As Midas did not meet the definition of a business, the Company treated this acquisition as an asset acquisition. The purchase price was allocated according to the assets acquired:
Exploration and evaluation asset acquired | $174,523 |
Total consideration | $174,523 |
During the year ended December 31, 2021, the claims in the Olinghouse Property expired and therefore the Company recognized an impairment of $174,523.
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CDN MAVERICK CAPITAL CORP.
Management's Discussion and Analysis
Six Months Ended June 30, 2022
August 29, 2022
During the six months ended June 30, 2022, the Company incurred $Nil (2021 - $210,932) in exploration expenditures on the Rainbow Canyon Property.
3. Ranger Lake Gold Project, Quebec, Canada
On August 20, 2020, the Company entered into a Property Option Agreement ("Agreement") with an arms' length vendor to acquire 100% interest in the Ranger Lake Gold Project in the Property of Quebec. Under the terms of the agreement the Company will make a cash payment of $50,000 within five business days of the signing of the Agreement, an additional cash payment of $50,000 on or before six months of the signing of the Agreement, and a final cash payment of $100,000 on or before twelve months of the signing of the Agreement. The Company must also complete $250,000 in exploration expenditures on or before twelve months of the signing of the Agreement.
The Company terminated their option on December 28, 2020, and recognized impairment of $50,000.
Risk Factors
The Company is in the business of acquiring, exploring and, if warranted, developing and exploiting natural resource properties. Mineral property exploration is a speculative business and involves a high degree of risk. There is a probability that the expenditures made by the Company in exploring its properties will not result in discoveries of commercial quantities of minerals. A high level of ongoing expenditures is required to locate and estimate ore reserves, which are the basis to further the development of a property. Capital expenditures to support the commercial production state are also very substantial.
Matters related to the principal risks faced by the Company have been disclosed in previous MD&A's filed on SEDAR and continue to apply to the activity and business of the Company.
Selected Annual Information
The following selected financial data with respect to the Company's financial condition and results of operations has been derived from the audited financial statements of the Company for the years ended December 31, 2021, 2020 and 2019 prepared in accordance with IFRS. The selected financial data should be read in conjunction with those financial statements and the notes thereto.
The following selected financial information is extracted from the audited annual consolidated financial statements of the Company prepared in accordance with IFRS.
31Dec21 | 31Dec20 | 31Dec19 | |
Interest Income | $Nil | $3,000 | $Nil |
Net Income (Loss) for the year | $(714,079) | $(550,419) | $(2,049,525) |
Income (Loss) per Share | $(0.08) | $(0.14) | $(0.03) |
Total Assets | $2,351,132 | $1,971,738 | $577,654 |
Total Liabilities | $88,248 | $93,517 | $100,331 |
Working Capital | $1,821,051 | $1,685,321 | $432,968 |
The referenced audited annual financial statements of the Company above have been prepared in accordance with IFRS. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of consolidated financial statements for a period necessarily involves the use of estimates, which have been made using careful judgment. Actual results may differ from these estimates.
Results of Operations
At June 30, 2022, total assets were $1,644,099 compared to $2,351,132 as at December 31, 2021. This decrease in assets is due to decreases in cash, marketable securities, GST recoverable, and equipment, offset by increases in prepaid expenses.
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CDN MAVERICK CAPITAL CORP.
Management's Discussion and Analysis
Six Months Ended June 30, 2022
August 29, 2022
The Company has no operating revenues.
Three months ended June 30, 2022
During the three months ended June 30, 2022, the Company reported a loss of $101,148 compared to $120,919 for the same quarter in the prior year, representing a decrease in loss of $19,771.
The decrease in loss in primarily attributed to the following:
- A decrease of $6,490 in office and general. Office and general were $4,705 for the three months ended June 30, 2022, compared to $11,295 for the same quarter in the prior year.
- A decrease of $15,611 in legal. Legal fees were $(15,611) for the three months ended June 30, 2022, compared to $Nil for the same quarter in the prior year.
These decreases were partially offset by the following expense increases:
- An increase of $1,650 in accounting and audit fees. Accounting and audit fees were $3,070 for the three months ended June 30, 2022, compared to $1,420 for the same quarter in the prior year.
Six months ended June 30, 2022
During the six months ended June 30, 2022, the Company reported a loss of $220,899 compared to $263,056 for the same quarter in the prior year, representing a decrease in loss of $42,157.
The decrease in loss in primarily attributed to the following:
- A decrease of $16,563 in filing fees. Filing fees were $15,590 for the six months ended June 30, 2022, compared to $32,153 for the same period in the prior year.
- A decrease of $9,928 in office and general. Office and general fees were $11,524 for the six months ended June 30, 2022, compared to $21,452 for the same period in the prior year.
These decreases were partially offset by the following expense increases:
- An increase of $9,551 in consulting fees. Consulting fees were $69,551 for the six months ended June 30, 2022, compared to $60,000 for the same period in the prior year.
Summary of Quarterly Results
30Jun22 | 31Mar22 | 31Dec21 | 30Sept21 | 30Jun21 | 31Mar21 | 31Dec20 | 30Sept20 | |
Interest | Nil | Nil | Nil | Nil | Nil | Nil | Nil | $337 |
Income | ||||||||
Operating | $(101,148) | $(119,751) | $(146,917) | $(129,583) | $(120,919) | $(142,137) | $(322,388) | $(177,942) |
Costs | ||||||||
Net Income | $(333,082) | $(451,087) | $(321,440) | $(129,583) | $(120,919) | $(142,137) | $(389,965) | $(81,746) |
(Loss) | ||||||||
Total Assets | $1,644,099 | $1,908,624 | $2,351,132 | $2,264,787 | $2,244,208 | $2,324,411 | $1,971,738 | $773,403 |
Total | $165,385 | $96,827 | $88,248 | $87,918 | $79,162 | $85,619 | $93,517 | $199,102 |
Liabilities | ||||||||
Working | $1,045,449 | $1,374,248 | $1,821,051 | $1,727,103 | $1,723,345 | $1,852,243 | $1,685,321 | $469,676 |
Capital | ||||||||
The following discussion outlines the reasons for some of the variations in the quarterly numbers but, as with most junior mineral exploration companies, the results of operations (including interest income and net losses) are not the main factors in establishing the financial health of the Company. Of far greater significance are the resource properties in which the Company has, or may earn an interest, its working capital and how many shares it has outstanding. The variation seen over such quarters is primarily dependent upon the success of the Company's ongoing property
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CDN Maverick Capital Corp. published this content on 30 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2022 10:15:06 UTC.
