XML 43 R10.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Investment in Ambler Metals LLC | 12 Months Ended
--- | ---
Nov. 30, 2021
Investment in Ambler Metals LLC |
Investment in Ambler Metals LLC | ​ 4) Investment in Ambler Metals LLC
(a) | Formation of Ambler Metals LLC
On February 11, 2020, the Company completed the formation of a 50/50 joint venture named Ambler Metals with South32 Limited (“South32”). As part of the formation of the joint venture, Trilogy contributed all its assets associated with the UKMP, including the Arctic and Bornite Projects, while South32 contributed $145 million, resulting in each party’s subsidiaries directly owning a 50% interest in Ambler Metals. To assist Ambler Metals during the initial set up phase, Trilogy paid all of Ambler Metals’ invoices and was being reimbursed pursuant to a services agreement (the “Services Agreement”) between Trilogy and Ambler Metals until the back office transitioned to a new permanent team employed by the joint venture. The Services Agreement ended on December 31, 2020. Ambler Metals is an independently operated company jointly controlled by Trilogy and South32 through a four-member board, of which two members are currently appointed by Trilogy based on its 50% equity interest. All significant decisions related to the UKMP require the approval of both companies. We determined that Ambler Metals is a VIE because it is expected to need additional funding from its owners for its significant activities. However, we concluded that we are not the primary beneficiary of Ambler Metals as the power to direct its activities, through its board, is shared under the Ambler Metals LLC limited liability company agreement. As we have significant influence over Ambler Metals through our representation on its board, we use the equity method of accounting for our investment in Ambler Metals. Our investment in Ambler Metals was initially measured at its fair value of $176 million upon recognition. Our maximum exposure to loss in this entity is limited to the carrying amount of our investment in Ambler Metals, which totaled $160.1 million at November 30, 2021. The following table summarizes the gain on derecognition of the UKMP assets upon transfer to the Ambler Metals joint venture on February 11, 2020. ​
​ | ​ | ​ | ​
​ |  | in thousands of dollars
​ |  | $ | ​
Fair value ascribed to Ambler Metals LLC interest | ​ | 176,000 | ​
Less: carrying value of contributed /eliminated assets | ​ |  | ​
Mineral properties | ​ | (30,631) | ​
Property, plant and equipment located in Alaska | ​ | (618) | ​
Elimination of Fairbanks warehouse right of use asset | ​ | (93) | ​
Elimination of prepaid State of Alaska mining claim fees | ​ | (303) | ​
Add: | ​ |  | ​
Reimbursement of claims staking | ​ | 44 | ​
Demobilization costs of drills | ​ | 278 | ​
Cancellation of Fairbanks warehouse lease liability | ​ | 93 | ​
Fair value of mineral properties purchase option | ​ | 31,000 | ​
Gain on derecognition | ​ | 175,770 | ​
​
(b) | Carrying value of investment in Ambler Metals
During the year ended November 30, 2021, Trilogy recognized, based on its 50% ownership interest in Ambler Metals, an equity loss equivalent to its pro rata share of Ambler Metals' net loss of $26.2 million for the year ended November 30, 2021 ( 2020 - $5.7 million). The carrying value of Trilogy’s 50% investment in Ambler Metals as at November 30, 2021 is summarized on the following table. ​
​ | ​ | ​ | ​
​ |  | in thousands of dollars
​ |  | $ | ​
February 11, 2020, fair value ascribed to Ambler Metals interest | ​ | 176,000 | ​
Share of loss on equity investment from February 11, 2020 to November 30, 2020 | ​ | (2,855) | ​
November 30, 2020, investment in Ambler Metals | ​ | 173,145 | ​
Share of loss on equity investment for the year ending November 30, 2021 | ​ | (13,082) | ​
November 30, 2021, investment in Ambler Metals | ​ | 160,063 | ​
​ ​
(c) | The following table summarizes Ambler Metals’ Balance Sheet as at November 30, 2021.
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | in thousands of dollars
​ | ​ | November 30, 2021 | ​ | ​ | November 30, 2020 | ​
​ |  | $ |  |  | $ |
Total assets | ​ | 149,374 | ​ | ​ | 171,991 | ​
Cash | ​ | 61,205 | ​ | ​ | 81,673 | ​
Loan receivable from South32 (current and long-term) | ​ | 55,355 | ​ | ​ | 58,478 | ​
Mineral properties | ​ | 30,757 | ​ | ​ | 30,705 | ​
Total liabilities | ​ | (5,043) | ​ | ​ | (1,496) | ​
Accounts payable and accrued liabilities | ​ | (4,148) | ​ | ​ | (1,445) | ​
Members' equity (Total assets less Total liabilities) | ​ | 144,331 | ​ | ​ | 170,495 | ​
​
(d) | The following table summarizes Ambler Metals’ net loss for the year ended November 30, 2021 and from the formation of the joint venture on February 11, 2020 to the end of the reporting period on November 30, 2020. For the prior year comparative, $0.3 million has been reclassed from general and administrative expense to mineral properties expense in order to reflect the current year presentation.
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | in thousands of dollars
​ | ​ | Year ended | ​ | ​ | February 11, 2020 to | ​
​ | ​ | November 30, 2021 | ​ | ​ | November 30, 2020 | ​
​ |  | $ |  |  | $ |
Depreciation | ​ | 77 | ​ | ​ | 95 | ​
Corporate salaries and wages | ​ | 2,421 | ​ | ​ | 614 | ​
General and administrative | ​ | 756 | ​ | ​ | 653 | ​
Lease expense | ​ | 276 | ​ | ​ | 48 | ​
Mineral property expense | ​ | 22,639 | ​ | ​ | 3,488 | ​
Professional fees | ​ | 1,047 | ​ | ​ | 1,990 | ​
Foreign exchange (gain)/loss | ​ | 6 | ​ | ​ | 3 | ​
Interest income | ​ | (1,058) | ​ | ​ | (1,180) | ​
Comprehensive loss | ​ | 26,164 | ​ | ​ | 5,711 | ​
​
(e) | Related party transactions - services agreement income
During the fiscal year, the Company charged approximately $22,000 (2020 - $0.9 million) of expenses related to technical services, including geological, engineering, environmental and human resources and accounting services in connection with the Services Agreement. In addition, the Company received payments of approximately $4,000 (2020 - $2.8 million) related to operating expenses paid on behalf of Ambler Metals for the year ended November 30, 2021.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration