Austin Gold (AUST) - 2024 Q4 - Annual Report

Management's Responsibility for Financial Statements Management is responsible for preparing the consolidated financial statements in accordance with IFRS, ensuring integrity, fairness, and maintaining internal controls Management's Responsibility Management is responsible for preparing the consolidated financial statements in accordance with IFRS, ensuring integrity, fairness, and maintaining internal controls - Management is responsible for preparing consolidated financial statements in accordance with IFRS Accounting Standards[2] - Management designs and maintains accounting systems and internal controls to ensure reliable financial records[3] - The Board of Directors, through an Audit Committee of independent directors, oversees management's financial reporting responsibilities[4] Report of Independent Registered Public Accounting Firm Manning Elliott LLP audited Austin Gold Corp.'s consolidated financial statements for 2022-2024, expressing an unqualified opinion that they present fairly the financial position, results of operations, and cash flows in conformity with IFRS Opinion on the Consolidated Financial Statements Manning Elliott LLP audited Austin Gold Corp.'s consolidated financial statements for 2022-2024, expressing an unqualified opinion that they present fairly the financial position, results of operations, and cash flows in conformity with IFRS - Manning Elliott LLP audited the consolidated financial statements for the years ended December 31, 2024, 2023, and 2022[8] - The auditors expressed an unqualified opinion, stating the financial statements present fairly in all material respects, in conformity with IFRS Accounting Standards[9] - Audits were conducted in accordance with the standards of the PCAOB[11] Consolidated Financial Statements This section presents Austin Gold Corp.'s consolidated financial statements, including statements of financial position, loss and comprehensive loss, cash flows, and changes in shareholders' equity Consolidated Statements of Financial Position Austin Gold Corp.'s total assets decreased from $12.01 million in 2023 to $9.51 million in 2024, primarily due to a significant reduction in current assets, particularly short-term investments and cash | Metric | Dec 31, 2024 | Dec 31, 2023 | | :-------------------------------- | :----------- | :----------- | | Total assets | $9,512,870 | $12,005,240 | | Current assets | $5,413,247 | $9,716,501 | | Cash and cash equivalents | $381,899 | $907,551 | | Short-term investments | $4,914,382 | $8,618,386 | | Total liabilities | $228,698 | $676,605 | | Shareholders' equity | $9,284,172 | $11,328,635 | | Deficit | $(10,099,253) | $(7,020,522) | - Total assets decreased by $2.49 million (20.8%) from 2023 to 2024[14] - Current assets decreased by $4.30 million (44.3%) from 2023 to 2024, largely due to reductions in short-term investments and cash[14] Consolidated Statements of Loss and Comprehensive Loss Austin Gold Corp. reported a net loss of $3.08 million in 2024, an improvement from $4.00 million in 2023, but still significantly higher than $1.07 million in 2022 | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Operating loss | $(3,412,440) | $(2,237,072) | $(1,717,294) | | Loss for the year | $(3,078,731) | $(4,000,671) | $(1,068,391) | | Comprehensive loss for the year | $(3,078,731) | $(4,000,671) | $(1,787,312) | | Loss per share - basic and diluted | $(0.23) | $(0.30) | $(0.09) | | Investor relations and marketing | $1,119,666 | $233,355 | $145,245 | | Share-based compensation | $911,261 | $481,394 | $162,628 | | Interest and finance income | $338,912 | $493,743 | $183,213 | - Net loss improved by 23.1% from $4.00 million in 2023 to $3.08 million in 2024, but operating loss increased by 52.5% from $2.24 million to $3.41 million[15] - Investor relations and marketing expenses increased significantly by 380% from $233,355 in 2023 to $1.12 million in 2024[15] Consolidated Statements of Cash Flows In 2024, Austin Gold Corp. used $2.45 million in operating activities, an increase from $1.69 million in 2023, with investing activities generating $1.94 million, primarily from short-term investment redemptions | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Net cash used in operating activities | $(2,454,547) | $(1,686,043) | $(1,791,812) | | Net cash generated by (used in) investing activities | $1,935,563 | $1,961,008 | $(12,517,275) | | Net cash generated by financing activities | $- | $- | $13,853,420 | | Cash and cash equivalents, end of year | $381,899 | $907,551 | $630,623 | | Expenditures on E&E assets | $(2,096,354) | $(1,563,428) | $(1,066,431) | | Redemption of short-term investments | $11,250,000 | $16,500,000 | $2,500,000 | | Purchase of short-term investments | $(7,600,000) | $(13,500,000) | $(14,000,000) | - Cash used in operating activities increased by 45.6% from $1.69 million in 2023 to $2.45 million in 2024[17] - Cash and cash equivalents decreased by 57.9% from $907,551 at the end of 2023 to $381,899 at the end of 2024[17] Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity decreased from $11.33 million at December 31, 2023, to $9.28 million at December 31, 2024, primarily due to the net loss for the year, partially offset by an increase in other reserves | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total Shareholders' Equity | $9,284,172 | $11,328,635 | $14,779,850 | | Share capital | $16,568,175 | $16,568,175 | $16,329,958 | | Other reserves | $3,390,199 | $2,355,931 | $2,044,692 | | Accumulated other comprehensive income (loss) | $(574,949) | $(574,949) | $(574,949) | | Deficit | $(10,099,253) | $(7,020,522) | $(3,019,851) | | Loss for the year | $(3,078,731) | $(4,000,671) | $(1,068,391) | | Value assigned to share options and warrants vested | $1,034,268 | $549,456 | $182,422 | - Shareholders' equity decreased by $2.04 million (18.0%) from 2023 to 2024[18] - The accumulated deficit increased by $3.08 million (43.9%) from 2023 to 2024, reflecting the net loss for the year[18] Notes to the Consolidated Financial Statements This section provides detailed explanations of the company's accounting policies, significant estimates, financial risks, and specific financial statement line items 1. Nature of Operations and Going Concern Austin Gold Corp. is a Canadian-incorporated company focused on mineral resource property acquisition, exploration, and evaluation in the western USA - Austin Gold Corp. is focused on the acquisition, exploration, and evaluation of mineral resource properties primarily in the western United States of America[21] - The company has incurred ongoing losses and expects further losses, with a net loss of $3.08 million in 2024 and cash used in operating activities of $2.45 million[23] - The going concern assumption is dependent on the discovery of economically recoverable reserves and the ability to obtain necessary financing[22] 1. (a) Nature of operations Austin Gold Corp. is a Canadian-incorporated company focused on mineral resource property acquisition, exploration, and evaluation in the western USA - Austin Gold Corp. was incorporated on April 21, 2020, in British Columbia, Canada, and its common shares are traded on the NYSE American stock exchange under the symbol 'AUST'[20] - The Company's primary focus is the acquisition, exploration, and evaluation of mineral resource properties, mainly in the western USA[21] 1. (b) Going concern assumption The company's ability to continue as a going concern is dependent on discovering economically recoverable reserves and securing future financing, as it has incurred ongoing losses and expects further losses - The consolidated financial statements are prepared on a going concern basis, assuming the Company can meet commitments and continue operations for at least twelve months from December 31, 2024[23] | Metric | Dec 31, 2024 | Dec 31, 2023 | | :-------------------------------- | :----------- | :----------- | | Net loss for the year | $(3,078,731) | $(4,000,671) | | Cash used in operating activities | $(2,454,547) | $(1,686,043) | | Cash and cash equivalents | $381,899 | $907,551 | | Working capital surplus | $5,184,549 | $9,039,896 | | Accumulated deficit | $(10,099,253) | $(7,020,522) | - Management estimates current working capital will be sufficient to fund activities for at least the next twelve months[24] 2. Basis of Preparation The consolidated financial statements are prepared in accordance with IFRS Accounting Standards, on a historical cost basis, except for financial instruments classified as fair value through profit or loss (FVTPL) - Consolidated financial statements are prepared in accordance with IFRS Accounting Standards as issued by the IASB[25] - Statements are prepared on a historical cost basis, except for FVTPL financial instruments which are stated at fair value[25] 3. Material Accounting Policy Information This section details the company's significant accounting policies, including basis of consolidation, foreign currency translation, and classification and measurement of financial instruments - The consolidated financial statements include Austin American Corporation, a 100% owned subsidiary in Nevada, USA, which holds interests in exploration projects[28] - The functional and presentation currency for the Company and its subsidiary is the United States dollar (USD)[30] - Financial assets are classified at initial recognition as measured at amortized cost, FVTPL, or FVOCI, depending on the business model and contractual cash flows[32] 3. (a) Basis of consolidation The consolidated financial statements include Austin Gold Corp. and its 100% owned US subsidiary, Austin American Corporation, which holds interests in exploration projects in Nevada - Consolidated financial statements include Austin Gold Corp. and its 100% owned subsidiary, Austin American Corporation, which holds interests in exploration projects in Nevada, USA[28] 3. (b) Foreign currency translation The functional and presentation currency of the Company and its subsidiary is the United States dollar (USD), with foreign exchange gains and losses recognized in the consolidated statement of loss - The functional and presentation currency of the Company and its subsidiary is the United States dollar (USD)[30] - Foreign exchange gains and losses are recognized in the consolidated statement of loss and comprehensive loss[31] 3. (c) Financial instruments Financial assets are classified at initial recognition as measured at amortized cost, FVTPL, or FVOCI, with cash and cash equivalents at amortized cost and marketable securities at FVTPL - Financial assets are classified at initial recognition as measured at amortized cost, FVTPL, or FVOCI[32] - Cash and cash equivalents are classified at amortized cost[41] - Marketable securities are recorded at FVTPL, with changes in fair value recognized in the consolidated statement of loss and comprehensive loss[43] 3. (d) Property and equipment Property and equipment is measured at cost less accumulated depreciation and impairment losses, with depreciation commencing when the asset is available for intended use - Property and equipment is measured at cost less accumulated depreciation and impairment losses[46] - Depreciation commences when the asset is available for intended use, calculated using declining balance rates (15% to 30%) or straight-line method[47] 3. (e) Mineral properties Mineral properties are measured at cost less accumulated depletion and impairment losses, including fair value attributable to mineral reserves and resources, mine development, and capitalized E&E expenditures - Mineral properties are measured at cost less accumulated depletion and impairment losses, including fair value attributable to mineral reserves and resources, mine development, and capitalized E&E expenditures[50] 3. (f) E&E assets All E&E expenditures are capitalized, except for those incurred before obtaining legal rights to explore an area, and are tested for impairment and reclassified to mineral properties once technical feasibility is determined - All E&E expenditures are capitalized, except for those incurred before obtaining legal rights to explore an area[51] - Exploration expenditures involve initial search for mineral deposits, while evaluation expenditures establish technical feasibility and commercial viability[52][53] - Once technical feasibility and commercial viability are determined, expenditures are tested for impairment and reclassified to mineral properties[54] 3. (g) Impairment of non-financial assets Carrying amounts of E&E assets and property and equipment are assessed for impairment at each reporting period or when circumstances suggest non-recoverability, with the recoverable amount being the higher of fair value less costs of disposal and value in use - Carrying amounts of E&E assets and property and equipment are assessed for impairment at each reporting period or when circumstances suggest non-recoverability[54] - Recoverable amount is the higher of fair value less costs of disposal and value in use[54] 3. (h) Decommissioning and restoration provision Decommissioning and restoration provisions are recognized when there is significant disturbance from E&E activities and the provision can be reliably estimated, with costs estimated, discounted, and capitalized to the related asset - Decommissioning and restoration provisions are recognized when there is significant disturbance from E&E activities and the provision can be reliably estimated[58] - Costs are estimated, discounted to net present value, and capitalized to the related asset with a corresponding liability[59] 3. (i) Income taxes Income tax is recognized in the consolidated statement of loss and comprehensive loss, unless it relates to items recognized directly in equity, with deferred tax provided for temporary differences between carrying amounts for financial reporting and taxation purposes - Income tax is recognized in the consolidated statement of loss and comprehensive loss, unless it relates to items recognized directly in equity[61] - Deferred tax is provided for temporary differences between carrying amounts of assets/liabilities for financial reporting and taxation purposes[62] 3. (j) Share capital Common shares are classified as equity, with directly attributable transaction costs deducted from equity, and the residual value method is applied for common shares and warrants issued as a unit - Common shares are classified as equity, with directly attributable transaction costs deducted from equity[64] - The residual value method is applied for common shares and warrants issued as a unit, allocating value first to common shares and then to warrants[66] 3. (k) Share-based payment transactions Share options are measured at fair value at grant date using the Black-Scholes option pricing model and recognized as an expense over the vesting period - Share options are measured at fair value at grant date using the Black-Scholes option pricing model and recognized as an expense over the vesting period[67][69] 3. (l) Loss per share Loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding, with diluted loss per share adjusting for potentially dilutive common shares - Loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding[71] - Diluted loss per share adjusts for the effects of all potentially dilutive common shares, including share options and warrants[71] 3. (m) Related party transactions Parties are considered related if one party has the ability to control or exercise significant influence over the other - Parties are considered related if one party has the ability to control or exercise significant influence over the other[72] 4. Significant Accounting Estimates and Judgments The preparation of financial statements involves significant accounting estimates and judgments, particularly concerning the company's ability to continue as a going concern, the impairment assessment of E&E assets, and the fair value determination of share options - Significant accounting policy judgments include the assessment of the Company's ability to continue as a going concern and the application of the impairment policy for E&E assets[76] - A significant source of material estimation uncertainty is the determination of the fair value of share options issued by the Company[74] - Management assessed impairment indicators for E&E assets and concluded that no impairment indicators exist as of December 31, 2024[76] 5. New Accounting Standards and Recent Pronouncements The IASB issued amendments to IFRS 9 and IFRS 7 in May 2024, effective January 1, 2026, clarifying financial instrument classification, measurement, and disclosure, which are not expected to materially impact the Company - Amendments to IFRS 9 and IFRS 7 were issued in May 2024, effective January 1, 2026, clarifying financial instrument classification and measurement; not expected to have a material impact[75] - IFRS 18, replacing IAS 1, was issued in April 2024, effective January 1, 2027, focusing on updates to the statement of profit or loss[77] - The Company is in the process of assessing the impact of IFRS 18[77] 6. Cash and Cash Equivalents As of December 31, 2024, cash and cash equivalents totaled $381,899, a decrease from $907,551 in 2023 | Metric | Dec 31, 2024 | Dec 31, 2023 | | :---------------------- | :----------- | :----------- | | Cash and cash equivalents | $381,899 | $907,551 | - Cash and cash equivalents decreased by $525,652 (57.9%) from 2023 to 2024[78] - The Company does not hold any term deposits with an original maturity date of less than three months[78] 7. Short-term Investments Short-term investments, comprising term deposits and RSTICs, decreased from $8.62 million in 2023 to $4.91 million in 2024 | Metric | Dec 31, 2024 | Dec 31, 2023 | | :---------------------- | :----------- | :----------- | | Term deposits | $4,150,487 | $7,084,482 | | RSTICs | $763,895 | $1,533,904 | | Total Short-term investments | $4,914,382 | $8,618,386 | - Short-term investments decreased by $3.70 million (43.0%) from 2023 to 2024[79] - Term deposits mature between January 8, 2025, and August 18, 2025, and RSTICs mature on July 22, 2025[79] 8. Receivables and Other Receivables and other current assets decreased from $190,564 in 2023 to $116,966 in 2024, primarily due to reductions in prepaid expenses and deposits, and tax receivables | Metric | Dec 31, 2024 | Dec 31, 2023 | | :---------------------- | :----------- | :----------- | | Prepaid expenses and deposits | $100,898 | $156,234 | | Tax receivables | $16,068 | $34,330 | | Total Receivables and other | $116,966 | $190,564 | - Receivables and other decreased by $73,598 (38.6%) from 2023 to 2024[80] 9. Marketable Securities Marketable securities, consisting of common shares in URZ3 Energy Corp., increased in value from $7,422 in 2023 to $12,404 in 2024, driven by an unrealized fair value gain of $4,982 | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Ending balance | $12,404 | $7,422 | $16,473 | | Unrealized fair value gain (loss) | $4,982 | $(9,051) | $(174,634) | - The Company holds 89,240 common shares in URZ3 Energy Corp. (formerly Nevada Exploration Inc.)[81] - Warrants in URZ (formerly NGE) expired unexercised on January 7, 2023[81] 10. E&E Assets Total Exploration and Evaluation (E&E) assets significantly increased from $2.28 million in 2023 to $4.08 million in 2024, primarily due to substantial expenditures on the Stockade Mountain and Lone Mountain projects | Project | Dec 31, 2024 | Dec 31, 2023 | | :------------------ | :----------- | :----------- | | Kelly Creek | $719,533 | $636,708 | | Lone Mountain | $1,379,437 | $776,682 | | Stockade Mountain | $1,978,504 | $867,100 | | Miller | $- | $- | | Fourmile Basin | $- | $- | | Total E&E assets | $4,077,474 | $2,280,490 | - Total E&E assets increased by $1.80 million (78.8%) from 2023 to 2024[82][83] - The Company incurred write-offs of E&E assets totaling $4,290 in 2024 (vs. $2.25 million in 2023) due to the termination of the Miller Project and Fourmile Basin Property agreements[82][83][96][99] 10. (a) Kelly Creek Project (Nevada, USA) The Company has an option to earn up to a 70% interest in a joint venture on the Kelly Creek Project with Pediment Gold LLC, requiring C$2,500,000 in E&E expenditures by June 30, 2027 - The Company has an option to earn up to a 70% interest in a joint venture on the Kelly Creek Project with Pediment Gold LLC[84] - To earn a 51% interest, the Company must incur C$2,500,000 in E&E expenditures by June 30, 2027[85] - Minimum annual royalty payments are required, increasing from $20,000 in 2024 to $30,000 by 2027 and thereafter[87][88] 10. (b) Lone Mountain Project (Nevada, USA) The Company has a mineral lease agreement with an option to purchase the Lone Mountain Project with NAMMCO, requiring pre-production payments and minimum E&E expenditures totaling $1,800,000 - The Company has a mineral lease agreement with an option to purchase the Lone Mountain Project with NAMMCO[90] - Pre-production payments are required, increasing to $30,000 annually from November 1, 2024, and further by $10,000 annually after November 1, 2025, to a maximum of $200,000[90] - Minimum E&E expenditures are required, totaling $1,800,000, with commitments of $300,000 for 2026 and 2027, and $400,000 for 2028 and 2029[91] 10. (c) Stockade Mountain Project (Oregon, USA) The Company leases a 100% interest in the Stockade Mountain Project from Bull Mountain Resources, LLC (BMR), requiring pre-production payments and BMR retaining a 2.0% net smelter return royalty - The Company leases a 100% interest in the Stockade Mountain Project from Bull Mountain Resources, LLC (BMR)[93] - Pre-production payments are required, increasing to $25,000 every six months from May 16, 2025[93] - BMR retains a 2.0% net smelter return royalty on claims owned by BMR and 0.25% on third-party claims[94] 10. (d) Miller Project (Nevada, USA) The mineral lease and option agreement for the Miller Project was terminated on December 18, 2023, resulting in a write-off of E&E assets of $897 in 2024 - The mineral lease and option agreement for the Miller Project was terminated on December 18, 2023[96] - As a result of the termination, the Company incurred a write-off of E&E assets of $897 in 2024 (vs. $1.02 million in 2023)[96] 10. (e) Fourmile Basin Property (Nevada, USA) The mineral lease and option agreement for the Fourmile Basin Property was terminated on April 13, 2023, leading to a write-off of E&E assets of $3,393 in 2024 - The mineral lease and option agreement for the Fourmile Basin Property was terminated on April 13, 2023[99] - A write-off of E&E assets of $3,393 was recorded in 2024 (vs. $883,862 in 2023) due to the termination[99] 10. (f) Project reclamation requirements As of December 31, 2024, the Company holds surety bonds totaling $38,863 in favor of the BLM and $43,252 in favor of the Oregon Department of Geology and Mineral Industries for reclamation requirements - As of December 31, 2024, the Company holds surety bonds totaling $38,863 in favor of the BLM and $43,252 in favor of the Oregon Department of Geology and Mineral Industries for reclamation requirements[100] 11. Property and Equipment Property and equipment, consisting of exploration equipment and IT hardware, increased to $9,745 in 2024 from $827 in 2023, primarily due to $11,000 in additions, partially offset by depreciation | Metric | Dec 31, 2024 | Dec 31, 2023 | | :---------------------- | :----------- | :----------- | | Net book value | $9,745 | $827 | | Additions | $11,000 | $- | | Depreciation | $(2,082) | $(354) | - Net book value of property and equipment increased by $8,918 (1078%) from 2023 to 2024, driven by $11,000 in additions[101] - Property and equipment consists of exploration equipment and information technology hardware[101] 12. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities significantly decreased from $676,605 in 2023 to $228,698 in 2024, mainly driven by a reduction in trade payables | Metric | Dec 31, 2024 | Dec 31, 2023 | | :-------------------------------- | :----------- | :----------- | | Trade payables | $183,717 | $638,671 | | Accrued liabilities | $44,981 | $37,934 | | Total Accounts payable and accrued liabilities | $228,698 | $676,605 | - Total accounts payable and accrued liabilities decreased by $447,907 (66.2%) from 2023 to 2024[102] 13. Share Capital and Other Reserves The company's share capital remained unchanged at $16.57 million in 2024, while other reserves increased to $3.39 million, primarily due to the value assigned to share options and warrants vested | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Share capital | $16,568,175 | $16,568,175 | $16,329,958 | | Other reserves | $3,390,199 | $2,355,931 | $2,044,692 | | Outstanding share options | 3,621,666 | 3,463,333 | 1,093,333 | | Total share-based compensation expense (options) | $1,030,742 | $515,133 | $157,043 | | Outstanding warrants | 100,000 | 100,000 | 362,833 | | Total share-based compensation expense (warrants) | $3,526 | $34,323 | $26,480 | - Other reserves increased by $1.03 million (44.0%) from 2023 to 2024, mainly from share options and warrants vested[106][109][111] - Total share-based compensation expense for share options nearly doubled from $515,133 in 2023 to $1.03 million in 2024[109] 13. (a) Share capital As of December 31, 2024, authorized share capital consists of an unlimited number of common and preferred shares without par value, with the Company issuing 3,754,750 shares at $4.00 for gross proceeds of $15,019,000 during its IPO on May 6, 2022 - As of December 31, 2024, authorized share capital consists of an unlimited number of common and preferred shares without par value[104] - On May 6, 2022, the Company issued 3,754,750 shares at $4.00 for gross proceeds of $15,019,000 during its IPO[105] 13. (b) Other reserves Other reserves increased by $1.03 million (43.9%) from 2023 to 2024, primarily due to an increase in share options | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :---------------------- | :----------- | :----------- | :----------- | | Other reserve - Share options | $3,326,971 | $2,296,229 | $1,781,096 | | Other reserve - Warrants | $63,228 | $59,702 | $263,596 | | Total Other reserves | $3,390,199 | $2,355,931 | $2,044,692 | - Other reserves increased by $1.03 million (43.9%) from 2023 to 2024[106] 13. (c) Share options The Company's stock incentive plan allows for granting non-transferable equity awards, with common shares reserved not exceeding 3,827,175, and total share-based compensation expense for share options was $1.03 million in 2024 - The Company's stock incentive plan allows for granting non-transferable equity awards, with common shares reserved not exceeding 3,827,175[107] | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :---------------------- | :----------- | :----------- | :----------- | | Outstanding, January 1, | 3,463,333 | 1,093,333 | 716,663 | | Granted | 225,000 | 2,370,000 | 460,003 | | Expired | (66,667) | - | (83,333) | | Outstanding, December 31, | 3,621,666 | 3,463,333 | 1,093,333 | | Weighted average exercise price | $1.01 | $1.06 | $1.67 | - Total share-based compensation expense for share options was $1.03 million in 2024, with $907,735 expensed and $123,007 capitalized to E&E assets[109] 13. (d) Warrants The Company issued 100,000 warrants to an investor relations consultant on November 1, 2022, vesting over tranches at an exercise price of $0.81 and expiring November 1, 2025 | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :---------------------- | :----------- | :----------- | :----------- | | Outstanding, January 1, | 100,000 | 362,833 | - | | Warrants issued - IPO | - | - | 262,833 | | Warrants issued - consultants | - | - | 100,000 | | Warrants expired | - | (262,833) | - | | Outstanding, December 31, | 100,000 | 100,000 | 362,833 | | Weighted average exercise price | $0.81 | $0.81 | $3.41 | | Weighted average remaining life | 0.84 years | 1.84 years | 1.40 years | - The Company issued 100,000 warrants to an investor relations consultant on November 1, 2022, vesting over tranches at an exercise price of $0.81 and expiring November 1, 2025[113] - 262,833 underwriter warrants issued in connection with the IPO expired unexercised on November 6, 2023[114] 14. Related Party Transactions and Balances Key management compensation, including share-based compensation, salaries, and directors' fees, increased to $1.76 million in 2024 from $1.09 million in 2023 | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total Directors and key management compensation | $1,761,332 | $1,089,451 | $740,119 | | Share-based compensation | $993,611 | $472,236 | $136,148 | | Management salaries and consulting fees | $694,074 | $544,352 | $559,591 | | Directors' fees | $73,647 | $72,863 | $44,380 | - Total key management compensation increased by $671,881 (61.7%) from 2023 to 2024[116] - The Company incurred $67,072 in expenditures with P2 Gold Inc. for CFO shared-services in 2024[118] - The Company purchased $11,000 of exploration equipment from URZ (formerly NGE), a related party where some Company directors also serve[120] 15. Supplemental Cash Flow Information Non-cash items within investing activities related to E&E assets included $418,087 from accounts payable and accrued liabilities and $123,007 from share-based compensation in 2024, totaling $541,094 | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Accounts payable and accrued liabilities | $418,087 | $(532,752) | $(37,130) | | Share-based compensation | $123,007 | $68,062 | $26,173 | | Total net change in non-cash items | $541,094 | $(464,690) | $(10,957) | - The net change in non-cash items within investing activities related to E&E assets was a positive $541,094 in 2024, a significant shift from a negative $464,690 in 2023[121] 16. Financial Risk Management The company is exposed to market risk (currency and interest rate), credit risk, and liquidity risk, which are managed by investing cash with Canadian Tier 1 financial institutions, monitoring cash flows, and maintaining capital through equity - The Company is exposed to market risk (currency risk and interest rate risk), credit risk, and liquidity risk[122][124] - Risk management is overseen by the Board of Directors and regularly discussed with the Audit Committee[123] - The Company mitigates credit risk by investing cash and short-term investments with Canadian Tier 1 chartered financial institutions[130] 16. (a) Market risk Market risk includes currency risk and interest rate risk, affecting cash flows or financial instrument values, with the Company exposed to currency risk on CAD-denominated financial instruments - Market risk includes currency risk and interest rate risk, affecting cash flows or financial instrument values[124] - The Company is exposed to currency risk on CAD-denominated financial instruments; a 10% change in USD:CAD exchange rate would have a minor impact on pre-tax loss[125][126] - The impact of a 1% change in variable interest rates on pre-tax loss would be nominal[128] 16. (b) Credit risk Credit risk is the potential loss if a counterparty fails to meet contractual obligations, primarily from cash and cash equivalents and short-term investments, mitigated by investing with Canadian Tier 1 financial institutions - Credit risk is the potential loss if a counterparty fails to meet contractual obligations, primarily from cash and cash equivalents and short-term investments[129] | Metric | Dec 31, 2024 | Dec 31, 2023 | | :---------------------- | :----------- | :----------- | | Cash and cash equivalents | $381,899 | $907,551 | | Short-term investments | $4,914,382 | $8,618,386 | | Total maximum credit exposure | $5,296,281 | $9,525,937 | - Credit risk is mitigated by investing with Canadian Tier 1 chartered financial institutions, with management believing expected credit loss is nominal[130] 16. (c) Liquidity risk Liquidity risk is managed by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities - Liquidity risk is managed by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities[131] | Metric | Carrying amount | Contractual cash flows | Due within 1 year | | :-------------------------------- | :-------------- | :--------------------- | :---------------- | | Accounts payable and accrued liabilities | $228,698 | $228,698 | $228,698 | 16. (d) Capital management Capital management objectives are to safeguard the ability to continue as a going concern and provide financial capacity for strategic objectives, with the capital structure consisting of equity attributable to common shareholders - Capital management objectives are to safeguard the ability to continue as a going concern and provide financial capacity for strategic objectives[133] - The capital structure consists of equity attributable to common shareholders, comprising share capital, other reserves, AOCI, and deficit[134] 16. (e) Fair value estimation Financial assets and liabilities are measured using a fair value hierarchy (Level 1, 2, 3) that prioritizes observable inputs, with marketable securities fair valued using URZ's share price on the TSX Venture Exchange (Level 1) - Financial assets and liabilities are measured using a fair value hierarchy (Level 1, 2, 3) that prioritizes observable inputs[136][137] | As at December 31, 2024 | Carrying value | Fair value Level 1 | Fair value Level 2 | Fair value Level 3 | | :---------------------- | :------------- | :----------------- | :----------------- | :----------------- | | Marketable securities | $12,404 | $12,404 | $- | $- | | As at December 31, 2023 | Carrying value | Fair value Level 1 | Fair value Level 2 | Fair value Level 3 | | :---------------------- | :------------- | :----------------- | :----------------- | :----------------- | | Marketable securities | $7,422 | $7,422 | $- | $- | - Marketable securities are fair valued using URZ's share price on the TSX Venture Exchange (Level 1)[139] 17. Taxation The company has significant tax loss carryforwards in Canada ($4.86 million) and the USA ($2.39 million) as of December 31, 2024, with no deferred tax asset recognized due to the improbability of sufficient future taxable earnings | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Tax loss carry forwards (Canada) | $4,855,399 | $2,477,382 | $1,191,205 | | Tax loss carry forwards (USA) | $2,390,768 | $78,452 | $50,427 | | Deferred income taxes not recognized | $(1,985,518) | $(1,405,289) | $(694,982) | | Current income tax expense | $150 | $155 | $- | - The Company has significant tax loss carryforwards in Canada (expiring 2040-2044) and the USA[140] - A deferred tax asset has not been recognized as it is not probable that sufficient future taxable earnings will be available[141] 17. (a) Deferred income taxes Deferred income taxes arise from temporary differences between accounting and tax amounts, with the Company having significant tax loss carryforwards in Canada ($4.86 million) and the USA ($2.39 million) as of December 31, 2024 - Deferred income taxes arise from temporary differences between accounting and tax amounts[140] - The Company has tax loss carryforwards of approximately $4.86 million in Canada and $2.39 million in the USA as of December 31, 2024[140] - No deferred tax asset has been recognized due to the improbability of sufficient future taxable earnings[141] 17. (b) Income tax expense The current income tax expense was $150 in 2024, consistent with $155 in 2023 | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Expected income tax recovery | $(831,217) | $(1,080,139) | $(288,466) | | Deferred income taxes not recognized | $580,229 | $710,308 | $553,402 | | Current income tax expense | $150 | $155 | $- | - The current income tax expense was $150 in 2024, consistent with $155 in 2023[142] 18. Commitments The company has an introductory agent agreement with BMR for mineral properties, requiring escalating agent fees upon acquisition and a 0.5% net smelter return royalty if commercial production is achieved - The Company has an introductory agent agreement with BMR, requiring escalating agent fees upon mineral property acquisition and a 0.5% net smelter return royalty if commercial production is achieved[143] - The BMR Agreement was in effect for the Miller Project until its termination on December 18, 2023, during which $35,000 in introductory agent fees were paid[144] - As of December 31, 2024, the BMR Agreement is not in effect for any of the Company's mineral projects[144] 19. Segmented Information The company operates as a single business segment: exploration and development of mineral projects, all of which are located in the USA - Exploration and development of mineral projects is considered the Company's single business segment[145] - All of the Company's E&E assets are located in the USA[145]