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Thanks again. There is no cash in exchange. These warrants expired and were cashless as the exercise price was higher than the current market value. I take that the entry will be Cr Financial Asset/ Dr OCI in full ?

Thank you, Leo. It is an equity instrument designated at FVOCI. So what would be the entry at derecognition?

Good afternoon, I have a question regarding an investment that is valued at FVOCI. The warrants will expire soon and wanted some advice on how the derecognition should be handled in accordance with IFRS 9. Can someone please confirm if my understanding is correct below: 1. remeasure the investment a...

Thank you very much Leo.

Thanks but I thought level 2 are for instruments with a quoted price. However, this is a loan with fixed payments and is non-interest bearing....

All,

I have a question and need reconfirmation. If there is a long-term loan valued at amortized cost would that be considered a level 3 in the fair value hierarchy in the FS?

Thank you

Thank you. I would agree with your suggestion. Just wanted to get another view. Thank you again!

It is considered a fund that has zero risk. You are guaranteed your investment plus accrued interest. The thing is you don't have access to the cash let's say for 60 days and can accrue interest until the one-year maturity if the funds have not been withdrawn.

Sorry.. Guaranteed Investment Certificate

Hi all,

If I have a cashable GIC within 30, 60 or 90 days with a maturity term of 1 year would you consider that part of cash and cash equivalents or Term deposits on the FS?

Thoughts?

Thank you, Leo. I really appreciate all the input provided. I will revert back once it's been finalized.

I see what you mean. However, the investor is giving $10M upfront for a future royalty but requires repayment totalling $2.5M over 5 years until the company reaches commercial production. However, if the company is unable to produce the investor would not be entitled to receive the remaining $7.5M. ...

Thanks, Leo. Thinking about this some more, although the underlying value can change due to the discount on the shares, however, it wouldn't meet one of the criteria of a derivative "no initial investment or small investment" since we are receiving a large upfront payment. Right? The Royal...

Hello, Of course. The payment is fixed at $200,000, however, we have the option to issue common shares of the Company at a price per common share equal to 95% of the volume-weighted average price of the common shares for the 5 trading days immediately prior to the date payment is due. This means we ...

Looking at this more in detail there is actually a 5 % discount on the shares in case we decide to settle for shares instead of cash. Does this give rise to a derivative now?

Let me think about this one.... I will come back!

That's correct. The amortization would begin at the time we are in a position to sell the commodity. At that point we would trigger a deferred revenue liability on our books and draw it down accordingly....

No problem. No your essentially selling a % of your mineral rights away.....

Question - Since the loan is non-interest bearing, can you please confirm if the initial recognition should be at the Fair Value and then the loan subsequently accounted for using the amortized cost method?

Thank you, Leo. Appreciate the input. I would say that the initial advance on the Royalty should go against the Mineral Property as a reduction as it will be treated as a "Acquisition of mineral interest" since the NSR will be paid as long as its producing, for the Royalty holder this will...

net Smelter Royalty

Hello there, There are two elements within the agreement. 1. Its a royalty financing therefore, the royalty holder will provide an advance of $10M for a future NSR if we were to enter into commercial production. However, for the next 3 years until we do so, they require a minimum payment of$200k qua...

Thank you.

That is correct. It’s variable number of shares for a fixed amount.

Hello there!

The conversion factor is fixed USD 200,000 at the sole discretion of the company to pay back in cash or shares = to the value of the minimum payment.

Thanks so much.

Hello there, I had a question regarding a long-term loan connected to royalty financing. I just wanted to get a better understanding of if the transaction below would be considered a derivative. Entered into a $9M loan that requires a minimum fixed amount of quarterly payments of $200,000 that is no...