What changed in this filing

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Item 7. Management’s Discussion and Analysis

2022-10-31 compared with 2021-10-29 · 38 added, 15 removed, 42 unchanged (56% of the section changed)

9 unchanged sentences

Filing and regulatory

Foreign exchange

Foreign exchange loss (gain)

General and administrative

5 unchanged sentences

Loss before other items

Gain (loss) on fair value adjustment on warrant derivatives

Gain on settlement of equipment loan

Gain on fair value adjustment on warrant derivatives

Write-off on payable

Net loss for the year

3 unchanged sentences

Weighted average number of common shares outstanding (basic and diluted)

Our operating expenses decreased during the year ended July 31, 2021 compared to the prior year primarily as a result of lower costs as a result of moderated activities by our company.

Our operating expenses increased during the year ended July 31, 2022 compared to the prior year primarily as a result of increased costs as a result of increased activities by our Company.

These include salaries, filing and regulatory, general and administrative, professional fees, driven by the need for expenses related to planning and researching our mineral properties, and activity involved in raising funds in the recent private placements.

As a result of the ongoing activities, significant expenses during the year ended July 31, 2022 include:

Decrease in mineral exploration costs to $782,261 (2020 - $1,636,791) related to less activities and exploration work on the I-M Mine Property during the year;

Increase in share-based payments to $560,792 (2020 - $357,271) for the grant of options pursuant to our stock option plan to incentivize management and certain consultants;

Increase in professional fees to $517,092 (2020 - $244,764) related to an increase in legal and regulatory items pertaining to the dewatering of the mine.

Increase in mineral exploration costs to $788,684 (2021 - $782,261) related to activities surrounding the Use Permit application;

Decrease in share-based payments to $406,790 (2021 - $560,792) for the grant of options pursuant to our stock option plan to incentivize management and certain consultants;

Increase in professional fees to $738,119 (2021 - $517,092) related to an increase in legal and regulatory items pertaining to the application for a Use Permit to Nevada County California;

Increase in other income to $79,137 (2021 - $4,888) related to an increase in rental income for property use and license agreement;

Liquidity and Capital Resources

1 unchanged sentence

During the year ended July 31, 2022, the Company used $2,694,359 in net cash on operating activities, compared to $2,853,475 in net cash on operating activities during the prior year.

The difference in net cash used in operating activities during the year was largely due to lower level of activity relating to mineral exploration within the I-M Mine Project.

The difference in net cash used in operating activities during the year was largely due to the increase in our net loss for the most recent year, as we incurred expenses relating to activities surrounding the Use Permit application .

During the year ended July 31, 2022, we used net cash of $Nil (2021 - $Nil) in investing activities for the Company

During the year ended July 31, 2021, we generated net cash from financing activities of $248,198 (2020 - $6,231,357).

The Company completed private placements totaling $250,000 (2020 - $5,499,131) in gross proceeds.

We expect to operate at a loss for at least the next 12 months.

We have received additional financing during the year ended July 31, 2021 through private placements for a total of $250,000 in gross proceeds but we cannot provide any assurance that additional funding will be available to finance our operations on acceptable terms in order to enable us to carry out our business plan.

There are no assurances that we will be able to complete further sales of our common stock or any other form of additional financing.

If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to carry out any further exploration work on the I-M Mine Property or the other properties in which we own an interest.

However, management believes that they will be able to raise funding based on their ability to do so in the past.

During the year ended July 31, 2022, the Company received cash from financing activities of $2,392,998 (2021 - $248,198) related to the private placement during the year ended July 31, 2022.

The Company expects to operate at a loss for at least the next 12 months.

It has no agreements for additional financing and cannot provide any assurance that additional funding will be available to finance its operations on acceptable terms in order to enable it to carry out its business plan.

There are no assurances that the Company will be able to complete further sales of its common stock or any other form of additional financing.

However, the Company has been able to obtain such financings in the past.

If the Company is unable to achieve the financing necessary to continue its plan of operations, then it will not be able to carry out any exploration work on the Idaho-Maryland Property or the other properties in which it owns an interest and its business may fail.

On March 11, 2020, the novel coronavirus outbreak ("COVID-19") was declared a pandemic by the World Health Organization.

8 unchanged sentences

We continue to follow government health protocols including our continued "work from home" protocol for personnel whose attendance at the office or work sites is not critical.

In late February 2022, Russia launched a large scale military attack on Ukraine.

The invasion significantly amplified already existing geopolitical tensions among Russia, Ukraine, Europe, NATO and the West, including Canada.

In response to the military action by Russia, various countries, including Canada, the United States, the United Kingdom and European Union issued broad-ranging economic sanctions against Russia.

Such sanctions included, among other things, a prohibition on doing business with certain Russian companies, large financial institutions, officials and oligarchs;

a commitment by certain countries and the European Union to remove selected Russian banks from the Society for Worldwide Interbank Financial Telecommunications, or SWIFT, the electronic banking network that connects banks globally;

a ban of oil imports from Russia to the United States;

and restrictive measures to prevent the Russian Central Bank from undermining the impact of the sanctions.

Additional sanctions may be imposed in the future.

Such sanctions (and any future sanctions) and other actions against Russia may adversely impact, among other things, the Russian economy and various sectors of the economy, including but not limited to, financials, energy, metals and mining, engineering and defense and defense-related materials sectors;

result in a decline in the value and liquidity of Russian securities;

result in boycotts, tariffs, and purchasing and financing restrictions on Russia's government, companies and certain individuals;

weaken the value of the ruble;

downgrade the country's credit rating;

freeze Russian securities and/or funds invested in prohibited assets and impair the ability to trade in Russian securities and/or other assets;

and have other adverse consequences on the Russian government, economy, companies and region.

Further, several large corporations and U.S.

states have announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses.

The ramifications of the hostilities and sanctions may not be limited to Russia, Ukraine and Russian and Ukrainian companies and may spill over to and negatively impact other regional and global economic markets (including Europe, Canada and the United States), companies in other countries (particularly those that have done business with Russia and Ukraine) and on various sectors, industries and markets for securities and commodities globally, such as oil and natural gas.

Accordingly, the actions discussed above and the potential for a wider conflict could increase financial market volatility and cause severe negative effects on regional and global economic markets, industries, and companies.

In addition, Russia may take retaliatory actions and other countermeasures, including cyberattacks and espionage against other countries and companies around the world, which may negatively impact such countries and companies.

The extent and duration of the military action or future escalation of such hostilities, the extent and impact of existing and future sanctions, market disruptions and volatility, and the result of any diplomatic negotiations cannot be predicted.

While we expect any direct impacts to our business to be limited, the indirect impacts on the economy and on the mining industry and other industries in general could negatively affect our business and may make it more difficult for us to raise equity or debt financing.

In addition, the impact of other current macro-economic factors on our business, which may be exacerbated by the war in Ukraine - including inflation, supply chain constraints and geopolitical events - is uncertain.

Off-Balance Sheet Arrangements

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis