Toronto-listed EarthLabs continues to post losses from its investing activities ahead of the sale of its exploration technology arm to ASX-listed ALS for C$24 million early next month.
EarthLabs, formerly GoldSpot Discoveries Corp, booked a $3.81m net loss for the September quarter and $14.19m loss for the first nine months of 2022. The latter compared with $8.85m net income for the same period in 2021.
The company announced the proposed sale of its GoldSpot exploration consulting and technology business to ALS in October, with the purchaser to assume $6m of GoldSpot liabilities as well as stumping up $24m in cash. EarthLabs said the deal was expected to close by early December.
“More than six years ago we set out to change the mining industry by integrating AI into the exploration process,” EarthLabs president and executive chairman, Denis Laviolette said this week.
“Our recently announced sale of the ExplorTech division to ALS, showcases our commitment to monetise market-leading businesses and provides significant liquidity to EarthLabs as we accelerate construction of our product portfolio.
“Despite record poor market conditions affecting fund performance, we are strongly positioned to take advantage of these turbulent markets as our subsidiaries expand subscription values and a multi-phase site architecture overhaul.
“I am pleased with progress on CEO.CA’s architecture rebuild as well as continuous updates from DigiGeoData’s interactive mapping database, tracking exploration and mining activity on a global scale.”
Laviolette said net investment losses of $3.74m in the September quarter and $12m for the first nine months of the year left the company with $35.7m of cash and investments at the end of September compared with $50.3m at the start of the year.