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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 11, 2023
_______________________
Trilogy Metals Inc.
(Exact name of registrant as specified in its
charter)
_______________________
British Columbia |
001-35447 |
98-1006991 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
Suite 1150, 609 Granville Street
Vancouver, British Columbia
Canada, V7Y 1G5
(Address of principal executive offices, including
zip code)
(604) 638-8088
(Registrant’s telephone number, including
area code)
N/A
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2 below):
☐ Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.24d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.23e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Common Shares |
TMQ |
NYSE American
Toronto Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging growth
company ☐
If an emerging growth
company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
On October 11, 2023, Trilogy Metals Inc. (the “Company”)
issued a press release reporting financial results for the third quarter ended August 31, 2023. A copy of the press release is furnished
as Exhibit 99.1 to this report.
In accordance with General Instruction B.2 of Form
8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liability
of that section, and shall not be incorporated by reference into any registration statement or other document filed under Securities Act
of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 7.01 | Regulation FD Disclosure |
On October 11, 2023, the Company issued a press release reporting financial
results for the third quarter ended August 31, 2023.
A copy of the press release is furnished as Exhibit 99.1 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall
not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement
or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific
reference in such filing
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
TRILOGY METALS INC. |
|
|
|
Dated: October 11, 2023 |
By: |
/s/ Elaine Sanders |
|
|
Elaine Sanders, Chief Financial Officer |
Exhibit 99.1
Trilogy Metals Reports Third Quarter Fiscal 2023
Financial Results
TSX / NYSE American
Symbol: TMQ
VANCOUVER, BC, Oct. 11, 2023 /CNW/ - Trilogy Metals
Inc. (TSX: TMQ) (NYSE American: TMQ) ("Trilogy Metals", "Trilogy" or "the Company") announces its
financial results for the third quarter ended August 31, 2023. Details of the Company's financial results are contained in the interim
unaudited consolidated financial statements and Management's Discussion and Analysis which will be available on the Company's website
at www.trilogymetals.com, on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. All amounts are in United States dollars unless otherwise
stated.
Upper Kobuk Mineral Projects ("UKMP")Activities
In July, Ambler Metals LLC ("Ambler Metals")
used the camp to support a small team of geologists who were continuing work started in 2022 on the stratigraphy and alteration of the
Arctic deposit. The focus of the work was to relog existing drill core from 13 holes across the deposit and 4 holes from regional prospects.
In addition, sampling was undertaken for chemostratigraphy and alteration footprint definition. Geological and talc models for the Arctic
deposit were updated and an updated geological and structural model for the area surrounding Arctic was commenced.
The camp was also utilized by Ambler Metals to conduct
sampling of core from the Bornite deposit to be used in a study initiated by the Center to Advance the Science of Exploration to Reclamation
in Mining ("CASERM") at the Colorado School of Mines to investigate the occurrence and distribution of critical elements, including
germanium. Ambler Metals has recently accepted a proposal from CASERM with leveraged funding from the United States Geological Survey
to contribute samples from Bornite to further investigate the occurrence, distribution, and sequestration of critical elements, including
germanium.
Ambler Metals has engaged Wood Canada Limited and
SRK Consulting (Canada) Inc. to complete an initial scoping level study on the Bornite deposit to determine if the ore at Bornite may
extend the mine life at the proposed Arctic Project. The scope of work covers mining, processing, hydrogeology, infrastructure, tailings
management, and waste rock management.
Ambler Mining District Industrial Access Project ("Ambler Access
Project")
The Alaska Industrial Development and Export Authority
("AIDEA") started field work in May 2023 utilizing a camp at Coldfoot, which work was completed in mid-September. In mid-June,
AIDEA started utilizing the Ambler Metals Bornite camp with an average of 40 people daily at camp throughout the summer with approximately
20 NANA Regional Corporation, Inc. ("NANA") and Doyon Limited shareholder hires among them. Ambler Metals recently closed the
Bornite camp with no safety incidents reported. AIDEA successfully completed the planned field program from Bornite consisting of cultural
resource inventory surveys and testing of sites over approximately 450 acres, hydraulic and hydrology studies at bridge crossings to assess
conditions for area drainage, culvert placement and bridge design, collecting topographical and bathymetric survey data to support bridge
data and fish passage culverts, engineering reconnaissance surveys and fish habitat investigations. In March 2023, the board of Ambler
Metals approved funding of $12.3 million, a 50% share of the total budget of $24.6 million for the Ambler Access Project which is being
funded equally by AIDEA and Ambler Metals. As at August 31, 2023, $6.5 million has been spent to date on logistics and cost of the field
season.
On November 15, 2022, the United States Bureau of
Land Management ("USBLM") submitted a status report announcing that it anticipated publishing a draft Supplemental Environmental
Impact Statement ("SEIS") in the second quarter of calendar 2023 and a final SEIS in the fourth quarter of calendar 2023. On
January 17, 2023 and March 20, 2023, the USBLM submitted status reports reaffirming the timing of the draft and final SEIS.
On May 19, 2023, the USBLM submitted a status report
revising the timeline for development of the SEIS and a subsequent Record of Decision. The USBLM anticipates publishing a draft SEIS in
the third quarter of calendar year 2023, a final SEIS in the first quarter of calendar year 2024, and a Record of Decision within the
second quarter of calendar year 2024.
On July 18, 2023 and September 18, 2023, the USBLM
submitted status reports reaffirming the timing of the draft SEIS, final SEIS and the Record of Decision.
Selected Results
The following selected financial information is prepared
in accordance with U.S. GAAP.
in thousands of dollars |
Three months ended |
Nine months ended |
Selected expenses |
August 31,
2023
$ |
August 31,
2022
$ |
August 31,
2023
$ |
August 31,
2023
$ |
General and administrative |
278 |
279 |
1,014 |
1,014 |
Investor relations |
18 |
18 |
71 |
155 |
Professional fees |
139 |
131 |
897 |
568 |
Salaries |
191 |
172 |
621 |
847 |
Share of loss on equity investment |
2,910 |
8,925 |
5,998 |
13,295 |
|
|
|
|
|
For the three-month period ended August 31, 2023,
we reported a net loss of $4.1 million compared to a net loss of $9.9 million for the three-month period ended August 31, 2022. The decrease
in comprehensive loss in the third quarter of 2023 compared to the same quarter in 2022 is due to the decrease in our share of loss of
Ambler Metals, and stock-based compensation and salaries. The decrease of our share of losses of Ambler Metals is mainly due to the decrease
in mineral property expenses over the comparative quarter in the prior year from the decrease in drilling, engineering and project support
costs and partially offset from the increased cost in the Ambler Access Project.
For the nine-month period ended August 31, 2023, we
reported a net loss of $11.9 million compared to a net loss of $19.0 million for the nine-month period ended August 31, 2022. The difference
for the nine-month period ended August 31, 2023, when compared to the same period in 2022, is primarily due to a $7.3 million decrease
in our equity pick-up of Ambler Metals' comprehensive loss in the current period as well as decreases in salaries and investor relations,
and partially offset from the increase in professional fees and stock-based compensation. The decrease in our share of losses of Ambler
Metals is mainly due to the decrease in mineral property expenses over the comparable period in the prior year from decreases in drilling,
engineering, and project support costs and partially offset from the increase in the Ambler Access Project cost.
Liquidity and Capital Resources
We expended $2.6 million on operating activities during
the nine-month period ending August 31, 2023 with the majority of cash spent on corporate salaries, professional fees related to our annual
regulatory filings, and annual fees paid to the Toronto Stock Exchange and the NYSE American Exchange with the United States and Canadian
securities commissions.
As at August 31, 2023, we had cash and working capital
of $3.0 million. Management continues with cash preservation strategies to reduce cash expenditures where feasible, including but not
limited to reductions in marketing and investor conferences and office expenses. In addition, the Company's Board of Directors have agreed
to take all of their fees in deferred share units in an effort to preserve cash. The Company's senior management team is also taking a
portion of their base salaries in shares of the Company to preserve cash.
