10:24 AM EDT, 05/27/2024 (MT Newswires) -- Canadian North Resources Inc. ( CNRSF ) said Monday its first-quarter net loss before tax widened because of an increase in expenses and liabilities, among other factors.

The company reported a first-quarter net loss before tax of just over $1 million, or $0.01 per basic and diluted share, wider than a net loss of $335,735, or $0.00 per share, a year earlier.

The loss widened because of an increase in office and general to $603,081 during the three months ended March 31 from $277,600 during the same period a year ago.

Other factors included an increase in professional fees to $135,224 in Q1 from $119,138 a year earlier; an increase in accretion of lease liabilities to $48,995 in Q1 from nil a year earlier; and an increase in share-based compensation to $219,699 in Q1 from $98,228 during the three months ended March 31, 2023.

The wider loss was also driven by an increase of depreciation to $25,549 in Q1 from $22,473 a year earlier; and a decrease in flow-through share premium to nil during the quarter from $192,920 a year ago.

On March 31, the company reported a net working capital of about $4.1 million. The company had cash and cash equivalents of roughly $4.7 million.

Further, the company said it has planned for financing for the year ended Dec. 31, which includes issuing common shares from the private placement.

Among other highlights: the company said it had filed the Mineral Resources Statement in compliance with the National Instrument 43-101 Standards that defines the large and high-grade Mineral Resources at the Ferguson Lake Project. 80% of the Indicated Mineral Resource is Open Pit, which provides a solid Mineral Resource base for the initial development of a potential large mine.

It also Identified new targets with significant resource upside potential along strike and down dip of the 15 km long main mineralized horizon and on additional zones including M-Zone, A51-Zone, A51 Zone Extension, Small Island and Lake Zone, West Zone South and South Discovery Zone; And planned new metallurgical tests, economic evaluation and infrastructure and environmental studies for low-carbon footprint mine development at the Ferguson Lake Project.