All project-related costs are funded by Ambler Metals.
Amber Metals is well funded to advance the UKMP with $66.9 million in cash and $66.0 million in working capital as at August 31, 2023.
There are sufficient funds at Ambler Metals to fund this fiscal year's budget for the UKMP and the Ambler Access Project. Trilogy does
not anticipate having to fund the activities of Ambler Metals until the current cash balance of $66.9 million is expended.
Qualified Persons
Richard Gosse, P.Geo., Vice President Exploration
for Trilogy Metals Inc., is a Qualified Person as defined by National Instrument 43-101. Mr. Gosse has reviewed the scientific and technical
information in this news release and approves the disclosure contained herein.
About Trilogy Metals
Trilogy Metals Inc. is a metal exploration and development
company which holds a 50 percent interest in Ambler Metals LLC, which has a 100 percent interest in the Upper Kobuk Mineral Projects in
northwestern Alaska. On December 19, 2019, South32, a globally diversified mining and metals company, exercised its option to form a 50/50
joint venture with Trilogy. The UKMP is located within the Ambler Mining District which is one of the richest and most-prospective known
copper-dominant districts in the world. It hosts world-class polymetallic volcanogenic massive sulphide ("VMS") deposits that
contain copper, zinc, lead, gold and silver, and carbonate replacement deposits which have been found to host high-grade copper and cobalt
mineralization. Exploration efforts have been focused on two deposits in the Ambler Mining District – the Arctic VMS deposit
and the Bornite carbonate replacement deposit. Both deposits are located within a land package that spans approximately 190,929 hectares.
Ambler Metals has an agreement with NANA Regional Corporation, Inc., an Alaska Native Corporation that provides a framework for the exploration
and potential development of the Ambler Mining District in cooperation with local communities. Trilogy's vision is to develop the Ambler
Mining District into a premier North American copper producer while protecting and respecting subsistence livelihoods.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking
information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning
of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of
1995. All statements, other than statements of historical fact, included herein, including, without limitation, perceived merit of properties;
the CASERM proposal, including its objective, completion and conclusions; expectations regarding the 2023 field season and
budgets for the UKMP; the anticipated publishing date of the SEIS, the final SEIS and the Record of Decision; the continued willingness
of the Company's director and executives to receive their compensation in equity, the Company's plans to look for opportunities to reduce
its cash spend for the year; management's expectations regarding the effects of cash conservation efforts and the sufficiency of cash
for the next twelve months; the Company's future funding of Ambler Metals; and the Company's plans to provide further updates and the
timing thereof are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words
such as "expects", "anticipates", "believes", "intends", "estimates", "potential",
"possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could",
or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance
that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ materially from the Company's expectations include the uncertainties
involving our ability to conserve cash and to raise capital at terms favorable to the Company, or at all and other risks and uncertainties
disclosed in the Company's Annual Report on Form 10-K for the year ended November 30, 2022 filed with Canadian securities regulatory authorities
and with the United States Securities and Exchange Commission and in other Company reports and documents filed with applicable securities
regulatory authorities from time to time. The Company's forward-looking statements reflect the beliefs, opinions and projections on the
date the statements are made. The Company assumes no obligation to update the forward-looking statements or beliefs, opinions, projections,
or other factors, should they change, except as required by law.
View original content:https://www.prnewswire.com/news-releases/trilogy-metals-reports-third-quarter-fiscal-2023-financial-results-301952969.html
SOURCE Trilogy Metals Inc.
View original content: http://www.newswire.ca/en/releases/archive/October2023/11/c4280.html
%CIK: 0001543418
For further information: Company Contacts: Tony Giardini, President
& Chief Executive Officer, Phone: 604-638-8088; Elaine Sanders, Vice President & Chief Financial Officer
CO: Trilogy Metals Inc.
CNW 06:30e 11-OCT-23
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